(WASHINGTON) - The Telecommunications Industry Association (TIA), the leading trade association for the information and communications technology (ICT) industry, and the Fiber-to-the-Home (FTTH) Council today jointly filed comments with the Federal Communications Commission (FCC), urging that the Cbeyond Petition to reverse course on long-standing and successful Commission policies concerning fiber unbundling be denied.

The current FCC rules exempt incumbent telephone companies that build all-fiber networks from requirements that they lease their lines to competitors. The two associations said that the this policy, promulgated in 2003, has been responsible for the wave of investment in high-speed, all-fiber networks.

A copy of the filing is available at the FTTH Council website.

TIA and the FTTH Council noted in their comments that the Cbeyond petition fails to address the statutory impairment standard that governs unbundling decisions. Time and again, they said, the Commission has carefully considered unbundling issues in the context of constructing its broadband regulatory regime, weighed the appropriate incentive structures, and has opted for a regime guided by standards that promote broadband investment and deployment.

The associations also noted that broadband providers commit tens of billions of dollars in capital expenditures each year to deploy and upgrade their networks, resulting in dramatic gains in broadband connectivity and adoption. "Our nation's employment and economy are now impacted in no small part by the tremendous levels of broadband investment, availability and connectivity. Yet the petition ignores these facts and instead seeks to turn established and successful Commission precedent on its head," the filing said.

"TIA's 600 member companies manufacture and supply products and services used in the provision of broadband and broadband-enabled applications," said TIA President Grant Seiffert. "If this petition were granted, it would stifle investment in and deployment of broadband networks and would have a negative impact on the vibrant ICT industry. Ultimately, the benefits Americans derive from broadband would be impaired."

"Consumers have an ever-increasing appetite for faster networks that can handle video and other emerging high-bandwidth applications, and the current FCC policy on fiber unbundling has been an essential factor in the enormous gains in FTTH deployment over the past six years," said Joe Savage, President of the FTTH Council. "As bandwidth needs grow, it wouldn't make sense to reverse a policy that has proved effective in helping our industry satisfy America's need for speed."

In the filing, TIA and the FTTH Council asserted that Cbeyond's petition relies on "bald assertions that providers are impaired without access to the packetized capabilities of fiber and hybrid loops, and makes easily refuted assertions regarding the state of fiber deployment over recent years. Further, the Petition is impermissibly based on a specific business plan contemplated by Cbeyond itself and relies on the claim that its need for unbundled facilities arises from the heightened capacity demands imposed by its services. Yet, this argument contravenes the impairment standard's central tenet - namely, that increased capacity needs will give rise to increased revenues and thus render competitive deployment of facilities more feasible, not less."

"The petition also places undue reliance on the flawed Berkman Study, which overlooks the fact that the United States enjoys a multi-platform broadband marketplace that is relatively unique in the world. The Berkman Study also understates the role that public investment has played in other nations while, at the same time, overstating the relationship between unbundling requirements and adoption," the filing said.

About TIA
The Telecommunications Industry Association (TIA) represents the global information and communications technology (ICT) industry through standards development, advocacy, tradeshows, business opportunities, market intelligence and world-wide environmental regulatory analysis. Since 1924, TIA has been enhancing the business environment for broadband, mobile wireless, information technology, networks, cable, satellite and unified communications. Members' products and services empower communications in every industry and market, including healthcare, education, security, public safety, transportation, government, the military, the environment and entertainment.

TIA co-owns the SUPERCOMM® tradeshow and is accredited by the American National Standards Institute (ANSI). Visit tiaonline.org.

TIA's Board of Directors includes senior-level executives from ACS, ADC, ADTRAN, Alcatel-Lucent, ANDA Networks, AttivaCorp, Avaya, Bechtel Communications, Inc., Cisco Systems, Corning Incorporated, Ericsson, Inc., GENBAND, Inc., Graybar, Henkels & McCoy, ILS Technology, Intel Corporation, Intersect, Inc., LGE, Microsoft, Motorola, Nokia Siemens Networks, Nortel, Openwave, Inc., Panasonic Computer Solutions Co., Powerwave Technologies, Qualcomm, Research In Motion, Sumitomo Electric Lightwave Corporation, Tellabs, Tyco Electronics, Ulticom, Inc., and Verari Systems. Advisors to the Board include FAL Associates, Orca Systems and Telcordia Technologies.

About the Fiber-to-the-Home Council

Now in its ninth year, the Fiber-to-the-Home (FTTH) Council is a non-profit association consisting of companies and organizations that deliver video, Internet and/or voice services over high-bandwidth, next-generation, direct fiber optic connections - as well as those involved in planning and building FTTH networks. The Council works to create a cohesive group to share knowledge and build industry consensus on key issues surrounding fiber to the home. Its mission is to educate the public and government officials about FTTH solutions and to promote and accelerate deployment of fiber to the home and the resulting quality of life enhancements such networks make possible. More information about the Council can be found at www.ftthcouncil.org.

Media Contacts:

David St. John
Media Relations
FTTH Council
315.849.3800
media@ftthcouncil.org

Mike Snyder
Telecommunications Industry Association
+1.703.907.7723
msnyder@tiaonline.org