The Texas Public Utility Commission (PUC) modified rules on the s...
The Texas Public Utility Commission (PUC) modified rules on the state’s universal service high-cost fund to lend it flexibility to address possible changes. The PUC amended the rules to give it discretion to decide which lines are eligible for…
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support, and to set the benchmarks to be used to calculate support. Current rules spell out explicit line standards and benchmarks, with flexibility. The PUC (Case 34060) said much change has hit telecom markets since 2000 when the rules last were modified; the PUC needed flexibility to address those changes’ impact on the state fund. Major competitive and incumbent carriers backed the reform. Competitive carriers said the change will allow the PUC discretion to implement critical universal service policy changes. AT&T and Verizon endorsed the change, but said the PUC in any rulemaking on overhauling the fund to match current market conditions must take care not to invalidate the present fund and end support to carriers now getting subsidies. The PUC assured them all subsidy recipients will continue to get funds without change until the PUC completes its hearings and issues a final order replacing the current rules.