Regulatory News - Verison Business Broadband Classification

FCC to Permit Verizon to Classify its Business Broadband Services as "Information Services"

On March 20, the FCC decided not to act on a December 2004 request from Verizon to classify its business broadband services as "Information Services." The four commissioners were evenly split on the issue and, according to FCC rules, failure to deny a forbearance request is the same a granting the request. The two Republican Commissioners, Martin and Tate, supported the request with little comment; the two Democratic Commissioners, Copps and Adelstein strongly opposed it. Small telecommunications companies were disappointed by the decision. AT&T announced plans to seek a similar ruling.

DSL was classified as an Information Service in August 2005.

The Verizon request was that its business broadband services be regulated under Title I of the 1996 Telecommunications Act which governs Information Services, rather than Title II, which governs Telecommunications Services. Title I regulations are generally considered much lighter than those in Title II. This decision and the DSL decision are arguably consistent with the 2005 Supreme Court decision in the "Brand X" case that affirmed an FCC decision to classify broadband services by cable television as Information Services.

Posted March 23, 2006