[Title 47 CFR ]
[Code of Federal Regulations (annual edition) - October 1, 2002 Edition]
[From the U.S. Government Printing Office]



[[Page i]]



                    47


          Parts 40 to 69

                         Revised as of October 1, 2002

Telecommunication





          Containing a codification of documents of general 
          applicability and future effect
          As of October 1, 2002
          With Ancillaries
          Published by
          Office of the Federal Register
          National Archives and Records
          Administration

A Special Edition of the Federal Register



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                     U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 2002



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                            Table of Contents



                                                                    Page
  Explanation.................................................       v

  Title 47:
          Chapter I--Federal Communications Commission 
          (Continued)                                                3
  Finding Aids:
      Material Approved for Incorporation by Reference........     419
      Table of CFR Titles and Chapters........................     421
      Alphabetical List of Agencies Appearing in the CFR......     439
      Table of OMB Control Numbers............................     449
      List of CFR Sections Affected...........................     459



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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.

                     ----------------------------

[[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

    The contents of the Federal Register are required to be judicially 
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

    The Code of Federal Regulations is kept up to date by the individual 
issues of the Federal Register. These two publications must be used 
together to determine the latest version of any given rule.
    To determine whether a Code volume has been amended since its 
revision date (in this case, October 1, 2002), consult the ``List of CFR 
Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
List of Parts Affected,'' which appears in the Reader Aids section of 
the daily Federal Register. These two lists will identify the Federal 
Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

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

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.

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Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
placed as close as possible to the applicable recordkeeping or reporting 
requirements.

OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
the cover of each volume are not carried. Code users may find the text 
of provisions in effect on a given date in the past by using the 
appropriate numerical list of sections affected. For the period before 
January 1, 2001, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, 1973-1985, or 1986-2000, published in 11 separate 
volumes. For the period beginning January 1, 2001, a ``List of CFR 
Sections Affected'' is published at the end of each CFR volume.

INCORPORATION BY REFERENCE

    What is incorporation by reference? Incorporation by reference was 
established by statute and allows Federal agencies to meet the 
requirement to publish regulations in the Federal Register by referring 
to materials already published elsewhere. For an incorporation to be 
valid, the Director of the Federal Register must approve it. The legal 
effect of incorporation by reference is that the material is treated as 
if it were published in full in the Federal Register (5 U.S.C. 552(a)). 
This material, like any other properly issued regulation, has the force 
of law.
    What is a proper incorporation by reference? The Director of the 
Federal Register will approve an incorporation by reference only when 
the requirements of 1 CFR part 51 are met. Some of the elements on which 
approval is based are:
    (a) The incorporation will substantially reduce the volume of 
material published in the Federal Register.
    (b) The matter incorporated is in fact available to the extent 
necessary to afford fairness and uniformity in the administrative 
process.
    (c) The incorporating document is drafted and submitted for 
publication in accordance with 1 CFR part 51.
    Properly approved incorporations by reference in this volume are 
listed in the Finding Aids at the end of this volume.
    What if the material incorporated by reference cannot be found? If 
you have any problem locating or obtaining a copy of material listed in 
the Finding Aids of this volume as an approved incorporation by 
reference, please contact the agency that issued the regulation 
containing that incorporation. If, after contacting the agency, you find 
the material is not available, please notify the Director of the Federal 
Register, National Archives and Records Administration, Washington DC 
20408, or call (202) 523-4534.

CFR INDEXES AND TABULAR GUIDES

    A subject index to the Code of Federal Regulations is contained in a 
separate volume, revised annually as of January 1, entitled CFR Index 
and Finding Aids. This volume contains the Parallel Table of Statutory 
Authorities and Agency Rules (Table I). A list of CFR titles, chapters, 
and parts and an alphabetical list of agencies publishing in the CFR are 
also included in this volume.
    An index to the text of ``Title 3--The President'' is carried within 
that volume.
    The Federal Register Index is issued monthly in cumulative form. 
This index is based on a consolidation of the ``Contents'' entries in 
the daily Federal Register.
    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

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REPUBLICATION OF MATERIAL

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

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
volume, contact the issuing agency. The issuing agency's name appears at 
the top of odd-numbered pages.
    For inquiries concerning CFR reference assistance, call 202-741-6000 
or write to the Director, Office of the Federal Register, National 
Archives and Records Administration, Washington, DC 20408 or e-mail 
[email protected].

SALES

    The Government Printing Office (GPO) processes all sales and 
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ELECTRONIC SERVICES

    The full text of the Code of Federal Regulations, The United States 
Government Manual, the Federal Register, Public Laws, Public Papers, 
Weekly Compilation of Presidential Documents and the Privacy Act 
Compilation are available in electronic format at www.access.gpo.gov/
nara (``GPO Access''). For more information, contact Electronic 
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Phone 202-512-1530, or 888-293-6498 (toll-free). E-mail, 
[email protected].
    The Office of the Federal Register also offers a free service on the 
National Archives and Records Administration's (NARA) World Wide Web 
site for public law numbers, Federal Register finding aids, and related 
information. Connect to NARA's web site at www.nara.gov/fedreg. The NARA 
site also contains links to GPO Access.

                              Raymond A. Mosley,
                                    Director,
                          Office of the Federal Register.

October 1, 2002.



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                               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, 2002.

    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.

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

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                       TITLE 47--TELECOMMUNICATION




                   (This book contains parts 40 to 69)

  --------------------------------------------------------------------
                                                                    Part

chapter i--Federal Communications Commission (Continued)....          42

[[Page 3]]



        CHAPTER I--FEDERAL COMMUNICATIONS COMMISSION (CONTINUED)




  --------------------------------------------------------------------

            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.............................          15
52              Numbering...................................          62
53              Special provisions concerning Bell operating 
                    companies...............................          88
54              Universal service...........................          93
59              Infrastructure sharing......................         163
61              Tariffs.....................................         164
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.........         206
64              Miscellaneous rules relating to common 
                    carriers................................         242
65              Interstate rate of return prescription 
                    procedures and methodologies............         324
68              Connection of terminal equipment to the 
                    telephone network.......................         333
69              Access charges..............................         369

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  Transactions with affiliates.
43.41  [Reserved]
43.43  Reports of proposed changes in depreciation rates.
43.51  Contracts and concessions.
43.53  Reports regarding division of international toll communication 
          charges.
43.61  Reports of international telecommunications traffic.
43.72  [Reserved]
43.82  International circuit status reports.

    Authority: 47 U.S.C. 154; Telecommunications Act of 1996, Pub. L. 
104-104, secs. 402 (b)(2)(B), (c), 110 Stat. 56 (1996) as amended unless 
otherwise noted. 47 U.S.C. 211, 219, 220 as amended.

    Source: 28 FR 13214, Dec. 5, 1963, unless otherwise noted.



Sec. 43.01  Applicability.

    (a) The sections in this part include requirements which have been 
promulgated under authority of sections 211 and 219 of the 
Communications Act of 1934, as amended, with respect to the filing by 
communication common carriers and certain of their affiliates of 
periodic reports and certain other data, but do not include certain 
requirements relating to the filing of information with respect to 
specific services, accounting systems and other matters incorporated in 
other parts of this chapter.
    (b) Except as provided in paragraphs (c) and (d) of this section, 
carriers becoming subject to the provisions of the several sections of 
this part for the first time, shall, within thirty (30) days of becoming 
subject, file the required data as set forth in the various sections of 
this part.
    (c) Carriers becoming subject to the provisions of 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 local exchange services as of 
June 31 of the current year). Common carriers becoming subject to the 
provisions of

[[Page 8]]

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  Transactions with affiliates.

    (a) Communication common carriers having annual operating revenues 
in excess of the indexed revenue threshold, as defined in Sec. 32.9000, 
and certain companies (as indicated in paragraph (b) of this section) 
directly or indirectly controlling such carriers shall file with the 
Commission annual reports or an annual letter as provided in this 
section. Except as provided in paragraph (b) of this section, each 
annual report required by this section shall be filed no later than 
April 1 of each year, covering the preceding calendar year. It shall be 
filed on the appropriate report form prescribed by the Commission (see 
Sec. 1.785 of this chapter) and shall contain full and specific answers 
to all questions propounded and information requested in the currently 
effective report forms. The number of copies to be filed shall be 
specified in the applicable report form. At least one copy of this 
report shall be signed on the signature page by the responsible 
accounting officer. A copy of each annual report shall be as retained in 
the principal office of the respondent and shall be filed in such manner 
to be readily available for reference and inspection.
    (b) Each company, not itself a communication common carrier, that 
directly or indirectly controls any communication common carrier that 
has annual operating revenues equal to or above the indexed revenue 
threshold, as defined in Sec. 32.9000, shall file annually with the 
Commission, not later

[[Page 9]]

than the date prescribed by the Securities and Exchange Commission for 
its purposes, two complete copies of any annual report Forms 10-K (or 
any superseding form) filed with that Commission.
    (c) Each miscellaneous common carrier (as defined by Sec. 21.2 of 
this chapter) with operating revenues for a calendar year in excess of 
the indexed revenue threshold, as defined in Sec. 32.9000, shall file 
with the Common Carrier Bureau Chief a letter showing its operating 
revenues for that year and the value of its total communications plant 
at the end of that year. This letter must be filed no later than April 1 
of the following year. Those miscellaneous common carriers with annual 
operating revenues that equal or surpass the indexed revenue threshold 
for the first time may file the letter up to one month after publication 
of the adjusted revenue threshold in the Federal Register, but in no 
event shall such carriers be required to file the letter prior to April 
1.
    (d) Each communications common carrier required by order to file a 
manual allocating its costs between regulated and nonregulated 
operations shall file, on or before April 1:
    (1) A three-year forecast of regulated and nonregulated use of 
network plant for the current calendar year and the two calendar years 
following, and investment pool projections and allocations for the 
current calendar year; and
    (2) A report of the actual use of network plant investment for the 
prior calendar year.
    (e) Each incumbent local exchange carrier, except mid-sized 
incumbent local exchange carriers, as defined by Sec. 32.9000 with 
annual operating revenues equal to or above the indexed revenue 
threshold shall file, no later than April 1 of each year:
    (1) Its revenues, expenses and investment for all accounts 
established in part 32 of this chapter, on an operating company basis,
    (2) The same part 32 of this chapter, on a study area basis, with 
data for regulated and nonregulated operations for those accounts which 
are related to the carrier's revenue requirement, and
    (3) The separations categories on a study area basis, with each 
category further divided into access elements and a nonaccess interstate 
category.
    (f) Each incumbent local exchange carrier with operating revenues 
for the preceding year that equal or exceed the indexed revenue 
threshold shall file, no later than April 1 of each year, a report 
showing for the previous calendar year its revenues, expenses, taxes, 
plant in service, other investment and depreciation reserves, and other 
such data as are required by the Commission, on computer media 
prescribed by the Commission. The total operating results shall be 
allocated between regulated and nonregulated operations, and the 
regulated data shall be further divided into the following categories: 
State and interstate, and the interstate will be further divided into 
common line, traffic sensitive access, special access, and nonaccess.
    (g) Each incumbent local exchange carrier for whom price cap 
regulation is mandatory and every incumbent local exchange carrier that 
elects to be covered by the price cap rules shall file, by April 1 of 
each year, a report designed to capture trends in service quality under 
price cap regulation. The report shall contain data relative to network 
measures of service quality, as defined by the Wireline Competition 
Bureau, from the previous calendar year on a study area basis.
    (h) Each incumbent local exchange carrier for whom price cap 
regulation is mandatory shall file, by April 1 of each year, a report 
designed to capture trends in service quality under price cap 
regulation. The report shall contain data relative to customer measures 
of service quality, as defined by the Wireline Competition Bureau, from 
the previous calendar year a study area basis.
    (i) Each incumbent local exchange carrier for whom price regulation 
is mandatory shall file, by April 1 of each year, a report containing 
data from the previous calendar year on a study area basis that are 
designed to capture trends in telephone industry infrastructure 
development under price cap regulation.
    (j) Each incumbent local exchange carrier with annual operating 
revenues that equal or exceed the indexed revenue threshold shall file, 
no later than

[[Page 10]]

April 1 of each year, a report containing data from the previous 
calendar year on an operating company basis. Such report shall combine 
statistical data designed to monitor network growth, usage, and 
reliability.
    (k) Each designated interstate carrier with operating revenues for 
the preceding year that equal or exceed the indexed revenue threshold 
shall file, no later than April 1 of each year, a report showing for the 
previous calendar year its revenues, expenses, taxes, plant in service, 
other investments and depreciation reserves, and such other data as are 
required by the Commission, on computer media prescribed by the 
Commission. The total operating results shall be allocated between 
regulated and nonregulated operations, and the regulated data shall be 
further divided into the following categories: State and interstate, and 
the interstate will be further divided into common line, traffic 
sensitive access, special access, and nonaccess.

[28 FR 13214, Dec. 5, 1963, as amended at 49 FR 10122, Mar. 19, 1984; 50 
FR 41153, Oct. 9, 1985; 51 FR 37024, Oct. 17, 1986; 52 FR 35918, Sept. 
24, 1987; 58 FR 36143, July 6, 1993; 61 FR 50245, Sept. 25, 1996; 62 FR 
39778, July 24, 1997; 67 FR 5700, Feb. 6, 2002; 67 FR 13225, Mar. 21, 
2002]



Sec. 43.41  [Reserved]



Sec. 43.43  Reports of proposed changes in depreciation rates.

    (a) Each communication common carrier with annual operating expenses 
that equal or exceed the indexed revenue threshold, as defined in 
Sec. 32.9000, and that has been found by this Commission to be a 
dominant carrier with respect to any communications service shall, 
before making any changes in the depreciation rates applicable to its 
operated plant, file with the Commission a report furnishing the data 
described in the subsequent paragraphs of this section, and also comply 
with the other requirements thereof.
    (b) Each such report shall contain the following:
    (1) A schedule showing for each class and subclass of plant (whether 
or not the depreciation rate is proposed to be changed) an appropriate 
designation therefor, the depreciation rate currently in effect, the 
proposed rate, and the service-life and net-salvage estimates underlying 
both the current and proposed depreciation rates;
    (2) An additional schedule showing for each class and subclass, as 
well as the totals for all depreciable plant, (i) the book cost of plant 
at the most recent date available, (ii) the estimated amount of 
depreciation accruals determined by applying the currently effective 
rate to the amount of such book cost, (iii) the estimated amount of 
depreciation accruals determined by applying the rate proposed to be 
used to the amount of such book cost, and (iv) the difference between 
the amounts determined in paragraphs (b)(2) (ii) and (iii) of this 
section;
    (3) A statement giving the reasons for the proposed change in each 
rate;
    (4) A statement describing the method or methods employed in the 
development of the service-life and salvage estimates underlying each 
proposed change in a depreciation rate; and
    (5) The date as of which the revised rates are proposed to be made 
effective in the accounts.
    (c) Except as specified in paragraphs (c)(1) and (c)(3) of this 
section, when the change in the depreciation rate proposed for any class 
or subclass of plant (other than one occasioned solely by a shift in the 
relative investment in the several subclasses of the class of plant) 
amounts to twenty percent (20%) or more of the rate currently applied 
thereto, or when the proposed change will produce an increase or 
decrease of one percent (1%) or more of the aggregate depreciation 
charges for all depreciable plant (based on the amounts determined in 
compliance with paragraph (b)(2) of this section) the carrier shall 
supplement the data required by paragraph (b) of this section) with 
copies of the underlying studies, including calculations and 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]



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 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

[[Page 12]]

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 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,

[[Page 13]]

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 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]

[[Page 14]]



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.
    (2) Each common carrier shall submit a revised report by October 31 
identifying and correcting any inaccuracies included in the annual 
report exceeding five percent of the reported figure.
    (3) The information required under this section shall be furnished 
in conformance with the instructions and reporting requirements prepared 
under the direction of the Chief, Wireline Competition Bureau, prepared 
and published as a manual, in consultation and coordination with the 
Chief, International Bureau.
    (b) Quarterly Traffic Reports. (1) Each common carrier engaged in 
providing international telecommunicaitons service between the area 
comprising the continental United States, Alaska, Hawaii, and off-shore 
U.S. points and any country or point outside that area shall file with 
the Commission, in addition to the report required by paragraph (a) of 
this section, actual traffic and revenue data for each calendar quarter 
in which the carrier's quarterly minutes exceed the corresponding 
minutes for all carriers by one or more of the following tests:
    (i) The carrier's aggregate minutes of facilities-based or 
facilities resale switched telephone traffic for service billed in the 
United States are greater than 1.0 percent of the total of such minutes 
of international traffic for all U.S. carriers published in the 
Commission's most recent Sec. 43.61 annual report of international 
telecommunications traffic;
    (ii) The carrier's aggragate minutes of facilities-based or 
facilities resale switched telephone traffic for service billed outside 
the United States are greater than 1.0 percent of the total of such 
minutes of international traffic for all U.S. carriers published in the 
Commission's most recent Sec. 43.61 annual report of international 
telecommunications traffic;
    (iii) The carrier's aggregate minutes of facilities-based or 
facilities switched telephone traffic for service billed in the United 
States for any foreign country are greater than 2.5 percent of the total 
of such minutes of international traffic for that country for all U.S. 
carriers published in the Commission's

[[Page 15]]

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. Commercial Mobile Radio Service (CMRS) carriers, 
as defined in Sec. 20.9 of this chapter, are not required to file 
reports pursuant to this paragraph. For purposes of this paragraph, 
affiliated and foreign carrier are defined in Sec. 63.09 of this 
chapter.

[57 FR 8580, Mar. 11, 1992, as amended at 60 FR 5333, Jan. 27, 1995; 62 
FR 5541, Feb. 6, 1997; 62 FR 45761, Aug. 29, 1997; 64 FR 19061, Apr. 19, 
1999; 66 FR 67112, Dec. 28, 2001; 67 FR 13225, Mar. 21, 2002; 67 FR 
45390, July 9, 2002]



Sec. 43.72  [Reserved]



Sec. 43.82  International circuit status reports.

    (a) Each facilities-based common carrier engaged in providing 
international telecommunications service between the area comprising the 
continental United States, Alaska, Hawaii, and off-shore U.S. points and 
any country or point outside that area shall file a circuit status 
report with the Chief, International Bureau, not later than March 31 
each year showing the status of its circuits used to provide 
international services as of December 31 of the preceding calendar year.
    (b) The information contained in the reports shall include the total 
number of activated and the total number of idle circuits by the 
categories of submarine cable, satellite and terrestrial facilities to 
geographic points outside the United States for the services designated 
by the Chief, International Bureau.
    (c) The information required under this section shall be furnished 
in conformance with instructions and reporting requirements prepared 
under the direction of the Chief, International Bureau, prepared and 
published as a manual.
    (d) Authority is hereby delegated to the Chief, International Bureau 
to prepare instructions and reporting requirements for the filing of the 
annual international circuit status reports.

[60 FR 51368, Oct. 2, 1995]



PART 51--INTERCONNECTION--Table of Contents




                     Subpart A--General Information

Sec.
51.1  Basis and purpose.
51.3  Applicability to negotiated agreements.
51.5  Terms and definitions.

[[Page 16]]

                 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.
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.

[[Page 17]]

   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.
    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).

[[Page 18]]

    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, 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.

[[Page 19]]

    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, 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:

[[Page 20]]

    (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 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

[[Page 21]]

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:
    (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.

[[Page 22]]



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 
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.

[[Page 23]]

    (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 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

[[Page 24]]

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:
    (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

[[Page 25]]

any customer of a competing provider can obtain directory listings, 
except as provided in paragraph (c)(3)(iv) of this section, on a 
nondiscriminatory basis, notwithstanding the identity of the customer's 
local service provider, or the identity of the provider for the customer 
whose listing is requested. A LEC must supply access to directory 
assistance in the manner specified by the competing provider, including 
transfer of the LECs' directory assistance databases in readily 
accessible magnetic tape, electronic or other convenient format, as 
provided in paragraph (c)(3)(iii) of this section. Updates to the 
directory assistance database shall be made in the same format as the 
initial transfer (unless the requesting LEC requests otherwise), and 
shall be performed in a timely manner, taking no longer than those made 
to the providing LEC's own database. A LEC shall accept the listings of 
those customers served by competing providers for inclusion in its 
directory assistance/operator services databases.
    (ii) Access to directory listings. A LEC that compiles directory 
listings shall share directory listings with competing providers in the 
manner specified by the competing provider, including readily accessible 
tape or electronic formats, as provided in paragraph (c)(3)(iii) of this 
section. Such data shall be provided in a timely fashion.
    (iii) Format. A LEC shall provide access to its directory assistance 
services, including directory assistance databases, and to its directory 
listings in any format the competing provider specifies, if the LEC's 
internal systems can accommodate that format.
    (A) If a LEC's internal systems do not permit it provide directory 
assistance or directory listings in the format the specified by the 
competing provider, the LEC shall:
    (1) Within thirty days of receiving the request, inform the 
competing provider that the requested format cannot be accommodated and 
tell the requesting provider which formats can be accommodated; and
    (2) Provide the requested directory assistance or directory listings 
in the format the competing provider chooses from among the available 
formats.
    (B) [Reserved]
    (iv) Unlisted numbers. A LEC shall not provide access to unlisted 
telephone numbers, or other information that its customer has asked the 
LEC not to make available, with the exception of customer name and 
address. The LEC shall ensure that access is permitted to the same 
directory information, including customer name and address, 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

[[Page 26]]

processing the calls of the competing provider's customers on terms 
equal to that of similar calls from the providing LEC's own customers.

[61 FR 47350, Sept. 6, 1996, as amended at 64 FR 51911, Sept. 27, 1999]

    Effective Date Note: At 64 FR 51911, Sept. 27, 1999, Sec. 51.217 was 
amended by revising paragraph (c)(3). This paragraph contains 
information collection and recordkeeping requirements and will not 
become effective until approval has been given by the Office of 
Management and Budget.



Sec. 51.219  Access to rights of way.

    The rules governing access to rights of way are set forth in part 1, 
subpart J of this chapter.



Sec. 51.221  Reciprocal compensation.

    The rules governing reciprocal compensation are set forth in subpart 
H of this part.



Sec. 51.223  Application of additional requirements.

    (a) A state may not impose the obligations set forth in section 
251(c) of the Act on a LEC that is not classified as an incumbent LEC as 
defined in section 251(h)(1) of the Act, unless the Commission issues an 
order declaring that such LECs or classes or categories of LECs should 
be treated as incumbent LECs.
    (b) A state commission, or any other interested party, may request 
that the Commission issue an order declaring that a particular LEC be 
treated as an incumbent LEC, or that a class or category of LECs be 
treated as incumbent LECs, pursuant to section 251(h)(2) of the Act.



Sec. 51.230  Presumption of acceptability for deployment of an advanced services loop technology.

    (a) An advanced services loop technology is presumed acceptable for 
deployment under any one of the following circumstances, where the 
technology:
    (1) Complies with existing industry standards; or
    (2) Is approved by an industry standards body, the Commission, or 
any state commission; or
    (3) Has been successfully deployed by any carrier without 
significantly degrading the performance of other services.
    (b) An incumbent LEC may not deny a carrier's request to deploy a 
technology that is presumed acceptable for deployment unless the 
incumbent LEC demonstrates to the relevant state commission that 
deployment of the particular technology will significantly degrade the 
performance of 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.

[[Page 27]]

    (1) Where the requesting carrier asserts that the technology it 
seeks to deploy fits within a generic power spectral density (PSD) mask, 
it also must provide Spectrum Class information for the technology.
    (2) Where a requesting carrier relies on a calculation-based 
approach to support deployment of a particular technology, it must 
provide the incumbent LEC with information on the speed and power at 
which the signal will be transmitted.
    (c) The requesting carrier also must provide the information 
required under paragraph (b) of this section when notifying the 
incumbent LEC of any proposed change in advanced services technology 
that the carrier uses on the loop.

[65 FR 1345, Jan. 10, 2000]



Sec. 51.232  Binder group management.

    (a) With the exception of loops on which a known disturber is 
deployed, the incumbent LEC shall be prohibited from designating, 
segregating or reserving particular loops or binder groups for use 
solely by any particular advanced services loop technology.
    (b) Any party seeking designation of a technology as a known 
disturber should file a petition for declaratory ruling with the 
Commission seeking such designation, pursuant to Sec. 1.2 of this 
chapter.

[65 FR 1346, Jan. 10, 2000]



Sec. 51.233  Significant degradation of services caused by deployment of advanced services.

    (a) Where a carrier claims that a deployed advanced service is 
significantly degrading the performance of other advanced services or 
traditional voiceband services, that carrier must notify the deploying 
carrier and allow the deploying carrier a reasonable opportunity to 
correct the problem. Where the carrier whose services are being degraded 
does not know the precise cause of the degradation, it must notify each 
carrier that may have caused or contributed to the degradation.
    (b) Where the degradation asserted under paragraph (a) of this 
section remains unresolved by the deploying carrier(s) after a 
reasonable opportunity to correct the problem, the carrier whose 
services are being degraded must establish before the relevant state 
commission that a particular technology deployment is causing the 
significant degradation.
    (c) Any claims of network harm presented to the deploying carrier(s) 
or, if subsequently necessary, the relevant 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

[[Page 28]]

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 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

[[Page 29]]

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.
    (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.

[[Page 30]]

    (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.
    (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.

[[Page 31]]



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.
    (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

[[Page 32]]

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 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

[[Page 33]]

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 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

[[Page 34]]

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 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

[[Page 35]]

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 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

[[Page 36]]

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, 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

[[Page 37]]

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 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,

[[Page 38]]

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 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

[[Page 39]]

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 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]

[[Page 40]]



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 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;

[[Page 41]]

    (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 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.

[[Page 42]]

    (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 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

[[Page 43]]

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 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

[[Page 44]]

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 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

[[Page 45]]

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
    (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, Wireline Competition 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 Bureau. 
The diskette must be submitted in ``read

[[Page 46]]

only'' mode, and must be clearly labeled with the carrier's name, the 
filing date, and an identification or the diskette's contents.

[61 FR 47351, Sept. 6, 1996, as amended at 67 FR 13225, Mar. 21, 2002]



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]



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

[[Page 47]]

date the incumbent LEC gave its original public notice under this 
section) by which the objector anticipates that it can accommodate the 
incumbent LEC's changes, assuming it receives the technical information 
or other assistance requested under paragraph (c)(1) of this section;
    (4) Provide any other information relevant to the objection; and
    (5) Provide the following affidavit, executed by the objector's 
president, chief executive officer, or other corporate officer or 
official, who has appropriate authority to bind the corporation, and 
knowledge of the details of the objector's inability to adjust its 
network on a timely basis:

    ``I, (name and title), under oath and subject to penalty for 
perjury, certify that I have read this objection, that the statements 
contained in it are true, that there is good ground to support the 
objection, and that it is not interposed for purposes of delay. I have 
appropriate authority to make this certification on behalf of (objector) 
and I agree to provide any information the Commission may request to 
allow the Commission to evaluate the truthfulness and validity of the 
statements contained in this objection.''

    (d) Response to objections. If an objection is filed, an incumbent 
LEC shall have until no later than the fourteenth business day following 
the release of the Commission's public notice to file with the 
Commission a response to the objection and to serve the response on all 
parties that filed objections. An incumbent LEC's response must:
    (1) Provide information responsive to the allegations and concerns 
identified by the objectors;
    (2) State whether the implementation date(s) proposed by the 
objector(s) are acceptable;
    (3) Indicate any specific technical assistance that the incumbent 
LEC is willing to give to the objectors; and
    (4) Provide any other relevant information.
    (e) Resolution. If an objection is filed pursuant to paragraph (c) 
of this section, then the Chief, Wireline Competition Bureau, will issue 
an order determining a reasonable public notice period, provided 
however, that if an incumbent LEC does not file a response within the 
time period allotted, or if the incumbent LEC's response accepts the 
latest implementation date stated by an objector, then the incumbent 
LEC's public notice shall be deemed amended to specify the 
implementation date requested by the objector, without further 
Commission action. An incumbent LEC must amend its public notice to 
reflect any change in the applicable implementation date pursuant to 
Sec. 51.329(b).

[61 FR 47352, Sept. 6, 1996, as amended at 67 FR 13226, Mar. 21, 2002]



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

[[Page 48]]

section 251 of the Act. Such determinations shall be made on a case-by-
case basis.



Sec. 51.403  Carriers eligible for suspension or modification under section
 251(f)(2) of the Act.

    A LEC is not eligible for a suspension or modification of the 
requirements of section 251(b) or section 251(c) of the Act pursuant to 
section 251(f)(2) of the Act if such LEC, at the holding company level, 
has two percent or more of the subscriber lines installed in the 
aggregate nationwide.



Sec. 51.405  Burden of proof.

    (a) Upon receipt of a bona fide request for interconnection, 
services, or access to unbundled network elements, a rural telephone 
company must prove to the state commission that the rural telephone 
company should be entitled, pursuant to section 251(f)(1) of the Act, to 
continued exemption from the requirements of section 251(c) of the Act.
    (b) A LEC with fewer than two percent of the nation's subscriber 
lines installed in the aggregate nationwide must prove to the state 
commission, pursuant to section 251(f)(2) of the Act, that it is 
entitled to a suspension or modification of the application of a 
requirement or requirements of section 251(b) or 251(c) of the Act.
    (c) In order to justify continued exemption under section 251(f)(1) 
of the Act once a bona fide request has been made, an incumbent LEC must 
offer evidence that the application of the requirements of section 
251(c) of the Act would be likely to cause undue economic burden beyond 
the economic burden that is typically associated with efficient 
competitive entry.
    (d) In order to justify a suspension or modification under section 
251(f)(2) of the Act, a LEC must offer evidence that the application of 
section 251(b) or section 251(c) of the Act would be likely to cause 
undue economic burden beyond the economic burden that is typically 
associated with efficient competitive entry.



                     Subpart F--Pricing of Elements



Sec. 51.501  Scope.

    (a) The rules in this subpart apply to the pricing of network 
elements, interconnection, and methods of obtaining access to unbundled 
elements, including physical collocation and virtual collocation.
    (b) As used in this subpart, the term ``element'' includes network 
elements, interconnection, and methods of obtaining interconnection and 
access to unbundled elements.



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

[[Page 49]]

functions that are directly attributable to, or reasonably identifiable 
as incremental to, such element, calculated taking as a given the 
incumbent LEC's provision of other elements.
    (1) Efficient network configuration. The total element long-run 
incremental cost of an element should be measured based on the use of 
the most efficient telecommunications technology currently available and 
the lowest cost network configuration, given the existing location of 
the incumbent LEC's wire centers.
    (2) Forward-looking cost of capital. The forward-looking cost of 
capital shall be used in calculating the total element long-run 
incremental cost of an element.
    (3) Depreciation rates. The depreciation rates used in calculating 
forward-looking economic costs of elements shall be economic 
depreciation rates.
    (c) Reasonable allocation of forward-looking common costs--(1) 
Forward-looking common costs. Forward-looking common costs are economic 
costs efficiently incurred in providing a group of elements or services 
(which may include all elements or services provided by the incumbent 
LEC) that cannot be attributed directly to individual elements or 
services.
    (2) Reasonable allocation. (i) The sum of a reasonable allocation of 
forward-looking common costs and the total element long-run incremental 
cost of an element shall not exceed the stand-alone costs associated 
with the element. In this context, stand-alone costs are the total 
forward-looking costs, including corporate costs, that would be incurred 
to produce a given element if that element were provided by an efficient 
firm that produced nothing but the given element.
    (ii) The sum of the allocation of forward-looking common costs for 
all elements and services shall equal the total forward-looking common 
costs, exclusive of retail costs, attributable to operating the 
incumbent LEC's total network, so as to provide all the elements and 
services offered.
    (d) Factors that may not be considered. The following factors shall 
not be considered in a calculation of the forward-looking economic cost 
of an element:
    (1) Embedded costs. Embedded costs are the costs that the incumbent 
LEC incurred in the past and that are recorded in the incumbent LEC's 
books of accounts;
    (2) Retail costs. Retail costs include the costs of marketing, 
billing, collection, and other costs associated with offering retail 
telecommunications services to subscribers who are not 
telecommunications carriers, described in Sec. 51.609;
    (3) Opportunity costs. Opportunity costs include the revenues that 
the incumbent LEC would have received for the sale of telecommunications 
services, in the absence of competition 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

[[Page 50]]

the costs of providing the elements are incurred.
    (b) The costs of dedicated facilities shall be recovered through 
flat-rated charges.
    (c) The costs of shared facilities shall be recovered in a manner 
that efficiently apportions costs among users. Costs of shared 
facilities may be apportioned either through usage-sensitive charges or 
capacity-based flat-rated charges, if the state commission finds that 
such rates reasonably reflect the costs imposed by the various users.
    (d) Recurring costs shall be recovered through recurring charges, 
unless an incumbent LEC proves to a state commission that such recurring 
costs are de minimis. Recurring costs shall be considered de minimis 
when the costs of administering the recurring charge would be excessive 
in relation to the amount of the recurring costs.
    (e) State commissions may, where reasonable, require incumbent LECs 
to recover nonrecurring costs through recurring charges over a 
reasonable period of time. Nonrecurring charges shall be allocated 
efficiently among requesting telecommunications carriers, and shall not 
permit an incumbent LEC to recover more than the total forward-looking 
economic cost of providing the applicable element.
    (f) State commissions shall establish different rates for elements 
in at least three defined geographic areas within the state to reflect 
geographic cost differences.
    (1) To establish geographically-deaveraged rates, state commissions 
may use existing density-related zone pricing plans described in 
Sec. 69.123 of this chapter, or other such cost-related zone plans 
established pursuant to state law.
    (2) In states not using such existing plans, state commissions must 
create a minimum of three cost-related rate zones.

[61 FR 45619, Aug. 29, 1996, as amended at 64 FR 32207, June 16, 1999; 
64 FR 68637, Dec. 8, 1999]



Sec. 51.509  Rate structure standards for specific elements.

    In addition to the general rules set forth in Sec. 51.507, rates for 
specific elements shall comply with the following rate structure rules.
    (a) Local 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.

[[Page 51]]

    (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.)

                                  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

[[Page 52]]

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 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

[[Page 53]]

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]



                            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

[[Page 54]]

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 (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.

    Effective Date Note: At 67 FR 5700, Feb. 6, 2002, Sec. 51.609 was 
amended by revising paragraphs (c)(1),(c)(2), (c)(3), and (d), effective 
Aug. 6, 2002. At 67 FR 20052, Apr. 24, 2002, the effective date was 
delayed until Jan. 1, 2003.

[[Page 55]]

For the convenience of the user, the revised text is set forth as 
follows:

Sec. 51.609  Determination of avoided retail costs.

                                * * * * *

    (c) * * *
    (1) Include, as direct costs, the costs recorded in USOA accounts 
6611(product management and sales), 6613 (product advertising) and 6620 
(Services) (Secs. 32.6611, 32.6613 and 32.6620 of this chapter);
    (2) Include, as indirect costs, a portion of the costs recorded in 
USOA accounts 6121-6124 (general support expenses), 6720 (corporate 
operations expenses), and uncollectible telecommunications revenue 
included in 5300 (uncollectible revenue) (Secs. 32.6121 through 32.6124, 
32.6720 and 32.5300 of this chapter); and
    (3) Not include plant-specific expenses and plant non-specific 
expenses, other than general support expenses (Secs. 32.6112 through 
32.6114, 32.6211 through 32.6560 of this chapter).
    (d) Costs included in accounts 6611, 6613 and 6620 described in 
paragraph (c) of this section (Secs. 32.6611, 32.6613 and 32.6620 of 
this chapter) may be included in wholesale rates only to the extent that 
the incumbent LEC proves to a state commission that specific costs in 
these accounts will be incurred and are not avoidable with respect to 
services sold at wholesale, or that specific costs in these accounts are 
not included in the retail prices of resold services. Costs included in 
accounts 6112 through 6114 and 6211 through 6560 described in paragraph 
(c) of this section (Secs. 32.6112 through 32.6114, 32.6211 through 
32.6560 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.

                                * * * * *



Sec. 51.611  Interim wholesale rates.

    (a) If a state commission cannot, based on the information available 
to it, establish a wholesale rate using the methodology prescribed in 
Sec. 51.609, then the state commission may elect to establish an interim 
wholesale rate as described in paragraph (b) of this section.
    (b) The state commission may establish interim wholesale rates that 
are at least 17 percent, and no more than 25 percent, below the 
incumbent LEC's existing retail rates, and shall articulate the basis 
for selecting a particular discount rate. The same discount percentage 
rate shall be used to establish interim wholesale rates for each 
telecommunications service.
    (c) A state commission that establishes interim wholesale rates 
shall, within a reasonable period of time thereafter, establish 
wholesale rates on the basis of an avoided retail cost study that 
complies with Sec. 51.609.



Sec. 51.613  Restrictions on resale.

    (a) Notwithstanding Sec. 51.605(b), the following types of 
restrictions on resale may be imposed:
    (1) Cross-class selling. A state commission may permit an incumbent 
LEC to prohibit a requesting telecommunications carrier that purchases 
at wholesale rates for resale, telecommunications services that the 
incumbent LEC makes available only to residential customers or to a 
limited class of residential customers, from offering such services to 
classes of customers that are not eligible to subscribe to such services 
from the incumbent LEC.
    (2) Short term promotions. An incumbent LEC shall apply the 
wholesale discount to the ordinary rate for a retail service rather than 
a special promotional rate only if:
    (i) Such promotions involve rates that will be in effect for no more 
than 90 days; and
    (ii) The incumbent LEC does not use such promotional offerings to 
evade the wholesale rate obligation, for example by making available a 
sequential series of 90-day promotional rates.
    (b) With respect to any restrictions on resale not permitted under 
paragraph (a), an incumbent LEC may impose a restriction only if it 
proves to the state commission that the restriction is reasonable and 
nondiscriminatory.
    (c) Branding. Where operator, call completion, or directory 
assistance service is part of the service or service package an 
incumbent LEC offers for resale, failure by an incumbent LEC to comply 
with reseller unbranding or rebranding requests shall constitute a 
restriction on resale.
    (1) An incumbent LEC may impose such a restriction only if it proves 
to

[[Page 56]]

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 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

[[Page 57]]

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.
    (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

[[Page 58]]

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 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

[[Page 59]]

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 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

[[Page 60]]

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.



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

[[Page 61]]

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 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

[[Page 62]]

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.



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

[[Page 63]]

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 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

[[Page 64]]

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 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

[[Page 65]]

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).
    (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.

[[Page 66]]

    (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.
    (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.

[[Page 67]]

    (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);
    (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;

[[Page 68]]

    (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.
    (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

[[Page 69]]

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 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.

[[Page 70]]

    (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 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

[[Page 71]]

February 1 for the preceding reporting period ending on December 31, and 
on or before August 1 for the preceding reporting period ending on June 
30. Mandatory reporting shall commence August 1, 2000.
    (ii) State commissions may reduce the reporting frequency for NPAs 
in their states to annual. Reporting carriers operating in such NPAs 
shall file forecast and utilization reports annually on or before August 
1 for the preceding reporting period ending on June 30, commencing 
August 1, 2000.
    (iii) A state commission seeking to reduce the reporting frequency 
pursuant to paragraph (f) (6)(ii) of this section shall notify the 
Wireline Competition Bureau and the NANPA in writing prior to reducing 
the reporting frequency.
    (7) Access to data and confidentiality--States shall have access to 
data reported to the NANPA provided that they have appropriate 
protections in place to prevent public disclosure of disaggregated, 
carrier-specific data.
    (g) Applications for numbering resources--(1) General requirements. 
All applications for numbering resources must include the company name, 
company headquarters address, OCN, parent company's OCN(s), and the 
primary type of business in which the numbering resources will be used.
    (2) Initial numbering resources. Applications for initial numbering 
resources shall include evidence that:
    (i) The applicant is authorized to provide service in the area for 
which the numbering resources are being requested; and
    (ii) The applicant is or will be capable of providing service within 
sixty (60) days of the numbering resources activation date.
    (3) Growth numbering resources. (i) Applications for growth 
numbering resources shall include:
    (A) A Months-to-Exhaust Worksheet that provides utilization by rate 
center for the preceding six months and projected monthly utilization 
for the next twelve (12) months; and
    (B) The applicant's current numbering resource utilization level for 
the rate center in which it is seeking growth numbering resources.
    (ii) The numbering resource utilization level shall be calculated by 
dividing all assigned numbers by the total numbering resources in the 
applicant's inventory and multiplying the result by 100. Numbering 
resources activated in the Local Exchange Routing Guide (LERG) within 
the preceding 90 days of reporting utilization levels may be excluded 
from the utilization calculation.
    (iii) All service providers shall maintain no more than a six-month 
inventory of telephone numbers in each rate center or service area in 
which it provides telecommunications service.
    (iv) The NANPA shall withhold numbering resources from any U.S. 
carrier that fails to comply with the reporting and numbering resource 
application requirements established in this part. The NANPA shall not 
issue numbering resources to a carrier without an OCN. The NANPA must 
notify the carrier in writing of its decision to withhold numbering 
resources within ten (10) days of receiving a request for numbering 
resources. The carrier may challenge the NANPA's decision to the 
appropriate state regulatory commission. The state commission may affirm 
or overturn the NANPA's decision to withhold numbering resources from 
the carrier based on its determination of compliance with the reporting 
and numbering resource application requirements herein.
    (4) Non-compliance. The NANPA shall withhold numbering resources 
from any U.S. carrier that fails to comply with the reporting and 
numbering resource application requirements established in this part. 
The NANPA shall not issue numbering resources to a carrier without an 
Operating Company Number (OCN). The NANPA must notify the carrier in 
writing of its decision to withhold numbering resources within ten (10) 
days of receiving a request for numbering resources. The carrier may 
challenge the NANPA's decision to the appropriate state regulatory 
commission. The state commission may affirm, or may overturn, the 
NANPA's decision to withhold numbering resources from the carrier based 
on its determination that the carrier has complied with the reporting 
and

[[Page 72]]

numbering resource application requirements herein. The state commission 
also may overturn the NANPA's decision to withhold numbering resources 
from the carrier based on its determination that the carrier has 
demonstrated a verifiable need for numbering resources and has exhausted 
all other available remedies.
    (5) State access to applications. State regulatory commissions shall 
have access to service provider's applications for numbering resources. 
The state commissions should request copies of such applications from 
the service providers operating within their states, and service 
providers must comply with state commission requests for copies of 
numbering resource applications. Carriers that fail to comply with a 
state commission request for numbering resource application materials 
shall be denied numbering resources.
    (h) National utilization threshold. All applicants for growth 
numbering resources shall achieve a 60% utilization threshold, 
calculated in accordance with paragraph (g)(3)(ii) of this section, for 
the rate center in which they are requesting growth numbering resources. 
This 60% utilization threshold shall increase by 5% on June 30, 2002, 
and annually thereafter until the utilization threshold reaches 75%.
    (i) Reclamation of numbering resources. (1) Reclamation refers to 
the process by which service providers are required to return numbering 
resources to the NANPA or the Pooling Administrator.
    (2) State commissions may investigate and determine whether service 
providers have activated their numbering resources and may request proof 
from all service providers that numbering resources have been activated 
and assignment of telephone numbers has commenced.
    (3) Service providers may be required to reduce contamination levels 
to facilitate reclamation and/or pooling.
    (4) State commissions shall provide service providers an opportunity 
to explain the circumstances causing the delay in activating and 
commencing assignment of their numbering resources prior to initiating 
reclamation.
    (5) The NANPA and the Pooling Administrator shall abide by the state 
commission's determination to reclaim numbering resources if the state 
commission is satisfied that the service provider has not activated and 
commenced assignment to end users of their numbering resources within 
six months of receipt.
    (6) The NANPA and Pooling Administrator shall initiate reclamation 
within sixty days of expiration of the service provider's applicable 
activation deadline.
    (7) If a state commission declines to exercise the authority 
delegated to it in this paragraph, the entity or entities designated by 
the Commission to serve as the NANPA shall exercise this authority with 
respect to NXX codes and the Pooling Administrator shall exercise this 
authority with respect to thousands-blocks. The NANPA and the Pooling 
Administrator shall consult with the Wireline Competition Bureau prior 
to exercising the authority delegated to it in this provision.
    (j) Sequential number assignment. (1) All service providers shall 
assign all available telephone numbers within an 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

[[Page 73]]

resources to that service provider in the applicable NPA until the 
service provider demonstrates that it does not have sufficient numbering 
resources to meet a specific customer request.
    (k) Numbering audits. (1) All telecommunications service providers 
shall be subject to ``for cause'' and random audits to verify carrier 
compliance with Commission regulations and applicable industry 
guidelines relating to numbering administration.
    (2) The Enforcement Bureau will oversee the conduct and scope of all 
numbering audits conducted under the Commission's jurisdiction, and 
determine the audit procedures necessary to perform the audit. Numbering 
audits performed by independent auditors pursuant to this section shall 
be conducted in accordance with generally accepted auditing standards 
and the American Institute of Certified Public Accountants' standards 
for compliance attestation engagements, as supplemented by the guidance 
and direction of the Chief of the Enforcement Bureau.
    (3) Requests for ``for cause'' audits shall be forwarded to the 
Chief of the Enforcement Bureau, with a copy to the Chief of the Common 
Carrier Bureau. Requests must state the reason for which a ``for cause'' 
audit is being requested and include documentation of the alleged 
anomaly, inconsistency, or violation of the Commission rules or orders 
or applicable industry guidelines. The Chief of the Enforcement Bureau 
will provide carriers up to 30 days to provide a written response to a 
request for a ``for cause'' audit.

[61 FR 47353, Sept. 6, 1996, as amended at 62 FR 55182, Oct. 23, 1997; 
65 FR 37707, June 16, 2000; 66 FR 9531, Feb. 8, 2001; 67 FR 6434, Feb. 
12, 2002; 67 FR 13226, Mar. 21, 2002]



Sec. 52.16  Billing and Collection Agent.

    The B&C Agent shall:
    (a) Calculate, assess, bill and collect payments for all numbering 
administration functions and distribute funds to the NANPA, or other 
agent designated by the Common Carrier Bureau that performs functions 
related to numbering administration, on a monthly basis;
    (b) Distribute to carriers the ``Telecommunications Reporting 
Worksheet,'' described in Sec. 52.17(b).
    (c) Keep confidential all data obtained from carriers and not 
disclose such data in company-specific form unless authorized by the 
Commission. Subject to any restrictions imposed by the Chief of the 
Wireline Competition Bureau, the B & C Agent may share data obtained 
from carriers with the administrators of the universal service support 
mechanism (See 47 CFR 54.701 of this chapter), the TRS Fund (See 47 CFR 
64.604(c)(4)(iii)(H) of this chapter), and the local number portability 
cost recovery (See 47 CFR 52.32). The B & C Agent shall keep 
confidential all data obtained from other administrators. The B & C 
Agent shall use such data, from carriers or administrators, only for 
calculating, collecting and verifying payments. The Commission shall 
have access to all data reported to the Administrator. Contributors may 
make requests for Commission 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; 67 FR 13226, Mar. 21, 2002]



Sec. 52.17  Costs of number administration.

    All telecommunications carriers in the United States shall 
contribute on a

[[Page 74]]

competitively neutral basis to meet the costs of establishing numbering 
administration.
    (a) Contributions to support numbering administration shall be the 
product of the contributors' end-user telecommunications revenues for 
the prior calendar year and a contribution factor determined annually by 
the Chief of the Common Carrier Bureau; such contributions to be no less 
than twenty-five dollars ($25). The contribution factor shall be based 
on the ratio of expected number administration expenses to end-user 
telecommunications revenues. Carriers that have no end-user 
telecommunications revenues shall contribute twenty-five dollars ($25). 
In the event that contributions exceed or are inadequate to cover 
administrative costs, the contribution factor for the following year 
shall be adjusted by an appropriate amount.
    (b) All telecommunications carriers in the United States shall 
complete and submit a ``Telecommunications Reporting Worksheet'' (as 
published by the Commission in the Federal Register), which sets forth 
the information needed to calculate contributions referred to in 
paragraph (a) of this section. The worksheet shall be certified to by an 
officer of the contributor, and subject to verification by the 
Commission or the B & C Agent at the discretion of the Commission. The 
Chief of the Common Carrier Bureau may waive, reduce, modify, or 
eliminate contributor reporting requirements that prove unnecessary and 
require additional reporting requirements that the Bureau deems 
necessary to the sound and efficient administration of the number 
administration cost recovery.

[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;

[[Page 75]]

    (2) An area code boundary realignment, which occurs when the 
boundary lines between two adjacent area codes are shifted to allow the 
transfer of some central office codes from an area code for which 
central office codes remain unassigned to an area code for which few or 
no central office codes are left for assignment; or
    (3) An all services area code overlay, which occurs when a new area 
code is introduced to serve the same geographic area as one or more 
existing area code(s), subject to the following conditions:
    (i) No all services area code overlay may be implemented unless all 
numbering resources in the new overlay area code are assigned to those 
entities requesting assignment on a first-come, first-serve basis, 
regardless of the identity of, technology used by, or type of service 
provided by that entity, except to the extent that a technology- or 
service-specific overlay is authorized by the Commission. No group of 
telecommunications carriers shall be excluded from assignment of 
numbering resources in the existing area code, or be assigned such 
resources only from the all services overlay area code, based solely on 
that group's provision of a specific type of telecommunications service 
or use of a particular technology; and
    (ii) No area code overlay may be implemented unless there exists, at 
the time of implementation, mandatory ten-digit dialing for every 
telephone call within and between all area codes in the geographic area 
covered by the overlay area code.
    (4) A technology-specific or service-specific overlay, which occurs 
when a new area code is introduced to serve the same geographic area as 
one or more existing area code(s) and numbering resources in the new 
area code overlay are assigned to a specific technology(ies) or 
service(s). State commissions may not implement a technology-specific or 
service-specific overlay without express authority from the Commission.

[61 FR 47353, Sept. 6, 1996, as amended at 64 FR 63617, Nov. 16, 1998; 
64 FR 62984, Nov. 18, 1999; 67 FR 6434, Feb. 12, 2002]

    Effective Date Note: At 67 FR 6434, Feb. 12, 2002, Sec. 52.19 was 
amended by revising paragraph (c)(3)(i) and adding paragraph (c)(4). 
These paragraphs contain information collection requirements and will 
not become effective until approval has been given by the Office of 
Management and Budget.



                      Subpart C--Number Portability

    Source: 61 FR 38637, July 25, 1996, unless otherwise noted. 
Redesignated at 61 FR 47353, Sept. 6, 1996.



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.

[[Page 76]]

    (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 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

[[Page 77]]

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.
    (r) The term 100 largest Metropolitan Statistical Areas (MSAs) 
refers to the MSAs set forth in the appendix to this part and any 
subsequent MSAs identified by U.S. Census Bureau data to be in the 
largest 100 MSAs.

[61 FR 38637, July 25, 1996. Redesignated at 61 FR 47353, Sept. 6, 1996, 
as amended at 61 FR 47355, Sept. 6, 1996; 63 FR 68203, Dec. 10, 1998; 67 
FR 6435, Feb. 12, 2002]



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;
    (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

[[Page 78]]

    (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, Wireline Competition Bureau, shall monitor the 
progress of local exchange carriers implementing number portability, and 
may direct such carriers to take any actions necessary to ensure 
compliance with the deployment schedule set forth in the appendix to 
this part 52.
    (g) Carriers that are members of the Illinois Local Number 
Portability Workshop must conduct a field test of any technically 
feasible long-term database method for number portability in the 
Chicago, Illinois, area. The carriers participating in the test must 
jointly file with the Common Carrier Bureau a report of their findings 
within 30 days following completion of the test. The Chief, Common 
Carrier Bureau, shall monitor developments during the field test, and 
may adjust the field test completion deadline as necessary.

[61 FR 38637, July 25, 1996, as amended at 62 FR 18294, Apr. 15, 1997; 
67 FR 13226, Mar. 21, 2002]

    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

[[Page 79]]

downstream databases, and the technical specifications for the regional 
databases.
    (e) Once the NANC has selected the LNPA(s) and determined the 
locations of the regional databases, it must report its decisions to the 
Commission.
    (f) The information contained in the regional databases shall be 
limited to the information necessary to route telephone calls to the 
appropriate telecommunications carriers. The NANC shall determine what 
specific information is necessary.
    (g) Any state may opt out of its designated regional database and 
implement a state-specific database. A state must notify the Wireline 
Competition Bureau and NANC that it plans to implement a state-specific 
database within 60 days from the release date of the Public Notice 
issued by the Chief, Wireline Competition Bureau, identifying the 
administrator selected by the NANC and the proposed locations of the 
regional databases. Carriers may challenge a state's decision to opt out 
of the regional database system by filing a petition with the 
Commission.
    (h) Individual state databases must meet the national requirements 
and operational standards recommended by the NANC and adopted by the 
Commission. In addition, such state databases must be technically 
compatible with the regional system of databases and must not interfere 
with the scheduled implementation of the regional databases.
    (i) Individual carriers may download information necessary to 
provide number portability from the regional databases into their own 
downstream databases. Individual carriers may mix information needed to 
provide other services or functions with the information downloaded from 
the regional databases at their own downstream databases. Carriers may 
not withhold any information necessary to provide number portability 
from the regional databases on the grounds that such data has been 
combined with other information in its downstream database.

[61 FR 38637, July 25, 1996. Redesignated at 61 FR 47353, Sept. 6, 1996, 
as amended at 67 FR 13226, Mar. 21, 2002]



Sec. 52.26  NANC Recommendations on Local Number Portability Administration.

    (a) Local number portability administration 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

[[Page 80]]

the basis for the recommendation adopted by the NANC. The NANC Chair 
shall submit its proposed resolution of the dispuited issue to the Chief 
of the Wireline Competition Bureau as a recommendation for Commission 
review. The Chief of the Wireline Competition Bureau will place the 
NANC's proposed resolution on public notice. Recommendations adopted by 
the NANC and forwarded to the Bureau may be implemented by the parties 
pending review of the recommendation. Within 90 days of the conclusion 
of the comment cycle, the Chief of the Wireline Competition Bureau may 
issue an order adopting, modifying, or rejecting the recommendation. If 
the Chief does not act within 90 days of the conclusion of the comment 
cycle, the recommendation will be deemed to have been adopted by the 
Bureau.
    (c) The Director of the Federal Register approves this incorporation 
by reference in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. 
Copies of the Working Group Report and its appendices can be obtained 
from the Commission's contract copier, 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; 
67 FR 13226, Mar. 21, 2002]



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 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.

[[Page 81]]



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 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;

[[Page 82]]

    (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 service in the areas that 
regional database serves, ii) to the sum of the intrastate, interstate, 
and international end-user telecommunications revenues that all 
telecommunications carriers derive from providing telecommunications 
service in the areas that regional database serves.
    (b) All telecommunications carriers providing service in the United 
States shall complete and submit a ``Telecommunications Reporting 
Worksheet'' (as published by the Commission in the Federal Register), 
which sets forth the information needed to calculate contributions 
referred to in paragraph (a) of this section. The worksheet shall be 
certified to by an officer of the contributor, and subject to 
verification by the Commission or the administrator at the discretion of 
the Commission. The Chief of the Wireline Competition Bureau may waive, 
reduce, modify, or eliminate contributor reporting requirements that 
prove unnecessary and require additional reporting requirements that the 
Bureau deems necessary to the sound and efficient administration of 
long-term number portability.
    (c) Local number portability administrators shall keep all data 
obtained from contributors confidential and shall not disclose such data 
in company-specific form unless directed to do so by the Commission. 
Subject to any restrictions imposed by the Chief of the Wireline 
Competition Bureau, the local number portability administrators may 
share data obtained from carriers with the administrators of the 
universal service support mechanism (See 47 CFR 54.701 of this chapter), 
the TRS Fund (See 47 CFR 64.604(c)(4)(iii)(H) of this chapter), and the 
North American Numbering Plan cost recovery (See 47 CFR 52.16). The 
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

[[Page 83]]

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; 
67 FR 13226, Mar. 21, 2002]



Sec. 52.33  Recovery of carrier-specific costs directly related to providing
 long-term number portability.

    (a) Incumbent local exchange carriers may recover their carrier-
specific costs directly related to providing long-term number 
portability by establishing in tariffs filed with the Federal 
Communications Commission a monthly number-portability charge, as 
specified in paragraph (a)(1) of this section, a number portability 
query-service charge, as specified in paragraph (a)(2) of this section, 
and a monthly number-portability query/administration charge, as 
specified in paragraph (a)(3) of this section.
    (1) The monthly number-portability charge may take effect no earlier 
than February 1, 1999, on a date the incumbent local exchange carrier 
selects, and may end no later than 5 five years after the incumbent 
local exchange carrier's monthly number-portability charge takes effect.
    (i) An incumbent local exchange carrier may assess each end user it 
serves in the 100 largest metropolitan statistical areas, and each end 
user it serves from a number-portability-capable switch outside the 100 
largest metropolitan statistical areas, one monthly number-portability 
charge per line except that:
    (A) One PBX trunk shall receive nine monthly number-portability 
charges.
    (B) One PRI ISDN line shall receive five monthly number-portability 
charges.
    (C) Lifeline Assistance Program customers shall not receive the 
monthly number-portability charge.
    (ii) An incumbent local exchange carrier may assess on carriers that 
purchase the incumbent local exchange carrier's switching ports as 
unbundled network elements under section 251 of the Communications Act, 
and/or Feature Group A access lines, and resellers of the incumbent 
local exchange carrier's local service, the same charges as described in 
paragraph (a)(1)(i) of this section, as if the incumbent local exchange 
carrier were serving those carriers' end users.
    (iii) An incumbent local exchange carrier may not assess a monthly 
number-portability charge for local loops carriers purchase as unbundled 
network elements under section 251.
    (iv) The incumbent local exchange carrier shall levelize the monthly 
number-portability charge over five years by setting a rate for the 
charge at which the present value of the revenue recovered by the charge 
does not exceed the present value of the cost being recovered, using a 
discount rate equal to the rate of return on investment which the 
Commission has prescribed for interstate access services pursuant to 
Part 65 of the Commission's Rules.
    (2) The number portability query-service charge may recover only 
carrier-specific costs directly related to providing long-term number 
portability that the incumbent local exchange carrier incurs to provide 
long-term number portability query service to carriers on a prearranged 
and default basis.
    (3) An incumbent local exchange carrier serving an area outside the 
100 largest metropolitan statistical areas that is not number-
portability capable but that participates in an extended area service 
calling plan with any one of the 100 largest metropolitan statistical 
areas or with an adjacent number portability-capable local exchange 
carrier may assess each end user it serves one monthly number-
portability query/administration charge per line to recover the costs of 
queries, as specified in paragraph (a)(2) of this section, and

[[Page 84]]

carrier-specific costs directly related to the carrier's allocated share 
of the regional local number portability administrator's costs, except 
that per-line monthly number-portability query/administration charges 
shall be assigned as specified in paragraph (a)(1) of this section with 
respect to monthly number-portability charges.
    (i) Such incumbent local exchange carriers may assess a separate 
monthly number-portability charge as specified in paragraph (a)(1) of 
this section but such charge may recover only the costs incurred to 
implement number portability functionality and shall not include costs 
recovered through the monthly number-portability query/administration 
charge.
    (ii) The monthly number-portability query/administration charge may 
end no later than five years after the incumbent local exchange 
carrier's monthly number-portability query/administration charge takes 
effect. The monthly number-portability query/administration charge may 
be collected over a different five-year period than the monthly number-
portability charge. These five-year periods may run either consecutively 
or concurrently, in whole or in part.
    (b) All telecommunications carriers other than incumbent local 
exchange carriers may recover their number portability costs in any 
manner consistent with applicable state and federal laws and 
regulations.

[63 FR 35161, June 29, 1998, as amended at 67 FR 40620, June 13, 2002]

    Effective Date Notes: 1. At 63 FR 35161, June 29, 1998, Sec. 52.33 
was added. Paragraph (a)(1) contains information collection requirements 
and will not become effective until approval has been given by the 
Office of Management and Budget.
    2. At 67 FR 40620, June 13, 2002, Sec. 52.33 was amended by adding 
paragraph (a)(3), which contains information collection requirements and 
will not become effective until approval has been given by the Office of 
Management and Budget.



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,

[[Page 85]]

as well as the period of time between disconnection or cancellation of a 
toll free number and the point at which that toll free number may be 
reassigned to another toll free subscriber.
    (4) Reserved Status. The toll free number has been reserved from the 
Service Management System database by a Responsible Organization for a 
toll free subscriber.
    (5) Seasonal Numbers. Toll free numbers held by toll free 
subscribers who do not have a year-round need for a toll free number.
    (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

[[Page 86]]

service associated with a toll free number before switching that toll 
free number from reserved or assigned to working status.
    (c) Responsible Organizations shall not maintain a toll free number 
in reserved status if there is not a prospective toll free subscriber 
requesting that toll free number.
    (d) A Responsible Organization's act of reserving a number from the 
Service Management System database shall serve as that Responsible 
Organization's certification that there is an identified toll free 
subscriber agreeing to be billed for service associated with the toll 
free number.
    (e) Tariff Provision. The following provision shall be included in 
the Service Management System tariff and in the local exchange carriers' 
toll free database access tariffs:

    [T]he Federal Communications Commission (``FCC'') has concluded that 
warehousing, which the FCC defines as Responsible Organizations, either 
directly or indirectly through an affiliate, reserving toll free numbers 
from the SMS database without having an identified toll free subscriber 
from whom those numbers are being reserved, is an unreasonable practice 
under Sec. 201(b) of the Communications Act and is inconsistent with the 
Commission's obligation under Sec. 251(e) of the Communications Act to 
ensure that numbers are made available on an equitable basis; and if a 
Responsible Organization does not have an identified toll free 
subscriber agreeing to be billed for service associated with each toll 
free number reserved from the database, or if a Responsible Organization 
does not have an identified, billed toll free subscriber before 
switching a number from reserved or assigned to working status, then 
there is a rebuttable presumption that the Responsible Organization is 
warehousing numbers. Responsible Organizations that warehouse numbers 
will be subject to penalties.



Sec. 52.107  Hoarding.

    (a) As used in this section, hoarding is the acquisition by a toll 
free subscriber from a Responsible Organization of more toll free 
numbers than the toll free subscriber intends to use for the provision 
of toll free service. The definition of hoarding also includes number 
brokering, which is the selling of a toll free number by a private 
entity for a fee.
    (1) Toll free subscribers shall not hoard toll free numbers.
    (2) No person or entity shall acquire a toll free number for the 
purpose of selling the toll free number to another entity or to a person 
for a fee.
    (3) Routing multiple toll free numbers to a single toll free 
subscriber will create a rebuttable presumption that the toll free 
subscriber is hoarding or brokering toll free numbers.
    (b) Tariff Provision. The following provision shall be included in 
the Service Management System tariff and in the local exchange carriers' 
toll free database access tariffs:

    [T]he Federal Communications Commission (``FCC'') has concluded that 
hoarding, defined as the acquisition of more toll free numbers than one 
intends to use for the provision of toll free service, as well as the 
sale of a toll free number by a private entity for a fee, is contrary to 
the public interest in the conservation of the scarce toll free number 
resource and contrary to the FCC's responsibility to promote the orderly 
use and allocation of toll free numbers.



Sec. 52.109  Permanent cap on number reservations.

    (a) A Responsible Organization may have in reserve status, at any 
one time, either 2000 toll free numbers or 7.5 percent of that 
Responsible Organization's numbers in working status, whichever is 
greater.
    (b) A Responsible Organization shall never reserve more than 3 
percent of the quantity of toll free numbers in spare status as of the 
previous Sunday at 12:01 a.m. Eastern Time.
    (c) The Wireline Competition Bureau shall modify the quantity of 
numbers a Responsible Organization may have in reserve status or the 
percentage of numbers in the spare poll that a Responsible Organization 
may reserve when exigent circumstances make such

[[Page 87]]

action necessary. The Wireline Competition Bureau shall establish, 
modify, and monitor toll free number conservation plans when exigent 
circumstances necessitate such action.

[62 FR 20127, Apr. 25, 1997, as amended at 67 FR 13226, Mar. 21, 2002]



Sec. 52.111  Toll free number assignment.

    Toll free numbers shall be made available on a first-come, first-
served basis unless otherwise directed by the Commission.

[63 FR 16441, Apr. 3, 1998]

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

[[Page 88]]

 
Springfield, MA...............................................        86
Ventura, CA...................................................        72
Bakersfield, CA...............................................        84
Stockton, CA..................................................        94
Vallejo, CA...................................................        99
El Paso, TX...................................................        74
Little Rock, AR...............................................        90
Wichita, KS...................................................        97
New Haven, CT.................................................        91
Omaha, NE.....................................................        75
Albuquerque, NM...............................................        76
Tacoma, WA....................................................        77
 


[62 FR 18295, Apr. 15, 1997]

    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

[[Page 89]]

Pennsylvania, The Chesapeake and Potomac Telephone Company, The 
Chesapeake and Potomac Telephone Company of Maryland, The Chesapeake and 
Potomac Telephone Company of Virginia, The Chesapeake and Potomac 
Telephone Company of West Virginia, The Diamond State Telephone Company, 
The Ohio Bell Telephone Company, The Pacific Telephone and Telegraph 
Company, or Wisconsin Telephone Company; and
    (2) Includes any successor or assign of any such company that 
provides wireline telephone exchange service; but
    (3) Does not include an affiliate of any such company, other than an 
affiliate described in paragraphs (1) or (2) of this definition.
    In-Region InterLATA service. In-region interLATA service is 
interLATA service that originates in any of a BOC's in-region states, 
which are the states in which the BOC or any of its affiliates was 
authorized to provide wireline telephone exchange service pursuant to 
the reorganization plan approved under the AT&T Consent Decree, as in 
effect on February 7, 1996. For the purposes of this part, 800 service, 
private line service, or equivalent services that terminate in a BOC's 
in-region state and allow the called party to determine the interLATA 
carrier are considered to be in-region interLATA service.
    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;

[[Page 90]]

    (2) Offer interLATA services and BOC resold local exchange services 
as a bundled package under an integrated pricing schedule.
    (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.

[[Page 91]]



Sec. 53.205  Fulfillment of certain requests. [Reserved]



Sec. 53.207  Successor or assign.

    If a BOC transfers to an affiliated entity ownership of any network 
elements that must be provided on an unbundled basis pursuant to section 
251(c)(3) of the Act, such entity will be deemed to be an ``assign'' of 
the BOC under section 3(4) of the Act with respect to such transferred 
network elements. A BOC affiliate shall not be deemed a ``successor or 
assign'' of a BOC solely because it obtains network elements from the 
BOC pursuant to section 251(c)(3) of the Act.

[62 FR 2967, Jan. 21, 1997; 63 FR 34604, June 25, 1998]



Sec. 53.209  Biennial audit.

    (a) A Bell operating company required to operate a separate 
affiliate under section 272 of the Act shall obtain and pay for a 
Federal/State joint audit every two years conducted by an independent 
auditor to determine whether the Bell operating company has complied 
with the rules promulgated under section 272 and particularly the audit 
requirements listed in paragraph (b) of this section.
    (b) The independent audit shall determine:
    (1) Whether the separate affiliate required under section 272 of the 
Act has:
    (i) Operated independently of the Bell operating company;
    (ii) Maintained books, records, and accounts in the manner 
prescribed by the Commission that are separate from the books, records 
and accounts maintained by the Bell operating company;
    (iii) Officers, directors and employees that are separate from those 
of the Bell operating company;
    (iv) Not obtained credit under any arrangement that would permit a 
creditor, upon default, to have recourse to the assets of the Bell 
operating company; and
    (v) Conducted all transactions with the Bell operating company on an 
arm's length basis with the transactions reduced to writing and 
available for public inspection.
    (2) Whether or not the Bell operating company has:
    (i) Discriminated between the separate affiliate and any other 
entity in the provision or procurement of goods, services, facilities, 
and information, or the establishment of standards;
    (ii) Accounted for all transactions with the separate affiliate in 
accordance with the accounting principles and rules approved by the 
Commission.
    (3) Whether or not the Bell operating company and an affiliate 
subject to section 251(c) of the Act:
    (i) Have fulfilled requests from unaffiliated entities for telephone 
exchange service and exchange access within a period no longer than the 
period in which it provides such telephone exchange service and exchange 
access to itself or its affiliates;
    (ii) Have made available facilities, services, or information 
concerning its provision of exchange access to other providers of 
interLATA services on the same terms and conditions as it has to its 
affiliate required under section 272 that operates in the same market;
    (iii) Have charged its separate affiliate under section 272, or 
imputed to itself (if using the access for its provision of its own 
services), an amount for access to its telephone exchange service and 
exchange access that is no less than the amount charged to any 
unaffiliated interexchange carriers for such service; and
    (iv) Have provided any interLATA or intraLATA facilities or services 
to its interLATA affiliate and made available such services or 
facilities to all carriers at the same rates and on the same terms and 
conditions, and allocated the associated costs appropriately.
    (c) An independent audit shall be performed on the first full year 
of operations of the separate affiliate required under section 272 of 
the Act, and biennially thereafter.
    (d) The Chief, Enforcement Bureau, shall work with the regulatory 
agencies in the states having jurisdiction over the Bell operating 
company's local telephone services, to attempt to form a Federal/State 
joint audit team with the responsibility for overseeing the planning of 
the audit as specified in Sec. 53.211 and the analysis and evaluation of 
the audit as specified in Sec. 53.213. The Federal/State joint audit 
team may direct the independent auditor to take

[[Page 92]]

any actions necessary to ensure compliance with the audit requirements 
listed in paragraph (b) of this section. If the state regulatory 
agencies having jurisdiction choose not to participate in the Federal/
State joint audit team, the Chief, Enforcement Bureau, shall establish 
an FCC audit team to oversee and direct the independent auditor to take 
any actions necessary to ensure compliance with the audit requirements 
in paragraph (b) of this section.

[62 FR 2926, Jan. 21, 1997, as amended at 67 FR 13226, Mar. 21, 2002]



Sec. 53.211  Audit planning.

    (a) Before selecting 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, Enforcement Bureau, any accounting or rule 
interpretations necessary to complete the audit.

[62 FR 2926, Jan. 21, 1997, as amended at 67 FR 13226, Mar. 21, 2002]



Sec. 53.213  Audit analysis and evaluation.

    (a) Within 60 dates after the end of the audit period, but prior to 
discussing the audit findings with the Bell operating company or the 
separate affiliate, the independent auditor shall submit a draft of the 
audit report to the Federal/State joint audit team.
    (1) The Federal/State joint audit team shall have 45 days to review 
the audit findings and audit workpapers, and offer its recommendations 
concerning the conduct of the audit or the audit findings to the 
independent auditor. Exceptions of the Federal/State 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

[[Page 93]]

the independent auditor wishes to make to the response.
    (c) Within 10 days after receiving the response of the Bell 
operating company, the independent auditor shall make available for 
public inspection the final audit report by filing it with the 
Commission and the state regulatory agencies participating on the joint 
audit team.
    (d) Interested parties may file comments with the Commission within 
60 days after the audit report is made available for public inspection.

[62 FR 2927, Jan. 21, 1997]



          Subpart D--Manufacturing by Bell Operating Companies



Sec. 53.301  [Reserved]



      Subpart E--Electronic Publishing by Bell Operating Companies



Sec. 53.401  [Reserved]



                  Subpart F--Alarm Monitoring Services



Sec. 53.501  [Reserved]



PART 54--UNIVERSAL SERVICE--Table of Contents




                     Subpart A--General Information

Sec.
54.1  Basis and purpose.
54.5  Terms and definitions.
54.7  Intended use of federal universal service support.

               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 high-cost support.

      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.

[[Page 94]]

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.
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 Wireline Competition Bureau or the Commission.
54.723  Standard of review.
54.724  Time periods for Commission approval of Administrator decisions.
54.725  Universal service disbursements during pendency of a request for 
          review and Administrator decision.

    Subpart J--Interstate Access Universal Service Support Mechanism

54.800  Terms and definitions.
54.801  General.
54.802  Obligations of local exchange carriers and the Administrator.
54.803  Universal service zones.
54.804  Preliminary minimum access universal service support for a study 
          area calculated by the Administrator.
54.805  Zone and study area above benchmark revenues calculated by the 
          Administrator.
54.806  Calculation by the Administrator of interstate access universal 
          service support for areas served by price cap local exchange 
          carriers.
54.807  Interstate access universal service support.
54.808  Transition provisions and periodic calculation.
54.809  Carrier certification.

 Subpart K--Interstate Common Line Support Mechanism for Rate-of-Return 
                                Carriers

54.901  Calculation of Interstate Common Line Support.
54.902  Calculation of Interstate Common Line Support for transferred 
          exchanges.
54.903  Obligations of rate-of-return carriers and the Administrator.
54.904  Carrier certification.

    Authority: 47 U.S.C. 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.

[[Page 95]]

    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 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.
    Rate-of-return carrier. ``Rate-of-return carrier'' shall refer to 
any incumbent local exchange carrier not subject to price cap regulation 
as that term is defined in Sec. 61.3(x) of this chapter.
    Rural area. 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.

[[Page 96]]

    Technically feasible. ``Technically feasible'' means capable of 
accomplishment as evidenced by prior success under similar 
circumstances. For example, preexisting access at a particular point 
evidences the technical feasibility of access at substantially similar 
points. A determination of technical feasibility does not consider 
economic, accounting, billing, space or site except that space and site 
may be considered if there is no possibility of expanding available 
space.
    Telecommunications. ``Telecommunications'' is the transmission, 
between or among points specified by the user, of information of the 
user's choosing, without change in the form or content of the 
information as sent and received.
    Telecommunications carrier. A ``telecommunications carrier'' is any 
provider of telecommunications services, except that such term does not 
include aggregators of telecommunications services as defined in section 
226 of the Act. A telecommunications carrier shall be treated as a 
common carrier under the Act only to the extent that it is engaged in 
providing telecommunications services, except that the Commission shall 
determine whether the provision of fixed and mobile satellite service 
shall be treated as common carriage. This definition includes cellular 
mobile radio service (CMRS) providers, interexchange carriers (IXCs) 
and, to the extent they are acting as telecommunications carriers, 
companies that provide both telecommunications and information services. 
Private mobile radio service (PMRS) providers are telecommunications 
carriers to the extent they provide domestic or international 
telecommunications for a fee directly to the public.
    Telecommunications channel. ``Telecommunications channel'' means a 
telephone line, or, in the case of wireless communications, a 
transmittal line or cell site.
    Telecommunications service. ``Telecommunications service'' is the 
offering of telecommunications for a fee directly to the public, or to 
such classes of users as to be effectively available directly to the 
public, regardless of the facilities used.
    Website. The term ``website'' shall refer to any websites operated 
by the Administrator in connection with the schools and libraries 
support mechanism, the rural health care support mechanism, the high 
cost mechanism, and the low income mechanism.
    Wire center. A wire center is the location of a local switching 
facility containing one or more central offices, as defined in the 
Appendix to part 36 of this chapter. The wire center boundaries define 
the area in which all customers served by a given wire center are 
located.

[62 FR 32948, June 17, 1997, as amended at 62 FR 41303, Aug. 1, 1997; 63 
FR 70571, Dec. 21, 1998; 64 FR 67431, Dec. 1, 1999; 66 FR 30087, June 5, 
2001; 66 FR 59726, Nov. 30, 2001]



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

[[Page 97]]

of signaling that facilitates the transportation of signaling through 
the network, shortening call set-up time;
    (4) Single-party service or its functional equivalent. ``Single-
party service'' is telecommunications service that permits users to have 
exclusive use of a wireline subscriber loop or access line for each call 
placed, or, in the case of wireless telecommunications carriers, which 
use spectrum shared among users to provide service, a dedicated message 
path for the length of a user's particular transmission;
    (5) Access to emergency services. ``Access to emergency services'' 
includes access to services, such as 911 and enhanced 911, provided by 
local governments or other public safety organizations. 911 is defined 
as a service that permits a telecommunications user, by dialing the 
three-digit code ``911,'' to call emergency services through a Public 
Service Access Point (PSAP) operated by the local government. ``Enhanced 
911'' is defined as 911 service that includes the ability to provide 
automatic numbering information (ANI), which enables the PSAP to call 
back if the call is disconnected, and automatic location information 
(ALI), which permits emergency service providers to identify the 
geographic location of the calling party. ``Access to emergency 
services'' includes access to 911 and enhanced 911 services to the 
extent the local government in an eligible carrier's service area has 
implemented 911 or enhanced 911 systems;
    (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]

[[Page 98]]



       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 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

[[Page 99]]

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 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.

[[Page 100]]

    (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.
    (1) The Commission shall submit a petition to the state commission 
according to that state commission's procedures. The petition submitted 
to the relevant state commission shall contain:
    (i) The definition proposed by the Commission; and
    (ii) The Commission's decision presenting its reasons for adopting 
the proposed definition, including an analysis that takes into account 
the recommendations of any Federal-State Joint Board convened to provide 
recommendations with respect to the definition of a service area served 
by a rural telephone company.
    (2) The Commission's proposed definition shall not take effect until 
both the state commission and the Commission agree upon the definition 
of a rural service area, in accordance with paragraph (b) of this 
section and section 214(e)(5) of the Act.
    (e) The Commission delegates its authority under paragraphs (c) and 
(d) of this section to the Chief, Wireline Competition Bureau.

[62 FR 32948, June 17, 1997, as amended at 67 FR 13226, Mar. 21, 2002]



        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

[[Page 101]]

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
 
                                   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 Category/3 (Account 2210 + Account 2220 + Account 2230 + 
Account 2310 + Account 2410).

    (2) Telecommunications Plant--Other (Accounts 2002, 2003, 2005); 
Rural

[[Page 102]]

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 3/Account 2001.

    (3) Accumulated Depreciation for Central Office--switching (Account 
3100 associated with Account 2210) and Depreciation and Amortization 
Expense for Central Office--switching (Account 6560 associated with 
Account 2210) shall be allocated according to the following factor:

Account 2210 Category 3/Account 2210.

    (4) Accumulated Depreciation for General Support Assets (Account 
3100 associated with Account 2110) and Depreciation and Amortization 
Expense for General Support Assets (Account 6560 associated with Account 
2110) shall be allocated according to the following factor:

Account 2210 Category 3 / Account 2001.

    (5) Corporate Operations Expenses (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

[[Page 103]]

[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 unseparated local 
switching revenue requirement.
    (iv) The Administrator shall adjust each carrier's local switching 
support payment by the difference calculated in paragraph (e)(2)(iii) of 
this section no later than 15 months after the end of the calendar year 
for which historical data are submitted.
    (f) Calculation of the local switching revenue requirement for 
average schedule companies. (1) The local switching revenue requirement 
for average schedule companies, as defined in Sec. 69.605(c) of this 
chapter, shall be calculated in accordance with a formula approved or 
modified by the Commission. The Administrator shall submit to the 
Commission and the Common Carrier Bureau for review and approval a 
formula that simulates the disbursements that would be received pursuant 
to this section by a company that is representative of average schedule 
companies. For each annual period, the Administrator shall submit the 
formula, any proposed revisions of such formula, or a certification that 
no revisions to the formula are warranted on or before December 31 of 
each year.
    (2) The Commission delegates its authority to review, modify, and 
approve the formula submitted by the Administrator pursuant to this 
paragraph to the Chief, Wireline Competition Bureau.

[63 FR 2126, Jan. 13, 1998; 63 FR 33585, June 19, 1998, as amended at 67 
FR 13226, Mar. 21, 2002]

    Effective Date Note: At 67 FR 5701, Feb. 6, 2002, Sec. 54.301 was 
amended by revising the table in paragraph (b), and paragraphs (c)(2), 
(c)(5), and (d)(4), effective Aug. 6, 2002. At 67 FR 20052, Apr. 24, 
2002, the effective date was delayed until Jan. 1, 2003. For the 
convenience of the user the revised text is set forth as follows:

Sec. 54.301  Local switching support.

                                * * * * *

    (b) * * *

                                   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
                                   II
Rural Telephone Bank (RTB)     Included in Account 1410
 Stock.
Materials and Supplies.......  Account 1220.1
Cash Working Capital.........  Defined in 47 CFR 65.820(d)
 

[[Page 104]]

 
                                  III
Accumulated Depreciation.....  Account 3100
Accumulated Amortization.....  Included in Accounts 2005, 2680, 2690,
                                3410
Net Deferred Operating Income  Accounts 4100, 4340
 Taxes.
Network Support Expenses.....  Account 6110
General Support Expenses.....  Account 6120
Central Office Switching,      Accounts 6210, 6220, 6230
 Operator Systems, and
 Central Office Transmission
 Expenses.
Information Origination/       Account 6310
 Termination Expenses.
Cable and Wire Facilities      Account 6410
 Expenses.
Other Property, Plant and      Account 6510
 Equipment Expenses.
Network Operations Expenses..  Account 6530
Access Expense...............  Account 6540
Depreciation and Amortization  Account 6560
 Expense.
Marketing Expense............  Account 6610
Services Expense.............  Account 6620
Corporate Operations Expense.  Account 6720
Operating Taxes..............  Accounts 7230, 7240
Federal Investment Tax         Account 7210
 Credits.
Provision for Deferred         Account 7250
 Operating Income Taxes-Net.
Allowance for Funds Used       Included in Account 7300
 During Construction.
Charitable Contributions.....  Included in Account 7300
Interest and Related Items...  Account 7500
                                   IV
Other Non-Current Assets.....  Included in Account 1410
Deferred Maintenance and       Included in Account 1438
 Retirements.
Deferred Charges.............  Included in Account 1438
Other Jurisdictional Assets    Accounts 1500, 4370
 and Liabilities.
Customers' Deposits..........  Account 4040
Other Long-Term Liabilities..  Included in Account 4300
 

    (c) * * *
    (2) Telecommunications Plant--Other (Accounts 2002, 2003, 2005); 
Rural Telephone Bank (RTB) Stock (included in Account 1410); Materials 
and Supplies (Account 1220.1); Cash Working Capital (Sec. 65.820(d) of 
this chapter); Accumulated Amortization (Included in Accounts 2005, 
2680, 2690, 3410); Net Deferred Operating Income Taxes (Accounts 4100, 
4340); Network Support Expenses (Account 6110); Other Property, Plant 
and Equipment Expenses (Account 6510); Network Operations Expenses 
(Account 6530); Marketing Expense (Account 6610); Services Expense 
(Account 6620); Operating Taxes (Accounts 7230, 7240); Federal 
Investment Tax Credits (Accounts 7210); Provision for Deferred Operating 
Income Taxes--Net (Account 7250); Interest and Related Items (Account 
7500); Allowance for Funds Used During Construction (Included in Account 
7300); Charitable Contributions (included in Account 7300); Other Non-
current Assets (Included in Account 1410); Other Jurisdictional Assets 
and Liabilities (Accounts 1500, 4370); Customer Deposits (Account 4040); 
Other Long-term Liabilities (Included in Account 4300); and Deferred 
Maintenance and Retirements (Included in Account 1438) shall be 
allocated according to the following factor:
    Account 2210 Category 3 Account 2001.

                                * * * * *

    (5) Corporate Operations Expenses (Account 6720) shall be allocated 
according to the following factor:
    [[Account 2210 Category 3 (Account 2210 + Account 2220 + Account 
2230)]] x (Account 6210 + Account 6220 + Account 6230)] + [(Account 6530 
+ Account 6610 + Account 6620) x (Account 2210 Category 3 Account 2001)] 
(Account 6210 + Account 6220 + Account 6230 + Account 6310 + Account 
6410 + Account 6530 + Account 6610 + Account 6620).

                                * * * * *

    (d) * * *
    (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:

[[Page 105]]

    [Return on Investment attributable to COE Category 3--Included in 
Account 7300--Account 7500-Account 7210)] x [Federal Income Tax Rate (1-
-Federal Income Tax Rate)].

                                * * * * *



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).
    (5)(i) Beginning July 1, 2002, each carrier will be eligible to 
receive LTS equal to the lesser of:
    (A) The LTS for which the carrier would be eligible pursuant to 
paragraph (b)(4) of this section, or
    (B) Its common line revenue requirement as calculated in accordance 
with part 69 of this chapter, minus:
    (1) The study area revenues obtained from end-user common line 
charges at their allowable maximum as determined by Secs. 69.104(n) and 
69.104(o) of this chapter;
    (2) The carrier common line charge revenues to be phased out 
pursuant to Sec. 69.105 of this chapter;
    (3) The special access surcharges pursuant to Sec. 69.114 of this 
chapter; and
    (4) The line port costs in excess of basic analog service pursuant 
to Sec. 69.130 of this chapter.
    (ii) Under no circumstance shall a carrier have LTS that is less 
than zero.
    (iii) In calculating an LTS amount pursuant to paragraph 
(b)(5)(i)(B) of this section, the Administrator shall use data filed 
pursuant to Sec. 54.903 of this chapter.

[63 FR 2128, Jan. 13, 1998; 63 FR 33586, June 19, 1998, as amended at 67 
FR 42506, June 24, 2002]



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 106]]

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 107]]

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. A competitive eligible 
telecommunications carrier serving loops in the service area of a rate-
of-return carrier shall be eligible to receive Interstate Common Line 
Support for each line it serves in the service area in accordance with 
the formula in Sec. 54.901.
    (2) A competitive eligible telecommunications carrier that uses 
switching purchased as unbundled network elements pursuant to 
Sec. 51.307 of this chapter to provide the supported services shall 
receive the lesser of the unbundled network element price for switching 
or the per-line DEM support of the incumbent LEC, if any. A competitive 
eligible telecommunications carrier that uses loops purchased as 
unbundled network elements pursuant to Sec. 51.307 of this chapter to 
provide the supported services shall receive the lesser of the unbundled 
network element price for the loop or the incumbent LEC's per-line 
payment from the high-cost loop support 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

[[Page 108]]

report to the Administrator the number of working loops it serves in a 
service area pursuant to the schedule set forth in paragraph (c) of this 
section. For a competitive eligible telecommunications carrier serving 
loops in the service area of a rural incumbent local exchange carrier, 
as that term is defined in Sec. 54.5, the carrier must report, by 
customer class, the number of working loops it serves in the service 
area, disaggregated by cost zone if disaggregation zones have been 
established within the service area pursuant to Sec. 54.315. For a 
competitive eligible telecommunications carrier serving loops in the 
service area of a non-rural telephone company, the carrier must report 
the number of working loops it serves in the service area, by customer 
class if the non-rural telephone company receives Interstate Common Line 
Support pursuant to Sec. 54.901 and by disaggregation zone if 
disaggregation zones have been established within the service area 
pursuant to Sec. 54.315 of this subpart, and the number of working loops 
it serves in each wire center in the service area. For universal service 
support purposes, working loops are defined as the number of working 
Exchange Line C&WF loops used jointly for exchange and message 
telecommunications service, including C&WF subscriber lines associated 
with pay telephones in C&WF Category 1, but excluding WATS closed end 
access and TWX service. Competitive eligible telecommunications carriers 
providing mobile wireless service in an incumbent LEC's service area 
shall use the customer's billing address for purposes of identifying the 
service location of a mobile wireless customer in a service area.
    (c) A competitive eligible telecommunications carrier must submit 
the data required pursuant to paragraph (b) of this section according to 
the schedule.
    (1) No later than July 31st of each year, submit data as of December 
31st of the previous calendar year;
    (2) No later than September 30th of each year, submit data as of 
March 31st of the existing calendar year;
    (3) No later than December 30th of each year, submit data as of June 
30th of the existing calendar year;
    (4) No later than March 30th of each year, submit data as of 
September 30th of the previous calendar year.

[62 FR 32948, June 17, 1997, as amended at 63 FR 2128, Jan. 13, 1998; 64 
FR 67431, Dec. 1, 1999; 65 FR 26516, May 8, 2000; 66 FR 30087, June 5, 
2001; 66 FR 59726, Nov. 30, 2001]



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

[[Page 109]]

statewide average FLEC per line exceeds the national cost benchmark. The 
total amount of support provided to non-rural carriers in each State 
where the statewide average FLEC per line exceeds the national cost 
benchmark shall equal 76 percent of the amount of the statewide average 
FLEC per line that exceeds the national cost benchmark, multiplied by 
the number of lines reported pursuant to Sec. 36.611, Sec. 36.612, and 
Sec. 54.307 of this chapter.
    (5) In the event that a State's statewide average FLEC per line does 
not exceed the national cost benchmark, non-rural carriers in such State 
shall be eligible for support pursuant to Sec. 54.311. In the event that 
a State's statewide average FLEC per line exceeds the national cost 
benchmark, but the amount of support otherwise provided to a non-rural 
carrier in that State pursuant to this section is less than the amount 
that would be provided pursuant to Sec. 54.311, the carrier shall be 
eligible for support pursuant to Sec. 54.311.
    (b) Distribution of total support available per state. The total 
amount of support available per State calculated pursuant to paragraph 
(a) of this section shall be distributed to non-rural incumbent local 
exchange carriers, and eligible telecommunications carriers serving 
lines in the service areas of non-rural incumbent local exchange 
carriers, in the following manner:
    (1) The Commission's cost model shall determine the percentage of 
the total amount of support available in the State for each wire center 
by calculating the ratio of the wire center's FLEC above the national 
cost benchmark to the total FLEC above the national cost benchmark of 
all wire centers within the State. A wire center's FLEC above the 
national cost benchmark shall be equal to the wire center's average FLEC 
per line above the national cost benchmark, multiplied by the number of 
switched lines in the wire center used in the Commission's cost model;
    (2) The total amount of support distributed to each wire center 
shall be equal to the percentage calculated for the wire center pursuant 
to paragraph (b)(1) of this section multiplied by the total amount of 
support available in the state;
    (3) The total amount of support for each wire center pursuant to 
paragraph (b)(2) of this section shall be divided by the number of lines 
in the wire center reported pursuant to Sec. 36.611, Sec. 36.612, and 
Sec. 54.307 of this chapter to determine the per-line amount of forward-
looking support for that wire center;
    (4) The per-line amount of support for each wire center pursuant to 
paragraph (b)(3) of this section shall be multiplied by the number of 
lines served by a non-rural incumbent local exchange carrier in that 
wire center, or by an eligible telecommunications carrier in that wire 
center, as reported pursuant to Sec. 36.611, Sec. 36.612, and 
Sec. 54.307 of this chapter, to determine the amount of forward-looking 
support to be provided to that carrier.
    (5) The total amount of support calculated for each wire center 
pursuant to paragraph (b)(4) of this section shall be divided by the 
number of lines in the wire center to determine the per-line amount of 
forward-looking support for that wire center;
    (6) The per-line amount of support for a wire center calculated 
pursuant to paragraph (b)(5) of the section shall be multiplied by the 
number of lines served by a non-rural incumbent local exchange carrier 
in that wire center, or by an eligible telecommunications carrier in 
that wire center, to determine the amount of forward-looking support to 
be provided to that carrier.
    (c) Petition for waiver. Pursuant to section 1.3 of this chapter, 
any State may file a petition for waiver of paragraph (b) of this 
section, asking the Commission to distribute support calculated pursuant 
to paragraph (a) of this section to a geographic area different than the 
wire center. Such petition must contain a description of the particular 
geographic level to which the State desires support to be distributed, 
and an explanation of how waiver of paragraph (b) of this section will 
further the preservation and advancement of universal service within the 
State.

[64 FR 67431, Dec. 1, 1999, as amended at 65 FR 26516, May 8, 2000]

[[Page 110]]



Sec. 54.311  Interim hold-harmless support for non-rural carriers.

    (a) Interim hold-harmless support. The total amount of interim hold-
harmless support provided to a non-rural incumbent local exchange 
carrier shall equal the amount of support calculated for that carrier 
pursuant to part 36 of this chapter. The total amount of interim hold-
harmless support provided to a non-rural incumbent local exchange 
carrier shall also include Long Term Support provided pursuant to 
Sec. 54.303, to the extent that the carrier would otherwise be eligible 
for such support. Beginning on January 1, 2000, in the event that a 
State's statewide average FLEC per line, calculated pursuant to 
Sec. 54.309(a), does not exceed the national cost benchmark, non-rural 
incumbent local exchange carriers in such State shall receive interim 
hold-harmless support calculated pursuant to part 36, and, if 
applicable, Sec. 54.303. In the event that a State's statewide average 
FLEC per line, calculated pursuant to Sec. 54.309(a), exceeds the 
national cost benchmark, but the amount of support that would be 
provided to a non-rural incumbent local exchange carrier in such State 
pursuant to Sec. 54.309(b) is less than the amount that would be 
provided pursuant to part 36 and, if applicable, Sec. 54.303, the 
carrier shall be eligible for support pursuant to part 36 and, if 
applicable, Sec. 54.303. To the extent that an eligible 
telecommunications carrier serves lines in the service area of a non-
rural incumbent local exchange carrier receiving interim hold-harmless 
support, the eligible telecommunications carrier shall also be entitled 
to interim hold-harmless support in an amount per line equal to the 
amount per line provided to the non-rural incumbent local exchange 
carrier pursuant to paragraph (b) of this section.
    (b) Distribution of Interim Hold-Harmless Support Amounts. Until the 
third quarter of 2000, interim hold-harmless support shall be 
distributed pursuant to part 36 and, if applicable, Sec. 54.303 of this 
subpart. Beginning in the third quarter of 2000, the total amount of 
interim hold-harmless support provided to each non-rural incumbent local 
exchange carrier within a particular State pursuant to paragraph (a) 
shall be distributed first to the carrier's wire center with the highest 
wire center average FLEC per line until that wire center's average FLEC 
per line, net of support, equals the average FLEC per line in the second 
most high-cost wire center. Support shall then be distributed to the 
carrier's wire center with the highest and second highest wire center 
average FLEC per line until those wire center's average FLECs per line, 
net of support, equal the average FLEC per line in the third most high-
cost wire center. This process shall continue in a cascading fashion 
until all of the interim hold-harmless support provided to the carrier 
has been exhausted.
    (c) Petition for waiver. Pursuant to section 1.3 of this chapter, a 
State may file a petition for waiver of paragraph (b) of this section, 
asking the Commission to distribute interim hold-harmless support to a 
geographic area different than the wire center. Such petition must 
contain a description of the particular geographic level to which the 
State desires interim hold-harmless support to be distributed, and an 
explanation of how waiver of paragraph (b) of this section will further 
the preservation and advancement of universal service within the State.
    (d) Phase down of interim hold-harmless support. Beginning January 
1, 2001, the interim hold-harmless support for which a non-rural 
incumbent local exchange carrier qualifies under paragraph (a) of this 
section, excluding Long Term Support, shall be phased down through 
annual $1.00 reductions in average monthly, per-line support. Applicable 
annual reductions shall be subtracted from the total amount of interim 
hold-harmless support that a non-rural incumbent local exchange carrier 
otherwise would be eligible to receive on an ongoing, quarterly basis. 
The provisions of paragraph (b) of this section shall apply to the total 
amount of phased-down interim hold-harmless support provided to each 
non-rural incumbent local exchange carrier.
    (1) Interim hold-harmless support for a wire center transferred to a 
carrier that does not meet the definition of rural telephone company in 
Sec. 51.5 of this chapter shall be phased down following the transfer 
over the same time

[[Page 111]]

period as the seller's support would have been phased down, by an equal 
percentage for each year of the phase-down period.
    (2) Interim hold-harmless support for a wire center transferred to a 
carrier that meets the definition of rural telephone company in 
Sec. 51.5 of this chapter shall remain frozen at the per-line support 
level as of the sale date.

[64 FR 67432, Dec. 1, 1999, as amended at 64 FR 73428, Dec. 30, 1999; 65 
FR 78992, Dec. 18, 2000]



Sec. 54.313  State certification of support for non-rural carriers.

    (a) Certification. States that desire non-rural incumbent local 
exchange carriers and/or eligible telecommunications carriers serving 
lines in the service area of a non-rural incumbent local exchange 
carrier within their jurisdiction to receive support pursuant to 
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

[[Page 112]]

(c) of this section, 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 Sec. 54.311. 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 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 section 54.311 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 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 in 2000.
    (2) Second program year (January 1, 2001-December 31, 2001). During 
the second program year (January 1, 2001-December 31, 2001), a carrier 
in a particular State shall not receive support pursuant to Secs. 54.309 
or 54.311 until such time as the State files the certification described 
in this section. Upon the filing of the certification described in this 
section, support shall be provided pursuant to the following schedule:
    (i) Certifications filed on or before October 1, 2000. Carriers 
subject to certifications filed on or before October 1, 2000 shall 
receive support pursuant to Secs. 54.309 or 54.311, whichever is 
applicable, in the first, second, third, and fourth quarters of 2001.
    (ii) Certifications filed on or before January 1, 2001. Carriers 
subject to certifications filed on or before January 1, 2001 shall 
receive support pursuant to Secs. 54.309 or 54.311, whichever is 
applicable, in the second, third, and fourth quarters of 2001. Such 
carriers shall not receive support pursuant to Secs. 54.309 or 54.311, 
whichever is applicable, in the first quarter of 2001.
    (iii) Certifications filed on or before April 1, 2001. Carriers 
subject to certifications filed on or before April 1, 2001 shall receive 
support pursuant to Secs. 54.309 or 54.311, whichever is applicable, in 
the third and fourth quarters of 2001. Such carriers shall not receive 
support pursuant to Secs. 54.309 or 54.311, whichever is applicable, in 
the first or second quarters of 2001.
    (iv) Certifications filed on or before July 1, 2001. Carriers 
subject to certifications filed on or before July 1, 2001 shall receive 
support pursuant to Secs. 54.309 or 54.311, whichever is applicable, in 
the fourth quarter of 2001. Such carriers shall not receive support 
pursuant to Secs. 54.309 or 54.311, whichever is applicable, in the 
first, second, or third quarters of 2001.
    (v) Certifications filed after July 1, 2001. Carriers subject to 
certifications filed after July 1, 2001 shall not receive support 
pursuant to Secs. 54.309 or 54.311, whichever is applicable, in 2001.
    (3) Subsequent program years (January 1-December 31). During the 
program years subsequent to the second program year (January 1, 2001-
December 31, 2001), a carrier in a particular State shall not receive 
support pursuant to Sec. 54.309 or Sec. 54.311 until such time as the 
State files the certification described in this section. Upon the filing 
of the certification described in this section, support shall be 
provided pursuant to the following schedule:
    (i) Certifications filed on or before October 1. Carriers subject to 
certifications filed on or before October 1 shall receive support 
pursuant to Sec. 54.309 or Sec. 54.311, whichever is applicable, in the 
first, second, third, and fourth quarters of the succeeding year.
    (ii) Certifications filed on or before January 1. Carriers subject 
to certifications filed on or before January 1 shall receive support 
pursuant to Sec. 54.309 or Sec. 54.311, whichever is applicable, in the 
second, third, and fourth quarters of that year. Such carriers shall not 
receive support pursuant to

[[Page 113]]

Sec. 54.309 or Sec. 54.311, whichever is applicable, in the first 
quarter of that year.
    (iii) Certifications filed on or before April 1. Carriers subject to 
certifications filed on or before April 1 shall receive support pursuant 
to Sec. 54.309 or Sec. 54.311, whichever is applicable, in the third and 
fourth quarters of that year. Such carriers shall not receive support 
pursuant to Sec. 54.309 or Sec. 54.311, whichever is applicable, in the 
first or second quarters of that year.
    (iv) Certifications filed on or before July 1. Carriers subject to 
certifications filed on or before July 1 shall receive support pursuant 
to Sec. 54.309 or Sec. 54.311, whichever is applicable, beginning in the 
fourth quarter of that year. Such carriers shall not receive support 
pursuant to Sec. 54.309 or Sec. 54.311, whichever is applicable, in the 
first, second, or third quarters of that year.
    (v) Certifications filed after July 1. Carriers subject to 
certifications filed after July 1 shall not receive support pursuant to 
Sec. 54.309 or Sec. 54.311, whichever is applicable, in that year.

[64 FR 67432, Dec. 1, 1999, as amended at 64 FR 73428, Dec. 30, 1999; 66 
FR 30088, June 5, 2001; 67 FR 13094, Mar. 21, 2002]



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 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

[[Page 114]]

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 high-cost support.

    (a) On or before May 15, 2002, all rural incumbent local exchange 
carriers and rate-of-return carriers for which high-cost universal 
service support pursuant to Secs. 54.301, 54.303, and/or 54.305 of this 
subpart, subpart K of this part, and/or part 36 subpart F is available 
must select a disaggregation path as described in paragraphs (b), (c), 
or (d) of this section. In study areas in which a competitive carrier 
was designated as a competitive eligible telecommunications carrier 
prior to June 19, 2001, the rural incumbent local exchange carrier or 
rate-of-return carrier may only disaggregate support pursuant to 
paragraphs (b), (c), or (d)(1)(iii) of this section. A rural incumbent 
local exchange carrier or rate-of-return carrier failing to select a 
disaggregation path as described in paragraphs (b), (c), or (d) of this 
section by May 15, 2002, will not be permitted to disaggregate and 
target federal high-cost support unless ordered to do so by a state 
commission as that term is defined in Sec. 54.5.
    (b) Path 1: Carriers Not Disaggregating and Targeting High-Cost 
Support:
    (1) A carrier may certify to the state commission that it will not 
disaggregate and target high-cost universal service support.
    (2) A carrier's election of this path becomes effective upon 
certification by the carrier to the state commission.
    (3) This path shall remain in place for such carrier for at least 
four years from the date of certification to the state commission except 
as provided in paragraph (b)(4) of this section.
    (4) A state commission may require, on its own motion, upon petition 
by an interested party, or upon petition by the rural incumbent local 
exchange carrier or rate-of-return carrier, the disaggregation and 
targeting of support under paragraphs (c) or (d) of this section.
    (5) A carrier not subject to the jurisdiction of a state, e.g., 
certain tribally

[[Page 115]]

owned carriers, may select Path 1, but must certify to the Federal 
Communications Commission as described in paragraphs (1) through (4) of 
this section.
    (c) Path 2: Carriers Seeking Prior Regulatory Approval for the 
Disaggregation and Targeting of Support:
    (1) A carrier electing to disaggregate and target support under this 
paragraph must file a disaggregation and targeting plan with the state 
commission.
    (2) Under this paragraph a carrier may propose any method of 
disaggregation and targeting of support consistent with the general 
requirements detailed in paragraph (e) of this section.
    (3) A disaggregation and targeting plan under this paragraph becomes 
effective upon approval by the state commission.
    (4) A carrier shall disaggregate and target support under this path 
for at least four years from the date of approval by the state 
commission except as provided in paragraph (c)(5) of this section.
    (5) A state commission may require, on its own motion, upon petition 
by an interested party, or upon petition by the rural incumbent local 
exchange carrier or rate-of-return carrier, the disaggregation and 
targeting of support in a different manner.
    (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 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

[[Page 116]]

must certify to the Federal Communications Commission as described in 
paragraphs (d)(1) through (5) of this section.
    (e) Additional Procedures Governing the Operation of Path 2 and Path 
3: Disaggregation and targeting plan adopted under paragraphs (c) or (d) 
of this section shall be subject to the following general requirements:
    (1) Support available to the carrier's study area under its 
disaggregation plan shall equal the total support available to the study 
area without disaggregation.
    (2) The ratio of per-line support between disaggregation zones for 
each disaggregated category of support shall remain fixed over time, 
except as changes are allowed pursuant to paragraph (c) and (d) of this 
section.
    (3) The ratio of per-line support shall be publicly available.
    (4) Per-line support amounts for each disaggregation zone shall be 
recalculated whenever the carrier's total annual support amount changes 
using the changed support amount and lines at that point in time.
    (5) Per-line support for each category of support in each 
disaggregation zone shall be determined such that the ratio of support 
between disaggregation zones is maintained and that the product of all 
of the carrier's lines for each disaggregation zone multiplied by the 
per-line support for those zones when added together equals the sum of 
the carrier's total support.
    (6) Until a competitive eligible telecommunications carrier is 
certified in a study area, monthly payments to the incumbent carrier 
will be made based on total annual amounts for its study area divided by 
12.
    (7) When a competitive eligible telecommunications carrier is 
certified in a study area, per-line amounts used to determine the 
competitive eligible telecommunications carrier's disaggregated support 
shall be based on the incumbent carrier's then-current total support 
levels, lines, disaggregated support relationships, and, in the case of 
support calculated under subpart K of this part, customer classes.
    (f) Submission of Information to the Administrator:
    (1) A carrier certifying under paragraph (b) of this section that it 
will not disaggregate and target high-cost universal service support 
shall submit to the Administrator a copy of the certification submitted 
to the state commission, or the Federal Communications Commission, when 
not subject to state jurisdiction.
    (2) A carrier electing to disaggregate and target support under 
paragraph (c) of this section shall submit to the Administrator a copy 
of the order approving the disaggregation and targeting plan submitted 
by the carrier to the state commission, or the Federal Communications 
Commission, when not subject to state jurisdiction, and a copy of the 
disaggregation and targeting plan approved by the state commission or 
the Federal Communications Commission.
    (3) A carrier electing to disaggregate and target support under 
paragraph (d) of this section shall submit to the Administrator a copy 
of the self-certification plan including the information submitted to 
the state commission pursuant to paragraphs (d)(2)(i) and (d)(2)(iv) of 
this section or the Federal Communications Commission.
    (4) A carrier electing to disaggregate and target support under 
paragraph (c) or (d) of this section must submit to the Administrator 
maps which precisely identify the boundaries of the designated 
disaggregation zones of support within the carrier's study area.

[66 FR 30089, June 5, 2001, as amended at 66 FR 59727, Nov. 30, 2001]



      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.

[[Page 117]]

    (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 
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

[[Page 118]]

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.
    (c) Lifeline support for providing toll limitation shall equal the 
eligible telecommunications carrier's incremental cost of providing 
either toll blocking or toll control, whichever is selected by the 
particular consumer.

[62 FR 32948, June 17, 1997, as amended at 63 FR 2128, Jan. 13, 1998; 65 
FR 38689, June 21, 2000; 65 FR 47905, Aug. 4, 2000]



Sec. 54.405  Carrier obligation to offer Lifeline.

    All eligible telecommunications carriers shall:
    (a) Make available Lifeline service, as defined in Sec. 54.401, to 
qualifying low-income consumers, and
    (b) Publicize the availability of Lifeline service in a manner 
reasonably designed to reach those likely to qualify for the service.

[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 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

[[Page 119]]

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 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

[[Page 120]]

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 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.

[[Page 121]]

    (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 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

[[Page 122]]

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 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

[[Page 123]]

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 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,

[[Page 124]]

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 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

[[Page 125]]

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 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

[[Page 126]]

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 funding cap on federal 
universal service support for schools and libraries shall be $2.25 
billion per funding year. All funding authority for a given funding year 
that is unused in that funding year shall be carried forward into 
subsequent funding years for use in accordance with demand. All funds 
collected that are unused shall be applied to stabilize universal 
service contributions in accordance with the public interest and 
consistent with Sec. 54.709(b) for no more than three quarters, 
beginning with third quarter 2002. Beginning no later than second 
quarter 2003, all funds collected that are unused shall be carried 
forward into subsequent funding years for use in the schools and 
libraries support mechanism in accordance with the public interest and 
notwithstanding the annual cap.
    (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.
    (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;

[[Page 127]]

    (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)(l)(iii): To the extent that there are single 
discount percentage levels associated with ``shared services'' under 
Sec. 54.505(b)(4), the Administrator shall allocate funds for internal 
connections beginning at the ninety percent discount level, then for the 
eighty-nine percent discount, then for the eighty-eight percent 
discount, and shall continue committing funds for internal connections 
in the same manner to the applicants at each descending discount level 
until there are no funds remaining.

    (iv) If the remaining funds are not sufficient to support all of the 
funding requests within a particular discount level, Schools and 
Libraries Corporation shall divide the total amount of remaining support 
available by the amount of support requested within the particular 
discount level to produce a pro-rata factor. Schools and Libraries 
Corporation shall reduce the support level for each applicant within the 
particular discount level, by multiplying each applicant's requested 
amount of support by the pro-rata factor.
    (v) Schools and Libraries Corporation shall commit funds to all 
applicants consistent with the calculations described herein.
    (2) Rules of priority. When expenditures in any funding year reach 
the level where only $250 million remains before the cap will be 
reached, funds

[[Page 128]]

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; 67 FR 
41866, June 20, 2002]



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.
    (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

[[Page 129]]

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 
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

[[Page 130]]

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]



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;

[[Page 131]]

    (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.
    (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,

[[Page 132]]

    (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 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

[[Page 133]]

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 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

[[Page 134]]

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.
    Note to Sec. 54.520: Enforcement of paragraphs (c)(2)(i) and (iii), 
(c)(3), (d), and (g)(1), as they apply to all libraries and to the 
extent that they require any library to filter or to certify to such 
filtering under 47 U.S.C. 254(h)(6), is suspended as of August 5, 2002.

[66 FR 19396, Apr. 16, 2001; 66 FR 22133, May 3, 2001, as amended at 67 
FR 50603, Aug. 5, 2002]



     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.
    (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.

[[Page 135]]

    (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 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

[[Page 136]]

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 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

[[Page 137]]

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.
    (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

[[Page 138]]

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.
    (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

[[Page 139]]

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;
    (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.

[[Page 140]]

    (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 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.

[[Page 141]]

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 
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.

[[Page 142]]

    (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, the interstate access universal service support 
mechanism for price cap carriers described in subpart J of this part, 
and the interstate common line support mechanism for rate-of-return 
carriers described in subpart K of this part, under the direction of the 
High Cost and Low Income Committee of the Board, as set forth in 
Sec. 54.705(c).
    (2) As directed by the Committees of the Board set forth in 
Sec. 54.705, these divisions shall perform the duties and functions 
unique to their respective support mechanisms.
    (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; 66 FR 59727, Nov. 30, 2001]



Sec. 54.702  Administrator's functions and responsibilities.

    (a) The Administrator, and the divisions therein, shall be 
responsible for administering the schools and libraries support 
mechanism, the rural health care support mechanism, the high cost 
support mechanism, the low income support mechanism, the interstate 
access universal service support mechanism described in subpart J of 
this part, and the interstate common line support mechanism described in 
subpart K of this part.
    (b ) The Administrator shall be responsible for billing 
contributors, collecting contributions to the universal service support 
mechanisms, and disbursing universal service support funds.
    (c) The Administrator may not make policy, interpret unclear 
provisions of the statute or rules, or interpret the intent of Congress. 
Where the Act or the Commission's rules are unclear, or do not address a 
particular situation, the Administrator shall seek guidance from the 
Commission.
    (d) The Administrator may advocate positions before the Commission 
and its staff only on administrative matters relating to the universal 
service support mechanisms.
    (e) The Administrator shall maintain books of account separate from 
those of the National Exchange Carrier Association, of which the 
Administrator is an independent subsidiary. The Administrator's books of 
account shall be

[[Page 143]]

maintained in accordance with generally accepted accounting principles. 
The Administrator may borrow start up funds from the National Exchange 
Carrier Association. Such funds may not be drawn from the 
Telecommunications Relay Services (TRS) fund or TRS administrative 
expense accounts.
    (f) The Administrator shall create and maintain a website, as 
defined in Sec. 54.5, on which applications for services will be posted 
on behalf of schools, libraries and rural health care providers.
    (g) The Administrator shall file with the Commission and Congress an 
annual report by March 31 of each year. The report shall detail the 
Administrator's operations, activities, and accomplishments for the 
prior year, including information about participation in each of the 
universal service support mechanisms and administrative action intended 
to prevent waste, fraud, and abuse. The report also shall include an 
assessment of subcontractors' performance, and an itemization of monthly 
administrative costs that shall include all expenses, receipts, and 
payments associated with the administration of the universal service 
support programs. The Administrator shall consult each year with 
Commission staff to determine the scope and content of the annual 
report.
    (h) The Administrator shall report quarterly to the Commission on 
the disbursement of universal service support program funds. The 
Administrator shall keep separate accounts for the amounts of money 
collected and disbursed for eligible schools and libraries, rural health 
care providers, low-income consumers, interstate access universal 
service support, interstate common line support, and high-cost and 
insular areas.
    (i) Information based on the Administrator's reports will be made 
public by the Commission at least once a year as part of a Monitoring 
Report.
    (j) The Administrator shall provide the Commission full access to 
the data collected pursuant to the administration of the universal 
service support programs.
    (k) Pursuant to Sec. 64.903 of this chapter, the Administrator shall 
file with the Commission a cost allocation manual (CAM) that describes 
the accounts and procedures the Administrator will use to allocate the 
shared costs of administering the universal service support mechanisms 
and its other operations.
    (l) The Administrator shall make available to whomever the 
Commission directs, free of charge, any and all intellectual property, 
including, but not limited to, all records and information generated by 
or resulting from its role in administering the support mechanisms, if 
its participation in administering the universal service support 
mechanisms ends.
    (m) If its participation in administering the universal service 
support mechanisms ends, the Administrator shall be subject to close-out 
audits at the end of its term.

[63 FR 70573, Dec. 21, 1998, as amended at 65 FR 38690, June 21, 2000; 
65 FR 57739, Sept. 26, 2000; 66 FR 59727, Nov. 30, 2001; 67 FR 11259, 
Mar. 13, 2002]



Sec. 54.703  The Administrator's Board of Directors.

    (a) The Administrator shall have a Board of Directors separate from 
the Board of Directors of the National Exchange Carrier Association. The 
National Exchange Carrier Association's Board of Directors shall be 
prohibited from participating in the functions of the Administrator.
    (b) Board composition. The independent subsidiary's Board of 
Directors shall consist of nineteen (19) directors:
    (1) Three directors shall represent incumbent local exchange 
carriers, with one director representing the Bell Operating Companies 
and GTE, one director representing ILECs (other than the Bell Operating 
Companies) with annual operating revenues in excess of $40 million, and 
one director representing ILECs (other than the Bell Operating 
Companies) with annual operating revenues of $40 million or less;
    (2) Two directors shall represent interexchange carriers, with one 
director representing interexchange carriers with more than $3 billion 
in annual operating revenues and one director representing interexchange 
carriers with annual operating revenues of $3 billion or less;

[[Page 144]]

    (3) One director shall represent commercial mobile radio service 
(CMRS) providers;
    (4) One director shall represent competitive local exchange 
carriers;
    (5) One director shall represent cable operators;
    (6) One director shall represent information service providers;
    (7) Three directors shall represent schools that are eligible to 
receive discounts pursuant to Sec. 54.501;
    (8) One director shall represent libraries that are eligible to 
receive discounts pursuant to Sec. 54.501;
    (9) Two directors shall represent rural health care providers that 
are eligible to receive supported services pursuant to Sec. 54.601;
    (10) One director shall represent low-income consumers;
    (11) One director shall represent state telecommunications 
regulators;
    (12) One director shall represent state consumer advocates; and
    (13) The Chief Executive Officer of the Administrator.
    (c) Selection process for board of directors. (1) Sixty (60) days 
prior to the expiration of a director's term, the industry or non-
industry group that is represented by such director on the 
Administrator's Board of Directors, as specified in paragraph (b) of 
this section, shall nominate by consensus a new director. The industry 
or non-industry group shall submit the name of its nominee for a seat on 
the Administrator's Board of Directors, along with relevant professional 
and biographical information about the nominee, to the Chairman of the 
Federal Communications Commission. Only members of the industry or non-
industry group that a Board member will represent may submit a 
nomination for that position.
    (2) The name of an industry or non-industry group's nominee shall be 
filed with the Office of the Secretary of the Federal Communications 
Commission in accordance with part 1 of this chapter. The document 
nominating a candidate shall be captioned ``In the matter of: Nomination 
for Universal Service Administrator's Board of Directors'' and shall 
reference FCC Docket Nos. 97-21 and 96-45. Each nomination shall specify 
the position on the Board of Directors for which such nomination is 
submitted. Two copies of the document nominating a candidate shall be 
submitted to the Wireline Competition Bureau's Telecommunications Access 
Policy Division.
    (3) The Chairman of the Federal Communications Commission shall 
review the nominations submitted by industry and non-industry groups and 
select each director of the Administrator's Board of Directors, as each 
director's term expires pursuant to paragraph (d) of this section. If an 
industry or non-industry group does not reach consensus on a nominee or 
fails to submit a nomination for a position on the Administrator's Board 
of Directors, the Chairman of the Federal Communications Commission 
shall select an individual to represent such group on the 
Administrator's Board of Directors.
    (d) Board member terms. The directors of the Administrator's Board 
shall be appointed for three-year terms, except that the Chief Executive 
Officer shall be a permanent member of the Board. Board member terms 
shall run from January 1 of the first year of the term to December 31 of 
the third year of the term, except that, for purposes of the term 
beginning on January 1, 1999, the terms of the six directors shall 
expire on December 31, 2000, the terms of another six directors on 
December 31, 2001, and the terms of the remaining six directors on 
December 31, 2002. Directors may be reappointed for subsequent terms 
pursuant to the initial nomination and appointment process described in 
paragraph (c) of this section. If a Board member vacates his or her seat 
prior to the completion of his or her term, the Administrator will 
notify the Wireline Competition Bureau of such vacancy, and a successor 
will be chosen pursuant to the nomination and appointment process 
described in paragraph (c) of this section.
    (e) All meetings of the Administrator's Board of Directors shall be 
open to the public and held in Washington, D.C.
    (f) Each member of the Administrator's Board of Directors shall be 
entitled to receive reimbursement for expenses directly incurred as a 
result of

[[Page 145]]

his or her participation on the Administrator's Board of Directors.

[63 FR 70573, Dec. 21, 1998, as amended at 67 FR 13226, Mar. 21, 2002]

    Effective Date Note: At 63 FR 70573, Dec. 21, 1998, Sec. 54.703 was 
revised. Paragraph (c) contains modified information collection 
requirements and will not become effective until approved by the Office 
of Management and Budget.



Sec. 54.704  The Administrator's Chief Executive Officer.

    (a) Chief Executive Officer's functions. (1) The Chief Executive 
Officer shall have management responsibility for the administration of 
the federal universal service support mechanisms.
    (2) The Chief Executive Officer shall have management responsibility 
for all employees of the Universal Service Administrative Company. The 
Chief Executive Officer may delegate such responsibility to heads of the 
divisions established in Sec. 54.701(g).
    (3) The Chief Executive Officer shall serve on the Administrator's 
Board of Directors as set forth in Sec. 54.703(b) and on the Committees 
of the Board established under Sec. 54.705.
    (b) Selection process for the Chief Executive Officer. (1) The 
members of the Board of Directors of the Administrator shall nominate by 
consensus a Chief Executive Officer. The Board of Directors shall submit 
the name of its nominee for Chief Executive Officer, along with relevant 
professional and biographical information about the nominee, to the 
Chairman of the Federal Communications Commission.
    (2) The Chairman of the Federal Communications Commission shall 
review the nomination submitted by the Administrator's Board of 
Directors. Subject to the Chairman's approval, the nominee shall be 
appointed as the Administrator's Chief Executive Officer.
    (3) If the Board of Directors does not reach consensus on a nominee 
or fails to submit a nomination for the Chief Executive Officer, the 
Chairman of the Federal Communications Commission shall select a Chief 
Executive Officer.

[63 FR 70574, Dec. 21, 1998]



Sec. 54.705  Committees of the Administrator's Board of Directors.

    (a) Schools and Libraries Committee.--(1) Committee functions. The 
Schools and Libraries Committee shall oversee the administration of the 
schools and libraries support mechanism by the Schools and Libraries 
Division. The Schools and Libraries Committee shall have the authority 
to make decisions concerning:
    (i) How the Administrator projects demand for the schools and 
libraries support mechanism;
    (ii) Development of applications and associated instructions as 
needed for the schools and libraries support mechanism;
    (iii) Administration of the application process, including 
activities to ensure compliance with Federal Communications Commission 
rules and regulations;
    (iv) Performance of outreach and education functions;
    (v) Review of bills for services that are submitted by schools and 
libraries;
    (vi) Monitoring demand for the purpose of determining when the $2 
billion trigger has been reached;
    (vii) Implementation of the rules of priority in accordance with 
Sec. 54.507(g) of this chapter;
    (viii) Review and certification of technology plans when a state 
agency has indicated that it will not be able to review such plans 
within a reasonable time;
    (ix) The classification of schools and libraries as urban or rural 
and the use of the discount matrix established in Sec. 54.505(c) of this 
chapter to set the discount rate to be applied to services purchased by 
eligible schools and libraries;
    (x) Performance of audits of beneficiaries under the schools and 
libraries support mechanism; and
    (xi) Development and implementation of other functions unique to the 
schools and libraries support mechanism.
    (2) Committee composition. The Schools and Libraries Committee shall 
consist of the following members of the Administrator's Board of 
Directors:
    (i) Three school representatives;
    (ii) One library representative;

[[Page 146]]

    (iii) One service provider representative;
    (iv) One at-large representative elected by the Administrator's 
Board of Directors; and
    (v) The Administrator's Chief Executive Officer.
    (b) Rural Health Care Committee.--(1) Committee functions. The Rural 
Health Care Committee shall oversee the administration of the rural 
health care support mechanism by the Rural Health Care Division. The 
Rural Health Care Committee shall have authority to make decisions 
concerning:
    (i) How the Administrator projects demand for the rural health care 
support mechanism;
    (ii) Development of applications and associated instructions as 
needed for the rural health care support mechanism;
    (iii) Administration of the application process, including 
activities to ensure compliance with Federal Communications Commission 
rules and regulations;
    (iv) Calculation of support levels under Sec. 54.609;
    (v) Performance of outreach and education functions;
    (vi) Review of bills for services that are submitted by rural health 
care providers;
    (vii) Monitoring demand for the purpose of determining when the $400 
million cap has been reached;
    (viii) Performance of audits of beneficiaries under the rural health 
care support mechanism; and
    (ix) Development and implementation of other functions unique to the 
rural health care support mechanism.
    (2) Committee composition. The Rural Health Care Committee shall 
consist of the following members of the Administrator's Board of 
Directors:
    (i) Two rural health care representatives;
    (ii) One service provider representative;
    (iii) Two at-large representatives elected by the Administrator's 
Board of Directors;
    (iv) One State telecommunications regulator, one state consumer 
advocate; and
    (v) The Administrator's Chief Executive Officer.
    (c) High Cost and Low Income Committee--(1) Committee functions. The 
High Cost and Low Income Committee shall oversee the administration of 
the high cost and low income support mechanisms, the interstate access 
universal service support mechanism for price cap carriers described in 
subpart J of this part, and the interstate common line support mechanism 
for rate-of-return carriers described in subpart K of this part by the 
High Cost and Low Income Division. The High Cost and Low Income 
Committee shall have the authority to make decisions concerning:
    (i) How the Administrator projects demand for the high cost, low 
income, interstate access universal service, and interstate common line 
support mechanisms;
    (ii) Development of applications and associated instructions as 
needed for the high cost, low income, interstate access universal 
service, and interstate common line support mechanisms;
    (iii) Administration of the application process, including 
activities to ensure compliance with Federal Communications Commission 
rules and regulations;
    (iv) Performance of audits of beneficiaries under the high cost, low 
income, interstate access universal service and interstate common line 
support mechanisms; and
    (v) Development and implementation of other functions unique to the 
high cost, low income, interstate access universal service and 
interstate common line support mechanisms.
    (d) Binding Authority of Committees of the Board.
    (1) Any action taken by the Committees of the Board established in 
paragraphs (a) through (c) of this section shall be binding on the Board 
of Directors of the Administrator, unless such action is presented for 
review to the Board by the Administrator's Chief Executive Officer and 
the Board disapproves of such action by a two-thirds vote of a quorum of 
directors, as defined in the Administrator's by-laws.
    (2) The budgets prepared by each Committee shall be subject to Board 
review as part of the Administrator's combined budget. The Board shall 
not modify the budgets prepared by the

[[Page 147]]

Committees of the Board unless such modification is approved by a two-
thirds vote of a quorum of the Board, as defined in the Administrator's 
by-laws.

[63 FR 70574, Dec. 21, 1998, as amended at 65 FR 38690, June 21, 2000; 
65 FR 57739, Sept. 26, 2000; 66 FR 59728, Nov. 30, 2001]



Sec. 54.706  Contributions.

    (a) Entities that provide interstate telecommunications to the 
public, or to such classes of users as to be effectively available to 
the public, for a fee will be considered telecommunications carriers 
providing interstate telecommunications services and must contribute to 
the universal service support programs. Interstate telecommunications 
include, but are not limited to:
    (1) Cellular telephone and paging services;
    (2) Mobile radio services;
    (3) Operator services;
    (4) Personal communications services (PCS);
    (5) Access to interexchange service;
    (6) Special access service;
    (7) WATS;
    (8) Toll-free service;
    (9) 900 service;
    (10) Message telephone service (MTS);
    (11) Private line service;
    (12) Telex;
    (13) Telegraph;
    (14) Video services;
    (15) Satellite service;
    (16) Resale of interstate services; and
    (17) Payphone services.
    (b) Except as provided in paragraph (c) of this section, every 
telecommunications carrier that provides interstate telecommunications 
services, every provider of interstate telecommunications that offers 
telecommunications for a fee on a non-common carrier basis, and every 
payphone provider that is an aggregator shall contribute to the federal 
universal service support mechanisms on the basis of its interstate and 
international end-user telecommunications revenues, net of prior period 
actual contributions.
    (c) Any entity required to contribute to the federal universal 
service support mechanisms whose interstate end-user telecommunications 
revenues comprise less than 12 percent of its combined interstate and 
international end-user telecommunications revenues shall contribute to 
the federal universal service support mechanisms for high cost areas, 
low-income consumers, schools and libraries, and rural health care 
providers based only on such entity's interstate end-user 
telecommunications revenues, net of prior period actual contributions. 
For purposes of this paragraph, an ``entity'' shall refer to the entity 
that is subject to the universal service reporting requirements in 47 
CFR 54.711 and shall include all of that entity's affiliated providers 
of telecommunications services.
    (d) Entities providing open video systems (OVS), cable leased 
access, or direct broadcast satellite (DBS) services are not required to 
contribute on the basis of revenues derived from those services. The 
following entities will not be required to contribute to universal 
service: non-profit health care providers; broadcasters; systems 
integrators that derive less than five percent of their systems 
integration revenues from the resale of telecommunications.

[63 FR 70575, Dec. 21, 1998, as amended at 64 FR 60358, Nov. 5, 1999; 67 
FR 11260, Mar. 13, 2002]



Sec. 54.707  Audit controls.

    The Administrator shall have authority to audit contributors and 
carriers reporting data to the administrator. The Administrator shall 
establish procedures to verify discounts, offsets, and support amounts 
provided by the universal service support programs, and may suspend or 
delay discounts, offsets, and support amounts provided to a carrier if 
the carrier fails to provide adequate verification of discounts, 
offsets, or support amounts provided upon reasonable request, or if 
directed by the Commission to do so. The Administrator shall not provide 
reimbursements, offsets or support amounts pursuant to part 36 and 
Sec. 69.116 through 69.117 of this chapter, and subparts D, E, and G of 
this part to a carrier until the carrier has provided to the 
Administrator a true and correct copy of the decision of a state 
commission designating that carrier as an eligible telecommunications 
carrier in accordance with Sec. 54.201.

[[Page 148]]



Sec. 54.708  De minimis exemption.

    If a contributor's contribution to universal service in any given 
year is less than $10,000 that contributor will not be required to 
submit a contribution or Telecommunications Reporting Worksheet for that 
year unless it is required to do so to by our rules governing 
Telecommunications Relay Service (47 CFR 64.601 et seq. of this 
chapter), numbering administration (47 CFR 52.1 et seq. of this 
chapter), or shared costs of local number portability (47 CFR 52.21 et 
seq. of this chapter). If a contributor improperly claims exemption from 
the contribution requirement, it will subject to the criminal provisions 
of sections 220(d) and (e) of the Act regarding willful false 
submissions and will be required to pay the amounts withheld plus 
interest.

[64 FR 41331, July 30, 1999]



Sec. 54.709  Computations of required contributions to universal service support mechanisms.

    (a) Contributions to the universal service support mechanisms shall 
be based on contributors' end-user telecommunications revenues and a 
contribution factor determined quarterly by the Commission.
    (1) For funding the federal universal service support mechanisms, 
the subject revenues will be contributors' interstate and international 
revenues derived from domestic end users for telecommunications or 
telecommunications services, net of prior period actual contributions.
    (2) The quarterly universal service contribution factor shall be 
determined by the Commission based on the ratio of total projected 
quarterly expenses of the universal service support mechanisms to the 
total end-user interstate and international telecommunications revenues, 
net of prior period actual contributions. The Commission shall approve 
the Administrator's quarterly projected costs of the universal service 
support mechanisms, taking into account demand for support and 
administrative expenses. The total subject revenues shall be compiled by 
the Administrator based on information contained in the 
Telecommunications Reporting Worksheets described in Sec. 54.711(a).
    (3) Total projected expenses for the federal universal service 
support mechanisms for each quarter must be approved by the Commission 
before they are used to calculate the quarterly contribution factor and 
individual contributions. For each quarter, the Administrator must 
submit its projections of demand for the federal universal service 
support mechanisms for high-cost areas, low-income consumers, schools 
and libraries, and rural health care providers, respectively, and the 
basis for those projections, to the Commission and the Wireline 
Competition Bureau at least sixty (60) calendar days prior to the start 
of that quarter. For each quarter, the Administrator must submit its 
projections of administrative expenses for the high-cost mechanism, the 
low-income mechanism, the schools and libraries mechanism and the rural 
health care mechanism and the basis for those projections to the 
Commission and the Wireline Competition Bureau at least sixty (60) 
calendar days prior to the start of that quarter. Based on data 
submitted to the Administrator on the Telecommunications Reporting 
Worksheets, the Administrator must submit the total contribution base to 
the Wireline Competition Bureau at least sixty (60) days before the 
start of each quarter. The projections of demand and administrative 
expenses and the contribution factor shall be announced by the 
Commission in a public notice and shall be made available on the 
Commission's website. The Commission reserves the right to set 
projections of demand and administrative expenses at amounts that the 
Commission determines will serve the public interest at any time within 
the fourteen-day period following release of the Commission's public 
notice. If the Commission takes no action within fourteen (14) days of 
the date of release of the public notice announcing the projections of 
demand and administrative expenses, the projections of demand and 
administrative expenses, and the contribution factor shall be deemed 
approved by the Commission. Except as provided in Sec. 54.706(c), the 
Administrator shall

[[Page 149]]

apply the quarterly contribution factor, once approved by the 
Commission, to contributor's interstate and international end-user 
telecommunications revenues to calculate the amount of individual 
contributions.
    (b) If the contributions received by the Administrator in a quarter 
exceed the amount of universal service support program contributions and 
administrative costs for that quarter, the excess payments will be 
carried forward to the following quarter. The contribution factors for 
the following quarter will take into consideration the projected costs 
of the support mechanisms for that quarter and the excess contributions 
carried over from the previous quarter.
    (c) If the contributions received by the Administrator in a quarter 
are inadequate to meet the amount of universal service support program 
payments and administrative costs for that quarter, the Administrator 
shall request authority from the Commission to borrow funds 
commercially, with such debt secured by future contributions. Subsequent 
contribution factors will take into consideration the projected costs of 
the support mechanisms and the additional costs associated with 
borrowing funds.
    (d) If a contributor fails to file a Telecommunications Reporting 
Worksheet by the date on which it is due, the Administrator shall bill 
that contributor based on whatever relevant data the Administrator has 
available, including, but not limited to, the number of lines 
presubscribed to the contributor and data from previous years, taking 
into consideration any estimated changes in such data.

[62 FR 41305, Aug. 1, 1997, as amended at 62 FR 65038, Dec. 10, 1997; 63 
FR 2132, Jan. 13, 1998; 63 FR 43098, Aug. 12, 1998; 63 FR 70576, Dec. 
21, 1998; 64 FR 41331, July 30, 1999; 64 FR 60358, Nov. 5, 1999; 66 FR 
16151, Mar. 23, 2001; 67 FR 13227, Mar. 21, 2002; 67 FR 11260, Mar. 13, 
2002]



Sec. 54.711  Contributor reporting requirements.

    (a) Contributions shall be calculated and filed in accordance with 
the Telecommunications Reporting Worksheet which shall be published in 
the Federal Register. The Telecommunications Reporting Worksheet sets 
forth information that the contributor must submit to the Administrator 
on a quarterly and annual basis. The Commission shall announce by Public 
Notice published in the Federal Register and on its website the manner 
of payment and dates by which payments must be made. An officer of the 
contributor must certify to the truth and accuracy of the 
Telecommunications Reporting Worksheet, and the Commission or the 
Administrator may verify any information contained in the 
Telecommunications Reporting Worksheet at the discretion of the 
Commission. Inaccurate or untruthful information contained in the 
Telecommunications Reporting Worksheet may lead to prosecution under the 
criminal provisions of Title 18 of the United States Code. The 
Administrator shall advise the Commission of any enforcement issues that 
arise and provide any suggested response.
    (b) The Commission shall have access to all data reported to the 
Administrator. Contributors may make requests for Commission 
nondisclosure of company-specific revenue information under 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. The Administrator shall keep confidential all data 
obtained from contributors, shall not use such data except for purposes 
of administering the universal service support programs, and shall not 
disclose such data in company-specific form unless directed to do so by 
the Commission. Subject to any restrictions imposed by the Chief of the 
Wireline Competition Bureau, the Universal Service Administrator may 
share data obtained from contributors with the administrators of the 
North American Numbering Plan administration cost recovery (See 47 CFR 
52.16 of this chapter), the local number portability cost recovery (See 
47 CFR 52.32 of this chapter), and the TRS Fund (See 47 CFR 
64.604(c)(4)(iii)(H) of this chapter). The Administrator shall keep 
confidential

[[Page 150]]

all data obtained from other administrators and shall not use such data 
except for purposes of administering the universal service support 
mechanisms.
    (c) The Bureau may waive, reduce, modify, or eliminate contributor 
reporting requirements that prove unnecessary and require additional 
reporting requirements that the Bureau deems necessary to the sound and 
efficient administration of the universal service support mechanisms.

[64 FR 41332, July 30, 1999, as amended at 66 FR 16151, Mar. 23, 2001; 
67 FR 13227, Mar. 21, 2002]



Sec. 54.713  Contributors' failure to report or to contribute.

    A contributor that fails to file a Telecommunications Reporting 
Worksheet and subsequently is billed by the Administrator shall pay the 
amount for which it is billed. The Administrator may bill a contributor 
a separate assessment for reasonable costs incurred because of that 
contributor's filing of an untruthful or inaccurate Telecommunications 
Reporting Worksheet, failure to file the Telecommunications Reporting 
Worksheet, or late payment of contributions. Failure to file the 
Telecommunications Reporting Worksheet or to submit required quarterly 
contributions may subject the contributor to the enforcement provisions 
of the Act and any other applicable law. The Administrator shall advise 
the Commission of any enforcement issues that arise and provide any 
suggested response. Once a contributor complies with the 
Telecommunications Reporting Worksheet filing requirements, the 
Administrator may refund any overpayments made by the contributor, less 
any fees, interest, or costs.

[64 FR 41332, July 30, 1999]



Sec. 54.715  Administrative expenses of the Administrator.

    (a) The annual administrative expenses of the Administrator should 
be commensurate with the administrative expenses of programs of similar 
size, with the exception of the salary levels for officers and employees 
of the Administrator described in paragraph (b) of this section. The 
annual administrative expenses may include, but are not limited to, 
salaries of officers and operations personnel, the costs of borrowing 
funds, equipment costs, operating expenses, directors' expenses, and 
costs associated with auditing contributors of support recipients.
    (b) All officers and employees of the Administrator may be 
compensated at an annual rate of pay, including any non-regular 
payments, bonuses, or other compensation, in an amount not to exceed the 
rate of basic pay in effect for Level I of the Executive Schedule under 
5 U.S.C. 5312.
    (c) The Administrator shall submit to the Commission projected 
quarterly budgets at least sixty (60) days prior to the start of every 
quarter. The Commission must approve the projected quarterly budgets 
before the Administrator disburses funds under the federal universal 
service support mechanisms. The administrative expenses incurred by the 
Administrator in connection with the schools and libraries support 
mechanism, the rural health care support mechanism, the high cost 
support mechanism, the low income support mechanism, the interstate 
access universal service support mechanism, and the interstate common 
line support mechanism shall be deducted from the annual funding of each 
respective support mechanism. The expenses deducted from the annual 
funding for each support mechanism also shall include the 
Administrator's joint and common costs allocated to each support 
mechanism pursuant to the cost allocation manual filed by the 
Administrator under Sec. 64.903 of this chapter.

[63 FR 70576, Dec. 21, 1998, as amended at 65 FR 38690, June 21, 2000; 
65 FR 57739, Sept. 26, 2000; 66 FR 59728, Nov. 30, 2001]



Sec. 54.717  Audits of the Administrator.

    The Administrator shall obtain and pay for an annual audit conducted 
by an independent auditor to examine its operations and books of account 
to determine, among other things, whether the Administrator is properly 
administering the universal service support mechanisms to prevent fraud, 
waste, and abuse:
    (a) Before selecting an independent auditor, the Administrator shall 
submit preliminary audit requirements, including the proposed scope of 
the

[[Page 151]]

audit and the extent of compliance and substantive testing, to the 
Wireline Competition Bureau.
    (b) The Wireline Competition Bureau shall review the preliminary 
audit requirements to determine whether they are adequate to meet the 
audit objectives. The Wireline Competition Bureau shall prescribe 
modifications that shall be incorporated into the final audit 
requirements.
    (c) After the audit requirements have been approved by the Wireline 
Competition Bureau, the Administrator shall engage within thirty (30) 
calendar days an independent auditor to conduct the annual audit 
required by this paragraph. In making its selection, the Administrator 
shall not engage any independent auditor who has been involved in 
designing any of the accounting or reporting systems under review in the 
audit.
    (d) The independent auditor selected by the Administrator to conduct 
the annual audit shall be instructed by the Administrator to develop a 
detailed audit program based on the final audit requirements and shall 
be instructed by the Administrator to submit the audit program to the 
Wireline Competition Bureau. The Wireline Competition Bureau shall 
review the audit program and make modifications, as needed, that shall 
be incorporated into the final audit program. During the course of the 
audit, the Wireline Competition Bureau may direct the Administrator to 
direct the independent auditor to take any actions necessary to ensure 
compliance with the audit requirements.
    (e) During the course of the audit, the Administrator shall instruct 
the independent auditor to:
    (1) Inform the Wireline Competition Bureau of any revisions to the 
final audit program or to the scope of the audit;
    (2) Notify the Wireline Competition Bureau of any meetings with the 
Administrator in which audit findings are discussed; and
    (3) Submit to the Chief of the Wireline Competition Bureau any 
accounting or rule interpretations necessary to complete the audit.
    (f) Within sixty (60) calendar days after the end of the audit 
period, but prior to discussing the audit findings with the 
Administrator, the independent auditor shall be instructed by the 
Administrator to submit a draft of the audit report to the Wireline 
Competition Bureau.
    (g) The Wireline Competition Bureau shall review the audit findings 
and audit workpapers and offer its recommendations concerning the 
conduct of the audit or the audit findings to the independent auditor. 
Exceptions of the Wireline Competition Bureau to the findings and 
conclusions of the independent auditor that remain unresolved shall be 
included in the final audit report.
    (h) Within fifteen (15) calendar days after receiving the Wireline 
Competition Bureau's recommendations and making any revisions to the 
audit report, the Administrator shall instruct the independent auditor 
to submit the audit report to the Administrator for its response to the 
audit findings. At this time the auditor also must send copies of its 
audit findings to the Wireline Competition Bureau. The Administrator 
shall provide the independent auditor time to perform additional audit 
work recommended by the Wireline Competition Bureau.
    (i) Within thirty (30) calendar days after receiving the audit 
report, the Administrator shall respond to the audit findings and send 
copies of its response to the Wireline Competition Bureau. The 
Administrator shall instruct the independent auditor that any reply that 
the independent auditor wishes to make to the Administrator's responses 
shall be sent to the Wireline Competition Bureau as well as the 
Administrator. The Administrator's response and the independent 
auditor's replies shall be included in the final audit report;
    (j) Within ten (10) calendar days after receiving the response of 
the Administrator, the independent auditor shall file with the 
Commission the final audit report.
    (k) Based on the final audit report, the Chief of the Wireline 
Competition Bureau may take any action necessary to ensure that the 
universal service support mechanisms operate in a manner consistent with 
the requirements

[[Page 152]]

of this Part, as well as such other action as is deemed necessary and in 
the public interest.

[67 FR 13227, Mar. 21, 2002]



       Subpart I--Review of Decisions Issued by the Administrator



Sec. 54.719  Parties permitted to seek review of Administrator decisions.

    (a) Any person aggrieved by an action taken by a division of the 
Administrator, as defined in Sec. 54.701(g), may seek review from the 
appropriate Committee of the Board, as defined in Sec. 54.705.
    (b) Any person aggrieved by an action taken by the Administrator 
pertaining to a billing, collection or disbursement matter that falls 
outside the jurisdiction of the Committees of the Board may seek review 
from the Board of Directors of the Administrator, as defined in 
Sec. 54.703.
    (c) Any person aggrieved by an action taken by a division of the 
Administrator, as defined in Sec. 54.701(g), a Committee of the Board of 
the Administrator, as defined in Sec. 54.705, or the Board of Directors 
of the Administrator, as defined in Sec. 54.703, may seek review from 
the Federal Communications Commission, as set forth in Sec. 54.722.

[63 FR 70577, Dec. 21, 1998]



Sec. 54.720  Filing deadlines.

    (a) An affected party requesting review of an Administrator decision 
by the Commission pursuant to Sec. 54.719(c), shall file such request 
within thirty (30) days of the issuance of the decision by a division or 
Committee of the Board of the Administrator.
    (b) An affected party requesting review of a division decision by a 
Committee of the Board pursuant to Sec. 54.719(a), shall file such 
request within thirty (30) days of issuance of the decision by the 
division.
    (c) An affected party requesting review by the Board of Directors 
pursuant to Sec. 54.719(b) regarding a billing, collection, or 
disbursement matter that falls outside the jurisdiction of the 
Committees of the Board shall file such request within thirty (30) days 
of issuance of the Administrator's decision.
    (d) The filing of a request for review with a Committee of the Board 
under Sec. 54.719(a) or with the full Board under Sec. 54.703, shall 
toll the time period for seeking review from the Federal Communications 
Commission. Where the time for filing an appeal has been tolled, the 
party that filed the request for review from a Committee of the Board or 
the full Board shall have thirty (30) days from the date the Committee 
or the Board issues a decision to file an appeal with the Commission.
    (e) Parties shall adhere to the time periods for filing oppositions 
and replies set forth in 47 CFR 1.45.

[63 FR 70577, Dec. 21, 1998]



Sec. 54.721  General filing requirements.

    (a) Except as otherwise provided herein, a request for review of an 
Administrator decision by the Federal Communications Commission shall be 
filed with the Federal Communications Commission's Office of the 
Secretary in accordance with the general requirements set forth in part 
1 of this chapter. The request for review shall be captioned ``In the 
matter of: Request for Review by (name of party seeking review) of 
Decision of Universal Service Administrator'' and shall reference FCC 
Docket Nos. 97-21 and 96-45.
    (b) A request for review pursuant to Sec. 54.719(a) through (c) 
shall contain: (1) a statement setting forth the party's interest in the 
matter presented for review; (2) a full statement of relevant, material 
facts with supporting affidavits and documentation; (3) the question 
presented for review, with reference, where appropriate, to the relevant 
Federal Communications Commission rule, Commission order, or statutory 
provision; (4) a statement of the relief sought and the relevant 
statutory or regulatory provision pursuant to which such relief is 
sought.
    (c) A copy of a request for review that is submitted to the Federal 
Communications Commission shall be served on the Administrator 
consistent with the requirement for service of documents set forth in 
Sec. 1.47 of this chapter.
    (d) If a request for review filed pursuant to Sec. 54.720(a) through 
(c) alleges

[[Page 153]]

prohibitive conduct on the part of a third party, such request for 
review shall be served on the third party consistent with the 
requirement for service of documents set forth in Sec. 1.47 of this 
chapter. The third party may file a response to the request for review. 
Any response filed by the third party shall adhere to the time period 
for filing replies set forth in Sec. 1.45 of this chapter and the 
requirement for service of documents set forth in Sec. 1.47 of this 
chapter.

[63 FR 70578, Dec. 21, 1998]

    Effective Date Note: At 63 FR 70578, Dec. 21, 1998, Sec. 54.721 was 
added. The section contains modified information collection requirements 
and will not become effective until approved by the Office of Management 
and Budget.



Sec. 54.722  Review by the Wireline Competition Bureau or the Commission.

    (a) Requests for review of Administrator decisions that are 
submitted to the Federal Communications Commission shall be considered 
and acted upon by the Wireline Competition Bureau; provided, however, 
that requests for review that raise novel questions of fact, law or 
policy shall be considered by the full Commission.
    (b) An affected party may seek review of a decision issued under 
delegated authority by the Common Carrier Bureau pursuant to the rules 
set forth in part 1 of this chapter.

[63 FR 70578, Dec. 21, 1998, as amended at 67 FR 13228, Mar. 21, 2002]



Sec. 54.723  Standard of review.

