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Wireline Bureau Synchronizes USF Transitional Funding for Price-Cap Telcos

The FCC will generally calculate price-cap telco transitional USF support using the same time period, regardless of when the carriers made their Connect America Fund Phase II decisions, the Wireline Bureau said Monday in a public notice in docket 10-90.…

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The bureau said under commission rules carriers electing CAF Phase II support in states where that support is less than their CAF Phase I frozen support will transition to model-based support over several years. In addition to their Phase II support, carriers are to receive 75 percent of the difference between Phase I frozen support and model-based support in the first year, 50 percent of the difference in the second year and 25 percent of the difference in the third year, the bureau said. For administrative convenience, the bureau directed the Universal Service Administrative Co. to calculate the transition funding years, starting this year, as running from Aug. 1 through July 31 of the next year, whether the carriers made their Phase II acceptance decisions on the deadline date of Aug. 28 or before (see 1508270068) -- except USAC was directed to make adjustments if necessary for the two carriers that were authorized to being receiving Phase II support prior to its August processing deadline (Frontier Communications and Windstream were the first two).