Utah Supreme Court upheld 2000 PSC decision to deny wireless carr...
Utah Supreme Court upheld 2000 PSC decision to deny wireless carrier WWC Holdings status as eligible telecom carrier (ETC) qualified to receive universal service subsidies in rural areas. WWC has ETC status in areas served by Qwest, but PSC…
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denied it ETC status in rural areas served by independent incumbent telcos on ground that that would increase demands on state universal service fund without any offsetting public benefits. Court said PSC’s denial of ETC status to WWC was legal because it wasn’t based on effects on state fund but rather on “substantial record” showing lack of public benefits from subsidized WWC rural wireless services. Court also upheld PSC requirement that WWC price its wireless universal service offering at or below specific “affordable” base rate in order to receive fund subsidies. Court said condition didn’t constitute forbidden state wireless ratemaking. Court (Case 20000835) said purpose of rate cap was to ensure fund supported affordable rates in high-cost areas without providing windfall to ETC. Decision said cap wasn’t wireless ratemaking because it applied only to WWC under “discrete and voluntary” circumstance of accepting universal service subsidies. If WWC chose to forgo subsidies, it would remain free to charge market rates for its services, court said.