[Title 47 CFR ]
[Code of Federal Regulations (annual edition) - October 1, 2001 Edition]
[From the U.S. Government Printing Office]
[[Page i]]
47
Parts 40 to 69
Revised as of October 1, 2001
Telecommunication
Containing a codification of documents
of general applicability and future effect
As of October 1, 2001
With Ancillaries
Published by
Office of the Federal Register
National Archives and Records
Administration
A Special Edition of the Federal Register
[[Page ii]]
U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON : 2001
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[[Page iii]]
Table of Contents
Page
Explanation................................................. v
Title 47:
Chapter I--Federal Communications Commission
(Continued) 3
Finding Aids:
Material Approved for Incorporation by Reference........ 397
Table of CFR Titles and Chapters........................ 399
Alphabetical List of Agencies Appearing in the CFR...... 417
Table of OMB Control Numbers............................ 427
List of CFR Sections Affected........................... 437
[[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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EFFECTIVE AND EXPIRATION DATES
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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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OBSOLETE PROVISIONS
Provisions that become obsolete before the revision date stated on
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INCORPORATION BY REFERENCE
What is incorporation by reference? Incorporation by reference was
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This material, like any other properly issued regulation, has the force
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What is a proper incorporation by reference? The Director of the
Federal Register will approve an incorporation by reference only when
the requirements of 1 CFR part 51 are met. Some of the elements on which
approval is based are:
(a) The incorporation will substantially reduce the volume of
material published in the Federal Register.
(b) The matter incorporated is in fact available to the extent
necessary to afford fairness and uniformity in the administrative
process.
(c) The incorporating document is drafted and submitted for
publication in accordance with 1 CFR part 51.
Properly approved incorporations by reference in this volume are
listed in the Finding Aids at the end of this volume.
What if the material incorporated by reference cannot be found? If
you have any problem locating or obtaining a copy of material listed in
the Finding Aids of this volume as an approved incorporation by
reference, please contact the agency that issued the regulation
containing that incorporation. If, after contacting the agency, you find
the material is not available, please notify the Director of the Federal
Register, National Archives and Records Administration, Washington DC
20408, or call (202) 523-4534.
CFR INDEXES AND TABULAR GUIDES
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The Federal Register Index is issued monthly in cumulative form.
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the daily Federal Register.
A List of CFR Sections Affected (LSA) is published monthly, keyed to
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, 2001.
[[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, chapter I--Federal
Communications Commission. The last volume, part 80 to End, also
includes chapter II--Office of Science and Technology Policy and
National Security Council, and chapter III--National Telecommunications
and Information Administration, Department of Commerce. The contents of
these volumes represent all current regulations codified under this
title of the CFR as of October 1, 2001.
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.
A redesignation table appears in the Finding Aids section of the
volume containing part 80 to End.
[[Page x]]
[[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
42 Preservation of records of communication
common carriers......................... 5
43 Reports of communication common carriers and
certain affiliates...................... 7
51 Interconnection............................. 16
52 Numbering................................... 62
53 Special provisions concerning Bell operating
companies............................... 87
54 Universal service........................... 92
59 Infrastructure sharing...................... 156
61 Tariffs..................................... 157
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......... 198
64 Miscellaneous rules relating to common
carriers................................ 231
65 Interstate rate of return prescription
procedures and methodologies............ 307
68 Connection of terminal equipment to the
telephone network....................... 316
69 Access charges.............................. 350
Cross Reference:
Excise taxes on communications services and facilities: Internal
Revenue, 26 CFR Part 49.
Supplemental 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)
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 they may be
readily identified and made available to representatives of the
Commission.
[[Page 6]]
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
service information only about its international common carrier service
offerings and only for those routes on
[[Page 7]]
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 Annual reports of carriers and certain 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]
43.81 Reports of carriers owned by foreign telecommunications entities.
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 Secs. 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)) or commercial mobile radio
service (CMRS) providers offering mobile telephony (as defined in
section 20.15(b)(1) of this chapter), which provide at least 10,000
voice-grade equivalent lines or wireless channels or have at least
10,000 end-user consumers in a given state, shall file with the
Commission a completed FCC Form 477, in accordance with the Commission's
rules and the instructions to the FCC Form 477, for each state in which
they exceed this threshold.
(b) Respondents identified in paragraph (a) of this section shall
file the FCC Form 477 on diskette or via e-mail, as directed in the
instructions to the FCC Form 477. Upon submission of each report, an
original certification letter (as contained in the instructions to FCC
Form 477) signed by the responsible official shall be mailed to the
Commission.
(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 Common Carrier Bureau may release provider-specific
information to a state commission, provided that the state commission
has protections in place that would preclude disclosure of any
confidential information.
(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]
Sec. 43.21 Annual reports of carriers and certain 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.
(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
[[Page 9]]
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 local exchange carrier with annual operating reveunes equal
to or above the indexed revenue threshold shall file, no later than
April 1 of each year, reports showing:
(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 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 local exchange carrier for whom price cap regulation is
mandatory and every local exchange carrier that elects to be covered by
the price cap rules shall file, by April 1 of each year, a report
designed to capture trends in service quality under price cap
regulation. The report shall contain data relative to network measures
of service quality, as defined by the Common Carrier Bureau, from the
previous calendar year on a study area basis.
(h) Each local exchange carrier for whom price regulation is
mandatory shall file, by April 1 of each year, a report designed to
capture trends in service quality under price cap regulation. The report
shall contain data relative to customer measures of service quality, as
defined by the Common Carrier Bureau, from the previous calendar year on
a study area basis.
(i) Each local exchange carrier for whom price regulation is
mandatory shall file, by April 1 of each year, a report containing data
from the previous calendar year on a study area basis that are designed
to capture trends in telephone industry infrastructure development under
price cap regulation.
(j) Each local exchange carrier with annual operating revenues that
equal or exceed the indexed revenue threshold shall file, no later than
April 1 of
[[Page 10]]
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]
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 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
Secs. 61.41 through 61.49 of this chapter, is
[[Page 11]]
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 Secs. 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
Secs. 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]
Effective Date Note: At 65 FR 18931, Apr. 10, 2000, Sec. 43.43 was
amended by revising paragraphs (c) and (e). These paragraphs contain
information collection requirements and will not become effective until
approval by the Office of Management and Budget.
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 agreement which is also subject to
[[Page 12]]
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, 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 international routes included in the contract, or
(3) A carrier that has been classified as dominant for any service
on any of the 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.
(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 an international private
line to the U.S. public switched network, at its switch, including any
switch in which the carrier obtains capacity either through lease or
otherwise, shall file annually with the Chief of the International
Bureau a certified statement containing the number and type (e.g., a 64-
kbps circuit) of private lines interconnected in such a manner. The
certified statement shall specify the number and type of interconnected
private lines on a country specific basis. The identity of the customer
need not be reported, and the Commission will treat the country of
origin information as confidential. Carriers need not file their
contracts for such interconnections, unless they are specifically
requested to do so. These reports shall be filed on a consolidated basis
on February 1 (covering international private lines interconnected
during the preceding January 1 to December 31 period) of each year.
International private lines to countries for which the Commission has
authorized the provision of switched basic services over private lines
at any time during a particular reporting period are exempt from this
requirement.
(e) International settlements policy. (1) Except as provided in
paragraph (e)(3) of this section, if a 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 and the
terms and conditions of such agreement relating to the exchange of
services, interchange or routing of traffic and matters concerning
rates, accounting rates, division of tolls, the allocation of return
traffic, or the basis of settlement of traffic balances, are not
identical to the equivalent terms and conditions in the operating
agreement of another carrier providing the same or similar service
between the United States and the same foreign point, the carrier must
also file with the International Bureau a modification request under
Sec. 64.1001 of this chapter. Unless a carrier is providing switched
voice, telex, telegraph, or packet-switched service on a route that is
exempt from the international settlements policy, the carrier shall not
bargain for or
[[Page 13]]
agree to accept more than its proportionate share of return traffic.
(2) Except as provided in paragraph (e)(3) of this section, 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 other carriers
provide the same or similar service to the same foreign point, and the
amendment relates to the exchange of services, interchange or routing of
traffic and matters concerning rates, accounting rates, division of
tolls, the allocation of return traffic, or the basis of settlement of
traffic balances, the carrier must also file with the International
Bureau a modification request under Sec. 64.1001 of this Chapter.
(3) A carrier that enters into an operating or other agreement with
a foreign carrier for the provision of a common carrier service on an
international route is not subject to the requirements of paragraphs
(e)(1) and (2) of this section if the route appears on the Commission's
list of international routes that the Commission has exempted from the
international settlements policy.
Note to Sec. 43.51 (e)(3): The Commission's list of international
routes exempted from the international settlements policy is available
from the International Bureau's World Wide Web site at http://
www.fcc.gov/ib. A party that seeks to add a foreign market to the list
of markets that are exempt from the international settlements policy
must show that U.S. carriers are able to terminate at least 50 percent
of U.S.-billed traffic in the foreign market at rates that are at least
25 percent below the benchmark settlement rate adopted for that country
in IB Docket No. 96-261, Report and Order, 12 FCC Rcd 19,806, 62 FR
45758, Aug. 29, 1997. A party that seeks to remove a foreign market from
the list of markets that are exempt from the international settlements
policy must show that U.S. carriers are unable to terminate at least 50
percent of U.S.-billed traffic in the foreign market at rates that are
at least 25 percent below the benchmark settlement rate adopted for that
country in IB Docket No. 96-261.
(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
[[Page 14]]
the route or that it nevertheless has sufficient market power to affect
competition adversely in the U.S. market.
[66 FR 16879, Mar. 28, 2001]
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 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. In addition, it shall include the number of minutes of outbound
and inbound traffic settled pursuant to each alternative arrangement
entered into pursuant to Sec. 64.1002 of this chapter.
(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, Common Carrier 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
[[Page 15]]
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 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. 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]
Sec. 43.72 [Reserved]
Sec. 43.81 Reports of carriers owned by foreign telecommunications entities.
(a) The following carriers are required to file with the Commission
an annual revenue and traffic report in triplicate with respect to all
common carrier telecommunications services they offer within the United
States.
(1) Cable and Wireless Communications, Inc.;
(2) FTCC Communications Inc.; and
(3) Consortium Communications International, Inc.
(b) The Chief, International Bureau has the authority to require
that no more than six additional communications carriers owned by
foreign telecommunications entities that are classified as dominant for
the provision of international telecommunications services originating
or terminating in the United States file Sec. 43.81 reports.
(c) The report should be captioned--Sec. 43.81 report and should
provide the following:
(1) Revenues, number of messages and number of minutes for message
telephone service traffic originated and/or terminated by the filing
carrier;
(2) Revenues, number of messages, and number of minutes for telex
traffic originated and/or terminated by the filing carrier;
(3) Revenues, number of messages, and number of minutes for
telegraph traffic originated and/or terminated by the filing carrier;
(4) Revenues, number of messages, and number of minutes for any
other basic switched services (specified by service) originated and/or
terminated by the filing carrier; and
(5) Number of leases and revenues from private line services
provided by the filing carrier.
(d) Section 43.81 Reports for:
[[Page 16]]
(1) The calendar year 1988 must be filed on or before August 1,
1989;
(2) The calendar year 1989 must be filed on or before August 1,
1990; and
(3) The calendar year 1990 must be filed on or before August 1,
1991.
(e) These reports shall apply to nine or fewer persons and therefore
are not subject to the review of the Office of Management and Budget
under the Paperwork Reduction Act.
[54 FR 2130, Jan. 19, 1989, as amended at 60 FR 5333, Jan. 27, 1995]
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.
51.211 Toll dialing parity implementation schedule.
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.
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.
51.317 Standards for requiring the unbundling of network elements.
51.319 Specific unbundling requirements.
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.
[[Page 17]]
51.331 Notice of network changes: Timing of notice.
51.333 Notice of network changes: Short term notice.
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,
271, 332, 48 Stat. 1070, as amended, 1077; 47 U.S.C. Secs. 151-55, 157,
201-05, 207-09, 218, 225-27, 251-54, 271, 332, 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.
[[Page 18]]
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.
Commercial Mobile Radio Service (CMRS). CMRS has the same meaning as
that term is defined in Sec. 20.3 of this chapter.
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.
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.
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,
[[Page 19]]
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.
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.
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.
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 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,
[[Page 20]]
as provided in this part, for the equipment necessary for
interconnection or access to unbundled elements, allocated on a first-
come, first-served basis.
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 regulatory jurisdiction with respect to intrastate operations of
carriers. As referenced in this part, this term may include the
Commission if it assumes the responsibility of the state commission,
pursuant to section 252(e)(5) of the Act. This term shall also include
any person or persons to whom the
[[Page 21]]
state commission has delegated its authority under section 251 and 252
of the Act.
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 providing dialing parity, or nondiscriminatory
access to operator services or directory assistance.
Virtual collocation. Virtual collocation is an offering by an
incumbent LEC that enables a requesting telecommunications carrier to:
[[Page 22]]
(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.
[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]
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 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
[[Page 23]]
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. 51.211 Toll dialing parity implementation schedule.
