USTelecom opposed an American Cable Association FCC application...
USTelecom opposed an American Cable Association FCC application for review of a Wireline Bureau April decision on the Connect America Fund cost model order that calculated costs of serving census blocks in price-cap telco areas. “USTelecom stands by its cost…
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of capital calculation which resulted in a zone of reasonableness above 8.48% and below 9.52%, resulting in a point estimate of 9.00%” and other figures, said that association in an opposition filing to ACA’s request posted Monday in docket 10-90 (http://bit.ly/U1g5GM). “ACA presents no new information to contradict it. Yet ACA rejects the Bureau’s considered conclusion which adopted a cost of capital 50 basis points below the recommendation of the ABC Coalition.” The association said an FCC model used data from the coalition, a USF reform group of telcos that has included USTelecom members (http://bit.ly/1pXdWuo). ACA’s June 20 application for review said the bureau’s model, “for the key input of the cost of money ... adopted a cost significantly in excess of forward-looking market rates” and would mean price-cap LECs get more support than required (http://bit.ly/1vWPFSK). ACA plans to respond to USTelecom’s opposition, in reply comments, said ACA Senior Vice President-Government Affairs Ross Lieberman. He declined further comment.