FCC Bureau OKs NECA's Proposed USF Loop Formula Cutting Rate of Return
The FCC approved a National Exchange Carrier Association proposal to change the formula used to calculate USF high-cost loop support for "average schedule" rate-of-return telcos (see 1605160023). The new formula, which covers support from July 1 to Dec. 31, incorporates…
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a reduction in the authorized rate of return from 11.25 percent to 11 percent, said a Wireline Bureau order in docket 05-337 listed in Monday's Daily Digest. That's the first 0.25 percentage point cut required by the FCC in its March rate-of-return USF broadband overhaul order driving the authorized rate of return down to 9.75 percent over six years (see 1603300065).