[Title 47 CFR ]
[Code of Federal Regulations (annual edition) - October 1, 2009 Edition]
[From the U.S. Government Printing Office]
[[Page i]]
47
Parts 40 to 69
Revised as of October 1, 2009
Telecommunication
________________________
Containing a codification of documents of general
applicability and future effect
As of October 1, 2009
With Ancillaries
Published by
Office of the Federal Register
National Archives and Records
Administration
A Special Edition of the Federal Register
[[Page ii]]
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[[Page iii]]
Table of Contents
Page
Explanation................................................. v
Title 47:
Chapter I--Federal Communications Commission
(Continued) 3
Finding Aids:
Table of CFR Titles and Chapters........................ 449
Alphabetical List of Agencies Appearing in the CFR...... 469
Table of OMB Control Numbers............................ 479
List of CFR Sections Affected........................... 487
[[Page iv]]
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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.
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[[Page v]]
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
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1
The appropriate revision date is printed on the cover of each
volume.
LEGAL STATUS
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HOW TO USE THE CODE OF FEDERAL REGULATIONS
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To determine whether a Code volume has been amended since its
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EFFECTIVE AND EXPIRATION DATES
Each volume of the Code contains amendments published in the Federal
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OMB CONTROL NUMBERS
The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires
Federal agencies to display an OMB control number with their information
collection request.
[[Page vi]]
Many agencies have begun publishing numerous OMB control numbers as
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requirements.
OBSOLETE PROVISIONS
Provisions that become obsolete before the revision date stated on
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(b) The matter incorporated is in fact available to the extent
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(c) The incorporating document is drafted and submitted for
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What if the material incorporated by reference cannot be found? If
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CFR INDEXES AND TABULAR GUIDES
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the revision dates of the 50 CFR titles.
[[Page vii]]
REPUBLICATION OF MATERIAL
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Raymond A. Mosley,
Director,
Office of the Federal Register.
October 1, 2009.
[[Page ix]]
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. All five volumes
contain 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, chapter III--National
Telecommunications and Information Administration, Department of
Commerce, and chapter IV--National Telecommunications and Information
Administration, Department of Commerce, and National Highway Traffic
Safety Administration, Department of Transportation. The contents of
these volumes represent all current regulations codified under this
title of the CFR as of October 1, 2009.
Part 73 contains a numerical designation of FM broadcast channels
(Sec. 73.201) and a table of FM allotments designated for use in
communities in the United States, its territories, and possessions
(Sec. 73.202). Part 73 also contains a numerical designation of
television channels (Sec. 73.603) and a table of allotments which
contain channels designated for the listed communities in the United
States, its territories, and possessions (Sec. 73.606).
The OMB control numbers for the Federal Communications Commission,
appear in Sec. 0.408 of chapter I. For the convenience of the user
Sec. 0.408 is reprinted in the Finding Aids section of the second
through fifth volumes.
For this volume, Michele Bugenhagen was Chief Editor. The Code of
Federal Regulations publication program is under the direction of
Michael L. White, assisted by Ann Worley.
[[Page 1]]
TITLE 47--TELECOMMUNICATION
(This book contains parts 40 to 69)
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Part
chapter i--Federal Communications Commission (Continued).... 42
[[Page 3]]
CHAPTER I--FEDERAL COMMUNICATIONS COMMISSION (CONTINUED)
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SUBCHAPTER B--COMMON CARRIER SERVICES (CONTINUED)
Part Page
40-41 [Reserved]
42 Preservation of records of communication
common carriers......................... 5
43 Reports of communication common carriers and
certain affiliates...................... 7
51 Interconnection............................. 15
52 Numbering................................... 68
53 Special provisions concerning Bell operating
companies............................... 94
54 Universal service........................... 99
59 Infrastructure sharing...................... 184
61 Tariffs..................................... 185
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......... 227
64 Miscellaneous rules relating to common
carriers................................ 258
65 Interstate rate of return prescription
procedures and methodologies............ 359
68 Connection of terminal equipment to the
telephone network....................... 368
69 Access charges.............................. 402
Supplementary Publications: Annual Reports of the Federal Communications
Commission to Congress.
Federal Communications Commission Reports of Orders and Decisions.
Communications Act of 1934 (with amendments and index thereto), Recap.
Version, May 1989.
Study Guide and Reference Material for Commercial Radio Operator
Examinations, May 1979 edition.
[[Page 5]]
SUBCHAPTER B_COMMON CARRIER SERVICES (CONTINUED)
PARTS 40 41 [RESERVED]
PART 42_PRESERVATION OF RECORDS OF COMMUNICATION COMMON CARRIERS--
Table of Contents
Applicability
Sec.
42.01 Applicability.
General Instructions
42.1 Scope of the regulations in this part.
42.2 Designation of a supervisory official.
42.3 Protection and storage of records.
42.4 Index of records.
42.5 Preparation and preservation of reproductions of original records.
42.6 Retention of telephone toll records.
42.7 Retention of other records.
Specific Instructions for Carriers Offering Interexchange Services
42.10 Public availability of information concerning interexchange
services.
42.11 Retention of information concerning detariffed interexchange
services.
Authority: 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.
Source: 51 FR 32653, Sept. 15, 1986, unless otherwise noted.
Applicability
Sec. 42.01 Applicability.
This part prescribes the regulations governing the preservation of
records of communication common carriers that are fully subject to the
jurisdiction of the Commission.
General Instructions
Sec. 42.1 Scope of the regulations in this part.
(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.
(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.
(c) The regulations in this part shall not be construed as excusing
compliance with any other lawful requirement for the preservation of
records.
Sec. 42.2 Designation of a supervisory official.
Each carrier subject to the regulations in this part shall designate
one or more officials to supervise the preservation of its records.
Sec. 42.3 Protection and storage of records.
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.
Sec. 42.4 Index of records.
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
[[Page 6]]
they may be readily identified and made available to representatives of
the Commission.
Sec. 42.5 Preparation and preservation of reproductions of original
records.
(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.
(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.
(c) Records may be retained on microfilm provided they meet the
requirements of the Federal Business Records Act (28 U.S.C. 1732).
Sec. 42.6 Retention of telephone toll records.
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.
[51 FR 39536, Oct. 29, 1986]
Sec. 42.7 Retention of other records.
Except as specified in Sec. 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.
Specific Instructions for Carriers Offering Interexchange Services
Sec. 42.10 Public availability of information concerning
interexchange services.
(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 international and 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.
(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.
[64 FR 19725, Apr. 22, 1999, as amended at 66 FR 16879, Mar. 28, 2001]
Sec. 42.11 Retention of information concerning detariffed
interexchange services.
(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 international and
interstate, domestic, interexchange service offerings. A commercial
mobile radio service (CMRS) provider shall maintain such price and
[[Page 7]]
service information only about its international common carrier service
offerings and only for those routes on which the CMRS provider is
classified as dominant under Sec. 63.10 of this Chapter due to an
affiliation with a foreign carrier that collects settlement payments
from U.S. carriers for terminating U.S. international switched traffic
at the foreign end of the route. Such a CMRS provider is not required to
maintain its price and service information, however, on any such
affiliated route if it provides service on that route solely through the
resale of an unaffiliated facilities-based provider's international
switched services. The price and service information maintained for
purposes of this paragraph shall include documents supporting the rates,
terms, and conditions of the carrier's international and interstate,
domestic, interexchange offerings. The information maintained pursuant
to this section shall be maintained in a manner that allows the carrier
to produce such records within ten business days. For purposes of this
paragraph, affiliated and foreign carrier are defined in Sec. 63.09 of
this chapter.
(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.
[61 FR 59366, Nov. 22, 1996, as amended at 62 FR 59604, Nov. 4, 1997; 64
FR 19725, Apr. 22, 1999; 66 FR 16879, Mar. 28, 2001]
PART 43_REPORTS OF COMMUNICATION COMMON CARRIERS AND CERTAIN
AFFILIATES--Table of Contents
Sec.
43.01 Applicability.
43.11 Reports of local exchange competition data.
43.21 Transactions with affiliates.
43.41 [Reserved]
43.43 Reports of proposed changes in depreciation rates.
43.51 Contracts and concessions.
43.53 Reports regarding division of international toll communication
charges.
43.61 Reports of international telecommunications traffic.
43.72 [Reserved]
43.82 International circuit status reports.
Authority: 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.
Source: 28 FR 13214, Dec. 5, 1963, unless otherwise noted.
Sec. 43.01 Applicability.
(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.
(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.
(c) Carriers becoming subject to the provisions of Sec. Sec. 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
Federal Register. With respect to such initial filing of reports by any
carrier, pursuant to the provisions of Sec. 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 Federal Register by April 1 of the second calendar year
following publication of that indexed revenue threshold in the Federal
Register.
(d) Common carriers subject to the provisions of Sec. 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
[[Page 8]]
local exchange services as of June 31 of the current year). Common
carriers becoming subject to the provisions of Sec. 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 Sec. 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).
[28 FR 13214, Dec. 5, 1963, as amended at 62 FR 39778, July 24, 1997; 65
FR 19685, Apr. 12, 2000]
Sec. 43.11 Reports of local exchange competition data
(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 U.S.C. 153(16) and (47)), commercial mobile radio
service (CMRS) providers offering mobile telephony (as defined in Sec.
20.15(b)(1) of this chapter), and Interconnected Voice over IP service
providers (as defined in Sec. 9.3 of this chapter), 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 provide service.
(b) Respondents identified in paragraph (a) of this section shall
include in each report a certification signed by an appropriate official
of the respondent (as specified in the instructions to FCC Form 477).
(c) Respondents may make requests for Commission non-disclosure of
provider-specific data contained in the Form 477 under Sec. 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 Wireline Competition 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.
(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.
(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.
[65 FR 19685, Apr. 12, 2000, as amended at 69 FR 77938, Dec. 29, 2004;
73 FR 37881, July 2, 2008]
Effective Date Note: At 73 FR 37881, July 2, 2008, Sec. 43.11 was
amended by revising paragraphs (a), (b), and (c). This section contains
information collection and recordkeeping requirements and will not
become effective until approval has been given by the Office of
Management and Budget.
Sec. 43.21 Transactions with affiliates.
(a) Communication common carriers having annual operating revenues
in excess of the indexed revenue threshold, as defined in Sec. 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
Sec. 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.
[[Page 9]]
(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 Sec. 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.
(c) Each miscellaneous common carrier (as defined by Sec. 21.2 of
this chapter) with operating revenues for a calendar year in excess of
the indexed revenue threshold, as defined in Sec. 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 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 Federal Register, but in no
event shall such carriers be required to file the letter prior to April
1.
(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:
(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
(2) A report of the actual use of network plant investment for the
prior calendar year.
(e) Each incumbent local exchange carrier, except mid-sized
incumbent local exchange carriers, as defined by Sec. 32.9000 with
annual operating revenues equal to or above the indexed revenue
threshold shall file, no later than April 1 of each year:
(1) Its revenues, expenses and investment for all accounts
established in part 32 of this chapter, on an operating company basis,
(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
(3) The separations categories on a study area basis, with each
category further divided into access elements and a nonaccess interstate
category.
(f) Each incumbent 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.
(g) Each incumbent local exchange carrier for whom price cap
regulation is mandatory and every incumbent 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 Wireline Competition
Bureau, from the previous calendar year on a study area basis.
(h) Each incumbent local exchange carrier for whom price cap
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 Wireline Competition Bureau, from
the previous calendar year a study area basis.
(i) Each incumbent local exchange carrier for whom price regulation
is mandatory shall file, by April 1 of each year, a report containing
data from the
[[Page 10]]
previous calendar year on a study area basis that are designed to
capture trends in telephone industry infrastructure development under
price cap regulation.
(j) Each incumbent 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.
(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 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.
[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; 67 FR 5700, Feb. 6, 2002; 67 FR 13225, Mar. 21,
2002]
Sec. 43.41 [Reserved]
Sec. 43.43 Reports of proposed changes in depreciation rates.
(a) Each communication common carrier with annual operating expenses
that equal or exceed the indexed revenue threshold, as defined in Sec.
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.
(b) Each such report shall contain the following:
(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;
(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;
(3) A statement giving the reasons for the proposed change in each
rate;
(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
(5) The date as of which the revised rates are proposed to be made
effective in the accounts.
(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
[[Page 11]]
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.
(1) A Local Exchange Carrier regulated under price caps, pursuant to
Sec. Sec. 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.
(2) Local Exchange Carriers that are regulated under price caps,
pursuant to Sec. Sec. 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),
(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.
(3) Interexchange carriers regulated under price caps, pursuant to
Sec. Sec. 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.
(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.
(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.g., 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: Provided however,
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.
(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.
[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]
Sec. 43.51 Contracts and concessions.
(a)(1) Any communication common carrier described in paragraph (b)
of this section 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:
(i) The exchange of services; and,
(ii) The interchange or routing of traffic and matters concerning
rates, accounting rates, division of tolls, or the basis of settlement
of traffic balances, except as provided in paragraph (c) of this
section.
(2) If the contract, agreement, concession, license, authorization,
operating agreement or other arrangement and amendments thereto 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
[[Page 12]]
agreement which is also subject to these provisions may, in lieu of also
filing a copy 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.
(b) The following communication common carriers must comply with the
requirements of paragraph (a) of this section:
(1) A carrier that is engaged in domestic communications and has not
been classified as non-dominant pursuant to Sec. 61.3 of this Chapter,
(2) A carrier that is engaged in foreign communications and that has
been classified as dominant for any service on any of the U.S.-
international routes included in the contract, except for a carrier
classified as dominant on a particular route due only to a foreign
carrier affiliation under Sec. 63.10 of this chapter, or
(3) A carrier, other than a provider of commercial mobile radio
services, that is engaged in foreign communications and enters into a
contract, agreement, concession, license, authorization, operating
agreement or other arrangement and amendments thereto with a foreign
carrier that does not qualify for the presumption, set forth in Note 3
to this section, that it lacks market power on the foreign end of one or
more of the U.S.-international routes included in the contract, unless
the route appears on the Commission's list of U.S.-international routes
that the Commission has exempted from the international settlements
policy set forth in Sec. 64.1002 of this chapter.
(c) With respect to contracts coming within the scope of paragraph
(a)(1)(ii) 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.
(d) Any U.S. carrier that interconnects to the U.S. public switched
network an international private line that extends between the United
States and a country that the Commission has not exempted from the
international settlements policy 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 at the
carrier's own switch, including any switch in which the carrier holds a
leasehold interest. 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 which the Commission
has exempted from the international settlements policy, set forth in
Sec. 64.1002 of this chapter, at any time during a particular reporting
period are exempt from this filing requirement.
(e) Other filing requirements for carriers providing service on
U.S.-international routes that are subject to the international
settlements policy.
(1) For routes subject to the international settlements policy set
forth in Sec. 64.1002 of this chapter, if a U.S. carrier files an
operating or other agreement with a foreign carrier pursuant to
paragraph (a) of this section to begin providing switched voice, telex,
telegraph, or packet-switched service between the United States and a
foreign point, the carrier must also file with the International Bureau
a modification request under Sec. 64.1001 of this chapter. The
operating or other agreement cannot become effective until the
modification
[[Page 13]]
request has been granted under paragraph Sec. 64.1001(e) of this
chapter.
(2) For routes subject to the international settlements policy, if a
carrier files an amendment, pursuant to paragraph (a) of this section,
to an existing operating or other agreement with a foreign carrier to
provide switched voice, telex, telegraph, or packet-switched service
between the United States and a 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 Sec. 64.1001 of this chapter. The amendment
to the operating or other agreement cannot become effective until the
modification request has been granted under Sec. 64.1001(e) of this
chapter.
(f) Confidential treatment. (1) A carrier providing service on an
international route that is exempt from the international settlements
policy under paragraph (e)(3) of this section, but that is otherwise
required by paragraphs (a) and (b) of this section to file a contract
covering service on that route with the Commission, may request
confidential treatment under Sec. 0.457 of this Chapter for the rates,
terms and conditions that govern the settlement of U.S. international
traffic.
(2) Carriers requesting confidential treatment under this paragraph
must include the information specified in Sec. 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
Sec. 43.51(f).
Note 1 to Sec. 43.51: For purposes of this section, affiliated and
foreign carrier are defined in Sec. 63.09 of this chapter.
Note 2 to Sec. 43.51: To the extent that a foreign government
provides telecommunications services directly through a governmental
organization, body or agency, it shall be treated as a foreign carrier
for the purposes of this section.
Note 3 to Sec. 43.51: Carriers shall rely on the Commission's list
of foreign carriers that do not qualify for the presumption that they
lack market power in particular foreign points for purposes of
determining which of their foreign carrier contracts are subject to the
contract filing requirements set forth in this section. The Commission's
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.
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.
Note 4 to Sec. 43.51: The Commission's list of international routes
exempted from the international settlements policy is available on the
International Bureau's World Wide Web site at http://www.fcc.gov/ib.
[66 FR 16879, Mar. 28, 2001, as amended at 69 FR 23153, Apr. 28, 2004]
Sec. 43.53 Reports regarding division of international toll
communication charges.
(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
[[Page 14]]
Commission a report covering any such existing arrangements.
(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.
(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.
[51 FR 45891, Dec. 23, 1986, as amended at 52 FR 8453, Mar. 18, 1987]
Sec. 43.61 Reports of international telecommunications traffic.
(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.
(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.
(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.
(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, Wireline Competition Bureau, prepared
and published as a manual, in consultation and coordination with the
Chief, International Bureau.
(b) Quarterly Traffic Reports. (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:
(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 Sec. 43.61 annual report of international
telecommunications traffic;
(ii) The carrier's aggragate minutes of facilities-based or
facilities resale switched telephone traffic for service billed outside
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 Sec. 43.61 annual report of international
telecommunications traffic;
(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 Sec. 43.61 annual
report of international telecommunications traffic; or
(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 Sec.
43.61 annual report of international telecommunications traffic.
(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
[[Page 15]]
conformance with, the filing procedures for the annual reports required
by paragraph (a) of this section.
(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.
(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.
(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. Commercial Mobile Radio Service (CMRS) carriers,
as defined in Sec. 20.9 of this chapter, are not required to file
reports pursuant to this paragraph. For purposes of this paragraph,
affiliated and foreign carrier are defined in Sec. 63.09 of this
chapter.
[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; 66 FR 67112, Dec. 28, 2001; 67 FR 13225, Mar. 21, 2002; 67 FR
45390, July 9, 2002]
Sec. 43.72 [Reserved]
Sec. 43.82 International circuit status reports.
(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.
(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.
(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.
(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.
[60 FR 51368, Oct. 2, 1995]
PART 51_INTERCONNECTION--Table of Contents
Subpart A_General Information
Sec.
51.1 Basis and purpose.
51.3 Applicability to negotiated agreements.
51.5 Terms and definitions.
Subpart B_Telecommunications Carriers
51.100 General duty.
Subpart C_Obligations of All Local Exchange Carriers
51.201 Resale.
51.203 Number portability.
51.205 Dialing parity: General.
51.207 Local dialing parity.
51.209 Toll dialing parity.
51.213 Toll dialing parity implementation plans.
51.215 Dialing parity: Cost recovery.
51.217 Nondiscriminatory access: Telephone numbers, operator services,
directory assistance services, and directory listings.
51.219 Access to rights of way.
51.221 Reciprocal compensation.
51.223 Application of additional requirements.
51.230 Presumption of acceptability for deployment of an advanced
services loop technology.
51.231 Provision of information on advanced services deployment.
[[Page 16]]
51.232 Binder group management.
51.233 Significant degradation of services caused by deployment of
advanced services.
Subpart D_Additional Obligations of Incumbent Local Exchange Carriers
51.301 Duty to negotiate.
51.303 Preexisting agreements.
51.305 Interconnection.
51.307 Duty to provide access on an unbundled basis to network elements.
51.309 Use of unbundled network elements.
51.311 Nondiscriminatory access to unbundled network elements.
51.313 Just, reasonable and nondiscriminatory terms and conditions for
the provision of unbundled network elements.
51.315 Combination of unbundled network elements.
51.316 Conversion of unbundled network elements and services.
51.317 Standards for requiring the unbundling of network elements.
51.318 Eligibility criteria for access to certain unbundled network
elements.
51.319 Specific unbundling requirements.
51.320 Assumption of responsibility by the Commission.
51.321 Methods of obtaining interconnection and access to unbundled
elements under section 251 of the Act.
51.323 Standards for physical collocation and virtual collocation.
51.325 Notice of network changes: Public notice requirement.
51.327 Notice of network changes: Content of notice.
51.329 Notice of network changes: Methods for providing notice.
51.331 Notice of network changes: Timing of notice.
51.333 Notice of network changes: Short term notice, objections thereto
and objections to retirement of copper loops or copper
subloops.
51.335 Notice of network changes: Confidential or proprietary
information.
Subpart E_Exemptions, Suspensions, and Modifications of Requirements of
Section 251 of the Act
51.401 State authority.
51.403 Carriers eligible for suspension or modification under section
251(f)(2) of the Act.
51.405 Burden of proof.
Subpart F_Pricing of Elements
51.501 Scope.
51.503 General pricing standard.
51.505 Forward-looking economic cost.
51.507 General rate structure standard.
51.509 Rate structure standards for specific elements.
51.511 Forward-looking economic cost per unit.
51.513 Proxies for forward-looking economic cost.
51.515 Application of access charges.
Subpart G_Resale
51.601 Scope of resale rules.
51.603 Resale obligation of all local exchange carriers.
51.605 Additional obligations of incumbent local exchange carriers.
51.607 Wholesale pricing standard.
51.609 Determination of avoided retail costs.
51.611 Interim wholesale rates.
51.613 Restrictions on resale.
51.615 Withdrawal of services.
51.617 Assessment of end user common line charge on resellers.
Subpart H_Reciprocal Compensation for Transport and Termination of
Telecommunications Traffic
51.701 Scope of transport and termination pricing rules.
51.703 Reciprocal compensation obligation of LECs.
51.705 Incumbent LECs' rates for transport and termination.
51.707 Default proxies for incumbent LECs' transport and termination
rates.
51.709 Rate structure for transport and termination.
51.711 Symmetrical reciprocal compensation.
51.713 Bill-and-keep arrangements for reciprocal compensation.
51.715 Interim transport and termination pricing.
51.717 Renegotiation of existing non-reciprocal arrangements.
Subpart I_Procedures for Implementation of Section 252 of the Act
51.801 Commission action upon a state commission's failure to act to
carry out its responsibility under section 252 of the Act.
51.803 Procedures for Commission notification of a state commission's
failure to act.
51.805 The Commission's authority over proceedings and matters.
51.807 Arbitration and mediation of agreements by the Commission
pursuant to section 252(e)(5) of the Act.
51.809 Availability of provisions of agreements to other
telecommunications carriers under section 252(i) of the Act.
Authority: Sections 1-5, 7, 201-05, 207-09, 218, 225-27, 251-54,
256, 271, 303(r), 332, 48 Stat. 1070, as amended, 1077; 47 U.S.C. 151-
55, 157,
[[Page 17]]
201-05, 207-09, 218, 225-27, 251-54, 256, 271, 303(r), 332, 47 U.S.C.
157 note, unless otherwise noted.
Source: 61 FR 45619, Aug. 29, 1996, unless otherwise noted.
Subpart A_General Information
Sec. 51.1 Basis and purpose.
(a) Basis. These rules are issued pursuant to the Communications Act
of 1934, as amended.
(b) Purpose. 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.
Sec. 51.3 Applicability to negotiated agreements.
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.
Sec. 51.5 Terms and definitions.
Terms used in this part have the following meanings:
Act. The Communications Act of 1934, as amended.
Advanced intelligent network. Advanced intelligent network 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.
Advanced services. 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.
Arbitration, final offer. Final offer arbitration 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.
Billing. Billing 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.
Binder or binder group. Copper pairs bundled together, generally in
groups of 25, 50 or 100.
Business line. A business line is an incumbent LEC-owned switched
access line used to serve a business customer, whether by the incumbent
LEC itself or by a competitive LEC that leases the line from the
incumbent LEC. The number of business lines in a wire center shall equal
the sum of all incumbent LEC business switched access lines, plus the
sum of all UNE loops connected to that wire center, including UNE loops
provisioned in combination with other unbundled elements. Among these
requirements, business line tallies:
(1) Shall include only those access lines connecting end-user
customers with incumbent LEC end-offices for switched services,
(2) Shall not include non-switched special access lines,
(3) Shall account for ISDN and other digital access lines by
counting each 64 kbps-equivalent as one line. For example, a DS1 line
corresponds to 24 64 kbps-equivalents, and therefore to 24 ``business
lines.''
Commercial Mobile Radio Service (CMRS). CMRS has the same meaning as
that term is defined in Sec. 20.3 of this chapter.
Commingling. Commingling means the connecting, attaching, or
otherwise linking of an unbundled network element, or a combination of
unbundled network elements, to one or more facilities or services that a
requesting telecommunications carrier has obtained at wholesale from an
incumbent LEC, or the combining of an unbundled
[[Page 18]]
network element, or a combination of unbundled network elements, with
one or more such facilities or services. Commingle means the act of
commingling.
Commission. Commission refers to the Federal Communications
Commission.
Day. Day means calendar day.
Dialing parity. The term dialing parity 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).
Directory assistance service. Directory assistance service includes,
but is not limited to, making available to customers, upon request,
information contained in directory listings.
Directory listings. Directory listings are any information:
(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
(2) That the telecommunications carrier or an affiliate has
published, caused to be published, or accepted for publication in any
directory format.
Downstream database. A downstream database is a database owned and
operated by an individual carrier for the purpose of providing number
portability in conjunction with other functions and services.
Enhanced extended link. An enhanced extended link or EEL consists of
a combination of an unbundled loop and unbundled dedicated transport,
together with any facilities, equipment, or functions necessary to
combine those network elements.
Equipment necessary for interconnection or access to unbundled
network elements. 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.
Fiber-based collocator. A fiber-based collocator is any carrier,
unaffiliated with the incumbent LEC, that maintains a collocation
arrangement in an incumbent LEC wire center, with active electrical
power supply, and operates a fiber-optic cable or comparable
transmission facility that
(1) Terminates at a collocation arrangement within the wire center;
(2) Leaves the incumbent LEC wire center premises; and
(3) Is owned by a party other than the incumbent LEC or any
affiliate of the incumbent LEC, except as set forth in this paragraph.
Dark fiber obtained from an incumbent LEC on an indefeasible right of
use basis shall be treated as non-incumbent LEC fiber-optic cable. Two
or more affiliated fiber-based collocators in a single wire center shall
collectively be counted as a single fiber-based collocator. For purposes
of this paragraph, the term affiliate is defined by 47 U.S.C. 153(1) and
any relevant interpretation in this Title.
Incumbent Local Exchange Carrier (Incumbent LEC). With respect to an
area, the local exchange carrier that:
(1) On February 8, 1996, provided telephone exchange service in such
area; and
(2)(i) On February 8, 1996, was deemed to be a member of the
exchange carrier association pursuant to Sec. 69.601(b) of this
chapter; or
(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.
Information services. The term information services 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
[[Page 19]]
capability for the management, control, or operation of a
telecommunications system or the management of a telecommunications
service.
Interconnection. Interconnection is the linking of two networks for
the mutual exchange of traffic. This term does not include the transport
and termination of traffic.
Known disturber. An advanced services technology that is prone to
cause significant interference with other services deployed in the
network.
Intermodal. The term intermodal refers to facilities or technologies
other than those found in traditional telephone networks, but that are
utilized to provide competing services. Intermodal facilities or
technologies include, but are not limited to, traditional or new cable
plant, wireless technologies, and power line technologies.
Local Access and Transport Area (LATA). A Local Access and Transport
Area is a contiguous geographic area--
(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
(2) Established or modified by a Bell operating company after
February 8, 1996 and approved by the Commission.
Local Exchange Carrier (LEC). A LEC 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.
Maintenance and repair. Maintenance and repair 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.
Meet point. A meet point 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.
Meet point interconnection arrangement. A meet point interconnection
arrangement is an arrangement by which each telecommunications carrier
builds and maintains its network to a meet point.
Mobile wireless service. A mobile wireless service is any mobile
wireless telecommunications service, including any commercial mobile
radio service.
Multi-functional equipment. Multi-functional equipment is equipment
that combines one or more functions that are necessary for
interconnection or access to unbundled network elements with one or more
functions that would not meet that standard as stand-alone functions.
Network element. A network element 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.
Operator services. Operator services 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.
Physical collocation. Physical collocation is an offering by an
incumbent LEC that enables a requesting telecommunications carrier to:
(1) Place its own equipment to be used for interconnection or access
to unbundled network elements within or upon an incumbent LEC's
premises;
(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
[[Page 20]]
LEC's unbundled network elements for the provision of a
telecommunications service;
(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
(4) Obtain reasonable amounts of space in an incumbent LEC's
premises, as provided in this part, for the equipment necessary for
interconnection or access to unbundled elements, allocated on a first-
come, first-served basis.
Premises. Premises 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.
Pre-ordering and ordering. 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.
Provisioning. Provisioning 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.
Rural telephone company. A rural telephone company is a LEC
operating entity to the extent that such entity:
(1) Provides common carrier service to any local exchange carrier
study area that does not include either:
(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
(ii) Any territory, incorporated or unincorporated, included in an
urbanized area, as defined by the Bureau of the Census as of August 10,
1993;
(2) Provides telephone exchange service, including exchange access,
to fewer than 50,000 access lines;
(3) Provides telephone exchange service to any local exchange
carrier study area with fewer than 100,000 access lines; or
(4) Has less than 15 percent of its access lines in communities of
more than 50,000 on February 8, 1996.
Service control point. A service control point is a computer
database in the public switched network which contains information and
call processing instructions needed to process and complete a telephone
call.
Service creation environment. A service creation environment is a
computer containing generic call processing software that can be
programmed to create new advanced intelligent network call processing
services.
Service provider. A service provider is a provider of
telecommunications services or a provider of information services.
Signal transfer point. A signal transfer point 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.
State. The term state includes the District of Columbia and the
Territories and possessions.
State commission. A state commission means the commission, board, or
official (by whatever name designated) which under the laws of any state
has
[[Page 21]]
regulatory jurisdiction with respect to intrastate operations of
carriers. As referenced in this part, this term may include the
Commission if it assumes responsibility for a proceeding or matter,
pursuant to section 252(e)(5) of the Act or Sec. 51.320. This term
shall also include any person or persons to whom the state commission
has delegated its authority under sections 251 and 252 of the Act and
this part.
State proceeding. A state proceeding 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.
Technically feasible. 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.
Telecommunications carrier. 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
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.
Telecommunications service. 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.
Telephone exchange service. A telephone exchange service is:
(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
(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.
Telephone toll service. The term telephone toll service 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.
Unreasonable dialing delay. 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
[[Page 22]]
providing dialing parity, or nondiscriminatory access to operator
services or directory assistance.
Triennial Review Order. The Triennial Review Order means the
Commission's Report and Order and Order on Remand and Further Notice of
Proposed Rulemaking in CC Docket Nos. 01-338, 96-98, and 98-147.
Triennial Review Remand Order. The Triennial Review Remand Order is
the Commission's Order on Remand in CC Docket Nos. 01-338 and 04-313
(released February 4, 2005).
Virtual collocation. Virtual collocation is an offering by an
incumbent LEC that enables a requesting telecommunications carrier to:
(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;
(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
(3) Electronically monitor and control its communications channels
terminating in such equipment.
Wire center. A wire center is the location of an incumbent LEC 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.
[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; 66 FR 43521, Aug. 20, 2001; 68 FR
52293, Sept. 2, 2003; 70 FR 8952, Feb. 24, 2005]
Subpart B_Telecommunications Carriers
Sec. 51.100 General duty.
(a) Each telecommunications carrier has the duty:
(1) To interconnect directly or indirectly with the facilities and
equipment of other telecommunications carriers; and
(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.
(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.
Subpart C_Obligations of All Local Exchange Carriers
Sec. 51.201 Resale.
The rules governing resale of services by an incumbent LEC are set
forth in subpart G of this part.
Sec. 51.203 Number portability.
The rules governing number portability are set forth in part 52,
subpart C of this chapter.
Sec. 51.205 Dialing parity: General.
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.
[61 FR 47349, Sept. 6, 1996]
Sec. 51.207 Local dialing parity.
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.
[61 FR 47349, Sept. 6, 1996]
Sec. 51.209 Toll dialing parity.
(a) A LEC shall implement throughout each state in which it offers
telephone exchange service intraLATA and interLATA toll dialing parity
based on
[[Page 23]]
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.
(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.
(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.
(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.
[61 FR 47349, Sept. 6, 1996]
Sec. 51.213 Toll dialing parity implementation plans.
(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 the appropriate state
commission or the Commission.
(b) A LEC's implementation plan must include:
(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
(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.
(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.
[61 FR 47349, Sept. 6, 1996, as amended at 71 FR 65750, Nov. 9, 2006]
Sec. 51.215 Dialing parity: Cost recovery.
(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.
(b) Any cost recovery mechanism for the provision of toll dialing
parity pursuant to this section that a state adopts must not:
(1) Give one service provider an appreciable cost advantage over
another service provider, when competing for a specific subscriber
(i.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
(2) Have a disparate effect on the ability of competing service
providers to earn a normal return on their investment.
[61 FR 47350, Sept. 6, 1996]
Sec. 51.217 Nondiscriminatory access: Telephone numbers, operator
services, directory assistance services, and directory listings.
(a) Definitions. As used in this section, the following definitions
apply:
(1) Competing provider. 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.
(2) Nondiscriminatory access. ``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
[[Page 24]]
carrier (LEC) itself receives. Nondiscriminatory access includes, but is
not limited to:
(i) Nondiscrimination between and among carriers in the rates,
terms, and conditions of the access provided; and
(ii) The ability of the competing provider to obtain access that is
at least equal in quality to that of the providing LEC.
(3) Providing local exchange carrier (LEC). A ``providing local
exchange carrier'' is a local exchange carrier (LEC) that is required to
permit nondiscriminatory access to a competing provider.
(b) General rule. 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.
(c) Specific requirements. A LEC subject to paragraph (b) of this
section must also comply with the following requirements:
(1) Telephone numbers. A LEC shall permit competing providers to
have access to telephone numbers that is identical to the access that
the LEC provides to itself.
(2) Operator services. 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.
(3) Directory assistance services and directory listings--(i) Access
to directory assistance. 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.
(ii) Access to directory listings. 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.
(iii) Format. A LEC shall provide access to its directory assistance
services, including directory assistance databases, and to its directory
listings in any format the competing provider specifies, if the LEC's
internal systems can accommodate that format.
(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:
(1) 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
(2) Provide the requested directory assistance or directory listings
in the format the competing provider chooses from among the available
formats.
(B) [Reserved]
(iv) Unlisted numbers. 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,
[[Page 25]]
that is available to its own directory assistance customers.
(v) Adjuncts to services. Operator services and directory assistance
services must be made available to competing providers in their
entirety, including access to any adjunct features (e.g., rating tables
or customer information databases) necessary to allow competing
providers full use of these services.
(d) Branding of operator services and directory assistance services.
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.
(e) Disputes--(1) Disputes involving nondiscriminatory access. 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:
(i) That it is permitting nondiscriminatory access, and
(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.
(2) Disputes involving unreasonable dialing delay. 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.
[61 FR 47350, Sept. 6, 1996, as amended at 64 FR 51911, Sept. 27, 1999]
Effective Date Note: At 64 FR 51911, Sept. 27, 1999, Sec. 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.
Sec. 51.219 Access to rights of way.
The rules governing access to rights of way are set forth in part 1,
subpart J of this chapter.
Sec. 51.221 Reciprocal compensation.
The rules governing reciprocal compensation are set forth in subpart
H of this part.
Sec. 51.223 Application of additional requirements.
(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.
(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 incumbent LEC, or that a class or category of LECs be
treated as incumbent LECs, pursuant to section 251(h)(2) of the Act.
Sec. 51.230 Presumption of acceptability for deployment of an
advanced services loop technology.
(a) An advanced services loop technology is presumed acceptable for
deployment under any one of the following circumstances, where the
technology:
(1) Complies with existing industry standards; or
(2) Is approved by an industry standards body, the Commission, or
any state commission; or
(3) Has been successfully deployed by any carrier without
significantly degrading the performance of other services.
(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
[[Page 26]]
other advanced services or traditional voiceband services.
(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.
[65 FR 1345, Jan. 10, 2000]
Sec. 51.231 Provision of information on advanced services deployment.
(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:
(1) Uses in determining which services can be deployed; and
information with respect to the spectrum management procedures and
policies that the incumbent LEC.
(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
(3) Information with respect to the number of loops using advanced
services technology within the binder and type of technology deployed on
those loops.
(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.
(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.
(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.
(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.
[65 FR 1345, Jan. 10, 2000]
Sec. 51.232 Binder group management.
(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.
(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 Sec. 1.2 of this
chapter.
[65 FR 1346, Jan. 10, 2000]
Sec. 51.233 Significant degradation of services caused by
deployment of advanced services.
(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.
(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.
(c) Any claims of network harm presented to the deploying carrier(s)
or, if subsequently necessary, the relevant
[[Page 27]]
state commission, must be supported with specific and verifiable
information.
(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.
(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 Sec. 51.230,
the degraded service shall not prevail against the newly-deployed
technology.
[65 FR 1346, Jan. 10, 2000]
Subpart D_Additional Obligations of Incumbent Local Exchange Carriers
Sec. 51.301 Duty to negotiate.
(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.
(b) A requesting telecommunications carrier shall negotiate in good
faith the terms and conditions of agreements described in paragraph (a)
of this section.
(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:
(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;
(2) Demanding that a requesting telecommunications carrier attest
that an agreement complies with all provisions of the Act, federal
regulations, or state law;
(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;
(4) Conditioning negotiation on a requesting telecommunications
carrier first obtaining state certifications;
(5) Intentionally misleading or coercing another party into reaching
an agreement that it would not otherwise have made;
(6) Intentionally obstructing or delaying negotiations or
resolutions of disputes;
(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
(8) Refusing to provide information necessary to reach agreement.
Such refusal includes, but is not limited to:
(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
(ii) Refusal by an incumbent LEC to furnish cost data that would be
relevant to setting rates if the parties were in arbitration.
[61 FR 45619, Aug. 29, 1996, as amended at 68 FR 52294, Sept. 2, 2003]
Sec. 51.303 Preexisting agreements.
(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.
(b) Interconnection agreements negotiated before February 8, 1996,
between Class A carriers, as defined by Sec. 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.
(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 Sec. 51.809 of this part. A state commission may reject a
preexisting agreement on
[[Page 28]]
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.
Sec. 51.305 Interconnection.
(a) An incumbent LEC shall provide, for the facilities and equipment
of any requesting telecommunications carrier, interconnection with the
incumbent LEC's network:
(1) For the transmission and routing of telephone exchange traffic,
exchange access traffic, or both;
(2) At any technically feasible point within the incumbent LEC's
network including, at a minimum:
(i) The line-side of a local switch;
(ii) The trunk-side of a local switch;
(iii) The trunk interconnection points for a tandem switch;
(iv) Central office cross-connect points;
(v) Out-of-band signaling transfer points necessary to exchange
traffic at these points and access call-related databases; and
(vi) The points of access to unbundled network elements as described
in Sec. 51.319;
(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. 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; and
(4) 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.
(b) A carrier that requests interconnection solely for the purpose
of originating or terminating its interexchange traffic on an incumbent
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.
(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.
(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.
(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.
(f) If technically feasible, an incumbent LEC shall provide two-way
trunking upon request.
(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.
[61 FR 45619, Aug. 29, 1996, as amended at 61 FR 47351, Sept. 6, 1996;
68 FR 52294, Sept. 2, 2003]
Sec. 51.307 Duty to provide access on an unbundled basis to network
elements.
(a) An incumbent LEC shall provide, to a requesting
telecommunications
[[Page 29]]
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.
(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.
(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.
(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.
(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.
[61 FR 45619, Aug. 29, 1996, as amended at 61 FR 47351, Sept. 6, 1996]
Sec. 51.309 Use of unbundled network elements.
(a) Except as provided in Sec. 51.318, an incumbent LEC shall not
impose limitations, restrictions, or requirements on requests for, or
the use of, unbundled network elements for the service a requesting
telecommunications carrier seeks to offer.
(b) A requesting telecommunications carrier may not access an
unbundled network element for the exclusive provision of mobile wireless
services or interexchange services.
(c) A telecommunications carrier purchasing access to an unbundled
network facility is entitled to exclusive 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.
