[Federal Register Volume 77, Number 157 (Tuesday, August 14, 2012)]
[Rules and Regulations]
[Pages 48448-48453]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-19810]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 51
[WC Docket Nos. 10-90, 07-135, 05-337, 03-109; GN Docket No. 09-51; CC
Docket Nos. 01-92, 96-45; WT Docket No. 10-208; DA 12-870]
Connect America Fund; A National Broadband Plan for Our Future;
Establishing Just and Reasonable Rates for Local Exchange Carriers;
High-Cost Universal Service Support
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: In this document, the Federal Communications Commission
revises and clarifies certain provisions of its rules relating to the
transition of intrastate switched access rates and the operation of the
transitional recovery mechanism that were adopted in the USF/ICC
Transformation Order. The Commission also grants a number of limited
waivers of the Commission's rules to address administrative concerns
and rule inconsistencies.
DATES: Effective September 13, 2012.
FOR FURTHER INFORMATION CONTACT: Belinda Nixon, Wireline Competition
Bureau, (202) 418-1520.
SUPPLEMENTARY INFORMATION: This is a summary of the Wireline
Competition Bureau's Order in WC Docket Nos. 10-90, 07-135, 05-337, 03-
109; GN Docket No. 09-51; CC Docket Nos. 01-92, 96-45; WT Docket No.
10-208; DA 12-870, released on June 5, 2012. The full text of this
document is available for public inspection during regular business
hours in the FCC Reference Center, Room CY-A257, 445 12th Street SW.,
Washington, DC 20554, and at the following Internet address: http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0425/FCC-12-47A1.pdf. The complete text may be purchased from the Commission's
duplicating contractor, Best Copy and Printing, Inc. (BCPI), Portals
II, 445 12th Street SW., Room CY-B402, Washington, DC 20554, (202) 488-
5300, facsimile (202) 488-5563, or via email at [email protected].
I. Introduction
1. In the USF/ICC Transformation Order, the Commission delegated to
the Wireline Competition Bureau (Bureau) the authority to revise and
clarify rules as necessary to ensure that the reforms adopted in the
USF/ICC Transformation Order are properly reflected in the rules. In
this Order, the Bureau acts pursuant to this delegated authority to
revise and
[[Page 48449]]
clarify certain rules, and acts pursuant to authority delegated to the
Bureau in Sec. Sec. 0.91, 0.201(d), and 0.291 of the Commission's
rules to clarify certain rules. Below, the Bureau clarifies several
intercarrier compensation issues relating to the transition of
intrastate switched access rates and operation of the transitional
recovery mechanism adopted in the USF/ICC Transformation Order. The
Bureau also grants limited waivers of the Commission's rules to address
administrative concerns and rule inconsistencies.
II. Discussion
2. In the USF/ICC Transformation Order, the Commission adopted a
uniform national bill-and-keep framework as the ultimate intercarrier
compensation end state for all telecommunications traffic exchanged
with a local exchange carrier (LEC), and established a gradual,
measured transition that focused initially on reducing certain
terminating switched access rates. The initial steps of the transition
cap the vast majority of switched access rates and require carriers to,
among other things, reduce certain intrastate switched access rates to
interstate levels pursuant to the methodology contained in the rules.
The Commission also adopted a transitional recovery mechanism to
mitigate the effect of reduced intercarrier revenues on carriers and to
facilitate continued investment in broadband infrastructure, while
providing greater certainty and predictability going forward than the
status quo ante. As part of the transitional recovery mechanism, the
Commission defined, as ``Eligible Recovery,'' the amount of
intercarrier compensation revenue reductions that incumbent LECs would
be eligible to recover.
3. In this Order, the Bureau clarifies that the required reductions
to intrastate switched access rates may be made to the rate level for
any intrastate switched access rate so long as the lowered rates
produce a reduction in revenues equal to the total reduction required
in 2012. In addition, the Bureau clarifies that non-commercial mobile
radio service (CMRS) reciprocal compensation traffic exchanged pursuant
to a bill-and-keep arrangement should not be included in demand for the
purpose of intercarrier compensation rate transition calculations.
