Wireline Bureau Still Wants Revised Study Area Boundary Data from ILECs
The FCC Wireline Bureau denied a request Thursday to stay rules requiring ILECs to submit revised study area boundary data. USTelecom, NTCA, the Independent Telephone and Telecommunications Alliance, WTA and the Eastern Rural Telecom Association had asked for a six-month extension, pointing to comments by Chairman Tom Wheeler they said implied the new data wasn’t needed just yet. The Wireline Bureau disagreed, but granted a two-month extension to March 17. The associations told us they hoped that would be enough time.
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"We're encouraged to see the commission recognize the need for more time to review the study area boundaries,” said Michael Romano, NTCA senior vice president-policy. “Due to the high number of boundary discrepancies that must be reconciled and the amount of effort needed for carriers to examine them, agree upon appropriate solutions and finally ensure that accurate modifications are filed with the commission, an extension of the filing deadline was warranted.” NTCA hopes that “getting it done correctly will trump getting it done quickly,” he said.
The ILEC associations had asked for a stay -- or a six-month extension -- of rules requiring their members to “reconcile and revise study area boundary data” (CD Dec 19 p12). The data would be used to implement the USF/intercarrier compensation benchmarking rule, which uses a quantile regression analysis. The ILECs cited Wheeler remarks to Congress that the commission will soon drop the quantile regression analysis mechanism (CD Dec 18 p2). That eliminated the reason for the study area boundary process, which would be very burdensome and time-consuming, they said.
The bureau disagreed, finding correct study area boundary data useful for many reasons beside the quantile regression analysis. “Regardless of any future action by the Commission regarding QRA, it is important for the Commission to have accurate information regarding the geographic area served by an ILEC in each state,” wrote Chief Julie Veach (http://bit.ly/1iY6aM8). “Study area boundaries are relevant in implementing other universal service reforms already adopted by the Commission, including the rule to phase out universal service support where an unsubsidized competitor -- or combination of competitors -- offers voice and broadband service throughout 100 percent of a rate-of-return carrier’s study area, and to assist in resolving challenges to the eligibility of census blocks for the offer of model-based support in price cap territories in Connect America Phase II."
Still, the bureau acknowledged that the process for ensuring accurate data “can be time consuming” and could require discussions with different carriers and state commissions. “We agree that an extension of the process will better enable parties to complete their consultations and revisions, and ultimately will result in more accurate and meaningful data,” Veach said, offering 60 days. “A six-month extension of the process would cause unnecessary delay” in implementation of universal service reforms, she said.
"Our companies will do their best in the time allotted,” said David Cohen, USTelecom vice president-policy. “We do not plan to appeal to the full Commission.” WTA Vice President-Government Affairs Derrick Owens said he’s seeking feedback from the association’s members on whether the two-month extension is enough. ITTA President Genny Morelli said her association was “disappointed” the commission denied the stay and didn’t grant the requested six-month extension. “While the additional two months granted by the Commission will help, we believe that the full six months requested is necessary to ensure complete and accurate boundary data,” Morelli said.