Incompas Says CenturyLink/Level 3 May Harm Competition; Tribal Group Also Concerned
Incompas said CenturyLink's planned buy of Level 3 could undermine competition and lead to higher prices and less fiber deployment to businesses. "Level 3 is a shining example of how competition and interconnection policy bring more innovation and better customers…
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service to market," said Karen Reidy, vice president-regulatory affairs, in a release Tuesday noting Incompas filed comments in the FCC's review proceeding. "While we understand why an incumbent like CenturyLink would desire to acquire such an innovative network, the significant reduction in competitive choice at building locations across CenturyLink’s footprint threatens to saddle business customers with less choice and higher prices." Level 3 is an Incompas member. In its FCC comments, Incompas said eliminating a last-mile facilities-based competitor would "enable the combined company to more easily execute price squeezes to push other retail enterprise business solution providers out of the market," including for multi-location customers partially in CenturyLink's incumbent telco region. "Applicants attempt to gloss over these issues by understating buildings where they have overlaps, while overstating alternative facilities-based options for business data services at these buildings," said the filing in docket 16-403. It said the takeover "may dampen CenturyLink's plans for fiber deployments to buildings lit by Level 3," and applicants made inadequate showings on dark fiber for long-haul transport and on remaining transport providers. "Before approving this transaction, the Commission must ensure that the competitive force Level 3 has provided is not lost," Incompas said. The National Congress of American Indians asked the agency to use the review to address the lack of affordable broadband on tribal lands. "Many Native Americans reside in CenturyLink’s 14-state service territory which is home to the largest land-based, federally recognized tribal lands in the country. This merger risks lessening the incentive CenturyLink has to invest in their networks that serve Tribal lands ... as the merged entity shifts its business model to one focused on enterprise business services," said NCAI's comments. CenturyLink emailed in response: “Our nation’s telecommunications and IT infrastructure must continue to evolve quickly to meet the ever-increasing demands of government, business and consumers. Because we must meet those needs and strengthen America’s telecommunications infrastructure for the future, it is clear that this transaction is in the public interest.” Level 3 didn't comment.