Commenting on the FCC order, Covad Communications noted that it includes a grandfathering provision for line-sharing customers that was not disclosed in the February announcement. While the order phases out line sharing for new customers, it preserves line splitting, which allows Covad to provide DSL broadband service on the same line a competitive voice provider uses to provide local phone service. The Commission also preserved Covad’s access to full DSL loops and interoffice transport, and strengthened its rules regarding T-1 loops.
Covad noted that new line-shared loops added in the first year after the order’s effective date will be subject to a price ceiling of 25% of the stand alone loop rate in the jurisdiction in which the customer is located. After one year, that price rises to 50% of the full loop rate. After two years, the price rises to 75% of the full loop rate. After three years, the local phone company is no longer required to provide line-sharing for these customers.
Covad said it believes portions of the FCC’s order concerning broadband competition, including the phasing out of line sharing, are not supported by law or the record before the FCC. Covad, therefore, intends to appeal those parts of the decision.
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