On January 31, 2014 the FCC released a Report and Order, Notice of Proposed Rulemaking (NPRM) and Notice of Inquiry (NOI) Docket, 13-5 Technology Transitions officially launching the transition from the current Time Division Multiplexing (TDM) network to one based on Internet Protocol (IP).

To begin the transition, the Commission will conduct a diverse set of experiments and data collection initiatives that will allow it, the industry and the public to evaluate how customers will be affected by this historic technology change and ensure that public safety, ubiquitous and affordable access, competition, and consumer protections continue into the future.  Specifically, the Commission will conduct three types of initiatives:

First, the Commission invites any interested providers to submit detailed proposals to test real-world applications of planned changes in technology that are likely to have tangible effects on consumers. These voluntary service-based experiments will examine the impacts of replacing existing customer services with IP-based alternatives in discrete geographic areas or ways.

The experiments are required to comply with certain fundamental conditions such as preserving 911 service and ensuring essential communications continue during adverse weather conditions and national security crises.   Carriers must demonstrate that their IP networks will maintain universal access for all customers including customers with disabilities.  In addition, competitors must continue to be able to interconnect with these IP networks and current inter-carrier compensation rules must be maintained. 

The initial round of service experiment proposals must be filed with the Commission by February 20, 2014.  Industry comments on the proposals are due on March 21, 2014, while reply comments are due on March 31, 2014.  The Commission intends to choose the service-based experiments by May 31, 2014.

Second, the Commission will conduct targeted experiments and cooperative research to explore the impact of the technology change on universal access for rural customers, including those living on Tribal lands, to ensure that as the network changes they are not left behind.

Third, the Commission begins an initiative to improve data collection to better understand how the technology change is affecting various consumer groups such as those with disabilities.  This will allow the Commission to obtain the consumer prospective, of how the technology change is affecting them.

Unfortunately, these initiatives will not provide immediate help for those carriers currently involved in disputed interconnection negotiations over IP interconnection.  The Commission notes that it will not determine regulatory policy for IP networks or IP interconnection until it conducts these experiments and can analyze the results.  Since that will not occur until at least the latter part of 2014 or more realistically in 2015, we can expect industry interconnection disputes to continue or escalate.  Moreover, we will see more state commissions take unilateral action to resolve IP interconnection disputes, unwilling to continue to wait for the FCC to act.

By Andrew Regitsky, President, Regitsky & Associates