FCC OKs Rural Telco Deals With Cost-Shifting Conditions From Hargray/ComSouth
The FCC cleared several RLEC deals with conditions to address cost-shifting concerns due to their combination of both model-based and cost-based high-cost USF support. The Wireline Bureau granted applications to transfer control of: Westphalia phone and broadband companies to Chapin…
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Communications in docket 17-101; of Scott-Rice Telephone from Allstream Business US to New Ulm Telecom in docket 18-68; of Peoples Mutual phone companies to RiverStreet Management Services in docket 17-365; of Ellerbe Telephone to RiverStreet in docket 18-94; of Tri-County Telephone Membership to Wilkes Telephone Membership in docket 18-95; and of certain assets of Coon Creek phone and telecom companies to Shellsburg Cablevision in 18-177. To mitigate the potential for harmful cost shifting in mixing different types of USF support, the bureau attached conditions established in a Hargray/ComSouth order (see 1805110048), said a public notice in Thursday's Daily Digest: "The combined operating expense ... for each post-consummation company’s rate-of-return affiliates shall be capped at the averaged combined operating expense of the three calendar years preceding the transaction closing date for which operating expense data are available."