FCC Web Documents citing 54.901

as compiled by hallikainen.com/FccRules on 2012 06 01

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  • the amount of interstate-allocated loop costs that such carriers must recover through carrier common line charges. See First Report and Order, 12 FCC Rcd at 9163-9165. See 47 C.F.R. §§ 54.801-809. Sections 54.801-54.802 of the Commission's rules describes how interstate access support will be calculated for exchanges acquired by price cap LECs. 47 C.F.R. § 54.801. See 47 C.F.R. §§ 54.901-904. Section 54.902 of the Commission's rules describes how interstate common line support will be calculated for exchanges acquired by rate-of-return LECs. See 47 C.F.R. § 54.902. Petition at 3. Id. Blackduck Telephone Company and Arvig Telephone Company Seek a Waiver of Section 54.305 and the Definition of ``Study Area'' in Part 36 of the Commission's Rules, Public Notice, 16 FCC
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  • into USAC. WCB staff again finds that these rules are not necessary in the public interest for the reasons set forth in the Commission's previous review, and thus recommends that the Commission eliminate these sections in the context of ongoing rulemaking proceedings. The staff also recommends that the following provisions be updated: 47 C.F.R. §§ 54.5, 54.201-207, 54.303(b)(4), 54.5, 54.623, 54.901(b)(2), and references to 47 C.F.R. §§ 54.903(a), 54.903(c), 54.903(d), 54.903(e); and that the following provisions for which funding periods have expired be removed: 47 C.F.R. §§ 54.507(a)(1)-(2), 54.604(a)(2). The rules in Part 54 regarding the rural health care and the schools and libraries programs establish universal service mechanisms that ensure that consumers have access to affordable telecommunications services. The staff
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  • Docket No. 96-45, Twentieth Reconsideration Order, FCC 00-126, para. 17, n. 25 (rel. April 7, 2000). Interstate common line support provides per-line support to offset a portion of the interstate common line revenue requirement of rate-of-return ILECs, with competitive ETCs receiving receiving per-line support equivalent to the incumbent LECs's support per the incumbent LEC's working loop. See 47 C.F.R. § 54.901. 47 C.F.R. § 1.3. Northeast Cellular Telephone Co. v. FCC, 897 F.2d 1164, 1166 (D.C. Cir. 1990). WAIT Radio v. FCC, 418 F.2d 1153, 1159 (D.C. Cir. 1969); Northeast Cellular, 897 F.2d at 1166. Northeast Cellular Telephone Co. v. FCC, 897 F.2d at 1166. Tucson Radio, Inc. v. FCC, 452 F.2d 1380, 1382 (D.C. Cir. 1971). See Application of Grande
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  • Interstate Services of Local Exchange Carriers, CC Docket No. 98-166, Second Report and Order and Further Notice of Proposed Rulemaking in CC Docket No. 00-256, Fifteenth Report and Order in CC Docket No. 96-45, and Report and Order in CC Docket Nos. 98-77 and 98-166, 16 FCC Rcd 19613, para. 128 (2001) (subsequent history omitted). See also 47 C.F.R. §§ 54.901-904. 47 C.F.R. § 54.904. 47 C.F.R. § 54.307(c). See Petition at 1-2. See Petition at 2. 47 C.F.R. § 1.3. Northeast Cellular Telephone Co. v. FCC, 897 F.2d 1164, 1166 (D.C. Cir. 1990) (Northeast Cellular). WAIT Radio v. FCC, 418 F.2d 1153, 1159 (D.C. Cir. 1969) (WAIT Radio); Northeast Cellular, 897 F.2d at 1166. Northeast Cellular, 897 F.2d at 1166.
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  • the limitations set forth in section 54.305(b). See 47 C.F.R. § 54.902. Prior to July 1, 2004, this rule also applied to long term support, which is described in section 54.303 of the Commission's rules. Since July 1, 2004, long term support has been discontinued for all carriers and, instead, has been merged into ICLS. See 47 C.F.R. §§ 54.303, 54.901. By operation of section 54.901, the elimination of LTS is offset by an increase in ICLS. See Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and Order, 12 FCC Rcd 8776, 8942-43 (1997) (Universal Service First Report and Order), as corrected by Federal-State Joint Board on Universal Service, Errata, CC Docket No. 96-45, FCC 97-157 (rel. June
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  • subject the limitations set forth in section 54.305(b). See 47 C.F.R. § 54.902. Prior to July 1, 2004, this rule also applied to long term support (LTS), which is described in section 54.303 of the Commission's rules. Since July 1, 2004, LTS has been discontinued for all carriers and, instead, has been merged into ICLS. See 47 C.F.R. §§ 54.303, 54.901. By operation of section 54.901, the elimination of LTS is offset by an increase in ICLS. See Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and Order, 12 FCC Rcd 8776, 8942-43 (1997) (Universal Service First Report and Order), as corrected by Federal-State Joint Board on Universal Service, Errata, CC Docket No. 96-45, FCC 97-157 (rel. June
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  • subject the limitations set forth in section 54.305(b). See 47 C.F.R. § 54.902. Prior to July 1, 2004, section 54.305 also applied to long term support (LTS), which is described in section 54.303 of the Commission's rules. Since July 1, 2004, LTS has been discontinued for all carriers and, instead, has been merged into ICLS. See 47 C.F.R. §§ 54.303, 54.901. By operation of section 54.901, the elimination of LTS is offset by an increase in ICLS. See Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and Order, 12 FCC Rcd 8776, 8942-43 (1997) (Universal Service First Report and Order), as corrected by Federal-State Joint Board on Universal Service, Errata, CC Docket No. 96-45, FCC 97-157 (rel. June
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  • subject the limitations set forth in section 54.305(b). See 47 C.F.R. § 54.902. Prior to July 1, 2004, this rule also applied to long term support (LTS), which is described in section 54.303 of the Commission's rules. Since July 1, 2004, LTS has been discontinued for all carriers and, instead, has been merged into ICLS. See 47 C.F.R. §§ 54.303, 54.901. By operation of section 54.901, the elimination of LTS is offset by an increase in ICLS. See Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and Order, 12 FCC Rcd 8776, 8942-43 (1997) (Universal Service First Report and Order), as corrected by Federal-State Joint Board on Universal Service, Errata, CC Docket No. 96-45, FCC 97-157 (rel. June
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  • No. 96-45, and Report and Order in CC Docket Nos. 98-77 and 98-166, 16 FCC Rcd 19613, 19688, para. 176 (2001) (subsequent history omitted) (MAG Order). 47 C.F.R. § 54.307(c). ICLS supports interstate common line costs with explicit support that is available to all ETCs. See MAG Order, 16 FCC Rcd at 19667, para. 128. See also 47 C.F.R. §§ 54.901-904. 47 C.F.R. § 1.3. Northeast Cellular Telephone Co. v. FCC, 897 F.2d 1164, 1166 (D.C. Cir. 1990) (``Northeast Cellular''). WAIT Radio v. FCC, 418 F.2d 1153, 1159 (D.C. Cir. 1969); Northeast Cellular, 897 F.2d at 1166. Northeast Cellular, 897 F.2d at 1166. Tucson Radio, Inc. v. FCC, 452 F.2d 1380, 1382 (D.C. Cir. 1971). See Highland Petition at 1-3; 47
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  • third quarter of 2003 because USAC determined that it had received Thumb Cellular's FCC Form 507, which includes line count data, after USAC's calculated filing date. For the reasons set forth below, we grant Thumb Cellular's appeal and direct USAC to implement the findings set forth in this Order. Background Thumb Cellular receives high-cost support from USAC pursuant to sections 54.901 through 54.904 of the Commission's rules, which establish the ICLS mechanism. In order to receive ICLS support, carriers must file FCC Form 507 with USAC. Thumb Cellular began receiving ICLS in July 2003, and continued to receive support payments through October of that year. In October 2003, USAC determined that Thumb Cellular's FCC Form 507, which USAC received on March