    (a) The Wireline Competition Bureau shall conduct de novo review of 
request for review of decisions issue by the Administrator.
    (b) The Federal Communications Commission shall conduct de novo 
review of requests for review of decisions by the Administrator that 
involve novel questions of fact, law, or policy; provided, however, that 
the Commission shall not conduct de novo review of decisions issued by 
the Wireline Competition Bureau under delegated authority.

[67 FR 13228, Mar. 21, 2002]



Sec. 54.724  Time periods for Commission approval of Administrator decisions.

    (a) The Wireline Competition Bureau shall, within ninety (90) days, 
take action in response to a request for review of an Administrator 
decision that is properly before it. The Wireline Competition Bureau may 
extend the time period for taking action on a request for review of an 
Administrator decision for a period of up to ninety days. The Commission 
may also at any time, extend the time period for taking action of a 
request for review of an Administrator decision pending before the 
Wireline Competition Bureau.
    (b) The Commission shall issue a written decision in response to a 
request for review of an Administrator decision that involves novel 
questions of fact, law, or policy within ninety (90) days. The 
Commission may extend the time period for taking action on the request 
for review of an Administrator decision. The Wireline Competition Bureau 
also may extend action on a request for review of an Administrator 
decision for a period of up to ninety days.

[67 FR 13228, Mar. 21, 2002]



Sec. 54.725  Universal service disbursements during pendency of a request for review and Administrator decision.

    (a) When a party has sought review of an Administrator decision 
under Sec. 54.719(a) through (c) in connection with the schools and 
libraries support mechanism or the rural health care support mechanism, 
the Administrator shall not reimburse a service provider for the 
provision of discounted services until a final decision has been issued 
either by the Administrator or by the Federal Communications Commission; 
provided, however, that the Administrator may disburse funds for any 
amount of support that is not the subject of an appeal.
    (b) When a party has sought review of an Administrator decision 
under Sec. 54.719(a) through (c) in connection with the high cost and 
low income support mechanisms, the Administrator shall not disburse 
support to a service provider until a final decision has been issued 
either by the Administrator or

[[Page 154]]

by the Federal Communications Commission; provided, however, that the 
Administrator may disburse funds for any amount of support that is not 
the subject of an appeal.



    Subpart J--Interstate Access Universal Service Support Mechanism



Sec. 54.800  Terms and definitions.

    (a) Average Price Cap CMT Revenue Per Line Month in a Study Area has 
the same meaning as that term is defined in Sec. 61.3(d) of this 
chapter, except that it includes exogenous changes in effect prior to 
the effective date of a calculation made pursuant to Sec. 54.808 and 
exogenous changes not yet effective related to the sale or acquisition 
of exchanges, but excludes any other exogenous changes or other changes 
made pursuant to Sec. 61.45(i)(4) of this chapter that are not yet 
effective.
    (b) Base Period Lines. For purposes of calculations pursuant to this 
subpart, Base Period Lines are the number of lines for a given study 
area or zone as of the end of the quarter ending 6 months prior to the 
effective date of a calculation pursuant to Sec. 54.808.
    (c) Interstate Access Universal Service Support Benchmark shall 
mean, for residential and single-line business lines, $7.00, and for 
multi-line business lines, $9.20.
    (d) Minimum Adjustment Amount (MAA) is defined in Sec. 54.806(f).
    (e) MAA Phase In Percentage is:
    50% as of July 1, 2000,
    75% as of July 1, 2001,
    100% as of July 1, 2002.
    (f) Minimum Delta (MD) is defined in Sec. 54.806(d).
    (g) Minimum Support Requirement (MSR) is defined in Sec. 54.806(g).
    (h) Nationwide Total Above Benchmark Revenues is defined in 
Sec. 54.806(b).
    (i) Price Cap Local Exchange Carrier is defined in Sec. 61.3(aa) of 
this chapter.
    (j) Preliminary Minimum Access Universal Service Support for a Study 
Area is the amount calculated pursuant to Sec. 54.804.
    (k) Preliminary Study Area Universal Service Support (PSAUSS) is 
defined in Sec. 54.806(c).
    (l) Study Area Above Benchmark Revenues is the sum of all Zone Above 
Benchmark Revenues for all zones in the study area.
    (m) Study Area Access Universal Service Support (SAAUS) is defined 
in Sec. 54.806 (i) and (j).
    (n) Total National Minimum Delta (TNMD) is the nationwide sum of all 
study area Minimum Deltas.
    (o) Total National Minimum Support Requirement (TNMSR) is the sum of 
the MSR for all price cap local exchange carrier area study areas.
    (p) Zone Above Benchmark Revenues is defined in Sec. 54.805(a)(2).
    (q) Zone Average Revenue per Line. The amount calculated as follows:

    Zone Average Revenue Per Line = (25% * (Loop + Port)) + U (Uniform 
revenue per line adjustment)

Where:
Loop = the price for unbundled loops in a UNE zone.
Port = the price for switch ports in that UNE zone.
U = [(Average Price Cap CMT Revenue per Line month in a study area * 
          price cap local exchange carrier Base Period Lines) - (25% * 
          [Sigma] (price cap local exchange carrier Base Period Lines in 
          a UNE Zone* ((Loop + Port ) for all zones)))] + price cap 
          local exchange carrier Base Period Lines in a study area.

[65 FR 38690, June 21, 2000; 65 FR 57739, Sept. 26, 2000]



Sec. 54.801  General.

    (a) The total amount of universal service support under this 
subpart, excluding administrative expenses, for areas served by price 
cap local exchange carriers as of June 30, 2000, is targeted to be $650 
million per year, if no exchanges, other than those offered for sale 
prior to January 1, 2000, are sold to non-price-cap local exchange 
carriers or purchased from non-price cap local exchange carriers by 
price cap local exchange carriers.
    (b) In the event that all or a portion of a study area served by a 
price cap local exchange carrier is sold to an entity other than a price 
cap local exchange carrier, and the study area or portion thereof was 
not offered for sale prior to January 1, 2000, then the support that 
would otherwise be provided under this subpart, had such study area or 
portion thereof not been sold, will

[[Page 155]]

not be distributed or collected. Subsequent calculations will use the 
last reported data for the study area or portion thereof that was sold 
to determine the amount that will not be distributed or collected.
    (c) In the event that a price cap local exchange carrier acquires 
additional exchanges, from an entity other than a price cap local 
exchange carrier, that acquisition should be reported to the 
Administrator pursuant to Sec. 54.802 and included in the determination 
of study area support pursuant to Sec. 54.806 for the areas served by 
the acquiring price cap LEC, beginning with the next support 
recalculation pursuant to Sec. 54.808.
    (d) In the event that a price cap local exchange carrier acquires 
additional exchanges from an entity that is also a price cap local 
exchange carrier, the acquiring price cap local exchange carrier will 
receive support under this subpart at the same level as the selling 
price cap local exchange carrier formerly received, and both carriers 
will adjust their line counts accordingly beginning with the next 
quarterly report to the Administrator. At the subsequent report to the 
Administrator for purposes of recalculating support as required by 
Sec. 54.808, the acquiring and selling price cap local exchange carriers 
will reflect the acquired and sold lines, and will adjust the Average 
CMT Revenue per Line month for the affected study areas accordingly.
    (e) The Administrator for the fund created by this subpart shall be 
the Universal Service Administrative Company.

[65 FR 38690, June 21, 2000; 65 FR 57739, Sept. 26, 2000]



Sec. 54.802  Obligations of local exchange carriers and the Administrator.

    (a) Each Eligible Telecommunications Carrier that is providing 
service within an area served by a price cap local exchange carrier 
shall submit to the Administrator, on a quarterly basis on the last 
business day of March, June, September, and December of each year line 
count data showing the number of lines it serves for the period ending 
three months prior to the reporting date, within each price cap local 
exchange carrier study area disaggregated by UNE Zone if UNE Zones have 
been established within that study area, showing residential/single-line 
business and multi-line business line counts separately. For purposes of 
this report, and for purposes of computing support under this subpart, 
the aggregated residential/single-line business class lines reported 
include single and non-primary residential lines, single-line business 
lines, ISDN BRI and other related residential class lines. Similarly, 
the multi-line business class lines reported include multi-line 
business, centrex, ISDN PRI and other related business class lines 
assessed the End User Common Line charge pursuant to Sec. 69.152 of this 
chapter. For purposes of this report and for purposes of computing 
support under this subpart, lines served using resale of the price cap 
local exchange carrier's service pursuant to section 251(c)(4) of the 
Communications Act of 1934, as amended, shall be considered lines served 
by the price cap local exchange carrier only and must be reported 
accordingly.
    (b) In addition to the information submitted pursuant to paragraph 
(a) of this section, each price cap local exchange carrier must submit 
to the Administrator, on June 30, 2000, October 15, 2000, and April 16, 
2001 and annually thereafter or as determined by the Administrator 
according to Sec. 54.808:
    (1)(i) Average Price Cap CMT Revenue per Line month in a study area 
for each of its study areas;
    (ii) The rates established for UNE Loops and UNE Line Ports, by zone 
in those study areas where UNE Zones have been established as of the 
date of filing; and
    (iii) Make available information sufficient to determine the 
boundaries of each UNE Zone within each of its study areas where such 
zones have been established;
    (2) Provided, however, that after the June 30, 2000 filing, if there 
have been no changes since its previous filing a company may submit a 
statement that there have been no changes in lieu of such information, 
and further provided that, for study areas in which UNE Zones have been 
newly established since the last filing pursuant to this paragraph, the 
price cap local exchange

[[Page 156]]

carrier shall also report the information required by paragraphs 
(b)(1)(ii) and (b)(1)(iii) of this section to the Administrator on July 
15, 2000, or January 15, 2001, as required.
    (c) An eligible telecommunications carrier shall be eligible for 
support pursuant to this subpart only after it has filed all of the 
information required by paragraphs (a) through (c) of this section, 
where applicable. An eligible telecommunications carrier shall receive 
payment of support pursuant to this subpart only for such months the 
carrier is actually providing service to the end user. The Administrator 
shall ensure that there is periodic reconciliation of support payments.
    (d) Upon receiving the information required to be filed in 
paragraphs (a) and (b) of this section, the Administrator shall:
    (1) Perform the calculations described in Secs. 54.804 through 
54.807 of this subpart;
    (2) Publish the results of these calculations showing Interstate 
Access Universal Service Support Per Line available in each price cap 
local exchange carrier study area, by UNE Zone and customer class;
    (3) Collect the funds necessary to provide support pursuant to this 
subpart in accordance with subpart H;
    (4) Distribute support calculated pursuant to the rules contained in 
this subpart; and
    (5) Report quarterly to the Commission on the collection and 
distribution of funds under this subpart as described in Sec. 54.701(g). 
Fund distribution reporting will be by state and by eligible 
telecommunications carrier within the state.

[65 FR 38690, June 21, 2000; 65 FR 57739, 57740, Sept. 26, 2000]



Sec. 54.803  Universal service zones.

    (a) The zones used for determining interstate access universal 
service support shall be the same zones that would be used for End User 
Common Line (EUCL) charge deaveraging as described in Sec. 69.152(q)(2) 
of this chapter.
    (b) In a price cap study area where the price cap local exchange 
carrier has not established state-approved prices for UNE loops by zone, 
the Administrator shall develop an estimate of the local exchange 
carrier's Zone Above Benchmark Revenues for transitional purposes, in 
order to reserve a portion of the fund for that study area. This 
estimate will be included by the Administrator in the Nationwide Study 
Area Above Benchmark Revenues calculated pursuant to Sec. 54.806.
    (1) For the purpose of developing this transitional estimate, the 
loop and port costs estimated by the FCC cost model, or other substitute 
method if no model is available, shall be used.
    (2) For the purpose of developing this transitional estimate, the 
administrator shall construct three zones. Wire centers within the study 
area will be grouped into these zones in such a way that each zone is 
assigned approximately one third of local exchange carrier base period 
lines in the study area, with the lowest cost wire centers assigned to 
Zone 1, the highest cost wire centers assigned to Zone 3, and the 
remainder to Zone 2.

[65 FR 38690, June 21, 2000; 65 FR 57740, Sept. 26, 2000]



Sec. 54.804  Preliminary minimum access universal service support for a study area calculated by the Administrator.

    (a) If Average Price Cap CMT Revenue per Line month is greater than 
$9.20 then: Preliminary Minimum Access Universal Service Support (for a 
study area) = Average Price Cap CMT Revenue per Line month in a study 
area * price cap local exchange carrier Base Period Lines * 12)-(($7.00 
* price cap local exchange carrier Base Period Residential and Single-
Line Business Lines * 12) + ($9.20 * price cap local exchange carrier 
Base Period Multi-line Business Lines * 12)).
    (b) If Average Price Cap CMT Revenue per Line month in a study area 
is greater than $7.00 but less than $9.20 then: Preliminary Minimum 
Access Universal Service Support (for a study area) = (Average Price Cap 
CMT Revenue per Line month in a study area--$7.00) * (price cap local 
exchange carrier Base Period Residential and Single-Line Business Lines 
* 12).
    (c) If Average Price Cap CMT Revenue per Line month in a study area 
is less than $7.00 then the Preliminary

[[Page 157]]

Minimum Access Universal Service Support (for a study area) is zero.

[65 FR 57740, Sept. 26, 2000]



Sec. 54.805  Zone and study area above benchmark revenues calculated by the Administrator.

    (a) The following steps shall be performed by the Administrator to 
determine Zone Above Benchmark Revenues for each price cap local 
exchange carrier.
    (1) Calculate Zone Average Revenue Per Line.
    (2) Calculate Zone Above Benchmark Revenues. Zone Above Benchmark 
Revenues is the sum of Zone Above Benchmark Revenues for Residential and 
Single-Line Business Lines and Zone Above Benchmark Revenues for Multi-
Line Business Lines. Zone Above Benchmark Revenues for Residential and 
Single-Line Business Lines is, within each zone, (Zone Average Revenue 
Per Line minus $7.00) multiplied by all eligible telecommunications 
carrier Base Period Residential and Single-Line Business Lines times 12. 
If negative, the Zone Above Benchmark Revenues for Residential and 
Single-Line Business Lines for the zone is zero. Zone Above Benchmark 
Revenues for Multi-line Business Lines is, within each zone, (Zone 
Average Revenue Per Line minus $9.20) multiplied by all eligible 
telecommunications carrier zone Base Period Multi-line Business Lines 
times 12. If negative, the Zone Above Benchmark Revenues for Multi-line 
Business Lines for the zone is zero.
    (b) Study Area Above Benchmark Revenues is the sum of Zone Above 
Benchmark Revenues for all zones in the study area.

[65 FR 38690, June 21, 2000; 65 FR 57740, Sept. 26, 2000]



Sec. 54.806  Calculation by the Administrator of interstate access universal service support for areas served by price cap local exchange carriers.

    (a) The Administrator, based on the calculations performed in 
Secs. 54.804 and 54.805, shall calculate the Interstate Access Universal 
Service Support for areas served by price cap local exchange carriers 
according to the following methodology:
    (b) Calculate Nationwide Total Above Benchmark Revenues. Nationwide 
Total Above Benchmark Revenues is the sum of all Study Area Above 
Benchmark Revenues for all study areas served by local exchange 
carriers.
    (c) Calculate Preliminary Study Area Universal Service Support 
(PSAUSS).
    (1) If the Nationwide Total Above Benchmark Revenues is greater than 
$650 million, then the Preliminary Study Area Universal Service Support 
(PSAUSS) equals the Study Area Above Benchmark Revenues multiplied by 
the ratio of $650 million to Nationwide Total Above Benchmark Revenues 
(i.e., Preliminary Study Area Universal Service Support = Study Area 
Above Benchmark Revenues *($650 Million/Nationwide Total Above Benchmark 
Revenues)).
    (2) If the Nationwide Total Above Benchmark Revenues is not greater 
than $650 million, PSAUSS equals the Study Area Above Benchmark 
Revenues.
    (d) Calculate the Minimum Delta (MD) by study area. Within each 
study area the Minimum Delta will be equal to the Preliminary Minimum 
Access Universal Service Support less the PSAUSS, if the difference is 
greater than zero. If the difference is less than or equal to zero, the 
MD is equal to zero.
    (e) Calculate the Total National Minimum Delta (TNMD) by summing all 
study area Minimum Deltas nationwide.
    (f) Calculate the Minimum Adjustment Amount. (1) If the TNMD is 
greater than $75 million, then the Minimum Adjustment Amount (MAA) 
equals the MAA Phase In Percentage times the MD by study area times the 
ratio of $75 million to TNMD.
    (2) If the TNMD is less than $75 million, then the MAA equals the 
product of the MAA Phase In Percentage and the MD by study area.
    (g) Calculate the Minimum Support Requirement (MSR). The Minimum 
Support Requirement for a study area equals the PSAUSS plus the MAA.
    (h) Calculate the Total National Minimum Support Requirement 
(TNMSR), which equals the sum of the MSR for

[[Page 158]]

all study areas in which the Preliminary Minimum Access Universal 
Service Support is greater than or equal to the PSAUSS.
    (i) Calculate Study Area Access Universal Service Support (SAAUS) 
for a study area in which the price cap local exchange carrier has 
geographically deaveraged state-approved rates for UNE loops:
    (1) For study areas in which the Preliminary Minimum Access 
Universal Service Support is greater than PSAUSS, and within which the 
price cap local exchange carrier has established geographically 
deaveraged state-approved rates for UNE loops, the SAAUS for that study 
area is the MSR.
    (2) For study areas in which the Preliminary Minimum Access 
Universal Service Support is less than PSAUSS, and within which the 
price cap local exchange carrier has established geographically 
deaveraged state-approved rates for UNE loops, the SAAUS for that study 
area is equal to:
    PSAUSS * ($650 million - TNMSR) / (the sum of PSAUSS of study areas 
where the Preliminary Minimum Access Universal Service Support is less 
than PSAUSS).
    (j) Calculate Study Area Access Universal Service Support (SAAUS) 
for a price cap local exchange carrier that has not established 
geographically deaveraged state-approved rates for UNE loops. In such 
study areas, the SAAUS shall be the lesser of the Preliminary Minimum 
Access Universal Service Support or:
    (1) For study areas in which the Preliminary Minimum Access 
Universal Service Support is greater than PSAUSS, and for which an 
estimate has been made for deaveraged UNE loop costs, the SAAUS for that 
study area is the MSR.
    (2) For study areas in which the Preliminary Minimum Access 
Universal Service Support is less than PSAUSS, and for which an estimate 
has been made for deaveraged UNE loop costs, the SAAUS for that study 
area is equal to:
    PSAUSS * ($650 million - TNMSR) / (the sum of PSAUSS of study areas 
where the Preliminary Minimum Access Universal Service Support is less 
than PSAUSS).

[65 FR 38690, June 21, 2000; 65 FR 57740, Sept. 26, 2000]



Sec. 54.807  Interstate access universal service support.

    (a) Each Eligible Telecommunications Carrier (ETC) that provides 
supported service within the study area of a price cap local exchange 
carrier shall receive Interstate Access Universal Service Support for 
each line that it serves within that study area.
    (b) In any study area within which the price cap local exchange 
carrier has not established state approved geographically deaveraged 
rates for UNE loops, the Administrator shall calculate the Interstate 
Access Universal Service Support Per Line by dividing Study Area Access 
Universal Service Support by twelve times all eligible 
telecommunications carriers' base period lines in that study area 
adjusted for growth during the relevant support period based on the 
average nationwide annual growth in eligible lines during the three 
previous years. For the purpose of calculating growth, the Administrator 
shall use a simple average of annual growth rates for total switched 
access lines for the three most recent years as reported in the Common 
Carrier Bureau Report, Statistics of Communications Common Carriers, 
Table 6.10--Selected Operating Statistics. Interested parties may obtain 
this report from the U.S. Government Printing Office or by downloading 
it from the Federal Communication Commission's website http:// 
www.fcc.gov/ccb/stats.
    (c) In any study area within which the price cap local exchange 
carrier has established state approved geographically deaveraged rates 
for UNE loops, the Administrator shall calculate the Interstate Access 
Universal Service Support Per Line for each customer class and zone 
using all eligible telecommunications carriers' base period lines by 
customer class and zone adjusted for growth during the relevant support 
period based on the average nationwide annual growth in eligible lines 
during the three previous years. For the purpose of calculating growth, 
the Administrator shall use a simple average of annual growth rates for

[[Page 159]]

total switched access lines for the three most recent years as reported 
in the Wireline Competition Bureau Report, Statistics of Communications 
Common Carriers, Table 6.10--Selected Operating Statistics. Support 
shall be allocated to lines in the highest cost UNE zone first, and will 
``cascade'' to lines in lower cost UNE zones to the extent that 
sufficient funding is available. Beginning with the zone with the 
highest Zone Average Revenue Per Line, support will be applied in the 
following order of priority:
    (1) To all lines in the highest zone, to eliminate the amount per 
line by which Zone Average Revenue Per Line exceeds the higher of $9.20 
or the Average Revenue Per Line in the next highest zone;
    (2) If the Zone Average Revenue Per Line in the next highest zone is 
greater than $9.20, then to all lines in both zones to eliminate the 
amount per line by which Zone Average Revenue per Line exceeds $9.20 or 
the Zone Average Revenue Per Line in the third highest zone. This 
application of support will continue to additional zones in the same 
fashion until the amount per line by which Zone Average Revenue Per Line 
exceeds $9.20 has been eliminated in all zones, or until the available 
support has been exhausted;
    (3) To all residential and single-line business lines in the highest 
zone, to eliminate the remaining amount per line that Zone Average 
Revenue Per Line for these lines exceeds the higher of $7.00 or Zone 
Average Revenue Per Line in the next highest zone;
    (4) If the Zone Average Revenue per Line in the next highest zone is 
greater than $7.00, then to all residential and single-line business 
lines in both zones to eliminate the remaining amount per line by which 
Zone Average Revenue Per Line exceeds $7.00. This application of support 
will continue to additional zones in the same fashion until the 
difference between Zone Average Revenue Per Line and $7.00 has been 
eliminated in all zones, or until the available support has been 
exhausted.
    (d) Notwithstanding the provisions of Sec. 54.307(a)(2), the per-
line support amount determined within each zone by applicable customer 
class under paragraph (b) or (c) of this section is portable among all 
eligible telecommunications carriers providing service within that zone.

[65 FR 38690, June 21, 2000; 65 FR 57740, Sept. 26, 2000, as amended at 
67 FR 13228, Mar. 21, 2002]



Sec. 54.808   Transition provisions and periodic calculation.

    Study Area Access Universal Service Support amounts for the area 
served by each price cap local exchange carrier will be calculated as of 
July 1, 2000, January 1, 2001, July 1, 2001 and thereafter as determined 
by the Administrator, but at least annually.

[65 FR 38690, June 21, 2000; 65 FR 57740, Sept. 26, 2000]



Sec. 54.809  Carrier certification.

    (a) Certification. Carriers that desire to receive support pursuant 
to Sec. 54.807 must file a certification with the Administrator and the 
Commission stating that all interstate access universal service support 
provided to such carrier will be used only for the provision, 
maintenance, and upgrading of facilities and services for which the 
support is intended. Support provided pursuant to Sec. 54.807 shall only 
be provided to the extent that the carrier has filed the requisite 
certification pursuant to this section.
    (b) Certification format. A certification pursuant to this section 
may be filed in the form of a letter from an authorized representative 
for the carrier, and must be filed with both the Office of the Secretary 
of the Commission clearly referencing CC Docket No. 96-45, and with the 
Administrator of the interstate access universal service support 
mechanism, on or before the filing deadlines set forth in paragraph (c) 
of this section. All of the certifications filed by carriers pursuant to 
this section shall become part of the public record maintained by the 
Commission.
    (c) Filing deadlines. In order for a price cap local exchange 
carrier, and/or an eligible telecommunications carrier serving lines in 
the service area of a price cap local exchange carrier, to receive 
interstate access universal service support, such carrier must file an 
annual certification, as described in paragraph (b) of this section, on 
the

[[Page 160]]

date that it first files its line count information pursuant to 
Sec. 54.802, and thereafter on June 30th of each year.

[65 FR 38690, June 21, 2000; 65 FR 57740, Sept. 26, 2000]



 Subpart K--Interstate Common Line Support Mechanism for Rate-of-Return 
                                Carriers

    Source: 66 FR 59728, Nov. 30, 2001, unless otherwise noted.



Sec. 54.901  Calculation of Interstate Common Line Support.

    (a) Interstate Common Line Support available to a rate-of-return 
carrier shall equal the Common Line Revenue Requirement per Study Area 
as calculated in accordance with part 69 of this chapter minus:
    (1) The study area revenues obtained from end user common line 
charges at their allowable maximum as determined by Secs. 69.104(n) and 
69.104(o) of this chapter;
    (2) The carrier common line charge revenues to be phased out 
pursuant to Sec. 69.105 of this chapter;
    (3) The special access surcharge pursuant to Sec. 69.114 of this 
chapter;
    (4) The line port costs in excess of basic analog service pursuant 
to Sec. 69.130 of this chapter; and
    (5) Any Long Term Support for which the carrier is eligible or, if 
the carrier ceased participation in the NECA common line pool after 
October 11, 2001, any Long Term Support for which the carrier would have 
been eligible if it had not ceased its participation in the pool.
    (b) The per-line Interstate Common Line Support available to a 
competitive eligible telecommunications carrier serving lines in a study 
area served by a rate-of-return carrier shall be calculated by the 
Administrator as follows:
    (1) If the rate-of-return carrier has disaggregated the support it 
receives in the study area pursuant to Sec. 54.315, the Administrator 
shall calculate the amount of Interstate Common Line Support targeted to 
each disaggregation zone by the rate-of-return carrier (targeted 
Interstate Common Line Support). If the rate-of-return carrier has 
chosen not to disaggregate its support for a study area pursuant to 
Sec. 54.315, then the entirety of its Interstate Common Line Support for 
the study area shall be considered targeted Interstate Common Line 
Support for purposes of performing the calculations in this section.
    (2) In each disaggregation zone or undisaggregated study area, the 
Administrator shall calculate the Average Interstate Common Line Support 
by dividing the rate-of-return carrier's targeted Interstate Common Line 
Support by its total lines served.
    (3) The Administrator shall then calculate the Interstate Common 
Line Support available to the competitive eligible telecommunications 
carrier for each line it serves for each customer class in a 
disaggregation zone or undisaggregated study area by the following 
formula:
    (i) If the Average Interstate Common Line Support is greater than 
$2.70 multiplied by the number of residential and single-line business 
lines served by the rate-of-return carrier in the disaggregation zone or 
undisaggregated study area, then:
    (A) Interstate Common Line Support per Multi-Line Business Line = 
(Average Interstate Common Line Support - $2.70 x residential and 
single-line business lines served by the rate-of-return carrier) / 
(total lines served by the rate-of-return carrier); and
    (B) Interstate Common Line Support per Residential and Single-Line 
Business Line = Interstate Common Line Support per Multi-Line Business 
Line + $2.70.
    (ii) If the Average Interstate Common Line Support is less than or 
equal to $2.70 multiplied by residential and single-line business lines 
served by the rate-of-return carrier in the disaggregation zone or 
undisaggregated study area, but greater than $0, then:
    (A) Interstate Common Line Support per Multi-Line Business Line = 
$0; and
    (B) Interstate Common Line Support per Residential and Single-Line 
Business Line = Average Interstate Common Line Support / residential and 
single line business lines served by the rate-of-return carrier.

[[Page 161]]

    (iii) If the Average Interstate Common Line Support is equal to $0, 
then the competitive eligible telecommunications carrier shall receive 
no Interstate Common Line Support for lines served in that 
disaggregation zone or undisaggregated study area.



Sec. 54.902  Calculation of Interstate Common Line Support for transferred exchanges.

    (a) In the event that a rate-of-return carrier acquires exchanges 
from an entity that is also a rate-of-return carrier, Interstate Common 
Line Support for the transferred exchanges shall be distributed as 
follows.
    (1) Each carrier may report its updated line counts to reflect the 
transfer in the next quarterly line count filing pursuant to 
Sec. 54.903(a) that applies to the period in which the transfer 
occurred. During a transition period from the filing of the updated line 
counts until the end of the funding year, the Administrator shall adjust 
the Interstate Common Line Support received by each carrier based on the 
updated line counts and the per-line Interstate Common Line Support, 
categorized by customer class and, if applicable, disaggregation zone, 
of the selling carrier. If the acquiring carrier does not file a 
quarterly update of its line counts, it will not receive Interstate 
Common Line Support for those lines during the transition period.
    (2) Each carriers' projected data for the following funding year 
filed pursuant to Sec. 54.903(c) shall reflect the transfer of 
exchanges.
    (3) Each carriers' actual data filed pursuant to Sec. 54.903(d) 
shall reflect the transfer of exchanges. All post-transaction Interstate 
Common Line Support shall be subject to true up by the Administrator 
pursuant to Sec. 54.903(e).
    (b) In the event that a rate-of-return carrier acquires exchanges 
from a price cap carrier that are incorporated into one of the rate-of-
return carrier's existing study areas, Interstate Common Line Support 
for the transferred exchanges shall be distributed as follows.
    (1) The acquiring carrier may report its updated line counts for the 
study area into which the acquired lines are incorporated in the next 
quarterly line count filing pursuant to Sec. 54.903(a) that applies to 
the period in which the transfer occurred. During a transition period 
from the filing of the updated line counts until the end of the funding 
year, the Administrator shall adjust the Interstate Common Line Support 
received by the acquiring carrier based on the updated line counts and 
the per-line amounts Interstate Common Line Support for the study area 
served by the acquiring carrier. If necessary, the Administrator shall 
develop an average per-line support amount to reflect various per-line 
amounts in multiple disaggregation zones served by the acquiring 
carrier. If the acquiring carrier does not file a quarterly update of 
its line counts, it will not receive Interstate Common Line Support for 
those lines during the transition period.
    (2) The acquiring carrier's projected data for the following funding 
year filed pursuant to Sec. 54.903(c) shall reflect the transfer of 
exchanges.
    (3) The acquiring carrier's actual data filed pursuant to 
Sec. 54.903(d) shall reflect the transfer of exchanges. All post-
transaction Interstate Common Line Support shall be subject to true up 
by the Administrator pursuant to Sec. 54.903(e).
    (c) In the event that a rate-of-return carrier acquires exchanges 
from a price cap carrier that are not incorporated into one of the rate-
of-return carrier's existing study areas, Interstate Common Line Support 
for the transferred exchanges shall be distributed as follows.
    (1) The acquiring rate-of-return may submit to the Administrator a 
projected Interstate Common Line Revenue Requirement for the acquired 
exchanges for the remainder of the funding year in the next quarterly 
report to the Administrator. The Administrator shall distribute 
Interstate Common Line Support pursuant to the partial year projected 
Interstate Common Line Revenue Requirement for the remainder of the 
funding year. If the acquiring carrier does not file a projected 
Interstate Common Line Revenue Requirement, it will not receive 
Interstate Common Line Support for those exchanges during the transition 
period.
    (2) The acquiring carrier's projected data for the following funding 
year

[[Page 162]]

filed pursuant to Sec. 54.903(c) shall reflect the transfer of 
exchanges.
    (3) The acquiring carrier's actual data filed pursuant to 
Sec. 54.903(d) shall reflect the transfer of exchanges. All post-
transaction Interstate Common Line Support shall be subject to true up 
by the Administrator pursuant to Sec. 54.903(e).
    (d) In the event that an entity other than a rate-of-return carrier 
acquires exchanges from a rate-of-return carrier, per-line Interstate 
Common Line Support will not transfer.
    (e) This section does not alter any Commission rule governing the 
sale or transfer of exchanges, including the definition of ``study 
area'' in part 36.



Sec. 54.903  Obligations of rate-of-return carriers and the Administrator.

    (a) To be eligible for Interstate Common Line Support, each rate-of-
return carrier shall make the following filings with the Administrator.
    (1) On April 18, 2002, each rate-of-return carrier shall submit to 
the Administrator the number of lines it serves as of September 30, 
2001, within each rate-of-return carrier study area, by disaggregation 
zone if disaggregation zones have been established within that study 
area pursuant to Sec. 54.315, showing residential and single-line 
business line counts and multi-line business line counts separately. For 
purposes of this report, and for purposes of computing support under 
this subpart, the residential and single-line business class lines 
reported include lines assessed the residential and single-line business 
End User Common Line charge pursuant to Sec. 69.104 of this chapter, and 
the multi-line business class lines reported include lines assessed the 
multi-line business End User Common Line charge pursuant to Sec. 69.104 
of this chapter. For purposes of this report, and for purposes of 
computing support under this subpart, lines served using resale of the 
rate-of-return local exchange carrier's service pursuant to section 
251(c)(4) of the Communications Act of 1934, as amended, shall be 
considered lines served by the rate-of-return carrier only and must be 
reported accordingly. Beginning July 31, 2002, each rate-of-return 
carrier shall submit the information described in this paragraph in 
accordance with the schedule in Sec. 36.611 of this chapter.
    (2) Each rate-of-return carrier in service areas where a competitive 
eligible telecommunications carrier has initiated service and reported 
line count data pursuant to Sec. 54.307(c) shall submit the information 
in paragraph (a) of this section in accordance with the schedule in 
Sec. 36.612 of this chapter. A rate-of-return carrier may submit the 
information in paragraph (a) of this section in accordance with the 
schedule in Sec. 36.612 of this chapter, even if it is not required to 
do so. If a rate-of-return carrier makes a filing under this paragraph, 
it shall separately indicate any lines that it has acquired from another 
carrier that it has not previously reported pursuant to paragraph (a) of 
this section, identified by customer class and the carrier from which 
the lines were acquired.
    (3) Each rate-of-return carrier shall submit to the Administrator, 
on April 18, 2002, and annually thereafter on March 31st information 
needed to calculate the Projected Annual Common Line Revenue Requirement 
for each of its study areas in the upcoming funding year. A rate-of-
return carrier's Projected Annual Common Line Revenue Requirement shall 
be calculated in accordance with part 69 of this chapter. The funding 
year shall be July 1st of the current year through June 30th of the next 
year. Rate-of-return carriers will be permitted to submit corrections to 
their projected Annual Common Line Revenue Requirement until April 10, 
2002, and annually thereafter until April 10th.
    (4) Each rate-of-return carrier shall submit to the Administrator, 
on July 31, 2003, and annually thereafter on July 31st, the carrier's 
common line costs as defined in part 69 of this chapter for each study 
area in which it operates for the previous calendar year. Such data 
shall be used by the Administrator to make adjustments to monthly per-
line Interstate Common Line Support amounts in the following calendar 
year to the extent of any difference between the carrier's Projected 
Annual Common Line Revenue Requirement and the carrier's actual costs 
during the relevant period. A

[[Page 163]]

rate-of-return carrier may update the information submitted on July 31st 
one or more times quarterly on a rolling year basis according to the 
schedule in Sec. 36.612 of this chapter.
    (b) Upon receiving the information required to be filed in paragraph 
(a) of this section, the Administrator shall:
    (1) Perform the calculations described in Sec. 54.901;
    (2) Publish the results of these calculations showing Interstate 
Common Line Support Per Line available in each rate-of-return carrier 
study area, by Disaggregation Zone and customer class;
    (3) Perform periodic reconciliation of projected common line revenue 
requirements based on data provided by carriers pursuant to paragraph 
(a)(3) of this section and actual common line revenue requirements based 
on data provided by carriers pursuant to paragraph (a)(4) of this 
section;
    (4) Collect the funds necessary to provide support pursuant to this 
subpart in accordance with subpart H of this part;
    (5) Distribute support calculated pursuant to the rules contained in 
this subpart; and
    (6) Report quarterly to the Commission on the collection and 
distribution of funds under this subpart as described in Sec. 54.702(i). 
Fund distribution reporting will be by state and by eligible 
telecommunications carrier within the state.

[66 FR 59728, Nov. 30, 2001, as amended at 67 FR 15493, Apr. 2, 2002; 67 
FR 19809, Apr. 23, 2002]



Sec. 54.904  Carrier certification.

    (a) Certification. Carriers that desire to receive support pursuant 
to this subpart shall file a certification with the Administrator and 
the Federal Communications Commission stating that all Interstate Common 
Line Support provided to such carrier will be used only for the 
provision, maintenance, and upgrading of facilities and services for 
which the support is intended. Support provided pursuant to this subpart 
shall only be provided to the extent that the carrier has filed the 
requisite certification pursuant to this section.
    (b) Certification format. A certification pursuant to this section 
may be filed in the form of a letter from an authorized representative 
for the carrier, and must be filed with both the Administrator and the 
Office of the Secretary of the Federal Communication Commission clearly 
referencing CC Docket No. 96-45, on or before the filing deadlines set 
forth in paragraph (d) of this section.
    (c) All of the certifications filed by carriers pursuant to this 
section shall become part of the public record maintained by the 
Commission.
    (d) Filing deadlines. In order for a rate-of-return carrier, and/or 
an eligible telecommunications carrier serving lines in the service area 
of a rate-of-return carrier, to receive Interstate Common Line Support, 
such carrier must file an annual certification, as described in 
paragraph (b) of this section, on the date that it first files its line 
count information pursuant to Sec. 54.903, and thereafter on June 30th 
of each year.



PART 59--INFRASTRUCTURE SHARING--Table of Contents




Sec.
59.1  General duty.
59.2  Terms and conditions of infrastructure sharing.
59.3  Information concerning deployment of new services and equipment.
59.4  Definition of ``qualifying carrier''.

    Authority: 47 U.S.C. 154(i), 154(j), 201-205, 259, 303(r), 403.

    Source: 62 FR 9713, Mar. 4, 1997, unless otherwise noted.



Sec. 59.1  General duty.

    Incumbent local exchange carriers (as defined in 47 U.S.C. section 
251(h)) shall make available to any qualifying carrier such public 
switched network infrastructure, technology, information, and 
telecommunications facilities and functions as may be requested by such 
qualifying carrier for the purpose of enabling such qualifying carrier 
to provide telecommunications services, or to provide access to 
information services, in the service area in which such qualifying 
carrier has obtained designation as an eligible telecommunications 
carrier under section 214(e) of 47 U.S.C.

[[Page 164]]



Sec. 59.2  Terms and conditions of infrastructure sharing.

    (a) An incumbent local exchange carrier subject to the requirements 
of section 59.1 shall not be required to take any action that is 
economically unreasonable or that is contrary to the public interest.
    (b) An incumbent local exchange carrier subject to the requirements 
of section 59.1 may, but shall not be required to, enter into joint 
ownership or operation of public switched network infrastructure, 
technology, information and telecommunications facilities and functions 
and services with a qualifying carrier as a method of fulfilling its 
obligations under section 59.1.
    (c) An incumbent local exchange carrier subject to the requirements 
of section 59.1 shall not be treated by the Commission or any State as a 
common carrier for hire or as offering common carrier services with 
respect to any public switched network infrastructure, technology, 
information, or telecommunications facilities, or functions made 
available to a qualifying carrier in accordance with regulations issued 
pursuant to this section.
    (d) An incumbent local exchange carrier subject to the requirements 
of section 59.1 shall make such public switched network infrastructure, 
technology, information, and telecommunications facilities, or functions 
available to a qualifying carrier on just and reasonable terms and 
pursuant to conditions that permit such qualifying carrier to fully 
benefit from the economies of scale and scope of such local exchange 
carrier. An incumbent local exchange carrier that has entered into an 
infrastructure sharing agreement pursuant to section 59.1 must give 
notice to the qualifying carrier at least sixty days before terminating 
such infrastructure sharing agreement.
    (e) An incumbent local exchange carrier subject to the requirements 
of section 59.1 shall not be required to engage in any infrastructure 
sharing agreement for any services or access which are to be provided or 
offered to consumers by the qualifying carrier in such local exchange 
carrier's telephone exchange area.
    (f) An incumbent local exchange carrier subject to the requirements 
of section 59.1 shall file with the State, or, if the State has made no 
provision to accept such filings, with the Commission, for public 
inspection, any tariffs, contracts, or other arrangements showing the 
rates, terms, and conditions under which such carrier is making 
available public switched network infrastructure, technology, 
information and telecommunications facilities and functions pursuant to 
this part.



Sec. 59.3  Information concerning deployment of new services and equipment.

    An incumbent local exchange carrier subject to the requirements of 
section 59.1 that has entered into an infrastructure sharing agreement 
under section 59.1 shall provide to each party to such agreement timely 
information on the planned deployment of telecommunications services and 
equipment, including any software or upgrades of software integral to 
the use or operation of such telecommunications equipment.



Sec. 59.4  Definition of ``qualifying carrier''.

    For purposes of this part, the term ``qualifying carrier'' means a 
telecommunications carrier that:
    (a) Lacks economies of scale or scope; and
    (b) Offers telephone exchange service, exchange access, and any 
other service that is included in universal service, to all consumers 
without preference throughout the service area for which such carrier 
has been designated as an eligible telecommunications carrier under 
section 214(e) of 47 U.S.C.



PART 61--TARIFFS--Table of Contents




                           Subpart A--General

Sec.
61.1  Purpose and application.
61.2  General tariff requirements.
61.3  Definitions.
61.11-61.12  [Reserved]

                 Subpart B--Rules for Electronic Filing

61.13  Scope.
61.14  Method of filing publications.
61.15  Letters of transmittal and cover letters.
61.16  Base documents.

[[Page 165]]

61.17  Method of filing applications for special permission.

            Subpart C--General Rules for Nondominant Carriers

61.18  Scope.
61.19  Detariffing of international and interstate, domestic 
          interexchange services.
61.20  Method of filing publications.
61.21  Cover letters.
61.22  Composition of tariffs.
61.23  Notice requirements.
61.25  References to other instruments.
61.26  Tariffing of competitive interstate switched exchange access 
          services.

   Subpart D--General Tariff Rules for International Dominant Carriers

61.28  International dominant carrier tariff filing requirements.

             Subpart E--General Rules for Dominant Carriers

61.31  Scope.
61.32  Method of filing publications.
61.33  Letters of transmittal.
61.38  Supporting information to be submitted with letters of 
          transmittal.
61.39  Optional supporting information to be submitted with letters of 
          transmittal for Access Tariff filings effective on or after 
          April 1, 1989, by local exchange carriers serving 50,000 or 
          fewer access lines in a given study area that are described as 
          subset 3 carriers in Sec. 69.602.
61.40  Private line rate structure guidelines.
61.41  Price cap requirements generally.
61.42  Price cap baskets and service categories.
61.43  Annual price cap filings required.
61.44  [Reserved]
61.45  Adjustments to the PCI for Local Exchange Carriers.
61.46  Adjustments to the API.
61.47  Adjustments to the SBI; pricing bands.
61.48  Transition rules for price cap formula calculations.
61.49  Supporting information to be submitted with letters of 
          transmittal for tariffs of carriers subject to price cap 
          regulation.
61.50-61.51  [Reserved]
61.52  Form, size, type, legibility, etc.
61.54  Composition of tariffs.
61.55  Contract-based tariffs.
61.58  Notice requirements.
61.59  Effective period required before changes.

   Subpart F--Specific Rules for Tariff Publications of Dominant and 
                          Nondominant Carriers

61.66  Scope.
61.68  Special notations.
61.69  Rejection.
61.72  Public information requirements.
61.73  Duplication of rates or regulations.
61.74  References to other instruments.
61.83  Consecutive numbering.
61.86  Supplements.
61.87  Cancellation of tariffs.

                         Subpart G--Concurrences

61.131  Scope.
61.132  Method of filing concurrences.
61.133  Format of concurrences.
61.134  Concurrences for through services.
61.135  Concurrences for other purposes.
61.136  Revocation of concurrences.

             Subpart H--Applications for Special Permission

61.151  Scope.
61.152  Terms of applications and grants.
61.153  Method of filing applications.

   Subpart I--Adoption of Tariffs and Other Documents of Predecessor 
                                Carriers

61.171  Adoption notice.
61.172  Changes to be incorporated in tariffs of successor carrier.

                         Subpart J--Suspensions

61.191  Carrier to file supplement when notified of suspension.
61.192  Contents of supplement announcing suspension.
61.193  Vacation of suspension order; supplements announcing same; etc.

    Authority: Secs. 1, 4(i), 4(j), 201-205 and 403 of the 
Communications Act of 1934, as amended; 47 U.S.C. 151, 154(i), 154(j), 
201-205 and 403, unless otherwise noted.

    Source: 49 FR 40869, Oct. 18, 1984, unless otherwise noted.



                           Subpart A--General



Sec. 61.1  Purpose and application.

    (a) The purpose of this part is to prescribe the framework for the 
initial establishment of and subsequent revisions to tariff 
publications.
    (b) Tariff publications filed with the Commission must conform to 
the rules in this part and with Commission rules regarding the payment 
of statutory charges (see subpart G of part 1 of this title) and the use 
of FCC Registration Numbers (FRNs) (see subpart W of part 1 of this 
title). Failure to comply with any provisions of these rules may be

[[Page 166]]

grounds for rejection of the non-complying publication, a determination 
that it is unlawful or other action. Where an FRN has been omitted from 
a cover letter or transmittal accompanying a tariff publication filed 
under this part or the FRN included in that letter is invalid, the 
submitting carrier or carrier representative shall have ten (10) 
business days from the date of filing to amend the cover letter or 
transmittal to include a valid FRN. If within that ten (10) business day 
period, the carrier or carrier representative amends the cover letter or 
transmittal to include a valid FRN, that FRN shall be deemed to have 
been included in the letter as of its original filing date. If, after 
the expiration of the ten (10) business day period, the cover letter or 
transmittal has not been amended to include a valid FRN, the related 
tariff publication may be rejected if it has not yet become effective, 
declared unlawful if it has become effective, or subject to other 
action.
    (c) No carrier required to file tariffs may provide any interstate 
or foreign communication service until every tariff publication for such 
communication service is on file with the Commission and in effect.

[49 FR 40869, Oct. 18, 1984, as amended at 66 FR 47896, Sept. 14, 2001]



Sec. 61.2  General tariff requirements.

    (a) In order to remove all doubt as to their proper application, all 
tariff publications must contain clear and explicit explanatory 
statements regarding the rates and regulations.
    (b) Tariff publications must be delivered to the Commission free 
from all charges, including claims of postage.
    (c) Tariff publications will not be returned.

[64 FR 46586, Aug. 26, 1999]



Sec. 61.3  Definitions.

    (a) Act. The Communications Act of 1934 (48 Stat. 1004; 47 U.S.C. 
chapter 5), as amended.
    (b) Actual Price Index (API). An index of the level of aggregate 
rate element rates in a basket, which index is calculated pursunt to 
Sec. 61.46.
    (c) Association. This term has the meaning given it in Sec. 69.2(d).
    (d) Average Price Cap CMT Revenue per Line month. (1) Price Cap CMT 
Revenue (as defined in Sec. 61.3(cc)) per month as of July 1, 2000 
(adjusted to remove Universal Service Contributions assessed to local 
exchange carriers pursuant to Sec. 54.702 of this chapter) using 2000 
annual filing base period demand, divided by the 2000 annual filing base 
period demand. In filing entities with multiple study areas, if it 
becomes necessary to calculate the Average Price Cap CMT Revenue per 
Line month for a specific study area, then the Average Price Cap CMT 
Revenue per Line month for that study area is determined as follows, 
using base period demand revenues (adjusted to remove Universal Service 
Contributions assessed to Local Exchange Carriers pursuant to 
Sec. 54.702 of this chapter), Base Factor Portion (BFP) and 2000 annual 
filing base period lines:
    Average Price Cap CMT Revenue per Line Month in a study area = Price 
Cap CMT Revenue x (BFP in the study area / (BFP in the Filing Entity) /
(Lines in the study area.
    (2) Nothing in this definition precludes a price cap local exchange 
carrier from continuing to average rates across filing entities 
containing multiple study areas, where permitted under existing rules.
    (3) Average Price Cap CMT Revenues per Line month may be adjusted 
after July 1, 2000 to reflect exogenous costs pursuant to Sec. 61.45(d).
    (4) Average Price Cap CMT Revenues per Line month may also be 
adjusted pursuant to Sec. 61.45 (b)(1)(iii).
    (e) Average Traffic Sensitive Charge. (1) The Average Traffic 
Sensitive Charge (ATS charge) is the sum of the following two 
components:
    (i) The Local Switching (LS) component. The LS component will be 
calculated by dividing the proposed LS revenues (End Office Switch, LS 
trunk ports, Information Surcharge, and signalling transfer point (STP) 
port) by the base period LS minutes of use (MOUs); and
    (ii) The Transport component. The Transport component will be 
calculated by dividing the proposed Transport revenues (Switched Direct 
Trunk

[[Page 167]]

Transport, Signalling for Switched Direct Trunk Transport, Entrance 
Facilities for Switched Access traffic, Tandem Switched Transport, 
Signalling for Tandem Switching and residual per minute Transport 
Interconnection Charge (TIC) pursuant to Sec. 69.155 of this chapter) by 
price cap local exchange carrier only base period MOUs (including meet-
point billing arrangements for jointly-provided interstate access by a 
price cap local exchange carrier and any other local exchange carrier).
    (2) For the purposes of determining whether the ATS charge has 
reached the Target Rate as set forth in Sec. 61.3(qq), the calculations 
should include all the relevant revenues and minutes for services 
provided under generally available price cap tariffs.
    (f) Band. A zone of pricing flexibility for a service category, 
which zone is calculated pursuant to Sec. 61.47.
    (g) Base period. For carriers subject to Secs. 61.41 through 61.49, 
the 12-month period ending six months prior to the effective date of 
annual price cap tariffs. Base year or base period earnings shall 
exclude amounts associated with exogenous adjustments to the PCI for the 
lower formula adjustment mechanism permitted by Sec. 61.45(d)(1)(vii).
    (h) Basket. Any class or category of tariffed service or charge:
    (1) Which is established by the Commission pursuant to price cap 
regulation;
    (2) The rates of which are reflected in an Actual Price Index; and
    (3) The related revenues of which are reflected in a Price Cap 
Index.
    (i) Change in rate structure. A restructuring or other alteration of 
the rate components for an existing service.
    (j) Charges. The price for service based on tariffed rates.
    (k) Commercial contractor. The commercial firm to whom the 
Commission annually awards a contract to make copies of Commission 
records for sale to the public.
    (l) Commission. The Federal Communications Commission.
    (m) Concurring carrier. A carrier (other than a connecting carrier) 
subject to the Act which concurs in and assents to schedules of rates 
and regulations filed on its behalf by an issuing carrier or carriers.
    (n) Connecting carrier. A carrier engaged in interstate or foreign 
communication solely through physical connection with the facilities of 
another carrier not directly or indirectly controlling or controlled by, 
or under direct or indirect common control with, such carrier.
    (o) Contract-based tariff. A tariff based on a service contract 
entered into between a non-dominant carrier and a customer, or between a 
customer and a price cap local exchange carrier which has obtained 
permission to offer contract-based tariff services pursuant to part 69, 
subpart H, of this chapter.
    (p) Corrections. The remedy of errors in typing, spelling, or 
punctuation.
    (q) Dominant carrier. A carrier found by the Commission to have 
market power (i.e., power to control prices).
    (r) GDP Price Index (GDP-PI). The estimate of the Chain-Type Price 
Index for Gross Domestic Product published by the United States 
Department of Commerce, which the Commission designates by Order.
    (s) GNP Price Index (GNP-PI). The estimate of the ``Fixed-Weighted 
Price Index for Gross National Product, 1982 Weights'' published by the 
United States Department of Commerce, which the Commission designates by 
Order.
    (t) Issuing carrier. A carrier subject to the Act that publishes and 
files a tariff or tariffs with the Commission.
    (u) Line month. Line demand per month multiplied by twelve.
    (v) Local exchange carrier. Any person that is engaged in the 
provision of telephone exchange service or exchange access as defined in 
section 3(26) of the Act.
    (w) Mid-size company. All price cap local exchange carriers other 
than the Regional Bell Operating Companies and GTE.
    (x) New service offering. A tariff filing that provides for a class 
or sub-class of service not previously offered by the carrier involved 
and that enlarges the range of service options available to ratepayers.
    (y) Non-dominant carrier. A carrier not found to be dominant. The 
nondominant status of providers of international interexchange services 
for purposes of this subpart is not affected

[[Page 168]]

by a carrier's classification as dominant under Sec. 63.10 of this 
chapter.
    (aa) Price Cap Local Exchange Carrier. A local exchange carrier 
subject to regulation pursuant to Sec. 61.41 through 61.49.
    (bb) Pooled Local Switching Revenue. For certain qualified companies 
as set forth in Sec. 61.48 (m), is the amount of additional local 
switching reductions in the July 2000 Annual filing allowed to be moved 
and recovered in the CMT basket.
    (cc) Price Cap CMT Revenue. The maximum total revenue a filing 
entity would be permitted to receive from End User Common Line charges 
under Sec. 69.152 of this chapter, Presubscribed Interexchange Carrier 
charges (PICCs) under Sec. 69.153 of this chapter, Carrier Common Line 
charges under Sec. 69.154 of this chapter, and Marketing under 
Sec. 69.156 of this chapter, using Base Period lines. Price Cap CMT 
Revenue does not include the price cap local exchange carrier universal 
service contributions as of July 1, 2000. The Price Cap CMT revenue does 
not include the pooled local switching revenue outlined in paragraph 
(bb) of this section.
    (dd) Price Cap Index (PCI). An index of prices applying to each 
basket of services of each carrier subject to price cap regulation, and 
calculated pursuant to Sec. 61.45.
    (ee) Price cap regulation. A method of regulation of dominant 
carriers provided in Secs. 61.41 through 61.49.
    (ff) Price cap tariff filing. Any tariff filing involving a service 
subject to price cap regulation, or that requires calculations pursuant 
to Secs. 61.45, 61.46, or 61.47.
    (gg) [Reserved]
    (hh) Rate. The tariffed price per unit of service.
    (ii) Rate increase. Any change in a tariff which results in an 
increased rate or charge to any of the filing carrier's customers.
    (jj) Rate level change. A tariff change that only affects the actual 
rate associated with a rate element, and does not affect any tariff 
regulations or any other wording of tariff language.
    (kk) Regulations. The body of carrier prescribed rules in a tariff 
governing the offering of service in that tariff, including rules, 
practices, classifications, and definitions.
    (ll) Restructured service. An offering which represents the 
modification of a method of charging or provisioning a service; or the 
introduction of a new method of charging or provisioning that does not 
result in a net increase in options available to customers.
    (mm) Rural Company. A company that, as of December 31, 1999, was 
certified to the Commission as a rural telephone company.
    (nn) Service Band Index (SBI). An index of the level of aggregate 
rate element rates in a service category, which index is calculated 
pursuant to Sec. 61.47.
    (oo) Service category. Any group of rate elements subject to price 
cap regulation, which group is subject to a band.
    (pp) Supplement. A publication filed as part of a tariff for the 
purpose of suspending or canceling that tariff, or tariff publication 
and numbered independently from the tariff page series.
    (qq) Target Rate. The applicable Target Rate shall be defined as 
follows:
    (1) For regional Bell Operating Companies and GTE, $0.0055 per ATS 
minute of use;
    (2) For a holding company with a holding company average of less 
than 19 Switched Access End User Common Line charge lines per square 
mile served such company may elect to use a Target Rate of $0.0095 with 
respect to all exchanges owned by that holding company on July 1, 2000, 
or which that holding company is, as of April 1, 2000, under a binding 
and executed contract to purchase;
    (3) For other price cap local exchange carriers, $0.0065 per ATS 
minute of use.
    (rr) Tariff. Schedules of rates and regulations filed by common 
carriers.
    (ss) Tariff publication, or publication. A tariff, supplement, 
revised page, additional page, concurrence, notice of revocation, 
adoption notice, or any other schedule of rates or regulations filed by 
common carriers.
    (tt) Tariff year. The period from the day in a calendar year on 
which a carrier's annual access tariff filing is scheduled to become 
effective through the preceding day of the subsequent calendar year.

[[Page 169]]

    (uu) Text change. A change in the text of a tariff which does not 
result in a change in any rate or regulation.
    (vv) United States. The several States and Territories, the District 
of Columbia, and the possessions of the United States.
    (ww) Corridor service. ``Corridor service'' refers to interLATA 
services offered in the ``limited corridors'' established by the 
District Court in United States v. Western Electric Co., Inc., 569 F. 
Supp. 1057, 1107 (D.D.C. 1983).
    (xx) Toll dialing parity. ``Toll dialing parity'' exists when there 
is dialing parity, as defined in Sec. 51.5 of this chapter, for toll 
services.
    (yy) Loop-based services. Loop-based services are services that 
employ Subcategory 1.3 facilities, as defined in Sec. 36.154 of this 
chapter.
    (zz) Zone Average Revenue per Line. The amount calculated as 
follows:

Zone Average Revenue per Line = (25% * (Loop + Port)) + U (Uniform 
          revenue per line adjustment)
Where:

Loop = the price for unbundled loops in a UNE zone.
Port = the price for switch ports in that UNE zone.
U = [(Average Price Cap CMT Revenue per Line month in a study area * 
          price cap local exchange carrier Base Period Lines)-(25% * 
          [Sigma] (price cap local exchange carrier Base Period Lines in 
          a UNE Zone * ((Loop + Port ) for all zones)))] / price cap 
          local exchange carrier Base Period Lines in a study area.

[54 FR 19840, May 8, 1989, as amended at 55 FR 42382, Oct. 19, 1990; 56 
FR 55239, Oct. 25, 1991; 58 FR 36147, July 6, 1993; 59 FR 10301, Mar. 4, 
1994; 60 FR 19527, Apr. 19, 1995; 60 FR 20052, Apr. 24, 1995; 61 FR 
59366, Nov. 22, 1996; 62 FR 5777, Feb. 7, 1997; 62 FR 31930, June 11, 
1997; 64 FR 46586, Aug. 26, 1999; 64 FR 51265, Sept. 22, 1999; 65 FR 
38694, June 21, 2000; 65 FR 57740, 57741, Sept. 26, 2000; 66 FR 16881, 
Mar. 28, 2001]



Secs. 61.11-61.12  [Reserved]



                 Subpart B--Rules for Electronic Filing

    Source: 63 FR 35540, June 30, 1998, unless otherwise noted.



Sec. 61.13  Scope.

    (a) This applies to all tariff publications of carriers required to 
file tariff publications electronically, and any tariff publication that 
a carrier chooses to file electronically.
    (b) All incumbent local exchange carriers are required to file 
tariff publications electronically.
    (c) All tariff publications shall be filed in a manner that is 
compatible and consistent with the technical requirements of the 
Electronic Tariff Filing System.



Sec. 61.14  Method of filing publications.

    (a) Publications filed electronically must be addressed to 
``Secretary, Federal Communications Commission, Washington, DC 20554.'' 
The Electronic Tariff Filing System will accept filings 24 hours a day, 
seven days a week. The official filing date of a publication received by 
the Electronic Tariff Filing System will be determined by the date and 
time the transmission ends. If the transmission ends after the close of 
a business day, as that term is defined in Sec. 1.4(e)(2) of this 
Chapter, the filing will be date and time stamped as of the opening of 
the next business day.
    (b)(1) In addition, except for issuing carriers filing tariffing 
fees electronically, for all tariff publications requiring fees as set 
forth in part 1, subpart G of this chapter, issuing carriers must submit 
the original of the cover letter (without attachments), FCC Form 159, 
and the appropriate fee to the Mellon Bank, Pittsburgh, PA at the 
address set forth in Sec. 1.1105 of this chapter.
    (2) Issuing carriers filing tariffing fees electronically must 
submit the Form 159. The issuing carrier may submit the Form 159 in 
either of the methods set forth in paragraphs (b)(2)(i) or (b)(2)(ii) of 
this section:
    (i) Issuing carriers submitting tariffing fees electronically may 
submit a paper copy of the Form 159, and the original transmittal letter 
to the Secretary of the Commission in lieu of the Mellon Bank, or;
    (ii) Issuing carriers submitting tariffing fees electronically may 
submit a copy of the Form 159 electronically as an associated document 
with their tariff filing publication. In this instance issuing carriers 
must provide an electronic signature on their letter of transmittal in 
accordance with section 1.52 of this chapter.

[[Page 170]]

    (iii) Regardless of whether the Form 159 is submitted pursuant to 
paragraph (b)(2)(i) or (b)(2)(ii) of this section, the Form 159 should 
display the Electronic Audit Code in the box in the upper left hand 
corner marked ``reserved.'' Issuing carriers should submit these fee 
materials on the same date as the submission in paragraph (a) of this 
section.
    (c) Carriers that are required to file publications electronically 
may not file those publications on paper or other media unless 
specifically required to do so by the Commission.
    (d) Carriers that are required to file publications electronically 
need only transmit one set of files to the Commission. No other copies 
to any other party are required.
    (e) Carriers that are required to file publications electronically 
must continue to comply with the format requirements set forth in part 
61.

[63 FR 35540, June 30, 1998, as amended at 64 FR 46586, Aug. 26, 1999]



Sec. 61.15  Letters of transmittal and cover letters.

    (a) All tariff publications filed with the Commission electronically 
must be accompanied by a letter of transmittal. All letters of 
transmittal must:
    (1) Concisely explain the nature and purpose of the filing;
    (2) Specify whether supporting information is required for the new 
tariff or tariff revision, and specify the Commission rule or rules 
governing the supporting information requirements for that filing;
    (3) Contain a statement indicating the date and method of filing of 
the original of the transmittal as required by Sec. 61.14(b);
    (4) Include the FCC Registration Number (FRN) of the carrier(s) on 
whose behalf the cover letter is submitted. See subpart W of part 1 of 
this title.
    (b) Carriers filing tariffs electronically pursuant to the notice 
requirements of section 204(a)(3) of the Communications Act shall 
display prominently, in the upper right hand corner of the letter of 
transmittal, a statement that the filing is made pursuant to that 
section and whether the tariff is filed on 7 or 15 days notice.
    (c) Any carrier filing a new or revised tariff made on 15 days' 
notice or less shall include in the letter of transmittal the name, room 
number, street address, telephone number, and facsimile number of the 
individual designated by the filing carrier to receive personal or 
facsimile service of petitions against the filing as required under 
Sec. 1.773(a)(4) of this chapter.
    (d) The letter of transmittal must specifically reference by number 
any special permission necessary to implement the tariff publication. 
Special permission must be granted prior to the filing of the tariff 
publication and may not be requested in the transmittal letter.
    (e) The letter of transmittal must be substantially in the format 
established in Secs. 61.33(g) and 61.33(h)(1).
    (f) All submissions of documents other than a new tariff or 
revisions to an existing tariff, such as Base Documents or Tariff Review 
Plans, must be accompanied by a cover letter that concisely explains the 
nature and purpose of the filing. Publications submitted under this 
paragraph are not required to submit a tariffing fee.

[63 FR 35540, June 30, 1998, as amended at 66 FR 47896, Sept. 14, 2001]



Sec. 61.16  Base documents.

    (a) The Base Document is a complete tariff which incorporates all 
effective revisions, as of the last day of the preceding month. The Base 
Document should be submitted with a cover letter as specified in 
Sec. 61.15(f) of this part and identified as the Monthly Updated Base 
Document.
    (b) Initially, carriers that currently have tariffs on file with the 
commission must file a Base Document within five days of the initiation 
of mandatory electronic filing.
    (c) Subsequently, if there have been revisions that became effective 
up to and including the last day of the preceding month, a new Base 
Document must be submitted within the first five business days of the 
current month that will incorporate those revisions.

[[Page 171]]



Sec. 61.17  Method of filing applications for special permission.

    (a) An application for special permission filed electronically must 
be addressed to ``Secretary, Federal Communications Commission, 
Washington, DC 20554.'' The Electronic Tariff Filing System will accept 
filings 24 hours a day, seven days a week. The official filing date of a 
publication received by the Electronic Tariff Filing System will be 
determined by the date and time the transmission ends. If the 
transmission ends after the close of a business day, as that term is 
defined in Sec. 1.4(e)(2) of this chapter, the filing will be date and 
time stamped as of the opening of the next business day.
    (b) In addition, except for issuing carriers filing tariffing fees 
electronically, for special permission applications requiring fees as 
set forth in part 1, subpart G of this chapter, issuing carriers must 
submit the original of the application letter (without attachments), FCC 
Form 159, and the appropriate fee to the Mellon Bank, Pittsburgh, PA, at 
the address set forth in Sec. 1.1105 of this chapter. Issuing carriers 
submitting tariffing fees electronically should submit a copy of the 
Form 159 and the original application letter to the Secretary of the 
Commission in lieu of the Mellon Bank. The Form 159 should display the 
Electronic Audit Code in the box in the upper left hand corner marked 
``reserved''. Issuing carriers should submit these fee materials on the 
same day as the transmission in paragraph (a) of this section.
    (c) In addition, if a carrier applies for special permission to 
revise joint tariffs, the application must state that it is filed on 
behalf of all carriers participating in the affected service. 
Applications must be numbered consecutively in a series separate from 
FCC tariff numbers, bear the signature of the officer or agent of the 
carrier, and be in the following format:

Application No. ----------
(Date)----------
Secretary
Federal Communications Commission
Washington, DC 20554.

    Attention: Wireline Competition Bureau (here provide the statements 
required by section 61.152).

(Exact name of carrier)----------
(Name of officer or agent)----------
(Title of officer or agent)----------

[63 FR 35540, June 30, 1998, as amended at 64 FR 46586, Aug. 26, 1999; 
67 FR 13228, Mar. 21, 2002]



            Subpart C--General Rules for Nondominant Carriers



Sec. 61.18  Scope.

    The rules in this subpart apply to all nondominant carriers.

[64 FR 46587, Aug. 26, 1999]



Sec. 61.19  Detariffing of international and interstate, domestic interexchange services.

    (a) Except as otherwise provided in paragraphs (b) through (e) of 
this section, or by Commission order, carriers that are nondominant in 
the provision of international and interstate, domestic interexchange 
services shall not file tariffs for such services.
    (b) Carriers that are nondominant in the provision of international 
and domestic, interstate, interexchange services are permitted to file 
tariffs for dial-around 1+ services. For the purposes of this paragraph, 
dial-around 1+ calls are those calls made by accessing the interexchange 
carrier through the use of that carrier's carrier access code.
    (c) Carriers that are nondominant in the provision of international 
and domestic, interstate, interexchange services are permitted to file a 
tariff for such services applicable to those customers who contact the 
local exchange carrier to designate an interexchange carrier or to 
initiate a change with respect to their primary interexchange carrier. 
Such tariff will enable the interexchange carrier to provide service to 
the customer until the interexchange carrier and the customer consummate 
a written agreement, but in no event shall the interexchange carrier 
provide service to its customer pursuant to such tariff for more than 45 
days.
    (d) Carriers that are nondominant in the provision of international 
inbound collect calls to the United States are permitted to file a 
tariff for such services.

[[Page 172]]

    (e) Carriers that are nondominant in the provision of ``on-demand'' 
Mobile Satellite Services are permitted to file a tariff for such 
services applicable to those customers that have not entered into pre-
existing service contracts designating a specific provider for such 
services.

[66 FR 16881, Mar. 28, 2001]



Sec. 61.20  Method of filing publications.

    (a) Publications sent for filing must be addressed to ''Secretary, 
Federal Communications Commission, Washington, DC 20554.`` The date on 
which the publication is received by the Secretary of the Commission (or 
the Mail Room where submitted by mail) is considered the official filing 
date.
    (b)(1) In addition, except for issuing carriers filing tariffing 
fees electronically, for all tariff publications requiring fees as set 
forth in part 1, subpart G of this chapter, issuing carriers must submit 
the original of the cover letter (without attachments), FCC Form 159, 
and the appropriate fee to the Mellon Bank, Pittsburgh, PA at the 
address set forth in Sec. 1.1105 of this chapter. Issuing carriers 
submitting tariffing fees electronically should submit the Form 159 and 
the original cover letter to the Secretary of the Commission in lieu of 
the Mellon Bank. The Form 159 should display the Electronic Audit Code 
in the box in the upper left hand corner marked ``reserved.'' Issuing 
carriers should submit these fee materials on the same date as the 
submission in paragraph (a) of this section.
    (2) International carriers must certify in their original cover 
letter that they are authorized under Section 214 of the Communications 
Act of 1934, as amended, to provide service, and reference the FCC file 
number of that authorization.
    (c) In addition to the requirements set forth in paragraphs (a) and 
(b) of this section, the issuing carrier must send a copy of the cover 
letter with one 3\1/2\ inch diskette or CD-ROM containing both the 
complete tariff and any attachments, as appropriate, to the Secretary, 
Federal Communications Commission. In addition, the issuing carrier must 
send one diskette or CD-ROM of the complete tariff and a copy of the 
cover letter to the commercial contractor (at its office on Commission 
premises), and to the Chief, Tariff and Pricing Analysis Branch. The 
latter should be clearly labeled as the ``Public Reference Copy.'' The 
issuing carrier should file the copies required by this paragraph so 
they will be received on the same date as the filings in paragraph (a) 
of this section. In cases where the a single diskette or CD-ROM does not 
provide sufficient capacity for the carrier's entire tariff filing, the 
issuing carrier may submit two or more diskettes, or two or more CD-
ROMs, as necessary.

[58 FR 44460, Aug. 23, 1993, as amended at 61 FR 15726, Apr. 9, 1996. 
Redesignated at 61 FR 59366, Nov. 22, 1996, and further redesignated and 
amended at 64 FR 46587, Aug. 26, 1999]



Sec. 61.21  Cover letters.

    (a)(1) Except as specified in Sec. 61.32(b), all publications filed 
with the Commission must be accompanied by a cover letter, 8.5 by 11 
inches (21.6 cm x 27.9 cm) in size, and must be plainly printed in black 
ink. All transmittal letters should briefly explain the nature and 
purpose of the filing and indicate the date and method of filing of the 
original cover letter, as required by Sec. 61.20(b)(1) of this part.
    (2) International carriers must certify that they are authorized 
under Section 214 of the Communications Act of 1934, as amended, to 
provide service, and reference the FCC file number of that 
authorization.
    (3) All cover letters and letters of transmittal shall include the 
FCC Registration Number (FRN) of the issuing carrier(s) on whose behalf 
the letter is submitted. See part 1, subpart W of this chapter.
    (b) A separate cover letter may accompany each publication, or an 
issuing carrier may file as many publications as desired with one cover 
letter.

    Note: If a receipt for accompanying publication is desired, the 
cover letter must be sent in duplicate. One copy showing the date of the 
receipt by the Commission will then be returned to the sender.

[58 FR 44460, Aug. 23, 1993, as amended at 61 FR 15726, Apr. 9, 1996. 
Redesignated at 61 FR 59366, Nov. 22, 1996, and further redesignated and 
amended at 64 FR 46587, Aug. 26, 1999; 66 FR 47896, Sept. 14, 2001]

[[Page 173]]



Sec. 61.22  Composition of tariffs.

    (a) The tariff must be submitted on a 3\1/2\ inch (8.89 cm) 
diskette, or a 5 inch CD-ROM, formatted in an IBM-compatible form using 
either WordPerfect 5.1, Microsoft Word 6, or Microsoft Word 97 software. 
No diskettes shall contain more than one tariff. The diskette or CD-ROM 
must be submitted in ``read only'' mode. The diskette or CD-ROM must be 
clearly labelled with the carrier's name, Tariff Number, software used, 
and the date of submission. When multiple diskettes or CD-ROMs are 
submitted, the issuing carrier shall clearly label each diskette in the 
following format: ``1 of --'', ``2 of --'', etc.
    (b) The tariff must contain the carrier's name, the international 
Section 214 authorization FCC file number (when applicable), and the 
information required by Section 203 of the Act.
    (c)(1) Changes to a tariff must be made by refiling the entire 
tariff on a new diskette, with the changed material included. The 
carrier must indicate in the tariff what changes have been made.
    (2) Any issuing carrier submitting an individual tariff that 
requires ten or more diskettes that wishes to revise its tariff is 
permitted to do so by filing a diskette containing only those pages on 
which the changed material is located. Any such carrier shall file a 
current effective version of its entire tariff on the first business day 
of each month. For purposes of this paragraph, ``business day'' is 
defined in Sec. 1.4(e)(2) of this chapter.
    (d) Domestic and international nondominant carriers subject to the 
provisions of this section are not subject to the tariff filing 
requirements of Sec. 61.54.
    (e)(1) For contract-based tariffs defined in Sec. 61.3(m), a 
separate letter of transmittal may accompany each tariff filed, or the 
above format may be modified for filing as many publications as may be 
desired with one transmittal letter. The transmittals must be numbered 
in a series separate from transmittals for non-contract tariff filing. 
Numbers must appear on the face of the transmittal and be in the form of 
``CTT No. ------'', using CTT as an abbreviation for contract-based 
tariff transmittals, or some similar form that indicates that the 
transmittal is a contract-based tariff transmittal. Contract-based 
tariffs must also be numbered in a series separate from non-contract-
based tariffs. Numbers must be in the form of ``CT No. ------'', using 
CT as an abbreviation for contract-based tariffs, or some similar form 
that indicates that the tariff is a contract-based tariff. Each 
contract-based tariff must be assigned a separate number. Transmittals 
and tariffs subject to this paragraph shall be filed beginning with the 
number ``1'' and shall be numbered consecutively.
    (2) Composition of contract-based tariffs shall comply with 
Secs. 61.54 (b) through (i).
    (3) Contract-based tariffs shall include the following:
    (i) The term of the contract, including any renewal options;
    (ii) A brief description of each of the services provided under the 
contract;
    (iii) Minimum volume commitments for each service;
    (iv) The contract price for each service or services at the volume 
levels committed to by the customers;
    (v) A general description of any volume discounts built into the 
contract rate structure; and
    (vi) A general description of other classifications, practices and 
regulations affecting the contract rate.

[58 FR 44460, Aug. 23, 1993; 58 FR 48323, Sept. 15, 1993, as amended at 
61 FR 15727, Apr. 9, 1996. Redesignated at 61 FR 59366, Nov. 22, 1996, 
and further redesignated and amended at 64 FR 46587, Aug. 26, 1999]



Sec. 61.23  Notice requirements.

    (a) Every proposed tariff filing must bear an effective date and, 
except as otherwise provided by regulation, special permission, or 
Commission order, must be made on at least the number of days notice 
specified in this section.
    (b) Notice is accomplished by filing the proposed tariff changes 
with the Commission. Any period of notice specified in this section 
begins on and includes the date the tariff is received by the 
Commission, but does not include the effective date. In computing the 
notice period required, all days including Sundays and holidays must be 
counted.
    (c) All tariff filings of domestic and international non-dominant 
carriers

[[Page 174]]

must be made on at least one day's notice.

[58 FR 44460, Aug. 23, 1993, as amended at 61 FR 15727, Apr. 9, 1996. 
Redesignated at 61 FR 59366, Nov. 22, 1996, and further redesignated and 
amended at 64 FR 46587, 46588, Aug. 26, 1999]



Sec. 61.25  References to other instruments.

    In addition to the cross-references permitted pursuant to 
Sec. 61.74, a non-dominant carrier may cross-reference in its tariff 
publication only the rate provisions of another carrier's FCC tariff 
publication, provided that the following conditions are met:
    (a) The tariff being cross-referenced must be on file with the 
Commission and in effect;
    (b) The issuing carrier must specifically identify in its tariff the 
cross-referenced tariff by Carrier Name and FCC Tariff Number;
    (c) The issuing carrier must specifically identify in its tariff the 
rates being cross-referenced so as to leave no doubt as to the exact 
rates that will apply, including but not limited to any applicable 
credits, discounts, promotions; and
    (d) The issuing carrier must keep its cross-references current.

[64 FR 46588, Aug. 26, 1999]



Sec. 61.26  Tariffing of competitive interstate switched exchange access services.

    (a) Definitions. For purposes of this section 61.26, the following 
definitions shall apply:
    (1) CLEC shall mean a provider of interstate exchange access 
services that does not fall within the definition of ``incumbent local 
exchange carrier'' in 47 U.S.C. 251(h).
    (2) Competing ILEC shall mean the incumbent local exchange carrier, 
as defined in 47 U.S.C. 251(h), that would provide interstate exchange 
access service to a particular end user if that end user were not served 
by the CLEC.
    (3) Interstate switched exchange access services shall include the 
functional equivalent of the ILEC interstate exchange access services 
typically associated with following rate elements: carrier common line 
(originating); carrier common line (terminating); local end office 
switching; interconnection charge; information surcharge; tandem 
switched transport termination (fixed); tandem switched transport 
facility (per mile); tandem switching.
    (4) Non-rural ILEC shall mean an incumbent local exchange carrier 
that is not a rural telephone company under 47 U.S.C. 153(37).
    (5) The rate for interstate switched exchange access services shall 
mean the composite, per-minute rate for these services, including all 
applicable fixed and traffic-sensitive charges.
    (6) Rural CLEC shall mean a CLEC that does not serve (i.e., 
terminate traffic to or originate traffic from) any end users located 
within either:
    (i) Any incorporated place of 50,000 inhabitants or more, based on 
the most recently available population statistics of the Census Bureau 
or
    (ii) An urbanized area, as defined by the Census Bureau.
    (b) Except as provided in paragraphs (c) and (e) of this section, a 
CLEC shall not file a tariff for its interstate switched exchange access 
services that prices those services above the higher of:
    (1) The rate charged for such services by the competing ILEC or
    (2) The lower of:
    (i) The benchmark rate described in paragraph (c) of this section or
    (ii) The lowest rate that the CLEC has tariffed for its interstate 
exchange access services, within the six months preceding June 20, 2001.
    (c) From June 20, 2001 until June 20, 2002, the benchmark rate for a 
CLEC's interstate switched exchange access services will be $0.025 per 
minute. From June 20, 2002 until June 20, 2003, the benchmark rate for a 
CLEC's interstate switched exchange access services will be $0.018 per 
minute. From June 20, 2003 until June 21, 2004, the benchmark rate for a 
CLEC's interstate switched exchange access services will be $0.012 per 
minute. After June 21, 2004, the benchmark rate for a CLEC's interstate 
switched exchange access services will be the rate charged for similar 
services by the competing ILEC, provided, however, that the

[[Page 175]]

benchmark rate for a CLEC's interstate switched exchange access services 
will not move to bill-and-keep, if at all, until June 20, 2005.
    (d) Notwithstanding paragraphs (b) and (c) of this section, in the 
event that, after June 20, 2001, a CLEC begins serving end users in a 
metropolitan statistical area (MSA) where it has not previously served 
end users, the CLEC shall not file a tariff for its interstate exchange 
access services in that MSA that prices those services above the rate 
charged for such services by the competing ILEC.
    (e) Rural exemption. Notwithstanding paragraphs (b) through (3) of 
this section, a rural CLEC competing with a non-rural ILEC shall not 
file a tariff for its interstate exchange access services that prices 
those services above the rate prescribed in the NECA access tariff, 
assuming the highest rate band for local switching and the transport 
interconnection charge. If the competing ILEC is subject to the 
Commission's CALLS Order, 65 FR 38684, June 21, 2000, this rate shall be 
reduced by the NECA tariff's carrier common line charge.

[66 FR 27900, May 21, 2001; 66 FR 28774, May 24, 2001]



   Subpart D--General Tariff Rules for International Dominant Carriers



Sec. 61.28  International dominant carrier tariff filing requirements.

    (a) Any carrier classified as dominant for the provision of 
particular international communications services on a particular route 
for any reason other than a foreign carrier affiliation under Sec. 63.10 
of this chapter shall file tariffs for those services pursuant to the 
notice and cost support requirements for tariff filings of dominant 
domestic carriers, as set forth in subpart E of this part.
    (b) Other than the notice and cost support requirements set forth in 
paragraph (a) of this section, all tariff filing requirements applicable 
to all carriers classified as dominant for the provision of particular 
international communications services on a particular route for any 
reason other than a foreign carrier affiliation pursuant to Sec. 63.10 
of this chapter are set forth in subpart C of this part.

[66 FR 16881, Mar. 28, 2001]



             Subpart E--General Rules for Dominant Carriers



Sec. 61.31  Scope.

    The rules in this subpart apply to all dominant carriers.

[64 FR 46588, Aug. 26, 1999]



Sec. 61.32  Method of filing publications.

    (a) Publications sent for filing must be addressed to ``Secretary, 
Federal Communications Commission, Washington, DC 20554.'' The date on 
which the publication is received by the Secretary of the Commission (or 
the Mail Room where submitted by mail) is considered the official filing 
date.
    (b) In addition, except for issuing carriers filing tariffing fees 
electronically, for all tariff publications requiring fees as set forth 
in part 1, subpart G of this chapter, issuing carriers must submit the 
original of the transmittal letter (without attachments), FCC Form 159, 
and the appropriate fee to the Mellon Bank, Pittsburgh, PA, at the 
address set forth in Sec. 1.1105 of this chapter. Issuing carriers 
submitting tariffing fees electronically should submit the Form 159 and 
the original cover letter to the Secretary of the Commission in lieu of 
the Mellon Bank. The Form 159 should display the Electronic Audit Code 
in the box in the upper left hand corner marked ``reserved.'' Issuing 
carriers should submit these fee materials on the same date as the 
submission in paragraph (a) of this section.
    (c) In addition to the requirements set forth in paragraphs (a) and 
(b) of this section, the issuing carrier must send a copy of the 
transmittal letter with two copies of the proposed tariff pages and all 
attachments, including the supporting information specified in 
Sec. 61.38 or Sec. 61.49, as appropriate, to the Secretary, Federal 
Communications Commission. In addition, the issuing carrier must send a 
copy of the publication, supporting information specified in Sec. 61.38 
or Sec. 61.49, as appropriate, and transmittal letter to the commercial 
contractor (at its office on Commission premises), and to the Chief,

[[Page 176]]

Pricing Policy Division. The latter should be clearly labeled as the 
``Public Reference Copy.'' The copies of supporting information required 
here are in addition to those required by Sec. 61.38(c). The issuing 
carrier must file the copies required by this paragraph so they will be 
received on the same date as the filings in paragraph (a).

[55 FR 19173, May 8, 1990, as amended at 64 FR 46588, 46593, Aug. 26, 
1999; 67 FR 13228, Mar. 21, 2002]



Sec. 61.33  Letters of transmittal.

    (a) Except as specified in Sec. 61.32(b), all publications filed on 
paper with the Commission must be numbered consecutively by the issuing 
carrier beginning with Number 1, and must be accompanied by a letter of 
transmittal, A4 (21 cm x 29.7 cm) or 8\1/2\ by 11 inches (21.6 cm x 27.9 
cm) in size. All letters of transmittal must
    (1) Concisely explain the nature and purpose of the filing;
    (2) Specify whether supporting information under Sec. 61.38 is 
required;
    (3) State whether copies have been delivered to the Commercial 
Contractor and the Chief, Pricing Policy Division.
    (4) Contain a statement indicating the date and method of filing of 
the original of the transmittal letter as required by Sec. 61.32(b), and 
the date and method of filing the copies as required by Sec. 61.32 (a) 
and (c); and
    (5) Include the FCC Registration Number (FRN) of the carrier(s) on 
whose behalf the letter is submitted. See part 1, subpart W of this 
chapter.
    (b) In addition to the requirements set forth in paragraph (a) of 
this section, any local exchange carrier choosing to file an Access 
Tariff under Sec. 61.39 must include in the transmittal:
    (1) A summary of the filing's basic rates, terms and conditions;
    (2) A statement concerning whether any prior Commission facility 
authorization necessary to the implementation of the tariff has been 
obtained; and
    (3) A statement that the filing is made pursuant to Sec. 61.39.
    (c) In addition to the requirements set forth in paragraph (a) of 
this section, any carrier filing a price cap tariff must include in the 
letter of transmittal a statement that the filing is made pursuant to 
Sec. 61.49.
    (d) Tariffs filed pursuant to section 204(a)(3) of the 
Communications Act shall display prominently in the upper right hand 
corner of the letter of transmittal a statement that the filing is made 
pursuant to that section and whether it is being filed on 7- or 15-days' 
notice.
    (e) In addition to the requirements set forth in paragraph (a) of 
this section, any carrier filing a new or revised tariff made on 15 
days' notice or less shall include in the letter of transmittal, the 
name, room number, street address, telephone number, and facsimile 
number of the individual designated by the filing carrier to receive 
personal or facsimile service of petitions against the filing as 
required under Sec. 1.773(a)(4) of this chapter.
    (f) In addition to the requirements set forth in paragraphs (a), 
(b), and (c) of this section, the letter of transmittal must 
specifically reference by number any special permission necessary to 
implement the tariff publication. Special permission must be granted 
prior to the filing of the tariff publication, and may not be requested 
in the transmittal letter.
    (g) The letter of transmittal must be substantially in the following 
format:
________________________________________________________________________
(Exact name of carrier in full)
________________________________________________________________________
(Post Office Address)
________________________________________________________________________
(Date)
________________________________________________________________________
Transmittal No.
    Secretary, Federal Communications Commission; Washington, DC 20554
    Attention: Wireline Competition Bureau
    The accompanying tariff (or other publication) issued by ------, and 
bearing FCC No. ------, effective ------, 20 --, is sent to you for 
filing in compliance with the requirements of the Communications Act of 
1934, as amended. (Here give the additional information required.)

________________________________________________________________________
(Name of issuing officer or agent)
________________________________________________________________________
(Title)
    (h)(1) A separate letter of transmittal may accompany each 
publication, or the above format may be modified to provide for filing 
as many publications as desired with one transmittal letter.
    (2) [Reserved]


[[Page 177]]


    Note to Sec. 61.33: If a receipt for accompanying publication is 
desired, the letter of transmittal must be sent in duplicate. One copy 
showing the date of receipt by the Commission will then be returned to 
the sender.

[55 FR 19173, May 8, 1990, as amended by 56 FR 55239, Oct. 25, 1991; 58 
FR 17530, Apr. 5, 1993; 58 FR 44906, Aug. 25, 1993; 62 FR 5777, Feb. 7, 
1997; 64 FR 46588, 46593, Aug. 26, 1999; 66 FR 47896, Sept. 14, 2001; 67 
FR 13228, Mar. 21, 2002]



Sec. 61.38  Supporting information to be submitted with letters of transmittal.

    (a) Scope. This section applies to dominant carriers whose gross 
annual revenues exceed $500,000 for the most recent 12 month period of 
operations or are estimated to exceed $500,000 for a representative 12 
month period. Local exchange carriers serving 50,000 or fewer access 
lines in a given study area that are described as subset 3 carriers in 
Sec. 69.602 of this chapter may submit Access Tariff filings for that 
study area pursuant to either this section or Sec. 61.39. However, the 
Commission may require any carrier to submit such information as may be 
necessary for a review of a tariff filing. This section (other than the 
preceding sentence of this paragraph) shall not apply to tariff filings 
proposing rates for services identified in Sec. 61.42 (d), (e), and (g).
    (b) Explanation and data supporting either changes or new tariff 
offerings. The material to be submitted for a tariff change which 
affects rates or charges or for a tariff offering a new service, must 
include an explanation of the changed or new matter, the reasons for the 
filing, the basis of ratemaking employed, and economic information to 
support the changed or new matter.
    (1) For a tariff change the carrier must submit the following, 
including complete explanations of the bases for the estimates.
    (i) A cost of service study for all elements for the most recent 12 
month period;
    (ii) A study containing a projection of costs for a representative 
12 month period;
    (iii) Estimates of the effect of the changed matter on the traffic 
and revenues from the service to which the changed matter applies, the 
carrier's other service classifications, and the carrier's overall 
traffic and revenues. These estimates must include the projected effects 
on the traffic and revenues for the same representative 12 month period 
used in (ii) above.
    (2) For a tariff filing offering a new service, the carrier must 
submit the following, including complete explanations of the bases for 
the estimates.
    (i) A study containing a projection of costs for a representative 12 
month period; and
    (ii) Estimates of the effect of the new matter on the traffic and 
revenues from the service to which the new matter applies, the carrier's 
other service classifications, and the carrier's overall traffic and 
revenues. These estimates must include the projected effects on the 
traffic and revenues for the same representative 12 month period used in 
paragraph (b)(2)(i) of this section.
    (3) [Reserved]
    (4) For a tariff that introduces a system of density pricing zones, 
as described in Sec. 69.123 of this chapter, the carrier must, before 
filing its tariff, submit a density pricing zone plan including, inter 
alia, documentation sufficient to establish that the system of zones 
reasonably reflects cost-related characteristics, such as the density of 
total interstate traffic in central offices located in the respective 
zones, and receive approval of its proposed plan.
    (c) Working papers and statistical data. (1) Concurrently with the 
filing of any tariff change or tariff filing for a service not 
previously offered, the Chief, Pricing Policy Division must be provided 
two sets of working papers containing the information underlying the 
data supplied in response to paragraph (b) of this section, and a clear 
explanation of how the working papers relate to that information.
    (2) All statistical studies must be submitted and supported in the 
form prescribed in Sec. 1.363 of the Commission's Rules.
    (d) Form and content of additional material to be submitted with 
certain rate increases. In the circumstances set out in paragraphs 
(d)(1) and (2) of this section, the filing carrier must submit all 
additional cost, marketing and other data

[[Page 178]]

underlying the working papers to justify a proposed rate increase. The 
carrier must submit this information in suitable form to serve as the 
carrier's direct case in the event the rate increase is set by the 
Commission for investigation.
    (1) Rate increases affecting single services or tariffed items.
    (i) A rate increase in any service or tariffed item which results in 
more than $1 million in additional annual revenues, calculated on the 
basis of existing quantities in service, without regard to the 
percentage increase in such revenues; or
    (ii) A single rate increase in any service or tariffed item, or 
successive rate increases in the same service or tariffed item within a 
12 month period, either of which results in:
    (A) At least a 10 percent increase in annual revenues from that 
service or tariffed item, and
    (B) At least $100,000 in additional annual revenues, both calculated 
on the basis of existing quantities in service.
    (2) Rate increases affecting more than one service or tariffed item.
    (i) A general rate increase in more than one service or tariffed 
item occurring at one time, which results in more than $1 million in 
additional revenues calculated on the basis of existing quantities in 
service, without regard to the percentage increase in such revenues; or
    (ii) A general rate increase in more than one service or tariffed 
item occurring at one time, or successive general rate increases in the 
same services or tariffed items occurring within a 12 month period, 
either of which results in:
    (A) At least a 10 percent increase in annual revenues from those 
services or tariffed items, and
    (B) At least $100,000 in additional annual revenues, both calculated 
on the basis of existing quantities in service.
    (e) Submission of explanation and data by connecting carriers. If 
the changed or new matter is being filed by the issuing carrier at the 
request of a connecting carrier, the connecting carrier must provide the 
data required by paragraphs (b) and (c) of this section on the date the 
issuing carrier files the tariff matter with the Commission.
    (f) Copies of explanation and data to customers. Concurrently with 
the filing of any rate for special construction (or special assembly 
equipment and arrangements) developed on the basis of estimated costs, 
the offering carrier must transmit to the customer a copy of the 
explanation and data required by paragraphs (b) and (c) of this section.
    (g) On each page of cost support material submitted pursuant to this 
section, the carrier shall indicate the transmittal number under which 
that page was submitted.

[49 FR 40869, Oct. 18, 1984, as amended at 53 FR 36289, Sept. 19, 1988; 
54 FR 19841, May 8, 1989; 55 FR 42382, Oct. 19, 1990; 56 FR 55239, Oct. 
25, 1991; 57 FR 54330, Nov. 18, 1992; 58 FR 36147, July 6, 1993; 58 FR 
48762, Sept. 17, 1993; 64 FR 46588, 46593, Aug. 26, 1999; 67 FR 13228, 
Mar. 21, 2002]



Sec. 61.39  Optional supporting information to be submitted with letters 

of transmittal for Access Tariff filings effective on or after April 1, 1989, by local 
          exchange carriers serving 50,000 or fewer access lines in a 
          given study area that are described as subset 3 carriers in 
          Sec. 69.602.

    (a) Scope. This section provides for an optional method of filing 
for any local exchange carrier that is described as subset 3 carrier in 
Sec. 69.602, which elects to issue its own Access Tariff for a period 
commencing on or after April 1, 1989, and which serves 50,000 or fewer 
access lines in a study area as determined under Sec. 36.611(a)(8) of 
this chapter. However, the Commission may require any carrier to submit 
such information as may be necessary for review of a tariff filing. This 
section (other than the preceding sentence of this paragraph) shall not 
apply to tariff filings of local exchange carriers subject to price cap 
regulation.
    (b) Explanation and data supporting tariff changes. The material to 
be submitted to either a tariff change or a new tariff which affects 
rates or charges must include an explanation of the filing in the 
transmittal as required by Sec. 61.33. The basis for ratemaking must 
comply with the following requirements. Except as provided in paragraph 
(b)(5) of this section, it is not necessary to submit this supporting 
data at the time of filing. However, the local exchange carrier

[[Page 179]]

should be prepared to submit the data promptly upon reasonable request 
by the Commission or interested parties.
    (1) For a tariff change, the local exchange carrier that is a cost 
schedule carrier must propose Tariff Sensitive rates based on the 
following:
    (i) For the first period, a cost of service study for Traffic 
Sensitive elements for the most recent 12 month period with related 
demand for the same period.
    (ii) For subsequent filings, a cost of service study for Traffic 
Sensitive elements for the total period since the local exchange 
carrier's last annual filing, with related demand for the same period.
    (2) For a tariff change, the local exchange company that is an 
average schedule carrier must propose Traffic Sensitive rates based on 
the following:
    (i) For the first period, the local exchange carrier's most recent 
annual Traffic Sensitive settlement from the National Exchange Carrier 
Association pool.
    (ii) For subsequent filings, an amount calculated to reflect the 
Traffic Sensitive average schedule pool settlement the carrier would 
have received if the carrier had continued to participate, based upon 
the most recent average schedule formulas approved by the Commission.
    (3) For a tariff change, the local exchange carrier that is a cost 
schedule carrier must propose Common Line rates based on the following:
    (i) For the first biennial filing, the common line revenue 
requirement shall be determined by a cost of service study for the most 
recent 12-month period. Subscriber line charges shall be based on cost 
and demand data for the same period. Carrier common line rates shall be 
determined by the following formula:
[GRAPHIC] [TIFF OMITTED] TR06JN97.008

where:
[GRAPHIC] [TIFF OMITTED] TR06JN97.009

And where:

CCL Rev Req = carrier common line revenue requirement for the most 
          recent 12-month period;
CCL MOUb = carrier common line minutes of use for the most 
          recent 12-month period;
CCL MOU1 = CCL MOUb; and
CCL MOU0 = carrier common line minutes of use for the 12-
          month period preceding the most recent 12-month period.

    (ii) For subsequent biennial filings, the common line revenue 
requirement shall be determined by a cost of service study for the most 
recent 24-month period. Subscriber line charges shall be based on cost 
and demand data for the same period. Carrier common line rates shall be 
determined by the following formula:
[GRAPHIC] [TIFF OMITTED] TR06JN97.010

Where:
[GRAPHIC] [TIFF OMITTED] TR06JN97.011

And where:

CCL Rev Req = carrier common line revenue requirement for the most 
          recent 24-month period;
CCL MOUb = carrier common line minutes of use for the most 
          recent 24-month period;
CCL MOU1 = carrier common line minutes of use for the 12-
          month period; and
CCL MOU0 = carrier common line minutes of use for the 12-
          month period preceding the most recent 12-month period.

    (4) For a tariff change, the local exchange carrier which is an 
average schedule carrier must propose common line rates based on the 
following:
    (i) For the first biennial filings, the common line revenue 
requirement shall be determined by the local exchange carrier's most 
recent annual Common Line settlement from the National Exchange Carrier 
Association. Subscriber line charges shall be based on cost and demand 
data for the same period. Carrier common line rates shall be determined 
by the following formula:
[GRAPHIC] [TIFF OMITTED] TR06JN97.012

Where:

[[Page 180]]

[GRAPHIC] [TIFF OMITTED] TR06JN97.013

And where:

CCL Rev Req = carrier common line settlement for the most recent 12-
          month period;
CCL MOUb = carrier common line minutes of use for the most 
          recent 12-month period;
CCL MOU1 = CCL MOUb; and
CCL MOU0 = carrier common line minutes of use for the 12-
          month period preceding the most recent 12-month period.

    (ii) For subsequent biennial filings, the common line revenue 
requirement shall be an amount calculated to reflect the average 
schedule pool settlements the carrier would have received if the carrier 
had continued to participate in the carrier common line pool, based upon 
the average schedule Common Line formulas developed by the National 
Exchange Carrier Association for the most recent 24-month period. 
Subscriber line charges shall be based on cost and demand data for the 
same period. Carrier common line rates shall be determined by the 
following formula:
[GRAPHIC] [TIFF OMITTED] TR06JN97.014

Where:
[GRAPHIC] [TIFF OMITTED] TR06JN97.015

And where:

CCL Rev Req = carrier common line settlement for the most recent 24-
          month period;
CCL MOUb = carrier common line minutes of use for the most 
          recent 24-month period;
CCL MOU1 = carrier common line minutes of use for the most 
          recent 12-month period; and
CCL MOU0 = carrier common line minutes of use for the 12-
          month period preceding the most recent 12-month period.

    (5) For End User Common Line charges included in a tariff pursuant 
to this Section, the local exchange carrier must provide supporting 
information for the two-year historical period with its letter of 
transmittal in accordance with Sec. 61.38.
    (c) Maximum allowable rate of return. Local exchange carriers filing 
tariffs under this section are not required to comply with Secs. 65.700 
through 65.701, inclusive, of the Commission's Rules, except with 
respect to periods during which tariffs were not subject to this 
section. The Commission may require any carrier to submit such 
information if it deems it necessary to monitor the carrier's earnings. 
However, rates must be calculated based on the local exchange carrier's 
prescribed rate of return applicable to the period during which the 
rates are effective.
    (d) Rates for a new service that is the same as that offered by a 
price cap regulated local exchange carrier providing service in an 
adjacent serving area are deemed presumptively lawful, if the proposed 
rates, in the aggregate, are no greater than the rates established by 
the price cap local exchange carrier. Tariff filings made pursuant to 
this paragraph must include the following:
    (1) A brief explanation of why the service is like an existing 
service offered by a geographically adjacent price cap regulated local 
exchange carrier; and
    (2) Data to establish compliance with this subsection that, in 
aggregate, the proposed rates for the new service are no greater than 
those in effect for the same or comparable service offered by that same 
geographically adjacent price cap regulated local exchange carrier. 
Compliance may be shown through submission of applicable tariff pages of 
the adjacent carrier; a showing that the serving areas are adjacent; any 
necessary explanations and work sheets.
    (e) Average schedule companies filing pursuant to this section shall 
retain their status as average schedule companies.
    (f) On each page of cost support material submitted pursuant to this 
section, the carrier shall indicate the transmittal number under which 
that page was submitted.

[52 FR 26682, July 16, 1987, as amended at 53 FR 36289, Sept. 19, 1988; 
55 FR 42382, Oct. 19, 1990; 58 FR 36147, July 6, 1993; 62 FR 31004, June 
6, 1997; 64 FR 46588, Aug. 26, 1999]



Sec. 61.40  Private line rate structure guidelines.

    (a) The Commission uses a variety of tools to determine whether a 
carrier's private line tariffs are just, reasonable,

[[Page 181]]

and nondiscriminatory. The carrier's burden of cost justification can be 
reduced when its private line rate structures comply with the following 
five guidelines.
    (1) Rate structures for the same or comparable services should be 
integrated;
    (2) Rate structures for the same or comparable services should be 
consistent with one another;
    (3) Rate elements should be selected to reflect market demand, 
pricing convenience for the carrier and customers, and cost 
characteristics; a rate element which appears separately in one rate 
structure should appear separately in all other rate structures;
    (4) Rate elements should be consistently defined with respect to 
underlying service functions and should be consistently employed through 
all rate structures; and
    (5) Rate structures should be simple and easy to understand.
    (b) The guidelines do not preclude a carrier, in a given case when a 
private line tariff does not comply with these guidelines, from 
justifying its departure from the guidelines and showing that its tariff 
is just, reasonable, and nondiscriminatory.



Sec. 61.41  Price cap requirements generally.

    (a) Sections 61.42 through 61.49 shall apply as follows:
    (1) [Reserved]
    (2) To such local exchange carriers as specified by Commission 
order, and to all local exchange carriers, other than average schedule 
companies, that are affiliated with such carriers; and
    (3) On an elective basis, to local exchange carriers, other than 
those specified in paragraph (a)(2) of this section, that are neither 
participants in any Association tariff, nor affiliated with any such 
participants, except that affiliation with average schedule companies 
shall not bar a carrier from electing price cap regulation provided the 
carrier is otherwise eligible.
    (b) If a telephone company, or any one of a group of affiliated 
telephone companies, files a price cap tariff in one study area, that 
telephone company and its affiliates, except its average schedule 
affiliates, must file price cap tariffs in all their study areas.
    (c) The following rules in this paragraph (c) apply to telephone 
companies subject to price cap regulation, as that term is defined in 
Sec. 61.3(ee), which are involved in mergers, acquisitions, or similar 
transactions.
    (1) Any telephone company subject to price cap regulation that is a 
party to a merger, acquisition, or similar transaction shall continue to 
be subject to price cap regulation notwithstanding such transaction.
    (2) Where a telephone company subject to price cap regulation 
acquires, is acquired by, merges with, or otherwise becomes affiliated 
with a telephone company that is not subject to price cap regulation, 
the latter telephone company shall become subject to price cap 
regulation no later than one year following the effective date of such 
merger, acquisition, or similar transaction and shall accordingly file 
price cap tariffs to be effective no later than that date in accordance 
with the applicable provisions of this part 61.
    (3) Notwithstanding the provisions of Sec. 61.41(c)(2), when a 
telephone company subject to price cap regulation acquires, is acquired 
by, merges with, or otherwise becomes affiliated with a telephone 
company that qualifies as an ``average schedule'' company, the latter 
company may retain its ``average schedule'' status or become subject to 
price cap regulation in accordance with Sec. 69.3(i)(3) of this chapter 
and the requirements referenced in that section.
    (d) Local exchange carriers that become subject to price cap 
regulation as that term is defined in Sec. 61.3(ee) shall not be 
eligible to withdraw from such regulation.

[55 FR 42382, Oct. 19, 1990; 55 FR 50558, Dec. 7, 1990, as amended at 56 
FR 55239, Oct. 25, 1991; 64 FR 46589, Aug. 26, 1999; 65 FR 38695, June 
21, 2000; 65 FR 57741, Sept. 26, 2000]



Sec. 61.42  Price cap baskets and service categories.

    (a)-(c) [Reserved]
    (d) Each local exchange carrier subject to price cap regulation 
shall establish baskets of services as follows:
    (1) A basket for the common line, marketing, and certain residual 
interconnection charge interstate access

[[Page 182]]

elements as described in Secs. 69.115, 69.152, 69.153, 69.154, 69.155, 
69.156, and 69.157 of this chapter. For purposes of Secs. 61.41 through 
61.49, this basket shall be referred to as the ``CMT basket.''
    (2) A basket for traffic sensitive switched interstate access 
elements. For purposes of Secs. 61.41 through 61.49 of this chapter, 
this basket shall be referred to as the ``traffic-sensitive basket.''
    (3) A basket for trunking services as described in Secs. 69.110, 
69.111, 69.112, 69.125(b), 69.129, and 69.155 of this chapter. For 
purposes of Secs. 61.41 through 61.49, this basket shall be referred to 
as the ``trunking basket.''
    (4)(i) To the extent that a local exchange carrier specified in 
Sec. 61.41(a) (2) or (3) offers interstate interexchange services that 
are not classified as access services for the purpose of part 69 of this 
chapter, such exchange carrier shall establish a fourth basket for such 
services. For purposes of Secs. 61.41 through 61.49 of this chapter, 
this basket shall be referred to as the ``interexchange basket.''
    (ii) If a price cap carrier has implemented interLATA and intraLATA 
toll dialing parity everywhere it provides local exchange services at 
the holding company level, that price cap carrier may file a tariff 
revision to remove corridor and interstate intraLATA toll services from 
its interexchange basket.
    (5) A basket for special access services as described in Sec. 69.114 
of this chapter.
    (e)(1) The traffice sensitive switched interstate access basket 
shall contain such services as the Commission shall permit or require, 
including the following service categories:
    (i) Local switching as described in Sec. 69.106(f) of this chapter;
    (ii) Information, as described in Sec. 69.109 of this chapter;
    (iii) Data base access services;
    (iv) Billing name and address, as described in Sec. 69.128 of this 
chapter;
    (v) Local switching trunk ports, as described in Sec. 69.106(f)(1) 
of this chapter; and
    (vi) Signalling transfer point port termination, as described in 
Sec. 69.125(c) of this chapter.
    (2) The trunking basket shall contain such switched transport as the 
Commission shall permit or require, including the following service 
categories and subcategories:
    (i) Voice grade entrance facilities, voice grade direct-trunked 
transport, voice grade dedicated signalling transport,
    (ii) High capacity flat-rated transport, including the following 
service subcategories:
    (A) DS1 entrance facilities, DS1 direct-trunked transport, DS1 
dedicated signalling transport, and
    (B) DS3 entrance facilities, DS3 direct-trunked transport, DS3 
dedicated signalling transport.
    (iii) Tandem-switched transport, as described in Sec. 69.111 of this 
chapter; and
    (iv) Signalling for tandem switching, as described in Sec. 69.129 of 
this chapter.
    (3) The special access basket shall contain special access services 
as the Commission shall permit or require, including the following 
service categories and subcategories:
    (i) Voice grade special access, WATS special access, metallic 
special access, and telegraph special access services;
    (ii) Audio and video services;
    (iii) High capacity special access, and DDS services, including the 
following service subcategories:
    (A) DS1 special access services; and
    (B) DS3 special access services;
    (iv) Wideband data and wideband analog services.
    (f) Each local exchange carrier subject to price cap regulation 
shall exclude from its price cap baskets such services or portions of 
such services as the Commission has designated or may hereafter 
designate by order.
    (g) New services, other than those within the scope of paragraph (f) 
of this section, must be included in the affected basket at the first 
annual price cap tariff filing following completion of the base period 
in which they are introduced. To the extent that such new services are 
permitted or required to be included in new or existing service 
categories within the assigned basket, they shall be so included at the 
first annual price cap tariff filing following

[[Page 183]]

completion of the base period in which they are introduced.

[54 FR 19842, May 8, 1989, as amended at 55 FR 42382, Oct. 19, 1990; 55 
FR 50558, Dec. 7, 1990; 56 FR 5956, Feb. 14, 1991; 56 FR 55239, Oct. 25, 
1991; 57 FR 54718, Nov. 20, 1992; 58 FR 7868, Feb. 10, 1993; 58 FR 
29552, May 21, 1993; 58 FR 31914, June 7, 1993; 58 FR 36145, July 6, 
1993; 59 FR 10301, Mar. 4, 1994; 59 FR 32930, June 27, 1994; 60 FR 4569, 
Jan. 24, 1995; 60 FR 13639, Mar. 14, 1995; 60 FR 52346, Oct. 6, 1995; 62 
FR 31930, June 11, 1997; 64 FR 46589, Aug. 26, 1999; 64 FR 51265, Sept. 
22, 1999; 65 FR 38695, June 21, 2000]



Sec. 61.43  Annual price cap filings required.

    Carriers subject to price cap regulation shall submit annual price 
cap tariff filings that propose rates for the upcoming tariff year, that 
make appropriate adjustments to their PCI, API, and SBI values pursuant 
to Secs. 61.45 through 61.47, and that incorporate new services into the 
PCI, API, or SBI calculations pursuant to Secs. 61.45(g), 61.46(b), and 
61.47 (b) and (c). Carriers may propose rate, PCI, or other tariff 
changes more often than annually, consistent with the requirements of 
Sec. 61.59.

[64 FR 46589, Aug. 26, 1999]



Sec. 61.44  [Reserved]



Sec. 61.45  Adjustments to the PCI for Local Exchange Carriers.

    (a) Local exchange carriers subject to price cap regulation shall 
file adjustments to the PCI for each basket as part of the annual price 
cap tariff filing, and shall maintain updated PCIs to reflect the effect 
of mid-year exogenous cost changes.
    (b)(1)(i) Adjustments to local exchange carrier PCIs, in those 
carriers' annual access tariff filings, the traffic sensitive basket 
described in Sec. 61.42(d)(2), the trunking basket described in 
Sec. 61.42(d)(3), the special access basket described in 
Sec. 61.42(d)(5) and the Interexchange Basket described in 
Sec. 61.42(d)(4)(i), shall be made pursuant to the following formula:

``PCIt=PCIt-1[1+w[GDP--PI--X] + Z/R].''
PCIt-1 = PCIt-1[1+w[GDP-PI-X] + Z/R]

    Where the terms in the equation are described:

GDP-PI = For annual filings only, the percentage change in the GDP-PI 
between the quarter ending six months prior to the effective date of the 
new annual tariff and the corresponding quarter of the previous year. 
For all other filings, the value is zero.
X = For the CMT, traffic sensitive, and trunking baskets, for annual 
filings only, the factor is set at the level prescribed in paragraphs 
(b)(1)(ii) and (iii) of this section. For the interexchange basket, for 
annual filings only, the factor is set at the level prescribed in 
paragraph (b)(1)(v) of this section. For the special access basket, for 
annual filings only, the factor is set at the level prescribed in 
paragraph (b)(1)(iv) of this section. For all other filings, the value 
is zero.
g = For annual filings for the CMT basket only, the ratio of minutes of 
use per access line during the base period, to minutes of use per access 
line during the previous base period, all minus 1.
Z = The dollar effect of current regulatory changes when compared to the 
regulations in effect at the time the PCI was updated to 
PCIt-1, measured at base period level of operations.
Targeted Reduction = the actual possible dollar value of the (GDP-PI--X) 
reductions that will be targeted to the ATS Charge pursuant to 
Sec. 61.45(i)(3). The reductions calculated by applying the (GDP-PI--X) 
portion of the formula to the CCL element within the CMT basket will 
contain the ``g'' component, as defined above.
R = Base period quantities for each rate element ``I'', multiplied by 
the price for each rate element ``I'' at the time the PCI was updated to 
PCIt-1.
w = R + Z, all divided by R (used for the traffic sensitive, trunking, 
and special access baskets).
wix = R--(access rate in effect at the time the PCI was 
updated to PCIt-1 * base period demand) + Z, all divided by 
R.
PCIt = The new PCI value.
PCIt-1 = the immediately preceding PCI value.


[[Page 184]]


    (b)(1)(ii) The X value applicable to the baskets specified in 
Secs. 61.42(d)(1), (d)(2), and (d)(3), shall be 6.5%, to the extent 
necessary to reduce a tariff entity's ATS charge to its Target Rate as 
set forth in Sec. 61.3(qq). Once an price cap local exchange carrier 
tariff entity's ATS Charge is equal to the Target Rate as set forth in 
Sec. 61.3(qq) for the first time (the former NYNEX telephone companies 
may be treated as a separate tariff entity), then, except as provided in 
paragraph (b)(1)(iii) of this section, X is equal to GDP-PI and no 
further reductions will be mandated (i.e., if applying the full X-factor 
reduction for a given year would reduce the ATS charge below the Target 
Rate as set forth in Sec. 61.3 (qq), the amount of X-factor reduction 
applied that year will be the amount necessary to reach the Target Rate 
as set forth in Sec. 61.3 (qq)). A filing entity does not reach the 
Target Rate as set forth in Sec. 61.3(qq) in any year in which it 
exercises an exogenous adjustment pursuant to Sec. 61.45(d)(vii). For 
companies with separate tariff entities under a single price cap, the 
following rules shall apply:
    (A) Targeting amounts as defined in Sec. 61.45(i)(1)(i) shall be 
identified separately, using the revenue for each of the tariff entities 
under the cap.
    (B) Each tariff entity shall only be required to use the amount of 
targeting necessary to get to the Target Rate as set forth in Sec. 61.3 
(qq).
    (b)(1)(iii)(A) Except as provided in paragraph (b)(1)(iii)(B) of 
this section, once the Tariff Entity's Target Rate as set forth in 
Sec. 61.3 (qq) is achieved, the X-factor for the CMT basket will equal 
GDP-PI as long as GDP-PI is less than or equal to 6.5% and greater than 
0%. If GDP-PI is greater than 6.5%, and an entity has eliminated its CCL 
and multi-line business PICCs charges, the X-factor for the CMT basket 
will equal 6.5%, and all End User Common Line charges, rates and nominal 
caps, will be increased by the difference between GDP-PI and the 6.5% X-
factor. If GDP-PI is less than 0, the X-factor for the CMT basket will 
be 0.
    (B) For tariff filing entities with a Target Rate of $0.0095, or for 
the portion of a filing entity consolidated pursuant to Sec. 61.48(o) 
that, prior to such consolidation, had a Target Rate of $0.0095, in 
which the ATS charge has achieved the Target Rate but in which the 
carrier common line (CCL) charge has not been eliminated, the X-factor 
for the CMT basket will be 6.5% until the earlier of June 30, 2004, or 
until CCL charges are eliminated pursuant to paragraph (i)(4) of this 
section. Thereafter, in any filing entity in which a CCL charge remains 
after July 1, 2004, the X-factor for the CMT basket will be determined 
pursuant to paragraph (b)(1)(iii)(A) of this section as if CCL charges 
were eliminated.
    (b)(1)(iv) For the special access basket specified in 
Sec. 61.42(d)(5), the value of X shall be 3.0% for the 2000 annual 
filing. The value of X shall be 6.5% for the 2001, 2002 and 2003 annual 
filings. Starting in the 2004 annual filing, X shall be equal to GDP-PI 
for the special access basket.
    (b)(1)(v) For the interexchange basket specified in 
Sec. 61.42(d)(4), the value of X shall be 3.0% for all annual filings.
    (b)(2) Adjustments to price cap local exchange carrier PCIs and 
average price cap CMT revenue per line, in tariff filings other than the 
annual access tariff filing, for the CMT basket described in 
Sec. 61.42(d)(1), the traffic sensitive basket described in 
Sec. 61.42(d)(2), the trunking basket described in Sec. 61.42(d)(3), the 
interexchange basket described in Sec. 61.42(d)(4), and the special 
access basket described in Sec. 61.42(d)(5), shall be made pursuant to 
the formulas set forth in paragraph (b)(1)(i) of this section, except 
that the ``w(GDP-PI--X)'' component of those PCI formulas shall not be 
employed.
    (c) Effective July 1, 2000, the prices of the CMT basket rate 
elements, excluding special access surcharges under Sec. 69.115 of this 
chapter and line ports in excess of basic under Sec. 69.157 of this 
chapter, shall be set based upon Average Price Cap CMT Revenue per Line 
month.
    (d) The exogenous cost changes represented by the term ``Z'' in the 
formula detailed in paragraph (b)(1)(i) of this section shall be limited 
to those cost changes that the Commission shall permit or require by 
rule, rule waiver, or declaratory ruling.
    (1) Subject to further order of the Commission, those exogenous 
changes shall include cost changes caused by:

[[Page 185]]

    (i) The completion of the amortization of depreciation reserve 
deficiencies;
    (ii) Such changes in the Uniform System of Accounts, including 
changes in the Uniform System of Accounts requirements made pursuant to 
Sec. 32.16 of this chapter, as the Commission shall permit or require be 
treated as exogenous by rule, rule waiver, or declaratory ruling;
    (iii) Changes in the Separations Manual;
    (iv) [Reserved]
    (v) The reallocation of investment from regulated to nonregulated 
activities pursuant to Sec. 64.901 of this chapter;
    (vi) Such tax law changes and other extraordinary cost changes as 
the Commission shall permit or require be treated as exogenous by rule, 
rule waiver, or declaratory ruling;
    (vii) Retargeting the PCI to the level specified by the Commission 
for carriers whose base year earnings are below the level of the lower 
adjustment mark, subject to the limitation in Sec. 69.731 of this 
chapter. The allocation of LFAM amounts will be allocated pursuant to 
Sec. 61.45(d)(3). This section shall not be applicable to tariff filings 
during the tariff year beginning July 1, 2000, but is applicable in 
subsequent years;
    (viii) Inside wire amortizations;
    (ix) The completion of amortization of equal access expenses.
    (2) Local exchange carriers specified in Secs. 61.41(a)(2) or (a)(3) 
shall, in their annual access tariff filing, recognize all exogenous 
cost changes attributable to modifications during the coming tariff year 
in their Subscriber Plant Factor and the Dial Equipment Minutes factor, 
and completions of inside wire amortizations and reserve deficiency 
amortizations.
    (3) Exogenous cost changes shall be apportioned on a cost-causative 
basis between price cap services as a group, and excluded services as a 
group. Total exogenous cost changes thus attributed to price cap 
services shall be recovered from services other than those used to 
calculate the ATS charge.
    (e) [Reserved]
    (f) The exogenous costs caused by new services subject to price cap 
regulation must be included in the appropriate PCI calculations under 
paragraphs (b) and (c) of this section beginning at the first annual 
price cap tariff filing following completion of the base period in which 
such services are introduced.
    (g) In the event that a price cap tariff becomes effective, which 
tariff results in an API value (calculated pursuant to Sec. 61.46) that 
exceeds the currently applicable PCI value, the PCI value shall be 
adjusted upward to equal the API value.
    (h) [Reserved]
    (i)(1)(i) Price cap local exchange carriers that are recovering 
revenues through rates pursuant to Secs. 69.106, 69.108, 69.109, 69.110, 
69.111, 69.112, 69.113, 69.118, 69.123, 69.124, 69.125, 69.129, or 
Sec. 69.155 of this chapter shall target, to the extent necessary to 
reduce the ATS Charge to the Target Rate as set forth in Sec. 61.3 (qq) 
for the first time, any PCI reductions associated with the dollar impact 
of application of the (GDP-PI--X) portion of the formula in 
Sec. 61.45(b)(1)(i) to the traffic sensitive and trunking baskets. In 
order to calculate the actual dollars to transfer to the trunking and 
traffic sensitive baskets, carriers will first determine the ``Targeted 
Revenue Differential'' that will be transferred to the trunking and 
traffic sensitive baskets to reduce the ATS Charge to the Target Rate as 
set forth in Sec. 61.3(qq). The Targeted Revenue Differential shall be 
applied only to the trunking and traffic sensitive baskets to the extent 
necessary to reduce the ATS charge to the Target Rate as set forth in 
Sec. 61.3 (qq), and shall not be applied to reduce the PCIs in any other 
basket or to reduce Average Price Cap CMT Revenue per Line month, except 
as provided in Sec. 61.45(i)(4).
    (ii) For the purposes of Sec. 61.45(i)(1)(i), Targeted Revenue 
Differential will be determined by adding together the following 
amounts:
    (A) R * (GDP-PI-X) for the traffic sensitive basket, trunking 
basket, and the CMT basket excluding CCL revenues; and
    (B) CCL Revenues * [(GDP-PI-X-(g/2)]/[1 + (g/2)]
    Where ``g'' is defined in Sec. 61.45(b)(1)(i).
    (2) Until a tariff entity's ATS Charge equals the Target Rate as set 
forth in

[[Page 186]]

Sec. 61.3 (qq) for the first time, the Targeted Revenue Differential 
will be targeted to reduce the following rates for that tariff filing 
entity, in order of priority:
    (i) To the residual per minute Transport Interconnection Charge, 
until that rate is $0.00; then
    (ii) To the Information Surcharge, until that rate is $0.00; then
    (iii) To the other Local Switching charges and Switched Transport 
charges until the tariff entity's ATS Rate equals the Target Rate as set 
forth in Sec. 61.3(qq) for the first time. In making these reductions, 
the reductions to Local Switching rates as a percentage of total X-
factor reductions must be greater than or equal to the percentage 
proportion of Local Switching revenues to the total sum of revenues for 
Local Switching, Local Switching Trunk Ports, Signalling Transfer Point 
Port Termination, Switched Direct Trunked Transport, Signalling for 
Switched Direct Trunked Transport, Entrance Facilities for switched 
access traffic, Tandem Switched Transport, and Signalling for Tandem 
Switching (i.e., Local Switching gets at least its proportionate share 
of reductions).
    (3) After a price cap local exchange carrier reaches the Target Rate 
as set forth in Sec. 61.3(qq), the ATS Rate will be recalculated each 
subsequent Annual Filing. This process will identify the new ATS Charge 
for the new base period level. Due to change in base period demand and 
inclusion of new services for that annual filing, the absolute level of 
a tariff entity's ATS Charge may change. The resulting new ATS Charge 
level will be what that tariff entity will be measured against during 
that base period. For example, if a company whose target is $0.0055 
reached the Target Rate during the 2000 annual filing, that level may 
change to $0.0058 in the 2001 annual filing due to change in demand and 
inclusion of new services. Therefore, it will be the $0.0058 average 
rate that the tariff entity will be measured against for all non-annual 
filings. Likewise, if that same company was at the Target Rate during 
the 2000 filing, that level may change to $0.0053 average rate in the 
2001 annual filing due to change in demand and inclusion of new 
services. In that case, it will be at the $0.0053 average rate that the 
tariff entity will be measured.
    (4) A company electing a $0.0095 Target Rate will, in the tariff 
year it reaches the Target Rate, apply any Targeted Revenue Differential 
remaining after reaching the Target Rate to reduce Average Price Cap CMT 
Revenue per Line month until the CCL charge is eliminated. In subsequent 
years, until the earlier of June 30, 2004 or when the CCL charge is 
eliminated, tariff filing entities with a Target Rate of $0.0095, or the 
portion of a filing entity consolidated pursuant to Sec. 61.48(o) that, 
prior to such consolidation, had a Target Rate of $0.0095, will reduce 
Average Price Cap CMT Revenue per Line month according to the following 
method:
    (i) Filing entity calculates the maximum allowable carrier common 
line revenue, as defined in Sec. 61.46(d)(1), that would be permitted in 
the absence of further adjustment pursuant to this paragraph;
    (ii) Filing entity identifies maximum amount of dollars available to 
reduce Average Price Cap CMT Revenue per Line month by the following:

    (CMT revenue in a $0.0095 Area--CCL revenue in a $0.0095 Area) * 
(GDP-PI--X) + (CCL Revenue in a $0.0095 Area) * [(GDP-PI--X)--(g/2)]/
[1+(g/2)]

    (iii) The Average Price Cap CMT Revenue per Line month shall then be 
reduced by the lesser of the amount described in paragraph (i)(4)(i) of 
this section and the amount described in paragraph (i)(4)(ii) of this 
section, divided by base period Switched Access End User Common Line 
Charge lines.

[65 FR 38696, June 21, 2000; 65 FR 57741, Seot. 26, 2000]



Sec. 61.46  Adjustments to the API.

    (a) Except as provided in paragraphs (d) and (e) of this section, in 
connection with any price cap tariff filing proposing rate changes, the 
carrier must calculate an API for each affected basket pursuant to the 
following methodology:

APIt = APIt-1[[Sigma]i vi 
    (Pt/Pt-1)i]
Where:
APIt = the proposed API value,

[[Page 187]]

APIt-1 = the existing API value,
Pt = the proposed price for rate element ``i,''
Pt-1 = the existing price for rate element ``i,'' and
vi = the current estimated revenue weight for rate element 
    ``i,'' calculated as the ratio of the base period demand for the 
    rate element ``i'' priced at the existing rate, to the base period 
    demand for the entire basket of services priced at existing rates.
    (b) New services subject to price cap regulation must be included in 
the appropriate API calculations under paragraph (a) of this section 
beginning at the first annual price cap tariff filing following 
completion of the base period in which they are introduced. This index 
adjustment requires that the demand for the new service during the base 
period must be included in determining the weights used in calculating 
the API.
    (c) Any price cap tariff filing proposing rate restructuring shall 
require an adjustment to the API pursuant to the general methodology 
described in paragraph (a) of this section. This adjustment requires the 
conversion of existing rates into rates of equivalent value under the 
proposed structure, and then the comparison of the existing rates that 
have been converted to reflect restructuring to the proposed 
restructured rates. This calculation may require use of carrier data and 
estimation techniques to assign customers of the preexisting service to 
those services (including the new restructured service) that will remain 
or become available after restructuring.
    (d) The maximum allowable carrier common line (CCL) revenue shall be 
computed pursuant to the following methodology:

CCL = CMT-EUCL-Interstate Access Universal Service Support Mechanism Per 
          Line-PICC

Where:

CMT = Price Cap CMT Revenue as defined in Sec. 61.3(cc).
EUCL = Maximum allowable EUCL rates established pursuant to Sec. 69.152 
          of this chapter multiplied by base period lines.
Interstate Access Universal Service Support Per Line = the amount as 
          determined by the Administrator pursuant to Sec. 54.807 of 
          this chapter times the number of base period lines for each 
          customer class and zone receiving Interstate Access Universal 
          Service support pursuant to part 54, subpart J.
PICC = Maximum allowable PICC rates established pursuant to Sec. 69.153 
          of this chapter multiplied by base period lines.

    (e) In no case shall a price cap local exchange carrier include data 
associated with services offered pursuant to contract tariff in the 
calculations required by this section.

[65 FR 38698, June 21, 2000; 65 FR 57741, 57742, Sept. 26, 2000]



Sec. 61.47  Adjustments to the SBI; pricing bands.

    (a) In connection with any price cap tariff filing proposing changes 
in the rates of services in service categories, subcategories, or 
density zones, the carrier must calculate an SBI value for each affected 
service category, subcategory, or density zone pursuant to the following 
methodology:

SBIt = SBIt[hyphen]1[[Sigma]i 
          vi(Pt/Pt-1)i]

where
SBIt = the proposed SBI value,
SBIt[hyphen]1 = the existing SBI value,
Pt = the proposed price for rate element ``i,''
Pt[hyphen]1 = the existing price for rate element ``i,'' and
vi = the current estimated revenue weight for rate element 
          ``i,'' calculated as the ratio of the base period demand for 
          the rate element ``i'' priced at the existing rate, to the 
          base period demand for the entire group of rate elements 
          comprising the service category priced at existing rates.

    (b) New services that are added to existing service categories or 
subcategories must be included in the appropriate SBI calculations under 
paragraph (a) of this section beginning at the first annual price cap 
tariff filing following completion of the base period in which they are 
introduced. This index adjustment requires that the demand for the new 
service during the base period must be included in determining the 
weights used in calculating the SBI.
    (c) In the event that the introduction of a new service requires the 
creation of a new service category or subcategory, a new SBI must be 
established for that service category or subcategory beginning at the 
first annual price cap tariff filing following completion of the base 
period in which the

[[Page 188]]

new service is introduced. The new SBI should be initialized at a value 
of 100, corresponding to the service category or subcategory rates in 
effect the last day of the base period, and thereafter should be 
adjusted as provided in paragraph (a) of this section.
    (d) Any price cap tariff filing proposing rate restructuring shall 
require an adjustment to the affected SBI pursuant to the general 
methodology described in paragraph (a) of this section. This adjustment 
requires the conversion of existing rates in the rate element group into 
rates of equivalent value under the proposed structure, and then the 
comparison of the existing rates that have been converted to reflect 
restructuring to the proposed restructured rates. This calculation may 
require use of carrier data and estimation techniques to assign 
customers of the preexisting service to those services (including the 
new restructured service) that will remain or become available after 
restructuring.
    (e) Pricing bands shall be established each tariff year for each 
service category and subcategory within a basket. Each band shall limit 
the pricing flexibility of the service category, subcategory, as 
reflected in the SBI, to an annual increase of a specified percent 
listed in this paragraph, relative to the percentage change in the PCI 
for that basket, measured from the levels in effect on the last day of 
the preceding tariff year. For local exchanage carriers subject to price 
cap regulation as that term is defined in Sec. 61.3(ee), there shall be 
no lower pricing band for any service category or subcategory.
    (1) Five percent:
    (i) Local Switching (traffic sensitive basket)
    (ii) Information (traffic sensitive basket)
    (iii) Database Access Services (traffic sensitive basket)
    (iv) 800 Database Vertical Services subservice (traffic sensitive 
basket)
    (v) Billing Name and Address (traffic sensitive basket)
    (vi) Local Switching Trunk Ports (traffic sensitive basket)
    (vii) Signalling Transfer Point Port Termination (traffic sensitive 
basket)
    (viii) Voice Grade (trunking and special access baskets)
    (ix) Audio/Video (special access basket)
    (x) Total High Capacity (trunking and special access baskets)
    (xi) DS1 Subservice (trunking and special access baskets)
    (xii) DS3 Subservice (trunking and special access baskets)
    (xiii) Wideband (special access basket)
    (2) Two percent:
    (i) Tandem-Switched Transport (trunking basket)
    (ii) Signalling for Tandem Switching (trunking basket)
    (f) A local exchange carrier subject to price cap regulation may 
establish density zones pursuant to the requirements set forth in 
Sec. 69.123 of this chapter, for any service in the trunking and special 
access baskets, other than the interconnection charge set forth in 
Sec. 69.124 of this chapter. The pricing flexibility of each zone shall 
be limited to an annual increase of 15 percent, relative to the 
percentage change in the PCI for that basket, measured from the levels 
in effect on the last day of the preceding tariff year. There shall be 
no lower pricing band for any density zone.
    (g)-(i)(l) [Reserved]
    (2) Effective January 1, 1998, notwithstanding the requirements of 
paragraph (a) of this section, if a local exchange carrier is recovering 
interconnection charge revenues through per-minute rates pursuant to 
Sec. 69.155 of this chapter, any reductions to the PCI for the basket 
designated in Sec. 61.42(d)(3) resulting from the application of the 
provisions of Sec. 61.45(b)(1)(i) and from the application of the 
provisions of Secs. 61.45(i)(1) and 61.45(i)(2) shall be directed to the 
SBI of the service category designated in Sec. 61.42(d)(i).
    (3) [Reserved]
    (4) Effective January 1, 1998, the SBI reduction required by 
paragraph (i)(2) of this section shall be determined by dividing the sum 
of the dollar amount of any PCI reduction required by Secs. 61.45(i)(1) 
and 61.45(i)(2), by the dollar amount associated with the SBI for the 
service category designated in Sec. 61.42(e)(2)(vi), and multiplying the 
SBI for the service category designated in Sec. 61.42(e)(2)(vi) by one 
minus the resulting ratio.

[[Page 189]]

    (5) Effective July 1, 2000, notwithstanding the requirements of 
paragraph (a) of this section and subject to the limitations of 
Sec. 61.45(i), if a local exchange carrier is recovering an ATS charge 
greater than its Target Rate as set forth in Sec. 61.3(qq), any 
reductions to the PCI for the traffic sensitive or trunking baskets 
designated in Secs. 61.42(d)(2) and 61.42(d)(3) resulting from the 
application of the provisions of Sec. 61.45(b), and the formula in 
Sec. 61.45(b) and from the application of the provisions of 
Secs. 61.45(i)(1), and 61.45(i)(2) shall be directed to the SBIs of the 
service categories designated in Secs. 61.42(e)(1) and 61.42(e)(2).
    (j) [Reserved]
    (k) In no case shall a price cap local exchange carrier include data 
associated with services offered pursuant to contract tariff in the 
calculations required by this section.

[54 FR 19843, May 8, 1989, as amended at 55 FR 42384, Oct. 19, 1990; 56 
FR 55239, Oct. 25, 1991; 57 FR 54331, Nov. 18, 1992; 58 FR 7868, Feb. 
10, 1993; 58 FR 48762, Sept. 17, 1993; 59 FR 10302, Mar. 4, 1994; 59 FR 
32930, June 27, 1994; 60 FR 19528, Apr. 19, 1995; 60 FR 52346, Oct. 6, 
1995; 62 FR 4659, Jan. 31, 1997; 62 FR 31932, June 11, 1997; 62 FR 
40460, July 29, 1997; 64 FR 46590, Aug. 26, 1999; 64 FR 51265, Sept. 22, 
1999; 65 FR 38698, June 21, 2000; 65 FR 57742, Sept. 26, 2000]



Sec. 61.48  Transition rules for price cap formula calculations.

    (a)-(h) [Reserved]
    (i) Transport and Special Access Density Pricing Zone Transition 
Rules--(1) Definitions. The following definitions apply for purposes of 
paragraph (i) of this section:
    Earlier date is the earlier of the special access zone date and the 
transport zone date.
    Earlier service is special access if the special access zone date 
precedes the transport zone date, and is transport if the transport zone 
date precedes the special access zone date.
    Later date is the later of the special access zone date and the 
transport zone date.
    Later service is transport if the special access zone date precedes 
the transport zone date, and is special access if the transport zone 
date precedes the special access zone date.
    Revenue weight of a given group of services included in a zone 
category is the ratio of base period demand for the given service rate 
elements included in the category priced at existing rates, to the base 
period demand for the entire group of rate elements comprising the 
category priced at existing rates.
    Special access zone date is the date on which a local exchange 
carrier tariff establishing divergent special access rates in different 
zones, as described in Sec. 69.123(c) of this chapter, becomes 
effective.
    Transport zone date is the date on which a local exchange carrier 
tariff establishing divergent switched transport rates in different 
zones, as described in Sec. 69.123(d) of this chapter, becomes 
effective.
    (2) Simultaneous Introduction of Special Access and Transport Zones. 
Local exchange carriers subject to price cap regulation that have 
established density pricing zones pursuant to Sec. 69.123 of this 
chapter, and whose special access zone date and transport zone date 
occur on the same date, shall initially establish density pricing zone 
SBIs and bands pursuant to the methodology in Secs. 61.47(e) through 
(f).
    (3) Sequential Introduction of Zones in the Same Tariff Year. 
Notwithstanding Secs. 61.47(e) through (f), local exchange carriers 
subject to price cap regulation that have established density pricing 
zones pursuant to Sec. 69.123 of this chapter, and whose special access 
zone date and transport zone date occur on different dates during the 
same tariff year, shall, on the earlier date, establish density pricing 
zone SBIs and pricing bands using the methodology described in 
Secs. 61.47(e) through (f), but applicable to the earlier service only. 
On the later date, such carriers shall recalculate the SBIs and pricing 
bands to limit the pricing flexibility of the services included in each 
density pricing zone category, as reflected in its SBI, as follows:
    (i) The upper pricing band shall be a weighted average of the 
following:
    (A) The upper pricing band that applied to the earlier services 
included in the zone category on the day preceding the later date, 
weighted by the revenue weight of the earlier services included in the 
zone category; and

[[Page 190]]

    (B) 1.05 times the SBI value for the services included in the zone 
category on the day preceding the later date, weighted by the revenue 
weight of the later services included in the zone category.
    (ii) [Reserved]
    (iii) On the later date, the SBI value for the zone category shall 
be equal to the SBI value for the category on the day preceding the 
later date.
    (4) Introduction of Zones in Different Tariff Years. Notwithstanding 
Secs. 61.47(e) through (f), those local exchange carriers subject to 
price cap regulation that have established density pricing zones 
pursuant to Sec. 69.123 of this chapter, and whose special access zone 
date and transport zone date do not occur within the same tariff year, 
shall, on the earlier date, establish density pricing zone SBIs and 
pricing bands using the methodology described in Secs. 61.47(e) through 
(f), but applicable to the earlier service only.
    (i) On the later date, such carriers shall use the methodology set 
forth in paragraphs (a) through (d) of Sec. 61.47 to calculate separate 
SBIs in each zone for each of the following groups of services:
    (A) DS1 special access services;
    (B) DS3 special access services;
    (C) DS1 entrance facilities, DS1 direct-trunked transport, and DS1 
dedicated signalling transport;
    (D) DS3 entrance facilities, DS3 direct-trunked transport, and DS3 
dedicated signalling transport;
    (E) Voice grade entrance facilities, voice grade direct-trunked 
transport, and voice grade dedicated signalling transport;
    (F) Tandem-switched transport; and
    (G) Such other special access services as the Commission may 
designate by order.
    (ii) From the later date through the end of the following tariff 
year, the annual pricing flexibility for each of the subindexes 
specified in paragraph (i)(4)(i) of this section shall be limited to an 
annual increase of five percent or an annual decrease of fifteen 
percent, relative to the percentage change in the PCI for the trunking 
basket, measured from the levels in effect on the last day of the tariff 
year preceding the tariff year in which the later date occurs.
    (iii) On the first day of the second tariff year following the 
tariff year during which the later date occurs, the local exchange 
carriers to which this paragraph applies shall establish the separate 
subindexes provided in Sec. 61.47(e), and shall set the initial SBIs for 
those density pricing zone categories that are combined (specified in 
paragraphs (i)(4)(i)(A), (i)(4)(i)(B), (i)(4)(i)(C), (i)(4)(i)(D), 
(i)(4)(i)(E), and (i)(4)(i)(G) of this section) by computing the 
weighted averages of the SBIs that applied to the formerly separate zone 
categories, weighted by the revenue weights of the respective services 
included in the zone categories.
    (j)-(k) [Reserved]
    (l) Average Traffic Sensitive Revenues. (1) In the July 1, 2000 
annual filing, price cap local exchange carriers will make an additional 
reduction to rates comprising ATS charge, and to associated SBI upper 
limits and PCIs. This reduction will be calculated to be the amount that 
would be necessary to achieve a total $2.1 billion reduction in carrier 
common line and ATS rates by all price cap local exchange carriers, 
compared with those rates as they existed on June 30, 2000 using 2000 
annual filing base period demand.
    (i) The net change in revenue associated with Carrier Common Line 
Rate elements resulting from:
    (A) The removal from access of price cap local exchange carrier 
contributions to the Federal universal service mechanisms;
    (B) Price cap local exchange carrier receipts of interstate access 
universal service support pursuant to subpart J of part 54;
    (C) Changes in End User Common Line Charges and PICC rates;
    (D) Changes in Carrier Common Line charges due to GDP-PI--X 
targeting for $0.0095 filing entities.
    (ii) Reductions in Average Traffic Sensitive charges resulting from:
    (A) Targeting of the application of the (GDP-PI--X) portion of the 
formula in Sec. 61.45(b), and any applicable ``g'' adjustments;

[[Page 191]]

    (B) The removal from access of price cap local exchange carrier 
contributions to the Federal universal service mechanisms;
    (C) Additional ATS charge reductions defined in paragraph (2) of 
this section.
    (2) Once the reductions in paragraph (l)(1)(i) and paragraphs 
(l)(1)(ii)(A) and (l)(1)(ii)(B) of this section are identified, the 
difference between those reductions and $2.1 billion is the total amount 
of additional reductions that would be made to ATS rates of price cap 
local exchange carriers. This amount will then be restated as the 
percentage of total price cap local exchange carrier Local Switching 
revenues as of June 30, 2000 using 2000 annual filing base period demand 
(``June 30 Local Switching revenues'') necessary to yield the total 
amount of additional reductions and taking into account the fact that, 
if participating, a price cap local exchange carrier would not reduce 
ATS rates below its Target Rate as set forth in Sec. 61.3(qq). Each 
price cap local exchange carrier then reduces ATS rate elements, and 
associated SBI upper limits and PCIs, by a dollar amount equivalent to 
the percentage times the June 30 Local Switching revenues for that 
filing entity, provided that no price cap local exchange carrier shall 
be required to reduce its ATS rates below its Target Rate as set forth 
in Sec. 61.3(qq). Each carrier can take its additional reductions 
against any of the ATS rate elements, provided that at least a 
proportional share must be taken against Local Switching rates.
    (m) Pooled Local Switching Revenues. (1) Price cap local exchange 
carriers are permitted to pool local switching revenues in their CMT 
basket under one of the following conditions.
    (i) Any price cap local exchange carrier that would otherwise have 
July 1, 2000 price cap reductions as a percentage of Base Period Price 
Cap Revenues at the holding company level greater than the industry wide 
total July 1, 2000 price cap revenue reduction as a percentage of Base 
Period Price Cap Revenues may elect temporarily to pool the amount of 
the additional reductions above 25% of the Local Switching element 
revenues necessary to yield that carrier's proportionate share of a 
total $2.1 billion reduction in switched access usage rates on July 1, 
2000. The basis of the reduction calculation will be R at 
PCIt-1 for the upcoming tariff year. The percentage 
reductions per line amounts will be calculated as follows: (Total Price 
Cap Revenue Reduction / Base Period Price Cap Revenues)
    Pooled local switching revenue for each filing entity within a 
holding company that qualifies under this paragraph (i) will continue 
until such pooled revenues are eliminated under this paragraph. 
Notwithstanding the provisions of Sec. 61.45(b)(1), once the Average 
Traffic Sensitive (ATS) rate reaches the applicable Target Rate as set 
forth in Sec. 61.3(qq), the Targeted Revenue Differential as defined in 
Sec. 61.45(i) shall be targeted to reducing pooled local switching 
revenue until the pooled local switching revenue is eliminated. 
Thereafter, the X-factor for these baskets will be determined in 
accordance with Sec. 61.45(b)(1).
    (ii) Price cap local exchange carriers other than the Bell companies 
and GTE with at least 20% of total holding company lines operated by 
companies that as of December 31, 1999 were certified to the Commission 
as rural carriers, may elect to pool up to the following amounts:
    (A) For a price cap holding company's predominantly non-rural filing 
entities (i.e., filing entities within which more than 50% of all lines 
are operated by telephone companies other than those that as of December 
31, 1999 were certified to the Commission as rural telephone companies), 
the amount of the additional reductions to Average Traffic Sensitive 
Charge rates as defined in paragraph (l)(2) of this section, to the 
extent such reductions exceed 25% of the Local Switching element 
revenues (measured in terms of June 30, 2000 rates times 1999 base 
period demand);
    (B) For a price cap holding company's predominantly rural filing 
entities (i.e., filing entities with greater than 50% of lines operated 
by telephone companies that as of December 31, 1999 were certified to 
the Commission as rural telephone companies), the amount of the 
additional reductions to Average Traffic Sensitive Charge rates

[[Page 192]]

as defined in paragraph (l)(2) of this section.
    (2) Allocation of Pooled Local Switching Revenue to Certain CMT 
Elements
    (i) The pooled local switching revenue for each filing entity is 
shifted to the CMT basket within price caps. Pooled local switching 
revenue will not be included in calculations to determine the 
eligibility for interstate access universal service funding.
    (ii) Pooled local switching revenue will be capped on a revenue per 
line basis.
    (iii) Pooled local switching revenue is included in the total 
revenue for the CMT basket in calculating the X-factor reduction 
targeted to the traffic sensitive rate elements, and for companies 
qualified under paragraph (m)(1)(i) of this section, to pooled elements 
after the Average Traffic Sensitive Charge reaches the target level. For 
the purpose of targeting X-factor reductions, companies that allocate 
pooled local switching revenue to other filing entities pursuant to 
paragraph (m)(2)(vii) of this section shall include pooled local 
switching revenue in the total revenue of the CMT basket of the filing 
entity from which the pooled local switching revenue originated.
    (iv) Pooled local switching revenue shall be kept separate from CMT 
revenue in the CMT basket. CMT rate elements for each filing entity 
shall first be set based on CMT revenue per line without regard to the 
presence of pooled local switching revenue for each filing entity.
    (v) If the rates generated without regard to the presence of pooled 
local switching revenue for multi-line business PICC and/or multi-line 
business SLC are below the nominal caps of $4.31 and $9.20, 
respectively, pooled amounts can be added to these rate elements to the 
extent permitted by the nominal caps.
    (vi) Notwithstanding the provisions of Sec. 69.152(k) of this 
chapter, pooled local switching revenue is first added to the multi-line 
business SLC until the rate equals the nominal cap ($9.20) or the pooled 
local switching revenue is fully allocated. If pooled local switching 
revenue remains after applying amounts to the multi-line business SLC, 
notwithstanding the provisions of Sec. 69.153 of this chapter, the 
remaining pooled local switching revenue may be added to the multi-line 
business PICC until the rate equals the nominal cap ($4.31) or the 
pooled local switching revenue is fully allocated. Unallocated pooled 
local switching revenue may still remain. For companies pooling pursuant 
to paragraph (m)(1)(i) of this section, these unallocated amounts may 
not be recovered from the CCL charge, the primary residential and 
single-line business SLC, a non-primary residential SLC, or from CMT 
elements in any other filing entity.
    (vii) For companies pooling pursuant to paragraph (m)(1)(ii) of this 
section, pooled local switching revenue that can not be allocated to the 
multi-line business PICC and multi-line business SLC rates within an 
individual filing entity may not be recovered from the CCL charge, 
primary residential and single-line business SLC or residential/single-
line business SLC charges, but may be allocated to other filing entities 
within the holding company, and collected by adding these amounts to the 
multi-line business PICC and multi-line business SLC rates. The 
allocation of pooled local switching revenue among filing entities will 
be re-calculated at each annual filing. In subsequent annual filings, 
pooled local switching revenue that was allocated to another filing 
entity will be reallocated to the filing entity from where it 
originated, to the full extent permitted by the nominal caps of $9.20 
and $4.31.
    (viii) Notwithstanding the provisions of Sec. 69.152(k) of this 
chapter, these unallocated local switching revenues that cannot be 
recovered fully pursuant to paragraph (m)(2)(vii) of this section are 
first added to the multi-line business SLC of other filing entities 
until the resulting rate equals the nominal cap ($9.20) or the pooled 
local switching revenue for the holding company is fully allocated. If 
the pooled local switching revenue can be fully allocated to the multi-
line business SLC, the amount is distributed to each filing entity with 
a rate below the nominal cap ($9.20) based on its below-cap multi-line 
business SLC revenue as a

[[Page 193]]

percentage of the total holding company's below-cap multi-line business 
SLC revenue.
    (ix) If pooled local switching revenue remains after applying 
amounts to the multi-line business SLC of all filing entities in the 
holding company, pooled local switching revenue may be added to the 
multi-line business PICC of other filing entities. Notwithstanding the 
provisions of Sec. 69.153 of this chapter, the remaining pooled local 
switching revenue is distributed to each filing entity with a rate below 
the nominal cap ($4.31) based on its below-cap multi-line business PICC 
revenue as a percentage of the total holding company's below-cap multi-
line business PICC revenue.
    (x) If pooled local switching revenue is added to the multi-line 
business SLC but not to the multi-line business PICC for a filing entity 
that qualified to deaverage SLCs without regard to pooled local 
switching revenue, the resulting SLC rates can still be deaveraged. 
Total pooled local switching revenue is added to the deaveraged zone 1 
multi-line business SLC rate until the per line rate in zone 1 equals 
the rate in zone 2 or until the pooled local switching revenue is fully 
allocated to the deaveraged multi-line business SLC rate for zone 1. If 
pooled local switching revenue remains after the rate in zone 1 equals 
zone 2, the deaveraged rates of zone 1 and zone 2 are increased until 
the pooled local switching revenue is fully allocated to the deaveraged 
multi-line business SLC rates of zone 1 and 2 or until those rates reach 
the zone 3 multi-line business SLC rate level. This process continues 
until pooled local switching revenue is fully allocated to the zone 
deaveraged rates.
    (n) Establishment of the special access basket, effective July 1, 
2000.
    (1) On the effective date, the PCI value for the special access 
basket, as defined in Sec. 61.42(d)(5) shall be equal to the PCI for the 
trunking basket on the day preceding the establishment of the special 
access basket.
    (2) On the effective date, the API value for the special access 
basket, as defined in Sec. 61.42(d)(5) shall be equal to the API for the 
trunking basket on the day preceding the establishment of the special 
access basket.
    (3) Service Category, Subcategory, and Density Zone SBIs and Upper 
Limits.
    (i) Interconnection, Tandem Switched Transport, and Signalling 
Interconnec- tion will retain the SBIs and upper limits and remain in 
the trunking basket.
    (ii) Audio/Video and Wideband will retain the SBIs and upper limits 
and be moved into the special access basket.
    (iii) For Voice Grade, the SBIs and upper limits in both baskets 
will be equal to the SBIs and upper limits in the existing trunking 
basket on the day preceding the establishment of the special access 
basket. Voice Grade density zones in the trunking basket will retain 
their indices and upper limits. Voice Grade density zones will be 
initialized in the special access basket when services are first offered 
in them.
    (iv) For High Cap/DDS, DS1, and DS3 category and subcategories, the 
SBIs and upper limits in both baskets will be equal to the SBIs and 
upper limits in the existing trunking basket on the day preceding the 
establishment of the special access basket. SBIs and upper limits for 
services that are in both combined density zones and either DTT/EF or 
special access density zones will be calculated by using weighted 
averages of the indices in the affected zones.
    (v) For each DTT/EF-related zone remaining in the trunking basket, 
the values will be calculated by taking the sum of the products of the 
DTT/EF revenues times the DTT/EF index (or upper limit) and the DTT/EF-
related revenues in the combined zone times the combined index (or upper 
limit), and dividing by the total DTT/EF-related revenues for that zone.
    (vi) For each special access-related zone in the special access 
basket, the values will be calculated by taking the sum of the products 
of the special access revenues times the special access index (or upper 
limit) and the special access-related revenues in the combined zone 
times the combined index (or upper limit), and dividing by the total 
special access-related revenues for that zone.

