The FCC amended its rules to make it easier for carriers to recei...
The FCC amended its rules to make it easier for carriers to receive universal service funding for network investment after acquiring telephone exchanges from other carriers. Granting a request by NTCA, the FCC said rural carriers can receive “safety…
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valve” support for investments made in the first year of operating acquired exchanges. The FCC said the changes will make sure carriers receive sufficient high-cost support while preserving the rules’ purpose “of discouraging carriers from transferring exchanges merely to increase their share of high-cost universal service support.” In a related action, the agency also granted Valor Telecom a waiver of Sec. 54.205 rules to allow it to receive safety valve support for costs it incurred in its first year of operation. Safety valve support goes to carriers that make substantial investment after acquiring exchanges, but time limits on when the support begins had created problems for some carriers. NTCA had argued carriers had to wait until the end of their first year before receiving the safety valve support, which presented a disincentive for rural carriers to invest in that first year. The FCC also changed the rules to make clear that they don’t apply to transfers of exchanges between non-rural carriers “after the phase-down of interim hold-harmless support.”