WASHINGTON (CN) – Local telephone companies existing at the breakup of AT&T could see a two year freeze on cost allocations to their interstate and intrastate service, under rules proposed by the FCC.
A freeze on so-called jurisdictional separations has been in place since 2001 and the Federal Communications Commission says this is good for carriers because they do not have to reallocate their cost structures, which might result in higher rates for developing technologies and more expensive service areas.
The freeze also reduces the regulatory burden on carriers at a time when the FCC is considering comprehensive reform on cost separations, which might require carriers to start separating costs in a new way once they have just finished a new apportionment between interstate and intrastate jurisdictions.
The public has until April 5 to comment on the proposed rules. Reply comments to the original round of comments will be accepted until April 12.
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