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Alaska Exchange Carriers Association Alaska Exchange Carriers Association February 10, 2012

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 How do current access charges fit in with the

FCC’s proposed transition to bill and keep? FCC s proposed transition to bill and keep?

• The Alaska access charge process is outlined in the

h l ( l) d Access Charge Manual (Manual) and may require some modifications or waivers to work though issues. Th RCA h ld l i th Al k I t t t

• The RCA should explain the Alaska Intrastate

Interexchange Access Charge Manual and pooling process in Alaska to the FCC.

• AECA can meet the transition timeline for the pooled

rate elements.

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 Will FCC scheduled intrastate access rate reductions

b i ith th J l 2014 t i Fi 9? begin with the July 2014 step in Figure 9?

• No, AECA pooled intrastate access rate reductions

, p could begin as early as July 1, 2012. This reduction would begin the step down of the current intrastate terminating information surcharge rate terminating information surcharge rate.

• AECA plans to file the intrastate rate change if

i d h i i f i required, as soon as the interstate rate information is available, to reconcile with the interstate rate that goes into effect July 1, 2012.

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 What is the effect of the cap on the current

i t t t t ? intrastate access rates?

• There is no effect on the current rate.

There is no effect on the current rate.

 What is the effect on current access charge

proceedings? proceedings?

• Demand filed on Jan 20, 2012 needs to be re-filed

J , to reflect the split between originating and terminating.

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*As of July 1, 2012 the J y , NECA info surcharge rate is lower than the AECA rate.

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 Will carriers need to file tariffs with separate

rates for originating and terminating access?

Y AECA l t fil i i ti d t i ti

• Yes, AECA plans to file originating and terminating

local switching and information surcharge pooled rates for 2012 on or before February 15, 2012.

• Terminating local switching and information

surcharge rates are frozen at the rate in effect on surcharge rates are frozen at the rate in effect on Dec.29, 2011.

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 Other concerns with current access

h ? charge structure?

 NECA will use the Local switching revenue in the calculation

• f the Eligible recovery ROR baseline. (892 ROR).

 The RCA should explain the difference between the NECA pool and AECA pool.

 NECA: Current Revenue Requirement, Projected Demand and True up mechanism True up mechanism.  AECA: Two year lag in updating revenue requirement, actual demand is split between two groups that update every other year and there is no true up mechanism. D d h dil d li d d i d i  Demand has steadily declined and is expected to continue to decline.  AECA local switching rate element has under recovered its revenue requirement as a result of this method. q

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