Many states' regulators and the Federal Communications Commission are at odds over the Broadband Connectivity Plan proposed by six of the biggest phone companies serving rural areas. The proposal by AT&T, Verizon, CenturyLink, Frontier Communications, Windstream and FairPoint Communications, addresses intercarrier compensation and the Universal Service Fund, which the FCC wants to reform in hopes of expanding broadband networks to rural areas, Kim Hart of Politico reports. (Associated Press photo)
Some state regulators say "the proposed plan pre-empts their role in regulating how phone companies operate in their territories," in violation of the 1996 Telecommunications Act, Hart reports. State commissioners plan to plead their case to the FCC and lawmakers in Washington next week.
Historically, states have taken the lead in determining intrastate rates, the fees local carriers pay to connect to long-distance carriers, while the FCC has managed interstate rates. The new proposal would set the default rate at $0.0007 per minute for all calls, regardless of distance, doing away with "a fundamental piece of state regulators' authority" and significantly cutting revenues "rural companies rely on to serve remote regions," Hart reports. As a result, rural customers may see price increases. (Read more)
Some state regulators say "the proposed plan pre-empts their role in regulating how phone companies operate in their territories," in violation of the 1996 Telecommunications Act, Hart reports. State commissioners plan to plead their case to the FCC and lawmakers in Washington next week.
Historically, states have taken the lead in determining intrastate rates, the fees local carriers pay to connect to long-distance carriers, while the FCC has managed interstate rates. The new proposal would set the default rate at $0.0007 per minute for all calls, regardless of distance, doing away with "a fundamental piece of state regulators' authority" and significantly cutting revenues "rural companies rely on to serve remote regions," Hart reports. As a result, rural customers may see price increases. (Read more)
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