(a) A LEC that does not begin providing in-region, interLATA or in-
region, interstate toll services in a state before February 8, 1999,
must implement intraLATA and interLATA toll dialing parity throughout
that state on February 8, 1999 or an earlier date as the state may
determine, consistent with section 271(e)(2)(B) of the Communications
Act of 1934, as amended, to be in the public interest.
(b) A Bell Operating Company (BOC) that provides in-region,
interLATA toll services in a state before February 8, 1999 shall provide
intraLATA toll dialing parity throughout that state coincident with its
provision of in-region, interLATA toll services.
(c) A LEC that is not a BOC that begins providing in-region,
interLATA or in-region, interstate toll services in a state before
August 8, 1997, shall implement intraLATA and interLATA toll dialing
parity throughout that state by August 8, 1997. If the LEC is unable to
comply with the August 8, 1997 implementation deadline, the LEC must
notify the Commission's Common Carrier Bureau by May 8, 1997. In the
notification, the LEC must state its justification for noncompliance and
must set forth the date by which it proposes to implement intraLATA and
interLATA toll dialing parity.
(d) A LEC that is not a BOC that begins providing in-region,
interLATA or in-region, interstate toll services in a state on or after
August 8, 1997, but before February 8, 1999 shall implement intraLATA
and interLATA toll dialing parity throughout that state no later than
the date on which it begins providing in-region, interLATA or in-region,
interstate toll services.
(e) Notwithstanding the requirements of paragraphs (a) through (d)
of this section, a LEC shall implement toll dialing parity under a state
order as described below:
(1) If the state issued a dialing parity order by December 19, 1995
requiring a BOC to implement toll dialing parity in advance of the dates
established by these rules, the BOC must implement toll dialing parity
in accordance with the implementation dates established by the state
order.
(2) If the state issued a dialing parity order by August 8, 1996
requiring a LEC that is not a BOC to implement toll dialing parity in
advance of the dates established by these rules, the LEC must implement
toll dialing parity in accordance with the implementation dates
established by the state order.
(f) For LECs that are not Bell Operating Companies, the term in-
region, interLATA toll service, as used in this section and Sec. 51.213,
includes the provision of toll services outside of the LEC's study area.
[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
[[Page 24]]
intraLATA and interLATA toll dialing parity under this subpart.
(c) A LEC must file its implementation plan with the state
commission for each state in which the LEC provides telephone exchange
service, except that if a LEC determines that a state commission has
elected not to review the plan or will not complete its review in
sufficient time for the LEC to meet the toll dialing parity
implementation deadlines in Sec. 51.211, the LEC must file its plan with
the Commission:
(1) No later than 180 days before the date on which the LEC will
begin providing toll dialing parity in the state, or no later than 180
days before February 8, 1999, whichever occurs first; or
(2) For LECs that begin providing in-region, interLATA or in-region,
interstate toll service (see Sec. 51.211(f)) before August 8, 1997, no
later than December 5, 1996.
(d) The Commission will release a public notice of any LEC
implementation plan that is filed with the Commission under paragraph
(c) of this section.
(1) The LEC's plan will be deemed approved on the fifteenth day
following release of the Commission's public notice unless, no later
than the fourteenth day following the release of the Commission's public
notice; either
(i) The Common Carrier Bureau notifies the LEC that its plan will
not be deemed approved on the fifteenth day; or
(ii) An opposition to the plan is filed with the Commission and
served on the LEC that filed the plan. Such an opposition must state
specific reasons why the LEC's plan does not serve the public interest.
(2) If one or more oppositions are filed, the LEC that filed the
plan will have seven additional days (i.e., until no later than the
twenty-first day following the release of the Commission's public
notice) within which to file a reply to the opposition(s) and serve it
on all parties that filed an opposition. The response shall:
(i) Include information responsive to the allegations and concerns
identified by the opposing party; and
(ii) Identify possible revisions to the plan that will address the
opposing party's concerns.
(3) If a LEC's plan is opposed under paragraph (d)(1)(ii) of this
section, the Common Carrier Bureau will act on the plan within ninety
days of the date on which the Commission released its public notice. In
the event the Bureau fails to act within ninety days, the plan will not
go into effect pending Bureau action. If the plan is not opposed, but it
did not go into effect on the fifteenth day following the release of the
Commission's public notice (see paragraph (d)(1)(i) of this section),
and the Common Carrier Bureau fails to act on the plan within ninety
days of the date on which the Commission released its public notice, the
plan will be deemed approved without further Commission action on the
ninety-first day after the date on which the Commission released its
public notice of the plan's filing.
[61 FR 47349, Sept. 6, 1996]
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:
[[Page 25]]
(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 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
[[Page 26]]
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, 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
[[Page 27]]
(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 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.
[[Page 28]]
(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 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 a requesting telecommunications carrier to furnish
cost data that would be relevant to setting rates if the parties were in
arbitration.
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
[[Page 29]]
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 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, except as provided in paragraph (4) of this section. At a
minimum, this requires an incumbent LEC to design interconnection
facilities to meet the same technical criteria and service standards
that are used within the incumbent LEC's network. This obligation is not
limited to a consideration of service quality as perceived by end users,
and includes, but is not limited to, service quality as perceived by the
requesting telecommunications carrier;
(4) That, if so requested by a telecommunications carrier and to the
extent technically feasible, is superior in quality to that provided by
the incumbent LEC to itself or to any subsidiary, affiliate, or any
other party to which the incumbent LEC provides interconnection. Nothing
in this section prohibits an incumbent LEC from providing
interconnection that is lesser in quality at the sole request of the
requesting telecommunications carrier; and
(5) On terms and conditions that are just, reasonable, and
nondiscriminatory in accordance with the terms and conditions of any
agreement, the requirements of sections 251 and 252 of the Act, and the
Commission's rules including, but not limited to, offering such terms
and conditions equally to all requesting telecommunications carriers,
and offering such terms and conditions that are no less favorable than
the terms and conditions upon which the incumbent LEC provides such
interconnection to itself. This includes, but is not limited to, the
time within which the incumbent LEC provides such interconnection.
(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.
[[Page 30]]
(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]
Sec. 51.307 Duty to provide access on an unbundled basis to network elements.
(a) An incumbent LEC shall provide, to a requesting
telecommunications carrier for the provision of a telecommunications
service, nondiscriminatory access to network elements on an unbundled
basis at any technically feasible point on terms and conditions that are
just, reasonable, and nondiscriminatory in accordance with the terms and
conditions of any agreement, the requirements of sections 251 and 252 of
the Act, and the Commission's rules.
(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) An incumbent LEC shall not impose limitations, restrictions, or
requirements on requests for, or the use of, unbundled network elements
that would impair the ability of a requesting telecommunications carrier
to offer a telecommunications service in the manner the requesting
telecommunications carrier intends.
(b) A telecommunications carrier purchasing access to an unbundled
network element may use such network element to provide exchange access
services to itself in order to provide interexchange services to
subscribers.
(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.
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, except as provided in paragraph (c) of this
section.
[[Page 31]]
(b) Except as provided in paragraph (c) of this section, to the
extent technically feasible, the quality of an unbundled network
element, as well as the quality of the access to such unbundled network
element, that an incumbent LEC provides to a requesting
telecommunications carrier shall be at least equal in quality to that
which the incumbent LEC provides to itself. If an incumbent LEC fails to
meet this requirement, the incumbent LEC must prove to the state
commission that it is not technically feasible to provide the requested
unbundled network element, or to provide access to the requested
unbundled network element, at a level of quality that is equal to that
which the incumbent LEC provides to itself.
(c) To the extent technically feasible, the quality of an unbundled
network element, as well as the quality of the access to such unbundled
network element, that an incumbent LEC provides to a requesting
telecommunications carrier shall, upon request, be superior in quality
to that which the incumbent LEC provides to itself. If an incumbent LEC
fails to meet this requirement, the incumbent LEC must prove to the
state commission that it is not technically feasible to provide the
requested unbundled network element or access to such unbundled network
element at the requested level of quality that is superior to that which
the incumbent LEC provides to itself. Nothing in this section prohibits
an incumbent LEC from providing interconnection that is lesser in
quality at the sole request of the requesting telecommunications
carrier.
(d) Previous successful access to an unbundled element at a
particular point in a network, using particular facilities, is
substantial evidence that access is technically feasible at that point,
or at substantially similar points, in networks employing substantially
similar facilities. Adherence to the same interface or protocol
standards shall constitute evidence of the substantial similarity of
network facilities.
(e) Previous successful provision of access to an unbundled element
at a particular point in a network at a particular level of quality is
substantial evidence that access is technically feasible at that point,
or at substantially similar points, at that level of quality.
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 is:
(1) Technically feasible; and
(2) Would not impair the ability of other carriers to obtain access
to unbundled network elements or to interconnect with the incumbent
LEC's network.
[[Page 32]]
(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 elements
pursuant to paragraph (c)(2) of this section must prove to the state
commission that the requested combination would impair the ability of
other carriers to obtain access to unbundled network elements or to
interconnect with the incumbent LEC's network.
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
carrier or acquiring an alternative from a third-party supplier, lack of
access to the network element precludes a requesting telecommunications
carrier from providing the services that it seeks to offer. If access is
``necessary,'' then, subject to any consideration of the factors set
forth under paragraph (c) of this section, the Commission may require
the unbundling of such proprietary network element.
(2) In the event that such access is not ``necessary,'' the
Commission may require unbundling subject to any consideration of the
factors set forth under paragraph (c) of this section if it is
determined that:
(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
carrier's services; or
(iii) Lack of access to such element would jeopardize the goals of
the 1996 Act.
(b) Non-proprietary network elements. The Commission shall undertake
the following analysis to determine whether a non-proprietary network
element should be made available for purposes of section 251(c)(3) of
the Act:
(1) Determine whether lack of access to a non-proprietary network
element ``impairs'' a carrier's ability to provide the service it seeks
to offer. A requesting carrier's ability to provide service is
``impaired'' if, taking into consideration the availability of
alternative elements outside the incumbent LEC's network, including
self-provisioning by a requesting carrier or acquiring an alternative
from a third-party supplier, lack of access to that element materially
diminishes a requesting carrier's ability to provide the services it
seeks to offer. The Commission will consider the totality of the
circumstances to determine whether an alternative to the incumbent LEC's
network element is available in such a manner that a requesting carrier
can provide service using the alternative. If the Commission determines
that lack of access to an element ``impairs'' a requesting carrier's
ability to provide service, it may require the unbundling of that
element, subject to any consideration of the factors set forth under
section 51.317(c).
(2) In considering whether lack of access to a network element
materially diminishes a requesting carrier's ability to provide service,
the Commission shall consider the extent to which alternatives in the
market are available as a practical, economic, and operational matter.
The Commission will rely upon the following factors to determine whether
alternative network
[[Page 33]]
elements are available as a practical, economic, and operational matter:
(i) Cost, including all costs that requesting carriers may incur
when using the alternative element to provide the services it seeks to
offer;
(ii) Timeliness, including the time associated with entering a
market as well as the time to expand service to more customers;
(iii) Quality;
(iv) Ubiquity, including whether the alternatives are available
ubiquitously;
(v) Impact on network operations.
(3) In determining whether to require the unbundling of any network
element under this rule, the Commission may also consider the following
additional factors:
(i) Whether unbundling of a network element promotes the rapid
introduction of competition;
(ii) Whether unbundling of a network element promotes facilities-
based competition, investment, and innovation;
(iii) Whether unbundling of a network element promotes reduced
regulation;
(iv) Whether unbundling of a network element provides certainty to
requesting carriers regarding the availability of the element;
(v) Whether unbundling of a network element is administratively
practical to apply.
(4) If an incumbent LEC is required to provide nondiscriminatory
access to a network element in accordance with Sec. 51.311 and section
251(c)(3) of the Act under Sec. 51.319 of this section or any applicable
Commission Order, no state commission shall have authority to determine
that such access is not required. A state commission must comply with
the standards set forth in this Sec. 51.317 when considering whether to
require the unbundling of additional network elements. With respect to
any network element which a state commission has required to be
unbundled under this Sec. 51.317, the state commission retains the
authority to subsequently determine, in accordance with the requirements
of this rule, that such network element need no longer be unbundled.
[65 FR 2551, Jan. 18, 2000]
Sec. 51.319 Specific unbundling requirements.
(a) Local loop and subloop. An incumbent LEC shall provide
nondiscriminatory access, in accordance with Sec. 51.311 and section
251(c)(3) of the Act, to the local loop and subloop, including inside
wiring owned by the incumbent LEC, on an unbundled basis to any
requesting telecommunications carrier for the provision of a
telecommunications service.
(1) Local loop. The local loop network element is defined as a
transmission facility between a distribution frame (or its equivalent)
in an incumbent LEC central office and the loop demarcation point at an
end-user customer premises, including inside wire owned by the incumbent
LEC. The local loop network element includes all features, functions,
and capabilities of such transmission facility. Those features,
functions, and capabilities include, but are not limited to, dark fiber,
attached electronics (except those electronics used for the provision of
advanced services, such as Digital Subscriber Line Access Multiplexers),
and line conditioning. The local loop includes, but is not limited to,
DS1, DS3, fiber, and other high capacity loops. The requirements in this
section relating to dark fiber are not effective until May 17, 2000.
