[Title 47 CFR ]
[Code of Federal Regulations (annual edition) - October 1, 2013 Edition]
[From the U.S. Government Printing Office]



[[Page i]]

          

          Title 47

Telecommunication


________________________

Parts 40 to 69

                         Revised as of October 1, 2013

          Containing a codification of documents of general 
          applicability and future effect

          As of October 1, 2013
                    Published by the Office of the Federal Register 
                    National Archives and Records Administration as a 
                    Special Edition of the Federal Register

[[Page ii]]

          U.S. GOVERNMENT OFFICIAL EDITION NOTICE

          Legal Status and Use of Seals and Logos
          
          
          The seal of the National Archives and Records Administration 
              (NARA) authenticates the Code of Federal Regulations (CFR) as 
              the official codification of Federal regulations established 
              under the Federal Register Act. Under the provisions of 44 
              U.S.C. 1507, the contents of the CFR, a special edition of the 
              Federal Register, shall be judicially noticed. The CFR is 
              prima facie evidence of the original documents published in 
              the Federal Register (44 U.S.C. 1510).

          It is prohibited to use NARA's official seal and the stylized Code 
              of Federal Regulations logo on any republication of this 
              material without the express, written permission of the 
              Archivist of the United States or the Archivist's designee. 
              Any person using NARA's official seals and logos in a manner 
              inconsistent with the provisions of 36 CFR part 1200 is 
              subject to the penalties specified in 18 U.S.C. 506, 701, and 
              1017.

          Use of ISBN Prefix

          This is the Official U.S. Government edition of this publication 
              and is herein identified to certify its authenticity. Use of 
              the 0-16 ISBN prefix is for U.S. Government Printing Office 
              Official Editions only. The Superintendent of Documents of the 
              U.S. Government Printing Office requests that any reprinted 
              edition clearly be labeled as a copy of the authentic work 
              with a new ISBN.

              
              
          U . S . G O V E R N M E N T P R I N T I N G O F F I C E

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

          U.S. Superintendent of Documents  Washington, DC 
              20402-0001

          http://bookstore.gpo.gov

          Phone: toll-free (866) 512-1800; DC area (202) 512-1800

[[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........................     535
      Alphabetical List of Agencies Appearing in the CFR......     555
      Table of OMB Control Numbers............................     565
      List of CFR Sections Affected...........................     575

[[Page iv]]





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

                     Cite this Code: CFR
                     To cite the regulations in 
                       this volume use title, 
                       part and section number. 
                       Thus, 47 CFR 42.01 refers 
                       to title 47, part 42, 
                       section 01.

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

[[Page v]]



                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1

    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

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

HOW TO USE THE CODE OF FEDERAL REGULATIONS

    The Code of Federal Regulations is kept up to date by the individual 
issues of the Federal Register. These two publications must be used 
together to determine the latest version of any given rule.
    To determine whether a Code volume has been amended since its 
revision date (in this case, October 1, 2013), consult the ``List of CFR 
Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
List of Parts Affected,'' which appears in the Reader Aids section of 
the daily Federal Register. These two lists will identify the Federal 
Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

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

OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

[[Page vi]]

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

PAST PROVISIONS OF THE CODE

    Provisions of the Code that are no longer in force and effect as of 
the revision date stated on the cover of each volume are not carried. 
Code users may find the text of provisions in effect on any given date 
in the past by using the appropriate List of CFR Sections Affected 
(LSA). For the convenience of the reader, a ``List of CFR Sections 
Affected'' is published at the end of each CFR volume. For changes to 
the Code prior to the LSA listings at the end of the volume, consult 
previous annual editions of the LSA. For changes to the Code prior to 
2001, consult the List of CFR Sections Affected compilations, published 
for 1949-1963, 1964-1972, 1973-1985, and 1986-2000.

``[RESERVED]'' TERMINOLOGY

    The term ``[Reserved]'' is used as a place holder within the Code of 
Federal Regulations. An agency may add regulatory information at a 
``[Reserved]'' location at any time. Occasionally ``[Reserved]'' is used 
editorially to indicate that a portion of the CFR was left vacant and 
not accidentally dropped due to a printing or computer error.

INCORPORATION BY REFERENCE

    What is incorporation by reference? Incorporation by reference was 
established by statute and allows Federal agencies to meet the 
requirement to publish regulations in the Federal Register by referring 
to materials already published elsewhere. For an incorporation to be 
valid, the Director of the Federal Register must approve it. The legal 
effect of incorporation by reference is that the material is treated as 
if it were published in full in the Federal Register (5 U.S.C. 552(a)). 
This material, like any other properly issued regulation, has the force 
of law.
    What is a proper incorporation by reference? The Director of the 
Federal Register will approve an incorporation by reference only when 
the requirements of 1 CFR part 51 are met. Some of the elements on which 
approval is based are:
    (a) The incorporation will substantially reduce the volume of 
material published in the Federal Register.
    (b) The matter incorporated is in fact available to the extent 
necessary to afford fairness and uniformity in the administrative 
process.
    (c) The incorporating document is drafted and submitted for 
publication in accordance with 1 CFR part 51.
    What if the material incorporated by reference cannot be found? If 
you have any problem locating or obtaining a copy of material listed as 
an approved incorporation by reference, please contact the agency that 
issued the regulation containing that incorporation. If, after 
contacting the agency, you find the material is not available, please 
notify the Director of the Federal Register, National Archives and 
Records Administration, 8601 Adelphi Road, College Park, MD 20740-6001, 
or call 202-741-6010.

CFR INDEXES AND TABULAR GUIDES

    A subject index to the Code of Federal Regulations is contained in a 
separate volume, revised annually as of January 1, entitled CFR Index 
and Finding Aids. This volume contains the Parallel Table of Authorities 
and Rules. A list of CFR titles, chapters, subchapters, and parts and an 
alphabetical list of agencies publishing in the CFR are also included in 
this volume.

[[Page vii]]

    An index to the text of ``Title 3--The President'' is carried within 
that volume.
    The Federal Register Index is issued monthly in cumulative form. 
This index is based on a consolidation of the ``Contents'' entries in 
the daily Federal Register.
    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

REPUBLICATION OF MATERIAL

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

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
volume, contact the issuing agency. The issuing agency's name appears at 
the top of odd-numbered pages.
    For inquiries concerning CFR reference assistance, call 202-741-6000 
or write to the Director, Office of the Federal Register, National 
Archives and Records Administration, 8601 Adelphi Road, College Park, MD 
20740-6001 or e-mail [email protected].

SALES

    The Government Printing Office (GPO) processes all sales and 
distribution of the CFR. For payment by credit card, call toll-free, 
866-512-1800, or DC area, 202-512-1800, M-F 8 a.m. to 4 p.m. e.s.t. or 
fax your order to 202-512-2104, 24 hours a day. For payment by check, 
write to: US Government Printing Office - New Orders, P.O. Box 979050, 
St. Louis, MO 63197-9000.

ELECTRONIC SERVICES

    The full text of the Code of Federal Regulations, the LSA (List of 
CFR Sections Affected), The United States Government Manual, the Federal 
Register, Public Laws, Public Papers of the Presidents of the United 
States, Compilation of Presidential Documents and the Privacy Act 
Compilation are available in electronic format via www.ofr.gov. For more 
information, contact the GPO Customer Contact Center, U.S. Government 
Printing Office. Phone 202-512-1800, or 866-512-1800 (toll-free). E-
mail, [email protected].
    The Office of the Federal Register also offers a free service on the 
National Archives and Records Administration's (NARA) World Wide Web 
site for public law numbers, Federal Register finding aids, and related 
information. Connect to NARA's web site at www.archives.gov/federal-
register.
    The e-CFR is a regularly updated, unofficial editorial compilation 
of CFR material and Federal Register amendments, produced by the Office 
of the Federal Register and the Government Printing Office. It is 
available at www.ecfr.gov.

    Charles A. Barth,
    Director,
    Office of the Federal Register.
    October 1, 2013.







[[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, 2013.

    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)

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

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

[[Page 3]]



        CHAPTER I--FEDERAL COMMUNICATIONS COMMISSION (CONTINUED)




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

            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...................................          87
53              Special provisions concerning Bell operating 
                    companies...............................         114
54              Universal service...........................         118
59              Infrastructure sharing......................         236
61              Tariffs.....................................         237
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.........         276
64              Miscellaneous rules relating to common 
                    carriers................................         307
65              Interstate rate of return prescription 
                    procedures and methodologies............         445
68              Connection of terminal equipment to the 
                    telephone network.......................         454
69              Access charges..............................         488

Supplementary Publications: Annual Reports of the Federal Communications 
  Commission to Congress.

  Federal Communications Commission Reports of Orders and Decisions.

  Communications Act of 1934 (with amendments and index thereto), Recap. 
Version, May 1989.

  Study Guide and Reference Material for Commercial Radio Operator 
Examinations, May 1979 edition.

[[Page 5]]



            SUBCHAPTER B_COMMON CARRIER SERVICES (CONTINUED)



                         PARTS 40-41 [RESERVED]



PART 42_PRESERVATION OF RECORDS OF COMMUNICATION COMMON CARRIERS--Table of 

Contents



                              Applicability

Sec.
42.01 Applicability.

                          General Instructions

42.1 Scope of the regulations in this part.
42.2 Designation of a supervisory official.
42.3 Protection and storage of records.
42.4 Index of records.
42.5 Preparation and preservation of reproductions of original records.
42.6 Retention of telephone toll records.
42.7 Retention of other records.

   Specific Instructions for Carriers Offering Interexchange Services

42.10 Public availability of information concerning interexchange 
          services.
42.11 Retention of information concerning detariffed interexchange 
          services.

    Authority: Sec. 4(i), 48 Stat. 1066, as amended, 47 U.S.C. 154(i). 
Interprets or applies secs. 219 and 220, 48 Stat. 1077-78, 47 U.S.C. 
219, 220.

    Source: 51 FR 32653, Sept. 15, 1986, unless otherwise noted.

                              Applicability



Sec. 42.01  Applicability.

    This part prescribes the regulations governing the preservation of 
records of communication common carriers that are fully subject to the 
jurisdiction of the Commission.

                          General Instructions



Sec. 42.1  Scope of the regulations in this part.

    (a) The regulations in this part apply to all accounts, records, 
memoranda, documents, papers, and correspondence prepared by or on 
behalf of the carrier as well as those which come into its possession in 
connection with the acquisition of property, such as by purchase, 
consolidation, merger, etc.
    (b) The regulations in this part shall not be construed as requiring 
the preparation of accounts, records, or memoranda not required to be 
prepared by other regulations, such as the Uniform System of Accounts, 
except as provided hereinafter.
    (c) The regulations in this part shall not be construed as excusing 
compliance with any other lawful requirement for the preservation of 
records.



Sec. 42.2  Designation of a supervisory official.

    Each carrier subject to the regulations in this part shall designate 
one or more officials to supervise the preservation of its records.



Sec. 42.3  Protection and storage of records.

    The carrier shall protect records subject to the regulations in this 
part from damage from fires, and other hazards and, in the selection of 
storage spaces, safeguard the records from unnecessary exposure to 
deterioration.



Sec. 42.4  Index of records.

    Each carrier shall maintain at its operating company headquarters a 
master index of records. The master index shall identify the records 
retained, the related retention period, and the locations where the 
records are maintained. The master index shall be subject to review by 
Commission staff and the Commission shall reserve the right to add 
records, or lengthen retention periods upon finding that retention 
periods may be insufficient for its regulatory purposes. When any 
records are lost or destroyed before expiration of the retention period 
set forth in the master index, a certified statement shall be added to 
the master index, as soon as practicable, listing, as far as may be 
determined, the records lost or destroyed and describing the 
circumstances of the premature loss or destruction. At each office of 
the carrier where records are kept or stored, the carrier shall arrange, 
file, and currently index the records on site so that

[[Page 6]]

they may be readily identified and made available to representatives of 
the Commission.



Sec. 42.5  Preparation and preservation of reproductions of original records.

    (a) Each carrier may use a retention medium of its choice to 
preserve records in lieu of original records, provided that they observe 
the requirements of paragraphs (b) and (c) of this section.
    (b) A paper or microfilm record need not be created to satisfy the 
requirements of this part if the record is initially prepared in 
machine-readable medium such as punched cards, magnetic tapes, and 
disks. Each record kept in a machine-readable medium shall be 
accompanied by a statement clearly indicating the type of data included 
in the record and certifying that the information contained in it has 
been accurately duplicated. This statement shall be executed by a person 
duplicating the records. The records shall be indexed and retained in 
such a manner that they are easily accessible, and the carrier shall 
have the facilities available to locate, identify and reproduce the 
records in readable form without loss of clarity.
    (c) Records may be retained on microfilm provided they meet the 
requirements of the Federal Business Records Act (28 U.S.C. 1732).



Sec. 42.6  Retention of telephone toll records.

    Each carrier that offers or bills toll telephone service shall 
retain for a period of 18 months such records as are necessary to 
provide the following billing information about telephone toll calls: 
the name, address, and telephone number of the caller, telephone number 
called, date, time and length of the call. Each carrier shall retain 
this information for toll calls that it bills whether it is billing its 
own toll service customers for toll calls or billing customers for 
another carrier.

[51 FR 39536, Oct. 29, 1986]



Sec. 42.7  Retention of other records.

    Except as specified in Sec. 42.6, each carrier shall retain records 
identified in its master index of records for the period established 
therein. Records relevant to complaint proceedings not already contained 
in the index of records should be added to the index as soon as a 
complaint is filed and retained until final disposition of the 
complaint. Records a carrier is directed to retain as the result of a 
proceeding or inquiry by the Commission to the extent not already 
contained in the index will also be added to the index and retained 
until final disposition of the proceeding or inquiry.

   Specific Instructions for Carriers Offering Interexchange Services



Sec. 42.10  Public availability of information concerning interexchange 

services.

    (a) A nondominant interexchange carrier (IXC) shall make available 
to any member of the public, in at least one location, during regular 
business hours, information concerning its current rates, terms and 
conditions for all of its international and interstate, domestic, 
interexchange services. Such information shall be made available in an 
easy to understand format and in a timely manner. Following an inquiry 
or complaint from the public concerning rates, terms and conditions for 
such services, a carrier shall specify that such information is 
available and the manner in which the public may obtain the information.
    (b) In addition, a nondominant IXC that maintains an Internet 
website shall make such rate and service information specified in 
paragraph (a) of this section available on-line at its Internet website 
in a timely and easily accessible manner, and shall update this 
information regularly.

[64 FR 19725, Apr. 22, 1999, as amended at 66 FR 16879, Mar. 28, 2001]



Sec. 42.11  Retention of information concerning detariffed interexchange 

services.

    (a) A nondominant IXC shall maintain, for submission to the 
Commission and to state regulatory commissions upon request, price and 
service information regarding all of the carrier's international and 
interstate, domestic, interexchange service offerings. A commercial 
mobile radio service (CMRS) provider shall maintain such price and

[[Page 7]]

service information only about its international common carrier service 
offerings and only for those routes on which the CMRS provider is 
classified as dominant under Sec. 63.10 of this Chapter due to an 
affiliation with a foreign carrier that collects settlement payments 
from U.S. carriers for terminating U.S. international switched traffic 
at the foreign end of the route. Such a CMRS provider is not required to 
maintain its price and service information, however, on any such 
affiliated route if it provides service on that route solely through the 
resale of an unaffiliated facilities-based provider's international 
switched services. The price and service information maintained for 
purposes of this paragraph shall include documents supporting the rates, 
terms, and conditions of the carrier's international and interstate, 
domestic, interexchange offerings. The information maintained pursuant 
to this section shall be maintained in a manner that allows the carrier 
to produce such records within ten business days. For purposes of this 
paragraph, affiliated and foreign carrier are defined in Sec. 63.09 of 
this chapter.
    (b) The price and service information maintained pursuant to this 
section shall be retained for a period of at least two years and six 
months following the date the carrier ceases to provide services 
pursuant to such rates, terms and conditions.

[61 FR 59366, Nov. 22, 1996, as amended at 62 FR 59604, Nov. 4, 1997; 64 
FR 19725, Apr. 22, 1999; 66 FR 16879, Mar. 28, 2001]



PART 43_REPORTS OF COMMUNICATION COMMON CARRIERS AND CERTAIN AFFILIATES--Table 

of Contents



Sec.
43.01 Applicability.
43.11 Reports of local exchange competition data.
43.21 Transactions with affiliates.
43.41 [Reserved]
43.43 Reports of proposed changes in depreciation rates.
43.51 Contracts and concessions.
43.61 Reports of international telecommunications traffic.
43.62 Reporting requirements for holders of international Section 214 
          authorizations and providers of international services.
43.72 [Reserved]
43.82 International circuit status reports.

    Authority: 47 U.S.C. 154; Telecommunications Act of 1996; Pub. L. 
104-104, sec. 402(b)(2)(B), (c), 110 Stat. 56 (1996) as amended unless 
otherwise noted. 47 U.S.C. 211, 219, 220, as amended; Cable Landing 
License Act of 1921, 47 U.S.C. 35-39.

    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

[[Page 8]]

the prior year) and September 1st (reporting data about their deployment 
of local exchange services as of June 31 of the current year). Common 
carriers becoming subject to the provisions of 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; 78 FR 49149, Aug. 13, 2013]



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.
    (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) and 
shall report the title of their certifying official.
    (c) Disclosure of data contained in FCC Form 477 will be addressed 
as follows:
    (1) Emergency operations contact information contained in FCC Form 
477 are information that should not be routinely available for public 
inspection pursuant to Sec. 0.457 of this chapter.
    (2) Respondents may make requests for Commission non-disclosure of 
the following data contained in FCC Form 477 under Sec. 0.459 of this 
chapter by so indicating on Form 477 at the time that the subject data 
are submitted:
    (i) Provider-specific subscription data and
    (ii) Provider-specific mobile deployment data that includes specific 
spectrum and speed parameters that may be used by providers for internal 
network planning purposes.
    (3) Respondents seeking confidential treatment of any other data 
contained in FCC Form 477 must submit a request that the data be treated 
as confidential with the submission of their Form 477 filing, along with 
their reasons for withholding the information from the public, pursuant 
to Sec. 0.459 of this chapter.
    (4) 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:
    (i) A state commission provided that the state commission has 
protections in place that would preclude disclosure of any confidential 
information, and
    (ii) ``Eligible entities,'' as those entities are defined in the 
Broadband Data Improvement Act, in an aggregated format and pursuant to 
confidentiality conditions prescribed by the Commission, and
    (iii) Others, to the extent that access to such data can be 
accomplished in a manner that addresses concerns about the competitive 
sensitivity of the data and precludes public 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; 78 FR 49149, Aug. 13, 2013]

    Effective Date Note: At 78 FR 49149, August 13, 2013, Sec. 43.11 
was amended by revising

[[Page 9]]

paragraphs (a), (b), and (c). This section contains information 
collection and recordkeeping requirements and will not become effective 
until approval has been given by the Office of Management and Budget.



Sec. 43.21  Transactions with affiliates.

