The Independent Telephone and Telecommunications Alliance and USTelecom support the...
The Independent Telephone and Telecommunications Alliance and USTelecom support the petition of FairPoint’s ILECs to be permitted to convert the company’s special access services from rate-of-return regulation to price cap regulation, the associations said in FCC filings posted Wednesday in…
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docket 12-71. “FairPoint is in a unique situation” because it’s the only price cap ILEC in the country with rate-of-return affiliates that settle on a cost basis, ITTA said (http://xrl.us/bm55aa). “The request to be permitted to convert the FairPoint Petitioning LECs’ special access services to price cap regulation would ease a significant resource and financial burden on FairPoint and streamline its regulatory obligations.” They should also remain subject to rate-of-return carriers’ schedule for transitioning their intercarrier compensation rates to bill-and-keep, because this would give the smaller, predominantly rural telcos time to adjust their operations to respond to marketplace changes, ITTA said. USTelecom said granting the petition would reduce costs, increase incentives for efficiency, and provide other ratepayer benefits (http://xrl.us/bm55ce). “FairPoint has thoughtfully developed a proposal that benefits consumers, meets several disparate Commission policy goals, and is applicable to FairPoint’s unique regulatory situation,” USTelecom said.