Ore. PUC expanded state’s high-cost fund to cover local exchange ...
Ore. PUC expanded state’s high-cost fund to cover local exchange carriers in state’s rural areas. Previously, only nonrural local carriers operating in Qwest and Verizon territories could participate in state universal service fund. PUC (Case UM 1017) adopted different…
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methods for rural and nonrural carriers to calculate applicable costs for universal service purposes. It continued use of forward- looking structure to determine nonrural carriers’ costs but said costs applicable to rural carriers would be established by analyzing embedded costs. That use of embedded rural costs is interim, PUC said, until FCC issues final ruling on how to calculate universal service costs of rural carriers. PUC said high-cost support would be portable to CLECs in rural areas as it was elsewhere in state. Expansion of program will require increase in fund size to $58 million from $47 million and will raise current 5.5% state universal service surcharge to as much as 6.7%. Exact amount of surcharge increase will be set later, once up-to-date cost information has been collected. Separately, PUC opened proceeding to consider Verizon proposal for rules to govern mass customer migrations when carrier abandons service and leaves state’s markets. Verizon’s proposal would require departing carriers to give advance notice and file exit plan that ensured orderly transition to other providers. Proposal is similar to mass migration rules adopted last year in N.Y. Schedule will be set later.