Arguments that Verizon Wireless wasn’t eligible for high-cost Universal Service...
Arguments that Verizon Wireless wasn’t eligible for high-cost Universal Service Fund support in states such as Nevada “cannot be squared” with the FCC’s “rules and decisions,” the carrier said in meetings with the Wireline Bureau. “For example, in the Corr…
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Wireless Order, the commission gave Verizon Wireless two options for receiving high-cost support: Option A, which would have capped the company’s universal service at levels established at the time of the Verizon Wireless-Alltel merger, or Option B, under which its ‘high-cost universal service support will be recalculated each quarter based on current data for that quarter,'” the carrier said in an ex parte notice released Friday. “Option B necessarily contemplates that Verizon Wireless and its affiliated companies remain eligible to receive high-cost support following Verizon Wireless’ acquisition of RCC and Alltel and furthermore, that its eligibility is not limited to legacy Alltel or RCC lines.” Verizon Wireless bought Alltel for $28.1 billion in early 2009 but agreed to phase out high-cost support 20 percent each year for five years as a deal condition. Competitive ETCs have accused Verizon of improperly obtaining USF support by using Alltel’s ETC designation to get support for non-Alltel lines. Nevada Attorney General Catherine Cortez Masto is investigating, and there are similar accusations in Wisconsin (CD Feb 7 p6). Verizon officials have cast the controversy as the result of state and CETC anxiety over commission plans to phase out competitive funding altogether.