312
The Honorable Ajit Pai 
Chairman 
C!Congre~~ of tbe ilniteb i>tate~ 
miasbington, t.D<C 20510 
Aprill8, 2017 
Federal Communications Commission 
445 12th Street SW 
Washington, DC 20554 
Dear Chairman Pai, 
We write to urge you to postpone the vote on the Business Data Services (BDS) Report and 
Order, which is currently scheduled to be considered by all three Commissioners at the Federal 
Communications Commission's (FCC) Open Meeting on April201h. 
BDS are the high-capacity broadband connections that form the backbone of our 
communications network, carrying the massive data f1ows from wireless providers, small 
businesses, schools, universities, libraries and government agencies. A BDS connection is often 
used when a consumer makes an A TM transaction, swipes a credit card at a local gas station, or 
uses a smartphone to make a call, send a text, or search the internet. In 2013 alone, the BDS 
market generated $45 billion in revenue. I BDS services guarantee uptime and service quality, 
features that are essential for small businesses that rely on these connections to conduct their 
business. 
Regrettably, the BDS market suffers from a lack of competition, which is driving up costs and 
leaving businesses, libraries, schools, and anyone who relies on the BDS market with limited 
choices. The FCC's recent data collection in the BDS proceeding is the largest in the agency' s 
history. According to information gathered by the FCC, approximately 73 percent ofBDS 
locations may only be served by one BDS provider, while 97 percent may only be served by one 
or two providers.2 This lack of competition could result in artificially inflated prices for BDS 
services which may ultimately be passed on to consumers. However, the BDS Order' s 
conclusion that there is " robust" competition in these markets, justifying further deregulation, 
appears to be at odds with the data collected by the FCC. 
In the BDS market, we need more protections for competitors and small businesses, not greater 
market control by incumbents. We are concerned that the proposed BDS Report and Order does 
not adequately promote competition or apply appropriate pricing protections where competition 
does not exist, which may result in even higher prices for these essential BDS services. 
The Small Business Administration's Office of Advocacy raised concerns that this BDS proposal 
could result in fewer BDS choices and higher prices for small businesses across America. We 
1 "Tariff Investigation Order and Further Notice of Proposed Rulemaking." Federal Communications Commission, 2 
May2016. Web. 14 Apr. 2017. <https://apps.fcc.gov/edocs_public/attachmatch/ FCC-16-54Al.pdf>. 
2 Ibid. 
agree with the Office of Advocacy's concerns and believe, as they do, that the Commission 
should delay this vote, because the order as currently structured could have a negative effect on 
small businesses and the competitive market. Further, should this order be implemented 
immediately and without any transition period, the businesses and consumers relying on BDS 
could experience disruptive price increases. 
As we work to usher in the next generation of wireless technology, higher BDS prices and few 
choices could hamper the development and deployment of 50 technologies, which will heavily 
rely on BDS connections for backhaul. We are also concerned that draft Order would 
immediately end and not extend for any period of time the essential wholesale voice condition, 
which helps competitive telephone providers continue to access telephone networks to provide 
small, mid-sized and even large businesses, schools, libraries and governmental agencies an 
option for essential voice services and reduce the risk of incumbent carrier monopolies in this 
important segment of the marketplace. 
In light of these concerns, we respectfully request that you postpone the vote on the BDS Report 
and Order. Thank you for your attention to this important matter. 
Sincerely, 
~%· Edward J. Markey 
United States Senator 
~ ~ib ~rL 
Member of Congress