Finally, we grant a number of limited rule waivers, including a limited
waiver of Sec. 54.712 of our rules, to allow incumbent LECs to charge
the second quarter 2012 universal service contribution factor until
July 3, 2012.
A. Transition Implementation
1. Rate Structure Issues
4. In the USF/ICC Transformation Order, the Commission noted that
in many states, intrastate switched access rates are significantly
higher than interstate switched access rates; in others, intrastate
switched access and interstate switched access rates are at parity; and
in still other states, intrastate access rates are below interstate
levels. The Commission noted that this rate disparity ``created
incentives for arbitrage and pervasive competitive distortions within
the industry.'' The Commission, therefore, adopted transition
mechanisms for incumbent LECs and competitive LECs that require
carriers to reduce intrastate switched access rates in 2012 if
intrastate rates are higher than interstate rates. Specifically, in
making the comparison, the Commission did not focus on specific rates,
but compared certain intrastate revenues resulting from switched demand
for Fiscal Year 2011 to the same demand priced at corresponding
interstate rates for the same period. If the intrastate revenues are
higher, then the carrier is required to make a reduction in its
intrastate switched access rates in 2012.
5. Under the methodology adopted in the transition rules, the
reduction in a carrier's intrastate rates on July 1, 2012, is equal to
one-half of the difference between the compared revenue levels. On July
1, 2013, the specified intrastate switched access rates move to parity
with interstate switched access rate levels employing the carrier's
interstate rate structure. This movement to interstate rates and rate
structure was designed to reduce the potential for arbitrage between
interstate and intrastate rates and deliver the benefits of a uniform
intercarrier compensation system. The Commission also prohibited
carriers from raising any intrastate rates that are lower than their
functionally equivalent interstate rates in making this transition.
6. Carriers and state commissions have posed a number of questions
concerning the implementation of this transition. For instance, some of
a carrier's intrastate switched access rate element rates in a state
may be below the carrier's functionally equivalent interstate switched
access rate element rates. Other of the carrier's intrastate switched
access rate element rates in the state could, simultaneously, be above
the functionally equivalent interstate switched access rate element
rates. In other cases, a carrier's overall intrastate switched access
rate structure may be dissimilar to its interstate switched access rate
structure. This situation may require a carrier desiring to move to the
interstate rate structure in 2012 to establish new rate elements, which
on its face, could be viewed to violate the prohibition on intrastate
switched access rate increases in 2012.
7. We conclude that some clarification of the rules governing the
transition from intrastate switched access rates and rate structures to
interstate switched access rates and rate structures is warranted to
assist carriers in making their 2012 intrastate switched access tariff
filings and to provide guidance to state commissions who are
responsible for reviewing these filings. As noted above, the
determination of whether intrastate switched access rates must be
reduced in 2012 was based on an aggregate measurement, not on the basis
of comparing one tariffed rate to another tariffed rate. Accordingly,
prohibiting increases to specific intrastate switched access rate
element rates is inconsistent with a transition plan based on moving
aggregate revenue levels to interstate levels using interstate switched
access rates and rate structure. If a carrier has an intrastate rate
for a particular rate element that is below the rate for its
functionally equivalent interstate rate element, it cannot comply with
both the prohibition on increasing rates and the requirement to
transition to interstate rates using the interstate switched access
rate structure. Therefore, we clarify that, for carriers required to
make reductions to intrastate switched access rates in 2012 under the
intercarrier compensation transition, achievement of unified rate
levels and rate structure overrides the prohibition on rate element
increases included in the adopted transition rules.
8. The rules set forth two approaches for implementing the initial
reductions to specified intrastate switched access rates. First, a LEC
may elect to establish rates for Transitional Intrastate Access Service
using its intrastate access rate structure. Alternatively, it may elect
to apply its interstate access rates and rate structures, and for one
year assess a transitional per-minute charge on Transitional Intrastate
Access Service end office switching minutes. These approaches remain
valid, but should not be read as the only approaches that can be used
to transition intrastate switched access rates to interstate switched
access rates. In considering alternative rate and rate structure
approaches to reducing intrastate switched access rates, the
overarching principle is compliance with the requirement that a carrier
reduce its overall intrastate switched access rates by the amount
calculated in Sec. 51.907(b)(2) (for price cap carriers) or
[[Page 48450]]
51.909(b)(2) (for rate-of-return carriers) of the Commission's rules.
