Wireless carriers using traffic studies as an alternative to payi...
Wireless carriers using traffic studies as an alternative to paying USF safe harbor percentages must submit the studies to the Commission, the FCC decided. There was doubt last week as to whether the FCC would toughen its stance in…
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this area, when the Commission approved a report and order and NPRM addressing interim steps the agency is taking to shore up the USF. Text of the order was released at our deadline. “We take an additional step to ensure the accuracy of reported revenue data,” the FCC said: “Mobile wireless providers have incentives to bias any traffic studies to minimize their amount of interstate and international end-user revenues and thereby minimize their fund contributions; there are no countervailing market forces to offset these incentives. Consequently, we now require any mobile wireless provider that uses a traffic study to determine its interstate end-user revenues for universal service contribution purposes to submit the study to the Commission and to USAC for review.” In the order the Commission also raised the wireless safe harbor from 28.5% to 37.1%. Carriers are allowed to submit traffic studies to show the actual percentage of interstate calls versus intrastate calls made by subscribers falls below the safe harbor.