Both sides are claiming victory in the Federal Communication Commission's recent decision to force owners to open up their commercial buildings to local phone companies, an edict that will compel greater competition among service providers and lead to lower costs for millions of tenants.

The FCC's ruling prohibits commercial building owners from entering into exclusive contracts with telecommunications carriers. But the agency did not place a similar limitation on owners of apartment buildings, which would have given rival carriers an even larger pool of potential customers.

At the same time, though, apartment owners and managers have agreed to voluntarily increase access to their buildings, a move that won praise from FCC Chairman William Kennard.

But it was either that or be forced to live under extensive regulations backed by some in the telecom business that would have governed the way owners provide access to their buildings for communications services. As it is, the FCC said it is still considering whether to extend the new requirements to residential structures.

The FCC's decision "charts a middle ground that recognizes real estate's critical role for ensuring tenants have access to the types of telecom services they need and want without infringing on the constitutional rights of private property owners," said Roger Platt, spokesman for the Real Access Alliance, a group of realty interests.

However, Platt said he reserved final judgement until he reviews the FCC's report and order once it's issued.

The telecom industry was hoping to force property owners to provide unlimited, uncontrolled and free access to both commercial and residential buildings to any and all carriers. But the agency's rule applies only to office housing multiple businesses, many of which are now forced to deal with the provider with which the building owner has a contract.

The FCC's decision also requires on incumbent phone companies already in commercial structures to open their equipment rooms and wiring to use by their competitors.

Owners, on the other hand, have argued the forcing them to open their equipment rooms and wiring amount to an unconstitutional "taking" of their property. And they may have some support in Congress in the person of Rep. Billy Tauzin, R-La., chairman of the House Commerce Telecommunications Subcommittee.

"I don't think (the FCC) can mandate access in private buildings without legislation setting down parameters for private property rights," he told the Associated Press. "There is a marketplace incentive for building owners to provide those kind of services." But a spokesman for the telecom industry said firms are ready, will and able to justly compensate any owner who allows them inside their buildings.

Published: October 30, 2000

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