(d) A requesting telecommunications carrier that accesses and uses
an unbundled network element consistent with paragraph (b) of this
section may provide any telecommunications services over the same
unbundled network element.
(e) Except as provided in Sec. 51.318, an incumbent LEC shall
permit a requesting telecommunications carrier to commingle an unbundled
network element or a combination of unbundled network elements with
wholesale services obtained from an incumbent LEC.
(f) Upon request, an incumbent LEC shall perform the functions
necessary to commingle an unbundled network element or a combination of
unbundled network elements with one or more facilities or services that
a requesting telecommunications carrier has obtained at wholesale from
an incumbent LEC.
(g) An incumbent LEC shall not deny access to an unbundled network
element or a combination of unbundled network elements on the grounds
that one or more of the elements:
(1) Is connected to, attached to, linked to, or combined with, a
facility or service obtained from an incumbent LEC; or
(2) Shares part of the incumbent LEC's network with access services
or inputs for mobile wireless services and/or interexchange services.
[61 FR 45619, Aug. 29, 1996, as amended at 68 FR 52294, Sept. 2, 2003;
70 FR 8952, Feb. 24, 2005]
[[Page 30]]
Sec. 51.311 Nondiscriminatory access to unbundled network elements.
(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.
(b) 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.
(c) 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.
(d) 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.
[61 FR 45619, Aug. 29, 1996, as amended at 68 FR 52294, Sept. 2, 2003]
Sec. 51.313 Just, reasonable and nondiscriminatory terms and
conditions for the provision of unbundled network elements.
(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.
(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.
(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.
Sec. 51.315 Combination of unbundled network elements.
(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.
(b) Except upon request, an incumbent LEC shall not separate
requested network elements that the incumbent LEC currently combines.
(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:
(1) Is technically feasible; and
(2) Would not undermine the ability of other carriers to obtain
access to unbundled network elements or to interconnect with the
incumbent LEC's network.
(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.
(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.
(f) An incumbent LEC that denies a request to combine unbundled
network
[[Page 31]]
elements pursuant to paragraph (c)(2) of this section must demonstrate
to the state commission that the requested combination would undermine
the ability of other carriers to obtain access to unbundled network
elements or to interconnect with the incumbent LEC's network.
[61 FR 45619, Aug. 29, 1996, as amended at 68 FR 52294, Sept. 2, 2003]
Sec. 51.316 Conversion of unbundled network elements and services.
(a) Upon request, an incumbent LEC shall convert a wholesale
service, or group of wholesale services, to the equivalent unbundled
network element, or combination of unbundled network elements, that is
available to the requesting telecommunications carrier under section
251(c)(3) of the Act and this part.
(b) An incumbent LEC shall perform any conversion from a wholesale
service or group of wholesale services to an unbundled network element
or combination of unbundled network elements without adversely affecting
the service quality perceived by the requesting telecommunications
carrier's end-user customer.
(c) Except as agreed to by the parties, an incumbent LEC shall not
impose any untariffed termination charges, or any disconnect fees, re-
connect fees, or charges associated with establishing a service for the
first time, in connection with any conversion between a wholesale
service or group of wholesale services and an unbundled network element
or combination of unbundled network elements.
[68 FR 52294, Sept. 2, 2003]
Sec. 51.317 Standards for requiring the unbundling of network
elements.
(a) Proprietary network elements. 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:
(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
telecommunications 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,'' the Commission may
require the unbundling of such proprietary network element.
(2) In the event that such access is not ``necessary,'' the
Commission may require unbundling if it is determined that:
(i) The incumbent LEC has implemented only a minor modification to
the network element in order to qualify for proprietary treatment;
(ii) The information or functionality that is proprietary in nature
does not differentiate the incumbent LEC's services from the requesting
telecommunications carrier's services; or
(iii) Lack of access to such element would jeopardize the goals of
the Act.
(b) Non-proprietary network elements. The Commission shall determine
whether a non-proprietary network element should be made available for
purposes of section 251(c)(3) of the Act by analyzing, at a minimum,
whether lack of access to a non-proprietary network element ``impairs''
a requesting 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 elements self-provisioned
by the requesting carrier or acquired as an alternative from a third-
party supplier, lack of access to that element poses a barrier or
barriers to entry, including operational and economic barriers, that are
likely to make entry into a market by a reasonably efficient competitor
uneconomic.
[70 FR 8952, Feb. 24, 2005]
[[Page 32]]
Sec. 51.318 Eligibility criteria for access to certain unbundled
network elements.
(a) Except as provided in paragraph (b) of this section, an
incumbent LEC shall provide access to unbundled network elements and
combinations of unbundled network elements without regard to whether the
requesting telecommunications carrier seeks access to the elements to
establish a new circuit or to convert an existing circuit from a service
to unbundled network elements.
(b) An incumbent LEC need not provide access to an unbundled DS1
loop in combination, or commingled, with a dedicated DS1 transport or
dedicated DS3 transport facility or service, or to an unbundled DS3 loop
in combination, or commingled, with a dedicated DS3 transport facility
or service, or an unbundled dedicated DS1 transport facility in
combination, or commingled, with an unbundled DS1 loop or a DS1 channel
termination service, or to an unbundled dedicated DS3 transport facility
in combination, or commingled, with an unbundled DS1 loop or a DS1
channel termination service, or to an unbundled DS3 loop or a DS3
channel termination service, unless the requesting telecommunications
carrier certifies that all of the following conditions are met:
(1) The requesting telecommunications carrier has received state
certification to provide local voice service in the area being served
or, in the absence of a state certification requirement, has complied
with registration, tariffing, filing fee, or other regulatory
requirements applicable to the provision of local voice service in that
area.
(2) The following criteria are satisfied for each combined circuit,
including each DS1 circuit, each DS1 enhanced extended link, and each
DS1-equivalent circuit on a DS3 enhanced extended link:
(i) Each circuit to be provided to each customer will be assigned a
local number prior to the provision of service over that circuit;
(ii) Each DS1-equivalent circuit on a DS3 enhanced extended link
must have its own local number assignment, so that each DS3 must have at
least 28 local voice numbers assigned to it;
(iii) Each circuit to be provided to each customer will have 911 or
E911 capability prior to the provision of service over that circuit;
(iv) Each circuit to be provided to each customer will terminate in
a collocation arrangement that meets the requirements of paragraph (c)
of this section;
(v) Each circuit to be provided to each customer will be served by
an interconnection trunk that meets the requirements of paragraph (d) of
this section;
(vi) For each 24 DS1 enhanced extended links or other facilities
having equivalent capacity, the requesting telecommunications carrier
will have at least one active DS1 local service interconnection trunk
that meets the requirements of paragraph (d) of this section; and
(vii) Each circuit to be provided to each customer will be served by
a switch capable of switching local voice traffic.
(c) A collocation arrangement meets the requirements of this
paragraph if it is:
(1) Established pursuant to section 251(c)(6) of the Act and located
at an incumbent LEC premises within the same LATA as the customer's
premises, when the incumbent LEC is not the collocator; and
(2) Located at a third party's premises within the same LATA as the
customer's premises, when the incumbent LEC is the collocator.
(d) An interconnection trunk meets the requirements of this
paragraph if the requesting telecommunications carrier will transmit the
calling party's number in connection with calls exchanged over the
trunk.
[68 FR 52295, Sept. 2, 2003, as amended at 68 FR 64000, Nov. 12, 2003]
Sec. 51.319 Specific unbundling requirements.
(a) Local loops. An incumbent LEC shall provide a requesting
telecommunications carrier with nondiscriminatory access to the local
loop on an unbundled basis, in accordance with section 251(c)(3) of the
Act and this part and as set forth in paragraphs (a)(1) through (a)(9)
of this section. The local loop network element is defined
[[Page 33]]
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. This element includes all
features, functions, and capabilities of such transmission facility,
including the network interface device. It also includes all
electronics, optronics, and intermediate devices (including repeaters
and load coils) used to establish the transmission path to the end-user
customer premises as well as any inside wire owned or controlled by the
incumbent LEC that is part of that transmission path.
(1) Copper loops. An incumbent LEC shall provide a requesting
telecommunications carrier with nondiscriminatory access to the copper
loop on an unbundled basis. A copper loop is a stand-alone local loop
comprised entirely of copper wire or cable. Copper loops include two-
wire and four-wire analog voice-grade copper loops, digital copper loops
(e.g., DS0s and integrated services digital network lines), as well as
two-wire and four-wire copper loops conditioned to transmit the digital
signals needed to provide digital subscriber line services, regardless
of whether the copper loops are in service or held as spares. The copper
loop includes attached electronics using time division multiplexing
technology, but does not include packet switching capabilities as
defined in paragraph (a)(2)(i) of this section. The availability of DS1
and DS3 copper loops is subject to the requirements of paragraphs (a)(4)
and (a)(5) of this section.
(i) Line sharing. Beginning on the effective date of the
Commission's Triennial Review Order, the high frequency portion of a
copper loop shall no longer be required to be provided as an unbundled
network element, subject to the transitional line sharing conditions in
paragraphs (a)(1)(i)(A) and (a)(1)(i)(B) of this section. Line sharing
is the process by which a requesting telecommunications carrier provides
digital subscriber line service over the same copper loop that the
incumbent LEC uses to provide voice service, with the incumbent LEC
using the low frequency portion of the loop and the requesting
telecommunications carrier using the high frequency portion of the loop.
The high frequency portion of the loop consists of the frequency range
on the copper loop above the range that carries analog circuit-switched
voice transmissions. This portion of the loop includes the features,
functions, and capabilities of the loop that are used to establish a
complete transmission path on the high frequency range between the
incumbent LEC's distribution frame (or its equivalent) in its central
office and the demarcation point at the end-user customer premises, and
includes the high frequency portion of any inside wire owned or
controlled by the incumbent LEC.
(A) Line sharing customers before the effective date of the
Commission's Triennial Review Order. An incumbent LEC shall provide a
requesting telecommunications carrier with the ability to engage in line
sharing over a copper loop where, prior to the effective date of the
Commission's Triennial Review Order, the requesting telecommunications
carrier began providing digital subscriber line service to a particular
end-user customer and has not ceased providing digital subscriber line
service to that customer. Until such end-user customer cancels or
otherwise discontinues its subscription to the digital subscriber line
service of the requesting telecommunications carrier, or its successor
or assign, an incumbent LEC shall continue to provide access to the high
frequency portion of the loop at the same rate that the incumbent LEC
charged for such access prior to the effective date of the Commission's
Triennial Review Order.
(B) Line sharing customers on or after the effective date of the
Commission's Triennial Review Order. An incumbent LEC shall provide a
requesting telecommunications carrier with the ability to engage in line
sharing over a copper loop, between the effective date of the
Commission's Triennial Review Order and three years after that effective
date, where the requesting telecommunications carrier began providing
digital subscriber line service to a particular end-user customer on or
before the date one year after that effective date. Beginning three
years
[[Page 34]]
after the effective date of the Commission's Triennial Review Order, the
incumbent LEC is no longer required to provide a requesting
telecommunications carrier with the ability to engage in line sharing
for this end-user customer or any new end-user customer. Between the
effective date of the Commission's Triennial Review Order and three
years after that effective date, an incumbent LEC shall provide a
requesting telecommunications carrier with access to the high frequency
portion of a copper loop in order to serve line sharing customers
obtained between the effective date of the Commission's Triennial Review
Order and one year after that effective date in the following manner:
(1) During the first year following the effective date of the
Commission's Triennial Review Order, the incumbent LEC shall provide
access to the high frequency portion of a copper loop at 25 percent of
the state-approved monthly recurring rate, or 25 percent of the monthly
recurring rate set forth in the incumbent LEC's and requesting
telecommunications carrier's interconnection agreement, for access to a
copper loop in effect on that date.
(2) Beginning one year plus one day after the effective date of the
Commission's Triennial Review Order until two years after that effective
date, the incumbent LEC shall provide access to the high frequency
portion of a copper loop at 50 percent of the state-approved monthly
recurring rate, or 50 percent of the monthly recurring rate set forth in
the incumbent LEC's and requesting telecommunications carrier's
interconnection agreement, for access to a copper loop in effect on the
effective date of the Commission's Triennial Review Order.
(3) Beginning two years plus one day after effective date of the
Commission's Triennial Review Order until three years after that
effective date, the incumbent LEC shall provide access to the high
frequency portion of a copper loop at 75 percent of the state-approved
monthly recurring rate, or 75 percent of the monthly recurring rate set
forth in the incumbent LEC's and requesting telecommunications carrier's
interconnection agreement, for access to a copper loop in effect on the
effective date of the Commission's Triennial Review Order.
(ii) Line splitting. An incumbent LEC shall provide a requesting
telecommunications carrier that obtains an unbundled copper loop from
the incumbent LEC with the ability to engage in line splitting
arrangements with another competitive LEC using a splitter collocated at
the central office where the loop terminates into a distribution frame
or its equivalent. Line splitting is the process in which one
competitive LEC provides narrowband voice service over the low frequency
portion of a copper loop and a second competitive LEC provides digital
subscriber line service over the high frequency portion of that same
loop.
(A) An incumbent LEC's obligation, under paragraph (a)(1)(ii) of
this section, to provide a requesting telecommunications carrier with
the ability to engage in line splitting applies regardless of whether
the carrier providing voice service provides its own switching or
obtains local circuit switching as an unbundled network element pursuant
to paragraph (d) of this section.
(B) An incumbent LEC must make all necessary network modifications,
including providing nondiscriminatory access to operations support
systems necessary for pre-ordering, ordering, provisioning, maintenance
and repair, and billing for loops used in line splitting arrangements.
(iii) Line conditioning. The incumbent LEC shall condition a copper
loop at the request of the carrier seeking access to a copper loop under
paragraph (a)(1) of this section, the high frequency portion of a copper
loop under paragraph (a)(1)(i) of this section, or a copper subloop
under paragraph (b) of this section to ensure that the copper loop or
copper subloop is suitable for providing digital subscriber line
services, including those provided over the high frequency portion of
the copper loop or copper subloop, whether or not the incumbent LEC
offers advanced services to the end-user customer on that copper loop or
copper subloop. If the incumbent LEC seeks compensation from the
requesting telecommunications carrier for line conditioning, the
requesting telecommunications
[[Page 35]]
carrier has the option of refusing, in whole or in part, to have the
line conditioned; and a requesting telecommunications carrier's refusal
of some or all aspects of line conditioning will not diminish any right
it may have, under paragraphs (a) and (b) of this section, to access the
copper loop, the high frequency portion of the copper loop, or the
copper subloop.
(A) Line conditioning is defined as the removal from a copper loop
or copper subloop of any device that could diminish the capability of
the loop or subloop to deliver high-speed switched wireline
telecommunications capability, including digital subscriber line
service. Such devices include, but are not limited to, bridge taps, load
coils, low pass filters, and range extenders.
(B) Incumbent LECs shall recover the costs 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 and in compliance with rules governing
nonrecurring costs in Sec. 51.507(e).
(C) Insofar as it is technically feasible, the incumbent LEC shall
test and report troubles for all the features, functions, and
capabilities of conditioned copper lines, and may not restrict its
testing to voice transmission only.
(D) Where the requesting telecommunications carrier is seeking
access to the high frequency portion of a copper loop or copper subloop
pursuant to paragraphs (a) or (b) of this section and the incumbent LEC
claims that conditioning that loop or subloop will significantly
degrade, as defined in Sec. 51.233, the voiceband services that the
incumbent LEC is currently providing over that loop or subloop, the
incumbent LEC must either:
(1) Locate another copper loop or copper subloop that has been or
can be conditioned, migrate the incumbent LEC's voiceband service to
that loop or subloop, and provide the requesting telecommunications
carrier with access to the high frequency portion of that alternative
loop or subloop; or
(2) Make a showing to the state commission that the original copper
loop or copper subloop cannot be conditioned without significantly
degrading voiceband services on that loop or subloop, as defined in
Sec. 51.233, and that there is no adjacent or alternative copper loop
or copper subloop available that can be conditioned or to which the end-
user customer's voiceband service can be moved to enable line sharing.
(E) If, after evaluating the incumbent LEC's showing under paragraph
(a)(1)(iii)(D)(2) of this section, the state commission concludes that a
copper loop or copper subloop cannot be conditioned without
significantly degrading the voiceband service, the incumbent LEC cannot
then or subsequently condition that loop or subloop to provide advanced
services to its own customers without first making available to any
requesting telecommunications carrier the high frequency portion of the
newly conditioned loop or subloop.
(iv) Maintenance, repair, and testing. (A) An incumbent LEC shall
provide, on a nondiscriminatory basis, physical loop test access points
to a requesting telecommunications carrier at the splitter, through a
cross-connection to the requesting telecommunications carrier's
collocation space, or through a standardized interface, such as an
intermediate distribution frame or a test access server, for the purpose
of testing, maintaining, and repairing copper loops and copper subloops.
(B) An incumbent LEC seeking to utilize an alternative physical
access methodology may request approval to do so from the state
commission, but must show that the proposed alternative method is
reasonable and nondiscriminatory, and will not disadvantage a requesting
telecommunications carrier's ability to perform loop or service testing,
maintenance, or repair.
(v) Control of the loop and splitter functionality. In situations
where a requesting telecommunications carrier is obtaining access to the
high frequency portion of a copper loop either through a line sharing or
line splitting arrangement, the incumbent LEC may maintain control over
the loop and splitter equipment and functions, and shall provide to the
requesting telecommunications carrier loop and splitter functionality
that is compatible with any transmission technology that the requesting
telecommunications
[[Page 36]]
carrier seeks to deploy using the high frequency portion of the loop, as
defined in paragraph (a)(1)(i) of this section, provided that such
transmission technology is presumed to be deployable pursuant to Sec.
51.230.
(2) Hybrid loops. A hybrid loop is a local loop composed of both
fiber optic cable, usually in the feeder plant, and copper wire or
cable, usually in the distribution plant.
(i) Packet switching facilities, features, functions, and
capabilities. An incumbent LEC is not required to provide unbundled
access to the packet switched features, functions and capabilities of
its hybrid loops. Packet switching capability is the routing or
forwarding of packets, frames, cells, or other data units based on
address or other routing information contained in the packets, frames,
cells or other data units, and the functions that are performed by the
digital subscriber line access multiplexers, including but not limited
to the ability to terminate an end-user customer's copper loop (which
includes both a low-band voice channel and a high-band data channel, or
solely a data channel); the ability to forward the voice channels, if
present, to a circuit switch or multiple circuit switches; the ability
to extract data units from the data channels on the loops; and the
ability to combine data units from multiple loops onto one or more
trunks connecting to a packet switch or packet switches.
(ii) Broadband services. When a requesting telecommunications
carrier seeks access to a hybrid loop for the provision of broadband
services, an incumbent LEC shall provide the requesting
telecommunications carrier with nondiscriminatory access to the time
division multiplexing features, functions, and capabilities of that
hybrid loop, including DS1 or DS3 capacity (where impairment has been
found to exist), on an unbundled basis to establish a complete
transmission path between the incumbent LEC's central office and an end
user's customer premises. This access shall include access to all
features, functions, and capabilities of the hybrid loop that are not
used to transmit packetized information.
(iii) Narrowband services. When a requesting telecommunications
carrier seeks access to a hybrid loop for the provision of narrowband
services, the incumbent LEC may either:
(A) Provide nondiscriminatory access, on an unbundled basis, to an
entire hybrid loop capable of voice-grade service (i.e., equivalent to
DS0 capacity), using time division multiplexing technology; or
(B) Provide nondiscriminatory access to a spare home-run copper loop
serving that customer on an unbundled basis.
(3) Fiber loops. (i) Definitions. (A) Fiber-to-the-home loops. A
fiber-to-the-home loop is a local loop consisting entirely of fiber
optic cable, whether dark or lit, serving an end user's customer
premises or, in the case of predominantly residential multiple dwelling
units (MDUs), a fiber optic cable, whether dark or lit, that extends to
the multiunit premises' minimum point of entry (MPOE).
(B) Fiber-to-the-curb loops. A fiber-to-the-curb loop is a local
loop consisting of fiber optic cable connecting to a copper distribution
plant that is not more than 500 feet from the customer's premises or, in
the case of predominantly residential MDUs, not more than 500 feet from
the MDU's MPOE. The fiber optic cable in a fiber-to-the-curb loop must
connect to a copper distribution plant at a serving area interface from
which every other copper distribution subloop also is not more than 500
feet from the respective customer's premises.
(ii) New builds. An incumbent LEC is not required to provide
nondiscriminatory access to a fiber-to-the-home loop or a fiber-to-the-
curb loop on an unbundled basis when the incumbent LEC deploys such a
loop to an end user's customer premises that previously has not been
served by any loop facility.
(iii) Overbuilds. An incumbent LEC is not required to provide
nondiscriminatory access to a fiber-to-the-home loop or a fiber-to-the-
curb loop on an unbundled basis when the incumbent LEC has deployed such
a loop parallel to, or in replacement of, an existing copper loop
facility, except that:
(A) The incumbent LEC must maintain the existing copper loop
connected to the particular customer premises
[[Page 37]]
after deploying the fiber-to-the-home loop or the fiber-to-the-curb loop
and provide nondiscriminatory access to that copper loop on an unbundled
basis unless the incumbent LEC retires the copper loops pursuant to
paragraph (a)(3)(iv) of this section.
(B) An incumbent LEC that maintains the existing copper loops
pursuant to paragraph (a)(3)(iii)(A) of this section need not incur any
expenses to ensure that the existing copper loop remains capable of
transmitting signals prior to receiving a request for access pursuant to
that paragraph, in which case the incumbent LEC shall restore the copper
loop to serviceable condition upon request.
(C) An incumbent LEC that retires the copper loop pursuant to
paragraph (a)(3)(iv) of this section shall provide nondiscriminatory
access to a 64 kilobits per second transmission path capable of voice
grade service over the fiber-to-the-home loop or fiber-to-the-curb loop
on an unbundled basis.
(iv) Retirement of copper loops or copper subloops. Prior to
retiring any copper loop or copper subloop that has been replaced with a
fiber-to-the-home loop or a fiber-to-the-curb loop, an incumbent LEC
must comply with:
(A) The network disclosure requirements set forth in section
251(c)(5) of the Act and in Sec. 51.325 through Sec. 51.335; and
(B) Any applicable state requirements.
(4) DS1 loops. (i) Subject to the cap described in paragraph
(a)(4)(ii) of this section, an incumbent LEC shall provide a requesting
telecommunications carrier with nondiscriminatory access to a DS1 loop
on an unbundled basis to any building not served by a wire center with
at least 60,000 business lines and at least four fiber-based
collocators. Once a wire center exceeds both of these thresholds, no
future DS1 loop unbundling will be required in that wire center. A DS1
loop is a digital local loop having a total digital signal speed of
1.544 megabytes per second. DS1 loops include, but are not limited to,
two-wire and four-wire copper loops capable of providing high-bit rate
digital subscriber line services, including T1 services.
(ii) Cap on unbundled DS1 loop circuits. A requesting
telecommunications carrier may obtain a maximum of ten unbundled DS1
loops to any single building in which DS1 loops are available as
unbundled loops.
(iii) Transition period for DS1 loop circuits. For a 12-month period
beginning on the effective date of the Triennial Review Remand Order,
any DS1 loop UNEs that a competitive LEC leases from the incumbent LEC
as of that date, but which the incumbent LEC is not obligated to
unbundle pursuant to paragraphs (a)(4)(i) or (a)(4)(ii) of this section,
shall be available for lease from the incumbent LEC at a rate equal to
the higher of 115% of the rate the requesting carrier paid for the loop
element on June 15, 2004, or, 115% of the rate the state commission has
established or establishes, if any, between June 16, 2004, and the
effective date of the Triennial Review Remand Order, for that loop
element. Where incumbent LECs are not required to provide unbundled DS1
loops pursuant to paragraphs (a)(4)(i) or (a)(4)(ii) of this section,
requesting carriers may not obtain new DS1 loops as unbundled network
elements.
(5) DS3 loops. (i) Subject to the cap described in paragraph
(a)(5)(ii) of this section, an incumbent LEC shall provide a requesting
telecommunications carrier with nondiscriminatory access to a DS3 loop
on an unbundled basis to any building not served by a wire center with
at least 38,000 business lines and at least four fiber-based
collocators. Once a wire center exceeds both of these thresholds, no
future DS3 loop unbundling will be required in that wire center. A DS3
loop is a digital local loop having a total digital signal speed of
44.736 megabytes per second.
(ii) Cap on unbundled DS3 loop circuits. A requesting
telecommunications carrier may obtain a maximum of a single unbundled
DS3 loop to any single building in which DS3 loops are available as
unbundled loops.
(iii) Transition period for DS3 loop circuits. For a 12-month period
beginning on the effective date of the Triennial Review Remand Order,
any DS3 loop UNEs that a competitive LEC leases from the incumbent LEC
as of that
[[Page 38]]
date, but which the incumbent LEC is not obligated to unbundle pursuant
to paragraphs (a)(5)(i) or (a)(5)(ii) of this section, shall be
available for lease from the incumbent LEC at a rate equal to the higher
of 115% of the rate the requesting carrier paid for the loop element on
June 15, 2004, or, 115% of the rate the state commission has established
or establishes, if any, between June 16, 2004, and the effective date of
the Triennial Review Remand Order, for that loop element. Where
incumbent LECs are not required to provide unbundled DS3 loops pursuant
to paragraphs (a)(5)(i) or (a)(5)(ii) of this section, requesting
carriers may not obtain new DS3 loops as unbundled network elements.
(6) Dark fiber loops. (i) An incumbent LEC is not required to
provide requesting telecommunications carriers with access to a dark
fiber loop on an unbundled basis. Dark fiber is fiber within an existing
fiber optic cable that has not yet been activated through optronics to
render it capable of carrying communications services.
(ii) Transition period for dark fiber loop circuits. For an 18-month
period beginning on the effective date of the Triennial Review Remand
Order, any dark fiber loop UNEs that a competitive LEC leases from the
incumbent LEC as of that date shall be available for lease from the
incumbent LEC at a rate equal to the higher of 115% of the rate the
requesting carrier paid for the loop element on June 15, 2004, or, 115%
of the rate the state commission has established or establishes, if any,
between June 16, 2004, and the effective date of the Triennial Review
Remand Order, for that loop element. Requesting carriers may not obtain
new dark fiber loops as unbundled network elements.
(7) Routine network modifications. (i) An incumbent LEC shall make
all routine network modifications to unbundled loop facilities used by
requesting telecommunications carriers where the requested loop facility
has already been constructed. An incumbent LEC shall perform these
routine network modifications to unbundled loop facilities in a
nondiscriminatory fashion, without regard to whether the loop facility
being accessed was constructed on behalf, or in accordance with the
specifications, of any carrier.
(ii) A routine network modification is an activity that the
incumbent LEC regularly undertakes for its own customers. Routine
network modifications include, but are not limited to, rearranging or
splicing of cable; adding an equipment case; adding a doubler or
repeater; adding a smart jack; installing a repeater shelf; adding a
line card; deploying a new multiplexer or reconfiguring an existing
multiplexer; and attaching electronic and other equipment that the
incumbent LEC ordinarily attaches to a DS1 loop to activate such loop
for its own customer. They also include activities needed to enable a
requesting telecommunications carrier to obtain access to a dark fiber
loop. Routine network modifications may entail activities such as
accessing manholes, deploying bucket trucks to reach aerial cable, and
installing equipment casings. Routine network modifications do not
include the construction of a new loop, or the installation of new
aerial or buried cable for a requesting telecommunications carrier.
(8) Engineering policies, practices, and procedures. An incumbent
LEC shall not engineer the transmission capabilities of its network in a
manner, or engage in any policy, practice, or procedure, that disrupts
or degrades access to a local loop or subloop, including the time
division multiplexing-based features, functions, and capabilities of a
hybrid loop, for which a requesting telecommunications carrier may
obtain or has obtained access pursuant to paragraph (a) of this section.
(b) Subloops. An incumbent LEC shall provide a requesting
telecommunications carrier with nondiscriminatory access to subloops on
an unbundled basis in accordance with section 251(c)(3) of the Act and
this part and as set forth in paragraph (b) of this section.
(1) Copper subloops. An incumbent LEC shall provide a requesting
telecommunications carrier with nondiscriminatory access to a copper
subloop on an unbundled basis. A copper subloop is a portion of a copper
loop, or hybrid loop, comprised entirely of copper wire or copper cable
that acts
[[Page 39]]
as a transmission facility between any point of technically feasible
access in an incumbent LEC's outside plant, including inside wire owned
or controlled by the incumbent LEC, and the end-user customer premises.
A copper subloop includes all intermediate devices (including repeaters
and load coils) used to establish a transmission path between a point of
technically feasible access and the demarcation point at the end-user
customer premises, and includes the features, functions, and
capabilities of the copper loop. Copper subloops include two-wire and
four-wire analog voice-grade subloops as well as two-wire and four-wire
subloops conditioned to transmit the digital signals needed to provide
digital subscriber line services, regardless of whether the subloops are
in service or held as spares.
(i) Point of technically feasible access. A point of technically
feasible access is any point in the incumbent LEC's outside plant where
a technician can access the copper wire within a cable without removing
a splice case. Such points include, but are not limited to, a pole or
pedestal, the serving area interface, the network interface device, the
minimum point of entry, any remote terminal, and the feeder/distribution
interface. An incumbent LEC shall, upon a site-specific request, provide
access to a copper subloop at a splice near a remote terminal. The
incumbent LEC shall be compensated for providing this access in
accordance with Sec. Sec. 51.501 through 51.515.
(ii) Rules for collocation. Access to the copper subloop is subject
to the Commission's collocation rules at Sec. Sec. 51.321 and 51.323.
(2) Subloops for access to multiunit premises wiring. An incumbent
LEC shall provide a requesting telecommunications carrier with
nondiscriminatory access to the subloop for access to multiunit premises
wiring on an unbundled basis regardless of the capacity level or type of
loop that the requesting telecommunications carrier seeks to provision
for its customer. The subloop for access to multiunit premises wiring is
defined as any portion of the loop that it is technically feasible to
access at a terminal in the incumbent LEC's outside plant at or near a
multiunit premises. One category of this subloop is inside wire, which
is defined for purposes of this section as all loop plant owned or
controlled by the incumbent LEC at a multiunit customer premises between
the minimum point of entry as defined in Sec. 68.105 of this chapter
and the point of demarcation of the incumbent LEC's network as defined
in Sec. 68.3 of this chapter.
(i) Point of technically feasible access. A point of technically
feasible access is any point in the incumbent LEC's outside plant at or
near a multiunit premises where a technician can access the wire or
fiber within the cable without removing a splice case to reach the wire
or fiber within to access the wiring in the multiunit premises. Such
points include, but are not limited to, a pole or pedestal, the network
interface device, the minimum point of entry, the single point of
interconnection, and the feeder/distribution interface.
(ii) Single point of interconnection. Upon notification by a
requesting telecommunications carrier that it requests interconnection
at a multiunit premises where the incumbent LEC owns, controls, or
leases wiring, the incumbent LEC shall provide a single point of
interconnection that is suitable for use by multiple carriers. This
obligation is in addition to the incumbent LEC's obligations, under
paragraph (b)(2) of this section, to provide nondiscriminatory access to
a subloop for access to multiunit premises wiring, including any inside
wire, at any technically feasible point. If the parties are unable to
negotiate rates, terms, and conditions under which the incumbent LEC
will provide this single point of interconnection, then any issues in
dispute regarding this obligation shall be resolved in state proceedings
under section 252 of the Act.
(3) Other subloop provisions--(i) Technical feasibility. If parties
are unable to reach agreement through voluntary negotiations as to
whether it is technically feasible, or whether sufficient space is
available, to unbundle a copper subloop or subloop for access to
multiunit premises wiring at the point where a telecommunications
carrier requests, the incumbent LEC shall have
[[Page 40]]
the burden of demonstrating to the state commission, in state
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.
(ii) Best practices. Once one state commission 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 to
the state commission, in state 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.
(c) Network interface device. Apart from its obligation to provide
the network interface device functionality as part of an unbundled loop
or subloop, an incumbent LEC also shall provide nondiscriminatory access
to the network interface device on an unbundled basis, in accordance
with section 251(c)(3) of the Act and this part. The network interface
device element is a stand-alone network element and is defined as any
means of interconnection of 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.
(d) Local circuit switching. An incumbent LEC shall provide a
requesting telecommunications carrier with nondiscriminatory access to
local circuit switching, including tandem switching, on an unbundled
basis, in accordance with section 251(c)(3) of the Act and this part and
as set forth in paragraph (d) of this section.
(1) Definition. Local circuit switching is defined as follows:
(i) Local circuit switching encompasses all line-side and trunk-side
facilities, plus the features, functions, and capabilities of the
switch. The features, functions, and capabilities of the switch shall
include the basic switching function of connecting lines to lines, lines
to trunks, trunks to lines, and trunks to trunks.
(ii) Local circuit switching includes all vertical features that the
switch is capable of providing, including custom calling, custom local
area signaling services features, and Centrex, as well as any
technically feasible customized routing functions.
(2) DS0 capacity (i.e., mass market) determinations. (i) An
incumbent LEC is not required to provide access to local circuit
switching on an unbundled basis to requesting telecommunications
carriers for the purpose of serving end-user customers using DS0
capacity loops.
(ii) Each requesting telecommunications carrier shall migrate its
embedded base of end-user customers off of the unbundled local circuit
switching element to an alternative arrangement within 12 months of the
effective date of the Triennial Review Remand Order.
(iii) Notwithstanding paragraph (d)(2)(i) of this section, for a 12-
month period from the effective date of the Triennial Review Remand
Order, an incumbent LEC shall provide access to local circuit switching
on an unbundled basis for a requesting carrier to serve its embedded
base of end-user customers. The price for unbundled local circuit
switching in combination with unbundled DS0 capacity loops and shared
transport obtained pursuant to this paragraph shall be the higher of the
rate at which the requesting carrier obtained that combination of
network elements on June 15, 2004 plus one dollar, or, the rate the
state public utility commission establishes, if any, between June 16,
2004, and the effective date of the Triennial Review Remand Order, for
that combination of network elements, plus one dollar. Requesting
carriers may not obtain new local switching as an unbundled network
element.
(3) DS1 capacity and above (i.e., enterprise market) determinations.
An incumbent LEC is not required to provide access to local circuit
switching on an unbundled basis to requesting telecommunications
carriers for the purpose of serving end-user customers
[[Page 41]]
using DS1 capacity and above loops except where the state commission
petitions this Commission for waiver of this finding in accordance with
the conditions set forth in paragraph (d)(3)(i) of this section and the
Commission grants such waiver.
(i) State commission inquiry. In its petition, a state commission
wishing to rebut the Commission's finding should petition the Commission
to show that requesting telecommunications carriers are impaired without
access to local circuit switching to serve end users using DS1 capacity
and above loops in a particular geographic market as defined in
accordance with paragraph (d)(2)(i) of this section if it finds that
operational or economic barriers exist in that market.
(A) In making this showing, the state commission shall consider the
following operational characteristics: incumbent LEC performance in
provisioning loops; difficulties associated with obtaining collocation
space due to lack of space or delays in provisioning by the incumbent
LEC; and the difficulties associated with obtaining cross-connects in
the incumbent LEC's wire center.
(B) In making this showing, the state commission shall consider the
following economic characteristics: the cost of entry into a particular
market, including those caused by both operational and economic barriers
to entry; requesting telecommunications carriers' potential revenues
from serving enterprise customers in that market, including all likely
revenues to be gained from entering that market; the prices requesting
telecommunications carriers are likely to be able to charge in that
market, based on a consideration of the prevailing retail rates the
incumbent LEC charges to the different classes of customers in the
different parts of the state.
(ii) Transitional four-line carve-out. Until the state commission
completes the review described in paragraph (b)(2)(iii)(B)(4) of this
section, an incumbent LEC shall comply with the four-line ``carve-out''
for unbundled switching established in Implementation of the Local
Competition Provisions of the Telecommunications Act of 1996, CC Docket
No. 96-98, Third Report and Order and Fourth Further Notice of Proposed
Rulemaking, 15 FCC Rcd 3822-31, paras. 276-98 (1999), reversed and
remanded in part sub. nom. United States Telecom Ass'n v. FCC, 290 F.3d
415 (D.C. Cir. 2002).
(A) DS1 capacity and above end-user transition. Each requesting
telecommunications carrier shall transfer its end-user customers served
using DS1 and above capacity loops and unbundled local circuit switching
to an alternative arrangement within 90 days from the end of the 90-day
state commission consideration period set forth in paragraph (d)(5)(i),
unless a longer period is necessary to comply with a ``change of law''
provision in an applicable interconnection agreement.
(4) Other elements to be unbundled. Elements relating to the local
circuit switching element shall be made available on an unbundled basis
to a requesting carrier to the extent that the requesting carrier is
entitled to unbundled local circuit switching as set forth in paragraph
(d)(2) of this section.
(i) An incumbent LEC shall provide a requesting telecommunications
carrier with nondiscriminatory access to signaling, call-related
databases, and shared transport facilities on an unbundled basis, in
accordance with section 251(c)(3) of the Act and this part, to the
extent that local circuit switching is required to be made available
pursuant to paragraph (d)(2)(iii) of this section. These elements are
defined as follows:
(A) Signaling networks. Signaling networks include, but are not
limited to, signaling links and signaling transfer points.
(B) Call-related databases. 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. Where a
requesting telecommunications carrier purchases unbundled local circuit
switching from an incumbent LEC, an incumbent LEC shall allow a
requesting telecommunications carrier to use the incumbent LEC's service
control point element in the same manner, and
[[Page 42]]
via the same signaling links, as the incumbent LEC itself.
(1) Call-related databases include, but are 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.
(2) Service management systems are defined as computer databases or
systems not part of the public switched network that interconnect to the
service control point and send to the service control point information
and call processing instructions needed for a network switch to process
and complete a telephone call, and provide a telecommunications carrier
with the capability of entering and storing data regarding the
processing and completing of a telephone call. Where a requesting
telecommunications carrier purchases unbundled local circuit switching
from an incumbent LEC, the incumbent LEC shall allow a requesting
telecommunications carrier to use the incumbent LEC's service management
systems by providing 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, including 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.
(3) An incumbent LEC shall not be required to unbundle the services
created in the advanced intelligent network platform and architecture
that qualify for proprietary treatment.
(C) Shared transport. Shared transport is defined as the
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.
(ii) An incumbent LEC shall provide a requesting telecommunications
carrier nondiscriminatory access to operator services and directory
assistance on an unbundled basis, in accordance with section 251(c)(3)
of the Act and this part, to the extent that local circuit switching is
required to be unbundled by a state commission, if the incumbent LEC
does not provide that requesting telecommunications carrier with
customized routing, or a compatible signaling protocol, necessary to use
either a competing provider's operator services and directory assistance
platform or the requesting telecommunications carrier's own platform.
Operator services are any automatic or live assistance to a customer 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.
(5) State commission proceedings. A state commission shall complete
the proceedings necessary to satisfy the requirements in paragraphs
(d)(2) and (d)(3) of this section in accordance with paragraphs
(d)(5)(i) and (d)(5)(ii) of this section.
(i) Timing. A state commission shall complete any initial review
applying the triggers and criteria in paragraph (d)(2) of this section
within nine months from the effective date of the Commission's Triennial
Review Order. A state commission wishing to rebut the Commission's
finding of non-impairment for DS1 and above enterprise switches must
file a petition with the Commission in accordance with paragraph (d)(3)
of this section within 90 days from that effective date.
(ii) Continuing review. A state commission shall complete any
subsequent review applying these triggers and criteria within six months
of the filing of a petition or other pleading to conduct such a review.
(e) Dedicated transport. An incumbent LEC shall provide a requesting
telecommunications carrier with nondiscriminatory access to dedicated
transport on an unbundled basis, in accordance with section 251(c)(3) of
the Act and this part, as set forth in paragraphs (e) through (e)(4) of
this section. A ``route'' is a transmission path between one of an
incumbent LEC's wire centers or switches and another of the incumbent
LEC's wire centers or
[[Page 43]]
switches. A route between two points (e.g., wire center or switch ``A''
and wire center or switch ``Z'') may pass through one or more
intermediate wire centers or switches (e.g., wire center or switch
``X''). Transmission paths between identical end points (e.g., wire
center or switch ``A'' and wire center or switch ``Z'') are the same
``route,'' irrespective of whether they pass through the same
intermediate wire centers or switches, if any.
