FierceWirelessFierceWirelessEuropeFierceDeveloperFierceMobileContentFierceBroadbandWirelessFierceVoIPFierceIPTVFierceTelecomFierceOnlineVideo

Free Newsletter

About | View Sample | Privacy

No Choke Points coalition turns up the heat in 'special access' fee battle

Tools

The rhetoric is flying hot and heavy as a new coalition spearheaded by Sprint Nextel and T-Mobile looks to put a cap on the wholesale access fees they pay companies like AT&T and Verizon for access to broadband lines.

The No Choke Points coalition says the fees—which have been a contentious point between the haves and have-nots for years--are stifling capex outlays and sidetracking the Obama administration’s goal of expanding broadband across the United States. It also claims the access fees cost businesses and consumers some $10 billion a year and reap the telcos profit margins that exceed 100 percent.

Not so, says AT&T, which responded to the coalition’s statements with a broadside aimed squarely at Sprint and its continuing struggle to make sense of its merger with Nextel. AT&T said the company’s appeal to cap the special access fees was a “cynical attempt to obtain government-mandated reductions ... in order to alleviate some of the short-term financial and business pressures."

AT&T, Verizon, Qwest, Embarq and Windstream contend that a cap on access fees would deter other companies from building out their own Internet connections, thus hamstringing deployment further. A USTelecom statement says the coalition is looking to “minimize their own investment in U.S. broadband.”

The "No Choke Points" coalition's members also include Clearwire, tw telecom, Cbeyond, Covad Communications, Group One Communications and XO Communications.

For more:
- see this Wall Street Journal article

Related articles
Broadband stimulus package restarts special access rates fight    
Economic stimulus package: $6 billion for broadband
Martin folds; FCC telecom overhaul vote delayed

Bookmark and Share
Get Your FREE FierceTelecom Email Newsletter:

Be the first to comment
More stories about Covad Communications Group   Cbeyond   AT&T   Xo Communications   Windstream   T Mobile   Sprint Nextel   special access rates   Internet Connections   Embarq   Economic Stimulus Package  

Comments

Post new comment

The content of this field is kept private and will not be shown publicly.

More information about formatting options

To combat spam, please enter the code in the image.