NECA Proposes Modified High-Cost Loop Formula With First Rate-of-Return Cut
The National Exchange Carrier Association proposed a modified formula to calculate USF "high-cost loop expense adjustments for average schedule companies" covering the second half of 2016. The proposal includes a reduction in the authorized rate of return for rural carriers…
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from 11.25 percent to 11 percent, said a NECA filing Friday in docket 05-337. The 25 basis points drop is the first in a six-year phasedown to 9.75 percent adopted by the FCC in its March 30 order overhauling rate-of-return USF mechanisms (see 1603300065).