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2014 Average Schedule Order

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Released: April 10, 2014

Federal Communications Commission

DA 14-485

Before the

Federal Communications Commission

Washington, D.C. 20554

In the Matter of

National Exchange Carrier Association, Inc.
WC Docket No. 13-304
2014 Modification of Average Schedules


Adopted: April 10, 2014

Released: April 10, 2014

By the Chief, Pricing Policy Division, Wireline Competition Bureau:
1. On December 23, 2013, the National Exchange Carrier Association, Inc. (NECA) filed with
the Commission its proposed modification of average schedule formulas for interstate settlements,
pursuant to section 69.606(b) of the Commission’s rules.1 NECA proposes to revise the formulas for
average schedule interstate settlement disbursements in connection with the provision of interstate access
services for the period beginning July 1, 2014 through June 30, 2015. Overall, NECA proposes formula
changes that would decrease settlement rates by about one percent, at constant demand.2 The proposed
settlement formulas reflect the same general structures and methods as current formulas. For the reasons
set forth below, we approve the average schedule formulas as proposed by NECA.
2. According to NECA, the effects of the proposed formula changes on individual average
schedule companies will vary depending on each company’s size and demand characteristics.3 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.4 According to NECA, most of the
settlement decreases are attributed to large non-DSL settlement reductions experienced by all study

1 47 C.F.R. § 69.606(b). See National Exchange Carrier Association, 2014 Modification of Average Schedules,
attached to Letter from Richard A. Askoff, Executive Director—Regulatory, NECA, to Marlene H. Dortch,
Secretary, Federal Communications Commission, WC Docket No. 13-304 (filed Dec. 23, 2013).
2 Id. at Summary-1.
3 Id. at I-6.
4 Id.
5 Id. at I-7. According to NECA, the decrease in this formula is mainly driven by the change in cost allocation
between DSL and Non-DSL special access categories. For study areas offering DSL in the NECA pool, the
decrease in Non-DSL settlements due to cost shifts between the two categories is mostly offset by an increase in
DSL settlements. This is not the case for study areas offering DSL outside the NECA pool.

Federal Communications Commission

DA 14-485

3. In a Public Notice released on January 31, 2014, we sought comment on NECA’s filing.6
No comments were filed.
4. We have reviewed the unopposed NECA filing and find that its proposed formulas are
reasonable. NECA revised the average schedule formulas using procedures consistent with those used in
previous filings.
5. Accordingly, IT IS ORDERED, pursuant to section 69.606(b) of the Commission’s rules, 47
C.F.R. § 69.606(b), and pursuant to the authority delegated under sections 0.91 and 0.291 of the
Commission’s rules, 47 C.F.R. §§ 0.91, 0.291, that the average schedule formulas proposed by the
National Exchange Carrier Association, Inc. on December 23, 2013, SHALL BECOME EFFECTIVE
July 1, 2014, and remain in effect through June 30, 2015.
6. IT IS FURTHER ORDERED that this order SHALL BE EFFECTIVE upon release.
Kalpak S. Gude
Chief, Pricing Policy Division
Wireline Competition Bureau

6 National Exchange Carrier Association, Inc.’s Proposed 2014 Modification of Average Schedule Formulas, WC
Docket No. 13-304, Public Notice, DA 14-110 (Pricing Pol. Div. rel. Jan. 31, 2014).

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