Rosenworcel Wants Simpler, More Stable USF Benchmarks
In an otherwise routine order Friday clarifying some requirements of the November 2011 USF/intercarrier compensation order and tweaking others, FCC Commissioner Jessica Rosenworcel issued a separate statement suggesting simplifications to the “extremely” complex reforms. She worries that the complexity of the order, and the benchmarks that shift annually, could make life difficult for telcos that want to invest in their networks. “I fear that this complexity can deny rural carriers dependent on them the certainty they need to confidently invest in their network infrastructure,” Rosenworcel wrote. “So when opportunities arise to simplify our rules in a manner that is fiscally sound, good for investment, and good for rural consumers -- I think we should seize them."
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In its fifth order on reconsideration (http://xrl.us/bn2jx8), the FCC modified the waiver standard for telcos seeking waivers of reductions in USF support. Originally, the commission had said it envisioned granting relief only where a petitioner can demonstrate a reduction in high-cost support would put consumers at risk of losing voice service. Friday, the commission clarified that a waiver might be granted where consumers “face a significant risk of losing access to a broadband-capable network that provides both voice as well as broadband today, at reasonably comparable rates, in areas where there are no alternative providers of voice or broadband.” The change recognizes that universal availability of broadband is an explicit FCC goal, the order said.
Rosenworcel called for the agency to combine the two separate capital and operating expense benchmarks into one benchmark “to simplify the regression analysis and provide carriers with flexibility to meet our new limits.” She also wants the commission to “take a hard look at keeping our benchmarks in place for a longer period of time, instead of resetting them annually.” Such a move would “help ensure that we have in place a more predictable system that provides carriers with more confidence to invest in broadband infrastructure,” she said. Commissioner Ajit Pai has also criticized what he called an unstable and unpredictable universal service model that discourages long-term investments in rural broadband networks (CD Sept 7 p5). Like Rosenworcel, Pai wasn’t a commissioner when the USF/ICC reform order was passed.
The commission also issued a blanket waiver of the filing fee for parties seeking a waiver of the high-cost loop support benchmark rule. The commission modified rules regarding the required financial statements for privately held rate-of-return carriers that hold loans from the Rural Utilities Service. The commission required carriers to file their RUS Form 479 with the commission, Universal Service Administrative Co. and the relevant state commission, as part of their annual Section 54.313 filing. For non-RUS borrowers that are audited, such companies may either file their audited financial statements or provide their financial information in a form consistent with the RUS form. Telcos not audited in the ordinary course of business can either file a financial statement that’s been subject to review by a certified public accountant, or file financial information in a format consistent with the RUS form. “These were common-sense changes that needed to be made, and while there’s more to be done, we're pleased that the FCC took these positive steps,” said Michael Romano, NTCA senior vice president-policy.