The FCC is set to end price regulations on legacy business data services provided by incumbent local exchange carriers. This deregulation affects DS-1 and DS-3 circuits, enabling them to compete with modern packet-based services. The FCC's recent actions are part of an initiative to eliminate outdated regulations. Rate regulation will be removed for both larger price cap carriers and smaller rural rate-of-return carriers, with a 24-month transition for tariffing before mandatory detariffing of these services. Updates to competitive market tests will also be considered in light of current market developments.
The FCC is poised to end price regulations on legacy business data services, including DS-1 and DS-3 circuits, allowing them to compete with newer services.
This move aims to place legacy services—used for schools and businesses—on equal footing with modern packet-based business data services.
Under the new initiative, carriers will have a 24-month transition period for tariffing BDS prior to mandatory detariffing, which simplifies pricing regulations.
The FCC's order waives the competitive market test update requirement until January 2026 while reviewing the current rulemaking record.
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