PUBLIC NOTICE
Federal Communications Commission
445 12
th
St., S.W.
Washington, D.C. 20554
News Media Information 202 / 418-0500
Internet: https://www.fcc.gov
TTY: 1-888-835-5322
DA 16-736
Released:  June 29, 2016
WIRELINE COMPETITION BUREAU ANNOUNCES IMPLEMENTATION OF THE
BUDGET CONTROL MECHANISM FOR RATE-OF-RETURN CARRIERS
WC Docket No. 10-90
By this Public Notice, the Wireline Competition Bureau (Bureau) announces the date for 
implementation of the budget control mechanism for rate-of-return carriers for 2016.  As required by the 
Rate-of-Return Reform Order,
1
the Universal Service Administrative Company (USAC) has calculated as 
of July 2016 the total support available to be distributed to rate-of-return carriers and adjustments to each 
carrier’s support to implement the Commission’s mechanism to ensure that disbursements remain within 
the $2 billion budget adopted in 2011.
2
  Going forward the target amount will be calculated for each 
mechanism each year prior to the annual filing of access tariffs, but that was not possible in this initial 
year of implementation.  As these calculations were just recently announced, for administrative 
efficiency, we direct USAC to implement the budget control mechanism in September 2016.
3
  Thus, the 
new support amounts announced by USAC will apply to support payments beginning in September 
2016.
4
For further information, please contact Suzanne Yelen, Industry Analysis & Technology 
Division, Wireline Competition Bureau at (202) 418-7400 or at TTY (202) 418-0484.
- FCC -
                                                     
1
Connect America Fund et al., WC Docket No. 10-90 et al., Report and Order, Order and Order on Reconsideration 
and Further Notice of Proposed Rulemaking, 31 FCC Rcd 3087, 3143-45, paras. 149-153 (2016) (Rate-of-Return 
Reform Order and Further Notice). 
2
See USAC, Budget Control Analysis for Rate-of-Return Carriers, http://www.usac.org/hc/program-
requirements/budget-control-rate-of-return.aspx. 
3
Rate-of-Return Reform Order and Further Notice, 31 FCC Rcd at para. 149 n.325 (directing the Bureau to work 
with NECA and USAC on the implementation details for budget control mechanism); see also id. at 3156, para. 185 
& n.413 (indicating intent to implement revisions to rules as soon as possible, while delegating authority to the 
Bureau to take all necessary administrative steps to implement the reforms adopted in the Order).  
4
This will provide sufficient time for USAC to communicate with individual carriers and implement internal 
systems to ensure appropriate amounts are disbursed going forward.  Due to this brief delay in implementation of the 
rule, disbursements in the second half of 2016 may slightly exceed the $1 billion overall target for the second half of 
the year.  Connect America Fund et al., WC Docket No. 10-90 et al., Order, DA 16-661, paras. 19-22 (WCB June 
15, 2016).