A List of Possible Violations by the
FCC of the Regulatory Flexibility
Act. Violation: The FCC has failed to include Customers
(including Small Business Customers) in these
telecom and broadband discussions. Regulatory Capture is Rampant ---The TeleTruth
analysis of the filings with the FCC, shows that
in all of these dockets, the overwhelming
respondents (over 90%) were telephone companies and
their lawyers, or commentors who were paid by a
phone companies.. The Customer is missing from the
discussion, and the FCC is making decisions based
on phone company filings. Violation: The FCC has failed to provide "Common Sense"
language for customers. For the average customer, the FCC documents
might as well be in Aramaic, or Urdic, languages
long forgotten except for obscure scholars. They
were written by lawyers, using archaic descriptions
of telecom legalese minutia and so, like the phone
bill (the other unique telecom artifact that
customers can't understand), the customer is left
without a voice in any of these FCC
proceedings. Violation: The FCC has failed to be proactive for Small
Business Competitor Comments on the IRFA (the
required small business impact analysis) The FCC is required by the Flexibility Act to be
proactive and make sure that those harmed are part
of the process. To date, NO ISP knew about this Act
and the implications or have ever been solicited to
send in comments. Staffers at the Small Business
Administration's Office of Advocacy confirmed that
they never received Comments for the IRPA. Violation: IRFA The FCC has failed to be proactive for
Small Business Customer Comments on the
IRFA The FCC has never done outreach to small
businesses for the IRFA. Violation: In ALL cases the FCC has delivered a
"Boilerplate" analysis which does not satisfy the
law or protect the public interest. Approximately 90% of the FCC analysis is the
exact same material they have been using since the
mid-1990's. Identical sections could be found in
dockets from 1998 through 2002. Violation: The FCC has ignored or left out some
"Classes" of small businesses that will be harmed
in a number of these dockets.-- This includes ISPs
and CLECs. In one Docket, O1-337, which could stop the
Bells from being required to resell their networks
to CLEC competitors for broadband, the ISPs
are NOT mentioned as a class that would be harmed.
Likewise, in the Cable Modem NOI, which would
declare Cable service an information service and
therefore they do not have to resell their
networks, the FCC once again left out the ISPs. Violation: The FCC has failed to accurately assess the
number of small business entities that depend on
these companies, from the small business users to
the small business suppliers. There is no data supplied by the FCC on the
number of small businesses that depend on the
independent ISP and CLEC. According to ISP World
"Of course, 54.2 percent of American's accessing
the Internet and the World Wide Web do so through
thousands of independent ISPs scattered across the
country, which totals some 77.5 million subscribers
nationwide." Violation: The analysis of the number of companies
provided by the FCC that could be impacted is
useless and worthless, including using out of date
and inaccurate data. The FCC starts it's analysis with data about the
market from 1992, and utilizes information for ISPs
from Census data -- compiled in 1996. And in most
of the FCC's analysis you can read ""Although it
seems certain that some of these carriers are not
independently owned and operated, or have more than
1,500 employees, we are unable at this time to
estimate with greater precision the number of these
carriers that would qualify as small business
concerns under SBA's definition." Violation: The FCC failed to perform the proper analysis
of the cost impacts on these companies. The FCC offers no information about the impacts
on these companies, including ISPs and CLECs. They
conclude that their law is good because it will
'avoids placing restrictions on their
operations."--- "The Commission believes that this
would have a positive economic impact on small
entities to the extent that it avoids placing
restrictions on their operations." However, they
may be put out of business if these laws go through
-- which is not mentioned. Violation: The FCC failed to offer useful alternatives
to the proposed rulings. The FCC is thinking of 'eliminating' or
modifying the agreements that give ISPs the rights
to use the phone networks' and the only alternative
would be to have a "negotiated contact.' The FCC
doesn't mention that there have been and currently
are law suits and filings against the Bells for
their current contracts. Violation: The FCC is in violation of not providing an
impact to the small business customers of these
companies. --- "The Chain-of-Choice" In all of these proceedings, the FCC is making
statements about 'the public good" yet it does not
have any comments from the companies who use the
small competitors that may be eliminated. --- The
Chain of Choice is the links between an independent
ISP, CLEC and their customer who all must depend on
using the monopoly networks. Violation: The FCC is in Violation of the IFRA for not
examining the unique services the competitors offer
that the Bells do not. The FCC does not acknowledge anywhere the role
the small ISP and CLEC have had on the growth of
the Internet or Broadband., including numerous
services, such as SDSL or Voice over IP that are
unique to the small competitor. Also, the FCC does
not acknowledge that many independent ISPs and
CLECs have brought the Internet to rural
communities where the phone companies have not
showed up. Violation: The FCC is in violation of the IRFA for not
providing an analysis about the harm to investment,
revenues, jobs, and other tangible and intangible
impacts to the ISP and CLEC market segment, as well
as the number of small business customer
issues. TeleTruth estimates that 1,500 companies are in
jeopardy if these laws goes through, and this will
cause problems for 10-15 million customers. The FCC
has not offered any impact analysis.