What is the Access Recovery Charge (ARC) and how was it established?
Solution/Answer:
The FCC released the USF/ICC Transformation Order which established a number of new rules requiring telecommunication carriers to adjust, over a period of years, many of their switched access charges including a new tariffed Access Recovery Charge (ARC). The ARC allows for the recovery of a limited portion of revenues lost due to the FCC mandated reductions in inter-carrier payments.