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Arvig to Detariff Its ILEC Broadband-Only Loop Service in Cost-Allocation Move

Arvig Enterprises said it's opting to detariff the consumer broadband-only loop service of its incumbent local telcos effective Feb. 1. The telco holding company is making the cost-allocation move under the FCC March rate-of-return USF overhaul order, it told the…

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commission Friday. That order allowed ILECs to choose "permissive detariffing" in recovering a portion of their loops costs when providing broadband-only service, said Arvig's filings in docket 02-33 notifying the commission of the decision covering its 14 incumbents. Arvig said the detariffing affected only its own ISP, which purchases transmission services from the ILEC units as an input for its retail broadband services. "The provision of the Consumer Broadband Only loop service as a detariffed service will have no effect on the end-user services provided by the Company's affiliated ISP," said the filings. Arvig is the third largest local carrier in Minnesota, a company representative told us Tuesday. Other rate-of-return ILECs have also taken advantage of the detariffing option.