At issue is the question of how the FCC should define unbundled network elements (UNEs) as required by Section 251(c)(3) of the 1996 Telecommunications Act. CompTel emphasized that the Act’s "promise of widespread and vigorous local competition would be severely damaged if the Commission were to define a UNE in a way that discriminates among carriers or otherwise violates the fundamental principles on which the Act is predicated."

The five principles outlined in CompTel’s letter are:

1. The Commission should promote all entry strategies equally.

   CompTel noted that the 1996 Telecommunications Act does not prefer one method of entry into the local exchange market over any other method. "We, therefore, urge the rejection of arguments which explicitly or implicitly depend upon a preference for ‘facilities-based’ market entry Just as it is not permissible to require facilities as a prerequisite to using UNEs, it also is not permissible to restrict UNEs in order to ‘promote’ facilities deployment."

2. The choices of one competitive local exchange carrier (CLEC) should not limit the options of another.

   Noting that the history of competition in the long distance marketplace teaches that providers compete in many different ways, each of which requires different methods of providing service to the customer, CompTel stated that "each local service provider must be able to pursue its business plan unimpeded by the choices of its competitors. For example, the needs of a carrier serving an existing base of dispersed customers will differ from those of an entrant choosing new areas in which to enter. Accordingly, the Commission’s UNE definitions must allow a requesting carrier to pursue any investment-backed business plan, regardless of the choices made by other entrants in the market."

3. UNEs may not be restricted based on the service a requesting carrier intends to provide or the customer it intends to serve.

   "Not limiting the type of telecommunications service a carrier may provide fulfills the Act’s purpose of maximizing competitive alternatives for all customers," the association stated. "It is critical, therefore, that the Commission not impose any use-based or customer-based restrictions on the availability of UNEs."

4. UNE definitions should be technology and facilities-neutral.

   CompTel urged the FCC to promote competitive neutrality by ensuring that its definitions of UNEs are technology and facilities-neutral, i.e., enough to meet the needs of both wireless and wireline providers and to satisfy the demand for advanced telecommunications services. Specifically, CompTel asked the FCC to ensure UNEs are defined by their functionality whenever possible; and avoid implicit bias toward the deployment of network transmission facilities. CompTel also noted that the FCC "Should be careful not to interfere with the economic and business decisions of carriers by rewarding one type of facilities over another. Any assumptions that the Commission makes regarding the capabilities of a carrier will determine which types of carriers are able to compete, and thus will reduce the market for competitive services."

5. The commission should promote wholesale entry options in order to spur competition.

   CompTel stated that the "primary purpose of UNE-based entry is to lower entry barriers by providing a wholesale entry option … With wholesale entry options widely available, new carriers enter the market quickly, and offer consumers new and different services. Unless and until externally-supplied elements may be used interchangeably and alternative wholesale suppliers enable carriers to choose among providers for network elements, preserving the availability of this option from the ILEC is essential."