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NECA files 2019 average schedule formula changes

By Shan Lin, senior manager – Average Schedule Development

On December 20, 2018, NECA filed the 2019 Modification of Average Schedules. These formulas are reviewed by the FCC and are scheduled to become effective in July 2019, subject to an FCC order expected by June 2019.*

Proposed formula changes for July 2019

The 2019 proposed formula changes would increase overall settlement rates by about 3.1 percent at constant demand. With average projected changes in demand, the overall settlement change is an increase of about 0.2 percent. The effects of the formula changes on individual companies will vary, depending on company demand trends and characteristics. 

Breaking down the changes by category, there are: 

  • increases in the common line formula and the consumer broadband-only loop formula, attributable to an increased account allocation to the common line category and a continued decline of access lines;  
  • slight increases in the special access DSL (voice-data) formula, attributable to stable account growth and a small decrease in demand; and 
  • increases in special access non-DSL formulas, attributable to decreased demand growth. 

Descriptions of the formulas, an updated settlement analysis worksheet and a forecasting tool to analyze the effect of demand changes in conjunction with the formula changes are available on our Average Schedule Resources page under Worksheets, Tools and Forms. The forecasting tool allows companies to compare the settlement effects of existing and proposed formulas and contains additional forecasting features for future years. 

Average schedule high-cost loop universal service formula approved

In addition to the settlement formula filing each December, we file modifications to the average schedule universal service formula every August. On December 18, 2018, the FCC approved the universal service high-cost loop support formula modifications we filed on August 27, 2018. The new formulas became effective on January 1, 2019, and will remain in effect through December 31, 2019. We notified members of this new formula and its effects last August. For further analysis, worksheets containing the new universal service formulas can be found on our Average Schedule Resources page under Worksheets, Tools and Forms.

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*As required by the FCC's Part 69 rules, NECA develops average schedule formulas designed to simulate the disbursements received by cost companies with characteristics similar to the average schedule population. Each December we file modifications of average schedules. Assuming FCC approval, formula modifications become effective on July 1 and reflect changes in company cost characteristics, demand, FCC rules, network technology and related operations.

Filed under January 2019, Tagged with Average schedules

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