Ark. Code Ann. § 23-17-405 (2026)

1. The incumbent local exchange carrier, its successors and assigns, that owns, maintains, and provides facilities for universal service within a local exchange area on February 4, 1997, shall be the eligible telecommunications carrier within the local exchange area.
2. The Arkansas Public Service Commission, consistent with 47 U.S.C. § 214(e)(2), after reasonable notice and hearing, may designate other telecommunications providers to be eligible for federal Universal Service Fund or AHCF support under the following conditions:
   1. 1. The other telecommunications provider accepts the responsibility to provide service in response to any reasonable request from customers in an incumbent local exchange carrier's local exchange area using its own facilities or a combination of its own facilities and resale of another carrier's services.
      2. High-cost support under this section will not begin until the telecommunications provider offers to provide service in response to all reasonable requests for service from customers in its service area;
   2. The telecommunications provider may only receive funding for services provided in the eligible telecommunications carrier's study area using its own facilities or a combination of its own facilities and another carrier's facilities;
   3. The telecommunications provider will not receive AHCF funding at a level higher than the level of funding received by the incumbent local exchange carrier in the same area;
   4. The telecommunications provider advertises the availability and the charges for the services, using media of general distribution; and
   5. It is determined by the commission that the designation is in the public interest.
3. 1. In exchanges, wire centers, census blocks, or other areas where the commission has designated more than one (1) eligible telecommunications carrier, the commission shall permit a local exchange carrier to relinquish its designation as an eligible telecommunications carrier in any such area, consistent with 47 U.S.C. § 214(e)(4), upon a finding that at least one (1) eligible telecommunications carrier serves the area.
   2. In an area in which a local exchange carrier has relinquished its eligible telecommunications carrier designation, the local exchange carrier may:
      1. Continue providing services, including universal services; and
      2. 1. Discontinue providing services, including universal services.
         2. If a local exchange carrier discontinues providing basic local exchange service under subdivision (c)(2)(B)(i) of this section, the carrier shall notify affected customers in writing at least ninety (90) days before discontinuing the service.
4. 1. 1. For the entire area served by a rural telephone company, excluding tier one companies, for the purpose of the AHCF and the federal Universal Service Fund, there shall be only one (1) wireline eligible telecommunications carrier which shall be the incumbent local exchange carrier that is a rural telephone company.
      2. Multiple wireless eligible telecommunications carriers may be designated in areas served by rural telephone companies.
   2. The rural telephone company may elect to waive its right to be the only wireline eligible telecommunications carrier within the local exchange area by filing notice with the commission.
5. To provide universal services, an eligible telecommunications carrier may use:
   1. Commercial mobile services;
   2. Voice over Internet Protocol; and
   3. Any other technology that provides service that is the functional equivalent of commercial mobile services or Voice over Internet Protocol.

History. Acts 1997, No. 77, § 5; 2007, No. 385, § 5; 2009, No. 191, § 1; 2013, No. 442, § 19; 2017, No. 419, § 1.

A.C.R.C. Notes. Acts 2007, No. 385, § 1, provided:

“Legislative findings.

“The General Assembly finds that:

“(1) The development of an administratively streamlined universal service fund based upon high cost support is important public policy;

“(2) It is administratively efficient to use financial data submitted by eligible telecommunications companies to federal agencies, made under penalty of law, and when appropriate, cost proxies, for the high-cost support mechanism, to be called the ‘Arkansas High Cost Fund’, thereby eliminating the need for extensive financial review and the high administrative costs created by such reviews;

“(3) A five-year transition from the Arkansas Universal Service Fund to the Arkansas High Cost Fund is important public policy due to the shift from a revenue replacement fund based upon current changes to a high-cost fund using financial data that is two (2) or more years old;

“(4) Due to the complex nature and ever-changing administration of telecommunications at the federal level, potential changes in how access charges are collected could disrupt support for eligible telecommunications companies serving rural areas;

“(5) Eligible telecommunications company members of the AICCLP are more adversely affected by sudden changes in regulation, access charges, and statutory changes; and”

Amendments. The 2009 amendment rewrote (e).

The 2013 amendment added (c)(2).

The 2017 amendment, in (c)(1), substituted “In exchanges, wire centers, census blocks, or other areas” for “In exchanges or wire centers”, inserted “in any such area”, and substituted “serves” for “will continue to serve”; in the introductory language of (c)(2), inserted “local exchange” preceding “carrier” twice, substituted “has relinquished its” for “is not an”, and inserted “designation”; and substituted “If a local exchange carrier discontinues providing basic local exchange service” for “If a carrier discontinues providing a service” in (c)(2)(B)(ii).

Effective Dates. Acts 2017, No. 419, § 2: July 1, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that federal law requires a change in the Telecommunications Regulatory Reform Act of 2013; that the regulation of eligible telecommunications carriers under state law must be updated in order to comply with federal law; and that this act is necessary to avoid a potential conflict between state and federal law concerning regulation of eligible telecommunications carriers. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2017.”