Pro-Consumer Democrats Urge FCC to Reform Business Data Services Market

Aug 5, 2016 Issues: Telecommunications and the Internet
Washington, DC – U.S. Representative Mike Doyle (PA-14) announced today that he and other House Democrats had written to their Democratic colleagues in the House urging them to support swift action by the Federal Communications Commission to reform the current regulations governing the market for Business Data Services (BDS).
 
Doyle and the other Democratic Members who signed the “Dear Colleague” letter – Representatives Anna Eshoo (CA-18), Doris Matsui (CA-6), and Peter Welch (VT-all) – all serve on the House Energy and Commerce Committee’s Subcomittee on Communications and Technology. They have been working for many years to promote FCC regulatory reforms that benefit consumers and innovators through better telecommunications services at lower costs – primarily by promoting greater innovation and more competitive markets for telecommunications services.
 
The letter states that: "Business Data Services make up a $45 billion a year market that provides connectivity for wireless broadband services and connects anchor institutions such as schools, hospitals, and public safety responders, and businesses large and small."
 
Studies have shown that the failure of the current regulatory framework has cost the U.S. economy $150 billion over the last 5 years.  These costs are overwhelmingly borne by small businesses and consumers. 
 
The FCC has conducted extensive research on the Business Data Services market over a number of years, and in April FCC Chairman Wheeler announced a proposal for reforming the Commission’s current BDS regulations by the end of the year. 
 
The letter’s authors urged their colleagues to “support the FCC’s evidence-based efforts to unleash benefits for America’s businesses and consumers and to lead the world in next generation communications infrastructure.”
 
The full text of the letter follows below. 
 

           FCC Should Act Without Delay to Reform the Business Data Services Market

                                                                     August 5, 2106
 
Dear Colleague,
 
We write to you today in support of the Federal Communications Commission’s (FCC) efforts to reform the Business Data Services (BDS) market.  We have championed regulatory reform of this critical component of our nation’s telecommunications infrastructure. 
 
In April, the FCC jumpstarted the decades-long BDS proceeding with a proposal based on the most comprehensive data collection effort ever undertaken by the Commission.  FCC Chairman Tom Wheeler has made it an important goal to adopt these updated rules by the end of this year, and we urge him to complete this important Democratic priority without delay. 
 
Business Data Services make up a $45 billion a year market that provides connectivity for wireless broadband services and connects anchor institutions such as schools, hospitals, and public safety responders, and businesses large and small.
 
Studies have shown that the failure of the current regulatory framework has cost the U.S. economy $150 billion over the last 5 years.  These costs are overwhelmingly borne by small businesses and consumers. 
 
Chairman Wheeler has stated that reform of this market is essential for promoting BDS competition, benefiting individual and business consumers, and unleashing the true potential of next generation wireless services.  During the most recent Energy & Commerce Committee FCC Oversight Hearing in July, he testified that BDS reform is not only important for competition today, but necessary to meet our national priority of leading the world in 5G wireless services.
 
The time has come for the FCC to use the extensive data collected over the last several years to undertake competition-based reform of the BDS market in urban and rural areas alike.  We commend Chairman Wheeler for his leadership on this important issue.
 
After more than a decade of study, we strongly urge you to support the FCC’s evidence-based efforts to unleash benefits for America’s businesses and consumers and to lead the world in next generation communications infrastructure. 
 
Sincerely,
 
Mike Doyle
Member of Congress
 
Anna Eshoo
Ranking Member, Subcommittee on Communications and Technology
 
Doris Matsui
Member of Congress
 
Peter Welch
Member of Congress
 
 
                                                                             ###