Immediate implementation of the results of an FCC urban rate...

Immediate implementation of the results of an FCC urban rate survey (CD March 21 p14) would lead to a dramatic increase in the residential phone rates that many small eligible telecom carriers (ETCs) in Washington state and across the U.S. must have in place by July 1, said the Washington Utilities and Transportation Commission (http://bit.ly/1hvLUzF). The ETCs must have the rates in place to continue to receive the full level of high-cost loop support (HCLS) provided from the Connect America Fund (CAF). The contemplated increase in the urban rate floor from $14 per month to $20.46 monthly would be a dramatic price increase implemented within a very short period of time, said the Washington commission in comments posted Tuesday in FCC docket 10-90. It said implementation of the new urban rate floor should be delayed and then phased in. The Public Utilities Commission of Ohio (PUCO) also expressed concern (http://bit.ly/Pe6biP) about the $6.46 rate floor increase, saying standalone phone service is price-regulated in the state. ILECs that have received basic local exchange service (BLES) pricing flexibility may increase their BLES rate by no more than $1.25 during any 12-month period, leaving them short of meeting the threshold to receive full-level HCLS, said PUCO’s comments also posted in the docket Tuesday. “If the benchmark rate continues to increase at a proportionately higher level than Ohio ILEC BLES rate increases, these carriers will never reach the benchmark rate, resulting in many of Ohio’s small, rural ILECs losing an ever-increasing amount of the high-cost support upon which they heavily rely to provide quality telecommunications services."