How does the cost-sharing formula work for Fixed Microwave Service?
The Clearinghouse uses the FCC Formula found in Rule Section 27.1164 to determine the obligation amount. Simply, the formula is: C/N x D C = Costs of the link reported to the Clearinghouse (up to the caps) N = Number of benefiting licensees to the relocation D = Depreciation (120-m/120)* *Depreciation is calculated in the following manner: First the Clearinghouse determines the number of whole months from the link agreement date to the notification date. (Examples: 12/01/08 to 12/02/09 is twelve months. 12/01/08 to 11/30/09 is eleven months.) Next, that number is subtracted from 120. (The total number of months in the 2006-2016 cost-sharing period). Then the result is divided by 120.
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