The Alaska Regulatory Commission (ARC) called for comment by June...
The Alaska Regulatory Commission (ARC) called for comment by June 19 on a proposal to cap certain access charge rate elements, and by July 3 on a companion plan to establish a new universal service program targeted specifically at…
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isolated rural exchanges. The proposal calls for setting a $6 cap on the carrier common line access rate element, raising the network access fee to $4 from $3 and then capping the NAF at that level. Local exchange carriers charging a common line fee of less than $6 would have to cost-justify an increase to the cap level. Carriers who can prove their costs exceed $6 would recover the balance from the state universal service fund. The ARC (Case R-08-4) also proposed to set up a $5 million universal service program targeted to provide high-cost support for isolated rural exchanges with under 250 lines. If the need for support exceeds $5 million, the subsidy per line will be adjusted downward until the program covered all qualifying exchanges. The ARC said the proposals would help reduce cost differentials between rural and urban areas and help ensure reasonable local and long distance rates for all citizens.