TIA Strongly Applauds FCC's Deregulation of New Broadband Facilities.

Business Editors/High-Tech Writers

ARLINGTON, Va.--(BUSINESS WIRE)--Aug. 21, 2003

Telecommunications Industry Association (TIA) President Matthew J. Flanigan made the following statement today in response to the Federal Communications Commission's (FCC) release of the Report and Order in the Triennial Review proceeding concerning incumbent local exchange carriers' (ILECs) network unbundling obligations:

"TIA is elated that this order at last has been released. While clearly no one is happy about the unnecessarily long delay after the February vote, the most important thing is that the FCC got it right in deregulating new, last-mile broadband facilities on a national basis. In fact, the broadband deregulation portion of the order already is making a significant contribution to the beginnings of a turnaround in the telecommunications industry. The FCC has made a national decision that recognizes, as the law requires and the courts have observed, the link between existing competition, deregulation and investment in advanced communications networks.

"As we maintained from the start in this proceeding, this type of deregulation of broadband-capable facilities gives ILECs and other facilities-based carriers the opportunity to invest in new technologies and aggressively compete in the broadband market. Consumers will be the ultimate beneficiaries of the adoption of the proposals from TIA and the High Tech Broadband Coalition because it will result in high-quality, widespread and affordable broadband services.

"While we look forward to a closer examination of the order, the commission has taken a major step to remove serious economic disincentives to nationwide investment in telecommunications networks. The substantially reduced threat of regulatory interference will spur investment in new network facilities. We believe that over time ILECs are likely to increase their commitment to invest capital to more effectively compete with cable modem providers. In some situations, this may mean extending their digital subscriber line (DSL) networks to reach more potential customers and improving the quality of these offerings. But looking ahead, it also now affords a significantly improved opportunity and incentive to deploy fiber-to-the-home (FTTH) or fiber-to-the-premise (FTTP) systems. In fact, recent steps taken by the large ILECs to move in that direction are well known.

"For more than four years, TIA has been urging the commission to move to this type of framework that rewards the necessary investment in new and innovative technologies that will make broadband services available more widely and to make the supporting networks more robust.

"Again, I applaud and thank the commissioners and their staff for taking bold and decisive steps needed to foster increased broadband investment, innovation and facilities-based competition."

The Telecommunications Industry Association (TIA) is the leading trade organization serving the communications and IT industry, with proven strengths in standards development, domestic and international public policy, and trade shows. Through its worldwide activities, TIA facilitates business development opportunities and a competitive market environment. The association provides a forum for its member companies, the manufacturers and suppliers of products and services used in global communications. TIA represents the communications sector of the Electronic Industries Alliance (EIA). Visit us at http://www.tiaonline.org.