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NECA's Proposed 2013 Modification of Average Schedule Formulas

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Released: February 5, 2013


Federal Communications Commission

News Media Information 202 / 418-0500

445 12th St., S.W.


Washington, D.C. 20554

TTY: 1-888-835-5322

DA 13-155

February 5, 2013




WC Docket No. 12-369

Comments Due: February 25, 2013
Reply Comments Due: March 7, 2013

On December 21, 2012, 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 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, 2013, through June 30, 2014.
Modifications to the average schedule formulas are based on a statistical sampling of the costs
and demand of comparable cost companies. NECA indicates that the major factors driving this current
proposed modification include, “slow growth in costs of traditional expenditures, coupled with new
investment and expenses for deployment of broadband services.”2 In addition, NECA states that
“[d]eclining demand contributes to increases in average cost per unit amounts reflected in settlement
rates.”3 Overall, NECA estimates that the proposed formula changes would increase settlement rates by
approximately 3.36 percent, given constant demand.4 The effects of these formula changes on individual
average schedule companies will vary depending on each company’s size and demand characteristics.
Overall, NECA calculates that 337 study areas are expected to experience increases in settlement rates,
while 22 study areas, whose 2012 switched traffic sensitive transitional settlement is a high fraction of
their total settlements, will experience settlement rate reductions.5 NECA further explains that for the 22

1 47 C.F.R. § 69.606(b). See National Exchange Carrier Association, 2013 Modification of Average Schedules,
attached to Letter from Richard A. Askoff, Executive Director—Regulatory, NECA, to Marlene H. Dortch,
Secretary, FCC, WC Docket No. 12-369 (filed Dec. 21, 2012).
2 Id. at Summary-1.
3 Id.
4 Id. at I-6.
5 Id. at I-6 to I-7.

study areas, “the 2013 five percent transitional reduction step of the frozen baseline amount will more
than offset possible increases in other formulas.”6
Interested parties may file comments on NECA’s proposed modifications on or before


25, 2013 and reply comments on or before

March 7, 2013

. Filings in this proceeding should be
captioned “National Exchange Carrier Association, Inc.’s Proposed 2012 Modification of Average
Schedule Formulas” and filed in

WC Docket No. 12-369

All filings must be addressed to the Commission’s Secretary, Marlene H. Dortch, Office of the
Secretary, Federal Communications Commission, 445 12th Street, SW, Suite TW-A325, Washington, DC
20554. Two courtesy copies must be delivered to Douglas Slotten, Federal Communications
Commission, Wireline Competition Bureau, Pricing Policy Division, 445 12th Street, SW, Room 5-A233,
Washington, DC 20554 or via e-mail at One copy must also be sent to Best
Copy and Printing, Inc., Portals II, 445 12th Street SW, Suite CY-B402, Washington, DC 20554,
telephone 202-488-5300, facsimile 202-488-5563, or via e-mail at
Comments may be filed using the Commission’s Electronic Comment Filing System (ECFS) or
by filing paper copies.
Electronic Filers: Comments may be filed electronically using the Internet by accessing the
ECFS: Filers should follow the instructions provided on the
website for submitting comments.
For ECFS filers, if multiple docket or rulemaking numbers appear in the caption of this
proceeding, filers must transmit one electronic copy of the comments for each docket or
rulemaking number referenced in the caption. In completing the transmittal screen, filers
should include their full name, U.S. Postal Service mailing address, and the applicable
docket or rulemaking number. Parties may also submit an electronic comment by
Internet e-mail. To get filing instructions, filers should send an e-mail to
and include the following words in the body of the message: get form <your email
address>. A sample form and directions will be sent in response.
Paper Filers: Parties who choose to file by paper must file an original and four copies of each
filing. If more than one docket or rulemaking number appears in the caption of this proceeding,
filers must submit two additional copies for each additional docket or rulemaking number.

Parties are strongly encouraged to file comments electronically using the Commission’s

Filings can be sent by hand or messenger delivery, by commercial overnight courier, or by first-
class or overnight U.S. Postal Service mail (although we continue to experience delays in
receiving U.S. Postal Service mail). All filings must be addressed to the Commission’s Secretary,
Marlene H. Dortch, Office of the Secretary, Federal Communications Commission.
All hand-delivered or messenger-delivered paper filings for the Commission’s Secretary must be
delivered to FCC Headquarters at 445 12th St., SW, Room TW-A325, Washington, DC 20554.
All hand deliveries must be held together with rubber bands or fasteners. Any envelopes must be

6 Id. at I-7.

disposed of before entering the building. The filing hours at both locations are 8:00 a.m. to 7:00
Commercial overnight mail (other than U.S. Postal Service Express Mail and Priority Mail) must
be sent to 9300 East Hampton Drive, Capitol Heights, MD 20743.
U.S. Postal Service first-class, Express, and Priority mail must be addressed to 445 12th Street,
SW, Washington DC 20554.
People with Disabilities: To request materials in accessible formats for people with disabilities
(braille, large print, electronic files, audio format), send an e-mail to or call the
Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202-418-0432 (tty).
Filings and comments are also available for public inspection and copying during regular
business hours at the FCC Reference Information Center, Portals II, 445 12th Street, SW, Room CY-
A257, Washington, DC 20554. They may also be purchased from the Commission’s duplicating
contractor, Best Copy and Printing, Inc., Portals II, 445 12th Street, SW, Room CY-B402, Washington,
DC, 20554, telephone 202-488-5300, facsimile 202-488-5563, or via e-mail at
This matter shall be treated as a “permit-but-disclose” proceeding in accordance with the
Commission’s ex parte rules.7 Persons making oral ex parte presentations are reminded that memoranda
summarizing the presentations must contain summaries of the substance of the presentations and not
merely a listing of the subjects discussed. More than a one- or two-sentence description of the views and
arguments presented generally is required.8 Other rules pertaining to oral and written ex parte
presentations in permit-but-disclose proceedings are set forth in section 1.1206(b) of the Commission’s
For further information regarding this proceeding, contact Douglas Slotten, Pricing Policy
Division, Wireline Competition Bureau, 202-418-1572, or via e-mail at
- FCC -

7 See 47 C.F.R. §§ 1.1200, 1.1206.
8 See 47 C.F.R. § 1.1206(b).
9 47 C.F.R. § 1.1206(b).

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