Thus, we now clarify that a carrier required to make intrastate rate
reductions in 2012 may increase individual intrastate switched access
rate element levels to levels above comparable interstate rate element
levels in 2012 without violating the prohibition on raising intrastate
switched access rates as long as the overall reduction principle is
satisfied. For example, a carrier could adopt the interstate rate
structure for its intrastate switched access and price out each rate
element so that the intrastate revenues will reflect the reductions
required in 2012. A carrier could also partially adopt the interstate
rate structure in the first year and move to the interstate rate
structure completely in 2013. Furthermore, we clarify that, for
carriers required to make intrastate switched access rate reductions in
2012, any intrastate switched access rate element that is below the
functionally equivalent interstate switched access rate must be
increased to the interstate level no later than July 1, 2013 to be
consistent with the use of aggregate revenue relations reflected in our
transition rules. Such increase will not be considered to violate the
prohibition on raising intrastate switched access rates. Accordingly,
we revise Sec. Sec. 51.907, 51.909, and 51.911 of the Commission's
rules to reflect these clarifications. An incumbent LEC shall reflect
any increased revenues from increased intrastate rates made in light of
this clarification in calculating its Eligible Recovery under Sec.
51.915(d) or 51.917(d) of the Commission's rules, as appropriate.
9. Moreover, several carriers and state commissions have inquired
as to whether the transition rules require a proportionate reduction to
each intrastate access rate element or whether the reduction may be
targeted to a subset of rate element rates. Consistent with the above
clarification, the required reductions to intrastate switched access
rates may be made to any intrastate switched access rate as long as the
lowered rates produce a reduction in revenues equal to the reduction
required in 2012.
B. Recovery Implementation Issues
10. In the USF/ICC Transformation Order, the Commission adopted
rules establishing procedures for calculating Eligible Recovery for
non-CMRS traffic subject to reciprocal compensation. Within these
rules, the Commission established, as an option, a process for using a
composite rate procedure to calculate required reductions in non-CMRS
reciprocal compensation during the intercarrier compensation rate
transition. Under this process, a price cap carrier may establish a
``composite reciprocal compensation rate for its Fiscal Year 2011
reciprocal compensation receipts and its Fiscal Year 2011 reciprocal
compensation payments by dividing its Fiscal Year 2011 reciprocal
compensation receipts and payments by their respective Fiscal Year 2011
demand * * *.'' AT&T sought clarification that Fiscal Year 2011 non-
CMRS reciprocal compensation demand used to calculate the reduction in
net reciprocal compensation revenues should exclude demand that is
already exchanged pursuant to a bill-and-keep arrangement.
11. We clarify that demand associated with non-CMRS reciprocal
compensation traffic exchanged pursuant to a bill-and-keep arrangement
should not be used in the recovery calculation. Non-CMRS reciprocal
compensation arrangements and the associated demand for traffic
exchanged pursuant to a bill-and-keep arrangement are not part of this
transition process. Under the composite rate approach, non-CMRS
reciprocal compensation rate reductions are required when the target
rate is below the composite rate. If the composite reflected bill-and-
keep demand, the resulting lower composite rate would take longer to
fall below the target transition rate to trigger a reduction in rates.
Because this traffic is not part of the transition and would skew the
average lower, including such demand is inappropriate and contrary to
the intent of the USF/ICC Transformation Order. This would delay the
benefits of reduced, uniform intercarrier compensation rates. We
accordingly amend section 51.915 of the Commission's rules to reflect
this clarification, as set forth in the Appendix.
C. Implementation Issues
1. Waiver of USF Contribution Date Rule
12. In the 2012 Annual Access Tariff Filing Procedures Order, the
Bureau established an effective date of July 3, 2012, for the 2012
annual access charge tariff filing for incumbent LECs. The Commission
moved the annual access charge tariff effective date from July 1, 2012
to July 3, 2012 because, pursuant to Section 204(a)(3) of the Act,
carriers filing their tariff revisions on 15 days' notice would have
been filing their tariffs over a weekend. Accordingly, the Bureau
waived Sec. 69.3 of the Commission's rules and established July 3,
2012 as the effective date for the 2012 annual access charge tariff
filing.
