Alaska Communications Urges FCC to Include RHC Demand in Q3 USF Contribution Factor

percent of carrier end-user interstate and international telecom revenue, which included an "unexplained 'adjustment' of the full $100 million of RHC demand" (see 1706130072). "W]ithout this 'adjustment,' the correct contribution factor would be only marginally higher, about 17.9 percent," said the company's filing Tuesday in docket 96-45. The 17.1 percent contribution factor is to take effect June 27 absent commission action. Alaska Communications said a review of Universal Service Administrative Co. filings found "virtually no justification for the abrupt shift" on June 2, "when USAC suddenly concluded" that the RHC program was overfunded and revised its demand projection downward by $100.85 million. USAC's decision to project RHC demand "after netting out purportedly excess collections from previous years violates" the Wireline Bureau's "clear and explicit guidance not to do so," the telco wrote. The FCC also should consider various RHC changes putting pressure on the program's "grossly inadequate" $400 million annual budget cap, and maintain reserve funds "to smooth the transition and to bridge the gap between the very real demand and limited funds," the company said. "The Commission should not borrow from the RHC reserve for a lower contribution factor -- a temporary gain of only cosmetic benefit to the national interest." The telco recently warned that USF faced a crisis in its RHC program management (see 1706120034).The FCC didn't comment.