The FCC is expected to establish a mix of proposals and options t...
The FCC is expected to establish a mix of proposals and options to provide broad direction for Universal Service Fund/intercarrier reform, said Stifel Nicolaus in a note. “We believe the FCC would like to trim fat from high-cost USF…
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
voice support, shift funding to broadband adoption and deployment, expand the USF contribution base and reduce and unify intercarrier compensation rates,” the analysts said. The drive for reform creates risk for rural local exchange carriers “if the commission moves to cut intercarrier compensation without providing adequate revenue replacement.” The upside could be “if reforms help RLECs compared to current trends by shifting cost recovery from declining intercarrier access charges to greater (broadband-oriented) USF support and end-user fees.” Verizon, AT&T and Qwest are likely to benefit from USF revisions and intercarrier rate cuts. “Wireless carriers seek greater USF parity, and while their voice support appears at risk, the FCC is looking to promote mobile broadband,” the analysts said. Reforms could possibly be followed by litigation. “Congress could help by clarifying the FCC’s jurisdiction, but legislation remains a tough sell.”