FCC modified methodology used to assess contributions carriers ma...
FCC modified methodology used to assess contributions carriers make to federal universal service support mechanisms by reducing interval between accrual of revenues and assessment of contributions based on those revenues. To base assessments on revenue data more reflective of…
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current market conditions, interval was reduced to 6 months from one year. Agency said existing process “may place carriers with decreasing interstate revenues at a competitive disadvantage as compared to carriers with stable or increasing interstate revenues.” Some carriers had complained that basing contribution on year-ago revenue was unfair. They said if their revenue went down in current year they would end up paying greater percentage of their current revenue into universal service fund than other carriers. Agency said it still thought current methodology was “competitively neutral” and met Telecom Act but “we conclude that reducing this interval will be superior to the current methodology by basing assessments on revenue data that are more reflective of current market conditions.” FCC said it decided against alternative of basing contributions on current revenues as AT&T sought because it would increase reporting burdens on carriers.