NCTA Opposes Telco Plan to Permit Accounting Shift to GAAP, Seeks Pole Rate Freeze
NCTA objected to a telco proposal to use generally accepted accounting principles (GAAP), instead of traditional Part 32 uniform system of accounts data, for calculating pole-attachment rates (see 1701300036). "There are two substantial concerns that warrant rejection" of the proposal…
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of AT&T, CenturyLink and Verizon, NCTA said in a filing posted Thursday in FCC docket 14-130 on meetings with aides to Chairman Ajit Pai and Commissioner Mignon Clyburn. The ILEC plan "would undermine broadband deployment by increasing pole attachment rates," and it doesn't rely on "publicly available or verifiable information," NCTA said. "On the current record, the Commission has no idea whether a transition to GAAP principles will result in a rate increase of 5 percent or 50 percent or 500 percent." It said increased pole-attachment rates run directly counter to FCC policy that seeks low rates to promote broadband deployment. Commissioners tentatively plan to vote Feb. 23 on an order to cut "outdated accounting rules" and minimize compliance burdens of one industry segment (see 1702020051). "To the extent the Commission grants the requested relief, we proposed that it be conditioned on freezing incumbent LEC pole attachment rates at current levels," NCTA said. "Freezing rates would avoid pole rent disputes and increases, save the costs of Part 32 accounting, and avoid the need for the detailed investigations, guidance, or rulemaking that would otherwise be required to develop a GAAP-based pole rate methodology." A CenturyLink official said the company expects to respond to the criticisms in an upcoming filing. AT&T and Verizon didn't comment.