(1) Definition. For purposes of this section, dedicated transport
includes incumbent LEC transmission facilities between wire centers or
switches owned by incumbent LECs, or between wire centers or switches
owned by incumbent LECs and switches owned by requesting
telecommunications carriers, including, but not limited to, DS1-, DS3-,
and OCn-capacity level services, as well as dark fiber, dedicated to a
particular customer or carrier.
(2) Availability. (i) Entrance facilities. An incumbent LEC is not
obligated to provide a requesting carrier with unbundled access to
dedicated transport that does not connect a pair of incumbent LEC wire
centers.
(ii) Dedicated DS1 transport. Dedicated DS1 transport shall be made
available to requesting carriers on an unbundled basis as set forth
below. Dedicated DS1 transport consists of incumbent LEC interoffice
transmission facilities that have a total digital signal speed of 1.544
megabytes per second and are dedicated to a particular customer or
carrier.
(A) General availability of DS1 transport. Incumbent LECs shall
unbundle DS1 transport between any pair of incumbent LEC wire centers
except where, through application of tier classifications described in
paragraph (e)(3) of this section, both wire centers defining the route
are Tier 1 wire centers. As such, an incumbent LEC must unbundle DS1
transport if a wire center at either end of a requested route is not a
Tier 1 wire center, or if neither is a Tier 1 wire center.
(B) Cap on unbundled DS1 transport circuits. A requesting
telecommunications carrier may obtain a maximum of ten unbundled DS1
dedicated transport circuits on each route where DS1 dedicated transport
is available on an unbundled basis.
(C) Transition period for DS1 transport circuits. For a 12-month
period beginning on the effective date of the Triennial Review Remand
Order, any DS1 dedicated transport UNE that a competitive LEC leases
from the incumbent LEC as of that date, but which the incumbent LEC is
not obligated to unbundle pursuant to paragraphs (e)(2)(ii)(A) or
(e)(2)(ii)(B) of this section, shall be available for lease from the
incumbent LEC at a rate equal to the higher of 115 percent of the rate
the requesting carrier paid for the dedicated transport element on June
15, 2004, or, 115 percent of the rate the state commission has
established or establishes, if any, between June 16, 2004, and the
effective date of the Triennial Review Remand Order, for that dedicated
transport element. Where incumbent LECs are not required to provide
unbundled DS1 transport pursuant to paragraphs (e)(2)(ii)(A) or
(e)(2)(ii)(B) of this section, requesting carriers may not obtain new
DS1 transport as unbundled network elements.
(iii) Dedicated DS3 transport. Dedicated DS3 transport shall be made
available to requesting carriers on an unbundled basis as set forth
below. Dedicated DS3 transport consists of incumbent LEC interoffice
transmission facilities that have a total digital signal speed of 44.736
megabytes per second and are dedicated to a particular customer or
carrier.
(A) General availability of DS3 transport. Incumbent LECs shall
unbundle DS3 transport between any pair of incumbent LEC wire centers
except where, through application of tier classifications described in
paragraph (e)(3) of this section, both wire centers defining the route
are either Tier 1 or Tier 2 wire centers. As such, an incumbent LEC must
unbundle DS3 transport if a wire center on either end of a requested
route is a Tier 3 wire center.
(B) Cap on unbundled DS3 transport circuits. A requesting
telecommunications carrier may obtain a maximum of 12 unbundled DS3
dedicated transport circuits on each route where DS3 dedicated transport
is available on an unbundled basis.
[[Page 44]]
(C) Transition period for DS3 transport circuits. For a 12-month
period beginning on the effective date of the Triennial Review Remand
Order, any DS3 dedicated transport UNE that a competitive LEC leases
from the incumbent LEC as of that date, but which the incumbent LEC is
not obligated to unbundle pursuant to paragraphs (e)(2)(iii)(A) or
(e)(2)(iii)(B) of this section, shall be available for lease from the
incumbent LEC at a rate equal to the higher of 115 percent of the rate
the requesting carrier paid for the dedicated transport element on June
15, 2004, or, 115 percent of the rate the state commission has
established or establishes, if any, between June 16, 2004, and the
effective date of the Triennial Review Remand Order, for that dedicated
transport element. Where incumbent LECs are not required to provide
unbundled DS3 transport pursuant to paragraphs (e)(2)(iii)(A) or
(e)(2)(iii)(B) of this section, requesting carriers may not obtain new
DS3 transport as unbundled network elements.
(iv) Dark fiber transport. Dedicated dark fiber transport shall be
made available to requesting carriers on an unbundled basis as set forth
below. Dark fiber transport consists of unactivated optical interoffice
transmission facilities.
(A) General availability of dark fiber transport. Incumbent LECs
shall unbundle dark fiber transport between any pair of incumbent LEC
wire centers except where, though application of tier classifications
described in paragraph (e)(3) of this section, both wire centers
defining the route are either Tier 1 or Tier 2 wire centers. As such, an
incumbent LEC must unbundle dark fiber transport if a wire center on
either end of a requested route is a Tier 3 wire center.
(B) Transition period for dark fiber transport circuits. For an 18-
month period beginning on the effective date of the Triennial Review
Remand Order, any dark fiber dedicated transport UNE that a competitive
LEC leases from the incumbent LEC as of that date, but which the
incumbent LEC is not obligated to unbundle pursuant to paragraphs
(e)(2)(iv)(A) or (e)(2)(iv)(B) of this section, shall be available for
lease from the incumbent LEC at a rate equal to the higher of 115
percent of the rate the requesting carrier paid for the dedicated
transport element on June 15, 2004, or, 115 percent of the rate the
state commission has established or establishes, if any, between June
16, 2004, and the effective date of the Triennial Review Remand Order,
for that dedicated transport element. Where incumbent LECs are not
required to provide unbundled dark fiber transport pursuant to
paragraphs (e)(2)(iv)(A) or (e)(2)(iv)(B) of this section, requesting
carriers may not obtain new dark fiber transport as unbundled network
elements.
(3) Wire center tier structure. For purposes of this section,
incumbent LEC wire centers shall be classified into three tiers, defined
as follows:
(i) Tier 1 wire centers are those incumbent LEC wire centers that
contain at least four fiber-based collocators, at least 38,000 business
lines, or both. Tier 1 wire centers also are those incumbent LEC tandem
switching locations that have no line-side switching facilities, but
nevertheless serve as a point of traffic aggregation accessible by
competitive LECs. Once a wire center is determined to be a Tier 1 wire
center, that wire center is not subject to later reclassification as a
Tier 2 or Tier 3 wire center.
(ii) Tier 2 wire centers are those incumbent LEC wire centers that
are not Tier 1 wire centers, but contain at least 3 fiber-based
collocators, at least 24,000 business lines, or both. Once a wire center
is determined to be a Tier 2 wire center, that wire center is not
subject to later reclassification as a Tier 3 wire center.
(iii) Tier 3 wire centers are those incumbent LEC wire centers that
do not meet the criteria for Tier 1 or Tier 2 wire centers.
(4) Routine network modifications. (i) An incumbent LEC shall make
all routine network modifications to unbundled dedicated transport
facilities used by requesting telecommunications carriers where the
requested dedicated transport facilities have already been constructed.
An incumbent LEC shall perform all routine network modifications to
unbundled dedicated transport facilities in a nondiscriminatory fashion,
without regard to
[[Page 45]]
whether the facility being accessed was constructed on behalf, or in
accordance with the specifications, of any carrier.
(ii) A routine network modification is an activity that the
incumbent LEC regularly undertakes for its own customers. Routine
network modifications include, but are not limited to, rearranging or
splicing of cable; adding an equipment case; adding a doubler or
repeater; installing a repeater shelf; and deploying a new multiplexer
or reconfiguring an existing multiplexer. They also include activities
needed to enable a requesting telecommunications carrier to light a dark
fiber transport facility. Routine network modifications may entail
activities such as accessing manholes, deploying bucket trucks to reach
aerial cable, and installing equipment casings. Routine network
modifications do not include the installation of new aerial or buried
cable for a requesting telecommunications carrier.
(f) 911 and E911 databases. An incumbent LEC shall provide a
requesting telecommunications carrier with nondiscriminatory access to
911 and E911 databases on an unbundled basis, in accordance with section
251(c)(3) of the Act and this part.
(g) Operations support systems. An incumbent LEC shall provide a
requesting telecommunications carrier with nondiscriminatory access to
operations support systems on an unbundled basis, in accordance with
section 251(c)(3) of the Act and this part. 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, shall provide the
requesting telecommunications carrier with nondiscriminatory access to
the same detailed information about the loop that is available to the
incumbent LEC.
[68 FR 52295, Sept. 4, 2003, as amended at 68 FR 64000, Nov. 12, 2003;
69 FR 54591, Sept. 9, 2004; 69 FR 77953, Dec. 29, 2004; 70 FR 8953, Feb.
24, 2005]
Sec. 51.320 Assumption of responsibility by the Commission.
If a state commission fails to exercise its authority under Sec.
51.319, any party seeking that the Commission step into the role of the
state commission shall file with the Commission and serve on the state
commission a petition that explains with specificity the bases for the
petition and information that supports the claim that the state
commission has failed to act. Subsequent to the Commission's issuing a
public notice and soliciting comments on the petition from interested
parties, the Commission will rule on the petition within 90 days of the
date of the public notice. If it agrees that the state commission has
failed to act, the Commission will assume responsibility for the
proceeding, and within nine months from the date it assumed
responsibility for the proceeding, make any findings in accordance with
the Commission's rules.
[68 FR 52305, Sept. 2, 2003]
Sec. 51.321 Methods of obtaining interconnection and access to
unbundled elements under section 251 of the Act.
(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.
(b) Technically feasible methods of obtaining interconnection or
access to unbundled network elements include, but are not limited to:
(1) Physical collocation and virtual collocation at the premises of
an incumbent LEC; and
(2) Meet point interconnection arrangements.
(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
[[Page 46]]
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.
(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.
(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. 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.
(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.
(g) An incumbent LEC that is classified as a Class A company under
Sec. 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 Sec. Sec. 64.1401,
64.1402, 69.121 of this chapter, and the Commission's other
requirements.
(h) Upon request, an incumbent LEC must submit to the requesting
carrier within ten days of the submission of the request a report
describing in detail the space that is available for collocation in a
particular incumbent 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 publicly 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.
(i) An incumbent LEC must, upon request, remove obsolete unused
equipment from their premises to increase the amount of space available
for collocation.
[61 FR 45619, Aug. 28, 1996, as amended at 64 FR 23241, Apr. 30, 1999;
65 FR 54438, Sept. 8, 2000; 66 FR 43521, Aug. 20, 2001]
Sec. 51.323 Standards for physical collocation and virtual
collocation.
(a) An incumbent LEC shall provide physical collocation and virtual
collocation to requesting telecommunications carriers.
(b) An incumbent LEC shall permit the collocation and use of any
equipment necessary for interconnection or access to unbundled network
elements.
[[Page 47]]
(1) Equipment is necessary for interconnection if an inability to
deploy that equipment would, as a practical, economic, or operational
matter, preclude the requesting carrier from obtaining interconnection
with the incumbent LEC at a level equal in quality to that which the
incumbent obtains within its own network or the incumbent provides to
any affiliate, subsidiary, or other party.
(2) Equipment is necessary for access to an unbundled network
element if an inability to deploy that equipment would, as a practical,
economic, or operational matter, preclude the requesting carrier from
obtaining nondiscriminatory access to that unbundled network element,
including any of its features, functions, or capabilities.
(3) Multi-functional equipment shall be deemed necessary for
interconnection or access to an unbundled network element if and only if
the primary purpose and function of the equipment, as the requesting
carrier seeks to deploy it, meets either or both of the standards set
forth in paragraphs (b)(1) and (b)(2) of this section. For a piece of
equipment to be utilized primarily to obtain equal in quality
interconnection or nondiscriminatory access to one or more unbundled
network elements, there also must be a logical nexus between the
additional functions the equipment would perform and the
telecommunication services the requesting carrier seeks to provide to
its customers by means of the interconnection or unbundled network
element. The collocation of those functions of the equipment that, as
stand-alone functions, do not meet either of the standards set forth in
paragraphs (b)(1) and (b)(2) of this section must not cause the
equipment to significantly increase the burden on the incumbent's
property.
(c) Whenever an incumbent LEC objects to collocation of equipment by
a requesting telecommunications carrier for purposes within the scope of
section 251(c)(6) of the Act, the incumbent LEC shall prove to the state
commission that the equipment is not necessary for interconnection or
access to unbundled network elements under the standards set forth in
paragraph (b) of this section. 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.
(d) When an incumbent LEC provides physical collocation, virtual
collocation, or both, the incumbent LEC shall:
(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;
(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;
(3) Permit interconnection of copper or coaxial cable if such
interconnection
[[Page 48]]
is first approved by the state commission; and
(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.
(e) When providing virtual collocation, an incumbent LEC shall, at a
minimum, install, maintain, and repair collocated equipment meeting the
standards set forth 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.
(f) An incumbent LEC shall provide space for the collocation of
equipment meeting the standards set forth in paragraph (b) of this
section in accordance with the following requirements:
(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;
(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;
(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;
(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;
(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
(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.
(7) An incumbent LEC must assign collocation space to requesting
carriers in a just, reasonable, and nondiscriminatory manner. An
incumbent LEC must allow each carrier requesting physical collocation to
submit space preferences prior to assigning physical collocation space
to that carrier. At a minimum, an incumbent LEC's space assignment
policies and practices must meet the following principles:
(A) An incumbent LEC's space assignment policies and practices must
not materially increase a requesting carrier's collocation costs.
(B) An incumbent LEC's space assignment policies and practices must
not materially delay a requesting carrier occupation and use of the
incumbent LEC's premises.
(C) An incumbent LEC must not assign physical collocation space that
will impair the quality of service or impose other limitations on the
service a requesting carrier wishes to offer.
(D) An incumbent LEC's space assignment policies and practices must
not reduce unreasonably the total space available for physical
collocation or preclude unreasonably physical collocation within the
incumbent's premises.
(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.
[[Page 49]]
(h) As described in paragraphs (1) and (2) of this section, 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.
(1) An incumbent LEC shall provide, at the request of a collocating
telecommunications carrier, a connection between the equipment in the
collocated spaces of two or more telecommunications carriers, except to
the extent the incumbent LEC permits the collocating parties to provide
the requested connection for themselves or a connection is not required
under paragraph (h)(2) of this section. Where technically feasible, the
incumbent LEC shall provide the connection using copper, dark fiber, lit
fiber, or other transmission medium, as requested by the collocating
telecommunications carrier.
(2) An incumbent LEC is not required to provide a connection between
the equipment in the collocated spaces of two or more telecommunications
carriers if the connection is requested pursuant to section 201 of the
Act, unless the requesting carrier submits to the incumbent LEC a
certification that more than 10 percent of the amount of traffic to be
transmitted through the connection will be interstate. The incumbent LEC
cannot refuse to accept the certification, but instead must provision
the service promptly. Any incumbent LEC may file a section 208 complaint
with the Commission challenging the certification if it believes that
the certification is deficient. No such certification is required for a
request for such connection under section 251 of the Act.
(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 the incumbent LEC
maintains at its own premises for its 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. An
incumbent LEC may require a collocating carrier to pay only for the
least expensive, effective security option that is viable for the
physical collocation space assigned. Reasonable security measures that
the incumbent LEC may adopt include:
(1) Installing security cameras or other monitoring systems; or
(2) Requiring competitive LEC personnel to use badges with
computerized tracking systems; or
(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.
(4) Restricting physical collocation to space separated from space
housing the incumbent LEC's equipment, provided that each of the
following conditions is met:
(i) Either legitimate security concerns, or operational constraints
unrelated to the incumbent's or any of its affiliates' or subsidiaries
competitive concerns, warrant such separation;
(ii) Any physical collocation space assigned to an affiliate or
subsidiary of the incumbent LEC is separated from space housing the
incumbent LEC's equipment;
(iii) The separated space will be available in the same time frame
as, or a shorter time frame than, non-separated space;
[[Page 50]]
(iv) The cost of the separated space to the requesting carrier will
not be materially higher than the cost of non-separated space; and
(v) The separated space is comparable, from a technical and
engineering standpoint, to non-separated space.
(5) Requiring the employees and contractors of collocating carriers
to use a central or separate entrance to the incumbent's building,
provided, however, that where an incumbent LEC requires that the
employees or contractors of collocating carriers access collocated
equipment only through a separate entrance, employees and contractors of
the incumbent LEC's affiliates and subsidiaries must be subject to the
same restriction.
(6) Constructing or requiring the construction of a separate
entrance to access physical collocation space, provided that each of the
following conditions is met:
(i) Construction of a separate entrance is technically feasible;
(ii) Either legitimate security concerns, or operational constraints
unrelated to the incumbent's or any of its affiliates' or subsidiaries
competitive concerns, warrant such separation;
(iii) Construction of a separate entrance will not artificially
delay collocation provisioning; and
(iv) Construction of a separate entrance will not materially
increase the requesting carrier's costs.
(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.
(k) An incumbent LEC's physical collocation offering must include
the following:
(1) Shared collocation cages. 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.
(2) Cageless collocation. Incumbent LECs must allow competitors to
collocate without requiring the construction of a cage or similar
structure. 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.
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.
(3) Adjacent space collocation. 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
[[Page 51]]
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.
(l) An incumbent LEC must offer to provide and provide all forms of
physical collocation (i.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.
(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.
(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.
(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.
(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.
[61 FR 45619, Aug. 28, 1996, as amended at 64 FR 23242, Apr. 30, 1999;
65 FR 54439, Sept. 8, 2000; 66 FR 43521, Aug. 20, 2001]
Sec. 51.325 Notice of network changes: Public notice requirement.
(a) An incumbent local exchange carrier (``LEC'') must provide
public notice regarding any network change that:
(1) Will affect a competing service provider's performance or
ability to provide service;
(2) Will affect the incumbent LEC's interoperability with other
service providers; or
(3) Will affect the manner in which customer premises equipment is
attached to the interstate network.
(4) Will result in the retirement of copper loops or copper
subloops, and the replacement of such loops with fiber-to-the-home loops
or fiber-to-the-curb loops, as those terms are defined in Sec.
51.319(a)(3).
(b) For purposes of this section, interoperability 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.
(c) Until public notice has been given in accordance with Sec. Sec.
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
[[Page 52]]
changes that are subject to this section.
(d) For the purposes of Sec. Sec. 51.325 through 51.335, the term
services means telecommunications services or information services.
[61 FR 47351, Sept. 6, 1996, as amended at 64 FR 14148, Mar. 24, 1999;
68 FR 52305, Sept. 2, 2003; 69 FR 77954, Dec. 29, 2004]
Sec. 51.327 Notice of network changes: Content of notice.
(a) Public notice of planned network changes must, at a minimum,
include:
(1) The carrier's name and address;
(2) The name and telephone number of a contact person who can supply
additional information regarding the planned changes;
(3) The implementation date of the planned changes;
(4) The location(s) at which the changes will occur;
(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
(6) A description of the reasonably foreseeable impact of the
planned changes.
(b) The incumbent LEC also shall follow, as necessary, procedures
relating to confidential or proprietary information contained in Sec.
51.335.
[61 FR 47351, Sept. 6, 1996]
Sec. 51.329 Notice of network changes: Methods for providing notice.
(a) In providing the required notice to the public of network
changes, an incumbent LEC may use one of the following methods:
(1) Filing a public notice with the Commission; or
(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:
(i) A statement that identifies the proposed changes;
(ii) A statement that public notice has been given in compliance
with Sec. Sec. 51.325 through 51.335; and
(iii) A statement identifying the location of the change information
and describing how this information can be obtained.
(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.
(c) Specific filing requirements. Commission filings under this
section must be made as follows:
(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).''
(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.
[61 FR 47351, Sept. 6, 1996, as amended at 67 FR 13225, Mar. 21, 2002;
71 FR 65750, Nov. 9, 2006]
Sec. 51.331 Notice of network changes: Timing of notice.
(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:
(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.
(2) If the changes can be implemented within six months of the make/
buy
[[Page 53]]
point, public notice may be given pursuant to the short term notice
procedures provided in Sec. 51.333.
(b) For purposes of this section, the make/buy point 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.
(1) For purposes of this section, a product 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.
(2) For purposes of this section a definite decision is reached when
an incumbent LEC determines that the change is warranted, establishes a
timetable for anticipated implementation, and takes any action toward
implementation of the change within its network.
(c) Competing service providers may object to incumbent LEC notice
of retirement of copper loops or copper subloops and replacement with
fiber-to-the-home loops or fiber-to-the-curb loops in the manner set
forth in Sec. 51.333(c).
[61 FR 47352, Sept. 6, 1996, as amended at 68 FR 52305, Sept. 2, 2003;
69 FR 77954, Dec. 29, 2004]
Sec. 51.333 Notice of network changes: Short term notice, objections
thereto and objections to retirement of copper loops or copper subloops.
(a) Certificate of service. 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 Sec.
51.327(a) or Sec. 51.329(a)(2), as applicable. The certificate of
service shall include:
(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
(2) The name and address of each such telephone exchange service
provider upon which the notice was served.
(b) Implementation date. The Commission will release a public notice
of filings of such short term notices or notices of replacement of
copper loops or copper subloops with fiber-to-the-home loops or fiber-
to-the-curb loops. The effective date of the network changes referenced
in those filings shall be subject to the following requirements:
(1) Short term notice. 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.
(2) Replacement of copper loops or copper subloops with fiber-to-
the-home loops or fiber-to-the-curb loops. Notices of replacement of
copper loops or copper subloops with fiber-to-the-home loops or fiber-
to-the-curb loops shall be deemed approved on the 90th day after the
release of the Commission's public notice of the filing, unless an
objection is filed pursuant to paragraph (c) of this section. Incumbent
LEC notice of intent to retire any copper loops or copper subloops and
replace such loops or subloops with fiber-to-the-home loops or fiber-to-
the-curb loops shall be subject to the short term notice provisions of
this section, but under no circumstances may an incumbent LEC provide
less than 90 days notice of such a change.
(c) Objection procedures for short term notice and notices of
replacement of copper loops or copper subloops with fiber-to-the-home
loops or fiber-to-the-curb loops. An objection to an incumbent LEC's
short term notice or to its notice that it intends to retire copper
loops or copper subloops and replace such loops or subloops with fiber-
to-the-home loops or fiber-to-the-curb loops may be filed by an
information service provider or telecommunications service provider
[[Page 54]]
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 filed under
this section must:
(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;
(2) List steps the objector is taking to accommodate the incumbent
LEC's changes on an expedited basis;
(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;
(4) Provide any other information relevant to the objection; and
(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:
``I, (name and title), 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 (objector)
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.''
(d) Response to objections. 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:
(1) Provide information responsive to the allegations and concerns
identified by the objectors;
(2) State whether the implementation date(s) proposed by the
objector(s) are acceptable;
(3) Indicate any specific technical assistance that the incumbent
LEC is willing to give to the objectors; and
(4) Provide any other relevant information.
(e) Resolution. If an objection is filed pursuant to paragraph (c)
of this section, then the Chief, Wireline Competition Bureau, will issue
an order determining a reasonable public notice period, provided
however, 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
Sec. 51.329(b).
(f) Resolution of objections to replacement of copper loops or
copper subloops with fiber-to-the-home loops or fiber-to-the-curb loops.
An objection to a notice that an incumbent LEC intends to retire any
copper loops or copper subloops and replace such loops or subloops with
fiber-to-the-home loops or fiber-to-the-curb loops shall be deemed
denied 90 days after the date on which the Commission releases public
notice of the incumbent LEC filing, unless the Commission rules
otherwise within that time. Until the Commission has either ruled on an
objection or the 90-day period for the Commission's consideration has
expired, an incumbent LEC may not retire those copper loops or copper
subloops at issue for replacement with fiber-to-the-home loops or fiber-
to-the-curb loops.
[61 FR 47352, Sept. 6, 1996, as amended at 67 FR 13226, Mar. 21, 2002;
68 FR 52305, Sept. 2, 2003; 69 FR 77954; Dec. 29, 2004]
[[Page 55]]
Sec. 51.335 Notice of network changes: Confidential or proprietary
information.
(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
Sec. 51.327(a), a statement that the incumbent LEC will make further
information available to those signing a nondisclosure agreement.
(b) Tolling the public notice period. 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:
(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
(2) On the date the nondisclosure agreement is finalized, to specify
a new implementation date.
[61 FR 47352, Sept. 6, 1996]
Subpart E_Exemptions, Suspensions, and Modifications of Requirements of
Section 251 of the Act
Sec. 51.401 State authority.
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.
Sec. 51.403 Carriers eligible for suspension or modification under
section 251(f)(2) of the Act.
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.
Sec. 51.405 Burden of proof.
(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.
(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.
(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 would be likely to cause undue economic burden beyond
the economic burden that is typically associated with efficient
competitive entry.
(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.
Subpart F_Pricing of Elements
Sec. 51.501 Scope.
(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.
(b) As used in this subpart, the term ``element'' includes network
elements, interconnection, and methods of obtaining interconnection and
access to unbundled elements.
[[Page 56]]
Sec. 51.503 General pricing standard.
(a) An incumbent LEC shall offer elements to requesting
telecommunications carriers at rates, terms, and conditions that are
just, reasonable, and nondiscriminatory.
(b) An incumbent LEC's rates for each element it offers shall comply
with the rate structure rules set forth in Sec. Sec. 51.507 and 51.509,
and shall be established, at the election of the state commission--
(1) Pursuant to the forward-looking economic cost-based pricing
methodology set forth in Sec. Sec. 51.505 and 51.511; or
(2) Consistent with the proxy ceilings and ranges set forth in Sec.
51.513.
(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.
Sec. 51.505 Forward-looking economic cost.
(a) In general. The forward-looking economic cost of an element
equals the sum of:
(1) The total element long-run incremental cost of the element, as
described in paragraph (b); and
(2) A reasonable allocation of forward-looking common costs, as
described in paragraph (c).
(b) Total element long-run incremental cost. 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.
(1) Efficient network configuration. 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.
(2) Forward-looking cost of capital. The forward-looking cost of
capital shall be used in calculating the total element long-run
incremental cost of an element.
(3) Depreciation rates. The depreciation rates used in calculating
forward-looking economic costs of elements shall be economic
depreciation rates.
(c) Reasonable allocation of forward-looking common costs--(1)
Forward-looking common costs. 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.
(2) Reasonable allocation. (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.
(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.
(d) Factors that may not be considered. The following factors shall
not be considered in a calculation of the forward-looking economic cost
of an element:
(1) Embedded costs. 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;
(2) Retail costs. 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 Sec. 51.609;
(3) Opportunity costs. Opportunity costs include the revenues that
the incumbent LEC would have received for the sale of telecommunications
services, in the absence of competition
[[Page 57]]
from telecommunications carriers that purchase elements; and
(4) Revenues to subsidize other services. 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.
(e) Cost study requirements. 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 Sec. 51.511.
(1) A state commission may set a rate outside the proxy ranges or
above the proxy ceilings described in Sec. 51.513 only if that
commission has given full and fair effect to the economic cost based
pricing methodology described in this section and Sec. 51.511 in a
state proceeding that meets the requirements of paragraph (e)(2) of this
section.
(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.
Sec. 51.507 General rate structure standard.
(a) Element rates shall be structured consistently with the manner
in which the costs of providing the elements are incurred.
(b) The costs of dedicated facilities shall be recovered through
flat-rated charges.
(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.
(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.
(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.
(f) State commissions shall establish different rates for elements
in at least three defined geographic areas within the state to reflect
geographic cost differences.
(1) To establish geographically-deaveraged rates, state commissions
may use existing density-related zone pricing plans described in Sec.
69.123 of this chapter, or other such cost-related zone plans
established pursuant to state law.
(2) In states not using such existing plans, state commissions must
create a minimum of three cost-related rate zones.
[61 FR 45619, Aug. 29, 1996, as amended at 64 FR 32207, June 16, 1999;
64 FR 68637, Dec. 8, 1999]
Sec. 51.509 Rate structure standards for specific elements.
In addition to the general rules set forth in Sec. 51.507, rates
for specific elements shall comply with the following rate structure
rules.
(a) Local loop and subloop. Loop and subloop costs shall be
recovered through flat-rated charges.
(b) Local switching. 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.
(c) Dedicated transmission links. Dedicated transmission link costs
shall be recovered through flat-rated charges.
(d) Shared transmission facilities between tandem switches and end
offices. The costs of shared transmission facilities between tandem
switches and end offices may be recovered through
[[Page 58]]
usage-sensitive charges, or in another manner consistent with the manner
that the incumbent LEC incurs those costs.
(e) Tandem switching. 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.
(f) Signaling and call-related database services. 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.
(g) Collocation. Collocation costs shall be recovered consistent
with the rate structure policies established in the Expanded
Interconnection proceeding, CC Docket No. 91-141.
(h) Network interface device. An incumbent LEC must establish a
price for the network interface device when that unbundled network
element is purchased on a stand-alone basis pursuant to Sec. 51.319(c).
[61 FR 45619, Aug. 29, 1996, as amended at 68 FR 52306, Sept. 2, 2003]
Sec. 51.511 Forward-looking economic cost per unit.
(a) The forward-looking economic cost per unit of an element equals
the forward-looking economic cost of the element, as defined in Sec.
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.
(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.g., local loops or local switch ports) that the incumbent
LEC uses or provides.
(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.g., minutes of use or call-related database
queries) of the element.
Sec. 51.513 Proxies for forward-looking economic cost.
(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 Sec. Sec. 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:
(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 Sec. Sec. 51.505 and 51.511, and has concluded
that such study is a reasonable basis for establishing element rates;
and
(2) The state commission sets forth in writing a reasonable basis
for its selection of a particular rate for the element.
(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 rates that apply in separate geographic areas
in a state.
(c) Proxies for specific elements--(1) Local loops. 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.)
Table
------------------------------------------------------------------------
Proxy
State ceiling
------------------------------------------------------------------------
Alabama....................................................... $17.25
Arizona....................................................... 12.85
Arkansas...................................................... 21.18
California.................................................... 11.10
Colorado...................................................... 14.97
[[Page 59]]
Connecticut................................................... 13.23
Delaware...................................................... 13.24
District of Columbia.......................................... 10.81
Florida....................................................... 13.68
Georgia....................................................... 16.09
Hawaii........................................................ 15.27
Idaho......................................................... 20.16
Illinois...................................................... 13.12
Indiana....................................................... 13.29
Iowa.......................................................... 15.94
Kansas........................................................ 19.85
Kentucky...................................................... 16.70
Louisiana..................................................... 16.98
Maine......................................................... 18.69
Maryland...................................................... 13.36
Massachusetts................................................. 9.83
Michigan...................................................... 15.27
Minnesota..................................................... 14.81
Mississippi................................................... 21.97
Missouri...................................................... 18.32
Montana....................................................... 25.18
Nebraska...................................................... 18.05
Nevada........................................................ 18.95
New Hampshire................................................. 16.00
New Jersey.................................................... 12.47
New Mexico.................................................... 18.66
New York...................................................... 11.75
North Carolina................................................ 16.71
North Dakota.................................................. 25.36
Ohio.......................................................... 15.73
Oklahoma...................................................... 17.63
Oregon........................................................ 15.44
Pennsylvania.................................................. 12.30
Puerto Rico................................................... 12.47
Rhode Island.................................................. 11.48
South Carolina................................................ 17.07
South Dakota.................................................. 25.33
Tennessee..................................................... 17.41
Texas......................................................... 15.49
Utah.......................................................... 15.12
Vermont....................................................... 20.13
Virginia...................................................... 14.13
Washington.................................................... 13.37
West Virginia................................................. 19.25
Wisconsin..................................................... 15.94
Wyoming....................................................... 25.11
------------------------------------------------------------------------
(2) Local switching. (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.
(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.
(3) Dedicated transmission links. 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 Sec. Sec. 69.110
and 69.112 of this chapter.
(4) Shared transmission facilities between tandem switches and end
offices. 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 Sec. 69.112 of this chapter.
(5) Tandem switching. The proxy-based rate for tandem switching
shall be no greater than 0.15 cents ($0.0015) per minute of use.
(6) Collocation. To the extent that the incumbent LEC offers a
comparable form of collocation in its interstate expanded
interconnection tariffs, as described in Sec. Sec. 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
[[Page 60]]
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 Sec. 51.505.
(7) Signaling, call-related database, and other elements. 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 Sec. 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 Sec. 61.49(h) of this chapter.
[61 FR 45619, Aug. 29, 1996, as amended at 61 FR 52709, Oct. 8, 1996]
Sec. 51.515 Application of access charges.
(a)-(b) [Reserved]
(c) Notwithstanding Sec. Sec. 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 Sec. 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:
(1) June 30, 1997;
(2) The effective date of a state commission decision that an
incumbent LEC may not assess such charges; or
(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.
(d) Interstate access charges described in part 69 shall not be
assessed by incumbent LECs on each element purchased by requesting
carriers providing both telephone exchange and exchange access services
to such requesting carriers' end users.
[61 FR 45619, Aug. 29, 1996, as amended at 62 FR 45587, Aug. 28, 1997;
71 FR 65750, Nov. 9, 2006]
Subpart G_Resale
Sec. 51.601 Scope of resale rules.
The provisions of this subpart govern the terms and conditions under
which LECs offer telecommunications services to requesting
telecommunications carriers for resale.
Sec. 51.603 Resale obligation of all local exchange carriers.
(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.
(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.
Sec. 51.605 Additional obligations of incumbent local exchange
carriers.
(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--
(1) Consistent with the avoided cost methodology described in
Sec. Sec. 51.607 and 51.609; or
(2) Interim wholesale rates, pursuant to Sec. 51.611.
(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.
(c) For purposes of this subpart, advanced telecommunications
services
[[Page 61]]
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.
(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.
(e) Except as provided in Sec. 51.613, an incumbent LEC shall not
impose restrictions on the resale by a requesting carrier of
telecommunications services offered by the incumbent LEC.
[61 FR 45619, Aug. 29, 1996, as amended at 65 FR 6915, Feb. 11, 2000]
Sec. 51.607 Wholesale pricing standard.
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.
[65 FR 6915, Feb. 11, 2000]
Sec. 51.609 Determination of avoided retail costs.
(a) Except as provided in Sec. 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.
(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.
(c) For incumbent LECs that are designated as Class A companies
under Sec. 32.11 of this chapter, except as provided in paragraph (d)
of this section, avoided retail costs shall:
(1) Include as direct costs, the costs recorded in USOA accounts
6611 (product management and sales), 6613 (product advertising), 6621
(call completion services), 6622, (number services), and 6623 (customer
services) (Sec. Sec. 32.6611, 32.6613, 32.6621, 32.6622, and 32.6623 of
this chapter);
(2) Include, as indirect costs, a portion of the costs recorded in
USOA accounts 6121-6124 (general support expenses), 6720 (corporate
operations expenses), and uncollectible telecommunications revenue
included in 5300 (uncollectible revenue) (Secs. 32.6121 through 32.6124,
32.6720 and 32.5300 of this chapter); and
(3) Not include plant-specific expenses and plant non-specific
expenses, other than general support expenses (Sec. Sec. 32.6112-6114,
32.6211-6565 of this chapter).
(d) Costs included in accounts 6611, 6613 and 6621-6623 described in
paragraph (c) of this section (Sec. Sec. 32.6611, 32.6613, and 32.6621-
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 6112-6114 and 6211-6565 described in paragraph (c)
of this section (Sec. Sec. 32.6112-32.6114, 32.6211-32.6565 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.
(e) For incumbent LECs that are designated as Class B companies
under Sec. 32.11 of this chapter and that record information in summary
accounts instead of specific USOA accounts, the entire relevant summary
accounts may
[[Page 62]]
be used in lieu of the specific USOA accounts listed in paragraphs (c)
and (d) of this section.
[61 FR 45619, Aug. 29, 1996, as amended at 67 FR 5700, Feb. 6, 2002; 69
FR 53652, Sept. 2, 2004]
Sec. 51.611 Interim wholesale rates.
(a) If a state commission cannot, based on the information available
to it, establish a wholesale rate using the methodology prescribed in
Sec. 51.609, then the state commission may elect to establish an
interim wholesale rate as described in paragraph (b) of this section.
(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.
(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 Sec. 51.609.
Sec. 51.613 Restrictions on resale.
(a) Notwithstanding Sec. 51.605(b), the following types of
restrictions on resale may be imposed:
(1) Cross-class selling. 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.
(2) Short term promotions. An incumbent LEC shall apply the
wholesale discount to the ordinary rate for a retail service rather than
a special promotional rate only if:
(i) Such promotions involve rates that will be in effect for no more
than 90 days; and
(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.
(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 the state commission that the restriction is reasonable and
nondiscriminatory.
(c) Branding. 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.
(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.
(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.
Sec. 51.615 Withdrawal of services.
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.
Sec. 51.617 Assessment of end user common line charge on resellers.
(a) Notwithstanding the provision in Sec. 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
[[Page 63]]
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.
(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.
Subpart H_Reciprocal Compensation for Transport and Termination of
Telecommunications Traffic
Editorial Note: Nomenclature changes to subpart H appear at 66 FR
26806, May 15, 2001.
Sec. 51.701 Scope of transport and termination pricing rules.
(a) The provisions of this subpart apply to reciprocal compensation
for transport and termination of telecommunications traffic between LECs
and other telecommunications carriers.
(b) Telecommunications traffic. For purposes of this subpart,
telecommunications traffic means:
(1) Telecommunications traffic exchanged between a LEC and a
telecommunications carrier other than a CMRS provider, except for
telecommunications traffic that is interstate or intrastate exchange
access, information access, or exchange services for such access (see
FCC 01-131, paragraphs 34, 36, 39, 42-43); or
(2) Telecommunications traffic exchanged 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 Sec. 24.202(a) of
this chapter.
(c) Transport. For purposes of this subpart, transport is the
transmission and any necessary tandem switching of 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.
(d) Termination. For purposes of this subpart, termination is the
switching of telecommunications traffic at the terminating carrier's end
office switch, or equivalent facility, and delivery of such traffic to
the called party's premises.
(e) Reciprocal compensation. 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 telecommunications traffic that originates on the network facilities
of the other carrier.
[61 FR 45619, Aug. 29, 1996, as amended at 66 FR 26806, May 15, 2001]
Sec. 51.703 Reciprocal compensation obligation of LECs.
(a) Each LEC shall establish reciprocal compensation arrangements
for transport and termination of telecommunications traffic with any
requesting telecommunications carrier.
(b) A LEC may not assess charges on any other telecommunications
carrier for telecommunications traffic that originates on the LEC's
network.
Sec. 51.705 Incumbent LECs' rates for transport and termination.
(a) An incumbent LEC's rates for transport and termination of
telecommunications traffic shall be established, at the election of the
state commission, on the basis of:
(1) The forward-looking economic costs of such offerings, using a
cost study pursuant to Sec. Sec. 51.505 and 51.511;
(2) Default proxies, as provided in Sec. 51.707; or
(3) A bill-and-keep arrangement, as provided in Sec. 51.713.
(b) In cases where both carriers in a reciprocal compensation
arrangement are incumbent LECs, state commissions shall establish the
rates of the
[[Page 64]]
smaller carrier on the basis of the larger carrier's forward-looking
costs, pursuant to Sec. 51.711.
Sec. 51.707 Default proxies for incumbent LECs' transport and
termination rates.
(a) A state commission may determine that the cost information
available to it with respect to transport and termination of
telecommunications traffic does not support the adoption of a rate or
rates for an incumbent LEC that are consistent with the requirements of
Sec. Sec. 51.505 and 51.511. In that event, the state commission may
establish rates for transport and termination of telecommunications
traffic, or for specific components included therein, that are
consistent with the proxies specified in this section, provided that:
(1) Any rate established through use of such proxies is superseded
once that state commission establishes rates for transport and
termination pursuant to Sec. Sec. 51.705(a)(1) or 51.705(a)(3); and
(2) The state commission sets forth in writing a reasonable basis
for its selection of a particular proxy for transport and termination of
telecommunications traffic, or for specific components included within
transport and termination.
(b) If a state commission establishes rates for transport and
termination of telecommunications traffic on the basis of default
proxies, such rates must meet the following requirements:
(1) Termination. The incumbent LEC's rates for the termination of
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.
(2) Transport. The incumbent LEC's rates for the transport of
telecommunications traffic, under this section, shall comply with the
proxies described in Sec. 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.
