EDUCAUSE Comments: FCC “Business Data Services” (BDS) Rule-Making

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(August 17, 2016) EDUCAUSE recently joined with Internet2 to submit comments on the Federal Communications Commission’s pending rule-making about “business data services” (i.e., broadband data and voice services sold to businesses). Internet2 and EDUCAUSE highlighted why the FCC should clarify its definition of BDS to ensure that regulations not intended for research and education (R&E) networks are not extended to them.

In particular, they noted that the FCC’s proposed definition is too broad and thus might be read as encompassing R&E network services, when such services clearly do not fall into the class of telecommunications services that the definition and proposed regulations are intended to cover. Allowing R&E networks to potentially fall under FCC regulation in this fashion would contradict established legal and regulatory precedent excluding such networks from FCC oversight. Thus, EDUCAUSE and Internet2 requested that the FCC revise its BDS definition to more accurately reflect the services it does — and doesn’t — cover.

EDUCAUSE and Internet2 supported this request by reviewing the characteristics of R&E network services that distinguish them from the “competitive business data services” at issue. Specifically, they reflected on the fact that R&E networks provide “highly specialized networking arrangements that are quantitatively and qualitatively distinct” from BDS, with services “designed and operated only for a limited number of users and engineered and managed to those users’ specific needs.” In addition, the nonprofit, member-directed nature of R&E networks and their focus on “specialized backbone services” further differentiate them from the telecommunications service providers the FCC is trying to address. Thus, Internet2 and EDUCAUSE conclude:

The protections that the Commission envisions creating in this proceeding can be accomplished without the Commission potentially subjecting non-profit R&E network operators to the proposed rules, especially when they have absolutely no incentive to leverage non-existent market power to the detriment of their member-customers or community anchor institutions. Indeed, there is no policy rationale that could support viewing R&E networks as belonging to the same market as BDS and being treated the same for regulatory purposes.

The comment period for the BDS rule-making is now closed. EDUCAUSE will work with Internet2 and the R&E network community in general to monitor the proceeding and engage with the FCC as necessary to encourage rules that appropriately exclude R&E networks from their scope.


Jarret Cummings is director of policy and government relations at EDUCAUSE.