CODE OF FEDERAL REGULATIONS 47Parts 40 to 69 Revised as of October 1, 2000 Telecommunication Containing a Codification of documents of general applicability and future effect As of October 1, 2000 With Ancillaries

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 Table of Contents Page Explanation v Title 47: Chapter I—Federal Communications Commission (Continued) 3 Finding Aids: Material Approved for Incorporation by Reference 503 Table of CFR Titles and Chapters 505 Alphabetical List of Agencies Appearing in the CFR 523 Table of OMB Control Numbers 533 List of CFR Sections Affected 543

Cite this Code:CFR

To cite the regulations in this volume use title, part and section number. Thus, 47 CFR 42.01 refers to title 47, part 42, section 01. Explanation

The Code of Federal Regulations is a codification of the general and permanent rules published in the Federal Register by the Executive departments and agencies of the Federal Government. The Code is divided into 50 titles which represent broad areas subject to Federal regulation. Each title is divided into chapters which usually bear the name of the issuing agency. Each chapter is further subdivided into parts covering specific regulatory areas.

Each volume of the Code is revised at least once each calendar year and issued on a quarterly basis approximately as follows:

Title 1 through Title 16

as of January 1

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as of April 1

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as of July 1

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as of October 1

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To determine whether a Code volume has been amended since its revision date (in this case, October 1, 2000), consult the “List of CFR Sections Affected (LSA),” which is issued monthly, and the “Cumulative List of Parts Affected,” which appears in the Reader Aids section of the daily Federal Register. These two lists will identify the Federal Register page number of the latest amendment of any given rule.

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Each volume of the Code contains amendments published in the Federal Register since the last revision of that volume of the Code. Source citations for the regulations are referred to by volume number and page number of the Federal Register and date of publication. Publication dates and effective dates are usually not the same and care must be exercised by the user in determining the actual effective date. In instances where the effective date is beyond the cut-off date for the Code a note has been inserted to reflect the future effective date. In those instances where a regulation published in the Federal Register states a date certain for expiration, an appropriate note will be inserted following the text.

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 OBSOLETE PROVISIONS

Provisions that become obsolete before the revision date stated on the cover of each volume are not carried. Code users may find the text of provisions in effect on a given date in the past by using the appropriate numerical list of sections affected. For the period before January 1, 1986, consult either the List of CFR Sections Affected, 1949-1963, 1964-1972, or 1973-1985, published in seven separate volumes. For the period beginning January 1, 1986, a “List of CFR Sections Affected” is published at the end of each CFR volume.

 INCORPORATION BY REFERENCE

What is incorporation by reference? Incorporation by reference was established by statute and allows Federal agencies to meet the requirement to publish regulations in the Federal Register by referring to materials already published elsewhere. For an incorporation to be valid, the Director of the Federal Register must approve it. The legal effect of incorporation by reference is that the material is treated as if it were published in full in the Federal Register (5 U.S.C. 552(a)). This material, like any other properly issued regulation, has the force of law.

What is a proper incorporation by reference? The Director of the Federal Register will approve an incorporation by reference only when the requirements of 1 CFR part 51 are met. Some of the elements on which approval is based are:

(a) The incorporation will substantially reduce the volume of material published in the Federal Register.

(b) The matter incorporated is in fact available to the extent necessary to afford fairness and uniformity in the administrative process.

(c) The incorporating document is drafted and submitted for publication in accordance with 1 CFR part 51.

Properly approved incorporations by reference in this volume are listed in the Finding Aids at the end of this volume.

What if the material incorporated by reference cannot be found? If you have any problem locating or obtaining a copy of material listed in the Finding Aids of this volume as an approved incorporation by reference, please contact the agency that issued the regulation containing that incorporation. If, after contacting the agency, you find the material is not available, please notify the Director of the Federal Register, National Archives and Records Administration, Washington DC 20408, or call (202) 523-4534.

 CFR INDEXES AND TABULAR GUIDES

A subject index to the Code of Federal Regulations is contained in a separate volume, revised annually as of January 1, entitled CFR Index and Finding Aids. This volume contains the Parallel Table of Statutory Authorities and Agency Rules (Table I). A list of CFR titles, chapters, and parts and an alphabetical list of agencies publishing in the CFR are also included in this volume.

An index to the text of “Title 3—The President” is carried within that volume.

The Federal Register Index is issued monthly in cumulative form. This index is based on a consolidation of the “Contents” entries in the daily Federal Register.

A List of CFR Sections Affected (LSA) is published monthly, keyed to the revision dates of the 50 CFR titles.

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There are no restrictions on the republication of material appearing in the Code of Federal Regulations.

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For a legal interpretation or explanation of any regulation in this volume, contact the issuing agency. The issuing agency's name appears at the top of odd-numbered pages.

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The Office of the Federal Register also offers a free service on the National Archives and Records Administration's (NARA) World Wide Web site for public law numbers, Federal Register finding aids, and related information. Connect to NARA's web site at www.nara.gov/fedreg. The NARA site also contains links to GPO Access.

 Raymond A. Mosley, Director, Office of the Federal Register. October 1, 2000. THIS TITLE

Title 47—Telecommunication is composed of five volumes. The parts in these volumes are arranged in the following order: Parts 0-19, parts 20-39, parts 40-69, parts 70-79, and part 80 to End, chapter I—Federal Communications Commission. The last volume, part 80 to End, also includes chapter II—Office of Science and Technology Policy and National Security Council, and chapter III—National Telecommunications and Information Administration, Department of Commerce. The contents of these volumes represent all current regulations codified under this title of the CFR as of October 1, 2000.

Part 73 contains a numerical designation of FM broadcast channels (§ 73.201) and a table of FM allotments designated for use in communities in the United States, its territories, and possessions (§ 73.202). Part 73 also contains a numerical designation of television channels (§ 73.603) and a table of allotments which contain channels designated for the listed communities in the United States, its territories, and possessions (§ 73.606).

The OMB control numbers for the Federal Communications Commission, appear in § 0.408 of chapter I. For the convenience of the user § 0.408 is reprinted in the Finding Aids section of the second through fifth volumes.

A redesignation table appears in the Finding Aids section of the volume containing part 80 to End.

For this volume, Linda L. Jones was Chief Editor. The Code of Federal Regulations publication program is under the direction of Frances D. McDonald, assisted by Alomha S. Morris.

