Telcos that offer local phone service for less than $10...
Telcos that offer local phone service for less than $10 per month will see their high-cost loop and high-cost model support reduced by the difference between $10 and what they charge, the FCC said Tuesday. A report by the Universal…
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Service Administrative Co. showed 123 study areas with rate floor reductions, with a total annualized reduction at about $1.4 million. The commission adopted the rule to reduce high-cost support for incumbent eligible telecom carriers where end-user rates aren’t high enough in its 2011 USF/intercarrier compensation order. The commission said at the time that the purpose of the USF is to help make rural rates reasonably comparable to urban rates, not to subsidize artificially low rates. “Our reforms make universal service fair for all consumers, protecting the consumers and small businesses who pay into the fund while ensuring that rural areas have access to affordable voice and broadband service,” an FCC spokesman said.