Conflicting language in the USF/intercarrier compensation order could leave price-cap telcos...
Conflicting language in the USF/intercarrier compensation order could leave price-cap telcos unable to recover their costs, companies are telling the FCC. The price-cap companies are responding to FCC requests about the potential impact on subscriber line charges (SLCs) if they…
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use Interstate Access Support (IAS) to build and operate broadband networks instead of reducing SLC levels, according to ex parte filings posted Friday. USTelecom and ILEC representatives met with the Wireline Bureau in December to discuss an apparent conflict in the USF/intercarrier compensation support order. Some language appeared to direct carriers to allocate frozen IAS and interstate common line support (ICLS) to the calculation of interstate access charges, USTelecom said (http://xrl.us/bod6t2). Other language appeared to direct carriers to spend that money on building and operating broadband networks in certain areas, the association said. “The industry noted to the Commission that the same funding cannot be applied to both purposes at the same time.” USTelecom urged the bureau to clarify that the USF/ICC order language should be used “to compensate carriers for required reductions in interstate access charges and mandated limits on end-user charges.” If carriers must use a third of their frozen IAS toward broadband rather than constraining end-user charges, they would have to raise other charges, which could harm voice customers, USTelecom said. Verizon’s filing said that because potential SLC increases are capped, the telco couldn’t recover the entire amount of IAS if it were redirected to broadband networks (http://xrl.us/bod6uv). Verizon said almost $13 million would remain unrecovered for Verizon alone.