The FCC should take a closer look at how using reverse auctions t...
The FCC should take a closer look at how using reverse auctions to distribute Universal Service Fund support would affect small carriers financially, said the Office of Advocacy for the U.S. Small Business Administration. The FCC proposed the use…
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of reverse auctions in one of three continuing proceedings on revamping USF. In reply comments, the office said new USF rules “could impose an economic burden” on small incumbent and wireless carriers. The FCC should study how reverse auctions have worked in other industries and use a test market to see how they would work in telecom industry, it said. And the FCC should study how numbers-based USF contributions “may reduce some of the administrative burdens associated with USF reporting for small carriers,” the office said. USF contributions are now based on interstate revenue.