(2) Subloop. The subloop network element is defined as any portion
of the loop that is technically feasible to access at terminals in the
incumbent LEC's outside plant, including inside wire. An accessible
terminal is any point on the loop where technicians can access the wire
or fiber within the cable without removing a splice case to reach the
wire or fiber within. Such points may include, but are not limited to,
the pole or pedestal, the network interface device, the minimum point of
entry, the single point of interconnection, the main distribution frame,
the remote terminal, and the feeder/distribution interface. The
requirements in this section relating to subloops and inside wire are
not effective until May 17, 2000.
(i) Inside wire. Inside wire is defined as all loop plant owned by
the incumbent LEC on end-user customer premises as far as the point of
demarcation
[[Page 34]]
as defined in Sec. 68.3 of this chapter, including the loop plant near
the end-user customer premises. Carriers may access the inside wire
subloop at any technically feasible point including, but not limited to,
the network interface device, the minimum point of entry, the single
point of interconnection, the pedestal, or the pole.
(ii) Technical feasibility. If parties are unable to reach
agreement, pursuant to voluntary negotiations, as to whether it is
technically feasible, or whether sufficient space is available, to
unbundle the subloop at the point where a carrier requests, the
incumbent LEC shall have the burden of demonstrating to the state,
pursuant to state arbitration proceedings under section 252 of the Act,
that there is not sufficient space available, or that it is not
technically feasible, to unbundle the subloop at the point requested.
(iii) Best practices. Once one state has determined that it is
technically feasible to unbundle subloops at a designated point, an
incumbent LEC in any state shall have the burden of demonstrating,
pursuant to state arbitration proceedings under section 252 of the Act,
that it is not technically feasible, or that sufficient space is not
available, to unbundle its own loops at such a point.
(iv) Rules for collocation. Access to the subloop is subject to the
Commission's collocation rules at Secs. 51.321 through 51.323.
(v) Single point of interconnection. The incumbent LEC shall provide
a single point of interconnection at multi-unit premises that is
suitable for use by multiple carriers. This obligation is in addition to
the incumbent LEC's obligation to provide nondiscriminatory access to
subloops at any technically feasible point. If parties are unable to
negotiate terms and conditions regarding a single point of
interconnection, issues in dispute, including compensation of the
incumbent LEC under forward-looking pricing principles, shall be
resolved under the dispute resolution processes in section 252 of the
Act.
(3) Line conditioning. The incumbent LEC shall condition lines
required to be unbundled under this section wherever a competitor
requests, whether or not the incumbent LEC offers advanced services to
the end-user customer on that loop.
(i) Line conditioning is defined as the removal from the loop of any
devices that may diminish the capability of the loop to deliver high-
speed switched wireline telecommunications capability, including xDSL
service. Such devices include, but are not limited to, bridge taps, low
pass filters, and range extenders.
(ii) Incumbent LECs shall recover the cost of line conditioning from
the requesting telecommunications carrier in accordance with the
Commission's forward-looking pricing principles promulgated pursuant to
section 252(d)(1) of the Act.
(iii) Incumbent LECs shall recover the cost of line conditioning
from the requesting telecommunications carrier in compliance with rules
governing nonrecurring costs in Sec. 51.507 (e).
(iv) In so far as it is technically feasible, the incumbent LEC
shall test and report trouble for all the features, functions, and
capabilities of conditioned lines, and may not restrict testing to
voice-transmission only.
(b) Network interface device. An incumbent LEC shall provide
nondiscriminatory access, in accordance with Sec. 51.311 and section
251(c)(3) of the Act, to the network interface device on an unbundled
basis to any requesting telecommunications carrier for the provision of
a telecommunications service. The network interface device network
element is defined as any means of interconnection of end-user customer
premises wiring to the incumbent LEC's distribution plant, such as a
cross connect device used for that purpose. An incumbent LEC shall
permit a requesting telecommunications carrier to connect its own loop
facilities to on-premises wiring through the incumbent LEC's network
interface device, or at any other technically feasible point.
(c) Switching capability. An incumbent LEC shall provide
nondiscriminatory access, in accordance with Sec. 51.311 and section
251(c)(3) of the Act, to local circuit switching capability and local
tandem switching capability on an unbundled basis, except as set forth
in
[[Page 35]]
Sec. 51.319(c)(2), to any requesting telecommunications carrier for the
provision of a telecommunications service. An incumbent LEC shall be
required to provide nondiscriminatory access in accordance with
Sec. 51.311 and section 251(c)(3) of the Act to packet switching
capability on an unbundled basis to any requesting telecommunications
carrier for the provision of a telecommunications service only in the
limited circumstance described in Sec. 51.319(c)(4).
(1) Local circuit switching capability, including tandem switching
capability. The local circuit switching capability network element is
defined as:
(i) Line-side facilities, which include, but are not limited to, the
connection between a loop termination at a main distribution frame and a
switch line card;
(ii) Trunk-side facilities, which include, but are not limited to,
the connection between trunk termination at a trunk-side cross-connect
panel and a switch trunk card; and
(iii) All features, functions and capabilities of the switch, which
include, but are not limited to:
(A) The basic switching function of connecting lines to lines, lines
to trunks, trunks to lines, and trunks to trunks, as well as the same
basic capabilities made available to the incumbent LEC's customers, such
as a telephone number, white page listing and dial tone, and
(B) All other features that the switch is capable of providing,
including but not limited to, customer calling, customer local area
signaling service features, and Centrex, as well as any technically
feasible customized routing functions provided by the switch.
(2) Notwithstanding the incumbent LEC's general duty to unbundle
local circuit switching, an incumbent LEC shall not be required to
unbundle local circuit switching for requesting telecommunications
carriers when the requesting telecommunications carrier serves end-users
with four or more voice grade (DS0) equivalents or lines, provided that
the incumbent LEC provides nondiscriminatory access to combinations of
unbundled loops and transport (also known as the ``Enhanced Extended
Link'') throughout Density Zone 1, and the incumbent LEC's local circuit
switches are located in:
(i) The top 50 Metropolitan Statistical Areas as set forth in
Appendix B of the Third Report and Order and Fourth Further Notice of
Proposed Rulemaking in CC Docket No. 96-98, and
(ii) In Density Zone 1, as defined in Sec. 69.123 of this chapter on
January 1, 1999.
(3) Local tandem switching capability. The tandem switching
capability network element is defined as:
(i) Trunk-connect facilities, which include, but are not limited to,
the connection between trunk termination at a cross connect panel and
switch trunk card;
(ii) The basic switch trunk function of connecting trunks to trunks;
and
(iii) The functions that are centralized in tandem switches (as
distinguished from separate end office switches), including but not
limited, to call recording, the routing of calls to operator services,
and signaling conversion features.
(4) Packet switching capability. (i) The packet switching capability
network element is defined as the basic packet switching function of
routing or forwarding packets, frames, cells or other data units based
on address or other routing information contained in the packets,
frames, cells or other data units, and the functions that are performed
by Digital Subscriber Line Access Multiplexers, including but not
limited to:
(ii) The ability to terminate copper customer loops (which includes
both a low band voice channel and a high-band data channel, or solely a
data channel);
(iii) The ability to forward the voice channels, if present, to a
circuit switch or multiple circuit switches;
(iv) The ability to extract data units from the data channels on the
loops, and
(v) The ability to combine data units from multiple loops onto one
or more trunks connecting to a packet switch or packet switches.
(5) An incumbent LEC shall be required to provide nondiscriminatory
access to unbundled packet switching
[[Page 36]]
capability only where each of the following conditions are satisfied.
The requirements in this section relating to packet switching are not
effective until May 17, 2000.
(i) The incumbent LEC has deployed digital loop carrier systems,
including but not limited to, integrated digital loop carrier or
universal digital loop carrier systems; or has deployed any other system
in which fiber optic facilities replace copper facilities in the
distribution section (e.g., end office to remote terminal, pedestal or
environmentally controlled vault);
(ii) There are no spare copper loops capable of supporting xDSL
services the requesting carrier seeks to offer;
(iii) The incumbent LEC has not permitted a requesting carrier to
deploy a Digital Subscriber Line Access mulltiplexer in the remote
terminal, pedestal or environmentally controlled vault or other
interconnection point, nor has the requesting carrier obtained a virtual
collocation arrangement at these subloop interconnection points as
defined by paragraph (b) of this section; and
(iv) The incumbent LEC has deployed packet switching capability for
its own use.
(d) Interoffice transmission facilities. An incumbent LEC shall
provide nondiscriminatory access, in accordance with Sec. 51.311 and
section 251(c)(3) of the Act, to interoffice transmission facilities on
an unbundled basis to any requesting telecommunications carrier for the
provision of a telecommunications service. The requirements in this
section relating to dark fiber transport are not effective until May 17,
2000.
(1) Interoffice transmission facility network elements include:
(i) Dedicated transport, defined as incumbent LEC transmission
facilities, including all technically feasible capacity-related services
including, but not limited to, DS1, DS3 and OCn levels, dedicated to a
particular customer or carrier, that provide telecommunications between
wire centers owned by incumbent LECs or requesting telecommunications
carriers, or between switches owned by incumbent LECs or requesting
telecommunications carriers;
(ii) Dark fiber transport, defined as incumbent LEC optical
transmission facilities without attached multiplexing, aggregation or
other electronics;
(iii) Shared transport, defined as transmission facilities shared by
more than one carrier, including the incumbent LEC, between end office
switches, between end office switches and tandem switches, and between
tandem switches, in the incumbent LEC network.
(2) The incumbent LEC shall:
(i) Provide a requesting telecommunications carrier exclusive use of
interoffice transmission facilities dedicated to a particular customer
or carrier, or use the features, functions, and capabilities of
interoffice transmission facilities shared by more than one customer or
carrier.
(ii) Provide all technically feasible transmission facilities,
features, functions, and capabilities that the requesting
telecommunications carrier could use to provide telecommunications
services;
(iii) Permit, to the extent technically feasible, a requesting
telecommunications carrier to connect such interoffice facilities to
equipment designated by the requesting telecommunications carrier,
including but not limited to, the requesting telecommunications
carrier's collocated facilities; and
(iv) Permit, to the extent technically feasible, a requesting
telecommunications carrier to obtain the functionality provided by the
incumbent LEC's digital cross-connect systems in the same manner that
the incumbent LEC provides such functionality to interexchange carriers.
(e) Signaling networks and call-related databases. An incumbent LEC
shall provide nondiscriminatory access, in accordance with Sec. 51.311
and section 251(c)(3) of the Act, to signaling networks, call-related
databases, and service management systems on an unbundled basis to any
requesting telecommunications carrier for the provision of a
telecommunications service.
(1) Signaling networks. Signaling networks include, but are not
limited to,
[[Page 37]]
signaling links and signaling transfer points.
(i) When a requesting telecommunications carrier purchases unbundled
switching capability from an incumbent LEC, the incumbent LEC shall
provide access from that switch in the same manner in which it obtains
such access itself.
(ii) An incumbent LEC shall provide a requesting telecommunications
carrier with its own switching facilities access to the incumbent LEC's
signaling network for each of the requesting telecommunications
carrier's switches. This connection shall be made in the same manner as
an incumbent LEC connects one of its own switches to a signaling
transfer point.
(2) 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.
(i) For purposes of switch query and database response through a
signaling network, an incumbent LEC shall provide access to its call-
related databases, including but not limited to, the Calling Name
Database, 911 Database, E911 Database, Line Information Database, Toll
Free Calling Database, Advanced Intelligent Network Databases, and
downstream number portability databases by means of physical access at
the signaling transfer point linked to the unbundled databases. The
requirements in this section relating to the Calling Name Database, 911
Database, and E911 Database are not effective until May 17, 2000.
(ii) Notwithstanding the incumbent LEC's general duty to unbundle
call-related databases, an incumbent LEC shall not be required to
unbundle the services created in the AIN platform and architecture that
qualify for proprietary treatment.
(iii) An incumbent LEC shall allow a requesting telecommunications
carrier that has purchased an incumbent LEC's local switching capability
to use the incumbent LEC's service control point element in the same
manner, and via the same signaling links, as the incumbent LEC itself.
(iv) An incumbent LEC shall allow a requesting telecommunications
carrier that has deployed its own switch, and has linked that switch to
an incumbent LEC's signaling system, to gain access to the incumbent
LEC's service control point in a manner that allows the requesting
carrier to provide any call-related database-supported services to
customers served by the requesting telecommunications carrier's switch.
(v) An incumbent LEC shall provide a requesting telecommunications
carrier with access to call-related databases in a manner that complies
with section 222 of the Act.
(3) Service management systems:
(i) A service management system is defined as a computer database or
system not part of the public switched network that, among other things:
(A) Interconnects to the service control point and sends to that
service control point the information and call processing instructions
needed for a network switch to process and complete a telephone call;
and
(B) Provides telecommunications carriers with the capability of
entering and storing data regarding the processing and completing of a
telephone call.
(ii) An incumbent LEC shall provide a requesting telecommunications
carrier with the information necessary to enter correctly, or format for
entry, the information relevant for input into the incumbent LEC's
service management system.