    (a) Communication common carriers having annual operating revenues 
in excess of the indexed revenue threshold, as defined in Sec. 32.9000, 
and certain companies (as indicated in paragraph (b) of this section) 
directly or indirectly controlling such carriers shall file with the 
Commission annual reports or an annual letter as provided in this 
section. Except as provided in paragraph (b) of this section, each 
annual report required by this section shall be filed no later than 
April 1 of each year, covering the preceding calendar year. It shall be 
filed on the appropriate report form prescribed by the Commission (see 
Sec. 1.785 of this chapter) and shall contain full and specific answers 
to all questions propounded and information requested in the currently 
effective report forms. The number of copies to be filed shall be 
specified in the applicable report form. At least one copy of this 
report shall be signed on the signature page by the responsible 
accounting officer. A copy of each annual report shall be as retained in 
the principal office of the respondent and shall be filed in such manner 
to be readily available for reference and inspection.
    (b) Each company, not itself a communication common carrier, that 
directly or indirectly controls any communication common carrier that 
has annual operating revenues equal to or above the indexed revenue 
threshold, as defined in Sec. 32.9000, shall file annually with the 
Commission, not later than the date prescribed by the Securities and 
Exchange Commission for its purposes, two complete copies of any annual 
report Forms 10-K (or any superseding form) filed with that Commission.
    (c) Each miscellaneous common carrier (as defined by Sec. 21.2 of 
this chapter) with operating revenues for a calendar year in excess of 
the indexed revenue threshold, as defined in Sec. 32.9000, shall file 
with the Common Carrier Bureau Chief a letter showing its operating 
revenues for that year and the value of its total communications plant 
at the end of that year. This letter must be filed no later than April 1 
of the following year. Those miscellaneous common carriers with annual 
operating revenues that equal or surpass the indexed revenue threshold 
for the first time may file the letter up to one month after publication 
of the adjusted revenue threshold in the Federal Register, but in no 
event shall such carriers be required to file the letter prior to April 
1.
    (d) Each communications common carrier required by order to file a 
manual allocating its costs between regulated and nonregulated 
operations shall file, on or before April 1:
    (1) A three-year forecast of regulated and nonregulated use of 
network plant for the current calendar year and the two calendar years 
following, and investment pool projections and allocations for the 
current calendar year; and
    (2) A report of the actual use of network plant investment for the 
prior calendar year.
    (e) Each incumbent local exchange carrier, except mid-sized 
incumbent local exchange carriers, as defined by Sec. 32.9000 with 
annual operating revenues equal to or above the indexed revenue 
threshold shall file, no later than April 1 of each year:
    (1) Its revenues, expenses and investment for all accounts 
established in part 32 of this chapter, on an operating company basis,
    (2) The same part 32 of this chapter, on a study area basis, with 
data for regulated and nonregulated operations for those accounts which 
are related to the carrier's revenue requirement, and
    (3) The separations categories on a study area basis, with each 
category further divided into access elements and a nonaccess interstate 
category.
    (f) Each incumbent local exchange carrier with operating revenues 
for the preceding year that equal or exceed the indexed revenue 
threshold shall file, no later than April 1 of each year, a report 
showing for the previous calendar year its revenues, expenses, taxes, 
plant in service, other investment and depreciation reserves, and other 
such data as are required by the Commission, on computer media 
prescribed by the

[[Page 10]]

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 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

[[Page 11]]

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 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.

[[Page 12]]

    (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 (collectively hereinafter referred to as 
``agreement'' for purposes of this rule) 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 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; 
or
    (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.
    (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, other than a provider of commercial mobile 
radio services, that is engaged in foreign communications, and enters 
into an agreement with a foreign carrier, is subject to the Commission's 
authority to require the U.S. carrier providing service on any U.S.-
international routes to file, on an as-needed basis, a copy of each 
agreement to which it is a party.

    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.

[66 FR 16879, Mar. 28, 2001, as amended at 69 FR 23153, Apr. 28, 2004; 
78 FR 11112, Feb. 15, 2013]

    Effective Date Note: At 78 FR 11112, Feb. 15, 2013, Sec. 43.51 was 
amended by revising paragraph (d). This paragraph (d) contains 
information collection and recordkeeping requirements and will not 
become effective until approval has been given by the Office of 
Management and Budget.

[[Page 13]]



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.
    (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]

    Effective Date Note: At 78 FR 15623, Mar. 12, 2013, Sec. 43.61 was 
removed. This section contains information collection and recordkeeping 
requirements and will not become effective until approval has been given 
by the Office of Management and Budget.



Sec. 43.62  Reporting requirements for holders of international Section 214 

authorizations and providers of international services.

    (a) Circuit Capacity Reports. Not later than March 31 of each year:
    (1) Satellite and Terrestrial Circuits. Each facilities-based common 
carrier shall file a report showing its active common carrier circuits 
between the United States and any foreign point as of December 31 of the 
preceding calendar year in any terrestrial or satellite facility for the 
provision of service to an end user or resale carrier, which includes 
active circuits used by themselves or their affiliates. Each non-common 
carrier satellite licensee shall file a report showing its active 
circuits between the United States and any foreign point as of December 
31 of the preceding calendar sold or leased to any customer, including 
themselves or their affiliates, other than a carrier authorized by the 
Commission to provide U.S. international common carrier services.
    (2) International Submarine Cable Capacity--(i) The licensee(s) of a 
submarine cable between the United States and any foreign point shall 
file a report showing the capacity of the submarine cable as of December 
31 of the preceding calendar year. The licensee(s) shall also file a 
report showing the planned capacity of the submarine cable (the intended 
capacity of the submarine cable two years from December 31 of the 
preceding calendar year). Only one cable landing licensee shall file the 
capacity data for each submarine cable. For cables with more than one 
licensee, the licensees shall determine which licensee will file the 
reports.
    (ii) Each cable landing licensee and common carrier shall file a 
report showing its capacity on submarine cables between the United 
States and any foreign point as of December 31 of the preceding calendar 
year.
    (b) Traffic and revenue reports. (1) Not later than July 31 of each 
year, each person or entity that holds an authorization pursuant to 
section 214 to provide international telecommunications service shall 
report whether it provided international telecommunications services 
during the preceding calendar year.
    (2) Not later than July 31 of each year, each common carrier engaged 
in providing international telecommunications service, and each person 
or entity engaged in providing Voice over Internet Protocol service 
connected to the public switched telephone network, between the United 
States and any foreign point shall file a report with the

[[Page 14]]

Commission showing revenues, payouts, and traffic for such international 
telecommunications service and Voice over Internet Protocol service 
connected to the public switched telephone network provided during the 
preceding calendar year.
    (3) Entities filing such reports shall submit a revised report by 
October 31 identifying and correcting any inaccuracies included in the 
annual report exceeding one percent of the reported figure.

    Note to paragraphs (a) and (b): United States is defined in section 
3 of the Communications Act of 1934, as amended, 47 U.S.C. 153.

    (c)(1) A Registration Form, containing information about the filer, 
such as address, phone number, email address, etc., shall be filed with 
each report filed pursuant to paragraphs (a) and (b).
    (2) The Registration Form shall include a certification enabling the 
filer to check a box to indicate that the filer requests that its 
circuit capacity data or traffic and revenue data be treated as 
confidential. If a filer checks that box, the Commission shall treat the 
data contained in the accompanying report as confidential. Upon receipt 
of a request for inspection of such information, the Commission shall 
notify the filer; at that point, the filer must justify continued 
confidentiality of the information consistent with section 0.459(b) of 
the Commission's rules.
    (d) Filing Manual. Authority is delegated to the Chief, 
International Bureau to prepare instructions and reporting requirements 
for the filing of these reports prepared and published as a Filing 
Manual. The information required under this section shall be furnished 
in conformance with the instructions and reporting requirements in the 
Filing Manual.

    Note to paragraph (d): The instructions and reporting requirements 
prepared by the Chief, International Bureau, shall be consistent with 
the terms of Reporting Requirements for U.S. Providers of International 
Telecommunications Services; Amendment of Part 43 of the Commission's 
Rules, IB Docket No. 04-112, Second Report and Order, FCC 13-6 (rel. 
January 15, 2013).

[78 FR 15623, Mar. 12, 2013]

    Effective Date Note: At 78 FR 15623, Mar. 12, 2013, Sec. 43.62 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. 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]

    Effective Date Note: At 78 FR 15623, Mar. 12, 2013, Sec. 43.82 was 
removed. 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 51_INTERCONNECTION--Table of Contents



                      Subpart A_General Information

Sec.
51.1 Basis and purpose.

[[Page 15]]

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.
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.

[[Page 16]]

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.



                      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.

[[Page 17]]

    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.
    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

[[Page 18]]

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.
    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.

[[Page 19]]

    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;
    (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:

[[Page 20]]

    (i) Any incorporated place of 10,000 inhabitants or more, or any 
part thereof, based on the most recently available population statistics 
of the Bureau of the Census; or
    (ii) Any territory, incorporated or unincorporated, included in an 
urbanized area, as defined by the Bureau of the Census as of August 10, 
1993;
    (2) Provides telephone exchange service, including exchange access, 
to fewer than 50,000 access lines;
    (3) Provides telephone exchange service to any local exchange 
carrier study area with fewer than 100,000 access lines; or
    (4) Has less than 15 percent of its access lines in communities of 
more than 50,000 on February 8, 1996.
    Service control point. A service control point is a computer 
database in the public switched network which contains information and 
call processing instructions needed to process and complete a telephone 
call.
    Service creation environment. A service creation environment is a 
computer containing generic call processing software that can be 
programmed to create new advanced intelligent network call processing 
services.
    Service provider. A service provider is a provider of 
telecommunications services or a provider of information services.
    Signal transfer point. A signal transfer point is a packet switch 
that acts as a routing hub for a signaling network and transfers 
messages between various points in and among signaling networks.
    State. The term state includes the District of Columbia and the 
Territories and possessions.
    State commission. A state commission means the commission, board, or 
official (by whatever name designated) which under the laws of any state 
has regulatory jurisdiction with respect to intrastate operations of 
carriers. As referenced in this part, this term may include the 
Commission if it assumes 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

[[Page 21]]

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.
    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

[[Page 22]]

251(c)(3) of the Act, may offer information services through the same 
arrangement, so long as it is offering telecommunications services 
through the same arrangement as well.



          Subpart C_Obligations of All Local Exchange Carriers



Sec. 51.201  Resale.

    The rules governing resale of services by an incumbent LEC are set 
forth in subpart G of this part.



Sec. 51.203  Number portability.

    The rules governing number portability are set forth in part 52, 
subpart C of this chapter.



Sec. 51.205  Dialing parity: General.

    A local exchange carrier (LEC) shall provide local and toll dialing 
parity to competing providers of telephone exchange service or telephone 
toll service, with no unreasonable dialing delays. Dialing parity shall 
be provided for all originating telecommunications services that require 
dialing to route a call.

[61 FR 47349, Sept. 6, 1996]



Sec. 51.207  Local dialing parity.

    A LEC shall permit telephone exchange service customers within a 
local calling area to dial the same number of digits to make a local 
telephone call notwithstanding the identity of the customer's or the 
called party's telecommunications service provider.

[61 FR 47349, Sept. 6, 1996]



Sec. 51.209  Toll dialing parity.

    (a) A LEC shall implement throughout each state in which it offers 
telephone exchange service intraLATA and interLATA toll dialing parity 
based on LATA boundaries. When a single LATA covers more than one state, 
the LEC shall use the implementation procedures that each state has 
approved for the LEC within that state's borders.
    (b) A LEC shall implement toll dialing parity through a 
presubscription process that permits a customer to select a carrier to 
which all designated calls on a customer's line will be routed 
automatically. LECs shall allow a customer to presubscribe, at a 
minimum, to one telecommunications carrier for all interLATA toll calls 
and to presubscribe to the same or to another telecommunications carrier 
for all intraLATA toll calls.
    (c) A LEC may not assign automatically a customer's intraLATA toll 
traffic to itself, to its subsidiaries or affiliates, to the customer's 
presubscribed interLATA or interstate toll carrier, or to any other 
carrier, except when, in a state that already has implemented 
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

[[Page 23]]

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:
    (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

[[Page 24]]

shall be made in the same format as the initial transfer (unless the 
requesting LEC requests otherwise), and shall be performed in a timely 
manner, taking no longer than those made to the providing LEC's own 
database. A LEC shall accept the listings of those customers served by 
competing providers for inclusion in its directory assistance/operator 
services databases.
    (ii) Access to directory listings. A LEC that compiles directory 
listings shall share directory listings with competing providers in the 
manner specified by the competing provider, including readily accessible 
tape or electronic formats, as provided in paragraph (c)(3)(iii) of this 
section. Such data shall be provided in a timely fashion.
    (iii) Format. A LEC shall provide access to its directory assistance 
services, including directory assistance databases, and to its directory 
listings in any format the competing provider specifies, if the LEC's 
internal systems can accommodate that format.
    (A) If a LEC's internal systems do not permit it provide directory 
assistance or directory listings in the format the specified by the 
competing provider, the LEC shall:
    (1) Within thirty days of receiving the request, inform the 
competing provider that the requested format cannot be accommodated and 
tell the requesting provider which formats can be accommodated; and
    (2) Provide the requested directory assistance or directory listings 
in the format the competing provider chooses from among the available 
formats.
    (B) [Reserved]
    (iv) Unlisted numbers. A LEC shall not provide access to unlisted 
telephone numbers, or other information that its customer has asked the 
LEC not to make available, with the exception of customer name and 
address. The LEC shall ensure that access is permitted to the same 
directory information, including customer name and address, that is 
available to its own directory assistance customers.
    (v) Adjuncts to services. Operator services and directory assistance 
services must be made available to competing providers in their 
entirety, including access to any adjunct features (e.g., rating tables 
or customer information databases) necessary to allow competing 
providers full use of these services.
    (d) Branding of operator services and directory assistance services. 
The refusal of a providing local exchange carrier (LEC) to comply with 
the reasonable request of a competing provider that the providing LEC 
rebrand its operator services and directory assistance, or remove its 
brand from such services, creates a presumption that the providing LEC 
is unlawfully restricting access to its operator services and directory 
assistance. The providing LEC can rebut this presumption by 
demonstrating that it lacks the capability to comply with the competing 
provider's request.
    (e) Disputes--(1) Disputes involving nondiscriminatory access. In 
disputes involving nondiscriminatory access to operator services, 
directory assistance services, or directory listings, a providing LEC 
shall bear the burden of demonstrating with specificity:
    (i) That it is permitting nondiscriminatory access, and
    (ii) That any disparity in access is not caused by factors within 
its control. ``Factors within its control'' include, but are not limited 
to, physical facilities, staffing, the ordering of supplies or 
equipment, and maintenance.
    (2) Disputes involving unreasonable dialing delay. In disputes 
between providing local exchange carriers (LECs) and competing providers 
involving unreasonable dialing delay in the provision of access to 
operator services and directory assistance, the burden of proof is on 
the providing LEC to demonstrate with specificity that it is 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]



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.

[[Page 25]]



Sec. 51.223  Application of additional requirements.

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



Sec. 51.230  Presumption of acceptability for deployment of an advanced 

services loop technology.

    (a) An advanced services loop technology is presumed acceptable for 
deployment under any one of the following circumstances, where the 
technology:
    (1) Complies with existing industry standards; or
    (2) Is approved by an industry standards body, the Commission, or 
any state commission; or
    (3) Has been successfully deployed by any carrier without 
significantly degrading the performance of other services.
    (b) An incumbent LEC may not deny a carrier's request to deploy a 
technology that is presumed acceptable for deployment unless the 
incumbent LEC demonstrates to the relevant state commission that 
deployment of the particular technology will significantly degrade the 
performance of other advanced services or traditional voiceband 
services.
    (c) Where a carrier seeks to establish that deployment of a 
technology falls within the presumption of acceptability under paragraph 
(a)(3) of this section, the burden is on the requesting carrier to 
demonstrate to the state commission that its proposed deployment meets 
the threshold for a presumption of acceptability and will not, in fact, 
significantly degrade the performance of other advanced services or 
traditional voice band services. Upon a successful demonstration by the 
requesting carrier before a particular state commission, the deployed 
technology shall be presumed acceptable for deployment in other areas.

[65 FR 1345, Jan. 10, 2000]



Sec. 51.231  Provision of information on advanced services deployment.

    (a) An incumbent LEC must provide to requesting carriers that seek 
access to a loop or high frequency portion of the loop to provide 
advanced services:
    (1) Uses in determining which services can be deployed; and 
information with respect to the spectrum management procedures and 
policies that the incumbent LEC.
    (2) Information with respect to the rejection of the requesting 
carrier's provision of advanced services, together with the specific 
reason for the rejection; and
    (3) Information with respect to the number of loops using advanced 
services technology within the binder and type of technology deployed on 
those loops.
    (b) A requesting carrier that seeks access to a loop or a high 
frequency portion of a loop to provide advanced services must provide to 
the incumbent LEC information on the type of technology that the 
requesting carrier seeks to deploy.
    (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]

[[Page 26]]



Sec. 51.232  Binder group management.

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

[65 FR 1346, Jan. 10, 2000]



Sec. 51.233  Significant degradation of services caused by deployment of 

advanced services.

    (a) Where a carrier claims that a deployed advanced service is 
significantly degrading the performance of other advanced services or 
traditional voiceband services, that carrier must notify the deploying 
carrier and allow the deploying carrier a reasonable opportunity to 
correct the problem. Where the carrier whose services are being degraded 
does not know the precise cause of the degradation, it must notify each 
carrier that may have caused or contributed to the degradation.
    (b) Where the degradation asserted under paragraph (a) of this 
section remains unresolved by the deploying carrier(s) after a 
reasonable opportunity to correct the problem, the carrier whose 
services are being degraded must establish before the relevant state 
commission that a particular technology deployment is causing the 
significant degradation.
    (c) Any claims of network harm presented to the deploying carrier(s) 
or, if subsequently necessary, the relevant state commission, must be 
supported with specific and verifiable information.
    (d) Where a carrier demonstrates that a deployed technology is 
significantly degrading the performance of other advanced services or 
traditional voice band services, the carrier deploying the technology 
shall discontinue deployment of that technology and migrate its 
customers to technologies that will not significantly degrade the 
performance of other such services.
    (e) Where the only degraded service itself is a known disturber, and 
the newly deployed technology satisfies at least one of the criteria for 
a presumption that it is acceptable for deployment under Sec. 51.230, 
the degraded service shall not prevail against the newly-deployed 
technology.

[65 FR 1346, Jan. 10, 2000]



  Subpart D_Additional Obligations of Incumbent Local Exchange Carriers



Sec. 51.301  Duty to negotiate.

    (a) An incumbent LEC shall negotiate in good faith the terms and 
conditions of agreements to fulfill the duties established by sections 
251 (b) and (c) of the Act.
    (b) A requesting telecommunications carrier shall negotiate in good 
faith the terms and conditions of agreements described in paragraph (a) 
of this section.
    (c) If proven to the Commission, an appropriate state commission, or 
a court of competent jurisdiction, the following actions or practices, 
among others, violate the duty to negotiate in good faith:
    (1) Demanding that another party sign a nondisclosure agreement that 
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;

[[Page 27]]

    (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 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

[[Page 28]]

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 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

[[Page 29]]

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 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

[[Page 30]]

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 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

[[Page 31]]

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 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

[[Page 32]]

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 (8) 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-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 (5) of this section.
    (i) 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. 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

[[Page 33]]

end-user customer premises, and includes the high frequency portion of 
any inside wire owned or controlled by the incumbent LEC.
    (A) An incumbent LEC's obligation, under paragraph (a)(1)(i) 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 from the incumbent LEC.
    (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.
    (ii) 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 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, 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 have, under 
paragraphs (a) and (b) of this section, to access 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.
    (iii) 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.
    (iv) 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 through a 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.
    (2) Hybrid loops. A hybrid loop is a local loop composed of both 
fiber optic cable, usually in the feeder plant, and

[[Page 34]]

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 copper loops pursuant to paragraph 
(a)(3)(iv) of this section.

