Additional BDS Carriers Transition to Incentive Regulation

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The FCC’s Wireline Competition Bureau has released a Public Notice announcing that rate-of-return local exchange carriers have elected, in 120 study areas, to transition their business data services offerings from rate-of-return to incentive regulation effective July 2, 2024, pursuant to the FCC’s rules.  The FCC previously provided BDS carriers the opportunity to elect BDS incentive regulation in 2019 and 2020 and such carriers had another opportunity this past May through the Enhanced A-CAM program.

BDS carriers transitioning to incentive regulation must detariff their BDS offerings no later than July 1, 2027.  Enhanced A-CAM recipients electing to transition their BDS offerings to incentive regulation must also detariff their low-capacity end-user channel termination services in competitive study areas within 36 months after those services are deemed competitive, pursuant to the FCC’s rules.

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