The cost model that underpins a Universal Service reform proposal from six of the nation’s largest price cap telcos is now available from the Federal Communication Commission—and according to critics, it’s long overdue.
The six large price cap carriers in late July submitted a reform proposal (CP: AT&T, Verizon and other price cap carriers send broadband USF proposal to FCC) to the FCC that drew upon the CostQuest Associates Broadband Analysis Tool, or CQBAT, but that proposal drew fire from other stakeholders because the CQBAT was not included with the proposal.
In a supplemental protective order adopted September 9, the FCC said that in order to enable the public and commission to evaluate the price cap carriers’ proposal, also known as the ABC Plan, “coalition members have arranged for the public and the commission to have access to the cost model.”
Dissenters have been arguing since the proposal came out that it wasn’t fair for the cost model to be kept secret, particularly considering that the price cap carriers’ proposal is one of only three that the FCC seems to be seriously considering in developing Universal Service reforms (unfiltered: FCC narrows USF reform field down to three proposals). But at least one of those critics argued that the FCC’s release of the cost model was too long in coming.
In an editorial in the National Regulatory Research Institute’s September newsletter, Pennsylvania Public Utility Commissioner James Cawley argues vehemently against the price cap carriers’ proposal, attacking it on many fronts and also noting that the FCC announced the availability of the cost model only a month before the commission intends to vote on USF reform.
“For those seeking to oppose the Plan, this timeframe offers inadequate time to test the model’s inputs and assumptions,” wrote Cawley. “The FCC staff must be well along in its planning and drafting of the FCC’s order and is highly unlikely to make any major changes at this late date. Giving access to the cost model at this point is too little, too late.”
To obtain the cost model, interested parties must sign an acknowledgment agreement and a licensing agreement and submit both to the FCC. If approved by CostQuest, the applicant will receive a login and password to access the cost model under certain terms and conditions.
It’s not clear if requests from news media to review the cost model would be granted. But Connected Planet would welcome feedback from any communications service provider readers or other stakeholders who take the opportunity to review the model.