How does the cost-sharing formula work?
In pro-rata situations, the Clearinghouse uses the FCC Formula to determine the obligation amount. Simply it 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: 12/01/98 to 12/02/99 is twelve months. 12/01/98 to 11/30/99 is eleven months) Next that number is subtracted from 120. (The total number of months in the 1995-2005 cost-sharing period). Then the result is divided by 120.
