[Title 47 CFR ]
[Code of Federal Regulations (annual edition) - October 1, 2012 Edition]
[From the U.S. Government Printing Office]
[[Page i]]
Title 47
Telecommunication
________________________
Parts 40 to 69
Revised as of October 1, 2012
Containing a codification of documents of general
applicability and future effect
As of October 1, 2012
Published by the Office of the Federal Register
National Archives and Records Administration as a
Special Edition of the Federal Register
[[Page ii]]
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[[Page iii]]
Table of Contents
Page
Explanation................................................. v
Title 47:
Chapter I--Federal Communications Commission
(Continued) 3
Finding Aids:
Table of CFR Titles and Chapters........................ 499
Alphabetical List of Agencies Appearing in the CFR...... 519
Table of OMB Control Numbers............................ 529
List of CFR Sections Affected........................... 539
[[Page iv]]
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Cite this Code: CFR
To cite the regulations in
this volume use title,
part and section number.
Thus, 47 CFR 42.01 refers
to title 47, part 42,
section 01.
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[[Page v]]
EXPLANATION
The Code of Federal Regulations is a codification of the general and
permanent rules published in the Federal Register by the Executive
departments and agencies of the Federal Government. The Code is divided
into 50 titles which represent broad areas subject to Federal
regulation. Each title is divided into chapters which usually bear the
name of the issuing agency. Each chapter is further subdivided into
parts covering specific regulatory areas.
Each volume of the Code is revised at least once each calendar year
and issued on a quarterly basis approximately as follows:
Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1
The appropriate revision date is printed on the cover of each
volume.
LEGAL STATUS
The contents of the Federal Register are required to be judicially
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HOW TO USE THE CODE OF FEDERAL REGULATIONS
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To determine whether a Code volume has been amended since its
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OMB CONTROL NUMBERS
The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires
Federal agencies to display an OMB control number with their information
collection request.
[[Page vi]]
Many agencies have begun publishing numerous OMB control numbers as
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(b) The matter incorporated is in fact available to the extent
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process.
(c) The incorporating document is drafted and submitted for
publication in accordance with 1 CFR part 51.
What if the material incorporated by reference cannot be found? If
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that volume.
[[Page vii]]
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Charles A. Barth,
Director,
Office of the Federal Register.
October 1, 2012.
[[Page ix]]
THIS TITLE
Title 47--Telecommunication is composed of five volumes. The parts
in these volumes are arranged in the following order: Parts 0-19, parts
20-39, parts 40-69, parts 70-79, and part 80 to end. All five volumes
contain chapter I--Federal Communications Commission. The last volume,
part 80 to end, also includes chapter II--Office of Science and
Technology Policy and National Security Council, chapter III--National
Telecommunications and Information Administration, Department of
Commerce, and chapter IV--National Telecommunications and Information
Administration, Department of Commerce, and National Highway Traffic
Safety Administration, Department of Transportation. The contents of
these volumes represent all current regulations codified under this
title of the CFR as of October 1, 2012.
Part 73 contains a numerical designation of FM broadcast channels
(Sec. 73.201) and a table of FM allotments designated for use in
communities in the United States, its territories, and possessions
(Sec. 73.202). Part 73 also contains a numerical designation of
television channels (Sec. 73.603) and a table of allotments which
contain channels designated for the listed communities in the United
States, its territories, and possessions (Sec. 73.606).
The OMB control numbers for the Federal Communications Commission,
appear in Sec. 0.408 of chapter I. For the convenience of the user
Sec. 0.408 is reprinted in the Finding Aids section of the second
through fifth volumes.
For this volume, Michele Bugenhagen was Chief Editor. The Code of
Federal Regulations publication program is under the direction of
Michael L. White, assisted by Ann Worley.
[[Page 1]]
TITLE 47--TELECOMMUNICATION
(This book contains parts 40 to 69)
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Part
chapter i--Federal Communications Commission (Continued).... 42
[[Page 3]]
CHAPTER I--FEDERAL COMMUNICATIONS COMMISSION (CONTINUED)
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SUBCHAPTER B--COMMON CARRIER SERVICES (CONTINUED)
Part Page
40-41 [Reserved]
42 Preservation of records of communication
common carriers......................... 5
43 Reports of communication common carriers and
certain affiliates...................... 7
51 Interconnection............................. 14
52 Numbering................................... 91
53 Special provisions concerning Bell operating
companies............................... 117
54 Universal service........................... 122
59 Infrastructure sharing...................... 223
61 Tariffs..................................... 224
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......... 263
64 Miscellaneous rules relating to common
carriers................................ 294
65 Interstate rate of return prescription
procedures and methodologies............ 408
68 Connection of terminal equipment to the
telephone network....................... 417
69 Access charges.............................. 451
Supplementary Publications: Annual Reports of the Federal Communications
Commission to Congress.
Federal Communications Commission Reports of Orders and Decisions.
Communications Act of 1934 (with amendments and index thereto), Recap.
Version, May 1989.
Study Guide and Reference Material for Commercial Radio Operator
Examinations, May 1979 edition.
[[Page 5]]
SUBCHAPTER B_COMMON CARRIER SERVICES (CONTINUED)
PARTS 40 41 [RESERVED]
PART 42_PRESERVATION OF RECORDS OF COMMUNICATION COMMON CARRIERS--
Table of Contents
Applicability
Sec.
42.01 Applicability.
General Instructions
42.1 Scope of the regulations in this part.
42.2 Designation of a supervisory official.
42.3 Protection and storage of records.
42.4 Index of records.
42.5 Preparation and preservation of reproductions of original records.
42.6 Retention of telephone toll records.
42.7 Retention of other records.
Specific Instructions for Carriers Offering Interexchange Services
42.10 Public availability of information concerning interexchange
services.
42.11 Retention of information concerning detariffed interexchange
services.
Authority: Sec. 4(i), 48 Stat. 1066, as amended, 47 U.S.C. 154(i).
Interprets or applies secs. 219 and 220, 48 Stat. 1077-78, 47 U.S.C.
219, 220.
Source: 51 FR 32653, Sept. 15, 1986, unless otherwise noted.
Applicability
Sec. 42.01 Applicability.
This part prescribes the regulations governing the preservation of
records of communication common carriers that are fully subject to the
jurisdiction of the Commission.
General Instructions
Sec. 42.1 Scope of the regulations in this part.
(a) The regulations in this part apply to all accounts, records,
memoranda, documents, papers, and correspondence prepared by or on
behalf of the carrier as well as those which come into its possession in
connection with the acquisition of property, such as by purchase,
consolidation, merger, etc.
(b) The regulations in this part shall not be construed as requiring
the preparation of accounts, records, or memoranda not required to be
prepared by other regulations, such as the Uniform System of Accounts,
except as provided hereinafter.
(c) The regulations in this part shall not be construed as excusing
compliance with any other lawful requirement for the preservation of
records.
Sec. 42.2 Designation of a supervisory official.
Each carrier subject to the regulations in this part shall designate
one or more officials to supervise the preservation of its records.
Sec. 42.3 Protection and storage of records.
The carrier shall protect records subject to the regulations in this
part from damage from fires, and other hazards and, in the selection of
storage spaces, safeguard the records from unnecessary exposure to
deterioration.
Sec. 42.4 Index of records.
Each carrier shall maintain at its operating company headquarters a
master index of records. The master index shall identify the records
retained, the related retention period, and the locations where the
records are maintained. The master index shall be subject to review by
Commission staff and the Commission shall reserve the right to add
records, or lengthen retention periods upon finding that retention
periods may be insufficient for its regulatory purposes. When any
records are lost or destroyed before expiration of the retention period
set forth in the master index, a certified statement shall be added to
the master index, as soon as practicable, listing, as far as may be
determined, the records lost or destroyed and describing the
circumstances of the premature loss or destruction. At each office of
the carrier where records are kept or stored, the carrier shall arrange,
file, and currently index the records on site so that
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they may be readily identified and made available to representatives of
the Commission.
Sec. 42.5 Preparation and preservation of reproductions of original
records.
(a) Each carrier may use a retention medium of its choice to
preserve records in lieu of original records, provided that they observe
the requirements of paragraphs (b) and (c) of this section.
(b) A paper or microfilm record need not be created to satisfy the
requirements of this part if the record is initially prepared in
machine-readable medium such as punched cards, magnetic tapes, and
disks. Each record kept in a machine-readable medium shall be
accompanied by a statement clearly indicating the type of data included
in the record and certifying that the information contained in it has
been accurately duplicated. This statement shall be executed by a person
duplicating the records. The records shall be indexed and retained in
such a manner that they are easily accessible, and the carrier shall
have the facilities available to locate, identify and reproduce the
records in readable form without loss of clarity.
(c) Records may be retained on microfilm provided they meet the
requirements of the Federal Business Records Act (28 U.S.C. 1732).
Sec. 42.6 Retention of telephone toll records.
Each carrier that offers or bills toll telephone service shall
retain for a period of 18 months such records as are necessary to
provide the following billing information about telephone toll calls:
the name, address, and telephone number of the caller, telephone number
called, date, time and length of the call. Each carrier shall retain
this information for toll calls that it bills whether it is billing its
own toll service customers for toll calls or billing customers for
another carrier.
[51 FR 39536, Oct. 29, 1986]
Sec. 42.7 Retention of other records.
Except as specified in Sec. 42.6, each carrier shall retain records
identified in its master index of records for the period established
therein. Records relevant to complaint proceedings not already contained
in the index of records should be added to the index as soon as a
complaint is filed and retained until final disposition of the
complaint. Records a carrier is directed to retain as the result of a
proceeding or inquiry by the Commission to the extent not already
contained in the index will also be added to the index and retained
until final disposition of the proceeding or inquiry.
Specific Instructions for Carriers Offering Interexchange Services
Sec. 42.10 Public availability of information concerning
interexchange services.
(a) A nondominant interexchange carrier (IXC) shall make available
to any member of the public, in at least one location, during regular
business hours, information concerning its current rates, terms and
conditions for all of its international and interstate, domestic,
interexchange services. Such information shall be made available in an
easy to understand format and in a timely manner. Following an inquiry
or complaint from the public concerning rates, terms and conditions for
such services, a carrier shall specify that such information is
available and the manner in which the public may obtain the information.
(b) In addition, a nondominant IXC that maintains an Internet
website shall make such rate and service information specified in
paragraph (a) of this section available on-line at its Internet website
in a timely and easily accessible manner, and shall update this
information regularly.
[64 FR 19725, Apr. 22, 1999, as amended at 66 FR 16879, Mar. 28, 2001]
Sec. 42.11 Retention of information concerning detariffed
interexchange services.
(a) A nondominant IXC shall maintain, for submission to the
Commission and to state regulatory commissions upon request, price and
service information regarding all of the carrier's international and
interstate, domestic, interexchange service offerings. A commercial
mobile radio service (CMRS) provider shall maintain such price and
[[Page 7]]
service information only about its international common carrier service
offerings and only for those routes on which the CMRS provider is
classified as dominant under Sec. 63.10 of this Chapter due to an
affiliation with a foreign carrier that collects settlement payments
from U.S. carriers for terminating U.S. international switched traffic
at the foreign end of the route. Such a CMRS provider is not required to
maintain its price and service information, however, on any such
affiliated route if it provides service on that route solely through the
resale of an unaffiliated facilities-based provider's international
switched services. The price and service information maintained for
purposes of this paragraph shall include documents supporting the rates,
terms, and conditions of the carrier's international and interstate,
domestic, interexchange offerings. The information maintained pursuant
to this section shall be maintained in a manner that allows the carrier
to produce such records within ten business days. For purposes of this
paragraph, affiliated and foreign carrier are defined in Sec. 63.09 of
this chapter.
(b) The price and service information maintained pursuant to this
section shall be retained for a period of at least two years and six
months following the date the carrier ceases to provide services
pursuant to such rates, terms and conditions.
[61 FR 59366, Nov. 22, 1996, as amended at 62 FR 59604, Nov. 4, 1997; 64
FR 19725, Apr. 22, 1999; 66 FR 16879, Mar. 28, 2001]
PART 43_REPORTS OF COMMUNICATION COMMON CARRIERS AND CERTAIN
AFFILIATES--Table of Contents
Sec.
43.01 Applicability.
43.11 Reports of local exchange competition data.
43.21 Transactions with affiliates.
43.41 [Reserved]
43.43 Reports of proposed changes in depreciation rates.
43.51 Contracts and concessions.
43.61 Reports of international telecommunications traffic.
43.72 [Reserved]
43.82 International circuit status reports.
Authority: 47 U.S.C. 154; Telecommunications Act of 1996, Pub. L.
104-104, secs. 402 (b)(2)(B), (c), 110 Stat. 56 (1996) as amended unless
otherwise noted. 47 U.S.C. 211, 219, 220 as amended.
Source: 28 FR 13214, Dec. 5, 1963, unless otherwise noted.
Sec. 43.01 Applicability.
(a) The sections in this part include requirements which have been
promulgated under authority of sections 211 and 219 of the
Communications Act of 1934, as amended, with respect to the filing by
communication common carriers and certain of their affiliates of
periodic reports and certain other data, but do not include certain
requirements relating to the filing of information with respect to
specific services, accounting systems and other matters incorporated in
other parts of this chapter.
(b) Except as provided in paragraphs (c) and (d) of this section,
carriers becoming subject to the provisions of the several sections of
this part for the first time, shall, within thirty (30) days of becoming
subject, file the required data as set forth in the various sections of
this part.
(c) Carriers becoming subject to the provisions of Sec. Sec. 43.21
and 43.43 for the first time, because their annual operating revenues
equal or exceed the indexed revenue threshold for a given year, shall
begin collecting data pursuant to such provisions in the calendar year
following the publication of that indexed revenue threshold in the
Federal Register. With respect to such initial filing of reports by any
carrier, pursuant to the provisions of Sec. 43.21 (d), (e), (f), (g),
(h), (i), (j), and (k), the carrier is to begin filing data for the
calendar year following the publication of that indexed revenue
threshold in the Federal Register by April 1 of the second calendar year
following publication of that indexed revenue threshold in the Federal
Register.
(d) Common carriers subject to the provisions of Sec. 43.11 shall
file data semi-annually. Reports shall be filed each year on or before
March 1st (reporting data about their deployment of local exchange
services as of December 31 of the prior year) and September 1st
(reporting data about their deployment of local exchange services as of
June 31 of
[[Page 8]]
the current year). Common carriers becoming subject to the provisions of
Sec. 43.11 for the first time within a calendar year shall file data
for the reporting period in which they become eligible and semi-annually
thereafter. Common carriers subject to the provisions of Sec. 43.11
shall make an initial filing of the FCC Form 477 on May 15, 2000
(reporting data about their deployment of local exchange services as of
December 31, 1999).
[28 FR 13214, Dec. 5, 1963, as amended at 62 FR 39778, July 24, 1997; 65
FR 19685, Apr. 12, 2000]
Sec. 43.11 Reports of local exchange competition data
(a) All common carriers and their affiliates (as defined in 47
U.S.C. 153(1)) providing telephone exchange or exchange access service
(as defined in 47 U.S.C. 153(16) and (47)), commercial mobile radio
service (CMRS) providers offering mobile telephony (as defined in Sec.
20.15(b)(1) of this chapter), and Interconnected Voice over IP service
providers (as defined in Sec. 9.3 of this chapter), shall file with the
Commission a completed FCC Form 477, in accordance with the Commission's
rules and the instructions to the FCC Form 477, for each state in which
they provide service.
(b) Respondents identified in paragraph (a) of this section shall
include in each report a certification signed by an appropriate official
of the respondent (as specified in the instructions to FCC Form 477).
(c) Respondents may make requests for Commission non-disclosure of
provider-specific data contained in the Form 477 under Sec. 0.459 of
this chapter by so indicating on the Form 477 at the time that the
subject data are submitted. The Commission shall make all decisions
regarding non-disclosure of provider-specific information, except that
the Chief of the Wireline Competition Bureau may release provider-
specific information to a state commission, provided that the state
commission has protections in place that would preclude disclosure of
any confidential information.
(d) Respondents identified in paragraph (b) of this section shall
file a revised version of FCC Form 477 if and when they discover a
significant error in their filed FCC Form 477. For counts, a difference
amounting to 5 percent of the filed number is considered significant.
For percentages, a difference of 5 percentage points is considered
significant.
(e) Failure to file FCC Form 477 in accordance with the Commission's
rules and the instructions to Form 477 may lead to enforcement action
pursuant to the Act and any other applicable law.
[65 FR 19685, Apr. 12, 2000, as amended at 69 FR 77938, Dec. 29, 2004;
73 FR 37881, July 2, 2008]
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 than the date prescribed by the Securities and
Exchange Commission for its
[[Page 9]]
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
Sec. Sec. 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 Sec. Sec. 61.41 through 61.49 of this chapter, and have
selected basic factors that fall within the basic factor ranges for all
accounts are exempt from paragraphs (b)(3), (b)(4), and (c) introductory
text of this section. They shall instead comply with paragraphs (b)(1),
(b)(2) and (b)(5) of this section and provide a book and theoretical
reserve summary and a summary of basic factors underlying proposed rates
by account.
(3) Interexchange carriers regulated under price caps, pursuant to
Sec. Sec. 61.41 through 61.49 of this chapter, are exempted from
submitting the supplemental information as described in paragraph (c)
introductory text of this section. They shall instead submit: Generation
data, a summary of basic factors underlying proposed depreciation rates
by account and a short narrative supporting those basic factors,
including company plans of forecasted retirements and additions, recent
annual retirements, salvage and cost of removal.
(d) Each report shall be filed in duplicate and the original shall
be signed by the responsible official to whom correspondence related
thereto should be addressed.
(e) Unless otherwise directed or approved by the Commission, the
following shall be observed: Proposed changes in depreciation rates
shall be filed at least ninety (90) days prior to the last day of the
month with respect to which the revised rates are first to be applied in
the accounts (e.g., if the new rates are to be first applied in the
depreciation accounts for September, they must be filed on or before
July 1). Such rates may be made retroactive to a date not prior to the
beginning of the year in which the filing is made: Provided however,
that in no event shall a carrier for which the Commission has prescribed
depreciation rates make any changes in such rates unless the changes are
prescribed by the Commission. Carriers who select basic factors that
fall within the basic factor ranges for all accounts are exempt from
depreciation rate prescription by the Commission.
(f) Any changes in depreciation rates that are made under the
provisions of paragraph (e) of this section shall not be construed as
having been approved by the Commission unless the carrier has been
specifically so informed.
[28 FR 13214, Dec. 5, 1963, as amended at 30 FR 3223, Mar. 9, 1965; 53
FR 49987, Dec. 13, 1988; 58 FR 58790, Nov. 4, 1993; 61 FR 50246, Sept.
25, 1996; 62 FR 39779, July 24, 1997; 65 FR 18931, Apr. 10, 2000]
Sec. 43.51 Contracts and concessions.
(a)(1) Any communication common carrier described in paragraph (b)
of this section must file with the Commission, within thirty (30) days
of execution, a copy of each contract, agreement, concession, license,
authorization, operating agreement or other arrangement to which it is a
party and amendments thereto with respect to the following:
(i) The exchange of services; and,
(ii) The interchange or routing of traffic and matters concerning
rates, accounting rates, division of tolls, or the basis of settlement
of traffic balances, except as provided in paragraph (c) of this
section.
(2) If the contract, agreement, concession, license, authorization,
operating agreement or other arrangement and amendments thereto is made
other than in writing, a certified statement covering all details
thereof must be filed by at least one of the parties to the agreement.
Each other party to the 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 that is engaged in foreign communications and that has
been classified as dominant for any service on any of the U.S.-
international routes included in the contract, except for a carrier
classified as dominant on a particular route due only to a foreign
carrier affiliation under Sec. 63.10 of this chapter, or
(3) A carrier, other than a provider of commercial mobile radio
services, that is engaged in foreign communications and enters into a
contract, agreement, concession, license, authorization, operating
agreement or other arrangement and amendments thereto with a foreign
carrier that does not qualify for the presumption, set forth in Note 3
to this section, that it lacks market power on the foreign end of one or
more of the U.S.-international routes included in the contract, unless
the route appears on the Commission's list of U.S.-international routes
that the Commission has exempted from the international settlements
policy set forth in Sec. 64.1002 of this chapter.
(c) With respect to contracts coming within the scope of paragraph
(a)(1)(ii) of this section between subject telephone carriers and
connecting carriers, except those contracts related to communications
with foreign or overseas points, such documents shall not be filed with
the Commission; but each subject telephone carrier shall maintain a copy
of such contracts to which it is a party in appropriate files at a
central location upon its premises, copies of which shall be readily
accessible to Commission staff and members of the public upon reasonable
request therefor; and upon request by the Commission, a subject
telephone carrier shall promptly forward individual contracts to the
Commission.
(d) Any U.S. carrier that interconnects to the U.S. public switched
network an international private line that extends between the United
States and a country that the Commission has not exempted from the
international settlements policy shall file annually with the Chief of
the International Bureau a certified statement containing the number and
type (e.g., a 64-kbps circuit) of private lines interconnected at the
carrier's own switch, including any switch in which the carrier holds a
leasehold interest. The certified statement shall specify the number and
type of interconnected private lines on a country specific basis. The
identity of the customer need not be reported, and the Commission will
treat the country of origin information as confidential. Carriers need
not file their contracts for such interconnections, unless they are
specifically requested to do so. These reports shall be filed on a
consolidated basis on February 1 (covering international private lines
interconnected during the preceding January 1 to December 31 period) of
each year. International private lines to countries which the Commission
has exempted from the international settlements policy, set forth in
Sec. 64.1002 of this chapter, at any time during a particular reporting
period are exempt from this filing requirement.
(e) Other filing requirements for carriers providing service on
U.S.-international routes that are subject to the international
settlements policy.
(1) For routes subject to the international settlements policy set
forth in Sec. 64.1002 of this chapter, if a U.S. carrier files an
operating or other agreement with a foreign carrier pursuant to
paragraph (a) of this section to begin providing switched voice, telex,
telegraph, or packet-switched service between the United States and a
foreign point, the carrier must also file with the International Bureau
a modification request under Sec. 64.1001 of this chapter. The
operating or other agreement cannot become effective until the
modification request has been granted under paragraph Sec. 64.1001(e)
of this chapter.
(2) For routes subject to the international settlements policy, if a
carrier files an amendment, pursuant to paragraph (a) of this section,
to an existing operating or other agreement with a foreign carrier to
provide switched voice, telex, telegraph, or
[[Page 13]]
packet-switched service between the United States and a foreign point,
and the amendment relates to the exchange of services, interchange or
routing of traffic and matters concerning rates, accounting rates,
division of tolls, the allocation of return traffic, or the basis of
settlement of traffic balances, the carrier must also file with the
International Bureau a modification request under Sec. 64.1001 of this
chapter. The amendment to the operating or other agreement cannot become
effective until the modification request has been granted under Sec.
64.1001(e) of this chapter.
(f) Confidential treatment. (1) A carrier providing service on an
international route that is exempt from the international settlements
policy under paragraph (e)(3) of this section, but that is otherwise
required by paragraphs (a) and (b) of this section to file a contract
covering service on that route with the Commission, may request
confidential treatment under Sec. 0.457 of this Chapter for the rates,
terms and conditions that govern the settlement of U.S. international
traffic.
(2) Carriers requesting confidential treatment under this paragraph
must include the information specified in Sec. 64.1001(c) of this
Chapter. Such filings shall be made with the Commission, with a copy to
the Chief, International Bureau. The transmittal letter accompanying the
confidential filing shall clearly identify the filing as responsive to
Sec. 43.51(f).
Note 1 to Sec. 43.51: For purposes of this section, affiliated and
foreign carrier are defined in Sec. 63.09 of this chapter.
Note 2 to Sec. 43.51: To the extent that a foreign government
provides telecommunications services directly through a governmental
organization, body or agency, it shall be treated as a foreign carrier
for the purposes of this section.
Note 3 to Sec. 43.51: Carriers shall rely on the Commission's list
of foreign carriers that do not qualify for the presumption that they
lack market power in particular foreign points for purposes of
determining which of their foreign carrier contracts are subject to the
contract filing requirements set forth in this section. The Commission's
list of foreign carriers that do not qualify for the presumption that
they lack market power in particular foreign points is available from
the International Bureau's World Wide Web site at http://www.fcc.gov/ib.
The Commission will include on the list of foreign carriers that do not
qualify for the presumption that they lack market power in particular
foreign points any foreign carrier that has 50 percent or more market
share in the international transport or local access markets of a
foreign point. A party that seeks to remove such a carrier from the
Commission's list bears the burden of submitting information to the
Commission sufficient to demonstrate that the foreign carrier lacks 50
percent market share in the international transport and local access
markets on the foreign end of the route or that it nevertheless lacks
sufficient market power on the foreign end of the route to affect
competition adversely in the U.S. market. A party that seeks to add a
carrier to the Commission's list bears the burden of submitting
information to the Commission sufficient to demonstrate that the foreign
carrier has 50 percent or more market share in the international
transport or local access markets on the foreign end of the route or
that it nevertheless has sufficient market power to affect competition
adversely in the U.S. market.
Note 4 to Sec. 43.51: The Commission's list of international routes
exempted from the international settlements policy is available on the
International Bureau's World Wide Web site at http://www.fcc.gov/ib.
[66 FR 16879, Mar. 28, 2001, as amended at 69 FR 23153, Apr. 28, 2004]
Sec. 43.61 Reports of international telecommunications traffic.
(a) Each common carrier engaged in providing international
telecommunications service between the United States (as defined in the
Communications Act, as amended, 47 U.S.C. 153) 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.
[[Page 14]]
(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) [Reserved]
[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; 76 FR 42573, July 19, 2011]
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 United States (as
defined in the Communications Act, as amended, 47 U.S.C. 153) 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, as amended at 76 FR 42573, July 19, 2011]
PART 51_INTERCONNECTION--Table of Contents
Subpart A_General Information
Sec.
51.1 Basis and purpose.
51.3 Applicability to negotiated agreements.
51.5 Terms and definitions.
Subpart B_Telecommunications Carriers
51.100 General duty.
Subpart C_Obligations of All Local Exchange Carriers
51.201 Resale.
51.203 Number portability.
51.205 Dialing parity: General.
51.207 Local dialing parity.
51.209 Toll dialing parity.
51.213 Toll dialing parity implementation plans.
51.215 Dialing parity: Cost recovery.
51.217 Nondiscriminatory access: Telephone numbers, operator services,
directory assistance services, and directory listings.
51.219 Access to rights of way.
51.221 Reciprocal compensation.
51.223 Application of additional requirements.
51.230 Presumption of acceptability for deployment of an advanced
services loop technology.
51.231 Provision of information on advanced services deployment.
51.232 Binder group management.
51.233 Significant degradation of services caused by deployment of
advanced services.
Subpart D_Additional Obligations of Incumbent Local Exchange Carriers
51.301 Duty to negotiate.
51.303 Preexisting agreements.
51.305 Interconnection.
51.307 Duty to provide access on an unbundled basis to network elements.
51.309 Use of unbundled network elements.
51.311 Nondiscriminatory access to unbundled network elements.
51.313 Just, reasonable and nondiscriminatory terms and conditions for
the provision of unbundled network elements.
51.315 Combination of unbundled network elements.
51.316 Conversion of unbundled network elements and services.
51.317 Standards for requiring the unbundling of network elements.
51.318 Eligibility criteria for access to certain unbundled network
elements.
51.319 Specific unbundling requirements.
51.320 Assumption of responsibility by the Commission.
[[Page 15]]
51.321 Methods of obtaining interconnection and access to unbundled
elements under section 251 of the Act.
51.323 Standards for physical collocation and virtual collocation.
51.325 Notice of network changes: Public notice requirement.
51.327 Notice of network changes: Content of notice.
51.329 Notice of network changes: Methods for providing notice.
51.331 Notice of network changes: Timing of notice.
51.333 Notice of network changes: Short term notice, objections thereto
and objections to retirement of copper loops or copper
subloops.
51.335 Notice of network changes: Confidential or proprietary
information.
Subpart E_Exemptions, Suspensions, and Modifications of Requirements of
Section 251 of the Act
51.401 State authority.
51.403 Carriers eligible for suspension or modification under section
251(f)(2) of the Act.
51.405 Burden of proof.
Subpart F_Pricing of Elements
51.501 Scope.
51.503 General pricing standard.
51.505 Forward-looking economic cost.
51.507 General rate structure standard.
51.509 Rate structure standards for specific elements.
51.511 Forward-looking economic cost per unit.
51.513 Proxies for forward-looking economic cost.
51.515 Application of access charges.
Subpart G_Resale
51.601 Scope of resale rules.
51.603 Resale obligation of all local exchange carriers.
51.605 Additional obligations of incumbent local exchange carriers.
51.607 Wholesale pricing standard.
51.609 Determination of avoided retail costs.
51.611 Interim wholesale rates.
51.613 Restrictions on resale.
51.615 Withdrawal of services.
51.617 Assessment of end user common line charge on resellers.
Subpart H_Reciprocal Compensation for Transport and Termination of
Telecommunications Traffic
51.700 Purpose of this subpart.
51.701 Scope of transport and termination pricing rules.
51.703 Non-Access reciprocal compensation obligation of LECs.
51.705 LECs' rates for transport and termination.
51.707 [Reserved]
51.709 Rate structure for transport and termination.
51.711 Symmetrical reciprocal compensation.
51.713 Bill-and-keep arrangements.
51.715 Interim transport and termination pricing.
51.717 [Reserved]
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.
Subpart J_Transitional Access Service Pricing
51.901 Purpose and scope of transitional access service pricing rules.
51.903 Definitions.
51.905 Implementation.
51.907 Transition of price cap carrier access charges.
51.909 Transition of rate-of-return carrier access charges.
51.911 Access reciprocal compensation rates for competitive LECs.
51.913 Transition for VoIP-PSTN traffic.
51.915 Recovery mechanism for price cap carriers.
51.917 Revenue recovery for Rate-of-Return Carriers.
51.919 Reporting and monitoring.
Authority: Sections 1-5, 7, 201-05, 207-09, 218, 220, 225-27, 251-
54, 256, 271, 303(r), 332, 706 of the Telecommunication Act of 1996, 48
Stat. 1070, as amended, 1077; 47 U.S.C. 151-55, 157, 201-05, 207-09,
218, 220, 225-27, 251-54, 256, 271, 303(r), 332, 1302, 47 U.S.C. 157
note, unless otherwise noted.
Source: 61 FR 45619, Aug. 29, 1996, unless otherwise noted.
[[Page 16]]
Subpart A_General Information
Sec. 51.1 Basis and purpose.
(a) Basis. These rules are issued pursuant to the Communications Act
of 1934, as amended.
(b) Purpose. The purpose of these rules is to implement sections 251
and 252 of the Communications Act of 1934, as amended, 47 U.S.C. 251 and
252.
Sec. 51.3 Applicability to negotiated agreements.
To the extent provided in section 252(e)(2)(A) of the Act, a state
commission shall have authority to approve an interconnection agreement
adopted by negotiation even if the terms of the agreement do not comply
with the requirements of this part.
Sec. 51.5 Terms and definitions.
Terms used in this part have the following meanings:
Act. The Communications Act of 1934, as amended.
Advanced intelligent network. Advanced intelligent network is a
telecommunications network architecture in which call processing, call
routing, and network management are provided by means of centralized
databases located at points in an incumbent local exchange carrier's
network.
Advanced services. The term ``advanced services'' is defined as high
speed, switched, broadband, wireline telecommunications capability that
enables users to originate and receive high-quality voice, data,
graphics or video telecommunications using any technology.
Arbitration, final offer. Final offer arbitration is a procedure
under which each party submits a final offer concerning the issues
subject to arbitration, and the arbitrator selects, without
modification, one of the final offers by the parties to the arbitration
or portions of both such offers. ``Entire package final offer
arbitration,'' is a procedure under which the arbitrator must select,
without modification, the entire proposal submitted by one of the
parties to the arbitration. ``Issue-by-issue final offer arbitration,''
is a procedure under which the arbitrator must select, without
modification, on an issue-by-issue basis, one of the proposals submitted
by the parties to the arbitration.
Billing. Billing involves the provision of appropriate usage data by
one telecommunications carrier to another to facilitate customer billing
with attendant acknowledgements and status reports. It also involves the
exchange of information between telecommunications carriers to process
claims and adjustments.
Binder or binder group. Copper pairs bundled together, generally in
groups of 25, 50 or 100.
Business line. A business line is an incumbent LEC-owned switched
access line used to serve a business customer, whether by the incumbent
LEC itself or by a competitive LEC that leases the line from the
incumbent LEC. The number of business lines in a wire center shall equal
the sum of all incumbent LEC business switched access lines, plus the
sum of all UNE loops connected to that wire center, including UNE loops
provisioned in combination with other unbundled elements. Among these
requirements, business line tallies:
(1) Shall include only those access lines connecting end-user
customers with incumbent LEC end-offices for switched services,
(2) Shall not include non-switched special access lines,
(3) Shall account for ISDN and other digital access lines by
counting each 64 kbps-equivalent as one line. For example, a DS1 line
corresponds to 24 64 kbps-equivalents, and therefore to 24 ``business
lines.''
Commercial Mobile Radio Service (CMRS). CMRS has the same meaning as
that term is defined in Sec. 20.3 of this chapter.
Commingling. Commingling means the connecting, attaching, or
otherwise linking of an unbundled network element, or a combination of
unbundled network elements, to one or more facilities or services that a
requesting telecommunications carrier has obtained at wholesale from an
incumbent LEC, or the combining of an unbundled network element, or a
combination of unbundled network elements, with one or more such
facilities or services. Commingle means the act of commingling.
[[Page 17]]
Commission. Commission refers to the Federal Communications
Commission.
Day. Day means calendar day.
Dialing parity. The term dialing parity means that a person that is
not an affiliate of a local exchange carrier is able to provide
telecommunications services in such a manner that customers have the
ability to route automatically, without the use of any access code,
their telecommunications to the telecommunications service provider of
the customer's designation from among 2 or more telecommunications
service providers (including such local exchange carrier).
Directory assistance service. Directory assistance service includes,
but is not limited to, making available to customers, upon request,
information contained in directory listings.
Directory listings. Directory listings are any information:
(1) Identifying the listed names of subscribers of a
telecommunications carrier and such subscriber's telephone numbers,
addresses, or primary advertising classifications (as such
classifications are assigned at the time of the establishment of such
service), or any combination of such listed names, numbers, addresses or
classifications; and
(2) That the telecommunications carrier or an affiliate has
published, caused to be published, or accepted for publication in any
directory format.
Downstream database. A downstream database is a database owned and
operated by an individual carrier for the purpose of providing number
portability in conjunction with other functions and services.
Enhanced extended link. An enhanced extended link or EEL consists of
a combination of an unbundled loop and unbundled dedicated transport,
together with any facilities, equipment, or functions necessary to
combine those network elements.
Equipment necessary for interconnection or access to unbundled
network elements. For purposes of section 251(c)(2) of the Act, the
equipment used to interconnect with an incumbent local exchange
carrier's network for the transmission and routing of telephone exchange
service, exchange access service, or both. For the purposes of section
251(c)(3) of the Act, the equipment used to gain access to an incumbent
local exchange carrier's unbundled network elements for the provision of
a telecommunications service.
Fiber-based collocator. A fiber-based collocator is any carrier,
unaffiliated with the incumbent LEC, that maintains a collocation
arrangement in an incumbent LEC wire center, with active electrical
power supply, and operates a fiber-optic cable or comparable
transmission facility that
(1) Terminates at a collocation arrangement within the wire center;
(2) Leaves the incumbent LEC wire center premises; and
(3) Is owned by a party other than the incumbent LEC or any
affiliate of the incumbent LEC, except as set forth in this paragraph.
Dark fiber obtained from an incumbent LEC on an indefeasible right of
use basis shall be treated as non-incumbent LEC fiber-optic cable. Two
or more affiliated fiber-based collocators in a single wire center shall
collectively be counted as a single fiber-based collocator. For purposes
of this paragraph, the term affiliate is defined by 47 U.S.C. 153(1) and
any relevant interpretation in this Title.
Incumbent Local Exchange Carrier (Incumbent LEC). With respect to an
area, the local exchange carrier that:
(1) On February 8, 1996, provided telephone exchange service in such
area; and
(2)(i) On February 8, 1996, was deemed to be a member of the
exchange carrier association pursuant to Sec. 69.601(b) of this
chapter; or
(ii) Is a person or entity that, on or after February 8, 1996,
became a successor or assign of a member described in paragraph (2)(i)
of this section.
Information services. The term information services means the
offering of a capability for generating, acquiring, storing,
transforming, processing, retrieving, utilizing, or making available
information via telecommunications, and includes electronic publishing,
but does not include any use of any such capability for the management,
control, or operation of a telecommunications system or the management
of a telecommunications service.
[[Page 18]]
Interconnection. Interconnection is the linking of two networks for
the mutual exchange of traffic. This term does not include the transport
and termination of traffic.
Known disturber. An advanced services technology that is prone to
cause significant interference with other services deployed in the
network.
Intermodal. The term intermodal refers to facilities or technologies
other than those found in traditional telephone networks, but that are
utilized to provide competing services. Intermodal facilities or
technologies include, but are not limited to, traditional or new cable
plant, wireless technologies, and power line technologies.
Local Access and Transport Area (LATA). A Local Access and Transport
Area is a contiguous geographic area--
(1) Established before February 8, 1996 by a Bell operating company
such that no exchange area includes points within more than 1
metropolitan statistical area, consolidated metropolitan statistical
area, or State, except as expressly permitted under the AT&T Consent
Decree; or
(2) Established or modified by a Bell operating company after
February 8, 1996 and approved by the Commission.
Local Exchange Carrier (LEC). A LEC is any person that is engaged in
the provision of telephone exchange service or exchange access. Such
term does not include a person insofar as such person is engaged in the
provision of a commercial mobile service under section 332(c) of the
Act, except to the extent that the Commission finds that such service
should be included in the definition of the such term.
Maintenance and repair. Maintenance and repair involves the exchange
of information between telecommunications carriers where one initiates a
request for maintenance or repair of existing products and services or
unbundled network elements or combination thereof from the other with
attendant acknowledgements and status reports.
Meet point. A meet point is a point of interconnection between two
networks, designated by two telecommunications carriers, at which one
carrier's responsibility for service begins and the other carrier's
responsibility ends.
Meet point interconnection arrangement. A meet point interconnection
arrangement is an arrangement by which each telecommunications carrier
builds and maintains its network to a meet point.
Mobile wireless service. A mobile wireless service is any mobile
wireless telecommunications service, including any commercial mobile
radio service.
Multi-functional equipment. Multi-functional equipment is equipment
that combines one or more functions that are necessary for
interconnection or access to unbundled network elements with one or more
functions that would not meet that standard as stand-alone functions.
Network element. A network element is a facility or equipment used
in the provision of a telecommunications service. Such term also
includes, but is not limited to, features, functions, and capabilities
that are provided by means of such facility or equipment, including but
not limited to, subscriber numbers, databases, signaling systems, and
information sufficient for billing and collection or used in the
transmission, routing, or other provision of a telecommunications
service.
Operator services. Operator services are any automatic or live
assistance to a consumer to arrange for billing or completion of a
telephone call. Such services include, but are not limited to, busy line
verification, emergency interrupt, and operator-assisted directory
assistance services.
Physical collocation. Physical collocation is an offering by an
incumbent LEC that enables a requesting telecommunications carrier to:
(1) Place its own equipment to be used for interconnection or access
to unbundled network elements within or upon an incumbent LEC's
premises;
(2) Use such equipment to interconnect with an incumbent LEC's
network facilities for the transmission and routing of telephone
exchange service, exchange access service, or both, or to gain access to
an incumbent LEC's unbundled network elements for the provision of a
telecommunications service;
[[Page 19]]
(3) Enter those premises, subject to reasonable terms and
conditions, to install, maintain, and repair equipment necessary for
interconnection or access to unbundled elements; and
(4) Obtain reasonable amounts of space in an incumbent LEC's
premises, as provided in this part, for the equipment necessary for
interconnection or access to unbundled elements, allocated on a first-
come, first-served basis.
Premises. Premises refers to an incumbent LEC's central offices and
serving wire centers; all buildings or similar structures owned, leased,
or otherwise controlled by an incumbent LEC that house its network
facilities; all structures that house incumbent LEC facilities on public
rights-of-way, including but not limited to vaults containing loop
concentrators or similar structures; and all land owned, leased, or
otherwise controlled by an incumbent LEC that is adjacent to these
central offices, wire centers, buildings, and structures.
Pre-ordering and ordering. Pre-ordering and ordering includes the
exchange of information between telecommunications carriers about:
current or proposed customer products and services; or unbundled network
elements, or some combination thereof. This information includes loop
qualification information, such as the composition of the loop material,
including but not limited to: fiber optics or copper; the existence,
location and type of any electronic or other equipment on the loop,
including but not limited to, digital loop carrier or other remote
concentration devices, feeder/distribution interfaces, bridge taps, load
coils, pair-gain devices, disturbers in the same or adjacent binder
groups; the loop length, including the length and location of each type
of transmission media; the wire gauge(s) of the loop; and the electrical
parameters of the loop, which may determine the suitability of the loop
for various technologies.
Provisioning. Provisioning involves the exchange of information
between telecommunications carriers where one executes a request for a
set of products and services or unbundled network elements or
combination thereof from the other with attendant acknowledgements and
status reports.
Rural telephone company. A rural telephone company is a LEC
operating entity to the extent that such entity:
(1) Provides common carrier service to any local exchange carrier
study area that does not include either:
(i) Any incorporated place of 10,000 inhabitants or more, or any
part thereof, based on the most recently available population statistics
of the Bureau of the Census; or
(ii) Any territory, incorporated or unincorporated, included in an
urbanized area, as defined by the Bureau of the Census as of August 10,
1993;
(2) Provides telephone exchange service, including exchange access,
to fewer than 50,000 access lines;
(3) Provides telephone exchange service to any local exchange
carrier study area with fewer than 100,000 access lines; or
(4) Has less than 15 percent of its access lines in communities of
more than 50,000 on February 8, 1996.
Service control point. A service control point is a computer
database in the public switched network which contains information and
call processing instructions needed to process and complete a telephone
call.
Service creation environment. A service creation environment is a
computer containing generic call processing software that can be
programmed to create new advanced intelligent network call processing
services.
Service provider. A service provider is a provider of
telecommunications services or a provider of information services.
Signal transfer point. A signal transfer point is a packet switch
that acts as a routing hub for a signaling network and transfers
messages between various points in and among signaling networks.
State. The term state includes the District of Columbia and the
Territories and possessions.
State commission. A state commission means the commission, board, or
official (by whatever name designated) which under the laws of any state
has regulatory jurisdiction with respect to intrastate operations of
carriers. As referenced in this part, this term may
[[Page 20]]
include the Commission if it assumes responsibility for a proceeding or
matter, pursuant to section 252(e)(5) of the Act or Sec. 51.320. This
term shall also include any person or persons to whom the state
commission has delegated its authority under sections 251 and 252 of the
Act and this part.
State proceeding. A state proceeding is any administrative
proceeding in which a state commission may approve or prescribe rates,
terms, and conditions including, but not limited to, compulsory
arbitration pursuant to section 252(b) of the Act, review of a Bell
operating company statement of generally available terms pursuant to
section 252(f) of the Act, and a proceeding to determine whether to
approve or reject an agreement adopted by arbitration pursuant to
section 252(e) of the Act.
Technically feasible. Interconnection, access to unbundled network
elements, collocation, and other methods of achieving interconnection or
access to unbundled network elements at a point in the network shall be
deemed technically feasible absent technical or operational concerns
that prevent the fulfillment of a request by a telecommunications
carrier for such interconnection, access, or methods. A determination of
technical feasibility does not include consideration of economic,
accounting, billing, space, or site concerns, except that space and site
concerns may be considered in circumstances where there is no
possibility of expanding the space available. The fact that an incumbent
LEC must modify its facilities or equipment to respond to such request
does not determine whether satisfying such request is technically
feasible. An incumbent LEC that claims that it cannot satisfy such
request because of adverse network reliability impacts must prove to the
state commission by clear and convincing evidence that such
interconnection, access, or methods would result in specific and
significant adverse network reliability impacts.
Telecommunications carrier. A telecommunications carrier is any
provider of telecommunications services, except that such term does not
include aggregators of telecommunications services (as defined in
section 226 of the Act). A telecommunications carrier shall be treated
as a common carrier under the Act only to the extent that it is engaged
in providing telecommunications services, except that the Commission
shall determine whether the provision of fixed and mobile satellite
service shall be treated as common carriage. This definition includes
CMRS providers, interexchange carriers (IXCs) and, to the extent they
are acting as telecommunications carriers, companies that provide both
telecommunications and information services. Private Mobile Radio
Service providers are telecommunications carriers to the extent they
provide domestic or international telecommunications for a fee directly
to the public.
Telecommunications service. The term telecommunications service
refers to the offering of telecommunications for a fee directly to the
public, or to such classes of users as to be effectively available
directly to the public, regardless of the facilities used.
Telephone exchange service. A telephone exchange service is:
(1) A service within a telephone exchange, or within a connected
system of telephone exchanges within the same exchange area operated to
furnish to subscribers intercommunicating service of the character
ordinarily furnished by a single exchange, and which is covered by the
exchange service charge, or
(2) A comparable service provided through a system of switches,
transmission equipment, or other facilities (or combination thereof) by
which a subscriber can originate and terminate a telecommunications
service.
Telephone toll service. The term telephone toll service refers to
telephone service between stations in different exchange areas for which
there is made a separate charge not included in contracts with
subscribers for exchange service.
Unreasonable dialing delay. For the same type of calls, dialing
delay is ``unreasonable'' when the dialing delay experienced by the
customer of a competing provider is greater than that experienced by a
customer of the LEC providing dialing parity, or nondiscriminatory
access to operator services or directory assistance.
[[Page 21]]
Triennial Review Order. The Triennial Review Order means the
Commission's Report and Order and Order on Remand and Further Notice of
Proposed Rulemaking in CC Docket Nos. 01-338, 96-98, and 98-147.
Triennial Review Remand Order. The Triennial Review Remand Order is
the Commission's Order on Remand in CC Docket Nos. 01-338 and 04-313
(released February 4, 2005).
Virtual collocation. Virtual collocation is an offering by an
incumbent LEC that enables a requesting telecommunications carrier to:
(1) Designate or specify equipment to be used for interconnection or
access to unbundled network elements to be located within or upon an
incumbent LEC's premises, and dedicated to such telecommunications
carrier's use;
(2) Use such equipment to interconnect with an incumbent LEC's
network facilities for the transmission and routing of telephone
exchange service, exchange access service, or both, or for access to an
incumbent LEC's unbundled network elements for the provision of a
telecommunications service; and
(3) Electronically monitor and control its communications channels
terminating in such equipment.
Wire center. A wire center is the location of an incumbent LEC local
switching facility containing one or more central offices, as defined in
the Appendix to part 36 of this chapter. The wire center boundaries
define the area in which all customers served by a given wire center are
located.
[61 FR 45619, Aug. 29, 1996, as amended at 61 FR 47348, Sept. 6, 1996;
64 FR 23241, Apr. 30, 1999; 65 FR 1344, Jan. 10, 2000; 65 FR 2550, Jan.
18, 2000; 65 FR 54438, Sept. 8, 2000; 66 FR 43521, Aug. 20, 2001; 68 FR
52293, Sept. 2, 2003; 70 FR 8952, Feb. 24, 2005]
Subpart B_Telecommunications Carriers
Sec. 51.100 General duty.
(a) Each telecommunications carrier has the duty:
(1) To interconnect directly or indirectly with the facilities and
equipment of other telecommunications carriers; and
(2) To not install network features, functions, or capabilities that
do not comply with the guidelines and standards as provided in the
Commission's rules or section 255 or 256 of the Act.
(b) A telecommunication carrier that has interconnected or gained
access under sections 251(a)(1), 251(c)(2), or 251(c)(3) of the Act, may
offer information services through the same arrangement, so long as it
is offering telecommunications services through the same arrangement as
well.
Subpart C_Obligations of All Local Exchange Carriers
Sec. 51.201 Resale.
The rules governing resale of services by an incumbent LEC are set
forth in subpart G of this part.
Sec. 51.203 Number portability.
The rules governing number portability are set forth in part 52,
subpart C of this chapter.
Sec. 51.205 Dialing parity: General.
A local exchange carrier (LEC) shall provide local and toll dialing
parity to competing providers of telephone exchange service or telephone
toll service, with no unreasonable dialing delays. Dialing parity shall
be provided for all originating telecommunications services that require
dialing to route a call.
[61 FR 47349, Sept. 6, 1996]
Sec. 51.207 Local dialing parity.
A LEC shall permit telephone exchange service customers within a
local calling area to dial the same number of digits to make a local
telephone call notwithstanding the identity of the customer's or the
called party's telecommunications service provider.
[61 FR 47349, Sept. 6, 1996]
Sec. 51.209 Toll dialing parity.
(a) A LEC shall implement throughout each state in which it offers
telephone exchange service intraLATA and interLATA toll dialing parity
based on LATA boundaries. When a single LATA covers more than one state,
the LEC
[[Page 22]]
shall use the implementation procedures that each state has approved for
the LEC within that state's borders.
(b) A LEC shall implement toll dialing parity through a
presubscription process that permits a customer to select a carrier to
which all designated calls on a customer's line will be routed
automatically. LECs shall allow a customer to presubscribe, at a
minimum, to one telecommunications carrier for all interLATA toll calls
and to presubscribe to the same or to another telecommunications carrier
for all intraLATA toll calls.
(c) A LEC may not assign automatically a customer's intraLATA toll
traffic to itself, to its subsidiaries or affiliates, to the customer's
presubscribed interLATA or interstate toll carrier, or to any other
carrier, except when, in a state that already has implemented
intrastate, intraLATA toll dialing parity, the subscriber has selected
the same presubscribed carrier for both intraLATA and interLATA toll
calls.
(d) Notwithstanding the requirements of paragraphs (a) and (b) of
this section, states may require that toll dialing parity be based on
state boundaries if it deems that the provision of intrastate and
interstate toll dialing parity is procompetitive and otherwise in the
public interest.
[61 FR 47349, Sept. 6, 1996]
Sec. 51.213 Toll dialing parity implementation plans.
(a) A LEC must file a plan for providing intraLATA toll dialing
parity throughout each state in which it offers telephone exchange
service. A LEC cannot offer intraLATA toll dialing parity within a state
until the implementation plan has been approved by the appropriate state
commission or the Commission.
(b) A LEC's implementation plan must include:
(1) A proposal that explains how the LEC will offer intraLATA toll
dialing parity for each exchange that the LEC operates in the state, in
accordance with the provisions of this section, and a proposed time
schedule for implementation; and
(2) A proposal for timely notification of its subscribers and the
methods it proposes to use to enable subscribers to affirmatively select
an intraLATA toll service provider.
(3) A LEC that is not a BOC also shall identify the LATA with which
it will associate for the purposes of providing intraLATA and interLATA
toll dialing parity under this subpart.
[61 FR 47349, Sept. 6, 1996, as amended at 71 FR 65750, Nov. 9, 2006]
Sec. 51.215 Dialing parity: Cost recovery.
(a) A LEC may recover the incremental costs necessary for the
implementation of toll dialing parity. The LEC must recover such costs
from all providers of telephone exchange service and telephone toll
service in the area served by the LEC, including that LEC. The LEC shall
use a cost recovery mechanism established by the state.
(b) Any cost recovery mechanism for the provision of toll dialing
parity pursuant to this section that a state adopts must not:
(1) Give one service provider an appreciable cost advantage over
another service provider, when competing for a specific subscriber
(i.e., the recovery mechanism may not have a disparate effect on the
incremental costs of competing service providers seeking to serve the
same customer); or
(2) Have a disparate effect on the ability of competing service
providers to earn a normal return on their investment.
[61 FR 47350, Sept. 6, 1996]
Sec. 51.217 Nondiscriminatory access: Telephone numbers, operator
services, directory assistance services, and directory listings.
(a) Definitions. As used in this section, the following definitions
apply:
(1) Competing provider. A ``competing provider'' is a provider of
telephone exchange or telephone toll services that seeks
nondiscriminatory access from a local exchange carrier (LEC) in that
LEC's service area.
(2) Nondiscriminatory access. ``Nondiscriminatory access'' refers to
access to telephone numbers, operator services, directory assistance and
directory listings that is at least equal to the access that the
providing local exchange carrier (LEC) itself receives.
Nondiscriminatory access includes, but is not limited to:
[[Page 23]]
(i) Nondiscrimination between and among carriers in the rates,
terms, and conditions of the access provided; and
(ii) The ability of the competing provider to obtain access that is
at least equal in quality to that of the providing LEC.
(3) Providing local exchange carrier (LEC). A ``providing local
exchange carrier'' is a local exchange carrier (LEC) that is required to
permit nondiscriminatory access to a competing provider.
(b) General rule. A local exchange carrier (LEC) that provides
operator services, directory assistance services or directory listings
to its customers, or provides telephone numbers, shall permit competing
providers of telephone exchange service or telephone toll service to
have nondiscriminatory access to that service or feature, with no
unreasonable dialing delays.
(c) Specific requirements. A LEC subject to paragraph (b) of this
section must also comply with the following requirements:
(1) Telephone numbers. A LEC shall permit competing providers to
have access to telephone numbers that is identical to the access that
the LEC provides to itself.
(2) Operator services. A LEC must permit telephone service customers
to connect to the operator services offered by that customer's chosen
local service provider by dialing ``0,'' or ``0'' plus the desired
telephone number, regardless of the identity of the customer's local
telephone service provider.
(3) Directory assistance services and directory listings--(i) Access
to directory assistance. A LEC shall permit competing providers to have
access to its directory assistance services, including directory
assistance databases, so that any customer of a competing provider can
obtain directory listings, except as provided in paragraph (c)(3)(iv) of
this section, on a nondiscriminatory basis, notwithstanding the identity
of the customer's local service provider, or the identity of the
provider for the customer whose listing is requested. A LEC must supply
access to directory assistance in the manner specified by the competing
provider, including transfer of the LECs' directory assistance databases
in readily accessible magnetic tape, electronic or other convenient
format, as provided in paragraph (c)(3)(iii) of this section. Updates to
the directory assistance database shall be made in the same format as
the initial transfer (unless the requesting LEC requests otherwise), and
shall be performed in a timely manner, taking no longer than those made
to the providing LEC's own database. A LEC shall accept the listings of
those customers served by competing providers for inclusion in its
directory assistance/operator services databases.
(ii) Access to directory listings. A LEC that compiles directory
listings shall share directory listings with competing providers in the
manner specified by the competing provider, including readily accessible
tape or electronic formats, as provided in paragraph (c)(3)(iii) of this
section. Such data shall be provided in a timely fashion.
(iii) Format. A LEC shall provide access to its directory assistance
services, including directory assistance databases, and to its directory
listings in any format the competing provider specifies, if the LEC's
internal systems can accommodate that format.
(A) If a LEC's internal systems do not permit it provide directory
assistance or directory listings in the format the specified by the
competing provider, the LEC shall:
(1) Within thirty days of receiving the request, inform the
competing provider that the requested format cannot be accommodated and
tell the requesting provider which formats can be accommodated; and
(2) Provide the requested directory assistance or directory listings
in the format the competing provider chooses from among the available
formats.
(B) [Reserved]
(iv) Unlisted numbers. A LEC shall not provide access to unlisted
telephone numbers, or other information that its customer has asked the
LEC not to make available, with the exception of customer name and
address. The LEC shall ensure that access is permitted to the same
directory information, including customer name and address, that is
available to its own directory assistance customers.
[[Page 24]]
(v) Adjuncts to services. Operator services and directory assistance
services must be made available to competing providers in their
entirety, including access to any adjunct features (e.g., rating tables
or customer information databases) necessary to allow competing
providers full use of these services.
(d) Branding of operator services and directory assistance services.
The refusal of a providing local exchange carrier (LEC) to comply with
the reasonable request of a competing provider that the providing LEC
rebrand its operator services and directory assistance, or remove its
brand from such services, creates a presumption that the providing LEC
is unlawfully restricting access to its operator services and directory
assistance. The providing LEC can rebut this presumption by
demonstrating that it lacks the capability to comply with the competing
provider's request.
(e) Disputes--(1) Disputes involving nondiscriminatory access. In
disputes involving nondiscriminatory access to operator services,
directory assistance services, or directory listings, a providing LEC
shall bear the burden of demonstrating with specificity:
(i) That it is permitting nondiscriminatory access, and
(ii) That any disparity in access is not caused by factors within
its control. ``Factors within its control'' include, but are not limited
to, physical facilities, staffing, the ordering of supplies or
equipment, and maintenance.
(2) Disputes involving unreasonable dialing delay. In disputes
between providing local exchange carriers (LECs) and competing providers
involving unreasonable dialing delay in the provision of access to
operator services and directory assistance, the burden of proof is on
the providing LEC to demonstrate with specificity that it is processing
the calls of the competing provider's customers on terms equal to that
of similar calls from the providing LEC's own customers.
[61 FR 47350, Sept. 6, 1996, as amended at 64 FR 51911, Sept. 27, 1999]
Effective Date Note: At 64 FR 51911, Sept. 27, 1999, Sec. 51.217
was amended by revising paragraph (c)(3). This paragraph contains
information collection and recordkeeping requirements and will not
become effective until approval has been given by the Office of
Management and Budget.
Sec. 51.219 Access to rights of way.
The rules governing access to rights of way are set forth in part 1,
subpart J of this chapter.
Sec. 51.221 Reciprocal compensation.
The rules governing reciprocal compensation are set forth in subpart
H of this part.
Sec. 51.223 Application of additional requirements.
(a) A state may not impose the obligations set forth in section
251(c) of the Act on a LEC that is not classified as an incumbent LEC as
defined in section 251(h)(1) of the Act, unless the Commission issues an
order declaring that such LECs or classes or categories of LECs should
be treated as incumbent LECs.
(b) A state commission, or any other interested party, may request
that the Commission issue an order declaring that a particular LEC be
treated as an incumbent LEC, or that a class or category of LECs be
treated as incumbent LECs, pursuant to section 251(h)(2) of the Act.
Sec. 51.230 Presumption of acceptability for deployment of an
advanced services loop technology.
(a) An advanced services loop technology is presumed acceptable for
deployment under any one of the following circumstances, where the
technology:
(1) Complies with existing industry standards; or
(2) Is approved by an industry standards body, the Commission, or
any state commission; or
(3) Has been successfully deployed by any carrier without
significantly degrading the performance of other services.
(b) An incumbent LEC may not deny a carrier's request to deploy a
technology that is presumed acceptable for deployment unless the
incumbent LEC demonstrates to the relevant state commission that
deployment of the particular technology will significantly degrade the
performance of other advanced services or traditional voiceband
services.
[[Page 25]]
(c) Where a carrier seeks to establish that deployment of a
technology falls within the presumption of acceptability under paragraph
(a)(3) of this section, the burden is on the requesting carrier to
demonstrate to the state commission that its proposed deployment meets
the threshold for a presumption of acceptability and will not, in fact,
significantly degrade the performance of other advanced services or
traditional voice band services. Upon a successful demonstration by the
requesting carrier before a particular state commission, the deployed
technology shall be presumed acceptable for deployment in other areas.
[65 FR 1345, Jan. 10, 2000]
Sec. 51.231 Provision of information on advanced services deployment.
(a) An incumbent LEC must provide to requesting carriers that seek
access to a loop or high frequency portion of the loop to provide
advanced services:
(1) Uses in determining which services can be deployed; and
information with respect to the spectrum management procedures and
policies that the incumbent LEC.
(2) Information with respect to the rejection of the requesting
carrier's provision of advanced services, together with the specific
reason for the rejection; and
(3) Information with respect to the number of loops using advanced
services technology within the binder and type of technology deployed on
those loops.
(b) A requesting carrier that seeks access to a loop or a high
frequency portion of a loop to provide advanced services must provide to
the incumbent LEC information on the type of technology that the
requesting carrier seeks to deploy.
(1) Where the requesting carrier asserts that the technology it
seeks to deploy fits within a generic power spectral density (PSD) mask,
it also must provide Spectrum Class information for the technology.
(2) Where a requesting carrier relies on a calculation-based
approach to support deployment of a particular technology, it must
provide the incumbent LEC with information on the speed and power at
which the signal will be transmitted.
(c) The requesting carrier also must provide the information
required under paragraph (b) of this section when notifying the
incumbent LEC of any proposed change in advanced services technology
that the carrier uses on the loop.
[65 FR 1345, Jan. 10, 2000]
Sec. 51.232 Binder group management.
(a) With the exception of loops on which a known disturber is
deployed, the incumbent LEC shall be prohibited from designating,
segregating or reserving particular loops or binder groups for use
solely by any particular advanced services loop technology.
(b) Any party seeking designation of a technology as a known
disturber should file a petition for declaratory ruling with the
Commission seeking such designation, pursuant to Sec. 1.2 of this
chapter.
[65 FR 1346, Jan. 10, 2000]
Sec. 51.233 Significant degradation of services caused by deployment
of advanced services.
(a) Where a carrier claims that a deployed advanced service is
significantly degrading the performance of other advanced services or
traditional voiceband services, that carrier must notify the deploying
carrier and allow the deploying carrier a reasonable opportunity to
correct the problem. Where the carrier whose services are being degraded
does not know the precise cause of the degradation, it must notify each
carrier that may have caused or contributed to the degradation.
(b) Where the degradation asserted under paragraph (a) of this
section remains unresolved by the deploying carrier(s) after a
reasonable opportunity to correct the problem, the carrier whose
services are being degraded must establish before the relevant state
commission that a particular technology deployment is causing the
significant degradation.
(c) Any claims of network harm presented to the deploying carrier(s)
or, if subsequently necessary, the relevant state commission, must be
supported
[[Page 26]]
with specific and verifiable information.
(d) Where a carrier demonstrates that a deployed technology is
significantly degrading the performance of other advanced services or
traditional voice band services, the carrier deploying the technology
shall discontinue deployment of that technology and migrate its
customers to technologies that will not significantly degrade the
performance of other such services.
(e) Where the only degraded service itself is a known disturber, and
the newly deployed technology satisfies at least one of the criteria for
a presumption that it is acceptable for deployment under Sec. 51.230,
the degraded service shall not prevail against the newly-deployed
technology.
[65 FR 1346, Jan. 10, 2000]
Subpart D_Additional Obligations of Incumbent Local Exchange Carriers
Sec. 51.301 Duty to negotiate.
(a) An incumbent LEC shall negotiate in good faith the terms and
conditions of agreements to fulfill the duties established by sections
251 (b) and (c) of the Act.
(b) A requesting telecommunications carrier shall negotiate in good
faith the terms and conditions of agreements described in paragraph (a)
of this section.
(c) If proven to the Commission, an appropriate state commission, or
a court of competent jurisdiction, the following actions or practices,
among others, violate the duty to negotiate in good faith:
(1) Demanding that another party sign a nondisclosure agreement that
precludes such party from providing information requested by the
Commission, or a state commission, or in support of a request for
arbitration under section 252(b)(2)(B) of the Act;
(2) Demanding that a requesting telecommunications carrier attest
that an agreement complies with all provisions of the Act, federal
regulations, or state law;
(3) Refusing to include in an arbitrated or negotiated agreement a
provision that permits the agreement to be amended in the future to take
into account changes in Commission or state rules;
(4) Conditioning negotiation on a requesting telecommunications
carrier first obtaining state certifications;
(5) Intentionally misleading or coercing another party into reaching
an agreement that it would not otherwise have made;
(6) Intentionally obstructing or delaying negotiations or
resolutions of disputes;
(7) Refusing throughout the negotiation process to designate a
representative with authority to make binding representations, if such
refusal significantly delays resolution of issues; and
(8) Refusing to provide information necessary to reach agreement.
Such refusal includes, but is not limited to:
(i) Refusal by an incumbent LEC to furnish information about its
network that a requesting telecommunications carrier reasonably requires
to identify the network elements that it needs in order to serve a
particular customer; and
(ii) Refusal by an incumbent LEC to furnish cost data that would be
relevant to setting rates if the parties were in arbitration.
[61 FR 45619, Aug. 29, 1996, as amended at 68 FR 52294, Sept. 2, 2003]
Sec. 51.303 Preexisting agreements.
(a) All interconnection agreements between an incumbent LEC and a
telecommunications carrier, including those negotiated before February
8, 1996, shall be submitted by the parties to the appropriate state
commission for approval pursuant to section 252(e) of the Act.
(b) Interconnection agreements negotiated before February 8, 1996,
between Class A carriers, as defined by Sec. 32.11(a)(1) of this
chapter, shall be filed by the parties with the appropriate state
commission no later than June 30, 1997, or such earlier date as the
state commission may require.
(c) If a state commission approves a preexisting agreement, it shall
be made available to other parties in accordance with section 252(i) of
the Act and Sec. 51.809 of this part. A state commission may reject a
preexisting agreement on the grounds that it is inconsistent with
[[Page 27]]
the public interest, or for other reasons set forth in section
252(e)(2)(A) of the Act.
Sec. 51.305 Interconnection.
(a) An incumbent LEC shall provide, for the facilities and equipment
of any requesting telecommunications carrier, interconnection with the
incumbent LEC's network:
(1) For the transmission and routing of telephone exchange traffic,
exchange access traffic, or both;
(2) At any technically feasible point within the incumbent LEC's
network including, at a minimum:
(i) The line-side of a local switch;
(ii) The trunk-side of a local switch;
(iii) The trunk interconnection points for a tandem switch;
(iv) Central office cross-connect points;
(v) Out-of-band signaling transfer points necessary to exchange
traffic at these points and access call-related databases; and
(vi) The points of access to unbundled network elements as described
in Sec. 51.319;
(3) That is at a level of quality that is equal to that which the
incumbent LEC provides itself, a subsidiary, an affiliate, or any other
party. At a minimum, this requires an incumbent LEC to design
interconnection facilities to meet the same technical criteria and
service standards that are used within the incumbent LEC's network. This
obligation is not limited to a consideration of service quality as
perceived by end users, and includes, but is not limited to, service
quality as perceived by the requesting telecommunications carrier; and
(4) On terms and conditions that are just, reasonable, and
nondiscriminatory in accordance with the terms and conditions of any
agreement, the requirements of sections 251 and 252 of the Act, and the
Commission's rules including, but not limited to, offering such terms
and conditions equally to all requesting telecommunications carriers,
and offering such terms and conditions that are no less favorable than
the terms and conditions upon which the incumbent LEC provides such
interconnection to itself. This includes, but is not limited to, the
time within which the incumbent LEC provides such interconnection.
