Three rate-of-return carriers may convert some operations to pric...
Three rate-of-return carriers may convert some operations to price cap regulation, the FCC said Tuesday. Frontier, Puerto Rico Telephone and Consolidated Communications separately petitioned the FCC to approve the change using a regulatory framework established in a March 18…
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order granting a similar request by Windstream. The waivers serve the public by encouraging encourage the carriers to “maintain and enhance efficient operations” and require “reduction of some of the carriers’ access rates,” the FCC said. The FCC also granted conditional waivers letting the three carriers keep receiving interstate common line support via the universal service high-cost fund. FCC rules reserve ICLS for rate-of-return carriers, giving interstate access support to price cap carriers. But the FCC tentatively concluded that carriers converting to price cap regulation are ineligible for IAS. Without ICLS waivers, conversions “could result in the loss of explicit support by these carriers to offset the interstate portion of their loop costs that are not recovered through interstate access charges.”