FCC Approves New Methods for Calculating USF Support

Each year, the Federal Communications Commission must review and approve or modify any proposed modifications to the formulas used to calculate universal service high-cost loop support and local switching support for average schedule companies. The National Exchange Carrier Association files the annual average schedule company formula modifications for high-cost loop support and the Universal Service Administrative Company submits the proposed formula for local switching support. The Commission's rules require that these formulas "simulate the disbursements that would be received . . . by a company that is representative of average schedule companies." On August 27, 2009, NECA filed proposed modifications to the current high-cost loop support universal service formula for average schedule companies, and it requested that they take effect on January 1, 2010, and remain in effect through December 31, 2010. On September 28, 2009, USAC filed proposed modifications to the current local switching support formula for average schedule companies which, if approved, will be effective from January 1, 2010, through December 31, 2010. On October 21, 2009, the Wireline Competition Bureau issued a public notice seeking comment on NECA's and USAC's proposed formulas. On December 30, 2009, the FCC approved NECA's proposed high-cost loop support formula and USAC's proposed local switching support formula.