(b) A carrier that requests interconnection solely for the purpose
of originating or terminating its interexchange traffic on an incumbent
LEC's network and not for the purpose of providing to others telephone
exchange service, exchange access service, or both, is not entitled to
receive interconnection pursuant to section 251(c)(2) of the Act.
(c) Previous successful interconnection at a particular point in a
network, using particular facilities, constitutes substantial evidence
that interconnection is technically feasible at that point, or at
substantially similar points, in networks employing substantially
similar facilities. Adherence to the same interface or protocol
standards shall constitute evidence of the substantial similarity of
network facilities.
(d) Previous successful interconnection at a particular point in a
network at a particular level of quality constitutes substantial
evidence that interconnection is technically feasible at that point, or
at substantially similar points, at that level of quality.
(e) An incumbent LEC that denies a request for interconnection at a
particular point must prove to the state commission that interconnection
at that point is not technically feasible.
(f) If technically feasible, an incumbent LEC shall provide two-way
trunking upon request.
(g) An incumbent LEC shall provide to a requesting
telecommunications carrier technical information about the incumbent
LEC's network facilities sufficient to allow the requesting carrier to
achieve interconnection consistent with the requirements of this
section.
[61 FR 45619, Aug. 29, 1996, as amended at 61 FR 47351, Sept. 6, 1996;
68 FR 52294, Sept. 2, 2003]
Sec. 51.307 Duty to provide access on an unbundled basis to network
elements.
(a) An incumbent LEC shall provide, to a requesting
telecommunications carrier for the provision of a telecommunications
service, nondiscriminatory access to network elements on
[[Page 28]]
an unbundled basis at any technically feasible point on terms and
conditions that are just, reasonable, and nondiscriminatory in
accordance with the terms and conditions of any agreement, the
requirements of sections 251 and 252 of the Act, and the Commission's
rules.
(b) The duty to provide access to unbundled network elements
pursuant to section 251(c)(3) of the Act includes a duty to provide a
connection to an unbundled network element independent of any duty to
provide interconnection pursuant to this part and section 251(c)(2) of
the Act.
(c) An incumbent LEC shall provide a requesting telecommunications
carrier access to an unbundled network element, along with all of the
unbundled network element's features, functions, and capabilities, in a
manner that allows the requesting telecommunications carrier to provide
any telecommunications service that can be offered by means of that
network element.
(d) An incumbent LEC shall provide a requesting telecommunications
carrier access to the facility or functionality of a requested network
element separate from access to the facility or functionality of other
network elements, for a separate charge.
(e) An incumbent LEC shall provide to a requesting
telecommunications carrier technical information about the incumbent
LEC's network facilities sufficient to allow the requesting carrier to
achieve access to unbundled network elements consistent with the
requirements of this section.
[61 FR 45619, Aug. 29, 1996, as amended at 61 FR 47351, Sept. 6, 1996]
Sec. 51.309 Use of unbundled network elements.
(a) Except as provided in Sec. 51.318, an incumbent LEC shall not
impose limitations, restrictions, or requirements on requests for, or
the use of, unbundled network elements for the service a requesting
telecommunications carrier seeks to offer.
(b) A requesting telecommunications carrier may not access an
unbundled network element for the exclusive provision of mobile wireless
services or interexchange services.
(c) A telecommunications carrier purchasing access to an unbundled
network facility is entitled to exclusive use of that facility for a
period of time, or when purchasing access to a feature, function, or
capability of a facility, a telecommunications carrier is entitled to
use of that feature, function, or capability for a period of time. A
telecommunications carrier's purchase of access to an unbundled network
element does not relieve the incumbent LEC of the duty to maintain,
repair, or replace the unbundled network element.
(d) A requesting telecommunications carrier that accesses and uses
an unbundled network element consistent with paragraph (b) of this
section may provide any telecommunications services over the same
unbundled network element.
(e) Except as provided in Sec. 51.318, an incumbent LEC shall
permit a requesting telecommunications carrier to commingle an unbundled
network element or a combination of unbundled network elements with
wholesale services obtained from an incumbent LEC.
(f) Upon request, an incumbent LEC shall perform the functions
necessary to commingle an unbundled network element or a combination of
unbundled network elements with one or more facilities or services that
a requesting telecommunications carrier has obtained at wholesale from
an incumbent LEC.
(g) An incumbent LEC shall not deny access to an unbundled network
element or a combination of unbundled network elements on the grounds
that one or more of the elements:
(1) Is connected to, attached to, linked to, or combined with, a
facility or service obtained from an incumbent LEC; or
(2) Shares part of the incumbent LEC's network with access services
or inputs for mobile wireless services and/or interexchange services.
[61 FR 45619, Aug. 29, 1996, as amended at 68 FR 52294, Sept. 2, 2003;
70 FR 8952, Feb. 24, 2005]
Sec. 51.311 Nondiscriminatory access to unbundled network elements.
(a) The quality of an unbundled network element, as well as the
quality of
[[Page 29]]
the access to the unbundled network element, that an incumbent LEC
provides to a requesting telecommunications carrier shall be the same
for all telecommunications carriers requesting access to that network
element.
(b) To the extent technically feasible, the quality of an unbundled
network element, as well as the quality of the access to such unbundled
network element, that an incumbent LEC provides to a requesting
telecommunications carrier shall be at least equal in quality to that
which the incumbent LEC provides to itself. If an incumbent LEC fails to
meet this requirement, the incumbent LEC must prove to the state
commission that it is not technically feasible to provide the requested
unbundled network element, or to provide access to the requested
unbundled network element, at a level of quality that is equal to that
which the incumbent LEC provides to itself.
(c) Previous successful access to an unbundled element at a
particular point in a network, using particular facilities, is
substantial evidence that access is technically feasible at that point,
or at substantially similar points, in networks employing substantially
similar facilities. Adherence to the same interface or protocol
standards shall constitute evidence of the substantial similarity of
network facilities.
(d) Previous successful provision of access to an unbundled element
at a particular point in a network at a particular level of quality is
substantial evidence that access is technically feasible at that point,
or at substantially similar points, at that level of quality.
[61 FR 45619, Aug. 29, 1996, as amended at 68 FR 52294, Sept. 2, 2003]
Sec. 51.313 Just, reasonable and nondiscriminatory terms and
conditions for the provision of unbundled network elements.
(a) The terms and conditions pursuant to which an incumbent LEC
provides access to unbundled network elements shall be offered equally
to all requesting telecommunications carriers.
(b) Where applicable, the terms and conditions pursuant to which an
incumbent LEC offers to provide access to unbundled network elements,
including but not limited to, the time within which the incumbent LEC
provisions such access to unbundled network elements, shall, at a
minimum, be no less favorable to the requesting carrier than the terms
and conditions under which the incumbent LEC provides such elements to
itself.
(c) An incumbent LEC must provide a carrier purchasing access to
unbundled network elements with the pre-ordering, ordering,
provisioning, maintenance and repair, and billing functions of the
incumbent LEC's operations support systems.
Sec. 51.315 Combination of unbundled network elements.
(a) An incumbent LEC shall provide unbundled network elements in a
manner that allows requesting telecommunications carriers to combine
such network elements in order to provide a telecommunications service.
(b) Except upon request, an incumbent LEC shall not separate
requested network elements that the incumbent LEC currently combines.
(c) Upon request, an incumbent LEC shall perform the functions
necessary to combine unbundled network elements in any manner, even if
those elements are not ordinarily combined in the incumbent LEC's
network, provided that such combination:
(1) Is technically feasible; and
(2) Would not undermine the ability of other carriers to obtain
access to unbundled network elements or to interconnect with the
incumbent LEC's network.
(d) Upon request, an incumbent LEC shall perform the functions
necessary to combine unbundled network elements with elements possessed
by the requesting telecommunications carrier in any technically feasible
manner.
(e) An incumbent LEC that denies a request to combine elements
pursuant to paragraph (c)(1) or paragraph (d) of this section must prove
to the state commission that the requested combination is not
technically feasible.
(f) An incumbent LEC that denies a request to combine unbundled
network elements pursuant to paragraph (c)(2) of this section must
demonstrate to the state commission that the requested combination would
undermine
[[Page 30]]
the ability of other carriers to obtain access to unbundled network
elements or to interconnect with the incumbent LEC's network.
[61 FR 45619, Aug. 29, 1996, as amended at 68 FR 52294, Sept. 2, 2003]
Sec. 51.316 Conversion of unbundled network elements and services.
(a) Upon request, an incumbent LEC shall convert a wholesale
service, or group of wholesale services, to the equivalent unbundled
network element, or combination of unbundled network elements, that is
available to the requesting telecommunications carrier under section
251(c)(3) of the Act and this part.
(b) An incumbent LEC shall perform any conversion from a wholesale
service or group of wholesale services to an unbundled network element
or combination of unbundled network elements without adversely affecting
the service quality perceived by the requesting telecommunications
carrier's end-user customer.
(c) Except as agreed to by the parties, an incumbent LEC shall not
impose any untariffed termination charges, or any disconnect fees, re-
connect fees, or charges associated with establishing a service for the
first time, in connection with any conversion between a wholesale
service or group of wholesale services and an unbundled network element
or combination of unbundled network elements.
[68 FR 52294, Sept. 2, 2003]
Sec. 51.317 Standards for requiring the unbundling of network elements.
(a) Proprietary network elements. A network element shall be
considered to be proprietary if an incumbent LEC can demonstrate that it
has invested resources to develop proprietary information or
functionalities that are protected by patent, copyright or trade secret
law. The Commission shall undertake the following analysis to determine
whether a proprietary network element should be made available for
purposes of section 251(c)(3) of the Act:
(1) Determine whether access to the proprietary network element is
``necessary.'' A network element is ``necessary'' if, taking into
consideration the availability of alternative elements outside the
incumbent LEC's network, including self-provisioning by a requesting
telecommunications carrier or acquiring an alternative from a third-
party supplier, lack of access to the network element precludes a
requesting telecommunications carrier from providing the services that
it seeks to offer. If access is ``necessary,'' the Commission may
require the unbundling of such proprietary network element.
(2) In the event that such access is not ``necessary,'' the
Commission may require unbundling if it is determined that:
(i) The incumbent LEC has implemented only a minor modification to
the network element in order to qualify for proprietary treatment;
(ii) The information or functionality that is proprietary in nature
does not differentiate the incumbent LEC's services from the requesting
telecommunications carrier's services; or
(iii) Lack of access to such element would jeopardize the goals of
the Act.
(b) Non-proprietary network elements. The Commission shall determine
whether a non-proprietary network element should be made available for
purposes of section 251(c)(3) of the Act by analyzing, at a minimum,
whether lack of access to a non-proprietary network element ``impairs''
a requesting carrier's ability to provide the service it seeks to offer.
A requesting carrier's ability to provide service is ``impaired'' if,
taking into consideration the availability of alternative elements
outside the incumbent LEC's network, including elements self-provisioned
by the requesting carrier or acquired as an alternative from a third-
party supplier, lack of access to that element poses a barrier or
barriers to entry, including operational and economic barriers, that are
likely to make entry into a market by a reasonably efficient competitor
uneconomic.
[70 FR 8952, Feb. 24, 2005]
Sec. 51.318 Eligibility criteria for access to certain unbundled
network elements.
(a) Except as provided in paragraph (b) of this section, an
incumbent LEC
[[Page 31]]
shall provide access to unbundled network elements and combinations of
unbundled network elements without regard to whether the requesting
telecommunications carrier seeks access to the elements to establish a
new circuit or to convert an existing circuit from a service to
unbundled network elements.
(b) An incumbent LEC need not provide access to an unbundled DS1
loop in combination, or commingled, with a dedicated DS1 transport or
dedicated DS3 transport facility or service, or to an unbundled DS3 loop
in combination, or commingled, with a dedicated DS3 transport facility
or service, or an unbundled dedicated DS1 transport facility in
combination, or commingled, with an unbundled DS1 loop or a DS1 channel
termination service, or to an unbundled dedicated DS3 transport facility
in combination, or commingled, with an unbundled DS1 loop or a DS1
channel termination service, or to an unbundled DS3 loop or a DS3
channel termination service, unless the requesting telecommunications
carrier certifies that all of the following conditions are met:
(1) The requesting telecommunications carrier has received state
certification to provide local voice service in the area being served
or, in the absence of a state certification requirement, has complied
with registration, tariffing, filing fee, or other regulatory
requirements applicable to the provision of local voice service in that
area.
(2) The following criteria are satisfied for each combined circuit,
including each DS1 circuit, each DS1 enhanced extended link, and each
DS1-equivalent circuit on a DS3 enhanced extended link:
(i) Each circuit to be provided to each customer will be assigned a
local number prior to the provision of service over that circuit;
(ii) Each DS1-equivalent circuit on a DS3 enhanced extended link
must have its own local number assignment, so that each DS3 must have at
least 28 local voice numbers assigned to it;
(iii) Each circuit to be provided to each customer will have 911 or
E911 capability prior to the provision of service over that circuit;
(iv) Each circuit to be provided to each customer will terminate in
a collocation arrangement that meets the requirements of paragraph (c)
of this section;
(v) Each circuit to be provided to each customer will be served by
an interconnection trunk that meets the requirements of paragraph (d) of
this section;
(vi) For each 24 DS1 enhanced extended links or other facilities
having equivalent capacity, the requesting telecommunications carrier
will have at least one active DS1 local service interconnection trunk
that meets the requirements of paragraph (d) of this section; and
(vii) Each circuit to be provided to each customer will be served by
a switch capable of switching local voice traffic.
(c) A collocation arrangement meets the requirements of this
paragraph if it is:
(1) Established pursuant to section 251(c)(6) of the Act and located
at an incumbent LEC premises within the same LATA as the customer's
premises, when the incumbent LEC is not the collocator; and
(2) Located at a third party's premises within the same LATA as the
customer's premises, when the incumbent LEC is the collocator.
(d) An interconnection trunk meets the requirements of this
paragraph if the requesting telecommunications carrier will transmit the
calling party's number in connection with calls exchanged over the
trunk.
[68 FR 52295, Sept. 2, 2003, as amended at 68 FR 64000, Nov. 12, 2003]
Sec. 51.319 Specific unbundling requirements.
(a) Local loops. An incumbent LEC shall provide a requesting
telecommunications carrier with nondiscriminatory access to the local
loop on an unbundled basis, in accordance with section 251(c)(3) of the
Act and this part and as set forth in paragraphs (a)(1) through (a)(9)
of this section. The local loop network element is defined 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-
[[Page 32]]
user customer premises. This element includes all features, functions,
and capabilities of such transmission facility, including the network
interface device. It also includes all electronics, optronics, and
intermediate devices (including repeaters and load coils) used to
establish the transmission path to the end-user customer premises as
well as any inside wire owned or controlled by the incumbent LEC that is
part of that transmission path.
(1) Copper loops. An incumbent LEC shall provide a requesting
telecommunications carrier with nondiscriminatory access to the copper
loop on an unbundled basis. A copper loop is a stand-alone local loop
comprised entirely of copper wire or cable. Copper loops include two-
wire and four-wire analog voice-grade copper loops, digital copper loops
(e.g., DS0s and integrated services digital network lines), as well as
two-wire and four-wire copper loops conditioned to transmit the digital
signals needed to provide digital subscriber line services, regardless
of whether the copper loops are in service or held as spares. The copper
loop includes attached electronics using time division multiplexing
technology, but does not include packet switching capabilities as
defined in paragraph (a)(2)(i) of this section. The availability of DS1
and DS3 copper loops is subject to the requirements of paragraphs (a)(4)
and (a)(5) of this section.
(i) Line sharing. Beginning on the effective date of the
Commission's Triennial Review Order, the high frequency portion of a
copper loop shall no longer be required to be provided as an unbundled
network element, subject to the transitional line sharing conditions in
paragraphs (a)(1)(i)(A) and (a)(1)(i)(B) of this section. Line sharing
is the process by which a requesting telecommunications carrier provides
digital subscriber line service over the same copper loop that the
incumbent LEC uses to provide voice service, with the incumbent LEC
using the low frequency portion of the loop and the requesting
telecommunications carrier using the high frequency portion of the loop.
The high frequency portion of the loop consists of the frequency range
on the copper loop above the range that carries analog circuit-switched
voice transmissions. This portion of the loop includes the features,
functions, and capabilities of the loop that are used to establish a
complete transmission path on the high frequency range between the
incumbent LEC's distribution frame (or its equivalent) in its central
office and the demarcation point at the end-user customer premises, and
includes the high frequency portion of any inside wire owned or
controlled by the incumbent LEC.
(A) Line sharing customers before the effective date of the
Commission's Triennial Review Order. An incumbent LEC shall provide a
requesting telecommunications carrier with the ability to engage in line
sharing over a copper loop where, prior to the effective date of the
Commission's Triennial Review Order, the requesting telecommunications
carrier began providing digital subscriber line service to a particular
end-user customer and has not ceased providing digital subscriber line
service to that customer. Until such end-user customer cancels or
otherwise discontinues its subscription to the digital subscriber line
service of the requesting telecommunications carrier, or its successor
or assign, an incumbent LEC shall continue to provide access to the high
frequency portion of the loop at the same rate that the incumbent LEC
charged for such access prior to the effective date of the Commission's
Triennial Review Order.
(B) Line sharing customers on or after the effective date of the
Commission's Triennial Review Order. An incumbent LEC shall provide a
requesting telecommunications carrier with the ability to engage in line
sharing over a copper loop, between the effective date of the
Commission's Triennial Review Order and three years after that effective
date, where the requesting telecommunications carrier began providing
digital subscriber line service to a particular end-user customer on or
before the date one year after that effective date. Beginning three
years after the effective date of the Commission's Triennial Review
Order, the incumbent LEC is no longer required to provide a requesting
telecommunications carrier with the ability to engage in line sharing
for this end-user
[[Page 33]]
customer or any new end-user customer. Between the effective date of the
Commission's Triennial Review Order and three years after that effective
date, an incumbent LEC shall provide a requesting telecommunications
carrier with access to the high frequency portion of a copper loop in
order to serve line sharing customers obtained between the effective
date of the Commission's Triennial Review Order and one year after that
effective date in the following manner:
(1) During the first year following the effective date of the
Commission's Triennial Review Order, the incumbent LEC shall provide
access to the high frequency portion of a copper loop at 25 percent of
the state-approved monthly recurring rate, or 25 percent of the monthly
recurring rate set forth in the incumbent LEC's and requesting
telecommunications carrier's interconnection agreement, for access to a
copper loop in effect on that date.
(2) Beginning one year plus one day after the effective date of the
Commission's Triennial Review Order until two years after that effective
date, the incumbent LEC shall provide access to the high frequency
portion of a copper loop at 50 percent of the state-approved monthly
recurring rate, or 50 percent of the monthly recurring rate set forth in
the incumbent LEC's and requesting telecommunications carrier's
interconnection agreement, for access to a copper loop in effect on the
effective date of the Commission's Triennial Review Order.
(3) Beginning two years plus one day after effective date of the
Commission's Triennial Review Order until three years after that
effective date, the incumbent LEC shall provide access to the high
frequency portion of a copper loop at 75 percent of the state-approved
monthly recurring rate, or 75 percent of the monthly recurring rate set
forth in the incumbent LEC's and requesting telecommunications carrier's
interconnection agreement, for access to a copper loop in effect on the
effective date of the Commission's Triennial Review Order.
(ii) Line splitting. An incumbent LEC shall provide a requesting
telecommunications carrier that obtains an unbundled copper loop from
the incumbent LEC with the ability to engage in line splitting
arrangements with another competitive LEC using a splitter collocated at
the central office where the loop terminates into a distribution frame
or its equivalent. Line splitting is the process in which one
competitive LEC provides narrowband voice service over the low frequency
portion of a copper loop and a second competitive LEC provides digital
subscriber line service over the high frequency portion of that same
loop.
(A) An incumbent LEC's obligation, under paragraph (a)(1)(ii) of
this section, to provide a requesting telecommunications carrier with
the ability to engage in line splitting applies regardless of whether
the carrier providing voice service provides its own switching or
obtains local circuit switching as an unbundled network element pursuant
to paragraph (d) of this section.
(B) An incumbent LEC must make all necessary network modifications,
including providing nondiscriminatory access to operations support
systems necessary for pre-ordering, ordering, provisioning, maintenance
and repair, and billing for loops used in line splitting arrangements.
(iii) Line conditioning. The incumbent LEC shall condition a copper
loop at the request of the carrier seeking access to a copper loop under
paragraph (a)(1) of this section, the high frequency portion of a copper
loop under paragraph (a)(1)(i) of this section, or a copper subloop
under paragraph (b) of this section to ensure that the copper loop or
copper subloop is suitable for providing digital subscriber line
services, including those provided over the high frequency portion of
the copper loop or copper subloop, whether or not the incumbent LEC
offers advanced services to the end-user customer on that copper loop or
copper subloop. If the incumbent LEC seeks compensation from the
requesting telecommunications carrier for line conditioning, the
requesting telecommunications carrier has the option of refusing, in
whole or in part, to have the line conditioned; and a requesting
telecommunications carrier's refusal of some or all aspects of line
conditioning will not diminish any right it may
[[Page 34]]
have, under paragraphs (a) and (b) of this section, to access the copper
loop, the high frequency portion of the copper loop, or the copper
subloop.
(A) Line conditioning is defined as the removal from a copper loop
or copper subloop of any device that could diminish the capability of
the loop or subloop to deliver high-speed switched wireline
telecommunications capability, including digital subscriber line
service. Such devices include, but are not limited to, bridge taps, load
coils, low pass filters, and range extenders.
(B) Incumbent LECs shall recover the costs of line conditioning from
the requesting telecommunications carrier in accordance with the
Commission's forward-looking pricing principles promulgated pursuant to
section 252(d)(1) of the Act and in compliance with rules governing
nonrecurring costs in Sec. 51.507(e).
(C) Insofar as it is technically feasible, the incumbent LEC shall
test and report troubles for all the features, functions, and
capabilities of conditioned copper lines, and may not restrict its
testing to voice transmission only.
(D) Where the requesting telecommunications carrier is seeking
access to the high frequency portion of a copper loop or copper subloop
pursuant to paragraphs (a) or (b) of this section and the incumbent LEC
claims that conditioning that loop or subloop will significantly
degrade, as defined in Sec. 51.233, the voiceband services that the
incumbent LEC is currently providing over that loop or subloop, the
incumbent LEC must either:
(1) Locate another copper loop or copper subloop that has been or
can be conditioned, migrate the incumbent LEC's voiceband service to
that loop or subloop, and provide the requesting telecommunications
carrier with access to the high frequency portion of that alternative
loop or subloop; or
(2) Make a showing to the state commission that the original copper
loop or copper subloop cannot be conditioned without significantly
degrading voiceband services on that loop or subloop, as defined in
Sec. 51.233, and that there is no adjacent or alternative copper loop
or copper subloop available that can be conditioned or to which the end-
user customer's voiceband service can be moved to enable line sharing.
(E) If, after evaluating the incumbent LEC's showing under paragraph
(a)(1)(iii)(D)(2) of this section, the state commission concludes that a
copper loop or copper subloop cannot be conditioned without
significantly degrading the voiceband service, the incumbent LEC cannot
then or subsequently condition that loop or subloop to provide advanced
services to its own customers without first making available to any
requesting telecommunications carrier the high frequency portion of the
newly conditioned loop or subloop.
(iv) Maintenance, repair, and testing. (A) An incumbent LEC shall
provide, on a nondiscriminatory basis, physical loop test access points
to a requesting telecommunications carrier at the splitter, through a
cross-connection to the requesting telecommunications carrier's
collocation space, or through a standardized interface, such as an
intermediate distribution frame or a test access server, for the purpose
of testing, maintaining, and repairing copper loops and copper subloops.
(B) An incumbent LEC seeking to utilize an alternative physical
access methodology may request approval to do so from the state
commission, but must show that the proposed alternative method is
reasonable and nondiscriminatory, and will not disadvantage a requesting
telecommunications carrier's ability to perform loop or service testing,
maintenance, or repair.
(v) Control of the loop and splitter functionality. In situations
where a requesting telecommunications carrier is obtaining access to the
high frequency portion of a copper loop either through a line sharing or
line splitting arrangement, the incumbent LEC may maintain control over
the loop and splitter equipment and functions, and shall provide to the
requesting telecommunications carrier loop and splitter functionality
that is compatible with any transmission technology that the requesting
telecommunications carrier seeks to deploy using the high frequency
portion of the loop, as defined in paragraph (a)(1)(i) of this section,
provided that such transmission technology is presumed to be deployable
pursuant to Sec. 51.230.
[[Page 35]]
(2) Hybrid loops. A hybrid loop is a local loop composed of both
fiber optic cable, usually in the feeder plant, and copper wire or
cable, usually in the distribution plant.
(i) Packet switching facilities, features, functions, and
capabilities. An incumbent LEC is not required to provide unbundled
access to the packet switched features, functions and capabilities of
its hybrid loops. Packet switching capability is the routing or
forwarding of packets, frames, cells, or other data units based on
address or other routing information contained in the packets, frames,
cells or other data units, and the functions that are performed by the
digital subscriber line access multiplexers, including but not limited
to the ability to terminate an end-user customer's copper loop (which
includes both a low-band voice channel and a high-band data channel, or
solely a data channel); the ability to forward the voice channels, if
present, to a circuit switch or multiple circuit switches; the ability
to extract data units from the data channels on the loops; and the
ability to combine data units from multiple loops onto one or more
trunks connecting to a packet switch or packet switches.
(ii) Broadband services. When a requesting telecommunications
carrier seeks access to a hybrid loop for the provision of broadband
services, an incumbent LEC shall provide the requesting
telecommunications carrier with nondiscriminatory access to the time
division multiplexing features, functions, and capabilities of that
hybrid loop, including DS1 or DS3 capacity (where impairment has been
found to exist), on an unbundled basis to establish a complete
transmission path between the incumbent LEC's central office and an end
user's customer premises. This access shall include access to all
features, functions, and capabilities of the hybrid loop that are not
used to transmit packetized information.
(iii) Narrowband services. When a requesting telecommunications
carrier seeks access to a hybrid loop for the provision of narrowband
services, the incumbent LEC may either:
(A) Provide nondiscriminatory access, on an unbundled basis, to an
entire hybrid loop capable of voice-grade service (i.e., equivalent to
DS0 capacity), using time division multiplexing technology; or
(B) Provide nondiscriminatory access to a spare home-run copper loop
serving that customer on an unbundled basis.
(3) Fiber loops. (i) Definitions. (A) Fiber-to-the-home loops. A
fiber-to-the-home loop is a local loop consisting entirely of fiber
optic cable, whether dark or lit, serving an end user's customer
premises or, in the case of predominantly residential multiple dwelling
units (MDUs), a fiber optic cable, whether dark or lit, that extends to
the multiunit premises' minimum point of entry (MPOE).
(B) Fiber-to-the-curb loops. A fiber-to-the-curb loop is a local
loop consisting of fiber optic cable connecting to a copper distribution
plant that is not more than 500 feet from the customer's premises or, in
the case of predominantly residential MDUs, not more than 500 feet from
the MDU's MPOE. The fiber optic cable in a fiber-to-the-curb loop must
connect to a copper distribution plant at a serving area interface from
which every other copper distribution subloop also is not more than 500
feet from the respective customer's premises.
(ii) New builds. An incumbent LEC is not required to provide
nondiscriminatory access to a fiber-to-the-home loop or a fiber-to-the-
curb loop on an unbundled basis when the incumbent LEC deploys such a
loop to an end user's customer premises that previously has not been
served by any loop facility.
(iii) Overbuilds. An incumbent LEC is not required to provide
nondiscriminatory access to a fiber-to-the-home loop or a fiber-to-the-
curb loop on an unbundled basis when the incumbent LEC has deployed such
a loop parallel to, or in replacement of, an existing copper loop
facility, except that:
(A) The incumbent LEC must maintain the existing copper loop
connected to the particular customer premises after deploying the fiber-
to-the-home loop or the fiber-to-the-curb loop and provide
nondiscriminatory access to that copper loop on an unbundled basis
unless the incumbent LEC retires the
[[Page 36]]
copper loops pursuant to paragraph (a)(3)(iv) of this section.
(B) An incumbent LEC that maintains the existing copper loops
pursuant to paragraph (a)(3)(iii)(A) of this section need not incur any
expenses to ensure that the existing copper loop remains capable of
transmitting signals prior to receiving a request for access pursuant to
that paragraph, in which case the incumbent LEC shall restore the copper
loop to serviceable condition upon request.
(C) An incumbent LEC that retires the copper loop pursuant to
paragraph (a)(3)(iv) of this section shall provide nondiscriminatory
access to a 64 kilobits per second transmission path capable of voice
grade service over the fiber-to-the-home loop or fiber-to-the-curb loop
on an unbundled basis.
(iv) Retirement of copper loops or copper subloops. Prior to
retiring any copper loop or copper subloop that has been replaced with a
fiber-to-the-home loop or a fiber-to-the-curb loop, an incumbent LEC
must comply with:
(A) The network disclosure requirements set forth in section
251(c)(5) of the Act and in Sec. 51.325 through Sec. 51.335; and
(B) Any applicable state requirements.
(4) DS1 loops. (i) Subject to the cap described in paragraph
(a)(4)(ii) of this section, an incumbent LEC shall provide a requesting
telecommunications carrier with nondiscriminatory access to a DS1 loop
on an unbundled basis to any building not served by a wire center with
at least 60,000 business lines and at least four fiber-based
collocators. Once a wire center exceeds both of these thresholds, no
future DS1 loop unbundling will be required in that wire center. A DS1
loop is a digital local loop having a total digital signal speed of
1.544 megabytes per second. DS1 loops include, but are not limited to,
two-wire and four-wire copper loops capable of providing high-bit rate
digital subscriber line services, including T1 services.
(ii) Cap on unbundled DS1 loop circuits. A requesting
telecommunications carrier may obtain a maximum of ten unbundled DS1
loops to any single building in which DS1 loops are available as
unbundled loops.
(iii) Transition period for DS1 loop circuits. For a 12-month period
beginning on the effective date of the Triennial Review Remand Order,
any DS1 loop UNEs that a competitive LEC leases from the incumbent LEC
as of that date, but which the incumbent LEC is not obligated to
unbundle pursuant to paragraphs (a)(4)(i) or (a)(4)(ii) of this section,
shall be available for lease from the incumbent LEC at a rate equal to
the higher of 115% of the rate the requesting carrier paid for the loop
element on June 15, 2004, or, 115% of the rate the state commission has
established or establishes, if any, between June 16, 2004, and the
effective date of the Triennial Review Remand Order, for that loop
element. Where incumbent LECs are not required to provide unbundled DS1
loops pursuant to paragraphs (a)(4)(i) or (a)(4)(ii) of this section,
requesting carriers may not obtain new DS1 loops as unbundled network
elements.
(5) DS3 loops. (i) Subject to the cap described in paragraph
(a)(5)(ii) of this section, an incumbent LEC shall provide a requesting
telecommunications carrier with nondiscriminatory access to a DS3 loop
on an unbundled basis to any building not served by a wire center with
at least 38,000 business lines and at least four fiber-based
collocators. Once a wire center exceeds both of these thresholds, no
future DS3 loop unbundling will be required in that wire center. A DS3
loop is a digital local loop having a total digital signal speed of
44.736 megabytes per second.
(ii) Cap on unbundled DS3 loop circuits. A requesting
telecommunications carrier may obtain a maximum of a single unbundled
DS3 loop to any single building in which DS3 loops are available as
unbundled loops.
(iii) Transition period for DS3 loop circuits. For a 12-month period
beginning on the effective date of the Triennial Review Remand Order,
any DS3 loop UNEs that a competitive LEC leases from the incumbent LEC
as of that date, but which the incumbent LEC is not obligated to
unbundle pursuant to paragraphs (a)(5)(i) or (a)(5)(ii) of this section,
shall be available for lease from the incumbent LEC at a rate equal to
the higher of 115% of the rate
[[Page 37]]
the requesting carrier paid for the loop element on June 15, 2004, or,
115% of the rate the state commission has established or establishes, if
any, between June 16, 2004, and the effective date of the Triennial
Review Remand Order, for that loop element. Where incumbent LECs are not
required to provide unbundled DS3 loops pursuant to paragraphs (a)(5)(i)
or (a)(5)(ii) of this section, requesting carriers may not obtain new
DS3 loops as unbundled network elements.
(6) Dark fiber loops. (i) An incumbent LEC is not required to
provide requesting telecommunications carriers with access to a dark
fiber loop on an unbundled basis. Dark fiber is fiber within an existing
fiber optic cable that has not yet been activated through optronics to
render it capable of carrying communications services.
(ii) Transition period for dark fiber loop circuits. For an 18-month
period beginning on the effective date of the Triennial Review Remand
Order, any dark fiber loop UNEs that a competitive LEC leases from the
incumbent LEC as of that date shall be available for lease from the
incumbent LEC at a rate equal to the higher of 115% of the rate the
requesting carrier paid for the loop element on June 15, 2004, or, 115%
of the rate the state commission has established or establishes, if any,
between June 16, 2004, and the effective date of the Triennial Review
Remand Order, for that loop element. Requesting carriers may not obtain
new dark fiber loops as unbundled network elements.
(7) Routine network modifications. (i) An incumbent LEC shall make
all routine network modifications to unbundled loop facilities used by
requesting telecommunications carriers where the requested loop facility
has already been constructed. An incumbent LEC shall perform these
routine network modifications to unbundled loop facilities in a
nondiscriminatory fashion, without regard to whether the loop facility
being accessed was constructed on behalf, or in accordance with the
specifications, of any carrier.
(ii) A routine network modification is an activity that the
incumbent LEC regularly undertakes for its own customers. Routine
network modifications include, but are not limited to, rearranging or
splicing of cable; adding an equipment case; adding a doubler or
repeater; adding a smart jack; installing a repeater shelf; adding a
line card; deploying a new multiplexer or reconfiguring an existing
multiplexer; and attaching electronic and other equipment that the
incumbent LEC ordinarily attaches to a DS1 loop to activate such loop
for its own customer. They also include activities needed to enable a
requesting telecommunications carrier to obtain access to a dark fiber
loop. Routine network modifications may entail activities such as
accessing manholes, deploying bucket trucks to reach aerial cable, and
installing equipment casings. Routine network modifications do not
include the construction of a new loop, or the installation of new
aerial or buried cable for a requesting telecommunications carrier.
(8) Engineering policies, practices, and procedures. An incumbent
LEC shall not engineer the transmission capabilities of its network in a
manner, or engage in any policy, practice, or procedure, that disrupts
or degrades access to a local loop or subloop, including the time
division multiplexing-based features, functions, and capabilities of a
hybrid loop, for which a requesting telecommunications carrier may
obtain or has obtained access pursuant to paragraph (a) of this section.
(b) Subloops. An incumbent LEC shall provide a requesting
telecommunications carrier with nondiscriminatory access to subloops on
an unbundled basis in accordance with section 251(c)(3) of the Act and
this part and as set forth in paragraph (b) of this section.
(1) Copper subloops. An incumbent LEC shall provide a requesting
telecommunications carrier with nondiscriminatory access to a copper
subloop on an unbundled basis. A copper subloop is a portion of a copper
loop, or hybrid loop, comprised entirely of copper wire or copper cable
that acts as a transmission facility between any point of technically
feasible access in an incumbent LEC's outside plant, including inside
wire owned or controlled by the incumbent LEC, and the end-user customer
premises. A copper
[[Page 38]]
subloop includes all intermediate devices (including repeaters and load
coils) used to establish a transmission path between a point of
technically feasible access and the demarcation point at the end-user
customer premises, and includes the features, functions, and
capabilities of the copper loop. Copper subloops include two-wire and
four-wire analog voice-grade subloops as well as two-wire and four-wire
subloops conditioned to transmit the digital signals needed to provide
digital subscriber line services, regardless of whether the subloops are
in service or held as spares.
(i) Point of technically feasible access. A point of technically
feasible access is any point in the incumbent LEC's outside plant where
a technician can access the copper wire within a cable without removing
a splice case. Such points include, but are not limited to, a pole or
pedestal, the serving area interface, the network interface device, the
minimum point of entry, any remote terminal, and the feeder/distribution
interface. An incumbent LEC shall, upon a site-specific request, provide
access to a copper subloop at a splice near a remote terminal. The
incumbent LEC shall be compensated for providing this access in
accordance with Sec. Sec. 51.501 through 51.515.
(ii) Rules for collocation. Access to the copper subloop is subject
to the Commission's collocation rules at Sec. Sec. 51.321 and 51.323.
(2) Subloops for access to multiunit premises wiring. An incumbent
LEC shall provide a requesting telecommunications carrier with
nondiscriminatory access to the subloop for access to multiunit premises
wiring on an unbundled basis regardless of the capacity level or type of
loop that the requesting telecommunications carrier seeks to provision
for its customer. The subloop for access to multiunit premises wiring is
defined as any portion of the loop that it is technically feasible to
access at a terminal in the incumbent LEC's outside plant at or near a
multiunit premises. One category of this subloop is inside wire, which
is defined for purposes of this section as all loop plant owned or
controlled by the incumbent LEC at a multiunit customer premises between
the minimum point of entry as defined in Sec. 68.105 of this chapter
and the point of demarcation of the incumbent LEC's network as defined
in Sec. 68.3 of this chapter.
(i) Point of technically feasible access. A point of technically
feasible access is any point in the incumbent LEC's outside plant at or
near a multiunit premises where a technician can access the wire or
fiber within the cable without removing a splice case to reach the wire
or fiber within to access the wiring in the multiunit premises. Such
points include, but are not limited to, a pole or pedestal, the network
interface device, the minimum point of entry, the single point of
interconnection, and the feeder/distribution interface.
(ii) Single point of interconnection. Upon notification by a
requesting telecommunications carrier that it requests interconnection
at a multiunit premises where the incumbent LEC owns, controls, or
leases wiring, the incumbent LEC shall provide a single point of
interconnection that is suitable for use by multiple carriers. This
obligation is in addition to the incumbent LEC's obligations, under
paragraph (b)(2) of this section, to provide nondiscriminatory access to
a subloop for access to multiunit premises wiring, including any inside
wire, at any technically feasible point. If the parties are unable to
negotiate rates, terms, and conditions under which the incumbent LEC
will provide this single point of interconnection, then any issues in
dispute regarding this obligation shall be resolved in state proceedings
under section 252 of the Act.
(3) Other subloop provisions--(i) Technical feasibility. If parties
are unable to reach agreement through voluntary negotiations as to
whether it is technically feasible, or whether sufficient space is
available, to unbundle a copper subloop or subloop for access to
multiunit premises wiring at the point where a telecommunications
carrier requests, the incumbent LEC shall have the burden of
demonstrating to the state commission, in state proceedings under
section 252 of the Act, that there is not sufficient space available, or
that it is not technically feasible to
[[Page 39]]
unbundle the subloop at the point requested.
(ii) Best practices. Once one state commission has determined that
it is technically feasible to unbundle subloops at a designated point,
an incumbent LEC in any state shall have the burden of demonstrating to
the state commission, in state proceedings under section 252 of the Act,
that it is not technically feasible, or that sufficient space is not
available, to unbundle its own loops at such a point.
(c) Network interface device. Apart from its obligation to provide
the network interface device functionality as part of an unbundled loop
or subloop, an incumbent LEC also shall provide nondiscriminatory access
to the network interface device on an unbundled basis, in accordance
with section 251(c)(3) of the Act and this part. The network interface
device element is a stand-alone network element and is defined as any
means of interconnection of customer premises wiring to the incumbent
LEC's distribution plant, such as a cross-connect device used for that
purpose. An incumbent LEC shall permit a requesting telecommunications
carrier to connect its own loop facilities to on-premises wiring through
the incumbent LEC's network interface device, or at any other
technically feasible point.
(d) Local circuit switching. An incumbent LEC shall provide a
requesting telecommunications carrier with nondiscriminatory access to
local circuit switching, including tandem switching, on an unbundled
basis, in accordance with section 251(c)(3) of the Act and this part and
as set forth in paragraph (d) of this section.
(1) Definition. Local circuit switching is defined as follows:
(i) Local circuit switching encompasses all line-side and trunk-side
facilities, plus the features, functions, and capabilities of the
switch. The features, functions, and capabilities of the switch shall
include the basic switching function of connecting lines to lines, lines
to trunks, trunks to lines, and trunks to trunks.
(ii) Local circuit switching includes all vertical features that the
switch is capable of providing, including custom calling, custom local
area signaling services features, and Centrex, as well as any
technically feasible customized routing functions.
(2) DS0 capacity (i.e., mass market) determinations. (i) An
incumbent LEC is not required to provide access to local circuit
switching on an unbundled basis to requesting telecommunications
carriers for the purpose of serving end-user customers using DS0
capacity loops.
(ii) Each requesting telecommunications carrier shall migrate its
embedded base of end-user customers off of the unbundled local circuit
switching element to an alternative arrangement within 12 months of the
effective date of the Triennial Review Remand Order.
(iii) Notwithstanding paragraph (d)(2)(i) of this section, for a 12-
month period from the effective date of the Triennial Review Remand
Order, an incumbent LEC shall provide access to local circuit switching
on an unbundled basis for a requesting carrier to serve its embedded
base of end-user customers. The price for unbundled local circuit
switching in combination with unbundled DS0 capacity loops and shared
transport obtained pursuant to this paragraph shall be the higher of the
rate at which the requesting carrier obtained that combination of
network elements on June 15, 2004 plus one dollar, or, the rate the
state public utility commission establishes, if any, between June 16,
2004, and the effective date of the Triennial Review Remand Order, for
that combination of network elements, plus one dollar. Requesting
carriers may not obtain new local switching as an unbundled network
element.
(3) DS1 capacity and above (i.e., enterprise market) determinations.
An incumbent LEC is not required to provide access to local circuit
switching on an unbundled basis to requesting telecommunications
carriers for the purpose of serving end-user customers using DS1
capacity and above loops except where the state commission petitions
this Commission for waiver of this finding in accordance with the
conditions set forth in paragraph (d)(3)(i) of this section and the
Commission grants such waiver.
[[Page 40]]
(i) State commission inquiry. In its petition, a state commission
wishing to rebut the Commission's finding should petition the Commission
to show that requesting telecommunications carriers are impaired without
access to local circuit switching to serve end users using DS1 capacity
and above loops in a particular geographic market as defined in
accordance with paragraph (d)(2)(i) of this section if it finds that
operational or economic barriers exist in that market.
(A) In making this showing, the state commission shall consider the
following operational characteristics: incumbent LEC performance in
provisioning loops; difficulties associated with obtaining collocation
space due to lack of space or delays in provisioning by the incumbent
LEC; and the difficulties associated with obtaining cross-connects in
the incumbent LEC's wire center.
(B) In making this showing, the state commission shall consider the
following economic characteristics: the cost of entry into a particular
market, including those caused by both operational and economic barriers
to entry; requesting telecommunications carriers' potential revenues
from serving enterprise customers in that market, including all likely
revenues to be gained from entering that market; the prices requesting
telecommunications carriers are likely to be able to charge in that
market, based on a consideration of the prevailing retail rates the
incumbent LEC charges to the different classes of customers in the
different parts of the state.
(ii) Transitional four-line carve-out. Until the state commission
completes the review described in paragraph (b)(2)(iii)(B)(4) of this
section, an incumbent LEC shall comply with the four-line ``carve-out''
for unbundled switching established in Implementation of the Local
Competition Provisions of the Telecommunications Act of 1996, CC Docket
No. 96-98, Third Report and Order and Fourth Further Notice of Proposed
Rulemaking, 15 FCC Rcd 3822-31, paras. 276-98 (1999), reversed and
remanded in part sub. nom. United States Telecom Ass'n v. FCC, 290 F.3d
415 (D.C. Cir. 2002).
(A) DS1 capacity and above end-user transition. Each requesting
telecommunications carrier shall transfer its end-user customers served
using DS1 and above capacity loops and unbundled local circuit switching
to an alternative arrangement within 90 days from the end of the 90-day
state commission consideration period set forth in paragraph (d)(5)(i),
unless a longer period is necessary to comply with a ``change of law''
provision in an applicable interconnection agreement.
(4) Other elements to be unbundled. Elements relating to the local
circuit switching element shall be made available on an unbundled basis
to a requesting carrier to the extent that the requesting carrier is
entitled to unbundled local circuit switching as set forth in paragraph
(d)(2) of this section.
(i) An incumbent LEC shall provide a requesting telecommunications
carrier with nondiscriminatory access to signaling, call-related
databases, and shared transport facilities on an unbundled basis, in
accordance with section 251(c)(3) of the Act and this part, to the
extent that local circuit switching is required to be made available
pursuant to paragraph (d)(2)(iii) of this section. These elements are
defined as follows:
(A) Signaling networks. Signaling networks include, but are not
limited to, signaling links and signaling transfer points.
(B) Call-related databases. Call-related databases are defined as
databases, other than operations support systems, that are used in
signaling networks for billing and collection, or the transmission,
routing, or other provision of a telecommunications service. Where a
requesting telecommunications carrier purchases unbundled local circuit
switching from an incumbent LEC, an incumbent LEC shall allow a
requesting telecommunications carrier to use the incumbent LEC's service
control point element in the same manner, and via the same signaling
links, as the incumbent LEC itself.
(1) Call-related databases include, but are not limited to, the
calling name database, 911 database, E911 database, line information
database, toll
[[Page 41]]
free calling database, advanced intelligent network databases, and
downstream number portability databases by means of physical access at
the signaling transfer point linked to the unbundled databases.
(2) Service management systems are defined as computer databases or
systems not part of the public switched network that interconnect to the
service control point and send to the service control point information
and call processing instructions needed for a network switch to process
and complete a telephone call, and provide a telecommunications carrier
with the capability of entering and storing data regarding the
processing and completing of a telephone call. Where a requesting
telecommunications carrier purchases unbundled local circuit switching
from an incumbent LEC, the incumbent LEC shall allow a requesting
telecommunications carrier to use the incumbent LEC's service management
systems by providing a requesting telecommunications carrier with the
information necessary to enter correctly, or format for entry, the
information relevant for input into the incumbent LEC's service
management system, including access to design, create, test, and deploy
advanced intelligent network-based services at the service management
system, through a service creation environment, that the incumbent LEC
provides to itself.
(3) An incumbent LEC shall not be required to unbundle the services
created in the advanced intelligent network platform and architecture
that qualify for proprietary treatment.
(C) Shared transport. Shared transport is defined as the
transmission facilities shared by more than one carrier, including the
incumbent LEC, between end office switches, between end office switches
and tandem switches, and between tandem switches, in the incumbent LEC
network.
(ii) An incumbent LEC shall provide a requesting telecommunications
carrier nondiscriminatory access to operator services and directory
assistance on an unbundled basis, in accordance with section 251(c)(3)
of the Act and this part, to the extent that local circuit switching is
required to be unbundled by a state commission, if the incumbent LEC
does not provide that requesting telecommunications carrier with
customized routing, or a compatible signaling protocol, necessary to use
either a competing provider's operator services and directory assistance
platform or the requesting telecommunications carrier's own platform.
Operator services are any automatic or live assistance to a customer to
arrange for billing or completion, or both, of a telephone call.
Directory assistance is a service that allows subscribers to retrieve
telephone numbers of other subscribers.
(5) State commission proceedings. A state commission shall complete
the proceedings necessary to satisfy the requirements in paragraphs
(d)(2) and (d)(3) of this section in accordance with paragraphs
(d)(5)(i) and (d)(5)(ii) of this section.
(i) Timing. A state commission shall complete any initial review
applying the triggers and criteria in paragraph (d)(2) of this section
within nine months from the effective date of the Commission's Triennial
Review Order. A state commission wishing to rebut the Commission's
finding of non-impairment for DS1 and above enterprise switches must
file a petition with the Commission in accordance with paragraph (d)(3)
of this section within 90 days from that effective date.
(ii) Continuing review. A state commission shall complete any
subsequent review applying these triggers and criteria within six months
of the filing of a petition or other pleading to conduct such a review.
(e) Dedicated transport. An incumbent LEC shall provide a requesting
telecommunications carrier with nondiscriminatory access to dedicated
transport on an unbundled basis, in accordance with section 251(c)(3) of
the Act and this part, as set forth in paragraphs (e) through (e)(4) of
this section. A ``route'' is a transmission path between one of an
incumbent LEC's wire centers or switches and another of the incumbent
LEC's wire centers or switches. A route between two points (e.g., wire
center or switch ``A'' and wire center or switch ``Z'') may pass through
one or more intermediate wire centers or switches (e.g., wire center or
[[Page 42]]
switch ``X''). Transmission paths between identical end points (e.g.,
wire center or switch ``A'' and wire center or switch ``Z'') are the
same ``route,'' irrespective of whether they pass through the same
intermediate wire centers or switches, if any.
(1) Definition. For purposes of this section, dedicated transport
includes incumbent LEC transmission facilities between wire centers or
switches owned by incumbent LECs, or between wire centers or switches
owned by incumbent LECs and switches owned by requesting
telecommunications carriers, including, but not limited to, DS1-, DS3-,
and OCn-capacity level services, as well as dark fiber, dedicated to a
particular customer or carrier.
(2) Availability. (i) Entrance facilities. An incumbent LEC is not
obligated to provide a requesting carrier with unbundled access to
dedicated transport that does not connect a pair of incumbent LEC wire
centers.
(ii) Dedicated DS1 transport. Dedicated DS1 transport shall be made
available to requesting carriers on an unbundled basis as set forth
below. Dedicated DS1 transport consists of incumbent LEC interoffice
transmission facilities that have a total digital signal speed of 1.544
megabytes per second and are dedicated to a particular customer or
carrier.
(A) General availability of DS1 transport. Incumbent LECs shall
unbundle DS1 transport between any pair of incumbent LEC wire centers
except where, through application of tier classifications described in
paragraph (e)(3) of this section, both wire centers defining the route
are Tier 1 wire centers. As such, an incumbent LEC must unbundle DS1
transport if a wire center at either end of a requested route is not a
Tier 1 wire center, or if neither is a Tier 1 wire center.
(B) Cap on unbundled DS1 transport circuits. A requesting
telecommunications carrier may obtain a maximum of ten unbundled DS1
dedicated transport circuits on each route where DS1 dedicated transport
is available on an unbundled basis.
(C) Transition period for DS1 transport circuits. For a 12-month
period beginning on the effective date of the Triennial Review Remand
Order, any DS1 dedicated transport UNE that a competitive LEC leases
from the incumbent LEC as of that date, but which the incumbent LEC is
not obligated to unbundle pursuant to paragraphs (e)(2)(ii)(A) or
(e)(2)(ii)(B) of this section, shall be available for lease from the
incumbent LEC at a rate equal to the higher of 115 percent of the rate
the requesting carrier paid for the dedicated transport element on June
15, 2004, or, 115 percent of the rate the state commission has
established or establishes, if any, between June 16, 2004, and the
effective date of the Triennial Review Remand Order, for that dedicated
transport element. Where incumbent LECs are not required to provide
unbundled DS1 transport pursuant to paragraphs (e)(2)(ii)(A) or
(e)(2)(ii)(B) of this section, requesting carriers may not obtain new
DS1 transport as unbundled network elements.
(iii) Dedicated DS3 transport. Dedicated DS3 transport shall be made
available to requesting carriers on an unbundled basis as set forth
below. Dedicated DS3 transport consists of incumbent LEC interoffice
transmission facilities that have a total digital signal speed of 44.736
megabytes per second and are dedicated to a particular customer or
carrier.
(A) General availability of DS3 transport. Incumbent LECs shall
unbundle DS3 transport between any pair of incumbent LEC wire centers
except where, through application of tier classifications described in
paragraph (e)(3) of this section, both wire centers defining the route
are either Tier 1 or Tier 2 wire centers. As such, an incumbent LEC must
unbundle DS3 transport if a wire center on either end of a requested
route is a Tier 3 wire center.
(B) Cap on unbundled DS3 transport circuits. A requesting
telecommunications carrier may obtain a maximum of 12 unbundled DS3
dedicated transport circuits on each route where DS3 dedicated transport
is available on an unbundled basis.
(C) Transition period for DS3 transport circuits. For a 12-month
period beginning on the effective date of the Triennial Review Remand
Order, any DS3
[[Page 43]]
dedicated transport UNE that a competitive LEC leases from the incumbent
LEC as of that date, but which the incumbent LEC is not obligated to
unbundle pursuant to paragraphs (e)(2)(iii)(A) or (e)(2)(iii)(B) of this
section, shall be available for lease from the incumbent LEC at a rate
equal to the higher of 115 percent of the rate the requesting carrier
paid for the dedicated transport element on June 15, 2004, or, 115
percent of the rate the state commission has established or establishes,
if any, between June 16, 2004, and the effective date of the Triennial
Review Remand Order, for that dedicated transport element. Where
incumbent LECs are not required to provide unbundled DS3 transport
pursuant to paragraphs (e)(2)(iii)(A) or (e)(2)(iii)(B) of this section,
requesting carriers may not obtain new DS3 transport as unbundled
network elements.
(iv) Dark fiber transport. Dedicated dark fiber transport shall be
made available to requesting carriers on an unbundled basis as set forth
below. Dark fiber transport consists of unactivated optical interoffice
transmission facilities.
(A) General availability of dark fiber transport. Incumbent LECs
shall unbundle dark fiber transport between any pair of incumbent LEC
wire centers except where, though application of tier classifications
described in paragraph (e)(3) of this section, both wire centers
defining the route are either Tier 1 or Tier 2 wire centers. As such, an
incumbent LEC must unbundle dark fiber transport if a wire center on
either end of a requested route is a Tier 3 wire center.
(B) Transition period for dark fiber transport circuits. For an 18-
month period beginning on the effective date of the Triennial Review
Remand Order, any dark fiber dedicated transport UNE that a competitive
LEC leases from the incumbent LEC as of that date, but which the
incumbent LEC is not obligated to unbundle pursuant to paragraphs
(e)(2)(iv)(A) or (e)(2)(iv)(B) of this section, shall be available for
lease from the incumbent LEC at a rate equal to the higher of 115
percent of the rate the requesting carrier paid for the dedicated
transport element on June 15, 2004, or, 115 percent of the rate the
state commission has established or establishes, if any, between June
16, 2004, and the effective date of the Triennial Review Remand Order,
for that dedicated transport element. Where incumbent LECs are not
required to provide unbundled dark fiber transport pursuant to
paragraphs (e)(2)(iv)(A) or (e)(2)(iv)(B) of this section, requesting
carriers may not obtain new dark fiber transport as unbundled network
elements.
(3) Wire center tier structure. For purposes of this section,
incumbent LEC wire centers shall be classified into three tiers, defined
as follows:
(i) Tier 1 wire centers are those incumbent LEC wire centers that
contain at least four fiber-based collocators, at least 38,000 business
lines, or both. Tier 1 wire centers also are those incumbent LEC tandem
switching locations that have no line-side switching facilities, but
nevertheless serve as a point of traffic aggregation accessible by
competitive LECs. Once a wire center is determined to be a Tier 1 wire
center, that wire center is not subject to later reclassification as a
Tier 2 or Tier 3 wire center.
(ii) Tier 2 wire centers are those incumbent LEC wire centers that
are not Tier 1 wire centers, but contain at least 3 fiber-based
collocators, at least 24,000 business lines, or both. Once a wire center
is determined to be a Tier 2 wire center, that wire center is not
subject to later reclassification as a Tier 3 wire center.
(iii) Tier 3 wire centers are those incumbent LEC wire centers that
do not meet the criteria for Tier 1 or Tier 2 wire centers.
(4) Routine network modifications. (i) An incumbent LEC shall make
all routine network modifications to unbundled dedicated transport
facilities used by requesting telecommunications carriers where the
requested dedicated transport facilities have already been constructed.
An incumbent LEC shall perform all routine network modifications to
unbundled dedicated transport facilities in a nondiscriminatory fashion,
without regard to whether the facility being accessed was constructed on
behalf, or in accordance with the specifications, of any carrier.
[[Page 44]]
(ii) A routine network modification is an activity that the
incumbent LEC regularly undertakes for its own customers. Routine
network modifications include, but are not limited to, rearranging or
splicing of cable; adding an equipment case; adding a doubler or
repeater; installing a repeater shelf; and deploying a new multiplexer
or reconfiguring an existing multiplexer. They also include activities
needed to enable a requesting telecommunications carrier to light a dark
fiber transport facility. Routine network modifications may entail
activities such as accessing manholes, deploying bucket trucks to reach
aerial cable, and installing equipment casings. Routine network
modifications do not include the installation of new aerial or buried
cable for a requesting telecommunications carrier.
(f) 911 and E911 databases. An incumbent LEC shall provide a
requesting telecommunications carrier with nondiscriminatory access to
911 and E911 databases on an unbundled basis, in accordance with section
251(c)(3) of the Act and this part.
(g) Operations support systems. An incumbent LEC shall provide a
requesting telecommunications carrier with nondiscriminatory access to
operations support systems on an unbundled basis, in accordance with
section 251(c)(3) of the Act and this part. Operations support system
functions consist of pre-ordering, ordering, provisioning, maintenance
and repair, and billing functions supported by an incumbent LEC's
databases and information. An incumbent LEC, as part of its duty to
provide access to the pre-ordering function, shall provide the
requesting telecommunications carrier with nondiscriminatory access to
the same detailed information about the loop that is available to the
incumbent LEC.
[68 FR 52295, Sept. 4, 2003, as amended at 68 FR 64000, Nov. 12, 2003;
69 FR 54591, Sept. 9, 2004; 69 FR 77953, Dec. 29, 2004; 70 FR 8953, Feb.
24, 2005]
Sec. 51.320 Assumption of responsibility by the Commission.
If a state commission fails to exercise its authority under Sec.
51.319, any party seeking that the Commission step into the role of the
state commission shall file with the Commission and serve on the state
commission a petition that explains with specificity the bases for the
petition and information that supports the claim that the state
commission has failed to act. Subsequent to the Commission's issuing a
public notice and soliciting comments on the petition from interested
parties, the Commission will rule on the petition within 90 days of the
date of the public notice. If it agrees that the state commission has
failed to act, the Commission will assume responsibility for the
proceeding, and within nine months from the date it assumed
responsibility for the proceeding, make any findings in accordance with
the Commission's rules.
[68 FR 52305, Sept. 2, 2003]
Sec. 51.321 Methods of obtaining interconnection and access to
unbundled elements under section 251 of the Act.
(a) Except as provided in paragraph (e) of this section, an
incumbent LEC shall provide, on terms and conditions that are just,
reasonable, and nondiscriminatory in accordance with the requirements of
this part, any technically feasible method of obtaining interconnection
or access to unbundled network elements at a particular point upon a
request by a telecommunications carrier.
(b) Technically feasible methods of obtaining interconnection or
access to unbundled network elements include, but are not limited to:
(1) Physical collocation and virtual collocation at the premises of
an incumbent LEC; and
(2) Meet point interconnection arrangements.
(c) A previously successful method of obtaining interconnection or
access to unbundled network elements at a particular premises or point
on any incumbent LEC's network is substantial evidence that such method
is technically feasible in the case of substantially similar network
premises or points. A requesting telecommunications carrier seeking a
particular collocation arrangement, either physical or virtual, is
entitled to a presumption that such arrangement is
[[Page 45]]
technically feasible if any LEC has deployed such collocation
arrangement in any incumbent LEC premises.
(d) An incumbent LEC that denies a request for a particular method
of obtaining interconnection or access to unbundled network elements on
the incumbent LEC's network must prove to the state commission that the
requested method of obtaining interconnection or access to unbundled
network elements at that point is not technically feasible.
(e) An incumbent LEC shall not be required to provide for physical
collocation of equipment necessary for interconnection or access to
unbundled network elements at the incumbent LEC's premises if it
demonstrates to the state commission that physical collocation is not
practical for technical reasons or because of space limitations. In such
cases, the incumbent LEC shall be required to provide virtual
collocation, except at points where the incumbent LEC proves to the
state commission that virtual collocation is not technically feasible.
If virtual collocation is not technically feasible, the incumbent LEC
shall provide other methods of interconnection and access to unbundled
network elements to the extent technically feasible.
(f) An incumbent LEC shall submit to the state commission, subject
to any protective order as the state commission may deem necessary,
detailed floor plans or diagrams of any premises where the incumbent LEC
claims that physical collocation is not practical because of space
limitations. These floor plans or diagrams must show what space, if any,
the incumbent LEC or any of its affiliates has reserved for future use,
and must describe in detail the specific future uses for which the space
has been reserved and the length of time for each reservation. An
incumbent LEC that contends space for physical collocation is not
available in an incumbent LEC premises must also allow the requesting
carrier to tour the entire premises in question, not only the area in
which space was denied, without charge, within ten days of the receipt
of the incumbent's denial of space. An incumbent LEC must allow a
requesting telecommunications carrier reasonable access to its selected
collocation space during construction.
(g) An incumbent LEC that is classified as a Class A company under
Sec. 32.11 of this chapter and that is not a National Exchange Carrier
Association interstate tariff participant as provided in part 69,
subpart G, shall continue to provide expanded interconnection service
pursuant to interstate tariff in accordance with Sec. Sec. 64.1401,
64.1402, 69.121 of this chapter, and the Commission's other
requirements.
(h) Upon request, an incumbent LEC must submit to the requesting
carrier within ten days of the submission of the request a report
describing in detail the space that is available for collocation in a
particular incumbent LEC premises. This report must specify the amount
of collocation space available at each requested premises, the number of
collocators, and any modifications in the use of the space since the
last report. This report must also include measures that the incumbent
LEC is taking to make additional space available for collocation. The
incumbent LEC must maintain a publicly available document, posted for
viewing on the incumbent LEC's publicly available Internet site,
indicating all premises that are full, and must update such a document
within ten days of the date at which a premises runs out of physical
collocation space.
(i) An incumbent LEC must, upon request, remove obsolete unused
equipment from their premises to increase the amount of space available
for collocation.
[61 FR 45619, Aug. 28, 1996, as amended at 64 FR 23241, Apr. 30, 1999;
65 FR 54438, Sept. 8, 2000; 66 FR 43521, Aug. 20, 2001]
Sec. 51.323 Standards for physical collocation and virtual collocation.
(a) An incumbent LEC shall provide physical collocation and virtual
collocation to requesting telecommunications carriers.
(b) An incumbent LEC shall permit the collocation and use of any
equipment necessary for interconnection or access to unbundled network
elements.
(1) Equipment is necessary for interconnection if an inability to
deploy that equipment would, as a practical,
[[Page 46]]
economic, or operational matter, preclude the requesting carrier from
obtaining interconnection with the incumbent LEC at a level equal in
quality to that which the incumbent obtains within its own network or
the incumbent provides to any affiliate, subsidiary, or other party.
(2) Equipment is necessary for access to an unbundled network
element if an inability to deploy that equipment would, as a practical,
economic, or operational matter, preclude the requesting carrier from
obtaining nondiscriminatory access to that unbundled network element,
including any of its features, functions, or capabilities.
(3) Multi-functional equipment shall be deemed necessary for
interconnection or access to an unbundled network element if and only if
the primary purpose and function of the equipment, as the requesting
carrier seeks to deploy it, meets either or both of the standards set
forth in paragraphs (b)(1) and (b)(2) of this section. For a piece of
equipment to be utilized primarily to obtain equal in quality
interconnection or nondiscriminatory access to one or more unbundled
network elements, there also must be a logical nexus between the
additional functions the equipment would perform and the
telecommunication services the requesting carrier seeks to provide to
its customers by means of the interconnection or unbundled network
element. The collocation of those functions of the equipment that, as
stand-alone functions, do not meet either of the standards set forth in
paragraphs (b)(1) and (b)(2) of this section must not cause the
equipment to significantly increase the burden on the incumbent's
property.
(c) Whenever an incumbent LEC objects to collocation of equipment by
a requesting telecommunications carrier for purposes within the scope of
section 251(c)(6) of the Act, the incumbent LEC shall prove to the state
commission that the equipment is not necessary for interconnection or
access to unbundled network elements under the standards set forth in
paragraph (b) of this section. An incumbent LEC may not object to the
collocation of equipment on the grounds that the equipment does not
comply with safety or engineering standards that are more stringent than
the safety or engineering standards that the incumbent LEC applies to
its own equipment. An incumbent LEC may not object to the collocation of
equipment on the ground that the equipment fails to comply with Network
Equipment and Building Specifications performance standards or any other
performance standards. An incumbent LEC that denies collocation of a
competitor's equipment, citing safety standards, must provide to the
competitive LEC within five business days of the denial a list of all
equipment that the incumbent LEC locates at the premises in question,
together with an affidavit attesting that all of that equipment meets or
exceeds the safety standard that the incumbent LEC contends the
competitor's equipment fails to meet. This affidavit must set forth in
detail: the exact safety requirement that the requesting carrier's
equipment does not satisfy; the incumbent LEC's basis for concluding
that the requesting carrier's equipment does not meet this safety
requirement; and the incumbent LEC's basis for concluding why
collocation of equipment not meeting this safety requirement would
compromise network safety.
(d) When an incumbent LEC provides physical collocation, virtual
collocation, or both, the incumbent LEC shall:
(1) Provide an interconnection point or points, physically
accessible by both the incumbent LEC and the collocating
telecommunications carrier, at which the fiber optic cable carrying an
interconnector's circuits can enter the incumbent LEC's premises,
provided that the incumbent LEC shall designate interconnection points
as close as reasonably possible to its premises;
(2) Provide at least two such interconnection points at each
incumbent LEC premises at which there are at least two entry points for
the incumbent LEC's cable facilities, and at which space is available
for new facilities in at least two of those entry points;
(3) Permit interconnection of copper or coaxial cable if such
interconnection is first approved by the state commission; and
[[Page 47]]
(4) Permit physical collocation of microwave transmission facilities
except where such collocation is not practical for technical reasons or
because of space limitations, in which case virtual collocation of such
facilities is required where technically feasible.
(e) When providing virtual collocation, an incumbent LEC shall, at a
minimum, install, maintain, and repair collocated equipment meeting the
standards set forth in paragraph (b) of this section within the same
time periods and with failure rates that are no greater than those that
apply to the performance of similar functions for comparable equipment
of the incumbent LEC itself.
