High Cost

Incumbent Carriers

Rural and non-rural incumbent local exchange carriers (ILECs) serving people in high-cost areas, sparsely populated areas, or areas with dense or rough terrain are the major participants in the High Cost Program. A local exchange carrier is defined as "any person that is engaged in the provision of telephone exchange service or exchange access."

Competitive Carriers

Competitive carriers include competitive local exchange carriers and wireless providers, among others, that serve customers in the areas of rural and non-rural incumbents. Competitors may be eligible to receive High Cost support if they are designated as a competitive eligible telecommunications (CETCs) carrier by their state utility regulator or the FCC.

State Commissions

States have the primary responsibility for designating carriers as eligible telecommunications carriers (ETCs). The High Cost Program works with state utility regulators to determine ETC status and ETC service areas, to ensure that carrier certifications are received on time, and to respond to questions from state regulatory staff members.

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Last modified on 9/3/2008