LONG.docx

July 12, 1996
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Dear 4:
Recently you wrote to the Idaho Public Utilities Commission requesting that the Commission designate 5 as “eligible telecommunications carriers” as defined by the federal Telecommunications Act of 1996 (the Act).  Your request focused on Section 214 (e) of the Act and its statement that only a carrier designated as an eligible telecommunications carrier can receive universal service support.  Because the Commission believes that it is not necessary at this time to designate carriers as eligible telecommunications carriers, the Commission will wait until next year to act on your request.
Section 254 (a) of the Act sets forth procedures for the Federal Communications Commission to review universal service requirements by creating a federal-state joint board on universal service.  The joint board will review FCC universal service regulations and make recommendations for changes to the FCC within nine months of the date of enactment of the Act.  Thereafter, the FCC must initiate a proceeding to implement the recommendations and complete the proceeding within fifteen months after the date of enactment.  Rules established by the FCC by this process must include definitions of the services that are supported by the federal universal support mechanisms and a specific timetable for implementation.  Section 254 (e) provides then that “after the date on which [FCC] regulations implementing the section take effect, only an eligible telecommunications carrier designated under section 214 (e)...” is eligible to receive federal universal support.  Section 214 (e) is unmistakably connected to Section 254 and the timetable for implementing new FCC regulations.
According to the timetable set forth in the Act, it is not necessary for a state commission to designate a carrier as an eligible telecommunications carrier until after the FCC has completed its review and promulgation of new universal service regulations.  That process, which should not affect the present eligibility of your companies to receive universal fund support, will be completed sometime next year.  Accordingly, the Commission will wait to designate carriers as eligible telecommuni­cations carriers after the close of the FCC process next year.  In the meantime, should your companies have any concerns or issues that might arise regarding their eligibility for universal support under the existing regulations, this Commission will do what it can to ensure that their support from the universal service fund is not interrupted.
Please contact me if you have any questions.
Sincerely,
Weldon B.  Stutzman
Deputy Attorney General
cc: Commission Secretary
cm/L-long.ws