Our August 24th Blog provided an overview of the A-CAM model vs. traditional support, and how ICORE can help both cost and average schedule companies make the proper decision on using the FCC’s model, or continuing with traditional settlements.
If an average schedule company does not fare well under the model, it can choose to decline participation in A-CAM, and stay on the schedules or convert to traditional cost-based support. The FCC’s new rules – reduced rate-of-return and limitations on operating and capital expenses – will lower the average schedules going forward, and will also reduce cost separations results.
Because of these major changes in support mechanisms, it might be wise for those average schedule companies facing major revenue reductions under the model to consider a cost feasibility study. ICORE can help you assess the model, estimate reductions to future average schedules, and perform a cost feasibility study so that you can properly compare average schedule vs. cost settlements.