Fortunately for CLECs, copper loop retirement remains more of a theoretical threat than a real one. Nonetheless, one prominent state association continues to push for procedural safeguards in case an ILEC – namely, Verizon Communications Inc. (VZ) – tries to shut down any loop on which competitive service providers depend. The group, California Association of Competitive Telecommunications Companies, or CALTEL, already has the ear of the state’s public utilities commission. And CALTEL planned to introduce a resolution to legislators by month’s end; the hope is to build alliances now so when the time comes for a fight, member companies have the backing of influential policy makers.
That a large state-level organization is taking the lead on the long-simmering matter of copper retirement marks a shift in lobbying power for CLECs. And that stands to remain the case as long as the FCC stays focused on the digital TV transition, helping distribute broadband funds from the economic stimulus package, gathering comment on video competition and more. Still, that doesn’t mean state leaders are adopting CALTEL requests for tougher ILEC regulation without question. In fact, the California Public Utilities Commission (PUC) recently rejected CALTEL’s call for more stringent rules on copper retirements, only two of which have happened in California – one state-mandated and the other affecting zero CLECs. There’s not enough activity to merit more lawmaking, commissioners ruled. However, Bell companies must “provide notice and negotiate in good faith with...CLECs interested in buying or leasing copper facilities before retiring those assets,” they wrote in a Nov. 6, 2008 notice.
That’s really all CLECs can ask at this point, since the prospect of copper loop retirement looms more hypothetical than substantial.
‘Not At All Negative’
“The PUC decision is not at all negative,” said Nancy Lubamersky, vice president of public policy and strategic initiatives for TelePacific Communications. The CLEC is among the most active on the copper retirement matter. “It may have been too early to request additional regulation.”
Indeed, the PUC did note that if CLECs can show there’s a real and impending threat, commissioners would reconsider their position. Lubamersky said she welcomes that approach.
“I believe the CLEC community can be assured of continued access to copper,” she said, adding that’s especially true now that the federal government is disbursing grants to companies that will deploy broadband over copper. So, having the attention of California lawmakers just boosts the chances of success if – or when – the time comes to fight mass retirements.
“The increased awareness is key. And without exception, we are getting the right support and interest,” Lubamersky said.
