Matanuska Telephone Association seeks a waiver of new USF rules...
Matanuska Telephone Association seeks a waiver of new USF rules limiting reimbursement for capital expenditures. The quantile regression model used to calculate costs “has the effect of penalizing MTA for its efforts to deploy an efficient network to serve a…
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vast and challenging service area,” MTA wrote in its petition (http://xrl.us/bnnmnz). The model’s Alaskan coefficient of -0.6223 doesn’t account for the high costs of deploying infrastructure in MTA’s rural territory, and leads to the conclusion “that MTA’s infrastructure costs are currently too high when compared to carriers in the rest of the country by extrapolating costs from the operations of other Alaska carriers that simply do not apply to MTA’s operations,” the petition said. “This result simply does not jibe with the facts."