[[Page 35]]

    (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.
    (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.
    (6) Dark fiber loops. 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.
    (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. Routine network modifications may

[[Page 36]]

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 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

[[Page 37]]

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 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) 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 (d) through (d)(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 
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.

[[Page 38]]

    (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 in 
paragraphs (d)(2)(ii)(A) and (B) of this section. 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 (d)(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.
    (iii) Dedicated DS3 transport. Dedicated DS3 transport shall be made 
available to requesting carriers on an unbundled basis as set forth in 
paragraphs (d)(2)(iii)(A) and(B) of this section. 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 (d)(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.
    (iv) Dark fiber transport. Dark fiber transport consists of 
unactivated optical interoffice transmission facilities. Incumbent LECs 
shall unbundle dark fiber transport between any pair of incumbent LEC 
wire centers except where, through application of tier classifications 
described in paragraph (d)(3) of this section, both wire centers 
defining the route are either Tier 1 or Tier 2 wire centers. 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.
    (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

[[Page 39]]

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.
    (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.
    (e) 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.
    (f) 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, 2005:78 FR 5746, Jan. 28, 2013]



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.

[[Page 40]]

    (c) A previously successful method of obtaining interconnection or 
access to unbundled network elements at a particular premises or point 
on any incumbent LEC's network is substantial evidence that such method 
is technically feasible in the case of substantially similar network 
premises or points. A requesting telecommunications carrier seeking a 
particular collocation arrangement, either physical or virtual, is 
entitled to a presumption that such arrangement is technically feasible 
if any LEC has deployed such collocation arrangement in any incumbent 
LEC premises.
    (d) An incumbent LEC that denies a request for a particular method 
of obtaining interconnection or access to unbundled network elements on 
the incumbent LEC's network must prove to the state commission that the 
requested method of obtaining interconnection or access to unbundled 
network elements at that point is not technically feasible.
    (e) An incumbent LEC shall not be required to provide for physical 
collocation of equipment necessary for interconnection or access to 
unbundled network elements at the incumbent LEC's premises if it 
demonstrates to the state commission that physical collocation is not 
practical for technical reasons or because of space limitations. In such 
cases, the incumbent LEC shall be required to provide virtual 
collocation, except at points where the incumbent LEC proves to the 
state commission that virtual collocation is not technically feasible. 
If virtual collocation is not technically feasible, the incumbent LEC 
shall provide other methods of interconnection and access to unbundled 
network elements to the extent technically feasible.
    (f) An incumbent LEC shall submit to the state commission, subject 
to any protective order as the state commission may deem necessary, 
detailed floor plans or diagrams of any premises where the incumbent LEC 
claims that physical collocation is not practical because of space 
limitations. These 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]

[[Page 41]]



Sec. 51.323  Standards for physical collocation and virtual collocation.

    (a) An incumbent LEC shall provide physical collocation and virtual 
collocation to requesting telecommunications carriers.
    (b) An incumbent LEC shall permit the collocation and use of any 
equipment necessary for interconnection or access to unbundled network 
elements.
    (1) Equipment is necessary for interconnection if an inability to 
deploy that equipment would, as a practical, economic, or operational 
matter, preclude the requesting carrier from obtaining interconnection 
with the incumbent LEC at a level equal in quality to that which the 
incumbent obtains within its own network or the incumbent provides to 
any affiliate, subsidiary, or other party.
    (2) Equipment is necessary for access to an unbundled network 
element if an inability to deploy that equipment would, as a practical, 
economic, or operational matter, preclude the requesting carrier from 
obtaining nondiscriminatory access to that unbundled network element, 
including any of its features, functions, or capabilities.
    (3) Multi-functional equipment shall be deemed necessary for 
interconnection or access to an unbundled network element if and only if 
the primary purpose and function of the equipment, as the requesting 
carrier seeks to deploy it, meets either or both of the standards set 
forth in paragraphs (b)(1) and (b)(2) of this section. For a piece of 
equipment to be utilized primarily to obtain equal in quality 
interconnection or nondiscriminatory access to one or more unbundled 
network elements, there also must be a logical nexus between the 
additional functions the equipment would perform and the 
telecommunication services the requesting carrier seeks to provide to 
its customers by means of the interconnection or unbundled network 
element. The collocation of those functions of the equipment that, as 
stand-alone functions, do not meet either of the standards set forth in 
paragraphs (b)(1) and (b)(2) of this section must not cause the 
equipment to significantly increase the burden on the incumbent's 
property.
    (c) Whenever an incumbent LEC objects to collocation of equipment by 
a requesting telecommunications carrier for purposes within the scope of 
section 251(c)(6) of the Act, the incumbent LEC shall prove to the state 
commission that the equipment is not necessary for interconnection or 
access to unbundled network elements under the standards set forth in 
paragraph (b) of this section. An incumbent LEC may not object to the 
collocation of equipment on the grounds that the equipment does not 
comply with safety or engineering standards that are more stringent than 
the safety or engineering standards that the incumbent LEC applies to 
its own equipment. An incumbent LEC may not object to the collocation of 
equipment on the ground that the equipment fails to comply with Network 
Equipment and Building Specifications performance standards or any other 
performance standards. An incumbent LEC that denies collocation of a 
competitor's equipment, citing safety standards, must provide to the 
competitive LEC within five business days of the denial a list of all 
equipment that the incumbent LEC locates at the premises in question, 
together with an affidavit attesting that all of that equipment meets or 
exceeds the safety standard that the incumbent LEC contends the 
competitor's equipment fails to meet. This affidavit must set forth in 
detail: the exact safety requirement that the requesting carrier's 
equipment does not satisfy; the incumbent LEC's basis for concluding 
that the requesting carrier's equipment does not meet this safety 
requirement; and the incumbent LEC's basis for concluding why 
collocation of equipment not meeting this safety requirement would 
compromise network safety.
    (d) When an incumbent LEC provides physical collocation, virtual 
collocation, or both, the incumbent LEC shall:
    (1) Provide an interconnection point or points, physically 
accessible by both the incumbent LEC and the collocating 
telecommunications carrier, at which the fiber optic cable carrying an 
interconnector's circuits can enter the incumbent LEC's premises, 
provided that the incumbent LEC shall designate interconnection points 
as close as reasonably possible to its premises;

[[Page 42]]

    (2) Provide at least two such interconnection points at each 
incumbent LEC premises at which there are at least two entry points for 
the incumbent LEC's cable facilities, and at which space is available 
for new facilities in at least two of those entry points;
    (3) Permit interconnection of copper or coaxial cable if such 
interconnection is first approved by the state commission; and
    (4) Permit physical collocation of microwave transmission facilities 
except where such collocation is not practical for technical reasons or 
because of space limitations, in which case virtual collocation of such 
facilities is required where technically feasible.
    (e) When providing virtual collocation, an incumbent LEC shall, at a 
minimum, install, maintain, and repair collocated equipment meeting the 
standards set forth in paragraph (b) of this section within the same 
time periods and with failure rates that are no greater than those that 
apply to the performance of similar functions for comparable equipment 
of the incumbent LEC itself.
    (f) An incumbent LEC shall provide space for the collocation of 
equipment meeting the standards set forth in paragraph (b) of this 
section in accordance with the following requirements:
    (1) An incumbent LEC shall make space available within or on its 
premises to requesting telecommunications carriers on a first-come, 
first-served basis, provided, however, that the incumbent LEC shall not 
be required to lease or construct additional space to provide for 
physical collocation when existing space has been exhausted;
    (2) To the extent possible, an incumbent LEC shall make contiguous 
space available to requesting telecommunications carriers that seek to 
expand their existing collocation space;
    (3) When planning renovations of existing facilities or constructing 
or leasing new facilities, an incumbent LEC shall take into account 
projected demand for collocation of equipment;
    (4) An incumbent LEC may retain a limited amount of floor space for 
its own specific future uses, provided, however, that neither the 
incumbent LEC nor any of its affiliates may reserve space for future use 
on terms more favorable than those that apply to other 
telecommunications carriers seeking to reserve collocation space for 
their own future use;
    (5) An incumbent LEC shall relinquish any space held for future use 
before denying a request for virtual collocation on the grounds of space 
limitations, unless the incumbent LEC proves to the state commission 
that virtual collocation at that point is not technically feasible; and
    (6) An incumbent LEC may impose reasonable restrictions on the 
warehousing of unused space by collocating telecommunications carriers, 
provided, however, that the incumbent LEC shall not set maximum space 
limitations applicable to such carriers unless the incumbent LEC proves 
to the state commission that space constraints make such restrictions 
necessary.
    (7) An incumbent LEC must assign collocation space to requesting 
carriers in a just, reasonable, and nondiscriminatory manner. An 
incumbent LEC must allow each carrier requesting physical collocation to 
submit space preferences prior to assigning physical collocation space 
to that carrier. At a minimum, an incumbent LEC's space assignment 
policies and practices must meet the following principles:
    (A) An incumbent LEC's space assignment policies and practices must 
not materially increase a requesting carrier's collocation costs.
    (B) An incumbent LEC's space assignment policies and practices must 
not materially delay a requesting carrier occupation and use of the 
incumbent LEC's premises.
    (C) An incumbent LEC must not assign physical collocation space that 
will impair the quality of service or impose other limitations on the 
service a requesting carrier wishes to offer.
    (D) An incumbent LEC's space assignment policies and practices must 
not reduce unreasonably the total space available for physical 
collocation or preclude unreasonably physical collocation within the 
incumbent's premises.

[[Page 43]]

    (g) An incumbent LEC shall permit collocating telecommunications 
carriers to collocate equipment and connect such equipment to unbundled 
network transmission elements obtained from the incumbent LEC, and shall 
not require such telecommunications carriers to bring their own 
transmission facilities to the incumbent LEC's premises in which they 
seek to collocate equipment.
    (h) As described in paragraphs (1) and (2) of this section, an 
incumbent LEC shall permit a collocating telecommunications carrier to 
interconnect its network with that of another collocating 
telecommunications carrier at the incumbent LEC's premises and to 
connect its collocated equipment to the collocated equipment of another 
telecommunications carrier within the same premises, provided that the 
collocated equipment is also used for interconnection with the incumbent 
LEC or for access to the incumbent LEC's unbundled network elements.
    (1) An incumbent LEC shall provide, at the request of a collocating 
telecommunications carrier, a connection between the equipment in the 
collocated spaces of two or more telecommunications carriers, except to 
the extent the incumbent LEC permits the collocating parties to provide 
the requested connection for themselves or a connection is not required 
under paragraph (h)(2) of this section. Where technically feasible, the 
incumbent LEC shall provide the connection using copper, dark fiber, lit 
fiber, or other transmission medium, as requested by the collocating 
telecommunications carrier.
    (2) An incumbent LEC is not required to provide a connection between 
the equipment in the collocated spaces of two or more telecommunications 
carriers if the connection is requested pursuant to section 201 of the 
Act, unless the requesting carrier submits to the incumbent LEC a 
certification that more than 10 percent of the amount of traffic to be 
transmitted through the connection will be interstate. The incumbent LEC 
cannot refuse to accept the certification, but instead must provision 
the service promptly. Any incumbent LEC may file a section 208 complaint 
with the Commission challenging the certification if it believes that 
the certification is deficient. No such certification is required for a 
request for such connection under section 251 of the Act.
    (i) As provided herein, an incumbent LEC may require reasonable 
security arrangements to protect its equipment and ensure network 
reliability. An incumbent LEC may only impose security arrangements that 
are as stringent as the security arrangements that the incumbent LEC 
maintains at its own premises for its own employees or authorized 
contractors. An incumbent LEC must allow collocating parties to access 
their collocated equipment 24 hours a day, seven days a week, without 
requiring either a security escort of any kind or delaying a 
competitor's employees' entry into the incumbent LEC's premises. An 
incumbent LEC may require a collocating carrier to pay only for the 
least expensive, effective security option that is viable for the 
physical collocation space assigned. Reasonable security measures that 
the incumbent LEC may adopt include:
    (1) Installing security cameras or other monitoring systems; or
    (2) Requiring competitive LEC personnel to use badges with 
computerized tracking systems; or
    (3) Requiring competitive LEC employees to undergo the same level of 
security training, or its equivalent, that the incumbent's own 
employees, or third party contractors providing similar functions, must 
undergo; provided, however, that the incumbent LEC may not require 
competitive LEC employees to receive such training from the incumbent 
LEC itself, but must provide information to the competitive LEC on the 
specific type of training required so the competitive LEC's employees 
can conduct their own training.
    (4) Restricting physical collocation to space separated from space 
housing the incumbent LEC's equipment, provided that each of the 
following conditions is met:
    (i) Either legitimate security concerns, or operational constraints 
unrelated to the incumbent's or any of its

[[Page 44]]

affiliates' or subsidiaries competitive concerns, warrant such 
separation;
    (ii) Any physical collocation space assigned to an affiliate or 
subsidiary of the incumbent LEC is separated from space housing the 
incumbent LEC's equipment;
    (iii) The separated space will be available in the same time frame 
as, or a shorter time frame than, non-separated space;
    (iv) The cost of the separated space to the requesting carrier will 
not be materially higher than the cost of non-separated space; and
    (v) The separated space is comparable, from a technical and 
engineering standpoint, to non-separated space.
    (5) Requiring the employees and contractors of collocating carriers 
to use a central or separate entrance to the incumbent's building, 
provided, however, that where an incumbent LEC requires that the 
employees or contractors of collocating carriers access collocated 
equipment only through a separate entrance, employees and contractors of 
the incumbent LEC's affiliates and subsidiaries must be subject to the 
same restriction.
    (6) Constructing or requiring the construction of a separate 
entrance to access physical collocation space, provided that each of the 
following conditions is met:
    (i) Construction of a separate entrance is technically feasible;
    (ii) Either legitimate security concerns, or operational constraints 
unrelated to the incumbent's or any of its affiliates' or subsidiaries 
competitive concerns, warrant such separation;
    (iii) Construction of a separate entrance will not artificially 
delay collocation provisioning; and
    (iv) Construction of a separate entrance will not materially 
increase the requesting carrier's costs.
    (j) An incumbent LEC shall permit a collocating telecommunications 
carrier to subcontract the construction of physical collocation 
arrangements with contractors approved by the incumbent LEC, provided, 
however, that the incumbent LEC shall not unreasonably withhold approval 
of contractors. Approval by an incumbent LEC shall be based on the same 
criteria it uses in approving contractors for its own purposes.
    (k) An incumbent LEC's physical collocation offering must include 
the following:
    (1) Shared collocation cages. A shared collocation cage is a caged 
collocation space shared by two or more competitive LECs pursuant to 
terms and conditions agreed to by the competitive LECs. In making shared 
cage arrangements available, an incumbent LEC may not increase the cost 
of site preparation or nonrecurring charges above the cost for 
provisioning such a cage of similar dimensions and material to a single 
collocating party. In addition, the incumbent must prorate the charge 
for site conditioning and preparation undertaken by the incumbent to 
construct the shared collocation cage or condition the space for 
collocation use, regardless of how many carriers actually collocate in 
that cage, by determining the total charge for site preparation and 
allocating that charge to a collocating carrier based on the percentage 
of the total space utilized by that carrier. An incumbent LEC must make 
shared collocation space available in single-bay increments or their 
equivalent, i.e., a competing carrier can purchase space in increments 
small enough to collocate a single rack, or bay, of equipment.
    (2) Cageless collocation. Incumbent LECs must allow competitors to 
collocate without requiring the construction of a cage or similar 
structure. Incumbent LECs must permit collocating carriers to have 
direct access to their equipment. An incumbent LEC may not require 
competitors to use an intermediate interconnection arrangement in lieu 
of direct connection to the incumbent's network if technically feasible. 
An incumbent LEC must make cageless collocation space available in 
single-bay increments, meaning that a competing carrier can purchase 
space in increments small enough to collocate a single rack, or bay, of 
equipment.
    (3) Adjacent space collocation. An incumbent LEC must make 
available, where physical collocation space is legitimately exhausted in 
a particular incumbent LEC structure, collocation in adjacent controlled 
environmental

[[Page 45]]

vaults, controlled environmental huts, or similar structures located at 
the incumbent LEC premises to the extent technically feasible. The 
incumbent LEC must permit a requesting telecommunications carrier to 
construct or otherwise procure such an adjacent structure, subject only 
to reasonable safety and maintenance requirements. The incumbent must 
provide power and physical collocation services and facilities, subject 
to the same nondiscrimination requirements as applicable to any other 
physical collocation arrangement. The incumbent LEC must permit the 
requesting carrier to place its own equipment, including, but not 
limited to, copper cables, coaxial cables, fiber cables, and 
telecommunications equipment, in adjacent facilities constructed by the 
incumbent LEC, the requesting carrier, or a third-party. If physical 
collocation space becomes available in a previously exhausted incumbent 
LEC structure, the incumbent LEC must not require a carrier to move, or 
prohibit a competitive LEC from moving, a collocation arrangement into 
that structure. Instead, the incumbent LEC must continue to allow the 
carrier to collocate in any adjacent controlled environmental vault, 
controlled environmental vault, or similar structure that the carrier 
has constructed or otherwise procured.
    (l) An incumbent LEC must offer to provide and provide all forms of 
physical collocation (i.e., caged, cageless, shared, and adjacent) 
within the following deadlines, except to the extent a state sets its 
own deadlines or the incumbent LEC has demonstrated to the state 
commission that physical collocation is not practical for technical 
reasons or because of space limitations.
    (1) Within ten days after receiving an application for physical 
collocation, an incumbent LEC must inform the requesting carrier whether 
the application meets each of the incumbent LEC's established 
collocation standards. A requesting carrier that resubmits a revised 
application curing any deficiencies in an application for physical 
collocation within ten days after being informed of them retains its 
position within any collocation queue that the incumbent LEC maintains 
pursuant to paragraph (f)(1) of this section.
    (2) Except as stated in paragraphs (l)(3) and (l)(4) of this 
section, an incumbent LEC must complete provisioning of a requested 
physical collocation arrangement within 90 days after receiving an 
application that meets the incumbent LEC's established collocation 
application standards.
    (3) An incumbent LEC need not meet the deadline set forth in 
paragraph (l)(2) of this section if, after receipt of any price 
quotation provided by the incumbent LEC, the telecommunications carrier 
requesting collocation does not notify the incumbent LEC that physical 
collocation should proceed.
    (4) If, within seven days of the requesting carrier's receipt of any 
price quotation provided by the incumbent LEC, the telecommunications 
carrier requesting collocation does not notify the incumbent LEC that 
physical collocation should proceed, then the incumbent LEC need not 
complete provisioning of a requested physical collocation arrangement 
until 90 days after receiving such notification from the requesting 
telecommunications carrier.

[61 FR 45619, Aug. 28, 1996, as amended at 64 FR 23242, Apr. 30, 1999; 
65 FR 54439, Sept. 8, 2000; 66 FR 43521, Aug. 20, 2001]



Sec. 51.325  Notice of network changes: Public notice requirement.

