The structure of USF-supported capital and operating expense caps imposed...
The structure of USF-supported capital and operating expense caps imposed in the FCC USF-intercarrier compensation order “defeats the predictability required of USF support as required by the Communications Act,” NTCA told an adviser to Commissioner Mignon Clyburn on Monday (http://xrl.us/bmzkvv).…
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Dynamic, year-by-year alteration of the caps presents “substantial challenges” for all rural LECs, and instills a “consistent fear that any given RLEC might be next in line to trigger the caps if that RLEC undertakes further broadband deployment,” NTCA said in an ex parte filing. The dynamic nature of the caps also confuses lenders and investors, NTCA said. “Allowing such uncertainty to perpetuate and to potentially stymie the deployment of broadband would be contrary to the very purpose of the National Broadband Plan, the President’s own stimulus initiatives, and stated objectives of the Commission’s reform.” NTCA also expressed concern on continuing call completion issues, truth in Caller ID issues and access avoidance and phantom traffic problems.