(f) An incumbent LEC shall provide space for the collocation of
equipment meeting the standards set forth in paragraph (b) of this
section in accordance with the following requirements:
(1) An incumbent LEC shall make space available within or on its
premises to requesting telecommunications carriers on a first-come,
first-served basis, provided, however, that the incumbent LEC shall not
be required to lease or construct additional space to provide for
physical collocation when existing space has been exhausted;
(2) To the extent possible, an incumbent LEC shall make contiguous
space available to requesting telecommunications carriers that seek to
expand their existing collocation space;
(3) When planning renovations of existing facilities or constructing
or leasing new facilities, an incumbent LEC shall take into account
projected demand for collocation of equipment;
(4) An incumbent LEC may retain a limited amount of floor space for
its own specific future uses, provided, however, that neither the
incumbent LEC nor any of its affiliates may reserve space for future use
on terms more favorable than those that apply to other
telecommunications carriers seeking to reserve collocation space for
their own future use;
(5) An incumbent LEC shall relinquish any space held for future use
before denying a request for virtual collocation on the grounds of space
limitations, unless the incumbent LEC proves to the state commission
that virtual collocation at that point is not technically feasible; and
(6) An incumbent LEC may impose reasonable restrictions on the
warehousing of unused space by collocating telecommunications carriers,
provided, however, that the incumbent LEC shall not set maximum space
limitations applicable to such carriers unless the incumbent LEC proves
to the state commission that space constraints make such restrictions
necessary.
(7) An incumbent LEC must assign collocation space to requesting
carriers in a just, reasonable, and nondiscriminatory manner. An
incumbent LEC must allow each carrier requesting physical collocation to
submit space preferences prior to assigning physical collocation space
to that carrier. At a minimum, an incumbent LEC's space assignment
policies and practices must meet the following principles:
(A) An incumbent LEC's space assignment policies and practices must
not materially increase a requesting carrier's collocation costs.
(B) An incumbent LEC's space assignment policies and practices must
not materially delay a requesting carrier occupation and use of the
incumbent LEC's premises.
(C) An incumbent LEC must not assign physical collocation space that
will impair the quality of service or impose other limitations on the
service a requesting carrier wishes to offer.
(D) An incumbent LEC's space assignment policies and practices must
not reduce unreasonably the total space available for physical
collocation or preclude unreasonably physical collocation within the
incumbent's premises.
(g) An incumbent LEC shall permit collocating telecommunications
carriers to collocate equipment and connect such equipment to unbundled
network transmission elements obtained from the incumbent LEC, and shall
not require such telecommunications carriers to bring their own
transmission facilities to the incumbent LEC's premises in which they
seek to collocate equipment.
(h) As described in paragraphs (1) and (2) of this section, an
incumbent LEC
[[Page 48]]
shall permit a collocating telecommunications carrier to interconnect
its network with that of another collocating telecommunications carrier
at the incumbent LEC's premises and to connect its collocated equipment
to the collocated equipment of another telecommunications carrier within
the same premises, provided that the collocated equipment is also used
for interconnection with the incumbent LEC or for access to the
incumbent LEC's unbundled network elements.
(1) An incumbent LEC shall provide, at the request of a collocating
telecommunications carrier, a connection between the equipment in the
collocated spaces of two or more telecommunications carriers, except to
the extent the incumbent LEC permits the collocating parties to provide
the requested connection for themselves or a connection is not required
under paragraph (h)(2) of this section. Where technically feasible, the
incumbent LEC shall provide the connection using copper, dark fiber, lit
fiber, or other transmission medium, as requested by the collocating
telecommunications carrier.
(2) An incumbent LEC is not required to provide a connection between
the equipment in the collocated spaces of two or more telecommunications
carriers if the connection is requested pursuant to section 201 of the
Act, unless the requesting carrier submits to the incumbent LEC a
certification that more than 10 percent of the amount of traffic to be
transmitted through the connection will be interstate. The incumbent LEC
cannot refuse to accept the certification, but instead must provision
the service promptly. Any incumbent LEC may file a section 208 complaint
with the Commission challenging the certification if it believes that
the certification is deficient. No such certification is required for a
request for such connection under section 251 of the Act.
(i) As provided herein, an incumbent LEC may require reasonable
security arrangements to protect its equipment and ensure network
reliability. An incumbent LEC may only impose security arrangements that
are as stringent as the security arrangements that the incumbent LEC
maintains at its own premises for its own employees or authorized
contractors. An incumbent LEC must allow collocating parties to access
their collocated equipment 24 hours a day, seven days a week, without
requiring either a security escort of any kind or delaying a
competitor's employees' entry into the incumbent LEC's premises. An
incumbent LEC may require a collocating carrier to pay only for the
least expensive, effective security option that is viable for the
physical collocation space assigned. Reasonable security measures that
the incumbent LEC may adopt include:
(1) Installing security cameras or other monitoring systems; or
(2) Requiring competitive LEC personnel to use badges with
computerized tracking systems; or
(3) Requiring competitive LEC employees to undergo the same level of
security training, or its equivalent, that the incumbent's own
employees, or third party contractors providing similar functions, must
undergo; provided, however, that the incumbent LEC may not require
competitive LEC employees to receive such training from the incumbent
LEC itself, but must provide information to the competitive LEC on the
specific type of training required so the competitive LEC's employees
can conduct their own training.
(4) Restricting physical collocation to space separated from space
housing the incumbent LEC's equipment, provided that each of the
following conditions is met:
(i) Either legitimate security concerns, or operational constraints
unrelated to the incumbent's or any of its affiliates' or subsidiaries
competitive concerns, warrant such separation;
(ii) Any physical collocation space assigned to an affiliate or
subsidiary of the incumbent LEC is separated from space housing the
incumbent LEC's equipment;
(iii) The separated space will be available in the same time frame
as, or a shorter time frame than, non-separated space;
(iv) The cost of the separated space to the requesting carrier will
not be
[[Page 49]]
materially higher than the cost of non-separated space; and
(v) The separated space is comparable, from a technical and
engineering standpoint, to non-separated space.
(5) Requiring the employees and contractors of collocating carriers
to use a central or separate entrance to the incumbent's building,
provided, however, that where an incumbent LEC requires that the
employees or contractors of collocating carriers access collocated
equipment only through a separate entrance, employees and contractors of
the incumbent LEC's affiliates and subsidiaries must be subject to the
same restriction.
(6) Constructing or requiring the construction of a separate
entrance to access physical collocation space, provided that each of the
following conditions is met:
(i) Construction of a separate entrance is technically feasible;
(ii) Either legitimate security concerns, or operational constraints
unrelated to the incumbent's or any of its affiliates' or subsidiaries
competitive concerns, warrant such separation;
(iii) Construction of a separate entrance will not artificially
delay collocation provisioning; and
(iv) Construction of a separate entrance will not materially
increase the requesting carrier's costs.
(j) An incumbent LEC shall permit a collocating telecommunications
carrier to subcontract the construction of physical collocation
arrangements with contractors approved by the incumbent LEC, provided,
however, that the incumbent LEC shall not unreasonably withhold approval
of contractors. Approval by an incumbent LEC shall be based on the same
criteria it uses in approving contractors for its own purposes.
(k) An incumbent LEC's physical collocation offering must include
the following:
(1) Shared collocation cages. A shared collocation cage is a caged
collocation space shared by two or more competitive LECs pursuant to
terms and conditions agreed to by the competitive LECs. In making shared
cage arrangements available, an incumbent LEC may not increase the cost
of site preparation or nonrecurring charges above the cost for
provisioning such a cage of similar dimensions and material to a single
collocating party. In addition, the incumbent must prorate the charge
for site conditioning and preparation undertaken by the incumbent to
construct the shared collocation cage or condition the space for
collocation use, regardless of how many carriers actually collocate in
that cage, by determining the total charge for site preparation and
allocating that charge to a collocating carrier based on the percentage
of the total space utilized by that carrier. An incumbent LEC must make
shared collocation space available in single-bay increments or their
equivalent, i.e., a competing carrier can purchase space in increments
small enough to collocate a single rack, or bay, of equipment.
(2) Cageless collocation. Incumbent LECs must allow competitors to
collocate without requiring the construction of a cage or similar
structure. Incumbent LECs must permit collocating carriers to have
direct access to their equipment. An incumbent LEC may not require
competitors to use an intermediate interconnection arrangement in lieu
of direct connection to the incumbent's network if technically feasible.
An incumbent LEC must make cageless collocation space available in
single-bay increments, meaning that a competing carrier can purchase
space in increments small enough to collocate a single rack, or bay, of
equipment.
(3) Adjacent space collocation. An incumbent LEC must make
available, where physical collocation space is legitimately exhausted in
a particular incumbent LEC structure, collocation in adjacent controlled
environmental vaults, controlled environmental huts, or similar
structures located at the incumbent LEC premises to the extent
technically feasible. The incumbent LEC must permit a requesting
telecommunications carrier to construct or otherwise procure such an
adjacent structure, subject only to reasonable safety and maintenance
requirements. The incumbent must provide power and physical collocation
services and facilities, subject to the same nondiscrimination
requirements as applicable to any other physical collocation
[[Page 50]]
arrangement. The incumbent LEC must permit the requesting carrier to
place its own equipment, including, but not limited to, copper cables,
coaxial cables, fiber cables, and telecommunications equipment, in
adjacent facilities constructed by the incumbent LEC, the requesting
carrier, or a third-party. If physical collocation space becomes
available in a previously exhausted incumbent LEC structure, the
incumbent LEC must not require a carrier to move, or prohibit a
competitive LEC from moving, a collocation arrangement into that
structure. Instead, the incumbent LEC must continue to allow the carrier
to collocate in any adjacent controlled environmental vault, controlled
environmental vault, or similar structure that the carrier has
constructed or otherwise procured.
(l) An incumbent LEC must offer to provide and provide all forms of
physical collocation (i.e., caged, cageless, shared, and adjacent)
within the following deadlines, except to the extent a state sets its
own deadlines or the incumbent LEC has demonstrated to the state
commission that physical collocation is not practical for technical
reasons or because of space limitations.
(1) Within ten days after receiving an application for physical
collocation, an incumbent LEC must inform the requesting carrier whether
the application meets each of the incumbent LEC's established
collocation standards. A requesting carrier that resubmits a revised
application curing any deficiencies in an application for physical
collocation within ten days after being informed of them retains its
position within any collocation queue that the incumbent LEC maintains
pursuant to paragraph (f)(1) of this section.
(2) Except as stated in paragraphs (l)(3) and (l)(4) of this
section, an incumbent LEC must complete provisioning of a requested
physical collocation arrangement within 90 days after receiving an
application that meets the incumbent LEC's established collocation
application standards.
(3) An incumbent LEC need not meet the deadline set forth in
paragraph (l)(2) of this section if, after receipt of any price
quotation provided by the incumbent LEC, the telecommunications carrier
requesting collocation does not notify the incumbent LEC that physical
collocation should proceed.
(4) If, within seven days of the requesting carrier's receipt of any
price quotation provided by the incumbent LEC, the telecommunications
carrier requesting collocation does not notify the incumbent LEC that
physical collocation should proceed, then the incumbent LEC need not
complete provisioning of a requested physical collocation arrangement
until 90 days after receiving such notification from the requesting
telecommunications carrier.
[61 FR 45619, Aug. 28, 1996, as amended at 64 FR 23242, Apr. 30, 1999;
65 FR 54439, Sept. 8, 2000; 66 FR 43521, Aug. 20, 2001]
Sec. 51.325 Notice of network changes: Public notice requirement.
(a) An incumbent local exchange carrier (``LEC'') must provide
public notice regarding any network change that:
(1) Will affect a competing service provider's performance or
ability to provide service;
(2) Will affect the incumbent LEC's interoperability with other
service providers; or
(3) Will affect the manner in which customer premises equipment is
attached to the interstate network.
(4) Will result in the retirement of copper loops or copper
subloops, and the replacement of such loops with fiber-to-the-home loops
or fiber-to-the-curb loops, as those terms are defined in Sec.
51.319(a)(3).
(b) For purposes of this section, interoperability means the ability
of two or more facilities, or networks, to be connected, to exchange
information, and to use the information that has been exchanged.
(c) Until public notice has been given in accordance with Sec. Sec.
51.325 through 51.335, an incumbent LEC may not disclose to separate
affiliates, separated affiliates, or unaffiliated entities (including
actual or potential competing service providers or competitors),
information about planned network changes that are subject to this
section.
(d) For the purposes of Sec. Sec. 51.325 through 51.335, the term
services means
[[Page 51]]
telecommunications services or information services.
[61 FR 47351, Sept. 6, 1996, as amended at 64 FR 14148, Mar. 24, 1999;
68 FR 52305, Sept. 2, 2003; 69 FR 77954, Dec. 29, 2004]
Sec. 51.327 Notice of network changes: Content of notice.
(a) Public notice of planned network changes must, at a minimum,
include:
(1) The carrier's name and address;
(2) The name and telephone number of a contact person who can supply
additional information regarding the planned changes;
(3) The implementation date of the planned changes;
(4) The location(s) at which the changes will occur;
(5) A description of the type of changes planned (Information
provided to satisfy this requirement must include, as applicable, but is
not limited to, references to technical specifications, protocols, and
standards regarding transmission, signaling, routing, and facility
assignment as well as references to technical standards that would be
applicable to any new technologies or equipment, or that may otherwise
affect interconnection); and
(6) A description of the reasonably foreseeable impact of the
planned changes.
(b) The incumbent LEC also shall follow, as necessary, procedures
relating to confidential or proprietary information contained in Sec.
51.335.
[61 FR 47351, Sept. 6, 1996]
Sec. 51.329 Notice of network changes: Methods for providing notice.
(a) In providing the required notice to the public of network
changes, an incumbent LEC may use one of the following methods:
(1) Filing a public notice with the Commission; or
(2) Providing public notice through industry fora, industry
publications, or the carrier's publicly accessible Internet site. If an
incumbent LEC uses any of the methods specified in paragraph (a)(2) of
this section, it also must file a certification with the Commission that
includes:
(i) A statement that identifies the proposed changes;
(ii) A statement that public notice has been given in compliance
with Sec. Sec. 51.325 through 51.335; and
(iii) A statement identifying the location of the change information
and describing how this information can be obtained.
(b) Until the planned change is implemented, an incumbent LEC must
keep the notice available for public inspection, and amend the notice to
keep the information complete, accurate and up-to-date.
(c) Specific filing requirements. Commission filings under this
section must be made as follows:
(1) The public notice or certification must be labeled with one of
the following titles, as appropriate: ``Public Notice of Network Change
Under Rule 51.329(a),'' ``Certification of Public Notice of Network
Change Under Rule 51.329(a),'' ``Short Term Public Notice Under Rule
51.333(a),'' or ``Certification of Short Term Public Notice Under Rule
51.333(a).''
(2) Two paper copies of the incumbent LEC's public notice or
certification, required under paragraph (a) of this section, must be
sent to ``Secretary, Federal Communications Commission, Washington, DC
20554.'' The date on which this filing is received by the Secretary is
considered the official filing date.
[61 FR 47351, Sept. 6, 1996, as amended at 67 FR 13225, Mar. 21, 2002;
71 FR 65750, Nov. 9, 2006]
Sec. 51.331 Notice of network changes: Timing of notice.
(a) An incumbent LEC shall give public notice of planned changes at
the make/buy point, as defined in paragraph (b) of this section, but at
least 12 months before implementation, except as provided below:
(1) If the changes can be implemented within twelve months of the
make/buy point, public notice must be given at the make/buy point, but
at least six months before implementation.
(2) If the changes can be implemented within six months of the make/
buy 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
[[Page 52]]
incumbent LEC decides to make for itself, or to procure from another
entity, any product the design of which affects or relies on a new or
changed network interface. If an incumbent LEC's planned changes do not
require it to make or to procure a product, then the make/buy point is
the point at which the incumbent LEC makes a definite decision to
implement a network change.
(1) For purposes of this section, a product is any hardware r
software for use in an incumbent LEC's network or in conjunction with
its facilities that, when installed, could affect the compatibility of
an interconnected service provider's network, facilities or services
with an incumbent LEC's existing telephone network, facilities or
services, or with any of an incumbent carrier's services or
capabilities.
(2) For purposes of this section a definite decision is reached when
an incumbent LEC determines that the change is warranted, establishes a
timetable for anticipated implementation, and takes any action toward
implementation of the change within its network.
(c) Competing service providers may object to incumbent LEC notice
of retirement of copper loops or copper subloops and replacement with
fiber-to-the-home loops or fiber-to-the-curb loops in the manner set
forth in Sec. 51.333(c).
[61 FR 47352, Sept. 6, 1996, as amended at 68 FR 52305, Sept. 2, 2003;
69 FR 77954, Dec. 29, 2004]
Sec. 51.333 Notice of network changes: Short term notice, objections
thereto and objections to retirement of copper loops or copper subloops.
(a) Certificate of service. If an incumbent LEC wishes to provide
less than six months notice of planned network changes, the public
notice or certification that it files with the Commission must include a
certificate of service in addition to the information required by Sec.
51.327(a) or Sec. 51.329(a)(2), as applicable. The certificate of
service shall include:
(1) A statement that, at least five business days in advance of its
filing with the Commission, the incumbent LEC served a copy of its
public notice upon each telephone exchange service provider that
directly interconnects with the incumbent LEC's network; and
(2) The name and address of each such telephone exchange service
provider upon which the notice was served.
(b) Implementation date. The Commission will release a public notice
of filings of such short term notices or notices of replacement of
copper loops or copper subloops with fiber-to-the-home loops or fiber-
to-the-curb loops. The effective date of the network changes referenced
in those filings shall be subject to the following requirements:
(1) Short term notice. Short term notices shall be deemed final on
the tenth business day after the release of the Commission's public
notice, unless an objection is filed pursuant to paragraph (c) of this
section.
(2) Replacement of copper loops or copper subloops with fiber-to-
the-home loops or fiber-to-the-curb loops. Notices of replacement of
copper loops or copper subloops with fiber-to-the-home loops or fiber-
to-the-curb loops shall be deemed approved on the 90th day after the
release of the Commission's public notice of the filing, unless an
objection is filed pursuant to paragraph (c) of this section. Incumbent
LEC notice of intent to retire any copper loops or copper subloops and
replace such loops or subloops with fiber-to-the-home loops or fiber-to-
the-curb loops shall be subject to the short term notice provisions of
this section, but under no circumstances may an incumbent LEC provide
less than 90 days notice of such a change.
(c) Objection procedures for short term notice and notices of
replacement of copper loops or copper subloops with fiber-to-the-home
loops or fiber-to-the-curb loops. An objection to an incumbent LEC's
short term notice or to its notice that it intends to retire copper
loops or copper subloops and replace such loops or subloops with fiber-
to-the-home loops or fiber-to-the-curb loops may be filed by an
information service provider or telecommunications service provider 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
[[Page 53]]
day following the release of the Commission's public notice. All
objections filed under this section must:
(1) State specific reasons why the objector cannot accommodate the
incumbent LEC's changes by the date stated in the incumbent LEC's public
notice and must indicate any specific technical information or other
assistance required that would enable the objector to accommodate those
changes;
(2) List steps the objector is taking to accommodate the incumbent
LEC's changes on an expedited basis;
(3) State the earliest possible date (not to exceed six months from
the date the incumbent LEC gave its original public notice under this
section) by which the objector anticipates that it can accommodate the
incumbent LEC's changes, assuming it receives the technical information
or other assistance requested under paragraph (c)(1) of this section;
(4) Provide any other information relevant to the objection; and
(5) Provide the following affidavit, executed by the objector's
president, chief executive officer, or other corporate officer or
official, who has appropriate authority to bind the corporation, and
knowledge of the details of the objector's inability to adjust its
network on a timely basis:
``I, (name and title), under oath and subject to penalty for
perjury, certify that I have read this objection, that the statements
contained in it are true, that there is good ground to support the
objection, and that it is not interposed for purposes of delay. I have
appropriate authority to make this certification on behalf of (objector)
and I agree to provide any information the Commission may request to
allow the Commission to evaluate the truthfulness and validity of the
statements contained in this objection.''
(d) Response to objections. If an objection is filed, an incumbent
LEC shall have until no later than the fourteenth business day following
the release of the Commission's public notice to file with the
Commission a response to the objection and to serve the response on all
parties that filed objections. An incumbent LEC's response must:
(1) Provide information responsive to the allegations and concerns
identified by the objectors;
(2) State whether the implementation date(s) proposed by the
objector(s) are acceptable;
(3) Indicate any specific technical assistance that the incumbent
LEC is willing to give to the objectors; and
(4) Provide any other relevant information.
(e) Resolution. If an objection is filed pursuant to paragraph (c)
of this section, then the Chief, Wireline Competition Bureau, will issue
an order determining a reasonable public notice period, provided
however, that if an incumbent LEC does not file a response within the
time period allotted, or if the incumbent LEC's response accepts the
latest implementation date stated by an objector, then the incumbent
LEC's public notice shall be deemed amended to specify the
implementation date requested by the objector, without further
Commission action. An incumbent LEC must amend its public notice to
reflect any change in the applicable implementation date pursuant to
Sec. 51.329(b).
(f) Resolution of objections to replacement of copper loops or
copper subloops with fiber-to-the-home loops or fiber-to-the-curb loops.
An objection to a notice that an incumbent LEC intends to retire any
copper loops or copper subloops and replace such loops or subloops with
fiber-to-the-home loops or fiber-to-the-curb loops shall be deemed
denied 90 days after the date on which the Commission releases public
notice of the incumbent LEC filing, unless the Commission rules
otherwise within that time. Until the Commission has either ruled on an
objection or the 90-day period for the Commission's consideration has
expired, an incumbent LEC may not retire those copper loops or copper
subloops at issue for replacement with fiber-to-the-home loops or fiber-
to-the-curb loops.
[61 FR 47352, Sept. 6, 1996, as amended at 67 FR 13226, Mar. 21, 2002;
68 FR 52305, Sept. 2, 2003; 69 FR 77954; Dec. 29, 2004]
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
[[Page 54]]
must include, in addition to the information identified in Sec.
51.327(a), a statement that the incumbent LEC will make further
information available to those signing a nondisclosure agreement.
(b) Tolling the public notice period. Upon receipt by an incumbent
LEC of a competing service provider's request for disclosure of
confidential or proprietary information, the applicable public notice
period will be tolled until the parties agree on the terms of a
nondisclosure agreement. An incumbent LEC receiving such a request must
amend its public notice as follows:
(1) On the date it receives a request from a competing service
provider for disclosure of confidential or proprietary information, to
state that the notice period is tolled; and
(2) On the date the nondisclosure agreement is finalized, to specify
a new implementation date.
[61 FR 47352, Sept. 6, 1996]
Subpart E_Exemptions, Suspensions, and Modifications of Requirements of
Section 251 of the Act
Sec. 51.401 State authority.
A state commission shall determine whether a telephone company is
entitled, pursuant to section 251(f) of the Act, to exemption from, or
suspension or modification of, the requirements of section 251 of the
Act. Such determinations shall be made on a case-by-case basis.
Sec. 51.403 Carriers eligible for suspension or modification under
section 251(f)(2) of the Act.
A LEC is not eligible for a suspension or modification of the
requirements of section 251(b) or section 251(c) of the Act pursuant to
section 251(f)(2) of the Act if such LEC, at the holding company level,
has two percent or more of the subscriber lines installed in the
aggregate nationwide.
Sec. 51.405 Burden of proof.
(a) Upon receipt of a bona fide request for interconnection,
services, or access to unbundled network elements, a rural telephone
company must prove to the state commission that the rural telephone
company should be entitled, pursuant to section 251(f)(1) of the Act, to
continued exemption from the requirements of section 251(c) of the Act.
(b) A LEC with fewer than two percent of the nation's subscriber
lines installed in the aggregate nationwide must prove to the state
commission, pursuant to section 251(f)(2) of the Act, that it is
entitled to a suspension or modification of the application of a
requirement or requirements of section 251(b) or 251(c) of the Act.
(c) In order to justify continued exemption under section 251(f)(1)
of the Act once a bona fide request has been made, an incumbent LEC must
offer evidence that the application of the requirements of section
251(c) of the Act would be likely to cause undue economic burden beyond
the economic burden that is typically associated with efficient
competitive entry.
(d) In order to justify a suspension or modification under section
251(f)(2) of the Act, a LEC must offer evidence that the application of
section 251(b) or section 251(c) of the Act would be likely to cause
undue economic burden beyond the economic burden that is typically
associated with efficient competitive entry.
Subpart F_Pricing of Elements
Sec. 51.501 Scope.
(a) The rules in this subpart apply to the pricing of network
elements, interconnection, and methods of obtaining access to unbundled
elements, including physical collocation and virtual collocation.
(b) As used in this subpart, the term ``element'' includes network
elements, interconnection, and methods of obtaining interconnection and
access to unbundled elements.
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
[[Page 55]]
in Sec. Sec. 51.507 and 51.509, and shall be established, at the
election of the state commission--
(1) Pursuant to the forward-looking economic cost-based pricing
methodology set forth in Sec. Sec. 51.505 and 51.511; or
(2) Consistent with the proxy ceilings and ranges set forth in Sec.
51.513.
(c) The rates that an incumbent LEC assesses for elements shall not
vary on the basis of the class of customers served by the requesting
carrier, or on the type of services that the requesting carrier
purchasing such elements uses them to provide.
Sec. 51.505 Forward-looking economic cost.
(a) In general. The forward-looking economic cost of an element
equals the sum of:
(1) The total element long-run incremental cost of the element, as
described in paragraph (b); and
(2) A reasonable allocation of forward-looking common costs, as
described in paragraph (c).
(b) Total element long-run incremental cost. The total element long-
run incremental cost of an element is the forward-looking cost over the
long run of the total quantity of the facilities and functions that are
directly attributable to, or reasonably identifiable as incremental to,
such element, calculated taking as a given the incumbent LEC's provision
of other elements.
(1) Efficient network configuration. The total element long-run
incremental cost of an element should be measured based on the use of
the most efficient telecommunications technology currently available and
the lowest cost network configuration, given the existing location of
the incumbent LEC's wire centers.
(2) Forward-looking cost of capital. The forward-looking cost of
capital shall be used in calculating the total element long-run
incremental cost of an element.
(3) Depreciation rates. The depreciation rates used in calculating
forward-looking economic costs of elements shall be economic
depreciation rates.
(c) Reasonable allocation of forward-looking common costs--(1)
Forward-looking common costs. Forward-looking common costs are economic
costs efficiently incurred in providing a group of elements or services
(which may include all elements or services provided by the incumbent
LEC) that cannot be attributed directly to individual elements or
services.
(2) Reasonable allocation. (i) The sum of a reasonable allocation of
forward-looking common costs and the total element long-run incremental
cost of an element shall not exceed the stand-alone costs associated
with the element. In this context, stand-alone costs are the total
forward-looking costs, including corporate costs, that would be incurred
to produce a given element if that element were provided by an efficient
firm that produced nothing but the given element.
(ii) The sum of the allocation of forward-looking common costs for
all elements and services shall equal the total forward-looking common
costs, exclusive of retail costs, attributable to operating the
incumbent LEC's total network, so as to provide all the elements and
services offered.
(d) Factors that may not be considered. The following factors shall
not be considered in a calculation of the forward-looking economic cost
of an element:
(1) Embedded costs. Embedded costs are the costs that the incumbent
LEC incurred in the past and that are recorded in the incumbent LEC's
books of accounts;
(2) Retail costs. Retail costs include the costs of marketing,
billing, collection, and other costs associated with offering retail
telecommunications services to subscribers who are not
telecommunications carriers, described in Sec. 51.609;
(3) Opportunity costs. Opportunity costs include the revenues that
the incumbent LEC would have received for the sale of telecommunications
services, in the absence of competition 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
[[Page 56]]
it offers do not exceed the forward-looking economic cost per unit of
providing the element, using a cost study that complies with the
methodology set forth in this section and Sec. 51.511.
(1) A state commission may set a rate outside the proxy ranges or
above the proxy ceilings described in Sec. 51.513 only if that
commission has given full and fair effect to the economic cost based
pricing methodology described in this section and Sec. 51.511 in a
state proceeding that meets the requirements of paragraph (e)(2) of this
section.
(2) Any state proceeding conducted pursuant to this section shall
provide notice and an opportunity for comment to affected parties and
shall result in the creation of a written factual record that is
sufficient for purposes of review. The record of any state proceeding in
which a state commission considers a cost study for purposes of
establishing rates under this section shall include any such cost study.
Sec. 51.507 General rate structure standard.
(a) Element rates shall be structured consistently with the manner
in which the costs of providing the elements are incurred.
(b) The costs of dedicated facilities shall be recovered through
flat-rated charges.
(c) The costs of shared facilities shall be recovered in a manner
that efficiently apportions costs among users. Costs of shared
facilities may be apportioned either through usage-sensitive charges or
capacity-based flat-rated charges, if the state commission finds that
such rates reasonably reflect the costs imposed by the various users.
(d) Recurring costs shall be recovered through recurring charges,
unless an incumbent LEC proves to a state commission that such recurring
costs are de minimis. Recurring costs shall be considered de minimis
when the costs of administering the recurring charge would be excessive
in relation to the amount of the recurring costs.
(e) State commissions may, where reasonable, require incumbent LECs
to recover nonrecurring costs through recurring charges over a
reasonable period of time. Nonrecurring charges shall be allocated
efficiently among requesting telecommunications carriers, and shall not
permit an incumbent LEC to recover more than the total forward-looking
economic cost of providing the applicable element.
(f) State commissions shall establish different rates for elements
in at least three defined geographic areas within the state to reflect
geographic cost differences.
(1) To establish geographically-deaveraged rates, state commissions
may use existing density-related zone pricing plans described in Sec.
69.123 of this chapter, or other such cost-related zone plans
established pursuant to state law.
(2) In states not using such existing plans, state commissions must
create a minimum of three cost-related rate zones.
[61 FR 45619, Aug. 29, 1996, as amended at 64 FR 32207, June 16, 1999;
64 FR 68637, Dec. 8, 1999]
Sec. 51.509 Rate structure standards for specific elements.
In addition to the general rules set forth in Sec. 51.507, rates
for specific elements shall comply with the following rate structure
rules.
(a) Local loop and subloop. Loop and subloop costs shall be
recovered through flat-rated charges.
(b) Local switching. Local switching costs shall be recovered
through a combination of a flat-rated charge for line ports and one or
more flat-rated or per-minute usage charges for the switching matrix and
for trunk ports.
(c) Dedicated transmission links. Dedicated transmission link costs
shall be recovered through flat-rated charges.
(d) Shared transmission facilities between tandem switches and end
offices. The costs of shared transmission facilities between tandem
switches and end offices may be recovered through 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.
[[Page 57]]
(f) Signaling and call-related database services. Signaling and
call-related database service costs shall be usage-sensitive, based on
either the number of queries or the number of messages, with the
exception of the dedicated circuits known as signaling links, the cost
of which shall be recovered through flat-rated charges.
(g) Collocation. Collocation costs shall be recovered consistent
with the rate structure policies established in the Expanded
Interconnection proceeding, CC Docket No. 91-141.
(h) Network interface device. An incumbent LEC must establish a
price for the network interface device when that unbundled network
element is purchased on a stand-alone basis pursuant to Sec. 51.319(c).
[61 FR 45619, Aug. 29, 1996, as amended at 68 FR 52306, Sept. 2, 2003]
Sec. 51.511 Forward-looking economic cost per unit.
(a) The forward-looking economic cost per unit of an element equals
the forward-looking economic cost of the element, as defined in Sec.
51.505, divided by a reasonable projection of the sum of the total
number of units of the element that the incumbent LEC is likely to
provide to requesting telecommunications carriers and the total number
of units of the element that the incumbent LEC is likely to use in
offering its own services, during a reasonable measuring period.
(b)(1) With respect to elements that an incumbent LEC offers on a
flat-rate basis, the number of units is defined as the discrete number
of elements (e.g., local loops or local switch ports) that the incumbent
LEC uses or provides.
(2) With respect to elements that an incumbent LEC offers on a
usage-sensitive basis, the number of units is defined as the unit of
measurement of the usage (e.g., minutes of use or call-related database
queries) of the element.
Sec. 51.513 Proxies for forward-looking economic cost.
(a) A state commission may determine that the cost information
available to it with respect to one or more elements does not support
the adoption of a rate or rates that are consistent with the
requirements set forth in Sec. Sec. 51.505 and 51.511. In that event,
the state commission may establish a rate for an element that is
consistent with the proxies specified in this section, provided that:
(1) Any rate established through use of such proxies shall be
superseded once the state commission has completed review of a cost
study that complies with the forward-looking economic cost based pricing
methodology described in Sec. Sec. 51.505 and 51.511, and has concluded
that such study is a reasonable basis for establishing element rates;
and
(2) The state commission sets forth in writing a reasonable basis
for its selection of a particular rate for the element.
(b) The constraints on proxy-based rates described in this section
apply on a geographically averaged basis. For purposes of determining
whether geographically deaveraged rates for elements comply with the
provisions of this section, a geographically averaged proxy-based rate
shall be computed based on the weighted average of the actual,
geographically deaveraged rates that apply in separate geographic areas
in a state.
(c) Proxies for specific elements--(1) Local loops. For each state
listed below, the proxy-based monthly rate for unbundled local loops, on
a statewide weighted average basis, shall be no greater than the figures
listed in the table below. (The Commission has not established a default
proxy ceiling for loop rates in Alaska.)
Table
------------------------------------------------------------------------
Proxy
State ceiling
------------------------------------------------------------------------
Alabama....................................................... $17.25
Arizona....................................................... 12.85
Arkansas...................................................... 21.18
California.................................................... 11.10
Colorado...................................................... 14.97
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
[[Page 58]]
Maryland...................................................... 13.36
Massachusetts................................................. 9.83
Michigan...................................................... 15.27
Minnesota..................................................... 14.81
Mississippi................................................... 21.97
Missouri...................................................... 18.32
Montana....................................................... 25.18
Nebraska...................................................... 18.05
Nevada........................................................ 18.95
New Hampshire................................................. 16.00
New Jersey.................................................... 12.47
New Mexico.................................................... 18.66
New York...................................................... 11.75
North Carolina................................................ 16.71
North Dakota.................................................. 25.36
Ohio.......................................................... 15.73
Oklahoma...................................................... 17.63
Oregon........................................................ 15.44
Pennsylvania.................................................. 12.30
Puerto Rico................................................... 12.47
Rhode Island.................................................. 11.48
South Carolina................................................ 17.07
South Dakota.................................................. 25.33
Tennessee..................................................... 17.41
Texas......................................................... 15.49
Utah.......................................................... 15.12
Vermont....................................................... 20.13
Virginia...................................................... 14.13
Washington.................................................... 13.37
West Virginia................................................. 19.25
Wisconsin..................................................... 15.94
Wyoming....................................................... 25.11
------------------------------------------------------------------------
(2) Local switching. (i) The blended proxy-based rate for the usage-
sensitive component of the unbundled local switching element, including
the switching matrix, the functionalities used to provide vertical
features, and the trunk ports, shall be no greater than 0.4 cents
($0.004) per minute, and no less than 0.2 cents ($0.002) per minute,
except that, where a state commission has, before August 8, 1996,
established a rate less than or equal to 0.5 cents ($0.005) per minute,
that rate may be retained pending completion of a forward-looking
economic cost study. If a flat-rated charge is established for these
components, it shall be converted to a per-minute rate by dividing the
projected average minutes of use per flat-rated subelement, for purposes
of assessing compliance with this proxy. A weighted average of such
flat-rate or usage-sensitive charges shall be used in appropriate
circumstances, such as when peak and off-peak charges are used.
(ii) The blended proxy-based rate for the line port component of the
local switching element shall be no less than $1.10, and no more than
$2.00, per line port per month for ports used in the delivery of basic
residential and business exchange services.
(3) Dedicated transmission links. The proxy-based rates for
dedicated transmission links shall be no greater than the incumbent
LEC's tariffed interstate charges for comparable entrance facilities or
direct-trunked transport offerings, as described in Sec. Sec. 69.110
and 69.112 of this chapter.
(4) Shared transmission facilities between tandem switches and end
offices. The proxy-based rates for shared transmission facilities
between tandem switches and end offices shall be no greater than the
weighted per-minute equivalent of DS1 and DS3 interoffice dedicated
transmission link rates that reflects the relative number of DS1 and DS3
circuits used in the tandem to end office links (or a surrogate based on
the proportion of copper and fiber facilities in the interoffice
network), calculated using a loading factor of 9,000 minutes per month
per voice-grade circuit, as described in Sec. 69.112 of this chapter.
(5) Tandem switching. The proxy-based rate for tandem switching
shall be no greater than 0.15 cents ($0.0015) per minute of use.
(6) Collocation. To the extent that the incumbent LEC offers a
comparable form of collocation in its interstate expanded
interconnection tariffs, as described in Sec. Sec. 64.1401 and 69.121
of this chapter, the proxy-based rates for collocation shall be no
greater than the effective rates for equivalent services in the
interstate expanded interconnection tariff. To the extent that the
incumbent LEC does not offer a comparable form of collocation in its
interstate expanded interconnection tariffs, a state commission may, in
its discretion, establish a proxy-based rate, provided that the state
commission sets 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
[[Page 59]]
rates pursuant to Sec. 61.49(h) of this chapter, the proxy-based rates
for those elements shall be no greater than the effective rates for
equivalent services in the interstate access tariffs. In other cases,
the proxy-based rate shall be no greater than a rate based on direct
costs plus a reasonable allocation of overhead loadings, pursuant to
Sec. 61.49(h) of this chapter.
[61 FR 45619, Aug. 29, 1996, as amended at 61 FR 52709, Oct. 8, 1996]
Sec. 51.515 Application of access charges.
(a)-(b) [Reserved]
(c) Notwithstanding Sec. Sec. 51.505, 51.511, and 51.513(d)(2) and
paragraph (a) of this section, an incumbent LEC may assess upon
telecommunications carriers that purchase unbundled local switching
elements, as described in Sec. 51.319(c)(1), for intrastate toll
minutes of use traversing such unbundled local switching elements,
intrastate access charges comparable to those listed in paragraph (b)
and any explicit intrastate universal service mechanism based on access
charges, only until the earliest of the following, and not thereafter:
(1) June 30, 1997;
(2) The effective date of a state commission decision that an
incumbent LEC may not assess such charges; or
(3) With respect to a Bell operating company only, the date on which
that company is authorized to offer in-region interLATA service in the
state pursuant to section 271 of the Act. The end date for Bell
operating companies that are authorized to offer interLATA service shall
apply only to the recovery of access charges in those states in which
the Bell operating company is authorized to offer such service.
(d) Interstate access charges described in part 69 shall not be
assessed by incumbent LECs on each element purchased by requesting
carriers providing both telephone exchange and exchange access services
to such requesting carriers' end users.
[61 FR 45619, Aug. 29, 1996, as amended at 62 FR 45587, Aug. 28, 1997;
71 FR 65750, Nov. 9, 2006]
Subpart G_Resale
Sec. 51.601 Scope of resale rules.
The provisions of this subpart govern the terms and conditions under
which LECs offer telecommunications services to requesting
telecommunications carriers for resale.
Sec. 51.603 Resale obligation of all local exchange carriers.
(a) A LEC shall make its telecommunications services available for
resale to requesting telecommunications carriers on terms and conditions
that are reasonable and non-discriminatory.
(b) A LEC must provide services to requesting telecommunications
carriers for resale that are equal in quality, subject to the same
conditions, and provided within the same provisioning time intervals
that the LEC provides these services to others, including end users.
Sec. 51.605 Additional obligations of incumbent local exchange
carriers.
(a) An incumbent LEC shall offer to any requesting
telecommunications carrier any telecommunications service that the
incumbent LEC offers on a retail basis to subscribers that are not
telecommunications carriers for resale at wholesale rates that are, at
the election of the state commission--
(1) Consistent with the avoided cost methodology described in
Sec. Sec. 51.607 and 51.609; or
(2) Interim wholesale rates, pursuant to Sec. 51.611.
(b) For purposes of this subpart, exchange access services, as
defined in section 3 of the Act, shall not be considered to be
telecommunications services that incumbent LECs must make available for
resale at wholesale rates to requesting telecommunications carriers.
(c) For purposes of this subpart, advanced telecommunications
services sold to Internet Service Providers as an input component to the
Internet Service Providers' retail Internet service offering shall not
be considered to be telecommunications services offered on a retail
basis that incumbent LECs must make available for resale at
[[Page 60]]
wholesale rates to requesting telecommunications carriers.
(d) Notwithstanding paragraph (b) of this section, advanced
telecommunications services that are classified as exchange access
services are subject to the obligations of paragraph (a) of this section
if such services are sold on a retail basis to residential and business
end-users that are not telecommunications carriers.
(e) Except as provided in Sec. 51.613, an incumbent LEC shall not
impose restrictions on the resale by a requesting carrier of
telecommunications services offered by the incumbent LEC.
[61 FR 45619, Aug. 29, 1996, as amended at 65 FR 6915, Feb. 11, 2000]
Sec. 51.607 Wholesale pricing standard.
The wholesale rate that an incumbent LEC may charge for a
telecommunications service provided for resale to other
telecommunications carriers shall equal the rate for the
telecommunications service, less avoided retail costs, as described in
section 51.609. For purposes of this subpart, exchange access services,
as defined in section 3 of the Act, shall not be considered to be
telecommunications services that incumbent LECs must make available for
resale at wholesale rates to requesting telecommunications carriers.
[65 FR 6915, Feb. 11, 2000]
Sec. 51.609 Determination of avoided retail costs.
(a) Except as provided in Sec. 51.611, the amount of avoided retail
costs shall be determined on the basis of a cost study that complies
with the requirements of this section.
(b) Avoided retail costs shall be those costs that reasonably can be
avoided when an incumbent LEC provides a telecommunications service for
resale at wholesale rates to a requesting carrier.
(c) For incumbent LECs that are designated as Class A companies
under Sec. 32.11 of this chapter, except as provided in paragraph (d)
of this section, avoided retail costs shall:
(1) Include as direct costs, the costs recorded in USOA accounts
6611 (product management and sales), 6613 (product advertising), 6621
(call completion services), 6622, (number services), and 6623 (customer
services) (Sec. Sec. 32.6611, 32.6613, 32.6621, 32.6622, and 32.6623 of
this chapter);
(2) Include, as indirect costs, a portion of the costs recorded in
USOA accounts 6121-6124 (general support expenses), 6720 (corporate
operations expenses), and uncollectible telecommunications revenue
included in 5300 (uncollectible revenue) (Secs. 32.6121 through 32.6124,
32.6720 and 32.5300 of this chapter); and
(3) Not include plant-specific expenses and plant non-specific
expenses, other than general support expenses (Sec. Sec. 32.6112-6114,
32.6211-6565 of this chapter).
(d) Costs included in accounts 6611, 6613 and 6621-6623 described in
paragraph (c) of this section (Sec. Sec. 32.6611, 32.6613, and 32.6621-
6623 of this chapter) may be included in wholesale rates only to the
extent that the incumbent LEC proves to a state commission that specific
costs in these accounts will be incurred and are not avoidable with
respect to services sold at wholesale, or that specific costs in these
accounts are not included in the retail prices of resold services. Costs
included in accounts 6112-6114 and 6211-6565 described in paragraph (c)
of this section (Sec. Sec. 32.6112-32.6114, 32.6211-32.6565 of this
chapter) may be treated as avoided retail costs, and excluded from
wholesale rates, only to the extent that a party proves to a state
commission that specific costs in these accounts can reasonably be
avoided when an incumbent LEC provides a telecommunications service for
resale to a requesting carrier.
(e) For incumbent LECs that are designated as Class B companies
under Sec. 32.11 of this chapter and that record information in summary
accounts instead of specific USOA accounts, the entire relevant summary
accounts may be used in lieu of the specific USOA accounts listed in
paragraphs (c) and (d) of this section.
[61 FR 45619, Aug. 29, 1996, as amended at 67 FR 5700, Feb. 6, 2002; 69
FR 53652, Sept. 2, 2004]
[[Page 61]]
Sec. 51.611 Interim wholesale rates.
(a) If a state commission cannot, based on the information available
to it, establish a wholesale rate using the methodology prescribed in
Sec. 51.609, then the state commission may elect to establish an
interim wholesale rate as described in paragraph (b) of this section.
(b) The state commission may establish interim wholesale rates that
are at least 17 percent, and no more than 25 percent, below the
incumbent LEC's existing retail rates, and shall articulate the basis
for selecting a particular discount rate. The same discount percentage
rate shall be used to establish interim wholesale rates for each
telecommunications service.
(c) A state commission that establishes interim wholesale rates
shall, within a reasonable period of time thereafter, establish
wholesale rates on the basis of an avoided retail cost study that
complies with Sec. 51.609.
Sec. 51.613 Restrictions on resale.
(a) Notwithstanding Sec. 51.605(b), the following types of
restrictions on resale may be imposed:
(1) Cross-class selling. A state commission may permit an incumbent
LEC to prohibit a requesting telecommunications carrier that purchases
at wholesale rates for resale, telecommunications services that the
incumbent LEC makes available only to residential customers or to a
limited class of residential customers, from offering such services to
classes of customers that are not eligible to subscribe to such services
from the incumbent LEC.
(2) Short term promotions. An incumbent LEC shall apply the
wholesale discount to the ordinary rate for a retail service rather than
a special promotional rate only if:
(i) Such promotions involve rates that will be in effect for no more
than 90 days; and
(ii) The incumbent LEC does not use such promotional offerings to
evade the wholesale rate obligation, for example by making available a
sequential series of 90-day promotional rates.
(b) With respect to any restrictions on resale not permitted under
paragraph (a), an incumbent LEC may impose a restriction only if it
proves to the state commission that the restriction is reasonable and
nondiscriminatory.
(c) Branding. Where operator, call completion, or directory
assistance service is part of the service or service package an
incumbent LEC offers for resale, failure by an incumbent LEC to comply
with reseller unbranding or rebranding requests shall constitute a
restriction on resale.
(1) An incumbent LEC may impose such a restriction only if it proves
to the state commission that the restriction is reasonable and
nondiscriminatory, such as by proving to a state commission that the
incumbent LEC lacks the capability to comply with unbranding or
rebranding requests.
(2) For purposes of this subpart, unbranding or rebranding shall
mean that operator, call completion, or directory assistance services
are offered in such a manner that an incumbent LEC's brand name or other
identifying information is not identified to subscribers, or that such
services are offered in such a manner that identifies to subscribers the
requesting carrier's brand name or other identifying information.
Sec. 51.615 Withdrawal of services.
When an incumbent LEC makes a telecommunications service available
only to a limited group of customers that have purchased such a service
in the past, the incumbent LEC must also make such a service available
at wholesale rates to requesting carriers to offer on a resale basis to
the same limited group of customers that have purchased such a service
in the past.
Sec. 51.617 Assessment of end user common line charge on resellers.
(a) Notwithstanding the provision in Sec. 69.104(a) of this chapter
that the end user common line charge be assessed upon end users, an
incumbent LEC shall assess this charge, and the charge for changing the
designated primary 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.
[[Page 62]]
(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. 51.700 Purpose of this subpart.
The purpose of this subpart, as revised in 2011 by FCC 11-161 is to
establish rules governing the transition of intercarrier compensation
from a calling-party's-network pays system to a default bill-and-keep
methodology. Following the transition, the exchange of
telecommunications traffic between and among service providers will, by
default, be governed by bill-and-keep arrangements.
Note to Sec. 51.700: See FCC 11-161, figure 9 (chart identifying
steps in the transition).
[76 FR 73854, Nov. 29, 2011]
Sec. 51.701 Scope of transport and termination pricing rules.
(a) Effective December 29, 2011, compensation for telecommunications
traffic exchanged between two telecommunications carriers that is
interstate or intrastate exchange access, information access, or
exchange services for such access, other than special access, is
specified in subpart J of this part. The provisions of this subpart
apply to Non-Access Reciprocal Compensation for transport and
termination of Non-Access Telecommunications Traffic between LECs and
other telecommunications carriers.
(b) Non-Access Telecommunications Traffic. For purposes of this
subpart, Non-Access 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.
(3) This definition includes telecommunications traffic exchanged
between a LEC and another telecommunications carrier in Time Division
Multiplexing (TDM) format that originates and/or terminates in IP format
and that otherwise meets the definitions in paragraphs (b)(1) or (b)(2)
of this section. Telecommunications traffic originates and/or terminates
in IP format if it originates from and/or terminates to an end-user
customer of a service that requires Internet protocol-compatible
customer premises equipment.
(c) Transport. For purposes of this subpart, transport is the
transmission and any necessary tandem switching of Non-Access
Telecommunications Traffic subject to section 251(b)(5) of the
Communications Act of 1934, as amended, 47 U.S.C. 251(b)(5), 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 Non-Access 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) Non-Access Reciprocal Compensation. For purposes of this
subpart, a Non-Access Reciprocal Compensation arrangement between two
carriers is either a bill-and-keep arrangement, per Sec. 51.713, or an
arrangement in which
[[Page 63]]
each carrier receives intercarrier compensation for the transport and
termination of Non-Access Telecommunications Traffic.
[61 FR 45619, Aug. 29, 1996, as amended at 66 FR 26806, May 15, 2001; 76
FR 73855, Nov. 29, 2011]
Sec. 51.703 Non-Access reciprocal compensation obligation of LECs.
(a) Each LEC shall establish Non-Access Reciprocal Compensation
arrangements for transport and termination of Non-Access
Telecommunications Traffic with any requesting telecommunications
carrier.
(b) A LEC may not assess charges on any other telecommunications
carrier for Non-Access Telecommunications Traffic that originates on the
LEC's network.
(c) Notwithstanding any other provision of the Commission's rules, a
LEC shall be entitled to assess and collect the full charges for the
transport and termination of Non-Access Telecommunications Traffic,
regardless of whether the local exchange carrier assessing the
applicable charges itself delivers such traffic to the called party's
premises or delivers the call to the called party's premises via
contractual or other arrangements with an affiliated or unaffiliated
provider of interconnected VoIP service, as defined in 47 U.S.C.
153(25), or a non-interconnected VoIP service, as defined in 47 U.S.C.
153(36), that does not itself seek to collect Non-Access Reciprocal
Compensation charges for the transport and termination of that Non-
Access Telecommunications Traffic. In no event may the total charges
that a LEC may assess for such service to the called location exceed the
applicable transport and termination rate. For purposes of this section,
the facilities used by the LEC and affiliated or unaffiliated provider
of interconnected VoIP service or a non-interconnected VoIP service for
the transport and termination of such traffic shall be deemed an
equivalent facility under Sec. 51.701.
[76 FR 73855, Nov. 29, 2011]
Sec. 51.705 LECs' rates for transport and termination.
(a) Notwithstanding any other provision of the Commission's rules,
by default, transport and termination for Non-Access Telecommunications
Traffic exchanged between a local exchange carrier and a CMRS provider
within the scope of Sec. 51.701(b)(2) shall be pursuant to a bill-and-
keep arrangement, as provided in Sec. 51.713.
(b) Establishment of incumbent LECs' rates for transport and
termination:
(1) This provision applies when, in the absence of a negotiated
agreement between parties, state commissions establish Non-Access
Reciprocal Compensation rates for the exchange of Non-Access
Telecommunications Traffic between a local exchange carrier and a
telecommunications carrier other than a CMRS provider where the
incumbent local exchange carriers did not have any such rates as of
December 29, 2011. Any rates established pursuant to this provision
apply between December 29, 2011 and the date at which they are
superseded by the transition specified in paragraphs (c)(2) through
(c)(5) of this section.
(2) 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:
(i) The forward-looking economic costs of such offerings, using a
cost study pursuant to Sec. Sec. 51.505 and 51.511; or
(ii) A bill-and-keep arrangement, as provided in Sec. 51.713.
(3) In cases where both carriers in a Non-Access 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.
(c) Except as provided by paragraph (a) of this section, and
notwithstanding any other provision of the Commission's rules, default
transitional Non-Access Reciprocal Compensation rates shall be
determined as follows:
(1) Effective December 29, 2011, no telecommunications carrier may
increase a Non-Access Reciprocal Compensation for transport or
termination above the level in effect on December 29, 2011. All Bill-
and-Keep Arrangements in effect on December 29, 2011
[[Page 64]]
shall remain in place unless both parties mutually agree to an
alternative arrangement.
(2) Beginning July 1, 2012, if any telecommunications carrier's Non-
Access Reciprocal Compensation rates in effect on December 29, 2011 or
established pursuant to paragraph (b) of this section subsequent to
December 29, 2011, exceed that carrier's interstate access rates for
functionally equivalent services in effect in the same state on December
29, 2011, that carrier shall reduce its reciprocal compensation rate by
one half of the difference between the Non-Access Reciprocal
Compensation rate and the corresponding functionally equivalent
interstate access rate.
(3) Beginning July 1, 2013, no telecommunications carrier's Non-
Access Reciprocal Compensation rates shall exceed that carrier's
tariffed interstate access rate in effect in the same state on January 1
of that same year, for equivalent functionality.
(4) After July 1, 2018, all Price-Cap Local Exchange Carrier's Non-
Access Reciprocal Compensation rates and all non-incumbent LECs that
benchmark access rates to Price Cap Carrier shall be set pursuant to
Bill-and-Keep arrangements for Non-Access Reciprocal Compensation as
defined in this subpart.
(5) After July 1, 2020, all Rate-of-Return Local Exchange Carrier's
Non-Access Reciprocal Compensation rates and all non-incumbent LECs that
benchmark access rates to Rate-of-Return Carriers shall be set pursuant
to Bill-and-Keep arrangements for Non-Access Reciprocal Compensation as
defined in this subpart.
[76 FR 73855, Nov. 29, 2011]
Sec. 51.707 [Reserved]
Sec. 51.709 Rate structure for transport and termination.
(a) In state proceedings, where a rate for Non-Access Reciprocal
Compensation does not exist as of December 29, 2011, a state commission
shall establish initial rates for the transport and termination of Non-
Access Telecommunications Traffic that are structured consistently with
the manner that carriers incur those costs, and consistently with the
principles in this section.
(b) The rate of a carrier providing transmission facilities
dedicated to the transmission of non-access traffic between two
carriers' networks shall recover only the costs of the proportion of
that trunk capacity used by an interconnecting carrier to send non-
access traffic that will terminate on the providing carrier's network.
Such proportions may be measured during peak periods.
(c) For Non-Access Telecommunications Traffic exchanged between a
rate-of-return regulated rural telephone company as defined in Sec.
51.5 and a CMRS provider, the rural rate-of-return incumbent local
exchange carrier will be responsible for transport to the CMRS
provider's interconnection point when it is located within the rural
rate-of-return incumbent local exchange carrier's service area. When the
CMRS provider's interconnection point is located outside the rural rate-
of-return incumbent local exchange carrier's service area, the rural
rate-of-return incumbent local exchange carrier's transport and
provisioning obligation stops at its meet point and the CMRS provider is
responsible for the remaining transport to its interconnection point.
This paragraph (c) is a default provision and applicable in the absence
of an existing agreement or arrangement otherwise.
[76 FR 73856, Nov. 29, 2011]
Sec. 51.711 Symmetrical reciprocal compensation.
(a) Rates for transport and termination of Non-Access
Telecommunications Traffic shall be symmetrical, unless carriers
mutually agree otherwise, 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 Non-Access 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
[[Page 65]]
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) Except as provided in Sec. 51.705, a state commission may
establish asymmetrical rates for transport and termination of Non-Access
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 Sec. Sec. 51.505
and 51.511, that the forward-looking costs for a network efficiently
configured and operated by the carrier other than the incumbent LEC (or
the smaller of two incumbent LECs), exceed the costs incurred by the
incumbent LEC (or the larger incumbent LEC), and, consequently, that
such that a higher rate is justified.
(c) Pending further proceedings before the Commission, a state
commission shall establish the rates that licensees in the Paging and
Radiotelephone Service (defined in part 22, subpart E of this chapter),
Narrowband Personal Communications Services (defined in part 24, subpart
D of this chapter), and Paging Operations in the Private Land Mobile
Radio Services (defined in part 90, subpart P of this chapter) may
assess upon other carriers for the transport and termination of
telecommunications traffic based on the forward-looking costs that such
licensees incur in providing such services, pursuant to Sec. Sec.
51.505 and 51.511. Such licensees' rates shall not be set based on the
default proxies described in Sec. 51.707.
[61 FR 45619, Aug. 29, 1996, as amended at 76 FR 73856, Nov. 29, 2011]
Sec. 51.713 Bill-and-keep arrangements.
Bill-and-keep arrangements are those in which carriers exchanging
telecommunications traffic do not charge each other for specific
transport and/or termination functions or services.
[76 FR 73856, Nov. 29, 2011]
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 Non-Access
Telecommunications Traffic immediately under an interim arrangement,
pending resolution of negotiation or arbitration regarding transport and
termination rates and approval of such rates by a state commission under
sections 251 and 252 of the Act.
(1) This requirement shall not apply when the requesting carrier has
an existing interconnection arrangement that provides for the transport
and termination of Non-Access 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 Non-Access
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 not established
transport and termination rates based on forward-looking economic cost
studies, an incumbent LEC shall set interim transport and termination
rates either at the default ceilings specified in Sec. 51.705(c) or in
accordance with a bill-and-keep methodology as defined in Sec. 51.713.
(3) In a state in which the state commission has neither established
transport and termination rates based on forward-looking economic cost
studies
[[Page 66]]
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 Non-Access
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.
[61 FR 45619, Aug. 29, 1996, as amended at 76 FR 73856, Nov. 29, 2011]
Sec. 51.717 [Reserved]
Subpart I_Procedures for Implementation of Section 252 of the Act
Sec. 51.801 Commission action upon a state commission's failure to
act to carry out its responsibility under section 252 of the Act.
(a) If a state commission fails to act to carry out its
responsibility under section 252 of the Act in any proceeding or other
matter under section 252 of the Act, the Commission shall issue an order
preempting the state commission's jurisdiction of that proceeding or
matter within 90 days after being notified (or taking notice) of such
failure, and shall assume the responsibility of the state commission
under section 252 of the Act with respect to the proceeding or matter
and shall act for the state commission.
(b) For purposes of this part, a state commission fails to act if
the state commission fails to respond, within a reasonable time, to a
request for mediation, as provided for in section 252(a)(2) of the Act,
or for a request for arbitration, as provided for in section 252(b) of
the Act, or fails to complete an arbitration within the time limits
established in section 252(b)(4)(C) of the Act.
(c) A state shall not be deemed to have failed to act for purposes
of section 252(e)(5) of the Act if an agreement is deemed approved under
section 252(e)(4) of the Act.
Sec. 51.803 Procedures for Commission notification of a state
commission's failure to act.
(a) Any party seeking preemption of a state commission's
jurisdiction, based on the state commission's failure to act, shall
notify the Commission in accordance with following procedures:
(1) Such party shall file with the Secretary of the Commission a
petition, supported by an affidavit, that states with specificity the
basis for the petition and any information that supports the claim that
the state has failed to act, including, but not limited to, the
applicable provisions of the Act and the factual circumstances
supporting a finding that the state commission has failed to act;
(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
[[Page 67]]
act to carry out its responsibilities under section 252 of the Act.
(c) The Commission, pursuant to section 252(e)(5) of the Act, may
take notice upon its own motion that a state commission has failed to
act. In such a case, the Commission shall issue a public notice that the
Commission has taken notice of a state commission's failure to act. The
applicable state commission and the parties to a proceeding or matter in
which the Commission has taken notice of the state commission's failure
to act may file, within fifteen days of the issuance of the public
notice, comments on whether the Commission is required to assume the
responsibility of the state commission under section 252 of the Act with
respect to the proceeding or matter.
(d) The Commission shall issue an order determining whether it is
required to preempt the state commission's jurisdiction of a proceeding
or matter within 90 days after being notified under paragraph (a) of
this section or taking notice under paragraph (c) of this section of a
state commission's failure to carry out its responsibilities under
section 252 of the Act.
Sec. 51.805 The Commission's authority over proceedings and matters.
(a) If the Commission assumes responsibility for a proceeding or
matter pursuant to section 252(e)(5) of the Act, the Commission shall
retain jurisdiction over such proceeding or matter. At a minimum, the
Commission shall approve or reject any interconnection agreement adopted
by negotiation, mediation or arbitration for which the Commission,
pursuant to section 252(e)(5) of the Act, has assumed the state's
commission's responsibilities.
(b) Agreements reached pursuant to mediation or arbitration by the
Commission pursuant to section 252(e)(5) of the Act are not required to
be submitted to the state commission for approval or rejection.
Sec. 51.807 Arbitration and mediation of agreements by the Commission
pursuant to section 252(e)(5) of the Act.
(a) The rules established in this section shall apply only to
instances in which the Commission assumes jurisdiction under section
252(e)(5) of the Act.
(b) When the Commission assumes responsibility for a proceeding or
matter pursuant to section 252(e)(5) of the Act, it shall not be bound
by state laws and standards that would have applied to the state
commission in such proceeding or matter.
(c) In resolving, by arbitration under section 252(b) of the Act,
any open issues and in imposing conditions upon the parties to the
agreement, the Commission shall:
(1) Ensure that such resolution and conditions meet the requirements
of section 251 of the Act, including the rules prescribed by the
Commission pursuant to that section;
(2) Establish any rates for interconnection, services, or network
elements according to section 252(d) of the Act, including the rules
prescribed by the Commission pursuant to that section; and
(3) Provide a schedule for implementation of the terms and
conditions by the parties to the agreement.
(d) An arbitrator, acting pursuant to the Commission's authority
under section 252(e)(5) of the Act, shall use final offer arbitration,
except as otherwise provided in this section:
(1) At the discretion of the arbitrator, final offer arbitration may
take the form of either entire package final offer arbitration or issue-
by-issue final offer arbitration.
(2) Negotiations among the parties may continue, with or without the
assistance of the arbitrator, after final 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
[[Page 68]]
the Commission pursuant to that section;
(2) Establish rates for interconnection, services, or access to
unbundled network elements according to section 252(d) of the Act,
including the rules prescribed by the Commission pursuant to that
section; and
(3) Provide a schedule for implementation of the terms and
conditions by the parties to the agreement. If a final offer submitted
by one or more parties fails to comply with the requirements of this
section or if the arbitrator determines in unique circumstances that
another result would better implement the Communications Act, the
arbitrator has discretion to take steps designed to result in an
arbitrated agreement that satisfies the requirements of section 252(c)
of the Act, including requiring parties to submit new final offers
within a time frame specified by the arbitrator, or adopting a result
not submitted by any party that is consistent with the requirements of
section 252(c) of the Act, and the rules prescribed by the Commission
pursuant to that section.
(g) Participation in the arbitration proceeding will be limited to
the requesting telecommunications carrier and the incumbent LEC, except
that the Commission will consider requests by third parties to file
written pleadings.
(h) Absent mutual consent of the parties to change any terms and
conditions adopted by the arbitrator, the decision of the arbitrator
shall be binding on the parties.
[61 FR 45619, Aug. 29, 1996, as amended at 66 FR 8520, Feb. 1, 2001]
Sec. 51.809 Availability of agreements to other telecommunications
carriers under section 252(i) of the Act.
(a) An incumbent LEC shall make available without unreasonable delay
to any requesting telecommunications carrier any agreement in its
entirety to which the incumbent LEC is a party that is approved by a
state commission pursuant to section 252 of the Act, upon the same
rates, terms, and conditions as those provided in the agreement. An
incumbent LEC may not limit the availability of any agreement only to
those requesting carriers serving a comparable class of subscribers or
providing the same service (i.e., local, access, or interexchange) as
the original party to the agreement.
(b) The obligations of paragraph (a) of this section shall not apply
where the incumbent LEC proves to the state commission that:
(1) The costs of providing a particular agreement to the requesting
telecommunications carrier are greater than the costs of providing it to
the telecommunications carrier that originally negotiated the agreement,
or
(2) The provision of a particular agreement to the requesting
carrier is not technically feasible.
(c) Individual agreements shall remain available for use by
telecommunications carriers pursuant to this section for a reasonable
period of time after the approved agreement is available for public
inspection under section 252(h) of the Act.
[69 FR 43771, July 22, 2004]
Subpart J_Transitional Access Service Pricing
Source: 76 FR 73856, Nov. 29, 2011, unless otherwise noted.
Sec. 51.901 Purpose and scope of transitional access service pricing
rules.
(a) The purpose of this section is to establish rules governing the
transition of intercarrier compensation from a calling-party's-network
pays system to a default bill-and-keep methodology. Following the
transition, the exchange of traffic between and among service providers
will, by default, be governed by bill-and-keep arrangements.
(b) Effective December 29, 2011, the provisions of this subpart
apply to reciprocal compensation for telecommunications traffic
exchanged between telecommunications providers that is interstate or
intrastate exchange access, information access, or exchange services for
such access, other than special access.
Note to Sec. 51.901: See FCC 11-161, figure 9 (chart identifying
steps in the transition).
Sec. 51.903 Definitions.
For the purposes of this subpart:
[[Page 69]]
(a) Competitive Local Exchange Carrier. A Competitive Local Exchange
Carrier is any local exchange carrier, as defined in Sec. 51.5, that is
not an incumbent local exchange carrier .
(b) Composite Terminating End Office Access Rate means terminating
End Office Access Service revenue, calculated using demand for a given
time period, divided by end office switching minutes for the same time
period.
(c) Dedicated Transport Access Service means originating and
terminating transport on circuits dedicated to the use of a single
carrier or other customer provided by an incumbent local exchange
carrier or any functional equivalent of the incumbent local exchange
carrier access service provided by a non-incumbent local exchange
carrier. Dedicated Transport Access Service rate elements for an
incumbent local exchange carrier include the entrance facility rate
elements specified in Sec. 69.110 of this chapter, the dedicated
transport rate elements specified in Sec. 69.111 of this chapter, the
direct-trunked transport rate elements specified in Sec. 69.112 of this
chapter, and the intrastate rate elements for functionally equivalent
access services. Dedicated Transport Access Service rate elements for a
non-incumbent local exchange carrier include any functionally equivalent
access services.
(d) End Office Access Service means:
(1) The switching of access traffic at the carrier's end office
switch and the delivery to or from of such traffic to the called party's
premises;
(2) The routing of interexchange telecommunications traffic to or
from the called party's premises, either directly or via contractual or
other arrangements with an affiliated or unaffiliated entity, regardless
of the specific functions provided or facilities used; or
(3) Any functional equivalent of the incumbent local exchange
carrier access service provided by a non-incumbent local exchange
carrier. End Office Access Service rate elements for an incumbent local
exchange carrier include the local switching rate elements specified in
Sec. 69.106 of this chapter, the carrier common line rate elements
specified in Sec. 69.154 of this chapter, and the intrastate rate
elements for functionally equivalent access services. End Office Access
Service rate elements for an incumbent local exchange carrier also
include any rate elements assessed on local switching access minutes,
including the information surcharge and residual rate elements. End
office Access Service rate elements for a non-incumbent local exchange
carrier include any functionally equivalent access service.
