FCC Sides With AT&T, Qwest on Pro-Rata Lifeline Reimbursement
The FCC Wireline Bureau partially granted Lifeline USF appeals by AT&T and Qwest, saying eligible telecom carriers (ETCs) were permitted but not required to seek pro-rata support for subscribers enrolled in the low-income support program for less than a month.…
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After the FCC announced and then backed off plans to require ETCs to seek pro-rata support for partial-month subscribers in 2003 and 2004, AT&T and Qwest (now CenturyLink) in 2008 and 2009 appealed decisions by Universal Service Administrative Co. that said they weren't in compliance because they didn't seek pro-rata reimbursement on FCC Form 497 for months in which they had partial month subscribers. In its order Wednesday, the bureau sided with AT&T and Qwest in finding the pro-rata reporting wasn't required. The bureau said "during the times relevant to the appeals," the commission's rules said USF support to ETCs was to be provided "based on the number of qualifying low-income consumers" they serve. "By basing reimbursement on the number of subscribers served, as opposed to how many days each customer has been a subscriber, section 54.407(a) of the Commission’s rules in effect at the time of the period audited does not clearly require pro-rata reporting," the bureau said.