Oral arguments in the court case challenging the FCC’s Report and Order (FCC Docket 10-90) reforming the intercarrier compensation system are scheduled for November 19, 2013, at the Denver Circuit Court. There are two major points of contention. First, does the FCC have the right to usurp the individual states rate-making authority? And second, does the Commission have the legal authority to create the Connect America Fund with dollars from the proposed Fund going to broadband providers despite the fact that broadband is not one of the USF mandated services under Section 254 of the 1996 Telecom Act? And while predicting the outcome, is at this point, a fool’s errand, some industry insiders believe hearing the case in Denver – rather than at the D.C. Circuit, which traditionally rules on communication policy – may tilt the deck slightly in favor of the FCC’s position.

The November date pretty much guarantees that they’ll be no decision until well into 2014. And with an appeal to the Supreme Court almost inevitable, it is unlikely they’ll be final legal resolution until 2016 or 2017!

What does it mean in the short term?  The FCC’s seven to nine year transition to bill-and-keep stays on schedule, and by July 1, 2013, price cap and rate-of-return carriers are required to file tariffs that reduce their intrastate terminating switched access rates to parity with their interstate terminating switched access rates. You can see the complete transition timeline and milestone dates below.

Carriers and service providers must respond to the FCC’s Order and CCMI can help you track, manage, and address these critical changes with a comprehensive suite of online and database services. Learn more about our TelView rate and tariff document service here and our CABSdb Pro access rate database service here.