Note to paragraph (d): For incumbent local exchange carriers,
residual rate elements may include, for example, state Transport
Interconnection Charges, Residual Interconnection Charges, and PICCs.
For non-incumbent local exchange carriers, residual rate elements may
include any functionally equivalent access service.
(e) Fiscal Year 2011 means October 1, 2010 through September 30,
2011.
(f) Price Cap Carrier has the same meaning as that term is defined
in Sec. 61.3(aa) of this chapter.
(g) Rate-of-Return Carrier is any incumbent local exchange carrier
not subject to price cap regulation as that term is defined in Sec.
61.3(aa) of this chapter, but only with respect to the territory in
which it operates as an incumbent local exchange carrier.
(h) Access Reciprocal Compensation means telecommunications traffic
exchanged between telecommunications service providers that is
interstate or intrastate exchange access, information access, or
exchange services for such access, other than special access.
(i) Tandem-Switched Transport Access Service means:
(1) Tandem switching and common transport between the tandem switch
and end office; or
(2) Any functional equivalent of the incumbent local exchange
carrier access service provided by a non-incumbent local exchange
carrier via other facilities. Tandem-Switched Transport rate elements
for an incumbent local exchange carrier include the rate elements
specified in Sec. 69.111 of this chapter, except for the dedicated
transport rate elements specified in that section, and intrastate rate
elements for functionally equivalent service. Tandem Switched Transport
Access Service rate elements for a non-incumbent local exchange carrier
include any functionally equivalent access service.
[[Page 70]]
(j) Transitional Intrastate Access Service means terminating End
Office Access Service that was subject to intrastate access rates as of
December 31, 2011; terminating Tandem-Switched Transport Access Service
that was subject to intrastate access rates as of December 31, 2011; and
originating and terminating Dedicated Transport Access Service that was
subject to intrastate access rates as of December 31, 2011.
Sec. 51.905 Implementation.
(a) The rates set forth in this section are default rates.
Notwithstanding any other provision of the Commission's rules,
telecommunications carriers may agree to rates different from the
default rates.
(b) LECs who are otherwise required to file tariffs are required to
tariff rates no higher than the default transitional rates specified by
this subpart.
(1) With respect to interstate switched access services governed by
this subpart, LECs shall tariff rates for those services in their
federal tariffs. Except as expressly superseded below, LECs shall follow
the procedures specified in part 61 of this chapter when filing such
tariffs.
(2) With respect to Transitional Intrastate Access Services governed
by this subpart, LECs shall follow the procedures specified by relevant
state law when filing such tariffs, price lists or other instrument
(referred to collectively as ``tariffs'').
(c) Nothing in this section shall be construed to require a carrier
to file or maintain a tariff or to amend an existing tariff if it is not
otherwise required to do so under applicable law.
Sec. 51.907 Transition of price cap carrier access charges.
(a) Notwithstanding any other provision of the Commission's rules,
on December 29, 2011, a Price Cap Carrier shall cap the rates for all
interstate and intrastate rate elements for services contained in the
definitions of Interstate End Office Access Services, Tandem Switched
Transport Access Services, and Dedicated Transport Access Services. In
addition, a Price Cap Carrier shall also cap the rates for any
interstate and intrastate rate elements in the traffic sensitive
basket'' and the ``trunking basket'' as described in 47 CFR 61.42(d)(2)
and (3) to the extent that such rate elements are not contained in the
definitions of Interstate End Office Access Services, Tandem Switched
Transport Access Services, and Dedicated Transport Access Services.
Carriers will remove these services from price cap regulation in their
July 1, 2012 annual tariff filing.
(b) Step 1. Beginning July 1, 2012, notwithstanding any other
provision of the Commission's rules:
(1) Each Price Cap Carrier shall file tariffs, in accordance with
Sec. 51.905(b)(2), with the appropriate state regulatory authority,
that set forth the rates applicable to Transitional Intrastate Access
Service in each state in which it provides Transitional Intrastate
Access Service.
(2) Each Price Cap Carrier shall establish the rates for
Transitional Intrastate Access Service using the following methodology:
(i) Calculate total revenue from Transitional Intrastate Access
Service at the carrier's interstate access rates in effect on December
29, 2011, using Fiscal Year 2011 intrastate switched access demand for
each rate element.
(ii) Calculate total revenue from Transitional Intrastate Access
Service at the carrier's intrastate access rates in effect on December
29, 2011, using Fiscal Year 2011 intrastate switched access demand for
each rate element.
(iii) Calculate the Step 1 Access Revenue Reduction. The Step 1
Access Revenue Reduction is equal to one-half of the difference between
the amount calculated in paragraph (b)(2)(i) of this section and the
amount calculated in paragraph (b)(2)(ii) of this section.
(iv) A Price Cap Carrier may elect to establish rates for
Transitional Intrastate Access Service using its intrastate access rate
structure. Carriers using this option shall establish rates for
Transitional Intrastate Access Service such that Transitional Intrastate
Access Service revenue at the proposed rates is no greater than
Transitional Intrastate Access Service revenue at the intrastate rates
in effect as of December 29, 2011 less the Step 1 Access Revenue
Reduction, using Fiscal Year 2011 demand. Carriers electing to
[[Page 71]]
establish rates for Transitional Intrastate Access Service in this
manner shall notify the appropriate state regulatory authority of their
election in the filing required by Sec. 51.907(b)(1).
(v) A Price Cap Carrier may elect to apply its interstate access
rate structure and interstate rates to Transitional Intrastate Access
Service. In addition to applicable interstate access rates, the carrier
may, between July 1, 2012 and July 1, 2013, assess a transitional per-
minute charge on Transitional Intrastate Access Service end office
switching minutes (previously billed as intrastate access). The
transitional per-minute charge shall be no greater than the Step 1
Access Revenue Reduction divided by Fiscal Year 2011 Transitional
Intrastate Access Service end office switching minutes. Carriers
electing to establish rates for Transitional Intrastate Access Service
in this manner shall notify the appropriate state regulatory authority
of their election in the filing required by paragraph (b)(1) of this
section.
(vi) Except as provided in paragraph (b)(3) of this section, nothing
in this section obligates or allows a Price Cap Carrier that has
intrastate rates lower than its functionally equivalent interstate rates
to make any intrastate tariff filing or intrastate tariff revisions to
increase such rates.
(3) If a Price Cap Carrier must make an intrastate switched access
rate reduction pursuant to paragraph (b)(2) of this section, and that
Price Cap Carrier has an intrastate rate for a rate element that is
below the comparable interstate rate for that element, the Price Cap
Carrier shall:
(i) Increase the rate for any intrastate rate element that is below
the comparable interstate rate for that element to the interstate rate
no later than July 1, 2013;
(ii) Include any increases made pursuant to paragraph (b)(3)(i) of
this section in the calculation of its eligible recovery for 2012.
(c) Step 2. Beginning July 1, 2013, notwithstanding any other
provision of the Commission's rules:
(1) Transitional Intrastate Access Service rates shall be no higher
than the Price Cap Carrier's interstate access rates. Once the Price Cap
Carrier's Transitional Intrastate Access Service rates are equal to its
functionally equivalent interstate access rates, they shall be subject
to the same rate structure and all subsequent rate and rate structure
modifications. Except as provided in paragraph (c)(4) of this section,
nothing in this section obligates or allows a Price Cap Carrier that has
intrastate rates lower than its functionally equivalent interstate rates
to make any intrastate tariff filing or intrastate tariff revisions to
increase such rates.
(2) In cases where a Price Cap Carrier does not have intrastate
rates that permit it to determine composite intrastate End Office Access
Service rates, the carrier shall establish End Office Access Service
rates such that the ratio between its composite intrastate End Office
Access Service revenues and its total intrastate switched access
revenues may not exceed the ratio between its composite interstate End
Office Access Service revenues and its total interstate switched access
revenues.
(3) [Reserved]
(4) If a Price Cap Carrier made an intrastate switched access rate
reduction in 2012 pursuant to paragraph (b)(2) of this section, and that
Price Cap Carrier has an intrastate rate for a rate element that is
below the comparable interstate rate for that element, the Price Cap
Carrier shall:
(i) Increase the rate for any intrastate rate element that is below
the comparable interstate rate for that element to the interstate rate
on July 1, 2013; and
(ii) Include any increases made pursuant to paragraph (b)(4)(i) of
this section in the calculation of its eligible recovery for 2013.
(d) Step 3. Beginning July 1, 2014, notwithstanding any other
provision of the Commission's rules:
(1) A Price Cap Carrier shall establish separate originating and
terminating rate elements for all per-minute components within
interstate and intrastate End Office Access Service. For fixed charges,
the Price Cap Carrier shall divide the rate between originating and
terminating rate elements based on relative originating and terminating
end office switching minutes.
[[Page 72]]
If sufficient originating and terminating end office switching minute
data is not available, the carrier shall divide such charges equally
between originating and terminating elements.
(2) Each Price Cap Carrier shall establish rates for interstate or
intrastate terminating End Office Access Service using the following
methodology:
(i) Each Price Cap Carrier shall calculate the 2011 Baseline
Composite Terminating End Office Access Rate. The 2011 Baseline
Composite Terminating End Office Access Rate means the Composite
Terminating End Office Access Rate calculated using Fiscal Year 2011
demand and the End Office Access Service rates at the levels in effect
on December 29, 2011.
(ii) Each Price Cap Carrier shall calculate its 2014 Target
Composite Terminating End Office Access Rate. The 2014 Target Composite
Terminating End Office Access Rate means $0.0007 per minute plus two-
thirds of any difference between the 2011 Baseline Composite Terminating
End Office Access Rate and $0.0007 per minute.
(iii) Beginning July 1, 2014, no Price Cap Carrier's interstate or
intrastate Composite Terminating End Office Access Rate shall exceed its
2014 Target Composite Terminating End Office Access Rate. In the
alternative, any Price Cap Carrier may elect to implement a single per
minute rate element for terminating End Office Access Service no greater
than the 2014 Target Composite Terminating End Office Access Rate.
(iv) Nothing in this section obligates or allows a Price Cap Carrier
that has intrastate rates lower than its functionally equivalent
interstate rates to make any intrastate tariff filing or intrastate
tariff revisions increasing such rates.
(e) Step 4. Beginning July 1, 2015, notwithstanding any other
provision of the Commission's rules:
(1) Each Price Cap Carrier shall establish interstate or intrastate
rates for terminating End Office Access Service using the following
methodology:
(i) Each Price Cap Carrier shall calculate its 2015 Target Composite
Terminating End Office Access Rate. The 2015 Target Composite
Terminating End Office Access Rate means $0.0007 per minute plus one-
third of any difference between the 2011 Composite Terminating End
Office Access Rate and $0.0007 per minute.
(ii) Beginning July 1, 2015, no Price Cap Carrier's interstate or
intrastate Composite Terminating End Office Access Rate shall exceed its
2015 Target Composite Terminating End Office Access Rate. In the
alternative, any Price Cap Carrier may elect to implement a single per
minute rate element for terminating End Office Access Service no greater
than the 2015 Target Composite Terminating End Office Access Rate.
(2) Nothing in this section obligates or allows a Price Cap Carrier
that has intrastate rates lower than its functionally equivalent
interstate rates to make any intrastate tariff filing or intrastate
tariff revisions raising such rates.
(f) Step 5. Beginning July 1, 2016, notwithstanding any other
provision of the Commission's rules, each Price Cap Carrier shall
establish interstate and intrastate per minute terminating End Office
Access Service rates such that its Composite Terminating End Office
Access Service rate does not exceed $0.0007 per minute. Nothing in this
section obligates or allows a Price Cap Carrier that has intrastate
rates lower than its functionally equivalent interstate rates to make
any intrastate tariff filing or intrastate tariff revisions raising such
rates.
(g) Step 6. Beginning July 1, 2017, notwithstanding any other
provision of the Commission's rules:
(1) Each Price Cap Carrier shall, in accordance with a bill-and-keep
methodology, refile its interstate access tariffs and any state tariffs,
in accordance with Sec. 51.905(b)(2), removing any intercarrier charges
for terminating End Office Access Service.
(2) Each Price Cap Carrier shall establish, for interstate and
intrastate terminating traffic traversing a tandem switch that the
terminating carrier or its affiliates owns, Tandem-Switched Transport
Access Service rates no greater than $0.0007 per minute.
(3) Nothing in this section obligates or allows a Price Cap Carrier
that has
[[Page 73]]
intrastate rates lower than its functionally equivalent interstate rates
to make any intrastate tariff filing or intrastate tariff revisions
raising such rates.
(h) Step 7. Beginning July 1, 2018, notwithstanding any other
provision of the Commission's rules, each Price Cap carrier shall, in
accordance with bill-and-keep, as defined in Sec. 51.713, revise and
refile its interstate switched access tariffs and any state tariffs to
remove any intercarrier charges applicable to terminating tandem-
switched access service traversing a tandem switch that the terminating
carrier or its affiliate owns.
[76 FR 73856, Nov. 29, 2011, as amended at 77 FR 48452, Aug. 14, 2012]
Sec. 51.909 Transition of rate-of-return carrier access charges.
(a) Notwithstanding any other provision of the Commission's rules,
on December 29, 2011, a Rate-of-Return Carrier shall:
(1) Cap the rates for all rate elements for services contained in
the definitions of End Office Access Service, Tandem Switched Transport
Access Service, and Dedicated Transport Access Service, as well as all
other interstate switched access rate elements, in its interstate
switched access tariffs at the rate that was in effect on the December
29, 2011; and
(2) Cap, in accordance with Sec. 51.505(b)(2), the rates for rate
all elements in its intrastate switched access tariffs associated with
the provision of terminating End Office Access Service and terminating
Tandem-Switched Transport Access Service at the rates that were in
effect on the December 29, 2011,
(i) Using the terminating rates if specifically identified; or
(ii) Using the rate for the applicable rate element if the tariff
does not distinguish between originating and terminating.
(3) Except as provided in paragraph (b)(4) of this section, nothing
in this section obligates or allows a Rate-of-Return Carrier that has
intrastate rates lower than its functionally equivalent interstate rates
to make any intrastate tariff filing or intrastate tariff revisions
raising such rates.
(b) Step 1. Beginning July 1, 2012, notwithstanding any other
provision of the Commission's rules:
(1) Each Rate-of-Return Carrier shall file intrastate access tariff
provisions, in accordance with Sec. 51.505(b)(2), that set forth the
rates applicable to Transitional Intrastate Access Service in each state
in which it provides Transitional Intrastate Access Service.
(2) Each Rate-of-Return Carrier shall establish the rates for
Transitional Intrastate Access Service using the following methodology:
(i) Calculate total revenue from Transitional Intrastate Access
Service at the carrier's interstate access rates in effect on December
29, 2011, using Fiscal Year 2011 intrastate switched access demand for
each rate element.
(ii) Calculate total revenue from Transitional Intrastate Access
Service at the carrier's intrastate access rates in effect on December
29, 2011, using Fiscal Year 2011 intrastate switched access demand for
each rate element.
(iii) Calculate the Step 1 Access Revenue Reduction. The Step 1
Access Revenue Reduction is equal to one-half of the difference between
the amount calculated in (b)(2)(i) of this section and the amount
calculated in (b)(2)(ii) of this section.
(iv) A Rate-of-Return Carrier may elect to establish rates for
Transitional Intrastate Access Service using its intrastate access rate
structure. Carriers using this option shall establish rates for
Transitional Intrastate Access Service such that Transitional Intrastate
Access Service revenue at the proposed rates is no greater than
Transitional Intrastate Access Service revenue at the intrastate rates
in effect as of December 29, 2011 less the Step 1 Access Revenue
Reduction, using Fiscal Year 2011 intrastate switched access demand.
Carriers electing to establish rates for Transitional Intrastate Access
Service in this manner shall notify the appropriate state regulatory
authority of their election in the filing required by Sec.
51.907(b)(1).
(v) A Rate-of-Return Carrier may elect to apply its interstate
access rate structure and interstate rates to Transitional Intrastate
Access Service. In addition to applicable interstate access rates, the
carrier may, between July 1,
[[Page 74]]
2012 and July 1, 2013, assess a transitional per-minute charge on
Transitional Intrastate Access Service end office switching minutes
(previously billed as intrastate access). The transitional per-minute
charge shall be no greater than the Step 1 Access Revenue Reduction
divided by Fiscal Year 2011 Transitional Intrastate Access Service end
office switching minutes. Carriers electing to establish rates for
Transitional Intrastate Access Service in this manner shall notify the
appropriate state regulatory authority of their election in the filing
required by Sec. 51.907(b)(1).
(3) Except as provided in paragraph (b)(4) of this section, nothing
in this section obligates or allows a Rate-of-Return carrier that has
intrastate rates lower than its functionally equivalent interstate rates
to make any intrastate tariff filing or intrastate tariff revisions
raising such rates.
(4) If a Rate-of-Return Carrier must make an intrastate switched
access rate reduction pursuant to paragraph (b)(2) of this section, and
that Rate-of-Return Carrier has an intrastate rate for a rate element
that is below the comparable interstate rate for that element, the Rate-
of-Return Carrier shall:
(i) Increase the rate for any intrastate rate element that is below
the comparable interstate rate for that element to the interstate rate
no later than July 1, 2013;
(ii) Include any increases made pursuant to paragraph (b)(4)(i) of
this section in the calculation of its eligible recovery for 2012.
(c) Step 2. Beginning July 1, 2013, notwithstanding any other
provision of the Commission's rules:
(1) Transitional Intrastate Access Service rates shall be no higher
than the Rate-of-Return Carrier's interstate Terminating End Office
Access Service and Terminating Tandem-Switched Transport Access Service
rates and subject to the same rate structure and all subsequent rate and
rate structure modifications. Except as provided in paragraph (c)(2) of
this section, nothing in this section obligates or allows a Rate-of-
Return Carrier that has intrastate rates lower than its functionally
equivalent interstate rates to make any intrastate tariff filing or
intrastate tariff revisions to increase such rates.
(2) If a Rate-of-Return Carrier made an intrastate switched access
rate reduction in 2012 pursuant to paragraph (b)(2) of this section, and
that Rate-of-Return Carrier has an intrastate rate for a rate element
that is below the comparable interstate rate for that element, the Rate-
of-Return Carrier shall:
(i) Increase any intrastate rate element that is below the
comparable interstate rate to the interstate rate by July 1, 2013; and
(ii) Include any increases made pursuant to paragraph (c)(2)(i) of
this section in the calculation of its eligible recovery for 2013.
(d) Step 3. Beginning July 1, 2014, notwithstanding any other
provision of the Commission's rules:
(1) Notwithstanding the rate structure rules set forth in Sec.
69.106 of this chapter or anything else in the Commission's rules, a
Rate-of-Return Carrier shall establish separate originating and
terminating interstate and intrastate rate elements for all components
within interstate End Office Access Service. For fixed charges, the
Rate-of-Return Carrier shall divide the amount based on relative
originating and terminating end office switching minutes. If sufficient
originating and terminating end office switching minute data is not
available, the carrier shall divide such charges equally between
originating and terminating elements.
(2) Nothing in this Step shall affect Tandem-Switched Transport
Access Service or Dedicated Transport Access Service.
(3) Each Rate-of-Return Carrier shall establish rates for interstate
and intrastate terminating End Office Access Service using the following
methodology:
(i) Each Rate-of-Return Carrier shall calculate the 2011 Baseline
Composite Terminating End Office Access Rate. The 2011 Baseline
Composite Terminating End Office Access Rate means the Composite
Terminating End Office Access Rate calculated using Fiscal Year 2011
interstate demand and the interstate End Office Access Service rates at
the levels in effect on December 29, 2011.
[[Page 75]]
(ii) Each Rate-of-Return Carrier shall calculate its 2014 interstate
Target Composite Terminating End Office Access Rate. The 2014 interstate
Target Composite Terminating End Office Access Rate means $0.005 per
minute plus two-thirds of any difference between the 2011 Baseline
Composite Terminating End Office Access Rate. and $0.005 per minute.
(iii) Beginning July 1, 2014, no Rate-of-Return Carrier's interstate
or intrastate Composite Terminating End Office Access Rate shall exceed
its 2014 interstate Target Composite Terminating End Office Access Rate.
In the alternative, any Rate-of-Return Carrier may elect to implement a
single per minute rate element for terminating End Office Access Service
no greater than the 2014 interstate Target Composite Terminating End
Office Access Rate.
(4) Nothing in this section obligates or allows a Rate-of-Return
Carrier that has intrastate rates lower than its functionally equivalent
interstate rates to make any intrastate tariff filing or intrastate
tariff revisions raising such rates.
(e) Step 4. Beginning July 1, 2015, notwithstanding any other
provision of the Commission's rules:
(1) Each Rate-of-Return Carrier shall establish rates for interstate
and intrastate terminating End Office Access Service using the following
methodology:
(i) Each Rate-of-Return Carrier shall calculate its 2015 interstate
Target Composite Terminating End Office Access Rate. The 2015 interstate
Target Composite Terminating End Office Access Rate means $0.005 per
minute plus one-third of any difference between the 2011 Baseline
Composite Terminating End Office Access Rate and $0.005 per minute.
(ii) Beginning July 1, 2015, no Rate-of-Return Carrier's interstate
or intrastate Composite Terminating End Office Access Rate shall exceed
its 2015 Target Composite Terminating End Office Access Rate. In the
alternative, any Rate-of-Return Carrier may elect to implement a single
per minute rate element for terminating End Office Access Service no
greater than the 2015 interstate Target Composite Terminating End Office
Access Rate.
(2) [Reserved]
(f) Step 5. Beginning July 1, 2016, notwithstanding any other
provision of the Commission's rules, each Rate-of-Return Carrier shall
establish interstate and intrastate per minute terminating End Office
Access Service rates such that its Composite Terminating End Office
Access Service rate does not exceed $0.005 per minute. Nothing in this
section obligates or allows a Rate-of-Return Carrier that has intrastate
rates lower than its functionally equivalent interstate rates to make
any intrastate tariff filing or intrastate tariff revisions raising such
rates.
(g) Step 6. Beginning July 1, 2017, notwithstanding any other
provision of the Commission's rules:
(1) Each Rate-of-Return Carrier shall establish rates for
terminating End Office Access Service using the following methodology:
(i) Each Rate-of-Return Carrier shall calculate its 2017 interstate
Target Composite Terminating End Office Access Rate. The 2017 interstate
Target Composite Terminating End Office Access Rate means $0.0007 per
minute plus two-thirds of any difference between that carrier's
Terminating End Office Access Service Rate as of July 1, 2016 and
$0.0007 per minute.
(ii) Beginning July 1, 2017, no Rate-of-Return Carrier's interstate
or intrastate Composite Terminating End Office Access Rate shall exceed
its 2017 interstate Target Composite Terminating End Office Access Rate.
In the alternative, any Rate-of-Return Carrier may elect to implement a
single per minute rate element for terminating End Office Access Service
no greater than the 2017 interstate Target Composite Terminating End
Office Access Rate.
(2) [Reserved]
(h) Step 7. Beginning July 1, 2018, notwithstanding any other
provision of the Commission's rules:
(1) Each Rate-of-Return Carrier shall establish rates for
terminating End Office Access Service using the following methodology:
(i) Each Rate-of-Return Carrier shall calculate its 2018 interstate
Target
[[Page 76]]
Composite Terminating End Office Access Rate. The 2018 interstate Target
Composite Terminating End Office Access Rate means $0.0007 per minute
plus one-third of any difference between that carrier's Terminating End
Office Access Service Rate as of July 1, 2016 and $0.0007 per minute.
(ii) Beginning July 1, 2018, no Rate-of-Return Carrier's interstate
or intrastate Composite Terminating End Office Access Rate shall exceed
its 2018 interstate Target Composite Terminating End Office Access Rate.
In the alternative, any Rate-of-Return Carrier may elect to implement a
single per minute rate element for terminating End Office Access Service
no greater than the 2018 interstate Target Composite Terminating End
Office Access Rate.
(2) [Reserved]
(i) Step 8. Beginning July 1, 2019, notwithstanding any other
provision of the Commission's rules, each Rate-of-Return Carrier shall
establish interstate and intrastate rates for terminating End Office
Access Service that do not exceed $0.0007 per minute.
(j) Step 9. Beginning July 1, 2020, notwithstanding any other
provision of the Commission's rules, each Rate-of-Return Carrier shall,
in accordance with a bill-and-keep methodology, revise and refile its
federal access tariffs and any state tariffs to remove any intercarrier
charges for terminating End Office Access Service.
(k) As set forth in FCC 11-161, states will facilitate
implementation of changes to intrastate access rates to ensure
compliance with the Order. Nothing in this section shall alter the
authority of a state to monitor and oversee filing of intrastate
tariffs.
[76 FR 73856, Nov. 29, 2011, as amended at 77 FR 48452, Aug. 14, 2012]
Sec. 51.911 Access reciprocal compensation rates for competitive LECs.
(a) Caps on Access Reciprocal Compensation and switched access
rates. Notwithstanding any other provision of the Commission's rules:
(1) In the case of Competitive LECs operating in an area served by a
Price Cap Carrier, no such Competitive LEC may increase the rate for any
originating or terminating intrastate switched access service above the
rate for such service in effect on December 29, 2011.
(2) In the case of Competitive LEC operating in an area served by an
incumbent local exchange carrier that is a Rate-of-Return Carrier or
Competitive LECs that are subject to the rural exemption in Sec.
61.26(e) of this chapter, no such Competitive LEC may increase the rate
for any originating or terminating intrastate switched access service
above the rate for such service in effect on December 29, 2011, with the
exception of intrastate originating access service. For such Competitive
LECs, intrastate originating access service subject to this subpart
shall remain subject to the same state rate regulation in effect
December 31, 2011, as may be modified by the state thereafter.
(b) Except as provided in paragraph (b)(7) of this section,
beginning July 3, 2012, notwithstanding any other provision of the
Commission's rules, each Competitive LEC that has tariffs on file with
state regulatory authorities shall file intrastate access tariff
provisions, in accordance with Sec. 51.505(b)(2), that set forth the
rates applicable to Transitional Intrastate Access Service in each state
in which it provides Transitional Intrastate Access Service. Each
Competitive Local Exchange Carrier shall establish the rates for
Transitional Intrastate Access Service using the following methodology.
(1) Calculate total revenue from Transitional Intrastate Access
Service at the carrier's interstate access rates in effect on December
29, 2011, using Fiscal Year 2011 intrastate switched access demand for
each rate element.
(2) Calculate total revenue from Transitional Intrastate Access
Service at the carrier's intrastate access rates in effect on December
29, 2011, using Fiscal Year 2011 intrastate switched access demand for
each rate element.
(3) Calculate the Step 1 Access Revenue Reduction. The Step 1 Access
Revenue Reduction is equal to one-half of the difference between the
amount calculated in (b)(1) of this section and the amount calculated in
(b)(2) of this section.
(4) A Competitive Local Exchange Carrier may elect to establish
rates for
[[Page 77]]
Transitional Intrastate Access Service using its intrastate access rate
structure. Carriers using this option shall establish rates for
Transitional Intrastate Access Service such that Transitional Intrastate
Access Service revenue at the proposed rates is no greater than
Transitional Intrastate Access Service revenue at the intrastate rates
in effect as of December 29, 2011 less the Step 1 Access Revenue
Reduction, using Fiscal year 2011 intrastate switched access demand.
(5) In the alternative, a Competitive Local Exchange Carrier may
elect to apply its interstate access rate structure and interstate rates
to Transitional Intrastate Access Service. In addition to applicable
interstate access rates, the carrier may assess a transitional per-
minute charge on Transitional Intrastate Access Service end office
switching minutes (previously billed as intrastate access). The
transitional charge shall be no greater than the Step 1 Access Revenue
Reduction divided by Fiscal year 2011 intrastate switched access demand
(6) Except as provided in paragraph (b)(7) of this section, nothing
in this section obligates or allows a Competitive LEC that has
intrastate rates lower than its functionally equivalent interstate rates
to make any intrastate tariff filing or intrastate tariff revisions
raising such rates.
(7) If a Competitive LEC must make an intrastate switched access
rate reduction pursuant to paragraph (b) of this section, and that
Competitive LEC has an intrastate rate for a rate element that is below
the comparable interstate rate for that element, the Competitive LEC may
increase the rate for any intrastate rate element that is below the
comparable interstate rate for that element to the interstate rate no
later than July 1, 2013;
(c) Beginning July 1, 2013, notwithstanding any other provision of
the Commission's rules, all Competitive Local Exchange Carrier Access
Reciprocal Compensation rates for switched exchange access services
subject to this subpart shall be no higher than the Access Reciprocal
Compensation rates charged by the competing incumbent local exchange
carrier, in accordance with the same procedures specified in Sec. 61.26
of this chapter.
[76 FR 73856, Nov. 29, 2011, as amended at 77 FR 48453, Aug. 14, 2012]
Sec. 51.913 Transition for VoIP-PSTN traffic.
(a)(1) Terminating Access Reciprocal Compensation subject to this
subpart exchanged between a local exchange carrier and another
telecommunications carrier in Time Division Multiplexing (TDM) format
that originates and/or terminates in IP format shall be subject to a
rate equal to the relevant interstate terminating access charges
specified by this subpart. Interstate originating Access Reciprocal
Compensation subject to this subpart exchanged between a local exchange
carrier and another telecommunications carrier in Time Division
Multiplexing (TDM) format that originates and/or terminates in IP format
shall be subject to a rate equal to the relevant interstate originating
access charges specified by this subpart.
(2) Until June 30, 2014, intrastate originating Access Reciprocal
Compensation subject to this subpart exchanged between a local exchange
carrier and another telecommunications carrier in Time Division
Multiplexing (TDM) format that originates and/or terminates in IP format
shall be subject to a rate equal to the relevant intrastate originating
access charges specified by this subpart. Effective July 1, 2014,
originating Access Reciprocal Compensation subject to this subpart
exchanged between a local exchange carrier and another
telecommunications carrier in Time Division Multiplexing (TDM) format
that originates and/or terminates in IP format shall be subject to a
rate equal to the relevant interstate originating access charges
specified by this subpart.
(3) Telecommunications traffic originates and/or terminates in IP
format if it originates from and/or terminates to an end-user customer
of a service that requires Internet protocol-compatible customer
premises equipment.
(b) Notwithstanding any other provision of the Commission's rules, a
local exchange carrier shall be entitled to
[[Page 78]]
assess and collect the full Access Reciprocal Compensation charges
prescribed by this subpart that are set forth in a local exchange
carrier's interstate or intrastate tariff for the access services
defined in Sec. 51.903 regardless of whether the local exchange carrier
itself delivers such traffic to the called party's premises or delivers
the call to the called party's premises via contractual or other
arrangements with an affiliated or unaffiliated provider of
interconnected VoIP service, as defined in 47 U.S.C. 153(25), or a non-
interconnected VoIP service, as defined in 47 U.S.C. 153(36), that does
not itself seek to collect Access Reciprocal Compensation charges
prescribed by this subpart for that traffic. This rule does not permit a
local exchange carrier to charge for functions not performed by the
local exchange carrier itself or the affiliated or unaffiliated provider
of interconnected VoIP service or non-interconnected VoIP service. For
purposes of this provision, functions provided by a LEC as part of
transmitting telecommunications between designated points using, in
whole or in part, technology other than TMD transmission in a manner
that is comparable to a service offered by a local exchange carrier
constitutes the functional equivalent of the incumbent local exchange
carrier access service.
[76 FR 73856, Nov. 29, 2011, as amended at 77 FR 31536, May 29, 2012]
(a) Access Reciprocal Compensation subject to this subpart exchanged
between a local exchange carrier and another telecommunications carrier
in Time Division Multiplexing (TDM) format that originates and/or
terminates in IP format shall be subject to a rate equal to the relevant
interstate access charges specified by this subpart. Telecommunications
traffic originates and/or terminates in IP format if it originates from
and/or terminates to an end-user customer of a service that requires
Internet protocol-compatible customer premises equipment.
(b) Notwithstanding any other provision of the Commission's rules, a
local exchange carrier shall be entitled to assess and collect the full
Access Reciprocal Compensation charges prescribed by this subpart that
are set forth in a local exchange carrier's interstate or intrastate
tariff for the access services defined in Sec. 51.903 regardless of
whether the local exchange carrier itself delivers such traffic to the
called party's premises or delivers the call to the called party's
premises via contractual or other arrangements with an affiliated or
unaffiliated provider of interconnected VoIP service, as defined in 47
U.S.C. 153(25), or a non-interconnected VoIP service, as defined in 47
U.S.C. 153(36), that does not itself seek to collect Access Reciprocal
Compensation charges prescribed by this subpart for that traffic. This
rule does not permit a local exchange carrier to charge for functions
not performed by the local exchange carrier itself or the affiliated or
unaffiliated provider of interconnected VoIP service or non-
interconnected VoIP service. For purposes of this provision, functions
provided by a LEC as part of transmitting telecommunications between
designated points using, in whole or in part, technology other than TDM
transmission in a manner that is comparable to a service offered by a
local exchange carrier constitutes the functional equivalent of the
incumbent local exchange carrier access service.
Sec. 51.915 Recovery mechanism for price cap carriers.
(a) Scope. This section sets forth the extent to which Price Cap
Carriers may recover certain revenues, through the recovery mechanism
outlined below, to implement reforms adopted in FCC 11-161 and as
required by Sec. 20.11(b) of this chapter, and Sec. Sec. 51.705 and
51.907.
(b) Definitions. As used in this section and Sec. 51.917, the
following terms mean:
(1) CALLS Study Area. A CALLS Study Area means a Price Cap Carrier
study area that participated in the CALLS plan at its inception. See
Access Charge Reform, Price Cap Performance Review for Local Exchange
Carriers, Low-Volume Long-Distance Users, Federal-State Joint Board on
Universal Service, Sixth Report and Order in CC Docket Nos. 96-262 and
94-1, Report and Order in CC Docket No. 99-249, Eleventh Report and
Order in CC Docket No. 96-45, 15 FCC Rcd 12962 (2000).
(2) CALLS Study Area Base Factor. The CALLS Study Area Base Factor
is equal to ninety (90) percent.
[[Page 79]]
(3) CMRS Net Reciprocal Compensation Revenues. CMRS Net Reciprocal
Compensation Revenues means the reduction in net reciprocal compensation
revenues required by Sec. 20.11 of this chapter associated with CMRS
traffic as described in Sec. 51.701(b)(2), which is equal to its Fiscal
Year 2011 net reciprocal compensation revenues from CMRS carriers.
(4) Expected Revenues for Access Recovery Charges. Expected Revenues
for Access Recovery Charges are calculated using the tariffed Access
Recovery Charge rate for each class of service and the forecast demand
for each class of service.
(5) Initial Composite Terminating End Office Access Rate. Initial
Composite Terminating End Office Access Rate means Fiscal Year 2011
terminating interstate End Office Access Service revenue divided by
Fiscal Year 2011 terminating interstate end office switching minutes.
(6) Lifeline Customer. A Lifeline Customer is a residential lifeline
subscriber as defined by Sec. 54.400(a) of this chapter that does not
pay a Residential and/or Single-Line Business End User Common Line
Charge.
(7) Net Reciprocal Compensation. Net Reciprocal Compensation means
the difference between a carrier's reciprocal compensation revenues from
non-access traffic less its reciprocal compensation payments for non-
access traffic during a stated period of time. For purposes of the
calculations made under Sec. Sec. 51.915 and 51.917, the term does not
include reciprocal compensation revenues for non-access traffic
exchanged between Local Exchange Carriers and CMRS providers; recovery
for such traffic is addressed separately in these sections.
(8) Non-CALLS Study Area. Non-CALLS Study Area means a Price Cap
Carrier study area that did not participate in the CALLS plan at its
inception.
(9) Non-CALLS Study Area Base Factor. The Non-CALLS Study Area Base
Factor is equal to one hundred (100) percent for five (5) years
beginning July 1, 2012. Beginning July 1, 2017, the Non-CALLS Price Cap
Carrier Base Factor will be equal to ninety (90) percent.
(10) Price Cap Carrier Traffic Demand Factor. The Price Cap Carrier
Traffic Demand Factor, as used in calculating eligible recovery, is
equal to ninety (90) percent for the one-year period beginning July 1,
2012. It is reduced by ten (10) percent of its previous value in each
subsequent annual tariff filing.
(11) Rate Ceiling Component Charges. The Rate Ceiling Component
Charges consists of the federal end user common line charge and the
Access Recovery Charge; the flat rate for residential local service
(sometimes know as the ``1FR'' or ``R1'' rate), mandatory extended area
service charges, and state subscriber line charges; per-line state high
cost and/or state access replacement universal service contributions,
state E911 charges, and state TRS charges.
(12) Residential Rate Ceiling. The Residential Rate Ceiling, which
consists of the total of the Rate Ceiling Component Charges, is set at
$30 per month. The Residential Rate Ceiling will be the higher of the
rate in effect on January 1, 2012, or the rate in effect on January 1 in
any subsequent year.
(13) True-up Revenues for Access Recovery Charge. True-up revenues
for Access Recovery Charge are equal to Expected Access Recovery Charge
Revenues minus ((projected demand minus actual realized demand for
Access Recovery Charges) times the tariffed Access Recovery Charge).
This calculation shall be made separately for each class of service and
shall be adjusted to reflect any changes in tariffed rates for the
Access Recovery Charge. Realized demand is the demand for which payment
has been received, or has been made, as appropriate, by the time the
true-up is made.
(c) 2011 Price Cap Carrier Base Period Revenue. 2011 Price Cap
Carrier Base Period Revenue is equal to the sum of the following three
components:
(1) Terminating interstate end office switched access revenues and
interstate Tandem-Switched Transport Access Service revenues for Fiscal
Year 2011 received by March 31, 2012;
(2) Fiscal Year 2011 revenues from Transitional Intrastate Access
Service received by March 31, 2012; and
(3) Fiscal Year 2011 reciprocal compensation revenues received by
March
[[Page 80]]
31, 2012, less fiscal year 2011 reciprocal compensation payments made by
March 31, 2012.
(d) Eligible recovery for Price Cap Carriers. (1) Notwithstanding
any other provision of the Commission's rules, a Price Cap Carrier may
recover the amounts specified in this paragraph through the mechanisms
described in paragraphs (e) and (f) of this section.
(i) Beginning July 1, 2012, a Price Cap Carrier's eligible recovery
will be equal to the CALLS Study Area Base Factor and/or the Non-CALLS
Study Area Base Factor, as applicable, multiplied by the sum of the
following three components:
(A) The amount of the reduction in Transitional Intrastate Access
Service revenues determined pursuant to Sec. 51.907(b)(2) multiplied by
the Price Cap Carrier Traffic Demand Factor;
(B) CMRS Net Reciprocal Compensation Revenues multiplied by the
Price Cap Carrier Traffic Demand Factor; and
(C) A Price Cap Carrier's reductions in Fiscal Year 2011 net
reciprocal compensation revenues resulting from rate reductions required
by Sec. 51.705, other than those associated with CMRS traffic as
described in Sec. 51.701(b)(2), which may be calculated in one of the
following ways:
(1) Calculate the reduction in Fiscal Year 2011 net reciprocal
compensation revenue as a result of rate reductions required by Sec.
51.705 using Fiscal Year 2011 reciprocal compensation demand, and then
multiply by the Price Cap Carrier Traffic Demand Factor;
(2) By using a composite reciprocal compensation rate as follows:
(i) Establish a composite reciprocal compensation rate for its
Fiscal Year 2011 reciprocal compensation receipts and its Fiscal Year
2011 reciprocal compensation payments by dividing its Fiscal Year 2011
reciprocal compensation receipts and payments by its respective Fiscal
Year 2011 demand excluding demand for traffic exchanged pursuant to a
bill-and-keep arrangement;
(ii) Calculate the difference between each of the composite
reciprocal compensation rates and the target reciprocal compensation
rate set forth in Sec. 51.705 for the year beginning July 1, 2012
multiply by the appropriate Fiscal Year 2011 demand, and then multiply
by the Price Cap Carrier Traffic Demand Factor; or
(3) For the purpose of establishing its recovery for net reciprocal
compensation, a Price Cap Carrier may elect to forgo this step and
receive no recovery for reductions in net reciprocal compensation. If a
carrier elects this option, it may not change its election at a later
date.
(ii) Beginning July 1, 2013, a Price Cap Carrier's eligible recovery
will be equal to the CALLS Study Area Base Factor and/or the Non-CALLS
Study Area Base Factor, as applicable, multiplied by the sum of the
following three components:
(A) The cumulative amount of the reduction in Transitional
Intrastate Access Service revenues determined pursuant to Sec.
51.907(b)(2) and (c) multiplied by the Price Cap Carrier Traffic Demand
Factor; and
(B) CMRS Net Reciprocal Compensation Revenues multiplied by the
Price Cap Carrier Traffic Demand Factor; and
(C) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011
net reciprocal compensation revenues other than those associated with
CMRS traffic as described in Sec. 51.701(b)(2) resulting from rate
reductions required by Sec. 51.705 may be calculated in one of the
following ways:
(1) Calculate the cumulative reduction in Fiscal Year 2011 net
reciprocal compensation revenue as a result of rate reductions required
by Sec. 51.705 using Fiscal Year 2011 reciprocal compensation demand
and then multiply by the Price Cap Carrier Traffic Demand Factor;
(2) By using a composite reciprocal compensation rate as follows:
(i) Establish a composite reciprocal compensation rate for its
Fiscal Year 2011 reciprocal compensation receipts and its Fiscal Year
2011 reciprocal compensation payments by dividing its Fiscal Year 2011
reciprocal compensation receipts and payments by its respective Fiscal
Year 2011 demand excluding demand for traffic exchanged pursuant to a
bill-and-keep arrangement;
[[Page 81]]
(ii) Calculate the difference between each of the composite
reciprocal compensation rates and the target reciprocal compensation
rate set forth in Sec. 51.705 for the year beginning July 1, 2013,
using the appropriate Fiscal Year 2011 demand, and then multiply by the
Price Cap Carrier Traffic Demand Factor; or
(3) For the purpose of establishing its recovery for net reciprocal
compensation, a Price Cap Carrier may elect to forgo this step and
receive no recovery for reductions in net reciprocal compensation. If a
carrier elects this option, it may not change its election at a later
date.
(iii) Beginning July 1, 2014, a Price Cap Carrier's eligible
recovery will be equal to the CALLS Study Area Base Factor and/or the
Non-CALLS Study Area Base Factor, as applicable, multiplied by the sum
of the amounts in paragraphs (d)(1)(iii)(A) through (d)(1)(iii)(E), of
this section, and then adding the amount in paragraph (d)(1)(iii)(F) of
this section to that amount:
(A) The amount of the reduction in Transitional Intrastate Access
Service revenues determined pursuant to Sec. 51.907(b)(2) and (c)
multiplied by the Price Cap Carrier Traffic Demand Factor; and
(B) The reduction in interstate switched access revenues equal to
the difference between the Initial Composite Terminating End Office
Access Rate and the 2014 Target Composite Terminating End Office Access
Rate determined pursuant to Sec. 51.907(d) using 2011 terminating
interstate end office switching minutes, and then multiply by the Price
Cap Carrier Traffic Demand Factor;
(C) If the 2014 Intrastate Composite Terminating End Office Access
Rate is higher than the 2014 Target Composite Terminating End Office
Access Rate, the reduction in revenues equal to the difference between
the intrastate 2014 Composite Terminating End Office Access Rate and the
intrastate 2014 Target Composite Terminating End Office Access Rate
determined pursuant to Sec. 51.907(d) using Fiscal Year 2011
terminating intrastate end office switching minutes, and then multiply
by the Price Cap Carrier Traffic Demand Factor;
(D) CMRS Net Reciprocal Compensation Revenues multiplied by the
Price Cap Carrier Traffic Demand Factor; and
(E) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011
net reciprocal compensation revenues other than those associated with
CMRS traffic as described in Sec. 51.701(b)(2) resulting from rate
reductions required by Sec. 51.705 may be calculated in one of the
following ways:
(1) Calculate the cumulative reduction in Fiscal Year 2011 net
reciprocal compensation revenue as a result of rate reductions required
by Sec. 51.705 using Fiscal Year 2011 reciprocal compensation demand,
and then multiply by the Price Cap Carrier Traffic Demand Factor;
(2) By using a composite reciprocal compensation rate as follows:
(i) Establish a composite reciprocal compensation rate for its
Fiscal Year 2011 reciprocal compensation receipts and its Fiscal Year
2011 reciprocal compensation payments by dividing its Fiscal Year 2011
reciprocal compensation receipts and payments by its respective Fiscal
Year 2011 demand excluding demand for traffic exchanged pursuant to a
bill-and-keep arrangement;
(ii) Calculate the difference between each of the composite
reciprocal compensation rates and the target reciprocal compensation
rate set forth in Sec. 51.705 for the year beginning July 1, 2014,
using the appropriate Fiscal Year 2011 demand, and then multiply by the
Price Cap Carrier Traffic Demand Factor; or
(3) For the purpose of establishing its recovery for net reciprocal
compensation, a Price Cap Carrier may elect to forgo this step and
receive no recovery for reductions in net reciprocal compensation. If a
carrier elects this option, it may not change its election at a later
date.
(F) An amount equal to True-up Revenues for Access Recovery Charges
less Expected Revenues for Access Recovery Charges for the year
beginning July 1, 2012.
(iv) Beginning July 1, 2015, a Price Cap Carrier's eligible recovery
will be equal to the CALLS Study Area Base
[[Page 82]]
Factor and/or the Non-CALLS Study Area Base Factor, as applicable,
multiplied by the sum of the amounts in paragraphs (d)(1)(iv)(A) through
(d)(1)(iv)(E) of this section and then adding the amount in paragraph
(d)(1)(iv)(F) of this section to that amount:
(A) The amount of the reduction in Transitional Intrastate Access
Service revenues determined pursuant to Sec. 51.907(b)(2) and (c)
multiplied by the Price Cap Carrier Traffic Demand Factor;
(B) The reduction in interstate switched access revenues equal to
the difference between the Initial Composite Terminating End Office
Access Rate and the 2015 Target Composite Terminating End Office Access
Rate determined pursuant to Sec. 51.907(e) using Fiscal Year 2011
terminating interstate end office switching minutes, and then multiply
by the Price Cap Carrier Traffic Demand Factor;
(C) If the 2014 Intrastate Composite Terminating End Office Access
Rate is higher than the 2015 Target Composite Terminating End Office
Access Rate, the reduction in intrastate switched access revenues equal
to the difference between the intrastate 2014 Composite Terminating End
Office Access Rate and the 2015 Target Composite Terminating End Office
Access Rate determined pursuant to Sec. 51.907(e) using Fiscal Year
2011 terminating intrastate end office switching minutes, and then
multiply by the Price Cap Carrier Traffic Demand Factor; and
(D) CMRS Net Reciprocal Compensation Revenues multiplied by the
Price Cap Carrier Traffic Demand Factor;
(E) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011
net reciprocal compensation revenues other than those associated with
CMRS traffic as described in Sec. 51.701(b)(2) resulting from rate
reductions required by Sec. 51.705 may be calculated in one of the
following ways:
(1) Calculate the cumulative reduction in Fiscal Year 2011 net
reciprocal compensation revenue as a result of rate reductions required
by Sec. 51.705 using Fiscal Year 2011 reciprocal compensation demand,
and then multiply by the Price Cap Carrier Traffic Demand Factor;
(2) By using a composite reciprocal compensation rate as follows:
(i) Establish a composite reciprocal compensation rate for its
Fiscal Year 2011 reciprocal compensation receipts and its Fiscal Year
2011 reciprocal compensation payments by dividing its Fiscal Year 2011
reciprocal compensation receipts and payments by its respective Fiscal
Year 2011 demand excluding demand for traffic exchanged pursuant to a
bill-and-keep arrangement;
(ii) Calculate the difference between each of the composite
reciprocal compensation rates and the target reciprocal compensation
rate set forth in Sec. 51.705 for the year beginning July 1, 2015,
using the appropriate Fiscal Year 2011 demand, and then multiply by the
Price Cap Carrier Traffic Demand Factor; or
(3) For the purpose of establishing its recovery for net reciprocal
compensation, a Price Cap Carrier may elect to forgo this step and
receive no recovery for reductions in net reciprocal compensation. If a
carrier elects this option, it may not change its election at a later
date.
(F) An amount equal to True-up Revenues for Access Recovery Charges
less Expected Revenues for Access Recovery Charges for the year
beginning July 1, 2013.
(v) Beginning July 1, 2016, a Price Cap Carrier's eligible recovery
will be equal to the CALLS Study Area Base Factor and/or the Non-CALLS
Study Area Base Factor, as applicable, multiplied by the sum of the
amounts in paragraphs (d)(1)(v)(A) through (d)(1)(v)(E), of this section
and then adding the amount in paragraph (d)(1)(v)(F) of this section to
that amount:
(A) The amount of the reduction in Transitional Intrastate Access
Service revenues determined pursuant to Sec. 51.907(b)(2) and (c)
multiplied by the Price Cap Carrier Traffic Demand Factor;
(B) The reduction in interstate switched access revenues equal to
the difference between the Initial Composite Terminating End Office
Access Rate and $0.0007 determined pursuant to Sec. 51.907(f) using
Fiscal Year 2011 terminating interstate end office switching minutes,
and then multiply by the
[[Page 83]]
Price Cap Carrier Traffic Demand Factor;
(C) If the 2014 Intrastate Composite Terminating End Office Access
Rate is higher than $0.0007, the reduction in revenues equal to the
difference between the intrastate 2014 Composite Terminating End Office
Access Rate and $0.0007 determined pursuant to Sec. 51.907(f) using
Fiscal Year 2011 terminating intrastate end office minutes, and then
multiply by the Price Cap Carrier Traffic Demand Factor;
(D) CMRS Net Reciprocal Compensation Revenues multiplied by the
Price Cap Carrier Traffic Demand Factor;
(E) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011
net reciprocal compensation revenues other than those associated with
CMRS traffic as described in Sec. 51.701(b)(2) resulting from rate
reductions required by Sec. 51.705 may be calculated in one of the
following ways:
(1) Calculate the cumulative reduction in Fiscal Year 2011 net
reciprocal compensation revenue as a result of rate reductions required
by Sec. 51.705 using Fiscal Year 2011 reciprocal compensation demand,
and then multiply by the Price Cap Carrier Traffic Demand Factor;
(2) By using a composite reciprocal compensation rate as follows:
(i) Establish a composite reciprocal compensation rate for its
Fiscal Year 2011 reciprocal compensation receipts and its Fiscal Year
2011 reciprocal compensation payments by dividing its Fiscal Year 2011
reciprocal compensation receipts and payments by its respective Fiscal
Year 2011 demand excluding demand for traffic exchanged pursuant to a
bill-and-keep arrangement;
(ii) Calculate the difference between each of the composite
reciprocal compensation rates and the target reciprocal compensation
rate set forth in Sec. 51.705 for the year beginning July 1, 2016,
using the appropriate Fiscal Year 2011 demand, and then multiply by the
Price Cap Carrier Traffic Demand Factor; or
(3) For the purpose of establishing its recovery for net reciprocal
compensation, a Price Cap Carrier may elect to forgo this step and
receive no recovery for reductions in net reciprocal compensation. If a
carrier elects this option, it may not change its election at a later
date.
(F) An amount equal to True-up Revenues for Access Recovery Charges
less Expected Revenues for Access Recovery Charges for the year
beginning July 1, 2014.
(vi) Beginning July 1, 2017, a Price Cap Carrier's eligible recovery
will be equal to ninety (90) percent of the sum of the amounts in
paragraphs (d)(1)(vi) through (d)(1)(vi)(F) of this section, and then
adding the amount in paragraph (d)(1)(vi)(G) f this section to that
amount:
(A) The amount of the reduction in Transitional Intrastate Access
Service revenues determined pursuant to Sec. 51.907(b)(2) and (c)
multiplied by the Price Cap Carrier Traffic Demand Factor; and
(B) The reduction in interstate switched access revenues equal to
the Initial Composite terminating End Office Access Rate using Fiscal
Year 2011 terminating interstate end office switching minutes, and then
multiply by the Price Cap Carrier Traffic Demand Factor;
(C) The reduction in revenues equal to the intrastate 2014 Composite
terminating End Office Access Rate using Fiscal Year 2011 terminating
intrastate end office switching minutes, and then multiply by the Price
Cap Carrier Traffic Demand Factor;
(D) The reduction in revenues resulting from reducing the
terminating Tandem-Switched Transport Access Service rate to $0.0007
pursuant to Sec. 51.907(g)(2) using Fiscal Year 2011 terminating
tandem-switched minutes, and then multiply by the Price Cap Carrier
Traffic Demand Factor;
(E) CMRS Net Reciprocal Compensation Revenues multiplied by the
Price Cap Carrier Traffic Demand Factor; and
(F) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011
net reciprocal compensation revenues other than those associated with
CMRS traffic as described in Sec. 51.701(b)(2) resulting from rate
reductions required by Sec. 51.705 may be calculated in one of the
following ways:
(1) Calculate the cumulative reduction in Fiscal Year 2011 net
reciprocal compensation revenue as a result of
[[Page 84]]
rate reductions required by Sec. 51.705 using Fiscal Year 2011
reciprocal compensation demand, and then multiply by the Price Cap
Carrier Traffic Demand Factor;
(2) By using a composite reciprocal compensation rate as follows:
(i) Establish a composite reciprocal compensation rate for its
Fiscal Year 2011 reciprocal compensation receipts and its Fiscal Year
2011 reciprocal compensation payments by dividing its Fiscal Year 2011
reciprocal compensation receipts and payments by its respective Fiscal
Year 2011 demand excluding demand for traffic exchanged pursuant to a
bill-and-keep arrangement;
(ii) Calculate the difference between each of the composite
reciprocal compensation rates and the target reciprocal compensation
rate set forth in Sec. 51.705 for the year beginning July 1, 2017,
using the appropriate Fiscal Year 2011 demand, and then multiply by the
Price Cap Carrier Traffic Demand Factor; or
(3) For the purpose of establishing its recovery for net reciprocal
compensation, a Price Cap Carrier may elect to forgo this step and
receive no recovery for reductions in net reciprocal compensation. If a
carrier elects this option, it may not change its election at a later
date.
(G) An amount equal to True-up Revenues for Access Recovery Charges
less Expected Revenues for Access Recovery Charges for the year
beginning July 1, 2015.
(vii) Beginning July 1, 2018, a Price Cap Carrier's eligible
recovery will be equal to ninety (90) percent of the sum of the amounts
in paragraphs (d)(1)(vii)(A) though (d)(1)(vii)(G) of this section, and
then adding the amount in paragraph (d)(1)(vii)(H) of this section to
that amount:
(A) The amount of the reduction in Transitional Intrastate Access
Service revenues determined pursuant to Sec. 51.907(b)(2) and (c)
multiplied by the Price Cap Carrier Traffic Demand Factor; and:
(B) The reduction in interstate switched access revenues equal to
the Initial Composite terminating End Office Access Rate using Fiscal
Year 2011 terminating interstate end office switching minutes, and then
multiply by the Price Cap Carrier Traffic Demand Factor;
(C) The reduction in revenues equal to the intrastate 2014 Composite
terminating End Office Access Rate using Fiscal Year 2011 terminating
intrastate end office switching minutes, and then multiply by the Price
Cap Carrier Traffic Demand Factor;
(D) The reduction in revenues resulting from reducing the
terminating Tandem-Switched Transport Access Service rate to $0.0007
pursuant to Sec. 51.907(g)(2) using Fiscal Year 2011 terminating
tandem-switched minutes, and then multiply by the Price Cap Carrier
Traffic Demand Factor;
(E) The reduction in revenues resulting from moving from a
terminating Tandem-Switched Transport Access Service rate tariffed at a
maximum of $0.0007 to removal of intercarrier charges pursuant to Sec.
51.907(h), if applicable, using Fiscal Year 2011 terminating tandem-
switched minutes, and then multiply by the Price Cap Carrier Traffic
Demand Factor;
(F) CMRS Net Reciprocal Compensation Revenues multiplied by the
Price Cap Carrier Traffic Demand Factor; and
(G) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011
net reciprocal compensation revenues other than those associated with
CMRS traffic as described in Sec. 51.701(b)(2) resulting from rate
reductions required by Sec. 51.705 may be calculated in one of the
following ways:
(1) Calculate the cumulative reduction in Fiscal Year 2011 net
reciprocal compensation revenue as a result of rate reductions required
by Sec. 51.705 using Fiscal Year 2011 reciprocal compensation demand,
and then multiply by the Price Cap Carrier Traffic Demand Factor;
(2) By using a composite reciprocal compensation rate as follows:
(i) Establish a composite reciprocal compensation rate for its
Fiscal Year 2011 reciprocal compensation receipts and its Fiscal Year
2011 reciprocal compensation payments by dividing its Fiscal Year 2011
reciprocal compensation receipts and payments by its respective Fiscal
Year 2011 demand excluding demand for traffic exchanged pursuant to a
bill-and-keep arrangement;
[[Page 85]]
(ii) Calculate the difference between each of the composite
reciprocal compensation rates and the target reciprocal compensation
rate set forth in Sec. 51.705 for the year beginning July 1, 2018,
using the appropriate Fiscal Year 2011 demand, and then multiply by the
Price Cap Carrier Traffic Demand Factor; or
(3) For the purpose of establishing its recovery for net reciprocal
compensation, a Price Cap Carrier may elect to forgo this step and
receive no recovery for reductions in net reciprocal compensation. If a
carrier elects this option, it may not change its election at a later
date.
(H) An amount equal to True-up Revenues for Access Recovery Charges
less Expected Revenues for Access Recovery Charges for the year
beginning July 1, 2016.
(viii) Beginning July 1, 2019, and in subsequent years, a Price Cap
Carrier's eligible recovery will be equal to the amount calculated in
paragraph (d)(1)(vii)(A) through (d)(1)(vii)(H) of this section before
the application of the Price Cap Carrier Traffic Demand Factor
applicable in 2018 multiplied by the appropriate Price Cap Carrier
Traffic Demand Factor for the year in question, and then adding an
amount equal to True-up Revenues for Access Recovery Charges less
Expected Revenues for Access Recovery Charges for the year beginning
July 1 two years earlier.
(2) If a Price Cap Carrier recovers any costs or revenues that are
already being recovered as Eligible Recovery through Access Recovery
Charges or the Connect America Fund from another source, that carrier's
ability to recover reduced switched access revenue from Access Recovery
Charges or the Connect America Fund shall be reduced to the extent it
receives duplicative recovery.
(3) A Price Cap Carrier seeking revenue recovery must annually
certify as part of its tariff filings to the Commission and to the
relevant state commission that the carrier is not seeking duplicative
recovery in the state jurisdiction for any Eligible Recovery subject to
the recovery mechanism.
(e) Access Recovery Charge. (1) A charge that is expressed in
dollars and cents per line per month may be assessed upon end users that
may be assessed an end user common line charge pursuant to Sec. 69.152
of this chapter, to the extent necessary to allow the Price Cap Carrier
to recover some or all of its eligible recovery determined pursuant to
paragraph (d) of this section, subject to the caps described in
paragraph (e)(5) of this section. A Price Cap Carrier may elect to forgo
charging some or all of the Access Recovery Charge.
(2) Total Access Recovery Charges calculated by multiplying the
tariffed Access Recovery Charge by the projected demand for the year in
question may not recover more than the amount of eligible recovery
calculated pursuant to paragraph (d) of this section for the year
beginning on July 1.
(3) For the purposes of this section, a Price Cap Carrier holding
company includes all of its wholly-owned operating companies that are
price cap incumbent local exchange carriers. A Price Cap Carrier Holding
Company may recover the eligible recovery attributable to any price cap
study areas operated by its wholly-owned operating companies through
assessments of the Access Recovery Charge on end users in any price cap
study areas operated by its wholly owned operating companies that are
price cap incumbent local exchange carriers.
(4) Distribution of Access Recovery Charges among lines of different
types. (i) A Price Cap Carrier holding company that does not receive
ICC-replacement CAF support (whether because it elects not to or because
it does not have sufficient eligible recovery after the Access Recovery
Charge is assessed or imputed) may not recover a higher fraction of its
total revenue recovery from Access Recovery Charges assessed on
Residential and Single Line Business lines than:
(A) The number of Residential and Single-Line Business lines divided
by
(B) The sum of the number of Residential and Single-Line Business
lines and two (2) times the number of End User Common Line charges
assessed on Multi-Line Business customers.
(ii) For purposes of this subpart, Residential and Single Line
Business lines are lines (other than lines of Lifeline Customers)
assessed the residential and
[[Page 86]]
single line business end user common line charge and lines assessed the
non-primary residential end user common line charge.
(iii) For purposes of this subpart, Multi-Line Business Lines are
lines assessed the multi-line business end user common line charge.
(5) Per-line caps and other limitations on Access Recovery Charges
(i) For each line other than lines of Lifeline Customers assessed a
primary residential or single-line business end user common line charge
or a non-primary residential end user common line charge pursuant to
Sec. 69.152 of this Chapter, a Price Cap Carrier may assess an Access
Recovery Charge as follows:
(A) Beginning July 1, 2012, a maximum of $0.50 per month for each
line;
(B) Beginning July 1, 2013, a maximum of $1.00 per month for each
line;
(C) Beginning July 1, 2014, a maximum of $1.50 per month for each
line;
(D) Beginning July 1, 2015, a maximum of $2.00 per month for each
line; and
(E) Beginning July 1, 2016, a maximum of $2.50 per month for each
line.
(ii) For each line assessed a multi-line business end user common
line charge pursuant to Sec. 69.152 of this chapter, a Price Cap
Carrier may assess an Access Recovery Charge as follows:
(A) Beginning July 1, 2012, a maximum of $1.00 per month for each
multi-line business end user common line charge assessed;
(B) Beginning July 1, 2013, a maximum of $2.00 per month for each
multi-line business end user common line charge assessed;
(C) Beginning July 1, 2014, a maximum of $3.00 per month for each
multi-line business end user common line charge assessed;
(D) Beginning July 1, 2015, a maximum of $4.00 per month for each
multi-line business end user common line charge assessed; and
(E) Beginning July 1, 2016, a maximum of $5.00 per month for each
multi-line business end user common line charge assessed.
(iii) The Access Recovery Charge allowed by paragraph (e)(5)(i) of
this section may not be assessed to the extent that its assessment would
bring the total of the Rate Ceiling Component Charges above the
Residential Rate Ceiling on January 1 of that year. This limitation
applies only to the first residential line obtained by a residential end
user and does not apply to single-line business customers.
(iv) The Access Recovery Charge allowed by paragraph (e)(5)(ii) of
this section may not be assessed to the extent that its assessment would
bring the total of the multi-line business end user common line charge
and the Access Recovery Charge above $12.20 per line.
(v) The Access Recovery Charge assessed on lines assessed the non-
primary residential line end user common line charge in a study area may
not exceed the Access Recovery Charge assessed on residential end-users'
first residential line in that study area.
(vi) The Access Recovery Charge may not be assessed on lines of any
Lifeline Customers.
(vii) If in any year, the Price Cap Carrier's Access Recovery Charge
is not at its maximum, the succeeding year's Access Recovery Charge may
not increase more than $.0.50 per line per month for charges assessed
under paragraph (e)(5)(i) of this section or $1.00 per line per month
for charges assessed under paragraph (e)(5)(ii) of this section.
(f) Price Cap Carrier eligibility for CAF ICC Support. (1) A Price
Cap Carrier shall elect in its July 1, 2012 access tariff filing whether
it will receive CAF ICC Support under this paragraph. A Price Cap
Carrier eligible to receive CAF ICC Support subsequently may elect at
any time not to receive such funding. Once it makes the election not to
receive CAFF ICC Support, it may not elect to receive such funding at a
later date.
(2) Beginning July 1, 2012, a Price Cap Carrier may recover any
eligible recovery allowed by paragraph (d) that it could not have
recovered through charges assessed pursuant to paragraph (e) of this
section from CAF ICC Support pursuant to Sec. 54.304. For this purpose,
the Price Cap Carrier must impute the maximum charges it could have
assessed under paragraph (e)of this section.
(3) Beginning July 1, 2017, a Price Cap Carrier may recover two-
thirds (\2/3\) of
[[Page 87]]
the amount it otherwise would have been eligible to recover under
paragraph (f)(2) from CAF ICC Support.
(4) Beginning July 1, 2018, a Price Cap Carrier may recover one-
third (1/3) of the amount it otherwise would have been eligible to
recover under paragraph (f)(2) of this section from CAF ICC Support.
(5) Beginning July 1, 2019, a Price Cap Carrier may no longer
recover any amount related to revenue recovery under this paragraph from
CAF ICC Support.
(6) A Price Cap Carrier that elects to receive CAF ICC support must
certify with its 2012 annual access tariff filing and on April 1st of
each subsequent year that it has complied with paragraphs (d) and (e) of
this section, and, after doing so, is eligible to receive the CAF ICC
support requested pursuant to paragraph (f) of this section.
[76 FR 73856, Nov. 29, 2011, as amended at 77 FR 48453, Aug. 14, 2012]
Sec. 51.917 Revenue recovery for Rate-of-Return Carriers.
(a) Scope. This section sets forth the extent to which Rate-of-
Return Carriers may recover, through the recovery mechanism outlined in
paragraphs (d) through (f) of this section, a portion of revenues lost
due to rate reductions required by Sec. 20.11(b) of this chapter, and
Sec. Sec. 51.705 and 51.909.
(b) Definitions.
(1) 2011 Interstate Switched Access Revenue Requirement. 2011
Interstate Switched Access Revenue Requirement means:
(i) For a Rate-of-Return Carrier that participated in the NECA 2011
annual switched access tariff filing, its projected interstate switched
access revenue requirement associated with the NECA 2011 annual
interstate switched access tariff filing;
(ii) For a Rate-of-Return Carrier subject to Sec. 61.38 of this
chapter that filed its own annual access tariff in 2010 and did not
participate in the NECA 2011 annual switched access tariff filing, its
projected interstate switched access revenue requirement in its 2010
annual interstate switched access tariff filing; and
(iii) For a Rate-of-Return Carrier subject to Sec. 61.39 of this
chapter that filed its own annual switched access tariff in 2011, its
historically-determined annual interstate switched access revenue
requirement filed with its 2011 annual interstate switched access tariff
filing.
(2) Expected Revenues. Expected Revenues from an access service are
calculated using the default transition rate for that service specified
by Sec. 51.909 and forecast demand for that service. Expected Revenues
from a non-access service are calculated using the default transition
rate for that service specified by Sec. 20.11 of this chapter or Sec.
51.705 of this chapter and forecast net demand for that service.
