Defining Recoverable Expenses for Rate-of-Return Providers

As the Federal Communications Commission begins to explore potential changes to its regulations for rate-of-return carriers, we both wholeheartedly support action to curb impermissible expenditures.  The public trust is violated, if or when bad actors take extensive leeway in defining what is acceptable for reimbursement by the FCC and ratepayers.  Past stories highlight spending on personal mansions, fancy boats, lavish parties, and country club memberships, just to name a few.

Thankfully, after months of collaborative discussions both internally and with representatives of two major trade associations, National Cable & Telecommunications Association (NTCA) and Wireless Technology Association (WTA), we have produced a list of expenses that should be categorically excluded from reimbursement.  While we may not see eye-to-eye on many issues, we agree that this list is the bare minimum of what the Commission should accept as we seek to make the high-cost program more efficient.  It addresses the most egregious activities and brings needed reform and clarity to the program.  These exclusions should be considered for adoption within the Commission’s other USF programs as well.