Carriers Debate Connections-Based Alaska USF
Alaska telecom associations submitted state USF update proposals with a connections-based contribution method to the Regulatory Commission of Alaska in docket R-21-001. The Matanuska Telecom Association submitted its proposal for a flat-rate surcharge Wednesday after previewing it at an RCA…
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meeting last month (see 2108110059). The revenue-based fee went as high as 19% in 2018 before the RCA capped it at 10%, MTA said. The RCA would require the new method and let the Alaska USF administrator set the monthly per line fee, the group proposed: No distribution changes are necessary. The Alaska Remote Carrier Coalition filed a plan for a new “Remote Alaska Fund” with a connections-based method that at first would support voice and later broadband. The RCA should set the AUSF at $30 million yearly, split evenly between small and large carriers, it said. GCI neither supports nor opposes any reform plan, and “is ambivalent about a connections-based funding mechanism,” the carrier commented. “Such a charge is certainly not a magic bullet that will solve the funding issue; the source of funding would continue to remain with ratepayers.” It could mean $2 per line monthly for every Alaska phone customer, and the RCA should consider how that “charge itself harms the goal of universal service,” GCI said. Alaska Communications suggested splitting the proceeding into two phases, the first to decide whether to continue the fund and any contribution changes, the second to tackle distribution changes.