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Pennsylvania Approves Access Charge Reform

Intrastate carrier access rates in Pennsylvania will be coming down as a result of a June 30 decision by the Public Utility Commission (PUC). It’s estimated to reduce access charges by $50 million for Interexchange Carriers.

• The intrastate access rate will gradually be reduced to $2.50 per access line.
• Local exchange carriers can recoup losses by increasing residential and business rates over a four-year period.
• The PUC will begin a rulemaking proceeding to consider changes to the state’s Universal Service Fund.

The PUC’s latest move falls in line with the FCC’s National Broadband plan, part of which attempts to rebalance local service rates with actual costs, rather than being subsidized by customers’ long distance rates. The FCC’s plan also calls for the elimination of per-minute intercarrier compensation (ICC) charges over a ten-year period.

You can read more on my April 2010 blog about the effects of the National Broadband Plan on ICC.

Read the PUC press release here.