There are a myriad of complex federal and state rules affecting the structure of regulated telecom carriers with respect to the provision of non-regulated services by separate divisions or affiliates. Further, the Telecom Act prohibits the subsidizing of competitive offerings with non-competitive (regulated) services. JSI can assist clients with both corporate structure and pricing decisions that comply with FCC and state PUC rules.

Areas related to affiliate transactions for which JSI can provide assistance include:

• Assessment of the impact of FCC and state affiliate transaction rules on current and prospective LEC operations;
• Evaluation of optimal or required structure for non-regulated activities;
• Drafting of affiliate contracts;
• Development of affiliate transaction pricing for both asset transfers and ongoing services;
• Development of affiliate and non-regulated transaction guidelines;
• Development of cost structures and cost allocation manuals; and
• Expert testimony.

If you have any questions or would like additional information on affiliate relationships, please contact John Kuykendall (jkuykendall@jsitel.com) or Terri Parrilla (tparrilla@jsitel.com) in JSI’s Maryland office, at 301-459-7590, or Craig Cook (ccook@jsitel.com) in JSI’s Texas office, at 512-338-0473.