(3) Rate-of-Return Carrier Baseline Adjustment Factor. The Rate-of-
Return Carrier Baseline Adjustment Factor, as used in calculating
eligible recovery for Rate-of-Return Carriers, is equal to ninety-five
(95) percent for the period beginning July 1, 2012. It is reduced by
five (5) percent of its previous value in each subsequent annual tariff
filing.
(4) Revenue Requirement. Revenue Requirement is equal to a carrier's
regulated operating costs plus an 11.25 percent return on a carrier's
net rate base calculated in compliance with the provisions of parts 36,
65 and 69 of this chapter. For an average schedule carrier, its Revenue
Requirement shall be equal to the average schedule settlements it
received from the pool, adjusted to reflect an 11.25 percent rate of
return, or what it would have received if it had been a participant in
the pool. If the reference is to an operating segment, these references
are to the Revenue Requirement associated with that segment.
(5) True-up Adjustment. The True-up Adjustment is equal to the
Expected Revenues less the True-up Revenues for any particular service
for the period in question.
(6) True-up Revenues. True-up Revenues from an access service are
equal to Expected Revenues minus ((projected demand minus actual
realized demand for that service) times the default transition rate for
that service specified by Sec. 51.909). True-up Revenues from a non-
access service are equal to Expected Revenues minus ((projected
[[Page 88]]
demand minus actual realized net demand for that service) times the
default transition rate for that service specified by 20.11(b) of this
chapter or 51.705). Realized demand is the demand for which payment has
been received, or has been made, as appropriate, by the time the true-up
is made.
(7) 2011 Rate-of-Return Carrier Base Period Revenue. 2011 Rate-of-
Return Carrier Base Period Revenue is the sum of:
(i) 2011 Interstate Switched Access Revenue Requirement;
(ii) Fiscal Year 2011 revenues from Transitional Intrastate Access
Service received by March 31, 2012; and
(iii) Fiscal Year 2011 reciprocal compensation revenues received by
March 31, 2012, less Fiscal Year 2011 reciprocal compensation payments
paid and/or payable by March 31, 2012
(c) 2011 Rate-of-Return Carrier Base Period Revenue shall be
adjusted to reflect the removal of any increases in revenue requirement
or revenues resulting from access stimulation activity the Rate-of-
Return Carrier engaged in during the relevant measuring period. A Rate-
of-Return Carrier should make this adjustment for its initial July 1,
2012, tariff filing, but the adjustment may result from a subsequent
Commission or court ruling.
(d) Eligible Recovery for Rate-of-Return Carriers. (1)
Notwithstanding any other provision of the Commission's rules, a Rate-
of-Return Carrier may recover the amounts specified in this paragraph
through the mechanisms described in paragraphs (e) and (f) of this
section.
(i) Beginning July 1, 2012, a Rate-of-Return Carrier's eligible
recovery will be equal to the 2011 Rate-of-Return Carrier Base Period
Revenue multiplied by the Rate-of-Return Carrier Baseline Adjustment
Factor less:
(A) The Expected Revenues from Transitional Intrastate Access
Service for the year beginning July 1, 2012, reflecting forecasted
demand multiplied by the rates in the rate transition contained in Sec.
51.909;
(B) The Expected Revenues from interstate switched access for the
year beginning July 1, 2012, reflecting forecasted demand multiplied by
the rates in the rate transition contained in Sec. 51.909; and
(C) Expected Net Reciprocal Compensation Revenues for the year
beginning July 1, 2012 using the target methodology required by Sec.
51.705.
(ii) Beginning July 1, 2013, a Rate-of-Return Carrier's eligible
recovery will be equal to the 2011 Rate-of-Return Carrier Base Period
Revenue multiplied by the Rate-of-Return Carrier Baseline Adjustment
Factor less:
(A) The Expected Revenues from Transitional Intrastate Access
Service for the year beginning July 1, 2013, reflecting forecasted
demand multiplied by the rates in the rate transition contained in Sec.
51.909;
(B) The Expected Revenues from interstate switched access for the
year beginning July 1, 2013, reflecting forecasted demand multiplied by
the rates in the rate transition contained in Sec. 51.909; and
(C) Expected Net Reciprocal Compensation Revenues for the year
beginning July 1, 2013 using the target methodology required by Sec.
51.705.
(iii) Beginning July 1, 2014, a Rate-of-Return Carrier's eligible
recovery will be equal to the 2011 Rate-of-Return Carrier Base Period
Revenue multiplied by the Rate-of-Return Carrier Baseline Adjustment
Factor less:
(A) The Expected Revenues from Transitional Intrastate Access
Service for the year beginning July 1, 2014, reflecting forecasted
demand multiplied by the rates in the rate transition contained in Sec.
51.909 (including the reduction in intrastate End Office Switched Access
Service rates), adjusted to reflect the True-Up Adjustment for
Transitional Intrastate Access Service for the year beginning July 1,
2012;
(B) The Expected Revenues from interstate switched access for the
year beginning July 1, 2014, reflecting forecasted demand multiplied by
the rates in the rate transition contained in Sec. 51.909, adjusted to
reflect the True-Up Adjustment for Interstate Switched Access for the
year beginning July 1, 2012; and
(C) Expected Net Reciprocal Compensation Revenues for the year
beginning July 1, 2014 using the target methodology required by Sec.
51.705, adjusted to reflect the True-Up Adjustment for Reciprocal
Compensation for the year beginning July 1, 2012.
[[Page 89]]
(D) An amount equal to True-up Revenues for Access Recovery Charges
less Expected Revenues for Access Recovery Charges for the year
beginning July 1, 2012.
(iv) Beginning July 1, 2015, and for all subsequent years, a Rate-
of-Return Carrier's eligible recovery will be calculated by updating the
procedures set forth in paragraph (d)(1)(iii) of this section for the
period beginning July 1, 2014, to reflect the passage of an additional
year in each subsequent year.
(v) If a Rate-of-Return Carrier receives payments for intrastate or
interstate switched access services or for Access Recovery Charges after
the period used to measure the adjustments to reflect the differences
between estimated and actual revenues, it shall treat such payments as
actual revenue in the year the payment is received and shall reflect
this as an additional adjustment for that year.
(vi) If a Rate-of-Return Carrier receives or makes reciprocal
compensation payments after the period used to measure the adjustments
to reflect the differences between estimated and actual net reciprocal
compensation revenues, it shall treat such amounts as actual revenues or
payments in the year the payment is received or made and shall reflect
this as an additional adjustment for that year.
(vii) If a Rate-of-Return Carrier recovers any costs or revenues
that are already being recovered as Eligible Recovery through Access
Recovery Charges or the Connect America Fund from another source, that
carrier's ability to recover reduced switched access revenue from Access
Recovery Charges or the Connect America Fund shall be reduced to the
extent it receives duplicative recovery. A Rate-of-Return Carrier
seeking revenue recovery must annually certify as part of its tariff
filings to the Commission and to the relevant state commission that the
carrier is not seeking duplicative recovery in the state jurisdiction
for any Eligible Recovery subject to the recovery mechanism.
(e) Access Recovery Charge. (1) A charge that is expressed in
dollars and cents per line per month may be assessed upon end users that
may be assessed a subscriber line charge pursuant to Sec. 69.104 of
this chapter, to the extent necessary to allow the Rate-of-Return
Carrier to recover some or all of its Eligible Recovery determined
pursuant to paragraph (d) of this section, subject to the caps described
in paragraph (e)(6) of this section. A Rate-of-Return Carrier may elect
to forgo charging some or all of the Access Recovery Charge.
(2) Total Access Recovery Charges calculated by multiplying the
tariffed Access Recovery Charge by the projected demand for the year may
not recover more than the amount of eligible recovery calculated
pursuant to paragraph (d) of this section for the year beginning on July
1.
(3) For the purposes of this section, a Rate-of-Return Carrier
holding company includes all of its wholly-owned operating companies. A
Rate-of-Return Carrier Holding Company may recover the eligible recovery
attributable to any Rate-of-Return study areas operated by its wholly-
owned operating companies that are Rate-of-Return incumbent local
exchange carriers through assessments of the Access Recovery Charge on
end users in any Rate-of-Return study areas operated by its wholly-owned
operating companies that are Rate-of-Return incumbent local exchange
carriers.
(4) Distribution of Access Recovery Charges among lines of different
types
(i) A Rate-of-Return Carrier that does not receive ICC-replacement
CAF support (whether because they elect not to or because they do not
have sufficient eligible recovery after the Access Recovery Charge is
assessed or imputed) may not recover a higher ratio of its total revenue
recovery from Access Recovery Charges assessed on Residential and Single
Line Business lines than the following ratio (using holding company
lines):
(A) The number of Residential and Single-Line Business lines
assessed an End User Common Line charge (excluding Lifeline Customers),
divided by
(B) The sum of the number of Residential and Single-Line Business
lines assessed an End User Common Line charge (excluding Lifeline
Customers), and two (2) times the number of End User Common Line charges
assessed on Multi-Line Business customers.
[[Page 90]]
(5) For purposes of this subpart, Residential and Single Line
Business lines are lines (other than lines of Lifeline Customers)
assessed the residential and single line business end user common line
charge.
(i) For purposes of this subpart, Multi-Line Business Lines are
lines assessed the multi-line business end user common line charge.
(ii) [Reserved]
(6) Per-line caps and other limitations on Access Recovery Charges.
(i) For each line other than lines of Lifeline Customers assessed a
primary residential or single-line business end user common line charge
pursuant to Sec. 69.104 of this chapter, a Rate-of-Return Carrier may
assess an Access Recovery Charge as follows:
(A) Beginning July 1, 2012, a maximum of $0.50 per month for each
line;
(B) Beginning July 1, 2013, a maximum of $1.00 per month for each
line;
(C) Beginning July 1, 2014, a maximum of $1.50 per month for each
line;
(D) Beginning July 1, 2015, a maximum of $2.00 per month for each
line;
(E) Beginning July 1, 2016, a maximum of $2.50 per month for each
line; and
(F) Beginning July 1, 2017, a maximum of $3.00 per month for each
line.
(ii) For each line assessed a multi-line business end user common
line charge pursuant to Sec. 69.104 of this chapter, a Rate-of-Return
Carrier may assess an Access Recovery Charge as follows:
(A) Beginning July 1, 2012, a maximum of $1.00 per month for each
multi-line business end user common line charge assessed;
(B) Beginning July 1, 2013, a maximum of $2.00 per month for each
multi-line business end user common line charge assessed;
(C) Beginning July 1, 2014, a maximum of $3.00 per month for each
multi-line business end user common line charge assessed;
(D) Beginning July 1, 2015, a maximum of $4.00 per month for each
multi-line business end user common line charge assessed;
(E) Beginning July 1, 2016, a maximum of $5.00 per month for each
multi-line business end user common line charge assessed; and
(F) Beginning July 1, 2017, a maximum of $6.00 per month for each
multi-line business end user common line charge assessed.
(iii) The Access Recovery Charge allowed by paragraph (e)(6)(i) of
this section may not be assessed to the extent that its assessment would
bring the total of the Rate Ceiling Component Charges above the
Residential Rate Ceiling. This limitation does not apply to single-line
business customers.
(iv) The Access Recovery Charge allowed by paragraph (e)(6)(ii) of
this section may not be assessed to the extent that its assessment would
bring the total of the multi-line business end user common line charge
and the Access Recovery Charge above $12.20 per line.
(v) The Access Recovery Charge may not be assessed on lines of
Lifeline Customers.
(vi) If in any year, the Rate of return carriers' Access Recovery
Charge is not at its maximum, the succeeding year's Access Recovery
Charge may not increase more than $0.50 per line for charges under
paragraph (e)(6)(i) of this section or $1.00 per line for charges
assessed under paragraph (e)(6)(ii) of this section.
(vii) A Price Cap Carrier with study areas that are subject to rate-
of-return regulation shall recover its eligible recovery for such study
areas through the recovery procedures specified in this section. For
that purpose, the provisions of paragraph (e)(3) of this section shall
apply to the rate-of-return study areas if the applicable conditions in
paragraph (e)(3) of this section are met.
(f) Rate-of-Return Carrier eligibility for CAF ICC Recovery. (1) A
Rate-of-Return Carrier shall elect in its July 1, 2012 access tariff
filing whether it will receive CAF ICC Support under this paragraph. A
Rate-of-Return Carrier eligible to receive CAF ICC Support subsequently
may elect at any time not to receive such funding. Once it makes the
election not to receive CAF ICC Support, it may not elect to receive
such funding at a later date.
(2) Beginning July 1, 2012, a Rate-of-Return Carrier may recover any
eligible recovery allowed by paragraph (d) of this section that it could
not have
[[Page 91]]
recovered through charges assessed pursuant to paragraph (e) of this
section from CAF ICC Support pursuant to Sec. 54.304. For this purpose,
the Rate-of-Return Carrier must impute the maximum charges it could have
assessed under paragraph (e) of this section.
(3) A Rate-of-Return Carrier that elects to receive CAF ICC support
must certify with its 2012 annual access tariff filing and on April 1st
of each subsequent year that it has complied with paragraphs (d) and
(e), and, after doing so, is eligible to receive the CAF ICC support
requested pursuant to paragraph (f) of this section.
[76 FR 73856, Nov. 29, 2011, as amended at 77 FR 14302, Mar. 9, 2012]
Sec. 51.919 Reporting and monitoring.
(a) A Price Cap Carrier that elects to participate in the recovery
mechanism outlined in Sec. 51.915 shall, beginning in 2012, file with
the Commission the data consistent with Section XIII (f)(3) of FCC 11-
161 with its annual access tariff filing.
(b) A Rate-of-Return Carrier that elects to participate in the
recovery mechanism outlined in Sec. 51.917 shall file with the
Commission the data consistent with Section XIII (f)(3) of FCC 11-161
with its annual interstate access tariff filing, or on the date such a
filing would have been required if it had been required to file in that
year.
Effective Date Note: At 76 FR 73856, Nov. 29, 2011, Sec. 51.919 was
added. This section contains information collection and recordkeeping
requirements and will not become effective until approval has been given
by the Office of Management and Budget.
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.
52.31 Deployment of long-term database methods for number portability by
CMRS providers.
52.32 Allocation of the shared costs of long-term number portability.
52.33 Recovery of carrier-specific costs directly related to providing
long-term number portability.
52.34 Obligations regarding local number porting to and from
interconnected VoIP or Internet-based TRS providers.
52.35 Porting Intervals.
52.36 Standard data fields for simple port order processing.
52.37-52.99 [Reserved]
Subpart D_Toll Free Numbers
52.101 General definitions.
52.103 Lag times.
52.105 Warehousing.
52.107 Hoarding.
52.109 Permanent cap on number reservations.
52.111 Toll free number assignment.
Appendix to Part 52--Deployment Schedule for Long-Term Database Methods
for Local Number Portability
Authority: Secs. 1, 2, 4, 5, 48 Stat. 1066, as amended; 47 U.S.C.
151, 152, 154 and 155 unless otherwise noted. Interpret or apply secs.
3, 4, 201-05, 207-09, 218, 225-27, 251-52, 271 and 332, 48 Stat. 1070,
as amended, 1077; 47 U.S.C. 153, 154, 201-05, 207-09, 218, 225-27, 251-
52, 271 and 332 unless otherwise noted.
Source: 61 FR 38637, July 25, 1996, unless otherwise noted.
Subpart A_Scope and Authority
Source: 61 FR 47353, Sept. 6, 1996, unless otherwise noted.
Sec. 52.1 Basis and purpose.
(a) Basis. These rules are issued pursuant to the Communications Act
of 1934, as amended, 47 U.S.C. 151 et. seq.
[[Page 92]]
(b) Purpose. The purpose of these rules is to establish, for the
United States, requirements and conditions for the administration and
use of telecommunications numbers for provision of telecommunications
services.
Sec. 52.3 General.
The Commission shall have exclusive authority over those portions of
the North American Numbering Plan (NANP) that pertain to the United
States. The Commission may delegate to the States or other entities any
portion of such jurisdiction.
Sec. 52.5 Definitions.
As used in this part:
(a) Incumbent local exchange carrier. With respect to an area, an
``incumbent local exchange carrier'' is a local exchange carrier that:
(1) On February 8, 1996, provided telephone exchange service in such
area; and
(2)(i) On February 8, 1996, was deemed to be a member of the
exchange carrier association pursuant to Sec. 69.601(b) of this chapter
(47 CFR 69.601(b)); or
(ii) Is a person or entity that, on or after February 8, 1996,
became a successor or assign of a member described in paragraph
(a)(2)(i) of this section.
(b) North American Numbering Council (NANC). The ``North American
Numbering Council'' is an advisory committee created under the Federal
Advisory Committee Act, 5 U.S.C., App (1988), to advise the Commission
and to make recommendations, reached through consensus, that foster
efficient and impartial number administration.
(c) North American Numbering Plan (NANP). The ``North American
Numbering Plan'' is the basic numbering scheme for the
telecommunications networks located in American Samoa, Anguilla,
Antigua, Bahamas, Barbados, Bermuda, British Virgin Islands, Canada,
Cayman Islands, Dominica, Dominican Republic, Grenada, Jamaica,
Montserrat, St. Kitts & Nevis, St. Lucia, St. Vincent, Turks & Caicos
Islands, Trinidad & Tobago, and the United States (including Puerto
Rico, the U.S. Virgin Islands, Guam, the Commonwealth of the Northern
Mariana Islands).
(d) State. The term ``state'' includes the District of Columbia and
the Territories and possessions.
(e) State commission. The term ``state commission'' means the
commission, board, or official (by whatever name designated) which under
the laws of any state has regulatory jurisdiction with respect to
intrastate operations of carriers.
(f) Telecommunications. ``Telecommunications'' means the
transmission, between or among points specified by the user, of
information of the user's choosing, without change in the form or
content of the information as sent and received.
(g) Telecommunications carrier. A ``telecommunications carrier'' is
any provider of telecommunications services, except that such term does
not include aggregators of telecommunications services (as defined in 47
U.S.C. 226(a)(2)).
(h) Telecommunications service. The term ``telecommunications
service'' refers to the offering of telecommunications for a fee
directly to the public, or to such classes of users as to be effectively
available directly to the public, regardless of the facilities used.
(i) Service provider. The term ``service provider'' refers to a
telecommunications carrier or other entity that receives numbering
resources from the NANPA, a Pooling Administrator or a
telecommunications carrier for the purpose of providing or establishing
telecommunications service.
[61 FR 47353, Sept. 6, 1996, as amended at 65 FR 37707, June 16, 2000;
71 FR 65750, Nov. 9, 2006]
Subpart B_Administration
Source: 61 FR 47353, Sept. 6, 1996, unless otherwise noted.
Sec. 52.7 Definitions.
As used in this subpart:
(a) Area code or numbering plan area (NPA). The term ``area code or
numbering plan area'' refers to the first three digits (NXX) of a ten-
digit telephone number in the form NXX-NXX-XXXX, where N represents any
one of the numbers 2 through 9 and X represents any one of the numbers 0
through 9.
[[Page 93]]
(b) Area code relief. The term ``area code relief'' refers to the
process by which central office codes are made available when there are
few or no unassigned central office codes remaining in an existing area
code and a new area code is introduced. Area code relief includes
planning for area code ``jeopardy,'' which is a situation where central
office codes may become exhausted before an area code relief plan can be
implemented.
(c) Central office (CO) code. The term ``central office code''
refers to the second three digits (NXX) of a ten-digit telephone number
in the form NXX-NXX-XXXX, where N represents any one of the numbers 2
through 9 and X represents any one of the numbers 0 through 9.
(d) Central office (CO) code administrator. The term ``central
office code administrator'' refers to the entity or entities responsible
for managing central office codes in each area code.
(e) North American Numbering Plan Administrator (NANPA). The term
``North American Numbering Plan Administrator'' refers to the entity or
entities responsible for managing the NANP.
(f) Billing and Collection Agent. The term ``Billing & Collection
Agent'' (``B&C Agent'') refers to the entity responsible for the
collection of funds to support numbering administration for
telecommunications services from the United States telecommunications
industry and NANP member countries.
(g) Pooling Administrator (PA). The term ``Pooling Administrator''
refers to the entity or entities responsible for administering a
thousands-block number pool.
(h) Contamination. Contamination occurs when at least one telephone
number within a block of telephone numbers is not available for
assignment to end users or customers. For purposes of this provision, a
telephone number is ``not available for assignment'' if it is classified
as administrative, aging, assigned, intermediate, or reserved as defined
in Sec. 52.15(f)(1).
(i) Donation. The term ``donation'' refers to the process by which
carriers are required to contribute telephone numbers to a thousands-
block number pool.
(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
[[Page 94]]
make oral and written presentations, a reasoned recommended solution,
and a written report summarizing the recommendation and the reasons
therefore;
(d) [Reserved]
(e) Recommending to the Commission an appropriate mechanism for
recovering the costs of NANP administration in the United States,
consistent with Sec. 52.17;
(f) Carrying out the duties described in Sec. 52.25; and
(g) Carrying out this part as directed by the Commission;
(h) Monitoring the performance of the NANPA and the B&C Agent on at
least an annual basis; and
(i) Implementing, at the direction of the Commission, any action
necessary to correct identified problems with the performance of the
NANPA and the B&C Agent, as deemed necessary.
[61 FR 47353, Sept. 6, 1996, as amended at 62 FR 55180, Oct. 23, 1997;
71 FR 65750, Nov. 9, 2006]
Sec. 52.12 North American Numbering Plan Administrator and B&C Agent.
The North American Numbering Plan Administrator (``NANPA'') and the
associated ``B&C Agent'' will conduct their respective operations in
accordance with this section. The NANPA and the B&C Agent will conduct
their respective operations with oversight from the Federal
Communications Commission (the ``Commission'') and with recommendations
from the North American Numbering Council (``NANC'').
(a)(1) Neutrality. The NANPA and the B&C Agent shall be non-
governmental entities that are impartial and not aligned with any
particular telecommunication industry segment. Accordingly, while
conducting their respective operations under this section, the NANPA and
B&C Agent shall ensure that they comply with the following neutrality
criteria:
(i) The NANPA and B&C Agent may not be an affiliate of any
telecommunications service provider(s) as defined in the
Telecommunications Act of 1996, or an affiliate of any interconnected
VoIP provider as that term is defined in Sec. 52.21(h). ``Affiliate''
is a person who controls, is controlled by, or is under 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
[[Page 95]]
must also meet the neutrality criteria described in paragraph (a)(1).
(b) Term of administration. The NANPA shall provide numbering
administration, including central office code administration, for the
United States portion of the North American Numbering Plan (``NANP'')
for an initial period of five (5) years. At any time prior to the
termination of the initial or subsequent term of administration, such
term may be renewed for up to five (5) years with the approval of the
Commission and the agreement of the NANPA. The B&C Agent shall provide
billing and collection functions for an initial period of five (5)
years. At any time prior to the termination of the initial or subsequent
term of administration, such term may be renewed for up to five (5)
years with the approval of the Commission and the agreement of the B&C
Agent.
(c) Changes to regulations, rules, guidelines or directives. In the
event that regulatory authorities or industry groups (including, for
example, the Industry Numbering Committee--INC, or its successor) issue
rules, requirements, guidelines or policy directives which may affect
the functions performed by the NANPA and the B&C Agent, the NANPA and
the B&C Agent shall, within 10 business days from the date of official
notice of such rules, requirements, guidelines or policy directives,
assess the impact on its operations and advise the Commission of any
changes required. NANPA and the B&C Agent shall provide written
explanation why such changes are required. To the extent the Commission
deems such changes are necessary, the Commission will recommend to the
NANP member countries appropriate cost recovery adjustments, if
necessary.
(d) Performance review process. NANPA and the B&C Agent shall
develop and implement an internal, documented performance monitoring
mechanism and shall provide such performance review on request of the
Commission on at least an annual basis. The annual assessment process
will not preclude telecommunications industry participants from
identifying performance problems to the NANPA, the B&C Agent and the
NANC as they occur, and from seeking expeditious resolution. If
performance problems are identified by a telecommunications industry
participant, the NANC, B&C Agent or NANPA shall investigate and report
within 10 business days of notice to the participant of corrective
action, if any, taken or to be taken. The NANPA, B&C Agent or NANC (as
appropriate) shall be permitted reasonable time to take corrective
action, including the necessity of obtaining the required consent of the
Commission.
(e) Termination. If the Commission determines at any time that the
NANPA or the B&C Agent fails to comply with the neutrality criteria set
forth in paragraph (a) of this section or substantially or materially
defaults in the performance of its obligations, the Commission shall
advise immediately the NANPA or the B&C Agent of said failure or
default, request immediate corrective action, and permit the NANPA or
B&C Agent reasonable time to correct such failure or default. If the
NANPA or B&C Agent is unwilling or unable to take corrective action, the
Commission may, in a manner consistent with the requirements of the
Administrative Procedure Act and the Communications Act of 1934, as
amended, take any action that it deems appropriate, including
termination of the NANPA's or B&C Agent's term of administration.
(f) Required and optional enterprise services. Enterprise Services,
which are services beyond those described in Sec. 52.13 that may be
provided by the new NANPA for specified fees, may be offered with prior
approval of the Commission.
(1) Required Enterprise Services. At the request of a code holder,
the NANPA shall, in accordance with industry standards and for
reasonable fees, enter certain routing and rating information, into the
industry-approved database(s) for dissemination of such information.
This task shall include reviewing the information and assisting in its
preparation.
(2) Optional Enterprise Services. The NANPA may, subject to prior
approval and for reasonable fees, offer ``Optional Enterprise Services''
which are any services not described elsewhere in this section.
[[Page 96]]
(3) Annual report. NANPA shall identify and record all direct costs
associated with providing Enterprise Services separately from the costs
associated with the non-enterprise NANPA functions. The NANPA shall
submit an annual report to the NANC summarizing the revenues and costs
for providing each Enterprise Service. NANPA shall be audited by an
independent auditor after the first year of operations and every two
years thereafter, and submit the report to the Commission for
appropriate review and action.
[63 FR 55180, Oct. 23, 1997, as amended at 73 FR 9481, Feb. 21, 2008]
Sec. 52.13 North American Numbering Plan Administrator.
(a) The North American Numbering Plan Administrator (NANPA) shall be
an independent and impartial non-government entity.
(b) The NANPA shall administer the numbering resources identified in
paragraph (d) of this section. It shall assign and administer NANP
resources in an efficient, effective, fair, unbiased, and non-
discriminatory manner consistent with industry-developed guidelines and
Commission regulations. It shall support the Commission's efforts to
accommodate current and future numbering needs. It shall perform
additional functions, including but not limited to:
(1) Ensuring the efficient and effective administration and
assignment of numbering resources by performing day-to-day number
resource assignment and administrative activities;
(2) Planning for the long-term need for NANP resources to ensure the
continued viability of the NANP by implementing a plan for number
resource administration that uses effective forecasting and management
skills in order to make the industry aware of the availability of
numbering resources and to meet the current and future needs of the
industry;
(3) Complying with guidelines of the North American Industry
Numbering Committee (INC) or its successor, related industry
documentation, Commission regulations and orders, and the guidelines of
other appropriate policy-making authorities;
(4) Providing management supervision for all of the services it
provides, including responsibility for achieving performance measures
established by the NANC and the INC in industry guidelines;
(5) Participating in the NANC annual performance review as described
in Sec. Sec. 52.11 and 52.12;
(6) Establishing and maintaining relationships with current
governmental and regulatory bodies, and their successors, including the
United States Federal Communications Commission, Industry Canada, the
Canadian Radio-television and Telecommunications Commission, and other
United States, Canadian, and Caribbean numbering authorities and
regulatory agencies, and addressing policy directives from these bodies;
(7) Cooperating with and actively participating in numbering
standards bodies and industry fora, such as INC and, upon request, the
Canadian Steering Committee on Numbering (CSCN);
(8) Representing the NANP to national and international numbering
bodies;
(9) Developing and maintaining communications channels with other
countries who also participate in the NANP to ensure that numbering
needs of all countries served by the NANP are met;
(10) Attending United States Study Group A meetings and maintaining
a working knowledge of Study Group 2 International Telecommunications
Union activities on behalf of the United States telecommunications
industry;
(11) Reviewing requests for all numbering resources to implement new
applications and services and making assignments in accordance with
industry-developed resource planning and assignment guidelines;
(12) Referring requests for particular numbering resources to the
appropriate industry body where guidelines do not exist for those
resources;
(13) Participating in industry activities to determine whether, when
new telecommunications services requiring numbers are proposed, NANP
numbers are appropriate and what level of resource is required (e.g.,
line numbers, central office codes, NPA codes);
[[Page 97]]
(14) Maintaining necessary administrative staff to handle the legal,
financial, technical, staffing, industry, and regulatory issues relevant
to the management of all numbering resources, as well as maintaining the
necessary equipment, facilities, and proper billing arrangements
associated with day-to-day management of all numbering resources;
(15) Managing the NANP in accordance with published guidelines
adopted in conjunction with the industry and the appropriate NANP member
countries' governing agencies, and referring issues to the appropriate
industry body for resolution when they have not been addressed by the
industry;
(16) Responding to requests from the industry and from regulators
for information about the NANP and its administration, as the primary
repository for numbering information in the industry;
(17) Providing upon request information regarding how to obtain
current documents related to NANP administration;
(18) Providing assistance to users of numbering resources and
suggesting numbering administration options, when possible, that will
optimize number resource utilization;
(19) Coordinating its numbering resource activities with the
Canadian Number Administrator and other NANP member countries'
administrators to ensure efficient and effective management of NANP
numbering resources; and
(20) Determining the final allocation methodology for sharing costs
between NANP countries.
(c) In performing the functions outlined in paragraph (b) of this
section, the NANPA shall:
(1) Ensure that the interests of all NANP member countries are
considered;
(2) Assess fairly requests for assignments of NANP numbering
resources and ensure the assignment of numbering resources to
appropriate service providers;
(3) Develop, operate and maintain the computer hardware, software
(database) and mechanized systems required to perform the NANPA and
central office (CO) Code Administration functions;
(4) Manage projects such as Numbering Plan Area (NPA) relief (area
code relief) planning, Numbering Resource Utilization and Forecast
(NRUF) data collection, and NPA and NANP exhaust projection;
(5) Facilitate NPA relief planning meetings;
(6) Participate in appropriate industry activities;
(7) Manage proprietary data and competitively sensitive information
and maintain the confidentiality thereof;
(8) Act as an information resource for the industry concerning all
aspects of numbering (i.e., knowledge and experience in numbering
resource issues, International Telecommunications Union (ITU)
Recommendation E.164, the North American Numbering Plan (NANP), NANP
Administration, INC, NANP area country regulatory issues affecting
numbering, number resource assignment guidelines, central office code
administration, relief planning, international numbering issues, etc.);
and
(9) Ensure that any action taken with respect to number
administration is consistent with this part.
(d) The NANPA and, to the extent applicable, the B&C Agent, shall
administer numbering resources in an efficient and non-discriminatory
manner, in accordance with Commission rules and regulations and the
guidelines developed by the INC and other industry groups pertaining to
administration and assignment of numbering resources, including, but not
limited to:
(1) Numbering Plan Area (NPA) codes,
(2) Central Office codes for the 809 area,
(3) International Inbound NPA 456 NXX codes,
(4) (NPA) 500 NXX codes,
(5) (NPA) 900 NXX codes,
(6) N11 Service codes,
(7) 855-XXXX line numbers,
(8) 555-XXXX line numbers,
(9) Carrier Identification Codes,
(10) Vertical Service Codes,
(11) ANI Information Integer (II) Digit Pairs,
(12) Non Dialable Toll Points, and
[[Page 98]]
(13) New numbering resources as may be defined.
(e) Relationships with other NANP member countries' administrators
and authorities. The NANPA shall address policy directives from other
NANP member countries' governmental and regulatory authorities and
coordinate its activities with other NANP member countries'
administrators, if any, to ensure efficient and effective management of
NANP resources.
(f) Transition plan. The NANPA shall implement a transition plan,
subject to Commission approval, leading to its assumption of NANPA
functions within 90 days of the effective date of a Commission order
announcing the selection of the NANPA.
(g) Transfer of intellectual property. The new NANPA must make
available any and all intellectual property and associated hardware
resulting from its activities as numbering administrator including, but
not limited to, systems and the data contained therein, software,
interface specifications and supporting documentation and make such
property available to whomever NANC directs free of charge. The new
NANPA must specify any intellectual property it proposes to exclude from
the provisions of this paragraph based on the existence of such property
prior to its selection as NANPA.
[61 FR 47353, Sept. 6, 1996, as amended at 62 FR 55181, Oct. 23, 1997;
71 FR 65750, Nov. 9, 2006]
Sec. 52.15 Central office code administration.
(a) Central Office Code Administration shall be performed by the
NANPA, or another entity or entities, as designated by the Commission.
(b) Duties of the entity or entities performing central office code
administration may include, but are not limited to:
(1) Processing central office code assignment applications and
assigning such codes in a manner that is consistent with this part;
(2) Accessing and maintaining central office code assignment
databases;
(3) Conducting the Numbering Resource Utilization and Forecast
(NRUF) data collection;
(4) Monitoring the use of central office codes within each area code
and forecasting the date by which all central office codes within that
area code will be assigned; and
(5) Planning for and initiating area code relief, consistent with
Sec. 52.19.
(c) [Reserved]
(d) Central Office (CO) Code Administration functional requirements.
The NANPA shall manage the United States CO code numbering resource,
including CO code request processing, NPA code relief and jeopardy
planning, and industry notification functions. The NANPA shall perform
its CO Code administration functions in accordance with the published
industry numbering resource administration guidelines and Commission
orders and regulations of 47 CFR chapter I.
(e) [Reserved]
(f) Mandatory reporting requirements--(1) Number use categories.
Numbering resources must be classified in one of the following
categories:
(i) Administrative numbers are numbers used by telecommunications
carriers to perform internal administrative or operational functions
necessary to maintain reasonable quality of service standards.
(ii) Aging numbers are disconnected numbers that are not available
for assignment to another end user or customer for a specified period of
time. Numbers previously assigned to residential customers may be aged
for no more than 90 days. Numbers previously assigned to business
customers may be aged for no more than 365 days.
(iii) Assigned numbers are numbers working in the Public Switched
Telephone Network under an agreement such as a contract or tariff at the
request of specific end users or customers for their use, or numbers not
yet working but having a customer service order pending. Numbers that
are not yet working and have a service order pending for more than five
days shall not be classified as assigned numbers.
(iv) Available numbers are numbers that are available for assignment
to subscriber access lines, or their equivalents, within a switching
entity or point of interconnection and are not classified as assigned,
intermediate, administrative, aging, or reserved.
[[Page 99]]
(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 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.
[[Page 100]]
(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 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
[[Page 101]]
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 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.
[[Page 102]]
(3) Requests for ``for cause'' audits shall be forwarded to the
Chief of the Enforcement Bureau, with a copy to the Chief of the Common
Carrier Bureau. Requests must state the reason for which a ``for cause''
audit is being requested and include documentation of the alleged
anomaly, inconsistency, or violation of the Commission rules or orders
or applicable industry guidelines. The Chief of the Enforcement Bureau
will provide carriers up to 30 days to provide a written response to a
request for a ``for cause'' audit.
[61 FR 47353, Sept. 6, 1996, as amended at 62 FR 55182, Oct. 23, 1997;
65 FR 37707, June 16, 2000; 66 FR 9531, Feb. 8, 2001; 67 FR 6434, Feb.
12, 2002; 67 FR 13226, Mar. 21, 2002; 68 FR 25843, May 14, 2003; 71 FR
65750, Nov. 9, 2006]
Sec. 52.16 Billing and Collection Agent.
The B&C Agent shall:
(a) Calculate, assess, bill and collect payments for all numbering
administration functions and distribute funds to the NANPA, or other
agent designated by the Common Carrier Bureau that performs functions
related to numbering administration, on a monthly basis;
(b) Distribute to carriers the ``Telecommunications Reporting
Worksheet,'' described in Sec. 52.17(b).
(c) Keep confidential all data obtained from carriers and not
disclose such data in company-specific form unless authorized by the
Commission. Subject to any restrictions imposed by the Chief of the
Wireline Competition Bureau, the B & C Agent may share data obtained
from carriers with the administrators of the universal service support
mechanism (See 47 CFR 54.701 of this chapter), the TRS Fund (See 47 CFR
64.604(c)(4)(iii)(H) of this chapter), and the local number portability
cost recovery (See 47 CFR 52.32). The B & C Agent shall keep
confidential all data obtained from other administrators. The B & C
Agent shall use such data, from carriers or administrators, only for
calculating, collecting and verifying payments. The Commission shall
have access to all data reported to the Administrator. Contributors may
make requests for Commission nondisclosure of company-specific revenue
information under Sec. 0.459 of this chapter by so indicating on the
Telecommunications Reporting Worksheet at the time that the subject data
are submitted. The Commission shall make all decisions regarding
nondisclosure of company-specific information.
(d) Develop procedures to monitor industry compliance with reporting
requirements and propose specific procedures to address reporting
failures and late payments;
(e) File annual reports with the appropriate regulatory authorities
of the NANP member countries as requested; and
(f) Obtain an audit from an independent auditor after the first year
of operations and annually thereafter, which shall evaluate the validity
of calculated payments. The B&C Agent shall submit the audit report to
the Commission for appropriate review and action.
(g) For the purposes of this rule, the term ``carrier(s)'' shall
include interconnected VoIP providers as that term is defined in Sec.
52.21(h).
[62 FR 55183, Oct. 23, 1997, as amended at 64 FR 41330, July 30, 1999;
66 FR 9532, Feb. 8, 2001; 67 FR 13226, Mar. 21, 2002; 73 FR 9481, Feb.
21, 2008]
Sec. 52.17 Costs of number administration.
All telecommunications carriers in the United States shall
contribute on a competitively neutral basis to meet the costs of
establishing numbering administration.
(a) Contributions to support numbering administration shall be the
product of the contributors' end-user telecommunications revenues for
the prior calendar year and a contribution factor determined annually by
the Chief of the Common Carrier Bureau; such contributions to be no less
than twenty-five dollars ($25). The contribution factor shall be based
on the ratio of expected number administration expenses to end-user
telecommunications revenues. Carriers that have no end-user
telecommunications revenues shall contribute twenty-five dollars ($25).
In the event that contributions exceed or are inadequate to cover
administrative costs, the contribution factor for the following year
shall be adjusted by an appropriate amount.
[[Page 103]]
(b) All telecommunications carriers in the United States shall
complete and submit a ``Telecommunications Reporting Worksheet'' (as
published by the Commission in the Federal Register), which sets forth
the information needed to calculate contributions referred to in
paragraph (a) of this section. The worksheet shall be certified to by an
officer of the contributor, and subject to verification by the
Commission or the B & C Agent at the discretion of the Commission. The
Chief of the Common Carrier Bureau may waive, reduce, modify, or
eliminate contributor reporting requirements that prove unnecessary and
require additional reporting requirements that the Bureau deems
necessary to the sound and efficient administration of the number
administration cost recovery.
(c) For the purposes of this section, the term ``telecommunications
carrier'' or ``carrier'' shall include interconnected VoIP providers as
that term is defined in Sec. 52.21(h).
[64 FR 41331, July 30, 1999, as amended at 73 FR 9481, Feb. 21, 2008]
Sec. 52.19 Area code relief.
(a) State commissions may resolve matters involving the introduction
of new area codes within their states. Such matters may include, but are
not limited to: Directing whether area code relief will take the form of
a geographic split, an overlay area code, or a boundary realignment;
establishing new area code boundaries; establishing necessary dates for
the implementation of area code relief plans; and directing public
education efforts regarding area code changes.
(b) State commissions may perform any or all functions related to
initiation and development of area code relief plans, so long as they
act consistently with the guidelines enumerated in this part, and
subject to paragraph (b)(2) of this section. For the purposes of this
paragraph, initiation and development of area code relief planning
encompasses all functions related to the implementation of new area
codes that were performed by central office code administrators prior to
February 8, 1996. Such functions may include: declaring that the area
code relief planning process should begin; convening and conducting
meetings to which the telecommunications industry and the public are
invited on area code relief for a particular area code; and developing
the details of a proposed area code relief plan or plans.
(1) The entity or entities designated by the Commission to serve as
central office code administrator(s) shall initiate and develop area
code relief plans for each area code in each state that has not notified
such entity or entities, pursuant to paragraph (b)(2) of this section,
that the state will handle such functions.
(2) Pursuant to paragraph (b)(1) of this section, a state commission
must notify the entity or entities designated by the Commission to serve
as central office code administrator(s) for its state that such state
commission intends to perform matters related to initiation and
development of area code relief planning efforts in its state.
Notification shall be written and shall include a description of the
specific functions the state commission intends to perform. Where the
NANP Administrator serves as the central office code administrator, such
notification must be made within 120 days of the selection of the NANP
Administrator.
(c) New area codes may be introduced through the use of:
(1) A geographic area code split, which occurs when the geographic
area served by an area code in which there are few or no central office
codes left for assignment is split into two or more geographic parts;
(2) An area code boundary realignment, which occurs when the
boundary lines between two adjacent area codes are shifted to allow the
transfer of some central office codes from an area code for which
central office codes remain unassigned to an area code for which few or
no central office codes are left for assignment; or
(3) An all services area code overlay, which occurs when a new area
code is introduced to serve the same geographic area as one or more
existing area code(s), subject to the following conditions:
(i) No all services area code overlay may be implemented unless all
numbering resources in the new overlay
[[Page 104]]
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, except those exempted by
the Commission, must participate in thousands-block number pooling where
it is implemented and in accordance with the national thousands-block
number pooling framework and implementation schedule established by the
Commission.
(c) Donation of thousands-blocks. (1) All service providers required
to participate in thousands-block number pooling shall donate thousands-
blocks with ten percent or less contamination to the thousands-block
number pool for the rate center within which the numbering resources are
assigned.
(2) All service providers required to participate in thousands-block
number pooling shall be allowed to retain at least one thousands-block
per rate center, even if the thousands-block is ten percent or less
contaminated, as an initial block or footprint block.
(d) Thousands-Block Pooling Administrator. (1) The Pooling
Administrator shall be a non-governmental entity that is impartial and
not aligned with any particular telecommunication industry segment, and
shall comply with the same neutrality requirements that the NANPA is
subject to under this part.
(2) The Pooling Administrator shall maintain no more than a six-
month inventory of telephone numbers in each thousands-block number
pool.
[65 FR 37709, June 16, 2000, as amended at 66 FR 9532, Feb. 8, 2001; 68
FR 43009, July 21, 2003]
Sec. 52.21 Definitions.
As used in this subpart:
(a) The term 100 largest MSAs includes the 100 largest MSAs as
identified in the 1990 U.S. Census reports, as set forth in the Appendix
to this part, as well as those areas identified as one of the largest
100 MSAs on subsequent updates to the U.S. Census reports.
[[Page 105]]
(b) The term broadband PCS has the same meaning as that term is
defined in Sec. 24.5 of this chapter.
(c) The term cellular service has the same meaning as that term is
defined in Sec. 22.99 of this chapter.
(d) The term covered CMRS means broadband PCS, cellular, and 800/900
MHz SMR licensees that hold geographic area licenses or are incumbent
SMR wide area licensees, and offer real-time, two-way switched voice
service, are interconnected with the public switched network, and
utilize an in-network switching facility that enables such CMRS systems
to reuse frequencies and accomplish seamless hand-offs of subscriber
calls.
(e) The term database method means a number portability method that
utilizes one or more external databases for providing called party
routing information.
(f) The term downstream database means a database owned and operated
by an individual carrier for the purpose of providing number portability
in conjunction with other functions and services.
(g) The term incumbent wide area SMR licensee has the same meaning
as that term is defined in Sec. 20.3 of this chapter.
(h) The term ``interconnected VoIP provider'' is an entity that
provides interconnected VoIP service as that term is defined in 47 CFR
9.3.
(i) The term IP Relay provider means an entity that provides IP
Relay as defined by 47 CFR 64.601.
(j) The term local exchange carrier means any person that is engaged
in the provision of telephone exchange service or exchange access. For
purposes of this subpart, such term does not include a person insofar as
such person is engaged in the provision of a commercial mobile service
under 47 U.S.C. 332(c).
(k) The term local number portability administrator (LNPA) means an
independent, non-governmental entity, not aligned with any particular
telecommunications industry segment, whose duties are determined by the
NANC.
(l) The term location portability means the ability of users of
telecommunications services to retain existing telecommunications
numbers without impairment of quality, reliability, or convenience when
moving from one physical location to another.
(m) The term long-term database method means a database method that
complies with the performance criteria set forth in Sec. 52.3(a).
(n) The term number portability means the ability of users of
telecommunications services to retain, at the same location, existing
telecommunications numbers without impairment of quality, reliability,
or convenience when switching from one telecommunications carrier to
another.
(o) The term regional database means an SMS database or an SMS/SCP
pair that contains information necessary for carriers to provide number
portability in a region as determined by the NANC.
(p) The term Registered Internet-based TRS User has the meaning set
forth in 47 CFR 64.601.
(q) The term service control point (SCP) means a database in the
public switched network which contains information and call processing
instructions needed to process and complete a telephone call. The
network switches access an SCP to obtain such information. Typically,
the information contained in an SCP is obtained from the SMS.
(r) The term service management system (SMS) means a database or
computer system not part of the public switched network that, among
other things:
(1) Interconnects to an SCP and sends to that SCP the information
and call processing instructions needed for a network switch to process
and complete a telephone call; and
(2) Provides telecommunications carriers with the capability of
entering and storing data regarding the processing and completing of a
telephone call.
(s) The term service portability means the ability of users of
telecommunications services to retain existing telecommunications
numbers without impairment of quality, reliability, or convenience when
switching from one telecommunications service to another, without
switching from one telecommunications carrier to another.
[[Page 106]]
(t) The term service provider portability means the ability of users
of telecommunications services to retain, at the same location, existing
telecommunications numbers without impairment of quality, reliability,
or convenience when switching from one telecommunications carrier to
another.
(u) The term transitional number portability measure means a method
that allows one local exchange carrier to transfer telephone numbers
from its network to the network of another telecommunications carrier,
but does not comply with the performance criteria set forth in 52.3(a).
Transitional number portability measures are technically feasible
methods of providing number portability including Remote Call Forwarding
(RCF), Direct Inward Dialing (DID), Route Indexing--Portability Hub (RI-
PH), Directory Number Route Indexing (DNRI) and other comparable
methods.
(v) The term VRS provider means an entity that provides VRS as
defined by 47 CFR 64.601.
(w) The term 2009 LNP Porting Intervals Order refers to In the
Matters of Local Number Portability Porting Interval and Validation
Requirements; Telephone Number Portability, WC Docket No. 07-244, CC
Docket No. 95-116, Report and Order and Further Notice of Proposed
Rulemaking, FCC 09-41 (2009).
[61 FR 38637, July 25, 1996. Redesignated at 61 FR 47353, Sept. 6, 1996,
as amended at 61 FR 47355, Sept. 6, 1996; 63 FR 68203, Dec. 10, 1998; 67
FR 6435, Feb. 12, 2002; 68 FR 43009, July 21, 2003; 73 FR 9481, Feb. 21,
2008; 73 FR 41293, July 18, 2008; 74 FR 31638, July 2, 2009]
Sec. 52.23 Deployment of long-term database methods for number
portability by LECs.
(a) Subject to paragraphs (b) and (c) of this section, all local
exchange carriers (LECs) must provide number portability in compliance
with the following performance criteria:
(1) Supports network services, features, and capabilities existing
at the time number portability is implemented, including but not limited
to emergency services, CLASS features, operator and directory assistance
services, and intercept capabilities;
(2) Efficiently uses numbering resources;
(3) Does not require end users to change their telecommunications
numbers;
(4) Does not result in unreasonable degradation in service quality
or network reliability when implemented;
(5) Does not result in any degradation in service quality or network
reliability when customers switch carriers;
(6) Does not result in a carrier having a proprietary interest;
(7) Is able to migrate to location and service portability; and
(8) Has no significant adverse impact outside the areas where number
portability is deployed.
(b)(1) All LECs must provide a long-term database method for number
portability in the 100 largest Metropolitan Statistical Areas (MSAs), as
defined in Sec. 52.21(k), in switches for which another carrier has
made a specific request for the provision of number portability, subject
to paragraph (b)(2) of this section.
(2) Any procedure to identify and request switches for deployment of
number portability must comply with the following criteria:
(i) Any wireline carrier that is certified (or has applied for
certification) to provide local exchange service in a state, or any
licensed CMRS provider, must be permitted to make a request for
deployment of number portability in that state;
(ii) Carriers must submit requests for deployment at least nine
months before the deployment deadline for the MSA;
(iii) A LEC must make available upon request to any interested
parties a list of its switches for which number portability has been
requested and a list of its switches for which number portability has
not been requested; and
(iv) After the deadline for deployment of number portability in an
MSA in the 100 largest MSAs, according to the deployment schedule set
forth in the appendix to this part, a LEC must deploy number portability
in that MSA in additional switches upon request within the following
time frames:
(A) For remote switches supported by a host switch equipped for
portability
[[Page 107]]
(``Equipped Remote Switches''), within 30 days;
(B) For switches that require software but not hardware changes to
provide portability (``Hardware Capable Switches''), within 60 days;
(C) For switches that require hardware changes to provide
portability (``Capable Switches Requiring Hardware''), within 180 days;
and
(D) For switches not capable of portability that must be replaced
(``Non-Capable Switches''), within 180 days.
(c) Beginning January 1, 1999, all LECs must make a long-term
database method for number portability available within six months after
a specific request by another telecommunications carrier in areas in
which that telecommunications carrier is operating or plans to operate.
(d) The Chief, Common Carrier Bureau, may waive or stay any of the
dates in the implementation schedule, as the Chief determines is
necessary to ensure the efficient development of number portability, for
a period not to exceed 9 months (i.e., no later than September 30,
1999).
(e) In the event a LEC is unable to meet the Commission's deadlines
for implementing a long-term database method for number portability, it
may file with the Commission at least 60 days in advance of the deadline
a petition to extend the time by which implementation in its network
will be completed. A LEC seeking such relief must demonstrate through
substantial, credible evidence the basis for its contention that it is
unable to comply with the deployment schedule set forth in the appendix
to this part 52. Such requests must set forth:
(1) The facts that demonstrate why the carrier is unable to meet the
Commission's deployment schedule;
(2) A detailed explanation of the activities that the carrier has
undertaken to meet the implementation schedule prior to requesting an
extension of time;
(3) An identification of the particular switches for which the
extension is requested;
(4) The time within which the carrier will complete deployment in
the affected switches; and
(5) A proposed schedule with milestones for meeting the deployment
date.
(f) The Chief, Wireline Competition Bureau, shall monitor the
progress of local exchange carriers implementing number portability, and
may direct such carriers to take any actions necessary to ensure
compliance with the deployment schedule set forth in the appendix to
this part 52.
(g) Carriers that are members of the Illinois Local Number
Portability Workshop must conduct a field test of any technically
feasible long-term database method for number portability in the
Chicago, Illinois, area. The carriers participating in the test must
jointly file with the Common Carrier Bureau a report of their findings
within 30 days following completion of the test. The Chief, Common
Carrier Bureau, shall monitor developments during the field test, and
may adjust the field test completion deadline as necessary.
(h)(1) Porting from a wireline carrier to a wireless carrier is
required where the requesting wireless carrier's ``coverage area,'' as
defined in paragraph (h)(2) of this section, overlaps the geographic
location in which the customer's wireline number is provisioned,
provided that the porting-in carrier maintains the number's original
rate center designation following the port.
(2) The wireless ``coverage area'' is defined as the area in which
wireless service can be received from the wireless carrier.
[61 FR 38637, July 25, 1996, as amended at 62 FR 18294, Apr. 15, 1997;
67 FR 13226, Mar. 21, 2002; 68 FR 43009, July 21, 2003; 73 FR 9481, Feb.
21, 2008]
Sec. 52.25 Database architecture and administration.
(a) The North American Numbering Council (NANC) shall direct
establishment of a nationwide system of regional SMS databases for the
provision of long-term database methods for number portability.
(b) All telecommunications carriers shall have equal and open access
to the regional databases.
(c) The NANC shall select a local number portability
administrator(s) (LNPA(s)) to administer the regional
[[Page 108]]
databases within seven months of the initial meeting of the NANC.
(d) The NANC shall determine whether one or multiple
administrator(s) should be selected, whether the LNPA(s) can be the same
entity selected to be the North American Numbering Plan Administrator,
how the LNPA(s) should be selected, the specific duties of the LNPA(s),
the geographic coverage of the regional databases, the technical
interoperability and operational standards, the user interface between
telecommunications carriers and the LNPA(s), the network interface
between the SMS and the downstream databases, and the technical
specifications for the regional databases.
(e) Once the NANC has selected the LNPA(s) and determined the
locations of the regional databases, it must report its decisions to the
Commission.
(f) The information contained in the regional databases shall be
limited to the information necessary to route telephone calls to the
appropriate telecommunications carriers. The NANC shall determine what
specific information is necessary.
(g) Any state may opt out of its designated regional database and
implement a state-specific database. A state must notify the Wireline
Competition Bureau and NANC that it plans to implement a state-specific
database within 60 days from the release date of the Public Notice
issued by the Chief, Wireline Competition Bureau, identifying the
administrator selected by the NANC and the proposed locations of the
regional databases. Carriers may challenge a state's decision to opt out
of the regional database system by filing a petition with the
Commission.
(h) Individual state databases must meet the national requirements
and operational standards recommended by the NANC and adopted by the
Commission. In addition, such state databases must be technically
compatible with the regional system of databases and must not interfere
with the scheduled implementation of the regional databases.
(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 and the following portions of
Appendix E: Section 7, Issue Statement I of Appendix A, and Appendix B
in the Working Group Report are 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
[[Page 109]]
basis, until the conclusion of a rulemaking to examine the issue of
local number portability administrator oversight and management and the
question of whether the LLCs should continue to act in this capacity;
and
(3) The NANC shall provide ongoing oversight of number portability
administration, including oversight of the regional LLCs, subject to
Commission review. Parties shall attempt to resolve issues regarding
number portability deployment among themselves and, if necessary, under
the auspices of the NANC. If any party objects to the NANC's proposed
resolution, the NANC shall issue a written report summarizing the
positions of the parties and the basis for the recommendation adopted by
the NANC. The NANC Chair shall submit its proposed resolution of the
dispuited issue to the Chief of the Wireline Competition Bureau as a
recommendation for Commission review. The Chief of the Wireline
Competition Bureau will place the NANC's proposed resolution on public
notice. Recommendations adopted by the NANC and forwarded to the Bureau
may be implemented by the parties pending review of the recommendation.
Within 90 days of the conclusion of the comment cycle, the Chief of the
Wireline Competition Bureau may issue an order adopting, modifying, or
rejecting the recommendation. If the Chief does not act within 90 days
of the conclusion of the comment cycle, the recommendation will be
deemed to have been adopted by the Bureau.
(c) The Director of the Federal Register approves this incorporation
by reference in accordance with 5 U.S.C. 552(a) and 1 CFR part 51.
Copies of the Working Group Report and its appendices can be obtained
from the Commission's contract copier, Best Copy and Printing, Inc.
(BCPI), Portals II, 445 12th Street, SW, Room CY-B402, Washington, DC
20554, (202) 488-5300, or via e-mail at [email protected], and can be
inspected during normal business hours at the following locations:
Reference Information Center, 445 12th Street, SW., Room CY--A257,
Washington, DC 20554 or at the National Archives and Records
Administration (NARA). For information on the availability of this
material at NARA, call (202) 741-6030, or go to: http://
www.archives.gov/federal-register/cfr/ibr-locations.html. The Working
Group Report and its appendices are also available on the Internet at
http://www.fcc.gov/wcb/cpd/Nanc/lnpastuf.html.
[62 FR 48786, Sept. 17, 1997, as amended at 65 FR 58466, Sept. 29, 2000;
67 FR 13226, Mar. 21, 2002; 69 FR 18803, Apr. 9, 2004; 74 FR 31638, July
2, 2009; 75 FR 35315, June 22, 2010]
Sec. 52.31 Deployment of long-term database methods for number
portability by CMRS providers.
(a) By November 24, 2003, all covered CMRS providers must provide a
long-term database method for number portability, including the ability
to support roaming, in the 100 largest MSAs, as defined in Sec.
52.21(k), in compliance with the performance criteria set forth in
section 52.23(a) of this part, in switches for which another carrier has
made a specific request for the provision of number portability, subject
to paragraph (a)(1) of this section. A licensee may have more than one
CMRS system, but only the systems that satisfy the definition of covered
CMRS are required to provide number portability.
(1) Any procedure to identify and request switches for development
of number portability must comply with the following criteria:
(i) Any wireline carrier that is certified (or has applied for
certification) to provide local exchange service in a state, or any
licensed CMRS provider, must be permitted to make a request for
deployment of number portability in that state;
(ii) Carries requesting deployment in the 100 largest MSAs by
November 24, 2003 must submit requests by February 24, 2003.
(iii) A covered CMRS provider must make available upon request to
any interested parties a list of its switches for which number
portability has been requested and a list of its switches for which
number portability has not been requested;
(iv) After November 24, 2003, a covered CMRS provider must deploy
number portability in additional switches serving the 100 largest MSAs
upon request within the following time frames:
(A) For remote switches supported by a host switch equipped for
portability
[[Page 110]]
(``Equipped Remote Switches''), within 30 days;
(B) For switches that require software but not hardware changes to
provide portability (``Hardware Capable Switches''), within 60 days;
(C) For switches that require hardware changes to provide
portability (``Capable Switches Requiring Hardware''), within 180 days;
and
(D) For switches not capable of portability that must be replaced
(``Non-Capable Switches''), within 180 days.
(v) Carriers must be able to request deployment in any wireless
switch that serves any area within the MSA, even if the wireless switch
is outside that MSA, or outside any of the MSAs identified in the
Appendix to this part.
(2) By November 24, 2002, all covered CMRS providers must be able to
support roaming nationwide.
(b) By December 31, 1998, all covered CMRS providers must have the
capability to obtain routing information, either by querying the
appropriate database themselves or by making arrangements with other
carriers that are capable of performing database queries, so that they
can deliver calls from their networks to any party that has retained its
number after switching from one telecommunications carrier to another.
(c) [Reserved]
(d) In the event a carrier subject to paragraphs (a) and (b) of this
section is unable to meet the Commission's deadlines for implementing a
long-term number portability method, it may file with the Commission at
least 60 days in advance of the deadline a petition to extend the time
by which implementation in its network will be completed. A carrier
seeking such relief must demonstrate through substantial, credible
evidence the basis for its contention that it is unable to comply with
paragraphs (a) and (b) of this section. Such requests must set forth:
(1) The facts that demonstrate why the carrier is unable to meet our
deployment schedule;
(2) A detailed explanation of the activities that the carrier has
undertaken to meet the implementation schedule prior to requesting an
extension of time;
(3) An identification of the particular switches for which the
extension is requested;
(4) The time within which the carrier will complete deployment in
the affected switches; and
(5) A proposed schedule with milestones for meeting the deployment
date.
(e) The Chief, Wireless Telecommunications Bureau, may establish
reporting requirements in order to monitor the progress of covered CMRS
providers implementing number portability, and may direct such carriers
to take any actions necessary to ensure compliance with this deployment
schedule.
[61 FR 38637, July 25, 1996, as amended at 62 FR 18295, Apr. 15, 1997;
63 FR 68204, Dec. 10, 1998; 64 FR 22563, Apr. 27, 1999; 68 FR 43009,
July 21, 2003; 71 FR 65750, Nov. 9, 2006]
Sec. 52.32 Allocation of the shared costs of long-term number
portability.
(a) The local number portability administrator, as defined in Sec.
52.21(h), of each regional database, as defined in Sec. 52.21(1), shall
recover the shared costs of long-term number portability attributable to
that regional database from all telecommunications carriers providing
telecommunications service in areas that regional database serves.
Pursuant to its duties under Sec. 52.26, the local number portability
administrator shall collect sufficient revenues to fund the operation of
the regional database by:
(1) Assessing a $100 yearly contribution on each telecommunications
carrier identified in paragraph (a) introductory text that has no
intrastate, interstate, or international end-user telecommunications
revenue derived from providing telecommunications service in the areas
that regional database serves, and
(2) Assessing on each of the other telecommunications carriers
providing telecommunications service in areas that regional database
serves, a charge that recovers the remaining shared costs of long-term
number portability attributable to that regional database in proportion
to the ratio of:
(i) The sum of the intrastate, interstate, and international end-
user telecommunications revenues that such
[[Page 111]]
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 nondisclosure of company-specific revenue
information under Sec. 0.459 of this chapter by so indicating on the
Telecommunications Reporting Worksheet at the time that the subject data
are submitted. The Commission shall make all decisions regarding
nondisclosure of company-specific information.
(d) Once a telecommunications carrier has been allocated, pursuant
to paragraph (a)(1) or (a)(2) of this section, its portion of the shared
costs of long-term number portability attributable to a regional
database, the carrier shall treat that portion as a carrier-specific
cost directly related to providing number portability.
(e) For the purposes of this section, the term ``telecommunications
carrier'' shall include interconnected VoIP providers as that term is
defined in Sec. 52.21(h); and ``telecommunications service'' shall
include ``interconnected VoIP service'' as that term is defined in 47
CFR 9.3.
[63 FR 35160, June 29, 1998, as amended at 64 FR 41331, July 30, 1999;
67 FR 13226, Mar. 21, 2002; 73 FR 9481, Feb. 21, 2008]
Sec. 52.33 Recovery of carrier-specific costs directly related to
providing long-term number portability.
(a) Incumbent local exchange carriers may recover their carrier-
specific costs directly related to providing long-term number
portability by establishing in tariffs filed with the Federal
Communications Commission a monthly number-portability charge, as
specified in paragraph (a)(1) of this section, a number portability
query-service charge, as specified in paragraph (a)(2) of this section,
and a monthly number-portability query/administration charge, as
specified in paragraph (a)(3) of this section.
(1) The monthly number-portability charge may take effect no earlier
than February 1, 1999, on a date the incumbent local exchange carrier
selects, and may end no later than 5 five years after the incumbent
local exchange carrier's monthly number-portability charge takes effect.
(i) An incumbent local exchange carrier may assess each end user it
serves in the 100 largest metropolitan statistical areas, and each end
user it serves from a number-portability-capable
[[Page 112]]
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 carrier-
specific costs directly related to the carrier's allocated share of the
regional local number portability administrator's costs, except that
per-line monthly number-portability query/administration charges shall
be assigned as specified in paragraph (a)(1) of this section with
respect to monthly number-portability charges.
(i) Such incumbent local exchange carriers may assess a separate
monthly number-portability charge as specified in paragraph (a)(1) of
this section but such charge may recover only the costs incurred to
implement number portability functionality and shall not include costs
recovered through the monthly number-portability query/administration
charge.
(ii) The monthly number-portability query/administration charge may
end no later than five years after the incumbent local exchange
carrier's monthly number-portability query/administration charge takes
effect. The monthly number-portability query/administration charge may
be collected over a different five-year period than the monthly number-
portability charge. These five-year periods may run either consecutively
or concurrently, in whole or in part.
(b) All interconnected VoIP providers and telecommunications
carriers other than incumbent local exchange carriers may recover their
number portability costs in any manner consistent with applicable state
and federal laws and regulations.
[63 FR 35161, June 29, 1998, as amended at 67 FR 40620, June 13, 2002;
73 FR 9481, Feb. 21, 2008]
Sec. 52.34 Obligations regarding local number porting to and from
interconnected VoIP or Internet-based TRS providers.
(a) An interconnected VoIP or VRS or IP Relay provider must
facilitate an end-user customer's or a Registered Internet-based TRS
User's valid number portability request, as it is defined in this
subpart, either to or from a
[[Page 113]]
telecommunications carrier or an interconnected VoIP or VRS or IP Relay
provider. ``Facilitate'' is defined as the interconnected VoIP or VRS or
IP Relay provider's affirmative legal obligation to take all steps
necessary to initiate or allow a port-in or port-out itself or through
the telecommunications carriers, if any, that it relies on to obtain
numbering resources, subject to a valid port request, without
unreasonable delay or unreasonable procedures that have the effect of
delaying or denying porting of the NANP-based telephone number.
(b) An interconnected VoIP or VRS or IP Relay provider may not enter
into any agreement that would prohibit an end-user customer or a
Registered Internet-based TRS User from porting between interconnected
VoIP or VRS or IP Relay providers, or to or from a telecommunications
carrier.
[73 FR 9481, Feb, 21, 2008, as amended at 73 FR 41294, July 18, 2008]
Sec. 52.35 Porting Intervals.
(a) All telecommunications carriers required by the Commission to
port telephone numbers must complete a simple wireline-to-wireline or
simple intermodal port request within one business day unless a longer
period is requested by the new provider or by the customer. The
traditional work week of Monday through Friday represents mandatory
business days and 8 a.m. to 5 p.m. represents minimum business hours,
excluding the current service provider's company-defined holidays. An
accurate and complete Local Service Request (LSR) must be received by
the current service provider between 8 a.m. and 1 p.m. local time for a
simple port request to be eligible for activation at midnight on the
same day. Any simple port LSRs received after this time will be
considered received on the following business day at 8 a.m. local time.
(b) Small providers, as described in the 2009 LNP Porting Interval
Order, must comply with this section by February 2, 2011.
(c) Unless directed otherwise by the Commission, any
telecommunications carrier granted a waiver by the Commission of the
one-business day porting interval described in paragraph (a) must
complete a simple wireline-to-wireline or simple intermodal port request
within four business days unless a longer period is requested by the new
provider or by the customer.
(d) All telecommunications carriers required by the Commission to
port telephone numbers must complete a non-simple wireline-to-wireline
or non-simple intermodal port request within four business days unless a
longer period is requested by the new provider or by the customer.
(e) For purposes of this section:
(1) The term ``telecommunications carrier'' includes an
interconnected Voice over Internet Protocol (VoIP) provider as that term
in defined in Sec. 52.21(h);
(2) The term ``local time'' means the predominant time zone of the
Number Portability Administration Center (NPAC) Region in which the
telephone number is being ported; and
(3) The term ``intermodal ports'' includes
(i) Wireline-to-wireless ports;
(ii) Wireless-to-wireline ports; and
(iii) Ports involving interconnected VoIP service.
[75 FR 35315, June 22, 2010]
Sec. 52.36 Standard data fields for simple port order processing.
(a) A telecommunications carrier may require only the data described
in paragraphs (b) and (c) of this section to accomplish a simple port
order request from an end user customer's new telecommunication's
carrier.
(b) Required standard data fields.
