WTA Applauds FCC Waiver on Budget Control Mechanism
WASHINGTON, D.C. (May 24, 2023) – WTA – Advocates for Rural Broadband applauds the FCC for waiving the application of the budget control mechanism for rate-of-return carriers that receive High Cost Loop Support (HCLS) and Connect America Fund Broadband Loop Support (CAF-BLS). In waiving the application of the BCM, the FCC found that absent a waiver, the projected reduction in support would exceed 18%, at a time when “most legacy rate-of-return carriers…continue to face cash flow issues and increased expenses as they emerge from the pandemic.”
“We’re grateful to Chairwoman Rosenworcel and her fellow Commissioners for approving this Order,” said Derrick Owens, WTA’s Senior Vice President of Government & Industry Affairs. “As we stated in several ex parte meetings with Commission staff, application of the waiver would not only have rendered the affected high-cost support insufficient and unpredictable but would also have been inequitable because the lost support would have been predominately reimbursement for dollars that were previously spent to extend and upgrade broadband networks during the COVID-19 pandemic. WTA is committed to working with the FCC as it re-evaluates the deployment obligations and funding levels for our member companies in the months ahead.”
