[Federal Register Volume 59, Number 174 (Friday, September 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-22193]
[[Page Unknown]]
[Federal Register: September 9, 1994]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 36
[CC Docket No. 80-286; FCC 94-199]
Establishment of a Joint Board
AGENCY: Federal Communications Commission.
ACTION: Proposed rule; notice of inquiry.
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SUMMARY: The Federal Communications Commission has adopted a Notice of
Inquiry (Notice) inviting comment on the desirability of revising the
assistance mechanisms contained in the jurisdictional separations rules
applicable to the Universal Service Fund (USF) and Dial Equipment
Minute (DEM) weighting. The Notice asks that interested parties comment
on whether a notice of proposed rulemaking to revise the current rules
should be issued. The Notice also seeks comment on a variety of
alternative assistance mechanisms and, in addition, requests that
interested parties propose additional alternatives for possible
inclusion in a subsequent notice of proposed rulemaking. The intended
effect of adopting the Notice is to examine, in light of changes in the
telecommunications industry and associated regulatory changes, the
extent to which the existing USF and DEM weighting rules and potential
alternatives promote universal service, competition, and efficient
investment and operation, and to determine whether a notice of proposed
rulemaking should be issued.
DATES: Comments must be filed on or before October 28, 1994, and reply
comments must be filed on or before December 2, 1994.
ADDRESSES: Federal Communications Commission, 1919 M Street, N.W.,
Washington, D.C. 20554.
FOR FURTHER INFORMATION CONTACT:
Deborah A. Dupont, Common Carrier Bureau, Accounting and Audits
Division, (202) 418-0873.
SUPPLEMENTARY INFORMATION: The Notice proposes to undertake an
evaluation of the existing USF and DEM weighting assistance mechanisms,
explaining that the past several years of experience with those rules
should assist the Commission in evaluating the current rules and
prospective alternatives. The Notice also requests comment regarding
variations on two primary alternatives to the present assistance
mechanisms.
Assistance Based on Reported Costs. First, the Notice asks
interested parties to consider and comment on modifications to the
existing USF rules, which provide assistance to local exchange carriers
(LECs) based upon their reported local loop costs. The Notice requests
comment upon the definition of costs used to determine assistance,
specifically the possibility of basing assistance upon the combination
of local loop costs and switching costs (which are currently the basis
for DEM weighting assistance). The Notice also raises the question of
whether switching costs per subscriber vary significantly among LECs.
The Notice asks interested parties to address the possibility of
eliminating or reducing support for LECs serving large study areas or
non-rural areas. Finally, the Notice seeks comment regarding several
possible changes in the existing formula for USF assistance, including
establishing a sliding scale of declining assistance, changing the
percentage of assistance for above-average costs, and changing the
threshold for high-cost assistance.
Assistance Based on Proxy Factors. Second, the Notice asks
interested parties to comment on the possibility of basing assistance
to local service providers on the application of proxy factors rather
than on reported costs, explaining that proxy factors could promote
increased efficiency and cost control. The Notice describes several
alternative proxy methods and, in addition, requests that commenters
propose additional alternatives that could preserve universal service
while promoting efficient operation and competition in the provision of
telecommunications services.
The proxy approaches described in the Notice include the following
alternatives for use as proxy factors: The number of subscriber loops
per exchange, a combination of study area size and population density,
and a combination of a proxy factor for cost and a proxy factor for
general need (such as the ratio of average income to the cost of living
in the area served). The Notice also asks interested parties to
evaluate the merit of using proxy factors to make an initial
determination of the amount of high-cost assistance to be directed to
each state jurisdiction, and then using reported costs to determine the
amount of assistance provided to individual carriers. Under such a
system, the Notice requests comment regarding possible administration
of the assistance plan by state regulatory commissions, pursuant to
requirements set by the Commission. Finally, the Notice requests
comment upon the possibility of establishing a voucher or credit system
for telecommunications users, who would be allowed to claim high-cost
assistance credits on their local service bills from the carrier of
their choice.
Copies of the Notice can be obtained from International
Transcription Services, Room 640--1990 M Street, N.W., Washington, D.C.
20036, telephone number: (202) 857-3800.
Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 94-22193 Filed 9-8-94; 8:45 am]
BILLING CODE 6712-01-M