08/30/2018

Court Upholds FCC BDS Remake

A federal appeals court has upheld the majority of the FCC's 2017 Business Data Services (BDS) revamp.

The NCTA--The Internet & Television Association had backed the BDS remake under FCC chair Ajit Pai, who had not supported the previous approach adopted under chairman Tom Wheeler. 

In a party line vote, the FCC Republican majority on April 20, 2017, adopted a BDS Report and Order, under Pai, declaring the BDS market generally competitive—a distinct departure from Wheeler's more regulatory proposal, which had concluded the market was insufficiently competitive. The Pai BDS approach deregulated the rates incumbent providers can charge for services like wireless backhaul, credit card readers, ATMs and institutional hookups to schools and libraries.

“It’s a good day for forward-thinking regulation," said Pai of the court decision. "Here’s why: Last year, based on a thorough analysis of a massive amount of data, the Commission adopted a ‘competitive market test’ to determine where regulation of business data services was still needed and where it would impede investment, innovation, and competition. I’m pleased that the Eighth Circuit upheld that test and the detariffing and deregulation of last-mile business data services that the test suggested. Indeed, the court recognized that the Commission had proposed ‘large scale de-regulation’ and repeatedly affirmed the Commission’s policy judgments as reasonable."