[[Page 194]]

    (o) Treatment of acquisitions of exchanges with different ATS Target 
Rates as set forth in Sec. 61.3(qq):
    (1) In the event that a price cap local exchange carrier acquires a 
filing entity or portion thereof from a price cap local exchange carrier 
after July 1, 2000, and the price cap local exchange carrier did not 
have a binding and executed contract to purchase that filing entity or 
portion thereof as of April 1, 2000, those properties retain their pre-
existing Target Rates as set forth in Sec. 61.3(qq). If those properties 
are merged into a filing entity with a different Target Rate as set 
forth in Sec. 61.3(qq), the Target Rate as set forth in Sec. 61.3(qq) 
for the merged filing entity will be the weighted average of the Target 
Rates as set forth in Sec. 61.3(qq) for the properties being combined 
into a single filing entity, with the average weighted by local 
switching minutes. When a property acquired as a result of a contract 
for purchase executed after April 1, 2000 is merged with $0.0095 Target 
Rate properties, the obligation to apply price cap reductions to reduce 
CCL, pursuant to Sec. 61.45(b)(iii) does not apply to the properties 
purchased under contracts executed after April 1, 2000, but continues to 
apply to the other properties.
    (2) For sale of properties for which a holding company was, as of 
April 1, 2000, under a binding and executed contract to purchase but 
which close after June 30, 2000, but during tariff year 2000, and that 
are subject to the $0.0095 Target Rate as set forth in Sec. 61.3(qq), 
the Average Traffic Sensitive Rate charged by the purchaser for that 
property will be the greater of $0.0095 or the Average Traffic Sensitive 
Rate for that property.

[54 FR 19843, May 8, 1989, as amended at 55 FR 42384, Oct. 19, 1990; 56 
FR 21617, May 10, 1991; 56 FR 55239, Oct. 25, 1991; 59 FR 10302, Mar. 4, 
1994; 60 FR 19528, Apr. 19, 1995; 60 FR 52346, Oct. 6, 1995; 62 FR 
31932, June 11, 1997; 64 FR 46590, Aug. 26, 1999; 65 FR 38699, June 21, 
2000; 65 FR 57742, 57743, Sept. 26, 2000]



Sec. 61.49  Supporting information to be submitted with letters of transmittal for tariffs of carriers subject to price cap regulation.

    (a) Each price cap tariff filing must be accompanied by supporting 
materials sufficient to calculate required adjustments to each PCI, API, 
and SBI pursuant to the methodologies provided in Secs. 61.45, 61.46, 
and 61.47, as applicable.
    (b) Each price cap tariff filing that proposes rates that are within 
applicable bands established pursuant to Sec. 61.47, and that results in 
an API value that is equal to or less than the applicable PCI value, 
must be accompanied by supporting materials sufficient to establish 
compliance with the applicable bands, and to calculate the necessary 
adjustment to the affected APIs and SBIs pursuant to Secs. 61.46 and 
61.47, respectively.
    (c) Each price cap tariff filing that proposes rates above the 
applicable band limits established in Secs. 61.47 (e) must be 
accompanied by supporting materials establishing substantial cause for 
the proposed rates.
    (d) Each price cap tariff filing that proposes rates that will 
result in an API value that exceeds the applicable PCI value must be 
accompanied by:
    (1) An explanation of the manner in which all costs have been 
allocated among baskets; and
    (2) Within the affected basket, a cost assignment slowing down to 
the lowest possible level of disaggregation, including a detailed 
explanation of the reasons for the prices of all rate elements to which 
costs are not assigned.
    (e) Each price cap tariff filing that proposes restructuring of 
existing rates must be accompanied by supporting materials sufficient to 
make the adjustments to each affected API and SBI required by 
Secs. 61.46(c) and 61.47(d), respectively.
    (f)(1) [Reserved]
    (2) Each tariff filing submitted by a price cap LEC that introduces 
a new loop-based service, as defined in Sec. 61.3(pp) of this part--
including a restructured unbundled basic service element (BSE), as 
defined in Sec. 69.2(mm) of this chapter, that constitutes a new loop-
based service--that is or will later be included in a basket, must be 
accompanied by cost data sufficient to establish that the new loop-based 
service or unbundled BSE will not recover more than a just and 
reasonable portion of the carrier's overhead costs.

[[Page 195]]

    (3) A price cap LEC may submit without cost data any tariff filings 
that introduce new services, other than loop-based services.
    (4) A price cap LEC that has removed its corridor or interstate 
intraLATA toll services from its interexchange basket pursuant to 
Sec. 61.42(d)(4)(ii), may submit its tariff filings for corridor or 
interstate intraLATA toll services without cost data.
    (g) Each tariff filing submitted by a local exchange carrier subject 
to price cap regulation that introduces a new loop-based service or a 
restructured unbundled basic service element (BSE), as defined in 
Sec. 69.2(mm) of this chapter, that is or will later be included in a 
basket, or that introduces or changes the rates for connection charge 
subelements for expanded interconnection, as defined in Sec. 69.121 of 
this chapter, must also be accompanied by:
    (1) The following, including complete explanations of the bases for 
the estimates.
    (i) A study containing a projection of costs for a representative 12 
month period; and
    (ii) Estimates of the effect of the new tariff on the traffic and 
revenues from the service to which the new tariff applies, the carrier's 
other service classifications, and the carrier's overall traffic and 
revenues. These estimates must include the projected effects on the 
traffic and revenues for the same representative 12 month period used in 
paragraph (g)(1)(i) of this section.
    (2) Working papers and statistical data. (i) Concurrently with the 
filing of any tariff change or tariff filing for a service not 
previously offered, the Chief, Tariff and Pricing Analysis Branch must 
be provided two sets of working papers containing the information 
underlying the data supplied in response to paragraph (h)(1) of this 
section, and a clear explanation of how the working papers relate to 
that information.
    (ii) All statistical studies must be submitted and supported in the 
form prescribed in Sec. 1.363 of the Commission's rules.
    (h) Each tariff filing submitted by a local exchange carrier subject 
to price cap regulation that introduces or changes the rates for 
connection charge subelements for expanded interconnection, as defined 
in Sec. 69.121 of this chapter, must be accompanied by cost data 
sufficient to establish that such charges will not recover more than a 
just and reasonable portion of the carrier's overhead costs.
    (i) [Reserved]
    (j) For a tariff that introduces a system of density pricing zones, 
as described in Sec. 69.123 of this chapter, the carrier must, before 
filing its tariff, submit a density pricing zone plan including, inter 
alia, documentation sufficient to establish that the system of zones 
reasonably reflects cost-related characteristics, such as the density of 
total interstate traffic in central offices located in the respective 
zones, and receive approval of its proposed plan.
    (k) In accordance with Secs. 61.41 through 61.49, local exchange 
carriers subject to price cap regulation that elect to file their annual 
access tariff pursuant to section 204(a)(3) of the Communications Act 
shall submit supporting material for their interstate annual access 
tariffs, absent rate information, 90 days prior to July 1 of each year.
    (l) On each page of cost support material submitted pursuant to this 
section, the carrier shall indicate the transmittal number under which 
that page was submitted.

[54 FR 19843, May 8, 1989, as amended at 55 FR 42384, Oct. 19, 1990; 56 
FR 5956, Feb. 14, 1991; 56 FR 21617, May 10, 1991; 56 FR 33880, July 24, 
1991; 57 FR 37730, Aug. 20, 1992; 57 FR 54331, Nov. 18, 1992; 58 FR 
17167, Apr. 1, 1993; 58 FR 38536, July 19, 1993; 58 FR 48762, Sept. 17, 
1993; 59 FR 10304, Mar. 4, 1994; 62 FR 4659, Jan. 31, 1997; 62 FR 5778, 
Feb. 7, 1997; 62 FR 42218, Aug. 6, 1997; 64 FR 46590, 46593, Aug. 26, 
1999; 64 FR 51266, Sept. 22, 1999]



Secs. 61.50-61.51  [Reserved]



Sec. 61.52  Form, size, type, legibility, etc.

    (a) All tariff publications must be in loose-leaf form of size A4 
(21 cm x 29.7 cm) or 8.5 x 11 inches (21.6 cm x 27.9 cm), and must be 
plainly printed in black print on white paper of durable quality. Less 
than 6-point type may not be used. Erasures or alterations in writing 
must not be made in any tariff publication filed with the Commission or 
in those copies posted for public convenience. A margin of no less than 
2.5

[[Page 196]]

cm (1 inch) in width must be allowed at the left edge of every tariff 
publication.
    (b) Pages of tariffs must be printed on one side only, and must be 
numbered consecutively and designated as ``Original title page,'' 
``Original page 1,'' ``Original page 2,'' etc.
    (1) All such pages must show, in the upper left-hand corner the name 
of the issuing carrier; in the upper right-hand corner the FCC number of 
the tariff, with the page designation directly below; in the lower left-
hand corner the issued date; in the lower right-hand corner the 
effective date; and at the bottom, center, the street address of the 
issuing officer. The carrier must also specify the issuing officer's 
title either at the bottom center of all tariff pages, or on the title 
page and check sheet only.
    (2) As an alternative, the issuing carrier may show in the upper 
left-hand corner the name of the issuing carrier, the title and street 
address of the issuing officer, and the issued date; and in the upper 
right-hand corner the FCC number of the tariff, with the page 
designation directly below, and the effective date. The carrier must 
specify the issuing officer's title in the upper left-hand corner of 
either all tariff pages, or on the title page and check sheet only. A 
carrier electing to place the information at the top of the page should 
annotate the bottom of each page to indicate the end of the material, 
e.g., a line, or the term ``Printed in USA,'' or ``End''.
    (3) Only one format may be employed in a tariff publication.
    (c) Incumbent local exchange carriers shall file all tariff 
publications and associated documents, such as transmittal letters, 
requests for special permission, and supporting information, 
electronically in accordance with the requirements set forth in 
Sec. 61.13 through Sec. 61.17.

[49 FR 40869, Oct. 18, 1984, as amended at 58 FR 44906, Aug. 25, 1993; 
62 FR 5778, Feb. 7, 1997; 63 FR 35541, June 30, 1998]



Sec. 61.54  Composition of tariffs.

    (a) Tariffs must contain in consecutive order: A title page; check 
sheet; table of contents; list of concurring, connecting, and other 
participating carriers; explanation of symbols and abbreviations; 
application of tariff; general rules (including definitions), 
regulations, exceptions and conditions; and rates. If the issuing 
carrier elects to add a section assisting in the use of the tariff, it 
should be placed immediately after the table of contents.
    (b) The title page of every tariff and supplement must show:
    (1) FCC number, indication of cancellations. In the upper right-hand 
corner, the designation of the tariff or supplement as ``FCC No. -------
-,'' or ``Supplement No. -------- to FCC No. --------,'' and immediately 
below, the FCC number or numbers of tariffs or supplements cancelled 
thereby.
    (2) Name of carrier, class of service, geographical application, 
means of transmission. The exact name of the carrier, and such other 
information as may be necessary to identify the carrier issuing the 
tariff publication; a brief statement showing each class of service 
provided; the geographical application; and the type of facilities used 
to provide service.
    (3) Expiration date. Subject to Sec. 61.59, when the entire tariff 
or supplement is to expire with a fixed date, the expiration date must 
be shown in connection with the effective date in the following manner. 
Changes in expiration date must be made pursuant to the notice 
requirements of Sec. 61.58, unless otherwise authorized by the 
Commission.

    Expires at the end of ---- (date) unless sooner canceled, changed, 
or extended.

    (4) Title and address of issuing officer. The title and street 
address of the officer issuing the tariff or supplement in the format 
specified in Sec. 61.52.
    (5) Revised title page. When a revised title page is issued, the 
following notation must be shown in connection with its effective date:

Original tariff effective -------------------- (here show the effective 
date of the original tariff).

    (c)(1)(i) The page immediately following the title page must be 
designated as ``Original page 1'' and captioned ``Check Sheet.'' When 
the original tariff is filed, the check sheet must show the number of 
pages contained in the tariff. For example, ``Page 1 to 150, inclusive, 
of this tariff are effective as

[[Page 197]]

of the date shown.'' When new pages are added, they must be numbered in 
continuing sequence, and designated as ``Original page -------- .'' For 
example, when the original tariff filed has 150 pages, the first page 
added after page 150 is to be designated as ``Original page 151,'' and 
the foregoing notation must be revised to include the added pages.
    (ii) Alternatively, the carrier is permitted to number its tariff 
pages, other than the check sheet, to reflect the section number of the 
tariff as well as the page. For example, under this system, pages in 
section 1 of the tariff would be numbered 1-1, 1-2, etc., and pages in 
section 2 of the tariff would be numbered 2-1, 2-2, etc. Issuing 
carriers shall utilize only one page numbering system throughout its 
tariff.
    (2) If pages are to be inserted between numbered pages, each such 
page must be designated as an original page and must bear the number of 
the immediately preceding page followed by an alpha or numeric suffix. 
For example, when two new pages are to be inserted between pages 44 and 
45 of the tariff, the first inserted page must be designated as Original 
page 44A or 44.1 and the second inserted page as Original page 44B or 
44.2. Issuing carriers may not utilize both the alpha and numeric 
systems in the same publication.
    (3)(i) When pages are revised, when new pages (including pages with 
letter or numeric suffix as set forth above) are added to the tariff, or 
when supplements are issued, the check sheet must be revised 
accordingly. Revised check sheets must indicate with an asterisk the 
specific pages added or revised. In addition to the notation in (1), the 
check sheet must list, under the heading ``The original and revised 
pages named below (and Supplement No. --------) contain all changes from 
the original tariff that are in effect on the date shown,'' all original 
pages in numerical order that have been added to the tariff and the 
pages which have been revised, including the revision number. For 
example:

------------------------------------------------------------------------
                                               Number of revision except
                     Page                             as indicated
------------------------------------------------------------------------
Title........................................  1st
1............................................  *8th
3............................................  5th
5A...........................................  *Orig.
10...........................................  *8th
151..........................................  Orig.
------------------------------------------------------------------------
*New or Revised page.

    (ii) On each page, the carrier shall indicate the transmittal number 
under which that page was submitted.
    (4) Changes in, and additions to tariffs must be made by reprinting 
the page upon which a change or addition is made. Such changed page is 
to be designated as a revised page, cancelling the page which it amends. 
For example, ``First revised page 1 cancels original page 1,'' or 
``Second revised page 2 cancels first revised page 2,'' etc. When a 
revised page omits rates or regulations previously published on the page 
which it cancels, but such rates or regulations are published on another 
page, the revised page must make specific reference to the page on which 
the rates or regulations will be found. This reference must be 
accomplished by inserting a sentence at the bottom of the revised page 
that states ``Certain rates (or regulations) previously found on this 
page can now be found on page ------.'' In addition, the page on which 
the omitted material now appears must bear the appropriate symbol 
opposite such material, and make specific reference to the page from 
which the rates or regulations were transferred. This reference must be 
accomplished by inserting a sentence at the bottom of the other page 
that states ``Certain rates (or regulations) on this page formerly 
appeared on page --------.''
    (5) Rejected pages must be treated as indicated in Sec. 61.69.
    (d) Table of contents. The table of contents must contain a full and 
complete statement showing the exact location and specifying the page or 
section and page numbers, where information by subjects under general 
headings will be found. If a tariff contains so small a volume of matter 
that its title page or

[[Page 198]]

its interior arrangement plainly discloses its contents, the table of 
contents may be omitted.
    (e) Tariff User's guide. At its option, a carrier may include a 
section explaining how to use the tariff.
    (f) List of concurring carriers. This list must contain the exact 
name or names of carriers concurring in the tariff, alphabetically 
arranged, and the name of the city or town in which the principal office 
of every such carrier is located. If there are no concurring carriers, 
then the statement ``no concurring carriers'' must be made at the place 
where the names of the concurring carriers would otherwise appear. If 
the concurring carriers are numerous, their names may be stated in 
alphabetical order in a separate tariff filed with the Commission by the 
issuing carrier. Specific reference to such separate tariff by FCC 
number must be made in the tariff at the place where such names would 
otherwise appear.
    (g) List of connecting carriers. This list must contain the exact 
name or names of connecting carriers, alphabetically arranged, for which 
rates or regulations are published in the tariff, and the name of the 
city or town in which the principal office of every such carrier is 
located. If there are no connecting carriers, then the statement ``no 
connecting carriers'' must be made at the place where their names would 
otherwise appear. If connecting carriers are numerous, their names may 
be stated in alphabetical order in a separate tariff filed with the 
Commission by the issuing carrier. Specific reference to such separate 
tariff by FCC number must be made in the tariff at the place where such 
names would otherwise appear.
    (h) List of other participating carriers. This list must contain the 
exact name of every other carrier subject to the Act engaging or 
participating in the communication service to which the tariff or 
supplement applies, together with the name of the city or town in which 
the principal office of such carrier is located. If there is no such 
other carrier, then the statement ``no participating carriers'' must be 
made at the place where the names of such other carriers would otherwise 
appear. If such other carriers are numerous, their names may be stated 
in alphabetical order in a separate tariff filed with the Commission by 
the issuing carrier. Specific reference must be made in the tariff at 
the place where such names would otherwise appear. The names of 
concurring and connecting carriers properly listed in a tariff published 
by any other participating carrier need not be repeated in this list.
    (i)(1) Symbols, reference marks, abbreviations. The tariff must 
contain an explanation of symbols, reference marks, and abbreviations of 
technical terms used. The following symbols used in tariffs are reserved 
for the purposes indicated below:

R  to signify reduction.
I  to signify increase.
C  to signify changed regulation.
T  to signify a change in text but no change in rate or regulation.
S  to signify reissued matter.
M  to signify matter relocated without change.
N  to signify new rate or regulation.
D  to signify discontinued rate or regulation.
Z  to signify a correction.


    (2) The uniform symbols must be used as follows.
    (i) When a change of the same character is made in all or in 
substantially all matter in a tariff, it may be indicated at the top of 
the title page of the tariff or at the top of each affected page, in the 
following manner: ``All rates in this tariff are increases,'' or, ``All 
rates on this page are reductions, except as otherwise indicated.''
    (ii) When a change of the same character is made in all or 
substantially all matters on a page or supplement, it may be indiated at 
the top of the page or supplement in the following manner: All rates on 
this page (or supplement) are increases,'' or, ``All rates on this page 
(or supplement) are reductions except as otherwise indicated.''
    (3) Items which have not been in effect 30 days when brought forward 
on revised pages must be shown as reissued, in the manner prescribed in 
Sec. 61.54(i)(1). The number and original effective date of the tariff 
publication in which the matter was originally published must be 
associated with the reissued matter. Items which have been in effect 30 
days or more and are

[[Page 199]]

brought forward without change on revised pages must not be shown as 
reissued items.
    (j) Rates and general rules, regulations, exceptions and conditions. 
The general rules (including definitions), regulations, exceptions, and 
conditions which govern the tariff must be stated clearly and 
definitely. All general rules, regulations, exceptions or conditions 
which in any way affect the rates named in the tariff must be specified. 
A special rule, regulation, exception or condition affecting a 
particular item or rate must be specifically referred to in connection 
with such item or rate. Rates must be expressed in United States 
currency, per chargeable unit of service for all communication services, 
together with a list of all points of service to and from which the 
rates apply. They must be arranged in a simple and systematic manner. 
Complicated or ambiguous terminology may not be used, and no rate, rule, 
regulation, exception or condition shall be included which in any way 
attempts to substitute a rate, rule, regulation, exception or condition 
named in any other tariff.

[49 FR 40869, Oct. 18, 1984, as amended at 64 FR 46591, Aug. 26, 1999]



Sec. 61.55  Contract-based tariffs.

    (a) This section shall apply to price cap LECs permitted to offer 
contract-based tariffs under Sec. 69.727(a) of this chapter.
    (b) Composition of contract-based tariffs shall comply with 
Secs. 61.54(b) through (i).
    (c) Contract-based tariffs shall include the following:
    (1) The term of contract, including any renewal options;
    (2) A brief description of each of the services provided under the 
contract;
    (3) Minimum volume commitments for each service;
    (4) The contract price for each service or services at the volume 
levels committed to by the customers;
    (5) A general description of any volume discounts built into the 
contract rate structure; and
    (6) A general description of other classifications, practices, and 
regulations affecting the contract rate.

[64 FR 51266, Sept. 22, 1999]



Sec. 61.58  Notice requirements.

    (a) Every proposed tariff filing must bear an effective date and, 
except as otherwise provided by regulation, special permission, or 
Commission order, must be made on at least the number of days notice 
specified in this section.
    (1) Notice is accomplished by filing the proposed tariff changes 
with the Commission. Any period of notice specified in this section 
begins on and includes the date the tariff is received by the 
Commission, but does not include the effective date. If a tariff filing 
proposes changes governed by more than one of the notice periods listed 
below, the longest notice period will apply. In computing the notice 
period required, all days including Sundays and holidays must be 
counted.
    (2)(i) Local exchange carriers may file tariffs pursuant to the 
streamlined tariff filing provisions of section 204(a)(3) of the 
Communications Act. Such a tariff may be filed on 7 days' notice if it 
proposes only rate decreases. Any other tariff filed pursuant to section 
204(a)(3) of the Communications Act, including those that propose a rate 
increase or any change in terms and conditions, shall be filed on 15 
days' notice. Any tariff filing made pursuant to section 204(a)(3) of 
the Communications Act must comply with the applicable cost support 
requirements specified in this part.
    (ii) Local exchange carriers may elect not to file tariffs pursuant 
to section 204(a)(3) of the Communications Act. Any such tariffs shall 
be filed on at least 16 days' notice.
    (iii) Except for tariffs filed pursuant to section 204(a)(3) of the 
Communications Act, the Chief, Wireline Competition Bureau, may require 
the deferral of the effective date of any filing made on less than 120 
days' notice, so as to provide for a maximum of 120 days' notice, or of 
such other maximum period of notice permitted by section 203(b) of the 
Communications Act, regardless of whether petitions under Sec. 1.773 of 
this chapter have been filed.

[[Page 200]]

    (3) Tariff filings proposing corrections or voluntarily deferring 
the effective date of a pending tariff revision must be made on at least 
3 days' notice, and may be filed notwithstanding the provisions of 
Sec. 61.59. Corrections to tariff materials not yet effective cannot 
take effect before the effective date of the original material. 
Deferrals must take effect on or before the current effective date of 
the pending tariff revisions being deferred.
    (4) This subsection applies only to dominant carriers. If the tariff 
publication would increase any rate or charge, or would effectuate and 
authorized discountinuance, reduction or other impairment of service to 
any customer, the offering carrier must inform the affected customers of 
the content of the tariff publication. Such notification should be made 
in a form appropriate to the circumstance, and may include written 
notification, personal contact, or advertising in newspapers of general 
circulation.
    (b) Tariffs for new services filed by price cap local exchange 
carriers shall be filed on at least one day's notice.
    (c) Contract-based tariffs filed by price cap local exchange 
carriers pursuant to Sec. 69.727(a) of this chapter shall be filed on at 
least one day's notice.
    (d)(1) A local exchange carrier that is filing a tariff revision to 
remove its corridor or interstate intraLATA toll services from its 
interexchange basket pursuant to Sec. 61.42(d)(4)(ii) shall submit such 
filing on at least fifteen days' notice.
    (2) A local exchange carrier that has removed its corridor and 
interstate intraLATA toll services from its interexchange basket 
pursuant to Sec. 61.42(d)(4)(ii) shall file subsequent tariff filings 
for corridor or interstate intraLATA toll services on at least one day's 
notice.
    (e) Non-price cap carriers and/or services. (1) Tariff filings in 
the instances specified in paragraphs (d)(1) (i), (ii), and (iii) of 
this section must be made on at least 15 days' notice.
    (i) Tariffs filed in the first instance by new carriers.
    (ii) Tariffs filings involving new rates and regulations not 
previously filed at, from, to or via points on new lines; at, from to or 
via new radio facilities; or for new points of radio communication.
    (iii) Tariff filings involving a change in the name of a carrier, a 
change in Vertical or Horizontal coordinates (or other means used to 
determine airline mileages), a change in the lists of mileages, a change 
in the lists of connecting, concurring or other participating carriers, 
text changes, or the imposition of termination charges calculated from 
effective tariff provisions. The imposition of termination charges does 
not include the initial filing of termination liability provisions.
    (2) Tariff filings involving a change in rate structure, a new 
offering, or a rate increase must be made on at least 45 days' notice.
    (3) Alascom, Inc. shall file its annual tariff revisions for its 
Common Carrier Services (Alascom Tariff F.C.C No. 11) on at least 35 
days' notice.
    (4) All tariff filings not specifically assigned a different period 
of public notice in this part must be made on at least 35 days' notice.
    (f) [Reserved]

[49 FR 40869, Oct. 18, 1984, as amended at 54 FR 19844, May 8, 1989; 55 
FR 42384, Oct. 19, 1990; 56 FR 1500, Jan. 15, 1991; 56 FR 5956, Feb. 14, 
1991; 56 FR 55239, Oct. 25, 1991; 58 FR 36149, July 6, 1993; 59 FR 
10304, Mar. 4, 1994; 62 FR 5778, Feb. 7, 1997; 64 FR 46591, Aug. 26, 
1999; 64 FR 51266, Sept. 22, 1999; 67 FR 13228, Mar. 21, 2002]



Sec. 61.59  Effective period required before changes.

    (a) Except as provided in Sec. 61.58(a)(3) or except as otherwise 
authorized by the Commission, new rates or regulations must be effective 
for at least 30 days before a dominant carrier will be permitted to make 
any change.
    (b) Changes to rates and regulations that have not yet become 
effective, i.e., are pending, may not be made unless the effective date 
of the proposed changes is at least 30 days after the scheduled 
effective date of the pending revisions.
    (c) Changes to rates and regulations that have taken effect but have 
not been in effect for at least 30 days may not be made unless the 
scheduled effective date of the proposed changes is at

[[Page 201]]

least 30 days after the effective date of the existing regulations.

[64 FR 46592, Aug. 26, 1999]



   Subpart F--Specific Rules for Tariff Publications of Dominant and 
                          Nondominant Carriers



Sec. 61.66  Scope.

    The rules in this subpart apply to all carriers, unless otherwise 
noted.

[64 FR 46592, Aug. 26, 1999]



Sec. 61.68  Special notations.

    (a) A tariff filing must contain a statement of the authority for 
any matter to be filed on less than the notice required in Sec. 61.58. 
The following must be used:

    Issued on not less than -- days' notice under authority of -- 
(specific reference to the special permission, decision, order or 
section of these rules).


If all the matter in a tariff publication is to become effective on less 
than the notice required in Sec. 61.58, specific reference to the 
Commission authority must be shown on the title page. If only a part of 
the tariff publication is to become effective on less than the notice 
required in Sec. 61.58, reference to the Commission authority must 
appear on the same page(s), and be associated with the pertinent matter.
    (b) When a portion of any tariff publication is issued in order to 
comply with the Commission order, the following notation must be 
associated with that portion of the tariff publication:

    In compliance with the order of the Federal Communications 
Commission in -- (a specific citation to the applicable order should be 
made).



Sec. 61.69  Rejection.

    When a tariff publication is rejected by the Commission, its number 
may not be used again. This includes, but is not limited to, such 
publications as tariff numbers or specific page revision numbers. The 
rejected tariff publication may not be referred to as either cancelled 
or revised. Within five business days of the release date of the 
Commission's Order rejecting such tariff publication, the issuing 
carrier shall file tariff revisions removing the rejected material, 
unless the Commission's Order establishes a different date for this 
filing. The publication that is subsequently issued in lieu of the 
rejected tariff publication must bear the notation:

    In lieu of ----, rejected by the Federal Communications Commission.

[64 FR 46592, Aug. 26, 1999]



Sec. 61.72  Public information requirements.

    (a) Issuing carriers must make available accurate and timely 
information pertaining to rates and regulations subject to tariff filing 
requirements.
    (b) Issuing carriers must, at a minimum, provide a telephone number 
for public inquiries about information contained in its tariffs. This 
telephone number should be made readily available to all interested 
parties.
    (c) Any issuing carrier that is an incumbent local exchange carrier, 
and chooses to establish an Internet web site, must make its tariffs 
available on that web site, in addition to the Commission's web site.

[64 FR 46592, Aug. 26, 1999]



Sec. 61.73  Duplication of rates or regulations.

    A carrier concurring in schedules of another carrier must not 
publish conflicting or duplicative rates or regulations.



Sec. 61.74  References to other instruments.

    (a) Except as otherwise provided in this and other sections of this 
part, no tariff publication filed with the Commission may make reference 
to any other tariff publication or to any other document or instrument.
    (b) Tariffs for end-on-end through services may reference the 
tariffs of other carriers participating in the offering.
    (c) Tariffs may reference concurrences for the purpose of starting 
where rates or regulations applicable to a service not governed by the 
tariff may be found.
    (d) Tariffs may reference other FCC tariffs that are in effect and 
on file with the Commission for purposes of

[[Page 202]]

determining mileage, or specifying the operating centers at which a 
specific service is available.
    (e) Tariffs may reference technical publications which describe the 
engineering, specifications, or other technical aspects of a service 
offering, provided the following conditions are satisfied:
    (1) The tariff must contain a general description of the service 
offering, including basic parameters and structural elements of the 
offering;
    (2) The technical publication includes no rates, regulatory terms, 
or conditions which are required to be contained in the tariff, and any 
revisions to the technical publication do not affect rates, regulatory 
terms, or conditions included in the tariff, and do not change the basic 
nature of the offering;
    (3) The tariff indicates where the technical publication can be 
obtained;
    (4) The referenced technical publication is publicly available 
before the tariff is scheduled to take effect; and
    (5) The issuing carrier regularly revises its tariff to refer to the 
current edition of the referenced technical publication.

[49 FR 40869, Oct. 18, 1984, as amended at 61 FR 59366, Nov. 22, 1996; 
64 FR 46592, Aug. 26, 1999; 66 FR 16881, Mar. 28, 2001]



Sec. 61.83  Consecutive numbering.

    Carriers should file tariff publications under consecutive FCC 
numbers. If this cannot be done, a memorandum containing an explanation 
of the missing number or numbers must be submitted. Supplements to a 
tariff must be numbered consecutively in a separate series.

[49 FR 40869, Oct. 18, 1984. Redesignated at 64 FR 46591, Aug. 26, 1999]



Sec. 61.86  Supplements.

    A carrier may not file a supplement except to suspend or cancel a 
tariff publication, or to defer the effective date of pending tariff 
revisions. A carrier may file a supplement for the voluntary deferral of 
a tariff publication.

[64 FR 46591, Aug. 26, 1999]



Sec. 61.87  Cancellation of tariffs.

    (a) A carrier may cancel an entire tariff. Cancellation of a tariff 
automatically cancels every page and supplement to that tariff except 
for the canceling Title Page or first page.
    (1) If the existing service(s) will be provided under another 
carrier's tariff, then
    (i) The carrier whose tariff is being canceled must revise the Title 
Page or the first page of its tariff indicating that the tariff is no 
longer effective, or
    (ii) The carrier under whose tariff the service(s) will be provided 
must revise the Title Page or first page of the tariff to be canceled, 
using the name and numbering shown in the heading of the tariff to be 
canceled, indicating that the tariff is no longer effective. This 
carrier must also file with the Commission the new tariff provisions 
reflecting the service(s) being canceled. Both filings must be effective 
on the same date and may be filed under the same transmittal.
    (2) If a carrier canceling its tariff intends to cease to provide 
existing service, then it must revise the Title Page or first page of 
its tariff indicating that the tariff is no longer effective.
    (3) A carrier canceling its tariff, as described in this section, 
must comply with Sec. 61.22 or Secs. 61.54(b)(1) and 61.54(b)(5), as 
applicable.
    (b) When a carrier cancels a tariff as described in this section, 
the canceling Title Page or the first page of the canceled tariff must 
show where all rates and regulations will be found except for paragraph 
(c) of this section. The Title Page or first page of the new tariff must 
indicate the name of the carrier and tariff number where the canceled 
material had been found.
    (c) When a carrier ceases to provide service(s) without a successor, 
it must cancel its tariff pursuant to the notice requirements of 
Sec. 61.23 or Sec. 61.58, as applicable, unless otherwise authorized by 
the Commission.

[64 FR 46591, Aug. 26, 1999]



                         Subpart G--Concurrences



Sec. 61.131  Scope.

    Sections 61.132 through 61.136 apply to a carrier which must file 
concurrences reflecting rates and regulations for through service 
provided in conjunction with other carriers and to a

[[Page 203]]

carrier which has chosen, as an alternative to publishing its own 
tariff, to arrange concurrence in an effective tariff of another 
carrier. Limited or partial concurrences will not be permitted.



Sec. 61.132  Method of filing concurrences.

    A carrier proposing to concur in another carrier's effective tariff 
must deliver two copies of the concurrence to the issuing carrier in 
whose favor the concurrence is issued. The concurrence must be signed by 
an officer or agent of the carrier executing the concurrence, and must 
be numbered consecutively in a separate series from its FCC tariff 
numbers. At the same time the issuing carrier revises its tariff to 
reflect such a concurrence, it must submit both copies of the 
concurrence to the Commission. The concurrence must bear the same 
effective date as the date of the tariff filing reflecting the 
concurrence. Nondominant issuing carriers shall file revisions 
reflecting concurrences in their tariffs on the notice period specified 
in Sec. 61.23 of this part. Dominant issuing carriers shall file 
concurrences in their tariffs on the notice periods specified in 
Sec. 61.58(a)(2) or Sec. 61.58(e)(1)(iii) of this part.

[49 FR 40869, Oct. 18, 1984, as amended at 64 FR 46592, Aug. 26, 1999]



Sec. 61.133  Format of concurrences.

    (a) Concurrences must be issued in the following format:

                               Concurrence

F.C.C. Concurrence No. --------
(Cancels F.C.C. Concurrence No. ----
(Name of Carrier ------------)
(Post Office Address ------------)
(Date) ---------------- 19--.
Secretary,
Federal Communications Commission, Washington, D.C. 20554.
This is to report that (name of concurring carrier) assents to and 
concurs in the tariffs described below. (Name of concurring carrier) 
thus makes itself a party to these tariffs and obligates itself (and its 
connecting carriers) to observe every provision in them, until a notice 
of revocation is filed with the Commission and delivered to the issuing 
carrier.
This concurrence applies to interstate (and foreign) communication:
    1. Between the different points on the concurring carrier's own 
system;
    2. Between all points on the concurring carrier's system and the 
systems of its connecting carriers; and
    3. Between all points on the system of the concurring carrier and 
the systems of its connecting carriers on the one hand, and, on the 
other hand, all points on the system of the carrier issuing the tariff 
or tariffs listed below and the systems of its connecting carriers and 
other carriers with which through routes have been established.

    (Note: Any of the above numbered paragraphs may be omitted or the 
wording modified to state the points to which the concurrence applies.)

                                 Tariff

    (Here describe the tariff or tariffs concurred in by the carrier, 
specifying FCC number, title, date of issuance, and date effective. 
Example: A.B.C. Communications Company, Tariff FCC No. 1, Interstate 
Telegraph Message Service, Issued January 1, 1983, Effective April 1, 
1983).
    Cancels FCC Concurrence No. ----, effective ----, 19--.

(Name of concurring carrier)____________________________________________
By______________________________________________________________________
(Title)_________________________________________________________________

    (b) No material is to be included in a concurrence other than that 
indicated in the above-prescribed form, unless specially authorized by 
the Commission. A concurrence in any tariff so described will be deemed 
to include all amendments and successive issues which the issuing 
carrier may make and file. All such amendments and successive issues 
will be binding between customers and carriers. Between carriers 
themselves, however, the filing by the issuing carrier of an amendment 
or successive issue with the Commission must not imply or be construed 
to imply an agreement to the filing by concurring carriers. Such filings 
do not affect the contractual rights or remedies of any concurring 
carrier(s) which have not, by contract or otherwise, specifically 
consented in advance to such amendment or successive issue.



Sec. 61.134  Concurrences for through services.

    A carrier filing rates or regulations for through services between 
points on its own system and points on another

[[Page 204]]

carrier's system (or systems), or between points on another carrier's 
system (or systems), must list all concurring, connecting or other 
participating carriers as provided in Sec. 61.54 (f), (g) and (h). A 
concurring carrier must tender a properly executed instrument of 
concurrence to the issuing carrier. If rates and regulations of the 
other carriers engaging in the through service(s) are not specified in 
the issuing carrier's tariff, that tariff must state where the other 
carrier's rates and regulations can be found. Such reference(s) must 
contain the FCC number(s) of the referenced tariff publication(s), the 
exact name(s) of the carrier(s) issuing such tariff publication(s), and 
must clearly state how the rates and regulations in the separate 
publications apply.



Sec. 61.135  Concurrences for other purposes.

    When an issuing carrier permits another carrier to concur in its 
tariff, the issuing carrier's tariff must state the concurring carrier's 
rates and points of service.



Sec. 61.136  Revocation of concurrences.

    A concurrence may be revoked by a revocation notice or cancelled by 
a new concurrence. A revocation notice or a new concurrence, if less 
broad in scope than the concurrence it cancels, must bear an effective 
date not less than 45 days after its receipt by the Commission. A 
revocation notice is not given a serial number, but must specify the 
number of the concurrence to be revoked and the name of the carrier in 
whose favor the concurrence was issued. It must be in the following 
format:

                            Revocation Notice

(Name of carrier ------------)
(Post office address ------------)
(Date) ----------------, 19--.
Secretary,
Federal Communications Commission, Washington, D.C. 20554.
    Effective ----, 19-- FCC Concurrence No. --, issued by (Name of 
concurring carrier) in favor of (Name of issuing carrier) is hereby 
cancelled and revoked. Rates and regulations of (Name of concurring 
carrier) and its connecting carriers will thereafter be found in Tariff 
FCC No. -- issued by ---- (If the concurring carrier has ceased 
operations, the revocation notice must so indicate.)

(Name of carrier)_______________________________________________________
By______________________________________________________________________
(Title)_________________________________________________________________



             Subpart H--Applications for Special Permission



Sec. 61.151  Scope.

    Sections 61.152 and 61.153 set forth the procedures to be followed 
by a carrier applying for a waiver of any of the rules in this part.

[55 FR 19173, May 8, 1990]



Sec. 61.152  Terms of applications and grants.

    Applications for special permission must contain:
    (a) A detailed description of the tariff publication proposed to be 
put into effect;
    (b) A statement citing the specific rules and the grounds on which 
waiver is sought;
    (c) A showing of good cause; and
    (d) A statement as to the date and method of filing the original of 
the application for special permission as required by Sec. 61.153(b) and 
the date and method of filing the copies required by Sec. 61.153 (a) and 
(c).

If approved, the carrier must comply with all terms and use all 
authority specified in the grant. If a carrier elects to use less than 
the authority granted, it must apply to the Commission for modification 
of the original grant. If a carrier elects not to use the authority 
granted within sixty days of its effective date, the original grant will 
be automatically cancelled by the Commission.

[55 FR 19173, May 8, 1990]



Sec. 61.153  Method of filing applications.

    (a) An application for special permission must be addressed to 
``Secretary, Federal Communication Commission, Washington, DC 20554.'' 
The date on which the application is received by the Secretary of the 
Commission (or the Mail Room where submitted by mail) is considered the 
official filing date.
    (b) In addition, except for issuing carriers filing tariffing fees 
electronically,

[[Page 205]]

for all special permission applications requiring fees as set forth in 
part 1, subpart G of this chapter, the issuing carrier must submit the 
original of the application letter (without attachments), FCC Form 159, 
and the appropriate fee to the Mellon Bank, Pittsburgh, PA at the 
address set forth in Sec. 1.1105 of this chapter. Issuing carriers 
submitting tariffing fees electronically should submit the Form 159 and 
the original cover letter to the Secretary of the Commission in lieu of 
the Mellon Bank. The Form 159 should display the Electronic Audit Code 
in the box in the upper left hand corner marked ``reserved.'' Issuing 
carriers should submit these fee materials on the same date as the 
submission in paragraph (a) of this section.
    (c) In addition to the requirements set forth in paragraphs (a) and 
(b) of this section, the issuing carrier must send a copy of the 
application letter with all attachments to the Secretary, Federal 
Communications Commission and a separate copy with all attachments to 
the Chief, Pricing Policy Division. If a carrier applies for special 
permission to revise joint tariffs, the application must state that it 
is filed on behalf of all carriers participating in the affected 
service. Applications must be numbered consecutively in a series 
separate from FCC tariff numbers, bear the signature of the officer or 
agent of the carrier, and be in the following format:

________________________________________________________________________
Application No.
________________________________________________________________________
(Date)
________________________________________________________________________
Secretary
    Federal Communications Commission, Washington, DC 20554.
    Attention: Wireline Competition Bureau (here provide the statements 
required by Sec. 61.152).
 (Exact name of carrier)________________________________________________
 (Name of officer or agent)_____________________________________________
 (Title of officer or agent)____________________________________________

[55 FR 19173, May 8, 1990, as amended at 64 FR 46592, 46593, Aug. 26, 
1999; 67 FR 13228, Mar. 21, 2002]



   Subpart I--Adoption of Tariffs and Other Documents of Predecessor 
                                Carriers



Sec. 61.171  Adoption notice.

    When a carrier's name is changed, or its operating control 
transferred from one carrier to another in whole or in part, the 
successor carrier must file tariff revisions to reflect the name change. 
The successor carrier may either immediately reissue the entire tariff 
in its own name, or immediately file an adoption notice. Within 35 days 
of filing an adoption notice, the successor must reissue the entire 
tariff in its own name. The reissued tariff must be numbered in the 
series of the successor carrier, and must contain all original pages 
without changes in regulations or rates. The transmittal letter must 
state the tariff is being filed to show a change in the carrier's name 
pursuant to Sec. 61.171 of the Commission's Rules. The adoption notice, 
if used, must read as follows:

    The (Exact name of successor carrier or receiver) here adopts, 
ratifies and makes its own in every respect, all applicable tariffs and 
amendments filed with the Federal Communications Commission by 
(predecessor) prior to (date).



Sec. 61.172  Changes to be incorporated in tariffs of successor carrier.

    When only a portion of properties is transferred to a successor 
carrier, that carrier must incorporate in its tariff the rates applying 
locally between points on the transferred portion. Moreover, the 
predecessor carrier must simultaneously cancel the corresponding rates 
from its tariffs, and reference the FCC number of the successor 
carrier's tariff containing the rates that will thereafter apply.



                         Subpart J--Suspensions



Sec. 61.191  Carrier to file supplement when notified of suspension.

    If a carrier is notified by the Commission that its tariff 
publication has been suspended, the carrier must file, within five 
business days from the release date of the suspension order, a 
consecutively numbered supplement

[[Page 206]]

without an effective date, which specifies the schedules which have been 
suspended.

[64 FR 46593, Aug. 26, 1999]



Sec. 61.192  Contents of supplement announcing suspension.

    (a) A supplement announcing a suspension by the Commission must 
specify the term of suspension imposed by the Commission.
    (b) A supplement announcing a suspension of either an entire tariff 
or a part of a tariff publication, must specify the applicable tariff 
publication effective during the period of suspension.



Sec. 61.193  Vacation of suspension order; supplements announcing same; etc.

    If the Commission vacates a suspension order, the affected carrier 
must issue a supplement or revised page stating the Commission's action 
as well as the lawful schedules.



  PART 63--EXTENSION OF LINES, NEW LINES, AND DISCONTINUANCE, REDUCTION, OUTAGE AND IMPAIRMENT OF SERVICE BY COMMON CARRIERS; AND GRANTS OF RECOGNIZED PRIVATE 
OPERATING AGENCY STATUS--Table of Contents




                       Extensions and Supplements

Sec.
63.01  Authority for all domestic common carriers.
63.02  Exemptions for extensions of lines and for systems for the 
          delivery of video programming.
63.03  Streamlining procedures for domestic transfer of control 
          applications.
63.04  Filing procedures for domestic transfer of control applications.
63.09  Definitions applicable to international Section 214 
          authorizations.
63.10  Regulatory classification of U.S. international carriers.
63.11  Notification by and prior approval for U.S. international 
          carriers that are or propose to become affiliated with a 
          foreign carrier.
63.12  Processing of international Section 214 applications.
63.13  Procedures for modifying regulatory classification of U.S. 
          international carriers from dominant to non-dominant.
63.14  Prohibition on agreeing to accept special concessions.
63.16  Switched services over private lines.
63.17  Special provisions for U.S. international common carriers.
63.18  Contents of applications for international common carriers.
63.19  Special procedures for discontinuances of international services.
63.20  Copies required; fees; and filing periods for international 
          service providers.
63.21  Conditions applicable to all international Section 214 
          authorizations.
63.22  Facilities-based international common carriers.
63.23  Resale-based international common carriers.
63.24  Assignments and transfers of control.
63.25  Special provisions relating to temporary or emergency service by 
          international carriers.

    General Provisions Relating to All Applications Under Section 214

63.50  Amendment of applications.
63.51  Additional information.
63.52  Copies required; fees; and filing periods for domestic 
          authorizations.
63.53  Form.

            Discontinuance, Reduction, Outage and Impairment

63.60  Definitions.
63.61  Applicability.
63.62  Type of discontinuance, reduction, or impairment of telephone or 
          telegraph service requiring formal application.
63.63  Emergency discontinuance, reduction, or impairment of service.
63.65  Closure of public toll station where another toll station of 
          applicant in the community will continue service.
63.66  Closure of or reduction of hours of service at telephone 
          exchanges at military establishments.
63.71  Procedures for discontinuance, reduction or impairment of service 
          by domestic carriers.
63.90  Publication and posting of notices.
63.100  Notification of service outage.

                   Contents of Applications; Examples

63.500  Contents of applications to dismantle or remove a trunk line.
63.501  Contents of applications to sever physical connection or to 
          terminate or suspend interchange of traffic with another 
          carrier.
63.504  Contents of applications to close a public toll station where no 
          other such toll station of the applicant in the community will 
          continue service and where telephone toll service is not 
          otherwise available to the public through a telephone exchange 
          connected with the toll lines of a carrier.

[[Page 207]]

63.505  Contents of applications for any type of discontinuance, 
          reduction, or impairment of telephone service not specifically 
          provided for in this part.
63.601  Contents of applications for authority to reduce the hours of 
          service of public coast stations under the conditions 
          specified in Sec. 63.70.

    Request for Designation as a Recognized Private Operating Agency

63.701  Contents of application.
63.702  Form.

    Authority: Sections 1, 4(i), 4(j), 10, 11, 201-205, 214, 218, 403 
and 651 of the Communications Act of 1934, as amended, 47 U.S.C. 151, 
154(i), 154(j), 160, 201-205, 214, 218, 403, and 571, unless otherwise 
noted.

    Source: 28 FR 13229, Dec. 5, 1963, unless otherwise noted.

                       Extensions and Supplements



Sec. 63.01  Authority for all domestic common carriers.

    (a) Any party that would be a domestic interstate communications 
common carrier is authorized to provide domestic, interstate services to 
any domestic point and to construct or operate any domestic transmission 
line as long as it obtains all necessary authorizations from the 
Commission for use of radio frequencies.
    (b) Domestic common carriers subject to this section shall not 
engage in any line construction that may have a significant effect on 
the environment as defined in Sec. 1.1307 of this chapter without prior 
compliance with the Commission's environmental rules. See Sec. 1.1312 of 
this chapter.

[64 FR 39939, July 23, 1999, as amended at 67 FR 18830, Apr. 17, 2002]



Sec. 63.02  Exemptions for extensions of lines and for systems for the delivery of video programming.

    (a) Any common carrier is exempt from the requirements of section 
214 of the Communications Act of 1934, as amended, for the extension of 
any line.
    (b) A common carrier shall not be required to obtain a certificate 
under section 214 of the Communications Act of 1934 with respect to the 
establishment or operation of a system for the delivery of video 
programming.

[64 FR 39939, July 23, 1999]



Sec. 63.03  Streamlining procedures for domestic transfer of control applications.

    Any domestic carrier that seeks to transfer control of lines or 
authorization to operate pursuant to section 214 of the Communications 
Act of 1934, as amended, shall be subject to the following procedures:
    (a) Public Notice and Review Period. Upon determination by the 
Common Carrier Bureau that the applicants have filed a complete 
application and that the application is appropriate for streamlined 
treatment, the Common Carrier Bureau will issue a public notice stating 
that the application has been accepted for filing as a streamlined 
application. Unless otherwise notified by the Commission, an applicant 
is permitted to transfer control of the domestic lines or authorization 
to operate on the 31st day after the date of public notice listing a 
domestic section 214 transfer of control application as accepted for 
filing as a streamlined application, but only in accordance with the 
operations proposed in its application. Comments on streamlined 
applications may be filed during the first 14 days following public 
notice, and reply comments may be filed during the first 21 days 
following public notice, unless the public notice specifies a different 
pleading cycle. All comments on streamlined applications shall be filed 
electronically, and shall satisfy such other filing requirements as may 
be specified in the public notice.
    (b) Presumptive Streamlined Categories. (1) The streamlined 
procedures provided in this rule shall be presumed to apply to all 
transfer of control applications in which:
    (i) Both applicants are non-facilities-based carriers;
    (ii) The transferee is not a telecommunications provider; or
    (iii) The proposed transaction involves only the transfer of the 
local exchange assets of an incumbent LEC by means other than an 
acquisition of corporate control.
    (2) Where a proposed transaction would result in a transferee having 
a market share in the interstate, interexchange market of less than 10 
percent, and the transferee would provide

[[Page 208]]

competitive telephone exchange services or exchange access services (if 
at all) exclusively in geographic areas served by a dominant local 
exchange carrier that is not a party to the transaction, the streamlined 
procedures provided in this rule shall be presumed to apply to transfer 
of control applications in which:
    (i) Neither of the applicants is dominant with respect to any 
service;
    (ii) The applicants are a dominant carrier and a non-dominant 
carrier that provides services exclusively outside the geographic area 
where the dominant carrier is dominant; or
    (iii) The applicants are incumbent independent local exchange 
carriers (as defined in Sec. 64.1902 of this chapter) that have, in 
combination, fewer than two (2) percent of the nation's subscriber lines 
installed in the aggregate nationwide, and no overlapping or adjacent 
service areas.
    (3) For purposes of (b)(1) and (2) of this paragraph, the terms 
``applicant,'' ``carrier,'' ``party,'' and ``transferee'' (and their 
plural forms) include any affiliates of such entities within the meaning 
of section 3(1) of the Communications Act of 1934, as amended.
    (c) Removal of Application from Streamlined Processing. (1) At any 
time after an application is filed, the Commission, acting through the 
Chief of the Wireline Competition Bureau, may notify an applicant that 
its application is being removed from streamlined processing, or will 
not be subject to streamlined processing. Examples of appropriate 
circumstances for such action are:
    (i) An application is associated with a non-routine request for 
waiver of the Commission's rules;
    (ii) An application would, on its face, violate a Commission rule or 
the Communications Act;
    (iii) An applicant fails to respond promptly to Commission 
inquiries;
    (iv) Timely-filed comments on the application raise public interest 
concerns that require further Commission review; or
    (v) The Commission, acting through the Chief of the Wireline 
Competition Bureau, otherwise determines that the application requires 
further analysis to determine whether a proposed transfer of control 
would serve the public interest.
    (2) Notification will be by public notice that states the reason for 
removal or non-streamlined treatment, and indicates the expected 
timeframe for Commission action on the application. Except in 
extraordinary circumstances, final action on the application should be 
expected no later than 180 days from public notice that the application 
has been accepted for filing.
    (d) Pro Forma Transactions. (1) Any party that would be a domestic 
common carrier under section 214 of the Communications Act of 1934, as 
amended, is authorized to undertake any corporate restructuring, 
reorganization or liquidation of internal business operations that does 
not result in a change in ultimate ownership or control of the carrier's 
lines or authorization to operate, including transfers in bankruptcy 
proceedings to a trustee or to the carrier itself as a debtor-in-
possession.\1\ Under this rule, a transfer of control of a domestic line 
or authorization to operate is considered pro forma when, together with 
all previous internal corporate restructurings, the transaction does not 
result in a change in the carrier's ultimate ownership or control, or 
otherwise falls into one of the illustrative categories found in 
Sec. 63.24 of this part governing transfers of control of international 
carriers under section 214 of the Communications Act of 1934, as 
amended.
---------------------------------------------------------------------------

    \1\ ``Control'' includes actual working control in whatever manner 
exercised and is not limited to majority stock ownership. ``Control'' 
also includes direct or indirect ownership or control, such as through 
intervening subsidiaries. See 47 CFR 63.09.
---------------------------------------------------------------------------

    (2) Any party that would be a domestic common carrier under section 
214 of the Communications Act of 1934, as amended, must notify the 
Commission no later than 30 days after control of the carrier is 
transferred to a trustee under Chapter 7 of the Bankruptcy Code, a 
debtor-in-possession under Chapter 11 of the Bankruptcy Code, or any 
other party pursuant to any applicable chapter of the Bankruptcy Code 
when that transfer does not result in a change in ultimate ownership or 
control of the carrier's lines or authorization to operate. The 
notification can be

[[Page 209]]

in the form of a letter (in duplicate to the Secretary). The letter or 
other form of notification must also contain the information listed in 
paragraphs (a)(1) through (a)(4) in Sec. 63.04. A single letter may be 
filed for more than one such transfer of control. If a carrier files a 
discontinuance request within 30 days of the transfer in bankruptcy, the 
Commission will treat the discontinuance request as sufficient to 
fulfill the pro forma post-transaction notice requirement.
    (3) Notwithstanding any other provision in this part, any party that 
would be a domestic common carrier under section 214 of the 
Communications Act of 1934, as amended, including a carrier that begins 
providing service through a differently named subsidiary after an 
internal corporate restructuring, remains subject to all applicable 
conditions of service after an internal restructuring, such as rules 
governing slamming and tariffing.

[67 FR 18831, Apr. 17, 2002; 67 FR 21803, May 1, 2002]



Sec. 63.04  Filing procedures for domestic transfer of control applications

    (a) Domestic services only. A carrier seeking domestic section 214 
authorization for transfer of control should file an application 
containing:
    (1) The name, address and telephone number of each applicant;
    (2) The government, state, or territory under the laws of which each 
corporate or partnership applicant is organized;
    (3) The name, title, post office address, and telephone number of 
the officer or contact point, such as legal counsel, to whom 
correspondence concerning the application is to be addressed;
    (4) The name, address, citizenship and principal business of any 
person or entity that directly or indirectly owns at least ten (10) 
percent of the equity of the applicant, and the percentage of equity 
owned by each of those entities (to the nearest one (1) percent);
    (5) Certification pursuant to Secs. 1.2001 through 1.2003 of this 
chapter that no party to the application is subject to a denial of 
Federal benefits pursuant to section 5301 of the Anti-Drug Abuse Act of 
1988. See 21 U.S.C. 853.
    (6) A description of the transaction;
    (7) A description of the geographic areas in which the transferor 
and transferee (and their affiliates) offer domestic telecommunications 
services, and what services are provided in each area;
    (8) A statement as to how the application fits into one or more of 
the presumptive streamlined categories in this section or why it is 
otherwise appropriate for streamlined treatment;
    (9) Identification of all other Commission applications related to 
the same transaction;
    (10) A statement of whether the applicants are requesting special 
consideration because either party to the transaction is facing imminent 
business failure;
    (11) Identification of any separately filed waiver requests being 
sought in conjunction with the transaction; and
    (12) A statement showing how grant of the application will serve the 
public interest, convenience and necessity, including any additional 
information that may be necessary to show the effect of the proposed 
transaction on competition in domestic markets.
    (b) Domestic/International applications for transfers of control. 
Where an applicant wishes to file a joint international section 214 
transfer of control application and domestic section 214 transfer of 
control application, the applicant should submit information that 
satisfies the requirements of Sec. 63.18, which specifies the contents 
of applications for international authorizations, together with filing 
fees that satisfy (and are in accordance with filing procedures 
applicable to) both Secs. 1.1105 and 1.1107 of this chapter. In an 
attachment to the international application, the applicant should submit 
the information described in paragraphs (a)(6) through (a)(12) of this 
section.

[67 FR 18832, Apr. 17, 2002]



Sec. 63.09  Definitions applicable to international Section 214 authorizations.

    The following definitions shall apply to Secs. 63.09-63.24 of this 
part, unless the context indicates otherwise:
    (a) Facilities-based carrier means a carrier that holds an 
ownership, indefeasible-right-of-user, or leasehold interest in bare 
capacity in the U.S. end of an international facility, regardless

[[Page 210]]

of whether the underlying facility is a common carrier or non-common 
carrier submarine cable or a satellite system.
    (b) Control includes actual working control in whatever manner 
exercised and is not limited to majority stock ownership. Control also 
includes direct or indirect control, such as through intervening 
subsidiaries.
    (c) Special concession is defined as in Sec. 63.14(b) of this part.
    (d) Foreign carrier is defined as any entity that is authorized 
within a foreign country to engage in the provision of international 
telecommunications services offered to the public in that country within 
the meaning of the International Telecommunication Regulations, see 
Final Acts of the World Administrative Telegraph and Telephone 
Conference, Melbourne, 1988 (WATTC-88), Art. 1, which includes entities 
authorized to engage in the provision of domestic telecommunications 
services if such carriers have the ability to originate or terminate 
telecommunications services to or from points outside their country.
    (e) Two entities are affiliated with each other if one of them, or 
an entity that controls one of them, directly or indirectly owns more 
than 25 percent of the capital stock of, or controls, the other one.
    Also, a U.S. carrier is affiliated with two or more foreign carriers 
if the foreign carriers, or entities that control them, together 
directly or indirectly own more than 25 percent of the capital stock of, 
or control, the U.S. carrier and those foreign carriers are parties to, 
or the beneficiaries of, a contractual relation (e.g., a joint venture 
or market alliance) affecting the provision or marketing of 
international basic telecommunications services in the United States.
    (f) Market power means sufficient market power to affect competition 
adversely in the U.S. market.
    (g) As used in this part, the term:
    (1) Interlocking directorates shall mean persons or entities who 
perform the duties of ``officer or director'' in an authorized U.S. 
international carrier or an applicant for international Section 214 
authorization who also performs such duties for any foreign carrier.
    (2) Officer or director shall include the duties, or any of the 
duties, ordinarily performed by a director, president, vice president, 
secretary, treasurer, or other officer of a carrier.

    Note 1: The assessment of ``capital stock'' ownership will be made 
under the standards developed in Commission case law for determining 
such ownership. See, e.g., Fox Television Stations, Inc., 10 FCC Rcd 
8452 (1995). ``Capital stock'' includes all forms of equity ownership, 
including partnership interests.
    Note 2: Ownership and other interests in U.S. and foreign carriers 
will be attributed to their holders and deemed cognizable pursuant to 
the following criteria: Attribution of ownership interests in a carrier 
that are held indirectly by any party through one or more intervening 
corporations will be determined by successive multiplication of the 
ownership percentages for each link in the vertical ownership chain and 
application of the relevant attribution benchmark to the resulting 
product, except that wherever the ownership percentage for any link in 
the chain that is equal to or exceeds 50 percent or represents actual 
control, it shall be treated as if it were a 100 percent interest. For 
example, if A owns 30 percent of company X, which owns 60 percent of 
company Y, which owns 26 percent of ``carrier,''' then X's interest in 
``carrier''' would be 26 percent (the same as Y's interest because X's 
interest in Y exceeds 50 percent), and A's interest in ``carrier''' 
would be 7.8 percent (0.30 x 0.26 because A's interest in X is less than 
50 percent). Under the 25 percent attribution benchmark, X's interest in 
``carrier''' would be cognizable, while A's interest would not be 
cognizable.

[64 FR 19062, Apr. 19, 1999, as amended at 65 FR 60116, Oct. 10, 2000; 
67 FR 45390, July 9, 2002]



Sec. 63.10  Regulatory classification of U.S. international carriers.

    (a) Unless otherwise determined by the Commission, any party 
authorized to provide an international communications service under this 
part shall be classified as either dominant or non-dominant for the 
provision of particular international communications services on 
particular routes as set forth in this section. The rules set forth in 
this section shall also apply to determinations of regulatory status 
pursuant to Secs. 63.11 and 63.13. For purposes of paragraphs (a)(2) and 
(a)(3) of this section, the relevant markets on the foreign end of a 
U.S. international route include: international transport

[[Page 211]]

facilities or services, including cable landing station access and 
backhaul facilities; inter-city facilities or services; and local access 
facilities or services on the foreign end of a particular route.
    (1) A U.S. carrier that has no affiliation with, and that itself is 
not, a foreign carrier in a particular country to which it provides 
service (i.e., a destination country) shall presumptively be considered 
non-dominant for the provision of international communications services 
on that route;
    (2) Except as provided in paragraph (a)(4) of this section, a U.S. 
carrier that is, or that has or acquires an affiliation with a foreign 
carrier that is a monopoly provider of communications services in a 
relevant market in a destination country shall presumptively be 
classified as dominant for the provision of international communications 
services on that route; and
    (3) A U.S. carrier that is, or that has or acquires an affiliation 
with a foreign carrier that is not a monopoly provider of communications 
services in a relevant market in a destination country and that seeks to 
be regulated as non-dominant on that route bears the burden of 
submitting information to the Commission sufficient to demonstrate that 
its foreign affiliate lacks sufficient market power on the foreign end 
of the route to affect competition adversely in the U.S. market. If the 
U.S. carrier demonstrates that the foreign affiliate lacks 50 percent 
market share in the international transport and the local access markets 
on the foreign end of the route, the U.S. carrier shall presumptively be 
classified as non-dominant.
    (4) A carrier that is authorized under this part to provide to a 
particular destination an international switched service, and that 
provides such service solely through the resale of an unaffiliated U.S. 
facilities-based carrier's international switched services (either 
directly or indirectly through the resale of another U.S. resale 
carrier's international switched services), shall presumptively be 
classified as non-dominant for the provision of the authorized service. 
A carrier regulated as non-dominant pursuant to this subparagraph shall 
notify the Commission at any time that it begins to provide such service 
through the resale of an affiliated U.S. facilities-based carrier's 
international switched services. The carrier will be deemed a dominant 
carrier on the route absent a Commission finding that the carrier 
otherwise qualifies for non-dominant regulation pursuant to this 
section.
    (b) Any party that seeks to defeat the presumptions in paragraph (a) 
of this section shall bear the burden of proof upon any issue it raises 
as to the proper classification of the U.S. carrier.
    (c) Any carrier classified as dominant for the provision of 
particular services on particular routes under this section shall comply 
with the following requirements in its provision of such services on 
each such route:
    (1) Provide services as an entity that is separate from its foreign 
carrier affiliate, in compliance with the following requirements:
    (i) The authorized carrier shall maintain separate books of account 
from its affiliated foreign carrier. These separate books of account do 
not need to comply with Part 32 of this chapter; and
    (ii) The authorized carrier shall not jointly own transmission or 
switching facilities with its affiliated foreign carrier. Nothing in 
this section prohibits the U.S. carrier from sharing personnel or other 
resources or assets with its foreign affiliate;
    (2) File quarterly reports on traffic and revenue, consistent with 
the reporting requirements authorized pursuant to Sec. 43.61, within 90 
days from the end of each calendar quarter;
    (3) File quarterly reports summarizing the provisioning and 
maintenance of all basic network facilities and services procured from 
its foreign carrier affiliate or from an allied foreign carrier, 
including, but not limited to, those it procures on behalf of customers 
of any joint venture for the provision of U.S. basic or enhanced 
services in which the authorized carrier and the foreign carrier 
participate, within 90 days from the end of each calendar quarter. These 
reports should contain the following: the types of circuits and services 
provided; the average time intervals between order and

[[Page 212]]

delivery; the number of outages and intervals between fault report and 
service restoration; and for circuits used to provide international 
switched service, the percentage of ``peak hour'' calls that failed to 
complete;
    (4) In the case of an authorized facilities-based carrier, file 
quarterly circuit status reports within 90 days from the end of each 
calendar quarter in the format set out by the Sec. 43.82 annual circuit 
status manual, with two exceptions: activated or idle circuits must be 
reported on a facility-by-facility basis; and the derived circuits need 
not be specified in the three quarterly reports due on June 30, 
September 30, and December 31.
    (5) If authorized to provide facilities-based service, comply with 
paragraph (e) of this section.
    (d) A carrier classified as dominant under this section shall file 
an original and two copies of each report required by paragraphs (c)(3), 
(c)(4), and (c)(5) of this section with the Chief, International Bureau. 
The carrier shall also file one copy of these reports with the 
Commission's copy contractor. The transmittal letter accompanying each 
report shall clearly identify the report as responsive to the 
appropriate paragraph of Sec. 63.10(c).
    (e) Except as otherwise ordered by the Commission, a carrier that is 
classified as dominant under this section for the provision of 
facilities-based services on a particular route and that is affiliated 
with a carrier that collects settlement payments for terminating U.S. 
international switched traffic at the foreign end of that route may not 
provide switched facilities-based service on that route unless the 
current rates the affiliate charges U.S. international carriers to 
terminate traffic are at or below the Commission's relevant benchmark 
adopted in IB Docket No. 96-261. See FCC 97-280 (rel. Aug. 18, 1997) 
(available at the FCC's Reference Operations Division, Washington, D.C. 
20554, and on the FCC's World Wide Web Site at http://www.fcc.gov).

[62 FR 64752, Dec. 9, 1997, as amended at 64 FR 19062, Apr. 19, 1999; 64 
FR 46593, Aug. 26, 1999; 64 FR 47702, Sept. 1, 1999; 66 FR 16881, Mar. 
28, 2001; 67 FR 45390, July 9, 2002]



Sec. 63.11  Notification by and prior approval for U.S. international carriers that are or propose to become affiliated with a foreign carrier.

    If a carrier is authorized by the Commission (``authorized 
carrier'') to provide service between the United States and a particular 
foreign destination market and it becomes, or seeks to become, 
affiliated with a foreign carrier that is authorized to operate in that 
market, then its authorization to provide that international service is 
conditioned upon notifying the Commission of that affiliation.
    (a) Affiliations requiring prior notification. Except as provided in 
paragraph (b) of this section, the authorized carrier must notify the 
Commission, pursuant to this section, forty-five days before 
consummation of either of the following types of transactions:
    (1) Acquisition by the authorized carrier, or by any entity that 
controls the authorized carrier, or by any entity that directly or 
indirectly owns more than twenty-five percent of the capital stock of 
the authorized carrier, of a controlling interest in a foreign carrier 
that is authorized to operate in a market that the carrier is authorized 
to serve; or
    (2) Acquisition of a direct or indirect interest greater than 
twenty-five percent, or of a controlling interest, in the capital stock 
of the authorized carrier by a foreign carrier that is authorized to 
operate in a market that the authorized carrier is authorized to serve, 
or by an entity that controls such a foreign carrier.
    (b) Exceptions. (1) Notwithstanding paragraph (a) of this section, 
the notification required by this section need not be filed before 
consummation, and may instead be filed pursuant to paragraph (c) of this 
section, if either of the following is true with respect to the named 
foreign carrier regardless of whether that foreign carrier is authorized 
to operate in a World Trade Organization (WTO) or non-WTO Member:
    (i) The Commission has previously determined in an adjudication that 
the foreign carrier lacks market power in that destination market (for 
example, in an international section 214 application or a declaratory 
ruling proceeding); or

[[Page 213]]

    (ii) The foreign carrier owns no facilities in that destination 
market. For this purpose, a carrier is said to own facilities if it 
holds an ownership, indefeasible-right-of-user, or leasehold interest in 
bare capacity in international or domestic telecommunications facilities 
(excluding switches).
    (2) In the event paragraph (b)(1) of this section cannot be 
satisfied, notwithstanding paragraph (a) of this section, the 
notification required by this section need not be filed before 
consummation, and may instead be filed pursuant to paragraph (c) of this 
section, if the authorized carrier certifies that the named foreign 
carrier is authorized to operate in a WTO Member and provides 
certification to satisfy either of the following:
    (i) The authorized carrier demonstrates that it is entitled to 
retain non-dominant classification on its newly affiliated route 
pursuant to Sec. 63.10; or
    (ii) The authorized carrier agrees to comply with the dominant 
carrier safeguards contained in Sec. 63.10 effective upon the 
acquisition of the affiliation. See Sec. 63.10.
    (c) Notification after consummation. Any authorized carrier that 
becomes affiliated with a foreign carrier and has not previously 
notified the Commission pursuant to this section shall notify the 
Commission within thirty days after consummation of the acquisition.

    Example 1 to paragraph (c). Acquisition by an authorized carrier (or 
by any entity that directly or indirectly controls, is controlled by, or 
is under direct or indirect common control with the authorized carrier) 
of a direct or indirect interest in a foreign carrier that is greater 
than twenty-five percent but not controlling is subject to paragraph (c) 
but not to paragraph (a).
    Example 2 to paragraph (c). Notification of an acquisition by an 
authorized carrier of a hundred percent interest in a foreign carrier 
may be made after consummation, pursuant to paragraph (c), if the 
foreign carrier operates only as a resale carrier.
    Example 3 to paragraph (c). Notification of an acquisition by a 
foreign carrier from a WTO Member of a greater than twenty-five percent 
interest in the capital stock of an authorized carrier may be made after 
consummation, pursuant to paragraph (c) of this section, if the 
authorized carrier demonstrates in the post-notification that it 
qualifies for non-dominant classification on the affiliated route or 
agrees to comply with dominant carrier safeguards on the affiliated 
route effective upon the acquisition of the affiliation.

    (d) Cross-reference. In the event a transaction requiring a foreign 
carrier notification pursuant to this section also requires a transfer 
of control or assignment application pursuant to Sec. 63.18(e)(3), the 
foreign carrier notification shall reference in the notification the 
transfer of control or assignment application and the date of its 
filing. See Sec. 63.18(e)(3).
    (e) Contents of notification. The notification shall certify the 
following information:
    (1) The name of the newly affiliated foreign carrier and the country 
or countries in which it is authorized to provide telecommunications 
services to the public;
    (2) Which, if any, of those countries is a Member of the World Trade 
Organization;
    (3) What services the authorized carrier is authorized to provide to 
each named country, and the FCC file numbers under which each such 
authorization was granted;
    (4) Which, if any, of those countries the authorized carrier serves 
solely through the resale of the international switched services of 
unaffiliated U.S. facilities-based carriers;
    (5) The name, address, citizenship, and principal business of any 
person or entity that directly or indirectly owns at least ten (10) 
percent of the equity of the authorized carrier, and the percentage of 
equity owned by each of those entities (to the nearest one percent);
    (6) A certification that the authorized carrier has not agreed to 
and will not in the future agree to accept special concessions directly 
or indirectly from any foreign carrier with respect to any U.S. 
international route where the foreign carrier possesses market power on 
the foreign end of the route; and
    (7) Interlocking directorates. The name of any interlocking 
directorates, as defined in Sec. 63.09(g), with each foreign carrier 
named in the notification. See Sec. 63.09(g).
    (8) With respect to each foreign carrier named in the notification, 
a statement as to whether the notification is

[[Page 214]]

subject to paragraph (a) or (c) of this section. In the case of a 
notification subject to paragraph (a) of this section, the authorized 
carrier shall include the projected date of closing. In the case of a 
notification subject to paragraph (c) of this section, the authorized 
carrier shall include the actual date of closing.
    (9) If an authorized carrier relies on an exception in paragraph (b) 
of this section, then a certification as to which exception the foreign 
carrier satisfies and a citation to any adjudication upon which the 
carrier is relying. Authorized carriers relying upon the exceptions in 
paragraph (b)(2) of this section must make the required certified 
demonstration in paragraph (b)(2)(i) of this section or the certified 
commitment to comply with dominant carrier safeguards in paragraph 
(b)(2)(ii) of this section in the notification required by paragraph (c) 
of this section.
    (f) In order to retain non-dominant status on each newly affiliated 
route, the authorized carrier should demonstrate that it qualifies for 
non-dominant classification pursuant to Sec. 63.10. See Sec. 63.10.
    (g) Procedure. After the Commission issues a public notice of the 
submissions made under this section, interested parties may file 
comments within fourteen days of the public notice.
    (1) If the Commission deems it necessary at any time before or after 
the deadline for submission of public comments, the Commission may 
impose dominant carrier regulation on the authorized carrier for the 
affiliated routes based on the provisions of Sec. 63.10. See Sec. 63.10.
    (2) In the case of a prior notification filed pursuant to paragraph 
(a) of this section in which the foreign carrier is authorized to 
operate in a non-WTO Member, the authorized carrier must demonstrate 
that it continues to serve the public interest for it to operate on the 
route for which it proposes to acquire an affiliation with the non-WTO 
foreign carrier by making the required showing in Secs. 63.18(k)(2) or 
(3) to the Commission. If the authorized carrier is unable to make the 
required showing in Secs. 63.18(k)(2) or (3) or is notified that the 
affiliation may otherwise harm the public interest pursuant to the 
Commission's policies and rules, then the Commission may impose 
conditions necessary to address any public interest harms or may proceed 
to an immediate authorization revocation hearing. See Secs. 63.18(k)(2) 
and (3).
    (h) All authorized carriers are responsible for the continuing 
accuracy of information provided pursuant to this section for a period 
of forty-five days after filing. During this period if the information 
furnished is no longer accurate, the authorized carrier shall as 
promptly as possible, and in any event within ten days, unless good 
cause is shown, file with the Secretary in duplicate a corrected 
notification referencing the FCC file numbers under which the original 
certification was provided, except that the carrier shall immediately 
inform the Commission if at any time, not limited to the forty-five 
days, the representations in the ``special concessions'' certification 
provided under paragraph (e)(6) of this section or Sec. 63.18(n) are no 
longer true. See Sec. 63.18(n).
    (i) A carrier that files a prior notification pursuant to paragraph 
(a) of this section may request confidential treatment of its filing, 
pursuant to Sec. 0.459 of this chapter, for the first twenty days after 
filing. Such a request must be made prominently in a cover letter 
accompanying the filing.

[65 FR 60116, Oct. 10, 2000]



Sec. 63.12  Processing of international Section 214 applications.

    (a) Except as provided by paragraph (c) of this section, a complete 
application seeking authorization under Sec. 63.18 of this part shall be 
granted by the Commission 14 days after the date of public notice 
listing the application as accepted for filing.
    (b) The applicant may commence operation on the 15th day after the 
date of public notice listing the application as accepted for filing, 
but only in accordance with the operations proposed in its application 
and the rules, regulations, and policies of the Commission. The public 
notice of the grant of the authorization shall represent the applicant's 
Section 214 certificate.
    (c) The streamlined processing procedures provided by paragraphs (a) 
and

[[Page 215]]

(b) of this section shall not apply where:
    (1) The applicant is affiliated with a foreign carrier in a 
destination market, unless the applicant clearly demonstrates in its 
application at least one of the following:
    (i) The Commission has previously determined that the affiliated 
foreign carrier lacks market power in that destination market;
    (ii) The applicant qualifies for a presumption of non-dominance 
under Sec. 63.10(a)(3);
    (iii) The affiliated foreign carrier owns no facilities, or only 
mobile wireless facilities, in that destination market. For this 
purpose, a carrier is said to own facilities if it holds an ownership, 
indefeasible-right-of-user, or leasehold interest in bare capacity in 
international or domestic telecommunications facilities (excluding 
switches);
    (iv) The affiliated destination market is a WTO Member country and 
the applicant qualifies for a presumption of non-dominance under 
Sec. 63.10(a)(4)of this part;
    (v) The affiliated destination market is a WTO Member country and 
the applicant agrees to be classified as a dominant carrier to the 
affiliated destination country under Sec. 63.10, without prejudice to 
its right to petition for reclassification at a later date; or
    (vi) An entity with exactly the same ultimate ownership as the 
applicant has been authorized to provide the applied-for services on the 
affiliated destination route, and the applicant agrees to be subject to 
all of the conditions to which the authorized carrier is subject for its 
provision of service on that route; or
    (2) The applicant has an affiliation with a dominant U.S. carrier 
whose international switched or private line services the applicant 
seeks authority to resell (either directly or indirectly through the 
resale of another reseller's services), unless the applicant agrees to 
be classified as a dominant carrier to the affiliated destination 
country under Sec. 63.10 (without prejudice to its right to petition for 
reclassification at a later date); or
    (3) The applicant seeks authority to provide switched basic services 
over private lines to a country for which the Commission has not 
previously authorized the provision of switched services over private 
lines; or
    (4) The Commission has informed the applicant in writing, within 14 
days after the date of public notice listing the application as accepted 
for filing, that the application is not eligible for streamlined 
processing.
    (d) If an application is deemed complete but, pursuant to paragraph 
(c) of this section, is deemed ineligible for the streamlined processing 
procedures provided by paragraphs (a) and (b) of this section, the 
Commission will issue public notice indicating that the application is 
ineligible for streamlined processing. Within 90 days of the public 
notice, the Commission will take action upon the application or provide 
public notice that, because the application raises questions of 
extraordinary complexity, an additional 90-day period for review is 
needed. Each successive 90-day period may be so extended. The 
application shall not be deemed granted until the Commission 
affirmatively acts upon the application. Operation for which such 
authorization is sought may not commence except in accordance with any 
terms or conditions imposed by the Commission.

[62 FR 64753, Dec. 9, 1997, as amended at 64 FR 19063, Apr. 19, 1999; 64 
FR 22903, Apr. 28, 1999; 64 FR 43095, Aug. 9, 1999]



Sec. 63.13  Procedures for modifying regulatory classification of U.S. international carriers from dominant to non-dominant.

    Any party that desires to modify its regulatory status from dominant 
to non-dominant for the provision of particular international 
communications services on a particular route should provide information 
in its application to demonstrate that it qualifies for non-dominant 
classification pursuant to Sec. 63.10.

[62 FR 64754, Dec. 9, 1997]



Sec. 63.14  Prohibition on agreeing to accept special concessions.

    (a) Any carrier authorized to provide international communications 
service under this part shall be prohibited, except as provided in 
paragraph (c) of this section, from agreeing to accept

[[Page 216]]

special concessions directly or indirectly from any foreign carrier with 
respect to any U.S. international route where the foreign carrier 
possesses sufficient market power on the foreign end of the route to 
affect competition adversely in the U.S. market and from agreeing to 
accept special concessions in the future.

    Note to paragraph (a): Carriers may 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 foreign carriers are the subject of the prohibitions contained in 
this section. The Commission's list of foreign carriers that do not 
qualify for the presumption that they lack market power is available 
from the International Bureau's World Wide Web site at http://
www.fcc.gov/ib.

    (b) A special concession is defined as an exclusive arrangement 
involving services, facilities, or functions on the foreign end of a 
U.S. international route that are necessary for the provision of basic 
telecommunications services where the arrangement is not offered to 
similarly situated U.S.-licensed carriers and involves:
    (1) Operating agreements for the provision of basic services;
    (2) Distribution arrangements or interconnection arrangements, 
including pricing, technical specifications, functional capabilities, or 
other quality and operational characteristics, such as provisioning and 
maintenance times; or
    (3) Any information, prior to public disclosure, about a foreign 
carrier's basic network services that affects either the provision of 
basic or enhanced services or interconnection to the foreign country's 
domestic network by U.S. carriers or their U.S. customers.
    (c) This section shall not apply to the rates, terms and conditions 
in an agreement between a U.S. carrier and a foreign carrier that govern 
the settlement of international traffic, including the method for 
allocating return traffic, if the international route is exempt from the 
international settlements policy under Sec. 43.51(e)(3) of this chapter.

[62 FR 64754, Dec. 9, 1997, as amended at 64 FR 19063, Apr. 19, 1999; 64 
FR 34741, June 29, 1999; 66 FR 16881, Mar. 28, 2001]



Sec. 63.16  Switched services over private lines.

    (a) Except as provided in Secs. 63.22 (e)(2) and 63.23(d)(2), a 
carrier may provide switched basic services over its authorized private 
lines if and only if the country at the foreign end of the private line 
appears on a Commission list of destinations to which the Commission has 
authorized the provision of switched services over private lines. The 
list of authorized destinations is available from the International 
Bureau's World Wide Web site at http://www.fcc.gov/ib.
    (b) An authorized carrier seeking to add a foreign market to the 
list of markets for which carriers may provide switched services over 
private lines must make the following showing:
    (1) If seeking a Commission ruling to permit the provision of 
international switched basic services over private lines between the 
United States and a WTO Member country, the applicant shall demonstrate 
either that settlement rates for at least 50 percent of the settled 
U.S.-billed traffic between the United States and the country at the 
foreign end of the private line are at or below the benchmark settlement 
rate adopted for that country in IB Docket No. 96-261 or that the 
country affords resale opportunities equivalent to those available under 
U.S. law (see paragraph (c) of this section).
    (2) If seeking a Commission ruling to permit the provision of 
international switched basic services over private lines between the 
United States and a non-WTO Member country, the applicant shall 
demonstrate that settlement rates for at least 50 percent of the settled 
U.S.-billed traffic between the United States and the country at the 
foreign end of the private line are at or below the benchmark settlement 
rate adopted for that country in IB Docket No. 96-261 that the country 
affords resale opportunities equivalent to those available under U.S. 
law (see paragraph (c) of this section).
    (c) With regard to showing under paragraph (b) of this section that 
a destination country affords resale opportunities equivalent to those 
available under U.S. law, an applicant shall include evidence 
demonstrating that equivalent resale opportunities exist

[[Page 217]]

between the United States and the subject country, including any 
relevant bilateral or multilateral agreements between the 
administrations involved. The applicant must demonstrate that the 
foreign country at the other end of the private line provides U.S.-based 
carriers with:
    (1) The legal right to resell international private lines, 
interconnected at both ends, for the provision of switched services;
    (2) Reasonable and nondiscriminatory charges, terms and conditions 
for interconnection to foreign domestic carrier facilities for 
termination and origination of international services, with adequate 
means of enforcement;
    (3) Competitive safeguards to protect against anticompetitive and 
discriminatory practices affecting private line resale; and
    (4) Fair and transparent regulatory procedures, including separation 
between the regulator and operator of international facilities-based 
services.
    (d) The showing required by paragraph (b) of this section may be 
made in a Section 214 application filed pursuant to Sec. 63.18 of this 
part or in a petition for declaratory ruling addressed to the attention 
of the International Bureau and indicating clearly the name of the party 
seeking the declaration and the destination points for which the 
declaration is sought. The Commission will issue public notice of the 
filing of the request and may, in each case, determine an appropriate 
deadline for filing comments. Unopposed requests may be granted by 
public notice.

    Note 1 to Sec. 63.16: The Commission's benchmark settlement rates 
are available in International Settlement Rates, IB Docket No. 96-261, 
Report and Order, FCC 97-280, 12 FCC Rcd 19,806, 62 FR 45758 (August 29, 
1997).

[64 FR 19063, Apr. 19, 1999, as amended at 64 FR 34741, June 29, 1999]



Sec. 63.17  Special provisions for U.S. international common carriers.

    (a) Unless otherwise prohibited by the terms of its Section 214 
certificate, a U.S. common carrier authorized under this part to provide 
international private line service, whether as a reseller or facilities-
based carrier, may interconnect its authorized private lines to the 
public switched network on behalf of an end user customer for the end 
user customer's own use.
    (b) Except as provided in paragraph (b)(4) of this section, a U.S. 
common carrier, whether a reseller or facilities-based carrier, may 
engage in ``switched hubbing'' to countries for which the Commission has 
not authorized the provision of switched basic services over private 
lines provided the carrier complies with the following conditions:
    (1) U.S.-outbound switched traffic shall be routed over the 
carrier's authorized U.S. international private lines to a country for 
which the Commission has authorized the provision of switched services 
over private lines (i.e., the ``hub'' country), and then forwarded to 
the third country only by taking at published rates and reselling the 
international message telephone service (IMTS) of a carrier in the hub 
country;
    (2) U.S.-inbound switched traffic shall be carried to a country for 
which the Commission has authorized the provision of switched services 
over private lines (i.e., the ``hub'' country) as part of the IMTS 
traffic flow from a third country and then terminated in the United 
States over U.S. international private lines from the hub country;
    (3) Authorized carriers filing tariffs pursuant to Secs. 61.19 or 
61.28 of this chapter that route U.S.-billed traffic via switched 
hubbing shall tariff their service on a ``through'' basis between the 
United States and the ultimate point of origination or termination;
    (4) No U.S. common carrier may engage in switched hubbing to or from 
a third country where it has an affiliation with a foreign carrier 
unless and until it has received authority to serve that country under 
Sec. 63.18(e)(1), (e)(2), or (e)(3).

[60 FR 67339, Dec. 29, 1995, as amended at 61 FR 15728, Apr. 9, 1996; 63 
FR 64754, Dec. 9, 1997; 64 FR 19064, Apr. 19, 1999; 66 FR 16881, Mar. 
28, 2001; 67 FR 45390, July 9, 2002]



Sec. 63.18  Contents of applications for international common carriers.

    Except as otherwise provided in this part, any party seeking 
authority pursuant to Section 214 of the Communications Act of 1934, as 
amended, to construct a new line, or acquire or operate

[[Page 218]]

any line, or engage in transmission over or by means of such additional 
line for the provision of common carrier communications services between 
the United States, its territories or possessions, and a foreign point 
shall request such authority by formal application which shall be 
accompanied by a statement showing how the grant of the application will 
serve the public interest, convenience, and necessity. Such statement 
shall consist of the following information, as applicable:
    (a) The name, address, and telephone number of each applicant;
    (b) The Government, State, or Territory under the laws of which each 
corporate or partnership applicant is organized;
    (c) The name, title, post office address, and telephone number of 
the officer and any other contact point, such as legal counsel, to whom 
correspondence concerning the application is to be addressed;
    (d) A statement as to whether the applicant has previously received 
authority under Section 214 of the Act and, if so, a general description 
of the categories of facilities and services authorized (i.e., 
authorized to provide international switched services on a facilities 
basis);
    (e) One or more of the following statements, as pertinent:
    (1) Global facilities-based authority. If applying for authority to 
become a facilities-based international common carrier subject to 
Sec. 63.22 of this part, the applicant shall:
    (i) State that it is requesting Section 214 authority to operate as 
a facilities-based carrier pursuant to Sec. 63.18(e)(1) of this part of 
the Commission's rules;
    (ii) List any countries for which the applicant does not request 
authorization under this paragraph (see Sec. 63.22(a) of this part); and
    (iii) Certify that it will comply with the terms and conditions 
contained in Secs. 63.21 and 63.22 of this part.
    (2) Global resale authority. If applying for authority to resell the 
international services of authorized U.S. common carriers subjectto 
Sec. 63.23 of this part, the applicant shall:
    (i) State that it is requesting Section 214 authority to operate as 
a resale carrier pursuant to Sec. 63.18(e)(2) of this section of the 
Commission's rules;
    (ii) List any countries for which the applicant does not request 
authorization under this paragraph (see Sec. 63.23(a) of this part); and
    (iii) Certify that it will comply with the terms and conditions 
contained in Secs. 63.21 and 63.23 of this part.
    (3) Other authorizations. If applying for authority to acquire 
facilities or to provide services not covered by paragraphs (e)(1) and 
(e)(2) of this section, the applicant shall provide a description of the 
facilities and services for which it seeks authorization. The applicant 
shall certify that it will comply with the terms and conditions 
contained in Sec. 63.21 and Sec. 63.22 and/or Sec. 63.23, as 
appropriate. Such description also shall include any additional 
information the Commission shall have specified previously in an order, 
public notice or other official action as necessary for authorization.
    (f) Applicants may apply for any or all of the authority provided 
for in paragraph (e) of this section in the same application. The 
applicant may want to file separate applications for those services not 
subject to streamlined processing under Sec. 63.12.
    (g) Where the applicant is seeking facilities-based authority under 
paragraph (e)(3) of this section, a statement whether an authorization 
of the facilities is categorically excluded as defined by Sec. 1.1306 of 
this chapter. If answered affirmatively, an environmental assessment as 
described in Sec. 1.1311 of this chapter need not be filed with the 
application.
    (h) The name, address, citizenship and principal businesses of any 
person or entity that directly or indirectly owns at least ten percent 
of the equity of the applicant, and the percentage of equity owned by 
each of those entities (to the nearest one percent). The applicant shall 
also identify any interlocking directorates with a foreign carrier.
    Note to Paragraph (h): Ownership and other interests in U.S. and 
foreign carriers will be attributed to their holders and deemed 
cognizable pursuant to the following criteria: Attribution of ownership 
interests in a carrier that are held indirectly by any party through one 
or more intervening corporations will be determined by successive

[[Page 219]]

multiplication of the ownership percentages for each link in the 
vertical ownership chain and application of the relevant attribution 
benchmark to the resulting product, except that wherever the ownership 
percentage for any link in the chain that is equal to or exceeds 50 
percent or represents actual control, it shall be treated as if it were 
a 100 percent interest. For example, if A owns 30 percent of company X, 
which owns 60 percent of company Y, which owns 26 percent of 
``carrier,'' then X's interest in ``carrier'' would be 26 percent (the 
same as Y's interest because X's interest in Y exceeds 50 percent), and 
A's interest in ``carrier'' would be 7.8 percent (0.30 x 0.26 because 
A's interest in X is less than 50 percent). Under the 25 percent 
attribution benchmark, X's interest in ``carrier'' would be cognizable, 
while A's interest would not be cognizable.
    (i) A certification as to whether or not the applicant is, or is 
affiliated with, a foreign carrier. The certification shall state with 
specificity each foreign country in which the applicant is, or is 
affiliated with, a foreign carrier.
    (j) A certification as to whether or not the applicant seeks to 
provide international telecommunications services to any destination 
country for which any of the following is true. The certification shall 
state with specificity the foreign carriers and destination countries:
    (1) The applicant is a foreign carrier in that country; or
    (2) The applicant controls a foreign carrier in that country; or
    (3) Any entity that owns more than 25 percent of the applicant, or 
that controls the applicant, controls a foreign carrier in that country.
    (4) Two or more foreign carriers (or parties that control foreign 
carriers) own, in the aggregate, more than 25 percent of the applicant 
and are parties to, or the beneficiaries of, a contractual relation 
(e.g., a joint venture or market alliance) affecting the provision or 
marketing of international basic telecommunications services in the 
United States.
    (k) For any destination country listed by the applicant in response 
to paragraph (j) of this section, the applicant shall make one of the 
following showings:
    (1) The named foreign country (i.e., the destination foreign 
country) is a Member of the World Trade Organization; or
    (2) The applicant's affiliated foreign carrier lacks market power in 
the named foreign country; or
    (3) The named foreign country provides effective competitive 
opportunities to U.S. carriers to compete in that country's market for 
the service that the applicant seeks to provide (facilities-based, 
resold switched, or resold non-interconnected private line services). An 
effective competitive opportunities demonstration should address the 
following factors:
    (i) If the applicant seeks to provide facilities-based international 
services, the legal ability of U.S. carriers to enter the foreign market 
and provide facilities-based international services, in particular 
international message telephone service (IMTS);
    (ii) If the applicant seeks to provide resold services, the legal 
ability of U.S. carriers to enter the foreign market and provide resold 
international switched services (for switched resale applications) or 
non-interconnected private line services (for non-interconnected private 
line resale applications);
    (iii) Whether there exist reasonable and nondiscriminatory charges, 
terms and conditions for interconnection to a foreign carrier's domestic 
facilities for termination and origination of international services or 
the provision of the relevant resale service;
    (iv) Whether competitive safeguards exist in the foreign country to 
protect against anticompetitive practices, including safeguards such as:
    (A) Existence of cost-allocation rules in the foreign country to 
prevent cross-subsidization;
    (B) Timely and nondiscriminatory disclosure of technical information 
needed to use, or interconnect with, carriers' facilities; and
    (C) Protection of carrier and customer proprietary information;
    (v) Whether there is an effective regulatory framework in the 
foreign country to develop, implement and enforce legal requirements, 
interconnection arrangements and other safeguards; and
    (vi) Any other factors the applicant deems relevant to its 
demonstration.

[[Page 220]]

    (l) Any applicant that proposes to resell the international switched 
services of an unaffiliated U.S. carrier for the purpose of providing 
international telecommunications services to a country where it is a 
foreign carrier or is affiliated with a foreign carrier shall either 
provide a showing that would satisfy Sec. 63.10(a)(3) of this part or 
state that it will file the quarterly traffic reports required by 
Sec. 43.61(c) of this chapter.
    (m) With respect to regulatory classification under Sec. 63.10 of 
this part, any applicant that is or is affiliated with a foreign carrier 
in a country listed in response to paragraph (i) of this section and 
that desires to be regulated as non-dominant for the provision of 
particular international telecommunications services to that country 
should provide information in its application to demonstrate that it 
qualifies for non-dominant classification pursuant to Sec. 63.10 of this 
part.
    (n) A certification that the applicant has not agreed to accept 
special concessions directly or indirectly from any foreign carrier with 
respect to any U.S. international route where the foreign carrier 
possesses market power on the foreign end of the route and will not 
enter into such agreements in the future.
    (o) A certification pursuant to Secs. 1.2001 through 1.2003 of this 
chapter that no party to the application is subject to a denial of 
Federal benefits pursuant to Section 5301 of the Anti-Drug Abuse Act of 
1988. See 21 U.S.C. 853a.
    (p) If the applicant desires streamlined processing pursuant to 
Sec. 63.12, a statement of how the application qualifies for streamlined 
processing.

[61 FR 15729, Apr. 9, 1996, as amended at 62 FR 32965, June 17, 1997; 62 
FR 45762, Aug. 29, 1997; 62 FR 64755, Dec. 9, 1997; 63 FR 24121, May 1, 
1998; 64 FR 19064, Apr. 19, 1999; 65 FR 60117, Oct. 10, 2000; 67 FR 
45390, July 9, 2002]



Sec. 63.19  Special procedures for discontinuances of international services.

    (a) With the exception of those international carriers described in 
paragraphs (b) and (c) of this section, any international carrier that 
seeks to discontinue, reduce or impair service, including the retiring 
of international facilities, dismantling or removing of international 
trunk lines, shall be subject to the following procedures in lieu of 
those specified in Secs. 63.61 through 63.601:
    (1) The carrier shall notify all affected customers of the planned 
discontinuance, reduction or impairment at least 60 days prior to its 
planned action. Notice shall be in writing to each affected customer 
unless the Commission authorizes in advance, for good cause shown, 
another form of notice.
    (2) The carrier shall file with this Commission a copy of the 
notification on or after the date on which notice has been given to all 
affected customers.
    (b) The following procedures shall apply to any international 
carrier that the Commission has classified as dominant in the provision 
of a particular international service because the carrier possesses 
market power in the provision of that service on the U.S. end of the 
route. Any such carrier that seeks to retire international facilities, 
dismantle or remove international trunk lines, but does not discontinue, 
reduce or impair the dominant services being provided through these 
facilities, shall only be subject to the notification requirements of 
paragraph (a) of this section. If such carrier discontinues, reduces or 
impairs the dominant service, or retires facilities that impair or 
reduce the service, the carrier shall file an application pursuant to 
Secs. 63.62 and 63.500.
    (c) Commercial Mobile Radio Service (CMRS) carriers, as defined in 
Sec. 20.9 of this chapter, are not subject to the provisions of this 
section.

[67 FR 45391, July 9, 2002]



Sec. 63.20  Copies required; fees; and filing periods for international service providers.

    (a) Unless otherwise specified the Commission shall be furnished 
with an original and five copies of applications filed for international 
facilities and services under Section 214 of the Communications Act of 
1934, as amended. Upon request by the Commission, additional copies of 
the application shall be furnished. Each application shall be 
accompanied by the fee prescribed in subpart G of part 1 of this 
chapter.

[[Page 221]]

    (b) No application accepted for filing and subject to the provisions 
of Secs. 63.18, 63.62 or 63.505 of this part shall be granted by the 
Commission earlier than 28 days following issuance of public notice by 
the Commission of the acceptance for filing of such application or any 
major amendment unless said public notice specifies another time period, 
or the application qualifies for streamlined processing pursuant to 
Sec. 63.12 of this part.
    (c) No application accepted for filing and subject to the 
streamlined processing provisions of Sec. 63.12 of this part shall be 
granted by the Commission earlier than 14 days following issuance of 
public notice by the Commission of the acceptance for filing of such 
application or any major amendment unless said public notice specifies 
another time period.
    (d) Any interested party may file a petition to deny an application 
within the time period specified in the public notice listing an 
application as accepted for filing and ineligible for streamlined 
processing. The petitioner shall serve a copy of such petition on the 
applicant no later than the date of filing thereof with the Commission. 
The petition shall contain specific allegations of fact sufficient to 
show that the petitioner is a party in interest and that a grant of the 
application would be prima facie inconsistent with the public interest, 
convenience and necessity. Such allegations of fact shall, except for 
those of which official notice may be taken, be supported by affidavit 
of a person or persons with personal knowledge thereof. The applicant 
may file an opposition to any petition to deny within 14 days after the 
original pleading is filed. The petitioner may file a reply to such 
opposition within seven days after the time for filing oppositions has 
expired. Allegations of facts or denials thereof shall similarly be 
supported by affidavit. These responsive pleadings shall be served on 
the applicant or petitioner, as appropriate, and other parties to the 
proceeding.

[61 FR 15732, Apr. 9, 1996, as amended at 64 FR 19065, Apr. 19, 1999; 67 
FR 45391, July 9, 2002]



Sec. 63.21  Conditions applicable to all international Section 214 authorizations.

    International carriers authorized under Section 214 of the 
Communications Act of 1934, as amended, must follow the following 
requirements and prohibitions:
    (a) Each carrier is responsible for the continuing accuracy of the 
certifications made in its application. Whenever the substance of any 
such certification is no longer accurate, the carrier shall as promptly 
as possible and in any event within thirty days file with the Secretary 
in duplicate a corrected certification referencing the FCC file number 
under which the original certification was provided. The information may 
be used by the Commission to determine whether a change in regulatory 
status may be warranted under Sec. 63.10 of this part. See also 
Sec. 63.11 of this part.
    (b) Carriers must file copies of operating agreements entered into 
with their foreign correspondents as specified in Sec. 43.51 of this 
chapter and shall otherwise comply with the filing requirements 
contained in that section.
    (c) Carriers regulated as dominant for the provision of a particular 
international communications service on a particular route for any 
reason other than a foreign carrier affiliation under Sec. 63.10 shall 
file tariffs pursuant to Section 203 of the Communications Act, 47 
U.S.C. 203, and part 61 of this chapter. Except as specified in 
Sec. 20.15(d) of this chapter with respect to commercial mobile radio 
service providers, carriers regulated as non-dominant, as defined in 
Sec. 61.3 of this chapter, and providing detariffed international 
services pursuant to Sec. 61.19 of this chapter must comply with all 
applicable public disclosure and maintenance of information requirements 
in Secs. 42.10 and 42.11 of this chapter.
    (d) Carriers must file annual reports of overseas telecommunications 
traffic as required by Sec. 43.61 of this chapter.
    (e) Authorized carriers may not access or make use of specific U.S. 
customer proprietary network information that is derived from a foreign 
network unless the carrier obtains approval from that U.S. customer. In 
seeking to obtain approval, the carrier

[[Page 222]]

must notify the U.S. customer that the customer may require the carrier 
to disclose the information to unaffiliated third parties upon written 
request by the customer.
    (f) Authorized carriers may not receive from a foreign carrier any 
proprietary or confidential information pertaining to a competing U.S. 
carrier, obtained by the foreign carrier in the course of its normal 
business dealings, unless the competing U.S. carrier provides its 
permission in writing.
    (g) The Commission reserves the right to review a carrier's 
authorization, and, if warranted, impose additional requirements on U.S. 
international carriers in circumstances where it appears that harm to 
competition is occurring on one or more U.S. international routes.
    (h) Subject to the requirement of Sec. 63.10 of this part that a 
carrier regulated as dominant along a route must provide service as an 
entity that is separate from its foreign carrier affiliate, and subject 
to any other structural-separation requirement in Commission 
regulations, an authorized carrier may provide service through any 
wholly owned direct or indirect subsidiaries. The carrier shall, within 
30 days after the subsidiary begins providing service, file a letter 
with the Secretary in duplicate referencing the authorized carrier's 
name and the FCC file numbers under which the carrier's authorizations 
were granted and identifying the subsidiary's name and place of legal 
organization. This provision shall not be construed to authorize the 
provision of service by any entity barred by statute or regulation from 
itself holding an authorization or providing service.
    (i) An authorized carrier, or a subsidiary operating pursuant to 
paragraph (h) of this section, that changes its name (including the name 
under which it is doing business) shall notify the Commission by letter 
filed with the Secretary in duplicate within 30 days of the name change. 
Such letter shall reference the FCC file numbers under which the 
carrier's authorization was granted.

[61 FR 15732, Apr. 9, 1996, as amended at 62 FR 45762, Aug. 29, 1997; 62 
FR 64758, Dec. 9, 1997; 64 FR 19065, Apr. 19, 1999; 66 FR 16881, Mar. 
28, 2001; 67 FR 45391, July 9, 2002; 67 FR 57344, Sept. 10, 2002]



Sec. 63.22  Facilities-based international common carriers.

    The following conditions apply to authorized facilities-based 
international carriers:
    (a) A carrier authorized under Sec. 63.18(e)(1) may provide 
international facilities-based services to international points for 
which it qualifies for non-dominant regulation as set forth in 
Sec. 63.10, except in the following circumstance: If the carrier is, or 
is affiliated with, a foreign carrier in a destination market and the 
Commission has not determined that the foreign carrier lacks market 
power in the destination market (see Sec. 63.10(a)), the carrier shall 
not provide service on that route unless it has received specific 
authority to do so under Sec. 63.18(e)(3).
    (b) The carrier may provide service using half-circuits on any U.S. 
common carrier and non-common carrier facilities that do not appear on 
an exclusion list published by the Commission. Carriers may also use any 
necessary non-U.S.-licensed facilities, including any submarine cable 
systems, that do not appear on the exclusion list. Carriers may not use 
U.S. earth stations to access non-U.S.-licensed satellite systems unless 
the Commission has specifically approved the use of those satellites and 
so indicates on the exclusion list. The exclusion list is available from 
the International Bureau's World Wide Web site at http://www.fcc.gov/ib.
    (c) Specific authority under Sec. 63.18(e)(3) is required for the 
carrier to provide service using any facilities listed on the exclusion 
list, to provide service between the United States and any country on 
the exclusion list, or to construct, acquire, or operate lines in any 
new major common carrier facility project.

[[Page 223]]

    (d) The carrier may provide international basic switched, private 
line, data, television and business services.
    (e)(1) Except as provided in paragraph (e)(2) of this section, the 
carrier may provide switched basic services over its authorized 
facilities-based private lines if and only if the country at the foreign 
end of the private line appears on a Commission list of countries to 
which the Commission has authorized the provision of switched services 
over private lines. See Sec. 63.16. If at any time the Commission 
removes the country from that list or finds that market distortion has 
occurred in the routing of traffic between the United States and that 
country, the carrier shall comply with enforcement actions taken by the 
Commission.
    (2) The carrier may use its authorized facilities-based private 
lines to provide switched basic services in circumstances where the 
carrier is exchanging switched traffic with a foreign carrier that lacks 
market power in the country at the foreign end of the private line.
    (3) A foreign carrier lacks market power for purposes of paragraph 
(e)(2) of this section if it does not appear on the Commission's list of 
foreign carriers that do not qualify for the presumption that they lack 
market power in particular foreign points. This list is available from 
the International Bureau's World Wide Web site at http://www.fcc.gov/ib.
    (f) The carrier shall file annual international circuit status 
reports as required by Sec. 43.82 of this chapter.
    (g) The authority granted under this part is subject to all 
Commission rules and regulations and any conditions or limitations 
stated in the Commission's public notice or order that serves as the 
carrier's Section 214 certificate. See Secs. 63.12, 63.21 of this part.

[64 FR 19065, Apr. 19, 1999, as amended at 64 FR 34741, June 29, 1999; 
67 FR 45391, July 9, 2002]



Sec. 63.23  Resale-based international common carriers.

    The following conditions apply to carriers authorized to resell the 
international services of other authorized carriers:
    (a) A carrier authorized under Sec. 63.18(e)(2) may provide resold 
international services to international points for which the applicant 
qualifies for non-dominant regulation as set forth in Sec. 63.10, except 
that the carrier may not provide either of the following services unless 
it has received specific authority to do so under Sec. 63.18(e)(3):
    (1) Resold switched services to a non-WTO Member country where the 
applicant is, or is affiliated with, a foreign carrier; and
    (2) Switched or private line services over resold private lines to a 
destination market where the applicant is, or is affiliated with, a 
foreign carrier and the Commission has not determined that the foreign 
carrier lacks market power in the destination market (see 
Sec. 63.10(a)).
    (b) The carrier may not resell the international services of an 
affiliated carrier regulated as dominant on the route to be served 
unless it has received specific authority to do so under 
Sec. 63.18(e)(3).
    (c) Except as provided in paragraph (b) of this section, the carrier 
may resell the international services of any authorized common carrier, 
pursuant to that carrier's tariff or contract duly filed with the 
Commission, for the provision of international basic switched, private 
line, data, television and business services to all international 
points.
    (d)(1) Except as provided in paragraph (d)(2) of this section, the 
carrier may provide switched basic services over its authorized resold 
private lines if and only if the country at the foreign end of the 
private line appears on a Commission list of countries to which the 
Commission has authorized the provision of switched services over 
private lines. See Sec. 63.16. If at any time the Commission removes the 
country from that list or finds that market distortion has occurred in 
the routing of traffic between the United States and that country, the 
carrier shall comply with enforcement actions taken by the Commission.
    (2) The carrier may use its authorized resold private lines to 
provide switched basic services in circumstances where the carrier is 
exchanging switched traffic with a foreign carrier that lacks

[[Page 224]]

market power in the country at the foreign end of the private line.
    (3) A foreign carrier lacks market power for purposes of paragraph 
(d)(2) of this section if it does not appear on the Commission's list of 
foreign carriers that do not qualify for the presumption that they lack 
market power in particular foreign points. This list is available from 
the International Bureau's World Wide Web site at http://www.fcc.gov/ib.
    (e) Any party certified to provide international resold private 
lines to a particular geographic market shall report its circuit 
additions on an annual basis. Circuit additions should indicate the 
specific services provided (e.g., IMTS or private line) and the country 
served. This report shall be filed on a consolidated basis not later 
than March 31 for the preceding calendar year.
    (f) The authority granted under this part is subject to all 
Commission rules and regulations and any conditions or limitations 
stated in the Commission's public notice or order that serves as the 
carrier's Section 214 certificate. See Secs. 63.12, 63.21 of this part.

[64 FR 19066, Apr. 19, 1999, as amended at 64 FR 34741, June 29, 1999; 
67 FR 45391, July 9, 2002]



Sec. 63.24  Assignments and transfers of control.

    (a) General. Except as otherwise provided in this section, an 
international section 214 authorization may be assigned, or control of 
such authorization may be transferred by the transfer of control of any 
entity holding such authorization, to another party, whether voluntarily 
or involuntarily, directly or indirectly, only upon application to and 
prior approval by the Commission.
    (b) Assignments. For purposes of this section, an assignment of an 
authorization is a transaction in which the authorization is assigned 
from one entity to another entity. Following an assignment, the 
authorization is held by an entity other than the one to which it was 
originally granted.
    (c) Transfers of control. For purposes of this section, a transfer 
of control is a transaction in which the authorization remains held by 
the same entity, but there is a change in the entity or entities that 
control the authorization holder. A change from less than 50 percent 
ownership to 50 percent or more ownership shall always be considered a 
transfer of control. In all other situations, whether the interest being 
transferred is controlling must be determined on a case-by-case basis 
with reference to the factors listed in the Note to this paragraph (c).
    Note to Paragraph (c): Because the issue of control inherently 
involves issues of fact, it must be determined on a case-by-case basis 
and may vary with the circumstances presented by each case. The factors 
relevant to a determination of control in addition to equity ownership 
include, but are not limited to the following: power to constitute or 
appoint more than fifty percent of the board of directors or partnership 
management committee; authority to appoint, promote, demote and fire 
senior executives that control the day-to-day activities of the 
licensee; ability to play an integral role in major management decisions 
of the licensee; authority to pay financial obligations, including 
expenses arising out of operations; ability to receive monies and 
profits from the facility's operations; and unfettered use of all 
facilities and equipment.
    (d) Pro forma assignments and transfers of control. Transfers of 
control or assignments that do not result in a change in the actual 
controlling party are considered non-substantial or pro forma. Whether 
there has been a change in the actual controlling party must be 
determined on a case-by-case basis with reference to the factors listed 
in Note 1 to this paragraph (d). The types of transactions listed in 
Note 2 to this paragraph (d) shall be considered presumptively pro forma 
and prior approval from the Commission need not be sought.
    Note 1 to Paragraph (d): Because the issue of control inherently 
involves issues of fact, it must be determined on a case-by-case basis 
and may vary with the circumstances presented by each case. The factors 
relevant to a determination of control in addition to equity ownership 
include, but are not limited to the following: power to constitute or 
appoint more than fifty percent of the board of directors or partnership 
management committee; authority to appoint, promote, demote and fire 
senior executives that control the day-to-day activities of the 
licensee; ability to play an integral role in major

[[Page 225]]

management decisions of the licensee; authority to pay financial 
obligations, including expenses arising out of operations; ability to 
receive monies and profits from the facility's operations; and 
unfettered use of all facilities and equipment.
    Note 2 to Paragraph (d): If a transaction is one of the types listed 
further, the transaction is presumptively pro forma and prior approval 
need not be sought. In all other cases, the relevant determination shall 
be made on a case-by-case basis. Assignment from an individual or 
individuals (including partnerships) to a corporation owned and 
controlled by such individuals or partnerships without any substantial 
change in their relative interests; Assignment from a corporation to its 
individual stockholders without effecting any substantial change in the 
disposition of their interests; Assignment or transfer by which certain 
stockholders retire and the interest transferred is not a controlling 
one; Corporate reorganization that involves no substantial change in the 
beneficial ownership of the corporation (including re-incorporation in a 
different jurisdiction or change in form of the business entity); 
Assignment or transfer from a corporation to a wholly owned direct or 
indirect subsidiary thereof or vice versa, or where there is an 
assignment from a corporation to a corporation owned or controlled by 
the assignor stockholders without substantial change in their interests; 
or Assignment of less than a controlling interest in a partnership.
    (e) Applications for substantial transactions. (1) In the case of an 
assignment or transfer of control shall of an international section 214 
authorization that is not pro forma, the proposed assignee or transferee 
must apply to the Commission for authority prior to consummation of the 
proposed assignment or transfer of control.
    (2) The application shall include the information requested in 
paragraphs (a) through (d) of Sec. 63.18 for both the transferor/
assignor and the transferee/assignee. The information requested in 
paragraphs (h) through (p) of Sec. 63.18 is required only for the 
transferee/assignee. At the beginning of the application, the applicant 
shall include a narrative of the means by which the proposed transfer or 
assignment will take place.
    (3) The Commission reserves the right to request additional 
information as to the particulars of the transaction to aid it in making 
its public interest determination.
    (4) An assignee or transferee shall notify the Commission no later 
than 30 days after either consummation of the proposed assignment or 
transfer of control, or a decision not to consummate the proposed 
assignment or transfer of control. The notification may be made by 
letter (sending an original and five copies to the Office of the 
Secretary) and shall identify the file numbers under which the initial 
authorization and the authorization of the assignment or transfer of 
control were granted.
    (f) Notifications for non-substantial or pro forma transactions. (1) 
In the case of a pro forma assignment or transfer of control, the 
section 214 authorization holder is not required to seek prior 
Commission approval.
    (2) A pro forma assignee or carrier that is subject to a pro forma 
transfer of control shall file a notification with the Commission no 
later than 30 days after the assignment or transfer is completed. The 
notification may be made by letter (sending an original and five copies 
to the Office of the Secretary). The notification must contain the 
following:
    (i) The information requested in paragraphs (a) through (d) and (h) 
of Sec. 63.18 for the transferee/assignee;
    (ii) A certification that the transfer of control or assignment was 
pro forma and that, together with all previous pro forma transactions, 
does not result in a change in the actual controlling party.
    (3) A single letter may be filed for an assignment or transfer of 
control of more than one authorization if each authorization is 
identified by the file number under which it was granted.
    (4) Upon release of a public notice granting a pro forma assignment 
or transfer of control, petitions for reconsideration under Sec. 1.106 
of this chapter or applications for review under Sec. 1.115 of this 
chapter of the Commission's rules may be filed within 30 days. 
Petitioner should address why the assignment or transfer of control in 
question should have been filed under paragraph (e) of this section 
rather than under this paragraph (f).
    (g) Involuntary assignments or transfers of control. In the case of 
an involuntary assignment or transfer of control to: a

[[Page 226]]

bankruptcy trustee appointed under involuntary bankruptcy; an 
independent receiver appointed by a court of competent jurisdiction in a 
foreclosure action; or, in the case of death or legal disability, to a 
person or entity legally qualified to succeed the deceased or disabled 
person under the laws of the place having jurisdiction over the estate 
involved; the applicant must make the appropriate filing no later than 
30 days after the event causing the involuntary assignment or transfer 
of control.

[67 FR 45391, July 9, 2002]



Sec. 63.25  Special provisions relating to temporary or emergency service by international carriers.

    (a) For the purpose of this section the following definitions shall 
apply:
    (1) Temporary service shall mean service for a period not exceeding 
6 months;
    (2) Emergency service shall mean service for which there is an 
immediate need occasioned by conditions unforeseen by, and beyond the 
control of, the carrier.
    (b) Requests for immediate authority for temporary service or for 
emergency service may be made by letter or telegram setting forth why 
such immediate authority is required, the nature of the emergency, the 
type of facilities proposed to be used, the route kilometers thereof, 
the terminal communities to be served, and airline kilometers between 
such communities; how these points are presently being served by the 
applicant or other carriers, the need for the proposed service, the cost 
involved including any rentals, the date on which the service is to 
begin, and where known, the date or approximate date on which the 
service is to terminate.
    (c) Without regard to the other requirements of this part, and by 
application setting forth the need therefor, any carrier may request 
continuing authority, subject to termination by the Commission at any 
time upon 10 days' notice to the carrier, to provide temporary or 
emergency service by the construction or installation of facilities 
where the estimated construction, installation, and acquisition costs do 
not exceed $35,000 or an annual rental of not more than $7,000 provided 
that such project does not involve a major action under the Commission's 
environmental rules. (See subpart I of part 1 of this chapter.) Any 
carrier to which continuing authority has been granted under this 
paragraph shall, not later than the 30th day following the end of each 
6-month period covered by such authority, file with the Commission a 
statement in writing making reference to this paragraph and setting 
forth, with respect to each project (construction, installation, lease, 
including any renewals thereof), which was commenced or, in the case of 
leases, entered into under such authority, and renewal or renewals 
thereof which were in continuous effect for a period of more than one 
week, the following information:
    (1) The type of facility constructed, installed, or leased;
    (2) The route kilometers thereof (excluding leased facilities);
    (3) The terminal communities served and the airline kilometers 
between terminal communities in the proposed project;
    (4) The cost thereof, including construction, installation, or 
lease;
    (5) Where appropriate, the name of the lessor company, and the dates 
of commencement and termination of the lease.
    (d)(1) A request may be made by any carrier for continuing authority 
to lease and operate, during any emergency when its regular facilities 
become inoperative or inadequate to handle its traffic, facilities or 
any other carrier between points between which applicant is authorized 
to communicate by radio for the transmission of traffic which applicant 
is authorized to handle.
    (2) Such request may be made by letter or telegram making reference 
to this paragraph and setting forth the points between which applicant 
desires to operate facilities of other carriers and the nature of the 
traffic to be handled thereover.
    (3) Continuing authority for the operation thereafter of such 
alternate facilities during emergencies shall be deemed granted 
effective as of the 21st day following the filing of the request unless 
on or before that date the Commission shall notify the applicant to

[[Page 227]]

the contrary: provided, however, Applicant shall, not later than the 
30th day following the end of each quarter in which it has operated 
facilities of any other carrier pursuant to authority granted under this 
paragraph, file with the Commission a statement in writing making 
reference to this paragraph and describing each occasion during the 
quarter when it has operated such facilities, giving dates, points 
between which such facilities were located, hours or minutes used, 
nature of traffic handled, and reasons why its own facilities could not 
be used.

(Sec. 303, 48 Stat. 1082, as amended; 47 U.S.C. 303)

[28 FR 13229, Dec. 5, 1963, as amended at 41 FR 20662, May 20, 1976; 58 
FR 44906, Aug. 25, 1993. Redesignated and amended at 64 FR 39939, July 
23, 1999]

    General Provisions Relating to All Applications Under Section 214



Sec. 63.50  Amendment of applications.

    Any application may be amended as a matter of right prior to the 
date of any final action taken by the Commission or designation for 
hearing. Amendments to applications shall be signed and submitted in the 
same manner, and with the same number of copies as was the original 
application. If a petition to deny or other formal objections have been 
filed to the application, the amendment shall be served on the parties.

(Sec. 303, 48 Stat. 1082, as amended; 47 U.S.C. 303)

[41 FR 20662, May 20, 1976]



Sec. 63.51  Additional information.

    The applicant shall furnish any additional information which the 
Commission may require after a preliminary examination of the 
application or request. Where an applicant fails to respond to official 
correspondence or request for additional material, the application may 
be dismissed without prejudice.

(Sec. 303, 48 Stat. 1082, as amended; 47 U.S.C. 303)

[41 FR 20662, May 20, 1976]



Sec. 63.52  Copies required; fees; and filing periods for domestic authorizations.

    (a) Unless otherwise specified the Commission shall be furnished 
with an original and 5 copies of applications filed under section 214 of 
the Communications Act of 1934, as amended; Provided, however, that 
where applications involve only the supplementation of existing domestic 
facilities, and the issuance of a certificate is not required, an 
original and 2 copies of the application shall be furnished. Upon 
request by the Commission additional copies of the application shall be 
furnished. Each application shall be accompanied by the fee prescribed 
in subpart G of part 1 of this chapter.
    (b) No application accepted for filing and subject to part 63 of 
these rules, unless provided for otherwise, shall be granted by the 
Commission earlier than 30 days following issuance of public notice by 
the Commission of the acceptance for filing of such application or any 
major amendment unless said public notice specifies another time period.
    (c) Any interested party may file a petition to deny an application 
within the 30-day or other time period specified in paragraph (b) of 
this section. The petitioner shall serve a copy of such petition on the 
applicant no later than the date of filing thereof with the Commission. 
The petition shall contain specific allegations of fact sufficient to 
show that the petitioner is a party in interest and that a grant of the 
application would be prima facie inconsistent with the public interest, 
convenience and necessity. Such allegations of fact shall, except for 
those of which official notice may be taken, be supported by affidavit 
of a person or persons with personal knowledge thereof. The applicant 
may file an opposition to any petition to deny, and the petitioners may 
file a reply to such opposition (see Sec. 1.45 of this chapter), and 
allegations of facts or denials thereof shall similarly be supported by 
affidavit. These responsive pleadings shall

[[Page 228]]

be served on the applicant or petitioners, as appropriate, and other 
parties to the proceeding.

(Sec. 303, 48 Stat. 1082, as amended; 47 U.S.C. 303)

[41 FR 20662, May 20, 1976; 41 FR 22274, June 2, 1976, as amended at 42 
FR 36459, July 15, 1977; 61 FR 10476, Mar. 14, 1996; 61 FR 59201, Nov. 
21, 1996; 64 FR 39939, July 23, 1999]



Sec. 63.53  Form.

    (a) Applications under Section 214 of the Communications Act shall 
be submitted on paper not more than 21.6 cm (8.5 in) wide and not more 
than 35.6 cm (14 in) long with a left-hand margin of 4 cm (1.5 in). This 
requirement shall not apply to original documents, or admissible copies 
thereof, offered as exhibits or to specially prepared exhibits. The 
impression shall be on one side of the paper only and shall be double-
spaced, except that long quotations shall be single-spaced and indented. 
All papers, except charts and maps, shall be typewritten or prepared by 
mechanical processing methods, other than letter press, or printed. The 
foregoing shall not apply to official publications. All copies must be 
clearly legible.
    (b) Applications submitted under Section 214 of the Communications 
Act for international services and any related pleadings that are in a 
foreign language shall be accompanied by a certified translation in 
English.

[61 FR 15733, Apr. 9, 1996, as amended at 67 FR 45392, July 9, 2002]

            Discontinuance, Reduction, Outage and Impairment



Sec. 63.60  Definitions.

    For the purposes of this part, the following definitions shall 
apply:
    (a) Discontinuance, reduction, or impairment of service includes, 
but is not limited to the following:
    (1) The closure by a carrier of a telephone exchange rendering 
interstate or foreign telephone toll service, a public toll station 
serving a community or part of a community, or a public coast station as 
defined in Sec. 80.5 of this chapter;
    (2) The reduction in hours of service by a carrier at a telephone 
exchange rendering interstate or foreign telephone toll service, at any 
public toll station (except at a toll station at which the availability 
of service to the public during any specific hours is subject to the 
control of the agent or other persons controlling the premises on which 
such office or toll station is located and is not subject to the control 
of such carrier), or at a public coast station; the term reduction in 
hours of service does not include a shift in hours which does not result 
in any reduction in the number of hours of service.
    (3) [Reserved]
    (4) The dismantling or removal from service of any trunk line by a 
carrier which has the effect of impairing the adequacy or quality of 
service rendered to any community or part of a community;
    (5) The severance by a carrier of physical connection with another 
carrier (including connecting carriers as defined in section 3(u) of the 
Communications Act of 1934, as amended) or the termination or suspension 
of the interchange of traffic with such other carrier;
    (b) Emergency discontinuance, reduction, or impairment of service 
means any discontinuance, reduction, or impairment of the service of a 
carrier occasioned by conditions beyond the control of such carrier 
where the original service is not restored or comparable service is not 
established within a reasonable time. For the purpose of this part, a 
reasonable time shall be deemed to be a period not in excess of the 
following: 10 days in the case of discontinuance, reduction, or 
impairment of service at telegraph offices operated directly by the 
carrier; 15 days in the case of jointly-operated or agency telegraph 
offices; 10 days in the case of public coast stations; and 60 days in 
all other cases;
    (c) Public toll station means a public telephone station, located in 
a community, through which a carrier provides service to the public, and 
which is connected directly to a toll line operated by such carrier.

[28 FR 13229, Dec. 5, 1963, as amended at 45 FR 6585, Jan. 29, 1980; 51 
FR 31305, Sept. 2, 1986]

[[Page 229]]



Sec. 63.61  Applicability.

    Any carrier subject to the provisions of section 214 of the 
Communications Act of 1934, as amended, except any non-dominant carrier 
as this term is defined in Sec. 61.3(u) of this chapter, proposing to 
discontinue, reduce, or impair interstate or foreign telephone or 
telegraph service to a community, or a part of a community, shall 
request authority therefor by formal application or informal request as 
specified in the pertinent sections of this part: Provided, however, 
That where service is expanded on an experimental basis for a temporary 
period of not more than 6 months, no application shall be required to 
reduce service to its status prior to such expansion but a written 
notice shall be filed with the Commission within 10 days of the 
reduction showing (a) date on which, places at which, and extent to 
which service was expanded and (b) date on which, places at which, and 
extent to which such expansion of service was discontinued:

And provided further, That a licensee of a radio station who has filed 
an application for authority to discontinue service provided by such 
station shall during the period that such application is pending before 
the Commission, continue to file appropriate applications as may be 
necessary for extension or renewal of station license in order to 
provide legal authorization for such station to continue in operation 
pending final action on the application for discontinuance of service.

[28 FR 13229, Dec. 5, 1963, as amended at 45 FR 76169, Nov. 18, 1980; 61 
FR 59201, Nov. 21, 1996]



Sec. 63.62  Type of discontinuance, reduction, or impairment of telephone or telegraph service requiring formal application.

    Authority for the following types of discontinuance, reduction, or 
impairment of service shall be requested by formal application 
containing the information required by the Commission in the appropriate 
sections to this part, except as provided in paragraph (c) of this 
section, or in emergency cases (as defined in Sec. 63.60(b)) as provided 
in Sec. 63.63:
    (a) The dismantling or removal of a trunk line (for contents of 
application see Sec. 63.500) for all domestic carriers and for dominant 
international carriers except as modified in Sec. 63.19;
    (b) The severance of physical connection or the termination or 
suspension of the interchange of traffic with another carrier (for 
contents of application, see Sec. 63.501);
    (c) [Reserved]
    (d) The closure of a public toll station where no other such toll 
station of the applicant in the community will continue service (for 
contents of application, see Sec. 63.504): Provided, however, That no 
application shall be required under this part with respect to the 
closure of a toll station located in a community where telephone toll 
service is otherwise available to the public through a telephone 
exchange connected with the toll lines of a carrier;
    (e) Any other type of discontinuance, reduction or impairment of 
telephone service not specifically provided for by other provisions of 
this part (for contents of application, see Sec. 63.505);
    (f) An application may be filed requesting authority to make a type 
of reduction in service under specified standards and conditions in lieu 
of individual applications for each instance coming within the type of 
reduction in service proposed.

[28 FR 13229, Dec. 5, 1963, as amended at 45 FR 6585, Jan. 29, 1980; 60 
FR 35509, July 10, 1995; 61 FR 15733, Apr. 9, 1996]

    Effective Date Note: At 61 FR 15733, Apr. 9, 1996, in Sec. 63.62, 
paragraph (a) was revised. This amendment contains information 
collection and recordkeeping requirements and will not become effective 
until approval has been given by the Office of Management and Budget.



Sec. 63.63  Emergency discontinuance, reduction, or impairment of service.

    (a) Application for authority for emergency discontinuance, 
reduction, or impairment of service shall be made by filing an informal 
request in quintuplicate as soon as practicable but not later than 15 
days in the case of public coast stations; or 65 days in all other 
cases, after the occurrence of the conditions which have occasioned the 
discontinuance, reduction, or impairment. The request shall make 
reference to this section and show the following:

[[Page 230]]

    (1) The effective date of such discontinuance, reduction, or 
impairment, and the identification of the service area affected;
    (2) The nature and estimated duration of the conditions causing the 
discontinuance, reduction, or impairment;
    (3) The facts showing that such conditions could not reasonably have 
been foreseen by the carrier in sufficient time to prevent such 
discontinuance, reduction, or impairment;
    (4) A description of the service involved;
    (5) The nature of service which will be available or substituted;
    (6) The effect upon rates to any person in the community;
    (7) The efforts made and to be made by applicant to restore the 
original service or establish comparable service as expeditiously as 
possible.
    (b) Authority for the emergency discontinuance, reduction, or 
impairment of service for a period of 60 days shall be deemed to have 
been granted by the Commission effective as of the date of the filing of 
the request unless, on or before the 15th day after the date of filing, 
the Commission shall notify the carrier to the contrary. Renewal of such 
authority may be requested by letter or telegram, filed with the 
Commission not later than 10 days prior to the expiration of such 60-day 
period, making reference to this section and showing that such 
conditions may reasonably be expected to continue for a further period 
and what efforts the applicant has made to restore the original or 
establish comparable service. If the same or comparable service is 
reestablished before the termination of the emergency authorization, the 
carrier shall notify the Commission promptly. However, the Commission 
may, upon specific request of the carrier and upon a proper showing, 
contained in such informal request, authorize such discontinuance, 
reduction, or impairment of service for an indefinite period or 
permanently.

[28 FR 13229, Dec. 5, 1963, as amended at 45 FR 6585, Jan. 29, 1980]



Sec. 63.65  Closure of public toll station where another toll station of applicant in the community will continue service.

    (a) Except in emergency cases (as defined in Sec. 63.60(b) and as 
provided in Sec. 63.63), authority to close a public toll station in a 
community in which another toll station of the applicant will continue 
service shall be requested by an informal request, filed in 
quintuplicate, making reference to this paragraph and showing the 
following:
    (1) Location of toll station to be closed and distance from nearest 
toll station to be retained;
    (2) Description of service area affected, including approximate 
population and character of the business of the community;
    (3) Average number of toll telephone messages sent-paid and 
received-collect for the preceding six months;
    (4) Average number of telegraph messages sent-paid and received-
collect for the preceding six months;
    (5) Statement of reasons for desiring to close the station.
    (b) Authority for closures requested under paragraph (a) of this 
section shall be deemed to have been granted by the Commission effective 
as of the 15th day following the date of filing such request unless, on 
or before the 15th day, the Commission shall notify the carrier to the 
contrary.



Sec. 63.66  Closure of or reduction of hours of service at telephone exchanges at military establishments.

    Where a carrier desires to close or reduce hours of service at a 
telephone exchange located at a military establishment because of the 
deactivation of such establishment, it may, in lieu of filing formal 
application, file in quintuplicate an informal request. Such request 
shall make reference to this section and shall set forth the class of 
office, address, date of proposed closure or reduction, description of 
service to remain or be substituted, statement as to any difference in 
charges to the public, and the reasons for the proposed closure or 
reduction. Authority for such closure or reduction shall be deemed to 
have been granted by the

[[Page 231]]

Commission, effective as of the 15th day following the date of filing of 
such request, unless, on or before the 15th day, the Commission shall 
notify the carrier to the contrary.

[45 FR 6585, Jan. 29, 1980]



Sec. 63.71  Procedures for discontinuance, reduction or impairment of service by domestic carriers.

    Any domestic carrier that seeks to discontinue, reduce or impair 
service shall be subject to the following procedures:
    (a) The carrier shall notify all affected customers of the planned 
discontinuance, reduction, or impairment of service and shall notify and 
submit a copy of its application to the public utility commission and to 
the Governor of the State in which the discontinuance, reduction, or 
impairment of service is proposed, and also to the Secretary of Defense, 
Attn. Special Assistant for Telecommunications, Pentagon, Washington, DC 
20301. Notice shall be in writing to each affected customer unless the 
Commission authorizes in advance, for good cause shown, another form of 
notice. Notice shall include the following:
    (1) Name and address of carrier;
    (2) Date of planned service discontinuance, reduction or impairment;
    (3) Points of geographic areas of service affected;
    (4) Brief description of type of service affected; and
    (5) One of the following statements:
    (i) If the carrier is non-dominant with respect to the service being 
discontinued, reduced or impaired, the notice shall state:

    The FCC will normally authorize this proposed discontinuance of 
service (or reduction or impairment) unless it is shown that customers 
would be unable to receive service or a reasonable substitute from 
another carrier or that the public convenience and necessity is 
otherwise adversely affected. If you wish to object, you should file 
your comments within 15 days after receipt of this notification. Address 
them to the Federal Communications Commission, Washington, DC 20554, 
referencing the Sec. 63.71 Application of (carrier's name). Comments 
should include specific information about the impact of this proposed 
discontinuance (or reduction or impairment) upon you or your company, 
including any inability to acquire reasonable substitute service.

    (ii) If the carrier is dominant with respect to the service being 
discontinued, reduced or impaired, the notice shall state:

    The FCC will normally authorize this proposed discontinuance of 
service (or reduction or impairment) unless it is shown that customers 
would be unable to receive service or a reasonable substitute from 
another carrier or that the public convenience and necessity is 
otherwise adversely affected. If you wish to object, you should file 
your comments within 30 days after receipt of this notification. Address 
them to the Federal Communications Commission, Washington, DC 20554, 
referencing the Sec. 63.71 Application of (carrier's name). Comments 
should include specific information about the impact of this proposed 
discontinuance (or reduction or impairment) upon you or your company, 
including any inability to acquire reasonable substitute service.

    (b) The carrier shall file with this Commission, on or after the 
date on which notice has been given to all affected customers, an 
application which shall contain the following:
    (1) Caption--``Section 63.71 Application'';
    (2) Information listed in Sec. 63.71(a) (1) through (4) above;
    (3) Brief description of the dates and methods of notice to all 
affected customers;
    (4) Whether the carrier is considered dominant or non-dominant with 
respect to the service to be discontinued, reduced or impaired; and
    (5) Any other information the Commission may require.
    (c) The application to discontinue, reduce or impair service, if 
filed by a domestic, non-dominant carrier, shall be automatically 
granted on the 31st day after its filing with the Commission without any 
Commission notification to the applicant unless the Commission has 
notified the applicant that the grant will not be automatically 
effective. The application to discontinue, reduce or impair service, if 
filed by a domestic, dominant carrier, shall be automatically granted on 
the 60th day after its filing with the Commission without any Commission 
notification to the applicant unless the Commission has notified the 
applicant that the

[[Page 232]]

grant will not be automatically effective. For purposes of this section, 
an application will be deemed filed on the date the Commission releases 
public notice of the filing.

[64 FR 39939, July 23, 1999]



Sec. 63.90  Publication and posting of notices.

    (a) Immediately upon the filing of an application or informal 
request (except a request under Sec. 63.71) for authority to close or 
otherwise discontinue the operation, or reduce the hours of service at a 
telephone exchange (except an exchange located at a military 
establishment), the applicant shall post a public notice at least 51 cm 
by 61 cm (20 inches by 24 inches), with letter of commensurate size, in 
a conspicuous place in the exchange affected, and also in the window of 
any such exchange having window space fronting on a public street at 
street level. Such notice shall be posted at least 14 days and shall 
contain the following information, as may be applicable:
    (1) Date of first posting of notice;
    (2) Name of applicant;
    (3) A statement that application has been made to the Federal 
Communications Commission;
    (4) Date when application was filed in the Commission;
    (5) A description of the discontinuance, reduction, or impairment of 
service for which authority is sought including the address or other 
appropriate identification of the exchange or station involved;
    (6) If applicant proposes to reduce hours of service, a description 
of present and proposed hours of service;
    (7) A complete description of the substitute service, if any, to be 
provided if the application is granted.
    (8) A statement that any member of the public desiring to protest or 
support the application may communicate in writing with the Federal 
Communications Commission, Washington, DC 20554, on or before a 
specified date which shall be 20 days from the date of first posting of 
the notice.
    (b) Immediately upon the filing of an application or informal 
request of the nature described in paragraph (a) of this section, the 
applicant shall also cause to be published a notice of not less than 10 
column centimeters (4 column inches) in size containing information 
similar to that specified in paragraph (a), at least once during each of 
2 consecutive weeks, in some newspaper of general circulation in the 
community or part of the community affected.
    (c) Immediately upon the filing of an application or informal 
request or upon the filing of a formal application to close a public 
toll station (except a toll station located at a military 
establishment), applicant shall post a public notice at least A3 (29.7 
cm x 42.0 cm) or 11 in x 17 in (27.9 cm x 43.2 cm) in size as provided 
in paragraph (a) of this section or, in lieu thereof, applicant shall 
cause to be published a newspaper notice as provided in paragraph (b) of 
this section.
    (d) Immediately upon the filing of any application or informal 
request for authority to discontinue, reduce, or impair service, or any 
notice of resumption of service under Sec. 63.63(b), the applicant shall 
give written notice of the filing together with a copy of such 
application to the State Commission (as defined in section 3(t) of the 
Communications Act of 1934, as amended) of each State in which any 
discontinuance, reduction or impairment is proposed.
    (e) When the posting, publication, and notification as required in 
paragraphs (a), (b), (c) and (d) of this section have been completed, 
applicant shall report such fact to the Commission, stating the name of 
the newspaper in which publication was made, the name of the Commissions 
notified, and the dates of posting, publication, and notification.

[45 FR 6585, Jan. 29, 1980, as amended at 45 FR 76169, Nov. 18, 1980; 58 
FR 44907, Aug. 25, 1993; 60 FR 35510, July 10, 1995]



Sec. 63.100  Notification of service outage.

    (a) As used in this section:
    (1) Outage is defined as a significant degradation in the ability of 
a customer to establish and maintain a channel of communications as a 
result of failure or degradation in the performance of a carrier's 
network.
    (2) Customer is defined as a user purchasing telecommunications 
service from a common carrier.

