AT&T Corp., MCI and the biggest local phone companies are entering into mediated discussions with the FCC this weekend to negotiate wholesale rates, trade groups said on Friday, grousing they have been prohibited from participating in the discussions. The trade groups represent a throng of communications providers.
“CompTel/ASCENT believes that industry negotiations should include all parties that will be impacted by the results. These critical talks should not take place in secret, with only a select few powerful companies at the table,” said H. Russell Frisby Jr., CEO of CompTel/ASCENT. “There are hundreds of smaller carriers that should not be left out of this critical process. Our member companies have been attempting to negotiate in good faith with the incumbent telcos for several weeks now, only to be faced with “take-it-or-leave-it” offers and other strong-arm tactics.”
Verizon Communications Inc. spokesman Larry Plumb said the talks do not deter the No. 1 local phone company from continuing negotiations with all its wholesale customers.
“Verizon also remains engaged in negotiations with over 50 wholesale customers (a.k.a. CLECs) under our Wholesale Advantage framework. Our participation in the FCC initiative in no way deters us from continuing our efforts with all wholesale customers who wish to work with us to reach agreements,” Plumb said.
John Windhausen, Jr., president of the Association for Local Telecommunications Services, was as critical as CompTel/ASCENT. "ALTS is stunned that the FCC would permit the four regional Bell operating companies to refuse to negotiate with ALTS' facilities-based companies,” he said. “ALTS asked to participate in these negotiations, and several ALTS executives said they would come to D.C. tomorrow to participate. We were extremely disappointed to learn earlier this afternoon that the RBOCs objected to our participation, and that the FCC decided to bow to the RBOCs' request.”
Federal rules that allow AT&T and other phone companies to lease the Bells networks at government-mandated rates are set to expire June 16 unless a federal appeals court grants requests to delay when its order takes effect.
The federal government and phone companies might ask the U.S. Supreme Court to review the contested rules. The Office of the Solicitor General, the agency representing the federal government before the highest court, has not made a decision as to whether it will seek an appeal. Phone companies and the FCC could still request a review, but the Supreme Court would be less likely to hear the case without the support of the Solicitor General, sources say.
