Statement from ACI Regarding the FCC’s Business Data Services (BDS) Proposal Order

“The American Consumer Institute Center for Citizen Research applauds Chairman Pai and the FCC for taking a positive step towards a more competitive and vibrant BDS marketplace.

The FCC’s prior rate regulations imposed on incumbent local exchange carriers provided no benefit consumers, businesses, broadband build-out and the economy. In fact, setting artificially low rates hinders infrastructure deployment of broadband services and reduces market competition in the very communities where price controls were designed to benefit.

The previous rate controls were based on the false assumption that competition and investment could never flourish in the BDS marketplace, particularly in rural areas. The FCC’s new order recognizes that this is not the case. Today, these markets exhibit heightened market rivalry. Consequently, easing the regulatory burden on BDS companies and modernizing the rules involved will bring market forces to bear and allow competition to drive investment and innovation in the BDS sector to the benefit of consumers.

The American Consumer Institute Center for Citizen Research encourages Chairman Pai to continue bringing more transparency to the FCC, championing competition, and easing unnecessary regulatory burdens.”

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