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Telcos Attack FCC Defense of Orders Requiring Interim Unsubsidized Voice Service

Price-cap telcos disputed FCC justifications of orders requiring carriers to continue to provide voice service in certain high-cost areas on an interim basis without USF subsidy support during a transition to broadband-oriented funding (see 1609070029). The Communications Act requires eligible…

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telecom carriers (ETCs) to provide services "that are supported" by the commission's USF mechanism, said petitioners AT&T and CenturyLink and intervenor USTelecom in a reply brief (in Pacer) Thursday to the U.S. Court of Appeals for the D.C. Circuit, which is reviewing their challenges to 2014 and 2015 orders (AT&T, CenturyLink v. FCC, No. 15-1038 and consolidated cases). The FCC argument that it can "force ETCs to provide service in areas 'where they are not supported' (emphasis added) thus conflicts with the statute's text, and the agency's defenses are unpersuasive," the brief said. The commission ignored mandates to ensure "sufficient" support and competitive neutrality, it added.