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Wheeler Plans December Rural USF Action, Says Expanding Broadband Key in Support Mechanisms

FCC Chairman Tom Wheeler said he plans to circulate a draft rural USF item in December, but said he isn't going to be "held hostage to the calendar." Wheeler was asked at the FCC's news conference Thursday about his intentions…

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on rate-of-return USF mechanisms in light of rural telco concerns that a broad overhaul could need more time combined with pressure from some commissioners to fix the "stand-alone broadband problem" that prevents carriers from receiving support for broadband customers using other providers for voice service (see 1511160043). Wheeler said he is working with Commissioners Mignon Clyburn and Mike O'Rielly on possible changes to the current USF support mechanisms for rate-of-return carriers. He said central to that effort is taking steps to encourage broadband expansion and not just ensuring carriers get paid for existing broadband. He said the parties are making "good progress." He repeated he's "not going to be held hostage to the calendar."