*Pages 1--2 from  Microsoft Word - 45971.doc*
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 DISSENTING  STATEMENT  OF  COMMISSIONER  MICHAEL  J.  COPPS 
 Re:  Unbundled  Access  to  Network  Elements,  Review  of  the  Section  251  Unbundling  Obligations  of  Incumbent  Local  Exchange  Carriers,  Order  on  Remand 
 (WC  Docket  No.  04-  313,  CC  Docket  No.  01-  338) 
 We  are  living  in  a  new  world  when  it  comes  to  wireline  competition.  It  is  not  a  world  of  my  making  or  my  choosing,  and  I  am  deeply  troubled  by  the  conviction  that  this  new  world  will  be 
 characterized  by  dramatic  changes  that  will  negatively  impact  American  consumers.  In  decision  after  decision  over  the  past  three  years,  this  Commission  has  taken  actions  curbing  competition  and  limiting 
 consumer  choices,  in  the  process  straying  far  from  the  paradigms  of  competition  laid  out  in  the  Telecommunications  Act  of  1996. 


 Our  challenge  today  is  to  craft  rules  that  will  be  acceptable  to  the  courts  and  true  to  our  statutory  directives.  I  entered  this  remand  proceeding  hopeful  that  we  could  reach  a  compromise  that  would  ensure 
 some  future  for  competition  among  wireline  service  providers  and  to  provide  a  decent  future  for  facilities-based  carriers.  We  have  had  a  long  and  serious  dialogue  over  this  item,  extending  through  most  of  the 
 night  and  right  into  today.  I  appreciate  my  colleagues’  willingness  to  engage  in  this  discussion  and  to  make  the  effort  to  achieve  consensus.  Unfortunately,  in  the  final  analysis,  consensus  eluded  us.  I  thought 
 we  were  getting  close,  but  we  couldn't  cross  the  finish  line.  I  cannot  support  the  decision  that  resulted. 
 What  we  have  in  front  of  us  effectively  dismantles  wireline  competition.  Brick  by  brick,  this  process  has  been  underway  for  some  time.  But  today’s  Order  accomplishes  the  same  feat  with  all  the 
 grace  and  finality  of  a  wrecking  ball.  No  amount  of  rhetoric  about  judicially  sustainable  rules  and  economically  efficient  competitors  can  hide  the  blockbuster  job  this  Commission  has  done  on 
 competition.  During  its  tenure,  the  largest  long  distance  carriers  have  abandoned  the  residential  market.  And  as  a  result  of  today’s  decision,  other  carriers  will  follow  suit.  In  their  wake  we  will  face 
 bankruptcies,  job  losses  and  customer  outages.  Billions  of  dollars  of  investment  capital  will  be  stranded.  And  down  the  road  consumers  will  face  less  competition,  higher  rates  and  fewer  service  choices. 


 After  having  abandoned  residential  competition  earlier,  today  the  majority  also  hangs  up  on  small  business  consumers.  Small  business  likes  competition.  It  has  voted  with  its  feet  for  competition.  In  fact, 
 the  Small  Business  Administration  tells  us  that  in  metropolitan  areas  competitive  carriers  serve  29  percent  of  small  businesses.  The  inroads  competitive  carriers  have  made  in  this  community  are  important, 
 because  small  business  is  the  engine  of  our  economy.  Small  businesses  generate  between  two-  thirds  and  three-  quarters  of  all  new  jobs  in  this  country.  They  represent  over  90  percent  of  employers  and  they 
 produce  over  half  of  the  nation’s  private  sector  output.  The  savings  they  enjoy  from  competitive  telecommunications  services  go  straight  to  the  bottom  line.  But  the  majority’s  action  today  pulls  the 
 bottom  out  from  under  small  business  competition.  It  places  restrictions  on  access  to  high-  capacity  loop  and  transport  facilities  that  are  vital  for  carriers  serving  small  businesses.  It  imposes  economically 
 unsound  tests.  In  short,  it  burns  the  bridges  competitive  carriers  have  made  in  serving  the  small  business  community. 


 For  a  Commission  that  has  laced  its  decisions  with  praise  for  facilities-  based  competition,  today’s  action  is  a  funny  way  of  showing  its  continued  support.  As  a  result  of  this  decision  there  will  be  less 
 competition,  less  choice  and  higher  rates.  The  people  who  pay  America’s  phone  bills  deserve  better.  I  dissent. 
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 Some  would  have  us  believe  that  this  is  the  road  we  have  to  travel  in  the  wake  of  court  decisions.  Yet  it  is  this  Commission  that  refused  to  seek  review  of  the  very  court  decisions  they  now  claim  constrain 
 us. 
 Though  I  do  not  join  this  decision  today,  I  wish  to  thank  the  Commission  staff  for  their  hard  work  on  this  item.  This  proceeding—  and  its  predecessor—  have  not  been  easy.  But  throughout  the  Bureau  has 
 been  helpful,  candid  and  generous  with  their  time.  I  am  grateful  for  their  devotion  to  the  task  at  hand  and  hope  that  there  is  some  well-  deserved  time  for  rest  and  relaxation  in  the  weeks  ahead. 
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