AT&T said it was “encouraged” that FCC shortened lag time between carrier’s accrual of revenues and assessment of its Universal Service Fund (USF) contribution (CD March 15 p5). However, that won’t solve problem entirely, carrier said. AT&T said it looked forward to participating in FCC’s upcoming proceeding to consider ways to simplify entire USF cost recovery process and eliminate lag entirely.
FCC denied petition by Operator Communications (Oncor) for forbearance of rule requiring that contributions to federal universal service fund be based on carrier revenue from prior year. Oncor contended that basing contributions on prior-year revenue harmed carriers with declining revenue. It asked FCC to forbear from assessing revenues for years 1998-2000 and then reassess contribution based on actual revenue for those years. Commission said requested action would give unfair advantage to carriers with declining revenue. FCC Comr. Furchtgott-Roth issued statement agreeing with FCC’s denial but emphasizing that problem raised by Oncor was serious: “Because carriers contribute to the universal service fund based on the prior year’s revenues, those carriers whose revenues have declined find themselves paying a higher percentage of their current revenues… than do carriers with stable or increasing revenues.” He said end-user surcharges could be “promising solution.”