CFRORDR.FRM2 <CFRTITLE> <LRH>47 CFR Ch. I (10-1-00 Edition)</LRH> <RRH>Federal Communications Commission</RRH> <TITLEHD> <PRTPAGE P="1"/> <HD SOURCE="HED">Title 47—</HD> <HD SOURCE="HED">Telecommunication</HD> <P>(This book contains parts 40 to 69)</P> </TITLEHD> <CFRTOC> <PTHD>Part</PTHD> <CHAPTI> <SUBJECT> <E T="04">chapter i</E>—Federal Communications Commission (Continued)</SUBJECT> <PG>42</PG> </CHAPTI> </CFRTOC> </CFRTITLE> <CHAPTER> <TOC> <TOCHD> <PRTPAGE P="3"/> <HD SOURCE="HED">CHAPTER I—FEDERAL COMMUNICATIONSCOMMISSION—(CONTINUED) </HD> </TOCHD> <SUBCHPHD>SUBCHAPTER B—COMMON CARRIER SERVICES—(CONTINUED)</SUBCHPHD> <PTHD>Part</PTHD> <PGHD>Page</PGHD> <CHAPTI> <PT>42</PT> <SUBJECT>Preservation of records of communication common carriers</SUBJECT> <PG>5</PG> <PT>43</PT> <SUBJECT>Reports of communication common carriers and certain affiliates</SUBJECT> <PG>7</PG> <PT>51</PT> <SUBJECT>Interconnection</SUBJECT> <PG>16</PG> <PT>52</PT> <SUBJECT>Numbering</SUBJECT> <PG>62</PG> <PT>53</PT> <SUBJECT>Special provisions concerning Bell operating companies</SUBJECT> <PG>86</PG> <PT>54</PT> <SUBJECT>Universal service</SUBJECT> <PG>91</PG> <PT>59</PT> <SUBJECT>Infrastructure sharing</SUBJECT> <PG>145</PG> <PT>61</PT> <SUBJECT>Tariffs</SUBJECT> <PG>146</PG> <PT>63</PT> <SUBJECT>Extension of lines, new lines, and discontinuance, reduction, outage and impairment of service by common carriers; and grants of recognized private operating agency status</SUBJECT> <PG>187</PG> <PT>64</PT> <SUBJECT>Miscellaneous rules relating to common carriers</SUBJECT> <PG>218</PG> <PT>65</PT> <SUBJECT>Interstate rate of return prescription procedures and methodologies</SUBJECT> <PG>293</PG> <PT>68</PT> <SUBJECT>Connection of terminal equipment to the telephone network</SUBJECT> <PG>302</PG> <PT>69</PT> <SUBJECT>Access charges</SUBJECT> <PG>455</PG> </CHAPTI> <CROSSREF> <HD SOURCE="HED">Cross Reference:</HD> <P/> <P>Excise taxes on communications services and facilities: Internal Revenue, 26 CFR Part 49.</P> </CROSSREF> <SUPPLPUB> <HD SOURCE="HED">Supplemental Publications:</HD> <P/> <P>Annual Reports of the Federal Communications Commission to Congress.</P> <P>Federal Communications Commission Reports of Orders and Decisions.</P> <P>Communications Act of 1934 (with amendments and index thereto), Recap. Version, May 1989.</P> <P>Study Guide and Reference Material for Commercial Radio Operator Examinations, May 1979 edition.</P> </SUPPLPUB> </TOC> <LRH>47 CFR Ch. I (10-1-00 Edition)</LRH> <RRH>Federal Communications Commission</RRH> <SUBCHAP TYPE="N"> <PRTPAGE P="5"/> <HD SOURCE="HED">SUBCHAPTER B—COMMON CARRIER SERVICES(CONTINUED)</HD> <PART> <EAR>Pt. 42</EAR> <HD SOURCE="HED">PART 42—PRESERVATION OF RECORDS OF COMMUNICATION COMMON CARRIERS</HD> <CONTENTS> <SUBJGRP> <HD SOURCE="HED">Applicability</HD> <SECHD>Sec.</SECHD> <SECTNO>42.01</SECTNO> <SUBJECT>Applicability.</SUBJECT> </SUBJGRP> <SUBJGRP> <HD SOURCE="HED">General Instructions</HD> <SECTNO>42.1</SECTNO> <SUBJECT>Scope of the regulations in this part.</SUBJECT> <SECTNO>42.2</SECTNO> <SUBJECT>Designation of a supervisory official.</SUBJECT> <SECTNO>42.3</SECTNO> <SUBJECT>Protection and storage of records.</SUBJECT> <SECTNO>42.4</SECTNO> <SUBJECT>Index of records.</SUBJECT> <SECTNO>42.5</SECTNO> <SUBJECT>Preparation and preservation of reproductions of original records.</SUBJECT> <SECTNO>42.6</SECTNO> <SUBJECT>Retention of telephone toll records.</SUBJECT> <SECTNO>42.7</SECTNO> <SUBJECT>Retention of other records.</SUBJECT> </SUBJGRP> <SUBJGRP> <HD SOURCE="HED">Specific Instructions for Carriers Offering Interexchange Services</HD> <SECTNO>42.10</SECTNO> <SUBJECT>Public availability of information concerning interexchange services.</SUBJECT> <SECTNO>42.11</SECTNO> <SUBJECT>Retention of information concerning detariffed interexchange services.</SUBJECT> </SUBJGRP> </CONTENTS> <AUTH> <HD SOURCE="HED">Authority:</HD> <P>Sec. 4(i), 48 Stat. 1066, as amended, 47 U.S.C. 154(i). Interprets or applies secs. 219 and 220, 48 Stat. 1077-78, 47 U.S.C. 219, 220.</P> </AUTH> <SOURCE> <HD SOURCE="HED">Source:</HD> <P>51 FR 32653, Sept. 15, 1986, unless otherwise noted.</P> </SOURCE> <SUBJGRP> <HD SOURCE="HED">Applicability</HD> <SECTION> <SECTNO>§ 42.01</SECTNO> <SUBJECT>Applicability.</SUBJECT> <P>This part prescribes the regulations governing the preservation of records of communication common carriers that are fully subject to the jurisdiction of the Commission.</P> </SECTION> </SUBJGRP> <SUBJGRP> <HD SOURCE="HED">General Instructions</HD> <SECTION> <SECTNO>§ 42.1</SECTNO> <SUBJECT>Scope of the regulations in this part.</SUBJECT> <P>(a) The regulations in this part apply to all accounts, records, memoranda, documents, papers, and correspondence prepared by or on behalf of the carrier as well as those which come into its possession in connection with the acquisition of property, such as by purchase, consolidation, merger, etc.</P> <P>(b) The regulations in this part shall not be construed as requiring the preparation of accounts, records, or memoranda not required to be prepared by other regulations, such as the Uniform System of Accounts, except as provided hereinafter.</P> <P>(c) The regulations in this part shall not be construed as excusing compliance with any other lawful requirement for the preservation of records.</P> </SECTION> <SECTION> <SECTNO>§ 42.2</SECTNO> <SUBJECT>Designation of a supervisory official.</SUBJECT> <P>Each carrier subject to the regulations in this part shall designate one or more officials to supervise the preservation of its records.</P> </SECTION> <SECTION> <SECTNO>§ 42.3</SECTNO> <SUBJECT>Protection and storage of records.</SUBJECT> <P>The carrier shall protect records subject to the regulations in this part from damage from fires, and other hazards and, in the selection of storage spaces, safeguard the records from unnecessary exposure to deterioration.</P> </SECTION> <SECTION> <SECTNO>§ 42.4</SECTNO> <SUBJECT>Index of records.</SUBJECT> <P>Each carrier shall maintain at its operating company headquarters a master index of records. The master index shall identify the records retained, the related retention period, and the locations where the records are maintained. The master index shall be subject to review by Commission staff and the Commission shall reserve the right to add records, or lengthen retention periods upon finding that retention periods may be insufficient for its regulatory purposes. When any records are lost or destroyed before expiration of the retention period set forth in the master index, a certified statement shall be added to the master index, as soon as practicable, listing, as far as may be determined, the records lost or destroyed and describing the circumstances of the premature loss or destruction. At each office of the carrier where records are kept or stored, the carrier shall arrange, file, and currently index the records on site so that they may be readily identified and made available to representatives of the Commission.</P> </SECTION> <SECTION> <PRTPAGE P="6"/> <SECTNO>§ 42.5</SECTNO> <SUBJECT>Preparation and preservation of reproductions of original records.</SUBJECT> <P>(a) Each carrier may use a retention medium of its choice to preserve records in lieu of original records, provided that they observe the requirements of paragraphs (b) and (c) of this section.</P> <P>(b) A paper or microfilm record need not be created to satisfy the requirements of this part if the record is initially prepared in machine-readable medium such as punched cards, magnetic tapes, and disks. Each record kept in a machine-readable medium shall be accompanied by a statement clearly indicating the type of data included in the record and certifying that the information contained in it has been accurately duplicated. This statement shall be executed by a person duplicating the records. The records shall be indexed and retained in such a manner that they are easily accessible, and the carrier shall have the facilities available to locate, identify and reproduce the records in readable form without loss of clarity.</P> <P>(c) Records may be retained on microfilm provided they meet the requirements of the Federal Business Records Act (28 U.S.C. 1732).</P> </SECTION> <SECTION> <SECTNO>§ 42.6</SECTNO> <SUBJECT>Retention of telephone toll records.</SUBJECT> <P>Each carrier that offers or bills toll telephone service shall retain for a period of 18 months such records as are necessary to provide the following billing information about telephone toll calls: the name, address, and telephone number of the caller, telephone number called, date, time and length of the call. Each carrier shall retain this information for toll calls that it bills whether it is billing its own toll service customers for toll calls or billing customers for another carrier.</P> <CITA>[51 FR 39536, Oct. 29, 1986]</CITA> </SECTION> <SECTION> <SECTNO>§ 42.7</SECTNO> <SUBJECT>Retention of other records.</SUBJECT> <P>Except as specified in § 42.6, each carrier shall retain records identified in its master index of records for the period established therein. Records relevant to complaint proceedings not already contained in the index of records should be added to the index as soon as a complaint is filed and retained until final disposition of the complaint. Records a carrier is directed to retain as the result of a proceeding or inquiry by the Commission to the extent not already contained in the index will also be added to the index and retained until final disposition of the proceeding or inquiry.</P> </SECTION> </SUBJGRP> <SUBJGRP> <HD SOURCE="HED">Specific Instructions for Carriers Offering Interexchange Services</HD> <SECTION> <SECTNO>§ 42.10</SECTNO> <SUBJECT>Public availability of information concerning interexchange services.</SUBJECT> <P>(a) A nondominant interexchange carrier (IXC) shall make available to any member of the public, in at least one location, during regular business hours, information concerning its current rates, terms and conditions for all of its interstate, domestic, interexchange services. Such information shall be made available in an easy to understand format and in a timely manner. Following an inquiry or complaint from the public concerning rates, terms and conditions for such services, a carrier shall specify that such information is available and the manner in which the public may obtain the information.</P> <P>(b) In addition, a nondominant IXC that maintains an Internet website shall make such rate and service information specified in paragraph (a) of this section available on-line at its Internet website in a timely and easily accessible manner, and shall update this information regularly.</P> <CITA>[64 FR 19725, Apr. 22, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 42.11</SECTNO> <SUBJECT>Retention of information concerning detariffed interexchange services.</SUBJECT> <P>(a) A nondominant IXC shall maintain, for submission to the Commission and to state regulatory commissions upon request, price and service information regarding all of the carrier's interstate, domestic, interexchange service offerings. The price and service information maintained for purposes of this paragraph shall include documents supporting the rates, terms, and conditions of the carrier's interstate, domestic, interexchange offerings. The information maintained pursuant to this <PRTPAGE P="7"/>section shall be maintained in a manner that allows the carrier to produce such records within ten business days.</P> <P>(b) The price and service information maintained pursuant to this section shall be retained for a period of at least two years and six months following the date the carrier ceases to provide services pursuant to such rates, terms and conditions.</P> <CITA>[61 FR 59366, Nov. 22, 1996, as amended at 62 FR 59604, Nov. 4, 1997; 64 FR 19725, Apr. 22, 1999]</CITA> </SECTION> </SUBJGRP> </PART> <PART> <EAR>Pt. 43</EAR> <HD SOURCE="HED">PART 43—REPORTS OF COMMUNICATION COMMON CARRIERS AND CERTAIN AFFILIATES</HD> <CONTENTS> <SECHD>Sec.</SECHD> <SECTNO>43.01</SECTNO> <SUBJECT>Applicability.</SUBJECT> <SECTNO>43.11</SECTNO> <SUBJECT>Reports of local exchange competition data.</SUBJECT> <SECTNO>43.21</SECTNO> <SUBJECT>Annual reports of carriers and certain affiliates.</SUBJECT> <SECTNO>43.41</SECTNO> <SUBJECT>[Reserved]</SUBJECT> <SECTNO>43.43</SECTNO> <SUBJECT>Reports of proposed changes in depreciation rates.</SUBJECT> <SECTNO>43.51</SECTNO> <SUBJECT>Contracts and concessions.</SUBJECT> <SECTNO>43.53</SECTNO> <SUBJECT>Reports regarding division of international toll communication charges.</SUBJECT> <SECTNO>43.61</SECTNO> <SUBJECT>Reports of international telecommunications traffic.</SUBJECT> <SECTNO>43.72</SECTNO> <SUBJECT>[Reserved]</SUBJECT> <SECTNO>43.81</SECTNO> <SUBJECT>Reports of carriers owned by foreign telecommunications entities.</SUBJECT> <SECTNO>43.82</SECTNO> <SUBJECT>International circuit status reports.</SUBJECT> </CONTENTS> <AUTH> <HD SOURCE="HED">Authority:</HD> <P>47 U.S.C. 154; Telecommunications Act of 1996, Pub. L. 104-104, secs. 402 (b)(2)(B), (c), 110 Stat. 56 (1996) as amended unless otherwise noted. 47 U.S.C. 211, 219, 220 as amended.</P> </AUTH> <SOURCE> <HD SOURCE="HED">Source:</HD> <P>28 FR 13214, Dec. 5, 1963, unless otherwise noted.</P> </SOURCE> <SECTION> <SECTNO>§ 43.01</SECTNO> <SUBJECT>Applicability.</SUBJECT> <P>(a) The sections in this part include requirements which have been promulgated under authority of sections 211 and 219 of the Communications Act of 1934, as amended, with respect to the filing by communication common carriers and certain of their affiliates of periodic reports and certain other data, but do not include certain requirements relating to the filing of information with respect to specific services, accounting systems and other matters incorporated in other parts of this chapter.</P> <P>(b) Except as provided in paragraphs (c) and (d) of this section, carriers becoming subject to the provisions of the several sections of this part for the first time, shall, within thirty (30) days of becoming subject, file the required data as set forth in the various sections of this part.</P> <P>(c) Carriers becoming subject to the provisions of §§ 43.21 and 43.43 for the first time, because their annual operating revenues equal or exceed the indexed revenue threshold for a given year, shall begin collecting data pursuant to such provisions in the calendar year following the publication of that indexed revenue threshold in the <E T="04">Federal Register</E>. With respect to such initial filing of reports by any carrier, pursuant to the provisions of § 43.21 (d), (e), (f), (g), (h), (i), (j), and (k), the carrier is to begin filing data for the calendar year following the publication of that indexed revenue threshold in the <E T="04">Federal Register</E> by April 1 of the second calendar year following publication of that indexed revenue threshold in the <E T="04">Federal Register</E>.</P> <P>(d) Common carriers subject to the provisions of § 43.11 shall file data semi-annually. Reports shall be filed each year on or before March 1st (reporting data about their deployment of local exchange services as of December 31 of the prior year) and September 1st (reporting data about their deployment of local exchange services as of June 31 of the current year). Common carriers becoming subject to the provisions of § 43.11 for the first time within a calendar year shall file data for the reporting period in which they become eligible and semi-annually thereafter. Common carriers subject to the provisions of § 43.11 shall make an initial filing of the FCC Form 477 on May 15, 2000 (reporting data about their deployment of local exchange services as of December 31, 1999).</P> <CITA>[28 FR 13214, Dec. 5, 1963, as amended at 62 FR 39778, July 24, 1997; 65 FR 19685, Apr. 12, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 43.11</SECTNO> <SUBJECT>Reports of local exchange competition data</SUBJECT> <P>(a) All common carriers and their affiliates (as defined in 47 U.S.C. 153 (1)) providing telephone exchange or exchange access service (as defined in 47 <PRTPAGE P="8"/>U.S.C. 153 (16) and (47)) or commercial mobile radio service (CMRS) providers offering mobile telephony (as defined in section 20.15(b)(1) of this chapter), which provide at least 10,000 voice-grade equivalent lines or wireless channels or have at least 10,000 end-user consumers in a given state, shall file with the Commission a completed FCC Form 477, in accordance with the Commission's rules and the instructions to the FCC Form 477, for each state in which they exceed this threshold.</P> <P>(b) Respondents identified in paragraph (a) of this section shall file the FCC Form 477 on diskette or via e-mail, as directed in the instructions to the FCC Form 477. Upon submission of each report, an original certification letter (as contained in the instructions to FCC Form 477) signed by the responsible official shall be mailed to the Commission.</P> <P>(c) Respondents may make requests for Commission non-disclosure of provider-specific data contained in the Form 477 under § 0.459 of this chapter by so indicating on the Form 477 at the time that the subject data are submitted. The Commission shall make all decisions regarding non-disclosure of provider-specific information, except that the Chief of the Common Carrier Bureau may release provider-specific information to a state commission, provided that the state commission has protections in place that would preclude disclosure of any confidential information.</P> <P>(d) Respondents identified in paragraph (b) of this section shall file a revised version of FCC Form 477 if and when they discover a significant error in their filed FCC Form 477. For counts, a difference amounting to 5 percent of the filed number is considered significant. For percentages, a difference of 5 percentage points is considered significant.</P> <P>(e) Failure to file FCC Form 477 in accordance with the Commission's rules and the instructions to Form 477 may lead to enforcement action pursuant to the Act and any other applicable law.</P> <CITA>[65 FR 19685, Apr. 12, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 43.21</SECTNO> <SUBJECT>Annual reports of carriers and certain affiliates.</SUBJECT> <P>(a) Communication common carriers having annual operating revenues in excess of the indexed revenue threshold, as defined in § 32.9000, and certain companies (as indicated in paragraph (b) of this section) directly or indirectly controlling such carriers shall file with the Commission annual reports or an annual letter as provided in this section. Except as provided in paragraph (b) of this section, each annual report required by this section shall be filed no later than April 1 of each year, covering the preceding calendar year. It shall be filed on the appropriate report form prescribed by the Commission (see § 1.785 of this chapter) and shall contain full and specific answers to all questions propounded and information requested in the currently effective report forms. The number of copies to be filed shall be specified in the applicable report form. At least one copy of this report shall be signed on the signature page by the responsible accounting officer. A copy of each annual report shall be as retained in the principal office of the respondent and shall be filed in such manner to be readily available for reference and inspection.</P> <P>(b) Each company, not itself a communication common carrier, that directly or indirectly controls any communication common carrier that has annual operating revenues equal to or above the indexed revenue threshold, as defined in § 32.9000, shall file annually with the Commission, not later than the date prescribed by the Securities and Exchange Commission for its purposes, two complete copies of any annual report Forms 10-K (or any superseding form) filed with that Commission.</P> <P>(c) Each miscellaneous common carrier (as defined by § 21.2 of this chapter) with operating revenues for a calendar year in excess of the indexed revenue threshold, as defined in § 32.9000, shall file with the Common Carrier Bureau Chief a letter showing its operating revenues for that year and the value of its total communications plant at the end of that year. This letter must be <PRTPAGE P="9"/>filed no later than April 1 of the following year. Those miscellaneous common carriers with annual operating revenues that equal or surpass the indexed revenue threshold for the first time may file the letter up to one month after publication of the adjusted revenue threshold in the <E T="04">Federal Register</E>, but in no event shall such carriers be required to file the letter prior to April 1.</P> <P>(d) Each communications common carrier required by order to file a manual allocating its costs between regulated and nonregulated operations shall file, on or before April 1:</P> <P>(1) A three-year forecast of regulated and nonregulated use of network plant for the current calendar year and the two calendar years following, and investment pool projections and allocations for the current calendar year; and</P> <P>(2) A report of the actual use of network plant investment for the prior calendar year.</P> <P>(e) Each local exchange carrier with annual operating reveunes equal to or above the indexed revenue threshold shall file, no later than April 1 of each year, reports showing:</P> <P>(1) Its revenues, expenses and investment for all accounts established in part 32 of this chapter, on an operating company basis,</P> <P>(2) The same part 32 of this chapter, on a study area basis, with data for regulated and nonregulated operations for those accounts which are related to the carrier's revenue requirement, and</P> <P>(3) The separations categories on a study area basis, with each category further divided into access elements and a nonaccess interstate category.</P> <P>(f) Each local exchange carrier with operating revenues for the preceding year that equal or exceed the indexed revenue threshold shall file, no later than April 1 of each year, a report showing for the previous calendar year its revenues, expenses, taxes, plant in service, other investment and depreciation reserves, and other such data as are required by the Commission, on computer media prescribed by the Commission. The total operating results shall be allocated between regulated and nonregulated operations, and the regulated data shall be further divided into the following categories: State and interstate, and the interstate will be further divided into common line, traffic sensitive access, special access, and nonaccess.</P> <P>(g) Each local exchange carrier for whom price cap regulation is mandatory and every local exchange carrier that elects to be covered by the price cap rules shall file, by April 1 of each year, a report designed to capture trends in service quality under price cap regulation. The report shall contain data relative to network measures of service quality, as defined by the Common Carrier Bureau, from the previous calendar year on a study area basis.</P> <P>(h) Each local exchange carrier for whom price regulation is mandatory shall file, by April 1 of each year, a report designed to capture trends in service quality under price cap regulation. The report shall contain data relative to customer measures of service quality, as defined by the Common Carrier Bureau, from the previous calendar year on a study area basis.</P> <P>(i) Each local exchange carrier for whom price regulation is mandatory shall file, by April 1 of each year, a report containing data from the previous calendar year on a study area basis that are designed to capture trends in telephone industry infrastructure development under price cap regulation.</P> <P>(j) Each local exchange carrier with annual operating revenues that equal or exceed the indexed revenue threshold shall file, no later than April 1 of each year, a report containing data from the previous calendar year on an operating company basis. Such report shall combine statistical data designed to monitor network growth, usage, and reliability.</P> <P>(k) Each designated interstate carrier with operating revenues for the preceding year that equal or exceed the indexed revenue threshold shall file, no later than April 1 of each year, a report showing for the previous calendar year its revenues, expenses, taxes, plant in service, other investments and depreciation reserves, and such other data as are required by the Commission, on computer media prescribed by the Commission. The total operating results shall be allocated between regulated and nonregulated operations, and <PRTPAGE P="10"/>the regulated data shall be further divided into the following categories: State and interstate, and the interstate will be further divided into common line, traffic sensitive access, special access, and nonaccess.</P> <CITA>[28 FR 13214, Dec. 5, 1963, as amended at 49 FR 10122, Mar. 19, 1984; 50 FR 41153, Oct. 9, 1985; 51 FR 37024, Oct. 17, 1986; 52 FR 35918, Sept. 24, 1987; 58 FR 36143, July 6, 1993; 61 FR 50245, Sept. 25, 1996; 62 FR 39778, July 24, 1997]</CITA> </SECTION> <SECTION> <SECTNO>§ 43.41</SECTNO> <RESERVED>[Reserved]</RESERVED> </SECTION> <SECTION> <SECTNO>§ 43.43</SECTNO> <SUBJECT>Reports of proposed changes in depreciation rates.</SUBJECT> <P>(a) Each communication common carrier with annual operating expenses that equal or exceed the indexed revenue threshold, as defined in § 32.9000, and that has been found by this Commission to be a dominant carrier with respect to any communications service shall, before making any changes in the depreciation rates applicable to its operated plant, file with the Commission a report furnishing the data described in the subsequent paragraphs of this section, and also comply with the other requirements thereof.</P> <P>(b) Each such report shall contain the following:</P> <P>(1) A schedule showing for each class and subclass of plant (whether or not the depreciation rate is proposed to be changed) an appropriate designation therefor, the depreciation rate currently in effect, the proposed rate, and the service-life and net-salvage estimates underlying both the current and proposed depreciation rates;</P> <P>(2) An additional schedule showing for each class and subclass, as well as the totals for all depreciable plant, (i) the book cost of plant at the most recent date available, (ii) the estimated amount of depreciation accruals determined by applying the currently effective rate to the amount of such book cost, (iii) the estimated amount of depreciation accruals determined by applying the rate proposed to be used to the amount of such book cost, and (iv) the difference between the amounts determined in paragraphs (b)(2) (ii) and (iii) of this section;</P> <P>(3) A statement giving the reasons for the proposed change in each rate;</P> <P>(4) A statement describing the method or methods employed in the development of the service-life and salvage estimates underlying each proposed change in a depreciation rate; and</P> <P>(5) The date as of which the revised rates are proposed to be made effective in the accounts.</P> <P>(c) Except as specified in paragraphs (c)(1) and (c)(3) of this section, when the change in the depreciation rate proposed for any class or subclass of plant (other than one occasioned solely by a shift in the relative investment in the several subclasses of the class of plant) amounts to twenty percent (20%) or more of the rate currently applied thereto, or when the proposed change will produce an increase or decrease of one percent (1%) or more of the aggregate depreciation charges for all depreciable plant (based on the amounts determined in compliance with paragraph (b)(2) of this section) the carrier shall supplement the data required by paragraph (b) of this section) with copies of the underlying studies, including calculations and charts, developed by the carrier to support service-life and net-salvage estimates. If a carrier must submit data of a repetitive nature to comply with this requirement, the carrier need only submit a fully illustrative portion thereof.</P> <P>(1) A Local Exchange Carrier regulated under price caps, pursuant to §§ 61.41 through 61.49 of this chapter, is not required to submit the supplemental information described in paragraph (c) introductory text of this section for a specific account if: The carrier's currently prescribed depreciation rate for the specific accounts derived from basic factors that fall within the basic factor ranges established for that same account; and the carrier's proposed depreciation rate for the specific account would also be derived from basic factors that fall within the basic factor ranges for the same account.</P> <P>(2) Local Exchange Carriers that are regulated under price caps, pursuant to §§ 61.41 through 61.49 of this chapter, and have selected basic factors that fall within the basic factor ranges for all accounts are exempt from paragraphs (b)(3), (b)(4), and (c) introductory text of this section. They shall instead comply with paragraphs (b)(1), <PRTPAGE P="11"/>(b)(2) and (b)(5) of this section and provide a book and theoretical reserve summary and a summary of basic factors underlying proposed rates by account.</P> <P>(3) Interexchange carriers regulated under price caps, pursuant to §§ 61.41 through 61.49 of this chapter, are exempted from submitting the supplemental information as described in paragraph (c) introductory text of this section. They shall instead submit: Generation data, a summary of basic factors underlying proposed depreciation rates by account and a short narrative supporting those basic factors, including company plans of forecasted retirements and additions, recent annual retirements, salvage and cost of removal.</P> <P>(d) Each report shall be filed in duplicate and the original shall be signed by the responsible official to whom correspondence related thereto should be addressed.</P> <P>(e) Unless otherwise directed or approved by the Commission, the following shall be observed: Proposed changes in depreciation rates shall be filed at least ninety (90) days prior to the last day of the month with respect to which the revised rates are first to be applied in the accounts (<E T="03">e.g.</E>, if the new rates are to be first applied in the depreciation accounts for September, they must be filed on or before July 1). Such rates may be made retroactive to a date not prior to the beginning of the year in which the filing is made: <E T="03">Provided however, </E>that in no event shall a carrier for which the Commission has prescribed depreciation rates make any changes in such rates unless the changes are prescribed by the Commission. Carriers who select basic factors that fall within the basic factor ranges for all accounts are exempt from depreciation rate prescription by the Commission.</P> <P>(f) Any changes in depreciation rates that are made under the provisions of paragraph (e) of this section shall not be construed as having been approved by the Commission unless the carrier has been specifically so informed.</P> <CITA>[28 FR 13214, Dec. 5, 1963, as amended at 30 FR 3223, Mar. 9, 1965; 53 FR 49987, Dec. 13, 1988; 58 FR 58790, Nov. 4, 1993; 61 FR 50246, Sept. 25, 1996; 62 FR 39779, July 24, 1997; 65 FR 18931, Apr. 10, 2000]</CITA> <EFFDNOT> <HD SOURCE="HED">Effective Date Note:</HD> <P>At 65 FR 18931, Apr. 10, 2000, § 43.43 was amended by revising paragraphs (c) and (e). These paragraphs contain information collection requirements and will not become effective until approval by the Office of Management and Budget.</P> </EFFDNOT> </SECTION> <SECTION> <SECTNO>§ 43.51</SECTNO> <SUBJECT>Contracts and concessions.</SUBJECT> <P>(a) Any communications common carrier that: is engaged in domestic communications and has not been classified as nondominant pursuant to § 61.3 of this chapter or, except as provided in paragraphs (f) and (g) of this section, is engaged in foreign communications, and enters into a contract with another carrier, including an operating agreement with a communications entity in a foreign point for the provision of a common carrier service between the United States and that point; must file with the Commission, within thirty (30) days of execution, a copy of each contract, agreement, concession, license, authorization, operating agreement or other arrangement to which it is a party and amendments thereto with respect to the following:</P> <P>(1) The exchange of services;</P> <P>(2) Except as provided in paragraph (c) of this section, the interchange or routing of traffic and matters concerning rates, accounting rates, division of tolls, or the basis of settlement of traffic balances; and</P> <P>(3) The rights granted to the carrier by any foreign government for the landing, connection, installation, or operation of cables, land lines, radio stations, offices, or for otherwise engaging in communication operations.</P> <P>(b) If the agreement referred to in this section is made other than in writing, a certified statement covering all details thereof must be filed by at least one of the parties to the agreement. Each other party to the agreement which is also subject to these provisions may, in lieu of also filing a copy <PRTPAGE P="12"/>of the agreement, file a certified statement referencing the filed document. The Commission may, at any time and upon reasonable request, require any communication common carrier not subject to the provisions of this section to submit the documents referenced in this section.</P> <P>(c) With respect to contracts coming within the scope of paragraph (a)(2) of this section between subject telephone carriers and connecting carriers, except those contracts related to communications with foreign or overseas points, such documents shall not be filed with the Commission; but each subject telephone carrier shall maintain a copy of such contracts to which it is a party in appropriate files at a central location upon its premises, copies of which shall be readily accessible to Commission staff and members of the public upon reasonable request therefor; and upon request by the Commission, a subject telephone carrier shall promptly forward individual contracts to the Commission.</P> <P>(d) Any U.S. carrier that interconnects an international private line to the U.S. public switched network, at its switch, including any switch in which the carrier obtains capacity either through lease or otherwise, shall file annually with the Chief of the International Bureau a certified statement containing the number and type (e.g., a 64-kbps circuit) of private lines interconnected in such a manner. The certified statement shall specify the number and type of interconnected private lines on a country specific basis. The identity of the customer need not be reported, and the Commission will treat the country of origin information as confidential. Carriers need not file their contracts for such interconnections, unless they are specifically requested to do so. These reports shall be filed on a consolidated basis on February 1 (covering international private lines interconnected during the preceding January 1 to December 31 period) of each year. International private lines to countries for which the Commission has authorized the provision of switched basic services over private lines at any time during a particular reporting period are exempt from this requirement.</P> <P>(e) <E T="03">International settlements policy.</E> (1) Except as provided in paragraph (g) of this section, if a carrier files an operating agreement (whether in the form of a contract, concession, license, etc.) referred to in paragraph (a) of this section to begin providing switched voice, telex, telegraph, or packet-switched service between the United States and a foreign point and the terms and conditions of such agreement relating to the exchange of services, interchange or routing of traffic and matters concerning rates, accounting rates, division of tolls, the allocation of return traffic, or the basis of settlement of traffic balances, are not identical to the equivalent terms and conditions in the operating agreement of another carrier providing the same or similar service between the United States and the same foreign point, the carrier must also file with the International Bureau a modification request under § 64.1001 of this chapter. Unless a carrier is providing switched voice, telex, telegraph, or packet-switched service between the United States and a foreign point pursuant to an operating agreement that is exempt from the international settlements policy under paragraph (g) of this section, the carrier shall not bargain for or agree to accept more than its proportionate share of return traffic.</P> <P>(2) Except as provided in paragraph (g) of this section, if a carrier files an amendment to the operating agreement referred to in paragraph (a) of this section under which it already provides switched voice, telex, telegraph, or packet-switched service between the United States and a foreign point, and other carriers provide the same or similar service to the same foreign point, and the amendment relates to the exchange of services, interchange or routing of traffic and matters concerning rates, accounting rates, division of tolls, the allocation of return traffic, or the basis of settlement of traffic balances, the carrier must also file with the International Bureau a modification request under § 64.1001 of this chapter.</P> <P>(f) <E T="03">Confidential treatment.</E> (1) A carrier providing service on an international route that is exempt from the international settlements policy under <PRTPAGE P="13"/>paragraph (g)(2) of this section, but that is required by paragraph (a) or (b) of this section to file a contract covering that route with the Commission, may request confidential treatment under § 0.457 of this chapter for the rates, terms and conditions that govern the settlement of U.S. international traffic.</P> <P>(2) Carriers requesting confidential treatment under this paragraph must include the information specified in § 64.1001(c) of this chapter. Such filings shall be made with the Commission, with a copy to the Chief, International Bureau. The transmittal letter accompanying the confidential filing shall clearly identify the filing as responsive to § 43.51(f).</P> <P>(g) Exemption from the international settlements policy and contract filing requirements.</P> <P>(1) A carrier that enters into a contract, including an operating agreement, for the provision of a common carrier service between the United States and a foreign point with a carrier that lacks market power in that foreign market is not subject to the requirements of paragraphs (a), (b) or (e) of this section.</P> <P>(i) A foreign carrier lacks market power for purposes of paragraph (g)(1) of this section if it does not appear on the Commission's list of foreign carriers that do not qualify for the presumption that they lack market power in particular foreign points. The list of foreign carriers that do not qualify for the presumption that they lack market power in particular foreign points is available from the International Bureau's World Wide Web site at http://www.fcc.gov/ib.</P> <P>(ii) The Commission will include on the list of foreign carriers that do not qualify for the presumption that they lack market power in particular foreign points any foreign carrier that has 50 percent or more market share in the international transport or local access markets of a foreign point. A party that seeks to remove such a carrier from the Commission's list bears the burden of submitting information to the Commission sufficient to demonstrate that the foreign carrier lacks 50 percent market share in the international transport and local access markets on the foreign end of the route or that it nevertheless lacks sufficient market power on the foreign end of the route to affect competition adversely in the U.S. market. A party that seeks to add a carrier to the Commission's list bears the burden of submitting information to the Commission sufficient to demonstrate that the foreign carrier has 50 percent or more market share in the international transport or local access markets on the foreign end of the route or that it nevertheless has sufficient market power to affect competition adversely in the U.S. market.</P> <P>(2) A carrier that enters into a contract, including an operating agreement, with a carrier in a foreign point for the provision of a common carrier service between the United States and that point is not subject to the international settlements policy in paragraph (e) of this section if the foreign point appears on the Commission's list of international routes that the Commission has exempted from the international settlements policy. The list of exempt routes is available from the International Bureau's World Wide Web site at http://www.fcc.gov/ib.</P> <P>(i) A party that seeks to add a foreign market to the list of markets that are exempt from the international settlements policy must show that U.S. carriers are able to terminate at least 50 percent of U.S.-billed traffic in the foreign market at rates that are at least 25 percent below the benchmark settlement rate adopted for that country in IB Docket No. 96-261.</P> <P>(ii) A party that seeks to remove a foreign market from the list of markets that are exempt from the international settlements policy must show that U.S. carriers are unable to terminate at least 50 percent of U.S.-billed traffic in the foreign market at rates that are at least 25 percent below the benchmark settlement rate adopted for that country in IB Docket No. 96-261. </P> <NOTE> <HD SOURCE="HED">Note to paragraph</HD> <P>(g): The Commission's benchmark settlement rates are available in International Settlement Rates, IB Docket <PRTPAGE P="14"/>No. 96-261, <E T="03">Report and Order,</E> 12 FCC Rcd 19,806, 62 FR 45758 (August 29, 1997).</P> </NOTE> <CITA>[51 FR 45890, Dec. 23, 1986, as amended at 56 FR 25371, June 4, 1991; 57 FR 647, Jan. 8, 1992; 58 FR 48323, Sept. 15, 1993; 60 FR 52866, Oct. 11, 1995; 61 FR 59200, Nov. 21, 1996; 62 FR 5541, Feb. 6, 1997; 62 FR 8633, Feb. 26, 1997; 62 FR 64751, Dec. 9, 1997; 64 FR 34740, June 29, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 43.53</SECTNO> <SUBJECT>Reports regarding division of international toll communication charges.</SUBJECT> <P>(a) Each communication common carrier engaged directly in the transmission or reception of telegraph communications between the continental United States and any foreign country (other than one to which the domestic word-count applies) shall file a report with the Commission within thirty (30) days of the date of any arrangement concerning the division of the total telegraph charges on such communications other than transiting. A carrier first becoming subject to the provisions of this section must, within thirty (30) days thereafter, file with the Commission a report covering any such existing arrangements.</P> <P>(b) In the event that any change is made which affects data previously filed, a revised page incorporating such change or changes must be filed with the Commission not later than thirty (30) days from the date the change is made, provided, however, that any change in the amount of foreign participation in charges for outbound communications or in the respondent's participation in charges for inbound communications must be filed not later than thirty (30) days from the date the change is agreed upon.</P> <P>(c) A single copy of each such report must be filed in a format that contains a clear, concise and definite statement of the arrangements.</P> <CITA>[51 FR 45891, Dec. 23, 1986, as amended at 52 FR 8453, Mar. 18, 1987]</CITA> </SECTION> <SECTION> <SECTNO>§ 43.61</SECTNO> <SUBJECT>Reports of international telecommunications traffic.</SUBJECT> <P>(a) Each common carrier engaged in providing international telecommunications service between the area comprising the continental United States, Alaska, Hawaii, and off-shore U.S. points and any country or point outside that area shall file a report with the Commission not later than July 31 of each year for service actually provided in the preceding calendar year.</P> <P>(1) The information contained in the reports shall include actual traffic and revenue data for each and every service provided by a common carrier, divided among service billed in the United States, service billed outside the United States, and service transiting the United States. In addition, it shall include the number of minutes of outbound and inbound traffic settled pursuant to each alternative arrangement entered into pursuant to § 64.1002 of this chapter.</P> <P>(2) Each common carrier shall submit a revised report by October 31 identifying and correcting any inaccuracies included in the annual report exceeding five percent of the reported figure.</P> <P>(3) The information required under this section shall be furnished in conformance with the instructions and reporting requirements prepared under the direction of the Chief, Common Carrier Bureau, prepared and published as a manual, in consultation and coordination with the Chief, International Bureau.</P> <P>(b)<E T="03"> Quarterly Traffic Reports</E>. (1) Each common carrier engaged in providing international telecommunicaitons service between the area comprising the continental United States, Alaska, Hawaii, and off-shore U.S. points and any country or point outside that area shall file with the Commission, in addition to the report required by paragraph (a) of this section, actual traffic and revenue data for each calendar quarter in which the carrier's quarterly minutes exceed the corresponding minutes for all carriers by one or more of the following tests:</P> <P>(i) The carrier's aggregate minutes of facilities-based or facilities resale switched telephone traffic for service billed in the United States are greater than 1.0 percent of the total of such minutes of international traffic for all U.S. carriers published in the Commission's most recent § 43.61 annual report of international telecommunications traffic;</P> <P>(ii) The carrier's aggragate minutes of facilities-based or facilities resale switched telephone traffic for service billed outside the United States are <PRTPAGE P="15"/>greater than 1.0 percent of the total of such minutes of international traffic for all U.S. carriers published in the Commission's most recent § 43.61 annual report of international telecommunications traffic;</P> <P>(iii) The carrier's aggregate minutes of facilities-based or facilities switched telephone traffic for service billed in the United States for any foreign country are greater than 2.5 percent of the total of such minutes of international traffic for that country for all U.S. carriers published in the Commission's most recent § 43.61 annual report of international telecommunications traffic; or</P> <P>(iv) The carrier's aggregate minutes of facilities-based or facilities resale switched telephone traffic for service billed outside the United States for any foreign country are greater than 2.5 percent of the total of such minutes of international traffic for that country for all U.S. carriers published in the Commission's most recent § 43.61 annual report of international telecommunications traffic.</P> <P>(2) Except as provided in this paragraph, the quarterly reports required by paragraph (b)(1) of this section shall be filed in the same format as, and in conformance with, the filing procedures for the annual reports required by paragraph (a) of this section.</P> <P>(i) Carriers filing quarterly reports shall include in those reports only their provision of switched, facilities-based telephone service and switched, facilities resale telephone service.</P> <P>(ii) The quarterly reports required by paragraph (b)(1) of this section shall be filed with the Commission no later than April 30 for the prior January through March quarter; no later than July 31 for the prior April through June quarter; no later than October 31 for the prior July through September quarter; and no later than January 31 for the prior October through December period.</P> <P>(c) Each common carrier engaged in the resale of international switched services that is affiliated with a foreign carrier that has sufficient market power on the foreign end of an international route to affect competition adversely in the U.S. market and that collects settlement payments from U.S. carriers shall file a quarterly version of the report required in paragraph (a) of this section for its switched resale services on the dominant route within 90 days from the end of each calendar quarter. For purposes of this paragraph, <E T="03">affiliated</E> and <E T="03">foreign carrier</E> are defined in § 63.09 of this chapter.</P> <CITA>[57 FR 8580, Mar. 11, 1992, as amended at 60 FR 5333, Jan. 27, 1995; 62 FR 5541, Feb. 6, 1997; 62 FR 45761, Aug. 29, 1997; 64 FR 19061, Apr. 19, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 43.72</SECTNO> <RESERVED>[Reserved]</RESERVED> </SECTION> <SECTION> <SECTNO>§ 43.81</SECTNO> <SUBJECT>Reports of carriers owned by foreign telecommunications entities.</SUBJECT> <P>(a) The following carriers are required to file with the Commission an annual revenue and traffic report in triplicate with respect to all common carrier telecommunications services they offer within the United States.</P> <P>(1) Cable and Wireless Communications, Inc.;</P> <P>(2) FTCC Communications Inc.; and</P> <P>(3) Consortium Communications International, Inc.</P> <P>(b) The Chief, International Bureau has the authority to require that no more than six additional communications carriers owned by foreign telecommunications entities that are classified as dominant for the provision of international telecommunications services originating or terminating in the United States file § 43.81 reports.</P> <P>(c) The report should be captioned—§ 43.81 report and should provide the following:</P> <P>(1) Revenues, number of messages and number of minutes for message telephone service traffic originated and/or terminated by the filing carrier;</P> <P>(2) Revenues, number of messages, and number of minutes for telex traffic originated and/or terminated by the filing carrier;</P> <P>(3) Revenues, number of messages, and number of minutes for telegraph traffic originated and/or terminated by the filing carrier;</P> <P>(4) Revenues, number of messages, and number of minutes for any other basic switched services (specified by service) originated and/or terminated by the filing carrier; and<PRTPAGE P="16"/> </P> <P>(5) Number of leases and revenues from private line services provided by the filing carrier.</P> <P>(d) Section 43.81 Reports for:</P> <P>(1) The calendar year 1988 must be filed on or before August 1, 1989;</P> <P>(2) The calendar year 1989 must be filed on or before August 1, 1990; and</P> <P>(3) The calendar year 1990 must be filed on or before August 1, 1991.</P> <P>(e) These reports shall apply to nine or fewer persons and therefore are not subject to the review of the Office of Management and Budget under the Paperwork Reduction Act.</P> <CITA>[54 FR 2130, Jan. 19, 1989, as amended at 60 FR 5333, Jan. 27, 1995]</CITA> </SECTION> <SECTION> <SECTNO>§ 43.82</SECTNO> <SUBJECT>International circuit status reports.</SUBJECT> <P>(a) Each facilities-based common carrier engaged in providing international telecommunications service between the area comprising the continental United States, Alaska, Hawaii, and off-shore U.S. points and any country or point outside that area shall file a circuit status report with the Chief, International Bureau, not later than March 31 each year showing the status of its circuits used to provide international services as of December 31 of the preceding calendar year.</P> <P>(b) The information contained in the reports shall include the total number of activated and the total number of idle circuits by the categories of submarine cable, satellite and terrestrial facilities to geographic points outside the United States for the services designated by the Chief, International Bureau.</P> <P>(c) The information required under this section shall be furnished in conformance with instructions and reporting requirements prepared under the direction of the Chief, International Bureau, prepared and published as a manual.</P> <P>(d) Authority is hereby delegated to the Chief, International Bureau to prepare instructions and reporting requirements for the filing of the annual international circuit status reports.</P> <CITA>[60 FR 51368, Oct. 2, 1995]</CITA> </SECTION> </PART> <PART> <EAR>Pt. 51</EAR> <HD SOURCE="HED">PART 51—INTERCONNECTION</HD> <CONTENTS> <SUBPART> <HD SOURCE="HED">Subpart A—General Information</HD> <SECHD>Sec.</SECHD> <SECTNO>51.1</SECTNO> <SUBJECT>Basis and purpose.</SUBJECT> <SECTNO>51.3</SECTNO> <SUBJECT>Applicability to negotiated agreements.</SUBJECT> <SECTNO>51.5</SECTNO> <SUBJECT>Terms and definitions.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart B—Telecommunications Carriers</HD> <SECTNO>51.100</SECTNO> <SUBJECT>General duty.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart C—Obligations of All Local Exchange Carriers</HD> <SECTNO>51.201</SECTNO> <SUBJECT>Resale.</SUBJECT> <SECTNO>51.203</SECTNO> <SUBJECT>Number portability.</SUBJECT> <SECTNO>51.205</SECTNO> <SUBJECT>Dialing parity: General.</SUBJECT> <SECTNO>51.207</SECTNO> <SUBJECT>Local dialing parity.</SUBJECT> <SECTNO>51.209</SECTNO> <SUBJECT>Toll dialing parity.</SUBJECT> <SECTNO>51.211</SECTNO> <SUBJECT>Toll dialing parity implementation schedule.</SUBJECT> <SECTNO>51.213</SECTNO> <SUBJECT>Toll dialing parity implementation plans.</SUBJECT> <SECTNO>51.215</SECTNO> <SUBJECT>Dialing parity: Cost recovery.</SUBJECT> <SECTNO>51.217</SECTNO> <SUBJECT>Nondiscriminatory access: Telephone numbers, operator services, directory assistance services, and directory listings.</SUBJECT> <SECTNO>51.219</SECTNO> <SUBJECT>Access to rights of way.</SUBJECT> <SECTNO>51.221</SECTNO> <SUBJECT>Reciprocal compensation.</SUBJECT> <SECTNO>51.223</SECTNO> <SUBJECT>Application of additional requirements.</SUBJECT> <SECTNO>51.230</SECTNO> <SUBJECT>Presumption of acceptability for deployment of an advanced services loop technology.</SUBJECT> <SECTNO>51.231</SECTNO> <SUBJECT>Provision of information on advanced services deployment.</SUBJECT> <SECTNO>51.232</SECTNO> <SUBJECT>Binder group management.</SUBJECT> <SECTNO>51.233</SECTNO> <SUBJECT>Significant degradation of services caused by deployment of advanced services.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart D—Additional Obligations of Incumbent Local Exchange Carriers</HD> <SECTNO>51.301</SECTNO> <SUBJECT>Duty to negotiate.</SUBJECT> <SECTNO>51.303</SECTNO> <SUBJECT>Preexisting agreements.</SUBJECT> <SECTNO>51.305</SECTNO> <SUBJECT>Interconnection.</SUBJECT> <SECTNO>51.307</SECTNO> <SUBJECT>Duty to provide access on an unbundled basis to network elements.</SUBJECT> <SECTNO>51.309</SECTNO> <SUBJECT>Use of unbundled network elements.</SUBJECT> <SECTNO>51.311</SECTNO> <SUBJECT>Nondiscriminatory access to unbundled network elements.</SUBJECT> <SECTNO>51.313</SECTNO> <SUBJECT>Just, reasonable and nondiscrimi-natory terms and conditions for the provision of unbundled network elements.</SUBJECT> <SECTNO>51.315</SECTNO> <SUBJECT>Combination of unbundled network elements.</SUBJECT> <SECTNO>51.317</SECTNO> <SUBJECT>Standards for requiring the unbundling of network elements.</SUBJECT> <SECTNO>51.319</SECTNO> <SUBJECT>Specific unbundling requirements.</SUBJECT> <SECTNO>51.321</SECTNO> <SUBJECT>Methods of obtaining intercon-nection and access to unbundled elements under section 251 of the Act.<PRTPAGE P="17"/> </SUBJECT> <SECTNO>51.323</SECTNO> <SUBJECT>Standards for physical collocation and virtual collocation.</SUBJECT> <SECTNO>51.325</SECTNO> <SUBJECT>Notice of network changes: Public notice requirement.</SUBJECT> <SECTNO>51.327</SECTNO> <SUBJECT>Notice of network changes: Content of notice.</SUBJECT> <SECTNO>51.329</SECTNO> <SUBJECT>Notice of network changes: Methods for providing notice.</SUBJECT> <SECTNO>51.331</SECTNO> <SUBJECT>Notice of network changes: Timing of notice.</SUBJECT> <SECTNO>51.333</SECTNO> <SUBJECT>Notice of network changes: Short term notice.</SUBJECT> <SECTNO>51.335</SECTNO> <SUBJECT>Notice of network changes: Confidential or proprietary information.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart E—Exemptions, Suspensions, and Modifications of Requirements of Section 251 of the Act</HD> <SECTNO>51.401</SECTNO> <SUBJECT>State authority.</SUBJECT> <SECTNO>51.403</SECTNO> <SUBJECT>Carriers eligible for suspension or modification under section 251(f)(2) of the Act.</SUBJECT> <SECTNO>51.405</SECTNO> <SUBJECT>Burden of proof.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart F—Pricing of Elements</HD> <SECTNO>51.501</SECTNO> <SUBJECT>Scope.</SUBJECT> <SECTNO>51.503</SECTNO> <SUBJECT>General pricing standard.</SUBJECT> <SECTNO>51.505</SECTNO> <SUBJECT>Forward-looking economic cost.</SUBJECT> <SECTNO>51.507</SECTNO> <SUBJECT>General rate structure standard.</SUBJECT> <SECTNO>51.509</SECTNO> <SUBJECT>Rate structure standards for specific elements.</SUBJECT> <SECTNO>51.511</SECTNO> <SUBJECT>Forward-looking economic cost per unit.</SUBJECT> <SECTNO>51.513</SECTNO> <SUBJECT>Proxies for forward-looking economic cost.</SUBJECT> <SECTNO>51.515</SECTNO> <SUBJECT>Application of access charges.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart G—Resale</HD> <SECTNO>51.601</SECTNO> <SUBJECT>Scope of resale rules.</SUBJECT> <SECTNO>51.603</SECTNO> <SUBJECT>Resale obligation of all local exchange carriers.</SUBJECT> <SECTNO>51.605</SECTNO> <SUBJECT>Additional obligations of incumbent local exchange carriers.</SUBJECT> <SECTNO>51.607</SECTNO> <SUBJECT>Wholesale pricing standard.</SUBJECT> <SECTNO>51.609</SECTNO> <SUBJECT>Determination of avoided retail costs.</SUBJECT> <SECTNO>51.611</SECTNO> <SUBJECT>Interim wholesale rates.</SUBJECT> <SECTNO>51.613</SECTNO> <SUBJECT>Restrictions on resale.</SUBJECT> <SECTNO>51.615</SECTNO> <SUBJECT>Withdrawal of services.</SUBJECT> <SECTNO>51.617</SECTNO> <SUBJECT>Assessment of end user common line charge on resellers.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart H—Reciprocal Compensation for Transport and Termination of Local Telecommunications Traffic</HD> <SECTNO>51.701</SECTNO> <SUBJECT>Scope of transport and termination pricing rules.</SUBJECT> <SECTNO>51.703</SECTNO> <SUBJECT>Reciprocal compensation obligation of LECs.</SUBJECT> <SECTNO>51.705</SECTNO> <SUBJECT>Incumbent LECs' rates for transport and termination.</SUBJECT> <SECTNO>51.707</SECTNO> <SUBJECT>Default proxies for incumbent LECs' transport and termination rates.</SUBJECT> <SECTNO>51.709</SECTNO> <SUBJECT>Rate structure for transport and termination.</SUBJECT> <SECTNO>51.711</SECTNO> <SUBJECT>Symmetrical reciprocal compensation.</SUBJECT> <SECTNO>51.713</SECTNO> <SUBJECT>Bill-and-keep arrangements for reciprocal compensation.</SUBJECT> <SECTNO>51.715</SECTNO> <SUBJECT>Interim transport and termination pricing.</SUBJECT> <SECTNO>51.717</SECTNO> <SUBJECT>Renegotiation of existing non-reciprocal arrangements.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart I—Procedures for Implementation of Section 252 of the Act</HD> <SECTNO>51.801</SECTNO> <SUBJECT>Commission action upon a state commission's failure to act to carry out its responsibility under section 252 of the Act.</SUBJECT> <SECTNO>51.803</SECTNO> <SUBJECT>Procedures for Commission notification of a state commission's failure to act.</SUBJECT> <SECTNO>51.805</SECTNO> <SUBJECT>The Commission's authority over proceedings and matters.</SUBJECT> <SECTNO>51.807</SECTNO> <SUBJECT>Arbitration and mediation of agreements by the Commission pursuant to section 252(e)(5) of the Act.</SUBJECT> <SECTNO>51.809</SECTNO> <SUBJECT>Availability of provisions of agreements to other telecommunications carriers under section 252(i) of the Act.</SUBJECT> </SUBPART> </CONTENTS> <AUTH> <HD SOURCE="HED">Authority:</HD> <P>Sections 1-5, 7, 201-05, 207-09, 218, 225-27, 251-54, 271, 332, 48 Stat. 1070, as amended, 1077; 47 U.S.C. §§ 151-55, 157, 201-05, 207-09, 218, 225-27, 251-54, 271, 332, unless otherwise noted.</P> </AUTH> <SOURCE> <HD SOURCE="HED">Source:</HD> <P>61 FR 45619, Aug. 29, 1996, unless otherwise noted.</P> </SOURCE> <SUBPART> <HD SOURCE="HED">Subpart A—General Information</HD> <SECTION> <SECTNO>§ 51.1</SECTNO> <SUBJECT>Basis and purpose.</SUBJECT> <P>(a) <E T="03">Basis.</E> These rules are issued pursuant to the Communications Act of 1934, as amended.</P> <P>(b) <E T="03">Purpose.</E> The purpose of these rules is to implement sections 251 and 252 of the Communications Act of 1934, as amended, 47 U.S.C. 251 and 252.</P> </SECTION> <SECTION> <SECTNO>§ 51.3</SECTNO> <SUBJECT>Applicability to negotiated agreements.</SUBJECT> <P>To the extent provided in section 252(e)(2)(A) of the Act, a state commission shall have authority to approve an interconnection agreement adopted by negotiation even if the terms of the agreement do not comply with the requirements of this part.</P> </SECTION> <SECTION> <SECTNO>§ 51.5</SECTNO> <SUBJECT>Terms and definitions.</SUBJECT> <P>Terms used in this part have the following meanings:</P> <P> <E T="03">Act.</E> The Communications Act of 1934, as amended.<PRTPAGE P="18"/> </P> <P> <E T="03">Advanced intelligent network. Advanced intelligent network</E> is a telecommunications network architecture in which call processing, call routing, and network management are provided by means of centralized databases located at points in an incumbent local exchange carrier's network.</P> <P> <E T="03">Advanced services.</E> The term “advanced services” is defined as high speed, switched, broadband, wireline telecommunications capability that enables users to originate and receive high-quality voice, data, graphics or video telecommunications using any technology.</P> <P> <E T="03">Arbitration, final offer. Final offer arbitration</E> is a procedure under which each party submits a final offer concerning the issues subject to arbitration, and the arbitrator selects, without modification, one of the final offers by the parties to the arbitration or portions of both such offers. “Entire package final offer arbitration,” is a procedure under which the arbitrator must select, without modification, the entire proposal submitted by one of the parties to the arbitration. “Issue-by-issue final offer arbitration,” is a procedure under which the arbitrator must select, without modification, on an issue-by-issue basis, one of the proposals submitted by the parties to the arbitration.</P> <P> <E T="03">Billing. Billing</E> involves the provision of appropriate usage data by one telecommunications carrier to another to facilitate customer billing with attendant acknowledgements and status reports. It also involves the exchange of information between telecommunications carriers to process claims and adjustments.</P> <P> <E T="03">Binder or binder group.</E> Copper pairs bundled together, generally in groups of 25, 50 or 100.</P> <P> <E T="03">Commercial Mobile Radio Service</E> (CMRS). <E T="03">CMRS</E> has the same meaning as that term is defined in § 20.3 of this chapter.</P> <P> <E T="03">Commission. Commission</E> refers to the Federal Communications Commission.</P> <P> <E T="03">Day. Day</E> means calendar day.</P> <P> <E T="03">Dialing parity.</E> The term <E T="03">dialing parity</E> means that a person that is not an affiliate of a local exchange carrier is able to provide telecommunications services in such a manner that customers have the ability to route automatically, without the use of any access code, their telecommunications to the telecommunications service provider of the customer's designation from among 2 or more telecommunications service providers (including such local exchange carrier).</P> <P> <E T="03">Directory assistance service. Directory assistance service</E> includes, but is not limited to, making available to customers, upon request, information contained in directory listings.</P> <P> <E T="03">Directory listings. Directory listings</E> are any information:</P> <P>(1) Identifying the listed names of subscribers of a telecommunications carrier and such subscriber's telephone numbers, addresses, or primary advertising classifications (as such classifications are assigned at the time of the establishment of such service), or any combination of such listed names, numbers, addresses or classifications; and</P> <P>(2) That the telecommunications carrier or an affiliate has published, caused to be published, or accepted for publication in any directory format.</P> <P> <E T="03">Downstream database.</E> A <E T="03">downstream database</E> is a database owned and operated by an individual carrier for the purpose of providing number portability in conjunction with other functions and services.</P> <P> <E T="03">Equipment necessary for interconnection or access to unbundled network elements.</E> For purposes of section 251(c)(2) of the Act, the equipment used to interconnect with an incumbent local exchange carrier's network for the transmission and routing of telephone exchange service, exchange access service, or both. For the purposes of section 251(c)(3) of the Act, the equipment used to gain access to an incumbent local exchange carrier's unbundled network elements for the provision of a telecommunications service.</P> <P> <E T="03">Incumbent Local Exchange Carrier</E> (Incumbent LEC). With respect to an area, the local exchange carrier that:</P> <P>(1) On February 8, 1996, provided telephone exchange service in such area; and</P> <P>(2)(i) On February 8, 1996, was deemed to be a member of the exchange carrier association pursuant to § 69.601(b) of this chapter; or<PRTPAGE P="19"/> </P> <P>(ii) Is a person or entity that, on or after February 8, 1996, became a successor or assign of a member described in paragraph (2)(i) of this section.</P> <P> <E T="03">Information services.</E> The term <E T="03">information services</E> means the offering of a capability for generating, acquiring, storing, transforming, processing, retrieving, utilizing, or making available information via telecommunications, and includes electronic publishing, but does not include any use of any such capability for the management, control, or operation of a telecommunications system or the management of a telecommunications service.</P> <P> <E T="03">Interconnection. Interconnection</E> is the linking of two networks for the mutual exchange of traffic. This term does not include the transport and termination of traffic.</P> <P> <E T="03">Known disturber.</E> An advanced services technology that is prone to cause significant interference with other services deployed in the network.</P> <P> <E T="03">Local Access and Transport Area</E> (LATA). A <E T="03">Local Access and Transport Area</E> is a contiguous geographic area—</P> <P>(1) Established before February 8, 1996 by a Bell operating company such that no exchange area includes points within more than 1 metropolitan statistical area, consolidated metropolitan statistical area, or State, except as expressly permitted under the AT&T Consent Decree; or</P> <P>(2) Established or modified by a Bell operating company after February 8, 1996 and approved by the Commission.</P> <P> <E T="03">Local Exchange Carrier</E> (LEC). A <E T="03">LEC</E> is any person that is engaged in the provision of telephone exchange service or exchange access. Such term does not include a person insofar as such person is engaged in the provision of a commercial mobile service under section 332(c) of the Act, except to the extent that the Commission finds that such service should be included in the definition of the such term.</P> <P> <E T="03">Maintenance and repair. Maintenance and repair</E> involves the exchange of information between telecommunications carriers where one initiates a request for maintenance or repair of existing products and services or unbundled network elements or combination thereof from the other with attendant acknowledgements and status reports.</P> <P> <E T="03">Meet point.</E> A <E T="03">meet point</E> is a point of interconnection between two networks, designated by two telecommunications carriers, at which one carrier's responsibility for service begins and the other carrier's responsibility ends.</P> <P> <E T="03">Meet point interconnection arrangement.</E> A <E T="03">meet point interconnection arrangement</E> is an arrangement by which each telecommunications carrier builds and maintains its network to a meet point.</P> <P> <E T="03">Network element.</E> A <E T="03">network element</E> is a facility or equipment used in the provision of a telecommunications service. Such term also includes, but is not limited to, features, functions, and capabilities that are provided by means of such facility or equipment, including but not limited to, subscriber numbers, databases, signaling systems, and information sufficient for billing and collection or used in the transmission, routing, or other provision of a telecommunications service.</P> <P> <E T="03">Operator services. Operator services</E> are any automatic or live assistance to a consumer to arrange for billing or completion of a telephone call. Such services include, but are not limited to, busy line verification, emergency interrupt, and operator-assisted directory assistance services.</P> <P> <E T="03">Physical collocation. Physical collocation</E> is an offering by an incumbent LEC that enables a requesting telecommunications carrier to:</P> <P>(1) Place its own equipment to be used for interconnection or access to unbundled network elements within or upon an incumbent LEC's premises;</P> <P>(2) Use such equipment to interconnect with an incumbent LEC's network facilities for the transmission and routing of telephone exchange service, exchange access service, or both, or to gain access to an incumbent LEC's unbundled network elements for the provision of a telecommunications service;</P> <P>(3) Enter those premises, subject to reasonable terms and conditions, to install, maintain, and repair equipment necessary for interconnection or access to unbundled elements; and</P> <P>(4) Obtain reasonable amounts of space in an incumbent LEC's premises, <PRTPAGE P="20"/>as provided in this part, for the equipment necessary for interconnection or access to unbundled elements, allocated on a first-come, first-served basis.</P> <P> <E T="03">Premises. Premises</E> refers to an incumbent LEC's central offices and serving wire centers; all buildings or similar structures owned, leased, or otherwise controlled by an incumbent LEC that house its network facilities; all structures that house incumbent LEC facilities on public rights-of-way, including but not limited to vaults containing loop concentrators or similar structures; and all land owned, leased, or otherwise controlled by an incumbent LEC that is adjacent to these central offices, wire centers, buildings, and structures.</P> <P> <E T="03">Pre-ordering and ordering. </E>Pre-ordering and ordering includes the exchange of information between telecommunications carriers about: current or proposed customer products and services; or unbundled network elements, or some combination thereof. This information includes loop qualification information, such as the composition of the loop material, including but not limited to: fiber optics or copper; the existence, location and type of any electronic or other equipment on the loop, including but not limited to, digital loop carrier or other remote concentration devices, feeder/distribution interfaces, bridge taps, load coils, pair-gain devices, disturbers in the same or adjacent binder groups; the loop length, including the length and location of each type of transmission media; the wire gauge(s) of the loop; and the electrical parameters of the loop, which may determine the suitability of the loop for various technologies.</P> <P> <E T="03">Provisioning. Provisioning</E> involves the exchange of information between telecommunications carriers where one executes a request for a set of products and services or unbundled network elements or combination thereof from the other with attendant acknowledgements and status reports.</P> <P> <E T="03">Rural telephone company.</E> A <E T="03">rural telephone company</E> is a LEC operating entity to the extent that such entity:</P> <P>(1) Provides common carrier service to any local exchange carrier study area that does not include either:</P> <P>(i) Any incorporated place of 10,000 inhabitants or more, or any part thereof, based on the most recently available population statistics of the Bureau of the Census; or</P> <P>(ii) Any territory, incorporated or unincorporated, included in an urbanized area, as defined by the Bureau of the Census as of August 10, 1993;</P> <P>(2) Provides telephone exchange service, including exchange access, to fewer than 50,000 access lines;</P> <P>(3) Provides telephone exchange service to any local exchange carrier study area with fewer than 100,000 access lines; or</P> <P>(4) Has less than 15 percent of its access lines in communities of more than 50,000 on February 8, 1996.</P> <P> <E T="03">Service control point.</E> A <E T="03">service control point</E> is a computer database in the public switched network which contains information and call processing instructions needed to process and complete a telephone call.</P> <P> <E T="03">Service creation environment.</E> A <E T="03">service creation environment</E> is a computer containing generic call processing software that can be programmed to create new advanced intelligent network call processing services.</P> <P> <E T="03">Service provider.</E> A <E T="03">service provider</E> is a provider of telecommunications services or a provider of information services.</P> <P> <E T="03">Signal transfer point.</E> A <E T="03">signal transfer point</E> is a packet switch that acts as a routing hub for a signaling network and transfers messages between various points in and among signaling networks.</P> <P> <E T="03">State.</E> The term <E T="03">state</E> includes the District of Columbia and the Territories and possessions.</P> <P> <E T="03">State commission.</E> A <E T="03">state commission</E> means the commission, board, or official (by whatever name designated) which under the laws of any State has regulatory jurisdiction with respect to intrastate operations of carriers. As referenced in this part, this term may include the Commission if it assumes the responsibility of the state commission, pursuant to section 252(e)(5) of the Act. This term shall also include any person or persons to whom the <PRTPAGE P="21"/>state commission has delegated its authority under section 251 and 252 of the Act.</P> <P> <E T="03">State proceeding.</E> A <E T="03">state proceeding</E> is any administrative proceeding in which a state commission may approve or prescribe rates, terms, and conditions including, but not limited to, compulsory arbitration pursuant to section 252(b) of the Act, review of a Bell operating company statement of generally available terms pursuant to section 252(f) of the Act, and a proceeding to determine whether to approve or reject an agreement adopted by arbitration pursuant to section 252(e) of the Act.</P> <P> <E T="03">Technically feasible.</E> Interconnection, access to unbundled network elements, collocation, and other methods of achieving interconnection or access to unbundled network elements at a point in the network shall be deemed technically feasible absent technical or operational concerns that prevent the fulfillment of a request by a telecommunications carrier for such interconnection, access, or methods. A determination of technical feasibility does not include consideration of economic, accounting, billing, space, or site concerns, except that space and site concerns may be considered in circumstances where there is no possibility of expanding the space available. The fact that an incumbent LEC must modify its facilities or equipment to respond to such request does not determine whether satisfying such request is technically feasible. An incumbent LEC that claims that it cannot satisfy such request because of adverse network reliability impacts must prove to the state commission by clear and convincing evidence that such interconnection, access, or methods would result in specific and significant adverse network reliability impacts.</P> <P> <E T="03">Telecommunications carrier.</E> A <E T="03">telecommunications carrier</E> is any provider of telecommunications services, except that such term does not include aggregators of telecommunications services (as defined in section 226 of the Act). A telecommunications carrier shall be treated as a common carrier under the Act only to the extent that it is engaged in providing telecommunications services, except that the Commission shall determine whether the provision of fixed and mobile satellite service shall be treated as common carriage. This definition includes CMRS providers, interexchange carriers (IXCs) and, to the extent they are acting as telecommunications carriers, companies that provide both telecommunications and information services. Private Mobile Radio Service providers are telecommunications carriers to the extent they provide domestic or international telecommunications for a fee directly to the public.</P> <P> <E T="03">Telecommunications service.</E> The term <E T="03">telecommunications service</E> refers to the offering of telecommunications for a fee directly to the public, or to such classes of users as to be effectively available directly to the public, regardless of the facilities used.</P> <P> <E T="03">Telephone exchange service.</E> A <E T="03">telephone exchange service</E> is:</P> <P>(1) A service within a telephone exchange, or within a connected system of telephone exchanges within the same exchange area operated to furnish to subscribers intercommunicating service of the character ordinarily furnished by a single exchange, and which is covered by the exchange service charge, or</P> <P>(2) A comparable service provided through a system of switches, transmission equipment, or other facilities (or combination thereof) by which a subscriber can originate and terminate a telecommunications service.</P> <P> <E T="03">Telephone toll service.</E> The term <E T="03">telephone toll service</E> refers to telephone service between stations in different exchange areas for which there is made a separate charge not included in contracts with subscribers for exchange service.</P> <P> <E T="03">Unreasonable dialing delay.</E> For the same type of calls, dialing delay is “unreasonable” when the dialing delay experienced by the customer of a competing provider is greater than that experienced by a customer of the LEC providing dialing parity, or nondiscriminatory access to operator services or directory assistance.</P> <P> <E T="03">Virtual collocation. Virtual collocation</E> is an offering by an incumbent LEC that enables a requesting telecommunications carrier to:<PRTPAGE P="22"/> </P> <P>(1) Designate or specify equipment to be used for interconnection or access to unbundled network elements to be located within or upon an incumbent LEC's premises, and dedicated to such telecommunications carrier's use;</P> <P>(2) Use such equipment to interconnect with an incumbent LEC's network facilities for the transmission and routing of telephone exchange service, exchange access service, or both, or for access to an incumbent LEC's unbundled network elements for the provision of a telecommunications service; and</P> <P>(3) Electronically monitor and control its communications channels terminating in such equipment.</P> <CITA>[61 FR 45619, Aug. 29, 1996, as amended at 61 FR 47348, Sept. 6, 1996; 64 FR 23241, Apr. 30, 1999; 65 FR 1344, Jan. 10, 2000; 65 FR 2550, Jan. 18, 2000; 65 FR 54438, Sept. 8, 2000]</CITA> <EFFDNOT> <HD SOURCE="HED">Effective Date Note:</HD> <P>At 65 FR 54438, Sept. 8, 2000, § 51.5 was amended by revising the definition of “premises” and by adding in alphabetical order a definition of “day”, effective Oct. 10, 2000. For the convenience of the user, the superseded text is set forth as follows.</P> <SUPERSED> <SECTION> <SECTNO>§ 51.5</SECTNO> <SUBJECT>Terms and definitions.</SUBJECT> <P>Terms used in this part have the following meanings:</P> <STARS/> <P> <E T="03">Premises. Premises</E> refers to an incumbent LEC's central offices and serving wire centers, as well as all buildings or similar structures owned or leased by an incumbent LEC that house its network facilities, and all structures that house incumbent LEC facilities on public rights-of-way, including but not limited to vaults containing loop concentrators or similar structures.</P> <STARS/> </SECTION> <SUBPART> <HD SOURCE="HED">Subpart B—Telecommunications Carriers</HD> <SECTION> <SECTNO>§ 51.100</SECTNO> <SUBJECT>General duty.</SUBJECT> <P>(a) Each telecommunications carrier has the duty:</P> <P>(1) To interconnect directly or indirectly with the facilities and equipment of other telecommunications carriers; and</P> <P>(2) To not install network features, functions, or capabilities that do not comply with the guidelines and standards as provided in the Commission's rules or section 255 or 256 of the Act.</P> <P>(b) A telecommunication carrier that has interconnected or gained access under sections 251(a)(1), 251(c)(2), or 251(c)(3) of the Act, may offer information services through the same arrangement, so long as it is offering telecommunications services through the same arrangement as well.</P> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart C—Obligations of All Local Exchange Carriers</HD> <SECTION> <SECTNO>§ 51.201</SECTNO> <SUBJECT>Resale.</SUBJECT> <P>The rules governing resale of services by an incumbent LEC are set forth in subpart G of this part.</P> </SECTION> <SECTION> <SECTNO>§ 51.203</SECTNO> <SUBJECT>Number portability.</SUBJECT> <P>The rules governing number portability are set forth in part 52, subpart C of this chapter.</P> </SECTION> <SECTION> <SECTNO>§ 51.205</SECTNO> <SUBJECT>Dialing parity: General.</SUBJECT> <P>A local exchange carrier (LEC) shall provide local and toll dialing parity to competing providers of telephone exchange service or telephone toll service, with no unreasonable dialing delays. Dialing parity shall be provided for all originating telecommunications services that require dialing to route a call.</P> <CITA>[61 FR 47349, Sept. 6, 1996]</CITA> </SECTION> <SECTION> <SECTNO>§ 51.207</SECTNO> <SUBJECT>Local dialing parity.</SUBJECT> <P>A LEC shall permit telephone exchange service customers within a local calling area to dial the same number of digits to make a local telephone call notwithstanding the identity of the customer's or the called party's telecommunications service provider.</P> <CITA>[61 FR 47349, Sept. 6, 1996]</CITA> </SECTION> <SECTION> <SECTNO>§ 51.209</SECTNO> <SUBJECT>Toll dialing parity.</SUBJECT> <P>(a) A LEC shall implement throughout each state in which it offers telephone exchange service intraLATA and interLATA toll dialing parity based on LATA boundaries. When a single LATA covers more than one state, the LEC shall use the implementation procedures that each state has approved for the LEC within that state's borders.<PRTPAGE P="23"/> </P> <P>(b) A LEC shall implement toll dialing parity through a presubscription process that permits a customer to select a carrier to which all designated calls on a customer's line will be routed automatically. LECs shall allow a customer to presubscribe, at a minimum, to one telecommunications carrier for all interLATA toll calls and to presubscribe to the same or to another telecommunications carrier for all intraLATA toll calls.</P> <P>(c) A LEC may not assign automatically a customer's intraLATA toll traffic to itself, to its subsidiaries or affiliates, to the customer's presubscribed interLATA or interstate toll carrier, or to any other carrier, except when, in a state that already has implemented intrastate, intraLATA toll dialing parity, the subscriber has selected the same presubscribed carrier for both intraLATA and interLATA toll calls.</P> <P>(d) Notwithstanding the requirements of paragraphs (a) and (b) of this section, states may require that toll dialing parity be based on state boundaries if it deems that the provision of intrastate and interstate toll dialing parity is procompetitive and otherwise in the public interest.</P> <CITA>[61 FR 47349, Sept. 6, 1996]</CITA> </SECTION> <SECTION> <SECTNO>§ 51.211</SECTNO> <SUBJECT>Toll dialing parity implementation schedule.</SUBJECT> <P>(a) A LEC that does not begin providing in-region, interLATA or in-region, interstate toll services in a state before February 8, 1999, must implement intraLATA and interLATA toll dialing parity throughout that state on February 8, 1999 or an earlier date as the state may determine, consistent with section 271(e)(2)(B) of the Communications Act of 1934, as amended, to be in the public interest.</P> <P>(b) A Bell Operating Company (BOC) that provides in-region, interLATA toll services in a state before February 8, 1999 shall provide intraLATA toll dialing parity throughout that state coincident with its provision of in-region, interLATA toll services.</P> <P>(c) A LEC that is not a BOC that begins providing in-region, interLATA or in-region, interstate toll services in a state before August 8, 1997, shall implement intraLATA and interLATA toll dialing parity throughout that state by August 8, 1997. If the LEC is unable to comply with the August 8, 1997 implementation deadline, the LEC must notify the Commission's Common Carrier Bureau by May 8, 1997. In the notification, the LEC must state its justification for noncompliance and must set forth the date by which it proposes to implement intraLATA and interLATA toll dialing parity.</P> <P>(d) A LEC that is not a BOC that begins providing in-region, interLATA or in-region, interstate toll services in a state on or after August 8, 1997, but before February 8, 1999 shall implement intraLATA and interLATA toll dialing parity throughout that state no later than the date on which it begins providing in-region, interLATA or in-region, interstate toll services.</P> <P>(e) Notwithstanding the requirements of paragraphs (a) through (d) of this section, a LEC shall implement toll dialing parity under a state order as described below:</P> <P>(1) If the state issued a dialing parity order by December 19, 1995 requiring a BOC to implement toll dialing parity in advance of the dates established by these rules, the BOC must implement toll dialing parity in accordance with the implementation dates established by the state order.</P> <P>(2) If the state issued a dialing parity order by August 8, 1996 requiring a LEC that is not a BOC to implement toll dialing parity in advance of the dates established by these rules, the LEC must implement toll dialing parity in accordance with the implementation dates established by the state order.</P> <P>(f) For LECs that are not Bell Operating Companies, the term <E T="03">in-region, interLATA toll service</E>, as used in this section and § 51.213, includes the provision of toll services outside of the LEC's study area.</P> <CITA>[61 FR 47349, Sept. 6, 1996]</CITA> </SECTION> <SECTION> <SECTNO>§ 51.213</SECTNO> <SUBJECT>Toll dialing parity implementation plans.</SUBJECT> <P>(a) A LEC must file a plan for providing intraLATA toll dialing parity throughout each state in which it offers telephone exchange service. A LEC cannot offer intraLATA toll dialing parity within a state until the implementation plan has been approved by <PRTPAGE P="24"/>the appropriate state commission or the Commission.</P> <P>(b) A LEC's implementation plan must include:</P> <P>(1) A proposal that explains how the LEC will offer intraLATA toll dialing parity for each exchange that the LEC operates in the state, in accordance with the provisions of this section, and a proposed time schedule for implementation; and</P> <P>(2) A proposal for timely notification of its subscribers and the methods it proposes to use to enable subscribers to affirmatively select an intraLATA toll service provider.</P> <P>(3) A LEC that is not a BOC also shall identify the LATA with which it will associate for the purposes of providing intraLATA and interLATA toll dialing parity under this subpart.</P> <P>(c) A LEC must file its implementation plan with the state commission for each state in which the LEC provides telephone exchange service, except that if a LEC determines that a state commission has elected not to review the plan or will not complete its review in sufficient time for the LEC to meet the toll dialing parity implementation deadlines in § 51.211, the LEC must file its plan with the Commission:</P> <P>(1) No later than 180 days before the date on which the LEC will begin providing toll dialing parity in the state, or no later than 180 days before February 8, 1999, whichever occurs first; or</P> <P>(2) For LECs that begin providing in-region, interLATA or in-region, interstate toll service (<E T="03">see</E> § 51.211(f)) before August 8, 1997, no later than December 5, 1996.</P> <P>(d) The Commission will release a public notice of any LEC implementation plan that is filed with the Commission under paragraph (c) of this section.</P> <P>(1) The LEC's plan will be deemed approved on the fifteenth day following release of the Commission's public notice unless, no later than the fourteenth day following the release of the Commission's public notice; either</P> <P>(i) The Common Carrier Bureau notifies the LEC that its plan will not be deemed approved on the fifteenth day; or</P> <P>(ii) An opposition to the plan is filed with the Commission and served on the LEC that filed the plan. Such an opposition must state specific reasons why the LEC's plan does not serve the public interest.</P> <P>(2) If one or more oppositions are filed, the LEC that filed the plan will have seven additional days (<E T="03">i.e.</E>, until no later than the twenty-first day following the release of the Commission's public notice) within which to file a reply to the opposition(s) and serve it on all parties that filed an opposition. The response shall:</P> <P>(i) Include information responsive to the allegations and concerns identified by the opposing party; and</P> <P>(ii) Identify possible revisions to the plan that will address the opposing party's concerns.</P> <P>(3) If a LEC's plan is opposed under paragraph (d)(1)(ii) of this section, the Common Carrier Bureau will act on the plan within ninety days of the date on which the Commission released its public notice. In the event the Bureau fails to act within ninety days, the plan will not go into effect pending Bureau action. If the plan is not opposed, but it did not go into effect on the fifteenth day following the release of the Commission's public notice (<E T="03">see</E> paragraph (d)(1)(i) of this section), and the Common Carrier Bureau fails to act on the plan within ninety days of the date on which the Commission released its public notice, the plan will be deemed approved without further Commission action on the ninety-first day after the date on which the Commission released its public notice of the plan's filing.</P> <CITA>[61 FR 47349, Sept. 6, 1996]</CITA> </SECTION> <SECTION> <SECTNO>§ 51.215</SECTNO> <SUBJECT>Dialing parity: Cost recovery.</SUBJECT> <P>(a) A LEC may recover the incremental costs necessary for the implementation of toll dialing parity. The LEC must recover such costs from all providers of telephone exchange service and telephone toll service in the area served by the LEC, including that LEC. The LEC shall use a cost recovery mechanism established by the state.</P> <P>(b) Any cost recovery mechanism for the provision of toll dialing parity pursuant to this section that a state adopts must not:</P> <P>(1) Give one service provider an appreciable cost advantage over another service provider, when competing for a <PRTPAGE P="25"/>specific subscriber (<E T="03">i.e.,</E> the recovery mechanism may not have a disparate effect on the incremental costs of competing service providers seeking to serve the same customer); or</P> <P>(2) Have a disparate effect on the ability of competing service providers to earn a normal return on their investment.</P> <CITA>[61 FR 47350, Sept. 6, 1996]</CITA> </SECTION> <SECTION> <SECTNO>§ 51.217</SECTNO> <SUBJECT>Nondiscriminatory access: Telephone numbers, operator services, directory assistance services, and directory listings.</SUBJECT> <P>(a) <E T="03">Definitions.</E> As used in this section, the following definitions apply:</P> <P>(1) <E T="03">Competing provider.</E> A “competing provider” is a provider of telephone exchange or telephone toll services that seeks nondiscriminatory access from a local exchange carrier (LEC) in that LEC's service area.</P> <P>(2) <E T="03">Nondiscriminatory access.</E> “Nondiscriminatory access” refers to access to telephone numbers, operator services, directory assistance and directory listings that is at least equal to the access that the providing local exchange carrier (LEC) itself receives. Nondiscriminatory access includes, but is not limited to:</P> <P>(i) Nondiscrimination between and among carriers in the rates, terms, and conditions of the access provided; and</P> <P>(ii) The ability of the competing provider to obtain access that is at least equal in quality to that of the providing LEC.</P> <P>(3) <E T="03">Providing local exchange carrier</E> (LEC). A “providing local exchange carrier” is a local exchange carrier (LEC) that is required to permit nondiscriminatory access to a competing provider.</P> <P>(b) <E T="03">General rule.</E> A local exchange carrier (LEC) that provides operator services, directory assistance services or directory listings to its customers, or provides telephone numbers, shall permit competing providers of telephone exchange service or telephone toll service to have nondiscriminatory access to that service or feature, with no unreasonable dialing delays.</P> <P>(c) <E T="03">Specific requirements.</E> A LEC subject to paragraph (b) of this section must also comply with the following requirements:</P> <P>(1) <E T="03">Telephone numbers.</E> A LEC shall permit competing providers to have access to telephone numbers that is identical to the access that the LEC provides to itself.</P> <P>(2) <E T="03">Operator services.</E> A LEC must permit telephone service customers to connect to the operator services offered by that customer's chosen local service provider by dialing “0,” or “0” plus the desired telephone number, regardless of the identity of the customer's local telephone service provider.</P> <P>(3) <E T="03">Directory assistance services and directory listings</E>—(i) <E T="03">Access to directory assistance.</E> A LEC shall permit competing providers to have access to its directory assistance services, including directory assistance databases, so that any customer of a competing provider can obtain directory listings, except as provided in paragraph (c)(3)(iv) of this section, on a nondiscriminatory basis, notwithstanding the identity of the customer's local service provider, or the identity of the provider for the customer whose listing is requested. A LEC must supply access to directory assistance in the manner specified by the competing provider, including transfer of the LECs’ directory assistance databases in readily accessible magnetic tape, electronic or other convenient format, as provided in paragraph (c)(3)(iii) of this section. Updates to the directory assistance database shall be made in the same format as the initial transfer (unless the requesting LEC requests otherwise), and shall be performed in a timely manner, taking no longer than those made to the providing LEC's own database. A LEC shall accept the listings of those customers served by competing providers for inclusion in its directory assistance/operator services databases.</P> <P>(ii) <E T="03">Access to directory listings.</E> A LEC that compiles directory listings shall share directory listings with competing providers in the manner specified by the competing provider, including readily accessible tape or electronic formats, as provided in paragraph (c)(3)(iii) of this section. Such data shall be provided in a timely fashion.</P> <P>(iii) <E T="03">Format.</E> A LEC shall provide access to its directory assistance services, including directory assistance <PRTPAGE P="26"/>databases, and to its directory listings in any format the competing provider specifies, if the LEC's internal systems can accommodate that format.</P> <P>(A) If a LEC's internal systems do not permit it provide directory assistance or directory listings in the format the specified by the competing provider, the LEC shall:</P> <P>(<E T="03">1</E>) Within thirty days of receiving the request, inform the competing provider that the requested format cannot be accommodated and tell the requesting provider which formats can be accommodated; and</P> <P>(<E T="03">2</E>) Provide the requested directory assistance or directory listings in the format the competing provider chooses from among the available formats.</P> <P>(B) [Reserved]</P> <P>(iv) <E T="03">Unlisted numbers.</E> A LEC shall not provide access to unlisted telephone numbers, or other information that its customer has asked the LEC not to make available, with the exception of customer name and address. The LEC shall ensure that access is permitted to the same directory information, including customer name and address, that is available to its own directory assistance customers.</P> <P>(v) <E T="03">Adjuncts to services.</E> Operator services and directory assistance services must be made available to competing providers in their entirety, including access to any adjunct features (<E T="03">e.g.,</E> rating tables or customer information databases) necessary to allow competing providers full use of these services.</P> <P>(d) <E T="03">Branding of operator services and directory assistance services.</E> The refusal of a providing local exchange carrier (LEC) to comply with the reasonable request of a competing provider that the providing LEC rebrand its operator services and directory assistance, or remove its brand from such services, creates a presumption that the providing LEC is unlawfully restricting access to its operator services and directory assistance. The providing LEC can rebut this presumption by demonstrating that it lacks the capability to comply with the competing provider's request.</P> <P>(e) <E T="03">Disputes</E>—(1) <E T="03">Disputes involving nondiscriminatory access.</E> In disputes involving nondiscriminatory access to operator services, directory assistance services, or directory listings, a providing LEC shall bear the burden of demonstrating with specificity:</P> <P>(i) That it is permitting nondiscriminatory access, and</P> <P>(ii) That any disparity in access is not caused by factors within its control. “Factors within its control” include, but are not limited to, physical facilities, staffing, the ordering of supplies or equipment, and maintenance.</P> <P>(2) <E T="03">Disputes involving unreasonable dialing delay.</E> In disputes between providing local exchange carriers (LECs) and competing providers involving unreasonable dialing delay in the provision of access to operator services and directory assistance, the burden of proof is on the providing LEC to demonstrate with specificity that it is processing the calls of the competing provider's customers on terms equal to that of similar calls from the providing LEC's own customers.</P> <CITA>[61 FR 47350, Sept. 6, 1996, as amended at 64 FR 51911, Sept. 27, 1999]</CITA> <EFFDNOT> <HD SOURCE="HED">Effective Date Note:</HD> <P>At 64 FR 51911, Sept. 27, 1999, § 51.217 was amended by revising paragraph (c)(3). This paragraph contains information collection and recordkeeping requirements and will not become effective until approval has been given by the Office of Management and Budget. </P> </EFFDNOT> </SECTION> <SECTION> <SECTNO>§ 51.219</SECTNO> <SUBJECT>Access to rights of way.</SUBJECT> <P>The rules governing access to rights of way are set forth in part 1, subpart J of this chapter.</P> </SECTION> <SECTION> <SECTNO>§ 51.221</SECTNO> <SUBJECT>Reciprocal compensation.</SUBJECT> <P>The rules governing reciprocal compensation are set forth in subpart H of this part.</P> </SECTION> <SECTION> <SECTNO>§ 51.223</SECTNO> <SUBJECT>Application of additional requirements.</SUBJECT> <P>(a) A state may not impose the obligations set forth in section 251(c) of the Act on a LEC that is not classified as an incumbent LEC as defined in section 251(h)(1) of the Act, unless the Commission issues an order declaring that such LECs or classes or categories of LECs should be treated as incumbent LECs.</P> <P>(b) A state commission, or any other interested party, may request that the Commission issue an order declaring that a particular LEC be treated as an <PRTPAGE P="27"/>incumbent LEC, or that a class or category of LECs be treated as incumbent LECs, pursuant to section 251(h)(2) of the Act.</P> </SECTION> <SECTION> <SECTNO>§ 51.230</SECTNO> <SUBJECT>Presumption of acceptability for deployment of an advanced services loop technology.</SUBJECT> <P>(a) An advanced services loop technology is presumed acceptable for deployment under any one of the following circumstances, where the technology:</P> <P>(1) Complies with existing industry standards; or</P> <P>(2) Is approved by an industry standards body, the Commission, or any state commission; or</P> <P>(3) Has been successfully deployed by any carrier without significantly degrading the performance of other services.</P> <P>(b) An incumbent LEC may not deny a carrier's request to deploy a technology that is presumed acceptable for deployment unless the incumbent LEC demonstrates to the relevant state commission that deployment of the particular technology will significantly degrade the performance of other advanced services or traditional voiceband services.</P> <P>(c) Where a carrier seeks to establish that deployment of a technology falls within the presumption of acceptability under paragraph (a)(3) of this section, the burden is on the requesting carrier to demonstrate to the state commission that its proposed deployment meets the threshold for a presumption of acceptability and will not, in fact, significantly degrade the performance of other advanced services or traditional voice band services. Upon a successful demonstration by the requesting carrier before a particular state commission, the deployed technology shall be presumed acceptable for deployment in other areas.</P> <CITA>[65 FR 1345, Jan. 10, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 51.231</SECTNO> <SUBJECT>Provision of information on advanced services deployment.</SUBJECT> <P>(a) An incumbent LEC must provide to requesting carriers that seek access to a loop or high frequency portion of the loop to provide advanced services:</P> <P>(1) Uses in determining which services can be deployed; and information with respect to the spectrum management procedures and policies that the incumbent LEC.</P> <P>(2) Information with respect to the rejection of the requesting carrier's provision of advanced services, together with the specific reason for the rejection; and</P> <P>(3) Information with respect to the number of loops using advanced services technology within the binder and type of technology deployed on those loops.</P> <P>(b) A requesting carrier that seeks access to a loop or a high frequency portion of a loop to provide advanced services must provide to the incumbent LEC information on the type of technology that the requesting carrier seeks to deploy.</P> <P>(1) Where the requesting carrier asserts that the technology it seeks to deploy fits within a generic power spectral density (PSD) mask, it also must provide Spectrum Class information for the technology.</P> <P>(2) Where a requesting carrier relies on a calculation-based approach to support deployment of a particular technology, it must provide the incumbent LEC with information on the speed and power at which the signal will be transmitted.</P> <P>(c) The requesting carrier also must provide the information required under paragraph (b) of this section when notifying the incumbent LEC of any proposed change in advanced services technology that the carrier uses on the loop.</P> <CITA>[65 FR 1345, Jan. 10, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 51.232</SECTNO> <SUBJECT>Binder group management.</SUBJECT> <P>(a) With the exception of loops on which a known disturber is deployed, the incumbent LEC shall be prohibited from designating, segregating or reserving particular loops or binder groups for use solely by any particular advanced services loop technology.</P> <P>(b) Any party seeking designation of a technology as a known disturber should file a petition for declaratory ruling with the Commission seeking such designation, pursuant to § 1.2 of this chapter.</P> <CITA>[65 FR 1346, Jan. 10, 2000]</CITA> </SECTION> <SECTION> <PRTPAGE P="28"/> <SECTNO>§ 51.233</SECTNO> <SUBJECT>Significant degradation of services caused by deployment of advanced services.</SUBJECT> <P>(a) Where a carrier claims that a deployed advanced service is significantly degrading the performance of other advanced services or traditional voiceband services, that carrier must notify the deploying carrier and allow the deploying carrier a reasonable opportunity to correct the problem. Where the carrier whose services are being degraded does not know the precise cause of the degradation, it must notify each carrier that may have caused or contributed to the degradation.</P> <P>(b) Where the degradation asserted under paragraph (a) of this section remains unresolved by the deploying carrier(s) after a reasonable opportunity to correct the problem, the carrier whose services are being degraded must establish before the relevant state commission that a particular technology deployment is causing the significant degradation.</P> <P>(c) Any claims of network harm presented to the deploying carrier(s) or, if subsequently necessary, the relevant state commission, must be supported with specific and verifiable information.</P> <P>(d) Where a carrier demonstrates that a deployed technology is significantly degrading the performance of other advanced services or traditional voice band services, the carrier deploying the technology shall discontinue deployment of that technology and migrate its customers to technologies that will not significantly degrade the performance of other such services.</P> <P>(e) Where the only degraded service itself is a known disturber, and the newly deployed technology satisfies at least one of the criteria for a presumption that it is acceptable for deployment under § 51.230, the degraded service shall not prevail against the newly-deployed technology.</P> <CITA>[65 FR 1346, Jan. 10, 2000]</CITA> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart D—Additional Obligations of Incumbent Local Exchange Carriers</HD> <SECTION> <SECTNO>§ 51.301</SECTNO> <SUBJECT>Duty to negotiate.</SUBJECT> <P>(a) An incumbent LEC shall negotiate in good faith the terms and conditions of agreements to fulfill the duties established by sections 251 (b) and (c) of the Act.</P> <P>(b) A requesting telecommunications carrier shall negotiate in good faith the terms and conditions of agreements described in paragraph (a) of this section.</P> <P>(c) If proven to the Commission, an appropriate state commission, or a court of competent jurisdiction, the following actions or practices, among others, violate the duty to negotiate in good faith:</P> <P>(1) Demanding that another party sign a nondisclosure agreement that precludes such party from providing information requested by the Commission, or a state commission, or in support of a request for arbitration under section 252(b)(2)(B) of the Act;</P> <P>(2) Demanding that a requesting telecommunications carrier attest that an agreement complies with all provisions of the Act, federal regulations, or state law;</P> <P>(3) Refusing to include in an arbitrated or negotiated agreement a provision that permits the agreement to be amended in the future to take into account changes in Commission or state rules;</P> <P>(4) Conditioning negotiation on a requesting telecommunications carrier first obtaining state certifications;</P> <P>(5) Intentionally misleading or coercing another party into reaching an agreement that it would not otherwise have made;</P> <P>(6) Intentionally obstructing or delaying negotiations or resolutions of disputes;</P> <P>(7) Refusing throughout the negotiation process to designate a representative with authority to make binding representations, if such refusal significantly delays resolution of issues; and<PRTPAGE P="29"/> </P> <P>(8) Refusing to provide information necessary to reach agreement. Such refusal includes, but is not limited to:</P> <P>(i) Refusal by an incumbent LEC to furnish information about its network that a requesting telecommunications carrier reasonably requires to identify the network elements that it needs in order to serve a particular customer; and</P> <P>(ii) Refusal by a requesting telecommunications carrier to furnish cost data that would be relevant to setting rates if the parties were in arbitration.</P> </SECTION> <SECTION> <SECTNO>§ 51.303</SECTNO> <SUBJECT>Preexisting agreements.</SUBJECT> <P>(a) All interconnection agreements between an incumbent LEC and a telecommunications carrier, including those negotiated before February 8, 1996, shall be submitted by the parties to the appropriate state commission for approval pursuant to section 252(e) of the Act.</P> <P>(b) Interconnection agreements negotiated before February 8, 1996, between Class A carriers, as defined by § 32.11(a)(1) of this chapter, shall be filed by the parties with the appropriate state commission no later than June 30, 1997, or such earlier date as the state commission may require.</P> <P>(c) If a state commission approves a preexisting agreement, it shall be made available to other parties in accordance with section 252(i) of the Act and § 51.809 of this part. A state commission may reject a preexisting agreement on the grounds that it is inconsistent with the public interest, or for other reasons set forth in section 252(e)(2)(A) of the Act.</P> </SECTION> <SECTION> <SECTNO>§ 51.305</SECTNO> <SUBJECT>Interconnection.</SUBJECT> <P>(a) An incumbent LEC shall provide, for the facilities and equipment of any requesting telecommunications carrier, interconnection with the incumbent LEC's network:</P> <P>(1) For the transmission and routing of telephone exchange traffic, exchange access traffic, or both;</P> <P>(2) At any technically feasible point within the incumbent LEC's network including, at a minimum:</P> <P>(i) The line-side of a local switch;</P> <P>(ii) The trunk-side of a local switch;</P> <P>(iii) The trunk interconnection points for a tandem switch;</P> <P>(iv) Central office cross-connect points;</P> <P>(v) Out-of-band signaling transfer points necessary to exchange traffic at these points and access call-related databases; and</P> <P>(vi) The points of access to unbundled network elements as described in § 51.319;</P> <P>(3) That is at a level of quality that is equal to that which the incumbent LEC provides itself, a subsidiary, an affiliate, or any other party, except as provided in paragraph (4) of this section. At a minimum, this requires an incumbent LEC to design interconnection facilities to meet the same technical criteria and service standards that are used within the incumbent LEC's network. This obligation is not limited to a consideration of service quality as perceived by end users, and includes, but is not limited to, service quality as perceived by the requesting telecommunications carrier;</P> <P>(4) That, if so requested by a telecommunications carrier and to the extent technically feasible, is superior in quality to that provided by the incumbent LEC to itself or to any subsidiary, affiliate, or any other party to which the incumbent LEC provides interconnection. Nothing in this section prohibits an incumbent LEC from providing interconnection that is lesser in quality at the sole request of the requesting telecommunications carrier; and</P> <P>(5) On terms and conditions that are just, reasonable, and nondiscriminatory in accordance with the terms and conditions of any agreement, the requirements of sections 251 and 252 of the Act, and the Commission's rules including, but not limited to, offering such terms and conditions equally to all requesting telecommunications carriers, and offering such terms and conditions that are no less favorable than the terms and conditions upon which the incumbent LEC provides such interconnection to itself. This includes, but is not limited to, the time within which the incumbent LEC provides such interconnection.</P> <P>(b) A carrier that requests interconnection solely for the purpose of originating or terminating its interexchange traffic on an incumbent <PRTPAGE P="30"/>LEC's network and not for the purpose of providing to others telephone exchange service, exchange access service, or both, is not entitled to receive interconnection pursuant to section 251(c)(2) of the Act.</P> <P>(c) Previous successful interconnection at a particular point in a network, using particular facilities, constitutes substantial evidence that interconnection is technically feasible at that point, or at substantially similar points, in networks employing substantially similar facilities. Adherence to the same interface or protocol standards shall constitute evidence of the substantial similarity of network facilities.</P> <P>(d) Previous successful interconnection at a particular point in a network at a particular level of quality constitutes substantial evidence that interconnection is technically feasible at that point, or at substantially similar points, at that level of quality.</P> <P>(e) An incumbent LEC that denies a request for interconnection at a particular point must prove to the state commission that interconnection at that point is not technically feasible.</P> <P>(f) If technically feasible, an incumbent LEC shall provide two-way trunking upon request.</P> <P>(g) An incumbent LEC shall provide to a requesting telecommunications carrier technical information about the incumbent LEC's network facilities sufficient to allow the requesting carrier to achieve interconnection consistent with the requirements of this section.</P> <CITA>[61 FR 45619, Aug. 29, 1996, as amended at 61 FR 47351, Sept. 6, 1996]</CITA> </SECTION> <SECTION> <SECTNO>§ 51.307</SECTNO> <SUBJECT>Duty to provide access on an unbundled basis to network elements.</SUBJECT> <P>(a) An incumbent LEC shall provide, to a requesting telecommunications carrier for the provision of a telecommunications service, nondiscriminatory access to network elements on an unbundled basis at any technically feasible point on terms and conditions that are just, reasonable, and nondiscriminatory in accordance with the terms and conditions of any agreement, the requirements of sections 251 and 252 of the Act, and the Commission's rules.</P> <P>(b) The duty to provide access to unbundled network elements pursuant to section 251(c)(3) of the Act includes a duty to provide a connection to an unbundled network element independent of any duty to provide interconnection pursuant to this part and section 251(c)(2) of the Act.</P> <P>(c) An incumbent LEC shall provide a requesting telecommunications carrier access to an unbundled network element, along with all of the unbundled network element's features, functions, and capabilities, in a manner that allows the requesting telecommunications carrier to provide any telecommunications service that can be offered by means of that network element.</P> <P>(d) An incumbent LEC shall provide a requesting telecommunications carrier access to the facility or functionality of a requested network element separate from access to the facility or functionality of other network elements, for a separate charge.</P> <P>(e) An incumbent LEC shall provide to a requesting telecommunications carrier technical information about the incumbent LEC's network facilities sufficient to allow the requesting carrier to achieve access to unbundled network elements consistent with the requirements of this section.