AT&T tells FCC its menace to halt fiber rollout is just for new tasks
AT&T is not backing down from its menace to halt its fiber rollout, which was a not-so-delicate jab at President Obama’s professional-internet neutrality / Title II feedback earlier this month. Following an FCC inquiry about that announcement, AT&T stated in a letter at this time that it is nonetheless going to maneuver ahead with present fiber commitments — it is simply not going to make any new plans. AT&T’s in a little bit of a difficult spot: It already agreed to convey fiber to 2 million houses as a part of its large $forty eight.5 billion Direct TV acquisition (which continues to be underneath regulatory assessment). However, nicely, new regulation dangerous! “AT&T merely can’t consider further funding past its present commitments till the regulatory remedy of broadband service is clarified,” Robert Quinn, the corporate’s senior vice chairman of federal regulatory, wrote within the letter. Take a look at AT&T’s full response to the FCC under.
Re: Purposes of AT&T Inc. and DIRECTV for Consent to Assign or TransferControl of Licenses and Authorizations, MB Docket No. 14-ninety
Pricey Ms. Dortch: AT&T Inc. (“AT&T”) hereby responds to the Fee letter dated November 14,2014.
When AT&T introduced its acquisition of DIRECTV in Might 2014, we additionally introduced our dedication to reinforce and increase excessive-velocity broadband service to a minimum of 15 million buyer places, principally in rural areas, using a mixture of applied sciences similar to fiber to the premises (“FTTP”) and glued wi-fi native loop capabilities. “This new dedication, to be accomplished inside 4 years after shut, is on prime of the fiber and Venture VIP broadband enlargement plans” that we had introduced previous to the DIRECTV transaction.
The premise of the Fee’s November 14 Letter is wrong. AT&T isn’t limiting our FTTP deployment to 2 million houses. On the contrary, AT&T nonetheless plans to finish the main initiative we introduced in April to broaden our extremely-quick GigaPower fiber community in 25 main metropolitan areas nationwide, together with 21 new main metropolitan areas. As well as, as AT&T has described to the synergies created by our DIRECTV transaction will permit us to increase our GigaPower service to no less than 2 million further buyer places, past these introduced in April, inside 4 years after shut.
On the similar time, President Obama’s proposal in early November to manage the whole Web underneath guidelines from the Nineteen Thirties injects vital uncertainty into the economics underlying our funding selections. Whereas we now have reiterated that we’ll stand by the commitments described above, this uncertainty makes it prudent to pause consideration of any additional investments – past these mentioned above – to convey superior broadband networks to much more buyer places, together with further upgrades of present DSL and IPDSL strains, that could be possible sooner or later underneath a extra secure and predictable regulatory regime. To be clear, AT&T has not said that the President’s proposal would render all of those places unprofitable. Somewhat, AT&T merely can’t consider further funding past its present commitments till the regulatory remedy of broadband service is clarified.
Accordingly, AT&T responds to Requests (a)-(c) of the Fee’s November 14 Letter as follows:
With respect to Requests (a) and (b), we refer the Fee to our response to FCC Info Request Nos. sixty one and fifty six.n.5 These responses describe the entire variety of buyer places to which AT&T at present plans to deploy FTTP based mostly on pre-transaction economics, in addition to the extra buyer places to which AT&T has decided it is going to be economically viable to succeed in because of the merger-particular value financial savings and synergies described in these proceedings.
In additional response to Request (a), the hooked up chart offers, by DMA inside AT&T’s 21-state wireline footprint, the variety of buyer places to which AT&T has deployed FTTP and Fiber-to-the-Node (“FTTN”) applied sciences as of October 2014 and the variety of further buyer places to which AT&T at present plans to deploy FTTN.
As a result of Request (c) incorrectly assumes that AT&T is limiting its deployment of fiber to 2 million houses, there are not any paperwork aware of Request (c)
Pursuant to the Second Amended Modified Joint Protecting Order8 and the directions set forth within the November 14 Letter and the FCC’s Info and Knowledge Requests dated September 9, 2014 on this continuing, AT&T is submitting herewith, by way of ECFS, this redacted public model. An unredacted Stamped Extremely Confidential copy of this submission is being delivered to your workplace. Further copies of the unredacted submission are being delivered to the Fee employees beneath separate cowl.
Please contact me at (202) 457-3851 if in case you have any questions. Thanks on your help.
Respectfully submitted, Robert W. Quinn, Jr. Sr. VP-Federal Regulatory and Chief Privateness Officer