Reconsideration of 1st Decision

• April, 1998 - FCC Reports to Congress

  • Will reconsider 75/25 funding

• July, 1998 - FCC Refers Issues to Joint Board

  • Alternatives to 75/25 funding
  • Report due 11/23/98
  • Delays non-rural” LEC funding to 7/1/99

• October 30, 1998 - Joint Board 2nd Recommendation

  • Some states will require additional federal support
  • Two-pronged test for support

    1. Forward-looking costs >> national average
    
    2. Inability to cover high-cost problem internally

  • Fund not “significantly larger than present (ie. $125M for NRLECs)
  • Uses statewide averages of cost

    1. Continues urban-to-rural implicit subsidies
    
    2. Joint board may revisit if competition threatens affordability

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