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 STATEMENT  OF  COMMISSIONER  MICHAEL  J.  COPPS 
 Re:  Multi-  Association  Group  (MAG)  Plan  for  Regulation  of  Interstate  Services  of  Non-  Price  Cap  Incumbent  Local  Exchange  Carriers  and  Interexchange  Carriers,  Report  and  Order 
 and  Second  Further  Notice  of  Proposed  Rulemaking 
 I  support  today’s  decision  to  update  and  refine  aspects  of  the  MAG  access  reform  plan  for  rate-  of-  return  carriers.  The  measured  step  we  take  in  adjusting  the  all-  or-  nothing  rule  is  the 
 right  one.  On  the  one  hand,  the  all-  or-  nothing  rule  reflects  a  legitimate  concern  with  improper  cost  shifting  between  rate-  of-  return  and  price  cap  companies.  On  the  other,  the  rule  may  deter 
 small  and  rural  carriers  interested  in  acquiring  lines  from  price  cap  carriers  and  then  investing  in  and  improving  their  facilities.  Our  approach  here—  permitting  rate-  of-  return  carriers  to  convert 
 acquired  price  cap  lines  back  to  rate-  of-  return  regulation—  strikes  the  appropriate  balance. 
 When  the  MAG  plan  was  adopted,  I  expressed  concern  about  the  abridged  process  leading  to  our  consideration.  Although  we  are  well  down  the  road  already,  I  still  have  concerns 
 about  the  impact  of  this  plan  on  rural  consumers.  We  have  a  duty  to  ensure  that  all  Americans  have  access  to  reasonably  comparable  services  at  reasonably  comparable  rates.  I  urge  the 
 Commission  to  monitor  the  impact  of  this  plan  to  ensure  that  it  provides  the  stability  necessary  for  investment  in  rural  America. 
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