RTFC Urges FCC To Adopt RLEC Plan for USF/ICC Reform

October 20, 2011

RTFC Capital Connections | Vol. 23, No. 10

Last week, RTFC sent a letter to all four Federal Communications Commission (FCC) commissioners urging them to adopt and implement the plan for reforming the Universal Service Fund (USF) and intercarrier compensation (ICC) regimes submitted by the associations representing small rural carriers on April 18, 2011, as amended by the “Consensus Framework” submitted on July 29, 2011 (the RLEC Plan). The FCC is expected to discuss—and potentially approve—a USF/ICC order at its October 27 meeting.

RTFC’s letter, which followed up an August 9 meeting with FCC staff (see “RTFC Meets with FCC To Discuss Impact of USF/ICC Proposals,” Capital Connections, August 18, 2011), asked the commission to “recognize and address the need for telcos to recover investments made in good faith reliance upon rules now in place” and “provide greater regulatory certainty to encourage future investment in rural markets.”

RTFC’s letter also cautioned the commissioners against making any changes to the RLEC Plan, reminding them that the plan is the product of compromise across different industry sectors, containing difficult conciliatory reductions to revenue support. RTFC explained that any changes to the RLEC Plan would create the substantial likelihood for unintended consequences.

RTFC called the RLEC Plan “the most detailed and credible proposal on the record before the commission for enacting USF and ICC reform” and encouraged the FCC to adopt and implement the plan so as to “allow investors, lenders and the industry to continue their work in a clearer and more certain regulatory climate.”

RTFC’s letter is available through the FCC’s Electronic Comment Filing System.

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