Remember the forbearance fracas of 2006 and 2007, when the FCC seemed to be throwing regulatory relief to LECs left and right? Well, such activity slowed in 2008 with just two important decisions passed, quietly, and forbearance faded into the background. That could all change in 2009, however, when a rash of petitions comes due.
Two issues are at in the spotlight. The first relates to Automated Reporting Management Information System (ARMIS) reports, a big phrase for the financial and accounting data AT&T Inc. (T), Verizon Communications Inc. (VZ) and Qwest Communications International Inc. (Q) must submit to regulators. The second will take the first major step toward determining whether IP voice traffic is subject to intercarrier compensation payments.
For competitive service providers, the pending petitions probably wouldn’t pose much of a threat once President-elect Barack Obama seats his own FCC commissioners. But one of the entreaties has a Jan. 11 deadline, although that deadline could be extended by 90 days; another must be acted upon by Jan. 17 or automatically go into effect; and another requires action by Jan. 21, the day after Obama takes office. It’s a timing kerfuffle that lends FCC Chairman Kevin Martin one last chance to deregulate the Bells further, although some CLECs stand to benefit if they don’t have to pay for VoIP intercarrier compensation.
ARMIS: 2008 and 2009 Activity
In April of this year, the FCC approved AT&T’s request not to have to file a number of cost-assignment reports that fall under the ARMIS umbrella. The majority said such regulation isn’t necessary in a price-cap environment.
Then, in September (and on a Saturday, no less) commissioners gave more service quality and infrastructure ARMIS relief to AT&T, as well as to Verizon and Qwest. Most recently, the FCC on Dec. 12 granted Qwest’s plea for forbearance from additional ARMIS requirements and commissioners provided the same respite for Verizon and AT&T.
On the surface, the ARMIS forbearance appears mundane and decidedly un-sexy. Look closer, though, and you’ll find it means that incumbent service providers no longer have to report on matters including quality of service; installation and repair intervals; common truck-blockage; total switch downtime; two minutes or more downtime; customer service quality complaints; number of local switches; access lines in service by state; and outside plant statistics.
Commissioners justified the forbearance by noting that neither smaller wireline carriers nor cable or wireless providers file such reports, so Bell-only information paints an incomplete picture. But watchdog group TeleTruth decried the action as strip-mining the basic data phone companies should supply to the FCC into “nothing useful.”
Carriers still will “voluntarily” file service quality reports for 24 months, and maintain operating reports, also for 24 months.
For the two Democrats on the commission, that wasn’t good enough. Michael Copps, in his statement on the Dec. 12 decision, said the FCC now won’t be able to provide “useful guidance and assistance” to people because there will be no data to show. Jonathan Adelstein said not requiring the ARMIS reports in question is like a pilot landing a plane “with eyes closed and instruments off.”