[61 FR 45619, Aug. 29, 1996, as amended at 61 FR 52709, Oct. 8, 1996]
Sec. 51.709 Rate structure for transport and termination.
(a) In state proceedings, a state commission shall establish rates
for the transport and termination of telecommunications traffic that are
structured consistently with the manner that carriers incur those costs,
and consistently with the principles in Sec. Sec. 51.507 and 51.509.
(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.
Sec. 51.711 Symmetrical reciprocal compensation.
(a) Rates for transport and termination of telecommunications
traffic shall be symmetrical, except as provided in paragraphs (b) and
(c) of this section.
(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 telecommunications traffic equal to those
that the incumbent LEC assesses upon the other carrier for the same
services.
(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.
(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.
(b) A state commission may establish asymmetrical rates for
transport and termination of telecommunications
[[Page 65]]
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 Sec. Sec. 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.
(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
telecommunications traffic based on the forward-looking costs that such
licensees incur in providing such services, pursuant to Sec. Sec.
51.505 and 51.511. Such licensees' rates shall not be set based on the
default proxies described in Sec. 51.707.
Sec. 51.713 Bill-and-keep arrangements for reciprocal compensation.
(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 telecommunications traffic that originates
on the other carrier's network.
(b) A state commission may impose bill-and-keep arrangements if the
state commission determines that the amount of telecommunications
traffic from one network to the other is roughly balanced with the
amount of telecommunications traffic flowing in the opposite direction,
and is expected to remain so, and no showing has been made pursuant to
Sec. 51.711(b).
(c) Nothing in this section precludes a state commission from
presuming that the amount of telecommunications traffic from one network
to the other is roughly balanced with the amount of telecommunications
traffic flowing in the opposite direction and is expected to remain so,
unless a party rebuts such a presumption.
Sec. 51.715 Interim transport and termination pricing.
(a) Upon request from a telecommunications carrier without an
existing interconnection arrangement with an incumbent LEC, the
incumbent LEC shall provide transport and termination of
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.
(1) This requirement shall not apply when the requesting carrier has
an existing interconnection arrangement that provides for the transport
and termination of telecommunications traffic by the incumbent LEC.
(2) A telecommunications carrier may take advantage of such an
interim arrangement only after it has requested negotiation with the
incumbent LEC pursuant to Sec. 51.301.
(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 telecommunications
traffic at symmetrical rates.
(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.
(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 Sec. 51.707, an incumbent LEC shall use these
state-determined rates as interim rates.
(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 Sec. 51.707, an incumbent LEC
shall set interim
[[Page 66]]
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 Sec. 51.707(b)(2)).
(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 telecommunications traffic subject to the interim arrangement:
(1) A voluntary agreement has been negotiated and approved by a
state commission;
(2) An agreement has been arbitrated and approved by a state
commission; or
(3) The period for requesting arbitration has passed with no such
request.
(d) If the rates for transport and termination of telecommunications
traffic in an interim arrangement differ from the rates established by a
state commission pursuant to Sec. 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 Sec. 51.705.
Sec. 51.717 Renegotiation of existing non-reciprocal arrangements.
(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 telecommunications traffic is entitled to renegotiate these
arrangements with no termination liability or other contract penalties.
(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 telecommunications
traffic that the incumbent LEC assesses upon the CMRS provider pursuant
to the pre-existing arrangement.
Subpart I_Procedures for Implementation of Section 252 of the Act
Sec. 51.801 Commission action upon a state commission's failure to
act to carry out its responsibility under section 252 of the Act.
(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.
(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.
(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.
Sec. 51.803 Procedures for Commission notification of a state
commission's failure to act.
(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:
(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;
[[Page 67]]
(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
(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.
(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.
(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.
(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.
Sec. 51.805 The Commission's authority over proceedings and matters.
(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 Commission,
pursuant to section 252(e)(5) of the Act, has assumed the state's
commission's responsibilities.
(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.
Sec. 51.807 Arbitration and mediation of agreements by the
Commission pursuant to section 252(e)(5) of the Act.
(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.
(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.
(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:
(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;
(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
(3) Provide a schedule for implementation of the terms and
conditions by the parties to the agreement.
(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:
(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.
(2) Negotiations among the parties may continue, with or without the
assistance of the arbitrator, after final
[[Page 68]]
arbitration offers are submitted. Parties may submit subsequent final
offers following such negotiations.
(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.
(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.
(f) Each final offer shall:
(1) Meet the requirements of section 251, including the rules
prescribed by the Commission pursuant to that section;
(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
(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 or if the arbitrator determines in unique circumstances that
another result would better implement the Communications Act, 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.
(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.
(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.
[61 FR 45619, Aug. 29, 1996, as amended at 66 FR 8520, Feb. 1, 2001]
Sec. 51.809 Availability of agreements to other telecommunications
carriers under section 252(i) of the Act.
(a) An incumbent LEC shall make available without unreasonable delay
to any requesting telecommunications carrier any agreement in its
entirety to which the incumbent LEC 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 agreement only to
those requesting carriers serving a comparable class of subscribers or
providing the same service (i.e., local, access, or interexchange) as
the original party to the agreement.
(b) The obligations of paragraph (a) of this section shall not apply
where the incumbent LEC proves to the state commission that:
(1) The costs of providing a particular agreement to the requesting
telecommunications carrier are greater than the costs of providing it to
the telecommunications carrier that originally negotiated the agreement,
or
(2) The provision of a particular agreement to the requesting
carrier is not technically feasible.
(c) Individual agreements 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(h) of the Act.
[69 FR 43771, July 22, 2004]
PART 52_NUMBERING--Table of Contents
Subpart A_Scope and Authority
Sec.
52.1 Basis and purpose.
52.3 General.
52.5 Definitions.
Subpart B_Administration
52.7 Definitions.
52.9 General requirements.
52.11 North American Numbering Council.
[[Page 69]]
52.12 North American Numbering Plan Administrator and B&C Agent.
52.13 North American Numbering Plan Administrator.
52.15 Central office code administration.
52.16 Billing and Collection Agent.
52.17 Costs of number administration.
52.19 Area code relief.
Subpart C_Number Portability
52.20 Thousands-block number pooling.
52.21 Definitions.
52.23 Deployment of long-term database methods for number portability by
LECs.
52.25 Database architecture and administration.
52.26 NANC Recommendations on Local Number Portability Administration.
52.31 Deployment of long-term database methods for number portability by
CMRS providers.
52.32 Allocation of the shared costs of long-term number portability.
52.33 Recovery of carrier-specific costs directly related to providing
long-term number portability.
52.34 Obligations regarding local number porting to and from
interconnected VoIP or Internet-based TRS providers.
52.35 Porting Intervals.
52.36-52.99 [Reserved]
Subpart D_Toll Free Numbers
52.101 General definitions.
52.103 Lag times.
52.105 Warehousing.
52.107 Hoarding.
52.109 Permanent cap on number reservations.
52.111 Toll free number assignment.
Appendix to Part 52--Deployment Schedule for Long-Term Database Methods
for Local Number Portability
Authority: Secs. 1, 2, 4, 5, 48 Stat. 1066, as amended; 47 U.S.C.
151, 152, 154 and 155 unless otherwise noted. Interpret or apply secs.
3, 4, 201-05, 207-09, 218, 225-27, 251-52, 271 and 332, 48 Stat. 1070,
as amended, 1077; 47 U.S.C. 153, 154, 201-05, 207-09, 218, 225-27, 251-
52, 271 and 332 unless otherwise noted.
Source: 61 FR 38637, July 25, 1996, unless otherwise noted.
Subpart A_Scope and Authority
Source: 61 FR 47353, Sept. 6, 1996, unless otherwise noted.
Sec. 52.1 Basis and purpose.
(a) Basis. These rules are issued pursuant to the Communications Act
of 1934, as amended, 47 U.S.C. 151 et. seq.
(b) Purpose. 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.
Sec. 52.3 General.
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.
Sec. 52.5 Definitions.
As used in this part:
(a) Incumbent local exchange carrier. With respect to an area, an
``incumbent local exchange carrier'' is a local exchange carrier that:
(1) On February 8, 1996, provided telephone exchange service in such
area; and
(2)(i) On February 8, 1996, was deemed to be a member of the
exchange carrier association pursuant to Sec. 69.601(b) of this chapter
(47 CFR 69.601(b)); or
(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.
(b) North American Numbering Council (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.
(c) North American Numbering Plan (NANP). The ``North American
Numbering Plan'' is the basic numbering scheme for the
telecommunications networks located in American Samoa, 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, the Commonwealth of the Northern
Mariana Islands).
[[Page 70]]
(d) State. The term ``state'' includes the District of Columbia and
the Territories and possessions.
(e) State commission. 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.
(f) Telecommunications. ``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.
(g) Telecommunications carrier. 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)).
(h) Telecommunications service. 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.
(i) Service provider. 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.
[61 FR 47353, Sept. 6, 1996, as amended at 65 FR 37707, June 16, 2000;
71 FR 65750, Nov. 9, 2006]
Subpart B_Administration
Source: 61 FR 47353, Sept. 6, 1996, unless otherwise noted.
Sec. 52.7 Definitions.
As used in this subpart:
(a) Area code or numbering plan area (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.
(b) Area code relief. 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.
(c) Central office (CO) code. 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.
(d) Central office (CO) code administrator. The term ``central
office code administrator'' refers to the entity or entities responsible
for managing central office codes in each area code.
(e) North American Numbering Plan Administrator (NANPA). The term
``North American Numbering Plan Administrator'' refers to the entity or
entities responsible for managing the NANP.
(f) Billing and Collection Agent. 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.
(g) Pooling Administrator (PA). The term ``Pooling Administrator''
refers to the entity or entities responsible for administering a
thousands-block number pool.
(h) Contamination. 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 Sec. 52.15(f)(1).
(i) Donation. The term ``donation'' refers to the process by which
carriers are required to contribute telephone numbers to a thousands-
block number pool.
[[Page 71]]
(j) Inventory. The term ``inventory'' refers to all telephone
numbers distributed, assigned or allocated:
(1) To a service provider; or
(2) To a pooling administrator for the purpose of establishing or
maintaining a thousands-block number pool.
[61 FR 47353, Sept. 6, 1996, as amended at 62 FR 55180, Oct. 23, 1997;
65 FR 37707, June 16, 2000]
Sec. 52.9 General requirements.
(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:
(1) Facilitate entry into the telecommunications marketplace by
making telecommunications numbering resources available on an efficient,
timely basis to telecommunications carriers;
(2) Not unduly favor or disfavor any particular telecommunications
industry segment or group of telecommunications consumers; and
(3) Not unduly favor one telecommunications technology over another.
(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.
Sec. 52.11 North American Numbering Council.
The duties of the North American Numbering Council (NANC), may
include, but are not limited to:
(a) Advising the Commission on policy matters relating to the
administration of the NANP in the United States;
(b) Making recommendations, reached through consensus, that foster
efficient and impartial number administration;
(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 make oral and written presentations, a
reasoned recommended solution, and a written report summarizing the
recommendation and the reasons therefore;
(d) [Reserved]
(e) Recommending to the Commission an appropriate mechanism for
recovering the costs of NANP administration in the United States,
consistent with Sec. 52.17;
(f) Carrying out the duties described in Sec. 52.25; and
(g) Carrying out this part as directed by the Commission;
(h) Monitoring the performance of the NANPA and the B&C Agent on at
least an annual basis; and
(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.
[61 FR 47353, Sept. 6, 1996, as amended at 62 FR 55180, Oct. 23, 1997;
71 FR 65750, Nov. 9, 2006]
Sec. 52.12 North American Numbering Plan Administrator and B&C Agent.
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'').
(a)(1) Neutrality. 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:
(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, or an affiliate of any interconnected
VoIP provider as that term is defined in Sec. 52.21(h). ``Affiliate''
is a person who controls, is controlled by, or is under
[[Page 72]]
the direct or indirect common control with another person. A person
shall be deemed to control another if such person possesses, directly or
indirectly--
(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
(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
(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;
(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
(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.
(2) Any subcontractor that performs--
(i) NANP administration and central office code administration, or
(ii) Billing and Collection functions, for the NANPA or for the B&C
Agent must also meet the neutrality criteria described in paragraph
(a)(1).
(b) Term of administration. 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.
(c) Changes to regulations, rules, guidelines or directives. 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.
(d) Performance review process. 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
[[Page 73]]
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.
(e) Termination. 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.
(f) Required and optional enterprise services. Enterprise Services,
which are services beyond those described in Sec. 52.13 that may be
provided by the new NANPA for specified fees, may be offered with prior
approval of the Commission.
(1) Required Enterprise Services. 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.
(2) Optional Enterprise Services. 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.
(3) Annual report. 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.
[63 FR 55180, Oct. 23, 1997, as amended at 73 FR 9481, Feb. 21, 2008]
Sec. 52.13 North American Numbering Plan Administrator.
(a) The North American Numbering Plan Administrator (NANPA) shall be
an independent and impartial non-government entity.
(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 Commission's efforts to
accommodate current and future numbering needs. It shall perform
additional functions, including but not limited to:
(1) Ensuring the efficient and effective administration and
assignment of numbering resources by performing day-to-day number
resource assignment and administrative activities;
(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;
(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;
[[Page 74]]
(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;
(5) Participating in the NANC annual performance review as described
in Sec. Sec. 52.11 and 52.12;
(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;
(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);
(8) Representing the NANP to national and international numbering
bodies;
(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;
(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;
(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;
(12) Referring requests for particular numbering resources to the
appropriate industry body where guidelines do not exist for those
resources;
(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);
(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;
(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;
(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;
(17) Providing upon request information regarding how to obtain
current documents related to NANP administration;
(18) Providing assistance to users of numbering resources and
suggesting numbering administration options, when possible, that will
optimize number resource utilization;
(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
(20) Determining the final allocation methodology for sharing costs
between NANP countries.
(c) In performing the functions outlined in paragraph (b) of this
section, the NANPA shall:
(1) Ensure that the interests of all NANP member countries are
considered;
(2) Assess fairly requests for assignments of NANP numbering
resources and ensure the assignment of numbering resources to
appropriate service providers;
(3) Develop, operate and maintain the computer hardware, software
(database) and mechanized systems required
[[Page 75]]
to perform the NANPA and central office (CO) Code Administration
functions;
(4) Manage projects such as Numbering Plan Area (NPA) relief (area
code relief) planning, Numbering Resource Utilization and Forecast
(NRUF) data collection, and NPA and NANP exhaust projection;
(5) Facilitate NPA relief planning meetings;
(6) Participate in appropriate industry activities;
(7) Manage proprietary data and competitively sensitive information
and maintain the confidentiality thereof;
(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
(9) Ensure that any action taken with respect to number
administration is consistent with this part.
(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:
(1) Numbering Plan Area (NPA) codes,
(2) Central Office codes for the 809 area,
(3) International Inbound NPA 456 NXX codes,
(4) (NPA) 500 NXX codes,
(5) (NPA) 900 NXX codes,
(6) N11 Service codes,
(7) 855-XXXX line numbers,
(8) 555-XXXX line numbers,
(9) Carrier Identification Codes,
(10) Vertical Service Codes,
(11) ANI Information Integer (II) Digit Pairs,
(12) Non Dialable Toll Points, and
(13) New numbering resources as may be defined.
(e) Relationships with other NANP member countries' administrators
and authorities. 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.
(f) Transition plan. 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.
(g) Transfer of intellectual property. 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.
[61 FR 47353, Sept. 6, 1996, as amended at 62 FR 55181, Oct. 23, 1997;
71 FR 65750, Nov. 9, 2006]
Sec. 52.15 Central office code administration.
(a) Central Office Code Administration shall be performed by the
NANPA, or another entity or entities, as designated by the Commission.
(b) Duties of the entity or entities performing central office code
administration may include, but are not limited to:
(1) Processing central office code assignment applications and
assigning such codes in a manner that is consistent with this part;
(2) Accessing and maintaining central office code assignment
databases;
(3) Conducting the Numbering Resource Utilization and Forecast
(NRUF) data collection;
[[Page 76]]
(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
(5) Planning for and initiating area code relief, consistent with
Sec. 52.19.
(c) [Reserved]
(d) Central Office (CO) Code Administration functional requirements.
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 of 47 CFR chapter I.
(e) [Reserved]
(f) Mandatory reporting requirements--(1) Number use categories.
Numbering resources must be classified in one of the following
categories:
(i) Administrative numbers are numbers used by telecommunications
carriers to perform internal administrative or operational functions
necessary to maintain reasonable quality of service standards.
(ii) Aging numbers 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 365 days.
(iii) Assigned numbers 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.
(iv) Available numbers 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.
(v) Intermediate numbers 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.
(vi) Reserved numbers 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 180 days
shall not be classified as reserved numbers.
(2) Reporting carrier. The term ``reporting carrier'' refers to a
telecommunications carrier that receives numbering resources from the
NANPA, a Pooling Administrator or another telecommunications carrier.
(3) Data collection procedures. (i) Reporting carriers shall report
utilization and forecast data to the NANPA.
(ii) Reporting shall be by separate legal entity and must include
company name, company headquarters address, Operating Company Number
(OCN), parent company OCN, and the primary type of business in which the
reporting carrier is engaged. The term ``parent company'' refers to the
highest related legal entity located within the state for which the
reporting carrier is reporting data.
(iii) All data shall be filed electronically in a format approved by
the Common Carrier Bureau.
(4) Forecast data reporting. (i) Reporting carriers shall submit to
the NANPA a five-year forecast of their yearly numbering resource
requirements.
(ii) In areas where thousands-block number pooling has been
implemented:
(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;
(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.
[[Page 77]]
(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.
(iv) Reporting carriers shall identify and report separately initial
numbering resources and growth numbering resources.
(5) Utilization data reporting. (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: assigned, intermediate, reserved,
aging, and administrative.
(ii) Rural telephone companies, as defined in the Communications Act
of 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.
(iii) All other reporting carriers shall report utilization data at
the thousands-block (NXX-X) level per rate center.
(6) Reporting frequency. (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.
(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.
(iii) A state commission seeking to reduce the reporting frequency
pursuant to paragraph (f) (6)(ii) of this section shall notify the
Wireline Competition Bureau and the NANPA in writing prior to reducing
the reporting frequency.
(7) Access to data and confidentiality--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.
(g) Applications for numbering resources--(1) General requirements.
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.
(2) Initial numbering resources. Applications for initial numbering
resources shall include evidence that:
(i) The applicant is authorized to provide service in the area for
which the numbering resources are being requested; and
(ii) The applicant is or will be capable of providing service within
sixty (60) days of the numbering resources activation date.
(3) Growth numbering resources. (i) Applications for growth
numbering resources shall include:
(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
(B) The applicant's current numbering resource utilization level for
the rate center in which it is seeking growth numbering resources.
(ii) The numbering resource utilization level shall be calculated by
dividing all assigned numbers 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.
(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.
(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 OCN. The NANPA must
notify the carrier in writing of its decision to withhold numbering
resources within ten (10)
[[Page 78]]
days of receiving a request for numbering resources. The carrier may
challenge the NANPA's decision to the appropriate state regulatory
commission. The state 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.
(4) Non-compliance. 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 commission may affirm, or may overturn, the
NANPA's decision to withhold numbering resources from the carrier based
on its determination that the carrier has complied with the reporting
and numbering resource application requirements herein. The state
commission also may overturn the NANPA's decision to withhold numbering
resources from the carrier based on its determination that the carrier
has demonstrated a verifiable need for numbering resources and has
exhausted all other available remedies.
(5) State access to applications. State regulatory commissions shall
have access to service provider's applications for numbering resources.
The state commissions should request copies of such applications from
the service providers operating within their states, and service
providers must comply with state commission requests for copies of
numbering resource applications. Carriers that fail to comply with a
state commission request for numbering resource application materials
shall be denied numbering resources.
(h) National utilization threshold. All applicants for growth
numbering resources shall achieve a 60% utilization threshold,
calculated in accordance with paragraph (g)(3)(ii) of this section, for
the rate center in which they are requesting growth numbering resources.
This 60% utilization threshold shall increase by 5% on June 30, 2002,
and annually thereafter until the utilization threshold reaches 75%.
(i) Reclamation of numbering resources. (1) Reclamation refers to
the process by which service providers are required to return numbering
resources to the NANPA or the Pooling Administrator.
(2) State commissions may investigate and determine whether service
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.
(3) Service providers may be required to reduce contamination levels
to facilitate reclamation and/or pooling.
(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.
(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.
(6) The NANPA and Pooling Administrator shall initiate reclamation
within sixty days of expiration of the service provider's applicable
activation deadline.
(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 Wireline Competition Bureau prior
to exercising the authority delegated to it in this provision.
(j) Sequential number assignment. (1) All service providers shall
assign all available telephone numbers within an
[[Page 79]]
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.
(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:
(i) A genuine request from a customer detailing the specific need
for telephone numbers; and
(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.
(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.
(k) Numbering audits. (1) All telecommunications service providers
shall be subject to ``for cause'' and random audits to verify carrier
compliance with Commission regulations and applicable industry
guidelines relating to numbering administration.
(2) The Enforcement Bureau will oversee the conduct and scope of all
numbering audits conducted under the Commission's jurisdiction, and
determine the audit procedures necessary to perform the audit. Numbering
audits performed by independent auditors pursuant to this section shall
be conducted in accordance with generally accepted auditing standards
and the American Institute of Certified Public Accountants' standards
for compliance attestation engagements, as supplemented by the guidance
and direction of the Chief of the Enforcement Bureau.
(3) Requests for ``for cause'' audits shall be forwarded to the
Chief of the Enforcement Bureau, with a copy to the Chief of the Common
Carrier Bureau. Requests must state the reason for which a ``for cause''
audit is being requested and include documentation of the alleged
anomaly, inconsistency, or violation of the Commission rules or orders
or applicable industry guidelines. The Chief of the Enforcement Bureau
will provide carriers up to 30 days to provide a written response to a
request for a ``for cause'' audit.
[61 FR 47353, Sept. 6, 1996, as amended at 62 FR 55182, Oct. 23, 1997;
65 FR 37707, June 16, 2000; 66 FR 9531, Feb. 8, 2001; 67 FR 6434, Feb.
12, 2002; 67 FR 13226, Mar. 21, 2002; 68 FR 25843, May 14, 2003; 71 FR
65750, Nov. 9, 2006]
Sec. 52.16 Billing and Collection Agent.
The B&C Agent shall:
(a) Calculate, assess, bill and collect payments for all numbering
administration functions and distribute funds to the NANPA, or other
agent designated by the Common Carrier Bureau that performs functions
related to numbering administration, on a monthly basis;
(b) Distribute to carriers the ``Telecommunications Reporting
Worksheet,'' described in Sec. 52.17(b).
(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
Wireline Competition 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
[[Page 80]]
nondisclosure of company-specific revenue information under Sec. 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.
(d) Develop procedures to monitor industry compliance with reporting
requirements and propose specific procedures to address reporting
failures and late payments;
(e) File annual reports with the appropriate regulatory authorities
of the NANP member countries as requested; and
(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.
(g) For the purposes of this rule, the term ``carrier(s)'' shall
include interconnected VoIP providers as that term is defined in Sec.
52.21(h).
[62 FR 55183, Oct. 23, 1997, as amended at 64 FR 41330, July 30, 1999;
66 FR 9532, Feb. 8, 2001; 67 FR 13226, Mar. 21, 2002; 73 FR 9481, Feb.
21, 2008]
Sec. 52.17 Costs of number administration.
All telecommunications carriers in the United States shall
contribute on a competitively neutral basis to meet the costs of
establishing numbering administration.
(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.
(b) All telecommunications carriers in the United States shall
complete and submit a ``Telecommunications Reporting Worksheet'' (as
published by the Commission in the Federal Register), 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.
(c) For the purposes of this section, the term ``telecommunications
carrier'' or ``carrier'' shall include interconnected VoIP providers as
that term is defined in Sec. 52.21(h).
[64 FR 41331, July 30, 1999, as amended at 73 FR 9481, Feb. 21, 2008]
Sec. 52.19 Area code relief.
(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.
(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,
[[Page 81]]
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.
(1) The entity or entities designated by the Commission to serve as
central 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.
(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.
(c) New area codes may be introduced through the use of:
(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;
(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
(3) An all services area code overlay, which occurs when a new area
code is introduced to serve the same geographic area as one or more
existing area code(s), subject to the following conditions:
(i) No all services area code overlay may be implemented unless all
numbering resources 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, except to the extent that a technology- or
service-specific overlay is authorized by the Commission. No group of
telecommunications carriers shall be excluded from assignment of
numbering resources in the existing area code, or be assigned such
resources only from the all services overlay area code, based solely on
that group's provision of a specific type of telecommunications service
or use of a particular technology; and
(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.
(4) A technology-specific or service-specific overlay, which occurs
when a new area code is introduced to serve the same geographic area as
one or more existing area code(s) and numbering resources in the new
area code overlay are assigned to a specific technology(ies) or
service(s). State commissions may not implement a technology-specific or
service-specific overlay without express authority from the Commission.
[61 FR 47353, Sept. 6, 1996, as amended at 64 FR 63617, Nov. 16, 1998;
64 FR 62984, Nov. 18, 1999; 67 FR 6434, Feb. 12, 2002]
Effective Date Note: At 67 FR 6434, Feb. 12, 2002, Sec. 52.19 was
amended by revising paragraph (c)(3)(i) and adding paragraph (c)(4).
These paragraphs contain information collection requirements and will
not become effective until approval has been given by the Office of
Management and Budget.
Subpart C_Number Portability
Source: 61 FR 38637, July 25, 1996, unless otherwise noted.
Redesignated at 61 FR 47353, Sept. 6, 1996.
[[Page 82]]
Sec. 52.20 Thousands-block number pooling.
(a) Definition. 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.
(b) General requirements. Pursuant to the Commission's adoption of
thousands-block number pooling as a mandatory nationwide numbering
resource optimization strategy, all carriers, except those exempted by
the Commission, must participate in thousands-block number pooling where
it is implemented and in accordance with the national thousands-block
number pooling framework and implementation schedule established by the
Commission.
(c) Donation of thousands-blocks. (1) All service providers required
to participate in thousands-block number pooling shall donate thousands-
blocks with ten percent or less contamination to the thousands-block
number pool for the rate center within which the numbering resources are
assigned.
(2) All service providers required to participate in thousands-block
number pooling shall be allowed to retain at least one thousands-block
per rate center, even if the thousands-block is ten percent or less
contaminated, as an initial block or footprint block.
(d) Thousands-Block Pooling Administrator. (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.
(2) The Pooling Administrator shall maintain no more than a six-
month inventory of telephone numbers in each thousands-block number
pool.
[65 FR 37709, June 16, 2000, as amended at 66 FR 9532, Feb. 8, 2001; 68
FR 43009, July 21, 2003]
Sec. 52.21 Definitions.
As used in this subpart:
(a) The term 100 largest MSAs includes the 100 largest MSAs as
identified in the 1990 U.S. Census reports, as set forth in the Appendix
to this part, as well as those areas identified as one of the largest
100 MSAs on subsequent updates to the U.S. Census reports.
(b) The term broadband PCS has the same meaning as that term is
defined in Sec. 24.5 of this chapter.
(c) The term cellular service has the same meaning as that term is
defined in Sec. 22.99 of this chapter.
(d) The term covered CMRS 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.
(e) The term database method means a number portability method that
utilizes one or more external databases for providing called party
routing information.
(f) The term downstream database means a database owned and operated
by an individual carrier for the purpose of providing number portability
in conjunction with other functions and services.
(g) The term incumbent wide area SMR licensee has the same meaning
as that term is defined in Sec. 20.3 of this chapter.
(h) The term ``interconnected VoIP provider'' is an entity that
provides interconnected VoIP service as that term is defined in 47 CFR
9.3.
(i) The term IP Relay provider means an entity that provides IP
Relay as defined by 47 CFR 64.601.
(j) The term local exchange carrier 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).
(k) The term local number portability administrator (LNPA) means an
independent, non-governmental entity, not aligned with any particular
telecommunications industry segment, whose duties are determined by the
NANC.
[[Page 83]]
(l) The term location portability 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.
(m) The term long-term database method means a database method that
complies with the performance criteria set forth in Sec. 52.3(a).
(n) The term number portability 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.
(o) The term regional database 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) The term Registered Internet-based TRS User has the meaning set
forth in 47 CFR 64.601.
(q) The term service control point (SCP) 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.
(r) The term service management system (SMS) means a database or
computer system not part of the public switched network that, among
other things:
(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
(2) Provides telecommunications carriers with the capability of
entering and storing data regarding the processing and completing of a
telephone call.
(s) The term service portability 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.
(t) The term service provider portability 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.
(u) The term transitional number portability measure 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.
(v) The term VRS provider means an entity that provides VRS as
defined by 47 CFR 64.601.
(w) The term 2009 LNP Porting Intervals Order refers to In the
Matters of Local Number Portability Porting Interval and Validation
Requirements; Telephone Number Portability, WC Docket No. 07-244, CC
Docket No. 95-116, Report and Order and Further Notice of Proposed
Rulemaking, FCC 09-41 (2009).
[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; 67
FR 6435, Feb. 12, 2002; 68 FR 43009, July 21, 2003; 73 FR 9481, Feb. 21,
2008; 73 FR 41293, July 18, 2008; 74 FR 31638, July 2, 2009]
Sec. 52.23 Deployment of long-term database methods for number
portability by LECs.
(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:
(1) Supports network services, features, and capabilities existing
at the time number portability is implemented, including but not limited
to emergency services, CLASS features,
[[Page 84]]
operator and directory assistance services, and intercept capabilities;
(2) Efficiently uses numbering resources;
(3) Does not require end users to change their telecommunications
numbers;
(4) Does not result in unreasonable degradation in service quality
or network reliability when implemented;
(5) Does not result in any degradation in service quality or network
reliability when customers switch carriers;
(6) Does not result in a carrier having a proprietary interest;
(7) Is able to migrate to location and service portability; and
(8) Has no significant adverse impact outside the areas where number
portability is deployed.
(b)(1) All LECs must provide a long-term database method for number
portability in the 100 largest Metropolitan Statistical Areas (MSAs), as
defined in Sec. 52.21(k), 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.
(2) Any procedure to identify and request switches for deployment of
number portability must comply with the following criteria:
(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;
(ii) Carriers must submit requests for deployment at least nine
months before the deployment deadline for the MSA;
(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
(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:
(A) For remote switches supported by a host switch equipped for
portability (``Equipped Remote Switches''), within 30 days;
(B) For switches that require software but not hardware changes to
provide portability (``Hardware Capable Switches''), within 60 days;
(C) For switches that require hardware changes to provide
portability (``Capable Switches Requiring Hardware''), within 180 days;
and
(D) For switches not capable of portability that must be replaced
(``Non-Capable Switches''), within 180 days.
(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.
(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 (i.e., no later than September 30,
1999).
(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:
(1) The facts that demonstrate why the carrier is unable to meet the
Commission's deployment schedule;
(2) A detailed explanation of the activities that the carrier has
undertaken to meet the implementation schedule prior to requesting an
extension of time;
(3) An identification of the particular switches for which the
extension is requested;
[[Page 85]]
(4) The time within which the carrier will complete deployment in
the affected switches; and
(5) A proposed schedule with milestones for meeting the deployment
date.
(f) The Chief, Wireline Competition 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.
(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.
(h)(1) Porting from a wireline carrier to a wireless carrier is
required where the requesting wireless carrier's ``coverage area,'' as
defined in paragraph (h)(2) of this section, overlaps the geographic
location in which the customer's wireline number is provisioned,
provided that the porting-in carrier maintains the number's original
rate center designation following the port.
(2) The wireless ``coverage area'' is defined as the area in which
wireless service can be received from the wireless carrier.
[61 FR 38637, July 25, 1996, as amended at 62 FR 18294, Apr. 15, 1997;
67 FR 13226, Mar. 21, 2002; 68 FR 43009, July 21, 2003; 73 FR 9481, Feb.
21, 2008]
Sec. 52.25 Database architecture and administration.
(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.
(b) All telecommunications carriers shall have equal and open access
to the regional databases.
(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.
(d) The NANC shall determine whether one or multiple
administrator(s) should be selected, whether the 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.
(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.
(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.
(g) Any state may opt out of its designated regional database and
implement a state-specific database. A state must notify the Wireline
Competition 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, Wireline Competition 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.
(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.
[[Page 86]]
(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.
[61 FR 38637, July 25, 1996. Redesignated at 61 FR 47353, Sept. 6, 1996,
as amended at 67 FR 13226, Mar. 21, 2002]
Sec. 52.26 NANC Recommendations on Local Number Portability
Administration.
(a) Local number portability administration must 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 (Working Group Report) and its appendices, which are
incorporated by reference pursuant to 5 U.S.C. 552(a) and 1 CFR part 51.
Except that: Section 7.10 of Appendix D is not incorporated herein and
all references to the porting intervals for simple wireline and simple
intermodal port requests in the Working Group Report are not
incorporated herein after Sec. 52.35 becomes effective as described in
Sec. 52.35(a).
(b) In addition to the requirements set forth in the Working Group
Report, the following requirements are established:
(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;
(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
(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 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 Wireline Competition Bureau as a
recommendation for Commission review. The Chief of the Wireline
Competition 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
Wireline Competition 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.
(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 Working Group Report and its appendices can be obtained
from the Commission's contract copier, Best Copy and Printing, Inc.
(BCPI), Portals II, 445 12th Street, SW, Room CY-B402, Washington, DC
20554, (202) 488-5300, or via e-mail at [email protected], and can be
inspected during normal business
[[Page 87]]
hours at the following locations: Reference Information Center, 445 12th
Street, SW., Room CY--A257, Washington, DC 20554 or at the National
Archives and Records Administration (NARA). For information on the
availability of this material at NARA, call (202) 741-6030, or go to:
http://www.archives.gov/federal-register/cfr/ibr-locations.html. The
Working Group Report and its appendices are also available on the
Internet at http://www.fcc.gov/wcb/cpd/Nanc/lnpastuf.html.
[62 FR 48786, Sept. 17, 1997, as amended at 65 FR 58466, Sept. 29, 2000;
67 FR 13226, Mar. 21, 2002; 69 FR 18803, Apr. 9, 2004; 74 FR 31638, July
2, 2009]
Sec. 52.31 Deployment of long-term database methods for number
portability by CMRS providers.
(a) By November 24, 2003, all covered CMRS providers must provide a
long-term database method for number portability, including the ability
to support roaming, in the 100 largest MSAs, as defined in Sec.
52.21(k), 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.
(1) Any procedure to identify and request switches for development
of number portability must comply with the following criteria:
(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;
(ii) Carries requesting deployment in the 100 largest MSAs by
November 24, 2003 must submit requests by February 24, 2003.
(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;
(iv) After November 24, 2003, a covered CMRS provider must deploy
number portability in additional switches serving the 100 largest MSAs
upon request within the following time frames:
(A) For remote switches supported by a host switch equipped for
portability (``Equipped Remote Switches''), within 30 days;
(B) For switches that require software but not hardware changes to
provide portability (``Hardware Capable Switches''), within 60 days;
(C) For switches that require hardware changes to provide
portability (``Capable Switches Requiring Hardware''), within 180 days;
and
(D) For switches not capable of portability that must be replaced
(``Non-Capable Switches''), within 180 days.
(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.
(2) By November 24, 2002, all covered CMRS providers must be able to
support roaming nationwide.
(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.
(c) [Reserved]
(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:
[[Page 88]]
(1) The facts that demonstrate why the carrier is unable to meet our
deployment schedule;
(2) A detailed explanation of the activities that the carrier has
undertaken to meet the implementation schedule prior to requesting an
extension of time;
(3) An identification of the particular switches for which the
extension is requested;
(4) The time within which the carrier will complete deployment in
the affected switches; and
(5) A proposed schedule with milestones for meeting the deployment
date.
(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.
[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; 68 FR 43009,
July 21, 2003; 71 FR 65750, Nov. 9, 2006]
Sec. 52.32 Allocation of the shared costs of long-term number
portability.
(a) The local number portability administrator, as defined in Sec.
52.21(h), of each regional database, as defined in Sec. 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 Sec. 52.26, the local number portability
administrator shall collect sufficient revenues to fund the operation of
the regional database by:
(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
(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:
(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.
(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 Federal Register),
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 Wireline Competition 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.
(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 Wireline
Competition 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
[[Page 89]]
local number portability administrators shall keep confidential all data
obtained from other administrators. The 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 Sec. 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.
(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.
(e) For the purposes of this section, the term ``telecommunications
carrier'' shall include interconnected VoIP providers as that term is
defined in Sec. 52.21(h); and ``telecommunications service'' shall
include ``interconnected VoIP service'' as that term is defined in 47
CFR 9.3.
[63 FR 35160, June 29, 1998, as amended at 64 FR 41331, July 30, 1999;
67 FR 13226, Mar. 21, 2002; 73 FR 9481, Feb. 21, 2008]
Sec. 52.33 Recovery of carrier-specific costs directly related to
providing long-term number portability.
(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) of this section, a number portability
query-service charge, as specified in paragraph (a)(2) of this section,
and a monthly number-portability query/administration charge, as
specified in paragraph (a)(3) of this section.
(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 5 five years after the incumbent
local exchange carrier's monthly number-portability charge takes effect.
(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:
(A) One PBX trunk shall receive nine monthly number-portability
charges.
(B) One PRI ISDN line shall receive five monthly number-portability
charges.
(C) Lifeline Assistance Program customers shall not receive the
monthly number-portability charge.
(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/or Feature Group A access lines, and resellers of the incumbent
local exchange carrier's local service, the same charges as described in
paragraph (a)(1)(i) of this section, as if the incumbent local exchange
carrier were serving those carriers' end users.
(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.
(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.
(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
[[Page 90]]
to carriers on a prearranged and default basis.
(3) An incumbent local exchange carrier serving an area outside the
100 largest metropolitan statistical areas that is not number-
portability capable but that participates in an extended area service
calling plan with any one of the 100 largest metropolitan statistical
areas or with an adjacent number portability-capable local exchange
carrier may assess each end user it serves one monthly number-
portability query/administration charge per line to recover the costs of
queries, as specified in paragraph (a)(2) of this section, and carrier-
specific costs directly related to the carrier's allocated share of the
regional local number portability administrator's costs, except that
per-line monthly number-portability query/administration charges shall
be assigned as specified in paragraph (a)(1) of this section with
respect to monthly number-portability charges.
(i) Such incumbent local exchange carriers may assess a separate
monthly number-portability charge as specified in paragraph (a)(1) of
this section but such charge may recover only the costs incurred to
implement number portability functionality and shall not include costs
recovered through the monthly number-portability query/administration
charge.
(ii) The monthly number-portability query/administration charge may
end no later than five years after the incumbent local exchange
carrier's monthly number-portability query/administration charge takes
effect. The monthly number-portability query/administration charge may
be collected over a different five-year period than the monthly number-
portability charge. These five-year periods may run either consecutively
or concurrently, in whole or in part.
(b) All interconnected VoIP providers and 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.
[63 FR 35161, June 29, 1998, as amended at 67 FR 40620, June 13, 2002;
73 FR 9481, Feb. 21, 2008]
Effective Date Notes: 1. At 63 FR 35161, June 29, 1998, Sec. 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.
2. At 67 FR 40620, June 13, 2002, Sec. 52.33 was amended by adding
paragraph (a)(3), which contains information collection requirements and
will not become effective until approval has been given by the Office of
Management and Budget.
Sec. 52.34 Obligations regarding local number porting to and from
interconnected VoIP or Internet-based TRS providers.
(a) An interconnected VoIP or VRS or IP Relay provider must
facilitate an end-user customer's or a Registered Internet-based TRS
User's valid number portability request, as it is defined in this
subpart, either to or from a telecommunications carrier or an
interconnected VoIP or VRS or IP Relay provider. ``Facilitate'' is
defined as the interconnected VoIP or VRS or IP Relay provider's
affirmative legal obligation to take all steps necessary to initiate or
allow a port-in or port-out itself or through the telecommunications
carriers, if any, that it relies on to obtain numbering resources,
subject to a valid port request, without unreasonable delay or
unreasonable procedures that have the effect of delaying or denying
porting of the NANP-based telephone number.
(b) An interconnected VoIP or VRS or IP Relay provider may not enter
into any agreement that would prohibit an end-user customer or a
Registered Internet-based TRS User from porting between interconnected
VoIP or VRS or IP Relay providers, or to or from a telecommunications
carrier.
[73 FR 9481, Feb, 21, 2008, as amended at 73 FR 41294, July 18, 2008]
Sec. 52.35 Porting Intervals.
