CAF Cost Model Can't Treat XHC, Rural Areas, Wyoming PSC Says

The Connect America Fund (CAF) cost model "lacks sufficient focus to properly treat extremely high-cost," (XHC) sparsely populated areas of Wyoming, the Public Service Commission replied in FCC docket No. 09-197. It responded to CenturyLink and USTelecom initial comments. The PSC is concerned that the FCC hasn't realigned "frozen support" for price-cap eligible telecom carriers (ETCs) to offer voice service in XHC areas, especially since CenturyLink refused CAF Phase II in Wyoming. In states where the incumbent price-cap carrier rejected CAF II support -- as in Wyoming -- the PSC recommends that all Census blocks receive a portion of frozen support for the immediate future. After the competitive bidding process, Census blocks not awarded to a carrier should continue to get frozen support, the PSC said. The state commission encouraged its federal counterpart to require the continuation of ETC voice obligations.