13. Carriers may recover the costs of universal service fund (USF)
contributions by passing through an explicit charge to customers. As
part of the annual access charge tariff filing, carriers include the
universal service charge contribution factor for the third quarter,
which begins on July 1, 2012. Section 54.712 of the Commission's rules
states that ``[i]f a contributor chooses to recover its federal
universal service contribution costs through a line item on a
customer's bill the amount of the federal universal service line-item
charge may not exceed the interstate telecommunications portion of that
customer's bill times the relevant contribution factor.''
14. We recognize that moving the annual access charge tariff filing
to July 3, 2012 creates administrative difficulties with respect to
inclusion of the universal service charge contribution factor.
Requiring carriers to have a different rate for the two first days of
July would be administratively burdensome for carriers and complicated
for the Commission to manage. Accordingly, for incumbent LECs and
competitive LECs filing an annual access charge tariff filing in 2012,
we grant a limited waiver of Sec. 54.712 of the Commission's rules, to
allow such carriers to charge the universal service contribution factor
for the second quarter 2012, until July 3, 2012, at which time carriers
must begin charging the third quarter 2012 factor, with respect to end
user charges that are part of the annual access filing.
15. In addition, if a carrier chooses to apply and pass through
charges associated with the third quarter 2012 universal service
contribution factor on July 1, 2012, we grant a limited waiver of Sec.
61.59 of the Commission's rules, to allow carriers to modify material
in their tariff that has not been effective for 30 days, in order to
file their annual access charge tariff filing on July 3, 2012.
2. Changing the Effective Date to July 3, 2012
16. As explained above, in the 2012 Annual Access Tariff Filing
Procedures Order, the Bureau moved the annual access charge tariff
effective date from July 1, 2012 to July 3, 2012. Because of that
modification to the effective date, the Commission granted a limited
waiver of Sec. Sec. 69.3(a), 51.705, 51.907, and 51.909 of its rules
to the extent that those rules would otherwise require rates to be
effective as of July 1, 2012. Pursuant to that waiver language, state
commissions have informally inquired
[[Page 48451]]
whether the Bureau intended to change the effective date to July 3,
2012, for the intrastate filings that must be made in accordance with
Sec. Sec. 51.705(c), 51.907(b), and 51.909(b) of the Commission's
rules. State commissions have also inquired whether the Bureau intended
to move to July 3, 2012, the date that competitive LECs must reduce
intrastate reciprocal compensation rates in accordance with Sec.
51.911(b) of the Commission's rules.
17. With regard to incumbent LECs, we clarify that the 2012 Annual
Access Tariff Filing Procedures Order granted a limited waiver of the
July 1, 2012 date for intrastate filings made pursuant to Sec. Sec.
51.705(c), 51.907(b), and 51.909(b) of the Commission's rules. In 2012,
the only step incumbent LECs are required to take pursuant to those
rules is to reduce intrastate access and non-access reciprocal
compensation rates. To further clarify, the waiver the Bureau granted
permits, but does not require states to move their effective dates for
intrastate filings from July 1, 2012 to July 3, 2012. However, for
administrative efficiency, we encourage states to move to July 3, 2012
as many effective dates for rate changes as possible.
18. With regard to competitive LECs, the Bureau's 2012 Annual
Access Tariff Filing Procedures Order did not grant a waiver of section
51.911(b) of its rules, which requires competitive LECs to reduce
intrastate reciprocal compensation rates. However, for purposes of
fairness in the treatment of competitive LECs and incumbent LECs, we
conclude that good cause exists to grant a limited waiver of Sec.
51.911(b) of the Commission's rules to allow such rates to become
effective on July 3, 2012 instead of July 1, 2012. As we noted above,
although the waiver does not require states to move their intrastate
effective dates, the Bureau encourages states to move effective dates
for rate changes to July 3, 2012.
