Rural providers ask courts to repeal USF cap

Rural wireless carriers asked a federal appeals court to review a Federal Communications Commission decision to impose an interim cap on high-cost universal service fund payments to eligible telecommunications carriers. The legal challenge, filed at the U.S. Court of Appeals for the District of Columbia Circuit, is being pursued by the Rural Cellular Association, Cellular South Licenses Inc., N.E. Colorado Cellular Inc., the Cellcom Companies, Smith Bagley Inc., Carolina West Wireless Inc., Bluegrass Cellular Inc., MTPCS L.L.C. and Leaco Rural Telephone Cooperative. The companies previously asked the FCC to reconsider and put on hold the controversial cap ruling in May, but they withdrew their petition for reconsideration in view of the new court appeal. The wireless providers claim the cap is based on inaccuracies, faulty assumptions, skewed legal reasoning as well as being at odds with congressional direction and the principle of competitive neutrality.