FCC Says It Will Not "Automatically" Allow Verizon to Substitute Mobile Service for Fixed

In the wake of Hurricane Sandy, Verizon has had to decide how to restore service to some affected areas that previously had fixed network service, but would be quite expensive to rebuild that same way, compared to use of Long Term Evolution network service, for example. 

The issue is whether, when a carrier has a universal service obligation, it has at least some ability to fulfill that obligation using an access network that matches the required service and application profiles, but uses a network access technology that is suited to the circumstances.

As any network economist will attest, in hard to serve areas, such as those with low density, mobile and fixed wireless or satellite networks can be built faster, and operated at lower cost, than a fixed and wired network. 

The issue is whether such obvious facts of network economics are allowable, especially at a time when the economics of wired access networks are declining. 

The Federal Communications Commission now says it will not "automatically" grant the request by Verizon to do so. 

The issue is whether mobile service can be a substitute for a fixed line service.