Study finds US telecom consolidation will aid network reliability during disasters

The current consolidation occurring in the US telecommunications industry is a step toward ensuring network reliability following threats to our nations' security, according to a study released today by homeland security expert Lee Zeichner.

In the study entitled, ‘State Public Utility Commissioners: Homeland Security & National Preparedness Responsibilities,’ Zeichner concludes that state public utility commissioners' current review of major telecom mergers must address not only traditional regulatory issues, such as consumer protection, but also issues like network reliability and resilience, which will continue to affect consumers well into the future.

In reviewing the mergers in the telecom industry, Zeichner asserts, "Telecommunications regulators can affect state and local government response to catastrophic disasters in profound and meaningful ways, directly impacting consumers as well as small to large-sized corporations."

Zeichner is president of Zeichner Risk Analytics, LLC and is the former senior counsel to the President's Commission on Critical Infrastructure Protection. In his study, he notes that two decades after the Ma Bell breakup, communications options and carriers abound. But, with multiple carriers and multiple networks, there is no comprehensive communications infrastructure map to guide disaster planning and response.

"A certain amount of consolidation," Zeichner states, "is critical to support delivery of essential citizen services in the aftermath of a disaster."

Returning to the days of Ma Bell would not be desirable for many reasons. But consumers can still reap the benefits of consolidation through natural mergers, such as Verizon-MCI and SBC-AT&T.

Zeichner explains, "At a minimum, both mergers will improve coordination prior to, during, and after a disaster." The brief further notes these mergers will help minimize logistical problems encountered following disasters.

The brief offers three recommendations for state public utility commissioners to emphasize network reliability and resiliency while also maximizing traditional regulatory issues:

• Public utility commissioners should carefully consider issues related to communications resiliency during their deliberations. For example regulators should consider the impact of their decisions on a state's level of preparedness.
• Public utility commissioners should consider the adverse impact of divestiture requirements on resiliency during merger proceedings, including state and local ability to provide crisis communications.
• Public utility commissioners should commit to resolving operational impediments, such as credentialing processes for gaining physical access to critical telecommunications facilities that undermine network resiliency.

One of the most obvious lessons from Hurricane Katrina is the cascading damage that can be caused by poor communications. Although state public utility commissioners must navigate a host of complex policy items, in today's world it is critical that state regulators consider the effect of their decisions on the reliability of telecommunications services during disasters.

To view the policy brief, please go to www.zra.com

•Date: 18th Nov 2005 • Region: US• Type: Article •Topic: Telecoms continuity
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