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FCC Requests Comment On Proposal To Subject Cable Operator Pole Attachments Used To Provide VoIP Services To The Telecommunications Rate Formula

August 27 , 2009
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The FCC has requested comment on a declaratory ruling request from public electric utility companies American Electric Power Service Corporation, Duke Energy Corporation, Southern Company, and Xcel Energy Services Inc. that the telecommunications rate formula for pole attachments applies to cable system pole attachments when they are used to provide Voice over Internet Protocol (VoIP) voice service. According to the utilities, because cable companies offering VoIP services hold themselves out as telephone service providers no different than traditional switched telephone service providers, the lower rates they pay under the cable rate formula are unfairly discriminatory. (The telecommunications rate formula typically produces attachment rates 50-80% higher than the cable rate formula.) The utilities thus seek an FCC ruling that the telecommunications rate formula, and not the cable rate formula, is the proper formula when cable operator attachments are used to provide both cable and VoIP services.

Comments are due on or before September 24, 2009 and reply comments on or before October 09, 2009. Please contact us with any questions regarding this matter.