High Cost
About High Cost:
- Overview of the Program
- Overview of the Process
- USAC FCC Filings
- HCLI Training Events
- Individual Outreach
- Video Tutorials
- Filing Appeals
- Red Light Status (FCC site)
- Requesting Confidential Information
- Understanding Audits
- Understanding Disaggregation
High Cost Tools:
Step 1: Safety Valve Support
Safety Valve Support (SVS) is a sub-component of High Cost Loop (HCL) support, which is available to competitive carriers providing service in the areas of rural price-cap and rate-of-return incumbent carriers and designated as eligible telecommunications carriers (ETCs) by their state commissions or the Federal Communications Commission (FCC).
Safety Valve Support (SVS) is support "above the cap" that is available to incumbent carriers that acquire high-cost exchanges and make substantial post-transaction investments to enhance these exchanges. If HCL support is not capped in a particular year, SVS is not available to carriers.
SVS is based on the difference between an acquiring carrier's expense adjustment at the end of its index year and subsequent year expense adjustments. Specifically, SVS is 50% of the difference between the index year HCL support amount and the HCL support amount in subsequent years. SVS is subject to an overall cap of no more than 5% of the rural HCL cap in any given year.
SVS is available to competitive ETCs filing line count data consistent with the acquired exchanges at the same per-line rate as the ILEC in whose service area the CETC is serving lines.
SVS is not retroactive. It is available, however, on a going-forward basis for new investment in acquired exchanges by rural carriers currently operating such acquired exchanges.
SVS is covered in Subpart D of Part 54 of the FCC's rules (47 C.F.R. § 54.305.).