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  • to the final per-line level. Consistent with section 54.307 of the Commission's rules and subject to any revisions addressing universal service requirements that the Commission may adopt in the future, competitive ETCs serving the affected study areas will receive the same per-line support amounts and be subject to the same true-ups as PRT, Consolidated, and Frontier. We partially waive section 54.901(a) of the Commission's rules, which makes ICLS available only to rate-of-return carriers, so that PRT, Consolidated, and Frontier may convert their rate-of-return study areas to price cap regulation but continue to receive ICLS for those study areas. Because these carriers will be receiving ICLS on a frozen per-line basis, the amount of ICLS each receives will decline if their number
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  • and Regulatory Affairs, PRTC, to Thomas Navin, Chief, Wireline Competition Bureau, FCC (Sept. 22, 2006) (PRTC Letter); 47 C.F.R. § 69.104(n). ICLS available to rate-of-return LECs equals the common line revenue requirement per study area less the study area revenues obtained from end user common line charges. Because PRTC under-collected its common line revenue, it over-collected ICLS. 47 C.F.R. § 54.901(a)(1). See PRTC Letter. See Letter from Craig Davis, Director, High Cost Support Mechanism, USAC to Katherine Dourthe, Centennial Communications Corp. (June 5, 2007) (USAC Letter). See Request at 1. See Centennial Appeal. See Centennial Appeal at 3. Specifically, Centennial argues that it was being disadvantaged in the marketplace by PRTC's failure to properly charge the SLC and, by undercharging for
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  • study area in December 2008, not including any prior period true-ups, by the number of lines served in each study area as of December 31, 2008. When the ACS-pooling LECs' final frozen per-line ICLS amount is determined, any support distributed pursuant to the interim per-line ICLS amount will be trued up to the final per-line level. We partially waive section 54.901(a) of the Commission's rules, which makes ICLS available only to rate-of-return carriers, so that ACS may convert its rate-of-return study areas to price cap regulation but continue to receive ICLS for those study areas. Because ACS will be receiving ICLS on a frozen per-line basis, the amount of ICLS it receives will decline if its number of lines declines. Further,
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  • each study area in December 2008, not including any prior period true-ups, by the number of lines served in each respective study area as of December 31, 2008. When CenturyTel's final frozen per-line ICLS amount is determined, any support distributed pursuant to the interim per-line ICLS amount will be trued up to the final per-line level. We partially waive section 54.901(a) of the Commission's rules, which makes ICLS available only to rate-of-return carriers, so that CenturyTel may convert its rate-of-return study areas to price cap regulation but continue to receive ICLS for those study areas. Because CenturyTel will be receiving ICLS on a frozen per-line basis, the amount of ICLS it receives will decline if its number of lines declines. Further,
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  • December 2009, not including any prior period true-ups, by the number of lines served in each respective study area as of December 31, 2009. When the carrier's final frozen per-line ICLS amount is determined, any support distributed to that carrier pursuant to the interim per-line ICLS amount will be trued up to the final per-line level. We partially waive section 54.901(a) of the Commission's rules, which makes ICLS available only to rate-of-return carriers, so that VITELCO, FairPoint, and Windstream may convert their rate-of-return study areas to price cap regulation but continue to receive ICLS for those study areas. Because these carriers will be receiving ICLS on a frozen per-line basis, the amount of ICLS each receives will decline if their number
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  • area in December 2010, not including any prior period true-ups, by the number of lines served in each respective study area as of December 31, 2010. When Lakedale's final frozen per-line ICLS amount is determined, any support distributed to it pursuant to the interim per-line ICLS amount will be trued up to the final per-line level. We partially waive section 54.901(a) of the Commission's rules, which makes ICLS available only to rate-of-return carriers, so that Lakedale may convert its rate-of-return study areas to price cap regulation but continue to receive ICLS for those study areas. Because Lakedale will be receiving ICLS on a frozen per-line basis, the amount of ICLS it receives will decline if its number of lines declines. Further,
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  • WT Docket No. 10-208 (filed Feb. 6, 2012); see also Connect America Fund et al., WC Docket No. 10-90 et al., Report and Order and Further Notice of Proposed Rulemaking, FCC 11-161 (rel. Nov. 18, 2011) (USF/ICC Transformation Order and FNPRM). Petition at 1-2; 47 C.F.R. § 54.302. Petition at 1-2; 47 C.F.R. § 36.621(a)(4). Petition at 1-2; 47 C.F.R. §54.901(c). Petiton at 1-2. See Electronic Filing of Documents in Rulemaking Proceedings, GC Docket No. 97-113, Report and Order, 13 FCC Rcd 11322 (1998). 47 C.F.R. §§ 1.1200 et seq. See 47 C.F.R. § 1.1206(b)(2). 47 C.F.R. § 1.1206(b). PUBLIC NOTICE PUBLIC NOTICE Federal Communications Commission 445 12th St., S.W. Washington, D.C. 20554 News Media Information 202 / 418-0500 Internet: http://www.fcc.gov
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  • January 25, 2002 By the Chief, Accounting Policy Division: On November 8, 2001, the Commission released the Second Report and Order and Further Notice of Proposed Rulemaking in CC Docket No. 00-256, Fifteenth Report and Order in CC Docket No. 96-45, and Report and Order in CC Docket Nos. 98-77 and 98-166 (the Order). By this Erratum, Appendix A, section 54.901(b)(2) of the Order is corrected by replacing ``its total lines served'' with ``12.'' FEDERAL COMMUNICATIONS COMMISSION Katherine L. Schroder Chief, Accounting Policy Division Common Carrier Bureau Multi-Association Group (MAG) Plan for Regulation of Interstate Services of Non-Price Cap Incumbent Local Exchange Carriers and Interexchange Carriers, CC Docket No. 00-256, Second Report and Order and Further Notice of Proposed Rulemaking, Federal-State
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  • E. Mattey Deputy Chief Wireline Competition Bureau Under the ICLS mechanism, rate-of-return carriers receive support based on the difference between their common line revenue requirement (or costs) and their revenues from the Subscriber Line Charge (SLC), Carrier Common Line Charge (CCLC), Long Term Support, special access surcharges, and line port costs in excess of basic analog service. 47 C.F.R § 54.901(a). Procedurally, the carriers first file projected cost and revenue data, which are used to calculate monthly ICLS payments, but later file actual cost and revenue data, which are used to ``true up'' the earlier payments to the correct final amount. 47 C.F.R. § 54.903. Multi-Association Group (MAG) Plan for Regulation of Interstate Services of Non-Price Cap Incumbent Local Exchange Carriers
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  • amending paragraph (c) as follows: § 54.307 Support to a competitive eligible telecommunications carrier. (a) * * * * * * A competitive eligible telecommunications carrier serving loops in the service area of a rate-of-return carrier shall be eligible receive Interstate Common Line Support for each line it serves in the service area in accordance with the formula in § 54.901 of this part. (b) * * * For a competitive eligible telecommunications carrier serving loops in the service area of a rural incumbent local exchange carrier, as that term is defined in § 54.5 of this part, the carrier must report, by customer class, the number of working loops it serves in the service area, disaggregated by cost zone if
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  • FCC Rcd at 19680-81 para. 158. Pursuant to the phase-out provisions adopted in the MAG Order, rate-of-return carriers' CCL rates recover residual interstate loop costs only to the extent of the difference between the existing residential SLC cap and the maximum residential SLC cap of $6.50. The CCL charge largely has been phased out for price-cap carriers. 47 C.F.R. § 54.901(a). MAG Further Notice, 16 FCC Rcd at 19725-26 paras. 274-76. MAG Order, 16 FCC Rcd at 19672-73 paras. 139-41. We sought comment on whether LTS should be merged with ICLS as of July 1, 2003. MAG Further Notice, 16 FCC Rcd. at 19725-26 paras. 274-76. MAG Further Notice, 16 FCC Rcd at 19725-26 para. 274. Letter from Jeffrey E. Dupree,
