Puerto Rico Telephone Seeks More FCC Fixed USF Support, Right of First Refusal
Puerto Rico Telephone Co. asked the FCC to further hike fixed service USF support in stage 2 of a Uniting Puerto Rico Fund, calling the current proposed increase insufficient to meet its goals. PRTC said the Connect America Cost Model…
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estimates it would take $553 million in annual operating expenses to run a fiber-to-the-premises network to 1.67 million locations, but expected revenue from subscribers would be just $456 million. A proposed $8.4 million increase in annual support to $44.5 million would cover only half the deficit, said the incumbent telco's filing posted Monday in docket 18-143. The carrier proposed an additional "annual budget for fixed providers of $62 million above the existing legacy frozen support for a total of $98 million" annually. "If offered this funding on a right of first refusal basis, PRTC will be prepared to modernize and expand voice and high‐speed broadband service to a specified percentage of locations within a very aggressive timeframe," it said. "With no guarantee of federal funding, PRTC is currently implementing a build‐out plan that effectively replaces the legacy copper distribution network that was destroyed by the hurricanes with fiber and fixed wireless service that is capable of up to 1 gigabit." PRTC met with Commissioners Jessica Rosenworcel and Brendan Carr and aides to all four commissioners, and with Wireline Bureau staffers, said filings posted Friday and Monday (here, here). Competitors opposed giving the ILEC right of first refusal (see 1808090021).