Wisconsin Stat. § 196.218(3)(c) authorizes the Commission to “designate by rule the classes of providers or other persons subject to par. (a) and the required rates of contribution for each class.” Wisconsin Stat. § 196.218(4u), relating to the TEPP, states that the “[C]ommission shall promulgate rules establishing requirements and procedures for awarding grants under this subsection.” Wisconsin Stat. § 196.218(5)(b), relating to the uses of the USF dollars, states that the “[C]ommission shall promulgate rules to determine whether a telecommunications provider, the customers of a telecommunications provider or another person shall be assisted by the universal service fund for any use under par. (a) 1. and 4.” Wisconsin Stat. § 196.218(5m) states that the “[C]ommission shall review and revise as appropriate rules promulgated under this section.” Wisconsin Stat. § 227.11(2) authorizes agencies to promulgate administrative rules. 5. Estimate of amount of time that state employees will spend developing the rule and of other resources necessary to develop the rule:
The Commission estimates that approximately 275 hours of employee time will be required to develop these rules.
6. List with description of all entities that may be affected by the proposed rule:
All telecommunication providers may be affected by changes to PSC 160.
7. Summary and preliminary comparison of any existing or proposed federal regulation that is intended to address the activities to be regulated by the rule:
There is both a state USF and a federal USF. The state and federal funds and programs are complementary rather than duplicative.
“Eligible Telecommunications Carriers” (ETCs) are designated by the Commission and are, thereafter, eligible for funding from the federal USF and for certain funding from the state USF. ETC status was created by the FCC, and codified in 47 U.S.C. § 214(e)(2). Under FCC rules, state commissions are responsible for designating eligible providers as ETCs.2
Designation as an ETC is required if a provider is to receive federal USF funding. ETC designation is also required to receive funding from some, but not all, state universal service programs. The FCC established a set of minimum criteria that all ETCs must meet. These are codified in the federal rules.3 The 1996 Telecommunications Act states that, “A State may adopt regulations not inconsistent with the Commission’s rules to preserve and advance universal service.”4 A court upheld the states’ right to impose additional conditions on ETCs in Texas Office of Public Utility Counsel v. FCC, 183 F.3d 393, 418 (5th Cir. 1999). Therefore, while states must examine the federal requirements, they are allowed to create additional requirements. Wisconsin has done so. 447 U.S.C. § 254(f).
The federal USF provides funding to ETCs that are found to serve high-cost areas. That funding is to be used to help cover the costs of expanding infrastructure into those areas. Doing so should help ensure that rates in those areas stay lower since rates need not provide all the funds for that expansion. The Wisconsin USF provides reimbursement to providers that offer credits to customers when rates are higher than as designated in s. PSC 160.09. The federal USF also includes Lifeline and Link-Up programs to assist low-income customers. The Wisconsin Lifeline and Link-Up programs are structured to complement the federal program and to take advantage of the available federal Lifeline and Link-Up funds.
The federal USF assessment applies to all carriers, including wireless carriers, and is assessed based on interstate revenues. The state USF assessment applies to all providers, including wireless providers, and is assessed based on intrastate revenues. Wisconsin exempts certain providers from assessment, such as those with under $200,000 in intrastate revenues.
8. Anticipated economic impact of implementing the rule:
While it is difficult to predict the expected financial impact before the rule is written, at this time it is expected to be moderate.
Contact Person:
Dated at Madison, Wisconsin, the 1st day of November, 2018.
(See PDF for image)
Steffany Powell Coker
Secretary to the Commission
