PSC changes interpretation of 'telephone company,' grants operating authority to Fiber Asset Co.
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Summary
The Maryland Public Service Commission revised staff interpretation of the state definition of "telephone company" to align with federal law and granted operating authority and COMAR waivers to Fiber Asset Co on Oct. 15, 2025.
The Public Service Commission voted Oct. 15 to grant Fiber Asset Co., LLC authority to provide resold and facilities-based local exchange services in Maryland and to grant related COMAR waivers after staff presented an updated interpretation of the statutory definition of a "telephone company." The vote followed staff testimony that aligned Maryland's approach with Federal Communications Commission precedent.
Jennifer Purvis, appearing for commission staff, told commissioners the company originally filed its application June 25, 2025, for operating authority tied to a larger transaction transferring fiber assets from Castle Fiber LLC to Fiber Asset Co. Staff initially determined the company's services did not fall within Maryland's statutory definition of a telephone company, based on the company's application materials; at an administrative meeting on Aug. 27, 2025, the commission noted the filing and issued a letter order.
On Sept. 5, 2025, Fiber Asset Co. filed a petition for modification asking the commission to grant operating authority because the company said it will provide "special access" services, which FCC precedent classifies as exchange access services. Purvis said staff re-examined the statutory definition in the Public Utilities Article and consulted federal laws, regulations and FCC decisions; staff concluded Maryland should interpret the terms "local exchange telephone services" and "exchange access telephone services" to include advanced services delivered by any technology when they provide access to exchange or exchange-access facilities. Staff recommended granting Fiber Asset Co.'s petition to modify the Aug. 27 letter order and to authorize the company to operate as a telephone company in Maryland, subject to standard waivers.
During discussion commissioners asked about the benefits and consequences of the designation. Purvis said the primary consequence is that recognition as a telecommunications carrier allows the company to exercise rights under the Telecommunications Act of 1996 — for example, to demand access to incumbent network facilities needed to enter a competitive market — and does not generally result in the commission regulating competitive carriers' rates. Keith Smith, outside counsel for Fiber Asset Co., told the commission the company's customers would be enterprise and wholesale customers.
Office of People's Counsel representative Mark Sheebas observed that the company's application appears tied to a larger federal proceeding related to the transfer of assets, and flagged that FCC approval of the parent transaction could be relevant.
After discussion, a commissioner moved to grant Fiber Asset Co. the requested authority and the requested COMAR waivers. Commissioners recorded aye votes and the motion passed.
The commission's action implements staff's updated interpretation — including reliance on FCC precedent that special access services providing a dedicated path between an end user and a service provider's point of presence qualify as exchange access — and grants Fiber Asset Co. authority to provide resold and facilities-based local exchange services in Maryland with waivers of specified COMAR provisions.
