Big Carriers Warn Nebraska Against Expanding Connections-Based USF Contribution
The Nebraska Public Service Commission should keep the revenue-based USF contribution for business and government services because it’s less complex than a connections-based mechanism, big telecom and cable companies said in comments received Monday and emailed to us Wednesday. The…
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PSC is proposing to expand its connections-based method that now applies only to residential services (see 2008110047). “Business customers' connections may fluctuate” and “the applicable surcharge would need to be examined, and potentially changed on a monthly basis,” Cox Communications, Charter Communications and Time Warner Cable commented jointly in docket NUSF-119. Large business customers might relocate to a lesser taxed state due to rate shock, the cablers warned. Carriers understand revenue-based contribution; applying contributions to business and government services “will be complex, costly and confusing,” said AT&T. Complexities applying the connections method to business and government services have increased in the past three years, said CenturyLink. COVID-19 “has caused an unprecedented shift to work from home and away from business communications services which is likely to impact the analysis,” it added. Nebraska law requires revenue-based contribution for prepaid wireless services, said CTIA. A connections method for residential services stabilized and increased the fund, so "the financial threat to the NUSF viability has been overcome,” said Frontier Communications. Moving to connections for business and government lines is "impractical at this time," said Windstream. Small rural telcos countered that applying connections-based contribution for all kinds of services is fairer. “Much of rural Nebraska remains unserved or underserved," and current remittances "will come nowhere close" to providing enough support, commented the Rural Telecommunications Coalition of Nebraska. Exempt prepaid wireless, toll revenue and directory, private line and paging services, which don't lend themselves to a connections-based surcharge, said a state group of rural independent companies. Keep revenue-based at least for institutional operator service providers, urged Securus, saying it doesn’t “have the ability to determine or charge the NUSF applying a connections-based methodology" because it charges prison customers per call.