</P> <CITA>[61 FR 45619, Aug. 29, 1996, as amended at 61 FR 47351, Sept. 6, 1996]</CITA> </SECTION> <SECTION> <SECTNO>§ 51.309</SECTNO> <SUBJECT>Use of unbundled network elements.</SUBJECT> <P>(a) An incumbent LEC shall not impose limitations, restrictions, or requirements on requests for, or the use of, unbundled network elements that would impair the ability of a requesting telecommunications carrier to offer a telecommunications service in the manner the requesting telecommunications carrier intends.</P> <P>(b) A telecommunications carrier purchasing access to an unbundled network element may use such network element to provide exchange access services to itself in order to provide interexchange services to subscribers.</P> <P>(c) A telecommunications carrier purchasing access to an unbundled network facility is entitled to exclusive <PRTPAGE P="31"/>use of that facility for a period of time, or when purchasing access to a feature, function, or capability of a facility, a telecommunications carrier is entitled to use of that feature, function, or capability for a period of time. A telecommunications carrier's purchase of access to an unbundled network element does not relieve the incumbent LEC of the duty to maintain, repair, or replace the unbundled network element.</P> </SECTION> <SECTION> <SECTNO>§ 51.311</SECTNO> <SUBJECT>Nondiscriminatory access to unbundled network elements.</SUBJECT> <P>(a) The quality of an unbundled network element, as well as the quality of the access to the unbundled network element, that an incumbent LEC provides to a requesting telecommunications carrier shall be the same for all telecommunications carriers requesting access to that network element, except as provided in paragraph (c) of this section.</P> <P>(b) Except as provided in paragraph (c) of this section, to the extent technically feasible, the quality of an unbundled network element, as well as the quality of the access to such unbundled network element, that an incumbent LEC provides to a requesting telecommunications carrier shall be at least equal in quality to that which the incumbent LEC provides to itself. If an incumbent LEC fails to meet this requirement, the incumbent LEC must prove to the state commission that it is not technically feasible to provide the requested unbundled network element, or to provide access to the requested unbundled network element, at a level of quality that is equal to that which the incumbent LEC provides to itself.</P> <P>(c) To the extent technically feasible, the quality of an unbundled network element, as well as the quality of the access to such unbundled network element, that an incumbent LEC provides to a requesting telecommunications carrier shall, upon request, be superior in quality to that which the incumbent LEC provides to itself. If an incumbent LEC fails to meet this requirement, the incumbent LEC must prove to the state commission that it is not technically feasible to provide the requested unbundled network element or access to such unbundled network element at the requested level of quality that is superior to that which the incumbent LEC provides to itself. Nothing in this section prohibits an incumbent LEC from providing interconnection that is lesser in quality at the sole request of the requesting telecommunications carrier.</P> <P>(d) Previous successful access to an unbundled element at a particular point in a network, using particular facilities, is substantial evidence that access is technically feasible at that point, or at substantially similar points, in networks employing substantially similar facilities. Adherence to the same interface or protocol standards shall constitute evidence of the substantial similarity of network facilities.</P> <P>(e) Previous successful provision of access to an unbundled element at a particular point in a network at a particular level of quality is substantial evidence that access is technically feasible at that point, or at substantially similar points, at that level of quality.</P> </SECTION> <SECTION> <SECTNO>§ 51.313</SECTNO> <SUBJECT>Just, reasonable and nondiscriminatory terms and conditions for the provision of unbundled network elements.</SUBJECT> <P>(a) The terms and conditions pursuant to which an incumbent LEC provides access to unbundled network elements shall be offered equally to all requesting telecommunications carriers.</P> <P>(b) Where applicable, the terms and conditions pursuant to which an incumbent LEC offers to provide access to unbundled network elements, including but not limited to, the time within which the incumbent LEC provisions such access to unbundled network elements, shall, at a minimum, be no less favorable to the requesting carrier than the terms and conditions under which the incumbent LEC provides such elements to itself.</P> <P>(c) An incumbent LEC must provide a carrier purchasing access to unbundled network elements with the pre-ordering, ordering, provisioning, maintenance and repair, and billing functions of the incumbent LEC's operations support systems.</P> </SECTION> <SECTION> <PRTPAGE P="32"/> <SECTNO>§ 51.315</SECTNO> <SUBJECT>Combination of unbundled network elements.</SUBJECT> <P>(a) An incumbent LEC shall provide unbundled network elements in a manner that allows requesting telecommunications carriers to combine such network elements in order to provide a telecommunications service.</P> <P>(b) Except upon request, an incumbent LEC shall not separate requested network elements that the incumbent LEC currently combines.</P> <P>(c) Upon request, an incumbent LEC shall perform the functions necessary to combine unbundled network elements in any manner, even if those elements are not ordinarily combined in the incumbent LEC's network, provided that such combination is:</P> <P>(1) Technically feasible; and</P> <P>(2) Would not impair the ability of other carriers to obtain access to unbundled network elements or to interconnect with the incumbent LEC's network.</P> <P>(d) Upon request, an incumbent LEC shall perform the functions necessary to combine unbundled network elements with elements possessed by the requesting telecommunications carrier in any technically feasible manner.</P> <P>(e) An incumbent LEC that denies a request to combine elements pursuant to paragraph (c)(1) or paragraph (d) of this section must prove to the state commission that the requested combination is not technically feasible.</P> <P>(f) An incumbent LEC that denies a request to combine elements pursuant to paragraph (c)(2) of this section must prove to the state commission that the requested combination would impair the ability of other carriers to obtain access to unbundled network elements or to interconnect with the incumbent LEC's network.</P> </SECTION> <SECTION> <SECTNO>§ 51.317</SECTNO> <SUBJECT>Standards for requiring the unbundling of network elements.</SUBJECT> <P>(a) <E T="03">Proprietary network elements. </E>A network element shall be considered to be proprietary if an incumbent LEC can demonstrate that it has invested resources to develop proprietary information or functionalities that are protected by patent, copyright or trade secret law. The Commission shall undertake the following analysis to determine whether a proprietary network element should be made available for purposes of section 251(c)(3) of the Act:</P> <P>(1) Determine whether access to the proprietary network element is “necessary.” A network element is “necessary” if, taking into consideration the availability of alternative elements outside the incumbent LEC's network, including self-provisioning by a requesting carrier or acquiring an alternative from a third-party supplier, lack of access to the network element precludes a requesting telecommunications carrier from providing the services that it seeks to offer. If access is “necessary,” then, subject to any consideration of the factors set forth under paragraph (c) of this section, the Commission may require the unbundling of such proprietary network element.</P> <P>(2) In the event that such access is not “necessary,” the Commission may require unbundling subject to any consideration of the factors set forth under paragraph (c) of this section if it is determined that:</P> <P>(i) The incumbent LEC has implemented only a minor modification to the network element in order to qualify for proprietary treatment;</P> <P>(ii) The information or functionality that is proprietary in nature does not differentiate the incumbent LEC's services from the requesting carrier's services; or</P> <P>(iii) Lack of access to such element would jeopardize the goals of the 1996 Act.</P> <P>(b) <E T="03">Non-proprietary network elements.</E> The Commission shall undertake the following analysis to determine whether a non-proprietary network element should be made available for purposes of section 251(c)(3) of the Act:</P> <P>(1) Determine whether lack of access to a non-proprietary network element “impairs” a carrier's ability to provide the service it seeks to offer. A requesting carrier's ability to provide service is “impaired” if, taking into consideration the availability of alternative elements outside the incumbent LEC's network, including self-provisioning by a requesting carrier or acquiring an alternative from a third-party supplier, lack of access to that element materially diminishes a requesting carrier's ability to provide the services it seeks <PRTPAGE P="33"/>to offer. The Commission will consider the totality of the circumstances to determine whether an alternative to the incumbent LEC's network element is available in such a manner that a requesting carrier can provide service using the alternative. If the Commission determines that lack of access to an element “impairs” a requesting carrier's ability to provide service, it may require the unbundling of that element, subject to any consideration of the factors set forth under section 51.317(c).</P> <P>(2) In considering whether lack of access to a network element materially diminishes a requesting carrier's ability to provide service, the Commission shall consider the extent to which alternatives in the market are available as a practical, economic, and operational matter. The Commission will rely upon the following factors to determine whether alternative network elements are available as a practical, economic, and operational matter:</P> <P>(i) Cost, including all costs that requesting carriers may incur when using the alternative element to provide the services it seeks to offer;</P> <P>(ii) Timeliness, including the time associated with entering a market as well as the time to expand service to more customers;</P> <P>(iii) Quality;</P> <P>(iv) Ubiquity, including whether the alternatives are available ubiquitously;</P> <P>(v) Impact on network operations.</P> <P>(3) In determining whether to require the unbundling of any network element under this rule, the Commission may also consider the following additional factors:</P> <P>(i) Whether unbundling of a network element promotes the rapid introduction of competition;</P> <P>(ii) Whether unbundling of a network element promotes facilities-based competition, investment, and innovation;</P> <P>(iii) Whether unbundling of a network element promotes reduced regulation;</P> <P>(iv) Whether unbundling of a network element provides certainty to requesting carriers regarding the availability of the element;</P> <P>(v) Whether unbundling of a network element is administratively practical to apply.</P> <P>(4) If an incumbent LEC is required to provide nondiscriminatory access to a network element in accordance with § 51.311 and section 251(c)(3) of the Act under § 51.319 of this section or any applicable Commission Order, no state commission shall have authority to determine that such access is not required. A state commission must comply with the standards set forth in this § 51.317 when considering whether to require the unbundling of additional network elements. With respect to any network element which a state commission has required to be unbundled under this § 51.317, the state commission retains the authority to subsequently determine, in accordance with the requirements of this rule, that such network element need no longer be unbundled.</P> <CITA>[65 FR 2551, Jan. 18, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 51.319</SECTNO> <SUBJECT>Specific unbundling requirements.</SUBJECT> <P>(a) <E T="03">Local loop and subloop.</E> An incumbent LEC shall provide nondiscriminatory access, in accordance with § 51.311 and section 251(c)(3) of the Act, to the local loop and subloop, including inside wiring owned by the incumbent LEC, on an unbundled basis to any requesting telecommunications carrier for the provision of a telecommunications service.</P> <P>(1) <E T="03">Local loop.</E> The local loop network element is defined as a transmission facility between a distribution frame (or its equivalent) in an incumbent LEC central office and the loop demarcation point at an end-user customer premises, including inside wire owned by the incumbent LEC. The local loop network element includes all features, functions, and capabilities of such transmission facility. Those features, functions, and capabilities include, but are not limited to, dark fiber, attached electronics (except those electronics used for the provision of advanced services, such as Digital Subscriber Line Access Multiplexers), and line conditioning. The local loop includes, but is not limited to, DS1, DS3, fiber, and other high capacity loops. The requirements in this section relating to dark fiber are not effective until May 17, 2000.<PRTPAGE P="34"/> </P> <P>(2) <E T="03">Subloop.</E> The subloop network element is defined as any portion of the loop that is technically feasible to access at terminals in the incumbent LEC's outside plant, including inside wire. An accessible terminal is any point on the loop where technicians can access the wire or fiber within the cable without removing a splice case to reach the wire or fiber within. Such points may include, but are not limited to, the pole or pedestal, the network interface device, the minimum point of entry, the single point of interconnection, the main distribution frame, the remote terminal, and the feeder/distribution interface. The requirements in this section relating to subloops and inside wire are not effective until May 17, 2000.</P> <P>(i) <E T="03">Inside wire.</E> Inside wire is defined as all loop plant owned by the incumbent LEC on end-user customer premises as far as the point of demarcation as defined in § 68.3 of this chapter, including the loop plant near the end-user customer premises. Carriers may access the inside wire subloop at any technically feasible point including, but not limited to, the network interface device, the minimum point of entry, the single point of interconnection, the pedestal, or the pole.</P> <P>(ii) <E T="03">Technical feasibility.</E> If parties are unable to reach agreement, pursuant to voluntary negotiations, as to whether it is technically feasible, or whether sufficient space is available, to unbundle the subloop at the point where a carrier requests, the incumbent LEC shall have the burden of demonstrating to the state, pursuant to state arbitration proceedings under section 252 of the Act, that there is not sufficient space available, or that it is not technically feasible, to unbundle the subloop at the point requested.</P> <P>(iii) <E T="03">Best practices.</E> Once one state has determined that it is technically feasible to unbundle subloops at a designated point, an incumbent LEC in any state shall have the burden of demonstrating, pursuant to state arbitration proceedings under section 252 of the Act, that it is not technically feasible, or that sufficient space is not available, to unbundle its own loops at such a point.</P> <P>(iv) <E T="03">Rules for collocation.</E> Access to the subloop is subject to the Commission's collocation rules at §§ 51.321 through 51.323.</P> <P>(v) <E T="03">Single point of interconnection.</E> The incumbent LEC shall provide a single point of interconnection at multi-unit premises that is suitable for use by multiple carriers. This obligation is in addition to the incumbent LEC's obligation to provide nondiscriminatory access to subloops at any technically feasible point. If parties are unable to negotiate terms and conditions regarding a single point of interconnection, issues in dispute, including compensation of the incumbent LEC under forward-looking pricing principles, shall be resolved under the dispute resolution processes in section 252 of the Act.</P> <P>(3) <E T="03">Line conditioning.</E> The incumbent LEC shall condition lines required to be unbundled under this section wherever a competitor requests, whether or not the incumbent LEC offers advanced services to the end-user customer on that loop.</P> <P>(i) Line conditioning is defined as the removal from the loop of any devices that may diminish the capability of the loop to deliver high-speed switched wireline telecommunications capability, including xDSL service. Such devices include, but are not limited to, bridge taps, low pass filters, and range extenders.</P> <P>(ii) Incumbent LECs shall recover the cost of line conditioning from the requesting telecommunications carrier in accordance with the Commission's forward-looking pricing principles promulgated pursuant to section 252(d)(1) of the Act.</P> <P>(iii) Incumbent LECs shall recover the cost of line conditioning from the requesting telecommunications carrier in compliance with rules governing nonrecurring costs in § 51.507 (e).</P> <P>(iv) In so far as it is technically feasible, the incumbent LEC shall test and report trouble for all the features, functions, and capabilities of conditioned lines, and may not restrict testing to voice-transmission only.</P> <P>(b) <E T="03">Network interface device. </E>An incumbent LEC shall provide nondiscriminatory access, in accordance with § 51.311 and section 251(c)(3) of the Act, to the network interface device on <PRTPAGE P="35"/>an unbundled basis to any requesting telecommunications carrier for the provision of a telecommunications service. The network interface device network element is defined as any means of interconnection of end-user customer premises wiring to the incumbent LEC's distribution plant, such as a cross connect device used for that purpose. An incumbent LEC shall permit a requesting telecommunications carrier to connect its own loop facilities to on-premises wiring through the incumbent LEC's network interface device, or at any other technically feasible point.</P> <P>(c) <E T="03">Switching capability. </E>An incumbent LEC shall provide nondiscriminatory access, in accordance with § 51.311 and section 251(c)(3) of the Act, to local circuit switching capability and local tandem switching capability on an unbundled basis, except as set forth in § 51.319(c)(2), to any requesting telecommunications carrier for the provision of a telecommunications service. An incumbent LEC shall be required to provide nondiscriminatory access in accordance with § 51.311 and section 251(c)(3) of the Act to packet switching capability on an unbundled basis to any requesting telecommunications carrier for the provision of a telecommunications service only in the limited circumstance described in § 51.319(c)(4).</P> <P>(1) <E T="03">Local circuit switching capability, including tandem switching capability. </E>The local circuit switching capability network element is defined as:</P> <P>(i) Line-side facilities, which include, but are not limited to, the connection between a loop termination at a main distribution frame and a switch line card;</P> <P>(ii) Trunk-side facilities, which include, but are not limited to, the connection between trunk termination at a trunk-side cross-connect panel and a switch trunk card; and</P> <P>(iii) All features, functions and capabilities of the switch, which include, but are not limited to:</P> <P>(A) The basic switching function of connecting lines to lines, lines to trunks, trunks to lines, and trunks to trunks, as well as the same basic capabilities made available to the incumbent LEC's customers, such as a telephone number, white page listing and dial tone, and</P> <P>(B) All other features that the switch is capable of providing, including but not limited to, customer calling, customer local area signaling service features, and Centrex, as well as any technically feasible customized routing functions provided by the switch.</P> <P>(2) Notwithstanding the incumbent LEC's general duty to unbundle local circuit switching, an incumbent LEC shall not be required to unbundle local circuit switching for requesting telecommunications carriers when the requesting telecommunications carrier serves end-users with four or more voice grade (DS0) equivalents or lines, provided that the incumbent LEC provides nondiscriminatory access to combinations of unbundled loops and transport (also known as the “Enhanced Extended Link”) throughout Density Zone 1, and the incumbent LEC's local circuit switches are located in:</P> <P>(i) The top 50 Metropolitan Statistical Areas as set forth in Appendix B of the Third Report and Order and Fourth Further Notice of Proposed Rulemaking in CC Docket No. 96-98, and</P> <P>(ii) In Density Zone 1, as defined in § 69.123 of this chapter on January 1, 1999.</P> <P>(3) <E T="03">Local tandem switching capability. </E>The tandem switching capability network element is defined as:</P> <P>(i) Trunk-connect facilities, which include, but are not limited to, the connection between trunk termination at a cross connect panel and switch trunk card;</P> <P>(ii) The basic switch trunk function of connecting trunks to trunks; and</P> <P>(iii) The functions that are centralized in tandem switches (as distinguished from separate end office switches), including but not limited, to call recording, the routing of calls to operator services, and signaling conversion features.</P> <P>(4) <E T="03">Packet switching capability. </E>(i) The packet switching capability network element is defined as the basic packet switching function of routing or forwarding packets, frames, cells or other data units based on address or other routing information contained in the packets, frames, cells or other data <PRTPAGE P="36"/>units, and the functions that are performed by Digital Subscriber Line Access Multiplexers, including but not limited to:</P> <P>(ii) The ability to terminate copper customer loops (which includes both a low band voice channel and a high-band data channel, or solely a data channel);</P> <P>(iii) The ability to forward the voice channels, if present, to a circuit switch or multiple circuit switches;</P> <P>(iv) The ability to extract data units from the data channels on the loops, and</P> <P>(v) The ability to combine data units from multiple loops onto one or more trunks connecting to a packet switch or packet switches.</P> <P>(5) An incumbent LEC shall be required to provide nondiscriminatory access to unbundled packet switching capability only where each of the following conditions are satisfied. The requirements in this section relating to packet switching are not effective until May 17, 2000.</P> <P>(i) The incumbent LEC has deployed digital loop carrier systems, including but not limited to, integrated digital loop carrier or universal digital loop carrier systems; or has deployed any other system in which fiber optic facilities replace copper facilities in the distribution section (<E T="03">e.g.</E>, end office to remote terminal, pedestal or environmentally controlled vault);</P> <P>(ii) There are no spare copper loops capable of supporting xDSL services the requesting carrier seeks to offer;</P> <P>(iii) The incumbent LEC has not permitted a requesting carrier to deploy a Digital Subscriber Line Access mulltiplexer in the remote terminal, pedestal or environmentally controlled vault or other interconnection point, nor has the requesting carrier obtained a virtual collocation arrangement at these subloop interconnection points as defined by paragraph (b) of this section; and</P> <P>(iv) The incumbent LEC has deployed packet switching capability for its own use.</P> <P>(d) <E T="03">Interoffice transmission facilities</E>. An incumbent LEC shall provide nondiscriminatory access, in accordance with § 51.311 and section 251(c)(3) of the Act, to interoffice transmission facilities on an unbundled basis to any requesting telecommunications carrier for the provision of a telecommunications service. The requirements in this section relating to dark fiber transport are not effective until May 17, 2000.</P> <P>(1) Interoffice transmission facility network elements include:</P> <P>(i) Dedicated transport, defined as incumbent LEC transmission facilities, including all technically feasible capacity-related services including, but not limited to, DS1, DS3 and OCn levels, dedicated to a particular customer or carrier, that provide telecommunications between wire centers owned by incumbent LECs or requesting telecommunications carriers, or between switches owned by incumbent LECs or requesting telecommunications carriers;</P> <P>(ii) Dark fiber transport, defined as incumbent LEC optical transmission facilities without attached multiplexing, aggregation or other electronics;</P> <P>(iii) Shared transport, defined as transmission facilities shared by more than one carrier, including the incumbent LEC, between end office switches, between end office switches and tandem switches, and between tandem switches, in the incumbent LEC network.</P> <P>(2) The incumbent LEC shall:</P> <P>(i) Provide a requesting telecommunications carrier exclusive use of interoffice transmission facilities dedicated to a particular customer or carrier, or use the features, functions, and capabilities of interoffice transmission facilities shared by more than one customer or carrier.</P> <P>(ii) Provide all technically feasible transmission facilities, features, functions, and capabilities that the requesting telecommunications carrier could use to provide telecommunications services;</P> <P>(iii) Permit, to the extent technically feasible, a requesting telecommunications carrier to connect such interoffice facilities to equipment designated by the requesting telecommunications carrier, including but not limited to, the requesting telecommunications carrier's collocated facilities; and<PRTPAGE P="37"/> </P> <P>(iv) Permit, to the extent technically feasible, a requesting telecommunications carrier to obtain the functionality provided by the incumbent LEC's digital cross-connect systems in the same manner that the incumbent LEC provides such functionality to interexchange carriers.</P> <P>(e) <E T="03">Signaling networks and call-related databases</E>. An incumbent LEC shall provide nondiscriminatory access, in accordance with § 51.311 and section 251(c)(3) of the Act, to signaling networks, call-related databases, and service management systems on an unbundled basis to any requesting telecommunications carrier for the provision of a telecommunications service.</P> <P>(1) <E T="03">Signaling networks</E>. Signaling networks include, but are not limited to, signaling links and signaling transfer points.</P> <P>(i) When a requesting telecommunications carrier purchases unbundled switching capability from an incumbent LEC, the incumbent LEC shall provide access from that switch in the same manner in which it obtains such access itself.</P> <P>(ii) An incumbent LEC shall provide a requesting telecommunications carrier with its own switching facilities access to the incumbent LEC's signaling network for each of the requesting telecommunications carrier's switches. This connection shall be made in the same manner as an incumbent LEC connects one of its own switches to a signaling transfer point.</P> <P>(2) <E T="03">Call-related databases</E>. Call-related databases are defined as databases, other than operations support systems, that are used in signaling networks for billing and collection, or the transmission, routing, or other provision of a telecommunications service.</P> <P>(i) For purposes of switch query and database response through a signaling network, an incumbent LEC shall provide access to its call-related databases, including but not limited to, the Calling Name Database, 911 Database, E911 Database, Line Information Database, Toll Free Calling Database, Advanced Intelligent Network Databases, and downstream number portability databases by means of physical access at the signaling transfer point linked to the unbundled databases. The requirements in this section relating to the Calling Name Database, 911 Database, and E911 Database are not effective until May 17, 2000.</P> <P>(ii) Notwithstanding the incumbent LEC's general duty to unbundle call-related databases, an incumbent LEC shall not be required to unbundle the services created in the AIN platform and architecture that qualify for proprietary treatment.</P> <P>(iii) An incumbent LEC shall allow a requesting telecommunications carrier that has purchased an incumbent LEC's local switching capability to use the incumbent LEC's service control point element in the same manner, and via the same signaling links, as the incumbent LEC itself.</P> <P>(iv) An incumbent LEC shall allow a requesting telecommunications carrier that has deployed its own switch, and has linked that switch to an incumbent LEC's signaling system, to gain access to the incumbent LEC's service control point in a manner that allows the requesting carrier to provide any call-related database-supported services to customers served by the requesting telecommunications carrier's switch.</P> <P>(v) An incumbent LEC shall provide a requesting telecommunications carrier with access to call-related databases in a manner that complies with section 222 of the Act.</P> <P>(3) <E T="03">Service management systems</E>:</P> <P>(i) A service management system is defined as a computer database or system not part of the public switched network that, among other things:</P> <P>(A) Interconnects to the service control point and sends to that service control point the information and call processing instructions needed for a network switch to process and complete a telephone call; and</P> <P>(B) Provides telecommunications carriers with the capability of entering and storing data regarding the processing and completing of a telephone call.</P> <P>(ii) An incumbent LEC shall provide a requesting telecommunications carrier with the information necessary to enter correctly, or format for entry, the information relevant for input into the incumbent LEC's service management system.<PRTPAGE P="38"/> </P> <P>(iii) An incumbent LEC shall provide a requesting telecommunications carrier the same access to design, create, test, and deploy Advanced Intelligent Network-based services at the service management system, through a service creation environment, that the incumbent LEC provides to itself.</P> <P>(iv) An incumbent LEC shall provide a requesting telecommunications carrier access to service management systems in a manner that complies with section 222 of the Act.</P> <P>(f) <E T="03">Operator services and directory assistance. </E>An incumbent LEC shall provide nondiscriminatory access in accordance with § 51.311 and section 251(c)(3) of the Act to operator services and directory assistance on an unbundled basis to any requesting telecommunications carrier for the provision of a telecommunications service only where the incumbent LEC does not provide the requesting telecommunications carrier with customized routing or a compatible signaling protocol. Operator services are any automatic or live assistance to a consumer to arrange for billing or completion, or both, of a telephone call. Directory assistance is a service that allows subscribers to retrieve telephone numbers of other subscribers.</P> <P>(g) <E T="03">Operations support systems.</E> An incumbent LEC shall provide nondiscriminatory access in accordance with § 51.311 and section 251(c)(3) of the Act to operations support systems on an unbundled basis to any requesting telecommunications carrier for the provision of a telecommunications service. Operations support system functions consist of pre-ordering, ordering, provisioning, maintenance and repair, and billing functions supported by an incumbent LEC's databases and information. An incumbent LEC, as part of its duty to provide access to the pre-ordering function, must provide the requesting carrier with nondiscriminatory access to the same detailed information about the loop that is available to the incumbent LEC. The requirements in this section relating to loop qualification information are not effective until May 17, 2000. </P> <P>(h) <E T="03">High frequency portion of the loop.</E> </P> <P>(1) The high frequency portion of the loop network element is defined as the frequency range above the voiceband on a copper loop facility that is being used to carry analog circuit-switched voiceband transmissions.</P> <P>(2) An incumbent LEC shall provide nondiscriminatory access in accordance with § 51.311 of these rules and section 251(c)(3) of the Act to the high frequency portion of a loop to any requesting telecommunications carrier for the provision of a telecommunications service conforming with § 51.230 of these rules.</P> <P>(3) An incumbent LEC shall only provide a requesting carrier with access to the high frequency portion of the loop if the incumbent LEC is providing, and continues to provide, analog circuit-switched voiceband services on the particular loop for which the requesting carrier seeks access.</P> <P>(4) <E T="03">Control of the loop and splitter functionality.</E> In situations where a requesting carrier is obtaining access to the high frequency portion of the loop, the incumbent LEC may maintain control over the loop and splitter equipment and functions, and shall provide to requesting carriers loop and splitter functionality that is compatible with any transmission technology that the requesting carrier seeks to deploy using the high frequency portion of the loop, as defined in this subsection, provided that such transmission technology is presumed to be deployable pursuant to § 51.230.</P> <P>(5) <E T="03">Loop conditioning.</E> (i) An incumbent LEC must condition loops to enable requesting carriers to access the high frequency portion of the loop spectrum, in accordance with §§ 51.319(a)(3), and 51.319(h)(1). If the incumbent LEC seeks compensation from the requesting carrier for line conditioning, the requesting carrier has the option of refusing, in whole, or in part, to have the line conditioned, and a requesting carrier's refusal of some or all aspects of line conditioning will not diminish its right of access to the high frequency portion of the loop.</P> <P>(ii) Where conditioning the loop will significantly degrade, as defined in § 51.233, the voiceband services that the incumbent LEC is currently providing over that loop, the incumbent LEC must either:<PRTPAGE P="39"/> </P> <P>(A) Locate another loop that has been or can be conditioned, migrate the incumbent LEC's voiceband service to that loop, and provide the requesting carrier with access to the high frequency portion of the alternative loop; or</P> <P>(B) Make a showing to the relevant state commission that the original loop cannot be conditioned without significantly degrading voiceband services on that loop, as defined in § 51.233, and that there is no adjacent or alternative loop available that can be conditioned or to which the customer's voiceband service can be moved to enable line sharing.</P> <P>(iii) If the relevant State commission concludes that a loop cannot be conditioned without significantly degrading the voiceband service, the incumbent LEC cannot then or subsequently condition that loop to provide advanced services to its own customers without first making available to any requesting carrier the high frequency portion of the newly-conditioned loop.</P> <P>(6) <E T="03">Digital loop carrier systems.</E> Incumbent LECs must provide to requesting carriers unbundled access to the high frequency portion of the loop at the remote terminal as well as the central office, pursuant to § 51.319(a)(2) and § 51.319(h)(1).</P> <P>(7) <E T="03">Maintenance, repair, and testing.</E> (i) Incumbent LECs must provide, on a nondiscriminatory basis, physical loop test access points to requesting carriers at the splitter, through a cross-connection to the competitor's collocation space, or through a standardized interface, such as an intermediate distribution frame or a test access server, for the purposes of loop testing, maintenance, and repair activities.</P> <P>(ii) An incumbent seeking to utilize an alternative physical access methodology may request approval to do so from the relevant state commission, but must show that the proposed alternative method is reasonable, nondiscriminatory, and will not disadvantage a requesting carrier's ability to perform loop or service testing, maintenance or repair.</P> <CITA>[65 FR 2551, Jan. 18, 2000; 65 FR 19334, Apr. 11, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 51.321</SECTNO> <SUBJECT>Methods of obtaining interconnection and access to unbundled elements under section 251 of the Act.</SUBJECT> <P>(a) Except as provided in paragraph (e) of this section, an incumbent LEC shall provide, on terms and conditions that are just, reasonable, and nondiscriminatory in accordance with the requirements of this part, any technically feasible method of obtaining interconnection or access to unbundled network elements at a particular point upon a request by a telecommunications carrier.</P> <P>(b) Technically feasible methods of obtaining interconnection or access to unbundled network elements include, but are not limited to:</P> <P>(1) Physical collocation and virtual collocation at the premises of an incumbent LEC; and</P> <P>(2) Meet point interconnection arrangements.</P> <P>(c) A previously successful method of obtaining interconnection or access to unbundled network elements at a particular premises or point on any incumbent LEC's network is substantial evidence that such method is technically feasible in the case of substantially similar network premises or points. A requesting telecommunications carrier seeking a particular collocation arrangement, either physical or virtual, is entitled to a presumption that such arrangement is technically feasible if any LEC has deployed such collocation arrangement in any incumbent LEC premises.</P> <P>(d) An incumbent LEC that denies a request for a particular method of obtaining interconnection or access to unbundled network elements on the incumbent LEC's network must prove to the state commission that the requested method of obtaining interconnection or access to unbundled network elements at that point is not technically feasible.</P> <P>(e) An incumbent LEC shall not be required to provide for physical collocation of equipment necessary for interconnection or access to unbundled network elements at the incumbent LEC's premises if it demonstrates to the state commission that physical collocation is not practical for technical reasons or because of space limitations. <PRTPAGE P="40"/>In such cases, the incumbent LEC shall be required to provide virtual collocation, except at points where the incumbent LEC proves to the state commission that virtual collocation is not technically feasible. If virtual collocation is not technically feasible, the incumbent LEC shall provide other methods of interconnection and access to unbundled network elements to the extent technically feasible.</P> <P>(f) An incumbent LEC shall submit to the state commission, subject to any protective order as the state commission may deem necessary, detailed floor plans or diagrams of any premises where the incumbent LEC claims that physical collocation is not practical because of space limitations. These floor plans or diagrams must show what space, if any, the incumbent LEC or any of its affiliates has reserved for future use, and must describe in detail the specific future uses for which the space has been reserved and the length of time for each reservation. An incumbent LEC that contends space for physical collocation is not available in an incumbent LEC premises must also allow the requesting carrier to tour the entire premises in question, not only the area in which space was denied, without charge, within ten days of the receipt of the incumbent's denial of space. An incumbent LEC must allow a requesting telecommunications carrier reasonable access to its selected collocation space during construction.</P> <P>(g) An incumbent LEC that is classified as a Class A company under § 32.11 of this chapter and that is not a National Exchange Carrier Association interstate tariff participant as provided in part 69, subpart G, shall continue to provide expanded interconnection service pursuant to interstate tariff in accordance with §§ 64.1401, 64.1402, 69.121 of this chapter, and the Commission's other requirements.</P> <P>(h) Upon request, an incumbent LEC must submit to the requesting carrier within ten days of the submission of the request a report indicating the incumbent LEC's available collocation space in a particular LEC premises. This report must specify the amount of collocation space available at each requested premises, the number of collocators, and any modifications in the use of the space since the last report. This report must also include measures that the incumbent LEC is taking to make additional space available for collocation. The incumbent LEC must maintain a publicly available document, posted for viewing on the incumbent LEC's publically available Internet site, indicating all premises that are full, and must update such a document within ten days of the date at which a premises runs out of physical collocation space.</P> <P>(i) An incumbent LEC must, upon request, remove obsolete unused equipment from their premises to increase the amount of space available for collocation.</P> <CITA>[61 FR 45619, Aug. 28, 1996, as amended at 64 FR 23241, Apr. 30, 1999; 65 FR 54438, Sept. 8, 2000]</CITA> <EFFDNOT> <HD SOURCE="HED">Effective Date Note:</HD> <P>At 65 FR 54438, Sept. 8, 2000, § 51.321 was amended by revising paragraph (f), effective Oct. 10, 2000. For the convenience of the user, the superseded text is set forth as follows.</P> <SUPERSED> <SECTION> <SECTNO>§ 51.321</SECTNO> <SUBJECT>Methods of obtaining interconnection and access to unbundled elements under section 251 of the Act.</SUBJECT> <STARS/> <P>(f) An incumbent LEC shall submit to the state commission, subject to any protective order as the state commission may deem necessary, detailed floor plans or diagrams of any premises where the incumbent LEC claims that physical collocation is not practical because of space limitations. An incumbent LEC that contends space for physical collocation is not available in an incumbent LEC premises must also allow the requesting carrier to tour the entire premises in question, not just the area in which space was denied, without charge, within ten days of the receipt of the incumbent LEC's denial of space.</P> <STARS/> </SECTION> <SECTION> <SECTNO>§ 51.323</SECTNO> <SUBJECT>Standards for physical collocation and virtual collocation.</SUBJECT> <P>(a) An incumbent LEC shall provide physical collocation and virtual collocation to requesting telecommunications carriers.</P> <P>(b) Whenever an incumbent LEC objects to collocation of equipment by a requesting telecommunications carrier for the purposes within the scope of <PRTPAGE P="41"/>section 251(c)(6) of the Act, the incumbent LEC shall prove to the state commission that the equipment will not be actually used by the telecommunications carrier for the purpose of obtaining interconnection or access to unbundled network elements. An incumbent LEC may not object to the collocation of equipment on the grounds that the equipment does not comply with safety or engineering standards that are more stringent than the safety or engineering standards that the incumbent LEC applies to its own equipment. An incumbent LEC may not object to the collocation of equipment on the ground that the equipment fails to comply with Network Equipment and Building Specifications performance standards or any other performance standards. An incumbent LEC that denies collocation of a competitor's equipment, citing safety standards, must provide to the competitive LEC within five business days of the denial a list of all equipment that the incumbent LEC locates at the premises in question, together with an affidavit attesting that all of that equipment meets or exceeds the safety standard that the incumbent LEC contends the competitor's equipment fails to meet. This affidavit must set forth in detail: the exact safety requirement that the requesting carrier's equipment does not satisfy; the incumbent LEC's basis for concluding that the requesting carrier's equipment does not meet this safety requirement; and the incumbent LEC's basis for concluding why collocation of equipment not meeting this safety requirement would compromise network safety. Equipment used for interconnection or access to unbundled network elements includes, but is not limited to:</P> <P>(1) Transmission equipment including, but not limited to, optical terminating equipment and multiplexers, and</P> <P>(2) Equipment being collocated to terminate basic transmission facilities pursuant to §§ 66.1401 and 64.1402 of this chapter as of August 1, 1996.</P> <P>(3) Digital subscriber line access multiplexers, routers, asyncronous transfer</P> <P>(c) Nothing in this section requires an incumbent LEC to permit collocation of equipment used solely for switching or solely to provide enhanced services; provided, however, that an incumbent LEC may not place any limitations on the ability of requesting carriers to use all the features, functions, and capabilities of equipment collocated pursuant to paragraph (b) of this section, including, but not limited to, switching and routing features and functions and enhanced services functionalities.</P> <P>(d) When an incumbent LEC provides physical collocation, virtual collocation, or both, the incumbent LEC shall:</P> <P>(1) Provide an interconnection point or points, physically accessible by both the incumbent LEC and the collocating telecommunications carrier, at which the fiber optic cable carrying an interconnector's circuits can enter the incumbent LEC's premises, provided that the incumbent LEC shall designate interconnection points as close as reasonably possible to its premises;</P> <P>(2) Provide at least two such interconnection points at each incumbent LEC premises at which there are at least two entry points for the incumbent LEC's cable facilities, and at which space is available for new facilities in at least two of those entry points;</P> <P>(3) Permit interconnection of copper or coaxial cable if such interconnection is first approved by the state commission; and</P> <P>(4) Permit physical collocation of microwave transmission facilities except where such collocation is not practical for technical reasons or because of space limitations, in which case virtual collocation of such facilities is required where technically feasible.</P> <P>(e) When providing virtual collocation, an incumbent LEC shall, at a minimum, install, maintain, and repair collocated equipment identified in paragraph (b) of this section within the same time periods and with failure rates that are no greater than those that apply to the performance of similar functions for comparable equipment of the incumbent LEC itself.</P> <P>(f) An incumbent LEC shall allocate space for the collocation of the equipment identified in paragraph (b) of this <PRTPAGE P="42"/>section in accordance with the following requirements:</P> <P>(1) An incumbent LEC shall make space available within or on its premises to requesting telecommunications carriers on a first-come, first-served basis, provided, however, that the incumbent LEC shall not be required to lease or construct additional space to provide for physical collocation when existing space has been exhausted;</P> <P>(2) To the extent possible, an incumbent LEC shall make contiguous space available to requesting telecommunications carriers that seek to expand their existing collocation space;</P> <P>(3) When planning renovations of existing facilities or constructing or leasing new facilities, an incumbent LEC shall take into account projected demand for collocation of equipment;</P> <P>(4) An incumbent LEC may retain a limited amount of floor space for its own specific future uses, provided, however, that neither the incumbent LEC nor any of its affiliates may reserve space for future use on terms more favorable than those that apply to other telecommunications carriers seeking to reserve collocation space for their own future use;</P> <P>(5) An incumbent LEC shall relinquish any space held for future use before denying a request for virtual collocation on the grounds of space limitations, unless the incumbent LEC proves to the state commission that virtual collocation at that point is not technically feasible; and</P> <P>(6) An incumbent LEC may impose reasonable restrictions on the warehousing of unused space by collocating telecommunications carriers, provided, however, that the incumbent LEC shall not set maximum space limitations applicable to such carriers unless the incumbent LEC proves to the state commission that space constraints make such restrictions necessary.</P> <P>(g) An incumbent LEC shall permit collocating telecommunications carriers to collocate equipment and connect such equipment to unbundled network transmission elements obtained from the incumbent LEC, and shall not require such telecommunications carriers to bring their own transmission facilities to the incumbent LEC's premises in which they seek to collocate equipment.</P> <P>(h) An incumbent LEC shall permit a collocating telecommunications carrier to interconnect its network with that of another collocating telecommunications carrier at the incumbent LEC's premises and to connect its collocated equipment to the collocated equipment of another telecommunications carrier within the same premises provided that the collocated equipment is also used for interconnection with the incumbent LEC or for access to the incumbent LEC's unbundled network elements.</P> <P>(1) An incumbent LEC shall provide, at the request of a collocating telecommunications carrier, the connection between the equipment in the collocated spaces of two or more telecommunications carriers. The incumbent LEC must permit any collocating telecommunications carrier to construct its own connection between the carrier's equipment and that of one or more collocating carriers, if the telecommunications carrier does not request the incumbent LEC's construction of such facilities. The incumbent LEC must permit the requesting carrier to construct such facilities using copper or optical fiber equipment.</P> <P>(2) An incumbent LEC shall permit collocating telecommunications carriers to place their own connecting transmission facilities within the incumbent LEC's premises outside of the actual physical collocation space, subject only to reasonable safety limitations.</P> <P>(i) As provided herein, an incumbent LEC may require reasonable security arrangements to protect its equipment and ensure network reliability. An incumbent LEC may only impose security arrangements that are as stringent as the security arrangements that incumbent LECs maintain at their own premises for their own employees or authorized contractors. An incumbent LEC must allow collocating parties to access their collocated equipment 24 hours a day, seven days a week, without requiring either a security escort of any kind or delaying a competitor's employees’ entry into the incumbent LEC's premises. Reasonable security <PRTPAGE P="43"/>measures that the incumbent LEC may adopt include:</P> <P>(1) Installing security cameras or other monitoring systems; or</P> <P>(2) Requiring competitive LEC personnel to use badges with computerized tracking systems; or</P> <P>(3) Requiring competitive LEC employees to undergo the same level of security training, or its equivalent, that the incumbent's own employees, or third party contractors providing similar functions, must undergo; provided, however, that the incumbent LEC may not require competitive LEC employees to receive such training from the incumbent LEC itself, but must provide information to the competitive LEC on the specific type of training required so the competitive LEC's employees can conduct their own training.</P> <P>(j) An incumbent LEC shall permit a collocating telecommunications carrier to subcontract the construction of physical collocation arrangements with contractors approved by the incumbent LEC, provided, however, that the incumbent LEC shall not unreasonably withhold approval of contractors. Approval by an incumbent LEC shall be based on the same criteria it uses in approving contractors for its own purposes.</P> <P>(k) An incumbent LEC's physical collocation offering must include the following:</P> <P>(1) <E T="03">Shared collocation cages.</E> A shared collocation cage is a caged collocation space shared by two or more competitive LECs pursuant to terms and conditions agreed to by the competitive LECs. In making shared cage arrangements available, an incumbent LEC may not increase the cost of site preparation or nonrecurring charges above the cost for provisioning such a cage of similar dimensions and material to a single collocating party. In addition, the incumbent must prorate the charge for site conditioning and preparation undertaken by the incumbent to construct the shared collocation cage or condition the space for collocation use, regardless of how many carriers actually collocate in that cage, by determining the total charge for site preparation and allocating that charge to a collocating carrier based on the percentage of the total space utilized by that carrier. An incumbent LEC must make shared collocation space available in single-bay increments or their equivalent, i.e., a competing carrier can purchase space in increments small enough to collocate a single rack, or bay, of equipment.</P> <P>(2) <E T="03">Cageless collocation.</E> Incumbent LECs must allow competitors to collocate in any unused space in the incumbent LEC's premises, without requiring the construction of a cage or similar structure, and without requiring the creation of a separate entrance to the competitor's collocation space. An incumbent LEC may require collocating carriers to use a central entrance to the incumbent's building, but may not require construction of a new entrance for competitors’ use, and once inside the building, incumbent LECs must permit collocating carriers to have direct access to their equipment. An incumbent LEC may not require competitors to use an intermediate interconnection arrangement in lieu of direct connection to the incumbent's network if technically feasible. In addition, an incumbent LEC must give competitors the option of collocating equipment in any unused space within the incumbent's premises, and may not require competitors to collocate in a room or isolated space separate from the incumbent's own equipment. An incumbent LEC must make cageless collocation space available in single-bay increments, meaning that a competing carrier can purchase space in increments small enough to collocate a single rack, or bay, of equipment.</P> <P>(3) <E T="03">Adjacent space collocation.</E> An incumbent LEC must make available, where physical collocation space is legitimately exhausted in a particular incumbent LEC structure, collocation in adjacent controlled environmental vaults, controlled environmental huts, or similar structures located at the incumbent LEC premises to the extent technically feasible. The incumbent LEC must permit a requesting telecommunications carrier to construct or otherwise procure such an adjacent structure, subject only to reasonable safety and maintenance requirements. The incumbent must provide power and <PRTPAGE P="44"/>physical collocation services and facilities, subject to the same nondiscrimination requirements as applicable to any other physical collocation arrangement. The incumbent LEC must permit the requesting carrier to place its own equipment, including, but not limited to, copper cables, coaxial cables, fiber cables, and telecommunications equipment, in adjacent facilities constructed by the incumbent LEC, the requesting carrier, or a third-party. If physical collocation space becomes available in a previously exhausted incumbent LEC structure, the incumbent LEC must not require a carrier to move, or prohibit a competitive LEC from moving, a collocation arrangement into that structure. Instead, the incumbent LEC must continue to allow the carrier to collocate in any adjacent controlled environmental vault, controlled environmental vault, or similar structure that the carrier has constructed or otherwise procured.</P> <P>(l) An incumbent LEC must offer to provide and provide all forms of physical collocation (<E T="03">i.e.,</E> caged, cageless, shared, and adjacent) within the following deadlines, except to the extent a state sets its own deadlines or the incumbent LEC has demonstrated to the state commission that physical collocation is not practical for technical reasons or because of space limitations.</P> <P>(1) Within ten days after receiving an application for physical collocation, an incumbent LEC must inform the requesting carrier whether the application meets each of the incumbent LEC's established collocation standards. A requesting carrier that resubmits a revised application curing any deficiencies in an application for physical collocation within ten days after being informed of them retains its position within any collocation queue that the incumbent LEC maintains pursuant to paragraph (f)(1) of this section. </P> <P>(2) Except as stated in paragraphs (l)(3) and (l)(4) of this section, an incumbent LEC must complete provisioning of a requested physical collocation arrangement within 90 days after receiving an application that meets the incumbent LEC's established collocation application standards.</P> <P>(3) An incumbent LEC need not meet the deadline set forth in paragraph (l)(2) of this section if, after receipt of any price quotation provided by the incumbent LEC, the telecommunications carrier requesting collocation does not notify the incumbent LEC that physical collocation should proceed.</P> <P>(4) If, within seven days of the requesting carrier's receipt of any price quotation provided by the incumbent LEC, the telecommunications carrier requesting collocation does not notify the incumbent LEC that physical collocation should proceed, then the incumbent LEC need not complete provisioning of a requested physical collocation arrangement until 90 days after receiving such notification from the requesting telecommunications carrier.</P> <CITA>[61 FR 45619, Aug. 28, 1996, as amended at 64 FR 23242, Apr. 30, 1999; 65 FR 54439, Sept. 8, 2000]</CITA> <EFFDNOT> <HD SOURCE="HED">Effective Date Note:</HD> <P>At 65 FR 54439, Sept. 8, 2000, § 51.323 was amended by revising paragraphs (b) introductory text, (f)(4), and (k)(3), and by adding paragraph (l), effective Oct. 10, 2000. For the convenience of the user, the superseded text is set forth to follow.</P> <SUPERSED> <SECTION> <SECTNO>§ 51.323</SECTNO> <SUBJECT>Standards for physical collocation and virtual collocation.</SUBJECT> <STARS/> <P>(b) An incumbent LEC shall permit the collocation of any type of equipment used or useful for interconnection or access to unbundled network elements. Whenever an incumbent LEC objects to collocation of equipment by a requesting telecommunications carrier for the purposes within the scope of section 251(c)(6) of the Act, the incumbent LEC shall prove to the state commission that the equipment will not be actually used by the telecommunications carrier for the purpose of obtaining interconnection or access to unbundled network elements. An incumbent LEC may not object to the collocation of equipment on the grounds that the equipment does not comply with safety or engineering standards that are more stringent than the safety or engineering standards that the incumbent LEC applies to its own equipment. An incumbent LEC may not object to the collocation of equipment on the ground that the equipment fails to comply with National Equipment and Building Specifications performance standards. An incumbent LEC that denies collocation of a competitor's equipment, citing safety standards, must provide to the competitive LEC within five business days of the denial a list <PRTPAGE P="45"/>of all equipment that the incumbent LEC locates within the premises in question, together with an affidavit attesting that all of that equipment meets or exceeds the safety standard that the incumbent LEC contends the competitor's equipment fails to meet. Equipment used for interconnection and access to unbundled network elements includes, but is not limited to:</P> <STARS/> <P>(f) ***</P> <P>(4) An incumbent LEC may retain a limited amount of floor space for its own specific future uses, provided, however, that the incumbent LEC may not reserve space for future use on terms more favorable than those that apply to other telecommunications carriers seeking to reserve collocation space for their own future use;</P> <STARS/> <P>(k) ***</P> <P>(3) <E T="03">Adjacent space collocation.</E> An incumbent LEC must make available, where space is legitimately exhausted in a particular incumbent LEC premises, collocation in adjacent controlled environmental vaults or similar structures to the extent technically feasible. The incumbent LEC must permit the new entrant to construct or otherwise procure such an adjacent structure, subject only to reasonable safety and maintenance requirements. The incumbent must provide power and physical collocation services and facilities, subject to the same nondiscrimination requirements as applicable to any other physical collocation arrangement. The incumbent LEC must permit the requesting carrier to place its own equipment, including, but not limited to, copper cables, coaxial cables, fiber cables, and telecommunications equipment, in adjacent facilities constructed by either the incumbent LEC or by the requesting carrier itself.</P> </SECTION> <SECTION> <SECTNO>§ 51.325</SECTNO> <SUBJECT>Notice of network changes: Public notice requirement.</SUBJECT> <P>(a) An incumbent local exchange carrier (“LEC”) must provide public notice regarding any network change that:</P> <P>(1) Will affect a competing service provider's performance or ability to provide service;</P> <P>(2) Will affect the incumbent LEC's interoperability with other service providers; or</P> <P>(3) Will affect the manner in which customer premises equipment is attached to the interstate network.</P> <P>(b) For purposes of this section, <E T="03">interoperability</E> means the ability of two or more facilities, or networks, to be connected, to exchange information, and to use the information that has been exchanged.</P> <P>(c) Until public notice has been given in accordance with §§ 51.325 through 51.335, an incumbent LEC may not disclose to separate affiliates, separated affiliates, or unaffiliated entities (including actual or potential competing service providers or competitors), information about planned network changes that are subject to this section.</P> <P>(d) For the purposes of §§ 51.325 through 51.335, the term <E T="03">services</E> means telecommunications services or information services.</P> <CITA>[61 FR 47351, Sept. 6, 1996, as amended at 64 FR 14148, Mar. 24, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 51.327</SECTNO> <SUBJECT>Notice of network changes: Content of notice.</SUBJECT> <P>(a) Public notice of planned network changes must, at a minimum, include:</P> <P>(1) The carrier's name and address;</P> <P>(2) The name and telephone number of a contact person who can supply additional information regarding the planned changes;</P> <P>(3) The implementation date of the planned changes;</P> <P>(4) The location(s) at which the changes will occur;</P> <P>(5) A description of the type of changes planned (Information provided to satisfy this requirement must include, as applicable, but is not limited to, references to technical specifications, protocols, and standards regarding transmission, signaling, routing, and facility assignment as well as references to technical standards that would be applicable to any new technologies or equipment, or that may otherwise affect interconnection); and</P> <P>(6) A description of the reasonably foreseeable impact of the planned changes.</P> <P>(b) The incumbent LEC also shall follow, as necessary, procedures relating to confidential or proprietary information contained in § 51.335.</P> <CITA>[61 FR 47351, Sept. 6, 1996]</CITA> </SECTION> <SECTION> <SECTNO>§ 51.329</SECTNO> <SUBJECT>Notice of network changes: Methods for providing notice.</SUBJECT> <P>(a) In providing the required notice to the public of network changes, an <PRTPAGE P="46"/>incumbent LEC may use one of the following methods:</P> <P>(1) Filing a public notice with the Commission; or</P> <P>(2) Providing public notice through industry fora, industry publications, or the carrier's publicly accessible Internet site. If an incumbent LEC uses any of the methods specified in paragraph (a)(2) of this section, it also must file a certification with the Commission that includes:</P> <P>(i) A statement that identifies the proposed changes;</P> <P>(ii) A statement that public notice has been given in compliance with §§ 51.325 through 51.335; and</P> <P>(iii) A statement identifying the location of the change information and describing how this information can be obtained.</P> <P>(b) Until the planned change is implemented, an incumbent LEC must keep the notice available for public inspection, and amend the notice to keep the information complete, accurate and up-to-date.</P> <P>(c) <E T="03">Specific filing requirements.</E> Commission filings under this section must be made as follows:</P> <P>(1) The public notice or certification must be labeled with one of the following titles, as appropriate: “Public Notice of Network Change Under Rule 51.329(a),” “Certification of Public Notice of Network Change Under Rule 51.329(a),” “Short Term Public Notice Under Rule 51.333(a),” or “Certification of Short Term Public Notice Under Rule 51.333(a).”</P> <P>(2) Two paper copies of the incumbent LEC's public notice or certification, required under paragraph (a) of this section, must be sent to “Secretary, Federal Communications Commission, Washington, DC 20554.” The date on which this filing is received by the Secretary is considered the official filing date.</P> <P>(3) In addition, one paper copy and one diskette copy must be sent to the “Chief, Network Services Division, Common Carrier Bureau, Federal Communications Commission, Washington, DC 20554.” The diskette copy must be on a standard 3<FR>1/2</FR> inch diskette, formatted in IBM-compatible format to be readable by high-density floppy drives operating under MS DOS 5.X or later compatible versions, and shall be in a word-processing format designated, from time-to-time, in public notices released by the Network Services Division. The diskette must be submitted in “read only” mode, and must be clearly labeled with the carrier's name, the filing date, and an identification of the diskette's contents.</P> <CITA>[61 FR 47351, Sept. 6, 1996]</CITA> </SECTION> <SECTION> <SECTNO>§ 51.331</SECTNO> <SUBJECT>Notice of network changes: Timing of notice.</SUBJECT> <P>(a) An incumbent LEC shall give public notice of planned changes at the make/buy point, as defined in paragraph (b) of this section, but at least 12 months before implementation, except as provided below:</P> <P>(1) If the changes can be implemented within twelve months of the make/buy point, public notice must be given at the make/buy point, but at least six months before implementation.</P> <P>(2) If the changes can be implemented within six months of the make/buy point, public notice may be given pursuant to the short term notice procedures provided in § 51.333.</P> <P>(b) For purposes of this section, the <E T="03">make/buy point</E> is the time at which an incumbent LEC decides to make for itself, or to procure from another entity, any product the design of which affects or relies on a new or changed network interface. If an incumbent LEC's planned changes do not require it to make or to procure a product, then the make/buy point is the point at which the incumbent LEC makes a definite decision to implement a network change.</P> <P>(1) For purposes of this section, a <E T="03">product</E> is any hardware r software for use in an incumbent LEC's network or in conjunction with its facilities that, when installed, could affect the compatibility of an interconnected service provider's network, facilities or services with an incumbent LEC's existing telephone network, facilities or services, or with any of an incumbent carrier's services or capabilities.</P> <P>(2) For purposes of this section a <E T="03">definite decision</E> is reached when an incumbent LEC determines that the change is warranted, establishes a timetable for anticipated implementation, and <PRTPAGE P="47"/>takes any action toward implementation of the change within its network.</P> <CITA>[61 FR 47352, Sept. 6, 1996]</CITA> </SECTION> <SECTION> <SECTNO>§ 51.333</SECTNO> <SUBJECT>Notice of network changes: Short term notice.</SUBJECT> <P>(a) <E T="03">Certificate of service.</E> If an incumbent LEC wishes to provide less than six months notice of planned network changes, the public notice or certification that it files with the Commission must include a certificate of service in addition to the information required by § 51.327(a) or § 51.329(a)(2), as applicable. The certificate of service shall include:</P> <P>(1) A statement that, at least five business days in advance of its filing with the Commission, the incumbent LEC served a copy of its public notice upon each telephone exchange service provider that directly interconnects with the incumbent LEC's network; and</P> <P>(2) The name and address of each such telephone exchange service provider upon which the notice was served.</P> <P>(b) <E T="03">Implementation date.</E> The Commission will release a public notice of such short term notice filings. Short term notices shall be deemed final on the tenth business day after the release of the Commission's public notice, unless an objection is filed, pursuant to paragraph (c) of this section.</P> <P>(c) <E T="03">Objection procedures.</E> An objection to an incumbent LEC's short term notice may be filed by an information service provider or telecommunication service provider that directly interconnects with the incumbent LEC's network. Such objections must be filed with the Commission, and served on the incumbent LEC, no later than the ninth business day following the release of the Commission's public notice. All objections to an incumbent LEC's short term notice must:</P> <P>(1) State specific reasons why the objector cannot accommodate the incumbent LEC's changes by the date stated in the incumbent LEC's public notice and must indicate any specific technical information or other assistance required that would enable the objector to accommodate those changes;</P> <P>(2) List steps the objector is taking to accommodate the incumbent LEC's changes on an expedited basis;</P> <P>(3) State the earliest possible date (not to exceed six months from the date the incumbent LEC gave its original public notice under this section) by which the objector anticipates that it can accommodate the incumbent LEC's changes, assuming it receives the technical information or other assistance requested under paragraph (c)(1) of this section;</P> <P>(4) Provide any other information relevant to the objection; and</P> <P>(5) Provide the following affidavit, executed by the objector's president, chief executive officer, or other corporate officer or official, who has appropriate authority to bind the corporation, and knowledge of the details of the objector's inability to adjust its network on a timely basis: </P> <EXTRACT> <P>“I, (<E T="03">name and title</E>), under oath and subject to penalty for perjury, certify that I have read this objection, that the statements contained in it are true, that there is good ground to support the objection, and that it is not interposed for purposes of delay. I have appropriate authority to make this certification on behalf of (<E T="03">objector</E>) and I agree to provide any information the Commission may request to allow the Commission to evaluate the truthfulness and validity of the statements contained in this objection.”</P> </EXTRACT> <P>(d) <E T="03">Response to objections.</E> If an objection is filed, an incumbent LEC shall have until no later than the fourteenth business day following the release of the Commission's public notice to file with the Commission a response to the objection and to serve the response on all parties that filed objections. An incumbent LEC's response must:</P> <P>(1) Provide information responsive to the allegations and concerns identified by the objectors;</P> <P>(2) State whether the implementation date(s) proposed by the objector(s) are acceptable;</P> <P>(3) Indicate any specific technical assistance that the incumbent LEC is willing to give to the objectors; and</P> <P>(4) Provide any other relevant information.</P> <P>(e) <E T="03">Resolution.</E> If an objection is filed pursuant to paragraph (c) of this section, then the Chief, Network Services Division, Common Carrier Bureau, will <PRTPAGE P="48"/>issue an order determining a reasonable public notice period, <E T="03">provided however,</E> that if an incumbent LEC does not file a response within the time period allotted, or if the incumbent LEC's response accepts the latest implementation date stated by an objector, then the incumbent LEC's public notice shall be deemed amended to specify the implementation date requested by the objector, without further Commission action. An incumbent LEC must amend its public notice to reflect any change in the applicable implementation date pursuant to § 51.329(b).</P> <CITA>[61 FR 47352, Sept. 6, 1996]</CITA> </SECTION> <SECTION> <SECTNO>§ 51.335</SECTNO> <SUBJECT>Notice of network changes: Confidential or proprietary information.</SUBJECT> <P>(a) If an incumbent LEC claims that information otherwise required to be disclosed is confidential or proprietary, the incumbent LEC's public notice must include, in addition to the information identified in § 51.327(a), a statement that the incumbent LEC will make further information available to those signing a nondisclosure agreement.</P> <P>(b) <E T="03">Tolling the public notice period.</E> Upon receipt by an incumbent LEC of a competing service provider's request for disclosure of confidential or proprietary information, the applicable public notice period will be tolled until the parties agree on the terms of a nondisclosure agreement. An incumbent LEC receiving such a request must amend its public notice as follows:</P> <P>(1) On the date it receives a request from a competing service provider for disclosure of confidential or proprietary information, to state that the notice period is tolled; and</P> <P>(2) On the date the nondisclosure agreement is finalized, to specify a new implementation date.</P> <CITA>[61 FR 47352, Sept. 6, 1996]</CITA> </SECTION> <SUBPART> <HD SOURCE="HED">Subpart E—Exemptions, Suspensions, and Modifications of Requirements of Section 251 of the Act</HD> <SECTION> <SECTNO>§ 51.401</SECTNO> <SUBJECT>State authority.</SUBJECT> <P>A state commission shall determine whether a telephone company is entitled, pursuant to section 251(f) of the Act, to exemption from, or suspension or modification of, the requirements of section 251 of the Act. Such determinations shall be made on a case-by-case basis.</P> </SECTION> <SECTION> <SECTNO>§ 51.403</SECTNO> <SUBJECT>Carriers eligible for suspension or modification under section 251(f)(2) of the Act.</SUBJECT> <P>A LEC is not eligible for a suspension or modification of the requirements of section 251(b) or section 251(c) of the Act pursuant to section 251(f)(2) of the Act if such LEC, at the holding company level, has two percent or more of the subscriber lines installed in the aggregate nationwide.</P> </SECTION> <SECTION> <SECTNO>§ 51.405</SECTNO> <SUBJECT>Burden of proof.</SUBJECT> <P>(a) Upon receipt of a bona fide request for interconnection, services, or access to unbundled network elements, a rural telephone company must prove to the state commission that the rural telephone company should be entitled, pursuant to section 251(f)(1) of the Act, to continued exemption from the requirements of section 251(c) of the Act.</P> <P>(b) A LEC with fewer than two percent of the nation's subscriber lines installed in the aggregate nationwide must prove to the state commission, pursuant to section 251(f)(2) of the Act, that it is entitled to a suspension or modification of the application of a requirement or requirements of section 251(b) or 251(c) of the Act.</P> <P>(c) In order to justify continued exemption under section 251(f)(1) of the Act once a bona fide request has been made, an incumbent LEC must offer evidence that the application of the requirements of section 251(c) of the Act <PRTPAGE P="49"/>would be likely to cause undue economic burden beyond the economic burden that is typically associated with efficient competitive entry.</P> <P>(d) In order to justify a suspension or modification under section 251(f)(2) of the Act, a LEC must offer evidence that the application of section 251(b) or section 251(c) of the Act would be likely to cause undue economic burden beyond the economic burden that is typically associated with efficient competitive entry.</P> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart F—Pricing of Elements</HD> <SECTION> <SECTNO>§ 51.501</SECTNO> <SUBJECT>Scope.</SUBJECT> <P>(a) The rules in this subpart apply to the pricing of network elements, interconnection, and methods of obtaining access to unbundled elements, including physical collocation and virtual collocation.</P> <P>(b) As used in this subpart, the term “element” includes network elements, interconnection, and methods of obtaining interconnection and access to unbundled elements.</P> </SECTION> <SECTION> <SECTNO>§ 51.503</SECTNO> <SUBJECT>General pricing standard.</SUBJECT> <P>(a) An incumbent LEC shall offer elements to requesting telecommunications carriers at rates, terms, and conditions that are just, reasonable, and nondiscriminatory.</P> <P>(b) An incumbent LEC's rates for each element it offers shall comply with the rate structure rules set forth in §§ 51.507 and 51.509, and shall be established, at the election of the state commission—</P> <P>(1) Pursuant to the forward-looking economic cost-based pricing methodology set forth in §§ 51.505 and 51.511; or</P> <P>(2) Consistent with the proxy ceilings and ranges set forth in § 51.513.</P> <P>(c) The rates that an incumbent LEC assesses for elements shall not vary on the basis of the class of customers served by the requesting carrier, or on the type of services that the requesting carrier purchasing such elements uses them to provide.</P> </SECTION> <SECTION> <SECTNO>§ 51.505</SECTNO> <SUBJECT>Forward-looking economic cost.</SUBJECT> <P>(a) <E T="03">In general.</E> The forward-looking economic cost of an element equals the sum of:</P> <P>(1) The total element long-run incremental cost of the element, as described in paragraph (b); and</P> <P>(2) A reasonable allocation of forward-looking common costs, as described in paragraph (c).</P> <P>(b) <E T="03">Total element long-run incremental cost.</E> The total element long-run incremental cost of an element is the forward-looking cost over the long run of the total quantity of the facilities and functions that are directly attributable to, or reasonably identifiable as incremental to, such element, calculated taking as a given the incumbent LEC's provision of other elements.</P> <P>(1) <E T="03">Efficient network configuration.</E> The total element long-run incremental cost of an element should be measured based on the use of the most efficient telecommunications technology currently available and the lowest cost network configuration, given the existing location of the incumbent LEC's wire centers.</P> <P>(2) <E T="03">Forward-looking cost of capital.</E> The forward-looking cost of capital shall be used in calculating the total element long-run incremental cost of an element.</P> <P>(3) <E T="03">Depreciation rates.</E> The depreciation rates used in calculating forward-looking economic costs of elements shall be economic depreciation rates.</P> <P>(c) <E T="03">Reasonable allocation of forward-looking common costs</E>—(1) <E T="03">Forward-looking common costs.</E> Forward-looking common costs are economic costs efficiently incurred in providing a group of elements or services (which may include all elements or services provided by the incumbent LEC) that cannot be attributed directly to individual elements or services.</P> <P>(2) <E T="03">Reasonable allocation.</E> (i) The sum of a reasonable allocation of forward-looking common costs and the total element long-run incremental cost of an element shall not exceed the stand-alone costs associated with the element. In this context, stand-alone costs are the total forward-looking costs, including corporate costs, that would be incurred to produce a given element if that element were provided by an efficient firm that produced nothing but the given element.<PRTPAGE P="50"/> </P> <P>(ii) The sum of the allocation of forward-looking common costs for all elements and services shall equal the total forward-looking common costs, exclusive of retail costs, attributable to operating the incumbent LEC's total network, so as to provide all the elements and services offered.</P> <P>(d) <E T="03">Factors that may not be considered.</E> The following factors shall not be considered in a calculation of the forward-looking economic cost of an element:</P> <P>(1) <E T="03">Embedded costs.</E> Embedded costs are the costs that the incumbent LEC incurred in the past and that are recorded in the incumbent LEC's books of accounts;</P> <P>(2) <E T="03">Retail costs.</E> Retail costs include the costs of marketing, billing, collection, and other costs associated with offering retail telecommunications services to subscribers who are not telecommunications carriers, described in § 51.609;</P> <P>(3) <E T="03">Opportunity costs.</E> Opportunity costs include the revenues that the incumbent LEC would have received for the sale of telecommunications services, in the absence of competition from telecommunications carriers that purchase elements; and</P> <P>(4) <E T="03">Revenues to subsidize other services.</E> Revenues to subsidize other services include revenues associated with elements or telecommunications service offerings other than the element for which a rate is being established.</P> <P>(e) <E T="03">Cost study requirements.</E> An incumbent LEC must prove to the state commission that the rates for each element it offers do not exceed the forward-looking economic cost per unit of providing the element, using a cost study that complies with the methodology set forth in this section and § 51.511.</P> <P>(1) A state commission may set a rate outside the proxy ranges or above the proxy ceilings described in § 51.513 only if that commission has given full and fair effect to the economic cost based pricing methodology described in this section and § 51.511 in a state proceeding that meets the requirements of paragraph (e)(2) of this section.</P> <P>(2) Any state proceeding conducted pursuant to this section shall provide notice and an opportunity for comment to affected parties and shall result in the creation of a written factual record that is sufficient for purposes of review. The record of any state proceeding in which a state commission considers a cost study for purposes of establishing rates under this section shall include any such cost study.</P> </SECTION> <SECTION> <SECTNO>§ 51.507</SECTNO> <SUBJECT>General rate structure standard.</SUBJECT> <P>(a) Element rates shall be structured consistently with the manner in which the costs of providing the elements are incurred.</P> <P>(b) The costs of dedicated facilities shall be recovered through flat-rated charges.</P> <P>(c) The costs of shared facilities shall be recovered in a manner that efficiently apportions costs among users. Costs of shared facilities may be apportioned either through usage-sensitive charges or capacity-based flat-rated charges, if the state commission finds that such rates reasonably reflect the costs imposed by the various users.</P> <P>(d) Recurring costs shall be recovered through recurring charges, unless an incumbent LEC proves to a state commission that such recurring costs are de minimis. Recurring costs shall be considered de minimis when the costs of administering the recurring charge would be excessive in relation to the amount of the recurring costs.</P> <P>(e) State commissions may, where reasonable, require incumbent LECs to recover nonrecurring costs through recurring charges over a reasonable period of time. Nonrecurring charges shall be allocated efficiently among requesting telecommunications carriers, and shall not permit an incumbent LEC to recover more than the total forward-looking economic cost of providing the applicable element.</P> <P>(f) State commissions shall establish different rates for elements in at least three defined geographic areas within the state to reflect geographic cost differences.</P> <P>(1) To establish geographically-deaveraged rates, state commissions may use existing density-related zone pricing plans described in § 69.123 of this chapter, or other such cost-related zone plans established pursuant to state law.</P> <P>(2) In states not using such existing plans, state commissions must create a <PRTPAGE P="51"/>minimum of three cost-related rate zones.</P> <CITA>[61 FR 45619, Aug. 29, 1996, as amended at 64 FR 32207, June 16, 1999; 64 FR 68637, Dec. 8, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 51.509</SECTNO> <SUBJECT>Rate structure standards for specific elements.</SUBJECT> <P>In addition to the general rules set forth in § 51.507, rates for specific elements shall comply with the following rate structure rules.</P> <P>(a) <E T="03">Local loops.</E> Loop costs shall be recovered through flat-rated charges.</P> <P>(b) <E T="03">Local switching.</E> Local switching costs shall be recovered through a combination of a flat-rated charge for line ports and one or more flat-rated or per-minute usage charges for the switching matrix and for trunk ports.</P> <P>(c) <E T="03">Dedicated transmission links.</E> Dedicated transmission link costs shall be recovered through flat-rated charges.</P> <P>(d) <E T="03">Shared transmission facilities between tandem switches and end offices.</E> The costs of shared transmission facilities between tandem switches and end offices may be recovered through usage-sensitive charges, or in another manner consistent with the manner that the incumbent LEC incurs those costs.</P> <P>(e) <E T="03">Tandem switching.</E> Tandem switching costs may be recovered through usage-sensitive charges, or in another manner consistent with the manner that the incumbent LEC incurs those costs.</P> <P>(f) <E T="03">Signaling and call-related database services.</E> Signaling and call-related database service costs shall be usage-sensitive, based on either the number of queries or the number of messages, with the exception of the dedicated circuits known as signaling links, the cost of which shall be recovered through flat-rated charges.</P> <P>(g) <E T="03">Collocation.</E> Collocation costs shall be recovered consistent with the rate structure policies established in the <E T="03">Expanded Interconnection</E> proceeding, CC Docket No. 91-141.</P> </SECTION> <SECTION> <SECTNO>§ 51.511</SECTNO> <SUBJECT>Forward-looking economic cost per unit.</SUBJECT> <P>(a) The forward-looking economic cost per unit of an element equals the forward-looking economic cost of the element, as defined in § 51.505, divided by a reasonable projection of the sum of the total number of units of the element that the incumbent LEC is likely to provide to requesting telecommunications carriers and the total number of units of the element that the incumbent LEC is likely to use in offering its own services, during a reasonable measuring period.</P> <P>(b)(1) With respect to elements that an incumbent LEC offers on a flat-rate basis, the number of units is defined as the discrete number of elements (<E T="03">e.g.,</E> local loops or local switch ports) that the incumbent LEC uses or provides.</P> <P>(2) With respect to elements that an incumbent LEC offers on a usage-sensitive basis, the number of units is defined as the unit of measurement of the usage (<E T="03">e.g.,</E> minutes of use or call-related database queries) of the element.</P> </SECTION> <SECTION> <SECTNO>§ 51.513</SECTNO> <SUBJECT>Proxies for forward-looking economic cost.</SUBJECT> <P>(a) A state commission may determine that the cost information available to it with respect to one or more elements does not support the adoption of a rate or rates that are consistent with the requirements set forth in §§ 51.505 and 51.511. In that event, the state commission may establish a rate for an element that is consistent with the proxies specified in this section, provided that:</P> <P>(1) Any rate established through use of such proxies shall be superseded once the state commission has completed review of a cost study that complies with the forward-looking economic cost based pricing methodology described in §§ 51.505 and 51.511, and has concluded that such study is a reasonable basis for establishing element rates; and</P> <P>(2) The state commission sets forth in writing a reasonable basis for its selection of a particular rate for the element.</P> <P>(b) The constraints on proxy-based rates described in this section apply on a geographically averaged basis. For purposes of determining whether geographically deaveraged rates for elements comply with the provisions of this section, a geographically averaged proxy-based rate shall be computed based on the weighted average of the actual, geographically deaveraged <PRTPAGE P="52"/>rates that apply in separate geographic areas in a state.</P> <P>(c) <E T="03">Proxies for specific elements</E>—(1) <E T="03">Local loops.</E> For each state listed below, the proxy-based monthly rate for unbundled local loops, on a statewide weighted average basis, shall be no greater than the figures listed in the table below. (The Commission has not established a default proxy ceiling for loop rates in Alaska.)</P> <GPOTABLE CDEF="s10,7" COLS="2" OPTS="L2,i1"> <TTITLE> <E T="04">Table</E> </TTITLE> <BOXHD> <CHED H="1">State</CHED> <CHED H="1">Proxy ceiling</CHED> </BOXHD> <ROW> <ENT I="01">Alabama</ENT> <ENT>$17.25</ENT> </ROW> <ROW> <ENT I="01">Arizona</ENT> <ENT>12.85</ENT> </ROW> <ROW> <ENT I="01">Arkansas</ENT> <ENT>21.18</ENT> </ROW> <ROW> <ENT I="01">California</ENT> <ENT>11.10</ENT> </ROW> <ROW> <ENT I="01">Colorado</ENT> <ENT>14.97</ENT> </ROW> <ROW> <ENT I="01">Connecticut</ENT> <ENT>13.23</ENT> </ROW> <ROW> <ENT I="01">Delaware</ENT> <ENT>13.24</ENT> </ROW> <ROW> <ENT I="01">District of Columbia</ENT> <ENT>10.81</ENT> </ROW> <ROW> <ENT I="01">Florida</ENT> <ENT>13.68</ENT> </ROW> <ROW> <ENT I="01">Georgia</ENT> <ENT>16.09</ENT> </ROW> <ROW> <ENT I="01">Hawaii</ENT> <ENT>15.27</ENT> </ROW> <ROW> <ENT I="01">Idaho</ENT> <ENT>20.16</ENT> </ROW> <ROW> <ENT I="01">Illinois</ENT> <ENT>13.12</ENT> </ROW> <ROW> <ENT I="01">Indiana</ENT> <ENT>13.29</ENT> </ROW> <ROW> <ENT I="01">Iowa</ENT> <ENT>15.94</ENT> </ROW> <ROW> <ENT I="01">Kansas</ENT> <ENT>19.85</ENT> </ROW> <ROW> <ENT I="01">Kentucky</ENT> <ENT>16.70</ENT> </ROW> <ROW> <ENT I="01">Louisiana</ENT> <ENT>16.98</ENT> </ROW> <ROW> <ENT I="01">Maine</ENT> <ENT>18.69</ENT> </ROW> <ROW> <ENT I="01">Maryland</ENT> <ENT>13.36</ENT> </ROW> <ROW> <ENT I="01">Massachusetts</ENT> <ENT>9.83</ENT> </ROW> <ROW> <ENT I="01">Michigan</ENT> <ENT>15.27</ENT> </ROW> <ROW> <ENT I="01">Minnesota</ENT> <ENT>14.81</ENT> </ROW> <ROW> <ENT I="01">Mississippi</ENT> <ENT>21.97</ENT> </ROW> <ROW> <ENT I="01">Missouri</ENT> <ENT>18.32</ENT> </ROW> <ROW> <ENT I="01">Montana</ENT> <ENT>25.18</ENT> </ROW> <ROW> <ENT I="01">Nebraska</ENT> <ENT>18.05</ENT> </ROW> <ROW> <ENT I="01">Nevada</ENT> <ENT>18.95</ENT> </ROW> <ROW> <ENT I="01">New Hampshire</ENT> <ENT>16.00</ENT> </ROW> <ROW> <ENT I="01">New Jersey</ENT> <ENT>12.47</ENT> </ROW> <ROW> <ENT I="01">New Mexico</ENT> <ENT>18.66</ENT> </ROW> <ROW> <ENT I="01">New York</ENT> <ENT>11.75</ENT> </ROW> <ROW> <ENT I="01">North Carolina</ENT> <ENT>16.71</ENT> </ROW> <ROW> <ENT I="01">North Dakota</ENT> <ENT>25.36</ENT> </ROW> <ROW> <ENT I="01">Ohio</ENT> <ENT>15.73</ENT> </ROW> <ROW> <ENT I="01">Oklahoma</ENT> <ENT>17.63</ENT> </ROW> <ROW> <ENT I="01">Oregon</ENT> <ENT>15.44</ENT> </ROW> <ROW> <ENT I="01">Pennsylvania</ENT> <ENT>12.30</ENT> </ROW> <ROW> <ENT I="01">Puerto Rico</ENT> <ENT>12.47</ENT> </ROW> <ROW> <ENT I="01">Rhode Island</ENT> <ENT>11.48</ENT> </ROW> <ROW> <ENT I="01">South Carolina</ENT> <ENT>17.07</ENT> </ROW> <ROW> <ENT I="01">South Dakota</ENT> <ENT>25.33</ENT> </ROW> <ROW> <ENT I="01">Tennessee</ENT> <ENT>17.41</ENT> </ROW> <ROW> <ENT I="01">Texas</ENT> <ENT>15.49</ENT> </ROW> <ROW> <ENT I="01">Utah</ENT> <ENT>15.12</ENT> </ROW> <ROW> <ENT I="01">Vermont</ENT> <ENT>20.13</ENT> </ROW> <ROW> <ENT I="01">Virginia</ENT> <ENT>14.13</ENT> </ROW> <ROW> <ENT I="01">Washington</ENT> <ENT>13.37</ENT> </ROW> <ROW> <ENT I="01">West Virginia</ENT> <ENT>19.25</ENT> </ROW> <ROW> <ENT I="01">Wisconsin</ENT> <ENT>15.94</ENT> </ROW> <ROW> <ENT I="01">Wyoming</ENT> <ENT>25.11 </ENT> </ROW> </GPOTABLE> <P>(2) <E T="03">Local switching</E>. (i) The blended proxy-based rate for the usage-sensitive component of the unbundled local switching element, including the switching matrix, the functionalities used to provide vertical features, and the trunk ports, shall be no greater than 0.4 cents ($0.004) per minute, and no less than 0.2 cents ($0.002) per minute, except that, where a state commission has, before August 8, 1996, established a rate less than or equal to 0.5 cents ($0.005) per minute, that rate may be retained pending completion of a forward-looking economic cost study. If a flat-rated charge is established for these components, it shall be converted to a per-minute rate by dividing the projected average minutes of use per flat-rated subelement, for purposes of assessing compliance with this proxy. A weighted average of such flat-rate or usage-sensitive charges shall be used in appropriate circumstances, such as when peak and off-peak charges are used.</P> <P>(ii) The blended proxy-based rate for the line port component of the local switching element shall be no less than $1.10, and no more than $2.00, per line port per month for ports used in the delivery of basic residential and business exchange services.</P> <P>(3) <E T="03">Dedicated transmission links.</E> The proxy-based rates for dedicated transmission links shall be no greater than the incumbent LEC's tariffed interstate charges for comparable entrance facilities or direct-trunked transport offerings, as described in §§ 69.110 and 69.112 of this chapter.</P> <P>(4) <E T="03">Shared transmission facilities between tandem switches and end offices.</E> The proxy-based rates for shared transmission facilities between tandem switches and end offices shall be no greater than the weighted per-minute equivalent of DS1 and DS3 interoffice dedicated transmission link rates that reflects the relative number of DS1 and DS3 circuits used in the tandem to end office links (or a surrogate based on the proportion of copper and fiber facilities in the interoffice network), calculated using a loading factor of 9,000 minutes per month per voice-grade circuit, as described in § 69.112 of this chapter.</P> <P>(5) <E T="03">Tandem switching.</E> The proxy-based rate for tandem switching shall be no greater than 0.15 cents ($0.0015) per minute of use.<PRTPAGE P="53"/> </P> <P>(6) <E T="03">Collocation.</E> To the extent that the incumbent LEC offers a comparable form of collocation in its interstate expanded interconnection tariffs, as described in §§ 64.1401 and 69.121 of this chapter, the proxy-based rates for collocation shall be no greater than the effective rates for equivalent services in the interstate expanded interconnection tariff. To the extent that the incumbent LEC does not offer a comparable form of collocation in its interstate expanded interconnection tariffs, a state commission may, in its discretion, establish a proxy-based rate, provided that the state commission sets forth in writing a reasonable basis for concluding that its rate would approximate the result of a forward-looking economic cost study, as described in § 51.505.</P> <P>(7) <E T="03">Signaling, call-related database, and other elements.</E> To the extent that the incumbent LEC has established rates for offerings comparable to other elements in its interstate access tariffs, and has provided cost support for those rates pursuant to § 61.49(h) of this chapter, the proxy-based rates for those elements shall be no greater than the effective rates for equivalent services in the interstate access tariffs. In other cases, the proxy-based rate shall be no greater than a rate based on direct costs plus a reasonable allocation of overhead loadings, pursuant to § 61.49(h) of this chapter.</P> <CITA>[61 FR 45619, Aug. 29, 1996, as amended at 61 FR 52709, Oct. 8, 1996]</CITA> </SECTION> <SECTION> <SECTNO>§ 51.515</SECTNO> <SUBJECT>Application of access charges.</SUBJECT> <P>(a) Neither the interstate access charges described in part 69 of this chapter nor comparable intrastate access charges shall be assessed by an incumbent LEC on purchasers of elements that offer telephone exchange or exchange access services.</P> <P>(b) Notwithstanding §§ 51.505, 51.511, and 51.513(d)(2) and paragraph (a) of this section, an incumbent LEC may assess upon telecommunications carriers that purchase unbundled local switching elements, as described in § 51.319(c)(1), for interstate minutes of use traversing such unbundled local switching elements, the carrier common line charge described in § 69.105 of this chapter, and a charge equal to 75% of the interconnection charge described in § 69.124 of this chapter, only until the earliest of the following, and not thereafter:</P> <P>(1) June 30, 1997;</P> <P>(2) The later of the effective date of a final Commission decision in CC Docket No. 96-45, <E T="03">Federal-State Joint Board on Universal Service,</E> or the effective date of a final Commission decision in a proceeding to consider reform of the interstate access charges described in part 69; or</P> <P>(3) With respect to a Bell operating company only, the date on which that company is authorized to offer in-region interLATA service in a state pursuant to section 271 of the Act. The end date for Bell operating companies that are authorized to offer interLATA service shall apply only to the recovery of access charges in those states in which the Bell operating company is authorized to offer such service.</P> <P>(c) Notwithstanding §§ 51.505, 51.511, and 51.513(d)(2) and paragraph (a) of this section, an incumbent LEC may assess upon telecommunications carriers that purchase unbundled local switching elements, as described in § 51.319(c)(1), for intrastate toll minutes of use traversing such unbundled local switching elements, intrastate access charges comparable to those listed in paragraph (b) and any explicit intrastate universal service mechanism based on access charges, only until the earliest of the following, and not thereafter:</P> <P>(1) June 30, 1997;</P> <P>(2) The effective date of a state commission decision that an incumbent LEC may not assess such charges; or</P> <P>(3) With respect to a Bell operating company only, the date on which that company is authorized to offer in-region interLATA service in the state pursuant to section 271 of the Act. The end date for Bell operating companies that are authorized to offer interLATA service shall apply only to the recovery of access charges in those states in which the Bell operating company is authorized to offer such service.</P> <P>(d) Interstate access charges described in part 69 shall not be assessed by incumbent LECs on each element <PRTPAGE P="54"/>purchased by requesting carriers providing both telephone exchange and exchange access services to such requesting carriers' end users.</P> <CITA>[61 FR 45619, Aug. 29, 1996, as amended at 62 FR 45587, Aug. 28, 1997]</CITA> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart G—Resale</HD> <SECTION> <SECTNO>§ 51.601</SECTNO> <SUBJECT>Scope of resale rules.</SUBJECT> <P>The provisions of this subpart govern the terms and conditions under which LECs offer telecommunications services to requesting telecommunications carriers for resale.</P> </SECTION> <SECTION> <SECTNO>§ 51.603</SECTNO> <SUBJECT>Resale obligation of all local exchange carriers.</SUBJECT> <P>(a) A LEC shall make its telecommunications services available for resale to requesting telecommunications carriers on terms and conditions that are reasonable and non-discriminatory.</P> <P>(b) A LEC must provide services to requesting telecommunications carriers for resale that are equal in quality, subject to the same conditions, and provided within the same provisioning time intervals that the LEC provides these services to others, including end users.</P> </SECTION> <SECTION> <SECTNO>§ 51.605</SECTNO> <SUBJECT>Additional obligations of incumbent local exchange carriers.</SUBJECT> <P>(a) An incumbent LEC shall offer to any requesting telecommunications carrier any telecommunications service that the incumbent LEC offers on a retail basis to subscribers that are not telecommunications carriers for resale at wholesale rates that are, at the election of the state commission—</P> <P>(1) Consistent with the avoided cost methodology described in §§ 51.607 and 51.609; or</P> <P>(2) Interim wholesale rates, pursuant to § 51.611.</P> <P>(b) For purposes of this subpart, exchange access services, as defined in section 3 of the Act, shall not be considered to be telecommunications services that incumbent LECs must make available for resale at wholesale rates to requesting telecommunications carriers.</P> <P>(c) For purposes of this subpart, advanced telecommunications services sold to Internet Service Providers as an input component to the Internet Service Providers' retail Internet service offering shall not be considered to be telecommunications services offered on a retail basis that incumbent LECs must make available for resale at wholesale rates to requesting telecommunications carriers.</P> <P>(d) Notwithstanding paragraph (b) of this section, advanced telecommunications services that are classified as exchange access services are subject to the obligations of paragraph (a) of this section if such services are sold on a retail basis to residential and business end-users that are not telecommunications carriers.</P> <P>(e) Except as provided in § 51.613, an incumbent LEC shall not impose restrictions on the resale by a requesting carrier of telecommunications services offered by the incumbent LEC.</P> <CITA>[61 FR 45619, Aug. 29, 1996, as amended at 65 FR 6915, Feb. 11, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 51.607</SECTNO> <SUBJECT>Wholesale pricing standard.</SUBJECT> <P>The wholesale rate that an incumbent LEC may charge for a telecommunications service provided for resale to other telecommunications carriers shall equal the rate for the telecommunications service, less avoided retail costs, as described in section 51.609. For purposes of this subpart, exchange access services, as defined in section 3 of the Act, shall not be considered to be telecommunications services that incumbent LECs must make available for resale at wholesale rates to requesting telecommunications carriers.</P> <CITA>[65 FR 6915, Feb. 11, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 51.609</SECTNO> <SUBJECT>Determination of avoided retail costs.</SUBJECT> <P>(a) Except as provided in § 51.611, the amount of avoided retail costs shall be determined on the basis of a cost study that complies with the requirements of this section.</P> <P>(b) Avoided retail costs shall be those costs that reasonably can be avoided when an incumbent LEC provides a telecommunications service for resale at wholesale rates to a requesting carrier.</P> <P>(c) For incumbent LECs that are designated as Class A companies under <PRTPAGE P="55"/>§ 32.11 of this chapter, except as provided in paragraph (d) of this section, avoided retail costs shall:</P> <P>(1) Include, as direct costs, the costs recorded in USOA accounts 6611 (product management), 6612 (sales), 6613 (product advertising), 6621 (call completion services), 6622 (number services), and 6623 (customer services) (§§ 32.6611, 32.6612, 32.6613, 32.6621, 32.6622, and 32.6623 of this chapter);</P> <P>(2) Include, as indirect costs, a portion of the costs recorded in USOA accounts 6121-6124 (general support expenses), 6711, 6712, 6721-6728 (corporate operations expenses), and 5301 (telecommunications uncollectibles) (§§ 32.6121-32.6124, 32.6711, 32.6712, 32.6721-32.6728, and 32.5301 of this chapter); and</P> <P>(3) Not include plant-specific expenses and plant non-specific expenses, other than general support expenses (§§ 32.6110-32.6116, 32.6210-32.6565 of this chapter).</P> <P>(d) Costs included in accounts 6611-6613 and 6621-6623 described in paragraph (c) of this section (§§ 32.6611-32.6613 and 32.6621-32.6623 of this chapter) may be included in wholesale rates only to the extent that the incumbent LEC proves to a state commission that specific costs in these accounts will be incurred and are not avoidable with respect to services sold at wholesale, or that specific costs in these accounts are not included in the retail prices of resold services. Costs included in accounts 6110-6116 and 6210-6565 described in paragraph (c) of this section (§§ 32.6110-32.6116, 32.6210-32.6565 of this chapter) may be treated as avoided retail costs, and excluded from wholesale rates, only to the extent that a party proves to a state commission that specific costs in these accounts can reasonably be avoided when an incumbent LEC provides a telecommunications service for resale to a requesting carrier.</P> <P>(e) For incumbent LECs that are designated as Class B companies under § 32.11 of this chapter and that record information in summary accounts instead of specific USOA accounts, the entire relevant summary accounts may be used in lieu of the specific USOA accounts listed in paragraphs (c) and (d) of this section.</P> </SECTION> <SECTION> <SECTNO>§ 51.611</SECTNO> <SUBJECT>Interim wholesale rates.</SUBJECT> <P>(a) If a state commission cannot, based on the information available to it, establish a wholesale rate using the methodology prescribed in § 51.609, then the state commission may elect to establish an interim wholesale rate as described in paragraph (b) of this section.</P> <P>(b) The state commission may establish interim wholesale rates that are at least 17 percent, and no more than 25 percent, below the incumbent LEC's existing retail rates, and shall articulate the basis for selecting a particular discount rate. The same discount percentage rate shall be used to establish interim wholesale rates for each telecommunications service.</P> <P>(c) A state commission that establishes interim wholesale rates shall, within a reasonable period of time thereafter, establish wholesale rates on the basis of an avoided retail cost study that complies with § 51.609.</P> </SECTION> <SECTION> <SECTNO>§ 51.613</SECTNO> <SUBJECT>Restrictions on resale.</SUBJECT> <P>(a) Notwithstanding § 51.605(b), the following types of restrictions on resale may be imposed:</P> <P>(1) <E T="03">Cross-class selling.</E> A state commission may permit an incumbent LEC to prohibit a requesting telecommunications carrier that purchases at wholesale rates for resale, telecommunications services that the incumbent LEC makes available only to residential customers or to a limited class of residential customers, from offering such services to classes of customers that are not eligible to subscribe to such services from the incumbent LEC.</P> <P>(2) <E T="03">Short term promotions.</E> An incumbent LEC shall apply the wholesale discount to the ordinary rate for a retail service rather than a special promotional rate only if:</P> <P>(i) Such promotions involve rates that will be in effect for no more than 90 days; and</P> <P>(ii) The incumbent LEC does not use such promotional offerings to evade the wholesale rate obligation, for example by making available a sequential series of 90-day promotional rates.</P> <P>(b) With respect to any restrictions on resale not permitted under paragraph (a), an incumbent LEC may impose a restriction only if it proves to <PRTPAGE P="56"/>the state commission that the restriction is reasonable and nondiscriminatory.</P> <P>(c) <E T="03">Branding.</E> Where operator, call completion, or directory assistance service is part of the service or service package an incumbent LEC offers for resale, failure by an incumbent LEC to comply with reseller unbranding or rebranding requests shall constitute a restriction on resale.</P> <P>(1) An incumbent LEC may impose such a restriction only if it proves to the state commission that the restriction is reasonable and nondiscriminatory, such as by proving to a state commission that the incumbent LEC lacks the capability to comply with unbranding or rebranding requests.</P> <P>(2) For purposes of this subpart, unbranding or rebranding shall mean that operator, call completion, or directory assistance services are offered in such a manner that an incumbent LEC's brand name or other identifying information is not identified to subscribers, or that such services are offered in such a manner that identifies to subscribers the requesting carrier's brand name or other identifying information.</P> </SECTION> <SECTION> <SECTNO>§ 51.615</SECTNO> <SUBJECT>Withdrawal of services.</SUBJECT> <P>When an incumbent LEC makes a telecommunications service available only to a limited group of customers that have purchased such a service in the past, the incumbent LEC must also make such a service available at wholesale rates to requesting carriers to offer on a resale basis to the same limited group of customers that have purchased such a service in the past.</P> </SECTION> <SECTION> <SECTNO>§ 51.617</SECTNO> <SUBJECT>Assessment of end user common line charge on resellers.</SUBJECT> <P>(a) Notwithstanding the provision in § 69.104(a) of this chapter that the end user common line charge be assessed upon end users, an incumbent LEC shall assess this charge, and the charge for changing the designated primary interexchange carrier, upon requesting carriers that purchase telephone exchange service for resale. The specific end user common line charge to be assessed will depend upon the identity of the end user served by the requesting carrier.</P> <P>(b) When an incumbent LEC provides telephone exchange service to a requesting carrier at wholesale rates for resale, the incumbent LEC shall continue to assess the interstate access charges provided in part 69 of this chapter, other than the end user common line charge, upon interexchange carriers that use the incumbent LEC's facilities to provide interstate or international telecommunications services to the interexchange carriers' subscribers.</P> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart H—Reciprocal Compensation for Transport and Termination of Local Telecommunications Traffic</HD> <SECTION> <SECTNO>§ 51.701</SECTNO> <SUBJECT>Scope of transport and termination pricing rules.</SUBJECT> <P>(a) The provisions of this subpart apply to reciprocal compensation for transport and termination of local telecommunications traffic between LECs and other telecommunications carriers.</P> <P>(b) <E T="03">Local telecommunications traffic.</E> For purposes of this subpart, local telecommunications traffic means:</P> <P>(1) Telecommunications traffic between a LEC and a telecommunications carrier other than a CMRS provider that originates and terminates within a local service area established by the state commission; or</P> <P>(2) Telecommunications traffic between a LEC and a CMRS provider that, at the beginning of the call, originates and terminates within the same Major Trading Area, as defined in § 24.202(a) of this chapter.</P> <P>(c) <E T="03">Transport.</E> For purposes of this subpart, transport is the transmission and any necessary tandem switching of local telecommunications traffic subject to section 251(b)(5) of the Act from the interconnection point between the two carriers to the terminating carrier's end office switch that directly serves the called party, or equivalent facility provided by a carrier other than an incumbent LEC.</P> <P>(d) <E T="03">Termination.</E> For purposes of this subpart, termination is the switching of local telecommunications traffic at the terminating carrier's end office <PRTPAGE P="57"/>switch, or equivalent facility, and delivery of such traffic to the called party's premises.</P> <P>(e) <E T="03">Reciprocal compensation.</E> For purposes of this subpart, a reciprocal compensation arrangement between two carriers is one in which each of the two carriers receives compensation from the other carrier for the transport and termination on each carrier's network facilities of local telecommunications traffic that originates on the network facilities of the other carrier.</P> </SECTION> <SECTION> <SECTNO>§ 51.703</SECTNO> <SUBJECT>Reciprocal compensation obligation of LECs.</SUBJECT> <P>(a) Each LEC shall establish reciprocal compensation arrangements for transport and termination of local telecommunications traffic with any requesting telecommunications carrier.</P> <P>(b) A LEC may not assess charges on any other telecommunications carrier for local telecommunications traffic that originates on the LEC's network.</P> </SECTION> <SECTION> <SECTNO>§ 51.705</SECTNO> <SUBJECT>Incumbent LECs' rates for transport and termination.</SUBJECT> <P>(a) An incumbent LEC's rates for transport and termination of local telecommunications traffic shall be established, at the election of the state commission, on the basis of:</P> <P>(1) The forward-looking economic costs of such offerings, using a cost study pursuant to §§ 51.505 and 51.511;</P> <P>(2) Default proxies, as provided in § 51.707; or</P> <P>(3) A bill-and-keep arrangement, as provided in § 51.713.</P> <P>(b) In cases where both carriers in a reciprocal compensation arrangement are incumbent LECs, state commissions shall establish the rates of the smaller carrier on the basis of the larger carrier's forward-looking costs, pursuant to § 51.711.</P> </SECTION> <SECTION> <SECTNO>§ 51.707</SECTNO> <SUBJECT>Default proxies for incumbent LECs' transport and termination rates.</SUBJECT> <P>(a) A state commission may determine that the cost information available to it with respect to transport and termination of local telecommunications traffic does not support the adoption of a rate or rates for an incumbent LEC that are consistent with the requirements of §§ 51.505 and 51.511. In that event, the state commission may establish rates for transport and termination of local telecommunications traffic, or for specific components included therein, that are consistent with the proxies specified in this section, provided that:</P> <P>(1) Any rate established through use of such proxies is superseded once that state commission establishes rates for transport and termination pursuant to §§ 51.705(a)(1) or 51.705(a)(3); and</P> <P>(2) The state commission sets forth in writing a reasonable basis for its selection of a particular proxy for transport and termination of local telecommunications traffic, or for specific components included within transport and termination.