The FCC has approved the National Exchange Carrier Association’s modifications to the formula that will be used to calculate universal service high-cost loop support for average schedule rate-of-return carriers. The new HCLS average schedule formula – in effect from July 1, 2016 through December 31, 2016 – produces a 3.4 percent decrease in HCLS for average schedule study areas which is due to the decrease from 11.25 percent to 11 percent in the prescribed interstate rate of return.