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  • NECA common line pool." The Commission anticipated that many members of the common line pool-which includes nearly all rate-of-return carriers-would opt to have NECA provide data to USAC on their behalf. The Commission's ICLS rules require carriers or their agents to file projected cost and revenue data for the first ICLS funding year on March 31, 2002. Pursuant to section 54.901(a), each carrier is eligible, on a study area basis, for ICLS equal to its common line revenue requirement less its SLC revenues, CCL charge revenues, special access surcharges, line port costs in excess of basic analog service, and Long Term Support (LTS). On March 31 of each year, each rate-of-return carrier must file the data necessary to determine its projected
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  • 19667-69 paras. 128-30. Id. at 19664 para. 120. A carrier is eligible for ICLS equal to the difference between its common line revenue requirement and the total of its maximum allowable SLC revenues, transitional carrier common line charge revenues, revenues from special access surcharges, line port costs in excess of basic analog service, and Long Term Support. 47 C.F.R. § 54.901(a). Id. at 19643-44 para. 63, 19664 para. 120. Id. at 19682-83 paras. 162-64. Id. at 19681 para. 160. 47 C.F.R. § 54.903(a)(3). The Commission named the Universal Service Administrative Company (USAC) the Administrator of the ICLS mechanism. MAG Order, 16 FCC Rcd at 19681 para. 159. 47 C.F.R. § 54.903(a)(3). 47 C.F.R. § 54.903(b)(1), (5). 47 C.F.R. § 54.903(a)(4). 47
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  • See Numbering Resource Optimization Third Report and Order, 17 FCC Rcd at 268. If recovery of these costs would result in end user charges that exceed the caps established for rate of return carriers, these carriers may seek recovery of the unrecovered portion of these costs through the Universal Service interstate common line support fund (USF). See 47 C.F.R. §§ 54.901, 69.104 (n), (o) adopted in Multi-Association Group (MAG) Plan for Regulation of Interstate Services of Non-Price Cap Incumbent Local Exchange Carriers and Interexchange Carriers, CC Docket No. 00-256, Second Report and Order and Further Notice of Proposed Rulemaking, 16 FCC Rcd 19613 (2001). The USF is supported by assessments on the interstate revenues of telecommunications carriers, and carriers typically recover
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  • similar to those adopted for price cap carriers, the Commission recognized that differences between the two groups might warrant a different approach in some matters, including a different transition to more efficient, cost-based rates. Id. at 14250-52, paras. 35-36, 39. This docket remained open when the MAG plan was submitted by four LEC associations in 2000. See 47 C.F.R. § 54.901. See also MAG Order, 16 FCC Rcd at 19673-74, para. 142. MAG Order, 16 FCC Rcd at 19668-69, paras. 130-131. The Commission observed in the CALLS Order, which continued the process of access charge reform for price cap carriers, that ``identifying an amount of implicit support in our interstate access charge system is an imprecise exercise.'' CALLS Order, 15 FCC
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  • § 54.307(a)(2). See 47 U.S.C. § 254(e)(1), (e)(6). See First Report and Order, 12 FCC Rcd at 8928-8830, paras. 94-96. As part of the ETC designation process, the ETC must identify the service area for which it will provide service and seek federal support. See 47 C.F.R. §§ 36.601-36.631 (high-cost loop support), 54.301 (local switching support), 54.303 (Long Term Support), 54.901-54.904 (interstate common line support). The term ``embedded costs'' refers to a carrier's historic costs, as reflected in its books. We note that some small incumbent LECs (known as average schedule companies) receive high-cost support based on formulas developed by NECA using data from a sample group of average schedule carriers and from similarly situated companies that file cost data. See,
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  • Western Wireless Comments, Attachment J at 4; see id. at Attachment B at 4-6 (providing data to support contention that subscribers are ``substituting wireless for traditional wireline service''). See Western Wireless Comments at 18. See Western Wireless Comments, Attachment J at 7-8. See 47 C.F.R §§ 36.601, et seq. (high-cost loop support), 54.301 (local switching support), 54.303 (long term support), 54.901, et seq. (interstate common line support). Interstate access support also is available to rural carriers subject to price cap regulation of their interstate access rates. See 47 C.F.R. § 54.801, et seq. The Joint Board does not recommend limiting the scope of interstate access support at this time, because the interstate access support methodology prevents support increases due to competitive
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  • of Small Telecommunications Companies (OPASTCO), TDS Telecommunications Corporation (TDS Telecom), United States Telecom Association (USTA), and Western Alliance on behalf of their member carriers. Id. at 2. Because these organizations represent the overwhelming majority of rate-of-return carriers, the waiver applies to all rate-of-return carriers. See infra note 99 and accompanying text. See 47 C.F.R. § 69.104(q). See 47 C.F.R. § 54.901. The Commission's separations rules allocate one-fourth of common line costs to the interstate jurisdiction. See 47 C.F.R. § 36.154(c). In this proceeding, we address interstate costs only. See 47 C.F.R. § 69.104. Under certain circumstances, rate-of-return carriers recover a special access surcharge from customers of private line or Wide Area Telecommunications Service (WATS) services prior to assessing the SLC. See
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  • to an incumbent carrier differs according to the size, population density, and topography of the incumbent carrier's study area, whether the costs of service are allocated to the state or federal jurisdiction, and whether the incumbent carrier's interstate access service is subject to price cap or rate-of-return regulation.''). See supra note 1; 47 C.F.R. sections 36.601, et seq., 54.301, and 54.901. Moreover, because high-cost support generally is calculated based on costs averaged over an entire study area, a carrier serving a single, high-cost exchange will have higher costs than one serving multiple exchanges with varying costs. See Rural Independent Competitive Alliance Comments in CC Docket No. 96-45, FCC 03J-1 (May 5, 2003), at 1. The Rural Independent Competitive Alliance is a
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  • cap companies) of 19 lines or more per square mile, for carriers newly electing price caps Amend §61.45(b)(1)(ii) so ``X'' = GDP-PI effective immediately for carriers electing this plan Ensure against harm to consumers by preserving federal universal service support: Avoid ``revenue shock'' when ATS rates are reduced by creating a ``TS Additive'' to an electing carrier's interstate support: Amend §54.901 to permit electing carriers to move their ATS rates to the new Target Rate (described above) on a revenue-neutral basis; where an electing carrier's existing ATS rate is above the Target Rate, allow such carrier to recover the difference between the Target Rate and their existing revenue requirement through a ``TS Additive'' to ICLS; then freeze the TS Additive on
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  • Western Wireless Comments, Attachment J at 4; see id. at Attachment B at 4-6 (providing data to support contention that subscribers are ``substituting wireless for traditional wireline service''). See Western Wireless Comments at 18. See Western Wireless Comments, Attachment J at 7-8. See 47 C.F.R §§ 36.601, et seq. (high-cost loop support), 54.301 (local switching support), 54.303 (long term support), 54.901, et seq. (interstate common line support). Interstate access support also is available to rural carriers subject to price cap regulation of their interstate access rates. See 47 C.F.R. § 54.801, et seq. The Joint Board does not recommend limiting the scope of interstate access support at this time, because the interstate access support methodology prevents support increases due to competitive
