The proposed revisions, if approved by the FCC, will provide interstate settlements to 282 study areas for the July 1, 2022 through June 30, 2023 period.
Assuming constant demand, these formula changes would result in a 2.8% increase in total settlements. Actual settlements, however, because of projected losses of access lines and reductions in demand, are expected to increase in total by less than 2%.
In fact, only 105 study areas are estimated to receive increased average schedule settlements.
NECA has done a very good job of developing accurate schedules and administering the process since competition and divestiture changed our industry forever. Prior to 1984/1985, AT&T and USITA jointly built the schedules, which included incentives for small companies to upgrade their services and equipment, but excluded oversight by the FCC.
The average schedule development process could at times be contentious between USITA and AT&T, but it always ended with a handshake and a couple of beers.
As I have said more than once, things were a lot more fun back then.