(iii) An incumbent LEC shall provide a requesting telecommunications
carrier the same access to design, create, test, and deploy Advanced
Intelligent Network-based services at the service management system,
through a service creation environment, that the incumbent LEC provides
to itself.
(iv) An incumbent LEC shall provide a requesting telecommunications
carrier access to service management systems in a manner that complies
with section 222 of the Act.
(f) Operator services and directory assistance. An incumbent LEC
shall provide nondiscriminatory access in accordance with Sec. 51.311
and section 251(c)(3) of the Act to operator services and directory
assistance on an
[[Page 38]]
unbundled basis to any requesting telecommunications carrier for the
provision of a telecommunications service only where the incumbent LEC
does not provide the requesting telecommunications carrier with
customized routing or a compatible signaling protocol. Operator services
are any automatic or live assistance to a consumer to arrange for
billing or completion, or both, of a telephone call. Directory
assistance is a service that allows subscribers to retrieve telephone
numbers of other subscribers.
(g) Operations support systems. An incumbent LEC shall provide
nondiscriminatory access in accordance with Sec. 51.311 and section
251(c)(3) of the Act to operations support systems on an unbundled basis
to any requesting telecommunications carrier for the provision of a
telecommunications service. Operations support system functions consist
of pre-ordering, ordering, provisioning, maintenance and repair, and
billing functions supported by an incumbent LEC's databases and
information. An incumbent LEC, as part of its duty to provide access to
the pre-ordering function, must provide the requesting carrier with
nondiscriminatory access to the same detailed information about the loop
that is available to the incumbent LEC. The requirements in this section
relating to loop qualification information are not effective until May
17, 2000.
(h) High frequency portion of the loop.
(1) The high frequency portion of the loop network element is
defined as the frequency range above the voiceband on a copper loop
facility that is being used to carry analog circuit-switched voiceband
transmissions.
(2) An incumbent LEC shall provide nondiscriminatory access in
accordance with Sec. 51.311 of these rules and section 251(c)(3) of the
Act to the high frequency portion of a loop to any requesting
telecommunications carrier for the provision of a telecommunications
service conforming with Sec. 51.230 of these rules.
(3) An incumbent LEC shall only provide a requesting carrier with
access to the high frequency portion of the loop if the incumbent LEC is
providing, and continues to provide, analog circuit-switched voiceband
services on the particular loop for which the requesting carrier seeks
access.
(4) Control of the loop and splitter functionality. In situations
where a requesting carrier is obtaining access to the high frequency
portion of the loop, the incumbent LEC may maintain control over the
loop and splitter equipment and functions, and shall provide to
requesting carriers loop and splitter functionality that is compatible
with any transmission technology that the requesting carrier seeks to
deploy using the high frequency portion of the loop, as defined in this
subsection, provided that such transmission technology is presumed to be
deployable pursuant to Sec. 51.230.
(5) Loop conditioning. (i) An incumbent LEC must condition loops to
enable requesting carriers to access the high frequency portion of the
loop spectrum, in accordance with Secs. 51.319(a)(3), and 51.319(h)(1).
If the incumbent LEC seeks compensation from the requesting carrier for
line conditioning, the requesting carrier has the option of refusing, in
whole, or in part, to have the line conditioned, and a requesting
carrier's refusal of some or all aspects of line conditioning will not
diminish its right of access to the high frequency portion of the loop.
(ii) Where conditioning the loop will significantly degrade, as
defined in Sec. 51.233, the voiceband services that the incumbent LEC is
currently providing over that loop, the incumbent LEC must either:
(A) Locate another loop that has been or can be conditioned, migrate
the incumbent LEC's voiceband service to that loop, and provide the
requesting carrier with access to the high frequency portion of the
alternative loop; or
(B) Make a showing to the relevant state commission that the
original loop cannot be conditioned without significantly degrading
voiceband services on that loop, as defined in Sec. 51.233, and that
there is no adjacent or alternative loop available that can be
conditioned or to which the customer's voiceband service can be moved to
enable line sharing.
(iii) If the relevant State commission concludes that a loop cannot
be conditioned without significantly degrading
[[Page 39]]
the voiceband service, the incumbent LEC cannot then or subsequently
condition that loop to provide advanced services to its own customers
without first making available to any requesting carrier the high
frequency portion of the newly-conditioned loop.
(6) Digital loop carrier systems. Incumbent LECs must provide to
requesting carriers unbundled access to the high frequency portion of
the loop at the remote terminal as well as the central office, pursuant
to Sec. 51.319(a)(2) and Sec. 51.319(h)(1).
(7) Maintenance, repair, and testing. (i) Incumbent LECs must
provide, on a nondiscriminatory basis, physical loop test access points
to requesting carriers at the splitter, through a cross-connection to
the competitor's collocation space, or through a standardized interface,
such as an intermediate distribution frame or a test access server, for
the purposes of loop testing, maintenance, and repair activities.
(ii) An incumbent seeking to utilize an alternative physical access
methodology may request approval to do so from the relevant state
commission, but must show that the proposed alternative method is
reasonable, nondiscriminatory, and will not disadvantage a requesting
carrier's ability to perform loop or service testing, maintenance or
repair.
[65 FR 2551, Jan. 18, 2000; 65 FR 19334, Apr. 11, 2000]
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 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
[[Page 40]]
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 Secs. 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.
(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
[[Page 41]]
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 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
[[Page 42]]
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.
(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
[[Page 43]]
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;
(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
[[Page 44]]
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 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
[[Page 45]]
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.
(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
Secs. 51.325 through 51.335, an incumbent LEC may not disclose to
separate affiliates, separated affiliates, or unaffiliated entities
(including actual or potential competing service providers or
competitors), information about planned network changes that are subject
to this section.
(d) For the purposes of Secs. 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]
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
[[Page 46]]
(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 Secs. 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.
(3) In addition, one paper copy and one diskette copy must be sent
to the ``Chief, Network Services Division, Common Carrier Bureau,
Federal Communications Commission, Washington, DC 20554.'' The diskette
copy must be on a standard 3\1/2\ inch diskette, formatted in IBM-
compatible format to be readable by high-density floppy drives operating
under MS DOS 5.X or later compatible versions, and shall be in a word-
processing format designated, from time-to-time, in public notices
released by the Network Services Division. The diskette must be
submitted in ``read only'' mode, and must be clearly labeled with the
carrier's name, the filing date, and an identification of the diskette's
contents.
[61 FR 47351, Sept. 6, 1996]
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 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.
[61 FR 47352, Sept. 6, 1996]
[[Page 47]]
Sec. 51.333 Notice of network changes: Short term notice.
(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 such short term notice filings. Short term notices shall be deemed
final on the tenth business day after the release of the Commission's
public notice, unless an objection is filed, pursuant to paragraph (c)
of this section.
(c) Objection procedures. An objection to an incumbent LEC's short
term notice may be filed by an information service provider or
telecommunication service provider that directly interconnects with the
incumbent LEC's network. Such objections must be filed with the
Commission, and served on the incumbent LEC, no later than the ninth
business day following the release of the Commission's public notice.
All objections to an incumbent LEC's short term notice must:
(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, Network Services Division, Common
Carrier 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
[[Page 48]]
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).
[61 FR 47352, Sept. 6, 1996]
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.
[[Page 49]]
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.
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 Secs. 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 Secs. 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
[[Page 50]]
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 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.
[[Page 51]]
(a) Local loops. Loop 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 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.
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 Secs. 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 Secs. 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.)
[[Page 52]]
Table
------------------------------------------------------------------------
Proxy
State ceiling
------------------------------------------------------------------------
Alabama....................................................... $17.25
Arizona....................................................... 12.85
Arkansas...................................................... 21.18
California.................................................... 11.10
Colorado...................................................... 14.97
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 Secs. 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 Secs. 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
[[Page 53]]
in the interstate expanded interconnection tariff. To the extent that
the incumbent LEC does not offer a comparable form of collocation in its
interstate expanded interconnection tariffs, a state commission may, in
its discretion, establish a proxy-based rate, provided that the state
commission sets forth in writing a reasonable basis for concluding that
its rate would approximate the result of a forward-looking economic cost
study, as described in 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) Neither the interstate access charges described in part 69 of
this chapter nor comparable intrastate access charges shall be assessed
by an incumbent LEC on purchasers of elements that offer telephone
exchange or exchange access services.
(b) Notwithstanding Secs. 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 interstate minutes of
use traversing such unbundled local switching elements, the carrier
common line charge described in Sec. 69.105 of this chapter, and a
charge equal to 75% of the interconnection charge described in
Sec. 69.124 of this chapter, only until the earliest of the following,
and not thereafter:
(1) June 30, 1997;
(2) The later of the effective date of a final Commission decision
in CC Docket No. 96-45, Federal-State Joint Board on Universal Service,
or the effective date of a final Commission decision in a proceeding to
consider reform of the interstate access charges described in part 69;
or
(3) With respect to a Bell operating company only, the date on which
that company is authorized to offer in-region interLATA service in a
state pursuant to section 271 of the Act. The end date for Bell
operating companies that are authorized to offer interLATA service shall
apply only to the recovery of access charges in those states in which
the Bell operating company is authorized to offer such service.
(c) Notwithstanding Secs. 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]
[[Page 54]]
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
Secs. 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 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), 6612 (sales), 6613
[[Page 55]]
(product advertising), 6621 (call completion services), 6622 (number
services), and 6623 (customer services) (Secs. 32.6611, 32.6612,
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), 6711, 6712, 6721-
6728 (corporate operations expenses), and 5301 (telecommunications
uncollectibles) (Secs. 32.6121-32.6124, 32.6711, 32.6712, 32.6721-
32.6728, and 32.5301 of this chapter); and
(3) Not include plant-specific expenses and plant non-specific
expenses, other than general support expenses (Secs. 32.6110-32.6116,
32.6210-32.6565 of this chapter).
(d) Costs included in accounts 6611-6613 and 6621-6623 described in
paragraph (c) of this section (Secs. 32.6611-32.6613 and 32.6621-32.6623
of this chapter) may be included in wholesale rates only to the extent
that the incumbent LEC proves to a state commission that specific costs
in these accounts will be incurred and are not avoidable with respect to
services sold at wholesale, or that specific costs in these accounts are
not included in the retail prices of resold services. Costs included in
accounts 6110-6116 and 6210-6565 described in paragraph (c) of this
section (Secs. 32.6110-32.6116, 32.6210-32.6565 of this chapter) may be
treated as avoided retail costs, and excluded from wholesale rates, only
to the extent that a party proves to a state commission that specific
costs in these accounts can reasonably be avoided when an incumbent LEC
provides a telecommunications service for resale to a requesting
carrier.
(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 be used in lieu of the specific USOA accounts listed in
paragraphs (c) and (d) of this section.
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
[[Page 56]]
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 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
[[Page 57]]
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 Secs. 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 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
Secs. 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 Secs. 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 Secs. 51.507 and 51.509.
[[Page 58]]
(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 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
Secs. 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 Secs. 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
[[Page 59]]
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 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
[[Page 60]]
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;
(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.
[[Page 61]]
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 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 provisions 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 individual
interconnection, service, or network element arrangement contained in
any agreement to
[[Page 62]]
which it is a party that is approved by a state commission pursuant to
section 252 of the Act, upon the same rates, terms, and conditions as
those provided in the agreement. An incumbent LEC may not limit the
availability of any individual interconnection, service, or network
element only to those requesting carriers serving a comparable class of
subscribers or providing the same service (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 interconnection, service, or
element to the requesting telecommunications carrier are greater than
the costs of providing it to the telecommunications carrier that
originally negotiated the agreement, or
(2) The provision of a particular interconnection, service, or
element to the requesting carrier is not technically feasible.
(c) Individual interconnection, service, or network element
arrangements shall remain available for use by telecommunications
carriers pursuant to this section for a reasonable period of time after
the approved agreement is available for public inspection under section
252(f) of the Act.
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.
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.
52.27 Deployment of transitional measures for number portability.
52.29 Cost recovery for transitional measures for number portability.
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.
52.34-52.99 [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: Sec. 1, 2, 4, 5, 48 Stat. 1066, as amended; 47 U.S.C.
Sec. 151, 152, 154, 155 unless otherwise noted. Interpret or apply secs.
3, 4, 201-05, 207-09, 218, 225-7, 251-2, 271 and 332, 48 Stat. 1070, as
amended, 1077; 47 U.S.C. 153, 154, 201-05, 207-09, 218, 225-7, 251-2,
271 and 332 unless otherwise noted.
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.
[[Page 63]]
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 Anguilla, Antigua, Bahamas,
Barbados, Bermuda, British Virgin Islands, Canada, Cayman Islands,
Dominica, Dominican Republic, Grenada, Jamaica, Montserrat, St. Kitts &
Nevis, St. Lucia, St. Vincent, Turks & Caicos Islands, Trinidad &
Tobago, and the United States (including Puerto Rico, the U.S. Virgin
Islands, Guam and the Commonwealth of the Northern Mariana Islands).
(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]
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
[[Page 64]]
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.
