The sixteen day government shutdown has come and gone with only minor impacts on major telecom regulation. The special access data request may be slowed for a couple of weeks as the Commission continues to await approval from the Office of Management and Budget (OMB). Since that agency was also closed for more than two weeks, it is expected that approval might be somewhat delayed. OMB approval is still expected before the end of the year with the data due early next year.

Two proceedings that will not be affected by the government shutdown are probably the two most important. The upcoming oral argument on the appeals of the Commission’s November 2011 Inter-Carrier Compensation Order will go ahead as scheduled on November 19, 2013 at the 10^th Circuit Court in Denver. And, a decision by the D.C. Circuit Court on Verizon’s appeal of the Commission’s Net Neutrality Order will go a long way in determining the future of federal telecom regulation.

If the Denver Courts side with the Commission as many industry observers expect, the march to bill-and-keep for terminating access charges will continue as scheduled. However, if the Court rejects the FCC’s Order it could once again result in state commissions back in charge of intrastate access, presumably with many carriers seeking immediate rate increases. Or, more likely, the Court could reject the Order, but keep it in place while giving the FCC another opportunity to legally defend its actions. Check back for a complete summary of the oral argument next month.

A D.C. Circuit Court decision on Net Neutrality is expected within the next few months. Most of the industry expects at least part of the Order to be rejected. The decision will help determine how much regulatory control the Commission will have over broadband providers and the Internet. It may force the Commission to finally try to categorize broadband Internet access as a telecommunications service. Such a categorization would enable the Commission to maximize its control over broadband rates and access to services, but could lead to political objections.

More problematic to FCC progress at the moment is the fact that two new commissioners have just been confirmed to the Commission – incoming Chairman Tom Wheeler who is a Democrat and incoming Republican Commissioner Michael O’Rielly. If history is any guide, these individuals will experience the lengthy learning curve all new commissioners face regardless of preexisting industry knowledge. 

With three Democrats and two Republicans, the FCC Democratic majority is maintained. Previous statements from Chairman Wheeler indicate that he is supportive of new regulations in the broadband telecom world. Thus, do not be surprised that even if the D.C. Circuit Court rejects the FCC’s Net Neutrality Order, the Commission will seek new ways to regulate broadband providers.

By Andrew Regitsky, President, Regitsky & Associates