    (a) An incumbent local exchange carrier (``LEC'') must provide 
public notice regarding any network change that:
    (1) Will affect a competing service provider's performance or 
ability to provide service;
    (2) Will affect the incumbent LEC's interoperability with other 
service providers; or
    (3) Will affect the manner in which customer premises equipment is 
attached to the interstate network.
    (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

[[Page 46]]

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 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

[[Page 47]]

months before implementation, except as provided below:
    (1) If the changes can be implemented within twelve months of the 
make/buy point, public notice must be given at the make/buy point, but 
at least six months before implementation.
    (2) If the changes can be implemented within six months of the make/
buy point, public notice may be given pursuant to the short term notice 
procedures provided in Sec. 51.333.
    (b) For purposes of this section, the make/buy point is the time at 
which an incumbent LEC decides to make for itself, or to procure from 
another entity, any product the design of which affects or relies on a 
new or changed network interface. If an incumbent LEC's planned changes 
do not require it to make or to procure a product, then the make/buy 
point is the point at which the incumbent LEC makes a definite decision 
to implement a network change.
    (1) For purposes of this section, a product is any hardware r 
software for use in an incumbent LEC's network or in conjunction with 
its facilities that, when installed, could affect the compatibility of 
an interconnected service provider's network, facilities or services 
with an incumbent LEC's existing telephone network, facilities or 
services, or with any of an incumbent carrier's services or 
capabilities.
    (2) For purposes of this section a definite decision is reached when 
an incumbent LEC determines that the change is warranted, establishes a 
timetable for anticipated implementation, and takes any action toward 
implementation of the change within its network.
    (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

[[Page 48]]

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 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

[[Page 49]]

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 must include, in addition to the information identified in 
Sec. 51.327(a), a statement that the incumbent LEC will make further 
information available to those signing a nondisclosure agreement.
    (b) Tolling the public notice period. Upon receipt by an incumbent 
LEC of a competing service provider's request for disclosure of 
confidential or proprietary information, the applicable public notice 
period will be tolled until the parties agree on the terms of a 
nondisclosure agreement. An incumbent LEC receiving such a request must 
amend its public notice as follows:
    (1) On the date it receives a request from a competing service 
provider for disclosure of confidential or proprietary information, to 
state that the notice period is tolled; and
    (2) On the date the nondisclosure agreement is finalized, to specify 
a new implementation date.

[61 FR 47352, Sept. 6, 1996]



Subpart E_Exemptions, Suspensions, and Modifications of Requirements of 

                         Section 251 of the Act



Sec. 51.401  State authority.

    A state commission shall determine whether a telephone company is 
entitled, pursuant to section 251(f) of the Act, to exemption from, or 
suspension or modification of, the requirements of section 251 of the 
Act. Such determinations shall be made on a case-by-case basis.



Sec. 51.403  Carriers eligible for suspension or modification under section 

251(f)(2) of the Act.

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



Sec. 51.405  Burden of proof.

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

[[Page 50]]



                      Subpart F_Pricing of Elements



Sec. 51.501  Scope.

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



Sec. 51.503  General pricing standard.

    (a) An incumbent LEC shall offer elements to requesting 
telecommunications carriers at rates, terms, and conditions that are 
just, reasonable, and nondiscriminatory.
    (b) An incumbent LEC's rates for each element it offers shall comply 
with the rate structure rules set forth in 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

[[Page 51]]

incurred in the past and that are recorded in the incumbent LEC's books 
of accounts;
    (2) Retail costs. Retail costs include the costs of marketing, 
billing, collection, and other costs associated with offering retail 
telecommunications services to subscribers who are not 
telecommunications carriers, described in Sec. 51.609;
    (3) Opportunity costs. Opportunity costs include the revenues that 
the incumbent LEC would have received for the sale of telecommunications 
services, in the absence of competition from telecommunications carriers 
that purchase elements; and
    (4) Revenues to subsidize other services. Revenues to subsidize 
other services include revenues associated with elements or 
telecommunications service offerings other than the element for which a 
rate is being established.
    (e) Cost study requirements. An incumbent LEC must prove to the 
state commission that the rates for each element it offers do not exceed 
the forward-looking economic cost per unit of providing the element, 
using a cost study that complies with the methodology set forth in this 
section and Sec. 51.511.
    (1) A state commission may set a rate outside the proxy ranges or 
above the proxy ceilings described in Sec. 51.513 only if that 
commission has given full and fair effect to the economic cost based 
pricing methodology described in this section and Sec. 51.511 in a 
state proceeding that meets the requirements of paragraph (e)(2) of this 
section.
    (2) Any state proceeding conducted pursuant to this section shall 
provide notice and an opportunity for comment to affected parties and 
shall result in the creation of a written factual record that is 
sufficient for purposes of review. The record of any state proceeding in 
which a state commission considers a cost study for purposes of 
establishing rates under this section shall include any such cost study.



Sec. 51.507  General rate structure standard.

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

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



Sec. 51.509  Rate structure standards for specific elements.

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

[[Page 52]]

    (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.
    (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.

[[Page 53]]

    (c) Proxies for specific elements--(1) Local loops. For each state 
listed below, the proxy-based monthly rate for unbundled local loops, on 
a statewide weighted average basis, shall be no greater than the figures 
listed in the table below. (The Commission has not established a default 
proxy ceiling for loop rates in Alaska.)

                                  Table
------------------------------------------------------------------------
                                                                  Proxy
                             State                               ceiling
------------------------------------------------------------------------
Alabama.......................................................    $17.25
Arizona.......................................................     12.85
Arkansas......................................................     21.18
California....................................................     11.10
Colorado......................................................     14.97
Connecticut...................................................     13.23
Delaware......................................................     13.24
District of Columbia..........................................     10.81
Florida.......................................................     13.68
Georgia.......................................................     16.09
Hawaii........................................................     15.27
Idaho.........................................................     20.16
Illinois......................................................     13.12
Indiana.......................................................     13.29
Iowa..........................................................     15.94
Kansas........................................................     19.85
Kentucky......................................................     16.70
Louisiana.....................................................     16.98
Maine.........................................................     18.69
Maryland......................................................     13.36
Massachusetts.................................................      9.83
Michigan......................................................     15.27
Minnesota.....................................................     14.81
Mississippi...................................................     21.97
Missouri......................................................     18.32
Montana.......................................................     25.18
Nebraska......................................................     18.05
Nevada........................................................     18.95
New Hampshire.................................................     16.00
New Jersey....................................................     12.47
New Mexico....................................................     18.66
New York......................................................     11.75
North Carolina................................................     16.71
North Dakota..................................................     25.36
Ohio..........................................................     15.73
Oklahoma......................................................     17.63
Oregon........................................................     15.44
Pennsylvania..................................................     12.30
Puerto Rico...................................................     12.47
Rhode Island..................................................     11.48
South Carolina................................................     17.07
South Dakota..................................................     25.33
Tennessee.....................................................     17.41
Texas.........................................................     15.49
Utah..........................................................     15.12
Vermont.......................................................     20.13
Virginia......................................................     14.13
Washington....................................................     13.37
West Virginia.................................................     19.25
Wisconsin.....................................................     15.94
Wyoming.......................................................     25.11
------------------------------------------------------------------------

    (2) Local switching. (i) The blended proxy-based rate for the usage-
sensitive component of the unbundled local switching element, including 
the switching matrix, the functionalities used to provide vertical 
features, and the trunk ports, shall be no greater than 0.4 cents 
($0.004) per minute, and no less than 0.2 cents ($0.002) per minute, 
except that, where a state commission has, before August 8, 1996, 
established a rate less than or equal to 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

[[Page 54]]

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 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--

[[Page 55]]

    (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 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

[[Page 56]]

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]



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

[[Page 57]]

to offer on a resale basis to the same limited group of customers that 
have purchased such a service in the past.



Sec. 51.617  Assessment of end user common line charge on resellers.

    (a) Notwithstanding the provision in Sec. 69.104(a) of this chapter 
that the end user common line charge be assessed upon end users, an 
incumbent LEC shall assess this charge, and the charge for changing the 
designated primary interexchange carrier, upon requesting carriers that 
purchase telephone exchange service for resale. The specific end user 
common line charge to be assessed will depend upon the identity of the 
end user served by the requesting carrier.
    (b) When an incumbent LEC provides telephone exchange service to a 
requesting carrier at wholesale rates for resale, the incumbent LEC 
shall continue to assess the interstate access charges provided in part 
69 of this chapter, other than the end user common line charge, upon 
interexchange carriers that use the incumbent LEC's facilities to 
provide interstate or international telecommunications services to the 
interexchange carriers' subscribers.



   Subpart H_Reciprocal Compensation for Transport and Termination of 

                       Telecommunications Traffic

    Editorial Note: Nomenclature changes to subpart H of part 51 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

[[Page 58]]

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 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

[[Page 59]]

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 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]

[[Page 60]]



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 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-

[[Page 61]]

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 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

[[Page 62]]

finding that the state commission has failed to act;
    (2) Such party shall ensure that the state commission and the other 
parties to the proceeding or matter for which preemption is sought are 
served with the petition required in paragraph (a)(1) of this section on 
the same date that the petitioning party serves the petition on the 
Commission; and
    (3) Within fifteen days from the date of service of the petition 
required in paragraph (a)(1) of this section, the applicable state 
commission and parties to the proceeding may file with the Commission a 
response to the petition.
    (b) The party seeking preemption must prove that the state has 
failed to act to carry out its responsibilities under section 252 of the 
Act.
    (c) The Commission, pursuant to section 252(e)(5) of the Act, may 
take notice upon its own motion that a state commission has failed to 
act. In such a case, the Commission shall issue a public notice that the 
Commission has taken notice of a state commission's failure to act. The 
applicable state commission and the parties to a proceeding or matter in 
which the Commission has taken notice of the state commission's failure 
to act may file, within fifteen days of the issuance of the public 
notice, comments on whether the Commission is required to assume the 
responsibility of the state commission under section 252 of the Act with 
respect to the proceeding or matter.
    (d) The Commission shall issue an order determining whether it is 
required to preempt the state commission's jurisdiction of a proceeding 
or matter within 90 days after being notified under paragraph (a) of 
this section or taking notice under paragraph (c) of this section of a 
state commission's failure to carry out its responsibilities under 
section 252 of the Act.



Sec. 51.805  The Commission's authority over proceedings and matters.

    (a) If the Commission assumes responsibility for a proceeding or 
matter pursuant to section 252(e)(5) of the Act, the Commission shall 
retain jurisdiction over such proceeding or matter. At a minimum, the 
Commission shall approve or reject any interconnection agreement adopted 
by negotiation, mediation or arbitration for which the Commission, 
pursuant to section 252(e)(5) of the Act, has assumed the state's 
commission's responsibilities.
    (b) Agreements reached pursuant to mediation or arbitration by the 
Commission pursuant to section 252(e)(5) of the Act are not required to 
be submitted to the state commission for approval or rejection.



Sec. 51.807  Arbitration and mediation of agreements by the Commission 

pursuant to section 252(e)(5) of the Act.

    (a) The rules established in this section shall apply only to 
instances in which the Commission assumes jurisdiction under section 
252(e)(5) of the Act.
    (b) When the Commission assumes responsibility for a proceeding or 
matter pursuant to section 252(e)(5) of the Act, it shall not be bound 
by state laws and standards that would have applied to the state 
commission in such proceeding or matter.
    (c) In resolving, by arbitration under section 252(b) of the Act, 
any open issues and in imposing conditions upon the parties to the 
agreement, the Commission shall:
    (1) Ensure that such resolution and conditions meet the requirements 
of section 251 of the Act, including the rules prescribed by the 
Commission pursuant to that section;
    (2) Establish any rates for interconnection, services, or network 
elements according to section 252(d) of the Act, including the rules 
prescribed by the Commission pursuant to that section; and
    (3) Provide a schedule for implementation of the terms and 
conditions by the parties to the agreement.
    (d) An arbitrator, acting pursuant to the Commission's authority 
under section 252(e)(5) of the Act, shall use final offer arbitration, 
except as otherwise provided in this section:
    (1) At the discretion of the arbitrator, final offer arbitration may 
take the form of either entire package final offer arbitration or issue-
by-issue final offer arbitration.
    (2) Negotiations among the parties may continue, with or without the 
assistance of the arbitrator, after final

[[Page 63]]

arbitration offers are submitted. Parties may submit subsequent final 
offers following such negotiations.
    (3) To provide an opportunity for final post-offer negotiations, the 
arbitrator will not issue a decision for at least fifteen days after 
submission to the arbitrator of the final offers by the parties.
    (e) Final offers submitted by the parties to the arbitrator shall be 
consistent with section 251 of the Act, including the rules prescribed 
by the Commission pursuant to that section.
    (f) Each final offer shall:
    (1) Meet the requirements of section 251, including the rules 
prescribed by the Commission pursuant to that section;
    (2) Establish rates for interconnection, services, or access to 
unbundled network elements according to section 252(d) of the Act, 
including the rules prescribed by the Commission pursuant to that 
section; and
    (3) Provide a schedule for implementation of the terms and 
conditions by the parties to the agreement. If a final offer submitted 
by one or more parties fails to comply with the requirements of this 
section or if the arbitrator determines in unique circumstances that 
another result would better implement the Communications Act, the 
arbitrator has discretion to take steps designed to result in an 
arbitrated agreement that satisfies the requirements of section 252(c) 
of the Act, including requiring parties to submit new final offers 
within a time frame specified by the arbitrator, or adopting a result 
not submitted by any party that is consistent with the requirements of 
section 252(c) of the Act, and the rules prescribed by the Commission 
pursuant to that section.
    (g) Participation in the arbitration proceeding will be limited to 
the requesting telecommunications carrier and the incumbent LEC, except 
that the Commission will consider requests by third parties to file 
written pleadings.
    (h) Absent mutual consent of the parties to change any terms and 
conditions adopted by the arbitrator, the decision of the arbitrator 
shall be binding on the parties.

[61 FR 45619, Aug. 29, 1996, as amended at 66 FR 8520, Feb. 1, 2001]



Sec. 51.809  Availability of agreements to other telecommunications carriers 

under section 252(i) of the Act.

    (a) An incumbent LEC shall make available without unreasonable delay 
to any requesting telecommunications carrier any agreement in its 
entirety to which the incumbent LEC is a party that is approved by a 
state commission pursuant to section 252 of the Act, upon the same 
rates, terms, and conditions as those provided in the agreement. An 
incumbent LEC may not limit the availability of any agreement only to 
those requesting carriers serving a comparable class of subscribers or 
providing the same service (i.e., local, access, or interexchange) as 
the original party to the agreement.
    (b) The obligations of paragraph (a) of this section shall not apply 
where the incumbent LEC proves to the state commission that:
    (1) The costs of providing a particular agreement to the requesting 
telecommunications carrier are greater than the costs of providing it to 
the telecommunications carrier that originally negotiated the agreement, 
or
    (2) The provision of a particular agreement to the requesting 
carrier is not technically feasible.
    (c) Individual agreements shall remain available for use by 
telecommunications carriers pursuant to this section for a reasonable 
period of time after the approved agreement is available for public 
inspection under section 252(h) of the Act.

[69 FR 43771, July 22, 2004]



              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

[[Page 64]]

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:
    (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:

[[Page 65]]

    (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.
    (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.

[[Page 66]]

    (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 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:

[[Page 67]]

    (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. 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

[[Page 68]]

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 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 paragraphs (a)(6) and (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) Notwithstanding the requirements of paragraph (a)(1) of this 
section, if a Rate-of-Return Carrier enters or exits the National 
Exchange Carrier Association (Association), as defined in Sec. 69.2(d) 
of this chapter, traffic-sensitive tariff pursuant to the provisions of 
Sec. 69.3(e)(6) of this chapter, the Association shall adjust its 
switched access rate caps referenced in paragraph (a)(1) of this 
section.
    (i) For each entering Rate-of-Return Carrier, the Association shall:
    (A) Determine each entering Rate-of-Return Carrier's interstate 
switched access revenues for the preceding calendar year;
    (B) Determine the revenues that would have been realized by the 
entering Rate-of-Return Carrier in the preceding calendar year if it had 
used the Association's switched access rates (employing the rates for 
the appropriate bands) as of December 31 of the preceding year and the 
entering Rate-of-Return Carrier's switched access demand used to 
determine switched access revenues under paragraph (a)(4)(i)(A) of this 
section; and
    (C) Subtract the sum of the revenues determined pursuant to 
paragraph (a)(4)(i)(B) of this section from the sum of the revenues 
determined pursuant to paragraph (a)(4)(i)(A) of this section.

[[Page 69]]

    (ii) The Association shall determine the amount by which each 
exiting Rate-of-Return Carrier is a net contributor or net recipient to 
or from the switched access segment of the Association pool as follows:
    (A) The Association shall calculate the difference between each 
exiting Rate-of-Return Carrier's 2011-2012 tariff year projected 
interstate switched access revenues excluding Local Switching Support 
and the Rate-of-Return Carrier's projected switched access pool 
settlements excluding Local Switching Support for the same period with a 
net contribution amount being treated as a positive amount and a net 
recipient amount being treated as a negative amount. The Association 
shall divide the calculated difference by the Rate-of-Return Carrier's 
2011-2012 tariff year projected interstate switched access revenues 
excluding Local Switching Support to produce a percent net contribution 
or net receipt factor.
    (B) The Association shall multiply the factor calculated in 
paragraph (a)(4)(ii)(A) of this section by the Rate-of-Return Carrier's 
switched access revenues for the preceding calendar year to yield the 
amount of the Rate-of-Return Carrier's net contribution or net receipts 
for the calendar year.
    (iii) To determine the Association's adjusted switched access rate 
caps, the Association shall:
    (A) Add the amounts calculated under paragraphs (a)(4)(i) and 
(a)(4)(ii) of this section;
    (B) Divide the amount determined in paragraph (a)(4)(iii)(A) of this 
section by the preceding year's switched access revenues of the Rate-of-
Return Carriers that will participate in the Association traffic-
sensitive tariff for the next annual tariff period;
    (C) The Association shall proportionately adjust its June 30 
switched access rate caps by the percentage amount determined in 
paragraph (a)(4)(iii)(B) of this section.
    (iv) The interstate switched access rate caps determined pursuant to 
paragraph (a)(4)(iii)(C) of this section shall be the new capped 
interstate switched access rates for purposes of Sec. 51.909(a). The 
Association shall provide support in its annual access tariff filing to 
justify the revised interstate switched access rate caps, the Access 
Recovery Charges that will be assessed, and the amount of Connect 
America Fund ICC support each carrier will be eligible to receive.
    (5) A Rate-of-Return Carrier exiting the Association traffic-
sensitive tariff pursuant to Sec. 69.3(e)(6) of this chapter must 
establish new switched access rate caps as follows:
    (i) The Rate-of-Return Carrier shall multiply the factor determined 
in paragraph (a)(4)(ii)(A) of this section by negative one and then 
proportionately adjust the Association's capped switched access rates as 
of the date preceding the effective date of the exiting Rate-of-Return 
Carrier's next annual tariff filing by this percentage. A Rate-of-Return 
Carrier that was a net contributor to the pool will have rate caps that 
are lower than the Association's switched access rate caps, while a net 
recipient will have switched access rate caps that are higher than the 
Association's switched access rate caps;
    (ii) The interstate switched access rate caps determined pursuant to 
paragraph (a)(5)(i) of this section shall be the new capped interstate 
switched access rates of the exiting Rate-of-Return Carrier for purposes 
of Sec. 51.909(a). An exiting Rate-of-Return Carrier shall provide 
support in its annual access tariff filing to justify the revised 
interstate switched access rate caps, the Access Recovery Charges that 
will be assessed, and the amount of Connect America Fund ICC support the 
carrier will be eligible to receive.
    (6) If the Association revises its interstate switched access rate 
caps pursuant to paragraph (a)(4) of this section, each Rate-of-Return 
Carrier participating in the upcoming annual Association traffic-
sensitive tariff shall:
    (i) Revise any of its intrastate switched access rates that would 
have reached parity with its interstate switched access rates in 2013 to 
parity with the revised interstate switched access rate levels;
    (ii) The Association shall provide Rate-of-Return Carriers that are 
participating in the Association traffic-sensitive pool with notice of 
any revisions the Association proposes under

[[Page 70]]

paragraph (a)(4) of this section no later than May 1.
    (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, 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, Terminating Tandem-Switched Transport Access Service, 
and Originating and Terminating Dedicated 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

[[Page 71]]

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.
    (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

[[Page 72]]

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 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; 
78 FR 26267, May 6, 2013]



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

[[Page 73]]

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 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

[[Page 74]]

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 48452, 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 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.

