FCC Blesses NECA’s Revisions to Average Schedule Formulas

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The FCC’s Wireline Competition Bureau has approved the National Exchange Carrier Association, Inc.’s (NECA) proposed modifications to average schedule formulas for interstate settlements.  The formulas will apply to interstate settlement disbursements in connection with the provision of interstate access services by average schedule companies for the period July 1, 2014, through June 30, 2015.  NECA’s proposed formula changes are based on a statistical sampling of costs and demand of comparable cost companies and should decrease settlement rates by about one percent, at constant demand.  According to NECA, the changes will impact individual average schedule companies differently, depending on company size, demand characteristics, and DSL pool participation.  “NECA calculates that 154 study areas are expected to experience increases and 181 study areas are expected to experience decreases in settlement rates at constant demand.”

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