(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
[[Page 65]]
written report summarizing the recommendation and the reasons therefore;
(d) Recommending to the Commission an appropriate entity to serve as
the NANPA;
(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]
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. ``Affiliate'' is a person who controls,
is controlled by, or is under the direct or indirect common control with
another person. A person shall be deemed to control another if such
person possesses, directly or indirectly--
(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).
[[Page 66]]
(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
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.
[[Page 67]]
(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]
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 industry'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, all of which may be
modified by industry fora or other appropriate authority;
(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 Secs. 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);
[[Page 68]]
(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 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 and the Central Office Code Utilization Survey
(COCUS);
(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.
[[Page 69]]
(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]
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) Contributing to the CO Code Use Survey (COCUS), an annual survey
that describes the present and projected use of CO codes for each NPA in
the NANP;
(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) Any telecommunications carrier performing central office code
administration:
(1) Shall not charge fees for the assignment or use of central
office codes to other telecommunications carriers, including paging and
CMRS providers, unless the telecommunications carrier assigning the
central office code charges one uniform fee for all carriers, including
itself and its affiliates; and
(2) Shall, consistent with this subpart, apply identical standards
and procedures for processing all central office code assignment
requests, and for assigning such codes, regardless of the identity of
the telecommunications carrier making the request.
(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 at 47 CFR chapter I. Subject to the approval of
the Commission, the NANPA shall develop a transition plan to transfer CO
code assignment from the current administrators to itself and shall
submit this plan to the Commission within 90 days of the effective date
of a Commission order announcing the selection of the NANPA. The NANPA
shall complete the transfer of CO code assignment functions from
existing administrators to itself no more than 18 months after the NANPA
has assumed all of said administrators' current NANPA function.
(e) The new NANPA shall perform the numbering administration
functions currently performed by Bellcore, and the CO code
administration functions currently performed by the eleven CO code
administrators, at the price agreed to at the time of its selection. The
new NANPA may request from
[[Page 70]]
NANC, with subsequent approval by the Commission, an adjustment in this
price if the actual number of CO Code assignments made per year, the
number of NPAs requiring relief per year or the number of NPA relief
meetings per NPA exceeds 120% of the NANPA's stated assumptions for the
tasks at the time of its selection.
(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 360 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.
(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
[[Page 71]]
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
Common Carrier 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) 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.
[[Page 72]]
(4) State access to applications. State commissions shall have
access to service provider's applications for numbering resources. 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 Common Carrier 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 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
[[Page 73]]
with Commission regulations and applicable industry guidelines relating
to numbering administration.
(2) All telecommunications service providers shall be prepared to
demonstrate compliance with Commission regulations and applicable
industry guidelines at all times. Service providers shall be prepared to
demonstrate compliance with Commission regulations and applicable
industry guidelines at all times. Service providers found to be in
violation of Commission regulations and applicable industry guidelines
relating to numbering administration may be subject to enforcement
action.
[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]
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
Common Carrier Bureau, the B & C Agent may share data obtained from
carriers with the administrators of the universal service support
mechanism (See 47 CFR 54.701 of this chapter), the TRS Fund (See 47 CFR
64.604(c)(4)(iii)(H) of this chapter), and the local number portability
cost recovery (See 47 CFR 52.32). The B & C Agent shall keep
confidential all data obtained from other administrators. The B & C
Agent shall use such data, from carriers or administrators, only for
calculating, collecting and verifying payments. The Commission shall
have access to all data reported to the Administrator. Contributors may
make requests for Commission 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.
[62 FR 55183, Oct. 23, 1997, as amended at 64 FR 41330, July 30, 1999;
66 FR 9532, Feb. 8, 2001]
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
[[Page 74]]
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.
[64 FR 41331, July 30, 1999]
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, 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 area code overlay, which occurs when a new area code is
introduced to serve the same geographic area as an existing area code,
subject to the following conditions:
(i) No area code overlay may be implemented unless all central
office codes in the new overlay area code are assigned to those entities
requesting assignment on a first-come, first-serve basis, regardless of
the identity of, technology used by, or type of service provided by that
entity. No group of
[[Page 75]]
telecommunications carriers shall be excluded from assignment of central
office codes in the existing area code, or be assigned such codes only
from the overlay area code, based solely on that group's provision of a
specific type of telecommunications service or use of a particular
technology; and,
(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.
[61 FR 47353, Sept. 6, 1996, as amended at 64 FR 63617, Nov. 16, 1998;
64 FR 62984, Nov. 18, 1999]
Subpart C--Number Portability
Source: 61 FR 38637, July 25, 1996, unless otherwise noted.
Redesignated at 61 FR 47353, Sept. 6, 1996.
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 capable of providing local
number portability (LNP) must participate in thousands-block number
pooling where it is implemented and consistent with the national
thousands-block number pooling framework established by the Commission.
(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]
Sec. 52.21 Definitions.
As used in this subpart:
(a) The term broadband PCS has the same meaning as that term is
defined in Sec. 24.5 of this chapter.
(b) The term cellular service has the same meaning as that term is
defined in Sec. 22.99 of this chapter.
(c) 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.
(d) The term database method means a number portability method that
utilizes one or more external databases for providing called party
routing information.
(e) 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.
(f) The term incumbent wide area SMR licensee has the same meaning
as that term is defined in Sec. 20.3 of this chapter.
(g) 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
[[Page 76]]
commercial mobile service under 47 U.S.C. 332(c).
(h) 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.
(i) 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.
(j) The term long-term database method means a database method that
complies with the performance criteria set forth in Sec. 52.3(a).
(k) 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.
(l) 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.
(m) 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.
(n) 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.
(o) 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.
(p) 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.
(q) 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.
[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]
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, operator and directory assistance
services, and intercept capabilities;
(2) Efficiently uses numbering resources;
(3) Does not require end users to change their telecommunications
numbers;
[[Page 77]]
(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) by
December 31, 1998, in accordance with the deployment schedule set forth
in the Appendix to this part, in switches for which another carrier has
made a specific request for the provision of number portability, subject
to paragraph (b)(2) of this section.
(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;
(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, Common Carrier Bureau, shall monitor the progress of
[[Page 78]]
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.
[61 FR 38637, July 25, 1996, as amended at 62 FR 18294, Apr. 15, 1997]
Effective Date Note: At 62 FR 18294, Apr. 15, 1997, Sec. 52.23 was
amended by removing paragraph (a)(9) and revising paragraphs (a)(4)
through (a)(8) and paragraphs (b) and (g). These paragraphs contain
information collection and recordkeeping requirements and will not
become effective until approval has been given by the Office of
Management and Budget.
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 Common
Carrier Bureau and NANC that it plans to implement a state-specific
database within 60 days from the release date of the Public Notice
issued by the Chief, Common Carrier Bureau, identifying the
administrator selected by the NANC and the proposed locations of the
regional databases. Carriers may challenge a state's decision to opt out
of the regional database system by filing a petition with the
Commission.
(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.
(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.
[[Page 79]]
Sec. 52.26 NANC Recommendations on Local Number Portability Administration.
(a) Local number portability administration shall comply with the
recommendations of the North American Numbering Council (NANC) as set
forth in the report to the Commission prepared by the NANC's Local
Number Portability Administration Selection Working Group, dated April
25, 1997 (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 of the Working Group Report is
not incorporated herein.
(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 Common Carrier Bureau as a
recommendation for Commission review. The Chief of the Common Carrier
Bureau will place the NANC's proposed resolution on public notice.
Recommendations adopted by the NANC and forwarded to the Bureau may be
implemented by the parties pending review of the recommendation. Within
90 days of the conclusion of the comment cycle, the Chief of the Common
Carrier Bureau may issue an order adopting, modifying, or rejecting the
recommendation. If the Chief does not act within 90 days of the
conclusion of the comment cycle, the recommendation will be deemed to
have been adopted by the Bureau.
(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, International Transcription
Service, Inc., 1231 20th St., N.W., Washington, D.C. 20036, and can be
inspected during normal business hours at the following locations;
Reference Information Center, 445 12th Street, SW., Room CY--A257,
Washington, D.C. 20554 or at the Office of the Federal Register, 800
North Capitol Street, N.W., Suite 700, Washington, D.C. The Working
Group Report and its appendices are also available in the Internet at
http://www.fcc.gov/ccb/Nanc/.
[62 FR 48786, Sept. 17, 1997, as amended at 65 FR 58466, Sept. 29, 2000]
Sec. 52.27 Deployment of transitional measures for number portability.
(a) All LECs shall provide transitional number portability measures,
as defined in section 52.21(q) of this chapter, 47 CFR 52.21(q), as soon
as reasonably possible upon receipt of a specific request from another
telecommunications carrier, until such time as the LEC implements a
long-term database method for number portability in that area.
(b) A LEC must provide the particular transitional number
portability
[[Page 80]]
measure requested by a telecommunications carrier, except as set forth
in paragraph (c) of this section.
(c) A LEC that does not provide a requested transitional number
portability measure must demonstrate that provision of the requested
transitional number portability measure either is not technically
feasible or if technically feasible, is unduly burdensome.
(1) Previous successful provision of a particular transitional
number portability measure by any LEC constitutes substantial evidence
that the particular method is technically feasible.
(2) In determining whether provision of a transitional number
portability measure is unduly burdensome, relevant factors to consider
are the extent of network upgrades needed to provide that particular
method, the cost of such upgrades, the business needs of the requesting
carrier, and the timetable for deployment of a long-term number
portability method in that particular geographic location.
(d) LECs must discontinue using transitional number portability
measures in areas where a long-term number portability method has been
implemented.
[63 FR 68203, Dec. 10, 1998]
Sec. 52.29 Cost recovery for transitional measures for number portability.
Any cost recovery mechanism for the provision of number portability
pursuant to Sec. 52.7(a), that is adopted by a state commission must
not:
(a) Give one telecommunications carrier an appreciable, incremental
cost advantage over another telecommunications carrier, when competing
for a specific subscriber (i.e., the recovery mechanism may not have a
disparate effect on the incremental costs of competing carriers seeking
to serve the same customer); or
(b) Have a disparate effect on the ability of competing
telecommunications carriers to earn a normal return on their investment.
Sec. 52.31 Deployment of long-term database methods for number portability by CMRS providers.
(a) By November 24, 2002, all covered CMRS providers must provide a
long-term database method for number portability, including the ability
to support roaming, in the MSAs identified in the Appendix to this part
in compliance with the performance criteria set forth in section
52.23(a) of this part, in switches for which another carrier has made a
specific request for the provision of number portability, subject to
paragraph (a)(1) of this section. A licensee may have more than one CMRS
system, but only the systems that satisfy the definition of covered CMRS
are required to provide number portability.
(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) For the MSAs identified in the appendix to this part, carriers
must submit requests for deployment by February 24, 2002;
(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, 2002, a covered CMRS provider must deploy
additional switches serving the MSAs identified in the Appendix to this
part upon request within the following time frames:
(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
[[Page 81]]
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) The Chief, Wireless Telecommunications Bureau, may waive or stay
any of the dates in the implementation schedule, as the Chief determines
is necessary to ensure the efficient development of number portability,
for a period not to exceed 9 months (i.e., no later than September 30,
1999, for the deadline in paragraph (b) of this section, and no later
than March 31, 2000, for the deadline in paragraph (a) of this section).
(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:
(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]
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
[[Page 82]]
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 Common Carrier Bureau may waive,
reduce, modify, or eliminate contributor reporting requirements that
prove unnecessary and require additional reporting requirements that the
Bureau deems necessary to the sound and efficient administration of
long-term number portability.
(c) Local number portability administrators shall keep all data
obtained from contributors confidential and shall not disclose such data
in company-specific form unless directed to do so by the Commission.
Subject to any restrictions imposed by the Chief of the Common Carrier
Bureau, the local number portability administrators may share data
obtained from carriers with the administrators of the universal service
support mechanism (See 47 CFR 54.701 of this chapter), the TRS Fund (See
47 CFR 64.604(c)(4)(iii)(H) of this chapter), and the North American
Numbering Plan cost recovery (See 47 CFR 52.16). The local number
portability administrators shall keep confidential all data obtained
from other administrators. The 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.
[63 FR 35160, June 29, 1998, as amended at 64 FR 41331, July 30, 1999]
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), and a number portability query-service
charge, as specified in paragraph (a)(2).
(1) The monthly number-portability charge may take effect no earlier
than February 1, 1999, on a date the incumbent local exchange carrier
selects, and may end no later than five years after that date.
(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
[[Page 83]]
the Communications Act, and resellers of the incumbent local exchange
carrier's local service, the same charges as described in paragraph
(a)(1)(A) of this section, as if the incumbent local exchange carrier
were serving those carriers' end users.
(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 to carriers on a prearranged
and default basis.
(b) All telecommunications carriers other than incumbent local
exchange carriers may recover their number portability costs in any
manner consistent with applicable state and federal laws and
regulations.
[63 FR 35161, June 29, 1998]
Effective Date Note: 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.
Secs. 52.34-52.99 [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.
[[Page 84]]
(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.
(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.
[[Page 85]]
(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 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 Common Carrier Bureau shall modify the quantity of numbers a
Responsible Organization may have in reserve status or the percentage of
numbers in the spare poll that a Responsible Organization may reserve
when exigent circumstances make such action necessary. The Common
Carrier Bureau shall establish, modify, and monitor toll free number
conservation plans when exigent circumstances necessitate such action.