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  • subject the limitations set forth in section 54.305(b). See 47 C.F.R. § 54.902. Prior to July 1, 2004, section 54.305(b) also applied to long term support (LTS), which is described in section 54.303 of the Commission's rules. Since July 1, 2004, LTS has been discontinued for all carriers and, instead, has been merged into ICLS. See 47 C.F.R. §§ 54.303, 54.901. By operation of section 54.901, the elimination of LTS is offset by an increase in ICLS. See Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and Order, 12 FCC Rcd 8776, 8942-43, para. 308 (1997) (subsequent history omitted). Rural carriers receive high-cost loop support based on the extent to which their reported average cost per loop exceeds
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  • costs. After the grant of its forbearance request becomes effective, ACS will no longer be required to calculate its common line revenue requirement per study area pursuant to Part 69 of the Commission's rules. Therefore, ACS's ICLS amounts will no longer be calculated in the same manner as is ICLS for other rate-of-return regulated incumbent LEC ETCs pursuant to section 54.901(a). GCI has proposed, and ACS has agreed, that, as a condition of granting its forbearance request, ACS's ICLS amounts would be set at the current competitive ETC per-line level. After grant of the forbearance request, all ETCs in ACS's Anchorage study area, including ACS, would receive ICLS at the same per-line support amounts. We find that ACS's ICLS shall be
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  • will be trued up to the final per-line level. Consistent with section 54.307 of the Commission's rules and subject to any revisions addressing universal service requirements that the Commission may adopt in the future, competitive ETCs serving Windstream's study areas will receive the same per-line support amounts and be subject to the same true-ups as Windstream. We partially waive section 54.901(a) of our rules, which makes ICLS available only to rate-of-return carriers, so that Windstream may convert its rate-of-return study areas to price cap regulation but continue to receive ICLS for those study areas. Because Windstream will be receiving ICLS on a frozen per-line basis, the amount of ICLS it receives will decline if its number of lines declines. Further, we
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  • of administering universal service programs. It collects contributions to the universal service fund and distributes universal service support in accordance with the Commission's rules and under the Commission's oversight. Interim Cap Order, 23 FCC Rcd at 8846, paras. 27-28; see also 47 C.F.R. §§ 54.307 (portability of support to competitive ETCs), 54.807 (calculation of Interstate Access Support for competitive ETCs), 54.901(b) (calculation of Interstate Common Line Support for competitive ETCs). Interim Cap Order, 23 FCC Rcd at 8846, paras. 27-28. Id. at 8846, 8850, paras. 26, 39. See generally Verizon Wireless Merger Order, 23 FCC Rcd 17444. See generally Sprint Nextel Merger Order, 23 FCC Rcd 17570. National Broadband Plan at 147. Verizon Wireless Merger Order, 23 FCC Rcd at 17529-32,
• http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-10-155A1_Rcd.pdf
  • purpose of administering universal service programs. It collects contributions to the universal service fund and distributes universal service support in accordance with the Commission's rules and under the Commission's oversight. 7Interim Cap Order, 23 FCC Rcd at 8846, paras. 27-28; see also47 C.F.R. §§ 54.307 (portability of support to competitive ETCs), 54.807 (calculation of Interstate Access Support for competitive ETCs), 54.901(b) (calculation of Interstate Common Line Support for competitive ETCs). 8Interim Cap Order, 23 FCC Rcd at 8846, paras. 27-28. 9Id.at 8846, 8850, paras. 26, 39. 12855 Federal Communications Commission FCC 10-155 and partnerships of ALLTEL from Atlantis Holdings LLC to Verizon Wireless.10On that same day, in the Sprint Nextel Merger Order, the Commission also approved, with conditions, the transfer of
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  • of the universal service fund. USAC collects contributions to the universal service fund and distributes universal service support in accordance with the Commission's rules and under the Commission's oversight. Interim Cap Order, 23 FCC Rcd at 8846, paras. 27-28; see also 47 C.F.R. §§ 54.307 (portability of support to competitive ETCs), 54.807 (calculation of Interstate Access Support for competitive ETCs), 54.901(b) (calculation of Interstate Common Line Support for competitive ETCs). Interim Cap Order, 23 FCC Rcd at 8846, paras. 27-28. Id. at 8846, 8850, paras. 26, 39. High-Cost Universal Service Support, Federal-State Joint Board on Universal Service, Request for Review of Decision of Universal Service Administrator by Corr Wireless Communications, LLC, WC Docket No. 05-337, CC Docket No. 96-45, Order and
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  • 54.309. Interstate access support (IAS) provides support for price cap carriers to offset certain reductions in interstate access charges. See 47 C.F.R. § 54.800-809. Interstate common line support (ICLS) provides support to rate-of-return carriers, to the extent that subscriber line charge (SLC) caps do not permit such carriers to recover their interstate common line revenue requirements. See 47 C.F.R. § 54.901- 904. 6 See National Broadband Plan at 141. 7 Small carriers typically receive considerably more per-line support than larger carriers serving high-cost geographic areas. 8 See Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and Order, 12 FCC Rcd 8776, 8899, para. 224 (1997) (Universal Service First Report and Order) (subsequent history omitted). 9 Telecommunications Act of
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  • the universal service support mechanisms. Specifically, we propose that USAC routinely provide to the Commission the data that it collects from both incumbent LECs and competitive ETCs for calculating high-cost payments, specifically, high-cost loop support, interstate common line support, local switching support, safety net, and safety valve support payments, pending any elimination of any of those programs. For example, section 54.901 of the Commission's rules requires USAC to calculate ICLS support as the difference between the common line revenue requirement and the sum of end-user common line charges and certain other revenues. Similarly, section 54.301 of the Commission's rules requires USAC to collect local switching revenue requirement and weighting factor data for calculating LSS. We propose that USAC provide to the
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  • is responsible for Part 36 Subpart F-Universal Service Fund (HCLS) data collection under the Commission's current rules, NECA analyzes the cost data, performs certain calculations, and then transmits that information to USAC for use in determining HCLS payments to rural carriers, but USAC does not have access to the underlying Part 36 data that carriers submit to NECA. Similarly, section 54.901 of the Commission's rules requires USAC to calculate ICLS support as the difference between the common line revenue requirement and the sum of end-user common line charges and certain other revenues. Yet NECA calculates the common line revenue requirement and submits the results of its analysis to USAC; USAC does not have access to the underlying information that carriers submit
