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 NEWS  News  media  Information  202  /  418-  0500  Fax-  On-  Demand  202  /  418-  2830  Internet:  http://  www.  fcc.  gov  ftp.  fcc.  gov  Federal  Communications  Commission  1919  -  M  Street,  N.  W.  Washington,  D.  C.  20554  This  is  an  unofficial  announcement  of  Commission  action.  Release  of  the  full  text  of  a  Commission  order  constitutes  official  action.  See  MCI  v.  FCC.  515  F.  2d  385  (D.  C.  Cir.  1974). 
 Report  No.  CC  98-  21  COMMON  CARRIER  ACTION  July  17,  1998 
 FCC  ASKS  FEDERAL-  STATE  JOINT  BOARD  FOR  RECOMMENDATIONS  REGARDING  UNIVERSAL  SERVICE  SUPPORT  FOR  NON-  RURAL 
 CARRIERS  THAT  SERVE  HIGH  COST  AREAS  (CC  Docket  96-  45) 


 In  an  Order  released  today,  the  FCC  asked  the  Federal-  State  Joint  Board  on  Universal  Service  for  recommendations  related  to  the  amount  of  universal  service 
 support  that  non-  rural  telephone  companies  should  receive  for  serving  high  cost  areas.  This  Commission  noted  that  further  coordination  with  state  regulators  should  provide 
 valuable  input  that  will  enhance  the  development  of  universal  service  and  competition  policies. 


 Today's  Order  refers  to  the  Joint  Board  issues  that  the  state  members  of  the  Board  had  asked  to  review,  and  it  requests  that  the  Board  issue  a  recommended  decision 
 on  the  designated  issues  by  November  23,  1998.  The  Commission  will  then  consider  the  Joint  Board's  recommendations  before  adopting  a  new  mechanism  for  determining 
 high  cost  support  for  non-  rural  carriers.  In  order  to  allow  sufficient  time  for  the  Joint  Board's  deliberations  and  for  the  Commission  to  receive  public  comment  on  the  Joint 
 Board's  recommendations,  the  Commission  extended  to  July  1,  1999,  the  implementation  date  for  the  revised  mechanism.  In  so  doing,  the  Commission  noted 
 that  the  benefits  of  getting  further  input  from  the  Joint  Board  justify  the  six-  month  extension.  The  Commission  also  emphasized  that,  during  the  extension  period,  there 
 will  be  no  change  to  the  mechanism  for  determining  universal  service  support  for  non-rural  carriers  (as  well  as  rural  carriers)  that  serve  high  cost  areas;  thus,  existing  levels  of 
 high  cost  support  will  be  maintained,  and  consumers  in  high  cost  areas  will  continue  to  enjoy  access  to  affordable  telephone  service. 
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 NEWS  News  media  Information  202  /  418-  0500  Fax-  On-  Demand  202  /  418-  2830  Internet:  http://  www.  fcc.  gov  ftp.  fcc.  gov  Federal  Communications  Commission  1919  -  M  Street,  N.  W.  Washington,  D.  C.  20554  This  is  an  unofficial  announcement  of  Commission  action.  Release  of  the  full  text  of  a  Commission  order  constitutes  official  action.  See  MCI  v.  FCC.  515  F.  2d  385  (D.  C.  Cir.  1974). 
 (over) 
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 The  issues  referred  to  the  Joint  Board  include  the  following: 
 oAn  appropriate  methodology  for  determining  the  amount  of  high  cost  support  for  non-rural  carriers,  including  a  method  for  distributing  support  among  the  states  and, 
 if  applicable,  the  share  of  total  support  to  be  provided  by  federal  mechanisms.  The  Commission  asked,  if  the  current  "25/  75"  approach  is  maintained,  under 
 what  circumstances  a  state  or  carrier  should  qualify  to  receive  more  than  25  percent  of  its  total  high  cost  support  from  federal  support  mechanisms. 


 oThe  extent  to  which  federal  universal  service  support  should  be  applied  to  the  intrastate  jurisdiction.  Along  these  lines,  the  Commission  asked  (a)  whether  and 
 how  interstate  access  charges  should  be  reduced  to  reflect  the  extent  to  which  federal  universal  service  support  removes  subsidies  that  are  currently  implicit  in 
 interstate  access  charges,  (b)  whether  and  to  what  extent  federal  universal  service  policy  should  support  state  efforts  to  make  intrastate  support 
 mechanisms  explicit,  and  (c)  questions  concerning  the  relationship  between  the  jurisdiction  to  which  universal  service  funds  are  applied  and  the  appropriate 
 revenue  base  upon  which  contributions  should  be  assessed. 
 oTo  what  extent,  and  in  what  manner,  is  it  reasonable  for  providers  to  recover  universal  service  contributions  through  rates,  surcharges,  or  other  means. 


 Action  by  the  Commission,  July  13,  1998,  by  Order  and  Order  on  Reconsideration  (FCC  98-  160).  Chairman  Kennard,  Commissioners  Ness,  Powell,  and 
 Tristani,  with  Commissioner  Furchtgott-  Roth  concurring  and  issuing  a  separate  statement. 


 -FCC- 
 News  Media  contact:  Rochelle  Cohen  at  (202)  418-  0253. 
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 Common  Carrier  Bureau  contact:  Chuck  Keller  at  (202)  418-  7380. 
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