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Strategies for Gaining MDU Customers: Navigating Regulations Without Sacrificing Profitability

This case study from the Broadband Wireless World Forum 2001, led by Brent Weingardt, Brian Andrew, and Richard Stern, explores the evolving landscape of competitive access to multiple dwelling units (MDUs). It delves into regulatory changes, new technologies, and the claims of new players in the broadband space. The discussion includes a review of government responses to promote competition, focusing on non-discriminatory access and addressing exclusive contracts. Stakeholders will gain insights into successful strategies for increasing customer base while maintaining profitability.

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Strategies for Gaining MDU Customers: Navigating Regulations Without Sacrificing Profitability

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Presentation Transcript

  1. Broadband Wireless World Forum 2001 Building Access Case Study: Gaining Customers Without Sacrificing Profitability to Building Owners and Managers Brent Weingardt Brian Andrew Richard Stern Tuesday February 20, 2001 2:00 – 3:00pm

  2. Broadband Wireless World Forum 2001 Competitive Access to MTEs/MDUs: The Government Weighs In Brent Weingardt Bennet & Bennet, PLLC 202-371-1500 bweingardt@bennetlaw.com

  3. Preview: • Precursors to the Access Issue • The Changing Regulatory Environment • New Technologies • The Claims of New Players • The Government Response • A Review of the FCC Decision • What’s Up on the Hill • State Action

  4. Precursors to the Access Issue: • Market Concentration • Regulatory Changes • Technology Changes • MTU Consumer Disconnect

  5. The Changing Regulatory Environment: • Pre - 1984 • Pre - 1996 • Post -1996

  6. New Technologies: • DSL • Cable Modems • Digital • Fiber • Satellites • Fixed Wireless

  7. The Claims of New Players: • ILECs Block Access • Consumers Want Choice • MDU Consumers Denied Choice

  8. The Government Response: • Aggressive In Opening Incumbent’s Networks • Section 251 • Aggressive In Opening Communities • Section 253 • Slow to Open the Last Mile • Section 706 • Section 207

  9. A Review of the FCC’s Competitive Network’s Decision • Exclusive Contracts • Demarcation Point • Access to LEC Conduits & Rights-of-ways • Placement of Small Broadband Antennas

  10. Exclusive Contracts • Prohibited in “Commercial” MTEs • “Exclusive” Broadly Defined • Applies to ILECs & CLECs • Treatment of Mixed Use Bulidings • Grandfathering of Current Contracts?

  11. Access to Inside Wiring • Inside Wiring and DEMARC point Defined • Building Owner May Request Move of DEMARC to MPOE • MPOE Not Automatic • LEC Must Disclose DEMARC Point Within 10 Days • ILEC May Install And Maintain Inside Wiring Under Contract With MTE Owner

  12. Access to Conduits and Rights-of-Ways • Section 224: Non Discriminatory Access to Poles, Ducts, Conduits or Rights-of-Way Owned or Controlled by the ILEC • Right-of-Way Defined • Applies to In-Building & Underground Facilities • State Law Applies to Determine ILEC’s Right to Provide Access to Competitors • Reasonable Compensation for ILEC Determined on a Case-by-Case Basis

  13. Placement of Small Antennas • OTARD Rules Extended to Fixed Wireless Antennas • Does Not Apply to Hub or Relay Antennas • Tenant Must Have Exclusive Use or Control of Mounting Site • OTARD Protection Requires Safety Labelling

  14. FCC Still Pondering: Non-Discriminatory Access • Can FCC Prohibit LECs From Serving MTEs Whose Owners Prevent Competitors In? • Does Indirect Regulation Constitute A Taking? • Apply to Commercial or Residential MTEs? Both? • Details, Details, Details !!! • Triggered Only by Tenant Request for Service?

  15. Still Pondering (cont) Exclusive Access Contracts • Apply Prohibition to Residential MTEs? • Apply Prohibition to Existing Contracts? • Sunset Date For Existing Exclusivity Clauses?

  16. Still Pondering (cont): Preferential Marketing (cont) • Ban LEC/Building Owner Relationships that Act to Exclude Others? • BLECs and MTE Owners Cause Abuse?

  17. FCC Still Pondering (cont) Definition of Rights-of-Ways • Could it Apply Any Where In Building? • Absence of a Defined Space or Pathway? Cable Home Run Inside Wiring • May Telecom Providers Purchase Purchase Abandoned MVPD Wiring?

  18. Texas: A Trend in the Making? Non-Discriminatory Treatment by Building Owners • Applies to Commercial and Residential Buildings (4 or more units) • Tenant Entitled to Choose Telecom Service Provider • MTE Owner May Impose Conditions • CLEC Entry Triggered by Tenant Request • No Exclusive Contracts • Right to Tour Building and Receive Technical Drawings • 30 Days Notice to Building Owner of Installation and 30 Day Negotiation Period • Inadequate Space and Safety Concerns • Reasonable compensation • Dispute Resolution

  19. Government Response: (cont) • What’s Up on the Hill ? • House • Senate • Prospects

  20. Government Response: (cont) • Executive Orders • State Laws • State Commissioners (NARUC)

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