NECA Proposes High-Cost Loop Support Increase for Average Schedule RLECs
Some small rural telcos will receive an additional $3.3 million in USF high-cost loop support under formula modifications proposed by the National Exchange Carrier Association for "average schedule companies." The proposed extra money payable for 194 average schedule study (coverage)…
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areas would mean the affected rural LECs would receive about $11.3 million in 2016, vs. $8 million in 2015 for 165 study areas under the current formula, a 41 percent increase, NECA said in a report posted Friday in FCC docket 05-337. Most of the proposed increase is due to an FCC rule change in December aimed at keeping total payments under a cap through across-the-board cuts rather than other loop cost adjustments. "The new method of controlling the fund has a smaller impact on lower cost companies than the old method," NECA said. "Under the old rules, the proposed formula would have increased payments to average schedule companies by approximately 2%." If the FCC approves the proposed changes, the average schedule payments still will be only 1.6 percent of the $718 million in total high-cost loop support for RLECs in 2016, NECA said.