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 SEPARATE  STATEMENT  OF  CHAIRMAN  MICHAEL  K.  POWELL 
 Re:  Section  272(  b)(  1)  ’s  “Operate  Independently”  Requirement  for  Section  272  Affiliates;  Petition  of  SBC  for  Forbearance  from  the  Prohibition  of  Sharing 
 Operating,  Installation,  and  Maintenance  Functions  under  Sections  53.203(  a)(  2)  and  53.203(  a)(  3)  of  the  Commission’s  Rules  and  Modification  of  Operating, 
 Installation,  and  Maintenance  Conditions  Contained  in  the  SBC/  Ameritech  Merger  Order;  Petition  of  BellSouth  Corporation  for  Forbearance  from  the 
 Prohibition  of  Sharing  Operating,  Installation,  and  Maintenance  Functions  Under  Section  53.203(  a)(  2)-(  3)  of  the  Commission’s  Rules;  Review  of  Regulatory 
 Requirements  for  Incumbent  LEC  Broadband  Telecommunications  Services,  Report  and  Order  in  WC  Docket  No.  03-  228;  Memorandum  Opinion  and  Order  in 
 CC  Docket  Nos.  96-  149,  98-  141,  01-  337 


 Regulators  bear  an  important  obligation  to  retire  rules  that  no  longer  serve  their  intended  purpose.  Today’s  Order  is  faithful  to  that  charge.  This  item  eliminates  the 
 unnecessary  and  costly  prohibition  on  certain  types  of  sharing  between  Bell  operating  companies  (BOCs)  and  their  separate  affiliates.  1  In  this  instance,  the  items  find  the  costs 
 of  prohibiting  BOCs  from  sharing  operations,  installation  and  maintenance  (OI&  M)  now  outweigh  the  purported  benefits.  Moreover,  other,  less  intrusive  rules  already  minimize 
 the  risk  of  discrimination  and  cost  misallocation  by  the  BOCs.  As  a  result,  the  time  for  requiring  the  prohibition  on  OI&  M  sharing  has  passed. 


 Significantly,  today’s  order  does  not  represent  an  exercise  of  our  forbearance  authority.  Instead,  the  Commission  has  fulfilled  its  obligation  to  reexamine  the 
 Communications  Act  in  light  of  our  experience  and  marketplace  changes.  While  I  am  pleased  that  the  Commission  has  acted,  I  also  believe  that  this  Commission  could  have 
 achieved  this  pro-  competitive  result  through  the  use  of  our  forbearance  authority.  Indeed,  as  Commissioner  Abernathy  rightly  points  out,  a  forbearance  approach  would  have 
 avoided  any  tension  between  today’s  action  and  past  Commission  Orders  on  this  subject.  Nonetheless,  I  am  pleased  that  the  Commission  has  moved  to  update  our  rules  and 
 appreciate  the  support  of  my  colleagues  in  this  proceeding.  Consumers  benefit  when  providers  can  direct  resources  away  from  complying  with  unnecessary  regulations  and 
 toward  competing  in  the  marketplace. 


 1  47  C.  F.  R.  §  53.203(  a)(  2)-(  3). 
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