[[Page 233]]

    (3) Special offices and facilities are defined as major airports, 
major military installations, key government facilities, and nuclear 
power plants. 911 special facilities are addressed separately in 
paragraph (a)(4) of this section.
    (4) An outage which potentially affects a 911 special facility is 
defined as a significant service degradation, switch or transport, where 
rerouting to the same or an alternative answering location was not 
implemented, and involves one or more of the following situations:
    (i) Isolation of one or more Public Service Answering Points (PSAPs) 
for 24 hours or more, if the isolated PSAPs collectively serve less than 
30,000 or more access lines, based on the carrier's database of lines 
served by each PSAP; or
    (ii) Loss of call processing capabilities in the E911 tandem(s), for 
30 minutes or more, regardless of the number of customers affected; or
    (iii) Isolation of one or more PSAP(s), for 30 or more minutes, if 
the isolated PSAPs collectively serve 30,000 or more access lines, based 
on the carrier's database of lines served by each PSAP; or
    (iv) Isolation of an end office switch or host/remote cluster, for 
30 minutes or more, if the switches collectively serve, 30,000 or more 
access lines.
    (5) Major airports are defined as those airports described by the 
Federal Aviation Administration as large or medium hubs. The member 
agencies of the National Communications System (NCS) will determine 
which of their locations are ``major military installations'' and ``key 
government facilities.''
    (6) An outage which ``potentially affects'' a major airport is 
defined as an outage that disrupts 50% or more of the air traffic 
control links or other FAA communications links to any major airport, 
any outage that has caused an Air Route Traffic Control Center (ARTCC) 
or major airport to lose it radar, any ARTCC or major airport outage 
that has received any media attention of which the carrier's reporting 
personnel are aware, any outage that causes a loss of both primary and 
backup facilities at any ARTCC or major airport, and any outage to an 
ARTCC or major airport that is deemed important by the FAA as indicated 
by FAA inquiry to the carrier management personnel.
    (7) A mission-affecting outage is defined as an outage that is 
deemed critical to national security/emergency preparedness (NS/EP) 
operations of the affected facility by the National Communications 
System member agency operating the affected facility.
    (b) Any local exchange or interexchange common carrier or 
competitive access provider that operates transmission or switching 
facilities and provides access service or interstate or international 
telecommunications service, that experiences an outage which potentially 
affects 50,000 or more of its customers on any facilities which it owns, 
operates or leases, must notify the Commission if such outage continues 
for 30 or more minutes. Satellite carriers and cellular carriers are 
exempt from this reporting requirement. Notification must be served on 
the Commission's Duty Officer, on duty 24 hours a day in the FCC's 
Communications and Crisis Management Center in Washington, DC. 
Notification may be served on the Commission's Watch Officer on duty at 
the FCC's Columbia Operations Center in Columbia, MD, or at such other 
facility designated by the Commission by regulation or (at the time of 
the emergency) by public announcement only if there is a telephone 
outage or similar emergency in Washington, DC. The notification must be 
by facsimile or other record means delivered within 120 minutes of the 
carrier's first knowledge that the service outage potentially affects 
50,000 or more customers, if the outage continues for 30 or more 
minutes. Notification shall identify a contact person who can provide 
further information, the telephone number at which the contact person 
can be reached, and what information is known at the time about the 
service outage including: the date and estimated time (local time at the 
location of the outage) of commencement of the outage; the geographic 
area affected; the estimated number of customers affected; the types of 
services affected (e.g., interexchange, local, cellular); the duration 
of the outage, i.e. time

[[Page 234]]

elapsed from the estimated commencement of the outage until restoration 
of full service; the estimated number of blocked calls during the 
outage; the apparent or known cause of the incident, including the name 
and type of equipment involved and the specific part of the network 
affected; methods used to restore service; and the steps taken to 
prevent recurrences of the outage. When specifying the types of services 
affected by any reportable outage, carriers must indicate when 911 
service was disrupted and rerouting to alternative answering locations 
was not implemented. The report shall be captioned Initial Service 
Disruption Report. Lack of any of the above information shall not delay 
the filing of this report. Not later than thirty days after the outage, 
the carrier shall file with the Chief, Office of Engineering and 
Technology, a Final Service Disruption Report providing all available 
information on the service outage, including any information not 
contained in its Initial Service Disruption Report and detailing 
specifically the root cause of the outage and listing and evaluating the 
effectiveness and application in the immediate case of any best 
practices or industry standards identified by the Network Reliability 
Council to eliminate or ameliorate outages of the reported type.
    (c) Any local exchange or interexchange common carrier or 
competitive access provider that operates transmission or switching 
facilities and provides access service or interstate or international 
telecommunications service, that experiences an outage which potentially 
affects at least 30,000 and less than 50,000 of its customers on any 
facilities which it owns, operates or leases, must notify the Commission 
if such outage continues for 30 or more minutes. Satellite carriers and 
cellular carriers are exempt from this reporting requirement. 
Notification must be served on the Commission's Duty Officer, on duty 24 
hours a day in the FCC's Communications and Crisis Management Center in 
Washington, DC. Notification may be served on the Commission's Watch 
Officer on duty at the FCC's Columbia Operations Center in Columbia, MD, 
or at such other facility designated by the Commission by regulation or 
(at the time of the emergency) by public announcement only if there is a 
telephone outage or similar emergency in Washington, DC. The 
notification must be by facsimile or other record means delivered within 
3 days of the carrier's first knowledge that the service outage 
potentially affects at least 30,000 but less than 50,000 customers, if 
the outage continues for 30 or more minutes. Notification shall identify 
the carrier and a contact person who can provide further information, 
the telephone number at which the contact person can be reached, and 
what information is known at the time about the service outage 
including: the date and estimated time (local time at the location of 
the outage) of commencement of the outage; the geographic area affected; 
the estimated number of customers affected; the types of services 
affected (e.g., interexchange, local, cellular); the duration of the 
outage, i.e. time elapsed from the estimated commencement of the outage 
until restoration of full service; the estimated number of blocked calls 
during the outage; the apparent or known cause of the incident, 
including the name and type of equipment involved and the specific part 
of the network affected; methods used to restore service; and the steps 
taken to prevent recurrences of the outage. When specifying the types of 
services affected by any reportable outage, carriers must indicate when 
911 service was disrupted and rerouting to alternative answering 
locations was not implemented. The report shall be captioned Initial 
Service Disruption Report. Lack of any of the above information shall 
not delay the filing of this report. Not later than thirty days after 
the outage, the carrier shall file with the Chief, Office of Engineering 
and Technology, a Final Service Disruption Report providing all 
available information on the service outage, including any information 
not contained in its Initial Service Disruption Report and detailing 
specifically the root cause of the outage and listing and evaluating the 
effectiveness and application in the immediate case of any best 
practices or industry standards identified by the

[[Page 235]]

Network Reliability Council to eliminate or ameliorate outages of the 
reported type.
    (d) Any local exchange or interexchange carrier or competitive 
access provider that operates transmission or switching facilities and 
provides access service or interstate or international 
telecommunications service that experiences a fire-related incident in 
any facilities which it owns, operates or leases that impacts 1000 or 
more service lines must notify the Commission if the incident continues 
for a period of 30 minutes or longer. Satellite carriers and cellular 
carriers are exempt from this reporting requirement. Notification must 
be served on the Commission's Duty Officer, on duty 24 hours a day in 
the FCC's Communications and Crisis Management Center in Washington, DC. 
Notification may be served on the Commission's Watch Officer on duty in 
the FCC's Columbia Operations Center in Columbia, MD, or at such other 
facility designated by the Commission by regulation or (at the time of 
the emergency) by public announcement only if there is a telephone 
outage or similar emergency in Washington, DC. The notification must be 
by facsimile or other recorded means delivered within 3 days of the 
carrier's first knowledge that the incident is fire-related, impacting 
1000 or more lines for thirty or more minutes. Notification shall 
identify the carrier and a contact person who can provide further 
information, the telephone number at which the contact person can be 
reached, and what information is known at the time about the service 
outage including: the date and estimated time (local time at the 
location of the outage) of commencement of the outage; the geographic 
area affected; the estimated number of customers affected; the types of 
services affected (e.g., interexchange, local cellular); the duration of 
the outage, i.e. time elapsed from the estimated commencement of the 
outage until restoration of full service; the estimated number of 
blocked calls during the outage; the apparent or known cause of the 
incident, including the name and type of equipment involved and the 
specific part of the network affected; methods used to restore service; 
and the steps taken to prevent recurrences of the outage. When 
specifying the types of services affected by any reportable outage, 
carriers must indicate when 911 service was disrupted and rerouting to 
alternative answering locations was not implemented. The report shall be 
captioned Initial Service Disruption Report. Lack of any of the above 
information shall not delay the filing of this report. Not later than 
thirty days after the outage, the carrier shall file with the Chief, 
Office of Engineering and Technology, a Final Service Disruption Report 
providing all available information on the service outage, including any 
information not contained in its Initial Service Disruption Report and 
detailing specifically the root cause of the outage and listing and 
evaluating the effectiveness and application in the immediate case of 
any best practices or industry standards identified by the Network 
Reliability Council to eliminate or ameliorate outages of the reported 
type.
    (e) Any local exchange or interexchange common carrier or 
competitive access provider that operates transmission or switching 
facilities and provides access service or interstate or international 
telecommunications service, that experiences an outage on any facilities 
which it owns, operates or leases which potentially affects special 
offices and facilities must notify the Commission if such outage 
continues for 30 or more minutes regardless of the number of customers 
affected. Satellite carriers and cellular carriers are exempt from this 
reporting requirement. Notification must be served on the Commission's 
Duty Officer, on duty 24 hours a day in the FCC's Communications and 
Crisis Management Center in Washington, DC. Notification may be served 
on the Commission's Watch Officer on duty at the Columbia Operations 
Center in Columbia, MD, or at such other facility designated by the 
Commission by regulation or (at the time of the emergency) by public 
announcement only if there is a telephone outage or similar emergency in 
Washington, DC. The notification must be by facsimile or other record 
means delivered within 120 minutes of the carrier's first knowledge

[[Page 236]]

that the service outage potentially affects a special facility, if the 
outage continues for 30 or more minutes. Notification shall identify a 
contact person who can provide further information, the telephone number 
at which the contact person can be reached, and what information is 
known at the time about the service outage including: the date and 
estimated time (local time at the location of the outage) of 
commencement of the outage; the geographic area affected; the estimated 
number of customers affected; the types of services affected (e.g., 911 
emergency services, major airports); the duration of the outage, i.e. 
time elapsed from the estimated commencement of the outage until 
restoration of full service; the estimated number of blocked calls 
during the outage; the apparent or known cause of the incident, 
including the name and type of equipment involved and the specific part 
of the network affected; methods used to restore service; and the steps 
taken to prevent recurrences of the outage. When specifying the types of 
services affected by any reportable outage, carriers must indicate when 
911 service was disrupted and rerouting to alternative answering 
locations was not implemented. The report shall be captioned Initial 
Service Disruption Report. Lack of any of the above information shall 
not delay the filing of this report. Not later than thirty days after 
the outage, the carrier shall file with the Chief, Office of Engineering 
and Technology, a Final Service Disruption Report providing all 
available information on the service outage, including any information 
not contained in its Initial Service Disruption Report and detailing 
specifically the root cause of the outage and listing and evaluating the 
effectiveness and application in the immediate case of any best 
practices or industry standards identified by the Network Reliability 
Council to eliminate or ameliorate outages of the reported type. Under 
this rule, carriers are not required to report outages affecting nuclear 
power plants, major military installations and key government facilities 
to the Commission. Report at these facilities will be made according to 
the following procedures:
    (1) When there is a mission-affecting outage, the affected facility 
will report the outage to the National Communications System (NCS) and 
call the service provider in order to determine if the outage is 
expected to last 30 minutes. If the outage is not expected to, and does 
not, last 30 minutes, it will not be reported to the FCC. If it is 
expected to last 30 minutes or does last 30 minutes, the NCS, on the 
advice of the affected special facility, will either:
    (i) Forward a report of the outage to the Commission, supplying the 
information for initial reports affecting special facilities specified 
in this section of the Commission's Rules;
    (ii) Forward a report of the outage to the Commission, designating 
the outage as one affecting ``special facilities,'' but reporting it at 
a level of detail that precludes identification of the particular 
facility involved; or
    (iii) Hold the report at the NCS due to the critical nature of the 
application.
    (2) If there is to be a report to the Commission, a written or oral 
report will be given by the NCS within 120 minutes of an outage to the 
Commission's Duty Officer, on duty 24 hours a day in the FCC's 
Communications and Crisis Management Center in Washington, DC. 
Notification may be served on the Commission's Watch Officer on duty at 
the FCC's Columbia Operations Center in Columbia, MD, or at such other 
facility designated by the Commission by regulation or (at the time of 
the emergency) by public announcement only if there is a telephone 
outage or similar emergency in Washington, DC. If the report is oral, it 
is to be followed by a written report the next business day. Those 
carriers whose service failures are in any way responsible for the 
outage must consult with NCS upon its request for information.
    (3) If there is to be a report to the Commission, the service 
provider will provide a written report to the NCS, supplying the 
information for final reports for special facilities required by this 
section of the Commission's rules. The service provider's final report 
to the NCS will be filed within 28 days after the outage, allowing the 
NCS to

[[Page 237]]

then file the report with the Commission within 30 days after the 
outage. If the outage is reportable as described in paragraph (e)(2) of 
this section, and the NCS determines that the final report can be 
presented to the Commission without jeopardizing matters of national 
security or emergency preparedness, the NCS will forward the report as 
provided in either paragraphs (e)(1)(i) or (e)(1)(ii) of this section to 
the Commission.
    (f) If an outage is determined to have affected a 911 facility so as 
to be reportable as a special facilities outage, the carrier whose duty 
it is to report the outage to the FCC shall as soon as possible by 
telephone or other electronic means notify any official who has been 
designated by the management of the affected 911 facility as the 
official to be contacted by the carrier in case of a telecommunications 
outage at that facility. The carrier shall convey all available 
information to the designated official that will be useful to the 
management of the affected facility in mitigating the affects of the 
outage on callers to that facility.
    (g) In the case of LEC end offices, carriers will use the number of 
lines terminating at the office for determining whether the criteria for 
reporting an outage has been reached. In the case of IXC or LEC tandem 
facilities, carriers must, if technically possible, use real-time 
blocked calls to determine whether criteria for reporting an outage have 
been reached. Carriers must report IXC and LEC tandem outages where more 
than 150,000 calls are blocked during a period of 30 or more minutes for 
purposes of complying with the required 50,000 potentially affected 
customers threshold and must report such outages where more than 90,000 
calls are blocked during a period of 30 or more minutes for purposes of 
complying with the 30,000 potentially affected customers threshold. 
Carriers may use historical data to estimate blocked calls when required 
real-time blocked call counts are not possible. When using historical 
data, carriers must report incidents where more than 50,000 calls are 
blocked during a period of 30 or more minutes for purposes of complying 
with the required 50,000 potentially affected customers threshold and 
must report incidents where more than 30,000 calls are blocked during a 
period of 30 or more minutes for purposes of complying with the 30,000 
potentially affected customers threshold.
    (h)(1) Any local exchange or interexchange common carrier or 
competitive access provider that operates transmission or switching 
facilities and provides access services or interstate or international 
telecommunications services, the experiences an outage on any facilities 
that it owns, operates or leases that potentially affects 911 services 
must notify the Commission within the applicable period shown in the 
chart in this paragraph (h)(1) if such outage meets one of the following 
conditions, as defined in paragraph (a)(4) of this section:

----------------------------------------------------------------------------------------------------------------
              Condition                    Lines affected             Duration                   Period
----------------------------------------------------------------------------------------------------------------
Loss of E911 Tandem capability......  No limit...............  30 minutes or more....  120 minutes.
Isolation of PSAP(s)................  Under 30,000 access      24 hours or more......  120 minutes.
                                       lines served.
Isolation of PSAP(s)................  50,000 or more access    30 minutes or more....  120 minutes.
                                       lines served.
Isolation of PSAP(s)................  30,000 to 50,000 access  30 minutes or more....  3 days.
                                       lines served.
Isolation of EO switch, host/remotes  50,000 or more access    30 minutes or more....  120 minutes.
 from 911.                             lines served.
Isolation of EO switch, host/remotes  30,000 to 50,000 access  30 minutes or more....  3 days.
 from 911.                             lines served.
----------------------------------------------------------------------------------------------------------------

    (2) Satellite carriers and cellular carriers are exempted from the 
reporting requirement in this paragraph (h). Notification must be served 
on the Commission's Duty Officer, on duty 24 hours a day in the FCC's 
Communicaitons and Crisis Management Center in Washington, DC. 
Notification may be erved on the Commission's Watch Officer on duty at 
the Columbia Operations Center in COlumbia, MD, or at such other 
facility designated by the Commission by regulation or (at the time of 
thee emergency) by public announcement only if there

[[Page 238]]

is a telephone outage or similar emergency in Washington, DC. The 
notification must be by facsimile or other record means delivered within 
the notification period indicated above from the time of the carrier's 
first knowledge that the service outage ``potentially affects a 911 
special facility'' as described in paragraph (a)(4) of this section and 
summarized in the chart in paragraph (h)(1) of this section and the 
service outage has continued for the duration indicated in paragraph 
(a)(4) of this section and summarized in the chart in paragraph (h)(1) 
of this section. Notification shall identify a contact person who can 
provide further information, the telephone number at which the contact 
person can be reached, and the information known at the time 
notification is made about the service outage including: the date and 
estimated time (local time at the location of the outage) of 
commencement of the outage; the geographic area affected; the estimated 
number of customers affected; the types of services affected; the 
duration of the outage, i.e. time elapsed from the estimated 
commencement of the outage until restoration of full service; the 
estimated number of blocked calls during the outage; the apparent or 
known cause of the incident, including the name and type of equipment 
involved and the specific part of the network affected; methods used to 
restore service; and the steps taken to prevent recurrences of the 
outage. The report shall be captioned Initial Service Disruption Report. 
Lack of any of the information in this paragraph (h)(2) shall not delay 
the filing of this report. Not later than thirty days after the outage, 
the carrier shall file with the Chief, Office of Engineering and 
Technology, a Final Service Disruption Report providing all available 
information on the service outage, including any information not 
contained in its Initial Service Disruption Report and detailing 
specifically the root cause of the outage and listing and evaluating the 
effectiveness and application in the immediate case of any best 
practices or industry standards identified by the Network Reliability 
Council to eliminate or ameliorate outages of the reported type.

[59 FR 40266, Aug. 8, 1994, as amended at 60 FR 57196, Nov. 14, 1995; 62 
FR 39452, July 23, 1997; 63 FR 37499, July 13, 1998]

                   Contents of Applications; Examples



Sec. 63.500  Contents of applications to dismantle or remove a trunk line.

    The application shall contain:
    (a) The name and address of each applicant;
    (b) The name, title, and post office address of the officer to whom 
correspondence concerning the application is to be addressed;
    (c) Nature of proposed discontinuance, reduction, or impairment;
    (d) Identification of community or part of community involved and 
date on which applicant desires to make proposed discontinuance, 
reduction, or impairment effective; if for a temporary period only, 
indicate the approximate period for which authorization is desired;
    (e) Proposed new tariff listing, if any, and difference, if any, 
between present charges to the public and charges for the service to be 
substituted;
    (f) Description of the service area affected including population 
and general character of business of the community;
    (g) Name of any other carrier or carriers providing telegraph or 
telephone service to the community;
    (h) Statement of the reasons for proposed discontinuance, reduction, 
or impairment;
    (i) Statement of the factors showing that neither present nor future 
public convenience and necessity would be adversely affected by the 
granting of the application;
    (j) Description of any previous discontinuance, reduction, or 
impairment of service to the community affected by the application, 
which has been made by the applicant during the 12 months preceding 
filing of application, and statement of any present plans for future 
discontinuance, reduction, or impairment of service to such community;
    (k) A map or sketch showing:

[[Page 239]]

    (1) Routes of line proposed to be removed from service and of 
alternate lines, if any, to be retained;
    (2) Type and ownership of structures (open wire, aerial cable, 
underground cable, carrier systems, etc.);
    (3) Cities and towns along routes with approximate population of 
each, and route kilometers between the principal points;
    (4) Location of important operating centers and repeater or relay 
points;
    (5) State boundary lines through which the facilities extend;
    (l) A wire chart showing, for both the line proposed to be removed 
and the alternate lines to be retained, the regular and normal 
assignment of each wire, its method of operation, the number of channels 
and normal assignment of each;
    (m) The number of wires or cables to be removed and the kind, size, 
and length of each;
    (n) A complete statement showing how the traffic load on the line 
proposed to be removed will be diverted to other lines and the adequacy 
of such other lines to handle the increased load.

[28 FR 13229, Dec. 5, 1963, as amended at 58 FR 44907, Aug. 25, 1993]



Sec. 63.501  Contents of applications to sever physical connection or to terminate or suspend interchange of traffic with another carrier.

    The application shall contain:
    (a) The name and address of each applicant;
    (b) The name, title, and post office address of the officer to whom 
correspondence concerning the application is to be addressed;
    (c) Nature of the proposed change;
    (d) Identification of community or part of community involved and 
date on which applicant desires to make proposed discontinuance, 
reduction, or impairment effective; if for a temporary period only, 
indicate the approximate period for which authorization is desired;
    (e) Proposed new tariff listing, if any, and differences, if any, 
between present charges to the public and charges for the service to be 
substituted;
    (f) Description of the service area affected including population 
and general character of business of the community;
    (g) Name of any other carrier or carriers providing telegraph or 
telephone service to the community;
    (h) Statement of the reasons for proposed discontinuance, reduction, 
or impairment;
    (i) Statement of the factors showing that neither present nor future 
public convenience and necessity would be adversely affected by the 
granting of the application;
    (j) Description of any previous discontinuance, reduction, or 
impairment of service to the community affected by the application, 
which has been made by the applicant during the 12 months preceding 
filing of application, and statement of any present plans for future 
discontinuance, reduction, or impairment of service to such community;
    (k) Name of other carrier;
    (l) Points served through such physical connection or interchange;
    (m) Description of the service involved;
    (n) Statement as to how points served by means of such physical 
connection or interchange will be served thereafter;
    (o) Amount of traffic interchanged for each month during preceding 
6-month period;
    (p) Statement as to whether severance of physical connection or 
termination or suspension of interchange of traffic is being made with 
consent of other carrier.



Sec. 63.504  Contents of applications to close a public toll station 

where no other such toll station of the applicant in the community will continue service 
          and where telephone toll service is not otherwise available to 
          the public through a telephone exchange connected with the 
          toll lines of a carrier.

    The application shall contain:
    (a) The name and address of each applicant;
    (b) The name, title, and post office address of the officer to whom 
correspondence concerning the application is to be addressed;
    (c) Nature of proposed discontinuance, reduction, or impairment;

[[Page 240]]

    (d) Identification of community or part of community involved and 
date on which applicant desires to make proposed discontinuance, 
reduction, or impairment effective; if for a temporary period only, 
indicate the approximate period for which authorization is desired;
    (e) Proposed new tariff listing, if any, and difference, if any, 
between present charges to the public and charges for the service to be 
substituted, if any;
    (f) Description of the service area affected including population 
and general character of business of the community;
    (g) Name of other carrier or carriers, if any, which will provide 
toll station service in the community;
    (h) Statement of the reasons for proposed discontinuance, reduction, 
or impairment;
    (i) Statement of the factors showing that neither present nor future 
public convenience and necessity would be adversely affected by the 
granting of the application;
    (j) Description of any previous discontinuance, reduction, or 
impairment of service to the community affected by the application, 
which has been made by the applicant during the 12 months preceding 
filing of application, and statement of any present plans for future 
discontinuance, reduction, or impairment of service to such community;
    (k) Description of the service involved, including a statement of 
the number of toll telephone messages or telegraph messages sent-paid 
and received-collect, and the revenues from such traffic, in connection 
with the service proposed to be discontinued for each of the past 6 
months; and, if the volume of such traffic handled in the area has 
decreased during recent years, the reasons therefor.



Sec. 63.505  Contents of applications for any type of discontinuance, reduction, or impairment of telephone service not specifically provided for in this part.

    The application shall contain:
    (a) The name and address of each applicant;
    (b) The name, title, and post office address of the officer to whom 
correspondence concerning the application is to be addressed;
    (c) Nature of proposed discontinuance, reduction, or impairment;
    (d) Identification of community or part of community involved and 
date on which applicant desires to make proposed discontinuance, 
reduction or impairment effective, if for a temporary period only, 
indicate the approximate period for which authorization is desired;
    (e) Proposed new tariff listing, if any, and difference, if any, 
between present charges to the public and charges for the service to be 
substituted;
    (f) Description of the service area affected including population 
and general character of business of the community;
    (g) Name of any other carrier or carriers providing telephone 
service to the community;
    (h) Statement of the reasons for proposed discontinuance, reduction, 
or impairment;
    (i) Statement of the factors showing that neither present nor future 
public convenience and necessity would be adversely affected by the 
granting of the application;
    (j) Description of any previous discontinuance, reduction, or 
impairment of service to the community affected by the application, 
which has been made by the applicant during the 12 months preceding 
filing of application, and statement of any present plans for future 
discontinuance, reduction, or impairment of service to such community;
    (k) Description of the service involved, including:
    (1) Existing telephone service by the applicant available to the 
community or part thereof involved;
    (2) Telephone service (available from applicant or others) which 
would remain in the community or part thereof involved in the event the 
application is granted;
    (l) A statement of the number of toll messages sent-paid and 
received-collect and the revenues from such traffic in connection with 
the service proposed to be discontinued, reduced, or impaired for each 
of the past 6 months;

[[Page 241]]

and, if the volume of such traffic handled in the area has decreased 
during recent years, the reasons therefor.

[45 FR 6586, Jan. 29, 1980]



Sec. 63.601  Contents of applications for authority to reduce the hours of service of public coast stations under the conditions specified in Sec. 63.70.

                        F.C.C. File No. T-D-----

                                            Month -------- Year --------
          ______________________________________________________________
                                               (Name of applicant)      
          ______________________________________________________________
                                            (Address of applicant)      

    In the matter of Proposed Reduction in Hours of Service of a Public 
Coast Station Pursuant to Sec. 63.70 of the Commission's rules.

Data regarding public coast station_____________________________________

                                                (Call and address)      
Present hours:
  Monday through Friday_________________________________________________
  Saturday______________________________________________________________
  Sunday________________________________________________________________
Proposed hours:
  Monday through Friday_________________________________________________
  Saturday______________________________________________________________
  Sunday________________________________________________________________
Proposed effective time and date of change

Average number of messages handled for month of ------------, 19--

  during total hours to be deleted______________________________________

  during maximum hour to be deleted_____________________________________

    Data regarding substitute service to be provided by other public 
coast stations available and capable of providing service to the 
community affected, or in the marine area served by the public coast 
station involved:

------------------------------------------------------------------------
                                                    Hours of service
                                              --------------------------
     Station call and location       Operated   Monday
                                        by       thru   Saturday  Sunday
                                                Friday
------------------------------------------------------------------------
 
 
 
------------------------------------------------------------------------

    Request for Designation as a Recognized Private Operating Agency



Sec. 63.701  Contents of application.

    Except as otherwise provided in this part, any party requesting 
designation as a recognized private operating agency within the meaning 
of the International Telecommunication Convention shall request such 
designation by filing an original and two copies of an application 
stating the nature of the services to be provided and a statement in the 
applicant's own words but which makes clear that the applicant is aware 
that it is obligated under Article 44 of the Convention to obey the 
mandatory provisions thereof, and all regulations promulgated 
thereunder, and a pledge that it will engage in no conduct or operations 
which otherwise obey the Convention and regulations in all respects. The 
applicant should also include a statement that it is aware that failure 
to comply will result in an order from the Federal Communications 
Commission to cease and desist from future violations of an ITU 
regulation and may result in revocation of its recognized private 
operating agency status by the United States Department of State. Such 
statement must include the following information where applicable:
    (a) The name and address of each applicant;
    (b) The Government, State, or Territory under the laws of which each 
corporate applicant is organized;
    (c) The name, title and post office address of the officer of a 
corporate applicant, or representative of a non-corporate applicant, to 
whom correspondence concerning the application is to be addressed;
    (d) A statement of the ownership of a non-corporate applicant, or 
the ownership of the stock of a corporate applicant, including an 
indication whether the applicant or its stock is owned directly or 
indirectly by an alien;
    (e) A copy of each corporate applicant's articant's articles of 
incorporation (or its equivalent) and of its corporate bylaws;
    (f) A statement whether the applicant is a carrier subject to 
section 214 of the Communications Act, an operator of broadcast or other 
radio facilities, licensed under title III of the Act, capable of 
causing harmful interference with the radio transmissions of other 
countries, or a non-carrier provider of services classed as ``enhanced'' 
under Sec. 64.702(a);

[[Page 242]]

    (g) A statement that the services for which designated as a 
recognized private operating agency is sought will be extended to a 
point outside the United States or are capable of causing harmful 
interference of other radio transmission and a statement of the nature 
of the services to be provided;
    (h) A statement setting forth the points between which the services 
are to be provided; and
    (i) A statement as to whether covered services are provided by 
facilities owned by the applicant, by facilities leased from another 
entity, or other arrangement and a description of the arrangement.

[51 FR 18448, May 20, 1986]



Sec. 63.702  Form.

    Application under Sec. 63.701 shall be submitted in the form 
specified in Sec. 63.53 for applications under section 214 of the 
Communications Act.

[51 FR 18448, May 20, 1986]



PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS--Table of Contents




                    Subpart A--Traffic Damage Claims

Sec.
64.1  Traffic damage claims.

     Subpart B--Restrictions on Indecent Telephone Message Services

64.201  Restrictions on indecent telephone message services.

     Subpart C--Furnishing of Facilities to Foreign Governments for 
                      International Communications

64.301  Furnishing of facilities to foreign governments for 
          international communications.

   Subpart D--Procedures for Handling Priority Services in Emergencies

64.401  Policies and procedures for provisioning and restoring certain 
          telecommunications services in emergencies.
64.402  Policies and procedures for the provision of priority access 
          service by commercial mobile radio service providers.

       Subpart E--Use of Recording Devices by Telephone Companies

64.501  Recording of telephone conversations with telephone companies.

   Subpart F--Telecommunications Relay Services and Related Customer 
            Premises Equipment for Persons With Disabilities

64.601  Definitions.
64.602  Jurisdiction.
64.603  Provision of services.
64.604  Mandatory minimum standards.
64.605  State certification.
64.606  Furnishing related customer premises equipment.
64.607  Provision of hearing aid compatible telephones by exchange 
          carriers.
64.608  Enforcement of related customer premises equipment rules.

    Subpart G--Furnishing of Enhanced Services and Customer-Premises 
Equipment by Communications Common Carriers; Telephone Operator Services

64.702  Furnishing of enhanced services and customer-premises equipment.
64.703  Consumer information.
64.704  Call blocking prohibited.
64.705  Restrictions on charges related to the provision of operator 
          services.
64.706  Minimum standards for the routing and handling of emergency 
          telephone calls.
64.707  Public dissemination of information by providers of operator 
          services.
64.708  Definitions.
64.709  Informational tariffs.
64.710  Operator services for prison inmate phones.

  Subpart H--Extension of Unsecured Credit for Interstate and Foreign 
        Communications Services to Candidates for Federal Office

64.801  Purpose.
64.802  Applicability.
64.803  Definitions.
64.804  Rules governing the extension of unsecured credit to candidates 
          or persons on behalf of such candidates for Federal office for 
          interstate and foreign common carrier communication services.

                     Subpart I--Allocation of Costs

64.901  Allocation of costs.
64.902  Transactions with affiliates.
64.903  Cost allocation manuals.
64.904  Independent audits.
64.905  Annual certification.

[[Page 243]]

  Subpart J--International Settlements Policy and Modification Requests

64.1001  International settlements policy and modification requests.

                Subpart K--Changing Long Distance Service

64.1100  Definitions.
64.1110  State notification of election to administer FCC rules.
64.1120  Verification of orders for telecommunications service.
64.1130  Letter of agency form and content.
64.1140  Carrier liability for slamming.
64.1150  Procedures for resolution of unauthorized changes in preferred 
          carrier.
64.1160  Absolution procedures where the subscriber has not paid 
          charges.
64.1170  Reimbursement procedures where the subscriber has paid charges.
64.1180  Reporting requirement.
64.1190  Preferred carrier freezes.
64.1195  Registration requirement.

            Subpart L--Restrictions on Telephone Solicitation

64.1200  Delivery restrictions.
64.1201  Restrictions on billing name and address disclosure.

                Subpart M--Provision of Payphone Service

64.1300  Payphone compensation obligation.
64.1301  Per-payphone compensation.
64.1310  Payphone compensation procedures.
64.1320  Payphone compensation verification and reports.
64.1330  State review of payphone entry and exit regulations and public 
          interest payphones.
64.1340  Right to negotiate.

                   Subpart N--Expanded Interconnection

64.1401  Expanded interconnection.
64.1402  Rights and responsibilities of interconnectors.

    Subpart O--Interstate Pay-Per-Call and Other Information Services

64.1501  Definitions.
64.1502  Limitations on the provision of pay-per-call services.
64.1503  Termination of pay-per-call and other information programs.
64.1504  Restrictions on the use of toll-free numbers.
64.1505  Restrictions on collect telephone calls.
64.1506  Number designation.
64.1507  Prohibition on disconnection or interruption of service for 
          failure to remit pay-per-call and similar service charges.
64.1508  Blocking access to 900 service.
64.1509  Disclosure and dissemination of pay-per-call information.
64.1510  Billing and collection of pay-per-call and similar service 
          charges.
64.1511  Forgiveness of charges and refunds.
64.1512  Involuntary blocking of pay-per-call services.
64.1513  Verification of charitable status.
64.1514  Generation of signalling tones.
64.1515  Recovery of costs.

           Subpart P--Calling Party Telephone Number; Privacy

64.1600  Definitions.
64.1601  Delivery requirements and privacy restrictions.
64.1602  Restrictions on use and sale of telephone subscriber 
          information provided pursuant to automatic number 
          identification or charge number services.
64.1603  Customer notification.
64.1604  Effective date.

  Subpart Q--Implementation of Section 273(d)(5) of the Communications 
          Act: Dispute Resolution Regarding Equipment Standards

64.1700  Purpose and scope.
64.1701  Definitions.
64.1702  Procedures.
64.1703  Dispute resolution default process.
64.1704  Frivolous disputes/penalties.

        Subpart R--Geographic Rate Averaging and Rate Integration

64.1801  Geographic rate averaging and rate integration.

 Subpart S--Nondominant Interexchange Carrier Certifications Regarding 
       Geographic Rate Averaging and Rate Integration Requirements

64.1900  Nondominant interexchange carrier certifications regarding 
          geographic rate averaging and rate integration requirements.

  Subpart T--Separate Affiliate Requirements for Incumbent Independent 
  Local Exchange Carriers That Provide In-Region, Interstate Domestic 
Interexchange Services or In-Region International Interexchange Services

64.1901  Basis and purpose.
64.1902  Terms and definitions.
64.1903  Obligations of all incumbent independent local exchange 
          carriers.

[[Page 244]]

           Subpart U--Customer Proprietary Network Information

64.2001  Basis and purpose.
64.2003  Definitions.
64.2005  Use of customer proprietary network information without 
          customer approval.
64.2007  Notice and approval required for use of customer proprietary 
          network information.
64.2008  Notice required for use of customer proprietary network 
          information.
64.2009  Safeguards required for use of customer proprietary network 
          information.

  Subpart V--Telecommunications Carrier Systems Security and Integrity 
   Pursuant to the Communications Assistance for Law Enforcement Act 
                                 (CALEA)

64.2102  Definitions.
64.2103  Policies and procedures for employee supervision and control.
64.2104  Maintaining secure and accurate records.
64.2105  Submission of policies and procedures and commission review.
64.2106  Penalties.

  Subpart W--Required New Capabilities Pursuant to the Communications 
               Assistance for Law Enforcement Act (CALEA)

64.2200  Purpose.
64.2201  Scope.
64.2202  Definitions.
64.2203  Capabilities that must be provided by a wireline 
          telecommunications carrier.

                 Subpart X--Subscriber List Information

64.2301  Basis and purpose.
64.2305  Definitions.
64.2309  Provision of subscriber list information.
64.2313  Timely basis.
64.2317  Unbundled basis.
64.2321  Nondiscriminatory rates, terms, and conditions.
64.2325  Reasonable rates, terms, and conditions.
64.2329  Format.
64.2333  Burden of proof.
64.2337  Directory publishing purposes.
64.2341  Record keeping.
64.2345  Primary advertising classification.

      Subpart Y--Truth-in-Billing Requirements for Common Carriers

64.2400  Purpose.
64.2401  Scope.

    Subpart Z--Prohibition on Exclusive Telecommunications Contracts

64.2500   Prohibited agreements.
64.2501   Scope of limitation.
64.2502   Effect of state law or regulation.

            Subpart AA--Universal Emergency Telephone Number

64.3000  Definitions.
64.3001  Obligation to transmit 911 calls.
64.3002  Transition to 911 as the universal emergency telephone number.
64.3003  Obligation for providing a permissive dialing period.
64.3004  Obligation for providing an intercept message.

Appendix A to Part 64--Telecommunications Service Priority (TSP) System 
          for National Security Emergency Preparedness (NSEP)
Appendix B to Part 64--Priority Access Service (PAS) for National 
          Security and Emergency Preparedness (NSEP)

    Authority: 47 U.S.C. 151, 154, 201, 202, 205, 218-220, and 332 
unless otherwise noted. Interpret or apply sections 201, 218, 225, 226, 
227, 229, 332, 48 Stat. 1070, as amended. 47 U.S.C. 201-204, 208, 225, 
226, 227, 229, 332, 501 and 503 unless otherwise noted.

    Effective Date Note: At 67 FR 9616, Mar. 4, 2002, the authority 
citation for part 64 was revised, effective Jan. 1, 2003. For the 
convenience of the user, the revised text is set forth as follows:

      

    Authority: 47 U.S.C. 154, 47 U.S.C. 225, 47 U.S.C. 251(e)(1), 47 
U.S.C. 276. 151, 154, 201, 202, 205, 218-220, 254, 276, 302, 303, and 
337 unless otherwise noted. Interpret or apply sections 201, 218, 225, 
226, 227, 229, 332, 48 Stat. 1070, as amended. 47 U.S.C. 201-204, 208, 
225, 226, 227, 229, 332, 501 and 503 unless otherwise noted.

    Source: 28 FR 13239, Dec. 5, 1963, unless otherwise noted.



                    Subpart A--Traffic Damage Claims



Sec. 64.1  Traffic damage claims.

    (a) Each carrier engaged in furnishing radio-telegraph, wire-
telegraph, or ocean-cable service shall maintain separate files for each 
damage claim of a traffic nature filed with the carrier, showing the 
name, address, and nature of business of the claimant, the basis for the 
claim, disposition made, and all correspondence, reports, and records 
pertaining thereto. Such

[[Page 245]]

files shall be preserved in accordance with existing rules of the 
Commission (part 42 of this chapter) and at points (one or more) to be 
specifically designated by each carrier.
    (b) The aforementioned carriers shall make no payment as a result of 
any traffic damage claim if the amount of the payment would be in excess 
of the total amount collected by the carrier on the message or messages 
from which the claim arose unless such claim be presented to the carrier 
in writing signed by the claimant and setting forth the reason for the 
claim.



     Subpart B--Restrictions on Indecent Telephone Message Services



Sec. 64.201  Restrictions on indecent telephone message services.

    (a) It is a defense to prosecution for the provision of indecent 
communications under section 223(b)(2) of the Communications Act of 
1934, as amended (the Act), 47 U.S.C. 223(b)(2), that the defendant has 
taken the action set forth in paragraph (a)(1) of this section and, in 
addition, has complied with the following: Taken one of the actions set 
forth in paragraphs (a)(2), (3), or (4) of this section to restrict 
access to prohibited communications to persons eighteen years of age or 
older, and has additionally complied with paragraph (a)(5) of this 
section, where applicable:
    (1) Has notified the common carrier identified in section 223(c)(1) 
of the Act, in writing, that he or she is providing the kind of service 
described in section 223(b)(2) of the Act.
    (2) Requires payment by credit card before transmission of the 
message; or
    (3) Requires an authorized access or identification code before 
transmission of the message, and where the defendant has:
    (i) Issued the code by mailing it to the applicant after reasonably 
ascertaining through receipt of a written application that the applicant 
is not under eighteen years of age; and
    (ii) Established a procedure to cancel immediately the code of any 
person upon written, telephonic or other notice to the defendant's 
business office that such code has been lost, stolen, or used by a 
person or persons under the age of eighteen, or that such code is no 
longer desired; or
    (4) Scrambles the message using any technique that renders the audio 
unintelligible and incomprehensible to the calling party unless that 
party uses a descrambler; and,
    (5) Where the defendant is a message sponsor subscriber to mass 
announcement services tariffed at this Commission and such defendant 
prior to the transmission of the message has requested in writing to the 
carrier providing the public announcement service that calls to this 
message service be subject to billing notification as an adult telephone 
message service.
    (b) A common carrier within the District of Columbia or within any 
State, or in interstate or foreign commerce, shall not, to the extent 
technically feasible, provide access to a communication described in 
section 223(b) of the Act from the telephone of any subscriber who has 
not previously requested in writing the carrier to provide access to 
such communication if the carrier collects from subscribers an 
identifiable charge for such communication that the carrier remits, in 
whole or in part, to the provider of such communication.

[52 FR 17761, May 12, 1987, as amended at 55 FR 28916, July 16, 1990]



     Subpart C--Furnishing of Facilities to Foreign Governments for 
                      International Communications



Sec. 64.301  Furnishing of facilities to foreign governments for international communications.

    Common carriers by wire and radio shall, in accordance with section 
201 of the Communications Act, furnish services and facilities for 
communications to any foreign government upon reasonable demand 
therefor: Provided, however, That, if a foreign government fails or 
refuses, upon reasonable demand, to furnish particular services and 
facilities to the United States Government for communications between 
the territory of that government and the United States or any other 
point, such carriers shall, to the extent specifically ordered by the 
Commission, deny equivalent services or facilities in

[[Page 246]]

the United States to such foreign government for communications between 
the United States and the territory of that foreign government or any 
other point.

(Secs. 201, 214, 303, 308, 48 Stat. 1075, 1082, 1085; 47 U.S.C. 201, 
214, 303, 308)

[28 FR 13242, Dec. 5, 1963]



   Subpart D--Procedures for Handling Priority Services in Emergencies



Sec. 64.401  Policies and procedures for provisioning and restoring certain telecommunications services in emergencies.

    The communications common carrier shall maintain and provision and, 
if disrupted, restore facilities and services in accordance with 
policies and procedures set forth in Appendix A to this part.

[65 FR 48396, Aug. 8, 2000]



Sec. 64.402  Policies and procedures for the provision of priority access service by commercial mobile radio service providers.

    Commercial mobile radio service providers that elect to provide 
priority access service to National Security and Emergency Preparedness 
personnel shall provide priority access service in accordance with the 
policies and procedures set forth in Appendix B to this part.

[65 FR 48396, Aug. 8, 2000]



       Subpart E--Use of Recording Devices by Telephone Companies



Sec. 64.501  Recording of telephone conversations with telephone companies.

    No telephone common carrier, subject in whole or in part to the 
Communications Act of 1934, as amended, may use any recording device in 
connection with any interstate or foreign telephone conversation between 
any member of the public, on the one hand, and any officer, agent or 
other person acting for or employed by any such telephone common 
carrier, on the other hand, except under the following conditions:
    (a) Where such use shall be preceded by verbal or written consent of 
all parties to the telephone conversation, or
    (b) Where such use shall be preceded by verbal notification which is 
recorded at the beginning, and as part of the call, by the recording 
party, or
    (c) Where such use shall be accompanied by an automatic tone warning 
device, which will automatically produce a distinct signal that is 
repeated at regular intervals during the course of the telephone 
conversation when the recording device is in use. Provided That:
    (1) The characteristics of the warning tone shall be the same as 
those specified in the Orders of this Commission adopted by it in ``Use 
of Recording Devices in Connection With Telephone Service,'' Docket 
6787, 11 FCC 1033 (1947); 12 FCC 1005 (November 26, 1947); 12 FCC 1008 
(May 20, 1948).
    (d) That the characteristics of the warning tone shall be the same 
as those specified in the Orders of this Commission adopted by it in 
``Use of Recording Devices in Connection With Telephone Service,'' 
Docket 6787; 11 F.C.C. 1033 (1947); 12 F.C.C. 1005 (November 26, 1947); 
12 F.C.C. 1008 (May 20, 1948);
    (e) That no recording device shall be used unless it can be 
physically connected to and disconnected from the telephone line or 
switched on and off.

(Secs. 2, 3, 4, 5, 301, 303, 307, 308, 309, 315, 317; 48 Stat., as 
amended, 1064, 1065, 1066, 1068, 1081, 1082, 1083, 1084, 1085, 1089; 47 
U.S.C. 152, 153, 154, 155, 301, 303, 307, 308, 309, 315, 317)

[32 FR 11275, Aug. 3, 1967, as amended at 46 FR 29480, June 2, 1981; 52 
FR 3654, Feb. 5, 1987]



   Subpart F--Telecommunications Relay Services and Related Customer 
            Premises Equipment for Persons With Disabilities

    Source: 56 FR 36731, Aug. 1, 1991, unless otherwise noted.



Sec. 64.601  Definitions.

    As used in this subpart, the following definitions apply:
    (1) 711. The abbreviated dialing code for accessing all types of 
relay services anywhere in the United States.

[[Page 247]]

    (2) American Sign Language (ASL). A visual language based on hand 
shape, position, movement, and orientation of the hands in relation to 
each other and the body.
    (3) ASCII. An acronym for American Standard Code for Information 
Interexchange which employs an eight bit code and can operate at any 
standard transmission baud rate including 300, 1200, 2400, and higher.
    (4) Baudot. A seven bit code, only five of which are information 
bits. Baudot is used by some text telephones to communicate with each 
other at a 45.5 baud rate.
    (5) Common carrier or carrier. Any common carrier engaged in 
interstate Communication by wire or radio as defined in section 3(h) of 
the Communications Act of 1934, as amended (the Act), and any common 
carrier engaged in intrastate communication by wire or radio, 
notwithstanding sections 2(b) and 221(b) of the Act.
    (6) Communications assistant (CA). A person who transliterates or 
interprets conversation between two end users of TRS. CA supersedes the 
term ``TDD operator.''
    (7) Hearing carry over (HCO). A reduced form of TRS where the person 
with the speech disability is able to listen to the other end user and, 
in reply, the CA speaks the text as typed by the person with the speech 
disability. The CA does not type any conversation.
    (8) Telecommunications relay services (TRS). Telephone transmission 
services that provide the ability for an individual who has a hearing or 
speech disability to engage in communication by wire or radio with a 
hearing individual in a manner that is functionally equivalent to the 
ability of an individual who does not have a hearing or speech 
disability to communicate using voice communication services by wire or 
radio. Such term includes services that enable two-way communication 
between an individual who uses a text telephone or other nonvoice 
terminal device and an individual who does not use such a device, 
speech-to-speech services, video relay services and non-English relay 
services. TRS supersedes the terms ``dual party relay system,'' 
``message relay services,'' and ``TDD Relay.''
    (9) Text telephone (TTY). A machine that employs graphic 
communication in the transmission of coded signals through a wire or 
radio communication system. TTY supersedes the term ``TDD'' or 
``telecommunications device for the deaf,'' and TT.
    (10) Voice carry over (VCO). A reduced form of TRS where the person 
with the hearing disability is able to speak directly to the other end 
user. The CA types the response back to the person with the hearing 
disabty. The CA does not voice the conversation.
    (11) Speech-to-speech relay service (STS). A telecommunications 
relay service that allows people with speech disabilities to communicate 
with voice telephone users through the use of specially trained CAs who 
understand the speech patterns of persons with disabilities and can 
repeat the words spoken by that person.
    (12) Video relay service (VRS). A telecommunications relay service 
that allows people with hearing or speech disabilities who use sign 
language to communicate with voice telephone users through video 
equipment. The video link allows the CA to view and interpret the 
party's signed conversation and relay the conversation back and forth 
with a voice caller.
    (13) Non-English language relay service. A telecommunications relay 
service that allows persons with hearing or speech disabilities who use 
languages other than English to communicate with voice telephone users 
in a shared language other than English, through a CA who is fluent in 
that language.
    (14) Qualified interpreter. An interpreter who is able to interpret 
effectively, accurately, and impartially, both receptively and 
expressively, using any necessary specialized vocabulary.

[65 FR 38435, June 21, 2000, as amended at 66 FR 54165, Oct. 26, 2001]



Sec. 64.602  Jurisdiction.

    Any violation of this subpart F by any common carrier engaged in 
intrastate communication shall be subject to the same remedies, 
penalties, and

[[Page 248]]

procedures as are applicable to a violation of the Act by a common 
carrier engaged in interstate communication.

[65 FR 38436, June 21, 2000]



Sec. 64.603  Provision of services.

    Each common carrier providing telephone voice transmission services 
shall provide, not later than July 26, 1993, in compliance with the 
regulations prescribed herein, throughout the area in which it offers 
services, telecommunications relay services, individually, through 
designees, through a competitively selected vendor, or in concert with 
other carriers. Speech-to-speech relay service and interstate Spanish 
language relay service shall be provided by March 1, 2001. In addition, 
each common carrier providing telephone voice transmission services 
shall provide, not later than October 1, 2001, access via the 711 
dialing code to all relay services as a toll free call. A common carrier 
shall be considered to be in compliance with these regulations:
    (a) With respect to intrastate telecommunications relay services in 
any state that does not have a certified program under Sec. 64.605 and 
with respect to interstate telecommunications relay services, if such 
common carrier (or other entity through which the carrier is providing 
such relay services) is in compliance with Sec. 64.604; or
    (b) With respect to intrastate telecommunications relay services in 
any state that has a certified program under Sec. 64.605 for such state, 
if such common carrier (or other entity through which the carrier is 
providing such relay services) is in compliance with the program 
certified under Sec. 64.605 for such state.

[65 FR 38436, June 21, 2000, as amended at 66 FR 67114, Dec. 28, 2001]



Sec. 64.604  Mandatory minimum standards.

    The standards in this section are applicable December 18, 2000, 
except as stated in paragraphs (c)(2) and (c)(7) of this section.
    (a) Operational standards--(1) Communications assistant (CA). TRS 
providers are responsible for requiring that CAs be sufficiently trained 
to effectively meet the specialized communications needs of individuals 
with hearing and speech disabilities; and that CAs have competent skills 
in typing, grammar, spelling, interpretation of typewritten ASL, and 
familiarity with hearing and speech disability cultures, languages and 
etiquette. CAs must possess clear and articulate voice communications. 
CAs must provide a typing speed of a minimum of 60 words per minute. 
Technological aids may be used to reach the required typing speed. 
Providers must give oral-to-type tests of CA speed. TRS providers are 
responsible for requiring that VRS CAs are qualified interpreters. A 
``qualified interpreter'' is able to interpret effectively, accurately, 
and impartially, both receptively and expressively, using any necessary 
specialized vocabulary.
    (2) Confidentiality and conversation content. (i) Except as 
authorized by section 705 of the Communications Act, 47 U.S.C. 605, CAs 
are prohibited from disclosing the content of any relayed conversation 
regardless of content, and with a limited exception for STS CAs, from 
keeping records of the content of any conversation beyond the duration 
of a call, even if to do so would be inconsistent with state or local 
law. STS CAs may retain information from a particular call in order to 
facilitate the completion of consecutive calls, at the request of the 
user. The caller may request the STS CA to retain such information, or 
the CA may ask the caller if he wants the CA to repeat the same 
information during subsequent calls. The CA may retain the information 
only for as long as it takes to complete the subsequent calls.
    (ii) CAs are prohibited from intentionally altering a relayed 
conversation and, to the extent that it is not inconsistent with 
federal, state or local law regarding use of telephone company 
facilities for illegal purposes, must relay all conversation verbatim 
unless the relay user specifically requests summarization, or if the 
user requests interpretation of an ASL call. An STS CA may facilitate 
the call of an STS user with a speech disability so long as the CA does 
not interfere with the independence of the user, the user maintains 
control of the conversation, and the user does not object. Appropriate 
measures must be taken by

[[Page 249]]

relay providers to ensure that confidentiality of VRS users is 
maintained.
    (3) Types of calls. Consistent with the obligations of common 
carrier operators, CAs are prohibited from refusing single or sequential 
calls or limiting the length of calls utilizing relay services. TRS 
shall be capable of handling any type of call normally provided by 
common carriers and the burden of proving the infeasibility of handling 
any type of call will be placed on the carriers. Providers of TRS are 
permitted to decline to complete a call because credit authorization is 
denied.
    (4) Handling of emergency calls. Providers must use a system for 
incoming emergency calls that, at a minimum, automatically and 
immediately transfers the caller to the nearest Public Safety Answering 
Point (PSAP). In addition, a CA must pass along the caller's telephone 
number to the PSAP when a caller disconnects before being connected to 
emergency services.
    (5) In-call replacement of CAs. CAs answering and placing a TTY-
based TRS or VRS call must stay with the call for a minimum of ten 
minutes. CAs answering and placing an STS call must stay with the call 
for a minimum of fifteen minutes.
    (6) CA gender preferences. TRS providers must make best efforts to 
accommodate a TRS user's requested CA gender when a call is initiated 
and, if a transfer occurs, at the time the call is transferred to 
another CA.
    (7) STS called numbers. Relay providers must offer STS users the 
option to maintain at the relay center a list of names and telephone 
numbers which the STS user calls. When the STS user requests one of 
these names, the CA must repeat the name and state the telephone number 
to the STS user. This information must be transferred to any new STS 
provider.
    (b) Technical standards--(1) ASCII and Baudot. TRS shall be capable 
of communicating with ASCII and Baudot format, at any speed generally in 
use.
    (2) Speed of answer. TRS shall include adequate staffing to provide 
callers with efficient access under projected calling volumes, so that 
the probability of a busy response due to CA unavailability shall be 
functionally equivalent to what a voice caller would experience in 
attempting to reach a party through the voice telephone network. TRS 
shall, except during network failure, answer 85% of all calls within 10 
seconds by any method which results in the caller's call immediately 
being placed, not put in a queue or on hold. The ten seconds begins at 
the time the call is delivered to the TRS center's network. The call is 
considered delivered when the relay center's equipment accepts the call 
from the local exchange carrier and the public switched network actually 
delivers the call to the TRS center. Abandoned calls shall be included 
in the speed-of-answer calculation. A provider's compliance with this 
rule shall be measured on a daily basis. The system shall be designed to 
a P.01 standard. A LEC shall provide the call attempt rates and the 
rates of calls blocked between the LEC and the relay center to relay 
administrators and relay centers upon request.
    (3) Equal access to interexchange carriers. TRS users shall have 
access to their chosen interexchange carrier through the TRS, and to all 
other operator services, to the same extent that such access is provided 
to voice users.
    (4) TRS facilities. TRS shall operate every day, 24 hours a day. TRS 
shall have redundancy features functionally equivalent to the equipment 
in normal central offices, including uninterruptible power for emergency 
use. TRS shall transmit conversations between TTY and voice callers in 
real time. Adequate network facilities shall be used in conjunction with 
TRS so that under projected calling volume the probability of a busy 
response due to loop trunk congestion shall be functionally equivalent 
to what a voice caller would experience in attempting to reach a party 
through the voice telephone network. Relay services that are not 
mandated by this Commission are not required to be provided every day, 
24 hours a day.
    (5) Technology. No regulation set forth in this subpart is intended 
to discourage or impair the development of improved technology that 
fosters the availability of telecommunications to person with 
disabilities. VCO and HCO

[[Page 250]]

technology are required to be standard features of TRS.
    (6) Voice mail and interactive menus. CAs must alert the TRS user to 
the presence of a recorded message and interactive menu through a hot 
key on the CA's terminal. The hot key will send text from the CA to the 
consumer's TTY indicating that a recording or interactive menu has been 
encountered. Relay providers shall electronically capture recorded 
messages and retain them for the length of the call. Relay providers may 
not impose any charges for additional calls which must be made by the 
relay user in order to complete calls involving recorded or interactive 
messages. Relay services shall be capable of handling pay-per-call 
calls.
    (c) Functional standards--(1) Consumer complaint logs.
    (i) States and interstate providers must maintain a log of consumer 
complaints including all complaints about TRS in the state, whether 
filed with the TRS provider or the State, and must retain the log until 
the next application for certification is granted. The log shall 
include, at a minimum, the date the complaint was filed, the nature of 
the complaint, the date of resolution, and an explanation of the 
resolution.
    (ii) Beginning July 1, 2002, states and TRS providers shall submit 
summaries of logs indicating the number of complaints received for the 
12-month period ending May 31 to the Commission by July 1 of each year. 
Summaries of logs submitted to the Commission on July 1, 2001 shall 
indicate the number of complaints received from the date of OMB approval 
through May 31, 2001.
    (2) Contact persons--(i) Beginning on June 30, 2000, states must 
submit to the Commission a contact person or office for TRS consumer 
information and complaints about intrastate TRS. This submission must 
include, at a minimum, the name and address of the state office that 
receives complaints, grievances, inquiries and suggestions, voice and 
TTY telephone numbers, fax number, e-mail address, and physical address 
to which correspondence should be sent.
    (ii) Beginning on June 30, 2000, providers of interstate TRS and 
relay providers having state TRS contracts must submit to the Commission 
a contact person or office for TRS consumer information and complaints 
about the provider's service. This submission must include, at a 
minimum, the name and address of the office that receives complaints, 
grievances, inquiries and suggestions, voice and TTY telephone numbers, 
fax number, e-mail address, and physical address to which correspondence 
should be sent.
    (3) Public access to information. Carriers, through publication in 
their directories, periodic billing inserts, placement of TRS 
instructions in telephone directories, through directory assistance 
services, and incorporation of TTY numbers in telephone directories, 
shall assure that callers in their service areas are aware of the 
availability and use of all forms of TRS. Efforts to educate the public 
about TRS should extend to all segments of the public, including 
individuals who are hard of hearing, speech disabled, and senior 
citizens as well as members of the general population. In addition, each 
common carrier providing telephone voice transmission services shall 
conduct, not later than October 1, 2001, ongoing education and outreach 
programs that publicize the availability of 711 access to TRS in a 
manner reasonably designed to reach the largest number of consumers 
possible.
    (4) Rates. TRS users shall pay rates no greater than the rates paid 
for functionally equivalent voice communication services with respect to 
such factors as the duration of the call, the time of day, and the 
distance from the point of origination to the point of termination.
    (5) Jurisdictional separation of costs--(i) General. Where 
appropriate, costs of providing TRS shall be separated in accordance 
with the jurisdictional separation procedures and standards set forth in 
the Commission's regulations adopted pursuant to section 410 of the 
Communications Act of 1934, as amended.
    (ii) Cost recovery. Costs caused by interstate TRS shall be 
recovered from all subscribers for every interstate service, utilizing a 
shared-funding cost recovery mechanism. Except as noted in this 
paragraph, with respect to VRS,

[[Page 251]]

costs caused by intrastate TRS shall be recovered from the intrastate 
jurisdiction. In a state that has a certified program under Sec. 64.605, 
the state agency providing TRS shall, through the state's regulatory 
agency, permit a common carrier to recover costs incurred in providing 
TRS by a method consistent with the requirements of this section. Costs 
caused by the provision of interstate and intrastate VRS shall be 
recovered from all subscribers for every interstate service, utilizing a 
shared-funding cost recovery mechanism.
    (iii) Telecommunications Relay Services Fund. Effective July 26, 
1993, an Interstate Cost Recovery Plan, hereinafter referred to as the 
TRS Fund, shall be administered by an entity selected by the Commission 
(administrator). The initial administrator, for an interim period, will 
be the National Exchange Carrier Association, Inc.
    (A) Contributions. Every carrier providing interstate 
telecommunications services shall contribute to the TRS Fund on the 
basis of interstate end-user telecommunications revenues as described 
herein. Contributions shall be made by all carriers who provide 
interstate services, including, but not limited to, cellular telephone 
and paging, mobile radio, operator services, personal communications 
service (PCS), access (including subscriber line charges), alternative 
access and special access, packet-switched, WATS, 800, 900, message 
telephone service (MTS), private line, telex, telegraph, video, 
satellite, intraLATA, international and resale services.
    (B) Contribution computations. Contributors' contribution to the TRS 
fund shall be the product of their subject revenues for the prior 
calendar year and a contribution factor determined annually by the 
Commission. The contribution factor shall be based on the ratio between 
expected TRS Fund expenses to interstate end-user telecommunications 
revenues. In the event that contributions exceed TRS payments and 
administrative costs, the contribution factor for the following year 
will be adjusted by an appropriate amount, taking into consideration 
projected cost and usage changes. In the event that contributions are 
inadequate, the fund administrator may request authority from the 
Commission to borrow funds commercially, with such debt secured by 
future years' contributions. Each subject carrier must contribute at 
least $25 per year. Carriers whose annual contributions total less than 
$1,200 must pay the entire contribution at the beginning of the 
contribution period. Service providers whose contributions total $1,200 
or more may divide their contributions into equal monthly payments. 
Carriers shall complete and submit, and contributions shall be based on, 
a ``Telecommunications Reporting Worksheet'' (as published by the 
Commission in the Federal Register). 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. 
Contributors' statements in the worksheet shall be subject to the 
provisions of section 220 of the Communications Act of 1934, as amended. 
The fund administrator may bill contributors a separate assessment for 
reasonable administrative expenses and interest resulting from improper 
filing or overdue contributions. The Chief of the Wireline Competition 
Bureau may waive, reduce, modify or eliminate contributor reporting 
requirements that prove unnecessary and require additional reporting 
requirements that the Bureau deems necessary to the sound and efficient 
administration of the TRS Fund.
    (C) Data collection from TRS Providers. TRS providers shall provide 
the administrator with true and adequate data necessary to determine TRS 
fund revenue requirements and payments. TRS providers shall provide the 
administrator with the following: total TRS minutes of use, total 
interstate TRS minutes of use, total TRS operating expenses and total 
TRS investment in general accordance with part 32 of the Communications 
Act, and other historical or projected information reasonably requested 
by the administrator for purposes of computing payments and revenue 
requirements. The administrator and the Commission shall have the 
authority to examine, verify and audit data received from TRS providers

[[Page 252]]

as necessary to assure the accuracy and integrity of fund payments.
    (D) The TRS Fund will be subject to a yearly audit performed by an 
independent certified accounting firm or the Commission, or both.
    (E) Payments to TRS Providers. TRS Fund payments shall be 
distributed to TRS providers based on formulas approved or modified by 
the Commission. The administrator shall file schedules of payment 
formulas with the Commission. Such formulas shall be designed to 
compensate TRS providers for reasonable costs of providing interstate 
TRS, and shall be subject to Commission approval. Such formulas shall be 
based on total monthly interstate TRS minutes of use. TRS minutes of use 
for purposes of interstate cost recovery under the TRS Fund are defined 
as the minutes of use for completed interstate TRS calls placed through 
the TRS center beginning after call set-up and concluding after the last 
message call unit. In addition to the data required under paragraph 
(c)(5)(iii)(C) of this section, all TRS providers, including providers 
who are not interexchange carriers, local exchange carriers, or 
certified state relay providers, must submit reports of interstate TRS 
minutes of use to the administrator in order to receive payments. The 
administrator shall establish procedures to verify payment claims, and 
may suspend or delay payments to a TRS provider if the TRS provider 
fails to provide adequate verification of payment upon reasonable 
request, or if directed by the Commission to do so. The TRS Fund 
administrator shall make payments only to eligible TRS providers 
operating pursuant to the mandatory minimum standards as required in 
Sec. 64.604, and after disbursements to the administrator for reasonable 
expenses incurred by it in connection with TRS Fund administration. TRS 
providers receiving payments shall file a form prescribed by the 
administrator. The administrator shall fashion a form that is consistent 
with parts 32 and 36 procedures reasonably tailored to meet the needs of 
TRS providers. The Commission shall have authority to audit providers 
and have access to all data, including carrier specific data, collected 
by the fund administrator. The fund administrator shall have authority 
to audit TRS providers reporting data to the administrator. The formulas 
should appropriately compensate interstate providers for the provision 
of VRS, whether intrastate or interstate.
    (F) TRS providers eligible for receiving payments from the TRS Fund 
are:
    (1) TRS facilities operated under contract with and/or by certified 
state TRS programs pursuant to Sec. 64.605; or
    (2) TRS facilities owned by or operated under contract with a common 
carrier providing interstate services operated pursuant to Sec. 64.604; 
or
    (3) Interstate common carriers offering TRS pursuant to Sec. 64.604.
    (G) Any eligible TRS provider as defined in paragraph (c)(5)(iii)(F) 
of this section shall notify the administrator of its intent to 
participate in the TRS Fund thirty (30) days prior to submitting reports 
of TRS interstate minutes of use in order to receive payment settlements 
for interstate TRS, and failure to file may exclude the TRS provider 
from eligibility for the year.
    (H) Administrator reporting, monitoring, and filing requirements. 
The administrator shall perform all filing and reporting functions 
required under paragraphs (c)(5)(iii)(A) through (J) of this section. 
TRS payment formulas and revenue requirements shall be filed with the 
Commission on May 1 of each year, to be effective for a one-year period 
beginning the following July 1. The administrator shall report annually 
to the Commission an itemization of monthly administrative costs which 
shall consist of all expenses, receipts, and payments associated with 
the administration of TRS Fund. The administrator is required to keep 
the TRS Fund separate from all other funds administered by the 
administrator, shall file a cost allocation manual (CAM), and shall 
provide the Commission full access to all data collected pursuant to the 
administration of the TRS Fund. The administrator shall establish a non-
paid, voluntary advisory committee of persons from the hearing and 
speech disability community, TRS users (voice and text telephone), 
interstate service providers, state representatives, and TRS providers, 
which will meet at reasonable intervals (at least semi-annually) in 
order to monitor

[[Page 253]]

TRS cost recovery matters. Each group shall select its own 
representative to the committee. The administrator's annual report shall 
include a discussion of advisory committee deliberations.
    (I) Information filed with the administrator. The administrator 
shall keep all data obtained from contributors and TRS providers 
confidential and shall not disclose such data in company-specific form 
unless directed to do so by the Commission. Subject to any restrictions 
imposed by the Chief of the Wireline Competition Bureau, the TRS Fund 
administrator may share data obtained from carriers with the 
administrators of the universal support mechanisms (See 47 CFR 54.701 of 
this chapter), the North American Numbering Plan administration cost 
recovery (See 47 CFR 52.16 of this chapter), and the long-term local 
number portability cost recovery (See 47 CFR 52.32 of this chapter). The 
TRS Fund administrator shall keep confidential all data obtained from 
other administrators. The administrator shall not use such data except 
for purposes of administering the TRS Fund, calculating the regulatory 
fees of interstate common carriers, and aggregating such fee payments 
for submission to the Commission. The Commission shall have access to 
all data reported to the administrator, and authority to audit TRS 
providers. 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.
    (J) The administrator's performance and this plan shall be reviewed 
by the Commission after two years.
    (K) All parties providing services or contributions or receiving 
payments under this section are subject to the enforcement provisions 
specified in the Communications Act, the Americans with Disabilities 
Act, and the Commission's rules.
    (6) Complaints--(i) Referral of complaint. If a complaint to the 
Commission alleges a violation of this subpart with respect to 
intrastate TRS within a state and certification of the program of such 
state under Sec. 64.605 is in effect, the Commission shall refer such 
complaint to such state expeditiously.
    (ii) Intrastate complaints shall be resolved by the state within 180 
days after the complaint is first filed with a state entity, regardless 
of whether it is filed with the state relay administrator, a state PUC, 
the relay provider, or with any other state entity.
    (iii) Jurisdiction of Commission. After referring a complaint to a 
state entity under paragraph (c)(6)(i) of this section, or if a 
complaint is filed directly with a state entity, the Commission shall 
exercise jurisdiction over such complaint only if:
    (A) Final action under such state program has not been taken within:
    (1) 180 days after the complaint is filed with such state entity; or
    (2) A shorter period as prescribed by the regulations of such state; 
or
    (B) The Commission determines that such state program is no longer 
qualified for certification under Sec. 64.605.
    (iv) The Commission shall resolve within 180 days after the 
complaint is filed with the Commission any interstate TRS complaint 
alleging a violation of section 225 of the Act or any complaint 
involving intrastate relay services in states without a certified 
program. The Commission shall resolve intrastate complaints over which 
it exercises jurisdiction under paragraph (c)(6)(iii) of this section 
within 180 days.
    (v) Complaint Procedures. Complaints against TRS providers for 
alleged violations of this subpart may be either informal or formal.
    (A) Informal Complaints.
    (1) Form. An informal complaint may be transmitted to the Consumer 
Information Bureau by any reasonable means, such as letter, facsimile 
transmission, telephone (voice/TRS/TTY), Internet e-mail, or some other 
method that would best accommodate a complainant's hearing or speech 
disability.
    (2) Content. An informal complaint shall include the name and 
address of the complainant; the name and address of the TRS provider 
against whom the complaint is made; a statement of facts

[[Page 254]]

supporting the complainant's allegation that the TRS provided it has 
violated or is violating section 225 of the Act and/or requirements 
under the Commission's rules; the specific relief or satisfaction sought 
by the complainant; and the complainant's preferred format or method of 
response to the complaint by the Commission and the defendant TRS 
provider (such as letter, facsimile transmission, telephone (voice/TRS/
TTY), Internet e-mail, or some other method that would best accommodate 
the complainant's hearing or speech disability).
    (3) Service; designation of agents. The Commission shall promptly 
forward any complaint meeting the requirements of this subsection to the 
TRS provider named in the complaint. Such TRS provider shall be called 
upon to satisfy or answer the complaint within the time specified by the 
Commission. Every TRS provider shall file with the Commission a 
statement designating an agent or agents whose principal responsibility 
will be to receive all complaints, inquiries, orders, decisions, and 
notices and other pronouncements forwarded by the Commission. Such 
designation shall include a name or department designation, business 
address, telephone number (voice and TTY), facsimile number and, if 
available, internet e-mail address.
    (B) Review and disposition of informal complaints. (1) Where it 
appears from the TRS provider's answer, or from other communications 
with the parties, that an informal complaint has been satisfied, the 
Commission may, in its discretion, consider the matter closed without 
response to the complainant or defendant. In all other cases, the 
Commission shall inform the parties of its review and disposition of a 
complaint filed under this subpart. Where practicable, this information 
shall be transmitted to the complainant and defendant in the manner 
requested by the complainant (e.g., letter, facsmile transmission, 
telephone (voice/TRS/TTY) or Internet e-mail.
    (2) A complainant unsatisfied with the defendant's response to the 
informal complaint and the staff's decision to terminate action on the 
informal complaint may file a formal complaint with the Commission 
pursuant to paragraph (c)(6)(v)(C) of this section.
    (C) Formal complaints. A formal complaint shall be in writing, 
addressed to the Federal Communications Commission, Enforcement Bureau, 
Telecommunications Consumer Division, Washington, DC 20554 and shall 
contain:
    (1) The name and address of the complainant,
    (2) The name and address of the defendant against whom the complaint 
is made,
    (3) A complete statement of the facts, including supporting data, 
where available, showing that such defendant did or omitted to do 
anything in contravention of this subpart, and
    (4) The relief sought.
    (D) Amended complaints. An amended complaint setting forth 
transactions, occurrences or events which have happened since the filing 
of the original complaint and which relate to the original cause of 
action may be filed with the Commission.
    (E) Number of copies. An original and two copies of all pleadings 
shall be filed.
    (F) Service. (1) Except where a complaint is referred to a state 
pursuant to Sec. 64.604(c)(6)(i), or where a complaint is filed directly 
with a state entity, the Commission will serve on the named party a copy 
of any complaint or amended complaint filed with it, together with a 
notice of the filing of the complaint. Such notice shall call upon the 
defendant to satisfy or answer the complaint in writing within the time 
specified in said notice of complaint.
    (2) All subsequent pleadings and briefs shall be served by the 
filing party on all other parties to the proceeding in accordance with 
the requirements of Sec. 1.47 of this chapter. Proof of such service 
shall also be made in accordance with the requirements of said section.
    (G) Answers to complaints and amended complaints. Any party upon 
whom a copy of a complaint or amended complaint is served under this 
subpart shall serve an answer within the time specified by the 
Commission in its notice of complaint. The answer shall advise the 
parties and the Commission fully and completely of the nature of

[[Page 255]]

the defense and shall respond specifically to all material allegations 
of the complaint. In cases involving allegations of harm, the answer 
shall indicate what action has been taken or is proposed to be taken to 
stop the occurrence of such harm. Collateral or immaterial issues shall 
be avoided in answers and every effort should be made to narrow the 
issues. Matters alleged as affirmative defenses shall be separately 
stated and numbered. Any defendant failing to file and serve an answer 
within the time and in the manner prescribed may be deemed in default.
    (H) Replies to answers or amended answers. Within 10 days after 
service of an answer or an amended answer, a complainant may file and 
serve a reply which shall be responsive to matters contained in such 
answer or amended answer and shall not contain new matter. Failure to 
reply will not be deemed an admission of any allegation contained in 
such answer or amended answer.
    (I) Defective pleadings. Any pleading filed in a complaint 
proceeding that is not in substantial conformity with the requirements 
of the applicable rules in this subpart may be dismissed.
    (7) Treatment of TRS customer information. Beginning on July 21, 
2000, all future contracts between the TRS administrator and the TRS 
vendor shall provide for the transfer of TRS customer profile data from 
the outgoing TRS vendor to the incoming TRS vendor. Such data must be 
disclosed in usable form at least 60 days prior to the provider's last 
day of service provision. Such data may not be used for any purpose 
other than to connect the TRS user with the called parties desired by 
that TRS user. Such information shall not be sold, distributed, shared 
or revealed in any other way by the relay center or its employees, 
unless compelled to do so by lawful order.

[65 FR 38436, June 21, 2000, as amended at 65 FR 54804, Sept. 11, 2000; 
67 FR 13229, Mar. 21, 2002]

    Effective Date Note: At 65 FR 38436, June 21, 2000, Sec. 64.604 was 
revised, effective June 30, 2000. Paragraphs 64.604(b)(2), (c)(1) and 
(c)(5)(i) contain information collection and recordkeeping requirements 
and will not become effective until approval has been given by the 
Office of Management and Budget.



Sec. 64.605  State certification.

    (a) State documentation. Any state, through its office of the 
governor or other delegated executive office empowered to provide TRS, 
desiring to establish a state program under this section shall submit, 
not later than October 1, 1992, documentation to the Commission 
addressed to the Federal Communications Commission, Chief, Wireline 
Competition Bureau, TRS Certification Program, Washington, DC 20554, and 
captioned ``TRS State Certification Application.'' All documentation 
shall be submitted in narrative form, shall clearly describe the state 
program for implementing intrastate TRS, and the procedures and remedies 
for enforcing any requirements imposed by the state program. The 
Commission shall give public notice of states filing for certification 
including notification in the Federal Register.
    (b) Requirements for certification. After review of state 
documentation, the Commission shall certify, by letter, or order, the 
state program if the Commission determines that the state certification 
documentation:
    (1) Establishes that the state program meets or exceeds all 
operational, technical, and functional minimum standards contained in 
Sec. 64.604;
    (2) Establishes that the state program makes available adequate 
procedures and remedies for enforcing the requirements of the state 
program, including that it makes available to TRS users informational 
materials on state and Commission complaint procedures sufficient for 
users to know the proper procedures for filing complaints; and
    (3) Where a state program exceeds the mandatory minimum standards 
contained in Sec. 64.604, the state establishes that its program in no 
way conflicts with federal law.
    (c) Certification period. State certification shall remain in effect 
for five years. One year prior to expiration of certification, a state 
may apply for renewal of its certification by filing documentation as 
prescribed by paragraphs (a) and (b) of this section.

[[Page 256]]

    (d) Method of funding. Except as provided in Sec. 64.604, the 
Commission shall not refuse to certify a state program based solely on 
the method such state will implement for funding intrastate TRS, but 
funding mechanisms, if labeled, shall be labeled in a manner that 
promote national understanding of TRS and do not offend the public.
    (e) Suspension or revocation of certification. The Commission may 
suspend or revoke such certification if, after notice and opportunity 
for hearing, the Commission determines that such certification is no 
longer warranted. In a state whose program has been suspended or 
revoked, the Commission shall take such steps as may be necessary, 
consistent with this subpart, to ensure continuity of TRS. The 
Commission may, on its own motion, require a certified state program to 
submit documentation demonstrating ongoing compliance with the 
Commission's minimum standards if, for example, the Commission receives 
evidence that a state program may not be in compliance with the minimum 
standards.
    (f) Notification of substantive change. States must notify the 
Commission of substantive changes in their TRS programs within 60 days 
of when they occur, and must certify that the state TRS program 
continues to meet federal minimum standards after implementing the 
substantive change.

[65 FR 38440, June 21, 2000, as amended at 67 FR 13229, Mar. 21, 2002]

    Effective Date Note: At 65 FR 38440, June 21, 2000, Sec. 64.605 was 
revised, effective Dec. 18, 2000, except for paragraph (f) which 
contains information collection and recordkeeping requirements and will 
not become effective until approval has been given by the Office of 
Management and Budget.



Sec. 64.606  Furnishing related customer premises equipment.

    (a) Any communications common carrier may provide, under tariff, 
customer premises equipment (other than hearing aid compatible 
telephones as defined in part 68 of this chapter, needed by persons with 
hearing, speech, vision or mobility disabilities. Such equipment may be 
provided to persons with those disabilities or to associations or 
institutions who require such equipment regularly to communicate with 
persons with disabilities. Examples of such equipment include, but are 
not limited to, artificial larynxes, bone conductor receivers and TTs.
    (b) Any carrier which provides telecommunications devices for 
persons with hearing and/or speech disabilities, whether or not pursuant 
to tariff, shall respond to any inquiry concerning:
    (1) The availability (including general price levels) of TTs using 
ASCII, Baudot, or both formats; and
    (2) The compatibility of any TT with other such devices and 
computers.



Sec. 64.607  Provision of hearing aid compatible telephones by exchange carriers.

    In the absence of alternative suppliers in an exchange area, an 
exchange carrier must provide a hearing aid compatible telephone, as 
defined in Sec. 68.316 of this chapter, and provide related installation 
and maintenance services for such telephones on a detariffed basis to 
any customer with a hearing disability who requests such equipment or 
services.

[61 FR 42185, Aug. 14, 1996]



Sec. 64.608  Enforcement of related customer premises equipment rules.

    Enforcement of Secs. 64.606 and 64.607 is delegated to those state 
public utility or public service commissions which adopt those sections 
and provide for their enforcement. Subpart G--Furnishing of Enhanced 
Services and Customer-Premises Equipment by Communications Common 
Carriers



    Subpart G--Furnishing of Enhanced Services and Customer-Premises 
   Equipment by Bell Operating Companies; Telephone Operator Services



Sec. 64.702  Furnishing of enhanced services and customer-premises equipment.

    (a) For the purpose of this subpart, the term enhanced service shall 
refer to services, offered over common carrier transmission facilities 
used in interstate communications, which employ computer processing 
applications that

[[Page 257]]

act on the format, content, code, protocol or similar aspects of the 
subscriber's transmitted information; provide the subscriber additional, 
different, or restructured information; or involve subscriber 
interaction with stored information. Enhanced services are not regulated 
under title II of the Act.
    (b) Bell Operating Companies common carriers subject, in whole or in 
part, to the Communications Act may directly provide enhanced services 
and customer-premises equipment; provided, however, that the Commission 
may prohibit any such common carrier from engaging directly or 
indirectly in furnishing enhanced services or customer-premises 
equipment to others except as provided for in paragraph (c) of this 
section, or as otherwise authorized by the Commission.
    (c) A Bell Operating Company common carrier prohibited by the 
Commission pursuant to paragraph (b) of this section from engaging in 
the furnishing of enhanced services or customer-premises equipment may, 
subject to other provisions of law, have a controlling or lesser 
interest in, or be under common control with, a separate corporate 
entity that furnishes enhanced services or customer-premises equipment 
to others provided the following conditions are met:
    (1) Each such separate corporation shall obtain all transmission 
facilities necessary for the provision of enhanced services pursuant to 
tariff, and may not own any network or local distribution transmission 
facilities or equipment.
    (2) Each such separate corporation shall operate independently in 
the furnishing of enhanced services and customer-premises equipment. It 
shall maintain its own books of account, have separate officers, utilize 
separate operating, marketing, installation, and maintenance personnel, 
and utilize separate computer facilities in the provision of enhanced 
services.
    (3) Each such separate corporation which provides customer-premises 
equipment or enhanced services shall deal with any affiliated 
manufacturing entity only on an arm's length basis.
    (4) Any research or development performed on a joint or separate 
basis for the subsidiary must be done on a compensatory basis. Except 
for generic software within equipment, manufactured by an affiliate, 
that is sold ``off the shelf'' to any interested purchaser, the separate 
corporation must develop its own software, or contract with non-
affiliated vendors.
    (5) All transactions between the separate corporation and the 
carrier or its affiliates which involve the transfer, either direct or 
by accounting or other record entries, of money, personnel, resources, 
other assets or anything of value, shall be reduced to writing. A copy 
of any contract, agreement, or other arrangement entered into between 
such entities shall be filed with the Commission within 30 days after 
the contract, agreement, or other arrangement is made. This provision 
shall not apply to any transaction governed by the provision of an 
effective state or federal tariff.
    (d) A carrier subject to the proscription set forth in paragraph (c) 
of this section:
    (1) Shall not engage in the sale or promotion of enhanced services 
or customer-premises equipment, on behalf of the separate corporation, 
or sell, lease or otherwise make available to the separate corporation 
any capacity or computer system component on its computer system or 
systems which are used in any way for the provision of its common 
carrier communications services. (This does not apply to communications 
services offered the separate subsidiary pursuant to tariff);
    (2) Shall disclose to the public all information relating to network 
design and technical standards and information affecting changes to the 
telecommunications network which would affect either intercarrier 
interconnection or the manner in which customer-premises equipment is 
attached to the interstate network prior to implementation and with 
reasonable advance notification. Such information shall be disclosed in 
compliance with the procedures set forth in 47 CFR 51.325 through 
51.335.
    (3) [Reserved]
    (4) Must obtain Commission approval as to the manner in which the 
separate corporation is to be capitalized, prior

[[Page 258]]

to obtaining any interest in the separate corporation or transferring 
any assets, and must obtain Commission approval of any modification to a 
Commission approved capitalization plan.
    (e) Except as otherwise ordered by the Commission, the carrier 
provision of customer premises equipment used in conjunction with the 
interstate telecommunications network may be offered in combination with 
the provision of common carrier communications services, except that the 
customer premises equipment shall not be offered on a tariffed basis.

[45 FR 31364, May 13, 1980, as amended at 46 FR 6008, Jan. 21, 1981; 63 
FR 20338, Apr. 24, 1998; 64 FR 14148, Mar. 24, 1999; 66 FR 19402, Apr. 
16, 2001]

    Effective Date Note: At 64 FR 14148, Mar. 24, 1999, Sec. 64.702(b), 
(c) and (d)(2) were amended. 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. 64.703  Consumer information.

    (a) Each provider of operator services shall:
    (1) Identify itself, audibly and distinctly, to the consumer at the 
beginning of each telephone call and before the consumer incurs any 
charge for the call;
    (2) Permit the consumer to terminate the telephone call at no charge 
before the call is connected;
    (3) Disclose immediately to the consumer, upon request and at no 
charge to the consumer--
    (i) A quotation of its rates or charges for the call;
    (ii) The methods by which such rates or charges will be collected; 
and
    (iii) The methods by which complaints concerning such rates, 
charges, or collection practices will be resolved; and
    (4) Disclose, audibly and distinctly to the consumer, at no charge 
and before connecting any interstate non-access code operator service 
call, how to obtain the total cost of the call, including any aggregator 
surcharge, or the maximum possible total cost of the call, including any 
aggregator surcharge, before providing further oral advice to the 
consumer on how to proceed to make the call. The oral disclosure 
required in this subsection shall instruct consumers that they may 
obtain applicable rate and surcharge quotations either, at the option of 
the provider of operator services, by dialing no more than two digits or 
by remaining on the line. The phrase ``total cost of the call'' as used 
in this paragraph means both the variable (duration-based) charges for 
the call and the total per-call charges, exclusive of taxes, that the 
carrier, or its billing agent, may collect from the consumer for the 
call. It does not include additional charges that may be assessed and 
collected without the involvement of the carrier, such as a hotel 
surcharge billed by a hotel. Such charges are addressed in paragraph (b) 
of this section.
    (b) Each aggregator shall post on or near the telephone instrument, 
in plain view of consumers:
    (1) The name, address, and toll-free telephone number of the 
provider of operator services;
    (2) Except for CMRS aggregators, a written disclosure that the rates 
for all operator-assisted calls are available on request, and that 
consumers have a right to obtain access to the interstate common carrier 
of their choice and may contact their preferred interstate common 
carriers for information on accessing that carrier's service using that 
telephone;
    (3) In the case of a pay telephone, the local coin rate for the pay 
telephone location; and
    (4) The name and address of the Consumer Information Bureau of the 
Commission (Federal Communications Commission, Consumer Information 
Bureau, Consumer Complaints-- Telephone, Washington, D.C. 20554), to 
which the consumer may direct complaints regarding operator services. An 
existing posting that displays the address that was required prior to 
the amendment of this rules (i.e., the address of the Common Carrier 
Bureau's Enforcement Division, which no longer exists) may remain until 
such time as the posting is replaced for any other purpose. Any posting 
made after the effective date of this amendment must display the updated 
address (i.e., the

[[Page 259]]

address of the Consumer Information Bureau).
    (c) Updating of postings. The posting required by this section shall 
be updated as soon as practicable following any change of the carrier 
presubscribed to provide interstate service at an aggregator location, 
but no later than 30 days following such change. This requirement may be 
satisfied by applying to a payphone a temporary sticker displaying the 
required posting information, provided that any such temporary sticker 
shall be replaced with permanent signage during the next regularly 
scheduled maintenance visit.
    (d) Effect of state law or regulation. The requirements of paragraph 
(b) of this section shall not apply to an aggregator in any case in 
which State law or State regulation requires the aggregator to take 
actions that are substantially the same as those required in paragraph 
(b) of this section.
    (e) Each provider of operator services shall ensure, by contract or 
tariff, that each aggregator for which such provider is the 
presubscribed provider of operator services is in compliance with the 
requirements of paragraph (b) of this section.

[56 FR 18523, Apr. 23, 1991, as amended at 61 FR 14981, Apr. 4, 1996; 61 
FR 52323, Oct. 7, 1996; 63 FR 11617, Mar. 10, 1998; 63 FR 43041, Aug. 
11, 1998; 64 FR 47119, Aug. 30, 1999; 67 FR 2819, Jan. 22, 2002]



Sec. 64.704  Call blocking prohibited.

    (a) Each aggregator shall ensure that each of its telephones 
presubscribed to a provider of operator services allows the consumer to 
use ``800'' and ``950'' access code numbers to obtain access to the 
provider of operator services desired by the consumer.
    (b) Each provider of operator services shall:
    (1) Ensure, by contract or tariff, that each aggregator for which 
such provider is the presubscribed provider of operator services is in 
compliance with the requirements of paragraphs (a) and (c) of this 
section; and
    (2) Withhold payment (on a location-by-location basis) of any 
compensation, including commissions, to aggregators if such provider 
reasonably believes that the aggregator is blocking access to interstate 
common carriers in violation of paragraphs (a) or (c) of this section.
    (c) Each aggregator shall, by the earliest applicable date set forth 
in this paragraph, ensure that any of its equipment presubscribed to a 
provider of operator services allows the consumer to use equal access 
codes to obtain access to the consumer's desired provider of operator 
services.
    (1) Each pay telephone shall, within six (6) months of the effective 
date of this paragraph, allow the consumer to use equal access codes to 
obtain access to the consumer's desired provider of operator services.
    (2) All equipment that is technologically capable of identifying the 
dialing of an equal access code followed by any sequence of numbers that 
will result in billing to the originating telephone and that is 
technologically capable of blocking access through such dialing 
sequences without blocking access through other dialing sequences 
involving equal access codes, shall, within six (6) months of the 
effective date of this paragraph or upon installation, whichever is 
sooner, allow the consumer to use equal access codes to obtain access to 
the consumer's desired provider of operator services.
    (3) All equipment or software that is manufactured or imported on or 
after April 17, 1992, and installed by any aggregator shall, immediately 
upon installation by the aggregator, allow the consumer to use equal 
access codes to obtain access to the consumer's desired provider of 
operator services.
    (4) All equipment that can be modified at a cost of no more than 
$15.00 per line to be technologically capable of identifying the dialing 
of an equal access code followed by any sequence of numbers that will 
result in billing to the originating telephone and to be technologically 
capable of blocking access through such dialing sequences without 
blocking access through other dialing sequences involving equal access 
codes, shall, within eighteen (18) months of the effective date of this 
paragraph, allow the consumer to use equal access codes to obtain access 
to the consumer's desired provider of operator services.
    (5) All equipment not included in paragraphs (c)(1), (c)(2), (c)(3), 
or (c)(4)

[[Page 260]]

of this section shall, no later than April 17, 1997, allow the consumer 
to use equal access codes to obtain access to the consumer's desired 
provider of operator services.
    (6) This paragraph does not apply to the use by consumers of equal 
access code dialing sequences that result in billing to the originating 
telephone.
    (d) All providers of operator services, except those employing a 
store-and-forward device that serves only consumers at the location of 
the device, shall establish an ``800'' or ``950'' access code number 
within six (6) months of the effective date of this paragraph.
    (e) The requirements of this section shall not apply to CMRS 
aggregators and providers of CMRS operator services.

[56 FR 18523, Apr. 23, 1991, as amended at 56 FR 40799, Aug. 16, 1991; 
57 FR 34260, Aug. 4, 1992; 63 FR 43041, Aug. 11, 1998]



Sec. 64.705  Restrictions on charges related to the provision of operator services.

    (a) A provider of operator services shall:
    (1) Not bill for unanswered telephone calls in areas where equal 
access is available;
    (2) Not knowingly bill for unanswered telephone calls where equal 
access is not available;
    (3) Not engage in call splashing, unless the consumer requests to be 
transferred to another provider of operator services, the consumer is 
informed prior to incurring any charges that the rates for the call may 
not reflect the rates from the actual originating location of the call, 
and the consumer then consents to be transferred;
    (4) Except as provided in paragraph (a)(3) of this section, not bill 
for a call that does not reflect the location of the origination of the 
call; and
    (5) Ensure, by contract or tariff, that each aggregator for which 
such provider is the presubscribed provider of operator services is in 
compliance with the requirements of paragraph (b) of this section.
    (b) An aggregator shall ensure that no charge by the aggregator to 
the consumer for using an ``800'' or ``950'' access code number, or any 
other access code number, is greater than the amount the aggregator 
charges for calls placed using the presubscribed provider of operator 
services.
    (c) The requirements of paragraphs (a)(5) and (b) of this section 
shall not apply to CMRS aggregators and providers of CMRS operator 
services.

[56 FR 18523, Apr. 23, 1991, as amended at 63 FR 43041, Aug. 11, 1998]



Sec. 64.706  Minimum standards for the routing and handling of emergency telephone calls.

    Upon receipt of any emergency telephone call, providers of operator 
services and aggregators shall ensure immediate connection of the call 
to the appropriate emergency service of the reported location of the 
emergency, if known, and, if not known, of the originating location of 
the call.

[61 FR 14981, Apr. 4, 1996]



Sec. 64.707  Public dissemination of information by providers of operator services.

    Providers of operator services shall regularly publish and make 
available at no cost to inquiring consumers written materials that 
describe any recent changes in operator services and in the choices 
available to consumers in that market.

[56 FR 18524, Apr. 23, 1991]



Sec. 64.708  Definitions.

    As used in Secs. 64.703 through 64.707 of this part and Sec. 68.318 
of this chapter (47 CFR 64.703-64.707, 68.318):
    (a) Access code means a sequence of numbers that, when dialed, 
connect the caller to the provider of operator services associated with 
that sequence;
    (b) Aggregator means any person that, in the ordinary course of its 
operations, makes telephones available to the public or to transient 
users of its premises, for interstate telephone calls using a provider 
of operator services;
    (c) Call splashing means the transfer of a telephone call from one 
provider of operator services to another such provider in such a manner 
that the subsequent provider is unable or unwilling to determine the 
location of the origination of the call and, because of such inability 
or unwillingness, is prevented

[[Page 261]]

from billing the call on the basis of such location;
    (d) CMRS aggregator means an aggregator that, in the ordinary course 
of its operations, makes telephones available to the public or to 
transient users of its premises for interstate telephone calls using a 
provider of CMRS operator services;
    (e) CMRS operator services means operator services provided by means 
of a commercial mobile radio service as defined in section 20.3 of this 
chapter.
    (f) Consumer means a person initiating any interstate telephone call 
using operator services. In collect calling arrangements handled by a 
provider of operator services, the term consumer also includes the party 
on the terminating end of the call. For bill-to-third-party calling 
arrangements handled by a provider of operator services, the term 
consumer also includes the party to be billed for the call if the latter 
is contacted by the operator service provider to secure billing 
approval.
    (g) Equal access has the meaning given that term in Appendix B of 
the Modification of Final Judgment entered by the United States District 
Court on August 24, 1982, in United States v. Western Electric, Civil 
Action No. 82-0192 (D.D.C. 1982), as amended by the Court in its orders 
issued prior to October 17, 1990;
    (h) Equal access code means an access code that allows the public to 
obtain an equal access connection to the carrier associated with that 
code;
    (i) Operator services means any interstate telecommunications 
service initiated from an aggregator location that includes, as a 
component, any automatic or live assistance to a consumer to arrange for 
billing or completion, or both, of an interstate telephone call through 
a method other than:
    (1) Automatic completion with billing to the telephone from which 
the call originated; or
    (2) Completion through an access code used by the consumer, with 
billing to an account previously established with the carrier by the 
consumer;
    (j) Presubscribed provider of operator services means the interstate 
provider of operator services to which the consumer is connected when 
the consumer places a call using a provider of operator services without 
dialing an access code;
    (k) Provider of CMRS operator services means a provider of operator 
services that provides CMRS operator services;
    (l) Provider of operator services means any common carrier that 
provides operator services or any other person determined by the 
Commission to be providing operator services.

[56 FR 18524, Apr. 23, 1991; 56 FR 25721, June 5, 1991, as amended at 61 
FR 14981, Apr. 4, 1996; 63 FR 43041, Aug. 11, 1998; 67 FR 2820, Jan. 22, 
2002]



Sec. 64.709  Informational tariffs.

    (a) Informational tariffs filed pursuant to 47 U.S.C. 226(h)(1)(A) 
shall contain specific rates expressed in dollars and cents for each 
interstate operator service of the carrier and shall also contain 
applicable per call aggregator surcharges or other per-call fees, if 
any, collected from consumers by, or on behalf of, the carrier.
    (b) Per call fees, if any, billed on behalf of aggregators or 
others, shall be specified in informational tariffs in dollars and 
cents.
    (c) In order to remove all doubt as to their proper application, all 
informational tariffs must contain clear and explicit explanatory 
statements regarding the rates, i.e., the tariffed price per unit of 
service, and the regulations governing the offering of service in that 
tariff.
    (d) Informational tariffs shall be accompanied by a cover letter, 
addressed to the Secretary of the Commission, explaining the purpose of 
the filing.
    (1) The original of the cover letter shall be submitted to the 
Secretary without attachments, along with FCC Form 159, and the 
appropriate fee to the Mellon Bank, Pittsburgh, Pennsylvania.
    (2) Copies of the cover letter and the attachments shall be 
submitted to the Secretary's Office, the Commission's contractor for 
public records duplication, and the Chief, Tariff and Price Analysis 
Branch, Competitive Pricing Division.
    (e) Any changes to the tariff shall be submitted under a new cover 
letter with a complete copy of the tariff, including changes.

[[Page 262]]

    (1) Changes to a tariff shall be explained in the cover letter but 
need not be symbolized on the tariff pages.
    (2) Revised tariffs shall be filled pursuant to the procedures 
specified in this section.

[63 FR 11617, Mar. 10, 1998; 63 FR 15316, Mar. 31, 1998, as amended at 
67 FR 2820, Jan. 22, 2002]



Sec. 64.710  Operator services for prison inmate phones.

    (a) Each provider of inmate operator services shall:
    (1) Identify itself and disclose, audibly and distinctly to the 
consumer, at no charge and before connecting any interstate, non-access 
code operator service call, how to obtain the total cost of the call, 
including any surcharge or premises-imposed-fee. The oral disclosure 
required in this paragraph shall instruct consumers that they may obtain 
applicable rate and surcharge quotations either, at the option of the 
provider of inmate operator services, by dialing no more than two digits 
or by remaining on the line. The phrase ``total cost of the call,'' as 
used in this paragraph, means both the variable (duration-based) charges 
for the call and the total per-call charges, exclusive of taxes, that 
the carrier, or its billing agent, may collect from the consumer for the 
call. Such phrase shall include any per-call surcharge imposed by the 
correctional institution, unless it is subject to regulation itself as a 
common carrier for imposing such surcharges, if the contract between the 
carrier and the correctional institution prohibits both resale and the 
use of pre-paid calling card arrangements.
    (2) Permit the consumer to terminate the telephone call at no charge 
before the call is connected; and
    (3) Disclose immediately to the consumer, upon request and at no 
charge to the consumer--
    (i) The methods by which its rates or charges for the call will be 
collected; and
    (ii) The methods by which complaints concerning such rates, charges 
or collection practices will be resolved.
    (b) As used in this subpart:
    (1) Consumer means the party to be billed for any interstate call 
from an inmate telephone;
    (2) Inmate telephone means a telephone instrument set aside by 
authorities of a prison or other correctional institution for use by 
inmates.
    (3) Inmate operator services means any interstate telecommunications 
service initiated from an inmate telephone that includes, as a 
component, any automatic or live assistance to a consumer to arrange for 
billing or completion, or both, of an interstate telephone call through 
a method other than:
    (i) Automatic completion with billing to the telephone from which 
the call originated; or
    (ii) Completion through an access code used by the consumer, with 
billing to an account previously established with the carrier by the 
consumer;
    (4) Provider of inmate operator services means any common carrier 
that provides outbound interstate operator services from inmate 
telephones.

[63 FR 11617, Mar. 10, 1998, as amended at 67 FR 2820, Jan. 22, 2002]



  Subpart H--Extension of Unsecured Credit for Interstate and Foreign 
        Communications Services to Candidates for Federal Office

    Authority: Secs. 4, 201, 202, 203, 218, 219, 48 Stat. 1066, 1070, 
1077; 47 U.S.C. 154, 201, 202, 203, 218, 219; sec. 401, 86 Stat. 19; 2 
U.S.C. 451.

    Source: 37 FR 9393, May 10, 1972, unless otherwise noted.



Sec. 64.801  Purpose.

    Pursuant to section 401 of the Federal Election Campaign Act of 
1971, Public Law 92-225, these rules prescribe the general terms and 
conditions for the extension of unsecured credit by a communication 
common carrier to a candidate or person on behalf of such candidate for 
Federal office.



Sec. 64.802  Applicability.

    These rules shall apply to each communication common carrier subject 
to the whole or part of the Communications Act of 1934, as amended.

[[Page 263]]



Sec. 64.803  Definitions.

    For the purposes of this subpart:
    (a) Candidate means an individual who seeks nomination for election, 
or election, to Federal office, whether or not such individual is 
elected, and an individual shall be deemed to seek nomination for 
election, or election, if he has (1) taken the action necessary under 
the law of a State to qualify himself for nomination for election, or 
election, to Federal office, or (2) received contributions or made 
expenditures, or has given his consent for any other person to receive 
contributions or make expenditures, with a view to bringing about his 
nomination for election, or election, to such office.
    (b) Election means (1) a general, special, primary, or runoff 
election, (2) a convention or caucus of a political party held to 
nominate a candidate, (3) a primary election held for the selection of 
delegates to a national nominating convention of a political party, and 
(4) a primary election held for the expression of a preference for the 
nomination of persons for election to the office of President.
    (c) Federal office means the office of President or Vice President 
of the United States: or of Senator or Representative in, or Delegate or 
Resident Commissioner to, the Congress of the United States.
    (d) Person means an individual, partnership, committee, association, 
corporation, labor organization, and any other organization or group of 
persons.
    (e) Unsecured credit means the furnishing of service without 
maintaining on a continuing basis advance payment, deposit, or other 
security, that is designed to assure payment of the estimated amount of 
service for each future 2 months period, with revised estimates to be 
made on at least a monthly basis.



Sec. 64.804  Rules governing the extension of unsecured credit to candidates or persons on behalf of such candidates for Federal office for interstate and 
          foreign common carrier communication services.

    (a) There is no obligation upon a carrier to extend unsecured credit 
for interstate and foreign communication services to a candidate or 
person on behalf of such candidate for Federal office. However, if the 
carrier chooses to extend such unsecured credit, it shall comply with 
the requirements set forth in paragraphs (b) through (g) of this 
section.
    (b) If a carrier decides to extend unsecured credit to any candidate 
for Federal office or any person on behalf of such candidate, then 
unsecured credit shall be extended on substantially equal terms and 
conditions to all candidates and all persons on behalf of all candidates 
for the same office, with due regard for differences in the estimated 
quantity of service to be furnished each such candidate or person.
    (c) Before extending unsecured credit, a carrier shall obtain a 
signed written application for service which shall identify the 
applicant and the candidate and state whether or not the candidate 
assumes responsibility for the charges, and which shall also expressly 
state as follows:
    (1) That service is being requested by the applicant or applicants 
and that the person or persons making the application will be 
individually, jointly and severally liable for the payment of all 
charges; and
    (2) That the applicant(s) understands that the carrier will (under 
the provisions of paragraph (d) of this section) discontinue service 
upon written notice if any amount due is not paid upon demand.
    (d) If charges for services rendered are not paid to the carrier 
within 15 days from rendition of a bill therefor, the carrier shall 
forthwith at the end of the 15-day period serve written notice on the 
applicant of intent to discontinue service within 7 days of date of such 
notice for nonpayment and shall discontinue service at the end of the 7-
day period unless all such sums due are paid in full within such 7-day 
period.
    (e) Each carrier shall take appropriate action at law to collect any 
unpaid balance on an account for interstate and foreign communication 
services rendered to a candidate or person on behalf of such candidate 
prior to the expiration of the statute of limitations under section 
415(a) of the Communications Act of 1934, as amended.

[[Page 264]]

    (f) The records of each account, involving the extension by a 
carrier of unsecured credit to a candidate or person on behalf of such 
candidate for common carrier communications services shall be maintained 
by the carrier so as to show separately, for interstate and foreign 
communication services all charges, credits, adjustments, and security, 
if any, and balance receivable.
    (g) On or before January 31, 1973, and on corresponding dates of 
each year thereafter, each carrier which had operating revenues in the 
preceding year in excess of $1 million shall file with the Commission a 
report by account of any amount due and unpaid, as of the end of the 
month prior to the reporting date, for interstate and foreign 
communications services to a candidate or person on behalf of such 
candidate when such amount results from the extension of unsecured 
credit. Each report shall include the following information:
    (1) Name of candidate.
    (2) Name and address of person or persons applying for service.
    (3) Balance due carrier.
    (4) Reason for nonpayment.
    (5) Payment arrangements, if any.
    (6) Date service discontinued.
    (7) Date, nature and status of any action taken at law in compliance 
with paragraph (e) of this section.

[37 FR 9393, May 10, 1972, as amended at 62 FR 5166, Feb. 4, 1997]



                     Subpart I--Allocation of Costs



Sec. 64.901  Allocation of costs.

    (a) Carriers required to separate their regulated costs from 
nonregulated costs shall use the attributable cost method of cost 
allocation for such purpose.
    (b) In assigning or allocating costs to regulated and nonregulated 
activities, carriers shall follow the principles described herein.
    (1) Tariffed services provided to a nonregulated activity will be 
charged to the nonregulated activity at the tariffed rates and credited 
to the regulated revenue account for that service. Nontariffed services, 
offered pursuant to a section 252(e) agreement, provided to a 
nonregulated activity will be charged to the nonregulated activity at 
the amount set forth in the applicable interconnection agreement 
approved by a state commission pursuant to section 252(e) and credited 
to the regulated revenue account for that service.
    (2) Costs shall be directly assigned to either regulated or 
nonregulated activities whenever possible.
    (3) Costs which cannot be directly assigned to either regulated or 
nonregulated activities will be described as common costs. Common costs 
shall be grouped into homogeneous cost categories designed to facilitate 
the proper allocation of costs between a carrier's regulated and 
nonregulated activities. Each cost category shall be allocated between 
regulated and nonregulated activities in accordance with the following 
hierarchy:
    (i) Whenever possible, common cost categories are to be allocated 
based upon direct analysis of the origin of the cost themselves.
    (ii) When direct analysis is not possible, common cost categories 
shall be allocated based upon an indirect, cost-causative linkage to 
another cost category (or group of cost categories) for which a direct 
assignment or allocation is available.
    (iii) When neither direct nor indirect measures of cost allocation 
can be found, the cost category shall be allocated based upon a general 
allocator computed by using the ratio of all expenses directly assigned 
or attributed to regulated and nonregulated activities.
    (4) The allocation of central office equipment and outside plant 
investment costs between regulated and nonregulated activities shall be 
based upon the relative regulated and nonregulated usage of the 
investment during the calendar year when nonregulated usage is greatest 
in comparison to regulated usage during the three calendar years 
beginning with the calendar year during which the investment usage 
forecast is filed.
    (c) A telecommunications carrier may not use services that are not 
competitive to subsidize services subject to competition. Services 
included in the definition of universal service shall bear no more than 
a reasonable share

[[Page 265]]

of the joint and common costs of facilities used to provide those 
services.

[52 FR 6560, Mar. 4, 1987, as amended at 52 FR 39534, Oct. 22, 1987; 54 
FR 49762, Dec. 1, 1989; 62 FR 45588, Aug. 28, 1997; 67 FR 5702, Feb. 6, 
2002]



Sec. 64.902  Transactions with affiliates.

    Except for carriers which employ average schedules in lieu of 
determining their costs, all carriers subject to Sec. 64.901 are also 
subject to the provisions of Sec. 32.27 of this chapter concerning 
transactions with affiliates.

[55 FR 30461, July 26, 1990]



Sec. 64.903  Cost allocation manuals.

    (a) Each incumbent local exchange carrier having annual revenues 
from regulated telecommunications operations that are equal to or above 
the indexed revenue threshold (as defined in Sec. 32.9000 of this 
chapter) except mid-sized incumbent local exchange carriers is required 
to file a cost allocation manual describing how it separates regulated 
from nonregulated costs. The manual shall contain the following 
information regarding the carrier's allocation of costs between 
regulated and nonregulated activities:
    (1) A description of each of the carrier's nonregulated activities;
    (2) A list of all the activities to which the carrier now accords 
incidental accounting treatment and the justification therefor;
    (3) A chart showing all of the carrier's corporate affiliates;
    (4) A statement identifying each affiliate that engages in or will 
engage in transactions with the carrier and describing the nature, terms 
and frequency of each transaction;
    (5) A cost apportionment table showing, for each account containing 
costs incurred in providing regulated services, the cost pools with that 
account, the procedures used to place costs into each cost pool, and the 
method used to apportion the costs within each cost pool between 
regulated and nonregulated activities; and
    (6) A description of the time reporting procedures that the carrier 
uses, including the methods or studies designed to measure and allocate 
non-productive time.
    (b) Each carrier shall ensure that the information contained in its 
cost allocation manual is accurate. Carriers must update their cost 
allocation manuals at least annually, except that changes to the cost 
apportionment table and to the description of time reporting procedures 
must be filed at the time of implementation. Annual cost allocation 
manual updates shall be filed on or before the last working day of each 
calendar year. Proposed changes in the description of time reporting 
procedures, the statement concerning affiliate transactions, and the 
cost apportionment table must be accompanied by a statement quantifying 
the impact of each change on regulated operations. Changes in the 
description of time reporting procedures and the statement concerning 
affiliate transactions must be quantified in $100,000 increments at the 
account level. Changes in cost apportionment tables must be quantified 
in $100,000 increments at the cost pool level. The Chief, Wireline 
Competition Bureau may suspend any such changes for a period not to 
exceed 180 days, and may thereafter allow the change to become effective 
or prescribe a different procedure.
    (c) The Commission may by order require any other communications 
common carrier to file and maintain a cost allocation manual as provided 
in this section.

[57 FR 4375, Feb. 5, 1992, as amended at 59 FR 46358, Sept. 8, 1994; 61 
FR 50246, Sept. 25, 1996; 62 FR 39779, July 24, 1997; 65 FR 16335, Mar. 
28, 2000; 67 FR 5702, Feb. 6, 2002; 67 FR 13229, Mar. 21, 2002]



Sec. 64.904  Independent audits.

    (a) Each carrier required to file a cost allocation manual shall 
elect to either have an attest engagement performed by an independent 
auditor every two years, covering the prior two year period, or have a 
financial audit performed by an independent auditor every two years, 
covering the prior two year period. In either case, the initial 
engagement shall be performed in the calendar year after the carrier is 
first required to file a cost allocation manual.

[[Page 266]]

    (b) The attest engagement shall be an examination engagement and 
shall provide a written communication that expresses an opinion that the 
systems, processes, and procedures applied by the carrier to generate 
the results reported pursuant to Sec. 43.21(e)(2) of this chapter comply 
with the Commission's Joint Cost Orders issued in conjunction with CC 
Docket No. 86-111, the Commission's Accounting Safeguards proceeding in 
CC Docket No. 96-150, and the Commission's rules and regulations 
including Secs. 32.23 and 32.27 of this chapter, and Sec. 64.901, and 
Sec. 64.903 in force as of the date of the auditor's report. At least 30 
days prior to beginning the attestation engagement, the independent 
auditors shall provide the Commission with the audit program. The attest 
engagement shall be conducted in accordance with the attestation 
standards established by the American Institute of Certified Public 
Accountants, except as otherwise directed by the Chief, Enforcement 
Bureau.
    (c) The biennial financial audit shall provide a positive opinion on 
whether the applicable date shown in the carrier's annual report 
required by Sec. 43.21(e)(2) of this chapter present fairly, in all 
material respects, the information of the Commission's Joint Cost Orders 
issued in conjunction with CC Docket No. 86-111, the Commission's 
Accounting Safeguards proceeding in CC Docket No. 96-150, and the 
Commission's rules and regulations including Secs. 32.23 and 32.27 of 
this chapter, and Sec. 64.901, and Sec. 64.903 in force as of the date 
of the auditor's report. The audit shall be conducted in accordance with 
generally accepted auditing standards, except as otherwise directed by 
the Chief, Enforcement Bureau. The report of the independent auditor 
shall be filed at the time that the carrier files the annual reports 
required by Sec. 43.21(e)(2) of this chapter.

[67 FR 5702, Feb. 6, 2002, as amended at 67 FR 13229, Mar. 21, 2002]



Sec. 64.905  Annual certification.

    A mid-sized incumbent local exchange carrier, as defined in 
Sec. 32.9000 of this chapter, shall file a certification with the 
Commission stating that it is complying with Sec. 64.901. The 
certification must be signed, under oath, by an officer of the mid-sized 
incumbent LEC, and filed with the Commission on an annual basis at the 
time that the mid-sized incumbent LEC files the annual reports required 
by Sec. 43.21(e)(2) of this chapter.

[67 FR 5702, Feb. 6, 2002]



  Subpart J--International Settlements Policy and Modification Requests



Sec. 64.1001  International settlements policy and modification requests.

    (a) The procedures set forth in this rule are subject to Commission 
policies on international operating agreements in CC Dkt. No. 90-337.
    (b) If the international settlement arrangement in the operating 
agreement or amendment referred to in Sec. 43.51(e)(1) or (e)(2) of this 
chapter differs from the arrangement in effect in the operating 
agreement of another carrier providing service to or from the same 
foreign point, the carrier must file a modification request under this 
section unless the international route is exempt from the international 
settlements policy under Sec. 43.51(e)(3) of this chapter.
    (c) A modification request must contain the following information:
    (1) The applicable international service;
    (2) The name of the foreign telecommunications administration;
    (3) The present accounting rate (including any surcharges);
    (4) The new accounting rate (including any surcharges);
    (5) The effective date;
    (6) The division of the accounting rate; and
    (7) An explanation of the proposed modification(s) in the operating 
agreement with the foreign correspondent.
    (d) A modification request must contain a notarized statement that 
the filing carrier:
    (1) Has not bargained for, nor has knowledge of, exclusive 
availability of the new accounting rate;
    (2) Has not bargained for, nor has any indication that it will 
receive, more than its proportionate share of return traffic; and
    (3) Has informed the foreign administration that U.S. policy 
requires that

[[Page 267]]

competing U.S. carriers have access to accounting rates negotiated by 
the filing carrier with the foreign administration on a 
nondiscriminatory basis.
    (e) An operating agreement or amendment filed under a modification 
request cannot become effective until the modification request has been 
granted under paragraph (g) of this section.
    (f) Carriers must serve a copy of the modification request on all 
carriers providing the same or similar service to the foreign 
administration identified in the filing on the same day a modification 
request is filed.
    (g) All modification requests will be subject to a twenty-one (21) 
day pleading period for objections or comments, commencing the date 
after the request is filed. If the modification request is not complete 
when filed, the carrier will be notified that additional information is 
to be submitted, and a new 21 day pleading period will begin when the 
additional information is filed. The modification request will be deemed 
granted as of the twenty-second (22nd) day without any formal staff 
action being taken: provided
    (1) No objections have been filed, and
    (2) The International Bureau has not notified the carrier that grant 
of the modification request may not serve the public interest and that 
implementation of the proposed modification must await formal staff 
action on the modification request. If objections or comments are filed, 
the carrier requesting the modification request may file a response 
pursuant to Sec. 1.45 of this chapter. Modification requests that are 
formally opposed must await formal action by the International Bureau 
before the proposed modification can be implemented.

[56 FR 25372, June 4, 1991, as amended at 58 FR 4354, Jan. 14, 1993; 60 
FR 5333, Jan. 27, 1995; 62 FR 5541, Feb. 6, 1997; 62 FR 64758, Dec. 9, 
1997; 64 FR 34742, June 29, 1999; 66 FR 16882, Mar. 28, 2001]



                Subpart K--Changing Long Distance Service



Sec. 64.1100  Definitions.

    (a) The term submitting carrier is generally any telecommunications 
carrier that requests on the behalf of a subscriber that the 
subscriber's telecommunications carrier be changed, and seeks to provide 
retail services to the end user subscriber. A carrier may be treated as 
a submitting carrier, however, if it is responsible for any unreasonable 
delays in the submission of carrier change requests or for the 
submission of unauthorized carrier change requests, including fraudulent 
authorizations.
    (b) The term executing carrier is generally any telecommunications 
carrier that effects a request that a subscriber's telecommunications 
carrier be changed. A carrier may be treated as an executing carrier, 
however, if it is responsible for any unreasonable delays in the 
execution of carrier changes or for the execution of unauthorized 
carrier changes, including fraudulent authorizations.
    (c) The term authorized carrier is generally any telecommunications 
carrier that submits a change, on behalf of a subscriber, in the 
subscriber's selection of a provider of telecommunications service with 
the subscriber's authorization verified in accordance with the 
procedures specified in this part.
    (d) The term unauthorized carrier is generally any 
telecommunications carrier that submits a change, on behalf of a 
subscriber, in the subscriber's selection of a provider of 
telecommunications service but fails to obtain the subscriber's 
authorization verified in accordance with the procedures specified in 
this part.
    (e) The term unauthorized change is a change in a subscriber's 
selection of a provider of telecommunications service that was made 
without authorization verified in accordance with the verification 
procedures specified in this part.
    (f) The term state commission shall include any state entity with 
the state-designated authority to resolve the complaints of such state's 
residents arising out of an allegation that an unauthorized change of a 
telecommunication service provider has occurred that has elected, in 
accordance with the requirements of Sec. 64.1110(a), to administer the 
Federal Communications Commission's slamming rules and remedies, as 
enumerated in Secs. 64.1100 through 64.1190.

[[Page 268]]

    (g) The term relevant governmental agency shall be the state 
commission if the complainant files a complaint with the state 
commission or if the complaint is forwarded to the state commission by 
the Federal Communications Commission, and the Federal Communications 
Commission if the complainant files a complaint with the Federal 
Communications Commission, and the complaint is not forwarded to a state 
commission.
    (h) The term subscriber is any one of the following:
    (1) The party identified in the account records of a common carrier 
as responsible for payment of the telephone bill;
    (2) Any adult person authorized by such party to change 
telecommunications services or to charge services to the account; or
    (3) Any person contractually or otherwise lawfully authorized to 
represent such party.

[65 FR 47690, Aug. 3, 2000, as amended at 66 FR 12892, Mar. 1, 2001]



Sec. 64.1110  State notification of election to administer FCC rules.

    (a) Initial Notification. State notification of an intention to 
administer the Federal Communication Commission's unauthorized carrier 
change rules and remedies, as enumerated in Secs. 64.1100 through 
64.1190, shall be filed with the Commission Secretary in CC Docket No. 
94-129 with a copy of such notification provided to the Consumer 
Information Bureau Chief. Such notification shall contain, at a minimum, 
information on where consumers should file complaints, the type of 
documentation, if any, that must accompany a complaint, and the 
procedures the state will use to adjudicate complaints.
    (b) Withdrawal of Notification. State notification of an intention 
to discontinue administering the Federal Communication Commission's 
unauthorized carrier change rules and remedies, as enumerated in 
Secs. 64.1100 through 64.1190, shall be filed with the Commission 
Secretary in CC Docket No. 94-129 with a copy of such amended 
notification provided to the Consumer Information Bureau Chief. Such 
discontinuance shall become effective 60 days after the Commission's 
receipt of the state's letter.

[65 FR 47691, Aug. 3, 2000]



Sec. 64.1120  Verification of orders for telecommunications service.

    (a) No telecommunications carrier shall submit or execute a change 
on the behalf of a subscriber in the subscriber's selection of a 
provider of telecommunications service except in accordance with the 
procedures prescribed in this subpart. Nothing in this section shall 
preclude any State commission from enforcing these procedures with 
respect to intrastate services.
    (1) No submitting carrier shall submit a change on the behalf of a 
subscriber in the subscriber's selection of a provider of 
telecommunications service prior to obtaining:
    (i) Authorization from the subscriber, and
    (ii) Verification of that authorization in accordance with the 
procedures prescribed in this section. The submitting carrier shall 
maintain and preserve records of verification of subscriber 
authorization for a minimum period of two years after obtaining such 
verification.
    (2) An executing carrier shall not verify the submission of a change 
in a subscriber's selection of a provider of telecommunications service 
received from a submitting carrier. For an executing carrier, compliance 
with the procedures described in this part shall be defined as prompt 
execution, without any unreasonable delay, of changes that have been 
verified by a submitting carrier.
    (3) Commercial mobile radio services (CMRS) providers shall be 
excluded from the verification requirements of this part as long as they 
are not required to provide equal access to common carriers for the 
provision of telephone toll services, in accordance with 47 U.S.C. 
332(c)(8).
    (b) Where a telecommunications carrier is selling more than one type 
of telecommunications service (e.g., local exchange, intraLATA/
intrastate toll, interLATA/interstate toll, and international toll) that 
carrier must obtain separate authorization from the subscriber for each 
service sold, although

[[Page 269]]

the authorizations may be made within the same solicitation. Each 
authorization must be verified separately from any other authorizations 
obtained in the same solicitation. Each authorization must be verified 
in accordance with the verification procedures prescribed in this part.
    (c) No telecommunications carrier shall submit a preferred carrier 
change order unless and until the order has been confirmed in accordance 
with one of the following procedures:
    (1) The telecommunications carrier has obtained the subscriber's 
written or electronically signed authorization in a form that meets the 
requirements of Sec. 64.1130; or
    (2) The telecommunications carrier has obtained the subscriber's 
electronic authorization to submit the preferred carrier change order. 
Such authorization must be placed from the telephone number(s) on which 
the preferred carrier is to be changed and must confirm the information 
in paragraph (a)(1) of this section. Telecommunications carriers 
electing to confirm sales electronically shall establish one or more 
toll-free telephone numbers exclusively for that purpose. Calls to the 
number(s) will connect a subscriber to a voice response unit, or similar 
mechanism, that records the required information regarding the preferred 
carrier change, including automatically recording the originating 
automatic number identification; or
    (3) An appropriately qualified independent third party has obtained, 
in accordance with the procedures set forth in paragraphs (c)3)(i) 
through (c)(3)(iv) of this section, the subscriber's oral authorization 
to submit the preferred carrier change order that confirms and includes 
appropriate verification data (e.g., the subscriber's date of birth or 
social security number). The independent third party must not be owned, 
managed, controlled, or directed by the carrier or the carrier's 
marketing agent; must not have any financial incentive to confirm 
preferred carrier change orders for the carrier or the carrier's 
marketing agent; and must operate in a location physically separate from 
the carrier or the carrier's marketing agent.
    (i) Methods of third party verification. Automated third party 
verification systems and three-way conference calls may be used for 
verification purposes so long as the requirements of paragraphs 
(c)(3)(ii) through (c)(3)(iv) of this section are satisfied.
    (ii) Carrier initiation of third party verification. A carrier or a 
carrier's sales representative initiating a three-way conference call or 
a call through an automated verification system must drop off the call 
once the three-way connection has been established.
    (iii) Requirements for content and format of third party 
verification. All third party verification methods shall elicit, at a 
minimum, the identity of the subscriber; confirmation that the person on 
the call is authorized to make the carrier change; confirmation that the 
person on the call wants to make the carrier change; the names of the 
carriers affected by the change; the telephone numbers to be switched; 
and the types of service involved. Third party verifiers may not market 
the carrier's services by providing additional information, including 
information regarding preferred carrier freeze procedures.
    (iv) Other requirements for third party verification. All third 
party verifications shall be conducted in the same language that was 
used in the underlying sales transaction and shall be recorded in their 
entirety. In accordance with the procedures set forth in 
64.1120(a)(1)(ii), submitting carriers shall maintain and preserve audio 
records of verification of subscriber authorization for a minimum period 
of two years after obtaining such verification. Automated systems must 
provide consumers with an option to speak with a live person at any time 
during the call.
    (4) Any State-enacted verification procedures applicable to 
intrastate preferred carrier change orders only.
    (d) Telecommunications carriers must provide subscribers the option 
of using one of the authorization and verification procedures specified 
in Sec. 64.1120(c) in addition to an electronically signed authorization 
and verification procedure under 64.1120(c)(1).

[[Page 270]]

    (e) A telecommunications carrier may acquire, through a sale or 
transfer, either part or all of another telecommunica- tions carrier's 
subscriber base without obtaining each subscriber's authorization and 
verification in accordance with Sec. 64.1120(c), provided that the 
acquiring carrier complies with the following streamlined procedures. A 
telecommunications carrier may not use these streamlined procedures for 
any fraudulent purpose, including any attempt to avoid liability for 
violations under part 64, subpart K of the Commission rules.
    (1) No later than 30 days before the planned transfer of the 
affected subscribers from the selling or transferring carrier to the 
acquiring carrier, the acquiring carrier shall file with the 
Commission's Office of the Secretary a letter notification in CC Docket 
No. 00-257 providing the names of the parties to the transaction, the 
types of telecommunications services to be provided to the affected 
subscribers, and the date of the transfer of the subscriber base to the 
acquiring carrier. In the letter notification, the acquiring carrier 
also shall certify compliance with the requirement to provide advance 
subscriber notice in accordance with Sec. 64.1120(e)(3), with the 
obligations specified in that notice, and with other statutory and 
Commission requirements that apply to this streamlined process. In 
addition, the acquiring carrier shall attach a copy of the notice sent 
to the affected subscribers.
    (2) If, subsequent to the filing of the letter notification with the 
Commission required by Sec. 64.1120(e)(1), any material changes to the 
required information should develop, the acquiring carrier shall file 
written notification of these changes with the Commission no more than 
10 days after the transfer date announced in the prior notification. The 
Commission reserves the right to require the acquiring carrier to send 
an additional notice to the affected subscribers regarding such material 
changes.
    (3) Not later than 30 days before the transfer of the affected 
subscribers from the selling or transferring carrier to the acquiring 
carrier, the acquiring carrier shall provide written notice to each 
affected subscriber of the information specified. The acquiring carrier 
is required to fulfill the obligations set forth in the advance 
subscriber notice. The advance subscriber notice shall be provided in a 
manner consistent with 47 U.S.C. 255 and the Commission's rules 
regarding accessibility to blind and visually-impaired consumers, 47 CFR 
6.3, 6.5 of this chapter. The following information must be included in 
the advance subscriber notice:
    (i) The date on which the acquiring carrier will become the 
subscriber's new provider of telecommunications service,
    (ii) The rates, terms, and conditions of the service(s) to be 
provided by the acquiring carrier upon the subscriber's transfer to the 
acquiring carrier, and the means by which the acquiring carrier will 
notify the subscriber of any change(s) to these rates, terms, and 
conditions.
    (iii) The acquiring carrier will be responsible for any carrier 
change charges associated with the transfer,
    (iv) The subscriber's right to select a different preferred carrier 
for the telecommunications service(s) at issue, if an alternative 
carrier is available,
    (v) All subscribers receiving the notice, even those who have 
arranged preferred carrier freezes through their local service providers 
on the service(s) involved in the transfer, will be transferred to the 
acquiring carrier, unless they have selected a different carrier before 
the transfer date; existing preferred carrier freezes on the service(s) 
involved in the transfer will be lifted; and the subscribers must 
contact their local service providers to arrange a new freeze.
    (vi) Whether the acquiring carrier will be responsible for handling 
any complaints filed, or otherwise raised, prior to or during the 
transfer against the selling or transferring carrier, and
    (vii) The toll-free customer service telephone number of the 
acquiring carrier.

[65 FR 47691, Aug. 3, 2000, as amended at 66 FR 12892, Mar. 1, 2001; 66 
FR 28124, May 22, 2001]

[[Page 271]]



Sec. 64.1130  Letter of agency form and content.

    (a) A telecommunications carrier may use a written or electronically 
signed letter of agency to obtain authorization and/or verification of a 
subscriber's request to change his or her preferred carrier selection. A 
letter of agency that does not conform with this section is invalid for 
purposes of this part.
    (b) The letter of agency shall be a separate document (or an easily 
separable document) or located on a separate screen or webpage 
containing only the authorizing language described in paragraph (e) of 
this section having the sole purpose of authorizing a telecommunications 
carrier to initiate a preferred carrier change. The letter of agency 
must be signed and dated by the subscriber to the telephone line(s) 
requesting the preferred carrier change.
    (c) The letter of agency shall not be combined on the same document, 
screen, or webpage with inducements of any kind.
    (d) Notwithstanding paragraphs (b) and (c) of this section, the 
letter of agency may be combined with checks that contain only the 
required letter of agency language as prescribed in paragraph (e) of 
this section and the necessary information to make the check a 
negotiable instrument. The letter of agency check shall not contain any 
promotional language or material. The letter of agency check shall 
contain in easily readable, bold-face type on the front of the check, a 
notice that the subscriber is authorizing a preferred carrier change by 
signing the check. The letter of agency language shall be placed near 
the signature line on the back of the check.
    (e) At a minimum, the letter of agency must be printed with a type 
of sufficient size and readable type to be clearly legible and must 
contain clear and unambiguous language that confirms:
    (1) The subscriber's billing name and address and each telephone 
number to be covered by the preferred carrier change order;
    (2) The decision to change the preferred carrier from the current 
telecommunications carrier to the soliciting telecommunications carrier;
    (3) That the subscriber designates [insert the name of the 
submitting carrier] to act as the subscriber's agent for the preferred 
carrier change;
    (4) That the subscriber understands that only one telecommunications 
carrier may be designated as the subscriber's interstate or interLATA 
preferred interexchange carrier for any one telephone number. To the 
extent that a jurisdiction allows the selection of additional preferred 
carriers (e.g., local exchange, intraLATA/intrastate toll, interLATA/
interstate toll, or international interexchange) the letter of agency 
must contain separate statements regarding those choices, although a 
separate letter of agency for each choice is not necessary; and
    (5) That the subscriber may consult with the carrier as to whether a 
fee will apply to the change in the subscriber's preferred carrier.
    (f) Any carrier designated in a letter of agency as a preferred 
carrier must be the carrier directly setting the rates for the 
subscriber.
    (g) Letters of agency shall not suggest or require that a subscriber 
take some action in order to retain the subscriber's current 
telecommunications carrier.
    (h) If any portion of a letter of agency is translated into another 
language then all portions of the letter of agency must be translated 
into that language. Every letter of agency must be translated into the 
same language as any promotional materials, oral descriptions or 
instructions provided with the letter of agency.
    (i) Letters of agency submitted with an electronically signed 
authorization must include the consumer disclosures required by Section 
101(c) of the Electronic Signatures in Global and National Commerce Act.
    (j) A telecommunications carrier shall submit a preferred carrier 
change order on behalf of a subscriber within no more than 60 days of 
obtaining a written or electronically signed letter of agency.

[64 FR 7760, Feb. 16, 1999. Redesignated at 65 FR 47692, Aug. 3, 2000, 
as amended at 66 FR 12893, Mar. 1, 2001; 66 FR 16151, Mar. 23, 2001]

[[Page 272]]



Sec. 64.1140  Carrier liability for slamming.

    (a) Carrier Liability for Charges. Any submitting telecommunications 
carrier that fails to comply with the procedures prescribed in this part 
shall be liable to the subscriber's properly authorized carrier in an 
amount equal to 150% of all charges paid to the submitting 
telecommunications carrier by such subscriber after such violation, as 
well as for additional amounts as prescribed in Sec. 64.1170. The 
remedies provided in this part are in addition to any other remedies 
available by law.
    (b) Subscriber Liability for Charges. Any subscriber whose selection 
of telecommunications services provider is changed without authorization 
verified in accordance with the procedures set for in this part is 
liable for charges as follows:
    (1) If the subscriber has not already paid charges to the 
unauthorized carrier, the subscriber is absolved of liability for 
charges imposed by the unauthorized carrier for service provided during 
the first 30 days after the unauthorized change. Upon being informed by 
a subscriber that an unauthorized change has occurred, the authorized 
carrier, the unauthorized carrier, or the executing carrier shall inform 
the subscriber of this 30-day absolution period. Any charges imposed by 
the unauthorized carrier on the subscriber for service provided after 
this 30-day period shall be paid by the subscriber to the authorized 
carrier at the rates the subscriber was paying to the authorized carrier 
at the time of the unauthorized change in accordance with the provisions 
of Sec. 64.1160(e).
    (2) If the subscriber has already paid charges to the unauthorized 
carrier, and the authorized carrier receives payment from the 
unauthorized carrier as provided for in paragraph (a) of this section, 
the authorized carrier shall refund or credit to the subscriber any 
amounts determined in accordance with the provisions of Sec. 64.1170(c).
    (3) If the subscriber has been absolved of liability as prescribed 
by this section, the unauthorized carrier shall also be liable to the 
subscriber for any charge required to return the subscriber to his or 
her properly authorized carrier, if applicable.

[65 FR 47691, Aug. 3, 2000]



Sec. 64.1150  Procedures for resolution of unauthorized changes in preferred carrier.

    (a) Notification of Alleged Unauthorized Carrier Change. Executing 
carriers who are informed of an unauthorized carrier change by a 
subscriber must immediately notify both the authorized and allegedly 
unauthorized carrier of the incident. This notification must include the 
identity of both carriers.
    (b) Referral of Complaint. Any carrier, executing, authorized, or 
allegedly unauthorized, that is informed by a subscriber or an executing 
carrier of an unauthorized carrier change shall direct that subscriber 
either to the state commission or, where the state commission has not 
opted to administer these rules, to the Federal Communications 
Commission's Consumer Information Bureau, for resolution of the 
complaint.
    (c) Notification of Receipt of Complaint. Upon receipt of an 
unauthorized carrier change complaint, the relevant governmental agency 
will notify the allegedly unauthorized carrier of the complaint and 
order that the carrier remove all unpaid charges for the first 30 days 
after the slam from the subscriber's bill pending a determination of 
whether an unauthorized change, as defined by Sec. 64.1100(e), has 
occurred, if it has not already done so.
    (d) Proof of Verification. Not more than 30 days after notification 
of the complaint, or such lesser time as is required by the state 
commission if a matter is brought before a state commission, the alleged 
unauthorized carrier shall provide to the relevant government agency a 
copy of any valid proof of verification of the carrier change. This 
proof of verification must contain clear and convincing evidence of a 
valid authorized carrier change, as that term is defined in 
Secs. 64.1150 through 64.1160. The relevant governmental agency will 
determine whether an unauthorized change, as defined by Sec. 64.1100(e), 
has occurred using such proof and any evidence supplied by the 
subscriber. Failure by the carrier to respond or provide proof of 
verification

[[Page 273]]

will be presumed to be clear and convincing evidence of a violation.
    (e) Election of Forum. The Federal Communications Commission will 
not adjudicate a complaint filed pursuant to Sec. 1.719 or Secs. 1.720 
through 1.736 of this chapter, involving an alleged unauthorized change, 
as defined by Sec. 64.1100(e), while a complaint based on the same set 
of facts is pending with a state commission.

[65 FR 47692, Aug. 3, 2000]



Sec. 64.1160  Absolution procedures where the subscriber has not paid charges.

    (a) This section shall only apply after a subscriber has determined 
that an unauthorized change, as defined by Sec. 64.1100(e), has occurred 
and the subscriber has not paid charges to the allegedly unauthorized 
carrier for service provided for 30 days, or a portion thereof, after 
the unauthorized change occurred.
    (b) An allegedly unauthorized carrier shall remove all charges 
incurred for service provided during the first 30 days after the alleged 
unauthorized change occurred, as defined by Sec. 64.1100(e), from a 
subscriber's bill upon notification that such unauthorized change is 
alleged to have occurred.
    (c) An allegedly unauthorized carrier may challenge a subscriber's 
allegation that an unauthorized change, as defined by Sec. 64.1100(e), 
occurred. An allegedly unauthorized carrier choosing to challenge such 
allegation shall immediately notify the complaining subscriber that: the 
complaining subscriber must file a complaint with a state commission 
that has opted to administer the FCC's rules, pursuant to Sec. 64.1110, 
or the FCC within 30 days of either; the date of removal of charges from 
the complaining subscriber's bill in accordance with paragraph (b) of 
this section or; the date the allegedly unauthorized carrier notifies 
the complaining subscriber of the requirements of this paragraph, 
whichever is later; and a failure to file such a complaint within this 
30-day time period will result in the charges removed pursuant to 
paragraph (b) of this section being reinstated on the subscriber's bill 
and, consequently, the complaining subscriber's will only be entitled to 
remedies for the alleged unauthorized change other than those provided 
for in Sec. 64.1140(b)(1). No allegedly unauthorized carrier shall 
reinstate charges to a subscriber's bill pursuant to the provisions of 
this paragraph without first providing such subscriber with a reasonable 
opportunity to demonstrate that the requisite complaint was timely filed 
within the 30-day period described in this paragraph.
    (d) If the relevant governmental agency determines after reasonable 
investigation that an unauthorized change, as defined by 
Sec. 64.1100(e), has occurred, an order shall be issued providing that 
the subscriber is entitled to absolution from the charges incurred 
during the first 30 days after the unauthorized carrier change occurred, 
and neither the authorized or unauthorized carrier may pursue any 
collection against the subscriber for those charges.
    (e) If the subscriber has incurred charges for more than 30 days 
after the unauthorized carrier change, the unauthorized carrier must 
forward the billing information for such services to the authorized 
carrier, which may bill the subscriber for such services using either of 
the following means:
    (1) The amount of the charge may be determined by a re-rating of the 
services provided based on what the authorized carrier would have 
charged the subscriber for the same services had an unauthorized change, 
as described in Sec. 64.1100(e), not occurred; or
    (2) The amount of the charge may be determined using a 50% Proxy 
Rate as follows: Upon receipt of billing information from the 
unauthorized carrier, the authorized carrier may bill the subscriber for 
50% of the rate the unauthorized carrier would have charged the 
subscriber for the services provided. However, the subscriber shall have 
the right to reject use of this 50% proxy method and require that the 
authorized carrier perform a re-rating of the services provided, as 
described in paragraph (e)(1) of this section.
    (f) If the unauthorized carrier received payment from the subscriber 
for services provided after the first 30 days after the unauthorized 
change occurred, the obligations for payments and refunds provided for 
in Sec. 64.1170

[[Page 274]]

shall apply to those payments. If the relevant governmental agency 
determines after reasonable investigation that the carrier change was 
authorized, the carrier may re-bill the subscriber for charges incurred.

[65 FR 47692, Aug. 3, 2000]



Sec. 64.1170  Reimbursement procedures where the subscriber has paid charges.

    (a) The procedures in this section shall only apply after a 
subscriber has determined that an unauthorized change, as defined by 
Sec. 64.1100(e), has occurred and the subscriber has paid charges to an 
allegedly unauthorized carrier.
    (b) If the relevant governmental agency determines after reasonable 
investigation that an unauthorized change, as defined by 
Sec. 64.1100(e), has occurred, it shall issue an order directing the 
unauthorized carrier to forward to the authorized carrier the following, 
in addition to any appropriate state remedies:
    (1) An amount equal to 150% of all charges paid by the subscriber to 
the unauthorized carrier; and
    (2) Copies of any telephone bills issued from the unauthorized 
carrier to the subscriber. This order shall be sent to the subscriber, 
the unauthorized carrier, and the authorized carrier.
    (c) Within ten days of receipt of the amount provided for in 
paragraph (b)(1) of this section, the authorized carrier shall provide a 
refund or credit to the subscriber in the amount of 50% of all charges 
paid by the subscriber to the unauthorized carrier. The subscriber has 
the option of asking the authorized carrier to re-rate the unauthorized 
carrier's charges based on the rates of the authorized carrier and, on 
behalf of the subscriber, seek an additional refund from the 
unauthorized carrier, to the extent that the re-rated amount exceeds the 
50% of all charges paid by the subscriber to the unauthorized carrier. 
The authorized carrier shall also send notice to the relevant 
governmental agency that it has given a refund or credit to the 
subscriber.
    (d) If an authorized carrier incurs billing and collection expenses 
in collecting charges from the unauthorized carrier, the unauthorized 
carrier shall reimburse the authorized carrier for reasonable expenses.
    (e) If the authorized carrier has not received payment from the 
unauthorized carrier as required by paragraph (c) of this section, the 
authorized carrier is not required to provide any refund or credit to 
the subscriber. The authorized carrier must, within 45 days of receiving 
an order as described in paragraph (b) of this section, inform the 
subscriber and the relevant governmental agency that issued the order if 
the unauthorized carrier has failed to forward to it the appropriate 
charges, and also inform the subscriber of his or her right to pursue a 
claim against the unauthorized carrier for a refund of all charges paid 
to the unauthorized carrier.
    (f) Where possible, the properly authorized carrier must reinstate 
the subscriber in any premium program in which that subscriber was 
enrolled prior to the unauthorized change, if the subscriber's 
participation in that program was terminated because of the unauthorized 
change. If the subscriber has paid charges to the unauthorized carrier, 
the properly authorized carrier shall also provide or restore to the 
subscriber any premiums to which the subscriber would have been entitled 
had the unauthorized change not occurred. The authorized carrier must 
comply with the requirements of this section regardless of whether it is 
able to recover from the unauthorized carrier any charges that were paid 
by the subscriber.

[65 FR 47693, Aug. 3, 2000]



Sec. 64.1180  Reporting requirement.

    (a) Applicability. Each provider of telephone exchange and/or 
telephone toll service shall submit to the Commission via e-mail 
([email protected]), U.S. Mail, or facsimile a slamming complaint 
report form identifying the number of slamming complaints received 
during the reporting period and other information as specified in 
paragraph (b) of this section.
    (b) Contents of report. The report shall contain the following 
information:
    (1) The information specified in paragraph (a) of this section;

[[Page 275]]

    (2) The number of slamming complaints received during the reporting 
period that the carrier has investigated and found to be valid.
    (3) The number of slamming complaints received during the reporting 
period, investigated or not, that the carrier has directly resolved with 
consumers;
    (4) If the reporting carrier is a wireline or fixed wireless local 
exchange carrier providing service to end user subscribers, the name of 
each entity against which the slamming complaints received during the 
reporting period were directed;
    (5) If the reporting carrier is a wireline or fixed wireless local 
exchange carrier providing service to end user subscribers, the number 
of slamming complaints received during the reporting period that were 
lodged against each entity identified in paragraph (b)(4) of this 
section; and
    (6) The total number of subscribers the reporting carrier is serving 
at the end of the relevant reporting period.
    (c) Semiannual reporting requirement. Reporting shall commence on 
August 15, 2001, covering the effective date of this requirement, as 
announced in the Federal Register, through June 30, 2001. Reports filed 
on February 15, 2002 shall cover the period between July 1, 2001 and 
December 31, 2001. Thereafter, carriers subject to the reporting 
requirement pursuant to paragraph (a) of this section shall submit 
semiannual slamming complaint reports on August 15 (covering January 1 
through June 30) and on February 15 (covering July 1 through December 
31).

[66 FR 12893, Mar. 1, 2001]



Sec. 64.1190  Preferred carrier freezes.

    (a) A preferred carrier freeze (or freeze) prevents a change in a 
subscriber's preferred carrier selection unless the subscriber gives the 
carrier from whom the freeze was requested his or her express consent. 
All local exchange carriers who offer preferred carrier freezes must 
comply with the provisions of this section.
    (b) All local exchange carriers who offer preferred carrier freezes 
shall offer freezes on a nondiscriminatory basis to all subscribers, 
regardless of the subscriber's carrier selections.
    (c) Preferred carrier freeze procedures, including any solicitation, 
must clearly distinguish among telecommunications services (e.g., local 
exchange, intraLATA/intrastate toll, interLATA/interstate toll, and 
international toll) subject to a preferred carrier freeze. The carrier 
offering the freeze must obtain separate authorization for each service 
for which a preferred carrier freeze is requested.
    (d) Solicitation and imposition of preferred carrier freezes.
    (1) All carrier-provided solicitation and other materials regarding 
preferred carrier freezes must include:
    (i) An explanation, in clear and neutral language, of what a 
preferred carrier freeze is and what services may be subject to a 
freeze;
    (ii) A description of the specific procedures necessary to lift a 
preferred carrier freeze; an explanation that these steps are in 
addition to the Commission's verification rules in Secs. 64.1120 and 
64.1130 for changing a subscriber's preferred carrier selections; and an 
explanation that the subscriber will be unable to make a change in 
carrier selection unless he or she lifts the freeze.
    (iii) An explanation of any charges associated with the preferred 
carrier freeze.
    (2) No local exchange carrier shall implement a preferred carrier 
freeze unless the subscriber's request to impose a freeze has first been 
confirmed in accordance with one of the following procedures:
    (i) The local exchange carrier has obtained the subscriber's written 
or electronically signed authorization in a form that meets the 
requirements of Sec. 64.1190(d)(3); or
    (ii) The local exchange carrier has obtained the subscriber's 
electronic authorization, placed from the telephone number(s) on which 
the preferred carrier freeze is to be imposed, to impose a preferred 
carrier freeze. The electronic authorization should confirm appropriate 
verification data (e.g., the subscriber's date of birth or social 
security number) and the information required in 
Secs. 64.1190(d)(3)(ii)(A) through (D). Telecommunications carriers 
electing to confirm preferred carrier freeze orders electronically shall 
establish one or more toll-free telephone

[[Page 276]]

numbers exclusively for that purpose. Calls to the number(s) will 
connect a subscriber to a voice response unit, or similar mechanism that 
records the required information regarding the preferred carrier freeze 
request, including automatically recording the originating automatic 
numbering identification; or
    (iii) An appropriately qualified independent third party has 
obtained the subscriber's oral authorization to submit the preferred 
carrier freeze and confirmed the appropriate verification data (e.g., 
the subscriber's date of birth or social security number) and the 
information required in Sec. 64.1190(d)(3)(ii)(A) through (D). The 
independent third party must not be owned, managed, or directly 
controlled by the carrier or the carrier's marketing agent; must not 
have any financial incentive to confirm preferred carrier freeze 
requests for the carrier or the carrier's marketing agent; and must 
operate in a location physically separate from the carrier or the 
carrier's marketing agent. The content of the verification must include 
clear and conspicuous confirmation that the subscriber has authorized a 
preferred carrier freeze.
    (3) Written authorization to impose a preferred carrier freeze. A 
local exchange carrier may accept a subscriber's written and signed 
authorization to impose a freeze on his or her preferred carrier 
selection. Written authorization that does not conform with this section 
is invalid and may not be used to impose a preferred carrier freeze.
    (i) The written authorization shall comply with Secs. 64.1130(b), 
(c), and (h) of the Commission's rules concerning the form and content 
for letters of agency.
    (ii) At a minimum, the written authorization must be printed with a 
readable type of sufficient size to be clearly legible and must contain 
clear and unambiguous language that confirms:
    (A) The subscriber's billing name and address and the telephone 
number(s) to be covered by the preferred carrier freeze;
    (B) The decision to place a preferred carrier freeze on the 
telephone number(s) and particular service(s). To the extent that a 
jurisdiction allows the imposition of preferred carrier freezes on 
additional preferred carrier selections (e.g., for local exchange, 
intraLATA/intrastate toll, interLATA/interstate toll service, and 
international toll), the authorization must contain separate statements 
regarding the particular selections to be frozen;
    (C) That the subscriber understands that she or he will be unable to 
make a change in carrier selection unless she or he lifts the preferred 
carrier freeze; and
    (D) That the subscriber understands that any preferred carrier 
freeze may involve a charge to the subscriber.
    (e) Procedures for lifting preferred carrier freezes. All local 
exchange carriers who offer preferred carrier freezes must, at a 
minimum, offer subscribers the following procedures for lifting a 
preferred carrier freeze:
    (1) A local exchange carrier administering a preferred carrier 
freeze must accept a subscriber's written or electronically signed 
authorization stating his or her intent to lift a preferred carrier 
freeze; and
    (2) A local exchange carrier administering a preferred carrier 
freeze must accept a subscriber's oral authorization stating her or his 
intent to lift a preferred carrier freeze and must offer a mechanism 
that allows a submitting carrier to conduct a three-way conference call 
with the carrier administering the freeze and the subscriber in order to 
lift a freeze. When engaged in oral authorization to lift a preferred 
carrier freeze, the carrier administering the freeze shall confirm 
appropriate verification data (e.g., the subscriber's date of birth or 
social security number) and the subscriber's intent to lift the 
particular freeze.

[64 FR 7762, Feb. 16, 1999, as amended at 66 FR 12893, Mar. 1, 2001]



Sec. 64.1195  Registration requirement.

    (a) Applicability. A telecommunications carrier that will provide 
interstate telecommunications service shall file the registration 
information described in paragraph (b) of this section in accordance 
with the procedures described in paragraphs (c) and (g) of this

[[Page 277]]

section. Any telecommunications carrier already providing interstate 
telecommunications service on the effective date of these rules shall 
submit the relevant portion of its FCC Form 499-A in accordance with 
paragraphs (b) and (c) of this section.
    (b) Information required for purposes of part 64. A 
telecommunications carrier that is subject to the registration 
requirement pursuant to paragraph (a) of this section shall provide the 
following information:
    (1) The carrier's business name(s) and primary address;
    (2) The names and business addresses of the carrier's chief 
executive officer, chairman, and president, or, in the event that a 
company does not have such executives, three similarly senior-level 
officials of the company;
    (3) The carrier's regulatory contact and/or designated agent;
    (4) All names that the carrier has used in the past; and
    (5) The state(s) in which the carrier provides telecommunications 
service.
    (c) Submission of registration. A carrier that is subject to the 
registration requirement pursuant to paragraph (a) of this section shall 
submit the information described in paragraph (b) of this section in 
accordance with the Instructions to FCC Form 499-A. FCC Form 499-A must 
be submitted under oath and penalty of perjury.
    (d) Rejection of registration. The Commission may reject or suspend 
a carrier's registration for any of the reasons identified in paragraphs 
(e) or (f) of this section.
    (e) Revocation or suspension of operating authority. After notice 
and opportunity to respond, the Commission may revoke or suspend the 
authorization of a carrier to provide service if the carrier provides 
materially false or incomplete information in its FCC Form 499-A or 
otherwise fails to comply with paragraphs (a), (b), and (c) of this 
section.
    (f) Imposition of fine. After notice and opportunity to respond, the 
Commission may impose a fine on a carrier that is subject to the 
registration requirement pursuant to paragraph (a) of this section if 
that carrier fails to submit an FCC Form 499-A in accordance with 
paragraphs (a), (b), and (c) of this section.
    (g) Changes in information. A carrier must notify the Commission of 
any changes to the information provided pursuant to paragraph (b) of 
this section within no more than one week of the change. Carriers may 
satisfy this requirement by filing the relevant portion of FCC Form 499-
A in accordance with the Instructions to such form.
    (h) Duty to confirm registration of other carriers. The Commission 
shall make available to the public a comprehensive listing of 
registrants and the information that they have provided pursuant to 
paragraph (b) of this section. A telecommunications carrier providing 
telecommunications service for resale shall have an affirmative duty to 
ascertain whether a potential carrier-customer (i.e., reseller) that is 
subject to the registration requirement pursuant to paragraph (a) of 
this section has filed an FCC Form 499-A with the Commission prior to 
offering service to that carrier-customer. After notice and opportunity 
to respond, the Commission may impose a fine on a carrier for failure to 
confirm the registration status of a potential carrier-customer before 
providing that carrier-customer with service.

[66 FR 12894, Mar. 1, 2001]



            Subpart L--Restrictions on Telephone Solicitation



Sec. 64.1200  Delivery restrictions.