(1) Ported telephone number;
(2) Account number;
(3) Zip code;
(4) Company code;
(5) New network service provider;
(6) Desired due date;
(7) Purchase order number;
(8) Version;
(9) Number portability direction indicator;
(10) Customer carrier name abbreviation;
(11) Requisition type and status;
(12) Activity;
(13) Telephone number of initiator; and
(14) Agency authority status.
[[Page 114]]
(c) Optional standard data field. The Passcode field shall be
optional unless the passcode has been requested and assigned by the end
user.
(d) For purposes of this section, the term ``telecommunications
carrier'' includes an interconnected VoIP provider as that term is
defined in Sec. 52.21(h).
[75 FR 35315, June 22, 2010]
Effective Date Note: At 75 FR 35315, June 22, 2010, Sec. 52.36 was
added. This section contains information collection and recordkeeping
requirements and will not become effective until approval has been given
by the Office of Management and Budget.
Sec. Sec. 52.37-52.99 [Reserved]
Subpart D_Toll Free Numbers
Source: 62 FR 20127, Apr. 25, 1997, unless otherwise noted.
Sec. 52.101 General definitions.
As used in this part:
(a) Number Administration and Service Center (``NASC''). The entity
that provides user support for the Service Management System database
and administers the Service Management System database on a day-to-day
basis.
(b) Responsible Organization (``RespOrg''). The entity chosen by a
toll free subscriber to manage and administer the appropriate records in
the toll free Service Management System for the toll free subscriber.
(c) Service Control Points. The regional databases in the toll free
network.
(d) Service Management System Database (``SMS Database''). The
administrative database system for toll free numbers. The Service
Management System is a computer system that enables Responsible
Organizations to enter and amend the data about toll free numbers within
their control. The Service Management System shares this information
with the Service Control Points. The entire system is the SMS database.
(e) Toll Free Subscriber. The entity that requests a Responsible
Organization to reserve a toll free number from the SMS database.
(f) Toll Free Number. A telephone number for which the toll charges
for completed calls are paid by the toll free subscriber. The toll free
subscriber's specific geographic location has no bearing on what toll
free number it can obtain from the SMS database.
Sec. 52.103 Lag times.
(a) Definitions. As used in this section, the following definitions
apply:
(1) Assigned Status. A toll free number record that has specific
subscriber routing information entered by the Responsible Organization
in the Service Management System database and is pending activation in
the Service Control Points.
(2) Disconnect Status. The toll free number has been discontinued
and an exchange carrier intercept recording is being provided.
(3) Lag Time. The interval between a toll free number's reservation
in the Service Management System database and its conversion to working
status, as well as the period of time between disconnection or
cancellation of a toll free number and the point at which that toll free
number may be reassigned to another toll free subscriber.
(4) Reserved Status. The toll free number has been reserved from the
Service Management System database by a Responsible Organization for a
toll free subscriber.
(5) Seasonal Numbers. Toll free numbers held by toll free
subscribers who do not have a year-round need for a toll free number.
(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
[[Page 115]]
maximum of 6 months, whichever occurs first. Toll free numbers that,
because of special circumstances, require that they be designated for a
particular subscriber far in advance of their actual usage shall not be
placed in assigned status, but instead shall be placed in unavailable
status.
(d) Disconnect Status. Toll free numbers may remain in disconnect
status for up to 4 months. No requests for extension of the 4-month
disconnect interval shall be granted. All toll free numbers in
disconnect status must go directly into the spare category upon
expiration of the 4-month disconnect interval. Responsible Organizations
shall not retrieve a toll free number from disconnect status and return
that number directly to working status at the expiration of the 4-month
disconnect interval.
(e) Suspend Status. Toll free numbers may remain in suspend status
until changed to working status or for a maximum of 8 months, whichever
occurs first. Only numbers involved in billing disputes shall be
eligible for suspend status.
(f) Unavailable Status. (1) Written requests to make a specific toll
free number unavailable must be submitted to DSMI by the Responsible
Organization managing the records of the toll free number. The request
shall include the appropriate documentation of the reason for the
request. DSMI is the only entity that can assign this status to or
remove this status from a number. Responsible Organizations that have a
toll free subscriber with special circumstances requiring that a toll
free number be designated for that particular subscriber far in advance
of its actual usage may request that DSMI place such a number in
unavailable status.
(2) Seasonal numbers shall be placed in unavailable status. The
Responsible Organization for a toll free subscriber who does not have a
year round need for a toll free number shall follow the procedures
outlined in Sec. 52.103(f)(1) of these rules if it wants DSMI to place
a particular toll free number in unavailable status.
Sec. 52.105 Warehousing.
(a) As used in this section, warehousing is the practice whereby
Responsible Organizations, either directly or indirectly through an
affiliate, reserve toll free numbers from the Service Management System
database without having an actual toll free subscriber for whom those
numbers are being reserved.
(b) Responsible Organizations shall not warehouse toll free numbers.
There shall be a rebuttable presumption that a Responsible Organization
is warehousing toll free numbers if:
(1) The Responsible Organization does not have an identified toll
free subscriber agreeing to be billed for service associated with each
toll free number reserved from the Service Management System database;
or
(2) The Responsible Organization does not have an identified toll
free subscriber agreeing to be billed for service associated with a toll
free number before switching that toll free number from reserved or
assigned to working status.
(c) Responsible Organizations shall not maintain a toll free number
in reserved status if there is not a prospective toll free subscriber
requesting that toll free number.
(d) A Responsible Organization's act of reserving a number from the
Service Management System database shall serve as that Responsible
Organization's certification that there is an identified toll free
subscriber agreeing 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
[[Page 116]]
an equitable basis; and if a Responsible Organization does not have an
identified toll free subscriber agreeing to be billed for service
associated with each toll free number reserved from the database, or if
a Responsible Organization does not have an identified, billed toll free
subscriber before switching a number from reserved or assigned to
working status, then there is a rebuttable presumption that the
Responsible Organization is warehousing numbers. Responsible
Organizations that warehouse numbers will be subject to penalties.
Sec. 52.107 Hoarding.
(a) As used in this section, hoarding is the acquisition by a toll
free subscriber from a Responsible Organization of more toll free
numbers than the toll free subscriber intends to use for the provision
of toll free service. The definition of hoarding also includes number
brokering, which is the selling of a toll free number by a private
entity for a fee.
(1) Toll free subscribers shall not hoard toll free numbers.
(2) No person or entity shall acquire a toll free number for the
purpose of selling the toll free number to another entity or to a person
for a fee.
(3) Routing multiple toll free numbers to a single toll free
subscriber will create a rebuttable presumption that the toll free
subscriber is hoarding or brokering toll free numbers.
(b) Tariff Provision. The following provision shall be included in
the Service Management System tariff and in the local exchange carriers'
toll free database access tariffs:
[T]he Federal Communications Commission (``FCC'') has concluded that
hoarding, defined as the acquisition of more toll free numbers than one
intends to use for the provision of toll free service, as well as the
sale of a toll free number by a private entity for a fee, is contrary to
the public interest in the conservation of the scarce toll free number
resource and contrary to the FCC's responsibility to promote the orderly
use and allocation of toll free numbers.
Sec. 52.109 Permanent cap on number reservations.
(a) A Responsible Organization may have in reserve status, at any
one time, either 2000 toll free numbers or 7.5 percent of that
Responsible Organization's numbers in working status, whichever is
greater.
(b) A Responsible Organization shall never reserve more than 3
percent of the quantity of toll free numbers in spare status as of the
previous Sunday at 12:01 a.m. Eastern Time.
(c) The Wireline Competition Bureau shall modify the quantity of
numbers a Responsible Organization may have in reserve status or the
percentage of numbers in the spare poll that a Responsible Organization
may reserve when exigent circumstances make such action necessary. The
Wireline Competition Bureau shall establish, modify, and monitor toll
free number conservation plans when exigent circumstances necessitate
such action.
[62 FR 20127, Apr. 25, 1997, as amended at 67 FR 13226, Mar. 21, 2002]
Sec. 52.111 Toll free number assignment.
Toll free numbers shall be made available on a first-come, first-
served basis unless otherwise directed by the Commission.
[63 FR 16441, Apr. 3, 1998]
Sec. Appendix to Part 52--Deployment Schedule for Long-Term Database
Methods for Local Number Portability
Implementation must be completed by the carriers in the relevant
MSAs during the periods specified below:
Phase I--10/1/97-3/31/98
Chicago, IL................................................... 3
Philadelphia, PA.............................................. 4
Atlanta, GA................................................... 8
New York, NY.................................................. 2
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
[[Page 117]]
Phoenix, AZ................................................... 17
Seattle, WA................................................... 22
Phase III--4/1/98-6/30/98
Indianapolis, IN.............................................. 34
Milwaukee, WI................................................. 35
Columbus, OH.................................................. 38
Pittsburgh, PA................................................ 19
Newark, NJ.................................................... 25
Norfolk, VA................................................... 32
New Orleans, LA............................................... 41
Charlotte, NC................................................. 43
Greensboro, NC................................................ 48
Nashville, TN................................................. 51
Las Vegas, NV................................................. 50
Nassau, NY.................................................... 13
Buffalo, NY................................................... 44
Orange Co, CA................................................. 15
Oakland, CA................................................... 21
San Francisco, CA............................................. 29
Rochester, NY................................................. 49
Kansas City, KS............................................... 28
Fort Worth, TX................................................ 33
Hartford, CT.................................................. 46
Denver, CO.................................................... 26
Portland, OR.................................................. 27
Phase IV--7/1/98-9/30/98
Grand Rapids, MI.............................................. 56
Dayton, OH.................................................... 61
Akron, OH..................................................... 73
Gary, IN...................................................... 80
Bergen, NJ.................................................... 42
Middlesex, NJ................................................. 52
Monmouth, NJ.................................................. 54
Richmond, VA.................................................. 63
Memphis, TN................................................... 53
Louisville, KY................................................ 57
Jacksonville, FL.............................................. 58
Raleigh, NC................................................... 59
West Palm Beach, FL........................................... 62
Greenville, SC................................................ 66
Honolulu, HI.................................................. 65
Providence, RI................................................ 47
Albany, NY.................................................... 64
San Jose, CA.................................................. 31
Sacramento, CA................................................ 36
Fresno, CA.................................................... 68
San Antonio, TX............................................... 37
Oklahoma City, OK............................................. 55
Austin, TX.................................................... 60
Salt Lake City, UT............................................ 45
Tucson, AZ.................................................... 71
Phase V--10/1/98-12/31/98
Toledo, OH.................................................... 81
Youngstown, OH................................................ 85
Ann Arbor, MI................................................. 95
Fort Wayne, IN................................................ 100
Scranton, PA.................................................. 78
Allentown, PA................................................. 82
Harrisburg, PA................................................ 83
Jersey City, NJ............................................... 88
Wilmington, DE................................................ 89
Birmingham, AL................................................ 67
Knoxville, KY................................................. 79
Baton Rouge, LA............................................... 87
Charleston, SC................................................ 92
Sarasota, FL.................................................. 93
Mobile, AL.................................................... 96
Columbia, SC.................................................. 98
Tulsa, OK..................................................... 70
Syracuse, NY.................................................. 69
Springfield, MA............................................... 86
Ventura, CA................................................... 72
Bakersfield, CA............................................... 84
Stockton, CA.................................................. 94
Vallejo, CA................................................... 99
El Paso, TX................................................... 74
Little Rock, AR............................................... 90
Wichita, KS................................................... 97
New Haven, CT................................................. 91
Omaha, NE..................................................... 75
Albuquerque, NM............................................... 76
Tacoma, WA.................................................... 77
[62 FR 18295, Apr. 15, 1997]
PART 53_SPECIAL PROVISIONS CONCERNING BELL OPERATING COMPANIES--
Table of Contents
Subpart A_General Information
Sec.
53.1 Basis and purpose.
53.3 Terms and definitions.
Subpart B--Bell Operating Company Entry Into InterLATA Services [Reserved]
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]
[[Page 118]]
Subpart F_Alarm Monitoring Services
53.501 [Reserved]
Authority: Sections 1-5, 7, 201-05, 218, 251, 253, 271-75, 48 Stat.
1070, as amended, 1077; 47 U.S.C. 151-55, 157, 201-05, 218, 251, 253,
271-75, unless otherwise noted.
Source: 62 FR 2967, Jan. 21, 1997, unless otherwise noted.
Subpart A_General Information
Sec. 53.1 Basis and purpose.
(a) Basis. The rules in this part are issued pursuant to the
Communications Act of 1934, as amended.
(b) Purpose. The purpose of the rules in this part is to implement
sections 271 and 272 of the Communications Act of 1934, as amended, 47
U.S.C. 271 and 272.
Sec. 53.3 Terms and definitions.
Terms used in this part have the following meanings:
Act. The Act means the Communications Act of 1934, as amended.
Affiliate. An affiliate is a person that (directly or indirectly)
owns or controls, is owned or controlled by, or is under common
ownership or control with, another person. For purposes of this part,
the term ``own'' means to own an equity interest (or the equivalent
thereof) of more than 10 percent.
AT&T Consent Decree. The AT&T Consent Decree is the order entered
August 24, 1982, in the antitrust action styled United States v. Western
Electric, Civil Action No. 82-0192, in the United States District Court
for the District of Columbia, and any judgment or order with respect to
such action entered on or after August 24, 1982.
Bell Operating Company (BOC). The term Bell operating company
(1) Means any of the following companies: Bell Telephone Company of
Nevada, Illinois Bell Telephone Company, Indiana Bell Telephone Company,
Incorporated, Michigan Bell Telephone Company, New England Telephone and
Telegraph Company, New Jersey Bell Telephone Company, New York Telephone
Company, U S West Communications Company, South Central Bell Telephone
Company, Southern Bell Telephone and Telegraph Company, Southwestern
Bell Telephone Company, The Bell Telephone Company of Pennsylvania, The
Chesapeake and Potomac Telephone Company, The Chesapeake and Potomac
Telephone Company of Maryland, The Chesapeake and Potomac Telephone
Company of Virginia, The Chesapeake and Potomac Telephone Company of
West Virginia, The Diamond State Telephone Company, The Ohio Bell
Telephone Company, The Pacific Telephone and Telegraph Company, or
Wisconsin Telephone Company; and
(2) Includes any successor or assign of any such company that
provides wireline telephone exchange service; but
(3) Does not include an affiliate of any such company, other than an
affiliate described in paragraphs (1) or (2) of this definition.
In-Region InterLATA service. In-region interLATA service is
interLATA service that originates in any of a BOC's in-region states,
which are the states in which the BOC or any of its affiliates was
authorized to provide wireline telephone exchange service pursuant to
the reorganization plan approved under the AT&T Consent Decree, as in
effect on February 7, 1996. For the purposes of this part, 800 service,
private line service, or equivalent services that terminate in a BOC's
in-region state and allow the called party to determine the interLATA
carrier are considered to be in-region interLATA service.
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
[[Page 119]]
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 [Reserved]
Subpart C_Separate Affiliate; Safeguards
Sec. 53.201 Services for which a section 272 affiliate is required.
For the purposes of applying section 272(a)(2) of the Act:
(a) Previously authorized activities. When providing previously
authorized activities described in section 271(f) of the Act, a BOC
shall comply with the following:
(1) A BOC shall provide previously authorized interLATA information
services and manufacturing activities through a section 272 affiliate no
later than February 8, 1997.
(2) A BOC shall provide previously authorized interLATA
telecommunications services in accordance with the terms and conditions
of the orders entered by the United States District Court for the
District of Columbia pursuant to section VII or VIII(C) of the AT&T
Consent Decree that authorized such services.
(b) InterLATA information services. A BOC shall provide an interLATA
information service through a section 272 affiliate when it provides the
interLATA telecommunications transmission component of the service
either over its own facilities, or by reselling the interLATA
telecommunications services of an interexchange provider.
(c) Out-of-region interLATA information services. A BOC shall
provide out-of-region interLATA information services through a section
272 affiliate.
Sec. 53.203 Structural and transactional requirements.
(a) Operational independence. A section 272 affiliate and the BOC of
which it is an affiliate shall not jointly own transmission and
switching facilities or the land and buildings where those facilities
are located.
(b) Separate books, records, and accounts. A section 272 affiliate
shall maintain books, records, and accounts, which shall be separate
from the books, records, and accounts maintained by the BOC of which it
is an affiliate.
(c) Separate officers, directors, and employees. A section 272
affiliate shall have separate officers, directors, and employees from
the BOC of which it is an affiliate.
(d) Credit arrangements. A section 272 affiliate shall not obtain
credit under any arrangement that would permit a creditor, upon default,
to have recourse to the assets of the BOC of which it is an affiliate.
(e) Arm's-length transactions. A section 272 affiliate shall conduct
all transactions with the BOC of which it is an affiliate on an arm's
length basis, pursuant to the accounting rules described in Sec. 32.27
of this chapter, with any such transactions reduced to writing and
available for public inspection.
[62 FR 2967, Jan. 21, 1997, as amended at 69 FR 16496, Mar. 30, 2004; 70
FR 55302, Sept. 21, 2005]
Effective Date Note: At 62 FR 2967, Jan. 21, 1997, Sec. 53.203 was
added. Paragraphs (b) and (e) of this section contain information
collection requirements and will not become effective until approval has
been given by the Office of Management and Budget.
[[Page 120]]
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 121]]
any actions necessary to ensure compliance with the audit requirements
listed in paragraph (b) of this section. If the state regulatory
agencies having jurisdiction choose not to participate in the Federal/
State joint audit team, the Chief, Enforcement Bureau, shall establish
an FCC audit team to oversee and direct the independent auditor to take
any actions necessary to ensure compliance with the audit requirements
in paragraph (b) of this section.
[62 FR 2926, Jan. 21, 1997, as amended at 67 FR 13226, Mar. 21, 2002]
Sec. 53.211 Audit planning.
(a) Before selecting an independent auditor, the Bell operating
company shall submit preliminary audit requirements, including the
proposed scope of the audit and the extent of compliance and substantive
testing, to the Federal/State joint audit team organized pursuant to
Sec. 53.209(d);
(b) The Federal/State joint audit team shall review the preliminary
audit requirements to determine whether it is adequate to meet the audit
requirements in Sec. 53.209 (b). The Federal/State joint audit shall
have 30 days to review the audit requirements and determine any
modifications that shall be incorporated into the final audit
requirements.
(c) After the audit requirements have been approved by the Federal/
State joint audit team, the Bell operating company shall engage within
30 days an independent auditor to conduct the biennial audit. In making
its selection, the Bell operating company shall not engage any
independent auditor who has been instrumental during the past two years
in designing any of the accounting or reporting systems under review in
the biennial audit.
(d) The independent auditor selected by the Bell operating company
to conduct the audit shall develop a detailed audit program based on the
final audit requirements and submit it to the Federal/State joint audit
team. The Federal/State joint audit team shall have 30 days to review
the audit program and determine any modifications that shall be
incorporated into the final audit program.
(e) During the course of the biennial audit, the independent
auditor, among other things, shall:
(1) Inform the Federal/State joint audit team of any revisions to
the final audit program or to the scope of the audit.
(2) Notify the Federal/State joint audit team of any meetings with
the Bell operating company or its separate affiliate in which audit
findings are discussed.
(3) Submit to the Chief, Enforcement Bureau, any accounting or rule
interpretations necessary to complete the audit.
[62 FR 2926, Jan. 21, 1997, as amended at 67 FR 13226, Mar. 21, 2002]
Sec. 53.213 Audit analysis and evaluation.
(a) Within 60 dates after the end of the audit period, but prior to
discussing the audit findings with the Bell operating company or the
separate affiliate, the independent auditor shall submit a draft of the
audit report to the Federal/State joint audit team.
(1) The Federal/State joint audit team shall have 45 days to review
the audit findings and audit workpapers, and offer its recommendations
concerning the conduct of the audit or the audit findings to the
independent auditor. Exceptions of the Federal/State 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 122]]
the independent auditor wishes to make to the response.
(c) Within 10 days after receiving the response of the Bell
operating company, the independent auditor shall make available for
public inspection the final audit report by filing it with the
Commission and the state regulatory agencies participating on the joint
audit team.
(d) Interested parties may file comments with the Commission within
60 days after the audit report is made available for public inspection.
[62 FR 2927, Jan. 21, 1997]
Subpart D_Manufacturing by Bell Operating Companies
Sec. 53.301 [Reserved]
Subpart E_Electronic Publishing by Bell Operating Companies
Sec. 53.401 [Reserved]
Subpart F_Alarm Monitoring Services
Sec. 53.501 [Reserved]
PART 54_UNIVERSAL SERVICE--Table of Contents
Subpart A_General Information
Sec.
54.1 Basis and purpose.
54.5 Terms and definitions.
54.7 Intended use of federal universal service support.
54.8 Prohibition on participation: suspension and debarment.
Subpart B_Services Designated for Support
54.101 Supported services for rural, insular and high cost areas.
Subpart C_Carriers Eligible for Universal Service Support
54.201 Definition of eligible telecommunications carriers, generally.
54.202 Additional requirements for Commission designation of eligible
telecommunications carriers.
54.203 Designation of eligible telecommunications carriers for unserved
areas.
54.205 Relinquishment of universal service.
54.207 Service areas.
Subpart D_Universal Service Support for High Cost Areas
54.301 Local switching support.
54.302 Monthly per-line limit on universal service support.
54.304 Administration of Connect America Fund Intercarrier Compensation
Replacement.
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.
54.312 Connect America Fund for Price Cap Territories--Phase I.
54.313 Annual reporting requirements for high-cost recipients.
54.314 Certification of support for eligible telecommunications
carriers.
54.318 High-cost support; limitations on high-cost support.
54.320 Compliance and recordkeeping for the high-cost program.
Subpart E_Universal Service Support for Low Income Consumers
54.400 Terms and definitions.
54.401 Lifeline defined.
54.403 Lifeline support amount.
54.404 The National Lifeline Accountability Database.
54.405 Carrier obligation to offer Lifeline.
54.407 Reimbursement for offering Lifeline.
54.409 Consumer qualification for Lifeline.
54.410 Subscriber eligibility determination and certification.
54.412 Off reservation Tribal lands designation process.
54.413 Link Up for Tribal lands.
54.414 Reimbursement for Tribal Link Up.
54.416 Annual certifications by eligible telecommunications carriers.
54.417 Recordkeeping requirements.
54.418 Digital television transition notices by eligible
telecommunications carriers.
54.419 Validity of electronic signatures.
54.420 Low income program audits.
54.422 Annual reporting for eligible telecommunications carriers that
receive low-income support.
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 Eligible services.
54.503 Competitive bidding requirements.
54.504 Requests for services.
54.505 Discounts.
54.506 [Reserved]
54.507 Cap.
54.508 Technology plans.
[[Page 123]]
54.509 Adjustments to the discount matrix.
54.511 Ordering services.
54.513 Resale and transfer of services.
54.514 Payment for discounted service.
54.515 Distributing support.
54.516 Auditing.
54.517 [Reserved]
54.518 Support for wide area networks.
54.519 State telecommunications networks.
54.520 Children's Internet Protection Act certifications required from
recipients of discounts under the federal universal service
support mechanism for schools and libraries.
54.522 [Reserved]
54.523 Payment for the non-discount portion of supported services.
Subpart G_Universal Service Support for Health Care Providers
54.601 Eligibility.
54.603 Competitive bid requirements.
54.604 Existing contracts.
54.605 Determining the urban rate.
54.607 Determining the rural rate.
54.609 Calculating support.
54.611 Distributing support.
54.613 Limitations on supported services for rural health care
providers.
54.615 Obtaining services.
54.617 Resale.
54.619 Audits and recordkeeping.
54.621 Access to advanced telecommunications and information services.
54.623 Cap.
54.625 Support for services beyond the maximum supported distance for
rural health care providers.
Subpart H_Administration
54.701 Administrator of universal service support mechanisms.
54.702 Administrator's functions and responsibilities.
54.703 The Administrator's Board of Directors.
54.704 The Administrator's Chief Executive Officer.
54.705 Committees of the Administrator's Board of Directors.
54.706 Contributions.
54.707 Audit controls.
54.708 De minimis exemption.
54.709 Computations of required contributions to universal service
support mechanisms.
54.711 Contributor reporting requirements.
54.712 Contributor recovery of universal service costs from end users.
54.713 Contributors' failure to report or to contribute.
54.715 Administrative expenses of the Administrator.
54.717 Audits of the Administrator.
Subpart I_Review of Decisions Issued by the Administrator
54.719 Parties permitted to seek review of Administrator decisions.
54.720 Filing deadlines.
54.721 General filing requirements.
54.722 Review by the Wireline Competition Bureau or the Commission.
54.723 Standard of review.
54.724 Time periods for Commission approval of Administrator decisions.
54.725 Universal service disbursements during pendency of a request for
review and Administrator decision.
Subpart J_Interstate Access Universal Service Support Mechanism
54.800 Terms and definitions.
54.801 General.
54.802 Obligations of local exchange carriers and the Administrator.
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.
Subpart L_Mobility Fund
54.1001 Mobility Fund--Phase I.
54.1002 Geographic areas eligible for support.
54.1003 Provider eligibility.
54.1004 Service to Tribal Lands.
54.1005 Application process.
54.1006 Public interest obligations.
54.1007 Letter of credit.
54.1008 Mobility Fund Phase I disbursements.
54.1009 Annual reports.
54.1010 Record retention for Mobility Fund Phase I.
[[Page 124]]
Authority: 47 U.S.C. 151, 154(i), 201, 205, 214, 219, 220, 254,
303(r), 403, and 1302 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.
Community anchor institutions. For the purpose of high-cost support,
``community anchor institutions'' refers to schools, libraries, health
care providers, community colleges, other institutions of higher
education, and other community support organizations and entities.
Competitive eligible telecommunications carrier. A ``competitive
eligible telecommunications carrier'' is a carrier that meets the
definition of an ``eligible telecommunications carrier'' below and does
not meet the definition of an ``incumbent local exchange carrier'' in
Sec. 51.5 of this chapter.
Contributor. The term ``contributor'' shall refer to an entity
required to contribute to the universal service support mechanisms
pursuant to Sec. 54.706.
Eligible telecommunications carrier. ``Eligible telecommunications
carrier'' means a carrier designated as such under subpart C of this
part.
High-cost support. ``High-cost support'' refers to those support
mechanisms in existence as of October 1, 2011, specifically, high-cost
loop support, safety net additive and safety valve provided pursuant to
subpart F of part 36, local switching support pursuant to Sec. 54.301,
forward-looking support pursuant to Sec. 54.309, interstate access
support pursuant to Sec. Sec. 54.800 through 54.809, and interstate
common line support pursuant to Sec. Sec. 54.901 through 54.904,
support provided pursuant to Sec. Sec. 51.915, 51.917, and 54.304,
support provided to competitive eligible telecommunications carriers as
set forth in Sec. 54.307(e), Connect America Fund support provided
pursuant to Sec. 54.312, and Mobility Fund support provided pursuant to
subpart L of this part.
Incumbent local exchange carrier. ``Incumbent local exchange
carrier'' or ``ILEC'' has the same meaning as that term is defined in
Sec. 51.5 of this chapter.
Information service. ``Information service'' is the offering of a
capability for generating, acquiring, storing, transforming, processing,
retrieving, utilizing, or making available information via
telecommunications, and includes electronic publishing, but does not
include any use of any such capability for the management, control, or
operation of a telecommunications system or the management of a
telecommunications service.
Interconnected VoIP Provider. An ``interconnected VoIP provider'' is
an entity that provides interconnected VoIP service, as that term is
defined in section 9.3 of these rules.
Internet access. ``Internet access'' includes the following
elements:
(1) The transmission of information as common carriage;
(2) The transmission of information as part of a gateway to an
information service, when that transmission does not involve the
generation or alteration of the content of information, but may include
data transmission, address translation, protocol conversion, billing
management, introductory information content, and navigational systems
that enable users to access information services, and that do not affect
the presentation of such information to users; and
(3) Electronic mail services (e-mail).
Interstate telecommunication. ``Interstate telecommunication'' is a
communication or transmission:
[[Page 125]]
(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(ee) of this chapter.
Rural area. For purposes of the schools and libraries universal
support mechanism, a ``rural area'' is a nonmetropolitan county or
county equivalent, as defined in the Office of Management and Budget's
(OMB) Revised Standards for Defining Metropolitan Areas in the 1990s and
identifiable from the most recent Metropolitan Statistical Area (MSA)
list released by OMB, or any contiguous non-urban Census Tract or Block
Numbered Area within an MSA-listed metropolitan county identified in the
most recent Goldsmith Modification published by the Office of Rural
Health Policy of the U.S. Department of Health and Human Services. For
purposes of the rural health care universal service support mechanism, a
``rural area'' is an area that is entirely outside of a Core Based
Statistical Area; is within a Core Based Statistical Area that does not
have any Urban Area with a population of 25,000 or greater; or is in a
Core Based Statistical Area that contains an Urban Area with a
population of 25,000 or greater, but is within a specific census tract
that itself does not contain any part of a Place or Urban Area with a
population of greater than 25,000. ``Core Based Statistical Area'' and
``Urban Area'' are as defined by the Census Bureau and ``Place'' is as
identified by the Census Bureau.
Rural incumbent local exchange carrier. ``Rural incumbent local
exchange carrier'' is a carrier that meets the definitions of ``rural
telephone company'' and ``incumbent local exchange carrier,'' as those
terms are defined in Sec. 51.5 of this chapter.
Rural telephone company. ``Rural telephone company'' has the same
meaning as that term is defined in Sec. 51.5 of this chapter.
State commission. The term ``state commission'' means the
commission, board or official (by whatever name designated) that, under
the laws of any state, has regulatory jurisdiction with respect to
intrastate operations of carriers.
Technically feasible. ``Technically feasible'' means capable of
accomplishment as evidenced by prior success under similar
circumstances. For example, preexisting access at a particular point
evidences the technical feasibility of access at substantially similar
points. A determination of technical feasibility does not consider
economic, accounting, billing, space or site except that space and site
may be considered if there is no possibility of expanding available
space.
Telecommunications. ``Telecommunications'' is the transmission,
between or among points specified by the user, of information of the
user's choosing, without change in the form or content of the
information as sent and received.
Telecommunications carrier. A ``telecommunications carrier'' is any
provider of telecommunications services, except that such term does not
include aggregators of telecommunications services as defined in section
226 of the Act. A telecommunications carrier
[[Page 126]]
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.
Tribal lands. For the purposes of high-cost support, ``Tribal
lands'' include any federally recognized Indian tribe's reservation,
pueblo or colony, including former reservations in Oklahoma, Alaska
Native regions established pursuant to the Alaska Native Claims
Settlement Act (85 Stat. 688) and Indian Allotments, see Sec.
54.400(e), as well as Hawaiian Home Lands--areas held in trust for
native Hawaiians by the state of Hawaii, pursuant to the Hawaiian Homes
Commission Act, 1920, July 9, 1921, 42 Stat 108, et seq., as amended.
Unsubsidized competitor. An ``unsubsidized competitor'' is a
facilities-based provider of residential fixed voice and broadband
service that does not receive high-cost support.
Website. The term ``website'' shall refer to any websites operated
by the Administrator in connection with the schools and libraries
support mechanism, the rural health care support mechanism, the high
cost mechanism, and the low income mechanism.
Wire center. A wire center is the location of a local switching
facility containing one or more central offices, as defined in the
Appendix to part 36 of this chapter. The wire center boundaries define
the area in which all customers served by a given wire center are
located.
[62 FR 32948, June 17, 1997, as amended at 62 FR 41303, Aug. 1, 1997; 63
FR 70571, Dec. 21, 1998; 64 FR 67431, Dec. 1, 1999; 66 FR 30087, June 5,
2001; 66 FR 59726, Nov. 30, 2001; 70 FR 6372, Feb. 7, 2005; 71 FR 38796,
July 10, 2006; 76 FR 73869, Nov. 29, 2011; 77 FR 12966, Mar. 2, 2012; 77
FR 20553, Apr. 5, 2012; 77 FR 30913, May 24, 2012]
Sec. 54.7 Intended use of federal universal service support.
(a) 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.
(b) The use of federal universal service support that is authorized
by paragraph (a) of this section shall include investments in plant that
can, either as built or with the addition of plant elements, when
available, provide access to advanced telecommunications and information
services.
[76 FR 73869, Nov. 29, 2011]
Sec. 54.8 Prohibition on participation: suspension and debarment.
(a) Definitions--(1) Activities associated with or related to the
schools and libraries support mechanism, the high-cost support
mechanism, the rural health care support mechanism, and the low-income
support mechanism. Such matters include the receipt of funds or
discounted services through one or more of these support mechanisms, or
consulting with, assisting, or advising applicants or service providers
regarding one or more of these support mechanisms.
(2) Civil liability. The disposition of a civil action by any court
of competent jurisdiction, whether entered by verdict, decision,
settlement with admission of liability, stipulation, or otherwise
creating a civil liability for the wrongful acts complained of, or a
final determination of liability under the
[[Page 127]]
Program Fraud Civil Remedies Act of 1988 (31 U.S.C. 3801-12).
(3) Consultant. A person that for consideration advises or consults
a person regarding the schools and libraries support mechanism, but who
is not employed by the person receiving the advice or consultation.
(4) Conviction. A judgment or conviction of a criminal offense by
any court of competent jurisdiction, whether entered by verdict or a
plea, including a plea of nolo contendere.
(5) Debarment. Any action taken by the Commission in accordance with
these regulations to exclude a person from activities associated with or
relating to the schools and libraries support mechanism, the high-cost
support mechanism, the rural health care support mechanism, and the low-
income support mechanism. A person so excluded is ``debarred.''
(6) Person. Any individual, group of individuals, corporation,
partnership, association, unit of government or legal entity, however
organized.
(7) Suspension. An action taken by the Commission in accordance with
these regulations that immediately excludes a person from activities
associated with or relating to the schools and libraries support
mechanism, the high-cost support mechanism, the rural health care
support mechanism, and the low-income support mechanism for a temporary
period, pending completion of the debarment proceedings. A person so
excluded is ``suspended.''
(b) Suspension and debarment in general. The Commission shall
suspend and debar a person for any of the causes in paragraph (c) of
this section using procedures established in this section, absent
extraordinary circumstances.
(c) Causes for suspension and debarment. Causes for suspension and
debarment are conviction of or civil judgment for attempt or commission
of criminal fraud, theft, embezzlement, forgery, bribery, falsification
or destruction of records, making false statements, receiving stolen
property, making false claims, obstruction of justice and other fraud or
criminal offense arising out of activities associated with or related to
the schools and libraries support mechanism, the high-cost support
mechanism, the rural health care support mechanism, and the low-income
support mechanism.
(d) Effect of suspension and debarment. Unless otherwise ordered,
any persons suspended or debarred shall be excluded from activities
associated with or related to the schools and libraries support
mechanism, the high-cost support mechanism, the rural health care
support mechanism, and the low-income support mechanism. Suspension and
debarment of a person other than an individual constitutes suspension
and debarment of all divisions and/or other organizational elements from
participation in the program for the suspension and debarment period,
unless the notice of suspension and proposed debarment is limited by its
terms to one or more specifically identified individuals, divisions, or
other organizational elements or to specific types of transactions.
(e) Procedures for suspension and debarment. The suspension and
debarment process shall proceed as follows:
(1) Upon evidence that there exists cause for suspension and
debarment, the Commission shall provide prompt notice of suspension and
proposed debarment to the person. Suspension shall be effective upon the
earlier of receipt of notification or publication in the Federal
Register.
(2) The notice shall:
(i) Give the reasons for the proposed debarment in terms sufficient
to put a person on notice of the conduct or transaction(s) upon which it
is based and the cause relied upon, namely, the entry of a criminal
conviction or civil judgment arising out of activities associated with
or related to the schools and libraries support mechanism, the high-cost
support mechanism, the rural health care support mechanism, and the low-
income support mechanism;
(ii) Explain the applicable debarment procedures;
(iii) Describe the effect of debarment.
(3) A person subject to proposed debarment, or who has an existing
contract with a person subject to proposed debarment or intends to
contract with such a person to provide or receive services in matters
arising out of activities associated with or related to
[[Page 128]]
the schools and libraries support mechanism, the high-cost support
mechanism, the rural health care support mechanism, and the low-income
support mechanism may contest debarment or the scope of the proposed
debarment. A person contesting debarment or the scope of proposed
debarment must file arguments and any relevant documentation within
thirty (30) calendar days of receipt of notice or publication in the
Federal Register, whichever is earlier.
(4) A person subject to proposed debarment, or who has an existing
contract with a person subject to proposed debarment or intends to
contract with such a person to provide or receive services in matters
arising out of activities associated with or related to the schools and
libraries support mechanism, the high-cost support mechanism, the rural
health care support mechanism, and the low-income support mechanism may
also contest suspension or the scope of suspension, but such action will
not ordinarily be granted. A person contesting suspension or the scope
of suspension must file arguments and any relevant documentation within
thirty (30) calendar days of receipt of notice or publication in the
Federal Register, whichever is earlier.
(5) Within ninety (90) days of receipt of any information submitted
by the respondent, the Commission, in the absence of extraordinary
circumstances, shall provide the respondent prompt notice of the
decision to debar. Debarment shall be effective upon the earlier of
receipt of notice or publication in the Federal Register.
(f) Reversal or limitation of suspension or debarment. The
Commission may reverse a suspension or debarment, or limit the scope or
period of suspension or debarment, upon a finding of extraordinary
circumstances, after due consideration following the filing of a
petition by an interested party or upon motion by the Commission.
Reversal of the conviction or civil judgment upon which the suspension
and debarment was based is an example of extraordinary circumstances.
(g) Time period for debarment. A debarred person shall be prohibited
from involvement with the schools and libraries support mechanism for
three (3) years from the date of debarment. The Commission may, if
necessary to protect the public interest, set a longer period of
debarment or extend the existing period of debarment. If multiple
convictions or judgments have been rendered, the Commission shall
determine based on the facts before it whether debarments shall run
concurrently or consecutively.
[68 FR 36943, June 20, 2003. Redesignated and amended at 72 FR 54218,
Sept. 24, 2007]
Subpart B_Services Designated for Support
Sec. 54.101 Supported services for rural, insular and high cost areas.
(a) Services designated for support. Voice Telephony services shall
be supported by federal universal service support mechanisms. Eligible
voice telephony services must provide voice grade access to the public
switched network or its functional equivalent; minutes of use for local
service provided at no additional charge to end users; access to the
emergency services provided by local government or other public safety
organizations, such as 911 and enhanced 911, to the extent the local
government in an eligible carrier's service area has implemented 911 or
enhanced 911 systems; and toll limitation services to qualifying low-
income consumers as provided in subpart E of this part.
(b) An eligible telecommunications carrier must offer voice
telephony service as set forth in paragraph (a) of this section in order
to receive federal universal service support.
[76 FR 73870, Nov. 29, 2011, as amended at 77 FR 12966, Mar. 2, 2012]
Subpart C_Carriers Eligible for Universal Service Support
Sec. 54.201 Definition of eligible telecommunications carriers,
generally.
(a) Carriers eligible to receive support. (1) Only eligible
telecommunications carriers designated under this subpart shall receive
universal service support distributed pursuant to part 36 of this
[[Page 129]]
chapter, and subparts D and E of this part.
(2) [Reserved]
(3) This paragraph does not apply to offset or reimbursement support
distributed pursuant to subpart G of this part.
(4) This paragraph does not apply to support distributed pursuant to
subpart F of this part.
(b) A state commission shall upon its own motion or upon request
designate a common carrier that meets the requirements of paragraph (d)
of this section as an eligible telecommunications carrier for a service
area designated by the state commission.
(c) Upon request and consistent with the public interest,
convenience, and necessity, the state commission may, in the case of an
area served by a rural telephone company, and shall, in the case of all
other areas, designate more than one common carrier as an eligible
telecommunications carrier for a service area designated by the state
commission, so long as each additional requesting carrier meets the
requirements of paragraph (d) of this section. Before designating an
additional eligible telecommunications carrier for an area served by a
rural telephone company, the state commission shall find 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 not designate a common carrier as an
eligible telecommunications carrier for purposes of receiving support
only under subpart E of this part unless the carrier seeking such
designation has demonstrated that it is financially and technically
capable of providing the supported Lifeline service in compliance with
subpart E of this part.
(i) A state commission shall not designate as an eligible
telecommunications carrier a telecommunications carrier that offers the
services supported by federal universal service support mechanisms
exclusively through the resale of another carrier's services.
[62 FR 32948, June 17, 1997, as amended at 63 FR 2125, Jan. 13, 1998; 64
FR 62123, Nov. 16, 1999; 71 FR 65750, Nov. 9, 2006; 77 FR 12966, Mar. 2,
2012]
Sec. 54.202 Additional requirements for Commission designation of
eligible telecommunications carriers.
(a) In order to be designated an eligible telecommunications carrier
under section 214(e)(6), any common carrier in its application must:
(1)(i) Certify that it will comply with the service requirements
applicable to the support that it receives.
(ii) Submit a five-year plan that describes with specificity
proposed improvements or upgrades to the applicant's network throughout
its proposed service area. Each applicant shall estimate the area and
population that will
[[Page 130]]
be served as a result of the improvements. Except, a common carrier
seeking designation as an eligible telecommunications carrier in order
to provide supported services only under subpart E of this part does not
need to submit such a five-year plan.
(2) Demonstrate its ability to remain functional in emergency
situations, including a demonstration that it has a reasonable amount of
back-up power to ensure functionality without an external power source,
is able to reroute traffic around damaged facilities, and is capable of
managing traffic spikes resulting from emergency situations.
(3) Demonstrate that it will satisfy applicable consumer protection
and service quality standards. A commitment by wireless applicants to
comply with the Cellular Telecommunications and Internet Association's
Consumer Code for Wireless Service will satisfy this requirement. Other
commitments will be considered on a case-by-case basis.
(4) For common carriers seeking designation as an eligible
telecommunications carrier for purposes of receiving support only under
subpart E of this part, demonstrate that it is financially and
technically capable of providing the Lifeline service in compliance with
subpart E of this part.
(5) For common carriers seeking designation as an eligible
telecommunications carrier for purposes of receiving support only under
subpart E of this part, submit information describing the terms and
conditions of any voice telephony service plans offered to Lifeline
subscribers, including details on the number of minutes provided as part
of the plan, additional charges, if any, for toll calls, and rates for
each such plan. To the extent the eligible telecommunications carrier
offers plans to Lifeline subscribers that are generally available to the
public, it may provide summary information regarding such plans, such as
a link to a public Web site outlining the terms and conditions of such
plans.
(b) Public interest standard. Prior to designating an eligible
telecommunications carrier pursuant to section 214(e)(6), the Commission
determines that such designation is in the public interest.
(c) A common carrier seeking designation as an eligible
telecommunications carrier under section 214(e)(6) for any part of
Tribal lands shall provide a copy of its petition to the affected tribal
government and tribal regulatory authority, as applicable, at the time
it files its petition with the Federal Communications Commission. In
addition, the Commission shall send any public notice seeking comment on
any petition for designation as an eligible telecommunications carrier
on Tribal lands, at the time it is released, to the affected tribal
government and tribal regulatory authority, as applicable, by the most
expeditious means available.
[77 FR 12966, Mar. 2, 2012]
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
[[Page 131]]
carrier shall give advance notice to the state commission of such
relinquishment.
(b) Prior to permitting a telecommunications carrier designated as
an eligible telecommunications carrier to cease providing universal
service in an area served by more than one eligible telecommunications
carrier, the state commission shall require the remaining eligible
telecommunications carrier or carriers to ensure that all customers
served by the relinquishing carrier will continue to be served, and
shall require sufficient notice to permit the purchase or construction
of adequate facilities by any remaining eligible telecommunications
carrier. The state commission shall establish a time, not to exceed one
year after the state commission approves such relinquishment under this
section, within which such purchase or construction shall be completed.
Sec. 54.207 Service areas.
(a) The term service area means a geographic area established by a
state commission for the purpose of determining universal service
obligations and support mechanisms. A service area defines the overall
area for which the carrier shall receive support from federal universal
service support mechanisms.
(b) In the case of a service area served by a rural telephone
company, service area means such company's ``study area'' unless and
until the Commission and the states, after taking into account
recommendations of a Federal-State Joint Board instituted under section
410(c) of the Act, establish a different definition of service area for
such company.
(c) If a state commission proposes to define a service area served
by a rural telephone company to be other than such company's study area,
the Commission will consider that proposed definition in accordance with
the procedures set forth in this paragraph.
(1) A state commission or other party seeking the Commission's
agreement in redefining a service area served by a rural telephone
company shall submit a petition to the Commission. The petition shall
contain:
(i) The definition proposed by the state commission; and
(ii) The state commission's ruling or other official statement
presenting the state commission's reasons for adopting its proposed
definition, including an analysis that takes into account the
recommendations of any Federal-State Joint Board convened to provide
recommendations with respect to the definition of a service area served
by a rural telephone company.
(2) The Commission shall issue a Public Notice of any such petition
within fourteen (14) days of its receipt.
(3) The Commission may initiate a proceeding to consider the
petition within ninety (90) days of the release date of the Public
Notice.
(i) If the Commission initiates a proceeding to consider the
petition, the proposed definition shall not take effect until both the
state commission and the Commission agree upon the definition of a rural
service area, in accordance with paragraph (b) of this section and
section 214(e)(5) of the Act.
(ii) If the Commission does not act on the petition within ninety
(90) days of the release date of the Public Notice, the definition
proposed by the state commission will be deemed approved by the
Commission and shall take effect in accordance with state procedures.
(d) The Commission may, on its own motion, initiate a proceeding to
consider a definition of a service area served by a rural telephone
company that is different from that company's study area. If it proposes
such different definition, the Commission shall seek the agreement of
the state commission according to this paragraph.
(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
[[Page 132]]
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 and ending December 31, 2011, 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. Beginning January
1, 2012 and ending June 30, 2012, a rate-of-return carrier, as that term
is defined in Sec. 54.5 of this chapter, that is 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
and is not affiliated with a price cap carrier, as that term is defined
in Sec. 61.3(aa) of this chapter, shall receive support for local
switching costs frozen at the same support level received for calendar
year 2011, subject to true-up. For purposes of this section, local
switching costs shall be defined as Category 3 local switching costs
under part 36 of this chapter. Beginning January 1, 2012, no carrier
that is a price cap carrier, as that term is defined in Sec. 61.3(aa)
of this chapter, or a rate-of-return carrier, as that term is defined in
Sec. 54.5 of this chapter, that is affiliated with a price cap carrier,
shall receive local switching support. Beginning July 1, 2012, no
carrier shall receive local switching support.
(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 lowered
weighted interstate DEM factor shall be applied to the study area's 1996
unweighted interstate DEM factor to derive a new local switching support
factor. If the number of a study area's access lines decreases or has
decreased such that, under Sec. 36.125(f) of this chapter, the weighted
interstate DEM factor for 2010 or any successive year would be raised,
that higher weighted interstate DEM factor shall be applied to the study
area'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. Until October 1, 2011,
each incumbent local exchange carrier that has been designated an
eligible telecommunications carrier and that serves a study area with
50,000 or fewer access lines shall, for each study area, provide the
Administrator with the projected total unseparated dollar amount
assigned to each account listed below for the calendar year following
each filing. This information must be provided to the Administrator no
later than October 1 of each year. The Administrator shall use this
information to calculate the projected annual unseparated local
switching revenue
[[Page 133]]
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 1410
Stock.
Materials and Supplies....... Account 1220.1
Cash Working Capital......... Defined in 47 CFR 65.820(d)
III
Accumulated Depreciation..... Account 3100
Accumulated Amortization..... Included in Accounts 2005, 2680, 2690,
3410
Net Deferred Operating Income Accounts 4100, 4340
Taxes.
Network Support Expenses..... Account 6110
General Support Expenses..... Account 6120
Central Office Switching, Accounts 6210, 6220, 6230
Operator Systems, and
Central Office Transmission
Expenses.
Information Origination/ Account 6310
Termination Expenses.
Cable and Wire Facilities Account 6410
Expenses.
Other Property, Plant and Account 6510
Equipment Expenses.
Network Operations Expenses.. Account 6530
Access Expense............... Account 6540
Depreciation and Amortization Account 6560
Expense.
Marketing Expense............ Account 6610
Services Expense............. Account 6620
Corporate Operations Expense. Account 6720
Operating Taxes.............. Accounts 7230, 7240
Federal Investment Tax Account 7210
Credits.
Provision for Deferred Account 7250
Operating Income Taxes-Net.
Allowance for Funds Used Included in Account 7300
During Construction.
Charitable Contributions..... Included in Account 7300
Interest and Related Items... Account 7500
IV
Other Non-Current Assets..... Included in Account 1410
Deferred Maintenance and Included in Account 1438
Retirements.
Deferred Charges............. Included in Account 1438
Other Jurisdictional Assets Accounts 1500, 4370
and Liabilities.
Customers' Deposits.......... Account 4040
Other Long-Term Liabilities.. Included in Account 4300
(c) Allocation of accounts to switching. The Administrator shall
allocate to local switching, the accounts reported pursuant to paragraph
(b) of this section as prescribed in this paragraph.
(1) General Support Assets (Account 2110); Amortizable Tangible
Assets (Account 2680); Intangibles (Account 2690); and General Support
Expenses (Account 6120) shall be allocated according to the following
factor:
[[Page 134]]
Account 2210 Category/3 (Account 2210 + Account 2220 + Account 2230 +
Account 2310 + Account 2410).
(2) Telecommunications Plant--Other (Accounts 2002, 2003, 2005);
Rural Telephone Bank (RTB) Stock (included in Account 1410); Materials
and Supplies (Account 1220.1); Cash Working Capital (Sec. 65.820(d) of
this chapter); Accumulated Amortization (Included in Accounts 2005,
2680, 2690, 3410); Net Deferred Operating Income Taxes (Accounts 4100,
4340); Network Support Expenses (Account 6110); Other Property, Plant
and Equipment Expenses (Account 6510); Network Operations Expenses
(Account 6530); Marketing Expense (Account 6610); Services Expense
(Account 6620); Operating Taxes (Accounts 7230, 7240); Federal
Investment Tax Credits (Accounts 7210); Provision for Deferred Operating
Income Taxes--Net (Account 7250); Interest and Related Items (Account
7500); Allowance for Funds Used During Construction (Included in Account
7300); Charitable Contributions (included in Account 7300); Other Non-
current Assets (Included in Account 1410); Other Jurisdictional Assets
and Liabilities (Accounts 1500, 4370); Customer Deposits (Account 4040);
Other Long-term Liabilities (Included in Account 4300); and Deferred
Maintenance and Retirements (Included in Account 1438) shall be
allocated according to the following factor:
Account 2210 Category 3 Account 2001.
(3) Accumulated Depreciation for Central Office--switching (Account
3100 associated with Account 2210) and Depreciation and Amortization
Expense for Central Office--switching (Account 6560 associated with
Account 2210) shall be allocated according to the following factor:
Account 2210 Category 3/Account 2210.
(4) Accumulated Depreciation for General Support Assets (Account
3100 associated with Account 2110) and Depreciation and Amortization
Expense for General Support Assets (Account 6560 associated with Account
2110) shall be allocated according to the following factor:
Account 2210 Category 3 / Account 2001.
(5) Corporate Operations Expenses (Account 6720) shall be allocated
according to the following factor:
[[Account 2210 Category 3 (Account 2210 + Account 2220 + Account 2230)]]
x (Account 6210 + Account 6220 + Account 6230)] + [(Account
6530 + Account 6610 + Account 6620) x (Account 2210 Category 3
Account 2001)] (Account 6210 + Account 6220 + Account 6230 +
Account 6310 + Account 6410 + Account 6530 + Account 6610 +
Account 6620).
(6) Central Office Switching, Operator Systems, and Central Office
Transmission Expenses (Account 6210, Account 6220, Account 6230) shall
be allocated according to the following factor:
Account 2210 Category 3 / (Accounts 2210 + 2220 + 2230).
(d) Calculation of the projected annual unseparated local switching
revenue requirement. The Administrator shall calculate the projected
annual unseparated local switching revenue requirement by summing the
components listed in this paragraph.
(1) Return on Investment attributable to COE Category 3 shall be
obtained by multiplying the average projected unseparated local
switching net investment by the authorized interstate rate of return.
Projected unseparated local switching net investment shall be calculated
as of each December 31 by deducting the accumulated reserves, deferrals
and customer deposits attributable to the COE Category 3 investment from
the gross investment attributable to COE Category 3. The average
projected unseparated local switching net investment shall be calculated
by summing the projected unseparated local switching net investment as
of December 31 of the calendar year following the filing year and such
investment as of December 31 of the filing year and dividing by 2.
(2) Depreciation expense attributable to COE Category 3 investment,
allocated pursuant to paragraph (c) of this section.
(3) All expenses, excluding depreciation expense, collected in
paragraph (b) of this section, allocated pursuant to paragraph (c) of
this section.
(4) Federal income tax attributable to COE Category 3 shall be
calculated
[[Page 135]]
using the following formula; the accounts listed shall be allocated
pursuant to paragraph (c) of this section:
[Return on Investment attributable to COE Category 3--Included in
Account 7300--Account 7500-Account 7210)] x [Federal Income
Tax Rate (1--Federal Income Tax Rate)].
(e) True-up adjustment--(1) Submission of true-up data. Until
December 31, 2012, 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.
[63 FR 2126, Jan. 13, 1998; 63 FR 33585, June 19, 1998, as amended at 67
FR 13226, Mar. 21, 2002; 67 FR 5701, Feb. 6, 2002; 75 FR 17874, Apr. 8,
2010; 76 FR 73870, Nov. 29, 2011; 77 FR 14302, Mar. 9, 2012]
Sec. 54.302 Monthly per-line limit on universal service support.
(a) Beginning July 1, 2012 and until June 30, 2013, each study
area's universal service monthly support (not including Connect America
Fund support provided pursuant to Sec. 54.304) on a per-line basis
shall not exceed $250 per-line plus two-thirds of the difference between
its uncapped per-line monthly support and $250. Beginning July 1, 2013
and until June 30, 2014, each study area's universal service monthly
support on a per-line basis shall not exceed $250 per-line plus one
third of the difference between its uncapped per-line monthly support
and $250. Beginning July 1, 2014, each study area's universal service
monthly per-line support shall not exceed $250.
(b) For purposes of this section, universal service support is
defined as the sum of the amounts calculated pursuant to Sec. Sec.
36.605 and 36.631, of this chapter and Sec. Sec. 54.301, 54.305, and
54.901 through .904. Line counts for purposes of this section shall be
as of the most recent line counts reported pursuant to Sec. 36.611(h)
of this chapter.
(c) The Administrator, in order to limit support to $250 for
affected carriers, shall reduce safety net additive support, high-cost
loop support, safety valve support, and interstate common line support
in proportion to the relative amounts of each support the study area
would receive absent such limitation.
[76 FR 73870, Nov. 29, 2011]
Sec. 54.304 Administration of Connect America Fund Intercarrier
Compensation Replacement.
(a) The Administrator shall administer CAF ICC support pursuant to
Sec. 51.915 and Sec. 51.917 of this chapter.
(b) The funding period is the period beginning July 1 through June
30 of the following year.
(c) For price cap carriers that are eligible and elect, pursuant to
Sec. 51.915(f) of this chapter, to receive CAF ICC support, the
following provisions govern the filing of data with the Administrator,
the Commission, and the relevant state commissions and the payment by
the Administrator to those carriers of CAF ICC support amounts that the
carrier is eligible to receive pursuant to Sec. 51.915 of this chapter.
(1) A price cap carrier seeking CAF ICC support pursuant to Sec.
51.915 of this
[[Page 136]]
chapter shall file data with the Administrator, the Commission, and the
relevant state commissions no later than June 30, 2012, for the first
year, and no later than March 31, in subsequent years, establishing the
amount of the price cap carrier's eligible CAF ICC funding during the
upcoming funding period pursuant to Sec. 51.915 of this chapter. The
amount shall include any true-ups, pursuant to Sec. 51.915 of this
chapter, associated with an earlier funding period.
(2) The Administrator shall monthly pay each price cap carrier one-
twelfth (1/12) of the amount the carrier is eligible to receive during
that funding period.
(d) For rate-of-return carriers that are eligible and elect,
pursuant to Sec. 51.917(f) of this chapter, to receive CAF ICC support,
the following provisions govern the filing of data with the
Administrator, the Commission, and the relevant state commissions and
the payment by the Administrator to those carriers of CAF ICC support
amounts that the rate-of-return carrier is eligible to receive pursuant
to Sec. 51.917 of this chapter.
(1) A rate-of-return carrier seeking CAF ICC support shall file data
with the Administrator, the Commission, and the relevant state
commissions no later than June 30, 2012, for the first year, and no
later than March 31, in subsequent years, establishing the rate-of-
return carrier's projected eligibility for CAF ICC funding during the
upcoming funding period pursuant to Sec. 51.917 of this chapter. The
projected amount shall include any true-ups, pursuant to Sec. 51.917 of
this chapter, associated with an earlier funding period.
(2) The Administrator shall monthly pay each rate-of-return carrier
one-twelfth (1/12) of the amount the carrier is to be eligible to
receive during that funding period.
[76 FR 73871, Nov. 29, 2011]
Sec. 54.305 Sale or transfer of exchanges.
(a) The provisions of this section are not applicable to the sale or
transfer of exchanges between non-rural carriers after the complete
phase-down of interim hold-harmless support, pursuant to Sec. 54.311,
for the non-rural carriers subject to the transaction. After December
31, 2011, the provisions of this section shall not be used to determine
support for any price cap incumbent local exchange carrier or a rate-of-
return carrier, as that term is defined in Sec. 54.5 that is affiliated
with a price cap incumbent local exchange carrier.
(b) Beginning January 1, 2012, any carrier subject to the provisions
of this paragraph shall receive support pursuant to this paragraph or
support based on the actual costs of the acquired exchanges, whichever
is less. Except as provided in paragraph (c) of this section, a carrier
that acquires telephone exchanges from an unaffiliated carrier shall
receive universal service support for the acquired exchanges at the same
per-line support levels for which those exchanges were eligible prior to
the transfer of the exchanges. If the acquired exchanges are
incorporated into an existing rural incumbent local exchange carrier
study area, the rural incumbent local exchange carrier shall maintain
the costs associated with the acquired exchanges separate from the costs
associated with its pre-acquisition study area. The transferred
exchanges may be eligible for safety valve support for loop related
costs pursuant to paragraph (d) of this section.
(c) A carrier that has entered into a binding agreement to buy or
acquire exchanges from an unaffiliated carrier prior to May 7, 1997 will
receive universal service support for the newly acquired lines based
upon the average cost of all of its lines, both those newly acquired and
those it had prior to execution of the sales agreement.
(d) Transferred exchanges in study areas operated by rural telephone
companies that are subject to the limitations on loop-related universal
service support in paragraph (b) of this section may be eligible for a
safety valve loop cost expense adjustment based on the difference
between the rural incumbent local exchange carrier's index year expense
adjustment and subsequent year loop cost expense adjustments for the
acquired exchanges. Safety valve loop cost expense adjustments shall
only be available to rural incumbent local exchange carriers that, in
the absence of restrictions on high-cost loop support in Sec.
54.305(b), would qualify for high-
[[Page 137]]
cost loop support for the acquired exchanges under Sec. 36.631 of this
chapter.
(1) For carriers that buy or acquire telephone exchanges on or after
January 10, 2005 from an unaffiliated carrier, the index year expense
adjustment for the acquiring carrier's first year of operation shall
equal the selling carrier's loop-related expense adjustment for the
transferred exchanges for the 12-month period prior to the transfer of
the exchanges. At the acquiring carrier's option, the first year of
operation for the transferred exchanges, for purposes of calculating
safety valve support, shall commence at the beginning of either the
first calendar year or the next calendar quarter following the transfer
of exchanges. For the first year of operation, a loop cost expense
adjustment, using the costs of the acquired exchanges submitted in
accordance with Sec. Sec. 36.611 and 36.612 of this chapter, shall be
calculated pursuant to Sec. 36.631 of this chapter and then compared to
the index year expense adjustment. Safety valve support for the first
period of operation will then be calculated pursuant to paragraph (d)(3)
of this section. The index year expense adjustment for years after the
first year of operation shall be determined using cost data for the
first year of operation of the transferred exchanges. Such cost data for
the first year of operation shall be calculated in accordance with
Sec. Sec. 36.611, 36.612 and 36.631 of this chapter. For each year,
ending on the same calendar quarter as the first year of operation, a
loop cost expense adjustment, using the loop costs of the acquired
exchanges, shall be submitted and calculated pursuant to Sec. Sec.
36.611, 36.612, and 36.631 of this chapter and will be compared to the
index year expense adjustment. Safety valve support for the second year
of operation and thereafter will then be calculated pursuant to
paragraph (d)(3) of this section.
(2) For carriers that bought or acquired exchanges from an
unaffiliated carrier before January 10, 2005, and are not subject to the
exception in paragraph (c) of this section, the index year expense
adjustment for acquired exchange(s) shall be equal to the rural
incumbent local exchange carrier's high-cost loop expense adjustment for
the acquired exchanges calculated for the carrier's first year of
operation of the acquired exchange(s). At the carrier's option, the
first year of operation of the transferred exchanges shall commence at
the beginning of either the first calendar year or the next calendar
quarter following the transfer of exchanges. The index year expense
adjustment shall be determined using cost data for the acquired
exchange(s) submitted in accordance with Sec. Sec. 36.611 and 36.612 of
this chapter and shall be calculated in accordance with Sec. 36.631 of
this chapter. The index year expense adjustment for rural telephone
companies that have operated exchanges subject to this section for more
than a full year on the effective date of this paragraph shall be based
on loop cost data submitted in accordance with Sec. 36.612 of this
chapter for the year ending on the nearest calendar quarter following
the effective date of this paragraph. For each subsequent year, ending
on the same calendar quarter as the index year, a loop cost expense
adjustment, using the costs of the acquired exchanges, will be
calculated pursuant to Sec. 36.631 of this chapter and will be compared
to the index year expense adjustment. Safety valve support is calculated
pursuant to paragraph (d)(3) of this section.
(3) Up to fifty (50) percent of any positive difference between the
transferred exchanges loop cost expense adjustment and the index year
expense adjustment will be designated as the transferred exchange's
safety valve loop cost expense adjustment and will be available in
addition to the per-line loop-related support transferred from the
selling carrier to the acquiring carrier pursuant to Sec. 54.305(b). In
no event shall a study area's safety valve loop cost expense adjustment
exceed the difference between the carrier's study area loop cost expense
adjustment calculated pursuant to Sec. 36.631 of this chapter and
transferred support amounts available to the acquired exchange(s) under
paragraph (b) of this section. Safety valve support shall not transfer
with acquired exchanges.
(e) The sum of the safety valve loop cost expense adjustment for all
eligible study areas operated by rural telephone companies shall not
exceed five
[[Page 138]]
(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 loop cost expense
adjustment of an individual rural incumbent local exchange carrier also
may be further reduced as described in paragraph (d)(3) of this section.
(f) Once an acquisition is complete, the acquiring rural incumbent
local exchange carrier shall provide written notice to the Administrator
that it has acquired access lines that may be eligible for safety valve
support. Rural telephone companies also shall provide written notice to
the Administrator defining their index year for those years after the
first year of operation for purposes of calculating the safety valve
loop cost expense adjustment.
[70 FR 10060, Mar. 2, 2005, as amended at 76 FR 73871, Nov. 29, 2011]
Sec. 54.307 Support to a competitive eligible telecommunications
carrier.
(a) Calculation of support. A competitive eligible
telecommunications carrier shall receive universal service support to
the extent that the competitive eligible telecommunications carrier
captures the subscriber lines of an incumbent local exchange carrier
(LEC) or serves new subscriber lines in the incumbent LEC's service
area.
(1) A competitive eligible telecommunications carrier serving loops
in the service area of a rural incumbent local exchange carrier, as that
term is defined in Sec. 54.5 of this chapter, shall receive support for
each line it serves in a particular service area based on the support
the incumbent LEC would receive for each such line, disaggregated by
cost zone if disaggregation zones have been established within the
service area pursuant to Sec. 54.315 of this subpart. A competitive
eligible telecommunications carrier serving loops in the service area of
a non-rural incumbent local exchange carrier shall receive support for
each line it serves in a particular wire center based on the support the
incumbent LEC would receive for each such line. A competitive eligible
telecommunications carrier serving loops in the service area of a rate-
of-return carrier shall be eligible to receive Interstate Common Line
Support for each line it serves in the service area in accordance with
the formula in Sec. 54.901.
(2) A competitive eligible telecommunications carrier that uses
switching purchased as unbundled network elements pursuant to Sec.
51.307 of this chapter to provide the supported services shall receive
the lesser of the unbundled network element price for switching or the
per-line DEM support of the incumbent LEC, if any. A competitive
eligible telecommunications carrier that uses loops purchased as
unbundled network elements pursuant to Sec. 51.307 of this chapter to
provide the supported services shall receive the lesser of the unbundled
network element price for the loop or the incumbent LEC's per-line
payment from the high-cost loop support, LTS, and Interstate Common Line
Support mechanisms, if any. The incumbent LEC providing
nondiscriminatory access to unbundled network elements to such
competitive eligible telecommunications carrier shall receive the
difference between the level of universal service support provided to
the competitive eligible telecommunications carrier and the per-customer
level of support that the incumbent LEC would have received.
(3) A competitive eligible telecommunications carrier that provides
the supported services using neither unbundled network elements
purchased pursuant to Sec. 51.307 of this chapter nor wholesale service
purchased pursuant
[[Page 139]]
to section 251(c)(4) of the Act will receive the full amount of
universal service support that the incumbent LEC would have received for
that customer.
(b) In order to receive support pursuant to this subpart, a
competitive eligible telecommunications carrier must report to the
Administrator the number of working loops it serves in a service area
pursuant to the schedule set forth in paragraph (c) of this section. For
a competitive eligible telecommunications carrier serving loops in the
service area of a rural incumbent local exchange carrier, as that term
is defined in Sec. 54.5, the carrier must report, by customer class,
the number of working loops it serves in the service area, disaggregated
by cost zone if disaggregation zones have been established within the
service area pursuant to Sec. 54.315. For a competitive eligible
telecommunications carrier serving loops in the service area of a non-
rural telephone company, the carrier must report the number of working
loops it serves in the service area, by customer class if the non-rural
telephone company receives Interstate Common Line Support pursuant to
Sec. 54.901 and by disaggregation zone if disaggregation zones have
been established within the service area pursuant to Sec. 54.315 of
this subpart, and the number of working loops it serves in each wire
center in the service area. For universal service support purposes,
working loops are defined as the number of working Exchange Line C&WF
loops used jointly for exchange and message telecommunications service,
including C&WF subscriber lines associated with pay telephones in C&WF
Category 1, but excluding WATS closed end access and TWX service.
