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It’s important to recognize how broadband, universal service, int...

It’s important to recognize how broadband, universal service, inter-carrier compensation reform, special access reform and wireless investigation are all interrelated, said consultant Andy Regitsky during a webinar Wednesday. He said there’s a growing consensus on several inter-carrier compensation issues…

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at the commission, including moving intrastate access rates to interstate rate levels, addressing phantom traffic and traffic stimulation, implementing an alternative cost mechanism in certain circumstances and eliminating the identical cost rule. That offers eligible competitive local exchange carriers the same amount of universal service support as incumbent LECs, he said. He mentioned a sample ICC and universal service reform proposal by the FCC last year, which would decrease the cost of universal service and increase subscriber line charge. As a result of that proposal, there would also be a single terminating rate for interstate and intrastate access and reciprocal compensation, he said. Winners of ICC and universal service reform could be ILECs if they're permitted to recover all revenue lost, and VoIP providers if there aren’t access charges, Regitsky said. Large companies that could more easily shift common costs to other products could benefit too if an additional cost standard is used, he said, joking that telecom lawyers are certainly among the potential beneficiaries. Potential losers could be state commissions if they lose final say over rates and rural providers unless lost access revenue is recovered, he said. CLECs seeking USF support will be impacted too, Regitsky said. Meanwhile, until now, the FCC has failed to take any action on special access, he said. There’s pressure from wireless providers in the broadband proceeding to reduce special access rates for the middle mile between the retail Internet provider in a rural area and its backbone network in a lower-cost urban area, he said.