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USTA, CTIA, Qwest, Verizon and Verizon Wireless offered FCC compr...

USTA, CTIA, Qwest, Verizon and Verizon Wireless offered FCC compromise position on revising universal service contribution methodology. In letter submitted late Fri., groups said they thought FCC was moving too quickly to overhaul contribution system and they had agreed…

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on interim approach: Moving to modified revenue-based system using collect-and-remit approach, until FCC could “more fully examine the potential impacts of any new assessment method.” Under that system, carriers would contribute to universal service funds based on interstate revenue they collected, letter said. Carriers could recover their contribution amounts from end-user customers based on factor derived by Universal Service Administrative Co. (USAC) plus “limited administrative markup.” Letter said group also agreed to wireless carrier safe harbor of at least 20% unless wireless carrier could determine its actual interstate revenue. “In addition, the safe harbor percentages should be applied on a companywide basis.” Letter said there was agreement that: “For purposes of reporting interstate revenue, CLECs should impute an amount equal to the federal Subscriber Line Charge [SLC] charged by the ILEC in that CLEC’s serving area. CLECs should have the option of reporting the actual amount charged by the ILEC or the nationwide SLC cap.” Groups said those actions would address immediate concerns about sustainability of current assessment method. They also would give FCC “additional time to develop the record on how best to balance the contribution levels from different classes of consumers and ways to reduce the administrative difficulties in implementing a new system.” Groups said more time was needed because several proponents of per-connection proposals have made changes “and in some cases, parties are suggesting entirely new approaches that have not been adequately aired in the record.”