David Isenberg’s SMART letter alerts us to some seemingly irrational behavior by the FCC:

The FCC is planning to eliminate wholesale rate rules, called UNE-P, that make it possible for companies that do not yet own their own last mile to enter the local telephone service marketplace. The UNE-P rules were established to make local competition possible. (For a good overview [too technical for me – dw] of the current UNE-P debate see here .)

This is such a reversal and such a bad idea that it’s hard to fathom Chairman Powell’s reasoning. It gives the incumbent telcos more money, but it ends competition and shuts down the market.

Now Howard Greenstein suggests an explanation: Suppose limiting the number of telco providers is a requirement for John “The Felon” Pointdexter’s Total Information Awareness plan?

I’m reluctant to get all paranoid about this, but does anyone have a better explanation?

Kevin Werbach, ex-FCC wonk and all-around good guy, says: Nah. (I’ve boiled down his email while I await permission from him to run it.)

Categories: Uncategorized dw