Competitive eligible telecommunications carriers providing mobile
wireless service in an incumbent LEC's service area shall use the
customer's billing address for purposes of identifying the service
location of a mobile wireless customer in a service area.
(c) A competitive eligible telecommunications carrier must submit
the data required pursuant to paragraph (b) of this section according to
the schedule.
(1) No later than July 31st of each year, submit data as of December
31st of the previous calendar year;
(2) No later than September 30th of each year, submit data as of
March 31st of the existing calendar year;
(3) No later than December 30th of each year, submit data as of June
30th of the existing calendar year;
(4) No later than March 30th of each year, submit data as of
September 30th of the previous calendar year.
(d) Newly designated eligible telecommunications carriers.
Notwithstanding the deadlines in paragraph (c) of this section, a
carrier shall be eligible to receive support as of the effective date of
its designation as an eligible telecommunications carrier under section
214(e)(2) or (e)(6), provided that it submits the data required pursuant
to paragraph (b) of this section within 60 days of that effective date.
Thereafter, the eligible telecommunications carrier must submit the data
required in paragraph (b) of this section pursuant to the schedule in
paragraph (c) of this section.
(e) Support Beginning January 1, 2012. Competitive eligible
telecommunications carriers will, beginning January 1, 2012, receive
support based on the methodology described in this paragraph and not
based on paragraph (a) of this section.
(1) Baseline Support Amount. Each competitive eligible
telecommunication carrier will have a ``baseline support amount'' equal
to its total 2011 support in a given study area, or an amount equal to
$3,000 times the number of reported lines for 2011, whichever is lower.
Each competitive eligible telecommunications carrier will have a
``monthly baseline support amount'' equal to its baseline support amount
divided by twelve.
(i) ``Total 2011 support'' is the amount of support disbursed to a
competitive eligible telecommunication carrier for 2011, without regard
to prior period adjustments related to years other than 2011 and as
determined by the Administrator on January 31, 2012.
(ii) For the purpose of calculating the $3,000 per line limit, the
average of lines reported by a competitive eligible telecommunication
carrier pursuant to
[[Page 140]]
line count filings required for December 31, 2010, and December 31, 2011
shall be used. The $3,000 per line limit shall be applied to support
amounts determined for each incumbent study area served by the
competitive eligible telecommunications carrier.
(2) Monthly Support Amounts. Competitive eligible telecommunications
carriers shall receive the following support amounts, except as provided
in paragraphs (e)(3) through (e)(6) of this section.
(i) From January 1, 2012, to June 30, 2012, each competitive
eligible telecommunications carrier shall receive its monthly baseline
support amount each month.
(ii) From July 1, 2012 to June 30, 2013, each competitive eligible
telecommunications carrier shall receive 80 percent of its monthly
baseline support amount each month.
(iii) From July 1, 2013, to June 30, 2014, each competitive eligible
telecommunications carrier shall receive 60 percent of its monthly
baseline support amount each month.
(iv) From July 1, 2014, to June 30, 2015, each competitive eligible
telecommunications carrier shall receive 40 percent of its monthly
baseline support amount each month.
(v) From July 1, 2015, to June 30, 2016, each competitive eligible
telecommunications carrier shall receive 20 percent of its monthly
baseline support amount each month.
(vi) Beginning July 1, 2016, no competitive eligible
telecommunications carrier shall receive universal service support
pursuant to this section.
(3) Delayed Phase Down for Remote Areas in Alaska. Certain
competitive eligible telecommunications carriers serving remote areas in
Alaska shall have their support phased down on a later schedule than
that described in paragraph (e)(2) of this section.
(i) Remote Areas in Alaska. For the purpose of this paragraph,
``remote areas in Alaska'' includes all of Alaska except;
(A) The ACS-Anchorage incumbent study area;
(B) The ACS-Juneau incumbent study area;
(C) The fairbankszone1 disaggregation zone in the ACS-Fairbanks
incumbent study area; and
(D) The Chugiak 1 and 2 and Eagle River 1 and 2 disaggregation zones
of the Matunuska Telephone Association incumbent study area.
(ii) Carriers Subject to Delayed Phase Down. A competitive eligible
telecommunications carrier shall be subject to the delayed phase down
described in paragraph (e)(3) of this section to the extent that it
serves remote areas in Alaska, and it certified that it served covered
locations in its September 30, 2011, filing of line counts with the
Administrator. To the extent a competitive eligible telecommunications
carrier serving Alaska is not subject to the delayed phase down, it will
be subject to the phase down of support on the schedule described in
paragraph (e)(2) of this section.
(iii) Baseline for Delayed Phase Down. For purpose of the delayed
phase down for remote areas in Alaska, the baseline amount for each
competitive eligible telecommunications carrier subject to the delayed
phase down shall be the annualized monthly support amount received for
June 2014 or the last full month prior to the implementation of Mobility
Fund Phase II, whichever is later.
(iv) Monthly Support Amounts. Competitive eligible
telecommunications carriers subject to the delayed phase down for remote
areas in Alaska shall receive the following support amounts, except as
provided in paragraphs (e)(4) through (e)(6) of this section.
(A) From July 1, 2014 to June 30, 2015, each competitive eligible
telecommunications carrier shall receive 80 percent of its monthly
baseline support amount each month.
(B) From July 1, 2015, to June 30, 2016, each competitive eligible
telecommunications carrier shall receive 60 percent of its monthly
baseline support amount each month.
(C) From July 1, 2016, to June 30, 2017, each competitive eligible
telecommunications carrier shall receive 40 percent of its monthly
baseline support amount each month.
(D) From July 1, 2017, to June 30, 2018, each competitive eligible
telecommunications carrier shall receive
[[Page 141]]
20 percent of its monthly baseline support amount each month.
(E) Beginning July 1, 2018, no competitive eligible
telecommunications carrier serving remote areas in Alaska shall receive
universal service support pursuant to this section.
(v) Interim Support for Remote Areas in Alaska. From January 1,
2012, until June 30, 2014 or the last full month prior to the
implementation of Mobility Fund Phase II, whichever is later,
competitive eligible telecommunications carriers subject to the delayed
phase down for remote areas in Alaska shall continue to receive the
support, as calculated by the Administrator, that each competitive
telecommunications carrier would have received under the frozen per-line
support amount as of December 31, 2011 capped at $3,000 per year,
provided that the total amount of support for all such competitive
eligible telecommunications carriers shall be capped pursuant to
paragraph (e)(3)(v)(A) of this section.
(A) Cap Amount. The total amount of support available on an annual
basis for competitive eligible telecommunications carriers subject to
the delayed phase down for remote areas in Alaska shall be equal to the
sum of ``total 2011 support,'' as defined in paragraph (e)(1)(i) of this
section, received by all competitive eligible telecommunications
carriers subject to the delayed phase down for serving remote areas in
Alaska.
(B) Reduction Factor. To effectuate the cap, the Administrator shall
apply a reduction factor as necessary to the support that would
otherwise be received by all competitive eligible telecommunications
carriers serving remote areas in Alaska subject to the delayed phase
down. The reduction factor will be calculated by dividing the total
amount of support available amount by the total support amount
calculated for those carriers in the absence of the cap.
(4) Further reductions. If a competitive eligible telecommunications
carrier ceases to provide services to high-cost areas it had previously
served, the Commission may reduce its baseline support amount.
(5) Implementation of Mobility Fund Phase II Required. In the event
that the implementation of Mobility Fund Phase II has not occurred by
June 30, 2014, competitive eligible telecommunications carriers will
continue to receive support at the level described in paragraph
(e)(2)(iii) of this section until Mobility Fund Phase II is implemented.
In the event that Mobility Fund Phase II for Tribal lands is not
implemented by June 30, 2014, competitive eligible telecommunications
carriers serving Tribal lands shall continue to receive support at the
level described in paragraph (e)(2)(iii) of this section until Mobility
Fund Phase II for Tribal lands is implemented, except that competitive
eligible telecommunications carriers serving remote areas in Alaska and
subject to paragraph (e)(3) of this section shall continue to receive
support at the level described in paragraph (e)(3)(v) of this section.
(6) Eligibility after Implementation of Mobility Fund Phase II. If a
competitive eligible telecommunications carrier becomes eligible to
receive high-cost support pursuant to the Mobility Fund Phase II, it
will cease to be eligible for phase-down support in the first month for
which it receives Mobility Fund Phase II support.
(7) Line Count Filings. Competitive eligible telecommunications
carriers, except those subject to the delayed phase down described in
paragraph (e)(3) of this section, shall no longer be required to file
line counts beginning January 1, 2012. Competitive eligible
telecommunications carriers subject to the delayed phase down described
in paragraph (e)(3) of this section shall no longer be required to file
line counts beginning July 1, 2014, or the date after the first line
count filing following the implementation of Mobility Fund Phase II,
whichever is later.
[62 FR 32948, June 17, 1997, as amended at 63 FR 2128, Jan. 13, 1998; 64
FR 67431, Dec. 1, 1999; 65 FR 26516, May 8, 2000; 66 FR 30087, June 5,
2001; 66 FR 59726, Nov. 30, 2001; 68 FR 31623, May 28, 2003; 69 FR
34602, June 22, 2004; 70 FR 29979, May 25, 2005; 76 FR 73871, Nov. 29,
2011; 77 FR 14302, Mar. 9, 2012; 77 FR 30913, May 24, 2012; 77 FR 52618,
Aug. 30, 2012]
[[Page 142]]
Sec. 54.309 Calculation and distribution of forward-looking support
for non-rural carriers.
(a) Calculation of total support available per state. Beginning
January 1, 2000, non-rural incumbent local exchange carriers, and
eligible telecommunications carriers serving lines in the service areas
of non-rural incumbent local exchange carriers, shall receive universal
service support for the forward-looking economic costs of providing
supported services in high-cost areas, provided that the State in which
the lines served by the carrier are located has complied with the
certification requirements in Sec. 54.313. The total amount of forward-
looking support available in each State shall be determined according to
the following methodology:
(1) For each State, the Commission's cost model shall determine the
statewide average forward-looking economic cost (FLEC) per line of
providing the supported services. The statewide average FLEC per line
shall equal the total FLEC for non-rural carriers to provide the
supported services in the State, divided by the number of switched lines
used in the Commission's cost model. The total FLEC shall equal average
FLEC multiplied by the number of switched lines used in the Commission's
cost model.
(2) The Commission's cost model shall determine the national average
FLEC per line of providing the supported services. The national average
FLEC per line shall equal the total FLEC for non-rural carriers to
provide the supported services in all States, divided by the total
number of switched lines in all States used in the Commission's cost
model.
(3) The national cost benchmark shall equal two weighted standard
deviations above the national average FLEC per line.
(4) Support calculated pursuant to this section shall be provided to
non-rural carriers in each State where the statewide average FLEC per
line exceeds the national cost benchmark. The total amount of support
provided to non-rural carriers in each State where the statewide average
FLEC per line exceeds the national cost benchmark shall equal 76 percent
of the amount of the statewide average FLEC per line that exceeds the
national cost benchmark, multiplied by the number of lines reported
pursuant to Sec. Sec. 36.611,36.612, and 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. Sec. 36.611, 36.612,
[[Page 143]]
and 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. Sec. 36.611,36.612, and 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.
(d) Support after December 31, 2011. Beginning January 1, 2012, no
carrier shall receive support under this rule.
[64 FR 67431, Dec. 1, 1999, as amended at 65 FR 26516, May 8, 2000; 68
FR 69626, Dec. 15, 2003; 76 FR 73872, Nov. 29, 2011]
Sec. 54.312 Connect America Fund for Price Cap Territories--Phase I.
(a) Frozen High-Cost Support. Beginning January 1, 2012, each price
cap local exchange carrier and rate-of-return carrier affiliated with a
price cap local exchange carrier will have a ``baseline support amount''
equal to its total 2011 support in a given study area, or an amount
equal to $3,000 times the number of reported lines for 2011, whichever
is lower. For purposes of this section, price cap carriers are defined
pursuant to Sec. 61.3(aa) of this chapter and affiliated companies are
determined by Sec. 32.9000 of this chapter. Each price cap local
exchange carrier and rate-of-return carrier affiliated with a price cap
local exchange carrier will have a ``monthly baseline support amount''
equal to its baseline support amount divided by twelve. Beginning
January 1, 2012, on a monthly basis, eligible carriers will receive
their monthly baseline support amount.
(1) ``Total 2011 support'' is the amount of support disbursed to a
price cap local exchange carrier or rate-of-return carrier affiliated
with a price cap local exchange carrier for 2011, without regard to
prior period adjustments related to years other than 2011 and as
determined by USAC on January 31, 2012.
(2) For the purpose of calculating the $3,000 per line limit, the
average of lines reported by a price cap local exchange carrier or rate-
of-return carrier affiliated with a price cap local exchange carrier
pursuant to line count filings required for December 31, 2010, and
December 31, 2011 shall be used.
(3) A carrier receiving frozen high cost support under this rule
shall be deemed to be receiving Interstate Access Support and Interstate
Common Line Support equal to the amount of support the carrier to which
the carrier was eligible under those mechanisms in 2011.
(b) Incremental Support. Beginning January 1, 2012, support in
addition to baseline support defined in paragraph (a) of this section
will be available for certain price cap local exchange carriers and
rate-of-return carriers affiliated with price cap local exchange
carriers as follows.
(1) For each carrier for which the Wireline Competition Bureau
determines that it has appropriate data or for which it determines that
it can make reasonable estimates, the Bureau will determine an average
per-location
[[Page 144]]
cost for each wire center using a simplified cost-estimation function
derived from the Commission's cost model. Incremental support will be
based on the wire centers for which the estimated per-location cost
exceeds the funding threshold. The funding threshold will be determined
by calculating which funding threshold would allocate all available
incremental support, if each carrier that would be offered incremental
support were to accept it.
(2) An eligible telecommunications carrier accepting incremental
support must deploy broadband to a number of unserved locations, as
shown as unserved by fixed broadband on the then-current version of the
National Broadband Map, equal to the amount of incremental support it
accepts divided by $775.
(3) A carrier may elect to accept or decline incremental support. A
holding company may do so on a holding-company basis on behalf of its
operating companies that are eligible telecommunications carriers, whose
eligibility for incremental support, for these purposes, shall be
considered on an aggregated basis. A carrier must provide notice to the
Commission, relevant state commissions, and any affected Tribal
government, stating the amount of incremental support it wishes to
accept and identifying the areas by wire center and census block in
which the designated eligible telecommunications carrier will deploy
broadband to meet its deployment obligation, or stating that it declines
incremental support. Such notification must be made within 90 days of
being notified of any incremental support for which it would be
eligible. Along with its notification, a carrier accepting incremental
support must also submit a certification that the locations to be served
to satisfy the deployment obligation are not shown as served by fixed
broadband provided by any entity other than the certifying entity or its
affiliate on the then-current version of the National Broadband Map;
that, to the best of the carrier's knowledge, the locations are, in
fact, unserved by fixed broadband; that the carrier's current capital
improvement plan did not already include plans to complete broadband
deployment within the next three years to the locations to be counted to
satisfy the deployment obligation; and that incremental support will not
be used to satisfy any merger commitment or similar regulatory
obligation.
(4) An eligible telecommunications carrier must complete deployment
of broadband to two-thirds of the required number of locations within
two years of providing notification of acceptance of funding, and must
complete deployment to all required locations within three years. To
satisfy its deployment obligation, the eligible telecommunications
carrier must offer broadband service to such locations of at least 4
Mbps downstream and 1 Mbps upstream, with latency sufficiently low to
enable the use of real-time communications, including Voice over
Internet Protocol, and with usage caps, if any, that are reasonably
comparable to comparable offerings in urban areas.
[76 FR 73872, Nov. 29, 2011, as amended at 77 FR 31536, May 29, 2012]
Sec. 54.313 Annual reporting requirements for high-cost recipients.
(a) Any recipient of high-cost support shall provide:
(1) A progress report on its five-year service quality improvement
plan pursuant to Sec. 54.202(a), including maps detailing its progress
towards meeting its plan targets, an explanation of how much universal
service support was received and how it was used to improve service
quality, coverage, or capacity, and an explanation regarding any network
improvement targets that have not been fulfilled in the prior calendar
year. The information shall be submitted at the wire center level or
census block as appropriate;
(2) Detailed information on any outage in the prior calendar year,
as that term is defined in 47 CFR 4.5, of at least 30 minutes in
duration for each service area in which an eligible telecommunications
carrier is designated for any facilities it owns, operates, leases, or
otherwise utilizes that potentially affect
(i) At least ten percent of the end users served in a designated
service area; or
(ii) A 911 special facility, as defined in 47 CFR 4.5(e).
[[Page 145]]
(iii) Specifically, the eligible telecommunications carrier's annual
report must include information detailing:
(A) The date and time of onset of the outage;
(B) A brief description of the outage and its resolution;
(C) The particular services affected;
(D) The geographic areas affected by the outage;
(E) Steps taken to prevent a similar situation in the future; and
(F) The number of customers affected.
(3) The number of requests for service from potential customers
within the recipient's service areas that were unfulfilled during the
prior calendar year. The carrier shall also detail how it attempted to
provide service to those potential customers;
(4) The number of complaints per 1,000 connections (fixed or mobile)
in the prior calendar year;
(5) Certification that it is complying with applicable service
quality standards and consumer protection rules;
(6) Certification that the carrier is able to function in emergency
situations as set forth in Sec. 54.202(a)(2);
(7) The company's price offerings in a format as specified by the
Wireline Competition Bureau;
(8) The recipient's holding company, operating companies,
affiliates, and any branding (a ``dba,'' or ``doing-business-as
company'' or brand designation), as well as universal service
identifiers for each such entity by Study Area Codes, as that term is
used by the Administrator. For purposes of this paragraph,
``affiliates'' has the meaning set forth in section 3(2) of the
Communications Act of 1934, as amended;
(9) Beginning April 1, 2013. To the extent the recipient serves
Tribal lands, documents or information demonstrating that the ETC had
discussions with Tribal governments that, at a minimum, included:
(i) A needs assessment and deployment planning with a focus on
Tribal community anchor institutions;
(ii) Feasibility and sustainability planning;
(iii) Marketing services in a culturally sensitive manner;
(iv) Rights of way processes, land use permitting, facilities
siting, environmental and cultural preservation review processes; and
(v) Compliance with Tribal business and licensing requirements.
Tribal business and licensing requirements include business practice
licenses that Tribal and non-Tribal business entities, whether located
on or off Tribal lands, must obtain upon application to the relevant
Tribal government office or division to conduct any business or trade,
or deliver any goods or services to the Tribes, Tribal members, or
Tribal lands. These include certificates of public convenience and
necessity, Tribal business licenses, master licenses, and other related
forms of Tribal government licensure.
(10) Beginning July 1, 2013. A letter certifying that the pricing of
the company's voice services is no more than two standard deviations
above the applicable national average urban rate for voice service, as
specified in the most recent public notice issued by the Wireline
Competition Bureau and Wireless Telecommunications Bureau; and
(11) Beginning July 1, 2013. The results of network performance
tests pursuant to the methodology and in the format determined by the
Wireline Competition Bureau, Wireless Telecommunications Bureau, and
Office of Engineering and Technology and the information and data
required by this paragraphs (a)(1) through (7) of this section
separately broken out for both voice and broadband service.
(b) In addition to the information and certifications in paragraph
(a) of this section, any recipient of incremental CAF Phase I support
pursuant to Sec. 54.312(b) shall provide:
(1) In its next annual report due after two years after filing a
notice of acceptance of funding pursuant to Sec. 54.312(b), a
certification that the company has deployed to no fewer than two-thirds
of the required number of locations; and
(2) In its next annual report due after three years after filing a
notice of acceptance of funding pursuant to Sec. 54.312(b), a
certification that the company has deployed to all required locations
and that it is offering broadband service of at least 4 Mbps downstream
[[Page 146]]
and 1 Mbps upstream, with latency sufficiently low to enable the use of
real-time communications, including Voice over Internet Protocol, and
with usage caps, if any, that are reasonably comparable to those in
urban areas.
(c) In addition to the information and certifications in paragraph
(a) of this section, price cap carriers that receive frozen high-cost
support pursuant to Sec. 54.312(a) shall provide:
(1) By July 1, 2013. A certification that frozen high-cost support
the company received in 2012 was used consistent with the goal of
achieving universal availability of voice and broadband;
(2) By July 1, 2014. A certification that at least one-third of the
frozen-high cost support the company received in 2013 was used to build
and operate broadband-capable networks used to offer the provider's own
retail broadband service in areas substantially unserved by an
unsubsidized competitor;
(3) By July 1, 2015. A certification that at least two-thirds of the
frozen-high cost support the company received in 2014 was used to build
and operate broadband-capable networks used to offer the provider's own
retail broadband service in areas substantially unserved by an
unsubsidized competitor; and
(4) By July 1, 2016 and in subsequent years. A certification that
all frozen-high cost support the company received in the previous year
was used to build and operate broadband-capable networks used to offer
the provider's own retail broadband service in areas substantially
unserved by an unsubsidized competitor.
(d) In addition to the information and certifications in paragraph
(a) of this section, beginning July 1, 2013, price cap carriers
receiving high-cost support to offset reductions in access charges shall
provide a certification that the support received pursuant to Sec.
54.304 in the prior calendar year was used to build and operate
broadband-capable networks used to offer provider's own retail service
in areas substantially unserved by an unsubsidized competitor.
(e) In addition to the information and certifications in paragraph
(a) of this section, any recipient of CAF Phase II support shall
provide:
(1) In the calendar year no later than three years after
implementation of CAF Phase II. A certification that the company is
providing broadband service to 85% of its supported locations at actual
speeds of at least 4 Mbps downstream/1 Mbps upstream, with latency
suitable for real-time applications, including Voice over Internet
Protocol, and usage capacity that is reasonably comparable to comparable
offerings in urban areas as determined in an annual survey.
(2) In the calendar year no later than five years after
implementation of CAF Phase II. A certification that the company is
providing broadband service to 100% of its supported locations at actual
speeds of at least 4 Mbps downstream/1 Mbps upstream, and a percentage
of supported locations, to be specified by the Wireline Competition
Bureau, at actual speeds of at least 6 Mbps downstream/1.5 Mbps
upstream, with latency suitable for real-time applications, including
Voice over Internet Protocol, and usage capacity that is reasonably
comparable to comparable offerings in urban areas as determined in an
annual survey.
(3) Beginning July 1, 2014. A progress report on the company's five-
year service quality plan pursuant to Sec. 54.202(a), including the
following information:
(i) A letter certifying that it is meeting the interim deployment
milestones as set forth, and that it is taking reasonable steps to meet
increased speed obligations that will exist for all supported locations
at the expiration of the five-year term for CAF Phase II funding; and
(ii) The number, names, and addresses of community anchor
institutions to which the ETC newly began providing access to broadband
service in the preceding calendar year.
(f) In addition to the information and certifications in paragraph
(a) of this section, any rate-of-return carrier shall provide:
(1) Beginning July 1, 2014. A progress report on its five-year
service quality plan pursuant to Sec. 54.202(a) that includes the
following information:
(i) A letter certifying that it is taking reasonable steps to
provide upon
[[Page 147]]
reasonable request broadband service at actual speeds of at least 4 Mbps
downstream/1 Mbps upstream, with latency suitable for real-time
applications, including Voice over Internet Protocol, and usage capacity
that is reasonably comparable to comparable offerings in urban areas as
determined in an annual survey, and that requests for such service are
met within a reasonable amount of time; and
(ii) The number, names, and addresses of community anchor
institutions to which the ETC newly began providing access to broadband
service in the preceding calendar year.
(2) Privately held rate-of-return carriers only. A full and complete
annual report of the company's financial condition and operations as of
the end of the preceding fiscal year, which is audited and certified by
an independent certified public accountant in a form satisfactory to the
Commission, and accompanied by a report of such audit. The annual report
shall include balance sheets, income statements, and cash flow
statements along with necessary notes to clarify the financial
statements. The income statements shall itemize revenue, including non-
regulated revenue, by its sources. In lieu of filing this annual report,
any ETC that files annual financial reports with the Rural Utilities
Service may instead file a copy of its report to the Rural Utilities
Service.
(g) Areas with No Terrestrial Backhaul. Carriers without access to
terrestrial backhaul that are compelled to rely exclusively on satellite
backhaul in their study area must certify annually that no terrestrial
backhaul options exist. Any such funding recipients must certify they
offer broadband service at actual speeds of at least 1 Mbps downstream
and 256 kbps upstream within the supported area served by satellite
middle-mile facilities. To the extent that new terrestrial backhaul
facilities are constructed, or existing facilities improve sufficiently
to meet the relevant speed, latency and capacity requirements then in
effect for broadband service supported by the CAF, within twelve months
of the new backhaul facilities becoming commercially available, funding
recipients must provide the certifications required in paragraphs (e) or
(f) of this section in full. Carriers subject to this paragraph must
comply with all other requirements set forth in the remaining paragraphs
of this section.
(h) Additional voice rate data. (1) All incumbent local exchange
carrier recipients of high-cost support must report all of their rates
for residential local service for all portions of their service area, as
well as state fees as defined pursuant to Sec. 54.318(e), to the extent
the sum of those rates and fees are below the rate floor as defined in
Sec. 54.318, and the number of lines for each rate specified. Carriers
shall report lines and rates in effect as of June 1.
(2) In addition to the annual filing, local exchange carriers may
file updates of their rates for residential local service, as well as
state fees as defined pursuant to Sec. 54.318(e), on January 2 of each
year. If a local exchange carrier reduces its rates and the sum of the
reduced rates and state fees are below the rate floor as defined in
Sec. 54.318, the local exchange carrier shall file such an update. For
the update, carriers shall report lines and rates in effect as of
December 1.
(i) All reports pursuant to this section shall be filed with the
Office of the Secretary of the Commission clearly referencing WC Docket
No. 10-90, and with the Administrator, and the relevant state
commissions, relevant authority in a U.S. Territory, or Tribal
governments, as appropriate.
(j) Filing deadlines. In order for a recipient of high-cost support
to continue to receive support for the following calendar year, or
retain its eligible telecommunications carrier designation, it must
submit the annual reporting information required by this section no
later than July 1, 2012, except as otherwise specified in this section
to begin in a subsequent year, and thereafter annually by July 1 of each
year. Eligible telecommunications carriers that file their reports after
the July 1 deadline shall receive support pursuant to the following
schedule:
(1) Eligible telecommunication carriers that file no later than
October 1 shall receive support for the second, third and fourth
quarters of the subsequent year.
[[Page 148]]
(2) Eligible telecommunication carriers that file no later than
January 1 of the subsequent year shall receive support for the third and
fourth quarters of the subsequent year.
(3) Eligible telecommunication carriers that file no later than
April 1 of the subsequent year shall receive support for the fourth
quarter of the subsequent year.
(k) This section does not apply to recipients that solely receive
support from the Phase I Mobility Fund.
[76 FR 73873, Nov. 29, 2011, as amended at 77 FR 14302, Mar. 9, 2012; 77
FR 30914, May 24, 2012]
Effective Date Note 1: At 76 FR 73873, Nov. 29, 2011, Sec. 54.313
was revised. Paragraphs (a)(7) through (a)(11) and paragraphs (c)
through (g) contain information collection and recordkeeping
requirements and will not become effective until approval has been given
by the Office of Management and Budget.
Effective Date Note 2: At 77 FR 14302, Mar. 9, 2012, Sec. 54.313
was amended by revising paragraphs (a)(9) introductory text and (f)(2).
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.
Effective Date Note 3: At 77 FR 30914, May 24, 2012, Sec. 54.313
was amended by revising paragraph (h). Paragraph (h) contains
information collection and recordkeeping requirements and will not
become effective until approval has been given by the Office of
Management and Budget.
Sec. 54.314 Certification of support for eligible telecommunications
carriers.
(a) Certification. States that desire eligible telecommunications
carriers to receive support pursuant to the high-cost program 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 was used in the preceding calendar year and will be
used in the coming calendar year only for the provision, maintenance,
and upgrading of facilities and services for which the support is
intended. High-cost support 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. An eligible
telecommunications carrier not subject to the jurisdiction of a State
that desires to receive support pursuant to the high-cost program must
file an annual certification with the Administrator and the Commission
stating that all federal high-cost support provided to such carrier was
used in the preceding calendar year and will be used in the coming
calendar year only for the provision, maintenance, and upgrading of
facilities and services for which the support is intended. Support
provided pursuant to the high-cost program shall only be provided to the
extent that the carrier has filed the requisite certification pursuant
to this section.
(c) Certification format. (1) 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 WC Docket
No. 10-90, and with the Administrator of the high-cost 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 only used support
during the preceding calendar year and will only use support in the
coming calendar year 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.
(2) An eligible telecommunications carrier not subject to the
jurisdiction of a State shall file a sworn affidavit executed by a
corporate officer attesting that the carrier only used support during
the preceding calendar year and will only use support in the coming
calendar year for the provision, maintenance, and upgrading of
facilities and services for which support is intended.
[[Page 149]]
The affidavit must be filed with both the Office of the Secretary of the
Commission clearly referencing WC Docket No. 10-90, 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 an eligible telecommunications
carrier to receive federal high-cost support, the State or the carrier,
if not subject to the jurisdiction of a State, must file an annual
certification, as described in paragraph (c) of this section, with both
the Administrator and the Commission. Upon the filing of the
certification described in this section, support shall be provided in
accordance with the following schedule:
(1) Certifications filed on or before October 1. Carriers subject to
certifications filed on or before October 1 shall receive support in the
first, second, third, and fourth quarters of the succeeding year.
(2) Certifications filed on or before January 1. Carriers subject to
certifications filed on or before January 1 shall receive support in the
second, third, and fourth quarters of that year. Such carriers shall not
receive support in the first quarter of that year.
(3) Certifications filed on or before April 1. Carriers subject to
certifications filed on or before April 1 shall receive support in the
third and fourth quarters of that year. Such carriers shall not receive
support in the first or second quarters of that year.
(4) Certifications filed on or before July 1. Carriers subject to
certifications filed on or before July 1 shall receive support beginning
in the fourth quarter of that year. Such carriers shall not receive
support in the first, second, or third quarters of that year.
(5) Certifications filed after July 1. Carriers subject to
certifications filed after July 1 shall not receive support in that
year.
(6) Newly designated eligible telecommunications carriers.
Notwithstanding the deadlines in paragraph (d) of this section, a
carrier shall be eligible to receive support as of the effective date of
its designation as an eligible telecommunications carrier under section
214(e)(2) or (e)(6) of the Act, provided that it files the certification
described in paragraph (b) of this section or the state commission files
the certification described in paragraph (a) of this section within 60
days of the effective date of the carrier's designation as an eligible
telecommunications carrier. Thereafter, the certification required by
paragraphs (a) or (b) of this section must be submitted pursuant to the
schedule in paragraph (d) of this section.
[76 FR 73875, Nov. 29, 2011]
Sec. 54.318 High-cost support; limitations on high-cost support.
(a) Beginning July 1, 2012, each carrier receiving high-cost support
in a study area under this subpart will receive the full amount of high-
cost support it otherwise would be entitled to receive if its rates for
residential local service plus state regulated fees as defined in
paragraph (e) of this section exceed a local urban rate floor
representing the national average of local urban rates plus state
regulated fees under the schedule specified in paragraph (f) of this
section.
(b) Carriers whose rates for residential local service plus state
regulated fees offered for voice service are below the specified local
urban rate floor under the schedule below plus state regulated fees
shall have high-cost support reduced by an amount equal to the extent to
which its rates for residential local service plus state regulated fees
are below the local urban rate floor, multiplied by the number of lines
for which it is receiving support.
(c) This rule will apply only to rate-of-return carriers as defined
in Sec. 54.5 and carriers subject to price cap regulation as that term
is defined in Sec. 61.3 of this chapter.
(d) For purposes of this section, high-cost support is defined as
the support available pursuant to Sec. 36.631 of this chapter and
frozen high-cost support provided to price cap carriers to the extent it
is based on support previously provided pursuant to Sec. 36.631 or
Sec. 54.309 of this chapter.
[[Page 150]]
(e) State regulated fees. (1) Beginning on July 1, 2012, for
purposes of calculating limitations on high-cost support under this
section, state regulated fees shall be limited to state subscriber line
charges, state universal service fees and mandatory extended area
service charges, which shall be determined as part of a local rate
survey, the results of which shall be published annually.
(2) Federal subscriber line charges shall not be included in
calculating limitations on high-cost support under this section.
(f) Schedule. High-cost support will be limited where the rate for
residential local service plus state regulated fees are below the local
urban rate floor representing the national average of local urban rates
plus state regulated fees under the schedule specified in this
paragraph. To the extent end user rates plus state regulated fees are
below local urban rate floors plus state regulated fees, appropriate
reductions in high-cost support will be made by the Universal Service
Administrative Company.
(g) Any reductions in high-cost support under this section will not
be redistributed to other carriers that receive support pursuant to
Sec. 36.631 of this chapter.
(h) If, due to changes in local service rates, a local exchange
carrier makes an updated rate filing pursuant to section 54.313(h)(2),
the Universal Service Administrative Company will update the support
reduction applied pursuant to paragraphs (b) and (f) of this section.
(i) For the purposes of this section and the reporting of rates
pursuant to paragraph 313(h), rates for residential local service
provided pursuant to measured or message rate plans or as part of a
bundle of services should be calculated as follows:
(1) Rates for measured or message service shall be calculated by
adding the basic rate for local service plus the additional charges
incurred for measured service, using the mean number of minutes or
message units for all customers subscribing to that rate plan multiplied
by the applicable rate per minute or message unit. The local service
rate includes additional charges for measured service only to the extent
that the average number of units used by subscribers to that rate plan
exceeds the number of units that are included in the plan. Where
measured service plans have multiple rates for additional units, such as
peak and off-peak rates, the calculation should reflect the average
number of units that subscribers to the rate plan pay at each rate.
(2) For bundled service, the residential local service rate is the
local service rate as tariffed, if applicable, or as itemized on end-
user bills. If a carrier neither tariffs nor itemizes the local voice
service rate on bills for bundled services, the local service rate is
the rate of a similar stand-alone local voice service that it offers to
consumers in that study area.
[76 FR 73876, Nov. 29, 2011, as amended at 77 FR 14302, Mar. 9, 2012; 77
FR 30914, May 24, 2012]
Sec. 54.320 Compliance and recordkeeping for the high-cost program.
(a) Eligible telecommunications carriers authorized to receive
universal service high-cost support are subject to random compliance
audits and other investigations to ensure compliance with program rules
and orders.
(b) All eligible telecommunications carriers shall retain all
records required to demonstrate to auditors that the support received
was consistent with the universal service high-cost program rules. This
documentation must be maintained for at least ten years from the receipt
of funding. All such documents shall be made available upon request to
the Commission and any of its Bureaus or Offices, the Administrator, and
their respective auditors.
(c) Eligible telecommunications carriers authorized to receive high-
cost support that fail to comply with public interest obligations or any
other terms and conditions may be subject to further action, including
the Commission's existing enforcement procedures and penalties,
reductions in support amounts, potential revocation of ETC designation,
and suspension or debarment pursuant to Sec. 54.8.
[76 FR 73876, Nov. 29, 2011]
[[Page 151]]
Subpart E_Universal Service Support for Low-Income Consumers
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 service. ``Toll blocking service'' is a service
provided by an eligible telecommunications carrier that lets subscribers
elect not to allow the completion of outgoing toll calls from their
telecommunications channel.
(c) Toll control service. ``Toll control service'' is a service
provided by an eligible telecommunications carrier that allows
subscribers 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 service. ``Toll limitation service'' denotes
either toll blocking service or toll control service for eligible
telecommunications carriers that are incapable of providing both
services. For eligible telecommunications carriers that are capable of
providing both services, ``toll limitation service'' denotes both toll
blocking service and toll control service.
(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 Tribal lands. For purposes of
this subpart, ``Tribal lands'' include any federally recognized Indian
tribe's reservation, pueblo, or colony, including former reservations in
Oklahoma; Alaska Native regions established pursuant to the Alaska
Native Claims Settlement Act (85 Stat. 688); Indian allotments; Hawaiian
Home Lands--areas held in trust for Native Hawaiians by the state of
Hawaii, pursuant to the Hawaiian Homes Commission Act, 1920 July 9,
1921, 42 Stat. 108, et. seq., as amended; and any land designated as
such by the Commission for purposes of this subpart pursuant to the
designation process in Sec. 54.412.
(f) Income. ``Income'' is all income actually received by all
members of a household. This includes salary before deductions for
taxes, public assistance benefits, social security payments, pensions,
unemployment compensation, veteran's benefits, inheritances, alimony,
child support payments, worker's compensation benefits, gifts, lottery
winnings, and the like. The only exceptions are student financial aid,
military housing and cost-of-living allowances, irregular income from
occasional small jobs such as baby-sitting or lawn mowing, and the like.
(g) Duplicative support. ``Duplicative support'' exists when a
Lifeline subscriber is receiving two or more Lifeline services
concurrently or two or more subscribers in a household are receiving
Lifeline services or Tribal Link Up support concurrently.
(h) Household. A ``household'' is any individual or group of
individuals who are living together at the same address as one economic
unit. A household may include related and unrelated persons. An
``economic unit'' consists of all adult individuals contributing to and
sharing in the income and expenses of a household. An adult is any
person eighteen years or older. If an adult has no or minimal income,
and lives with someone who provides financial support to him/her, both
people shall be considered part of the same household. Children under
the age of eighteen living with their parents or guardians are
considered to be part of the same household as their parents or
guardians.
(i) National Lifeline Accountability Database or Database. The
``National Lifeline Accountability Database'' or ``Database'' is an
electronic system, with associated functions, processes, policies and
procedures, to facilitate the detection and elimination of duplicative
support, as directed by the Commission.
(j) Qualifying assistance program. A ``qualifying assistance
program'' means any of the federal, state, or Tribal assistance programs
participation in which, pursuant to Sec. 54.409(a) or (b), qualifies a
consumer for Lifeline service, including Medicaid; Supplemental
Nutrition Assistance Program; Supplemental Security Income; Federal
Public Housing Assistance (Section 8); Low-Income Home Energy Assistance
[[Page 152]]
Program; National School Lunch Program's free lunch program; Temporary
Assistance for Needy Families; Bureau of Indian Affairs general
assistance; Tribally administered Temporary Assistance for Needy
Families (Tribal TANF); Head Start (only those households meeting its
income qualifying standard); or the Food Distribution Program on Indian
Reservations (FDPIR), and with respect to the residents of any
particular state, any other program so designated by that state pursuant
to Sec. 54.409(a).
[77 FR 12966, Mar. 2, 2012]
Sec. 54.401 Lifeline defined.
(a) As used in this subpart, Lifeline means a non-transferable
retail service offering:
(1) 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
(2) That provides qualifying low-income consumers with voice
telephony service as specified in Sec. 54.101(a). Toll limitation
service does not need to be offered for any Lifeline service that does
not distinguish between toll and non-toll calls in the pricing of the
service. If an eligible telecommunications carrier charges Lifeline
subscribers a fee for toll calls that is in addition to the per month or
per billing cycle price of the subscribers' Lifeline service, the
carrier must offer toll limitation service at no charge to its
subscribers as part of its Lifeline service offering.
(b) Eligible telecommunications carriers may allow qualifying low-
income consumers to apply Lifeline discounts to any residential service
plan that includes voice telephony service, including bundled packages
of voice and data services; and plans that include optional calling
features such as, but not limited to, caller identification, call
waiting, voicemail, and three-way calling. Eligible telecommunications
carriers may also permit qualifying low-income consumers to apply their
Lifeline discount to family shared calling plans.
(c) Eligible telecommunications carriers may not collect a service
deposit in order to initiate Lifeline service for plans that:
(1) Do not charge subscribers additional fees for toll calls; or
(2) That charge additional fees for toll calls, but the subscriber
voluntarily elects toll limitation service.
(d) When an eligible telecommunications carrier is designated by a
state commission, 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 describing the terms and
conditions of any voice telephony service plans offered to Lifeline
subscribers, including details on the number of minutes provided as part
of the plan, additional charges, if any, for toll calls, and rates for
each such plan. To the extent the eligible telecommunications carrier
offers plans to Lifeline subscribers that are generally available to the
public, it may provide summary information regarding such plans, such as
a link to a public Web site outlining the terms and conditions of such
plans. Lifeline assistance shall be made available to qualifying low-
income consumers as soon as the Administrator certifies that the
carrier's Lifeline plan satisfies the criteria set out in this subpart.
(e) Consistent with Sec. 52.33(a)(1)(i)(C) of this chapter,
eligible telecommunications carriers may not charge Lifeline customers a
monthly number-portability charge.
[77 FR 12967, Mar. 2, 2012]
Sec. 54.403 Lifeline support amount.
(a) The federal Lifeline support amount for all eligible
telecommunications carriers shall equal:
(1) Basic support amount. Federal Lifeline support in the amount of
$9.25 per month will be made available to an eligible telecommunications
carrier providing Lifeline service to a qualifying low-income consumer,
if that carrier certifies to the Administrator that it will pass through
the full amount of support to the qualifying low-income consumer and
that it has received any non-federal regulatory approvals necessary to
implement the rate reduction.
(2) Tribal lands support amount. Additional federal Lifeline support
of up to
[[Page 153]]
$25 per month will be made available to an eligible telecommunications
carrier providing Lifeline service to an eligible resident of Tribal
lands, as defined in Sec. 54.400 (e), to the extent that the eligible
telecommunications carrier certifies to the Administrator that it will
pass through the full Tribal lands support amount to the qualifying
eligible resident of Tribal lands and that it has received any non-
federal regulatory approvals necessary to implement the required rate
reduction.
(b) Application of Lifeline discount amount. (1) Eligible
telecommunications carriers that charge federal End User Common Line
charges or equivalent federal charges must apply federal Lifeline
support to waive the federal End User Common Line charges for Lifeline
subscribers. Such carriers must 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 must apply the federal Lifeline support amount, plus any
additional support amount, to reduce the cost of any generally available
residential service plan or package offered by such carriers that
provides voice telephony service as described in Sec. 54.101, and
charge Lifeline subscribers the resulting amount.
(2) Where a subscriber makes only a partial payment to an eligible
telecommunications carrier for a bundled service package, the eligible
telecommunications carrier must apply the partial payment first to the
allocated price of the voice telephony service component of the package
and then to the cost of any additional services included in the bundled
package.
(c) Toll limitation service. An eligible telecommunications carrier
providing toll limitation service voluntarily elected by Lifeline
subscribers whose Lifeline plans would otherwise include a fee for
placing a toll call that would be in addition to the per month or per
billing cycle price of the subscriber's Lifeline service, shall, for
April 2012 Lifeline disbursements through December 2013 Lifeline
disbursements, receive support in an amount equal to the lesser of:
(1) The eligible telecommunications carrier's incremental cost of
providing either toll blocking services or toll control services to each
Lifeline subscriber who has selected such service; or
(2) The following amounts for each Lifeline subscriber who has
selected toll blocking services or toll control services:
(i) $3.00 per month per subscriber during 2012; and
(ii) $2.00 per month per subscriber during 2013.
[77 FR 12967, Mar. 2, 2012]
Sec. 54.404 The National Lifeline Accountability Database.
(a) State certification. An eligible telecommunications carrier
operating in a state that provides an approved valid certification to
the Commission in accordance with this section is not required to comply
with the requirements set forth in paragraphs (b) and (c) of this
section with respect to the eligible telecommunications carriers'
subscribers in that state. A valid certification must include a
statement that the state has a comprehensive system in place to prevent
duplicative federal Lifeline support that is at least as robust as the
system adopted by the Commission and that incorporates information from
all eligible telecommunications carriers receiving low-income support in
the state and their subscribers. A valid certification must also
describe in detail how the state system functions and for each
requirement adopted by the Commission to prevent duplicative support,
how the state system performs the equivalent functions. The
certification must be submitted to the Commission no later than six
months from the effective date of this section of the Commission's rules
to be valid. Such certification will be considered approved unless the
Wireline Competition Bureau rejects the certification within 90 days of
filing.
(b) The National Lifeline Accountability Database. In order to
receive Lifeline support, eligible telecommunications carriers operating
in states that have
[[Page 154]]
not provided the Commission with approved valid certification pursuant
to paragraph (a) of this section must comply with the following
requirements:
(1) All eligible telecommunications carriers must query the National
Lifeline Accountability Database to determine whether a prospective
subscriber who has executed a certification pursuant to Sec. 54.410(d)
is currently receiving a Lifeline service from another eligible
telecommunications carrier; and whether anyone else living at the
prospective subscriber's residential address is currently receiving a
Lifeline service.
(2) If the Database indicates that a prospective subscriber, who is
not seeking to port his or her telephone number, is currently receiving
a Lifeline service, the eligible telecommunications carrier must not
provide and shall not seek or receive Lifeline reimbursement for that
subscriber.
(3) If the Database indicates that another individual at the
prospective subscriber's residential address is currently receiving a
Lifeline service, the eligible telecommunications carrier must not seek
and will not receive Lifeline reimbursement for providing service to
that prospective subscriber, unless the prospective subscriber has
certified, pursuant to Sec. 54.410(d) that to the best of his or her
knowledge, no one in his or her household is already receiving a
Lifeline service.
(4) An eligible telecommunications carrier is not required to comply
with paragraphs (b)(1) through (3) of this section if it receives notice
from a state Lifeline administrator or other state agency that the
administrator or other agency has queried the Database about a
prospective subscriber and that providing the prospective subscriber
with a Lifeline benefit would not result in duplicative support.
(5) Eligible telecommunications carriers may query the Database only
for the purposes provided in paragraphs (b)(1) through (b)(3) of this
section, and to determine whether information with respect to its
subscribers already in the Database is correct and complete.
(6) Eligible telecommunications carriers must transmit to the
Database in a format prescribed by the Administrator each new and
existing Lifeline subscriber's full name; full residential address; date
of birth and the last four digits of the subscriber's Social Security
number or Tribal Identification number, if the subscriber is a member of
a Tribal nation and does not have a Social Security number; the
telephone number associated with the Lifeline service; the date on which
the Lifeline service was initiated; the date on which the Lifeline
service was terminated, if it has been terminated; the amount of support
being sought for that subscriber; and the means through which the
subscriber qualified for Lifeline.
(7) In the event that two or more eligible telecommunications
carriers transmit the information required by this paragraph to the
Database for the same subscriber, only the eligible telecommunications
carrier whose information was received and processed by the Database
first, as determined by the Administrator, will be entitled to
reimbursement from the Fund for that subscriber.
(8) All eligible telecommunications carriers must update an existing
Lifeline subscriber's information in the Database within ten business
days of receiving any change to that information, except as described in
paragraph (b)(10) of this section.
(9) All eligible telecommunications carriers must obtain, from each
new and existing subscriber, consent to transmit the subscriber's
information. Prior to obtaining consent, the eligible telecommunications
carrier must describe to the subscriber, using clear, easily understood
language, the specific information being transmitted, that the
information is being transmitted to the Administrator to ensure the
proper administration of the Lifeline program, and that failure to
provide consent will result in subscriber being denied the Lifeline
service.
(10) When an eligible telecommunications carrier de-enrolls a
subscriber, it must transmit to the Database the date of Lifeline
service de-enrollment within one business day of de-enrollment.
(c) Tribal Link Up and the National Lifeline Accountability
Database. In order to receive universal service support reimbursement
for Tribal Link
[[Page 155]]
Up, eligible telecommunications carriers operating in states that have
not provided the Commission with a valid certification pursuant to
paragraph (a) of this section, must comply with the following
requirements:
(1) Such eligible telecommunications carriers must query the
Database to determine whether a prospective Link Up recipient who has
executed a certification pursuant to Sec. 54.410(d) has previously
received a Link Up benefit at the residential address provided by the
prospective subscriber.
(2) If the Database indicates that a prospective subscriber has
received a Link Up benefit at the residential address provided by the
subscriber, the eligible telecommunications provider must not seek Link
Up reimbursement for that subscriber.
(3) An eligible telecommunications carrier is not required to comply
with paragraphs (c)(1) through (c)(2) of this section, if it receives
notice from a state Lifeline administrator or other state agency that
the administrator or other agency has queried the Database about a
prospective subscriber and that providing the prospective subscriber
with a Link Up benefit would not result in duplicative support or
support to a subscriber who had already received Link Up support at that
residential address.
(4) All eligible telecommunications carriers must transmit to the
Database in a format prescribed by the Administrator each new and
existing Link Up recipient's full name; residential address; date of
birth; and the last four digits of the subscriber's Social Security
number, or Tribal identification number if the subscriber is a member of
a Tribal nation and does not have a Social Security number; the
telephone number associated with the Link Up support; and the date of
service activation. Where two or more eligible telecommunications
carriers transmit the information required by this paragraph to the
Database for the same subscriber, only the eligible telecommunications
carrier whose information was received and processed by the Database
first, as determined by the Administrator, will be entitled to
reimbursement from the Fund for that subscriber.
(5) All eligible telecommunications carriers must obtain, from each
new and existing subscriber, consent to transmit the information
required in paragraph (c) of this section. Prior to obtaining consent,
the eligible telecommunications carrier must describe to the subscriber,
using clear, easily understood language, the specific information being
transmitted, that the information is being transmitted to the
Administrator to ensure the proper administration of the Link Up
program, and that failure to provide consent will result in the
subscriber being denied the Link Up benefit.
[77 FR 12968, Mar. 2, 2012]
Sec. 54.405 Carrier obligation to offer Lifeline.
All eligible telecommunications carriers must:
(a) Make available Lifeline service, as defined in Sec. 54.401, to
qualifying low-income consumers.
(b) Publicize the availability of Lifeline service in a manner
reasonably designed to reach those likely to qualify for the service.
(c) Indicate on all materials describing the service, using easily
understood language, that it is a Lifeline service, that Lifeline is a
government assistance program, the service is non-transferable, only
eligible consumers may enroll in the program, and the program is limited
to one discount per household. For the purposes of this section, the
term ``materials describing the service'' includes all print, audio,
video, and web materials used to describe or enroll in the Lifeline
service offering, including application and certification forms.
(d) Disclose the name of the eligible telecommunications carrier on
all materials describing the service.
(e) De-enrollment--(1) De-enrollment generally. If an eligible
telecommunications carrier has a reasonable basis to believe that a
Lifeline subscriber no longer meets the criteria to be considered a
qualifying low-income consumer under Sec. 54.409, the carrier must
notify the subscriber of impending termination of his or her Lifeline
service. Notification of impending termination must be sent in writing
separate from the subscriber's monthly bill, if one is
[[Page 156]]
provided, and must be written in clear, easily understood language. A
carrier providing Lifeline service in a state that has dispute
resolution procedures applicable to Lifeline termination, that requires,
at a minimum, written notification of impending termination, must comply
with the applicable state requirements. The carrier must allow a
subscriber 30-days following the date of the impending termination
letter required to demonstrate continued eligibility. A subscriber
making such a demonstration must present proof of continued eligibility
to the carrier consistent with applicable annual re-certification
requirements, as described in Sec. 54.410(f). An eligible
telecommunications carrier must terminate any subscriber who fails to
demonstrate continued eligibility within the 30-day time period. A
carrier providing Lifeline service in a state that has dispute
resolution procedures applicable to Lifeline termination must comply
with the applicable state requirements.
(2) De-enrollment for duplicative support. Notwithstanding paragraph
(e)(1) of this section, upon notification by the Administrator to any
eligible telecommunications carrier that a subscriber is receiving
Lifeline service from another eligible telecommunications carrier or
that more than one member of a subscriber's household is receiving
Lifeline service and therefore that the subscriber should be de-enrolled
from participation in that carrier's Lifeline program, the eligible
telecommunications carrier must de-enroll the subscriber from
participation in that carrier's Lifeline program within five business
days. An eligible telecommunications carrier shall not be eligible for
Lifeline reimbursement for any de-enrolled subscriber following the date
of that subscriber's de-enrollment.
(3) De-enrollment for non-usage. Notwithstanding paragraph (e)(1) of
this section, if a Lifeline subscriber fails to use, as ``usage'' is
defined in Sec. 54.407(c)(2), for 60 consecutive days a Lifeline
service that does not require the eligible telecommunications carrier to
assess or collect a monthly fee from its subscribers, an eligible
telecommunications carrier must provide the subscriber 30 days' notice,
using clear, easily understood language, that the subscriber's failure
to use the Lifeline service within the 30-day notice period will result
in service termination for non-usage under this paragraph. If the
subscriber uses the Lifeline service within 30 days of the carrier
providing such notice, the eligible telecommunications carrier shall not
terminate the subscriber's Lifeline service. Eligible telecommunications
carriers shall report to the Commission annually the number of
subscribers de-enrolled for non-usage under this paragraph. This de-
enrollment information must be reported by month and must be submitted
to the Commission at the time an eligible telecommunications carrier
submits its annual certification report pursuant to Sec. 54.416.
(4) De-enrollment for failure to re-certify. Notwithstanding
paragraph (e)(1) of this section, an eligible telecommunications carrier
must de-enroll a Lifeline subscriber who does not respond to the
carrier's attempts to obtain re-certification of the subscriber's
continued eligibility as required by Sec. 54.410(f); who fails to
provide the annual one-per-household re-certifications as required by
Sec. 54.410(f); or who relies on a temporary address and fails to
respond to the carrier's address re-certification attempts pursuant to
Sec. 54.410(g). Prior to de-enrolling a subscriber under this
paragraph, the eligible telecommunications carrier must notify the
subscriber in writing separate from the subscriber's monthly bill, if
one is provided using clear, easily understood language, that failure to
respond to the re-certification request within 30 days of the date of
the request will trigger de-enrollment. If a subscriber does not respond
to the carrier's notice of impending de-enrollment, the carrier must de-
enroll the subscriber from Lifeline within five business days after the
expiration of the subscriber's time to respond to the re-certification
efforts.
[77 FR 12969, Mar. 2, 2012]
Sec. 54.407 Reimbursement for offering Lifeline.
(a) Universal service support for providing Lifeline shall be
provided directly to an eligible telecommunications carrier, based on
the number of
[[Page 157]]
actual qualifying low-income consumers it serves.
(b) An eligible telecommunications carrier may receive universal
service support reimbursement for each qualifying low-income consumer
served. For each qualifying low-income consumer receiving Lifeline
service, the reimbursement amount shall equal the federal support
amount, including the support amounts described in Sec. 54.403(a) and
(c). The eligible telecommunications carrier's universal service support
reimbursement shall not exceed the carrier's rate for that offering, or
similar offerings, subscribed to by consumers who do not qualify for
Lifeline.
(c) An eligible telecommunications carrier offering a Lifeline
service that does not require the eligible telecommunications carrier to
assess or collect a monthly fee from its subscribers:
(1) Shall not receive universal service support for a subscriber to
such Lifeline service until the subscriber activates the service by
whatever means specified by the carrier, such as completing an outbound
call; and
(2) After service activation, an eligible telecommunications carrier
shall only continue to receive universal service support reimbursement
for such Lifeline service provided to subscribers who have used the
service within the last 60 days, or who have cured their non-usage as
provided for in Sec. 54.405(e)(3). Any of these activities, if
undertaken by the subscriber will establish ``usage'' of the Lifeline
service:
(i) Completion of an outbound call;
(ii) Purchase of minutes from the eligible telecommunications
carrier to add to the subscriber's service plan;
(iii) Answering an incoming call from a party other than the
eligible telecommunications carrier or the eligible telecommunications
carrier's agent or representative; or
(iv) Responding to direct contact from the eligible communications
carrier and confirming that he or she wants to continue receiving the
Lifeline service.
(d) In order to receive universal service support reimbursement, an
eligible telecommunications carrier must certify, as part of each
request for reimbursement, that it is in compliance with all of the
rules in this subpart, and, to the extent required under this subpart,
has obtained valid certification and re-certification forms for each of
the subscribers for whom it is seeking reimbursement.
(e) In order to receive universal service support reimbursement, an
eligible telecommunications carrier must keep accurate records of the
revenues it forgoes in providing Lifeline services. 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.
[77 FR 12970, Mar. 2, 2012, as amended at 77 FR 38534, June 28, 2012]
Sec. 54.409 Consumer qualification for Lifeline.
(a) To constitute a qualifying low-income consumer:
(1) A consumer's household income as defined in Sec. 54.400(f) must
be at or below 135% of the Federal Poverty Guidelines for a household of
that size; or
(2) The consumer, one or more of the consumer's dependents, or the
consumer's household must receive benefits from one of the following
federal assistance programs: Medicaid; Supplemental Nutrition Assistance
Program; Supplemental Security Income; Federal Public Housing Assistance
(Section 8); Low-Income Home Energy Assistance Program; National School
Lunch Program's free lunch program; or Temporary Assistance for Needy
Families; or
(3) The consumer meets additional eligibility criteria established
by a state for its residents, provided that such-state specific criteria
are based solely on income or other factors directly related to income.
(b) A consumer who lives on Tribal lands is eligible for Lifeline
service as a ``qualifying low-income consumer'' as defined by Sec.
54.400(a) and as an ``eligible resident of Tribal lands'' as defined by
Sec. 54.400(e) if that consumer meets the qualifications for Lifeline
specified in paragraph (a) of this section or if the consumer, one or
more of the consumer's dependents, or the consumer's household
participates in one of the
[[Page 158]]
following Tribal-specific federal assistance programs: Bureau of Indian
Affairs general assistance; Tribally administered Temporary Assistance
for Needy Families; Head Start (only those households meeting its income
qualifying standard); or the Food Distribution Program on Indian
Reservations.
(c) In addition to meeting the qualifications provided in paragraph
(a) or (b) of this section, in order to constitute a qualifying low-
income consumer, a consumer must not already be receiving a Lifeline
service, and there must not be anyone else in the subscriber's household
subscribed to a Lifeline service.
[77 FR 12970, Mar. 2, 2012, as amended at 77 FR 38534, June 28, 2012]
Sec. 54.410 Subscriber eligibility determination and certification.
(a) All eligible telecommunications carriers must implement policies
and procedures for ensuring that their Lifeline subscribers are eligible
to receive Lifeline services.
(b) Initial income-based eligibility determination. (1) Except where
a state Lifeline administrator or other state agency is responsible for
the initial determination of a subscriber's eligibility, when a
prospective subscriber seeks to qualify for Lifeline or using the
income-based eligibility criteria provided for in Sec. 54.409(a)(1) or
(a)(3) an eligible telecommunications carrier:
(i) Must not seek reimbursement for providing Lifeline to a
subscriber, unless the carrier has received a certification of
eligibility from the prospective subscriber that complies with the
requirements set forth in paragraph (d) of this section and has
confirmed the subscriber's income-based eligibility using the following
procedures:
(A) If an eligible telecommunications carrier can determine a
prospective subscriber's income-based eligibility by accessing one or
more databases containing information regarding the subscriber's income
(``income databases''), the eligible telecommunications carrier must
access such income databases and determine whether the prospective
subscriber qualifies for Lifeline.
(B) If an eligible telecommunications carrier cannot determine a
prospective subscriber's income-based eligibility by accessing income
databases, the eligible telecommunications carrier must review
documentation that establishes that the prospective subscriber meets the
income-eligibility criteria set forth in Sec. 54.409(a)(1) or (a)(3).
Acceptable documentation of income eligibility includes the prior year's
state, federal, or Tribal tax return; current income statement from an
employer or paycheck stub; a Social Security statement of benefits; a
Veterans Administration statement of benefits; a retirement/pension
statement of benefits; an Unemployment/Workers' Compensation statement
of benefit; federal or Tribal notice letter of participation in General
Assistance; or a divorce decree, child support award, or other official
document containing income information. If the prospective subscriber
presents documentation of income that does not cover a full year, such
as current pay stubs, the prospective subscriber must present the same
type of documentation covering three consecutive months within the
previous twelve months.
(ii) Must not retain copies of the documentation of a prospective
subscriber's income-based eligibility for Lifeline.
(iii) Must, consistent with Sec. 54.417, keep and maintain accurate
records detailing the data source a carrier used to determine a
subscriber's eligibility or the documentation a subscriber provided to
demonstrate his or her eligibility for Lifeline.
(2) Where a state Lifeline administrator or other state agency is
responsible for the initial determination of a subscriber's eligibility,
an eligible telecommunications carrier must not seek reimbursement for
providing Lifeline service to a subscriber, based on that subscriber's
income eligibility, unless the carrier has received from the state
Lifeline administrator or other state agency:
(i) Notice that the prospective subscriber meets the income-
eligibility criteria set forth in Sec. 54.409(a)(1) or (a)(3); and
(ii) A copy of the subscriber's certification that complies with the
requirements set forth in paragraph (d) of this section.
[[Page 159]]
(c) Initial program-based eligibility determination. (1) Except in
states where a state Lifeline administrator or other state agency is
responsible for the initial determination of a subscriber's program-
based eligibility, when a prospective subscriber seeks to qualify for
Lifeline service using the program-based criteria set forth in Sec.
54.409(a)(2), (a)(3) or (b), an eligible telecommunications carrier:
(i) Must not seek reimbursement for providing Lifeline to a
subscriber unless the carrier has received a certification of
eligibility from the subscriber that complies with the requirements set
forth in paragraph (d) of this section and has confirmed the
subscriber's program-based eligibility using the following procedures:
(A) If the eligible telecommunications carrier can determine a
prospective subscriber's program-based eligibility for Lifeline by
accessing one or more databases containing information regarding
enrollment in qualifying assistance programs (``eligibility
databases''), the eligible telecommunications carrier must access such
eligibility databases to determine whether the prospective subscriber
qualifies for Lifeline based on participation in a qualifying assistance
program; or
(B) If an eligible telecommunications carrier cannot determine a
prospective subscriber's program-based eligibility for Lifeline by
accessing eligibility databases, the eligible telecommunications carrier
must review documentation demonstrating that a prospective subscriber
qualifies for Lifeline under the program-based eligibility requirements.
Acceptable documentation of program eligibility includes the current or
prior year's statement of benefits from a qualifying assistance program,
a notice or letter of participation in a qualifying assistance program,
program participation documents, or another official document
demonstrating that the prospective subscriber, one or more of the
prospective subscriber's dependents or the prospective subscriber's
household receives benefits from a qualifying assistance program.
(ii) Must not retain copies of the documentation of a subscriber's
program-based eligibility for Lifeline services.
(iii) Must, consistent with Sec. 54.417, keep and maintain accurate
records detailing the data source a carrier used to determine a
subscriber's program-based eligibility or the documentation a subscriber
provided to demonstrate his or her eligibility for Lifeline.
(2) Where a state Lifeline administrator or other state agency is
responsible for the initial determination of a subscriber's eligibility,
when a prospective subscriber seeks to qualify for Lifeline service
using the program-based eligibility criteria provided in Sec. 54.409,
an eligible telecommunications carrier must not seek reimbursement for
providing Lifeline to a subscriber unless the carrier has received from
the state Lifeline administrator or other state agency:
(i) Notice that the subscriber meets the program-based eligibility
criteria set forth in Sec. Sec. 54.409(a)(2), (a)(3) or (b); and
(ii) a copy of the subscriber's certification that complies with the
requirements set forth in paragraph (d) of this section.
(d) Eligibility certifications. Eligible telecommunications carriers
and state Lifeline administrators or other state agencies that are
responsible for the initial determination of a subscriber's eligibility
for Lifeline must provide prospective subscribers Lifeline certification
forms that in clear, easily understood language:
(1) Provide the following information:
(i) Lifeline is a federal benefit and that willfully making false
statements to obtain the benefit can result in fines, imprisonment, de-
enrollment or being barred from the program;
(ii) Only one Lifeline service is available per household;
(iii) A household is defined, for purposes of the Lifeline program,
as any individual or group of individuals who live together at the same
address and share income and expenses;
(iv) A household is not permitted to receive Lifeline benefits from
multiple providers;
(v) Violation of the one-per-household limitation constitutes a
violation of the Commission's rules and will result in the subscriber's
de-enrollment from the program; and
[[Page 160]]
(vi) Lifeline is a non-transferable benefit and the subscriber may
not transfer his or her benefit to any other person.
(2) Require each prospective subscriber to provide the following
information:
(i) The subscriber's full name;
(ii) The subscriber's full residential address;
(iii) Whether the subscriber's residential address is permanent or
temporary;
(iv) The subscriber's billing address, if different from the
subscriber's residential address;
(v) The subscriber's date of birth;
(vi) The last four digits of the subscriber's social security
number, or the subscriber's Tribal identification number, if the
subscriber is a member of a Tribal nation and does not have a social
security number;
(vii) If the subscriber is seeking to qualify for Lifeline under the
program-based criteria, as set forth in Sec. 54.409, the name of the
qualifying assistance program from which the subscriber, his or her
dependents, or his or her household receives benefits; and
(viii) If the subscriber is seeking to qualify for Lifeline under
the income-based criterion, as set forth in Sec. 54.409, the number of
individuals in his or her household.
(3) Require each prospective subscriber to certify, under penalty of
perjury, that:
(i) The subscriber meets the income-based or program-based
eligibility criteria for receiving Lifeline, provided in Sec. 54.409;
(ii) The subscriber will notify the carrier within 30 days if for
any reason he or she no longer satisfies the criteria for receiving
Lifeline including, as relevant, if the subscriber no longer meets the
income-based or program-based criteria for receiving Lifeline support,
the subscriber is receiving more than one Lifeline benefit, or another
member of the subscriber's household is receiving a Lifeline benefit.
(iii) If the subscriber is seeking to qualify for Lifeline as an
eligible resident of Tribal lands, he or she lives on Tribal lands, as
defined in 54.400(e);
(iv) If the subscriber moves to a new address, he or she will
provide that new address to the eligible telecommunications carrier
within 30 days;
(v) If the subscriber provided a temporary residential address to
the eligible telecommunications carrier, he or she will be required to
verify his or her temporary residential address every 90 days;
(vi) The subscriber's household will receive only one Lifeline
service and, to the best of his or her knowledge, the subscriber's
household is not already receiving a Lifeline service;
(vii) The information contained in the subscriber's certification
form is true and correct to the best of his or her knowledge,
(viii) The subscriber acknowledges that providing false or
fraudulent information to receive Lifeline benefits is punishable by
law; and
(ix) The subscriber acknowledges that the subscriber may be required
to re-certify his or her continued eligibility for Lifeline at any time,
and the subscriber's failure to re-certify as to his or her continued
eligibility will result in de-enrollment and the termination of the
subscriber's Lifeline benefits pursuant to Sec. 54.405(e)(4).
