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SBC and BellSouth proposed ‘alternative connections- based’ unive...

SBC and BellSouth proposed “alternative connections- based” universal service contribution method they said would ease concerns about earlier proposal and could be implemented by Jan. 2004. In meantime, companies urged FCC in Nov. 5 letter to modify existing revenue-based…

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methodology through interim plan similar to that proposed by group of other carriers. SBC and BellSouth recommended that starting April 2003 FCC: (1) Eliminate “lag issues” by implementing “bill and remit” process. (2) Establish “an uncollectible safe harbor in the funding demand.” (3) Increase wireless safe harbor percentage and require “companywide election.” (4) Remove DSL services from the contribution base pending decision in wireline broadband proceeding. Longer term proposal would retain connections-based assessment for most types of interstate telecom services, including bundled switched local and interstate long distance services, BellSouth said. However, “in those cases where an end user buys switched local service and interstate long distance service from different carriers, one half of the connection assessment is assigned to the local service and the other half of the connection assessment is used to calculate a residual funding requirement. This residual funding requirement will be recovered from IXCs, including dial- around and prepaid calling card providers, on a revenue basis.”