[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

[[Page 75]]

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.
    (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

[[Page 76]]

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 (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 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 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

[[Page 77]]

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;
    (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

[[Page 78]]

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 
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 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:

[[Page 79]]

    (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 
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 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.

[[Page 80]]

    (F) An amount equal to True-up 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 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 
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

[[Page 81]]

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;
    (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 
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 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,

[[Page 82]]

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 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.

[[Page 83]]

    (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 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 annual access tariff filing 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; 
78 FR 26268, May 6, 2013]



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.

[[Page 84]]

    (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 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 (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 
(projected demand minus actual realized net demand for that service) 
times the default transition rate for that service specified by Sec. 
20.11(b) of this chapter or Sec. 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

[[Page 85]]

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.
    (D) An amount equal to True-up 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

[[Page 86]]

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.
    (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

[[Page 87]]

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 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 annual access tariff filing 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; 78 
FR 26268, May 6, 2013]



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.

[[Page 88]]

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.
    (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

[[Page 89]]

with respect to intrastate operations of carriers.
    (f) Telecommunications. ``Telecommunications'' means the 
transmission, between or among points specified by the user, of 
information of the user's choosing, without change in the form or 
content of the information as sent and received.
    (g) Telecommunications carrier. A ``telecommunications carrier'' is 
any provider of telecommunications services, except that such term does 
not include aggregators of telecommunications services (as defined in 47 
U.S.C. 226(a)(2)).
    (h) Telecommunications service. The term ``telecommunications 
service'' refers to the offering of telecommunications for a fee 
directly to the public, or to such classes of users as to be effectively 
available directly to the public, regardless of the facilities used.
    (i) Service provider. The term ``service provider'' refers to a 
telecommunications carrier or other entity that receives numbering 
resources from the NANPA, a Pooling Administrator or a 
telecommunications carrier for the purpose of providing or establishing 
telecommunications service.

[61 FR 47353, Sept. 6, 1996, as amended at 65 FR 37707, June 16, 2000; 
71 FR 65750, Nov. 9, 2006]



                        Subpart B_Administration

    Source: 61 FR 47353, Sept. 6, 1996, unless otherwise noted.



Sec. 52.7  Definitions.

    As used in this subpart:
    (a) Area code or numbering plan area (NPA). The term ``area code or 
numbering plan area'' refers to the first three digits (NXX) of a ten-
digit telephone number in the form NXX-NXX-XXXX, where N represents any 
one of the numbers 2 through 9 and X represents any one of the numbers 0 
through 9.
    (b) Area code relief. The term ``area code relief'' refers to the 
process by which central office codes are made available when there are 
few or no unassigned central office codes remaining in an existing area 
code and a new area code is introduced. Area code relief includes 
planning for area code ``jeopardy,'' which is a situation where central 
office codes may become exhausted before an area code relief plan can be 
implemented.
    (c) Central office (CO) code. The term ``central office code'' 
refers to the second three digits (NXX) of a ten-digit telephone number 
in the form NXX-NXX-XXXX, where N represents any one of the numbers 2 
through 9 and X represents any one of the numbers 0 through 9.
    (d) Central office (CO) code administrator. The term ``central 
office code administrator'' refers to the entity or entities responsible 
for managing central office codes in each area code.
    (e) North American Numbering Plan Administrator (NANPA). The term 
``North American Numbering Plan Administrator'' refers to the entity or 
entities responsible for managing the NANP.
    (f) Billing and Collection Agent. The term ``Billing & Collection 
Agent'' (``B&C Agent'') refers to the entity responsible for the 
collection of funds to support numbering administration for 
telecommunications services from the United States telecommunications 
industry and NANP member countries.
    (g) Pooling Administrator (PA). The term ``Pooling Administrator'' 
refers to the entity or entities responsible for administering a 
thousands-block number pool.
    (h) Contamination. Contamination occurs when at least one telephone 
number within a block of telephone numbers is not available for 
assignment to end users or customers. For purposes of this provision, a 
telephone number is ``not available for assignment'' if it is classified 
as administrative, aging, assigned, intermediate, or reserved as defined 
in Sec. 52.15(f)(1).
    (i) Donation. The term ``donation'' refers to the process by which 
carriers are required to contribute telephone numbers to a thousands-
block number pool.
    (j) Inventory. The term ``inventory'' refers to all telephone 
numbers distributed, assigned or allocated:
    (1) To a service provider; or

[[Page 90]]

    (2) To a pooling administrator for the purpose of establishing or 
maintaining a thousands-block number pool.

[61 FR 47353, Sept. 6, 1996, as amended at 62 FR 55180, Oct. 23, 1997; 
65 FR 37707, June 16, 2000]



Sec. 52.9  General requirements.

    (a) To ensure that telecommunications numbers are made available on 
an equitable basis, the administration of telecommunications numbers 
shall, in addition to the specific requirements set forth in this 
subpart:
    (1) Facilitate entry into the telecommunications marketplace by 
making telecommunications numbering resources available on an efficient, 
timely basis to telecommunications carriers;
    (2) Not unduly favor or disfavor any particular telecommunications 
industry segment or group of telecommunications consumers; and
    (3) Not unduly favor one telecommunications technology over another.
    (b) If the Commission delegates any telecommunications numbering 
administration functions to any State or other entity pursuant to 47 
U.S.C. 251(e)(1), such State or entity shall perform these functions in 
a manner consistent with this part.



Sec. 52.11  North American Numbering Council.

    The duties of the North American Numbering Council (NANC), may 
include, but are not limited to:
    (a) Advising the Commission on policy matters relating to the 
administration of the NANP in the United States;
    (b) Making recommendations, reached through consensus, that foster 
efficient and impartial number administration;
    (c) Initially resolving disputes, through consensus, that foster 
efficient and impartial number administration in the United States by 
adopting and utilizing dispute resolution procedures that provide 
disputants, regulators, and the public notice of the matters at issue, a 
reasonable opportunity to make oral and written presentations, a 
reasoned recommended solution, and a written report summarizing the 
recommendation and the reasons therefore;
    (d) [Reserved]
    (e) Recommending to the Commission an appropriate mechanism for 
recovering the costs of NANP administration in the United States, 
consistent with Sec. 52.17;
    (f) Carrying out the duties described in Sec. 52.25; and
    (g) Carrying out this part as directed by the Commission;
    (h) Monitoring the performance of the NANPA and the B&C Agent on at 
least an annual basis; and
    (i) Implementing, at the direction of the Commission, any action 
necessary to correct identified problems with the performance of the 
NANPA and the B&C Agent, as deemed necessary.

[61 FR 47353, Sept. 6, 1996, as amended at 62 FR 55180, Oct. 23, 1997; 
71 FR 65750, Nov. 9, 2006]



Sec. 52.12  North American Numbering Plan Administrator and B&C Agent.

    The North American Numbering Plan Administrator (``NANPA'') and the 
associated ``B&C Agent'' will conduct their respective operations in 
accordance with this section. The NANPA and the B&C Agent will conduct 
their respective operations with oversight from the Federal 
Communications Commission (the ``Commission'') and with recommendations 
from the North American Numbering Council (``NANC'').
    (a)(1) Neutrality. The NANPA and the B&C Agent shall be non-
governmental entities that are impartial and not aligned with any 
particular telecommunication industry segment. Accordingly, while 
conducting their respective operations under this section, the NANPA and 
B&C Agent shall ensure that they comply with the following neutrality 
criteria:
    (i) The NANPA and B&C Agent may not be an affiliate of any 
telecommunications service provider(s) as defined in the 
Telecommunications Act of 1996, or an affiliate of any interconnected 
VoIP provider as that term is defined in Sec. 52.21(h). ``Affiliate'' 
is a person who controls, is controlled by, or is under the direct or 
indirect common control with another person. A person shall be

[[Page 91]]

deemed to control another if such person possesses, directly or 
indirectly--
    (A) An equity interest by stock, partnership (general or limited) 
interest, joint venture participation, or member interest in the other 
person ten (10%) percent or more of the total outstanding equity 
interests in the other person, or
    (B) The power to vote ten (10%) percent or more of the securities 
(by stock, partnership (general or limited) interest, joint venture 
participation, or member interest) having ordinary voting power for the 
election of directors, general partner, or management of such other 
person, or
    (C) The power to direct or cause the direction of the management and 
policies of such other person, whether through the ownership of or right 
to vote voting rights attributable to the stock, partnership (general or 
limited) interest, joint venture participation, or member interest) of 
such other person, by contract (including but not limited to stockholder 
agreement, partnership (general or limited) agreement, joint venture 
agreement, or operating agreement), or otherwise;
    (ii) The NANPA and B&C Agent, and any affiliate thereof, may not 
issue a majority of its debt to, nor may it derive a majority of its 
revenues from, any telecommunications service provider. ``Majority'' 
shall mean greater than 50 percent, and ``debt'' shall mean stocks, 
bonds, securities, notes, loans or any other instrument of indebtedness; 
and
    (iii) Notwithstanding the neutrality criteria set forth in 
paragraphs (a)(1) (i) and (ii) of this section, the NANPA and B&C Agent 
may be determined to be or not to be subject to undue influence by 
parties with a vested interest in the outcome of numbering 
administration and activities. NANC may conduct an evaluation to 
determine whether the NANPA and B&C Agent meet the undue influence 
criterion.
    (2) Any subcontractor that performs--
    (i) NANP administration and central office code administration, or
    (ii) Billing and Collection functions, for the NANPA or for the B&C 
Agent must also meet the neutrality criteria described in paragraph 
(a)(1).
    (b) Term of administration. The NANPA shall provide numbering 
administration, including central office code administration, for the 
United States portion of the North American Numbering Plan (``NANP'') 
for an initial period of five (5) years. At any time prior to the 
termination of the initial or subsequent term of administration, such 
term may be renewed for up to five (5) years with the approval of the 
Commission and the agreement of the NANPA. The B&C Agent shall provide 
billing and collection functions for an initial period of five (5) 
years. At any time prior to the termination of the initial or subsequent 
term of administration, such term may be renewed for up to five (5) 
years with the approval of the Commission and the agreement of the B&C 
Agent.
    (c) Changes to regulations, rules, guidelines or directives. In the 
event that regulatory authorities or industry groups (including, for 
example, the Industry Numbering Committee--INC, or its successor) issue 
rules, requirements, guidelines or policy directives which may affect 
the functions performed by the NANPA and the B&C Agent, the NANPA and 
the B&C Agent shall, within 10 business days from the date of official 
notice of such rules, requirements, guidelines or policy directives, 
assess the impact on its operations and advise the Commission of any 
changes required. NANPA and the B&C Agent shall provide written 
explanation why such changes are required. To the extent the Commission 
deems such changes are necessary, the Commission will recommend to the 
NANP member countries appropriate cost recovery adjustments, if 
necessary.
    (d) Performance review process. NANPA and the B&C Agent shall 
develop and implement an internal, documented performance monitoring 
mechanism and shall provide such performance review on request of the 
Commission on at least an annual basis. The annual assessment process 
will not preclude telecommunications industry participants from 
identifying performance problems to the NANPA, the B&C Agent and the 
NANC as they occur, and from seeking expeditious resolution. If 
performance problems are identified by

[[Page 92]]

a telecommunications industry participant, the NANC, B&C Agent or NANPA 
shall investigate and report within 10 business days of notice to the 
participant of corrective action, if any, taken or to be taken. The 
NANPA, B&C Agent or NANC (as appropriate) shall be permitted reasonable 
time to take corrective action, including the necessity of obtaining the 
required consent of the Commission.
    (e) Termination. If the Commission determines at any time that the 
NANPA or the B&C Agent fails to comply with the neutrality criteria set 
forth in paragraph (a) of this section or substantially or materially 
defaults in the performance of its obligations, the Commission shall 
advise immediately the NANPA or the B&C Agent of said failure or 
default, request immediate corrective action, and permit the NANPA or 
B&C Agent reasonable time to correct such failure or default. If the 
NANPA or B&C Agent is unwilling or unable to take corrective action, the 
Commission may, in a manner consistent with the requirements of the 
Administrative Procedure Act and the Communications Act of 1934, as 
amended, take any action that it deems appropriate, including 
termination of the NANPA's or B&C Agent's term of administration.
    (f) Required and optional enterprise services. Enterprise Services, 
which are services beyond those described in Sec. 52.13 that may be 
provided by the new NANPA for specified fees, may be offered with prior 
approval of the Commission.
    (1) Required Enterprise Services. At the request of a code holder, 
the NANPA shall, in accordance with industry standards and for 
reasonable fees, enter certain routing and rating information, into the 
industry-approved database(s) for dissemination of such information. 
This task shall include reviewing the information and assisting in its 
preparation.
    (2) Optional Enterprise Services. The NANPA may, subject to prior 
approval and for reasonable fees, offer ``Optional Enterprise Services'' 
which are any services not described elsewhere in this section.
    (3) Annual report. NANPA shall identify and record all direct costs 
associated with providing Enterprise Services separately from the costs 
associated with the non-enterprise NANPA functions. The NANPA shall 
submit an annual report to the NANC summarizing the revenues and costs 
for providing each Enterprise Service. NANPA shall be audited by an 
independent auditor after the first year of operations and every two 
years thereafter, and submit the report to the Commission for 
appropriate review and action.

[63 FR 55180, Oct. 23, 1997, as amended at 73 FR 9481, Feb. 21, 2008]



Sec. 52.13  North American Numbering Plan Administrator.

    (a) The North American Numbering Plan Administrator (NANPA) shall be 
an independent and impartial non-government entity.
    (b) The NANPA shall administer the numbering resources identified in 
paragraph (d) of this section. It shall assign and administer NANP 
resources in an efficient, effective, fair, unbiased, and non-
discriminatory manner consistent with industry-developed guidelines and 
Commission regulations. It shall support the Commission's efforts to 
accommodate current and future numbering needs. It shall perform 
additional functions, including but not limited to:
    (1) Ensuring the efficient and effective administration and 
assignment of numbering resources by performing day-to-day number 
resource assignment and administrative activities;
    (2) Planning for the long-term need for NANP resources to ensure the 
continued viability of the NANP by implementing a plan for number 
resource administration that uses effective forecasting and management 
skills in order to make the industry aware of the availability of 
numbering resources and to meet the current and future needs of the 
industry;
    (3) Complying with guidelines of the North American Industry 
Numbering Committee (INC) or its successor, related industry 
documentation, Commission regulations and orders, and the guidelines of 
other appropriate policy-making authorities;
    (4) Providing management supervision for all of the services it 
provides, including responsibility for achieving

[[Page 93]]

performance measures established by the NANC and the INC in industry 
guidelines;
    (5) Participating in the NANC annual performance review as described 
in Sec. Sec. 52.11 and 52.12;
    (6) Establishing and maintaining relationships with current 
governmental and regulatory bodies, and their successors, including the 
United States Federal Communications Commission, Industry Canada, the 
Canadian Radio-television and Telecommunications Commission, and other 
United States, Canadian, and Caribbean numbering authorities and 
regulatory agencies, and addressing policy directives from these bodies;
    (7) Cooperating with and actively participating in numbering 
standards bodies and industry fora, such as INC and, upon request, the 
Canadian Steering Committee on Numbering (CSCN);
    (8) Representing the NANP to national and international numbering 
bodies;
    (9) Developing and maintaining communications channels with other 
countries who also participate in the NANP to ensure that numbering 
needs of all countries served by the NANP are met;
    (10) Attending United States Study Group A meetings and maintaining 
a working knowledge of Study Group 2 International Telecommunications 
Union activities on behalf of the United States telecommunications 
industry;
    (11) Reviewing requests for all numbering resources to implement new 
applications and services and making assignments in accordance with 
industry-developed resource planning and assignment guidelines;
    (12) Referring requests for particular numbering resources to the 
appropriate industry body where guidelines do not exist for those 
resources;
    (13) Participating in industry activities to determine whether, when 
new telecommunications services requiring numbers are proposed, NANP 
numbers are appropriate and what level of resource is required (e.g., 
line numbers, central office codes, NPA codes);
    (14) Maintaining necessary administrative staff to handle the legal, 
financial, technical, staffing, industry, and regulatory issues relevant 
to the management of all numbering resources, as well as maintaining the 
necessary equipment, facilities, and proper billing arrangements 
associated with day-to-day management of all numbering resources;
    (15) Managing the NANP in accordance with published guidelines 
adopted in conjunction with the industry and the appropriate NANP member 
countries' governing agencies, and referring issues to the appropriate 
industry body for resolution when they have not been addressed by the 
industry;
    (16) Responding to requests from the industry and from regulators 
for information about the NANP and its administration, as the primary 
repository for numbering information in the industry;
    (17) Providing upon request information regarding how to obtain 
current documents related to NANP administration;
    (18) Providing assistance to users of numbering resources and 
suggesting numbering administration options, when possible, that will 
optimize number resource utilization;
    (19) Coordinating its numbering resource activities with the 
Canadian Number Administrator and other NANP member countries' 
administrators to ensure efficient and effective management of NANP 
numbering resources; and
    (20) Determining the final allocation methodology for sharing costs 
between NANP countries.
    (c) In performing the functions outlined in paragraph (b) of this 
section, the NANPA shall:
    (1) Ensure that the interests of all NANP member countries are 
considered;
    (2) Assess fairly requests for assignments of NANP numbering 
resources and ensure the assignment of numbering resources to 
appropriate service providers;
    (3) Develop, operate and maintain the computer hardware, software 
(database) and mechanized systems required to perform the NANPA and 
central office (CO) Code Administration functions;
    (4) Manage projects such as Numbering Plan Area (NPA) relief (area

[[Page 94]]

code relief) planning, Numbering Resource Utilization and Forecast 
(NRUF) data collection, and NPA and NANP exhaust projection;
    (5) Facilitate NPA relief planning meetings;
    (6) Participate in appropriate industry activities;
    (7) Manage proprietary data and competitively sensitive information 
and maintain the confidentiality thereof;
    (8) Act as an information resource for the industry concerning all 
aspects of numbering (i.e., knowledge and experience in numbering 
resource issues, International Telecommunications Union (ITU) 
Recommendation E.164, the North American Numbering Plan (NANP), NANP 
Administration, INC, NANP area country regulatory issues affecting 
numbering, number resource assignment guidelines, central office code 
administration, relief planning, international numbering issues, etc.); 
and
    (9) Ensure that any action taken with respect to number 
administration is consistent with this part.
    (d) The NANPA and, to the extent applicable, the B&C Agent, shall 
administer numbering resources in an efficient and non-discriminatory 
manner, in accordance with Commission rules and regulations and the 
guidelines developed by the INC and other industry groups pertaining to 
administration and assignment of numbering resources, including, but not 
limited to:
    (1) Numbering Plan Area (NPA) codes,
    (2) Central Office codes for the 809 area,
    (3) International Inbound NPA 456 NXX codes,
    (4) (NPA) 500 NXX codes,
    (5) (NPA) 900 NXX codes,
    (6) N11 Service codes,
    (7) 855-XXXX line numbers,
    (8) 555-XXXX line numbers,
    (9) Carrier Identification Codes,
    (10) Vertical Service Codes,
    (11) ANI Information Integer (II) Digit Pairs,
    (12) Non Dialable Toll Points, and
    (13) New numbering resources as may be defined.
    (e) Relationships with other NANP member countries' administrators 
and authorities. The NANPA shall address policy directives from other 
NANP member countries' governmental and regulatory authorities and 
coordinate its activities with other NANP member countries' 
administrators, if any, to ensure efficient and effective management of 
NANP resources.
    (f) Transition plan. The NANPA shall implement a transition plan, 
subject to Commission approval, leading to its assumption of NANPA 
functions within 90 days of the effective date of a Commission order 
announcing the selection of the NANPA.
    (g) Transfer of intellectual property. The new NANPA must make 
available any and all intellectual property and associated hardware 
resulting from its activities as numbering administrator including, but 
not limited to, systems and the data contained therein, software, 
interface specifications and supporting documentation and make such 
property available to whomever NANC directs free of charge. The new 
NANPA must specify any intellectual property it proposes to exclude from 
the provisions of this paragraph based on the existence of such property 
prior to its selection as NANPA.

