SBC Has a Plan for the FCC

Continuing to lobby for the elimination of UNE-P regulations, SBC proposes to the FCC a transition plan for a viable wholesale model

November 20, 2002

1 Min Read

WASHINGTON -- To better serve consumers' interests and restore the health of the telecommunications industry, SBC Communications Inc. (NYSE:SBC - News) has proposed a policy framework to the Federal Communications Commission (FCC) that helps transition the industry to a sustainable wholesale model for local telephone service."As the industry and policymakers come to terms with the best way to promote healthy competition, SBC recognizes that we must all work toward solutions that strike an equitable balance of interests," said William Daley, president of SBC Communications. "We have offered to the Commission a reasonable framework that will help bring certainty back into the market, establishes a healthy model for sustainable competition and which promotes investment in the nation's telecom infrastructure."In its proposal to the FCC, SBC outlined its solutions-oriented approach. Highlights of SBC's proposal include:

  • Establishing a two-year transitional wholesale offering for serving residential customers that is functionally equivalent to the unbundled network element platform (UNE-P) at a nationwide rate of $26 per month, which does not include profit and certain other relevant costs;

  • Offering competitors 12-months in which to transition existing residential UNE-P customers to the new rate; and

  • Eliminating the UNE-P requirements for business customers, effective upon the FCC's Triennial Review order date.

Using AT&T's own revenue data, SBC estimates that its proposed plan will deliver solid margins for competitors while enabling local phone companies to recover costs associated with operating and maintaining the telephone networks.In addition, SBC has proposed a two-year transitional period that provides competitors with ample time in which to invest in their own facilities.SBC Communications Inc.

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