CenturyTel-Embarq Comments By Dave
Tuesday, 19 May 2009 19:07

Julie, Don, Jennifer, Marcus
When I read Sam Feder's ex parte, I didn't see anything about extending broadband to most of the unserved in the Century/Embarq territory, which I'm sure we all agree would be a welcome decision. Four years ago Ed Whitacre said to me that he could inexpensively reach his entire territory with DSL repeaters etc, and I'm sure many of you remember that in the 1999 Pronto announcement he said he would do just that by 2004-2005. British Telecom is now at 99.6% availability, and Scotland, including Highlands and islands, is at 100%. I believe Century territory is not that much harder to serve than most of Scotland or AT&T's rural areas, so I'd like to discuss the economics in the context of the merger.

I also am surprised Century and Embarq didn't match the offer of DSL for $10 that was included in the AT&T BellSouth merger. With a new administration that made broadband for all part of the party platform, I'd think we'd expect as much in 2009 as the FCC achieved in 2007 when the technology was less advanced.

I also wanted to review (very briefly) the backhaul (middle mile, special access) costs and the affect of high backhaul on broadband competitors.

I earn my living as a reporter but I also advocate when I believe I have importeant perspective. I think the right thing for me to do on this is file all the ex parte paperwork, etc., but I look to you for guidance on what's right.

I'm available by phone from New York or in person anytime that works for you except Thursday afternoon, when I'm chairing a sessio9n about HD Voice in New York.

Please guide me on anything in the procedure I've skipped.
db

p.s. In January at Gigi and Phil's event, several commissioners made a point of saying they thought it constructive to have back and forth and different points of view in the ex parte process. I would be delighted to participate in any such effort by the commission that fits within the rules. For example, if I were to come in to discuss these issues, I'd welcome having there as well a representative of the companies who could correct any errors of fact I make about their costs to meet the proposed agreements. It would be very different thatn the previous procedure, but it makes sense to me. I'm comfortable with any procedure that you choose. I'm also comfortable if the commission wants to make a tape or transcript and distribute it publicly, etc. I'm a strong believer in transparency, and happy to practice it when I advocate.

Here's a note I sent over to Sam looking for more details than were in the ex parte. I know the history of the FCC asking for more comprehensive ex parte filings, but also realize what may have been a short phone call needn't require massive paperwork.
Sam

I've been looking at several aspects of the merger, so checked the ex parte filing. I was disappointed by the lack of detail, assuming what I have below is the whole filing. So I thought to send a follow-up note asking you to enumerate " All concerns expressed in this proceeding" that you addressed. I haven't read the FCC filings yet, but I've looked at some of the issues that came up in the states. In particular, I'm wondering how CenturyTel and Embarq will address the many homes they don't offer broadband to, given that companies like BT as well as many smaller rurals are over 98% coverage. I'm also wondering what the merged company is offering similar to the $10/month broadband that was included in the BellSouth deal and strongly supported by two of the current FCC commissioners. I wouldn't think they'd accept less now that they are in the majority, but I didn't notice any offer like that in any of the filings I looked at.

You may remember I took an editorial position on the BellSouth merger that Kevin should have required universal broadband as part of the deal. That opinion was informed by comments from Ed Whitacre himself that they could inexpensively extend terrestrial broadband to everyone, mostly by using DSL repeaters which now go to five megabits. I haven't said the same here, but I probably will. So I'm looking for context on that. I also see that backhaul rates (special access, middle mile) are coming high on the agenda, and know you've made some offers to the states.

I normally wouldn't press for a quick response, but I hear from Jessica decisions are imminent. From what I know of the Century and Embarq networks, reaching many more with broadband is practical and I'd believe it good public policy.

Help appreciated
db
212-655-9252
Ms. Marlene Dortch
Secretary
Federal Communications Commission
445 12th Street, S.W.
Washington, D.C. 20554
Jenner & Block LLP
1099 New York Avenue, NW
Suite 900
Washington, DC 20001
Tel 202-639-6000
www.jenner.com
Samuel L. Feder
Tel 202 639-6092
Fax 202 661-4999
sfeder@jenner.com
Chicago
New York
Washington, DC
Re: Ex Parte Notice, WC Docket No. 08-238, Embarq Corporation, Transferor, and
CenturyTel, Inc., Transferee, Application for Transfer of Control of Domestic
Authorizations Under Section 214 of the Communications Act
Dear Ms. Dortch:
On May 15, 2009, representatives of CenturyTel and Embarq (collectively, the
"Applicants") spoke by phone to Commission staff about the above-referenced proceeding.
Specifically, I spoke separately to Julie Veach, Don Stockdale, and Jennifer Schneider; David
Bartlett spoke to Jennifer Schneider; Greg Vogt and I spoke to Don Stockdale and Marcus
Maher; Greg Vogt, Jeff Glover, David Zesiger, Bill Cheek, David Bartlett, and I spoke with
Jennifer Schneider and Don Stockdale.
In these calls, the Applicants discussed the commitments they have offered. The
Applicants explained the basis for their commitments, argued that they have addressed all
concerns expressed in this proceeding, and urged the Commission to approve the transaction
promptly.