(a) Nine months after the NANC submits its port provisioning process
flows to the Commission as provided in the 2009 LNP Porting Interval
Order, all telecommunications carriers required by the Commission to
port telephone numbers must complete a simple wireline-to-wireline or
simple intermodal port request within one business day unless a longer
period is requested
[[Page 91]]
by the new provider or by the customer. Small providers, as described in
the 2009 LNP Porting Interval Order, must comply with this section 15
months after the NANC submits its port provisioning process flows to the
Commission as provided in the 2009 LNP Porting Interval Order. For
purposes of this section, simple intermodal ports include wireline-to-
wireless ports, wireless-to-wireline ports, and ports involving
interconnected Voice over Internet Protocol (VoIP) service.
(b) Unless directed otherwise by the Commission, any
telecommunications carrier granted a waiver by the Commission of the
one-business day porting interval described in paragraph (a) of this
section must complete a simple wireline-to-wireline or simple intermodal
port request within four business days unless a longer period is
requested by the new provider or by the customer.
(c) For purposes of this section, the term ``telecommunications
carrier'' includes an interconnected VoIP provider as that term is
defined in Sec. 52.21(h).
(d) Once effective as described in paragraph (a) of this section
supersedes any porting interval requirements for simple wireline or
simple intermodal port requests incorporated by reference in Sec.
52.26.
[74 FR 31638, July 2, 2009]
Sec. Sec. 52.36-52.99 [Reserved]
Subpart D_Toll Free Numbers
Source: 62 FR 20127, Apr. 25, 1997, unless otherwise noted.
Sec. 52.101 General definitions.
As used in this part:
(a) Number Administration and Service Center (``NASC''). 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.
(b) Responsible Organization (``RespOrg''). 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.
(c) Service Control Points. The regional databases in the toll free
network.
(d) Service Management System Database (``SMS Database''). 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.
(e) Toll Free Subscriber. The entity that requests a Responsible
Organization to reserve a toll free number from the SMS database.
(f) Toll Free Number. 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.
Sec. 52.103 Lag times.
(a) Definitions. As used in this section, the following definitions
apply:
(1) Assigned Status. 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.
(2) Disconnect Status. The toll free number has been discontinued
and an exchange carrier intercept recording is being provided.
(3) Lag Time. 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.
(4) Reserved Status. The toll free number has been reserved from the
Service Management System database by a Responsible Organization for a
toll free subscriber.
(5) Seasonal Numbers. Toll free numbers held by toll free
subscribers who do not have a year-round need for a toll free number.
[[Page 92]]
(6) Spare Status. The toll free number is available for assignment
by a Responsible Organization.
(7) Suspend Status. The toll free service has been temporarily
disconnected and is scheduled to be reactivated.
(8) Unavailable Status. The toll free number is not available for
assignment due to an unusual condition.
(9) Working Status. The toll free number is loaded in the Service
Control Points and is being utilized to complete toll free service
calls.
(b) Reserved Status. 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.
(c) Assigned Status. 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.
(d) Disconnect Status. 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 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.
(e) Suspend Status. 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.
(f) Unavailable Status. (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.
(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 Sec. 52.103(f)(1) of these rules if it wants DSMI to place
a particular toll free number in unavailable status.
Sec. 52.105 Warehousing.
(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.
(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:
(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
(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.
(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.
(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
[[Page 93]]
to be billed for service associated with the toll free number.
(e) Tariff Provision. The following provision shall be included in
the Service Management System tariff and in the local exchange carriers'
toll free database access tariffs:
[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 Sec. 201(b) of the Communications Act and is inconsistent with
the Commission's obligation under Sec. 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.
Sec. 52.107 Hoarding.
(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.
(1) Toll free subscribers shall not hoard toll free numbers.
(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.
(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.
(b) Tariff Provision. The following provision shall be included in
the Service Management System tariff and in the local exchange carriers'
toll free database access tariffs:
[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.
Sec. 52.109 Permanent cap on number reservations.
(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.
(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.
(c) The Wireline Competition 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
Wireline Competition Bureau shall establish, modify, and monitor toll
free number conservation plans when exigent circumstances necessitate
such action.
[62 FR 20127, Apr. 25, 1997, as amended at 67 FR 13226, Mar. 21, 2002]
Sec. 52.111 Toll free number assignment.
Toll free numbers shall be made available on a first-come, first-
served basis unless otherwise directed by the Commission.
[63 FR 16441, Apr. 3, 1998]
Sec. Appendix to Part 52--Deployment Schedule for Long-Term Database
Methods for Local Number Portability
Implementation must be completed by the carriers in the relevant
MSAs during the periods specified below:
Phase I--10/1/97-3/31/98
Chicago, IL................................................... 3
Philadelphia, PA.............................................. 4
Atlanta, GA................................................... 8
New York, NY.................................................. 2
[[Page 94]]
Los Angeles, CA............................................... 1
Houston, TX................................................... 7
Minneapolis, MN............................................... 12
Phase II--1/1/98-5/15/98
Detroit, MI................................................... 6
Cleveland, OH................................................. 20
Washington, DC................................................ 5
Baltimore, MD................................................. 18
Miami, FL..................................................... 24
Fort Lauderdale, FL........................................... 39
Orlando, FL................................................... 40
Cincinnati, OH................................................ 30
Tampa, FL..................................................... 23
Boston, MA.................................................... 9
Riverside, CA................................................. 10
San Diego, CA................................................. 14
Dallas, TX.................................................... 11
St. Louis, MO................................................. 16
Phoenix, AZ................................................... 17
Seattle, WA................................................... 22
Phase III--4/1/98-6/30/98
Indianapolis, IN.............................................. 34
Milwaukee, WI................................................. 35
Columbus, OH.................................................. 38
Pittsburgh, PA................................................ 19
Newark, NJ.................................................... 25
Norfolk, VA................................................... 32
New Orleans, LA............................................... 41
Charlotte, NC................................................. 43
Greensboro, NC................................................ 48
Nashville, TN................................................. 51
Las Vegas, NV................................................. 50
Nassau, NY.................................................... 13
Buffalo, NY................................................... 44
Orange Co, CA................................................. 15
Oakland, CA................................................... 21
San Francisco, CA............................................. 29
Rochester, NY................................................. 49
Kansas City, KS............................................... 28
Fort Worth, TX................................................ 33
Hartford, CT.................................................. 46
Denver, CO.................................................... 26
Portland, OR.................................................. 27
Phase IV--7/1/98-9/30/98
Grand Rapids, MI.............................................. 56
Dayton, OH.................................................... 61
Akron, OH..................................................... 73
Gary, IN...................................................... 80
Bergen, NJ.................................................... 42
Middlesex, NJ................................................. 52
Monmouth, NJ.................................................. 54
Richmond, VA.................................................. 63
Memphis, TN................................................... 53
Louisville, KY................................................ 57
Jacksonville, FL.............................................. 58
Raleigh, NC................................................... 59
West Palm Beach, FL........................................... 62
Greenville, SC................................................ 66
Honolulu, HI.................................................. 65
Providence, RI................................................ 47
Albany, NY.................................................... 64
San Jose, CA.................................................. 31
Sacramento, CA................................................ 36
Fresno, CA.................................................... 68
San Antonio, TX............................................... 37
Oklahoma City, OK............................................. 55
Austin, TX.................................................... 60
Salt Lake City, UT............................................ 45
Tucson, AZ.................................................... 71
Phase V--10/1/98-12/31/98
Toledo, OH.................................................... 81
Youngstown, OH................................................ 85
Ann Arbor, MI................................................. 95
Fort Wayne, IN................................................ 100
Scranton, PA.................................................. 78
Allentown, PA................................................. 82
Harrisburg, PA................................................ 83
Jersey City, NJ............................................... 88
Wilmington, DE................................................ 89
Birmingham, AL................................................ 67
Knoxville, KY................................................. 79
Baton Rouge, LA............................................... 87
Charleston, SC................................................ 92
Sarasota, FL.................................................. 93
Mobile, AL.................................................... 96
Columbia, SC.................................................. 98
Tulsa, OK..................................................... 70
Syracuse, NY.................................................. 69
Springfield, MA............................................... 86
Ventura, CA................................................... 72
Bakersfield, CA............................................... 84
Stockton, CA.................................................. 94
Vallejo, CA................................................... 99
El Paso, TX................................................... 74
Little Rock, AR............................................... 90
Wichita, KS................................................... 97
New Haven, CT................................................. 91
Omaha, NE..................................................... 75
Albuquerque, NM............................................... 76
Tacoma, WA.................................................... 77
[62 FR 18295, Apr. 15, 1997]
PART 53_SPECIAL PROVISIONS CONCERNING BELL OPERATING COMPANIES--Table
of Contents
Subpart A_General Information
Sec.
53.1 Basis and purpose.
53.3 Terms and definitions.
Subpart B--Bell Operating Company Entry into InterLATA Services
[[Page 95]]
Subpart C_Separate Affiliate; Safeguards
53.201 Services for which a section 272 affiliate is required.
53.203 Structural and transactional requirements.
53.205 Fulfillment of certain requests. [Reserved]
53.207 Successor or assign.
53.209 Biennial audit.
53.211 Audit planning.
53.213 Audit analysis and evaluation.
Subpart D_Manufacturing by Bell Operating Companies
53.301 [Reserved]
Subpart E_Electronic Publishing by Bell Operating Companies
53.401 [Reserved]
Subpart F_Alarm Monitoring Services
53.501 [Reserved]
Authority: 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.
Source: 62 FR 2967, Jan. 21, 1997, unless otherwise noted.
Subpart A_General Information
Sec. 53.1 Basis and purpose.
(a) Basis. The rules in this part are issued pursuant to the
Communications Act of 1934, as amended.
(b) Purpose. 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.
Sec. 53.3 Terms and definitions.
Terms used in this part have the following meanings:
Act. The Act means the Communications Act of 1934, as amended.
Affiliate. 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.
AT&T Consent Decree. The AT&T Consent Decree is the order entered
August 24, 1982, in the antitrust action styled United States v. Western
Electric, 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.
Bell Operating Company (BOC). The term Bell operating company
(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
(2) Includes any successor or assign of any such company that
provides wireline telephone exchange service; but
(3) Does not include an affiliate of any such company, other than an
affiliate described in paragraphs (1) or (2) of this definition.
In-Region InterLATA service. In-region interLATA service is
interLATA service 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.
[[Page 96]]
InterLATA Information Service. An interLATA information service is
an information service that incorporates as a necessary, bundled element
an interLATA telecommunications transmission component, provided to the
customer for a single charge.
InterLATA Service. An interLATA service 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.
Local Access and Transport Area (LATA). A LATA is a contiguous
geographic area:
(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
(2) Established or modified by a BOC after February 8, 1996 and
approved by the Commission.
Local Exchange Carrier (LEC). A LEC 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 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.
Out-of-Region InterLATA service. Out-of-region interLATA service is
interLATA service that originates outside a BOC's in-region states.
Section 272 affiliate. A section 272 affiliate 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.
Subpart B--Bell Operating Company Entry Into InterLATA Services
Subpart C_Separate Affiliate; Safeguards
Sec. 53.201 Services for which a section 272 affiliate is required.
For the purposes of applying section 272(a)(2) of the Act:
(a) Previously authorized activities. When providing previously
authorized activities described in section 271(f) of the Act, a BOC
shall comply with the following:
(1) A BOC shall provide previously authorized interLATA information
services and manufacturing activities through a section 272 affiliate no
later than February 8, 1997.
(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.
(b) InterLATA information services. 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.
(c) Out-of-region interLATA information services. A BOC shall
provide out-of-region interLATA information services through a section
272 affiliate.
Sec. 53.203 Structural and transactional requirements.
(a) Operational independence. 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.
(b) Separate books, records, and accounts. 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.
(c) Separate officers, directors, and employees. A section 272
affiliate shall have separate officers, directors, and
[[Page 97]]
employees from the BOC of which it is an affiliate.
(d) Credit arrangements. 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.
(e) Arm's-length transactions. 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 Sec. 32.27
of this chapter, with any such transactions reduced to writing and
available for public inspection.
[62 FR 2967, Jan. 21, 1997, as amended at 69 FR 16496, Mar. 30, 2004; 70
FR 55302, Sept. 21, 2005]
Effective Date Note: At 62 FR 2967, Jan. 21, 1997, Sec. 53.203 was
added. Paragraphs (b) and (e) of this section contain information
collection requirements and will not become effective until approval has
been given by the Office of Management and Budget.
Sec. 53.205 Fulfillment of certain requests. [Reserved]
Sec. 53.207 Successor or assign.
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.
[62 FR 2967, Jan. 21, 1997; 63 FR 34604, June 25, 1998]
Sec. 53.209 Biennial audit.
(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.
(b) The independent audit shall determine:
(1) Whether the separate affiliate required under section 272 of the
Act has:
(i) Operated independently of the Bell operating company;
(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;
(iii) Officers, directors and employees that are separate from those
of the Bell operating company;
(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
(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.
(2) Whether or not the Bell operating company has:
(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;
(ii) Accounted for all transactions with the separate affiliate in
accordance with the accounting principles and rules approved by the
Commission.
(3) Whether or not the Bell operating company and an affiliate
subject to section 251(c) of the Act:
(i) Have fulfilled requests from unaffiliated entities for telephone
exchange service and exchange access within a period no longer than the
period in which it provides such telephone exchange service and exchange
access to itself or its affiliates;
(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;
(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
[[Page 98]]
than the amount charged to any unaffiliated interexchange carriers for
such service; and
(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.
(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.
(d) The Chief, Enforcement 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 Sec. 53.211 and the analysis and evaluation
of the audit as specified in Sec. 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, Enforcement 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.
[62 FR 2926, Jan. 21, 1997, as amended at 67 FR 13226, Mar. 21, 2002]
Sec. 53.211 Audit planning.
(a) Before selecting an 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
Sec. 53.209(d);
(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 Sec. 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.
(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.
(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.
(e) During the course of the biennial audit, the independent
auditor, among other things, shall:
(1) Inform the Federal/State joint audit team of any revisions to
the final audit program or to the scope of the audit.
(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.
(3) Submit to the Chief, Enforcement Bureau, any accounting or rule
interpretations necessary to complete the audit.
[62 FR 2926, Jan. 21, 1997, as amended at 67 FR 13226, Mar. 21, 2002]
Sec. 53.213 Audit analysis and evaluation.
(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.
(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
[[Page 99]]
joint audit team to the finding and conclusions of the independent
auditor that remain unresolved shall be included in the final audit
report.
(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.
(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.
(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.
(d) Interested parties may file comments with the Commission within
60 days after the audit report is made available for public inspection.
[62 FR 2927, Jan. 21, 1997]
Subpart D_Manufacturing by Bell Operating Companies
Sec. 53.301 [Reserved]
Subpart E_Electronic Publishing by Bell Operating Companies
Sec. 53.401 [Reserved]
Subpart F_Alarm Monitoring Services
Sec. 53.501 [Reserved]
PART 54_UNIVERSAL SERVICE--Table of Contents
Subpart A_General Information
Sec.
54.1 Basis and purpose.
54.5 Terms and definitions.
54.7 Intended use of federal universal service support.
54.8 Prohibition on participation: suspension and debarment.
Subpart B_Services Designated for Support
54.101 Supported services for rural, insular and high cost areas.
Subpart C_Carriers Eligible for Universal Service Support
54.201 Definition of eligible telecommunications carriers, generally.
54.202 Additional requirements for Commission designation of eligible
telecommunications carriers.
54.203 Designation of eligible telecommunications carriers for unserved
areas.
54.205 Relinquishment of universal service.
54.207 Service areas.
54.209 Annual reporting requirements for designated eligible
telecommunications carriers.
Subpart D_Universal Service Support for High Cost Areas
54.301 Local switching support.
54.303 Long term support.
54.305 Sale or transfer of exchanges.
54.307 Support to a competitive eligible telecommunications carrier.
54.309 Calculation and distribution of forward-looking support for non-
rural carriers.
54.311 Interim hold-harmless support for non-rural carriers.
54.313 State certification of support for non-rural carriers.
[[Page 100]]
54.314 State certification of support for rural carriers.
54.315 Disaggregation and targeting of high-cost support.
54.316 Rate comparability review and certification for areas served by
non-rural carriers.
Subpart E_Universal Service Support for Low Income Consumers
54.400 Terms and definitions.
54.401 Lifeline defined.
54.403 Lifeline support amount.
54.405 Carrier obligation to offer Lifeline.
54.407 Reimbursement for offering Lifeline.
54.409 Consumer qualification for Lifeline.
54.410 Certification and Verification of Consumer Qualification for
Lifeline.
54.411 Link Up program defined.
54.413 Reimbursement for revenue forgone in offering a Link Up program.
54.415 Consumer qualification for Link Up.
54.416 Certification of consumer Qualification for Link Up.
54.417 Recordkeeping requirements.
54.418 Digital television transition notices by eligible
telecommunications carriers.
Subpart F_Universal Service Support for Schools and Libraries
54.500 Terms and definitions.
54.501 Eligibility for services provided by telecommunications carriers.
54.502 Supported telecommunications services.
54.503 Other supported special services.
54.504 Requests for services.
54.505 Discounts.
54.506 Internal connections.
54.507 Cap.
54.508 Technology plans.
54.509 Adjustments to the discount matrix.
54.511 Ordering services.
54.513 Resale and transfer of services.
54.514 Payment for discounted service.
54.515 Distributing support.
54.516 Auditing.
54.517 Services provided by non-telecommunications carriers.
54.518 Support for wide area networks.
54.519 State telecommunications networks.
54.520 Children's Internet Protection Act certifications required from
recipients of discounts under the federal universal service
support mechanism for schools and libraries.
54.522 Eligible services list.
54.523 Payment for the non-discount portion of supported services.
Subpart G_Universal Service Support for Health Care Providers
54.601 Eligibility.
54.603 Competitive bid requirements.
54.604 Existing contracts.
54.605 Determining the urban rate.
54.607 Determining the rural rate.
54.609 Calculating support.
54.611 Distributing support.
54.613 Limitations on supported services for rural health care
providers.
54.615 Obtaining services.
54.617 Resale.
54.619 Audits and recordkeeping.
54.621 Access to advanced telecommunications and information services.
54.623 Cap.
54.625 Support for services beyond the maximum supported distance for
rural health care providers.
Subpart H_Administration
54.701 Administrator of universal service support mechanisms.
54.702 Administrator's functions and responsibilities.
54.703 The Administrator's Board of Directors.
54.704 The Administrator's Chief Executive Officer.
54.705 Committees of the Administrator's Board of Directors.
54.706 Contributions.
54.707 Audit controls.
54.708 De minimis exemption.
54.709 Computations of required contributions to universal service
support mechanisms.
54.711 Contributor reporting requirements.
54.712 Contributor recovery of universal service costs from end users.
54.713 Contributors' failure to report or to contribute.
54.715 Administrative expenses of the Administrator.
54.717 Audits of the Administrator.
Subpart I_Review of Decisions Issued by the Administrator
54.719 Parties permitted to seek review of Administrator decisions.
54.720 Filing deadlines.
54.721 General filing requirements.
54.722 Review by the Wireline Competition Bureau or the Commission.
54.723 Standard of review.
54.724 Time periods for Commission approval of Administrator decisions.
54.725 Universal service disbursements during pendency of a request for
review and Administrator decision.
Subpart J_Interstate Access Universal Service Support Mechanism
54.800 Terms and definitions.
54.801 General.
54.802 Obligations of local exchange carriers and the Administrator.
[[Page 101]]
54.803 Universal service zones.
54.804 Preliminary minimum access universal service support for a study
area calculated by the Administrator.
54.805 Zone and study area above benchmark revenues calculated by the
Administrator.
54.806 Calculation by the Administrator of interstate access universal
service support for areas served by price cap local exchange
carriers.
54.807 Interstate access universal service support.
54.808 Transition provisions and periodic calculation.
54.809 Carrier certification.
Subpart K_Interstate Common Line Support Mechanism for Rate-of-Return
Carriers
54.901 Calculation of Interstate Common Line Support.
54.902 Calculation of Interstate Common Line Support for transferred
exchanges.
54.903 Obligations of rate-of-return carriers and the Administrator.
54.904 Carrier certification.
Authority: 47 U.S.C. 151, 154(i), 201, 205, 214, and 254 unless
otherwise noted.
Source: 62 FR 32948, June 17, 1997, unless otherwise noted.
Subpart A_General Information
Sec. 54.1 Basis and purpose.
(a) Basis. These rules are issued pursuant to the Communications Act
of 1934, as amended.
(b) Purpose. The purpose of these rules is to implement section 254
of the Communications Act of 1934, as amended, 47 USC 254.
Sec. 54.5 Terms and definitions.
Terms used in this part have the following meanings:
Act. The term ``Act'' refers to the Communications Act of 1934, as
amended.
Administrator. 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.
Competitive eligible telecommunications carrier. 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
Sec. 51.5 of this chapter.
Contributor. The term ``contributor'' shall refer to an entity
required to contribute to the universal service support mechanisms
pursuant to Sec. 54.706.
Eligible telecommunications carrier. ``Eligible telecommunications
carrier'' means a carrier designated as such by a state commission
pursuant to Sec. 54.201.
Incumbent local exchange carrier. ``Incumbent local exchange
carrier'' or ``ILEC'' has the same meaning as that term is defined in
Sec. 51.5 of this chapter.
Information service. ``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.
Interconnected VoIP Provider. An ``interconnected VoIP provider'' is
an entity that provides interconnected VoIP service, as that term is
defined in section 9.3 of these rules.
Internet access. ``Internet access'' includes the following
elements:
(1) The transmission of information as common carriage;
(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
(3) Electronic mail services (e-mail).
Interstate telecommunication. ``Interstate telecommunication'' is a
communication or transmission:
(1) From any State, Territory, or possession of the United States
(other than the Canal zone), or the District of
[[Page 102]]
Columbia, to any other State, Territory, or possession of the United
States (other than the Canal Zone), or the District of Columbia,
(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
(3) Between points within the United States but through a foreign
country.
Interstate transmission. ``Interstate transmission'' is the same as
interstate telecommunication.
Intrastate telecommunication. ``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.
Intrastate transmission. ``Intrastate transmission'' is the same as
intrastate telecommunication.
LAN. ``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.
Rate-of-return carrier. ``Rate-of-return carrier'' shall refer to
any incumbent local exchange carrier not subject to price cap regulation
as that term is defined in Sec. 61.3(x) of this chapter.
Rural area. For purposes of the schools and libraries universal
support mechanism, 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 U.S. Department of Health and Human Services. For
purposes of the rural health care universal service support mechanism, a
``rural area'' is an area that is entirely outside of a Core Based
Statistical Area; is within a Core Based Statistical Area that does not
have any Urban Area with a population of 25,000 or greater; or is in a
Core Based Statistical Area that contains an Urban Area with a
population of 25,000 or greater, but is within a specific census tract
that itself does not contain any part of a Place or Urban Area with a
population of greater than 25,000. ``Core Based Statistical Area'' and
``Urban Area'' are as defined by the Census Bureau and ``Place'' is as
identified by the Census Bureau.
Rural incumbent local exchange carrier. ``Rural incumbent local
exchange carrier'' is a carrier that meets the definitions of ``rural
telephone company'' and ``incumbent local exchange carrier,'' as those
terms are defined in Sec. 51.5 of this chapter.
Rural telephone company. ``Rural telephone company'' has the same
meaning as that term is defined in Sec. 51.5 of this chapter.
State commission. 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.
Technically feasible. ``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.
Telecommunications. ``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.
Telecommunications carrier. 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
[[Page 103]]
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.
Telecommunications channel. ``Telecommunications channel'' means a
telephone line, or, in the case of wireless communications, a
transmittal line or cell site.
Telecommunications service. ``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.
Website. 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.
Wire center. 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.
[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; 66 FR 30087, June 5,
2001; 66 FR 59726, Nov. 30, 2001; 70 FR 6372, Feb. 7, 2005; 71 FR 38796,
July 10, 2006]
Effective Date Note: At 71 FR 38796, July 10, 2006, Sec. 54.5 was
amended by revising the definition of ``contributor'' and adding the
definition of ``interconnected VoIP provider'' in alphabetical order.
This text contains information collection and recordkeeping requirements
and will not become effective until approval has been given by the
Office of Management and Budget.
Sec. 54.7 Intended use of federal universal service support.
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.
Sec. 54.8 Prohibition on participation: suspension and debarment.
(a) Definitions--(1) Activities associated with or related to the
schools and libraries support mechanism, the high-cost support
mechanism, the rural health care support mechanism, and the low-income
support mechanism. Such matters include the receipt of funds or
discounted services through one or more of these support mechanisms, or
consulting with, assisting, or advising applicants or service providers
regarding one or more of these support mechanisms.
(2) Civil liability. The disposition of a civil action by any court
of competent jurisdiction, whether entered by verdict, decision,
settlement with admission of liability, stipulation, or otherwise
creating a civil liability for the wrongful acts complained of, or a
final determination of liability under the Program Fraud Civil Remedies
Act of 1988 (31 U.S.C. 3801-12).
(3) Consultant. A person that for consideration advises or consults
a person regarding the schools and libraries support mechanism, but who
is not employed by the person receiving the advice or consultation.
(4) Conviction. A judgment or conviction of a criminal offense by
any court of competent jurisdiction, whether entered by verdict or a
plea, including a plea of nolo contendere.
(5) Debarment. Any action taken by the Commission in accordance with
these regulations to exclude a person from activities associated with or
relating to the schools and libraries support mechanism, the high-cost
support mechanism, the rural health care support mechanism, and the low-
income support mechanism. A person so excluded is ``debarred.''
(6) Person. Any individual, group of individuals, corporation,
partnership, association, unit of government or legal entity, however
organized.
[[Page 104]]
(7) Suspension. An action taken by the Commission in accordance with
these regulations that immediately excludes a person from activities
associated with or relating to the schools and libraries support
mechanism, the high-cost support mechanism, the rural health care
support mechanism, and the low-income support mechanism for a temporary
period, pending completion of the debarment proceedings. A person so
excluded is ``suspended.''
(b) Suspension and debarment in general. The Commission shall
suspend and debar a person for any of the causes in paragraph (c) of
this section using procedures established in this section, absent
extraordinary circumstances.
(c) Causes for suspension and debarment. Causes for suspension and
debarment are conviction of or civil judgment for attempt or commission
of criminal fraud, theft, embezzlement, forgery, bribery, falsification
or destruction of records, making false statements, receiving stolen
property, making false claims, obstruction of justice and other fraud or
criminal offense arising out of activities associated with or related to
the schools and libraries support mechanism, the high-cost support
mechanism, the rural health care support mechanism, and the low-income
support mechanism.
(d) Effect of suspension and debarment. Unless otherwise ordered,
any persons suspended or debarred shall be excluded from activities
associated with or related to the schools and libraries support
mechanism, the high-cost support mechanism, the rural health care
support mechanism, and the low-income support mechanism. Suspension and
debarment of a person other than an individual constitutes suspension
and debarment of all divisions and/or other organizational elements from
participation in the program for the suspension and debarment period,
unless the notice of suspension and proposed debarment is limited by its
terms to one or more specifically identified individuals, divisions, or
other organizational elements or to specific types of transactions.
(e) Procedures for suspension and debarment. The suspension and
debarment process shall proceed as follows:
(1) Upon evidence that there exists cause for suspension and
debarment, the Commission shall provide prompt notice of suspension and
proposed debarment to the person. Suspension shall be effective upon the
earlier of receipt of notification or publication in the Federal
Register.
(2) The notice shall:
(i) Give the reasons for the proposed debarment in terms sufficient
to put a person on notice of the conduct or transaction(s) upon which it
is based and the cause relied upon, namely, the entry of a criminal
conviction or civil judgment arising out of activities associated with
or related to the schools and libraries support mechanism, the high-cost
support mechanism, the rural health care support mechanism, and the low-
income support mechanism;
(ii) Explain the applicable debarment procedures;
(iii) Describe the effect of debarment.
(3) A person subject to proposed debarment, or who has an existing
contract with a person subject to proposed debarment or intends to
contract with such a person to provide or receive services in matters
arising out of activities associated with or related to the schools and
libraries support mechanism, the high-cost support mechanism, the rural
health care support mechanism, and the low-income support mechanism may
contest debarment or the scope of the proposed debarment. A person
contesting debarment or the scope of proposed debarment must file
arguments and any relevant documentation within thirty (30) calendar
days of receipt of notice or publication in the Federal Register,
whichever is earlier.
(4) A person subject to proposed debarment, or who has an existing
contract with a person subject to proposed debarment or intends to
contract with such a person to provide or receive services in matters
arising out of activities associated with or related to the schools and
libraries support mechanism, the high-cost support mechanism, the rural
health care support mechanism, and the low-income support mechanism may
also contest suspension or the scope of suspension, but such action will
not ordinarily be
[[Page 105]]
granted. A person contesting suspension or the scope of suspension must
file arguments and any relevant documentation within thirty (30)
calendar days of receipt of notice or publication in the Federal
Register, whichever is earlier.
(5) Within ninety (90) days of receipt of any information submitted
by the respondent, the Commission, in the absence of extraordinary
circumstances, shall provide the respondent prompt notice of the
decision to debar. Debarment shall be effective upon the earlier of
receipt of notice or publication in the Federal Register.
(f) Reversal or limitation of suspension or debarment. The
Commission may reverse a suspension or debarment, or limit the scope or
period of suspension or debarment, upon a finding of extraordinary
circumstances, after due consideration following the filing of a
petition by an interested party or upon motion by the Commission.
Reversal of the conviction or civil judgment upon which the suspension
and debarment was based is an example of extraordinary circumstances.
(g) Time period for debarment. A debarred person shall be prohibited
from involvement with the schools and libraries support mechanism for
three (3) years from the date of debarment. The Commission may, if
necessary to protect the public interest, set a longer period of
debarment or extend the existing period of debarment. If multiple
convictions or judgments have been rendered, the Commission shall
determine based on the facts before it whether debarments shall run
concurrently or consecutively.
[68 FR 36943, June 20, 2003. Redesignated and amended at 72 FR 54218,
Sept. 24, 2007]
Subpart B_Services Designated for Support
Sec. 54.101 Supported services for rural, insular and high cost areas.
(a) Services designated for support. The following services or
functionalities shall be supported by federal universal service support
mechanisms:
(1) Voice grade access to the public switched network. ``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, 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;
(2) Local usage. ``Local usage'' means an amount of minutes of use
of exchange service, prescribed by the Commission, provided free of
charge to end users;
(3) Dual tone multi-frequency signaling or its functional
equivalent. ``Dual tone multi-frequency'' (DTMF) is a method of
signaling that facilitates the transportation of signaling through the
network, shortening call set-up time;
(4) Single-party service or its functional equivalent. ``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;
(5) Access to emergency services. ``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;
[[Page 106]]
(6) Access to operator services. ``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;
(7) Access to interexchange service. ``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;
(8) Access to directory assistance. ``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
(9) Toll limitation for qualifying low-income consumers. Toll
limitation for qualifying low-income consumers is described in subpart E
of this part.
(b) Requirement to offer all designated services. 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.
(c) Additional time to complete network upgrades. A state commission
may grant the petition of a telecommunications carrier that is otherwise
eligible to receive universal service support under Sec. 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 exist with respect to each service for
which the carrier desires a grant of additional time to complete network
upgrades.
[62 FR 32948, June 17, 1997, as amended at 63 FR 2125, Jan. 13, 1998; 63
FR 33585, June 19, 1998]
Subpart C_Carriers Eligible for Universal Service Support
Sec. 54.201 Definition of eligible telecommunications carriers,
generally.
(a) Carriers eligible to receive support. (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.
(2) [Reserved]
(3) This paragraph does not apply to offset or reimbursement support
distributed pursuant to subpart G of this part.
(4) This paragraph does not apply to support distributed pursuant to
subpart F of this part.
(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.
(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
[[Page 107]]
that the designation is in the public interest.
(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:
(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
(2) Advertise the availability of such services and the charges
therefore using media of general distribution.
(e) For the purposes of this section, the term facilities 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.
(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.
(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.
(h) A state commission shall designate a common carrier that meets
the requirements of this section as an eligible telecommunications
carrier irrespective of the technology used by such carrier.
(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.
[62 FR 32948, June 17, 1997, as amended at 63 FR 2125, Jan. 13, 1998; 64
FR 62123, Nov. 16, 1999; 71 FR 65750, Nov. 9, 2006]
Sec. 54.202 Additional requirements for Commission designation of
eligible telecommunications carriers.
(a) In order to be designated an eligible telecommunications carrier
under section 214(e)(6), any common carrier in its application must:
(1) (i) Commit to provide service throughout its proposed designated
service area to all customers making a reasonable request for service.
Each applicant shall certify that it will:
(A) Provide service on a timely basis to requesting customers within
the applicant's service area where the applicant's network already
passes the potential customer's premises; and
(B) Provide service within a reasonable period of time, if the
potential customer is within the applicant's licensed service area but
outside its existing network coverage, if service can be provided at
reasonable cost by:
(1) Modifying or replacing the requesting customer's equipment;
(2) Deploying a roof-mounted antenna or other equipment;
(3) Adjusting the nearest cell tower;
(4) Adjusting network or customer facilities;
(5) Reselling services from another carrier's facilities to provide
service; or
(6) Employing, leasing or constructing an additional cell site, cell
extender, repeater, or other similar equipment.
(ii) Submit a five-year plan that describes with specificity
proposed improvements or upgrades to the applicant's network on a wire
center-by-wire center basis throughout its proposed designated service
area. Each applicant shall demonstrate how signal quality, coverage or
capacity will improve due to the receipt of high-cost support; the
projected start date and completion date for each improvement and the
estimated amount of investment for each project that is funded by high-
cost support; the specific geographic areas where the improvements
[[Page 108]]
will be made; and the estimated population that will be served as a
result of the improvements. If an applicant believes that service
improvements in a particular wire center are not needed, it must explain
its basis for this determination and demonstrate how funding will
otherwise be used to further the provision of supported services in that
area.
(2) Demonstrate its ability to remain functional in emergency
situations, including a demonstration that it has a reasonable amount of
back-up power to ensure functionality without an external power source,
is able to reroute traffic around damaged facilities, and is capable of
managing traffic spikes resulting from emergency situations.
(3) Demonstrate that it will satisfy applicable consumer protection
and service quality standards. A commitment by wireless applicants to
comply with the Cellular Telecommunications and Internet Association's
Consumer Code for Wireless Service will satisfy this requirement. Other
commitments will be considered on a case-by-case basis.
(4) Demonstrate that it offers a local usage plan comparable to the
one offered by the incumbent LEC in the service areas for which it seeks
designation.
(5) Certify that the carrier acknowledges that the Commission may
require it to provide equal access to long distance carriers in the
event that no other eligible telecommunications carrier is providing
equal access within the service area.
(b) Any common carrier that has been designated under section
214(e)(6) as an eligible telecommunications carrier or that has
submitted its application for designation under section 214(e)(6) before
the effective date of these rules must submit the information required
by paragraph (a) of this section no later than October 1, 2006, as part
of its annual reporting requirements under Sec. 54.209.
(c) Public Interest Standard. Prior to designating an eligible
telecommunications carrier pursuant to section 214(e)(6), the Commission
determines that such designation is in the public interest. In doing so,
the Commission shall consider the benefits of increased consumer choice,
and the unique advantages and disadvantages of the applicant's service
offering. In instances where an eligible telecommunications carrier
applicant seeks designation below the study area level of a rural
telephone company, the Commission shall also conduct a creamskimming
analysis that compares the population density of each wire center in
which the eligible telecommunications carrier applicant seeks
designation against that of the wire centers in the study area in which
the eligible telecommunications carrier applicant does not seek
designation. In its creamskimming analysis, the Commission shall
consider other factors, such as disaggregation of support pursuant to
Sec. 54.315 by the incumbent local exchange carrier.
(d) A common carrier seeking designation as an eligible
telecommunications carrier under section 214(e)(6) for any part of
tribal lands shall provide a copy of its petition to the affected tribal
government and tribal regulatory authority, as applicable, at the time
it files its petition with the Federal Communications Commission. In
addition, the Commission shall send the relevant public notice seeking
comment on any petition for designation as an eligible
telecommunications carrier on tribal lands, at the time it is released,
to the affected tribal government and tribal regulatory authority, as
applicable, by overnight express mail.
(e) All eligible telecommunications carriers shall retain all
records required to demonstrate to auditors that the support received
was consistent with the universal service high-cost program rules. These
records should include the following: data supporting line count
filings; historical customer records; fixed asset property accounting
records; general ledgers; invoice copies for the purchase and
maintenance of equipment; maintenance contracts for the upgrade or
equipment; and any other relevant documentation. This documentation must
be maintained for at least five years from the receipt of funding.
[70 FR 29978, May 25, 2005, as amended at 72 FR 54217, Sept. 24, 2007]
[[Page 109]]
Sec. 54.203 Designation of eligible telecommunications carriers for
unserved areas.
(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.
(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.
Sec. 54.205 Relinquishment of universal service.
(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.
(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.
Sec. 54.207 Service areas.
(a) The term service area 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.
(b) In the case of a service area served by a rural telephone
company, service area 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.
(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.
(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:
(i) The definition proposed by the state commission; and
(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
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.
(2) The Commission shall issue a Public Notice of any such petition
within fourteen (14) days of its receipt.
(3) The Commission may initiate a proceeding to consider the
petition within ninety (90) days of the release date of the Public
Notice.
(i) If the Commission initiates a proceeding to consider the
petition, the
[[Page 110]]
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.
(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.
(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.
(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:
(i) The definition proposed by the Commission; and
(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.
(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.
(e) The Commission delegates its authority under paragraphs (c) and
(d) of this section to the Chief, Wireline Competition Bureau.
[62 FR 32948, June 17, 1997, as amended at 67 FR 13226, Mar. 21, 2002]
Sec. 54.209 Annual reporting requirements for designated eligible
telecommunications carriers.
(a) A common carrier designated under section 214(e)(6) as an
eligible telecommunications carrier shall provide:
(1) A progress report on its five-year service quality improvement
plan, including maps detailing its progress towards meeting its plan
targets, an explanation of how much universal service support was
received and how it was used to improve signal quality, coverage, or
capacity, and an explanation regarding any network improvement targets
that have not been fulfilled. The information shall be submitted at the
wire center level;
(2) Detailed information on any outage, as that term is defined in
47 CFR 4.5, of at least 30 minutes in duration for each service area in
which an eligible telecommunications carrier is designated for any
facilities it owns, operates, leases, or otherwise utilizes that
potentially affect
(i) At least ten percent of the end users served in a designated
service area; or
(ii) A 911 special facility, as defined in 47 CFR 4.5(e).
(iii) Specifically, the eligible telecommunications carrier's annual
report must include information detailing:
(A) The date and time of onset of the outage;
(B) A brief description of the outage and its resolution;
(C) The particular services affected;
(D) The geographic areas affected by the outage;
(E) Steps taken to prevent a similar situation in the future; and
(F) The number of customers affected.
(3) The number of requests for service from potential customers
within the eligible telecommunications carrier's service areas that were
unfulfilled during the past year. The carrier shall also detail how it
attempted to provide service to those potential customers, as set forth
in Sec. 54.202(a)(1)(i);
(4) The number of complaints per 1,000 handsets or lines;
(5) Certification that it is complying with applicable service
quality standards and consumer protection rules;
(6) Certification that the carrier is able to function in emergency
situations as set forth in Sec. 54.201(a)(2);
[[Page 111]]
(7) Certification that the carrier is offering a local usage plan
comparable to that offered by the incumbent LEC in the relevant service
areas; and
(8) Certification that the carrier acknowledges that the Commission
may require it to provide equal access to long distance carriers in the
event that no other eligible telecommunications carrier is providing
equal access within the service area.
(b) Filing deadlines. In order for a common carrier designated under
section 214(e)(6) to continue to receive support for the following
calendar year, or retain its eligible telecommunications carrier
designation, it must submit the annual reporting information in
paragraph (a) no later than October 1, 2006, and thereafter annually by
October 1 of each year. Eligible telecommunications carriers that file
their reports after the October 1 deadline shall receive support
pursuant to the following schedule:
(1) Eligible telecommunication carriers that file no later than
January 1 of the subsequent year shall receive support for the second,
third and fourth quarters of the subsequent year.
(2) Eligible telecommunication carriers that file no later than
April 1 of the subsequent year shall receive support for the third and
fourth quarters of the subsequent year.
