Deregulating by Doing Nothing: The FCC Makes the Right Non-Decision

by on March 21, 2006

One problem at the FCC–and most other regulatory agencies–is the difficulty of getting obsolete restrictions off the books. Even minor changes get bogged down in endless notices of proposed rulemaking and further notices of proposed rulemaking. This make good business for lobbyists, but not good policy. But a provision adopted in the ’96 Telecom Act–until recently rarely used–may change that. Known as “forbearance,” the provision directs the Commission to “forbear”–stop enforcing–regulations it finds are no longer necessary. And, if it doesn’t act within a year on a petition to forbear, the petition automatically takes effect.

That’s exactly what happened this Monday when the deadline for action on a Verizon forbearance petition expired. The petition has asked for deregulation of Verizon’s business broadband services–which operate in a fairly competitive market. It has now taken effect–freeing Verizon of common carrier requirements, line sharing requirements, and a raft of other unnecessary rules.

The exact extent of the change is a bit unclear, since there was no written decision implementing the change. But they are likely substantial, and given the competition in this area, well-justified.

Not all members thought this a good thing. Democratic Commissioner Jonathan Adelstein was apoplectic, saying the non-action “erases decades of communications policy in a single stroke.” That’s an exaggeration, but wouldn’t that be a good thing if true?

Congratulations to Chairman Martin and the FCC for getting unnecessary rules off the books. Hopefully, there will be a lot more to come.

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