TDS disagrees with AT&T, says it's not asking FCC to reimpose price cap on Ethernet services

TDS Telecom's competitive local exchange carrier arm, TDS Metrocom, says that AT&T's argument that it is asking the FCC to reimpose cap regulation on Ethernet services or set specific Ethernet rates is false.

Citing sections 202 and 251 of the 1996 Telecommunications Act, TDS Metrocom is requesting that "the Commission require RBOCs to sell wholesale Ethernet at retail rates minus costs that they avoid when selling at wholesale."

The CLEC added the FCC does not have reverse forbearance on Ethernet services, but rather should "reiterate that ILECs must comply with this longstanding requirement upon the request of a CLEC."

Although TDS has a large network of its own facilities, the service provider rents special access facilities from AT&T (NYSE: T) and other ILECs to satisfy business service requests in areas where it can't cost effectively build out fiber facilities.

TDS Metrocom can't reveal the prices it pays publicly on wholesale Ethernet rates because the ILECs require them to sign confidentiality agreements.

However, Matthew Loch, TDS Metrocom's VP of sales, said in the filing that the RBOC wholesale rates offered to TDS' competitive local exchange carrier are typically higher than the RBOC retail rates.

The service provider rents special access facilities from AT&T and other ILECs like Verizon (NYSE: VZ) to satisfy business service requests in areas where it can't cost effectively build out fiber facilities.

TDS has taken three-pronged approach to lighting business fiber. This approach includes building out its own fiber, pre-building fiber routes, and renting facilities from ILECs like AT&T and Verizon.

For more:
- see the FCC filing (PDF)

Related articles:
TDS' CLEC business faces price squeeze from the ILECs' wholesale Ethernet regime
TDS takes three-pronged approach to lighting business fiber
TDS threatens Time Warner Cable in Southeastern Wisconsin with 1 Gbps launch plans
TDS carves out 1 Gbps niche in the rural FTTP market

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