[[Page 86]]
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]
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
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
[[Page 87]]
New Haven, CT................................................. 91
Omaha, NE..................................................... 75
Albuquerque, NM............................................... 76
Tacoma, WA.................................................... 77
[62 FR 18295, Apr. 15, 1997]
Effective Date Note: At 62 FR 18295, Apr. 15, 1997, the appendix to
part 52 was revised. This appendix contains information collection and
recordkeeping requirements and will not become effective until approval
has been given by the Office of Management and Budget.
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
53.101 Joint marketing of local and long distance services by interLATA
carriers.
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,
[[Page 88]]
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.
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
Sec. 53.101 Joint marketing of local and long distance services by interLATA carriers.
(a) Until a BOC is authorized pursuant to section 271(d) of the Act
to provide interLATA services in an in-region State, or until February
8, 1999, whichever is earlier, a telecommunications carrier that serves
greater than 5 percent of the Nation's presubscribed access lines may
not jointly market in such State telephone exchange service obtained
from such company pursuant to section 251(c)(4) of the Act with
interLATA services offered by that telecommunications carrier.
(b) For purposes of applying section 271(e) of the Act,
telecommunications carriers described in paragraph (a) of this section
may not:
(1) Market interLATA services and BOC resold local exchange services
through a ``single transaction.'' For purposes of this section, we
define a ``single transaction'' to include the use of the same sales
agent to market both products to the same customer during a single
communication;
(2) Offer interLATA services and BOC resold local exchange services
as a bundled package under an integrated pricing schedule.
[[Page 89]]
(c) If a telecommunications carrier described in paragraph (a) of
this section advertises the availability of interLATA services and local
exchange services purchased from a BOC for resale in a single
advertisement, such telecommunications carrier shall not mislead the
public by stating or implying that such carrier may offer bundled
packages of interLATA service and BOC local exchange service purchased
for resale, or that it can provide both services through a single
transaction.
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. (1) A section 272 affiliate and the
BOC of which it is an affiliate shall not jointly own transmission and
switching facilities or the land and buildings where those facilities
are located.
(2) A section 272 affiliate shall not perform any operating,
installation, or maintenance functions associated with facilities owned
by the BOC of which it is an affiliate.
(3) A BOC or BOC affiliate, other than the section 272 affiliate
itself, shall not perform any operating, installation, or maintenance
functions associated with facilities that the BOC's section 272
affiliate owns or leases from a provider other than the BOC.
(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 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.
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 is
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
[[Page 90]]
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 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, Common Carrier Bureau, shall work with the regulatory
agencies in the states having jurisdiction over the Bell operating
company's local telephone services, to attempt to form a Federal/State
joint audit team with the responsibility for overseeing the planning of
the audit as specified in 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, Common Carrier Bureau, shall establish an FCC audit team to
oversee and direct the independent
[[Page 91]]
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]
Sec. 53.211 Audit planning.
(a) Before selecting a independent auditor, the Bell operating
company shall submit preliminary audit requirements, including the
proposed scope of the audit and the extent of compliance and substantive
testing, to the Federal/State joint audit team organized pursuant to
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, Common Carrier Bureau, any accounting or
rule interpretations necessary to complete the audit.
[62 FR 2926, Jan. 21, 1997]
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 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.
[[Page 92]]
(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.
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.
54.203 Designation of eligible telecommunications carriers for unserved
areas.
54.205 Relinquishment of universal service.
54.207 Service areas.
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.
54.314 State certification of support for rural carriers.
54.315 Disaggregation and targeting of support by rural incumbent local
exchange 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.
54.411 Link Up program defined.
54.413 Reimbursement for revenue forgone in offering a Link Up program.
54.415 Consumer qualification for Link Up.
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.
54.509 Adjustments to the discount matrix.
54.511 Ordering services.
54.513 Resale.
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.
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 Audit program.
54.621 Access to advanced telecommunications and information services.
54.623 Cap.
[[Page 93]]
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.
54.713 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 Common Carrier 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.
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.
Authority: 47 U.S.C. 1, 4(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. 54.703.
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
[[Page 94]]
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.
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 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.
Rural area. 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.
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
[[Page 95]]
services as defined in section 226 of the Act. A telecommunications
carrier shall be treated as a common carrier under the Act only to the
extent that it is engaged in providing telecommunications services,
except that the Commission shall determine whether the provision of
fixed and mobile satellite service shall be treated as common carriage.
This definition includes cellular mobile radio service (CMRS) providers,
interexchange carriers (IXCs) and, to the extent they are acting as
telecommunications carriers, companies that provide both
telecommunications and information services. Private mobile radio
service (PMRS) providers are telecommunications carriers to the extent
they provide domestic or international telecommunications for a fee
directly to the public.
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]
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.
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
[[Page 96]]
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;
(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) A state commission that is unable to designate as an eligible
telecommunications carrier, by January 1, 1998, a carrier that sought
such designation before January 1, 1998, may, once it has designated
such carrier, file with the Commission a petition for waiver of
paragraph (a)(1) of this section requesting that the carrier receive
universal service support retroactive to January 1, 1998. The state
commission must explain why it did not designate such carrier as
eligible by January 1, 1998, and provide a justification for
[[Page 97]]
why providing support retroactive to January 1, 1998, serves the public
interest.
(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 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]
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
[[Page 98]]
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 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.
[[Page 99]]
(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, Common Carrier Bureau.
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.
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
[[Page 100]]
II
Rural Telephone Bank (RTB) Included in Account 1402
Stock.
Materials and Supplies....... Account 1220.1
Cash Working Capital......... Defined in 47 CFR 65.820(d)
III
Accumulated Depreciation..... Account 3100
Accumulated Amortization..... Accounts 3400, 3500, 3600
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. Accounts 6710, 6720
Operating Taxes.............. Accounts 7230, 7240
Federal Investment Tax Accounts 7210
Credits.
Provision for Deferred Account 7250
Operating Income Taxes--Net.
Allowance for Funds Used Account 7340
During Construction.
Charitable Contributions..... Included in Account 7370
Interest and Related Items... Account 7500
IV
Other Non-Current Assets..... Account 1410
Deferred Maintenance and Account 1438
Retirements.
Deferred Charges............. Account 1439
Other Jurisdictional Assets Accounts 1500, 4370
and Liabilities.
Customer Deposits............ Account 4040
Other Long-Term Liabilities.. Account 4310
(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 Category3 (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 1402); Materials
and Supplies (Account 1220.1); Cash Working Capital (Sec. 65.820(d) of
this chapter); Accumulated Amortization (Accounts 3400, 3500, 3600); Net
Deferred Operating Income Taxes (Accounts 4100, 4340); Network Support
Expenses (Account 6110); Other Property, Plant and Equipment Expenses
(Account 6510); Network Operations Expenses (Account 6530); Marketing
Expense (Account 6610); Services Expense (Account 6620); Operating Taxes
(Accounts 7230, 7240); Federal Investment Tax Credits (Accounts 7210);
Provision for Deferred Operating Income Taxes--Net (Account 7250);
Interest and Related Items (Account 7500); Allowance for Funds Used
During Construction (Account 7340); Charitable Contributions (included
in Account 7370); Other Non-current Assets (Account 1410); Other
Jurisdictional Assets and Liabilities (Accounts 1500, 4370); Customer
Deposits (Account 4040); Other Long-term Liabilities (Account 4310); and
Deferred Maintenance and Retirements (Account 1438) shall be allocated
according to the following factor:
Account 2210 Category 3Account 2001.
(3) Accumulated Depreciation for Central Office--switching (Account
3100
[[Page 101]]
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 3Account 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 (Accounts 6710, 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 - Account 7340 -
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 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
[[Page 102]]
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, Common Carrier Bureau.
[63 FR 2126, Jan. 13, 1998; 63 FR 33585, June 19, 1998]
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.
(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 Department of
Commerce's Gross Domestic Product-Consumer Price Index (GDP-CPI).
[63 FR 2128, Jan. 13, 1998; 63 FR 33586, June 19, 1998]
Sec. 54.305 Sale or transfer of exchanges.
(a) A carrier that acquires telephone exchanges from an unaffiliated
carrier shall receive universal service support for the acquired
exchanges at the same per-line support levels for which those exchanges
were eligible prior to the transfer of the exchanges. A carrier that has
entered into a binding commitment to buy exchanges prior to May 7, 1997
will receive support for the newly acquired lines based upon the average
cost of all of its lines, both those newly acquired and those it had
prior to execution of the sales agreement.
(b) Transferred exchanges in study areas operated by rural telephone
companies that are subject to the limitations on the transfer of high-
cost universal service support in paragraph (a) of this section may be
eligible for a safety valve loop cost expense adjustment based on the
difference between a rural incumbent local exchange carrier's index year
expense adjustment and subsequent year expense adjustments for the
acquired exchanges.
[[Page 103]]
Safety valve loop cost expense adjustments shall only be available to
rural incumbent local exchange carriers that, in the absence of
restrictions on the transfer of high-cost support in Sec. 54.305(a),
would qualify for high-cost loop support for acquired exchanges under
Sec. 36.631 of this chapter.
(c) The index year expense adjustment for acquired exchange(s) shall
be equal to the rural incumbent local exchange carrier's high-cost loop
cost expense adjustment for acquired exchanges calculated at the end of
the company's first year operating the acquired exchange(s). The index
year expense adjustment for the acquired exchange(s) shall be
established through cost data submitted in accordance with Secs. 36.611
and 36.612 of this chapter and shall be calculated in accordance with
Sec. 36.631 of this chapter. For carriers establishing an index year for
acquired exchanges pursuant to Sec. 36.611 of this chapter, the index
year for the acquired exchange(s) shall commence at the beginning of the
next calendar year after the transfer of said exchanges. For carriers
establishing an index year for acquired exchanges pursuant to
Sec. 36.612 of this chapter, the index year for the acquired exchange(s)
shall commence at the beginning of the next calendar quarter after the
transfer of said exchanges. 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. At the end of each
subsequent year, a loop cost expense adjustment for the acquired
exchanges will be calculated pursuant to Sec. 36.631 of this chapter and
will be compared to the index year expense adjustment. A rural incumbent
local exchange carrier's subsequent year expense adjustments shall end
on the same calendar quarter as its index year expense adjustment. If
acquired exchanges are incorporated into an existing rural incumbent
local exchange carrier study area, the rural incumbent local exchange
carrier shall exclude costs associated with the acquired exchanges from
the costs associated with its pre-acquisition study area in its
universal service data submissions filed in accordance with Secs. 36.611
and 36.612 of this chapter. Such excluded costs shall be used to
calculate the rural incumbent local exchange carrier's safety valve loop
cost expense adjustment.
(d) Up to fifty (50) percent of any positive difference between the
subsequent year loop cost expense adjustment and the index year expense
adjustment will be designated as the study area's safety valve loop cost
expense adjustment and will be available in addition to the amounts
available to the study area under Sec. 54.305. In no event shall a study
area's safety valve loop cost expense adjustment exceed the difference
between the carrier's uncapped 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
(a) 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 104]]
loop cost expense adjustment of an individual rural incumbent local
exchange carrier also may be further reduced as described is paragraph
(d) 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 of when their index year has been established for
purposes of calculating the safety valve loop cost expense adjustment.
[62 FR 32948, June 17, 1997, as amended at 66 FR 30087, June 5, 2001]
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.
(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 and LTS, if any. The incumbent
LEC providing nondiscriminatory access to unbundled network elements to
such competitive eligible telecommunications carrier shall receive the
difference between the level of universal service support provided to
the competitive eligible telecommunications carrier and the per-customer
level of support that the incumbent LEC would have received.
(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.
(4) 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 previously provided to the incumbent
local exchange carrier for that customer. The amount of universal
service support provided to such incumbent local exchange carrier shall
be reduced by an amount equal to the amount provided to such competitive
eligible telecommunications carrier.
(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 of this chapter, the carrier must report the
number of
[[Page 105]]
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 of this subpart. For a competitive eligible
telecommunications carrier serving loops in the service area of a non-
rural telephone company, the carrier must report the number of working
loops it serves in the service area and the number of working loops it
serves in each wire center in the 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. For a competitive eligible telecommunications carrier
serving loops in the service area of a non-rural telephone company, the
carrier must submit the data required pursuant to paragraph (b) of this
section according to the schedule.
(1) No later than July 31 of each year, submit data as of December
30th of the previous calendar year;
(2) No later than September 30th of each year, submit data as of
March 30th of the existing calendar year;
(3) No later than December 30th of each year, submit data as of July
31st of the existing calendar year;
(4) No later than March 30th of each year, submit data as of
September 30th of the previous year.
[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]
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 135 percent of the
national average FLEC per line.