</P> <P>(b) If a state commission establishes rates for transport and termination of local telecommunications traffic on the basis of default proxies, such rates must meet the following requirements:</P> <P>(1) <E T="03">Termination.</E> The incumbent LEC's rates for the termination of local telecommunications traffic shall be no greater than 0.4 cents ($0.004) per minute, and no less than 0.2 cents ($0.002) per minute, except that, if a state commission has, before August 8, 1996, established a rate less than or equal to 0.5 cents ($0.005) per minute for such calls, that rate may be retained pending completion of a forward-looking economic cost study.</P> <P>(2) <E T="03">Transport</E>. The incumbent LEC's rates for the transport of local telecommunications traffic, under this section, shall comply with the proxies described in § 51.513(c) (3), (4), and (5) of this part that apply to the analogous unbundled network elements used in transporting a call to the end office that serves the called party.</P> <CITA>[61 FR 45619, Aug. 29, 1996, as amended at 61 FR 52709, Oct. 8, 1996]</CITA> </SECTION> <SECTION> <SECTNO>§ 51.709</SECTNO> <SUBJECT>Rate structure for transport and termination.</SUBJECT> <P>(a) In state proceedings, a state commission shall establish rates for the transport and termination of local telecommunications traffic that are structured consistently with the manner that carriers incur those costs, and consistently with the principles in §§ 51.507 and 51.509.<PRTPAGE P="58"/> </P> <P>(b) The rate of a carrier providing transmission facilities dedicated to the transmission of traffic between two carriers' networks shall recover only the costs of the proportion of that trunk capacity used by an interconnecting carrier to send traffic that will terminate on the providing carrier's network. Such proportions may be measured during peak periods.</P> </SECTION> <SECTION> <SECTNO>§ 51.711</SECTNO> <SUBJECT>Symmetrical reciprocal compensation.</SUBJECT> <P>(a) Rates for transport and termination of local telecommunications traffic shall be symmetrical, except as provided in paragraphs (b) and (c) of this section.</P> <P>(1) For purposes of this subpart, symmetrical rates are rates that a carrier other than an incumbent LEC assesses upon an incumbent LEC for transport and termination of local telecommunications traffic equal to those that the incumbent LEC assesses upon the other carrier for the same services.</P> <P>(2) In cases where both parties are incumbent LECs, or neither party is an incumbent LEC, a state commission shall establish the symmetrical rates for transport and termination based on the larger carrier's forward-looking costs.</P> <P>(3) Where the switch of a carrier other than an incumbent LEC serves a geographic area comparable to the area served by the incumbent LEC's tandem switch, the appropriate rate for the carrier other than an incumbent LEC is the incumbent LEC's tandem interconnection rate.</P> <P>(b) A state commission may establish asymmetrical rates for transport and termination of local telecommunications traffic only if the carrier other than the incumbent LEC (or the smaller of two incumbent LECs) proves to the state commission on the basis of a cost study using the forward-looking economic cost based pricing methodology described in §§ 51.505 and 51.511, that the forward-looking costs for a network efficiently configured and operated by the carrier other than the incumbent LEC (or the smaller of two incumbent LECs), exceed the costs incurred by the incumbent LEC (or the larger incumbent LEC), and, consequently, that such that a higher rate is justified.</P> <P>(c) Pending further proceedings before the Commission, a state commission shall establish the rates that licensees in the Paging and Radiotelephone Service (defined in part 22, subpart E of this chapter), Narrowband Personal Communications Services (defined in part 24, subpart D of this chapter), and Paging Operations in the Private Land Mobile Radio Services (defined in part 90, subpart P of this chapter) may assess upon other carriers for the transport and termination of local telecommunications traffic based on the forward-looking costs that such licensees incur in providing such services, pursuant to §§ 51.505 and 51.511. Such licensees' rates shall not be set based on the default proxies described in § 51.707.</P> </SECTION> <SECTION> <SECTNO>§ 51.713</SECTNO> <SUBJECT>Bill-and-keep arrangements for reciprocal compensation.</SUBJECT> <P>(a) For purposes of this subpart, bill-and-keep arrangements are those in which neither of the two interconnecting carriers charges the other for the termination of local telecommunications traffic that originates on the other carrier's network.</P> <P>(b) A state commission may impose bill-and-keep arrangements if the state commission determines that the amount of local telecommunications traffic from one network to the other is roughly balanced with the amount of local telecommunications traffic flowing in the opposite direction, and is expected to remain so, and no showing has been made pursuant to § 51.711(b).</P> <P>(c) Nothing in this section precludes a state commission from presuming that the amount of local telecommunications traffic from one network to the other is roughly balanced with the amount of local telecommunications traffic flowing in the opposite direction and is expected to remain so, unless a party rebuts such a presumption.</P> </SECTION> <SECTION> <SECTNO>§ 51.715</SECTNO> <SUBJECT>Interim transport and termination pricing.</SUBJECT> <P>(a) Upon request from a telecommunications carrier without an existing interconnection arrangement with an incumbent LEC, the incumbent <PRTPAGE P="59"/>LEC shall provide transport and termination of local telecommunications traffic immediately under an interim arrangement, pending resolution of negotiation or arbitration regarding transport and termination rates and approval of such rates by a state commission under sections 251 and 252 of the Act.</P> <P>(1) This requirement shall not apply when the requesting carrier has an existing interconnection arrangement that provides for the transport and termination of local telecommunications traffic by the incumbent LEC.</P> <P>(2) A telecommunications carrier may take advantage of such an interim arrangement only after it has requested negotiation with the incumbent LEC pursuant to § 51.301.</P> <P>(b) Upon receipt of a request as described in paragraph (a) of this section, an incumbent LEC must, without unreasonable delay, establish an interim arrangement for transport and termination of local telecommunications traffic at symmetrical rates.</P> <P>(1) In a state in which the state commission has established transport and termination rates based on forward-looking economic cost studies, an incumbent LEC shall use these state-determined rates as interim transport and termination rates.</P> <P>(2) In a state in which the state commission has established transport and termination rates consistent with the default price ranges and ceilings described in § 51.707, an incumbent LEC shall use these state-determined rates as interim rates.</P> <P>(3) In a state in which the state commission has neither established transport and termination rates based on forward-looking economic cost studies nor established transport and termination rates consistent with the default price ranges described in § 51.707, an incumbent LEC shall set interim transport and termination rates at the default ceilings for end-office switching (0.4 cents per minute of use), tandem switching (0.15 cents per minute of use), and transport (as described in § 51.707(b)(2)).</P> <P>(c) An interim arrangement shall cease to be in effect when one of the following occurs with respect to rates for transport and termination of local telecommunications traffic subject to the interim arrangement:</P> <P>(1) A voluntary agreement has been negotiated and approved by a state commission;</P> <P>(2) An agreement has been arbitrated and approved by a state commission; or</P> <P>(3) The period for requesting arbitration has passed with no such request.</P> <P>(d) If the rates for transport and termination of local telecommunications traffic in an interim arrangement differ from the rates established by a state commission pursuant to § 51.705, the state commission shall require carriers to make adjustments to past compensation. Such adjustments to past compensation shall allow each carrier to receive the level of compensation it would have received had the rates in the interim arrangement equalled the rates later established by the state commission pursuant to § 51.705.</P> </SECTION> <SECTION> <SECTNO>§ 51.717</SECTNO> <SUBJECT>Renegotiation of existing non-reciprocal arrangements.</SUBJECT> <P>(a) Any CMRS provider that operates under an arrangement with an incumbent LEC that was established before August 8, 1996 and that provides for non-reciprocal compensation for transport and termination of local telecommunications traffic is entitled to renegotiate these arrangements with no termination liability or other contract penalties.</P> <P>(b) From the date that a CMRS provider makes a request under paragraph (a) of this section until a new agreement has been either arbitrated or negotiated and has been approved by a state commission, the CMRS provider shall be entitled to assess upon the incumbent LEC the same rates for the transport and termination of local telecommunications traffic that the incumbent LEC assesses upon the CMRS provider pursuant to the pre-existing arrangement.</P> </SECTION> </SUBPART> <SUBPART> <PRTPAGE P="60"/> <HD SOURCE="HED">Subpart I—Procedures for Implementation of Section 252 of the Act</HD> <SECTION> <SECTNO>§ 51.801</SECTNO> <SUBJECT>Commission action upon a state commission's failure to act to carry out its responsibility under section 252 of the Act.</SUBJECT> <P>(a) If a state commission fails to act to carry out its responsibility under section 252 of the Act in any proceeding or other matter under section 252 of the Act, the Commission shall issue an order preempting the state commission's jurisdiction of that proceeding or matter within 90 days after being notified (or taking notice) of such failure, and shall assume the responsibility of the state commission under section 252 of the Act with respect to the proceeding or matter and shall act for the state commission.</P> <P>(b) For purposes of this part, a state commission fails to act if the state commission fails to respond, within a reasonable time, to a request for mediation, as provided for in section 252(a)(2) of the Act, or for a request for arbitration, as provided for in section 252(b) of the Act, or fails to complete an arbitration within the time limits established in section 252(b)(4)(C) of the Act.</P> <P>(c) A state shall not be deemed to have failed to act for purposes of section 252(e)(5) of the Act if an agreement is deemed approved under section 252(e)(4) of the Act.</P> </SECTION> <SECTION> <SECTNO>§ 51.803</SECTNO> <SUBJECT>Procedures for Commission notification of a state commission's failure to act.</SUBJECT> <P>(a) Any party seeking preemption of a state commission's jurisdiction, based on the state commission's failure to act, shall notify the Commission in accordance with following procedures:</P> <P>(1) Such party shall file with the Secretary of the Commission a petition, supported by an affidavit, that states with specificity the basis for the petition and any information that supports the claim that the state has failed to act, including, but not limited to, the applicable provisions of the Act and the factual circumstances supporting a finding that the state commission has failed to act;</P> <P>(2) Such party shall ensure that the state commission and the other parties to the proceeding or matter for which preemption is sought are served with the petition required in paragraph (a)(1) of this section on the same date that the petitioning party serves the petition on the Commission; and</P> <P>(3) Within fifteen days from the date of service of the petition required in paragraph (a)(1) of this section, the applicable state commission and parties to the proceeding may file with the Commission a response to the petition.</P> <P>(b) The party seeking preemption must prove that the state has failed to act to carry out its responsibilities under section 252 of the Act.</P> <P>(c) The Commission, pursuant to section 252(e)(5) of the Act, may take notice upon its own motion that a state commission has failed to act. In such a case, the Commission shall issue a public notice that the Commission has taken notice of a state commission's failure to act. The applicable state commission and the parties to a proceeding or matter in which the Commission has taken notice of the state commission's failure to act may file, within fifteen days of the issuance of the public notice, comments on whether the Commission is required to assume the responsibility of the state commission under section 252 of the Act with respect to the proceeding or matter.</P> <P>(d) The Commission shall issue an order determining whether it is required to preempt the state commission's jurisdiction of a proceeding or matter within 90 days after being notified under paragraph (a) of this section or taking notice under paragraph (c) of this section of a state commission's failure to carry out its responsibilities under section 252 of the Act.</P> </SECTION> <SECTION> <SECTNO>§ 51.805</SECTNO> <SUBJECT>The Commission's authority over proceedings and matters.</SUBJECT> <P>(a) If the Commission assumes responsibility for a proceeding or matter pursuant to section 252(e)(5) of the Act, the Commission shall retain jurisdiction over such proceeding or matter. At a minimum, the Commission shall approve or reject any interconnection agreement adopted by negotiation, mediation or arbitration for which the <PRTPAGE P="61"/>Commission, pursuant to section 252(e)(5) of the Act, has assumed the state's commission's responsibilities.</P> <P>(b) Agreements reached pursuant to mediation or arbitration by the Commission pursuant to section 252(e)(5) of the Act are not required to be submitted to the state commission for approval or rejection.</P> </SECTION> <SECTION> <SECTNO>§ 51.807</SECTNO> <SUBJECT>Arbitration and mediation of agreements by the Commission pursuant to section 252(e)(5) of the Act.</SUBJECT> <P>(a) The rules established in this section shall apply only to instances in which the Commission assumes jurisdiction under section 252(e)(5) of the Act.</P> <P>(b) When the Commission assumes responsibility for a proceeding or matter pursuant to section 252(e)(5) of the Act, it shall not be bound by state laws and standards that would have applied to the state commission in such proceeding or matter.</P> <P>(c) In resolving, by arbitration under section 252(b) of the Act, any open issues and in imposing conditions upon the parties to the agreement, the Commission shall:</P> <P>(1) Ensure that such resolution and conditions meet the requirements of section 251 of the Act, including the rules prescribed by the Commission pursuant to that section;</P> <P>(2) Establish any rates for interconnection, services, or network elements according to section 252(d) of the Act, including the rules prescribed by the Commission pursuant to that section; and</P> <P>(3) Provide a schedule for implementation of the terms and conditions by the parties to the agreement.</P> <P>(d) An arbitrator, acting pursuant to the Commission's authority under section 252(e)(5) of the Act, shall use final offer arbitration, except as otherwise provided in this section:</P> <P>(1) At the discretion of the arbitrator, final offer arbitration may take the form of either entire package final offer arbitration or issue-by-issue final offer arbitration.</P> <P>(2) Negotiations among the parties may continue, with or without the assistance of the arbitrator, after final arbitration offers are submitted. Parties may submit subsequent final offers following such negotiations.</P> <P>(3) To provide an opportunity for final post-offer negotiations, the arbitrator will not issue a decision for at least fifteen days after submission to the arbitrator of the final offers by the parties.</P> <P>(e) Final offers submitted by the parties to the arbitrator shall be consistent with section 251 of the Act, including the rules prescribed by the Commission pursuant to that section.</P> <P>(f) Each final offer shall:</P> <P>(1) Meet the requirements of section 251, including the rules prescribed by the Commission pursuant to that section;</P> <P>(2) Establish rates for interconnection, services, or access to unbundled network elements according to section 252(d) of the Act, including the rules prescribed by the Commission pursuant to that section; and</P> <P>(3) Provide a schedule for implementation of the terms and conditions by the parties to the agreement. If a final offer submitted by one or more parties fails to comply with the requirements of this section, the arbitrator has discretion to take steps designed to result in an arbitrated agreement that satisfies the requirements of section 252(c) of the Act, including requiring parties to submit new final offers within a time frame specified by the arbitrator, or adopting a result not submitted by any party that is consistent with the requirements of section 252(c) of the Act, and the rules prescribed by the Commission pursuant to that section.</P> <P>(g) Participation in the arbitration proceeding will be limited to the requesting telecommunications carrier and the incumbent LEC, except that the Commission will consider requests by third parties to file written pleadings.</P> <P>(h) Absent mutual consent of the parties to change any terms and conditions adopted by the arbitrator, the decision of the arbitrator shall be binding on the parties.</P> </SECTION> <SECTION> <PRTPAGE P="62"/> <SECTNO>§ 51.809</SECTNO> <SUBJECT>Availability of provisions of agreements to other telecommunications carriers under section 252(i) of the Act.</SUBJECT> <P>(a) An incumbent LEC shall make available without unreasonable delay to any requesting telecommunications carrier any individual interconnection, service, or network element arrangement contained in any agreement to which it is a party that is approved by a state commission pursuant to section 252 of the Act, upon the same rates, terms, and conditions as those provided in the agreement. An incumbent LEC may not limit the availability of any individual interconnection, service, or network element only to those requesting carriers serving a comparable class of subscribers or providing the same service (<E T="03">i.e.</E>, local, access, or interexchange) as the original party to the agreement.</P> <P>(b) The obligations of paragraph (a) of this section shall not apply where the incumbent LEC proves to the state commission that:</P> <P>(1) The costs of providing a particular interconnection, service, or element to the requesting telecommunications carrier are greater than the costs of providing it to the telecommunications carrier that originally negotiated the agreement, or</P> <P>(2) The provision of a particular interconnection, service, or element to the requesting carrier is not technically feasible.</P> <P>(c) Individual interconnection, service, or network element arrangements shall remain available for use by telecommunications carriers pursuant to this section for a reasonable period of time after the approved agreement is available for public inspection under section 252(f) of the Act.</P> </SECTION> </SUBPART> <PART> <EAR>Pt. 52</EAR> <HD SOURCE="HED">PART 52—NUMBERING</HD> <CONTENTS> <SUBPART> <HD SOURCE="HED">Subpart A—Scope and Authority</HD> <SECHD>Sec.</SECHD> <SECTNO>52.1</SECTNO> <SUBJECT>Basis and purpose.</SUBJECT> <SECTNO>52.3</SECTNO> <SUBJECT>General.</SUBJECT> <SECTNO>52.5</SECTNO> <SUBJECT>Definitions.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart B—Administration</HD> <SECTNO>52.7</SECTNO> <SUBJECT>Definitions.</SUBJECT> <SECTNO>52.9</SECTNO> <SUBJECT>General requirements.</SUBJECT> <SECTNO>52.11</SECTNO> <SUBJECT>North American Numbering Council.</SUBJECT> <SECTNO>52.12</SECTNO> <SUBJECT>North American Numbering Plan Administrator and B&C Agent.</SUBJECT> <SECTNO>52.13</SECTNO> <SUBJECT>North American Numbering Plan Administrator.</SUBJECT> <SECTNO>52.15</SECTNO> <SUBJECT>Central office code administration.</SUBJECT> <SECTNO>52.16</SECTNO> <SUBJECT>Billing and Collection Agent.</SUBJECT> <SECTNO>52.17</SECTNO> <SUBJECT>Costs of number administration.</SUBJECT> <SECTNO>52.19</SECTNO> <SUBJECT>Area code relief.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart C—Number Portability</HD> <SECTNO>52.20</SECTNO> <SUBJECT>Thousands-block number pooling.</SUBJECT> <SECTNO>52.21</SECTNO> <SUBJECT>Definitions.</SUBJECT> <SECTNO>52.23</SECTNO> <SUBJECT>Deployment of long-term database methods for number portability by LECs.</SUBJECT> <SECTNO>52.25</SECTNO> <SUBJECT>Database architecture and administration.</SUBJECT> <SECTNO>52.26</SECTNO> <SUBJECT>NANC Recommendations on Local Number Portability Administration.</SUBJECT> <SECTNO>52.27</SECTNO> <SUBJECT>Deployment of transitional measures for number portability.</SUBJECT> <SECTNO>52.29</SECTNO> <SUBJECT>Cost recovery for transitional measures for number portability.</SUBJECT> <SECTNO>52.31</SECTNO> <SUBJECT>Deployment of long-term database methods for number portability by CMRS providers.</SUBJECT> <SECTNO>52.32</SECTNO> <SUBJECT>Allocation of the shared costs of long-term number portability.</SUBJECT> <SECTNO>52.33</SECTNO> <SUBJECT>Recovery of carrier-specific costs directly related to providing long-term number portability.</SUBJECT> <SECTNO>52.34-52.99</SECTNO> <SUBJECT>[Reserved]</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart D—Toll Free Numbers</HD> <SECTNO>52.101</SECTNO> <SUBJECT>General definitions.</SUBJECT> <SECTNO>52.103</SECTNO> <SUBJECT>Lag times.</SUBJECT> <SECTNO>52.105</SECTNO> <SUBJECT>Warehousing.</SUBJECT> <SECTNO>52.107</SECTNO> <SUBJECT>Hoarding.</SUBJECT> <SECTNO>52.109</SECTNO> <SUBJECT>Permanent cap on number reservations.</SUBJECT> <APP>Appendix to Part 52—Deployment Schedule for Long-Term Database Methods for Local Number Portability</APP> </SUBPART> </CONTENTS> <AUTH> <HD SOURCE="HED">Authority:</HD> <P>Sec. 1, 2, 4, 5, 48 Stat. 1066, as amended; 47 U.S.C. § 151, 152, 154, 155 unless otherwise noted. Interpret or apply secs. 3, 4, 201-05, 207-09, 218, 225-7, 251-2, 271 and 332, 48 Stat. 1070, as amended, 1077; 47 U.S.C. 153, 154, 201-05, 207-09, 218, 225-7, 251-2, 271 and 332 unless otherwise noted.</P> </AUTH> <SOURCE> <HD SOURCE="HED">Source:</HD> <P>61 FR 38637, July 25, 1996, unless otherwise noted.</P> </SOURCE> <SUBPART> <HD SOURCE="HED">Subpart A—Scope and Authority</HD> <SOURCE> <HD SOURCE="HED">Source:</HD> <P>61 FR 47353, Sept. 6, 1996, unless otherwise noted.</P> </SOURCE> <SECTION> <SECTNO>§ 52.1</SECTNO> <SUBJECT>Basis and purpose.</SUBJECT> <P>(a) <E T="03">Basis.</E> These rules are issued pursuant to the Communications Act of 1934, as amended, 47 U.S.C. 151 <E T="03">et. seq.</E> <PRTPAGE P="63"/> </P> <P>(b) <E T="03">Purpose.</E> The purpose of these rules is to establish, for the United States, requirements and conditions for the administration and use of telecommunications numbers for provision of telecommunications services.</P> </SECTION> <SECTION> <SECTNO>§ 52.3</SECTNO> <SUBJECT>General.</SUBJECT> <P>The Commission shall have exclusive authority over those portions of the North American Numbering Plan (NANP) that pertain to the United States. The Commission may delegate to the States or other entities any portion of such jurisdiction.</P> </SECTION> <SECTION> <SECTNO>§ 52.5</SECTNO> <SUBJECT>Definitions.</SUBJECT> <P>As used in this part:</P> <P>(a) <E T="03">Incumbent local exchange carrier.</E> With respect to an area, an “incumbent local exchange carrier” is a local exchange carrier that:</P> <P>(1) On February 8, 1996, provided telephone exchange service in such area; and</P> <P>(2)(i) On February 8, 1996, was deemed to be a member of the exchange carrier association pursuant to § 69.601(b) of this chapter (47 CFR 69.601(b)); or</P> <P>(ii) Is a person or entity that, on or after February 8, 1996, became a successor or assign of a member described in paragraph (a)(2)(i) of this section.</P> <P>(b) <E T="03">North American Numbering Council</E> (NANC). The “North American Numbering Council” is an advisory committee created under the Federal Advisory Committee Act, 5 U.S.C., App (1988), to advise the Commission and to make recommendations, reached through consensus, that foster efficient and impartial number administration.</P> <P>(c) <E T="03">North American Numbering Plan</E> (NANP). The “North American Numbering Plan” is the basic numbering scheme for the telecommunications networks located in Anguilla, Antigua, Bahamas, Barbados, Bermuda, British Virgin Islands, Canada, Cayman Islands, Dominica, Dominican Republic, Grenada, Jamaica, Montserrat, St. Kitts & Nevis, St. Lucia, St. Vincent, Turks & Caicos Islands, Trinidad & Tobago, and the United States (including Puerto Rico, the U.S. Virgin Islands, Guam and the Commonwealth of the Northern Mariana Islands).</P> <P>(d) <E T="03">State.</E> The term “state” includes the District of Columbia and the Territories and possessions.</P> <P>(e) <E T="03">State commission.</E> The term “state commission” means the commission, board, or official (by whatever name designated) which under the laws of any state has regulatory jurisdiction with respect to intrastate operations of carriers.</P> <P>(f) <E T="03">Telecommunications.</E> “Telecommunications” means the transmission, between or among points specified by the user, of information of the user's choosing, without change in the form or content of the information as sent and received.</P> <P>(g) <E T="03">Telecommunications carrier.</E> A “telecommunications carrier” is any provider of telecommunications services, except that such term does not include aggregators of telecommunications services (as defined in 47 U.S.C. 226(a)(2)).</P> <P>(h) <E T="03">Telecommunications service.</E> The term “telecommunications service” refers to the offering of telecommunications for a fee directly to the public, or to such classes of users as to be effectively available directly to the public, regardless of the facilities used.</P> <P>(i) <E T="03">Service provider. </E>The term “service provider” refers to a telecommunications carrier or other entity that receives numbering resources from the NANPA, a Pooling Administrator or a telecommunications carrier for the purpose of providing or establishing telecommunications service.</P> <CITA>[61 FR 47353, Sept. 6, 1996, as amended at 65 FR 37707, June 16, 2000]</CITA> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart B—Administration</HD> <SOURCE> <HD SOURCE="HED">Source:</HD> <P>61 FR 47353, Sept. 6, 1996, unless otherwise noted.</P> </SOURCE> <SECTION> <SECTNO>§ 52.7</SECTNO> <SUBJECT>Definitions.</SUBJECT> <P>As used in this subpart:</P> <P>(a) <E T="03">Area code or numbering plan area</E> (NPA). The term “area code or numbering plan area” refers to the first three digits (NXX) of a ten-digit telephone number in the form NXX-NXX-XXXX, where N represents any one of the numbers 2 through 9 and X represents any one of the numbers 0 through 9.<PRTPAGE P="64"/> </P> <P>(b) <E T="03">Area code relief</E>. The term “area code relief” refers to the process by which central office codes are made available when there are few or no unassigned central office codes remaining in an existing area code and a new area code is introduced. Area code relief includes planning for area code “jeopardy,” which is a situation where central office codes may become exhausted before an area code relief plan can be implemented.</P> <P>(c) <E T="03">Central office (CO) code.</E> The term “central office code” refers to the second three digits (NXX) of a ten-digit telephone number in the form NXX-NXX-XXXX, where N represents any one of the numbers 2 through 9 and X represents any one of the numbers 0 through 9.</P> <P>(d) <E T="03">Central office (CO) code administrator.</E> The term “central office code administrator” refers to the entity or entities responsible for managing central office codes in each area code.</P> <P>(e) <E T="03">North American Numbering Plan Administrator</E> (NANPA). The term “North American Numbering Plan Administrator” refers to the entity or entities responsible for managing the NANP.</P> <P>(f) <E T="03">Billing and Collection Agent</E>. The term “Billing & Collection Agent” (“B&C Agent”) refers to the entity responsible for the collection of funds to support numbering administration for telecommunications services from the United States telecommunications industry and NANP member countries.</P> <P>(g) <E T="03">Pooling Administrator (PA). </E>The term “Pooling Administrator” refers to the entity or entities responsible for administering a thousands-block number pool.</P> <P>(h) <E T="03">Contamination. </E>Contamination occurs when at least one telephone number within a block of telephone numbers is not available for assignment to end users or customers. For purposes of this provision, a telephone number is “not available for assignment” if it is classified as administrative, aging, assigned, intermediate, or reserved as defined in § 52.15(f)(1).</P> <P>(i) <E T="03">Donation. </E>The term “donation” refers to the process by which carriers are required to contribute telephone numbers to a thousands-block number pool.</P> <P>(j) <E T="03">Inventory. </E>The term “inventory” refers to all telephone numbers distributed, assigned or allocated:</P> <P>(1) To a service provider; or</P> <P>(2) To a pooling administrator for the purpose of establishing or maintaining a thousands-block number pool.</P> <CITA>[61 FR 47353, Sept. 6, 1996, as amended at 62 FR 55180, Oct. 23, 1997; 65 FR 37707, June 16, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 52.9</SECTNO> <SUBJECT>General requirements.</SUBJECT> <P>(a) To ensure that telecommunications numbers are made available on an equitable basis, the administration of telecommunications numbers shall, in addition to the specific requirements set forth in this subpart:</P> <P>(1) Facilitate entry into the telecommunications marketplace by making telecommunications numbering resources available on an efficient, timely basis to telecommunications carriers;</P> <P>(2) Not unduly favor or disfavor any particular telecommunications industry segment or group of telecommunications consumers; and</P> <P>(3) Not unduly favor one telecommunications technology over another.</P> <P>(b) If the Commission delegates any telecommunications numbering administration functions to any State or other entity pursuant to 47 U.S.C. 251(e)(1), such State or entity shall perform these functions in a manner consistent with this part.</P> </SECTION> <SECTION> <SECTNO>§ 52.11</SECTNO> <SUBJECT>North American Numbering Council.</SUBJECT> <P>The duties of the North American Numbering Council (NANC), may include, but are not limited to:</P> <P>(a) Advising the Commission on policy matters relating to the administration of the NANP in the United States;</P> <P>(b) Making recommendations, reached through consensus, that foster efficient and impartial number administration;</P> <P>(c) Initially resolving disputes, through consensus, that foster efficient and impartial number administration in the United States by adopting and utilizing dispute resolution procedures that provide disputants, regulators, and the public notice of the matters at issue, a reasonable opportunity to <PRTPAGE P="65"/>make oral and written presentations, a reasoned recommended solution, and a written report summarizing the recommendation and the reasons therefore;</P> <P>(d) Recommending to the Commission an appropriate entity to serve as the NANPA;</P> <P>(e) Recommending to the Commission an appropriate mechanism for recovering the costs of NANP administration in the United States, consistent with § 52.17;</P> <P>(f) Carrying out the duties described in § 52.25; and</P> <P>(g) Carrying out this part as directed by the Commission;</P> <P>(h) Monitoring the performance of the NANPA and the B&C Agent on at least an annual basis; and</P> <P>(i) Implementing, at the direction of the Commission, any action necessary to correct identified problems with the performance of the NANPA and the B&C Agent, as deemed necessary.</P> <CITA>[61 FR 47353, Sept. 6, 1996, as amended at 62 FR 55180, Oct. 23, 1997]</CITA> </SECTION> <SECTION> <SECTNO>§ 52.12</SECTNO> <SUBJECT>North American Numbering Plan Administrator and B&C Agent.</SUBJECT> <P>The North American Numbering Plan Administrator (“NANPA”) and the associated “B&C Agent” will conduct their respective operations in accordance with this section. The NANPA and the B&C Agent will conduct their respective operations with oversight from the Federal Communications Commission (the “Commission”) and with recommendations from the North American Numbering Council (“NANC”).</P> <P>(a)(1) <E T="03">Neutrality</E>. The NANPA and the B&C Agent shall be non-governmental entities that are impartial and not aligned with any particular telecommunication industry segment. Accordingly, while conducting their respective operations under this section, the NANPA and B&C Agent shall ensure that they comply with the following neutrality criteria:</P> <P>(i) The NANPA and B&C Agent may not be an affiliate of any telecommunications service provider(s) as defined in the Telecommunications Act of 1996. “Affiliate” is a person who controls, is controlled by, or is under the direct or indirect common control with another person. A person shall be deemed to control another if such person possesses, directly or indirectly—</P> <P>(A) An equity interest by stock, partnership (general or limited) interest, joint venture participation, or member interest in the other person ten (10%) percent or more of the total outstanding equity interests in the other person, or</P> <P>(B) The power to vote ten (10%) percent or more of the securities (by stock, partnership (general or limited) interest, joint venture participation, or member interest) having ordinary voting power for the election of directors, general partner, or management of such other person, or</P> <P>(C) The power to direct or cause the direction of the management and policies of such other person, whether through the ownership of or right to vote voting rights attributable to the stock, partnership (general or limited) interest, joint venture participation, or member interest) of such other person, by contract (including but not limited to stockholder agreement, partnership (general or limited) agreement, joint venture agreement, or operating agreement), or otherwise;</P> <P>(ii) The NANPA and B&C Agent, and any affiliate thereof, may not issue a majority of its debt to, nor may it derive a majority of its revenues from, any telecommunications service provider. “Majority” shall mean greater than 50 percent, and “debt” shall mean stocks, bonds, securities, notes, loans or any other instrument of indebtedness; and</P> <P>(iii) Notwithstanding the neutrality criteria set forth in paragraphs (a)(1) (i) and (ii) of this section, the NANPA and B&C Agent may be determined to be or not to be subject to undue influence by parties with a vested interest in the outcome of numbering administration and activities. NANC may conduct an evaluation to determine whether the NANPA and B&C Agent meet the undue influence criterion.</P> <P>(2) Any subcontractor that performs—</P> <P>(i) NANP administration and central office code administration, or</P> <P>(ii) Billing and Collection functions, for the NANPA or for the B&C Agent <PRTPAGE P="66"/>must also meet the neutrality criteria described in paragraph (a)(1).</P> <P>(b) <E T="03">Term of administration.</E> The NANPA shall provide numbering administration, including central office code administration, for the United States portion of the North American Numbering Plan (“NANP”) for an initial period of five (5) years. At any time prior to the termination of the initial or subsequent term of administration, such term may be renewed for up to five (5) years with the approval of the Commission and the agreement of the NANPA. The B&C Agent shall provide billing and collection functions for an initial period of five (5) years. At any time prior to the termination of the initial or subsequent term of administration, such term may be renewed for up to five (5) years with the approval of the Commission and the agreement of the B&C Agent.</P> <P>(c) <E T="03">Changes to regulations, rules, guidelines or directives.</E> In the event that regulatory authorities or industry groups (including, for example, the Industry Numbering Committee—INC, or its successor) issue rules, requirements, guidelines or policy directives which may affect the functions performed by the NANPA and the B&C Agent, the NANPA and the B&C Agent shall, within 10 business days from the date of official notice of such rules, requirements, guidelines or policy directives, assess the impact on its operations and advise the Commission of any changes required. NANPA and the B&C Agent shall provide written explanation why such changes are required. To the extent the Commission deems such changes are necessary, the Commission will recommend to the NANP member countries appropriate cost recovery adjustments, if necessary.</P> <P>(d) <E T="03">Performance review process.</E> NANPA and the B&C Agent shall develop and implement an internal, documented performance monitoring mechanism and shall provide such performance review on request of the Commission on at least an annual basis. The annual assessment process will not preclude telecommunications industry participants from identifying performance problems to the NANPA, the B&C Agent and the NANC as they occur, and from seeking expeditious resolution. If performance problems are identified by a telecommunications industry participant, the NANC, B&C Agent or NANPA shall investigate and report within 10 business days of notice to the participant of corrective action, if any, taken or to be taken. The NANPA, B&C Agent or NANC (as appropriate) shall be permitted reasonable time to take corrective action, including the necessity of obtaining the required consent of the Commission.</P> <P>(e) <E T="03">Termination.</E> If the Commission determines at any time that the NANPA or the B&C Agent fails to comply with the neutrality criteria set forth in paragraph (a) of this section or substantially or materially defaults in the performance of its obligations, the Commission shall advise immediately the NANPA or the B&C Agent of said failure or default, request immediate corrective action, and permit the NANPA or B&C Agent reasonable time to correct such failure or default. If the NANPA or B&C Agent is unwilling or unable to take corrective action, the Commission may, in a manner consistent with the requirements of the Administrative Procedure Act and the Communications Act of 1934, as amended, take any action that it deems appropriate, including termination of the NANPA's or B&C Agent's term of administration.</P> <P>(f) <E T="03">Required and optional enterprise services.</E> Enterprise Services, which are services beyond those described in § 52.13 that may be provided by the new NANPA for specified fees, may be offered with prior approval of the Commission.</P> <P>(1) <E T="03">Required Enterprise Services.</E> At the request of a code holder, the NANPA shall, in accordance with industry standards and for reasonable fees, enter certain routing and rating information, into the industry-approved database(s) for dissemination of such information. This task shall include reviewing the information and assisting in its preparation.</P> <P>(2) <E T="03">Optional Enterprise Services.</E> The NANPA may, subject to prior approval and for reasonable fees, offer “Optional Enterprise Services” which are any services not described elsewhere in this section.<PRTPAGE P="67"/> </P> <P>(3) <E T="03">Annual report.</E> NANPA shall identify and record all direct costs associated with providing Enterprise Services separately from the costs associated with the non-enterprise NANPA functions. The NANPA shall submit an annual report to the NANC summarizing the revenues and costs for providing each Enterprise Service. NANPA shall be audited by an independent auditor after the first year of operations and every two years thereafter, and submit the report to the Commission for appropriate review and action.</P> <CITA>[63 FR 55180, Oct. 23, 1997]</CITA> </SECTION> <SECTION> <SECTNO>§ 52.13</SECTNO> <SUBJECT>North American Numbering Plan Administrator.</SUBJECT> <P>(a) The North American Numbering Plan Administrator (NANPA) shall be an independent and impartial non-government entity.</P> <P>(b) The NANPA shall administer the numbering resources identified in paragraph (d) of this section. It shall assign and administer NANP resources in an efficient, effective, fair, unbiased, and non-discriminatory manner consistent with industry-developed guidelines and Commission regulations. It shall support the industry's efforts to accommodate current and future numbering needs. It shall perform additional functions, including but not limited to:</P> <P>(1) Ensuring the efficient and effective administration and assignment of numbering resources by performing day-to-day number resource assignment and administrative activities;</P> <P>(2) Planning for the long-term need for NANP resources to ensure the continued viability of the NANP by implementing a plan for number resource administration that uses effective forecasting and management skills in order to make the industry aware of the availability of numbering resources and to meet the current and future needs of the industry;</P> <P>(3) Complying with guidelines of the North American Industry Numbering Committee (INC) or its successor, related industry documentation, Commission regulations and orders, and the guidelines of other appropriate policy-making authorities, all of which may be modified by industry fora or other appropriate authority;</P> <P>(4) Providing management supervision for all of the services it provides, including responsibility for achieving performance measures established by the NANC and the INC in industry guidelines;</P> <P>(5) Participating in the NANC annual performance review as described in §§ 52.11 and 52.12;</P> <P>(6) Establishing and maintaining relationships with current governmental and regulatory bodies, and their successors, including the United States Federal Communications Commission, Industry Canada, the Canadian Radio-television and Telecommunications Commission, and other United States, Canadian, and Caribbean numbering authorities and regulatory agencies, and addressing policy directives from these bodies;</P> <P>(7) Cooperating with and actively participating in numbering standards bodies and industry fora, such as INC and, upon request, the Canadian Steering Committee on Numbering (CSCN);</P> <P>(8) Representing the NANP to national and international numbering bodies;</P> <P>(9) Developing and maintaining communications channels with other countries who also participate in the NANP to ensure that numbering needs of all countries served by the NANP are met;</P> <P>(10) Attending United States Study Group A meetings and maintaining a working knowledge of Study Group 2 International Telecommunications Union activities on behalf of the United States telecommunications industry;</P> <P>(11) Reviewing requests for all numbering resources to implement new applications and services and making assignments in accordance with industry-developed resource planning and assignment guidelines;</P> <P>(12) Referring requests for particular numbering resources to the appropriate industry body where guidelines do not exist for those resources;</P> <P>(13) Participating in industry activities to determine whether, when new telecommunications services requiring numbers are proposed, NANP numbers are appropriate and what level of resource is required (e.g. line numbers, central office codes, NPA codes);<PRTPAGE P="68"/> </P> <P>(14) Maintaining necessary administrative staff to handle the legal, financial, technical, staffing, industry, and regulatory issues relevant to the management of all numbering resources, as well as maintaining the necessary equipment, facilities, and proper billing arrangements associated with day-to-day management of all numbering resources;</P> <P>(15) Managing the NANP in accordance with published guidelines adopted in conjunction with the industry and the appropriate NANP member countries' governing agencies, and referring issues to the appropriate industry body for resolution when they have not been addressed by the industry;</P> <P>(16) Responding to requests from the industry and from regulators for information about the NANP and its administration, as the primary repository for numbering information in the industry;</P> <P>(17) Providing upon request information regarding how to obtain current documents related to NANP administration;</P> <P>(18) Providing assistance to users of numbering resources and suggesting numbering administration options, when possible, that will optimize number resource utilization;</P> <P>(19) Coordinating its numbering resource activities with the Canadian Number Administrator and other NANP member countries' administrators to ensure efficient and effective management of NANP numbering resources; and</P> <P>(20) Determining the final allocation methodology for sharing costs between NANP countries.</P> <P>(c) In performing the functions outlined in paragraph (b) of this section, the NANPA shall:</P> <P>(1) Ensure that the interests of all NANP member countries are considered;</P> <P>(2) Assess fairly requests for assignments of NANP numbering resources and ensure the assignment of numbering resources to appropriate service providers;</P> <P>(3) Develop, operate and maintain the computer hardware, software (database) and mechanized systems required to perform the NANPA and central office (CO) Code Administration functions;</P> <P>(4) Manage projects such as Numbering Plan Area (NPA) relief (area code relief) planning and the Central Office Code Utilization Survey (COCUS);</P> <P>(5) Facilitate NPA relief planning meetings;</P> <P>(6) Participate in appropriate industry activities;</P> <P>(7) Manage proprietary data and competitively sensitive information and maintain the confidentiality thereof;</P> <P>(8) Act as an information resource for the industry concerning all aspects of numbering (i.e., knowledge and experience in numbering resource issues, International Telecommunications Union (ITU) Recommendation E.164, the North American Numbering Plan (NANP), NANP Administration, INC, NANP area country regulatory issues affecting numbering, number resource assignment guidelines, central office code administration, relief planning, international numbering issues, etc.); and</P> <P>(9) Ensure that any action taken with respect to number administration is consistent with this part.</P> <P>(d) The NANPA and, to the extent applicable, the B&C Agent, shall administer numbering resources in an efficient and non-discriminatory manner, in accordance with Commission rules and regulations and the guidelines developed by the INC and other industry groups pertaining to administration and assignment of numbering resources, including, but not limited to:</P> <P>(1) Numbering Plan Area (NPA) codes,</P> <P>(2) Central Office codes for the 809 area,</P> <P>(3) International Inbound NPA 456 NXX codes,</P> <P>(4) (NPA) 500 NXX codes,</P> <P>(5) (NPA) 900 NXX codes,</P> <P>(6) N11 Service codes,</P> <P>(7) 855-XXXX line numbers,</P> <P>(8) 555-XXXX line numbers,</P> <P>(9) Carrier Identification Codes,</P> <P>(10) Vertical Service Codes,</P> <P>(11) ANI Information Integer (II) Digit Pairs,</P> <P>(12) Non Dialable Toll Points, and</P> <P>(13) New numbering resources as may be defined.<PRTPAGE P="69"/> </P> <P>(e) <E T="03">Relationships with other NANP member countries' administrators and authorities</E>. The NANPA shall address policy directives from other NANP member countries' governmental and regulatory authorities and coordinate its activities with other NANP member countries' administrators, if any, to ensure efficient and effective management of NANP resources.</P> <P>(f) <E T="03">Transition plan</E>. The NANPA shall implement a transition plan, subject to Commission approval, leading to its assumption of NANPA functions within 90 days of the effective date of a Commission order announcing the selection of the NANPA.</P> <P>(g) <E T="03">Transfer of intellectual property</E>. The new NANPA must make available any and all intellectual property and associated hardware resulting from its activities as numbering administrator including, but not limited to, systems and the data contained therein, software, interface specifications and supporting documentation and make such property available to whomever NANC directs free of charge. The new NANPA must specify any intellectual property it proposes to exclude from the provisions of this paragraph based on the existence of such property prior to its selection as NANPA.</P> <CITA>[61 FR 47353, Sept. 6, 1996, as amended at 62 FR 55181, Oct. 23, 1997]</CITA> </SECTION> <SECTION> <SECTNO>§ 52.15</SECTNO> <SUBJECT>Central office code administration.</SUBJECT> <P>(a) Central Office Code Administration shall be performed by the NANPA, or another entity or entities, as designated by the Commission.</P> <P>(b) Duties of the entity or entities performing central office code administration may include, but are not limited to:</P> <P>(1) Processing central office code assignment applications and assigning such codes in a manner that is consistent with this part;</P> <P>(2) Accessing and maintaining central office code assignment databases;</P> <P>(3) Contributing to the CO Code Use Survey (COCUS), an annual survey that describes the present and projected use of CO codes for each NPA in the NANP;</P> <P>(4) Monitoring the use of central office codes within each area code and forecasting the date by which all central office codes within that area code will be assigned; and</P> <P>(5) Planning for and initiating area code relief, consistent with § 52.19.</P> <P>(c) Any telecommunications carrier performing central office code administration:</P> <P>(1) Shall not charge fees for the assignment or use of central office codes to other telecommunications carriers, including paging and CMRS providers, unless the telecommunications carrier assigning the central office code charges one uniform fee for all carriers, including itself and its affiliates; and</P> <P>(2) Shall, consistent with this subpart, apply identical standards and procedures for processing all central office code assignment requests, and for assigning such codes, regardless of the identity of the telecommunications carrier making the request.</P> <P>(d) <E T="03">Central Office (CO) Code Administration functional requirements</E>. The NANPA shall manage the United States CO code numbering resource, including CO code request processing, NPA code relief and jeopardy planning, and industry notification functions. The NANPA shall perform its CO Code Administration functions in accordance with the published industry numbering resource administration guidelines and Commission orders and regulations at 47 CFR chapter I. Subject to the approval of the Commission, the NANPA shall develop a transition plan to transfer CO code assignment from the current administrators to itself and shall submit this plan to the Commission within 90 days of the effective date of a Commission order announcing the selection of the NANPA. The NANPA shall complete the transfer of CO code assignment functions from existing administrators to itself no more than 18 months after the NANPA has assumed all of said administrators' current NANPA function.</P> <P>(e) The new NANPA shall perform the numbering administration functions currently performed by Bellcore, and the CO code administration functions currently performed by the eleven CO code administrators, at the price agreed to at the time of its selection. The new NANPA may request from <PRTPAGE P="70"/>NANC, with subsequent approval by the Commission, an adjustment in this price if the actual number of CO Code assignments made per year, the number of NPAs requiring relief per year or the number of NPA relief meetings per NPA exceeds 120% of the NANPA's stated assumptions for the tasks at the time of its selection.</P> <P>(f) <E T="03">Mandatory reporting requirements—</E>(1) <E T="03">Number use categories.</E> Numbering resources must be classified in one of the following categories:</P> <P>(i) <E T="03">Administrative numbers </E>are numbers used by telecommunications carriers to perform internal administrative or operational functions necessary to maintain reasonable quality of service standards.</P> <P>(ii) <E T="03">Aging numbers</E> are disconnected numbers that are not available for assignment to another end user or customer for a specified period of time. Numbers previously assigned to residential customers may be aged for no more than 90 days. Numbers previously assigned to business customers may be aged for no more than 360 days.</P> <P>(iii) <E T="03">Assigned numbers </E>are numbers working in the Public Switched Telephone Network under an agreement such as a contract or tariff at the request of specific end users or customers for their use, or numbers not yet working but having a customer service order pending. Numbers that are not yet working and have a service order pending for more than five days shall not be classified as assigned numbers.</P> <P>(iv) <E T="03">Available numbers </E>are numbers that are available for assignment to subscriber access lines, or their equivalents, within a switching entity or point of interconnection and are not classified as assigned, intermediate, administrative, aging, or reserved.</P> <P>(v) <E T="03">Intermediate numbers </E>are numbers that are made available for use by another telecommunications carrier or non-carrier entity for the purpose of providing telecommunications service to an end user or customer. Numbers ported for the purpose of transferring an established customer's service to another service provider shall not be classified as intermediate numbers.</P> <P>(vi) <E T="03">Reserved numbers </E>are numbers that are held by service providers at the request of specific end users or customers for their future use. Numbers held for specific end users or customers for more than 45 days shall not be classified as reserved numbers.</P> <P>(2) <E T="03">Reporting carrier. </E>The term “reporting carrier” refers to a telecommunications carrier that receives numbering resources from the NANPA, a Pooling Administrator or another telecommunications carrier.</P> <P>(3) <E T="03">Data collection procedures. </E>(i) Reporting carriers shall report utilization and forecast data to the NANPA.</P> <P>(ii) Reporting shall be by separate legal entity and must include company name, company headquarters address, OCN, parent company OCN(s), and the primary type of business for which the numbers are being used.</P> <P>(iii) All data shall be filed electronically in a format approved by the Common Carrier Bureau.</P> <P>(4) <E T="03">Forecast data reporting. </E>(i) Reporting carriers shall submit to the NANPA a five-year forecast of their yearly numbering resource requirements.</P> <P>(ii) In areas where thousands-block number pooling has been implemented:</P> <P>(A) Reporting carriers that are required to participate in thousands-block number pooling shall report forecast data at the thousands-block (NXX-X) level per rate center;</P> <P>(B) Reporting carriers that are not required to participate in thousands-block number pooling shall report forecast data at the central office code (NXX) level per rate center.</P> <P>(iii) In areas where thousands-block number pooling has not been implemented, reporting carriers shall report forecast data at the central office code (NXX) level per NPA.</P> <P>(iv) Reporting carriers shall identify and report separately initial numbering resources and growth numbering resources.</P> <P>(5) <E T="03">Utilization data reporting. </E>(i) Reporting carriers shall submit to the NANPA a utilization report of their current inventory of numbering resources. The report shall classify numbering resources in the following number use categories: <E T="03">assigned, intermediate, reserved, aging, </E>and <E T="03">administrative. </E> </P> <P>(ii) Rural telephone companies, as defined in the Communications Act of <PRTPAGE P="71"/>1934, as amended, 47 U.S.C. 153(37), that provide telecommunications service in areas where local number portability has not been implemented shall report utilization data at the central office code (NXX) level per rate center in those areas.</P> <P>(iii) All other reporting carriers shall report utilization data at the thousands-block (NXX-X) level per rate center.</P> <P>(6) <E T="03">Reporting frequency. </E>(i) Reporting carriers shall file forecast and utilization reports semi-annually on or before February 1 for the preceding reporting period ending on December 31, and on or before August 1 for the preceding reporting period ending on June 30. Mandatory reporting shall commence August 1, 2000.</P> <P>(ii) State commissions may reduce the reporting frequency for NPAs in their states to annual. Reporting carriers operating in such NPAs shall file forecast and utilization reports annually on or before August 1 for the preceding reporting period ending on June 30, commencing August 1, 2000.</P> <P>(iii) A state commission seeking to reduce the reporting frequency pursuant to paragraph (f) (6)(ii) of this section shall notify the Common Carrier Bureau and the NANPA in writing prior to reducing the reporting frequency.</P> <P>(7) <E T="03">Access to data and confidentiality</E>—States shall have access to data reported to the NANPA provided that they have appropriate protections in place to prevent public disclosure of disaggregated, carrier-specific data.</P> <P>(g) <E T="03">Applications for numbering resources</E>—(1) <E T="03">General requirements.</E> All applications for numbering resources must include the company name, company headquarters address, OCN, parent company's OCN(s), and the primary type of business in which the numbering resources will be used.</P> <P>(2) <E T="03">Initial numbering resources. </E>Applications for initial numbering resources shall include evidence that:</P> <P>(i) The applicant is authorized to provide service in the area for which the numbering resources are being requested; and</P> <P>(ii) The applicant is or will be capable of providing service within sixty (60) days of the numbering resources activation date.</P> <P>(3) <E T="03">Growth numbering resources. </E>(i) Applications for growth numbering resources shall include:</P> <P>(A) A Months-to-Exhaust Worksheet that provides utilization by rate center for the preceding six months and projected monthly utilization for the next twelve (12) months; and</P> <P>(B) The applicant's current numbering resource utilization level for the rate center in which it is seeking growth numbering resources.</P> <P>(ii) The numbering resource utilization level shall be calculated by dividing all <E T="03">assigned numbers </E>by the total numbering resources in the applicant's inventory and multiplying the result by 100. Numbering resources activated in the Local Exchange Routing Guide (LERG) within the preceding 90 days of reporting utilization levels may be excluded from the utilization calculation.</P> <P>(iii) All service providers shall maintain no more than a six-month inventory of telephone numbers in each rate center or service area in which it provides telecommunications service.</P> <P>(iv) The NANPA shall withhold numbering resources from any U.S. carrier that fails to comply with the reporting and numbering resource application requirements established in this part. The NANPA shall not issue numbering resources to a carrier without an Operating Company Number (OCN). The NANPA must notify the carrier in writing of its decision to withhold numbering resources within ten (10) days of receiving a request for numbering resources. The carrier may challenge the NANPA's decision to the appropriate state regulatory commission. The state regulatory commission may affirm or overturn the NANPA's decision to withhold numbering resources from the carrier based on its determination of compliance with the reporting and numbering resource application requirements herein.</P> <P>(h) [Reserved]</P> <P>(i) <E T="03">Reclamation of numbering resources. </E>(1) Reclamation refers to the process by which service providers are required to return numbering resources to the NANPA or the Pooling Administrator.</P> <P>(2) State commissions may investigate and determine whether service <PRTPAGE P="72"/>providers have activated their numbering resources and may request proof from all service providers that numbering resources have been activated and assignment of telephone numbers has commenced.</P> <P>(3) Service providers may be required to reduce contamination levels to facilitate reclamation and/or pooling.</P> <P>(4) State commissions shall provide service providers an opportunity to explain the circumstances causing the delay in activating and commencing assignment of their numbering resources prior to initiating reclamation.</P> <P>(5) The NANPA and the Pooling Administrator shall abide by the state commission's determination to reclaim numbering resources if the state commission is satisfied that the service provider has not activated and commenced assignment to end users of their numbering resources within six months of receipt.</P> <P>(6) The NANPA and Pooling Administrator shall initiate reclamation within sixty days of expiration of the service provider's applicable activation deadline.</P> <P>(7) If a state commission declines to exercise the authority delegated to it in this paragraph, the entity or entities designated by the Commission to serve as the NANPA shall exercise this authority with respect to NXX codes and the Pooling Administrator shall exercise this authority with respect to thousands-blocks. The NANPA and the Pooling Administrator shall consult with the Common Carrier Bureau prior to exercising the authority delegated to it in this provision.</P> <P>(j) <E T="03">Sequential number assignment.</E> (1) All service providers shall assign all available telephone numbers within an opened thousands-block before assigning telephone numbers from an uncontaminated thousands-block, unless the available numbers in the opened thousands-block are not sufficient to meet a specific customer request. This requirement shall apply to a service provider's existing numbering resources as well as any new numbering resources it obtains in the future.</P> <P>(2) A service provider that opens an uncontaminated thousands-block prior to assigning all available telephone numbers within an opened thousands-block should be prepared to demonstrate to the state commission:</P> <P>(i) A genuine request from a customer detailing the specific need for telephone numbers; and</P> <P>(ii) The service provider's inability to meet the specific customer request for telephone numbers from the available numbers within the service provider's opened thousands-blocks.</P> <P>(3) Upon a finding by a state commission that a service provider inappropriately assigned telephone numbers from an uncontaminated thousands-block, the NANPA or the Pooling Administrator shall suspend assignment or allocation of any additional numbering resources to that service provider in the applicable NPA until the service provider demonstrates that it does not have sufficient numbering resources to meet a specific customer request.</P> <CITA>[61 FR 47353, Sept. 6, 1996, as amended at 62 FR 55182, Oct. 23, 1997; 65 FR 37707, June 16, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 52.16</SECTNO> <SUBJECT>Billing and Collection Agent.</SUBJECT> <P>The B&C Agent shall:</P> <P>(a) Calculate, assess, bill and collect payments for numbering administration functions and distribute funds to NANPA on a monthly basis;</P> <P>(b) Distribute to carriers the “Telecommunications Reporting Worksheet,” described in § 52.17(b).</P> <P>(c) Keep confidential all data obtained from carriers and not disclose such data in company-specific form unless authorized by the Commission. Subject to any restrictions imposed by the Chief of the Common Carrier Bureau, the B & C Agent may share data obtained from carriers with the administrators of the universal service support mechanism (See 47 CFR 54.701 of this chapter), the TRS Fund (See 47 CFR 64.604(c)(4)(iii)(H) of this chapter), and the local number portability cost recovery (See 47 CFR 52.32). The B & C Agent shall keep confidential all data obtained from other administrators. The B & C Agent shall use such data, from carriers or administrators, only for calculating, collecting and verifying payments. The Commission shall have access to all data reported to the Administrator. Contributors may make requests for Commission <PRTPAGE P="73"/>nondisclosure of company-specific revenue information under § 0.459 of this chapter by so indicating on the Telecommunications Reporting Worksheet at the time that the subject data are submitted. The Commission shall make all decisions regarding nondisclosure of company-specific information.</P> <P>(d) Develop procedures to monitor industry compliance with reporting requirements and propose specific procedures to address reporting failures and late payments;</P> <P>(e) File annual reports with the appropriate regulatory authorities of the NANP member countries as requested; and</P> <P>(f) Obtain an audit from an independent auditor after the first year of operations and annually thereafter, which shall evaluate the validity of calculated payments. The B&C Agent shall submit the audit report to the Commission for appropriate review and action.</P> <CITA>[62 FR 55183, Oct. 23, 1997, as amended at 64 FR 41330, July 30, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 52.17</SECTNO> <SUBJECT>Costs of number administration.</SUBJECT> <P>All telecommunications carriers in the United States shall contribute on a competitively neutral basis to meet the costs of establishing numbering administration.</P> <P>(a) Contributions to support numbering administration shall be the product of the contributors’ end-user telecommunications revenues for the prior calendar year and a contribution factor determined annually by the Chief of the Common Carrier Bureau; such contributions to be no less than twenty-five dollars ($25). The contribution factor shall be based on the ratio of expected number administration expenses to end-user telecommunications revenues. Carriers that have no end-user telecommunications revenues shall contribute twenty-five dollars ($25). In the event that contributions exceed or are inadequate to cover administrative costs, the contribution factor for the following year shall be adjusted by an appropriate amount.</P> <P>(b) All telecommunications carriers in the United States shall complete and submit a “Telecommunications Reporting Worksheet” (as published by the Commission in the <E T="04">Federal Register</E>), which sets forth the information needed to calculate contributions referred to in paragraph (a) of this section. The worksheet shall be certified to by an officer of the contributor, and subject to verification by the Commission or the B & C Agent at the discretion of the Commission. The Chief of the Common Carrier Bureau may waive, reduce, modify, or eliminate contributor reporting requirements that prove unnecessary and require additional reporting requirements that the Bureau deems necessary to the sound and efficient administration of the number administration cost recovery.</P> <CITA>[64 FR 41331, July 30, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 52.19</SECTNO> <SUBJECT>Area code relief.</SUBJECT> <P>(a) State commissions may resolve matters involving the introduction of new area codes within their states. Such matters may include, but are not limited to: Directing whether area code relief will take the form of a geographic split, an overlay area code, or a boundary realignment; establishing new area code boundaries; establishing necessary dates for the implementation of area code relief plans; and directing public education efforts regarding area code changes.</P> <P>(b) State commissions may perform any or all functions related to initiation and development of area code relief plans, so long as they act consistently with the guidelines enumerated in this part, and subject to paragraph (b)(2) of this section. For the purposes of this paragraph, initiation and development of area code relief planning encompasses all functions related to the implementation of new area codes that were performed by central office code administrators prior to February 8, 1996. Such functions may include: declaring that the area code relief planning process should begin; convening and conducting meetings to which the telecommunications industry and the public are invited on area code relief for a particular area code; and developing the details of a proposed area code relief plan or plans.</P> <P>(1) The entity or entities designated by the Commission to serve as central <PRTPAGE P="74"/>office code administrator(s) shall initiate and develop area code relief plans for each area code in each state that has not notified such entity or entities, pursuant to paragraph (b)(2) of this section, that the state will handle such functions.</P> <P>(2) Pursuant to paragraph (b)(1) of this section, a state commission must notify the entity or entities designated by the Commission to serve as central office code administrator(s) for its state that such state commission intends to perform matters related to initiation and development of area code relief planning efforts in its state. Notification shall be written and shall include a description of the specific functions the state commission intends to perform. Where the NANP Administrator serves as the central office code administrator, such notification must be made within 120 days of the selection of the NANP Administrator.</P> <P>(c) New area codes may be introduced through the use of:</P> <P>(1) A geographic area code split, which occurs when the geographic area served by an area code in which there are few or no central office codes left for assignment is split into two or more geographic parts;</P> <P>(2) An area code boundary realignment, which occurs when the boundary lines between two adjacent area codes are shifted to allow the transfer of some central office codes from an area code for which central office codes remain unassigned to an area code for which few or no central office codes are left for assignment; or</P> <P>(3) An area code overlay, which occurs when a new area code is introduced to serve the same geographic area as an existing area code, subject to the following conditions:</P> <P>(i) No area code overlay may be implemented unless all central office codes in the new overlay area code are assigned to those entities requesting assignment on a first-come, first-serve basis, regardless of the identity of, technology used by, or type of service provided by that entity. No group of telecommunications carriers shall be excluded from assignment of central office codes in the existing area code, or be assigned such codes only from the overlay area code, based solely on that group's provision of a specific type of telecommunications service or use of a particular technology; and,</P> <P>(ii) No area code overlay may be implemented unless there exists, at the time of implementation, mandatory ten-digit dialing for every telephone call within and between all area codes in the geographic area covered by the overlay area code.</P> <CITA>[61 FR 47353, Sept. 6, 1996, as amended at 64 FR 63617, Nov. 16, 1998; 64 FR 62984, Nov. 18, 1999]</CITA> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart C—Number Portability</HD> <SOURCE> <HD SOURCE="HED">Source:</HD> <P>61 FR 38637, July 25, 1996, unless otherwise noted. Redesignated at 61 FR 47353, Sept. 6, 1996.</P> </SOURCE> <SECTION> <SECTNO>§ 52.20</SECTNO> <SUBJECT>Thousands-block number pooling.</SUBJECT> <P>(a) <E T="03">Definition.</E> Thousands-block number pooling is a process by which the 10,000 numbers in a central office code (NXX) are separated into ten sequential blocks of 1,000 numbers each (thousands-blocks), and allocated separately within a rate center.</P> <P>(b) <E T="03">General requirements.</E> Pursuant to the Commission's adoption of thousands-block number pooling as a mandatory nationwide numbering resource optimization strategy, all carriers capable of providing local number portability (LNP) must participate in thousands-block number pooling where it is implemented and consistent with the national thousands-block number pooling framework established by the Commission.</P> <P>(c) <E T="03">Donation of thousands-blocks.</E> (1) All service providers required to participate in thousands-block number pooling shall donate thousands-blocks with less than ten percent contamination to the thousands-block number pool for the rate center within which the numbering resources are assigned.</P> <P>(2) All service providers required to participate in thousands-block number pooling shall be allowed to maintain at least one thousands-block per rate center, even if the thousands-block is less than ten-percent contaminated, as an initial block or footprint block.<PRTPAGE P="75"/> </P> <P>(3) Telephone numbers assigned to customers of service providers from donated thousands-blocks that are contaminated shall be ported back to the donating service provider.</P> <P>(d) <E T="03">Thousands-Block Pooling Administrator.</E> (1) The Pooling Administrator shall be a non-governmental entity that is impartial and not aligned with any particular telecommunication industry segment, and shall comply with the same neutrality requirements that the NANPA is subject to under this part.</P> <P>(2) The Pooling Administrator shall maintain no more than a six-month inventory of telephone numbers in each thousands-block number pool.</P> <CITA>[65 FR 37709, June 16, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 52.21</SECTNO> <SUBJECT>Definitions.</SUBJECT> <P>As used in this subpart:</P> <P>(a) The term <E T="03">broadband PCS</E> has the same meaning as that term is defined in § 24.5 of this chapter.</P> <P>(b) The term <E T="03">cellular service</E> has the same meaning as that term is defined in § 22.99 of this chapter.</P> <P>(c) The term <E T="03">covered CMRS</E> means broadband PCS, cellular, and 800/900 MHz SMR licensees that hold geographic area licenses or are incumbent SMR wide area licensees, and offer real-time, two-way switched voice service, are interconnected with the public switched network, and utilize an in-network switching facility that enables such CMRS systems to reuse frequencies and accomplish seamless hand-offs of subscriber calls.</P> <P>(d) The term <E T="03">database method</E> means a number portability method that utilizes one or more external databases for providing called party routing information.</P> <P>(e) The term <E T="03">downstream database</E> means a database owned and operated by an individual carrier for the purpose of providing number portability in conjunction with other functions and services.</P> <P>(f) The term <E T="03">incumbent wide area SMR licensee</E> has the same meaning as that term is defined in § 20.3 of this chapter.</P> <P>(g) The term <E T="03">local exchange carrier</E> means any person that is engaged in the provision of telephone exchange service or exchange access. For purposes of this subpart, such term does not include a person insofar as such person is engaged in the provision of a commercial mobile service under 47 U.S.C. 332(c).</P> <P>(h) The term <E T="03">local number portability administrator (LNPA)</E> means an independent, non-governmental entity, not aligned with any particular telecommunications industry segment, whose duties are determined by the NANC.</P> <P>(i) The term <E T="03">location portability</E> means the ability of users of telecommunications services to retain existing telecommunications numbers without impairment of quality, reliability, or convenience when moving from one physical location to another.</P> <P>(j) The term <E T="03">long-term database method</E> means a database method that complies with the performance criteria set forth in § 52.3(a).</P> <P>(k) The term <E T="03">number portability</E> means the ability of users of telecommunications services to retain, at the same location, existing telecommunications numbers without impairment of quality, reliability, or convenience when switching from one telecommunications carrier to another.</P> <P>(l) The term <E T="03">regional database</E> means an SMS database or an SMS/SCP pair that contains information necessary for carriers to provide number portability in a region as determined by the NANC.</P> <P>(m) The term <E T="03">service control point (SCP)</E> means a database in the public switched network which contains information and call processing instructions needed to process and complete a telephone call. The network switches access an SCP to obtain such information. Typically, the information contained in an SCP is obtained from the SMS.</P> <P>(n) The term <E T="03">service management system (SMS)</E> means a database or computer system not part of the public switched network that, among other things:</P> <P>(1) Interconnects to an SCP and sends to that SCP the information and call processing instructions needed for a network switch to process and complete a telephone call; and</P> <P>(2) Provides telecommunications carriers with the capability of entering <PRTPAGE P="76"/>and storing data regarding the processing and completing of a telephone call.</P> <P>(o) The term <E T="03">service portability</E> means the ability of users of telecommunications services to retain existing telecommunications numbers without impairment of quality, reliability, or convenience when switching from one telecommunications service to another, without switching from one telecommunications carrier to another.</P> <P>(p) The term <E T="03">service provider portability</E> means the ability of users of telecommunications services to retain, at the same location, existing telecommunications numbers without impairment of quality, reliability, or convenience when switching from one telecommunications carrier to another.</P> <P>(q) The term <E T="03">transitional number portability measure</E> means a method that allows one local exchange carrier to transfer telephone numbers from its network to the network of another telecommunications carrier, but does not comply with the performance criteria set forth in 52.3(a). Transitional number portability measures are technically feasible methods of providing number portability including Remote Call Forwarding (RCF), Direct Inward Dialing (DID), Route Indexing—Portability Hub (RI-PH), Directory Number Route Indexing (DNRI) and other comparable methods.</P> <CITA>[61 FR 38637, July 25, 1996. Redesignated at 61 FR 47353, Sept. 6, 1996, as amended at 61 FR 47355, Sept. 6, 1996; 63 FR 68203, Dec. 10, 1998]</CITA> </SECTION> <SECTION> <SECTNO>§ 52.23</SECTNO> <SUBJECT>Deployment of long-term database methods for number portability by LECs.</SUBJECT> <P>(a) Subject to paragraphs (b) and (c) of this section, all local exchange carriers (LECs) must provide number portability in compliance with the following performance criteria:</P> <P>(1) Supports network services, features, and capabilities existing at the time number portability is implemented, including but not limited to emergency services, CLASS features, operator and directory assistance services, and intercept capabilities;</P> <P>(2) Efficiently uses numbering resources;</P> <P>(3) Does not require end users to change their telecommunications numbers;</P> <P>(4) Does not result in unreasonable degradation in service quality or network reliability when implemented;</P> <P>(5) Does not result in any degradation in service quality or network reliability when customers switch carriers;</P> <P>(6) Does not result in a carrier having a proprietary interest;</P> <P>(7) Is able to migrate to location and service portability; and</P> <P>(8) Has no significant adverse impact outside the areas where number portability is deployed.</P> <P>(b)(1) All LECs must provide a long-term database method for number portability in the 100 largest Metropolitan Statistical Areas (MSAs) by December 31, 1998, in accordance with the deployment schedule set forth in the Appendix to this part, in switches for which another carrier has made a specific request for the provision of number portability, subject to paragraph (b)(2) of this section.</P> <P>(2) Any procedure to identify and request switches for deployment of number portability must comply with the following criteria:</P> <P>(i) Any wireline carrier that is certified (or has applied for certification) to provide local exchange service in a state, or any licensed CMRS provider, must be permitted to make a request for deployment of number portability in that state;</P> <P>(ii) Carriers must submit requests for deployment at least nine months before the deployment deadline for the MSA;</P> <P>(iii) A LEC must make available upon request to any interested parties a list of its switches for which number portability has been requested and a list of its switches for which number portability has not been requested; and</P> <P>(iv) After the deadline for deployment of number portability in an MSA in the 100 largest MSAs, according to the deployment schedule set forth in the appendix to this part, a LEC must deploy number portability in that MSA in additional switches upon request within the following time frames:</P> <P>(A) For remote switches supported by a host switch equipped for portability <PRTPAGE P="77"/>(“Equipped Remote Switches”), within 30 days;</P> <P>(B) For switches that require software but not hardware changes to provide portability (“Hardware Capable Switches”), within 60 days;</P> <P>(C) For switches that require hardware changes to provide portability (“Capable Switches Requiring Hardware”), within 180 days; and</P> <P>(D) For switches not capable of portability that must be replaced (“Non-Capable Switches”), within 180 days.</P> <P>(c) Beginning January 1, 1999, all LECs must make a long-term database method for number portability available within six months after a specific request by another telecommunications carrier in areas in which that telecommunications carrier is operating or plans to operate.</P> <P>(d) The Chief, Common Carrier Bureau, may waive or stay any of the dates in the implementation schedule, as the Chief determines is necessary to ensure the efficient development of number portability, for a period not to exceed 9 months (<E T="03">i.e.</E>, no later than September 30, 1999).</P> <P>(e) In the event a LEC is unable to meet the Commission's deadlines for implementing a long-term database method for number portability, it may file with the Commission at least 60 days in advance of the deadline a petition to extend the time by which implementation in its network will be completed. A LEC seeking such relief must demonstrate through substantial, credible evidence the basis for its contention that it is unable to comply with the deployment schedule set forth in the appendix to this part 52. Such requests must set forth:</P> <P>(1) The facts that demonstrate why the carrier is unable to meet the Commission's deployment schedule;</P> <P>(2) A detailed explanation of the activities that the carrier has undertaken to meet the implementation schedule prior to requesting an extension of time;</P> <P>(3) An identification of the particular switches for which the extension is requested;</P> <P>(4) The time within which the carrier will complete deployment in the affected switches; and</P> <P>(5) A proposed schedule with milestones for meeting the deployment date.</P> <P>(f) The Chief, Common Carrier Bureau, shall monitor the progress of local exchange carriers implementing number portability, and may direct such carriers to take any actions necessary to ensure compliance with the deployment schedule set forth in the appendix to this part 52.</P> <P>(g) Carriers that are members of the Illinois Local Number Portability Workshop must conduct a field test of any technically feasible long-term database method for number portability in the Chicago, Illinois, area. The carriers participating in the test must jointly file with the Common Carrier Bureau a report of their findings within 30 days following completion of the test. The Chief, Common Carrier Bureau, shall monitor developments during the field test, and may adjust the field test completion deadline as necessary.</P> <CITA>[61 FR 38637, July 25, 1996, as amended at 62 FR 18294, Apr. 15, 1997]</CITA> <EFFDNOT> <HD SOURCE="HED">Effective Date Note:</HD> <P>At 62 FR 18294, Apr. 15, 1997, § 52.23 was amended by removing paragraph (a)(9) and revising paragraphs (a)(4) through (a)(8) and paragraphs (b) and (g). These paragraphs contain information collection and recordkeeping requirements and will not become effective until approval has been given by the Office of Management and Budget.</P> </EFFDNOT> </SECTION> <SECTION> <SECTNO>§ 52.25</SECTNO> <SUBJECT>Database architecture and administration.</SUBJECT> <P>(a) The North American Numbering Council (NANC) shall direct establishment of a nationwide system of regional SMS databases for the provision of long-term database methods for number portability.</P> <P>(b) All telecommunications carriers shall have equal and open access to the regional databases.</P> <P>(c) The NANC shall select a local number portability administrator(s) (LNPA(s)) to administer the regional databases within seven months of the initial meeting of the NANC.</P> <P>(d) The NANC shall determine whether one or multiple administrator(s) should be selected, whether the <PRTPAGE P="78"/>LNPA(s) can be the same entity selected to be the North American Numbering Plan Administrator, how the LNPA(s) should be selected, the specific duties of the LNPA(s), the geographic coverage of the regional databases, the technical interoperability and operational standards, the user interface between telecommunications carriers and the LNPA(s), the network interface between the SMS and the downstream databases, and the technical specifications for the regional databases.</P> <P>(e) Once the NANC has selected the LNPA(s) and determined the locations of the regional databases, it must report its decisions to the Commission.</P> <P>(f) The information contained in the regional databases shall be limited to the information necessary to route telephone calls to the appropriate telecommunications carriers. The NANC shall determine what specific information is necessary.</P> <P>(g) Any state may opt out of its designated regional database and implement a state-specific database. A state must notify the Common Carrier Bureau and NANC that it plans to implement a state-specific database within 60 days from the release date of the Public Notice issued by the Chief, Common Carrier Bureau, identifying the administrator selected by the NANC and the proposed locations of the regional databases. Carriers may challenge a state's decision to opt out of the regional database system by filing a petition with the Commission.</P> <P>(h) Individual state databases must meet the national requirements and operational standards recommended by the NANC and adopted by the Commission. In addition, such state databases must be technically compatible with the regional system of databases and must not interfere with the scheduled implementation of the regional databases.</P> <P>(i) Individual carriers may download information necessary to provide number portability from the regional databases into their own downstream databases. Individual carriers may mix information needed to provide other services or functions with the information downloaded from the regional databases at their own downstream databases. Carriers may not withhold any information necessary to provide number portability from the regional databases on the grounds that such data has been combined with other information in its downstream database.</P> </SECTION> <SECTION> <SECTNO>§ 52.26</SECTNO> <SUBJECT>NANC Recommendations on Local Number Portability Administration.</SUBJECT> <P>(a) Local number portability administration shall comply with the recommendations of the North American Numbering Council (NANC) as set forth in the report to the Commission prepared by the NANC's Local Number Portability Administration Selection Working Group, dated April 25, 1997 (<E T="03">Working Group Report</E>) and its appendices, which are incorporated by reference pursuant to 5 U.S.C. 552(a) and 1 CFR part 51. <E T="03">Except that:</E> Section 7.10 of Appendix D of the <E T="03">Working Group Report</E> is <E T="03">not</E> incorporated herein.</P> <P>(b) In addition to the requirements set forth in the <E T="03">Working Group Report</E>, the following requirements are established:</P> <P>(1) If a telecommunictions carrier transmits a telephone call to a local exchange carrier's switch that contains any ported numbers, and the telecommunications carrier has failed to perform a database query to determine if the telephone number has been ported to another local exchange carrier, the local exchange carrier may block the unqueried call only if performing the database query is likely to impair network reliability;</P> <P>(2) The regional limited liability companies (LLCs), already established by telecommunications carriers in each of the original Bell Operating Company regions, shall manage and oversee the local number portability administrators, subject to review by the NANC, but only on an interim basis, until the conclusion of a rulemaking to examine the issue of local number portability administrator oversight and management and the question of whether the LLCs should continue to act in this capacity; and</P> <P>(3) The NANC shall provide ongoing oversight of number portability administration, including oversight of the regional LLCs, subject to Commission review. Parties shall attempt to resolve <PRTPAGE P="79"/>issues regarding number portability deployment among themselves and, if necessary, under the auspices of the NANC. If any party objects to the NANC's proposed resolution, the NANC shall issue a written report summarizing the positions of the parties and the basis for the recommendation adopted by the NANC. The NANC Chair shall submit its proposed resolution of the dispuited issue to the Chief of the Common Carrier Bureau as a recommendation for Commission review. The Chief of the Common Carrier Bureau will place the NANC's proposed resolution on public notice. Recommendations adopted by the NANC and forwarded to the Bureau may be implemented by the parties pending review of the recommendation. Within 90 days of the conclusion of the comment cycle, the Chief of the Common Carrier Bureau may issue an order adopting, modifying, or rejecting the recommendation. If the Chief does not act within 90 days of the conclusion of the comment cycle, the recommendation will be deemed to have been adopted by the Bureau.</P> <P>(c) The Director of the Federal Register approves this incorporation by reference in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Copies of the <E T="03">Working Group Report</E> and its appendices can be obtained from the Commission's contract copier, International Transcription Service, Inc., 1231 20th St., N.W., Washington, D.C. 20036, and can be inspected during normal business hours at the following locations; Reference Information Center, 445 12th Street, SW., Room CY—A257, Washington, D.C. 20554 or at the Office of the Federal Register, 800 North Capitol Street, N.W., Suite 700, Washington, D.C. The <E T="03">Working Group Report</E> and its appendices are also available in the Internet at http://www.fcc.gov/ccb/Nanc/.</P> <CITA>[62 FR 48786, Sept. 17, 1997, as amended at 65 FR 58466, Sept. 29, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 52.27</SECTNO> <SUBJECT>Deployment of transitional measures for number portability.</SUBJECT> <P>(a) All LECs shall provide transitional number portability measures, as defined in section 52.21(q) of this chapter, 47 CFR 52.21(q), as soon as reasonably possible upon receipt of a specific request from another telecommunications carrier, until such time as the LEC implements a long-term database method for number portability in that area.</P> <P>(b) A LEC must provide the particular transitional number portability measure requested by a telecommunications carrier, except as set forth in paragraph (c) of this section.</P> <P>(c) A LEC that does not provide a requested transitional number portability measure must demonstrate that provision of the requested transitional number portability measure either is not technically feasible or if technically feasible, is unduly burdensome.</P> <P>(1) Previous successful provision of a particular transitional number portability measure by any LEC constitutes substantial evidence that the particular method is technically feasible.</P> <P>(2) In determining whether provision of a transitional number portability measure is unduly burdensome, relevant factors to consider are the extent of network upgrades needed to provide that particular method, the cost of such upgrades, the business needs of the requesting carrier, and the timetable for deployment of a long-term number portability method in that particular geographic location.</P> <P>(d) LECs must discontinue using transitional number portability measures in areas where a long-term number portability method has been implemented.</P> <CITA>[63 FR 68203, Dec. 10, 1998]</CITA> </SECTION> <SECTION> <SECTNO>§ 52.29</SECTNO> <SUBJECT>Cost recovery for transitional measures for number portability.</SUBJECT> <P>Any cost recovery mechanism for the provision of number portability pursuant to § 52.7(a), that is adopted by a state commission must not:</P> <P>(a) Give one telecommunications carrier an appreciable, incremental cost advantage over another telecommunications carrier, when competing for a specific subscriber (<E T="03">i.e.</E>, the recovery mechanism may not have a disparate effect on the incremental costs of competing carriers seeking to serve the same customer); or<PRTPAGE P="80"/> </P> <P>(b) Have a disparate effect on the ability of competing telecommunications carriers to earn a normal return on their investment.</P> </SECTION> <SECTION> <SECTNO>§ 52.31</SECTNO> <SUBJECT>Deployment of long-term database methods for number portability by CMRS providers.</SUBJECT> <P>(a) By November 24, 2002, all covered CMRS providers must provide a long-term database method for number portability, including the ability to support roaming, in the MSAs identified in the Appendix to this part in compliance with the performance criteria set forth in section 52.23(a) of this part, in switches for which another carrier has made a specific request for the provision of number portability, subject to paragraph (a)(1) of this section. A licensee may have more than one CMRS system, but only the systems that satisfy the definition of covered CMRS are required to provide number portability.</P> <P>(1) Any procedure to identify and request switches for development of number portability must comply with the following criteria:</P> <P>(i) Any wireline carrier that is certified (or has applied for certification) to provide local exchange service in a state, or any licensed CMRS provider, must be permitted to make a request for deployment of number portability in that state;</P> <P>(ii) For the MSAs identified in the appendix to this part, carriers must submit requests for deployment by February 24, 2002;</P> <P>(iii) A covered CMRS provider must make available upon request to any interested parties a list of its switches for which number portability has been requested and a list of its switches for which number portability has not been requested;</P> <P>(iv) After November 24, 2002, a covered CMRS provider must deploy additional switches serving the MSAs identified in the Appendix to this part upon request within the following time frames:</P> <P>(A) For remote switches supported by a host switch equipped for portability (“Equipped Remote Switches”), within 30 days;</P> <P>(B) For switches that require software but not hardware changes to provide portability (“Hardware Capable Switches”), within 60 days;</P> <P>(C) For switches that require hardware changes to provide portability (“Capable Switches Requiring Hardware”), within 180 days; and</P> <P>(D) For switches not capable of portability that must be replaced (“Non-Capable Switches”), within 180 days.</P> <P>(v) Carriers must be able to request deployment in any wireless switch that serves any area within the MSA, even if the wireless switch is outside that MSA, or outside any of the MSAs identified in the Appendix to this part.</P> <P>(2) By November 24, 2002, all covered CMRS providers must be able to support roaming nationwide.</P> <P>(b) By December 31, 1998, all covered CMRS providers must have the capability to obtain routing information, either by querying the appropriate database themselves or by making arrangements with other carriers that are capable of performing database queries, so that they can deliver calls from their networks to any party that has retained its number after switching from one telecommunications carrier to another.</P> <P>(c) The Chief, Wireless Telecommunications Bureau, may waive or stay any of the dates in the implementation schedule, as the Chief determines is necessary to ensure the efficient development of number portability, for a period not to exceed 9 months (<E T="03">i.e.</E>, no later than September 30, 1999, for the deadline in paragraph (b) of this section, and no later than March 31, 2000, for the deadline in paragraph (a) of this section).</P> <P>(d) In the event a carrier subject to paragraphs (a) and (b) of this section is unable to meet the Commission's deadlines for implementing a long-term number portability method, it may file with the Commission at least 60 days in advance of the deadline a petition to extend the time by which implementation in its network will be completed. A carrier seeking such relief must demonstrate through substantial, credible evidence the basis for its contention that it is unable to comply with paragraphs (a) and (b) of this section. Such requests must set forth:<PRTPAGE P="81"/> </P> <P>(1) The facts that demonstrate why the carrier is unable to meet our deployment schedule;</P> <P>(2) A detailed explanation of the activities that the carrier has undertaken to meet the implementation schedule prior to requesting an extension of time;</P> <P>(3) An identification of the particular switches for which the extension is requested;</P> <P>(4) The time within which the carrier will complete deployment in the affected switches; and</P> <P>(5) A proposed schedule with milestones for meeting the deployment date.</P> <P>(e) The Chief, Wireless Telecommunications Bureau, may establish reporting requirements in order to monitor the progress of covered CMRS providers implementing number portability, and may direct such carriers to take any actions necessary to ensure compliance with this deployment schedule.</P> <CITA>[61 FR 38637, July 25, 1996, as amended at 62 FR 18295, Apr. 15, 1997; 63 FR 68204, Dec. 10, 1998; 64 FR 22563, Apr. 27, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 52.32</SECTNO> <SUBJECT>Allocation of the shared costs of long-term number portability</SUBJECT> <P>(a) The local number portability administrator, as defined in § 52.21(h), of each regional database, as defined in § 52.21(1), shall recover the shared costs of long-term number portability attributable to that regional database from all telecommunications carriers providing telecommunications service in areas that regional database serves. Pursuant to its duties under § 52.26, the local number portability administrator shall collect sufficient revenues to fund the operation of the regional database by:</P> <P>(1) Assessing a $100 yearly contribution on each telecommunications carrier identified in paragraph (a) introductory text that has no intrastate, interstate, or international end-user telecommunications revenue derived from providing telecommunications service in the areas that regional database serves, and</P> <P>(2) Assessing on each of the other telecommunications carriers providing telecommunications service in areas that regional database serves, a charge that recovers the remaining shared costs of long-term number portability attributable to that regional database in proportion to the ratio of:</P> <P>(i) The sum of the intrastate, interstate, and international end-user telecommunications revenues that such telecommunications carrier derives from providing telecommunications service in the areas that regional database serves, ii) to the sum of the intrastate, interstate, and international end-user telecommunications revenues that all telecommunications carriers derive from providing telecommunications service in the areas that regional database serves.</P> <P>(b) All telecommunications carriers providing service in the United States shall complete and submit a “Telecommunications Reporting Worksheet” (as published by the Commission in the <E T="04">Federal Register</E>), which sets forth the information needed to calculate contributions referred to in paragraph (a) of this section. The worksheet shall be certified to by an officer of the contributor, and subject to verification by the Commission or the administrator at the discretion of the Commission. The Chief of the Common Carrier Bureau may waive, reduce, modify, or eliminate contributor reporting requirements that prove unnecessary and require additional reporting requirements that the Bureau deems necessary to the sound and efficient administration of long-term number portability.</P> <P>(c) Local number portability administrators shall keep all data obtained from contributors confidential and shall not disclose such data in company-specific form unless directed to do so by the Commission. Subject to any restrictions imposed by the Chief of the Common Carrier Bureau, the local number portability administrators may share data obtained from carriers with the administrators of the universal service support mechanism (See 47 CFR 54.701 of this chapter), the TRS Fund (See 47 CFR 64.604(c)(4)(iii)(H) of this chapter), and the North American Numbering Plan cost recovery (See 47 CFR 52.16). The local number portability administrators shall keep confidential all data obtained from other administrators. The <PRTPAGE P="82"/>administrators shall use such data, from carriers or administrators, only for purposes of administering local number portability. The Commission shall have access to all data reported to the Administrator. Contributors may make requests for Commission nondisclosure of company-specific revenue information under § 0.459 of this chapter by so indicating on the Telecommunications Reporting Worksheet at the time that the subject data are submitted. The Commission shall make all decisions regarding nondisclosure of company-specific information.</P> <P>(d) Once a telecommunications carrier has been allocated, pursuant to paragraph (a)(1) or (a)(2) of this section, its portion of the shared costs of long-term number portability attributable to a regional database, the carrier shall treat that portion as a carrier-specific cost directly related to providing number portability.</P> <CITA>[63 FR 35160, June 29, 1998, as amended at 64 FR 41331, July 30, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 52.33</SECTNO> <SUBJECT>Recovery of carrier-specific costs directly related to providing long-term number portability.</SUBJECT> <P>(a) Incumbent local exchange carriers may recover their carrier-specific costs directly related to providing long-term number portability by establishing in tariffs filed with the Federal Communications Commission a monthly number-portability charge, as specified in paragraph (a)(1), and a number portability query-service charge, as specified in paragraph (a)(2).</P> <P>(1) The monthly number-portability charge may take effect no earlier than February 1, 1999, on a date the incumbent local exchange carrier selects, and may end no later than five years after that date.</P> <P>(i) An incumbent local exchange carrier may assess each end user it serves in the 100 largest metropolitan statistical areas, and each end user it serves from a number-portability-capable switch outside the 100 largest metropolitan statistical areas, one monthly number-portability charge per line except that:</P> <P>(A) One PBX trunk shall receive nine monthly number-portability charges.</P> <P>(B) One PRI ISDN line shall receive five monthly number-portability charges.</P> <P>(C) Lifeline Assistance Program customers shall not receive the monthly number-portability charge.</P> <P>(ii) An incumbent local exchange carrier may assess on carriers that purchase the incumbent local exchange carrier's switching ports as unbundled network elements under section 251 of the Communications Act, and resellers of the incumbent local exchange carrier's local service, the same charges as described in paragraph (a)(1)(A) of this section, as if the incumbent local exchange carrier were serving those carriers' end users.</P> <P>(iii) An incumbent local exchange carrier may not assess a monthly number-portability charge for local loops carriers purchase as unbundled network elements under section 251.</P> <P>(iv) The incumbent local exchange carrier shall levelize the monthly number-portability charge over five years by setting a rate for the charge at which the present value of the revenue recovered by the charge does not exceed the present value of the cost being recovered, using a discount rate equal to the rate of return on investment which the Commission has prescribed for interstate access services pursuant to Part 65 of the Commission's Rules.</P> <P>(2) The number portability query-service charge may recover only carrier-specific costs directly related to providing long-term number portability that the incumbent local exchange carrier incurs to provide long-term number portability query service to carriers on a prearranged and default basis.</P> <P>(b) All telecommunications carriers other than incumbent local exchange carriers may recover their number portability costs in any manner consistent with applicable state and federal laws and regulations.</P> <CITA>[63 FR 35161, June 29, 1998]</CITA> <EFFDNOT> <HD SOURCE="HED">Effective Date Note:</HD> <P>At 63 FR 35161, June 29, 1998, § 52.33 was added. Paragraph (a)(1) contains information collection requirements and will not become effective until approval has been given by the Office of Management and Budget.</P> </EFFDNOT> </SECTION> <SECTION> <PRTPAGE P="83"/> <SECTNO>§§ 52.34-52.99</SECTNO> <RESERVED>[Reserved]</RESERVED> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart D—Toll Free Numbers</HD> <SOURCE> <HD SOURCE="HED">Source:</HD> <P>62 FR 20127, Apr. 25, 1997, unless otherwise noted.</P> </SOURCE> <SECTION> <SECTNO>§ 52.101</SECTNO> <SUBJECT>General definitions.</SUBJECT> <P>As used in this part:</P> <P>(a) <E T="03">Number Administration and Service Center (“NASC”).</E> The entity that provides user support for the Service Management System database and administers the Service Management System database on a day-to-day basis.</P> <P>(b) <E T="03">Responsible Organization (“RespOrg”).</E> The entity chosen by a toll free subscriber to manage and administer the appropriate records in the toll free Service Management System for the toll free subscriber.</P> <P>(c) <E T="03">Service Control Points.</E> The regional databases in the toll free network.</P> <P>(d) <E T="03">Service Management System Database (“SMS Database”).</E> The administrative database system for toll free numbers. The Service Management System is a computer system that enables Responsible Organizations to enter and amend the data about toll free numbers within their control. The Service Management System shares this information with the Service Control Points. The entire system is the SMS database.</P> <P>(e) <E T="03">Toll Free Subscriber.</E> The entity that requests a Responsible Organization to reserve a toll free number from the SMS database.</P> <P>(f) <E T="03">Toll Free Number.</E> A telephone number for which the toll charges for completed calls are paid by the toll free subscriber. The toll free subscriber's specific geographic location has no bearing on what toll free number it can obtain from the SMS database.</P> </SECTION> <SECTION> <SECTNO>§ 52.103</SECTNO> <SUBJECT>Lag times.</SUBJECT> <P>(a) <E T="03">Definitions.</E> As used in this section, the following definitions apply:</P> <P>(1) <E T="03">Assigned Status.</E> A toll free number record that has specific subscriber routing information entered by the Responsible Organization in the Service Management System database and is pending activation in the Service Control Points.</P> <P>(2) <E T="03">Disconnect Status.</E> The toll free number has been discontinued and an exchange carrier intercept recording is being provided.</P> <P>(3) <E T="03">Lag Time.</E> The interval between a toll free number's reservation in the Service Management System database and its conversion to working status, as well as the period of time between disconnection or cancellation of a toll free number and the point at which that toll free number may be reassigned to another toll free subscriber.</P> <P>(4) <E T="03">Reserved Status.</E> The toll free number has been reserved from the Service Management System database by a Responsible Organization for a toll free subscriber.</P> <P>(5) <E T="03">Seasonal Numbers.</E> Toll free numbers held by toll free subscribers who do not have a year-round need for a toll free number.</P> <P>(6) <E T="03">Spare Status.</E> The toll free number is available for assignment by a Responsible Organization.</P> <P>(7) <E T="03">Suspend Status.</E> The toll free service has been temporarily disconnected and is scheduled to be reactivated.</P> <P>(8) <E T="03">Unavailable Status.</E> The toll free number is not available for assignment due to an unusual condition.</P> <P>(9) <E T="03">Working Status.</E> The toll free number is loaded in the Service Control Points and is being utilized to complete toll free service calls.</P> <P>(b) <E T="03">Reserved Status.</E> Toll free numbers may remain in reserved status for up to 45 days. There shall be no extension of the reservation period after expiration of the initial 45-day interval.</P> <P>(c) <E T="03">Assigned Status.</E> Toll free numbers may remain in assigned status until changed to working status or for a maximum of 6 months, whichever occurs first. Toll free numbers that, because of special circumstances, require that they be designated for a particular subscriber far in advance of their actual usage shall not be placed in assigned status, but instead shall be placed in unavailable status.</P> <P>(d) <E T="03">Disconnect Status.</E> Toll free numbers may remain in disconnect status for up to 4 months. No requests for extension of the 4-month disconnect interval shall be granted. All toll free numbers in disconnect status must go directly into the spare category upon expiration of the 4-month disconnect <PRTPAGE P="84"/>interval. Responsible Organizations shall not retrieve a toll free number from disconnect status and return that number directly to working status at the expiration of the 4-month disconnect interval.</P> <P>(e) <E T="03">Suspend Status.</E> Toll free numbers may remain in suspend status until changed to working status or for a maximum of 8 months, whichever occurs first. Only numbers involved in billing disputes shall be eligible for suspend status.</P> <P>(f) <E T="03">Unavailable Status.</E> (1) Written requests to make a specific toll free number unavailable must be submitted to DSMI by the Responsible Organization managing the records of the toll free number. The request shall include the appropriate documentation of the reason for the request. DSMI is the only entity that can assign this status to or remove this status from a number. Responsible Organizations that have a toll free subscriber with special circumstances requiring that a toll free number be designated for that particular subscriber far in advance of its actual usage may request that DSMI place such a number in unavailable status.</P> <P>(2) Seasonal numbers shall be placed in unavailable status. The Responsible Organization for a toll free subscriber who does not have a year round need for a toll free number shall follow the procedures outlined in § 52.103(f)(1) of these rules if it wants DSMI to place a particular toll free number in unavailable status.</P> </SECTION> <SECTION> <SECTNO>§ 52.105</SECTNO> <SUBJECT>Warehousing.</SUBJECT> <P>(a) As used in this section, warehousing is the practice whereby Responsible Organizations, either directly or indirectly through an affiliate, reserve toll free numbers from the Service Management System database without having an actual toll free subscriber for whom those numbers are being reserved.</P> <P>(b) Responsible Organizations shall not warehouse toll free numbers. There shall be a rebuttable presumption that a Responsible Organization is warehousing toll free numbers if:</P> <P>(1) The Responsible Organization does not have an identified toll free subscriber agreeing to be billed for service associated with each toll free number reserved from the Service Management System database; or</P> <P>(2) The Responsible Organization does not have an identified toll free subscriber agreeing to be billed for service associated with a toll free number before switching that toll free number from reserved or assigned to working status.</P> <P>(c) Responsible Organizations shall not maintain a toll free number in reserved status if there is not a prospective toll free subscriber requesting that toll free number.</P> <P>(d) A Responsible Organization's act of reserving a number from the Service Management System database shall serve as that Responsible Organization's certification that there is an identified toll free subscriber agreeing to be billed for service associated with the toll free number.</P> <P>(e) <E T="03">Tariff Provision</E>. The following provision shall be included in the Service Management System tariff and in the local exchange carriers' toll free database access tariffs: </P> <P>[T]he Federal Communications Commission (“FCC”) has concluded that warehousing, which the FCC defines as Responsible Organizations, either directly or indirectly through an affiliate, reserving toll free numbers from the SMS database without having an identified toll free subscriber from whom those numbers are being reserved, is an unreasonable practice under § 201(b) of the Communications Act and is inconsistent with the Commission's obligation under § 251(e) of the Communications Act to ensure that numbers are made available on an equitable basis; and if a Responsible Organization does not have an identified toll free subscriber agreeing to be billed for service associated with each toll free number reserved from the database, or if a Responsible Organization does not have an identified, billed toll free subscriber before switching a number from reserved or assigned to working status, then there is a rebuttable presumption that the Responsible Organization is warehousing numbers. Responsible Organizations that warehouse numbers will be subject to penalties.</P> </SECTION> <SECTION> <PRTPAGE P="85"/> <SECTNO>§ 52.107</SECTNO> <SUBJECT>Hoarding.