    (a) No person may:
    (1) Initiate any telephone call (other than a call made for 
emergency purposes or made with the prior express consent of the called 
party) using an automatic telephone dialing system or an artificial or 
prerecorded voice,
    (i) To any emergency telephone line, including any 911 line and any 
emergency line of a hospital, medical physician or service office, 
health care facility, poison control center, or fire protection or law 
enforcement agency;
    (ii) To the telephone line of any guest room or patient room of a 
hospital, health care facility, elderly home, or similar establishment; 
or
    (iii) To any telephone number assigned to a paging service, cellular

[[Page 278]]

telephone service, specialized mobile radio service, or other radio 
common carrier service, or any service for which the called party is 
charged for the call;
    (2) Initiate any telephone call to any residential telephone line 
using an artificial or prerecorded voice to deliver a message without 
the prior express consent of the called party, unless the call is 
initiated for emergency purposes or is exempted by Sec. 64.1200(c) of 
this section.
    (3) Use a telephone facsimile machine, computer, or other device to 
send an unsolicited advertisement to a telephone facsimile machine.
    (4) Use an automatic telephone dialing system in such a way that two 
or more telephone lines of a multi-line business are engaged 
simultaneously.
    (b) For the purpose of Sec. 64.1200(a) of this section, the term 
emergency purposes means calls made necessary in any situation affecting 
the health and safety of consumers.
    (c) The term telephone call in Sec. 64.1200(a)(2) of this section 
shall not include a call or message by, or on behalf of, a caller:
    (1) That is not made for a commercial purpose,
    (2) That is made for a commercial purpose but does not include the 
transmission of any unsolicited advertisement,
    (3) To any person with whom the caller has an established business 
relationship at the time the call is made, or
    (4) Which is a tax-exempt nonprofit organization.
    (d) All artificial or prerecorded telephone messages delivered by an 
automatic telephone dialing system shall:
    (1) At the beginning of the message, state clearly the identity of 
the business, individual, or other entity initiating the call, and
    (2) During or after the message, state clearly the telephone number 
(other than that of the autodialer or prerecorded message player which 
placed the call) or address of such business, other entity, or 
individual.
    (e) No person or entity shall initiate any telephone solicitation to 
a residential telephone subscriber:
    (1) Before the hour of 8 a.m. or after 9 p.m. (local time at the 
called party's location), and
    (2) Unless such person or entity has instituted procedures for 
maintaining a list of persons who do not wish to receive telephone 
solicitations made by or on behalf of that person or entity. The 
procedures instituted must meet the following minimum standards:
    (i) Written policy. Persons or entities making telephone 
solicitations must have a written policy, available upon demand, for 
maintaining a do-not-call list.
    (ii) Training of personnel engaged in telephone solicitation. 
Personnel engaged in any aspect of telephone solicitation must be 
informed and trained in the existence and use of the do-not-call list.
    (iii) Recording, disclosure of do-not-call requests. If a person or 
entity making a telephone solicitation (or on whose behalf a 
solicitation is made) receives a request from a residential telephone 
subscriber not to receive calls from that person or entity, the person 
or entity must record the request and place the subscriber's name and 
telephone number on the do-not-call list at the time the request is 
made. If such requests are recorded or maintained by a party other than 
the person or entity on whose behalf the solicitation is made, the 
person or entity on whose behalf the solicitation is made will be liable 
for any failures to honor the do-not-call request. In order to protect 
the consumer's privacy, persons or entities must obtain a consumer's 
prior express consent to share or forward the consumer's request not to 
be called to a party other than the person or entity on whose behalf a 
solicitation is made or an affiliated entity.
    (iv) Identification of telephone solicitor. A person or entity 
making a telephone solicitation must provide the called party with the 
name of the individual caller, the name of the person or entity on whose 
behalf the call is being made, and a telephone number or address at 
which the person or entity may be contacted. If a person or entity makes 
a solicitation using an artificial or prerecorded voice message 
transmitted by an autodialer, the person or entity must provide a 
telephone number other

[[Page 279]]

than that of the autodialer or prerecorded message player which placed 
the call. The telephone number provided may not be a 900 number or any 
other number for which charges exceed local or long distance 
transmission charges.
    (v) Affiliated persons or entities. In the absence of a specific 
request by the subscriber to the contrary, a residential subscriber's 
do-not-call request shall apply to the particular business entity making 
the call (or on whose behalf a call is made), and will not apply to 
affiliated entities unless the consumer reasonably would expect them to 
be included given the identification of the caller and the product being 
advertised.
    (vi) Maintenance of do-not-call lists. A person or entity making 
telephone solicitations must maintain a record of a caller's request not 
to receive future telephone solicitations. A do not call request must be 
honored for 10 years from the time the request is made.
    (f) As used in this section:
    (1) The terms automatic telephone dialing system and autodialer mean 
equipment which has the capacity to store or produce telephone numbers 
to be called using a random or sequential number generator and to dial 
such numbers.
    (2) The term telephone facsimile machine means equipment which has 
the capacity to transcribe text or images, or both, from paper into an 
electronic signal and to transmit that signal over a regular telephone 
line, or to transcribe text or images (or both) from an electronic 
signal received over a regular telephone line onto paper.
    (3) The term telephone solicitation means the initiation of a 
telephone call or message for the purpose of encouraging the purchase or 
rental of, or investment in, property, goods, or services, which is 
transmitted to any person, but such term does not include a call or 
message:
    (i) To any person with that person's prior express invitation or 
permission;
    (ii) To any person with whom the caller has an established business 
relationship; or
    (iii) By or on behalf of a tax-exempt nonprofit organization.
    (4) The term established business relationship means a prior or 
existing relationship formed by a voluntary two-way communication 
between a person or entity and a residential subscriber with or without 
an exchange of consideration, on the basis of an inquiry, application, 
purchase or transaction by the residential subscriber regarding products 
or services offered by such person or entity, which relationship has not 
been previously terminated by either party.
    (5) The term unsolicited advertisement means any material 
advertising the commercial availability or quality of any property, 
goods, or services which is transmitted to any person without that 
person's prior express invitation or permission.

[57 FR 48335, Oct. 23, 1992; 57 FR 53293, Nov. 9, 1992, as amended at 60 
FR 42069, Aug. 15, 1995]



Sec. 64.1201  Restrictions on billing name and address disclosure.

    (a) As used in this section:
    (1) The term billing name and address means the name and address 
provided to a local exchange company by each of its local exchange 
customers to which the local exchange company directs bills for its 
services.
    (2) The term ``telecommunications service provider'' means 
interexchange carriers, operator service providers, enhanced service 
providers, and any other provider of interstate telecommunications 
services.
    (3) The term authorized billing agent means a third party hired by a 
telecommunications service provider to perform billing and collection 
services for the telecommunications service provider.
    (4) The term bulk basis means billing name and address information 
for all the local exchange service subscribers of a local exchange 
carrier.
    (5) The term LEC joint use card means a calling card bearing an 
account number assigned by a local exchange carrier, used for the 
services of the local exchange carrier and a designated interexchange 
carrier, and validated by access to data maintained by the local 
exchange carrier.
    (b) No local exchange carrier providing billing name and address 
shall

[[Page 280]]

disclose billing name and address information to any party other than a 
telecommunications service provider or an authorized billing and 
collection agent of a telecommunications service provider.
    (c)(1) No telecommunications service provider or authorized billing 
and collection agent of a telecommunications service provider shall use 
billing name and address information for any purpose other than the 
following:
    (i) Billing customers for using telecommunications services of that 
service provider and collecting amounts due;
    (ii) Any purpose associated with the ``equal access'' requirement of 
United States v. AT&T 552 F.Supp. 131 (D.D.C. 1982); and
    (iii) Verification of service orders of new customers, 
identification of customers who have moved to a new address, fraud 
prevention, and similar nonmarketing purposes.
    (2) In no case shall any telecommunications service provider or 
authorized billing and collection agent of a telecommunications service 
provider disclose the billing name and address information of any 
subscriber to any third party, except that a telecommunications service 
provider may disclose billing name and address information to its 
authorized billing and collection agent.
    (d) [Reserved]
    (e)(1) All local exchange carriers providing billing name and 
address information shall notify their subscribers that:
    (i) The subscriber's billing name and address will be disclosed, 
pursuant to Policies and Rules Concerning Local Exchange Carrier 
Validation and Billing Information for Joint Use Calling Cards, CC 
Docket No. 91-115, FCC 93-254, adopted May 13, 1993, whenever the 
subscriber uses a LEC joint use card to pay for services obtained from 
the telecommunications service provider, and
    (ii) The subscriber's billing name and address will be disclosed, 
pursuant to Policies and Rules Concerning Local Exchange Carrier 
Validation and Billing Information for Joint Use Calling Cards, CC 
Docket No. 91-115, FCC 93-254, adopted May 13, 1993, whenever the 
subscriber accepts a third party or collect call to a telephone station 
provided by the LEC to the subscriber.
    (2) In addition to the notification specified in paragraph (e)(1) of 
this section, all local exchange carriers providing billing name and 
address information shall notify their subscribers with unlisted or 
nonpublished telephone numbers that:
    (i) Customers have a right to request that their BNA not be 
disclosed, and that customers may prevent BNA disclosure for third party 
and collect calls as well as calling card calls;
    (ii) LECs will presume that unlisted and nonpublished end users 
consent to disclosure and use of their BNA if customers do not 
affirmatively request that their BNA not be disclosed; and
    (iii) The presumption in favor of consent for disclosure will begin 
30 days after customers receive notice.
    (3) No local exchange carrier shall disclose the billing name and 
address information associated with any calling card call made by any 
subscriber who has affirmatively withheld consent for disclosure of BNA 
information, or for any third party or collect call charged to any 
subscriber who has affirmatively withheld consent for disclosure of BNA 
information.

[53 FR 36145, July 6, 1993, as amended at 58 FR 65671, Dec. 16, 1993; 61 
FR 8880, Mar. 6, 1996]



                Subpart M--Provision of Payphone Service



Sec. 64.1300  Payphone compensation obligation.

    (a) Except as provided herein, the first facilities-based 
interexchange carrier to which a completed coinless access code or 
subscriber toll-free payphone call is delivered by the local exchange 
carrier shall compensate the payphone service provider for the call at a 
rate agreed upon by the parties by contract.
    (b) The compensation obligation set forth herein shall not apply to 
calls to emergency numbers, calls by hearing disabled persons to a 
telecommunications relay service or local calls for which the caller has 
made the required coin deposit.

[[Page 281]]

    (c) In the absence of an agreement as required by paragraph (a) of 
this section, the carrier is obligated to compensate the payphone 
service provider at a per-call rate of $.24.

[61 FR 52324, Oct. 7, 1996, as amended at 62 FR 58686, Oct. 30, 1997; 64 
FR 13719, Mar. 22, 1999; 66 FR 21106, Apr. 27, 2001]



Sec. 64.1301  Per-payphone compensation.

    (a) Interim access code and subscriber 800 calls. In the absence of 
a negotiated agreement to pay a different amount of compensation, the 
amount of default compensation to be paid to payphone service providers 
for payphone access code calls and payphone subscriber 800 calls is 
$33.892 per payphone per month, for the period starting on November 7, 
1996 and ending on October 6, 1997, except that a payphone service 
provider that is affiliated with a local exchange carrier is not 
eligible to receive payphone compensation prior to April 16, 1997 or, in 
the alternative, the first day following both the termination of 
subsidies and payphone reclassification and transfer, whichever date is 
latest.
    (b) Interim 0+ calls. In the absence of a negotiated agreement to 
pay a different amount of compensation, if a payphone service provider 
was not compensated for 0+ calls originating during the period starting 
on November 7, 1996 and ending on October 6, 1997, an interexchange 
carrier to which the payphone was presubscribed during this same time 
period must compensate the payphone service provider in the default 
amount of $4.2747 per payphone per month, except that a payphone service 
provider that is affiliated with a local exchange carrier is not 
eligible to receive payphone compensation prior to April 16, 1997 or, in 
the alternative, the first day following both the termination of 
subsidies and payphone reclassification and transfer, whichever date is 
latest.
    (c) Interim inmate calls. In the absence of a negotiated agreement 
to pay a different amount of compensation, if a payphone service 
provider providing inmate service was not compensated for calls 
originating at an inmate telephone during the period starting on 
November 7, 1996 and ending on October 6, 1997, an interexchange carrier 
to which the inmate telephone was presubscribed during this same time 
period must compensate the payphone service provider providing inmate 
service at the default rate of $0.229 per inmate call originating during 
the same time period, except that a payphone service provider that is 
affiliated with a local exchange carrier is not eligible to receive 
payphone compensation prior to April 16, 1997 or, in the alternative, 
the first day following both the termination of subsidies and payphone 
reclassification and transfer, whichever date is latest.
    (d) Intermediate access code and subscriber 800 calls. In the 
absence of a negotiated agreement to pay a different amount of 
compensation, the amount of default compensation to be paid to payphone 
service providers for payphone access code calls and payphone subscriber 
800 calls is $33.892 per payphone per month, for any payphone for any 
month in which compensation was not paid on a per-call basis, for the 
period starting on October 7, 1997 and ending on April 20, 1999.
    (e) Post-intermediate access code and subscriber 800 calls. In the 
absence of a negotiated agreement to pay a different amount of 
compensation, the amount of default compensation to be paid to payphone 
service providers for payphone access code calls and payphone subscriber 
800 calls is $33.892 per payphone per month, for any payphone for any 
month in which compensation was not paid on a per-call basis, on or 
after April 21, 1999.

[67 FR 9616, Mar. 4, 2002]

    Effective Date Note: At 67 FR 9616, Mar. 4, 2002, Sec. 64.1301 was 
added, effective Jan. 1, 2003.



Sec. 64.1310  Payphone compensation payment procedures.

    (a) It is the responsibility of the first facilities-based 
interexchange carrier to which a compensable coinless access code or 
subscriber toll-free payphone call is delivered by the local exchange 
carrier to track, or arrange for the tracking of, each such call so that 
it may accurately compute the compensation required by Sec. 64.1300(a). 
The first facilities-based interexchange carrier to which a compensable 
coinless payphone call is delivered by the local exchange carrier must 
also send back

[[Page 282]]

to each payphone service provider at the time dial around compensation 
is due to be paid a statement in computer readable format indicating the 
toll-free and access code numbers that the LEC has delivered to the 
carrier, and the volume of calls for each toll-free and access number 
each carrier has received from each of that payphone service provider's 
payphones, unless the payphone service provider agrees to other 
arrangements.
    (b) The first facilities-based interexchange carrier to which a 
compensable coinless payphone call is delivered by the local exchange 
carrier may obtain reimbursement from its reseller and debit card 
customers for the compensation amounts paid to payphone service 
providers for calls carried on their account and for the cost of 
tracking compensable calls. Facilities-based carriers and resellers may 
establish or continue any other arrangements that they have with 
payphone service providers for the billing and collection of 
compensation for calls subject to Sec. 64.1300(a), if the involved 
payphone service providers so agree.
    (c) Local Exchange Carriers must provide to carriers required to pay 
compensation pursuant to Section 64.1300(a) a list of payphone numbers 
in their service areas. The list must be provided on a quarterly basis. 
Local Exchange Carriers must verify disputed numbers in a timely manner, 
and must maintain verification data for 18 months after close of the 
compensation period.
    (d) Local Exchange Carriers must respond to all carrier requests for 
payphone number verification in connection with the compensation 
requirements herein, even if such verification is a negative response.
    (e) A payphone service provider that seeks compensation for 
payphones that are not included on the Local Exchange Carrier's list 
satisfies its obligation to provide alternative reasonable verification 
to a payor carrier if it provides to that carrier:
    (1) A notarized affidavit attesting that each of the payphones for 
which the payphone service provider seeks compensation is a payphone 
that was in working order as of the last day of the compensation period; 
and
    (2) Corroborating evidence that each such payphone is owned by the 
payphone service provider seeking compensation and was in working order 
on the last day of the compensation period. Corroborating evidence shall 
include, at a minimum, the telephone bill for the last month of the 
billing quarter indicating use of a line screening service.

[61 FR 52324, Oct. 7, 1996, as amended at 66 FR 21106, Apr. 27, 2001]



Sec. 64.1320   Payphone compensation verification and reports.

    (a) Carriers subject to payment of compensation pursuant to Section 
64.1300(a) shall conduct an annual verification of calls routed to them 
that are subject to such compensation and file a report with the Chief, 
Common Carrier Bureau within 90 days of the end of the calendar year, 
provided, however, that such verification and report shall not be 
required for calls received after December 31, 1998.
    (b) The annual verification required in this section shall list the 
total amount of compensation paid to payphone service providers for 
intrastate, interstate and international calls, the number of 
compensable calls received by the carrier and the number of payees.

[61 FR 52324, Oct. 7, 1996]



Sec. 64.1330  State review of payphone entry and exit regulations and public interest payphones.

    (a) Each state must review and remove any of its regulations 
applicable to payphones and payphone service providers that impose 
market entry or exit requirements.
    (b) Each state must ensure that access to dialtone, emergency calls, 
and telecommunications relay service calls for the hearing disabled is 
available from all payphones at no charge to the caller.
    (c) Each state must review its rules and policies to determine 
whether it has provided for public interest payphones consistent with 
applicable Commission guidelines, evaluate whether it needs to take 
measures to ensure that such payphones will continue to exist in light 
of the Commission's implementation of Section 276 of

[[Page 283]]

the Communications Act, and administer and fund such programs so that 
such payphones are supported fairly and equitably. This review must be 
completed by September 20, 1998.

[61 FR 52323, Oct. 7, 1996]



Sec. 64.1340  Right to negotiate.

    Unless prohibited by Commission order, payphone service providers 
have the right to negotiate with the location provider on the location 
provider's selecting and contracting with, and, subject to the terms of 
any agreement with the location provider, to select and contract with, 
the carriers that carry interLATA and intraLATA calls from their 
payphones.

 [61 FR 52323, Oct. 7, 1996]



                   Subpart N--Expanded Interconnection



Sec. 64.1401  Expanded interconnection.

    (a) Every local exchange carrier 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 of this chapter, shall offer expanded 
interconnection for interstate special access services at their central 
offices that are classified as end offices or serving wire centers, and 
at other rating points used for interstate special access.
    (b) The local exchange carriers specified in paragraph (a) of this 
section shall offer expanded interconnection for interstate switched 
transport services:
    (1) In their central offices that are classified as end offices or 
serving wire centers, as well as at all tandem offices housed in 
buildings containing such carriers' end offices or serving wire centers 
for which interstate switched transport expanded interconnection has 
been tariffed;
    (2) Upon bona fide request, in tandem offices housed in buildings 
not containing such carriers' end offices or serving wire centers, or in 
buildings containing the carriers' end offices or serving wire centers 
for which interstate switched transport expanded interconnection has not 
been tariffed; and
    (3) Upon bona fide request, at remote nodes/switches that serve as 
rating points for interstate switched transport and that are capable of 
routing outgoing interexchange access traffic to interconnectors and in 
which interconnectors can route terminating traffic to such carriers. No 
such carrier is required to enhance remote nodes/switches or to build 
additional space to accommodate interstate switched transport expanded 
interconnection at these locations.
    (c) The local exchange carriers specified in paragraph (a) of this 
section shall offer expanded interconnection for interstate special 
access and switched transport services through virtual collocation, 
except that they may offer physical collocation, instead of virtual 
collocation, in specific central offices, as a service subject to non-
streamlined communications common carrier regulation under Title II of 
the Communications Act (47 U.S.C. 201-228).
    (d) For the purposes of this subpart, physical collocation means an 
offering that enables interconnectors:
    (1) To place their own equipment needed to terminate basic 
transmission facilities, including optical terminating equipment and 
multiplexers, within or upon the local exchange carrier's central office 
buildings;
    (2) To use such equipment to connect interconnectors' fiber optic 
systems or microwave radio transmission facilities (where reasonably 
feasible) with the local exchange carrier's equipment and facilities 
used to provide interstate special access services;
    (3) To enter the local exchange carrier's central office buildings, 
subject to reasonable terms and conditions, to install, maintain, and 
repair the equipment described in paragraph (d)(1) of this section; and
    (4) To obtain reasonable amounts of space in central offices for the 
equipment described in paragraph (d)(1) of this section, allocated on a 
first-come, first-served basis.
    (e) For purposes of this subpart, virtual collocation means an 
offering that enables interconnectors:
    (1) To designate or specify equipment needed to terminate basic 
transmission

[[Page 284]]

facilities, including optical terminating equipment and multiplexers, to 
be located within or upon the local exchange carrier's buildings, and 
dedicated to such interconnectors' use,
    (2) To use such equipment to connect interconnectors' fiber optic 
systems or microwave radio transmission facilities (where reasonably 
feasible) with the local exchange carrier's equipment and facilities 
used to provide interstate special and switched access services, and
    (3) To monitor and control their communications channels terminating 
in such equipment.
    (f) Under both physical collocation offering and virtual collocation 
offerings for expanded interconnection of fiber optic facilities, local 
exchange carriers shall provide:
    (1) An interconnection point or points at which the fiber optic 
cable carrying an interconnectors' circuits can enter each local 
exchange carrier location, provided that the local exchange carrier 
shall designate interconnection points as close as reasonably possible 
to each location; and
    (2) At least two such interconnection points at any local exchange 
carrier location at which there are at least two entry points for the 
local exchange carrier's cable facilities, and space is available for 
new facilities in at least two of those entry points.
    (g) The local exchange carriers specified in paragraph (a) of this 
section shall offer signalling for tandem switching, as defined in 
Sec. 69.2(vv) of this chapter, at central offices that are classified as 
equal office end offices or serving wire centers, or at signal transfer 
points if such information is offered via common channel signalling.

[57 FR 54331, Nov. 18, 1992, as amended at 58 FR 48762, Sept. 17, 1993; 
59 FR 32930, June 27, 1994; 59 FR 38930, Aug. 1, 1994]



Sec. 64.1402  Rights and responsibilities of interconnectors.

    (a) For the purposes of this subpart, an interconnector means a 
party taking expanded interconnection offerings. Any party shall be 
eligible to be an interconnector.
    (b) Interconnectors shall have the right, under expanded 
interconnection, to interconnect their fiber optic systems and, where 
reasonably feasible, their microwave transmission facilities.
    (c) Interconnectors shall not be allowed to use interstate special 
access expanded interconnection offerings to connect their transmission 
facilities with the local exchange carrier's interstate switched 
services until that local exchange carrier's tariffs implementing 
expanded interconnection for switched transport have become effective.

[57 FR 54331, Nov. 18, 1992, as amended at 61 FR 43160, Aug. 21, 1996]



    Subpart O--Interstate Pay-Per-Call and Other Information Services

    Source: 58 FR 44773, Aug. 25, 1993, unless otherwise noted.



Sec. 64.1501  Definitions.

    For purposes of this subpart, the following definitions shall apply:
    (a) Pay-per-call service means any service:
    (1) In which any person provides or purports to provide:
    (i) Audio information or audio entertainment produced or packaged by 
such person;
    (ii) Access to simultaneous voice conversation services; or
    (iii) Any service, including the provision of a product, the charges 
for which are assessed on the basis of the completion of the call;
    (2) For which the caller pays a per-call or per-time-interval charge 
that is greater than, or in addition to, the charge for transmission of 
the call; and
    (3) Which is accessed through use of a 900 number;
    (4) Provided, however, such term does not include directory services 
provided by a common carrier or its affiliate or by a local exchange 
carrier or its affiliate, or any service for which users are assessed 
charges only after entering into a presubscription or comparable 
arrangement with the provider of such service.
    (b) Presubscription or comparable arrangement means a contractual 
agreement in which:

[[Page 285]]

    (1) The service provider clearly and conspicuously discloses to the 
consumer all material terms and conditions associated with the use of 
the service, including the service provider's name and address, a 
business telephone number which the consumer may use to obtain 
additional information or to register a complaint, and the rates for the 
service;
    (2) The service provider agrees to notify the consumer of any future 
rate changes;
    (3) The consumer agrees to use the service on the terms and 
conditions disclosed by the service provider; and
    (4) The service provider requires the use of an identification 
number or other means to prevent unauthorized access to the service by 
nonsubscribers;
    (5) Provided, however, that disclosure of a credit, prepaid account, 
debit, charge, or calling card number, along with authorization to bill 
that number, made during the course of a call to an information service 
shall constitute a presubscription or comparable arrangement if an 
introductory message containing the information specified in 
Sec. 64.1504(c)(2) is provided prior to, and independent of, assessment 
of any charges. No other action taken by a consumer during the course of 
a call to an information service, for which charges are assessed, can 
create a presubscription or comparable arrangement.
    (6) Provided, that a presubscription arrangement to obtain 
information services provided by means of a toll-free number shall 
conform to the requirements of Sec. 64.1504(c).
    (c) Calling card means an identifying number or code unique to the 
individual, that is issued to the individual by a common carrier and 
enables the individual to be charged by means of a phone bill for 
charges incurred independent of where the call originates.

[61 FR 39087, July 26, 1996]



Sec. 64.1502  Limitations on the provision of pay-per-call services.

    Any common carrier assigning a telephone number to a provider of 
interstate pay-per-call service shall require, by contract or tariff, 
that such provider comply with the provisions of this subpart and of 
titles II and III of the Telephone Disclosure and Dispute Resolution Act 
(Pub. L. No. 102-556) (TDDRA) and the regulations prescribed by the 
Federal Trade Commission pursuant to those titles.



Sec. 64.1503  Termination of pay-per-call and other information programs.

    (a) Any common carrier assigning a telephone number to a provider of 
interstate pay-per-call service shall specify by contract or tariff that 
pay-per-call programs not in compliance with Sec. 64.1502 shall be 
terminated following written notice to the information provider. The 
information provider shall be afforded a period of no less than seven 
and no more than 14 days during which a program may be brought into 
compliance. Programs not in compliance at the expiration of such period 
shall be terminated immediately.
    (b) Any common carrier providing transmission or billing and 
collection services to a provider of interstate information service 
through any 800 telephone number, or other telephone number advertised 
or widely understood to be toll-free, shall promptly investigate any 
complaint that such service is not provided in accordance with 
Sec. 64.1504 or Sec. 64.1510(c), and, if the carrier reasonably 
determines that the complaint is valid, may terminate the provision of 
service to an information provider unless the provider supplies evidence 
of a written agreement that meets the requirements of this 
Sec. 64.1504(c)(1).

[61 FR 39087, July 26, 1996]



Sec. 64.1504  Restrictions on the use of toll-free numbers.

    A common carrier shall prohibit by tariff or contract the use of any 
800 telephone number, or other telephone number advertised or widely 
understood to be toll-free, in a manner that would result in:
    (a) The calling party or the subscriber to the originating line 
being assessed, by virtue of completing the call, a charge for a call;
    (b) The calling party being connected to a pay-per-call service;
    (c) The calling party being charged for information conveyed during 
the call unless:

[[Page 286]]

    (1) The calling party has a written agreement (including an 
agreement transmitted through electronic medium) that specifies the 
material terms and conditions under which the information is offered and 
includes:
    (i) The rate at which charges are assessed for the information;
    (ii) The information provider's name;
    (iii) The information provider's business address;
    (iv) The information provider's regular business telephone number;
    (v) The information provider's agreement to notify the subscriber at 
least one billing cycle in advance of all future changes in the rates 
charged for the information;
    (vi) The subscriber's choice of payment method, which may be by 
direct remit, debit, prepaid account, phone bill, or credit or calling 
card and, if a subscriber elects to pay by means of phone bill, a clear 
explanation that the subscriber will be assessed for calls made to the 
information service from the subscriber's phone line;
    (vii) A unique personal identification number or other subscriber-
specific identifier that must be used to obtain access to the 
information service and instructions on its use, and, in addition, 
assures that any charges for services accessed by use of the 
subscriber's personal identification number or subscriber-specific 
identifier be assessed to subscriber's source of payment elected 
pursuant to paragraph (c)(1)(vi) of this section; or
    (2) The calling party is charged for the information by means of a 
credit, prepaid, debit, charge, or calling card and the information 
service provider includes in response to each call an introductory 
message that:
    (i) Clearly states that there is a charge for the call;
    (ii) Clearly states the service's total cost per minute and any 
other fees for the service or for any service to which the caller may be 
transferred;
    (iii) Explains that the charges must be billed on either a credit, 
prepaid, debit, charge, or calling card;
    (iv) Asks the caller for the card number;
    (v) Clearly states that charges for the call begin at the end of the 
introductory message; and
    (vi) Clearly states that the caller can hang at or before the end of 
the introductory message without incurring any charge whatsoever.
    (d) The calling party being called back collect for the provision of 
audio or data information services, simultaneous voice conversation 
services, or products; and
    (e) The calling party being assessed by virtue of the caller being 
asked to connect or otherwise transfer to a pay-per-call service, a 
charge for the call.
    (f) Provided, however, that:
    (1) Notwithstanding paragraph (c)(1) of this section, a written 
agreement that meets the requirements of that paragraph is not required 
for:
    (i) Calls utilizing telecommunications devices for the deaf;
    (ii) Directory services provided by a common carrier or its 
affiliate or by a local exchange carrier or its affiliate; or
    (iii) Any purchase of goods or of services that are not information 
services.
    (2) The requirements of paragraph (c)(2) of this section shall not 
apply to calls from repeat callers using a bypass mechanism to avoid 
listening to the introductory message: Provided, That information 
providers shall disable such a bypass mechanism after the institution of 
any price increase for a period of time determined to be sufficient by 
the Federal Trade Commission to give callers adequate and sufficient 
notice of a price increase.

[61 FR 39087, July 26, 1996]



Sec. 64.1505  Restrictions on collect telephone calls.

    (a) No common carrier shall provide interstate transmission or 
billing and collection services to an entity offering any service within 
the scope of Sec. 64.1501(a)(1) that is billed to a subscriber on a 
collect basis at a per-call or per-time-interval charge that is greater 
than, or in addition to, the charge for transmission of the call.
    (b) No common carrier shall provide interstate transmission services 
for any collect information services billed to a subscriber at a 
tariffed rate unless the called party has taken affirmative action 
clearly indicating that it accepts the charges for the collect service.

[[Page 287]]



Sec. 64.1506  Number designation.

    Any interstate service described in Sec. 64.1501(a)(1)-(2), and not 
subject to the exclusions contained in Sec. 64.1501(a)(4), shall be 
offered only through telephone numbers beginning with a 900 service 
access code.

[59 FR 46770, Sept. 12, 1994]



Sec. 64.1507  Prohibition on disconnection or interruption of service for failure to remit pay-per-call and similar service charges.

    No common carrier shall disconnect or interrupt in any manner, or 
order the disconnection or interruption of, a telephone subscriber's 
local exchange or long distance telephone service as a result of that 
subscriber's failure to pay:
    (a) Charges for interstate pay-per-call service;
    (b) Charges for interstate information services provided pursuant to 
a presubscription or comparable arrangement; or
    (c) Charges for interstate information services provided on a 
collect basis which have been disputed by the subscriber.

[58 FR 44773, Aug. 25, 1993, as amended at 59 FR 46770, Sept. 12, 1994]



Sec. 64.1508  Blocking access to 900 service.

    (a) Local exchange carriers must offer to their subscribers, where 
technically feasible, an option to block access to services offered on 
the 900 service access code. Blocking is to be offered at no charge, on 
a one-time basis, to:
    (1) All telephone subscribers during the period from November 1, 
1993 through December 31, 1993; and
    (2) Any subscriber who subscribes to a new telephone number for a 
period of 60 days after the new number is effective.
    (b) For blocking requests not within the one-time option or outside 
the time frames specified in paragraph (a) of this section, and for 
unblocking requests, local exchange carriers may charge a reasonable 
one-time fee. Requests by subscribers to remove 900 services blocking 
must be in writing.
    (c) The terms and conditions under which subscribers may obtain 900 
services blocking are to be included in tariffs filed with this 
Commission.



Sec. 64.1509  Disclosure and dissemination of pay-per-call information.

    (a) Any common carrier assigning a telephone number to a provider of 
interstate pay-per-call services shall make readily available, at no 
charge, to Federal and State agencies and all other interested persons:
    (1) A list of the telephone numbers for each of the pay-per-call 
services it carries;
    (2) A short description of each such service;
    (3) A statement of the total cost or the cost per minute and any 
other fees for each such service; and
    (4) A statement of the pay-per-call service provider's name, 
business address, and business telephone number.
    (b) Any common carrier assigning a telephone number to a provider of 
interstate pay-per-call services and offering billing and collection 
services to such provider shall:
    (1) Establish a local or toll-free telephone number to answer 
questions and provide information on subscribers' rights and obligations 
with regard to their use of pay-per-call services and to provide to 
callers the name and mailing address of any provider of pay-per-call 
services offered by that carrier; and
    (2) Provide to all its telephone subscribers, either directly or 
through contract with any local exchange carrier providing billing and 
collection services to that carrier, a disclosure statement setting 
forth all rights and obligations of the subscriber and the carrier with 
respect to the use and payment of pay-per-call services. Such statement 
must include the prohibition against disconnection of basic 
communications services for failure to pay pay-per-call charges 
established by Sec. 64.1507, the right of a subscriber to obtain 
blocking in accordance with Sec. 64.1508, the right of a subscriber not 
to be billed for pay-per-call services not offered in compliance with 
federal laws and regulations established by Sec. 64.1510(a)(1), and the 
possibility that a subscriber's access to 900 services may

[[Page 288]]

be involuntarily blocked pursuant to Sec. 64.1512 for failure to pay 
legitimate pay-per-call charges. Disclosure statements must be forwarded 
to:
    (i) All telephone subscribers no later than 60 days after these 
regulations take effect;
    (ii) All new telephone subscribers no later than 60 days after 
service is established;
    (iii) All telephone subscribers requesting service at a new location 
no later than 60 days after service is established; and
    (iv) Thereafter, to all subscribers at least once per calendar year, 
at intervals of not less than 6 months nor more than 18 months.

[58 FR 44773, Aug. 25, 1993, as amended at 61 FR 55582, Oct. 28, 1996]



Sec. 64.1510  Billing and collection of pay-per-call and similar service charges.

    (a) Any common carrier assigning a telephone number to a provider of 
interstate pay-per-call services and offering billing and collection 
services to such provider shall:
    (1) Ensure that a subscriber is not billed for interstate pay-per-
call services that such carrier knows or reasonably should know were 
provided in violation of the regulations set forth in this subpart or 
prescribed by the Federal Trade Commission pursuant to titles II or III 
of the TDDRA or any other federal law;
    (2) In any billing to telephone subscribers that includes charges 
for any interstate pay-per-call service:
    (i) Include a statement indicating that:
    (A) Such charges are for non-communications services;
    (B) Neither local nor long distances services can be disconnected 
for non-payment although an information provider may employ private 
entities to seek to collect such charges;
    (C) 900 number blocking is available upon request; and
    (D) Access to pay-per-call services may be involuntarily blocked for 
failure to pay legitimate charges;
    (ii) Display any charges for pay-per-call services in a part of the 
bill that is identified as not being related to local and long distance 
telephone charges;
    (iii) Specify, for each pay-per-call charge made, the type of 
service, the amount of the charge, and the date, time, and, for calls 
billed on a time-sensitive basis, the duration of the call; and
    (iv) Identify the local or toll-free number established in 
accordance with Sec. 64.1509(b)(1).
    (b) Any common carrier offering billing and collection services to 
an entity providing interstate information services on a collect basis 
shall, to the extent possible, display the billing information in the 
manner described in paragraphs (a)(2)(i), (A), (B), (D) and (a)(2)(ii) 
of this section.
    (c) If a subscriber elects, pursuant to Sec. 64.1504(c)(1)(vi), to 
pay by means of a phone bill for any information service provided by 
through any 800 telephone number, or other telephone number advertised 
or widely understood to be toll-free, the phone bill shall:
    (1) Include, in prominent type, the following disclaimer: ``Common 
carriers may not disconnect local or long distance telephone service for 
failure to pay disputed charges for information services;'' and
    (2) Clearly list the 800 or other toll-free number dialed.

[58 FR 44773, Aug. 25, 1993, as amended at 59 FR 46771, Sept. 12, 1994; 
61 FR 39088, July 26, 1996]



Sec. 64.1511  Forgiveness of charges and refunds.

    (a) Any carrier assigning a telephone number to a provider of 
interstate pay-per-call services or providing transmission for 
interstate information services provided pursuant to a presubscription 
or comparable arrangement or on a collect basis, and providing billing 
and collection for such services, shall establish procedures for the 
handling of subscriber complaints regarding charges for those services. 
A billing carrier is afforded discretion to set standards for 
determining when a subscriber's complaint warrants forgiveness, refund 
or credit of interstate pay-per-call or information services charges 
provided that such charges must be forgiven, refunded, or credited when 
a subscriber has complained about such charges and either this

[[Page 289]]

Commission, the Federal Trade Commission, or a court of competent 
jurisdiction has found or the carrier has determined, upon 
investigation, that the service has been offered in violation of federal 
law or the regulations that are either set forth in this subpart or 
prescribed by the Federal Trade Commission pursuant to titles II or III 
of the TDDRA. Carriers shall observe the record retention requirements 
set forth in Sec. 42.6 of this chapter except that relevant records 
shall be retained by carriers beyond the requirements of part 42 of this 
chapter when a complaint is pending at the time the specified retention 
period expires.
    (b) Any carrier assigning a telephone number to a provider of 
interstate pay-per-call services but not providing billing and 
collection services for such services, shall, by tariff or contract, 
require that the provider and/or its billing and collection agents have 
in place procedures whereby, upon complaint, pay-per-call charges may be 
forgiven, refunded, or credited, provided that such charges must be 
forgiven, refunded, or credited when a subscriber has complained about 
such charges and either this Commission, the Federal Trade Commission, 
or a court of competent jurisdiction has found or the carrier has 
determined, upon investigation, that the service has been offered in 
violation of federal law or the regulations that are either set forth in 
this subpart or prescribed by the Federal Trade Commission pursuant to 
titles II or III of the TDDRA.

[58 FR 44773, Aug. 25, 1993, as amended at 59 FR 46771, Sept. 12, 1994]



Sec. 64.1512  Involuntary blocking of pay-per-call services.

    Nothing in this subpart shall preclude a common carrier or 
information provider from blocking or ordering the blocking of its 
interstate pay-per-call programs from numbers assigned to subscribers 
who have incurred, but not paid, legitimate pay-per-call charges, except 
that a subscriber who has filed a complaint regarding a particular pay-
per-call program pursuant to procedures established by the Federal Trade 
Commission under title III of the TDDRA shall not be involuntarily 
blocked from access to that program while such a complaint is pending. 
This restriction is not intended to preclude involuntary blocking when a 
carrier or IP has decided in one instance to sustain charges against a 
subscriber but that subscriber files additional separate complaints.



Sec. 64.1513  Verification of charitable status.

    Any common carrier assigning a telephone number to a provider of 
interstate pay-per-call services that the carrier knows or reasonably 
should know is engaged in soliciting charitable contributions shall 
obtain verification that the entity or individual for whom contributions 
are solicited has been granted tax exempt status by the Internal Revenue 
Service.



Sec. 64.1514  Generation of signalling tones.

    No common carrier shall assign a telephone number for any pay-per-
call service that employs broadcast advertising which generates the 
audible tones necessary to complete a call to a pay-per-call service.



Sec. 64.1515  Recovery of costs.

    No common carrier shall recover its cost of complying with the 
provisions of this subpart from local or long distance ratepayers.



           Subpart P--Calling Party Telephone Number; Privacy

    Source: 59 FR 18319, Apr. 18, 1994, unless otherwise noted.



Sec. 64.1600  Definitions.

    (a) Aggregate information. The term ``aggregate information'' means 
collective data that relate to a group or category of services or 
customers, from which individual customer identities or characteristics 
have been removed.
    (b) ANI. The term ``ANI'' (automatic number identification) refers 
to the delivery of the calling party's billing number by a local 
exchange carrier to any interconnecting carrier for billing or routing 
purposes, and to the subsequent delivery of such number to end users.
    (c) Calling party number. The term ``Calling Party Number'' refers 
to the

[[Page 290]]

subscriber line number or the directory number contained in the calling 
party number parameter of the call set-up message associated with an 
interstate call on a Signaling System 7 network.
    (d) Charge number. The term ``charge number'' refers to the delivery 
of the calling party's billing number in a Signaling System 7 
environment by a local exchange carrier to any interconnecting carrier 
for billing or routing purposes, and to the subsequent delivery of such 
number to end users.
    (e) Privacy indicator. The term ``Privacy Indicator'' refers to 
information, contained in the calling party number parameter of the call 
set-up message associated with an interstate call on an Signaling System 
7 network, that indicates whether the calling party authorizes 
presentation of the calling party number to the called party.
    (f) Signaling System 7. The term ``Signaling System 7'' (SS7) refers 
to a carrier to carrier out-of-band signaling network used for call 
routing, billing and management.

[60 FR 29490, June 5, 1995]



Sec. 64.1601  Delivery requirements and privacy restrictions.

    (a) Delivery. Except as provided in paragraph (d) of this section, 
common carriers using Signaling System 7 and offering or subscribing to 
any service based on Signaling System 7 functionality are required to 
transmit the calling party number (CPN) associated with an interstate 
call to interconnecting carriers.
    (b) Privacy. Except as provided in paragraph (d) of this section, 
originating carriers using Signaling System 7 and offering or 
subscribing to any service based on Signaling System 7 functionality 
will recognize *67 dialed as the first three digits of a call (or 1167 
for rotary or pulse dialing phones) as a caller's request that the CPN 
not be passed on an interstate call. Such carriers providing line 
blocking services will recognize *82 as a caller's request that the CPN 
be passed on an interstate call. No common carrier subscribing to or 
offering any service that delivers CPN may override the privacy 
indicator associated with an interstate call. Carriers must arrange 
their CPN-based services, and billing practices, in such a manner that 
when a caller requests that the CPN not be passed, a carrier may not 
reveal that caller's number or name, nor may the carrier use the number 
or name to allow the called party to contact the calling party. The 
terminating carrier must act in accordance with the privacy indicator 
unless the call is made to a called party that subscribes to an ANI or 
charge number based service and the call is paid for by the called 
party.
    (c) Charges. No common carrier subscribing to or offering any 
service that delivers calling party number may
    (1) Impose on the calling party charges associated with per call 
blocking of the calling party's telephone number, or
    (2) Impose charges upon connecting carriers for the delivery of the 
calling party number parameter or its associated privacy indicator.
    (d) Exemptions. Section 64.1601(a) and (b) shall not apply when:
    (1) A call originates from a payphone.
    (2) A local exchange carrier with Signaling System 7 capability does 
not have the software to provide *67 or *82 functionalities. Such 
carriers are prohibited from passing CPN.
    (3) A Private Branch Exchange or Centrex system does not pass end 
user CPN. Centrex systems that rely on *6 or *8 for a function other 
than CPN blocking or unblocking, respectively, are also exempt if they 
employ alternative means of blocking or unblocking.
    (4) CPN delivery--
    (i) Is used solely in connection with calls within the same limited 
system, including (but not limited to) a Centrex system, virtual private 
network, or Private Branch Exchange;
    (ii) Is used on a public agency's emergency telephone line or in 
conjunction with 911 emergency services, or on any entity's emergency 
assistance poison control telephone line; or
    (iii) Is provided in connection with legally authorized call tracing 
or trapping procedures specifically requested by a law enforcement 
agency.

[60 FR 29490, June 5, 1995; 60 FR 54449, Oct. 24, 1995, as amended at 62 
FR 34015, June 24, 1997]

[[Page 291]]



Sec. 64.1602  Restrictions on use and sale of telephone subscriber information provided pursuant to automatic number identification or charge number services.

    (a) Any common carrier providing Automatic Number Identification or 
charge number services on interstate calls to any person shall provide 
such services under a contract or tariff containing telephone subscriber 
information requirements that comply with this subpart. Such 
requirements shall:
    (1) Permit such person to use the telephone number and billing 
information for billing and collection, routing, screening, and 
completion of the originating telephone subscriber's call or 
transaction, or for services directly related to the originating 
telephone subscriber's call or transaction;
    (2) Prohibit such person from reusing or selling the telephone 
number or billing information without first
    (i) Notifying the originating telephone subscriber and,
    (ii) Obtaining the affirmative consent of such subscriber for such 
reuse or sale; and,
    (3) Prohibit such person from disclosing, except as permitted by 
paragraphs (a) (1) and (2) of this section, any information derived from 
the automatic number identification or charge number service for any 
purpose other than
    (i) Performing the services or transactions that are the subject of 
the originating telephone subscriber's call,
    (ii) Ensuring network performance security, and the effectiveness of 
call delivery,
    (iii) Compiling, using, and disclosing aggregate information, and
    (iv) Complying with applicable law or legal process.
    (b) The requirements imposed under paragraph (a) of the section 
shall not prevent a person to whom automatic number identification or 
charge number services are provided from using
    (1) The telephone number and billing information provided pursuant 
to such service, and
    (2) Any information derived from the automatic number identification 
or charge number service, or from the analysis of the characteristics of 
a telecommunications transmission, to offer a product or service that is 
directly related to the products or services previously acquired by that 
customer from such person. Use of such information is subject to the 
requirements of 47 CFR 64.1200 and 64.1504(c).

[60 FR 29490, June 5, 1995]



Sec. 64.1603  Customer notification.

    Any common carrier participating in the offering of services 
providing calling party number, ANI, or charge number on interstate 
calls must notify its subscribers, individually or in conjunction with 
other carriers, that their telephone numbers may be identified to a 
called party. Such notification must be made not later than December 1, 
1995, and at such times thereafter as to ensure notice to subscribers. 
The notification must be effective in informing subscribers how to 
maintain privacy by dialing *67 (or 1167 for rotary or pulse-dialing 
phones) on interstate calls. The notice shall inform subscribers whether 
dialing *82 (or 1182 for rotary or pulse-dialing phones) on interstate 
calls is necessary to present calling party number to called parties. 
For ANI or charge number services for which such privacy is not 
provided, the notification shall inform subscribers of the restrictions 
on the reuse or sale of subscriber information.

[60 FR 29491, June 5, 1995; 60 FR 54449, Oct. 24, 1995]



Sec. 64.1604  Effective date.

    The provisions of Secs. 64.1600 and 64.1602 are effective April 12, 
1995. The provisions of Secs. 64.1601 and 64.1603 are effective December 
1, 1995, except Secs. 64.1601 and 64.1603 do not apply to public 
payphones and partylines until January 1, 1997.

[60 FR 29491, June 5, 1995; 60 FR 54449, Oct. 24, 1995]



Subpart Q--Implementation of Section 273(d)(5) of the Communiations Act: 
            Dispute Resolution Regarding Equipment Standards

    Source: 61 FR 24903, May 17, 1996, unless otherwise noted.

[[Page 292]]



Sec. 64.1700  Purpose and scope.

    The purpose of this subpart is to implement the Telecommunications 
Act of 1996 which amended the Communications Act by creating section 
273(d)(5), 47 U.S.C. 273(d)(5). Section 273(d) sets forth procedures to 
be followed by non-accredited standards development organizations when 
these organizations set industry-wide standards and generic requirements 
for telecommunications equipment or customer premises equipment. The 
statutory procedures allow outside parties to fund and participate in 
setting the organization's standards and require the organization and 
the parties to develop a process for resolving any technical disputes. 
In cases where all parties cannot agree to a mutually satisfactory 
dispute resolution process, section 273(d)(5) requires the Commission to 
prescribe a dispute resolution process.



Sec. 64.1701  Definitions.

    For purposes of this subpart, the terms accredited standards 
development organization, funding party, generic requirement, and 
industry-wide have the same meaning as found in 47 U.S.C. 273.



Sec. 64.1702  Procedures.

    If a non-accredited standards development organization (NASDO) and 
the funding parties are unable to agree unanimously on a dispute 
resolution process prior to publishing a text for comment pursuant to 47 
U.S.C. 273(d)(4)(A)(v), a funding party may use the default dispute 
resolution process set forth in section 64.1703.



Sec. 64.1703  Dispute resolution default process.

    (a) Tri-Partite Panel. Technical disputes governed by this section 
shall be resolved in accordance with the recommendation of a three-
person panel, subject to a vote of the funding parties in accordance 
with paragraph (b) of this section. Persons who participated in the 
generic requirements or standards development process are eligible to 
serve on the panel. The panel shall be selected and operate as follows:
    (1) Within two (2) days of the filing of a dispute with the NASDO 
invoking the dispute resolution default process, both the funding party 
seeking dispute resolution and the NASDO shall select a representative 
to sit on the panel;
    (2) Within four (4) days of their selection, the two panelists shall 
select a neutral third panel member to create a tri-partite panel;
    (3) The tri-partite panel shall, at a minimum, review the proposed 
text of the NASDO and any explanatory material provided to the funding 
parties by the NASDO, the comments and any alternative text provided by 
the funding party seeking dispute resolution, any relevant standards 
which have been established or which are under development by an 
accredited-standards development organization, and any comments 
submitted by other funding parties;
    (4) Any party in interest submitting information to the panel for 
consideration (including the NASDO, the party seeking dispute resolution 
and the other funding parties) shall be asked by the panel whether there 
is knowledge of patents, the use of which may be essential to the 
standard or generic requirement being considered. The fact that the 
question was asked along with any affirmative responses shall be 
recorded, and considered, in the panel's recommendation; and
    (5) The tri-partite panel shall, within fifteen (15) days after 
being established, decide by a majority vote, the issue or issues raised 
by the party seeking dispute resolution and produce a report of their 
decision to the funding parties. The tri-partite panel must adopt one of 
the five options listed below:
    (i) The NASDO's proposal on the issue under consideration;
    (ii) The position of the party seeking dispute resolution on the 
issue under consideration;
    (iii) A standard developed by an accredited standards development 
organization that addresses the issue under consideration;
    (iv) A finding that the issue is not ripe for decision due to 
insufficient technical evidence to support the soundness of any one 
proposal over any other proposal; or
    (v) Any other resolution that is consistent with the standard 
described in section 64.1703(a)(6).

[[Page 293]]

    (6) The tri-partite panel must choose, from the five options 
outlined above, the option that they believe provides the most 
technically sound solution and base its recommendation upon the 
substantive evidence presented to the panel. The panel is not precluded 
from taking into account complexity of implementation and other 
practical considerations in deciding which option is most technically 
sound. Neither of the disputants (i.e., the NASDO and the funding party 
which invokes the dispute resolution process) will be permitted to 
participate in any decision to reject the mediation panel's 
recommendation.
    (b) The tri-partite panel's recommendation(s) must be included in 
the final industry-wide standard or industry-wide generic requirement, 
unless three-fourths of the funding parties who vote decide within 
thirty (30) days of the filing of the dispute to reject the 
recommendation and accept one of the options specified in paragraphs 
(a)(5) (i) through (v) of this section. Each funding party shall have 
one vote.
    (c) All costs sustained by the tri-partite panel will be 
incorporated into the cost of producing the industry-wide standard or 
industry-wide generic requirement.



Sec. 64.1704  Frivolous disputes/penalties.

    (a) No person shall willfully refer a dispute to the dispute 
resolution process under this subpart unless to the best of his 
knowledge, information and belief there is good ground to support the 
dispute and the dispute is not interposed for delay.
    (b) Any person who fails to comply with the requirements in 
paragraph (a) of this section, may be subject to forfeiture pursuant to 
section 503(b) of the Communications Act, 47 U.S.C. 503(b).



        Subpart R--Geographic Rate Averaging and Rate Integration

    Authority: 47 U.S.C. Secs. 151, 154(i), 201-205, 214(e), 215 and 
254(g).



Sec. 64.1801  Geographic rate averaging and rate integration.

    (a) The rates charged by providers of interexchange 
telecommunications services to subscribers in rural and high-cost areas 
shall be no higher than the rates charged by each such provider to its 
subscribers in urban areas.
    (b) A provider of interstate interexchange telecommunications 
services shall provide such services to its subscribers in each U.S. 
state at rates no higher than the rates charged to its subscribers in 
any other state.

[61 FR 42564, Aug. 16, 1996]



 Subpart S--Nondominant Interexchange Carrier Certifications Regarding 
       Geographic Rate Averaging and Rate Integration Requirements



Sec. 64.1900  Nondominant interexchange carrier certifications regarding geographic rate averaging and rate integration requirements.

    (a) A nondominant provider of interexchange telecommunications 
services, which provides detariffed interstate, domestic, interexchange 
services, shall file with the Commission, on an annual basis, a 
certification that it is providing such services in compliance with its 
geographic rate averaging and rate integration obligations pursuant to 
section 254(g) of the Communications Act of 1934, as amended.
    (b) The certification filed pursuant to paragraph (a) of this 
section shall be signed by an officer of the company under oath.

[61 FR 59366, Nov. 22, 1996]



  Subpart T--Separate Affiliate Requirements for Incumbent Independent 
  Local Exchange Carriers That Provide In-Region, Interstate Domestic 
Interexchange Services or In-Region International Interexchange Services

    Source: 62 FR 36017, July 3, 1997, unless otherwise noted.



Sec. 64.1901  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 regulate the provision 
of in-

[[Page 294]]

region, interstate, domestic, interexchange services and in-region 
international interexchange services by incumbent independent local 
exchange carriers.



Sec. 64.1902  Terms and definitions.

    Terms used in this part have the following meanings:
    Books of account. Books of account refer to the financial accounting 
system a company uses to record, in monetary terms, the basic 
transactions of a company. These books of account reflect the company's 
assets, liabilities, and equity, and the revenues and expenses from 
operations. Each company has its own separate books of account.
    Incumbent Independent Local Exchange Carrier (Incumbent Independent 
LEC). The term incumbent independent local exchange carrier means, with 
respect to an area, the independent 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 title; 
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. The Commission may also, by rule, treat an independent 
local exchange carrier as an incumbent independent local exchange 
carrier pursuant to section 251(h)(2) of the Communications Act of 1934, 
as amended.
    Independent Local Exchange Carrier (Independent LEC). Independent 
local exchange carriers are local exchange carriers, including GTE, 
other than the BOCs.
    Independent Local Exchange Carrier Affiliate (Independent LEC 
Affiliate). An independent local exchange carrier affiliate is a carrier 
that is owned (in whole or in part) or controlled by, or under common 
ownership (in whole or in part) or control with, an independent local 
exchange carrier.
    In-region service. In-region service means telecommunications 
service originating in an independent local exchange carrier's local 
service areas or 800 service, private line service, or their equivalents 
that:
    (1) Terminate in the independent LEC's local exchange areas; and
    (2) Allow the called party to determine the interexchange carrier, 
even if the service originates outside the independent LEC's local 
exchange areas.
    Local Exchange Carrier. The term local exchange carrier means 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), except to the extent that the Commission finds that such 
service should be included in the definition of that term.

[64 FR 44425, Aug. 16, 1999]



Sec. 64.1903  Obligations of all incumbent independent local exchange carriers.

    (a) Except as provided in paragraph (c) of this section, an 
incumbent independent LEC providing in-region, interstate, interexchange 
services or in-region international interexchange services shall provide 
such services through an affiliate that satisfies the following 
requirements:
    (1) The affiliate shall maintain separate books of account from its 
affiliated exchange companies. Nothing in this section requires the 
affiliate to maintain separate books of account that comply with Part 32 
of this title;
    (2) The affiliate shall not jointly own transmission or switching 
facilities with its affiliated exchange companies. Nothing in this 
section prohibits an affiliate from sharing personnel or other resources 
or assets with an affiliated exchange company; and
    (3) The affiliate shall acquire any services from its affiliated 
exchange companies for which the affiliated exchange companies are 
required to file a tariff at tariffed rates, terms, and conditions. 
Nothing in this section shall prohibit the affiliate from acquiring any 
unbundled network elements or exchange services for the provision of a 
telecommunications service from its affiliated exchange companies, 
subject to the same terms and conditions as provided in an agreement 
approved

[[Page 295]]

under section 252 of the Communications Act of 1934, as amended.
    (b) Except as provided in paragraph (b)(1) of this section, the 
affiliate required in paragraph (a) of this section shall be a separate 
legal entity from its affiliated exchange companies. The affiliate may 
be staffed by personnel of its affiliated exchange companies, housed in 
existing offices of its affiliated exchange companies, and use its 
affiliated exchange companies' marketing and other services, subject to 
paragraph (a)(3) of this section.
    (1) For an incumbent independent LEC that provides in-region, 
interstate domestic interexchange services or in-region international 
interexchange services using no interexchange switching or transmission 
facilities or capability of the LEC's own (i.e., ``independent LEC 
reseller,'') the affiliate required in paragraph (a) of this section may 
be a separate corporate division of such incumbent independent LEC. All 
other provisions of this Subpart applicable to an independent LEC 
affiliate shall continue to apply, as applicable, to such separate 
corporate division.
    (2) [Reserved]
    (c) An incumbent independent LEC that is providing in-region, 
interstate, domestic interexchange services or in-region international 
interexchange services prior to April 18, 1997, but is not providing 
such services through an affiliate that satisfies paragraph (a) of this 
section as of April 18, 1997, shall comply with the requirements of this 
section no later than August 30, 1999.

[64 FR 44425, Aug. 16, 1999]



           Subpart U--Customer Proprietary Network Information

    Source: 63 FR 20338, Apr. 24, 1998, unless otherwise noted.



Sec. 64.2001  Basis and purpose.

    (a) Basis. The rules in this subpart are issued pursuant to the 
Communications Act of 1934, as amended.
    (b) Purpose. The purpose of the rules in this subpart is to 
implement section 222 of the Communications Act of 1934, as amended, 47 
U.S.C. 222.



Sec. 64.2003  Definitions.

    Terms used in this subpart have the following meanings:
    (a) Affiliate. An affiliate is an entity that directly or indirectly 
owns or controls, is owned or controlled by, or is under common 
ownership or control with, another entity.
    (b) Customer. A customer of a telecommunications carrier is a person 
or entity to which the telecommunications carrier is currently providing 
service.
    (c) Customer proprietary network information (CPNI).
    (1) Customer proprietary network information (CPNI) is:
    (i) Information that relates to the quantity, technical 
configuration, type, destination, and amount of use of a 
telecommunications service subscribed to by any customer of a 
telecommunications carrier, and that is made available to the carrier by 
the customer solely by virtue of the customer-carrier relationship; and
    (ii) Information contained in the bills pertaining to telephone 
exchange service or telephone toll service received by a customer of a 
carrier.
    (2) Customer proprietary network information does not include 
subscriber list information.
    (d) Customer premises equipment (CPE). Customer premises equipment 
(CPE) is equipment employed on the premises of a person (other than a 
carrier) to originate, route, or terminate telecommunications.
    (e) Information service. Information service is the offering of a 
capability for generating, acquiring, storing, transforming, processing, 
retrieving, utilizing, or making available information via 
telecommunications, and includes electronic publishing, but does not 
include any use of any such capability for the management, control, or 
operation of a telecommunications system or the management of a 
telecommunications service.
    (f) Local exchange carrier (LEC). A local exchange carrier (LEC) is 
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

[[Page 296]]

person insofar as such person is engaged in the provision of commercial 
mobile service under 47 U.S.C. 332(c).
    (g) Subscriber list information (SLI). Subscriber list information 
(SLI) is any information:
    (1) Identifying the listed names of subscribers of a carrier and 
such subscribers' 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 carrier or an affiliate has published, caused to be 
published, or accepted for publication in any directory format.
    (h) 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)).

    Effective Date Note: At 67 FR 59211, Sept. 20, 2002, Sec. 64.2003 
was revised, effective Oct. 21, 2002. For the convenience of the user, 
the revised text is set forth as follows:

Sec. 64.2003  Definitions.

    Terms in this subpart have the following meanings:
    (a) Affiliate. The term ``affiliate'' has the same meaning given 
such term in section 3(1) of the Communications Act of 1934, as amended, 
47 U.S.C. 153(1).
    (b) Communications-related services. The term ``communications-
related services'' means telecommunications services, information 
services typically provided by telecommunications carriers, and services 
related to the provision or maintenance of customer premises equipment.
    (c) Customer. A customer of a telecommunications carrier is a person 
or entity to which the telecommunications carrier is currently providing 
service.
    (d) Customer proprietary network information (CPNI). The term 
``customer proprietary network information (CPNI)'' has the same meaning 
given to such term in section 222(h)(1) of the Communications Act of 
1934, as amended, 47 U.S.C. 222(h)(1).
    (e) Customer premises equipment (CPE). The term ``customer premises 
equipment (CPE)'' has the same meaning given to such term in section 
3(14) of the Communications Act of 1934, as amended, 47 U.S.C. 153(14).
    (f) Information services typically provided by telecommunications 
carriers. The phrase ``information services typically provided by 
telecommunications carriers'' means only those information services (as 
defined in section 3(20) of the Communications Act of 1934, as amended, 
47 U.S.C. 153(2)) that are typically provided by telecommunications 
carriers, such as Internet access or voice mail services. Such phrase 
``information services typically provided by telecommunications 
carriers,'' as used in this subpart, shall not include retail consumer 
services provided using Internet websites (such as travel reservation 
services or mortgage lending services), whether or not such services may 
otherwise be considered to be information services.
    (g) Local exchange carrier (LEC). The term ``local exchange carrier 
(LEC)'' has the same meaning given to such term in section 3(26) of the 
Communications Act of 1934, as amended, 47 U.S.C. 153(26).
    (h) Opt-in approval. The term ``opt-in approval'' refers to a method 
for obtaining customer consent to use, disclose, or permit access to the 
customer's CPNI. This approval method requires that the carrier obtain 
from the customer affirmative, express consent allowing the requested 
CPNI usage, disclosure, or access after the customer is provided 
appropriate notification of the carrier's request consistent with the 
requirements set forth in this subpart.
    (i) Opt-out approval. The term ``opt-out approval'' refers to a 
method for obtaining customer consent to use, disclose, or permit access 
to the customer's CPNI. Under this approval method, a customer is deemed 
to have consented to the use, disclosure, or access to the customer's 
CPNI if the customer has failed to object thereto within the waiting 
period described in Sec. 64.2009(d)(1) after the customer is provided 
appropriate notification of the carrier's request for consent consistent 
with the rules in this subpart.
    (j) Subscriber list information (SLI). The term ``subscriber list 
information (SLI)'' has the same meaning given to such term in section 
222(h)(3) of the Communications Act of 1934, as amended, 47 U.S.C. 
222(h)(3).
    (k) Telecommunications carrier or carrier. The terms 
``telecommunications carrier'' or ``carrier'' shall have the same 
meaning as set forth in section 3(44) of the Communications Act of 1934, 
as amended, 47 U.S.C. 153(44).
    (l) Telecommunications service. The term ``telecommunications 
service'' has the same meaning given to such term in section 3(46) of 
the Communications Act of 1934, as amended, 47 U.S.C. 153(46).



Sec. 64.2005  Use of customer proprietary network information without customer approval.

    (a) Any telecommunications carrier may use, disclose, or permit 
access to CPNI for the purpose of providing or marketing service 
offerings among the

[[Page 297]]

categories of service (i.e., local, interexchange, and CMRS) already 
subscribed to by the customer from the same carrier, without customer 
approval.
    (1) If a telecommunications carrier provides different categories of 
service, and a customer subscribes to more than one category of service 
offered by the carrier, the carrier is permitted to share CPNI among the 
carrier's affiliated entities that provide a service offering to the 
customer.
    (2) If a telecommunications carrier provides different categories of 
service, but a customer does not subscribe to more than one offering by 
the carrier, the carrier is not permitted to share CPNI among the 
carrier's affiliated entities.
    (b) A telecommunications carrier may not use, disclose, or permit 
access to CPNI to market to a customer service offerings that are within 
a category of service to which the customer does not already subscribe 
to from that carrier, unless the carrier has customer approval to do so, 
except as described in paragraph (c) of this section.
    (1) A wireless provider may use, disclose, or permit access to CPNI 
derived from its provision of CMRS, without customer approval, for the 
provision of CPE and information service(s). A wireline carrier may use, 
disclose or permit access to CPNI derived from its provision of local 
exchange service or interexchange service, without customer approval, 
for the provision of CPE and call answering, voice mail or messaging, 
voice storage and retrieval services, fax store and forward, and 
protocol conversions.
    (2) A telecommunications carrier may not use, disclose or permit 
access to CPNI to identify or track customers that call competing 
service providers. For example, a local exchange carrier may not use 
local service CPNI to track all customers that call local service 
competitors.
    (c) A telecommunications carrier may use, disclose, or permit access 
to CPNI, without customer approval, as described in this paragraph (c).
    (1) A telecommunications carrier may use, disclose, or permit access 
to CPNI, without customer approval, in its provision of inside wiring 
installation, maintenance, and repair services.
    (2) CMRS providers may use, disclose, or permit access to CPNI for 
the purpose of conducting research on the health effects of CMRS.
    (3) LECs and CMRS providers may use CPNI, without customer approval, 
to market services formerly known as adjunct-to-basic services, such as, 
but not limited to, speed dialing, computer-provided directory 
assistance, call monitoring, call tracing, call blocking, call return, 
repeat dialing, call tracking, call waiting, caller I.D., call 
forwarding, and certain centrex features.
    (d) A telecommunications carrier may use, disclose, or permit access 
to CPNI to protect the rights or property of the carrier, or to protect 
users of those services and other carriers from fraudulent, abusive, or 
unlawful use of, or subscription to, such services.

[63 FR 20338, Apr. 24, 1998, as amended at 64 FR 53264, Oct. 1, 1999]

    Effective Date Note: At 67 FR 59211, Sept. 20, 2002, Sec. 64.2005 
was amended by revising paragraphs (a) introductory text, (a)(2), (b) 
introductory text, and (b)(1), effective Oct. 21, 2002. For the 
convenience of the user, the revised text is set forth as follows:

Sec. 64.2005  Use of customer proprietary network information without 
          customer approval.

    (a) Any telecommunications carrier may use, disclose, or permit 
access to CPNI for the purpose of providing or marketing service 
offerings among the categories of service (i.e., local, interexchange, 
and CMRS) to which the customer already subscribes from the same 
carrier, without customer approval.

                                * * * * *

    (2) If a telecommunications carrier provides different categories of 
service, but a customer does not subscribe to more than one offering by 
the carrier, the carrier is not permitted to share CPNI with its 
affiliates, except as provided in Sec. 64.2007(b).
    (b) A telecommunications carrier may not use, disclose, or permit 
access to CPNI to market to a customer service offerings that are within 
a category of service to which the subscriber does not already subscribe 
from that carrier, unless that carrier has customer approval to do so, 
except as described in paragraph (c) of this section.
    (1) A wireless provider may use, disclose, or permit access to CPNI 
derived from its

[[Page 298]]

provision of CMRS, without customer approval, for the provision of CPE 
and information service(s). A wireline carrier may use, disclose or 
permit access to CPNI derived from its provision of local exchange 
service or interexchange service, without customer approval, for the 
provision of CPE and call answering, voice mail or messaging, voice 
storage and retrieval services, fax store and forward, and protocol 
conversion.

                                * * * * *



Sec. 64.2007  Notice and approval required for use of customer proprietary network information.

    (a) A telecommunications carrier must obtain customer approval to 
use, disclose, or permit access to CPNI to market to a customer service 
to which the customer does not already subscribe to from that carrier.
    (b) A telecommunications carrier may obtain approval through 
written, oral or electronic methods.
    (c) A telecommunications carrier relying on oral approval must bear 
the burden of demonstrating that such approval has been given in 
compliance with the Commission's rules in this part.
    (d) Approval obtained by a telecommunications carrier for the use of 
CPNI outside of the customer's total service relationship with the 
carrier must remain in effect until the customer revokes or limits such 
approval.
    (e) A telecommunications carrier must maintain records of 
notification and approval, whether oral, written or electronic, for at 
least one year.
    (f) Prior to any solicitation for customer approval, a 
telecommunications carrier must provide a one-time notification to the 
customer of the customer's right to restrict use of, disclosure of, and 
access to that customer's CPNI.
    (1) A telecommunications carrier may provide notification through 
oral or written methods.
    (2) Customer notification must provide sufficient information to 
enable the customer to make an informed decision as to whether to permit 
a carrier to use, disclose or permit access to, the customer's CPNI.
    (i) The notification must state that the customer has a right, and 
the carrier a duty, under federal law, to protect the confidentiality of 
CPNI.
    (ii) The notification must specify the types of information that 
constitute CPNI and the specific entities that will receive the CPNI, 
describe the purposes for which CPNI will be used, and inform the 
customer of his or her right to disapprove those uses, and deny or 
withdraw access to CPNI at any time.
    (iii) The notification must advise the customer of the precise steps 
the customer must take in order to grant or deny access to CPNI, and 
must clearly state that a denial of approval will not affect the 
provision of any services to which the customer subscribes.
    (iv) The notification must be comprehensible and not be misleading.
    (v) If written notification is provided, the notice must be clearly 
legible, use sufficiently large type, and be placed in an area so as to 
be readily apparent to a customer.
    (vi) If any portion of a notification is translated into another 
language, then all portions of the notification must be translated into 
that language.
    (vii) A carrier may state in the notification that the customer's 
approval to use CPNI may enhance the carrier's ability to offer products 
and services tailored to the customer's needs. A carrier also may state 
in the notification that it may be compelled to disclose CPNI to any 
person upon affirmative written request by the customer.
    (viii) A carrier may not include in the notification any statement 
attempting to encourage a customer to freeze third party access to CPNI.
    (ix) The notification must state that any approval, or denial of 
approval for the use of CPNI outside of the service to which the 
customer already subscribes to from that carrier is valid until the 
customer affirmatively revokes or limits such approval or denial.
    (3) A telecommunications carrier's solicitation for approval must be 
proximate to the notification of a customer's CPNI rights.

[63 FR 20338, Apr. 24, 1998, as amended at 64 FR 53264, Oct. 1, 1999]

[[Page 299]]


    Effective Date Note: At 67 FR 59212, Sept. 20, 2002, Sec. 64.2007 
was revised. This section contains information collection requirements 
and will not become effective until approval has been given by the 
Office of Management and Budget. For the convenience of the user, the 
revised text is set forth as follows:

Sec. 64.2007  Approval required for use of customer proprietary network 
          information.

    (a) A telecommunications carrier may obtain approval through 
written, oral or electronic methods.
    (1) A telecommunications carrier relying on oral approval shall bear 
the burden of demonstrating that such approval has been given in 
compliance with the Commission's rules in this part.
    (2) Approval or disapproval to use, disclose, or permit access to a 
customer's CPNI obtained by a telecommunications carrier must remain in 
effect until the customer revokes or limits such approval or 
disapproval.
    (3) A telecommunications carrier must maintain records of approval, 
whether oral, written or electronic, for at least one year.
    (b) Use of Opt-Out and Opt-In Approval Processes. (1) A 
telecommunications carrier may, subject to opt-out approval or opt-in 
approval, use its customer's individually identifiable CPNI for the 
purpose of marketing communications-related services to that customer. A 
telecommunications carrier may, subject to opt-out approval or opt-in 
approval, disclose its customer's individually identifiable CPNI, for 
the purpose of marketing communications-related services to that 
customer, to its agents; its affiliates that provide communications-
related services; and its joint venture partners and independent 
contractors. A telecommunications carrier may also permit such persons 
or entities to obtain access to such CPNI for such purposes. Any such 
disclosure to or access provided to joint venture partners and 
independent contractors shall be subject to the safeguards set forth in 
paragraph (b)(2) of this section.
    (2) Joint Venture/Contractor Safeguards. A telecommunications 
carrier that discloses or provides access to CPNI to its joint venture 
partners or independent contractors shall enter into confidentiality 
agreements with independent contractors or joint venture partners that 
comply with the following requirements. The confidentiality agreement 
shall:
    (i) Require that the independent contractor or joint venture partner 
use the CPNI only for the purpose of marketing or providing the 
communications-related services for which that CPNI has been provided;
    (ii) Disallow the independent contractor or joint venture partner 
from using, allowing access to, or disclosing the CPNI to any other 
party, unless required to make such disclosure under force of law; and
    (iii) Require that the independent contractor or joint venture 
partner have appropriate protections in place to ensure the ongoing 
confidentiality of consumers' CPNI.
    (3) Except for use and disclosure of CPNI that is permitted without 
customer approval under section Sec. 64.2005, or that is described in 
paragraph (b)(1) of this section, or as otherwise provided in section 
222 of the Communications Act of 1934, as amended, a telecommunications 
carrier may only use, disclose, or permit access to its customer's 
individually identifiable CPNI subject to opt-in approval.



Sec. 64.2008  Notice required for use of customer proprietary network information.

    (a) Notification, Generally. (1) Prior to any solicitation for 
customer approval, a telecommunications carrier must provide 
notification to the customer of the customer's right to restrict use of, 
disclosure of, and access to that customer's CPNI.
    (2) A telecommunications carrier must maintain records of 
notification, whether oral, written or electronic, for at least one 
year.
    (b) Individual notice to customers must be provided when soliciting 
approval to use, disclose, or permit access to customers' CPNI.
    (c) Content of Notice. Customer notification must provide sufficient 
information to enable the customer to make an informed decision as to 
whether to permit a carrier to use, disclose, or permit access to, the 
customer's CPNI.
    (1) The notification must state that the customer has a right, and 
the carrier has a duty, under federal law, to protect the 
confidentiality of CPNI.
    (2) The notification must specify the types of information that 
constitute CPNI and the specific entities that will receive the CPNI, 
describe the purposes for which CPNI will be used, and inform the 
customer of his or her right to disapprove those uses, and deny or 
withdraw access to CPNI at any time.
    (3) The notification must advise the customer of the precise steps 
the customer must take in order to grant or deny access to CPNI, and 
must clearly state that a denial of approval will not affect the 
provision of any services to which the customer subscribes. However, 
carriers may provide a brief

[[Page 300]]

statement, in clear and neutral language, describing consequences 
directly resulting from the lack of access to CPNI.
    (4) The notification must be comprehensible and must not be 
misleading.
    (5) If written notification is provided, the notice must be clearly 
legible, use sufficiently large type, and be placed in an area so as to 
be readily apparent to a customer.
    (6) If any portion of a notification is translated into another 
language, then all portions of the notification must be translated into 
that language.
    (7) A carrier may state in the notification that the customer's 
approval to use CPNI may enhance the carrier's ability to offer products 
and services tailored to the customer's needs. A carrier also may state 
in the notification that it may be compelled to disclose CPNI to any 
person upon affirmative written request by the customer.
    (8) A carrier may not include in the notification any statement 
attempting to encourage a customer to freeze third-party access to CPNI.
    (9) The notification must state that any approval, or denial of 
approval for the use of CPNI outside of the service to which the 
customer already subscribes from that carrier is valid until the 
customer affirmatively revokes or limits such approval or denial.
    (10) A telecommunications carrier's solicitation for approval must 
be proximate to the notification of a customer's CPNI rights.
    (d) Notice Requirements Specific to Opt-Out. A telecommunications 
carrier must provide notification to obtain opt-out approval through 
electronic or written methods, but not by oral communication (except as 
provided in paragraph (f) of this section). The contents of any such 
notification must comply with the requirements of paragraph (c) of this 
section.
    (1) Carriers must wait a 30-day minimum period of time after giving 
customers notice and an opportunity to opt-out before assuming customer 
approval to use, disclose, or permit access to CPNI. A carrier may, in 
its discretion, provide for a longer period. Carriers must notify 
customers as to the applicable waiting period for a response before 
approval is assumed.
    (i) In the case of an electronic form of notification, the waiting 
period shall begin to run from the date on which the notification was 
sent; and
    (ii) In the case of notification by mail, the waiting period shall 
begin to run on the third day following the date that the notification 
was mailed.
    (2) Carriers using the opt-out mechanism must provide notices to 
their customers every two years.
    (3) Telecommunications carriers that use e-mail to provide opt-out 
notices must comply with the following requirements in addition to the 
requirements generally applicable to notification:
    (i) Carriers must obtain express, verifiable, prior approval from 
consumers to send notices via e-mail regarding their service in general, 
or CPNI in particular;
    (ii) Carriers must allow customers to reply directly to e-mails 
containing CPNI notices in order to opt-out;
    (iii) Opt-out e-mail notices that are returned to the carrier as 
undeliverable must be sent to the customer in another form before 
carriers may consider the customer to have received notice;
    (iv) Carriers that use e-mail to send CPNI notices must ensure that 
the subject line of the message clearly and accurately identifies the 
subject matter of the e-mail; and
    (v) Telecommunications carriers must make available to every 
customer a method to opt-out that is of no additional cost to the 
customer and that is available 24 hours a day, seven days a week. 
Carriers may satisfy this requirement through a combination of methods, 
so long as all customers have the ability to opt-out at no cost and are 
able to effectuate that choice whenever they choose.
    (e) Notice Requirements Specific to Opt-In. A telecommunications 
carrier may provide notification to obtain opt-in approval through oral, 
written, or electronic methods. The contents of any such notification 
must comply with the requirements of paragraph (c) of this section.
    (f) Notice Requirements Specific to One-Time Use of CPNI. (1) 
Carriers may use

[[Page 301]]

oral notice to obtain limited, one-time use of CPNI for inbound and 
outbound customer telephone contacts for the duration of the call, 
regardless of whether carriers use opt-out or opt-in approval based on 
the nature of the contact.
    (2) The contents of any such notification must comply with the 
requirements of paragraph (c) of this section, except that 
telecommunications carriers may omit any of the following notice 
provisions if not relevant to the limited use for which the carrier 
seeks CPNI:
    (i) Carriers need not advise customers that if they have opted-out 
previously, no action is needed to maintain the opt-out election;
    (ii) Carriers need not advise customers that they may share CPNI 
with their affiliates or third parties and need not name those entities, 
if the limited CPNI usage will not result in use by, or disclosure to, 
an affiliate or third party;
    (iii) Carriers need not disclose the means by which a customer can 
deny or withdraw future access to CPNI, so long as carriers explain to 
customers that the scope of the approval the carrier seeks is limited to 
one-time use; and
    (iv) Carriers may omit disclosure of the precise steps a customer 
must take in order to grant or deny access to CPNI, as long as the 
carrier clearly communicates that the customer can deny access to his 
CPNI for the call.

[67 FR 59212, Sept. 20, 2002]

    Effective Date Note: At 67 FR 59212, Sept. 20, 2002, Sec. 64.2008 
was added. This section contains information collection requirements and 
will not become effective until approval has been given by the Office of 
Management and Budget.



Sec. 64.2009  Safeguards required for use of customer proprietary network information.

    (a) Telecommunications carriers must implement a system by which the 
status of a customer's CPNI approval can be clearly established prior to 
the use of CPNI.
    (b) Telecommunications carriers must train their personnel as to 
when they are and are not authorized to use CPNI, and carriers must have 
an express disciplinary process in place.
    (c) All carriers shall maintain a record, electronically or in some 
other manner, of their sales and marketing campaigns that use CPNI. The 
record must include a description of each campaign, the specific CPNI 
that was used in the campaign, the date and purpose of the campaign, and 
what products or services were offered as part of the campaign. Carriers 
shall retain the record for a minimum of one year.
    (d) Telecommunications carriers must establish a supervisory review 
process regarding carrier compliance with the rules in this subpart for 
outbound marketing situations and maintain records of carrier compliance 
for a minimum period of one year. Specifically, sales personnel must 
obtain supervisory approval of any proposed outbound marketing request.
    (e) A telecommunications carrier must have an officer, as an agent 
of the carrier, sign a compliance certificate on an annual basis stating 
that the officer has personal knowledge that the company has established 
operating procedures that are adequate to ensure compliance with the 
rules in this subpart. The carrier must provide a statement accompanying 
the certificate explaining how its operating procedures ensure that it 
is or is not in compliance with the rules in this subpart.

[63 FR 20338, Apr. 24, 1998, as amended at 64 FR 53264, Oct. 1, 1999]

    Effective Date Note: At 67 FR 59213, Sept. 20, 2002, Sec. 64.2009 
was amended by revising paragraphs (c) and (d) and by adding paragraph 
(f). These paragraphs contain information collection requirements and 
will not become effective until approval has been given by the Office of 
Management and Budget. For the convenience of the user, the revised and 
added text is set forth as follows:

Sec. 64.2009  Safeguards required for use of customer proprietary 
          network information.

                                * * * * *

    (c) All carriers shall maintain a record, electronically or in some 
other manner, of their own and their affiliates' sales and marketing 
campaigns that use their customers' CPNI. All carriers shall maintain a 
record of all instances where CPNI was disclosed or provided to third 
parties, or where third parties were allowed access to CPNI. The record

[[Page 302]]

must include a description of each campaign, the specific CPNI that was 
used in the campaign, and what products and services were offered as a 
part of the campaign. Carriers shall retain the record for a minimum of 
one year.
    (d) Telecommunications carriers must establish a supervisory review 
process regarding carrier compliance with the rules in this subpart for 
outbound marketing situations and maintain records of carrier compliance 
for a minimum period of one year. Specifically, sales personnel must 
obtain supervisory approval of any proposed outbound marketing request 
for customer approval.

                                * * * * *

    (f) Carriers must provide written notice within five business days 
to the Commission of any instance where the opt-out mechanisms do not 
work properly, to such a degree that consumers' inability to opt-out is 
more than an anomaly.
    (1) The notice shall be in the form of a letter, and shall include 
the carrier's name, a description of the opt-out mechanism(s) used, the 
problem(s) experienced, the remedy proposed and when it will be/was 
implemented, whether the relevant state commission(s) has been notified 
and whether it has taken any action, a copy of the notice provided to 
customers, and contact information.
    (2) Such notice must be submitted even if the carrier offers other 
methods by which consumers may opt-out.



  Subpart V--Telecommunications Carrier Systems Security and Integrity 
   Pursuant to the Communications Assistance for Law Enforcement Act 
                                 (CALEA)

    Source: 64 FR 51469, Sept. 23, 1999, unless otherwise noted.



Sec. 64.2100  Purpose.

    Pursuant to the Communications Assistance for Law Enforcement Act, 
Public Law 103-414, 108 Stat. 4279 (1994) (codified as amended in 
sections of 18 U.S.C. and 47 U.S.C.), this subpart contains rules that 
require a telecommunications carrier to ensure that any interception of 
communications or access to call-identifying information effected within 
its switching premises can be activated only in accordance with 
appropriate legal authorization, appropriate carrier authorization, and 
with the affirmative intervention of an individual officer or employee 
of the carrier acting in accordance with regulations prescribed by the 
Commission.



Sec. 64.2101  Scope.

    The definitions included in this subchapter shall be used solely for 
the purpose of implementing CALEA requirements.



Sec. 64.2102  Definitions.

    (a) Appropriate legal authorization. The term appropriate legal 
authorization means:
    (1) A court order signed by a judge or magistrate authorizing or 
approving interception of wire or electronic communications; or
    (2) Other authorization, pursuant to 18 U.S.C. 2518(7), or any other 
relevant federal or state statute.
    (b) Appropriate carrier authorization. The term appropriate carrier 
authorization means the policies and procedures adopted by 
telecommunications carriers to supervise and control officers and 
employees authorized to assist law enforcement in conducting any 
interception of communications or access to call-identifying 
information.
    (c) Appropriate authorization. The term appropriate authorization 
means both appropriate legal authorization and appropriate carrier 
authorization.



Sec. 64.2103  Policies and procedures for employee supervision and control.

    A telecommunications carrier shall:
    (a) Appoint a senior officer or employee responsible for ensuring 
that any interception of communications or access to call-identifying 
information effected within its switching premises can be activated only 
in accordance with a court order or other lawful authorization and with 
the affirmative intervention of an individual officer or employee of the 
carrier.
    (b) Establish policies and procedures to implement paragraph (a) of 
this section, to include:
    (1) A statement that carrier personnel must receive appropriate 
legal authorization and appropriate carrier authorization before 
enabling law enforcement officials and carrier personnel to implement 
the interception of communications or access to call-identifying 
information;

[[Page 303]]

    (2) An interpretation of the phrase ``appropriate authorization'' 
that encompasses the definitions of appropriate legal authorization and 
appropriate carrier authorization, as used in paragraph (b)(1) of this 
section;
    (3) A detailed description of how long it will maintain its records 
of each interception of communications or access to call-identifying 
information pursuant to Sec. 64.2104;
    (4) In a separate appendix to the policies and procedures document:
    (i) The name and a description of the job function of the senior 
officer or employee appointed pursuant to paragraph (a) of this section; 
and
    (ii) Information necessary for law enforcement agencies to contact 
the senior officer or employee appointed pursuant to paragraph (a) of 
this section or other CALEA points of contact on a seven days a week, 24 
hours a day basis.
    (c) Report to the affected law enforcement agencies, within a 
reasonable time upon discovery:
    (1) Any act of compromise of a lawful interception of communications 
or access to call-identifying information to unauthorized persons or 
entities; and
    (2) Any act of unlawful electronic surveillance that occurred on its 
premises.

[66 FR 22448, May 4, 2001]



Sec. 64.2104  Maintaining secure and accurate records.

    (a) A telecommunications carrier shall maintain a secure and 
accurate record of each interception of communications or access to 
call-identifying information, made with or without appropriate 
authorization, in the form of single certification.
    (1) This certification must include, at a minimum, the following 
information:
    (i) The telephone number(s) and/or circuit identification numbers 
involved;
    (ii) The start date and time that the carrier enables the 
interception of communications or access to call identifying 
information;
    (iii) The identity of the law enforcement officer presenting the 
authorization;
    (iv) The name of the person signing the appropriate legal 
authorization;
    (v) The type of interception of communications or access to call-
identifying information (e.g., pen register, trap and trace, Title III, 
FISA); and
    (vi) The name of the telecommunications carriers' personnel who is 
responsible for overseeing the interception of communication or access 
to call-identifying information and who is acting in accordance with the 
carriers' policies established under Sec. 64.2103.
    (2) This certification must be signed by the individual who is 
responsible for overseeing the interception of communications or access 
to call-identifying information and who is acting in accordance with the 
telecommunications carrier's policies established under Sec. 64.2103. 
This individual will, by his/her signature, certify that the record is 
complete and accurate.
    (3) This certification must be compiled either contemporaneously 
with, or within a reasonable period of time after the initiation of the 
interception of the communications or access to call-identifying 
information.
    (4) A telecommunications carrier may satisfy the obligations of 
paragraph (a) of this section by requiring the individual who is 
responsible for overseeing the interception of communication or access 
to call-identifying information and who is acting in accordance with the 
carriers' policies established under Sec. 64.2103 to sign the 
certification and append the appropriate legal authorization and any 
extensions that have been granted. This form of certification must at a 
minimum include all of the information listed in paragraph (a) of this 
section.
    (b) A telecommunications carrier shall maintain the secure and 
accurate records set forth in paragraph (a) for a reasonable period of 
time as determined by the carrier.
    (c) It is the telecommunications carrier's responsibility to ensure 
its records are complete and accurate.
    (d) Violation of this rule is subject to the penalties of 
Sec. 64.2106.

[64 FR 51469, Sept. 23, 1999, as amended at 64 FR 52245, Sept. 28, 1999; 
66 FR 22448, May 4, 2001]

[[Page 304]]



Sec. 64.2105  Submission of policies and procedures and commission review.

    (a) Each telecommunications carrier shall file with the Commission 
the policies and procedures it uses to comply with the requirements of 
this subchapter. These policies and procedures shall be filed with the 
Federal Communications Commission within 90 days of the effective date 
of these rules, and thereafter, within 90 days of a carrier's merger or 
divestiture or a carrier's amendment of its existing policies and 
procedures.
    (b) The Commission shall review each telecommunications carrier's 
policies and procedures to determine whether they comply with the 
requirements of Sec. 64.2103 and Sec. 64.2104.
    (1) If, upon review, the Commission determines that a 
telecommunications carrier's policies and procedures do not comply with 
the requirements established under Sec. 64.2103 and Sec. 64.2104, the 
telecommunications carrier shall modify its policies and procedures in 
accordance with an order released by the Commission.
    (2) The Commission shall review and order modification of a 
telecommunications carrier's policies and procedures as may be necessary 
to insure compliance by telecommunications carriers with the 
requirements of the regulations prescribed under Sec. 64.2103 and 
Sec. 64.2104.



Sec. 64.2106  Penalties.

    In the event of a telecommunications carrier's violation of 
Sec. 64.2103 or Sec. 64.2104 of this subchapter, the Commission shall 
enforce the penalties articulated in 47 U.S.C. 503(b) of the 
Communications Act of 1934 and 47 CFR 1.8.



  Subpart W--Required New Capabilities Pursuant to the Communications 
               Assistance for Law Enforcement Act (CALEA)

    Source: 64 FR 51718, Sept. 24, 1999, unless otherwise noted.



Sec. 64.2200  Purpose.

    Pursuant to the Communications Assistance for Law Enforcement Act 
(CALEA), Public Law 103-414, 108 Stat. 4279 (1994) (codified as amended 
in sections of 18 U.S.C. and 47 U.S.C.), this subpart contains rules 
that require a wireline telecommunications carrier to implement certain 
capabilities to ensure law enforcement access to authorized 
communications or call-identifying information.



Sec. 64.2201  Scope.

    The definitions included in this subpart shall be used solely for 
the purpose of implementing CALEA requirements.



Sec. 64.2202  Definitions.

    Call identifying information. Call identifying information means 
dialing or signaling information that identifies the origin, direction, 
destination, or termination of each communication generated or received 
by a subscriber by means of any equipment, facility, or service of a 
telecommunications carrier. Call identifying information is ``reasonably 
available'' to a carrier if it is present at an intercept access point 
and can be made available without the carrier being unduly burdened with 
network modifications.
    Collection function. The location where lawfully authorized 
intercepted communications and call-identifying information is collected 
by a law enforcement agency (LEA).
    Content of subject-initiated conference calls. Capability that 
permits a LEA to monitor the content of conversations by all parties 
connected via a conference call when the facilities under surveillance 
maintain a circuit connection to the call.
    Destination. A party or place to which a call is being made (e.g., 
the called party).
    Dialed digit extraction. Capability that permits a LEA to receive on 
the call data channel a digits dialed by a subject after a call is 
connected to another carrier's service for processing and routing.
    Direction. A party or place to which a call is re-directed or the 
party or place from which it came, either incoming or outgoing (e.g., a 
redirected-to party or redirected-from party).
    IAP. Intercept access point is a point within a carrier's system 
where some

[[Page 305]]

of the communications or call-identifying information of an intercept 
subject's equipment, facilities, and services are accessed.
    In-band and out-of-band signaling. Capability that permits a LEA to 
be informed when a network message that provides call identifying 
information (e.g., ringing, busy, call waiting signal, message light) is 
generated or sent by the IAP switch to a subject using the facilities 
under surveillance. Excludes signals generated by customer premises 
equipment when no network signal is generated.
    J-STD-025. The interim standard developed by the Telecommunications 
Industry Association and the Alliance for Telecommunications Industry 
Solutions for wireline, cellular, and broadband PCS carriers. This 
standard defines services and features to support lawfully authorized 
electronic surveillance, and specifies interfaces necessary to deliver 
intercepted communications and call-identifying information to a LEA.
    LEA. Law enforcement agency; e.g., the Federal Bureau of 
Investigation or a local police department.
    Origin. A party initiating a call (e.g., a calling party), or a 
place from which a call is initiated.
    Party hold, join, drop on conference calls. Capability that permits 
a LEA to identify the parties to a conference call conversation at all 
times.
    Subject-initiated dialing and signaling information. Capability that 
permits a LEA to be informed when a subject using the facilities under 
surveillance uses services that provide call identifying information, 
such as call forwarding, call waiting, call hold, and three-way calling. 
Excludes signals generated by customer premises equipment when no 
network signal is generated.
    Termination. A party or place at the end of a communication path 
(e.g. the called or call-receiving party, or the switch of a party that 
has placed another party on hold).
    Timing information. Capability that permits a LEA to associate call-
identifying information with the content of a call. A call-identifying 
message must be sent from the carrier's IAP to the LEA's Collection 
Function within eight seconds of receipt of that message by the IAP at 
least 95% of the time, and with the call event time-stamped to an 
accuracy of at least 200 milliseconds.

[64 FR 51718, Sept. 24, 1999, as amended at 67 FR 22008, May 2, 2002]



Sec. 64.2203  Capabilities that must be provided by a wireline telecommunications carrier.

    (a) Except as provided under paragraph (b) of this section, as of 
June 30, 2000, a wireline telecommunications carrier shall provide to a 
LEA the assistance capability requirements of CALEA, see 47 U.S.C. 1002. 
A carrier may satisfy these requirements by complying with publicly 
available technical requirements or standards adopted by an industry 
association or standard-setting organization, such as J-STD-025.
    (b) As of November 19, 2001, a wireline telecommunications carrier 
shall provide to a LEA communications and call-identifying information 
transported by packet-mode communications.
    (c) As of June 30, 2002, a wireline telecommunications carrier shall 
provide to a LEA the following capabilities:
    (1) Content of subject-initiated conference calls;
    (2) Party hold, join, drop on conference calls;
    (3) Subject-initiated dialing and signaling information;
    (4) In-band and out-of-band signaling;
    (5) Timing information;
    (6) Dialed digit extraction, with a toggle feature that can 
activate/deactivate this capability.

[64 FR 51718, Sept. 24, 1999; 65 FR 36637, June 9, 2000, as amended at 
65 FR 18255, Apr. 7, 2000; 67 FR 22008, May 2, 2002]



                 Subpart X--Subscriber List Information

    Source: 64 FR 53947, Oct. 5, 2000, unless otherwise noted.



Sec. 64.2301  Basis and purpose.

    (a) Basis. These rules are issued pursuant to the Communications Act 
of 1934, as amended.

[[Page 306]]

    (b) Purpose. The purpose of these rules is to implement section 
222(e) of the Communications Act of 1934, as amended, 47 U.S.C. 222. 
Section 222(e) requires that ``a telecommunications carrier that 
provides telephone exchange service shall provide subscriber list 
information gathered in its capacity as a provider of such service on a 
timely and unbundled basis, under nondiscriminatory and reasonable 
rates, terms, and conditions, to any person upon request for the purpose 
of publishing directories in any format.''



Sec. 64.2305  Definitions.

    Terms used in this subpart have the following meanings:
    (a) Base file subscriber list information. A directory publisher 
requests base file subscriber list information when the publisher 
requests, as of a given date, all of a carrier's subscriber list 
information that the publisher wishes to include in one or more 
directories.
    (b) Business subscriber. Business subscriber refers to a subscriber 
to telephone exchange service for businesses.
    (c) Primary advertising classification. A primary advertising 
classification is the principal business heading under which a 
subscriber to telephone exchange service for businesses chooses to be 
listed in the yellow pages, if the carrier either assigns that heading 
or is obligated to provide yellow pages listings as part of telephone 
exchange service to businesses. In other circumstances, a primary 
advertising classification is the classification of a subscriber to 
telephone exchange service as a business subscriber.
    (d) Residential subscriber. Residential subscriber refers to a 
subscriber to telephone exchange service that is not a business 
subscriber.
    (e) Subscriber list information. Subscriber list information is any 
information:
    (1) Identifying the listed names of subscribers of a carrier and 
such subscribers' 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 carrier or an affiliate has published, caused to be 
published, or accepted for publication in any directory format.
    (f) 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)).
    (g) Telephone exchange service. Telephone exchange service means:
    (1) 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
    (B) 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.
    (h) Updated subscriber list information. A directory publisher 
requests updated subscriber list information when the publisher requests 
changes to all or any part of a carrier's subscriber list information 
occurring between specified dates.



Sec. 64.2309  Provision of subscriber list information.

    (a) A telecommunications carrier that provides telephone exchange 
service shall provide subscriber list information gathered in its 
capacity as a provider of such service on a timely and unbundled basis, 
under nondiscriminatory and reasonable rates, terms, and conditions, to 
any person upon request for the purpose of publishing directories in any 
format.
    (b) The obligation under paragraph (a) to provide a particular 
telephone subscriber's subscriber list information extends only to the 
carrier that provides that subscriber with telephone exchange service.



Sec. 64.2313  Timely basis.

    (a) For purposes of Sec. 64.2309, a telecommunications carrier 
provides subscriber list information on a timely

[[Page 307]]

basis only if the carrier provides the requested information to the 
requesting directory publisher either:
    (1) At the time at which, or according to the schedule under which, 
the directory publisher requests that the subscriber list information be 
provided;
    (2) When the carrier does not receive at least thirty days advance 
notice of the time the directory publisher requests that subscriber list 
information be provided, on the first business day that is at least 
thirty days from date the carrier receives that request; or
    (3) At a time determined in accordance with paragraph (b) of this 
section.
    (b) If a carrier's internal systems do not permit the carrier to 
provide subscriber list information within either of the time frames 
specified in paragraph (a)(1) of this section, the carrier shall:
    (1) Within thirty days of receiving the publisher's request, inform 
the directory publisher that the requested schedule cannot be 
accommodated and tell the directory publisher which schedules can be 
accommodated; and
    (2) Adhere to the schedule the directory publisher chooses from 
among the available schedules.



Sec. 64.2317  Unbundled basis.

    (a) A directory publisher may request that a carrier unbundle 
subscriber list information on any basis for the purpose of publishing 
one or more directories.
    (b) For purposes of Sec. 64.2309, a telecommunications carrier 
provides subscriber list information on an unbundled basis only if the 
carrier provides:
    (1) The listings the directory publisher requests and no other 
listings, products, or services; or
    (2) Subscriber list information on a basis determined in accordance 
with paragraph (c) of this section.
    (c) If the carrier's internal systems do not permit it unbundle 
subscriber list information on the basis a directory publisher requests, 
the carrier must:
    (1) Within thirty days of receiving the publisher's request, inform 
the directory publisher that it cannot unbundle subscriber list 
information on the requested basis and tell the directory publisher the 
bases on which the carrier can unbundle subscriber list information; and
    (2) In accordance with paragraph (d) of this section, provide 
subscriber list information to the directory publisher unbundled on the 
basis the directory publisher chooses from among the available bases.
    (d) If a carrier provides a directory publisher listings in addition 
to those the directory publisher requests, the carrier may impose 
charges for, and the directory publisher may publish, only the requested 
listings.
    (e) A carrier must not require directory publishers to purchase any 
product or service other than subscriber list information as a condition 
of obtaining subscriber list information.



Sec. 64.2321  Nondiscriminatory rates, terms, and conditions.

    For purposes of Sec. 64.2309, a telecommunications carrier provides 
subscriber list information under nondiscriminatory rates, terms, and 
conditions only if the carrier provides subscriber list information 
gathered in its capacity as a provider of telephone exchange service to 
a requesting directory publisher at the same rates, terms, and 
conditions that the carrier provides the information to its own 
directory publishing operation, its directory publishing affiliate, or 
other directory publishers.



Sec. 64.2325  Reasonable rates, terms, and conditions.

    (a) For purposes of Sec. 64.2309, a telecommunications carrier will 
be presumed to provide subscriber list information under reasonable 
rates if its rates are no more than $0.04 a listing for base file 
subscriber list information and no more than $0.06 a listing for updated 
subscriber list information.
    (b) For purposes of Sec. 64.2309, a telecommunications carrier 
provides subscriber list information under reasonable terms and 
conditions only if the carrier does not restrict a directory publisher's 
choice of directory format.



Sec. 64.2329  Format.

    (a) A carrier shall provide subscriber list information obtained in 
its capacity as a provider of telephone exchange

[[Page 308]]

service to a requesting directory publisher in the format the publisher 
specifies, if the carrier's internal systems can accommodate that 
format.
    (b) If a carrier's internal systems do not permit the carrier to 
provide subscriber list information in the format the directory 
publisher specifies, the carrier shall:
    (1) Within thirty days of receiving the publisher's request, inform 
the directory publisher that the requested format cannot be accommodated 
and tell the directory publisher which formats can be accommodated; and
    (2) Provide the requested subscriber list information in the format 
the directory publisher chooses from among the available formats.



Sec. 64.2333  Burden of proof.

    (a) In any future proceeding arising under section 222(e) of the 
Communications Act or Sec. 64.2309, the burden of proof will be on the 
carrier to the extent it claims its internal subscriber list information 
systems cannot accommodate the delivery time, delivery schedule, 
unbundling level, or format requested by a directory publisher.
    (b) In any future proceeding arising under section 222(e) of the 
Communications Act or Sec. 64.2309, the burden of proof will be on the 
carrier to the extent it seeks a rate exceeding $0.04 per listing for 
base file subscriber list information or $0.06 per listing for updated 
subscriber list information.



Sec. 64.2337  Directory publishing purposes.

    (a) Except to the extent the carrier and directory publisher 
otherwise agree, a directory publisher shall use subscriber list 
information obtained pursuant to section 222(e) of the Communications 
Act or Sec. 64.2309 only for the purpose of publishing directories.
    (b) A directory publisher uses subscriber list information ``for the 
purpose of publishing directories'' if the publisher includes that 
information in a directory, or uses that information to determine what 
information should be included in a directory, solicit advertisers for a 
directory, or deliver directories.
    (c) A telecommunications carrier may require any person requesting 
subscriber list information pursuant to section 222(e) of the 
Communications Act or Sec. 64.2309 to certify that the publisher will 
use the information only for purposes of publishing a directory.
    (d) A carrier must provide subscriber list information to a 
requesting directory publisher even if the carrier believes that the 
directory publisher will use that information for purposes other than or 
in addition to directory publishing.



Sec. 64.2341  Record keeping.

    (a) A telecommunications carrier must retain, for at least one year 
after its expiration, each written contract that it has executed for the 
provision of subscriber list information for directory publishing 
purposes to itself, an affiliate, or an entity that publishes 
directories on the carrier's behalf.
    (b) A telecommunications carrier must maintain, for at least one 
year after the carrier provides subscriber list information for 
directory publishing purposes to itself, an affiliate, or an entity that 
publishes directories on the carrier's behalf, records of any of its 
rates, terms, and conditions for providing that subscriber list 
information which are not set forth in a written contract.
    (c) A carrier shall make the contracts and records described in 
paragraphs (a) and (b) of this section available, upon request, to the 
Commission and to any directory publisher that requests those contracts 
and records for the purpose of publishing a directory.



Sec. 64.2345  Primary advertising classification.

    A primary advertising classification is assigned at the time of the 
establishment of telephone exchange service if the carrier that provides 
telephone exchange service assigns the classification or if a tariff or 
State requirement obligates the carrier to provide yellow pages listings 
as part of telephone exchange service to businesses.



      Subpart Y--Truth-in-Billing Requirements for Common Carriers

    Source: 64 FR 34497, June 25, 1999, unless otherwise noted.

[[Page 309]]



Sec. 64.2400  Purpose and scope.

    (a) The purpose of these rules is to reduce slamming and other 
telecommunications fraud by setting standards for bills for 
telecommunications service. These rules are also intended to aid 
customers in understanding their telecommunications bills, and to 
provide them with the tools they need to make informed choices in the 
market for telecommunications service.
    (b) These rules shall apply to all telecommunications common 
carriers, except that Secs. 64.2001(a)(2), 64.2001(b), and 64.2001(c) 
shall not apply to providers of Commercial Mobile Radio Service as 
defined in Sec. 20.9 of this chapter, or to other providers of mobile 
service as defined in Sec. 20.7 of this chapter, unless the Commission 
determines otherwise in a further rulemaking.
    (c) Preemptive effect of rules. The requirements contained in this 
subpart are not intended to preempt the adoption or enforcement of 
consistent truth-in-billing requirements by the states.

[64 FR 34497, June 25, 1999; 64 FR 56177, Oct. 18, 2000; 65 FR 36637, 
June 9, 2000, as amended at 65 FR 43258, July 13, 2000]



Sec. 64.2401  Truth-in-Billing Requirements.

    (a) Bill organization. Telephone bills shall be clearly organized, 
and must comply with the following requirements:
    (1) The name of the service provider associated with each charge 
must be clearly and conspicuously identified on the telephone bill.
    (2) Where charges for two or more carriers appear on the same 
telephone bill, the charges must be separated by service provider.
    (3) The telephone bill must clearly and conspicuously identify any 
change in service provider, including identification of charges from any 
new service provider. For purpose of this subparagraph ``new service 
provider'' means a service provider that did not bill the subscriber for 
service during the service provider's last billing cycle. This 
definition shall include only providers that have continuing 
relationships with the subscriber that will result in periodic charges 
on the subscriber's bill, unless the service is subsequently canceled.
    (b) Descriptions of billed charges. Charges contained on telephone 
bills must be accompanied by a brief, clear, non-misleading, plain 
language description of the service or services rendered. The 
description must be sufficiently clear in presentation and specific 
enough in content so that customers can accurately assess that the 
services for which they are billed correspond to those that they have 
requested and received, and that the costs assessed for those services 
conform to their understanding of the price charged.
    (c) ``Deniable'' and ``Non-Deniable'' Charges. Where a bill contains 
charges for basic local service, in addition to other charges, the bill 
must distinguish between charges for which non-payment will result in 
disconnection of basic, local service, and charges for which non-payment 
will not result in such disconnection. The carrier must explain this 
distinction to the customer, and must clearly and conspicuously identify 
on the bill those charges for which non-payment will not result in 
disconnection of basic, local service. Carriers may also elect to devise 
other methods of informing consumers on the bill that they may contest 
charges prior to payment.
    (d) Clear and conspicuous disclosure of inquiry contacts. Telephone 
bills must contain clear and conspicuous disclosure of any information 
that the subscriber may need to make inquiries about, or contest, 
charges on the bill. Common carriers must prominently display on each 
bill a toll-free number or numbers by which subscribers may inquire or 
dispute any charges on the bill. A carrier may list a toll-free number 
for a billing agent, clearinghouse, or other third party, provided such 
party possesses sufficient information to answer questions concerning 
the subscriber's account and is fully authorized to resolve the 
consumer's complaints on the carrier's behalf. Where the subscriber does 
not receive a paper copy of his or her telephone bill, but instead 
accesses that bill only by e-mail or internet, the carrier may comply 
with this requirement by providing

[[Page 310]]

on the bill an e-mail or web site address. Each carrier must make a 
business address available upon request from a consumer.
    (e) Definition of clear and conspicuous. For purposes of this 
section, ``clear and conspicuous'' means notice that would be apparent 
to the reasonable consumer.

    Note to Sec. 64.2401: The following provisions, for which compliance 
would have been required as of April 1, 2000, have been stayed until 
such time as the amendments to Sec. 64.2401(a), (d), and (e) become 
effective (following their approval by the Office of Management and 
Budget and the publication by the Commission of a document in the 
Federal Register announcing the effective date of these amended rules) 
and will be superceded by the amended rules: (1) That portion of 
Sec. 64.2401(a)(2) that requires that each carrier's ``telephone bill 
must provide clear and conspicuous notification of any change in service 
provider, including notification to the customer that a new provider has 
begun providing service,'' (2) Sec. 64.2401(a)(2)(ii), and (3) 
Sec. 64.2401(d).

[64 FR 34497, June 25, 1999, as amended at 65 FR 43258, July 13, 2000]



    Subpart Z--Prohibition on Exclusive Telecommunications Contracts

    Source: 66 FR 2334, Jan. 11, 2001, unless otherwise noted.



Sec. 64.2500  Prohibited agreements.

    No common carrier shall enter into any contract, written or oral, 
that would in any way restrict the right of any commercial multiunit 
premises owner, or any agent or representative thereof, to permit any 
other common carrier to access and serve commercial tenants on that 
premises.



Sec. 64.2501  Scope of limitation.

    For the purposes of this subpart, a multiunit premises is any 
contiguous area under common ownership or control that contains two or 
more distinct units. A commercial multiunit premises is any multiunit 
premises that is predominantly used for non-residential purposes, 
including for-profit, non-profit, and governmental uses. Nothing in this 
subpart shall be construed to forbid a common carrier from entering into 
an exclusive contract to serve only residential customers on any 
premises.



Sec. 64.2502  Effect of state law or regulation.

    This subpart shall not preempt any state law or state regulation 
that requires a governmental entity to enter into a contract or 
understanding with a common carrier which would restrict such 
governmental entity's right to obtain telecommunications service from 
another common carrier.



            Subpart AA--Universal Emergency Telephone Number

    Source: 67 FR 1649, Jan. 14, 2002, unless otherwise noted.

    Authority: 47 U.S.C. 151, 154(i), 154(j), 157, 160, 210, 202, 208, 
214, 251(e), 301, 303, 308, 309(j), and 310.



Sec. 64.3000  Definitions.

    (a) 911 calls. Any call initiated by an end user by dialing 911 for 
the purpose of accessing an emergency service provider. For wireless 
carriers, all 911 calls include those they are required to transmit 
pursuant to Sec. 20.18 of the Commission's rules.
    (b) Appropriate local emergency authority. An emergency answering 
point that has not been officially designated as a Public Safety 
Answering Point (PSAP), but has the capability of receiving 911 calls 
and either dispatching emergency services personnel or, if necessary, 
relaying the call to another emergency service provider. An appropriate 
local emergency authority may include, but is not limited to, an 
existing local law enforcement authority, such as the police, county 
sheriff, local emergency medical services provider, or fire department.
    (c) Public Safety Answering Point (PSAP). A facility that has been 
designated to receive 911 calls and route them to emergency services 
personnel.
    (d) Statewide default answering point. An emergency answering point 
designated by the State to receive 911 calls for either the entire State 
or those portions of the State not otherwise served by a local PSAP.

[[Page 311]]



Sec. 64.3001  Obligation to transmit 911 calls.

    All telecommunications carriers shall transmit all 911 calls to a 
PSAP, to a designated statewide default answering point, or to an 
appropriate local emergency authority as set forth in Sec. 64.3002.



Sec. 64.3002  Transition to 911 as the universal emergency telephone number.

    As of December 11, 2001, except where 911 is already established as 
the exclusive emergency number to reach a PSAP within a given 
jurisdiction, telecommunications carriers shall comply with the 
following transition periods:
    (a) Where a PSAP has been designated, telecommunications carriers 
shall complete all translation and routing necessary to deliver 911 
calls to a PSAP no later than September 11, 2002.
    (b) Where no PSAP has been designated, telecommunications carriers 
shall complete all translation and routing necessary to deliver 911 
calls to the statewide default answering point no later than September 
11, 2002.
    (c) Where neither a PSAP nor a statewide default answering point has 
been designated, telecommunications carriers shall complete the 
translation and routing necessary to deliver 911 calls to an appropriate 
local emergency authority, within nine months of a request by the State 
or locality.
    (d) Where no PSAP nor statewide default answering point has been 
designated, and no appropriate local emergency authority has been 
selected by an authorized state or local entity, telecommunications 
carriers shall identify an appropriate local emergency authority, based 
on the exercise of reasonable judgment, and complete all translation and 
routing necessary to deliver 911 calls to such appropriate local 
emergency authority no later than September 11, 2002.
    (e) Once a PSAP is designated for an area where none had existed as 
of December 11, 2001, telecommunications carriers shall complete the 
translation and routing necessary to deliver 911 calls to that PSAP 
within nine months of that designation.



Sec. 64.3003  Obligation for providing a permissive dialing period.

    Upon completion of translation and routing of 911 calls to a PSAP, a 
statewide default answering point, to an appropriate local emergency 
authority, or, where no PSAP nor statewide default answering point has 
been designated and no appropriate local emergency authority has been 
selected by an authorized state or local entity, to an appropriate local 
emergency authority, identified by a telecommunications carrier based on 
the exercise of reasonable judgment, the telecommunications carrier 
shall provide permissive dialing between 911 and any other seven-or ten-
digit emergency number or an abbreviated dialing code other than 911 
that the public has previously used to reach emergency service providers 
until the appropriate State or local jurisdiction determines to phase 
out the use of such seven-or ten-digit number entirely and use 911 
exclusively.



Sec. 64.3004  Obligation for providing an intercept message.

    Upon termination of permissive dialing, as provided under 
Sec. 64.3003, telecommunications carriers shall provide a standard 
intercept message announcement that interrupts calls placed to the 
emergency service provider using either a seven-or ten-digit emergency 
number or an abbreviated dialing code other than 911 and informs the 
caller of the dialing code change.

Appendix A to Part 64--Telecommunications Service Priority (TSP) System 
           for National Security Emergency Preparedness (NSEP)

                        1. Purpose and Authority

    a. This appendix establishes policies and procedures and assigns 
responsibilities for the National Security Emergency Preparedness (NSEP) 
Telecommunications Service Priority (TSP) System. The NSEP TSP System 
authorizes priority treatment to certain domestic telecommunications 
services (including portions of U.S. international telecommunication 
services provided by U.S. service vendors) for which provisioning or 
restoration priority (RP) levels are requested, assigned, and approved 
in accordance with this appendix.
    b. This appendix is issued pursuant to sections 1, 4(i), 201 through 
205 and 303(r) of the

[[Page 312]]

Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 201 
through 205 and 303(r). These sections grant to the Federal 
Communications Commission (FCC) the authority over the assignment and 
approval of priorities for provisioning and restoration of common 
carrier-provided telecommunications services. Under section 706 of the 
Communications Act, this authority may be superseded, and expanded to 
include non-common carrier telecommunication services, by the war 
emergency powers of the President of the United States. This appendix 
provides the Commission's Order to telecommunication service vendors and 
users to comply with policies and procedures establishing the NSEP TSP 
System, until such policies and procedures are superseded by the 
President's war emergency powers. This appendix is intended to be read 
in conjunction with regulations and procedures that the Executive Office 
of the President issues (1) to implement responsibilities assigned in 
section 6(b) of this appendix, or (2) for use in the event this appendix 
is superseded by the President's war emergency powers.
    c. Together, this appendix and the regulations and procedures issued 
by the Executive Office of the President establish one uniform system of 
priorities for provisioning and restoration of NSEP telecommunication 
services both before and after invocation of the President's war 
emergency powers. In order that government and industry resources may be 
used effectively under all conditions, a single set of rules, 
regulations, and procedures is necessary, and they must be applied on a 
day-to-day basis to all NSEP services so that the priorities they 
establish can be implemented at once when the need arises.
    * In sections 2(a)(2) and 2(b)(2) of Executive Order No. 12472, 
``Assignment of National Security and Emergency Preparedness 
Telecommunications Functions'' April 3, 1984 (49 FR 13471 (1984)), the 
President assigned to the Director, Office of Science and Technology 
Policy, certain NSEP telecommunication resource management 
responsibilities. The term ``Executive Office of the President'' as used 
in this appendix refers to the official or organization designated by 
the President to act on his behalf.

                     2. Applicability and Revocation

    a. This appendix applies to NSEP telecommunications services:
    (1) For which initial or revised priority level assignments are 
requested pursuant to section 8 of this appendix.
    (2) Which were assigned restoration priorities under the provision 
of FCC Order 80-581; 81 FCC 2d 441 (1980); 47 CFR part 64, appendix A, 
``Priority System for the Restoration of Common Carrier Provided 
Intercity Private Line Services''; and are being resubmitted for 
priority level assignments pursuant to section 10 of this appendix. 
(Such services will retain assigned restoration priorities until a 
resubmission for a TSP assignment is completed or until the existing RP 
rules are terminated.)
    b. FCC Order 80-581 will continue to apply to all other intercity, 
private line circuits assigned restoration priorities thereunder until 
the fully operating capability date of this appendix, 30 months after 
the initial operating capability date referred to in subsection d of 
this section.
    c. In addition, FCC Order, ``Precedence System for Public 
Correspondence Services Provided by the Communications Common Carriers'' 
(34 FR 17292 (1969)); (47 CFR part 64, appendix B), is revoked as of the 
effective date of this appendix.
    d. The initial operating capability (IOC) date for NSEP TSP will be 
nine months after release in the Federal Register of the FCC's order 
following review of procedures submitted by the Executive Office of the 
President. On this IOC date requests for priority assignments generally 
will be accepted only by the Executive Office of the President.

                             3. Definitions

    As used in this part:
    a. Assignment means the designation of priority level(s) for a 
defined NSEP telecommunications service for a specified time period.
    b. Audit means a quality assurance review in response to identified 
problems.
    c. Government refers to the Federal government or any foreign, 
state, county, municipal or other local government agency or 
organization. Specific qualifications will be supplied whenever 
reference to a particular level of government is intended (e.g., 
``Federal government'', ``state government''). ``Foreign government'' 
means any sovereign empire, kingdom, state, or independent political 
community, including foreign diplomatic and consular establishments and 
coalitions or associations of governments (e.g., North Atlantic Treaty 
Organization (NATO), Southeast Asian Treaty Organization (SEATO), 
Organization of American States (OAS), and government agencies or 
organization (e.g., Pan American Union, International Postal Union, and 
International Monetary Fund)).
    d. National Communications System (NCS) refers to that organization 
established by the President in Executive Order No. 12472, ``Assignment 
of National Security and Emergency Preparedness Telecommunications 
Functions,'' April 3, 1984, 49 FR 13471 (1984).
    e. National Coordinating Center (NCC) refers to the joint 
telecommunications industry-Federal government operation established by 
the National Communications System to assist in the initiation, 
coordination, restoration, and reconstitution of NSEP telecommunication 
services or facilities.

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    f. National Security Emergency Preparedness (NSEP) 
telecommunications services, or ``NSEP services,'' means 
telecommunication services which are used to maintain a state of 
readiness or to respond to and manage any event or crisis (local, 
national, or international), which causes or could cause injury or harm 
to the population, damage to or loss of property, or degrades or 
threatens the NSEP posture of the United States. These services fall 
into two specific categories, Emergency NSEP and Essential NSEP, and are 
assigned priority levels pursuant to section 9 of this appendix.
    g. NSEP treatment refers to the provisioning of a telecommunication 
service before others based on the provisioning priority level assigned 
by the Executive Office of the President.
    h. Priority action means assignment, revision, revocation, or 
revalidation by the Executive Office of the President of a priority 
level associated with an NSEP telecommunications service.
    i. Priority level means the level that may be assigned to an NSEP 
telecommunications service specifying the order in which provisioning or 
restoration of the service is to occur relative to other NSEP and/or 
non-NSEP telecommunication services. Priority levels authorized by this 
appendix are designated (highest to lowest) ``E,'' ``1,'' ``2,'' ``3,'' 
``4,'' and ``5,'' for provisioning and ``1,'' ``2,'' ``3,'' ``4,'' and 
``5,'' for restoration.
    j. Priority level assignment means the priority level(s) designated 
for the provisioning and/or restoration of a particular NSEP 
telecommunications service under section 9 of this appendix.
    k. Private NSEP telecommunications services include non-common 
carrier telecommunications services including private line, virtual 
private line, and private switched network services.
    l. Provisioning means the act of supplying telecommunications 
service to a user, including all associated transmission, wiring and 
equipment. As used herein, ``provisioning'' and ``initiation'' are 
synonymous and include altering the state of an existing priority 
service or capability.
    m. Public switched NSEP telecommunications services include those 
NSEP telecommunications services utilizing public switched networks. 
Such services may include both interexchange and intraexchange network 
facilities (e.g., switching systems, interoffice trunks and subscriber 
loops).
    n. Reconciliation means the comparison of NSEP service information 
and the resolution of identified discrepancies.
    o. Restoration means the repair or returning to service of one or 
more telecommunication services that have experienced a service outage 
or are unusable for any reason, including a damaged or impaired 
telecommunications facility. Such repair or returning to service may be 
done by patching, rerouting, substitution of component parts or 
pathways, and other means, as determined necessary by a service vendor.
    p. Revalidation means the rejustification by a service user of a 
priority level assignment. This may result in extension by the Executive 
Office of the President of the expiration date associated with the 
priority level assignment.
    q. Revision means the change of priority level assignment for an 
NSEP telecommunications service. This includes any extension of an 
existing priority level assignment to an expanded NSEP service.
    r. Revocation means the elimination of a priority level assignment 
when it is no longer valid. All priority level assignments for an NSEP 
service are revoked upon service termination.
    s. Service identification refers to the information uniquely 
identifying an NSEP telecommunications service to the service vendor 
and/or service user.
    t. Service user refers to any individual or organization (including 
a service vendor) supported by a telecommunications service for which a 
priority level has been requested or assigned pursuant to section 8 or 9 
of this appendix.
    u. Service vendor refers to any person, association, partnership, 
corporation, organization, or other entity (including common carriers 
and government organizations) that offers to supply any 
telecommunications equipment, facilities, or services (including 
customer premises equipment and wiring) or combination thereof. The term 
includes resale carriers, prime contractors, subcontractors, and 
interconnecting carriers.
    v. Spare circuits or services refers to those not being used or 
contracted for by any customer.
    w. Telecommunication services means the transmission, emission, or 
reception of signals, signs, writing, images, sounds, or intelligence of 
any nature, by wire, cable, satellite, fiber optics, laser, radio, 
visual or other electronic, electric, electromagnetic, or acoustically 
coupled means, or any combination thereof. The term can include 
necessary telecommunication facilities.
    x. Telecommunications Service Priority (TSP) system user refers to 
any individual, organization, or activity that interacts with the NSEP 
TSP System.

                                4. Scope

    a. Domestic NSEP services. The NSEP TSP System and procedures 
established by this appendix authorize priority treatment to the 
following domestic telecommunication services (including portions of 
U.S. international telecommunication services provided by U.S. vendors) 
for which provisioning or restoration priority levels are requested, 
assigned,

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and approved in accordance with this appendix:
    (1) Common carrier services which are:
    (a) Interstate or foreign telecommunications services,
    (b) Intrastate telecommunication services inseparable from 
interstate or foreign telecommunications services, and instrastate 
telecommunication services to which priority levels are assigned 
pursuant to section 9 of this appendix.

    Note: Initially, the NSEP TSP System's applicability to public 
switched services is limited to (a) provisioning of such services (e.g., 
business, centrex, cellular, foreign exchange, Wide Area Telephone 
Service (WATS) and other services that the selected vendor is able to 
provision) and (b) restoration of services that the selected vendor is 
able to restore.
    (2) Services which are provided by government and/or non-common 
carriers and are interconnected to common carrier services assigned a 
priority level pursuant to section 9 of this appendix.
    b. Control services and orderwires. The NSEP TSP System and 
procedures established by this appendix are not applicable to authorize 
priority treatment to control services or orderwires owned by a service 
vendor and needed for provisioning, restoration, or maintenance of other 
services owned by that service vendor. Such control services and 
orderwires shall have priority provisioning and restoration over all 
other telecommunication services (including NSEP services) and shall be 
exempt from preemption. However, the NSEP TSP System and procedures 
established by this appendix are applicable to control services or 
orderwires leased by a service vendor.
    c. Other services. The NSEP TSP System may apply, at the discretion 
of and upon special arrangements by the NSEP TSP System users involved, 
to authorize priority treatment to the following telecommunication 
services:
    (1) Government or non-common carrier services which are not 
connected to common carrier provided services assigned a priority level 
pursuant to section 9 of this appendix.
    (2) Portions of U.S. international services which are provided by 
foreign correspondents. (U.S. telecommunication service vendors are 
encouraged to ensure that relevant operating arrangements are consistent 
to the maximum extent practicable with the NSEP TSP System. If such 
arrangements do not exist, U.S. telecommunication service vendors should 
handle service provisioning and/or restoration in accordance with any 
system acceptable to their foreign correspondents which comes closest to 
meeting the procedures established in this appendix.)

                                5. Policy

    The NSEP TSP System is the regulatory, administrative, and 
operational system authorizing and providing for priority treatment, 
i.e., provisioning and restoration, of NSEP telecommunication services. 
As such, it establishes the framework for telecommunication service 
vendors to provision, restore, or otherwise act on a priority basis to 
ensure effective NSEP telecommunication services. The NSEP TSP System 
allows the assignment of priority levels to any NSEP service across 
three time periods, or stress conditions: Peacetime/Crisis/
Mobilizations, Attack/War, and Post-Attack/Recovery. Although priority 
levels normally will be assigned by the Executive Office of the 
President and retained by service vendors only for the current time 
period, they may be preassigned for the other two time periods at the 
request of service users who are able to identify and justify in 
advance, their wartime or post-attack NSEP telecommunication 
requirements. Absent such preassigned priority levels for the Attack/War 
and Post-Attack/Recovery periods, priority level assignments for the 
Peacetime/Crisis/Mobilization period will remain in effect. At all 
times, priority level assignments will be subject to revision by the FCC 
or (on an interim basis) the Executive Office of the President, based 
upon changing NSEP needs. No other system of telecommunication service 
priorities which conflicts with the NSEP TSP System is authorized.

                           6. Responsibilities

    a. The FCC will:
    (1) Provide regulatory oversight of implementation of the NSEP TSP 
System.
    (2) Enforce NSEP TSP System rules and regulations, which are 
contained in this appendix.
    (3) Act as final authority for approval, revision, or disapproval of 
priority actions by the Executive Office of the President and adjudicate 
disputes regarding either priority actions or denials of requests for 
priority actions by the Executive Office of the President, until 
superseded by the President's war emergency powers under section 706 of 
the Communications Act.
    (4) Function (on a discretionary basis) as a sponsoring Federal 
organization. (See section 6(c) below.)
    b. The Executive Office of the President will:
    (1) During exercise of the President's war emergency powers under 
section 706 of the Communications Act, act as the final approval 
authority for priority actions or denials of requests for priority 
actions, adjudicating any disputes.
    (2) Until the exercise of the President's war emergency powers, 
administer the NSEP TSP System which includes:

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    (a) Receiving, processing, and evaluating requests for priority 
actions from service users, or sponsoring Federal government 
organizations on behalf of service users (e.g., Department of State or 
Defense on behalf of foreign governments, Federal Emergency Management 
Agency on behalf of state and local governments, and any Federal 
organization on behalf of private industry entities). Action on such 
requests will be completed within 30 days of receipt.
    (b) Assigning, revising, revalidating, or revoking priority levels 
as necessary or upon request of service users concerned, and denying 
requests for priority actions as necessary, using the categories and 
criteria specified in section 12 of this appendix. Action on such 
requests will be completed within 30 days of receipt.
    (c) Maintaining data on priority level assignments.
    (d) Periodically forwarding to the FCC lists of priority actions by 
the Executive Office of the President for review and approval.
    (e) Periodically initiating reconciliation.
    (f) Testing and evaluating the NSEP TSP System for effectiveness.
    (g) Conducting audits as necessary. Any Telecommunications Service 
Priority (TSP) System user may request the Executive Office of the 
President to conduct an audit.
    (h) Issuing, subject to review by the FCC, regulations and 
procedures supplemental to and consistent with this appendix regarding 
operation and use of the NSEP TSP System.
    (i) Serving as a centralized point-of-contact for collecting and 
disseminating to all interested parties (consistent with requirements 
for treatment of classified and proprietary material) information 
concerning use and abuse of the NSEP TSP System.
    (j) Establishing and assisting a TSP System Oversight Committee to 
identify and review any problems developing in the system and recommend 
actions to correct them or prevent recurrence. In addition to 
representatives of the Executive Office of the President, 
representatives from private industry (including telecommunication 
service vendors), state and local governments, the FCC, and other 
organizations may be appointed to that Committee.
    (k) Reporting at least quarterly to the FCC and TSP System Oversight 
Committee, together with any recommendations for action, the operational 
status of and trends in the NSEP TSP System, including:
    (i) Numbers of requests processed for the various priority actions, 
and the priority levels assigned.
    (ii) Relative percentages of services assigned to each priority 
level under each NSEP category and subcategory.
    (iii) Any apparent serious misassignment or abuse of priority level 
assignments.
    (iv) Any existing or developing problem.
    (l) Submitting semi-annually to the FCC and TSP System Oversight 
Committee a summary report identifying the time and event associated 
with each invocation of NSEP treatment under section 9(c) of this 
appendix, whether the NSEP service requirement was adequately handled, 
and whether any additional charges were incurred. These reports will be 
due by April 30th for the preceding July through December and by October 
31 for the preceding January through June time periods.
    (m) All reports submitted to the FCC should be directed to Chief, 
Wireline Competition Bureau, Washington, DC 20554.
    (3) Function (on a discretionary basis) as a sponsoring Federal 
organization. (See section 6(c) below.)
    c. Sponsoring Federal organizations will:
    (1) Review and decide whether to sponsor foreign, state, and local 
government and private industry (including telecommunication service 
vendors) requests for priority actions. Federal organizations will 
forward sponsored requests with recommendations for disposition to the 
Executive Office of the President. Recommendations will be based on the 
categories and criteria in section 12 of this appendix.
    (2) Forward notification of priority actions or denials of requests 
for priority actions from the Executive Office of the President to the 
requesting foreign, state, and local government and private industry 
entities.
    (3) Cooperate with the Executive Office of the President during 
reconciliation, revalidation, and audits.
    (4) Comply with any regulations and procedures supplemental to and 
consistent with this appendix which are issued by the Executive Office 
of the President.
    d. Service users will:
    (1) Identify services requiring priority level assignments and 
request and justify priority level assignments in accordance with this 
appendix and any supplemental regulations and procedures issued by the 
Executive Office of the President that are consistent with this 
appendix.
    (2) Request and justify revalidation of all priority level 
assignments at least every three years.
    (3) For services assigned priority levels, ensure (through 
contractual means or otherwise) availability of customer premises 
equipment and wiring necessary for end-to-end service operation by the 
service due date, and continued operation; and, for such services in the 
Emergency NSEP category, by the time that vendors are prepared to 
provide the services. Additionally, designate the organization 
responsible for the service on an end-to-end basis.
    (4) Be prepared to accept services assigned priority levels by the 
service due dates or, for services in the Emergency NSEP category, when 
they are available.

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    (5) Pay vendors any authorized costs associated with services that 
are assigned priority levels.
    (6) Report to vendors any failed or unusable services that are 
assigned priority levels.
    (7) Designate a 24-hour point-of-contact for matters concerning each 
request for priority action and apprise the Executive Office of the 
President thereof.
    (8) Upon termination of services that are assigned priority levels, 
or circumstances warranting revisions in priority level assignment 
(e.g., expansion of service), request and justify revocation or 
revision.
    (9) When NSEP treatment is invoked under section 9(c) of this 
appendix, within 90 days following provisioning of the service involved, 
forward to the National Coordinating Center (see section 3(e) of this 
appendix) complete information identifying the time and event associated 
with the invocation and regarding whether the NSEP service requirement 
was adequately handled and whether any additional charges were incurred.
    (10) Cooperate with the Executive Office of the President during 
reconciliation, revalidation, and audits.
    (11) Comply with any regulations and procedures supplemental to and 
consistent with this appendix that are issued by the Executive Office of 
the President.
    e. Non-federal service users, in addition to responsibilities 
prescribed above in section 6(d), will obtain a sponsoring Federal 
organization for all requests for priority actions. If unable to find a 
sponsoring Federal organization, a non-federal service user may submit 
its request, which must include documentation of attempts made to obtain 
a sponsor and reasons given by the sponsor for its refusal, directly to 
the Executive Office of the President.
    f. Service vendors will:
    (1) When NSEP treatment is invoked by service users, provision NSEP 
telecommunication services before non-NSEP services, based on priority 
level assignments made by the Executive Office of the President. 
Provisioning will require service vendors to:
    (a) Allocate resources to ensure best efforts to provide NSEP 
services by the time required. When limited resources constrain response 
capability, vendors will address conflicts for resources by:
    (i) Providing NSEP services in order of provisioning priority level 
assignment (i.e., ``E'', ``1'', ``2'', ``3'', ``4'', or ``5'');
    (ii) Providing Emergency NSEP services (i.e., those assigned 
provisioning priority level ``E'') in order of receipt of the service 
requests;
    (iii) Providing Essential NSEP services (i.e., those assigned 
priority levels ``1'', ``2'', ``3'', ``4'', or ``5'') that have the same 
provisioning priority level in order of service due dates; and
    (iv) Referring any conflicts which cannot be resolved (to the mutual 
satisfaction of servicer vendors and users) to the Executive Office of 
the President for resolution.
    (b) Comply with NSEP service requests by:
    (i) Allocating resources necessary to provide Emergency NSEP 
services as soon as possible, dispatching outside normal business hours 
when necessary;
    (ii) Ensuring best efforts to meet requested service dates for 
Essential NSEP services, negotiating a mutually (customer and vendor) 
acceptable service due date when the requested service due date cannot 
be met; and
    (iii) Seeking National Coordinating Center (NCC) assistance as 
authorized under the NCC Charter (see section 1.3, NCC Charter, dated 
October 9, 1985).
    (2) Restore NSEP telecommunications services which suffer outage, or 
are reported as unusable or otherwise in need of restoration, before 
non-NSEP services, based on restoration priority level assignments. 
(Note: For broadband or multiple service facilities, restoration is 
permitted even though it might result in restoration of services 
assigned no or lower priority levels along with, or sometimes ahead of, 
some higher priority level services.) Restoration will require service 
vendors to restore NSEP services in order of restoration priority level 
assignment (i.e., ``1'', ``2'', ``3'', ``4'', or ``5'') by:
    (a) Allocating available resources to restore NSEP services as 
quickly as practicable, dispatching outside normal business hours to 
restore services assigned priority levels ``1'', ``2'', and ``3'' when 
necessary, and services assigned priority level ``4'' and ``5'' when the 
next business day is more than 24 hours away;
    (b) Restoring NSEP services assigned the same restoration priority 
level based upon which can be first restored. (However, restoration 
actions in progress should not normally be interrupted to restore 
another NSEP service assigned the same restoration priority level);
    (c) Patching and/or rerouting NSEP services assigned restoration 
priority levels from ``1'' through ``5,'' when use of patching and/or 
rerouting will hasten restoration;
    (d) Seeking National Coordinating Center (NCC) assistance authorized 
under the NCC Charter; and
    (e) Referring any conflicts which cannot be resolved (to the mutual 
satisfaction of service vendors and users) to the Executive Office of 
the President for resolution.
    (3) Respond to provisioning requests of customers and/or other 
service vendors, and to restoration priority level assignments when an 
NSEP service suffers an outage or is reported as unusable, by:
    (a) Ensuring that vendor personnel understand their responsibilities 
to handle NSEP provisioning requests and to restore NSEP service; and

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    (b) Providing a 24-hour point-of-contact for receiving provisioning 
requests for Emergency NSEP services and reports of NSEP service outages 
or unusability.
    (c) Seek verification from an authorized entity if legitimacy of a 
priority level assignment or provisioning request for an NSEP service is 
in doubt. However, processing of Emergency NSEP service requests will 
not be delayed for verification purposes.
    (4) Cooperate with other service vendors involved in provisioning or 
restoring a portion of an NSEP service by honoring provisioning or 
restoration priority level assignments, or requests for assistance to 
provision or restore NSEP services, as detailed in sections 6(f)(1), 
(2), and (3) above.
    (5) All service vendors, including resale carriers, are required to 
ensure that service vendors supplying underlying facilities are provided 
information necessary to implement priority treatment of facilities that 
support NSEP services.
    (6) Preempt, when necessary, existing services to provide an NSEP 
service as authorized in section 7 of this appendix.
    (7) Assist in ensuring that priority level assignments of NSEP 
services are accurately identified ``end-to-end'' by:
    (a) Seeking verification from an authorized Federal government 
entity if the legitimacy of the restoration priority level assignment is 
in doubt;
    (b) Providing to subcontractors and/or interconnecting carriers the 
restoration priority level assigned to a service;
    (c) Supplying, to the Executive Office of the President, when acting 
as a prime contractor to a service user, confirmation information 
regarding NSEP service completion for that portion of the service they 
have contracted to supply;
    (d) Supplying, to the Executive Office of the President, NSEP 
service information for the purpose of reconciliation.
    (e) Cooperating with the Executive Office of the President during 
reconciliation.
    (f) Periodically initiating reconciliation with their subcontractors 
and arranging for subsequent subcontractors to cooperate in the 
reconciliation process.
    (8) Receive compensation for costs authorized through tariffs or 
contracts by:
    (a) Provisions contained in properly filed state or Federal tariffs; 
or
    (b) Provisions of properly negotiated contracts where the carrier is 
not required to file tariffs.
    (9) Provision or restore only the portions of services for which 
they have agreed to be responsible (i.e., have contracted to supply), 
unless the President's war emergency powers under section 706 of the 
Communications Act are in effect.
    (10) Cooperate withe the Executive Office of the President during 
audits.
    (11) Comply with any regulations or procedures supplemental to and 
consistent with this appendix that are issued by the Executive Office of 
the President and reviewed by the FCC.
    (12) Insure that at all times a reasonable number of public switched 
network services are made available for public use.
    (13) Not disclose information concerning NSEP services they provide 
to those not having a need-to-know or might use the information for 
competitive advantage.

                   7. Preemption of Existing Services

    When necessary to provision or restore NSEP services, service 
vendors may preempt services they provide as specified below. ``User'' 
as used in this Section means any user of a telecommunications service, 
including both NSEP and non-NSEP services. Prior consent by a preempted 
user is not required.
    a. The sequence in which existing services may be preempted to 
provision NSEP services assigned a provisioning priority level ``E'' or 
restore NSEP services assigned a restoration priority level from ``1'' 
through ``5'':
    (1) Non-NSEP services: If suitable spare services are not available, 
then, based on the considerations in this appendix and the service 
vendor's best judgment, non-NSEP services will be preempted. After 
ensuring a sufficient number of public switched services are available 
for public use, based on the service vendor's best judgment, such 
services may be used to satisfy a requirement for provisioning or 
restoring NSEP services.
    (2) NSEP services: If no suitable spare or non-NSEP services are 
available, then existing NSEP services may be preempted to provision or 
restore NSEP services with higher priority level assignments. When this 
is necessary, NSEP services will be selected for preemption in the 
inverse order of priority level assignment.
    (3) Service vendors who are preempting services will ensure their 
best effort to notify the service user of the preempted service and 
state the reason for and estimated duration of the preemption.
    b. Service vendors may, based on their best judgment, determine the 
sequence in which existing services may be preempted to provision NSEP 
services assigned a provisioning priority of ``1'' through ``5''. 
Preemption is not subject to the consent of the user whose service will 
be preempted.
    8. Requests for Priority Assignments.
    All service users are required to submit requests for priority 
actions through the Executive Office of the President in the format and 
following the procedures prescribed by that Office.

[[Page 318]]

     9. Assignment, Approval, Use, and Invocation of Priority Levels

    a. Assignment and approval of priority levels. Priority level 
assignments will be based upon the categories and criteria specified in 
section 12 of this appendix. A priority level assignment made by the 
Executive Office of the President will serve as that Office's 
recommendation to the FCC. Until the President's war emergency powers 
are invoked, priority level assignments must be approved by the FCC. 
However, service vendors are ordered to implement any priority level 
assignments that are pending FCC approval.
    After invocation of the President's war emergency powers, these 
requirements may be superseded by other procedures issued by the 
Executive Office of the President.
    b. Use of Priority Level Assignments.
    (1) All provisioning and restoration priority level assignments for 
services in the Emergency NSEP category will be included in initial 
service orders to vendors. Provisioning priority level assignments for 
Essential NSEP services, however, will not usually be included in 
initial service orders to vendors. NSEP treatment for Essential NSEP 
services will be invoked and provisioning priority level assignments 
will be conveyed to service vendors only if the vendors cannot meet 
needed service dates through the normal provisioning process.
    (2) Any revision or revocation of either provisioning or restoration 
priority level assignments will also be transmitted to vendors.
    (3) Service vendors shall accept priority levels and/or revisions 
only after assignment by the Executive Office of the President.

    Note: Service vendors acting as prime contractors will accept 
assigned NSEP priority levels only when they are accompanied by the 
Executive Office of the President designated service identification, 
i.e., TSP Authorization Code. However, service vendors are authorized to 
accept priority levels and/or revisions from users and contracting 
activities before assignment by the Executive Office of the President 
when service vendor, user, and contracting activities are unable to 
communicate with either the Executive Office of the President or the 
FCC. Processing of Emergency NSEP service requests will not be delayed 
for verification purposes.

    c. Invocation of NSEP treatment. To invoke NSEP treatment for the 
priority provisioning of an NSEP telecommunications service, an 
authorized Federal official either within, or acting on behalf of, the 
service user's organization must make a written or oral declaration to 
concerned service vendor(s) and the Executive Office of the President 
that NSEP treatment is being invoked. Authorized Federal officials 
include the head or director of a Federal agency, commander of a 
unified/specified military command, chief of a military service, or 
commander of a major military command; the delegates of any of the 
foregoing; or any other officials as specified in supplemental 
regulations or procedures issued by the Executive Office of the 
President. The authority to invoke NSEP treatment may be delegated only 
to a general or flag officer of a military service, civilian employee of 
equivalent grade (e.g., Senior Executive Service member), Federal 
Coordinating Officer or Federal Emergency Communications Coordinator/
Manager, or any other such officials specified in supplemental 
regulations or procedures issued by the Executive Office of the 
President. Delegates must be designated as such in writing, and written 
or oral invocations must be accomplished, in accordance with 
supplemental regulations or procedures issued by the Executive Office of 
the President.

 10. Resubmission of Circuits Presently Assigned Restoration Priorities

    All circuits assigned restoration priorities must be reviewed for 
eligibility for initial restoration priority level assignment under the 
provisions of this appendix. Circuits currently assigned restoration 
priorities, and for which restoration priority level assignments are 
requested under section 8 of this appendix, will be resubmitted to the 
Executive Office of the President. To resubmit such circuits, service 
users will comply with applicable provisions of section 6(d) of this 
appendix.

                               11. Appeal

    Service users or sponsoring Federal organizations may appeal any 
priority level assignment, denial, revision, revocation, approval, or 
disapproval to the Executive Office of the President within 30 days of 
notification to the service user. The appellant must use the form or 
format required by the Executive Office of the President and must serve 
the FCC with a copy of its appeal. The Executive Office of the President 
will act on the appeal within 90 days of receipt. Service users and 
sponsoring Federal organizations may only then appeal directly to the 
FCC. Such FCC appeal must be filed within 30 days of notification of the 
Executive Office of the President's decision on appeal. Additionally, 
the Executive Office of the President may appeal any FCC revisions, 
approvals, or disapprovals to the FCC. All appeals to the FCC must be 
submitted using the form or format required. The party filing its appeal 
with the FCC must include factual details supporting its claim and must 
serve a copy on the Executive Office of the President and any other 
party directly involved. Such party may file a response within 20 days, 
and replies may be

[[Page 319]]

filed within 10 days thereafter. The Commission will not issue public 
notices of such submissions. The Commission will provide notice of its 
decision to the parties of record. Any appeals to the Executive Office 
of the President that include a claim of new information that has not 
been presented before for consideration may be submitted at any time.

