All in USF
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.
NTCA—The Rural Broadband Association and US Telecom have filed a joint petition requesting temporary forbearance from the application of universal service fund contribution rules to broadband Internet access transmission services provided by rural local exchange carriers. The two broadband associations are seeking forbearance pending the completion of comprehensive USF contributions reform.
FCC Commissioners Michael O’Rielly and Mignon Clyburn have coauthored an article posted on the FCC’s official blog that asks whether means-testing could bring “efficiencies” to the universal service fund’s high-cost support mechanism.
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 Federal Communications Commission has released the Lifeline Modernization Order makes significant revisions to the rules governing the universal service Lifeline program. Among other important changes, the order sets new minimum Lifeline service standards for voice and broadband and gradually eliminates support for standalone voice service.
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.
The Federal Communications Commission has 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.
The FCC has denied a petition filed by Sandwich Isles Communications, Inc. seeking waiver of the $250 per line per month cap on high-cost USF support for a period of ten years. The FCC concluded Sandwich Isles failed to show good cause for the waiver after determining Sandwich Isles has certain expenses that appear grossly excessive and unreasonable.
The FCC has released of a Further Notice of Proposed Rulemaking asking for stakeholder input on whether the existing USF contributions system should be modified or whether it should be replaced with an entirely new system. The FCC wants responses, input, proposals, and detailed data from all USF stakeholders, including contributors, potential contributors, individual consumers, business consumers, consumer advocacy groups, and state and Tribal governments.
