27 August 2003 Boston, MA Lightwave -- On August 21, 2003, the FCC released its long-awaited Triennial Review Order, establishing new rules for unbundling of ILEC network elements in the United States. As anticipated, the Order preserves the unbundled network element platform (UNE-P) for the mass market, subject to review and implementation by state regulators. It grants ILECs significant regulatory relief in broadband unbundling requirements and through the eventual removal of line-sharing obligations.
The Yankee Group report, "Unbundling the FCC's Triennial Review Order," examines the Order and highlights changes since the FCC's February 2003 announcement of new unbundling rules. The report examines the FCC's detailed guidelines for state commissions to implement the new unbundling rules and identifies what the points of stakeholder conflict will be over the coming weeks.
"Key policy changes are the lifting of sunset provisions for the phase-out of UNE-P and the grandfathering provisions for existing line-sharing customers," explains Dianne Northfield, Global Regulatory Strategies program manager. "Add to this the high threshold criteria set for the lifting of incumbents' unbundling obligations, and the message is clear--unbundling will remain a key local market entry strategy for competitors in the United States."
At the same time, the Yankee Group expects continued lobbying from non-ILECs and consumer groups to reinstate broadband unbundling requirements, and ongoing controversy surrounding the removal of ILEC line-sharing obligations. Debate also will focus on the broadband investment incentives and broadband market structure implications of the new rules.
For more information about the report, visit The Yankee Group at www.yankeegroup.com.