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NECA's Proposed 2014 Modification of Average Schedule Formulas

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Released: January 31, 2014


Federal Communications Commission

News Media Information 202 / 418-0500

445 12th St., S.W.


Washington, D.C. 20554

TTY: 1-888-835-5322

DA 14-110

Released: January 31, 2014




WC Docket No. 13-304

Comments Due: February 21, 2014
Reply Comments Due: March 7, 2014

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 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. Modifications to the average schedule formulas are based on a statistical
sampling of the costs and demand of comparable cost companies. The effects of these formula changes
on individual average schedule companies will vary depending on each company’s size and demand
characteristics. 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.3
According to NECA, most of the settlement decreases are attributed to large Non-DSL settlement
reductions experienced by all study areas.4 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.

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, FCC, WC Docket No. 13-304 (filed Dec. 23, 2013).
2 Id. at Summary-1.
3 Id. at I-6.
4 Id. at I-7.

Pursuant to sections 1.415 and 1.419 of the Commission’s rules, 47 CFR §§ 1.415, 1.419,
interested parties may file comments and reply comments on or before the dates indicated on the first
page of this document. Comments may be filed using the Commission’s Electronic Comment Filing
System (ECFS). See Electronic Filing of Documents in Rulemaking Proceedings, 63 FR 24121 (1998).

Electronic Filers: Comments may be filed electronically using the Internet by accessing the

Paper Filers: Parties who choose to file by paper must file an original and one copy 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.
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
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).
The proceeding this Notice initiates shall be treated as a “permit-but-disclose” proceeding in
accordance with the Commission’s ex parte rules.5 Persons making ex parte presentations must file a
copy of any written presentation or a memorandum summarizing any oral presentation within two
business days after the presentation (unless a different deadline applicable to the Sunshine period applies).
Persons making oral ex parte presentations are reminded that memoranda summarizing the presentation
must (1) list all persons attending or otherwise participating in the meeting at which the ex parte
presentation was made, and (2) summarize all data presented and arguments made during the
presentation. If the presentation consisted in whole or in part of the presentation of data or arguments
already reflected in the presenter’s written comments, memoranda or other filings in the proceeding, the
presenter may provide citations to such data or arguments in his or her prior comments, memoranda, or
other filings (specifying the relevant page and/or paragraph numbers where such data or arguments can be
found) in lieu of summarizing them in the memorandum. Documents shown or given to Commission

5 47 C.F.R. §§ 1.1200 et seq.

staff during ex parte meetings are deemed to be written ex parte presentations and must be filed
consistent with rule 1.1206(b). In proceedings governed by rule 1.49(f) or for which the Commission has
made available a method of electronic filing, written ex parte presentations and memoranda summarizing
oral ex parte presentations, and all attachments thereto, must be filed through the electronic comment
filing system available for that proceeding, and must be filed in their native format (e.g., .doc, .xml, .ppt,
searchable .pdf). Participants in this proceeding should familiarize themselves with the Commission’s ex
For further information regarding this proceeding, contact Don Sussman, Pricing Policy Division,
Wireline Competition Bureau, 202-418-0629, or via e-mail at
- FCC -

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