Frontier Communications comments on FCC Fact Sheet on Business Data Services
The following statement may be attributed to Frontier Communications President and CEO Dan McCarthy: "Today the FCC released a Fact Sheet outlining the framework of a proposed Order regarding Business Data Services regulation. The Fact Sheet provides clarification regarding proposed reductions in the TDM BDS rates charged by Incumbent Local Exchange Carriers to companies seeking access to their infrastructure and clarifies that Ethernet products and services will not be regulated. In addition, the Fact Sheet clarifies that the FCC does not propose to disrupt existing contracts. While the Fact Sheet indicates less severe rate reductions than proposed by Verizon/INCOMPAS, Frontier continues to oppose these rigid rate changes mandated for all carriers without regard to the resulting impact on smaller price-cap carriers. Frontier projects that these reductions, if implemented on July 1, 2017, would have a revenue impact of approximately $10 million in 2017 and $20 million in 2018 and 2019, with subsequent annual impacts declining. As we have previously stated to the FCC, we intend to mitigate the potential effect of all rate reductions with incremental reductions in our expenses."