</SUBJECT> <P>(a) As used in this section, hoarding is the acquisition by a toll free subscriber from a Responsible Organization of more toll free numbers than the toll free subscriber intends to use for the provision of toll free service. The definition of hoarding also includes number brokering, which is the selling of a toll free number by a private entity for a fee.</P> <P>(1) Toll free subscribers shall not hoard toll free numbers.</P> <P>(2) No person or entity shall acquire a toll free number for the purpose of selling the toll free number to another entity or to a person for a fee.</P> <P>(3) Routing multiple toll free numbers to a single toll free subscriber will create a rebuttable presumption that the toll free subscriber is hoarding or brokering toll free numbers.</P> <P>(b) <E T="03">Tariff Provision</E>. The following provision shall be included in the Service Management System tariff and in the local exchange carriers' toll free database access tariffs: </P> <P>[T]he Federal Communications Commission (“FCC”) has concluded that hoarding, defined as the acquisition of more toll free numbers than one intends to use for the provision of toll free service, as well as the sale of a toll free number by a private entity for a fee, is contrary to the public interest in the conservation of the scarce toll free number resource and contrary to the FCC's responsibility to promote the orderly use and allocation of toll free numbers.</P> </SECTION> <SECTION> <SECTNO>§ 52.109</SECTNO> <SUBJECT>Permanent cap on number reservations.</SUBJECT> <P>(a) A Responsible Organization may have in reserve status, at any one time, either 2000 toll free numbers or 7.5 percent of that Responsible Organization's numbers in working status, whichever is greater.</P> <P>(b) A Responsible Organization shall never reserve more than 3 percent of the quantity of toll free numbers in spare status as of the previous Sunday at 12:01 a.m. Eastern Time.</P> <P>(c) The Common Carrier Bureau shall modify the quantity of numbers a Responsible Organization may have in reserve status or the percentage of numbers in the spare poll that a Responsible Organization may reserve when exigent circumstances make such action necessary. The Common Carrier Bureau shall establish, modify, and monitor toll free number conservation plans when exigent circumstances necessitate such action.</P> </SECTION> <APPENDIX> <EAR>Pt. 52, App.</EAR> <HD SOURCE="HED">Appendix to Part 52—Deployment Schedule for Long-Term Database Methods for Local Number Portability</HD> <P>Implementation must be completed by the carriers in the relevant MSAs during the periods specified below:</P> <GPOTABLE CDEF="s25,7" COLS="2" OPTS="L0,p0,8/9,g1,t1,i1"> <BOXHD> <CHED H="1"/> <CHED H="1"/> </BOXHD> <ROW EXPSTB="01"> <ENT I="21"> <E T="02">Phase I—10/1/97-3/31/98</E> </ENT> </ROW> <ROW EXPSTB="00"> <ENT I="01">Chicago, IL</ENT> <ENT>3</ENT> </ROW> <ROW> <ENT I="01">Philadelphia, PA</ENT> <ENT>4</ENT> </ROW> <ROW> <ENT I="01">Atlanta, GA</ENT> <ENT>8</ENT> </ROW> <ROW> <ENT I="01">New York, NY</ENT> <ENT>2</ENT> </ROW> <ROW> <ENT I="01">Los Angeles, CA</ENT> <ENT>1</ENT> </ROW> <ROW> <ENT I="01">Houston, TX</ENT> <ENT>7</ENT> </ROW> <ROW> <ENT I="01">Minneapolis, MN</ENT> <ENT>12 </ENT> </ROW> <ROW EXPSTB="01"> <ENT I="21"> <E T="02">Phase II—1/1/98-5/15/98</E> </ENT> </ROW> <ROW EXPSTB="00"> <ENT I="01">Detroit, MI</ENT> <ENT>6</ENT> </ROW> <ROW> <ENT I="01">Cleveland, OH</ENT> <ENT>20</ENT> </ROW> <ROW> <ENT I="01">Washington, DC</ENT> <ENT>5</ENT> </ROW> <ROW> <ENT I="01">Baltimore, MD</ENT> <ENT>18</ENT> </ROW> <ROW> <ENT I="01">Miami, FL</ENT> <ENT>24</ENT> </ROW> <ROW> <ENT I="01">Fort Lauderdale, FL</ENT> <ENT>39</ENT> </ROW> <ROW> <ENT I="01">Orlando, FL</ENT> <ENT>40</ENT> </ROW> <ROW> <ENT I="01">Cincinnati, OH</ENT> <ENT>30</ENT> </ROW> <ROW> <ENT I="01">Tampa, FL</ENT> <ENT>23</ENT> </ROW> <ROW> <ENT I="01">Boston, MA</ENT> <ENT>9</ENT> </ROW> <ROW> <ENT I="01">Riverside, CA</ENT> <ENT>10</ENT> </ROW> <ROW> <ENT I="01">San Diego, CA</ENT> <ENT>14</ENT> </ROW> <ROW> <ENT I="01">Dallas, TX</ENT> <ENT>11</ENT> </ROW> <ROW> <ENT I="01">St. Louis, MO</ENT> <ENT>16</ENT> </ROW> <ROW> <ENT I="01">Phoenix, AZ</ENT> <ENT>17</ENT> </ROW> <ROW> <ENT I="01">Seattle, WA</ENT> <ENT>22 </ENT> </ROW> <ROW EXPSTB="01"> <ENT I="21"> <E T="02">Phase III—4/1/98-6/30/98</E> </ENT> </ROW> <ROW EXPSTB="00"> <ENT I="01">Indianapolis, IN</ENT> <ENT>34</ENT> </ROW> <ROW> <ENT I="01">Milwaukee, WI</ENT> <ENT>35</ENT> </ROW> <ROW> <ENT I="01">Columbus, OH</ENT> <ENT>38</ENT> </ROW> <ROW> <ENT I="01">Pittsburgh, PA</ENT> <ENT>19</ENT> </ROW> <ROW> <ENT I="01">Newark, NJ</ENT> <ENT>25</ENT> </ROW> <ROW> <ENT I="01">Norfolk, VA</ENT> <ENT>32</ENT> </ROW> <ROW> <ENT I="01">New Orleans, LA</ENT> <ENT>41</ENT> </ROW> <ROW> <ENT I="01">Charlotte, NC</ENT> <ENT>43</ENT> </ROW> <ROW> <ENT I="01">Greensboro, NC</ENT> <ENT>48</ENT> </ROW> <ROW> <ENT I="01">Nashville, TN</ENT> <ENT>51</ENT> </ROW> <ROW> <ENT I="01">Las Vegas, NV</ENT> <ENT>50</ENT> </ROW> <ROW> <ENT I="01">Nassau, NY</ENT> <ENT>13</ENT> </ROW> <ROW> <ENT I="01">Buffalo, NY</ENT> <ENT>44</ENT> </ROW> <ROW> <ENT I="01">Orange Co, CA</ENT> <ENT>15</ENT> </ROW> <ROW> <ENT I="01">Oakland, CA</ENT> <ENT>21</ENT> </ROW> <ROW> <PRTPAGE P="86"/> <ENT I="01">San Francisco, CA</ENT> <ENT>29</ENT> </ROW> <ROW> <ENT I="01">Rochester, NY</ENT> <ENT>49</ENT> </ROW> <ROW> <ENT I="01">Kansas City, KS</ENT> <ENT>28</ENT> </ROW> <ROW> <ENT I="01">Fort Worth, TX</ENT> <ENT>33</ENT> </ROW> <ROW> <ENT I="01">Hartford, CT</ENT> <ENT>46</ENT> </ROW> <ROW> <ENT I="01">Denver, CO</ENT> <ENT>26</ENT> </ROW> <ROW> <ENT I="01">Portland, OR</ENT> <ENT>27 </ENT> </ROW> <ROW EXPSTB="01"> <ENT I="21"> <E T="02">Phase IV—7/1/98-9/30/98</E> </ENT> </ROW> <ROW EXPSTB="00"> <ENT I="01">Grand Rapids, MI</ENT> <ENT>56</ENT> </ROW> <ROW> <ENT I="01">Dayton, OH</ENT> <ENT>61</ENT> </ROW> <ROW> <ENT I="01">Akron, OH</ENT> <ENT>73</ENT> </ROW> <ROW> <ENT I="01">Gary, IN</ENT> <ENT>80</ENT> </ROW> <ROW> <ENT I="01">Bergen, NJ</ENT> <ENT>42</ENT> </ROW> <ROW> <ENT I="01">Middlesex, NJ</ENT> <ENT>52</ENT> </ROW> <ROW> <ENT I="01">Monmouth, NJ</ENT> <ENT>54</ENT> </ROW> <ROW> <ENT I="01">Richmond, VA</ENT> <ENT>63</ENT> </ROW> <ROW> <ENT I="01">Memphis, TN</ENT> <ENT>53</ENT> </ROW> <ROW> <ENT I="01">Louisville, KY</ENT> <ENT>57</ENT> </ROW> <ROW> <ENT I="01">Jacksonville, FL</ENT> <ENT>58</ENT> </ROW> <ROW> <ENT I="01">Raleigh, NC</ENT> <ENT>59</ENT> </ROW> <ROW> <ENT I="01">West Palm Beach, FL</ENT> <ENT>62</ENT> </ROW> <ROW> <ENT I="01">Greenville, SC</ENT> <ENT>66</ENT> </ROW> <ROW> <ENT I="01">Honolulu, HI</ENT> <ENT>65</ENT> </ROW> <ROW> <ENT I="01">Providence, RI</ENT> <ENT>47</ENT> </ROW> <ROW> <ENT I="01">Albany, NY</ENT> <ENT>64</ENT> </ROW> <ROW> <ENT I="01">San Jose, CA</ENT> <ENT>31</ENT> </ROW> <ROW> <ENT I="01">Sacramento, CA</ENT> <ENT>36</ENT> </ROW> <ROW> <ENT I="01">Fresno, CA</ENT> <ENT>68</ENT> </ROW> <ROW> <ENT I="01">San Antonio, TX</ENT> <ENT>37</ENT> </ROW> <ROW> <ENT I="01">Oklahoma City, OK</ENT> <ENT>55</ENT> </ROW> <ROW> <ENT I="01">Austin, TX</ENT> <ENT>60</ENT> </ROW> <ROW> <ENT I="01">Salt Lake City, UT</ENT> <ENT>45</ENT> </ROW> <ROW> <ENT I="01">Tucson, AZ</ENT> <ENT>71 </ENT> </ROW> <ROW EXPSTB="01"> <ENT I="21"> <E T="02">Phase V—10/1/98-12/31/98</E> </ENT> </ROW> <ROW EXPSTB="00"> <ENT I="01">Toledo, OH</ENT> <ENT>81</ENT> </ROW> <ROW> <ENT I="01">Youngstown, OH</ENT> <ENT>85</ENT> </ROW> <ROW> <ENT I="01">Ann Arbor, MI</ENT> <ENT>95</ENT> </ROW> <ROW> <ENT I="01">Fort Wayne, IN</ENT> <ENT>100</ENT> </ROW> <ROW> <ENT I="01">Scranton, PA</ENT> <ENT>78</ENT> </ROW> <ROW> <ENT I="01">Allentown, PA</ENT> <ENT>82</ENT> </ROW> <ROW> <ENT I="01">Harrisburg, PA</ENT> <ENT>83</ENT> </ROW> <ROW> <ENT I="01">Jersey City, NJ</ENT> <ENT>88</ENT> </ROW> <ROW> <ENT I="01">Wilmington, DE</ENT> <ENT>89</ENT> </ROW> <ROW> <ENT I="01">Birmingham, AL</ENT> <ENT>67</ENT> </ROW> <ROW> <ENT I="01">Knoxville, KY</ENT> <ENT>79</ENT> </ROW> <ROW> <ENT I="01">Baton Rouge, LA</ENT> <ENT>87</ENT> </ROW> <ROW> <ENT I="01">Charleston, SC</ENT> <ENT>92</ENT> </ROW> <ROW> <ENT I="01">Sarasota, FL</ENT> <ENT>93</ENT> </ROW> <ROW> <ENT I="01">Mobile, AL</ENT> <ENT>96</ENT> </ROW> <ROW> <ENT I="01">Columbia, SC</ENT> <ENT>98</ENT> </ROW> <ROW> <ENT I="01">Tulsa, OK</ENT> <ENT>70</ENT> </ROW> <ROW> <ENT I="01">Syracuse, NY</ENT> <ENT>69</ENT> </ROW> <ROW> <ENT I="01">Springfield, MA</ENT> <ENT>86</ENT> </ROW> <ROW> <ENT I="01">Ventura, CA</ENT> <ENT>72</ENT> </ROW> <ROW> <ENT I="01">Bakersfield, CA</ENT> <ENT>84</ENT> </ROW> <ROW> <ENT I="01">Stockton, CA</ENT> <ENT>94</ENT> </ROW> <ROW> <ENT I="01">Vallejo, CA</ENT> <ENT>99</ENT> </ROW> <ROW> <ENT I="01">El Paso, TX</ENT> <ENT>74</ENT> </ROW> <ROW> <ENT I="01">Little Rock, AR</ENT> <ENT>90</ENT> </ROW> <ROW> <ENT I="01">Wichita, KS</ENT> <ENT>97</ENT> </ROW> <ROW> <ENT I="01">New Haven, CT</ENT> <ENT>91</ENT> </ROW> <ROW> <ENT I="01">Omaha, NE</ENT> <ENT>75</ENT> </ROW> <ROW> <ENT I="01">Albuquerque, NM</ENT> <ENT>76</ENT> </ROW> <ROW> <ENT I="01">Tacoma, WA</ENT> <ENT>77 </ENT> </ROW> </GPOTABLE> <CITA>[62 FR 18295, Apr. 15, 1997]</CITA> <EFFDNOT> <HD SOURCE="HED">Effective Date Note:</HD> <P>At 62 FR 18295, Apr. 15, 1997, the appendix to part 52 was revised. This appendix contains information collection and recordkeeping requirements and will not become effective until approval has been given by the Office of Management and Budget.</P> </EFFDNOT> </APPENDIX> </SUBPART> </PART> <PART> <EAR>Pt. 53</EAR> <HD SOURCE="HED">PART 53—SPECIAL PROVISIONS CONCERNING BELL OPERATING COMPANIES</HD> <CONTENTS> <SUBPART> <HD SOURCE="HED">Subpart A—General Information</HD> <SECHD>Sec.</SECHD> <SECTNO>53.1</SECTNO> <SUBJECT>Basis and purpose.</SUBJECT> <SECTNO>53.3</SECTNO> <SUBJECT>Terms and definitions.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart B—Bell Operating Company Entry into InterLATA Services</HD> <SECTNO>53.101</SECTNO> <SUBJECT>Joint marketing of local and long distance services by interLATA carriers.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart C—Separate Affiliate; Safeguards</HD> <SECTNO>53.201</SECTNO> <SUBJECT>Services for which a section 272 affiliate is required.</SUBJECT> <SECTNO>53.203</SECTNO> <SUBJECT>Structural and transactional requirements.</SUBJECT> <SECTNO>53.205</SECTNO> <SUBJECT>Fulfillment of certain requests. [Reserved]</SUBJECT> <SECTNO>53.207</SECTNO> <SUBJECT>Successor or assign.</SUBJECT> <SECTNO>53.209</SECTNO> <SUBJECT>Biennial audit.</SUBJECT> <SECTNO>53.211</SECTNO> <SUBJECT>Audit planning.</SUBJECT> <SECTNO>53.213</SECTNO> <SUBJECT>Audit analysis and evaluation.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart D—Manufacturing by Bell Operating Companies</HD> <SECTNO>53.301</SECTNO> <SUBJECT>[Reserved]</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart E—Electronic Publishing by Bell Operating Companies</HD> <SECTNO>53.401</SECTNO> <SUBJECT>[Reserved]</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart F—Alarm Monitoring Services</HD> <SECTNO>53.501</SECTNO> <SUBJECT> [Reserved]</SUBJECT> </SUBPART> </CONTENTS> <AUTH> <HD SOURCE="HED">Authority:</HD> <P>Sections 1-5, 7, 201-05, 218, 251, 253, 271-75, 48 Stat. 1070, as amended, 1077; 47 U.S.C. 151-55, 157, 201-05, 218, 251, 253, 271-75, unless otherwise noted.</P> </AUTH> <SOURCE> <HD SOURCE="HED">Source:</HD> <P>62 FR 2967, Jan. 21, 1997, unless otherwise noted.</P> </SOURCE> <SUBPART> <PRTPAGE P="87"/> <HD SOURCE="HED">Subpart A—General Information</HD> <SECTION> <SECTNO>§ 53.1</SECTNO> <SUBJECT>Basis and purpose.</SUBJECT> <P>(a) <E T="03">Basis.</E> The rules in this part are issued pursuant to the Communications Act of 1934, as amended.</P> <P>(b) <E T="03">Purpose.</E> The purpose of the rules in this part is to implement sections 271 and 272 of the Communications Act of 1934, as amended, 47 U.S.C. 271 and 272.</P> </SECTION> <SECTION> <SECTNO>§ 53.3</SECTNO> <SUBJECT>Terms and definitions.</SUBJECT> <P>Terms used in this part have the following meanings:</P> <P> <E T="03"> Act.</E> The Act means the Communications Act of 1934, as amended.</P> <P> <E T="03">Affiliate.</E> An affiliate is a person that (directly or indirectly) owns or controls, is owned or controlled by, or is under common ownership or control with, another person. For purposes of this part, the term “own” means to own an equity interest (or the equivalent thereof) of more than 10 percent.</P> <P> <E T="03">AT&T Consent Decree.</E> The AT&T Consent Decree is the order entered August 24, 1982, in the antitrust action styled <E T="03">United States</E> v. <E T="03">Western Electric,</E> Civil Action No. 82-0192, in the United States District Court for the District of Columbia, and any judgment or order with respect to such action entered on or after August 24, 1982.</P> <P> <E T="03">Bell Operating Company (BOC).</E> The term <E T="03">Bell operating company</E> </P> <P>(1) Means any of the following companies: Bell Telephone Company of Nevada, Illinois Bell Telephone Company, Indiana Bell Telephone Company, Incorporated, Michigan Bell Telephone Company, New England Telephone and Telegraph Company, New Jersey Bell Telephone Company, New York Telephone Company, U S West Communications Company, South Central Bell Telephone Company, Southern Bell Telephone and Telegraph Company, Southwestern Bell Telephone Company, The Bell Telephone Company of Pennsylvania, The Chesapeake and Potomac Telephone Company, The Chesapeake and Potomac Telephone Company of Maryland, The Chesapeake and Potomac Telephone Company of Virginia, The Chesapeake and Potomac Telephone Company of West Virginia, The Diamond State Telephone Company, The Ohio Bell Telephone Company, The Pacific Telephone and Telegraph Company, or Wisconsin Telephone Company; and</P> <P>(2) Includes any successor or assign of any such company that provides wireline telephone exchange service; but</P> <P>(3) Does not include an affiliate of any such company, other than an affiliate described in paragraphs (1) or (2) of this definition.</P> <P> <E T="03">In-Region InterLATA service</E>. <E T="03">In-region interLATA service is interLATA service</E> that originates in any of a BOC's in-region states, which are the states in which the BOC or any of its affiliates was authorized to provide wireline telephone exchange service pursuant to the reorganization plan approved under the AT&T Consent Decree, as in effect on February 7, 1996. For the purposes of this part, 800 service, private line service, or equivalent services that terminate in a BOC's in-region state and allow the called party to determine the interLATA carrier are considered to be in-region interLATA service.</P> <P> <E T="03">InterLATA Information Service.</E> An <E T="03">interLATA information service</E> is an information service that incorporates as a necessary, bundled element an interLATA telecommunications transmission component, provided to the customer for a single charge.</P> <P> <E T="03">InterLATA Service.</E> An <E T="03">interLATA service</E> is a service that involves telecommunications between a point located in a LATA and a point located outside such area. The term “interLATA service” includes both interLATA telecommunications services and interLATA information services.</P> <P> <E T="03">Local Access and Transport Area (LATA).</E> A <E T="03">LATA</E> is a contiguous geographic area:</P> <P>(1) Established before February 8, 1996 by a BOC such that no exchange area includes points within more than one metropolitan statistical area, consolidated metropolitan statistical area, or state, except as expressly permitted under the AT&T Consent Decree; or</P> <P>(2) Established or modified by a BOC after February 8, 1996 and approved by the Commission.</P> <P> <E T="03">Local Exchange Carrier (LEC).</E> A <E T="03">LEC</E> is any person that is engaged in the provision of telephone exchange service <PRTPAGE P="88"/>or exchange access. Such term does not include a person insofar as such person is engaged in the provision of commercial mobile service under section 332(c) of the Act, except to the extent that the Commission finds that such service should be included in the definition of such term.</P> <P> <E T="03">Out-of-Region InterLATA service.</E> <E T="03">Out-of-region interLATA service</E> is interLATA service that originates outside a BOC's in-region states.</P> <P> <E T="03">Section 272 affiliate.</E> A <E T="03">section 272 affiliate</E> is a BOC affiliate that complies with the separate affiliate requirements of section 272(b) of the Act and the regulations contained in this part.</P> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart B—Bell Operating Company Entry Into InterLATA Services</HD> <SECTION> <SECTNO>§ 53.101</SECTNO> <SUBJECT>Joint marketing of local and long distance services by interLATA carriers.</SUBJECT> <P>(a) Until a BOC is authorized pursuant to section 271(d) of the Act to provide interLATA services in an in-region State, or until February 8, 1999, whichever is earlier, a telecommunications carrier that serves greater than 5 percent of the Nation's presubscribed access lines may not jointly market in such State telephone exchange service obtained from such company pursuant to section 251(c)(4) of the Act with interLATA services offered by that telecommunications carrier.</P> <P>(b) For purposes of applying section 271(e) of the Act, telecommunications carriers described in paragraph (a) of this section may not:</P> <P>(1) Market interLATA services and BOC resold local exchange services through a “single transaction.” For purposes of this section, we define a “single transaction” to include the use of the same sales agent to market both products to the same customer during a single communication;</P> <P>(2) Offer interLATA services and BOC resold local exchange services as a bundled package under an integrated pricing schedule.</P> <P>(c) If a telecommunications carrier described in paragraph (a) of this section advertises the availability of interLATA services and local exchange services purchased from a BOC for resale in a single advertisement, such telecommunications carrier shall not mislead the public by stating or implying that such carrier may offer bundled packages of interLATA service and BOC local exchange service purchased for resale, or that it can provide both services through a single transaction.</P> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart C—Separate Affiliate; Safeguards</HD> <SECTION> <SECTNO>§ 53.201</SECTNO> <SUBJECT>Services for which a section 272 affiliate is required.</SUBJECT> <P>For the purposes of applying section 272(a)(2) of the Act:</P> <P>(a) <E T="03">Previously authorized activities.</E> When providing previously authorized activities described in section 271(f) of the Act, a BOC shall comply with the following:</P> <P>(1) A BOC shall provide previously authorized interLATA information services and manufacturing activities through a section 272 affiliate no later than February 8, 1997.</P> <P>(2) A BOC shall provide previously authorized interLATA telecommunications services in accordance with the terms and conditions of the orders entered by the United States District Court for the District of Columbia pursuant to section VII or VIII(C) of the AT&T Consent Decree that authorized such services.</P> <P>(b) <E T="03">InterLATA information services.</E> A BOC shall provide an interLATA information service through a section 272 affiliate when it provides the interLATA telecommunications transmission component of the service either over its own facilities, or by reselling the interLATA telecommunications services of an interexchange provider.</P> <P>(c) <E T="03">Out-of-region interLATA information services.</E> A BOC shall provide out-of-region interLATA information services through a section 272 affiliate.</P> </SECTION> <SECTION> <SECTNO>§ 53.203</SECTNO> <SUBJECT>Structural and transactional requirements.</SUBJECT> <P>(a) <E T="03">Operational independence.</E> (1) A section 272 affiliate and the BOC of which it is an affiliate shall not jointly own transmission and switching facilities or the land and buildings where those facilities are located.<PRTPAGE P="89"/> </P> <P>(2) A section 272 affiliate shall not perform any operating, installation, or maintenance functions associated with facilities owned by the BOC of which it is an affiliate.</P> <P>(3) A BOC or BOC affiliate, other than the section 272 affiliate itself, shall not perform any operating, installation, or maintenance functions associated with facilities that the BOC's section 272 affiliate owns or leases from a provider other than the BOC.</P> <P>(b) <E T="03">Separate books, records, and accounts.</E> A section 272 affiliate shall maintain books, records, and accounts, which shall be separate from the books, records, and accounts maintained by the BOC of which it is an affiliate.</P> <P>(c) <E T="03">Separate officers, directors, and employees.</E> A section 272 affiliate shall have separate officers, directors, and employees from the BOC of which it is an affiliate.</P> <P>(d) <E T="03">Credit arrangements.</E> A section 272 affiliate shall not obtain credit under any arrangement that would permit a creditor, upon default, to have recourse to the assets of the BOC of which it is an affiliate.</P> <P>(e) <E T="03">Arm's-length transactions.</E> A section 272 affiliate shall conduct all transactions with the BOC of which it is an affiliate on an arm's length basis, pursuant to the accounting rules described in § 32.27 of this chapter, with any such transactions reduced to writing and available for public inspection.</P> <EFFDNOT> <HD SOURCE="HED">Effective Date Note:</HD> <P>At 62 FR 2967, Jan. 21, 1997, § 53.203 was added. Paragraphs (b) and (e) of this section contain information collection requirements and will not become effective until approval is given by the Office of Management and Budget.</P> </EFFDNOT> </SECTION> <SECTION> <SECTNO>§ 53.205</SECTNO> <SUBJECT>Fulfillment of certain requests. [Reserved]</SUBJECT> </SECTION> <SECTION> <SECTNO>§ 53.207</SECTNO> <SUBJECT>Successor or assign.</SUBJECT> <P>If a BOC transfers to an affiliated entity ownership of any network elements that must be provided on an unbundled basis pursuant to section 251(c)(3) of the Act, such entity will be deemed to be an “assign” of the BOC under section 3(4) of the Act with respect to such transferred network elements. A BOC affiliate shall not be deemed a “successor or assign” of a BOC solely because it obtains network elements from the BOC pursuant to section 251(c)(3) of the Act.</P> <CITA>[62 FR 2967, Jan. 21, 1997; 63 FR 34604, June 25, 1998]</CITA> </SECTION> <SECTION> <SECTNO>§ 53.209</SECTNO> <SUBJECT>Biennial audit.</SUBJECT> <P>(a) A Bell operating company required to operate a separate affiliate under section 272 of the Act shall obtain and pay for a Federal/State joint audit every two years conducted by an independent auditor to determine whether the Bell operating company has complied with the rules promulgated under section 272 and particularly the audit requirements listed in paragraph (b) of this section.</P> <P>(b) The independent audit shall determine:</P> <P>(1) Whether the separate affiliate required under section 272 of the Act has:</P> <P>(i) Operated independently of the Bell operating company;</P> <P>(ii) Maintained books, records, and accounts in the manner prescribed by the Commission that are separate from the books, records and accounts maintained by the Bell operating company;</P> <P>(iii) Officers, directors and employees that are separate from those of the Bell operating company;</P> <P>(iv) Not obtained credit under any arrangement that would permit a creditor, upon default, to have recourse to the assets of the Bell operating company; and</P> <P>(v) Conducted all transactions with the Bell operating company on an arm's length basis with the transactions reduced to writing and available for public inspection.</P> <P>(2) Whether or not the Bell operating company has:</P> <P>(i) Discriminated between the separate affiliate and any other entity in the provision or procurement of goods, services, facilities, and information, or the establishment of standards;</P> <P>(ii) Accounted for all transactions with the separate affiliate in accordance with the accounting principles and rules approved by the Commission.</P> <P>(3) Whether or not the Bell operating company and an affiliate subject to section 251(c) of the Act:</P> <P>(i) Have fulfilled requests from unaffiliated entities for telephone exchange service and exchange access within a period no longer than the period in <PRTPAGE P="90"/>which it provides such telephone exchange service and exchange access to itself or its affiliates;</P> <P>(ii) Have made available facilities, services, or information concerning its provision of exchange access to other providers of interLATA services on the same terms and conditions as it has to its affiliate required under section 272 that operates in the same market;</P> <P>(iii) Have charged its separate affiliate under section 272, or imputed to itself (if using the access for its provision of its own services), an amount for access to its telephone exchange service and exchange access that is no less than the amount charged to any unaffiliated interexchange carriers for such service; and</P> <P>(iv) Have provided any interLATA or intraLATA facilities or services to its interLATA affiliate and made available such services or facilities to all carriers at the same rates and on the same terms and conditions, and allocated the associated costs appropriately.</P> <P>(c) An independent audit shall be performed on the first full year of operations of the separate affiliate required under section 272 of the Act, and biennially thereafter.</P> <P>(d) The Chief, Common Carrier Bureau, shall work with the regulatory agencies in the states having jurisdiction over the Bell operating company's local telephone services, to attempt to form a Federal/State joint audit team with the responsibility for overseeing the planning of the audit as specified in § 53.211 and the analysis and evaluation of the audit as specified in § 53.213. The Federal/State joint audit team may direct the independent auditor to take any actions necessary to ensure compliance with the audit requirements listed in paragraph (b) of this section. If the state regulatory agencies having jurisdiction choose not to participate in the Federal/State joint audit team, the Chief, Common Carrier Bureau, shall establish an FCC audit team to oversee and direct the independent auditor to take any actions necessary to ensure compliance with the audit requirements in paragraph (b) of this section.</P> <CITA>[62 FR 2926, Jan. 21, 1997]</CITA> </SECTION> <SECTION> <SECTNO>§ 53.211</SECTNO> <SUBJECT>Audit planning.</SUBJECT> <P>(a) Before selecting a independent auditor, the Bell operating company shall submit preliminary audit requirements, including the proposed scope of the audit and the extent of compliance and substantive testing, to the Federal/State joint audit team organized pursuant to § 53.209(d);</P> <P>(b) The Federal/State joint audit team shall review the preliminary audit requirements to determine whether it is adequate to meet the audit requirements in § 53.209 (b). The Federal/State joint audit shall have 30 days to review the audit requirements and determine any modifications that shall be incorporated into the final audit requirements.</P> <P>(c) After the audit requirements have been approved by the Federal/State joint audit team, the Bell operating company shall engage within 30 days an independent auditor to conduct the biennial audit. In making its selection, the Bell operating company shall not engage any independent auditor who has been instrumental during the past two years in designing any of the accounting or reporting systems under review in the biennial audit.</P> <P>(d) The independent auditor selected by the Bell operating company to conduct the audit shall develop a detailed audit program based on the final audit requirements and submit it to the Federal/State joint audit team. The Federal/State joint audit team shall have 30 days to review the audit program and determine any modifications that shall be incorporated into the final audit program.</P> <P>(e) During the course of the biennial audit, the independent auditor, among other things, shall:</P> <P>(1) Inform the Federal/State joint audit team of any revisions to the final audit program or to the scope of the audit.</P> <P>(2) Notify the Federal/State joint audit team of any meetings with the Bell operating company or its separate affiliate in which audit findings are discussed.<PRTPAGE P="91"/> </P> <P>(3) Submit to the Chief, Common Carrier Bureau, any accounting or rule interpretations necessary to complete the audit.</P> <CITA>[62 FR 2926, Jan. 21, 1997]</CITA> </SECTION> <SECTION> <SECTNO>§ 53.213</SECTNO> <SUBJECT>Audit analysis and evaluation.</SUBJECT> <P>(a) Within 60 dates after the end of the audit period, but prior to discussing the audit findings with the Bell operating company or the separate affiliate, the independent auditor shall submit a draft of the audit report to the Federal/State joint audit team.</P> <P>(1) The Federal/State joint audit team shall have 45 days to review the audit findings and audit workpapers, and offer its recommendations concerning the conduct of the audit or the audit findings to the independent auditor. Exceptions of the Federal/State joint audit team to the finding and conclusions of the independent auditor that remain unresolved shall be included in the final audit report.</P> <P>(2) Within 15 days after receiving the Federal/State joint audit team's recommendations and making appropriate revisions to the audit report, the independent auditor shall submit the audit report to the Bell operating company for its response to the audit findings and send a copy to the Federal/State joint audit team. The independent auditor may request additional time to perform additional audit work as recommended by the Federal/State joint audit team.</P> <P>(b) Within 30 days after receiving the audit report, the Bell operating company will respond to the audit findings and send a copy of its response to the Federal/State joint audit team. The Bell operating company's response shall be included as part of the final audit report along with any reply that the independent auditor wishes to make to the response.</P> <P>(c) Within 10 days after receiving the response of the Bell operating company, the independent auditor shall make available for public inspection the final audit report by filing it with the Commission and the state regulatory agencies participating on the joint audit team.</P> <P>(d) Interested parties may file comments with the Commission within 60 days after the audit report is made available for public inspection.</P> <CITA>[62 FR 2927, Jan. 21, 1997]</CITA> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart D—Manufacturing by Bell Operating Companies</HD> <SECTION> <SECTNO>§ 53.301</SECTNO> <SUBJECT>[Reserved]</SUBJECT> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart E—Electronic Publishing by Bell Operating Companies</HD> <SECTION> <SECTNO>§ 53.401</SECTNO> <SUBJECT>[Reserved]</SUBJECT> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart F—Alarm Monitoring Services</HD> <SECTION> <SECTNO>§ 53.501</SECTNO> <SUBJECT>[Reserved]</SUBJECT> </SECTION> </SUBPART> </PART> <PART> <EAR>Pt. 54</EAR> <HD SOURCE="HED">PART 54—UNIVERSAL SERVICE</HD> <CONTENTS> <SUBPART> <HD SOURCE="HED">Subpart A—General Information</HD> <SECHD>Sec.</SECHD> <SECTNO>54.1</SECTNO> <SUBJECT>Basis and purpose.</SUBJECT> <SECTNO>54.5</SECTNO> <SUBJECT>Terms and definitions.</SUBJECT> <SECTNO>54.7</SECTNO> <SUBJECT>Intended use of federal universal service support.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart B—Services Designated for Support</HD> <SECTNO>54.101</SECTNO> <SUBJECT>Supported services for rural, insular and high cost areas.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart C—Carriers Eligible for Universal Service Support</HD> <SECTNO>54.201</SECTNO> <SUBJECT>Definition of eligible telecommunications carriers, generally.</SUBJECT> <SECTNO>54.203</SECTNO> <SUBJECT>Designation of eligible telecommunications carriers for unserved areas.</SUBJECT> <SECTNO>54.205</SECTNO> <SUBJECT>Relinquishment of universal service.</SUBJECT> <SECTNO>54.207</SECTNO> <SUBJECT>Service areas.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart D—Universal Service Support for High Cost Areas</HD> <SECTNO>54.301</SECTNO> <SUBJECT>Local switching support.</SUBJECT> <SECTNO>54.303</SECTNO> <SUBJECT>Long term support.</SUBJECT> <SECTNO>54.305</SECTNO> <SUBJECT>Sale or transfer of exchanges.</SUBJECT> <SECTNO>54.307</SECTNO> <SUBJECT>Support to a competitive eligible telecommunications carrier.</SUBJECT> <SECTNO>54.309</SECTNO> <SUBJECT>Calculation and distribution of forward-looking support for non-rural carriers.</SUBJECT> <SECTNO>54.311</SECTNO> <SUBJECT>Interim hold-harmless support for non-rural carriers.</SUBJECT> <SECTNO>54.313</SECTNO> <SUBJECT>State certification.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart E—Universal Service Support for Low Income Consumers</HD> <SECTNO>54.400</SECTNO> <SUBJECT>Terms and definitions.<PRTPAGE P="92"/> </SUBJECT> <SECTNO>54.401</SECTNO> <SUBJECT>Lifeline defined.</SUBJECT> <SECTNO>54.403</SECTNO> <SUBJECT>Lifeline support amount.</SUBJECT> <SECTNO>54.405</SECTNO> <SUBJECT>Carrier obligation to offer Lifeline.</SUBJECT> <SECTNO>54.407</SECTNO> <SUBJECT>Reimbursement for offering Lifeline.</SUBJECT> <SECTNO>54.409</SECTNO> <SUBJECT>Consumer qualification for Lifeline.</SUBJECT> <SECTNO>54.411</SECTNO> <SUBJECT>Link Up program defined.</SUBJECT> <SECTNO>54.413</SECTNO> <SUBJECT>Reimbursement for revenue forgone in offering a Link Up program.</SUBJECT> <SECTNO>54.415</SECTNO> <SUBJECT>Consumer qualification for Link Up.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart F—Universal Service Support for Schools and Libraries</HD> <SECTNO>54.500</SECTNO> <SUBJECT>Terms and definitions.</SUBJECT> <SECTNO>54.501</SECTNO> <SUBJECT>Eligibility for services provided by telecommunications carriers.</SUBJECT> <SECTNO>54.502</SECTNO> <SUBJECT>Supported telecommunications services.</SUBJECT> <SECTNO>54.503</SECTNO> <SUBJECT>Other supported special services.</SUBJECT> <SECTNO>54.504</SECTNO> <SUBJECT>Requests for services.</SUBJECT> <SECTNO>54.505</SECTNO> <SUBJECT>Discounts.</SUBJECT> <SECTNO>54.506</SECTNO> <SUBJECT>Internal connections.</SUBJECT> <SECTNO>54.507</SECTNO> <SUBJECT>Cap.</SUBJECT> <SECTNO>54.509</SECTNO> <SUBJECT>Adjustments to the discount matrix.</SUBJECT> <SECTNO>54.511</SECTNO> <SUBJECT>Ordering services.</SUBJECT> <SECTNO>54.513</SECTNO> <SUBJECT>Resale.</SUBJECT> <SECTNO>54.515</SECTNO> <SUBJECT>Distributing support.</SUBJECT> <SECTNO>54.516</SECTNO> <SUBJECT>Auditing.</SUBJECT> <SECTNO>54.517</SECTNO> <SUBJECT>Services provided by non-telecommunications carriers.</SUBJECT> <SECTNO>54.518</SECTNO> <SUBJECT>Support for wide area networks.</SUBJECT> <SECTNO>54.519</SECTNO> <SUBJECT>State telecommunications networks.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart G—Universal Service Support for Health Care Providers</HD> <SECTNO>54.601</SECTNO> <SUBJECT>Eligibility.</SUBJECT> <SECTNO>54.603</SECTNO> <SUBJECT>Competitive bid requirements.</SUBJECT> <SECTNO>54.604</SECTNO> <SUBJECT>Existing contracts.</SUBJECT> <SECTNO>54.605</SECTNO> <SUBJECT>Determining the urban rate.</SUBJECT> <SECTNO>54.607</SECTNO> <SUBJECT>Determining the rural rate.</SUBJECT> <SECTNO>54.609</SECTNO> <SUBJECT>Calculating support.</SUBJECT> <SECTNO>54.611</SECTNO> <SUBJECT>Distributing support.</SUBJECT> <SECTNO>54.613</SECTNO> <SUBJECT>Limitations on supported services for rural health care providers.</SUBJECT> <SECTNO>54.615</SECTNO> <SUBJECT>Obtaining services.</SUBJECT> <SECTNO>54.617</SECTNO> <SUBJECT>Resale.</SUBJECT> <SECTNO>54.619</SECTNO> <SUBJECT>Audit program.</SUBJECT> <SECTNO>54.621</SECTNO> <SUBJECT>Access to advanced telecommunications and information services.</SUBJECT> <SECTNO>54.623</SECTNO> <SUBJECT>Cap.</SUBJECT> <SECTNO>54.625</SECTNO> <SUBJECT>Support for services beyond the maximum supported distance for rural health care providers.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart H—Administration</HD> <SECTNO>54.701</SECTNO> <SUBJECT>Administrator of universal service support mechanisms.</SUBJECT> <SECTNO>54.702</SECTNO> <SUBJECT>Administrator's functions and responsibilities.</SUBJECT> <SECTNO>54.703</SECTNO> <SUBJECT>The Administrator's Board of Directors.</SUBJECT> <SECTNO>54.704</SECTNO> <SUBJECT>The Administrator's Chief Executive Officer.</SUBJECT> <SECTNO>54.705</SECTNO> <SUBJECT>Committees of the Administrator's Board of Directors.</SUBJECT> <SECTNO>54.706</SECTNO> <SUBJECT>Contributions.</SUBJECT> <SECTNO>54.707</SECTNO> <SUBJECT>Audit controls.</SUBJECT> <SECTNO>54.708</SECTNO> <SUBJECT>De minimis exemption.</SUBJECT> <SECTNO>54.709</SECTNO> <SUBJECT>Computations of required contributions to universal service support mechanisms.</SUBJECT> <SECTNO>54.711</SECTNO> <SUBJECT>Contributor reporting requirements.</SUBJECT> <SECTNO>54.713</SECTNO> <SUBJECT>Contributors' failure to report or to contribute.</SUBJECT> <SECTNO>54.715</SECTNO> <SUBJECT>Administrative expenses of the Administrator.</SUBJECT> <SECTNO>54.717</SECTNO> <SUBJECT>Audits of the Administrator.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart I—Review of Decisions Issued by the Administrator</HD> <SECTNO>54.719</SECTNO> <SUBJECT>Parties permitted to seek review of Administrator decisions.</SUBJECT> <SECTNO>54.720</SECTNO> <SUBJECT>Filing deadlines.</SUBJECT> <SECTNO>54.721</SECTNO> <SUBJECT>General filing requirements.</SUBJECT> <SECTNO>54.722</SECTNO> <SUBJECT>Review by the Common Carrier Bureau or the Commission.</SUBJECT> <SECTNO>54.723</SECTNO> <SUBJECT>Standard of review.</SUBJECT> <SECTNO>54.724</SECTNO> <SUBJECT>Time periods for Commission approval of Administrator decisions.</SUBJECT> <SECTNO>54.725</SECTNO> <SUBJECT>Universal service disbursements during pendency of a request for review and Administrator decision.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart J—Interstate Access Universal Service Support Mechanism</HD> <SECTNO>54.800</SECTNO> <SUBJECT>Terms and definitions.</SUBJECT> <SECTNO>54.801</SECTNO> <SUBJECT>General.</SUBJECT> <SECTNO>54.802</SECTNO> <SUBJECT>Obligations of local exchange carriers and the Administrator.</SUBJECT> <SECTNO>54.803</SECTNO> <SUBJECT>Universal service zones.</SUBJECT> <SECTNO>54.804</SECTNO> <SUBJECT>Preliminary minimum access universal service support for a study area calculated by the Administrator.</SUBJECT> <SECTNO>54.805</SECTNO> <SUBJECT>Zone and study area above benchmark revenues calculated by the Administrator.</SUBJECT> <SECTNO>54.806</SECTNO> <SUBJECT>Calculation by the Administrator of interstate access universal service support for areas served by price cap local exchange carriers.</SUBJECT> <SECTNO>54.807</SECTNO> <SUBJECT>Interstate access universal service support.</SUBJECT> <SECTNO>54.808</SECTNO> <SUBJECT>Transition provisions and periodic calculation.</SUBJECT> <SECTNO>54.809</SECTNO> <SUBJECT>Carrier certification.</SUBJECT> </SUBPART> </CONTENTS> <AUTH> <HD SOURCE="HED">Authority:</HD> <P>47 U.S.C. 1, 4(i), 201, 205, 214, and 254 unless otherwise noted.</P> </AUTH> <SOURCE> <HD SOURCE="HED">Source:</HD> <P>62 FR 32948, June 17, 1997, unless otherwise noted.</P> </SOURCE> <SUBPART> <HD SOURCE="HED">Subpart A—General Information</HD> <SECTION> <SECTNO>§ 54.1</SECTNO> <SUBJECT>Basis and purpose.</SUBJECT> <P>(a) <E T="03">Basis.</E> These rules are issued pursuant to the Communications Act of 1934, as amended.</P> <P>(b) <E T="03">Purpose.</E> The purpose of these rules is to implement section 254 of the <PRTPAGE P="93"/>Communications Act of 1934, as amended, 47 USC 254.</P> </SECTION> <SECTION> <SECTNO>§ 54.5</SECTNO> <SUBJECT>Terms and definitions.</SUBJECT> <P>Terms used in this part have the following meanings:</P> <P> <E T="03">Act.</E> The term “Act” refers to the Communications Act of 1934, as amended.</P> <P> <E T="03">Administrator</E>. The term “Administrator” shall refer to the Universal Service Administrative Company that is an independent subsidiary of the National Exchange Carrier Association, Inc., and that has been appointed the permanent Administrator of the federal universal service support mechanisms.</P> <P> <E T="03">Competitive eligible telecommunications carrier.</E> A “competitive eligible telecommunications carrier” is a carrier that meets the definition of an “eligible telecommunications carrier” below and does not meet the definition of an “incumbent local exchange carrier” in § 51.5 of this chapter.</P> <P> <E T="03">Contributor.</E> The term “contributor” shall refer to an entity required to contribute to the universal service support mechanisms pursuant to § 54.703.</P> <P> <E T="03">Eligible telecommunications carrier.</E> “Eligible telecommunications carrier” means a carrier designated as such by a state commission pursuant to § 54.201.</P> <P> <E T="03">Incumbent local exchange carrier.</E> “Incumbent local exchange carrier” or “ILEC” has the same meaning as that term is defined in § 51.5 of this chapter.</P> <P> <E T="03">Information service.</E> “Information service” is the offering of a capability for generating, acquiring, storing, transforming, processing, retrieving, utilizing, or making available information via telecommunications, and includes electronic publishing, but does not include any use of any such capability for the management, control, or operation of a telecommunications system or the management of a telecommunications service.</P> <P> <E T="03">Internet access.</E> “Internet access” includes the following elements:</P> <P>(1) The transmission of information as common carriage;</P> <P>(2) The transmission of information as part of a gateway to an information service, when that transmission does not involve the generation or alteration of the content of information, but may include data transmission, address translation, protocol conversion, billing management, introductory information content, and navigational systems that enable users to access information services, and that do not affect the presentation of such information to users; and</P> <P>(3) Electronic mail services (e-mail).</P> <P> <E T="03">Interstate telecommunication.</E> “Interstate telecommunication” is a communication or transmission:</P> <P>(1) From any State, Territory, or possession of the United States (other than the Canal zone), or the District of Columbia, to any other State, Territory, or possession of the United States (other than the Canal Zone), or the District of Columbia,</P> <P>(2) From or to the United States to or from the Canal Zone, insofar as such communication or transmission takes place within the United States, or</P> <P>(3) Between points within the United States but through a foreign country.</P> <P> <E T="03">Interstate transmission.</E> “Interstate transmission” is the same as interstate telecommunication.</P> <P> <E T="03">Intrastate telecommunication.</E> “Intrastate telecommunication” is a communication or transmission from within any State, Territory, or possession of the United States, or the District of Columbia to a location within that same State, Territory, or possession of the United States, or the District of Columbia.</P> <P> <E T="03">Intrastate transmission.</E> “Intrastate transmission” is the same as intrastate telecommunication.</P> <P> <E T="03">LAN.</E> “LAN” is a local area network, which is a set of high-speed links connecting devices, generally computers, on a single shared medium, usually on the user's premises.</P> <P> <E T="03">Rural area.</E> A “rural area” is a nonmetropolitan county or county equivalent, as defined in the Office of Management and Budget's (OMB) Revised Standards for Defining Metropolitan Areas in the 1990s and identifiable from the most recent Metropolitan Statistical Area (MSA) list released by OMB, or any contiguous non-urban Census Tract or Block Numbered Area within an MSA-listed metropolitan county identified in the most recent Goldsmith Modification published by the Office of Rural Health Policy of the <PRTPAGE P="94"/>U.S. Department of Health and Human Services.</P> <P> <E T="03">Rural telephone company.</E> “Rural telephone company” has the same meaning as that term is defined in § 51.5 of this chapter.</P> <P> <E T="03">State commission.</E> The term “state commission” means the commission, board or official (by whatever name designated) that, under the laws of any state, has regulatory jurisdiction with respect to intrastate operations of carriers.</P> <P> <E T="03">Technically feasible</E>. “Technically feasible” means capable of accomplishment as evidenced by prior success under similar circumstances. For example, preexisting access at a particular point evidences the technical feasibility of access at substantially similar points. A determination of technical feasibility does not consider economic, accounting, billing, space or site except that space and site may be considered if there is no possibility of expanding available space.</P> <P> <E T="03">Telecommunications</E>. “Telecommunications” is the transmission, between or among points specified by the user, of information of the user's choosing, without change in the form or content of the information as sent and received.</P> <P> <E T="03">Telecommunications carrier</E>. A “telecommunications carrier” is any provider of telecommunications services, except that such term does not include aggregators of telecommunications services as defined in section 226 of the Act. A telecommunications carrier shall be treated as a common carrier under the Act only to the extent that it is engaged in providing telecommunications services, except that the Commission shall determine whether the provision of fixed and mobile satellite service shall be treated as common carriage. This definition includes cellular mobile radio service (CMRS) providers, interexchange carriers (IXCs) and, to the extent they are acting as telecommunications carriers, companies that provide both telecommunications and information services. Private mobile radio service (PMRS) providers are telecommunications carriers to the extent they provide domestic or international telecommunications for a fee directly to the public.</P> <P> <E T="03">Telecommunications channel</E>. “Telecommunications channel” means a telephone line, or, in the case of wireless communications, a transmittal line or cell site.</P> <P> <E T="03">Telecommunications service</E>. “Telecommunications service” is the offering of telecommunications for a fee directly to the public, or to such classes of users as to be effectively available directly to the public, regardless of the facilities used.</P> <P> <E T="03">Website</E>. The term “website” shall refer to any websites operated by the Administrator in connection with the schools and libraries support mechanism, the rural health care support mechanism, the high cost mechanism, and the low income mechanism.</P> <P> <E T="03">Wire center.</E> A wire center is the location of a local switching facility containing one or more central offices, as defined in the Appendix to part 36 of this chapter. The wire center boundaries define the area in which all customers served by a given wire center are located.</P> <CITA>[62 FR 32948, June 17, 1997, as amended at 62 FR 41303, Aug. 1, 1997; 63 FR 70571, Dec. 21, 1998; 64 FR 67431, Dec. 1, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.7</SECTNO> <SUBJECT>Intended use of federal universal service support.</SUBJECT> <P>A carrier that receives federal universal service support shall use that support only for the provision, maintenance, and upgrading of facilities and services for which the support is intended.</P> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart B—Services Designated for Support</HD> <SECTION> <SECTNO>§ 54.101</SECTNO> <SUBJECT>Supported services for rural, insular and high cost areas.</SUBJECT> <P>(a) <E T="03">Services designated for support.</E> The following services or functionalities shall be supported by federal universal service support mechanisms:</P> <P>(1) <E T="03">Voice grade access to the public switched network</E>. “Voice grade access” is defined as a functionality that enables a user of telecommunications services to transmit voice communications, including signalling the network that the caller wishes to place a call, and to receive voice communications, <PRTPAGE P="95"/>including receiving a signal indicating there is an incoming call. For the purposes of this part, bandwidth for voice grade access should be, at a minimum, 300 to 3,000 Hertz;</P> <P>(2) <E T="03">Local usage</E>. “Local usage” means an amount of minutes of use of exchange service, prescribed by the Commission, provided free of charge to end users;</P> <P>(3) <E T="03">Dual tone multi-frequency signaling or its functional equivalent</E>. “Dual tone multi-frequency” (DTMF) is a method of signaling that facilitates the transportation of signaling through the network, shortening call set-up time;</P> <P>(4) <E T="03">Single-party service or its functional equivalent</E>. “Single-party service” is telecommunications service that permits users to have exclusive use of a wireline subscriber loop or access line for each call placed, or, in the case of wireless telecommunications carriers, which use spectrum shared among users to provide service, a dedicated message path for the length of a user's particular transmission;</P> <P>(5) <E T="03">Access to emergency services</E>. “Access to emergency services” includes access to services, such as 911 and enhanced 911, provided by local governments or other public safety organizations. 911 is defined as a service that permits a telecommunications user, by dialing the three-digit code “911,” to call emergency services through a Public Service Access Point (PSAP) operated by the local government. “Enhanced 911” is defined as 911 service that includes the ability to provide automatic numbering information (ANI), which enables the PSAP to call back if the call is disconnected, and automatic location information (ALI), which permits emergency service providers to identify the geographic location of the calling party. “Access to emergency services” includes access to 911 and enhanced 911 services to the extent the local government in an eligible carrier's service area has implemented 911 or enhanced 911 systems;</P> <P>(6) <E T="03">Access to operator services</E>. “Access to operator services” is defined as access to any automatic or live assistance to a consumer to arrange for billing or completion, or both, of a telephone call;</P> <P>(7) <E T="03">Access to interexchange service</E>. “Access to interexchange service” is defined as the use of the loop, as well as that portion of the switch that is paid for by the end user, or the functional equivalent of these network elements in the case of a wireless carrier, necessary to access an interexchange carrier's network;</P> <P>(8) <E T="03">Access to directory assistance</E>. “Access to directory assistance” is defined as access to a service that includes, but is not limited to, making available to customers, upon request, information contained in directory listings; and</P> <P>(9) <E T="03">Toll limitation for qualifying low-income consumers</E>. Toll limitation for qualifying low-income consumers is described in subpart E of this part.</P> <P>(b) <E T="03">Requirement to offer all designated services</E>. An eligible telecommunications carrier must offer each of the services set forth in paragraph (a) of this section in order to receive federal universal service support.</P> <P>(c) <E T="03">Additional time to complete network upgrades</E>. A state commission may grant the petition of a telecommunications carrier that is otherwise eligible to receive universal service support under § 54.201 requesting additional time to complete the network upgrades needed to provide single-party service, access to enhanced 911 service, or toll limitation. If such petition is granted, the otherwise eligible telecommunications carrier will be permitted to receive universal service support for the duration of the period designated by the state commission. State commissions should grant such a request only upon a finding that exceptional circumstances prevent an otherwise eligible telecommunications carrier from providing single-party service, access to enhanced 911 service, or toll limitation. The period should extend only as long as the relevant state commission finds that exceptional circumstances exist and should not extend beyond the time that the state commission deems necessary for that eligible telecommunications carrier to complete network upgrades. An otherwise eligible telecommunications carrier that is incapable of offering one or more of these three specific universal services must demonstrate to the state commission that exceptional circumstances <PRTPAGE P="96"/>exist with respect to each service for which the carrier desires a grant of additional time to complete network upgrades.</P> <CITA>[62 FR 32948, June 17, 1997, as amended at 63 FR 2125, Jan. 13, 1998; 63 FR 33585, June 19, 1998]</CITA> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart C—Carriers Eligible for Universal Service Support</HD> <SECTION> <SECTNO>§ 54.201</SECTNO> <SUBJECT>Definition of eligible telecommunications carriers, generally.</SUBJECT> <P>(a) <E T="03">Carriers eligible to receive support.</E> (1) Beginning January 1, 1998, only eligible telecommunications carriers designated under paragraphs (b) through (d) of this section shall receive universal service support distributed pursuant to part 36 and part 69 of this chapter, and subparts D and E of this part.</P> <P>(2) A state commission that is unable to designate as an eligible telecommunications carrier, by January 1, 1998, a carrier that sought such designation before January 1, 1998, may, once it has designated such carrier, file with the Commission a petition for waiver of paragraph (a)(1) of this section requesting that the carrier receive universal service support retroactive to January 1, 1998. The state commission must explain why it did not designate such carrier as eligible by January 1, 1998, and provide a justification for why providing support retroactive to January 1, 1998, serves the public interest.</P> <P>(3) This paragraph does not apply to offset or reimbursement support distributed pursuant to subpart G of this part.</P> <P>(4) This paragraph does not apply to support distributed pursuant to subpart F of this part.</P> <P>(b) A state commission shall upon its own motion or upon request designate a common carrier that meets the requirements of paragraph (d) of this section as an eligible telecommunications carrier for a service area designated by the state commission.</P> <P>(c) Upon request and consistent with the public interest, convenience, and necessity, the state commission may, in the case of an area served by a rural telephone company, and shall, in the case of all other areas, designate more than one common carrier as an eligible telecommunications carrier for a service area designated by the state commission, so long as each additional requesting carrier meets the requirements of paragraph (d) of this section. Before designating an additional eligible telecommunications carrier for an area served by a rural telephone company, the state commission shall find that the designation is in the public interest.</P> <P>(d) A common carrier designated as an eligible telecommunications carrier under this section shall be eligible to receive universal service support in accordance with section 254 of the Act and shall, throughout the service area for which the designation is received:</P> <P>(1) Offer the services that are supported by federal universal service support mechanisms under subpart B of this part and section 254(c) of the Act, either using its own facilities or a combination of its own facilities and resale of another carrier's services (including the services offered by another eligible telecommunications carrier); and</P> <P>(2) Advertise the availability of such services and the charges therefore using media of general distribution.</P> <P>(e) For the purposes of this section, the term <E T="03">facilities</E> means any physical components of the telecommunications network that are used in the transmission or routing of the services that are designated for support pursuant to subpart B of this part.</P> <P>(f) For the purposes of this section, the term “own facilities” includes, but is not limited to, facilities obtained as unbundled network elements pursuant to part 51 of this chapter, provided that such facilities meet the definition of the term “facilities” under this subpart.</P> <P>(g) A state commission shall not require a common carrier, in order to satisfy the requirements of paragraph (d)(1) of this section, to use facilities that are located within the relevant service area, as long as the carrier uses facilities to provide the services designated for support pursuant to subpart B of this part within the service area.</P> <P>(h) A state commission shall designate a common carrier that meets the requirements of this section as an <PRTPAGE P="97"/>eligible telecommunications carrier irrespective of the technology used by such carrier.</P> <P>(i) A state commission shall not designate as an eligible telecommunications carrier a telecommunications carrier that offers the services supported by federal universal service support mechanisms exclusively through the resale of another carrier's services.</P> <CITA>[62 FR 32948, June 17, 1997, as amended at 63 FR 2125, Jan. 13, 1998; 64 FR 62123, Nov. 16, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.203</SECTNO> <SUBJECT>Designation of eligible telecommunications carriers for unserved areas.</SUBJECT> <P>(a) If no common carrier will provide the services that are supported by federal universal service support mechanisms under section 254(c) of the Act and subpart B of this part to an unserved community or any portion thereof that requests such service, the Commission, with respect to interstate services, or a state commission, with respect to intrastate services, shall determine which common carrier or carriers are best able to provide such service to the requesting unserved community or portion thereof and shall order such carrier or carriers to provide such service for that unserved community or portion thereof.</P> <P>(b) Any carrier or carriers ordered to provide such service under this section shall meet the requirements of section 54.201(d) and shall be designated as an eligible telecommunications carrier for that community or portion thereof.</P> </SECTION> <SECTION> <SECTNO>§ 54.205</SECTNO> <SUBJECT>Relinquishment of universal service.</SUBJECT> <P>(a) A state commission shall permit an eligible telecommunications carrier to relinquish its designation as such a carrier in any area served by more than one eligible telecommunications carrier. An eligible telecommunications carrier that seeks to relinquish its eligible telecommunications carrier designation for an area served by more than one eligible telecommunications carrier shall give advance notice to the state commission of such relinquishment.</P> <P>(b) Prior to permitting a telecommunications carrier designated as an eligible telecommunications carrier to cease providing universal service in an area served by more than one eligible telecommunications carrier, the state commission shall require the remaining eligible telecommunications carrier or carriers to ensure that all customers served by the relinquishing carrier will continue to be served, and shall require sufficient notice to permit the purchase or construction of adequate facilities by any remaining eligible telecommunications carrier. The state commission shall establish a time, not to exceed one year after the state commission approves such relinquishment under this section, within which such purchase or construction shall be completed.</P> </SECTION> <SECTION> <SECTNO>§ 54.207</SECTNO> <SUBJECT>Service areas.</SUBJECT> <P>(a) The term <E T="03">service area</E> means a geographic area established by a state commission for the purpose of determining universal service obligations and support mechanisms. A service area defines the overall area for which the carrier shall receive support from federal universal service support mechanisms.</P> <P>(b) In the case of a service area served by a rural telephone company, <E T="03">service area</E> means such company's “study area” unless and until the Commission and the states, after taking into account recommendations of a Federal-State Joint Board instituted under section 410(c) of the Act, establish a different definition of service area for such company.</P> <P>(c) If a state commission proposes to define a service area served by a rural telephone company to be other than such company's study area, the Commission will consider that proposed definition in accordance with the procedures set forth in this paragraph.</P> <P>(1) A state commission or other party seeking the Commission's agreement in redefining a service area served by a rural telephone company shall submit a petition to the Commission. The petition shall contain:</P> <P>(i) The definition proposed by the state commission; and</P> <P>(ii) The state commission's ruling or other official statement presenting the state commission's reasons for adopting its proposed definition, including an analysis that takes into account the <PRTPAGE P="98"/>recommendations of any Federal-State Joint Board convened to provide recommendations with respect to the definition of a service area served by a rural telephone company.</P> <P>(2) The Commission shall issue a Public Notice of any such petition within fourteen (14) days of its receipt.</P> <P>(3) The Commission may initiate a proceeding to consider the petition within ninety (90) days of the release date of the Public Notice.</P> <P>(i) If the Commission initiates a proceeding to consider the petition, the proposed definition shall not take effect until both the state commission and the Commission agree upon the definition of a rural service area, in accordance with paragraph (b) of this section and section 214(e)(5) of the Act.</P> <P>(ii) If the Commission does not act on the petition within ninety (90) days of the release date of the Public Notice, the definition proposed by the state commission will be deemed approved by the Commission and shall take effect in accordance with state procedures.</P> <P>(d) The Commission may, on its own motion, initiate a proceeding to consider a definition of a service area served by a rural telephone company that is different from that company's study area. If it proposes such different definition, the Commission shall seek the agreement of the state commission according to this paragraph.</P> <P>(1) The Commission shall submit a petition to the state commission according to that state commission's procedures. The petition submitted to the relevant state commission shall contain:</P> <P>(i) The definition proposed by the Commission; and</P> <P>(ii) The Commission's decision presenting its reasons for adopting the proposed definition, including an analysis that takes into account the recommendations of any Federal-State Joint Board convened to provide recommendations with respect to the definition of a service area served by a rural telephone company.</P> <P>(2) The Commission's proposed definition shall not take effect until both the state commission and the Commission agree upon the definition of a rural service area, in accordance with paragraph (b) of this section and section 214(e)(5) of the Act.</P> <P>(e) The Commission delegates its authority under paragraphs (c) and (d) of this section to the Chief, Common Carrier Bureau.</P> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart D—Universal Service Support for High Cost Areas</HD> <SECTION> <SECTNO>§ 54.301</SECTNO> <SUBJECT>Local switching support.</SUBJECT> <P>(a) <E T="03">Calculation of local switching support.</E> (1) Beginning January 1, 1998, an incumbent local exchange carrier that has been designated an eligible telecommunications carrier and that serves a study area with 50,000 or fewer access lines shall receive support for local switching costs using the following formula: the carrier's projected annual unseparated local switching revenue requirement, calculated pursuant to paragraph (d) of this section, shall be multiplied by the local switching support factor. For purposes of this section, local switching costs shall be defined as Category 3 local switching costs under part 36 of this chapter.</P> <P>(2) <E T="03">Local switching support factor.</E> (i) The local switching support factor shall be defined as the difference between the 1996 weighted interstate DEM factor, calculated pursuant to § 36.125(f) of this chapter, and the 1996 unweighted interstate DEM factor.</P> <P>(ii) If the number of a study area's access lines increases such that, under § 36.125(f) of this chapter, the weighted interstate DEM factor for 1997 or any successive year would be reduced, that lower weighted interstate DEM factor shall be applied to the carrier's 1996 unweighted interstate DEM factor to derive a new local switching support factor.</P> <P>(3) Beginning January 1, 1998, the sum of the unweighted interstate DEM factor, as defined in § 36.125(a)(5) of this chapter, and the local switching support factor shall not exceed 0.85. If the sum of those two factors would exceed 0.85, the local switching support factor shall be reduced to a level that would reduce the sum of the factors to 0.85.</P> <P>(b) <E T="03">Submission of data to the Administrator.</E> Each incumbent local exchange carrier that has been designated an eligible telecommunications carrier and that serves a study area with 50,000 or <PRTPAGE P="99"/>fewer access lines shall, for each study area, provide the Administrator with the projected total unseparated dollar amount assigned to each account listed below for the calendar year following each filing. This information must be provided to the Administrator no later than October 1 of each year. The Administrator shall use this information to calculate the projected annual unseparated local switching revenue requirement pursuant to paragraph (d) of this section.</P> <GPOTABLE CDEF="s100,xs125" COLS="2" OPTS="L0,7/8,g1,t1,i1"> <BOXHD> <CHED H="1"/> <CHED H="1"/> </BOXHD> <ROW EXPSTB="01"> <ENT I="21"> <E T="02">I</E> </ENT> </ROW> <ROW EXPSTB="00"> <ENT I="01">Telecommunications Plant in Service (TPIS)</ENT> <ENT>Account 2001</ENT> </ROW> <ROW> <ENT I="01">Telecommunications Plant—Other</ENT> <ENT>Accounts 2002, 2003, 2005</ENT> </ROW> <ROW> <ENT I="01">General Support Assets</ENT> <ENT>Account 2110</ENT> </ROW> <ROW> <ENT I="01">Central Office Assets</ENT> <ENT>Accounts 2210, 2220, 2230</ENT> </ROW> <ROW> <ENT I="01">Central Office—switching, Category 3 (local switching)</ENT> <ENT>Account 2210, Category 3</ENT> </ROW> <ROW> <ENT I="01">Information Origination/Termination Assets</ENT> <ENT>Account 2310</ENT> </ROW> <ROW> <ENT I="01">Cable and Wire Facilities Assets</ENT> <ENT>Account 2410</ENT> </ROW> <ROW> <ENT I="01">Amortizable Tangible Assets</ENT> <ENT>Account 2680</ENT> </ROW> <ROW> <ENT I="01">Intangibles</ENT> <ENT>Account 2690 </ENT> </ROW> <ROW EXPSTB="01"> <ENT I="21"> <E T="02">II</E> </ENT> </ROW> <ROW EXPSTB="00"> <ENT I="01">Rural Telephone Bank (RTB) Stock</ENT> <ENT>Included in Account 1402</ENT> </ROW> <ROW> <ENT I="01">Materials and Supplies</ENT> <ENT>Account 1220.1</ENT> </ROW> <ROW> <ENT I="01">Cash Working Capital</ENT> <ENT>Defined in 47 CFR 65.820(d) </ENT> </ROW> <ROW EXPSTB="01"> <ENT I="21"> <E T="02">III</E> </ENT> </ROW> <ROW EXPSTB="00"> <ENT I="01">Accumulated Depreciation</ENT> <ENT>Account 3100</ENT> </ROW> <ROW> <ENT I="01">Accumulated Amortization</ENT> <ENT>Accounts 3400, 3500, 3600</ENT> </ROW> <ROW> <ENT I="01">Net Deferred Operating Income Taxes</ENT> <ENT>Accounts 4100, 4340</ENT> </ROW> <ROW> <ENT I="01">Network Support Expenses</ENT> <ENT>Account 6110</ENT> </ROW> <ROW> <ENT I="01">General Support Expenses</ENT> <ENT>Account 6120</ENT> </ROW> <ROW> <ENT I="01">Central Office Switching, Operator Systems, and Central Office Transmission Expenses</ENT> <ENT>Accounts 6210, 6220, 6230</ENT> </ROW> <ROW> <ENT I="01">Information Origination/Termination Expenses</ENT> <ENT>Account 6310</ENT> </ROW> <ROW> <ENT I="01">Cable and Wire Facilities Expenses</ENT> <ENT>Account 6410</ENT> </ROW> <ROW> <ENT I="01">Other Property, Plant and Equipment Expenses</ENT> <ENT>Account 6510</ENT> </ROW> <ROW> <ENT I="01">Network Operations Expenses</ENT> <ENT>Account 6530</ENT> </ROW> <ROW> <ENT I="01">Access Expense</ENT> <ENT>Account 6540</ENT> </ROW> <ROW> <ENT I="01">Depreciation and Amortization Expense</ENT> <ENT>Account 6560</ENT> </ROW> <ROW> <ENT I="01">Marketing Expense</ENT> <ENT>Account 6610</ENT> </ROW> <ROW> <ENT I="01">Services Expense</ENT> <ENT>Account 6620</ENT> </ROW> <ROW> <ENT I="01">Corporate Operations Expense</ENT> <ENT>Accounts 6710, 6720</ENT> </ROW> <ROW> <ENT I="01">Operating Taxes</ENT> <ENT>Accounts 7230, 7240</ENT> </ROW> <ROW> <ENT I="01">Federal Investment Tax Credits</ENT> <ENT>Accounts 7210</ENT> </ROW> <ROW> <ENT I="01">Provision for Deferred Operating Income Taxes—Net</ENT> <ENT>Account 7250</ENT> </ROW> <ROW> <ENT I="01">Allowance for Funds Used During Construction</ENT> <ENT>Account 7340</ENT> </ROW> <ROW> <ENT I="01">Charitable Contributions</ENT> <ENT>Included in Account 7370</ENT> </ROW> <ROW> <ENT I="01">Interest and Related Items</ENT> <ENT>Account 7500 </ENT> </ROW> <ROW EXPSTB="01"> <ENT I="21"> <E T="02">IV</E> </ENT> </ROW> <ROW EXPSTB="00"> <ENT I="01">Other Non-Current Assets</ENT> <ENT>Account 1410</ENT> </ROW> <ROW> <ENT I="01">Deferred Maintenance and Retirements</ENT> <ENT>Account 1438</ENT> </ROW> <ROW> <ENT I="01">Deferred Charges</ENT> <ENT>Account 1439</ENT> </ROW> <ROW> <ENT I="01">Other Jurisdictional Assets and Liabilities</ENT> <ENT>Accounts 1500, 4370</ENT> </ROW> <ROW> <ENT I="01">Customer Deposits</ENT> <ENT>Account 4040</ENT> </ROW> <ROW> <ENT I="01">Other Long-Term Liabilities</ENT> <ENT>Account 4310</ENT> </ROW> </GPOTABLE> <P>(c) <E T="03">Allocation of accounts to switching.</E> The Administrator shall allocate to local switching, the accounts reported pursuant to paragraph (b) of this section as prescribed in this paragraph.</P> <P>(1) General Support Assets (Account 2110); Amortizable Tangible Assets (Account 2680); Intangibles (Account 2690); and General Support Expenses (Account 6120) shall be allocated according to the following factor: </P> <FP SOURCE="FP-2">Account 2210 Category÷3 (Account 2210 + Account 2220 + Account 2230 + Account 2310 + Account 2410).</FP> <PRTPAGE P="100"/> <P>(2) Telecommunications Plant—Other (Accounts 2002, 2003, 2005); Rural Telephone Bank (RTB) Stock (included in Account 1402); Materials and Supplies (Account 1220.1); Cash Working Capital (§ 65.820(d) of this chapter); Accumulated Amortization (Accounts 3400, 3500, 3600); Net Deferred Operating Income Taxes (Accounts 4100, 4340); Network Support Expenses (Account 6110); Other Property, Plant and Equipment Expenses (Account 6510); Network Operations Expenses (Account 6530); Marketing Expense (Account 6610); Services Expense (Account 6620); Operating Taxes (Accounts 7230, 7240); Federal Investment Tax Credits (Accounts 7210); Provision for Deferred Operating Income Taxes—Net (Account 7250); Interest and Related Items (Account 7500); Allowance for Funds Used During Construction (Account 7340); Charitable Contributions (included in Account 7370); Other Non-current Assets (Account 1410); Other Jurisdictional Assets and Liabilities (Accounts 1500, 4370); Customer Deposits (Account 4040); Other Long-term Liabilities (Account 4310); and Deferred Maintenance and Retirements (Account 1438) shall be allocated according to the following factor: </P> <FP SOURCE="FP-2">Account 2210 Category 3÷Account 2001.</FP> <P>(3) Accumulated Depreciation for Central Office—switching (Account 3100 associated with Account 2210) and Depreciation and Amortization Expense for Central Office—switching (Account 6560 associated with Account 2210) shall be allocated according to the following factor: </P> <FP SOURCE="FP-2">Account 2210 Category 3÷Account 2210.</FP> <P>(4) Accumulated Depreciation for General Support Assets (Account 3100 associated with Account 2110) and Depreciation and Amortization Expense for General Support Assets (Account 6560 associated with Account 2110) shall be allocated according to the following factor: </P> <FP SOURCE="FP-2">Account 2210 Category 3 ÷ Account 2001.</FP> <P>(5) Corporate Operations Expenses (Accounts 6710, 6720) shall be allocated according to the following factor: </P> <FP SOURCE="FP-2"> <E T="61">[</E>[Account 2210 Category 3 ÷ (Account 2210 + Account 2220 + Account 2230)<E T="61">]</E>] × (Account 6210 + Account 6220 + Account 6230)<E T="61">]</E> + [(Account 6530 + Account 6610 + Account 6620) × (Account 2210 Category 3 ÷ Account 2001)] ÷ (Account 6210 + Account 6220 + Account 6230 + Account 6310 + Account 6410 + Account 6530 + Account 6610 + Account 6620).</FP> <P>(6) Central Office Switching, Operator Systems, and Central Office Transmission Expenses (Account 6210, Account 6220, Account 6230) shall be allocated according to the following factor: </P> <FP SOURCE="FP-2">Account 2210 Category 3 ÷ (Accounts 2210 + 2220 + 2230).</FP> <P>(d) <E T="03">Calculation of the projected annual unseparated local switching revenue requirement.</E> The Administrator shall calculate the projected annual unseparated local switching revenue requirement by summing the components listed in this paragraph.</P> <P>(1) Return on Investment attributable to COE Category 3 shall be obtained by multiplying the average projected unseparated local switching net investment by the authorized interstate rate of return. Projected unseparated local switching net investment shall be calculated as of each December 31 by deducting the accumulated reserves, deferrals and customer deposits attributable to the COE Category 3 investment from the gross investment attributable to COE Category 3. The average projected unseparated local switching net investment shall be calculated by summing the projected unseparated local switching net investment as of December 31 of the calendar year following the filing year and such investment as of December 31 of the filing year and dividing by 2.</P> <P>(2) Depreciation expense attributable to COE Category 3 investment, allocated pursuant to paragraph (c) of this section.</P> <P>(3) All expenses, excluding depreciation expense, collected in paragraph (b) of this section, allocated pursuant to paragraph (c) of this section.</P> <P>(4) Federal income tax attributable to COE Category 3 shall be calculated using the following formula; the accounts listed shall be allocated pursuant to paragraph (c) of this section: </P> <FP SOURCE="FP-2">[Return on Investment attributable to COE Category 3 − Account 7340 − <PRTPAGE P="101"/>Account 7500—Account 7210)] × [Federal Income Tax Rate ÷ (1 − Federal Income Tax Rate)].</FP> <P>(e) <E T="03">True-up adjustment</E>—(1) <E T="03">Submission of true-up data.</E> Each incumbent local exchange carrier that has been designated an eligible telecommunications carrier and that serves a study area with 50,000 or fewer access lines shall, for each study area, provide the Administrator with the historical total unseparated dollar amount assigned to each account listed in paragraph (b) of this section for each calendar year no later than 12 months after the end of such calendar year.</P> <P>(2) <E T="03">Calculation of true-up adjustment.</E> (i) The Administrator shall calculate the historical annual unseparated local switching revenue requirement for each carrier when historical data for each calendar year are submitted.</P> <P>(ii) The Administrator shall calculate each carrier's local switching support payment, calculated pursuant to 54.301(a), using its historical annual unseparated local switching revenue requirement.</P> <P>(iii) For each carrier receiving local switching support, the Administrator shall calculate the difference between the support payment calculated pursuant to paragraph (e)(2)(ii) of this section and its support payment calculated using its projected annual unseparated local switching revenue requirement.</P> <P>(iv) The Administrator shall adjust each carrier's local switching support payment by the difference calculated in paragraph (e)(2)(iii) of this section no later than 15 months after the end of the calendar year for which historical data are submitted.</P> <P>(f) <E T="03">Calculation of the local switching revenue requirement for average schedule companies.</E> (1) The local switching revenue requirement for average schedule companies, as defined in § 69.605(c) of this chapter, shall be calculated in accordance with a formula approved or modified by the Commission. The Administrator shall submit to the Commission and the Common Carrier Bureau for review and approval a formula that simulates the disbursements that would be received pursuant to this section by a company that is representative of average schedule companies. For each annual period, the Administrator shall submit the formula, any proposed revisions of such formula, or a certification that no revisions to the formula are warranted on or before December 31 of each year.</P> <P>(2) The Commission delegates its authority to review, modify, and approve the formula submitted by the Administrator pursuant to this paragraph to the Chief, Common Carrier Bureau.</P> <CITA>[63 FR 2126, Jan. 13, 1998; 63 FR 33585, June 19, 1998]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.303</SECTNO> <SUBJECT>Long term support.</SUBJECT> <P>(a) Beginning January 1, 1998, an eligible telecommunications carrier that participates in the association Common Line pool shall receive Long Term Support.</P> <P>(b) Long Term Support shall be calculated as prescribed in this paragraph.</P> <P>(1) To calculate the unadjusted base-level of Long Term Support for 1998, the Administrator shall calculate the difference between the projected Common Line revenue requirement of association Common Line tariff participants projected to be recovered in 1997 and the sum of end user common line charges and the 1997 projected revenue recovered by the association Carrier Common Line charge as calculated pursuant to § 69.105(b)(2) of this chapter.</P> <P>(2) To calculate Long Term Support for calendar year 1998, the Administrator shall adjust the base-level of Long Term Support calculated in paragraph (b)(1) of this section to reflect the annual percentage change in the actual nationwide average unseparated loop cost per working loop as filed by the Administrator in the previous calendar year, pursuant to § 36.622 of this chapter.</P> <P>(3) To calculate Long Term Support for calendar year 1999, the Administrator shall adjust the level of support calculated in paragraph (b)(2) of this section to reflect the annual percentage change in the actual nationwide average unseparated loop cost per working loop as filed by the Administrator in the previous calendar year, pursuant to § 36.622 of this chapter.</P> <P>(4) Beginning January 1, 2000, the Administrator shall calculate Long Term <PRTPAGE P="102"/>Support annually by adjusting the previous year's level of support to reflect the annual percentage change in the Department of Commerce's Gross Domestic Product-Consumer Price Index (GDP-CPI).</P> <CITA>[63 FR 2128, Jan. 13, 1998; 63 FR 33586, June 19, 1998]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.305</SECTNO> <SUBJECT>Sale or transfer of exchanges.</SUBJECT> <P>A carrier that acquires telephone exchanges from an unaffiliated carrier shall receive universal service support for the acquired exchanges at the same per-line support levels for which those exchanges were eligible prior to the transfer of the exchanges. A carrier that has entered into a binding commitment to buy exchanges prior to May 7, 1997 will receive support for the newly acquired lines based upon the average cost of all of its lines, both those newly acquired and those it had prior to execution of the sales agreement.</P> </SECTION> <SECTION> <SECTNO>§ 54.307</SECTNO> <SUBJECT>Support to a competitive eligible telecommunications carrier.</SUBJECT> <P>(a) <E T="03">Calculation of support.</E> A competitive eligible telecommunications carrier shall receive universal service support to the extent that the competitive eligible telecommunications carrier captures the subscriber lines of an incumbent local exchange carrier (LEC) or serves new subscriber lines in the incumbent LEC's service area.</P> <P>(1) A competitive eligible telecommunications carrier shall receive support for each line it serves in a particular wire center based on the support the incumbent LEC would receive for each such line.</P> <P>(2) A competitive eligible telecommunications carrier that uses switching purchased as unbundled network elements pursuant to § 51.307 of this chapter to provide the supported services shall receive the lesser of the unbundled network element price for switching or the per-line DEM support of the incumbent LEC, if any. A competitive eligible telecommunications carrier that uses loops purchased as unbundled network elements pursuant to § 51.307 of this chapter to provide the supported services shall receive the lesser of the unbundled network element price for the loop or the incumbent LEC's per-line payment from the high-cost loop support and LTS, if any. The incumbent LEC providing nondiscriminatory access to unbundled network elements to such competitive eligible telecommunications carrier shall receive the difference between the level of universal service support provided to the competitive eligible telecommunications carrier and the per-customer level of support that the incumbent LEC would have received.</P> <P>(3) A competitive eligible telecommunications carrier that provides the supported services using neither unbundled network elements purchased pursuant to § 51.307 of this chapter nor wholesale service purchased pursuant to section 251(c)(4) of the Act will receive the full amount of universal service support that the incumbent LEC would have received for that customer.</P> <P>(4) A competitive eligible telecommunications carrier that provides the supported services using neither unbundled network elements purchased pursuant to § 51.307 of this chapter nor wholesale service purchased pursuant to section 251(c)(4) of the Act will receive the full amount of universal service support previously provided to the incumbent local exchange carrier for that customer. The amount of universal service support provided to such incumbent local exchange carrier shall be reduced by an amount equal to the amount provided to such competitive eligible telecommunications carrier.</P> <P>(b) In order to receive support pursuant to this subpart, a competitive eligible telecommunications carrier must report to the Administrator the number of working loops it serves in a service area pursuant to the schedule set forth in paragraph (c) of this section. For a competitive eligible telecommunications carrier serving loops in the service area of a rural telephone company, as that term is defined in § 51.5 of this chapter, the carrier must report the number of working loops it serves in the service area. For a competitive eligible telecommunications carrier serving loops in the service area of a non-rural telephone company, the carrier must report the number of working loops it serves in the service area and the number of working loops it serves in each wire center in the <PRTPAGE P="103"/>service area. For universal service support purposes, working loops are defined as the number of working Exchange Line C&WF loops used jointly for exchange and message telecommunications service, including C&WF subscriber lines associated with pay telephones in C&WF Category 1, but excluding WATS closed end access and TWX service.</P> <P>(c) For a competitive eligible telecommunications carrier serving loops in the service area of a rural telephone company, as that term is defined in § 51.5 of this chapter, the carrier must submit no later than July 31st of each year the data required pursuant to paragraph (b) of this section as of December 30th of the previous calendar year, and the carrier may update on a quarterly basis the data required pursuant to paragraph (b) of this section according to the schedule. For a competitive eligible telecommunications carrier serving loops in the service area of a non-rural telephone company, the carrier must submit the data required pursuant to paragraph (b) of this section according to the schedule.</P> <P>(1) No later than July 31 of each year, submit data as of December 30th of the previous calendar year;</P> <P>(2) No later than September 30th of each year, submit data as of March 30th of the existing calendar year;</P> <P>(3) No later than December 30th of each year, submit data as of July 31st of the existing calendar year;</P> <P>(4) No later than March 30th of each year, submit data as of September 30th of the previous year.</P> <CITA>[62 FR 32948, June 17, 1997, as amended at 63 FR 2128, Jan. 13, 1998; 64 FR 67431, Dec. 1, 1999; 65 FR 26516, May 8, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.309</SECTNO> <SUBJECT>Calculation and distribution of forward-looking support for non-rural carriers.</SUBJECT> <P>(a) <E T="03">Calculation of total support available per state.</E> Beginning January 1, 2000, non-rural incumbent local exchange carriers, and eligible telecommunications carriers serving lines in the service areas of non-rural incumbent local exchange carriers, shall receive universal service support for the forward-looking economic costs of providing supported services in high-cost areas, provided that the State in which the lines served by the carrier are located has complied with the certification requirements in § 54.313. The total amount of forward-looking support available in each State shall be determined according to the following methodology:</P> <P>(1) For each State, the Commission's cost model shall determine the statewide average forward-looking economic cost (FLEC) per line of providing the supported services. The statewide average FLEC per line shall equal the total FLEC for non-rural carriers to provide the supported services in the State, divided by the number of switched lines used in the Commission's cost model. The total FLEC shall equal average FLEC multiplied by the number of switched lines used in the Commission's cost model.</P> <P>(2) The Commission's cost model shall determine the national average FLEC per line of providing the supported services. The national average FLEC per line shall equal the total FLEC for non-rural carriers to provide the supported services in all States, divided by the total number of switched lines in all States used in the Commission's cost model.</P> <P>(3) The national cost benchmark shall equal 135 percent of the national average FLEC per line.</P> <P>(4) Support calculated pursuant to this section shall be provided to non-rural carriers in each State where the statewide average FLEC per line exceeds the national cost benchmark. The total amount of support provided to non-rural carriers in each State where the statewide average FLEC per line exceeds the national cost benchmark shall equal 76 percent of the amount of the statewide average FLEC per line that exceeds the national cost benchmark, multiplied by the number of lines reported pursuant to § 36.611, § 36.612, and § 54.307 of this chapter.</P> <P>(5) In the event that a State's statewide average FLEC per line does not exceed the national cost benchmark, non-rural carriers in such State shall be eligible for support pursuant to § 54.311. In the event that a State's statewide average FLEC per line exceeds the national cost benchmark, but the amount of support otherwise provided to a non-rural carrier in that <PRTPAGE P="104"/>State pursuant to this section is less than the amount that would be provided pursuant to § 54.311, the carrier shall be eligible for support pursuant to § 54.311.</P> <P>(b) <E T="03">Distribution of total support available per state.</E> The total amount of support available per State calculated pursuant to paragraph (a) of this section shall be distributed to non-rural incumbent local exchange carriers, and eligible telecommunications carriers serving lines in the service areas of non-rural incumbent local exchange carriers, in the following manner:</P> <P>(1) The Commission's cost model shall determine the percentage of the total amount of support available in the State for each wire center by calculating the ratio of the wire center's FLEC above the national cost benchmark to the total FLEC above the national cost benchmark of all wire centers within the State. A wire center's FLEC above the national cost benchmark shall be equal to the wire center's average FLEC per line above the national cost benchmark, multiplied by the number of switched lines in the wire center used in the Commission's cost model;</P> <P>(2) The total amount of support distributed to each wire center shall be equal to the percentage calculated for the wire center pursuant to paragraph (b)(1) of this section multiplied by the total amount of support available in the state;</P> <P>(3) The total amount of support for each wire center pursuant to paragraph (b)(2) of this section shall be divided by the number of lines in the wire center reported pursuant to § 36.611, § 36.612, and § 54.307 of this chapter to determine the per-line amount of forward-looking support for that wire center;</P> <P>(4) The per-line amount of support for each wire center pursuant to paragraph (b)(3) of this section shall be multiplied by the number of lines served by a non-rural incumbent local exchange carrier in that wire center, or by an eligible telecommunications carrier in that wire center, as reported pursuant to § 36.611, § 36.612, and § 54.307 of this chapter, to determine the amount of forward-looking support to be provided to that carrier.</P> <P>(5) The total amount of support calculated for each wire center pursuant to paragraph (b)(4) of this section shall be divided by the number of lines in the wire center to determine the per-line amount of forward-looking support for that wire center;</P> <P>(6) The per-line amount of support for a wire center calculated pursuant to paragraph (b)(5) of the section shall be multiplied by the number of lines served by a non-rural incumbent local exchange carrier in that wire center, or by an eligible telecommunications carrier in that wire center, to determine the amount of forward-looking support to be provided to that carrier.</P> <P>(c) <E T="03">Petition for waiver.</E> Pursuant to section 1.3 of this chapter, any State may file a petition for waiver of paragraph (b) of this section, asking the Commission to distribute support calculated pursuant to paragraph (a) of this section to a geographic area different than the wire center. Such petition must contain a description of the particular geographic level to which the State desires support to be distributed, and an explanation of how waiver of paragraph (b) of this section will further the preservation and advancement of universal service within the State.</P> <CITA>[64 FR 67431, Dec. 1, 1999, as amended at 65 FR 26516, May 8, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.311</SECTNO> <SUBJECT>Interim hold-harmless support for non-rural carriers.</SUBJECT> <P>(a) <E T="03">Interim hold-harmless support.</E> The total amount of interim hold-harmless support provided to a non-rural incumbent local exchange carrier shall equal the amount of support calculated for that carrier pursuant to part 36 of this chapter. The total amount of interim hold-harmless support provided to a non-rural incumbent local exchange carrier shall also include Long Term Support provided pursuant to § 54.303, to the extent that the carrier would otherwise be eligible for such support. Beginning on January 1, 2000, in the event that a State's statewide average FLEC per line, calculated pursuant to § 54.309(a), does not exceed the national cost benchmark, non-rural incumbent local exchange carriers in such State shall receive interim hold-harmless support calculated pursuant to part 36, and, if applicable, § 54.303. In the event <PRTPAGE P="105"/>that a State's statewide average FLEC per line, calculated pursuant to § 54.309(a), exceeds the national cost benchmark, but the amount of support that would be provided to a non-rural incumbent local exchange carrier in such State pursuant to § 54.309(b) is less than the amount that would be provided pursuant to part 36 and, if applicable, § 54.303, the carrier shall be eligible for support pursuant to part 36 and, if applicable, § 54.303. To the extent that an eligible telecommunications carrier serves lines in the service area of a non-rural incumbent local exchange carrier receiving interim hold-harmless support, the eligible telecommunications carrier shall also be entitled to interim hold-harmless support in an amount per line equal to the amount per line provided to the non-rural incumbent local exchange carrier pursuant to paragraph (b) of this section.</P> <P>(b) <E T="03">Distribution of Interim Hold-Harmless Support Amounts.</E> Until the third quarter of 2000, interim hold-harmless support shall be distributed pursuant to part 36 and, if applicable, § 54.303 of this subpart. Beginning in the third quarter of 2000, the total amount of interim hold-harmless support provided to each non-rural incumbent local exchange carrier within a particular State pursuant to paragraph (a) shall be distributed first to the carrier's wire center with the highest wire center average FLEC per line until that wire center's average FLEC per line, net of support, equals the average FLEC per line in the second most high-cost wire center. Support shall then be distributed to the carrier's wire center with the highest and second highest wire center average FLEC per line until those wire center's average FLECs per line, net of support, equal the average FLEC per line in the third most high-cost wire center. This process shall continue in a cascading fashion until all of the interim hold-harmless support provided to the carrier has been exhausted.</P> <P>(c) <E T="03">Petition for waiver.</E> Pursuant to section 1.3 of this chapter, a State may file a petition for waiver of paragraph (b) of this section, asking the Commission to distribute interim hold-harmless support to a geographic area different than the wire center. Such petition must contain a description of the particular geographic level to which the State desires interim hold-harmless support to be distributed, and an explanation of how waiver of paragraph (b) of this section will further the preservation and advancement of universal service within the State.</P> <CITA>[64 FR 67432, Dec. 1, 1999, as amended at 64 FR 73428, Dec. 30, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.313</SECTNO> <SUBJECT>State certification.</SUBJECT> <P>(a) <E T="03">Certification.</E> States that desire non-rural incumbent local exchange carriers and/or eligible telecommunications carriers serving lines in the service area of a non-rural incumbent local exchange carrier within their jurisdiction to receive support pursuant to §§ 54.309 and/or 54.311 must file an annual certification with the Administrator and the Commission stating that all federal high-cost support provided to such carriers within that State will be used only for the provision, maintenance, and upgrading of facilities and services for which the support is intended. Support provided pursuant to §§ 54.309 and/or 54.311 shall only be provided to the extent that the State has filed the requisite certification pursuant to this section.</P> <P>(b) <E T="03">Certification format.</E> A certification pursuant to this section may be filed in the form of a letter from the appropriate regulatory authority for the State, and must be filed with both the Office of the Secretary of the Commission clearly referencing CC Docket No. 96-45, and with the Administrator of the high-cost universal service support mechanism, on or before the deadlines set forth in paragraph (c) of this section. The annual certification must identify which carriers in the State are eligible to receive federal support during the applicable 12-month period, and must certify that those carriers will only use the support for the provision, maintenance, and upgrading of facilities and services for which the support is intended. A State may file a supplemental certification for carriers not subject to the State's annual certification. All certifications filed by a State pursuant to this section shall become part of the public record maintained by the Commission.<PRTPAGE P="106"/> </P> <P>(c) <E T="03">Filing Deadlines.</E> In order for a non-rural incumbent local exchange carrier in a particular State, and/or an eligible telecommunications carrier serving lines in the service area of a non-rural incumbent local exchange carrier, to receive federal high-cost support, the State must file an annual certification, as described in paragraph (b), with both the Administrator and the Commission. Support shall be provided in accordance with the following schedule:</P> <P>(1) <E T="03">First Program Year (January 1, 2000-December 31, 2000).</E> During the first program year (January 1, 2000-December 31, 2000), a carrier in a particular State shall receive support pursuant to § 54.311 of this subpart. If a State files the certification described in this section during the first program year, carriers eligible for support pursuant to § 54.309 shall receive such support pursuant to the following schedule:</P> <P>(i) <E T="03">Certifications filed on or before April 1, 2000.</E> Carriers subject to certifications that apply to the first and second quarters of 2000, and are filed on or before April 1, 2000, shall receive support pursuant to § 54.309 of this subpart for the first and third quarters of 2000 in the third quarter of 2000, and support for the second and fourth quarters of 2000 in the fourth quarter of 2000. Such support shall be net of any support provided pursuant to § 54.311 of this subpart for the first or second quarters of 2000.</P> <P>(ii) <E T="03">Certifications filed on or before July 1, 2000.</E> Carriers subject to certifications filed on or before July 1, 2000, shall receive support pursuant to § 54.309 of this subpart for the fourth quarter of 2000 in the fourth quarter of 2000.</P> <P>(iii) <E T="03">Certifications filed after July 1, 2000.</E> Carriers subject to certifications filed after July 1, 2000, shall not receive support pursuant to § 54.309 of this section in 2000.</P> <CITA>[64 FR 67432, Dec. 1, 1999, as amended at 64 FR 73428, Dec. 30, 1999]</CITA> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart E—Universal Service Support for Low-Income Consumers</HD> <SECTION> <SECTNO>§ 54.400</SECTNO> <SUBJECT>Terms and definitions.</SUBJECT> <P>As used in this subpart, the following terms shall be defined as follows:</P> <P>(a) <E T="03">Qualifying low-income consumer. </E>A “qualifying low-income consumer” is a consumer who meets the qualifications for Lifeline, as specified in § 54.409.</P> <P>(b) <E T="03">Toll blocking.</E> “Toll blocking” is a service provided by carriers that lets consumers elect not to allow the completion of outgoing toll calls from their telecommunications channel.</P> <P>(c) <E T="03">Toll control.</E> “Toll control” is a service provided by carriers that allows consumers to specify a certain amount of toll usage that may be incurred on their telecommunications channel per month or per billing cycle.</P> <P>(d) <E T="03">Toll limitation.</E> “Toll limitation” denotes either toll blocking or toll control for eligible telecommunications carriers that are incapable of providing both services. For eligible telecommunications carriers that are capable of providing both services, “toll limitation” denotes both toll blocking and toll control.</P> <P>(e) <E T="03">Eligible resident of Tribal lands. </E>An “eligible resident of Tribal lands” is a “qualifying low-income consumer,” as defined in paragraph (a) of this section, living on or near a reservation, as defined in 25 CFR 20.1(r) and 20.1(v).</P> <CITA>[62 FR 32952, June 17, 1997, as amended at 63 FR 2128, Jan. 13, 1998; 65 FR 47905, Aug. 4, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.401</SECTNO> <SUBJECT>Lifeline defined.</SUBJECT> <P>(a) As used in this subpart, <E T="03">Lifeline</E> means a retail local service offering:</P> <P>(1) That is available only to qualifying low-income consumers;</P> <P>(2) For which qualifying low-income consumers pay reduced charges as a result of application of the Lifeline support amount described in § 54.403; and</P> <P>(3) That includes the services or functionalities enumerated in § 54.101 (a)(1) through (a)(9). The carriers shall offer toll limitation to all qualifying <PRTPAGE P="107"/>low-income consumers at the time such consumers subscribe to Lifeline service. If the consumer elects to receive toll limitation, that service shall become part of that consumer's Lifeline service.</P> <P>(b) [Reserved</P> <P>(c) Eligible telecommunications carriers may not collect a service deposit in order to initiate Lifeline service, if the qualifying low-income consumer voluntarily elects toll blocking from the carrier, where available. If toll blocking is unavailable, the carrier may charge a service deposit.</P> <P>(d) The state commission shall file or require the eligible telecommunications carrier to file information with the Administrator demonstrating that the carrier's Lifeline plan meets the criteria set forth in this subpart and stating the number of qualifying low-income consumers and the amount of state assistance. Eligible telecommunications carriers not subject to state commission jurisdiction also shall make such a filing with the Administrator. Lifeline assistance shall be made available to qualifying low-income consumers as soon as the Administrator certifies that the carrier's Lifeline plan satisfies the criteria set out in this subpart.</P> <CITA>[62 FR 32948, June 17, 1997, as amended at 63 FR 2128, Jan. 13, 1998; 64 FR 60358, Nov. 5, 1999; 65 FR 47905, Aug. 4, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.403</SECTNO> <SUBJECT>Lifeline support amount.</SUBJECT> <P>(a) The Federal Lifeline support amount for all eligible telecommunications carriers shall equal:</P> <P>(1) <E T="03">Tier One. </E>The tariffed rate in effect for the primary residential End User Common Line charge of the incumbent local exchange carrier serving the area in which the qualifying low-income consumer receives service, as determined in accordance with § 69.104 or §§ 69.152(d)(1) and 69.152(q) of this chapter, whichever is applicable;</P> <P>(2) <E T="03">Tier Two. </E>Additional federal Lifeline support in the amount of $1.75 per month will be made available to the eligible telecommunications carrier providing Lifeline service to the qualifying low-income consumer, if that carrier certifies to the Administrator that it will pass through the full amount of Tier-Two support to its qualifying, low-income consumers and that it has received any non-federal regulatory approvals necessary to implement the required rate reduction.</P> <P>(3) <E T="03">Tier Three. </E>Additional federal Lifeline support in an amount equal to one-half the amount of any state-mandated Lifeline support or Lifeline support otherwise provided by the carrier, up to a maximum of $1.75 per month in federal support, will be made available to the carrier providing Lifeline service to a qualifying low-income consumer if the carrier certifies to the Administrator that it will pass through the full amount of Tier-Three support to its qualifying low-income consumers and that it has received any non-federal regulatory approvals necessary to implement the required rate reduction.</P> <P>(4) <E T="03">Tier Four. </E>Additional federal Lifeline support of up to $25 per month will be made available to a eligible telecommunications carrier providing Lifeline service to an eligible resident of Tribal lands, as defined in § 54.400(e), to the extent that:</P> <P>(i) This amount does not bring the basic local residential rate (including any mileage, zonal, or other non-discretionary charges associated with basic residential service) below $1 per month per qualifying low-income subscribers; and</P> <P>(ii) The eligible telecommunications carrier certifies to the Administrator that it will pass through the full Tier-Four amount to qualifying eligible residents of Tribal lands and that it has received any non-federal regulatory approvals necessary to implement the required rate reduction.</P> <P>(b) For a qualifying low-income consumer who is not an eligible resident of Tribal lands, as defined in § 54.400(e), the federal Lifeline support amount shall not exceed $3.50 plus the tariffed rate in effect for the primary residential End User Common Line charge of the incumbent local exchange carrier serving the area in which the qualifying low-income consumer receives service, as determined in accordance with § 69.104 or § 69.152(d) and (q) of this chapter, whichever is applicable. For an eligible resident of Tribal lands, the federal Lifeline support amount shall not exceed $28.50 plus that same End User Common Line charge. Eligible <PRTPAGE P="108"/>telecommunications carriers that charge federal End User Common Line charges or equivalent federal charges shall apply Tier-One federal Lifeline support to waive the federal End-User Common Line charges for Lifeline consumers. Such carriers shall apply any additional federal support amount to a qualifying low-income consumer's intrastate rate, if the carrier has received the non-federal regulatory approvals necessary to implement the required rate reduction. Other eligible telecommunications carriers shall apply the Tier-One federal Lifeline support amount, plus any additional support amount, to reduce their lowest tariffed (or otherwise generally available) residential rate for the services enumerated in § 54.101(a)(1) through (a)(9), and charge Lifeline consumers the resulting amount.</P> <CITA>[62 FR 32948, June 17, 1997, as amended at 63 FR 2128, Jan. 13, 1998; 65 FR 38689, June 21, 2000; 65 FR 47905, Aug. 4, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.405</SECTNO> <SUBJECT>Carrier obligation to offer Lifeline.</SUBJECT> <P>All eligible telecommunications carriers shall:</P> <P>(a) Make available Lifeline service, as defined in § 54.401, to qualifying low-income consumers, and</P> <P>(b) Publicize the availability of Lifeline service in a manner reasonably designed to reach those likely to qualify for the service.</P> <CITA>[65 FR 47905, Aug. 4, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.407</SECTNO> <SUBJECT>Reimbursement for offering Lifeline.</SUBJECT> <P>(a) Universal service support for providing Lifeline shall be provided directly to the eligible telecommunications carrier, based on the number of qualifying low-income consumers it serves, under administrative procedures determined by the Administrator.</P> <P>(b) The eligible telecommunications carrier may receive universal service support reimbursement for each qualifying low-income consumer served. For each consumer receiving Lifeline service, the reimbursement amount shall equal the federal support amount, including the support amount described in § 54.403(c). The eligible telecommunications carrier's universal service support reimbursement shall not exceed the carrier's standard, non-Lifeline rate.</P> <P>(c) In order to receive universal service support reimbursement, the eligible telecommunications carrier must keep accurate records of the revenues it forgoes in providing Lifeline in conformity with § 54.401. Such records shall be kept in the form directed by the Administrator and provided to the Administrator at intervals as directed by the Administrator or as provided in this Subpart.</P> </SECTION> <SECTION> <SECTNO>§ 54.409</SECTNO> <SUBJECT>Consumer qualification for Lifeline.</SUBJECT> <P>(a) To qualify to receive Lifeline service in a state that mandates state Lifeline support, a consumer must meet the eligibility criteria established by the state commission for such support. The state commission shall establish narrowly targeted qualification criteria that are based solely on income or factors directly related to income. A state containing geographic areas included in the definition of “reservation” and “near reservation,” as defined in 25 CFR 20.1(r) and 20.1(v), must ensure that its qualification criteria are reasonably designed to apply to low-income individuals living in such areas.</P> <P>(b) To qualify to receive Lifeline service in a state that does not mandate state Lifeline support, a consumer must participate in one of the following federal assistance programs: Medicaid; food stamps; Supplemental Security Income; federal public housing assistance; and Low-Income Home Energy Assistance Program. In a state that does not mandate state Lifeline support, each eligible telecommunications carrier providing Lifeline service to a qualifying, low-income consumer must obtain that consumer's signature on a document certifying under penalty of perjury that the consumer receives benefits from one of the programs listed in this paragraph and identifying the program or programs from which that consumer receives benefits. On the same document, a qualifying low-income consumer also must agree to notify the carrier if that consumer ceases to participate in the program or programs.<PRTPAGE P="109"/> </P> <P>(c) Notwithstanding paragraphs (a) and (b) of this section, an individual living on a reservation or near a reservation, as defined in 25 CFR 20.1(r) and 20.1(v), shall qualify to receive Tiers One, Two, and Four Lifeline service if the individual participates in one of the following federal assistance programs: Bureau of Indian Affairs general assistance; Tribally administered Temporary Assistance for Needy Families; Head Start (only those meeting its income qualifying standard); or National School Lunch Program's free lunch program. Such qualifying low-income consumer shall also qualify for Tier-Three Lifeline support, if the carrier offering the Lifeline service is not subject to the regulation of the state and provides carrier-matching funds, as described in § 54.403(a)(3). To receive Lifeline support under this paragraph for the eligible resident of Tribal lands, the eligible telecommunications carrier offering the Lifeline service to such consumer must obtain the consumer's signature on a document certifying under penalty of perjury that the consumer receives benefits from at least one of the programs mentioned in this paragraph or paragraph (b) of this section, and lives on or near a reservation, as defined in 25 CFR 20.1(r)and 20.1(v). In addition to identifying in that document the program or programs from which that consumer receives benefits, an eligible resident of Tribal lands also must agree to notify the carrier if that consumer ceases to participate in the program or programs.</P> <CITA>[65 FR 47905, Aug. 4, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.411</SECTNO> <SUBJECT>Link Up program defined.</SUBJECT> <P>(a) For purposes of this subpart, the term “Link Up” shall describe the following assistance program for qualifying low-income consumers, which an eligible telecommunications carrier shall offer as part of its obligation set forth in §§ 54.101(a)(9) and 54.101(b):</P> <P>(1) A reduction in the carrier's customary charge for commencing telecommunications service for a single telecommunications connection at a consumer's principal place of residence. The reduction shall be half of the customary charge or $30.00, whichever is less; and</P> <P>(2) A deferred schedule for payment of the charges assessed for commencing service, for which the consumer does not pay interest. The interest charges not assessed to the consumer shall be for connection charges of up to $200.00 that are deferred for a period not to exceed one year. Charges assessed for commencing service include any charges that the carrier customarily assesses to connect subscribers to the network. These charges do not include any permissible security deposit requirements.</P> <P>(3) For an eligible resident of Tribal lands, a reduction of up to $70, in addition to the reduction in paragraph (a)(1) of this section, to cover 100 percent of the charges between $60 and $130 assessed for commencing telecommunications service at the principal place of residence of the eligible resident of Tribal lands. For purposes of this paragraph, charges assessed for commencing telecommunications services shall include any charges that the carrier customarily assesses to connect subscribers to the network, including facilities-based charges associated with the extension of lines or construction of facilities needed to initiate service. The reduction shall not apply to charges assessed for facilities or equipment that fall on the customer side of demarcation point, as defined in § 68.3 of this chapter.</P> <P>(b) A qualifying low-income consumer may choose one or both of the programs set forth in paragraphs (a)(1) and (a)(2) of this section. An eligible resident of Tribal lands may participate in paragraphs (a)(1), (a)(2), and (a)(3) of this section.</P> <P>(c) A carrier's Link Up program shall allow a consumer to receive the benefit of the Link Up program for a second or subsequent time only for a principal place of residence with an address different from the residence address at which the Link Up assistance was provided previously.</P> <P>(d) An eligible telecommunications carrier shall publicize the availability of Link Up support in a manner reasonably designed to reach those likely to qualify for the support.</P> <CITA>[62 FR 32948, June 17, 1997, as amended at 65 FR 47906, Aug. 4, 2000]</CITA> </SECTION> <SECTION> <PRTPAGE P="110"/> <SECTNO>§ 54.413</SECTNO> <SUBJECT>Reimbursement for revenue forgone in offering a Link Up program.</SUBJECT> <P>(a) Eligible telecommunications carriers may receive universal service support reimbursement for the revenue they forgo in reducing their customary charge for commencing telecommunications service and for providing a deferred schedule for payment of the charges assessed for commencing service for which the consumer does not pay interest, in conformity with § 54.411.</P> <P>(b) In order to receive universal service support reimbursement for providing Link Up, eligible telecommunications carriers must keep accurate records of the revenues they forgo in reducing their customary charge for commencing telecommunications service and for providing a deferred schedule for payment of the charges assessed for commencing service for which the consumer does not pay interest, in conformity with § 54.411. Such records shall be kept in the form directed by the Administrator and provided to the Administrator at intervals as directed by the Administrator or as provided in this subpart. The forgone revenues for which the eligible telecommunications carrier may receive reimbursement shall include only the difference between the carrier's customary connection or interest charges and the charges actually assessed to the participating low-income consumer.</P> </SECTION> <SECTION> <SECTNO>§ 54.415</SECTNO> <SUBJECT>Consumer qualification for Link Up.</SUBJECT> <P>(a) In a state that mandates state Lifeline support, the consumer qualification criteria for Link Up shall be the same as the criteria that the state established for Lifeline qualification in accord with § 54.409(a).</P> <P>(b) In a state that does not mandate state Lifeline support, the consumer qualification criteria for Link Up shall be the criteria set forth in § 54.409(b).</P> <P>(c) Notwithstanding paragraphs (a) and (b) of this section, an eligible resident of Tribal lands, as defined in § 54.400(e), shall qualify to receive Link Up support.</P> <CITA>[65 FR 47906, Aug. 4, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.500</SECTNO> <SUBJECT>Terms and definitions.