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  • the amount of interstate-allocated loop costs that such carriers must recover through carrier common line charges. See First Report and Order, 12 FCC Rcd at 9163-9165. See 47 C.F.R. §§ 54.801-809. Sections 54.801-54.802 of the Commission's rules describes how interstate access support will be calculated for exchanges acquired by price cap LECs. 47 C.F.R. § 54.801. See 47 C.F.R. §§ 54.901-904. Section 54.902 of the Commission's rules describes how interstate common line support will be calculated for exchanges acquired by rate-of-return LECs. See 47 C.F.R. § 54.902. Petition at 3. Id. Blackduck Telephone Company and Arvig Telephone Company Seek a Waiver of Section 54.305 and the Definition of ``Study Area'' in Part 36 of the Commission's Rules, Public Notice, 16 FCC
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  • into USAC. WCB staff again finds that these rules are not necessary in the public interest for the reasons set forth in the Commission's previous review, and thus recommends that the Commission eliminate these sections in the context of ongoing rulemaking proceedings. The staff also recommends that the following provisions be updated: 47 C.F.R. §§ 54.5, 54.201-207, 54.303(b)(4), 54.5, 54.623, 54.901(b)(2), and references to 47 C.F.R. §§ 54.903(a), 54.903(c), 54.903(d), 54.903(e); and that the following provisions for which funding periods have expired be removed: 47 C.F.R. §§ 54.507(a)(1)-(2), 54.604(a)(2). The rules in Part 54 regarding the rural health care and the schools and libraries programs establish universal service mechanisms that ensure that consumers have access to affordable telecommunications services. The staff
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  • Docket No. 96-45, Twentieth Reconsideration Order, FCC 00-126, para. 17, n. 25 (rel. April 7, 2000). Interstate common line support provides per-line support to offset a portion of the interstate common line revenue requirement of rate-of-return ILECs, with competitive ETCs receiving receiving per-line support equivalent to the incumbent LECs's support per the incumbent LEC's working loop. See 47 C.F.R. § 54.901. 47 C.F.R. § 1.3. Northeast Cellular Telephone Co. v. FCC, 897 F.2d 1164, 1166 (D.C. Cir. 1990). WAIT Radio v. FCC, 418 F.2d 1153, 1159 (D.C. Cir. 1969); Northeast Cellular, 897 F.2d at 1166. Northeast Cellular Telephone Co. v. FCC, 897 F.2d at 1166. Tucson Radio, Inc. v. FCC, 452 F.2d 1380, 1382 (D.C. Cir. 1971). See Application of Grande
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  • Interstate Services of Local Exchange Carriers, CC Docket No. 98-166, Second Report and Order and Further Notice of Proposed Rulemaking in CC Docket No. 00-256, Fifteenth Report and Order in CC Docket No. 96-45, and Report and Order in CC Docket Nos. 98-77 and 98-166, 16 FCC Rcd 19613, para. 128 (2001) (subsequent history omitted). See also 47 C.F.R. §§ 54.901-904. 47 C.F.R. § 54.904. 47 C.F.R. § 54.307(c). See Petition at 1-2. See Petition at 2. 47 C.F.R. § 1.3. Northeast Cellular Telephone Co. v. FCC, 897 F.2d 1164, 1166 (D.C. Cir. 1990) (Northeast Cellular). WAIT Radio v. FCC, 418 F.2d 1153, 1159 (D.C. Cir. 1969) (WAIT Radio); Northeast Cellular, 897 F.2d at 1166. Northeast Cellular, 897 F.2d at 1166.
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  • the limitations set forth in section 54.305(b). See 47 C.F.R. § 54.902. Prior to July 1, 2004, this rule also applied to long term support, which is described in section 54.303 of the Commission's rules. Since July 1, 2004, long term support has been discontinued for all carriers and, instead, has been merged into ICLS. See 47 C.F.R. §§ 54.303, 54.901. By operation of section 54.901, the elimination of LTS is offset by an increase in ICLS. See Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and Order, 12 FCC Rcd 8776, 8942-43 (1997) (Universal Service First Report and Order), as corrected by Federal-State Joint Board on Universal Service, Errata, CC Docket No. 96-45, FCC 97-157 (rel. June
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  • subject the limitations set forth in section 54.305(b). See 47 C.F.R. § 54.902. Prior to July 1, 2004, this rule also applied to long term support (LTS), which is described in section 54.303 of the Commission's rules. Since July 1, 2004, LTS has been discontinued for all carriers and, instead, has been merged into ICLS. See 47 C.F.R. §§ 54.303, 54.901. By operation of section 54.901, the elimination of LTS is offset by an increase in ICLS. See Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and Order, 12 FCC Rcd 8776, 8942-43 (1997) (Universal Service First Report and Order), as corrected by Federal-State Joint Board on Universal Service, Errata, CC Docket No. 96-45, FCC 97-157 (rel. June
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  • subject the limitations set forth in section 54.305(b). See 47 C.F.R. § 54.902. Prior to July 1, 2004, section 54.305 also applied to long term support (LTS), which is described in section 54.303 of the Commission's rules. Since July 1, 2004, LTS has been discontinued for all carriers and, instead, has been merged into ICLS. See 47 C.F.R. §§ 54.303, 54.901. By operation of section 54.901, the elimination of LTS is offset by an increase in ICLS. See Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and Order, 12 FCC Rcd 8776, 8942-43 (1997) (Universal Service First Report and Order), as corrected by Federal-State Joint Board on Universal Service, Errata, CC Docket No. 96-45, FCC 97-157 (rel. June
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  • subject the limitations set forth in section 54.305(b). See 47 C.F.R. § 54.902. Prior to July 1, 2004, this rule also applied to long term support (LTS), which is described in section 54.303 of the Commission's rules. Since July 1, 2004, LTS has been discontinued for all carriers and, instead, has been merged into ICLS. See 47 C.F.R. §§ 54.303, 54.901. By operation of section 54.901, the elimination of LTS is offset by an increase in ICLS. See Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and Order, 12 FCC Rcd 8776, 8942-43 (1997) (Universal Service First Report and Order), as corrected by Federal-State Joint Board on Universal Service, Errata, CC Docket No. 96-45, FCC 97-157 (rel. June
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  • No. 96-45, and Report and Order in CC Docket Nos. 98-77 and 98-166, 16 FCC Rcd 19613, 19688, para. 176 (2001) (subsequent history omitted) (MAG Order). 47 C.F.R. § 54.307(c). ICLS supports interstate common line costs with explicit support that is available to all ETCs. See MAG Order, 16 FCC Rcd at 19667, para. 128. See also 47 C.F.R. §§ 54.901-904. 47 C.F.R. § 1.3. Northeast Cellular Telephone Co. v. FCC, 897 F.2d 1164, 1166 (D.C. Cir. 1990) (``Northeast Cellular''). WAIT Radio v. FCC, 418 F.2d 1153, 1159 (D.C. Cir. 1969); Northeast Cellular, 897 F.2d at 1166. Northeast Cellular, 897 F.2d at 1166. Tucson Radio, Inc. v. FCC, 452 F.2d 1380, 1382 (D.C. Cir. 1971). See Highland Petition at 1-3; 47
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  • third quarter of 2003 because USAC determined that it had received Thumb Cellular's FCC Form 507, which includes line count data, after USAC's calculated filing date. For the reasons set forth below, we grant Thumb Cellular's appeal and direct USAC to implement the findings set forth in this Order. Background Thumb Cellular receives high-cost support from USAC pursuant to sections 54.901 through 54.904 of the Commission's rules, which establish the ICLS mechanism. In order to receive ICLS support, carriers must file FCC Form 507 with USAC. Thumb Cellular began receiving ICLS in July 2003, and continued to receive support payments through October of that year. In October 2003, USAC determined that Thumb Cellular's FCC Form 507, which USAC received on March
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  • to the final per-line level. Consistent with section 54.307 of the Commission's rules and subject to any revisions addressing universal service requirements that the Commission may adopt in the future, competitive ETCs serving the affected study areas will receive the same per-line support amounts and be subject to the same true-ups as PRT, Consolidated, and Frontier. We partially waive section 54.901(a) of the Commission's rules, which makes ICLS available only to rate-of-return carriers, so that PRT, Consolidated, and Frontier may convert their rate-of-return study areas to price cap regulation but continue to receive ICLS for those study areas. Because these carriers will be receiving ICLS on a frozen per-line basis, the amount of ICLS each receives will decline if their number