      12. NSEP TSP System Categories, Criteria, and Priority Levels

    a. General. NSEP TSP System categories and criteria, and permissible 
priority level assignments, are defined and explained below.
    (1) The Essential NSEP category has four subcategories: National 
Security Leadership; National Security Posture and U.S. Population 
Attack Warning; Public Health, Safety, and Maintenance of Law and Order; 
and Public Welfare and Maintenance of National Economic Posture. Each 
subcategory has its own criteria. Criteria are also shown for the 
Emergency NSEP category, which has no sub-categories.
    (2) Priority levels of ``1,'' ``2,'' ``3,'' ``4,'' and ``5'' may be 
assigned for provisioning and/or restoration of Essential NSEP 
telecommunication services. However, for Emergency NSEP 
telecommunications services, a priority level ``E'' is assigned for 
provisioning. A restoration priority level from ``1'' through ``5'' may 
be assigned if an Emergency NSEP service also qualifies for such a 
restoration priority level under the Essential NSEP category.
    (3) The NSEP TSP System allows the assignment of priority levels to 
any NSEP telecommunications service across three time periods, or stress 
conditions: Peacetime/Crisis/Mobilization, Attack/War, and Post-Attack/
Recovery. Priority levels will normally be assigned only for the first 
time period. These assigned priority levels will apply through the onset 
of any attack, but it is expected that they would later be revised by 
surviving authorized telecommunication resource managers within the 
Executive Office of the President based upon specific facts and 
circumstances arising during the Attack/War and Post-Attack/Recovery 
time periods.
    (4) Service users may, for their own internal use, assign 
subpriorities to their services assigned priority levels. Receipt of and 
response to any such subpriorities is optional for service vendors.
    (5) The following paragraphs provide a detailed explanation of the 
categories, subcategories, criteria, and priority level assignments, 
beginning with the Emergency NSEP category.
    b. Emergency NSEP. Telecommunications services in the Emergency NSEP 
category are those new services so critical as to be required to be 
provisioned at the earliest possible time, without regard to the costs 
of obtaining them.
    (1) Criteria. To qualify under the Emergency NSEP category, the 
service must meet criteria directly supporting or resulting from at 
least one of the following NSEP functions:
    (a) Federal government activity responding to a Presidentially 
declared disaster or emergency as defined in the Disaster Relief Act (42 
U.S.C. 5122).
    (b) State or local government activity responding to a 
Presidentially declared disaster or emergency.
    (c) Response to a state of crisis declared by the National Command 
Authorities (e.g., exercise of Presidential war emergency powers under 
section 706 of the Communications Act.)
    (d) Efforts to protect endangered U.S. personnel or property.
    (e) Response to an enemy or terrorist action, civil disturbance, 
natural disaster, or any other unpredictable occurrence that has damaged 
facilities whose uninterrupted operation is critical to NSEP or the 
management of other ongoing crises.
    (f) Certification by the head or director of a Federal agency, 
commander of a unified/specified command, chief of a military service, 
or commander of a major military command, that the telecommunications 
service is so critical to protection of life and property or to NSEP 
that it must be provided immediately.
    (g) A request from an official authorized pursuant to the Foreign 
Intelligence Surveillance Act (50 U.S.C. 1801 et seq. and 18 U.S.C. 
2511, 2518, 2519).
    (2) Priority Level Assignment.
    (a) Services qualifying under the Emergency NSEP category are 
assigned priority level ``E'' for provisioning.
    (b) After 30 days, assignments of provisioning priority level ``E'' 
for Emergency NSEP services are automatically revoked unless extended 
for another 30-day period. A notice of any such revocation will be sent 
to service vendors.
    (c) For restoration, Emergency NSEP services may be assigned 
priority levels under the provisions applicable to Essential NSEP 
services (see section 12(c)). Emergency NSEP services not otherwise 
qualifying for restoration priority level assignment as Essential NSEP 
may be assigned a restoration priority level ``5'' for a 30-day period. 
Such 30-day restoration priority level assignments will be revoked 
automatically unless extended for another 30-day period. A notice of any 
such revocation will be sent to service vendors.
    c. Essential NSEP. Telecommunication services in the Essential NSEP 
category are those required to be provisioned by due dates specified by 
service users, or restored promptly, normally without regard to 
associated overtime or expediting costs. They may be assigned priority 
level of ``1,'' ``2,''

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``3,'' ``4,'' or ``5'' for both provisioning and restoration, depending 
upon the nature and urgency of the supported function, the impact of 
lack of service or of service interruption upon the supported function, 
and, for priority access to public switched services, the user's level 
of responsibility. Priority level assignments will be valid for no more 
than three years unless revalidated. To be categorized as Essential 
NSEP, a telecommunications service must qualify under one of the four 
following subcategories: National Security Leadership; National Security 
Posture and U.S. Population Attack Warning; Public Health, Safety and 
Maintenance of Law and Order; or Public Welfare and Maintenance of 
National Economic Posture. (Note.--Under emergency circumstances, 
Essential NSEP telecommunication services may be recategorized as 
Emergency NSEP and assigned a priority level ``E'' for provisioning.)
    (1) National security leadership. This subcategory will be strictly 
limited to only those telecommunication services essential to national 
survival if nuclear attack threatens or occurs, and critical orderwire 
and control services necessary to ensure the rapid and efficient 
provisioning or restoration of other NSEP telecommunication services. 
Services in this subcategory are those for which a service interruption 
of even a few minutes would have serious adverse impact upon the 
supported NSEP function.
    (a) Criteria. To qualify under this subcategory, a service must be 
at least one of the following:
    (i) Critical orderwire, or control service, supporting other NSEP 
functions.
    (ii) Presidential communications service critical to continuity of 
government and national leadership during crisis situations.
    (iii) National Command Authority communications service for military 
command and control critical to national survival.
    (iv) Intelligence communications service critical to warning of 
potentially catastrophic attack.
    (v) Communications service supporting the conduct of diplomatic 
negotiations critical to arresting or limiting hostilities.
    (b) Priority level assignment. Services under this subcategory will 
normally be assigned priority level ``1'' for provisioning and 
restoration during the Peace/Crisis/Mobilization time period.
    (2) National security posture and U.S. population attack warning. 
This subcategory covers those minimum additional telecommunication 
services essential to maintaining an optimum defense, diplomatic, or 
continuity-of-government postures before, during, and after crises 
situations. Such situations are those ranging from national emergencies 
to international crises, including nuclear attack. Services in this 
subcategory are those for which a service interruption ranging from a 
few minutes to one day would have serious adverse impact upon the 
supported NSEP function.
    (a) Criteria. To qualify under this subcategory, a service must 
support at least one of the following NSEP functions:
    (i) Threat assessment and attack warning.
    (ii) Conduct of diplomacy.
    (iii) Collection, processing, and dissemination of intelligence.
    (iv) Command and control of military forces.
    (v) Military mobilization.
    (vi) Continuity of Federal government before, during, and after 
crises situations.
    (vii) Continuity of state and local government functions supporting 
the Federal government during and after national emergencies.
    (viii) Recovery of critical national functions after crises 
situations.
    (ix) National space operations.
    (b) Priority level assignment. Services under this subcategory will 
normally be assigned priority level ``2,'' ``3,'' ``4,'' or ``5'' for 
provisioning and restoration during Peacetime/Crisis/Mobilization.
    (3) Public health, safety, and maintenance of law and order. This 
subcategory covers the minimum number of telecommunication services 
necessary for giving civil alert to the U.S. population and maintaining 
law and order and the health and safety of the U.S. population in times 
of any national, regional, or serious local emergency. These services 
are those for which a service interruption ranging from a few minutes to 
one day would have serious adverse impact upon the supported NSEP 
functions.
    (a) Criteria. To qualify under this subcategory, a service must 
support at least one of the following NSEP functions:
    (i) Population warning (other than attack warning).
    (ii) Law enforcement.
    (iii) Continuity of critical state and local government functions 
(other than support of the Federal government during and after national 
emergencies).
    (vi) Hospitals and distributions of medical supplies.
    (v) Critical logistic functions and public utility services.
    (vi) Civil air traffic control.
    (vii) Military assistance to civil authorities.
    (viii) Defense and protection of critical industrial facilities.
    (ix) Critical weather services.
    (x) Transportation to accomplish the foregoing NSEP functions.
    (b) Priority level assignment. Service under this subcategory will 
normally be assigned priority levels ``3,'' ``4,'' or ``5'' for 
provisioning and restoration during Peacetime/Crisis/Mobilization.

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    (4) Public welfare and maintenance of national economic posture. 
This subcategory covers the minimum number of telecommunications 
services necessary for maintaining the public welfare and national 
economic posture during any national or regional emergency. These 
services are those for which a service interruption ranging from a few 
minutes to one day would have serious adverse impact upon the supported 
NSEP function.
    (a) Criteria. To qualify under this subcategory, a service must 
support at least one of the following NSEP functions:
    (i) Distribution of food and other essential supplies.
    (ii) Maintenance of national monetary, credit, and financial 
systems.
    (iii) Maintenance of price, wage, rent, and salary stabilization, 
and consumer rationing programs.
    (iv) Control of production and distribution of strategic materials 
and energy supplies.
    (v) Prevention and control of environmental hazards or damage.
    (vi) Transportation to accomplish the foregoing NSEP functions.
    (b) Priority level assignment. Services under this subcategory will 
normally be assigned priority levels ``4'' or ``5'' for provisioning and 
restoration during Peacetime/Crisis/Mobilization.
    d. Limitations. Priority levels will be assigned only to the minimum 
number of telecommunication services required to support an NSEP 
function. Priority levels will not normally be assigned to backup 
services on a continuing basis, absent additional justification, e.g., a 
service user specifies a requirement for physically diverse routing or 
contracts for additional continuity-of-service features. The Executive 
Office of the President may also establish limitations upon the relative 
numbers of services which may be assigned any restoration priority 
level. These limitations will not take precedence over laws or executive 
orders. Such limitations shall not be exceeded absent waiver by the 
Executive Office of the President.
    e. Non-NSEP services. Telecommunication services in the non-NSEP 
category will be those which do not meet the criteria for either 
Emergency NSEP or Essential NSEP.

[53 FR 47536, Nov. 23, 1988; 54 FR 152, Jan. 4, 1989; 54 FR 1471, Jan. 
13, 1989, as amended at 67 FR 13229, Mar. 21, 2002]

   Appendix B to Part 64--Priority Access Service (PAS) for National 
               Security and Emergency Preparedness (NSEP)

                              1. Authority

    This appendix is issued pursuant to sections 1, 4(i), 201 through 
205 and 303(r) of the Communications Act of 1934, as amended. Under 
these sections, the Federal Communications Commission (FCC) may permit 
the assignment and approval of priorities for access to commercial 
mobile radio service (CMRS) networks. Under section 706 of the 
Communications Act, this authority may be superseded by the war 
emergency powers of the President of the United States. This appendix 
provides the Commission's Order to CMRS providers and users to comply 
with policies and procedures establishing the Priority Access Service 
(PAS). This appendix is intended to be read in conjunction with 
regulations and procedures that the Executive Office of the President 
issues:
    (1) To implement responsibilities assigned in section 3 of this 
appendix, or
    (2) For use in the event this appendix is superseded by the 
President's emergency war powers. Together, this appendix and the 
regulations and procedures issued by the Executive Office of the 
President establish one uniform system of priority access service both 
before and after invocation of the President's emergency war powers.

                              2. Background

    a. Purpose. This appendix establishes regulatory authorization for 
PAS to support the needs of NSEP CMRS users.
    b. Applicability. This appendix applies to the provision of PAS by 
CMRS licensees to users who qualify under the provisions of section 5 of 
this appendix.
    c. Description. PAS provides the means for NSEP telecommunications 
users to obtain priority access to available radio channels when 
necessary to initiate emergency calls. It does not preempt calls in 
progress and is to be used during situations when CMRS network 
congestion is blocking NSEP call attempts. PAS is to be available to 
authorized NSEP users at all times in equipped CMRS markets where the 
service provider has voluntarily decided to provide such service. 
Authorized users would activate the feature on a per call basis by 
dialing a feature code such as *XX. PAS priorities 1 through 5 are 
reserved for qualified and authorized NSEP users, and those users are 
provided access to CMRS channels before any other CMRS callers.
    d. Definitions. As used in this appendix:
    1. Authorizing agent refers to a Federal or State entity that 
authenticates, evaluates and makes recommendations to the Executive 
Office of the President regarding the assignment of priority access 
service levels.
    2. Service provider means an FCC-licensed CMRS provider. The term 
does not include agents of the licensed CMRS provider or resellers of 
CMRS service.
    3. Service user means an individual or organization (including a 
service provider) to whom or which a priority access assignment has been 
made.

[[Page 322]]

    4. The following terms have the same meaning as in Appendix A to 
Part 64:
    (a) Assignment;
    (b) Government;
    (c) National Communications System;
    (d) National Coordinating Center;
    (e) National Security Emergency Preparedness (NSEP) 
Telecommunications Services (excluding the last sentence);
    (f) Reconciliation;
    (g) Revalidation;
    (h) Revision;
    (i) Revocation.
    e. Administration. The Executive Office of the President will 
administer PAS.

                           3. Responsibilities

    a. The Federal Communications Commission will provide regulatory 
oversight of the implementation of PAS, enforce PAS rules and 
regulations, and act as final authority for approval, revision, or 
disapproval of priority assignments by the Executive Office of the 
President by adjudicating disputes regarding either priority assignments 
or the denial thereof by the Executive Office of the President until 
superseded by the President's war emergency powers under Section 706 of 
the Communications Act.
    b. The Executive Office of the President (EOP) will administer the 
PAS system. It will:
    1. Act as the final approval or denial authority for the assignment 
of priorities and the adjudicator of disputes during the exercise of the 
President's war emergency powers under section 706 of the Communications 
Act.
    2. Receive, process, and evaluate requests for priority actions from 
authorizing agents on behalf of service users or directly from service 
users. Assign priorities or deny requests for priority using the 
priorities and criteria specified in section 5 of this appendix. Actions 
on such requests should be completed within 30 days of receipt.
    3. Convey priority assignments to the service provider and the 
authorizing agent.
    4. Revise, revalidate, reconcile, and revoke priority level 
assignments with service users and service providers as necessary to 
maintain the viability of the PAS system.
    5. Maintain a database for PAS related information.
    6. Issue new or revised regulations, procedures, and instructional 
material supplemental to and consistent with this appendix regarding the 
operation, administration, and use of PAS.
    7. Provide training on PAS to affected entities and individuals.
    8. Enlarge the role of the Telecommunications Service Priority 
System Oversight Committee to include oversight of the PAS system.
    9. Report periodically to the FCC on the status of PAS.
    10. Disclose content of the NSEP PAS database only as may be 
required by law.
    c. An Authorizing agent shall:
    1. Identify itself as an authorizing agent and its community of 
interest (State, Federal Agency) to the EOP. State Authorizing Agents 
will provide a central point of contact to receive priority requests 
from users within their state. Federal Authorizing Agents will provide a 
central point of contact to receive priority requests from federal users 
or federally sponsored entities.
    2. Authenticate, evaluate, and make recommendations to the EOP to 
approve priority level assignment requests using the priorities and 
criteria specified in section 5 of this appendix. As a guide, PAS 
authorizing agents should request the lowest priority level that is 
applicable and the minimum number of CMRS services required to support 
an NSEP function. When appropriate, the authorizing agent will recommend 
approval or deny requests for PAS.
    3. Ensure that documentation is complete and accurate before 
forwarding it to the EOP.
    4. Serve as a conduit for forwarding PAS information from the EOP to 
the service user and vice versa. Information will include PAS requests 
and assignments, reconciliation and revalidation notifications, and 
other information.
    5. Participate in reconciliation and revalidation of PAS information 
at the request of the EOP.
    6. Comply with any regulations and procedures supplemental to and 
consistent with this appendix that are issued by the EOP.
    7. Disclose content of the NSEP PAS database only to those having a 
need-to-know.
    d. Service users will:
    1. Determine the need for and request PAS assignments in a planned 
process, not waiting until an emergency has occurred.
    2. Request PAS assignments for the lowest applicable priority level 
and minimum number of CMRS services necessary to provide NSEP 
telecommunications management and response functions during emergency/
disaster situations.
    3. Initiate PAS requests through the appropriate authorizing agent. 
The EOP will make final approval or denial of PAS requests and may 
direct service providers to remove PAS if appropriate. (Note: State and 
local government or private users will apply for PAS through their 
designated State government authorizing agent. Federal users will apply 
for PAS through their employing agency. State and local users in states 
where there has been no designation will be sponsored by the Federal 
agency concerned with the emergency function as set forth in Executive 
Order 12656. If no authorizing agent is determined using these criteria, 
the EOP will serve as the authorizing agent.)

[[Page 323]]

    4. Submit all correspondence regarding PAS to the authorizing agent.
    5. Invoke PAS only when CMRS congestion blocks network access and 
the user must establish communications to fulfill an NSEP mission. Calls 
should be as brief as possible so as to afford CMRS service to other 
NSEP users.
    6. Participate in reconciliation and revalidation of PAS information 
at the request of the authorizing agent or the EOP.
    7. Request discontinuance of PAS when the NSEP qualifying criteria 
used to obtain PAS is no longer applicable.
    8. Pay service providers as billed for PAS.
    9. Comply with regulations and procedures that are issued by the EOP 
which are supplemental to and consistent with this appendix.
    e. Service providers who offer any form of priority access service 
for NSEP purposes shall provide that service in accordance with this 
appendix. As currently described in the Priority Access and Channel 
Assignment Standard (IS-53-A), service providers will:
    1. Provide PAS levels 1, 2, 3, 4, or 5 only upon receipt of an 
authorization from the EOP and remove PAS for specific users at the 
direction of the EOP.
    2. Ensure that PAS system priorities supersede any other NSEP 
priority which may be provided.
    3. Designate a point of contact to coordinate with the EOP regarding 
PAS.
    4. Participate in reconciliation and revalidation of PAS information 
at the request of the EOP.
    5. As technically and economically feasible, provide roaming service 
users the same grade of PAS provided to local service users.
    6. Disclose content of the NSEP PAS database only to those having a 
need-to-know or who will not use the information for economic advantage.
    7. Comply with regulations and procedures supplemental to and 
consistent with this appendix that are issued by the EOP.
    8. Insure that at all times a reasonable amount of CMRS spectrum is 
made available for public use.
    9. Notify the EOP and the service user if PAS is to be discontinued 
as a service.
    f. The Telecommunications Service Priority Oversight Committee will 
identify and review any systemic problems associated with the PAS system 
and recommend actions to correct them or prevent their recurrence.

                                4. Appeal

    Service users and authorizing agents may appeal any priority level 
assignment, denial, revision or revocation to the EOP within 30 days of 
notification to the service user. The EOP will act on the appeal within 
90 days of receipt. If a dispute still exists, an appeal may then be 
made to the FCC within 30 days of notification of the EOP's decision. 
The party filing the appeal must include factual details supporting its 
claim and must provide a copy of the appeal to the EOP and any other 
party directly involved. Involved parties may file a response to the 
appeal made to the FCC within 20 days, and the initial filing party may 
file a reply within 10 days thereafter. The FCC will provide notice of 
its decision to the parties of record. Until a decision is made, the 
service will remain status quo.

             5. PAS Priority Levels and Qualifying Criteria

    The following PAS priority levels and qualifying criteria apply 
equally to all users and will be used as a basis for all PAS 
assignments. There are five levels of NSEP priorities, priority one 
being the highest. The five priority levels are:
    1. Executive Leadership and Policy Makers
    2. Disaster Response/Military Command and Control
    3. Public Health, Safety and Law Enforcement Command
    4. Public Services/Utilities and Public Welfare
    5. Disaster Recovery
    These priority levels were selected to meet the needs of the 
emergency response community and provide priority access for the command 
and control functions critical to management of and response to national 
security and emergency situations, particularly during the first 24 to 
72 hours following an event. Priority assignments should only be 
requested for key personnel and those individuals in national security 
and emergency response leadership positions. PAS is not intended for use 
by all emergency service personnel.

         A. Priority 1: Executive Leadership and Policy Makers.

    Users who qualify for the Executive Leadership and Policy Makers 
priority will be assigned priority one. A limited number of CMRS 
technicians who are essential to restoring the CMRS networks shall also 
receive this highest priority treatment. Examples of those eligible 
include:
    (i) The President of the United States, the Secretary of Defense, 
selected military leaders, and the minimum number of senior staff 
necessary to support these officials;
    (ii) State governors, lieutenant governors, cabinet-level officials 
responsible for public safety and health, and the minimum number of 
senior staff necessary to support these officials; and
    (iii) Mayors, county commissioners, and the minimum number of senior 
staff to support these officials.

[[Page 324]]

      B. Priority 2: Disaster Response/Military Command and Control

    Users who qualify for the Disaster Response/Military Command and 
Control priority will be assigned priority two. Individuals eligible for 
this priority include personnel key to managing the initial response to 
an emergency at the local, state, regional and federal levels. Personnel 
selected for this priority should be responsible for ensuring the 
viability or reconstruction of the basic infrastructure in an emergency 
area. In addition, personnel essential to continuity of government and 
national security functions (such as the conduct of international 
affairs and intelligence activities) are also included in this priority. 
Examples of those eligible include:
    (i) Federal emergency operations center coordinators, e.g., Manager, 
National Coordinating Center for Telecommunications, National 
Interagency Fire Center, Federal Coordinating Officer, Federal Emergency 
Communications Coordinator, Director of Military Support;
    (ii) State emergency Services director, National Guard Leadership, 
State and Federal Damage Assessment Team Leaders;
    (iii) Federal, state and local personnel with continuity of 
government responsibilities;
    (iv) Incident Command Center Managers, local emergency managers, 
other state and local elected public safety officials; and
    (v) Federal personnel with intelligence and diplomatic 
responsibilities.

    C. Priority 3: Public Health, Safety, and Law Enforcement Command

    Users who qualify for the Public Health, Safety, and Law Enforcement 
Command priority will be assigned priority three. Eligible for this 
priority are individuals who direct operations critical to life, 
property, and maintenance of law and order immediately following an 
event. Examples of those eligible include:
    (i) Federal law enforcement command;
    (ii) State police leadership;
    (iii) Local fire and law enforcement command;
    (iv) Emergency medical service leaders;
    (v) Search and rescue team leaders; and
    (vi) Emergency communications coordinators.

       D. Priority 4: Public Services/Utilities and Public Welfare

    Users who qualify for the Public Services/Utilities and Public 
Welfare priority will be assigned priority four. Eligible for this 
priority are those users whose responsibilities include managing public 
works and utility infrastructure damage assessment and restoration 
efforts and transportation to accomplish emergency response activities. 
Examples of those eligible include:
    (i) Army Corps of Engineers leadership;
    (ii) Power, water and sewage and telecommunications utilities; and
    (iii) Transportation leadership.

                    E. Priority 5: Disaster Recovery

    Users who qualify for the Disaster Recovery priority will be 
assigned priority five. Eligible for this priority are those individuals 
responsible for managing a variety of recovery operations after the 
initial response has been accomplished. These functions may include 
managing medical resources such as supplies, personnel, or patients in 
medical facilities. Other activities such as coordination to establish 
and stock shelters, to obtain detailed damage assessments, or to support 
key disaster field office personnel may be included. Examples of those 
eligible include:
    (i) Medical recovery operations leadership;
    (ii) Detailed damage assessment leadership;
    (iii) Disaster shelter coordination and management; and
    (iv) Critical Disaster Field Office support personnel.

                             6. Limitations

    PAS will be assigned only to the minimum number of CMRS services 
required to support an NSEP function. The Executive Office of the 
President may also establish limitations upon the relative numbers of 
services that may be assigned PAS or the total number of PAS users in a 
serving area. These limitations will not take precedence over laws or 
executive orders. Limitations established shall not be exceeded.

[65 FR 48396, Aug. 8, 2000]



PART 65--INTERSTATE RATE OF RETURN PRESCRIPTION PROCEDURES AND METHODOLOGIES--Table of Contents




                           Subpart A--General

Sec.
65.1  Application of part 65.

                          Subpart B--Procedures

65.100  Participation and acceptance of service designation.
65.101  Initiation of unitary rate of return prescription proceedings.
65.102  Petitions for exclusion from unitary treatment and for 
          individual treatment in determining authorized return for 
          interstate exchange access service.
65.103  Procedures for filing rate of return submissions.
65.104  Page limitations for rate of return submissions.
65.105  Discovery.

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                      Subpart C--Exchange Carriers

65.300  Calculations of the components and weights of the cost of 
          capital.
65.301  Cost of equity.
65.302  Cost of debt.
65.303  Cost of preferred stock.
65.304  Capital structure.
65.305  Calculation of the weighted average cost of capital.
65.306  Calculation accuracy.
65.450  Net income.

                    Subpart D--Interexchange Carriers

65.500  Net income.

                    Subpart E--Rate of Return Reports

65.600  Rate of return reports.

              Subpart F--Maximum Allowable Rates of Return

65.700  Determining the maximum allowable rate of return.
65.701  Period of review.
65.702  Measurement of interstate service earnings.

                          Subpart G--Rate Base

65.800  Rate base.
65.810  Definitions.
65.820  Included items.
65.830  Deducted items.

    Authority: Secs. 4, 201, 202, 203, 205, 218, 403, 48 Stat., 1066, 
1072, 1077, 1094, as amended, 47 U.S.C. 151, 154, 201, 202, 203, 204, 
205, 218, 219, 220, 403.



                           Subpart A--General



Sec. 65.1  Application of part 65.

    (a) This part establishes procedures and methodologies for 
Commission prescription of an authorized unitary interstate exchange 
access rate of return and individual rates of return for the interstate 
exchange access rates of certain carriers pursuant to Sec. 65.102. This 
part shall apply to those interstate services of local exchange carriers 
as the Commission shall designate by rule or order, except that all 
local exchange carriers shall provide to the Commission that information 
which the Commission requests for purposes of conducting prescription 
proceedings pursuant to this part.
    (b) Local exchange carriers subject to Secs. 61.41 through 61.49 of 
this chapter are exempt from the requirements of this part with the 
following exceptions:
    (1) Except as otherwise required by Commission order, carriers 
subject to Secs. 61.41 through 61.49 of this chapter shall employ the 
rate of return value calculated for interstate access services in 
complying with any applicable rules under parts 36 and 69 that require a 
return component;
    (2) Carriers subject to Secs. 61.41 through 61.49 of this chapter 
shall be subject to Sec. 65.600(d);
    (3) Carriers subject to Secs. 61.41 through 61.49 of this chapter 
shall continue to comply with the prescribed rate of return when 
offering any services specified in Sec. 61.42(f) of this chapter unless 
the Commission otherwise directs; and
    (4) Carriers subject to Secs. 61.41 through 61.49 of this chapter 
shall comply with Commission information requests made pursuant to 
Sec. 65.1(a).

[60 FR 28543, June 1, 1995]



                          Subpart B--Procedures



Sec. 65.100  Participation and acceptance of service designation.

    (a) All interstate exchange access carriers, their customers, and 
any member of the public may participate in rate of return proceedings 
to determine the authorized unitary interstate exchange access or 
individual interstate exchange access rates of return authorized 
pursuant to Sec. 65.102.
    (b) Participants shall state in their initial pleading in a 
prescription proceeding whether they wish to receive service of 
documents and other material filed in the proceeding. Participants that 
wish to receive service by hand on the filing dates when so required by 
this part 65 shall specify in their initial pleading in a prescription 
proceeding, as specified in Sec. 65.103 (b) and (c), an agent for 
acceptance of service by hand in the District of Columbia. The 
participant may elect in its pleading to receive service by mail or upon 
an agent at another location. When such an election is made, other 
participants need not complete service on the filing date, and requests 
for extension of time due to delays in completion of service will not be 
entertained.

[60 FR 28544, June 1, 1995]

[[Page 326]]



Sec. 65.101  Initiation of unitary rate of return prescription proceedings.

    (a) Whenever the Commission determines that the monthly average 
yields on ten (10) year United States Treasury securities remain, for a 
consecutive six (6) month period, at least 150 basis points above or 
below the average of the monthly average yields in effect for the 
consecutive six (6) month period immediately prior to the effective date 
of the current prescription, the Commission shall issue a notice 
inquiring whether a rate of return prescription according to this part 
should commence. This notice shall state:
    (1) The deadlines for filing initial and reply comments regarding 
the notice;
    (2) The cost of debt, cost of preferred stock, and capital structure 
computed in accordance with Secs. 65.302, 65.303, and 65.304; and
    (3) Such other information as the Commission may deem proper.
    (b) Based on the information submitted in response to the notice 
described in Sec. 65.101(a), and on any other information specifically 
identified, the Commission may issue a notice initiating a prescription 
proceeding pursuant to this part.
    (c) The Chief, Wireline Competition Bureau, may issue the notice 
described in Sec. 65.101(a).

[60 FR 28544, June 1, 1995, as amended at 67 FR 13229, Mar. 21, 2002]



Sec. 65.102  Petitions for exclusion from unitary treatment and for individual treatment in determining authorized return for interstate exchange access 
          service.

    (a) Exclusion from unitary treatment will be granted for a period of 
two years if the cost of capital for interstate exchange service is so 
low as to be confiscatory because it is outside the zone of 
reasonableness for the individual carrier's required rate of return for 
interstate exchange access services.
    (b) A petition for exclusion from unitary treatment and for 
individual treatment must plead with particularity the exceptional facts 
and circumstances that justify individual treatment. The showing shall 
include a demonstration that the exceptional facts and circumstances are 
not of transitory effect, such that exclusion for a period of a least 
two years is justified.
    (c) A petition for exclusion from unitary treatment and for 
individual treatment may be filed at any time. When a petition is filed 
at a time other than that specified in Sec. 65.103(b)(2), the petitioner 
must provide compelling evidence that its need for individual treatment 
is not simply the result of short-term fluctuations in the cost of 
capital or similar events.

[60 FR 28544, June 1, 1995]



Sec. 65.103  Procedures for filing rate of return submissions.

    (a) Rate of return submissions listed in Sec. 65.103 (b)(1) and (c) 
may include any relevant information, subject to the page limitations of 
Sec. 65.104. The Chief, Wireline Competition Bureau, may require from 
carriers providing interstate services, and from other participants 
submitting rate of return submissions, data, studies or other 
information that are reasonably calculated to lead to a full and fair 
record.
    (b) In proceedings to prescribe an authorized unitary rate of return 
on interstate access services, interested parties may file direct case 
submissions, responses, and rebuttals. Direct case submissions shall be 
filed within sixty (60) calendar days following the effective date of a 
Commission notice initiating a rate of return proceeding pursuant to 
Sec. 65.101(b). Rate of return submissions responsive to the direct case 
submissions shall be filed within sixty (60) calendar days after the 
deadline for filing direct case submissions. Rebuttal submissions shall 
be field within twenty-one (21) calendar days after the deadline for 
filing responsive submissions.
    (c) Petitions for exclusion from unitary treatment and for 
individual treatment may be filed on the same date as the deadline for 
filing responsive rate of return submissions. Oppositions shall be filed 
within 35 calendar days thereafter. Rebuttal submissions shall be filed 
within 21 calendar days after the deadline for filing responsive 
submissions.
    (d) An original and 4 copies of all rate of return submissions shall 
be filed with the Secretary.

[[Page 327]]

    (e) The filing party shall serve a copy of each rate of return 
submission, other than an initial submission, on all participants who 
have filed a designation of service notice pursuant to Sec. 65.100(b).

[60 FR 28544, June 1, 1995, as amended at 67 FR 13229, Mar. 21, 2002]



Sec. 65.104  Page limitations for rate of return submissions.

    Rate of return submissions, including all argument, attachments, 
appendices, supplements, and supporting materials, such as testimony, 
data and documents, but excluding tables of contents and summaries of 
argument, shall be subject to the following double spaced typewritten 
page limits:
    (a) The direct case submission of any participant shall not exceed 
70 pages in length.
    (b) The responsive submission of any participant shall not exceed 70 
pages in length.
    (c) The rebuttal submission of any participant shall not exceed 50 
pages in length.
    (d) Petitions for exclusion from unitary treatment shall not exceed 
70 pages in length. Oppositions to petitions for exclusion shall not 
exceed 50 pages in length. Rebuttals shall not exceed 35 pages in 
length.

[60 FR 28544, June 1, 1995]



Sec. 65.105  Discovery.

    (a) Participants shall file with each rate of return submission 
copies of all information, including studies, financial analysts' 
reports, and any other documents relied upon by participants or their 
experts in the preparation of their submission. Information filed 
pursuant to this paragraph for which protection from disclosure is 
sought shall be filed subject to protective orders which shall be duly 
granted by the Chief, Wireline Competition Bureau, for good cause shown.
    (b) Participants may file written interrogatories and requests for 
documents directed to any rate of return submission and not otherwise 
filed pursuant to Sec. 65.105(a). The permissible scope of examination 
is that participants may be examined upon any matter, not privileged, 
that will demonstrably lead to the production of material, relevant, 
decisionally significant evidence.
    (c) Discovery requests pursuant to Sec. 65.105(b), including written 
interrogatories, shall be filed within 14 calendar days after the filing 
of the rate of return submission to which the request is directed. 
Discovery requests that are not opposed shall be complied with within 14 
calendar days of the request date.
    (d) Oppositions to discovery requests made pursuant to 
Sec. 65.105(b), including written interrogatories, shall be filed within 
7 calendar days after requests are filed. The Chief, Wireline 
Competition Bureau, shall rule upon any such opposition. Except as 
stayed by the Commission or a Court, any required response to a 
discovery request that is opposed shall be provided within 14 calendar 
days after release of the ruling of the Chief, Wireline Competition 
Bureau.
    (e) An original and 4 copies of all information described in 
Sec. 65.105(a) and all requests, oppositions, and responses made 
pursuant to Sec. 65.105 (a), (b) and (d) shall be filed with the 
Secretary.
    (f) Service of requests, oppositions, and responses made pursuant to 
Sec. 65.105 (b) and (d) shall be made upon all participants who have 
filed a designation of service notice pursuant to Sec. 65.100(b). 
Service of requests upon participants who have filed designation of 
service notices pursuant to Sec. 65.100(b) shall be made by hand on the 
filing dates thereof.

[60 FR 28544, June 1, 1995, as amended at 67 FR 13229, Mar. 21, 2002]



                      Subpart C--Exchange Carriers



Sec. 65.300  Calculations of the components and weights of the cost of capital.

    (a) Sections 65.301 through 65.303 specify the calculations that are 
to be performed in computing cost of debt, cost of preferred stock, and 
financial structure weights for prescription proceedings. The 
calculations shall determine, where applicable, a composite cost of 
debt, a composite cost of preferred stock, and a composite financial 
structure for all local exchange carriers with annual revenues equal to 
or

[[Page 328]]

above the indexed revenue threshold as defined in Sec. 32.9000. The 
calculations shall be based on data reported to the Commission in FCC 
Report 43-02. (See 47 CFR 43.21). The results of the calculations shall 
be used in the represcription proceeding to which they relate unless the 
record in that proceeding shows that their use would be unreasonable.
    (b) Excluded from cost of capital calculations made pursuant to 
Sec. 65.300 shall be those sources of financing that are not investor 
supplied, or that are otherwise subtracted from a carrier's rate base 
pursuant to Commission orders governing the calculation of net rate base 
amounts in tariff filings that are made pursuant to section 203 of the 
Communications Act of 1934, 47 U.S.C. 203, or that were treated as 
``zero cost'' sources of financing in section 450 and subpart G of this 
part 65. Specifically excluded are: accounts payable, accrued taxes, 
accrued interest, dividends payable, deferred credits and operating 
reserves, deferred taxes and deferred tax credits.

[60 FR 28545, June 1, 1995, as amended at 67 FR 5702, Feb. 6, 2002]



Sec. 65.301  Cost of equity.

    The cost of equity shall be determined in represcription proceedings 
after giving full consideration to the evidence in the record, including 
such evidence as the Commission may officially notice.

[60 FR 28545, June 1, 1995]



Sec. 65.302  Cost of debt.

    The formula for determining the cost of debt is equal to:
    [GRAPHIC] [TIFF OMITTED] TR01JN95.000
    
Where:
    ``Total Annual Interest Expense'' is the total interest expense for 
the most recent two years for all local exchange carriers with annual 
revenues equal to or above the indexed revenue threshold as defined in 
Sec. 32.9000.
    ``Average Outstanding Debt'' is the average of the total debt for 
the most recent two years for all local exchange carriers with annual 
revenues equal to or above the indexed revenue threshold as defined in 
Sec. 32.9000.

[60 FR 28545, June 1, 1995, as amended at 67 FR 5702, Feb. 6, 2002]



Sec. 65.303  Cost of preferred stock.

    The formula for determining the cost of preferred stock is:
    [GRAPHIC] [TIFF OMITTED] TR01JN95.001
    
Where:
    ``Total Annual Preferred Dividends'' is the total dividends on 
preferred stock for the most recent two years for all local exchange 
carriers with annual revenues equal to or above the indexed revenue 
threshold as defined in Sec. 32.9000. ``Proceeds from the Issuance of 
Preferred Stock'' is the average of the total net proceeds from the 
issuance of preferred stock for the most recent two years for all local 
exchange carriers with annual revenues equal to or above the indexed 
revenue threshold as defined in Sec. 32.9000.

[60 FR 28545, June 1, 1995, as amended at 67 FR 5702, Feb. 6, 2002]



Sec. 65.304  Capital structure.

    The proportion of each cost of capital component in the capital 
structure is equal to:
    Proportion in the capital structure =

[[Page 329]]

[GRAPHIC] [TIFF OMITTED] TR01JN95.002

Where:
    ``Book Value of particular component'' is the total of the book 
values of that component for all local exchange carriers with annual 
revenues equal to or above the indexed revenue threshold as defined in 
Sec. 32.9000.
    ``Book Value of Debt+Book Value of Preferred Stock+Book Value of 
Equity'' is the total of the book values of all the components for all 
local exchange carriers with annual revenues equal to or above the 
indexed revenue threshold as defined in Sec. 32.9000.
    The total of all proportions shall equal 1.00.

[60 FR 28545, June 1, 1995, as amended at 67 FR 5702, Feb. 6, 2002]



Sec. 65.305  Calculation of the weighted average cost of capital.

    (a) The composite weighted average cost of capital is the sum of the 
cost of debt, the cost of preferred stock, and the cost of equity, each 
weighted by its proportion in the capital structure of the telephone 
companies.
    (b) Unless the Commission determines to the contrary in a 
prescription proceeding, the composite weighted average cost of debt and 
cost of preferred stock is the composite weight computed in accordance 
with Sec. 65.304 multiplied by the composite cost of the component 
computed in accordance with Sec. 65.301 or Sec. 65.302, as applicable. 
The composite weighted average cost of equity will be determined in each 
prescription proceeding.

[60 FR 28546, June 1, 1995]



Sec. 65.306  Calculation accuracy.

    In a prescription proceeding, the final determinations of the cost 
of equity, cost of debt, cost of preferred stock and their capital 
structure weights shall be accurate to two decimal places.

[60 FR 28546, June 1, 1995]



Sec. 65.450  Net income.

    (a) Net income shall consist of all revenues derived from the 
provision of interstate telecommunications services regulated by this 
Commission less expenses recognized by the Commission as necessary to 
the provision of these services. The calculation of expenses entering 
into the determination of net income shall include the interstate 
portion of plant specific operations (Accounts 6110 through 6441), plant 
nonspecific operations (Accounts 6510 through 6560), customer operations 
(Accounts 6610 through 6620), corporate operations (Accounts 6720 
through 6790), other operating income and expense (Account 7100), and 
operating taxes (Accounts 7200 through 7250), except to the extent this 
Commission specifically provides to the contrary.
    (b) Gains and losses related to the disposition of plant in service 
items, shall be handled as follows:
    (1) Gains related to property sold to others and leased back under 
capital leases for use in telecommunications services shall be recorded 
in Account 4300 (Other long-term liabilities and deferred credits) and 
credited to Account 6560 (Depreciation and Amortization Expense) over 
the amortization period established for the capital lease;
    (2) Gains or losses related to the disposition of land and other 
nondepreciable items recorded in Account 7100 (Other operating income 
and expense) shall be included in net income for ratemaking purposes, 
but adjusted to reflect the relative amount of time such property was 
used in regulated operations and included in the rate base; and
    (3) Proceeds related to the disposition of property depreciated on a 
group basis and used jointly in regulated and nonregulated activities, 
including sale-leaseback arrangements for property depreciated on a 
group basis, shall be credited to the related reserves and attributed to 
regulated and nonregulated

[[Page 330]]

in proportion to the accumulated regulated and nonregulated depreciation 
for that group.
    (c) Gains or losses related to the disposition of property that was 
never included in the rate base shall not be considered for ratemaking 
purposes.
    (d) Except for the allowance for funds used during construction, 
reasonable charitable deductions and interest related to customer 
deposits, the amounts recorded as nonoperating income and expenses and 
taxes (Accounts 7300 and 7400) and interest and related items (Account 
7500) and extraordinary items (Account 7600) shall not be included 
unless this Commission specifically determines that particular items 
recorded in those accounts shall be included.

[53 FR 1029, Jan. 15, 1988, as amended at 60 FR 12139, Mar. 6, 1995; 67 
FR 5702, Feb. 6, 2002]



                    Subpart D--Interexchange Carriers



Sec. 65.500  Net income.

    The net income methodology specified in Sec. 65.450 shall be 
utilized by all interexchange carriers that are so designated by 
Commission order.

[60 FR 28546, June 1, 1995]



                    Subpart E--Rate of Return Reports



Sec. 65.600  Rate of return reports.

    (a) Subpart E shall apply to those interstate communications common 
carriers and exchange carriers that are so designated by Commission 
order.
    (b) Each local exchange carrier or group of affiliated carriers 
which is not subject to Secs. 61.41 through 61.49 of this chapter and 
which has filed individual access tariffs during the preceding 
enforcement period shall file with the Commission within three (3) 
months after the end of each calendar year, an annual rate of return 
monitoring report which shall be the enforcement period report. Reports 
shall be filed on the appropriate report form prescribed by the 
Commission (see Sec. 1.795 of this chapter) and shall provide full and 
specific answers to all questions propounded and information requested 
in the currently effective report form. The number of copies to be filed 
shall be specified in the applicable report form. At least one copy of 
the report shall be signed on the signature page by the responsible 
officer. A copy of each report shall be retained in the principal office 
of the respondent and shall be filed in such a manner as to be readily 
available for reference and inspection. Final adjustments to the 
enforcement period report shall be made by September 30 of the year 
following the enforcement period to ensure that any refunds can be 
properly reflected in an annual access filing.
    (c) Each interexchange carrier subject to Secs. 61.41 through 61.49 
shall file with the Commission, within three (3) months after the end of 
each calendar year, the total interstate rate of return for that year 
for all interstate services subject to regulation by the Commission. 
Each such filing shall include a report of the total revenues, total 
expenses and taxes, operating income, and the rate base. A copy of the 
filing shall be retained in the principal office of the respondent and 
shall be filed in such manner as to be readily available for reference 
and inspection.
    (d)(1) Each local exchange carrier or group of affiliated carriers 
subject to Secs. 61.41 through 61.49 of this chapter shall file with the 
Commission within three (3) months after the end of each calendar year a 
report of its total interstate rate of return for that year. Such 
filings shall include a report of the total revenues, total expenses and 
taxes, operating income, and the rate base. Reports shall be filed on 
the appropriate form prescribed by the Commission (see Sec. 1.795 of 
this chapter) and shall provide full and specific answers to all 
questions propounded and information requested in the currently 
effective form. The number of copies to be filed shall be specified in 
the applicable report form. At least one copy of the report shall be 
retained in the principal office of the respondent and shall be filed in 
such manner as to be readily available for reference and inspection.
    (2) Each local exchange carrier or group of affiliated carriers 
subject to Secs. 61.41 through 61.49 of this chapter shall file with the 
Commission within fifteen (15) months after the end of each calendar 
year a report reflecting any corrections or modifications to the

[[Page 331]]

report filed pursuant to paragraph (d)(1) of this section. Reports shall 
be filed on the appropriate form prescribed by the Commission (see 
Sec. 1.795 of this chapter) and shall provide full and specific answers 
to all questions propounded and information requested in the currently 
effective form. The number of copies to be filed shall be specified in 
the applicable report form. At least one copy of the report shall be 
retained in the principal office of the respondent and shall be filed in 
such manner as to be readily available for reference and inspection.

[52 FR 274, Jan. 5, 1987, as amended at 54 FR 19844, May 8, 1989; 55 FR 
42385, Oct. 19, 1990; 56 FR 21617, May 10, 1991; 62 FR 5166, Feb. 4, 
1997]



              Subpart F--Maximum Allowable Rates of Return



Sec. 65.700  Determining the maximum allowable rate of return.

    (a) The maximum allowable rate of return for any exchange carrier's 
earnings on any access service category shall be determined by adding a 
fixed increment of four-tenths of one percent of the exchange carrier 
prescribed rate of return.
    (b) The maximum allowable rate of return for any exchange carrier's 
overall interstate earnings for all access service categories shall be 
determined by adding a fixed increment of one-quarter of one percent to 
the exchange carrier prescribed rate of return.
    (c) The maximum allowable rate of return for rates filed by local 
exchange carrier subject to Sec. 61.50 of this chapter, shall be 
determined by adding a fixed increment of one and one-half percent to 
the carriers prescribed rate of return.

[51 FR 11034, Apr. 1, 1986, as amended at 58 FR 36149, July 6, 1993; 60 
FR 28546, June 1, 1995]



Sec. 65.701  Period of review.

    For both exchange and interexchange carriers subject to this part, 
interstate earnings shall be measured over a two year period to 
determine compliance with the maximum allowable rate of return. The 
review periods shall commence on January 1 in odd-numbered years and 
shall end on December 31 in even-numbered years.

[60 FR 28546, June 1, 1995]



Sec. 65.702  Measurement of interstate service earnings.

    (a) For exchange carriers, earnings shall be measured separately for 
each access service category for purposes of determining compliance with 
the maximum allowable rate of return. The access service categories 
shall be: an aggregated category consisting of Special Access, 
Sec. 69.113, and Contribution Charges for Special Access Expanded 
Interconnection, Sec. 69.122; Connection Charges for Expanded 
Interconnection, Sec. 69.121; Common Line, Secs. 69.104-69.105; and an 
aggregated category consisting of Line Termination, Sec. 69.106, 
Intercept, Sec. 69.108, Local Switching, Sec. 69.107, Transport, 
Secs. 69.110-69.112, 69.124, 69.125, and Information, Sec. 69.109. The 
Billing and Collection access element shall not be included in any 
access service category for purposes of this part. The Commission will 
also separately review exchange carrier overall interstate earnings 
subject to this part for determining compliance with the maximum 
allowable rate of return determined by Sec. 65.700(b).
    (b) For exchange carriers, earnings shall be measured for purposes 
of determining compliance with the maximum allowable rates of return 
separately for each study area; provided, however, that if the carrier 
has filed or concurred in access tariffs aggregating costs and rates for 
two or more study areas, the earnings will be determined for the 
aggregated study areas rather than for each study area separately. If an 
exchange carrier has not utilized the same level of study area 
aggregation during the entire two-year earnings review period, then the 
carrier's earnings will be measured for the entire two-year period on 
the basis of the tariffs in effect at the end of the second year of the 
two-year review period; provided, however, that if tariffs representing 
a higher level of study area aggregation were not in effect for at least 
eight months in the second year, then the carrier's earnings will be 
measured on the basis of the study area level of aggregation in effect 
for the

[[Page 332]]

majority of the two-year period; provided further, that any carrier that 
was not a member of the National Exchange Carrier Association or other 
voluntary pools for both years of the two-year review period will have 
its earnings reviewed individually for the full two-year period.

[51 FR 11034, Apr. 1, 1986, as amended at 57 FR 54719, Nov. 20, 1992; 58 
FR 48763, Sept. 17, 1993; 60 FR 28546, June 1, 1995]



                          Subpart G--Rate Base

    Source: 53 FR 1029, Jan. 15, 1988, unless otherwise noted.



Sec. 65.800  Rate base.

    The rate base shall consist of the interstate portion of the 
accounts listed in Sec. 65.820 that has been invested in plant used and 
useful in the efficient provision of interstate telecommunications 
services regulated by this Commission, minus any deducted items computed 
in accordance with Sec. 65.830.



Sec. 65.810  Definitions.

    As used in this subpart ``account xxxx'' means the account of that 
number kept in accordance with the Uniform System of Accounts for Class 
A and Class B Telecommunications Companies in 47 CFR part 32.



Sec. 65.820  Included items.

    (a) Telecommunications Plant. The interstate portion of all assets 
summarized in Account 2001 (Telecommunications Plant in Service) and 
Account 2002 (Property Held for Future Use), net of accumulated 
depreciation and amortization, and Account 2003 (Telecommunications 
Plant Under Construction), and, to the extent such inclusions are 
allowed by this Commission, Account 2005 (Telecommunications Plant 
Adjustment). Any interest cost for funds used during construction 
capitalized on assets recorded in these accounts shall be computed in 
accordance with the procedures in Sec. 32.2000(c)(2)(x) of this chapter.
    (b) Material and Supplies. The interstate portion of assets 
summarized in Account 1220.1 (Material and Supplies).
    (c) Noncurrent assets. The interstate portion of Class B Rural 
Telephone Bank stock contained in Account 1410 and the interstate 
portion of assets summarized in Account 1410 (Other Noncurrent Assets) 
and Account 1438 (Deferred Maintenance, Retirements and Deferred 
Charges), only to the extent that they have been specifically approved 
by this Commission for inclusion (Note: The interstate portion of assets 
summarized in Account 1410 should not include any amounts related to 
investments, sinking funds or unamortized debt issuance expense). Except 
as noted above, no amounts from accounts 1406 through 1500 shall be 
included.
    (d) Cash Working Capital. The average amount of investor-supplied 
capital needed to provide funds for a carrier's day-to-day interstate 
operations. Class A carriers may calculate a cash working capital 
allowance either by performing a lead-lag study of interstate revenue 
and expense items or by using the formula set forth in paragraph (e) of 
this section. Class B carriers, in lieu of performing a lead-lag study 
or using the formula in paragraph (e) of this section, may calculate the 
cash working capital allowance using a standard allowance which will be 
established annually by the Chief, Wireline Competition Bureau. When 
either the lead-lag study or formula method is used to calculate cash 
working capital, the amount calculated under the study or formula may be 
increased by minimum bank balances and working cash advances to 
determine the cash working capital allowance. Once a carrier has 
selected a method of determining its cash working capital allowance, it 
shall not change to an optional method from one year to the next without 
Commission approval.
    (e) In lieu of a full lead-lag study, carriers may calculate the 
cash working capital allowance using the following formula.
    (1) Compute the weighted average revenue lag days as follows:
    (i) Multiply the average revenue lag days for interstate revenues 
billed in arrears by the percentage of interstate revenues billed in 
arrears.
    (ii) Multiply the average revenue lag days for interstate revenues 
billed in advance by the percentage of interstate revenues billed in 
advance. (Note: a

[[Page 333]]

revenue lead should be shown as a negative lag.)
    (iii) Add the results of paragraphs (e)(1) (i) and (ii) of this 
section to determine the weighted average revenue lag days.
    (2) Compute the weighted average expense lag days as follows:
    (i) Multiply the average lag days for interstate expenses (i.e., 
cash operating expenses plus interest) paid in arrears by the percentage 
of interstate expenses paid in arrears.
    (ii) Multiply the average lag days for interstate expenses paid in 
advance by the percentage of interstate expenses paid in advance. (Note: 
an expense lead should be shown as a negative lag.)
    (iii) Add the results of paragraphs (e)(2) (i) and (ii) of this 
section to determine the weighted average expense lag days.
    (3) Compute the weighted net lag days by deducting the weighted 
average expense lag days from the weighted average revenue lag days.
    (4) Compute the percentage of a year represented by the weighted net 
lag days by dividing the days computed in paragraph (e)(3) of this 
section by 365 days.
    (5) Compute the cash working capital allowance by multiplying the 
interstate cash operating expenses (i.e., operating expenses minus 
depreciation and amortization) plus interest by the percentage computed 
in paragraph (e)(4) of this section.

[54 FR 9048, Mar. 3, 1989, as amended at 60 FR 12139, Mar. 6, 1995; 67 
FR 5703, Feb. 6, 2002; 67 FR 13229, Mar. 21, 2002]



Sec. 65.830  Deducted items.

    (a) The following items shall be deducted from the interstate rate 
base.
    (1) The interstate portion of deferred taxes (Accounts 4100 and 
4340).
    (2) The interstate portion of customer deposits (Account 4040).
    (3) The interstate portion of other long-term liabilities in 
(Account 4300 Other long-term liabilities and deferred credits) that 
were derived from the expenses specified in Sec. 65.450(a).
    (4) The interstate portion of other deferred credits in (Account 
4300 Other long-term liabilities and deferred credits) to the extent 
they arise from the provision of regulated telecommunications services. 
This shall include deferred gains related to sale-leaseback 
arrangements.
    (b) The interstate portion of deferred taxes, customer deposits and 
other deferred credits shall be determined as prescribed by 47 CFR part 
36.
    (c) The interstate portion of other long-term liabilities included 
in (Account 4300 Other long-term liabilities and deferred credits) shall 
bear the same proportionate relationships as the interstate/intrastate 
expenses which gave rise to the liability.

[54 FR 9049, Mar. 3, 1989, as amended at 62 FR 15118, Mar. 31, 1997; 67 
FR 5703, Feb. 6, 2002]



PART 68--CONNECTION OF TERMINAL EQUIPMENT TO THE TELEPHONE NETWORK--Table of Contents




                           Subpart A--General

Sec.
68.1  Purpose.
68.2  Scope.
68.3  Definitions.
68.4  Hearing aid-compatible telephones.
68.5  Waivers.
68.6  Telephones with volume control.
68.7  Technical criteria for terminal equipment.

           Subpart B--Conditions on Use of Terminal Equipment

68.100  General.
68.102  Terminal equipment approval requirement.
68.105  Minimum point of entry (MPOE) and demarcation point.
68.106  Notification to provider of wireline telecommunications.
68.108  Incidence of harm.
68.110  Compatibility of the public switched telephone network and 
          terminal equipment.
68.112  Hearing aid-compatibility.
68.160  Designation of Telecommunication Certification Bodies (TCBs).
68.162  Requirements for Telecommunication Certification Bodies.

            Subpart C--Terminal Equipment Approval Procedures

68.201  Connection to the public switched telephone network.
68.211  Terminal equipment approval revocation procedures.
68.213  Installation of other than ``fully protected'' non-system simple 
          customer premises wiring.

[[Page 334]]

68.214  Changes in other than ``fully protected'' premises wiring that 
          serves fewer than four subscriber access lines.
68.215  Installation of other than ``fully-protected'' system premises 
          wiring that serves more than four subscriber access lines.
68.218  Responsibility of the party acquiring equipment authorization.
68.224  Notice of non-hearing aid compatibility.

          Subpart D--Conditions for Terminal Equipment Approval

68.300  Labeling requirements.
68.316  Hearing aid compatibility: Technical requirements.
68.317  Hearing aid compatibility volume control: technical standards.
68.318  Additional limitations.
68.320  Supplier's Declaration of Conformity.
68.321  Location of responsible party.
68.322  Changes in name, address, ownership or control of responsible 
          party.
68.324  Supplier's Declaration of Conformity requirements.
68.326  Retention of records.
68.346  Description of testing facilities.
68.348  Changes in equipment and circuitry subject to a Supplier's 
          Declaration of Conformity.
68.350  Revocation of Supplier's Declaration of Conformity.
68.354  Numbering and labeling requirements for terminal equipment.

                     Subpart E--Complaint Procedures

68.400  Content.
68.402  Amended complaints.
68.404  Number of copies.
68.406  Service.
68.408  Answers to complaints and amended complaints.
68.410  Replies to answers or amended answers.
68.412  Defective pleadings.
68.414  Hearing aid-compatibility: Enforcement.
68.415  Hearing aid-compatibility and volume control informal 
          complaints.
68.417  Informal complaints; form and content.
68.418  Procedure; designation of agents for service.
68.419  Answers to informal complaints.
68.420  Review and disposition of informal complaints.
68.423  Actions by the Commission on its own motion.

Subpart F  [Reserved]

       Subpart G--Administrative Council for Terminal Attachments

68.602  Sponsor of the Administrative Council for Terminal Attachments.
68.604  Requirements for submitting technical criteria.
68.608  Publication of technical criteria.
68.610  Database of terminal equipment.
68.612  Labels on terminal equipment.
68.614  Oppositions and appeals.

    Authority: 47 U.S.C. 154, 303.



                           Subpart A--General

    Authority: Secs. 4, 5, 303, 48 Stat., as amended, 1066, 1068, 1082; 
(47 U.S.C. 154, 155, 303).

    Source: 45 FR 20841, Mar. 31, 1980, unless otherwise noted.



Sec. 68.1  Purpose.

    The purpose of the rules and regulations in this part is to provide 
for uniform standards for the protection of the telephone network from 
harms caused by the connection of terminal equipment and associated 
wiring thereto, and for the compatibility of hearing aids and telephones 
so as to ensure that persons with hearing aids have reasonable access to 
the telephone network.

(47 U.S.C. 151, 154(i), 154(j), 201-205, 218, 220, 313, 403, 412, and 5 
U.S.C. 553)

[49 FR 21733, May 23, 1984]



Sec. 68.2  Scope.

    (a) Except as provided in paragraphs (b) and (c) of this section, 
the rules and regulations apply to direct connection of all terminal 
equipment to the public switched telephone network for use in 
conjunction with all services other than party line services.
    (b) National defense and security. Where the Secretary of Defense or 
authorized agent or the head of any other governmental department, 
agency, or administration (approved in writing by the Commission to act 
pursuant to this rule) or authorized representative, certifies in 
writing to the appropriate common carrier that compliance with the 
provisions of part 68 could result in the disclosure of communications 
equipment or security devices, locations, uses, personnel, or activity

[[Page 335]]

which would adversely affect the national defense and security, such 
equipment or security devices may be connected to the telephone company 
provided communications network without compliance with this part, 
provided that each written certification states that:
    (1) The connection is required in the interest of national defense 
and security;
    (2) The equipment or device to be connected either complies with the 
technical criteria pertaining thereto or will not cause harm to the 
nationwide telephone network or to employees of any provider of wireline 
telecommunications; and
    (3) The installation is performed by well-trained, qualified 
employees under the responsible supervision and control of a person who 
is a licensed professional engineer in the jurisdiction in which the 
installation is performed.
    (c) Governmental departments, agencies, or administrations that wish 
to qualify for interconnection of equipment or security devices pursuant 
to this section shall file a request with the Secretary of this 
Commission stating the reasons why the exemption is requested. A list of 
these departments, agencies, or administrations that have filed requests 
shall be published in the Federal Register. The Commission may take 
action with respect to those requests 30 days after publication. The 
Commission action shall be published in the Federal Register. However, 
the Commission may grant, on less than the normal notice period or 
without notice, special temporary authority, not to exceed 90 days, for 
governmental departments, agencies, or administrations that wish to 
qualify for interconnection of equipment or security devices pursuant to 
this section. Requests for such authority shall state the particular 
fact and circumstances why authority should be granted on less than the 
normal notice period or without notice. In such cases, the Commission 
shall endeavor to publish its disposition as promptly as possible in the 
Federal Register.

[66 FR 7580, Jan. 24, 2001]



Sec. 68.3  Definitions.

    As used in this part:
    Demarcation point (also point of interconnection). As used in this 
part, the point of demarcation and/or interconnection between the 
communications facilities of a provider of wireline telecommunications, 
and terminal equipment, protective apparatus or wiring at a subscriber's 
premises.
    Essential telephones. Only coin-operated telephones, telephones 
provided for emergency use, and other telephones frequently needed for 
use by persons using such hearing aids.
    Harm. Electrical hazards to the personnel of providers of wireline 
telecommunications, damage to the equipment of providers of wireline 
telecommunications, malfunction of the billing equipment of providers of 
wireline telecommunications, and degradation of service to persons other 
than the user of the subject terminal equipment, his calling or called 
party.
    Hearing aid compatible. Except as used at Secs. 68.4(a)(3) and 
68.414, the terms hearing aid compatible or hearing aid compatibility 
are used as defined in Sec. 68.316, unless it is specifically stated 
that hearing aid compatibility volume control, as defined in 
Sec. 68.317, is intended or is included in the definition.
    Inside wiring or premises wiring. Customer-owned or controlled wire 
on the subscriber's side of the demarcation point.
    Premises. As used herein, generally a dwelling unit, other building 
or a legal unit of real property such as a lot on which a dwelling unit 
is located, as determined by the provider of telecommunications 
service's reasonable and nondiscriminatory standard operating practices.
    Private radio services. Private land mobile radio services and other 
communications services characterized by the Commission in its rules as 
private radio services.
    Public mobile services. Air-to-ground radiotelephone services, 
cellular radio telecommunications services, offshore radio, rural radio 
service, public land mobile telephone service, and other common carrier 
radio communications services covered by part 22 of Title 47 of the Code 
of Federal Regulations.
    Responsible party. The party or parties responsible for the 
compliance of

[[Page 336]]

terminal equipment or protective circuitry intended for connection 
directly to the public switched telephone network with the applicable 
rules and regulations in this part and with the technical criteria 
published by the Administrative Council for Terminal Attachments. If a 
Telecommunications Certification Body certifies the terminal equipment, 
the responsible party is the holder of the certificate for that 
equipment. If the terminal equipment is the subject of a Supplier's 
Declaration of Conformity, the responsible party shall be: the 
manufacturer of the terminal equipment, or the manufacturer of 
protective circuitry that is marketed for use with terminal equipment 
that is not to be connected directly to the network, or if the equipment 
is imported, the importer, or if the terminal equipment is assembled 
from individual component parts, the assembler. If the equipment is 
modified by any party not working under the authority of the responsible 
party, the party performing the modifications, if located within the 
U.S., or the importer, if the equipment is imported subsequent to the 
modifications, becomes the new responsible party. Retailers or original 
equipment manufacturers may enter into an agreement with the assembler 
or importer to assume the responsibilities to ensure compliance of the 
terminal equipment and to become the responsible party.
    Secure telephones. Telephones that are approved by the United States 
Government for the transmission of classified or sensitive voice 
communications.
    Terminal equipment. As used in this part, communications equipment 
located on customer premises at the end of a communications link, used 
to permit the stations involved to accomplish the provision of 
telecommunications or information services.

[66 FR 7581, Jan. 24, 2001]



Sec. 68.4  Hearing aid-compatible telephones.

    (a)(1) Except for telephones used with public mobile services, 
telephones used with private radio services, and cordless and secure 
telephones, every telephone manufactured in the United States (other 
than for export) or imported for use in the United States after August 
16, 1989, must be hearing aid compatible, as defined in Sec. 68.316. 
Every cordless telephone manufactured in the United States (other than 
for export) or imported into the United States after August 16, 1991, 
must be hearing aid compatible, as defined in Sec. 68.316.
    (2) Unless otherwise stated and except for telephones used with 
public mobile services, telephones used with private radio services and 
secure telephones, every telephone listed in Sec. 68.112 must be hearing 
aid compatible, as defined in Sec. 68.316.
    (3) A telephone is hearing aid-compatible if it provides internal 
means for effective use with hearing aids that are designed to be 
compatible with telephones which meet established technical standards 
for hearing aid compatibility.
    (4) The Commission shall revoke or otherwise limit the exemptions of 
paragraph (a)((1) of this section for telephones used with public mobile 
services or telephones used with private radio services if it determines 
that (i) such revocation or limitation is in the public interest; (ii) 
continuation of the exemption without such revocation or limitation 
would have an adverse effect on hearing-impaired individuals; (iii) 
compliance with the requirements of Sec. 68.4(a)(1) is technologically 
feasible for the telephones to which the exemption applies; and (iv) 
compliance with the requirements of Sec. 68.4(a)(1) would not increase 
costs to such an extent that the telephones to which the exemption 
applies could not be successfully marketed.

[54 FR 21430, May 18, 1989, as amended at 55 FR 28763, July 13, 1990; 57 
FR 27183, June 18, 1992; 61 FR 42186, Aug. 14, 1996]



Sec. 68.5  Waivers.

    The Commission may, upon the application of any interested person, 
initiate a proceeding to waive the requirements of Sec. 68.4(a)(1) with 
respect to new telephones, or telephones associated with a new 
technology or service. The Commission shall not grant such a waiver 
unless it determines, on the basis of evidence in the record of such 
proceeding, that such telephones, or such technology or service, are in 
the

[[Page 337]]

public interest, and that (a) compliance with the requirements of 
Sec. 68.4(a)(1) is technologically infeasible, or (b) compliance with 
such requirements would increase the costs of the telephones, or of the 
technology or service, to such an extent that such telephones, 
technology, or service could not be successfully marketed. In any 
proceeding under this section to grant a waiver from the requirements of 
Sec. 68.4(a)(1), the Commission shall consider the effect on hearing-
impaired individuals of granting the waiver. The Commission shall 
periodically review and determine the continuing need for any waiver 
granted pursuant to this section.

[54 FR 21430, May 18, 1989]



Sec. 68.6  Telephones with volume control.

    As of January 1, 2000, all telephones, including cordless 
telephones, as defined in Sec. 15.3(j) of this chapter, manufactured in 
the United States (other than for export) or imported for use in the 
United States, must have volume control in accordance with Sec. 68.317. 
Secure telephones, as defined by Sec. 68.3 are exempt from this section, 
as are telephones used with public mobile services or private radio 
services.

[62 FR 43484, Aug. 14, 1997]



Sec. 68.7  Technical criteria for terminal equipment.

    (a) Terminal equipment shall not cause harm, as defined in 
Sec. 68.3, to the public switched telephone network.
    (b) Technical criteria published by the Administrative Council for 
Terminal Attachments are the presumptively valid technical criteria for 
the protection of the public switched telephone network from harms 
caused by the connection of terminal equipment, subject to the appeal 
procedures in Sec. 68.614 of this part.

[66 FR 7581, Jan. 24, 2001]



           Subpart B--Conditions on Use of Terminal Equipment



Sec. 68.100  General.

    In accordance with the rules and regulations in this part, terminal 
equipment may be directly connected to the public switched telephone 
network, including private line services provided over wireline 
facilities that are owned by providers of wireline telecommunications.

[66 FR 7581, Jan. 24, 2001]



Sec. 68.102  Terminal equipment approval requirement.

    Terminal equipment must be approved in accordance with the rules and 
regulations in subpart C of this part, or connected through protective 
circuitry that is approved in accordance with the rules and regulations 
in subpart C.

[66 FR 7582, Jan. 24, 2001]



Sec. 68.105  Minimum point of entry (MPOE) and demarcation point.

    (a) Facilities at the demarcation point. Carrier-installed 
facilities at, or constituting, the demarcation point shall consist of 
wire or a jack conforming to the technical criteria published by the 
Administrative Council for Terminal Attachments.
    (b) Minimum point of entry. The ``minimum point of entry'' (MPOE) as 
used herein shall be either the closest practicable point to where the 
wiring crosses a property line or the closest practicable point to where 
the wiring enters a multiunit building or buildings. The reasonable and 
nondiscriminatory standard operating practices of the provider of 
wireline telecommunications services shall determine which shall apply. 
The provider of wireline telecommunications services is not precluded 
from establishing reasonable classifications of multiunit premises for 
purposes of determining which shall apply. Multiunit premises include, 
but are not limited to, residential, commercial, shopping center and 
campus situations.
    (c) Single unit installations. For single unit installations 
existing as of August 13, 1990, and installations installed after that 
date the demarcation point shall be a point within 30 cm (12 in) of the 
protector or, where there is no protector, within 30 cm (12 in) of where 
the telephone wire enters the customer's premises, or as close thereto 
as practicable.

[[Page 338]]

    (d) Multiunit installations. (1) In multiunit premises existing as 
of August 13, 1990, the demarcation point shall be determined in 
accordance with the local carrier's reasonable and non-discriminatory 
standard operating practices. Provided, however, that where there are 
multiple demarcation points within the multiunit premises, a demarcation 
point for a customer shall not be further inside the customer's premises 
than a point twelve inches from where the wiring enters the customer's 
premises, or as close thereto as practicable.
    (2) In multiunit premises in which wiring is installed, including 
major additions or rearrangements of wiring existing prior to that date, 
the provider of wireline telecommunications may place the demarcation 
point at the minimum point of entry (MPOE). If the provider of wireline 
telecommunications services does not elect to establish a practice of 
placing the demarcation point at the minimum point of entry, the 
multiunit premises owner shall determine the location of the demarcation 
point or points. The multiunit premises owner shall determine whether 
there shall be a single demarcation point location for all customers or 
separate such locations for each customer. Provided, however, that where 
there are multiple demarcation points within the multiunit premises, a 
demarcation point for a customer shall not be further inside the 
customer's premises than a point 30 cm (12 in) from where the wiring 
enters the customer's premises, or as close thereto as practicable. At 
the time of installation, the provider of wireline telecommunications 
services shall fully inform the premises owner of its options and rights 
regarding the placement of the demarcation point or points and shall not 
attempt to unduly influence that decision for the purpose of obstructing 
competitive entry.
    (3) In any multiunit premises where the demarcation point is not 
already at the MPOE, the provider of wireline telecommunications 
services must comply with a request from the premises owner to relocate 
the demarcation point to the MPOE. The provider of wireline 
telecommunications services must negotiate terms in good faith and 
complete the negotiations within forty-five days from said request. 
Premises owners may file complaints with the Commission for resolution 
of allegations of bad faith bargaining by provider of wireline 
telecommunications services. See 47 U.S.C. 208; 47 CFR 1.720 through 
1.736 (1999).
    (4) The provider of wireline telecommunications services shall make 
available information on the location of the demarcation point within 
ten business days of a request from the premises owner. If the provider 
of wireline telecommunications services does not provide the information 
within that time, the premises owner may presume the demarcation point 
to be at the MPOE. Notwithstanding the provisions of Sec. 68.110(c) of 
this part, provider of wireline telecommunications services must make 
this information freely available to the requesting premises owner.
    (5) In multiunit premises with more than one customer, the premises 
owner may adopt a policy restricting a customer's access to wiring on 
the premises to only that wiring located in the customer's individual 
unit that serves only that particular customer.

[66 FR 7582, Jan. 24, 2001; 67 FR 60167, Sept. 25, 2002]



Sec. 68.106  Notification to provider of wireline telecommunications.

    (a) General. Customers connecting terminal equipment or protective 
circuitry to the public switched telephone network shall, upon request 
of the provider of wireline telecommunications, inform the provider of 
wireline telecommunications of the particular line(s) to which such 
connection is made, and any other information required to be placed on 
the terminal equipment pursuant to Sec. 68.354 of this part by the 
Administrative Council for Terminal Attachments.
    (b) Systems assembled of combinations of individually-approved 
terminal equipment and protective circuitry. Customers connecting such 
assemblages to the public switched telephone network shall, upon the 
request of the provider of wireline telecommunications, provide to the 
provider of wireline telecommunications the following information:

[[Page 339]]

    For each line:
    (1) Information required for compatible operation of the equipment 
with the communications facilities of the provider of wireline 
telecommunications;
    (2) The identifying information required to be placed on terminal 
equipment pursuant to Sec. 68.354 for all equipment dedicated to that 
line; and
    (3) Any other information regarding equipment dedicated to that line 
required to be placed on the terminal equipment by the Administrative 
Council for Terminal Attachments.
    (4) A list of identifying numbers required to be placed on terminal 
equipment, if any, by the Administrative Council for Terminal 
Attachments, pursuant to Sec. 68.354 of this part, for equipment to be 
used in the system.
    (c) Systems using other than ``fully protected'' premises wiring. 
Customers who intend to connect premises wiring other than ``fully 
protected'' premises wiring to the public switched telephone network 
shall, in addition to the foregoing, give notice to the provider of 
wireline telecommunications in accordance with Sec. 68.215(e).

[66 FR 7582, Jan. 24, 2001]



Sec. 68.108  Incidence of harm.

    Should terminal equipment, inside wiring, plugs and jacks, or 
protective circuitry cause harm to the public switched telephone 
network, or should the provider of wireline telecommunications 
reasonably determine that such harm is imminent, the provider of 
wireline telecommunications shall, where practicable, notify the 
customer that temporary discontinuance of service may be required; 
however, wherever prior notice is not practicable, the provider of 
wireline telecommunications may temporarily discontinue service 
forthwith, if such action is reasonable under the circumstances. In case 
of such temporary discontinuance, the provider of wireline 
telecommunications shall:
    (a) Promptly notify the customer of such temporary discontinuance;
    (b) Afford the customer the opportunity to correct the situation 
which gave rise to the temporary discontinuance; and
    (c) Inform the customer of his right to bring a complaint to the 
Commission pursuant to the procedures set forth in subpart E of this 
part.

[55 FR 28630, July 12, 1990, as amended at 66 FR 7583, Jan. 24, 2001]



Sec. 68.110  Compatibility of the public switched telephone network and terminal equipment.

    (a) Availability of interface information. Technical information 
concerning interface parameters not specified by the technical criteria 
published by the Administrative Council for Terminal Attachments, that 
are needed to permit terminal equipment to operate in a manner 
compatible with the communications facilities of a provider of wireline 
telecommunications, shall be provided by the provider of wireline 
telecommunications upon request.
    (b) Changes in the facilities, equipment, operations, or procedures 
of a provider of wireline telecommunications. A provider of wireline 
telecommunications may make changes in its communications facilities, 
equipment, operations or procedures, where such action is reasonably 
required in the operation of its business and is not inconsistent with 
the rules and regulations in this part. If such changes can be 
reasonably expected to render any customer's terminal equipment 
incompatible with the communications facilities of the provider of 
wireline telecommunications, or require modification or alteration of 
such terminal equipment, or otherwise materially affect its use or 
performance, the customer shall be given adequate notice in writing, to 
allow the customer an opportunity to maintain uninterrupted service.
    (c) Availability of inside wiring information. Any available 
technical information concerning wiring on the customer side of the 
demarcation point, including copies of existing schematic diagrams and 
service records, shall be provided by the provider of wireline 
telecommunications upon request of the building owner or agent thereof. 
The provider of wireline telecommunications may charge the building 
owner a reasonable fee for this service, which shall not exceed the cost 
involved in locating and copying the documents. In the alternative, the 
provider of

[[Page 340]]

wireline telecommunications may make these documents available for 
review and copying by the building owner. In this case, the provider of 
wireline telecommunications may charge a reasonable fee, which shall not 
exceed the cost involved in making the documents available, and may also 
require the building owner to pay a deposit to guarantee the documents' 
return.

[66 FR 7583, Jan. 24, 2001]



Sec. 68.112  Hearing aid-compatibility.

    (a) Coin telephones. All new and existing coin-operated telephones, 
whether located on public property or in a semi-public location (e.g., 
drugstore, gas station, private club).
    (b) Emergency use telephones. Telephones ``provided for emergency 
use'' include the following:
    (1) Telephones, except headsets, in places where a person with a 
hearing disability might be isolated in an emergency, including, but not 
limited to, elevators, highways, and tunnels for automobile, railway or 
subway, and workplace common areas.

    Note to paragraph (b)(1):
    Examples of workplace common areas include libraries, reception 
areas and similar locations where employees are reasonably expected to 
congregate.

    (2) Telephones specifically installed to alert emergency 
authorities, including, but not limited to, police or fire departments 
or medical assistance personnel.
    (3) Telephones, except headsets, in workplace non-common areas. 
Note: Examples of workplace non-common areas include private enclosed 
offices, open area individual work stations and mail rooms. Such non-
common area telephones are required to be hearing aid compatible, as 
defined in Sec. 68.316, by January 1, 2000, except for those telephones 
located in establishments with fewer than fifteen employees; and those 
telephones purchased between January 1, 1985 through December 31, 1989, 
which are not required to be hearing aid compatible, as defined in 
Sec. 68.316, until January 1, 2005.
    (i) Telephones, including headsets, made available to an employee 
with a hearing disability for use by that employee in his or her 
employment duty, shall, however, be hearing aid compatible, as defined 
in Sec. 68.316.
    (ii) As of January 1, 2000 or January 1, 2005, whichever date is 
applicable, there shall be a rebuttable presumption that all telephones 
located in the workplace are hearing aid compatible, as defined in 
Sec. 68.316. Any person who identifies a telephone as non-hearing aid-
compatible, as defined in Sec. 68.316, may rebut this presumption. Such 
telephone must be replaced within fifteen working days with a hearing 
aid compatible telephone, as defined in Sec. 68.316, including, on or 
after January 1, 2000, with volume control, as defined in Sec. 68.317.
    (iii) Telephones, not including headsets, except those headsets 
furnished under paragraph (b)(3)(i) of this section, that are purchased, 
or replaced with newly acquired telephones, must be:
    (A) Hearing aid compatible, as defined in Sec. 68.316, after October 
23, 1996; and
    (B) Include volume control, as defined in Sec. 68.317, on or after 
January 1, 2000.
    (iv) When a telephone under paragraph (b)(3)(iii) of this section is 
replaced with a telephone from inventory existing before October 23, 
1996, any person may make a bona fide request that such telephone be 
hearing aid compatible, as defined in Sec. 68.316. If the replacement 
occurs on or after January 1, 2000, the telephone must have volume 
control, as defined in Sec. 68.317. The telephone shall be provided 
within fifteen working days.
    (v) During the period from October 23, 1996, until the applicable 
date of January 1, 2000 or January 1, 2005, workplaces of fifteen or 
more employees also must provide and designate telephones for emergency 
use by employees with hearing disabilities through one or more of the 
following means:
    (A) By having at least one coin-operated telephone, one common area 
telephone or one other designated hearing aid compatible telephone 
within a reasonable and accessible distance for an individual searching 
for a telephone from any point in the workplace; or

[[Page 341]]

    (B) By providing wireless telephones that meet the definition for 
hearing aid compatible for wireline telephones, as defined in 
Sec. 68.316, for use by employees in their employment duty outside 
common areas and outside the offices of employees with hearing 
disabilities.
    (4) All credit card operated telephones, whether located on public 
property or in a semipublic location (e.g., drugstore, gas station, 
private club), unless a hearing aid compatible (as defined in 
Sec. 68.316) coin-operated telephone providing similar services is 
nearby and readily available. However, regardless of coin-operated 
telephone availability, all credit card operated telephones must be made 
hearing aid-compatible, as defined in Sec. 68.316, when replaced, or by 
May 1, 1991, which ever comes sooner.
    (5) Telephones needed to signal life threatening or emergency 
situations in confined settings, including but not limited to, rooms in 
hospitals, residential health care facilities for senior citizens, and 
convalescent homes:
    (i) A telephone that is hearing aid compatible, as defined in 
Sec. 68.316, is not required until:
    (A) November 1, 1997, for establishments with fifty or more beds, 
unless replaced before that time; and
    (B) November 1, 1998, for all other establishments with fewer than 
fifty beds, unless replaced before that time.
    (ii) Telephones that are purchased, or replaced with newly acquired 
telephones, must be:
    (A) Hearing aid compatible, as defined in Sec. 68.116, after October 
23, 1996; and
    (B) Include volume control, as defined in Sec. 68.317, on or after 
January 1, 2000.
    (iii) Unless a telephone in a confined setting is replaced pursuant 
to paragraph (b)(5)(ii) of this section, a hearing aid compatible 
telephone shall not be required if:
    (A) A telephone is both purchased and maintained by a resident for 
use in that resident's room in the establishment; or
    (B) The confined setting has an alternative means of signalling 
life-threatening or emergency situations that is available, working and 
monitored.
    (6) Telephones in hotel and motel guest rooms, and in any other 
establishment open to the general public for the purpose of overnight 
accommodation for a fee. Such telephones are required to be hearing aid 
compatible, as defined in Sec. 68.316, except that, for establishments 
with eighty or more guest rooms, the telephones are not required to be 
hearing aid compatible, as defined in Sec. 68.316, until November 1, 
1998; and for establishments with fewer than eighty guest rooms, the 
telephones are not required to be hearing aid compatible, as defined in 
Sec. 68.316, until November 1, 1999.
    (i) Anytime after October 23, 1996, if a hotel or motel room is 
renovated or newly constructed, or the telephone in a hotel or motel 
room is replaced or substantially, internally repaired, the telephone in 
that room must be:
    (A) Hearing aid compatible, as defined in Sec. 68.316, after October 
23, 1996; and
    (B) Include volume control, as defined in Sec. 68.317, on or after 
January 1, 2000.
    (ii) The telephones in at least twenty percent of the guest rooms in 
a hotel or motel must be hearing aid compatible, as defined in 
Sec. 68.316, as of April 1, 1997.
    (iii) Notwithstanding the requirements of paragraph (b)(6) of this 
section, hotels and motels which use telephones purchased during the 
period January 1, 1985 through December 31, 1989 may provide telephones 
that are hearing aid compatible, as defined in Sec. 68.316, in guest 
rooms according to the following schedule:
    (A) The telephones in at least twenty percent of the guest rooms in 
a hotel or motel must be hearing aid compatible, as defined in 
Sec. 68.316, as of April 1, 1997;
    (B) The telephones in at least twenty-five percent of the guest 
rooms in a hotel or motel must be hearing aid compatible, as defined in 
Sec. 68.316, by November 1, 1999; and
    (C) The telephones in one-hundred percent of the guest rooms in a 
hotel or motel must be hearing aid compatible, as defined in 
Sec. 68.316, by January 1, 2001 for establishments with eighty or more 
guest rooms, and by January 1, 2004 for establishments with fewer than 
eighty guest rooms.

[[Page 342]]

    (c) Telephones frequently needed by the hearing impaired. Closed 
circuit telephones, i.e., telephones which cannot directly access the 
public switched network, such as telephones located in lobbies of hotels 
or apartment buildings; telephones in stores which are used by patrons 
to order merchandise; telephones in public transportation terminals 
which are used to call taxis or to reserve rental automobiles, need not 
be hearing aid compatible, as defined in Sec. 68.316, until replaced.

[49 FR 1362, Jan. 11, 1984, as amended at 55 FR 28763, July 13, 1990; 57 
FR 27183, June 18, 1992; 61 FR 42186, Aug. 14, 1996; 61 FR 42392, Aug. 
15, 1996; 62 FR 43484, Aug. 14, 1997; 62 FR 51064, Sep. 30, 1997]



Sec. 68.160  Designation of Telecommunication Certification Bodies (TCBs).

    (a) The Commission may designate Telecommunication Certification 
Bodies (TCBs) to approve equipment as required under this part. 
Certification of equipment by a TCB shall be based on an application 
with all the information specified in this part. The TCB shall process 
the application to determine whether the product meets the Commission's 
requirements and shall issue a written grant of equipment authorization. 
The grant shall identify the TCB and the source of authority for issuing 
it.
    (b) The Federal Communications Commission shall designate TCBs in 
the United States to approve equipment subject to certification under 
the Commission's rules. TCBs shall be accredited by the National 
Institute of Standards and Technology (NIST) under its National 
Voluntary Conformity Assessment Evaluation (NVCASE) program or other 
recognized programs based on ISO/IEC Guide 65, to comply with the 
Commission's qualification criteria for TCBs. NIST may, in accordance 
with its procedures, allow other appropriately qualified accrediting 
bodies to accredit TCBs and testing laboratories. TCBs shall comply with 
the requirements in Sec. 68.162 of this part.
    (c) In accordance with the terms of an effective bilateral or 
multilateral mutual recognition agreement or arrangement (MRA) to which 
the United States is a party, bodies outside the United States shall be 
permitted to authorize equipment in lieu of the Commission. A body in an 
MRA partner economy may authorize equipment to U.S. requirements only if 
that economy permits bodies in the United States to authorize equipment 
to its requirements. The authority designating these telecommunication 
certification bodies shall meet the following criteria.
    (1) The organization accrediting the prospective telecommunication 
certification body shall be capable of meeting the requirements and 
conditions of ISO/IEC Guide 61.
    (2) The organization assessing the telecommunication certification 
body shall appoint a team of qualified experts to perform the assessment 
covering all of the elements within the scope of accreditation. For 
assessment of telecommunications equipment, the areas of expertise to be 
used during the assessment shall include, but not be limited to, 
electromagnetic compatibility and telecommunications equipment (wired 
and wireless).

[64 FR 4997, Feb. 2, 1999]



Sec. 68.162  Requirements for Telecommunication Certification Bodies.

    (a) Telecommunication certification bodies (TCBs) designated by the 
Commission, or designated by another authority pursuant to an effective 
mutual recognition agreement or arrangement to which the United States 
is a party, shall comply with the following requirements.
    (b) Certification methodology. (1) The certification system shall be 
based on type testing as identified in sub-clause 1.2(a) of ISO/IEC 
Guide 65.
    (2) Certification shall normally be based on testing no more than 
one unmodified representative sample of each product type for which 
certification is sought. Additional samples may be requested if clearly 
warranted, such as when certain tests are likely to render a sample 
inoperative.
    (c) Criteria for designation. (1) To be designated as a TCB under 
this section, an entity shall, by means of accreditation, meet all the 
appropriate specifications in ISO/IEC Guide 65 for the scope of 
equipment it will certify. The

[[Page 343]]

accreditation shall specify the group of equipment to be certified and 
the applicable regulations for product evaluation.
    (2) The TCB shall demonstrate expert knowledge of the regulations 
for each product with respect to which the body seeks designation. Such 
expertise shall include familiarity with all applicable technical 
regulations, administrative provisions or requirements, as well as the 
policies and procedures used in the application thereof.
    (3) The TCB shall have the technical expertise and capability to 
test the equipment it will certify and shall also be accredited in 
accordance with ISO/IEC Guide 25 to demonstrate it is competent to 
perform such tests.
    (4) The TCB shall demonstrate an ability to recognize situations 
where interpretations of the regulations or test procedures may be 
necessary. The appropriate key certification and laboratory personnel 
shall demonstrate a knowledge of how to obtain current and correct 
technical regulation interpretations. The competence of the 
telecommunication certification body shall be demonstrated by 
assessment. The general competence, efficiency, experience, familiarity 
with technical regulations and products included in those technical 
regulations, as well as compliance with applicable parts of the ISO/IEC 
Guides 25 and 65, shall be taken into consideration.
    (5) A TCB shall participate in any consultative activities, 
identified by the Commission or NIST, to facilitate a common 
understanding and interpretation of applicable regulations.
    (6) The Commission will provide public notice of specific elements 
of these qualification criteria that will be used to accredit TCBs.
    (d) Sub-contractors. (1) In accordance with the provisions of sub-
clause 4.4 of ISO/IEC Guide 65, the testing of a product, or a portion 
thereof, may be performed by a sub-contractor of a designated TCB, 
provided the laboratory has been assessed by the TCB as competent and in 
compliance with the applicable provisions of ISO/IEC Guide 65 and other 
relevant standards and guides.
    (2) When a subcontractor is used, the TCB shall be responsible for 
the test results and shall maintain appropriate oversight of the 
subcontractor to ensure reliability of the test results. Such oversight 
shall include periodic audits of products that have been tested.
    (e) Designation of TCBs. (1) The Commission will designate as a TCB 
any organization that meets the qualification criteria and is accredited 
by NIST or its recognized accreditor.
    (2) The Commission will withdraw the designation of a TCB if the 
TCB's accreditation by NIST or its recognized accreditor is withdrawn, 
if the Commission determines there is just cause for withdrawing the 
designation, or if the TCB requests that it no longer hold the 
designation. The Commission will provide a TCB with 30 days notice of 
its intention to withdraw the designation and provide the TCB with an 
opportunity to respond.
    (3) A list of designated TCBs will be published by the Commission.
    (f) Scope of responsibility. (1) TCBs shall certify equipment in 
accordance with the Commission's rules and policies.
    (2) A TCB shall accept test data from any source, subject to the 
requirements in ISO/IEC Guide 65, and shall not unnecessarily repeat 
tests.
    (3) TCBs may establish and assess fees for processing certification 
applications and other tasks as required by the Commission.
    (4) A TCB may rescind a grant of certification within 30 days of 
grant for administrative errors. After that time, a grant can only be 
revoked by the Commission. A TCB shall notify both the applicant and the 
Commission when a grant is rescinded.
    (5) A TCB may not:
    (i) Grant a waiver of the rules, or certify equipment for which the 
Commission rules or requirements do not exist or for which the 
application of the rules or requirements is unclear.
    (ii) Take enforcement actions.
    (6) All TCB actions are subject to Commission review.
    (g) Post-certification requirements. (1) A TCB shall supply a copy 
of each approved application form and grant of certification to the 
Commission.

[[Page 344]]

    (2) In accordance with ISO/IEC Guide 65, a TCB is required to 
conduct appropriate surveillance activities. These activities shall be 
based on type testing a few samples of the total number of product types 
which the certification body has certified. Other types of surveillance 
activities of a product that has been certified are permitted, provided 
they are no more onerous than testing type. The Commission may at any 
time request a list of products certified by the certification body and 
may request and receive copies of product evaluation reports. The 
Commission may also request that a TCB perform post-market surveillance, 
under Commission guidelines, of a specific product it has certified.
    (3) If during post market surveillance of a certified product, a 
certification body determines that a product fails to comply with the 
applicable technical regulations, the certification body shall 
immediately notify the grantee and the Commission. A follow-up report 
shall also be provided within thirty days of the action taken by the 
grantee to correct the situation.
    (4) Where concerns arise, the TCB shall provide a copy of the 
application file to the Commission within 30 calendar days of a request 
for the file made by the Commission to the TCB and the manufacturer. 
Where appropriate, the file should be accompanied by a request for 
confidentiality for any material that may qualify for confidential 
treatment under the Commission's Rules. If the application file is not 
provided within 30 calendar days, a statement shall be provided to the 
Commission as to why it cannot be provided.
    (h) In case of a dispute with respect to designation or recognition 
of a TCB and the testing or certification of products by a TCB, the 
Commission will be the final arbiter. Manufacturers and designated TCBs 
will be afforded at least 30 days to comment before a decision is 
reached. In the case of a TCB designated or recognized, or a product 
certified pursuant to an effective bilateral or multilateral mutual 
recognition agreement or arrangement (MRA) to which the United States is 
a party, the Commission may limit or withdraw its recognition of a TCB 
designated by an MRA party and revoke the certification of products 
using testing or certification provided by such a TCB. The Commission 
shall consult with the Office of the United States Trade Representative 
(USTR), as necessary, concerning any disputes arising under an MRA for 
compliance with under the Telecommunications Trade Act of 1988 (Section 
1371-1382 of the Omnibus Trade and Competitiveness Act of 1988).

[64 FR 4998, Feb. 2, 1999, as amended at 66 FR 27601, May 18, 2001]

    Effective Date Note: At 67 FR 57182, Sept. 9, 2002, Sec. 68.162 was 
amended by revising paragraphs (f)(5)(i) and (g)(1), effective Oct. 9, 
2002. For the convenience of the user, the revised text is set forth as 
follows:

Sec. 68.162  Requirements for Telecommunication Certification Bodies.

                                * * * * *

    (f) * * *
    (5) * * *
    (i) Grant a waiver of Commission rules or technical criteria 
published by the Administrative Council, or certify equipment for which 
Commission rules or requirements, or technical criteria do not exist, or 
for which the application of the rules or requirements, or technical 
criteria is unclear.

                                * * * * *

    (g) * * *
    (1) A Telecommunications Certification Body shall supply a copy of 
each approved application form and grant of certification to the 
Administrative Council for Terminal Attachments.

                                * * * * *



            Subpart C--Terminal Equipment Approval Procedures



Sec. 68.201  Connection to the public switched telephone network.

    Terminal equipment may not be connected to the public switched 
telephone network unless it has either been certified by a 
Telecommunications Certification Body or the responsible party has 
followed all the procedures in this subpart for Supplier's Declaration 
of Conformity.

[66 FR 7583, Jan. 24, 2001]

[[Page 345]]



Sec. 68.211  Terminal equipment approval revocation procedures.

    (a) Causes for revocation. The Commission may revoke the 
interconnection authorization of terminal equipment, whether that 
authorization was acquired through certification by a Telecommunications 
Certification Body or through the Supplier's Declaration of Conformity 
process in Secs. 68.320 through 68.350 of this part, where:
    (1) The equipment approval is shown to have been obtained by 
misrepresentation;
    (2) The approved equipment is shown to cause harms to the public 
switched telephone network, as defined in Sec. 68.3;
    (3) The responsible party willfully or repeatedly fails to comply 
with the terms and conditions of its equipment approval; or
    (4) The responsible party willfully or repeatedly fails to comply 
with any rule, regulation or order issued by the Commission under the 
Communications Act of 1934 relating to terminal equipment.
    (b) Notice of intent to revoke interconnection authority. Before 
revoking interconnection authority under the provisions of this section, 
the Commission, or the Wireline Competition Bureau under delegated 
authority, will issue a written Notice of Intent to Revoke Part 68 
Interconnection Authority, or a Joint Notice of Apparent Liability for 
Forfeiture and Notice of Intent to Revoke Part 68 Interconnection 
Authority pursuant to Secs. 1.80 and 1.89 of this chapter.
    (c) Delivery. The notice will be sent via certified mail to the 
responsible party for the terminal equipment at issue at the address 
provided to the Administrative Council for Terminal Attachments.
    (d) Reauthorization. A product that has had its approval revoked may 
not be authorized for connection to the public switched telephone 
network for a period of six months from the date of revocation of the 
approval.
    (e) Reconsideration or appeal. A responsible party of terminal 
equipment that has had its authorization revoked and/or that has been 
assessed a forfeiture may request reconsideration or make administrative 
appeal of the decision pursuant to part 1 of the Commission's rules: 
Practice and Procedure, part 1 of this chapter.

[66 FR 7583, Jan. 24, 2001, as amended at 67 FR 13229, Mar. 21, 2002]



Sec. 68.213  Installation of other than ``fully protected'' non-system simple customer premises wiring.

    (a) Scope of this rule. Provisions of this rule apply only to 
``unprotected'' premises wiring used with simple installations of wiring 
for up to four line residential and business telephone service. More 
complex installations of wiring for multiple line services, for use with 
systems such as PBX and key telephone systems, are controlled by 
Sec. 68.215 of these rules.
    (b) Wiring authorized. Unprotected premises wiring may be used to 
connect units of terminal equipment or protective circuitry to one 
another, and to carrier-installed facilities if installed in accordance 
with these rules. The provider of wireline telecommunications is not 
responsible, except pursuant to agreement between it and the customer or 
undertakings by it, otherwise consistent with Commission requirements, 
for installation and maintenance of wiring on the subscriber's side of 
the demarcation point, including any wire or jacks that may have been 
installed by the carrier. The subscriber and/or premises owner may 
install wiring on the subscriber's side of the demarcation point, and 
may remove, reconfigure, and rearrange wiring on that side of the 
demarcation point including wiring and wiring that may have been 
installed by the carrier. The customer or premises owner may not access 
carrier wiring and facilities on the carrier's side of the demarcation 
point. Customers may not access the protector installed by the provider 
of wireline telecommunications. All plugs and jacks used in connection 
with inside wiring shall conform to the published technical criteria of 
the Administrative Council for Terminal Attachments. In multiunit 
premises with more than one customer, the premises owner may adopt a 
policy restricting a customer's access to wiring on the premises to only 
that wiring located in the customer's individual unit wiring

[[Page 346]]

that serves only that particular customer. See Sec. 68.105 in this part. 
The customer or premises owner may not access carrier wiring and 
facilities on the carrier's side of the demarcation point. Customers may 
not access the protector installed by the provider of wireline 
telecommunications. All plugs and jacks used in connection with inside 
wiring shall conform to the published technical criteria of the 
Administrative Council for Terminal Attachments.
    (c) Material requirements. (1) For new installations and 
modifications to existing installations, copper conductors shall be, at 
a minimum, solid, 24 gauge or larger, twisted pairs that comply with the 
electrical specifications for Category 3, as defined in the ANSI EIA/TIA 
Building Wiring Standards.
    (2) Conductors shall have insulation with a 1500 Volt rms minimum 
breakdown rating. This rating shall be established by covering the 
jacket or sheath with at least 15 cm (6 inches) (measured linearly on 
the cable) of conductive foil, and establishing a potential difference 
between the foil and all of the individual conductors connected 
together, such potential difference gradually increased over a 30 second 
time period to 1500 Volts rms, 60 Hertz, then applied continuously for 
one minute. At no time during this 90 second time interval shall the 
current between these points exceed 10 milliamperes peak.
    (3) All wire and connectors meeting the requirements set forth in 
paragraphs (c)(1) and (c)(2) shall be marked, in a manner visible to the 
consumer, with the symbol ``CAT 3'' or a symbol consisting of a ``C'' 
with a ``3'' contained within the ``C'' character, at intervals not to 
exceed one foot (12 inches) along the length of the wire.
    (d) Attestation. Manufacturers (or distributors or retailers, 
whichever name appears on the packaging) of non-system telephone 
premises wire shall attest in a letter to the Commission that the wire 
conforms with part 68, FCC Rules.

[49 FR 21734, May 23, 1984, as amended at 50 FR 29392, July 19, 1985; 50 
FR 47548, Nov. 19, 1985; 51 FR 944, Jan. 9, 1986; 55 FR 28630, July 12, 
1990; 58 FR 44907, Aug. 25, 1993; 62 FR 36464, July 8, 1997; 65 FR 4140, 
Jan. 26, 2000; 66 FR 7583, Jan. 24, 2001]



Sec. 68.214  Changes in other than ``fully protected'' premises wiring that serves fewer than four subscriber access lines.

    Operations associated with the installation, connection, 
reconfiguration and removal (other than final removal) of premises 
wiring that serves fewer than four subscriber access lines must be 
performed as provided in Sec. 68.215(c) if the premises wiring is not 
``fully protected.'' For this purpose, the supervisor and installer may 
be the same person.

[66 FR 7584, Jan. 24, 2001]



Sec. 68.215  Installation of other than ``fully protected'' system premises wiring that serves more than four subscriber access lines.

    (a) Types of wiring authorized--(1) Between equipment entities. 
Unprotected premises wiring, and protected premises wiring requiring 
acceptance testing for imbalance, may be used to connect separately-
housed equipment entities to one another.
    (2) Between an equipment entity and the public switched telephone 
network interface(s). Fully-protected premises wiring shall be used to 
connect equipment entities to the public switched telephone network 
interface unless the provider of wireline telecommunications is 
unwilling or unable to locate the interface within 7.6 meters (25 feet) 
of the equipment entity on reasonable request. In any such case, other 
than fully-protected premises wiring may be used if otherwise in 
accordance with these rules.
    (3) Hardware protection as part of the facilities of the provider of 
wireline telecommunications. In any case where the carrier chooses to 
provide (and the customer chooses to accept, except as authorized under 
paragraph (g) of this

[[Page 347]]

section), hardware protection on the network side of the interface(s), 
the presence of such hardware protection will affect the classification 
of premises wiring for the purposes of Sec. 68.215, as appropriate.
    (b) Installation personnel. Operations associated with the 
installation, connection, reconfiguration and removal (other than final 
removal of the entire premises communications system) of other than 
fully-protected premises wiring shall be performed under the supervision 
and control of a supervisor, as defined in paragraph (c) of this 
section. The supervisor and installer may be the same person.
    (c) Supervision. Operations by installation personnel shall be 
performed under the responsible supervision and control of a person who:
    (1) Has had at least six months of on-the-job experience in the 
installation of telephone terminal equipment or of wiring used with such 
equipment;
    (2) Has been trained by the registrant of the equipment to which the 
wiring is to be connected in the proper performance of any operations by 
installation personnel which could affect that equipment's continued 
compliance with these rules;
    (3) Has received written authority from the registrant to assure 
that the operations by installation personnel will be performed in such 
a manner as to comply with these rules.
    (4) Or, in lieu of paragraphs (c) (1) through (3) of this section, 
is a licensed professional engineer in the jurisdiction in which the 
installation is performed.
    (d) Workmanship and material requirements--(1) General. Wiring shall 
be installed so as to assure that there is adequate insulation of 
telephone wiring from commercial power wiring and grounded surfaces. 
Wiring is required to be sheathed in an insulating jacket in addition to 
the insulation enclosing individual conductors (see below) unless 
located in an equipment enclosure or in an equipment room with 
restricted access; it shall be assured that this physical and electrical 
protection is not damaged or abraded during placement of the wiring. Any 
intentional removal of wiring insulation (or a sheath) for connections 
or splices shall be accomplished by removing the minimum amount of 
insulation necessary to make the connection or splice, and insulation 
equivalent to that provided by the wire and its sheath shall be suitably 
restored, either by placement of the splices or connections in an 
appropriate enclosure, or equipment rooms with restricted access, or by 
using adequately-insulated connectors or splicing means.
    (2) Wire. Insulated conductors shall have a jacket or sheath with a 
1500 volt rms minimum breakdown rating, except when located in an 
equipment enclosure or an equipment room with restricted access. This 
rating shall be established by covering the jacket or sheath with at 
least 15 cm (6 in) (measured linearly on the cable) of conductive foil, 
and establishing a potential difference between the foil and all of the 
individual conductors connected together, such potential difference 
gradually increased over a 30 second time period to 1500 volts rms, 60 
Hertz, then applied continuously for one minute. At no time during this 
90 second time interval shall the current between these points exceed 10 
milliamperes peak.
    (3) Places where the jacket or sheath has been removed. Any point 
where the jacket or sheath has been removed (or is not required) shall 
be accessible for inspection. If such points are concealed, they shall 
be accessible without disturbing permanent building finish (e.g., by 
removing a cover).
    (4) Building and electrical codes. All building and electrical codes 
applicable in the jurisdiction to telephone wiring shall be complied 
with. If there are no such codes applicable to telephone wiring, Article 
800 of the 1978 National Electrical Code, entitled Communications 
Systems, and other sections of that Code incorporated therein by 
reference shall be complied with.
    (5) Limitations on electrical signals. Only signal sources that 
emanate from the provider of wireline telecommunications central office, 
or that are generated in equipment at the customer's premises and are 
``non-hazardous voltage sources'' as defined in the technical

[[Page 348]]

criteria published by the Administrative Council for Terminal 
Attachments, may be routed in premises telephone wiring, except for 
voltages for network control signaling and supervision that are 
consistent with standards employed by the provider of wireline 
telecommunications. Current on individual wiring conductors shall be 
limited to values which do not cause an excessive temperature rise, with 
due regard to insulation materials and ambient temperatures. The 
following table assumes a 45 deg. C temperature rise for wire sizes 22 
AWG or larger, and a 40 deg. C rise for wire sizes smaller than 22 AWG, 
for poly-vinyl chloride insulating materials, and should be regarded as 
establishing maximum values to be derated accordingly in specific 
installations where ambient temperatures are in excess of 25 deg. C:

    Maximum Continuous Current Capacity of PVC Insulated Copper Wire,
                                Confined
------------------------------------------------------------------------
                                                               Maximum
                Wire size, AWG                    Circular     current,
                                                    mils       amperes
------------------------------------------------------------------------
32............................................         63.2         0.32
30............................................        100.5         0.52
28............................................        159.8         0.83
26............................................        254.1          1.3
24............................................        404.0          2.1
22............................................        642.4          5.0
20............................................         1022          7.5
18............................................         1624           10
------------------------------------------------------------------------
Note: The total current in all conductors of multiple conductor cables
  may not exceed 20% of the sum of the individual ratings of all such
  conductors.

    (6) Physical protection. In addition to the general requirements 
that wiring insulation be adequate and not damaged during placement of 
the wiring, wiring shall be protected from adverse effects of weather 
and the environment in which it is used. Where wiring is attached to 
building finish surfaces (surface wiring), it shall be suitably 
supported by means which do not affect the integrity of the wiring 
insulation.
    (e) Documentation requirements. A notarized affidavit and one copy 
thereof shall be prepared by the installation supervisor in advance of 
each operation associated with the installation, connection, 
reconfiguration and removal of other than fully-protected premises 
wiring (except when accomplished functionally using a cross-connect 
panel), except when involved with removal of the entire premises 
communications system using such wiring. This affidavit and its copy 
shall contain the following information:
    (1) The responsible supervisor's full name, business address and 
business telephone number.
    (2) The name of the registrant(s) (or manufacturer(s), if 
grandfathered equipment is involved) of any equipment to be used 
electrically between the wiring and the telephone network interface, 
which does not contain inherent protection against hazardous voltages 
and longitudinal imbalance.
    (3) A statement as to whether the supervisor complies with 
Sec. 68.215(c). Training and authority under Sec. 68.215(c)(2)-(3) is 
required from the registrant (or manufacturer, if grandfathered 
equipment is involved) of the first piece of equipment electrically 
connected to the telephone network interface, other than passive 
equipments such as extensions, cross-connect panels, or adapters. In 
general, this would be the registrant (or manufacturer) of a system's 
common equipment.
    (4) The date(s) when placement and connection of the wiring will 
take place.
    (5) The business affiliation of the installation personnel.
    (6) Identification of specific national and local codes which will 
be adhered to.
    (7) The manufacturer(s); a brief description of the wire which will 
be used (model number or type); its conformance with recognized 
standards for wire if any (e.g., Underwriters Laboratories listing, 
Rural Electrification Administration listing, ``KS-'' specification, 
etc.); and a general description of the attachment of the wiring to the 
structure (e.g., run in conduit or ducts exclusively devoted to 
telephone wiring, ``fished'' through walls, surface attachment, etc.).
    (8) The date when acceptance testing for imbalance will take place.
    (9) The supervisor's signature. The notarized original shall be 
submitted to the provider of wireline telecommunications at least ten 
calendar days in advance of the placement and connection of the wiring. 
This time period may be changed by agreement of

[[Page 349]]

the provider of wireline telecommunications and the supervisor. The copy 
shall be maintained at the premises, available for inspection, so long 
as the wiring is used for telephone service.
    (f) Acceptance testing for imbalance. Each telephone network 
interface that is connected directly or indirectly to other than fully-
protected premises wiring shall be subjected to the acceptance test 
procedures specified in this section whenever an operation associated 
with the installation, connection, reconfiguration or removal of this 
wiring (other than final removal) has been performed.
    (1) Test procedure for two-way or outgoing lines or loops. A 
telephone instrument may be associated directly or indirectly with the 
line or loop to perform this test if one is not ordinarily available to 
it:
    (i) Lift the handset of the telephone instrument to create the off-
hook state on the line or loop under test.
    (ii) Listen for noise. Confirm that there is neither audible hum nor 
excessive noise.
    (iii) Listen for dial tone. Confirm that dial tone is present.
    (iv) Break dial tone by dialing a digit. Confirm that dial tone is 
broken as a result of dialing.
    (v) With dial tone broken, listen for audible hum or excessive 
noise. Confirm that there is neither audible hum nor excessive noise.
    (2) Test procedure for incoming-only (non-originating) lines or 
loops. A telephone instrument may be associated directly or indirectly 
with the line or loop to perform this test if one is not ordinarily 
available to it:
    (i) Terminate the line or loop under test in a telephone instrument 
in the on-hook state.
    (ii) Dial the number of the line or loop under test from another 
station, blocking as necessary other lines or loops to cause the line or 
loop under test to be reached.
    (iii) On receipt of ringing on the line or loop under test, lift the 
handset of the telephone instrument to create the off-hook state on that 
line or loop.
    (iv) Listen for audible hum or excessive noise. Confirm that there 
is neither audible hum nor excessive noise.
    (3) Failure of acceptance test procedures. Absence of dial tone 
before dialing, inability to break dial tone, or presence of audible hum 
or excessive noise (or any combination of these conditions) during test 
of two-way or outgoing lines or loops indicates failure. Inability to 
receive ringing, inability to break ringing by going off-hook, or 
presence of audible hum or excessive noise (or any combination of these 
conditions) during test of incoming-only lines or loops indicates 
failure. Upon any such failure, the failing equipment or portion of the 
premises communications system shall be disconnected from the network 
interface, and may not be reconnected until the cause of the failure has 
been isolated or removed. Any previously tested lines or loops shall be 
retested if they were in any way involved in the isolation and removal 
of the cause of the failure.
    (4) Monitoring or participation in acceptance testing by the 
provider of wireline telecommunications. The provider of wireline 
telecommunications may monitor or participate in the acceptance testing 
required under this section, in accordance with Sec. 68.215(g) of this 
part, from its central office test desk or otherwise.
    (g) Extraordinary procedures. The provider of wireline 
communications is hereby authorized to limit the subscriber's right of 
connecting approved terminal equipment or protective circuitry with 
other than fully-protected premises wiring, but solely in accordance 
with this paragraph and Sec. 68.108 of these rules.
    (1)(i) Conditions that may invoke these procedures. The 
extraordinary procedures authorized herein may only be invoked where one 
or more of the following conditions is present:
    (A) Information provided in the supervisor's affidavit gives reason 
to believe that a violation of part 68 of the FCC's rules is likely.
    (B) A failure has occurred during acceptance testing for imbalance.
    (C) Harm has occurred, and there is reason to believe that this harm 
was a result of wiring operations performed under this section.
    (ii) The extraordinary procedures authorized in the following 
subsections shall not be used so as to discriminate

[[Page 350]]

between installations by provider of wireline telecommunications 
personnel and installations by others. In general, this requires that 
any charges for these procedures be levied in accordance with, or 
analogous to, the ``maintenance of service'' tariff provisions: If the 
installation proves satisfactory, no charge should be levied.
    (2) Monitoring or participation in acceptance testing for imbalance. 
Notwithstanding the previous sub-section, the provider of wireline 
telecommunications may monitor or participate in acceptance testing for 
imbalance at the time of the initial installation of wiring in the 
absence of the conditions listed therein; at any other time, on or more 
of the listed conditions shall be present. Such monitoring or 
participation in acceptance testing should be performed from the central 
office test desk where possible to minimize costs.
    (3) Inspection. Subject to paragraph (g)(1) of this section, the 
provider of wireline telecommunications may inspect wiring installed 
pursuant to this section, and all of the splicing and connection points 
required to be accessible by Sec. 68.215(d)(3) to determine compliance 
with this section. The user or installation supervisor shall either 
authorize the provider of wireline telecommunications to render the 
splicing and inspection points visible (e.g., by removing covers), or 
perform this action prior to the inspection. To minimize disruption of 
the premises communications system, the right of inspecting is limited 
as follows:
    (i) During initial installation of wiring:
    (A) The provider of wireline telecommunications may require 
withdrawal of up to 5 percent (measured linearly) of wiring run 
concealed in ducts, conduit or wall spaces, to determine conformance of 
the wiring to the information furnished in the affidavit.
    (B) In the course of any such inspection, the provider of wireline 
telecommunications shall have the right to inspect documentation 
required to be maintained at the premises under Sec. 68.215(e).
    (ii) After failure of acceptance testing or after harm has resulted 
from installed wiring: The provider of wireline telecommunications may 
require withdrawal of all wiring run concealed in ducts, conduit or wall 
spaces which reasonably could have caused the failure or harm, to 
determine conformance of the wiring to the information furnished in the 
affidavit.
    (iii) In the course of any such inspection, the provider of wireline 
telecommunications shall have the right to inspect documentation 
required to be maintained at the premises under Sec. 68.215(e).
    (4) Requiring the use of protective apparatus. In the event that any 
of the conditions listed in paragraph (g)(1) of this section, arises, 
and is not permanently remedied within a reasonable time period, the 
provider of wireline telecommunications may require the use of 
protective apparatus that either protects solely against hazardous 
voltages, or that protects both against hazardous voltages and 
imbalance. Such apparatus may be furnished either by the provider of 
wireline telecommunications or by the customer. This right is in 
addition to the rights of the provider of wireline telecommunications 
under Sec. 68.108.
    (5) Notice of the right to bring a complaint. In any case where the 
provider of wireline telecommunications invokes the extraordinary 
procedures of Sec. 68.215(g), it shall afford the customer the 
opportunity to correct the situation that gave rise to invoking these 
procedures, and inform the customer of the right to bring a complaint to 
the Commission pursuant to the procedures set forth in subpart E of this 
part. On complaint, the Commission reserves the right to perform any of 
the inspections authorized under this section, and to require the 
performance of acceptance tests.
    (h) Limitations on the foregoing if protected wiring requiring 
acceptance testing is used. If protected wiring is used which required 
acceptance testing, the requirements in the foregoing paragraphs of 
Sec. 68.215 are hereby limited, as follows:
    (1) Supervision. Section 68.215(c)(2)-(3) are hereby waived. The 
supervisor is only required to have had at least six months of on-the-
job experience in the installation of telephone terminal equipment or of 
wiring used with such equipment.

[[Page 351]]

    (2) Extraordinary procedures. Section 68.215(g)(3) is hereby limited 
to allow for inspection of exposed wiring and connection and splicing 
points, but not for requiring the withdrawal of wiring from wiring run 
concealed in ducts, conduit or wall spaces unless actual harm has 
occurred, or a failure of acceptance testing has not been corrected 
within a reasonable time. In addition, Sec. 68.215(g)(4) is hereby 
waived.

[43 FR 16499, Apr. 19, 1978, as amended at 44 FR 7958, Feb. 8, 1979; 47 
FR 37896, Aug. 27, 1982; 49 FR 21735, May 23, 1984; 58 FR 44907, Aug. 
25, 1993; 66 FR 7584, Jan. 24, 2001]



Sec. 68.218  Responsibility of the party acquiring equipment authorization.

    (a) In acquiring approval for terminal equipment to be connected to 
the public switched telephone network, the responsible party warrants 
that each unit of equipment marketed under such authorization will 
comply with all applicable rules and regulations of this part and with 
the applicable technical criteria of the Administrative Council for 
Terminal Attachments.
    (b) The responsible party or its agent shall provide the user of the 
approved terminal equipment the following:
    (1) Consumer instructions required to be included with approved 
terminal equipment by the Administrative Council for Terminal 
Attachments;
    (2) For a telephone that is not hearing aid-compatible, as defined 
in Sec. 68.316 of these rules:
    (i) Notice that FCC rules prohibit the use of that handset in 
certain locations; and
    (ii) A list of such locations (see Sec. 68.112).
    (c) When approval is revoked for any item of equipment, the 
responsible party must take all reasonable steps to ensure that 
purchasers and users of such equipment are notified to discontinue use 
of such equipment.

[66 FR 7585, Jan. 24, 2001]



Sec. 68.224  Notice of non-hearing aid compatibility.

    Every non-hearing aid compatible telephone offered for sale to the 
public on or after August 17, 1989, whether previously-registered, newly 
registered or refurbished shall:
    (a) Contain in a conspicuous location on the surface of its 
packaging a statement that the telephone is not hearing aid compatible, 
as is defined in Secs. 68.4(a)(3) and 68.316, or if offered for sale 
without a surrounding package, shall be affixed with a written statement 
that the telephone is not hearing aid-compatible, as defined in 
Secs. 68.4(a)(3) and 68.316; and
    (b) Be accompanied by instructions in accordance with 
Sec. 68.218(b)(5) of the rules.

[54 FR 21431, May 18, 1989, as amended at 61 FR 42187, Aug. 14, 1996]



          Subpart D--Conditions for Terminal Equipment Approval

    Authority: Secs. 4, 5, 303, 48 Stat., as amended, 1066, 1068, 1082 
(47 U.S.C. 154, 155, 303).

    Source: 45 FR 20853, Mar. 31, 1980, unless otherwise noted.



Sec. 68.300  Labeling requirements.

    (a) Terminal equipment approved as set out in this part must be 
labeled in accordance with the requirements published by the 
Administrative Council for Terminal Attachments and with requirements of 
this part for hearing aid compatibility and volume control.
    (b) As of April 1, 1997, all registered telephones, including 
cordless telephones, as defined in Sec. 15.3(j) of this chapter, 
manufactured in the United States (other than for export) or imported 
for use in the United States, that are hearing aid compatible, as 
defined in Sec. 68.316, shall have the letters ``HAC'' permanently 
affixed thereto. ``Permanently affixed'' shall be defined as in 
paragraph (b)(5) of this section. Telephones used with public mobile 
services or private radio services, and secure telephones, as defined by 
Sec. 68.3, are exempt from this requirement.

[62 FR 61664, Nov. 19, 1997, as amended at 64 FR 3048, Jan. 20, 1999; 66 
FR 7585, Jan. 24, 2001]



Sec. 68.316  Hearing aid compatibility: Technical requirements.

    A telephone handset is hearing aid compatible for the purposes of 
this section if it complies with the following

[[Page 352]]

standard, published by the Telecommunications Industry Association, 
copyright 1983, and reproduced by permission of the Telecommunications 
Industry Association:

 Electronic Industries Association Recommended Standard RS-504 Magnetic 
 Field Intensity Criteria for Telephone Compatibility With Hearing Aids

[Prepared by EIA Engineering Committee TR-41 and the Hearing Industries 
            Association's Standards and Technical Committee]

                            Table of Contents

                          List of Illustrations

1  INTRODUCTION
2  SCOPE
3  DEFINITIONS
4  TECHNICAL REQUIREMENTS
4.1  General
4.2  Axial Field Intensity
4.3  Radial Field Intensity
4.4  Induced Voltage Frequency Response

Appendix A--Bibliography

                          List of Illustrations

                              Figure Number

1  Reference and Measurement Planes and Axes
2  Measurement Block Diagram
3  Probe Coil Parameters
4A  Induced Voltage Frequency Response for receivers with an axial field 
          that exceeds -19 dB
4B  Induced Voltage Frequency Response for receivers with an axial field 
          that exceeds -22 dB but is less than -19 dB

   Magnetic Field Intensity Criteria for Telephone Compatibility With 
                              Hearing Aids

    (From EIA Standards Proposal No. 1652, formulated under the 
cognizance of EIA TR-41 Committee on Voice Telephone Terminals and the 
Hearing Industries Association's Standards and Technical Committee.)

                             1 Introduction

    Hearing-aid users have used magnetic coupling to enable them to 
participate in telephone communications since the 1940's. Magnetic pick-
ups in hearing-aids have provided for coupling to many, but not all, 
types of telephone handsets. A major reason for incompatibility has been 
the lack of handset magnetic field intensity requirements. Typically, 
whatever field existed had been provided fortuitously rather than by 
design. More recently, special handset designs, e.g., blue grommet 
handsets associated with public telephones, have been introduced to 
provide hearing-aid coupling and trials were conducted to demonstrate 
the acceptability of such designs. It is anticipated that there will be 
an increase in the number of new handset designs in the future. A 
standard definition of the magnetic field intensity emanating from 
telephone handsets intended to provide hearing-aid coupling is needed so 
that hearing-aid manufacturers can design their product to use this 
field, which will be guaranteed in handsets which comply with this 
standard.
    1.1 This standard is one of a series of technical standards on voice 
telephone terminal equipment prepared by EIA Engineering Committee TR-
41. This document, with its companion standards on Private Branch 
Exchanges (PBX), Key Telephone Systems (KTS), Telephones and 
Environmental and Safety Considerations (Refs: A1, A2, A3 and A4) fills 
a recognized need in the telephone industry brought about by the 
increasing use in the public telephone network of equipment supplied by 
numerous manufacturers. It will be useful to anyone engaged in the 
manufacture of telephone terminal equipment and hearing-aids and to 
those purchasing, operating or using such equipment or devices.
    1.2 This standard is intended to be a living document, subject to 
revision and updating as warranted by advances in network and terminal 
equipment technology and changes in the FCC Rules and Regulations.

                                2  Scope

    2.1  The purpose of this document is to establish formal criteria 
defining the magnetic field intensity presented by a telephone to which 
hearing aids can couple. The requirements are based on present 
telecommunications plant characteristics at the telephone interface. The 
telephone will also be subject to the applicable requirements of EIA RS-
470, Telephone Instruments with Loop Signaling for Voiceband 
Applications (Ref: A3) and the environmental requirements specified in 
EIA Standards Project PN-1361, Environmental and Safety Considerations 
for Voice Telephone Terminals, when published (Ref: A4).
    Telephones which meet these requirements should ensure satisfactory 
service to users of magnetically coupled hearing-aids in a high 
percentage of installations, both initially and over some period of 
time, as the network grows and changes occur in telephone serving 
equipment. However, due to the wide range of customer apparatus and loop 
plant and dependent on the environment in which the telephone and 
hearing aid are used, conformance with this standard does not guarantee 
acceptable performance or interface compatibility under all possible 
operating conditions.
    2.2  A telephone complies with this standard if it meets the 
requirements in this

[[Page 353]]

standard when manufactured and can be expected to continue to meet these 
requirements when properly used and maintained. For satisfactory service 
a telephone needs to be capable, through the proper selection of 
equipment options, of satisfying the requirements applicable to its 
marketing area.
    2.3  The standard is intended to be in conformance with part 68 of 
the FCC Rules and Regulations, but it is not limited to the scope of 
those rules (Ref: A5).
    2.4  The signal level and method of measurement in this standard 
have been chosen to ensure reproducible results and permit comparison of 
evaluations. The measured magnetic field intensity will be approximately 
15 dB above the average level encountered in the field and the measured 
high-end frequency response will be greater than that encountered in the 
field.
    2.5  The basic accuracy and reproducibility of measurements made in 
accordance with this standard will depend primarily upon the accuracy of 
the test equipment used, the care with which the measurements are 
conducted, and the inherent stability of the devices under test.

                             3  Definitions

    This section contains definitions of terms needed for proper 
understanding and application of this standard which are not believed to 
be adequately treated elsewhere. A glossary of telephone terminology, 
which will be published as a companion volume to the series of technical 
standards on Telephone Terminals For Voiceband Applications, is 
recommended as a general reference and for definitions not covered in 
this section.
    3.1  A telephone is a terminal instrument which permits two-way, 
real-time voice communication with a distant party over a network or 
customer premises connection. It converts real-time voice and voiceband 
acoustic signals into electrical signals suitable for transmission over 
the telephone network and converts received electrical signals into 
acoustic signals. A telephone which meets the requirements of this 
standard also generates a magnetic field to which hearing-aids may 
couple.
    3.2  The telephone boundaries are the electrical interface with the 
network, PBX or KTS and the acoustic, magnetic and mechanical interfaces 
with the user. The telephone may also have an electrical interface with 
commercial power.
    3.3  A hearing aid is a personal electronic amplifying device, 
intended to increase the loudness of sound and worn to compensate for 
impaired hearing. When equipped with an optional inductive pick-up coil 
(commonly called a telecoil), a hearing aid can be used to amplify 
magnetic fields such as those from telephone receivers or induction-loop 
systems.
    3.4  The reference plane is the planar area containing points of the 
receiver-end of the handset which, in normal handset use, rest against 
the ear (see Fig 1).
    3.5  The measurement plane is parallel to, and 10 mm in front of, 
the reference plane (see Fig 1).
    3.6  The reference axis is normal to the reference plane and passes 
through the center of the receiver cap (or the center of the hole array, 
for handset types that do not have receiver caps).
    3.7  The measurement axis is parallel to the reference axis but may 
be displaced from that axis, by a maximum of 10 mm (see Fig 1). Within 
this constraint, the measurement axis may be located where the axial and 
radial field intensity measurements, are optimum with regard to the 
requirements. In a handset with a centered receiver and a circularly 
symmetrical magnetic field, the measurement axis and the reference axis 
would coincide.

[[Page 354]]

[GRAPHIC] [TIFF OMITTED] TC02JN91.027

                        4  Technical Requirements

    4.1  General.
    These criteria apply to handsets when tested as a constituent part 
of a telephone.
    4.1.1  Three parameters descriptive of the magnetic field at points 
in the measurement plane shall be used to ascertain adequacy for 
magnetic coupling. These three parameters are intensity, direction and 
frequency response, associated with the field vector.
    4.1.2  The procedures for determining the parameter values are 
defined in the IEEE Standard Method For Measuring The Magnetic Field 
Intensity Around A Telephone Receiver (Ref: A6), with the exception that 
this EIA Recommended Standard does not require that the measurements be 
made using an equivalent loop of 2.75 km of No. 26 AWG cable, but uses a 
1250-ohm resistor in series with the battery feed instead (see Fig 2).
    4.1.3  When testing other than general purpose analog telephones, 
e.g., proprietary or digital telephones, an appropriate feed circuit and 
termination shall be used that produces equivalent test conditions.
    4.2  Axial Field Intensity.
    When measured as specified in 4.1.2, the axial component of the 
magnetic field directed along the measurement axis and located at the 
measurement plane, shall be greater than -22 dB relative to 1 A/m, for 
an input of -10 dBV at 1000 Hz (see Fig 2).

    Note: If the magnitude of the axial component exceeds -19 dB 
relative to 1 A/m, some relaxation in the frequency response is 
permitted (See 4.4.1).

    4.3  Radial Field Intensity.
    When measured as specified in 4.1.2, radial components of the 
magnetic field as measured at four points 90 deg. apart, and at a 
distance [ge]16 mm from the measurement axis (as selected in 4.2), shall 
be greater than -27 dB relative to 1 A/m, for an input of -10 dBV at 
1000 Hz (see Fig 2).
    4.4  Induced Voltage Frequency Response.
    The frequency response of the voltage induced in the probe coil by 
the axial component of the magnetic field as measured in 4.2, shall fall 
within the acceptable region of Fig 4A or Fig 4B (see 4.4.1 and 4.4.2), 
over the frequency range 300-to-3300 Hz.
    4.4.1  For receivers with an axial component which exceeds -19 dB 
relative to 1 A/m, when measured as specified in 4.1.2, the frequency 
response shall fall within the acceptable region of Fig 4A.
    4.4.2  For receivers with an axial component which is less than -19 
dB but greater than -22 dB relative to 1 A/m, when measured as specified 
in 4.1.2, the frequency response shall fall within the acceptable region 
of Fig 4B.

[[Page 355]]

[GRAPHIC] [TIFF OMITTED] TC02JN91.028


[[Page 356]]


[GRAPHIC] [TIFF OMITTED] TC02JN91.029


[[Page 357]]


[GRAPHIC] [TIFF OMITTED] TC02JN91.030


[[Page 358]]


[GRAPHIC] [TIFF OMITTED] TC02JN91.031


[[Page 359]]



                        Appendix A--Bibliography

    (A1) EIA Standard RS-464, Private Branch Exchange (PBX) Switching 
Equipment for Voiceband Applications.
    (A2) EIA Standard RS-478, Multi-Line Key Telephone Systems (KTS) for 
Voiceband Applications.
    (A3) EIA Standard RS-470, Telephone Instruments with Loop Signaling 
for Voiceband Applications.
    (A4) EIA Project Number PN-1361, Environmental and Safety 
Considerations for Voice Telephone Terminals.
    (A5) Federal Communications Commission Rules and Regulations, part 
68, Connection of Terminal Equipment to the Telephone Network.
    (A6) IEEE Standard, Method for Measuring the Magnetic Field arould a 
Telephone Receiver. (to be published)

[49 FR 1363, Jan. 11, 1984, as amended at 61 FR 42187, Aug. 14, 1996]



Sec. 68.317  Hearing aid compatibility volume control: technical standards.

    (a) An analog telephone complies with the Commission's volume 
control requirements if the telephone is equipped with a receive volume 
control that provides, through the receiver in the handset or headset of 
the telephone, 12 dB of gain minimum and up to 18 dB of gain maximum, 
when measured in terms of Receive Objective Loudness Rating (ROLR), as 
defined in paragraph 4.1.2 of ANSI/EIA-470-A-1987 (Telephone Instruments 
With Loop Signaling) . The 12 dB of gain minimum must be achieved 
without significant clipping of the test signal. The telephone also 
shall comply with the upper and lower limits for ROLR given in table 4.4 
of ANSI/EIA-470-A-1987 when the receive volume control is set to its 
normal unamplified level.

    Note to paragraph (a):
    Paragraph 4.1.2 of ANSI/EIA-470-A-1987 identifies several 
characteristics related to the receive response of a telephone. It is 
only the normal unamplified ROLR level and the change in ROLR as a 
function of the volume control setting that are relevant to the 
specification of volume control as required by this section.

    (b) The ROLR of an analog telephone shall be determined over the 
frequency range from 300 to 3300 HZ for short, average, and long loop 
conditions represented by 0, 2.7, and 4.6 km of 26 AWG nonloaded cable, 
respectively. The specified length of cable will be simulated by a 
complex impedance. (See Figure A.) The input level to the cable 
simulator shall be -10 dB with respect to 1 V open circuit from a 900 
ohm source.
    (c) A digital telephone complies with the Commission's volume 
control requirements if the telephone is equipped with a receive volume 
control that provides, through the receiver of the handset or headset of 
the telephone, 12 dB of gain minimum and up to 18 dB of gain maximum, 
when measured in terms of Receive Objective Loudness Rating (ROLR), as 
defined in paragraph 4.3.2 of ANSI/EIA/TIA-579-1991 (Acoustic-To-Digital 
and Digital-To-Acoustic Transmission Requirements for ISDN Terminals). 
The 12 dB of gain minimum must be achieved without significant clipping 
of the test signal. The telephone also shall comply with the limits on 
the range for ROLR given in paragraph 4.3.2.2 of ANSI/EIA/TIA-579-1991 
when the receive volume control is set to its normal unamplified level.
    (d) The ROLR of a digital telephone shall be determined over the 
frequency range from 300 to 3300 Hz using the method described in 
paragraph 4.3.2.1 of ANSI/EIA/TIA-579-1991. No variation in loop 
conditions is required for this measurement since the receive level of a 
digital telephone is independent of loop length.
    (e) The ROLR for either an analog or digital telephone shall first 
be determined with the receive volume control at its normal unamplified 
level. The minimum volume control setting shall be used for this 
measurement unless the manufacturer identifies a different setting for 
the nominal volume level. The ROLR shall then be determined with the 
receive volume control at its maximum volume setting. Since ROLR is a 
loudness rating value expressed in dB of loss, more positive values of 
ROLR represent lower receive levels. Therefore, the ROLR value 
determined for the maximum volume control setting should be subtracted 
from that determined for the nominal volume control setting to determine 
compliance with the gain requirement.
    (f) The 18 dB of receive gain may be exceeded provided that the 
amplified receive capability automatically resets to nominal gain when 
the telephone is

[[Page 360]]

caused to pass through a proper on-hook transition in order to minimize 
the likelihood of damage to individuals with normal hearing.
    (g) These incorporations by reference of paragraph 4.1.2 (including 
table 4.4) of American National Standards Institute (ANSI) Standard 
ANSI/EIA-470-A-1987 and paragraph 4.3.2 of ANSI/EIA/TIA-579-1991 were 
approved by the Director of the Federal Register in accordance with 5 
U.S.C. 552(a) and 1 CFR part 51. Copies of these publications may be 
purchased from the American National Standards Institute (ANSI), Sales 
Department, 11 West 42nd Street, 13th Floor, New York, NY 10036, (212) 
642-4900. Copies also may be inspected during normal business hours at 
the following locations: Consumer and Governmental Affairs Bureau, 
Reference Information Center, Federal Communications Commission, 445 
12th Street, SW, Washington, DC 20554; and Office of the Federal 
Register, 800 N. Capitol Street, NW., Suite 700, Washington, DC.

[61 FR 42187, Aug. 14, 1996, as amended at 64 FR 60726, Nov. 8, 1999; 67 
FR 13229, Mar. 21, 2002]



Sec. 68.318  Additional limitations.

    (a) General. Registered terminal equipment for connection to those 
services discussed below must incorporate the specified features.
    (b) Registered terminal equipment with automatic dialing capability. 
(1) Automatic dialing to any individual number is limited to two 
successive attempts. Automatic dialing equipment which employ means for 
detecting both busy and reorder signals shall be permitted an additional 
13 attempts if a busy or reorder signal is encountered on each attempt. 
The dialer shall be unable to re-attempt a call to the same number for 
at least 60 minutes following either the second or fifteenth successive 
attempt, whichever applies, unless the dialer is reactivated by either 
manual or external means. This rule does not apply to manually activated 
dialers that dial a number once following each activation.

    Note to paragraph (b)(1):
    Emergency alarm dialers and dialers under external computer control 
are exempt from these requirements.

    (2) If means are employed for detecting both busy and reorder 
signals, the automatic dialing equipment shall return to its on-hook 
state within 15 seconds after detection of a busy or reorder signal.
    (3) If the called party does not answer, the automatic dialer shall 
return to the on-hook state within 60 seconds of completion of dialing.
    (4) If the called party answers, and the calling equipment does not 
detect a compatible terminal equipment at the called end, then the 
automatic dialing equipment shall be limited to one additional call 
which is answered. The automatic dialing equipment shall comply with 
paragraphs (b)(1), (b)(2), and (b)(3) of this section for additional 
call attempts that are not answered.
    (5) Sequential dialers shall dial only once to any individual number 
before proceeding to dial another number.
    (6) Network addressing signals shall be transmitted no earlier than:
    (i) 70 ms after receipt of dial tone at the network demarcation 
point; or
    (ii) 600 ms after automatically going off-hook (for single line 
equipment that does not use dial tone detectors); or
    (iii) 70 ms after receipt of CO ground start at the network 
demarcation point.
    (c) Line seizure by automatic telephone dialing systems. Automatic 
telephone dialing systems which deliver a recorded message to the called 
party must release the called party's telephone line within 5 seconds of 
the time notification is transmitted to the system that the called party 
has hung up, to allow the called party's line to be used to make or 
receive other calls.
    (d) Telephone facsimile machines; Identification of the sender of 
the message. It shall be unlawful for any person within the United 
States to use a computer or other electronic device to send any message 
via a telephone facsimile machine unless such message clearly contains, 
in a margin at the top or bottom of each transmitted page or on the 
first page of the transmission, the date and time it is sent and an 
identification of the business, other entity, or individual sending the 
message and the telephone number of the sending machine or of such 
business, other entity,

[[Page 361]]

or individual. Telephone facsimile machines manufactured on and after 
December 20, 1992, must clearly mark such identifying information on 
each transmitted message.
    (e) Requirement that registered equipment allow access to common 
carriers. Any equipment or software manufactured or imported on or after 
April 17, 1992, and installed by any aggregator shall be technologically 
capable of providing consumers with access to interstate providers of 
operator services through the use of equal access codes. The terms used 
in this paragraph shall have meanings defined in Sec. 64.708 of this 
chapter (47 CFR 64.708).

[62 FR 61691, Nov. 19, 1997]



Sec. 68.320  Supplier's Declaration of Conformity.

    (a) Supplier's Declaration of Conformity is a procedure where the 
responsible party, as defined in Sec. 68.3, makes measurements or takes 
other necessary steps to ensure that the terminal equipment complies 
with the appropriate technical standards.
    (b) The Supplier's Declaration of Conformity attaches to all items 
subsequently marketed by the responsible party which are identical, 
within the variation that can be expected to arise as a result of 
quantity production techniques, to the sample tested and found 
acceptable by the responsible party.
    (c) The Supplier's Declaration of Conformity signifies that the 
responsible party has determined that the equipment has been shown to 
comply with the applicable technical criteria if no unauthorized change 
is made in the equipment and if the equipment is properly maintained and 
operated.
    (d) The responsible party, if different from the manufacturer, may 
upon receiving a written statement from the manufacturer that the 
equipment complies with the appropriate technical criteria, rely on the 
manufacturer or independent testing agency to determine compliance. Any 
records that the Administrative Council for Terminal Attachments 
requires the responsible party to maintain shall be in the English 
language and shall be made available to the Commission upon a request.
    (e) No person shall use or make reference to a Supplier's 
Declaration of Conformity in a deceptive or misleading manner or to 
convey the impression that such a Supplier's Declaration of Conformity 
reflects more than a determination by the responsible party that the 
device or product has been shown to be capable of complying with the 
applicable technical criteria published by the Administrative Council of 
Terminal Attachments.

[66 FR 7585, Jan. 24, 2001]



Sec. 68.321  Location of responsible party.

    The responsible party for a Supplier's Declaration of Conformity 
must be located within the United States.

[66 FR 7585, Jan. 24, 2001]

    Effective Date Note: At 67 FR 57182, Sept. 9, 2002, Sec. 68.321 was 
revised, effective Oct. 9, 2002. For the convenience of the user, the 
revised text is set forth as follows:

Sec. 68.321  Location of responsible party.

    The responsible party for a Supplier's Declaration of Conformity 
must designate an agent for service of process that is physically 
located within the United States.



Sec. 68.322  Changes in name, address, ownership or control of responsible party.

    (a) The responsible party for a Supplier's Declaration of Conformity 
may license or otherwise authorize a second party to manufacture the 
equipment covered by the Supplier's Declaration of Conformity provided 
that the responsible party shall continue to be responsible to the 
Commission for ensuring that the equipment produced pursuant to such an 
agreement remains compliant with the appropriate standards.
    (b) In the case of transactions affecting the responsible party of a 
Supplier's Declaration of Conformity, such as a transfer of control or 
sale to another company, mergers, or transfer of manufacturing rights, 
the successor entity shall become the responsible party.

[66 FR 7586, Jan. 24, 2001]

[[Page 362]]



Sec. 68.324  Supplier's Declaration of Conformity requirements.

    (a) Each responsible party shall include in the Supplier's 
Declaration of Conformity, the following information:
    (1) The identification and a description of the responsible party 
for the Supplier's Declaration of Conformity and the product, including 
the model number of the product,
    (2) A statement that the terminal equipment conforms with applicable 
technical requirements, and a reference to the technical requirements,
    (3) The date and place of issue of the declaration,
    (4) The signature, name and function of person making declaration,
    (5) A statement that the handset, if any, complies with Sec. 68.316 
of these rules (defining hearing aid compatibility), or that it does not 
comply with that section. A telephone handset which complies with 
Sec. 68.316 shall be deemed a ``hearing aid-compatible telephone'' for 
purposes of Sec. 68.4.
    (6) Any other information required to be included in the Supplier's 
Declaration of Conformity by the Administrative Council of Terminal 
Attachments.
    (b) If the device that is subject to a Supplier's Declaration of 
Conformity is designed to operate in conjunction with other equipment, 
the characteristics of which can affect compliance of such device with 
part 68 rules and/or with technical criteria published by the 
Administrative Council for Terminal Attachments, then the Model 
Number(s) of such other equipment must be supplied, and such other 
equipment must also include a Supplier's Declaration of Conformity or a 
certification from a Telecommunications Certification Body.
    (c) The Supplier's Declaration of Conformity shall be included in 
the user's manual or as a separate document enclosed with the terminal 
equipment.
    (d) If terminal equipment is not subject to a Supplier's Declaration 
of Conformity, but instead contains protective circuitry that is subject 
to a Supplier's Declaration of Conformity, then the responsible party 
for the protective circuitry shall include with each module of such 
circuitry, a Supplier's Declaration of Conformity containing the 
information required under Sec. 68.340(a), and the responsible party of 
such terminal equipment shall include such statement with each unit of 
the product.
    (e) (1) The responsible party for the terminal equipment subject to 
a Supplier's Declaration of Conformity also shall provide to the 
purchaser of such terminal equipment, instructions as required by the 
Administrative Council for Terminal Attachments.
    (2) A copy of the Supplier's Declaration of Conformity shall be 
provided to the Administrative Council for Terminal Attachments along 
with any other information the Administrative Council for Terminal 
Attachments requires; this information shall be made available to the 
public.
    (3) The responsible party shall make a copy of the Supplier's 
Declaration of Conformity freely available to the general public on its 
company website. The information shall be accessible to the disabled 
community from the website. If the responsible party does not have a 
functional and reliable website, then the responsible party shall inform 
the Administrative Council for Terminal Attachments of such 
circumstances, and the Administrative Council for Terminal Attachments 
shall make a copy available on its website.
    (f) For a telephone that is not hearing aid-compatible, as defined 
in Sec. 68.316 of this part, the responsible party also shall provide 
the following in the Supplier's Declaration of Conformity:
    (1) Notice that FCC rules prohibit the use of that handset in 
certain locations; and
    (2) A list of such locations (see Sec. 68.112).

[66 FR 7586, Jan. 24, 2001]



Sec. 68.326  Retention of records.

    (a) The responsible party for a Supplier's Declaration of Conformity 
shall maintain records containing the following information:
    (1) A copy of the Supplier's Declaration of Conformity;
    (2) The identity of the testing facility, including the name, 
address, phone number and other contact information.

[[Page 363]]

    (3) A detailed explanation of the testing procedure utilized to 
determine whether terminal equipment conforms to the appropriate 
technical criteria.
    (4) A copy of the test results for terminal equipment compliance 
with the appropriate technical criteria.
    (b) For each device subject to the Supplier's Declaration of 
Conformity requirement, the responsible party shall maintain all records 
required under Sec. 68.326(a) for at least ten years after the 
manufacture of said equipment has been permanently discontinued, or 
until the conclusion of an investigation or a proceeding, if the 
responsible party is officially notified prior to the expiration of such 
ten year period that an investigation or any other administrative 
proceeding involving its equipment has been instituted, whichever is 
later.

[66 FR 7586, Jan. 24, 2001]



Sec. 68.346  Description of testing facilities.

    (a) Each responsible party for equipment that is subject to a 
Supplier's Declaration of Conformity under this part, shall compile a 
description of the measurement facilities employed for testing the 
equipment. The responsible party for the Supplier's Declaration of 
Conformity shall retain a description of the measurement facilities.
    (b) The description shall contain the information required to be 
included by the Administrative Council for Terminal Attachments.

[66 FR 7586, Jan. 24, 2001]



Sec. 68.348  Changes in equipment and circuitry subject to a Supplier's Declaration of Conformity.

    (a) No change shall be made in terminal equipment or protective 
circuitry that would result in any material change in the information 
contained in the Supplier's Declaration of Conformity Statement 
furnished to users.
    (b) Any other changes in terminal equipment or protective circuitry 
which is subject to an effective Supplier's Declaration of Conformity 
shall be made only by the responsible party or an authorized agent 
thereof, and the responsible party will remain responsible for the 
performance of such changes.

[66 FR 7586, Jan. 24, 2001]



Sec. 68.350  Revocation of Supplier's Declaration of Conformity.

    (a) The Commission may revoke any Supplier's Declaration of 
Conformity for cause in accordance with the provisions of this section 
or in the event changes in technical standards published by the 
Administrative Council for Terminal Attachments require the revocation 
of any outstanding Supplier's Declaration of Conformity in order to 
achieve the objectives of part 68.
    (b) Cause for revocation. In addition to the provisions in 
Sec. 68.211, the Commission may revoke a Supplier's Declaration of 
Conformity:
    (1) For false statements or representations made in materials or 
responses submitted to the Commission and/or the Administrative Council 
for Terminal Attachments, or in records required to be kept by 
Sec. 68.324 and the Administrative Council for Terminal Attachments.
    (2) If upon subsequent inspection or operation it is determined that 
the equipment does not conform to the pertinent technical requirements.
    (3) If it is determined that changes have been made in the equipment 
other that those authorized by this part or otherwise expressly 
authorized by the Commission.

[66 FR 7587, Jan. 24, 2001]



Sec. 68.354  Numbering and labeling requirements for terminal equipment.

    (a) Terminal equipment and protective circuitry that is subject to a 
Supplier's Declaration of Conformity or that is certified by a 
Telecommunications Certification Body shall have labels in a place and 
manner required by the Administrative Council for Terminal Attachments.
    (b) Terminal equipment labels shall include an identification 
numbering system in a manner required by the Administrative Council for 
Terminal Attachments.

[[Page 364]]

    (c) If the Administrative Council for Terminal Attachments chooses 
to continue the practice of utilizing a designated ``FCC'' number, it 
shall include in its labeling requirements a warning that the Commission 
no longer directly approves or registers terminal equipment.
    (d) Labeling developed for terminal equipment by the Administrative 
Council for Terminal Attachments shall contain sufficient information 
for providers of wireline telecommunications, the Federal Communications 
Commission, and the U.S. Customs Service to carry out their functions, 
and for consumers to easily identify the responsible party and the 
manufacturer of their terminal equipment. The numbering and labeling 
scheme shall be nondiscriminatory, creating no competitive advantage for 
any entity or segment of the industry.
    (e) FCC numbering and labeling requirements existing prior to the 
effective date of these rules shall remain unchanged until the 
Administrative Council for Terminal Attachments publishes its numbering 
and labeling requirements.

[66 FR 7587, Jan. 24, 2001]

    Effective Date Note: At 67 FR 57182, Sept. 9, 2002, Sec. 68.354 was 
amended by revising paragraph (d), effective Oct. 9, 2002. For the 
convenience of the user, the revised text is set forth as follows:

Sec. 68.354  Numbering and labeling requirements for terminal equipment.

                                * * * * *

    (d) Labeling developed for terminal equipment by the Administrative 
Council on Terminal Attachments shall contain sufficient information for 
providers of wireline telecommunications, the Federal Communications 
Commission, and the U.S. Customs Service to carry out their functions, 
and for consumers to easily identify the responsible party of their 
terminal equipment. The numbering and labeling scheme shall be 
nondiscriminatory, creating no competitive advantage for any entity or 
segment of the industry.

                                * * * * *



                     Subpart E--Complaint Procedures



Sec. 68.400  Content.

    A complaint shall be in writing and shall contain:
    (a) The name and address of the complainant,
    (b) The name (and address, if known) of the defendant against whom 
the complaint is made,
    (c) A complete statement of the facts, including supporting data, 
where available, showing that such defendant did or omitted to do 
anything in contravention of part 68 of the Commission's Rules, and
    (d) The relief sought.



Sec. 68.402  Amended complaints.

    An amended complaint setting forth transactions, occurrences or 
events which have happened since the filing of the original complaint 
and which relate to the original cause of action may be filed with the 
Commission.



Sec. 68.404  Number of copies.

    An original and two copies of all complaints and amended complaints 
shall be filed. An original and one copy of all other pleadings shall be 
filed.



Sec. 68.406  Service.

    (a) The Commission will serve a copy of any complaint or amended 
complaint filed with it, together with a notice of the filing of the 
complaint. Such notice shall call upon the defendant to satisfy or 
answer the complaint in writing within the time specified in said notice 
of complaint.
    (b) All subsequent pleadings and briefs shall be served by the 
filing party on all other parties to the proceeding in accordance with 
the requirements of Sec. 1.47. Proof of such service shall also be made 
in accordance with the requirements of said section.



Sec. 68.408  Answers to complaints and amended complaints.

    Any party upon whom a copy of a complaint or amended complaint is 
served under this subpart shall serve an answer within the time 
specified by

[[Page 365]]

the Commission in its notice of complaint. The answer shall advise the 
parties and the Commission fully and completely of the nature of the 
defense, and shall respond specifically to all material allegations of 
the complaint. In cases involving allegations of harm, the answer shall 
indicate what action has been taken or is proposed to be taken to stop 
the occurrence of such harm, both in terms of future production and with 
reference to articles in the possession of distributors, sellers, and 
users. Collateral or immaterial issues shall be avoided in answers and 
every effort should be made to narrow the issues. Matters alleged as 
affirmative defenses shall be separately stated and numbered. Any 
defendant failing to file and serve an answer within the time and in the 
manner prescribed may be deemed in default.



Sec. 68.410  Replies to answers or amended answers.

    Within 10 days after service of an answer or an amended answer, a 
complainant may serve a reply which shall be responsive to matters 
contained in such answer or amended answer and shall not contain new 
matters. Failure to reply will not be deemed an admission of any 
allegation contained in such answer or amended answer.



Sec. 68.412  Defective pleadings.

    Any pleading filed in a complaint proceeding not in substantial 
conformity with the requirements of the applicable rules in this part 
may be dismissed.



Sec. 68.414  Hearing aid-compatibility: Enforcement.

    Enforcement of Secs. 68.4 and 68.112 is hereby delegated to those 
states which adopt those sections and provide for their enforcement. The 
procedures followed by a state to enforce those sections shall provide a 
30-day period after a complaint is filed, during which time state 
personnel shall attempt to resolve a dispute on an informal basis. If a 
state has not adopted or incorporated Secs. 68.4 and 68.112, or failed 
to act within 6 months from the filing of a complaint with the state 
public utility commission, the Commission will accept such compliants. A 
written notification to the complainant that the state believes action 
is unwarranted is not a failure to act.

[49 FR 1368, Jan. 11, 1984]



Sec. 68.415  Hearing aid-compatibility and volume control informal complaints.

    Persons with complaints under Secs. 68.4 and 68.112 that are not 
addressed by the states pursuant to Sec. 68.414, and all other 
complaints regarding rules in this part pertaining to hearing aid 
compatibility and volume control, may bring informal complaints as 
described in Sec. 68.416 through Sec. 68.420. All responsible parties of 
terminal equipment are subject to the informal complaint provisions 
specified in this section.

[66 FR 7587, Jan. 24, 2001]



Sec. 68.417  Informal complaints; form and content.

    (a) An informal complaint alleging a violation of hearing aid 
compatibility and/or volume control rules in this subpart may be 
transmitted to the Consumer Information Bureau by any reasonable means, 
e.g., letter, facsimile transmission, telephone (voice/TRS/TTY), 
Internet e-mail, ASCII text, audio-cassette recording, and Braille.
    (b) An informal complaint shall include:
    (1) The name and address of the complainant;
    (2) The name and address of the responsible party, if known, or the 
manufacturer or provider against whom the complaint is made;
    (3) A full description of the terminal equipment about which the 
complaint is made;
    (4) The date or dates on which the complainant purchased, acquired 
or used the terminal equipment about which the complaint is being made;
    (5) A complete statement of the facts, including documentation where 
available, supporting the complainant's allegation that the defendant 
has failed to comply with the requirements of this subpart;
    (6) The specific relief or satisfaction sought by the complainant, 
and

[[Page 366]]

    (7) The complainant's preferred format or method of response to the 
complaint by the Commission and defendant (e.g., letter, facsimile 
transmission, telephone (voice/TRS/TTY), Internet e-mail, ASCII text, 
audio-cassette recording, Braille; or some other method that will best 
accommodate the complainant's disability).

