Monday, July 16, 2012

ETC's Punched in Face

Much like the way CLEC's didn't listen to the rumblings that UNE-P was going away, ETC's weren't listening that the USF reform was going to change their business lives. And today the United States Court of Appeals for the District of Columbia upheld the FCC decision to reclaim USF wireline money for broadband instead.

"The FCC has released an Order amending its rules to reclaim high-cost universal service support surrendered by a competitive eligible telecommunications carrier (ETC) when it relinquishes ETC status in a particular state." [in Jan., 2011, Bennett Law]

RLEC - the Rural phone companies - have been under siege as people move to cable or cellular instead of wireline. The uSF Reform is going to change their business models too.

In telecom, you have to be ready for change. You have to listen to the rumblings in DC, because they are seldom wrong. It may take some time, but that is time that the service provider should be utilizing to re-think its business model.

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