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  • and Regulatory Affairs, PRTC, to Thomas Navin, Chief, Wireline Competition Bureau, FCC (Sept. 22, 2006) (PRTC Letter); 47 C.F.R. § 69.104(n). ICLS available to rate-of-return LECs equals the common line revenue requirement per study area less the study area revenues obtained from end user common line charges. Because PRTC under-collected its common line revenue, it over-collected ICLS. 47 C.F.R. § 54.901(a)(1). See PRTC Letter. See Letter from Craig Davis, Director, High Cost Support Mechanism, USAC to Katherine Dourthe, Centennial Communications Corp. (June 5, 2007) (USAC Letter). See Request at 1. See Centennial Appeal. See Centennial Appeal at 3. Specifically, Centennial argues that it was being disadvantaged in the marketplace by PRTC's failure to properly charge the SLC and, by undercharging for
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  • study area in December 2008, not including any prior period true-ups, by the number of lines served in each study area as of December 31, 2008. When the ACS-pooling LECs' final frozen per-line ICLS amount is determined, any support distributed pursuant to the interim per-line ICLS amount will be trued up to the final per-line level. We partially waive section 54.901(a) of the Commission's rules, which makes ICLS available only to rate-of-return carriers, so that ACS may convert its rate-of-return study areas to price cap regulation but continue to receive ICLS for those study areas. Because ACS will be receiving ICLS on a frozen per-line basis, the amount of ICLS it receives will decline if its number of lines declines. Further,
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  • each study area in December 2008, not including any prior period true-ups, by the number of lines served in each respective study area as of December 31, 2008. When CenturyTel's final frozen per-line ICLS amount is determined, any support distributed pursuant to the interim per-line ICLS amount will be trued up to the final per-line level. We partially waive section 54.901(a) of the Commission's rules, which makes ICLS available only to rate-of-return carriers, so that CenturyTel may convert its rate-of-return study areas to price cap regulation but continue to receive ICLS for those study areas. Because CenturyTel will be receiving ICLS on a frozen per-line basis, the amount of ICLS it receives will decline if its number of lines declines. Further,
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  • December 2009, not including any prior period true-ups, by the number of lines served in each respective study area as of December 31, 2009. When the carrier's final frozen per-line ICLS amount is determined, any support distributed to that carrier pursuant to the interim per-line ICLS amount will be trued up to the final per-line level. We partially waive section 54.901(a) of the Commission's rules, which makes ICLS available only to rate-of-return carriers, so that VITELCO, FairPoint, and Windstream may convert their rate-of-return study areas to price cap regulation but continue to receive ICLS for those study areas. Because these carriers will be receiving ICLS on a frozen per-line basis, the amount of ICLS each receives will decline if their number
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  • area in December 2010, not including any prior period true-ups, by the number of lines served in each respective study area as of December 31, 2010. When Lakedale's final frozen per-line ICLS amount is determined, any support distributed to it pursuant to the interim per-line ICLS amount will be trued up to the final per-line level. We partially waive section 54.901(a) of the Commission's rules, which makes ICLS available only to rate-of-return carriers, so that Lakedale may convert its rate-of-return study areas to price cap regulation but continue to receive ICLS for those study areas. Because Lakedale will be receiving ICLS on a frozen per-line basis, the amount of ICLS it receives will decline if its number of lines declines. Further,
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  • WT Docket No. 10-208 (filed Feb. 6, 2012); see also Connect America Fund et al., WC Docket No. 10-90 et al., Report and Order and Further Notice of Proposed Rulemaking, FCC 11-161 (rel. Nov. 18, 2011) (USF/ICC Transformation Order and FNPRM). Petition at 1-2; 47 C.F.R. § 54.302. Petition at 1-2; 47 C.F.R. § 36.621(a)(4). Petition at 1-2; 47 C.F.R. §54.901(c). Petiton at 1-2. See Electronic Filing of Documents in Rulemaking Proceedings, GC Docket No. 97-113, Report and Order, 13 FCC Rcd 11322 (1998). 47 C.F.R. §§ 1.1200 et seq. See 47 C.F.R. § 1.1206(b)(2). 47 C.F.R. § 1.1206(b). PUBLIC NOTICE PUBLIC NOTICE Federal Communications Commission 445 12th St., S.W. Washington, D.C. 20554 News Media Information 202 / 418-0500 Internet: http://www.fcc.gov
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  • 1, 2012, to June 30, 2013. For the reasons set forth below, we approve the interim 2011 formulas to be effective as of January 1, 2012, and approve the revised 2012 average schedule formulas filed on May 25, 2012, to become effective on July 1, 2012, for one year. Interim Modification. In the USF/ICC Transformation Order, the Commission revised section 54.901(c) of the Commission's rules to limit the amount of corporate operations expenses includable in the calculation of ICLS. In the 2011 Interim Modification Letter, NECA proposed interim formulas to be effective from January 1, 2012, through June 30, 2012, to implement the revised corporate operations limitation. NECA developed an adjustment ratio reflecting the differences resulting from the application of the
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  • January 25, 2002 By the Chief, Accounting Policy Division: On November 8, 2001, the Commission released the Second Report and Order and Further Notice of Proposed Rulemaking in CC Docket No. 00-256, Fifteenth Report and Order in CC Docket No. 96-45, and Report and Order in CC Docket Nos. 98-77 and 98-166 (the Order). By this Erratum, Appendix A, section 54.901(b)(2) of the Order is corrected by replacing ``its total lines served'' with ``12.'' FEDERAL COMMUNICATIONS COMMISSION Katherine L. Schroder Chief, Accounting Policy Division Common Carrier Bureau Multi-Association Group (MAG) Plan for Regulation of Interstate Services of Non-Price Cap Incumbent Local Exchange Carriers and Interexchange Carriers, CC Docket No. 00-256, Second Report and Order and Further Notice of Proposed Rulemaking, Federal-State
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  • E. Mattey Deputy Chief Wireline Competition Bureau Under the ICLS mechanism, rate-of-return carriers receive support based on the difference between their common line revenue requirement (or costs) and their revenues from the Subscriber Line Charge (SLC), Carrier Common Line Charge (CCLC), Long Term Support, special access surcharges, and line port costs in excess of basic analog service. 47 C.F.R § 54.901(a). Procedurally, the carriers first file projected cost and revenue data, which are used to calculate monthly ICLS payments, but later file actual cost and revenue data, which are used to ``true up'' the earlier payments to the correct final amount. 47 C.F.R. § 54.903. Multi-Association Group (MAG) Plan for Regulation of Interstate Services of Non-Price Cap Incumbent Local Exchange Carriers
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  • amending paragraph (c) as follows: § 54.307 Support to a competitive eligible telecommunications carrier. (a) * * * * * * A competitive eligible telecommunications carrier serving loops in the service area of a rate-of-return carrier shall be eligible receive Interstate Common Line Support for each line it serves in the service area in accordance with the formula in § 54.901 of this part. (b) * * * For a competitive eligible telecommunications carrier serving loops in the service area of a rural incumbent local exchange carrier, as that term is defined in § 54.5 of this part, the carrier must report, by customer class, the number of working loops it serves in the service area, disaggregated by cost zone if