</SUBJECT> <P>(a) <E T="03">Billed entity.</E> A “billed entity” is the entity that remits payment to service providers for services rendered to eligible schools and libraries.</P> <P>(b) <E T="03">Elementary school.</E> An “elementary school” is a non-profit institutional day or residential school that provides elementary education, as determined under state law.</P> <P>(c) <E T="03">Library.</E> A “library” includes:</P> <P>(1) A public library;</P> <P>(2) A public elementary school or secondary school library;</P> <P>(3) An academic library;</P> <P>(4) A research library, which for the purpose of this section means a library that:</P> <P>(i) Makes publicly available library services and materials suitable for scholarly research and not otherwise available to the public; and</P> <P>(ii) Is not an integral part of an institution of higher education; and</P> <P>(5) A private library, but only if the state in which such private library is located determines that the library should be considered a library for the purposes of this definition.</P> <P>(d) <E T="03">Library consortium.</E> A “library consortium” is any local, statewide, regional, or interstate cooperative association of libraries that provides for the systematic and effective coordination of the resources of schools, public, academic, and special libraries and information centers, for improving services to the clientele of such libraries. For the purposes of these rules, references to library will also refer to library consortium.</P> <P>(e) <E T="03">Lowest corresponding price.</E> “Lowest corresponding price” is the lowest price that a service provider charges to non-residential customers who are similarly situated to a particular school, library, or library consortium for similar services.</P> <P>(f) <E T="03">Master contract.</E> A “master contract” is a contract negotiated with a service provider by a third party, the terms and conditions of which are then made available to an eligible school, library, rural health care provider, or consortium that purchases directly from the service provider.</P> <P>(g) <E T="03">Minor contract modification.</E> A “minor contract modification” is a change to a universal service contract <PRTPAGE P="111"/>that is within the scope of the original contract and has no effect or merely a negligible effect on price, quantity, quality, or delivery under the original contract.</P> <P>(h) <E T="03">National school lunch program.</E> The “national school lunch program” is a program administered by the U.S. Department of Agriculture and state agencies that provides free or reduced price lunches to economically disadvantaged children. A child whose family income is between 130 percent and 185 percent of applicable family size income levels contained in the nonfarm poverty guidelines prescribed by the Office of Management and Budget is eligible for a reduced price lunch. A child whose family income is 130 percent or less of applicable family size income levels contained in the nonfarm income poverty guidelines prescribed by the Office of Management and Budget is eligible for a free lunch.</P> <P>(i) <E T="03">Pre-discount price.</E> The “pre-discount price” means, in this subpart, the price the service provider agrees to accept as total payment for its telecommunications or information services. This amount is the sum of the amount the service provider expects to receive from the eligible school or library and the amount it expects to receive as reimbursement from the universal service support mechanisms for the discounts provided under this subpart.</P> <P>(j) <E T="03">Secondary school.</E> A “secondary school” is a non-profit institutional day or residential school that provides secondary education, as determined under state law. A secondary school does not offer education beyond grade 12.</P> <P>(k) <E T="03">State telecommunications network.</E> A “state telecommunications network” is a state government entity that procures, among other things, telecommunications offerings from multiple service providers and bundles such offerings into packages available to schools, libraries, or rural health care providers that are eligible for universal service support, or a state government entity that provides, using its own facilities, such telecommunications offerings to such schools, libraries, and rural health care providers.</P> <P>(l) <E T="03">Wide area network.</E> For purposes of this subpart, a “wide area network” is a voice or data network that provides connections from one or more computers within an eligible school or library to one or more computers or networks that are external to such eligible school or library. Excluded from this definition is a voice or data network that provides connections between or among instructional buildings of a single school campus or between or among non-administrative buildings of a single library branch.</P> <CITA>[63 FR 2128, Jan. 13, 1998]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.501</SECTNO> <SUBJECT>Eligibility for services provided by telecommunications carriers.</SUBJECT> <P>(a) Telecommunications carriers shall be eligible for universal service support under this subpart for providing supported services to eligible schools, libraries, and consortia including those entities.</P> <P>(b) <E T="03">Schools</E>. (1) Only schools meeting the statutory definitions of “elementary school,” as defined in 20 U.S.C. 8801(14), or “secondary school,” as defined in 20 U.S.C. 8801(25), and not excluded under paragraphs (b)(2) or (b)(3) of this section shall be eligible for discounts on telecommunications and other supported services under this subpart.</P> <P>(2) Schools operating as for-profit businesses shall not be eligible for discounts under this subpart.</P> <P>(3) Schools with endowments exceeding $50,000,000 shall not be eligible for discounts under this subpart.</P> <P>(c) <E T="03">Libraries.</E> (1) Only libraries eligible for assistance from a State library administrative agency under the Library Services and Technology Act (Public Law 104-208) and not excluded under paragraphs (c)(2) or (c)(3) of this section shall be eligible for discounts under this subpart.</P> <P>(2) A library's eligibility for universal service funding shall depend on its funding as an independent entity. Only libraries whose budgets are completely separate from any schools (including, but not limited to, elementary and secondary schools, colleges, and universities) shall be eligible for discounts as libraries under this subpart.<PRTPAGE P="112"/> </P> <P>(3) Libraries operating as for-profit businesses shall not be eligible for discounts under this subpart.</P> <P>(d) <E T="03">Consortia.</E> (1) For purposes of seeking competitive bids for telecommunications services, schools and libraries eligible for support under this subpart may form consortia with other eligible schools and libraries, with health care providers eligible under subpart G, and with public sector (governmental) entities, including, but not limited to, state colleges and state universities, state educational broadcasters, counties, and municipalities, when ordering telecommunications and other supported services under this subpart. With one exception, eligible schools and libraries participating in consortia with ineligible private sector members shall not be eligible for discounts for interstate services under this subpart. A consortium may include ineligible private sector entities if the pre-discount prices of any services that such consortium receives from ILECs are generally tariffed rates.</P> <P>(2) For consortia, discounts under this subpart shall apply only to the portion of eligible telecommunications and other supported services used by eligible schools and libraries.</P> <P>(3) Service providers shall keep and retain records of rates charged to and discounts allowed for eligible schools and libraries—on their own or as part of a consortium. Such records shall be available for public inspection.</P> <CITA>[62 FR 32948, June 17, 1997, as amended at 63 FR 2129, Jan. 13, 1998]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.502</SECTNO> <SUBJECT>Supported telecommunications services.</SUBJECT> <P>For purposes of this subpart, supported telecommunications services provided by telecommunications carriers include all commercially available telecommunications services in addition to all reasonable charges that are incurred by taking such services, such as state and federal taxes. Charges for termination liability, penalty surcharges, and other charges not included in the cost of taking such service shall not be covered by the universal service support mechanisms.</P> <CITA>[63 FR 2129, Jan. 13, 1998]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.503</SECTNO> <SUBJECT>Other supported special services.</SUBJECT> <P>For the purposes of this subpart, other supported special services provided by telecommunications carriers include Internet access and installation and maintenance of internal connections in addition to all reasonable charges that are incurred by taking such services, such as state and federal taxes. Charges for termination liability, penalty surcharges, and other charges not included in the cost of taking such services shall not be covered by the universal service support mechanisms.</P> <CITA>[63 FR 2129, Jan. 13, 1998]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.504</SECTNO> <SUBJECT>Requests for services.</SUBJECT> <P>(a) <E T="03">Competitive bid requirements</E>. Except as provided in § 54.511(c), an eligible school, library, or consortium that includes an eligible school or library shall seek competitive bids, pursuant to the requirements established in this subpart, for all services eligible for support under §§ 54.502 and 54.503. These competitive bid requirements apply in addition to state and local competitive bid requirements and are not intended to preempt such state or local requirements.</P> <P>(b) <E T="03">Posting of FCC Form 470.</E> (1) An eligible school, library, or consortium that includes an eligible school or library seeking to receive discounts for eligible services under this subpart, shall submit a completed FCC Form 470 to the Administrator. FCC Form 470 shall include, at a minimum, the following information, to the extent applicable with respect to the services requested:</P> <P>(i) The computer equipment currently available or budgeted for purchase for the current, next, or other future academic years, as well as whether the computers have modems and, if so, what speed modems;</P> <P>(ii) The internal connections, if any, that the school or library has in place or has budgeted to install in the current, next, or future academic years, or any specific plans for an organized voluntary effort to connect the classrooms;</P> <P>(iii) The computer software necessary to communicate with other computers <PRTPAGE P="113"/>over an internal network and over the public telecommunications network currently available or budgeted for purchase for the current, next, or future academic years;</P> <P>(iv) The experience of, and training received by, the relevant staff in the use of the equipment to be connected to the telecommunications network and training programs for which funds are committed for the current, next, or future academic years;</P> <P>(v) Existing or budgeted maintenance contracts to maintain computers; and</P> <P>(vi) The capacity of the school's or library's electrical system in terms of how many computers can be operated simultaneously without creating a fire hazard.</P> <P>(2) FCC Form 470 shall be signed by the person authorized to order telecommunications and other supported services for the eligible school, library, or consortium and shall include that person's certification under oath that:</P> <P>(i) The school or library is an eligible entity under §§ 254(h)(4) and 254(h)(5) of the Act and the rules adopted under this subpart;</P> <P>(ii) The services requested will be used solely for educational purposes;</P> <P>(iii) The services will not be sold, resold, or transferred in consideration for money or any other thing of value;</P> <P>(iv) If the services are being purchased as part of an aggregated purchase with other entities, the request identifies all co-purchasers and the services or portion of the services being purchased by the school or library;</P> <P>(v) All of the necessary funding in the current funding year has been budgeted and approved to pay for the “non-discount” portion of requested connections and services as well as any necessary hardware or software, and to undertake the necessary staff training required to use the services effectively;</P> <P>(vi) The school, library, or consortium including those entities has complied with all applicable state and local procurement processes; and</P> <P>(vii) The school, library, or consortium including those entities has a technology plan that has been certified by its state, the Administrator, or an independent entity approved by the Commission.</P> <P>(3) The Administrator shall post each FCC Form 470 that it receives from an eligible school, library, or consortium that includes an eligible school or library on its website designated for this purpose.</P> <P>(4) After posting on the Administrator's website an eligible school's, library's, or consortium's FCC Form 470, the Administrator shall send confirmation of the posting to the entity requesting service. That entity shall then wait at least four weeks from the date on which its description of services is posted on the Administrator's website before making commitments with the selected providers of services. The confirmation from the Administrator shall include the date after which the requestor may sign a contract with its chosen provider(s).</P> <P>(c) <E T="03">Filing of FCC Form 471</E>. An eligible school, library, or consortium that includes an eligible school or library seeking to receive discounts for eligible services under this subpart, shall, upon signing a contract for eligible services, submit a completed FCC Form 471 to the Administrator. A commitment of support is contingent upon the filing of FCC Form 471.</P> <P>(d) <E T="03">Rate disputes.</E> Schools, libraries, and consortia including those entities, and service providers may have recourse to the Commission, regarding interstate rates, and to state commissions, regarding intrastate rates, if they reasonably believe that the lowest corresponding price is unfairly high or low.</P> <P>(1) Schools, libraries, and consortia including those entities may request lower rates if the rate offered by the carrier does not represent the lowest corresponding price.</P> <P>(2) Service providers may request higher rates if they can show that the lowest corresponding price is not compensatory, because the relevant school, library, or consortium including those entities is not similarly situated to and subscribing to a similar set of services to the customer paying the lowest corresponding price.</P> <CITA>[62 FR 32948, June 17, 1997, as amended at 62 FR 41304, Aug. 1, 1997; 63 FR 2129, Jan. 13, 1998; 63 FR 70572, Dec. 21, 1998]</CITA> </SECTION> <SECTION> <PRTPAGE P="114"/> <SECTNO>§ 54.505</SECTNO> <SUBJECT>Discounts.</SUBJECT> <P>(a) <E T="03">Discount mechanism.</E> Discounts for eligible schools and libraries shall be set as a percentage discount from the pre-discount price.</P> <P>(b) <E T="03">Discount percentages.</E> The discounts available to eligible schools and libraries shall range from 20 percent to 90 percent of the pre-discount price for all eligible services provided by eligible providers, as defined in this subpart. The discounts available to a particular school, library, or consortium of only such entities shall be determined by indicators of poverty and high cost.</P> <P>(1) For schools and school districts, the level of poverty shall be measured by the percentage of their student enrollment that is eligible for a free or reduced price lunch under the national school lunch program or a federally-approved alternative mechanism. School districts applying for eligible services on behalf of their individual schools may calculate the district-wide percentage of eligible students using a weighted average. For example, a school district would divide the total number of students in the district eligible for the national school lunch program by the total number of students in the district to compute the district-wide percentage of eligible students. Alternatively, the district could apply on behalf of individual schools and use the respective percentage discounts for which the individual schools are eligible.</P> <P>(2) For libraries and library consortia, the level of poverty shall be based on the percentage of the student enrollment that is eligible for a free or reduced price lunch under the national school lunch program or a federally-approved alternative mechanism in the public school district in which they are located. If the library is not in a school district then its level of poverty shall be based on an average of the percentage of students eligible for the national school lunch program in each of the school districts that children living in the library's location attend. Library systems applying for discounted services on behalf of their individual branches shall calculate the system-wide percentage of eligible families using an unweighted average based on the percentage of the student enrollment that is eligible for a free or reduced price lunch under the national school lunch program in the public school district in which they are located for each of their branches or facilities.</P> <P>(3) The Administrator shall classify schools and libraries as “urban” or “rural” based on location in an urban or rural area, according to the following desigantions.</P> <P>(i) Schools and libraries located in metropolitan counties, as measured by the Office of Management and Budget's Metropolitan Statistical Area method, shall be designated as urban, except for those schools and libraries located within metropolitan counties identified by census block or tract in the Goldsmith Modification.</P> <P>(ii) Schools and libraries located in non-metropolitan counties, as measured by the Office of Management and Budget's Metropolitan Statistical Area method, shall be designated as rural. Schools and libraries located in rural areas within metropolitan counties identified by census block or tract in the Goldsmith Modification shall also be designated as rural.</P> <P>(4) School districts, library systems, or other billed entities shall calculate discounts on supported services described in § 54.502 or other supported special services described in § 54.503 that are shared by two or more of their schools, libraries, or consortia members by calculating an average based on the applicable discounts of all member schools and libraries. School districts, library systems, or other billed entities shall ensure that, for each year in which an eligible school or library is included for purposes of calculating the aggregate discount rate, that eligible school or library shall receive a proportionate share of the shared services for which support is sought. For schools, the average discount shall be a weighted average of the applicable discount of all schools sharing a portion of the shared services, with the weighting based on the number of students in each school. For libraries, the average discount shall be a simple average of the applicable discounts to which the libraries sharing a portion of the shared services are entitled.<PRTPAGE P="115"/> </P> <P>(c) <E T="03">Matrix.</E> The Administrator shall use the following matrix to set a discount rate to be applied to eligible interstate services purchased by eligible schools, school districts, libraries, or library consortia based on the institution's level of poverty and location in an “urban” or “rural” area.</P> <GPOTABLE CDEF="s200,15,15" COLS="3" OPTS="L2,i1"> <BOXHD> <CHED H="1">Schools and Libraries discount matrix</CHED> <CHED H="2">How disadvantaged?</CHED> <CHED H="3">% of students eligible for national school lunch program</CHED> <CHED H="1">Discount level</CHED> <CHED H="2">Urban discount</CHED> <CHED H="2">Rural discount</CHED> </BOXHD> <ROW> <ENT I="01"><1</ENT> <ENT>20</ENT> <ENT>25</ENT> </ROW> <ROW> <ENT I="01">1-19</ENT> <ENT>40</ENT> <ENT>50</ENT> </ROW> <ROW> <ENT I="01">20-34</ENT> <ENT>50</ENT> <ENT>60</ENT> </ROW> <ROW> <ENT I="01">35-49</ENT> <ENT>60</ENT> <ENT>70</ENT> </ROW> <ROW> <ENT I="01">50-74</ENT> <ENT>80</ENT> <ENT>80</ENT> </ROW> <ROW> <ENT I="01">75-100</ENT> <ENT>90</ENT> <ENT>90</ENT> </ROW> </GPOTABLE> <P>(d) [Reserved]</P> <P>(e) <E T="03">Interstate and intrastate services</E>. Federal universal service support for schools and libraries shall be provided for both interstate and intrastate services.</P> <P>(1) Federal universal service support under this subpart for eligible schools and libraries in a state is contingent upon the establishment of intrastate discounts no less than the discounts applicable for interstate services.</P> <P>(2) A state may, however, secure a temporary waiver of this latter requirement based on unusually compelling conditions.</P> <P>(f) <E T="03">State support.</E> Federal universal service discounts shall be based on the price of a service prior to the application of any state provided support for schools or libraries.</P> <CITA>[62 FR 32948, June 17, 1997, as amended at 62 FR 41304, Aug. 1, 1997; 63 FR 2130, Jan. 13, 1998; 63 FR 70572, Dec. 21, 1998]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.506</SECTNO> <SUBJECT>Internal connections.</SUBJECT> <P>A service is eligible for support as a component of an institution's internal connections if such service is necessary to transport information within one or more instructional buildings of a single school campus or within one or more non-administrative buildings that comprise a single library branch. Discounts are not available for internal connections in non-instructional buildings of a school or school district, or in administrative buildings of a library, to the extent that a library system has separate administrative buildings, unless those internal connections are essential for the effective transport of information to an instructional building of a school or to a non-administrative building of a library. Internal connections do not include connections that extend beyond a single school campus or single library branch. There is a rebuttable presumption that a connection does not constitute an internal connection if it crosses a public right-of-way.</P> <CITA>[63 FR 2130, Jan. 13, 1998]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.507</SECTNO> <SUBJECT>Cap.</SUBJECT> <P>(a) <E T="03">Amount of the annual cap.</E> The annual cap on federal universal service support for schools and libraries shall be $2.25 billion per funding year, and all funding authority for a given funding year that is unused in that funding year shall be carried forward into subsequent funding years for use in accordance with demand, with the following exceptions:</P> <P>(1) No more than $562.5 million shall be collected or spent per quarter for the third and fourth quarters of 1999 and the first and second quarters of 2000 to support the schools and libraries universal service support mechanism. No more than $2.25 billion shall be collected or disbursed during the twelve month period from July 1, 1999 through June 30, 2000.</P> <P>(2) The carryover of unused funding authority will not apply for the funding period January 1, 1998 through June 30, 1999. To the extent that the amounts collected in the funding period January 1, 1998 through June 30, 1999 are less than $2.25 billion, the difference will not be carried over to subsequent funding years. Carryover of funds will occur only to the extent that <PRTPAGE P="116"/>funds are collected but not disbursed in the funding period January 1, 1998 through June 30, 1999.</P> <P>(b) A funding year for purposes of the schools and libraries cap shall be the period July 1 through June 30. For the initiation of the mechanism only, the eighteen month period from January 1, 1998 to June 30, 1999 shall be considered a funding year. For the 1998-99 funding year:</P> <P>(1) Schools and libraries filing applications within the initial 75-day filing window, and receiving approval for discounts on recurring services, shall receive funding for requested recurring services through June 30, 1999; and</P> <P>(2) Schools and libraries filing applications within the initial 75-day filing window, and receiving approval for discounts on eligible nonrecurring services, may receive those nonrecurring services subject to the approved discount amounts through September 30, 1999.</P> <P>(c) <E T="03">Requests</E>. Funds shall be available to fund discounts for eligible schools and libraries and consortia of such eligible entities on a first-come-first-served basis, with requests accepted beginning on the first of July prior to each funding year. The Administrator shall maintain on the Administrator's website a running tally of the funds already committed for the existing funding year. The Administrator shall implement an initial filing period that treats all schools and libraries filing within that period as if their applications were simultaneously received. The initial filing period shall begin on the date that the Administrator begins to receive applications for support, and shall conclude on a date to be determined by the Administrator. The Administrator may implement such additional filing periods as it deems necessary.</P> <P>(d) <E T="03">Annual filing requirement</E>. Schools and libraries, and consortia of such eligible entities shall file new funding requests for each funding year no sooner than the July 1 prior to the start of that funding year.</P> <P>(e) <E T="03">Long term contracts</E>. If schools and libraries enter into long term contracts for eligible services, the Administrator shall only commit funds to cover the pro rata portion of such a long term contract scheduled to be delivered during the funding year for which universal service support is sought.</P> <P>(f) <E T="03">Date services must be supplied</E>. The Administrator shall not approve funding for services received by a school or library before January 1, 1998.</P> <P>(g) <E T="03">Rules of priority.</E> Administrator shall act in accordance with paragraph (g)(1) of this section with respect to applicants that file a Form 471, as described in § 54.504(c) of this part, when a filing period described in paragraph (c) of this section is in effect. Administrator shall act in accordance with paragraph (g)(2) of this section with respect to applicants that file a Form 471, as described in § 54.504(c) of this part, at all times other than within a filing period described in paragraph (c) of this section.</P> <P>(1) When the filing period described in paragraph (c) of this section closes, Administrator shall calculate the total demand for support submitted by applicants during the filing period. If total demand exceeds the total support available for that funding year, Administrator shall take the following steps:</P> <P>(i) Schools and Libraries Corporation shall first calculate the demand for telecommunications services and Internet access for all discount categories, as determined by the schools and libraries discount matrix in § 54.505(c) of this part. These services shall receive first priority for the available funding.</P> <P>(ii) Schools and Libraries Corporation shall then calculate the amount of available funding remaining after providing support for all telecommunications services and Internet access for all discount categories. Schools and Libraries Corporation shall allocate the remaining funds to the requests for support for internal connections, beginning with the most economically disadvantaged schools and libraries, as determined by the schools and libraries discount matrix in § 54.505(c) of this part. Schools and libraries eligible for a 90 percent discount shall receive first priority for the remaining funds, and those funds will be applied to their requests for internal connections.</P> <P>(iii) To the extent that funds remain after the allocation described in § 54.507(g)(1) (i) and (ii), Schools and Libraries Corporation shall next allocate <PRTPAGE P="117"/>funds toward the requests for internal connections submitted by schools and libraries eligible for an 80 percent discount, then for a 70 percent discount, and shall continue committing funds for internal connections in the same manner to the applicants at each descending discount level until there are no funds remaining. </P> <NOTE> <HD SOURCE="HED">Note to paragraph (g)(l)(iii):</HD> <P>To the extent that there are single discount percentage levels associated with “shared services” under § 54.505(b)(4), the Administrator shall allocate funds for internal connections beginning at the ninety percent discount level, then for the eighty-nine percent discount, then for the eighty-eight percent discount, and shall continue committing funds for internal connections in the same manner to the applicants at each descending discount level until there are no funds remaining.</P> </NOTE> <P>(iv) If the remaining funds are not sufficient to support all of the funding requests within a particular discount level, Schools and Libraries Corporation shall divide the total amount of remaining support available by the amount of support requested within the particular discount level to produce a pro-rata factor. Schools and Libraries Corporation shall reduce the support level for each applicant within the particular discount level, by multiplying each applicant's requested amount of support by the pro-rata factor.</P> <P>(v) Schools and Libraries Corporation shall commit funds to all applicants consistent with the calculations described herein.</P> <P>(2) <E T="03">Rules of priority</E>. When expenditures in any funding year reach the level where only $250 million remains before the cap will be reached, funds shall be distributed in accordance to the following rules of priority:</P> <P>(i) The Administrator or the Administrator's subcontractor shall post a message on the Administrator's website, notify the Commission, and take reasonable steps to notify the educational and library communities that commitments for the remaining $250 million of support will only be made to the most economically disadvantaged schools and libraries (those in the two most disadvantaged categories) for the next 30 days or the remainder of the funding year, whichever is shorter.</P> <P>(ii) The most economically disadvantaged schools and libraries (those in the two most disadvantaged categories) that have not received discounts from the universal service support mechanism in the previous or current funding years shall have exclusive rights to secure commitments for universal service support under this subpart for a 30-day period or the remainder of the funding year, whichever is shorter. If such schools and libraries have received universal service support only for basic telephone service in the previous or current funding years, they shall remain eligible for the highest priority once spending commitments leave only $250 million remaining before the funding cap is reached.</P> <P>(iii) Other economically disadvantaged schools and libraries (those in the two most disadvantaged categories) that have received discounts from the universal service support mechanism in the previous or current funding years shall have the next highest priority, if additional funds are available at the end of the 30-day period or the funding year, whichever is shorter.</P> <P>(iv) After all requests submitted by schools and libraries described in paragraphs (g)(2) and (g)(3) of this section during the 30-day period have been met, the Administrator shall allocate the remaining available funds to all other eligible schools and libraries in the order in which their requests have been received by the Administrator, until the $250 million is exhausted or the funding year ends.</P> <CITA>[62 FR 32948, June 17, 1997, as amended at 62 FR 40748, July 30, 1997; 62 FR 41304, Aug. 1, 1997; 62 FR 56120, Oct. 29, 1997; 63 FR 2130, Jan. 13, 1998; 63 FR 3832, Jan. 27, 1998; 63 FR 45958, Aug. 28, 1998; 63 FR 70572, Dec. 21, 1998; 64 FR 22810, Apr. 28, 1999; 64 FR 30442, June 8, 1999; 64 FR 33788, June 24, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.509</SECTNO> <SUBJECT>Adjustments to the discount matrix.</SUBJECT> <P>(a) <E T="03">Estimating future spending requests</E>. When submitting their requests for specific amounts of funding for a funding year, schools, libraries, library consortia, and consortia including such entities shall also estimate their funding requests for the following funding year <PRTPAGE P="118"/>to enable the Administrator, to estimate funding demand for the following year.</P> <P>(b) <E T="03">Reduction in percentage discounts</E>. If the estimates schools and libraries make of their future funding needs lead the Administrator to predict that total funding requests for a funding year will exceed the available funding, the Administrator shall calculate the percentage reduction to all schools and libraries, except those in the two most disadvantaged categories, necessary to permit all requests in the next funding year to be fully funded.</P> <P>(c) <E T="03">Remaining funds</E>. If funds remain under the cap at the end of the funding year in which discounts have been reduced below those set in the matrices, the Administrator shall consult with the Commission to establish the best way to distribute those funds.</P> <CITA>[62 FR 32948, June 17, 1997, as amended at 62 FR 41304, Aug. 1, 1997; 63 FR 70572, Dec. 21, 1998]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.511</SECTNO> <SUBJECT>Ordering services.</SUBJECT> <P>(a) <E T="03">Selecting a provider of eligible services</E>. In selecting a provider of eligible services, schools, libraries, library consortia, and consortia including any of those entities shall carefully consider all bids submitted and may consider relevant factors other than the pre-discount prices submitted by providers.</P> <P>(b) <E T="03">Lowest corresponding price.</E> Providers of eligible services shall not charge schools, school districts, libraries, library consortia, or consortia including any of these entities a price above the lowest corresponding price for supported services, unless the Commission, with respect to interstate services or the state commission with respect to intrastate services, finds that the lowest corresponding price is not compensatory. Promotional rates offered by a service provider for a period of more than 90 days must be included among the comparable rates upon which the lowest corresponding price is determined.</P> <P>(c) <E T="03">Existing contracts.</E> (1) A signed contract for services eligible for discounts pursuant to this subpart between an eligible school or library as defined under § 54.501 or consortium that includes an eligible school or library and a service provider shall be exempt from the requirements set forth in § 54.504(a), (b)(3), and (b)(4) as follows:</P> <P>(i) A contract signed on or before July 10, 1997 is exempt from the competitive bid requirements for the life of the contract; or</P> <P>(ii) A contract signed after July 10, 1997, but before the date on which the universal service competitive bid system described in § 54.504 is operational, is exempt from the competitive bid requirements only with respect to services that are provided under such contract between January 1, 1998 and December 31, 1998.</P> <P>(2) For a school, library, or consortium that includes an eligible school or library that takes service under or pursuant to a master contract, the date of execution of that master contract represents the applicable date for purposes of determining whether and to what extent the school, library, or consortium is exempt from the competitive bid requirements.</P> <P>(3) The competitive bid system will be deemed to be operational when the Administrator is ready to accept and post FCC Form 470 from schools and libraries on a website and that website is available for use by service providers.</P> <P>(d)(1) The exemption from the competitive bid requirements set forth in paragraph (c) of this section shall not apply to voluntary extensions or renewals of existing contracts, with the exception that an eligible school or library as defined under § 54.501 or consortium that includes an eligible school or library, that filed an application within the 75-day initial filing window for 1998 (January 30, 1998-April 15, 1998), may voluntarily extend or renew, to a date no later than June 30, 1999, an existing contract that otherwise would terminate between April 15, 1998 and June 30, 1999.</P> <P>(2) For the 1998-1999 funding year, a contract exempt from the competitive bid requirement, as described in paragraph (c) of this section, may be voluntarily extended to September 30, 1999 only to the extent necessary to permit delivery of the nonrecurring services <PRTPAGE P="119"/>subject to that contract and for which discounts have been approved.</P> <CITA>[62 FR 32948, June 17, 1997, as amended at 63 FR 2130, Jan. 13, 1998; 63 FR 33586, June 19, 1998; 63 FR 43097, Aug. 12, 1998; 63 FR 70572, Dec. 21, 1998; 64 FR 22810, Apr. 28, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.513</SECTNO> <SUBJECT>Resale.</SUBJECT> <P>(a) <E T="03">Prohibition on resale.</E> Eligible services purchased at a discount under this subpart shall not be sold, resold, or transferred in consideration of money or any other thing of value.</P> <P>(b) <E T="03">Permissible fees.</E> This prohibition on resale shall not bar schools, school districts, libraries, and library consortia from charging either computer lab fees or fees for classes in how to navigate over the Internet. There is no prohibition on the resale of services that are not purchased pursuant to the discounts provided in this subpart.</P> </SECTION> <SECTION> <SECTNO>§ 54.515</SECTNO> <SUBJECT>Distributing support.</SUBJECT> <P>(a) A telecommunications carrier providing services eligible for support under this subpart to eligible schools and libraries may, at the election of the carrier, treat the amount eligible for support under this subpart as an offset against the carrier's universal service contribution obligation for the year in which the costs for providing eligible services were incurred or receive a direct reimbursement from the Administrator for that amount. Carriers shall elect in January of each year the method by which they will be reimbursed and shall remain subject to that method for the duration of the calendar year. Any support amount that is owed a carrier that fails to remit its monthly universal service contribution obligation, however, shall first be applied as an offset to that carrier's contribution obligation. Such a carrier shall remain subject to the offsetting method for the remainder of the calendar year in which it failed to remit their monthly universal service obligation. A carrier that continues to be in arrears on its universal service contribution obligations at the end of a calendar year shall remain subject to the offsetting method for the next calendar year.</P> <P>(b) If a telecommunications carrier elects to treat the amount eligible for support under this subpart as an offset against the carrier's universal service contribution obligation and the total amount of support owed to the carrier exceeds its universal service obligation, calculated on an annual basis, the carrier shall receive a direct reimbursement in the amount of the difference. Any such reimbursement due a carrier shall be submitted to that carrier no later than the end of the first quarter of the calendar year following the year in which the costs were incurred and the offset against the carrier's universal service obligation was applied.</P> <CITA>[63 FR 67009, Dec. 4, 1998]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.516</SECTNO> <SUBJECT>Auditing.</SUBJECT> <P>(a) <E T="03">Recordkeeping requirements.</E> Schools and libraries shall be required to maintain for their purchases of telecommunications and other supported services at discounted rates the kind of procurement records that they maintain for other purchases.</P> <P>(b) <E T="03">Production of records.</E> Schools and libraries shall produce such records at the request of any auditor appointed by a state education department, the Administrator, or any state or federal agency with jurisdiction.</P> <P>(c) <E T="03">Random audits.</E> Schools and libraries shall be subject to random compliance audits to evaluate what services they are purchasing and how such services are being used.</P> <CITA>[62 FR 32948, June 17, 1997, as amended at 62 FR 41304, Aug. 1, 1997; 63 FR 70572, Dec. 21, 1998]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.517</SECTNO> <SUBJECT>Services provided by non-telecommunications carriers.</SUBJECT> <P>(a) Non-telecommunications carriers shall be eligible for universal service support under this subpart for providing the supported services described in paragraph (b) of this section for eligible schools, libraries, and consortia including those entities.</P> <P>(b) <E T="03">Supported services.</E> Non-telecommunications carriers shall be eligible for universal service support under this subpart for providing Internet access and installation and maintenance of internal connections.<PRTPAGE P="120"/> </P> <P>(c) <E T="03">Requirements.</E> Such services provided by non-telecommunications carriers shall be subject to all the provisions of this subpart, except §§ 54.501(a), 54.502, 54.503, 54.515.</P> <CITA>[62 FR 32948, June 17, 1997, as amended at 63 FR 2131, Jan. 13, 1998]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.518</SECTNO> <SUBJECT>Support for wide area networks.</SUBJECT> <P>To the extent that states, schools, or libraries build or purchase a wide area network to provide telecommunications services, the cost of such wide area networks shall not be eligible for universal service discounts provided under this subpart.</P> <CITA>[63 FR 2131, Jan. 13, 1998]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.519</SECTNO> <SUBJECT>State telecommunications networks.</SUBJECT> <P>(a) <E T="03">Telecommunications services.</E> State telecommunications networks may secure discounts under the universal service support mechanisms on supported telecommunications services (as described in § 54.502) on behalf of eligible schools and libraries (as described in § 54.501) or consortia that include an eligible school or library. Such state telecommunications networks shall pass on such discounts to eligible schools and libraries and shall:</P> <P>(1) Maintain records listing each eligible school and library and showing the basis for each eligibility determination;</P> <P>(2) Maintain records demonstrating the discount amount to which each eligible school and library is entitled and the basis for such determination;</P> <P>(3) Take reasonable steps to ensure that each eligible school or library receives a proportionate share of the shared services;</P> <P>(4) Request that service providers apply the appropriate discount amounts on the portion of the supported services used by each school or library;</P> <P>(5) Direct eligible schools and libraries to pay the discounted price; and</P> <P>(6) Comply with the competitive bid requirements set forth in § 54.504(a).</P> <P>(b) <E T="03">Internet access and installation and maintenance of internal connections.</E> State telecommunications networks either may secure discounts on Internet access and installation and maintenance of internal connections in the manner described in paragraph (a) of this section with regard to telecommunications, or shall be eligible, consistent with § 54.517(b), to receive universal service support for providing such services to eligible schools, libraries, and consortia including those entities.</P> <CITA>[63 FR 2131, Jan. 13, 1998; 63 FR 33586, June 19, 1998]</CITA> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart G—Universal Service Support for Health Care Providers</HD> <SECTION> <SECTNO>§ 54.601</SECTNO> <SUBJECT>Eligibility.</SUBJECT> <P>(a) <E T="03">Health care providers.</E> (1) Only an entity meeting the definition of “health care provider” as defined in this section shall be eligible to receive supported services under this subpart.</P> <P>(2) For purposes of this subpart, a “health care provider” is any:</P> <P>(i) Post-secondary educational institution offering health care instruction, including a teaching hospital or medical school;</P> <P>(ii) Community health center or health center providing health care to migrants;</P> <P>(iii) Local health department or agency;</P> <P>(iv) Community mental health center;</P> <P>(v) Not-for-profit hospital;</P> <P>(vi) Rural health clinic; or</P> <P>(vii) Consortium of health care providers consisting of one or more entities described in paragraphs (a)(2)(i) through (a)(2)(vi) of this section.</P> <P>(3) Only public or non-profit health care providers shall be eligible to receive supported services under this subpart.</P> <P>(4) Except with regard to those services provided under § 54.621, only a rural health care provider shall be eligible to receive supported services under this subpart. A “rural health care provider” is a health care provider located in a rural area, as defined in this part.</P> <P>(5) Each separate site or location of a health care provider shall be considered an individual health care provider for purposes of calculating and limiting support under this subpart.</P> <P>(b) <E T="03">Consortia.</E> (1) An eligible health care provider may join a consortium <PRTPAGE P="121"/>with other eligible health care providers; with schools, libraries, and library consortia eligible under Subpart F; and with public sector (governmental) entities to order telecommunications services. With one exception, eligible health care providers participating in consortia with ineligible private sector members shall not be eligible for supported services under this subpart. A consortium may include ineligible private sector entities if such consortium is only receiving services at tariffed rates or at market rates from those providers who do not file tariffs.</P> <P>(2) For consortia, universal service support under this subpart shall apply only to the portion of eligible services used by an eligible health care provider.</P> <P>(3) Telecommunications carriers, health care providers, and consortia of health care providers shall carefully maintain complete records of how they allocate the costs of shared facilities among consortium participants in order to charge eligible health care providers the correct amounts. Such records shall be available for public inspection.</P> <P>(4) Telecommunications carriers, health care providers, and consortia of health care providers shall calculate and justify with supporting documentation the amount of support for which each member of a consortium is eligible.</P> <P>(c) <E T="03">Services.</E> </P> <P>(1) Any telecommunications service that is the subject of a properly completed bona fide request by a rural health care provider shall be eligible for universal service support, subject to the limitations described in this paragraph. The length of a supported telecommunications service may not exceed the distance between the health care provider and the point farthest from that provider on the jurisdictional boundary of the nearest large city as defined in § 54.605(c).</P> <P>(2) Limited toll-free access to an Internet service provider shall be eligible for universal service support under § 54.621.</P> <CITA>[62 FR 32948, June 17, 1997, as amended at 64 FR 66787, Nov. 30, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.603</SECTNO> <SUBJECT>Competitive bid requirements.</SUBJECT> <P>(a) <E T="03">Competitive bidding requirement.</E> To select the telecommunications carriers that will provide services eligible for universal service support to it under this subpart, each eligible health care provider shall participate in a competitive bidding process pursuant to the requirements established in this subpart and any additional and applicable state, local, or other procurement requirements.</P> <P>(b) <E T="03">Posting of FCC Form 465</E>. (1) An eligible health care provider seeking to receive telecommunications services eligible for universal service support under this subpart shall submit a completed FCC Form 465 to the Rural Health Care Corporation. FCC Form 465 shall be signed by the person authorized to order telecommunications services for the health care provider and shall include, at a minimum, that person's certification under oath that:</P> <P>(i) The requester is a public or non-profit entity that falls within one of the seven categories set forth in the definition of health care provider, listed in § 54.601(a);</P> <P>(ii) The requester is physically located in a rural area, unless the health care provider is requesting services provided under § 54.621;</P> <P>(iii) If the health care provider is requesting services provided under § 54.621, that the requester cannot obtain toll-free access to an Internet service provider;</P> <P>(iv) The requested service or services will be used solely for purposes reasonably related to the provision of health care services or instruction that the health care provider is legally authorized to provide under the law in the state in which such health care services or instruction are provided;</P> <P>(v) The requested service or services will not be sold, resold or transferred in consideration of money or any other thing of value; and</P> <P>(vi) If the service or services are being purchased as part of an aggregated purchase with other entities or individuals, the full details of any such arrangement, including the identities of all co-purchasers and the portion of the service or services being purchased by the health care provider.<PRTPAGE P="122"/> </P> <P>(2) The Rural Health Care Corporation shall post each FCC Form 465 that it receives from an eligible health care provider on its website designated for this purpose.</P> <P>(3) After posting an eligible health care providers FCC Form 465 on the Rural Health Care Corporation website, the Rural Health Care Corporation shall send confirmation of the posting to the entity requesting services. The health care provider shall wait at least 28 days from the date on which its FCC Form 465 is posted on the website before making commitments with the selected telecommunications carrier(s).</P> <P>(4) After selecting a telecommunications carrier, the health care provider shall certify to the Rural Health Care Corporation that the provider is selecting the most cost-effective method of providing the requested service or services, where the most cost-effective method of providing a service is defined as the method that costs the least after consideration of the features, quality of transmission, reliability, and other factors that the health care provider deems relevant to choosing a method of providing the required health care services. The health care provider shall submit to the Administrator paper copies of the responses or bids received in response to the requested services.</P> <P>(5) The confirmation from the Rural Health Care Corporation shall include the date after which the requester may sign a contract with its chosen telecommunications carrier(s).</P> <CITA>[62 FR 32948, June 17, 1997, as amended at 62 FR 41304, Aug. 1, 1997; 63 FR 2131, Jan. 13, 1998]</CITA> <EDNOTE> <HD SOURCE="HED">Editorial Note:</HD> <P>At 63 FR 70572, Dec. 21, 1998, § 54.603(a)(1) through (5) was amended by changing the words “Rural Health Care Corporation” to “Administrator”, however, (a)(1) through (5) did not exist in the 1998 edition of this volume.</P> </EDNOTE> </SECTION> <SECTION> <SECTNO>§ 54.604</SECTNO> <SUBJECT>Existing contracts.</SUBJECT> <P>(a) <E T="03">Existing contracts</E>. A signed contract for services eligible for support pursuant to this subpart between an eligible health care provider as defined under § 54.601 and a telecommunications carrier shall be exempt from the competitive bid requirements set forth in § 54.603(a) as follows:</P> <P>(1) A contract signed on or before July 10, 1997 is exempt from the competitive bid requirement for the life of the contract; or</P> <P>(2) A contract signed after July 10, 1997 but before the date on which the universal service competitive bid system described in § 54.603 is operational is exempt from the competitive bid requirements only with respect to services that will be provided under such contract between January 1, 1998 and December 31, 1998.</P> <P>(b) For rural health care providers that take service under or pursuant to a master contract, as defined in § 54.500(f), the date of execution of that master contract represents the applicable date for purposes of determining whether and to what extent the rural health care provider is exempt from the competitive bid requirements.</P> <P>(c) The competitive bid system will be deemed to be operational when the Administrator is ready to accept and post FCC Form 465 from rural health care providers on a website and that website is available for use by telecommunications carriers.</P> <P>(d) The exemption from competitive bid requirements set forth in paragraph (a) of this section shall not apply to voluntary extensions or renewals of existing contracts, except to the extent that an eligible rural health care provider as defined in § 54.601 or consortium that includes an eligible health care provider, and that filed an application within the 75-day initial filing window for 1998 (May 1, 1998—July 14, 1998), may voluntarily extend or renew, to a date no later than June 30, 1999, an existing contract that otherwise would terminate between July 14, 1998 and June 30, 1999.</P> <CITA>[63 FR 2131, Jan. 13, 1998; 63 FR 33586, June 19, 1998, as amended at 63 FR 70572, Dec. 21, 1998; 64 FR 22810, Apr. 28, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.605</SECTNO> <SUBJECT>Determining the urban rate.</SUBJECT> <P>(a) If a rural health care provider requests an eligible service to be provided over a distance that is less than or equal to the “standard urban distance,” as defined in paragraph (d) of this section, for the state in which it is located, the urban rate for that service shall be a rate no higher than the highest tariffed or publicly-available rate <PRTPAGE P="123"/>charged to a commercial customer for a similar service provided over the same distance in the nearest large city in the state, calculated as if it were provided between two points within the city.</P> <P>(b) If a rural health care provider requests an eligible service to be provided over a distance that is greater than the “standard urban distance” for the state in which it is located, the urban rate shall be no higher than the highest tariffed or publicly-available rate charged to a commercial customer for a similar service provided over the standard urban distance in the nearest large city in the state, calculated as if the service were provided between two points within the city.</P> <P>(c) The “nearest large city” is the city located in the eligible health care provider's state, with a population of at least 50,000, that is nearest to the health care provider's location, measured point to point, from the health care provider's location to the point on that city's jurisdictional boundary closest to the health care provider's location.</P> <P>(d) The “standard urban distance” for a state is the average of the longest diameters of all cities with a population of 50,000 or more within the state.</P> <P>(e) The Administrator shall calculate the “standard urban distance” and shall post the “standard urban distance” and the maximum supported distance for each state on its website.</P> <CITA>[62 FR 32948, June 17, 1997, as amended at 63 FR 2131, Jan. 13, 1998; 63 FR 70572, Dec. 21, 1998]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.607</SECTNO> <SUBJECT>Determining the rural rate.</SUBJECT> <P>(a) The rural rate shall be the average of the rates actually being charged to commercial customers, other than health care providers, for identical or similar services provided by the telecommunications carrier providing the service in the rural area in which the health care provider is located. The rates included in this average shall be for services provided over the same distance as the eligible service. The rates averaged to calculate the rural rate must not include any rates reduced by universal service support mechanisms. The “rural rate” shall be used as described in this subpart to determine the credit or reimbursement due to a telecommunications carrier that provides eligible telecommunications services to eligible health care providers.</P> <P>(b) If the telecommunications carrier serving the health care provider is not providing any identical or similar services in the rural area, then the rural rate shall be the average of the tariffed and other publicly available rates, not including any rates reduced by universal service programs, charged for the same or similar services in that rural area over the same distance as the eligible service by other carriers. If there are no tariffed or publicly available rates for such services in that rural area, or if the carrier reasonably determines that this method for calculating the rural rate is unfair, then the carrier shall submit for the state commission's approval, for intrastate rates, or the Commission's approval, for interstate rates, a cost-based rate for the provision of the service in the most economically efficient, reasonably available manner.</P> <P>(1) The carrier must provide, to the state commission, or intrastate rates, or to the Commission, for interstate rates, a justification of the proposed rural rate, including an itemization of the costs of providing the requested service.</P> <P>(2) The carrier must provide such information periodically thereafter as required, by the state commission for intrastate rates or the Commission for interstate rates. In doing so, the carrier must take into account anticipated and actual demand for telecommunications services by all customers who will use the facilities over which services are being provided to eligible health care providers.</P> </SECTION> <SECTION> <SECTNO>§ 54.609</SECTNO> <SUBJECT> Calculating support.</SUBJECT> <P>(a) Except with regard to services provided under § 54.621 and subject to the limitations set forth in this subpart, the amount of universal service support for an eligible service provided to a rural health care provider shall be the difference, if any, between the urban rate and the rural rate charged for the service, as defined herein. In addition, all reasonable charges that are incurred by taking such services, such <PRTPAGE P="124"/>as state and federal taxes shall be eligible for universal service support. Charges for termination liability, penalty surcharges, and other charges not included in the cost of taking such service shall not be covered by the universal service support mechanisms.</P> <P>(1) With one exception, the Administrator shall consider the base rates for telecommunications services elements in rural areas to be reasonably comparable to the base rates charged for similar telecommunications service elements in urban areas in that state, and, therefore, the Administrator shall not include these charges in calculating the support. The Administrator shall include, in the support calculation, all other charges specified, and all actual distance-based charges as follows:</P> <P>(i) If the requested service distance is less than or equal to the SUD for the state, the distance-based charge for that service can be no higher than the distance-based charged for a similar service over the same distance in the large city nearest to the rural health care provider;</P> <P>(ii) If the requested service distance is greater than the SUD for the state, but less than the maximum allowable distance, the distance-based charge for that service can be no higher than the distance-based charged for a similar service in the large city nearest to the rural health care provider over the SUD.</P> <P>(iii) “Distance-based charges” are charges based on a unit of distance, such as mileage-based charges.</P> <P>(iv) Except with regard to services provided under § 54.621, a telecommunications carrier that provides telecommunications service to a rural health care provider participating in an eligible health care consortium, and the consortium must establish the actual distance-based charges for the health care provider's portion of the shared telecommunications services.</P> <P>(2) If a telecommunications carrier, health care provider, and/or consortium of health care providers reasonably determines that the base rates for telecommunications services elements in rural areas are <E T="03">not</E> reasonably comparable to the base rates charged for similar telecommunications service elements in urban areas in that state, the telecommunications carrier, health care provider, and/or consortium of health care providers may request that the Administrator perform a more comprehensive support calculation. The requester shall provide to the Administrator the information to establish both the urban and rural rates consistent with § 54.605 and § 54.607, and submit to the Administrator all of the documentation necessary to substantiate the request.</P> <P>(i) Except with regard to services provided under § 54.621, a telecommunications carrier that provides telecommunications service to a rural health care provider participating in an eligible health care consortium, and the consortium must establish the applicable rural base rates for telecommunications service elements for the health care provider's portion of the shared telecommunications services, as well as the applicable urban base rates for the telecommunications service elements.</P> <P>(b) Absent documentation justifying the amount of universal service support requested for health care providers participating in a consortium, the Administrator shall not allow telecommunications carriers to offset, or receive reimbursement for, the amount eligible for universal service support.</P> <P>(c) The universal service support mechanisms shall provide support for intrastate telecommunications services, as set forth in § 54.101 paragraph (a), provided to rural health care providers as well as interstate telecommunications services.</P> <CITA>[62 FR 32948, June 17, 1997, as amended at 62 FR 41305, Aug. 1, 1997; 63 FR 2131, Jan. 13, 1998; 63 FR 70572, Dec. 21, 1998; 64 FR 66787, Nov. 30, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.611</SECTNO> <SUBJECT> Distributing support.</SUBJECT> <P>(a) A telecommunications carrier providing services eligible for support under this subpart to eligible health care providers shall treat the amount eligible for support under this subpart as an offset against the carrier's universal service support obligation for the year in which the costs for providing eligible services were incurred.<PRTPAGE P="125"/> </P> <P>(b) If the total amount of support owed to a carrier, as set forth in paragraph (a) of this section, exceeds its universal service obligation, calculated on an annual basis, the carrier may receive a direct reimbursement in the amount of the difference.</P> <P>(c) Any reimbursement due a carrier shall be made after the offset is credited against that carrier's universal service obligation.</P> <P>(d) Any reimbursement due a carrier shall be submitted to that carrier no later than the end of the first quarter of the calendar year following the year in which the costs were incurred and the offset against the carrier's universal service obligation was applied.</P> </SECTION> <SECTION> <SECTNO>§ 54.613</SECTNO> <SUBJECT>Limitations on supported services for rural health care providers.</SUBJECT> <P>(a) Upon submitting a bona fide request to a telecommunications carrier, each eligible rural health care provider is entitled to receive the most cost-effective, commercially-available telecommunications service at a rate no higher than the highest urban rate, as defined in this paragraph, at a distance not to exceed the distance between the eligible health care provider's site and the farthest point from that site that is on the jurisdictional boundary of the nearest large city, as defined in § 54.605(c).</P> <P>(b) This section shall not affect a rural health care provider's ability to obtain supported services under § 54.621.</P> <CITA>[64 FR 66787, NOV. 30, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.615</SECTNO> <SUBJECT> Obtaining services.</SUBJECT> <P>(a) <E T="03">Selecting a provider.</E> In selecting a telecommunications carrier, a health care provider shall consider all bids submitted and select the most cost-effective alternative.</P> <P>(b) <E T="03">Receiving supported rate.</E> Except with regard to services provided under § 54.621, upon receiving a bona fide request for an eligible service from an eligible health care provider, as set forth in paragraph (c) of this section, a telecommunications carrier shall provide the service at a rate no higher than the urban rate, as defined in § 54.605, subject to the limitations set forth in this Subpart.</P> <P>(c) <E T="03">Bona fide request.</E> In order to receive services eligible for universal service support under this subpart, an eligible health care provider must submit a request for services to the telecommunications carrier, Signed by an authorized officer of the health care provider, and shall include that person's certification under oath that:</P> <P>(1) The requester is a public or non-profit entity that falls within one of the seven categories set forth in the definition of health care provider, listed in § 54.601(a);</P> <P>(2) The requester is physically located in a rural area, unless the health care provider is requesting services provided under § 54.621;</P> <P>(3) If the health care provider is requesting services provided under § 54.621, that the requester cannot obtain toll-free access to an Internet service provider;</P> <P>(4) The requested service or services will be used solely for purposes reasonably related to the provision of health care services or instruction that the health care provider is legally authorized to provide under the law in the state in which such health care services or instruction are provided;</P> <P>(5) The requested service or services will not be sold, resold or transferred in consideration of money or any other thing of value;</P> <P>(6) If the service or services are being purchased as part of an aggregated purchase with other entities or individuals, the full details of any such arrangement, including the identities of all co-purchasers and the portion of the service or services being purchased by the health care provider; and</P> <P>(7) The requester is selecting the most cost-effective method of providing the requested service or services, where the most cost-effective method of providing a service is defined as the method that costs the least after consideration of the features, quality of transmission, reliability, and other factors that the health care provider deems relevant to choosing a method of providing the required health care services.</P> <P>(d) <E T="03">Annual renewal.</E> The certification set forth in paragraph (c) of this section shall be renewed annually.</P> </SECTION> <SECTION> <PRTPAGE P="126"/> <SECTNO>§ 54.617</SECTNO> <SUBJECT> Resale.</SUBJECT> <P>(a) <E T="03">Prohibition on resale.</E> Services purchased pursuant to universal service support mechanisms under this subpart shall not be sold, resold, or transferred in consideration for money or any other thing of value.</P> <P>(b) <E T="03">Permissible fees.</E> The prohibition on resale set forth in paragraph (a) of this section shall not prohibit a health care provider from charging normal fees for health care services, including instruction related to such services rendered via telecommunications services purchased under this subpart.</P> </SECTION> <SECTION> <SECTNO>§ 54.619</SECTNO> <SUBJECT> Audit program.</SUBJECT> <P>(a) <E T="03">Recordkeeping requirements.</E> Health care providers shall maintain for their purchases of services supported under this subpart the same kind of procurement records that they maintain for other purchases.</P> <P>(b) <E T="03">Production of records.</E> Health care providers shall produce such records at the request of any auditor appointed by the Administrator or any other state or federal agency with jurisdiction.</P> <P>(c) <E T="03">Random audits.</E> Health care providers shall be subject to random compliance audits to ensure that requesters are complying with the certification requirements set forth in § 54.615(c) and are otherwise eligible to receive universal service support and that rates charged comply with the statute and regulations.</P> <P>(d) <E T="03">Annual report.</E> The Administrator shall use the information obtained under paragraph (a) of this section to evaluate the effects of the regulations adopted in this subpart and shall report its findings to the Commission on the first business day in May of each year.</P> <CITA>[62 FR 32948, June 17, 1997, as amended at 63 FR 2132, Jan. 13, 1998; 63 FR 70572, Dec. 21, 1998]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.621</SECTNO> <SUBJECT>Access to advanced telecommunications and information services.</SUBJECT> <P>Each eligible health care provider that cannot obtain toll-free access to an Internet service provider shall be entitled to receive the lesser of the toll charges incurred for 30 hours of access per month to an Internet service provider or $180 per month in toll charge credits for toll charges imposed for connecting to an Internet service provider.</P> <CITA>[64 FR 62123, Nov. 16, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.623</SECTNO> <SUBJECT>Cap.</SUBJECT> <P>(a) <E T="03">Amount of the annual cap.</E> The annual cap on federal universal service support for health care providers shall be $400 million per funding year, with the following exceptions. No more than $3 million shall be collected or spent per quarter for the third and fourth quarters of 1999 and the first and second quarters of 2000 for the rural health care universal service support mechanism. No more than $12 million shall be committed or disbursed during the twelve month period from July 1, 1999 through June 30, 2000.</P> <P>(b) <E T="03">Funding year.</E> A funding year for purposes of the health care providers cap shall be the period July 1 through June 30. For the initiation of the mechanism only, the eighteen month period from January 1, 1998 to June 30, 1999 shall be considered a funding year. Eligible health care providers filing applications within the initial 75-day filing window shall receive funding for requested services through June 30, 1999.</P> <P>(c) <E T="03">Requests.</E> Funds shall be available as follows:</P> <P>(1) Generally, funds shall be available to eligible health care providers on a first-come-first-served basis, with requests accepted beginning on the first of January prior to each funding year.</P> <P>(2) For the initial funding year, the Administrator shall implement an initial filing period that treats all health care providers filing within that period as if they were simultaneously received. The initial filing period shall begin on the date that the Administrator begins to receive applications for support, and shall conclude on a date to be determined by the Administrator.</P> <P>(3) For the second funding year, which will begin on July 1, 1999, the Administrator shall implement a filing period that treats all health care providers filing within that period as if they were simultaneously received. The initial filing period shall begin on the date that the Administrator begins to receive applications for support, and <PRTPAGE P="127"/>shall conclude on a date to be determined by the Administrator.</P> <P>(4) The Administrator may implement such additional filing periods as it deems necessary.</P> <P>(d) <E T="03">Annual filing requirement.</E> Health care providers shall file new funding requests for each funding year.</P> <P>(e) <E T="03">Long term contracts.</E> If health care providers enter into long term contracts for eligible services, the Administrator shall only commit funds to cover the portion of such a long term contract scheduled to be delivered during the funding year for which universal service support is sought.</P> <P>(f) <E T="03">Pro-rata reductions.</E> Administrator shall act in accordance with this paragraph when a filing period described in paragraph (c) of this section is in effect. When a filing period described in paragraph (c) of this section closes, Administrator shall calculate the total demand for support submitted by all applicants during the filing window. If the total demand exceeds the total support available for the funding year, Administrator shall take the following steps:</P> <P>(1) Administrator shall divide the total funds available for the funding year by the total amount of support requested to produce a pro-rata factor.</P> <P>(2) Administrator shall calculate the amount of support requested by each applicant that has filed during the filing window.</P> <P>(3) Administrator shall multiply the pro-rata factor by the total dollar amount requested by each applicant. Administrator shall then commit funds to each applicant consistent with this calculation.</P> <CITA>[62 FR 32948, June 17, 1997, as amended at 62 FR 56120, Oct. 29, 1997; 63 FR 2132, Jan. 13, 1998; 63 FR 3832, Jan. 27, 1998; 63 FR 43097, Aug. 12, 1998; 63 FR 70572, Dec. 21, 1998; 64 FR 2594, Jan. 15, 1999; 64 FR 30442, June 8, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.625</SECTNO> <SUBJECT>Support for services beyond the maximum supported distance for rural health care providers.</SUBJECT> <P>(a) The maximum support distance is the distance from the health care provider to the farthest point on the boundary of the nearest large city, as calculated by the Administrator.</P> <P>(b) An eligible rural health care provider may purchase an eligible telecommunications service, as defined in § 54.601(c)(1) through (c)(2), that is provided over a distance that exceeds the maximum supported distance.</P> <P>(c) If an eligible rural health care provider purchases an eligible telecommunications service, as defined in § 54.601(c)(1) through (c)(2), that exceeds the maximum supported distance, the health care provider must pay the applicable rural rate for the distance that such service is carried beyond the maximum supported distance.</P> <CITA>[63 FR 2132, Jan. 13, 1998, as amended at 63 FR 70572, Dec. 21, 1998]</CITA> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart H—Administration</HD> <SECTION> <SECTNO>§ 54.701</SECTNO> <SUBJECT>Administrator of universal service support mechanisms.</SUBJECT> <P>(a) The Universal Service Administrative Company is appointed the permanent Administrator of the federal universal service support mechanisms, subject to a review after one year by the Federal Communications Commission to determine that the Administrator is administering the universal service support mechanisms in an efficient, effective, and competitively neutral manner.</P> <P>(b) The Schools and Libraries Corporation and the Rural Health Care Corporation shall merge into the Universal Service Administrative Company by January 1, 1999; provided, however, that the merger shall not take place until the Common Carrier Bureau, acting pursuant to delegated authority, has approved the merger documents, the amended by-laws, and the amended articles of incorporation, as set forth in paragraphs (c) and (d) of this section.</P> <P>(c) By December 1, 1998, the Schools and Libraries Corporation, the Rural Health Care Corporation and the Universal Service Administrative Company shall file with the Federal Communications Commission draft copies of all documents necessary to effectuate the merger.</P> <P>(d) By December 1, 1998, the Universal Service Administrative Company shall file with the Federal Communications Commission draft copies of amended by-laws and amended articles of incorporation.<PRTPAGE P="128"/> </P> <P>(e) Upon consummation of the merger of the Schools and Libraries Corporation and the Rural Health Care Corporation into the Universal Service Administrative Company, the Schools and Libraries Corporation and the Rural Health Care Corporation shall take all steps necessary to dissolve such corporations.</P> <P>(f) The Administrator shall establish a nineteen (19) member Board of Directors, as set forth in § 54.703. The Administrator's Board of Directors shall establish three Committees of the Board of Directors, as set forth in § 54.705: (1) the Schools and Libraries Committee, which shall oversee the schools and libraries support mechanism; (2) the Rural Health Care Committee, which shall oversee the rural health care support mechanism; and (3) the High Cost and Low Income Committee, which shall oversee the high cost and low income support mechanism. The Board of Directors shall not modify substantially the power or authority of the Committees of the Board without prior approval from the Federal Communications Commission.</P> <P>(g)(1) The Administrator shall establish three divisions:</P> <P>(i) The Schools and Libraries Division, which shall perform duties and functions in connection with the schools and libraries support mechanism under the direction of the Schools and Libraries Committee of the Board, as set forth in § 54.705(a);</P> <P>(ii) The Rural Health Care Division, which shall perform duties and functions in connection with the rural health care support mechanism under the direction of the Rural Health Care Committee of the Board, as set forth in § 54.705(b); and</P> <P>(iii) The High Cost and Low Income Division, which shall perform duties and functions in connection with the high cost and low income support mechanism, and the interstate access universal service support mechanism described in subpart J of this part, under the direction of the High Cost and Low Income Committee of the Board, as set forth in § 54.705(c).</P> <P>(2) As directed by the Committees of the Board set forth in § 54.705, these divisions shall perform the duties and functions unique to their respective support mechanisms.</P> <P>(h) The Administrator shall be managed by a Chief Executive Officer, as set forth in § 54.704. The Chief Executive Officer shall serve on the Committees of the Board established in § 54.705.</P> <CITA>[63 FR 70572, Dec. 21, 1998, as amended at 65 FR 38689, June 21, 2000; 65 FR 57739, Sept. 26, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.702</SECTNO> <SUBJECT>Administrator's functions and responsibilities.</SUBJECT> <P>(a) The Administrator, and the divisions therein, shall be responsible for administering the schools and libraries support mechanism, the rural health care support mechanism, the high cost support mechanism, the low income support mechanism, and the interstate access universal service support mechanism described in subpart J of this part.</P> <P>(b ) The Administrator shall be responsible for billing contributors, collecting contributions to the universal service support mechanisms, and disbursing universal service support funds.</P> <P>(c) The Administrator may not make policy, interpret unclear provisions of the statute or rules, or interpret the intent of Congress. Where the Act or the Commission's rules are unclear, or do not address a particular situation, the Administrator shall seek guidance from the Commission.</P> <P>(d) The Administrator may advocate positions before the Commission and its staff only on administrative matters relating to the universal service support mechanisms.</P> <P>(e) The Administrator shall maintain books of account separate from those of the National Exchange Carrier Association, of which the Administrator is an independent subsidiary. The Administrator's books of account shall be maintained in accordance with generally accepted accounting principles. The Administrator may borrow start up funds from the National Exchange Carrier Association. Such funds may not be drawn from the Telecommunications Relay Services (TRS) fund or TRS administrative expense accounts.</P> <P>(f) Pursuant to its responsibility for billing and collecting contributions, <PRTPAGE P="129"/>the Administrator shall compare periodically information collected by the administrator of the TRS Fund from TRS Fund Worksheets with information submitted by contributors on Universal Service Worksheets to verify the accuracy of information submitted on Universal Service Worksheets. When performing a comparison of contributor information as provided by this paragraph, the Administrator must undertake company-by-company comparisons for all entities filing Universal Service and TRS Fund Worksheets.</P> <P>(g) The Administrator shall create and maintain a website, as defined in § 54.5, on which applications for services will be posted on behalf of schools, libraries and rural health care providers.</P> <P>(h) The Administrator shall file with the Commission and Congress an annual report by March 31 of each year. The report shall detail the Administrator's operations, activities, and accomplishments for the prior year, including information about participation in each of the universal service support mechanisms and administrative action intended to prevent waste, fraud, and abuse. The report also shall include an assessment of subcontractors’ performance, and an itemization of monthly administrative costs that shall include all expenses, receipts, and payments associated with the administration of the universal service support programs. The Administrator shall consult each year with Commission staff to determine the scope and content of the annual report.</P> <P>(i) The Administrator shall report quarterly to the Commission on the disbursement of universal service support program funds. The Administrator shall keep separate accounts for the amounts of money collected and disbursed for eligible schools and libraries, rural health care providers, low-income consumers, interstate access universal service support, and high-cost and insular areas.</P> <P>(j) Information based on the Administrator's reports will be made public by the Commission at least once a year as part of a Monitoring Report.</P> <P>(k) The Administrator shall provide the Commission full access to the data collected pursuant to the administration of the universal service support programs.</P> <P>(l) Pursuant to § 64.903 of this chapter, the Administrator shall file with the Commission a cost allocation manual (CAM) that describes the accounts and procedures the Administrator will use to allocate the shared costs of administering the universal service support mechanisms and its other operations.</P> <P>(m) The Administrator shall make available to whomever the Commission directs, free of charge, any and all intellectual property, including, but not limited to, all records and information generated by or resulting from its role in administering the support mechanisms, if its participation in administering the universal service support mechanisms ends.</P> <P>(n) If its participation in administering the universal service support mechanisms ends, the Administrator shall be subject to close-out audits at the end of its term.</P> <CITA>[63 FR 70573, Dec. 21, 1998, as amended at 65 FR 38690, June 21, 2000; 65 FR 57739, Sept. 26, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.703</SECTNO> <SUBJECT>The Administrator's Board of Directors.</SUBJECT> <P>(a) The Administrator shall have a Board of Directors separate from the Board of Directors of the National Exchange Carrier Association. The National Exchange Carrier Association's Board of Directors shall be prohibited from participating in the functions of the Administrator.</P> <P>(b) <E T="03">Board composition</E>. The independent subsidiary's Board of Directors shall consist of nineteen (19) directors:</P> <P>(1) Three directors shall represent incumbent local exchange carriers, with one director representing the Bell Operating Companies and GTE, one director representing ILECs (other than the Bell Operating Companies) with annual operating revenues in excess of $40 million, and one director representing ILECs (other than the Bell Operating Companies) with annual operating revenues of $40 million or less;</P> <P>(2) Two directors shall represent interexchange carriers, with one director representing interexchange carriers <PRTPAGE P="130"/>with more than $3 billion in annual operating revenues and one director representing interexchange carriers with annual operating revenues of $3 billion or less;</P> <P>(3) One director shall represent commercial mobile radio service (CMRS) providers;</P> <P>(4) One director shall represent competitive local exchange carriers;</P> <P>(5) One director shall represent cable operators;</P> <P>(6) One director shall represent information service providers;</P> <P>(7) Three directors shall represent schools that are eligible to receive discounts pursuant to § 54.501;</P> <P>(8) One director shall represent libraries that are eligible to receive discounts pursuant to § 54.501;</P> <P>(9) Two directors shall represent rural health care providers that are eligible to receive supported services pursuant to § 54.601;</P> <P>(10) One director shall represent low-income consumers;</P> <P>(11) One director shall represent state telecommunications regulators;</P> <P>(12) One director shall represent state consumer advocates; and</P> <P>(13) The Chief Executive Officer of the Administrator.</P> <P>(c) <E T="03">Selection process for board of directors</E>. (1) Sixty (60) days prior to the expiration of a director's term, the industry or non-industry group that is represented by such director on the Administrator's Board of Directors, as specified in paragraph (b) of this section, shall nominate by consensus a new director. The industry or non-industry group shall submit the name of its nominee for a seat on the Administrator's Board of Directors, along with relevant professional and biographical information about the nominee, to the Chairman of the Federal Communications Commission. Only members of the industry or non-industry group that a Board member will represent may submit a nomination for that position.</P> <P>(2) The name of an industry or non-industry group's nominee shall be filed with the Office of the Secretary of the Federal Communications Commission in accordance with part 1 of this chapter. The document nominating a candidate shall be captioned “In the matter of: Nomination for Universal Service Administrator's Board of Directors” and shall reference FCC Docket Nos. 97-21 and 96-45. Each nomination shall specify the position on the Board of Directors for which such nomination is submitted. Two copies of the document nominating a candidate shall be submitted to the Common Carrier Bureau's Accounting Policy Division.</P> <P>(3) The Chairman of the Federal Communications Commission shall review the nominations submitted by industry and non-industry groups and select each director of the Administrator's Board of Directors, as each director's term expires pursuant to paragraph (d) of this section. If an industry or non-industry group does not reach consensus on a nominee or fails to submit a nomination for a position on the Administrator's Board of Directors, the Chairman of the Federal Communications Commission shall select an individual to represent such group on the Administrator's Board of Directors.</P> <P>(d) <E T="03">Board member terms</E>. The directors on the Administrator's Board shall be appointed for three-year terms, except that the Chief Executive Officer shall be a permanent member of the Board. Board member terms shall run from January 1 of the first year of the term to December 31 of the third year of the term, except that, for purposes of the term beginning on January 1, 1999, the terms of six directors shall expire on December 31, 2000, the terms of another six directors on December 31, 2001, and the terms of the remaining six directors on December 31, 2002. Directors may be reappointed for subsequent terms pursuant to the initial nomination and appointment process described in paragraph (c) of this section. If a Board member vacates his or her seat prior to the completion of his or her term, the Administrator will notify the Common Carrier Bureau of such vacancy, and a successor will be chosen pursuant to the nomination and appointment process described in paragraph (c) of this section.</P> <P>(e) All meetings of the Administrator's Board of Directors shall be open to the public and held in Washington, D.C.<PRTPAGE P="131"/> </P> <P>(f) Each member of the Administrator's Board of Directors shall be entitled to receive reimbursement for expenses directly incurred as a result of his or her participation on the Administrator's Board of Directors.</P> <CITA>[63 FR 70573, Dec. 21, 1998]</CITA> <EFFDNOT> <HD SOURCE="HED">Effective Date Note:</HD> <P>At 63 FR 70573, Dec. 21, 1998, § 54.703 was revised. Paragraph (c) contains modified information collection requirements and will not become effective until approved by the Office of Management and Budget.</P> </EFFDNOT> </SECTION> <SECTION> <SECTNO>§ 54.704</SECTNO> <SUBJECT>The Administrator's Chief Executive Officer.</SUBJECT> <P>(a) <E T="03">Chief Executive Officer's functions</E>. (1) The Chief Executive Officer shall have management responsibility for the administration of the federal universal service support mechanisms.</P> <P>(2) The Chief Executive Officer shall have management responsibility for all employees of the Universal Service Administrative Company. The Chief Executive Officer may delegate such responsibility to heads of the divisions established in § 54.701(g).</P> <P>(3) The Chief Executive Officer shall serve on the Administrator's Board of Directors as set forth in § 54.703(b) and on the Committees of the Board established under § 54.705.</P> <P>(b) <E T="03">Selection process for the Chief Executive Officer</E>. (1) The members of the Board of Directors of the Administrator shall nominate by consensus a Chief Executive Officer. The Board of Directors shall submit the name of its nominee for Chief Executive Officer, along with relevant professional and biographical information about the nominee, to the Chairman of the Federal Communications Commission.</P> <P>(2) The Chairman of the Federal Communications Commission shall review the nomination submitted by the Administrator's Board of Directors. Subject to the Chairman's approval, the nominee shall be appointed as the Administrator's Chief Executive Officer.</P> <P>(3) If the Board of Directors does not reach consensus on a nominee or fails to submit a nomination for the Chief Executive Officer, the Chairman of the Federal Communications Commission shall select a Chief Executive Officer.</P> <CITA>[63 FR 70574, Dec. 21, 1998]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.705</SECTNO> <SUBJECT>Committees of the Administrator's Board of Directors.</SUBJECT> <P>(a) <E T="03">Schools and Libraries Committee</E>.—(1) <E T="03">Committee functions</E>. The Schools and Libraries Committee shall oversee the administration of the schools and libraries support mechanism by the Schools and Libraries Division. The Schools and Libraries Committee shall have the authority to make decisions concerning:</P> <P>(i) How the Administrator projects demand for the schools and libraries support mechanism;</P> <P>(ii) Development of applications and associated instructions as needed for the schools and libraries support mechanism;</P> <P>(iii) Administration of the application process, including activities to ensure compliance with Federal Communications Commission rules and regulations;</P> <P>(iv) Performance of outreach and education functions;</P> <P>(v) Review of bills for services that are submitted by schools and libraries;</P> <P>(vi) Monitoring demand for the purpose of determining when the $2 billion trigger has been reached;</P> <P>(vii) Implementation of the rules of priority in accordance with § 54.507(g) of this chapter;</P> <P>(viii) Review and certification of technology plans when a state agency has indicated that it will not be able to review such plans within a reasonable time;</P> <P>(ix) The classification of schools and libraries as urban or rural and the use of the discount matrix established in § 54.505(c) of this chapter to set the discount rate to be applied to services purchased by eligible schools and libraries;</P> <P>(x) Performance of audits of beneficiaries under the schools and libraries support mechanism; and</P> <P>(xi) Development and implementation of other functions unique to the schools and libraries support mechanism.</P> <P>(2) <E T="03">Committee composition</E>. The Schools and Libraries Committee shall consist of the following members of the Administrator's Board of Directors:</P> <P>(i) Three school representatives;</P> <P>(ii) One library representative;<PRTPAGE P="132"/> </P> <P>(iii) One service provider representative;</P> <P>(iv) One at-large representative elected by the Administrator's Board of Directors; and</P> <P>(v) The Administrator's Chief Executive Officer.</P> <P>(b) <E T="03">Rural Health Care Committee</E>.—(1) <E T="03">Committee functions</E>. The Rural Health Care Committee shall oversee the administration of the rural health care support mechanism by the Rural Health Care Division. The Rural Health Care Committee shall have authority to make decisions concerning:</P> <P>(i) How the Administrator projects demand for the rural health care support mechanism;</P> <P>(ii) Development of applications and associated instructions as needed for the rural health care support mechanism;</P> <P>(iii) Administration of the application process, including activities to ensure compliance with Federal Communications Commission rules and regulations;</P> <P>(iv) Calculation of support levels under § 54.609;</P> <P>(v) Performance of outreach and education functions;</P> <P>(vi) Review of bills for services that are submitted by rural health care providers;</P> <P>(vii) Monitoring demand for the purpose of determining when the $400 million cap has been reached;</P> <P>(viii) Performance of audits of beneficiaries under the rural health care support mechanism; and</P> <P>(ix) Development and implementation of other functions unique to the rural health care support mechanism.</P> <P>(2) <E T="03">Committee composition</E>. The Rural Health Care Committee shall consist of the following members of the Administrator's Board of Directors:</P> <P>(i) Two rural health care representatives;</P> <P>(ii) One service provider representative;</P> <P>(iii) Two at-large representatives elected by the Administrator's Board of Directors;</P> <P>(iv) One State telecommunications regulator, one state consumer advocate; and</P> <P>(v) The Administrator's Chief Executive Officer.</P> <P>(c) <E T="03">High Cost and Low Income Committee</E>—(1) <E T="03">Committee functions. </E>The High Cost and Low Income Committee shall oversee the administration of the high cost and low income support mechanisms and the interstate access universal service support mechanism described in subpart J of this Part, by the High Cost and Low Income Division. The High Cost and Low Income Committee shall have the authority to make decisions concerning:</P> <P>(i) How the Administrator projects demand for the high cost, low income, and interstate access universal service support mechanisms;</P> <P>(ii) Development of applications and associated instructions as needed for the high cost, low income, and interstate access universal service support mechanisms;</P> <P>(iii) Administration of the application process, including activities to ensure compliance with Federal Communications Commission rules and regulations;</P> <P>(iv) Performance of audits of beneficiaries under the high cost, low income, and interstate access universal service support mechanisms and;</P> <P>(v) Development and implementation of other functions unique to the high cost, low income, and interstate access universal service support mechanisms.</P> <P>(d) <E T="03">Binding Authority of Committees of the Board</E>.</P> <P>(1) Any action taken by the Committees of the Board established in paragraphs (a) through (c) of this section shall be binding on the Board of Directors of the Administrator, unless such action is presented for review to the Board by the Administrator's Chief Executive Officer and the Board disapproves of such action by a two-thirds vote of a quorum of directors, as defined in the Administrator's by-laws.</P> <P>(2) The budgets prepared by each Committee shall be subject to Board review as part of the Administrator's combined budget. The Board shall not modify the budgets prepared by the Committees of the Board unless such modification is approved by a two-thirds vote of a quorum of the Board, <PRTPAGE P="133"/>as defined in the Administrator's by-laws.</P> <CITA>[63 FR 70574, Dec. 21, 1998, as amended at 65 FR 38690, June 21, 2000; 65 FR 57739, Sept. 26, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.706</SECTNO> <SUBJECT>Contributions.</SUBJECT> <P>(a) Entities that provide interstate telecommunications to the public, or to such classes of users as to be effectively available to the public, for a fee will be considered telecommunications carriers providing interstate telecommunications services and must contribute to the universal service support programs. Interstate telecommunications include, but are not limited to:</P> <P>(1) Cellular telephone and paging services;</P> <P>(2) Mobile radio services;</P> <P>(3) Operator services;</P> <P>(4) Personal communications services (PCS);</P> <P>(5) Access to interexchange service;</P> <P>(6) Special access service;</P> <P>(7) WATS;</P> <P>(8) Toll-free service;</P> <P>(9) 900 service;</P> <P>(10) Message telephone service (MTS);</P> <P>(11) Private line service;</P> <P>(12) Telex;</P> <P>(13) Telegraph;</P> <P>(14) Video services;</P> <P>(15) Satellite service;</P> <P>(16) Resale of interstate services; and</P> <P>(17) Payphone services.</P> <P>(b) Except as provided in paragraph (c) of this section, every telecommunications carrier that provides interstate telecommunications services, every provider of interstate telecommunications that offers telecommunications for a fee on a non-common carrier basis, and every payphone provider that is an aggregator shall contribute to the federal universal service support mechanisms on the basis of its interstate and international end-user telecommunications revenues.</P> <P>(c) Any entity required to contribute to the federal universal service support mechanisms whose interstate end-user telecommunications revenues comprise less than 8 percent of its combined interstate and international end-user telecommunications revenues shall contribute to the federal universal service support mechanisms for high cost areas, low-income consumers, schools and libraries, and rural health care providers based only on such entity's interstate end-user telecommunications revenues. For purposes of this paragraph, an “entity” shall refer to the entity that is subject to the universal service reporting requirements in 47 CFR 54.711 and shall include all of that entity's affiliated providers of telecommunications services.</P> <P>(d) Entities providing open video systems (OVS), cable leased access, or direct broadcast satellite (DBS) services are not required to contribute on the basis of revenues derived from those services. The following entities will not be required to contribute to universal service: non-profit health care providers; broadcasters; systems integrators that derive less than five percent of their systems integration revenues from the resale of telecommunications.</P> <CITA>[63 FR 70575, Dec. 21, 1998, as amended at 64 FR 60358, Nov. 5, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.708</SECTNO> <SUBJECT>De minimis exemption.</SUBJECT> <P>If a contributor's contribution to universal service in any given year is less than $10,000 that contributor will not be required to submit a contribution or Telecommunications Reporting Worksheet for that year unless it is required to do so to by our rules governing Telecommunications Relay Service (47 CFR 64.601 <E T="03">et seq.</E> of this chapter), numbering administration (47 CFR 52.1 <E T="03">et seq.</E> of this chapter), or shared costs of local number portability (47 CFR 52.21 <E T="03">et seq.</E> of this chapter). If a contributor improperly claims exemption from the contribution requirement, it will subject to the criminal provisions of sections 220(d) and (e) of the Act regarding willful false submissions and will be required to pay the amounts withheld plus interest.</P> <CITA>[64 FR 41331, July 30, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.709</SECTNO> <SUBJECT>Computations of required contributions to universal service support mechanisms.</SUBJECT> <P>(a) Contributions to the universal service support mechanisms shall be <PRTPAGE P="134"/>based on contributors’ end-user telecommunications revenues and a contribution factor determined quarterly by the Commission.</P> <P>(1) For funding the federal universal service support mechanisms, the subject revenues will be contributors’ interstate and international revenues derived from domestic end users for telecommunications or telecommunications services.</P> <P>(2) The quarterly universal service contribution factor shall be determined by the Commission based on the ratio of total projected quarterly expenses of the universal service support mechanisms to total end-user interstate and international telecommunications revenues. The Commission shall approve the Administrator's quarterly projected costs of the universal service support mechanisms, taking into account demand for support and administrative expenses. The total subject revenues shall be compiled by the Administrator based on information contained in the Telecommunications Reporting Worksheets described in § 54.711(a).</P> <P>(3) Total projected expenses for the federal universal service support mechanisms for each quarter must be approved by the Commission before they are used to calculate the quarterly contribution factor and individual contributions. For each quarter, the Administrator must submit its projections of demand for the federal universal service support mechanisms for high-cost areas, low-income consumers, schools and libraries, and rural health care providers, respectively, and the basis for those projections, to the Commission and the Common Carrier Bureau at least sixty (60) calendar days prior to the start of that quarter. For each quarter, the Administrator must submit its projections of administrative expenses for the high-cost mechanism, the low-income mechanism, the schools and libraries mechanism and the rural health care mechanism and the basis for those projections to the Commission and the Common Carrier Bureau at least sixty (60) calendar days prior to the start of that quarter. Based on data submitted to the Administrator on the Telecommunications Reporting Worksheets, the Administrator must submit the total contribution base to the Common Carrier Bureau at least sixty (60) days before the start of each quarter. The projections of demand and administrative expenses and the contribution factor shall be announced by the Commission in a public notice and shall be made available on the Commission's website. The Commission reserves the right to set projections of demand and administrative expenses at amounts that the Commission determines will serve the public interest at any time within the fourteen-day period following release of the Commission's public notice. If the Commission takes no action within fourteen (14) days of the date of release of the public notice announcing the projections of demand and administrative expenses, the projections of demand and administrative expenses, and the contribution factor shall be deemed approved by the Commission. Except as provided in § 54.706(c), the Administrator shall apply the quarterly contribution factor, once approved by the Commission, to contributors’ interstate and international end-user telecommunications revenues to calculate the amount of individual contributions.</P> <P>(b) If the contributions received by the Administrator in a quarter exceed the amount of universal service support program contributions and administrative costs for that quarter, the excess payments will be carried forward to the following quarter. The contribution factors for the following quarter will take into consideration the projected costs of the support mechanisms for that quarter and the excess contributions carried over from the previous quarter.</P> <P>(c) If the contributions received by the Administrator in a quarter are inadequate to meet the amount of universal service support program payments and administrative costs for that quarter, the Administrator shall request authority from the Commission to borrow funds commercially, with such debt secured by future contributions. Subsequent contribution factors will take into consideration the projected costs of the support mechanisms and the additional costs associated with borrowing funds.<PRTPAGE P="135"/> </P> <P>(d) If a contributor fails to file a Telecommunications Reporting Worksheet by the date on which it is due, the Administrator shall bill that contributor based on whatever relevant data the Administrator has available, including, but not limited to, the number of lines presubscribed to the contributor and data from previous years, taking into consideration any estimated changes in such data.</P> <CITA>[62 FR 41305, Aug. 1, 1997, as amended at 62 FR 65038, Dec. 10, 1997; 63 FR 2132, Jan. 13, 1998; 63 FR 43098, Aug. 12, 1998; 63 FR 70576, Dec. 21, 1998; 64 FR 41331, July 30, 1999; 64 FR 60358, Nov. 5, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.711</SECTNO> <SUBJECT>Contributor reporting requirements.</SUBJECT> <P>(a) Contributions shall be calculated and filed in accordance with the Telecommunications Reporting Worksheet which shall be published in the <E T="04">Federal Register</E>. The Telecommunications Reporting Worksheet sets forth information that the contributor must submit to the Administrator on a semi-annual basis. The Commission shall announce by Public Notice published in the <E T="04">Federal Register</E> and on its website the manner of payment and dates by which payments must be made. An officer of the contributor must certify to the truth and accuracy of the Telecommunications Reporting Worksheet, and the Commission or the Administrator may verify any information contained in the Telecommunications Reporting Worksheet at the discretion of the Commission. Inaccurate or untruthful information contained in the Telecommunications Reporting Worksheet may lead to prosecution under the criminal provisions of Title 18 of the United States Code. The Administrator shall advise the Commission of any enforcement issues that arise and provide any suggested response.</P> <P>(b) The Commission shall have access to all data reported to the Administrator. Contributors may make requests for Commission nondisclosure of company-specific revenue information under § 0.459 of this chapter by so indicating on the Telecommunications Reporting Worksheet at the time that the subject data are submitted. The Commission shall make all decisions regarding nondisclosure of company-specific information. The Administrator shall keep confidential all data obtained from contributors, shall not use such data except for purposes of administering the universal service support programs, and shall not disclose such data in company-specific form unless directed to do so by the Commission. Subject to any restrictions imposed by the Chief of the Common Carrier Bureau, the Universal Service Administrator may share data obtained from contributors with the administrators of the North American Numbering Plan administration cost recovery (See 47 CFR 52.16 of this chapter), the local number portability cost recovery (See 47 CFR 52.32 of this chapter), and the TRS Fund (See 47 CFR 64.604(c)(4)(iii)(H) of this chapter). The Administrator shall keep confidential all data obtained from other administrators and shall not use such data except for purposes of administering the universal service support mechanisms.</P> <P>(c) The Bureau may waive, reduce, modify, or eliminate contributor reporting requirements that prove unnecessary and require additional reporting requirements that the Bureau deems necessary to the sound and efficient administration of the universal service support mechanisms.</P> <CITA>[64 FR 41332, July 30, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.713</SECTNO> <SUBJECT>Contributors' failure to report or to contribute.</SUBJECT> <P>A contributor that fails to file a Telecommunications Reporting Worksheet and subsequently is billed by the Administrator shall pay the amount for which it is billed. The Administrator may bill a contributor a separate assessment for reasonable costs incurred because of that contributor's filing of an untruthful or inaccurate Telecommunications Reporting Worksheet, failure to file the Telecommunications Reporting Worksheet, or late payment of contributions. Failure to file the Telecommunications Reporting Worksheet or to submit required quarterly contributions may subject the contributor to the enforcement provisions of the Act and any other applicable law. The Administrator shall advise the Commission of any enforcement <PRTPAGE P="136"/>issues that arise and provide any suggested response. Once a contributor complies with the Telecommunications Reporting Worksheet filing requirements, the Administrator may refund any overpayments made by the contributor, less any fees, interest, or costs.</P> <CITA>[64 FR 41332, July 30, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.715</SECTNO> <SUBJECT>Administrative expenses of the Administrator.</SUBJECT> <P>(a) The annual administrative expenses of the Administrator should be commensurate with the administrative expenses of programs of similar size, with the exception of the salary levels for officers and employees of the Administrator described in paragraph (b) of this section. The annual administrative expenses may include, but are not limited to, salaries of officers and operations personnel, the costs of borrowing funds, equipment costs, operating expenses, directors’ expenses, and costs associated with auditing contributors of support recipients.</P> <P>(b) All officers and employees of the Administrator may be compensated at an annual rate of pay, including any non-regular payments, bonuses, or other compensation, in an amount not to exceed the rate of basic pay in effect for Level I of the Executive Schedule under 5 U.S.C. 5312.</P> <P>(c) The Administrator shall submit to the Commission projected quarterly budgets at least sixty (60) days prior to the start of every quarter. The Commission must approve the projected quarterly budgets before the Administrator disburses funds under the federal universal service support mechanisms. The administrative expenses incurred by the Administrator in connection with the schools and libraries support mechanism, the rural health care support mechanism, the high cost support mechanism, the low income support mechanism, and the interstate access universal service support mechanism shall be deducted from the annual funding of each respective support mechanism. The expenses deducted from the annual funding for each support mechanism also shall include the Administrator's joint and common costs allocated to each support mechanism pursuant to the cost allocation manual filed by the Administrator under § 64.903 of this chapter.</P> <CITA>[63 FR 70576, Dec. 21, 1998, as amended at 65 FR 38690, June 21, 2000; 65 FR 57739, Sept. 26, 2000]]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.717</SECTNO> <SUBJECT>Audits of the Administrator.</SUBJECT> <P>The Administrator shall obtain and pay for an annual audit conducted by an independent auditor to examine its operations and books of account to determine, among other things, whether the Administrator is properly administering the universal service support mechanisms to prevent fraud, waste, and abuse:</P> <P>(a) Before selecting an independent auditor, the Administrator shall submit preliminary audit requirements, including the proposed scope of the audit and the extent of compliance and substantive testing, to the Common Carrier Bureau Audit Staff.</P> <P>(b) The Common Carrier Bureau Audit Staff shall review the preliminary audit requirements to determine whether they are adequate to meet the audit objectives. The Common Carrier Bureau Audit Staff shall prescribe modifications that shall be incorporated into the final audit requirements.</P> <P>(c) After the audit requirements have been approved by the Common Carrier Bureau Audit Staff, the Administrator shall engage within thirty (30) calendar days an independent auditor to conduct the annual audit required by this paragraph. In making its selection, the Administrator shall not engage any independent auditor who has been involved in designing any of the accounting or reporting systems under review in the audit.</P> <P>(d) The independent auditor selected by the Administrator to conduct the annual audit shall be instructed by the Administrator to develop a detailed audit program based on the final audit requirements and shall be instructed by the Administrator to submit the audit program to the Common Carrier Bureau Audit Staff. The Common Carrier Bureau Audit Staff shall review the audit program and make modifications, as needed, that shall be incorporated into the final audit program. During the course of the audit, the Common Carrier Bureau Audit Staff <PRTPAGE P="137"/>may direct the Administrator to direct the independent auditor to take any actions necessary to ensure compliance with the audit requirements.</P> <P>(e) During the course of the audit, the Administrator shall instruct the independent auditor to:</P> <P>(1) Inform the Common Carrier Bureau Audit Staff of any revisions to the final audit program or to the scope of the audit;</P> <P>(2) Notify the Common Carrier Bureau Audit Staff of any meetings with the Administrator in which audit findings are discussed; and</P> <P>(3) Submit to the Chief of the Common Carrier Bureau any accounting or rule interpretations necessary to complete the audit.</P> <P>(f) Within sixty (60) calendar days after the end of the audit period, but prior to discussing the audit findings with the Administrator, the independent auditor shall be instructed by the Administrator to submit a draft of the audit report to the Common Carrier Bureau Audit Staff.</P> <P>(g) The Common Carrier Bureau Audit Staff shall review the audit findings and audit workpapers and offer its recommendations concerning the conduct of the audit or the audit findings to the independent auditor. Exceptions of the Common Carrier Bureau Audit Staff to the findings and conclusions of the independent auditor that remain unresolved shall be included in the final audit report.</P> <P>(h) Within fifteen (15) calendar days after receiving the Common Carrier Bureau Audit Staff's recommendations and making any revisions to the audit report, the Administrator shall instruct the independent auditor to submit the audit report to the Administrator for its response to the audit findings. At this time the auditor also must send copies of its audit findings to the Common Carrier Bureau Audit Staff. The Administrator shall provide the independent auditor time to perform additional audit work recommended by the Common Carrier Bureau Audit Staff.</P> <P>(i) Within thirty (30) calendar days after receiving the audit report, the Administrator shall respond to the audit findings and send copies of its response to the Common Carrier Bureau Audit Staff. The Administrator shall instruct the independent auditor that any reply that the independent auditor wishes to make to the Administrator's responses shall be sent to the Common Carrier Bureau Audit Staff as well as the Administrator. The Administrator's response and the independent auditor's replies shall be included in the final audit report;</P> <P>(j) Within ten (10) calendar days after receiving the response of the Administrator, the independent auditor shall file with the Commission the final audit report.