NECA recently filed its annual revisions to the interstate average schedule formulas, to be effective July 1, 2017. The changes, when approved by the FCC, will result in an overall 0.74% increase in settlements assuming constant demand. Individual company impacts will vary, of course, depending on size, demand, and company characteristics.
The proposed Common Line, DSL Voice Data, and Broadband-Only Second Mile formulas are structurally similar to the current formulas. The Consumer Broadband Only Loop formula has been changed. The current settlement is calculated as the sum of two formulas – the DSL Basic and the Broadband-Only Loop increment – while the new CBOL is a single formula.
The revised schedules reflect Commission rule changes contained in its March 30, 2016 Rate-of-Return USF Reform Order. Included are additional limits on Operating expenses, Capital Investment Allowance, and the new support mechanism to recover broadband only loop costs.
This filing also continues to incorporate changes from the FCC’s November 18, 2011 USF/ICC Transformation Order. These include the phase down of frozen baseline switched traffic sensitive settlements and Corporate Operations Expense limits.
If you feel that these very small increases in the average schedule formulas may not be reflective of your costs, please contact ICORE about a cost feasibility study.
