FCC Freezes Rate Floor Pending Further Review

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The Federal Communications Commission has stopped a federally mandated rate increase for certain rural phone customers, pending review of an FCC policy known as the “rate floor.” The FCC froze the current minimum rate for local voice services at $18 per month for customers of companies that receive support from the FCC’s universal service program. That minimum rate, or rate floor, was scheduled to rise to $20 on July 1, and to $22 on July 1, 2018. The freeze will stay in effect until the FCC reviews its rate floor policy, or no more than two years. The review was launched by the Commission in a Notice of Proposed Rulemaking seeking comment on the policy. Comment deadlines have not been announced.

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