Dismissed Without Prejudice

FCC Denies USF Waiver Requests, Cites Available State Relief

May 1, 2013 by Matthew Schwartz|Top News

Several Texas telcos have sought recovery of millions of dollars’ worth of lost federal support money from the state’s USF (CD April 4 p5). “We commend Texas for creating a process to address any unique concerns for carriers in the state of Texas as a result of recent universal service reforms,” the order said. “We consider these efforts to be a positive development for federal-state coordination and partnership, and encourage other states to consider similar approaches as states may be best positioned to address any unique circumstances for carriers in their state."

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The FCC dismissed three petitions for waiver of its USF rules limiting per-line and high-cost loop support (HCLS), in an order adopted Tuesday (http://bit.ly/ZUqpQh). The companies, all located in Texas, should seek state remedies and additional support before asking the FCC for a waiver, wrote Wireline Bureau Chief Julie Veach. Only after pursuing those options may the telcos seek waivers at the commission, the order said.

Dell Telephone Cooperative had sought a waiver of rules imposing a $250 monthly cap on per-line support; rules limiting capital and operating expenses for HCLS; and rules extending existing corporate operations expense limits to the existing HCLS and interstate common line support mechanisms. Border to Border Communications also sought waivers of the per-line and HCLS limits; Central Texas Telephone Cooperative sought a waiver of HCLS limits.

Texas law allows rate-of-return carriers to pursue relief from the state as a result of any change in the FCC’s policy that leads to a reduction in certain LECs’ USF support, the bureau said. Texas statutes also have an “Additional Financial Assistance” provision that gives qualifying ILECs in rural and high-cost areas another source of funds. Several carriers have applied for state relief, the bureau said, such as Hill County Telephone Cooperative and Big Bend telco. Border to Border itself has also applied for state relief, the bureau said.

"In light of the state mechanisms for recovery available to Texas petitioners, and the PUC’s anticipation of processing requests for replacement of USF reductions, we should dismiss without prejudice the petitions for waiver at this time,” the order said. “Given the limits on federal universal service funding and the overall burden to consumers who contribute to the USF, we find that the Texas petitioners have not demonstrated good cause for relief because an alternative avenue for relief is available.”