CPUC Reduces LifeLine Rate, Dismisses O1 Complaint Against AT&T
The California Public Utilities Commission agreed to reduce the phone bill surcharge rate for the state low-income fund to 4.75 percent from 5.5 percent, effective Nov. 1. At a meeting Thursday, commissioner unanimously approved that and several other telecom items…
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on its consent agenda. The new rate for California LifeLine “strikes a good balance between sufficient revenues to meet anticipated growth in participation and maintain a positive program fund balance,” CPUC said in a draft of the order. The surcharge applies to all telecom carriers and interconnected VoIP providers. As of June 30, more than 2.1 million customers were enrolled in LifeLine, the CPUC said. The previous surcharge was in effect since Oct. 1, and was meant “to increase program fund reserves and meet increased program growth from wireless customers,” it said. Communications Division (CD) "analysis shows that current CA LifeLine surcharge may be reduced to 4.75% due to adequate fund reserves, even though CD expects an increase in program participation during the second half of FY 2016-17.” The CPUC noted a declining billing base for the fund, a trend seen in other state USF funds (see 1607010010), due to fewer landlines, dropping prices and an increasing number of wireless carriers reporting intrastate revenue using the FCC safe harbor formula. Also at the meeting, CPUC agreed to an AT&T Mobility motion to dismiss a complaint against the telco by O1 Communications. O1 sought an order prohibiting AT&T from disconnecting direct connections between their networks. But the commission found the complaint procedurally defective because it failed to state a cause of action for which relief could be granted. “Nothing in California or federal law or Commission orders requires AT&T Mobility Wireless to directly interconnect with O1 Communications network,” CPUC said in the proposed decision. Also, the commission granted a certificate allowing eNetworks to provide full facilities-based and resold competitive local exchange service throughout territories of AT&T, Frontier Communications, Consolidated Communications and Citizens Telecommunications, and full facilities-based and resold interchange services statewide. And it granted a certificate to Mobilitie Management to provide resold and limited facilities-based competitive local exchange telecom services.