Phone Bills Get FCC Cost-Cut Scrutiny: Zzz-Inducing Update
Published Date: 3/24/2025
Proposed Rule
Summary
The FCC is asking for your thoughts on how to update the Part 36 separations rules, which affect how phone companies split costs between state and federal services. This is important for companies and customers because it could change billing and funding rules. Comments are due by April 23, 2025, so don’t miss your chance to weigh in on potential changes that might impact money and services.
Analyzed Economic Effects
3 provisions identified: 1 benefits, 1 costs, 1 mixed.
Freeze of separations rules through 2030
The FCC extended the freeze of the Part 36 separations rules for rate-of-return incumbent local exchange carriers through December 31, 2030. That means carriers still subject to the freeze must continue operating under the existing frozen separations rules until at least 2030-12-31.
Possible comprehensive reform could raise costs
The FCC asked the Joint Board whether comprehensive reform of the separations rules is still in the public interest. The Commission noted that any new set of rules, if reformed, could create significant compliance burdens for the limited number of small carriers still subject to the separations rules.
Permanent freeze and unfreeze option under review
The FCC asked the Joint Board whether to adopt a permanent freeze of the separations rules. If the Joint Board recommends a permanent freeze, the Commission also asked whether carriers should be allowed to unfreeze their category relationships to update cost data, whether that opportunity should be available only once or periodically, and whether carriers could refreeze their category relationships.
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Key Dates
Department and Agencies
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