[61 FR 47353, Sept. 6, 1996, as amended at 62 FR 55181, Oct. 23, 1997; 
71 FR 65750, Nov. 9, 2006]



Sec. 52.15  Central office code administration.

    (a) Central Office Code Administration shall be performed by the 
NANPA, or another entity or entities, as designated by the Commission.
    (b) Duties of the entity or entities performing central office code 
administration may include, but are not limited to:
    (1) Processing central office code assignment applications and 
assigning such codes in a manner that is consistent with this part;
    (2) Accessing and maintaining central office code assignment 
databases;
    (3) Conducting the Numbering Resource Utilization and Forecast 
(NRUF) data collection;
    (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

[[Page 95]]

    (5) Planning for and initiating area code relief, consistent with 
Sec. 52.19.
    (c) [Reserved]
    (d) Central Office (CO) Code Administration functional requirements. 
The NANPA shall manage the United States CO code numbering resource, 
including CO code request processing, NPA code relief and jeopardy 
planning, and industry notification functions. The NANPA shall perform 
its CO Code administration functions in accordance with the published 
industry numbering resource administration guidelines and Commission 
orders and regulations of 47 CFR chapter I.
    (e) [Reserved]
    (f) Mandatory reporting requirements--(1) Number use categories. 
Numbering resources must be classified in one of the following 
categories:
    (i) Administrative numbers are numbers used by telecommunications 
carriers to perform internal administrative or operational functions 
necessary to maintain reasonable quality of service standards.
    (ii) Aging numbers are disconnected numbers that are not available 
for assignment to another end user or customer for a specified period of 
time. Numbers previously assigned to residential customers may be aged 
for no more than 90 days. Numbers previously assigned to business 
customers may be aged for no more than 365 days.
    (iii) Assigned numbers are numbers working in the Public Switched 
Telephone Network under an agreement such as a contract or tariff at the 
request of specific end users or customers for their use, or numbers not 
yet working but having a customer service order pending. Numbers that 
are not yet working and have a service order pending for more than five 
days shall not be classified as assigned numbers.
    (iv) Available numbers are numbers that are available for assignment 
to subscriber access lines, or their equivalents, within a switching 
entity or point of interconnection and are not classified as assigned, 
intermediate, administrative, aging, or reserved.
    (v) Intermediate numbers are numbers that are made available for use 
by another telecommunications carrier or non-carrier entity for the 
purpose of providing telecommunications service to an end user or 
customer. Numbers ported for the purpose of transferring an established 
customer's service to another service provider shall not be classified 
as intermediate numbers.
    (vi) Reserved numbers are numbers that are held by service providers 
at the request of specific end users or customers for their future use. 
Numbers held for specific end users or customers for more than 180 days 
shall not be classified as reserved numbers.
    (2) Reporting carrier. The term ``reporting carrier'' refers to a 
telecommunications carrier that receives numbering resources from the 
NANPA, a Pooling Administrator or another telecommunications carrier.
    (3) Data collection procedures. (i) Reporting carriers shall report 
utilization and forecast data to the NANPA.
    (ii) Reporting shall be by separate legal entity and must include 
company name, company headquarters address, Operating Company Number 
(OCN), parent company OCN, and the primary type of business in which the 
reporting carrier is engaged. The term ``parent company'' refers to the 
highest related legal entity located within the state for which the 
reporting carrier is reporting data.
    (iii) All data shall be filed electronically in a format approved by 
the Common Carrier Bureau.
    (4) Forecast data reporting. (i) Reporting carriers shall submit to 
the NANPA a five-year forecast of their yearly numbering resource 
requirements.
    (ii) In areas where thousands-block number pooling has been 
implemented:
    (A) Reporting carriers that are required to participate in 
thousands-block number pooling shall report forecast data at the 
thousands-block (NXX-X) level per rate center;
    (B) Reporting carriers that are not required to participate in 
thousands-block number pooling shall report forecast data at the central 
office code (NXX) level per rate center.
    (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.

[[Page 96]]

    (iv) Reporting carriers shall identify and report separately initial 
numbering resources and growth numbering resources.
    (5) Utilization data reporting. (i) Reporting carriers shall submit 
to the NANPA a utilization report of their current inventory of 
numbering resources. The report shall classify numbering resources in 
the following number use categories: assigned, intermediate, reserved, 
aging, and administrative.
    (ii) Rural telephone companies, as defined in the Communications Act 
of 1934, as amended, 47 U.S.C. 153(37), that provide telecommunications 
service in areas where local number portability has not been implemented 
shall report utilization data at the central office code (NXX) level per 
rate center in those areas.
    (iii) All other reporting carriers shall report utilization data at 
the thousands-block (NXX-X) level per rate center.
    (6) Reporting frequency. (i) Reporting carriers shall file forecast 
and utilization reports semi-annually on or before February 1 for the 
preceding reporting period ending on December 31, and on or before 
August 1 for the preceding reporting period ending on June 30. Mandatory 
reporting shall commence August 1, 2000.
    (ii) State commissions may reduce the reporting frequency for NPAs 
in their states to annual. Reporting carriers operating in such NPAs 
shall file forecast and utilization reports annually on or before August 
1 for the preceding reporting period ending on June 30, commencing 
August 1, 2000.
    (iii) A state commission seeking to reduce the reporting frequency 
pursuant to paragraph (f) (6)(ii) of this section shall notify the 
Wireline Competition Bureau and the NANPA in writing prior to reducing 
the reporting frequency.
    (7) Access to data and confidentiality--States shall have access to 
data reported to the NANPA provided that they have appropriate 
protections in place to prevent public disclosure of disaggregated, 
carrier-specific data.
    (g) Applications for numbering resources--(1) General requirements. 
All applications for numbering resources must include the company name, 
company headquarters address, OCN, parent company's OCN(s), and the 
primary type of business in which the numbering resources will be used.
    (2) Initial numbering resources. Applications for initial numbering 
resources shall include evidence that:
    (i) The applicant is authorized to provide service in the area for 
which the numbering resources are being requested; and
    (ii) The applicant is or will be capable of providing service within 
sixty (60) days of the numbering resources activation date.
    (3) Growth numbering resources. (i) Applications for growth 
numbering resources shall include:
    (A) A Months-to-Exhaust Worksheet that provides utilization by rate 
center for the preceding six months and projected monthly utilization 
for the next twelve (12) months; and
    (B) The applicant's current numbering resource utilization level for 
the rate center in which it is seeking growth numbering resources.
    (ii) The numbering resource utilization level shall be calculated by 
dividing all assigned numbers by the total numbering resources in the 
applicant's inventory and multiplying the result by 100. Numbering 
resources activated in the Local Exchange Routing Guide (LERG) within 
the preceding 90 days of reporting utilization levels may be excluded 
from the utilization calculation.
    (iii) All service providers shall maintain no more than a six-month 
inventory of telephone numbers in each rate center or service area in 
which it provides telecommunications service.
    (iv) The NANPA shall withhold numbering resources from any U.S. 
carrier that fails to comply with the reporting and numbering resource 
application requirements established in this part. The NANPA shall not 
issue numbering resources to a carrier without an OCN. The NANPA must 
notify the carrier in writing of its decision to withhold numbering 
resources within ten (10) 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

[[Page 97]]

withhold numbering resources from the carrier based on its determination 
of compliance with the reporting and numbering resource application 
requirements herein.
    (4) Non-compliance. The NANPA shall withhold numbering resources 
from any U.S. carrier that fails to comply with the reporting and 
numbering resource application requirements established in this part. 
The NANPA shall not issue numbering resources to a carrier without an 
Operating Company Number (OCN). The NANPA must notify the carrier in 
writing of its decision to withhold numbering resources within ten (10) 
days of receiving a request for numbering resources. The carrier may 
challenge the NANPA's decision to the appropriate state regulatory 
commission. The state commission may affirm, or may overturn, the 
NANPA's decision to withhold numbering resources from the carrier based 
on its determination that the carrier has complied with the reporting 
and numbering resource application requirements herein. The state 
commission also may overturn the NANPA's decision to withhold numbering 
resources from the carrier based on its determination that the carrier 
has demonstrated a verifiable need for numbering resources and has 
exhausted all other available remedies.
    (5) State access to applications. State regulatory commissions shall 
have access to service provider's applications for numbering resources. 
The state commissions should request copies of such applications from 
the service providers operating within their states, and service 
providers must comply with state commission requests for copies of 
numbering resource applications. Carriers that fail to comply with a 
state commission request for numbering resource application materials 
shall be denied numbering resources.
    (h) National utilization threshold. All applicants for growth 
numbering resources shall achieve a 60% utilization threshold, 
calculated in accordance with paragraph (g)(3)(ii) of this section, for 
the rate center in which they are requesting growth numbering resources. 
This 60% utilization threshold shall increase by 5% on June 30, 2002, 
and annually thereafter until the utilization threshold reaches 75%.
    (i) Reclamation of numbering resources. (1) Reclamation refers to 
the process by which service providers are required to return numbering 
resources to the NANPA or the Pooling Administrator.
    (2) State commissions may investigate and determine whether service 
providers have activated their numbering resources and may request proof 
from all service providers that numbering resources have been activated 
and assignment of telephone numbers has commenced.
    (3) Service providers may be required to reduce contamination levels 
to facilitate reclamation and/or pooling.
    (4) State commissions shall provide service providers an opportunity 
to explain the circumstances causing the delay in activating and 
commencing assignment of their numbering resources prior to initiating 
reclamation.
    (5) The NANPA and the Pooling Administrator shall abide by the state 
commission's determination to reclaim numbering resources if the state 
commission is satisfied that the service provider has not activated and 
commenced assignment to end users of their numbering resources within 
six months of receipt.
    (6) The NANPA and Pooling Administrator shall initiate reclamation 
within sixty days of expiration of the service provider's applicable 
activation deadline.
    (7) If a state commission declines to exercise the authority 
delegated to it in this paragraph, the entity or entities designated by 
the Commission to serve as the NANPA shall exercise this authority with 
respect to NXX codes and the Pooling Administrator shall exercise this 
authority with respect to thousands-blocks. The NANPA and the Pooling 
Administrator shall consult with the Wireline Competition Bureau prior 
to exercising the authority delegated to it in this provision.
    (j) Sequential number assignment. (1) All service providers shall 
assign all available telephone numbers within an opened thousands-block 
before assigning telephone numbers from an uncontaminated thousands-
block, unless the available numbers in the

[[Page 98]]

opened thousands-block are not sufficient to meet a specific customer 
request. This requirement shall apply to a service provider's existing 
numbering resources as well as any new numbering resources it obtains in 
the future.
    (2) A service provider that opens an uncontaminated thousands-block 
prior to assigning all available telephone numbers within an opened 
thousands-block should be prepared to demonstrate to the state 
commission:
    (i) A genuine request from a customer detailing the specific need 
for telephone numbers; and
    (ii) The service provider's inability to meet the specific customer 
request for telephone numbers from the available numbers within the 
service provider's opened thousands-blocks.
    (3) Upon a finding by a state commission that a service provider 
inappropriately assigned telephone numbers from an uncontaminated 
thousands-block, the NANPA or the Pooling Administrator shall suspend 
assignment or allocation of any additional numbering resources to that 
service provider in the applicable NPA until the service provider 
demonstrates that it does not have sufficient numbering resources to 
meet a specific customer request.
    (k) Numbering audits. (1) All telecommunications service providers 
shall be subject to ``for cause'' and random audits to verify carrier 
compliance with Commission regulations and applicable industry 
guidelines relating to numbering administration.
    (2) The Enforcement Bureau will oversee the conduct and scope of all 
numbering audits conducted under the Commission's jurisdiction, and 
determine the audit procedures necessary to perform the audit. Numbering 
audits performed by independent auditors pursuant to this section shall 
be conducted in accordance with generally accepted auditing standards 
and the American Institute of Certified Public Accountants' standards 
for compliance attestation engagements, as supplemented by the guidance 
and direction of the Chief of the Enforcement Bureau.
    (3) Requests for ``for cause'' audits shall be forwarded to the 
Chief of the Enforcement Bureau, with a copy to the Chief of the Common 
Carrier Bureau. Requests must state the reason for which a ``for cause'' 
audit is being requested and include documentation of the alleged 
anomaly, inconsistency, or violation of the Commission rules or orders 
or applicable industry guidelines. The Chief of the Enforcement Bureau 
will provide carriers up to 30 days to provide a written response to a 
request for a ``for cause'' audit.

[61 FR 47353, Sept. 6, 1996, as amended at 62 FR 55182, Oct. 23, 1997; 
65 FR 37707, June 16, 2000; 66 FR 9531, Feb. 8, 2001; 67 FR 6434, Feb. 
12, 2002; 67 FR 13226, Mar. 21, 2002; 68 FR 25843, May 14, 2003; 71 FR 
65750, Nov. 9, 2006]



Sec. 52.16  Billing and Collection Agent.

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

[[Page 99]]

all decisions regarding nondisclosure of company-specific information.
    (d) Develop procedures to monitor industry compliance with reporting 
requirements and propose specific procedures to address reporting 
failures and late payments;
    (e) File annual reports with the appropriate regulatory authorities 
of the NANP member countries as requested; and
    (f) Obtain an audit from an independent auditor after the first year 
of operations and annually thereafter, which shall evaluate the validity 
of calculated payments. The B&C Agent shall submit the audit report to 
the Commission for appropriate review and action.
    (g) For the purposes of this rule, the term ``carrier(s)'' shall 
include interconnected VoIP providers as that term is defined in Sec. 
52.21(h).

[62 FR 55183, Oct. 23, 1997, as amended at 64 FR 41330, July 30, 1999; 
66 FR 9532, Feb. 8, 2001; 67 FR 13226, Mar. 21, 2002; 73 FR 9481, Feb. 
21, 2008]



Sec. 52.17  Costs of number administration.

    All telecommunications carriers in the United States shall 
contribute on a competitively neutral basis to meet the costs of 
establishing numbering administration.
    (a) Contributions to support numbering administration shall be the 
product of the contributors' end-user telecommunications revenues for 
the prior calendar year and a contribution factor determined annually by 
the Chief of the Common Carrier Bureau; such contributions to be no less 
than twenty-five dollars ($25). The contribution factor shall be based 
on the ratio of expected number administration expenses to end-user 
telecommunications revenues. Carriers that have no end-user 
telecommunications revenues shall contribute twenty-five dollars ($25). 
In the event that contributions exceed or are inadequate to cover 
administrative costs, the contribution factor for the following year 
shall be adjusted by an appropriate amount.
    (b) All telecommunications carriers in the United States shall 
complete and submit a ``Telecommunications Reporting Worksheet'' (as 
published by the Commission in the Federal Register), which sets forth 
the information needed to calculate contributions referred to in 
paragraph (a) of this section. The worksheet shall be certified to by an 
officer of the contributor, and subject to verification by the 
Commission or the B & C Agent at the discretion of the Commission. The 
Chief of the Common Carrier Bureau may waive, reduce, modify, or 
eliminate contributor reporting requirements that prove unnecessary and 
require additional reporting requirements that the Bureau deems 
necessary to the sound and efficient administration of the number 
administration cost recovery.
    (c) For the purposes of this section, the term ``telecommunications 
carrier'' or ``carrier'' shall include interconnected VoIP providers as 
that term is defined in Sec. 52.21(h).

[64 FR 41331, July 30, 1999, as amended at 73 FR 9481, Feb. 21, 2008]



Sec. 52.19  Area code relief.

    (a) State commissions may resolve matters involving the introduction 
of new area codes within their states. Such matters may include, but are 
not limited to: Directing whether area code relief will take the form of 
a geographic split, an overlay area code, or a boundary realignment; 
establishing new area code boundaries; establishing necessary dates for 
the implementation of area code relief plans; and directing public 
education efforts regarding area code changes.
    (b) State commissions may perform any or all functions related to 
initiation and development of area code relief plans, so long as they 
act consistently with the guidelines enumerated in this part, and 
subject to paragraph (b)(2) of this section. For the purposes of this 
paragraph, initiation and development of area code relief planning 
encompasses all functions related to the implementation of new area 
codes that were performed by central office code administrators prior to 
February 8, 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

[[Page 100]]

for a particular area code; and developing the details of a proposed 
area code relief plan or plans.
    (1) The entity or entities designated by the Commission to serve as 
central office code administrator(s) shall initiate and develop area 
code relief plans for each area code in each state that has not notified 
such entity or entities, pursuant to paragraph (b)(2) of this section, 
that the state will handle such functions.
    (2) Pursuant to paragraph (b)(1) of this section, a state commission 
must notify the entity or entities designated by the Commission to serve 
as central office code administrator(s) for its state that such state 
commission intends to perform matters related to initiation and 
development of area code relief planning efforts in its state. 
Notification shall be written and shall include a description of the 
specific functions the state commission intends to perform. Where the 
NANP Administrator serves as the central office code administrator, such 
notification must be made within 120 days of the selection of the NANP 
Administrator.
    (c) New area codes may be introduced through the use of:
    (1) A geographic area code split, which occurs when the geographic 
area served by an area code in which there are few or no central office 
codes left for assignment is split into two or more geographic parts;
    (2) An area code boundary realignment, which occurs when the 
boundary lines between two adjacent area codes are shifted to allow the 
transfer of some central office codes from an area code for which 
central office codes remain unassigned to an area code for which few or 
no central office codes are left for assignment; or
    (3) An all services area code overlay, which occurs when a new area 
code is introduced to serve the same geographic area as one or more 
existing area code(s), subject to the following conditions:
    (i) No all services area code overlay may be implemented unless all 
numbering resources in the new overlay area code are assigned to those 
entities requesting assignment on a first-come, first-serve basis, 
regardless of the identity of, technology used by, or type of service 
provided by that entity, except to the extent that a technology- or 
service-specific overlay is authorized by the Commission. No group of 
telecommunications carriers shall be excluded from assignment of 
numbering resources in the existing area code, or be assigned such 
resources only from the all services overlay area code, based solely on 
that group's provision of a specific type of telecommunications service 
or use of a particular technology; and
    (ii) No area code overlay may be implemented unless there exists, at 
the time of implementation, mandatory ten-digit dialing for every 
telephone call within and between all area codes in the geographic area 
covered by the overlay area code.
    (4) A technology-specific or service-specific overlay, which occurs 
when a new area code is introduced to serve the same geographic area as 
one or more existing area code(s) and numbering resources in the new 
area code overlay are assigned to a specific technology(ies) or 
service(s). State commissions may not implement a technology-specific or 
service-specific overlay without express authority from the Commission.