[66 FR 7587, Jan. 24, 2001]



Sec. 68.418  Procedure; designation of agents for service.

    (a) The Commission shall promptly forward any informal complaint 
meeting the requirements of Sec. 68.17 to each responsible party named 
in or determined by the staff to be implicated by the complaint. Such 
responsible party or parties shall be called on to satisfy or answer the 
complaint within the time specified by the Commission.
    (b) To ensure prompt and effective service of informal complaints 
filed under this subpart, every responsible party of equipment approved 
pursuant to this part shall designate and identify one or more agents 
upon whom service may be made of all notices, inquiries, orders, 
decisions, and other pronouncements of the Commission in any matter 
before the Commission. Such designation shall be provided to the 
Administrative Council for Terminal Attachment and shall include a name 
or department designation, business address, telephone number, and, if 
available TTY number, facsimile number, and Internet e-mail address. The 
Administrative Council shall make this information promptly available 
without charge to complainants upon request.

[66 FR 7587, Jan. 24, 2001]



Sec. 68.419  Answers to informal complaints.

    Any responsible party to whom the Commission or the Consumer 
Information Bureau under this subpart directs an informal complaint 
shall file an answer within the time specified by the Commission or the 
Consumer Information Bureau. The answer shall:
    (a) Be prepared or formatted in the manner requested by the 
complainant pursuant to Sec. 68.417, unless otherwise permitted by the 
Commission or the Consumer Information Bureau for good cause shown;
    (b) Describe any actions that the defendant has taken or proposes to 
take to satisfy the complaint;
    (c) Advise the complainant and the Commission or the Consumer 
Information Bureau of the nature of the defense(s) claimed by the 
defendant;
    (d) Respond specifically to all material allegations of the 
complaint; and
    (e) Provide any other information or materials specified by the 
Commission or the Consumer Information Bureau as relevant to its 
consideration of the complaint.

[66 FR 7587, Jan. 24, 2001]



Sec. 68.420  Review and disposition of informal complaints.

    (a) Where it appears from the defendant's answer, or from other 
communications with the parties, that an informal complaint has been 
satisfied, the Commission or the Consumer Information Bureau on 
delegated authority may, in its discretion, consider the informal 
complaint closed, without response to the complainant or defendant. In 
all other cases, the Commission or the Consumer Information Bureau shall 
inform the parties of its review and disposition of a complaint filed 
under this subpart. Where practicable, this information (the nature of 
which is specified in paragraphs (b) through (d) of this section, shall 
be transmitted to the complainant and defendant in the manner requested 
by the complainant, (e.g., letter, facsimile transmission, telephone 
(voice/TRS/TTY), Internet e-mail, ASCII text, audio-cassette recording, 
or Braille).
    (b) In the event the Commission or the Consumer and Governmental 
Affairs Bureau determines, based on a review of the information provided 
in the informal complaint and the defendant's answer thereto, that no 
further action is required by the Commission or the Consumer and 
Governmental Affairs Bureau with respect to the allegations contained in 
the informal complaint, the informal complaint shall be closed and the 
complainant and defendant shall be duly informed of the reasons 
therefor. A complainant, unsatisfied with the defendant's response to 
the informal complaint and the staff decision

[[Page 367]]

to terminate action on the informal complaint, may file a complaint with 
the Commission or the Enforcement Bureau as specified in Secs. 68.400 
through 68.412.
    (c) In the event the Commission or the Consumer Information Bureau 
on delegated authority determines, based on a review of the information 
presented in the informal complaint and the defendant's answer thereto, 
that a material and substantial question remains as to the defendant's 
compliance with the requirements of this subpart, the Commission or the 
Consumer Information Bureau may conduct such further investigation or 
such further proceedings as may be necessary to determine the 
defendant's compliance with the requirements of this subpart and to 
determine what, if any, remedial actions and/or sanctions are warranted.
    (d) In the event that the Commission or the Consumer Information 
Bureau on delegated authority determines, based on a review of the 
information presented in the informal complaint and the defendant's 
answer thereto, that the defendant has failed to comply with or is 
presently not in compliance with the requirements of this subpart, the 
Commission or the Consumer Information Bureau on delegated authority may 
order or prescribe such remedial actions and/or sanctions as are 
authorized under the Act and the Commission's rules and which are deemed 
by the Commission or the Consumer Information Bureau on delegated 
authority to be appropriate under the facts and circumstances of the 
case.

[66 FR 7588, Jan. 24, 2001, as amended at 67 FR 13229, Mar. 21, 2002]



Sec. 68.423  Actions by the Commission on its own motion.

    The Commission may on its own motion conduct such inquiries and hold 
such proceedings as it may deem necessary to enforce the requirements of 
this subpart. The procedures to be followed by the Commission shall, 
unless specifically prescribed in the Act and the Commission's rules, be 
such as in the opinion of the Commission will best serve the purposes of 
such inquiries and proceedings.

[66 FR 7588, Jan. 24, 2001]

Subpart F [Reserved]



       Subpart G--Administrative Council for Terminal Attachments

    Source: 66 FR 7588, Jan. 24, 2001, unless otherwise noted.



Sec. 68.602  Sponsor of the Administrative Council for Terminal Attachments.

    (a) The Telecommunications Industry Association (TIA) and the 
Alliance for Telecommunications Industry Solutions (ATIS) jointly shall 
establish the Administrative Council for Terminal Attachment and shall 
sponsor the Administrative Council for Terminal Attachments for four 
years from the effective date of these rules. The division of duties by 
which this responsibility is executed may be a matter of agreement 
between these two parties; however, both are jointly and severally 
responsible for observing these rule provisions. After four years from 
the effective date of these rules, and thereafter on a quadrennial 
basis, the Administrative Council for Terminal Attachments may vote by 
simple majority to be sponsored by any ANSI-accredited organization.
    (b) The sponsoring organizations shall ensure that the 
Administrative Council for Terminal Attachments is populated in a manner 
consistent with the criteria of American National Standards Institute's 
Organization Method or the Standards Committee Method (and their 
successor Method or Methods as ANSI may from time to time establish) for 
a balanced and open membership.
    (c) After the Administrative Council for Terminal Attachments is 
populated, the sponsors are responsible for fulfilling secretariat 
functions as determined by the Administrative Council for Terminal 
Attachments. The Administrative Council for Terminal Attachments shall 
post on a publicly available website and make available to the public in 
hard copy form the contract into which it enters with the sponsor or 
sponsors.

    Effective Date Note: At 67 FR 57182, Sept. 9, 2002, Sec. 68.602 was 
amended by revising paragraph (c), effective Oct. 9, 2002. For the 
convenience of the user, the revised text is set forth as follows:

[[Page 368]]

Sec. 68.602  Sponsor of the Administrative Council for Terminal 
          Attachments.

                                * * * * *

    (c) After the Administrative Council for Terminal Attachments is 
populated, the sponsors are responsible for fulfilling secretariat 
positions as determined by the Administrative Council for Terminal 
Attachments. The Administrative Council shall post on a publicly 
available web site and make available to the public in hard copy form 
the written agreement into which it enters with the sponsor or sponsors.



Sec. 68.604  Requirements for submitting technical criteria.

    (a) Any standards development organization that is accredited under 
the American National Standards Institute's Organization Method or the 
Standards Committee Method (and their successor Method or Methods as 
ANSI may from time to time establish) may establish technical criteria 
for terminal equipment pursuant to ANSI consensus decision-making 
procedures, and it may submit such criteria to the Administrative 
Council for Terminal Attachments.
    (b) Any ANSI-accredited standards development organization that 
develops standards for submission to the Administrative Council for 
Terminal Attachments must implement and use procedures for the 
development of those standards that ensure openness equivalent to the 
Commission rulemaking process.
    (c) Any standards development organization that submits standards to 
the Administrative Council for Terminal Attachments for publication as 
technical criteria shall certify to the Administrative Council for 
Terminal Attachments that:
    (1) The submitting standards development organization is ANSI-
accredited to the Standards Committee Method or the Organization Method 
(or their successor Methods as amended from time to time by ANSI);
    (2) The technical criteria that it proposes for publication do not 
conflict with any published technical criteria or with any technical 
criteria submitted and pending for publication, and
    (3) The technical criteria that it proposes for publication are 
limited to preventing harms to the public switched telephone network, 
identified in Sec. 68.3 of this part.



Sec. 68.608  Publication of technical criteria.

    The Administrative Council for Terminal Attachments shall place 
technical criteria proposed for publication on public notice for 30 
days. At the end of the 30 day public notice period, if there are no 
oppositions, the Administrative Council for Terminal Attachments shall 
publish the technical criteria.



Sec. 68.610  Database of terminal equipment.

    (a) The Administrative Council for Terminal Attachments shall 
operate and maintain a database of all approved terminal equipment. The 
database shall meet the requirements of the Federal Communications 
Commission and the U.S. Customs Service for enforcement purposes. The 
database shall be accessible by government agencies free of charge. 
Information in the database shall be readily available and accessible to 
the public, including individuals with disabilities, at nominal or no 
costs.
    (b) Responsible parties, whether they obtain their approval from a 
Telecommunications Certification Body or utilize the Supplier's 
Declaration of Conformity process, shall submit to the database 
administrator all information required by the Administrative Council for 
Terminal Attachments.
    (c) The Administrative Council for Terminal Attachments shall ensure 
that the database is created and maintained in an equitable and 
nondiscriminatory manner. The manner in which the database is created 
and maintained shall not permit any entity or segment of the industry to 
gain a competitive advantage.
    (d) The Administrative Council for Terminal Attachments shall file 
with the Commission, within 180 days of publication of these rules in 
the Federal Register, a detailed report of the structure of the 
database, including details of how the Administrative Council for 
Terminal Attachments will administer the database, the pertinent

[[Page 369]]

information to be included in the database, procedures for including 
compliance information in the database, and details regarding how the 
government and the public will access the information.



Sec. 68.612  Labels on terminal equipment.

    Terminal equipment certified by a Telecommunications Certification 
Body or approved by the Supplier's Declaration of Conformity under this 
part shall be labeled. The Administrative Council for Terminal 
Attachments shall establish appropriate labeling of terminal equipment. 
Labeling shall meet the requirements of the Federal Communications 
Commission and the U.S. Customs Service for their respective enforcement 
purposes, and of consumers for purposes of identifying the responsible 
party, manufacturer and model number.

    Effective Date Note: At 67 FR 57182, Sept. 9, 2002, Sec. 68.612 was 
revised, effective Oct. 9, 2002. For the convenience of the user, the 
revised text is set forth as follows:

Sec. 68.612  Labels on terminal equipment.

    Terminal equipment certified by a Telecommunications Certification 
Body or approved by the Supplier's Declaration of Conformity under this 
part shall be labeled. The Administrative Council for Terminal 
Attachments shall establish appropriate labeling of terminal equipment. 
Labeling shall meet the requirements of the Federal Communications 
Commission and the U.S. Customs Service for their respective enforcement 
purposes, and of consumers for purposes of identifying the responsible 
party and model number.



Sec. 68.614  Oppositions and appeals.

    (a) Oppositions filed in response to the Administrative Council for 
Terminal Attachments' public notice of technical criteria proposed for 
publication must be received by the Administrative Council for Terminal 
Attachments within 30 days of public notice to be considered. 
Oppositions to proposed technical criteria shall be addressed through 
the appeals procedures of the authoring standards development 
organization and of the American National Standards Institute. If these 
procedures have been exhausted, the aggrieved party shall file its 
opposition with the Commission for de novo review.
    (b) As an alternative, oppositions to proposed technical criteria 
may be filed directly with the Commission for de novo review within the 
30 day public notice period.



PART 69--ACCESS CHARGES--Table of Contents




                           Subpart A--General

Sec.
69.1  Application of access charges.
69.2  Definitions.
69.3  Filing of access service tariffs.
69.4  Charges to be filed.
69.5  Persons to be assessed.

                    Subpart B--Computation of Charges

69.101  General.
69.104  End user common line for non-price cap incumbent local exchange 
          carriers.
69.105  Carrier common line for non-price cap local exchange carriers.
69.106  Local switching.
69.108  Transport rate benchmark.
69.109  Information.
69.110  Entrance facilities.
69.111  Tandem-switched transport and tandem charge.
69.112  Direct-trunked transport.
69.113  Non-premium charges for MTS-WATS equivalent services.
69.114  Special access.
69.115  Special access surcharges.
69.116  Universal service fund.
69.117  Lifeline assistance.
69.118  Traffic sensitive switched services.
69.119  Basic service element expedited approval process.
69.120  Line information database.
69.121  Connection charges for expanded interconnection.
69.123  Density pricing zones for special access and switched transport.
69.124  Interconnection charge.
69.125  Dedicated signalling transport.
69.126  Nonrecurring charges.
69.127  Transitional Equal Charge Rule.
69.128  Billing name and address.
69.129  Signalling for tandem switching.
69.130  Line port costs in excess of basic analog service.
69.131  Universal service end user charges.

 Subpart C--Computation of Charges for Price Cap Local Exchange Carriers

69.151  Applicability.
69.152  End user common line for price cap local exchange carriers.
69.153  Presubscribed interexchange carrier charge (PICC).
69.154  Per-minute carrier common line charge.

[[Page 370]]

69.155  Per-minute residual interconnection charge.
69.156  Marketing expenses.
69.157  Line port costs in excess of basic, analog service.
69.158  Universal service and user charges.

               Subpart D--Apportionment of Net Investment

69.301  General.
69.302  Net investment.
69.303  Information origination/termination equipment (IOT).
69.304  Subscriber line cable and wire facilities.
69.305  Carrier cable and wire facilities (C&WF).
69.306  Central office equipment (COE).
69.307  General support facilities.
69.308  [Reserved]
69.309  Other investment.
69.310  Capital leases.

                  Subpart E--Apportionment of Expenses

69.401  Direct expenses.
69.402  Operating taxes (Account 7200).
69.403  Marketing expenses (Account 6610).
69.404  Telephone operator services expenses in Account 6620.
69.405  Published directory expenses in Account 6620.
69.406  Local business office expenses in Account 6620.
69.407  Revenue accounting expenses in Account 6620.
69.408  All other customer services expenses in Account 6620.
69.409  Corporate operations expenses (included in Account 6720).
69.411  Other expenses.
69.412  Non participating company payments/receipts.
69.413  Universal service fund expenses.
69.414  Lifeline assistance expenses.
69.415  Reallocation of certain transport expenses.

    Subpart F--Segregation of Common Line Element Revenue Requirement

69.501  General.
69.502  Base factor allocation.

                 Subpart G--Exchange Carrier Association

69.601  Exchange carrier association.
69.602  Board of directors.
69.603  Association functions.
69.604  Billing and collection of access charges.
69.605  Reporting and distribution of pool access revenues.
69.606  Computation of average schedule company payments.
69.607  Disbursement of Carrier Common Line residue.
69.608  Carrier Common Line hypothetical net balance.
69.609  End User Common Line hypothetical net balances.
69.610  Other hypothetical net balances.
69.612  Long term and transitional support.

                     Subpart H--Pricing Flexibility

69.701  Application of rules in this supbart.
69.703  Definitions.
69.705  Procedure.
69.707  Geographic scope of petition.
69.709  Dedicated transport and special access services other than 
          channel terminations between LEC end offices and customer 
          premises.
69.711  Channel terminations between LEC end offices and customer 
          premises.
69.713  Common line, traffic-sensitive, and tandem-switched transport 
          services.
69.714-69.724  [Reserved]
69.725  Attribution of revenues to particular wire centers.
69.727  Regulatory relief.
69.729  New services.
69.731  Low-end adjustment mechanism.

    Authority: 47 U.S.C. 154, 201, 202, 203, 205, 218, 220, 254, 403.

    Source: 48 FR 10358, Mar. 11, 1983, unless otherwise noted.



                           Subpart A--General



Sec. 69.1  Application of access charges.

    (a) This part establishes rules for access charges for interstate or 
foreign access services provided by telephone companies on or after 
January 1, 1984.
    (b) Except as provided in Sec. 69.1(c), charges for such access 
service shall be computed, assessed, and collected and revenues from 
such charges shall be distributed as provided in this part. Access 
service tariffs shall be filed and supported as provided under part 61 
of this chapter, except as modified herein.
    (c) The following provisions of this part shall apply to telephone 
companies subject to price cap regulation only to the extent that 
application of such provisions is necessary to develop the nationwide 
average carrier common line charge, for purposes of reporting pursuant 
to Secs. 43.21 and 43.22 of this chapter, and for computing initial 
charges for new rate elements: Secs. 69.3(f), 69.106(b), 69.106(f), 
69.106(g), 69.109(b), 69.110(d), 69.111(c), 69.111(g)(1), 69.111(g)(2), 
69.111(g)(3), 69.111(l), 69.112(d), 69.114(b), 69.114(d), 69.125(b)(2), 
69.301 through 69.310, and 69.401 through

[[Page 371]]

69.412. The computation of rates pursuant to these provisions by 
telephone companies subject to price cap regulation shall be governed by 
the price cap rules set forth in part 61 of this chapter and other 
applicable Commission rules and orders.

[48 FR 10358, Mar. 11, 1983, as amended at 55 FR 42385, Oct. 19, 1990; 
58 FR 41189, Aug. 3, 1993; 62 FR 40463, July 29, 1997]



Sec. 69.2  Definitions.

    For purposes of the part:
    (a) Access Minutes or Access Minutes of Use is that usage of 
exchange facilities in interstate or foreign service for the purpose of 
calculating chargeable usage. On the orginating end of an interstate or 
foreign call, usage is to be measured from the time the originating end 
user's call is delivered by the telephone company and acknowledged as 
received by the interexchange carrier's facilities connected with the 
originating exchange. On the terminating end of an interstate or foreign 
call, usage is to be measured from the time the call is received by the 
end user in the terminating exchange. Timing of usage at both the 
orginating and terminating end of an interstate or foreign call shall 
terminate when the calling or called party disconnects, whichever event 
is recognized first in the originating and terminating end exchanges, as 
applicable;
    (b) Access Service includes services and facilities provided for the 
origination or termination of any interstate or foreign 
telecommunication;
    (c) Annual revenue requirement means the sum of the return component 
and the expense component;
    (d) Association means the telephone company association described in 
subpart G of this part;
    (e) Big Three Expenses are the combined expense groups comprising: 
Plant Specific Operations Expense, Accounts 6110, 6120, 6210, 6220, 
6230, 6310 and 6410; Plant Nonspecific Operations Expenses, Accounts 
6510, 6530 and 6540, and Customer Operations Expenses, Accounts 6610 and 
6620;
    (f) Big Three Expense Factors are the ratios of the sum of Big Three 
Expenses apportioned to each element or category to the combined Big 
Three Expenses.
    (g) Cable and Wire Facilities includes all equipment or facilities 
that are described as cable and wire facilities in the Separations 
Manual and included in Account 2410.
    (h) Carrier Cable and Wire Facilities means all cable and wire 
facilities that are not subscriber line cable and wire facilities;
    (i) Central Office Equipment or COE includes all equipment or 
facilities that are described as Central Office Equipment in the 
Separations Manual and included in Accounts 2210, 2220 and 2230.
    (j) Corporate Operations Expenses are included in General and 
Administrative Expenses (Account 6720);
    (k) Customer Operations Expenses include Marketing and Services 
expenses in Accounts 6610 and 6620, respectively;
    (l) Direct Expense means expenses that are attributable to a 
particular category or categories of tangible investment described in 
subpart D of this part and includes:
    (1) Plant Specific Operations expenses in Accounts 6110, 6120, 6210, 
6220, 6230, 6310 and 6410; and
    (2) Plant Nonspecific Operations Expenses in Accounts 6510, 6530, 
6540 and 6560;
    (m) End User means any customer of an interstate or foreign 
telecommunications service that is not a carrier except that a carrier 
other than a telephone compauy shall be deemed to be an ``end user'' 
when such carrier uses a telecommunications service for administrative 
purposes and a person or entity that offers telecommunications services 
exclusively as a reseller shall be deemed to be an ``end user'' if all 
resale transmissions offered by such reseller originate on the premises 
of such reseller;
    (n) Entry Switch means the telephone company switch in which a 
transport line or trunk terminates;
    (o) Expense Component means the total expenses and income charges 
for an annual period that are attributable to a particular element or 
category;
    (p) Expenses include allowable expenses in the Uniform System of 
Accounts, part 32, apportioned to interstate or international services 
pursuant to the Separations Manual and allowable income charges 
apportioned to

[[Page 372]]

interstate and international services pursuant to the Separations 
Manual;
    (q) General Support Facilities include buildings, land, vehicles, 
aircraft, work equipment, furniture, office equipment and general 
purpose computers as described in the Separations Manual and included in 
Account 2110.
    (r) Information Origination/Termination Equipment includes all 
equipment or facilities that are described as information origination/
termination equipment in the Separations Manual and in Account 2310 
except information origination/termination equipment that is used by 
telephone companies in their own operations.
    (s) Interexchange or the interexchange category includes services or 
facilities provided as an integral part of interstate or foreign 
telecommunications that is not described as ``access service'' for 
purposes of this part;
    (t) Level I Contributors. Telephone companies that are not 
association Common Line tariff participants, file their own Common Line 
tariffs effective April 1, 1989, and had a lower than average Common 
Line revenue requirement per minute of use in 1988 and thus were net 
contributors (i.e., had a negative net balance) to the association 
Common Line pool in 1988.
    (u) Level I Receivers. Telephone companies that are not association 
Common Line tariff participants, file their own Common Line tariffs 
effective April 1, 1989, and had a higher than average Common Line 
revenue requirement per minute of use in 1988 and thus were net 
receivers (i.e., had a positive net balance) from the association Common 
Line Pool in 1988.
    (v) Level II Contributors. A telephone company or group of 
affiliated telephone companies with fewer than 300,000 access lines and 
less than $150 million in annual operating revenues that is not an 
association Common Line tariff participant, that files its own Common 
Line tariff effective July 1, 1990, and that had a lower than average 
Common Line revenue requirement per minute of use in 1988 and thus was a 
net contributor (i.e., had a negative net balance) to the association 
Common Line pool in 1988.
    (w) Level II Receivers. A telephone company or group of affiliated 
telephone companies with fewer than 300,000 access lines and less than 
$150 million in annual operating revenues that is not an association 
Common Line tariff participant, that files its own Common Line tariff 
effective July 1, 1990, and that had a higher than average Common Line 
revenue requirement per minute of use in 1988 and thus was a net 
receiver (i.e., had a positive net balance) from the association Common 
Line pool in 1988.
    (x) Line or Trunk includes, but is not limited to, transmission 
media such as radio, satellite, wire, cable and fiber optic cable means 
of transmission;
    (y) Long Term Support (LTS) means funds that are provided pursuant 
to Sec. 54.303 of part 54.
    (z) Net Investment means allowable original cost investment in 
Accounts 2001 through 2003, 1220 and the investments in nonaffiliated 
companies included in Account 1410, that has been apportioned to 
interstate and foreign services pursuant to the Separations Manual from 
which depreciation, amortization and other reserves attributable to such 
investment that has been apportioned to interstate and foreign services 
pursuant to the Separations Manual have been subtracted and to which 
working capital that is attributable to interstate and foreign services 
has been added;
    (aa) Operating Taxes include all taxes in Account 7200;
    (bb) Origination of a service that is switched in a Class 4 switch 
or an interexchange switch that performs an equivalent function ends 
when the transmission enters such switch and termination of such a 
service begins when the transmission leaves such a switch, except that;
    (1) Switching in a Class 4 switch or transmission between Class 4 
switches that is not deemed to be interexchange for purposes of the 
Modified Final Judgement entered August 24, 1982, in United States v 
Western Electric Co., D.C. Civil Action No. 82-0192, will be 
``origination'' or ``termination'' for purposes of this part; and
    (2) Origination and Termination does not include the use of any part 
of a line, trunk or switch that is not owned or leased by a telephone 
company;

[[Page 373]]

    (cc) Origination of any service other than a service that is 
switched in a Class 4 switch or a switch that performs an equivalent 
function ends and ``termination'' of any such service begins at a point 
of demarcation that corresponds with the point of demarcation that is 
used for a service that is switched in a Class 4 switch or a switch that 
performs an equivalent function;
    (dd) Private Line means a line that is used exclusively for an 
interexchange service other than MTS, WATS or an MTS-WATS equivalent 
service, including a line that is used at the closed end of an FX WATS 
or CCSA service or any service that is substantially equivalent to a 
CCSA service;
    (ee) Public Telephone is a telephone provided by a telephone company 
through which an end user may originate interstate or foreign 
telecommunications for which he pays with coins or by credit card, 
collect or third number billing procedures;
    (ff) Return Component means net investment attributable to a 
particular element or category multiplied by the authorized annual rate 
of return;
    (gg) Subscriber Line Cable and Wire Facilities means all lines or 
trunks on the subscriber side of a Class 5 or end office switch, 
including lines or trunks that do not terminate in such a switch, except 
lines or trunks that connect an interexchange carrier;
    (hh) Telephone company or local exchange carrier as used in this 
part means an incumbent local exchange carrier as defined in section 
251(h)(1) of the 1934 Act as amended by the 1996 Act.
    (ii) Transitional Support (TRS) means funds provided by telephone 
companies that are not association Common Line tariff participants, but 
were net contributors to the association Common Line pool in 1988, to 
telephone companies that are not association Common Line tariff 
participants and were net receivers from the association Common Line 
pool in 1988;
    (jj) Unit of Capacity means the capability to transmit one 
conversation;
    (kk) WATS Access Line means a line or trunk that is used exclusively 
for WATS service.
    (ll) Equal access investment and equal access expenses mean equal 
access investment and expenses as defined for purposes of the part 36 
separations rules.
    (mm) Basic Service Elements are optional unbundled features that 
enhanced service providers may require or find useful in the provision 
of enhanced services, as defined in Amendments of part 69 of the 
Commission's rules relating to the Creation of Access Charge Subelements 
for Open Network Architecture, Report and Order, 6 FCC Rcd --------, CC 
Docket No. 89-79, FCC 91-186 (1991).
    (nn) Dedicated Signalling Transport means transport of out-of-band 
signalling information between an interexchange carrier or other 
person's common channel signalling network and a telephone company's 
signalling transport point on facilities dedicated to the use of a 
single customer.
    (oo) Direct-trunked transport means transport on circuits dedicated 
to the use of a single interexchange carrier or other person, without 
switching at the tandem,
    (1) Between the serving wire center and the end office, or
    (2) Between two customer-designated telephone company offices.
    (pp) End Office means the telephone company office from which the 
end user receives exchange service.
    (qq) Entrance Facilities means transport from the interexchange 
carrier or other person's point of demarcation to the serving wire 
center.
    (rr) Serving Wire Center means the telephone company central office 
designated by the telephone company to serve the geographic area in 
which the interexchange carrier or other person's point of demarcation 
is located.
    (ss) Tandem-switched transport means transport of traffic that is 
switched at a tandem switch--
    (1) Between the serving wire center and the end office, or
    (2) Between the telephone company office containing the tandem 
switching equipment, as described in Sec. 36.124 of this chapter, and 
the end office.

Tandem-switched transport between a serving wire center and an end 
office consists of circuits dedicated to the use of a single 
interexchange carrier or

[[Page 374]]

other person from the serving wire center to the tandem (although this 
dedicated link will not exist if the serving wire center and the tandem 
are located in the same place) and circuits used in common by multiple 
interexchange carriers or other persons from the tandem to the end 
office.
    (tt) [Reserved]
    (uu) Price cap regulation means the method of regulation of dominant 
carriers provided in Secs. 61.41 through 61.49 of this chapter.
    (vv) Signalling for tandem switching means the carrier 
identification code (CIC) and the OZZ code, or equivalent information 
needed to perform tandem switching functions. The CIC identifies the 
interexchange carrier and the OZZ identifies the interexchange carrier 
trunk to which traffic should be routed.
    (ww) Interstate Common Line Support (ICLS) means funds that are 
provided pursuant to Sec. 54.901 of this chapter.

[52 FR 37309, Oct. 6, 1987, as amended at 53 FR 28395, July 28, 1988; 53 
FR 30059, Aug. 10, 1988; 54 FR 3456, Jan. 24, 1989; 54 FR 11718, Mar. 
22, 1989; 55 FR 6990, Feb. 28, 1990; 56 FR 33880, July 24, 1991; 57 FR 
54719, Nov. 20, 1992; 58 FR 41189, Aug. 3, 1993; 59 FR 32930, June 27, 
1994; 62 FR 31932, June 11, 1997; 62 FR 32962, June 17, 1997; 64 FR 
46593, Aug. 26, 1999; 66 FR 59730, Nov. 30, 2001; 67 FR 5703, Feb. 6, 
2002]



Sec. 69.3  Filing of access service tariffs.

    (a) Except as provided in paragraphs (g) and (h) of this section, a 
tariff for access service shall be filed with this Commission for a two-
year period. Such tariffs shall be filed with a scheduled effective date 
of July 1. Such tariff filings shall be limited to rate level changes.
    (b) The requirements imposed by paragraph (a) of this section shall 
not preclude the filing of revisions to those annual tariffs that will 
become effective on dates other than July 1.
    (c) Any access service tariff filing, the filing of any petitions 
for rejection, investigation or suspension and the filing of any 
responses to such petitions shall comply with the applicable rules of 
this Commission relating to tariff filings.
    (d) The association shall file a tariff as agent for all telephone 
companies that participate in an association tariff.
    (e) A telephone company or group of telephone companies may file a 
tariff that is not an association tariff. Such a tariff may cross-
reference the association tariff for some access elements and include 
separately computed charges of such company or companies for other 
elements. Any such tariff must comply with the requirements hereinafter 
provided:
    (1) Such a tariff must cross reference association charges for the 
Carrier Common Line and End User Common Line element or elements if such 
company or companies participate in the pooling of revenues and revenue 
requirements for such elements.
    (2) Such a tariff that cross-references an association charge for 
any end user access element must cross-reference association charges for 
all end user access elements;
    (3) Such a tariff that cross-references an association charge for 
any carrier's carrier access element other than the Carrier Common Line 
element must cross-reference association charges for all carrier's 
carrier access charges other than the Carrier Common Line element;
    (4) Except for charges subject to price cap regulation as that term 
is defined in Sec. 61.3(v) of this chapter, any charge in such a tariff 
that is not an association charge must be computed to reflect the 
combined investment and expenses of all companies that participate in 
such a charge;
    (5) A telephone company or companies that elect to file such a 
tariff for 1984 access charges shall notify AT&T on or before the 40th 
day after the release of the Commission order adopting this part;
    (6) A telephone company or companies that elect to file such a 
tariff shall notify the association not later than March 1 of the year 
the tariff becomes effective, if such company or companies did not file 
such a tariff in the preceding biennial period or cross-reference 
association charges in such preceding period that will be cross-
referenced in the new tariff. A telephone company or companies that 
elect to file such a tariff not in the biennial period shall file its 
tariff to become effective July 1 for a period of one year. Thereafter, 
such telephone company or

[[Page 375]]

companies must file its tariff pursuant to paragraphs (f)(1) or (f)(2) 
of this section.
    (7) Such a tariff shall not contain charges for any access elements 
that are disaggregated or deaveraged within a study area that is used 
for purposes of jurisdictional separations, except as otherwise provided 
in this chapter.
    (8) Such a tariff shall not contain charges included in the billing 
and collection category.
    (9) A telephone company or group of affiliated telephone companies 
that elects to file its own Carrier Common Line tariff pursuant to 
paragraph (a) of this section shall notify the association not later 
than March 1 of the year the tariff becomes effective that it will no 
longer participate in the association tariff. A telephone company or 
group of affiliated telephone companies that elects to file its own 
Carrier Common Line tariff for one of its study areas shall file its own 
Carrier Common Line tariff(s) for all of its study areas.
    (10) Any data supporting a tariff that is not an association tariff 
shall be consistent with any data that the filing carrier submitted to 
the association.
    (11) Any changes in Association common line tariff participation and 
Long Term and Transitional Support resulting from the merger or 
acquisition of telephone properties are to be made effective on the next 
annual access tariff filing effective date following consummation of the 
merger or acquisition transaction, in accordance with the provisions of 
Sec. 69.3(e)(9).
    (f)(1) A tariff for access service provided by a telephone company 
that is required to file an access tariff pursuant to Sec. 61.38 of this 
Chapter shall be filed for a biennial period and with a scheduled 
effective date of July 1 of any even numbered year.
    (2) A tariff for access service provided by a telephone company that 
may file an access tariff pursuant to Sec. 61.39 of this Chapter shall 
be filed for a biennial period and with a scheduled effective date of 
July 1 of any odd numbered year. Any such telephone company that does 
not elect to file an access tariff pursuant to the Sec. 61.39 
procedures, and does not participate in the Association tariff, and does 
not elect to become subject to price cap regulation, must file an access 
tariff pursuant to Sec. 61.38 for a biennial period and with a scheduled 
effective date of July 1 of any even numbered year.
    (3) For purposes of computing charges for access elements other than 
Common Line elements to be effective on July 1 of any even-numbered 
year, the association may compute rate changes based upon statistical 
methods which represent a reasonable equivalent to the cost support 
information otherwise required under part 61 of this chapter.
    (g) The following rules apply to telephone company participation in 
the Association common line pool for telephone companies involved in a 
merger or acquisition.
    (1) Notwithstanding the requirements of Sec. 69.3(e)(9), any 
Association common line tariff participant that is party to a merger or 
acquisition may continue to participate in the Association common line 
tariff.
    (2) Notwithstanding the requirements of Sec. 69.3(e)(9), any 
Association common line tariff participant that is party to a merger or 
acquisition may include other telephone properties involved in the 
transaction in the Association common line tariff, provided that the net 
addition of common lines to the Association common line tariff resulting 
from the transaction in not greater than 50,000, and provided further 
that, if any common lines involved in a merger or acquisition are 
returned to the Association common line tariff, all of the common lines 
involved in the merger or acquisition must be returned to the 
Association common line tariff.
    (3) Telephone companies involved in mergers or acquisitions that 
wish to have more than 50,000 common lines reenter the Association 
common line pool must request a waiver of Sec. 69.3(e)(9). If the 
telephone company has met all other legal obligations, the waiver 
request will be deemed granted on the sixty-first (61st) day from the 
date of public notice inviting comment on the requested waiver unless:
    (i) The merger or acquisition involves one or more partial study 
areas;
    (ii) The waiver includes a request for confidentiality of some or 
all of the materials supporting the request;

[[Page 376]]

    (iii) The waiver includes a request to return only a portion of the 
telephone properties involved in the transaction to the Association 
common line tariff;
    (iv) The Commission rejects the waiver request prior to the 
expiration of the sixty-day period;
    (v) The Commission requests additional time or information to 
process the waiver application prior to the expiration of the sixty-day 
period; or
    (vi) A party, in a timely manner, opposes a waiver request or seeks 
conditional approval of the waiver in response to our public notice of 
the waiver request.
    (h) Local exchange carriers subject to price cap regulation as that 
term is defined in Sec. 61.3(ee) of this chapter, shall file with this 
Commission a price cap tariff for access service for an annual period. 
Such tariffs shall be filed to meet the notice requirements of 
Sec. 61.58 of this chapter, with a scheduled effective date of July 1. 
Such tariff filings shall be limited to changes in the Price Cap 
Indexes, rate level changes (with corresponding adjustments to the 
affected Actual Price Indexes and Service Band Indexes), and the 
incorporation of new services into the affected indexes as required by 
Sec. 61.49 of this chapter.
    (i) The following rules apply to the withdrawal from Association 
tariffs under the provision of paragraph (e)(6) or (e)(9) of this 
section or both by telephone companies electing to file price cap 
tariffs pursuant to paragraph (h) of this section.
    (1) In addition to the withdrawal provisions of paragraphs (e)(6) 
and (e)(9) of this section, a telephone company or group of affiliated 
companies that participates in one or more association tariffs during 
the current tariff year and that elects to file price cap tariffs or 
optional incentive regulation tariffs effective July 1 of the following 
tariff year shall notify the association by March 1 of the following 
tariff year that it is withdrawing from association tariffs, subject to 
the terms of this section, to participate in price cap regulation or 
optional incentive regulation.
    (2) The Association shall maintain records of such withdrawals 
sufficient to discharge its obligations under these Rules and to detect 
efforts by such companies or their affiliates to rejoin any Association 
tariffs in violation of the provisions of paragraph (i)(4) of this 
section.
    (3) Notwithstanding the provisions of paragraphs (e) (3), (6), and 
(9) of this section, in the event a telephone company withdraws from all 
Association tariffs for the purpose of filing price cap tariffs or 
optional incentive plan tariffs, such company shall exclude from such 
withdrawal all ``average schedule'' affiliates and all affiliates so 
excluded shall be specified in the withdrawal. However, such company may 
include one or more ``average schedule'' affiliates in price cap 
regulation or optional incentive plan regulation provided that each 
price cap or optional incentive plan affiliate relinquishes ``average 
schedule'' status and withdraws from all Association tariffs and any 
tariff filed pursuant to Sec. 61.39(b)(2) of this chapter. See generally 
Secs. 69.605(c), 61.39(b) of this chapter; MTS and WATS Market 
Structure: Average Schedule Companies, Report and Order, 103 FCC 2d 
1026-1027 (1986).
    (4) If a telephone company elects to withdraw from Association 
tariffs and thereafter becomes subject to price cap regulation as that 
term is defined in Sec. 61.3(v) of this chapter, neither such telephone 
company nor any of its withdrawing affiliates shall thereafter be 
permitted to participate in any Association tariffs.
    (j) [Reserved]

(47 U.S.C. 154 (i) and (j), 201, 202, 203, 205, 218 and 403 and 5 U.S.C. 
553)

[48 FR 10358, Mar. 11, 1983, as amended at 48 FR 43017, Sept. 21, 1983; 
50 FR 41356, Oct. 10, 1985; 51 FR 6119, Feb. 20, 1986; 51 FR 42236, Nov. 
24, 1986; 52 FR 21540, June 8, 1987; 52 FR 37310, Oct. 6, 1987; 53 FR 
36289, Sept. 19, 1988; 54 FR 39534, Sept. 27, 1989; 55 FR 6990, Feb. 28, 
1990; 55 FR 42385, Oct. 19, 1990; 55 FR 50558, Dec. 7, 1990; 58 FR 
36149, July 6, 1993; 64 FR 46593, Aug. 26, 1999; 64 FR 51266, Sept. 22, 
1999; 65 FR 57743, Sept. 26, 2000; 65 FR 64894, Oct. 31, 2000]



Sec. 69.4  Charges to be filed.

    (a) The end user charges for access service filed with this 
Commission shall include charges for the End User Common Line element, 
and for line port costs in excess of basic, analog service.

[[Page 377]]

    (b) Except as provided in paragraphs (c), (e), and (h) of this 
section, and in Sec. 69.118, the carrier's carrier charges for access 
service filed with this Commission shall include charges for each of the 
following elements:

    (1) [Reserved]
    (2) Carrier common line, provided that after June 30, 2003, non-
price cap local exchange carriers may not assess a carrier common line 
charge;
    (3) Local switching;
    (4) Information;
    (5) Tandem-switched transport;
    (6) Direct-trunked transport;
    (7) Special access; and
    (8) Line information database;
    (9) Entrance facilities.
    (c) [Reserved]
    (d) Recovery of Contributions to the Universal Service Support 
Mechanisms by Incumbent Local Exchange Carriers.
    (1) [Reserved]
    (2)(i) Local exchange carriers may recover their contributions to 
the universal service support mechanisms only through explicit, 
interstate, end-user charges assessed pursuant to either Sec. 69.131 or 
Sec. 69.158 that are equitable and nondiscriminatory.
    (ii) Local exchange carriers may not recover any of their 
contributions to the universal service support mechanisms through access 
charges imposed on interexchange carriers.
    (e) The carrier's carrier charges for access service filed with this 
Commission by the telephone companies specified in Sec. 64.1401(a) of 
this chapter shall include an element for connection charges for 
expanded interconnection. The carrier's carrier charges for access 
service filed with this Commission by the telephone companies not 
specified in Sec. 64.1401(a) of this chapter may include an element for 
connection charges for expanded interconnection.
    (f) [Reserved]
    (g) Local exchange carriers may establish appropriate rate elements 
for a new service, within the meaning of Sec. 61.3(x) of this chapter, 
in any tariff filing.
    (h) In addition to the charges specified in paragraph (b) of this 
section, the carrier's carrier charges for access service filed with 
this Commission by price cap local exchange carriers shall include 
charges for each of the following elements:
    (1) Presubscribed interexchange carrier;
    (2) Per-minute residual interconnection;
    (3) Dedicated local switching trunk port;
    (4) Shared local switching trunk pork;
    (5) Dedicated tandem switching trunk port;
    (6) [Reserved]
    (7) Multiplexers associated with tandem switching.
    (i) Paragraphs (b) and (h) of this section are not applicable to a 
price cap local exchange carrier to the extent that it has been granted 
the pricing flexibility in Sec. 69.727(b)(1).
    (j) In addition to the charges specified in paragraph (b) of this 
section, the carrier's carrier charges for access service filed with 
this Commission by non-price cap local exchange carriers may include 
charges for each of the following elements:
    (1) Dedicated local switching trunk port;
    (2) Shared local switching trunk port;
    (3) Dedicated tandem switching trunk port;
    (4) Multiplexers associated with tandem switching;
    (5) DS1/voice grade multiplexers associated with analog switches; 
and
    (6) Per-message call setup.

[48 FR 43017, Sept. 21, 1983, as amended at 52 FR 21540, June 8, 1987; 
52 FR 37310, Oct. 6, 1987; 54 FR 11718, Mar. 22, 1989; 56 FR 33880, July 
24, 1991; 57 FR 24380, June 9, 1992; 57 FR 54332, Nov. 18, 1993; 57 FR 
54719, Nov. 20, 1993; 58 FR 30995, May 28, 1993; 62 FR 4660, Jan. 31, 
1997; 62 FR 31932, June 11, 1997; 62 FR 56132, Oct. 29, 1997; 64 FR 
51266, Sept. 22, 1999; 64 FR 60359, Nov. 5, 1999; 65 FR 38701, June 21, 
2000; 65 FR 57743, Sept. 26, 2000; 66 FR 59730, Nov. 30, 2001]



Sec. 69.5  Persons to be assessed.

    (a) End user charges shall be computed and assessed upon public end 
users, and upon providers of public telephones, as defined in this 
subpart, and as provided in subpart B of this part.

[[Page 378]]

    (b) Carrier's carrier charges shall be computed and assessed upon 
all interexchange carriers that use local exchange switching facilities 
for the provision of interstate or foreign telecommunications services.
    (c) Special access surcharges shall be assessed upon users of 
exchange facilities that interconnect these facilities with means of 
interstate or foreign telecommunications to the extent that carrier's 
carrier charges are not assessed upon such interconnected usage. As an 
interim measure pending the development of techniques accurately to 
measure such interconnected use and to assess such charges on a 
reasonable and non-discriminatory basis, telephone companies shall 
assess special access surcharges upon the closed ends of private line 
services and WATS services pursuant to the provisions of Sec. 69.115 of 
this part.
    (d) [Reserved]

(47 U.S.C. 154 (i) and (j), 201, 202, 203, 205, 218 and 403 and 5 U.S.C. 
553)

[48 FR 43017, Sept. 21, 1983, as amended at 51 FR 10840, Mar. 31, 1986; 
51 FR 33752, Sept. 23, 1986; 52 FR 21540, June 8, 1987; 54 FR 50624, 
Dec. 8, 1989; 61 FR 65364, Dec. 12, 1996; 64 FR 60359, Nov. 5, 1999]



                    Subpart B--Computation of Charges



Sec. 69.101  General.

    Except as provided in Sec. 69.1 and subpart C of this part, charges 
for each access element shall be computed and assessed as provided in 
this subpart.

[55 FR 42386, Oct. 19, 1990]



Sec. 69.104  End user common line for non-price cap incumbent local exchange carriers.

    (a) This section is applicable only to incumbent local exchange 
carriers that are not subject to price cap regulation as that term is 
defined in Sec. 61.3(ee) of this chapter. A charge that is expressed in 
dollars and cents per line per month shall be assessed upon end users 
that subscribe to local exchange telephone service or Centrex service to 
the extent they do not pay carrier common line charges. A charge that is 
expressed in dollars and cents per line per month shall be assessed upon 
providers of public telephones. Such charges shall be assessed for each 
line between the premises of an end user, or public telephone location, 
and a Class 5 office that is or may be used for local exchange service 
transmissions.
    (b) Charges to multi-line subscribers shall be computed by 
multiplying a single line rate by the number of lines used by such 
subscriber.
    (c) Until December 31, 2001, except as provided in paragraphs (d) 
through (h) of this section, the single-line rate or charge shall be 
computed by dividing one-twelfth of the projected annual revenue 
requirement for the End User Common Line element by the projected 
average number of local exchange service subscriber lines in use during 
such annual period.
    (d)(1) Until December 31, 2001, if the monthly charge computed in 
accordance with paragraph (c) of this section exceeds $6, the charge for 
each local exchange service subscriber line, except a residential line, 
a single-line business line, or a line used for Centrex-CO service that 
was in place or on order as of July 27, 1983, shall be $6.
    (2) Until December 31, 2001, the charge for each subscriber line 
associated with a public telephone shall be equal to the monthly charge 
computed in accordance with paragraph (d)(1) of this section.
    (e) Until December 31, 2001, the monthly charge for each residential 
and single-line business local exchange service subscriber shall be the 
charge computed in accordance with paragraph (c) of this section, or 
$3.50, whichever is lower.
    (f) Except as provided in Sec. 54.403 of this chapter, the charge 
for each residential local exchange service subscriber line shall be the 
same as the charge for each single-line business local exchange service 
subscriber line.
    (g) A line shall be deemed to be a residential line if the 
subscriber pays a rate for such line that is described as a residential 
rate in the local exchange service tariff.
    (h) A line shall be deemed to be a single line business line if the 
subscriber pays a rate that is not described as a residential rate in 
the local exchange service tariff and does not obtain more

[[Page 379]]

than one such line from a particular telephone company.
    (i) The End User Common Line charge for each multi-party subscriber 
shall be assessed as if such subscriber had subscribed to single-party 
service.
    (j)-(l) [Reserved]
    (m) No charge shall be assessed for any WATS access line.
    (n)(1) Beginning January 1, 2002, except as provided in paragraph 
(r) of this section, the maximum monthly charge for each residential or 
single-line business local exchange service subscriber line shall be the 
lesser of:
    (i) One-twelfth of the projected annual revenue requirement for the 
End User Common Line element divided by the projected average number of 
local exchange service subscriber lines in use during such annual 
period; or
    (ii) The following:
    (A) Beginning January 1, 2002, $5.00.
    (B) Beginning July 1, 2002, $6.00.
    (C) Beginning July 1, 2003, $6.50.
    (2) In the event that GDP-PI exceeds 6.5% or is less than 0%, the 
maximum monthly charge in paragraph (n)(1)(ii) of this section will be 
adjusted in the same manner as the adjustment in Sec. 69.152(d)(2).
    (o)(1) Beginning on January 1, 2002, except as provided in paragraph 
(r) of this section, the maximum monthly End User Common Line Charge for 
multi-line business lines will be the lesser of:
    (i) $9.20; or
    (ii) One-twelfth of the projected annual revenue requirement for the 
End User Common Line element divided by the projected average number of 
local exchange service subscriber lines in use during such annual 
period;
    (2) In the event that GDP-PI is greater than 6.5% or is less than 
0%, the maximum monthly charge in paragraph (o)(1)(i) of this section 
will be adjusted in the same manner as the adjustment in 
Sec. 69.152(k)(2).
    (p) Beginning January 1, 2002, non-price cap local exchange carriers 
shall assess:
    (1) No more than one End User Common Line charge as calculated under 
the applicable method under paragraph (n) of this section for Basic Rate 
Interface integrated services digital network (ISDN) service.
    (2) No more than five End User Common Line charges as calculated 
under paragraph (o) of this section for Primary Rate Interface ISDN 
service.
    (q) In the event a non-price cap local exchange carrier charges less 
than the maximum End User Common Line charge for any subscriber lines, 
the carrier may not recover the difference between the amount collected 
and the maximum from carrier common line charges, Interstate Common Line 
Support, or Long Term Support.
    (r) End User Common Line charge deaveraging. Beginning on January 1, 
2002, non-price cap local exchange carriers may geographically deaverage 
End User Common Line charges subject to the following conditions.
    (1) In order for a non-price cap local exchange carrier to be 
allowed to deaverage End User Common Line charges within a study area, 
the non-price cap local exchange carrier must have:
    (i) State commission-approved geographically deaveraged rates for 
UNE loops within that study area; or
    (ii) A universal service support disaggregation plan established 
pursuant to Sec. 54.315 of this chapter.
    (2) All geographic deaveraging of End User Common Line charges by 
customer class within a study area must be according to the state 
commission-approved UNE loop zone, or the universal service support 
disaggregation plan established pursuant to Sec. 54.315 of this chapter.
    (3) Within a given zone, Multi-line Business End User Common Line 
rates cannot fall below Residential and Single-Line Business rates.
    (4) For any given class of customer in any given zone, the End User 
Common Line Charge in that zone must be greater than or equal to the End 
User Common Line charge in the zone with the next lower cost per line.
    (5) A non-price cap local exchange carrier shall not receive more 
through deaveraged End User Common Line charges than it would have 
received if it had not deaveraged its End User Common Line charges.
    (6) Maximum charge. The maximum zone deaveraged End User Common Line 
Charge that may be charged in

[[Page 380]]

any zone is the applicable cap specified in paragraphs (n) or (o) of 
this section.
    (7) Voluntary Reductions. A ``Voluntary Reduction'' is one in which 
the non-price cap local exchange carrier charges End User Common Line 
rates below the maximum charges specified in paragraphs (n)(1) or (o)(1) 
of this section other than through offset of net increases in End User 
Common Line charge revenues or through increases in other zone 
deaveraged End User Common Line charges.

[48 FR 10358, Mar. 11, 1983, as amended at 48 FR 43018, Sept. 21, 1983; 
52 FR 21540, June 8, 1987; 53 FR 28395, July 28, 1988; 61 FR 65364, Dec. 
12, 1996; 62 FR 31933, June 11, 1997; 62 FR 32962, June 17, 1997; 66 FR 
59730, Nov. 30, 2001]



Sec. 69.105  Carrier common line for non-price cap local exchange carriers.

    (a) This section is applicable only to local exchange carriers that 
are not subject to price cap regulation as that term is defined in 
Sec. 61.3(ee) of this chapter. Until June 30, 2003, a charge that is 
expressed in dollars and cents per line per access minute of use shall 
be assessed upon all interexchange carriers that use local exchange 
common line facilities for the provision of interstate or foreign 
telecommunications services, except that the charge shall not be 
assessed upon interexchange carriers to the extent they resell MTS or 
MTS-type services of other common carriers (OCCs).
    (b)(1) For purposes of this section and Sec. 69.113:
    (i) A carrier or other person shall be deemed to receive premium 
access if access is provided through a local exchange switch that has 
the capability to provide access for an MTS-WATS equivalent service that 
is substantially equivalent to the access provided for MTS or WATS, 
except that access provided for an MTS-WATS equivalent service that does 
not use such capability shall not be deemed to be premium access until 
six months after the carrier that provides such MTS-WATS equivalent 
service receives actual notice that such equivalent access is or will be 
available at such switch;
    (ii) The term open end of a call describes the origination or 
termination of a call that utilizes exchange carrier common line plant 
(a call can have no, one, or two open ends); and
    (iii) All open end minutes on calls with one open end (e.g., an 800 
or FX call) shall be treated as terminating minutes.
    (2) For association Carrier Common Line tariff participants:
    (i) The premium originating Carrier Common Line charge shall be one 
cent per minute, except as described in Sec. 69.105(b)(3), and
    (ii) The premium terminating Carrier Common Line charge shall be 
computed as follows:
    (A) For each telephone company subject to price cap regulation, 
multiply the company's proposed premium originating rate by a number 
equal to the sum of the premium originating base period minutes and a 
number equal to 0.45 multiplied by the non-premium originating base 
period minutes of that telephone company;
    (B) For each telephone company subject to price cap regulation, 
multiply the company's proposed premium terminating rate by a number 
equal to the sum of the premium terminating base period minutes and a 
number equal to 0.45 multiplied by the non-premium terminating base 
period minutes of that telephone company;
    (C) Sum the numbers computed in paragraphs (b)(2)(ii) (A) and (B) of 
this section for all companies subject to price cap regulation;
    (D) From the number computed in paragraph (b)(2)(ii)(C) of this 
section, subtract a number equal to one cent times the sum of the 
premium originating base period minutes and a number equal to 0.45 
multiplied by the non-premium originating base period minutes of all 
telephone companies subject to price cap regulation, and;
    (E) Divide the number computed in paragraph (b)(2)(ii)(D) of this 
section by the sum of the premium terminating base period minutes and a 
number equal to 0.45 multiplied by the non-premium terminating base 
period minutes of all telephone companies subject to price cap 
regulation.
    (3) If the calculations described in Sec. 69.105(b)(2) result in a 
per minute charge on premium terminating minutes that is less than once 
cent, both

[[Page 381]]

the originating and terminating premium charges for the association CCL 
tariff participants shall be computed by dividing the number computed in 
paragraph (b)(2)(ii)(C) of this section by a number equal to the sum of 
the premium originating and terminating base period minutes and a number 
equal to 0.45 multiplied by the sum of the non-premium originating and 
terminating base period minutes of all telephone companies subject to 
price cap regulation.
    (4) The Carrier Common Line charges of telephone companies that are 
not association Carrier Common Line tariff participants shall be 
computed at the level of Carrier Common Line access element aggregation 
selected by such telephone companies pursuant to Sec. 69.3(e)(7). For 
each such Carrier Common Line access element tariff--
    (i) The premium originating Carrier Common Line charge shall be one 
cent per minute, and
    (ii) The premium terminating Carrier Common Line charge shall be 
computed by subtracting the projected revenues generated by the 
originating Carrier Common Line charges (both premium and non-premium) 
from the Carrier Common Line revenue requirement for the companies 
participating in that tariff, and dividing the remainder by the sum of 
the projected premium terminating minutes and a number equal to .45 
multiplied by the projected non-premium terminating minutes for such 
companies.
    (5) If the calculations described in Sec. 69.105(b)(4) result in a 
per minute charge on premium terminating minutes that is less than one 
cent, both the originating and terminating premium charges for the 
companies participating in said Carrier Common Line tariff shall be 
computed by dividing the projected Carrier Common Line revenue 
requirement for such companies by the sum of the projected premium 
minutes and a number equal to .45 multiplied by the projected non-
premium minutes for such companies.
    (6) Telephone companies that are not association Carrier Common Line 
tariff participants shall submit to the Commission and to the 
association whatever data the Commission shall determine are necessary 
to calculate the charges described in this section.
    (c) Any interexchange carrier shall receive a credit for Carrier 
Common Line charges to the extent that it resells services for which 
these charges have already been assessed (e.g., MTS or MTS-type service 
of other common carriers).
    (d) From July 1, 2002, to June 30, 2003, the carrier common line 
charge calculations pursuant to this section shall be limited to an 
amount equal to the number of projected residential and single-line 
business lines multiplied by the difference between the residential and 
single-line business End User Common Line rate cap and the lesser of 
$6.50 or the non-price cap local exchange carrier's average cost per 
line.

[51 FR 10841, Mar. 31, 1986, as amended at 52 FR 21541, June 8, 1987; 54 
FR 6293, Feb. 9, 1989; 55 FR 42386, Oct. 19, 1990; 56 FR 21618, May 10, 
1991; 62 FR 31933, June 11, 1997; 66 FR 59731, Nov. 30, 2001]



Sec. 69.106  Local switching.

    (a) Except as provided in Sec. 69.118, charges that are expressed in 
dollars and cents per access minute of use shall be assessed by local 
exchange carriers that are not subject to price cap regulation upon all 
interexchange carriers that use local exchange switching facilities for 
the provision of interstate or foreign services.
    (b) The per minute charge described in paragraph (a) of this section 
shall be computed by dividing the projected annual revenue requirement 
for the Local Switching element, excluding any local switching support 
received by the carrier pursuant to Sec. 54.301 of this chapter, by the 
projected annual access minutes of use for all interstate or foreign 
services that use local exchange switching facilities.
    (c) If end users of an interstate or foreign service that uses local 
switching facilities pay message unit charges for such calls in a 
particular exchange, a credit shall be deducted from the Local Switching 
element charges to such carrier for access service in such exchange. The 
per minute credit for each such exchange shall be multiplied by the 
monthly access minutes for such service to compute the monthly credit to 
such a carrier.

[[Page 382]]

    (d) If all local exchange subscribers in such exchange pay message 
unit charges, the per minute credit described in paragraph (c) of this 
section shall be computed by dividing total message unit charges to all 
subscribers in a particular exchange in a representative month by the 
total minutes of use that were measured for purposes of computing 
message unit charges in such month.
    (e) If some local exchange subscribers pay message unit charges and 
some do not, a per minute credit described in paragraph (c) of this 
section shall be computed by multiplying a credit computed pursuant to 
paragraph (d) of this section by a factor that is equal to total minutes 
measured in such month for purposes of computing message unit charges 
divided by the total local exchange minutes in such month.
    (f) Except as provided in Sec. 69.118, price cap local exchange 
carriers shall establish rate elements for local switching as follows:
    (1) Price cap local exchange carriers shall separate from the 
projected annual revenues for the Local Switching element those costs 
projected to be incurred for ports (including cards and DS1/voice-grade 
multiplexers required to access end offices equipped with analog 
switches) on the trunk side of the local switch. Price cap local 
exchange carriers shall further identify costs incurred for dedicated 
trunk ports separately from costs incurred for shared trunk ports.
    (i) Price cap local exchange carriers shall recover dedicated trunk 
port costs identified pursuant to paragraph (f)(1) of this section 
through flat-rated charges expressed in dollars and cents per trunk port 
and assessed upon the purchaser of the dedicated trunk terminating at 
the port.
    (ii) Price cap local exchange carriers shall recover shared trunk 
port costs identified pursuant to paragraph (f)(1) of this section 
through charges assessed upon purchasers of shared transport. This 
charge shall be expressed in dollars and cents per access minute of use. 
The charge shall be computed by dividing the projected costs of the 
shared ports by the historical annual access minutes of use calculated 
for purposes of recovery of common transport costs in Sec. 69.111(c).
    (2) Price cap local exchange carriers shall recover the projected 
annual revenues for the Local Switching element that are not recovered 
in paragraph (f)(1) of this section through charges that are expressed 
in dollars and cents per access minute of use and assessed upon all 
interexchange carriers that use local exchange switching facilities for 
the provision of interstate or foreign services. The maximum charge 
shall be computed by dividing the projected remainder of the annual 
revenues for the Local Switching element by the historical annual access 
minutes of use for all interstate or foreign services that use local 
exchange switching facilities.
    (g) A local exchange carrier may recover signaling costs associated 
with call setup through a call setup charge imposed upon all interstate 
interexchange carriers that use that local exchange carrier's facilities 
to originate or terminate interstate interexchange or foreign services. 
This charge must be expressed as dollars and cents per call attempt and 
may be assessed on originating calls handed off to the interexchange 
carrier's point of presence and on terminating calls received from an 
interexchange carrier's point of presence, whether or not that call is 
completed at the called location. Local exchange carriers may not 
recover through this charge any costs recovered through other rate 
elements.
    (h) Except as provided in Sec. 69.118, non-price cap local exchange 
carriers may establish rate elements for local switching as follows:
    (1) Non-price cap local exchange carriers may separate from the 
projected annual revenue requirement for the Local Switching element 
those costs projected to be incurred for ports (including cards and DS1/
voice-grade multiplexers required to access end offices equipped with 
analog switches) on the trunk side of the local switch. Non-price cap 
local exchange carriers electing to assess these charges shall further 
identify costs incurred for dedicated trunk ports separately from costs 
incurred for shared trunk ports.
    (i) Non-price cap local exchange carriers electing to assess trunk 
port

[[Page 383]]

charges shall recover dedicated trunk port costs identified pursuant to 
paragraph (h)(1) of this section through flat-rated charges expressed in 
dollars and cents per trunk port and assessed upon the purchaser of the 
dedicated trunk terminating at the port.
    (ii) Non-price cap local exchange carriers electing to assess trunk 
port charges shall recover shared trunk port costs identified pursuant 
to paragraph (h)(1) of this section through charges assessed upon 
purchasers of shared transport. This charge shall be expressed in 
dollars and cents per access minute of use. The charge shall be computed 
by dividing the projected costs of the shared ports by the historical 
annual access minutes of use calculated for purposes of recovery of 
common transport costs in Sec. 69.111(c).
    (2) Non-price cap local exchange carriers shall recover the 
projected annual revenue requirement for the Local Switching element 
that are not recovered in paragraph (h)(1) of this section through 
charges that are expressed in dollars and cents per access minute of use 
and assessed upon all interexchange carriers that use local exchange 
switching facilities for the provision of interstate or foreign 
services. The maximum charge shall be computed by dividing the projected 
remainder of the annual revenue requirement for the Local Switching 
element by the historical annual access minutes of use for all 
interstate or foreign services that use local exchange switching 
facilities.

[52 FR 37310, Oct. 6, 1987, as amended at 56 FR 33881, July 24, 1991; 62 
FR 31933, June 11, 1997; 62 FR 40463, July 29, 1997; 66 FR 59731, Nov. 
30, 2001]



Sec. 69.108  Transport rate benchmark.

    (a) For transport charges computed in accordance with this subpart, 
the DS3-to-DS1 benchmark ratio shall be calculated as follows: the 
telephone company shall calculate the ratio of:
    (1) The total charge for a 1.609 km (1 mi) channel termination, 
16.09 km (10 mi) of interoffice transmission, and one DS3 multiplexer 
using the telephone company's DS3 special access rates to;
    (2) The total charge for a 1.609 km (1 mi) channel termination plus 
16.09 km (10 mi) of interoffice transmission using the telephone 
company's DS1 special access rates.
    (b) Initial transport rates will generally be presumed reasonable if 
they are based on special access rates with a DS3-to-DS1 benchmark ratio 
of 9.6 to 1 or higher.
    (c) If a telephone company's initial transport rates are based on 
special access rates with a DS3-to-DS1 benchmark ratio of less than 9.6 
to 1, those initial transport rates will generally be suspended and 
investigated absent a substantial cause showing by the telephone 
company. Alternatively, the telephone company may adjust its initial 
transport rates so that the DS3-to-DS1 ratio calculated as described in 
paragraph (a) of this section of those rates is 9.6 or higher. In that 
case, initial transport rates that depart from existing special access 
rates effective on September 1, 1992 so as to be consistent with the 
benchmark will be presumed reasonable only so long as the ratio of 
revenue recovered through the interconnection charge to the revenue 
recovered through facilities-based charges is the same as it would be if 
the telephone company's existing special access rates effective on 
September 1, 1992 were used.

[58 FR 41189, Aug. 3, 1993, as amended at 58 FR 44952, Aug. 25, 1993; 58 
FR 45267, Aug. 27, 1993]



Sec. 69.109  Information.

    (a) A charge shall be assessed upon all interexchange carriers that 
are connected to assistance boards through interexchange directory 
assistance trunks.
    (b) Except as provided in Sec. 69.118, if such connections are 
maintained exclusively by carriers that offer MTS, the projected annual 
revenue requirement for the Information element shall be divided by 12 
to compute the monthly assessment to such carriers.
    (c) If such connections are provided to additional carriers, charges 
shall be established that reflect the relative use of such directory 
assistance service by such interexchange carriers.

[48 FR 10358, Mar. 11, 1983, as amended at 56 FR 33881, July 24, 1991]

[[Page 384]]



Sec. 69.110  Entrance facilities.

    (a) A flat-rated entrance facilities charge expressed in dollars and 
cents per unit of capacity shall be assessed upon all interexchange 
carriers and other persons that use telephone company facilities between 
the interexchange carrier or other person's point of demarcation and the 
serving wire center.
    (b)(1) For telephone companies subject to price cap regulation, 
initial entrance facilities charges based on special access channel 
termination rates for equivalent voice grade, DS1, and DS3 services as 
of September 1, 1992, adjusted for changes in the price cap index 
calculated for the July 1, 1993 annual filing for telephone companies 
subject to price cap regulation, generally shall be presumed reasonable 
if the benchmark defined in Sec. 69.108 is satisfied. Entrance 
facilities charges may be distance-sensitive. Distance shall be measured 
as airline kilometers between the point of demarcation and the serving 
wire center.
    (2) For telephone companies not subject to price cap regulation, 
entrance facilities charges based on special access channel termination 
rates for equivalent voice grade, DS1, and DS3 services generally shall 
be presumed reasonable if the benchmark defined in Sec. 69.108 is 
satisfied. Entrance facilities charges may be distance-sensitive. 
Distance shall be measured as airline kilometers between the point of 
demarcation and the serving wire center.
    (c) If the telephone company employs distance-sensitive rates:
    (1) A distance-sensitive component shall be assessed for use of the 
transmission facilities, including any intermediate transmission circuit 
equipment between the end points of the entrance facilities; and
    (2) A nondistance-sensitive component shall be assessed for use of 
the circuit equipment at the ends of the transmission links.
    (d) Telephone companies shall apply only their shortest term special 
access rates in setting entrance facilities charges.
    (e) Except as provided in paragraphs (f), (g), and (h) of this 
section, and subpart H of this part, telephone companies shall not offer 
entrance facilities based on term discounts or volume discounts for 
multiple DS3s or any other service with higher volume than DS3.
    (f) Except in the situations set forth in paragraphs (g) and (h) of 
this section, telephone companies may offer term and volume discounts in 
entrance facilities charges within each study area used for the purpose 
of jurisdictional separations, in which interconnectors have taken 
either:
    (1) At least 100 DS1-equivalent cross-connects for the transmission 
of switched traffic (as described in Sec. 69.121(a)(1) of this chapter) 
in offices in the study area that the telephone company has assigned to 
the lowest priced density pricing zone (zone 1) under an approved 
density pricing zone plan as described in Secs. 61.38(b)(4) and 61.49(k) 
of this chapter; or
    (2) An average of at least 25 DS1-equivalent cross-connects for the 
transmission of switched traffic per office assigned to the lowest 
priced density pricing zone (zone 1).
    (g) In study areas in which the telephone company has implemented 
density zone pricing, but no offices have been assigned to the lowest 
price density pricing zone (zone 1), telephone companies may offer term 
and volume discounts in entrance facilities charges within the study 
area when interconnectors have taken at least 5 DS1-equivalent cross-
connects for the transmission of switched traffic (as described in 
Sec. 69.121(a)(1) of this chapter) in offices in the study area.
    (h) In study areas in which the telephone company has not 
implemented density zone pricing, telephone companies may offer term and 
volume discounts in entrance facilities charges when interconnectors 
have taken at least 100 DS1-equivalent cross-connects for the 
transmission of switched traffic (as described in Sec. 69.121(a)(1) of 
this chapter) in offices in the study area.

[57 FR 54720, Nov. 20, 1992, as amended at 58 FR 41190 and 41191, Aug. 
3, 1993; 58 FR 44950, Aug. 25, 1993; 58 FR 48763, Sept. 17, 1993; 59 FR 
10304, Mar. 4, 1994; 60 FR 50121, Sept. 28, 1995; 64 FR 51267, Sept. 22, 
1999]

[[Page 385]]



Sec. 69.111  Tandem-switched transport and tandem charge.

    (a)(1) Through June 30, 1998, except as provided in paragraph (l) of 
this section, tandem-switched transport shall consist of two rate 
elements, a transmission charge and a tandem switching charge.
    (2) Beginning July 1, 1998, except as provided in paragraph (l) of 
this section, tandem-switched transport shall consist of three rate 
elements as follows:
    (i) A per-minute charge for transport of traffic over common 
transport facilities between the incumbent local exchange carrier's end 
office and the tandem switching office. This charge shall be expressed 
in dollars and cents per access minute of use and shall be assessed upon 
all purchasers of common transport facilities between the local exchange 
carrier's end office and the tandem switching office.
    (ii) A per-minute tandem switching charge. This tandem switching 
charge shall be set in accordance with paragraph (g) of this section, 
excluding multiplexer and dedicated port costs recovered in accordance 
with paragraph (l) of this section, and shall be assessed upon all 
interexchange carriers and other persons that use incumbent local 
exchange carrier tandem switching facilities.
    (iii) A flat-rated charge for transport of traffic over dedicated 
transport facilities between the serving wire center and the tandem 
switching office. This charge shall be assessed as a charge for 
dedicated transport facilities provisioned between the serving wire 
center and the tandem switching office in accordance with Sec. 69.112.
    (b) [Reserved]
    (c)(1) Until June 30, 1998:
    (i) Except in study areas where the incumbent local exchange carrier 
has implemented density pricing zones as described in section 69.123, 
per-minute common transport charges described in paragraph (a)(1) of 
this section shall be presumed reasonable if the incumbent local 
exchange carrier bases the charges on a weighted per-minute equivalent 
of direct-trunked transport DS1 and DS3 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 the total actual voice-
grade minutes of use, geographically averaged on a study-area-wide 
basis, that the incumbent local exchange carrier experiences based on 
the prior year's annual use. Tandem-switched transport transmission 
charges that are not presumed reasonable shall be suspended and 
investigated absent a substantial cause showing by the incumbent local 
exchange carrier.
    (ii) In study areas where the incumbent local exchange carrier has 
implemented density pricing zones as described in section 69.123, per-
minute common transport charges described in paragraph (a)(1) of this 
section shall be presumed reasonable if the incumbent local exchange 
carrier bases the charges on a weighted per-minute equivalent of direct-
trunked transport DS1 and DS3 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 the total actual voice-grade 
minutes of use, averaged on a zone-wide basis, that the incumbent local 
exchange carrier experiences based on the prior year's annual use. 
Tandem-switched transport transmission charges that are not presumed 
reasonable shall be suspended and investigated absent a substantial 
cause showing by the incumbent local exchange carrier.
    (2) Beginning July 1, 1998:
    (i) Except in study areas where the incumbent local exchange carrier 
has implemented density pricing zones as described in section 69.123, 
per-minute common transport charges described in paragraph (a)(2)(i) of 
this section shall be presumed reasonable if the incumbent local 
exchange carrier bases the charges on a weighted per-minute equivalent 
of direct-trunked transport DS1 and DS3 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 the total actual voice-
grade minutes of use, geographically averaged on a

[[Page 386]]

study-area-wide basis, that the incumbent local exchange carrier 
experiences based on the prior year's annual use. Tandem-switched 
transport transmission charges that are not presumed reasonable shall be 
suspended and investigated absent a substantial cause showing by the 
incumbent local exchange carrier.
    (ii) In study areas where the incumbent local exchange carrier has 
implemented density pricing zones as described in section 69.123, per-
minute common transport charges described in paragraph (a)(2)(i) of this 
section shall be presumed reasonable if the incumbent local exchange 
carrier bases the charges on a weighted per-minute equivalent of direct-
trunked transport DS1 and DS3 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 the total actual voice-grade 
minutes of use, averaged on a zone-wide basis, that the incumbent local 
exchange carrier experiences based on the prior year's annual use. 
Tandem-switched transport transmission charges that are not presumed 
reasonable shall be suspended and investigated absent a substantial 
cause showing by the incumbent local exchange carrier.
    (d)(1) Through June 30, 1998, the tandem-switched transport 
transmission charges may be distance-sensitive. Distance shall be 
measured as airline distance between the serving wire center and the end 
office, unless the customer has ordered tandem-switched transport 
between the tandem office and the end office, in which case distance 
shall be measured as airline distance between the tandem office and the 
end office.
    (2) Beginning July 1, 1998, the per-minute charge for transport of 
traffic over common transport facilities described in paragraph 
(a)(2)(i) of this section may be distance-sensitive. Distance shall be 
measured as airline distance between the tandem switching office and the 
end office.
    (e)(1) Through June 30, 1998, if the telephone company employs 
distance-sensitive rates:
    (i) A distance-sensitive component shall be assessed for use of the 
transmission facilities, including intermediate transmission circuit 
equipment between the end points of the interoffice circuit; and
    (ii) A non-distance-sensitive component shall be assessed for use of 
the circuit equipment at the ends of the interoffice transmission links.
    (2) Beginning July 1, 1998, if the telephone company employs 
distance-sensitive rates for transport of traffic over common transport 
facilities, as described in paragraph (a)(2)(i) of this section:
    (i) A distance-sensitive component shall be assessed for use of the 
common transport facilities, including intermediate transmission circuit 
equipment between the end office and tandem switching office; and
    (ii) A non-distance-sensitive component shall be assessed for use of 
the circuit equipment at the ends of the interoffice transmission links.
    (f) [Reserved]
    (g)(1) The tandem switching charge imposed pursuant to paragraphs 
(a)(1) or (a)(2)(ii) of this section, as applicable, shall be set to 
recover twenty percent of the annual part 69 interstate tandem revenue 
requirement plus one third of the portion of the tandem switching 
revenue requirement being recovered through the interconnection charge 
recovered by Secs. 69.124, 69.153, and 69.155, excluding multiplexer and 
dedicated port costs recovered in accordance with paragraph (l) of this 
section.
    (2) Beginning January 1, 1999, the tandem switching charge imposed 
pursuant to paragraph (a)(2)(ii) of this section shall be set to recover 
the amount prescribed in paragraph (g)(1) of this section plus one half 
of the remaining portion of the tandem switching revenue requirement 
then being recovered through the interconnection charge recovered by 
Secs. 69.124, 69.153, and 69.155, excluding multiplexer and dedicated 
port costs recovered in accordance with paragraph (l) of this section.
    (3) Beginning January 1, 2000, the tandem switching charge imposed 
pursuant to paragraph (a)(2)(ii) of this section shall be set to recover 
the entire interstate tandem switching revenue requirement, including 
that portion formerly recovered through the interconnection charge 
recovered in

[[Page 387]]

Sec. Sec. 69.124, 69.153, and 69.155, and excluding multiplexer and 
dedicated port costs recovered in accordance with paragraph (l) of this 
section.
    (4) A local exchange carrier that is subject to price cap regulation 
as that term is defined in Sec. 61.3(x) of this chapter shall calculate 
its tandem switching revenue requirement as used in this paragraph by 
dividing the tandem switching revenue requirement that was included in 
the original interconnection charge by the original interconnection 
charge, and then multiplying this result by the annual revenues 
recovered through the interconnection charge, described in Sec. 69.124, 
as of June 30, 1997. A local exchange carrier that is subject to price 
cap regulation as that term is defined in Sec. 61.3(x) of this chapter 
shall then make downward exogenous adjustments to the service band index 
for the interconnection charge service category (defined in 
Sec. 61.42(e)(2)(vi) of this chapter) and corresponding upward 
adjustments to the service band index for the tandem-switched transport 
service category (defined in Sec. 61.42(e)(2)(v) of this chapter) at the 
times and in the amounts prescribed in paragraphs (g)(1) through (g)(3) 
of this section .
    (h) All telephone companies shall provide tandem-switched transport 
service.
    (i) Except in the situations set forth in paragraphs (j) and (k) of 
this section, telephone companies may offer term and volume discounts in 
tandem-switched transport charges within each study area used for the 
purpose of jurisdictional separations, in which interconnectors have 
taken either:
    (1) At least 100 DS1-equivalent cross-connects for the transmission 
of switched traffic (as described in Sec. 69.121(a)(1) of this chapter) 
in offices in the study area that the telephone company has assigned to 
the lowest priced density pricing zone (zone 1) under an approved 
density pricing zone plan as described in Secs. 61.38(b)(4) and 61.49(k) 
of this chapter; or
    (2) An average of at least 25 DS1-equivalent cross-connects for the 
transmission of switched traffic per office assigned to the lowest 
priced density pricing zone (zone 1).
    (j) In study areas in which the telephone company has implemented 
density zone pricing, but no offices have been assigned to the lowest 
priced density pricing zone (zone 1), telephone companies may offer term 
and volume discounts in tandem-switched transport charges within the 
study area when interconnectors have taken at least 5 DS1-equivalent 
cross-connects for the transmission of switched traffic (as described in 
Sec. 69.121(a)(1) of this chapter) in offices in the study area.
    (k) In study areas in which the telephone company has not 
implemented density zone pricing, telephone companies may offer term and 
volume discounts in tandem-switched transport charges when 
interconnectors have taken at least 100 DS1-equivalent cross-connects 
for the transmission of switched traffic (as described in 
Sec. 69.121(a)(1) of this chapter) in offices in the study area.
    (l) In addition to the charges described in this section, price cap 
local exchange carriers shall establish separate charges for 
multiplexers and dedicated trunk ports used in conjunction with the 
tandem switch as follows:
    (1) Local exchange carriers must establish a traffic-sensitive 
charge for DS3/DS1 multiplexers used on the end office side of the 
tandem switch, assessed on purchasers of common transport to the tandem 
switch. This charge must be expressed in dollars and cents per access 
minute of use. The maximum charge shall be calculated by dividing the 
total costs of the multiplexers on the end office-side of the tandem 
switch by the annual access minutes of use calculated for purposes of 
recovery of common transport costs in paragraph (c) of this section. A 
similar charge shall be assessed for DS1/voice-grade multiplexing 
provided on the end-office side of analog tandem switches.
    (2)(i) Local exchange carriers must establish a flat-rated charge 
for dedicated DS3/DS1 multiplexing on the serving wire center side of 
the tandem switch provided in conjunction with dedicated DS3 transport 
service from the serving wire center to the tandem switch. This charge 
shall be assessed on interexchange carriers purchasing

[[Page 388]]

tandem-switched transport in proportion to the number of DS3 trunks 
provisioned for that interexchange carrier between the serving wire 
center and the tandem-switch.
    (ii) Local exchange carriers must establish a flat-rated charge for 
dedicated DS1/voice-grade multiplexing provided on the serving wire 
center side of analog tandem switches. This charge may be assessed on 
interexchange carriers purchasing tandem-switched transport in 
proportion to the interexchange carrier's transport capacity on the 
serving wire center side of the tandem.
    (3) Price cap local exchange carriers may recover the costs of 
dedicated trunk ports on the serving wire center side of the tandem 
switch only through flat-rated charges expressed in dollars and cents 
per trunk port and assessed upon the purchaser of the dedicated trunk 
terminating at the port.
    (m) In addition to the charges described in this section, non-price 
cap local exchange carriers may establish separate charges for 
multiplexers and dedicated trunk ports used in conjunction with the 
tandem switch as follows:
    (1)(i) Non-price cap local exchange carriers may establish a flat-
rated charge for dedicated DS3/DS1 multiplexing on the serving wire 
center side of the tandem switch provided in conjunction with dedicated 
DS3 transport service from the serving wire center to the tandem switch. 
This charge shall be assessed on interexchange carriers purchasing 
tandem-switched transport in proportion to the number of DS3 trunks 
provisioned for that interexchange carrier between the serving wire 
center and the tandem switch.
    (ii) Non-price cap local exchange carriers may establish a flat-
rated charge for dedicated DS1/voice-grade multiplexing provided on the 
serving wire center side of analog tandem switches. This charge may be 
assessed on interexchange carriers purchasing tandem-switched transport 
in proportion to the interexchange carrier's transport capacity on the 
serving wire center side of the tandem.
    (2) Non-price cap local exchange carriers may recover the costs of 
dedicated trunk ports on the serving wire center side of the tandem 
switch through flat-rated charges expressed in dollars and cents per 
trunk port and assessed upon the purchaser of the dedicated trunk 
terminating at the port.

[57 FR 54720, Nov. 20, 1992, as amended at 58 FR 41190, Aug. 3, 1993; 58 
FR 48764, Sept. 17, 1993; 60 FR 50121, Sept. 28, 1995; 62 FR 31933, June 
11, 1997; 62 FR 40463, July 29, 1997; 62 FR 56132, Oct. 29, 1997; 64 FR 
46594, Aug. 26, 1999; 66 FR 59732, Nov. 30, 2001]



Sec. 69.112  Direct-trunked transport.

    (a) A flat-rated direct-trunked transport charge expressed in 
dollars and cents per unit of capacity shall be assessed upon all 
interexchange carriers and other persons that use telephone company 
direct-trunked transport facilities.
    (b)(1) For telephone companies subject to price cap regulation, 
initial direct-trunked transport charges based on the interoffice 
charges for equivalent voice grade, DS1, and DS3 special access services 
as of September 1, 1992, adjusted for changes in the price cap index 
calculated for the July 1, 1993 annual filing for telephone companies 
subject to price cap regulation, generally shall be presumed reasonable 
if the benchmark defined in Sec. 69.108 is satisfied. Direct-trunked 
transport charges may be distance-sensitive. Distance shall be measured 
as airline kilometers between customer-designated points.
    (2) For telephone companies not subject to price cap regulation, 
initial direct-trunked transport charges based on the interoffice 
charges for equivalent voice grade, DS1, and DS3 special access services 
generally shall be presumed reasonable if the benchmark defined in 
Sec. 69.108 is satisfied. Direct-trunked transport charges may be 
distance-sensitive. Distance shall be measured as airline kilometers 
between customer-designated points.
    (c) If the telephone company employs distance-sensitive rates:
    (1) A distance-sensitive component shall be assessed for use of the 
transmission facilities, including intermediate transmission circuit 
equipment, between the end points of the circuit; and

[[Page 389]]

    (2) A nondistance-sensitive component shall be assessed for use of 
the circuit equipment at the ends of the transmission links.
    (d) Telephone companies shall apply only their shortest term special 
access rates in setting direct-trunked transport rates.
    (e) Except as provided in pagagraphs (f), (g), and (h) of this 
section, telephone companies shall not offer direct-trunked transport 
rates based on term discounts or volume discounts for multiple DS3s or 
any other service with higher volume than DS3.
    (f) Except in the situations set forth in paragraphs (g) and (h) of 
this section, telephone companies may offer term and volume discounts in 
direct-trunked transport charges within each study area used for the 
purpose of jurisdictional separations, in which interconnectors have 
taken either:
    (1) At least 100 DS1-equivalent cross-connects for the transmission 
of switched traffic (as described in Sec. 69.121(a)(1)) in offices in 
the study area that the telephone company has assigned to the lowest 
priced density pricing zone (zone 1) under an approved density pricing 
zone plan as described in Secs. 61.38(b)(4) and 61.49(k) of this 
section; or
    (2) An average of at least 25 DS1-equivalent cross-connects for the 
transmission of switched traffic per office assigned to the lowest 
priced density pricing zone (zone 1).
    (g) In study areas in which the telephone company has implemented 
density zone pricing, but no offices have been assigned to the lowest 
priced density pricing zone (zone 1), telephone companies may offer term 
and volume discounts in direct-trunked transport charges within the 
study area when interconnectors have taken at least 5 DS1-equivalent 
cross-connects for the transmission of switched traffic (as described in 
Sec. 69.121(a)(1) of this chapter) in offices in the study area.
    (h) In study areas in which the telephone company has not 
implemented density zone pricing, telephone companies may offer term and 
volume discounts in direct-trunked transport charges when 
interconnectors have taken at least 100 DS1-equivalent cross-connects 
for the transmission of switched traffic (as described in 
Sec. 69.121(a)(1) of this chapter) in offices in the study area.
    (i) Centralized equal access providers as described in Transport 
Rate Structure and Pricing, CC Docket No. 91-213, FCC 92-442, 7 FCC Rcd 
7002 (1992), are not required to provide direct-trunked transport 
service. Telephone companies that do not have measurement and billing 
capabilities at their end offices are not required to provide direct-
trunked transport services at those end offices without measurement and 
billing capabilities. Telephone companies that are not classified as 
Class A companies under Sec. 32.11 of this chapter are required to 
provide direct-trunked transport service upon request. All other 
telephone companies shall provide a direct-trunked transport service.

[57 FR 54720, Nov. 20, 1992, as amended at 58 FR 41190, Aug. 3, 1993; 58 
FR 44950, Aug. 25, 1993; 58 FR 48764, Sept. 17, 1993; 60 FR 50121, Sept. 
28, 1995]



Sec. 69.113  Non-premium charges for MTS-WATS equivalent services.

    (a) Charges that are computed in accordance with this section shall 
be assessed upon interexchange carriers or other persons that receive 
access that is not deemed to be premium access as this term in defined 
in Sec. 69.105(b)(1) in lieu of carrier charges that are computed in 
accordance with Secs. 69.105, 69.106, 69.118, 69.124, and 69.127.
    (b) The non-premium charge for the Carrier Common Line element shall 
be computed by multiplying the premium charge for such element by .45.
    (c) For telephone companies that are not subject to price cap 
regulation as that term is defined in Sec. 61.3(x) of this chapter, the 
non-premium charge for the Local Switching element shall be computed by 
multiplying a hypothetical premium charge for such element by .45. The 
hypothetical premium charge for such element shall be computed by 
dividing the annual revenue requirement for each element by the sum of 
the projected access minutes for such period and a number that is 
computed by multiplying the projected non-premium minutes for such 
element for such period by .45. For telephone companies that are price 
cap carriers, the non-premium charge for the Local

[[Page 390]]

Switching element shall be computed by multiplying the premium charge 
for such element by .45. Though June 30, 1993, the non-premium charge 
shall be computed by multiplying the LS2 charge for such element by .45.
    (d) The non-premium charge or charges for the interconnection charge 
element shall be computed by multiplying the corresponding premium 
charge or charges by .45.
    (e) The non-premium charge for any BSEs in local switching shall be 
computed by multiplying the premium charge for the corresponding BSEs by 
.45.

[54 FR 6293, Feb. 9, 1989, as amended at 55 FR 42386, Oct. 19, 1990; 55 
FR 50559, Dec. 7, 1990; 56 FR 33881, July 24, 1991; 57 FR 54721, Nov. 
20, 1992; 59 FR 10304, Mar. 4, 1994; 64 FR 46594, Aug. 26, 1999]



Sec. 69.114  Special access.

    (a) Appropriate subelements shall be established for the use of 
equipment or facilities that are assigned to the Special Access element 
for purposes of apportioning net investment, or that are equivalent to 
such equipment or facilities for companies subject to price cap 
regulation as that term is defined in Sec. 61.3(x) of this chapter.
    (b) Charges for all subelements shall be designed to produce total 
annual revenue that is equal to the projected annual revenue requirement 
for the Special Access element.
    (c) Charges for an individual element shall be assessed upon all 
interexchange carriers that use the equipment or facilities that are 
included within such subelement.
    (d) Charges for individual subelements shall be designed to reflect 
cost differences among subelements in a manner that complies with 
applicable Commission rules or decisions.

[48 FR 10358, Mar. 11, 1983, as amended at 48 FR 43019, Sept. 21, 1983. 
Redesignated at 54 FR 6293, Feb. 9, 1989, as amended at 55 FR 42386, 
Oct. 19, 1990; 64 FR 46594, Aug. 26, 1999]



Sec. 69.115  Special access surcharges.

    (a) Pending the development of techniques accurately to measure 
usage of exchange facilities that are interconnected by users with means 
of interstate or foreign telecommunications, a surcharge that is 
expressed in dollars and cents per line termination per month shall be 
assessed upon users that subscribe to private line services or WATS 
services that are not exempt from assessment pursuant to paragraph (e) 
of this section.
    (b) Such surcharge shall be computed to reflect a reasonable 
approximation of the carrier usage charges which, assuming non-premium 
interconnection, would have been paid for average interstate or foreign 
usage of common lines, end office facilities, and transport facilities, 
attributable to each Special Access line termination which is not exempt 
from assessment pursuant to paragraph (e) of this section.
    (c) If the association, carrier or carriers that file the tariff are 
unable to estimate such average usage for a period ending May 31, 1985, 
the surcharge for such period shall be twenty-five dollars ($25) per 
line termination per month. As of June 30, 2000, these rates will remain 
and be capped at the current levels until June 30, 2005.
    (d) A telephone company may propose reasonable and nondiscriminatory 
end user surcharges, to be filed in its federal access tariffs and to be 
applied to the use of exchange facilities which are interconected by 
users with means of interstate or foreign telecommunication which are 
not provided by the telephone company, and which are not exempt from 
assessment pursuant to paragraph (e) of this section. Telephone 
companies which wish to avail themselves of this option must undertake 
to use reasonable efforts to identify such means of interstate or 
foreign telecommunication, and to assess end user surcharges in a 
reasonable and nondiscriminatory manner.
    (e) No special access surcharges shall be assessed for any of the 
following terminations:
    (1) The open end termination in a telephone company switch of an FX 
line, including CCSA and CCSA-equivalent ONALs;
    (2) Any termination of an analog channel that is used for radio or 
television program transmission;
    (3) Any termination of a line that is used for telex service;
    (4) Any termination of a line that by nature of its operating 
characteristics

[[Page 391]]

could not make use of common lines; and
    (5) Any termination of a line that is subject to carrier usage 
charges pursuant to Sec. 69.5.
    (6) Any termination of a line that the customer certifies to the 
exchange carrier is not connected to a PBX or other device capable of 
interconnecting a local exchange subscriber line with the private line 
or WATS access line.

(47 U.S.C. 154 (i) and (j), 201, 202, 203, 205, 218 and 403 and 5 U.S.C. 
553)

[48 FR 43019, Sept. 21, 1983, as amended at 49 FR 7829, Mar. 2, 1984; 51 
FR 10841, Mar. 31, 1986; 52 FR 8259, Mar. 17, 1987; 65 FR 38701, June 
21, 2000]



Sec. 69.116  Universal service fund.

    Effective August 1, 1988 through December 31, 1997:
    (a) A charge that is expressed in dollars and cents per line per 
month shall be assessed upon all interexchange carriers that use local 
exchange switching facilities for the provision of interstate or foreign 
telecommunications services and that have at least .05 percent of the 
total common lines presubscribed to interexchange carriers in all study 
areas.
    (b) The charge shall be computed by the association on a semi-annual 
basis by dividing one-twelfth of the projected annual Universal Service 
Fund revenue requirement by the total number of common lines 
presubscribed to interexchange carriers defined in Sec. 69.116(a). 
Beginning on April 1, 1989, the association shall bill and collect the 
charge, and disburse associated revenue, on a monthly basis pursuant to 
Sec. 69.603(c).
    (c) Telephone companies shall provide the association the data 
necessary to compute the charge. These data shall include the number of 
presubscribed common lines in each study area and the number of those 
lines associated with each interexchange carrier serving that study 
area. In a study area served by a single interexchange carrier, all 
common lines shall be considered as presubscribed to that interexchange 
carrier. Information concerning presubscribed common lines shall be 
filed with the association on June 30 and December 30 of each year, 
except for the first such submission, containing presubscribed common 
line data calculated as of December 31, 1987, which shall be filed on 
August 1, 1988. Presubscribed common line data filed on June 30 shall be 
calculated as of December 31 of the preceding year, and presubscribed 
common line data filed on December 30 shall be calculated as of June 30 
of the same year.

[53 FR 28396, July 28, 1988, as amended at 54 FR 50624, Dec. 8, 1989; 62 
FR 32962, June 17, 1997]



Sec. 69.117  Lifeline assistance.

    Effective August 1, 1988 through December 31, 1997
    (a) A charge that is expressed in dollars and cents per line per 
month shall be assessed upon all interexchange carriers that use local 
exchange switching facilities for the provision of interstate or foreign 
telecommunications services and that have at least .05 percent of the 
total common lines presubscribed to interexchange carriers in all study 
areas.
    (b) The charge shall be computed by the association on a semi-annual 
basis by dividing the sum of one-twelfth of the projected annual 
Lifeline Assistance revenue requirement and one-twelfth of the projected 
annual revenue requirement calculated by all telephone companies 
pursuant to Sec. 69.104(l) by the number of common lines presubscribed 
to interexchange carriers defined in Sec. 69.117(a). Beginning on April 
1, 1989, the association shall bill and collect the charge, and disburse 
associated revenue, on a monthly basis pursuant to Sec. 69.603(d).
    (c) Telephone companies shall provide to the association the data 
necessary to compute the charge. These data shall include the number of 
presubscribed common lines in each study area and the number of those 
lines associated with each interexchange carrier serving that study 
area. In a study area served by a single interexchange carrier, all 
common lines shall be considered as presubscribed to that interexchange 
carrier. Information concerning presubscribed common lines shall be 
filed with the association on June 30 and December 30 of each year, 
except

[[Page 392]]

for the first such submission, containing presubscribed common line data 
calculated as of December 31, 1987, which shall be filed on August 1, 
1988. Presubscribed common line data filed on June 30 shall be 
calculated as of December 31 of the preceding year, and presubscribed 
common line data filed on December 30 shall be calculated as of June 30 
of the same year.

[53 FR 28396, July 28, 1988, as amended at 54 FR 50624, Dec. 8, 1989; 62 
FR 32962, June 17, 1997]



Sec. 69.118  Traffic sensitive switched services.

    Notwithstanding Secs. 69.4(b), 69.106, 69.109, 69.110, 69.111, 
69.112, and 69.124, telephone companies subject to the BOC ONA Order, 4 
FCC Rcd 1 (1988) shall, and other telephone companies may, establish 
approved Basic Service Elements as provided in Amendments of part 69 of 
the Commission's rules relating to the Creation of Access Charge 
Subelements for Open Network Architecture, Report and Order, 6 FCC Rcd 
4524 (1991) and 800 data base subelements, as provided in Provision of 
Access for 800 Service, 8 FCC Rcd --------, CC Docket 86-10, FCC 93-53 
(1993). Moreover, all customers that use basic 800 database service 
shall be assessed a charge that is expressed in dollars and cents per 
query. Telephone companies shall take into account revenues from the 
relevant Basic Service Element or Elements and 800 Database Service 
Elements in computing rates for the Local Switching, Entrance 
Facilities, Tandem-Switched Transport, Direct-Trunked Transport, 
Interconnection Charge, and/or Information elements.

[58 FR 7868, Feb. 10, 1993]



Sec. 69.119  Basic service element expedited approval process.

    The rules for filing comments and reply comments on requests for 
expedited approval of new basic service elements are those indicated in 
Sec. 1.45 of the rules, except as specified otherwise.

[56 FR 33881, July 24, 1991]



Sec. 69.120  Line information database.

    (a) A charge that is expressed in dollars and cents per query shall 
be assessed upon all carriers that access validation information from a 
local exchange carrier database to recover the costs of:
    (1) The transmission facilities between the local exchange carrier's 
signalling transfer point and the database; and
    (2) The signalling transfer point facilities dedicated to the 
termination of the transmission facilities connecting the database to 
the exchange carrier's signalling network.
    (b) A charge that is expressed in dollars and cents per query shall 
be assessed upon all carriers that access validation information from a 
local exchange carrier line information database to recover the costs of 
the database.

[57 FR 24380, June 9, 1992]



Sec. 69.121  Connection charges for expanded interconnection.

    (a) Appropriate connection charge subelements shall be established 
for the use of equipment and facilities that are associated with 
offerings of expanded interconnection for special access and switched 
transport services, as defined in part 64, subpart N of this chapter. To 
the extent that the same equipment and facilities are used to provide 
expanded interconnection for both special access and switched transport, 
the same connection charge subelements shall be used.
    (1) A cross-connect subelement shall be established for charges 
associated with the cross-connect cable and associated facilities 
connecting the equipment owned by or dedicated to the use of the 
interconnector with the telephone company's equipment and facilities 
used to provide interstate special or switched access services. Charges 
for the cross-connect subelement shall not be deaveraged within a study 
area that is used for purposes of jurisdictional separations.
    (2) Charges for subelements associated with physical collocation or 
virtual collocation, other than the subelement described in paragraph 
(a)(1) of this section and subelements recovering the cost of the 
virtual collocation equipment described in Sec. 64.1401(e)(1) of this 
chapter, may reasonably differ in different central offices, 
notwithstanding Sec. 69.3(e)(7).

[[Page 393]]

    (b) Connection charge subelements shall be computed based upon the 
costs associated with the equipment and facilities that are included in 
such subelements, including no more than a just and reasonable portion 
of the telephone company's overhead costs.
    (c) Connection charge subelements shall be assessed upon all 
interconnectors that use the equipment or facilities that are included 
in such subelements.

[57 FR 54332, Nov. 18, 1992, as amended by 58 FR 48764, Sept. 17, 1993; 
59 FR 38930, Aug. 1, 1994]



Sec. 69.123  Density pricing zones for special access and switched transport.

    (a)(1) Incumbent local exchange carriers not subject to price cap 
regulation may establish a reasonable number of density pricing zones 
within each study area that is used for purposes of jurisdictional 
separations, in which at least one interconnector has taken the 
subelement of connection charges for expanded interconnection described 
in Sec. 69.121(a)(1).
    (2) Such a system of pricing zones shall be designed to reasonably 
reflect cost-related characteristics, such as the density of total 
interstate traffic in central offices located in the respective zones.
    (3) Non-price cap incumbent local exchange carriers may establish 
only one set of density pricing zones within each study area, to be used 
for the pricing of both special and switched access pursuant to 
paragraphs (c) and (d) of this section.
    (b)(1) Incumbent local exchange carriers subject to price cap 
regulation may establish any number of density zones within a study area 
that is used for purposes of jurisdictional separations, provided that 
each zone, except the highest-cost zone, accounts for at least 15 
percent of that carrier's trunking basket revenues within that study 
area, calculated pursuant to the methodology set forth in Sec. 69.725.
    (2) Price cap incumbent local exchange carriers may establish only 
one set of density pricing zones within each study area, to be used for 
the pricing of all services within the trunking basket for which zone 
density pricing is permitted.
    (3) An access service subelement for which zone density pricing is 
permitted shall be deemed to be offered in the zone that contains the 
telephone company location from which the service is provided.
    (4) An access service subelement for which zone density pricing is 
permitted which is provided to a customer between telephone company 
locations shall be deemed to be offered in the highest priced zone that 
contains one of the locations between which the service is offered.
    (c) Notwithstanding Sec. 69.3(e)(7) of this chapter, in study areas 
in which at least one interconnector has taken a cross-connect, as 
described in Sec. 69.121(a)(1) of this chapter, for the transmission of 
interstate special access traffic, telephone companies may charge rates 
for special access subelements of DS1, DS3, and such other special 
access services as the Commission may designate, that differ depending 
on the zone in which the service is offered, provided that the charges 
for any such service shall not be deaveraged within any such zone.
    (1) A special access service subelement shall be deemed to be 
offered in the zone that contains the telephone company location from 
which the service is provided.
    (2) A special access service subelement provided to a customer 
between telephone company locations shall be deemed to be offered in the 
highest priced zone that contains one of the locations between which the 
service is offered.
    (d) Notwithstanding Sec. 69.3(e)(7) of this chapter, in study areas 
in which at least one interconnector has taken a cross-connect, as 
described in Sec. 69.121(a)(1) of this chapter, for the transmission of 
interstate switched traffic, or is using collocated facilities to 
interconnect with telephone company interstate switched transport 
services, telephone companies may charge rates for subelements of 
direct-trunked transport, tandem-switched transport, entrance 
facilities, and dedicated signalling transport that differ depending on 
the zone in which the service is offered, provided that the charge for 
any such service shall not be

[[Page 394]]

deaveraged within any such zone. Telephone companies may not, however, 
charge rates for the interconnection charge that differ depending on the 
zone in which the service is offered.
    (1) A switched transport service subelement shall be deemed to be 
offered in the zone that contains the telephone company location from 
which the service is provided.
    (2) A switched transport service subelement provided to a customer 
between telephone company locations shall be deemed to be offered in the 
highest priced zone that contains either of the locations between which 
the service is offered.
    (e)(1) Telephone companies not subject to price cap regulation may 
charge a rate for each service in the highest priced zone that exceeds 
the rate for the same service in the lowest priced zone by no more than 
fifteen percent of the rate for the service in the lowest priced zone 
during the period from the date that the zones are initially established 
through the following June 30. The difference between the rates for any 
such service in the highest priced zone and the lowest priced zone in a 
study area, measured as a percentage of the rate for the service in the 
lowest priced zone, may increase by no more than an additional fifteen 
percentage points in each succeeding year, measured from the rate 
differential in effect on the last day of the preceding tariff year.
    (2) Notwithstanding Sec. 69.3(e)(7), incumbent local exchange 
carriers subject to price cap regulation may charge different rates for 
services in different zones pursuant to Sec. 61.47(f) of this chapter, 
provided that the charges for any such service are not deaveraged within 
any such zone.
    (f)(1) An incumbent local exchange carrier that establishes density 
pricing zones under this section must reallocate additional amounts 
recovered under the interconnection charge prescribed in Sec. 69.124 of 
this subpart to facilities-based transport rates, to reflect the higher 
costs of serving lower density areas. Each incumbent local exchange 
carrier must reallocate costs from the interexchange charge each time it 
increases the ratio between the prices in its lowest-cost zone and any 
other zone in that study area.
    (2) Any incumbent local exchange carrier that has already deaveraged 
its rates on January 1, 1998 must reallocate an amount equivalent to 
that described in paragraph (f)(1) of this section from the 
interconnection charge prescribed in Sec. 69.124 to its transport 
services.
    (3) Price cap local exchange carriers shall reassign to direct-
trunked transport and tandem-switched transport categories or 
subcategories interconnection charge amounts reallocated under paragraph 
(f)(1) or (f)(2) of this section in a manner that reflects the way 
density pricing zones are being implemented by the incumbent local 
exchange carrier.

[57 FR 54333, Nov. 18, 1992, as amended by 58 FR 48764, Sept. 17, 1993; 
62 FR 31935, June 11, 1997; 64 FR 51267, Sept. 22, 1999]



Sec. 69.124  Interconnection charge.

    (a) Until December 31, 2001, local exchange carriers not subject to 
price cap regulation shall assess an interconnection charge expressed in 
dollars and cents per access minute upon all interexchange carriers and 
upon all other persons using the telephone company switched access 
network.
    (b) If the use made of the local exchange carrier's switched access 
network includes the local switch, but not local transport, the 
interconnection charge assessed pursuant to paragraph (a) of this 
section shall be computed by subtracting entrance facilities, tandem-
switched transport, direct-trunked transport, and dedicated signalling 
transport revenues, as well as any interconnection charge revenues that 
the local exchange carrier anticipates will be reassigned to other, 
facilities-based rate elements in the future, from the part 69 transport 
revenue requirement, and dividing by the total interstate local 
switching minutes.
    (c) If the use made of the local exchange carrier's switched access 
network includes local transport, the interconnection charge to be 
assessed pursuant to paragraph (a) of this section shall be computed by 
dividing any interconnection charge revenues that the local exchange 
carrier anticipates will be reassigned to other, facilities-

[[Page 395]]

based rate elements in the future by the total interstate local 
transport minutes, and adding thereto the per minute amount calculated 
pursuant to paragraph (b) of this section.

[62 FR 66030, Dec. 17, 1997, as amended at 66 FR 59732, Nov. 30, 2001]



Sec. 69.125  Dedicated signalling transport.

    (a) Dedicated signalling transport shall consist of two elements, a 
signalling link charge and a signalling transfer point (STP) port 
termination charge.
    (b)(1) A flat-rated signalling link charge expressed in dollars and 
cents per unit of capacity shall be assessed upon all interexchange 
carriers and other persons that use facilities between an interexchange 
carrier or other person's common channel signalling network and a 
telephone company signalling transfer point or equivalent facilities 
offered by a telephone company. Signalling link charges may be distance-
sensitive. Distance shall be measured as airline kilometers between the 
signalling point of interconnection of the interexchange carrier's or 
other person's common channel signalling network and the telephone 
company's signalling transfer point.
    (2) Signalling link rates will generally be presumed reasonable if 
they are based on the interoffice charges for equivalent special access 
services. Telephone companies that have, before February 18, 1993, 
tariffed a signalling link service for signalling transport between the 
interexchange carrier's or other person's common channel signalling 
network and the telephone company's STP are permitted to use the rates 
that are in place.
    (c) A flat-rated STP port termination charge expressed in dollars 
and cents per port shall be assessed upon all interexchange carriers and 
other persons that use dedicated signalling transport.

[57 FR 54721, Nov. 20, 1992, as amended at 58 FR 41191, Aug. 3, 1993; 58 
FR 44950, Aug. 25, 1993; 62 FR 31935, June 11, 1997]



Sec. 69.126  Nonrecurring charges.

    Incumbent local exchange carriers shall not assess any nonrecurring 
charges for service connection when an interexchange carrier converts 
trunks from tandem-switched transport to direct-trunked transport or 
when an interexchange carrier orders the disconnection of 
overprovisioned trunks, until six months after the effective date of the 
tariffs eliminating the unitary pricing option for tandem-switched 
transport.

[62 FR 31935, June 11, 1997]



Sec. 69.127  Transitional Equal Charge Rule.

    The transport rate structure in effect August 1, 1991, shall be 
retained until the tariffs filed pursuant to the Report and Order in 
Transport Rate Structure and Pricing, CC Docket No. 91-213, FCC 92-442, 
7 FCC Rcd 7006 (1992) become effective.

[57 FR 54722, Nov. 20, 1992]



Sec. 69.128  Billing name and address.

    Appropriate subelements shall be established for the use of 
equipment or facilities that are associated with offerings of billing 
name and address.

[58 FR 36145, July 6, 1993]



Sec. 69.129  Signalling for tandem switching.

    A charge that is expressed in dollars and cents shall be assessed 
upon the purchasing entity by a local telephone company for provision of 
signalling for tandem switching.

[59 FR 32930, June 27, 1994]



Sec. 69.130  Line port costs in excess of basic analog service.

    To the extent that the costs of ISDN line ports, and line ports 
associated with other services, exceed the costs of a line port used for 
basic, analog service, non-price cap local exchange carriers may recover 
the difference through a separate monthly end-user charge, provided that 
no portion of such excess cost may be recovered through other common 
line access charges, or through Interstate Common Line Support.

[66 FR 59732, Nov. 30, 2001]

[[Page 396]]



Sec. 69.131  Universal service end user charges.

    To the extent the company makes contributions to the Universal 
Service Support Mechanisms pursuant to Secs. 54.706 and 54.709 of this 
chapter and the non-price cap local exchange carrier seeks to recover 
some or all of the amount of such contribution, the non-price cap local 
exchange carrier shall recover those contributions through a charge to 
end users other than Lifeline users. The charge to recover these 
contributions is not part of any other element established pursuant to 
part 69. Such a charge may be assessed on a per-line basis or as a 
percentage of interstate retail revenues, and at the option of the local 
exchange carrier it may be combined for billing purposes with other end 
user retail rate elements. A non-price cap local exchange carrier opting 
to assess the Universal Service end-user rate element on a per-line 
basis may apply that charge using the ``equivalency'' relationships 
established for the multi-line business PICC for Primary Rate ISDN 
service, as per Sec. 69.153(d), and for Centrex lines, as per 
Sec. 69.153(e).

[66 FR 59732, Nov. 30, 2001]



 Subpart C--Computation of Charges for Price Cap Local Exchange Carriers

    Source: 62 FR 31935, June 11, 1997, unless otherwise noted.



Sec. 69.151  Applicability.

    This subpart shall apply only to telephone companies subject to the 
price cap regulations set forth in part 61 of this chapter.



Sec. 69.152  End user common line for price cap local exchange carriers.

    (a) A charge that is expressed in dollars and cents per line per 
month shall be assessed upon end users that subscribe to local exchange 
telephone service or Centrex service to the extent they do not pay 
carrier common line charges. A charge that is expressed in dollars and 
cents per line per month shall be assessed upon providers of public 
telephones. Such charge shall be assessed for each line between the 
premises of an end user, or public telephone location, and a Class 5 
office that is or may be used for local exchange service transmissions.
    (b) [Reserved]
    (c) The charge for each subscriber line associated with a public 
telephone shall be equal to the monthly charge computed in accordance 
with paragraph (k) of this section.
    (d)(1) Beginning July 1, 2000, in a study area that does not have 
deaveraged End User Common Line Charges, the maximum monthly charge for 
each primary residential or single-line business local exchange service 
subscriber line shall be the lesser of:
    (i) The Average Price Cap CMT Revenue per Line month as defined in 
Sec. 61.3(d) of this chapter; or
    (ii) The following:
    (A) On July 1, 2000, $4.35.
    (B) On July 1, 2001, $5.00.
    (C) On July 1, 2002, $6.00.
    (D) On July 1, 2003, $6.50.
    (2) In the event that GDP-PI exceeds 6.5% or is less than 0%, the 
maximum monthly charge in paragraph (d)(1)(ii) of this section and the 
cap will be adjusted pursuant to Sec. 61.45(b)(1)(iii) of this chapter.
    (e)(1) Beginning July 1, 2000, in a study area that does not have 
deaveraged End User Common Line Charges, the maximum monthly charge for 
each non-primary residential local exchange service subscriber line 
shall be the lesser of:
    (i) $7.00; or
    (ii) The greater of:
    (A) The rate as of June 30, 2000 less reductions needed to ensure 
over recovery of CMT Revenues does not occur; or
    (B) The Average Price Cap CMT Revenue per Line month as defined in 
Sec. 61.3(d) of this chapter.
    (2) In the event that GDP-PI is greater than 6.5% or is less than 
0%, the maximum monthly charge in paragraph (e)(1)(i) of this section 
and the cap will be adjusted pursuant to Sec. 61.45(b)(1)(iii) of this 
chapter.
    (3) Where the local exchange carrier provides a residential line to 
another carrier so that the other carrier may resell that residential 
line to a residence that already receives a primary

[[Page 397]]

residential line, the local exchange carrier may collect the non-primary 
residential charge described in paragraph (e) of this section from the 
other carrier.
    (f) The charge for each primary residential local exchange service 
subscriber line shall be the same as the charge for each single-line 
business local exchange service subscriber line.
    (g) A line shall be deemed to be a residential subscriber line if 
the subscriber pays a rate for such line that is described as a 
residential rate in the local exchange service tariff.
    (h) Effective July 1, 1999, only one of the residential subscriber 
lines a price cap local exchange carrier provides to a location shall be 
deemed to be a primary residential line.
    (1) Effective July 1, 1999, for purposes of Sec. 69.152(h) of this 
chapter, ``residential subscriber line'' includes residential lines that 
a price cap local exchange carrier provides to a competitive local 
exchange carrier that resells the line and on which the price cap local 
exchange carrier may assess access charges.
    (2) Effective July 1, 1999, if a customer subscribes to residential 
lines from a price cap local exchange carrier and at least one reseller 
of the price cap local exchange carrier's lines, the line sold by the 
price cap local exchange carrier shall be the primary line, except that 
if a resold price cap LEC line is already the primary line, the resold 
line will remain the primary line should a price cap local exchange 
carrier subsequently sell an additional line to that residence.
    (i) A line shall be deemed to be a single-line business subscriber 
line if the subscriber pays a rate that is not described as a 
residential rate in the local exchange service tariff and does not 
obtain more than one such line from a particular telephone company.
    (j) No charge shall be assessed for any WATS access line.
    (k)(1) Beginning on July 1, 2000, for any study area that does not 
have deaveraged End User Common Line charges and in the absence of 
voluntary reductions, the maximum monthly End User Common Line Charge 
for multi-line business lines will be the lesser of:
    (i) $9.20; or
    (ii) The greater of:
    (A) The rate as of June 30, 2000, less reductions needed to ensure 
over recovery of CMT Revenues does not occur; or
    (B) The Average Price Cap CMT Revenue per Line month as defined in 
Sec. 61.3(d) of this chapter.
    Note to paragraph (k)(1): Except when the local exchange carrier 
reduces the rate through voluntary reductions, the multi-line business 
End User Common Line charge will be frozen until the study area's multi-
line business PICC and CCL charge are eliminated.
    (2) In the event that GDP-PI is greater than 6.5% or is less than 
0%, the maximum monthly charge in paragraph (k)(1)(i) of this section 
and the cap will be adjusted pursuant to Sec. 61.45(b)(1)(iii) of this 
chapter.
    (l)(1) Beginning January 1, 1998, local exchange carrier shall 
assess no more than one End User Common Line charge as calculated under 
the applicable method under paragraph (e) of this section for Basic Rate 
Interface integrated services digital network (ISDN) service.
    (2) Local exchange carriers shall assess no more than five End User 
Common Line charges as calculated under paragraph (k) of this section 
for Primary Rate Interface ISDN service.
    (m) In the event the local exchange carrier charges less than the 
maximum End User Common Line charge for any subscriber lines, the local 
exchange carrier may not recover the difference between the amount 
collected and the maximum from carrier common line charges or PICCs.
    (n)-(p) [Reserved]
    (q) End User Common Line Charge De-Averaging. Beginning on July 1, 
2000, local exchange carriers may geographically deaverage End User 
Common Line charges subject to the following conditions:
    (1) In order for a price cap local exchange carrier to be allowed to 
de-average End User Common Line charges within a study area, the price 
cap local exchange carrier must have state Commission approved 
geographically deaveraged rates for UNE loops within that study area. 
Except where a LEC geographically deaverages through voluntary 
reductions, before a price cap

[[Page 398]]

local exchange carrier may geographically deaverage its End User Common 
Line rates, its Originating and Terminating CCL and Multi-line Business 
PICC rates in that study area must equal $0.00.
    (2) All geographic deaveraging of End User Common Line charges by 
customer class within a study area must be according to the state 
commission-approved UNE loop zone. Solely for the purposes of 
determining interstate subscriber line charges and the interstate access 
universal service support described in Secs. 54.806 and 54.807 of this 
chapter, a price cap local exchange carrier may not have more than four 
geographic End User Common Line Charge/Universal Service zones absent a 
review by the Commission. Where a price cap local exchange carrier has 
more than four state-created UNE zones and the Commission has not 
approved use of additional zones, the price cap local exchange carrier 
will determine, at its discretion, which state-created UNE zones to 
consolidate so that it has no more than four zones for the purpose of 
determining interstate subscriber line charges and interstate access 
universal service support.
    (3) Within a given zone, Multi-line Business End User Common Line 
rates cannot fall below Primary Residential and Single-Line Business or 
Non-Primary Residential End User Common Line charges. Non-Primary End 
User Common Line charges cannot fall below Primary Residential and 
Single-Line Business charges.
    (4) For any given class of customer in any given zone, the Zone 
deaveraged End User Common Line Charge in that zone must be greater than 
or equal to the Zone deaveraged End User Common Line charge in the zone 
with the next lower Zone Average Revenue Per Line.
    (5) The sum of all revenues per month that would be generated from 
all deaveraged End User Common Line charges in all zones within a study 
area plus Interstate Access Universal Service Support per Line month (as 
defined in Sec. 54.807 of this chapter) for the applicable customer 
classes and zones receiving such support multiplied by corresponding 
base period lines, divided by the number of base period lines in that 
study area cannot exceed Average Price Cap CMT Revenue per Line month as 
defined in Sec. 61.3(d) of this chapter for that study area. In 
addition, the sum of revenues per month that would be generated from all 
deaveraged End User Common Line charges in all End User Common Line 
charge deaveraging zones within a study area plus revenues per month 
from all End User Common Line charge, multi-line business PICC and CCL 
charges from study areas within that study area that have not 
geographically deaveraged End User Common Line charges plus the sum of 
all Interstate Access Universal Service Support per Line month (as 
defined in Sec. 54.807 of this chapter) for the applicable customer 
classes and zones receiving such support, multiplied by the 
corresponding base period lines for the applicable customer classes and 
zones within the study area, divided by the number of total base period 
lines in the study area cannot exceed Average Price Cap CMT Revenue per 
Line month as defined in Sec. 61.3(d) of this chapter for the study 
area.
    (6) Maximum charge. The maximum zone deaveraged End User Common Line 
Charge that may be charged in any zone is the applicable cap specified 
in Sec. 69.152(d)(1), Sec. 69.152(e)(1)(i) or Sec. 69.152 (k)(1)(i) Zone 
Average Revenue Per Line is the Average Price Cap CMT Revenue per Line 
month allocated to a particular state-defined zone used for deaveraging 
of UNE loop prices. The zone average revenue per line is computed 
pursuant to Sec. 61.3 (zz) of this chapter.
    (7) Minimum charge. Except where a local exchange carrier chooses to 
lower the deaveraged End User Common Line charge through voluntary 
reductions, the minimum zone deaveraged End User Common Line charge in 
any zone in a study area is at least the Minimum End User Common Line 
charge. Minimum End User Common Line charge is Zone Average Revenue Per 
Line for the zone with the lowest Zone Average Revenue Per Line in that 
study area plus an amount per line calculated to recover the difference 
between Interstate Access Universal Service Support Per Line (as defined 
in Sec. 54.807 of this chapter) multiplied by

[[Page 399]]

base period lines for the applicable customer class and zones receiving 
such support and Study Area Above Benchmark Revenues, first from Zone 1 
until the End User Common Line charges in Zone 1 equal the End User 
Common Line charges in Zone 2, and then from lines in Zones 1 and 2 
equally until the End User Common Line charges in those Zones reach Zone 
3 (with all End User Common Line charges subject to the applicable 
residential and multi-line business lines nominal caps).
    (i) For the purposes of this part, ``Study Area Above Benchmark 
Revenues'' is the sum of all Zone Above Benchmark Revenues.
    (ii) For the purposes of this part, ``Zone Above Benchmark 
Revenues'' is calculated as follows:
    Zone Above Benchmark Revenues is the sum of Zone Above Benchmark 
Revenues for Residential and Single-line Business lines and Zone Above 
Benchmark Revenues for Multi-line Business lines. Zone Above Benchmark 
Revenues for Residential and Single-line Business lines is, within each 
zone, (Zone Average Revenue Per Line minus $7.00) multiplied by all 
eligible telecommunications carrier Base Period Residential and Single-
line Business lines times 12. If negative, the Zone Above Benchmark 
Revenues for Residential and Single-line Business lines for the zone is 
zero. Zone Above Benchmark Revenues for Multi-line Business lines is, 
within each zone,
    (Zone Average Revenue Per Line minus $9.20) multiplied by all 
eligible telecommunications carrier zone Base Period Multi-line Business 
lines times 12. If negative, the Zone Above Benchmark Revenues for 
Multi-line Business lines for the zone is zero.
    (8) Voluntary Reductions. A ``Voluntary Reduction'' is one in which 
the local exchange carrier reduces prices other than through offset of 
net increases in End User Common Line charge revenues or Interstate 
Access Universal Service support received pursuant to Sec. 54.807 of 
this chapter, or through increases in other zone deaveraged End User 
Common Line charges.

[65 FR 38701, June 21, 2000; 65 FR 57744, Sept. 26, 2000]



Sec. 69.153  Presubscribed interexchange carrier charge (PICC).

    (a) A charge expressed in dollars and cents per line may be assessed 
upon the Multi-line business subscriber's presubscribed interexchange 
carrier to recover revenues totaling Average Price Cap CMT Revenues per 
Line month times the number of base period lines less revenues recovered 
through the End User Common Line charge established under Sec. 69.152 
and Interstate Access Universal Service Support Per Line (as defined in 
Sec. 54.807 of this chapter) multiplied by base period lines for the 
applicable customer class and zones receiving such support, up to a 
maximum of $4.31 per line per month. In the event the ceilings on the 
PICC prevent the PICC from recovering all the residual common line/
marketing and residual interconnection charge revenues, the PICC shall 
recover all residual common line/marketing revenues before it recovers 
residual interconnection charge revenues.
    (b) If an end-user customer does not have a presubscribed 
interexchange carrier, the local exchange carrier may collect the PICC 
directly from the end user.
    (c) [Reserved]
    (d) Local exchange carriers shall assess no more than five PICCs as 
calculated under paragraph (a) of this section for Primary Rate 
Interface ISDN service.
    (e) The maximum monthly PICC for Centrex lines shall be one-ninth of 
the maximum charge determined under paragraph (a) of this section, 
except that if a Centrex customer has fewer than nine lines, the maximum 
monthly PICC for those lines shall be the maximum charge determined 
under paragraph (a) of this section divided by the customer's number of 
Centrex lines.
    (f)-(h) [Reserved]

[65 FR 38703, June 21, 2000; 65 FR 57744, Sept. 26, 2000]



Sec. 69.154  Per-minute carrier common line charge.

    (a) Local exchange carriers may recover a per-minute carrier common 
line charge from interexchange carriers, collected on originating access 
minutes and calculated using the

[[Page 400]]

weighting method set forth in paragraph (c) of this section. The maximum 
such charge shall be the lower of:
    (1) The per-minute rate using base period demand that would recover 
the maximum allowable carrier common line revenue as defined in 
Sec. 61.46(d) of this chapter; or
    (2) The sum of the local switching, carrier common line and 
interconnection charge charges assessed on originating minutes on 
December 31, 1997, minus the local switching charges assessed on 
originating minutes.
    (b) To the extent that paragraph (a) of this section does not 
recover from interexchange carriers all permitted carrier common line 
revenue, the excess may be collected through a per-minute charge on 
terminating access calculated using the weighting method set forth in 
paragraph (c) of this section.
    (c) For each Carrier Common Line access element tariff, the premium 
originating Carrier Common Line charge shall be set at a level that 
recovers revenues allowed under paragraphs (a) and (b) of this section. 
The non-premium charges shall be equal to .45 multiplied by the premium 
charges.

[62 FR 31935, June 11, 1997, as amended at 65 FR 38703, June 21, 2000]



Sec. 69.155  Per-minute residual interconnection charge.

    (a) Local exchange carriers may recover a per-minute residual 
interconnection charge on originating access. The maximum such charge 
shall be the lower of:
    (1) The per-minute rate that would recover the total annual residual 
interconnection charge revenues permitted less the portion of the 
residual interconnection charge allowed to be recovered under 
Sec. 69.153; or
    (2) The sum of the local switching, carrier common line and residual 
interconnection charges assessed on originating minutes on December 31, 
1997, minus the local switching charges assessed on originating minutes, 
less the maximum amount allowed to be recovered under Sec. 69.154(a).
    (b) To the extent that paragraph (a) of this section prohibits a 
local exchange carrier from recovering all of the residual 
interconnection charge revenues permitted, the residual may be collected 
through a per-minute charge on terminating access.
    (c)(1) No portion of the charge assessed pursuant to paragraphs (a) 
or (b) of this section that recovers revenues that the local exchange 
carrier anticipates will be reassigned to other, facilities-based rate 
elements, including the tandem-switching rate element described in 
Sec. 69.111(g), the three-part tandem switched transport rate structure 
described in Sec. 69.111(a)(2), and port and multiplexer charges 
described in Sec. 69.111(l), shall be assessed upon minutes utilizing 
the local exchange carrier's local switching facilities, but not the 
local exchange carrier's transport service.
    (2) If a local exchange carrier cannot recover its full residual 
interconnection charge revenues through the PICC mechanism established 
in Sec. 69.153, and will consequently cover a portion of its residual 
interconnection charge revenues through per-minute charges assessed 
pursuant to paragraphs (a) and (b) of this section, then the local 
exchange carrier must allocate its residual interconnection charge 
revenues subject to the exemption established in paragraph (c)(1) of 
this section between the PICC and the per-minute residual 
interconnection charge in the same proportion as other residual 
interconnection charge revenues are allocated between these two recovery 
mechanisms.

[62 FR 31938, June 11, 1997; 62 FR 40460, July 29, 1997, as amended at 
62 FR 56133, Oct. 29, 1997]



Sec. 69.156  Marketing expenses.

    Effective July 1, 2000, the marketing expenses formerly allocated to 
the common line and traffic sensitive baskets, and the switched services 
within the trunking basket pursuant to Sec. 32.6610 of this chapter and 
Sec. 69.403 will now be recovered in the CMT basket created pursuant to 
Sec. 61.42(d)(1) of this chapter. These marketing expenses will be 
recovered through the elements outlined in Secs. 69.152, 69.153 and 
69.154.

[65 FR 38703, June 21, 2000]

[[Page 401]]



Sec. 69.157  Line port costs in excess of basic, analog service.

    To the extent that the costs of ISDN line ports, and line ports 
associated with other services, exceed the costs of a line port used for 
basic, analog service, local exchange carriers may recover the 
difference through a separate monthly end-user charge. As of June 30, 
2000, these rates will be capped until June 30, 2005.

[65 FR 38704, June 21, 2000; 65 FR 57744, Sept. 26, 2000]



Sec. 69.158  Universal service end user charges.

    To the extent the company makes contributions to the Universal 
Service Support Mechanisms pursuant to Secs. 54.706 and 54.709 of this 
chapter and the local exchange carrier seeks to recover some or all of 
the amount of such contribution, the local exchange carrier shall 
recover those contributions through a charge to end users other than 
Lifeline users. These contributions are not a part of any price cap 
baskets, and the charge to recover these contributions is not part of 
any other element established pursuant to part 69. Such a charge may be 
assessed on a per-line basis or as a percentage of interstate retail 
revenues, and at the option of the local exchange carrier it may be 
combined for billing purposes with other end user retail rate elements. 
A local exchange carrier opting to assess the Universal Service end-user 
rate element on a per-line basis may apply that charge using the 
``equivalency'' relationships established for the multi-line business 
PICC for Primary Rate ISDN service, as per Sec. 69.153(d), and for 
Centrex lines, as per Sec. 69.153(e).


[65 FR 38704, June 21, 2000; 65 FR 57744, Sept. 26, 2000]



               Subpart D--Apportionment of Net Investment

    Source: 52 FR 37312, Oct. 6, 1987, unless otherwise noted.



Sec. 69.301  General.

    (a) For purposes of computing annual revenue requirements for access 
elements net investment as defined in Sec. 69.2 (z) shall be apportioned 
among the interexchange category, the billing and collection category 
and access elements as provided in this subpart. For purposes of this 
subpart, local transport includes five elements: entrance facilities, 
direct-trunked transport, tandem-switched transport, dedicated signaling 
transport, and the interconnection charge. Expenses shall be apportioned 
as provided in subpart E of this part.
    (b) The End User Common Line and Carrier Common Line elements shall 
be combined for purposes of this subpart and subpart E of this part. 
Those elements shall be described collectively as the Common Line 
element. The Common Line element revenue requirement shall be segregated 
in accordance with subpart F of this part.

[52 FR 37312, Oct. 6, 1987, as amended at 57 FR 54722, Nov. 20, 1992]



Sec. 69.302  Net investment.

    (a) Investment in Accounts 2001, 1220 and Class B Rural Telephone 
Bank Stock booked in Account 1410 shall be apportioned among the 
interexchange category, billing and collection category and appropriate 
access elements as provided in Secs. 69.303 through 69.309.
    (b) Investment in Accounts 2002, 2003 and to the extent such 
inclusions are allowed by this Commission, Account 2005 shall be 
apportioned on the basis of the total investment in Account 2001, 
Telecommunications Plant in Service.

[52 FR 37312, Oct. 6, 1987, as amended at 54 FR 3456, Jan. 24, 1989; 67 
FR 5703, Feb. 6, 2002]



Sec. 69.303  Information origination/termination equipment (IOT).

    Investment in all other IOT shall be apportioned between the Special 
Access and Common Line elements on the basis of the relative number of 
equivalent lines in use, as provided herein. Each interstate or foreign 
Special Access Line, excluding lines designated in Sec. 69.115(e), shall 
be counted as one or more equivalent lines where channels are of higher 
than voice bandwidth, and the number of equivalent lines shall equal the 
number of voice capacity analog or digital channels to which

[[Page 402]]

the higher capacity is equivalent. Local exchange subscriber lines shall 
be multiplied by the interstate Subscriber Plant Factor to determine the 
number of equivalent local exchange subscriber lines.

[52 FR 37312, Oct. 6, 1987, as amended at 62 FR 31938, June 11, 1997]



Sec. 69.304  Subscriber line cable and wire facilities.

    (a) Investment in local exchange subscriber lines shall be assigned 
to the Common Line element.
    (b) Investment in interstate and foreign private lines and 
interstate WATS access lines shall be assigned to the Special access 
element.

[52 FR 37312, Oct. 6, 1987, as amended at 62 FR 31938, June 11, 1997]



Sec. 69.305  Carrier cable and wire facilities (C&WF).

    (a) Carrier C&WF that is not used for ``origination'' or 
``termination'' as defined in Sec. 69.2(bb) and Sec. 69.2(cc) shall be 
assigned to the interexchange category.
    (b) Carrier C&WF, other than WATS access lines, not assigned 
pursuant to paragraph (a), (c), or (e) of this section that is used for 
interexchange services that use switching facilities for origination and 
termination that are also used for local exchange telephone service 
shall be apportioned to the local Transport elements.
    (c) Carrier C&WF that is used to provide transmission between the 
local exchange carrier's signalling transfer point and the database 
shall be assigned to the Line Information Database sub-element at 
Sec. 69.120(a).
    (d) All Carrier C&WF that is not apportioned pursuant to paragraphs 
(a), (b), (c), and (e) of this section shall be assigned to the Special 
Access element.
    (e) Carrier C&WF that is used to provide transmission between the 
local exchange carrier's signalling transfer point and the local switch 
shall be assigned to the local switching category.

[52 FR 37312, Oct. 6, 1987, as amended at 57 FR 24380, June 9, 1992; 58 
FR 30995, May 28, 1993; 62 FR 31938, June 11, 1997]



Sec. 69.306  Central office equipment (COE).

    (a) The Separations Manual categories shall be used for purposes of 
apportioning investment in such equipment except that any Central office 
equipment attributable to local transport shall be assigned to the 
Transport elements.
    (b) COE Category 1 (Operator Systems Equipment) shall be apportioned 
among the interexchange category and the access elements as follows: 
Category 1 that is used for intercept services shall be assigned to the 
Local Switching element. Category 1 that is used for directory 
assistance shall be assigned to the Information element. Category 1 
other than service observation boards that is not assigned to the 
Information element and is not used for intercept services shall be 
assigned to the interexchange category. Service observation boards shall 
be apportioned among the interexchange category, and the Information and 
Transport access elements based on the remaining combined investment in 
COE Category 1, Category 2 and Category 3.
    (c) COE Category 2 (Tandem Switching Equipment) that is deemed to be 
exchange equipment for purposes of the Modification of Final Judgment in 
United States v. Western Electric Co. shall be assigned to the tandem 
switching charge subelement and the interconnection charge element. COE 
Category 2 which is associated with the signal transfer point function 
shall be assigned to the local switching category. COE Category 2 which 
is used to provide transmission facilities between the local exchange 
carrier's signalling transfer point and the database shall be assigned 
to the Line Information Database subelement at Sec. 69.120(a). All other 
COE Category 2 shall be assigned to the interexchange category.
    (d) COE Category 3 (Local Switching Equipment) shall be assigned to 
the Local Switching element except as provided in paragraph (a) of this 
section; and that,
    (1) For telephone companies subject to price cap regulation set 
forth in part 61 of this chapter, line-side port costs shall be assigned 
to the Common Line rate element; and

[[Page 403]]

    (2) Beginning January 1, 2002, for non-price cap local exchange 
carriers, line-side port costs shall be assigned to the Common Line rate 
element. Such amount shall be determined after any local switching 
support has been removed from the interstate Local Switching revenue 
requirement. Non-price cap local exchange carriers may use thirty 
percent of the interstate Local Switching revenue requirement, minus any 
local switching support, as a proxy for allocating line port costs to 
the Common Line category.
    (e) COE Category 4 (Circuit Equipment) shall be apportioned among 
the interexchange category and the Common Line, Transport, and Special 
Access elements. COE Category 4 shall be apportioned in the same 
proportions as the associated Cable and Wireless Facilities; except that 
any DS1/voice-grade multiplexer investment associated with analog local 
switches and assigned to the local transport category by this section 
shall be reallocated to the local switching category.

[52 FR 37312, Oct. 6, 1987, as amended at 57 FR 54722, Nov. 20, 1992; 58 
FR 30995, May 28, 1993; 62 FR 31938, June 11, 1997; 66 FR 59732, Nov. 
30, 2001]



Sec. 69.307  General support facilities.

    (a) General purpose computer investment used in the provision of the 
Line Information Database sub-element at Sec. 69.120(b) shall be 
assigned to that sub-element.
    (b) General purpose computer investment used in the provision of the 
billing name and address element at Sec. 69.128 shall be assigned to 
that element.
    (c)(1) Until June 30, 2002, for all local exchange carriers not 
subject to price cap regulation and for other carriers that acquire all 
of the billing and collection services that they provide to 
interexchange carriers from unregulated affiliates through affiliate 
transactions, from unaffiliated third parties, or from both of these 
sources, all other General Support Facilities investments shall be 
apportioned among the interexchange category, the billing and collection 
category, and Common Line, Local Switching, Information, Transport, and 
Special Access elements on the basis of Central Office Equipment, 
Information Origination/Termination Equipment, and Cable and Wire 
Facilities, combined.
    (2) Beginning July 1, 2002, for all local exchange carriers that 
acquire all of the billing and collection services that they provide to 
interexchange carriers from unregulated affiliates through affiliate 
transactions, from unaffiliated third parties, or from both of these 
sources, all other General Support Facilities investments shall be 
apportioned among the interexchange category, the billing and collection 
category, and Common Line, Local Switching, Information, Transport, and 
Special Access elements on the basis of Central Office Equipment, 
Information Origination/Termination Equipment, and Cable and Wire 
Facilities, combined.
    (d) For local exchange carriers subject to price cap regulation and 
not covered by Section 69.307(c), a portion of General purpose computer 
investment (Account 2124), investment in Land (Account 2111), Buildings 
(Account 2121), and Office equipment (Account 2123) shall be apportioned 
to the billing and collection category on the basis of the Big Three 
Expense Factors allocator, defined in Section 69.2 of this Part, 
modified to exclude expenses that are apportioned on the basis of 
allocators that include General Support Facilities investment. The 
remaining portion of investment in these four accounts together with all 
other General Support Facilities investments shall be apportioned among 
the interexchange category, the billing and collection category, and 
Common Line, Local Switching, Information, Transport, and Special Access 
Elements on the basis of Central Office Equipment, Information 
Origination/Termination Equipment, and Cable and Wire Facilities, 
combined.
    (e) Beginning July 1, 2002, for non-price cap local exchange 
carriers not covered by Sec. 69.307(c)(2), a portion of General purpose 
computer investment shall be apportioned to the billing and collection 
category on the basis of the Big Three Expense Factors allocator, 
defined in Sec. 69.2, modified to exclude expenses that are apportioned 
on the basis of allocators that include General

[[Page 404]]

Support Facilities investment. The remaining General Support Facilities 
investments shall be apportioned among the interexchange category, the 
billing and collection category, and Common Line, Local Switching, 
Information, Transport, and Special Access Elements on the basis of 
Central Office Equipment, Information Origination/Termination Equipment, 
and Cable and Wire Facilities, combined.

[58 FR 30995, May 28, 1993, as amended at 58 FR 36145, July 6, 1993; 62 
FR 31939, June 11, 1997; 62 FR 40464, July 29, 1997; 62 FR 65622, Dec. 
15, 1997; 66 FR 59732, Nov. 30, 2001]



Sec. 69.308  [Reserved]



Sec. 69.309  Other investment.

    Investment that is not apportioned pursuant to Secs. 69.302 through 
69.307 shall be apportioned among the interexchange category, the 
billing and collection category and access elements in the same 
proportions as the combined investment that is apportioned pursuant to 
Secs. 69.303 through 69.307.

[62 FR 31939, June 11, 1997]



Sec. 69.310  Capital leases.

    Capital Leases in Account 2680 shall be directly assigned to the 
appropriate interexchange category or access elements consistent with 
the treatment prescribed for similar plant costs or shall be apportioned 
in the same manner as Account 2001.



                  Subpart E--Apportionment of Expenses

    Source: 52 FR 37313, Oct. 6, 1987, unless otherwise noted.



Sec. 69.401  Direct expenses.

    (a) Plant Specific Operations Expenses in Accounts 6110 and 6120 
shall be apportioned among the interexchange category, the billing and 
collection category and appropriate access elements on the following 
basis:
    (1) Account 6110--Apportion on the basis of other investment 
apportioned pursuant to Sec. 69.309.
    (2) Account 6120--Apportion on the basis of General and Support 
Facilities investment pursuant to Sec. 69.307.
    (b) Plant Specific Operations Expenses in Accounts 6210, 6220, and 
6230, shall be apportioned among the interexchange category and access 
elements on the basis of the apportionment of the investment in Accounts 
2210, 2220, and 2230, respectively; provided that any expenses 
associated with DS1/voice-grade multiplexers, to the extent that they 
are not associated with an analog tandem switch, assigned to the local 
transport category by this paragraph shall be reallocated to the local 
switching category; provided further that any expenses associated with 
common channel signalling included in Account 6210 shall be assigned to 
the local transport category.
    (c) Plant Specific Operations Expenses in Accounts 6310 and 6410 
shall be assigned to the appropriate investment category and shall be 
apportioned among the interexchange category and access elements in the 
same proportions as the total associated investment.
    (d) Plant Non Specific Operations Expenses in Accounts 6510 and 6530 
shall be apportioned among the interchange category, the billing and 
collection category, and access elements in the same proportions as the 
combined investment in COE, IOT, and C&WF apportioned to each element 
and category.
    (e) Plant Non Specific Operations Expenses in Account 6540 shall be 
assigned to the interexchange category.
    (f) Plant Non Specific Operations Expenses in Account 6560 shall be 
apportioned among the interexchange category, the billing and collection 
category, and access elements in the same proportion as the associated 
investment.
    (g) Amortization of embedded customer premises wiring investment 
shall be deemed to be associated with Sec. 69.303(b) IOT investment for 
purposes of the apportionment described in paragraph (c) of this 
section.

[52 FR 37313, Oct. 6, 1987, as amended at 62 FR 31939, June 11, 1997]



Sec. 69.402  Operating taxes (Account 7200).

    (a) Federal income taxes, state and local income taxes, and state 
and local gross receipts or gross earnings taxes

[[Page 405]]

that are collected in lieu of a corporate income tax shall be 
apportioned among the interexchange category, the billing and collection 
category and all access elements based on the approximate net taxable 
income on which the tax is levied (positive or negative) applicable to 
each element and category.
    (b) All other operating taxes shall be apportioned among the 
interexchange category, the billing and collection category and all 
access elements in the same manner as the investment apportioned to each 
element and category pursuant to Sec. 69.309 Other Investment.



Sec. 69.403  Marketing expense (Account 6610).

    Marketing expense shall be apportioned among the interexchange 
category and all access elements in the same proportions as the combined 
investment that is apportioned pursuant to Sec. 69.309.



Sec. 69.404  Telephone operator services expenses in Account 6620.

    Telephone Operator Services expenses shall be apportioned among the 
interexchange category, and the Local Switching and Information elements 
based on the relative number of weighted standard work seconds. For 
those companies who contract with another company for the provision of 
these services, the expenses incurred shall be directly assigned among 
the interexchange category and the Local Switching and Information 
elements on the basis of the bill rendered for the services provided.



Sec. 69.405  Published directory expenses in Account 6620.

    Published Directory expenses shall be assigned to the Information 
element.



Sec. 69.406  Local business office expenses in Account 6620.

    (a) Local business office expenses shall be assigned as follows:
    (1) End user service order processing expenses attributable to 
presubscription shall be apportioned among the Common Line, Switching, 
and Transport elements in the same proportion as the investment 
apportioned to those elements pursuant to Sec. 69.309.
    (2) End user service order processing, payment and collection, and 
billing inquiry expenses attributable to the company's own interstate 
private line and special access service shall be assigned to the Special 
Access element.
    (3) End user service order processing, payment and collection, and 
billing inquiry expenses attributable to interstate private line service 
offered by an interexhange carrier shall be assigned to the billing and 
collection category.
    (4) End user service order processing, payment and collection, and 
billing inquiry expenses attributable to the company's own interstate 
message toll service shall be assigned to the interexchange category. 
End user service order processing, payment and collection, and billing 
inquiry expenses attributable to interstate message toll service offered 
by an interexchange carrier shall be assigned to the billing and 
collection category. End user payment and collection and billing inquiry 
expenses attributable to End User Common Line access billing shall be 
assigned to the Common Line element.
    (5) End user service order processing, payment and collection, and 
billing inquiry expenses attributable to TWX service shall be assigned 
to the Special Access element.
    (6) Interexchange carrier service order processing, payment and 
collection, and billing inquiry expenses attributable to private lines 
and special access shall be assigned to the Special Access element.
    (7) Interexchange carrier service order processing, payment and 
collection, and billing inquiry expenses attributable to interstate 
switched access and message toll, shall be apportioned among the Common 
Line, Local Switching and Transport elements in the same proportion as 
the investment apportioned to those elements pursuant to Sec. 69.309.
    (8) Interexchange carrier service order processing, payment and 
collection, and billing inquiry expenses attributable to billing and 
collection service shall be assigned to the billing and collection 
category.

[52 FR 37313, Oct. 6, 1987, as amended at 62 FR 31939, June 11, 1997]

[[Page 406]]



Sec. 69.407  Revenue accounting expenses in Account 6620.

    (a) Revenue accounting expenses that are attributable to End User 
Common Line access billings shall be assigned to the Common Line 
element.
    (b) Revenue Accounting Expenses that are attributable to carrier's 
carrier access billing and collecting expense shall be apportioned among 
all carrier's carrier access elements except the Common Line element. 
Such expenses shall be apportioned in the same proportion as the 
combined investment in COE, C&WF and IOT apportioned to those elements.
    (c) Revenue Accounting Expenses allocated to the interstate 
jurisdiction that are attributable to the provision of billing name and 
address information shall be assigned to the Billing Name and Address 
element.
    (d) All other Revenue Accounting Expenses shall be assigned to the 
billing and collection category.

[52 FR 37313, Oct. 6, 1987, as amended at 58 FR 65671, Dec. 16, 1993]



Sec. 69.408  All other customer services expenses in Account 6620.

    All other customer services expenses shall be apportioned among the 
Interexchange category, the billing and collection category and all 
access elements based on the combined expenses in Secs. 69.404 through 
69.407.

[52 FR 37313, Oct. 6, 1987, as amended at 54 FR 3456, Jan. 24, 1989]



Sec. 69.409  Corporate operations expenses (included in Account 6720).

    All corporate operations expenses shall be apportioned among the 
interexchange category, the billing and collection category and all 
access elements in accordance with the Big 3 Expense Factor as defined 
in Sec. 69.2(f).



Sec. 69.411  Other expenses.

    Except as provided in Secs. 69.412, 69.413, and 69.414, expenses 
that are not apportioned pursuant to Secs. 69.401 through 69.409 shall 
be apportioned among the interexchange category and all access elements 
in the same manner as Sec. 69.309 Other investment.

[62 FR 31639, June 11, 1997]



Sec. 69.412  Non participating company payments/receipts.

    For telephone companies that are not association Common Line tariff 
participants, the payment or receipt of funds described in 
Sec. 69.612(a) and (b) shall be apportioned, respectively, as an 
addition to or a deduction from their common line revenue requirement.



Sec. 69.413  Universal service fund expenses.

    Expenses allocated to the interstate jurisdiction pursuant to 
Secs. 36.631 and 36.641 shall be assigned to the Carrier Common Line 
Element until March 31, 1989. Beginning April 1, 1989, such expenses 
shall be assigned to the Universal Service Fund Element.



Sec. 69.414  Lifeline assistance expenses.

    Expenses allocated to the interstate jurisdiction pursuant to 
Sec. 36.741 shall be assigned to the Carrier Common Line element until 
March 31, 1989. Beginning April 1, 1989, such expenses shall be assigned 
to the Lifeline Assistance element.



Sec. 69.415  Reallocation of certain transport expenses.

    (a) Beginning January 1, 2002, non-price cap local exchange carriers 
shall reallocate a portion of the costs otherwise assigned to the 
transport category to the common line, local switching, information, and 
special access elements.
    (b) The amount to be reallocated is limited to the total revenues 
recovered through the interconnection charge assessed pursuant to 
Sec. 69.124 for the 12-month period ending June 30, 2001.
    (c) The reallocation of the amount in paragraph (b) of this section 
shall be based on each access element's projected revenue requirement 
divided by the total revenue requirement of all the access elements, 
provided that:
    (1) Local switching support shall not be included in the local 
switching category's projected revenue requirement, or in the total 
projected revenue requirement;
    (2) A non-price cap local exchange carrier's universal service 
contribution shall not be included in the numerator

[[Page 407]]

or the denominator of the allocation formula;
    (3) The amount determined in paragraph (b) of this section shall be 
excluded from the transport revenue requirement and from the total 
projected revenue requirement for purposes of the allocation 
calculations; and
    (4) The common line revenue requirement shall include long term 
support as provided in Sec. 54.303 of this chapter and, beginning July 
1, 2002, shall include Interstate Common Line Support as provided in 
Sec. 54.901 of this chapter.

[66 FR 59733, Nov. 30, 2001]



    Subpart F--Segregation of Common Line Element Revenue Requirement



Sec. 69.501  General.

