Federal Communications Commission Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of Connect America Fund ETC Annual Reports and Certifications Developing a Unified Intercarrier Compensation Regime ) ) ) ) ) ) ) ) ) WC Docket No. 10-90 WC Docket No. 14-58 CC Docket No. 01-92 ERRATUM Released: May 4, 2016 By the Chief, Wireline Competition Bureau: On March 30, 2016, the Commission released a Report and Order, Order and Order on Reconsideration, and Further Notice of Proposed Rulemaking (Rate-of-Return Reform Order and FNPRM), FCC 16-33, in the above captioned proceedings. This Erratum amends the Rate-of-Return Reform Order and FNPRM as indicated below: 1. In paragraph 3, in the fourth sentence, delete “are”. 2. In footnote 39, replace “DA 16-164” with “31 FCC Rcd 1139” and replace “2015” with “2016”. 3. In paragraph 32, the last sentence is corrected to read as follows: “We do not set interim milestones for the deployment of broadband speeds of 25/3 Mbps; we require carriers receiving model-based support to offer at least 25/3 Mbps broadband service to 25 percent, 50 percent or 75 percent of the requisite locations by the end of the 10-year term, depending upon the state-level density discussed above.” 4. In paragraph 36, in the first sentence, replace “version A-CAM” with “version of A-CAM”. 5. In paragraph 37, in the third sentence, replace “the” with “an”. 6. In paragraph 114, in the first sentence, replace “Within 30 days of the effective date of this Report and Order” with “Within 30 days of the release of a Public Notice announcing that the Commission has obtained the appropriate Paperwork Reduction Act approval”. 7. In paragraph 142, the chart is corrected as follows: Competitive Ratio Reduction Ratio 0%-20% N/A 25% 3.3% 30% 6.7% 35% 10.0% 40% 13.3% 45% 16.7% Federal Communications Commission 2 50% 20.0% 55% 25.0% 60% 30.0% 65% 35.0% 70% 40.0% 75% 45.0% 80% 50.0% 85% 62.5% 90% 75% 95% 87.5% 100% 100% 8. In footnote 373, replace “within 60 days of the effective date of this Order” with “within 60 days of the release of a Public Notice announcing that the Commission has obtained the appropriate Paperwork Reduction Act approval”. 9. In paragraph 171, in the third sentence, replace “specific five-year” with “specific amount of”. 10. In paragraph 181, in the third sentence, replace “$647.42” with “$647.87”; replace “$744.53” with “$745.06”; and replace “$62.04” with “$62.09”. 11. In footnote 501, replace “36.621(a)(1)” with “54.1308(a)(1)”. This Erratum also amends APPENDIX B of the Rate-of-Return Reform Order and FNPRM as indicated below: 12. Paragraph (1) of Section 54.303(a), is corrected as follows: a. Delete “plus one standard deviation” b. Add the following directly below “follows:” “Calculate Exp(? + 1.5 * mean square error of the regression), where” c. Change “Y = ? + ?1X1 + ?2X2 + ?3X3, where” to “? = ?ˆ + ?ˆ1X1 + ?ˆ2 X2 + ?ˆ3X3,” d. Delete “Y = is the natural log of the total operating cost per housing unit” e. Add “?ˆ , ?ˆ1 , ?ˆ2 , and ?ˆ3 are the coefficients from the regression” f. Delete “? is the coefficient on the constant” g. Delete “? is the regression coefficient for each of the regressions” 13. In paragraph (2) of Section 54.303(c), replace “(b)(1)” with “(c)(1)”. 14. In paragraph (e) of Section 54.303, in the first sentence, replace “(c)” with “(d)”. 15. In paragraph (1) of Section 54.303(f), replace “equals the annualized” with “equals the lesser of 1.0 or the annualized”. 16. In paragraph (B) of Section 54.308(a)(2)(iii), delete “$10,000” and replace “§54.303” with “§54.303(f)(1)”. 17. In paragraph (d) of Section 54.311, replace “§54.308(a)(1)(i)-(iii)” with “§54.308(a)(1)(i)” and replace “§54.308(a)(1)(iv)” with “§54.308(a)(1)(ii)”. 18. In paragraph (i) of Section 54.316(c)(1), replace “February 7” with “March 8”. Federal Communications Commission 3 19. In paragraph (ii) of Section 54.316(c)(1), replace “February 8” with “March 9”. 20. In paragraph (2) of Section 54.316(c), replace “before March 1” with “before March 5”. 21. In paragraph (a) of Section 54.319, replace “High-cost loop support” with “High-cost universal service support”. 22. In paragraph (1) of Section 54.319(g), replace “85” with “83”. 23. In paragraph (2) of Section 54.319(g), replace “68” with “66”. 24. In paragraph (3) of Section 54.319(g), replace “51” with “49”. 25. In paragraph (4) of Section 54.319(g), replace “34” with “32”. 26. In paragraph (5) of Section 54.319(g), replace “17” with “15”. 27. Add the following text on page 165: “18. Revise §54.302(b) and (c) to read as follows: §54.302 Monthly per-line limit on universal service support. ***** (b) For purposes of this section, universal service support is defined as the sum of the amounts calculated pursuant to §§ 54.1304 and 54.1310, and §§ 54.305, and §§ 54.901 through 54.904. Line counts for purposes of this section shall be as of the most recent line counts reported pursuant to § 54.903(a)(1). (c) The Administrator, in order to limit support to $250 for affected carriers, shall reduce safety net additive support, high-cost loop support, safety valve support, and Connect America Fund Broadband Loop Support in proportion to the relative amounts of each support the study area would receive absent such limitation.” 28. In paragraph (c) of Section 69.132, between “category” and “by”, add “(net of the projected annual Connect America Fund Broadband Loop Support attributable to consumer broadband-only loops)”. 29. In paragraph (1) of Section 69.311(b), delete “(Category 1.3)” and “Category 1.3”. This Erratum also amends APPENDIX E of the Rate-of-Return Reform Order and FNPRM as indicated below: 30. On page 229, add the following bullet points to read as follows: “If 2015 data is not yet validated, instead use most recently validated data.” “NECA may use current data to assign converted study areas to a group and exclude their data from the weighted average growth rate calculations for the groups to which they are assigned. For this calculation, converted study areas are limited to those study areas which converted in the prior year.” Federal Communications Commission 4 31. In the formula for 2018-2021, on page 230, delete “Year – 2017” on both lines. FEDERAL COMMUNICATIONS COMMISSION Matthew S. DelNero Chief Wireline Competition Bureau