FTTH Council Weighs In Against Proposed New Regulations on Broadband Service Providers

The FCC's "Third Way" proposal would change how the agency oversees broadband service from relatively light-touch Title I regulation to more intensive Title II common carrier regulation. As a result, the Council argued that reclassification "would measurably increase the risk associated with investing in newly-regulated markets where regulatory requirements are uncertain and where proposed regulations are certain to be subject to many years of litigation. The mandated sale of wholesale access on FTTH networks and increased risk of investment would undermine the economic rationale for FTTH deployment, leading to substantially lower levels of investment in the technology than would occur if there were no regulatory change."

To support its position, the Council provided evidence showing that real-world experiences with open access FTTH networks have not proven to be economically self-sustaining through customer revenues alone. The Council also cited to a new study by the consulting firm CSMG showing that the number of households that can be served economically by FTTH networks would be reduced by about half under the circumstances envisioned in the proposed regulatory changes.

Click here to download the filing.

The Council noted that "the tremendous growth of FTTH networks over the past decade owes much to the FCC and its key deregulatory decisions, which removed burdens to share network components or services with entities that had not incurred the major risk of constructing infrastructure."

FTTH networks now pass more than 18 million homes in the U.S. and are connected to six million subscriber households.

Yet, the Council said, FTTH networks are still accessible to only 15 percent of homes in the U.S., largely because "deploying FTTH networks continues to be very capital-intensive with a long payback period. In such an environment, imposing any additional regulatory burdens would only increase the challenges to investment and act as a drag on growth."

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. The Council organizes North America's largest annual FTTH event, theFTTH Conference & Expo, to be held September 12 - 16, 2010 in Las Vegas. More information about the Council can be found at www.ftthcouncil.org.


Media Contact:

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