</P> <P>(k) Based on the final audit report, the Chief of the Common Carrier Bureau may take any action necessary to ensure that the universal service support mechanisms operate in a manner consistent with the requirements of this Part, as well as such other action as is deemed necessary and in the public interest.</P> <CITA>[63 FR 70576, Dec. 21, 1998]</CITA> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart I—Review of Decisions Issued by the Administrator</HD> <SECTION> <SECTNO>§ 54.719</SECTNO> <SUBJECT>Parties permitted to seek review of Administrator decisions.</SUBJECT> <P>(a) Any person aggrieved by an action taken by a division of the Administrator, as defined in § 54.701(g), may seek review from the appropriate Committee of the Board, as defined in § 54.705.</P> <P>(b) Any person aggrieved by an action taken by the Administrator pertaining to a billing, collection or disbursement matter that falls outside the jurisdiction of the Committees of the Board may seek review from the Board of Directors of the Administrator, as defined in § 54.703.</P> <P>(c) Any person aggrieved by an action taken by a division of the Administrator, as defined in § 54.701(g), a Committee of the Board of the Administrator, as defined in § 54.705, or the Board of Directors of the Administrator, as defined in § 54.703, may seek review from the Federal Communications Commission, as set forth in § 54.722.</P> <CITA>[63 FR 70577, Dec. 21, 1998]</CITA> </SECTION> <SECTION> <PRTPAGE P="138"/> <SECTNO>§ 54.720</SECTNO> <SUBJECT>Filing deadlines.</SUBJECT> <P>(a) An affected party requesting review of an Administrator decision by the Commission pursuant to § 54.719(c), shall file such request within thirty (30) days of the issuance of the decision by a division or Committee of the Board of the Administrator.</P> <P>(b) An affected party requesting review of a division decision by a Committee of the Board pursuant to § 54.719(a), shall file such request within thirty (30) days of issuance of the decision by the division.</P> <P>(c) An affected party requesting review by the Board of Directors pursuant to § 54.719(b) regarding a billing, collection, or disbursement matter that falls outside the jurisdiction of the Committees of the Board shall file such request within thirty (30) days of issuance of the Administrator's decision.</P> <P>(d) The filing of a request for review with a Committee of the Board under § 54.719(a) or with the full Board under § 54.703, shall toll the time period for seeking review from the Federal Communications Commission. Where the time for filing an appeal has been tolled, the party that filed the request for review from a Committee of the Board or the full Board shall have thirty (30) days from the date the Committee or the Board issues a decision to file an appeal with the Commission.</P> <P>(e) Parties shall adhere to the time periods for filing oppositions and replies set forth in 47 CFR 1.45.</P> <CITA>[63 FR 70577, Dec. 21, 1998]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.721</SECTNO> <SUBJECT>General filing requirements.</SUBJECT> <P>(a) Except as otherwise provided herein, a request for review of an Administrator decision by the Federal Communications Commission shall be filed with the Federal Communications Commission's Office of the Secretary in accordance with the general requirements set forth in part 1 of this chapter. The request for review shall be captioned “In the matter of: Request for Review by (name of party seeking review) of Decision of Universal Service Administrator” and shall reference FCC Docket Nos. 97-21 and 96-45.</P> <P>(b) A request for review pursuant to § 54.719(a) through (c) shall contain: (1) a statement setting forth the party's interest in the matter presented for review; (2) a full statement of relevant, material facts with supporting affidavits and documentation; (3) the question presented for review, with reference, where appropriate, to the relevant Federal Communications Commission rule, Commission order, or statutory provision; (4) a statement of the relief sought and the relevant statutory or regulatory provision pursuant to which such relief is sought.</P> <P>(c) A copy of a request for review that is submitted to the Federal Communications Commission shall be served on the Administrator consistent with the requirement for service of documents set forth in § 1.47 of this chapter.</P> <P>(d) If a request for review filed pursuant to § 54.720(a) through (c) alleges prohibitive conduct on the part of a third party, such request for review shall be served on the third party consistent with the requirement for service of documents set forth in § 1.47 of this chapter. The third party may file a response to the request for review. Any response filed by the third party shall adhere to the time period for filing replies set forth in § 1.45 of this chapter and the requirement for service of documents set forth in § 1.47 of this chapter.</P> <CITA>[63 FR 70578, Dec. 21, 1998]</CITA> <EFFDNOT> <HD SOURCE="HED">Effective Date Note:</HD> <P>At 63 FR 70578, Dec. 21, 1998, § 54.721 was added. The section contains modified information collection requirements and will not become effective until approved by the Office of Management and Budget.</P> </EFFDNOT> </SECTION> <SECTION> <SECTNO>§ 54.722</SECTNO> <SUBJECT>Review by the Common Carrier Bureau or the Commission.</SUBJECT> <P>(a) Requests for review of Administrator decisions that are submitted to the Federal Communications Commission shall be considered and acted upon by the Common Carrier; provided, however, that requests for review that raise novel questions of fact, law or policy shall be considered by the full Commission.<PRTPAGE P="139"/> </P> <P>(b) An affected party may seek review of a decision issued under delegated authority by the Common Carrier Bureau pursuant to the rules set forth in part 1 of this chapter.</P> <CITA>[63 FR 70578, Dec. 21, 1998]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.723</SECTNO> <SUBJECT>Standard of review.</SUBJECT> <P>(a) The Common Carrier Bureau shall conduct <E T="03">de novo</E> review of requests for review of decisions issued by the Administrator.</P> <P>(b) The Federal Communications Commission shall conduct <E T="03">de novo</E> review of requests for review of decisions by the Administrator that involve novel questions of fact, law, or policy; provided, however, that the Commission shall not conduct <E T="03">de novo</E> review of decisions issued by the Common Carrier Bureau under delegated authority.</P> <CITA>[63 FR 70578, Dec. 21, 1998]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.724</SECTNO> <SUBJECT>Time periods for Commission approval of Administrator decisions.</SUBJECT> <P>(a) The Common Carrier Bureau shall, within ninety (90) days, take action in response to a request for review of an Administrator decision that is properly before it. The Common Carrier Bureau may extend the time period for taking action on a request for review of an Administrator decision for a period of up to ninety days. The Commission may also, at any time, extend the time period for taking action on a request for review of an Administrator decision pending before the Common Carrier Bureau.</P> <P>(b) The Commission shall issue a written decision in response to a request for review of an Administrator decision that involves novel questions of fact, law or policy within ninety (90) days. The Commission may extend the time period for taking action on the request for review of an Administrator decision. The Common Carrier Bureau also may extend the time period for taking action on a request for review of an Administrator decision for a period of up to ninety days.</P> <CITA>[65 FR 12135, Mar. 8, 2000, as amended at 65 FR 34408, May 30, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.725</SECTNO> <SUBJECT>Universal service disbursements during pendency of a request for review and Administrator decision.</SUBJECT> <P>(a) When a party has sought review of an Administrator decision under § 54.719(a) through (c) in connection with the schools and libraries support mechanism or the rural health care support mechanism, the Administrator shall not reimburse a service provider for the provision of discounted services until a final decision has been issued either by the Administrator or by the Federal Communications Commission; provided, however, that the Administrator may disburse funds for any amount of support that is not the subject of an appeal.</P> <P>(b) When a party has sought review of an Administrator decision under § 54.719(a) through (c) in connection with the high cost and low income support mechanisms, the Administrator shall not disburse support to a service provider until a final decision has been issued either by the Administrator or by the Federal Communications Commission; provided, however, that the Administrator may disburse funds for any amount of support that is not the subject of an appeal.</P> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart J—Interstate Access Universal Service Support Mechanism</HD> <SECTION> <SECTNO>§ 54.800</SECTNO> <SUBJECT>Terms and definitions.</SUBJECT> <P>(a) <E T="03">Average Price Cap CMT Revenue Per Line Month in a Study Area</E> has the same meaning as that term is defined in § 61.3(d) of this chapter, except that it includes exogenous changes in effect prior to the effective date of a calculation made pursuant to § 54.808 and exogenous changes not yet effective related to the sale or acquisition of exchanges, but excludes any other exogenous changes or other changes made pursuant to § 61.45(i)(4) of this chapter that are not yet effective.</P> <P>(b) <E T="03">Base Period Lines.</E> For purposes of calculations pursuant to this subpart, Base Period Lines are the number of lines for a given study area or zone as of the end of the quarter ending 6 months prior to the effective date of a calculation pursuant to § 54.808.<PRTPAGE P="140"/> </P> <P>(c) <E T="03">Interstate Access Universal Service Support Benchmark</E> shall mean, for residential and single-line business lines, $7.00, and for multi-line business lines, $9.20.</P> <P>(d) <E T="03">Minimum Adjustment Amount (MAA)</E> is defined in § 54.806(f).</P> <P>(e) <E T="03">MAA Phase In Percentage</E> is:</P> <P>50% as of July 1, 2000,</P> <P>75% as of July 1, 2001,</P> <P>100% as of July 1, 2002.</P> <P>(f) <E T="03">Minimum Delta (MD)</E> is defined in § 54.806(d).</P> <P>(g) <E T="03">Minimum Support Requirement (MSR)</E> is defined in § 54.806(g).</P> <P>(h) <E T="03">Nationwide Total Above Benchmark Revenues</E> is defined in § 54.806(b).</P> <P>(i) <E T="03">Price Cap Local Exchange Carrier</E> is defined in § 61.3(aa) of this chapter.</P> <P>(j) <E T="03">Preliminary Minimum Access Universal Service Support for a Study Area</E> is the amount calculated pursuant to § 54.804.</P> <P>(k) <E T="03">Preliminary Study Area Universal Service Support (PSAUSS)</E> is defined in § 54.806(c).</P> <P>(l) <E T="03">Study Area Above Benchmark Revenues</E> is the sum of all Zone Above Benchmark Revenues for all zones in the study area.</P> <P>(m) <E T="03">Study Area Access Universal Service Support (SAAUS)</E> is defined in § 54.806 (i) and (j).</P> <P>(n) <E T="03">Total National Minimum Delta (TNMD)</E> is the nationwide sum of all study area Minimum Deltas.</P> <P>(o) <E T="03">Total National Minimum Support Requirement (TNMSR)</E> is the sum of the MSR for all price cap local exchange carrier area study areas.</P> <P>(p) <E T="03">Zone Above Benchmark Revenues</E> is defined in § 54.805(a)(2).</P> <P>(q) <E T="03">Zone Average Revenue per Line.</E> The amount calculated as follows: </P> <EXTRACT> <P>Zone Average Revenue Per Line = (25% * (Loop + Port)) + U (Uniform revenue per line adjustment) </P> <FP SOURCE="FP-2">Where:</FP> <FP SOURCE="FP-2">Loop = the price for unbundled loops in a UNE zone.</FP> <FP SOURCE="FP-2">Port = the price for switch ports in that UNE zone.</FP> <FP SOURCE="FP-2">U = [(Average Price Cap CMT Revenue per Line month in a study area * price cap local exchange carrier Base Period Lines) − (25% * <E T="8401">Σ</E> (price cap local exchange carrier Base Period Lines in a UNE Zone* ((Loop + Port ) for all zones)))] + price cap local exchange carrier Base Period Lines in a study area.</FP> </EXTRACT> <CITA>[65 FR 38690, June 21, 2000; 65 FR 57739, Sept. 26, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.801</SECTNO> <SUBJECT>General.</SUBJECT> <P>(a) The total amount of universal service support under this subpart, excluding administrative expenses, for areas served by price cap local exchange carriers as of June 30, 2000, is targeted to be $650 million per year, if no exchanges, other than those offered for sale prior to January 1, 2000, are sold to non-price-cap local exchange carriers or purchased from non-price cap local exchange carriers by price cap local exchange carriers.</P> <P>(b) In the event that all or a portion of a study area served by a price cap local exchange carrier is sold to an entity other than a price cap local exchange carrier, and the study area or portion thereof was not offered for sale prior to January 1, 2000, then the support that would otherwise be provided under this subpart, had such study area or portion thereof not been sold, will not be distributed or collected. Subsequent calculations will use the last reported data for the study area or portion thereof that was sold to determine the amount that will not be distributed or collected.</P> <P>(c) In the event that a price cap local exchange carrier acquires additional exchanges, from an entity other than a price cap local exchange carrier, that acquisition should be reported to the Administrator pursuant to § 54.802 and included in the determination of study area support pursuant to § 54.806 for the areas served by the acquiring price cap LEC, beginning with the next support recalculation pursuant to § 54.808.</P> <P>(d) In the event that a price cap local exchange carrier acquires additional exchanges from an entity that is also a price cap local exchange carrier, the acquiring price cap local exchange carrier will receive support under this subpart at the same level as the selling price cap local exchange carrier formerly received, and both carriers will adjust their line counts accordingly beginning with the next quarterly report to the Administrator. At the subsequent report to the Administrator for <PRTPAGE P="141"/>purposes of recalculating support as required by § 54.808, the acquiring and selling price cap local exchange carriers will reflect the acquired and sold lines, and will adjust the Average CMT Revenue per Line month for the affected study areas accordingly.</P> <P>(e) The Administrator for the fund created by this subpart shall be the Universal Service Administrative Company.</P> <CITA>[65 FR 38690, June 21, 2000; 65 FR 57739, Sept. 26, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.802</SECTNO> <SUBJECT>Obligations of local exchange carriers and the Administrator.</SUBJECT> <P>(a) Each Eligible Telecommunications Carrier that is providing service within an area served by a price cap local exchange carrier shall submit to the Administrator, on a quarterly basis on the last business day of March, June, September, and December of each year line count data showing the number of lines it serves for the period ending three months prior to the reporting date, within each price cap local exchange carrier study area disaggregated by UNE Zone if UNE Zones have been established within that study area, showing residential/single-line business and multi-line business line counts separately. For purposes of this report, and for purposes of computing support under this subpart, the aggregated residential/single-line business class lines reported include single and non-primary residential lines, single-line business lines, ISDN BRI and other related residential class lines. Similarly, the multi-line business class lines reported include multi-line business, centrex, ISDN PRI and other related business class lines assessed the End User Common Line charge pursuant to § 69.152 of this chapter. For purposes of this report and for purposes of computing support under this subpart, lines served using resale of the price cap local exchange carrier's service pursuant to section 251(c)(4) of the Communications Act of 1934, as amended, shall be considered lines served by the price cap local exchange carrier only and must be reported accordingly.</P> <P>(b) In addition to the information submitted pursuant to paragraph (a) of this section, each price cap local exchange carrier must submit to the Administrator, on June 30, 2000, October 15, 2000, and April 16, 2001 and annually thereafter or as determined by the Administrator according to § 54.808:</P> <P>(1)(i) Average Price Cap CMT Revenue per Line month in a study area for each of its study areas;</P> <P>(ii) The rates established for UNE Loops and UNE Line Ports, by zone in those study areas where UNE Zones have been established as of the date of filing; and</P> <P>(iii) Make available information sufficient to determine the boundaries of each UNE Zone within each of its study areas where such zones have been established;</P> <P>(2) Provided, however, that after the June 30, 2000 filing, if there have been no changes since its previous filing a company may submit a statement that there have been no changes in lieu of such information, and further provided that, for study areas in which UNE Zones have been newly established since the last filing pursuant to this paragraph, the price cap local exchange carrier shall also report the information required by paragraphs (b)(1)(ii) and (b)(1)(iii) of this section to the Administrator on July 15, 2000, or January 15, 2001, as required.</P> <P>(c) An eligible telecommunications carrier shall be eligible for support pursuant to this subpart only after it has filed all of the information required by paragraphs (a) through (c) of this section, where applicable. An eligible telecommunications carrier shall receive payment of support pursuant to this subpart only for such months the carrier is actually providing service to the end user. The Administrator shall ensure that there is periodic reconciliation of support payments.</P> <P>(d) Upon receiving the information required to be filed in paragraphs (a) and (b) of this section, the Administrator shall:</P> <P>(1) Perform the calculations described in §§ 54.804 through 54.807 of this subpart;</P> <P>(2) Publish the results of these calculations showing Interstate Access Universal Service Support Per Line available in each price cap local exchange carrier study area, by UNE Zone and customer class;<PRTPAGE P="142"/> </P> <P>(3) Collect the funds necessary to provide support pursuant to this subpart in accordance with subpart H;</P> <P>(4) Distribute support calculated pursuant to the rules contained in this subpart; and</P> <P>(5) Report quarterly to the Commission on the collection and distribution of funds under this subpart as described in § 54.701(g). Fund distribution reporting will be by state and by eligible telecommunications carrier within the state.</P> <CITA>[65 FR 38690, June 21, 2000; 65 FR 57739, 57740, Sept. 26, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.803</SECTNO> <SUBJECT>Universal service zones.</SUBJECT> <P>(a) The zones used for determining interstate access universal service support shall be the same zones that would be used for End User Common Line (EUCL) charge deaveraging as described in § 69.152(q)(2) of this chapter.</P> <P>(b) In a price cap study area where the price cap local exchange carrier has not established state-approved prices for UNE loops by zone, the Administrator shall develop an estimate of the local exchange carrier's Zone Above Benchmark Revenues for transitional purposes, in order to reserve a portion of the fund for that study area. This estimate will be included by the Administrator in the Nationwide Study Area Above Benchmark Revenues calculated pursuant to § 54.806.</P> <P>(1) For the purpose of developing this transitional estimate, the loop and port costs estimated by the FCC cost model, or other substitute method if no model is available, shall be used.</P> <P>(2) For the purpose of developing this transitional estimate, the administrator shall construct three zones. Wire centers within the study area will be grouped into these zones in such a way that each zone is assigned approximately one third of local exchange carrier base period lines in the study area, with the lowest cost wire centers assigned to Zone 1, the highest cost wire centers assigned to Zone 3, and the remainder to Zone 2.</P> <CITA>[65 FR 38690, June 21, 2000; 65 FR 57740, Sept. 26, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.804</SECTNO> <SUBJECT>Preliminary minimum access universal service support for a study area calculated by the Administrator.</SUBJECT> <P>(a) If Average Price Cap CMT Revenue per Line month is greater than $9.20 then: Preliminary Minimum Access Universal Service Support (for a study area) = Average Price Cap CMT Revenue per Line month in a study area * price cap local exchange carrier Base Period Lines * 12)−(($7.00 * price cap local exchange carrier Base Period Residential and Single-Line Business Lines * 12) + ($9.20 * price cap local exchange carrier Base Period Multi-line Business Lines * 12)).</P> <P>(b) If Average Price Cap CMT Revenue per Line month in a study area is greater than $7.00 but less than $9.20 then: Preliminary Minimum Access Universal Service Support (for a study area) = (Average Price Cap CMT Revenue per Line month in a study area—$7.00) * (price cap local exchange carrier Base Period Residential and Single-Line BusinessLines * 12).</P> <P>(c) If Average Price Cap CMT Revenue per Line month in a study area is less than $7.00 then the Preliminary Minimum Access Universal Service Support (for a study area) is zero.</P> <CITA>[65 FR 57740, Sept. 26, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.805</SECTNO> <SUBJECT>Zone and study area above benchmark revenues calculated by the Administrator.</SUBJECT> <P>(a) The following steps shall be performed by the Administrator to determine Zone Above Benchmark Revenues for each price cap local exchange carrier.</P> <P>(1) Calculate Zone Average Revenue Per Line.</P> <P>(2) Calculate Zone Above Benchmark Revenues. Zone Above Benchmark Revenues is the sum of Zone Above Benchmark Revenues for Residential and Single-Line Business Lines and Zone Above Benchmark Revenues for Multi-Line Business Lines. Zone Above Benchmark Revenues for Residential and Single-Line Business Lines is, within each zone, (Zone Average Revenue Per Line minus $7.00) multiplied by all eligible telecommunications carrier Base Period Residential and Single-Line Business Lines times 12. If negative, the Zone Above Benchmark <PRTPAGE P="143"/>Revenues for Residential and Single-Line Business Lines for the zone is zero. Zone Above Benchmark Revenues for Multi-line Business Lines is, within each zone, (Zone Average Revenue Per Line minus $9.20) multiplied by all eligible telecommunications carrier zone Base Period Multi-line Business Lines times 12. If negative, the Zone Above Benchmark Revenues for Multi-line Business Lines for the zone is zero.</P> <P>(b) Study Area Above Benchmark Revenues is the sum of Zone Above Benchmark Revenues for all zones in the study area.</P> <CITA>[65 FR 38690, June 21, 2000; 65 FR 57740, Sept. 26, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.806</SECTNO> <SUBJECT>Calculation by the Administrator of interstate access universal service support for areas served by price cap local exchange carriers.</SUBJECT> <P>(a) The Administrator, based on the calculations performed in §§ 54.804 and 54.805, shall calculate the Interstate Access Universal Service Support for areas served by price cap local exchange carriers according to the following methodology:</P> <P>(b) Calculate Nationwide Total Above Benchmark Revenues. Nationwide Total Above Benchmark Revenues is the sum of all Study Area Above Benchmark Revenues for all study areas served by local exchange carriers.</P> <P>(c) Calculate Preliminary Study Area Universal Service Support (PSAUSS).</P> <P>(1) If the Nationwide Total Above Benchmark Revenues is greater than $650 million, then the Preliminary Study Area Universal Service Support (PSAUSS) equals the Study Area Above Benchmark Revenues multiplied by the ratio of $650 million to Nationwide Total Above Benchmark Revenues (<E T="03">i.e.,</E> Preliminary Study Area Universal Service Support = Study Area Above Benchmark Revenues *($650 Million/Nationwide Total Above Benchmark Revenues)).</P> <P>(2) If the Nationwide Total Above Benchmark Revenues is not greater than $650 million, PSAUSS equals the Study Area Above Benchmark Revenues.</P> <P>(d) Calculate the Minimum Delta (MD) by study area. Within each study area the Minimum Delta will be equal to the Preliminary Minimum Access Universal Service Support less the PSAUSS, if the difference is greater than zero. If the difference is less than or equal to zero, the MD is equal to zero.</P> <P>(e) Calculate the Total National Minimum Delta (TNMD) by summing all study area Minimum Deltas nationwide.</P> <P>(f) Calculate the Minimum Adjustment Amount. (1) If the TNMD is greater than $75 million, then the Minimum Adjustment Amount (MAA) equals the MAA Phase In Percentage times the MD by study area times the ratio of $75 million to TNMD.</P> <P>(2) If the TNMD is less than $75 million, then the MAA equals the product of the MAA Phase In Percentage and the MD by study area.</P> <P>(g) Calculate the Minimum Support Requirement (MSR). The Minimum Support Requirement for a study area equals the PSAUSS plus the MAA.</P> <P>(h) Calculate the Total National Minimum Support Requirement (TNMSR), which equals the sum of the MSR for all study areas in which the Preliminary Minimum Access Universal Service Support is greater than or equal to the PSAUSS.</P> <P>(i) Calculate Study Area Access Universal Service Support (SAAUS) for a study area in which the price cap local exchange carrier has geographically deaveraged state-approved rates for UNE loops:</P> <P>(1) For study areas in which the Preliminary Minimum Access Universal Service Support is greater than PSAUSS, and within which the price cap local exchange carrier has established geographically deaveraged state-approved rates for UNE loops, the SAAUS for that study area is the MSR.</P> <P>(2) For study areas in which the Preliminary Minimum Access Universal Service Support is less than PSAUSS, and within which the price cap local exchange carrier has established geographically deaveraged state-approved rates for UNE loops, the SAAUS for that study area is equal to:</P> <P>PSAUSS * ($650 million − TNMSR) ÷ (the sum of PSAUSS of study areas where the Preliminary Minimum Access Universal Service Support is less than PSAUSS).<PRTPAGE P="144"/> </P> <P>(j) Calculate Study Area Access Universal Service Support (SAAUS) for a price cap local exchange carrier that has not established geographically deaveraged state-approved rates for UNE loops. In such study areas, the SAAUS shall be the lesser of the Preliminary Minimum Access Universal Service Support or:</P> <P>(1) For study areas in which the Preliminary Minimum Access Universal Service Support is greater than PSAUSS, and for which an estimate has been made for deaveraged UNE loop costs, the SAAUS for that study area is the MSR.</P> <P>(2) For study areas in which the Preliminary Minimum Access Universal Service Support is less than PSAUSS, and for which an estimate has been made for deaveraged UNE loop costs, the SAAUS for that study area is equal to:</P> <P>PSAUSS * ($650 million − TNMSR) ÷ (the sum of PSAUSS of study areas where the Preliminary Minimum Access Universal Service Support is less than PSAUSS).</P> <CITA>[65 FR 38690, June 21, 2000; 65 FR 57740, Sept. 26, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.807</SECTNO> <SUBJECT>Interstate access universal service support.</SUBJECT> <P>(a) Each Eligible Telecommunications Carrier (ETC) that provides supported service within the study area of a price cap local exchange carrier shall receive Interstate Access Universal Service Support for each line that it serves within that study area.</P> <P>(b) In any study area within which the price cap local exchange carrier has not established state approved geographically deaveraged rates for UNE loops, the Administrator shall calculate the Interstate Access Universal Service Support Per Line by dividing Study Area Access Universal Service Support by twelve times all eligible telecommunications carriers' base period lines in that study area adjusted for growth during the relevant support period based on the average nationwide annual growth in eligible lines during the three previous years. For the purpose of calculating growth, the Administrator shall use a simple average of annual growth rates for total switched access lines for the three most recent years as reported in the Common Carrier Bureau Report, Statistics of Communications Common Carriers, Table 6.10—Selected Operating Statistics. Interested parties may obtain this report from the U.S. Government Printing Office or by downloading it from the Federal Communication Commission's website http:// www.fcc.gov/ccb/stats.</P> <P>(c) In any study area within which the price cap local exchange carrier has established state approved geographically deaveraged rates for UNE loops, the Administrator shall calculate the Interstate Access Universal Service Support Per Line for each customer class and zone using all eligible telecommunications carriers' base period lines by customer class and zone adjusted for growth during the relevant support period based on the average nationwide annual growth in eligible lines during the three previous years. For the purpose of calculating growth, the Administrator shall use a simple average of annual growth rates for total switched access lines for the three most recent years as reported in the Common Carrier Bureau Report, Statistics of Communications Common Carriers, Table 6.10—Selected Operating Statistics. Support shall be allocated to lines in the highest cost UNE zone first, and will “cascade” to lines in lower cost UNE zones to the extent that sufficient funding is available. Beginning with the zone with the highest Zone Average Revenue Per Line, support will be applied in the following order of priority:</P> <P>(1) To all lines in the highest zone, to eliminate the amount per line by which Zone Average Revenue Per Line exceeds the higher of $9.20 or the Average Revenue Per Line in the next highest zone;</P> <P>(2) If the Zone Average Revenue Per Line in the next highest zone is greater than $9.20, then to all lines in both zones to eliminate the amount per line by which Zone Average Revenue per Line exceeds $9.20 or the Zone Average Revenue Per Line in the third highest zone. This application of support will continue to additional zones in the same fashion until the amount per line by which Zone Average Revenue Per Line exceeds $9.20 has been eliminated <PRTPAGE P="145"/>in all zones, or until the available support has been exhausted;</P> <P>(3) To all residential and single-line business lines in the highest zone, to eliminate the remaining amount per line that Zone Average Revenue Per Line for these lines exceeds the higher of $7.00 or Zone Average Revenue Per Line in the next highest zone;</P> <P>(4) If the Zone Average Revenue per Line in the next highest zone is greater than $7.00, then to all residential and single-line business lines in both zones to eliminate the remaining amount per line by which Zone Average Revenue Per Line exceeds $7.00. This application of support will continue to additional zones in the same fashion until the difference between Zone Average Revenue Per Line and $7.00 has been eliminated in all zones, or until the available support has been exhausted.</P> <P>(d) Notwithstanding the provisions of § 54.307(a)(2), the per-line support amount determined within each zone by applicable customer class under paragraph (b) or (c) of this section is portable among all eligible telecommunications carriers providing service within that zone.</P> <CITA>[65 FR 38690, June 21, 2000; 65 FR 57740, Sept. 26, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.808</SECTNO> <SUBJECT> Transition provisions and periodic calculation.</SUBJECT> <P>Study Area Access Universal Service Support amounts for the area served by each price cap local exchange carrier will be calculated as of July 1, 2000, January 1, 2001, July 1, 2001 and thereafter as determined by the Administrator, but at least annually.</P> <CITA>[65 FR 38690, June 21, 2000; 65 FR 57740, Sept. 26, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 54.809</SECTNO> <SUBJECT>Carrier certification.</SUBJECT> <P>(a) Certification. Carriers that desire to receive support pursuant to § 54.807 must file a certification with the Administrator and the Commission stating that all interstate access universal service support provided to such carrier will be used only for the provision, maintenance, and upgrading of facilities and services for which the support is intended. Support provided pursuant to § 54.807 shall only be provided to the extent that the carrier has filed the requisite certification pursuant to this section.</P> <P>(b) Certification format. A certification pursuant to this section may be filed in the form of a letter from an authorized representative for the carrier, and must be filed with both the Office of the Secretary of the Commission clearly referencing CC Docket No. 96-45, and with the Administrator of the interstate access universal service support mechanism, on or before the filing deadlines set forth in paragraph (c) of this section. All of the certifications filed by carriers pursuant to this section shall become part of the public record maintained by the Commission.</P> <P>(c) Filing deadlines. In order for a price cap local exchange carrier, and/or an eligible telecommunications carrier serving lines in the service area of a price cap local exchange carrier, to receive interstate access universal service support, such carrier must file an annual certification, as described in paragraph (b) of this section, on the date that it first files its line count information pursuant to § 54.802, and thereafter on June 30th of each year.</P> <CITA>[65 FR 38690, June 21, 2000; 65 FR 57740, Sept. 26, 2000]</CITA> <CITA>[64 FR 33788, June 24, 1999]</CITA> </SECTION> </SUBPART> </PART> <PART> <EAR>Pt. 59</EAR> <HD SOURCE="HED">PART 59—INFRASTRUCTURE SHARING</HD> <CONTENTS> <SECHD>Sec.</SECHD> <SECTNO>59.1</SECTNO> <SUBJECT>General duty.</SUBJECT> <SECTNO>59.2</SECTNO> <SUBJECT>Terms and conditions of infrastructure sharing.</SUBJECT> <SECTNO>59.3</SECTNO> <SUBJECT>Information concerning deployment of new services and equipment.</SUBJECT> <SECTNO>59.4</SECTNO> <SUBJECT>Definition of “qualifying carrier”.</SUBJECT> </CONTENTS> <AUTH> <HD SOURCE="HED">Authority:</HD> <P>47 U.S.C. 154(i), 154(j), 201-205, 259, 303(r), 403.</P> </AUTH> <SOURCE> <HD SOURCE="HED">Source:</HD> <P>62 FR 9713, Mar. 4, 1997, unless otherwise noted.</P> </SOURCE> <SECTION> <SECTNO>§ 59.1</SECTNO> <SUBJECT>General duty.</SUBJECT> <P>Incumbent local exchange carriers (as defined in 47 U.S.C. section 251(h)) shall make available to any qualifying carrier such public switched network infrastructure, technology, information, and telecommunications facilities and functions as may be requested by such qualifying carrier for the purpose of enabling such qualifying carrier to <PRTPAGE P="146"/>provide telecommunications services, or to provide access to information services, in the service area in which such qualifying carrier has obtained designation as an eligible telecommunications carrier under section 214(e) of 47 U.S.C.</P> </SECTION> <SECTION> <SECTNO>§ 59.2</SECTNO> <SUBJECT>Terms and conditions of infrastructure sharing.</SUBJECT> <P>(a) An incumbent local exchange carrier subject to the requirements of section 59.1 shall not be required to take any action that is economically unreasonable or that is contrary to the public interest.</P> <P>(b) An incumbent local exchange carrier subject to the requirements of section 59.1 may, but shall not be required to, enter into joint ownership or operation of public switched network infrastructure, technology, information and telecommunications facilities and functions and services with a qualifying carrier as a method of fulfilling its obligations under section 59.1.</P> <P>(c) An incumbent local exchange carrier subject to the requirements of section 59.1 shall not be treated by the Commission or any State as a common carrier for hire or as offering common carrier services with respect to any public switched network infrastructure, technology, information, or telecommunications facilities, or functions made available to a qualifying carrier in accordance with regulations issued pursuant to this section.</P> <P>(d) An incumbent local exchange carrier subject to the requirements of section 59.1 shall make such public switched network infrastructure, technology, information, and telecommunications facilities, or functions available to a qualifying carrier on just and reasonable terms and pursuant to conditions that permit such qualifying carrier to fully benefit from the economies of scale and scope of such local exchange carrier. An incumbent local exchange carrier that has entered into an infrastructure sharing agreement pursuant to section 59.1 must give notice to the qualifying carrier at least sixty days before terminating such infrastructure sharing agreement.</P> <P>(e) An incumbent local exchange carrier subject to the requirements of section 59.1 shall not be required to engage in any infrastructure sharing agreement for any services or access which are to be provided or offered to consumers by the qualifying carrier in such local exchange carrier's telephone exchange area.</P> <P>(f) An incumbent local exchange carrier subject to the requirements of section 59.1 shall file with the State, or, if the State has made no provision to accept such filings, with the Commission, for public inspection, any tariffs, contracts, or other arrangements showing the rates, terms, and conditions under which such carrier is making available public switched network infrastructure, technology, information and telecommunications facilities and functions pursuant to this part.</P> </SECTION> <SECTION> <SECTNO>§ 59.3</SECTNO> <SUBJECT>Information concerning deployment of new services and equipment.</SUBJECT> <P>An incumbent local exchange carrier subject to the requirements of section 59.1 that has entered into an infrastructure sharing agreement under section 59.1 shall provide to each party to such agreement timely information on the planned deployment of telecommunications services and equipment, including any software or upgrades of software integral to the use or operation of such telecommunications equipment.</P> </SECTION> <SECTION> <SECTNO>§ 59.4</SECTNO> <SUBJECT>Definition of “qualifying carrier”.</SUBJECT> <P>For purposes of this part, the term “qualifying carrier” means a telecommunications carrier that:</P> <P>(a) Lacks economies of scale or scope; and</P> <P>(b) Offers telephone exchange service, exchange access, and any other service that is included in universal service, to all consumers without preference throughout the service area for which such carrier has been designated as an eligible telecommunications carrier under section 214(e) of 47 U.S.C.</P> </SECTION> </PART> <PART> <EAR>Pt. 61</EAR> <HD SOURCE="HED">PART 61—TARIFFS</HD> <CONTENTS> <SUBPART> <HD SOURCE="HED">Subpart A—General</HD> <SECHD>Sec.</SECHD> <SECTNO>61.1</SECTNO> <SUBJECT>Purpose and application.</SUBJECT> <SECTNO>61.2</SECTNO> <SUBJECT>General tariff requirements.</SUBJECT> <SECTNO>61.3</SECTNO> <SUBJECT>Definitions.</SUBJECT> <SECTNO>61.11—12</SECTNO> <SUBJECT>[Reserved]</SUBJECT> </SUBPART> <SUBPART> <PRTPAGE P="147"/> <HD SOURCE="HED">Subpart B—Rules for Electronic Filing</HD> <SECTNO>61.13</SECTNO> <SUBJECT>Scope.</SUBJECT> <SECTNO>61.14</SECTNO> <SUBJECT>Method of filing publications.</SUBJECT> <SECTNO>61.15</SECTNO> <SUBJECT>Letters of transmittal and cover letters.</SUBJECT> <SECTNO>61.16</SECTNO> <SUBJECT>Base documents.</SUBJECT> <SECTNO>61.17</SECTNO> <SUBJECT>Method of filing applications for special permission.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart C—General Rules for Nondominant Carriers</HD> <SECTNO>61.18</SECTNO> <SUBJECT>Scope.</SUBJECT> <SECTNO>61.19</SECTNO> <SUBJECT>Detariffing of interstate, domestic, interexchange services.</SUBJECT> <SECTNO>61.20</SECTNO> <SUBJECT>Method of filing publications.</SUBJECT> <SECTNO>61.21</SECTNO> <SUBJECT>Cover letters.</SUBJECT> <SECTNO>61.22</SECTNO> <SUBJECT>Composition of tariffs.</SUBJECT> <SECTNO>61.23</SECTNO> <SUBJECT>Notice requirements.</SUBJECT> <SECTNO>61.25</SECTNO> <SUBJECT>References to other instruments.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart D—General Tariff Rules for International Dominant Carriers</HD> <SECTNO>61.28</SECTNO> <SUBJECT>International dominant carrier tariff filing requirements.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart E—General Rules for Dominant Carriers</HD> <SECTNO>61.31</SECTNO> <SUBJECT>Scope.</SUBJECT> <SECTNO>61.32</SECTNO> <SUBJECT>Method of filing publications.</SUBJECT> <SECTNO>61.33</SECTNO> <SUBJECT>Letters of transmittal.</SUBJECT> <SECTNO>61.38</SECTNO> <SUBJECT>Supporting information to be submitted with letters of transmittal.</SUBJECT> <SECTNO>61.39</SECTNO> <SUBJECT>Optional supporting information to be submitted with letters of transmittal for Access Tariff filings effective on or after April 1, 1989, by local exchange carriers serving 50,000 or fewer access lines in a given study area that are described as subset 3 carriers in § 69.602.</SUBJECT> <SECTNO>61.40</SECTNO> <SUBJECT>Private line rate structure guidelines.</SUBJECT> <SECTNO>61.41</SECTNO> <SUBJECT>Price cap requirements generally.</SUBJECT> <SECTNO>61.42</SECTNO> <SUBJECT>Price cap baskets and service categories.</SUBJECT> <SECTNO>61.43</SECTNO> <SUBJECT>Annual price cap filings required.</SUBJECT> <SECTNO>61.44</SECTNO> <SUBJECT>[Reserved]</SUBJECT> <SECTNO>61.45</SECTNO> <SUBJECT>Adjustments to the PCI for Local Exchange Carriers.</SUBJECT> <SECTNO>61.46</SECTNO> <SUBJECT>Adjustments to the API.</SUBJECT> <SECTNO>61.47</SECTNO> <SUBJECT>Adjustments to the SBI; pricing bands.</SUBJECT> <SECTNO>61.48</SECTNO> <SUBJECT>Transition rules for price cap formula calculations.</SUBJECT> <SECTNO>61.49</SECTNO> <SUBJECT>Supporting information to be submitted with letters of transmittal for tariffs of carriers subject to price cap regulation.</SUBJECT> <SECTNO>61.50-61.51</SECTNO> <SUBJECT>[Reserved]</SUBJECT> <SECTNO>61.52</SECTNO> <SUBJECT>Form, size, type, legibility, etc.</SUBJECT> <SECTNO>61.54</SECTNO> <SUBJECT>Composition of tariffs.</SUBJECT> <SECTNO>61.55</SECTNO> <SUBJECT>Contract-based tariffs.</SUBJECT> <SECTNO>61.58</SECTNO> <SUBJECT>Notice requirements.</SUBJECT> <SECTNO>61.59</SECTNO> <SUBJECT>Effective period required before changes.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart F—Specific Rules for Tariff Publications of Dominant and Nondominant Carriers</HD> <SECTNO>61.66</SECTNO> <SUBJECT>Scope.</SUBJECT> <SECTNO>61.68</SECTNO> <SUBJECT>Special notations.</SUBJECT> <SECTNO>61.69</SECTNO> <SUBJECT>Rejection.</SUBJECT> <SECTNO>61.72</SECTNO> <SUBJECT>Public information requirements.</SUBJECT> <SECTNO>61.73</SECTNO> <SUBJECT>Duplication of rates or regulations.</SUBJECT> <SECTNO>61.74</SECTNO> <SUBJECT>References to other instruments.</SUBJECT> <SECTNO>61.83</SECTNO> <SUBJECT>Consecutive numbering.</SUBJECT> <SECTNO>61.86</SECTNO> <SUBJECT>Supplements.</SUBJECT> <SECTNO>61.87</SECTNO> <SUBJECT>Cancellation of tariffs.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart G—Concurrences</HD> <SECTNO>61.131</SECTNO> <SUBJECT>Scope.</SUBJECT> <SECTNO>61.132</SECTNO> <SUBJECT>Method of filing concurrences.</SUBJECT> <SECTNO>61.133</SECTNO> <SUBJECT>Format of concurrences.</SUBJECT> <SECTNO>61.134</SECTNO> <SUBJECT>Concurrences for through services.</SUBJECT> <SECTNO>61.135</SECTNO> <SUBJECT>Concurrences for other purposes.</SUBJECT> <SECTNO>61.136</SECTNO> <SUBJECT>Revocation of concurrences.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart H—Applications for Special Permission</HD> <SECTNO>61.151</SECTNO> <SUBJECT>Scope.</SUBJECT> <SECTNO>61.152</SECTNO> <SUBJECT>Terms of applications and grants.</SUBJECT> <SECTNO>61.153</SECTNO> <SUBJECT>Method of filing applications.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart I—Adoption of Tariffs and Other Documents of Predecessor Carriers</HD> <SECTNO>61.171</SECTNO> <SUBJECT>Adoption notice.</SUBJECT> <SECTNO>61.172</SECTNO> <SUBJECT>Changes to be incorporated in tariffs of successor carrier.</SUBJECT> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart J—Suspensions</HD> <SECTNO>61.191</SECTNO> <SUBJECT>Carrier to file supplement when notified of suspension.</SUBJECT> <SECTNO>61.192</SECTNO> <SUBJECT>Contents of supplement announcing suspension.</SUBJECT> <SECTNO>61.193</SECTNO> <SUBJECT>Vacation of suspension order; supplements announcing same; etc.</SUBJECT> </SUBPART> </CONTENTS> <AUTH> <HD SOURCE="HED">Authority:</HD> <P>Secs. 1, 4(i), 4(j), 201-205 and 403 of the Communications Act of 1934, as amended; 47 U.S.C. 151, 154(i), 154(j), 201-205 and 403, unless otherwise noted.</P> </AUTH> <SOURCE> <HD SOURCE="HED">Source:</HD> <P>49 FR 40869, Oct. 18, 1984, unless otherwise noted.</P> </SOURCE> <SUBPART> <HD SOURCE="HED">Subpart A—General</HD> <SECTION> <SECTNO>§ 61.1</SECTNO> <SUBJECT>Purpose and application.</SUBJECT> <P>(a) The purpose of this part is to prescribe the framework for the initial establishment of and subsequent revisions to tariff publications.</P> <P>(b) Tariff publications filed with the Commission must conform to the rules in this part. Failure to comply with any provisions of this part may be <PRTPAGE P="148"/>grounds for rejection of the non-complying publication.</P> <P>(c) No carrier required to file tariffs may provide any interstate or foreign communication service until every tariff publication for such communication service is on file with the Commission and in effect.</P> </SECTION> <SECTION> <SECTNO>§ 61.2</SECTNO> <SUBJECT>General tariff requirements.</SUBJECT> <P>(a) In order to remove all doubt as to their proper application, all tariff publications must contain clear and explicit explanatory statements regarding the rates and regulations.</P> <P>(b) Tariff publications must be delivered to the Commission free from all charges, including claims of postage.</P> <P>(c) Tariff publications will not be returned.</P> <CITA>[64 FR 46586, Aug. 26, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.3</SECTNO> <SUBJECT>Definitions.</SUBJECT> <P>(a) <E T="03">Act.</E> The Communications Act of 1934 (48 Stat. 1004; 47 U.S.C. chapter 5), as amended.</P> <P>(b) <E T="03">Actual Price Index</E> (API). An index of the level of aggregate rate element rates in a basket, which index is calculated pursunt to § 61.46.</P> <P>(c) <E T="03">Association.</E> This term has the meaning given it in § 69.2(d).</P> <P>(d) <E T="03">Average Price Cap CMT Revenue per Line month.</E> (1) Price Cap CMT Revenue (as defined in § 61.3(cc)) per month as of July 1, 2000 (adjusted to remove Universal Service Contributions assessed to local exchange carriers pursuant to § 54.702 of this chapter) using 2000 annual filing base period demand, divided by the 2000 annual filing base period demand. In filing entities with multiple study areas, if it becomes necessary to calculate the Average Price Cap CMT Revenue per Line month for a specific study area, then the Average Price Cap CMT Revenue per Line month for that study area is determined as follows, using base period demand revenues (adjusted to remove Universal Service Contributions assessed to Local Exchange Carriers pursuant to § 54.702 of this chapter), Base Factor Portion (BFP) and 2000 annual filing base period lines:</P> <P>Average Price Cap CMT Revenue per Line Month in a study area = Price Cap CMT Revenue × (BFP in the study area ÷ (BFP in the Filing Entity) ÷(Lines in the study area.</P> <P>(2) Nothing in this definition precludes a price cap local exchange carrier from continuing to average rates across filing entities containing multiple study areas, where permitted under existing rules.</P> <P>(3) Average Price Cap CMT Revenues per Line month may be adjusted after July 1, 2000 to reflect exogenous costs pursuant to § 61.45(d).</P> <P>(4) Average Price Cap CMT Revenues per Line month may also be adjusted pursuant to § 61.45 (b)(1)(iii).</P> <P>(e) <E T="03">Average Traffic Sensitive Charge.</E> (1) The Average Traffic Sensitive Charge (ATS charge) is the sum of the following two components:</P> <P>(i) The Local Switching (LS) component. The LS component will be calculated by dividing the proposed LS revenues (End Office Switch, LS trunk ports, Information Surcharge, and signalling transfer point (STP) port) by the base period LS minutes of use (MOUs); and</P> <P>(ii) The Transport component. The Transport component will be calculated by dividing the proposed Transport revenues (Switched Direct Trunk Transport, Signalling for Switched Direct Trunk Transport, Entrance Facilities for Switched Access traffic, Tandem Switched Transport, Signalling for Tandem Switching and residual per minute Transport Interconnection Charge (TIC) pursuant to § 69.155 of this chapter) by price cap local exchange carrier only base period MOUs (including meet-point billing arrangements for jointly-provided interstate access by a price cap local exchange carrier and any other local exchange carrier).</P> <P>(2) For the purposes of determining whether the ATS charge has reached the Target Rate as set forth in § 61.3(qq), the calculations should include all the relevant revenues and minutes for services provided under generally available price cap tariffs.</P> <P>(f) <E T="03">Band.</E> A zone of pricing flexibility for a service category, which zone is calculated pursuant to § 61.47.</P> <P>(g) <E T="03">Base period.</E> For carriers subject to §§ 61.41 through 61.49, the 12-month period ending six months prior to the effective date of annual price cap tariffs. Base year or base period earnings <PRTPAGE P="149"/>shall exclude amounts associated with exogenous adjustments to the PCI for the lower formula adjustment mechanism permitted by § 61.45(d)(1)(vii).</P> <P>(h) <E T="03">Basket.</E> Any class or category of tariffed service or charge:</P> <P>(1) Which is established by the Commission pursuant to price cap regulation;</P> <P>(2) The rates of which are reflected in an Actual Price Index; and</P> <P>(3) The related revenues of which are reflected in a Price Cap Index.</P> <P>(i) <E T="03">Change in rate structure.</E> A restructuring or other alteration of the rate components for an existing service.</P> <P>(j) <E T="03">Charges.</E> The price for service based on tariffed rates.</P> <P>(k) <E T="03">Commercial contractor.</E> The commercial firm to whom the Commission annually awards a contract to make copies of Commission records for sale to the public.</P> <P>(l) <E T="03">Commission</E>. The Federal Communications Commission.</P> <P>(m) <E T="03">Concurring carrier.</E> A carrier (other than a connecting carrier) subject to the Act which concurs in and assents to schedules of rates and regulations filed on its behalf by an issuing carrier or carriers.</P> <P>(n) <E T="03">Connecting carrier.</E> A carrier engaged in interstate or foreign communication solely through physical connection with the facilities of another carrier not directly or indirectly controlling or controlled by, or under direct or indirect common control with, such carrier.</P> <P>(o) <E T="03">Contract-based tariff.</E> A tariff based on a service contract entered into between a non-dominant carrier and a customer, or between a customer and a price cap local exchange carrier which has obtained permission to offer contract-based tariff services pursuant to part 69, subpart H, of this chapter.</P> <P>(p) <E T="03">Corrections.</E> The remedy of errors in typing, spelling, or punctuation.</P> <P>(q) <E T="03">Dominant carrier.</E> A carrier found by the Commission to have market power (<E T="03">i.e.,</E> power to control prices).</P> <P>(r) <E T="03">GDP Price Index (GDP-PI).</E> The estimate of the Chain-Type Price Index for Gross Domestic Product published by the United States Department of Commerce, which the Commission designates by Order.</P> <P>(s) <E T="03">GNP Price Index (GNP-PI).</E> The estimate of the “Fixed-Weighted Price Index for Gross National Product, 1982 Weights” published by the United States Department of Commerce, which the Commission designates by Order.</P> <P>(t) <E T="03">Issuing carrier.</E> A carrier subject to the Act that publishes and files a tariff or tariffs with the Commission.</P> <P>(u) <E T="03">Line month.</E> Line demand per month multiplied by twelve.</P> <P>(v) <E T="03">Local exchange carrier.</E> Any person that is engaged in the provision of telephone exchange service or exchange access as defined in section 3(26) of the Act.</P> <P>(w) <E T="03">Mid-size company.</E> All price cap local exchange carriers other than the Regional Bell Operating Companies and GTE.</P> <P>(x) <E T="03">New service offering.</E> A tariff filing that provides for a class or sub-class of service not previously offered by the carrier involved and that enlarges the range of service options available to ratepayers.</P> <P>(y) <E T="03">Non-dominant carrier.</E> A carrier not found to be dominant. </P> <P>(z) <E T="03">Other participating carrier.</E> A carrier subject to the Act that publishes a tariff containing rates and regulations applicable to the portion or through service it furnishes in conjunction with another subject carrier.</P> <P>(aa) <E T="03">Price Cap Local Exchange Carrier.</E> A local exchange carrier subject to regulation pursuant to § 61.41 through 61.49.</P> <P>(bb) <E T="03">Pooled Local Switching Revenue.</E> For certain qualified companies as set forth in § 61.48 (m), is the amount of additional local switching reductions in the July 2000 Annual filing allowed to be moved and recovered in the CMT basket.</P> <P>(cc) <E T="03">Price Cap CMT Revenue.</E> The maximum total revenue a filing entity would be permitted to receive from End User Common Line charges under § 69.152 of this chapter, Presubscribed Interexchange Carrier charges (PICCs) under § 69.153 of this chapter, Carrier Common Line charges under § 69.154 of this chapter, and Marketing under § 69.156 of this chapter, using Base Period lines. Price Cap CMT Revenue <PRTPAGE P="150"/>does not include the price cap local exchange carrier universal service contributions as of July 1, 2000. The Price Cap CMT revenue does not include the pooled local switching revenue outlined in paragraph (bb) of this section.</P> <P>(dd) <E T="03">Price Cap Index (PCI).</E> An index of prices applying to each basket of services of each carrier subject to price cap regulation, and calculated pursuant to § 61.45.</P> <P>(ee) <E T="03">Price cap regulation.</E> A method of regulation of dominant carriers provided in §§ 61.41 through 61.49.</P> <P>(ff) <E T="03">Price cap tariff filing.</E> Any tariff filing involving a service subject to price cap regulation, or that requires calculations pursuant to §§ 61.45, 61.46, or 61.47.</P> <P>(gg) [Reserved]</P> <P>(hh) <E T="03">Rate.</E> The tariffed price per unit of service.</P> <P>(ii) <E T="03">Rate increase.</E> Any change in a tariff which results in an increased rate or charge to any of the filing carrier's customers.</P> <P>(jj) <E T="03">Rate level change.</E> A tariff change that only affects the actual rate associated with a rate element, and does not affect any tariff regulations or any other wording of tariff language.</P> <P>(kk) <E T="03">Regulations.</E> The body of carrier prescribed rules in a tariff governing the offering of service in that tariff, including rules, practices, classifications, and definitions.</P> <P>(ll) <E T="03">Restructured service.</E> An offering which represents the modification of a method of charging or provisioning a service; or the introduction of a new method of charging or provisioning that does not result in a net increase in options available to customers.</P> <P>(mm) <E T="03">Rural Company.</E> A company that, as of December 31, 1999, was certified to the Commission as a rural telephone company.</P> <P>(nn) <E T="03">Service Band Index (SBI).</E> An index of the level of aggregate rate element rates in a service category, which index is calculated pursuant to § 61.47.</P> <P>(oo) <E T="03">Service category.</E> Any group of rate elements subject to price cap regulation, which group is subject to a band.</P> <P>(pp) <E T="03">Supplement.</E> A publication filed as part of a tariff for the purpose of suspending or canceling that tariff, or tariff publication and numbered independently from the tariff page series.</P> <P>(qq) <E T="03">Target Rate.</E> The applicable Target Rate shall be defined as follows:</P> <P>(1) For regional Bell Operating Companies and GTE, $0.0055 per ATS minute of use;</P> <P>(2) For a holding company with a holding company average of less than 19 Switched Access End User Common Line charge lines per square mile served such company may elect to use a Target Rate of $0.0095 with respect to all exchanges owned by that holding company on July 1, 2000, or which that holding company is, as of April 1, 2000, under a binding and executed contract to purchase;</P> <P>(3) For other price cap local exchange carriers, $0.0065 per ATS minute of use.</P> <P>(rr) <E T="03">Tariff.</E> Schedules of rates and regulations filed by common carriers.</P> <P>(ss) <E T="03">Tariff publication, or publication.</E> A tariff, supplement, revised page, additional page, concurrence, notice of revocation, adoption notice, or any other schedule of rates or regulations filed by common carriers.</P> <P>(tt) <E T="03">Tariff year.</E> The period from the day in a calendar year on which a carrier's annual access tariff filing is scheduled to become effective through the preceding day of the subsequent calendar year.</P> <P>(uu) <E T="03">Text change.</E> A change in the text of a tariff which does not result in a change in any rate or regulation.</P> <P>(vv) <E T="03">United States.</E> The several States and Territories, the District of Columbia, and the possessions of the United States.</P> <P>(ww) <E T="03">Corridor service.</E> “Corridor service” refers to interLATA services offered in the “limited corridors” established by the District Court in United States v. Western Electric Co., Inc., 569 F. Supp. 1057, 1107 (D.D.C. 1983).</P> <P>(xx) <E T="03">Toll dialing parity.</E> “Toll dialing parity” exists when there is dialing parity, as defined in § 51.5 of this chapter, for toll services.</P> <P>(yy) <E T="03">Loop-based services.</E> Loop-based services are services that employ Subcategory 1.3 facilities, as defined in § 36.154 of this chapter.</P> <P>(zz) <E T="03">Zone Average Revenue per Line.</E> The amount calculated as follows: </P> <EXTRACT> <PRTPAGE P="151"/> <FP SOURCE="FP-2">Zone Average Revenue per Line = (25% * (Loop + Port)) + U (Uniform revenue per line adjustment)</FP> <FP SOURCE="FP-2">Where: </FP> <FP SOURCE="FP-2">Loop = the price for unbundled loops in a UNE zone.</FP> <FP SOURCE="FP-2">Port = the price for switch ports in that UNE zone.</FP> <FP SOURCE="FP-2">U = [(Average Price Cap CMT Revenue per Line month in a study area * price cap local exchange carrier Base Period Lines)−(25% * <E T="8401">Σ</E> (price cap local exchange carrier Base Period Lines in a UNE Zone * ((Loop + Port ) for all zones)))] ÷ price cap local exchange carrier Base Period Lines in a study area.</FP> </EXTRACT> <CITA>[54 FR 19840, May 8, 1989, as amended at 55 FR 42382, Oct. 19, 1990; 56 FR 55239, Oct. 25, 1991; 58 FR 36147, July 6, 1993; 59 FR 10301, Mar. 4, 1994; 60 FR 19527, Apr. 19, 1995; 60 FR 20052, Apr. 24, 1995; 61 FR 59366, Nov. 22, 1996; 62 FR 5777, Feb. 7, 1997; 62 FR 31930, June 11, 1997; 64 FR 46586, Aug. 26, 1999; 64 FR 51265, Sept. 22, 1999; 65 FR 38694, June 21, 2000; 65 FR 57740, 57741, Sept. 26, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§§ 61.11-61.12</SECTNO> <RESERVED>[Reserved]</RESERVED> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart B—Rules for Electronic Filing</HD> <SOURCE> <HD SOURCE="HED">Source:</HD> <P>63 FR 35540, June 30, 1998, unless otherwise noted.</P> </SOURCE> <SECTION> <SECTNO>§ 61.13</SECTNO> <SUBJECT>Scope.</SUBJECT> <P>(a) This applies to all tariff publications of carriers required to file tariff publications electronically, and any tariff publication that a carrier chooses to file electronically.</P> <P>(b) All incumbent local exchange carriers are required to file tariff publications electronically.</P> <P>(c) All tariff publications shall be filed in a manner that is compatible and consistent with the technical requirements of the Electronic Tariff Filing System.</P> </SECTION> <SECTION> <SECTNO>§ 61.14</SECTNO> <SUBJECT>Method of filing publications.</SUBJECT> <P>(a) Publications filed electronically must be addressed to “Secretary, Federal Communications Commission, Washington, DC 20554.” The Electronic Tariff Filing System will accept filings 24 hours a day, seven days a week. The official filing date of a publication received by the Electronic Tariff Filing System will be determined by the date and time the transmission ends. If the transmission ends after the close of a business day, as that term is defined in § 1.4(e)(2) of this Chapter, the filing will be date and time stamped as of the opening of the next business day.</P> <P>(b)(1) In addition, except for issuing carriers filing tariffing fees electronically, for all tariff publications requiring fees as set forth in part 1, subpart G of this chapter, issuing carriers must submit the original of the cover letter (without attachments), FCC Form 159, and the appropriate fee to the Mellon Bank, Pittsburgh, PA at the address set forth in § 1.1105 of this chapter.</P> <P>(2) Issuing carriers filing tariffing fees electronically must submit the Form 159. The issuing carrier may submit the Form 159 in either of the methods set forth in paragraphs (b)(2)(i) or (b)(2)(ii) of this section:</P> <P>(i) Issuing carriers submitting tariffing fees electronically may submit a paper copy of the Form 159, and the original transmittal letter to the Secretary of the Commission in lieu of the Mellon Bank, or;</P> <P>(ii) Issuing carriers submitting tariffing fees electronically may submit a copy of the Form 159 electronically as an associated document with their tariff filing publication. In this instance issuing carriers must provide an electronic signature on their letter of transmittal in accordance with section 1.52 of this chapter.</P> <P>(iii) Regardless of whether the Form 159 is submitted pursuant to paragraph (b)(2)(i) or (b)(2)(ii) of this section, the Form 159 should display the Electronic Audit Code in the box in the upper left hand corner marked “reserved.” Issuing carriers should submit these fee materials on the same date as the submission in paragraph (a) of this section.</P> <P>(c) Carriers that are required to file publications electronically may not file those publications on paper or other media unless specifically required to do so by the Commission.</P> <P>(d) Carriers that are required to file publications electronically need only transmit one set of files to the Commission. No other copies to any other party are required.<PRTPAGE P="152"/> </P> <P>(e) Carriers that are required to file publications electronically must continue to comply with the format requirements set forth in part 61.</P> <CITA>[63 FR 35540, June 30, 1998, as amended at 64 FR 46586, Aug. 26, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.15</SECTNO> <SUBJECT>Letters of transmittal and cover letters.</SUBJECT> <P>(a) All tariff publications filed with the Commission electronically must be accompanied by a letter of transmittal. All letters of transmittal must:</P> <P>(1) Concisely explain the nature and purpose of the filing;</P> <P>(2) Specify whether supporting information is required for the new tariff or tariff revision, and specify the Commission rule or rules governing the supporting information requirements for that filing;</P> <P>(3) Contain a statement indicating the date and method of filing of the original of the transmittal as required by § 61.14(b).</P> <P>(b) Carriers filing tariffs electronically pursuant to the notice requirements of section 204(a)(3) of the Communications Act shall display prominently, in the upper right hand corner of the letter of transmittal, a statement that the filing is made pursuant to that section and whether the tariff is filed on 7 or 15 days notice.</P> <P>(c) Any carrier filing a new or revised tariff made on 15 days' notice or less shall include in the letter of transmittal the name, room number, street address, telephone number, and facsimile number of the individual designated by the filing carrier to receive personal or facsimile service of petitions against the filing as required under § 1.773(a)(4) of this chapter.</P> <P>(d) The letter of transmittal must specifically reference by number any special permission necessary to implement the tariff publication. Special permission must be granted prior to the filing of the tariff publication and may not be requested in the transmittal letter.</P> <P>(e) The letter of transmittal must be substantially in the format established in §§ 61.33(g) and 61.33(h)(1).</P> <P>(f) All submissions of documents other than a new tariff or revisions to an existing tariff, such as Base Documents or Tariff Review Plans, must be accompanied by a cover letter that concisely explains the nature and purpose of the filing. Publications submitted under this paragraph are not required to submit a tariffing fee.</P> </SECTION> <SECTION> <SECTNO>§ 61.16</SECTNO> <SUBJECT>Base documents.</SUBJECT> <P>(a) The Base Document is a complete tariff which incorporates all effective revisions, as of the last day of the preceding month. The Base Document should be submitted with a cover letter as specified in § 61.15(f) of this part and identified as the <E T="03">Monthly Updated Base Document.</E> </P> <P>(b) Initially, carriers that currently have tariffs on file with the commission must file a Base Document within five days of the initiation of mandatory electronic filing.</P> <P>(c) Subsequently, if there have been revisions that became effective up to and including the last day of the preceding month, a new Base Document must be submitted within the first five business days of the current month that will incorporate those revisions.</P> </SECTION> <SECTION> <SECTNO>§ 61.17</SECTNO> <SUBJECT>Method of filing applications for special permission.</SUBJECT> <P>(a) An application for special permission filed electronically must be addressed to “Secretary, Federal Communications Commission, Washington, DC 20554.” The Electronic Tariff Filing System will accept filings 24 hours a day, seven days a week. The official filing date of a publication received by the Electronic Tariff Filing System will be determined by the date and time the transmission ends. If the transmission ends after the close of a business day, as that term is defined in § 1.4(e)(2) of this chapter, the filing will be date and time stamped as of the opening of the next business day.</P> <P>(b) In addition, except for issuing carriers filing tariffing fees electronically, for special permission applications requiring fees as set forth in part 1, subpart G of this chapter, issuing carriers must submit the original of the application letter (without attachments), FCC Form 159, and the appropriate fee to the Mellon Bank, Pittsburgh, PA, at the address set forth in § 1.1105 of this chapter. Issuing carriers submitting tariffing fees electronically should submit a copy of the Form 159 and the <PRTPAGE P="153"/>original application letter to the Secretary of the Commission in lieu of the Mellon Bank. The Form 159 should display the Electronic Audit Code in the box in the upper left hand corner marked “reserved”. Issuing carriers should submit these fee materials on the same day as the transmission in paragraph (a) of this section.</P> <P>(c) In addition, if a carrier applies for special permission to revise joint tariffs, the application must state that it is filed on behalf of all carriers participating in the affected service. Applications must be numbered consecutively in a series separate from FCC tariff numbers, bear the signature of the officer or agent of the carrier, and be in the following format: </P> <EXTRACT> <FP>Application No. <E T="72">XXXXX</E> </FP> <FP>(Date)<E T="72">XXXXX</E> </FP> <FP>Secretary</FP> <FP>Federal Communications Commission</FP> <FP>Washington, DC 20554.</FP> </EXTRACT> <P>Attention: Common Carrier Bureau (here provide the statements required by § 61.152). </P> <EXTRACT> <FP>(Exact name of carrier)<E T="72">XXXXX</E> </FP> <FP>(Name of officer or agent)<E T="72">XXXXX</E> </FP> <FP>(Title of officer or agent)<E T="72">XXXXX</E> </FP> </EXTRACT> <CITA>[63 FR 35540, June 30, 1998, as amended at 64 FR 46586, Aug. 26, 1999]</CITA> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart C—General Rules for Nondominant Carriers</HD> <SECTION> <SECTNO>§ 61.18</SECTNO> <SUBJECT>Scope.</SUBJECT> <P>The rules in this subpart apply to all nondominant carriers.</P> <CITA>[64 FR 46587, Aug. 26, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.19</SECTNO> <SUBJECT>Detariffing of interstate, domestic, interexchange services.</SUBJECT> <P>(a) Except as otherwise provided in paragraphs (b) and (c), or by Commission order, carriers that are nondominant in the provision of interstate, domestic, interexchange services shall not file tariffs for such services.</P> <P>(b) Carriers that are nondominant in the provision of domestic, interstate, interexchange services are permitted to file tariffs for dial-around 1+services. For the purposes of this paragraph, dial-around 1+calls are those calls made by accessing the interexchange carrier through the use of that carrier's carrier access code.</P> <P>(c) Carriers that are nondominant in the provision of domestic, interstate, interexchange services are permitted to file a tariff for such interstate service applicable to those customers who contact the local exchange carrier to designate an interexchange carrier or to initiate a change with respect to their primary interexchange carrier. Such tariff will enable the interexchange carrier to provide service to the customer until the interexchange carrier and the customer consummate a written agreement, but in no event shall the interexchange carrier provide service to its customer pursuant to such tariff for more than 45 days.</P> <CITA>[62 FR 59604, Nov. 4, 1997. Redesignated and amended at 64 FR 46587, Aug. 26, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.20</SECTNO> <SUBJECT>Method of filing publications.</SUBJECT> <P>(a) Publications sent for filing must be addressed to ”Secretary, Federal Communications Commission, Washington, DC 20554.“ The date on which the publication is received by the Secretary of the Commission (or the Mail Room where submitted by mail) is considered the official filing date.</P> <P>(b)(1) In addition, except for issuing carriers filing tariffing fees electronically, for all tariff publications requiring fees as set forth in part 1, subpart G of this chapter, issuing carriers must submit the original of the cover letter (without attachments), FCC Form 159, and the appropriate fee to the Mellon Bank, Pittsburgh, PA at the address set forth in § 1.1105 of this chapter. Issuing carriers submitting tariffing fees electronically should submit the Form 159 and the original cover letter to the Secretary of the Commission in lieu of the Mellon Bank. The Form 159 should display the Electronic Audit Code in the box in the upper left hand corner marked “reserved.” Issuing carriers should submit these fee materials on the same date as the submission in paragraph (a) of this section.</P> <P>(2) International carriers must certify in their original cover letter that they are authorized under Section 214 of the Communications Act of 1934, as amended, to provide service, and reference the FCC file number of that authorization.</P> <P>(c) In addition to the requirements set forth in paragraphs (a) and (b) of <PRTPAGE P="154"/>this section, the issuing carrier must send a copy of the cover letter with one 3<FR>1/2</FR> inch diskette or CD-ROM containing both the complete tariff and any attachments, as appropriate, to the Secretary, Federal Communications Commission. In addition, the issuing carrier must send one diskette or CD-ROM of the complete tariff and a copy of the cover letter to the commercial contractor (at its office on Commission premises), and to the Chief, Tariff and Pricing Analysis Branch. The latter should be clearly labeled as the “Public Reference Copy.” The issuing carrier should file the copies required by this paragraph so they will be received on the same date as the filings in paragraph (a) of this section. In cases where the a single diskette or CD-ROM does not provide sufficient capacity for the carrier's entire tariff filing, the issuing carrier may submit two or more diskettes, or two or more CD-ROMs, as necessary.</P> <CITA>[58 FR 44460, Aug. 23, 1993, as amended at 61 FR 15726, Apr. 9, 1996. Redesignated at 61 FR 59366, Nov. 22, 1996, and further redesignated and amended at 64 FR 46587, Aug. 26, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.21</SECTNO> <SUBJECT>Cover letters.</SUBJECT> <P>(a)(1) Except as specified in § 61.32(b), all publications filed with the Commission must be accompanied by a cover letter, 8.5 by 11 inches (21.6 cm × 27.9 cm) in size, and must be plainly printed in black ink. All transmittal letters should briefly explain the nature and purpose of the filing and indicate the date and method of filing of the original cover letter, as required by § 61.20(b)(1) of this part.</P> <P>(2) International carriers must certify that they are authorized under Section 214 of the Communications Act of 1934, as amended, to provide service, and reference the FCC file number of that authorization.</P> <P>(b) A separate cover letter may accompany each publication, or an issuing carrier may file as many publications as desired with one cover letter. </P> <NOTE> <HD SOURCE="HED">Note:</HD> <P>If a receipt for accompanying publication is desired, the cover letter must be sent in duplicate. One copy showing the date of the receipt by the Commission will then be returned to the sender.</P> </NOTE> <CITA>[58 FR 44460, Aug. 23, 1993, as amended at 61 FR 15726, Apr. 9, 1996. Redesignated at 61 FR 59366, Nov. 22, 1996, and further redesignated and amended at 64 FR 46587, Aug. 26, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.22</SECTNO> <SUBJECT>Composition of tariffs.</SUBJECT> <P>(a) The tariff must be submitted on a 3<FR>1/2</FR> inch (8.89 cm) diskette, or a 5 inch CD-ROM, formatted in an IBM-compatible form using either WordPerfect 5.1, Microsoft Word 6, or Microsoft Word 97 software. No diskettes shall contain more than one tariff. The diskette or CD-ROM must be submitted in “read only” mode. The diskette or CD-ROM must be clearly labelled with the carrier's name, Tariff Number, software used, and the date of submission. When multiple diskettes or CD-ROMs are submitted, the issuing carrier shall clearly label each diskette in the following format: “1 of <E T="72">_</E>”, “2 of <E T="72">_</E>”, etc.</P> <P>(b) The tariff must contain the carrier's name, the international Section 214 authorization FCC file number (when applicable), and the information required by Section 203 of the Act.</P> <P>(c)(1) Changes to a tariff must be made by refiling the entire tariff on a new diskette, with the changed material included. The carrier must indicate in the tariff what changes have been made.</P> <P>(2) Any issuing carrier submitting an individual tariff that requires ten or more diskettes that wishes to revise its tariff is permitted to do so by filing a diskette containing only those pages on which the changed material is located. Any such carrier shall file a current effective version of its entire tariff on the first business day of each month. For purposes of this paragraph, “business day” is defined in § 1.4(e)(2) of this chapter.</P> <P>(d) Domestic and international nondominant carriers subject to the provisions of this section are not subject to the tariff filing requirements of § 61.54.</P> <P>(e)(1) For contract-based tariffs defined in § 61.3(m), a separate letter of transmittal may accompany each tariff filed, or the above format may be modified for filing as many publications as may be desired with one transmittal letter. The transmittals must be numbered in a series separate from <PRTPAGE P="155"/>transmittals for non-contract tariff filing. Numbers must appear on the face of the transmittal and be in the form of “CTT No. <E T="72">XXX</E>”, using CTT as an abbreviation for contract-based tariff transmittals, or some similar form that indicates that the transmittal is a contract-based tariff transmittal. Contract-based tariffs must also be numbered in a series separate from non-contract-based tariffs. Numbers must be in the form of “CT No. <E T="72">XXX</E>”, using CT as an abbreviation for contract-based tariffs, or some similar form that indicates that the tariff is a contract-based tariff. Each contract-based tariff must be assigned a separate number. Transmittals and tariffs subject to this paragraph shall be filed beginning with the number “1” and shall be numbered consecutively.</P> <P>(2) Composition of contract-based tariffs shall comply with §§ 61.54 (b) through (i).</P> <P>(3) Contract-based tariffs shall include the following:</P> <P>(i) The term of the contract, including any renewal options;</P> <P>(ii) A brief description of each of the services provided under the contract;</P> <P>(iii) Minimum volume commitments for each service;</P> <P>(iv) The contract price for each service or services at the volume levels committed to by the customers;</P> <P>(v) A general description of any volume discounts built into the contract rate structure; and</P> <P>(vi) A general description of other classifications, practices and regulations affecting the contract rate.</P> <CITA>[58 FR 44460, Aug. 23, 1993; 58 FR 48323, Sept. 15, 1993, as amended at 61 FR 15727, Apr. 9, 1996. Redesignated at 61 FR 59366, Nov. 22, 1996, and further redesignated and amended at 64 FR 46587, Aug. 26, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.23</SECTNO> <SUBJECT>Notice requirements.</SUBJECT> <P>(a) Every proposed tariff filing must bear an effective date and, except as otherwise provided by regulation, special permission, or Commission order, must be made on at least the number of days notice specified in this section.</P> <P>(b) Notice is accomplished by filing the proposed tariff changes with the Commission. Any period of notice specified in this section begins on and includes the date the tariff is received by the Commission, but does not include the effective date. In computing the notice period required, all days including Sundays and holidays must be counted.</P> <P>(c) All tariff filings of domestic and international non-dominant carriers must be made on at least one day's notice.</P> <CITA>[58 FR 44460, Aug. 23, 1993, as amended at 61 FR 15727, Apr. 9, 1996. Redesignated at 61 FR 59366, Nov. 22, 1996, and further redesignated and amended at 64 FR 46587, 46588, Aug. 26, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.25</SECTNO> <SUBJECT>References to other instruments.</SUBJECT> <P>In addition to the cross-references permitted pursuant to § 61.74, a non-dominant carrier may cross-reference in its tariff publication only the rate provisions of another carrier's FCC tariff publication, provided that the following conditions are met:</P> <P>(a) The tariff being cross-referenced must be on file with the Commission and in effect;</P> <P>(b) The issuing carrier must specifically identify in its tariff the cross-referenced tariff by Carrier Name and FCC Tariff Number;</P> <P>(c) The issuing carrier must specifically identify in its tariff the rates being cross-referenced so as to leave no doubt as to the exact rates that will apply, including but not limited to any applicable credits, discounts, promotions; and</P> <P>(d) The issuing carrier must keep its cross-references current.</P> <CITA>[64 FR 46588, Aug. 26, 1999]</CITA> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart D—General Tariff Rules for International Dominant Carriers</HD> <SECTION> <SECTNO>§ 61.28</SECTNO> <SUBJECT>International dominant carrier tariff filing requirements.</SUBJECT> <P>(a) Any carrier classified as dominant for the provision of particular international communications services on a particular route due only to a foreign carrier affiliation pursuant to § 63.10 of this Chapter shall file tariffs for those services on at least one day's notice without cost support.</P> <P>(b) Any carrier classified as dominant for the provision of particular international communications services on a <PRTPAGE P="156"/>particular route for any reason other than a foreign carrier affiliation pursuant to § 63.10 shall file tariffs for those services pursuant to the notice and cost support requirements for tariff filings of dominant domestic carriers, as set forth in subpart E of this part.</P> <P>(c) Other than the notice and cost support requirements set forth in paragraphs (a) and (b) of this section, all tariff filing requirements applicable to all carriers classified as dominant for the provision of particular international communications services on a particular route are set forth in subpart C of this part.</P> <CITA>[64 FR 46588, Aug. 26, 1999]</CITA> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart E—General Rules for Dominant Carriers</HD> <SECTION> <SECTNO>§ 61.31</SECTNO> <SUBJECT>Scope.</SUBJECT> <P>The rules in this subpart apply to all dominant carriers.</P> <CITA>[64 FR 46588, Aug. 26, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.32</SECTNO> <SUBJECT>Method of filing publications.</SUBJECT> <P>(a) Publications sent for filing must be addressed to “Secretary, Federal Communications Commission, Washington, DC 20554.” The date on which the publication is received by the Secretary of the Commission (or the Mail Room where submitted by mail) is considered the official filing date.</P> <P>(b) In addition, except for issuing carriers filing tariffing fees electronically, for all tariff publications requiring fees as set forth in part 1, subpart G of this chapter, issuing carriers must submit the original of the transmittal letter (without attachments), FCC Form 159, and the appropriate fee to the Mellon Bank, Pittsburgh, PA, at the address set forth in § 1.1105 of this chapter. Issuing carriers submitting tariffing fees electronically should submit the Form 159 and the original cover letter to the Secretary of the Commission in lieu of the Mellon Bank. The Form 159 should display the Electronic Audit Code in the box in the upper left hand corner marked “reserved.” Issuing carriers should submit these fee materials on the same date as the submission in paragraph (a) of this section.</P> <P>(c) In addition to the requirements set forth in paragraphs (a) and (b) of this section, the issuing carrier must send a copy of the transmittal letter with two copies of the proposed tariff pages and all attachments, including the supporting information specified in § 61.38 or § 61.49, as appropriate, to the Secretary, Federal Communications Commission. In addition, the issuing carrier must send a copy of the publication, supporting information specified in § 61.38 or § 61.49, as appropriate, and transmittal letter to the commercial contractor (at its office on Commission premises), and to the Chief, Tariff and Pricing Analysis Branch. The latter should be clearly labeled as the “Public Reference Copy.” The copies of supporting information required here are in addition to those required by § 61.38(c). The issuing carrier must file the copies required by this paragraph so they will be received on the same date as the filings in paragraph (a).</P> <CITA>[55 FR 19173, May 8, 1990, as amended at 64 FR 46588, 46593, Aug. 26, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.33</SECTNO> <SUBJECT>Letters of transmittal.</SUBJECT> <P>(a) Except as specified in § 61.32(b), all publications filed on paper with the Commission must be numbered consecutively by the issuing carrier beginning with Number 1, and must be accompanied by a letter of transmittal, A4 (21 cm x 29.7 cm) or 8<FR>1/2</FR> by 11 inches (21.6 cm x 27.9 cm) in size. All letters of transmittal must</P> <P>(1) Concisely explain the nature and purpose of the filing;</P> <P>(2) Specify whether supporting information under § 61.38 is required;</P> <P>(3) State whether copies have been delivered to the Commercial Contractor and Chief, Tariff and Pricing Analysis Branch as required by § 61.32, and</P> <P>(4) Contain a statement indicating the date and method of filing of the original of the transmittal letter as required by § 61.32(b), and the date and method of filing the copies as required by § 61.32 (a) and (c).</P> <P>(b) In addition to the requirements set forth in paragraph (a) of this section, any local exchange carrier choosing to file an Access Tariff under § 61.39 must include in the transmittal:</P> <P>(1) A summary of the filing's basic rates, terms and conditions;<PRTPAGE P="157"/> </P> <P>(2) A statement concerning whether any prior Commission facility authorization necessary to the implementation of the tariff has been obtained; and</P> <P>(3) A statement that the filing is made pursuant to § 61.39.</P> <P>(c) In addition to the requirements set forth in paragraph (a) of this section, any carrier filing a price cap tariff must include in the letter of transmittal a statement that the filing is made pursuant to § 61.49.</P> <P>(d) Tariffs filed pursuant to section 204(a)(3) of the Communications Act shall display prominently in the upper right hand corner of the letter of transmittal a statement that the filing is made pursuant to that section and whether it is being filed on 7- or 15-days' notice.</P> <P>(e) In addition to the requirements set forth in paragraph (a) of this section, any carrier filing a new or revised tariff made on 15 days' notice or less shall include in the letter of transmittal, the name, room number, street address, telephone number, and facsimile number of the individual designated by the filing carrier to receive personal or facsimile service of petitions against the filing as required under § 1.773(a)(4) of this chapter.</P> <P>(f) In addition to the requirements set forth in paragraphs (a), (b), and (c) of this section, the letter of transmittal must specifically reference by number any special permission necessary to implement the tariff publication. Special permission must be granted prior to the filing of the tariff publication, and may not be requested in the transmittal letter.</P> <P>(g) The letter of transmittal must be substantially in the following format. </P> <EXTRACT> <FP SOURCE="FP-DASH">(Exact name of carrier in full)</FP> <FP SOURCE="FP-DASH">(Post Office Address)</FP> <FP SOURCE="FP-DASH"> <E T="72">_______</E>, 19<E T="72">__</E>.</FP> <FP SOURCE="FP-DASH">(Date)</FP> <FP>Transmittal No.<E T="72">____</E> </FP> <FP>Secretary,</FP> <FP>Federal Communications Commission</FP> <FP>Washington, DC 20554</FP> <P>Attention: Common Carrier Bureau. </P> <P>The accompanying tariff (or other publication) issued by <E T="72">________</E>, and bearing FCC No. <E T="72">____</E>, effective <E T="72">_______</E>, 19<E T="72">__</E>, is sent to you for filing in compliance with the requirements of the Communications Act of 1934, as amended. (Here give the additional information required.) </P> <FP SOURCE="FP-DASH">(Name of issuing officer or agent)</FP> <FP SOURCE="FP-DASH">(Title)</FP> </EXTRACT> <P>(h)(1) A separate letter of transmittal may accompany each publication, or the above format may be modified to provide for filing as many publications as desired with one transmittal letter.</P> <P>(2) [Reserved] </P> <NOTE> <HD SOURCE="HED">Note to § 61.33:</HD> <P>If a receipt for accompanying publication is desired, the letter of transmittal must be sent in duplicate. One copy showing the date of receipt by the Commission will then be returned to the sender.</P> </NOTE> <CITA>[55 FR 19173, May 8, 1990, as amended by 56 FR 55239, Oct. 25, 1991; 58 FR 17530, Apr. 5, 1993; 58 FR 44906, Aug. 25, 1993; 62 FR 5777, Feb. 7, 1997; 64 FR 46588, 46593, Aug. 26, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.38</SECTNO> <SUBJECT>Supporting information to be submitted with letters of transmittal.</SUBJECT> <P>(a) <E T="03">Scope.</E> This section applies to dominant carriers whose gross annual revenues exceed $500,000 for the most recent 12 month period of operations or are estimated to exceed $500,000 for a representative 12 month period. Local exchange carriers serving 50,000 or fewer access lines in a given study area that are described as subset 3 carriers in § 69.602 of this chapter may submit Access Tariff filings for that study area pursuant to either this section or § 61.39. However, the Commission may require any carrier to submit such information as may be necessary for a review of a tariff filing. This section (other than the preceding sentence of this paragraph) shall not apply to tariff filings proposing rates for services identified in § 61.42 (d), (e), and (g).</P> <P>(b) <E T="03">Explanation and data supporting either changes or new tariff offerings.</E> The material to be submitted for a tariff change which affects rates or charges or for a tariff offering a new service, must include an explanation of the changed or new matter, the reasons for the filing, the basis of ratemaking employed, and economic information to support the changed or new matter.</P> <P>(1) For a tariff change the carrier must submit the following, including complete explanations of the bases for the estimates.<PRTPAGE P="158"/> </P> <P>(i) A cost of service study for all elements for the most recent 12 month period;</P> <P>(ii) A study containing a projection of costs for a representative 12 month period;</P> <P>(iii) Estimates of the effect of the changed matter on the traffic and revenues from the service to which the changed matter applies, the carrier's other service classifications, and the carrier's overall traffic and revenues. These estimates must include the projected effects on the traffic and revenues for the same representative 12 month period used in (ii) above.</P> <P>(2) For a tariff filing offering a new service, the carrier must submit the following, including complete explanations of the bases for the estimates.</P> <P>(i) A study containing a projection of costs for a representative 12 month period; and</P> <P>(ii) Estimates of the effect of the new matter on the traffic and revenues from the service to which the new matter applies, the carrier's other service classifications, and the carrier's overall traffic and revenues. These estimates must include the projected effects on the traffic and revenues for the same representative 12 month period used in paragraph (b)(2)(i) of this section.</P> <P>(3) [Reserved]</P> <P>(4) For a tariff that introduces a system of density pricing zones, as described in § 69.123 of this chapter, the carrier must, before filing its tariff, submit a density pricing zone plan including, <E T="03">inter alia,</E> documentation sufficient to establish that the system of zones reasonably reflects cost-related characteristics, such as the density of total interstate traffic in central offices located in the respective zones, and receive approval of its proposed plan.</P> <P>(c) <E T="03">Working papers and statistical data.</E> (1) Concurrently with the filing of any tariff change or tariff filing for a service not previously offered, the Chief, Tariff and Pricing Analysis Branch must be provided two sets of working papers containing the information underlying the data supplied in response to paragraph (b) of this section, and a clear explanation of how the working papers relate to that information.</P> <P>(2) All statistical studies must be submitted and supported in the form prescribed in § 1.363 of the Commission's Rules.</P> <P>(d) <E T="03">Form and content of additional material to be submitted with certain rate increases.</E> In the circumstances set out in paragraphs (d)(1) and (2) of this section, the filing carrier must submit all additional cost, marketing and other data underlying the working papers to justify a proposed rate increase. The carrier must submit this information in suitable form to serve as the carrier's direct case in the event the rate increase is set by the Commission for investigation.</P> <P>(1) Rate increases affecting single services or tariffed items.</P> <P>(i) A rate increase in any service or tariffed item which results in more than $1 million in additional annual revenues, calculated on the basis of existing quantities in service, without regard to the percentage increase in such revenues; or</P> <P>(ii) A single rate increase in any service or tariffed item, or successive rate increases in the same service or tariffed item within a 12 month period, either of which results in:</P> <P>(A) At least a 10 percent increase in annual revenues from that service or tariffed item, and</P> <P>(B) At least $100,000 in additional annual revenues, both calculated on the basis of existing quantities in service.</P> <P>(2) Rate increases affecting more than one service or tariffed item.</P> <P>(i) A general rate increase in more than one service or tariffed item occurring at one time, which results in more than $1 million in additional revenues calculated on the basis of existing quantities in service, without regard to the percentage increase in such revenues; or</P> <P>(ii) A general rate increase in more than one service or tariffed item occurring at one time, or successive general rate increases in the same services or tariffed items occurring within a 12 month period, either of which results in:</P> <P>(A) At least a 10 percent increase in annual revenues from those services or tariffed items, and<PRTPAGE P="159"/> </P> <P>(B) At least $100,000 in additional annual revenues, both calculated on the basis of existing quantities in service.</P> <P>(e) <E T="03">Submission of explanation and data by connecting carriers.</E> If the changed or new matter is being filed by the issuing carrier at the request of a connecting carrier, the connecting carrier must provide the data required by paragraphs (b) and (c) of this section on the date the issuing carrier files the tariff matter with the Commission.</P> <P>(f) <E T="03">Copies of explanation and data to customers.</E> Concurrently with the filing of any rate for special construction (or special assembly equipment and arrangements) developed on the basis of estimated costs, the offering carrier must transmit to the customer a copy of the explanation and data required by paragraphs (b) and (c) of this section.</P> <P>(g) On each page of cost support material submitted pursuant to this section, the carrier shall indicate the transmittal number under which that page was submitted.</P> <CITA>[49 FR 40869, Oct. 18, 1984, as amended at 53 FR 36289, Sept. 19, 1988; 54 FR 19841, May 8, 1989; 55 FR 42382, Oct. 19, 1990; 56 FR 55239, Oct. 25, 1991; 57 FR 54330, Nov. 18, 1992; 58 FR 36147, July 6, 1993; 58 FR 48762, Sept. 17, 1993; 64 FR 46588, 46593, Aug. 26, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.39</SECTNO> <SUBJECT>Optional supporting information to be submitted with letters of transmittal for Access Tariff filings effective on or after April 1, 1989, by local exchange carriers serving 50,000 or fewer access lines in a given study area that are described as subset 3 carriers in § 69.602.</SUBJECT> <P>(a) <E T="03">Scope.</E> This section provides for an optional method of filing for any local exchange carrier that is described as subset 3 carrier in § 69.602, which elects to issue its own Access Tariff for a period commencing on or after April 1, 1989, and which serves 50,000 or fewer access lines in a study area as determined under § 36.611(a)(8) of this chapter. However, the Commission may require any carrier to submit such information as may be necessary for review of a tariff filing. This section (other than the preceding sentence of this paragraph) shall not apply to tariff filings of local exchange carriers subject to price cap regulation.</P> <P>(b) <E T="03">Explanation and data supporting tariff changes.</E> The material to be submitted to either a tariff change or a new tariff which affects rates or charges must include an explanation of the filing in the transmittal as required by § 61.33. The basis for ratemaking must comply with the following requirements. Except as provided in paragraph (b)(5) of this section, it is not necessary to submit this supporting data at the time of filing. However, the local exchange carrier should be prepared to submit the data promptly upon reasonable request by the Commission or interested parties.</P> <P>(1) For a tariff change, the local exchange carrier that is a cost schedule carrier must propose Tariff Sensitive rates based on the following:</P> <P>(i) For the first period, a cost of service study for Traffic Sensitive elements for the most recent 12 month period with related demand for the same period.</P> <P>(ii) For subsequent filings, a cost of service study for Traffic Sensitive elements for the total period since the local exchange carrier's last annual filing, with related demand for the same period.</P> <P>(2) For a tariff change, the local exchange company that is an average schedule carrier must propose Traffic Sensitive rates based on the following:</P> <P>(i) For the first period, the local exchange carrier's most recent annual Traffic Sensitive settlement from the National Exchange Carrier Association pool.</P> <P>(ii) For subsequent filings, an amount calculated to reflect the Traffic Sensitive average schedule pool settlement the carrier would have received if the carrier had continued to participate, based upon the most recent average schedule formulas approved by the Commission.</P> <P>(3) For a tariff change, the local exchange carrier that is a cost schedule carrier must propose Common Line rates based on the following:</P> <P>(i) For the first biennial filing, the common line revenue requirement shall be determined by a cost of service study for the most recent 12-month period. Subscriber line charges shall be based on cost and demand data for the same period. Carrier common line rates shall be determined by the following formula:</P> <GPH DEEP="29" SPAN="1"> <PRTPAGE P="160"/> <GID>ER06JN97.008</GID> </GPH> <EXTRACT> <FP SOURCE="FP-2">where:</FP> </EXTRACT> <GPH DEEP="29" SPAN="1"> <GID>ER06JN97.009</GID> </GPH> <EXTRACT> <FP SOURCE="FP-2">And where:</FP> <FP SOURCE="FP-2"> <E T="03">CCL Rev Req</E> = carrier common line revenue requirement for the most recent 12-month period;</FP> <FP SOURCE="FP-2"> <E T="03">CCL MOU</E> <E T="54">b</E> = carrier common line minutes of use for the most recent 12-month period;</FP> <FP SOURCE="FP-2"> <E T="03">CCL MOU</E> <E T="54">1</E> = CCL <E T="03">MOU</E> <E T="52">b</E>; and</FP> <FP SOURCE="FP-2"> <E T="03">CCL MOU</E> <E T="54">0</E> = carrier common line minutes of use for the 12-month period preceding the most recent 12-month period.</FP> </EXTRACT> <P>(ii) For subsequent biennial filings, the common line revenue requirement shall be determined by a cost of service study for the most recent 24-month period. Subscriber line charges shall be based on cost and demand data for the same period. Carrier common line rates shall be determined by the following formula:</P> <GPH DEEP="29" SPAN="1"> <GID>ER06JN97.010</GID> </GPH> <EXTRACT> <FP SOURCE="FP-2">Where:</FP> </EXTRACT> <GPH DEEP="29" SPAN="1"> <GID>ER06JN97.011</GID> </GPH> <EXTRACT> <FP SOURCE="FP-2">And where:</FP> <FP SOURCE="FP-2"> <E T="03">CCL Rev Req</E> = carrier common line revenue requirement for the most recent 24-month period;</FP> <FP SOURCE="FP-2"> <E T="03">CCL MOU</E> <E T="52">b</E> = carrier common line minutes of use for the most recent 24-month period;</FP> <FP SOURCE="FP-2"> <E T="03">CCL MOU</E> <E T="52">1</E> = carrier common line minutes of use for the 12-month period; and</FP> <FP SOURCE="FP-2"> <E T="03">CCL MOU</E> <E T="52">0</E> = carrier common line minutes of use for the 12-month period preceding the most recent 12-month period.</FP> </EXTRACT> <P>(4) For a tariff change, the local exchange carrier which is an average schedule carrier must propose common line rates based on the following:</P> <P>(i) For the first biennial filings, the common line revenue requirement shall be determined by the local exchange carrier's most recent annual Common Line settlement from the National Exchange Carrier Association. Subscriber line charges shall be based on cost and demand data for the same period. Carrier common line rates shall be determined by the following formula:</P> <GPH DEEP="29" SPAN="1"> <GID>ER06JN97.012</GID> </GPH> <EXTRACT> <FP SOURCE="FP-2">Where:</FP> </EXTRACT> <GPH DEEP="29" SPAN="1"> <GID>ER06JN97.013</GID> </GPH> <EXTRACT> <FP SOURCE="FP-2">And where:</FP> <FP SOURCE="FP-2"> <E T="03">CCL Rev Req</E> = carrier common line settlement for the most recent 12-month period;</FP> <FP SOURCE="FP-2"> <E T="03">CCL MOU</E> <E T="54">b</E> = carrier common line minutes of use for the most recent 12-month period;</FP> <FP SOURCE="FP-2"> <E T="03">CCL MOU</E> <E T="54">1</E> = <E T="03">CCL MOU</E> <E T="52">b</E>; and</FP> <FP SOURCE="FP-2"> <E T="03">CCL MOU</E> <E T="54">0</E> = carrier common line minutes of use for the 12-month period preceding the most recent 12-month period.</FP> </EXTRACT> <P>(ii) For subsequent biennial filings, the common line revenue requirement shall be an amount calculated to reflect the average schedule pool settlements the carrier would have received if the carrier had continued to participate in the carrier common line pool, based upon the average schedule Common Line formulas developed by the National Exchange Carrier Association for the most recent 24-month period. Subscriber line charges shall be based on cost and demand data for the same period. Carrier common line rates shall be determined by the following formula:</P> <GPH DEEP="29" SPAN="1"> <GID>ER06JN97.014</GID> </GPH> <EXTRACT> <FP SOURCE="FP-2">Where:</FP> </EXTRACT> <GPH DEEP="29" SPAN="1"> <GID>ER06JN97.015</GID> </GPH> <EXTRACT> <FP SOURCE="FP-2">And where:</FP> <FP SOURCE="FP-2"> <E T="03">CCL Rev Req</E> = carrier common line settlement for the most recent 24-month period;</FP> <FP SOURCE="FP-2"> <E T="03">CCL MOU</E> <E T="54">b</E> = carrier common line minutes of use for the most recent 24-month period;</FP> <FP SOURCE="FP-2"> <E T="03">CCL MOU</E> <E T="54">1</E> = carrier common line minutes of use for the most recent 12-month period; and</FP> <FP SOURCE="FP-2"> <E T="03">CCL MOU</E> <E T="54">0</E> = carrier common line minutes of use for the 12-month period preceding the most recent 12-month period.</FP> </EXTRACT> <PRTPAGE P="161"/> <P>(5) For End User Common Line charges included in a tariff pursuant to this Section, the local exchange carrier must provide supporting information for the two-year historical period with its letter of transmittal in accordance with § 61.38.</P> <P>(c) <E T="03">Maximum allowable rate of return.</E> Local exchange carriers filing tariffs under this section are not required to comply with §§ 65.700 through 65.701, inclusive, of the Commission's Rules, except with respect to periods during which tariffs were not subject to this section. The Commission may require any carrier to submit such information if it deems it necessary to monitor the carrier's earnings. However, rates must be calculated based on the local exchange carrier's prescribed rate of return applicable to the period during which the rates are effective.</P> <P>(d) Rates for a new service that is the same as that offered by a price cap regulated local exchange carrier providing service in an adjacent serving area are deemed presumptively lawful, if the proposed rates, in the aggregate, are no greater than the rates established by the price cap local exchange carrier. Tariff filings made pursuant to this paragraph must include the following:</P> <P>(1) A brief explanation of why the service is like an existing service offered by a geographically adjacent price cap regulated local exchange carrier; and</P> <P>(2) Data to establish compliance with this subsection that, in aggregate, the proposed rates for the new service are no greater than those in effect for the same or comparable service offered by that same geographically adjacent price cap regulated local exchange carrier. Compliance may be shown through submission of applicable tariff pages of the adjacent carrier; a showing that the serving areas are adjacent; any necessary explanations and work sheets.</P> <P>(e) Average schedule companies filing pursuant to this section shall retain their status as average schedule companies.</P> <P>(f) On each page of cost support material submitted pursuant to this section, the carrier shall indicate the transmittal number under which that page was submitted.</P> <CITA>[52 FR 26682, July 16, 1987, as amended at 53 FR 36289, Sept. 19, 1988; 55 FR 42382, Oct. 19, 1990; 58 FR 36147, July 6, 1993; 62 FR 31004, June 6, 1997; 64 FR 46588, Aug. 26, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.40</SECTNO> <SUBJECT>Private line rate structure guidelines.</SUBJECT> <P>(a) The Commission uses a variety of tools to determine whether a carrier's private line tariffs are just, reasonable, and nondiscriminatory. The carrier's burden of cost justification can be reduced when its private line rate structures comply with the following five guidelines.</P> <P>(1) Rate structures for the same or comparable services should be integrated;</P> <P>(2) Rate structures for the same or comparable services should be consistent with one another;</P> <P>(3) Rate elements should be selected to reflect market demand, pricing convenience for the carrier and customers, and cost characteristics; a rate element which appears separately in one rate structure should appear separately in all other rate structures;</P> <P>(4) Rate elements should be consistently defined with respect to underlying service functions and should be consistently employed through all rate structures; and</P> <P>(5) Rate structures should be simple and easy to understand.</P> <P>(b) The guidelines do not preclude a carrier, in a given case when a private line tariff does not comply with these guidelines, from justifying its departure from the guidelines and showing that its tariff is just, reasonable, and nondiscriminatory.</P> </SECTION> <SECTION> <SECTNO>§ 61.41</SECTNO> <SUBJECT>Price cap requirements generally.</SUBJECT> <P>(a) Sections 61.42 through 61.49 shall apply as follows:</P> <P>(1) [Reserved]</P> <P>(2) To such local exchange carriers as specified by Commission order, and to all local exchange carriers, other than average schedule companies, that are affiliated with such carriers; and</P> <P>(3) On an elective basis, to local exchange carriers, other than those specified in paragraph (a)(2) of this section, that are neither participants in any <PRTPAGE P="162"/>Association tariff, nor affiliated with any such participants, except that affiliation with average schedule companies shall not bar a carrier from electing price cap regulation provided the carrier is otherwise eligible.</P> <P>(b) If a telephone company, or any one of a group of affiliated telephone companies, files a price cap tariff in one study area, that telephone company and its affiliates, except its average schedule affiliates, must file price cap tariffs in all their study areas.</P> <P>(c) The following rules in this paragraph (c) apply to telephone companies subject to price cap regulation, as that term is defined in § 61.3(ee), which are involved in mergers, acquisitions, or similar transactions.</P> <P>(1) Any telephone company subject to price cap regulation that is a party to a merger, acquisition, or similar transaction shall continue to be subject to price cap regulation notwithstanding such transaction.</P> <P>(2) Where a telephone company subject to price cap regulation acquires, is acquired by, merges with, or otherwise becomes affiliated with a telephone company that is not subject to price cap regulation, the latter telephone company shall become subject to price cap regulation no later than one year following the effective date of such merger, acquisition, or similar transaction and shall accordingly file price cap tariffs to be effective no later than that date in accordance with the applicable provisions of this part 61.</P> <P>(3) Notwithstanding the provisions of § 61.41(c)(2), when a telephone company subject to price cap regulation acquires, is acquired by, merges with, or otherwise becomes affiliated with a telephone company that qualifies as an “average schedule” company, the latter company may retain its “average schedule” status or become subject to price cap regulation in accordance with § 69.3(i)(3) of this chapter and the requirements referenced in that section.</P> <P>(d) Local exchange carriers that become subject to price cap regulation as that term is defined in § 61.3(ee) shall not be eligible to withdraw from such regulation.</P> <CITA>[55 FR 42382, Oct. 19, 1990; 55 FR 50558, Dec. 7, 1990, as amended at 56 FR 55239, Oct. 25, 1991; 64 FR 46589, Aug. 26, 1999; 65 FR 38695, June 21, 2000; 65 FR 57741, Sept. 26, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.42</SECTNO> <SUBJECT>Price cap baskets and service categories.</SUBJECT> <P>(a)-(c) [Reserved]</P> <P>(d) Each local exchange carrier subject to price cap regulation shall establish baskets of services as follows:</P> <P>(1) A basket for the common line, marketing, and certain residual interconnection charge interstate access elements as described in §§ 69.115, 69.152, 69.153, 69.154, 69.155, 69.156, and 69.157 of this chapter. For purposes of §§ 61.41 through 61.49, this basket shall be referred to as the “CMT basket.”</P> <P>(2) A basket for traffic sensitive switched interstate access elements. For purposes of §§ 61.41 through 61.49 of this chapter, this basket shall be referred to as the “traffic-sensitive basket.”</P> <P>(3) A basket for trunking services as described in §§ 69.110, 69.111, 69.112, 69.125(b), 69.129, and 69.155 of this chapter. For purposes of §§ 61.41 through 61.49, this basket shall be referred to as the “trunking basket.”</P> <P>(4)(i) To the extent that a local exchange carrier specified in § 61.41(a) (2) or (3) offers interstate interexchange services that are not classified as access services for the purpose of part 69 of this chapter, such exchange carrier shall establish a fourth basket for such services. For purposes of §§ 61.41 through 61.49 of this chapter, this basket shall be referred to as the “interexchange basket.”</P> <P>(ii) If a price cap carrier has implemented interLATA and intraLATA toll dialing parity everywhere it provides local exchange services at the holding company level, that price cap carrier may file a tariff revision to remove corridor and interstate intraLATA toll services from its interexchange basket.</P> <P>(5) A basket for special access services as described in § 69.114 of this chapter.</P> <P>(e)(1) The traffice sensitive switched interstate access basket shall contain <PRTPAGE P="163"/>such services as the Commission shall permit or require, including the following service categories:</P> <P>(i) Local switching as described in § 69.106(f) of this chapter;</P> <P>(ii) Information, as described in § 69.109 of this chapter;</P> <P>(iii) Data base access services;</P> <P>(iv) Billing name and address, as described in § 69.128 of this chapter;</P> <P>(v) Local switching trunk ports, as described in § 69.106(f)(1) of this chapter; and</P> <P>(vi) Signalling transfer point port termination, as described in § 69.125(c) of this chapter.</P> <P>(2) The trunking basket shall contain such switched transport as the Commission shall permit or require, including the following service categories and subcategories:</P> <P>(i) Voice grade entrance facilities, voice grade direct-trunked transport, voice grade dedicated signalling transport,</P> <P>(ii) High capacity flat-rated transport, including the following service subcategories:</P> <P>(A) DS1 entrance facilities, DS1 direct-trunked transport, DS1 dedicated signalling transport, and</P> <P>(B) DS3 entrance facilities, DS3 direct-trunked transport, DS3 dedicated signalling transport.</P> <P>(iii) Tandem-switched transport, as described in § 69.111 of this chapter; and</P> <P>(iv) Signalling for tandem switching, as described in § 69.129 of this chapter.</P> <P>(3) The special access basket shall contain special access services as the Commission shall permit or require, including the following service categories and subcategories:</P> <P>(i) Voice grade special access, WATS special access, metallic special access, and telegraph special access services;</P> <P>(ii) Audio and video services;</P> <P>(iii) High capacity special access, and DDS services, including the following service subcategories:</P> <P>(A) DS1 special access services; and</P> <P>(B) DS3 special access services;</P> <P>(iv) Wideband data and wideband analog services.</P> <P>(f) Each local exchange carrier subject to price cap regulation shall exclude from its price cap baskets such services or portions of such services as the Commission has designated or may hereafter designate by order.</P> <P>(g) New services, other than those within the scope of paragraph (f) of this section, must be included in the affected basket at the first annual price cap tariff filing following completion of the base period in which they are introduced. To the extent that such new services are permitted or required to be included in new or existing service categories within the assigned basket, they shall be so included at the first annual price cap tariff filing following completion of the base period in which they are introduced.</P> <CITA>[54 FR 19842, May 8, 1989, as amended at 55 FR 42382, Oct. 19, 1990; 55 FR 50558, Dec. 7, 1990; 56 FR 5956, Feb. 14, 1991; 56 FR 55239, Oct. 25, 1991; 57 FR 54718, Nov. 20, 1992; 58 FR 7868, Feb. 10, 1993; 58 FR 29552, May 21, 1993; 58 FR 31914, June 7, 1993; 58 FR 36145, July 6, 1993; 59 FR 10301, Mar. 4, 1994; 59 FR 32930, June 27, 1994; 60 FR 4569, Jan. 24, 1995; 60 FR 13639, Mar. 14, 1995; 60 FR 52346, Oct. 6, 1995; 62 FR 31930, June 11, 1997; 64 FR 46589, Aug. 26, 1999; 64 FR 51265, Sept. 22, 1999; 65 FR 38695, June 21, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.43</SECTNO> <SUBJECT>Annual price cap filings required.</SUBJECT> <P>Carriers subject to price cap regulation shall submit annual price cap tariff filings that propose rates for the upcoming tariff year, that make appropriate adjustments to their PCI, API, and SBI values pursuant to §§ 61.45 through 61.47, and that incorporate new services into the PCI, API, or SBI calculations pursuant to §§ 61.45(g), 61.46(b), and 61.47 (b) and (c). Carriers may propose rate, PCI, or other tariff changes more often than annually, consistent with the requirements of § 61.59.</P> <CITA>[64 FR 46589, Aug. 26, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.44</SECTNO> <RESERVED>[Reserved]</RESERVED> </SECTION> <SECTION> <SECTNO>§ 61.45</SECTNO> <SUBJECT>Adjustments to the PCI for Local Exchange Carriers.