High Cost
About High Cost:
- Overview of the Program
- Overview of the Process
- Site Visits
- Training Events
- Filing Appeals
- Red Light Status (FCC site)
- Requesting Confidential Information
- Understanding Audits
- Understanding Disaggregation
- USAC FCC Filings
High Cost Tools:
Step 1: Local Switching Support
Local Switching Support (LSS) is available to rural incumbent carriers serving 50,000 lines or fewer (mostly rate-of-return and some price-cap carriers) as well as competitive carriers providing service in the areas of these rural companies, which must be designated as eligible telecommunications carriers (ETCs) by their state commissions or the Federal Communications Commission (FCC).
Local Switching Support is designed to help carriers recoup some of the high fixed switching costs of providing service to fewer customers. LSS helps keep customer rates comparable to more densely populated urban areas.
Prior to 1998, this support was known as Dial Equipment Minute, or DEM, weighting and was recovered from switched access charges. In 1998, DEM weighting was removed from local switching rates, established as LSS, and made an explicit part of the High Cost Program.
LSS is subject to an annual "true-up" process to adjust support amounts based on actual incumbent carrier data submitted no later than 15 months after the end of the calendar year for which historical data are submitted.
LSS is covered in Subpart D of Part 54 of the FCC's rules (47 C.F.R. § 54.301 et seq.).
