Significant Reform of Intercarrier Compensation System – Eventual Move to “Bill-and-Keep”

The FCC today voted on a package of reforms of the universal service system and the intercarrier compensation regime, combining some specific actions to deal with immediate problems with a set of steps to phase out intercarrier compensation payments entirely over time, and move to a “bill-and-keep” system.

The FCC did not release the text of its actual order, which is reported to be 500 or more pages in length. We will provide a detailed summary and analysis of that order when it is released. However, the FCC did release an “Executive Summary” of its to-be-issued ruling. This update is based on the Executive Summary. As always, the devil will be in the details.