20160412_4947.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSION ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:GRACE SEAMAN
DATE:APRIL 7,2016
RE:INLAND TELEPHONE COMPANY’S MARCH 22,2016 TARIFF ADVICE
LETTER TO REVISE THE RESIDENTIAL MEASURED SERVICE
ACCESS LINE RATE AS REQUIRED BY THE FEDERAL
COMMUNICATIONS COMMISSION (FCC).
On March 22,2016,Inland Telephone Company (“Inland”or “Company”)filed a Tariff
Advice Letter requesting Commission approval to increase the monthly rate for residential
Measured Service Access Line from $16.00 to $18.00.Inland submits this tiling to comply with
the FCC’s USF/JCC Transfonnation Order No.11-161,released on November 18,2011 that
requires the Company to increase its rates to the levels set forth in this tariff advice or face a
corresponding reduction in its universal service support.Inland requests an effective date of
June 1,2016.
BACKGROUND
In the USF/ICC Transfonnation Order,the FCC established certain requirements for
rate-ot-retum carriers to receive federal high cost loop support (HCLS).One of the requirements
was that the carrier’s local rate plus state fees must meet the FCC’s established rate floor if it
wished to avoid a corresponding reduction in the HCLS.On June 10,2014,the FCC released
FCC 14-54 Report and Order that implemented a multi-year schedule to provide adequate time
for incumbent carriers and state commissions to make any necessary rate adjustments.For the
period between July 1,2016 and June 30,2017,the FCC will reduce support to the carriers for
any lines “below S 18.00 or the rate floor established by the 2016 rate survey,whichever is
lower.”See FCC 14-54 Report and Order at 4.
DECISION MEMORANDUM -1 -APRIL 7,2016
STAFF RECOMMENDATION
Staff has reviewed the filing and believes it meets the requirements set forth in the FCC
Orders.Thus,Staff recommends Commission approval of this compliance filing with an
effective date of June 1,2016.
COMMISSION DECESLON
Does the Commission agree?
&.4 QIact
Grace Seaman
Udmemosflnland ftc rate floor filing dcc memo
DECISION MEMORANDUM -2-APRIL 7,2016