New Legal Challenges in a Converged Telecom Industry

1
New Legal Challenges in a Converged Telecom
Industry

• November 8, 2004
• San Antonio, Texas
• Greg Whiteaker
• Bennet Bennet, PLLC
• www.bennetlaw.com

2
Introduction

• How does convergence impact the FCC landscape?
• Representing clients with converged interests

3
New Legal Challenges

• Convergence
• Of services
• Of networks
• Of service providers

4
New Legal Challenges

• Move from the dedicated network model to the
  consumer electronics model
• Intelligent networks, personalization,
  customization (possible focus on on-demand
  services)
• The product is not voice and the metric is not
  minutes. R. Pepper, FCC OSP
• Pigeon hole regulation no longer makes much sense

5
New Legal Challenges

• FCC Regulatory focus on
• Encouraging consumer choice and competition
  (e.g., LNP)
• Consumer Protection Issues
• Post-hoc remedies rather than antecedent
  restrictions
• Enforcement issues
• Anti-trust analysis

6
New Legal Challenges

• Over reliance on consumer choice w/o cost
  benefit
• No cost benefit consideration of LNP
• VOIP is inexpensive because it uses the
  existing broadband network
• Deregulation often isnt
• Elimination of spectrum cap, but
• Increased anti-trust analysis

7
New Legal Challenges

• FCC not expert at anti-trust issues
• FCC faces many more players in the mix

8
New Legal Challenges

• Increased uncertainty
• Need to advise clients based on threat of
  enforcement
• Enforcement actions not subject to same level of
  review
• E.g., CenturyTel LNP case
• Regulatory void
• Increased reliance on Quasi-government bodies
• NANC, NANPA, PCIA
• No procedures for seeking remedies
• Need for negotiated resolutions

9
New Legal Challenges

• Previously unimagined competition and loss of
  revenue
• Clients have converged interests internal
  conflict

10
New Legal Challenges

• Many companies have internal conflict struggle
  with identitye.g.,
• USF/CETC
• LNP
• Interconnection/Intercarrier compensation
• VOIP

11
New Legal Challenges

• LEC affiliates seeking wireless ETC
• Companies initially resistant
• Wireless affiliates seeking ETC in rural service
  area
• Wireless companies were not first movers
• Forced by competitive pressures
• Competitors seeking or receiving
• Loss of roaming revenue
• Parent LECs often object

12
New Legal Challenges

• BB primarily tasked with representing the
  wireless side of the house
• Strategic planningnew sources of revenue
• Seek industry compromise and solutions
• E.g., RTA Interim USF Plan
• Recognizes need to limit growth of fund
• Opposes primary line limitation

13
New Legal Challenges

• VOIP
• Voice is just an application
• Internet Voice will unleash a torrent of
  innovative products and services, from many more
  sources than we are accustomed to, if we let it.
  M. Powell
• Low barriers to entry so companies will spring up
  like wild flowersor weeds!

14
New Legal Challenges

• VOIP
• RTCs already see the prospect of VOIP competition
  and revenue loss
• RTC will have to innovate and respond

15
New Legal Challenges in a Converged Telecom
Industry

• Questions
• Greg Whiteaker
• Bennet Bennet, PLLC
• www.bennetlaw.com