FCC Recon Order Alters Stand-Alone Broadband Rules in 2016 Rate-of-Return USF Overhaul
The FCC revised rules for rural telco consumer broadband-only loop (CBOL) services adopted in a 2016 rate-of-return USF overhaul order. The commission replaced a "surrogate cost method for determining the cost of CBOLs with rules employing existing separations and cost…
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allocation procedures," said a reconsideration order in docket 10-90 in Tuesday's Daily Digest responding to an NTCA petition. It modified a "rule requiring rate-of-return carriers to impute on CBOLs an amount equal to the Access Recovery Charge (ARC) that could have been assessed on a voice or voice/broadband line to better implement our intent to maintain the balance between end user charges and universal service adopted" in a 2011 USF and intercarrier-compensation transformation order. The commission clarified "two matters pertaining to reductions in Connect America Fund Broadband Loop Support (CAF BLS) due to competitive overlap": affecting reduction amounts associated with a "second disaggregation method" and declaring a transition "schedule applies where the CAF BLS subject to competitive overlap is 25 percent or more of total CAF BLS." The various adjustments provide "more certainty and stability for carriers investing for the future, thereby ensuring that all consumers have access to advanced telecommunications and information services," the order said. Senior Vice President Mike Romano said Tuesday NTCA is pleased the FCC acted on the ARC and surrogate-cost issues raised in its petition. "The order represents a few more important steps in addressing the ‘punchlist’ of items flagged in our petition, and we are eager to keep working with the FCC to address the outstanding items on that list to put the high cost mechanisms in a better position to truly deliver on the mission of universal service."