3. Waiver of Inconsistent Rules
19. In this Order we make revisions to part 51 of the Commission's
rules as described above to facilitate implementation of Step 1 of the
intercarrier compensation rate transition. We intend for the revisions
contained in this Order to apply to 2012 annual access charge tariff
filings, which must be effective by July 3, 2012. Because the rule
revisions adopted herein cannot be published in the Federal Register
and made effective before the required effective date, we find that
good cause exists to waive applicable sections of part 51 to the extent
necessary to allow LECs to make annual access tariff filings in
accordance with the rule revisions adopted herein.
III. Procedural Matters
A. Paperwork Reduction Act
20. This document does not contain new or modified information
collection requirements subject to the Paperwork Reduction Act of 1995
(PRA), Public Law 104-13. Therefore, it does not contain any new or
modified information collection burden for small business concerns with
fewer than 25 employees, pursuant to the Small Business Paperwork
Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4).
B. Final Regulatory Flexibility Act Certification
21. The Regulatory Flexibility Act of 1980, as amended (RFA),
requires that a regulatory flexibility analysis be prepared for
rulemaking proceedings, unless the agency certifies that ``the rule
will not have a significant economic impact on a substantial number of
small entities.'' The RFA generally defines ``small entity'' as having
the same meaning as the terms ``small business,'' ``small
organization,'' and ``small governmental jurisdiction.'' In addition,
the term ``small business'' has the same meaning as the term ``small
business concern'' under the Small Business Act. A small business
concern is one which (1) Is independently owned and operated; (2) is
not dominant in its field of operation; and (3) satisfies any
additional criteria established by the Small Business Administration
(SBA).
22. This Order clarifies, but does not otherwise modify, the USF/
ICC Transformation Order. These clarifications do not create any
burdens, benefits, or requirements that were not addressed by the Final
Regulatory Flexibility Analysis attached to USF/ICC Transformation
Order. Therefore, we certify that the requirements of this Order will
not have a significant economic impact on a substantial number of small
entities. The Commission will send a copy of the Order including a copy
of this final certification in a report to Congress pursuant to the
Small Business Regulatory Enforcement Fairness Act of 1996; see 5
U.S.C. 801(a)(1)(A). In addition, the Order and this certification will
be sent to the Chief Counsel for Advocacy of the Small Business
Administration, and will be published in the Federal Register. See 5
U.S.C. 605(b).
C. Congressional Review Act
23. The Commission will send a copy of this Order to Congress and
the Government Accountability Office pursuant to the Congressional
Review Act.
IV. Ordering Clauses
24. Accordingly, it is ordered, pursuant to the authority contained
in sections 1, 2, 4(i), 201-203, 220, 251, 252, 303(r), 332, and 403 of
the Communications Act of 1934, as amended, 47 U.S.C. 151, 152, 154(i),
201-203, 220, 251, 252, 303(r), 332, 403, and pursuant to sections
0.91, 0.201(d), 0.291, 1.3, and 1.427 of the Commission's rules, 47 CFR
0.91, 0.201(d), 0.291, 1.3, 1.427 and pursuant to the delegation of
authority in paragraph 1404 of 26 FCC Rcd 17663 (2011) that this Order
is adopted, effective thirty (30) days after publication of the text or
summary thereof in the Federal Register.
25. It is further ordered that part 51 of the Commission's rules,
47 CFR 51.907, 51.909, 51.911, 51.915, and 51.917, are amended as set
forth and such rule amendments shall be effective 30 days after the
date of publication of the rule amendments in the Federal Register.
26. It is further ordered that pursuant to section 1.3 of the
Commission's rules, 47 CFR 1.3, and pursuant to authority delegated in
0.91 and 0.291 of the Commission's rules, 47 CFR 0.91, 0.291, 54.712,
and 61.59 of the Commission's rules, 47 CFR 54.712, and 61.59(a) are
waived effective upon release of this Order for the limited purposes
specified in this Order.
27. It is further ordered that, pursuant to section 1.3 of the
Commission's rules, 47 CFR 1.3, and pursuant to authority delegated in
0.91 and 0.291 of the Commission's rules, 47 CFR 0.91, 0.291, Parts
51.907, 51.909, 51.911, 51.915, and 51.917 of the Commission's rules,
47 CFR 51.907, 51.909, 51.911, 51.915, and 51.917, are waived effective
upon release of this Order for the limited purpose specified in
paragraph 19, supra.
