Best of the ISP-Lists

Don't Face Them Alone

Members of the ISP-CLEC list discuss the value of retaining an attorney during the CLEC certification process. Besides the obvious, there are many reasons why CLECs need lawyers at all times.

[August 28, 2002]

On the ISP-CLEC list in August, TS asked,

"To set myself up as a CLEC, do I need an attorney? From the regulations for obtaining a CLEC certificate in Virginia, it doesn't look like the state wants much more than a detailed business plan. I'm sure an experienced attorney could help streamline the process, but is it worth the expense?"

A number of respondents contended that an attorney is definitely worth the expense:

[AD explained] "Terminology can differ, as can presentation: you might read the words in English, while they mean something different to a regulator. Also, a regulator might want a particular format used—and even though it isn't in the regulation, they will reject it if it doesn't meet the proper format. A good telecommunications lawyer will suggest what to do and what not to do to make your application go smoothly, and also to position yourself for future changes. For example, in many states it is preferable to set up a subsidiary corporation for your CLEC. If that state requires regulatory review of new debt by the CLEC, then having it separate means you don't have to file every time you want to sign a new capital lease. These are the kinds of situations a good attorney will point out."

[JW offered] "If you have a telecom attorney, they may have contacts that will allow the process to go more smoothly—or they may be able to have someone look the other way on minor issues. Additionally, an attorney accepts the liability if something is not filled out correctly."

[RC observed] "While the Virginia regulations for obtaining CLEC approval may be clearly posted on their website, there may have been many proceedings that originated from those regulations that could affect your application and business plan. A good telecom attorney will be up to speed on all such matters, including any fights with the ILECs that resulted in favorable rulings that you should try to incorporate in your own interconnection agreement."

[DB added] "An attorney who does these things regularly can help you avoid problems. He or she should know what the state commission really wants (as opposed to what its rules say), and can deal with all the lovely B.S. that dealing with any bureaucracy entails. An attorney who does these things frequently may have some specific local knowledge of business conditions, know how to deal with local ILECs, and know which interconnection agreements are most useful to you. You'll have a heck of a time figuring this stuff out from scratch on your own: you're likely to run into regulatory problems that a good communications lawyer will be able to deal with."

RC pointed out that, even if you sidestep the attorney for the application process, it's worth using one later:

"If you file your own application, you may very well coast through the process and get your CLEC certificate. But when you're ready to negotiate your interconnection agreement (which may also be impacted by rulings at the FCC and appellate courts), a good telecom attorney will certainly be worth the money."

— End