The Federal Communications Commission has reconsidered rules adopted in the Rate of Return Reform Order relating to rate-of-return local exchange carriers’ provision of consumer broadband-only loops (CBOLs). The Commission revised its rules to replace the surrogate cost method for determining the cost of CBOLs with rules employing existing separations and cost allocation procedures. It also revised the rule requiring rate-of-return carriers to impute on CBOLs an amount equal to the Access Recovery Charge (ARC) that could have been assessed on a voice or voice/broadband line to better implement its intent to maintain the balance between end user charges and universal service adopted in the 2011 USF/ICC Transformation Order. Finally, the Commission clarified two matters pertaining to reductions in Connect America Fund Broadband Loop Support (CAF BLS) due to competitive overlap.