(3) Eligible telecommunication carriers that file no later than July
1 of the subsequent year shall receive support for the fourth quarter of
the subsequent year.
[70 FR 29978, May 25, 2005]
Subpart D_Universal Service Support for High Cost Areas
Sec. 54.301 Local switching support.
(a) Calculation of local switching support. (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.
(2) Local switching support factor. (i) The local switching support
factor shall be defined as the difference between the 1996 weighted
interstate DEM factor, calculated pursuant to Sec. 36.125(f) of this
chapter, and the 1996 unweighted interstate DEM factor.
(ii) If the number of a study area's access lines increases such
that, under Sec. 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.
(3) Beginning January 1, 1998, the sum of the unweighted interstate
DEM factor, as defined in Sec. 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.
(b) Submission of data to the Administrator. 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 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.
I
Telecommunications Plant in Account 2001
Service (TPIS).
Telecommunications Plant-- Accounts 2002, 2003, 2005
Other.
[[Page 112]]
General Support Assets....... Account 2110
Central Office Assets........ Accounts 2210, 2220, 2230
Central Office-switching, Account 2210, Category 3
Category 3 (local switching).
Information Origination/ Account 2310
termination Assets.
Cable and Wire Facilities Account 2410
Assets.
Amortizable Tangible Assets.. Account 2680
Intangibles.................. Account 2690
II
Rural Telephone Bank (RTB) Included in Account 1410
Stock.
Materials and Supplies....... Account 1220.1
Cash Working Capital......... Defined in 47 CFR 65.820(d)
III
Accumulated Depreciation..... Account 3100
Accumulated Amortization..... Included in Accounts 2005, 2680, 2690,
3410
Net Deferred Operating Income Accounts 4100, 4340
Taxes.
Network Support Expenses..... Account 6110
General Support Expenses..... Account 6120
Central Office Switching, Accounts 6210, 6220, 6230
Operator Systems, and
Central Office Transmission
Expenses.
Information Origination/ Account 6310
Termination Expenses.
Cable and Wire Facilities Account 6410
Expenses.
Other Property, Plant and Account 6510
Equipment Expenses.
Network Operations Expenses.. Account 6530
Access Expense............... Account 6540
Depreciation and Amortization Account 6560
Expense.
Marketing Expense............ Account 6610
Services Expense............. Account 6620
Corporate Operations Expense. Account 6720
Operating Taxes.............. Accounts 7230, 7240
Federal Investment Tax Account 7210
Credits.
Provision for Deferred Account 7250
Operating Income Taxes-Net.
Allowance for Funds Used Included in Account 7300
During Construction.
Charitable Contributions..... Included in Account 7300
Interest and Related Items... Account 7500
IV
Other Non-Current Assets..... Included in Account 1410
Deferred Maintenance and Included in Account 1438
Retirements.
Deferred Charges............. Included in Account 1438
Other Jurisdictional Assets Accounts 1500, 4370
and Liabilities.
Customers' Deposits.......... Account 4040
Other Long-Term Liabilities.. Included in Account 4300
(c) Allocation of accounts to switching. The Administrator shall
allocate to local switching, the accounts reported pursuant to paragraph
(b) of this section as prescribed in this paragraph.
(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:
Account 2210 Category/3 (Account 2210 + Account 2220 + Account 2230 +
Account 2310 + Account 2410).
(2) Telecommunications Plant--Other (Accounts 2002, 2003, 2005);
Rural Telephone Bank (RTB) Stock (included in Account 1410); Materials
and Supplies (Account 1220.1); Cash Working Capital (Sec. 65.820(d) of
this chapter); Accumulated Amortization (Included in Accounts 2005,
2680, 2690, 3410); Net
[[Page 113]]
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 (Included in Account 7300); Charitable Contributions
(included in Account 7300); Other Non-current Assets (Included in
Account 1410); Other Jurisdictional Assets and Liabilities (Accounts
1500, 4370); Customer Deposits (Account 4040); Other Long-term
Liabilities (Included in Account 4300); and Deferred Maintenance and
Retirements (Included in Account 1438) shall be allocated according to
the following factor:
Account 2210 Category 3 Account 2001.
(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:
Account 2210 Category 3/Account 2210.
(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:
Account 2210 Category 3 / Account 2001.
(5) Corporate Operations Expenses (Account 6720) shall be allocated
according to the following factor:
[[Account 2210 Category 3 (Account 2210 + Account 2220 + Account 2230)]]
x (Account 6210 + Account 6220 + Account 6230)] + [(Account 6530 +
Account 6610 + Account 6620) x (Account 2210 Category 3 Account 2001)]
(Account 6210 + Account 6220 + Account 6230 + Account 6310 + Account
6410 + Account 6530 + Account 6610 + Account 6620).
(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:
Account 2210 Category 3 / (Accounts 2210 + 2220 + 2230).
(d) Calculation of the projected annual unseparated local switching
revenue requirement. The Administrator shall calculate the projected
annual unseparated local switching revenue requirement by summing the
components listed in this paragraph.
(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.
(2) Depreciation expense attributable to COE Category 3 investment,
allocated pursuant to paragraph (c) of this section.
(3) All expenses, excluding depreciation expense, collected in
paragraph (b) of this section, allocated pursuant to paragraph (c) of
this section.
(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:
[Return on Investment attributable to COE Category 3--Included in
Account 7300--Account 7500-Account 7210)] x [Federal Income Tax Rate
(1--Federal Income Tax Rate)].
(e) True-up adjustment--(1) Submission of true-up data. Each
incumbent local exchange carrier that has been designated an eligible
telecommunications
[[Page 114]]
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.
(2) Calculation of true-up adjustment. (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.
(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.
(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.
(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.
(f) Calculation of the local switching revenue requirement for
average schedule companies. (1) The local switching revenue requirement
for average schedule companies, as defined in Sec. 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.
(2) The Commission delegates its authority to review, modify, and
approve the formula submitted by the Administrator pursuant to this
paragraph to the Chief, Wireline Competition Bureau.
[63 FR 2126, Jan. 13, 1998; 63 FR 33585, June 19, 1998, as amended at 67
FR 13226, Mar. 21, 2002; 67 FR 5701, Feb. 6, 2002]
Sec. 54.303 Long term support.
(a) Beginning January 1, 1998, an eligible telecommunications
carrier that participates in the association Common Line pool shall
receive Long Term Support. Beginning July 1, 2004, no carrier shall
receive Long Term Support.
(b) Long Term Support shall be calculated as prescribed in this
paragraph.
(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 Sec.
69.105(b)(2) of this chapter.
(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 Sec. 36.622 of this chapter.
(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
Sec. 36.622 of this chapter.
(4) Beginning January 1, 2000, the Administrator shall calculate
Long Term Support annually by adjusting the previous year's level of
support to reflect the annual percentage change in the
[[Page 115]]
Department of Commerce's Gross Domestic Product-Chained Price Index
(GDP-CPI).
(5)(i) Beginning July 1, 2002, each carrier will be eligible to
receive LTS equal to the lesser of:
(A) The LTS for which the carrier would be eligible pursuant to
paragraph (b)(4) of this section, or
(B) Its common line revenue requirement as calculated in accordance
with part 69 of this chapter, minus:
(1) The study area revenues obtained from end-user common line
charges at their allowable maximum as determined by Sec. Sec. 69.104(n)
and 69.104(o) of this chapter;
(2) The carrier common line charge revenues to be phased out
pursuant to Sec. 69.105 of this chapter;
(3) The special access surcharges pursuant to Sec. 69.114 of this
chapter; and
(4) The line port costs in excess of basic analog service pursuant
to Sec. 69.130 of this chapter.
(ii) Under no circumstance shall a carrier have LTS that is less
than zero.
(iii) In calculating an LTS amount pursuant to paragraph
(b)(5)(i)(B) of this section, the Administrator shall use data filed
pursuant to Sec. 54.903 of this chapter.
[63 FR 2128, Jan. 13, 1998; 63 FR 33586, June 19, 1998, as amended at 67
FR 42506, June 24, 2002; 67 FR 70702, Nov. 26, 2002; 69 FR 25336, May 6,
2004]
Sec. 54.305 Sale or transfer of exchanges.
(a) The provisions of this section are not applicable to the sale or
transfer of exchanges between non-rural carriers after the complete
phase-down of interim hold-harmless support, pursuant to Sec. 54.311,
for the non-rural carriers subject to the transaction.
(b) Except as provided in paragraph (c) of this section, 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. If the acquired exchanges are
incorporated into an existing rural incumbent local exchange carrier
study area, the rural incumbent local exchange carrier shall maintain
the costs associated with the acquired exchanges separate from the costs
associated with its pre-acquisition study area. The transferred
exchanges may be eligible for safety valve support for loop related
costs pursuant to paragraph (d) of this section.
(c) A carrier that has entered into a binding agreement to buy or
acquire exchanges from an unaffiliated carrier prior to May 7, 1997 will
receive universal service 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.
(d) Transferred exchanges in study areas operated by rural telephone
companies that are subject to the limitations on loop-related universal
service support in paragraph (b) of this section may be eligible for a
safety valve loop cost expense adjustment based on the difference
between the rural incumbent local exchange carrier's index year expense
adjustment and subsequent year loop cost expense adjustments for the
acquired exchanges. Safety valve loop cost expense adjustments shall
only be available to rural incumbent local exchange carriers that, in
the absence of restrictions on high-cost loop support in Sec.
54.305(b), would qualify for high-cost loop support for the acquired
exchanges under Sec. 36.631 of this chapter.
(1) For carriers that buy or acquire telephone exchanges on or after
January 10, 2005 from an unaffiliated carrier, the index year expense
adjustment for the acquiring carrier's first year of operation shall
equal the selling carrier's loop-related expense adjustment for the
transferred exchanges for the 12-month period prior to the transfer of
the exchanges. At the acquiring carrier's option, the first year of
operation for the transferred exchanges, for purposes of calculating
safety valve support, shall commence at the beginning of either the
first calendar year or the next calendar quarter following the transfer
of exchanges. For the first year of operation, a loop cost expense
adjustment, using the costs of the acquired exchanges submitted in
accordance with Sec. Sec. 36.611 and 36.612 of this chapter, shall be
calculated pursuant to Sec. 36.631 of this chapter and then compared to
the index year expense adjustment. Safety valve support for the first
[[Page 116]]
period of operation will then be calculated pursuant to paragraph (d)(3)
of this section. The index year expense adjustment for years after the
first year of operation shall be determined using cost data for the
first year of operation of the transferred exchanges. Such cost data for
the first year of operation shall be calculated in accordance with
Sec. Sec. 36.611, 36.612 and 36.631 of this chapter. For each year,
ending on the same calendar quarter as the first year of operation, a
loop cost expense adjustment, using the loop costs of the acquired
exchanges, shall be submitted and calculated pursuant to Sec. Sec.
36.611, 36.612, and 36.631 of this chapter and will be compared to the
index year expense adjustment. Safety valve support for the second year
of operation and thereafter will then be calculated pursuant to
paragraph (d)(3) of this section.
(2) For carriers that bought or acquired exchanges from an
unaffiliated carrier before January 10, 2005, and are not subject to the
exception in paragraph (c) of this section, the index year expense
adjustment for acquired exchange(s) shall be equal to the rural
incumbent local exchange carrier's high-cost loop expense adjustment for
the acquired exchanges calculated for the carrier's first year of
operation of the acquired exchange(s). At the carrier's option, the
first year of operation of the transferred exchanges shall commence at
the beginning of either the first calendar year or the next calendar
quarter following the transfer of exchanges. The index year expense
adjustment shall be determined using cost data for the acquired
exchange(s) submitted in accordance with Sec. Sec. 36.611 and 36.612 of
this chapter and shall be calculated in accordance with Sec. 36.631 of
this chapter. The index year expense adjustment for rural telephone
companies that have operated exchanges subject to this section for more
than a full year on the effective date of this paragraph shall be based
on loop cost data submitted in accordance with Sec. 36.612 of this
chapter for the year ending on the nearest calendar quarter following
the effective date of this paragraph. For each subsequent year, ending
on the same calendar quarter as the index year, a loop cost expense
adjustment, using the costs of the acquired exchanges, will be
calculated pursuant to Sec. 36.631 of this chapter and will be compared
to the index year expense adjustment. Safety valve support is calculated
pursuant to paragraph (d)(3) of this section.
(3) Up to fifty (50) percent of any positive difference between the
transferred exchanges loop cost expense adjustment and the index year
expense adjustment will be designated as the transferred exchange's
safety valve loop cost expense adjustment and will be available in
addition to the per-line loop-related support transferred from the
selling carrier to the acquiring carrier pursuant to Sec. 54.305(b). In
no event shall a study area's safety valve loop cost expense adjustment
exceed the difference between the carrier's study area loop cost expense
adjustment calculated pursuant to Sec. 36.631 of this chapter and
transferred support amounts available to the acquired exchange(s) under
paragraph (b) of this section. Safety valve support shall not transfer
with acquired exchanges.
(e) The sum of the safety valve loop cost expense adjustment for all
eligible study areas operated by rural telephone companies shall not
exceed five (5) percent of the total rural incumbent local exchange
carrier portion of the annual nationwide loop cost expense adjustment
calculated pursuant to Sec. 36.603 of this chapter. The five (5)
percent cap on the safety valve mechanism shall be based on the lesser
of the rural incumbent local exchange carrier portion of the annual
nationwide loop cost expense adjustment calculated pursuant to Sec.
36.603 of this chapter or the sum of rural incumbent local exchange
carrier expense adjustments calculated pursuant to Sec. 36.631 of this
chapter. The percentage multiplier used to derive study area safety
valve loop cost expense adjustments for rural telephone companies shall
be the lesser of fifty (50) percent or a percentage calculated to
produce the maximum total safety valve loop cost expense adjustment for
all eligible study areas pursuant to this paragraph. The safety valve
[[Page 117]]
loop cost expense adjustment of an individual rural incumbent local
exchange carrier also may be further reduced as described in paragraph
(d)(3) of this section.
(f) Once an acquisition is complete, the acquiring rural incumbent
local exchange carrier shall provide written notice to the Administrator
that it has acquired access lines that may be eligible for safety valve
support. Rural telephone companies also shall provide written notice to
the Administrator defining their index year for those years after the
first year of operation for purposes of calculating the safety valve
loop cost expense adjustment.
[70 FR 10060, Mar. 2, 2005]
Sec. 54.307 Support to a competitive eligible telecommunications
carrier.
(a) Calculation of support. 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.
(1) A competitive eligible telecommunications carrier serving loops
in the service area of a rural incumbent local exchange carrier, as that
term is defined in Sec. 54.5 of this chapter, shall receive support for
each line it serves in a particular service area based on the support
the incumbent LEC would receive for each such line, disaggregated by
cost zone if disaggregation zones have been established within the
service area pursuant to Sec. 54.315 of this subpart. A competitive
eligible telecommunications carrier serving loops in the service area of
a non-rural incumbent local exchange 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. A competitive eligible
telecommunications carrier serving loops in the service area of a rate-
of-return carrier shall be eligible to receive Interstate Common Line
Support for each line it serves in the service area in accordance with
the formula in Sec. 54.901.
(2) A competitive eligible telecommunications carrier that uses
switching purchased as unbundled network elements pursuant to Sec.
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 Sec. 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, LTS, and Interstate Common Line
Support mechanisms, 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.
(3) A competitive eligible telecommunications carrier that provides
the supported services using neither unbundled network elements
purchased pursuant to Sec. 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.
(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 incumbent local exchange carrier, as that term
is defined in Sec. 54.5, the carrier must report, by customer class,
the number of working loops it serves in the service area, disaggregated
by cost zone if disaggregation zones have been established within the
service area pursuant to Sec. 54.315. For a competitive eligible
telecommunications carrier serving loops in the service area of a non-
rural telephone company, the carrier
[[Page 118]]
must report the number of working loops it serves in the service area,
by customer class if the non-rural telephone company receives Interstate
Common Line Support pursuant to Sec. 54.901 and by disaggregation zone
if disaggregation zones have been established within the service area
pursuant to Sec. 54.315 of this subpart, and the number of working
loops it serves in each wire center in the 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. Competitive eligible telecommunications carriers
providing mobile wireless service in an incumbent LEC's service area
shall use the customer's billing address for purposes of identifying the
service location of a mobile wireless customer in a service area.
(c) A competitive eligible telecommunications carrier must submit
the data required pursuant to paragraph (b) of this section according to
the schedule.
(1) No later than July 31st of each year, submit data as of December
31st of the previous calendar year;
(2) No later than September 30th of each year, submit data as of
March 31st of the existing calendar year;
(3) No later than December 30th of each year, submit data as of June
30th of the existing calendar year;
(4) No later than March 30th of each year, submit data as of
September 30th of the previous calendar year.
(d) Newly designated eligible telecommunications carriers.
Notwithstanding the deadlines in paragraph (c) of this section, a
carrier shall be eligible to receive support as of the effective date of
its designation as an eligible telecommunications carrier under section
214(e)(2) or (e)(6), provided that it submits the data required pursuant
to paragraph (b) of this section within 60 days of that effective date.
Thereafter, the eligible telecommunications carrier must submit the data
required in paragraph (b) of this section pursuant to the schedule in
paragraph (c) of this section.
[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; 66 FR 30087, June 5,
2001; 66 FR 59726, Nov. 30, 2001; 68 FR 31623, May 28, 2003; 69 FR
34602, June 22, 2004; 70 FR 29979, May 25, 2005]
Sec. 54.309 Calculation and distribution of forward-looking support
for non-rural carriers.
(a) Calculation of total support available per state. 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 Sec. 54.313. The total amount of forward-
looking support available in each State shall be determined according to
the following methodology:
(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.
(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.
(3) The national cost benchmark shall equal two weighted standard
deviations above the national average FLEC per line.
[[Page 119]]
(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 Sec. 36.611, Sec. 36.612, and Sec. 54.307 of this
chapter.
(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 Sec. 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 State pursuant to this section is less than the amount
that would be provided pursuant to Sec. 54.311, the carrier shall be
eligible for support pursuant to Sec. 54.311.
(b) Distribution of total support available per state. 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:
(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;
(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;
(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 Sec. 36.611, Sec. 36.612, and
Sec. 54.307 of this chapter to determine the per-line amount of
forward-looking support for that wire center;
(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 Sec. 36.611, Sec. 36.612, and Sec.
54.307 of this chapter, to determine the amount of forward-looking
support to be provided to that carrier.
(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;
(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.
(c) Petition for waiver. 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.
[64 FR 67431, Dec. 1, 1999, as amended at 65 FR 26516, May 8, 2000; 68
FR 69626, Dec. 15, 2003]
[[Page 120]]
Sec. 54.311 Interim hold-harmless support for non-rural carriers.
(a) Interim hold-harmless support. 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 Sec.
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 Sec. 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, Sec.
54.303. In the event that a State's statewide average FLEC per line,
calculated pursuant to Sec. 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 Sec.
54.309(b) is less than the amount that would be provided pursuant to
part 36 and, if applicable, Sec. 54.303, the carrier shall be eligible
for support pursuant to part 36 and, if applicable, Sec. 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.
(b) Distribution of Interim Hold-Harmless Support Amounts. Until the
third quarter of 2000, interim hold-harmless support shall be
distributed pursuant to part 36 and, if applicable, Sec. 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.
(c) Petition for waiver. 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.
(d) Phase down of interim hold-harmless support. Beginning January
1, 2001, the interim hold-harmless support for which a non-rural
incumbent local exchange carrier qualifies under paragraph (a) of this
section, excluding Long Term Support, shall be phased down through
annual $1.00 reductions in average monthly, per-line support. Applicable
annual reductions shall be subtracted from the total amount of interim
hold-harmless support that a non-rural incumbent local exchange carrier
otherwise would be eligible to receive on an ongoing, quarterly basis.
The provisions of paragraph (b) of this section shall apply to the total
amount of phased-down interim hold-harmless support provided to each
non-rural incumbent local exchange carrier.
(1) Interim hold-harmless support for a wire center transferred to a
carrier that does not meet the definition of rural telephone company in
Sec. 51.5 of this chapter shall be phased down following the transfer
over the same time
[[Page 121]]
period as the seller's support would have been phased down, by an equal
percentage for each year of the phase-down period.
(2) Interim hold-harmless support for a wire center transferred to a
carrier that meets the definition of rural telephone company in Sec.
51.5 of this chapter shall remain frozen at the per-line support level
as of the sale date.
[64 FR 67432, Dec. 1, 1999, as amended at 64 FR 73428, Dec. 30, 1999; 65
FR 78992, Dec. 18, 2000]
Sec. 54.313 State certification of support for non-rural carriers.
(a) Certification. 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
Sec. Sec. 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
Sec. Sec. 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.
(b) Carriers not subject to State jurisdiction. A non-rural
incumbent local exchange carrier not subject to the jurisdiction of a
state or an eligible telecommunications carrier not subject to the
jurisdiction of a state serving lines in the service area of a non-rural
incumbent local exchange carrier that desires to receive support
pursuant to Sec. Sec. 54.309 and/or 54.311 of this subpart must file an
annual certification with the Administrator and the Commission stating
that all federal high-cost support provided to such carriers will be
used only for the provision, maintenance, and upgrading of facilities
and services for which the support is intended. Support provided
pursuant to Sec. Sec. 54.309 and/or 54.311 of this subpart shall only
be provided to the extent that the carrier has filed the requisite
certification pursuant to this section.
(c) Certification format. 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 (d) of this
section. If provided by the appropriate regulatory authority for the
state, 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 support
for the provision, maintenance, and upgrading of facilities and services
for which support is intended. A State may file a supplemental
certification for carriers not subject to the State's annual
certification. All certificates filed by a State pursuant to this
section shall become part of the public record maintained by the
Commission. Non-rural incumbent local exchange carriers not subject to
the jurisdiction of a state or eligible telecommunications carrier not
subject to the jurisdiction of a state serving lines in the service area
of a non-rural incumbent local exchange carrier, shall file a sworn
affidavit executed by a corporate officer attesting to the use of the
support for the provision, maintenance, and upgrading of facilities and
services for which support is intended. The affidavit 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 (d) of this section. All affidavits filed pursuant to
this section shall become part of the public record maintained by the
Commission.
(d) Filing deadlines. 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
[[Page 122]]
(c) of this section, with both the Administrator and the Commission.
Support shall be provided in accordance with the following schedule:
(1) [Reserved]
(2) [Reserved]
(3) Subsequent program years (January 1-December 31). During the
program years subsequent to the second program year (January 1, 2001-
December 31, 2001), a carrier in a particular State shall not receive
support pursuant to Sec. 54.309 or Sec. 54.311 until such time as the
State files the certification described in this section. Upon the filing
of the certification described in this section, support shall be
provided pursuant to the following schedule:
(i) Certifications filed on or before October 1. Carriers subject to
certifications filed on or before October 1 shall receive support
pursuant to Sec. 54.309 or Sec. 54.311, whichever is applicable, in
the first, second, third, and fourth quarters of the succeeding year.
(ii) Certifications filed on or before January 1. Carriers subject
to certifications filed on or before January 1 shall receive support
pursuant to Sec. 54.309 or Sec. 54.311, whichever is applicable, in
the second, third, and fourth quarters of that year. Such carriers shall
not receive support pursuant to Sec. 54.309 or Sec. 54.311, whichever
is applicable, in the first quarter of that year.
(iii) Certifications filed on or before April 1. Carriers subject to
certifications filed on or before April 1 shall receive support pursuant
to Sec. 54.309 or Sec. 54.311, whichever is applicable, in the third
and fourth quarters of that year. Such carriers shall not receive
support pursuant to Sec. 54.309 or Sec. 54.311, whichever is
applicable, in the first or second quarters of that year.
(iv) Certifications filed on or before July 1. Carriers subject to
certifications filed on or before July 1 shall receive support pursuant
to Sec. 54.309 or Sec. 54.311, whichever is applicable, beginning in
the fourth quarter of that year. Such carriers shall not receive support
pursuant to Sec. 54.309 or Sec. 54.311, whichever is applicable, in
the first, second, or third quarters of that year.
(v) Certifications filed after July 1. Carriers subject to
certifications filed after July 1 shall not receive support pursuant to
Sec. 54.309 or Sec. 54.311, whichever is applicable, in that year.
(vi) Newly designated eligible telecommunications carriers.
Notwithstanding the deadlines in paragraph (d) of this section, a
carrier shall be eligible to receive support pursuant to Sec. 54.309 or
Sec. 54.311, whichever is applicable, as of the effective date of its
designation as an eligible telecommunications carrier under section
214(e)(2) or (e)(6), provided that it files the certification described
in paragraph (b) of this section or the state commission files the
certification described in paragraph (a) of this section within 60 days
of the effective date of the carrier's designation as an eligible
telecommunications carrier. Thereafter, the certification required by
paragraphs (a) or (b) of this section must be submitted pursuant to the
schedule in paragraph (d) of this section.
[64 FR 67432, Dec. 1, 1999, as amended at 64 FR 73428, Dec. 30, 1999; 66
FR 30088, June 5, 2001; 67 FR 13094, Mar. 21, 2002; 70 FR 29979, May 25,
2005; 71 FR 65750, Nov. 9, 2006]
Sec. 54.314 State certification of support for rural carriers.
(a) State certification. States that desire rural incumbent local
exchange carriers and/or eligible telecommunications carriers serving
lines in the service area of a rural incumbent local exchange carrier
within their jurisdiction to receive support pursuant to Sec. Sec.
54.301, 54.305, and/or 54.307 and/or part 36, subpart F of this chapter
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 Sec. Sec. 54.301,
54.305, and/or 54.307 and/or part 36, subpart F of this chapter shall
only be provided to the extent that the State has filed the requisite
certification pursuant to this section.
(b) Carriers not subject to State jurisdiction. A rural incumbent
local exchange carrier not subject to the jurisdiction of a state or an
eligible telecommunications carrier not subject to the jurisdiction of a
state serving lines in the service area of a rural incumbent local
[[Page 123]]
exchange carrier that desires to receive support pursuant to Sec. Sec.
54.301, 54.305, and/or 54.307 and/or part 36, subpart F of this chapter
shall file an annual certification with the Administrator and the
Commission stating that all federal high-cost support provided to such
carriers will be used only for the provision, maintenance, and upgrading
of facilities and services for which the support is intended. Support
provided pursuant to Sec. Sec. 54.301, 54.305, and/or 54.307 and/or
part 36, subpart F of this chapter shall only be provided to the extent
that the carrier has filed the requisite certification pursuant to this
section.
(c) Certification format. A certification pursuant to this section
may be filed in the form of a letter from the appropriate regulatory
authority for the State, and shall 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 (d) of this
section. If provided by the appropriate regulatory authority for the
state, 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 support
for the provision, maintenance, and upgrading of facilities and services
for which support is intended. A State may file a supplemental
certification for carriers not subject to the State's annual
certification. All certificates filed by a State pursuant to this
section shall become part of the public record maintained by the
Commission. Rural incumbent local exchange carriers not subject to the
jurisdiction of a state or eligible telecommunications carriers not
subject to the jurisdiction of a state serving lines in the service area
of a rural incumbent local exchange carrier, shall file a sworn
affidavit executed by a corporate officer attesting to the use of the
support for the provision, maintenance, and upgrading of facilities and
services for which support is intended. The affidavit 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 (d) of this section. All affidavits filed pursuant to
this section shall become part of the public record maintained by the
Commission.
(d) Filing deadlines. Upon the filing of the certification described
in paragraph (c) of this section, support shall be provided pursuant to
the following schedule:
(1) Certifications filed on or before October 1. Carriers for which
certifications are filed on or before October 1 shall receive support
pursuant to Sec. Sec. 54.301, 54.305, and/or 54.307 and/or part 36,
subpart F of this chapter, in the first, second, third, and fourth
quarters of the succeeding year.
(2) Certifications filed on or before January 1. Carriers for which
certifications are filed on or before January 1 shall receive support
pursuant to Sec. Sec. 54.301, 54.305, and/or 54.307 and/or part 36,
subpart F of this chapter, in the second, third, and fourth quarters of
that year. Such carriers shall not receive support pursuant to
Sec. Sec. 54.301, 54.305, and/or 54.307 and/or part 36, subpart F of
this chapter in the first quarter of that year.
(3) Certifications filed on or before April 1. Carriers for which
certifications are filed on or before April 1 shall receive support
pursuant to Sec. Sec. 54.301, 54.305, and/or 54.307 and/or part 36,
subpart F of this chapter, in the third and fourth quarters of that
year. Such carriers shall not receive support pursuant to Sec. Sec.
54.301, 54.305, and/or 54.307 and/or part 36, subpart F of this chapter
in the first and second quarters of that year.
(4) Certifications filed on or before July 1. Carriers for which
certifications are filed on or before July 1 shall receive support
pursuant to Sec. Sec. 54.301, 54.305, and/or 54.307 and/or part 36,
subpart F of this chapter, in the fourth quarter of that year. Such
carriers shall not receive support pursuant to Sec. Sec. 54.301,
54.305, and/or 54.307 and/or part 36, subpart F of this chapter in the
first, second, or third quarters of that year.
(5) Certifications filed after July 1. Carriers for which
certifications are filed after July 1 shall not receive support pursuant
to Sec. Sec. 54.301, 54.305, and/or
[[Page 124]]
54.307 and/or part 36, subpart F of this chapter, in that year.
(6) Newly designated eligible telecommunications carriers.
Notwithstanding the deadlines in paragraph (d) of this section, a
carrier shall be eligible to receive support pursuant to Sec. Sec.
54.301, 54.305, or Sec. 54.307 or part 36 subpart F of this chapter,
whichever is applicable, as of the effective date of its designation as
an eligible telecommunications carrier under section 214(e)(2) or
(e)(6), provided that it files the certification described in paragraph
(b) of this section or the state commission files the certification
described in paragraph (a) of this section within 60 days of the
effective date of the carrier's designation as an eligible
telecommunications carrier. Thereafter, the certification required by
paragraphs (a) or (b) of this section must be submitted pursuant to the
schedule in paragraph (d) of this section.
[66 FR 30088, June 5, 2001, as amended at 70 FR 29979, May 25, 2005]
Sec. 54.315 Disaggregation and targeting of high-cost support.
(a) On or before May 15, 2002, all rural incumbent local exchange
carriers and rate-of-return carriers for which high-cost universal
service support pursuant to Sec. Sec. 54.301, 54.303, and/or 54.305 of
this subpart, subpart K of this part, and/or part 36 subpart F is
available must select a disaggregation path as described in paragraphs
(b), (c), or (d) of this section. In study areas in which a competitive
carrier was designated as a competitive eligible telecommunications
carrier prior to June 19, 2001, the rural incumbent local exchange
carrier or rate-of-return carrier may only disaggregate support pursuant
to paragraphs (b), (c), or (d)(1)(iii) of this section. A rural
incumbent local exchange carrier or rate-of-return carrier failing to
select a disaggregation path as described in paragraphs (b), (c), or (d)
of this section by May 15, 2002, will not be permitted to disaggregate
and target federal high-cost support unless ordered to do so by a state
commission as that term is defined in Sec. 54.5.
(b) Path 1: Carriers Not Disaggregating and Targeting High-Cost
Support:
(1) A carrier may certify to the state commission that it will not
disaggregate and target high-cost universal service support.
(2) A carrier's election of this path becomes effective upon
certification by the carrier to the state commission.
(3) This path shall remain in place for such carrier for at least
four years from the date of certification to the state commission except
as provided in paragraph (b)(4) of this section.
(4) A state commission may require, on its own motion, upon petition
by an interested party, or upon petition by the rural incumbent local
exchange carrier or rate-of-return carrier, the disaggregation and
targeting of support under paragraphs (c) or (d) of this section.
(5) A carrier not subject to the jurisdiction of a state, e.g.,
certain tribally owned carriers, may select Path 1, but must certify to
the Federal Communications Commission as described in paragraphs (1)
through (4) of this section.
(c) Path 2: Carriers Seeking Prior Regulatory Approval for the
Disaggregation and Targeting of Support:
(1) A carrier electing to disaggregate and target support under this
paragraph must file a disaggregation and targeting plan with the state
commission.
(2) Under this paragraph a carrier may propose any method of
disaggregation and targeting of support consistent with the general
requirements detailed in paragraph (e) of this section.
(3) A disaggregation and targeting plan under this paragraph becomes
effective upon approval by the state commission.
(4) A carrier shall disaggregate and target support under this path
for at least four years from the date of approval by the state
commission except as provided in paragraph (c)(5) of this section.
(5) A state commission may require, on its own motion, upon petition
by an interested party, or upon petition by the rural incumbent local
exchange carrier or rate-of-return carrier, the disaggregation and
targeting of support in a different manner.
[[Page 125]]
(6) A carrier not subject to the jurisdiction of a state, e.g.,
certain tribally owned carriers, may select Path 2, but must seek
approval from the Federal Communications Commission as described in
paragraphs (c)(1) through (5) of this section.
(d) Path 3: Self-Certification of the Disaggregation and Targeting
of Support:
(1) A carrier may file a disaggregation and targeting plan with the
state commission along with a statement certifying each of the
following:
(i) It has disaggregated support to the wire center level; or
(ii) It has disaggregated support into no more than two cost zones
per wire center; or
(iii) That the carrier's disaggregation plan complies with a prior
regulatory determination made by the state commission.
(2) Any disaggregation plan submitted pursuant to this paragraph
must meet the following requirements:
(i) The plan must be supported by a description of the rationale
used, including the methods and data relied upon to develop the
disaggregation zones, and a discussion of how the plan complies with the
requirements of this paragraph. Such filing must provide information
sufficient for interested parties to make a meaningful analysis of how
the carrier derived its disaggregation plan.
(ii) The plan must be reasonably related to the cost of providing
service for each disaggregation zone within each disaggregated category
of support.
(iii) The plan must clearly specify the per-line level of support
for each category of high-cost universal service support provided
pursuant to Sec. Sec. 54.301, 54.303, and/or 54.305 and/or part 36,
subpart F of this chapter in each disaggregation zone.
(iv) If the plan uses a benchmark, the carrier must provide detailed
information explaining what the benchmark is and how it was determined.
The benchmark must be generally consistent with how the total study area
level of support for each category of costs is derived to enable a
competitive eligible telecommunications carrier to compare the
disaggregated costs used to determine support for each cost zone.
(3) A carrier's election of this path becomes effective upon
certification by the carrier to the state commission.
(4) A carrier shall disaggregate and target support under this path
for at least four years from the date of certification to the state
commission except as provided in paragraph (d)(5) of this section.
(5) A state commission may require, on its own motion, upon petition
by an interested party, or upon petition by the rural incumbent local
exchange carrier, modification to the disaggregation and targeting of
support selected under this path.
(6) A carrier not subject to the jurisdiction of a state, e.g.,
certain tribally owned carriers, may select Path 3, but must certify to
the Federal Communications Commission as described in paragraphs (d)(1)
through (5) of this section.
(e) Additional Procedures Governing the Operation of Path 2 and Path
3: Disaggregation and targeting plan adopted under paragraphs (c) or (d)
of this section shall be subject to the following general requirements:
(1) Support available to the carrier's study area under its
disaggregation plan shall equal the total support available to the study
area without disaggregation.
(2) The ratio of per-line support between disaggregation zones for
each disaggregated category of support shall remain fixed over time,
except as changes are allowed pursuant to paragraph (c) and (d) of this
section.
(3) The ratio of per-line support shall be publicly available.
(4) Per-line support amounts for each disaggregation zone shall be
recalculated whenever the carrier's total annual support amount changes
using the changed support amount and lines at that point in time.
(5) Per-line support for each category of support in each
disaggregation zone shall be determined such that the ratio of support
between disaggregation zones is maintained and that the product of all
of the carrier's lines for each disaggregation zone multiplied by the
per-line support for those zones when
[[Page 126]]
added together equals the sum of the carrier's total support.
(6) Until a competitive eligible telecommunications carrier is
certified in a study area, monthly payments to the incumbent carrier
will be made based on total annual amounts for its study area divided by
12.
(7) When a competitive eligible telecommunications carrier is
certified in a study area, per-line amounts used to determine the
competitive eligible telecommunications carrier's disaggregated support
shall be based on the incumbent carrier's then-current total support
levels, lines, disaggregated support relationships, and, in the case of
support calculated under subpart K of this part, customer classes.
(f) Submission of Information to the Administrator:
(1) A carrier certifying under paragraph (b) of this section that it
will not disaggregate and target high-cost universal service support
shall submit to the Administrator a copy of the certification submitted
to the state commission, or the Federal Communications Commission, when
not subject to state jurisdiction.
(2) A carrier electing to disaggregate and target support under
paragraph (c) of this section shall submit to the Administrator a copy
of the order approving the disaggregation and targeting plan submitted
by the carrier to the state commission, or the Federal Communications
Commission, when not subject to state jurisdiction, and a copy of the
disaggregation and targeting plan approved by the state commission or
the Federal Communications Commission.
(3) A carrier electing to disaggregate and target support under
paragraph (d) of this section shall submit to the Administrator a copy
of the self-certification plan including the information submitted to
the state commission pursuant to paragraphs (d)(2)(i) and (d)(2)(iv) of
this section or the Federal Communications Commission.
(4) A carrier electing to disaggregate and target support under
paragraph (c) or (d) of this section must submit to the Administrator
maps which precisely identify the boundaries of the designated
disaggregation zones of support within the carrier's study area.
[66 FR 30089, June 5, 2001, as amended at 66 FR 59727, Nov. 30, 2001]
Sec. 54.316 Rate comparability review and certification for areas
served by non-rural carriers.
(a) Certification. Each state will be required annually to review
the comparability of residential rates in rural areas of the state
served by non-rural incumbent local exchange carriers to urban rates
nationwide, and to certify to the Commission and the Administrator as to
whether the rates are reasonably comparable, for purposes of section
254(b)(3) of the Telecommunications Act of 1996. If a state does not
rely on the safe harbor described in paragraph (b) of this section, or
certifies that the rates are not reasonably comparable, the state must
fully explain its rate comparability analysis and provide data
supporting its certification, including but not limited to residential
rate data for rural areas within the state served by non-rural incumbent
local exchange carriers. If a state certifies that the rates are not
reasonably comparable, it must also explain why the rates are not
reasonably comparable and explain what action it intends to take to
achieve rate comparability.
(b) Safe harbor. For the purposes of its certification, a state may
presume that the residential rates in rural areas served by non-rural
incumbent local exchange carriers are reasonably comparable to urban
rates nationwide if the rates are below the nationwide urban rate
benchmark. The nationwide urban rate benchmark shall equal the most
recent average urban rate plus two weighted standard deviations. The
benchmark shall be calculated using the average urban rate and standard
deviation shown in the most recent annual Reference Book of Rates, Price
Indices, and Expenditures for Telephone Service published by the
Wireline Competition Bureau. To the extent that a state relies on the
safe harbor, the rates that it compares to the nationwide urban rate
benchmark shall include the access charges and other mandatory
[[Page 127]]
monthly rates included in the rate survey published in the most recent
annual Reference Book of Rates, Price Indices, and Expenditures for
Telephone Service. The Reference Book of Rates, Price Indices, and
Expenditures for Telephone Service is available for public inspection at
the Commission's Reference Center at 445 12th Street, S.W., Washington,
D.C. 20554 and on the Commission Web site at www.fcc.gov/wcb/iatd/
lec.html.
(c) Definition of ``rural area.'' For the purposes of this section,
a ``rural area'' is a non-metropolitan 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. At
a state's discretion, a ``rural area'' may also include any wire center
designated by the state as rural for the purposes of this section. In
the event that a state designates a wire center as rural, it must
provide an explanation supporting such designation in its certification
pursuant to paragraph (a) of this section.
(d) Schedule for certification. Annual certifications are required
on the schedule set forth in Sec. 54.313(d)(3), beginning October 1,
2004. Certifications due on October 1 of each year shall pertain to
rates as of the prior July 1. Certifications filed during the remainder
of the schedule set forth in Sec. 54.313(d)(3) shall pertain to the
same date as if they had been filed on October 1.
(e) Effect of failure to certify. In the event that a state fails to
certify, no eligible telecommunications carrier in the state shall
receive support pursuant to Sec. 54.309.
[68 FR 69626, Dec. 15, 2003]
Subpart E_Universal Service Support for Low-Income Consumers
Sec. 54.400 Terms and definitions.
As used in this subpart, the following terms shall be defined as
follows:
(a) Qualifying low-income consumer. A ``qualifying low-income
consumer'' is a consumer who meets the qualifications for Lifeline, as
specified in Sec. 54.409.
