Price cap carriers may use their frozen high-cost...
Price cap carriers may use their frozen high-cost support either to recover the costs of past network upgrades or to extend broadband-capable networks in areas substantially unserved by an unsubsidized competitor, or to maintain and operate existing networks in such…
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areas, or a combination of the two, the FCC Wireline Bureau said in an order Wednesday (http://bit.ly/1csYRtQ). “Price cap carriers are not required to use one-third of their frozen support for new capital investment occurring in 2013.” The bureau was responding to petitions for clarification on the new frozen support rules, filed by USTelecom, FairPoint and Alaska Communications Systems. The obligation to use frozen high-cost support for broadband-capable networks in areas substantially unserved by an unsubsidized competitor applies to carriers at the holding company level, the bureau said. The bureau also clarified that the interstate access support amount for which each carrier was eligible in 2011 “should be implemented as a frozen per-line amount” in calculating subscriber line charges.