FCC, DOJ Defend USF Decisions Leaving Price-Cap Telcos Unfunded in Some Areas
The FCC met its USF duties to price-cap telcos even though a few of their high-cost areas aren't subsidized, the government said, responding to carrier court challenges to 2014 and 2015 commission orders denying telco relief requests (see 1607120073). The…
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FCC reasonably required the telcos to continue to provide "interim" voice service without USF support in about 6 percent of their rural census blocks to protect consumers during a complex shift to broadband-oriented subsidy mechanisms, the commission and DOJ said in their brief to the U.S. Court of Appeals for the D.C. Circuit posted Tuesday (AT&T, CenturyLink v. FCC, No. 15-1038 and consolidated cases). The government entities said the arrangements complied with a requirement that qualifying telecom carriers be "eligible" to receive USF support "because nationwide carriers are 'eligible' for and receive, considerable high-cost support," and they can seek support for unsubsidized areas through petitions or a planned Connect America Fund Phase II subsidy auction. The FCC and courts have never found that carriers must receive support in every particular area to be "eligible" for such support, they said, citing the commission's "broad discretion" to balance competing USF principles. Once the CAF II process is fully implemented, carriers "will be supported or receive forbearance in all or nearly all blocks," and the FCC has promised to revisit remaining obligations, they said. For now, carriers are free to prove they need additional support to provide service, "a showing no carrier made here," they said.