FOR IMMEDIATE RELEASE:			NEWS MEDIA CONTACT:
December 12, 2001					Michael Balmoris 202-418-0253
Email:	mbalmori@fcc.gov


FCC INITIATES PROCEEDING TO EXAMINE REGULATORY TREATMENT OF 
INCUMBENT CARRIERS’ BROADBAND SERVICES

Washington, D.C. – Today, the Federal Communications Commission (FCC) initiated a 
review of the current regulatory requirements for incumbent local exchange carriers’ (LECs) 
broadband telecommunications services.  Incumbent LECs are generally treated as dominant 
carriers; thus they are subject to certain requirements, such as tariff filings and pricing 
requirements.  With today’s action, the Commission seeks to ensure that the proper incentives for 
broadband growth and investment are in place, and to ensure that the Commission’s rules reflect 
the current competitive landscape

	The Notice of Proposed Rulemaking (NPRM) adopted today will seek comment on 
changes, if any, the Commission should make in its traditional regulatory requirements of 
incumbent LECs’ broadband service.  In particular, the item asks:

? What the relevant product and geographic markets should be for broadband services.
? Whether incumbent LECs possess market power in any relevant market.
? Whether dominant carrier safeguards or other regulatory requirements should govern 
incumbent LECs' provision of broadband service.

	Today’s action is one of several proceedings the Commission is initiating to undertake a 
broad review of its competition policies in light of developments in the marketplace, including 
the National Performance Measures NPRM and the Special Access NPRM adopted last month, 
and the UNE Review NPRM also adopted today.  Additionally, the Commission will be 
undertaking a more comprehensive review of its broadband polices in the coming weeks.

-FCC-

Docket No.: CC 01-337

	Action by the Commission December 12, 2001, by Notice of Proposed Rulemaking (FCC 
01-360).  Chairman Powell and Commissioners Abernathy, Copps, and Martin; with Powell and 
Copps issuing separate statements.

Common Carrier Bureau Staff Contact: Alexis Johns at 202-418-1580

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This is an unofficial announcement of Commission action.  Release of the full text of a Commission order
constitutes official action.  See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).