To prevent a LEC's interstate allocation from decreasing too rapidly, however, the FCC provided that no LEC's interstate allocation for NTS costs "shall decrease by a total of more than five percentage points from one calendar year to the next," when taking into account the combined effect of the reduction in SPF and the possible additional costs allocated to the interstate jurisdiction under the USF. 36.154(d)-(e) (describing manner in which SPF was to be calculated between 19). FCC, 838 F.2d 1307, 1313-17.ĭuring the phase-in period, LECs continued to use their respective SPFs to determine the interstate allocation for NTS costs, but each company's SPF was scheduled to diminish each year until 1993, when the interstate allocation was to be fixed at twenty-five percent. This scheme was affirmed on direct review. 36.641 (setting forth the manner for phasing in the USF after 1988). Like the flat allocation rate, the USF was phased in over an eight-year period. Ass'n, 6 FCC Rcd 1873, 1873 (1991) (USTA) (explaining that " he USF was established to further mitigate the impact of the change to the 25 percent allocator for carriers with high SPF allocators and higher than average NTS costs" and that the USF essentially "assigns additional costs to the interstate jurisdiction for carriers with NTS costs that are significantly above the national average"). This high cost allocation is recovered through the USF, supported through usage charges contained in the access charge rates paid by the IXCs." Brief for FCC at 8 see also In re United States Tel. The additional percentage of interstate allocation calculated each year depending upon whether the amount of any particular LECs' costs substantially exceed the national average. The FCC describes the USF as "a formula that allocates an additional percentage of the costs of high cost companies to the interstate jurisdiction, over and above the basic 25 percent allocation. In addition, the FCC created a Universal Service Fund (USF) to assist high cost LECs in maintaining universal telephone service. In an effort to prevent LECs' interstate allocations from dropping precipitously, the FCC elected to phase in the flat allocation rate over a period of eight years, ending in 1993. Specifically, the FCC determined that LECs would be allowed to allocate a flat twenty-five percent of their NTS costs to the interstate jurisdiction. While the SPF freeze was in effect, the FCC developed a new way to allocate NTS costs that was not dependent on a LEC's SPF. This temporary freeze was upheld on review. Concerned about the ever-increasing amount of NTS costs being allocated to the interstate jurisdiction, the FCC decided in 1982 to freeze temporarily LECs' SPFs at 1981 levels. By the early 1980s, some LECs' SPFs enabled them to allocate 85 percent of their NTS costs to the interstate jurisdiction. Because of the SPF multiplier, NTS costs were allocated to the interstate jurisdiction about three times as fast as actual interstate use. Between 19, the level of interstate calling increased substantially in relation to intrastate calling. 1984) (describing operation of Ozark Plan). This percentage figure was known as the subscriber plant factor (SPF). Under the Ozark Plan, NTS costs were assigned to the interstate jurisdiction based on a formula that, in effect, shifted approximately 3.3 percent of NTS costs to the interstate jurisdiction for every 1 percent of interstate use. In 1970, the FCC adopted the "Ozark Plan" to allocate costs associated with NTS equipment. The FCC has struggled for years to develop a formula to allocate NTS costs between federal and state jurisdictions. Similarly, when connecting callers in different local exchanges and different states, the call originates at a home or office within one LEC, proceeds through the LEC's network until it is connected to an IXC, crosses state boundaries through the IXC's network until it reaches a second LEC, and is finally connected through the second LEC's network to the receiving party. For example, when connecting customers in the same state and same local exchange, the call originates at a home or office within a LEC, and proceeds through the LEC's network or cables, wires, circuits, and switches until it reaches the receiving party. Many items of each LEC's equipment are used for both interstate and intrastate telephone calls. LECs provide local telephone service to customers within a given geographic calling area (a local exchange), while IXCs enable customers in different local exchanges to call each other. For the most part, telephone service within the United States is divided between local exchange carriers (LECs) and interexchange carriers (IXCs).
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |