At today’s public meeting, the FCC voted to move forward with a Notice of Proposed Rulemaking that could have a dramatic impact on small LECs. This NPRM is described as one that will accelerate network modernization to expedite the transition to an all-Internet Protocol (IP) network structure. According to the FCC, the Proposed Rulemaking would:

• Proposals in the Order include:
  • Capping intrastate originating switched access rates for rate of return ILECs and competitive LECs,
  • Transition these rates, along with all remaining interstate originating and terminating switched access charges to bill & keep over a twenty-four month period,
  • Deregulate and de-tariff domestic interstate and international interexchange (retail long distance) services,
• The FCC seeks comment on:
  • How to define the network edge for purposes of allocating transport cost between carriers (during the transition and after full IP migration),
  • Whether it should forbear from tariffing access charges after the transition to bill & keep,
  • Eliminating ex ante pricing regulation on end-user charges like the Subscriber Line Charge and Access Recovery Charge and deregulating these charges,
  • Phasing out the CAF-ICC support received by small LECs,
  • Evaluate potential need for any additional funding that may be required to facilitate the IP transition

This proposal was approved by the FCC by a 3-0 vote by Chairman Carr and Commissioners Gomez and Trusty. Comments will be due 60 days after publication in the Federal Register.

We will review the 90+ page order and will be ready to help your company evaluate the potential impact of the items included in this NPRM. Should you have any questions or wish to discuss this NPRM, just call or email me to discuss.