FCC Forces CLEC Aureon to Recalculate its Interstate Switched Transport Rate

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The FCC has released a memorandum opinion and order concerning its investigation into whether Iowa Network Access Division d/b/a Aureon acted lawfully when applying an interstate switched transport rate contained in “Transmittal No. 36 of Tariff F.C.C. No. 1.” The Commission found that  Aureon, acting as a CLEC, must have a switched transport rate that complies with the Commission’s transitional switched access service rate rules.  Specifically, Aureon’s tariffed switched transport rate cannot exceed the lower of Aureon’s:  (1) rate cap; (2) CLEC benchmark; or (3) cost-based rate.  The Commission’s transitional switched access service rate rules impose both a rate cap for all LECs and a benchmarking obligation on Aureon.  The order also directs Aureon to amend its Tariff F.C.C. No. 1 to reflect the lower of the CLEC benchmark rate or the corrected cost-based rate.

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