RHK: Divided FCC Upholds UNE; RBOCs Fight Back

RHK, a leading telecommunications research and advisory services firm, recently commented on the FCCs August 21st order. Dr John Ryan, Founder and Chief Analyst of the firm, as well as analysts Teresa Mastrangelo, Ken Twist, Nitin Shah, Ron Kline, and John Coons, commented that RHK continues to expect that the Order and the coincident RBOC RFP will have a modest impact on short-term deployments (within the next 18 months); however, we also see that the Order is likely to shape a large part of the broadband loop activities of telcos and PTTs worldwide." RHK also noted that the FCC order was created out of compromise, but is meant to provide rules that will guide broadband access progression for years to come.

Key analysis in the RHK report, entitled Ryan Perspective: Divided FCC Upholds UNE; RBOCs Fight Back," included the following --

Litigation on the legality of the FCCs definitions of impairment has begun. The immaturity of alternative bases of intermodal competition is acknowledged.Transport unbundling is capped at OC-12--as opposed to OC-192 previously. Voice switching--especially UNE-P--is largely sustained, except for bundles of 4 or more DS0s."

In addition, RHKs analysis covered the FCCs objectives, what must be unbundled and what is exempt, and the result of the revised rules on TELRIC. Overall, RHK states, the short-term effects of the FCC ruling will have little consequence in service providers behavior. However, if the Orders rules remain in effect over the long term, RBOCs could find legacy infrastructure the purview of their wholesale operations - thereby making the playing field more level for the IXCs and CLECs.

For more information regarding this report, please contact RHK Client Services at clientservices@RHK.com.

About RHK --
For over 12 years, RHK has been the industry's leader in providing advice, analysis, and research to telecommunications companies. RHK offers continuous research and strategic consulting in the following areas:
·   Technology trends and dynamics
·   Corporate strategy
·   Product and market strategies
·   Network architecture
·   Telecom economics
·   Market intelligence and forecasts
·   Global and regional analysis
RHKs first-class international team offers a rigorous understanding of telecom networks, unbiased analysis, a strategic perspective, and real-world operating experience to meet its clients' business challenges. Visit www.rhk.com, or email info@rhk.com, for more information.