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The FCC should bar nonrural local exchange carriers from getting ...

The FCC should bar nonrural local exchange carriers from getting money from the universal service nonrural high-cost fund in states where rates have been deregulated, said the Mississippi Cable Telecommunications Association. In reply comments at the FCC on a…

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2005 remand by the 10th U.S. Circuit Court of Appeals (CD May 12 p3), the cable association said such a rule would be a good “first step” in revamping the non-rural fund. The association’s members compete with non- rural LECs, but don’t get USF subsidies. A state will deregulate incumbent LEC rates if it determines that competitors will keep the ILEC prices in check, the association said. “If an ILEC’s competitors … can provide services without subsidy, then there is no reason to continue a subsidy to the non-rural ILEC, absent a showing of need.” Deregulated ILECs in Mississippi “have obtained a lion’s share of the fund,” it said. But there’s no evidence that the money “has even been used to subsidize service.”