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



                      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-

[[Page 101]]

block number pooling where it is implemented and in accordance with the 
national thousands-block number pooling framework and implementation 
schedule established by the Commission.
    (c) Donation of thousands-blocks. (1) All service providers required 
to participate in thousands-block number pooling shall donate thousands-
blocks with ten percent or less contamination to the thousands-block 
number pool for the rate center within which the numbering resources are 
assigned.
    (2) All service providers required to participate in thousands-block 
number pooling shall be allowed to retain at least one thousands-block 
per rate center, even if the thousands-block is ten percent or less 
contaminated, as an initial block or footprint block.
    (d) Thousands-Block Pooling Administrator. (1) The Pooling 
Administrator shall be a non-governmental entity that is impartial and 
not aligned with any particular telecommunication industry segment, and 
shall comply with the same neutrality requirements that the NANPA is 
subject to under this part.
    (2) The Pooling Administrator shall maintain no more than a six-
month inventory of telephone numbers in each thousands-block number 
pool.

[65 FR 37709, June 16, 2000, as amended at 66 FR 9532, Feb. 8, 2001; 68 
FR 43009, July 21, 2003]



Sec. 52.21  Definitions.

    As used in this subpart:
    (a) The term 100 largest MSAs includes the 100 largest MSAs as 
identified in the 1990 U.S. Census reports, as set forth in the Appendix 
to this part, as well as those areas identified as one of the largest 
100 MSAs on subsequent updates to the U.S. Census reports.
    (b) The term broadband PCS has the same meaning as that term is 
defined in Sec. 24.5 of this chapter.
    (c) The term cellular service has the same meaning as that term is 
defined in Sec. 22.99 of this chapter.
    (d) The term covered CMRS means broadband PCS, cellular, and 800/900 
MHz SMR licensees that hold geographic area licenses or are incumbent 
SMR wide area licensees, and offer real-time, two-way switched voice 
service, are interconnected with the public switched network, and 
utilize an in-network switching facility that enables such CMRS systems 
to reuse frequencies and accomplish seamless hand-offs of subscriber 
calls.
    (e) The term database method means a number portability method that 
utilizes one or more external databases for providing called party 
routing information.
    (f) The term downstream database means a database owned and operated 
by an individual carrier for the purpose of providing number portability 
in conjunction with other functions and services.
    (g) The term incumbent wide area SMR licensee has the same meaning 
as that term is defined in Sec. 20.3 of this chapter.
    (h) The term ``interconnected VoIP provider'' is an entity that 
provides interconnected VoIP service as that term is defined in 47 CFR 
9.3.
    (i) The term IP Relay provider means an entity that provides IP 
Relay as defined by 47 CFR 64.601.
    (j) The term local exchange carrier means any person that is engaged 
in the provision of telephone exchange service or exchange access. For 
purposes of this subpart, such term does not include a person insofar as 
such person is engaged in the provision of a commercial mobile service 
under 47 U.S.C. 332(c).
    (k) The term local number portability administrator (LNPA) means an 
independent, non-governmental entity, not aligned with any particular 
telecommunications industry segment, whose duties are determined by the 
NANC.
    (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

[[Page 102]]

numbers without impairment of quality, reliability, or convenience when 
switching from one telecommunications carrier to another.
    (o) The term regional database means an SMS database or an SMS/SCP 
pair that contains information necessary for carriers to provide number 
portability in a region as determined by the NANC.
    (p) The term Registered Internet-based TRS User has the meaning set 
forth in 47 CFR 64.601.
    (q) The term service control point (SCP) means a database in the 
public switched network which contains information and call processing 
instructions needed to process and complete a telephone call. The 
network switches access an SCP to obtain such information. Typically, 
the information contained in an SCP is obtained from the SMS.
    (r) The term service management system (SMS) means a database or 
computer system not part of the public switched network that, among 
other things:
    (1) Interconnects to an SCP and sends to that SCP the information 
and call processing instructions needed for a network switch to process 
and complete a telephone call; and
    (2) Provides telecommunications carriers with the capability of 
entering and storing data regarding the processing and completing of a 
telephone call.
    (s) The term service portability means the ability of users of 
telecommunications services to retain existing telecommunications 
numbers without impairment of quality, reliability, or convenience when 
switching from one telecommunications service to another, without 
switching from one telecommunications carrier to another.
    (t) The term service provider portability means the ability of users 
of telecommunications services to retain, at the same location, existing 
telecommunications numbers without impairment of quality, reliability, 
or convenience when switching from one telecommunications carrier to 
another.
    (u) The term transitional number portability measure means a method 
that allows one local exchange carrier to transfer telephone numbers 
from its network to the network of another telecommunications carrier, 
but does not comply with the performance criteria set forth in 52.3(a). 
Transitional number portability measures are technically feasible 
methods of providing number portability including Remote Call Forwarding 
(RCF), Direct Inward Dialing (DID), Route Indexing--Portability Hub (RI-
PH), Directory Number Route Indexing (DNRI) and other comparable 
methods.
    (v) The term VRS provider means an entity that provides VRS as 
defined by 47 CFR 64.601.
    (w) The term 2009 LNP Porting Intervals Order refers to In the 
Matters of Local Number Portability Porting Interval and Validation 
Requirements; Telephone Number Portability, WC Docket No. 07-244, CC 
Docket No. 95-116, Report and Order and Further Notice of Proposed 
Rulemaking, FCC 09-41 (2009).

[61 FR 38637, July 25, 1996. Redesignated at 61 FR 47353, Sept. 6, 1996, 
as amended at 61 FR 47355, Sept. 6, 1996; 63 FR 68203, Dec. 10, 1998; 67 
FR 6435, Feb. 12, 2002; 68 FR 43009, July 21, 2003; 73 FR 9481, Feb. 21, 
2008; 73 FR 41293, July 18, 2008; 74 FR 31638, July 2, 2009]



Sec. 52.23  Deployment of long-term database methods for number portability by 

LECs.

    (a) Subject to paragraphs (b) and (c) of this section, all local 
exchange carriers (LECs) must provide number portability in compliance 
with the following performance criteria:
    (1) Supports network services, features, and capabilities existing 
at the time number portability is implemented, including but not limited 
to emergency services, CLASS features, 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;

[[Page 103]]

    (7) Is able to migrate to location and service portability; and
    (8) Has no significant adverse impact outside the areas where number 
portability is deployed.
    (b)(1) All LECs must provide a long-term database method for number 
portability in the 100 largest Metropolitan Statistical Areas (MSAs), as 
defined in Sec. 52.21(k), in switches for which another carrier has 
made a specific request for the provision of number portability, subject 
to paragraph (b)(2) of this section.
    (2) Any procedure to identify and request switches for deployment of 
number portability must comply with the following criteria:
    (i) Any wireline carrier that is certified (or has applied for 
certification) to provide local exchange service in a state, or any 
licensed CMRS provider, must be permitted to make a request for 
deployment of number portability in that state;
    (ii) Carriers must submit requests for deployment at least nine 
months before the deployment deadline for the MSA;
    (iii) A LEC must make available upon request to any interested 
parties a list of its switches for which number portability has been 
requested and a list of its switches for which number portability has 
not been requested; and
    (iv) After the deadline for deployment of number portability in an 
MSA in the 100 largest MSAs, according to the deployment schedule set 
forth in the appendix to this part, a LEC must deploy number portability 
in that MSA in additional switches upon request within the following 
time frames:
    (A) For remote switches supported by a host switch equipped for 
portability (``Equipped Remote Switches''), within 30 days;
    (B) For switches that require software but not hardware changes to 
provide portability (``Hardware Capable Switches''), within 60 days;
    (C) For switches that require hardware changes to provide 
portability (``Capable Switches Requiring Hardware''), within 180 days; 
and
    (D) For switches not capable of portability that must be replaced 
(``Non-Capable Switches''), within 180 days.
    (c) Beginning January 1, 1999, all LECs must make a long-term 
database method for number portability available within six months after 
a specific request by another telecommunications carrier in areas in 
which that telecommunications carrier is operating or plans to operate.
    (d) The Chief, Common Carrier Bureau, may waive or stay any of the 
dates in the implementation schedule, as the Chief determines is 
necessary to ensure the efficient development of number portability, for 
a period not to exceed 9 months (i.e., no later than September 30, 
1999).
    (e) In the event a LEC is unable to meet the Commission's deadlines 
for implementing a long-term database method for number portability, it 
may file with the Commission at least 60 days in advance of the deadline 
a petition to extend the time by which implementation in its network 
will be completed. A LEC seeking such relief must demonstrate through 
substantial, credible evidence the basis for its contention that it is 
unable to comply with the deployment schedule set forth in the appendix 
to this part 52. Such requests must set forth:
    (1) The facts that demonstrate why the carrier is unable to meet the 
Commission's deployment schedule;
    (2) A detailed explanation of the activities that the carrier has 
undertaken to meet the implementation schedule prior to requesting an 
extension of time;
    (3) An identification of the particular switches for which the 
extension is requested;
    (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

[[Page 104]]

any technically feasible long-term database method for number 
portability in the Chicago, Illinois, area. The carriers participating 
in the test must jointly file with the Common Carrier Bureau a report of 
their findings within 30 days following completion of the test. The 
Chief, Common Carrier Bureau, shall monitor developments during the 
field test, and may adjust the field test completion deadline as 
necessary.
    (h)(1) Porting from a wireline carrier to a wireless carrier is 
required where the requesting wireless carrier's ``coverage area,'' as 
defined in paragraph (h)(2) of this section, overlaps the geographic 
location in which the customer's wireline number is provisioned, 
provided that the porting-in carrier maintains the number's original 
rate center designation following the port.
    (2) The wireless ``coverage area'' is defined as the area in which 
wireless service can be received from the wireless carrier.

[61 FR 38637, July 25, 1996, as amended at 62 FR 18294, Apr. 15, 1997; 
67 FR 13226, Mar. 21, 2002; 68 FR 43009, July 21, 2003; 73 FR 9481, Feb. 
21, 2008]



Sec. 52.25  Database architecture and administration.

    (a) The North American Numbering Council (NANC) shall direct 
establishment of a nationwide system of regional SMS databases for the 
provision of long-term database methods for number portability.
    (b) All telecommunications carriers shall have equal and open access 
to the regional databases.
    (c) The NANC shall select a local number portability 
administrator(s) (LNPA(s)) to administer the regional databases within 
seven months of the initial meeting of the NANC.
    (d) The NANC shall determine whether one or multiple 
administrator(s) should be selected, whether the LNPA(s) can be the same 
entity selected to be the North American Numbering Plan Administrator, 
how the LNPA(s) should be selected, the specific duties of the LNPA(s), 
the geographic coverage of the regional databases, the technical 
interoperability and operational standards, the user interface between 
telecommunications carriers and the LNPA(s), the network interface 
between the SMS and the downstream databases, and the technical 
specifications for the regional databases.
    (e) Once the NANC has selected the LNPA(s) and determined the 
locations of the regional databases, it must report its decisions to the 
Commission.
    (f) The information contained in the regional databases shall be 
limited to the information necessary to route telephone calls to the 
appropriate telecommunications carriers. The NANC shall determine what 
specific information is necessary.
    (g) Any state may opt out of its designated regional database and 
implement a state-specific database. A state must notify the Wireline 
Competition Bureau and NANC that it plans to implement a state-specific 
database within 60 days from the release date of the Public Notice 
issued by the Chief, Wireline Competition Bureau, identifying the 
administrator selected by the NANC and the proposed locations of the 
regional databases. Carriers may challenge a state's decision to opt out 
of the regional database system by filing a petition with the 
Commission.
    (h) Individual state databases must meet the national requirements 
and operational standards recommended by the NANC and adopted by the 
Commission. In addition, such state databases must be technically 
compatible with the regional system of databases and must not interfere 
with the scheduled implementation of the regional databases.
    (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]

[[Page 105]]



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 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]

[[Page 106]]



Sec. 52.31  Deployment of long-term database methods for number portability by 

CMRS providers.

    (a) By November 24, 2003, all covered CMRS providers must provide a 
long-term database method for number portability, including the ability 
to support roaming, in the 100 largest MSAs, as defined in Sec. 
52.21(k), in compliance with the performance criteria set forth in 
section 52.23(a) of this part, in switches for which another carrier has 
made a specific request for the provision of number portability, subject 
to paragraph (a)(1) of this section. A licensee may have more than one 
CMRS system, but only the systems that satisfy the definition of covered 
CMRS are required to provide number portability.
    (1) Any procedure to identify and request switches for development 
of number portability must comply with the following criteria:
    (i) Any wireline carrier that is certified (or has applied for 
certification) to provide local exchange service in a state, or any 
licensed CMRS provider, must be permitted to make a request for 
deployment of number portability in that state;
    (ii) Carries requesting deployment in the 100 largest MSAs by 
November 24, 2003 must submit requests by February 24, 2003.
    (iii) A covered CMRS provider must make available upon request to 
any interested parties a list of its switches for which number 
portability has been requested and a list of its switches for which 
number portability has not been requested;
    (iv) After November 24, 2003, a covered CMRS provider must deploy 
number portability in additional switches serving the 100 largest MSAs 
upon request within the following time frames:
    (A) For remote switches supported by a host switch equipped for 
portability (``Equipped Remote Switches''), within 30 days;
    (B) For switches that require software but not hardware changes to 
provide portability (``Hardware Capable Switches''), within 60 days;
    (C) For switches that require hardware changes to provide 
portability (``Capable Switches Requiring Hardware''), within 180 days; 
and
    (D) For switches not capable of portability that must be replaced 
(``Non-Capable Switches''), within 180 days.
    (v) Carriers must be able to request deployment in any wireless 
switch that serves any area within the MSA, even if the wireless switch 
is outside that MSA, or outside any of the MSAs identified in the 
Appendix to this part.
    (2) By November 24, 2002, all covered CMRS providers must be able to 
support roaming nationwide.
    (b) By December 31, 1998, all covered CMRS providers must have the 
capability to obtain routing information, either by querying the 
appropriate database themselves or by making arrangements with other 
carriers that are capable of performing database queries, so that they 
can deliver calls from their networks to any party that has retained its 
number after switching from one telecommunications carrier to another.
    (c) [Reserved]
    (d) In the event a carrier subject to paragraphs (a) and (b) of this 
section is unable to meet the Commission's deadlines for implementing a 
long-term number portability method, it may file with the Commission at 
least 60 days in advance of the deadline a petition to extend the time 
by which implementation in its network will be completed. A carrier 
seeking such relief must demonstrate through substantial, credible 
evidence the basis for its contention that it is unable to comply with 
paragraphs (a) and (b) of this section. Such requests must set forth:
    (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.

[[Page 107]]

    (e) The Chief, Wireless Telecommunications Bureau, may establish 
reporting requirements in order to monitor the progress of covered CMRS 
providers implementing number portability, and may direct such carriers 
to take any actions necessary to ensure compliance with this deployment 
schedule.

[61 FR 38637, July 25, 1996, as amended at 62 FR 18295, Apr. 15, 1997; 
63 FR 68204, Dec. 10, 1998; 64 FR 22563, Apr. 27, 1999; 68 FR 43009, 
July 21, 2003; 71 FR 65750, Nov. 9, 2006]



Sec. 52.32  Allocation of the shared costs of long-term number portability.

    (a) The local number portability administrator, as defined in Sec. 
52.21(h), of each regional database, as defined in Sec. 52.21(1), shall 
recover the shared costs of long-term number portability attributable to 
that regional database from all telecommunications carriers providing 
telecommunications service in areas that regional database serves. 
Pursuant to its duties under Sec. 52.26, the local number portability 
administrator shall collect sufficient revenues to fund the operation of 
the regional database by:
    (1) Assessing a $100 yearly contribution on each telecommunications 
carrier identified in paragraph (a) introductory text that has no 
intrastate, interstate, or international end-user telecommunications 
revenue derived from providing telecommunications service in the areas 
that regional database serves, and
    (2) Assessing on each of the other telecommunications carriers 
providing telecommunications service in areas that regional database 
serves, a charge that recovers the remaining shared costs of long-term 
number portability attributable to that regional database in proportion 
to the ratio of:
    (i) The sum of the intrastate, interstate, and international end-
user telecommunications revenues that such telecommunications carrier 
derives from providing telecommunications service in the areas that 
regional database serves, ii) to the sum of the intrastate, interstate, 
and international end-user telecommunications revenues that all 
telecommunications carriers derive from providing telecommunications 
service in the areas that regional database serves.
    (b) All telecommunications carriers providing service in the United 
States shall complete and submit a ``Telecommunications Reporting 
Worksheet'' (as published by the Commission in the Federal Register), 
which sets forth the information needed to calculate contributions 
referred to in paragraph (a) of this section. The worksheet shall be 
certified to by an officer of the contributor, and subject to 
verification by the Commission or the administrator at the discretion of 
the Commission. The Chief of the Wireline Competition Bureau may waive, 
reduce, modify, or eliminate contributor reporting requirements that 
prove unnecessary and require additional reporting requirements that the 
Bureau deems necessary to the sound and efficient administration of 
long-term number portability.
    (c) Local number portability administrators shall keep all data 
obtained from contributors confidential and shall not disclose such data 
in company-specific form unless directed to do so by the Commission. 
Subject to any restrictions imposed by the Chief of the Wireline 
Competition Bureau, the local number portability administrators may 
share data obtained from carriers with the administrators of the 
universal service support mechanism (See 47 CFR 54.701 of this chapter), 
the TRS Fund (See 47 CFR 64.604(c)(4)(iii)(H) of this chapter), and the 
North American Numbering Plan cost recovery (See 47 CFR 52.16). The 
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.

[[Page 108]]

    (d) Once a telecommunications carrier has been allocated, pursuant 
to paragraph (a)(1) or (a)(2) of this section, its portion of the shared 
costs of long-term number portability attributable to a regional 
database, the carrier shall treat that portion as a carrier-specific 
cost directly related to providing number portability.
    (e) For the purposes of this section, the term ``telecommunications 
carrier'' shall include interconnected VoIP providers as that term is 
defined in Sec. 52.21(h); and ``telecommunications service'' shall 
include ``interconnected VoIP service'' as that term is defined in 47 
CFR 9.3.

