Representatives of the Rural Cellular Association and its member companies...
Representatives of the Rural Cellular Association and its member companies urged in various meetings at the FCC that the commission adopt a “cost-model” for funding allocation as it makes changes to the Universal Service Fund, according to an ex parte…
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letter. The RCA members “emphasized the efficiency gains of truly portable funding that would direct support to those carriers that successfully capture customers,” the letter said. “Adherence to a system that embraces portability of funding could control costs without resorting to phaseouts of funding to competitive carriers.” RCA members also warned that a reverse auction approach could prove anticompetitive. “Zero-bids by larger carriers could effectively wipe out competition” and the FCC should put in place “safeguards to protect against any such ‘gaming’ of an auction process, if ultimately utilized,” RCA said.