PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

The Commission is considering whether to revise: (a) intercarrier rates for intrastate telephone switched access services in New York; and (b) the Targeted Accessibility Fund, supporting E911, low-income discounts, and hearing impaired telecom service.

Availability of important telecommunications services in New York State at just and reasonable rates.

Helping to ensure availability of important telecommunications services in New York State at affordable rates.

By notice dated August 3, 2009, the Commission established a proceeding to examine issues related to the advisability of modifications to: (a) existing funding regimes supporting universally available telecommunications services in New York; (b) intercarrier compensation rates for intrastate switched access services; and (c) the Targeted Accessibility Fund (TAF) that supports E911 service, low income residential telephone rates, and telecommunications service for the hearing impaired. In earlier phases of the proceeding the Commission provided initially for temporarily continued universal service support and then later established a four-year State Universal Service Fund (SUSF) to support continued telephone service in high-cost rural areas of the State. Separately, in May 2012 in Case 12-C-0112, the Commission required telecommunications carriers to revise terminating intrastate access rates in conformance with a November 2011 order of the Federal Communications Commission (FCC). In the current Phase III of this proceeding, remaining intrastate switched access rates -- which are also the subject of impending action by the FCC -- are under Commission review, as is the TAF. On November 19, 2012, a substantial majority of parties to this proceeding submitted a joint proposal intended to resolve the issues in Phase III. The Phase III Joint Proposal calls for the Commission to await additional FCC action on originating access rates anticipated by July 2014 before taking any further action on intrastate switched access rates in New York. In addition, the Phase III Joint Proposal calls for no changes in the TAF, with further consideration of TAF issues deferred until the Commission reconsiders the SUSF, beginning in January 2016, or once the FCC issues a further order on switched access rates. The Commission may approve, reject, or modify the Phase III Joint Proposal, or other proposals that might be made in Phase III, in whole or in part, or adopt alternative measures concerning intrastate switched access rates or the TAF.

Deborah Swatling, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 486-2659, email: [email protected]

Jaclyn A. Brilling, Secretary, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 474-6530, email: [email protected]

45 days after publication of this notice.