Frontier Communications and SureWest Telephone urged the Californ...
Frontier Communications and SureWest Telephone urged the California Public Utilities Commission to not cap access charges of mid-sized incumbents at the level of AT&T or Verizon. The telcos made the suggestion in a lawful ex parte communication to PUC…
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staff members. They were responding to an administrative law judge’s proposal two weeks ago recommending a statewide access charge cap set at the levels charged by AT&T or Verizon in their respective parts of the state. Under the proposal, any local exchange provider that is not operating under rate-of-return regulation couldn’t charge more for access than AT&T or Verizon. This order (Case R-03-08-018) would affect mid-sized incumbents and competitive local carriers. Frontier and SureWest said they would suffer a disproportionately large revenue reduction on a per-line basis if they had to cut their access charges to the big incumbents’ level. They also said their ability to recover the lost revenue might be impaired by proposed PUC policies to reduce the size of the state’s high-cost universal service fund.