All in Rate-of-Return

Rate-of-Return Operating Expense Limitation Now Includes Inflation Adjustment; FCC Tweaks Corporate Operations Expense Limitation

Rate-of-Return Operating Expense Limitation Now Includes Inflation Adjustment; FCC Tweaks Corporate Operations Expense Limitation

Tony Veach
Broadband, Rate-of-Return, USF

The Federal Communications Commission has released a Report and Order, Third Order on Reconsideration, and Notice of Proposed Rulemaking that continue its efforts to reform the high-cost universal service fund rules that apply to rate-of-return incumbent local exchange carriers. In the Third Order on Reconsideration, the FCC, among other things, revises the formula for calculating a rate-of-return carrier’s operations expense limitation to include an inflationary factor, and makes a revision to its rules to include broadband-only loops when calculating a rate-of-return carrier’s corporate operations expense limitation.

FCC Provides Temporary Relief From Budget Control Mechanism – Will Fully Fund Legacy Rate-of-Return Carrier July 2017 – June 2018 Support Claims

FCC Provides Temporary Relief From Budget Control Mechanism – Will Fully Fund Legacy Rate-of-Return Carrier July 2017 – June 2018 Support Claims

Tony Veach
Broadband, USF, Rate-of-Return

The Federal Communications Commission has released a Report and Order, Third Order on Reconsideration, and Notice of Proposed Rulemaking that continue the FCC’s efforts to reform the high-cost universal service fund support mechanism rules that apply to rate-of-return carriers. In the Third Order on Reconsideration, the FCC has taken action to mitigate the negative effects of the budget control mechanism by fully funding legacy carrier support claims for the July 2017 – June 2018 time period.

Sun Sets On Sandwich Isles’ Exclusive License After FCC Determines It Violates Section 253 Of The Communications Act

Sun Sets On Sandwich Isles’ Exclusive License After FCC Determines It Violates Section 253 Of The Communications Act

Tony Veach
Broadband, Section 253, FCC Preemption, FCC Enforcement Bureau, Rate-of-Return, Universal Service, USF, Wireline

The Federal Communications Commission has determined that an exclusive license to provide telecommunications services granted by the state of Hawaii to Sandwich Isles Communications, Inc. violates Section 253(a) of the Communications Act, and as a result, has preempted enforcement of the license.

FCC Approves New Average Schedule HCLS Formula For Second Half Of 2016

FCC Approves New Average Schedule HCLS Formula For Second Half Of 2016

Tony Veach
Rate-of-Return, Wireline, USF, Universal Service, NECA, Average Schedule

The FCC has approved the National Exchange Carrier Association’s modifications to the formula that will be used to calculate universal service high-cost loop support for average schedule rate-of-return carriers. The new HCLS average schedule formula – in effect from July 1, 2016 through December 31, 2016 – produces a 3.4 percent decrease in HCLS for average schedule study areas which is due to the decrease from 11.25 percent to 11 percent in the prescribed interstate rate of return.

The A-CAM, A Brave New World: Rate-Of-Return Carriers Have Option To Move To Cost Model Regulation

The A-CAM, A Brave New World: Rate-Of-Return Carriers Have Option To Move To Cost Model Regulation

Tony Veach
Broadband, A-CAM, Rate-of-Return, USF

On March 30, 2016, the Federal Communications Commission released a Report and Order, Order and Order on Reconsideration, and Further Notice of Proposed Rulemaking that make significant changes to the universal service rules governing rate-of-return incumbent local exchange carriers. One of the most significant changes in the order gives some, but not all, rate-of-return ILECs the option to move to cost model regulation.