(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
[[Page 106]]
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]
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
[[Page 107]]
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 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
[[Page 108]]
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
Secs. 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
Secs. 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 Secs. 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 Secs. 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 (c), with both the Administrator and the Commission. Support
shall be provided in accordance with the following schedule:
(1) First Program Year (January 1, 2000-December 31, 2000). During
the first program year (January 1, 2000-December 31, 2000), a carrier in
a particular State shall receive support pursuant to
[[Page 109]]
Sec. 54.311 of this subpart. If a State files the certification
described in this section during the first program year, carriers
eligible for support pursuant to Sec. 54.309 shall receive such support
pursuant to the following schedule:
(i) Certifications filed on or before April 1, 2000. Carriers
subject to certifications that apply to the first and second quarters of
2000, and are filed on or before April 1, 2000, shall receive support
pursuant to Sec. 54.309 of this subpart for the first and third quarters
of 2000 in the third quarter of 2000, and support for the second and
fourth quarters of 2000 in the fourth quarter of 2000. Such support
shall be net of any support provided pursuant to Sec. 54.311 of this
subpart for the first or second quarters of 2000.
(ii) Certifications filed on or before July 1, 2000. Carriers
subject to certifications filed on or before July 1, 2000, shall receive
support pursuant to Sec. 54.309 of this subpart for the fourth quarter
of 2000 in the fourth quarter of 2000.
(iii) Certifications filed after July 1, 2000. Carriers subject to
certifications filed after July 1, 2000, shall not receive support
pursuant to Sec. 54.309 of this section in 2000.
[64 FR 67432, Dec. 1, 1999, as amended at 64 FR 73428, Dec. 30, 1999; 66
FR 30088, June 5, 2001]
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 Secs. 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 Secs. 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
exchange carrier that desires to receive support pursuant to
Secs. 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 Secs. 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
[[Page 110]]
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 Secs. 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 Secs. 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 Secs. 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 Secs. 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 Secs. 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 Secs. 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 Secs. 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 Secs. 54.301, 54.305, and/or 54.307 and/or part 36, subpart F of this
chapter, in that year.
[66 FR 30088, June 5, 2001]
Sec. 54.315 Disaggregation and targeting of support by rural incumbent local exchange carriers.
(a) Within 270 days of the effective date of this rule, all rural
incumbent local exchange carriers for which high-cost universal service
support pursuant to Secs. 54.301, 54.303, and/or 54.305 and/or part 36,
subpart F of this chapter 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 has been designated as a
competitive eligible telecommunications carrier prior to the effective
date of this rule, the rural incumbent local exchange carrier may only
disaggregate support pursuant to paragraph (b), (c), or (d)(1)(iii) of
this section. A rural incumbent local exchange carrier failing to select
a disaggregation path as described in paragraphs (b), (c), or (d) of
this section within 270 days of the effective date of this rule will not
be permitted to disaggregate and target federal high-cost support unless
ordered to do so by the 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.
[[Page 111]]
(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, 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, the disaggregation and targeting of support in a
different manner.
(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 Secs. 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
[[Page 112]]
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 rural incumbent local exchange
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 rural incumbent local exchange 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 rural incumbent local exchange carrier's lines for each
disaggregation zone multiplied by the per-line support for those zones
when added together equals the sum of the rural incumbent local exchange
carrier's total support.
(6) Until a competitive eligible telecommunications carrier is
certified in a study area, monthly payments to the rural incumbent local
exchange 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 rural incumbent local exchange carrier's then-
current total support levels, lines, and disaggregated support
relationships.
(f) Submission of Information to the Administrator:
(1) A rural incumbent local exchange 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 rural incumbent local exchange 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 rural incumbent local exchange 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
(d)(2)(i) and (d)(2)(iv) of this section or the Federal Communications
Commission.
(4) A rural incumbent local exchange 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]
[[Page 113]]
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, as
defined in 25 CFR 20.1(r) and 20.1(v).
Note to paragraph (e): This paragraph (e) is stayed to the extent
that it applies to qualifying low-income consumers living ``near
reservations'' as that phrase is defined in 25 CFR 20.1(r).
[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]
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 blocking from the carrier, where
available. If toll blocking is 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.
[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]
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
Secs. 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
[[Page 114]]
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 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 a 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.
[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.
[65 FR 47905, Aug. 4, 2000]
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
[[Page 115]]
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 25 CFR 20.1(r)
and 20.1(v), must ensure that its qualification criteria are reasonably
designed to apply to low-income individuals living in such areas.
(b) To qualify to receive Lifeline service in a state that does not
mandate state Lifeline support, a consumer must participate in one of
the following federal assistance programs: Medicaid; food stamps;
Supplemental Security Income; federal public housing assistance; and
Low-Income Home Energy Assistance Program. In a state that does not
mandate state Lifeline support, each eligible telecommunications carrier
providing Lifeline service to a qualifying, low-income consumer must
obtain that consumer's signature on a document certifying under penalty
of perjury that the consumer receives benefits from one of the programs
listed in this paragraph and identifying the program or programs from
which that consumer receives benefits. On the same document, a
qualifying low-income consumer also must agree to notify the carrier if
that consumer ceases to participate in the program or programs.
(c) Notwithstanding paragraphs (a) and (b) of this section, an
individual living on a reservation or near a reservation, as defined in
25 CFR 20.1(r) and 20.1(v), shall qualify to receive Tiers One, Two, and
Four Lifeline service if the individual participates in one of the
following federal assistance programs: Bureau of Indian Affairs general
assistance; Tribally administered Temporary Assistance for Needy
Families; Head Start (only those meeting its income qualifying
standard); or National School Lunch Program's free lunch program. Such
qualifying low-income consumer shall also qualify for Tier-Three
Lifeline support, if the carrier offering the Lifeline service is not
subject to the regulation of the state and provides carrier-matching
funds, as described in 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 section, and lives on or near a reservation, as
defined in 25 CFR 20.1(r)and 20.1(v). In addition to identifying in that
document the program or programs from which that consumer receives
benefits, an eligible resident of Tribal lands also must agree to notify
the carrier if that consumer ceases to participate in the program or
programs.
[65 FR 47905, Aug. 4, 2000]
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 Secs. 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
[[Page 116]]
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
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
[[Page 117]]
Sec. 54.400(e), shall qualify to receive Link Up support.
[65 FR 47906, Aug. 4, 2000]
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) Elementary school. An ``elementary school'' is a non-profit
institutional day or residential school that provides elementary
education, as determined under state law.
(c) 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.
(d) 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.
(e) 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.
(f) 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.
(g) 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.
(h) 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.
(i) 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.
(j) Secondary school. A ``secondary school'' is a non-profit
institutional day or residential school that provides secondary
education, as determined under state law. A secondary school does not
offer education beyond grade 12.
(k) 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
[[Page 118]]
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.
(l) 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]
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. 8801(14), or ``secondary
school,'' as defined in 20 U.S.C. 8801(25), and not excluded under
paragraphs (b)(2) or (b)(3) of this section shall be eligible for
discounts on telecommunications and other supported services under this
subpart.
(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 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]
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
[[Page 119]]
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]
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 Secs. 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 school or library is an eligible entity under
Secs. 254(h)(4) and 254(h)(5) of the Act and the rules adopted under
this subpart;
(ii) The services requested will be used solely for educational
purposes;
(iii) The services will not be sold, resold, or transferred in
consideration for money or any other thing of value;
(iv) If the services are being purchased as part of an aggregated
purchase with other entities, the request identifies all co-purchasers
and the services or portion of the services being purchased by the
school or library;
(v) All of the necessary funding in the current funding year has
been budgeted and approved to pay for the ``non-discount'' portion of
requested connections and services as well as any necessary hardware or
software, and to undertake the necessary staff training required to use
the services effectively;
(vi) The school, library, or consortium including those entities has
complied with all applicable state and local procurement processes; and
(vii) The school, library, or consortium including those entities
has a
[[Page 120]]
technology plan that has been certified by its state, the Administrator,
or an independent entity approved by the Commission.
(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.
(d) 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.
[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]
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 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
[[Page 121]]
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
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
[[Page 122]]
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 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.
[63 FR 2130, Jan. 13, 1998]
Sec. 54.507 Cap.
(a) Amount of the annual cap. The annual cap on federal universal
service support for schools and libraries shall be $2.25 billion per
funding year, and all funding authority for a given funding year that is
unused in that funding year shall be carried forward into subsequent
funding years for use in accordance with demand, with the following
exceptions:
(1) No more than $562.5 million shall be collected or spent per
quarter for the third and fourth quarters of 1999 and the first and
second quarters of 2000 to support the schools and libraries universal
service support mechanism. No more than $2.25 billion shall be collected
or disbursed during the twelve month period from July 1, 1999 through
June 30, 2000.
(2) The carryover of unused funding authority will not apply for the
funding period January 1, 1998 through June 30, 1999. To the extent that
the amounts collected in the funding period January 1, 1998 through June
30, 1999 are less than $2.25 billion, the difference will not be carried
over to subsequent funding years. Carryover of funds will occur only to
the extent that funds are collected but not disbursed in the funding
period January 1, 1998 through June 30, 1999.
(b) A funding year for purposes of the schools and libraries cap
shall be the period July 1 through June 30. For the initiation of the
mechanism only, the eighteen month period from January 1, 1998 to June
30, 1999 shall be considered a funding year. For the 1998-99 funding
year:
(1) Schools and libraries filing applications within the initial 75-
day filing window, and receiving approval for discounts on recurring
services, shall receive funding for requested recurring services through
June 30, 1999; and
(2) Schools and libraries filing applications within the initial 75-
day filing window, and receiving approval for discounts on eligible
nonrecurring services, may receive those nonrecurring services subject
to the approved discount amounts through September 30, 1999.
(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.
[[Page 123]]
(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) 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 and Internet access for all
discount categories, as determined by the schools and libraries discount
matrix in Sec. 54.505(c) of this part. 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 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)(1)(iii): To the extent that there are single
discount percentage levels associated with ``shared services'' under
Sec. 54.505(b)(4), the Administrator shall
[[Page 124]]
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 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, as amended at 62 FR 40748, July 30, 1997;
62 FR 41304, Aug. 1, 1997; 62 FR 56120, Oct. 29, 1997; 63 FR 2130, Jan.
13, 1998; 63 FR 3832, Jan. 27, 1998; 63 FR 45958, Aug. 28, 1998; 63 FR
70572, Dec. 21, 1998; 64 FR 22810, Apr. 28, 1999; 64 FR 30442, June 8,
1999; 64 FR 33788, June 24, 1999; 66 FR 38378, July 24, 2001]
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. If the estimates schools and
libraries make of their future funding needs lead the Administrator to
predict that total funding requests for a funding year will exceed the
available funding, the Administrator shall calculate the percentage
reduction to all schools and libraries, except those in the two most
disadvantaged categories, necessary to permit all requests in the next
funding year to be fully funded.
[[Page 125]]
(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]
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 may consider relevant factors other than the pre-
discount prices submitted by providers.
(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 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]
Sec. 54.513 Resale.
(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
[[Page 126]]
that are not purchased pursuant to the discounts provided in this
subpart.
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 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. Schools and libraries shall be
required to maintain for their purchases of telecommunications and other
supported services at discounted rates the kind of procurement records
that they maintain for other purchases.
(b) Production of records. Schools and libraries shall produce such
records at the request of any auditor appointed by a state education
department, the Administrator, or any state or federal agency with
jurisdiction.
(c) Random audits. Schools and libraries shall be subject to random
compliance audits to evaluate what services they are purchasing and how
such services are being used.
[62 FR 32948, June 17, 1997, as amended at 62 FR 41304, Aug. 1, 1997; 63
FR 70572, Dec. 21, 1998]
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
Internet access and installation and maintenance of internal
connections.
(c) Requirements. Such services provided by non-telecommunications
carriers shall be subject to all the provisions of this subpart, except
Secs. 54.501(a), 54.502, 54.503, 54.515.
[62 FR 32948, June 17, 1997, as amended at 63 FR 2131, Jan. 13, 1998]
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]
[[Page 127]]
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 (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.
[[Page 128]]
(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;
(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
[[Page 129]]
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, 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
[[Page 130]]
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, before the start of the third program year after April 20, 2001
in which the school or library is applying for funds under this title.
(g) Funding year certification deadlines--(1) Funding Year 4. For
Funding Year 4, billed entities shall provide one of the certifications
required under paragraph (c)(1), (c)(2) or (c)(3) of this section to the
Administrator on an FCC Form 486 postmarked no later than October 28,
2001.
(2) Funding Year 5 and subsequent funding years. For Funding Year 5
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 in accordance with the existing program guidelines
established by the Administrator.
[66 FR 19396, Apr. 16, 2001; 66 FR 22133, May 3, 2001]
Subpart G--Universal Service Support for Health Care Providers
Sec. 54.601 Eligibility.
(a) Health care providers. (1) Only an entity meeting the definition
of ``health care provider'' as defined in this section shall be eligible
to receive supported services under this subpart.
(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.
[[Page 131]]
(3) Only public or non-profit health care providers shall be
eligible to receive supported services under this subpart.
(4) Except with regard to those services provided under Sec. 54.621,
only a rural health care provider shall be eligible to receive supported
services under this subpart. A ``rural health care provider'' is a
health care provider located in a rural area, as defined in this part.
(5) Each separate site or location of a health care provider shall
be considered an individual health care provider for purposes of
calculating and limiting support under this subpart.
(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.
