NECA Files Proposed USF High-Cost Loop Formula Modifications for 2017
The National Exchange Carrier Association proposed modifications to its USF formula for calculating high-cost loop support for "average schedule" rate-of-return companies in 2017. The proposal incorporates changes from the FCC's March 31 rural broadband USF overhaul order, including a continued…
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annual reduction of 25 basis points in the authorized rate-of-return and new restrictions on operating expenses, said a NECA filing Thursday in docket 05-337. The previous 11.25 percent rate of return dropped to 11 percent July 1 and will drop to 10.75 percent July 1, 2017, under the proposed formula, on its way to 9.75 percent in 2021.