FCC Temporarily Waives Budget Control Mechanism for Legacy Rate-of-Return Carriers


The FCC has issued an Order waiving the application of the budget control mechanism for rate-of-return carriers that receive legacy high-cost universal service support for the July 2023 to June 2024 tariff year.  The budget control mechanism reduces traditional legacy high-cost support mechanism claims by carriers as necessary to meet budget constraints.  The FCC has determined that a waiver of the application of budget control mechanism, effectively reducing the budget constraint to 0%, is warranted given the substantial reduction in support that would result from imposition of the budget constraint, which would otherwise exceed 18%.

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