If legislators have their way, the proposed force building access rule currently under consideration at the Federal Communications Commission (FCC) soon will go up in flames.

An increasing number of both U.S. House and Senate lawmakers on both sides of the aisle are voicing concern about the constitutional, practical and legal implications forced building access. Lawmakers are calling on the FCC to postpone or cancel its rulemaking process in favor of a non-regulatory solution proposed by the real estate industry.

Just this month five members of Congress -- several of whom serve in leadership positions on committees with jurisdiction over telecommunications issues -- outlined their concerns about a possible forced building access rule in individual letters to FCC Chairman William Kennard. Under proposals being considered by the FCC, any competitive local exchange carrier (CLEC) could enter every privately owned, multi-tenanted building in America to install their own wiring and equipment for little or no cost.

“I seriously question the need for the Commission to regulate the real estate industry,” wrote Rep. Ellen Tauscher (D-CA), who represents California's Silicon Valley and serves on the House Commerce Telecommunications Subcommittee.

She further wrote that the market for competitive telecom access in multi-tenant buildings is thriving and CLECs are successfully signing thousands of new access agreements with building owners to deliver telecom services to tenants.

“Where is the market failure in the telecommunications marketplace necessary to warrant such a reaction?” wrote Rep. Thomas C. Sawyer (D-OH), also a member of the House Telecommunications Subcommittee, in his August 4 letter to Kennard. “Setting aside the policy ramifications, I was troubled to learn that the Commission would even consider extending its regulatory oversight to buildings, which have never before been subject to its jurisdiction.”

With heavyweights like Henry Hyde and Billy Tauzin also against forced building access, it would be surprising if the FCC bowed to CLEC wished and forced a fight in the Congress.

In other news, Banc of America Securities (BAS) is claiming bragging rights, saying it is the No. 1 arranger of real estate syndicated financings and the leading arranger of REIT syndicated financings so far this year. These rankings are based on both number of deals and dollar volume.

According to Loan Pricing Corporation/Deal Scan, BAS lead arranged more than $5 billion in real estate syndications volume through June 2000, more than $1.3 billion ahead of its nearest competitor.

“We’re pleased to be recognized as the clear leader in this business," said Ross Painter, head of Real Estate Syndications for BAS. "Our success is a result of BAS' commitment to the real estate industry, with teams of dedicated professionals offering a broad range of financial products to serve our valued clients."

Bank of America's Real Estate Group is among the largest bank providers of real estate finance in the world, originating, structuring and underwriting transactions on commercial and residential property, for both national and international clients.

Published: August 31, 2000

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Lesley Hensell covers commercial real estate and financial issues for Realty Times. Based outside of Dallas, Lesley works with high-tech and real estate clients as an independent marketing and public relations consultant. She also writes for several publications, including the Dallas Morning News. E-mail Lesley at: lhensell@earthlink.net