</SUBJECT> <P>(a) Local exchange carriers subject to price cap regulation shall file adjustments to the PCI for each basket as part of the annual price cap tariff filing, and shall maintain updated PCIs to reflect the effect of mid-year exogenous cost changes.</P> <P>(b)(1)(i) Adjustments to local exchange carrier PCIs, in those carriers' annual access tariff filings, the traffic <PRTPAGE P="164"/>sensitive basket described in § 61.42(d)(2), the trunking basket described in § 61.42(d)(3), the special access basket described in § 61.42(d)(5) and the Interexchange Basket described in § 61.42(d)(4)(i), shall be made pursuant to the following formula: </P> <FP SOURCE="FP-2">“PCI<E T="52">t</E>=PCI<E T="52">t-1</E>[1+w[GDP—PI—X] + Z/R].”</FP> <FP SOURCE="FP-2">PCI<E T="52">t−1</E> = PCI<E T="52">t−1</E>[1+w[GDP−PI−X] + Z/R] </FP> <P>Where the terms in the equation are described: </P> <FP SOURCE="FP-2">GDP-PI = For annual filings only, the percentage change in the GDP-PI between the quarter ending six months prior to the effective date of the new annual tariff and the corresponding quarter of the previous year. For all other filings, the value is zero.</FP> <FP SOURCE="FP-2">X = For the CMT, traffic sensitive, and trunking baskets, for annual filings only, the factor is set at the level prescribed in paragraphs (b)(1)(ii) and (iii) of this section. For the interexchange basket, for annual filings only, the factor is set at the level prescribed in paragraph (b)(1)(v) of this section. For the special access basket, for annual filings only, the factor is set at the level prescribed in paragraph (b)(1)(iv) of this section. For all other filings, the value is zero.</FP> <FP SOURCE="FP-2">g = For annual filings for the CMT basket only, the ratio of minutes of use per access line during the base period, to minutes of use per access line during the previous base period, all minus 1.</FP> <FP SOURCE="FP-2">Z = The dollar effect of current regulatory changes when compared to the regulations in effect at the time the PCI was updated to PCI<E T="52">t−1</E>, measured at base period level of operations.</FP> <FP SOURCE="FP-2">Targeted Reduction = the actual possible dollar value of the (GDP-PI—X) reductions that will be targeted to the ATS Charge pursuant to § 61.45(i)(3). The reductions calculated by applying the (GDP-PI—X) portion of the formula to the CCL element within the CMT basket will contain the “g” component, as defined above.</FP> <FP SOURCE="FP-2">R = Base period quantities for each rate element “I”, multiplied by the price for each rate element “I” at the time the PCI was updated to PCI<E T="52">t−1.</E> </FP> <FP SOURCE="FP-2">w = R + Z, all divided by R (used for the traffic sensitive, trunking, and special access baskets).</FP> <FP SOURCE="FP-2">w<E T="52">ix</E> = R—(access rate in effect at the time the PCI was updated to PCI<E T="52">t−1</E> * base period demand) + Z, all divided by R.</FP> <FP SOURCE="FP-2">PCI<E T="52">t</E> = The new PCI value.</FP> <FP SOURCE="FP-2">PCI<E T="52">t−1</E> = the immediately preceding PCI value.</FP> <P>(b)(1)(ii) The X value applicable to the baskets specified in §§ 61.42(d)(1), (d)(2), and (d)(3), shall be 6.5%, to the extent necessary to reduce a tariff entity's ATS charge to its Target Rate as set forth in § 61.3(qq). Once an price cap local exchange carrier tariff entity's ATS Charge is equal to the Target Rate as set forth in § 61.3(qq) for the first time (the former NYNEX telephone companies may be treated as a separate tariff entity), then, except as provided in paragraph (b)(1)(iii) of this section, X is equal to GDP-PI and no further reductions will be mandated (<E T="03">i.e.,</E> if applying the full X-factor reduction for a given year would reduce the ATS charge below the Target Rate as set forth in § 61.3 (qq), the amount of X-factor reduction applied that year will be the amount necessary to reach the Target Rate as set forth in § 61.3 (qq)). A filing entity does not reach the Target Rate as set forth in § 61.3(qq) in any year in which it exercises an exogenous adjustment pursuant to § 61.45(d)(vii). For companies with separate tariff entities under a single price cap, the following rules shall apply:</P> <P>(A) Targeting amounts as defined in § 61.45(i)(1)(i) shall be identified separately, using the revenue for each of the tariff entities under the cap.</P> <P>(B) Each tariff entity shall only be required to use the amount of targeting necessary to get to the Target Rate as set forth in § 61.3 (qq).</P> <P>(b)(1)(iii)(A) Except as provided in paragraph (b)(1)(iii)(B) of this section, once the Tariff Entity's Target Rate as set forth in § 61.3 (qq) is achieved, the X-factor for the CMT basket will equal GDP-PI as long as GDP-PI is less than or equal to 6.5% and greater than 0%. If GDP-PI is greater than 6.5%, and an entity has eliminated its CCL and multi-line business PICCs charges, the <PRTPAGE P="165"/>X-factor for the CMT basket will equal 6.5%, and all End User Common Line charges, rates and nominal caps, will be increased by the difference between GDP-PI and the 6.5% X-factor. If GDP-PI is less than 0, the X-factor for the CMT basket will be 0.</P> <P>(B) For tariff filing entities with a Target Rate of $0.0095, or for the portion of a filing entity consolidated pursuant to § 61.48(o) that, prior to such consolidation, had a Target Rate of $0.0095, in which the ATS charge has achieved the Target Rate but in which the carrier common line (CCL) charge has not been eliminated, the X-factor for the CMT basket will be 6.5% until the earlier of June 30, 2004, or until CCL charges are eliminated pursuant to paragraph (i)(4) of this section. Thereafter, in any filing entity in which a CCL charge remains after July 1, 2004, the X-factor for the CMT basket will be determined pursuant to paragraph (b)(1)(iii)(A) of this section as if CCL charges were eliminated.</P> <P>(b)(1)(iv) For the special access basket specified in § 61.42(d)(5), the value of X shall be 3.0% for the 2000 annual filing. The value of X shall be 6.5% for the 2001, 2002 and 2003 annual filings. Starting in the 2004 annual filing, X shall be equal to GDP-PI for the special access basket.</P> <P>(b)(1)(v) For the interexchange basket specified in § 61.42(d)(4), the value of X shall be 3.0% for all annual filings. </P> <P>(b)(2) Adjustments to price cap local exchange carrier PCIs and average price cap CMT revenue per line, in tariff filings other than the annual access tariff filing, for the CMT basket described in § 61.42(d)(1), the traffic sensitive basket described in § 61.42(d)(2), the trunking basket described in § 61.42(d)(3), the interexchange basket described in § 61.42(d)(4), and the special access basket described in § 61.42(d)(5), shall be made pursuant to the formulas set forth in paragraph (b)(1)(i) of this section, except that the “w(GDP-PI—X)” component of those PCI formulas shall not be employed.</P> <P>(c) Effective July 1, 2000, the prices of the CMT basket rate elements, excluding special access surcharges under § 69.115 of this chapter and line ports in excess of basic under § 69.157 of this chapter, shall be set based upon Average Price Cap CMT Revenue per Line month.</P> <P>(d) The exogenous cost changes represented by the term “Z” in the formula detailed in paragraph (b)(1)(i) of this section shall be limited to those cost changes that the Commission shall permit or require by rule, rule waiver, or declaratory ruling.</P> <P>(1) Subject to further order of the Commission, those exogenous changes shall include cost changes caused by:</P> <P>(i) The completion of the amortization of depreciation reserve deficiencies;</P> <P>(ii) Such changes in the Uniform System of Accounts, including changes in the Uniform System of Accounts requirements made pursuant to § 32.16 of this chapter, as the Commission shall permit or require be treated as exogenous by rule, rule waiver, or declaratory ruling;</P> <P>(iii) Changes in the Separations Manual;</P> <P>(iv) [Reserved]</P> <P>(v) The reallocation of investment from regulated to nonregulated activities pursuant to § 64.901 of this chapter;</P> <P>(vi) Such tax law changes and other extraordinary cost changes as the Commission shall permit or require be treated as exogenous by rule, rule waiver, or declaratory ruling;</P> <P>(vii) Retargeting the PCI to the level specified by the Commission for carriers whose base year earnings are below the level of the lower adjustment mark, subject to the limitation in § 69.731 of this chapter. The allocation of LFAM amounts will be allocated pursuant to § 61.45(d)(3). This section shall not be applicable to tariff filings during the tariff year beginning July 1, 2000, but is applicable in subsequent years;</P> <P>(viii) Inside wire amortizations;</P> <P>(ix) The completion of amortization of equal access expenses.</P> <P>(2) Local exchange carriers specified in §§ 61.41(a)(2) or (a)(3) shall, in their annual access tariff filing, recognize all exogenous cost changes attributable to modifications during the coming tariff year in their Subscriber Plant Factor and the Dial Equipment Minutes factor, and completions of inside wire amortizations and reserve deficiency amortizations. <PRTPAGE P="166"/> </P> <P>(3) Exogenous cost changes shall be apportioned on a cost-causative basis between price cap services as a group, and excluded services as a group. Total exogenous cost changes thus attributed to price cap services shall be recovered from services other than those used to calculate the ATS charge.</P> <P>(e) [Reserved]</P> <P>(f) The exogenous costs caused by new services subject to price cap regulation must be included in the appropriate PCI calculations under paragraphs (b) and (c) of this section beginning at the first annual price cap tariff filing following completion of the base period in which such services are introduced.</P> <P>(g) In the event that a price cap tariff becomes effective, which tariff results in an API value (calculated pursuant to § 61.46) that exceeds the currently applicable PCI value, the PCI value shall be adjusted upward to equal the API value.</P> <P>(h) [Reserved]</P> <P>(i)(1)(i) Price cap local exchange carriers that are recovering revenues through rates pursuant to §§ 69.106, 69.108, 69.109, 69.110, 69.111, 69.112, 69.113, 69.118, 69.123, 69.124, 69.125, 69.129, or § 69.155 of this chapter shall target, to the extent necessary to reduce the ATS Charge to the Target Rate as set forth in § 61.3 (qq) for the first time, any PCI reductions associated with the dollar impact of application of the (GDP-PI—X) portion of the formula in § 61.45(b)(1)(i) to the traffic sensitive and trunking baskets. In order to calculate the actual dollars to transfer to the trunking and traffic sensitive baskets, carriers will first determine the “Targeted Revenue Differential” that will be transferred to the trunking and traffic sensitive baskets to reduce the ATS Charge to the Target Rate as set forth in § 61.3(qq). The Targeted Revenue Differential shall be applied only to the trunking and traffic sensitive baskets to the extent necessary to reduce the ATS charge to the Target Rate as set forth in § 61.3 (qq), and shall not be applied to reduce the PCIs in any other basket or to reduce Average Price Cap CMT Revenue per Line month, except as provided in § 61.45(i)(4).</P> <P>(ii) For the purposes of § 61.45(i)(1)(i), Targeted Revenue Differential will be determined by adding together the following amounts:</P> <P>(A) R * (GDP-PI−X) for the traffic sensitive basket, trunking basket, and the CMT basket excluding CCL revenues; and</P> <P>(B) CCL Revenues * [(GDP-PI-X−(g/2)]/[1 + (g/2)]</P> <P>Where “g” is defined in § 61.45(b)(1)(i).</P> <P>(2) Until a tariff entity's ATS Charge equals the Target Rate as set forth in § 61.3 (qq) for the first time, the Targeted Revenue Differential will be targeted to reduce the following rates for that tariff filing entity, in order of priority:</P> <P>(i) To the residual per minute Transport Interconnection Charge, until that rate is $0.00; then</P> <P>(ii) To the Information Surcharge, until that rate is $0.00; then</P> <P>(iii) To the other Local Switching charges and Switched Transport charges until the tariff entity's ATS Rate equals the Target Rate as set forth in § 61.3(qq) for the first time. In making these reductions, the reductions to Local Switching rates as a percentage of total X-factor reductions must be greater than or equal to the percentage proportion of Local Switching revenues to the total sum of revenues for Local Switching, Local Switching Trunk Ports, Signalling Transfer Point Port Termination, Switched Direct Trunked Transport, Signalling for Switched Direct Trunked Transport, Entrance Facilities for switched access traffic, Tandem Switched Transport, and Signalling for Tandem Switching (<E T="03">i.e.,</E> Local Switching gets at least its proportionate share of reductions).</P> <P>(3) After a price cap local exchange carrier reaches the Target Rate as set forth in § 61.3(qq), the ATS Rate will be recalculated each subsequent Annual Filing. This process will identify the new ATS Charge for the new base period level. Due to change in base period demand and inclusion of new services for that annual filing, the absolute level of a tariff entity's ATS Charge may change. The resulting new ATS Charge level will be what that tariff entity will be measured against during that base period. For example, if a <PRTPAGE P="167"/>company whose target is $0.0055 reached the Target Rate during the 2000 annual filing, that level may change to $0.0058 in the 2001 annual filing due to change in demand and inclusion of new services. Therefore, it will be the $0.0058 average rate that the tariff entity will be measured against for all non-annual filings. Likewise, if that same company was at the Target Rate during the 2000 filing, that level may change to $0.0053 average rate in the 2001 annual filing due to change in demand and inclusion of new services. In that case, it will be at the $0.0053 average rate that the tariff entity will be measured.</P> <P>(4) A company electing a $0.0095 Target Rate will, in the tariff year it reaches the Target Rate, apply any Targeted Revenue Differential remaining after reaching the Target Rate to reduce Average Price Cap CMT Revenue per Line month until the CCL charge is eliminated. In subsequent years, until the earlier of June 30, 2004 or when the CCL charge is eliminated, tariff filing entities with a Target Rate of $0.0095, or the portion of a filing entity consolidated pursuant to § 61.48(o) that, prior to such consolidation, had a Target Rate of $0.0095, will reduce Average Price Cap CMT Revenue per Line month according to the following method:</P> <P>(i) Filing entity calculates the maximum allowable carrier common line revenue, as defined in § 61.46(d)(1), that would be permitted in the absence of further adjustment pursuant to this paragraph;</P> <P>(ii) Filing entity identifies maximum amount of dollars available to reduce Average Price Cap CMT Revenue per Line month by the following:</P> <EXTRACT> <P>(CMT revenue in a $0.0095 Area—CCL revenue in a $0.0095 Area) * (GDP-PI—X) + (CCL Revenue in a $0.0095 Area) * [(GDP-PI—X)—(g/2)]/[1+(g/2)]</P> </EXTRACT> <P>(iii) The Average Price Cap CMT Revenue per Line month shall then be reduced by the lesser of the amount described in paragraph (i)(4)(i) of this section and the amount described in paragraph (i)(4)(ii) of this section, divided by base period Switched Access End User Common Line Charge lines.</P> <CITA>[65 FR 38696, June 21, 2000; 65 FR 57741, Seot. 26, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.46</SECTNO> <SUBJECT>Adjustments to the API.</SUBJECT> <P>(a) Except as provided in paragraphs (d) and (e) of this section, in connection with any price cap tariff filing proposing rate changes, the carrier must calculate an API for each affected basket pursuant to the following methodology: </P> <FP SOURCE="FP-1">API<E T="52">t</E> = API<E T="52">t-1</E>[Σi v<E T="52">i</E> (P<E T="52">t</E>/P<E T="52">t-1</E>)i]</FP> <FP SOURCE="FP-1">Where:</FP> <FP SOURCE="FP-1">API<E T="52">t</E> = the proposed API value,</FP> <FP SOURCE="FP-1">API<E T="52">t-1</E> = the existing API value,</FP> <FP SOURCE="FP-1">P<E T="52">t</E> = the proposed price for rate element “i,”</FP> <FP SOURCE="FP-1">P<E T="52">t-1</E> = the existing price for rate element “i,” and</FP> <FP SOURCE="FP-1">v<E T="52">i</E> = the current estimated revenue weight for rate element “i,” calculated as the ratio of the base period demand for the rate element “i” priced at the existing rate, to the base period demand for the entire basket of services priced at existing rates.</FP> <P>(b) New services subject to price cap regulation must be included in the appropriate API calculations under paragraph (a) of this section beginning at the first annual price cap tariff filing following completion of the base period in which they are introduced. This index adjustment requires that the demand for the new service during the base period must be included in determining the weights used in calculating the API.</P> <P>(c) Any price cap tariff filing proposing rate restructuring shall require an adjustment to the API pursuant to the general methodology described in paragraph (a) of this section. This adjustment requires the conversion of existing rates into rates of equivalent value under the proposed structure, and then the comparison of the existing rates that have been converted to reflect restructuring to the proposed restructured rates. This calculation may require use of carrier data and estimation techniques to assign customers of the preexisting service to those services (including the new restructured service) that will remain or become available after restructuring.</P> <P>(d) The maximum allowable carrier common line (CCL) revenue shall be computed pursuant to the following methodology: </P> <EXTRACT> <PRTPAGE P="168"/> <FP SOURCE="FP-2">CCL = CMT−EUCL−Interstate Access Universal Service Support Mechanism Per Line−PICC </FP> <FP SOURCE="FP-2">Where: </FP> <FP SOURCE="FP-2">CMT = Price Cap CMT Revenue as defined in § 61.3(cc).</FP> <FP SOURCE="FP-2">EUCL = Maximum allowable EUCL rates established pursuant to § 69.152 of this chapter multiplied by base period lines.</FP> <FP SOURCE="FP-2">Interstate Access Universal Service Support Per Line = the amount as determined by the Administrator pursuant to § 54.807 of this chapter times the number of base period lines for each customer class and zone receiving Interstate Access Universal Service support pursuant to part 54, subpart J.</FP> <FP SOURCE="FP-2">PICC = Maximum allowable PICC rates established pursuant to § 69.153 of this chapter multiplied by base period lines.</FP> </EXTRACT> <P>(e) In no case shall a price cap local exchange carrier include data associated with services offered pursuant to contract tariff in the calculations required by this section.</P> <CITA>[65 FR 38698, June 21, 2000; 65 FR 57741, 57742, Sept. 26, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.47</SECTNO> <SUBJECT>Adjustments to the SBI; pricing bands.</SUBJECT> <P>(a) In connection with any price cap tariff filing proposing changes in the rates of services in service categories, subcategories, or density zones, the carrier must calculate an SBI value for each affected service category, subcategory, or density zone pursuant to the following methodology: </P> <EXTRACT> <FP SOURCE="FP-2">SBI<E T="52">t</E> = SBI<E T="52">t‐1</E>[<E T="61">Σ</E> <E T="02">i</E> v<E T="52">i</E>(P<E T="52">t</E>/P<E T="52">t‐1</E>)<E T="52">i</E>]</FP> <FP SOURCE="FP-2">where</FP> <FP SOURCE="FP-2">SBI<E T="52">t</E> = the proposed SBI value,</FP> <FP SOURCE="FP-2">SBI<E T="52">t‐1</E> = the existing SBI value,</FP> <FP SOURCE="FP-2">P<E T="52">t</E> = the proposed price for rate element “i,”</FP> <FP SOURCE="FP-2">P<E T="52">t‐1</E> = the existing price for rate element “i,” and</FP> <FP SOURCE="FP-2">v<E T="52">i</E> = the current estimated revenue weight for rate element “i,” calculated as the ratio of the base period demand for the rate element “i” priced at the existing rate, to the base period demand for the entire group of rate elements comprising the service category priced at existing rates.</FP> </EXTRACT> <P>(b) New services that are added to existing service categories or subcategories must be included in the appropriate SBI calculations under paragraph (a) of this section beginning at the first annual price cap tariff filing following completion of the base period in which they are introduced. This index adjustment requires that the demand for the new service during the base period must be included in determining the weights used in calculating the SBI.</P> <P>(c) In the event that the introduction of a new service requires the creation of a new service category or subcategory, a new SBI must be established for that service category or subcategory beginning at the first annual price cap tariff filing following completion of the base period in which the new service is introduced. The new SBI should be initialized at a value of 100, corresponding to the service category or subcategory rates in effect the last day of the base period, and thereafter should be adjusted as provided in paragraph (a) of this section.</P> <P>(d) Any price cap tariff filing proposing rate restructuring shall require an adjustment to the affected SBI pursuant to the general methodology described in paragraph (a) of this section. This adjustment requires the conversion of existing rates in the rate element group into rates of equivalent value under the proposed structure, and then the comparison of the existing rates that have been converted to reflect restructuring to the proposed restructured rates. This calculation may require use of carrier data and estimation techniques to assign customers of the preexisting service to those services (including the new restructured service) that will remain or become available after restructuring.</P> <P>(e) Pricing bands shall be established each tariff year for each service category and subcategory within a basket. Each band shall limit the pricing flexibility of the service category, subcategory, as reflected in the SBI, to an annual increase of a specified percent listed in this paragraph, relative to the percentage change in the PCI for that basket, measured from the levels in effect on the last day of the preceding tariff year. For local exchanage carriers subject to price cap regulation as that term is defined in § 61.3(ee), there shall be no lower pricing band for any service category or subcategory.</P> <P>(1) Five percent:</P> <P>(i) Local Switching (traffic sensitive basket)</P> <P>(ii) Information (traffic sensitive basket)<PRTPAGE P="169"/> </P> <P>(iii) Database Access Services (traffic sensitive basket)</P> <P>(iv) 800 Database Vertical Services subservice (traffic sensitive basket)</P> <P>(v) Billing Name and Address (traffic sensitive basket)</P> <P>(vi) Local Switching Trunk Ports (traffic sensitive basket)</P> <P>(vii) Signalling Transfer Point Port Termination (traffic sensitive basket) </P> <P>(viii) Voice Grade (trunking and special access baskets)</P> <P>(ix) Audio/Video (special access basket)</P> <P>(x) Total High Capacity (trunking and special access baskets)</P> <P>(xi) DS1 Subservice (trunking and special access baskets)</P> <P>(xii) DS3 Subservice (trunking and special access baskets)</P> <P>(xiii) Wideband (special access basket)</P> <P>(2) Two percent:</P> <P>(i) Tandem-Switched Transport (trunking basket)</P> <P>(ii) Signalling for Tandem Switching (trunking basket)</P> <P>(f) A local exchange carrier subject to price cap regulation may establish density zones pursuant to the requirements set forth in § 69.123 of this chapter, for any service in the trunking and special access baskets, other than the interconnection charge set forth in § 69.124 of this chapter. The pricing flexibility of each zone shall be limited to an annual increase of 15 percent, relative to the percentage change in the PCI for that basket, measured from the levels in effect on the last day of the preceding tariff year. There shall be no lower pricing band for any density zone.</P> <P>(g) [Reserved]</P> <P>(h) [Reserved]</P> <P>(i)(l) [Reserved]</P> <P>(2) Effective January 1, 1998, notwithstanding the requirements of paragraph (a) of this section, if a local exchange carrier is recovering interconnection charge revenues through per-minute rates pursuant to § 69.155 of this chapter, any reductions to the PCI for the basket designated in § 61.42(d)(3) resulting from the application of the provisions of § 61.45(b)(1)(i) and from the application of the provisions of §§ 61.45(i)(1) and 61.45(i)(2) shall be directed to the SBI of the service category designated in § 61.42(d)(i).</P> <P>(3) [Reserved]</P> <P>(4) Effective January 1, 1998, the SBI reduction required by paragraph (i)(2) of this section shall be determined by dividing the sum of the dollar amount of any PCI reduction required by §§ 61.45(i)(1) and 61.45(i)(2), by the dollar amount associated with the SBI for the service category designated in § 61.42(e)(2)(vi), and multiplying the SBI for the service category designated in § 61.42(e)(2)(vi) by one minus the resulting ratio.</P> <P>(5) Effective July 1, 2000, notwithstanding the requirements of paragraph (a) of this section and subject to the limitations of § 61.45(i), if a local exchange carrier is recovering an ATS charge greater than its Target Rate as set forth in § 61.3(qq), any reductions to the PCI for the traffic sensitive or trunking baskets designated in §§ 61.42(d)(2) and 61.42(d)(3) resulting from the application of the provisions of § 61.45(b), and the formula in § 61.45(b) and from the application of the provisions of §§ 61.45(i)(1), and 61.45(i)(2) shall be directed to the SBIs of the service categories designated in §§ 61.42(e)(1) and 61.42(e)(2).</P> <P>(j) [Reserved]</P> <P>(k) In no case shall a price cap local exchange carrier include data associated with services offered pursuant to contract tariff in the calculations required by this section.</P> <CITA>[54 FR 19843, May 8, 1989, as amended at 55 FR 42384, Oct. 19, 1990; 56 FR 55239, Oct. 25, 1991; 57 FR 54331, Nov. 18, 1992; 58 FR 7868, Feb. 10, 1993; 58 FR 48762, Sept. 17, 1993; 59 FR 10302, Mar. 4, 1994; 59 FR 32930, June 27, 1994; 60 FR 19528, Apr. 19, 1995; 60 FR 52346, Oct. 6, 1995; 62 FR 4659, Jan. 31, 1997; 62 FR 31932, June 11, 1997; 62 FR 40460, July 29, 1997; 64 FR 46590, Aug. 26, 1999; 64 FR 51265, Sept. 22, 1999; 65 FR 38698, June 21, 2000; 65 FR 57742, Sept. 26, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.48</SECTNO> <SUBJECT>Transition rules for price cap formula calculations.</SUBJECT> <P>(a)-(h) [Reserved]</P> <P>(i) <E T="03">Transport and Special Access Density Pricing Zone Transition Rules—</E>(1) <E T="03">Definitions.</E> The following definitions apply for purposes of paragraph (i) of this section:<PRTPAGE P="170"/> </P> <P> <E T="03">Earlier date</E> is the earlier of the special access zone date and the transport zone date.</P> <P> <E T="03">Earlier service</E> is special access if the special access zone date precedes the transport zone date, and is transport if the transport zone date precedes the special access zone date.</P> <P> <E T="03">Later date</E> is the later of the special access zone date and the transport zone date.</P> <P> <E T="03">Later service</E> is transport if the special access zone date precedes the transport zone date, and is special access if the transport zone date precedes the special access zone date.</P> <P> <E T="03">Revenue weight</E> of a given group of services included in a zone category is the ratio of base period demand for the given service rate elements included in the category priced at existing rates, to the base period demand for the entire group of rate elements comprising the category priced at existing rates.</P> <P> <E T="03">Special access zone date</E> is the date on which a local exchange carrier tariff establishing divergent special access rates in different zones, as described in § 69.123(c) of this chapter, becomes effective.</P> <P> <E T="03">Transport zone date</E> is the date on which a local exchange carrier tariff establishing divergent switched transport rates in different zones, as described in § 69.123(d) of this chapter, becomes effective.</P> <P>(2) <E T="03">Simultaneous Introduction of Special Access and Transport Zones.</E> Local exchange carriers subject to price cap regulation that have established density pricing zones pursuant to § 69.123 of this chapter, and whose special access zone date and transport zone date occur on the same date, shall initially establish density pricing zone SBIs and bands pursuant to the methodology in §§ 61.47(e) through (f).</P> <P>(3) <E T="03">Sequential Introduction of Zones in the Same Tariff Year.</E> Notwithstanding §§ 61.47(e) through (f), local exchange carriers subject to price cap regulation that have established density pricing zones pursuant to § 69.123 of this chapter, and whose special access zone date and transport zone date occur on different dates during the same tariff year, shall, on the earlier date, establish density pricing zone SBIs and pricing bands using the methodology described in §§ 61.47(e) through (f), but applicable to the earlier service only. On the later date, such carriers shall recalculate the SBIs and pricing bands to limit the pricing flexibility of the services included in each density pricing zone category, as reflected in its SBI, as follows:</P> <P>(i) The upper pricing band shall be a weighted average of the following:</P> <P>(A) The upper pricing band that applied to the earlier services included in the zone category on the day preceding the later date, weighted by the revenue weight of the earlier services included in the zone category; and</P> <P>(B) 1.05 times the SBI value for the services included in the zone category on the day preceding the later date, weighted by the revenue weight of the later services included in the zone category.</P> <P>(ii) [Reserved]</P> <P>(iii) On the later date, the SBI value for the zone category shall be equal to the SBI value for the category on the day preceding the later date.</P> <P>(4) <E T="03">Introduction of Zones in Different Tariff Years.</E> Notwithstanding §§ 61.47(e) through (f), those local exchange carriers subject to price cap regulation that have established density pricing zones pursuant to § 69.123 of this chapter, and whose special access zone date and transport zone date do not occur within the same tariff year, shall, on the earlier date, establish density pricing zone SBIs and pricing bands using the methodology described in §§ 61.47(e) through (f), but applicable to the earlier service only.</P> <P>(i) On the later date, such carriers shall use the methodology set forth in paragraphs (a) through (d) of § 61.47 to calculate separate SBIs in each zone for each of the following groups of services:</P> <P>(A) DS1 special access services;</P> <P>(B) DS3 special access services;</P> <P>(C) DS1 entrance facilities, DS1 direct-trunked transport, and DS1 dedicated signalling transport;</P> <P>(D) DS3 entrance facilities, DS3 direct-trunked transport, and DS3 dedicated signalling transport;</P> <P>(E) Voice grade entrance facilities, voice grade direct-trunked transport, and voice grade dedicated signalling transport;<PRTPAGE P="171"/> </P> <P>(F) Tandem-switched transport; and</P> <P>(G) Such other special access services as the Commission may designate by order.</P> <P>(ii) From the later date through the end of the following tariff year, the annual pricing flexibility for each of the subindexes specified in paragraph (i)(4)(i) of this section shall be limited to an annual increase of five percent or an annual decrease of fifteen percent, relative to the percentage change in the PCI for the trunking basket, measured from the levels in effect on the last day of the tariff year preceding the tariff year in which the later date occurs.</P> <P>(iii) On the first day of the second tariff year following the tariff year during which the later date occurs, the local exchange carriers to which this paragraph applies shall establish the separate subindexes provided in § 61.47(e), and shall set the initial SBIs for those density pricing zone categories that are combined (specified in paragraphs (i)(4)(i)(A), (i)(4)(i)(B), (i)(4)(i)(C), (i)(4)(i)(D), (i)(4)(i)(E), and (i)(4)(i)(G) of this section) by computing the weighted averages of the SBIs that applied to the formerly separate zone categories, weighted by the revenue weights of the respective services included in the zone categories.</P> <P>(j)-(k) [Reserved]</P> <P>(l) <E T="03">Average Traffic Sensitive Revenues.</E> (1) In the July 1, 2000 annual filing, price cap local exchange carriers will make an additional reduction to rates comprising ATS charge, and to associated SBI upper limits and PCIs. This reduction will be calculated to be the amount that would be necessary to achieve a total $2.1 billion reduction in carrier common line and ATS rates by all price cap local exchange carriers, compared with those rates as they existed on June 30, 2000 using 2000 annual filing base period demand.</P> <P>(i) The net change in revenue associated with Carrier Common Line Rate elements resulting from:</P> <P>(A) The removal from access of price cap local exchange carrier contributions to the Federal universal service mechanisms;</P> <P>(B) Price cap local exchange carrier receipts of interstate access universal service support pursuant to subpart J of part 54;</P> <P>(C) Changes in End User Common Line Charges and PICC rates;</P> <P>(D) Changes in Carrier Common Line charges due to GDP-PI—X targeting for $0.0095 filing entities.</P> <P>(ii) Reductions in Average Traffic Sensitive charges resulting from:</P> <P>(A) Targeting of the application of the (GDP-PI—X) portion of the formula in § 61.45(b), and any applicable “g” adjustments;</P> <P>(B) The removal from access of price cap local exchange carrier contributions to the Federal universal service mechanisms;</P> <P>(C) Additional ATS charge reductions defined in paragraph (2) of this section.</P> <P>(2) Once the reductions in paragraph (l)(1)(i) and paragraphs (l)(1)(ii)(A) and (l)(1)(ii)(B) of this section are identified, the difference between those reductions and $2.1 billion is the total amount of additional reductions that would be made to ATS rates of price cap local exchange carriers. This amount will then be restated as the percentage of total price cap local exchange carrier Local Switching revenues as of June 30, 2000 using 2000 annual filing base period demand (“June 30 Local Switching revenues”) necessary to yield the total amount of additional reductions and taking into account the fact that, if participating, a price cap local exchange carrier would not reduce ATS rates below its Target Rate as set forth in § 61.3(qq). Each price cap local exchange carrier then reduces ATS rate elements, and associated SBI upper limits and PCIs, by a dollar amount equivalent to the percentage times the June 30 Local Switching revenues for that filing entity, provided that no price cap local exchange carrier shall be required to reduce its ATS rates below its Target Rate as set forth in § 61.3(qq). Each carrier can take its additional reductions against any of the ATS rate elements, provided that at least a proportional share must be taken against Local Switching rates.</P> <P>(m) <E T="03">Pooled Local Switching Revenues.</E> (1) Price cap local exchange carriers are permitted to pool local switching revenues in their CMT basket under one of the following conditions.<PRTPAGE P="172"/> </P> <P>(i) Any price cap local exchange carrier that would otherwise have July 1, 2000 price cap reductions as a percentage of Base Period Price Cap Revenues at the holding company level greater than the industry wide total July 1, 2000 price cap revenue reduction as a percentage of Base Period Price Cap Revenues may elect temporarily to pool the amount of the additional reductions above 25% of the Local Switching element revenues necessary to yield that carrier's proportionate share of a total $2.1 billion reduction in switched access usage rates on July 1, 2000. The basis of the reduction calculation will be R at PCI<E T="52">t-1</E> for the upcoming tariff year. The percentage reductions per line amounts will be calculated as follows: (Total Price Cap Revenue Reduction ÷ Base Period Price Cap Revenues)</P> <P>Pooled local switching revenue for each filing entity within a holding company that qualifies under this paragraph (i) will continue until such pooled revenues are eliminated under this paragraph. Notwithstanding the provisions of § 61.45(b)(1), once the Average Traffic Sensitive (ATS) rate reaches the applicable Target Rate as set forth in § 61.3(qq), the Targeted Revenue Differential as defined in § 61.45(i) shall be targeted to reducing pooled local switching revenue until the pooled local switching revenue is eliminated. Thereafter, the X-factor for these baskets will be determined in accordance with § 61.45(b)(1).</P> <P>(ii) Price cap local exchange carriers other than the Bell companies and GTE with at least 20% of total holding company lines operated by companies that as of December 31, 1999 were certified to the Commission as rural carriers, may elect to pool up to the following amounts:</P> <P>(A) For a price cap holding company's predominantly non-rural filing entities (<E T="03">i.e.,</E> filing entities within which more than 50% of all lines are operated by telephone companies other than those that as of December 31, 1999 were certified to the Commission as rural telephone companies), the amount of the additional reductions to Average Traffic Sensitive Charge rates as defined in paragraph (l)(2) of this section, to the extent such reductions exceed 25% of the Local Switching element revenues (measured in terms of June 30, 2000 rates times 1999 base period demand);</P> <P>(B) For a price cap holding company's predominantly rural filing entities(<E T="03">i.e.,</E> filing entities with greater than 50% of lines operated by telephone companies that as of December 31, 1999 were certified to the Commission as rural telephone companies), the amount of the additional reductions to Average Traffic Sensitive Charge rates as defined in paragraph (l)(2) of this section.</P> <P>(2) Allocation of Pooled Local Switching Revenue to Certain CMT Elements</P> <P>(i) The pooled local switching revenue for each filing entity is shifted to the CMT basket within price caps. Pooled local switching revenue will not be included in calculations to determine the eligibility for interstate access universal service funding.</P> <P>(ii) Pooled local switching revenue will be capped on a revenue per line basis.</P> <P>(iii) Pooled local switching revenue is included in the total revenue for the CMT basket in calculating the X-factor reduction targeted to the traffic sensitive rate elements, and for companies qualified under paragraph (m)(1)(i) of this section, to pooled elements after the Average Traffic Sensitive Charge reaches the target level. For the purpose of targeting X-factor reductions, companies that allocate pooled local switching revenue to other filing entities pursuant to paragraph (m)(2)(vii) of this section shall include pooled local switching revenue in the total revenue of the CMT basket of the filing entity from which the pooled local switching revenue originated.</P> <P>(iv) Pooled local switching revenue shall be kept separate from CMT revenue in the CMT basket. CMT rate elements for each filing entity shall first be set based on CMT revenue per line without regard to the presence of pooled local switching revenue for each filing entity.</P> <P>(v) If the rates generated without regard to the presence of pooled local switching revenue for multi-line business PICC and/or multi-line businessSLC are below the nominal caps of $4.31 <PRTPAGE P="173"/>and $9.20, respectively, pooled amounts can be added to these rate elements to the extent permitted by the nominal caps.</P> <P>(vi) Notwithstanding the provisions of § 69.152(k) of this chapter, pooled local switching revenue is first added to the multi-line business SLC until the rate equals the nominal cap ($9.20) or the pooled local switching revenue is fully allocated. If pooled local switching revenue remains after applying amounts to the multi-line business SLC, notwithstanding the provisions of § 69.153 of this chapter, the remaining pooled local switching revenue may be added to the multi-line business PICC until the rate equals the nominal cap ($4.31) or the pooled local switching revenue is fully allocated. Unallocated pooled local switching revenue may still remain. For companies pooling pursuant to paragraph (m)(1)(i) of this section, these unallocated amounts may not be recovered from the CCL charge, the primary residential and single-line business SLC, a non-primary residential SLC, or from CMT elements in any other filing entity.</P> <P>(vii) For companies pooling pursuant to paragraph (m)(1)(ii) of this section, pooled local switching revenue that can not be allocated to the multi-line business PICC and multi-line business SLC rates within an individual filing entity may not be recovered from the CCL charge, primary residential and single-line business SLC or residential/single-line business SLC charges, but may be allocated to other filing entities within the holding company, and collected by adding these amounts to the multi-line business PICC and multi-line business SLC rates. The allocation of pooled local switching revenue among filing entities will be re-calculated at each annual filing. In subsequent annual filings, pooled local switching revenue that was allocated to another filing entity will be reallocated to the filing entity from where it originated, to the full extent permitted by the nominal caps of $9.20 and $4.31.</P> <P>(viii) Notwithstanding the provisions of § 69.152(k) of this chapter, these unallocated local switching revenues that cannot be recovered fully pursuant to paragraph (m)(2)(vii) of this section are first added to the multi-line business SLC of other filing entities until the resulting rate equals the nominal cap ($9.20) or the pooled local switching revenue for the holding company is fully allocated. If the pooled local switching revenue can be fully allocated to the multi-line business SLC, the amount is distributed to each filing entity with a rate below the nominal cap ($9.20) based on its below-cap multi-line business SLC revenue as a percentage of the total holding company's below-cap multi-line business SLC revenue.</P> <P>(ix) If pooled local switching revenue remains after applying amounts to the multi-line business SLC of all filing entities in the holding company, pooled local switching revenue may be added to the multi-line business PICC of other filing entities. Notwithstanding the provisions of § 69.153 of this chapter, the remaining pooled local switching revenue is distributed to each filing entity with a rate below the nominal cap ($4.31) based on its below-cap multi-line business PICC revenue as a percentage of the total holding company's below-cap multi-line business PICC revenue.</P> <P>(x) If pooled local switching revenue is added to the multi-line business SLC but not to the multi-line business PICC for a filing entity that qualified to deaverage SLCs without regard to pooled local switching revenue, the resulting SLC rates can still be deaveraged. Total pooled local switching revenue is added to the deaveraged zone 1 multi-line business SLC rate until the per line rate in zone 1 equals the rate in zone 2 or until the pooled local switching revenue is fully allocated to the deaveraged multi-line business SLC rate for zone 1. If pooled local switching revenue remains after the rate in zone 1 equals zone 2, the deaveraged rates of zone 1 and zone 2 are increased until the pooled local switching revenue is fully allocated to the deaveraged multi-line business SLC rates of zone 1 and 2 or until those rates reach the zone 3 multi-line business SLC rate level. This process continues until pooled local switching revenue is fully allocated to the zone deaveraged rates.</P> <P>(n) Establishment of the special access basket, effective July 1, 2000.<PRTPAGE P="174"/> </P> <P>(1) On the effective date, the PCI value for the special access basket, as defined in § 61.42(d)(5) shall be equal to the PCI for the trunking basket on the day preceding the establishment of the special access basket.</P> <P>(2) On the effective date, the API value for the special access basket, as defined in § 61.42(d)(5) shall be equal to the API for the trunking basket on the day preceding the establishment of the special access basket.</P> <P>(3) Service Category, Subcategory, and Density Zone SBIs and Upper Limits.</P> <P>(i) Interconnection, Tandem Switched Transport, and Signalling Interconnec- tion will retain the SBIs and upper limits and remain in the trunking basket.</P> <P>(ii) Audio/Video and Wideband will retain the SBIs and upper limits and be moved into the special access basket.</P> <P>(iii) For Voice Grade, the SBIs and upper limits in both baskets will be equal to the SBIs and upper limits in the existing trunking basket on the day preceding the establishment of the special access basket. Voice Grade density zones in the trunking basket will retain their indices and upper limits. Voice Grade density zones will be initialized in the special access basket when services are first offered in them.</P> <P>(iv) For High Cap/DDS, DS1, and DS3 category and subcategories, the SBIs and upper limits in both baskets will be equal to the SBIs and upper limits in the existing trunking basket on the day preceding the establishment of the special access basket. SBIs and upper limits for services that are in both combined density zones and either DTT/EF or special access density zones will be calculated by using weighted averages of the indices in the affected zones. </P> <P>(v) For each DTT/EF-related zone remaining in the trunking basket, the values will be calculated by taking the sum of the products of the DTT/EF revenues times the DTT/EF index (or upper limit) and the DTT/EF-related revenues in the combined zone times the combined index (or upper limit), and dividing by the total DTT/EF-related revenues for that zone.</P> <P>(vi) For each special access-related zone in the special access basket, the values will be calculated by taking the sum of the products of the special access revenues times the special access index (or upper limit) and the special access-related revenues in the combined zone times the combined index (or upper limit), and dividing by the total special access-related revenues for that zone.</P> <P>(o) Treatment of acquisitions of exchanges with different ATS Target Rates as set forth in § 61.3(qq):</P> <P>(1) In the event that a price cap local exchange carrier acquires a filing entity or portion thereof from a price cap local exchange carrier after July 1, 2000, and the price cap local exchange carrier did not have a binding and executed contract to purchase that filing entity or portion thereof as of April 1, 2000, those properties retain their pre-existing Target Rates as set forth in § 61.3(qq). If those properties are merged into a filing entity with a different Target Rate as set forth in § 61.3(qq), the Target Rate as set forth in § 61.3(qq) for the merged filing entity will be the weighted average of the Target Rates as set forth in § 61.3(qq) for the properties being combined into a single filing entity, with the average weighted by local switching minutes. When a property acquired as a result of a contract for purchase executed after April 1, 2000 is merged with $0.0095 Target Rate properties, the obligation to apply price cap reductions to reduce CCL, pursuant to § 61.45(b)(iii) does not apply to the properties purchased under contracts executed after April 1, 2000, but continues to apply to the other properties.</P> <P>(2) For sale of properties for which a holding company was, as of April 1, 2000, under a binding and executed contract to purchase but which close after June 30, 2000, but during tariff year 2000, and that are subject to the $0.0095 Target Rate as set forth in § 61.3(qq), the Average Traffic Sensitive Rate charged by the purchaser for that property will be the greater of $0.0095 or the <PRTPAGE P="175"/>Average Traffic Sensitive Rate for that property.</P> <CITA>[54 FR 19843, May 8, 1989, as amended at 55 FR 42384, Oct. 19, 1990; 56 FR 21617, May 10, 1991; 56 FR 55239, Oct. 25, 1991; 59 FR 10302, Mar. 4, 1994; 60 FR 19528, Apr. 19, 1995; 60 FR 52346, Oct. 6, 1995; 62 FR 31932, June 11, 1997; 64 FR 46590, Aug. 26, 1999; 65 FR 38699, June 21, 2000; 65 FR 57742, 57743, Sept. 26, 2000]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.49</SECTNO> <SUBJECT>Supporting information to be submitted with letters of transmittal for tariffs of carriers subject to price cap regulation.</SUBJECT> <P>(a) Each price cap tariff filing must be accompanied by supporting materials sufficient to calculate required adjustments to each PCI, API, and SBI pursuant to the methodologies provided in §§ 61.45, 61.46, and 61.47, as applicable.</P> <P>(b) Each price cap tariff filing that proposes rates that are within applicable bands established pursuant to § 61.47, and that results in an API value that is equal to or less than the applicable PCI value, must be accompanied by supporting materials sufficient to establish compliance with the applicable bands, and to calculate the necessary adjustment to the affected APIs and SBIs pursuant to §§ 61.46 and 61.47, respectively.</P> <P>(c) Each price cap tariff filing that proposes rates above the applicable band limits established in §§ 61.47 (e) must be accompanied by supporting materials establishing substantial cause for the proposed rates.</P> <P>(d) Each price cap tariff filing that proposes rates that will result in an API value that exceeds the applicable PCI value must be accompanied by:</P> <P>(1) An explanation of the manner in which all costs have been allocated among baskets; and</P> <P>(2) Within the affected basket, a cost assignment slowing down to the lowest possible level of disaggregation, including a detailed explanation of the reasons for the prices of all rate elements to which costs are not assigned.</P> <P>(e) Each price cap tariff filing that proposes restructuring of existing rates must be accompanied by supporting materials sufficient to make the adjustments to each affected API and SBI required by §§ 61.46(c) and 61.47(d), respectively.</P> <P>(f)(1) [Reserved]</P> <P>(2) Each tariff filing submitted by a price cap LEC that introduces a new loop-based service, as defined in § 61.3(pp) of this part—including a restructured unbundled basic service element (BSE), as defined in § 69.2(mm) of this chapter, that constitutes a new loop-based service—that is or will later be included in a basket, must be accompanied by cost data sufficient to establish that the new loop-based service or unbundled BSE will not recover more than a just and reasonable portion of the carrier's overhead costs.</P> <P>(3) A price cap LEC may submit without cost data any tariff filings that introduce new services, other than loop-based services.</P> <P>(4) A price cap LEC that has removed its corridor or interstate intraLATA toll services from its interexchange basket pursuant to § 61.42(d)(4)(ii), may submit its tariff filings for corridor or interstate intraLATA toll services without cost data.</P> <P>(g) Each tariff filing submitted by a local exchange carrier subject to price cap regulation that introduces a new loop-based service or a restructured unbundled basic service element (BSE), as defined in § 69.2(mm) of this chapter, that is or will later be included in a basket, or that introduces or changes the rates for connection charge subelements for expanded interconnection, as defined in § 69.121 of this chapter, must also be accompanied by:</P> <P>(1) The following, including complete explanations of the bases for the estimates.</P> <P>(i) A study containing a projection of costs for a representative 12 month period; and</P> <P>(ii) Estimates of the effect of the new tariff on the traffic and revenues from the service to which the new tariff applies, the carrier's other service classifications, and the carrier's overall traffic and revenues. These estimates must include the projected effects on the traffic and revenues for the same representative 12 month period used in paragraph (g)(1)(i) of this section.</P> <P>(2) <E T="03">Working papers and statistical data.</E> (i) Concurrently with the filing of any tariff change or tariff filing for a service not previously offered, the Chief, Tariff and Pricing Analysis Branch must be provided two sets of working <PRTPAGE P="176"/>papers containing the information underlying the data supplied in response to paragraph (h)(1) of this section, and a clear explanation of how the working papers relate to that information.</P> <P>(ii) All statistical studies must be submitted and supported in the form prescribed in § 1.363 of the Commission's rules.</P> <P>(h) Each tariff filing submitted by a local exchange carrier subject to price cap regulation that introduces or changes the rates for connection charge subelements for expanded interconnection, as defined in § 69.121 of this chapter, must be accompanied by cost data sufficient to establish that such charges will not recover more than a just and reasonable portion of the carrier's overhead costs.</P> <P>(i) [Reserved]</P> <P>(j) For a tariff that introduces a system of density pricing zones, as described in § 69.123 of this chapter, the carrier must, before filing its tariff, submit a density pricing zone plan including, <E T="03">inter alia,</E> documentation sufficient to establish that the system of zones reasonably reflects cost-related characteristics, such as the density of total interstate traffic in central offices located in the respective zones, and receive approval of its proposed plan.</P> <P>(k) In accordance with §§ 61.41 through 61.49, local exchange carriers subject to price cap regulation that elect to file their annual access tariff pursuant to section 204(a)(3) of the Communications Act shall submit supporting material for their interstate annual access tariffs, absent rate information, 90 days prior to July 1 of each year.</P> <P>(l) On each page of cost support material submitted pursuant to this section, the carrier shall indicate the transmittal number under which that page was submitted.</P> <CITA>[54 FR 19843, May 8, 1989, as amended at 55 FR 42384, Oct. 19, 1990; 56 FR 5956, Feb. 14, 1991; 56 FR 21617, May 10, 1991; 56 FR 33880, July 24, 1991; 57 FR 37730, Aug. 20, 1992; 57 FR 54331, Nov. 18, 1992; 58 FR 17167, Apr. 1, 1993; 58 FR 38536, July 19, 1993; 58 FR 48762, Sept. 17, 1993; 59 FR 10304, Mar. 4, 1994; 62 FR 4659, Jan. 31, 1997; 62 FR 5778, Feb. 7, 1997; 62 FR 42218, Aug. 6, 1997; 64 FR 46590, 46593, Aug. 26, 1999; 64 FR 51266, Sept. 22, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§§ 61.50-61.51</SECTNO> <RESERVED>[Reserved]</RESERVED> </SECTION> <SECTION> <SECTNO>§ 61.52</SECTNO> <SUBJECT>Form, size, type, legibility, etc.</SUBJECT> <P>(a) All tariff publications must be in loose-leaf form of size A4 (21 cm x 29.7 cm) or 8.5 x 11 inches (21.6 cm x 27.9 cm), and must be plainly printed in black print on white paper of durable quality. Less than 6-point type may not be used. Erasures or alterations in writing must not be made in any tariff publication filed with the Commission or in those copies posted for public convenience. A margin of no less than 2.5 cm (1 inch) in width must be allowed at the left edge of every tariff publication.</P> <P>(b) Pages of tariffs must be printed on one side only, and must be numbered consecutively and designated as “Original title page,” “Original page 1,” “Original page 2,” etc.</P> <P>(1) All such pages must show, in the upper left-hand corner the name of the issuing carrier; in the upper right-hand corner the FCC number of the tariff, with the page designation directly below; in the lower left-hand corner the issued date; in the lower right-hand corner the effective date; and at the bottom, center, the street address of the issuing officer. The carrier must also specify the issuing officer's title either at the bottom center of all tariff pages, or on the title page and check sheet only.</P> <P>(2) As an alternative, the issuing carrier may show in the upper left-hand corner the name of the issuing carrier, the title and street address of the issuing officer, and the issued date; and in the upper right-hand corner the FCC number of the tariff, with the page designation directly below, and the effective date. The carrier must specify the issuing officer's title in the upper left-hand corner of either all tariff pages, or on the title page and check sheet only. A carrier electing to place the information at the top of the page should annotate the bottom of each page to indicate the end of the material, e.g., a line, or the term “Printed in USA,” or “End”.</P> <P>(3) Only one format may be employed in a tariff publication.<PRTPAGE P="177"/> </P> <P>(c) Incumbent local exchange carriers shall file all tariff publications and associated documents, such as transmittal letters, requests for special permission, and supporting information, electronically in accordance with the requirements set forth in § 61.13 through § 61.17.</P> <CITA>[49 FR 40869, Oct. 18, 1984, as amended at 58 FR 44906, Aug. 25, 1993; 62 FR 5778, Feb. 7, 1997; 63 FR 35541, June 30, 1998]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.54</SECTNO> <SUBJECT>Composition of tariffs.</SUBJECT> <P>(a) Tariffs must contain in consecutive order: A title page; check sheet; table of contents; list of concurring, connecting, and other participating carriers; explanation of symbols and abbreviations; application of tariff; general rules (including definitions), regulations, exceptions and conditions; and rates. If the issuing carrier elects to add a section assisting in the use of the tariff, it should be placed immediately after the table of contents.</P> <P>(b) The title page of every tariff and supplement must show:</P> <P>(1) <E T="03">FCC number, indication of cancellations.</E> In the upper right-hand corner, the designation of the tariff or supplement as “FCC No. ————,” or “Supplement No. ———— to FCC No. ————,” and immediately below, the FCC number or numbers of tariffs or supplements cancelled thereby.</P> <P>(2) <E T="03">Name of carrier, class of service, geographical application, means of transmission.</E> The exact name of the carrier, and such other information as may be necessary to identify the carrier issuing the tariff publication; a brief statement showing each class of service provided; the geographical application; and the type of facilities used to provide service.</P> <P>(3) <E T="03">Expiration date.</E> Subject to § 61.59, when the entire tariff or supplement is to expire with a fixed date, the expiration date must be shown in connection with the effective date in the following manner. Changes in expiration date must be made pursuant to the notice requirements of § 61.58, unless otherwise authorized by the Commission. </P> <EXTRACT> <P>Expires at the end of <E T="72">XX</E> (date) unless sooner canceled, changed, or extended.</P> </EXTRACT> <P>(4) <E T="03">Title and address of issuing officer.</E> The title and street address of the officer issuing the tariff or supplement in the format specified in § 61.52.</P> <P>(5) <E T="03">Revised title page.</E> When a revised title page is issued, the following notation must be shown in connection with its effective date: </P> <EXTRACT> <FP>Original tariff effective —————————— (here show the effective date of the original tariff).</FP> </EXTRACT> <P>(c)(1)(i) The page immediately following the title page must be designated as “Original page 1” and captioned “Check Sheet.” When the original tariff is filed, the check sheet must show the number of pages contained in the tariff. For example, “Page 1 to 150, inclusive, of this tariff are effective as of the date shown.” When new pages are added, they must be numbered in continuing sequence, and designated as “Original page ———— .” For example, when the original tariff filed has 150 pages, the first page added after page 150 is to be designated as “Original page 151,” and the foregoing notation must be revised to include the added pages.</P> <P>(ii) Alternatively, the carrier is permitted to number its tariff pages, other than the check sheet, to reflect the section number of the tariff as well as the page. For example, under this system, pages in section 1 of the tariff would be numbered 1-1, 1-2, etc., and pages in section 2 of the tariff would be numbered 2-1, 2-2, etc. Issuing carriers shall utilize only one page numbering system throughout its tariff.</P> <P>(2) If pages are to be inserted between numbered pages, each such page must be designated as an original page and must bear the number of the immediately preceding page followed by an alpha or numeric suffix. For example, when two new pages are to be inserted between pages 44 and 45 of the tariff, the first inserted page must be designated as Original page 44A or 44.1 and the second inserted page as Original page 44B or 44.2. Issuing carriers may not utilize both the alpha and numeric systems in the same publication.</P> <P>(3)(i) When pages are revised, when new pages (including pages with letter or numeric suffix as set forth above) are added to the tariff, or when supplements are issued, the check sheet must be revised accordingly. Revised check sheets must indicate with an asterisk <PRTPAGE P="178"/>the specific pages added or revised. In addition to the notation in (1), the check sheet must list, under the heading “The original and revised pages named below (and Supplement No. ————) contain all changes from the original tariff that are in effect on the date shown,” all original pages in numerical order that have been added to the tariff and the pages which have been revised, including the revision number. For example:</P> <GPOTABLE CDEF="s50,xs25" COLS="2" OPTS="L2"> <BOXHD> <CHED H="1">Page</CHED> <CHED H="1">Number of revision except as indicated</CHED> </BOXHD> <ROW> <ENT I="01">Title</ENT> <ENT>1st</ENT> </ROW> <ROW> <ENT I="01">1</ENT> <ENT>*8th</ENT> </ROW> <ROW> <ENT I="01">3</ENT> <ENT>5th</ENT> </ROW> <ROW> <ENT I="01">5A</ENT> <ENT>*Orig.</ENT> </ROW> <ROW> <ENT I="01">10</ENT> <ENT>*8th</ENT> </ROW> <ROW> <ENT I="01">151</ENT> <ENT>Orig.</ENT> </ROW> <TNOTE>*New or Revised page.</TNOTE> </GPOTABLE> <P>(ii) On each page, the carrier shall indicate the transmittal number under which that page was submitted.</P> <P>(4) Changes in, and additions to tariffs must be made by reprinting the page upon which a change or addition is made. Such changed page is to be designated as a revised page, cancelling the page which it amends. For example, “First revised page 1 cancels original page 1,” or “Second revised page 2 cancels first revised page 2,” etc. When a revised page omits rates or regulations previously published on the page which it cancels, but such rates or regulations are published on another page, the revised page must make specific reference to the page on which the rates or regulations will be found. This reference must be accomplished by inserting a sentence at the bottom of the revised page that states “Certain rates (or regulations) previously found on this page can now be found on page ———.” In addition, the page on which the omitted material now appears must bear the appropriate symbol opposite such material, and make specific reference to the page from which the rates or regulations were transferred. This reference must be accomplished by inserting a sentence at the bottom of the other page that states “Certain rates (or regulations) on this page formerly appeared on page ————.”</P> <P>(5) Rejected pages must be treated as indicated in § 61.69.</P> <P>(d) <E T="03">Table of contents.</E> The table of contents must contain a full and complete statement showing the exact location and specifying the page or section and page numbers, where information by subjects under general headings will be found. If a tariff contains so small a volume of matter that its title page or its interior arrangement plainly discloses its contents, the table of contents may be omitted.</P> <P>(e) <E T="03">Tariff User's guide.</E> At its option, a carrier may include a section explaining how to use the tariff.</P> <P>(f) <E T="03">List of concurring carriers.</E> This list must contain the exact name or names of carriers concurring in the tariff, alphabetically arranged, and the name of the city or town in which the principal office of every such carrier is located. If there are no concurring carriers, then the statement “no concurring carriers” must be made at the place where the names of the concurring carriers would otherwise appear. If the concurring carriers are numerous, their names may be stated in alphabetical order in a separate tariff filed with the Commission by the issuing carrier. Specific reference to such separate tariff by FCC number must be made in the tariff at the place where such names would otherwise appear.</P> <P>(g) <E T="03">List of connecting carriers.</E> This list must contain the exact name or names of connecting carriers, alphabetically arranged, for which rates or regulations are published in the tariff, and the name of the city or town in which the principal office of every such carrier is located. If there are no connecting carriers, then the statement “no connecting carriers” must be made at the place where their names would otherwise appear. If connecting carriers are numerous, their names may be stated in alphabetical order in a separate tariff filed with the Commission by the issuing carrier. Specific reference to such separate tariff by FCC number must be made in the tariff at the place where such names would otherwise appear.</P> <P>(h) <E T="03">List of other participating carriers.</E> This list must contain the exact name of every other carrier subject to the Act engaging or participating in the <PRTPAGE P="179"/>communication service to which the tariff or supplement applies, together with the name of the city or town in which the principal office of such carrier is located. If there is no such other carrier, then the statement “no participating carriers” must be made at the place where the names of such other carriers would otherwise appear. If such other carriers are numerous, their names may be stated in alphabetical order in a separate tariff filed with the Commission by the issuing carrier. Specific reference must be made in the tariff at the place where such names would otherwise appear. The names of concurring and connecting carriers properly listed in a tariff published by any other participating carrier need not be repeated in this list.</P> <P>(i)(1) <E T="03">Symbols, reference marks, abbreviations.</E> The tariff must contain an explanation of symbols, reference marks, and abbreviations of technical terms used. The following symbols used in tariffs are reserved for the purposes indicated below: </P> <EXTRACT> <FP SOURCE="FP-1">Rto signify reduction.</FP> <FP SOURCE="FP-1">Ito signify increase.</FP> <FP SOURCE="FP-1">Cto signify changed regulation.</FP> <FP SOURCE="FP-1">Tto signify a change in text but no change in rate or regulation.</FP> <FP SOURCE="FP-1">Sto signify reissued matter.</FP> <FP SOURCE="FP-1">Mto signify matter relocated without change.</FP> <FP SOURCE="FP-1">Nto signify new rate or regulation.</FP> <FP SOURCE="FP-1">Dto signify discontinued rate or regulation.</FP> <FP SOURCE="FP-1">Zto signify a correction.</FP> </EXTRACT> <P>(2) The uniform symbols must be used as follows.</P> <P>(i) When a change of the same character is made in all or in substantially all matter in a tariff, it may be indicated at the top of the title page of the tariff or at the top of each affected page, in the following manner: “All rates in this tariff are increases,” or, “All rates on this page are reductions, except as otherwise indicated.”</P> <P>(ii) When a change of the same character is made in all or substantially all matters on a page or supplement, it may be indiated at the top of the page or supplement in the following manner: All rates on this page (or supplement) are increases,” or, “All rates on this page (or supplement) are reductions except as otherwise indicated.”</P> <P>(3) Items which have not been in effect 30 days when brought forward on revised pages must be shown as reissued, in the manner prescribed in § 61.54(i)(1). The number and original effective date of the tariff publication in which the matter was originally published must be associated with the reissued matter. Items which have been in effect 30 days or more and are brought forward without change on revised pages must not be shown as reissued items.</P> <P>(j) <E T="03">Rates and general rules, regulations, exceptions and conditions.</E> The general rules (including definitions), regulations, exceptions, and conditions which govern the tariff must be stated clearly and definitely. All general rules, regulations, exceptions or conditions which in any way affect the rates named in the tariff must be specified. A special rule, regulation, exception or condition affecting a particular item or rate must be specifically referred to in connection with such item or rate. Rates must be expressed in United States currency, per chargeable unit of service for all communication services, together with a list of all points of service to and from which the rates apply. They must be arranged in a simple and systematic manner. Complicated or ambiguous terminology may not be used, and no rate, rule, regulation, exception or condition shall be included which in any way attempts to substitute a rate, rule, regulation, exception or condition named in any other tariff.</P> <CITA>[49 FR 40869, Oct. 18, 1984, as amended at 64 FR 46591, Aug. 26, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.55</SECTNO> <SUBJECT>Contract-based tariffs.</SUBJECT> <P>(a) This section shall apply to price cap LECs permitted to offer contract-based tariffs under § 69.727(a) of this chapter.</P> <P>(b) Composition of contract-based tariffs shall comply with §§ 61.54(b) through (i).</P> <P>(c) Contract-based tariffs shall include the following:</P> <P>(1) The term of contract, including any renewal options;</P> <P>(2) A brief description of each of the services provided under the contract;</P> <P>(3) Minimum volume commitments for each service;<PRTPAGE P="180"/> </P> <P>(4) The contract price for each service or services at the volume levels committed to by the customers;</P> <P>(5) A general description of any volume discounts built into the contract rate structure; and</P> <P>(6) A general description of other classifications, practices, and regulations affecting the contract rate.</P> <CITA>[64 FR 51266, Sept. 22, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.58</SECTNO> <SUBJECT>Notice requirements.</SUBJECT> <P>(a) Every proposed tariff filing must bear an effective date and, except as otherwise provided by regulation, special permission, or Commission order, must be made on at least the number of days notice specified in this section.</P> <P>(1) Notice is accomplished by filing the proposed tariff changes with the Commission. Any period of notice specified in this section begins on and includes the date the tariff is received by the Commission, but does not include the effective date. If a tariff filing proposes changes governed by more than one of the notice periods listed below, the longest notice period will apply. In computing the notice period required, all days including Sundays and holidays must be counted.</P> <P>(2)(i) Local exchange carriers may file tariffs pursuant to the streamlined tariff filing provisions of section 204(a)(3) of the Communications Act. Such a tariff may be filed on 7 days’ notice if it proposes only rate decreases. Any other tariff filed pursuant to section 204(a)(3) of the Communications Act, including those that propose a rate increase or any change in terms and conditions, shall be filed on 15 days’ notice. Any tariff filing made pursuant to section 204(a)(3) of the Communications Act must comply with the applicable cost support requirements specified in this part.</P> <P>(ii) Local exchange carriers may elect not to file tariffs pursuant to section 204(a)(3) of the Communications Act. Any such tariffs shall be filed on at least 16 days’ notice.</P> <P>(iii) Except for tariffs filed pursuant to section 204(a)(3) of the Communications Act, the Chief, Common Carrier Bureau, may require the deferral of the effective date of any filing made on less than 120 days’ notice, so as to provide for a maximum of 120 days’ notice, or of such other maximum period of notice permitted by section 203(b) of the Communications Act, regardless of whether petitions under § 1.773 of this chapter have been filed.</P> <P>(3) Tariff filings proposing corrections or voluntarily deferring the effective date of a pending tariff revision must be made on at least 3 days’ notice, and may be filed notwithstanding the provisions of § 61.59. Corrections to tariff materials not yet effective cannot take effect before the effective date of the original material. Deferrals must take effect on or before the current effective date of the pending tariff revisions being deferred.</P> <P>(4) This subsection applies only to dominant carriers. If the tariff publication would increase any rate or charge, or would effectuate and authorized discountinuance, reduction or other impairment of service to any customer, the offering carrier must inform the affected customers of the content of the tariff publication. Such notification should be made in a form appropriate to the circumstance, and may include written notification, personal contact, or advertising in newspapers of general circulation.</P> <P>(b) Tariffs for new services filed by price cap local exchange carriers shall be filed on at least one day's notice.</P> <P>(c) Contract-based tariffs filed by price cap local exchange carriers pursuant to § 69.727(a) of this chapter shall be filed on at least one day's notice.</P> <P>(d)(1) A local exchange carrier that is filing a tariff revision to remove its corridor or interstate intraLATA toll services from its interexchange basket pursuant to § 61.42(d)(4)(ii) shall submit such filing on at least fifteen days’ notice.</P> <P>(2) A local exchange carrier that has removed its corridor and interstate intraLATA toll services from its interexchange basket pursuant to § 61.42(d)(4)(ii) shall file subsequent tariff filings for corridor or interstate intraLATA toll services on at least one day's notice.</P> <P>(e) <E T="03">Non-price cap carriers and/or services.</E> (1) Tariff filings in the instances specified in paragraphs (d)(1) (i), (ii), and (iii) of this section must be made on at least 15 days' notice.<PRTPAGE P="181"/> </P> <P>(i) Tariffs filed in the first instance by new carriers.</P> <P>(ii) Tariffs filings involving new rates and regulations not previously filed at, from, to or via points on new lines; at, from to or via new radio facilities; or for new points of radio communication.</P> <P>(iii) Tariff filings involving a change in the name of a carrier, a change in Vertical or Horizontal coordinates (or other means used to determine airline mileages), a change in the lists of mileages, a change in the lists of connecting, concurring or other participating carriers, text changes, or the imposition of termination charges calculated from effective tariff provisions. The imposition of termination charges does not include the initial filing of termination liability provisions.</P> <P>(2) Tariff filings involving a change in rate structure, a new offering, or a rate increase must be made on at least 45 days' notice.</P> <P>(3) Alascom, Inc. shall file its annual tariff revisions for its Common Carrier Services (Alascom Tariff F.C.C No. 11) on at least 35 days’ notice.</P> <P>(4) All tariff filings not specifically assigned a different period of public notice in this part must be made on at least 35 days' notice.</P> <P>(f) [Reserved]</P> <CITA>[49 FR 40869, Oct. 18, 1984, as amended at 54 FR 19844, May 8, 1989; 55 FR 42384, Oct. 19, 1990; 56 FR 1500, Jan. 15, 1991; 56 FR 5956, Feb. 14, 1991; 56 FR 55239, Oct. 25, 1991; 58 FR 36149, July 6, 1993; 59 FR 10304, Mar. 4, 1994; 62 FR 5778, Feb. 7, 1997; 64 FR 46591, Aug. 26, 1999; 64 FR 51266, Sept. 22, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.59</SECTNO> <SUBJECT>Effective period required before changes.</SUBJECT> <P>(a) Except as provided in § 61.58(a)(3) or except as otherwise authorized by the Commission, new rates or regulations must be effective for at least 30 days before a dominant carrier will be permitted to make any change.</P> <P>(b) Changes to rates and regulations that have not yet become effective, <E T="03">i.e.</E>, are pending, may not be made unless the effective date of the proposed changes is at least 30 days after the scheduled effective date of the pending revisions.</P> <P>(c) Changes to rates and regulations that have taken effect but have not been in effect for at least 30 days may not be made unless the scheduled effective date of the proposed changes is at least 30 days after the effective date of the existing regulations.</P> <CITA>[64 FR 46592, Aug. 26, 1999]</CITA> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart F—Specific Rules for Tariff Publications of Dominant and Nondominant Carriers</HD> <SECTION> <SECTNO>§ 61.66</SECTNO> <SUBJECT>Scope.</SUBJECT> <P>The rules in this subpart apply to all carriers, unless otherwise noted.</P> <CITA>[64 FR 46592, Aug. 26, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.68</SECTNO> <SUBJECT>Special notations.</SUBJECT> <P>(a) A tariff filing must contain a statement of the authority for any matter to be filed on less than the notice required in § 61.58. The following must be used: </P> <EXTRACT> <P>Issued on not less than — days' notice under authority of — (specific reference to the special permission, decision, order or section of these rules).</P> </EXTRACT> <FP>If all the matter in a tariff publication is to become effective on less than the notice required in § 61.58, specific reference to the Commission authority must be shown on the title page. If only a part of the tariff publication is to become effective on less than the notice required in § 61.58, reference to the Commission authority must appear on the same page(s), and be associated with the pertinent matter.</FP> <P>(b) When a portion of any tariff publication is issued in order to comply with the Commission order, the following notation must be associated with that portion of the tariff publication: </P> <EXTRACT> <P>In compliance with the order of the Federal Communications Commission in — (a specific citation to the applicable order should be made).</P> </EXTRACT> </SECTION> <SECTION> <SECTNO>§ 61.69</SECTNO> <SUBJECT>Rejection.</SUBJECT> <P>When a tariff publication is rejected by the Commission, its number may not be used again. This includes, but is not limited to, such publications as tariff numbers or specific page revision numbers. The rejected tariff publication may not be referred to as either cancelled or revised. Within five business days of the release date of the <PRTPAGE P="182"/>Commission's Order rejecting such tariff publication, the issuing carrier shall file tariff revisions removing the rejected material, unless the Commission's Order establishes a different date for this filing. The publication that is subsequently issued in lieu of the rejected tariff publication must bear the notation: </P> <EXTRACT> <P>In lieu of __, rejected by the Federal Communications Commission.</P> </EXTRACT> <CITA>[64 FR 46592, Aug. 26, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.72</SECTNO> <SUBJECT>Public information requirements.</SUBJECT> <P>(a) Issuing carriers must make available accurate and timely information pertaining to rates and regulations subject to tariff filing requirements.</P> <P>(b) Issuing carriers must, at a minimum, provide a telephone number for public inquiries about information contained in its tariffs. This telephone number should be made readily available to all interested parties.</P> <P>(c) Any issuing carrier that is an incumbent local exchange carrier, and chooses to establish an Internet web site, must make its tariffs available on that web site, in addition to the Commission's web site.</P> <CITA>[64 FR 46592, Aug. 26, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.73</SECTNO> <SUBJECT>Duplication of rates or regulations.</SUBJECT> <P>A carrier concurring in schedules of another carrier must not publish conflicting or duplicative rates or regulations.</P> </SECTION> <SECTION> <SECTNO>§ 61.74</SECTNO> <SUBJECT>References to other instruments.</SUBJECT> <P>(a) Except as otherwise provided in this and other sections of this part, no tariff publication filed with the Commission may make reference to any other tariff publication or to any other document or instrument.</P> <P>(b) Tariffs for end-on-end through services may reference the tariffs of other carriers participating in the offering.</P> <P>(c) Tariffs may reference concurrences for the purpose of starting where rates or regulations applicable to a service not governed by the tariff may be found.</P> <P>(d) A tariff for international services offered by a carrier that is subject to detariffing for domestic, interstate, interexchange services, may reference other documents or instruments concerning the carrier's detariffed domestic, interstate, interexchange service offerings. A tariff for international services may contain such a reference if, and only if, it is necessary to incorporate information regarding the carrier's detariffed domestic, interstate, interexchange services in order to calculate discounts and minimum revenue requirements for international services provided in combination with detariffed domestic, interstate, interexchange services. Notwithstanding any such reference to documents or instruments concerning the carrier's detariffed domestic, interstate, interexchange service offerings, a tariff for international services shall specify rates, terms and conditions for the international service.</P> <P>(e) Tariffs may reference other FCC tariffs that are in effect and on file with the Commission for purposes of determining mileage, or specifying the operating centers at which a specific service is available.</P> <P>(f) Tariffs may reference technical publications which describe the engineering, specifications, or other technical aspects of a service offering, provided the following conditions are satisfied:</P> <P>(1) The tariff must contain a general description of the service offering, including basic parameters and structural elements of the offering;</P> <P>(2) The technical publication includes no rates, regulatory terms, or conditions which are required to be contained in the tariff, and any revisions to the technical publication do not affect rates, regulatory terms, or conditions included in the tariff, and do not change the basic nature of the offering;</P> <P>(3) The tariff indicates where the technical publication can be obtained;</P> <P>(4) The referenced technical publication is publicly available before the tariff is scheduled to take effect; and</P> <P>(5) The issuing carrier regularly revises its tariff to refer to the current <PRTPAGE P="183"/>edition of the referenced technical publication.</P> <CITA>[49 FR 40869, Oct. 18, 1984, as amended at 61 FR 59366, Nov. 22, 1996; 64 FR 46592, Aug. 26, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.83</SECTNO> <SUBJECT>Consecutive numbering.</SUBJECT> <P>Carriers should file tariff publications under consecutive FCC numbers. If this cannot be done, a memorandum containing an explanation of the missing number or numbers must be submitted. Supplements to a tariff must be numbered consecutively in a separate series.</P> <CITA>[49 FR 40869, Oct. 18, 1984. Redesignated at 64 FR 46591, Aug. 26, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.86</SECTNO> <SUBJECT>Supplements.</SUBJECT> <P>A carrier may not file a supplement except to suspend or cancel a tariff publication, or to defer the effective date of pending tariff revisions. A carrier may file a supplement for the voluntary deferral of a tariff publication.</P> <CITA>[64 FR 46591, Aug. 26, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.87</SECTNO> <SUBJECT>Cancellation of tariffs.</SUBJECT> <P>(a) A carrier may cancel an entire tariff. Cancellation of a tariff automatically cancels every page and supplement to that tariff except for the canceling Title Page or first page.</P> <P>(1) If the existing service(s) will be provided under another carrier's tariff, then</P> <P>(i) The carrier whose tariff is being canceled must revise the Title Page or the first page of its tariff indicating that the tariff is no longer effective, or</P> <P>(ii) The carrier under whose tariff the service(s) will be provided must revise the Title Page or first page of the tariff to be canceled, using the name and numbering shown in the heading of the tariff to be canceled, indicating that the tariff is no longer effective. This carrier must also file with the Commission the new tariff provisions reflecting the service(s) being canceled. Both filings must be effective on the same date and may be filed under the same transmittal.</P> <P>(2) If a carrier canceling its tariff intends to cease to provide existing service, then it must revise the Title Page or first page of its tariff indicating that the tariff is no longer effective.</P> <P>(3) A carrier canceling its tariff, as described in this section, must comply with § 61.22 or §§ 61.54(b)(1) and 61.54(b)(5), as applicable.</P> <P>(b) When a carrier cancels a tariff as described in this section, the canceling Title Page or the first page of the canceled tariff must show where all rates and regulations will be found except for paragraph (c) of this section. The Title Page or first page of the new tariff must indicate the name of the carrier and tariff number where the canceled material had been found.</P> <P>(c) When a carrier ceases to provide service(s) without a successor, it must cancel its tariff pursuant to the notice requirements of § 61.23 or § 61.58, as applicable, unless otherwise authorized by the Commission.</P> <CITA>[64 FR 46591, Aug. 26, 1999]</CITA> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart G—Concurrences</HD> <SECTION> <SECTNO>§ 61.131</SECTNO> <SUBJECT>Scope.</SUBJECT> <P>Sections 61.132 through 61.136 apply to a carrier which must file concurrences reflecting rates and regulations for through service provided in conjunction with other carriers and to a carrier which has chosen, as an alternative to publishing its own tariff, to arrange concurrence in an effective tariff of another carrier. Limited or partial concurrences will not be permitted.</P> </SECTION> <SECTION> <SECTNO>§ 61.132</SECTNO> <SUBJECT>Method of filing concurrences.</SUBJECT> <P>A carrier proposing to concur in another carrier's effective tariff must deliver two copies of the concurrence to the issuing carrier in whose favor the concurrence is issued. The concurrence must be signed by an officer or agent of the carrier executing the concurrence, and must be numbered consecutively in a separate series from its FCC tariff numbers. At the same time the issuing carrier revises its tariff to reflect such a concurrence, it must submit both copies of the concurrence to the Commission. The concurrence must bear the same effective date as the date of the tariff filing reflecting the concurrence. Nondominant issuing carriers shall file revisions reflecting concurrences in their tariffs on the notice period specified in § 61.23 of this part. <PRTPAGE P="184"/>Dominant issuing carriers shall file concurrences in their tariffs on the notice periods specified in § 61.58(a)(2) or § 61.58(e)(1)(iii) of this part.</P> <CITA>[49 FR 40869, Oct. 18, 1984, as amended at 64 FR 46592, Aug. 26, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.133</SECTNO> <SUBJECT>Format of concurrences.</SUBJECT> <P>(a) Concurrences must be issued in the following format:</P> <HD SOURCE="HD1">Concurrence</HD> <EXTRACT> <FP>F.C.C. Concurrence No. ————</FP> <FP>(Cancels F.C.C. Concurrence No. ——</FP> <FP>(Name of Carrier ——————)</FP> <FP>(Post Office Address ——————)</FP> <FP>(Date) ———————— 19—.</FP> <FP SOURCE="FP-2">Secretary,</FP> <FP SOURCE="FP-2"> <E T="03">Federal Communications Commission, Washington, D.C. 20554.</E> </FP> <FP>This is to report that (name of concurring carrier) assents to and concurs in the tariffs described below. (Name of concurring carrier) thus makes itself a party to these tariffs and obligates itself (and its connecting carriers) to observe every provision in them, until a notice of revocation is filed with the Commission and delivered to the issuing carrier.</FP> <FP>This concurrence applies to interstate (and foreign) communication:</FP> <P>1. Between the different points on the concurring carrier's own system;</P> <P>2. Between all points on the concurring carrier's system and the systems of its connecting carriers; and</P> <P>3. Between all points on the system of the concurring carrier and the systems of its connecting carriers on the one hand, and, on the other hand, all points on the system of the carrier issuing the tariff or tariffs listed below and the systems of its connecting carriers and other carriers with which through routes have been established. </P> <NOTE> <HD SOURCE="HED">(Note:</HD> <P>Any of the above numbered paragraphs may be omitted or the wording modified to state the points to which the concurrence applies.)</P> </NOTE> </EXTRACT> <HD SOURCE="HD1">Tariff</HD> <EXTRACT> <P>(Here describe the tariff or tariffs concurred in by the carrier, specifying FCC number, title, date of issuance, and date effective. Example: A.B.C. Communications Company, Tariff FCC No. 1, Interstate Telegraph Message Service, Issued January 1, 1983, Effective April 1, 1983).</P> <P>Cancels FCC Concurrence No. ——, effective ——, 19—. </P> <FP SOURCE="FP-DASH">(Name of concurring carrier)</FP> <FP SOURCE="FP-DASH">By</FP> <FP SOURCE="FP-DASH">(Title)</FP> </EXTRACT> <P>(b) No material is to be included in a concurrence other than that indicated in the above-prescribed form, unless specially authorized by the Commission. A concurrence in any tariff so described will be deemed to include all amendments and successive issues which the issuing carrier may make and file. All such amendments and successive issues will be binding between customers and carriers. Between carriers themselves, however, the filing by the issuing carrier of an amendment or successive issue with the Commission must not imply or be construed to imply an agreement to the filing by concurring carriers. Such filings do not affect the contractual rights or remedies of any concurring carrier(s) which have not, by contract or otherwise, specifically consented in advance to such amendment or successive issue.</P> </SECTION> <SECTION> <SECTNO>§ 61.134</SECTNO> <SUBJECT>Concurrences for through services.</SUBJECT> <P>A carrier filing rates or regulations for through services between points on its own system and points on another carrier's system (or systems), or between points on another carrier's system (or systems), must list all concurring, connecting or other participating carriers as provided in § 61.54 (f), (g) and (h). A concurring carrier must tender a properly executed instrument of concurrence to the issuing carrier. If rates and regulations of the other carriers engaging in the through service(s) are not specified in the issuing carrier's tariff, that tariff must state where the other carrier's rates and regulations can be found. Such reference(s) must contain the FCC number(s) of the referenced tariff publication(s), the exact name(s) of the carrier(s) issuing such tariff publication(s), and must clearly state how the rates and regulations in the separate publications apply.</P> </SECTION> <SECTION> <SECTNO>§ 61.135</SECTNO> <SUBJECT>Concurrences for other purposes.</SUBJECT> <P>When an issuing carrier permits another carrier to concur in its tariff, the issuing carrier's tariff must state the concurring carrier's rates and points of service.</P> </SECTION> <SECTION> <PRTPAGE P="185"/> <SECTNO>§ 61.136</SECTNO> <SUBJECT>Revocation of concurrences.</SUBJECT> <P>A concurrence may be revoked by a revocation notice or cancelled by a new concurrence. A revocation notice or a new concurrence, if less broad in scope than the concurrence it cancels, must bear an effective date not less than 45 days after its receipt by the Commission. A revocation notice is not given a serial number, but must specify the number of the concurrence to be revoked and the name of the carrier in whose favor the concurrence was issued. It must be in the following format:</P> <HD SOURCE="HD1">Revocation Notice</HD> <EXTRACT> <FP>(Name of carrier ——————)</FP> <FP>(Post office address ——————)</FP> <FP>(Date) ————————, 19—.</FP> <FP SOURCE="FP-2">Secretary,</FP> <FP SOURCE="FP-2"> <E T="03">Federal Communications Commission, Washington, D.C. 20554.</E> </FP> <P>Effective ——, 19— FCC Concurrence No. —, issued by (Name of concurring carrier) in favor of (Name of issuing carrier) is hereby cancelled and revoked. Rates and regulations of (Name of concurring carrier) and its connecting carriers will thereafter be found in Tariff FCC No. — issued by —— (If the concurring carrier has ceased operations, the revocation notice must so indicate.) </P> <FP SOURCE="FP-DASH">(Name of carrier)</FP> <FP SOURCE="FP-DASH">By</FP> <FP SOURCE="FP-DASH">(Title)</FP> </EXTRACT> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart H—Applications for Special Permission</HD> <SECTION> <SECTNO>§ 61.151</SECTNO> <SUBJECT>Scope.</SUBJECT> <P>Sections 61.152 and 61.153 set forth the procedures to be followed by a carrier applying for a waiver of any of the rules in this part.</P> <CITA>[55 FR 19173, May 8, 1990]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.152</SECTNO> <SUBJECT>Terms of applications and grants.</SUBJECT> <P>Applications for special permission must contain:</P> <P>(a) A detailed description of the tariff publication proposed to be put into effect;</P> <P>(b) A statement citing the specific rules and the grounds on which waiver is sought;</P> <P>(c) A showing of good cause; and</P> <P>(d) A statement as to the date and method of filing the original of the application for special permission as required by § 61.153(b) and the date and method of filing the copies required by § 61.153 (a) and (c).</P> <FP>If approved, the carrier must comply with all terms and use all authority specified in the grant. If a carrier elects to use less than the authority granted, it must apply to the Commission for modification of the original grant. If a carrier elects not to use the authority granted within sixty days of its effective date, the original grant will be automatically cancelled by the Commission.</FP> <CITA>[55 FR 19173, May 8, 1990]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.153</SECTNO> <SUBJECT>Method of filing applications.</SUBJECT> <P>(a) An application for special permission must be addressed to “Secretary, Federal Communication Commission, Washington, DC 20554.” The date on which the application is received by the Secretary of the Commission (or the Mail Room where submitted by mail) is considered the official filing date.</P> <P>(b) In addition, except for issuing carriers filing tariffing fees electronically, for all special permission applications requiring fees as set forth in part 1, subpart G of this chapter, the issuing carrier must submit the original of the application letter (without attachments), FCC Form 159, and the appropriate fee to the Mellon Bank, Pittsburgh, PA at the address set forth in § 1.1105 of this chapter. Issuing carriers submitting tariffing fees electronically should submit the Form 159 and the original cover letter to the Secretary of the Commission in lieu of the Mellon Bank. The Form 159 should display the Electronic Audit Code in the box in the upper left hand corner marked “reserved.” Issuing carriers should submit these fee materials on the same date as the submission in paragraph (a) of this section.</P> <P>(c) In addition to the requirements set forth in paragraphs (a) and (b) of this section, the issuing carrier must send a copy of the application letter with all attachments to the Secretary, Federal Communications Commission and a separate copy with all attachments to the Chief, Tariff and Pricing Analysis Branch. If a carrier applies for <PRTPAGE P="186"/>special permission to revise joint tariffs, the application must state that it is filed on behalf of all carriers participating in the affected service. Applications must be numbered consecutively in a series separate from FCC tariff numbers, bear the signature of the officer or agent of the carrier, and be in the following format: </P> <EXTRACT> <FP SOURCE="FP-1">Application No.</FP> <FP SOURCE="FP-1">(Date)</FP> <FP SOURCE="FP-1">Secretary</FP> <FP SOURCE="FP-1">Federal Communications Commission</FP> <FP SOURCE="FP-1">Washington, DC 20554.</FP> <FP SOURCE="FP-1">Attention: Common Carrier Bureau (here provide the statements required by § 61.152).</FP> <FP SOURCE="FP-DASH">(Exact name of carrier)</FP> <FP SOURCE="FP-DASH">(Name of officer or agent)</FP> <FP SOURCE="FP-DASH">(Title of officer or agent)</FP> </EXTRACT> <CITA>[55 FR 19173, May 8, 1990, as amended at 64 FR 46592, 46593, Aug. 26, 1999]</CITA> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart I—Adoption of Tariffs and Other Documents of Predecessor Carriers</HD> <SECTION> <SECTNO>§ 61.171</SECTNO> <SUBJECT>Adoption notice.</SUBJECT> <P>When a carrier's name is changed, or its operating control transferred from one carrier to another in whole or in part, the successor carrier must file tariff revisions to reflect the name change. The successor carrier may either immediately reissue the entire tariff in its own name, or immediately file an adoption notice. Within 35 days of filing an adoption notice, the successor must reissue the entire tariff in its own name. The reissued tariff must be numbered in the series of the successor carrier, and must contain all original pages without changes in regulations or rates. The transmittal letter must state the tariff is being filed to show a change in the carrier's name pursuant to § 61.171 of the Commission's Rules. The adoption notice, if used, must read as follows: </P> <EXTRACT> <P>The (Exact name of successor carrier or receiver) here adopts, ratifies and makes its own in every respect, all applicable tariffs and amendments filed with the Federal Communications Commission by (predecessor) prior to (date). </P> </EXTRACT> </SECTION> <SECTION> <SECTNO>§ 61.172</SECTNO> <SUBJECT>Changes to be incorporated in tariffs of successor carrier.</SUBJECT> <P>When only a portion of properties is transferred to a successor carrier, that carrier must incorporate in its tariff the rates applying locally between points on the transferred portion. Moreover, the predecessor carrier must simultaneously cancel the corresponding rates from its tariffs, and reference the FCC number of the successor carrier's tariff containing the rates that will thereafter apply.</P> </SECTION> </SUBPART> <SUBPART> <HD SOURCE="HED">Subpart J—Suspensions</HD> <SECTION> <SECTNO>§ 61.191</SECTNO> <SUBJECT>Carrier to file supplement when notified of suspension.</SUBJECT> <P>If a carrier is notified by the Commission that its tariff publication has been suspended, the carrier must file, within five business days from the release date of the suspension order, a consecutively numbered supplement without an effective date, which specifies the schedules which have been suspended.</P> <CITA>[64 FR 46593, Aug. 26, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 61.192</SECTNO> <SUBJECT>Contents of supplement announcing suspension.</SUBJECT> <P>(a) A supplement announcing a suspension by the Commission must specify the term of suspension imposed by the Commission.</P> <P>(b) A supplement announcing a suspension of either an entire tariff or a part of a tariff publication, must specify the applicable tariff publication effective during the period of suspension.</P> </SECTION> <SECTION> <SECTNO>§ 61.193</SECTNO> <SUBJECT>Vacation of suspension order; supplements announcing same; etc.</SUBJECT> <P>If the Commission vacates a suspension order, the affected carrier must issue a supplement or revised page stating the Commission's action as well as the lawful schedules.</P> </SECTION> </SUBPART> </PART> <PART> <PRTPAGE P="187"/> <EAR>Pt. 63</EAR> <HD SOURCE="HED">PART 63—EXTENSION OF LINES, NEW LINES, AND DISCONTINUANCE, REDUCTION, OUTAGE AND IMPAIRMENT OF SERVICE BY COMMON CARRIERS; AND GRANTS OF RECOGNIZED PRIVATE OPERATING AGENCY STATUS</HD> <CONTENTS> <SUBJGRP> <HD SOURCE="HED">Extensions and Supplements</HD> <SECHD>Sec.</SECHD> <SECTNO>63.01</SECTNO> <SUBJECT>Authority for all domestic common carriers.</SUBJECT> <SECTNO>63.02</SECTNO> <SUBJECT>Exemptions for extensions of lines and for systems for the delivery of video programming.</SUBJECT> <SECTNO>63.09</SECTNO> <SUBJECT>Definitions applicable to international Section 214 authorizations.</SUBJECT> <SECTNO>63.10</SECTNO> <SUBJECT>Regulatory classification of U.S. international carriers.</SUBJECT> <SECTNO>63.11</SECTNO> <SUBJECT>Notification by and prior approval for U.S. international carriers that are or propose to become affiliated with a foreign carrier.</SUBJECT> <SECTNO>63.12</SECTNO> <SUBJECT>Processing of international Section 214 applications.</SUBJECT> <SECTNO>63.13</SECTNO> <SUBJECT>Procedures for modifying regulatory classification of U.S. international carriers from dominant to non-dominant.</SUBJECT> <SECTNO>63.14</SECTNO> <SUBJECT>Prohibition on agreeing to accept special concessions.</SUBJECT> <SECTNO>63.16</SECTNO> <SUBJECT>Switched services over private lines. </SUBJECT> <SECTNO>63.17</SECTNO> <SUBJECT>Special provisions for U.S. international common carriers.</SUBJECT> <SECTNO>63.18</SECTNO> <SUBJECT>Contents of applications for international common carriers.</SUBJECT> <SECTNO>63.19</SECTNO> <SUBJECT>Special procedures for discontinuances of international services.</SUBJECT> <SECTNO>63.20</SECTNO> <SUBJECT>Copies required; fees; and filing periods for international service providers.</SUBJECT> <SECTNO>63.21</SECTNO> <SUBJECT>Conditions applicable to all international Section 214 authorizations.</SUBJECT> <SECTNO>63.22</SECTNO> <SUBJECT>Facilities-based international common carriers.</SUBJECT> <SECTNO>63.23</SECTNO> <SUBJECT>Resale-based international common carriers.</SUBJECT> <SECTNO>63.24</SECTNO> <SUBJECT>Pro forma assignments and transfers of control.</SUBJECT> <SECTNO>63.25</SECTNO> <SUBJECT>Special provisions relating to temporary or emergency service by international carriers.</SUBJECT> </SUBJGRP> <SUBJGRP> <HD SOURCE="HED">General Provisions Relating to All Applications Under Section 214</HD> <SECTNO>63.50</SECTNO> <SUBJECT>Amendment of applications.</SUBJECT> <SECTNO>63.51</SECTNO> <SUBJECT>Additional information.</SUBJECT> <SECTNO>63.52</SECTNO> <SUBJECT>Copies required; fees; and filing periods.</SUBJECT> <SECTNO>63.53</SECTNO> <SUBJECT>Form.</SUBJECT> </SUBJGRP> <SUBJGRP> <HD SOURCE="HED">Discontinuance, Reduction, Outage and Impairment</HD> <SECTNO>63.60</SECTNO> <SUBJECT>Definitions.</SUBJECT> <SECTNO>63.61</SECTNO> <SUBJECT>Applicability.</SUBJECT> <SECTNO>63.62</SECTNO> <SUBJECT>Type of discontinuance, reduction, or impairment of telephone or telegraph service requiring formal application.</SUBJECT> <SECTNO>63.63</SECTNO> <SUBJECT>Emergency discontinuance, reduction, or impairment of service.</SUBJECT> <SECTNO>63.65</SECTNO> <SUBJECT>Closure of public toll station where another toll station of applicant in the community will continue service.</SUBJECT> <SECTNO>63.66</SECTNO> <SUBJECT>Closure of or reduction of hours of service at telephone exchanges at military establishments.</SUBJECT> <SECTNO>63.71</SECTNO> <SUBJECT>Procedures for discontinuance, reduction or impairment of service by domestic carriers.</SUBJECT> <SECTNO>63.90</SECTNO> <SUBJECT>Publication and posting of notices.</SUBJECT> <SECTNO>63.100</SECTNO> <SUBJECT>Notification of service outage.</SUBJECT> </SUBJGRP> <SUBJGRP> <HD SOURCE="HED">Contents of Applications; Examples</HD> <SECTNO>63.500</SECTNO> <SUBJECT>Contents of applications to dismantle or remove a trunk line.</SUBJECT> <SECTNO>63.501</SECTNO> <SUBJECT>Contents of applications to sever physical connection or to terminate or suspend interchange of traffic with another carrier.</SUBJECT> <SECTNO>63.504</SECTNO> <SUBJECT>Contents of applications to close a public toll station where no other such toll station of the applicant in the community will continue service and where telephone toll service is not otherwise available to the public through a telephone exchange connected with the toll lines of a carrier.</SUBJECT> <SECTNO>63.505</SECTNO> <SUBJECT>Contents of applications for any type of discontinuance, reduction, or impairment of telephone service not specifically provided for in this part.</SUBJECT> <SECTNO>63.601</SECTNO> <SUBJECT>Contents of applications for authority to reduce the hours of service of public coast stations under the conditions specified in § 63.70.</SUBJECT> </SUBJGRP> <SUBJGRP> <HD SOURCE="HED">Request for Designation as a Recognized Private Operating Agency</HD> <SECTNO>63.701</SECTNO> <SUBJECT>Contents of application.</SUBJECT> <SECTNO>63.702</SECTNO> <SUBJECT>Form.</SUBJECT> </SUBJGRP> </CONTENTS> <AUTH> <HD SOURCE="HED">Authority:</HD> <P>Sections 1, 4(i), 4(j), 10, 11, 201-205, 214, 218, 403 and 651 of the Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 154(j), 160, 201-205, 214, 218, 403, and 571, unless otherwise noted.</P> </AUTH> <SOURCE> <HD SOURCE="HED">Source:</HD> <P>28 FR 13229, Dec. 5, 1963, unless otherwise noted.</P> </SOURCE> <SUBJGRP> <HD SOURCE="HED">Extensions and Supplements</HD> <SECTION> <SECTNO>§ 63.01</SECTNO> <SUBJECT>Authority for all domestic common carriers.</SUBJECT> <P>(a) Any party that would be a domestic interstate communications common carrier is authorized to provide domestic, interstate services to any domestic point and to construct, acquire, or operate any domestic transmission <PRTPAGE P="188"/>line as long as it obtains all necessary authorizations from the Commission for use of radio frequencies. This authority does not apply to acquisitions of corporate control, which are not limited to acquisitions of equity ownership, such as stock or partnership interests, and which include actual working control by whatever manner exercised (such as, for example, by veto power, controlling interest in a board of directors, or other shareholder agreement provisions).</P> <P>(b) Domestic common carriers subject to this section shall not engage in any line construction that may have a significant effect on the environment as defined in § 1.1307 of this chapter without prior compliance with the Commission's environmental rules. See § 1.1312 of this chapter.</P> <CITA>[64 FR 39939, July 23, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 63.02</SECTNO> <SUBJECT>Exemptions for extensions of lines and for systems for the delivery of video programming.</SUBJECT> <P>(a) Any common carrier is exempt from the requirements of section 214 of the Communications Act of 1934, as amended, for the extension of any line.</P> <P>(b) A common carrier shall not be required to obtain a certificate under section 214 of the Communications Act of 1934 with respect to the establishment or operation of a system for the delivery of video programming.</P> <CITA>[64 FR 39939, July 23, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 63.09</SECTNO> <SUBJECT>Definitions applicable to international Section 214 authorizations.</SUBJECT> <P>The following definitions shall apply to §§ 63.09-63.24 of this part, unless the context indicates otherwise:</P> <P>(a) <E T="03">Facilities-based carrier</E> means a carrier that holds an ownership, indefeasible-right-of-user, or leasehold interest in bare capacity in the U.S. end of an international facility, regardless of whether the underlying facility is a common carrier or non-common carrier submarine cable or a satellite system.</P> <P>(b) <E T="03">Control</E> includes actual working control in whatever manner exercised and is not limited to majority stock ownership. <E T="03">Control</E> also includes direct or indirect control, such as through intervening subsidiaries.</P> <P>(c) <E T="03">Special concession</E> is defined as in § 63.14(b) of this part.</P> <P>(d) <E T="03">Foreign carrier</E> is defined as any entity that is authorized within a foreign country to engage in the provision of international telecommunications services offered to the public in that country within the meaning of the International Telecommunication Regulations, see Final Acts of the World Administrative Telegraph and Telephone Conference, Melbourne, 1988 (WATTC-88), Art. 1, which includes entities authorized to engage in the provision of domestic telecommunications services if such carriers have the ability to originate or terminate telecommunications services to or from points outside their country.</P> <P>(e) Two entities are <E T="03">affiliated</E> with each other if one of them, or an entity that controls one of them, directly or indirectly owns more than 25 percent of the capital stock of, or controls, the other one.</P> <P>Also, a U.S. carrier is <E T="03">affiliated</E> with two or more foreign carriers if the foreign carriers, or entities that control them, together directly or indirectly own more than 25 percent of the capital stock of, or control, the U.S. carrier and those foreign carriers are parties to, or the beneficiaries of, a contractual relation (e.g., a joint venture or market alliance) affecting the provision or marketing of international basic telecommunications services in the United States.</P> <P>(f) <E T="03">Market power</E> means sufficient market power to affect competition adversely in the U.S. market. </P> <NOTE> <HD SOURCE="HED">Note 1:</HD> <P>The assessment of “capital stock” ownership will be made under the standards developed in Commission case law for determining such ownership. See, e.g., Fox Television Stations, Inc., 10 FCC Rcd 8452 (1995). “Capital stock” includes all forms of equity ownership, including partnership interests.</P> </NOTE> <NOTE> <HD SOURCE="HED">Note 2:</HD> <P>Ownership and other interests in U.S. and foreign carriers will be attributed to their holders and deemed cognizable pursuant to the following criteria: Attribution of ownership interests in a carrier that are held indirectly by any party through one or more intervening corporations will be determined by successive multiplication of the ownership percentages for each link in the vertical ownership chain and application of the relevant attribution benchmark to the resulting product, except that wherever the ownership percentage for any link in the <PRTPAGE P="189"/>chain exceeds 50 percent, it shall not be included for purposes of this multiplication. For example, if A owns 30 percent of company X, which owns 60 percent of company Y, which owns 26 percent of “carrier,” then X's interest in “carrier” would be 26 percent (the same as Y's interest because X's interest in Y exceeds 50 percent), and A's interest in “carrier” would be 7.8 percent (0.30 × 0.26). Under the 25 percent attribution benchmark, X's interest in “carrier” would be cognizable, while A's interest would not be cognizable.</P> </NOTE> <CITA>[64 FR 19062, Apr. 19, 1999]</CITA> </SECTION> <SECTION> <SECTNO>§ 63.10</SECTNO> <SUBJECT>Regulatory classification of U.S. international carriers.</SUBJECT> <P>(a) Unless otherwise determined by the Commission, any party authorized to provide an international communications service under this part shall be classified as either dominant or non-dominant for the provision of particular international communications services on particular routes as set forth in this section. The rules set forth in this section shall also apply to determinations of regulatory status pursuant to §§ 63.11 and 63.13. For purposes of paragraphs (a)(2) and (a)(3) of this section, the relevant markets on the foreign end of a U.S. international route include: international transport facilities or services, including cable landing station access and backhaul facilities; inter-city facilities or services; and local access facilities or services on the foreign end of a particular route.</P> <P>(1) A U.S. carrier that has no affiliation with, and that itself is not, a foreign carrier in a particular country to which it provides service (i.e., a destination country) shall presumptively be considered non-dominant for the provision of international communications services on that route;</P> <P>(2) Except as provided in paragraph (a)(4) of this section, a U.S. carrier that is, or that has or acquires an affiliation with a foreign carrier that is a monopoly provider of communications services in a relevant market in a destination country shall presumptively be classified as dominant for the provision of international communications services on that route; and</P> <P>(3) A U.S. carrier that is, or that has or acquires an affiliation with a foreign carrier that is not a monopoly provider of communications services in a relevant market in a destination country and that seeks to be regulated as non-dominant on that route bears the burden of submitting information to the Commission sufficient to demonstrate that its foreign affiliate lacks sufficient market power on the foreign end of the route to affect competition adversely in the U.S. market. If the U.S. carrier demonstrates that the foreign affiliate lacks 50 percent market share in the international transport and the local access markets on the foreign end of the route, the U.S. carrier shall presumptively be classified as non-dominant.</P> <P>(4) A carrier that is authorized under this part to provide to a particular destination an international switched service, and that provides such service solely through the resale of an unaffiliated U.S. facilities-based carrier's international switched services (either directly or indirectly through the resale of another U.S. resale carrier's international switched services), shall presumptively be classified as non-dominant for the provision of the authorized service. A carrier regulated as non-dominant pursuant to this subparagraph shall notify the Commission at any time that it begins to provide such service through the resale of an affiliated U.S. facilities-based carrier's international switched services. The carrier will be deemed a dominant carrier on the route absent a Commission finding that the carrier otherwise qualifies for non-dominant regulation pursuant to this section.</P> <P>(b) Any party that seeks to defeat the presumptions in paragraph (a) of this section shall bear the burden of proof upon any issue it raises as to the proper classification of the U.S. carrier.</P> <P>(c) Any carrier classified as dominant for the provision of particular services on particular routes under this section shall comply with the following requirements in its provision of such services on each such route:</P> <P>(1) File international service tariffs pursuant to § 61.28 of this chapter.</P> <P>(2) Provide services as an entity that is separate from its foreign carrier affiliate, in compliance with the following requirements:<PRTPAGE P="190"/> </P> <P>(i) The authorized carrier shall maintain separate books of account from its affiliated foreign carrier. These separate books of account do not need to comply with Part 32 of this chapter; and</P> <P>(ii) The authorized carrier shall not jointly own transmission or switching facilities with its affiliated foreign carrier. Nothing in this section prohibits the U.S. carrier from sharing personnel or other resources or assets wit