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FCC Announces Voice & Broadband Benchmarks: Rates & Minimum Usage Allowance

FCC Announces Voice & Broadband Benchmarks: Rates & Minimum Usage Allowance

December 16, 2021 – The FCC’s Wireline Competition Bureau and Office of Economics and Analytics have announced the 2022 reasonable comparability benchmarks for fixed voice and broadband services for eligible telecommunications carriers (ETCs) that are subject to broadband public interest obligations (i.e., incumbent local exchange rate-of-return carriers, incumbent price-cap carriers that are receiving Connect America Fund Phase II support, Rural Broadband Experiment providers, CAF Phase II Auction winners, and Rural Digital Opportunity Fund Auction winners).[1]

Voice Rates.  The 2022 urban average monthly rate is $35.05. Therefore, the reasonable comparability benchmark for voice services, two standard deviations above the urban average, is $52.65. Under the FCC’s rules, each ETC, including competitive ETCs providing fixed voice services, must certify in their FCC Form 481 filed no later than July 1, 2022, that the pricing of its basic residential voice services is no more than $52.65.

Broadband Rates.  The reasonable comparability broadband benchmark varies, depending upon the supported service’s download and upload bandwidths and usage allowance. To facilitate benchmark calculations, broadband providers can utilize an Excel file calculation tool, available at http://www.fcc.gov/encyclopedia/urban-rate-survey-data. Recipients of high-cost and Connect America Fund support that are subject to broadband performance obligations are required to offer broadband service at rates that are at or below the relevant reasonable comparability benchmark. Carriers subject to the Alaska Plan are required to meet Alaska specific benchmarks and to certify that they are meeting the relevant reasonable comparability benchmark for their broadband service offering in the FCC Form 481 filed no later than July 1, 2022.

DA 21-1588

Minimum Usage Allowance.  The Bureau has adopted a minimum monthly usage allowance of 500 GB for 2022. An explanation of the Bureau’s calculations determining the minimum monthly usage allowance is available from the Bureau’s Public Notice. ETCs subject to broadband public interest obligations must provide broadband with usage allowances reasonably comparable to those available through comparable offerings in urban areas.

Data on fixed voice and broadband services data collected in the most recent urban rate survey, and explanatory notes regarding the data, are available on the FCC’s urban rate survey website at http://www.fcc.gov/encyclopedia/urban-rate-survey-data.

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[1] Wireline Competition Bureau And Office Of Economics And Analytics Announce Results Of 2022 Urban Rate Survey For Fixed Voice And Broadband Services, Posting Of Survey Data And Explanatory Notes, And Required Minimum Usage Allowance For Eligible Telecommunications Carriers, WC Docket No. 10-90, Public Notice, DA 21-1588, (Dec. 16, 2021), https://docs.fcc.gov/public/attachments/DA-21-1588A1.pdf.

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