(b) Toll blocking. ``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.
(c) Toll control. ``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.
(d) Toll limitation. ``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.
(e) Eligible resident of Tribal lands. 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. A
``reservation'' is defined as any federally recognized Indian tribe's
reservation, pueblo, or colony, including former reservations in
Oklahoma, Alaska Native regions established pursuant to the Alaska
Native Claims Settlement Act (85 Stat. 688), and Indian allotments.
``Near reservation'' is defined as those areas or communities adjacent
or contiguous to reservations which are designated by the Department of
Interior's Commission of Indian Affairs upon recommendation of the local
Bureau of Indian Affairs Superintendent, which recommendation shall be
based upon consultation with the tribal governing body of those
reservations, as locales appropriate for the extension of financial
assistance and/or social services, on the basis of such general criteria
as: Number of Indian people native to the reservation residing in the
area; a written designation by the tribal governing body that members of
their tribe and family members who are Indian residing in the area, are
socially, culturally and economically affiliated with their tribe and
reservation; geographical proximity of the area to the reservation, and
administrative feasibility of providing an adequate level of services to
the area.
Note to paragraph (e): The Commission stayed implementation of
paragraph (e) as
[[Page 128]]
applied to qualifying low-income consumers living ``near reservations''
on August 31, 2000 (15 FCC Rcd 17112).
(f) Income. ``Income'' is all income actually received by all
members of the household. This includes salary before deductions for
taxes, public assistance benefits, social security payments, pensions,
unemployment compensation, veteran's benefits, inheritances, alimony,
child support payments, worker's compensation benefits, gifts, lottery
winnings, and the like. The only exceptions are student financial aid,
military housing and cost-of-living allowances, irregular income from
occasional small jobs such as baby-sitting or lawn mowing, and the like.
[62 FR 32952, June 17, 1997, as amended at 63 FR 2128, Jan. 13, 1998; 65
FR 47905, Aug. 4, 2000; 65 FR 58663, Oct. 2, 2000; 68 FR 41941, July 16,
2003; 69 FR 34600, June 22, 2004]
Sec. 54.401 Lifeline defined.
(a) As used in this subpart, Lifeline means a retail local service
offering:
(1) That is available only to qualifying low-income consumers;
(2) For which qualifying low-income consumers pay reduced charges as
a result of application of the Lifeline support amount described in
Sec. 54.403; and
(3) That includes the services or functionalities enumerated in
Sec. 54.101 (a)(1) through (a)(9). The carriers shall offer toll
limitation to all qualifying 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.
(b) [Reserved
(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 limitation service from the
carrier, where available. If toll limitation services are unavailable,
the carrier may charge a service deposit.
(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.
(e) Consistent with Sec. 52.33(a)(1)(i)(C), eligible
telecommunications carriers may not charge Lifeline customers a monthly
number-portability charge.
[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; 69 FR 34600, June 22,
2004]
Sec. 54.403 Lifeline support amount.
(a) The Federal Lifeline support amount for all eligible
telecommunications carriers shall equal:
(1) Tier One. 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 Sec. 69.104 or
Sec. Sec. 69.152(d)(1) and 69.152(q) of this chapter, whichever is
applicable;
(2) Tier Two. 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.
(3) Tier Three. 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
[[Page 129]]
and that it has received any non-federal regulatory approvals necessary
to implement the required rate reduction.
(4) Tier Four. Additional federal Lifeline support of up to $25 per
month will be made available to an eligible telecommunications carrier
providing Lifeline service to an eligible resident of Tribal lands, as
defined in Sec. 54.400(e), to the extent that:
(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
(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.
(b) For a qualifying low-income consumer who is not an eligible
resident of Tribal lands, as defined in Sec. 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 Sec. 69.104 or Sec. 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 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
Sec. 54.101(a)(1) through (a)(9), and charge Lifeline consumers the
resulting amount.
(c) Lifeline support for providing toll limitation shall equal the
eligible telecommunications carrier's incremental cost of providing
either toll blocking or toll control, whichever is selected by the
particular consumer.
[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]
Sec. 54.405 Carrier obligation to offer Lifeline.
All eligible telecommunications carriers shall:
(a) Make available Lifeline service, as defined in Sec. 54.401, to
qualifying low-income consumers, and
(b) Publicize the availability of Lifeline service in a manner
reasonably designed to reach those likely to qualify for the service.
(c) Notify Lifeline subscribers of impending termination of Lifeline
service if the carrier has a reasonable basis to believe that the
subscriber no longer meets the Lifeline-qualifying criteria, as
described in Sec. 54.409. Notification of impending termination shall
be in the form of a letter separate from the subscriber's monthly bill.
A carrier providing Lifeline service in a state that has dispute
resolution procedures applicable to Lifeline termination, that requires,
at a minimum, written notification of impending termination, must comply
with the applicable state requirements.
(d) Allow subscribers 60 days following the date of the impending
termination letter required in paragraph (c) of this section in which to
demonstrate continued eligibility. Subscribers making such a
demonstration must present proof of continued eligibility to the carrier
consistent with applicable state or federal verification requirements,
as described in Sec. 54.410(c). Carriers must terminate subscribers who
fail to demonstrate continued eligibility within the 60-day time period.
A carrier providing Lifeline service in
[[Page 130]]
a state that has dispute resolution procedures applicable to Lifeline
termination must comply with the applicable state requirements.
[65 FR 47905, Aug. 4, 2000, as amended at 69 FR 34600, June 22, 2004]
Effective Date Note: At 69 FR 34600, June 22, 2004, Sec. 54.405,
paragraphs (c) and (d) were added. 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.
Sec. 54.407 Reimbursement for offering Lifeline.
(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.
(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 Sec. 54.403(c). The eligible telecommunications
carrier's universal service support reimbursement shall not exceed the
carrier's standard, non-Lifeline rate.
(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 Sec.
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.
Sec. 54.409 Consumer qualification for Lifeline.
(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 Sec. 54.400(e),
must ensure that its qualification criteria are reasonably designed to
apply to low-income individuals living in such areas.
(b) To qualify to receive Lifeline service in a state that does not
mandate state Lifeline support, a consumer's income, as defined in Sec.
54.400(f), must be at or below 135% of the Federal Poverty Guidelines or
a consumer must participate in one of the following federal assistance
programs: Medicaid; Food Stamps; Supplemental Security Income; Federal
Public Housing Assistance (Section 8); Low-Income Home Energy Assistance
Program; National School Lunch Program's free lunch program; or
Temporary Assistance for Needy Families.
(c) A consumer that lives on a reservation or near a reservation,
but does not meet the qualifications for Lifeline specified in
paragraphs (a) and (b) of this section, nonetheless shall be a
``qualifying low-income consumer'' as defined in Sec. 54.400(a) and
thus an ``eligible resident of Tribal lands'' as defined in Sec.
54.400(e) and 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 Sec.
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
[[Page 131]]
section, and lives on or near a reservation, as defined in Sec.
54.400(e). 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. 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 Sec. 54.403(a)(3).
(d) In a state that does not mandate state Lifeline support, each
eligible telecommunications carrier providing Lifeline service to a
qualifying low-income consumer pursuant to paragraphs (b) or (c) of this
section must obtain that consumer's signature on a document certifying
under penalty of perjury that:
(1) The consumer receives benefits from one of the programs listed
in paragraphs (b) or (c) of this section, and identifying the program or
programs from which that consumer receives benefits, or
(2) The consumer's household meets the income requirement of
paragraph (b) of this section, and that the presented documentation of
income, as described in Sec. Sec. 54.400(f), 54.410(a)(ii), accurately
represents the consumer's household income; and
(3) The consumer will notify the carrier if that consumer ceases to
participate in the program or programs or if the consumer's income
exceeds 135% of the Federal Poverty Guidelines.
[65 FR 47905, Aug. 4, 2000, as amended at 68 FR 41942, July 16, 2003; 69
FR 34600, June 22, 2004]
Effective Date Note: At 69 FR 34600, June 22, 2004, Sec. 54.409
paragraph (d) was added. 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.
Sec. 54.410 Certification and Verification of Consumer Qualification
for Lifeline.
(a) Certification of income. Consumers qualifying under an income-
based criterion must present documentation of their household income
prior to enrollment in Lifeline.
(1) By one year from the effective date of these rules, eligible
telecommunications carriers in states that mandate state Lifeline
support must comply with state certification procedures to document
consumer income-based eligibility for Lifeline prior to that consumer's
enrollment if the consumer is qualifying under an income-based
criterion.
(2) By one year from the effective date of these rules, eligible
telecommunications carriers in states that do not mandate state Lifeline
support must implement certification procedures to document consumer-
income-based eligibility for Lifeline prior to that consumer's
enrollment if the consumer is qualifying under the income-based
criterion specified in Sec. 54.409(b). Acceptable documentation of
income eligibility includes the prior year's state, federal, or tribal
tax return, current income statement from an employer or paycheck stub,
a Social Security statement of benefits, a Veterans Administration
statement of benefits, a retirement/pension statement of benefits, an
Unemployment/Workmen's Compensation statement of benefits, federal or
tribal notice letter of participation in General Assistance, a divorce
decree, child support, or other official document. If the consumer
presents documentation of income that does not cover a full year, such
as current pay stubs, the consumer must present three consecutive months
worth of the same types of document within that calendar year.
(b) Self-certifications. After income certification procedures are
implemented, eligible telecommunications carriers and consumers are
required to make certain self-certifications, under penalty of perjury,
relating to the Lifeline program. Eligible telecommunications carriers
must retain records of their self-certifications and those made by
consumers.
(1) An officer of the eligible telecommunications carrier in a state
that mandates state Lifeline support must certify that the eligible
telecommunications carrier is in compliance with state Lifeline income
certification procedures and that, to the best of his/her
[[Page 132]]
knowledge, documentation of income was presented.
(2) An officer of the eligible telecommunications carrier in a state
that does not mandate state Lifeline support must certify that the
eligible telecommunications carrier has procedures in place to review
income documentation and that, to the best of his/her knowledge, the
carrier was presented with documentation of the consumer's household
income.
(3) Consumers qualifying for Lifeline under an income-based
criterion must certify the number of individuals in their households on
the document required in Sec. 54.409(d).
(c) Verification of Continued Eligibility. Consumers qualifying for
Lifeline may be required to verify continued eligibility on an annual
basis.
(1) By one year from the effective date of these rules, eligible
telecommunications carriers in states that mandate state Lifeline
support must comply with state verification procedures to validate
consumers' continued eligibility for Lifeline. The eligible
telecommunications carrier must be able to document that it is complying
with state regulations and verification requirements.
(2) By one year from the effective date of these rules, eligible
telecommunications carriers in states that do not mandate state Lifeline
support must implement procedures to verify annually the continued
eligibility of a statistically valid random sample of their Lifeline
subscribers. Eligible telecommunications carriers may verify directly
with a state that particular subscribers continue to be eligible by
virtue of participation in a qualifying program or income level. To the
extent eligible telecommunications carriers cannot obtain the necessary
information from the state, they may survey subscribers directly and
provide the results of the sample to the Administrator. Subscribers who
are subject to this verification and qualify under program-based
eligibility criteria must prove their continued eligibility by
presenting in person or sending a copy of their Lifeline-qualifying
public assistance card and self-certifying, under penalty of perjury,
that they continue to participate in the Lifeline-qualifying public
assistance program. Subscribers who are subject to this verification and
qualify under the income-based eligibility criteria must prove their
continued eligibility by presenting current income documentation
consistent with the income-certification process in Sec. 54.410(a)(2).
These subscribers must also self-certify, under penalty of perjury, the
number of individuals in their household and that the documentation
presented accurately represents their annual household income. An
officer of the eligible telecommunications carrier must certify, under
penalty of perjury, that the company has income verification procedures
in place and that, to the best of his or her knowledge, the company was
presented with corroborating documentation. The eligible
telecommunications carrier must retain records of these certifications.
[69 FR 34600, June 22, 2004, as amended at 73 FR 42274, July 21, 2008]
Effective Date Note: At 69 FR 34600, June 22, 2004, Sec. 54.410 was
added. This section contains information collection and recordkeeping
requirements and will not become effective until approval has been given
by the Office of Management and Budget.
Sec. 54.411 Link Up program defined.
(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 Sec. Sec. 54.101(a)(9) and
54.101(b):
(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
(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
[[Page 133]]
network. These charges do not include any permissible security deposit
requirements.
(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 Sec. 68.3 of this chapter.
(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.
(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.
(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.
[62 FR 32948, June 17, 1997, as amended at 65 FR 47906, Aug. 4, 2000]
Sec. 54.413 Reimbursement for revenue forgone in offering a Link Up
program.
(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 Sec. 54.411.
(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
Sec. 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.
Sec. 54.415 Consumer qualification for Link Up.
(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
Sec. 54.409(a).
(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 Sec. 54.409(b).
(c) Notwithstanding paragraphs (a) and (b) of this section, an
eligible resident of Tribal lands, as defined in Sec. 54.400(e), shall
qualify to receive Link Up support.
[65 FR 47906, Aug. 4, 2000]
Sec. 54.416 Certification of consumer Qualification for Link Up.
Consumers qualifying under an income-based criterion must present
documentation of their household income prior to enrollment in Link Up
consistent with requirements set forth in Sec. Sec. 54.410(a) and (b).
[69 FR 34601, June 22, 2004]
[[Page 134]]
Effective Date Note: At 69 FR 34601, June 22, 2004, Sec. 54.416 was
added. This section contains information collection and recordkeeping
requirements and will not become effective until approval has been given
by the Office of Management and Budget.
Sec. 54.417 Recordkeeping requirements.
(a) Eligible telecommunications carriers must maintain records to
document compliance with all Commission and state requirements governing
the Lifeline/Link Up programs for the three full preceding calendar
years and provide that documentation to the Commission or Administrator
upon request.
Notwithstanding the preceding sentence, eligible telecommunications
carriers must maintain the documentation required in Sec. Sec.
54.409(d) and 54.410(b)(3) for as long as the consumer receives Lifeline
service from that eligible telecommunications carrier
(b) Non-eligible-telecommunications-carrier resellers that purchase
Lifeline discounted wholesale services to offer discounted services to
low-income consumers must maintain records to document compliance with
all Commission requirements governing the Lifeline/Link Up programs for
the three full preceding calendar years and provide that documentation
to the Commission or Administrator upon request. To the extent such a
reseller provides discounted services to low-income consumers, it
constitutes the eligible telecommunications carrier referenced in
Sec. Sec. 54.405(c), 54.405(d), 54.409(d), 54.410, and 54.416.
[69 FR 34601, June 22, 2004, as amended at 72 FR 54218, Sept. 24, 2007]
Sec. 54.418 Digital Television Transition Notices by Eligible
Telecommunications Carriers.
(a) Eligible telecommunications carriers (ETCs) that receive federal
universal service funds shall provide their Lifeline or Link-Up
customers with notices about the transition for over-the-air full power
broadcasting from analog to digital service (the ``DTV Transition'') in
the monthly bills or bill notices received by such customers, or as a
monthly stand-alone mailer (e.g., postcard, brochure), beginning April
1, 2009, and concluding on June 30, 2009.
(b) The notice must be provided as part of an information section on
the bill or bill notice itself or on a secondary document mailed with
the bill or bill notice, or as part of a monthly stand-alone mailer
(e.g., postcard, brochure) in the same language or languages as the
customer's bill or bill notice. These notices must:
(1) Be in clear and conspicuous print;
(2) Convey at least the following information about the DTV
transition:
(i) The nationwide switch to digital television broadcasting will be
complete on June 12, 2009, but your local television stations may switch
sooner. After the switch, analog-only television sets that receive TV
programming through an antenna will need a converter box to continue to
receive over-the-air TV. Watch your local stations to find out when they
will turn off their analog signal and switch to digital-only
broadcasting. Analog-only TVs should continue to work as before to
receive low power, Class A or translator television stations and with
cable and satellite TV services, gaming consoles, VCRs, DVD players, and
similar products.
(ii) Information about the DTV transition is available from your
local television stations, http://www.DTV.gov, or 1-888-CALL-FCC (TTY 1-
888-TELL-FCC), and from http://www.dtv2009.gov or 1-888-DTV-2009 (TTY 1-
877-530-2634) for information about subsidized coupons for digital-to-
analog converter boxes;
(c) If an ETC's Lifeline or Link-Up customer does not receive paper
versions of either a bill or a notice of billing, then that customer
must be provided with equivalent monthly notices in whatever medium they
receive information about their monthly bill or as a monthly stand-alone
mailer (e.g., postcard, brochure).
(d) ETCs that receive federal universal service funds shall provide
information on the DTV Transition that is equivalent to the information
provided pursuant to paragraph (b)(2) of this section as part of any
Lifeline or Link-Up publicity campaigns conducted by the ETC between
March 27, 2008, and June 30, 2009.
[73 FR 28732, May 19, 2008, as amended at 74 FR 8878, Feb. 27, 2009]
[[Page 135]]
Subpart F_Universal Service Support for Schools and Libraries
Sec. 54.500 Terms and definitions.
(a) Billed entity. A ``billed entity'' is the entity that remits
payment to service providers for services rendered to eligible schools
and libraries.
(b) Educational purposes. For purposes of this subpart, activities
that are integral, immediate, and proximate to the education of
students, or in the case of libraries, integral, immediate and proximate
to the provision of library services to library patrons, qualify as
``educational purposes.'' Activities that occur on library or school
property are presumed to be integral, immediate, and proximate to the
education of students or the provision of library services to library
patrons.
(c) Elementary school. An ``elementary school'' is a non-profit
institutional day or residential school, including a public elementary
charter school, that provides elementary education, as determined under
state law.
(d) Library. A ``library'' includes:
(1) A public library;
(2) A public elementary school or secondary school library;
(3) An academic library;
(4) A research library, which for the purpose of this section means
a library that:
(i) Makes publicly available library services and materials suitable
for scholarly research and not otherwise available to the public; and
(ii) Is not an integral part of an institution of higher education;
and
(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.
(e) Library consortium. 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.
(f) Lowest corresponding price. ``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.
(g) Master contract. 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.
(h) Minor contract modification. A ``minor contract modification''
is a change to a universal service contract 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.
(i) National school lunch program. 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.
(j) Pre-discount price. 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.
(k) Secondary school. A ``secondary school'' is a non-profit
institutional day or residential school that provides secondary
education, as determined
[[Page 136]]
under state law. A secondary school does not offer education beyond
grade 12.
(l) State telecommunications network. 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.
(m) Wide area network. 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.
[63 FR 2128, Jan. 13, 1998, as amended at 68 FR 36942, June 20, 2003]
Sec. 54.501 Eligibility for services provided by telecommunications
carriers.
(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.
(b) Schools. (1) Only schools meeting the statutory definitions of
``elementary school,'' as defined in 20 U.S.C. 7801(18), or ``secondary
school,'' as defined in 20 U.S.C. 7801(38), 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.
(2) Schools operating as for-profit businesses shall not be eligible
for discounts under this subpart.
(3) Schools with endowments exceeding $50,000,000 shall not be
eligible for discounts under this subpart.
(c) Libraries. (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.
(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.
(3) Libraries operating as for-profit businesses shall not be
eligible for discounts under this subpart.
(d) Consortia. (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.
(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.
(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
[[Page 137]]
of a consortium. Such records shall be available for public inspection.
[62 FR 32948, June 17, 1997, as amended at 63 FR 2129, Jan. 13, 1998; 68
FR 36942, June 20, 2003]
Sec. 54.502 Supported telecommunications services.
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.
[63 FR 2129, Jan. 13, 1998]
Sec. 54.503 Other supported special services.
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.
[63 FR 2129, Jan. 13, 1998, 68 FR 36942, June 20, 2003]
Sec. 54.504 Requests for services.
(a) Competitive bid requirements. Except as provided in Sec.
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 Sec. Sec. 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.
(b) Posting of FCC Form 470. (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:
(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;
(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;
(iii) The computer software necessary to communicate with other
computers over an internal network and over the public
telecommunications network currently available or budgeted for purchase
for the current, next, or future academic years;
(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;
(v) Existing or budgeted maintenance contracts to maintain
computers; and
(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.
(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:
(i) The schools meet the statutory definition of elementary and
secondary schools found under section 254(h) of the Act, as amended in
the No Child Left Behind Act of 2001, 20 U.S.C. 7801(18) and (38), do
not operate as for-profit businesses, and do not have endowments
exceeding $50 million;
[[Page 138]]
(ii) The libraries or library consortia eligible for assistance from
a State library administrative agency under the Library Services and
Technology Act of 1996 do not operate as for-profit businesses and whose
budgets are completely separate from any school (including, but not
limited to, elementary and secondary schools, colleges, and
universities).
(iii) All of the individual schools, libraries, and library
consortia receiving services are covered by:
(A) Individual technology plans for using the services requested in
the application; and/or
(B) Higher-level technology plans for using the services requested
in the application; or
(C) No technology plan needed because application requests basic
local and/or long distance service and/or voicemail only.
(iv) The technology plan(s) has/have been approved by a state or
other authorized body; the technology plan(s) will be approved by a
state or other authorized body; or no technology plan needed because
applicant is applying for basic local, cellular, PCS, and/or long
distance telephone service and/or voicemail only.
(v) The services the applicant purchases at discounts will be used
solely for educational purposes and will not be sold, resold, or
transferred in consideration for money or any other thing of value.
(vi) Support under this support mechanism is conditional upon the
school(s) and library(ies) securing access to all of the resources,
including computers, training, software, maintenance, internal
connections, and electrical connections necessary to use the services
purchased effectively.
(vii) All bids submitted will be carefully considered and the bid
selected will be for the most cost-effective service or equipment
offering, with price being the primary factor, and will be the most
cost-effective means of meeting educational needs and technology plan
goals.
(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.
(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).
(c) Filing of FCC Form 471. 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.
(1) FCC Form 471 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:
(i) The schools meet the statutory definition of elementary and
secondary schools found under section 254(h) of the Act, as amended in
the No Child Left Behind Act of 2001, 20 U.S.C. 7801(18) and (38), do
not operate as for-profit businesses, and do not have endowments
exceeding $50 million.
(ii) The libraries or library consortia eligible for assistance from
a State library administrative agency under the Library Services and
Technology Act of 1996 do not operate as for-profit businesses and whose
budgets are completely separate from any school (including, but not
limited to, elementary and secondary schools, colleges, and
universities).
(iii) The entities listed on the FCC Form 471 application have
secured access to all of the resources, including computers, training,
software, maintenance, internal connections, and electrical connections,
necessary to make effective use of the services purchased, as well as to
pay the discounted
[[Page 139]]
charges for eligible services from funds to which access has been
secured in the current funding year. The billed entity will pay the non-
discount portion of the cost of the goods and services to the service
provider(s).
(iv) All of the schools and libraries listed on the FCC Form 471
application are covered by:
(A) An individual technology plan for using the services requested
in the application; and/or
(B) Higher-level technology plan(s) for using the services requested
in the FCC Form 471 application; or
(C) No technology plan needed; applying for basic local and long
distance telephone service only.
(v) Status of technology plan(s) has/have been approved; will be
approved by a state or other authorized body; or no technology plan is
needed because applicant is applying for basic local, cellular, PCS,
and/or long distance telephone service and/or voicemail only.
(vi) The entities listed on the FCC Form 471 application have
complied with all applicable state and local laws regarding procurement
of services for which support is being sought.
(vii) The services the applicant purchases at discounts will be used
solely for educational purposes and will not be sold, resold, or
transferred in consideration for money or any other thing of value.
(viii) The entities listed in the application have complied with all
program rules and acknowledge that failure to do so may result in denial
of discount funding and/or recovery of funding.
(ix) The applicant understands that the discount level used for
shared services is conditional, for future years, upon ensuring that the
most disadvantaged schools and libraries that are treated as sharing in
the service, receive an appropriate share of benefits from those
services.
(x) The applicant recognizes that it may be audited pursuant to its
application, that it will retain for five years any and all worksheets
and other records relied upon to fill out its application, and that, if
audited, it will make such records available to the Administrator.
(xi) All bids submitted were carefully considered and the most cost-
effective bid for services or equipment was selected, with price being
the primary factor considered, and is the most cost-effective means of
meeting educational needs and technology plan goals.
(2) [Reserved]
(d) Mixed eligibility requests. If 30 percent or more of a request
for discounts made in an FCC Form 471 is for ineligible services, the
request shall be denied in its entirety.
(e) Rate disputes. 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.
(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.
(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.
(f) Service substitution. (1) The Administrator shall grant a
request by an applicant to substitute a service or product for one
identified on its FCC Form 471 where:
(i) The service or product has the same functionality;
(ii) The substitution does not violate any contract provisions or
state or local procurement laws;
(iii) The substitution does not result in an increase in the
percentage of ineligible services or functions; and
(iv) The applicant certifies that the requested change is within the
scope of the controlling FCC Form 470, including any associated Requests
for Proposal, for the original services.
(2) In the event that a service substitution results in a change in
the pre-discount price for the supported service, support shall be based
on the lower of either the pre-discount price of the
[[Page 140]]
service for which support was originally requested or the pre-discount
price of the new, substituted service.
(3) For purposes of this rule, the broad categories of eligible
services (telecommunications service, Internet access, and internal
connections) are not deemed to have the same functionality with one
another.
(g) Mixed eligibility services. A request for discounts for a
product or service that includes both eligible and ineligible components
must allocate the cost of the contract to eligible and ineligible
components.
(1) Ineligible components. If a product or service contains
ineligible components, costs must be allocated to the extent that a
clear delineation can be made between the eligible and ineligible
components. The delineation must have a tangible basis, and the price
for the eligible portion must be the most cost-effective means of
receiving the eligible service.
(2) Ancillary ineligible components. If a product or service
contains ineligible components that are ancillary to the eligible
components, and the product or service is the most cost-effective means
of receiving the eligible component functionality, without regard to the
value of the ineligible component, costs need not be allocated between
the eligible and ineligible components. Discounts shall be provided on
the full cost of the product or service. An ineligible component is
``ancillary'' if a price for the ineligible component cannot be
determined separately and independently from the price of the eligible
components, and the specific package remains the most cost-effective
means of receiving the eligible services, without regard to the value of
the ineligible functionality.
(3) The Administrator shall utilize the cost allocation requirements
of this subparagraph in evaluating mixed eligibility requests under
Sec. 54.504(d)(1).
(h) Filing of FCC Form 473. All service providers eligible to
provide telecommunications and other supported services under this
subpart shall submit annually a completed FCC Form 473 to the
Administrator. FCC Form 473 shall be signed by an authorized person and
shall include that person's certification under oath that:
(1) The prices in any offer that this service provider makes
pursuant to the schools and libraries universal service support program
have been arrived at independently, without, for the purpose of
restricting competition, any consultation, communication, or agreement
with any other offeror or competitor relating to those prices, the
intention to submit an offer, or the methods or factors used to
calculate the prices offered;
(2) The prices in any offer that this service provider makes
pursuant to the schools and libraries universal service support program
will not be knowingly disclosed by this service provider, directly or
indirectly, to any other offeror or competitor before bid opening (in
the case of a sealed bid solicitation) or contract award (in the case of
a negotiated solicitation) unless otherwise required by law; and
(3) No attempt will be made by this service provider to induce any
other concern to submit or not to submit an offer for the purpose of
restricting competition.
[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; 68 FR 36942, June
20, 2003; 69 FR 6190, Feb. 10, 2004, 69 FR 55109, Sept. 13, 2004; 69 FR
59145, Oct. 4, 2004]
Sec. 54.505 Discounts.
(a) Discount mechanism. Discounts for eligible schools and libraries
shall be set as a percentage discount from the pre-discount price.
(b) Discount percentages. 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.
(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
[[Page 141]]
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.
(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.
(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.
(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.
(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.
(4) School districts, library systems, or other billed entities
shall calculate discounts on supported services described in Sec.
54.502 or other supported special services described in Sec. 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.
(c) Matrix. 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.
----------------------------------------------------------------------------------------------------------------
Schools and Libraries discount matrix Discount level
----------------------------------------------------------------------------------------------------------------
How disadvantaged?
--------------------------------------------------------------------------- Urban discount Rural discount
% of students eligible for national school lunch program
----------------------------------------------------------------------------------------------------------------
<1........................................................................ 20 25
1-19...................................................................... 40 50
20-34..................................................................... 50 60
35-49..................................................................... 60 70
[[Page 142]]
50-74..................................................................... 80 80
75-100.................................................................... 90 90
----------------------------------------------------------------------------------------------------------------
(d) [Reserved]
(e) Interstate and intrastate services. Federal universal service
support for schools and libraries shall be provided for both interstate
and intrastate services.
(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.
(2) A state may, however, secure a temporary waiver of this latter
requirement based on unusually compelling conditions.
(f) State support. 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.
[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]
Sec. 54.506 Internal connections.
(a) 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.
(b) Basic maintenance services. Basic maintenance services shall be
eligible as an internal connections service if, but for the maintenance
at issue, the internal connection would not function and serve its
intended purpose with the degree of reliability ordinarily provided in
the marketplace to entities receiving such services. Basic maintenance
services do not include services that maintain equipment that is not
supported or that enhance the utility of equipment beyond the transport
of information, or diagnostic services in excess of those necessary to
maintain the equipment's ability to transport information.
(c) Frequency of discounts for internal connections services. Each
eligible school or library shall be eligible for support for internal
connections services, except basic maintenance services, no more than
twice every five funding years. For the purpose of determining
eligibility, the five-year period begins in any funding year, starting
with Funding Year 2005, in which the school or library receives
discounted internal connections services other than basic maintenance
services. If a school or library receives internal connections services
other than basic maintenance services that are shared with other schools
or libraries (for example, as part of a consortium), the shared services
will be attributed the school or library in determining whether it is
eligible for support.
[69 FR 6191, Feb. 10, 2004]
Sec. 54.507 Cap.
(a) Amount of the annual cap. The annual funding cap on federal
universal service support for schools and libraries shall be $2.25
billion per funding year. All funding authority for a given funding year
that is unused in that funding year shall be carried forward
[[Page 143]]
into subsequent funding years for use in accordance with demand. All
funds collected that are unused shall be applied to stabilize universal
service contributions in accordance with the public interest and
consistent with Sec. 54.709(b) for no more than three quarters,
beginning with third quarter 2002. Beginning no later than second
quarter 2003, all funds collected that are unused shall be carried
forward into subsequent funding years for use in the schools and
libraries support mechanism in accordance with the public interest and
notwithstanding the annual cap.
(1) Amount of unused funds. The Administrator shall report to the
Commission, on a quarterly basis, funding that is unused from prior
years of the schools and libraries support mechanism.
(2) Application of unused funds. On an annual basis, in the second
quarter of each calendar year, all funds that are collected and that are
unused from prior years shall be available for use in the next full
funding year of the schools and libraries mechanism in accordance with
the public interest and notwithstanding the annual cap, as described in
paragraph (a) of this section.
(b) A funding year for purposes of the schools and libraries cap
shall be the period July 1 through June 30.
(c) Requests. 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.
(d) Annual filing requirement. 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. Schools, libraries, and eligible consortia must use
recurring services for which discounts have been committed by the
Administrator within the funding year for which the discounts were
sought. The deadline for implementation of non-recurring services will
be September 30 following the close of the funding year. An applicant
may request and receive from the Administrator an extension of the
implementation deadline for non-recurring services if it satisfies one
of the following criteria:
(1) The applicant's funding commitment decision letter is issued by
the Administrator on or after March 1 of the funding year for which
discounts are authorized;
(2) The applicant receives a service provider change authorization
or service substitution authorization from the Administrator on or after
March 1 of the funding year for which discounts are authorized;
(3) The applicant's service provider is unable to complete
implementation for reasons beyond the service provider's control; or
(4) The applicant's service provider is unwilling to complete
installation because funding disbursements are delayed while the
Administrator investigates their application for program compliance.
(e) Long term contracts. 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.
(f) Date services must be supplied. The Administrator shall not
approve funding for services received by a school or library before
January 1, 1998.
(g) Rules of priority. Administrator shall act in accordance with
paragraph (g)(1) of this section with respect to applicants that file a
Form 471, as described in Sec. 54.504(c) of this part, when a filing
period described in paragraph (c)
[[Page 144]]
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 Sec. 54.504(c) of this part, at all times
other than within a filing period described in paragraph (c) of this
section.
(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:
(i) Schools and Libraries Corporation shall first calculate the
demand for telecommunications services, voice mail, and Internet access
for all discount categories, as determined by the schools and libraries
discount matrix in Sec. 54.505(c). These services shall receive first
priority for the available funding.
(ii) Schools and Libraries Corporation shall then calculate the
amount of available funding remaining after providing support for all
telecommunications services, voice mail, 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 Sec. 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.
(iii) To the extent that funds remain after the allocation described
in Sec. 54.507(g)(1) (i) and (ii), Schools and Libraries Corporation
shall next allocate 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.
Note to paragraph (g)(l)(iii): To the extent that there are single
discount percentage levels associated with ``shared services'' under
Sec. 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.
(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.
(v) Schools and Libraries Corporation shall commit funds to all
applicants consistent with the calculations described herein.
(2) Rules of priority. 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:
(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.
(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
[[Page 145]]
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.
(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.
(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.
[62 FR 32948, June 17, 1997]
Editorial Note: For Federal Register citations affecting Sec.
54.507, see the List of CFR Sections Affected, which appears in the
Finding Aids section of the printed volume and on GPO Access.
Sec. 54.508 Technology plans.
(a) Contents. The technology plans referred to in this subpart must
include the following five elements:
(1) A clear statement of goals and a realistic strategy for using
telecommunications and information technology to improve education or
library services;
(2) A professional development strategy to ensure that the staff
understands how to use these new technologies to improve education or
library services;
(3) An assessment of the telecommunication services, hardware,
software, and other services that will be needed to improve education or
library services;
(4) A budget sufficient to acquire and support the non-discounted
elements of the plan: the hardware, software, professional development,
and other services that will be needed to implement the strategy; and
(5) An evaluation process that enables the school or library to
monitor progress toward the specified goals and make mid-course
corrections in response to new developments and opportunities as they
arise.
(b) Relevance of approval under Enhancing Education through
Technology. Technology plans that meet the standards of the Department
of Education's Enhancing Education Through Technology (EETT), 20 U.S.C.
6764, are sufficient for satisfying paragraphs (a)(1), (a)(2), (a)(3)
and (a)(5) of this section, but applicants must supplement such plans
with an analysis demonstrating that they meet the budgetary requirement
described in paragraph (a)(4) of this section. Furthermore, to the
extent that the Department of Education adopts future technology plan
requirements that require one or more of the five elements described in
paragraph (a) of this section, such plans will be acceptable for
satisfying those elements of paragraph (a) of this section. Applicants
with such plans will only need to supplement such plans with the
analysis needed to satisfy those elements of paragraph (a) of this
section not covered by the future Department of Education technology
plan requirements.
(c) Timing of certification. As required under 54.504(b)(2)(vii) and
(c)(1)(v), applicants must certify that they have prepared any required
technology plans. They must also confirm, in FCC Form 486, that their
plan was approved before they began receiving services pursuant to it.
(d) Parties qualified to approve technology plans required in this
subpart. Applicants required to prepare and obtain approval of
technology plans under this subpart must obtain such approval from
either their state, the Administrator, or an independent entity approved
by the Commission or certified by the Administrator as qualified to
provide such approval. All parties who will provide such approval must
apply the standards set forth in paragraphs (a) and (b) of this section.
[69 FR 55110, Sept. 13, 2004; 69 FR 59145, Oct. 4, 2004]
[[Page 146]]
Sec. 54.509 Adjustments to the discount matrix.
(a) Estimating future spending requests. 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 to enable the Administrator, to estimate funding demand for the
following year.
(b) Reduction in percentage discounts. At all times other than
within a filing period described in Sec. 54.507(c), if the estimates
schools and libraries make of their future funding needs lead the
Administrator to predict that total funding request 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.
(c) Remaining funds. 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.
[62 FR 32948, June 17, 1997, as amended at 62 FR 41304, Aug. 1, 1997; 63
FR 70572, Dec. 21, 1998; 69 FR 6191, Feb. 10, 2004]
Sec. 54.511 Ordering services.
(a) Selecting a provider of eligible services. 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 must select the most cost-effective service
offering. In determining which service offering is the most cost-
effective, entities may consider relevant factors other than the pre-
discount prices submitted by providers but price should be the primary
factor considered.
(b) Lowest corresponding price. 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.
(c) Existing contracts. (1) A signed contract for services eligible
for discounts pursuant to this subpart between an eligible school or
library as defined under Sec. 54.501 or consortium that includes an
eligible school or library and a service provider shall be exempt from
the requirements set forth in Sec. 54.504(a), (b)(3), and (b)(4) as
follows:
(i) A contract signed on or before July 10, 1997 is exempt from the
competitive bid requirements for the life of the contract; or
(ii) A contract signed after July 10, 1997, but before the date on
which the universal service competitive bid system described in Sec.
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.
(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.
(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.
(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 Sec. 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
[[Page 147]]
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.
(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 subject
to that contract and for which discounts have been approved.
[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; 68 FR 36942, June 20, 2003]
Sec. 54.513 Resale and transfer of services.
(a) Prohibition on resale. 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.
(b) Permissible fees. 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.
(c) Eligible services and equipment components of eligible services
purchased at a discount under this subpart shall not be transferred,
with or without consideration of money or any other thing of value, for
a period of three years after purchase, except that eligible services
and equipment components of eligible services may be transferred to
another eligible school or library in the event that the particular
location where the service originally was received is permanently or
temporarily closed. If an eligible service or equipment component of a
service is transferred due to the permanent or temporary closure of a
school or library, the transferor must notify the Administrator of the
transfer, and both the transferor and recipient must maintain detailed
records documenting the transfer and the reason for the transfer for a
period of five years.
[62 FR 32948, June 17, 1997, as amended at 69 FR 6191, Feb. 10, 2004]
Effective Date Note: At 69 FR 6191, Feb. 10, 2004, Sec. 54.513 was
amended by revising the section heading and adding paragraph (c),
effective Mar. 11, 2004. Paragraph (c) contains information collection
and recordkeeping requirements and will not become effective until
approval has been given by the Office of Management and Budget.
Sec. 54.514 Payment for discounted service.
(a) Choice of payment method. Service providers providing discounted
services under this subpart in any funding year shall, prior to the
submission the Form 471, permit the billed entity to choose the method
of payment for the discounted services from those methods approved by
the Administrator, including by making a full, undiscounted payment and
receiving subsequent reimbursement of the discount amount from the
service provider.
(b) Deadline for remittance of reimbursement checks. Service
providers that receive discount reimbursement checks from the
Administrator after having received full payment from the billed entity
must remit the discount amount to the billed entity no later than 20
business days after receiving the reimbursement check.
[68 FR 36942, June 20, 2003]
Effective Date Note: At 68 FR 36942, June 20, 2003, as corrected at
68 FR 39471, July 2, 2003, Sec. 54.514 was added, effective July 21,
2003, except for paragraph (a), which is effective July 1, 2004. In
addition, paragraph (b) contains information collection and
recordkeeping requirements and will not become effective until approval
has been given by the Office of Management and Budget.
Sec. 54.515 Distributing support.
(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
[[Page 148]]
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.
(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.
[63 FR 67009, Dec. 4, 1998]
Sec. 54.516 Auditing.
(a) Recordkeeping requirements--(1) Schools and libraries. Schools
and libraries shall retain all documents related to the application for,
receipt, and delivery of discounted telecommunications and other
supported services for at least 5 years after the last day of service
delivered in a particular Funding Year. Any other document that
demonstrates compliance with the statutory or regulatory requirements
for the schools and libraries mechanism shall be retained as well.
Schools and libraries shall maintain asset and inventory records of
equipment purchased as components of supported internal connections
services sufficient to verify the actual location of such equipment for
a period of five years after purchase.
(2) Service providers. Service providers shall retain documents
related to the delivery of discounted telecommunications and other
supported services for at least 5 years after the last day of the
delivery of discounted services. Any other document that demonstrates
compliance with the statutory or regulatory requirements for the schools
and libraries mechanism shall be retained as well.
(b) Production of records. Schools, libraries, and service providers
shall produce such records at the request of any representative
(including any auditor) appointed by a state education department, the
Administrator, the FCC, or any local, state or federal agency with
jurisdiction over the entity.
