FCC Releases Order on Universal Service Reforms for RLECs

JSI to Hold Free Webinar for Clients Next Week

The FCC just released the long-anticipated Order reforming universal service for rate-of-return carriers (RLECs). As described in JSI’s February 16 e-Lert, today’s Order adopts a two-path approach, under which RLECs may elect to receive support through the Alternative Connect America Model (A-CAM) or remain on a modified version of the support currently received by RLECs.

According to the Order, the Wireline Competition Bureau will release a Public Notice and then RLECs will have 90 days to decide whether or not to elect A-CAM support. The FCC has made available $150 million in additional support above the $2 billion budget for those electing the A-CAM. If the demand for funding exceeds this additional amount, another version of the A-CAM will be run and those making the initial election will have an opportunity to opt out within 30 days.

JSI is reviewing the Order and, in the coming days, we will provide our initial analysis and transition timeline. We also plan to hold a free webinar for clients within the next 10 days. Additionally, JSI will follow up with companies regarding company-specific impacts.

The FCC has not given RLECs much time to make a decision that will greatly affect their businesses for the next decade. JSI is prepared to assist clients with any financial analysis and advice needed during this stressful time to help you make the best decision for your company’s future.

In the meantime, please contact Brian Sullivan, John Kuykendall, Steve Meltzer in JSI’s Maryland office at 301-459-7590, Douglas Meredith in our Utah office at 801-294-4576, or your company’s JSI Cost Consultant with any questions you may have about the Order or any company-specific issues that you would like to discuss.

Source: JSI e-Lert