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  • FCC Rcd at 19680-81 para. 158. Pursuant to the phase-out provisions adopted in the MAG Order, rate-of-return carriers' CCL rates recover residual interstate loop costs only to the extent of the difference between the existing residential SLC cap and the maximum residential SLC cap of $6.50. The CCL charge largely has been phased out for price-cap carriers. 47 C.F.R. § 54.901(a). MAG Further Notice, 16 FCC Rcd at 19725-26 paras. 274-76. MAG Order, 16 FCC Rcd at 19672-73 paras. 139-41. We sought comment on whether LTS should be merged with ICLS as of July 1, 2003. MAG Further Notice, 16 FCC Rcd. at 19725-26 paras. 274-76. MAG Further Notice, 16 FCC Rcd at 19725-26 para. 274. Letter from Jeffrey E. Dupree,
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  • NECA common line pool." The Commission anticipated that many members of the common line pool-which includes nearly all rate-of-return carriers-would opt to have NECA provide data to USAC on their behalf. The Commission's ICLS rules require carriers or their agents to file projected cost and revenue data for the first ICLS funding year on March 31, 2002. Pursuant to section 54.901(a), each carrier is eligible, on a study area basis, for ICLS equal to its common line revenue requirement less its SLC revenues, CCL charge revenues, special access surcharges, line port costs in excess of basic analog service, and Long Term Support (LTS). On March 31 of each year, each rate-of-return carrier must file the data necessary to determine its projected
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  • 19667-69 paras. 128-30. Id. at 19664 para. 120. A carrier is eligible for ICLS equal to the difference between its common line revenue requirement and the total of its maximum allowable SLC revenues, transitional carrier common line charge revenues, revenues from special access surcharges, line port costs in excess of basic analog service, and Long Term Support. 47 C.F.R. § 54.901(a). Id. at 19643-44 para. 63, 19664 para. 120. Id. at 19682-83 paras. 162-64. Id. at 19681 para. 160. 47 C.F.R. § 54.903(a)(3). The Commission named the Universal Service Administrative Company (USAC) the Administrator of the ICLS mechanism. MAG Order, 16 FCC Rcd at 19681 para. 159. 47 C.F.R. § 54.903(a)(3). 47 C.F.R. § 54.903(b)(1), (5). 47 C.F.R. § 54.903(a)(4). 47
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  • See Numbering Resource Optimization Third Report and Order, 17 FCC Rcd at 268. If recovery of these costs would result in end user charges that exceed the caps established for rate of return carriers, these carriers may seek recovery of the unrecovered portion of these costs through the Universal Service interstate common line support fund (USF). See 47 C.F.R. §§ 54.901, 69.104 (n), (o) adopted in Multi-Association Group (MAG) Plan for Regulation of Interstate Services of Non-Price Cap Incumbent Local Exchange Carriers and Interexchange Carriers, CC Docket No. 00-256, Second Report and Order and Further Notice of Proposed Rulemaking, 16 FCC Rcd 19613 (2001). The USF is supported by assessments on the interstate revenues of telecommunications carriers, and carriers typically recover
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  • similar to those adopted for price cap carriers, the Commission recognized that differences between the two groups might warrant a different approach in some matters, including a different transition to more efficient, cost-based rates. Id. at 14250-52, paras. 35-36, 39. This docket remained open when the MAG plan was submitted by four LEC associations in 2000. See 47 C.F.R. § 54.901. See also MAG Order, 16 FCC Rcd at 19673-74, para. 142. MAG Order, 16 FCC Rcd at 19668-69, paras. 130-131. The Commission observed in the CALLS Order, which continued the process of access charge reform for price cap carriers, that ``identifying an amount of implicit support in our interstate access charge system is an imprecise exercise.'' CALLS Order, 15 FCC
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  • § 54.307(a)(2). See 47 U.S.C. § 254(e)(1), (e)(6). See First Report and Order, 12 FCC Rcd at 8928-8830, paras. 94-96. As part of the ETC designation process, the ETC must identify the service area for which it will provide service and seek federal support. See 47 C.F.R. §§ 36.601-36.631 (high-cost loop support), 54.301 (local switching support), 54.303 (Long Term Support), 54.901-54.904 (interstate common line support). The term ``embedded costs'' refers to a carrier's historic costs, as reflected in its books. We note that some small incumbent LECs (known as average schedule companies) receive high-cost support based on formulas developed by NECA using data from a sample group of average schedule carriers and from similarly situated companies that file cost data. See,
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  • Western Wireless Comments, Attachment J at 4; see id. at Attachment B at 4-6 (providing data to support contention that subscribers are ``substituting wireless for traditional wireline service''). See Western Wireless Comments at 18. See Western Wireless Comments, Attachment J at 7-8. See 47 C.F.R §§ 36.601, et seq. (high-cost loop support), 54.301 (local switching support), 54.303 (long term support), 54.901, et seq. (interstate common line support). Interstate access support also is available to rural carriers subject to price cap regulation of their interstate access rates. See 47 C.F.R. § 54.801, et seq. The Joint Board does not recommend limiting the scope of interstate access support at this time, because the interstate access support methodology prevents support increases due to competitive
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  • of Small Telecommunications Companies (OPASTCO), TDS Telecommunications Corporation (TDS Telecom), United States Telecom Association (USTA), and Western Alliance on behalf of their member carriers. Id. at 2. Because these organizations represent the overwhelming majority of rate-of-return carriers, the waiver applies to all rate-of-return carriers. See infra note 99 and accompanying text. See 47 C.F.R. § 69.104(q). See 47 C.F.R. § 54.901. The Commission's separations rules allocate one-fourth of common line costs to the interstate jurisdiction. See 47 C.F.R. § 36.154(c). In this proceeding, we address interstate costs only. See 47 C.F.R. § 69.104. Under certain circumstances, rate-of-return carriers recover a special access surcharge from customers of private line or Wide Area Telecommunications Service (WATS) services prior to assessing the SLC. See
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  • to an incumbent carrier differs according to the size, population density, and topography of the incumbent carrier's study area, whether the costs of service are allocated to the state or federal jurisdiction, and whether the incumbent carrier's interstate access service is subject to price cap or rate-of-return regulation.''). See supra note 1; 47 C.F.R. sections 36.601, et seq., 54.301, and 54.901. Moreover, because high-cost support generally is calculated based on costs averaged over an entire study area, a carrier serving a single, high-cost exchange will have higher costs than one serving multiple exchanges with varying costs. See Rural Independent Competitive Alliance Comments in CC Docket No. 96-45, FCC 03J-1 (May 5, 2003), at 1. The Rural Independent Competitive Alliance is a
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  • cap companies) of 19 lines or more per square mile, for carriers newly electing price caps Amend §61.45(b)(1)(ii) so ``X'' = GDP-PI effective immediately for carriers electing this plan Ensure against harm to consumers by preserving federal universal service support: Avoid ``revenue shock'' when ATS rates are reduced by creating a ``TS Additive'' to an electing carrier's interstate support: Amend §54.901 to permit electing carriers to move their ATS rates to the new Target Rate (described above) on a revenue-neutral basis; where an electing carrier's existing ATS rate is above the Target Rate, allow such carrier to recover the difference between the Target Rate and their existing revenue requirement through a ``TS Additive'' to ICLS; then freeze the TS Additive on