28. It is further ordered that the Commission shall send a copy of
this Order to Congress and the Government Accountability Office
pursuant to the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).
List of Subjects in 47 CFR Part 51
Communications common carriers, Reporting and record keeping
requirements, Telecommunications, Telephone.
[[Page 48452]]
Federal Communications Commission.
Nicholas G. Alexander,
Acting Chief, Pricing Policy Division.
Final Rules
For the reasons discussed in the preamble, the Federal
Communications Commission amends 47 CFR part 51 to read as follows:
PART 51-INTERCONNECTION
0
1. The authority citation for part 51 continues to read as follows:
Authority: Sections 1-5, 7, 201-05, 207-09, 218, 220, 225-27,
251-54, 256, 271, 303(r), and 332, of the Communications Act of
1934, as amended, and section 706 of the Telecommunication Act of
1996, as amended; 47 U.S.C. 151-55, 157, 201-05, 207-09, 218, 220,
225-227, 251-254, 256, 271, 303(r), 332, 1302, 47 U.S.C. 157 note,
unless otherwise noted.
0
2. In Sec. 51.907 revise paragraphs (b)(2)(v) and (vi), add paragraph
(b)(3), revise paragraph (c)(1), remove and reserve paragraph (c)(3),
and add paragraph (c)(4), to read as follows:
Sec. 51.907 Transition of price cap carrier access charges.
* * * * *
(b) * * *
(2) * * *
(v) A Price Cap Carrier may elect to apply its interstate access
rate structure and interstate rates to Transitional Intrastate Access
Service. In addition to applicable interstate access rates, the carrier
may, between July 1, 2012 and July 1, 2013, assess a transitional per-
minute charge on Transitional Intrastate Access Service end office
switching minutes (previously billed as intrastate access). The
transitional per-minute charge shall be no greater than the Step 1
Access Revenue Reduction divided by Fiscal Year 2011 Transitional
Intrastate Access Service end office switching minutes. Carriers
electing to establish rates for Transitional Intrastate Access Service
in this manner shall notify the appropriate state regulatory authority
of their election in the filing required by paragraph (b)(1) of this
section.
(vi) Except as provided in paragraph (b)(3) of this section,
nothing in this section obligates or allows a Price Cap Carrier that
has intrastate rates lower than its functionally equivalent interstate
rates to make any intrastate tariff filing or intrastate tariff
revisions to increase such rates.
(3) If a Price Cap Carrier must make an intrastate switched access
rate reduction pursuant to paragraph (b)(2) of this section, and that
Price Cap Carrier has an intrastate rate for a rate element that is
below the comparable interstate rate for that element, the Price Cap
Carrier shall:
(i) Increase the rate for any intrastate rate element that is below
the comparable interstate rate for that element to the interstate rate
no later than July 1, 2013;
(ii) Include any increases made pursuant to paragraph (b)(3)(i) of
this section in the calculation of its eligible recovery for 2012.
(c) * * *
(1) Transitional Intrastate Access Service rates shall be no higher
than the Price Cap Carrier's interstate access rates. Once the Price
Cap Carrier's Transitional Intrastate Access Service rates are equal to
its functionally equivalent interstate access rates, they shall be
subject to the same rate structure and all subsequent rate and rate
structure modifications. Except as provided in paragraph (c)(4) of this
section, nothing in this section obligates or allows a Price Cap
Carrier that has intrastate rates lower than its functionally
equivalent interstate rates to make any intrastate tariff filing or
intrastate tariff revisions to increase such rates.
* * * * *
(4) If a Price Cap Carrier made an intrastate switched access rate
reduction in 2012 pursuant to paragraph (b)(2) of this section, and
that Price Cap Carrier has an intrastate rate for a rate element that
is below the comparable interstate rate for that element, the Price Cap
Carrier shall:
(i) Increase the rate for any intrastate rate element that is below
the comparable interstate rate for that element to the interstate rate
on July 1, 2013; and
(ii) Include any increases made pursuant to paragraph (b)(4)(i) of
this section in the calculation of its eligible recovery for 2013.
