WASHINGTON-Wireless carriers wishing to receive universal-service support do not have to provide service in order to receive eligible telecommunications carrier status.
ETC status is necessary for carriers to receive universal-service support subsidies.
“We find that to require the provision of service throughout the service area prior to designation effectively precludes designation of new entrants as ETCs in violation of the intent of Congress,” the Federal Communications Commission said in an Aug. 10 order.
While the issue applies to all competitive local exchange carriers, Western Wireless Corp. brought the issue to the FCC after the South Dakota Public Utilities Commission declined to grant Western ETC status until Western offered service statewide. While the FCC held off ruling specifically on the South Dakota case because it is in litigation, the agency said it was offering guidance through a declaratory ruling.
“In every single state, [incumbent LECs] come in with the South Dakota and Oklahoma decisions and urge the state to rule the same way,” said David Sieradzki, an attorney representing the Competitive Universal Service Coalition, noting that in addition to the South Dakota PUC ruling, an Oklahoma administrative law judge made a similar decision. The Oklahoma Corporation Commission has yet to rule in its case, awaiting action from the FCC, said Sieradzki.
“We are delighted that the FCC has taken decisive action to unblock the process for competitive carriers seeking to obtain ETC designations. This will encourage more carriers to compete to bring basic and advanced telecom services to consumers in high-cost and rural areas,” said Michele Farquhar, coalition lead counsel.
Western has led the coalition in urging the FCC to direct states to look more favorably on carriers wishing to compete against incumbents that receive universal-service subsidies.
“The FCC has removed a major obstacle to our company’s vision for competing with the incumbent carriers to bring innovative services to rural customers,” said Gene DeJordy, Western vice president for regulatory affairs.
FCC Commissioner Harold Furchtgott-Roth dissented in the ruling. “It is impossible to understand how failing to assign a new carrier [ETC] status could `prohibit’ or had the `effect of prohibiting’ it from providing service,” said Furchtgott-Roth.
Earlier this summer, the FCC set up a six-month process where carriers can be given ETC status for offering service on tribal lands. Several carriers have petitioned the FCC for ETC status so they could receive universal-service- support subsidies for serving tribal lands.
