Great Plains Communications dropped out of the industry’s Interca...

CEO Michael Jensen said he was leaving the forum because “it has become increasingly clear that the ICF effort will not, in our opinion, allow rural ILECs to maintain appropriate cost recovery that is essential to serve our customers.” The forum, which has been working in private, is trying to agree on a proposal to replace access charges and other processes by which carriers compensate each other. The group reportedly is planning to recommend a bill & keep (BAK) plan that would shift the payment requirements to customers. Jensen said in the letter he had known BAK was the plan all along, but he had hoped the group would consider a version that addressed the needs of both big companies and rural ILECs. He said the plan he expects the group to present to the FCC would: “Ignore the undeniable costs of providing intercarrier services in high-cost areas; create an unsustainable reliance on yet another new universal service-like fund; cause more rate increases for already- burdened small and rural customers; refuse to fairly rebalance rates across the states; reject any consideration of rational policies on VoIP services and universal service; and completely eliminate the role of state commissions in determining intrastate rates.” Great Plains’ departure from ICF is significant because it was one of few rural telcos participating.