Rate-of-Return USF Budget Control Pushed Back to September; NTCA Commends FCC
The FCC will implement a rate-of-return USF budget-control mechanism in September, said a Wireline Bureau public notice in docket 10-90 listed in Thursday's Daily Digest. The mechanism, established under a March rural broadband overhaul order, is intended to keep rate-of-return…
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USF spending at $2 billion, at least until a planned cost-model option takes effect. "Going forward the target amount will be calculated for each mechanism each year prior to the annual filing of access tariffs, but that was not possible in this initial year of implementation" because "these calculations were just recently announced," the PN said. NTCA Senior Vice President Mike Romano, who recently voiced concern about a previously planned July 1 implementation date (see 1606170058), said his group appreciates the commission's willingness to set a "more reasonable" timetable. He said the new September date is consistent with a rule calling for two months' notice to carriers. Romano noted the rural high-cost fund isn't indexed for inflation, unlike some other USF programs.