FCC Reserves Surrendered ETC Support For USF Reforms

The FCC has given instructions for implementing merger-related commitments by Verizon Wireless and Sprint Nextel Corp. to surrender high-cost universal service support and has directed that the surrendered support “be reserved as a potential down payment on proposed broadband universal service reforms.”

In an order and notice of proposed rulemaking (NPRM) adopted Aug. 31 and released today in Wireline Competition docket 05-337 and Common Carrier docket 96-45, the FCC essentially rejected a request by Corr Wireless Communications LLC to redistribute Verizon Wireless’s and Sprint Nextel’s surrendered support to other competitive eligible telecommunications carriers (ETCs), saying that so long as Verizon Wireless and Sprint Nextel remain competitive ETCs in a given state, their support is included in the Universal Service Administrative Corp.’s state-by-state calculations of competitive ETC support with the FCC-established cap, even if they do not collect the support for which they are eligible.

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