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  • Western Wireless Comments, Attachment J at 4; see id. at Attachment B at 4-6 (providing data to support contention that subscribers are ``substituting wireless for traditional wireline service''). See Western Wireless Comments at 18. See Western Wireless Comments, Attachment J at 7-8. See 47 C.F.R §§ 36.601, et seq. (high-cost loop support), 54.301 (local switching support), 54.303 (long term support), 54.901, et seq. (interstate common line support). Interstate access support also is available to rural carriers subject to price cap regulation of their interstate access rates. See 47 C.F.R. § 54.801, et seq. The Joint Board does not recommend limiting the scope of interstate access support at this time, because the interstate access support methodology prevents support increases due to competitive
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  • subject the limitations set forth in section 54.305(b). See 47 C.F.R. § 54.902. Prior to July 1, 2004, section 54.305(b) also applied to long term support (LTS), which is described in section 54.303 of the Commission's rules. Since July 1, 2004, LTS has been discontinued for all carriers and, instead, has been merged into ICLS. See 47 C.F.R. §§ 54.303, 54.901. By operation of section 54.901, the elimination of LTS is offset by an increase in ICLS. See Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and Order, 12 FCC Rcd 8776, 8942-43, para. 308 (1997) (subsequent history omitted). Rural carriers receive high-cost loop support based on the extent to which their reported average cost per loop exceeds
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  • costs. After the grant of its forbearance request becomes effective, ACS will no longer be required to calculate its common line revenue requirement per study area pursuant to Part 69 of the Commission's rules. Therefore, ACS's ICLS amounts will no longer be calculated in the same manner as is ICLS for other rate-of-return regulated incumbent LEC ETCs pursuant to section 54.901(a). GCI has proposed, and ACS has agreed, that, as a condition of granting its forbearance request, ACS's ICLS amounts would be set at the current competitive ETC per-line level. After grant of the forbearance request, all ETCs in ACS's Anchorage study area, including ACS, would receive ICLS at the same per-line support amounts. We find that ACS's ICLS shall be
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  • will be trued up to the final per-line level. Consistent with section 54.307 of the Commission's rules and subject to any revisions addressing universal service requirements that the Commission may adopt in the future, competitive ETCs serving Windstream's study areas will receive the same per-line support amounts and be subject to the same true-ups as Windstream. We partially waive section 54.901(a) of our rules, which makes ICLS available only to rate-of-return carriers, so that Windstream may convert its rate-of-return study areas to price cap regulation but continue to receive ICLS for those study areas. Because Windstream will be receiving ICLS on a frozen per-line basis, the amount of ICLS it receives will decline if its number of lines declines. Further, we
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  • of administering universal service programs. It collects contributions to the universal service fund and distributes universal service support in accordance with the Commission's rules and under the Commission's oversight. Interim Cap Order, 23 FCC Rcd at 8846, paras. 27-28; see also 47 C.F.R. §§ 54.307 (portability of support to competitive ETCs), 54.807 (calculation of Interstate Access Support for competitive ETCs), 54.901(b) (calculation of Interstate Common Line Support for competitive ETCs). Interim Cap Order, 23 FCC Rcd at 8846, paras. 27-28. Id. at 8846, 8850, paras. 26, 39. See generally Verizon Wireless Merger Order, 23 FCC Rcd 17444. See generally Sprint Nextel Merger Order, 23 FCC Rcd 17570. National Broadband Plan at 147. Verizon Wireless Merger Order, 23 FCC Rcd at 17529-32,
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  • purpose of administering universal service programs. It collects contributions to the universal service fund and distributes universal service support in accordance with the Commission's rules and under the Commission's oversight. 7Interim Cap Order, 23 FCC Rcd at 8846, paras. 27-28; see also47 C.F.R. §§ 54.307 (portability of support to competitive ETCs), 54.807 (calculation of Interstate Access Support for competitive ETCs), 54.901(b) (calculation of Interstate Common Line Support for competitive ETCs). 8Interim Cap Order, 23 FCC Rcd at 8846, paras. 27-28. 9Id.at 8846, 8850, paras. 26, 39. 12855 Federal Communications Commission FCC 10-155 and partnerships of ALLTEL from Atlantis Holdings LLC to Verizon Wireless.10On that same day, in the Sprint Nextel Merger Order, the Commission also approved, with conditions, the transfer of
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  • of the universal service fund. USAC collects contributions to the universal service fund and distributes universal service support in accordance with the Commission's rules and under the Commission's oversight. Interim Cap Order, 23 FCC Rcd at 8846, paras. 27-28; see also 47 C.F.R. §§ 54.307 (portability of support to competitive ETCs), 54.807 (calculation of Interstate Access Support for competitive ETCs), 54.901(b) (calculation of Interstate Common Line Support for competitive ETCs). Interim Cap Order, 23 FCC Rcd at 8846, paras. 27-28. Id. at 8846, 8850, paras. 26, 39. High-Cost Universal Service Support, Federal-State Joint Board on Universal Service, Request for Review of Decision of Universal Service Administrator by Corr Wireless Communications, LLC, WC Docket No. 05-337, CC Docket No. 96-45, Order and
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  • 54.309. Interstate access support (IAS) provides support for price cap carriers to offset certain reductions in interstate access charges. See 47 C.F.R. § 54.800-809. Interstate common line support (ICLS) provides support to rate-of-return carriers, to the extent that subscriber line charge (SLC) caps do not permit such carriers to recover their interstate common line revenue requirements. See 47 C.F.R. § 54.901- 904. 6 See National Broadband Plan at 141. 7 Small carriers typically receive considerably more per-line support than larger carriers serving high-cost geographic areas. 8 See Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and Order, 12 FCC Rcd 8776, 8899, para. 224 (1997) (Universal Service First Report and Order) (subsequent history omitted). 9 Telecommunications Act of
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  • the universal service support mechanisms. Specifically, we propose that USAC routinely provide to the Commission the data that it collects from both incumbent LECs and competitive ETCs for calculating high-cost payments, specifically, high-cost loop support, interstate common line support, local switching support, safety net, and safety valve support payments, pending any elimination of any of those programs. For example, section 54.901 of the Commission's rules requires USAC to calculate ICLS support as the difference between the common line revenue requirement and the sum of end-user common line charges and certain other revenues. Similarly, section 54.301 of the Commission's rules requires USAC to collect local switching revenue requirement and weighting factor data for calculating LSS. We propose that USAC provide to the
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  • is responsible for Part 36 Subpart F-Universal Service Fund (HCLS) data collection under the Commission's current rules, NECA analyzes the cost data, performs certain calculations, and then transmits that information to USAC for use in determining HCLS payments to rural carriers, but USAC does not have access to the underlying Part 36 data that carriers submit to NECA. Similarly, section 54.901 of the Commission's rules requires USAC to calculate ICLS support as the difference between the common line revenue requirement and the sum of end-user common line charges and certain other revenues. Yet NECA calculates the common line revenue requirement and submits the results of its analysis to USAC; USAC does not have access to the underlying information that carriers submit