The industry has been, “shaken upside down”, because of the FCC’s order on USF and Intercarrier Compensation, so says Brent Christensen, president of MTA.  He explains that his organization and members are still trying to determine the impact of this order and how much it will cost end consumers.

The FCC order is causing uncertainty, particularly with regards to the CLEC operations of its members.  This uncertainty is causing some operators to delay new build-outs.  He explains that MTA-member CLECs constructed broadband networks in unserved and underserved rural areas; and there was a demand, as some of these communities have reached 80% penetration.  These networks were built under certain rules that are now being changed with the FCC’s order.

In this interview, Christensen points out that the FCC and the National Broadband Plan encourage mergers and consolidation of rural carriers.  Christensen alludes to the idea that there are limits to the benefits of scale, as his members have repeatedly demonstrated the importance of locally owned and managed companies in understanding the needs of the community.  This has resulted in not only better broadband, but better communities where there is a local telecommunications company.

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