(3) Telecommunications carriers, health care providers, and
consortia of health care providers shall carefully maintain complete
records of how they allocate the costs of shared facilities among
consortium participants in order to charge eligible health care
providers the correct amounts. Such records shall be available for
public inspection.
(4) Telecommunications carriers, health care providers, and
consortia of health care providers shall calculate and justify with
supporting documentation the amount of support for which each member of
a consortium is eligible.
(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 nearest large city as defined in
Sec. 54.605(c).
(2) Limited toll-free access to an Internet service provider shall
be eligible for universal service support under Sec. 54.621.
[62 FR 32948, June 17, 1997, as amended at 64 FR 66787, Nov. 30, 1999]
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 Corporation. FCC Form 465 shall be signed by
the person authorized to order telecommunications services for the
health care provider and shall include, at a minimum, that person's
certification under oath that:
(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
[[Page 132]]
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 Corporation 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
Corporation shall send confirmation of the posting to the entity
requesting services. The health care provider shall wait at least 28
days from the date on which its FCC Form 465 is posted on the website
before making commitments with the selected telecommunications
carrier(s).
(4) After selecting a telecommunications carrier, the health care
provider shall certify to the Rural Health Care Corporation that the
provider is selecting the most cost-effective method of providing the
requested service or services, where the most cost-effective method of
providing a service is defined as the method that costs the least after
consideration of the features, quality of transmission, reliability, and
other factors that the health care provider deems relevant to choosing a
method of providing the required health care services. The health care
provider shall submit to the Administrator paper copies of the responses
or bids received in response to the requested services.
(5) The confirmation from the Rural Health Care Corporation shall
include the date after which the requester may sign a contract with its
chosen telecommunications carrier(s).
[62 FR 32948, June 17, 1997, as amended at 62 FR 41304, Aug. 1, 1997; 63
FR 2131, Jan. 13, 1998]
Editorial Note: At 63 FR 70572, Dec. 21, 1998, Sec. 54.603(a)(1)
through (5) was amended by changing the words ``Rural Health Care
Corporation'' to ``Administrator'', however, (a)(1) through (5) did not
exist in the 1998 edition of this volume.
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; or
(2) A contract signed after July 10, 1997 but before the date on
which the universal service competitive bid system described in
Sec. 54.603 is operational is exempt from the competitive bid
requirements only with respect to services that will be provided under
such contract between January 1, 1998 and December 31, 1998.
(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.
(d) The exemption from competitive bid requirements set forth in
paragraph (a) of this section shall not apply to voluntary extensions or
renewals of existing contracts, except to the extent that an eligible
rural health care provider as defined in Sec. 54.601 or consortium that
includes an eligible health
[[Page 133]]
care provider, and that filed an application within the 75-day initial
filing window for 1998 (May 1, 1998--July 14, 1998), may voluntarily
extend or renew, to a date no later than June 30, 1999, an existing
contract that otherwise would terminate between July 14, 1998 and June
30, 1999.
[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]
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 (d) of this section, for the
state in which it is located, the urban rate for that service shall be a
rate no higher than the highest tariffed or publicly-available rate
charged to a commercial customer for a similar service provided over the
same distance in the nearest large city in the state, calculated as if
it were provided between two points within the city.
(b) If a rural health care provider requests an eligible service to
be provided over a distance that is greater than the ``standard urban
distance'' for the state in which it is located, the urban rate shall be
no higher than the highest tariffed or publicly-available rate charged
to a commercial customer for a similar service provided over the
standard urban distance in the nearest large city in the state,
calculated as if the service were provided between two points within the
city.
(c) The ``nearest large city'' is the city located in the eligible
health care provider's state, with a population of at least 50,000, that
is nearest to the health care provider's location, measured point to
point, from the health care provider's location to the point on that
city's jurisdictional boundary closest to the health care provider's
location.
(d) The ``standard urban distance'' for a state is the average of
the longest diameters of all cities with a population of 50,000 or more
within the state.
(e) The Administrator shall calculate the ``standard urban
distance'' and shall post the ``standard urban distance'' and the
maximum supported distance for each state on its website.
[62 FR 32948, June 17, 1997, as amended at 63 FR 2131, Jan. 13, 1998; 63
FR 70572, Dec. 21, 1998]
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 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.
[[Page 134]]
(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 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.
(1) With one exception, the Administrator shall consider the base
rates for telecommunications services elements in rural areas to be
reasonably comparable to the base rates charged for similar
telecommunications service elements in urban areas in that state, and,
therefore, the Administrator shall not include these charges in
calculating the support. The Administrator shall include, in the support
calculation, all other charges specified, and all actual distance-based
charges as follows:
(i) If the requested service distance is less than or equal to the
SUD for the state, the distance-based charge for that service can be no
higher than the distance-based charged for a similar service over the
same distance in the large city nearest to the rural health care
provider;
(ii) If the requested service distance is greater than the SUD for
the state, but less than the maximum allowable distance, the distance-
based charge for that service can be no higher than the distance-based
charged for a similar service in the large city nearest to the rural
health care provider over the SUD.
(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) If a telecommunications carrier, health care provider, and/or
consortium of health care providers reasonably determines that the base
rates for telecommunications services elements in rural areas are not
reasonably comparable to the base rates charged for similar
telecommunications service elements in urban areas in that state, the
telecommunications carrier, health care provider, and/or consortium of
health care providers may request that the Administrator perform a more
comprehensive support calculation. The requester shall provide to the
Administrator the information to establish both the urban and rural
rates consistent with Sec. 54.605 and Sec. 54.607, and submit to the
Administrator all of the documentation necessary to substantiate the
request.
(i) 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 elements for the health care
provider's portion of the shared telecommunications services, as well as
the applicable urban base rates for the telecommunications service
elements.
(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.
[[Page 135]]
(c) The universal service support mechanisms shall provide support
for intrastate telecommunications services, as set forth in Sec. 54.101
paragraph (a), provided to rural health care providers as well as
interstate telecommunications services.
[62 FR 32948, June 17, 1997, as amended at 62 FR 41305, Aug. 1, 1997; 63
FR 2131, Jan. 13, 1998; 63 FR 70572, Dec. 21, 1998; 64 FR 66787, Nov.
30, 1999]
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
this paragraph, at a distance not to exceed the distance between the
eligible health care provider's site and the farthest point from that
site that is on the jurisdictional boundary of the nearest large city,
as defined in Sec. 54.605(c).
(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]
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;
(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 136]]
(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.
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 Audit program.
(a) Recordkeeping requirements. Health care providers shall maintain
for their purchases of services supported under this subpart the same
kind of procurement records that they maintain for other purchases.
(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) Annual report. The Administrator shall use the information
obtained under paragraph (a) of this section to evaluate the effects of
the regulations adopted in this subpart and shall report its findings to
the Commission on the first business day in May of each year.
[62 FR 32948, June 17, 1997, as amended at 63 FR 2132, Jan. 13, 1998; 63
FR 70572, Dec. 21, 1998]
Sec. 54.621 Access to advanced telecommunications and information services.
Each eligible health care provider that cannot obtain toll-free
access to an Internet service provider shall be entitled to receive the
lesser of the toll charges incurred for 30 hours of access per month to
an Internet service provider or $180 per month in toll charge credits
for toll charges imposed for connecting to an Internet service provider.
[64 FR 62123, Nov. 16, 1999]
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. No more than $3 million
shall be collected or spent per quarter for the third and fourth
quarters of 1999 and the first and second quarters of 2000 for the rural
health care universal service support mechanism. No more than $12
million shall be committed or disbursed during the twelve month period
from July 1, 1999 through June 30, 2000.
(b) Funding year. A funding year for purposes of the health care
providers cap shall be the period July 1 through June 30. For the
initiation of the mechanism only, the eighteen month period from January
1, 1998 to June 30, 1999 shall be considered a funding year. Eligible
health care providers filing applications within the initial 75-day
filing window shall receive funding for requested services through June
30, 1999.
(c) Requests. Funds shall be available as follows:
(1) Generally, funds shall be available to eligible health care
providers on a
[[Page 137]]
first-come-first-served basis, with requests accepted beginning on the
first of January prior to each funding year.
(2) For the initial funding year, the Administrator shall implement
an initial filing period that treats all health care providers filing
within that period as if they were simultaneously received. The initial
filing period shall begin on the date that the Administrator begins to
receive applications for support, and shall conclude on a date to be
determined by the Administrator.
(3) For the second funding year, which will begin on July 1, 1999,
the Administrator shall implement a filing period that treats all health
care providers filing within that period as if they were simultaneously
received. The initial filing period shall begin on the date that the
Administrator begins to receive applications for support, and shall
conclude on a date to be determined by the Administrator.
(4) The Administrator may implement such additional filing periods
as it deems necessary.
(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]
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 boundary of the nearest large
city, 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]
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 Schools and Libraries Corporation and the Rural Health Care
[[Page 138]]
Corporation shall merge into the Universal Service Administrative
Company by January 1, 1999; provided, however, that the merger shall not
take place until the Common Carrier Bureau, acting pursuant to delegated
authority, has approved the merger documents, the amended by-laws, and
the amended articles of incorporation, as set forth in paragraphs (c)
and (d) of this section.
(c) By December 1, 1998, the Schools and Libraries Corporation, the
Rural Health Care Corporation and the Universal Service Administrative
Company shall file with the Federal Communications Commission draft
copies of all documents necessary to effectuate the merger.
(d) By December 1, 1998, the Universal Service Administrative
Company shall file with the Federal Communications Commission draft
copies of amended by-laws and amended articles of incorporation.
(e) Upon consummation of the merger of the Schools and Libraries
Corporation and the Rural Health Care Corporation into the Universal
Service Administrative Company, the Schools and Libraries Corporation
and the Rural Health Care Corporation shall take all steps necessary to
dissolve such corporations.
(f) 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.
(g)(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, and the interstate access universal service support
mechanism described in subpart J of this part, under the direction of
the High Cost and Low Income Committee of the Board, as set forth in
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.
(h) 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]
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, and the interstate
access universal service support mechanism described in subpart J 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,
[[Page 139]]
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 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) Pursuant to its responsibility for billing and collecting
contributions, the Administrator shall compare periodically information
collected by the administrator of the TRS Fund from TRS Fund Worksheets
with information submitted by contributors on Universal Service
Worksheets to verify the accuracy of information submitted on Universal
Service Worksheets. When performing a comparison of contributor
information as provided by this paragraph, the Administrator must
undertake company-by-company comparisons for all entities filing
Universal Service and TRS Fund Worksheets.
(g) 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.
(h) The Administrator shall file with the Commission and Congress an
annual report by March 31 of each year. The report shall detail the
Administrator's operations, activities, and accomplishments for the
prior year, including information about participation in each of the
universal service support mechanisms and administrative action intended
to prevent waste, fraud, and abuse. The report also shall include an
assessment of subcontractors' performance, and an itemization of monthly
administrative costs that shall include all expenses, receipts, and
payments associated with the administration of the universal service
support programs. The Administrator shall consult each year with
Commission staff to determine the scope and content of the annual
report.
(i) The Administrator shall report quarterly to the Commission on
the disbursement of universal service support program funds. The
Administrator shall keep separate accounts for the amounts of money
collected and disbursed for eligible schools and libraries, rural health
care providers, low-income consumers, interstate access universal
service support, and high-cost and insular areas.
(j) Information based on the Administrator's reports will be made
public by the Commission at least once a year as part of a Monitoring
Report.
(k) The Administrator shall provide the Commission full access to
the data collected pursuant to the administration of the universal
service support programs.
(l) 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.
(m) The Administrator shall make available to whomever the
Commission directs, free of charge, any and all intellectual property,
including, but not limited to, all records and information generated by
or resulting from its role in administering the support mechanisms, if
its participation in administering the universal service support
mechanisms ends.
(n) If its participation in administering the universal service
support mechanisms ends, the Administrator shall be subject to close-out
audits at the end of its term.
[63 FR 70573, Dec. 21, 1998, as amended at 65 FR 38690, June 21, 2000;
65 FR 57739, Sept. 26, 2000]
Sec. 54.703 The Administrator's Board of Directors.
(a) The Administrator shall have a Board of Directors separate from
the
[[Page 140]]
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 Common Carrier Bureau's Accounting 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 on the Administrator's Board
shall be appointed for three-year terms, except that the Chief Executive
Officer shall be a permanent member of the Board. Board member terms
shall run from January 1 of the first year of the term to December 31 of
the third year of the term, except that, for purposes of the term
beginning on January 1, 1999, the
[[Page 141]]
terms of six directors shall expire on December 31, 2000, the terms of
another six directors on December 31, 2001, and the terms of the
remaining six directors on December 31, 2002. Directors may be
reappointed for subsequent terms pursuant to the initial nomination and
appointment process described in paragraph (c) of this section. If a
Board member vacates his or her seat prior to the completion of his or
her term, the Administrator will notify the Common Carrier Bureau of
such vacancy, and a successor will be chosen pursuant to the nomination
and appointment process described in paragraph (c) of this section.
(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]
Effective Date Note: At 63 FR 70573, Dec. 21, 1998, Sec. 54.703 was
revised. Paragraph (c) contains modified information collection
requirements and will not become effective until approved by the Office
of Management and Budget.