(e) State Lifeline administrators or other state agencies that are
responsible for the initial determination of a subscriber's eligibility
for Lifeline must provide each eligible telecommunications carrier with
a copy of each of the certification forms collected by the state
Lifeline administrator or other state agency from that carrier's
subscribers.
(f) Annual eligibility re-certification process. (1) All eligible
telecommunications carriers must annually re-certify all subscribers
except for subscribers in states where a state Lifeline administrator or
other state agency is responsible for re-certification of subscribers'
Lifeline eligibility.
(2) In order to re-certify a subscriber's eligibility, an eligible
telecommunications carrier must confirm a subscriber's current
eligibility to receive Lifeline by:
(i) Querying the appropriate eligibility databases, confirming that
the subscriber still meets the program-
[[Page 161]]
based eligibility requirements for Lifeline, and documenting the results
of that review; or
(ii) Querying the appropriate income databases, confirming that the
subscriber continues to meet the income-based eligibility requirements
for Lifeline, and documenting the results of that review; or
(iii) Obtaining a signed certification from the subscriber that
meets the certification requirements in paragraph (d) of this section.
(3) Where a state Lifeline administrator or other state agency is
responsible for re-certification of a subscriber's Lifeline eligibility,
the state Lifeline administrator or other state agency must confirm a
subscriber's current eligibility to receive a Lifeline service by:
(i) Querying the appropriate eligibility databases, confirming that
the subscriber still meets the program-based eligibility requirements
for Lifeline, and documenting the results of that review; or
(ii) Querying the appropriate income databases, confirming that the
subscriber continues to meet the income-based eligibility requirements
for Lifeline, and documenting the results of that review; or
(iii) Obtaining a signed certification from the subscriber that
meets the certification requirements in paragraph (d) of this section.
(4) Where a state Lifeline administrator or other state agency is
responsible for re-certification of subscribers' Lifeline eligibility,
the state Lifeline administrator or other state agency must provide to
each eligible telecommunications carrier the results of its annual re-
certification efforts with respect to that eligible telecommunications
carrier's subscribers.
(5) If an eligible telecommunications carrier is unable to re-
certify a subscriber or has been notified of a state Lifeline
administrator's or other state agency's inability to re-certify a
subscriber, the eligible telecommunications carrier must comply with the
de-enrollment requirements provided for in Sec. 54.405(e)(4).
(g) Re-certification of temporary address. An eligible
telecommunications carrier must re-certify, every 90 days, the
residential address of each of its subscribers who have provided a
temporary address as part of the subscriber's initial certification or
re-certification of eligibility, pursuant to paragraphs (d), (e), or (f)
of this section.
[77 FR 12970, Mar. 2, 2012, as amended at 77 FR 38534, June 28, 2012]
Sec. 54.412 Off reservation Tribal lands designation process.
(a) The Commission's Wireline Competition Bureau and the Office of
Native Affairs and Policy may, upon receipt of a request made in
accordance with the requirements of this section, designate as Tribal
lands, for the purposes of the Lifeline and Tribal Link Up program,
areas or communities that fall outside the boundaries of existing Tribal
lands but which maintain the same characteristics as lands identified as
Tribal lands defined as in Sec. 54.400(e).
(b) A request for designation must be made to the Commission by a
duly authorized official of a federally recognized American Indian Tribe
or Alaska Native Village.
(c) A request for designation must clearly describe a defined
geographical area for which the requesting party seeks designation as
Tribal lands.
(d) A request for designation must demonstrate the Tribal character
of the area or community.
(e) A request for designation must provide sufficient evidence of a
nexus between the area or community and the Tribe, and describe in
detail how program support to the area or community would aid the Tribe
in serving the needs and interests of its citizens and further the
Commission's goal of increasing telecommunications access on Tribal
lands.
(f) Upon designation by the Wireline Competition Bureau and the
Office of Native Affairs and Policy, the area or community described in
the designation shall be considered Tribal lands for the purposes of
this subpart.
[77 FR 12972, Mar. 2, 2012, as amended at 77 FR 38534, June 28, 2012]
Sec. 54.413 Link Up for Tribal lands.
(a) Definition. For purposes of this subpart, the term ``Tribal Link
Up''
[[Page 162]]
means an assistance program for eligible residents of Tribal lands
seeking telecommunications service from a telecommunications carrier
that is receiving high-cost support on Tribal lands, pursuant to subpart
D of this part, that provides:
(1) A 100 percent reduction, up to $100, of the customary charge for
commencing telecommunications service for a single telecommunications
connection at a subscriber's principal place of residence imposed by an
eligible telecommunications carrier that is also receiving high-cost
support on Tribal lands, pursuant to subpart D of this part. For
purposes of this subpart, a ``customary charge for commencing
telecommunications service'' is the ordinary charge an eligible
telecommunications carrier imposes and collects from all subscribers to
initiate service with that eligible telecommunications carrier. A charge
imposed only on qualifying low-income consumers to initiate service is
not a customary charge for commencing telecommunications service.
Activation charges routinely waived, reduced, or eliminated with the
purchase of additional products, services, or minutes are not customary
charges eligible for universal service support; and
(2) A deferred schedule of payments of the customary charge for
commencing telecommunications service for a single telecommunications
connection at a subscriber's principal place of residence imposed by an
eligible telecommunications carrier that is also receiving high-cost
support on Tribal lands, pursuant to subpart D of this part, for which
the eligible resident of Tribal lands does not pay interest. The
interest charges not assessed to the eligible resident of tribal lands
shall be for a customary charge for connecting telecommunications
service of up to $200 and such interest charges shall be deferred for a
period not to exceed one year.
(b) An eligible resident of Tribal lands may receive the benefit of
the Tribal Link Up program for a second or subsequent time only for
otherwise qualifying commencement of telecommunications service at a
principal place of residence with an address different from the address
for which Tribal Link Up assistance was provided previously.
[77 FR 12973, Mar. 2, 2012]
Sec. 54.414 Reimbursement for Tribal Link Up.
(a) Eligible telecommunications carriers that are receiving high-
cost support, pursuant to subpart D of this part, may receive universal
service support reimbursement for the reduction in their customary
charge for commencing telecommunications service and for providing a
deferred schedule for payment of the customary charge for commencing
telecommunications services for which the subscriber does not pay
interest, in conformity with Sec. 54.413.
(b) In order to receive universal support reimbursement for
providing Tribal Link Up, eligible telecommunications carriers must
follow the procedures set forth in Sec. 54.410 to determine an eligible
resident of Tribal lands' initial eligibility for Tribal Link Up.
Eligible telecommunications carriers must obtain a certification form
from each eligible resident of Tribal lands that complies with Sec.
54.410 prior to enrolling him or her in Tribal Link Up.
(c) In order to receive universal service support reimbursement for
providing Tribal Link Up, eligible telecommunications carriers must keep
accurate records of the reductions in 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 subscriber does not pay interest, in conformity with Sec.
54.413. 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 reductions in
the customary charge 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 subscriber receiving Lifeline services.
[77 FR 12973, Mar. 2, 2012]
[[Page 163]]
Sec. 54.416 Annual certifications by eligible telecommunications
carriers.
(a) Eligible telecommunications carrier certifications. Eligible
telecommunications carriers are required to make and submit to the
Administrator the following annual certifications, under penalty of
perjury, relating to the Lifeline program:
(1) An officer of each eligible telecommunications carrier must
certify that the carrier has policies and procedures in place to ensure
that its Lifeline subscribers are eligible to receive Lifeline services.
Each eligible telecommunications carrier must make this certification
annually to the Administrator as part of the carrier's submission of
annual re-certification data pursuant to this section. In instances
where an eligible telecommunications carrier confirms consumer
eligibility by relying on income or eligibility databases, as defined in
Sec. 54.410(b)(1)(i)(A) or (c)(1)(i)(A), the representative must attest
annually as to what specific data sources the eligible
telecommunications carrier used to confirm eligibility.
(2) An officer of the eligible telecommunications carrier must
certify that the carrier is in compliance with all federal Lifeline
certification procedures. Eligible telecommunications carriers must make
this certification annually to the Administrator as part of the
carrier's submission of re-certification data pursuant to this section.
(b) All eligible telecommunications carriers must annually provide
the results of their re-certification efforts, performed pursuant to
Sec. 54.410(f), to the Commission and the Administrator. Eligible
telecommunications carriers designated as such by one or more states
pursuant to Sec. 54.201 must also provide, on an annual basis, the
results of their re-certification efforts to state commissions for
subscribers residing in those states where the state designated the
eligible telecommunications carrier. Eligible telecommunications
carriers must also provide their annual re-certification results for
subscribers residing on Tribal lands to the relevant Tribal governments.
(c) States that mandate Lifeline support may impose additional
standards on eligible telecommunications carriers operating in their
states to ensure compliance with state Lifeline programs.
[77 FR 12973, Mar. 2, 2012, as amended at 77 FR 38534, June 28, 2012]
Sec. 54.417 Recordkeeping requirements.
(a) Eligible telecommunications carriers must maintain records to
document compliance with all Commission and state requirements governing
the Lifeline and Tribal Link Up program for the three full preceding
calendar years and provide that documentation to the Commission or
Administrator upon request. Notwithstanding the preceding sentence,
eligible telecommunications carriers must maintain the documentation
required in Sec. 54.410(d) and (f) for as long as the subscriber
receives Lifeline service from that eligible telecommunications carrier.
(b) If an eligible telecommunications carrier provides Lifeline
discounted wholesale services to a reseller, it must obtain a
certification from that reseller that it is complying with all
Commission requirements governing the Lifeline and Tribal Link Up
program.
(c) Non-eligible-telecommunications-carrier resellers that purchase
Lifeline discounted wholesale services to offer discounted services to
low-income consumers must maintain records to document compliance with
all Commission requirements governing the Lifeline and Tribal Link Up
program for the three full preceding calendar years and provide that
documentation to the Commission or Administrator upon request. To the
extent such a reseller provides discounted services to low-income
consumers, it must fulfill the obligations of an eligible
telecommunications carrier in Sec. Sec. 54.405 and 54.410.
[77 FR 12974, Mar. 2, 2012, as amended at 77 FR 38534, June 28, 2012]
Sec. 54.418 Digital Television Transition Notices by Eligible
Telecommunications Carriers.
(a) Eligible telecommunications carriers (ETCs) that receive federal
universal service funds shall provide their Lifeline or Link-Up
customers with notices about the transition for over-the-air full power
broadcasting from analog
[[Page 164]]
to digital service (the ``DTV Transition'') in the monthly bills or bill
notices received by such customers, or as a monthly stand-alone mailer
(e.g., postcard, brochure), beginning April 1, 2009, and concluding on
June 30, 2009.
(b) The notice must be provided as part of an information section on
the bill or bill notice itself or on a secondary document mailed with
the bill or bill notice, or as part of a monthly stand-alone mailer
(e.g., postcard, brochure) in the same language or languages as the
customer's bill or bill notice. These notices must:
(1) Be in clear and conspicuous print;
(2) Convey at least the following information about the DTV
transition:
(i) The nationwide switch to digital television broadcasting will be
complete on June 12, 2009, but your local television stations may switch
sooner. After the switch, analog-only television sets that receive TV
programming through an antenna will need a converter box to continue to
receive over-the-air TV. Watch your local stations to find out when they
will turn off their analog signal and switch to digital-only
broadcasting. Analog-only TVs should continue to work as before to
receive low power, Class A or translator television stations and with
cable and satellite TV services, gaming consoles, VCRs, DVD players, and
similar products.
(ii) Information about the DTV transition is available from your
local television stations, http://www.DTV.gov, or 1-888-CALL-FCC (TTY 1-
888-TELL-FCC), and from http://www.dtv2009.gov or 1-888-DTV-2009 (TTY 1-
877-530-2634) for information about subsidized coupons for digital-to-
analog converter boxes;
(c) If an ETC's Lifeline or Link-Up customer does not receive paper
versions of either a bill or a notice of billing, then that customer
must be provided with equivalent monthly notices in whatever medium they
receive information about their monthly bill or as a monthly stand-alone
mailer (e.g., postcard, brochure).
(d) ETCs that receive federal universal service funds shall provide
information on the DTV Transition that is equivalent to the information
provided pursuant to paragraph (b)(2) of this section as part of any
Lifeline or Link-Up publicity campaigns conducted by the ETC between
March 27, 2008, and June 30, 2009.
[73 FR 28732, May 19, 2008, as amended at 74 FR 8878, Feb. 27, 2009]
Sec. 54.419 Validity of electronic signatures.
(a) For the purposes of this subpart, an electronic signature,
defined by the Electronic Signatures in Global and National Commerce
Act, as an electronic sound, symbol, or process, attached to or
logically associated with a contract or other record and executed or
adopted by a person with the intent to sign the record, has the same
legal effect as a written signature.
(b) For the purposes of this subpart, an electronic record, defined
by the Electronic Signatures in Global and National Commerce Act as a
contract or other record created, generated, sent, communicated,
received, or stored by electronic means, constitutes a record.
[77 FR 12974, Mar. 2, 2012]
Sec. 54.420 Low income program audits.
(a) Independent audit requirements for eligible telecommunications
carriers. Companies that receive $5 million or more annually in the
aggregate, on a holding company basis, in Lifeline reimbursements must
obtain a third party biennial audit of their compliance with the rules
in this subpart. Such engagements shall be agreed upon performance
attestations to assess the company's overall compliance with rules and
the company's internal controls regarding these regulatory requirements.
(1) For purposes of the $5 million threshold, a holding company
consists of operating companies and affiliates, as that term is defined
in section 3(2) of the Communications Act of 1934, as amended, that are
eligible telecommunications carriers.
(2) The initial audit must be completed one year after the
Commission issues a standardized audit plan outlining the scope of the
engagement and the extent of compliance testing to be performed by
third-party auditors and shall be conducted every two years thereafter,
unless directed otherwise
[[Page 165]]
by the Commission. The following minimum requirements shall apply:
(i) The audit must be conducted by a licensed certified public
accounting firm that is independent of the carrier.
(ii) The engagement shall be conducted consistent with government
accounting standards (GAGAS).
(3) The certified public accounting firm shall submit to the
Commission any rule interpretations necessary to complete the biennial
audit, and the Administrator shall notify all firms subject to the
biennial audit requirement of such requests. The audit issue will be
noted, but not held as a negative finding, in future audit reports for
all carriers subject to this requirement unless and until guidance has
been provided by the Commission.
(4) Within 60 days after completion of the audit work, but prior to
finalization of the report, the third party auditor shall submit a draft
of the audit report to the Commission and the Administrator, who shall
be deemed authorized users of such reports. Finalized audit reports must
be provided to the Commission, the Administrator, and relevant states
and Tribal governments within 30 days of the issuance of the final audit
report. The reports will not be considered or deemed confidential.
(5) Delegated authority. The Wireline Competition Bureau and the
Office of Managing Director have delegated authority to perform the
functions specified in paragraphs (a)(2) and (a)(3) of this section.
(b) Audit requirements for new eligible telecommunications carriers.
After a company is designated for the first time in any state or
territory the Administrator will audit that new eligible
telecommunications carrier to assess its overall compliance with the
rules in this subpart and the company's internal controls regarding
these regulatory requirements. This audit should be conducted within the
carrier's first twelve months of seeking federal low-income Universal
Service Fund support.
[77 FR 12974, Mar. 2, 2012, as amended at 77 FR 38534, June 28, 2012]
Sec. 54.422 Annual reporting for eligible telecommunications carriers
that receive low-income support.
(a) In order to receive support under this subpart, an eligible
telecommunications carrier must annually report:
(1) The company name, names of the company's holding company,
operating companies and affiliates, and any branding (a ``dba,'' or
``doing-business-as company'' or brand designation) as well as relevant
universal service identifiers for each such entity by Study Area Code.
For purposes of this paragraph, ``affiliates'' has the meaning set forth
in section 3(2) of the Communications Act of 1934, as amended; and
(2) Information describing the terms and conditions of any voice
telephony service plans offered to Lifeline subscribers, including
details on the number of minutes provided as part of the plan,
additional charges, if any, for toll calls, and rates for each such
plan. To the extent the eligible telecommunications carrier offers plans
to Lifeline subscribers that are generally available to the public, it
may provide summary information regarding such plans, such as a link to
a public Web site outlining the terms and conditions of such plans.
(b) In order to receive support under this subpart, a common carrier
that is designated as an eligible telecommunications carrier under
section 214(e)(6) of the Act and does not receive support under subpart
D of this part must annually provide:
(1) Detailed information on any outage in the prior calendar year,
as that term is defined in 47 CFR 4.5, of at least 30 minutes in
duration for each service area in which the eligible telecommunications
carrier is designated for any facilities it owns, operates, leases, or
otherwise utilizes that potentially affect
(i) At least ten percent of the end users served in a designated
service area; or
(ii) A 911 special facility, as defined in 47 CFR 4.5(e).
(iii) Specifically, the eligible telecommunications carrier's annual
report must include information detailing:
(A) The date and time of onset of the outage;
[[Page 166]]
(B) A brief description of the outage and its resolution;
(C) The particular services affected;
(D) The geographic areas affected by the outage;
(E) Steps taken to prevent a similar situation in the future; and
(F) The number of customers affected.
(2) The number of complaints per 1,000 connections (fixed or mobile)
in the prior calendar year;
(3) Certification of compliance with applicable service quality
standards and consumer protection rules;
(4) Certification that the carrier is able to function in emergency
situations as set forth in Sec. 54.202(a)(2).
(c) All reports required by this section must be filed with the
Office of the Secretary of the Commission, and with the Administrator.
Such reports must also be filed with the relevant state commissions and
the relevant authority in a U.S. territory or Tribal governments, as
appropriate.
[77 FR 38534, June 28, 2012]
Subpart F_Universal Service Support for Schools and Libraries
Sec. 54.500 Terms and definitions.
(a) Billed entity. A ``billed entity'' is the entity that remits
payment to service providers for services rendered to eligible schools
and libraries.
(b) Educational purposes. For purposes of this subpart, activities
that are integral, immediate, and proximate to the education of
students, or in the case of libraries, integral, immediate and proximate
to the provision of library services to library patrons, qualify as
``educational purposes.'' Activities that occur on library or school
property are presumed to be integral, immediate, and proximate to the
education of students or the provision of library services to library
patrons.
(c) Elementary school. An ``elementary school'' means an elementary
school as defined in 20 U.S.C. 7801(18), a non-profit institutional day
or residential school, including a public elementary charter school,
that provides elementary education, as determined under state law.
(d) Library. A ``library'' includes:
(1) A public library;
(2) A public elementary school or secondary school library;
(3) An academic library;
(4) A research library, which for the purpose of this section means
a library that:
(i) Makes publicly available library services and materials suitable
for scholarly research and not otherwise available to the public; and
(ii) Is not an integral part of an institution of higher education;
and
(5) A private library, but only if the state in which such private
library is located determines that the library should be considered a
library for the purposes of this definition.
(e) Library consortium. A ``library consortium'' is any local,
statewide, regional, or interstate cooperative association of libraries
that provides for the systematic and effective coordination of the
resources of schools, public, academic, and special libraries and
information centers, for improving services to the clientele of such
libraries. For the purposes of these rules, references to library will
also refer to library consortium.
(f) Lowest corresponding price. ``Lowest corresponding price'' is
the lowest price that a service provider charges to non-residential
customers who are similarly situated to a particular school, library, or
library consortium for similar services.
(g) Master contract. A ``master contract'' is a contract negotiated
with a service provider by a third party, the terms and conditions of
which are then made available to an eligible school, library, rural
health care provider, or consortium that purchases directly from the
service provider.
(h) Minor contract modification. A ``minor contract modification''
is a change to a universal service contract that is within the scope of
the original contract and has no effect or merely a negligible effect on
price, quantity, quality, or delivery under the original contract.
(i) National school lunch program. The ``national school lunch
program'' is a program administered by the U.S. Department of
Agriculture and state agencies that provides free or reduced
[[Page 167]]
price lunches to economically disadvantaged children. A child whose
family income is between 130 percent and 185 percent of applicable
family size income levels contained in the nonfarm poverty guidelines
prescribed by the Office of Management and Budget is eligible for a
reduced price lunch. A child whose family income is 130 percent or less
of applicable family size income levels contained in the nonfarm income
poverty guidelines prescribed by the Office of Management and Budget is
eligible for a free lunch.
(j) Pre-discount price. The ``pre-discount price'' means, in this
subpart, the price the service provider agrees to accept as total
payment for its telecommunications or information services. This amount
is the sum of the amount the service provider expects to receive from
the eligible school or library and the amount it expects to receive as
reimbursement from the universal service support mechanisms for the
discounts provided under this subpart.
(k) Secondary school. A ``secondary school'' means a secondary
school as defined in 20 U.S.C. 7801(38), a non-profit institutional day
or residential school, including a public secondary charter school, that
provides secondary education, as determined under state law except that
the term does not include any education beyond grade 12.
(l) State telecommunications network. A ``state telecommunications
network'' is a state government entity that procures, among other
things, telecommunications offerings from multiple service providers and
bundles such offerings into packages available to schools, libraries, or
rural health care providers that are eligible for universal service
support, or a state government entity that provides, using its own
facilities, such telecommunications offerings to such schools,
libraries, and rural health care providers.
(m) Wide area network. For purposes of this subpart, a ``wide area
network'' is a voice or data network that provides connections from one
or more computers within an eligible school or library to one or more
computers or networks that are external to such eligible school or
library. Excluded from this definition is a voice or data network that
provides connections between or among instructional buildings of a
single school campus or between or among non-administrative buildings of
a single library branch.
[63 FR 2128, Jan. 13, 1998, as amended at 68 FR 36942, June 20, 2003; 76
FR 56302, Sept. 13, 2011]
Sec. 54.501 Eligibility for services provided by telecommunications
carriers.
(a) Schools. (1) Only schools meeting the statutory definition of
``elementary school'' or ``secondary school'' as defined in Sec.
54.500(c) or (k) of these rules, and not excluded under paragraphs
(a)(2) or (a)(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.
(b) Libraries. (1) Only libraries eligible for assistance from a
State library administrative agency under the Library Services and
Technology Act (Pub. L. 104-208) and not excluded under paragraphs
(b)(2) or (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.
(c) Consortia. (1) For purposes of seeking competitive bids for
supported 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,
[[Page 168]]
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
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; 68
FR 36942, June 20, 2003; 75 FR 75411, Dec. 3, 2010; 76 FR 56302, Sept.
13, 2011]
Sec. 54.502 Eligible services.
(a) Supported services. Supported services are listed in the
Eligible Services List as updated annually in accordance with paragraph
(b) of this section. The services in this subpart will be supported 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. These supported services fall within the
following general categories:
(1) Telecommunications services. For purposes of this subpart,
supported telecommunications services provided by telecommunications
carriers include all commercially available telecommunications services.
(2) Telecommunications. For purposes of this subpart, supported
telecommunications can be provided in whole or in part via fiber by any
entity.
(3) Internet access. For purposes of this subpart, Internet access
is as defined in Sec. 54.5.
(4) Internal connections and basic maintenance. (i) For purposes of
this subpart, a service is eligible for support as a component of an
institution's internal connections if such service is necessary to
transport information within one or more instructional buildings of a
single school campus or within one or more non-administrative buildings
that comprise a single library branch. Discounts are not available for
internal connections in non-instructional buildings of a school or
school district, or in administrative buildings of a library, to the
extent that a library system has separate administrative buildings,
unless those internal connections are essential for the effective
transport of information to an instructional building of a school or to
a non-administrative building of a library or the Commission has found
that the use of those services meets the definition of educational
purpose. 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.
(ii) For purposes of this subpart, basic maintenance services shall
be eligible as an internal connections service if, but for the
maintenance at issue, the internal connection would not function and
serve its intended purpose with the degree of reliability ordinarily
provided in the marketplace to entities receiving such services. Basic
maintenance services do not include services that maintain equipment
that is not supported or that enhance the utility of equipment beyond
the transport of information, or diagnostic services in excess of those
necessary to maintain the equipment's ability to transport information.
(iii) Each eligible school or library shall be eligible for support
for internal connections services, except basic maintenance services, no
more than twice every five funding years. For the purpose of determining
eligibility, the five-year period begins in any funding
[[Page 169]]
year in which the school or library receives discounted internal
connections services other than basic maintenance services. If a school
or library receives internal connections services other than basic
maintenance services that are shared with other schools or libraries
(for example, as part of a consortium), the shared services will be
attributed to the school or library in determining whether it is
eligible for support.
(b) Eligible Services List. (1) The Administrator shall submit by
March 30 of each year a draft list of services eligible for support,
based on the Commission's rules for the following funding year. The
Wireline Competition Bureau will issue a Public Notice seeking comment
on the Administrator's proposed eligible services list. At least 60 days
prior to the opening of the window for the following funding year, the
final list of services eligible for support will be released.
(2) All supported services are listed in the Eligible Services List
as updated annually in accordance with paragraph (b)(1) of this section.
[75 FR 75411, Dec. 3, 2010]
Sec. 54.503 Competitive bidding requirements.
(a) All entities participating in the schools and libraries
universal service support program must conduct a fair and open
competitive bidding process, consistent with all requirements set forth
in this subpart.
Note to paragraph (a): The following is an illustrative list of
activities or behaviors that would not result in a fair and open
competitive bidding process: the applicant for supported services has a
relationship with a service provider that would unfairly influence the
outcome of a competition or would furnish the service provider with
inside information; someone other than the applicant or an authorized
representative of the applicant prepares, signs, and submits the FCC
Form 470 and certification; a service provider representative is listed
as the FCC Form 470 contact person and allows that service provider to
participate in the competitive bidding process; the service provider
prepares the applicant's FCC Form 470 or participates in the bid
evaluation or vendor selection process in any way; the applicant turns
over to a service provider the responsibility for ensuring a fair and
open competitive bidding process; an applicant employee with a role in
the service provider selection process also has an ownership interest in
the service provider seeking to participate in the competitive bidding
process; and the applicant's FCC Form 470 does not describe the
supported services with sufficient specificity to enable interested
service providers to submit responsive bids.
(b) Competitive bid requirements. Except as provided in Sec.
54.511(c), an eligible school, library, or consortium that includes an
eligible school or library shall seek competitive bids, pursuant to the
requirements established in this subpart, for all services eligible for
support under Sec. 54.502. 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.
(c) 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 to initiate the
competitive bidding process. The FCC Form 470 and any request for
proposal cited in the FCC Form 470 shall include, at a minimum, the
following information, to the extent applicable with respect to the
services requested:
(i) A list of specified services for which the school, library, or
consortia including such entities, anticipates they are likely to seek
discounts; and
(ii) Sufficient information to enable bidders to reasonably
determine the needs of the applicant.
(2) The FCC Form 470 shall be signed by the person authorized to
order eligible services for the eligible school, library, or consortium
including such entities and shall include that person's certification
under oath that:
(i) The schools meet the statutory definition of ``elementary
school'' or ``secondary school'' as defined in Sec. 54.500(c) or (k) of
these rules, do not operate as for-profit businesses, and do not have
endowments exceeding $50 million.
(ii) The libraries or library consortia eligible for assistance from
a State library administrative agency under the Library Services and
Technology Act
[[Page 170]]
of 1996 do not operate as for-profit businesses and whose budgets are
completely separate from any school (including, but not limited to,
elementary and secondary schools, colleges, and universities).
(iii) All of the individual schools, libraries, and library
consortia receiving services are or will be covered by:
(A) Technology plans for using the services requested in the
application; or
(B) No technology plan is required by Commission rules.
(iv) To the extent a technology plan is required by Sec. 54.508,
the technology plan(s) has/have been/will be approved consistent with
Sec. 54.508.
(v) The services the school, library, or consortium purchases at
discounts will be used primarily for educational purposes and will not
be sold, resold, or transferred in consideration for money or any other
thing of value, except as allowed by Sec. 54.513.
(vi) Support under this support mechanism is conditional upon the
school(s) and library(ies) securing access to all of the resources,
including computers, training, software, maintenance, internal
connections, and electrical connections necessary to use the services
purchased effectively.
(vii) All bids submitted for eligible products and services will be
carefully considered, with price being the primary factor, and the bid
selected will be for the most cost-effective service offering consistent
with Sec. 54.511.
(3) The Administrator shall post each FCC Form 470 that it receives
from an eligible school, library, or consortium that includes an
eligible school or library on its website designated for this purpose.
(4) After posting on the Administrator's website an eligible
school's, library's, or consortium's FCC Form 470, the Administrator
shall send confirmation of the posting to the entity requesting service.
That entity shall then wait at least four weeks from the date on which
its description of services is posted on the Administrator's website
before making commitments with the selected providers of services. The
confirmation from the Administrator shall include the date after which
the requestor may sign a contract with its chosen provider(s).
(d) Gift restrictions. (1) Subject to paragraphs (d)(3) and (4) of
this section, an eligible school, library, or consortium that includes
an eligible school or library may not directly or indirectly solicit or
accept any gift, gratuity, favor, entertainment, loan, or any other
thing of value from a service provider participating in or seeking to
participate in the schools and libraries universal service program. No
such service provider shall offer or provide any such gift, gratuity,
favor, entertainment, loan, or other thing of value except as otherwise
provided herein. Modest refreshments not offered as part of a meal,
items with little intrinsic value intended solely for presentation, and
items worth $20 or less, including meals, may be offered or provided,
and accepted by any individuals or entities subject to this rule, if the
value of these items received by any individual does not exceed $50 from
any one service provider per funding year. The $50 amount for any
service provider shall be calculated as the aggregate value of all gifts
provided during a funding year by the individuals specified in paragraph
(d)(2)(ii) of this section.
(2) For purposes of this paragraph:
(i) The terms ``school, library, or consortium'' include all
individuals who are on the governing boards of such entities (such as
members of a school committee), and all employees, officers,
representatives, agents, consultants or independent contractors of such
entities involved on behalf of such school, library, or consortium with
the Schools and Libraries Program of the Universal Service Fund (E-rate
Program), including individuals who prepare, approve, sign or submit E-
rate applications, technology plans, or other forms related to the E-
rate Program, or who prepare bids, communicate or work with E-rate
service providers, E-rate consultants, or with USAC, as well as any
staff of such entities responsible for monitoring compliance with the E-
rate Program; and
(ii) The term ``service provider'' includes all individuals who are
on the governing boards of such an entity
[[Page 171]]
(such as members of the board of directors), and all employees,
officers, representatives, agents, or independent contractors of such
entities.
(3) The restrictions set forth in this paragraph shall not be
applicable to the provision of any gift, gratuity, favor, entertainment,
loan, or any other thing of value, to the extent given to a family
member or a friend working for an eligible school, library, or
consortium that includes an eligible school or library, provided that
such transactions:
(i) Are motivated solely by a personal relationship,
(ii) Are not rooted in any service provider business activities or
any other business relationship with any such eligible school, library,
or consortium, and
(iii) Are provided using only the donor's personal funds that will
not be reimbursed through any employment or business relationship.
(4) Any service provider may make charitable donations to an
eligible school, library, or consortium that includes an eligible school
or library in the support of its programs as long as such contributions
are not directly or indirectly related to E-rate procurement activities
or decisions and are not given by service providers to circumvent
competitive bidding and other E-rate program rules, including those in
paragraph (c)(2)(vi) of this section, requiring schools and libraries to
pay their own non-discount share for the services they are purchasing.
[75 FR 75412, Dec. 3, 2010, as amended at 76 FR 56302, Sept. 13, 2011]
Sec. 54.504 Requests for services.
(a) Filing of the 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 an FCC Form 471.
(1) The FCC Form 471 shall be signed by the person authorized to
order eligible services for the eligible school, library, or consortium
and shall include that person's certification under oath that:
(i) The schools meet the statutory definition of ``elementary
school'' or ``secondary school'' as defined in Sec. 54.500(c) or (k) of
these rules, do not operate as for-profit businesses, and do not have
endowments exceeding $50 million.
(ii) The libraries or library consortia eligible for assistance from
a State library administrative agency under the Library Services and
Technology Act of 1996 do not operate as for-profit businesses and whose
budgets are completely separate from any school (including, but not
limited to, elementary and secondary schools, colleges, and
universities).
(iii) The entities listed on the FCC Form 471 application have
secured access to all of the resources, including computers, training,
software, maintenance, internal connections, and electrical connections,
necessary to make effective use of the services purchased, as well as to
pay the discounted charges for eligible services from funds to which
access has been secured in the current funding year. The billed entity
will pay the non-discount portion of the cost of the goods and services
to the service provider(s).
(iv) All of the schools and libraries listed on the FCC Form 471
application are or will be covered by:
(A) Technology plan(s) for using the services requested in the
application; or
(B) No technology plan is required by Commission rules.
(v) To the extent a technology plan is required by Sec. 54.508,
status of technology plan(s) has/have been approved or will be approved
by a state or other authorized body.
(vi) The entities listed on the FCC Form 471 application have
complied with all applicable state and local laws regarding procurement
of services for which support is being sought.
(vii) The services the school, library, or consortium purchases at
discounts will be used primarily for educational purposes and will not
be sold, resold, or transferred in consideration for money or any other
thing of value, except as allowed by Sec. 54.513.
[[Page 172]]
(viii) The entities listed in the application have complied with all
program rules and acknowledge that failure to do so may result in denial
of discount funding and/or recovery of funding.
(ix) The applicant understands that the discount level used for
shared services is conditional, for future years, upon ensuring that the
most disadvantaged schools and libraries that are treated as sharing in
the service, receive an appropriate share of benefits from those
services.
(x) The applicant recognizes that it may be audited pursuant to its
application, that it will retain for five years any and all worksheets
and other records relied upon to fill out its application, and that, if
audited, it will make such records available to the Administrator.
(xi) All bids submitted to a school, library, or consortium seeking
eligible services were carefully considered and the most cost-effective
bid was selected in accordance with Sec. 54.503 of this subpart, with
price being the primary factor considered, and is the most cost-
effective means of meeting educational needs and technology plan goals.
(2) [Reserved]
(b) Mixed eligibility requests. If 30 percent or more of a request
for discounts made in an FCC Form 471 is for ineligible services, the
request shall be denied in its entirety.
(c) 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.
(d) Service substitution. (1) The Administrator shall grant a
request by an applicant to substitute a service or product for one
identified on its FCC Form 471 where:
(i) The service or product has the same functionality;
(ii) The substitution does not violate any contract provisions or
state or local procurement laws;
(iii) The substitution does not result in an increase in the
percentage of ineligible services or functions; and
(iv) The applicant certifies that the requested change is within the
scope of the controlling FCC Form 470, including any associated Requests
for Proposal, for the original services.
(2) In the event that a service substitution results in a change in
the pre-discount price for the supported service, support shall be based
on the lower of either the pre-discount price of the service for which
support was originally requested or the pre-discount price of the new,
substituted service.
(3) For purposes of this rule, the broad categories of eligible
services (telecommunications service, Internet access, and internal
connections) are not deemed to have the same functionality with one
another.
(e) Mixed eligibility services. A request for discounts for a
product or service that includes both eligible and ineligible components
must allocate the cost of the contract to eligible and ineligible
components.
(1) Ineligible components. If a product or service contains
ineligible components, costs must be allocated to the extent that a
clear delineation can be made between the eligible and ineligible
components. The delineation must have a tangible basis, and the price
for the eligible portion must be the most cost-effective means of
receiving the eligible service.
(2) Ancillary ineligible components. If a product or service
contains ineligible components that are ancillary to the eligible
components, and the product or service is the most cost-effective means
of receiving the eligible component functionality, without regard to the
value of the ineligible component, costs need not be allocated between
the eligible and ineligible components. Discounts shall be provided on
the full
[[Page 173]]
cost of the product or service. An ineligible component is ``ancillary''
if a price for the ineligible component cannot be determined separately
and independently from the price of the eligible components, and the
specific package remains the most cost-effective means of receiving the
eligible services, without regard to the value of the ineligible
functionality.
(3) The Administrator shall utilize the cost allocation requirements
of this subparagraph in evaluating mixed eligibility requests under
paragraph (e)(1) of this section.
(f) Filing of FCC Form 473. All service providers eligible to
provide telecommunications and other supported services under this
subpart shall submit annually a completed FCC Form 473 to the
Administrator. The FCC Form 473 shall be signed by an authorized person
and shall include that person's certification under oath that:
(1) The prices in any offer that this service provider makes
pursuant to the schools and libraries universal service support program
have been arrived at independently, without, for the purpose of
restricting competition, any consultation, communication, or agreement
with any other offeror or competitor relating to those prices, the
intention to submit an offer, or the methods or factors used to
calculate the prices offered;
(2) The prices in any offer that this service provider makes
pursuant to the schools and libraries universal service support program
will not be knowingly disclosed by this service provider, directly or
indirectly, to any other offeror or competitor before bid opening (in
the case of a sealed bid solicitation) or contract award (in the case of
a negotiated solicitation) unless otherwise required by law; and
(3) No attempt will be made by this service provider to induce any
other concern to submit or not to submit an offer for the purpose of
restricting competition.
[75 FR 75413, Dec. 3, 2010, as amended at 76 FR 56303, Sept. 13, 2011]
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
[[Page 174]]
school district in which they are located for each of their branches or
facilities.
(3) The Administrator shall classify schools and libraries as
``urban'' or ``rural'' based on location in an urban or rural area,
according to the following desigantions.
(i) Schools and libraries located in metropolitan counties, as
measured by the Office of Management and Budget's Metropolitan
Statistical Area method, shall be designated as urban, except for those
schools and libraries located within metropolitan counties identified by
census block or tract in the Goldsmith Modification.
(ii) Schools and libraries located in non-metropolitan counties, as
measured by the Office of Management and Budget's Metropolitan
Statistical Area method, shall be designated as rural. Schools and
libraries located in rural areas within metropolitan counties identified
by census block or tract in the Goldsmith Modification shall also be
designated as rural.
(4) School districts, library systems, or other billed entities
shall calculate discounts on supported services described in Sec.
54.502(b) 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; 75 FR 75414, Dec. 3,
2010]
Sec. 54.506 [Reserved]
Sec. 54.507 Cap.
(a) Amount of the annual cap. In funding year 2010 and subsequent
funding years, the $2.25 billion funding cap on
[[Page 175]]
federal universal service support for schools and libraries shall be
automatically increased annually to take into account increases in the
rate of inflation as calculated in paragraph (a)(1) of this section.
(1) Increase calculation. To measure increases in the rate of
inflation for the purposes of this paragraph (a), the Commission shall
use the Gross Domestic Product Chain-type Price Index (GDP-CPI). To
compute the annual increase as required by this paragraph (a), the
percentage increase in the GDP-CPI from the previous year will be used.
For instance, the annual increase in the GDP-CPI from 2008 to 2009 would
be used for the 2010 funding year. The increase shall be rounded to the
nearest 0.1 percent by rounding 0.05 percent and above to the next
higher 0.1 percent and otherwise rounding to the next lower 0.1 percent.
This percentage increase shall be added to the amount of the annual
funding cap from the previous funding year. If the yearly average GDP-
CPI decreases or stays the same, the annual funding cap shall remain the
same as the previous year.
(2) Public notice. When the calculation of the yearly average GDP-
CPI is determined, the Wireline Competition Bureau shall publish a
public notice in the Federal Register within 60 days announcing any
increase of the annual funding cap based on the rate of inflation.
(3) Amount of unused funds. 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.
(i) The Administrator shall report to the Commission, on a quarterly
basis, funding that is unused from prior years of the schools and
libraries support mechanism.
(ii) Application of unused funds. On an annual basis, in the second
quarter of each calendar year, all funds that are collected and that are
unused from prior years shall be available for use in the next full
funding year of the schools and libraries mechanism in accordance with
the public interest and notwithstanding the annual cap as described in
this paragraph (a).
(b) A funding year for purposes of the schools and libraries cap
shall be the period July 1 through June 30.
(c) Requests. Funds shall be available to fund discounts for
eligible schools and libraries and consortia of such eligible entities
on a first-come-first-served basis, with requests accepted beginning on
the first of July prior to each funding year. The Administrator shall
maintain on the Administrator's website a running tally of the funds
already committed for the existing funding year. The Administrator shall
implement an initial filing period that treats all schools and libraries
filing within that period as if their applications were simultaneously
received. The initial filing period shall begin on the date that the
Administrator begins to receive applications for support, and shall
conclude on a date to be determined by the Administrator. The
Administrator may implement such additional filing periods as it deems
necessary.
(d) Annual filing requirement. Schools and libraries, and consortia
of such eligible entities shall file new funding requests for each
funding year no sooner than the July 1 prior to the start of that
funding year. Schools, libraries, and eligible consortia must use
recurring services for which discounts have been committed by the
Administrator within the funding year for which the discounts were
sought. The deadline for implementation of non-recurring services will
be September 30 following the close of the funding year. An applicant
may request and receive from the Administrator an extension of the
implementation deadline for non-recurring services if it satisfies one
of the following criteria:
(1) The applicant's funding commitment decision letter is issued by
the Administrator on or after March 1 of the funding year for which
discounts are authorized;
(2) The applicant receives a service provider change authorization
or service substitution authorization from the Administrator on or after
March 1 of the funding year for which discounts are authorized;
(3) The applicant's service provider is unable to complete
implementation for
[[Page 176]]
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. The Administrator shall act in accordance
with paragraph (g)(1) of this section with respect to applicants that
file an FCC Form 471, as described in Sec. 54.504(a), when a filing
period described in paragraph (c) of this section is in effect. The
Administrator shall act in accordance with paragraph (g)(2) of this
section with respect to applicants that file an FCC Form 471, as
described in Sec. 54.504(a), 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, the 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, the
Administrator shall take the following steps:
(i) The Administrator shall first calculate the demand for services
listed under the telecommunications services, telecommunications, and
Internet access categories on the eligible services list for all
discount levels, as determined by the schools and libraries discount
matrix in Sec. 54.505(c). These services shall receive first priority
for the available funding.
(ii) The Administrator shall then calculate the amount of available
funding remaining after providing support for the telecommunications and
Internet access categories for all discount levels. The Administrator
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. Sec. 54.507(g)(1)(i) and (ii), the Administrator shall next
allocate funds toward the requests for internal connections submitted by
schools and libraries eligible for an 80 percent discount, then for a 70
percent discount, and shall continue committing funds for internal
connections in the same manner to the applicants at each descending
discount level until there are no funds remaining.
Note to paragraph (g)(1)(iii): To the extent that there are single
discount percentage levels associated with ``shared services'' under
Sec. 54.505(b)(4), the Administrator shall 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 177]]
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]
Editorial Note: For Federal Register citations affecting Sec.
54.507, see the List of CFR Sections Affected, which appears in the
Finding Aids section of the printed volume and at www.fdsys.gov.
Sec. 54.508 Technology plans.
(a) Applicants must develop a technology plan when requesting
discounts for internal connections and basic maintenance for internal
connections. Applicants must document the date on which the technology
plan was created. The technology plan must include the following
elements:
(1) A clear statement of goals and a realistic strategy for using
telecommunications and information technology to improve education or
library services;
(2) A professional development strategy to ensure that the staff
understands how to use these new technologies to improve education or
library services;
(3) An assessment of the telecommunication services, hardware,
software, and other services that will be needed to improve education or
library services; and
(4) An evaluation process that enables the school or library to
monitor progress toward the specified goals and make mid-course
corrections in response to new developments and opportunities as they
arise.
(b) Relevance of approval under Enhancing Education through
Technology. Technology plans that meet the standards of the U.S.
Department of Education's Enhancing Education Through Technology (EETT),
20 U.S.C. 6764, are sufficient for satisfying paragraphs (a)(1) through
(4) of this section. Furthermore, to the extent that the U.S. Department
of Education adopts future technology plan requirements that require one
or more of the four elements described in paragraph (a) of this section,
such plans will be acceptable for satisfying those elements of paragraph
(a) of this section. Applicants with such plans will only need to
supplement such plans with the analysis needed to satisfy those elements
of paragraph (a) of this section not covered by the future Department of
Education technology plan requirements.
(c) Timing of certification. As required under Sec. Sec.
54.503(c)(2)(iii) and 54.504(a)(1)(iv), applicants must certify
[[Page 178]]
that they have prepared any required technology plans. They must also
confirm, in FCC Form 486, that their plan was approved before they began
receiving services pursuant to it.
(d) Parties qualified to approve technology plans required in this
subpart. Applicants required to prepare and obtain approval of
technology plans under this subpart must obtain such approval from
either their state, the Administrator, or an independent entity approved
by the Commission or certified by the Administrator as qualified to
provide such approval. All parties who will provide such approval must
apply the standards set forth in paragraphs (a) and (b) of this section.
[75 FR 75415, Dec. 3, 2010]
Sec. 54.509 Adjustments to the discount matrix.
(a) Estimating future spending requests. When submitting their
requests for specific amounts of funding for a funding year, schools,
libraries, library consortia, and consortia including such entities
shall also estimate their funding requests for the following funding
year to enable the Administrator, to estimate funding demand for the
following year.
(b) Reduction in percentage discounts. At all times other than
within a filing period described in Sec. 54.507(c), if the estimates
schools and libraries make of their future funding needs lead the
Administrator to predict that total funding request for a funding year
will exceed the available funding, the Administrator shall calculate the
percentage reduction to all schools and libraries, except those in the
two most disadvantaged categories, necessary to permit all requests in
the next funding year to be fully funded.
(c) Remaining funds. If funds remain under the cap at the end of the
funding year in which discounts have been reduced below those set in the
matrices, the Administrator shall consult with the Commission to
establish the best way to distribute those funds.
[62 FR 32948, June 17, 1997, as amended at 62 FR 41304, Aug. 1, 1997; 63
FR 70572, Dec. 21, 1998; 69 FR 6191, Feb. 10, 2004]
Sec. 54.511 Ordering services.
(a) Selecting a provider of eligible services. In selecting a
provider of eligible services, schools, libraries, library consortia,
and consortia including any of those entities shall carefully consider
all bids submitted and must select the most cost-effective service
offering. In determining which service offering is the most cost-
effective, entities may consider relevant factors other than the pre-
discount prices submitted by providers, but price should be the primary
factor considered.
(b) Lowest corresponding price. Providers of eligible services shall
not charge schools, school districts, libraries, library consortia, or
consortia including any of these entities a price above the lowest
corresponding price for supported services, unless the Commission, with
respect to interstate services or the state commission with respect to
intrastate services, finds that the lowest corresponding price is not
compensatory. Promotional rates offered by a service provider for a
period of more than 90 days must be included among the comparable rates
upon which the lowest corresponding price is determined.
(c) Existing contracts. (1) A signed contract for services eligible
for discounts pursuant to this subpart between an eligible school or
library as defined under Sec. 54.501 or consortium that includes an
eligible school or library and a service provider shall be exempt from
the requirements set forth in Sec. 54.503 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.
54.503 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
[[Page 179]]
of determining whether and to what extent the school, library, or
consortium is exempt from the competitive bid requirements.
(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.
(2) For the 1998-1999 funding year, a contract exempt from the
competitive bid requirement, as described in paragraph (c) of this
section, may be voluntarily extended to September 30, 1999 only to the
extent necessary to permit delivery of the nonrecurring services subject
to that contract and for which discounts have been approved.
[62 FR 32948, June 17, 1997, as amended at 63 FR 2130, Jan. 13, 1998; 63
FR 33586, June 19, 1998; 63 FR 43097, Aug. 12, 1998; 63 FR 70572, Dec.
21, 1998; 64 FR 22810, Apr. 28, 1999; 68 FR 36942, June 20, 2003; 75 FR
75415, Dec. 3, 2010]
Sec. 54.513 Resale and transfer of services.
(a) Prohibition on resale. Eligible supported services provided at a
discount under this subpart shall not be sold, resold, or transferred in
consideration of money or any other thing of value, except as provided
in paragraph (b) of this section.
(b) Disposal of obsolete equipment components of eligible services.
Eligible equipment components of eligible services purchased at a
discount under this subpart shall be considered obsolete if the
equipment components have has been installed for at least five years.
Obsolete equipment components of eligible services may be resold or
transferred in consideration of money or any other thing of value,
disposed of, donated, or traded.
(c) 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.
(d) Eligible services and equipment components of eligible services
purchased at a discount under this subpart shall not be transferred,
with or without consideration of money or any other thing of value, for
a period of three years after purchase, except that eligible services
and equipment components of eligible services may be transferred to
another eligible school or library in the event that the particular
location where the service originally was received is permanently or
temporarily closed. If an eligible service or equipment component of a
service is transferred due to the permanent or temporary closure of a
school or library, the transferor must notify the Administrator of the
transfer, and both the transferor and recipient must maintain detailed
records documenting the transfer and the reason for the transfer for a
period of five years.
[62 FR 32948, June 17, 1997, as amended at 69 FR 6191, Feb. 10, 2004; 75
FR 75415, Dec. 3, 2010]
Sec. 54.514 Payment for discounted service.
(a) Choice of payment method. Service providers providing discounted
services under this subpart in any funding year shall, prior to the
submission the Form 471, permit the billed entity to choose the method
of payment for the discounted services from those methods approved by
the Administrator, including by making a full, undiscounted payment and
receiving subsequent reimbursement of the discount amount from the
service provider.
(b) Deadline for remittance of reimbursement checks. Service
providers that receive discount reimbursement checks from the
Administrator after having received full payment from the billed entity
must remit the discount amount to the billed entity no later than 20
business days after receiving the reimbursement check.
[68 FR 36942, June 20, 2003]
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
[[Page 180]]
eligible services were incurred or receive a direct reimbursement from
the Administrator for that amount. Carriers shall elect in January of
each year the method by which they will be reimbursed and shall remain
subject to that method for the duration of the calendar year. Any
support amount that is owed a carrier that fails to remit its monthly
universal service contribution obligation, however, shall first be
applied as an offset to that carrier's contribution obligation. Such a
carrier shall remain subject to the offsetting method for the remainder
of the calendar year in which it failed to remit their monthly universal
service obligation. A carrier that continues to be in arrears on its
universal service contribution obligations at the end of a calendar year
shall remain subject to the offsetting method for the next calendar
year.
(b) If a telecommunications carrier elects to treat the amount
eligible for support under this subpart as an offset against the
carrier's universal service contribution obligation and the total amount
of support owed to the carrier exceeds its universal service obligation,
calculated on an annual basis, the carrier shall receive a direct
reimbursement in the amount of the difference. Any such reimbursement
due a carrier shall be submitted to that carrier no later than the end
of the first quarter of the calendar year following the year in which
the costs were incurred and the offset against the carrier's universal
service obligation was applied.
[63 FR 67009, Dec. 4, 1998]
Sec. 54.516 Auditing.
(a) Recordkeeping requirements--(1) Schools and libraries. Schools
and libraries shall retain all documents related to the application for,
receipt, and delivery of discounted telecommunications and other
supported services for at least 5 years after the last day of service
delivered in a particular Funding Year. Any other document that
demonstrates compliance with the statutory or regulatory requirements
for the schools and libraries mechanism shall be retained as well.
Schools and libraries shall maintain asset and inventory records of
equipment purchased as components of supported internal connections
services sufficient to verify the actual location of such equipment for
a period of five years after purchase.
(2) Service providers. Service providers shall retain documents
related to the delivery of discounted telecommunications and other
supported services for at least 5 years after the last day of the
delivery of discounted services. Any other document that demonstrates
compliance with the statutory or regulatory requirements for the schools
and libraries mechanism shall be retained as well.
(b) Production of records. Schools, libraries, and service providers
shall produce such records at the request of any representative
(including any auditor) appointed by a state education department, the
Administrator, the FCC, or any local, state or federal agency with
jurisdiction over the entity.
(c) Audits. Schools, libraries, and service providers shall be
subject to audits and other investigations to evaluate their compliance
with the statutory and regulatory requirements for the schools and
libraries universal service support mechanism, including those
requirements pertaining to what services and products are purchased,
what services and products are delivered, and how services and products
are being used. Schools and libraries receiving discounted services must
provide consent before a service provider releases confidential
information to the auditor, reviewer, or other representative.
[69 FR 55111, Sept. 13, 2004]
Sec. 54.517 [Reserved]
Sec. 54.518 Support for wide area networks.
To the extent that schools, libraries or consortia that include an
eligible school or library 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.
[75 FR 75415, Dec. 3, 2010]
[[Page 181]]
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(a))
on behalf of eligible schools and libraries (as described in Sec.
54.501) or consortia that include an eligible school or library. Such
state telecommunications networks shall pass on such discounts to
eligible schools and libraries and shall:
(1) Maintain records listing each eligible school and library and
showing the basis for each eligibility determination;
(2) Maintain records demonstrating the discount amount to which each
eligible school and library is entitled and the basis for such
determination;
(3) Take reasonable steps to ensure that each eligible school or
library receives a proportionate share of the shared services;
(4) Request that service providers apply the appropriate discount
amounts on the portion of the supported services used by each school or
library;
(5) Direct eligible schools and libraries to pay the discounted
price; and
(6) Comply with the competitive bid requirements set forth in Sec.
54.503.
(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. 54.502(a), 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, as amended at75
FR 75415, Dec. 3, 2010]
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 board, 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.
(i) The term ``minor'' means any individual who has not attained the
age of 17 years.
(ii) The term ``obscene'' has the meaning given such term in 18
U.S.C. 1460.
(iii) The term ``child pornography'' has the meaning given such term
in 18 U.S.C. 2256.
(iv) The term ``harmful to minors'' means any picture, image,
graphic image file, or other visual depiction that--
(A) Taken as a whole and with respect to minors, appeals to a
prurient interest in nudity, sex, or excretion;
(B) Depicts, describes, or represents, in a patently offensive way
with respect to what is suitable for minors, an actual or simulated
sexual act or sexual contact, actual or simulated normal or perverted
sexual acts, or a lewd exhibition of the genitals; and
(C) Taken as a whole, lacks serious literary, artistic, political,
or scientific value as to minors.
(v) The terms ``sexual act'' and ``sexual contact'' have the
meanings given such terms in 18 U.S.C. 2246.
(vi) The term ``technology protection measure'' means a specific
technology that blocks or filters Internet access to the material
covered by a certification under paragraph (c) of this section.
(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
[[Page 182]]
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. The school must enforce the
operation of the technology protection measure during use of its
computers with Internet access, although an administrator, supervisor,
or other person authorized by the certifying authority under paragraph
(a)(1) of this section may disable the technology protection measure
concerned, during use by an adult, to enable access for bona fide
research or other lawful purpose. This Internet safety policy must also
include monitoring the online activities of minors. Beginning July 1,
2012, schools' Internet safety policies must provide for educating
minors about appropriate online behavior, including interacting with
other individuals on social networking Web sites and in chat rooms and
cyberbullying awareness and response.
(ii) The Internet safety policy adopted and enforced pursuant to 47
U.S.C. 254(l) must address all of the following issues:
(A) Access by minors to inappropriate matter on the Internet and
World Wide Web,
(B) The safety and security of minors when using electronic mail,
chat rooms, and other forms of direct electronic communications,
(C) Unauthorized access, including so-called ``hacking,'' and other
unlawful activities by minors online;
(D) Unauthorized disclosure, use, and dissemination of personal
information regarding minors; and
(E) Measures designed to restrict minors' access to materials
harmful to minors.
(iii) A school must satisfy its obligations to make certifications
by making one of the following certifications required by paragraph
(c)(1) of this section on FCC Form 486:
(A) The recipient(s) of service represented in the Funding Request
Number(s) on this Form 486 has (have) complied with the requirements of
the Children's Internet Protection Act, as codified at 47 U.S.C. 254(h)
and (l).
(B) Pursuant to the Children's Internet Protection Act, as codified
at 47 U.S.C. 254(h) and (l), the recipient(s) of service represented in
the Funding Request Number(s) on this Form 486, for whom this is the
first funding year in the federal universal service support mechanism
for schools and libraries, 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
[[Page 183]]
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. The library must enforce the
operation of the technology protection measure during use of its
computers with Internet access, although an administrator, supervisor,
or other person authorized by the certifying authority under paragraph
(a)(2) of this section may disable the technology protection measure
concerned, during use by an adult, to enable access for bona fide
research or other lawful purpose.
(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, 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, for whom this is the
first funding year in the federal universal service support mechanism
for schools and libraries, is (are) undertaking such actions, including
any necessary procurement procedures, to comply with the requirements of
CIPA for the next funding year, but has (have) not completed all
requirements of CIPA for this funding year.
(C) The Children's Internet Protection Act, as codified at 47 U.S.C.
254(h) and (l), does not apply because the recipient(s) of service
represented in the Funding Request Number(s) on this Form 486 is (are)
receiving discount services only for telecommunications services.
(3) Certifications required from consortia members and billed
entities for consortia. (i) The billed entity of a consortium, as
defined in paragraph (a)(3) of this section, other than one requesting
only discounts on telecommunications services for consortium members,
must collect from the authority for each of its school and library
members, one of the following signed certifications on FCC Form 479
(``Certification to Consortium Leader of Compliance with the Children's
Internet Protection Act''), which must be submitted to the billed entity
consistent with paragraph (c)(1) or paragraph (c)(2) of this section:
(A) The recipient(s) of service under my administrative authority
and represented in the Funding Request Number(s) for which you have
requested or received Funding Commitments has (have) complied with the
requirements of the Children's Internet Protection Act, as codified at
47 U.S.C. 254(h) and (l).
(B) Pursuant to the Children's Internet Protection Act, as codified
at 47 U.S.C. 254(h) and (l), the recipient(s) of service under my
administrative authority and represented in the Funding Request
Number(s) for which you have requested or received Funding Commitments,
and for whom this is the first funding year in the federal universal
service support mechanism for schools and libraries, is (are)
undertaking such
[[Page 184]]
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.
(4) Local determination of content. A determination regarding matter
inappropriate for minors shall be made by the school board, local
educational agency, library, or other authority responsible for making
the determination. No agency or instrumentality of the United States
Government may establish criteria for making such determination; review
the determination made by the certifying school, school board, school
district, local educational agency, library, or other authority; or
consider the criteria employed by the certifying school, school board,
school district, local educational agency, library, or other authority
in the administration of the schools and libraries universal service
support mechanism.
(5) Availability for review. Each Internet safety policy adopted
pursuant to 47 U.S.C. 254(l) shall be made available to the Commission,
upon request from the Commission, by the school, school board, school
district, local educational agency, library, or other authority
responsible for adopting such Internet safety policy for purposes of the
review of such Internet safety policy by the Commission.
(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
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ensure the use of computers in accordance with the certification
requirements of this section shall not be affected by the failure of
other school or library consortium members to ensure the use of
computers in accordance with such requirements.
(3) Reestablishing compliance. At any time, a school or library
deemed ineligible for discounts under the federal universal service
support mechanism for schools and libraries for failure to ensure the
use of computers in accordance with the certification requirements of
this section and that has been directed to reimburse the program for
discounts received during the period of noncompliance, may reestablish
compliance by ensuring the use of its computers in accordance with the
certification requirements under this section. Upon submittal to the
Commission of a certification or other appropriate evidence of such
remedy, the school or library shall be eligible for discounts under the
universal service mechanism.
(f) Waivers based on state or local procurement rules and
regulations and competitive bidding requirements. Waivers shall be
granted to schools and libraries when the authority responsible for
making the certifications required by this section, cannot make the
required certifications because its state or local procurement rules or
regulations or competitive bidding requirements, prevent the making of
the certification otherwise required. The waiver shall be granted upon
the provision, by the authority responsible for making the
certifications on behalf of schools or libraries, that the schools or
libraries will be brought into compliance with the requirements of this
section, for schools, before the start of the third program year after
April 20, 2001 in which the school is applying for funds under this
title, and, for libraries, before the start of Funding Year 2005 or the
third program year after April 20, 2001, whichever is later.
(g) Funding year certification deadlines. For Funding Year 2003 and
for subsequent funding years, billed entities shall provide one of the
certifications required under paragraph (c)(1), (c)(2) or (c)(3) of this
section on an FCC Form 486 in accordance with the existing program
guidelines established by the Administrator.
(h) Public notice; hearing or meeting. A school or library shall
provide reasonable public notice and hold at least one public hearing or
meeting to address the proposed Internet safety policy.
[66 FR 19396, Apr. 16, 2001; 66 FR 22133, May 3, 2001, as amended at 67
FR 50603, Aug. 5, 2002; 68 FR 47255, Aug. 8, 2003; 76 FR 56303, Sept.
13, 2011]
Sec. 54.522 [Reserved]
Sec. 54.523 Payment for the non-discount portion of supported
services.
An eligible school, library, or consortium must pay the non-discount
portion of services or products purchased with universal service
discounts. An eligible school, library, or consortium may not receive
rebates for services or products purchased with universal service
discounts. For the purpose of this rule, the provision, by the provider
of a supported service, of free services or products unrelated to the
supported service or product constitutes a rebate of the non-discount
portion of the supported services.
[69 FR 6192, Feb. 10, 2004]
Subpart G_Universal Service Support for Health Care Providers
Sec. 54.601 Eligibility.
(a) Health care providers. (1) Except with regard to those services
provided under Sec. 54.621(b), only an entity that is either a public
or non-profit rural health care provider, as defined in this section,
shall be eligible to receive supported services under this subpart.
(2) For purposes of this subpart, a ``health care provider'' is any:
(i) Post-secondary educational institution offering health care
instruction, including a teaching hospital or medical school;
(ii) Community health center or health center providing health care
to migrants;
(iii) Local health department or agency;
(iv) Community mental health center;
(v) Not-for-profit hospital;
(vi) Rural health clinic; or
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(vii) Consortium of health care providers consisting of one or more
entities described in paragraphs (a)(2)(i) through (a)(2)(vi) of this
section.
(3) For purposes of this subpart, a rural health care provider is a
public or non-profit health care provider located in a rural area, as
defined in this subpart.
(i) Notwithstanding the definition of ``rural area'' in Sec. 54.5,
any health care provider that is located in a ``rural area'' under the
definition used by the Commission prior to July 1, 2005, and received a
funding commitment from the rural health care program prior to July 1,
2005, is eligible for support under this subpart.
(ii) [Reserved]
(4) Each separate site or location of a health care provider shall
be considered an individual health care provider for purposes of
calculating and limiting support under this subpart.
(b) Consortia. (1) An eligible health care provider may join a
consortium with other eligible health care providers; with schools,
libraries, and library consortia eligible under Subpart F; and with
public sector (governmental) entities to order telecommunications
services. With one exception, eligible health care providers
participating in consortia with ineligible private sector members shall
not be eligible for supported services under this subpart. A consortium
may include ineligible private sector entities if such consortium is
only receiving services at tariffed rates or at market rates from those
providers who do not file tariffs.
(2) For consortia, universal service support under this subpart
shall apply only to the portion of eligible services used by an eligible
health care provider.
(c) Services. (1) Any telecommunications service that is the subject
of a properly completed bona fide request by a rural health care
provider shall be eligible for universal service support, subject to the
limitations described in this paragraph. The length of a supported
telecommunications service may not exceed the distance between the
health care provider and the point farthest from that provider on the
jurisdictional boundary of the largest city in a state as defined in
Sec. 54.625(a).
(2) Internet access and limited toll-free access to internet. (i)
For purposes of this subpart, eligible Internet access is an information
service that enables rural health care providers to post their own data,
interact with stored data, generate new data, or communicate over the
World Wide Web.
(ii) Internet access shall be eligible for universal service support
under Sec. 54.621(a).
(iii) Limited toll-free access to an Internet service provider shall
be eligible for universal service support under Sec. 54.621(b).
(3) Advanced telecommunications and information services as provided
under Sec. 54.621.
(d) Allocation of discounts. An eligible health care provider that
engages in eligible and ineligible activities or that collocates with an
entity that provides ineligible services shall allocate eligible and
ineligible activities in order to receive a prorated discount for
eligible activities. Health care providers shall choose a method of cost
allocation that is based on objective criteria and reasonably reflects
the eligible usage of the facilities.
[62 FR 32948, June 17, 1997, as amended at 64 FR 66787, Nov. 30, 1999;
68 FR 74502, Dec. 24, 2003; 70 FR 6372, Feb. 7, 2005; 73 FR 19438, Apr.
10, 2008; 76 FR 37282, June 27, 2011]
Sec. 54.603 Competitive bid requirements.
(a) Competitive bidding requirement. To select the
telecommunications carriers that will provide services eligible for
universal service support to it under this subpart, each eligible health
care provider shall participate in a competitive bidding process
pursuant to the requirements established in this subpart and any
additional and applicable state, local, or other procurement
requirements.
(b) Posting of FCC Form 465. (1) An eligible health care provider
seeking to receive telecommunications services eligible for universal
service support under this subpart shall submit a completed FCC Form 465
to the Rural Health Care Division. FCC Form 465 shall be signed by the
person authorized to order telecommunications services for the health
care provider and
[[Page 187]]
shall include, at a minimum, that person's certification under oath
that:
(i) The requester is a public or non-profit entity that falls within
one of the seven categories set forth in the definition of health care
provider, listed in Sec. 54.601(a);
(ii) The requester is physically located in a rural area, unless the
health care provider is requesting services provided under Sec. 54.621;
(iii) If the health care provider is requesting services provided
under Sec. 54.621, that the requester cannot obtain toll-free access to
an Internet service provider;
(iv) The requested service or services will be used solely for
purposes reasonably related to the provision of health care services or
instruction that the health care provider is legally authorized to
provide under the law in the state in which such health care services or
instruction are provided;
(v) The requested service or services will not be sold, resold or
transferred in consideration of money or any other thing of value; and
(vi) If the service or services are being purchased as part of an
aggregated purchase with other entities or individuals, the full details
of any such arrangement, including the identities of all co-purchasers
and the portion of the service or services being purchased by the health
care provider.
(2) The Rural Health Care Division shall post each FCC Form 465 that
it receives from an eligible health care provider on its website
designated for this purpose.
(3) After posting an eligible health care providers FCC Form 465 on
the Rural Health Care Corporation website, the Rural Health Care
Division shall send confirmation of the posting to the entity requesting
services. The health care provider shall wait at least 28 days from the
date on which its FCC Form 465 is posted on the website before making
commitments with the selected telecommunications carrier(s).
(4) After selecting a telecommunications carrier, the health care
provider shall certify to the Rural Health Care Division that the
provider is selecting the most cost-effective method of providing the
requested service or services, where the most cost-effective method of
providing a service is defined as the method that costs the least after
consideration of the features, quality of transmission, reliability, and
other factors that the health care provider deems relevant to choosing a
method of providing the required health care services. The health care
provider shall submit to the Administrator paper copies of the responses
or bids received in response to the requested services.
(5) The confirmation from the Rural Health Care Division shall
include the date after which the requester may sign a contract with its
chosen telecommunications carrier(s).
[62 FR 32948, June 17, 1997, as amended at 62 FR 41304, Aug. 1, 1997; 63
FR 2131, Jan. 13, 1998; 68 FR 74502, Dec. 24, 2003]