* * * * *
0
3. In Sec. 51.909 revise paragraphs (a)(3), (b)(2)(v), and (b)(3), add
paragraph (b)(4), and revise paragraph (c), to read as follows:
Sec. 51.909 Transition of rate-of-return carrier access charges.
(a) * * *
(3) Except as provided in paragraph (b)(4) of this section, nothing
in this section obligates or allows a Rate-of-Return Carrier that has
intrastate rates lower than its functionally equivalent interstate
rates to make any intrastate tariff filing or intrastate tariff
revisions raising such rates.
(b) * * *
(2) * * *
(v) A Rate-of-Return Carrier may elect to apply its interstate
access rate structure and interstate rates to Transitional Intrastate
Access Service. In addition to applicable interstate access rates, the
carrier may, between July 1, 2012 and July 1, 2013, assess a
transitional per-minute charge on Transitional Intrastate Access
Service end office switching minutes (previously billed as intrastate
access). The transitional per-minute charge shall be no greater than
the Step 1 Access Revenue Reduction divided by Fiscal Year 2011
Transitional Intrastate Access Service end office switching minutes.
Carriers electing to establish rates for Transitional Intrastate Access
Service in this manner shall notify the appropriate state regulatory
authority of their election in the filing required by Sec.
51.907(b)(1).
(3) Except as provided in paragraph (b)(4) of this section, nothing
in this section obligates or allows a Rate-of-Return carrier that has
intrastate rates lower than its functionally equivalent interstate
rates to make any intrastate tariff filing or intrastate tariff
revisions raising such rates.
(4) If a Rate-of-Return Carrier must make an intrastate switched
access rate reduction pursuant to paragraph (b)(2) of this section, and
that Rate-of-Return Carrier has an intrastate rate for a rate element
that is below the comparable interstate rate for that element, the
Rate-of-Return Carrier shall:
(i) Increase the rate for any intrastate rate element that is below
the comparable interstate rate for that element to the interstate rate
no later than July 1, 2013;
(ii) Include any increases made pursuant to paragraph (b)(4)(i) of
this section in the calculation of its eligible recovery for 2012.
(c) Step 2. Beginning July 1, 2013, notwithstanding any other
provision of the Commission's rules:
(1) Transitional Intrastate Access Service rates shall be no higher
than the Rate-of-Return Carrier's interstate Terminating End Office
Access Service and Terminating Tandem-Switched Transport Access Service
rates and subject to the same rate structure and all subsequent rate
and rate structure modifications. Except as provided in paragraph
(c)(2) of this section, nothing in this section obligates or allows a
Rate-of-Return Carrier that has intrastate rates lower than its
functionally equivalent interstate rates to make any intrastate tariff
filing or intrastate tariff revisions to increase such rates.
(2) If a Rate-of-Return Carrier made an intrastate switched access
rate reduction in 2012 pursuant to paragraph (b)(2) of this section,
and that Rate-of-Return Carrier has an intrastate rate for a rate
[[Page 48453]]
element that is below the comparable interstate rate for that element,
the Rate-of-Return Carrier shall:
(i) Increase any intrastate rate element that is below the
comparable interstate rate to the interstate rate by July 1, 2013; and
(ii) Include any increases made pursuant to paragraph (c)(2)(i) of
this section in the calculation of its eligible recovery for 2013.
* * * * *
0
4. In Sec. 51.911 revise paragraphs (b) introductory text and (b)(6),
and add paragraph (b)(7) to read as follows:
Sec. 51.911 Access reciprocal compensation rates for competitive
LECs.
* * * * *
(b) Except as provided in paragraph (b)(7) of this section,
beginning July 3, 2012, notwithstanding any other provision of the
Commission's rules, each Competitive LEC that has tariffs on file with
state regulatory authorities shall file intrastate access tariff
provisions, in accordance with Sec. 51.505(b)(2), that set forth the
rates applicable to Transitional Intrastate Access Service in each
state in which it provides Transitional Intrastate Access Service. Each
Competitive Local Exchange Carrier shall establish the rates for
Transitional Intrastate Access Service using the following methodology.
* * * * *
(6) Except as provided in paragraph (b)(7) of this section, nothing
in this section obligates or allows a Competitive LEC that has
intrastate rates lower than its functionally equivalent interstate
rates to make any intrastate tariff filing or intrastate tariff
revisions raising such rates.
