Rural Telcos Agree on USF Framework and Some Elements; Still Talking
Rural telco groups working to develop an industry plan to overhaul rate-of-return USF have reached agreement on a basic "two-path" framework and "major elements" but are still trying to narrow their differences, according to an ITTA ex parte filing Wednesday and an industry official with another group. The FCC had set Wednesday as the deadline for the telco groups to hammer out an industry accord.
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!
"As has been previously reported to the Commission, the representatives have reached agreement on a two-path framework that includes (1) changes to existing RoR [rate-of-return] high-cost support mechanisms; and (2) a voluntary, model-based support plan. Consensus also has been reached on major elements of the two-path approach to the extent described herein," the ITTA filing said.
Among other elements, rural carriers would be allowed the option of voluntarily opting in to a model-based plan for at least 10 years of high-cost USF support with 10/1 Mbps broadband speed required, the filing said. The groups are still working on proposed revisions to existing USF mechanisms that carriers could stick with and would allow for stand-alone broadband support, with some groups continuing to believe their "Data Connection Support" plan was the best alternative, the filing said.
Derrick Owens, WTA-Advocates for Rural Broadband vice president-government affairs, told us by email, "WTA remains committed to reaching industry consensus on a plan that allows our members to offer standalone broadband at a reasonable rate and that allows companies that want to choose model-based support to do so."
FCC Chairman Tom Wheeler recently expressed concern about continuing rural telco divisions and said the talks could not drag on (see 1506010057).