FCC Issues Tariff Investigation Order and NPRM Which Proposes to Substantially Revise and Expand the Regulation of Business Data Services – May 25, 2016

Womble Carlyle Sandridge & Rice

Description

Should BDS providers affected by proposed anchor or benchmark pricing be required to disclose their generally available rates, terms and conditions? How should the disclosure of rates be implemented? Is posting on a carrier website sufficient? Terms and Conditions I. The Commission asks how should IP migration provisions in ILEC pricing plans be treated? • Are IP migration provisions in pricing plans potentially unlawful tying arrangements or do they instead encourage migration to Ethernet and other IP services to facilitate the technology transition? • Should customers be allowed a “fresh look” to reevaluate their tariff commitments or to adapt their purchasing agreements? II. Other Terms and Conditions The Commission also seeks comment on the reported use by incumbent LECs in their tariff pricing plans of: (1) percentage commitments (based on a purchaser’s historical or existing levels of purchase); (2) term commitments; (3) upper percentage thresholds for premature disconnections and increased usage above a minimum volume commitment at discounted pricing; (4) overage penalties; and (5) automatic renewal and evergreen provisions. For example, should a 7 year tariff pricing term be automatically renewed if the customer fails to give notice of its decision within a two month extension period? Should automatic reversion to undiscounted month-to-month pricing be permitted? Do they force customers to be locked up into another long term pricing plan to avoid a potentially significant price increase? The FCC seeks comment on these terms and conditions. Comments are due by June 28, 2016. Reply Comments are due July 26, 2016. Contact Information If you have any questions about this proceeding please contact Doug Bonner at DBonner@wcsr.com or 202.857.4428, Mark Palchick at MPalchick@wcsr.com or 202.857.4411 or Marty Stern at MStern@wcsr.com or 202.857.4417 or any member of the firm’s Telecommunications Group. __________________ Womble Carlyle client alerts are intended to provide general information about significant legal developments and should not be construed as legal advice regarding any specific facts and circumstances, nor should they be construed as advertisements for legal services. . WCSR 36334426v1 11 .