(7) If a Competitive LEC must make an intrastate switched access
rate reduction pursuant to paragraph (b) of this section, and that
Competitive LEC has an intrastate rate for a rate element that is below
the comparable interstate rate for that element, the Competitive LEC
may increase the rate for any intrastate rate element that is below the
comparable interstate rate for that element to the interstate rate no
later than July 1, 2013;
* * * * *
5. In Sec. 51.915 revise paragraphs (d)(1)(i)(C)(2)(i),
(d)(1)(ii)(C)(2)(i), (d)(1)(iii)(E)(2)(i), (d)(1)(iv)(E)(2)(i),
(d)(1)(v)(E)(2)(i), (d)(1)(vi)(F)(2)(i), and (d)(1)(vii)(G)(2)(i), to
read as follows:
Sec. 51.915 Recovery mechanism for price cap carriers.
* * * * *
(d) * * *
(1) * * *
(i) * * *
(C) * * *
(2) * * *
(i) Establish a composite reciprocal compensation rate for its
Fiscal Year 2011 reciprocal compensation receipts and its Fiscal Year
2011 reciprocal compensation payments by dividing its Fiscal Year 2011
reciprocal compensation receipts and payments by its respective Fiscal
Year 2011 demand excluding demand for traffic exchanged pursuant to a
bill-and-keep arrangement;
* * * * *
(ii) * * *
(C) * * *
(2) * * *
(i) Establish a composite reciprocal compensation rate for its
Fiscal Year 2011 reciprocal compensation receipts and its Fiscal Year
2011 reciprocal compensation payments by dividing its Fiscal Year 2011
reciprocal compensation receipts and payments by its respective Fiscal
Year 2011 demand excluding demand for traffic exchanged pursuant to a
bill-and-keep arrangement;
* * * * *
(iii) * * *
(E) * * *
(2) * * *
(i) Establish a composite reciprocal compensation rate for its
Fiscal Year 2011 reciprocal compensation receipts and its Fiscal Year
2011 reciprocal compensation payments by dividing its Fiscal Year 2011
reciprocal compensation receipts and payments by its respective Fiscal
Year 2011 demand excluding demand for traffic exchanged pursuant to a
bill-and-keep arrangement;
* * * * *
(iv) * * *
(E) * * *
(2) * * *
(i) Establish a composite reciprocal compensation rate for its
Fiscal Year 2011 reciprocal compensation receipts and its Fiscal Year
2011 reciprocal compensation payments by dividing its Fiscal Year 2011
reciprocal compensation receipts and payments by its respective Fiscal
Year 2011 demand excluding demand for traffic exchanged pursuant to a
bill-and-keep arrangement;
* * * * *
(v) * * *
(E) * * *
(2) * * *
(i) Establish a composite reciprocal compensation rate for its
Fiscal Year 2011 reciprocal compensation receipts and its Fiscal Year
2011 reciprocal compensation payments by dividing its Fiscal Year 2011
reciprocal compensation receipts and payments by its respective Fiscal
Year 2011 demand excluding demand for traffic exchanged pursuant to a
bill-and-keep arrangement;
* * * * *
(vi) * * *
(F) * * *
(2) * * *
(i) Establish a composite reciprocal compensation rate for its
Fiscal Year 2011 reciprocal compensation receipts and its Fiscal Year
2011 reciprocal compensation payments by dividing its Fiscal Year 2011
reciprocal compensation receipts and payments by its respective Fiscal
Year 2011 demand excluding demand for traffic exchanged pursuant to a
bill-and-keep arrangement;
* * * * *
(vii) * * *
(G) * * *
(2) * * *
(i) Establish a composite reciprocal compensation rate for its
Fiscal Year 2011 reciprocal compensation receipts and its Fiscal Year
2011 reciprocal compensation payments by dividing its Fiscal Year 2011
reciprocal compensation receipts and payments by its respective Fiscal
Year 2011 demand excluding demand for traffic exchanged pursuant to a
bill-and-keep arrangement;
* * * * *
[FR Doc. 2012-19810 Filed 8-13-12; 8:45 am]
BILLING CODE P