The FCC denied a Core Communications forbearance proposal that so...
The FCC denied a Core Communications forbearance proposal that sought to revamp intercarrier compensation. Core had asked the commission to refrain from enforcing Sec. 251(g) of the Telecom Act, which effectively would have replaced access charges with reciprocal compensation.…
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The company also asked the FCC to forbear from enforcing the rate averaging and integration requirements in Sec. 254(g). The Bells and rural incumbents said in 2006 comments that this wouldn’t work and probably would increase demands on the Universal Service Fund. The FCC said the petition was denied because it didn’t meet “statutory forbearance criteria.” Forbearance is granted only if a proposal meets three “prongs,” the agency said in an order issued late Thursday. Proponents must prove: (1) The targeted regulation is “not necessary” to ensure a carrier’s charges and practices are “just and reasonable.” (2) The regulation isn’t needed to guard consumers. (3) Forbearance won’t hurt the public interest. The Core petition meets none of those requirements, the FCC said. “If the Commission were to forbear from the rate regulation preserved by section 251(g), there would be no rate regulation governing the exchange of traffic currently subject to the access charge regime,” the order said. “The record suggests that many LECs (local exchange carriers) depend on access revenues to maintain affordable rates and service quality to consumers, especially in rural areas… We find that the requested forbearance would not result in a unified intercarrier regime… and instead would result in the absence of rate regulation for access charges.”