High Cost

Step 1: Safety Net Additive Support

Safety Net Additive (SNA) support is a sub-component of High Cost Loop support and is available to rural price-cap and rate-of-return incumbent carriers and competitive carriers providing service in the areas of these rural companies, which must be designated as eligible telecommunications carriers (ETCs) by their state commissions or the Federal Communications Commission (FCC).

Safety Net Additive is support "above the cap" for carriers that make significant investment in rural infrastructure in years when High Cost Loop (HCL) support is capped. If HCL support is not capped in a particular year, SNA support is not available to carriers.

SNA was established in the FCC's Rural Task Force (RTF) Order (FCC 01-157, released May 23, 2001) and is intended to provide carriers with additional incentives to invest in their networks. To receive support, a rural carrier must show that growth in telecommunications plant in service (TPIS) per line is at least 14% greater than the study area's TPIS per line in the prior year. Carriers seeking to qualify for Safety Net Additive support must provide written notice to USAC that a study area meets the 14% TPIS trigger.

SNA is covered in Subpart F of Part 36 of the FCC's rules (47 C.F.R. § 36.605.).


Last modified on 1/15/2008