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The unbundled elements included everything from the interface between the customer s inside wire and the outside plant to the switching and multiplexing elements located within the CO and embedded throughout the outside plant facilities. The elements are as follows:
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Network Interface Device (NID): Physical interface between the local service provider and the customer s inside wiring Loop Distribution: Facilities that connect NID to feeder distribution interface Loop Feeder: Facilities that connect loop distribution to the local switch Local Switch: Switch that initiates and terminates local calls Tandem Switch: Switch that interfaces between local, longdistance networks Common Transport: Transmission facilities used by multiple carriers Dedicated Transport: Facilities used exclusively by a single carrier Service Control Point: Database used to provision Caller ID-based enhanced and supplementary services Signaling Transfer Point: Packet switch for signaling communication Signaling Link Transport: Facilities between signaling points Concentrator/Multiplexer: All forms of carrier systems Operator Systems and Operations Support Systems: Operator services, directory assistance, and element and network management systems for maintaining the health and welfare of the network
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In the early months of 2003, the FCC dramatically rewrote the basics of telecom regulation. Following the 2003 Triennial Review that concluded in February of that year, the FCC released a series of high-impact decisions that pleased everyone and no one. In an effort to resolve the question of which UNEs the ILECs had to make available to their competitors, the FCC essentially turned the issue over to the states for local resolution. They also ruled that ILECs no
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longer had to provide switching as an unbundled element to CLECs for business customers unless state regulatory agencies could prove within 90 days of the order that this resulted in an overly onerous impairment to their ability to do business. In the residence market, the FCC outlined specific criteria that each state had to use to determine whether CLECs were impaired without
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The Byzantine World of Telecom Regulation
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unbundled switching. They also concluded that ILECs did not have to provide competitors with SONET-level transport services (OC-N), but shifted responsibility to the states to determine whether ILECs should be required to unbundle dark fiber and DS3 transport on a route-byroute basis. For broadband, the FCC s decision was clearer. They ruled that all new broadband buildouts, including both fiber builds and hybrid loops, were exempt from unbundling requirements as well. They also ruled that line sharing would no longer be classified as a UNE, a decision that put considerable pressure on competitive carriers, such as Covad Communications, that rely on line sharing. Apparently, the decisions reached by the Commission were far from universal. Commissioner Kevin Martin was the only member who agreed with the entire order. Chairman Powell and Commissioner Kathleen Abernathy disagreed with the decisions about line sharing and unbundled switching, while Jonathan Adelstein and Michael Copps disagreed with the broadband decision. The feedback from various industry segments about the decisions was, as would be expected, varied. CLECs grudgingly agreed for the most part that it was about as good as it could have been, and could have been far worse. ILECs, on the other hand, saw the decision to turn much of the decision making over to the states as a step in the wrong direction, concluding that it would extend the period of time over which definitive decisions would be made. What we do know is this: While the decisions made by the fragmented FCC were not ideal for all players (how could they possibly be ), they did move the industry forward and shook up the players in a positive way. ILECs now had a renewed incentive to invest in broadband infrastructure, while competitive providers had incentives to invest in alternative technologies such as cable and wireless (both fixed and mobile) in their competitive efforts. DSL rollouts were accelerated, and as penetration climbed, alternative solutions were invoked. So, while the results were not as comfortable as they could be for the industry players, they led to the appropriate marketplace behavior and that s a good thing. Consider the following simple scenario. Regulators, after a great deal of wrangling, remove unbundling requirements, providing the appropriate degree of incentive to incumbent providers to accelerate broadband deployment. ILECs publicly commit to universal broadband (DSL) deployment throughout their operating areas. In response, cable and wireless players accelerate their own rollouts, preparing for the price wars that will inevitably come.
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