February 28, 2005

The FCC (Federal Communications Commission) said today it is adopting additional criteria for carriers to be designated eligible telecommunications providers, and this criteria will apply to carriers that have already received ETC status.

This designation is necessary for carriers to receive universal-service subsidies.

States are also encouraged to use the new standards. The FCC met its statutory deadline of Feb. 25 to release the new criteria.

It had a year from receiving recommendations from the Federal-State Joint Board on Universal Service. Details of the decision are not expected for several days, but the FCC issued a press release giving general outlines of the new criteria.

Existing ETCs must demonstrate compliance with the new criteria by Oct. 1, 2006.

The new criteria include the following:

--- Provide a five-year plan demonstrating how the subsidies will be used to improve coverage, service quality or capacity;

--- Demonstrate it will meet consumer-protection and service-quality standards;

--- Offer local usage plans comparable to the incumbent local exchange carrier.

An ETC may also be required to offer equal access to long-distance carriers if its competitors exit the market. Wireless carriers have fought equal-access requirements arguing that with bucket plans, it is hard, if not impossible, to offer equal access.

As part of its public-interest analysis, the FCC codified what had been current practice. It will evaluate for cream skimming if a carrier does not seek subsidies for an ILEC's entire service area.

ETCs will now be required to submit to annual certifications. As part of this certification, the FCC will need to know how many requests for service were not filled and how many complaints the carrier received per 1,000 lines.

Source: RCR News