District of Columbia residents and businesses would be expected to...
District of Columbia residents and businesses would be expected to pay for the projected access service revenue reductions that Verizon would incur in other states as a result of the FCC’s USF/ICC order, said Betty Anne Kane, head of the…
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D.C. Public Service Commission in an ex parte filing. She claimed one result of the FCC’s decision to mandate a “bill and keep” ICC arrangement for both interstate and intrastate access is to allow Verizon to recover revenue reductions from intrastate access services provided in other states from D.C. residents and businesses. It’s unfair because Verizon would have had no reduced intrastate access revenue in D.C., she said. Additionally, the USF order would allow price cap ILECs to transfer the unrecovered revenue requirement for that state through access recovery charge increases to its other operating companies’ residential and business customers in other states, she said. It’s “unfair, unprecedented” and “legally unjustified” for the FCC to authorize Verizon and other multi-state price cap ILECs to re-apportion intrastate revenue requirements from one state to another, she said. She urged the FCC to amend the order’s directive that the Eligible Recovery calculation for access recovery charge be performed at the holding company level, and instead direct that the calculation be performed at the operating company’s study area level. Verizon hasn’t made a decision on whether it will take advantage of the changes, a spokesman said. The USF order is a “balancing act” and a “broad framework” that needs to be looked at as a whole, he said.