FCC Record, Volume 26, No. 22, Pages 17663 to 18414, Supplement (November 18, 2011) Page: 17,724
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carriers expect to raise their SLCs, presubscribed interexchange carrier charges, or other interstate rates as
a result of any reform that would eliminate IAS. For clarity, however, we specifically note that while
carriers receive support under CAF Phase I, the amount of their frozen high cost support equal to the
amount of IAS for which each carrier was eligible in 2011 as being received under IAS, including, but not
limited to. for the purposes of calculating interstate rates will be treated as IAS for purposes of our
existing rules. To the extent that a carrier believes that it cannot meet its obligations with the revenues it
receives under the CAF and ICC reforms, it may avail itself of the total cost and earnings review process
described below.246
153. Elimination ofState Rate Certification Filings. Under section 54.3 16 of our existing
rules, states are required to certify annually whether residential rates in rural areas of their state served by
non-rural carriers are reasonably comparable to urban rates nationwide.47 As part of the reforms we
adopt today, however, we require carriers to file rate information directly with the Commission."48 For
this reason, we conclude that continuing to impose this obligation on the states is unnecessary, and we
relieve state commissions of their obligations under that provision.'
154. Hawaiian Telcom Petition for Waiver. I lawaiian Telcom, a non-rural price cap
incumbent local exchange carrier, previously sought a waiver of certain rules relating to the support to
which it would be entitled under the high-cost model.' As Hlawaiian Telcom explained, it received no
high-cost model support at all because support under the model was based not on the estimated costs of
individual wire centers but rather the statewide average of the costs of all individual wire centers included
in the model.2' In its petition, Hawaiian Telcom requested that its support under the model be
determined on a wire center basis, without regard to the statewide average of estimated costs calculated
under the high-cost model.22
155. In light of the reforms we adopt today for support to price cap carriers, we deny the
I lawaiian Telcom petition. We note that our reforms are largely consistent with the thrust of Hawaiian
Telcom's petition. Phase II1 support will not involve statewide averaging of costs determined by a model,
but instead will be determined on a much more granular basis. In Phase 1, we adopt, on an interim basis,
a new method for distributing support to price cap carriers. While we freeze existing support, we provide
incremental support to price cap carriers through a mechanism that, consistent with Hawaiian Telcom's
proposal, identifies carriers serving the highest-cost wire centers but does not average wire center costs in
(Continued from previous page)
Verizon and Verizon Wireless USF/IC(7 Tran.sfrination NVPRM Comments at 50-51; Windstream USF/I1CC
Transformation NPRM Comments at 44.
46 See infra Section XIII.G.
247 See 47 C.F.R. 54.316.
248 See infra para. 592.
249 We note that under our existing rules, states are also required to certify that carriers have used non-rural support
(i.e., high cost model support) for the provision, maintenance, and upgrading of the facilities and services for which
it is intended. See 47 C.F.R. 54.313. A similar obligation applies with regard to support to rural carriers. See 47
C.F.R. 54.314. As described in more detail below, we simplify cur rules and combine these two provisions. See
infra para. 613.
250 See Hawaiian Telcom, Inc. Petition for Waiver of Sections 54.309 and 54.313(d)(vi) of the Commission's Rules,
WC Docket No. 08-4 (filed Dec. 31, 2007).
2s" See id. at 4.
252 See id. at 1.17724
Federal Communications Commission
FCC 11-161
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United States. Federal Communications Commission. FCC Record, Volume 26, No. 22, Pages 17663 to 18414, Supplement (November 18, 2011), book, 2011; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc154713/m1/72/: accessed April 24, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.