FCC Proposes Extending the Jurisdictional Separations Freeze

In this Further Notice of Proposed Rulemaking, the Federal Communications Commission  proposed to extend, for an additional six years, the jurisdictional separations category relationships and cost allocation factors freeze for rate-of-return incumbent local exchange carriers (LECs). The current freeze extension is set to expire on December 31, 2024. Further extending this freeze will enable the FCC to continue to work with the Federal-State Joint Board on Jurisdictional Separations to determine next steps in amending the separations rules in light of sweeping technological and regulatory changes since these rules were initially adopted. We expect that the benefits of further extending the separations rules’ freeze likely outweigh the costs of allowing it to end. The FCC renewed the existing outstanding referrals to the Joint Board that include both comprehensive and interim reform measures to the separations process.