(c) Audits. Schools, libraries, and service providers shall be
subject to audits and other investigations to evaluate their compliance
with the statutory and regulatory requirements for the schools and
libraries universal service support mechanism, including those
requirements pertaining to what services and products are purchased,
what services and products are delivered, and how services and products
are being used. Schools and libraries receiving discounted services must
provide consent before a service provider releases confidential
information to the auditor, reviewer, or other representative.
[69 FR 55111, Sept. 13, 2004]
Sec. 54.517 Services provided by non-telecommunications carriers.
(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.
(b) Supported services. Non-telecommunications carriers shall be
eligible for universal service support under this subpart for providing
voice mail, Internet access, and installation and maintenance of
internal connections.
[[Page 149]]
(c) Requirements. Such services provided by non-telecommunications
carriers shall be subject to all the provisions of this subpart, except
Sec. Sec. 54.501(a), 54.502, 54.503, 54.515.
[62 FR 32948, June 17, 1997, as amended at 63 FR 2131, Jan. 13, 1998; 68
FR 36942, June 20, 2003]
Sec. 54.518 Support for wide area networks.
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.
[63 FR 2131, Jan. 13, 1998]
Sec. 54.519 State telecommunications networks.
(a) Telecommunications services. State telecommunications networks
may secure discounts under the universal service support mechanisms on
supported telecommunications services (as described in Sec. 54.502) on
behalf of eligible schools and libraries (as described in Sec. 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:
(1) Maintain records listing each eligible school and library and
showing the basis for each eligibility determination;
(2) Maintain records demonstrating the discount amount to which each
eligible school and library is entitled and the basis for such
determination;
(3) Take reasonable steps to ensure that each eligible school or
library receives a proportionate share of the shared services;
(4) Request that service providers apply the appropriate discount
amounts on the portion of the supported services used by each school or
library;
(5) Direct eligible schools and libraries to pay the discounted
price; and
(6) Comply with the competitive bid requirements set forth in Sec.
54.504(a).
(b) Internet access and installation and maintenance of internal
connections. 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 Sec. 54.517(b), to receive universal service support
for providing such services to eligible schools, libraries, and
consortia including those entities.
[63 FR 2131, Jan. 13, 1998; 63 FR 33586, June 19, 1998]
Sec. 54.520 Children's Internet Protection Act certifications
required from recipients of discounts under the federal universal
service support mechanism for schools and libraries.
(a) Definitions.
(1) School. For the purposes of the certification requirements of
this rule, school means school, school district, local education agency
or other authority responsible for administration of a school.
(2) Library. For the purposes of the certification requirements of
this rule, library means library, library board or authority responsible
for administration of a library.
(3) Billed entity. Billed entity is defined in Sec. 54.500. In the
case of a consortium, the billed entity is the lead member of the
consortium.
(4) Statutory definitions. The terms ``minor,'' ``obscene,'' ``child
pornography,'' ``harmful to minors'' and ``technology protection
measure'' as used in this section, are defined in the Children's
Internet Protection Act section 1721(c).
(b) Who is required to make certifications? (1) A school or library
that receives discounts for Internet access and internal connections
services under the federal universal service support mechanism for
schools and libraries, must make such certifications as described in
paragraph (c) of this section. The certifications required and described
in paragraph (c) of this section must be made in each funding year.
(2) Schools and libraries that only receive discounts for
telecommunications services under the federal universal service support
mechanism for schools and libraries are not subject to the requirements
47 U.S.C. 254(h) and
[[Page 150]]
(l), but must indicate, pursuant to the certification requirements in
paragraph (c) of this section, that they only receive discounts for
telecommunications services.
(c) Certifications required under 47 U.S.C. 254(h) and (l)--(1)
Schools. The billed entity for a school that receives discounts for
Internet access or internal connections must certify on FCC Form 486
that an Internet safety policy is being enforced. If the school is an
eligible member of a consortium but is not the billed entity for the
consortium, the school must certify instead on FCC Form 479
(``Certification to Consortium Leader of Compliance with the Children's
Internet Protection Act'') that an Internet safety policy is being
enforced.
(i) The Internet safety policy adopted and enforced pursuant to 47
U.S.C. 254(h) must include a technology protection measure that protects
against Internet access by both adults and minors to visual depictions
that are obscene, child pornography, or, with respect to use of the
computers by minors, harmful to minors. This Internet safety policy must
also include monitoring the online activities of minors.
(ii) The Internet safety policy adopted and enforced pursuant to 47
U.S.C. 254(l) must address all of the following issues:
(A) Access by minors to inappropriate matter on the Internet and
World Wide Web,
(B) The safety and security of minors when using electronic mail,
chat rooms, and other forms of direct electronic communications,
(C) Unauthorized access, including so-called ``hacking,'' and other
unlawful activities by minors online;
(D) Unauthorized disclosure, use, and dissemination of personal
information regarding minors; and
(E) Measures designed to restrict minors' access to materials
harmful to minors.
(iii) A school must satisfy its obligations to make certifications
by making one of the following certifications required by paragraph
(c)(1) of this section on FCC Form 486:
(A) The recipient(s) of service represented in the Funding Request
Number(s) on this Form 486 has (have) complied with the requirements of
the Children's Internet Protection Act, as codified at 47 U.S.C. 254(h)
and (l).
(B) Pursuant to the Children's Internet Protection Act, as codified
at 47 U.S.C. 254(h) and (l), the recipient(s) of service represented in
the Funding Request Number(s) on this Form 486 is (are) undertaking such
actions, including any necessary procurement procedures, to comply with
the requirements of CIPA for the next funding year, but has (have) not
completed all requirements of CIPA for this funding year.
(C) The Children's Internet Protection Act, as codified at 47 U.S.C.
254(h) and (l), does not apply because the recipient(s) of service
represented in the Funding Request Number(s) on this Form 486 is (are)
receiving discount services only for telecommunications services.
(2) Libraries. The billed entity for a library that receives
discounts for Internet access and internal connections must certify, on
FCC Form 486, that an Internet safety policy is being enforced. If the
library is an eligible member of a consortium but is not the billed
entity for the consortium, the library must instead certify on FCC Form
479 (``Certification to Consortium Leader of Compliance with the
Children's Internet Protection Act'') that an Internet safety policy is
being enforced.
(i) The Internet safety policy adopted and enforced pursuant to 47
U.S.C. 254 (h) must include a technology protection measure that
protects against Internet access by both adults and minors to visual
depictions that are obscene, child pornography, or, with respect to use
of the computers by minors, harmful to minors.
(ii) The Internet safety policy adopted and enforced pursuant to 47
U.S.C. 254(l) must address all of the following issues:
(A) Access by minors to inappropriate matter on the Internet and
World Wide Web;
(B) The safety and security of minors when using electronic mail,
chat rooms, and other forms of direct electronic communications;
(C) Unauthorized access, including so-called ``hacking,'' and other
unlawful activities by minors online;
[[Page 151]]
(D) Unauthorized disclosure, use, and dissemination of personal
information regarding minors; and
(E) Measures designed to restrict minors' access to materials
harmful to minors.
(iii) A library must satisfy its obligations to make certifications
by making one of the following certifications required by paragraph
(c)(2) of this section on FCC Form 486:
(A) The recipient(s) of service represented in the Funding Request
Number(s) on this Form 486 has (have) complied with the requirements of
the Children's Internet Protection Act, as codified at 47 U.S.C. 254(h)
and (l).
(B) Pursuant to the Children's Internet Protection Act (CIPA), as
codified at 47 U.S.C. 254(h) and (l), the recipient(s) of service
represented in the Funding Request Number(s) on this Form 486 is (are)
undertaking such actions, including any necessary procurement
procedures, to comply with the requirements of CIPA for the next funding
year, but has (have) not completed all requirements of CIPA for this
funding year.
(C) The Children's Internet Protection Act, as codified at 47 U.S.C.
254(h) and (l), does not apply because the recipient(s) of service
represented in the Funding Request Number(s) on this Form 486 is (are)
receiving discount services only for telecommunications services.
(3) Certifications required from consortia members and billed
entities for consortia. (i) The billed entity of a consortium, as
defined in paragraph (a)(3) of this section, other than one requesting
only discounts on telecommunications services for consortium members,
must collect from the authority for each of its school and library
members, one of the following signed certifications on FCC Form 479
(``Certification to Consortium Leader of Compliance with the Children's
Internet Protection Act''), which must be submitted to the billed entity
consistent with paragraph (c)(1) or paragraph (c)(2) of this section:
(A) The recipient(s) of service under my administrative authority
and represented in the Funding Request Number(s) for which you have
requested or received Funding Commitments has (have) complied with the
requirements of the Children's Internet Protection Act, as codified at
47 U.S.C. 254(h) and (l).
(B) Pursuant to the Children's Internet Protection Act, as codified
at 47 U.S.C. 254(h) and (l), the recipient(s) of service under my
administrative authority and represented in the Funding Request
Number(s) for which you have requested or received Funding Commitments
is (are) undertaking such actions, including any necessary procurement
procedures, to comply with the requirements of CIPA for the next funding
year, but has (have) not completed all requirements of CIPA for this
funding year.
(C) The Children's Internet Protection Act, as codified at 47 U.S.C.
254(h) and (l), does not apply because the recipient(s) of service under
my administrative authority and represented in the Funding Request
Number(s) for which you have requested or received Funding Commitments
is (are) receiving discount services only for telecommunications
services; and
(ii) The billed entity for a consortium, as defined in paragraph
(a)(3) of this section, must make one of the following two
certifications on FCC Form 486: ``I certify as the Billed Entity for the
consortium that I have collected duly completed and signed Forms 479
from all eligible members of the consortium.''; or I certify ``as the
Billed Entity for the consortium that the only services that I have been
approved for discounts under the universal service support on behalf of
eligible members of the consortium are telecommunications services, and
therefore the requirements of the Children's Internet Protection Act, as
codified at 47 U.S.C. 254(h) and (l), do not apply.''; and
(iii) The billed entity for a consortium, as defined in paragraph
(a)(3) of this section, who filed an FCC Form 471 as a ``consortium
application'' and who is also a recipient of services as a member of
that consortium must select one of the certifications under paragraph
(c)(3)(i) of this section on FCC Form 486.
(d) Failure to provide certifications--(1) Schools and libraries. A
school or library that knowingly fails to submit certifications as
required by this section,
[[Page 152]]
shall not be eligible for discount services under the federal universal
service support mechanism for schools and libraries until such
certifications are submitted.
(2) Consortia. A billed entity's knowing failure to collect the
required certifications from its eligible school and library members or
knowing failure to certify that it collected the required certifications
shall render the entire consortium ineligible for discounts under the
federal universal service support mechanism for school and libraries.
(3) Reestablishing eligibility. At any time, a school or library
deemed ineligible for discount services under the federal universal
service support mechanism for schools and libraries because of failure
to submit certifications required by this section, may reestablish
eligibility for discounts by providing the required certifications to
the Administrator and the Commission.
(e) Failure to comply with the certifications--(1) Schools and
libraries. A school or library that knowingly fails to ensure the use of
computers in accordance with the certifications required by this
section, must reimburse any funds and discounts received under the
federal universal service support mechanism for schools and libraries
for the period in which there was noncompliance.
(2) Consortia. In the case of consortium applications, the
eligibility for discounts of consortium members who ensure the use of
computers in accordance with the certification requirements of this
section shall not be affected by the failure of other school or library
consortium members to ensure the use of computers in accordance with
such requirements.
(3) Reestablishing compliance. At any time, a school or library
deemed ineligible for discounts under the federal universal service
support mechanism for schools and libraries for failure to ensure the
use of computers in accordance with the certification requirements of
this section and that has been directed to reimburse the program for
discounts received during the period of noncompliance, may reestablish
compliance by ensuring the use of its computers in accordance with the
certification requirements under this section. Upon submittal to the
Commission of a certification or other appropriate evidence of such
remedy, the school or library shall be eligible for discounts under the
universal service mechanism.
(f) Waivers based on state or local procurement rules and
regulations and competitive bidding requirements. Waivers shall be
granted to schools and libraries when the authority responsible for
making the certifications required by this section, cannot make the
required certifications because its state or local procurement rules or
regulations or competitive bidding requirements, prevent the making of
the certification otherwise required. The waiver shall be granted upon
the provision, by the authority responsible for making the
certifications on behalf of schools or libraries, that the schools or
libraries will be brought into compliance with the requirements of this
section, for schools, before the start of the third program year after
April 20, 2001 in which the school is applying for funds under this
title, and, for libraries, before the start of Funding Year 2005 or the
third program year after April 20, 2001, whichever is later.
(g) Funding year certification deadlines. For Funding Year 2003 and
for subsequent funding years, billed entities shall provide one of the
certifications required under paragraph (c)(1), (c)(2) or (c)(3) of this
section on an FCC Form 486 in accordance with the existing program
guidelines established by the Administrator.
[66 FR 19396, Apr. 16, 2001; 66 FR 22133, May 3, 2001, as amended at 67
FR 50603, Aug. 5, 2002; 68 FR 47255, Aug. 8, 2003]
Sec. 54.522 Eligible services list.
The Administrator shall submit by June 30 of each year a draft list
of services eligible for support, based on the Commission's rules, in
the following funding year. The Commission will issue a Public Notice
seeking comment on the Administrator's proposed eligible services list.
At least 60 days prior to the opening of the window for the
[[Page 153]]
following funding year, the Commission shall release a Public Notice
attaching the final eligible services list for the upcoming funding
year.
[69 FR 6191, Feb. 10, 2004]
Sec. 54.523 Payment for the non-discount portion of supported
services.
An eligible school, library, or consortium must pay the non-discount
portion of services or products purchased with universal service
discounts. An eligible school, library, or consortium may not receive
rebates for services or products purchased with universal service
discounts. For the purpose of this rule, the provision, by the provider
of a supported service, of free services or products unrelated to the
supported service or product constitutes a rebate of the non-discount
portion of the supported services.
[69 FR 6192, Feb. 10, 2004]
Subpart G_Universal Service Support for Health Care Providers
Sec. 54.601 Eligibility.
(a) Health care providers. (1) Except with regard to those services
provided under Sec. 54.621(b), only an entity that is either a public
or non-profit rural health care provider, as defined in this section,
shall be eligible to receive supported services under this subpart.
(2) For purposes of this subpart, a ``health care provider'' is any:
(i) Post-secondary educational institution offering health care
instruction, including a teaching hospital or medical school;
(ii) Community health center or health center providing health care
to migrants;
(iii) Local health department or agency;
(iv) Community mental health center;
(v) Not-for-profit hospital;
(vi) Rural health clinic; or
(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.
(3) For purposes of this subpart, a rural health care provider is a
public or non-profit health care provider located in a rural area, as
defined in this subpart.
(i) Any health care provider that was located in a rural area under
the definition used by the Commission prior to July 1, 2005, and that
had received a funding commitment from USAC since 1998, remain eligible
for support under this subpart though the funding year ending on June
30, 2011.
(ii) [Reserved]
(4) 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.
(b) Consortia. (1) An eligible health care provider may join a
consortium 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.
(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.
(c) Services. (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 largest city in a state as defined in
Sec. 54.625(a).
(2) Internet access and limited toll-free access to internet. (i)
For purposes of this subpart, eligible Internet access is an information
service that enables rural health care providers to post their own data,
interact with stored
[[Page 154]]
data, generate new data, or communicate over the World Wide Web.
(ii) Internet access shall be eligible for universal service support
under Sec. 54.621(a).
(iii) Limited toll-free access to an Internet service provider shall
be eligible for universal service support under Sec. 54.621(b).
(3) Advanced telecommunications and information services as provided
under Sec. 54.621.
(d) Allocation of discounts. An eligible health care provider that
engages in eligible and ineligible activities or that collocates with an
entity that provides ineligible services shall allocate eligible and
ineligible activities in order to receive a prorated discount for
eligible activities. Health care providers shall choose a method of cost
allocation that is based on objective criteria and reasonably reflects
the eligible usage of the facilities.
[62 FR 32948, June 17, 1997, as amended at 64 FR 66787, Nov. 30, 1999;
68 FR 74502, Dec. 24, 2003; 70 FR 6372, Feb. 7, 2005; 73 FR 19438, Apr.
10, 2008]
Sec. 54.603 Competitive bid requirements.
(a) Competitive bidding requirement. 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.
(b) Posting of FCC Form 465. (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 Division. 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:
(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 Sec. 54.601(a);
(ii) The requester is physically located in a rural area, unless the
health care provider is requesting services provided under Sec. 54.621;
(iii) If the health care provider is requesting services provided
under Sec. 54.621, that the requester cannot obtain toll-free access to
an Internet service provider;
(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;
(v) The requested service or services will not be sold, resold or
transferred in consideration of money or any other thing of value; and
(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.
(2) The Rural Health Care Division shall post each FCC Form 465 that
it receives from an eligible health care provider on its website
designated for this purpose.
(3) After posting an eligible health care providers FCC Form 465 on
the Rural Health Care Corporation website, the Rural Health Care
Division 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).
(4) After selecting a telecommunications carrier, the health care
provider shall certify to the Rural Health Care Division 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
[[Page 155]]
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.
(5) The confirmation from the Rural Health Care Division shall
include the date after which the requester may sign a contract with its
chosen telecommunications carrier(s).
[62 FR 32948, June 17, 1997, as amended at 62 FR 41304, Aug. 1, 1997; 63
FR 2131, Jan. 13, 1998; 68 FR 74502, Dec. 24, 2003]
Sec. 54.604 Existing contracts.
(a) Existing contracts. A signed contract for services eligible for
support pursuant to this subpart between an eligible health care
provider as defined under Sec. 54.601 and a telecommunications carrier
shall be exempt from the competitive bid requirements set forth in Sec.
54.603(a) as follows:
(1) A contract signed on or before July 10, 1997 is exempt from the
competitive bid requirement for the life of the contract.
(2) [Reserved]
(b) For rural health care providers that take service under or
pursuant to a master contract, as defined in Sec. 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.
(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.
[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; 71 FR 65750, Nov.
9, 2006]
Sec. 54.605 Determining the urban rate.
(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 (c) 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
charged to a commercial customer for a functionally similar service in
any city with a population of 50,000 or more in that state, calculated
as if it were provided between two points within the city.
(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,'' as defined in paragraph (c) 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 charged
to a commercial customer for a functionally similar service provided
over the standard urban distance in any city with a population of 50,000
or more in that state, calculated as if the service were provided
between two points within the city.
(c) 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.
(d) 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.
[62 FR 32948, June 17, 1997, as amended at 63 FR 2131, Jan. 13, 1998; 63
FR 70572, Dec. 21, 1998; 68 FR 74502, Dec. 24, 2003]
Sec. 54.607 Determining the rural rate.
(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.
(b) If the telecommunications carrier serving the health care
provider is not
[[Page 156]]
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.
(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.
(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.
Sec. 54.609 Calculating support.
(a) Except with regard to services provided under Sec. 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 public
or non-profit 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 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. Rural health care providers may choose one
of the following two support options.
(1) Distance based support. The Administrator shall consider the
base rates for telecommunications services in rural areas to be
reasonably comparable to the base rates charged for functionally similar
telecommunications service 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:
(i) If the requested service distance is less than or equal to the
SUD for the state, the distance-based charges for the rural health care
provider are reasonably comparable to those in urban areas, so the
health care provider will not receive distance-based support.
(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 actually incurred for that service can be no higher than
the distance-based charges for a functionally similar service in any
city in that state with a population of 50,000 or more over the SUD.
(iii) ``Distance-based charges'' are charges based on a unit of
distance, such as mileage-based charges.
(iv) Except with regard to services provided under Sec. 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.
(2) Base rate support. If a telecommunications carrier, health care
provider, and/or consortium of health care providers reasonably
determines that the base rates for telecommunications services in rural
areas are not reasonably comparable to the base rates charged for
functionally similar telecommunications service in urban areas in that
state, the telecommunications carrier, health care provider,
[[Page 157]]
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 Sec. 54.605
and Sec. 54.607, and submit to the Administrator with Form 466 all of
the documentation necessary to substantiate the request.
(3) Base rate support-consortium. Except with regard to services
provided under Sec. 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 for the
health care provider's portion of the shared telecommunications
services, as well as the applicable urban base rates for the
telecommunications service.
(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.
(c) The universal service support mechanisms shall provide support
for intrastate telecommunications services, as set forth in Sec.
54.101(a), provided to rural health care providers as well as interstate
telecommunications services.
(d) Satellite services. (1) Rural public and non-profit health care
providers may receive support for rural satellite services, even when
another functionally similar terrestrial-based service is available in
that rural area. Discounts for satellite services shall be capped at the
amount the rural health care provider would have received if they
purchased a functionally similar terrestrial-based alternative.
(2) Rural health care providers seeking discounts for satellite
services shall provide to the Administrator with the Form 466
documentation of the urban and rural rates for the terrestrial-based
alternatives.
(3) Where a rural health care provider seeks a more expensive
satellite-based service when a less expensive terrestrial-based
alternative is available, the rural health care provider shall be
responsible for the additional cost.
(e) Mobile rural health care providers--(1) Calculation of support.
Mobile rural health care providers may receive discounts for satellite
services calculated by comparing the rate for the satellite service to
the rate for an urban wireline service with a similar bandwidth.
Discounts for satellite services shall not be capped at an amount of a
functionally similar wireline alternative. Where the mobile rural health
care provider provides service in more than one state, the calculation
shall be based on the urban areas in each state, proportional to the
number of locations served in each state.
(2) Documentation of support. (i) Mobile rural health care providers
shall provide to the Administrator documentation of the price of
bandwidth equivalent wireline services in the urban area in the state or
states where the service is provided. Mobile rural health care providers
shall provide to the Administrator the number of sites the mobile health
care provider will serve during the funding year.
(ii) Where a mobile rural health care provider serves less than
eight different sites per year, the mobile rural health care provider
shall provide to the Administrator documentation of the price of
bandwidth equivalent wireline services. In such case, the Administrator
shall determine on a case-by-case basis whether the telecommunications
service selected by the mobile rural health care provider is the most
cost-effective option. Where a mobile rural health care provider seeks a
more expensive satellite-based service when a less expensive wireline
alternative is most cost-effective, the mobile rural health care
provider shall be responsible for the additional cost.
[68 FR 74502, Dec. 24, 2003, as amended at 70 FR 6373, Feb. 7, 2005]
Effective Date Notes: 1. At 68 FR 74502, Dec. 24, 2003, as corrected
at 69 FR 3021, Jan. 22, 2004, Sec. 54.609 was revised, effective Jan.
23, 2004. Paragraph (d)(2) contains information collection and
recordkeeping requirements and will not become effective until approval
has been given by the Office of Management and Budget.
[[Page 158]]
2. At 70 FR 6373, Feb. 7, 2005, Sec. 54.609 was amended by adding
paragraph (e). Paragraph (e) contains information collection and
recordkeeping requirements and will not become effective until approval
has been given by the Office of Management and Budget.
Sec. 54.611 Distributing support.
(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.
(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.
(c) Any reimbursement due a carrier shall be made after the offset
is credited against that carrier's universal service obligation.
(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.
Sec. 54.613 Limitations on supported services for rural health
care providers.
(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
Sec. 54.605, at a distance not to exceed the distance between the
eligible health care provider's site and the farthest point on the
jurisdictional boundary of the city in that state with the largest
population.
(b) This section shall not affect a rural health care provider's
ability to obtain supported services under Sec. 54.621.
[64 FR 66787, NOV. 30, 1999, as amended at 68 FR 74503, Dec. 24, 2003]
Sec. 54.615 Obtaining services.
(a) Selecting a provider. In selecting a telecommunications carrier,
a health care provider shall consider all bids submitted and select the
most cost-effective alternative.
(b) Receiving supported rate. Except with regard to services
provided under Sec. 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 Sec. 54.605, subject to the limitations set forth in this Subpart.
(c) Bona fide request. 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:
(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 Sec. 54.601(a);
(2) The requester is physically located in a rural area, unless the
health care provider is requesting services provided under Sec. 54.621;
or, if the requester is a mobile rural health care provider requesting
services under Sec. 54.609(e), that the requester has certified that it
is serving eligible rural areas.
(3) If the health care provider is requesting services provided
under Sec. 54.621, that the requester cannot obtain toll-free access to
an Internet service provider;
(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;
(5) The requested service or services will not be sold, resold or
transferred in consideration of money or any other thing of value;
[[Page 159]]
(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
(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.
(d) Annual renewal. The certification set forth in paragraph (c) of
this section shall be renewed annually.
[62 FR 32948, June 17, 1997, as amended at 70 FR 6373, Feb. 7, 2005]
Sec. 54.617 Resale.
(a) Prohibition on resale. 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.
(b) Permissible fees. 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.
Sec. 54.619 Audits and recordkeeping.
(a) Health care providers. (1) Health care providers shall maintain
for their purchases of services supported under this subpart
documentation for five years from the end of the funding year sufficient
to establish compliance with all rules in this subpart. Documentation
must include, among other things, records of allocations for consortia
and entities that engage in eligible and ineligible activities, if
applicable. Mobile rural health care providers shall maintain annual
logs indicating: The date and locations of each clinic stop; and the
number of patients served at each such clinic stop.
(2) Mobile rural health care providers shall maintain its annual
logs for a period of five years. Mobile rural health care providers
shall make its logs available to the Administrator and the Commission
upon request.
(b) Production of records. 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.
(c) Random audits. Health care providers shall be subject to random
compliance audits to ensure that requesters are complying with the
certification requirements set forth in Sec. 54.615(c) and are
otherwise eligible to receive universal service support and that rates
charged comply with the statute and regulations.
(d) Service providers. Service providers shall retain documents
related to the delivery of discounted telecommunications and other
supported services for at least 5 years after the last day of the
delivery of discounted services. Any other document that demonstrates
compliance with the statutory or regulatory requirements for the rural
health care mechanism shall be retained as well.
[68 FR 74503, Dec. 24, 2003, as amended at 69 FR 12087, Mar. 15, 2004;
70 FR 6373, Feb. 7, 2005; 71 FR 13281, Mar. 15, 2006; 72 FR 54218, Sept.
24, 2007]
Sec. 54.621 Access to advanced telecommunications and information
services.
(a) Twenty-five percent of the monthly cost of eligible Internet
access shall be eligible for universal support. Health care providers
shall certify that the Internet access selected is the most cost-
effective method for their health care needs as defined in Sec.
54.615(c)(7), and that purchase of the Internet access is reasonably
related to the health care needs of the rural health care provider.
(b) 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
[[Page 160]]
connecting to an Internet service provider.
(c) Health care providers located in States that are entirely rural
shall be eligible to receive universal service support equal to 50
percent of the monthly cost of advanced telecommunications and
information services reasonably related to the health care needs of the
facility.
[68 FR 74503, Dec. 24, 2003, as amended at 70 FR 6373, Feb. 7, 2005]
Effective Date Notes: At 68 FR 74503, Dec. 24, 2003, as corrected at
69 FR 3021, Jan. 22, 2004, Sec. 54.621 was revised, effective Jan. 23,
2004. Paragraph (a) contains information collection and recordkeeping
requirements and will not become effective until approval has been given
by the Office of Management and Budget.
Sec. 54.623 Cap.
(a) Amount of the annual cap. The annual cap on federal universal
service support for health care providers shall be $400 million per
funding year, with the following exceptions.
(b) Funding year. A funding year for purposes of the health care
providers cap shall be the period July 1 through June 30.
(c) Requests. Funds shall be available as follows:
(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.
(2) [Reserved]
(3) [Reserved]
(4) The Administrator shall implement a filing period that treats
all rural health care providers filing within the period as if their
applications were simultaneously received.
(d) Annual filing requirement. Health care providers shall file new
funding requests for each funding year.
(e) Long term contracts. 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.
(f) Pro-rata reductions. 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:
(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.
(2) Administrator shall calculate the amount of support requested by
each applicant that has filed during the filing window.
(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.
[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; 70 FR 6373, Feb. 7, 2005; 71 FR 65750, Nov. 9,
2006]
Sec. 54.625 Support for services beyond the maximum supported
distance for rural health care providers.
(a) The maximum support distance is the distance from the health
care provider to the farthest point on the jurisdictional boundary of
the city in that state with the largest population, as calculated by the
Administrator.
(b) An eligible rural health care provider may purchase an eligible
telecommunications service, as defined in Sec. 54.601(c)(1) through
(c)(2), that is provided over a distance that exceeds the maximum
supported distance.
(c) If an eligible rural health care provider purchases an eligible
telecommunications service, as defined in Sec. 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.
[63 FR 2132, Jan. 13, 1998, as amended at 63 FR 70572, Dec. 21, 1998; 68
FR 74504, Dec. 24, 2003]
[[Page 161]]
Subpart H_Administration
Sec. 54.701 Administrator of universal service support mechanisms.
(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.
(b) The Administrator shall establish a nineteen (19) member Board
of Directors, as set forth in Sec. 54.703. The Administrator's Board of
Directors shall establish three Committees of the Board of Directors, as
set forth in Sec. 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.
(c)(1) The Administrator shall establish three divisions:
(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 Sec. 54.705(a);
(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 Sec. 54.705(b); and
(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, the interstate access universal service support
mechanism for price cap carriers described in subpart J of this part,
and the interstate common line support mechanism for rate-of-return
carriers described in subpart K of this part, under the direction of the
High Cost and Low Income Committee of the Board, as set forth in Sec.
54.705(c).
(2) As directed by the Committees of the Board set forth in Sec.
54.705, these divisions shall perform the duties and functions unique to
their respective support mechanisms.
(d) The Administrator shall be managed by a Chief Executive Officer,
as set forth in Sec. 54.704. The Chief Executive Officer shall serve on
the Committees of the Board established in Sec. 54.705.
[63 FR 70572, Dec. 21, 1998, as amended at 65 FR 38689, June 21, 2000;
65 FR 57739, Sept. 26, 2000; 66 FR 59727, Nov. 30, 2001; 68 FR 36943,
June 20, 2003]
Sec. 54.702 Administrator's functions and responsibilities.
(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, the interstate
access universal service support mechanism described in subpart J of
this part, and the interstate common line support mechanism described in
subpart K of this part.
(b ) The Administrator shall be responsible for billing
contributors, collecting contributions to the universal service support
mechanisms, and disbursing universal service support funds.
(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.
(d) The Administrator may advocate positions before the Commission
and its staff only on administrative matters relating to the universal
service support mechanisms.
(e) The Administrator shall maintain books of account separate from
those of the National Exchange Carrier Association, of which the
Administrator is
[[Page 162]]
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.
(f) The Administrator shall create and maintain a website, as
defined in Sec. 54.5, on which applications for services will be posted
on behalf of schools, libraries and rural health care providers.
(g) 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.
(h) 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, interstate common line support, and high-cost and
insular areas.
(i) 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.
(j) The Administrator shall provide the Commission full access to
the data collected pursuant to the administration of the universal
service support programs.
(k) Pursuant to Sec. 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.
(l) 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.
(m) 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.
(n) The Administrator shall account for the financial transactions
of the Universal Service Fund in accordance with generally accepted
accounting principles for federal agencies and maintain the accounts of
the Universal Service Fund in accordance with the United States
Government Standard General Ledger. When the Administrator, or any
independent auditor hired by the Administrator, conducts audits of the
beneficiaries of the Universal Service Fund, contributors to the
Universal Service Fund, or any other providers of services under the
universal service support mechanisms, such audits shall be conducted in
accordance with generally accepted government auditing standards. In
administering the Universal Service Fund, the Administrator shall also
comply with all relevant and applicable federal financial management and
reporting statutes.
(o) The Administrator shall provide performance measurements
pertaining to the universal service support mechanisms as requested by
the Commission by order or otherwise.
[63 FR 70573, Dec. 21, 1998, as amended at 65 FR 38690, June 21, 2000;
65 FR 57739, Sept. 26, 2000; 66 FR 59727, Nov. 30, 2001; 67 FR 11259,
Mar. 13, 2002; 69 FR 5719, Feb. 6, 2004; 72 FR 54218, Sept. 24, 2007]
[[Page 163]]
Sec. 54.703 The Administrator's Board of Directors.
(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.
(b) Board composition. The independent subsidiary's Board of
Directors shall consist of nineteen (19) directors:
(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;
(2) Two directors shall represent interexchange carriers, with one
director representing interexchange carriers with more than $3 billion
in annual operating revenues and one director representing interexchange
carriers with annual operating revenues of $3 billion or less;
(3) One director shall represent commercial mobile radio service
(CMRS) providers;
(4) One director shall represent competitive local exchange
carriers;
(5) One director shall represent cable operators;
(6) One director shall represent information service providers;
(7) Three directors shall represent schools that are eligible to
receive discounts pursuant to Sec. 54.501;
(8) One director shall represent libraries that are eligible to
receive discounts pursuant to Sec. 54.501;
(9) Two directors shall represent rural health care providers that
are eligible to receive supported services pursuant to Sec. 54.601;
(10) One director shall represent low-income consumers;
(11) One director shall represent state telecommunications
regulators;
(12) One director shall represent state consumer advocates; and
(13) The Chief Executive Officer of the Administrator.
(c) Selection process for board of directors. (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.
(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 Wireline Competition Bureau's Telecommunications Access
Policy Division.
(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.
(d) Board member terms. The directors of 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.
[[Page 164]]
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 the 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 Wireline Competition Bureau of such
vacancy, and a successor will be chosen pursuant to the nomination and
appointment process described in paragraph (c) of this section.
(e) All meetings of the Administrator's Board of Directors shall be
open to the public and held in Washington, D.C.
(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.
[63 FR 70573, Dec. 21, 1998, as amended at 67 FR 13226, Mar. 21, 2002]
Effective Date Note: At 63 FR 70573, Dec. 21, 1998, Sec. 54.703 was
revised. Paragraph (c) contains modified information collection and
recordkeeping requirements and will not become effective until approval
has been given by the Office of Management and Budget.
Sec. 54.704 The Administrator's Chief Executive Officer.
(a) Chief Executive Officer's functions. (1) The Chief Executive
Officer shall have management responsibility for the administration of
the federal universal service support mechanisms.
(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 Sec. 54.701(g).
(3) The Chief Executive Officer shall serve on the Administrator's
Board of Directors as set forth in Sec. 54.703(b) and on the Committees
of the Board established under Sec. 54.705.
(b) Selection process for the Chief Executive Officer. (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.
(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.
(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.
[63 FR 70574, Dec. 21, 1998]
Sec. 54.705 Committees of the Administrator's Board of Directors.
(a) Schools and Libraries Committee--(1) Committee functions. 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:
(i) How the Administrator projects demand for the schools and
libraries support mechanism;
(ii) Development of applications and associated instructions as
needed for the schools and libraries support mechanism;
(iii) Administration of the application process, including
activities to ensure compliance with Federal Communications Commission
rules and regulations;
(iv) Performance of outreach and education functions;
(v) Review of bills for services that are submitted by schools and
libraries;
(vi) Monitoring demand for the purpose of determining when the $2
billion trigger has been reached;
[[Page 165]]
(vii) Implementation of the rules of priority in accordance with
Sec. 54.507(g) of this chapter;
(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;
(ix) The classification of schools and libraries as urban or rural
and the use of the discount matrix established in Sec. 54.505(c) of
this chapter to set the discount rate to be applied to services
purchased by eligible schools and libraries;
(x) Performance of audits of beneficiaries under the schools and
libraries support mechanism; and
(xi) Development and implementation of other functions unique to the
schools and libraries support mechanism.
(2) Committee composition. The Schools and Libraries Committee shall
consist of the following members of the Administrator's Board of
Directors:
(i) Three school representatives;
(ii) One library representative;
(iii) One service provider representative;
(iv) One at-large representative elected by the Administrator's
Board of Directors; and
(v) The Administrator's Chief Executive Officer.
(b) Rural Health Care Committee--(1) Committee functions. 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:
(i) How the Administrator projects demand for the rural health care
support mechanism;
(ii) Development of applications and associated instructions as
needed for the rural health care support mechanism;
(iii) Administration of the application process, including
activities to ensure compliance with Federal Communications Commission
rules and regulations;
(iv) Calculation of support levels under Sec. 54.609;
(v) Performance of outreach and education functions;
(vi) Review of bills for services that are submitted by rural health
care providers;
(vii) Monitoring demand for the purpose of determining when the $400
million cap has been reached;
(viii) Performance of audits of beneficiaries under the rural health
care support mechanism; and
(ix) Development and implementation of other functions unique to the
rural health care support mechanism.
(2) Committee composition. The Rural Health Care Committee shall
consist of the following members of the Administrator's Board of
Directors:
(i) Two rural health care representatives;
(ii) One service provider representative;
(iii) Two at-large representatives elected by the Administrator's
Board of Directors;
(iv) One State telecommunications regulator, one state consumer
advocate; and
(v) The Administrator's Chief Executive Officer.
(c) High Cost and Low Income Committee--(1) Committee functions. The
High Cost and Low Income Committee shall oversee the administration of
the high cost and low income support mechanisms, the interstate access
universal service support mechanism for price cap carriers described in
subpart J of this part, and the interstate common line support mechanism
for rate-of-return carriers described in subpart K 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:
(i) How the Administrator projects demand for the high cost, low
income, interstate access universal service, and interstate common line
support mechanisms;
(ii) Development of applications and associated instructions as
needed for the high cost, low income, interstate access universal
service, and interstate common line support mechanisms;
(iii) Administration of the application process, including
activities to ensure compliance with Federal Communications Commission
rules and regulations;
[[Page 166]]
(iv) Performance of audits of beneficiaries under the high cost, low
income, interstate access universal service and interstate common line
support mechanisms; and
(v) Development and implementation of other functions unique to the
high cost, low income, interstate access universal service and
interstate common line support mechanisms.
(d) Binding Authority of Committees of the Board. (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.
(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, as defined in the Administrator's by-laws.
[63 FR 70574, Dec. 21, 1998, as amended at 65 FR 38690, June 21, 2000;
65 FR 57739, Sept. 26, 2000; 66 FR 59728, Nov. 30, 2001]
Sec. 54.706 Contributions.
(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 mechanisms. Certain other providers of
interstate telecommunications, such as payphone providers that are
aggregators, providers of interstate telecommunications for a fee on a
non-common carrier basis, and interconnected VoIP providers, also must
contribute to the universal service support mechanisms. Interstate
telecommunications include, but are not limited to:
(1) Cellular telephone and paging services;
(2) Mobile radio services;
(3) Operator services;
(4) Personal communications services (PCS);
(5) Access to interexchange service;
(6) Special access service;
(7) WATS;
(8) Toll-free service;
(9) 900 service;
(10) Message telephone service (MTS);
(11) Private line service;
(12) Telex;
(13) Telegraph;
(14) Video services;
(15) Satellite service;
(16) Resale of interstate services;
(17) Payphone services; and
(18) Interconnected VoIP services.
(19) Prepaid calling card providers.
(b) Except as provided in paragraph (c) of this section, every
entity required to contribute to the federal universal service support
mechanisms under paragraph (a) of this section shall contribute on the
basis of its projected collected interstate and international end-user
telecommunications revenues, net of projected contributions.
(c) Any entity required to contribute to the federal universal
service support mechanisms whose projected collected interstate end-user
telecommunications revenues comprise less than 12 percent of its
combined projected collected interstate and international end-user
telecommunications revenues shall contribute based only on such entity's
projected collected interstate end-user telecommunications revenues, net
of projected contributions. For purposes of this paragraph, an
``entity'' shall refer to the entity that is subject to the universal
service reporting requirements in Sec. 54.711 and shall include all of
that entity's affiliated providers of interstate and international
telecommunications and telecommunications services.
(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
[[Page 167]]
providers; broadcasters; systems integrators that derive less than five
percent of their systems integration revenues from the resale of
telecommunications. Prepaid calling card providers are not required to
contribute on the basis of revenues derived from prepaid calling cards
sold by, to, or pursuant to contract with the Department of Defense
(DoD) or a DoD entity.
(e) Any entity required to contribute to the federal universal
service support mechanisms shall retain, for at least five years from
the date of the contribution, all records that may be required to
demonstrate to auditors that the contributions made were in compliance
with the Commission's universal service rules. These records shall
include without limitation the following: Financial statements and
supporting documentation; accounting records; historical customer
records; general ledgers; and any other relevant documentation. This
document retention requirement also applies to any contractor or
consultant working on behalf of the contributor.
[63 FR 70575, Dec. 21, 1998, as amended at 64 FR 60358, Nov. 5, 1999; 67
FR 11260, Mar. 13, 2002; 67 FR 79532, Dec. 30, 2002; 71 FR 38796, July
10, 2006; 71 FR 43673, Aug. 2, 2006; 72 FR 54218, Sept. 24, 2007]