FCC Clarifies Rural Telco ARC Imputation Duty, Provides Limited Part 69 Cost Waiver
FCC staff said rate-of-return telcos must impute an access recovery charge (ARC) in some circumstances whether they opt to receive support based on an new Alternative Connect America Cost Model (A-CAM) or an updated legacy Connect America Fund Broadband Loop…
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Support (CAF BLS) mechanism. The Wireline Bureau acknowledged there had been uncertainty about the scope of the ARC imputation. "We clarify that this imputation obligation applies not only to rate-of-return LECs that receive support from CAF BLS, but also to those that receive support from A-CAM," the bureau said in an order in docket 10-90 in Thursday's Daily Digest. "Rate-of-return LECs must impute an amount equal to the ARC they assess on voice/broadband lines on their Consumer Broadband-only Loops receiving support either from CAF BLS or A-CAM." In another order, the bureau on its own motion granted rate-of-return carriers "a waiver of sections 69.311 and 69.416 of the Commission’s rules to limit the costs that must be shifted from the Special Access category to the Consumer Broadband-only Loop category in certain specific circumstances." The bureau said the revised Part 69 rules were intended to require rural carriers "to move costs of consumer broadband-only loops from the Special Access category to the new Consumer Broadband-Only Loop category." But the bureau said the "surrogate cost methodology" could over-allocate costs out of special access, reducing rates and revenue more than intended -- potentially, even to zero -- so it was providing a limited waiver from the methodology for December tariff filings in certain circumstances it detailed.