USF Order Lacks ‘Clear Vision,’ Rurals Say in Ex Parte Notice
FCC Chairman Julius Genachowski’s proposed universal service order lacks a “clear vision or roadmap,” leaders of the largest rural telecom associations said in meetings with FCC staff last week. Leaders from OPASTCO, NTCA, the Western Telecom Alliance and the National Exchange Carrier Association, along with executives from rural telcos, said the proposed overhaul isn’t comprehensive enough. “Such ambiguity, together with the imposition of new near-term constraints and the overhang of additional constraints or reductions in support to be considered in a further notice of proposed rulemaking, would only chill investment by RLECs and deter lenders and outside investors by perpetuating regulatory uncertainty,” the rural leaders said, according to an ex parte notice posted on docket 10-90.
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"Indeed, such uncertainty might only ironically undermine the objective of seeking even greater cooperation and opportunities for partnership among RLECs,” the rural leaders said in their ex parte notice (http://xrl.us/bmgdn6). “Not only might such uncertainty adversely affect the many partnerships already in place, but it may also cause any given RLEC to question whether new arrangements with a potential RLEC partner has financially sustainable and stable operations."
Industry, state leaders and consumer advocates were briefed last week on the contents of Genachowski’s universal service and intercarrier compensation system reform order (CD Oct 14 p2). Industry has said it remains confused despite the briefings, which was one of the main thrusts of the rural groups’ criticisms in its 55-page notice. Speaking on a rule that would prevent universal service cash from going to areas where an unsubsidized competitor is already working, for instance, the rural groups said: “The unrebutted record in this proceeding reveals far too many unanswered questions relating to the implementation of such a rule in RLEC areas."
One FCC official said Genachowski did not circulate a second draft of the USF/intercarrier comp rules as had been expected late Friday. Staff appear to still be making changes to the proposed rules, the FCC and telecom officials said. But with only a few days before the “sunshine” period closes down lobbying, companies and consumer advocates were pressing their cases hard. They also began taking open shots at one another. PAETEC, for instance, said up to 7 percent of its revenue could be lost if the commission slashes intrastate rates, but “AT&T is unlikely to suffer any access revenue losses in one-half of its states because its access rates are already equalized” (http://xrl.us/bmgdo3). “In those states, AT&T will have no lost access revenues to offset with increased SLCs or retail rates.