FCC Agrees to Help Better Define Data Roaming Rates

[cdmagurus.com]

The FCC today granted T-Mobile's petition that the agency "provide guidance on the application of the commercial reasonableness standard" with respect to data roaming rates. T-Mobile filed the petition earlier this year in order to help it and other carriers negotiate better roaming rates with larger rivals AT&T and Verizon Wireless. Since 2011, the FCC has mandated that all carriers allow competing devices to roam onto their networks at fair prices. The FCC did not suggest or otherwise imply what those fair prices should be. T-Mobile argued the FCC's 2011 mandate did not provide enough guidance for setting rates and the result has been what T-Mobile calls exorbitant fees charged by AT&T and Verizon to roam onto their networks. Sprint and other members of the Competitive Carriers Association supported T-Mobile's position, while AT&T and Verizon Wireless opposed it vehemently. The two larger carriers argued any such guidance could result in reduced rates over the long term and would serve as unnecessary regulation. After weighing the arguments, the FCC agreed with T-Mobile's position that it should offer guidance on reasonable pricing. Specifically, the FCC will adopt T-Mobile's four proposed benchmarks when assessing the reasonableness standard: 1. retail rates; 2. international roaming rates; 3. MVNO/resale rates; and 4. roaming rates charged by other providers. "In our view, the additional guidance we provide under the standard set forth ... will facilitate the ability of parties to negotiate successful data roaming agreements, which in turn will promote the provision of high quality advanced broadband services by multiple service providers in urban, suburban, and rural areas to the benefit of American consumers," said the FCC.


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