Federal-State Joint Board on Universal Service issued recommendat...
Federal-State Joint Board on Universal Service issued recommendation on how FCC should act on remand by 10th U.S. Appeals Court, Denver (CD Feb 20 p5). Court remanded FCC’s 9th universal service order, which had set mechanism for determining how…
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much federal universal service support would go to larger ILECs. In recommended decision issued Oct. 16, Joint Board proposed that FCC: (1) Adopt additional measures “to induce states to ensure reasonable comparability of urban and rural rates.” (2) “Implement a supplementary rate review as a check on whether nonrural high-cost support continues to provide sufficient support to enable the states to maintain reasonably comparable rural and urban rates.” (3) “Continue use of statewide average costs to determine nonrural high- cost support.” Court ruled in Qwest v. FCC that order didn’t adequately define and apply Telecom Act’s requirements that rates in rural areas be “reasonably comparable” with urban areas and that support should be “sufficient.” It also faulted FCC for not properly explaining its reasoning for setting funding benchmark at 135% of national average.