At its February 18, 2026 Open Meeting the FCC adopted an NPRM proposing significant changes to the existing Intercarrier Compensation Regime (ICC). In addition, an NPRM was adopted proposing reforms to the Lifeline Program. Please note the following:
The FCC adopted an NPRM entitled ” Reforming Legacy Rules for an All-IP Future; Accelerating Network Modernization”. As that title indicates, the FCC questions whether the existing ICC rules reduce the incentive for LECs to transition from TDM networks to IP-based technology and further asks would a transition to a bill and keep framework for the remaining intercarrier access charges, accompanied by deregulation, facilitate an industry-wide migration to all-IP networks. The Commission invites industry collaboration and input on the most effective and efficient strategies for transitioning to a Bill and Keep framework and all-IP networks. Specifically, the wide-ranging NPRM proposes and seeks comment on the following:
* The NPRM proposes to finalize the transition of intercarrier access charges, which began with the 2011 USF/ICC Transformation Order, to Bill and Keep. The proposal would cap the remaining intrastate originating switched access charges for rate of return and competitive LECs and transition these charges, along with the remaining interstate originating and terminating switched access charges, to a Bill and Keep framework over a 24 month period.
* Regarding cost recovery, the NPRM proposes that carriers recover their costs directly from end-users and seeks comment on eliminating ex ante pricing regulation of end-user charges as well as the detariffing of end-user charges. Further, it’s proposed that CAF-ICC support should be phased out and comment is sought on the need for any additional funding that may be required to facilitate the IP transition.
* The NPRM seeks comment on how to define the network edge for allocating transport cost responsibilities between carriers, both during the transition and after full IP migration is achieved. (see ICORE Blog dated 2/6/26 regarding network interconnection).
* In addition to the above, the NPRM proposes and seeks comment on deregulating and detariffing domestic interstate services and international services and eliminating outdated reporting requirements.
* Comments in this proceeding are due 60 days after Federal Register publication and Reply Comments are due 90 days after publication in the Federal Register.
The NPRM regarding the Lifeline Program is entitled “Lifeline and Link UP Reform and Modernization”. The NPRM seeks comment on reforms to the Lifeline Program to ensure that federal Lifeline funds go to eligible Americans, enhance program integrity, and ensure that service providers comply with the Commission’s rules and regulations. The specifics of the NPRM are as follows:
* The NPRM proposes that Lifeline is a federal public benefit restricted to U.S. citizens and qualified aliens and seeks comments on enhanced requirements to ensure that program participants are legal beneficiaries of Lifeline discounts. Further, it is proposed and comment is sought on requiring the provision of the full nine-digit Social Security Number from applicants and using the Systematic Alien Verification for Entitlements program to support household eligibility verifications.
* Comment is sought on requiring secondary verification of a consumer’s consent to enroll in Lifeline or to transfer to a new ETC. In addition, comment is sought on workable minimum data capacity and speeds for Lifeline supported broadband services and maintaining support for voice-only services.
* The NPRM also seeks comment on codifying existing requirements that ETCs take steps to ensure that it does not already provide Lifeline-supported service to someone else in an applicant’s household.
* Comment is sought on rule changes designed to improve program integrity and efficiency, including whether to continue to allow “opt-out” states to use their own verification processes.
* Comments and Reply comments in this proceeding are due 30 and 60 days respectively after publication in the Federal Register.
The resolution of the NPRMs discussed above will undoubtedly have major implications for the ILEC industry. We anticipate that Comments and Reply Comments in the above discussed proceedings will be extensive. We will continue to monitor these issues and will provide updates accordingly as Comments/Replies are filed by interested Parties.
