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News Releases
New Edge Networks Asks FCC to Keep Competitive Rules for Non-Metro Areas
VANCOUVER, Wash. – (Feb. 4, 2003) – New Edge Networks today announced it has asked the FCC to maintain its existing unbundling rules on telecommunications transmission facilities to ensure proliferation of competition in non-metro areas, new investments, and regulatory certainty.
“As a three-and-one-half-year-old competitive provider, we don’t have an army of lawyers, lobbyists, or regulatory staff to aggressively lobby and litigate until we get what we want,” said Dan Moffat, president and CEO of New Edge Networks, a national broadband and data communications provider with a strong presence in small cities and towns in 29 states.
“By staying focused on our business and playing by the rules, we’ve prospered through tough times,” Moffat said. “And now with a straight-forward letter, we are making an 11th hour appeal to the FCC to do what is right in the spirit of open competition as intended by the Telecom Act.”
A copy of the letter to the FCC is available at http://www.newedgenetworks.com/_apps/fccletter.php. The FCC is expected to announce results of its triennial review of unbundling obligations by Feb. 20.
In a six-page letter to FCC chairman Michael Powell, facilities-based New Edge Networks notes that it relies on leasing telephone lines and interoffice transport at existing legal pricing models for offering its competitive broadband services. New Edge Networks told the FCC there are no alternate competitive options for public network transmission services in non-metro markets. Changing existing rules could preclude the company from offering competitive alternatives or expanding into other non-metro markets.
“In most instances, we were the first carrier to offer broadband services in these areas; the incumbent phone company simply followed us to market, in city after city,” said Penny Bewick, director of government affairs for New Edge Networks in the letter to the Commission. “Were it not for competitive entry from broadband providers like New Edge, it is likely that these cities and towns would never have seen broadband deployment or at the very least, still be waiting. For many of our rural customers, New Edge remains the only broadband option available.”
DSL technology used to provide new broadband services had been available for years before the Telecommunications act of 1996, which ushered in competitors like New Edge Networks. “There was nothing stopping incumbent telephone companies from introducing DSL services then and there’s nothing to prevent them from doing so now,” Bewick said.
“New Edge simply has no alternative but to purchase these network elements from the Regional Bell Operating Company (RBOC). There are no other providers of high capacity loops (telephone lines) and dedicated interoffice transport in the non-metro markets that we serve,” Bewick wrote. “If the RBOC is no longer required to provide these network elements, New Edge will be effectively forced out of the marketplace. Without competitive alternatives, such as New Edge, these consumers will have either no choice, or no broadband service.”
Based on the availability of unbundled network elements including leasing of phone lines leading to homes and businesses, high capacity interoffice transport lines, and line sharing, New Edge Networks has built a nationwide broadband DSL network that currently reaches more than 360 small and midsize non-metro cities in 29 states – more than any single incumbent telephone or cable television company.
“New Edge has entered these markets with the understanding that the competitive landscape was supported by lawmakers and that the Commission would abide by, and enforce, its previous rulings,” Bewick noted. “Driving competitors, such as New Edge out of the non-metro markets will pull any hope of competitive choice, reasonable prices and quality service out of the grasp of the non-metro consumer.”
Formed in 1999, privately owned New Edge Networks is focused on providing broadband services in small and midsize cities where, it says, demand is as strong as in metropolitan areas. The company has raised almost $400 million and has less than 10 percent debt. In 2002, the company more than doubled its revenue over the previous year.
“We have proven our business model and maintain strong financial sponsorship from tier one investors,” said Dan Moffat, president and CEO of New Edge Networks. “We have aspirations of expanding to small cities and towns in all 50 states but not without a fighting chance or with so much regulatory uncertainty.”
About New Edge Networks
New Edge Networks is a national business class broadband services provider that owns and operates one of the largest multi-service data communications networks in the United States. In addition to providing frame relay, ATM, IP and other advanced data services nationally, New Edge has one of the largest DSL coverage footprints for small and midsize cities across the country. The company also provides dedicated high-speed Internet access in 27 major cites around the country. New Edge Networks offers frame relay access and gateway products through channel partner programs or wholesale relationships. It provides a wide variety of business-class DSL and T-1 solutions through Internet Service Providers and its own TransEdge brand. Top-tier private venture firms, global financial institutions and worldwide technology firms provide financial backing to New Edge Networks. The company’s Web site is www.newedgenetworks.com. Telephone: 1-360-693-9009.
Contact:
Sal Cinquegrani
(360) 906-9723
ATTN: New Edge Networks news releases contain information that is accurate as of the date they are issued. Information contained in past news releases may become out of date and the company does not assume responsibility for updating information contained in past news releases.