This month we continue our review and analysis of the Federal Communications Commission=s (AFCC@) May 7, 1997 trilogy of orders on Access Charge Reform, Universal Service Reform and Price Cap Performance Review. Focusing this month on Universal Service Reform, we review some of the highlights of the FCC=s Order by comparing CLEC positions on key issues to the decisions made by the FCC. Among the issues reviewed are the administration of the Universal Service programs, the elements of the calculation of high-cost support (benchmark and costs), the method of assessment of contributions and some aspects of the Schools and Libraries Program.
In this Report, we determine that:
generally, the FCC has taken actions which coincide with CLEC positions;
the FCC has postponed several decisions, providing further opportunity for persuasion by CLECs;
arguments can be made that even the issues on which the CLECs Alost@ are counterbalanced by the FCC=s determination to construct a universal service mechanism which is competitively neutral and which Awill be sustainable in a competitive environment@;1 and
the CLECs= own action of diversifying their revenue bases away from access revenues will help to mitigate the effects of the FCC=s decision to assess interstate revenues but not intrastate revenues for contributions to the universal service support for rural, insular and high-cost areas.
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