FCC Votes to Freeze Local Rate Floor

On May 18, 2017, the FCC voted 2-1, with Commissioner Clyburn dissenting, to freeze the local rate floor at $18 until it reviews proposed changes to the rate floor rules. The rate floor was scheduled to increase to $20 on July 1. The proposed changes are part of a Notice of Proposed Rulemaking (NPRM) and Order wherein the FCC will consider eliminating the rate floor rules entirely. The $18 freeze, which is part of the Order, will become effective immediately upon release of the NPRM and Order and stay in effect until the FCC completes its full review of the rules, or no more than two years.

JSI notes that even with this freeze companies will still be required to make the appropriate rate floor data filings and certifications with NECA this June. JSI will continue to monitor this proceeding and will be glad to discuss this issue with those that may be impacted.

If you have any questions or would like to discuss the rate floor freeze and NPRM further, please contact one of our experts by clicking the button below.

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