Two trade groups today proposed a framework to protect the interests of phone companies -- large and small -- negotiating rates with Verizon Communications Inc. and other regional Bells to lease their networks.
While acknowledging non-disclosure agreements “can be a reasonable, effective” way to facilitate negotiations between two parties, the groups promoted a framework designed to make the talks as open as possible, including a provision that would allow the companies to update government officials on the progress of negotiations.
“By encouraging a transparent process that is not impacted by overly restrictive non-disclosure agreements, it is our hope that the telecommunications industry can overcome many of the obstacles that have hampered the success of past negotiations,” said H. Russell Frisby, Jr., CEO of the CompTel/ASCENT Alliance. The Association for Local Telecommunications Services (ALTS) collaborated with the CompTel/ASCENT Alliance to propose the framework.
The Washington D.C.-based trade organizations also said the non-disclosure agreements should not preclude companies from sharing relevant information, including the full terms of written proposals, with federal or state officials, or regulators, so long as it may not be admitted or used in subsequent regulatory proceedings or litigation.
The local phone industry is at a crossroads after a federal appeals court threw out FCC rules March 2. The controversial regulations preserved local phone companies’ right to lease the Bell networks at government-mandated rates unless state regulators found there was adequate competition.
Last week, all five FCC commissioners called on local phone companies to enter commercial negotiations with the four regional Bells: BellSouth Corp., SBC Communications Inc., Qwest Communications International Inc. and Verizon.
Over the weekend, SBC announced reaching a seven-year agreement throughout its 13-state territory to lease its network to Sage Telecom.
“This agreement illustrates that searching for a compromise is a worthwhile endeavor,” FCC commissioner Kathleen Abernathy said in a statement released Monday. “I hope that incumbent LECS and competitors will soon reach additional agreements that narrow the range of disputed issues and eliminate the need for continued litigation.”
FCC rules are set to be vacated in early May, but the federal appeals court may grant an extension of a stay for 45 days. The Supreme Court also may agree to review the contested rules if the federal government seeks an appeal. The CompTel/ASCENT Alliance and ALTS said the prospect of negotiations should not be used as a justification for an entity not seeking an appeal before the Supreme Court.