    (a) [Reserved]
    (b) Until December 31, 2001, any portion of the Common Line element 
annual revenue requirement that is attributable to CPE investment or 
expense or surrogate CPE investment or expense shall be assigned to the 
Carrier Common Line element or elements.
    (c) Until December 31, 2001, any portion of the Common Line element 
annual revenue requirement that is attributable to customer premises 
wiring included in IOT investment or expense shall be assigned to the 
Carrier Common Line element or elements.
    (d) [Reserved]
    (e) Until December 31, 2001, any portion of the Common Line element 
revenue requirement that is not assigned to Carrier Common Line elements 
pursuant to paragraphs (b) and (c) of this section shall be apportioned 
between End User Common Line and Carrier Common Line pursuant to 
Sec. 69.502. Such portion of the Common Line element annual revenue 
requirement shall be described as the base factor portion for purposes 
of this subpart.
    (f) Beginning January 1, 2002, the Common Line element revenue 
requirement shall be apportioned between End User Common Line and 
Carrier Common Line pursuant to Sec. 69.502. The Common Line element 
annual revenue requirement shall be described as the base factor portion 
for purposes of this subpart.

[48 FR 10358, Mar. 11, 1983, as amended at 50 FR 18262, Apr. 30, 1985; 
52 FR 21542, June 8, 1987; 52 FR 37314, Oct. 6, 1987; 61 FR 65364, Dec. 
12, 1996; 62 FR 31939, June 11, 1997; 66 FR 59733, Nov. 30, 2001]



Sec. 69.502  Base factor allocation.

    Projected revenues from the following shall be deducted from the 
base factor portion to determine the amount that is assigned to the 
Carrier Common Line element:
    (a) End User Common Line charges, less any marketing expense 
revenues recovered through end user common line charges pursuant to 
Sec. 69.156;
    (b) Special Access surcharges; and
    (c) The portion of per-line support that carriers receive pursuant 
to Sec. 54.303.
    (d) Beginning July 1, 2002, the portion of per-line support that 
carriers receive pursuant to Sec. 54.901 of this chapter; and
    (e) Line port costs in excess of basic analog service pursuant to 
Sec. 69.130.

[62 FR 31939, June 11, 1997, as amended at 62 FR 40464, July 29, 1997; 
66 FR 59733, Nov. 30, 2001]



                 Subpart G--Exchange Carrier Association



Sec. 69.601  Exchange carrier association.

    (a) An association shall be established in order to prepare and file 
access charge tariffs on behalf of all telephone companies that do not 
file separate tariffs or concur in a joint access tariff of another 
telephone company for all access elements.
    (b) All telephone companies that participate in the distribution of 
Carrier Common Line revenue requirement, pay long term support to 
association Common Line tariff participants, or receive payments from 
the transitional support fund administered by the association shall be 
deemed to be members of the association.
    (c) All data submissions to the association required by this title 
shall be accompanied by the following certification statement signed by 
the officer or employee responsible for the overall preparation for the 
data submission:

[[Page 408]]

                              Certification

    I am (title of certifying officer or employee). I hereby certify 
that I have overall responsibility for the preparation of all data in 
the attached data submission for (name of carrier) and that I am 
authorized to execute this certification. Based on information known to 
me or provided to me by employees responsible for the preparation of the 
data in this submission, I hereby certify that the data have been 
examined and reviewed and are complete, accurate, and consistent with 
the rules of the Federal Communications Commission.
Date:___________________________________________________________________

Name:___________________________________________________________________

Title:__________________________________________________________________

(Persons making willful false statements in this data submission can be 
punished by fine or imprisonment under the provisions of the U.S. Code, 
Title 18, Section 1001).

[48 FR 10358, Mar. 11, 1983, as amended at 52 FR 21542, June 8, 1987; 60 
FR 19530, Apr. 19, 1995]



Sec. 69.602  Board of directors.

    (a) For purposes of this section, the association membership shall 
be divided into three subsets:
    (1) The first subset shall consist of the telephone companies owned 
and operated by the seven Regional Bell Holding Companies;
    (2) The second subset shall consist of all other telephone companies 
with annual operating revenues in excess of forty million dollars;
    (3) The third subset shall consist of all other telephone companies. 
All commonly controlled companies shall be deemed to be one company for 
purposes of this section.
    (b) There shall be fifteen directors of the association.
    (c) Until 1996, three directors shall represent the first subset, 
three directors shall represent the second subset, and nine directors 
shall represent the third subset. In 1996 and thereafter, two directors 
shall represent the first subset, two directors shall represent the 
second subset, six directors shall represent the third subset, and five 
directors shall represent all three subsets.
    (d) No director who represents all three subsets shall be a current 
or former officer or employee of the association or of any association 
member, or have a business relationship or other interest that could 
interfere with his or her exercise of independent judgment.
    (e) Each subset shall select the directors who will represent it 
individually through an annual election in which each member of the 
subset shall be entitled to vote for the number of directors that will 
represent such members' subset.
    (f) The association membership shall select the directors for the 
following calendar year who will represent all three subsets through an 
annual election in which each member of the association shall be 
entitled to one vote for each director position. There shall be at least 
two candidates meeting the qualifications in paragraph (d) of this 
section for each such director position:
    (1) In any election in which the most recently elected director for 
such position is not a qualified candidate;
    (2) If there has been no election for such position having more than 
one qualified candidate during the present and the two preceding 
calendar years; and
    (3) In any election for which the ballot lists two or more qualified 
candidates.
    (g) At least one director representing all three subsets shall be a 
member of each committee of association directors.
    (h) For each access element or group of access elements for which 
voluntary pooling is permitted, there shall be a committee that is 
responsible for the preparation of charges for the associated access 
elements that comply with all applicable sections in this part.
    (i) Directors shall serve for a term of one year commencing January 
1 and concluding on December 31 of each year.

[60 FR 19530, Apr. 19, 1995]



Sec. 69.603  Association functions.

    (a) The Association shall not engage in any activity that is not 
related to the preparation of access charge tariffs or the collection 
and distribution of access charge revenues or the operation of a billing 
and collection pool on an untariffed basis unless such activity is 
expressly authorized by order of the Commission.
    (b) Participation in Commission or court proceedings relating to 
access

[[Page 409]]

charge tariffs, the billing and collection of access charges, the 
distribution of access charge revenues, or the operation of a billing 
and collection pool on an untariffed basis shall be deemed to be 
authorized association activities.
    (c)-(e) [Reserved]
    (f) The association shall also prepare and file an access charge 
tariff containing terms and conditions for access service and form for 
the filing of rate schedules by telephone companies that choose to 
reference these terms and conditions while filing their own access 
rates.
    (g) The association shall divide the expenses of its operations into 
two categories. The first category (``Category I Expenses'') shall 
consist of those expenses that are associated with the preparation, 
defense, and modification of association tariffs, those expenses that 
are associated with the administration of pooled receipts and 
distributions of exchange carrier revenues resulting from association 
tariffs, those expenses that are associated with association functions 
pursuant to Sec. 69.603 (c)-(g), and those expenses that pertain to 
Commission proceedings involving subpart G of part 69 of the 
Commission's rules. The second category (``Category II Expenses'') shall 
consist of all other association expenses. Category I Expenses shall be 
sub-divided into three components in proportion to the revenues 
associated with each component. The first component (``Category I.A 
Expenses'') shall be in proportion to the Universal Service Fund and 
Lifeline Assistance revenues. The second component (``Category I.B 
Expenses'') shall be in proportion to the sum of the association End 
User Common Line revenues, the association Carrier Common Line revenues, 
the association Special Access Surcharge revenues, the Long Term Support 
payments and the Transitional Support payments. Beginning July 1, 2002, 
Interstate Common Line Support revenues shall be included in the 
allocation base for Category I.B expenses. The third component 
(``Category I.C Expenses'') shall be in proportion to the revenues from 
all other association interstate access charges.
    (h)(1) The revenue requirement for association tariffs filed 
pursuant to Sec. 69.4(c) shall not include any association expenses 
other than Category I.A Expenses.
    (2) The revenue requirement for association tariffs filed pursuant 
to Sec. 69.4 (a) and (b)(2) shall not include any Association expenses 
other than Category I.B Expenses.
    (3) The revenue requirement for association tariffs filed pursuant 
to Sec. 69.4(b) (1) and (3)-(7) shall not include any association 
expenses other than Category I.C Expenses.
    (4) No distribution to an exchange carrier of Universal Service Fund 
and Lifeline Assistance revenues shall include adjustments for 
association expenses other than Category I.A Expenses.
    (5) No distribution to an exchange carrier of revenues from 
association End User Common Line or Carrier Common Line charges, Special 
Access Surcharges or Long Term Support or Transitional Support payments 
shall include adjustments for association expenses other than Category 
I.B Expenses. Beginning July 1, 2002, Interstate Common Line Support 
shall be subject to this provision.
    (6) No distribution to an exchange carrier of revenues from 
association interstate access charges other than End User Common Line 
and Carrier Common Line charges and Special Access Surcharges shall 
include adjustments for association expenses other than Category I.C 
Expenses.
    (7) The association shall separately identify all Category I.A, I.B 
and I.C expenses in cost support materials filed with each annual 
association access tariff filing.

[54 FR 8197, Feb. 27, 1989, as amended at 54 FR 8199, Feb. 27, 1989; 62 
FR 41306, Aug. 1, 1997; 63 FR 70578, Dec. 21, 1998; 66 FR 59733, Nov. 
30, 2001]



Sec. 69.604  Billing and collection of access charges.

    (a) Telephone companies shall bill and collect all access charges 
except those charges specified in Secs. 69.116 and 69.117.
    (b) All access charges shall be billed monthly.

[51 FR 9012, Mar. 17, 1986, as amended at 52 FR 21543, June 8, 1987]

[[Page 410]]



Sec. 69.605  Reporting and distribution of pool access revenues.

    (a) Access revenues and cost data shall be reported by participants 
in association tariffs to the association for computation of monthly 
pool revenues distributions in accordance with this subpart.
    (b) Association expenses incurred during the month that are 
allowable access charge expenses shall be reimbursed before any other 
funds are disbursed.
    (c) Except as provided in paragraph (b) of this section, payments to 
average schedule companies that are computed in accordance with 
Sec. 69.606 shall be disbursed before any other funds are disbursed. For 
purposes of this part, a telephone company that was participating in 
average schedule settlements on December 1, 1982, shall be deemed to be 
an average schedule company except that any company that does not join 
in association tariffs for all access elements shall not be deemed to be 
an average schedule company.
    (d) The residue shall be disbursed to telephone companies that are 
not average schedule companies in accordance with Secs. 69.607 through 
69.610.
    (e) The association shall submit a report on or before February 1 of 
each calendar year describing the association's cost study review 
process for the preceding calendar year as well as the results of that 
process. For any revisions to cost study results made or recommended by 
the association that would change the respective carrier's calculated 
annual common line or traffic sensitive revenue requirement by ten 
percent or more, the report shall include the following information:
    (1) The name of the carrier;
    (2) A detailed description of the revisions;
    (3) The amount of the revisions;
    (4) The impact of the revisions on the carrier's calculated common 
line and traffic sensitive revenue requirements; and
    (5) The carrier's total annual common line and traffic sensitive 
revenue requirement.

[48 FR 10358, Mar. 11, 1983, as amended at 51 FR 17027, May 8, 1986; 52 
FR 21543, June 8, 1987; 54 FR 11537, Mar. 21, 1989; 60 FR 19530, Apr. 
19, 1995]



Sec. 69.606  Computation of average schedule company payments.

    (a) Payments shall be made in accordance with a formula approved or 
modified by the Commission. Such formula shall be designed to produce 
disbursements to an average schedule company that simulate the 
disbursements that would be received pursuant to Sec. 69.607 by a 
company that is representative of average schedule companies.
    (b) The association shall submit a proposed revision of the formula 
for each annual period subsequent to December 31, 1986, or certify that 
a majority of the directors of the association believe that no revisions 
are warranted for such period on or before December 31 of the preceding 
year.

(47 U.S.C. 154 (i) and (j), 201, 202, 203, 205, 218 and 403 and 5 U.S.C. 
553)

[48 FR 10358, Mar. 11, 1983, as amended at 50 FR 41356, Oct. 10, 1985; 
55 FR 6990, Feb. 28, 1990]



Sec. 69.607  Disbursement of Carrier Common Line residue.

    (a) The association shall compute a monthly net balance for each 
member telephone company that is not an average schedule company. If 
such a company has a negative net balance, the association shall bill 
that amount to such company. If such a company has a positive net 
balance, the association shall disburse that amount to such company.
    (b) The net balance for such a company shall be computed by 
multiplying a hypothetical net balance for such a company by a factor 
that is computed by dividing the Carrier Common Line residue by the sum 
of the hypothetical net balances for such companies.
    (c) The hypothetical net balance for each company shall be the sum 
of the

[[Page 411]]

hypothetical net balances for each access element. Such hypothetical net 
balances shall be computed in accordance with Secs. 69.608 to 69.610.

[48 FR 10358, Mar. 11, 1983, as amended at 51 FR 42237, Nov. 24, 1986]



Sec. 69.608  Carrier Common Line hypothetical net balance.

    The hypothetical net balance shall be equal to a Carrier Common Line 
revenue requirement for each such company that is computed in accordance 
with subpart F of this part.



Sec. 69.609  End User Common Line hypothetical net balances.

    (a) If the company does not participate in the association tariff 
for such element, the hypothetical net balance shall be zero.
    (b) If the company does participate in the association tariff for 
such element, the hypothetical net balance shall be computed by 
multiplying an amount that is computed by deducting access revenues 
collected by such company for such element from an End User Common Line 
revenue requirement for such company that is computed in accordance with 
subpart F of this part by a factor that is computed by dividing access 
revenues collected by all such companies for such element by an End User 
Common Line revenue requirement for all such companies that is computed 
in accordance with subpart F of this part. For purposes of this 
calculation, access revenues collected shall include any revenues 
foregone because of a voluntary reduction made pursuant to 
Sec. 69.104(r)(7).

[48 FR 10358, Mar. 11, 1983, as amended at 66 FR 59733, Nov. 30, 2001]



Sec. 69.610  Other hypothetical net balances.

    (a) The hypothetical net balance for an access element other than a 
Common Line element shall be computed as provided in this section.
    (b) If the company does not participate in the association tariff 
for such element, the hypothetical net balance shall be zero.
    (c) If the company does participate in the association tariff for 
such element, the hypothetical net balance shall be computed by 
deducting access revenues collected for such element from the sum of 
expense attributable to such element and the element residue apportioned 
to such company. The element residue shall be apportioned among such 
companies in the same proportions as the net investment attributable to 
such element.
    (d) The element residue shall be computed by deducting expenses of 
all participating companies attributable to such element from revenues 
collected by all participating companies for such element.

[48 FR 10358, Mar. 11, 1983, as amended at 51 FR 42237, Nov. 24, 1986]



Sec. 69.612  Long term and transitional support.

    A telephone company that does not participate in the association 
Common Line tariff shall have computed by the association:
    (a) Long term support obligation. (1) Beginning July 1, 1994 and 
until December 31, 1997, the Long Term Support payment obligation of 
telephone companies that do not participate in the NECA Common Line 
tariff shall equal the difference between the projected Carrier Common 
Line revenue requirement of association Common Line tariff participants 
and the projected revenue recovered by the association Carrier Common 
Line charge as calculated pursuant to Sec. 69.105(b)(1).
    (2) For the period from April 1, 1989 through June 30, 1994, the 
Long Term Support payment obligation shall be funded by all telephone 
companies that are not association Common Line tariff participants and 
do not receive transitional support pursuant to Sec. 69.612(b). The 
percentage of the total annual Long Term Support requirement paid by 
each telephone company in this group that is not a Level I or Level II 
Contributor shall equal the number of its common lines divided by the 
total number of common lines of all telephone companies paying Long Term 
Support. The remaining amount of Long Term Support requirement shall be 
allocated among Level I and Level II Contributors based upon the amount 
of each Level I and Level II Contributor's 1988 contributions to the 
association Common Line pool in relation to the total amount of 1988 
Common Line pool

[[Page 412]]

contributions of all other Level I and Level II Contributors. The 
association shall inform each telephone company about its mandatory Long 
Term Support obligations within a reasonable time prior to the filing of 
each telephone company's annual Common Line tariff revisions or other 
similar filing ordered by the Commission. Such amounts shall represent a 
negative net balance due to the association that it shall bill, collect, 
and distribute pursuant to Sec. 69.603(e).
    (3) Beginning July 1, 1994, and thereafter, the Long Term Support 
payment obligation shall be funded by each telephone company that files 
its own Carrier Common Line tariff and does not receive transitional 
support. The percentage of the total annual Long Term Support 
requirement paid by each of these companies shall equal the number of 
its common lines divided by the total number of common lines of all 
telephone companies paying Long Term Support. The association shall 
inform each telephone company about its Long Term Support obligation 
within a reasonable time prior to the filing of each telephone company's 
annual Common Line tariff revisions or other similar filing ordered by 
the Commission. Such amounts shall represent a negative net balance due 
to the association that it shall bill, collect, and distribute pursuant 
to Sec. 69.603(f).
    (b) Transitional support. (1) Telephone Companies categorized as 
Level I and Level II Receivers that file their own Common Line tariffs 
effective April 1, 1989 shall receive Transitional Support for a four 
year period commencing April 1, 1989. Level II Receivers that file their 
own Common Line tariffs effective July 1, 1990 shall receive 
Transitional Support for a four year period commencing July 1, 1990. 
Transitional Support for each of these telephone companies shall be 
computed on the basis of the net revenues less revenue requirement 
amounts for 1988 (adjusted for the additional revenues resulting from an 
increase in End User Common Line charges to $3.50). Transitional Support 
for these telephone companies during the transition shall be as follows:

Year 1--80% of the adjusted 1988 frozen amount
Year 2--60% of the adjusted 1988 frozen amount
Year 3--40% of the adjusted 1988 frozen amount
Year 4--20% of the adjusted 1988 frozen amount

    (2) For the period from April 1, 1989 through June 30, 1994, the 
Transitional Support Fund shall be funded by all telephone companies or 
groups of affiliated telephone companies that are not association Common 
Line tariff participants and do not qualify under Sec. 69.612(b)(1) for 
Transitional Support payments.

[55 FR 6990, Feb. 28, 1990, as amended at 62 FR 32962, June 17, 1997; 63 
FR 2133, Jan. 13, 1998]



                     Subpart H--Pricing Flexibility

    Source: 64 FR 51267, Sept. 22, 1999, unless otherwise noted.



Sec. 69.701  Application of rules in this subpart.

    The rules in this subpart apply to all incumbent LECs subject to 
price cap regulation, as defined in Sec. 61.3(x) of this chapter, 
seeking pricing flexibility on the basis of the development of 
competition in parts of its service area.



Sec. 69.703  Definitions.

    For purposes of this subpart:
    (a) Channel terminations. (1) A channel termination between an IXC 
POP and a serving wire center is a dedicated channel connecting an IXC 
POP and a serving wire center, offered for purposes of carrying special 
access traffic.
    (2) A channel termination between a LEC end office and a customer 
premises is a dedicated channel connecting a LEC end office and a 
customer premises, offered for purposes of carrying special access 
traffic.
    (b) Metropolitan Statistical Area (MSA). This term shall have the 
definition provided in Sec. 22.909(a) of this chapter.
    (c) Interexchange Carrier Point of Presence (IXC POP). The point of 
interconnection between an interexchange carrier's network and a local 
exchange carrier's network.

[[Page 413]]

    (d) Wire center. For purposes of this subpart, the term ``wire 
center'' shall refer to any location at which an incumbent LEC is 
required to provide expanded interconnection for special access pursuant 
to Sec. 64.1401(a) of this chapter, and any location at which an 
incumbent LEC is required to provide expanded interconnection for 
switched transport pursuant to Sec. 64.1401(b)(1) of this chapter.
    (e) Study area. A common carrier's entire service area within a 
state.



Sec. 69.705  Procedure.

    Price cap LECs filing petitions for pricing flexibility shall follow 
the procedures set forth in Sec. 1.774 of this chapter.



Sec. 69.707  Geographic scope of petition.

    (a) MSA. (1) A price cap LEC filing a petition for pricing 
flexibility in an MSA shall include data sufficient to support its 
petition, as set forth in this subpart, disaggregated by MSA.
    (2) A price cap LEC may request pricing flexibility for two or more 
MSAs in a single petition, provided that it submits supporting data 
disaggregated by MSA.
    (b) Non-MSA. (1) A price cap LEC will receive pricing flexibility 
with respect to those parts of a study area that fall outside of any 
MSA, provided that it provides data sufficient to support a finding that 
competitors have collocated in a number of wire centers in that non-MSA 
region sufficient to satisfy the criteria for the pricing flexibility 
sought in the petition, as set forth in this subpart, if the region at 
issue were an MSA.
    (2) The petitioner may aggregate data for all the non-MSA regions in 
a single study area for which it requests pricing flexibility in its 
petition.
    (3) A petitioner may request pricing flexibility in the non-MSA 
regions of two or more of its study areas, provided that it submits 
supporting data disaggregated by study area.



Sec. 69.709  Dedicated transport and special access services other than channel terminations between LEC end offices and customer premises.

    (a) Scope. This paragraph governs requests for pricing flexibility 
with respect to the following services:
    (1) Entrance facilities, as described in Sec. 69.110.
    (2) Transport of traffic over dedicated transport facilities between 
the serving wire center and the tandem switching office, as described in 
Sec. 69.111(a)(2)(iii).
    (3) Direct-trunked transport, as described in Sec. 69.112.
    (4) Special access services, as described in Sec. 69.114, other than 
channel terminations as defined in Sec. 69.703(a)(2) of this part.
    (b) Phase I triggers. To obtain Phase I pricing flexibility, as 
specified in Sec. 69.727(a) of this part, for the services described in 
paragraph (a) of this section, a price cap LEC must show that, in the 
relevant area as described in Sec. 69.707 of this part, competitors 
unaffiliated with the price cap LEC have collocated:
    (1) In fifteen percent of the petitioner's wire centers, and that at 
least one such collocator in each wire center is using transport 
facilities owned by a transport provider other than the price cap LEC to 
transport traffic from that wire center; or
    (2) In wire centers accounting for 30 percent of the petitioner's 
revenues from dedicated transport and special access services other than 
channel terminations between LEC end offices and customer premises, 
determined as specified in Sec. 69.725 of this part, and that at least 
one such collocator in each wire center is using transport facilities 
owned by a transport provider other than the price cap LEC to transport 
traffic from that wire center.
    (c) Phase II triggers. To obtain Phase II pricing flexibility, as 
specified in Sec. 69.727(b) of this part, for the services described in 
paragraph (a) of this section, a price cap LEC must show that, in the 
relevant area as described in

[[Page 414]]

Sec. 69.707 of this part, competitors unaffiliated with the price cap 
LEC have collocated:
    (1) in 50 percent of the petitioner's wire centers, and that at 
least one such collocator in each wire center is using transport 
facilities owned by a transport provider other than the price cap LEC to 
transport traffic from that wire center; or
    (2) in wire centers accounting for 65 percent of the petitioner's 
revenues from dedicated transport and special access services other than 
channel terminations between LEC end offices and customer premises, 
determined as specified in Sec. 69.725 of this part, and that at least 
one such collocator in each wire center is using transport facilities 
owned by a transport provider other than the price cap LEC to transport 
traffic from that wire center.



Sec. 69.711  Channel terminations between LEC end offices and customer premises.

    (a) Scope. This paragraph governs requests for pricing flexibility 
with respect to channel terminations between LEC end offices and 
customer premises.
    (b) Phase I triggers. To obtain Phase I pricing flexibility, as 
specified in Sec. 69.727(a) of this part, for channel terminations 
between LEC end offices and customer premises, a price cap LEC must show 
that, in the relevant area as described in Sec. 69.707 of this part, 
competitors unaffiliated with the price cap LEC have collocated:
    (1) In 50 percent of the petitioner's wire centers, and that at 
least one such collocator in each wire center is using transport 
facilities owned by a transport provider other than the price cap LEC to 
transport traffic from that wire center; or
    (2) In wire centers accounting for 65 percent of the petitioner's 
revenues from channel terminations between LEC end offices and customer 
premises, determined as specified in Sec. 69.725 of this part, and that 
at least one such collocator in each wire center is using transport 
facilities owned by a transport provider other than the price cap LEC to 
transport traffic from that wire center.
    (c) Phase II triggers. To obtain Phase II pricing flexibility, as 
specified in Sec. 69.727(b) of this part, for channel terminations 
between LEC end offices and customer premises, a price cap LEC must show 
that, in the relevant area as described in Sec. 69.707, competitors 
unaffiliated with the price cap LEC have collocated:
    (1) In 65 percent of the petitioner's wire centers, and that at 
least one such collocator in each wire center is using transport 
facilities owned by a transport provider other than the price cap LEC to 
transport traffic from that wire center; or
    (2) In wire centers accounting for 85 percent of the petitioner's 
revenues from channel terminations between LEC end offices and customer 
premises, determined as specified in Sec. 69.725, and that at least one 
such collocator in each wire center is using transport facilities owned 
by a transport provider other than the price cap LEC to transport 
traffic from that wire center.



Sec. 69.713  Common line, traffic-sensitive, and tandem-switched transport services.

    (a) Scope. This paragraph governs requests for pricing flexibility 
with respect to the following services:
    (1) Common line services, as described in Secs. 69.152, 69.153, and 
69.154.
    (2) Services in the traffic-sensitive basket, as described in 
Sec. 61.42(d)(2) of this chapter.
    (3) The traffic-sensitive components of tandem-switched transport 
services, as described in Secs. 69.111(a)(2)(i) and (ii).
    (b) Phase I triggers. (1) To obtain Phase I pricing flexibility, as 
specified in Sec. 69.727(a), for the services identified in paragraph 
(a) of this section, a price cap LEC must provide convincing evidence 
that, in the relevant area as described in Sec. 69.707, its unaffiliated 
competitors, in aggregate, offer service to at least 15 percent of the 
price cap LEC's customer locations.
    (2) For purposes of the showing required by paragraph (b)(1) of this 
section, the price cap LEC may not rely on service the competitors 
provide solely by reselling the price cap LEC's services, or provide 
through unbundled network elements as defined in Sec. 51.5 of this 
chapter, except that the price cap

[[Page 415]]

LEC may rely on service the competitors provide through the use of the 
price cap LEC's unbundled loops.
    (c) [Reserved]



Secs. 69.714-69.724  [Reserved]



Sec. 69.725  Attribution of revenues to particular wire centers.

    If a price cap LEC elects to show, in accordance with Sec. 69.709 or 
Sec. 69.711, that competitors have collocated in wire centers accounting 
for a certain percentage of revenues from the services at issue, the LEC 
must make the following revenue allocations:
    (a) For entrance facilities and channel terminations between an IXC 
POP and a serving wire center, the petitioner shall attribute all the 
revenue to the serving wire center.
    (b) For channel terminations between a LEC end office and a customer 
premises, the petitioner shall attribute all the revenue to the LEC end 
office.
    (c) For any dedicated service routed through multiple wire centers, 
the petitioner shall attribute 50 percent of the revenue to the wire 
center at each end of the transmission path, unless the petitioner can 
make a convincing case in its petition that some other allocation would 
be more representative of the extent of competitive entry in the MSA or 
the non-MSA parts of the study area at issue.



Sec. 69.727  Regulatory relief.

    (a) Phase I relief. Upon satisfaction of the Phase I triggers 
specified in Secs. 69.709(b), 69.711(b), or 69.713(b) for an MSA or the 
non-MSA parts of a study area, a price cap LEC will be granted the 
following regulatory relief in that area for the services specified in 
Secs. 69.709(a), 69.711(a), or 69.713(a), respectively:
    (1) Volume and term discounts;
    (2) Contract tariff authority, provided that
    (i) Contract tariff services are made generally available to all 
similarly situated customers; and
    (ii) The price cap LEC excludes all contract tariff offerings from 
price cap regulation pursuant to Sec. 61.42(f)(1) of this chapter.
    (iii) Before the price cap LEC provides a contract tariffed service, 
under Sec. 69.727(a), to one of its long-distance affiliates, as 
described in section 272 of the Communications Act of 1934, as amended, 
or Sec. 64.1903 of this chapter, the price cap LEC certifies to the 
Commission that it provides service pursuant to that contract tariff to 
an unaffiliated customer.
    (b) Phase II relief. Upon satisfaction of the Phase II triggers 
specified in Secs. 69.709(c) or 69.711(c) for an MSA or the non-MSA 
parts of a study area, a price cap LEC will be granted the following 
regulatory relief in that area for the services specified in 
Secs. 69.709(a) or 69.711(a), respectively:
    (1) Elimination of the rate structure requirements in subpart B of 
this part;
    (2) Elimination of price cap regulation; and
    (3) Filing of tariff revisions on one day's notice, notwithstanding 
the notice requirements for tariff filings specified in Sec. 61.58 of 
this chapter.



Sec. 69.729  New services.

    (a) Except for new services subject to paragraph (b) of this 
section, a price cap LEC may obtain pricing flexibility for a new 
service that has not been incorporated into a price cap basket by 
demonstrating in its pricing flexibility petition that the new service 
would be properly incorporated into one of the price cap baskets and 
service bands for which the price cap LEC seeks pricing flexibility.
    (b) Notwithstanding paragraph (a) of this section, a price cap LEC 
must demonstrate satisfaction of the triggers in Sec. 69.711(b) to be 
granted pricing flexibility for any new service that falls within the 
definition of a ``channel termination between a LEC end office and a 
customer premises'' as specified in Sec. 69.703(a)(2).



Sec. 69.731  Low-end adjustment mechanism.

    (a) Any price cap LEC obtaining Phase I or Phase II pricing 
flexibility for any service in any MSA in its service region, or for the 
non-MSA portion of any study area in its service region, shall be 
prohibited from making any low-end adjustment pursuant to 
Sec. 61.45(d)(1)(vii) of this chapter in all or part of its service 
region.

[[Page 416]]

    (b) Any affiliate of any price cap LEC obtaining Phase I or Phase II 
pricing flexibility for any service in any MSA in its service region 
shall be prohibited from making any low-end adjustment pursuant to 
Sec. 61.45(d)(1)(vii) of this chapter in all or part of its service 
region.


[[Page 417]]



                              FINDING AIDS




  --------------------------------------------------------------------

  A list of CFR titles, subtitles, chapters, subchapters and parts and 
an alphabetical list of agencies publishing in the CFR are included in 
the CFR Index and Finding Aids volume to the Code of Federal Regulations 
which is published separately and revised annually.

  Material Approved for Incorporation by Reference
  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  Table of OMB Control Numbers
  List of CFR Sections Affected

[[Page 419]]

            Material Approved for Incorporation by Reference

                     (Revised as of October 1, 2002)

  The Director of the Federal Register has approved under 5 U.S.C. 
552(a) and 1 CFR part 51 the incorporation by reference of the following 
publications. This list contains only those incorporations by reference 
effective as of the revision date of this volume. Incorporations by 
reference found within a regulation are effective upon the effective 
date of that regulation. For more information on incorporation by 
reference, see the preliminary pages of this volume.


47 CFR (PARTS 40-69)

FEDERAL COMMUNICATIONS COMMISSION
                                                                  47 CFR


American National Standards Institute (ANSI)

  25 West 43rd Street, Fourth floor, New York, NY 
  10036 (212) 642-4900
ANSI/EIA-470-A-1987, ``Telephone Instruments With                 68.317
  Loop Signaling'', paragraph 4.1.2 (including 
  table 4.4).
ANSI/EIA/TIA-579-1991, ``Acoustic-To-Digital and                  68.317
  Digital-To-Acoustic Transmission Requirements 
  for ISDN Terminals'' paragraph 4.3.2.


North American Numbering Council (NANC)

  Available from: International Transcription 
  Service, Inc., 1231 20th St. NW., Washington, DC 
  20036
Local Number Portability Administration Selection                  52.26
  Working Group Report, April 25, 1997, including 
  Appendixes.



[[Page 421]]



                    Table of CFR Titles and Chapters




                     (Revised as of October 1, 2002)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
        IV  Miscellaneous Agencies (Parts 400--500)

                          Title 2  [Reserved]

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  General Accounting Office (Parts 1--99)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Part 2100)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
        XV  Office of Administration, Executive Office of the 
                President (Parts 2500--2599)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Part 3201)
     XXIII  Department of Energy (Part 3301)
      XXIV  Federal Energy Regulatory Commission (Part 3401)
       XXV  Department of the Interior (Part 3501)
      XXVI  Department of Defense (Part 3601)

[[Page 422]]

    XXVIII  Department of Justice (Part 3801)
      XXIX  Federal Communications Commission (Parts 3900--3999)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)
    XXXIII  Overseas Private Investment Corporation (Part 4301)
      XXXV  Office of Personnel Management (Part 4501)
        XL  Interstate Commerce Commission (Part 5001)
       XLI  Commodity Futures Trading Commission (Part 5101)
      XLII  Department of Labor (Part 5201)
     XLIII  National Science Foundation (Part 5301)
       XLV  Department of Health and Human Services (Part 5501)
      XLVI  Postal Rate Commission (Part 5601)
     XLVII  Federal Trade Commission (Part 5701)
    XLVIII  Nuclear Regulatory Commission (Part 5801)
         L  Department of Transportation (Part 6001)
       LII  Export-Import Bank of the United States (Part 6201)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Part 6401)
      LVII  General Services Administration (Part 6701)
     LVIII  Board of Governors of the Federal Reserve System (Part 
                6801)
       LIX  National Aeronautics and Space Administration (Part 
                6901)
        LX  United States Postal Service (Part 7001)
       LXI  National Labor Relations Board (Part 7101)
      LXII  Equal Employment Opportunity Commission (Part 7201)
     LXIII  Inter-American Foundation (Part 7301)
       LXV  Department of Housing and Urban Development (Part 
                7501)
      LXVI  National Archives and Records Administration (Part 
                7601)
      LXIX  Tennessee Valley Authority (Part 7901)
      LXXI  Consumer Product Safety Commission (Part 8101)
    LXXIII  Department of Agriculture (Part 8301)
     LXXIV  Federal Mine Safety and Health Review Commission (Part 
                8401)
     LXXVI  Federal Retirement Thrift Investment Board (Part 8601)
    LXXVII  Office of Management and Budget (Part 8701)

                          Title 6  [Reserved]

              

                         Title 7--Agriculture

            Subtitle A--Office of the Secretary of Agriculture 
                (Parts 0--26)
            Subtitle B--Regulations of the Department of 
                Agriculture
         I  Agricultural Marketing Service (Standards, 
                Inspections, Marketing Practices), Department of 
                Agriculture (Parts 27--209)

[[Page 423]]

        II  Food and Nutrition Service, Department of Agriculture 
                (Parts 210--299)
       III  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 300--399)
        IV  Federal Crop Insurance Corporation, Department of 
                Agriculture (Parts 400--499)
         V  Agricultural Research Service, Department of 
                Agriculture (Parts 500--599)
        VI  Natural Resources Conservation Service, Department of 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)
      VIII  Grain Inspection, Packers and Stockyards 
                Administration (Federal Grain Inspection Service), 
                Department of Agriculture (Parts 800--899)
        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Miscellaneous Commodities), Department 
                of Agriculture (Parts 1200--1299)
       XIV  Commodity Credit Corporation, Department of 
                Agriculture (Parts 1400--1499)
        XV  Foreign Agricultural Service, Department of 
                Agriculture (Parts 1500--1599)
       XVI  Rural Telephone Bank, Department of Agriculture (Parts 
                1600--1699)
      XVII  Rural Utilities Service, Department of Agriculture 
                (Parts 1700--1799)
     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department of Agriculture (Parts 1800--
                2099)
      XXVI  Office of Inspector General, Department of Agriculture 
                (Parts 2600--2699)
     XXVII  Office of Information Resources Management, Department 
                of Agriculture (Parts 2700--2799)
    XXVIII  Office of Operations, Department of Agriculture (Parts 
                2800--2899)
      XXIX  Office of Energy, Department of Agriculture (Parts 
                2900--2999)
       XXX  Office of the Chief Financial Officer, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  Office of Procurement and Property Management, 
                Department of Agriculture (Parts 3200--3299)
    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  Cooperative State Research, Education, and Extension 
                Service, Department of Agriculture (Parts 3400--
                3499)

[[Page 424]]

      XXXV  Rural Housing Service, Department of Agriculture 
                (Parts 3500--3599)
     XXXVI  National Agricultural Statistics Service, Department 
                of Agriculture (Parts 3600--3699)
    XXXVII  Economic Research Service, Department of Agriculture 
                (Parts 3700--3799)
   XXXVIII  World Agricultural Outlook Board, Department of 
                Agriculture (Parts 3800--3899)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

                    Title 8--Aliens and Nationality

         I  Immigration and Naturalization Service, Department of 
                Justice (Parts 1--599)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)
        II  Grain Inspection, Packers and Stockyards 
                Administration (Packers and Stockyards Programs), 
                Department of Agriculture (Parts 200--299)
       III  Food Safety and Inspection Service, Department of 
                Agriculture (Parts 300--599)

                           Title 10--Energy

         I  Nuclear Regulatory Commission (Parts 0--199)
        II  Department of Energy (Parts 200--699)
       III  Department of Energy (Parts 700--999)
         X  Department of Energy (General Provisions) (Parts 1000-
                -1099)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)
     XVIII  Northeast Interstate Low-Level Radioactive Waste 
                Commission (Part 1800)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)

                      Title 12--Banks and Banking

         I  Comptroller of the Currency, Department of the 
                Treasury (Parts 1--199)
        II  Federal Reserve System (Parts 200--299)
       III  Federal Deposit Insurance Corporation (Parts 300--399)
        IV  Export-Import Bank of the United States (Parts 400--
                499)

[[Page 425]]

         V  Office of Thrift Supervision, Department of the 
                Treasury (Parts 500--599)
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)
      VIII  Federal Financing Bank (Parts 800--899)
        IX  Federal Housing Finance Board (Parts 900--999)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Department of the Treasury (Parts 1500--1599)
      XVII  Office of Federal Housing Enterprise Oversight, 
                Department of Housing and Urban Development (Parts 
                1700--1799)
     XVIII  Community Development Financial Institutions Fund, 
                Department of the Treasury (Parts 1800--1899)

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)
        IV  Emergency Steel Guarantee Loan Board (Parts 400--499)
         V  Emergency Oil and Gas Guaranteed Loan Board (Parts 
                500--599)

                    Title 14--Aeronautics and Space

         I  Federal Aviation Administration, Department of 
                Transportation (Parts 1--199)
        II  Office of the Secretary, Department of Transportation 
                (Aviation Proceedings) (Parts 200--399)
       III  Commercial Space Transportation, Federal Aviation 
                Administration, Department of Transportation 
                (Parts 400--499)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)
        VI  Air Transportation System Stabilization (Parts 1300--
                1399)

                 Title 15--Commerce and Foreign Trade

            Subtitle A--Office of the Secretary of Commerce (Parts 
                0--29)
            Subtitle B--Regulations Relating to Commerce and 
                Foreign Trade
         I  Bureau of the Census, Department of Commerce (Parts 
                30--199)
        II  National Institute of Standards and Technology, 
                Department of Commerce (Parts 200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  Foreign-Trade Zones Board, Department of Commerce 
                (Parts 400--499)

[[Page 426]]

       VII  Bureau of Industry and Security, Department of 
                Commerce (Parts 700--799)
      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  Technology Administration, Department of Commerce 
                (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
            Subtitle C--Regulations Relating to Foreign Trade 
                Agreements
        XX  Office of the United States Trade Representative 
                (Parts 2000--2099)
            Subtitle D--Regulations Relating to Telecommunications 
                and Information
     XXIII  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                2300--2399)

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

             Title 17--Commodity and Securities Exchanges

         I  Commodity Futures Trading Commission (Parts 1--199)
        II  Securities and Exchange Commission (Parts 200--399)
        IV  Department of the Treasury (Parts 400--499)

          Title 18--Conservation of Power and Water Resources

         I  Federal Energy Regulatory Commission, Department of 
                Energy (Parts 1--399)
       III  Delaware River Basin Commission (Parts 400--499)
        VI  Water Resources Council (Parts 700--799)
      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  United States Customs Service, Department of the 
                Treasury (Parts 1--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)

[[Page 427]]

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)
        II  Railroad Retirement Board (Parts 200--399)
       III  Social Security Administration (Parts 400--499)
        IV  Employees' Compensation Appeals Board, Department of 
                Labor (Parts 500--599)
         V  Employment and Training Administration, Department of 
                Labor (Parts 600--699)
        VI  Employment Standards Administration, Department of 
                Labor (Parts 700--799)
       VII  Benefits Review Board, Department of Labor (Parts 800-
                -899)
      VIII  Joint Board for the Enrollment of Actuaries (Parts 
                900--999)
        IX  Office of the Assistant Secretary for Veterans' 
                Employment and Training, Department of Labor 
                (Parts 1000--1099)

                       Title 21--Food and Drugs

         I  Food and Drug Administration, Department of Health and 
                Human Services (Parts 1--1299)
        II  Drug Enforcement Administration, Department of Justice 
                (Parts 1300--1399)
       III  Office of National Drug Control Policy (Parts 1400--
                1499)

                      Title 22--Foreign Relations

         I  Department of State (Parts 1--199)
        II  Agency for International Development (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  Broadcasting Board of Governors (Parts 500--599)
       VII  Overseas Private Investment Corporation (Parts 700--
                799)
        IX  Foreign Service Grievance Board (Parts 900--999)
         X  Inter-American Foundation (Parts 1000--1099)
        XI  International Boundary and Water Commission, United 
                States and Mexico, United States Section (Parts 
                1100--1199)
       XII  United States International Development Cooperation 
                Agency (Parts 1200--1299)
       XIV  Foreign Service Labor Relations Board; Federal Labor 
                Relations Authority; General Counsel of the 
                Federal Labor Relations Authority; and the Foreign 
                Service Impasse Disputes Panel (Parts 1400--1499)
        XV  African Development Foundation (Parts 1500--1599)
       XVI  Japan-United States Friendship Commission (Parts 1600-
                -1699)
      XVII  United States Institute of Peace (Parts 1700--1799)

[[Page 428]]

                          Title 23--Highways

         I  Federal Highway Administration, Department of 
                Transportation (Parts 1--999)
        II  National Highway Traffic Safety Administration and 
                Federal Highway Administration, Department of 
                Transportation (Parts 1200--1299)
       III  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 1300--1399)

                Title 24--Housing and Urban Development

            Subtitle A--Office of the Secretary, Department of 
                Housing and Urban Development (Parts 0--99)
            Subtitle B--Regulations Relating to Housing and Urban 
                Development
         I  Office of Assistant Secretary for Equal Opportunity, 
                Department of Housing and Urban Development (Parts 
                100--199)
        II  Office of Assistant Secretary for Housing-Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 200--299)
       III  Government National Mortgage Association, Department 
                of Housing and Urban Development (Parts 300--399)
        IV  Office of Housing and Office of Multifamily Housing 
                Assistance Restructuring, Department of Housing 
                and Urban Development (Parts 400--499)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)
        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (Housing Assistance Programs and 
                Public and Indian Housing Programs) (Parts 700--
                799)
      VIII  Office of the Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Section 8 Housing Assistance 
                Programs, Section 202 Direct Loan Program, Section 
                202 Supportive Housing for the Elderly Program and 
                Section 811 Supportive Housing for Persons With 
                Disabilities Program) (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--1699)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799)
       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)
       XXV  Neighborhood Reinvestment Corporation (Parts 4100--
                4199)

[[Page 429]]

                           Title 25--Indians

         I  Bureau of Indian Affairs, Department of the Interior 
                (Parts 1--299)
        II  Indian Arts and Crafts Board, Department of the 
                Interior (Parts 300--399)
       III  National Indian Gaming Commission, Department of the 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--799)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900)
        VI  Office of the Assistant Secretary-Indian Affairs, 
                Department of the Interior (Parts 1000--1199)
       VII  Office of the Special Trustee for American Indians, 
                Department of the Interior (Part 1200)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--899)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Bureau of Alcohol, Tobacco and Firearms, Department of 
                the Treasury (Parts 1--299)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--199)
       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)
         V  Bureau of Prisons, Department of Justice (Parts 500--
                599)
        VI  Offices of Independent Counsel, Department of Justice 
                (Parts 600--699)
       VII  Office of Independent Counsel (Parts 700--799)
      VIII  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 800--899)
        IX  National Crime Prevention and Privacy Compact Council 
                (Parts 900--999)
        XI  Department of Justice and Department of State (Parts 
                1100--1199)

                            Title 29--Labor

            Subtitle A--Office of the Secretary of Labor (Parts 0-
                -99)
            Subtitle B--Regulations Relating to Labor
         I  National Labor Relations Board (Parts 100--199)
        II  Office of Labor-Management Standards, Department of 
                Labor (Parts 200--299)
       III  National Railroad Adjustment Board (Parts 300--399)

[[Page 430]]

        IV  Office of Labor-Management Standards, Department of 
                Labor (Parts 400--499)
         V  Wage and Hour Division, Department of Labor (Parts 
                500--899)
        IX  Construction Industry Collective Bargaining Commission 
                (Parts 900--999)
         X  National Mediation Board (Parts 1200--1299)
       XII  Federal Mediation and Conciliation Service (Parts 
                1400--1499)
       XIV  Equal Employment Opportunity Commission (Parts 1600--
                1699)
      XVII  Occupational Safety and Health Administration, 
                Department of Labor (Parts 1900--1999)
        XX  Occupational Safety and Health Review Commission 
                (Parts 2200--2499)
       XXV  Pension and Welfare Benefits Administration, 
                Department of Labor (Parts 2500--2599)
     XXVII  Federal Mine Safety and Health Review Commission 
                (Parts 2700--2799)
        XL  Pension Benefit Guaranty Corporation (Parts 4000--
                4999)

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Minerals Management Service, Department of the 
                Interior (Parts 200--299)
       III  Board of Surface Mining and Reclamation Appeals, 
                Department of the Interior (Parts 300--399)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)

                 Title 31--Money and Finance: Treasury

            Subtitle A--Office of the Secretary of the Treasury 
                (Parts 0--50)
            Subtitle B--Regulations Relating to Money and Finance
         I  Monetary Offices, Department of the Treasury (Parts 
                51--199)
        II  Fiscal Service, Department of the Treasury (Parts 200-
                -399)
        IV  Secret Service, Department of the Treasury (Parts 400-
                -499)
         V  Office of Foreign Assets Control, Department of the 
                Treasury (Parts 500--599)
        VI  Bureau of Engraving and Printing, Department of the 
                Treasury (Parts 600--699)
       VII  Federal Law Enforcement Training Center, Department of 
                the Treasury (Parts 700--799)
      VIII  Office of International Investment, Department of the 
                Treasury (Parts 800--899)
        IX  Federal Claims Collection Standards (Department of the 
                Treasury--Department of Justice) (Parts 900--999)

[[Page 431]]

                      Title 32--National Defense

            Subtitle A--Department of Defense
         I  Office of the Secretary of Defense (Parts 1--399)
         V  Department of the Army (Parts 400--699)
        VI  Department of the Navy (Parts 700--799)
       VII  Department of the Air Force (Parts 800--1099)
            Subtitle B--Other Regulations Relating to National 
                Defense
       XII  Defense Logistics Agency (Parts 1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
     XVIII  National Counterintelligence Center (Parts 1800--1899)
       XIX  Central Intelligence Agency (Parts 1900--1999)
        XX  Information Security Oversight Office, National 
                Archives and Records Administration (Parts 2000--
                2099)
       XXI  National Security Council (Parts 2100--2199)
      XXIV  Office of Science and Technology Policy (Parts 2400--
                2499)
     XXVII  Office for Micronesian Status Negotiations (Parts 
                2700--2799)
    XXVIII  Office of the Vice President of the United States 
                (Parts 2800--2899)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Corps of Engineers, Department of the Army (Parts 200-
                -399)
        IV  Saint Lawrence Seaway Development Corporation, 
                Department of Transportation (Parts 400--499)

                          Title 34--Education

            Subtitle A--Office of the Secretary, Department of 
                Education (Parts 1--99)
            Subtitle B--Regulations of the Offices of the 
                Department of Education
         I  Office for Civil Rights, Department of Education 
                (Parts 100--199)
        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)
       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Vocational and Adult Education, Department 
                of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599)
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvement, 
                Department of Education (Parts 700--799)
        XI  National Institute for Literacy (Parts 1100--1199)
            Subtitle C--Regulations Relating to Education
       XII  National Council on Disability (Parts 1200--1299)

[[Page 432]]

                        Title 35--Panama Canal

         I  Panama Canal Regulations (Parts 1--299)

             Title 36--Parks, Forests, and Public Property

         I  National Park Service, Department of the Interior 
                (Parts 1--199)
        II  Forest Service, Department of Agriculture (Parts 200--
                299)
       III  Corps of Engineers, Department of the Army (Parts 300-
                -399)
        IV  American Battle Monuments Commission (Parts 400--499)
         V  Smithsonian Institution (Parts 500--599)
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
         X  Presidio Trust (Parts 1000--1099)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
        XV  Oklahoma City National Memorial Trust (Part 1501)
       XVI  Morris K. Udall Scholarship and Excellence in National 
                Environmental Policy Foundation (Parts 1600--1699)

             Title 37--Patents, Trademarks, and Copyrights

         I  United States Patent and Trademark Office, Department 
                of Commerce (Parts 1--199)
        II  Copyright Office, Library of Congress (Parts 200--299)
        IV  Assistant Secretary for Technology Policy, Department 
                of Commerce (Parts 400--499)
         V  Under Secretary for Technology, Department of Commerce 
                (Parts 500--599)

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--99)

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Rate Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--799)
        IV  Environmental Protection Agency and Department of 
                Justice (Parts 1400--1499)
         V  Council on Environmental Quality (Parts 1500--1599)
        VI  Chemical Safety and Hazard Investigation Board (Parts 
                1600--1699)

[[Page 433]]

       VII  Environmental Protection Agency and Department of 
                Defense; Uniform National Discharge Standards for 
                Vessels of the Armed Forces (Parts 1700--1799)

          Title 41--Public Contracts and Property Management

            Subtitle B--Other Provisions Relating to Public 
                Contracts
        50  Public Contracts, Department of Labor (Parts 50-1--50-
                999)
        51  Committee for Purchase From People Who Are Blind or 
                Severely Disabled (Parts 51-1--51-99)
        60  Office of Federal Contract Compliance Programs, Equal 
                Employment Opportunity, Department of Labor (Parts 
                60-1--60-999)
        61  Office of the Assistant Secretary for Veterans' 
                Employment and Training Service, Department of 
                Labor (Parts 61-1--61-999)
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       102  Federal Management Regulation (Parts 102-1--102-299)
       105  General Services Administration (Parts 105-1--105-999)
       109  Department of Energy Property Management Regulations 
                (Parts 109-1--109-99)
       114  Department of the Interior (Parts 114-1--114-99)
       115  Environmental Protection Agency (Parts 115-1--115-99)
       128  Department of Justice (Parts 128-1--128-99)
            Subtitle D--Other Provisions Relating to Property 
                Management [Reserved]
            Subtitle E--Federal Information Resources Management 
                Regulations System
       201  Federal Information Resources Management Regulation 
                (Parts 201-1--201-99) [Reserved]
            Subtitle F--Federal Travel Regulation System
       300  General (Parts 300-1--300-99)
       301  Temporary Duty (TDY) Travel Allowances (Parts 301-1--
                301-99)
       302  Relocation Allowances (Parts 302-1--302-99)
       303  Payment of Expenses Connected with the Death of 
                Certain Employees (Part 303-70)
       304  Payment from a Non-Federal Source for Travel Expenses 
                (Parts 304-1--304-99)

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
        IV  Centers for Medicare & Medicaid Services, Department 
                of Health and Human Services (Parts 400--499)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1999)

[[Page 434]]

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 200--499)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10005)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency (Parts 0--399)
        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

                       Title 45--Public Welfare

            Subtitle A--Department of Health and Human Services 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Welfare
        II  Office of Family Assistance (Assistance Programs), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)
       III  Office of Child Support Enforcement (Child Support 
                Enforcement Program), Administration for Children 
                and Families, Department of Health and Human 
                Services (Parts 300--399)
        IV  Office of Refugee Resettlement, Administration for 
                Children and Families Department of Health and 
                Human Services (Parts 400--499)
         V  Foreign Claims Settlement Commission of the United 
                States, Department of Justice (Parts 500--599)
        VI  National Science Foundation (Parts 600--699)
       VII  Commission on Civil Rights (Parts 700--799)
      VIII  Office of Personnel Management (Parts 800--899)
         X  Office of Community Services, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 1000--1099)
        XI  National Foundation on the Arts and the Humanities 
                (Parts 1100--1199)
       XII  Corporation for National and Community Service (Parts 
                1200--1299)
      XIII  Office of Human Development Services, Department of 
                Health and Human Services (Parts 1300--1399)
       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission on Fine Arts (Parts 2100--2199)

[[Page 435]]

     XXIII  Arctic Research Commission (Part 2301)
      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

                          Title 46--Shipping

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
       III  Coast Guard (Great Lakes Pilotage), Department of 
                Transportation (Parts 400--499)
        IV  Federal Maritime Commission (Parts 500--599)

                      Title 47--Telecommunication

         I  Federal Communications Commission (Parts 0--199)
        II  Office of Science and Technology Policy and National 
                Security Council (Parts 200--299)
       III  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 300-
                -399)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Department of Defense (Parts 200--299)
         3  Department of Health and Human Services (Parts 300--
                399)
         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)
         7  United States Agency for International Development 
                (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)
        10  Department of the Treasury (Parts 1000--1099)
        12  Department of Transportation (Parts 1200--1299)
        13  Department of Commerce (Parts 1300--1399)
        14  Department of the Interior (Parts 1400--1499)
        15  Environmental Protection Agency (Parts 1500--1599)
        16  Office of Personnel Management Federal Employees 
                Health Benefits Acquisition Regulation (Parts 
                1600--1699)
        17  Office of Personnel Management (Parts 1700--1799)
        18  National Aeronautics and Space Administration (Parts 
                1800--1899)
        19  Broadcasting Board of Governors (Parts 1900--1999)
        20  Nuclear Regulatory Commission (Parts 2000--2099)

[[Page 436]]

        21  Office of Personnel Management, Federal Employees 
                Group Life Insurance Federal Acquisition 
                Regulation (Parts 2100--2199)
        23  Social Security Administration (Parts 2300--2399)
        24  Department of Housing and Urban Development (Parts 
                2400--2499)
        25  National Science Foundation (Parts 2500--2599)
        28  Department of Justice (Parts 2800--2899)
        29  Department of Labor (Parts 2900--2999)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)
        35  Panama Canal Commission (Parts 3500--3599)
        44  Federal Emergency Management Agency (Parts 4400--4499)
        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199)
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)
        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement (Parts 5300--5399)
        54  Defense Logistics Agency, Department of Defense (Part 
                5452)
        57  African Development Foundation (Parts 5700--5799)
        61  General Services Administration Board of Contract 
                Appeals (Parts 6100--6199)
        63  Department of Transportation Board of Contract Appeals 
                (Parts 6300--6399)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement Policy, Office of Management and 
                Budget (Parts 9900--9999)

                       Title 49--Transportation

            Subtitle A--Office of the Secretary of Transportation 
                (Parts 1--99)
            Subtitle B--Other Regulations Relating to 
                Transportation
         I  Research and Special Programs Administration, 
                Department of Transportation (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)
       III  Federal Motor Carrier Safety Administration, 
                Department of Transportation (Parts 300--399)
        IV  Coast Guard, Department of Transportation (Parts 400--
                499)
         V  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 500--599)
        VI  Federal Transit Administration, Department of 
                Transportation (Parts 600--699)
       VII  National Railroad Passenger Corporation (AMTRAK) 
                (Parts 700--799)
      VIII  National Transportation Safety Board (Parts 800--999)
         X  Surface Transportation Board, Department of 
                Transportation (Parts 1000--1399)

[[Page 437]]

        XI  Bureau of Transportation Statistics, Department of 
                Transportation (Parts 1400--1499)
       XII  Transportation Security Administration, Department of 
                Transportation (Parts 1500--1599)

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 200--299)
       III  International Fishing and Related Activities (Parts 
                300--399)
        IV  Joint Regulations (United States Fish and Wildlife 
                Service, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)
         V  Marine Mammal Commission (Parts 500--599)
        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

                      CFR Index and Finding Aids

            Subject/Agency Index
            List of Agency Prepared Indexes
            Parallel Tables of Statutory Authorities and Rules
            List of CFR Titles, Chapters, Subchapters, and Parts
            Alphabetical List of Agencies Appearing in the CFR



[[Page 439]]





           Alphabetical List of Agencies Appearing in the CFR




                     (Revised as of October 1, 2002)

                                                  CFR Title, Subtitle or 
                     Agency                               Chapter

Administrative Committee of the Federal Register  1, I
Advanced Research Projects Agency                 32, I
Advisory Council on Historic Preservation         36, VIII
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development, United      22, II
     States
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department                            5, LXXIII
  Agricultural Marketing Service                  7, I, IX, X, XI
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Chief Financial Officer, Office of              7, XXX
  Commodity Credit Corporation                    7, XIV
  Cooperative State Research, Education, and      7, XXXIV
       Extension Service
  Economic Research Service                       7, XXXVII
  Energy, Office of                               7, XXIX
  Environmental Quality, Office of                7, XXXI
  Farm Service Agency                             7, VII, XVIII
  Federal Acquisition Regulation                  48, 4
  Federal Crop Insurance Corporation              7, IV
  Food and Nutrition Service                      7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Grain Inspection, Packers and Stockyards        7, VIII; 9, II
       Administration
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Procurement and Property Management, Office of  7, XXXII
  Rural Business-Cooperative Service              7, XVIII, XLII
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV
  Rural Telephone Bank                            7, XVI
  Rural Utilities Service                         7, XVII, XVIII, XLII
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force Department                              32, VII
  Federal Acquisition Regulation Supplement       48, 53
Alcohol, Tobacco and Firearms, Bureau of          27, I
AMTRAK                                            49, VII
American Battle Monuments Commission              36, IV
American Indians, Office of the Special Trustee   25, VII
Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX
Architectural and Transportation Barriers         36, XI
     Compliance Board
Arctic Research Commission                        45, XXIII

[[Page 440]]

Armed Forces Retirement Home                      5, XI
Army Department                                   32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Benefits Review Board                             20, VII
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase From People Who Are
Broadcasting Board of Governors                   22, V
  Federal Acquisition Regulation                  48, 19
Census Bureau                                     15, I
Centers for Medicare & Medicaid Services          42, IV
Central Intelligence Agency                       32, XIX
Chief Financial Officer, Office of                7, XXX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X
Civil Rights, Commission on                       45, VII
Civil Rights, Office for                          34, I
Coast Guard                                       33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage)                46, III
Commerce Department                               44, IV
  Census Bureau                                   15, I
  Economic Affairs, Under Secretary               37, V
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 13
  Fishery Conservation and Management             50, VI
  Foreign-Trade Zones Board                       15, IV
  Industry and Security, Bureau of                15, VII
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II
  National Marine Fisheries Service               50, II, IV, VI
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Telecommunications and Information     15, XXIII; 47, III
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office, United States      37, I
  Productivity, Technology and Innovation,        37, IV
       Assistant Secretary for
  Secretary of Commerce, Office of                15, Subtitle A
  Technology, Under Secretary for                 37, V
  Technology Administration                       15, XI
  Technology Policy, Assistant Secretary for      37, IV
Commercial Space Transportation                   14, III
Commodity Credit Corporation                      7, XIV
Commodity Futures Trading Commission              5, XLI; 17, I
Community Planning and Development, Office of     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Product Safety Commission                5, LXXI; 16, II
Cooperative State Research, Education, and        7, XXXIV
     Extension Service
Copyright Office                                  37, II
Corporation for National and Community Service    45, XII, XXV
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Court Services and Offender Supervision Agency    28, VIII
     for the District of Columbia
Customs Service, United States                    19, I
Defense Contract Audit Agency                     32, I
Defense Department                                5, XXVI; 32, Subtitle A; 
                                                  40, VII
  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII

[[Page 441]]

  Army Department                                 32, V; 33, II; 36, III, 
                                                  48, 51
  Defense Intelligence Agency                     32, I
  Defense Logistics Agency                        32, I, XII; 48, 54
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 2
  National Imagery and Mapping Agency             32, I
  Navy Department                                 32, VI; 48, 52
  Secretary of Defense, Office of                 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
District of Columbia, Court Services and          28, VIII
     Offender Supervision Agency for the
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Affairs, Under Secretary                 37, V
Economic Analysis, Bureau of                      15, VIII
Economic Development Administration               13, III
Economic Research Service                         7, XXXVII
Education, Department of                          5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  Elementary and Secondary Education, Office of   34, II
  Federal Acquisition Regulation                  48, 34
  Postsecondary Education, Office of              34, VI
  Secretary of Education, Office of               34, Subtitle A
  Special Education and Rehabilitative Services,  34, III
       Office of
  Vocational and Adult Education, Office of       34, IV
Educational Research and Improvement, Office of   34, VII
Elementary and Secondary Education, Office of     34, II
Emergency Oil and Gas Guaranteed Loan Board       13, V
Emergency Steel Guarantee Loan Board              13, IV
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             5, XXIII; 10, II, III, X
  Federal Acquisition Regulation                  48, 9
  Federal Energy Regulatory Commission            5, XXIV; 18, I
  Property Management Regulations                 41, 109
Energy, Office of                                 7, XXIX
Engineers, Corps of                               33, II; 36, III
Engraving and Printing, Bureau of                 31, VI
Environmental Protection Agency                   5, LIV; 40, I, IV, VII
  Federal Acquisition Regulation                  48, 15
  Property Management Regulations                 41, 115
Environmental Quality, Office of                  7, XXXI
Equal Employment Opportunity Commission           5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary  24, I
     for
Executive Office of the President                 3, I
  Administration, Office of                       5, XV
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                5, III, LXXVII; 14, VI; 
                                                  48, 99
  National Drug Control Policy, Office of         21, III
  National Security Council                       32, XXI; 47, 2
  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
       States
Export-Import Bank of the United States           5, LII; 12, IV
Family Assistance, Office of                      45, II

[[Page 442]]

Farm Credit Administration                        5, XXXI; 12, VI
Farm Credit System Insurance Corporation          5, XXX; 12, XIV
Farm Service Agency                               7, VII, XVIII
Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               31, IX
Federal Communications Commission                 5, XXIX; 47, I
Federal Contract Compliance Programs, Office of   41, 60
Federal Crop Insurance Corporation                7, IV
Federal Deposit Insurance Corporation             5, XXII; 12, III
Federal Election Commission                       11, I
Federal Emergency Management Agency               44, I
  Federal Acquisition Regulation                  48, 44
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
Federal Financing Bank                            12, VIII
Federal Highway Administration                    23, I, II
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Board                     12, IX
Federal Labor Relations Authority, and General    5, XIV; 22, XIV
     Counsel of the Federal Labor Relations 
     Authority
Federal Law Enforcement Training Center           31, VII
Federal Management Regulation                     41, 102
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Motor Carrier Safety Administration       49, III
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
  Board of Governors                              5, LVIII
Federal Retirement Thrift Investment Board        5, VI, LXXVI
Federal Service Impasses Panel                    5, XIV
Federal Trade Commission                          5, XLVII; 16, I
Federal Transit Administration                    49, VI
Federal Travel Regulation System                  41, Subtitle F
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Fishery Conservation and Management               50, VI
Food and Drug Administration                      21, I
Food and Nutrition Service                        7, II
Food Safety and Inspection Service                9, III
Foreign Agricultural Service                      7, XV
Foreign Assets Control, Office of                 31, V
Foreign Claims Settlement Commission of the       45, V
     United States
Foreign Service Grievance Board                   22, IX
Foreign Service Impasse Disputes Panel            22, XIV
Foreign Service Labor Relations Board             22, XIV
Foreign-Trade Zones Board                         15, IV
Forest Service                                    36, II
General Accounting Office                         4, I
General Services Administration                   5, LVII; 41, 105
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5
  Federal Management Regulation                   41, 102
  Federal Property Management Regulation          41, 101
  Federal Travel Regulation System                41, Subtitle F

[[Page 443]]

  General                                         41, 300
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
       of Certain Employees
  Relocation Allowances                           41, 302
  Temporary Duty (TDY) Travel Allowances          41, 301
Geological Survey                                 30, IV
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          5, XLV; 45, Subtitle A
  Centers for Medicare & Medicaid Services        42, IV
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Human Development Services, Office of           45, XIII
  Indian Health Service                           25, V
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Housing and Urban Development, Department of      5, LXV; 24, Subtitle B
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Housing, Office of, and Multifamily Housing     24, IV
       Assistance Restructuring, Office of
  Inspector General, Office of                    24, XII
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Housing, Office of, and Multifamily Housing       24, IV
     Assistance Restructuring, Office of
Human Development Services, Office of             45, XIII
Immigration and Naturalization Service            8, I
Independent Counsel, Office of                    28, VII
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
     Secretary
Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V
Industry and Security, Bureau of                  15, VII
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
     Archives and Records Administration
Inspector General
  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Interior Department
  American Indians, Office of the Special         25, VII
       Trustee
  Endangered Species Committee                    50, IV
  Federal Acquisition Regulation                  48, 14
  Federal Property Management Regulations System  41, 114
  Fish and Wildlife Service, United States        50, I, IV
  Geological Survey                               30, IV
  Indian Affairs, Bureau of                       25, I, V

[[Page 444]]

  Indian Affairs, Office of the Assistant         25, VI
       Secretary
  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  Minerals Management Service                     30, II
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Reclamation, Bureau of                          43, I
  Secretary of the Interior, Office of            43, Subtitle A
  Surface Mining and Reclamation Appeals, Board   30, III
       of
  Surface Mining Reclamation and Enforcement,     30, VII
       Office of
Internal Revenue Service                          26, I
International Boundary and Water Commission,      22, XI
     United States and Mexico, United States 
     Section
International Development, United States Agency   22, II
     for
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
International Fishing and Related Activities      50, III
International Investment, Office of               31, VIII
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
James Madison Memorial Fellowship Foundation      45, XXIV
Japan-United States Friendship Commission         22, XVI
Joint Board for the Enrollment of Actuaries       20, VIII
Justice Department                                5, XXVIII; 28, I, XI; 40, 
                                                  IV
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             31, IX
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration and Naturalization Service          8, I
  Offices of Independent Counsel                  28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor Department                                  5, XLII
  Benefits Review Board                           20, VII
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V
  Employment Standards Administration             20, VI
  Federal Acquisition Regulation                  48, 29
  Federal Contract Compliance Programs, Office    41, 60
       of
  Federal Procurement Regulations System          41, 50
  Labor-Management Standards, Office of           29, II, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Pension and Welfare Benefits Administration     29, XXV
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training Service,      41, 61; 20, IX
       Office of the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I
Labor-Management Standards, Office of             29, II, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Library of Congress                               36, VII
  Copyright Office                                37, II
Management and Budget, Office of                  5, III, LXXVII; 14, VI; 
                                                  48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II

[[Page 445]]

Micronesian Status Negotiations, Office for       32, XXVII
Mine Safety and Health Administration             30, I
Minerals Management Service                       30, II
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
Morris K. Udall Scholarship and Excellence in     36, XVI
     National Environmental Policy Foundation
National Aeronautics and Space Administration     5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National and Community Service, Corporation for   45, XII, XXV
National Archives and Records Administration      5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Bureau of Standards                      15, II
National Capital Planning Commission              1, IV
National Commission for Employment Policy         1, IV
National Commission on Libraries and Information  45, XVII
     Science
National Council on Disability                    34, XII
National Counterintelligence Center               32, XVIII
National Credit Union Administration              12, VII
National Crime Prevention and Privacy Compact     28, IX
     Council
National Drug Control Policy, Office of           21, III
National Foundation on the Arts and the           45, XI
     Humanities
National Highway Traffic Safety Administration    23, II, III; 49, V
National Imagery and Mapping Agency               32, I
National Indian Gaming Commission                 25, III
National Institute for Literacy                   34, XI
National Institute of Standards and Technology    15, II
National Labor Relations Board                    5, LXI; 29, I
National Marine Fisheries Service                 50, II, IV, VI
National Mediation Board                          29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI
National Park Service                             36, I
National Railroad Adjustment Board                29, III
National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       5, XLIII; 45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI
National Security Council and Office of Science   47, II
     and Technology Policy
National Telecommunications and Information       15, XXIII; 47, III
     Administration
National Transportation Safety Board              49, VIII
National Weather Service                          15, IX
Natural Resources Conservation Service            7, VI
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy Department                                   32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Northeast Interstate Low-Level Radioactive Waste  10, XVIII
     Commission
Nuclear Regulatory Commission                     5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Offices of Independent Counsel                    28, VI
Oklahoma City National Memorial Trust             36, XV
Operations Office                                 7, XXVIII
Overseas Private Investment Corporation           5, XXXIII; 22, VII
Panama Canal Commission                           48, 35
Panama Canal Regulations                          35, I
Patent and Trademark Office, United States        37, I
Payment From a Non-Federal Source for Travel      41, 304
     Expenses
Payment of Expenses Connected With the Death of   41, 303
   Certain Employees
[[Page 446]]

Peace Corps                                       22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension and Welfare Benefits Administration       29, XXV
Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I, XXXV; 45, VIII
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
       Acquisition Regulation
  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Postal Rate Commission                            5, XLVI; 39, III
Postal Service, United States                     5, LX; 39, I
Postsecondary Education, Office of                34, VI
President's Commission on White House             1, IV
     Fellowships
Presidential Documents                            3
Presidio Trust                                    36, X
Prisons, Bureau of                                28, V
Procurement and Property Management, Office of    7, XXXII
Productivity, Technology and Innovation,          37, IV
     Assistant Secretary
Public Contracts, Department of Labor             41, 50
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Refugee Resettlement, Office of                   45, IV
Regional Action Planning Commissions              13, V
Relocation Allowances                             41, 302
Research and Special Programs Administration      49, I
Rural Business-Cooperative Service                7, XVIII, XLII
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII, XXXV
Rural Telephone Bank                              7, XVI
Rural Utilities Service                           7, XVII, XVIII, XLII
Saint Lawrence Seaway Development Corporation     33, IV
Science and Technology Policy, Office of          32, XXIV
Science and Technology Policy, Office of, and     47, II
     National Security Council
Secret Service                                    31, IV
Securities and Exchange Commission                17, II
Selective Service System                          32, XVI
Small Business Administration                     13, I
Smithsonian Institution                           36, V
Social Security Administration                    20, III; 48, 23
Soldiers' and Airmen's Home, United States        5, XI
Special Counsel, Office of                        5, VIII
Special Education and Rehabilitative Services,    34, III
     Office of
State Department                                  22, I; 28, XI
  Federal Acquisition Regulation                  48, 6
Surface Mining and Reclamation Appeals, Board of  30, III
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Technology Administration                         15, XI
Technology Policy, Assistant Secretary for        37, IV
Technology, Under Secretary for                   37, V
Tennessee Valley Authority                        5, LXIX; 18, XIII
Thrift Supervision Office, Department of the      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     5, L
  Coast Guard                                     33, I; 46, I; 49, IV
  Coast Guard (Great Lakes Pilotage)              46, III
  Commercial Space Transportation                 14, III
  Contract Appeals, Board of                      48, 63
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II

[[Page 447]]

  Federal Motor Carrier Safety Administration     49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Maritime Administration                         46, II
  National Highway Traffic Safety Administration  23, II, III; 49, V
  Research and Special Programs Administration    49, I
  Saint Lawrence Seaway Development Corporation   33, IV
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Surface Transportation Board                    49, X
  Transportation Security Administration          49, XII
  Transportation Statistics Bureau                49, XI
Transportation, Office of                         7, XXXIII
Transportation Security Administration            49, XII
Transportation Statistics Bureau                  49, XI
Travel Allowances, Temporary Duty (TDY)           41, 301
Treasury Department                               5, XXI; 12, XV; 17, IV; 
                                                  31, IX
  Alcohol, Tobacco and Firearms, Bureau of        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs Service, United States                  19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Law Enforcement Training Center         31, VII
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  International Investment, Office of             31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
  Thrift Supervision, Office of                   12, V
Truman, Harry S. Scholarship Foundation           45, XVIII
United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training Service,        41, 61; 20, IX
     Office of the Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Vocational and Adult Education, Office of         34, IV
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I
World Agricultural Outlook Board                  7, XXXVIII

[[Page 449]]

                                     

                                     



                      Table of OMB Control Numbers



The OMB control numbers for chapter I of title 47 were consolidated into 
Sec. 0.408 at 64 FR 55425, Oct. 13, 1999 and revised at 66 FR 48973, 
Sept. 25, 2001. Section 0.408 is reprinted below for the convenience of 
the user.

Sec. 0.408  OMB control numbers and expiration dates assigned pursuant 
          to the Paperwork Reduction Act of 1995.

    (a) Purpose. This section displays the control numbers and 
expiration dates for the Commission information collection requirements 
assigned by the Office of Management and Budget (``OMB'') pursuant to 
the Paperwork Reduction Act of 1995, Public Law 104-13. The Commission 
intends that this section comply with the requirement that agencies 
display current control numbers and expiration dates assigned by the 
Director, OMB, for each approved information collection requirement. Not 
withstanding any other provisions of law, no person shall be subject to 
any penalty for failing to comply with a collection of information 
subject to the Paperwork Reduction Act (PRA) that does not display a 
valid control number. Questions concerning the OMB control numbers and 
expiration dates should be directed to the Associate Managing Director--
Performance Evaluation and Records Management, (``AMD-PERM'') , Federal 
Communications Commission, Washington, DC 20554.
    (b) Display

 
3060-0004.........................  Guidelines for                 (\1\)
                                     Evaluating the
                                     Environmental
                                     Effects of
                                     Radiofrequency
                                     Radiation, ET
                                     Docket No. 93-62.
3060-0009.........................  FCC 316.............        10/31/02
3060-0010.........................  FCC 323.............        11/30/02
3060-0012.........................  FCC 701.............        07/31/03
3060-0016.........................  FCC 346.............        01/31/04
3060-0017.........................  FCC 347.............        02/28/03
3060-0020.........................  FCC 406.............        05/31/02
3060-0021.........................  FCC 480.............        12/31/03
3060-0024.........................  Sec. 76.29..........           (\1\)
3060-0025.........................  FCC 755.............        08/31/03
3060-0027.........................  FCC 301.............        08/31/03
3060-0029.........................  FCC 302-TV..........        06/30/04
3060-0031.........................  FCC 314.............        05/31/04
3060-0032.........................  FCC 315.............        05/31/04
3060-0034.........................  FCC 340.............        02/29/04
3060-0049.........................  FCC 753.............        08/31/03
3060-0053.........................  FCC 703.............        10/31/02
3060-0054.........................  FCC 820.............        12/31/01
3060-0055.........................  FCC 327.............        04/30/03
3060-0056.........................  FCC 730.............        09/30/01
3060-0057.........................  FCC 731 and Secs.           06/30/03
                                     2.911, 2.960, and
                                     2.1033(a).
3060-0059.........................  FCC 740.............        08/31/03
3060-0061.........................  FCC 325.............        07/31/02
3060-0062.........................  FCC 330.............        03/31/02
3060-0065.........................  FCC 442.............        02/28/02
3060-0066.........................  FCC 330-R...........        07/31/03
3060-0069.........................  FCC 756.............        09/30/02
3060-0072.........................  FCC 409.............        11/30/01
3060-0075.........................  FCC 345.............        10/31/03
3060-0076.........................  FCC 395.............        02/28/03
3060-0084.........................  FCC 323-E...........        07/31/02
3060-0089.........................  FCC 503.............        10/30/01
3060-0093.........................  FCC 405.............        11/30/03
3060-0095.........................  FCC 395-A...........        04/30/03
3060-0105.........................  FCC 430.............        11/30/03

[[Page 450]]

 
3060-0106.........................  Sec. 43.61..........        12/31/02
3060-0110.........................  FCC 303-S...........        07/31/04
3060-0113.........................  FCC 396.............        04/30/03
3060-0120.........................  FCC 396-A...........        04/30/03
3060-0126.........................  Sec. 73.1820........        10/31/02
3060-0127.........................  FCC 1046............        03/31/03
3060-0132.........................  FCC 1068-A..........        01/31/04
3060-0139.........................  FCC 854/854-R/854ULS        08/31/02
3060-0147.........................  Sec. 64.804.........        02/28/03
3060-0149.........................  Part 63, Section            11/30/01
                                     214, Secs. 63.01-
                                     63.601.
3060-0157.........................  Sec. 73.99..........        05/31/03
3060-0160.........................  Sec. 73.158.........        01/31/02
3060-0161.........................  Sec. 73.61..........        12/31/02
3060-0166.........................  Part 42.............        09/30/01
3060-0168.........................  Sec. 43.43..........        06/30/03
3060-0169.........................  Secs. 43.51 and             04/30/02
                                     43.53.
3060-0170.........................  Sec. 73.1030........        03/31/02
3060-0171.........................  Sec. 73.1125........        10/31/01
3060-0173.........................  Sec. 73.1207........        07/31/04
3060-0174.........................  Sec. 73.1212........        07/31/02
3060-0175.........................  Sec. 73.1250........        10/31/02
3060-0176.........................  Sec. 73.1510........        11/30/02
3060-0178.........................  Sec. 73.1560........        01/31/03
3060-0179.........................  Sec. 73.1590........        07/31/04
3060-0180.........................  Sec. 73.1610........        02/28/02
3060-0181.........................  Sec. 73.1615........        12/31/02
3060-0182.........................  Sec. 73.1620........        04/30/04
3060-0184.........................  Sec. 73.1740........        12/31/01
3060-0185.........................  Sec. 73.3613........        10/31/02
3060-0187.........................  Sec. 73.3594........        02/29/04
3060-0188.........................  FCC 380.............        08/31/04
3060-0190.........................  Sec. 73.3544........        02/29/04
3060-0192.........................  Sec. 87.103.........        01/31/04
3060-0194.........................  Sec. 74.21..........        12/31/01
3060-0202.........................  Sec. 87.37..........        10/31/03
3060-0204.........................  Sec. 90.20(a)(2)(v).        07/31/02
3060-0206.........................  Part 21.............        07/31/04
3060-0207.........................  Secs. 11.35, 11.51          11/30/02
                                     and 11.52.
3060-0208.........................  Sec. 73.1870........        04/30/03
3060-0211.........................  Sec. 73.1943........           (\1\)
3060-0212.........................  Sec. 73.2080........        04/30/03
3060-0213.........................  Sec. 73.3525........        11/30/03
3060-0214.........................  Sec. 73.3526........        10/31/02
3060-0215.........................  Sec. 73.3527........        10/31/01
3060-0216.........................  Sec. 73.3538........        11/30/01
3060-0219.........................  Sec. 90.20(a)(2)(xi)        09/30/02
3060-0221.........................  Sec. 90.155.........        12/31/01
3060-0222.........................  Sec. 97.213.........        10/31/03
3060-0223.........................  Sec. 90.129.........        04/30/02
3060-0228.........................  Sec. 80.59..........        07/31/04
3060-0233.........................  Part 36.............        07/31/03
3060-0236.........................  Sec. 74.703.........        06/30/02
3060-0240.........................  Sec. 74.651.........        02/28/03
3060-0241.........................  Sec. 74.633.........        02/28/03
3060-0242.........................  Sec. 74.604.........        02/28/03
3060-0243.........................  Sec. 74.551.........        05/31/02
3060-0245.........................  Sec. 74.537.........        05/31/02
3060-0246.........................  Sec. 74.452.........        08/31/03
3060-0248.........................  Sec. 74.751.........        06/30/02
3060-0249.........................  Sec. 74.781.........        04/30/03
3060-0250.........................  Sec. 74.784.........        02/28/03
3060-0251.........................  Sec. 74.833.........        09/30/02
3060-0254.........................  Sec. 74.433.........        08/31/03
3060-0259.........................  Sec. 90.263.........        10/31/03
3060-0261.........................  Sec. 90.215.........        04/30/04
3060-0262.........................  Sec. 90.179.........        12/31/01
3060-0264.........................  Sec. 80.413.........        10/31/03
3060-0265.........................  Sec. 80.868.........        07/31/04
3060-0270.........................  Sec. 90.443.........        11/30/03
3060-0280.........................  Sec. 90.633(f) & (g)        08/31/03
3060-0281.........................  Sec. 90.651.........        05/31/04
3060-0286.........................  Sec. 80.302.........        04/30/04

[[Page 451]]

 
3060-0287.........................  Sec. 78.69..........        10/31/01
3060-0288.........................  Sec. 78.33..........        03/31/03
3060-0289.........................  Secs. 76.601,               03/31/02
                                     76.1704, 76.1705
                                     and 76.1717.
3060-0290.........................  Sec. 90.517.........        05/31/02
3060-0291.........................  Sec. 90.477.........        09/30/01
3060-0292.........................  Part 69.............        11/30/03
3060-0295.........................  Secs. 90.607(b)(1) &        03/31/04
                                     (c)(1).
3060-0297.........................  Sec. 80.503.........        10/31/03
3060-0298.........................  Part 61.............        11/30/01
3060-0307.........................  Amendment of part 90        06/30/03
                                     of the Commission's
                                     Rules to Facilitate
                                     Future Development
                                     of SMR Systems in
                                     the 800 MHz
                                     Frequency Band.
3060-0308.........................  Sec. 90.505.........        04/30/04
3060-0309.........................  Sec. 74.1281........        10/31/02
3060-0310.........................  Sec. 76.1801........        03/31/03
3060-0311.........................  Sec. 76.54..........        09/30/02
3060-0313.........................  Sec. 76.1701........     Pending OMB
                                                           Approval(\1\)
3060-0315.........................  Sec. 76.1615........        09/30/02
3060-0316.........................  Sec. 76.1700........           (\1\)
3060-0320.........................  Sec. 73.1350........        04/30/04
3060-0321.........................  Sec. 73.68..........        01/31/02
3060-0325.........................  Sec. 80.605.........        06/30/02
3060-0326.........................  Sec. 73.69..........        09/30/02
3060-0329.........................  Sec. 2.955..........        09/30/02
3060-0331.........................  Secs. 76.1803 and           08/31/04
                                     76.1804.
3060-0332.........................  Secs. 76.614 and            09/30/01
                                     76.1706.
3060-0340.........................  Sec. 73.51..........        10/31/03
3060-0341.........................  Sec. 73.1680........        08/31/03
3060-0342.........................  Sec. 74.1284........        07/31/03
3060-0346.........................  Sec. 78.27..........        03/31/04
3060-0347.........................  Sec. 97.311.........        02/28/03
3060-0349.........................  Secs. 76.73, 76.75,         04/30/03
                                     76.79, and 76.1702.
3060-0355.........................  FCC 492 and FCC 492A        07/31/04
3060-0357.........................  Sec. 63.701.........        11/31/01
3060-0360.........................  Sec. 80.409(c)......        08/31/04
3060-0362.........................  Inspection of Radio         02/28/03
                                     Installation on
                                     Large Cargo and
                                     Small Passenger
                                     Ships.
3060-0364.........................  Secs. 80.409(d) and         08/31/04
                                     (e).
3060-0368.........................  Sec. 97.523.........        06/30/03
3060-0370.........................  Part 32.............        06/30/03
3060-0374.........................  Sec. 73.1690........        01/31/02
3060-0384.........................  Sec. 64.904.........        09/30/03
3060-0386.........................  Sec. 73.1635........        07/31/02
3060-0387.........................  Sec. 15.201(d)......        12/31/02
3060-0390.........................  FCC 395-B...........        04/30/03
3060-0391.........................  Program to Monitor          12/31/01
                                     the Impact of
                                     Universal Service
                                     Support Mechanisms.
3060-0392.........................  47 CFR Part 1,              01/31/04
                                     Subpart J, Pole
                                     Attachment
                                     Complaint
                                     Procedures.
3060-0393.........................  Sec. 73.54..........        10/31/02
3060-0394.........................  Sec. 1.420..........        10/31/02
3060-0395.........................  FCC Reports 43-02,          06/30/03
                                     FCC 43-05 and FCC
                                     43-07.
3060-0397.........................  Sec. 15.7(a)........        07/31/03
3060-0398.........................  Secs. 2.948,                02/28/03
                                     15.117(g)(2).
3060-0400.........................  Tariff Review Plan..        05/31/03
3060-0404.........................  FCC 350.............        05/31/02
3060-0405.........................  FCC 349.............        03/31/04
3060-0407.........................  Sec. 73.3598........        05/31/02
3060-0410.........................  FCC 495A and FCC            06/30/03
                                     495B.
3060-0411.........................  FCC 485.............        06/30/04
3060-0414.........................  Terrain Shielding           11/30/03
                                     Policy.
3060-0419.........................  Secs. 76.94, 76.95,         10/31/01
                                     76.155, 76.156,
                                     76.157, 76.159 and
                                     76.1609.
3060-0421.........................  New Service                 05/31/03
                                     Reporting
                                     Requirements under
                                     Price Cap
                                     Regulation.
3060-0422.........................  Sec. 68.5...........        10/31/01
3060-0423.........................  Sec. 73.3588........        10/31/02
3060-0427.........................  Sec. 73.3523........        12/31/03
3060-0430.........................  Sec. 1.1206.........        09/30/01
3060-0433.........................  FCC 320.............        03/31/02
3060-0434.........................  Sec. 90.20(e)(6)....        05/31/02
3060-0435.........................  Sec. 80.361.........        09/30/02
3060-0436.........................  Secs. 15.214(c) and         12/31/02
                                     68.200(k).
3060-0439.........................  Sec. 64.201.........        03/31/04
3060-0441.........................  Sec. 90.621(B)(4)...        10/31/03

[[Page 452]]

 
3060-0449.........................  Sec. 1.65(c)........        12/31/01
3060-0452.........................  Sec. 73.3589........        10/31/02
3060-0454.........................  Regulation of               04/30/03
                                     International
                                     Accounting Rates.
3060-0463.........................  Secs. 64.601-64.605.        06/30/03
3060-0465.........................  Sec. 74.985.........        08/31/03
3060-0466.........................  Sec. 74.1283........        04/30/03
3060-0470.........................  Secs. 64.901-64.903,        05/31/03
                                     Allocation of Cost,
                                     Cost Allocation
                                     Manual, RAO Letters
                                     19 and 26.
3060-0473.........................  Sec. 74.1251........        12/31/02
3060-0474.........................  Sec. 74.1263........        04/30/03
3060-0475.........................  Sec. 90.713.........        05/31/02
3060-0481.........................  FCC 452R............        08/31/03
3060-0483.........................  Sec. 73.687.........        07/31/03
3060-0484.........................  Sec. 63.100.........        01/31/02
3060-0488.........................  Sec. 73.30..........        02/29/04
3060-0489.........................  Sec. 73.37..........        02/29/04
3060-0490.........................  Sec. 74.902.........        03/31/04
3060-0491.........................  Sec. 74.991.........        03/31/04
3060-0492.........................  Sec. 74.992.........        02/29/04
3060-0493.........................  Sec. 74.986.........        02/29/04
3060-0494.........................  Sec. 74.990.........        02/29/04
3060-0496.........................  FCC Report 43-08....        03/31/02
3060-0500.........................  Sec. 76.1713........     Pending OMB
                                                                Approval
3060-0501.........................  Secs. 76.206 and               (\1\)
                                     76.1611.
3060-0502.........................  Sec. 73.1942........           (\1\)
3060-0506.........................  FCC 302-FM..........        12/31/02
3060-0508.........................  Rewrite of Part 22..        08/31/04
3060-0511.........................  FCC Report 43-04....        11/30/03
3060-0512.........................  FCC Report 43-01....        11/30/03
3060-0513.........................  FCC Report 43-03....        11/30/03
3060-0514.........................  Sec. 43.21(b).......        05/31/03
3060-0515.........................  Sec. 43.21(c).......        10/31/02
3060-0519.........................  Rules and                   12/31/01
                                     Regulations
                                     Implementing the
                                     Telephone Consumer
                                     Protection Act of
                                     1991, CC Docket No.
                                     92-60.
3060-0526.........................  Density Pricing Zone        10/31/02
                                     Plans, Expanded
                                     Interconnection
                                     with Local
                                     Telephone Company
                                     Facilities, CC
                                     Docket No. 91-141.
3060-0531.........................  Local Multipoint            10/31/03
                                     Distribution
                                     Service (LMDS).
3060-0532.........................  Secs. 2.1033(b)(11)         08/31/02
                                     and 15.121.
3060-0537.........................  Sec. 13.217.........        05/31/02
3060-0540.........................  Tariff Filing               05/31/02
                                     Requirements for
                                     Nondominant Common
                                     Carriers.
3060-0543.........................  Sec 21.913..........        09/30/02
3060-0544.........................  Sec. 76.701.........        12/31/03
3060-0546.........................  Definition of               03/31/03
                                     Markets for
                                     Purposes of the
                                     Cable Television
                                     Mandatory
                                     Television
                                     Broadcast Signal
                                     Carriage Rules.
3060-0548.........................  Secs. 76.56,                10/31/01
                                     76.1614, 76.1620,
                                     76.1708, and
                                     76.1709.
3060-0550.........................  FCC 328.............        10/31/02
3060-0551.........................  Secs. 76.1002 and           10/31/03
                                     76.1004.
3050-0554.........................  Sec. 87.199.........        06/30/02
3060-0556.........................  Sec. 80.1061........        06/30/02
3060-0560.........................  Sec. 76.911.........           (\1\)
3060-0561.........................  Sec. 76.913.........        10/31/03
3060-0562.........................  Sec. 76.916.........        07/31/04
3060-0564.........................  Sec. 76.924.........        12/31/02
3060-0565.........................  Sec. 76.944.........        10/31/03
3060-0567.........................  Sec. 76.962.........        02/28/02
3060-0568.........................  Commercial Leased           06/30/03
                                     Access Rates,
                                     Terms, & Conditions.
3060-0569.........................  Sec. 76.975.........        06/30/03
3060-0570.........................  Sec. 76.982.........        07/31/04
3060-0572.........................  Filing Manual for           10/31/02
                                     Annual
                                     International
                                     Circuit Status
                                     Reports.
3060-0573.........................  FCC 394.............        12/31/02
3060-0574.........................  FCC 395-M...........        04/30/03
3060-0580.........................  Sec. 76.504.........        08/31/03
3060-0581.........................  Sec. 76.503.........        05/31/03
3060-0584.........................  FCC 44 and FCC 45...        12/31/02
3060-0589.........................  FCC 159 and FCC 159-        08/31/03
                                     C.
3060-0594.........................  FCC 1220............        06/30/04
3060-0595.........................  FCC 1210............           (\1\)
3060-0599.........................  Implementation of           01/31/04
                                     Sections 3(n) and
                                     332 of the
                                     Communications Act.
3060-0600.........................  FCC 175 and FCC 175-        04/30/04
                                     S.
3060-0601.........................  FCC 1200............        06/30/04
3060-0602.........................  Sec. 76.917.........        04/30/03

[[Page 453]]

 
3060-0607.........................  Sec. 76.922.........        10/31/03
3060-0609.........................  Sec. 76.934(e)......        07/31/04
3060-0610.........................  Sec. 76.1606........        07/31/04
3060-0611.........................  Sec. 74.783.........        08/31/03
3060-0613.........................  Expanded                    08/31/03
                                     Interconnection
                                     with Local
                                     Telephone Company
                                     Facilities, CC
                                     Docket No. 91-141,
                                     Transport Phase II.
3060-0621.........................  Rules and                   04/30/04
                                     Requirements for C
                                     & F Block Broadband
                                     PCS Licenses.
3060-0624.........................  Sec. 24.103(f)......        04/30/04
3060-0625.........................  Amendment of the            03/31/04
                                     Commission's Rules
                                     to Establish New
                                     Personal
                                     Communications
                                     Services under Part
                                     24.
3060-0626.........................  Regulatory Treatment        05/31/04
                                     of Mobile Services.
3060-0627.........................  FCC 302-AM..........        12/31/02
3060-0629.........................  Sec. 76.1605........        07/31/04
3060-0630.........................  Sec. 73.62..........        09/30/01
3060-0633.........................  Secs. 73.1230,              08/31/04
                                     74.165, 74.432,
                                     74.564, 74.664,
                                     74.765, 74.832,
                                     74.965 and 74.1265.
3060-0634.........................  Sec. 73.691.........        04/30/04
3060-0636.........................  Equipment                   10/31/02
                                     Authorization--
                                     Declaration of
                                     Compliance--
                                     Amendment of Parts
                                     2 and 15.
3060-0638.........................  Sec. 76.934(g)......        02/28/02
3060-0641.........................  FCC 218-I...........        10/31/02
3060-0644.........................  FCC 1230............        02/28/02
3060-0645.........................  Antenna                     04/30/02
                                     Registration, Part
                                     17.
3060-0647.........................  Annual Survey of            04/30/03
                                     Cable Industry
                                     Prices.
3060-0648.........................  Sec. 21.902.........        11/30/02
3060-0649.........................  Secs. 76.1601,              12/31/01
                                     76.1607, 76.1617,
                                     and 76.1708.
3060-0652.........................  Secs. 76.309,               10/31/01
                                     76.1602, 76.1603,
                                     and 76.1619.
3060-0653.........................  Consumer Information-       01/31/02
                                     -Posting by
                                     Aggregators, Secs.
                                     64.703(b) and (c).
3060-0654.........................  FCC 304.............        10/31/01
3060-0655.........................  Request for Waivers            (\1\)
                                     of Regulatory and
                                     Application Fees
                                     Predicated on
                                     Allegations of
                                     Financial Hardship.
3060-0656.........................  FCC 175-M...........        11/30/01
3060-0657.........................  Sec. 21.956.........        09/30/01
3060-0658.........................  Sec. 21.960.........        11/30/01
3060-0660.........................  Sec. 21.937.........        09/30/01
3060-0661.........................  Sec. 21.931.........        10/31/01
3060-0662.........................  Sec. 21.930.........        09/30/01
3060-0663.........................  Sec. 21.934.........        09/30/02
3060-0664.........................  FCC 304-A...........        10/31/01
3060-0665.........................  Sec. 64.707.........        01/31/02
3060-0667.........................  Secs. 76.630,               10/31/01
                                     76.1612, and
                                     76.1622.
3060-0668.........................  Sec. 76.936.........        03/31/02
3060-0669.........................  Sec. 76.946.........        05/31/02
3060-0673.........................  Sec. 76.956.........        03/31/02
3060-0674.........................  Secs. 76.1603 and           06/30/02
                                     76.1618.
3060-0678.........................  FCC 312, FCC 312-EZ,        02/29/04
                                     FCC 312-R, FCC 312-
                                     M, and FCC-312
                                     Schedules.
3060-0681.........................  Toll-Free Service           09/30/03
                                     Access Codes, Part
                                     52, Subpart D,
                                     Secs. 52.101--
                                     52.111.
3060-0683.........................  Direct Broadcast            10/31/03
                                     Satellite Service,
                                     Part 100.
3060-0684.........................  Amendment to the            01/31/04
                                     Commission's Rules
                                     Regarding a Plan
                                     for Sharing the
                                     Costs of Microwave
                                     Relocation, WT
                                     Docket No. 95-157.
3060-0685.........................  FCC 1240............        08/31/04
3060-0686.........................  Streamlining the            03/31/04
                                     International
                                     Section 214
                                     Authorization
                                     Process and Tariff
                                     Requirements.
3060-0687.........................  Access to                   05/31/02
                                     Telecommunications
                                     Equipment and
                                     Services by Persons
                                     with Disabilities.
3060-0688.........................  FCC 1235............        07/31/02
3060-0690.........................  Rules Regarding the         12/31/02
                                     37.0--38.6 GHz and
                                     38.6-40.0 GHz Bands.
3060-0691.........................  Amendment of Parts 2        04/30/04
                                     and 90 of the
                                     Commission's Rules
                                     to Provide for the
                                     Use of 200 Channels
                                     Outside the
                                     Designated Filing
                                     Areas in the 896-
                                     901 MHz Bands
                                     Allotted to
                                     Specialized Mobile
                                     Radio Service.
3060-0692.........................  Home Wiring                 05/31/04
                                     Provisions.
3060-0695.........................  Sec. 87.219.........        03/31/02
3060-0697.........................  Parts 22 and 90 to          10/31/03
                                     Facilitate Future
                                     Development of
                                     Paging Systems.
3060-0698.........................  Amendment of the            05/31/04
                                     Commission's Rules
                                     to Establish a
                                     Radio Astronomy
                                     Coordination Zone
                                     in Puerto Rico.
3060-0700.........................  FCC 1275............        12/31/03
3060-0702.........................  Amendment to Parts          03/31/04
                                     20 and 24 of the
                                     Commission's Rules,
                                     Broadband PCS
                                     Competitive Bidding
                                     and the Commercial
                                     Mobile Radio
                                     Service Spectrum
                                     Cap.

[[Page 454]]

 
3060-0703.........................  FCC 1205............        11/30/02
3060-0704.........................  Public Disclosure           09/30/02
                                     Requirement
                                     Amended, CC Docket
                                     No. 96-61.
3060-0706.........................  Cable Act Reform....        06/30/02
3060-0707.........................  Over-the Air                05/31/02
                                     Reception Devices.
3060-0710.........................  Policy and Rules            08/31/03
                                     Concerning the
                                     Implementation of
                                     the Local
                                     Competition
                                     Provisions in the
                                     Telecommunications
                                     Act of 1996--CC
                                     Docket No. 96-98.
3060-0711.........................  Implementation of           12/31/03
                                     Section 34(a)(1) of
                                     the Public Utility
                                     Holding Company Act
                                     of 1935, as amended
                                     by the
                                     Telecommunications
                                     Act of 1996, Secs.
                                     1.5001 through
                                     1.5007.
3060-0713.........................  Alternative                 08/31/02
                                     Broadcast
                                     Inspection Program
                                     (ABIP) Compliance
                                     Notification.
3060-0714.........................  Antenna Registration        11/30/02
                                     Number Required as
                                     Supplement to
                                     Application Forms.
3060-0715.........................  Implementation of              (\1\)
                                     the
                                     Telecommunications
                                     Act of 1996:
                                     Telecommunications
                                     Carriers' Use of
                                     Customer
                                     Proprietary Network
                                     Information and
                                     Other Customer
                                     Information--CC
                                     Docket No. 96-115.
3060-0716.........................  Blanketing                  04/30/03
                                     Interference.
3060-0717.........................  Billed Party                07/31/04
                                     Preference for
                                     InterLATA Calls,
                                     Secs. 64.703(a),
                                     64.709, and 64.710.
3060-0718.........................  Part 101 Governing          10/31/02
                                     the Terrestrial
                                     Microwave Fixed
                                     Radio Service.
3060-0719.........................  Quarterly Report of         10/31/03
                                     IntraLATA Carriers
                                     Listing Pay Phone
                                     Automatic Number
                                     Identifications
                                     (ANIs).
3060-0723.........................  Public Disclosure of        09/30/03
                                     Network Information
                                     by Bell Operating
                                     Companies.
3060-0725.........................  Annual Filing of            08/31/03
                                     Nondiscrimination
                                     Reports (on Quality
                                     of Service,
                                     Installation, and
                                     Maintenance) by
                                     Bell Operating
                                     Companies (BOC's).
3060-0726.........................  Quarterly Report of         08/31/03
                                     Interexchange
                                     Carriers Listing
                                     the Number of Dial-
                                     Around Calls for
                                     Which Compensation
                                     is Being Paid to
                                     Pay Phone Owners.
3060-0727.........................  Sec. 73.213.........        11/30/03
3060-0728.........................  Supplemental                08/31/03
                                     Information
                                     Requesting FCC
                                     Registration Number
                                     (FRN) for Debt
                                     Collection.
3060-0732.........................  Consumer Education          04/30/03
                                     Concerning Wireless
                                     911.
3060-0734.........................  Accounting                  06/30/03
                                     Safeguards, 47
                                     U.S.C. Sections
                                     260, 271-276, and
                                     47 CFR Secs.
                                     53.209, 53.211 and
                                     53.213, SEC Form 10-
                                     K.
3060-0736.........................  Implementation of              (\1\)
                                     the Non-Accounting
                                     Safeguards of
                                     Sections 271 and
                                     272 of the
                                     Communications Act
                                     of 1934, as amended-
                                     -CC Docket No. 96-
                                     149.
3060-0737.........................  Disclosure                  03/31/03
                                     Requirements for
                                     Information
                                     Services Provided
                                     Under a
                                     Presubscription or
                                     Comparable
                                     Arrangement.
3060-0739.........................  Amendment of the            01/31/02
                                     Commission's Rules
                                     to Establish
                                     Competitive
                                     Safeguards for
                                     Local Exchange
                                     Carrier Provisions
                                     of Commercial
                                     Mobile Radio
                                     Services.
3060-0740.........................  Sec. 95.1015........        11/30/02
3060-0741.........................  Implementation of           04/30/04
                                     the Local
                                     Competition
                                     Provisions on the
                                     Telecommunications
                                     Act of 1996--CC
                                     Docket No. 96-98.
3060-0742.........................  Telephone Number            09/30/03
                                     Portability, Part
                                     52, Subpart C,
                                     Secs. 52.21--52.33.
3060-0743.........................  Implementation of           10/31/03
                                     the Pay Telephone
                                     Reclassification
                                     and Compensation
                                     Provisions of the
                                     Telecommunications
                                     Act of 1996--CC
                                     Docket No. 96-128.
3060-0745.........................  Implementation of           12/31/03
                                     the Local Exchange
                                     Carrier Tariff
                                     Streamlining
                                     Provisions, CC
                                     Docket No. 96-187.
3060-0748.........................  Disclosure                  07/31/03
                                     Requirements for
                                     Information
                                     Services Provided
                                     through Toll-Free
                                     Numbers, Sec.
                                     64.1504.
3060-0749.........................  Sec. 64.1509........        07/31/03
3060-0750.........................  Sec. 73.673.........        05/31/03
3060-0751.........................  Reports Concerning          05/31/03
                                     International
                                     Private Lines
                                     Interconnected to
                                     the U.S. Public
                                     SwitchedNetwork.
3060-0752.........................  Billing Disclosure          07/31/03
                                     Requirements for
                                     Pay-Per-Call and
                                     Other Information
                                     Services, Sec.
                                     64.1510.
3060-0754.........................  FCC 398.............        06/30/04
3060-0755.........................  Infrastructure              05/31/03
                                     Sharing, Secs. 59.1-
                                     -59.4.
3060-0756.........................  Procedural                  10/31/01
                                     Requirements and
                                     Policies for
                                     Commission
                                     Processing of Bell
                                     Operating Company
                                     (BOC) Applications
                                     for the Provision
                                     of In-Region,
                                     InterLATA Services
                                     under Section 271
                                     of the
                                     Telecommunications
                                     Act of 1996.
3060-0757.........................  FCC Auctions                01/31/04
                                     Customer Survey.
3060-0758.........................  Amendment of Part 5         06/30/03
                                     of the Commission's
                                     Rules to Revise the
                                     Experimental Radio
                                     Service
                                     Regulations, ET
                                     Docket No. 96-256.
3060-0760.........................  Access Charge Reform-       10/31/02
                                     -CC Docket No. 96-
                                     262.
3060-0761.........................  Closed Captioning of        02/29/04
                                     Video Programming.
3060-0763.........................  FCC Report 43-06....        03/31/02

[[Page 455]]

 
3060-0765.........................  Revision of Parts 22        10/31/03
                                     and 90 of the
                                     Commission's Rules
                                     to Facilitate
                                     Future Development
                                     of Paging Systems.
3060-0767.........................  Auction Forms and           04/30/04
                                     License Transfer
                                     Disclosures--
                                     Supplement for the
                                     2nd R&O, Order on
                                     Reconsideration,
                                     and 5th NPRM in CC
                                     Docket No. 92-297.
3060-0768.........................  28 GHz Band                 06/30/03
                                     Segmentation Plan
                                     Amending the
                                     Commission's Rules
                                     to Redesignate the
                                     27.5--29.5 GHz
                                     Frequency Band, to
                                     Reallocate the 29.5-
                                     -30.0 GHz Frequency
                                     Band, and to
                                     Establish Rules and
                                     Policies for Local
                                     Multipoint
                                     Distribution
                                     Services and for
                                     the Fixed Satellite
                                     Service.
3060-0769.........................  Aeronautical                06/30/03
                                     Services Transition
                                     Plan.
3060-0770.........................  Price Cap                   10/31/02
                                     Performance Review
                                     for Local Exchange
                                     Carriers--CC Docket
                                     No. 94-1 (New
                                     Services).
3060-0771.........................  Sec. 5.61, Procedure        12/21/03
                                     for Obtaining a
                                     Special Temporary
                                     Authorization in
                                     the Experimental
                                     Radio Service.
3060-0773.........................  Sec. 2.803,                 09/30/03
                                     Marketing of RF
                                     Devices Prior to
                                     Equipment
                                     Authorization.
3060-0774.........................  Federal-State Joint         06/30/04
                                     Board on Universal
                                     Service--CC Docket
                                     No. 96-45, Secs.
                                     36.611 and 36.612
                                     and 47 CFR Part 54.
3060-0775.........................  Secs. 64.1901--             09/30/03
                                     64.1903.
3060-0779.........................  Amendment to Part 90        04/30/04
                                     of the Commission's
                                     Rules to Provide
                                     for Use of the 220-
                                     222 MHz Band by the
                                     Private Land Mobile
                                     Radio Service, PR
                                     Docket No. 89-552.
3060-0780.........................  Uniform Rate-Setting        11/30/03
                                     Methodology.
3060-0782.........................  Petitions for               01/31/04
                                     Limited
                                     Modification of
                                     LATA Boundaries to
                                     Provide Expanded
                                     Local Calling
                                     Service (ELCS) at
                                     Various Locations.
3060-0783.........................  Coordination                01/31/04
                                     Notification
                                     Requirements on
                                     Frequencies Below
                                     512 MHz, Sec.
                                     90.176.
3060-0786.........................  Petitions for LATA          01/31/04
                                     Association Changes
                                     by Independent
                                     Telephone Companies.
3060-0787.........................  Implementation of              (\1\)
                                     the Subscriber
                                     Carrier Selection
                                     Changes Provisions
                                     of the
                                     Telecommunications
                                     Act of 1996;
                                     Policies and Rules
                                     Concerning
                                     Unauthorized
                                     Changes of
                                     Consumers Long
                                     Distance, FCC 478.
3060-0788.........................  DTV Showings/              08/31/01?
                                     Interference
                                     Agreements.
3060-0789.........................  Modified Alternative        05/31/04
                                     Plan, CC Docket No.
                                     90-571.
3060-0790.........................  Availability of             11/30/03
                                     Inside Wiring
                                     Information, Sec.
                                     68.110(c).
3060-0791.........................  Accounting for              11/30/03
                                     Judgments and Other
                                     Costs Associated
                                     with Litigation, CC
                                     Docket No. 93-240.
3060-0793.........................  Procedures for              08/31/02
                                     States Regarding
                                     Lifeline Consent,
                                     Adoption of
                                     Intrastate Discount
                                     Matrix for Schools
                                     and Libraries, and
                                     Designation of
                                     Eligible
                                     Telecommunications
                                     Carriers.
3060-0795.........................  ULS TIN Registration        08/31/02
                                     and FCC 606.
3060-0798.........................  FCC 601.............        03/31/04
3060-0799.........................  FCC 602.............        02/28/02
3060-0800.........................  FCC 603.............        01/31/02
3060-0801.........................  Amendment of the            08/31/02
                                     Commission's Rules
                                     Regarding
                                     Installment Payment
                                     Financing for
                                     Personal
                                     Communications
                                     Services (PCS)
                                     Licenses, WT Docket
                                     No. 97-82.
3060-0802.........................  Message Intercept           11/30/01
                                     Requirement.
3060-0804.........................  Health Care                    (\1\)
                                     Providers Universal
                                     ServiceProgram--FCC
                                     465, FCC 466, FCC
                                     466-A, FCC 467, and
                                     FCC 468.
3060-0805.........................  Sec. 90.527.........        12/31/01
3060-0806.........................  Universal Service,          03/31/04
                                     Schools and
                                     Libraries Program,
                                     FCC 470 and 471.
3060-0807.........................  47 CFR 51.803 and           04/30/04
                                     Supplemental
                                     Procedures for
                                     Petitions to
                                     Section 252(e)(5)
                                     of the
                                     Communications Act
                                     of 1934, as amended.
3060-0809.........................  Communications              04/30/03
                                     Assistance for Law
                                     Enforcement Act
                                     (CALEA).
3060-0810.........................  Procedures for              03/31/04
                                     Designation of
                                     Eligible
                                     Telecommunications
                                     Carriers Pursuant
                                     to Section
                                     214(e)(6) of the
                                     Communications Act
                                     of 1934, as amended.
3060-0812.........................  Assessment and              08/31/02
                                     Collection of
                                     Regulatory Fees.
3060-0813.........................  Revision of the             07/31/04
                                     Commission's Rules
                                     to Ensure
                                     Compatibility with
                                     Enhanced 911
                                     Calling Systems.
3060-0814.........................  Local Switching             09/30/01
                                     Support and Local
                                     Switching Support
                                     Data Collection
                                     Form and
                                     Instructions, Sec.
                                     54.301.
3060-0816.........................  Local Competition           11/30/03
                                     and Broadband
                                     Reporting, CC
                                     Docket No. 99-301.
3060-0817.........................  Computer III Further        08/31/03
                                     Remand Proceedings:
                                     BOC Provision of
                                     Enhanced Services
                                     (ONA Requirements),
                                     CC Docket No. 95-20.
3060-0819.........................  Lifeline Assistance         05/31/04
                                     (Lifeline)
                                     Connection
                                     Assistance (Link
                                     Up) Reporting
                                     Worksheet and
                                     Instructions, 47
                                     CFR 54.400--54.417,
                                     FCC 497.
3060-0820.........................  Transfers of Control        09/30/01
                                     Involving
                                     Telecommunications
                                     Carriers.
3060-0823.........................  Pay Telephone               12/31/01
                                     Reclassification,
                                     Memorandum Opinion
                                     and Order, CC
                                     Docket No. 96-128.

[[Page 456]]

 
3060-0824.........................  FCC 498.............           (\1\)
3060-0827.........................  Request for Radio           09/30/01
                                     Station License
                                     Update.
3060-0833.........................  Implementation of              (\1\)
                                     Section 255 of the
                                     Telecommunications
                                     Act of 1996:
                                     Complaint Filings/
                                     Designation of
                                     Agents.
3060-0834.........................  Reconsideration of          12/31/01
                                     Rules and Policies
                                     for the 220-222 MHz
                                     Radio Service.
3060-0835.........................  Ship Inspection             03/31/02
                                     Certificates, FCC
                                     806, FCC824, FCC
                                     827 and FCC 829.
3060-0837.........................  FCC 302-DTV.........        05/31/03
3060-0840.........................  Access Charge Reform        09/30/01
                                     for Incumbent Local
                                     Exchange Carriers
                                     Subject to Rate-of-
                                     Return Regulation--
                                     CC Docket No. 98-77.
3060-0841.........................  Public Notice,              04/30/02
                                     Additional
                                     Processing
                                     Guidelines for DTV.
3060-0844.........................  Carriage of the             10/31/01
                                     Transmissions of
                                     Digital Television
                                     Broadcast Stations.
3060-0848.........................  Deployment of               05/31/04
                                     Wireline Services
                                     Offering Advanced
                                     Telecommunications
                                     Capability--CC
                                     Docket No. 98-147.
3060-0849.........................  Commercial                  10/31/01
                                     Availability of
                                     Navigation Devices.
3060-0850.........................  FCC 605.............        06/30/04
3060-0851.........................  FCC 305.............        12/31/01
3060-0852.........................  FCC 306.............        12/31/01
3060-0853.........................  FCC 486, FCC 500,           12/31/01
                                     and FCC 479.
3060-0854.........................  Truth-in-Billing            03/31/04
                                     Format, CC Docket
                                     No. 98-170.
3060-0855.........................  FCC 499, FCC 499-Q..        07/31/04
3060-0856.........................  FCC 472, FCC 473,           05/31/02
                                     FCC 474.
3060-0857.........................  Annual Reporting            12/31/01
                                     Requirement for
                                     Blanket Licensing
                                     of Ka-band
                                     Satellite Earth
                                     Station.
3060-0858.........................  State Public Safety         01/31/02
                                     Plan Requirements
                                     and Year 2000
                                     Readiness.
3060-0859.........................  Suggested Guidelines        04/30/03
                                     for Petitions for
                                     Ruling under
                                     Section 253 of the
                                     Communications Act.
3060-0862.........................  Handling                    05/31/02
                                     Confidential
                                     Information.
3060-0863.........................  Satellite Delivery          07/31/02
                                     of Network Signals
                                     to Unserved
                                     Households for
                                     Purposes of the
                                     Satellite Home
                                     Viewer Act.
3060-0864.........................  Data to Determine           02/28/02
                                     Percentage of
                                     Interstate
                                     Telecommunications
                                     Revenues from
                                     Wireless Carriers
                                     and Submission of
                                     Data to Determine
                                     Eligibility.
3060-0865.........................  Wireless                    10/31/03
                                     Telecommunications
                                     Bureau Universal
                                     Licensing System
                                     Recordkeeping and
                                     Third-Party
                                     Disclosure
                                     Requirements.
3060-0867.........................  Request for Waiver          07/31/02
                                     of Section 20.18(c)
                                     of theCommission's
                                     Rules Regarding
                                     Compatibility with
                                     Enhanced 911
                                     Emergency Calling
                                     Systems.
3060-0874.........................  FCC 475.............           (\1\)
3060-0876.........................  USAC Board of               04/30/03
                                     Directors
                                     Nomination Process,
                                     Sec. 54.703 and
                                     Review of
                                     Administrator's
                                     Decision, Secs.
                                     54.719--54.725.
3060-0878.........................  Wireless E911 Rule          08/31/02
                                     Waivers for Handset-
                                     Based Approaches to
                                     Phase II ALI
                                     Requirements.
3060-0881.........................  Sec. 95.861.........        04/30/02
3060-0882.........................  Sec. 95.833.........        12/31/02
3060-0886.........................  Sec. 73.3534........        05/31/02
3060-0888.........................  Cable Television            06/30/02
                                     Service Pleading
                                     and Complaint Rules-
                                     -Part 76.
3060-0891.........................  FCC 330-A...........        07/31/02
3060-0892.........................  Direct Broadcast            07/31/02
                                     Satellite Public
                                     Interest
                                     Obligations.
3060-0893.........................  Universal Licensing         09/30/03
                                     Service (ULS) Pre-
                                     Auction Database
                                     Corrections.
3060-0894.........................  Certification Letter        05/31/03
                                     Accounting for
                                     Receipt of Federal
                                     Support.
3060-0895.........................  Numbering Resource          01/31/04
                                     Optimization, FCC
                                     502.
3060-0896.........................  Broadcast Auction           07/31/02
                                     Form Exhibits.
3060-0897.........................  MDS and ITFS Two-Way        04/30/04
                                     Transmissions.
3060-0900.........................  Compatibility of            12/31/02
                                     Wireless Services
                                     with Enhanced 911--
                                     CC Docket No. 94-
                                     102.
3060-0901.........................  Reports of Common           04/30/03
                                     Carriers and
                                     Affiliates.
3060-0905.........................  Regulations for RF          11/30/02
                                     Lighting Devices,
                                     Part 18, Sec.
                                     18.307.
3060-0906.........................  FCC 317.............        08/31/03
3060-0910.........................  Revision of the             03/31/03
                                     Commission's Rules
                                     to Ensure
                                     Compatibility with
                                     Enhanced 911
                                     Emergency Calling
                                     Systems.
3060-0912.........................  Cable Attribution           04/30/03
                                     Rules.
3060-0914.........................  Petition, Pursuant          04/30/04
                                     to Section 7 of the
                                     Act, for a Waiver
                                     of the Airborne
                                     Cellular Rule, or
                                     in the Alternative,
                                     for a Declaratory
                                     Ruling.
3060-0915.........................  Public Notice--             03/31/03
                                     Information on
                                     Medical Telemetry
                                     Equipment Operating
                                     in the 450-460 MHz
                                     Band.
3060-0916.........................  406 MHz Personal            04/30/03
                                     Locator Beacons
                                     (PLB's).
3060-0917.........................  FCC 160.............        08/31/03
3060-0918.........................  FCC 161.............        08/31/03
3060-0919.........................  FCC 162.............        08/31/03
3060-0920.........................  FCC 318.............        10/31/03

[[Page 457]]

 
3060-0921.........................  Petitions for LATA          08/31/03
                                     Boundary
                                     Modification for
                                     the Deployment of
                                     Advanced Services.
3060-0922.........................  FCC 397.............        04/30/03
3060-0923.........................  Election Statement..        04/30/03
3060-0924.........................  Creation of Low             04/30/03
                                     Power Radio Service.
3060-0926.........................  Transfer of the             01/31/04
                                     Bands from Federal
                                     Government Use:
                                     NPRM.
3060-0927.........................  Auditor's Annual            05/31/03
                                     Independence and
                                     Objectivity
                                     Certification.
3060-0928.........................  FCC 302-CA..........        12/31/03
3060-0929.........................  FCC 331.............        02/29/04
3060-0930.........................  Implementation of           12/31/02
                                     the Satellite Home
                                     Viewer Improvement
                                     Act (SHVIA) of
                                     1999; Enforcement
                                     Procedures for
                                     Retransmission
                                     Consent Violations
                                     Conforming to
                                     Section 325(e) of
                                     the Communications
                                     Act of 1934, as
                                     amended.
3060-0931.........................  Maritime Mobile             06/30/03
                                     Service Indentity
                                     (MMSI).
3060-0932.........................  FCC 301-CA..........        11/30/03
3060-0933.........................  FCC 460.............        11/30/03
3060-0934.........................  FCC 731-TC..........        01/31/04
3060-0935.........................  Cable Industry               2/31/03
                                     Survey on Channel
                                     Capacity and
                                     Retransmission
                                     Consent.
3060-0936.........................  Sec. 95.1215,               07/31/03
                                     Disclosure
                                     Policies; Sec.
                                     95.1217, Labeling
                                     Requirements.
3060-0937.........................  Establishment of a          01/31/04
                                     Class A Television
                                     Service, MM Docket
                                     No. 00-10.
3060-0938.........................  FCC 319.............        07/31/03
3060-0939.........................  E911, Second                05/31/04
                                     Memorandum Opinion
                                     and Order.
3060-0940.........................  Amendment of Part 95        07/31/03
                                     of the Commission's
                                     Rulesto Provide
                                     Regulatory
                                     Flexibility in the
                                     218-219 MHz
                                     Service, WT Docket
                                     No. 98-169.
3060-0942.........................  Access Charge               01/31/04
                                     Reform, Price Cap
                                     Performance Review
                                     for Local Exchange
                                     Carriers, Low-
                                     Volume Long
                                     Distance Users,
                                     Federal-State Join
                                     Board on Universal
                                     Service.
3060-0943.........................  Sec. 54.809.........        12/31/03
3060-0944.........................  Review of Commission        08/31/03
                                     Consideration
                                     ofApplications
                                     Under the Cable
                                     Landing LicenseAct.
3060-0945.........................  Sec. 79.2...........        08/31/03
3060-0947.........................  Sec. 101.1327.......        09/30/03
3060-0948.........................  Noncommercial               01/31/04
                                     Educational
                                     Applicants.
3060-0949.........................  FCC 159-W...........        10/31/03
3060-0950.........................  Extending Wireless          04/30/04
                                     Telecommunications
                                     Servicesto Tribal
                                     Lands, WT Docket
                                     No. 99-266.
3060-0951.........................  Service of Petitions        01/31/04
                                     for Preemption, 47
                                     CFRSec. 1.1204(b)
                                     Note, and Sec.
                                     1.1206(a) Note 1.
3060-0952.........................  Proposed Demographic        10/31/03
                                     Information
                                     andNotifications.
3060-0953.........................  Wireless Medical            10/31/03
                                     Telemetry Service,
                                     ET DocketNo. 99-255.
3060-0954.........................  Third NPRM and NPRM         10/31/03
                                     Regarding
                                     Implementation of
                                     the 911 Act.
3060-0955.........................  2 GHz Mobile                02/29/04
                                     Satellite Service
                                     Reports.
3060-0956.........................  Notification of             11/30/03
                                     Emergency Alert
                                     System Status.
3060-0957.........................  Wireless Enhanced           05/31/04
                                     911 Service.
3060-0959.........................  Compatibility               05/31/04
                                     Between Cable
                                     Systems andConsumer
                                     Electronics
                                     Equipment.
3060-0960.........................  Application of                 (\1\)
                                     Network Non-
                                     Duplication,Syndica
                                     ted Exclusivity,
                                     and Sports
                                     BlackoutRules to
                                     Satellite
                                     Retransmissions.
3060-0961.........................  2000 Biennial               01/31/04
                                     Regulatory Review
                                     of theAccounting
                                     Requirements and
                                     ARMIS
                                     ReportingRequiremen
                                     ts for Incumbent
                                     Local
                                     ExchangeCarriers;
                                     Phase 2 and Phase
                                     3, CC Docket No.00-
                                     199.
3060-0962.........................  Redesignation of the        01/31/04
                                     18 GHz Frequency
                                     Band,Blanket
                                     Licensing of
                                     Satellite Earth
                                     Stations in the Ka-
                                     Band, and the
                                     Allocation of
                                     Additional Spectrum
                                     for Broadcast
                                     SatelliteService
                                     Use.
3060-0963.........................  Sec. 101.527,               02/29/04
                                     Construction
                                     Requirements for
                                     24GHz Operations;
                                     Sec. 101.529,
                                     RenewalExpectancy
                                     Criteria for 24 GHz
                                     Licensees.
3060-0966.........................  Secs. 80.385,               02/29/04
                                     80.475, and 97.303,
                                     AutomatedMarine
                                     Telecommunications
                                     Service (AMTS).
3060-0967.........................  Sec. 79.2...........        02/29/04
3060-0968.........................  FCC 501.............        07/31/04
3060-0969.........................  Availability to             02/29/04
                                     INTELSAT Space
                                     SegmentCapacity to
                                     Users and Providers
                                     Seeking to Access
                                     INTELSAT Directly.
3060-0970.........................  Sec. 90.621(e)(2)...        06/30/04
3060-0971.........................  Numbering Resource             (\1\)
                                     Optimization.
3060-0972.........................  Multi-Association           03/31/04
                                     Group (MAG) Plan
                                     forRegulation of
                                     Interstate Services
                                     of Non-PriceCap
                                     Incumbent Local
                                     Exchange Carriers
                                     andInterexchange
                                     Carriers.
3060-0973.........................  Sec. 64.1120(e).....        11/30/01
3060-0974.........................  Proposed                    04/30/04
                                     Requirements for
                                     Secondary
                                     MarketTransactions,
                                     CC Docket No. 99-
                                     200.

[[Page 458]]

 
3060-0975.........................  Promotion of                05/31/04
                                     Competitive
                                     Networks in
                                     LocalTelecommunicat
                                     ions Markets
                                     MultipleEnvironment
                                     s (47 CFR Parts 1,
                                     64 and 68).
3060-0977.........................  Procedures for              06/30/04
                                     Reviewing Requests
                                     for Relief from
                                     State and Local
                                     Regulations
                                     Pursuant to Section
                                     332(c)(7)(B)(v) of
                                     the Communications
                                     Act of 1934.
3060-0978.........................  Compatibility with          06/30/04
                                     E911 Emergency
                                     CallingSystems;
                                     Fourth Report and
                                     Order.
3060-0979.........................  Spectrum Audit              10/31/01
                                     Letter.
3060-0980.........................  Implementation of           06/30/04
                                     the Satellite Home
                                     ViewerImprovement
                                     Act (SHVIA),
                                     Broadcast
                                     SignalCarriage
                                     Issues,
                                     Retransmission
                                     Consent Issues.
3060-0981.........................  1998 Biennial               06/30/04
                                     Review:
                                     Streamlining of
                                     CableTelevision
                                     Services, Part 76,
                                     Public File
                                     andNotice
                                     Requirements.
3060-0982.........................  Implementation of           10/31/01
                                     Low Power
                                     Television
                                     (LPTV)Digital Data
                                     Services Pilot
                                     Project.
3060-0983.........................  Standards for Co-           07/31/04
                                     Channel and
                                     Adjacent
                                     ChannelInterference
                                     in the Land Mobile
                                     Radio Service.
3060-0984.........................  Secs. 90.35(b)(2)           07/31/04
                                     and 90.175(b)(1).
3060-0985.........................  Public Safety, State        07/31/04
                                     Interoperability
                                     Channels.
3060-0986.........................  Federal-State Joint         12/31/01
                                     Board on
                                     UniversalService,
                                     Plan for Reforming
                                     the RuralUniversal
                                     Support Mechanism.
3060-0988.........................  Election to Freeze          12/31/01
                                     part 36 Categories
                                     and Allocations.
3060-0989.........................  Procedures for              12/31/01
                                     Applicants
                                     Requiring
                                     Section214
                                     Authorization for
                                     Domestic
                                     InterstateTransmiss
                                     ion Lines Acquired
                                     Through
                                     CorporateControl.
3060-0991.........................  AM Measurement Data.        01/31/02
3060-0992.........................  Request for                 01/31/02
                                     Extension of the
                                     ImplementationDeadl
                                     ine for Non-
                                     Recurring Services,
                                     CC DocketNo. 96-45
                                     and Sec.
                                     54.507(d)(1)-(4).
3060-0993.........................  Establishment of a          02/28/02
                                     Class A Television
                                     Service.
------------------------------------------------------------------------
\1\Pending OMB approval.

[66 FR 48973, Sept. 25, 2001]

[[Page 459]]



List of CFR Sections Affected



All changes in this volume of the Code of Federal Regulations which were 
made by documents published in the Federal Register since January 1, 
2001, are enumerated in the following list. Entries indicate the nature 
of the changes effected. Page numbers refer to Federal Register pages. 
The user should consult the entries for chapters and parts as well as 
sections for revisions.
For the period before January 1, 2001, see the ``List of CFR Sections 
Affected, 1949-1963, 1964-1972, 1973-1985, and 1986-2000'' published in 
11 separate volumes.

                                  2001

47 CFR
                                                                   66 FR
                                                                    Page
Chapter I
42.10  (a) revised.................................................16879
42.11  (a) revised.................................................16879
43.51  Revised.....................................................16879
43.61  (a)(1) revised..............................................67112
51  Actions on petitions......................................2335, 9035
51.5  Amended......................................................43521
51.321  (h) revised................................................43521
51.323  (b), (c), (e), (f) introductory text, (h), (i) 
        introductory text and (k)(2) revised; (f)(7), (i)(4), (5) 
        and (6) added..............................................43521
51.701--51.717 (Subpart H)  Heading revised........................26806
51.701  (a), (c), (d) and (e) amended; (b) revised.................26806
51.703  Amended....................................................26806
51.705  Amended....................................................26806
51.707  Amended....................................................26806
51.709  Amended....................................................26806
51.711  Amended....................................................26806
51.713  Amended....................................................26806
51.715  Amended....................................................26806
51.717  Amended....................................................26806
51.807  (f)(3) revised..............................................8520
52  Actions on petitions............................................9674
52.15  (f)(1)(vi), (3)(ii) and (g)(3)(iv) revised; (g)(4), (h) and 
        (k) added; (OMB numbers pending)............................9531
    OMB number.....................................................11236
52.16  (a) revised..................................................9532
52.20  (c) revised..................................................9532
52.111  Added; CFR Correction......................................47591
53  Order..........................................................36206
54  Actions on petitions......................16144, 64775, 65856, 67112
    OMB approval notice............................................19098
54.5  Amended...............................................30087, 59726
54.305  Existing text designated as (a); (b) through (f) added 
        (OMB number pending).......................................30087
    OMB number.....................................................34581
54.307  (a)(1) revised; (b) and (c) introductory text amended (OMB 
        number pending)............................................30087
    OMB number.....................................................34581
    (a)(1) and (b) amended; (c) revised (OMB number pending).......59726
54.313  (b) and (c) redesignated as (c) and (d); heading and new 
        (c) revised; new (b) added; new (d) amended (OMB number 
        pending)...................................................30088
    OMB number.....................................................34581
54.314  Added (OMB number pending).................................30088
    OMB number.....................................................34581
54.315  Added (OMB number pending).................................30089
    OMB number.....................................................34581
    Heading, (a), (b)(4), (c)(5), (e)(1), (4) through (7) and 
(f)(1) through (4) revised (OMB number pending)....................59727
54.507  (d) revised; (OMB number pending)..........................38378
    OMB number.....................................................41149
54.520  Added......................................................19396
    (c)(2)(iii)(A), (B), (C), (3)(i), (ii) and (f) corrected.......22133
54.701  (g)(1)(iii) revised........................................59727

[[Page 460]]

54.702  (a) revised; (i) amended...................................59727
54.705  (c)(1) introductory text, (i), (ii), (iv) and (v) revised 
                                                                   59728
54.707  Correctly added; CFR correction............................30334
54.709  (a)(3) amended.............................................16151
54.711  (a) amended................................................16151
54.715  (c) amended................................................59728
54.901--54.904 (Subpart K)  Added..................................59728
54.902  OMB number pending.........................................59728
54.903  OMB number pending.........................................59728
54.904  OMB number pending.........................................59728
61.1  (b) revised; eff. 12-3-01....................................47896
61.3  (y) revised..................................................16881
61.15  (a)(3) amended; (a)(4) added; eff. 12-3-01..................47896
61.19  Revised.....................................................16881
61.21  (a)(3) added; eff. 12-3-01..................................47896
61.26  Added.......................................................27900
    (c) corrected..................................................28774
61.28  Revised.....................................................16881
61.33  (a)(3) and (4) amended; (a)(5) added; eff. 12-3-01..........47896
61.74  (d) removed; (e) and (f) redesignated as (d) and (e)........16881
63  Policy statement...............................................41801
63.10  (c)(1) removed; (c)(2) through (6) redesignated as (c)(1) 
        through (5)................................................16881
63.14  (c) revised.................................................16881
63.17  (b)(3) revised..............................................16881
63.21  (b) and (c) revised.........................................16881
63.24  (b) revised.................................................67112
63.52  Heading revised.............................................67112
64  Actions on petitions............................................9674
    Technical correction...........................................30334
    Compliance date extended.......................................50841
    Clarification..................................................53545
64.601  Amended....................................................54165
64.603  Introductory text revised..................................54165
    Introductory text correctly revised............................67114
64.702  (e) revised................................................19402
64.1001  (b) revised...............................................16882
64.1100  (h) added.................................................12892
64.1120  (c)(1) and (3) revised; (d) added.........................12892
    (e) added (OMB number pending).................................28124
    OMB number.....................................................33208
64.1130  (a), (b), (c) and (e)(5) revised; (i) and (j) added (OMB 
        numbers pending)...........................................12893
    (e)(5) correctly designated....................................16151
    OMB number.....................................................17083
64.1180  Added (OMB numbers pending)...............................12893
    OMB number.....................................................17083
64.1190  (d)(1)(ii), (2)(i), (3)(i) and (e)(1) revised (OMB 
        numbers pending)...........................................12893
    OMB number.....................................................17083
64.1195  Added (OMB numbers pending)...............................12894
    OMB number.....................................................17083
64.1300  (a) revised...............................................21106
64.1310  (a) and (b) revised.......................................21106
64.2005  Regulation at 64 FR 53264 eff. 3-2-00......................7865
64.2007  Regulation at 64 FR 53264 eff. 3-2-00......................7865
64.2009  Regulation at 64 FR 53264 eff. 3-2-00......................7865
64.2103  Revised...................................................22448
    Corrected; CFR correction......................................36711
64.2104  (a)(1)(ii) revised........................................22448
    Corrected; CFR correction......................................36711
64.2105  Corrected; CFR correction.................................36711
64.2500--64.2502 (Subpart Z)  Added.................................2334
68  Effective date announcement....................................23625
68.2  Revised.......................................................7580
68.3  Amended (OMB number pending)..................................2335
    Revised (OMB number pending)....................................7581
    OMB number.....................................................28841
68.7  Added.........................................................7581
68.100  Revised.....................................................7581
68.102  Revised.....................................................7582
68.104  Removed.....................................................7582
68.105  Added (OMB number pending)..................................7582
    OMB number.....................................................28841
68.106  Revised.....................................................7582
    Regulation at 66 FR 7582 effective date corrected..............42780
68.108  Introductory text revised...................................7583
    Regulation at 66 FR 7583 effective date corrected..............42780
68.110  Revised.....................................................7583
    Regulation at 66 FR 7583 effective date corrected..............42780
68.162  (g)(4) revised.............................................27601
68.200--68.226 (Subpart C)  Heading revised.........................7583

[[Page 461]]

    Regulation at 66 FR 7583 effective date corrected..............42780
68.200  Removed.....................................................7583
    Regulation at 66 FR 7583 effective date corrected..............42780
68.201  Added.......................................................7583
    Regulation at 66 FR 7583 effective date corrected..............42780
68.202  Removed.....................................................7583
    Regulation at 66 FR 7583 effective date corrected..............42780
68.204  Removed.....................................................7583
    Regulation at 66 FR 7583 effective date corrected..............42780
68.206  Removed.....................................................7583
    Regulation at 66 FR 7583 effective date corrected..............42780
68.208  Removed.....................................................7583
    Regulation at 66 FR 7583 effective date corrected..............42780
68.210  Removed.....................................................7583
    Regulation at 66 FR 7583 effective date corrected..............42780
68.211  Revised.....................................................7583
    Regulation at 66 FR 7583 effective date corrected..............42780
68.212  Removed.....................................................7583
    Regulation at 66 FR 7583 effective date corrected..............42780
68.213  (b) revised.................................................7583
    Regulation at 66 FR 7583 effective date corrected..............42780
68.214  Revised.....................................................7584
    Regulation at 66 FR 7584 effective date corrected..............42780
68.215  (a)(2), (3), (e)(9), (f)(4), and (g) revised; (d)(2) note 
        removed; (d)(5) amended.....................................7584
    Regulation at 66 FR 7584 effective date corrected..............42780
68.216  Removed.....................................................7585
    Regulation at 66 FR 7585 effective date corrected..............42780
68.218  Revised.....................................................7585
    Regulation at 66 FR 7585 effective date corrected..............42780
68.220  Removed.....................................................7585
    Regulation at 66 FR 7585 effective date corrected..............42780
68.226  Removed.....................................................7585
    Regulation at 66 FR 7585 effective date corrected..............42780
68.300--68.318 (Subpart D)  Heading revised.........................7585
    Regulation at 66 FR 7585 effective date corrected..............42780
68.300  (a) revised; (b) removed; (c) redesignated as (b)...........7585
    Regulation at 66 FR 7585 effective date corrected..............42780
68.302  Removed.....................................................7585
    Regulation at 66 FR 7585 effective date corrected..............42780
68.304  Removed.....................................................7585
    Regulation at 66 FR 7585 effective date corrected..............42780
68.306  Removed.....................................................7585
    Regulation at 66 FR 7585 effective date corrected..............42780
68.308  Removed.....................................................7585
    Regulation at 66 FR 7585 effective date corrected..............42780
68.310  Removed.....................................................7585
    Regulation at 66 FR 7585 effective date corrected..............42780
68.312  Removed.....................................................7585
    Regulation at 66 FR 7585 effective date corrected..............42780
68.314  Removed.....................................................7585
    Regulation at 66 FR 7585 effective date corrected..............42780
68.320  Added.......................................................7585
    Regulation at 66 FR 7585 effective date corrected..............42780
68.321  Added.......................................................7585
    Regulation at 66 FR 7585 effective date corrected..............42780
68.322  Added.......................................................7586
    Regulation at 66 FR 7586 effective date corrected..............42780
68.324  Added.......................................................7586
    Regulation at 66 FR 7586 effective date corrected..............42780
68.326  Added.......................................................7586
    Regulation at 66 FR 7586 effective date corrected..............42780
68.346  Added.......................................................7586
    Regulation at 66 FR 7586 effective date corrected..............42780
68.348  Added.......................................................7586
    Regulation at 66 FR 7586 effective date corrected..............42780
68.350  Added.......................................................7587
    Regulation at 66 FR 7587 effective date corrected..............42780
68.354  Added.......................................................7587
    Regulation at 66 FR 7587 effective date corrected..............42780
68.415  Added.......................................................7587
    Regulation at 66 FR 7587 effective date corrected..............42780
68.417  Added.......................................................7587

[[Page 462]]

    Regulation at 66 FR 7587 effective date corrected..............42780
68.418  Added.......................................................7587
    Regulation at 66 FR 7587 effective date corrected..............42780
68.419  Added.......................................................7587
    Regulation at 66 FR 7587 effective date corrected..............42780
68.420  Added.......................................................7588
    Regulation at 66 FR 7588 effective date corrected..............42780
68.423  Added.......................................................7588
    Regulation at 66 FR 7588 effective date corrected..............42780
68.500--68.506 (Subpart F)  Removed.................................7588
    Regulation at 66 FR 7588 effective date corrected..............42780
68.602--68.614 (Subpart G)  Added...................................7588
    Regulation at 66 FR 7588 effective date corrected..............42780
69.2  (ww) added...................................................59730
69.4  (b)(2), (d) and (g) revised; (c) removed; (j) added..........59730
69.104  (a) amended; (c) through (f) revised; (j) through (l) 
        removed; (n) through (r) added.............................59730
69.105  (a) revised; (d) added.....................................59731
69.106  (g) revised; (h) added.....................................59731
69.111  (m) added..................................................59732
69.124  (a) revised................................................59732
69.130  Added......................................................59732
69.131  Added......................................................59732
69.306  (d) revised................................................59732
69.307  (c) revised; (e) added.....................................59732
69.415  Added......................................................59733
69.501  (b), (c) and (e) revised; (f) added........................59733
69.502  (d) and (e) added..........................................59733
69.603  (g) and (h)(5) amended.....................................59733
69.609  (b) amended................................................59733

                                  2002

  (Regulations published from January 1, 2002, through October 1, 2002)

47 CFR
                                                                   67 FR
                                                                    Page
Chapter I
43.21  (e) introductory text revised; (f) through (j) amended.......5700
    Heading, (g) and (h) revised...................................13225
43.43  OMB number..................................................14660
43.61  (a)(3) amended..............................................13225
    (c) revised (OMB number pending)...............................45390
    OMB number.....................................................56496
43.81  Removed.....................................................45390
51  Actions on petitions; eff. 10-30-02............................61282
    Order; eff. 10-30-02...........................................61285
51.329  (c)(3) revised.............................................13225
51.333  (e) revised................................................13226
51.609  (c)(1), (2), (3) and (d) revised............................5700
    Regulation at 67 FR 5700 eff. date delayed to 1-1-03...........20052
52  Order..........................................................16322
52.15  (g)(4) and (k)(2) revised; (g)(5) and (k)(3) added...........6434
    (f)(6)(iii) and (i)(7) amended.................................13226
52.16  (c) amended.................................................13226
52.19  (c)(3) introductory text and (i) revised; (4) added (OMB 
        number pending).............................................6434
52.21  (r) added....................................................6435
52.23  (f) amended.................................................13226
52.25  (g) amended.................................................13226
52.26  (b)(3) amended..............................................13226
52.32  (b) and (c) amended.........................................13226
52.33  (a) introductory text, (1) introductory text and (ii) 
        revised; (a)(3) added; (OMB number pending)................40620
52.109  (c) amended................................................13226
53.209  (d) amended................................................13226
53.211  (e)(3) amended.............................................13226
54  Actions on petitions......................................3118, 6435
    Policy statement..........................................3441, 3620
    Order..........................................................10846
    Regulation at 67 FR 3620 withdrawn..............................7287
    Technical correction...........................................17014
54.207  (e) revised................................................13226
54.301  (b) table, (c)(2), (5) and (d)(4) revised...................5701
    (f)(2) revised.................................................13226
    Regulation at 67 FR 5701 eff. date delayed to 1-1-03...........20052
54.303  (b)(5) added...............................................42506
54.307  OMB number.................................................15490
54.313  (d) revised................................................13094
54.315  OMB number.................................................15490
54.403  (c) correctly added; CFR correction........................60166
54.507  (a) revised................................................41866
54.520  Note added.................................................50603
54.702  (f) removed; (g) through (n) redesignated as (f) through 
        (m)........................................................11259
54.703  (c)(2) and (d) revised.....................................13226

[[Page 463]]

54.706  (b) and (c) revised........................................11260
54.709  (a) introductory text, (1) and (2) revised.................11260
    (a)(3) revised.................................................13227
54.711  (b) amended................................................13227
54.717  Revised....................................................13227
54.722  Heading and (a) revised....................................13228
54.723  Revised....................................................13228
54.724  Revised....................................................13228
54.807  (c) introductory text revised..............................13228
54.902  OMB number.................................................15490
54.903  (a)(1) and (3) amended.....................................15493
    OMB number.....................................................15490
    (a)(1) and (3) correctly amended...............................19809
54.904  OMB number.................................................15490
61  Actions on petitions...........................................17009
61.17  (c) amended.................................................13228
61.32  (c) amended.................................................13228
61.33  (a)(3) and (g) revised......................................13228
61.38  (c)(1) amended..............................................13228
61.58  (a)(2)(iii) amended.........................................13228
61.153  (c) revised................................................13228
63.01  (a) revised (OMB number pending)............................18830
    OMB number.....................................................41182
63.03  Added (OMB number pending)..................................18831
    (b)(2)(i), (ii) and (iii) correctly designated.................21803
    OMB number.....................................................41182
63.04  Added (OMB number pending)..................................18832
    OMB number.....................................................41182
63.09  Note 2 revised..............................................45390
63.10  (d) and (e) revised (OMB number pending)....................45390
    OMB number.....................................................56496
63.17  (b)(4) revised..............................................45390
63.18  (e)(3) removed; (e)(4) redesignated as (e)(3); new (e)(3) 
        and (g) revised; (h) note added (OMB number pending).......45390
    OMB number.....................................................56496
63.19  Revised (OMB number pending)................................45391
    OMB number.....................................................56496
63.20  (a) revised (OMB number pending)............................45391
    OMB number.....................................................56496
63.21  (h) removed; (i) and (j) redesignated as (h) and (i)........45391
    (i) correctly revised..........................................57344
63.22  (a), (b) and (c) revised....................................45391
63.23  (a) and (b) revised.........................................45391
63.24  Revised (OMB number pending)................................45391
    OMB number.....................................................56496
63.53  (b) removed; (c) redesignated as (b)........................45392
64  Authority citation revised...............................9616, 22007
    Clarification......................................3621, 4203, 39863
    Actions on petitions...........................................48415
64.604  (c)(5)(iii)(B) and (I) amended.............................13229
64.605  (a) amended................................................13229
64.703  (a)(4) and (b)(4) revised; (b)(2) amended...................2819
64.708  (f) revised.................................................2820
64.709  (a) revised.................................................2820
64.710  (a)(1) revised; (b)(1) and (4) amended......................2820
64.901  (b)(1) revised..............................................5702
64.903  (a) introductory text revised...............................5702
    (b) amended....................................................13229
64.904  Revised.....................................................5702
    (b) and (c) revised............................................13229
64.905  Added.......................................................5702
64.1301  Added; eff. 1-1-03.........................................9616
64.2003  Revised; eff. 10-21-02....................................59211
64.2005  (a) introductory text, (2), (b) introductory text and (1) 
        revised; eff. 10-21-02.....................................59211
64.2007  Revised; eff. 10-21-02 (OMB number pending)...............59212
64.2008  Added; eff. 10-21-02 (OMB number pending).................59212
64.2009  (c) and (d) revised; (f) added; eff. 10-21-02 (OMB number 
        pending)...................................................59213
64.2202  Amended...................................................22008
64.2203  (b) revised; (c) added....................................22008
64.3000--64.3004 (Subpart AA)  Added................................1649
64.3002  OMB number pending.........................................1649
    OMB number......................................................3621
64  Appendix A amended.............................................13229
65.101  (c) revised................................................13229
65.103  (a) amended................................................13229
65.105  (a) and (d) amended........................................13229
65.300  (a) amended.................................................5702
65.302  Amended.....................................................5702
65.303  Amended.....................................................5702
65.304  Amended.....................................................5702
65.450  (a), (b)(1), (2) and (d) revised............................5702
65.820  (a) and (c) revised.........................................5703
    (d) amended....................................................13229
65.830  (a)(3), (4) and (c) revised.................................5703
68.105  (d)(3) corrected...........................................60167
68.162  (f)(5)(i) and (g)(1) revised; eff. 10-9-02.................57182

[[Page 464]]

68.321  Revised; eff. 10-9-02......................................57182
68.211  (b) amended................................................13229
68.317  (g) amended................................................13229
68.354  (d) revised; eff. 10-9-02..................................57182
68.420  (b) amended................................................13229
68.602  (c) revised; eff. 10-9-02..................................57182
68.612  Revised; eff. 10-9-02......................................57182
69  Actions on pettions............................................17009
    Interpretation.................................................42735
69.2  (j) and (z) revised...........................................5703
69.302  (a) revised.................................................5703
69.409  Heading revised.............................................5703


                      []