Small Carriers Say Support Under CETC Cap Must Remain Constant
Small wireless supported a Corr Wireless petition asking the FCC to review a USAC decision that effectively decreased the level of funding available to competitive eligible telecom carriers under the interim funding cap, in filings at the FCC. The Universal Service Administrative Co. decided funds given up by Verizon Wireless after it purchased Alltel should no longer be counted as part of the fund.
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Verizon Wireless agreed as a merger condition to a voluntary “phase down” of its CETC high-cost support over a five-year period, with support decreasing by 20 percent annually. The commission imposed the interim cap in April 2008, over the strong objections of small wireless carriers seeking universal service funding.
In determining that the support Verizon Wireless is giving up should be removed from the pool available to CETCs, USAC overstepped its authority, the Rural Cellular Association said. “In order to function as a federal agency, or exercise decision-making authority, USAC must be specifically authorized to do so by or under a federal statute,” RCA said. “USAC has no such authority. Accordingly, USAC may not make policy or interpret unclear provisions of the Commission’s rules.” RCA also said Verizon’s agreement to give up funds “did not establish a rule that would deprive any other CETC of its right to receive the high-cost support to which it is entitled.”
“The Corr case is an example of why the ban on ex parte communications during the Sunshine Period must be honored, David LaFuria, a lawyer for RCA, told us. “There is no FCC writing clearly explaining the voluntary commitment given by Verizon Wireless to the agency, leaving a predictable mess that must now be cleaned up. Extrajudicial conditions unrelated to the criteria for a transfer application should likewise be curtailed. At the very least, they must be fully and publicly vetted.”
In imposing the cap, the FCC made clear it was based on April 2008 levels, not affected by the entry or exit of ETCs from the market, said the Universal Service for America Coalition. “Despite the Commission’s clear statement, USAC has created ambiguity regarding the interim cap by misinterpreting the Verizon Wireless-Alltel Merger Order, which was adopted in a wholly unrelated proceeding.”
The USAC decision is unfair to CETCs, the Rural Telecommunications Group said. “USAC has gamed the capped support mechanism to ensure that new entrants into any states’ capped high-cost funding pool decreases support for all competitive ETCs, but any competitive ETC that exits the pool does not increase the amount of high-cost support available to the remaining competitive ETCs.”