FCC Approves NECA’s Average Schedule Formulas for Interstate Settlement Disbursements

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The FCC’s Wireline Competition Bureau has released an order approving “the formulas for average schedule interstate settlement disbursements in connection with the provision of interstate access services proposed by the National Carrier Exchange Association, Inc. (NECA),” pursuant to Section 69.606 of the Commission’s rules, for a one-year period beginning on July 1, 2018.  Earlier this year, NECA proposed modifications to its December 21, 2017 interstate settlement disbursement filing due to changes imposed by the 2017 Tax Cuts and Jobs Act.  NECA’s proposed formula changes would result in a 5.6 percent overall increase of settlements at constant demand.  However, NECA expects actual settlements to be lower because of projected losses of access lines and lower non-DSL demand.  According to the order, the “impact of the proposed formula changes on individual average schedule companies will vary, depending on each company’s size, demand trends and characteristics.” The formula changes adopted by the Commission will be effective for two separate one-year periods, the first from January 2, 2018 through December 31, 2018, and the second from July 1, 2018 through June 30, 2019.

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