Average Schedule Filing: Good News and Bad News

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NECA recently filed its annual average schedule modifications which, if approved by the FCC, will be effective for the 12 months beginning July 1, 2018.

The good news is that NECA projects settlement rate increases of 5.6% for some two thirds of the current 284 average schedule companies. The bad news is that roughly one third – 90+ companies — will experience settlement rate decreases.

The somewhat worse news is that many of the 190 or so companies getting increases in their common line and Non-DSL rates will receive actual settlement dollars below the level of that rate increase, due to losses of access lines and reductions in Non-DSL demand.

Average schedule companies getting settlement rate increases with constant demand, then, will be getting a favorable bump in settlement revenue. Those with both settlement rate decreases and falling demand, conversely, could experience significant revenue losses.

If you need assistance with the proposed formulas, or will be adversely affected by their July 1 implementation, please give us a call.