FCC Faults Aureon, South Dakota Network CEA Rate Tariffs, Orders Revisions
The FCC ordered Iowa Network Access Division (Aureon) to change its rate tariff for interstate switched transport in its centralized equal access service delivering long-distance traffic to small telcos throughout the state. Separately, Commissioners found a South Dakota Network (SDN)…
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revised rate tariff for its CEA service unlawful. "Substantial questions of lawfulness remain" about Aureon’s rate, including "whether Aureon’s cost-based support demonstrates compliance with the Commission’s affiliate transaction rules," said a unanimous commission order in Friday's Daily Digest and docket 18-60. It directed Aureon to file a revised rate tariff and cost support within 60 days, and an accounting order remains. After a previous order rejected Aureon's rate tariff of 0.576 cent per minute because it was higher than a competitor benchmark rate of 0.5634 cents and had insufficient cost support, the provider in September filed a reduced rate tariff of 0.296 cent. But it drew continued opposition from AT&T, and the FCC found Aureon failed to justify its cost-support calculations, "paying its affiliate Network Division less than the lower of: (1) the fair market value of the leased facilities; and (2) the fully-distributed costs of the leased facilities." The agency didn't address "all of the deficiencies or questions raised in the record," and expects Aureon's revised tariff "to include complete cost support and explanatory material" covering all issues. AT&T is pleased "the FCC has again seen through Aureon’s attempts to inflate its rates through questionable regulatory accounting practices," it emailed. The order is a "continuation of the sudden, perplexing change in how the Commission regulates CEA service: applying onerous ILEC accounting rules even though the Commission has classified Aureon as a CLEC," emailed Aureon's lawyer, Fletcher Heald's James Troup. "Without explanation, the Commission is regulating Aureon differently than every other carrier." He said Aureon’s CLEC rate benchmark (ceiling) of 0.5634 cent is reasonable and lawful under the rules. It's contrary to regulations to require Aureon to reduce its tariff rate further below the benchmark, he said. AT&T and Aureon are challenging several previous FCC decisions at the U.S. Court of Appeals for the D.C. Circuit. In the other proceeding, the FCC said the benchmark rate applicable to SDN's tariffed interstate switched access service is 0.2288 cent, the tandem switching rate CenturyLink charges in South Dakota. SDN's 0.4871 cent rate unlawfully exceeds the benchmark and must be revised within 60 days, said the unanimous order in docket 18-100. SDN is reviewing the order.