[63 FR 35160, June 29, 1998, as amended at 64 FR 41331, July 30, 1999; 
67 FR 13226, Mar. 21, 2002; 73 FR 9481, Feb. 21, 2008]



Sec. 52.33  Recovery of carrier-specific costs directly related to providing 

long-term number portability.

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

[[Page 109]]

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 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.

[[Page 110]]

    (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.
    (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]



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

[[Page 111]]

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 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

[[Page 112]]

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 an equitable basis; and if 
a Responsible Organization does not have an identified toll free 
subscriber agreeing to be billed for service associated with each toll 
free number reserved from the database, or if a Responsible Organization 
does not have an identified, billed toll free subscriber before 
switching a number from reserved or assigned to working status, then 
there is a rebuttable presumption that the Responsible Organization is 
warehousing numbers. Responsible Organizations that warehouse numbers 
will be subject to penalties.



Sec. 52.107  Hoarding.

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

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



Sec. 52.109  Permanent cap on number reservations.

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

[[Page 113]]

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
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

[[Page 114]]

 
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]

                   Subpart F_Alarm Monitoring Services

53.501 [Reserved]

    Authority: Sections 1-5, 7, 201-05, 218, 251, 253, 271-75, 48 Stat. 
1070, as amended, 1077; 47 U.S.C. 151-55, 157, 201-05, 218, 251, 253, 
271-75, unless otherwise noted.

    Source: 62 FR 2967, Jan. 21, 1997, unless otherwise noted.



                      Subpart A_General Information



Sec. 53.1  Basis and purpose.

    (a) Basis. The rules in this part are issued pursuant to the 
Communications Act of 1934, as amended.
    (b) Purpose. The purpose of the rules in this part is to implement 
sections 271 and 272 of the Communications Act of 1934, as amended, 47 
U.S.C. 271 and 272.



Sec. 53.3  Terms and definitions.

    Terms used in this part have the following meanings:
    Act. The Act means the Communications Act of 1934, as amended.
    Affiliate. An affiliate is a person that (directly or indirectly) 
owns or controls, is owned or controlled by, or is under common 
ownership or control with, another person. For purposes of this part, 
the term ``own'' means to own an equity interest (or the equivalent 
thereof) of more than 10 percent.
    AT&T Consent Decree. The AT&T Consent Decree is the order entered 
August 24, 1982, in the antitrust action styled United States v. Western 
Electric, Civil Action No. 82-0192, in the United States District Court 
for the District of Columbia, and any judgment or order with respect to 
such action entered on or after August 24, 1982.
    Bell Operating Company (BOC). The term Bell operating company
    (1) Means any of the following companies: Bell Telephone Company of 
Nevada, Illinois Bell Telephone Company, Indiana Bell Telephone Company, 
Incorporated, Michigan Bell Telephone Company, New England Telephone and 
Telegraph Company, New Jersey Bell Telephone Company, New York Telephone 
Company, U S West Communications Company, South Central Bell Telephone 
Company, Southern Bell Telephone and Telegraph Company, Southwestern 
Bell Telephone Company, The Bell Telephone Company of Pennsylvania, The 
Chesapeake and Potomac Telephone Company, The Chesapeake and Potomac 
Telephone Company of Maryland, The Chesapeake and Potomac Telephone 
Company of Virginia, The Chesapeake and Potomac Telephone Company of 
West Virginia,

[[Page 115]]

The Diamond State Telephone Company, The Ohio Bell Telephone Company, 
The Pacific Telephone and Telegraph Company, or Wisconsin Telephone 
Company; and
    (2) Includes any successor or assign of any such company that 
provides wireline telephone exchange service; but
    (3) Does not include an affiliate of any such company, other than an 
affiliate described in paragraphs (1) or (2) of this definition.
    In-Region InterLATA service. In-region interLATA service is 
interLATA service that originates in any of a BOC's in-region states, 
which are the states in which the BOC or any of its affiliates was 
authorized to provide wireline telephone exchange service pursuant to 
the reorganization plan approved under the AT&T Consent Decree, as in 
effect on February 7, 1996. For the purposes of this part, 800 service, 
private line service, or equivalent services that terminate in a BOC's 
in-region state and allow the called party to determine the interLATA 
carrier are considered to be in-region interLATA service.
    InterLATA Information Service. An interLATA information service is 
an information service that incorporates as a necessary, bundled element 
an interLATA telecommunications transmission component, provided to the 
customer for a single charge.
    InterLATA Service. An interLATA service is a service that involves 
telecommunications between a point located in a LATA and a point located 
outside such area. The term ``interLATA service'' includes both 
interLATA telecommunications services and interLATA information 
services.
    Local Access and Transport Area (LATA). A LATA is a contiguous 
geographic area:
    (1) Established before February 8, 1996 by a BOC such that no 
exchange area includes points within more than one metropolitan 
statistical area, consolidated metropolitan statistical area, or state, 
except as expressly permitted under the AT&T Consent Decree; or
    (2) Established or modified by a BOC after February 8, 1996 and 
approved by the Commission.
    Local Exchange Carrier (LEC). A LEC is any person that is engaged in 
the provision of telephone exchange service or exchange access. Such 
term does not include a person insofar as such person is engaged in the 
provision of commercial mobile service under section 332(c) of the Act, 
except to the extent that the Commission finds that such service should 
be included in the definition of such term.
    Out-of-Region InterLATA service. Out-of-region interLATA service is 
interLATA service that originates outside a BOC's in-region states.
    Section 272 affiliate. A section 272 affiliate is a BOC affiliate 
that complies with the separate affiliate requirements of section 272(b) 
of the Act and the regulations contained in this part.

Subpart B--Bell Operating Company Entry Into InterLATA Services [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

[[Page 116]]

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]



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:

[[Page 117]]

    (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 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.

[[Page 118]]

    (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 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.

[[Page 119]]

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.
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

                      Defined Terms and Eligibility

54.600 Terms and definitions.
54.601 Health care provider eligibility.
54.602 Health care support mechanism.

                       Telecommunications Program

54.603 Competitive bidding and certification requirements.
54.604 Consortia, telecommunications services, and existing contracts.
54.605 Determining the urban rate.
54.607 Determining the rural rate.
54.609 Calculating support.
54.613 Limitations on supported services for rural health care 
          providers.
54.615 Obtaining services.
54.619 Audits and recordkeeping.
54.623 Annual filing and funding commitment requirement.
54.625 Support for telecommunications services beyond the maximum 
          supported distance for rural health care providers.

                         Healthcare Connect Fund

54.630 Eligible recipients.
54.631 Designation of Consortium Leader.
54.632 Letters of agency (LOA).
54.633 Health care provider contribution.
54.634 Eligible services.
54.635 Eligible equipment.
54.636 Eligible participant-constructed and owned network facilities for 
          consortium applicants.
54.637 Off-site data centers and off-site administrative offices.
54.638 Upfront payments.
54.639 Ineligible expenses.
54.640 Eligible vendors.
54.642 Competitive bidding requirement and exemptions.
54.643 Funding commitments.
54.644 Multi-year commitments.
54.645 Payment process.
54.646 Site and service substitutions.
54.647 Data collection and reporting.
54.648 Audits and recordkeeping.
54.649 Certifications.

                           General Provisions

54.671 Resale.
54.672 Duplicate support.
54.675 Cap.
54.679 Election to offset support against annual universal service fund 
          contribution.
54.680 Validity of electronic signatures.

[[Page 120]]

                        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.

    Authority: Sections 1, 4(i), 5, 201, 205, 214, 219, 220, 254, 
303(r), and 403 of the Communications Act of 1934, as amended, and 
section 706 of the Communications Act of 1996, as amended; 47 U.S.C. 
151, 154(i), 155, 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

[[Page 121]]

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:
    (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.

[[Page 122]]

    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.
    Rural incumbent local exchange carrier. ``Rural incumbent local 
exchange carrier'' is a carrier that meets the definitions of ``rural 
telephone company'' and ``incumbent local exchange carrier,'' as those 
terms are defined in Sec. 51.5 of this chapter.
    Rural telephone company. ``Rural telephone company'' has the same 
meaning as that term is defined in Sec. 51.5 of this chapter.
    State commission. The term ``state commission'' means the 
commission, board or official (by whatever name designated) that, under 
the laws of any state, has regulatory jurisdiction with respect to 
intrastate operations of carriers.
    Technically feasible. ``Technically feasible'' means capable of 
accomplishment as evidenced by prior success under similar 
circumstances. For example, preexisting access at a particular point 
evidences the technical feasibility of access at substantially similar 
points. A determination of technical feasibility does not consider 
economic, accounting, billing, space or site except that space and site 
may be considered if there is no possibility of expanding available 
space.
    Telecommunications. ``Telecommunications'' is the transmission, 
between or among points specified by the user, of information of the 
user's choosing, without change in the form or content of the 
information as sent and received.
    Telecommunications carrier. A ``telecommunications carrier'' is any 
provider of telecommunications services, except that such term does not 
include aggregators of telecommunications services as defined in section 
226 of the Act. A telecommunications carrier shall be treated as a 
common carrier under the Act only to the extent that 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

[[Page 123]]

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; 78 FR 13982, Mar. 1, 
2013]



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 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.

[[Page 124]]

    (c) Causes for suspension and debarment. Causes for suspension and 
debarment are conviction of or civil judgment for attempt or commission 
of criminal fraud, theft, embezzlement, forgery, bribery, falsification 
or destruction of records, making false statements, receiving stolen 
property, making false claims, obstruction of justice and other fraud or 
criminal offense arising out of activities associated with or related to 
the schools and libraries support mechanism, the high-cost support 
mechanism, the rural health care support mechanism, and the low-income 
support mechanism.
    (d) Effect of suspension and debarment. Unless otherwise ordered, 
any persons suspended or debarred shall be excluded from activities 
associated with or related to the schools and libraries support 
mechanism, the high-cost support mechanism, the rural health care 
support mechanism, and the low-income support mechanism. Suspension and 
debarment of a person other than an individual constitutes suspension 
and debarment of all divisions and/or other organizational elements from 
participation in the program for the suspension and debarment period, 
unless the notice of suspension and proposed debarment is limited by its 
terms to one or more specifically identified individuals, divisions, or 
other organizational elements or to specific types of transactions.
    (e) Procedures for suspension and debarment. The suspension and 
debarment process shall proceed as follows:
    (1) Upon evidence that there exists cause for suspension and 
debarment, the Commission shall provide prompt notice of suspension and 
proposed debarment to the person. Suspension shall be effective upon the 
earlier of receipt of notification or publication in the Federal 
Register.
    (2) The notice shall:
    (i) Give the reasons for the proposed debarment in terms sufficient 
to put a person on notice of the conduct or transaction(s) upon which it 
is based and the cause relied upon, namely, the entry of a criminal 
conviction or civil judgment arising out of activities associated with 
or related to the schools and libraries support mechanism, the high-cost 
support mechanism, the rural health care support mechanism, and the low-
income support mechanism;
    (ii) Explain the applicable debarment procedures;
    (iii) Describe the effect of debarment.
    (3) A person subject to proposed debarment, or who has an existing 
contract with a person subject to proposed debarment or intends to 
contract with such a person to provide or receive services in matters 
arising out of activities associated with or related to the schools and 
libraries support mechanism, the high-cost support mechanism, the rural 
health care support mechanism, and the low-income support mechanism may 
contest debarment or the scope of the proposed debarment. A person 
contesting debarment or the scope of proposed debarment must file 
arguments and any relevant documentation within thirty (30) calendar 
days of receipt of notice or publication in the Federal Register, 
whichever is earlier.
    (4) A person subject to proposed debarment, or who has an existing 
contract with a person subject to proposed debarment or intends to 
contract with such a person to provide or receive services in matters 
arising out of activities associated with or related to the schools and 
libraries support mechanism, the high-cost support mechanism, the rural 
health care support mechanism, and the low-income support mechanism may 
also contest suspension or the scope of suspension, but such action will 
not ordinarily be 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

[[Page 125]]

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 
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

[[Page 126]]

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 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

[[Page 127]]

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 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

[[Page 128]]

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 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

[[Page 129]]

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 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.

[[Page 130]]

 
Information Origination/       Account 6310
 Termination Expenses.
Cable and Wire Facilities      Account 6410
 Expenses.
Other Property, Plant and      Account 6510
 Equipment Expenses.
Network Operations Expenses..  Account 6530
Access Expense...............  Account 6540
Depreciation and Amortization  Account 6560
 Expense.
Marketing Expense............  Account 6610
Services Expense.............  Account 6620
Corporate Operations Expense.  Account 6720
Operating Taxes..............  Accounts 7230, 7240
Federal Investment Tax         Account 7210
 Credits.
Provision for Deferred         Account 7250
 Operating Income Taxes-Net.
Allowance for Funds Used       Included in Account 7300
 During Construction.
Charitable Contributions.....  Included in Account 7300
Interest and Related Items...  Account 7500
                                   IV
Other Non-Current Assets.....  Included in Account 1410
Deferred Maintenance and       Included in Account 1438
 Retirements.
Deferred Charges.............  Included in Account 1438
Other Jurisdictional Assets    Accounts 1500, 4370
 and Liabilities.
Customers' Deposits..........  Account 4040
Other Long-Term Liabilities..  Included in Account 4300
 

    (c) Allocation of accounts to switching. The Administrator shall 
allocate to local switching, the accounts reported pursuant to paragraph 
(b) of this section as prescribed in this paragraph.
    (1) General Support Assets (Account 2110); Amortizable Tangible 
Assets (Account 2680); Intangibles (Account 2690); and General Support 
Expenses (Account 6120) shall be allocated according to the following 
factor:

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

    (2) Telecommunications Plant--Other (Accounts 2002, 2003, 2005); 
Rural Telephone Bank (RTB) Stock (included in Account 1410); Materials 
and Supplies (Account 1220.1); Cash Working Capital (Sec. 65.820(d) of 
this chapter); Accumulated Amortization (Included in Accounts 2005, 
2680, 2690, 3410); Net 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:


[[Page 131]]


Account 2210 Category 3 / Account 2001.

    (5) Corporate Operations Expenses (Account 6720) shall be allocated 
according to the following factor:

[[Account 2210 Category 3 (Account 2210 + Account 2220 + Account 2230)]] 
          x (Account 6210 + Account 6220 + Account 6230)] + [(Account 
          6530 + Account 6610 + Account 6620) x (Account 2210 Category 3 
          Account 2001)] (Account 6210 + Account 6220 + Account 6230 + 
          Account 6310 + Account 6410 + Account 6530 + Account 6610 + 
          Account 6620).

    (6) Central Office Switching, Operator Systems, and Central Office 
Transmission Expenses (Account 6210, Account 6220, Account 6230) shall 
be allocated according to the following factor:

Account 2210 Category 3 / (Accounts 2210 + 2220 + 2230).

    (d) Calculation of the projected annual unseparated local switching 
revenue requirement. The Administrator shall calculate the projected 
annual unseparated local switching revenue requirement by summing the 
components listed in this paragraph.
    (1) Return on Investment attributable to COE Category 3 shall be 
obtained by multiplying the average projected unseparated local 
switching net investment by the authorized interstate rate of return. 
Projected unseparated local switching net investment shall be calculated 
as of each December 31 by deducting the accumulated reserves, deferrals 
and customer deposits attributable to the COE Category 3 investment from 
the gross investment attributable to COE Category 3. The average 
projected unseparated local switching net investment shall be calculated 
by summing the projected unseparated local switching net investment as 
of December 31 of the calendar year following the filing year and such 
investment as of December 31 of the filing year and dividing by 2.
    (2) Depreciation expense attributable to COE Category 3 investment, 
allocated pursuant to paragraph (c) of this section.
    (3) All expenses, excluding depreciation expense, collected in 
paragraph (b) of this section, allocated pursuant to paragraph (c) of 
this section.
    (4) Federal income tax attributable to COE Category 3 shall be 
calculated using the following formula; the accounts listed shall be 
allocated pursuant to paragraph (c) of this section:

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

    (e) True-up adjustment--(1) Submission of true-up data. 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]

[[Page 132]]



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 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 on the date it files its annual access 
tariff filing with the Commission, 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 on the 
date it files its annual access tariff filing with the Commission, 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, as amended at 78 FR 26268, May 6, 2013]

[[Page 133]]



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-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.

[[Page 134]]

    (2) For carriers that bought or acquired exchanges from an 
unaffiliated carrier before January 10, 2005, and are not subject to the 
exception in paragraph (c) of this section, the index year expense 
adjustment for acquired exchange(s) shall be equal to the rural 
incumbent local exchange carrier's high-cost loop expense adjustment for 
the acquired exchanges calculated for the carrier's first year of 
operation of the acquired exchange(s). At the carrier's option, the 
first year of operation of the transferred exchanges shall commence at 
the beginning of either the first calendar year or the next calendar 
quarter following the transfer of exchanges. The index year expense 
adjustment shall be determined using cost data for the acquired 
exchange(s) submitted in accordance with Sec. Sec. 36.611 and 36.612 of 
this chapter and shall be calculated in accordance with Sec. 36.631 of 
this chapter. The index year expense adjustment for rural telephone 
companies that have operated exchanges subject to this section for more 
than a full year on the effective date of this paragraph shall be based 
on loop cost data submitted in accordance with Sec. 36.612 of this 
chapter for the year ending on the nearest calendar quarter following 
the effective date of this paragraph. For each subsequent year, ending 
on the same calendar quarter as the index year, a loop cost expense 
adjustment, using the costs of the acquired exchanges, will be 
calculated pursuant to Sec. 36.631 of this chapter and will be compared 
to the index year expense adjustment. Safety valve support is calculated 
pursuant to paragraph (d)(3) of this section.
    (3) Up to fifty (50) percent of any positive difference between the 
transferred exchanges loop cost expense adjustment and the index year 
expense adjustment will be designated as the transferred exchange's 
safety valve loop cost expense adjustment and will be available in 
addition to the per-line loop-related support transferred from the 
selling carrier to the acquiring carrier pursuant to Sec. 54.305(b). In 
no event shall a study area's safety valve loop cost expense adjustment 
exceed the difference between the carrier's study area loop cost expense 
adjustment calculated pursuant to Sec. 36.631 of this chapter and 
transferred support amounts available to the acquired exchange(s) under 
paragraph (b) of this section. Safety valve support shall not transfer 
with acquired exchanges.
    (e) The sum of the safety valve loop cost expense adjustment for all 
eligible study areas operated by rural telephone companies shall not 
exceed five (5) percent of the total rural incumbent local exchange 
carrier portion of the annual nationwide loop cost expense adjustment 
calculated pursuant to Sec. 36.603 of this chapter. The five (5) 
percent cap on the safety valve mechanism shall be based on the lesser 
of the rural incumbent local exchange carrier portion of the annual 
nationwide loop cost expense adjustment calculated pursuant to Sec. 
36.603 of this chapter or the sum of rural incumbent local exchange 
carrier expense adjustments calculated pursuant to Sec. 36.631 of this 
chapter. The percentage multiplier used to derive study area safety 
valve loop cost expense adjustments for rural telephone companies shall 
be the lesser of fifty (50) percent or a percentage calculated to 
produce the maximum total safety valve loop cost expense adjustment for 
all eligible study areas pursuant to this paragraph. The safety valve 
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

[[Page 135]]

captures the subscriber lines of an incumbent local exchange carrier 
(LEC) or serves new subscriber lines in the incumbent LEC's service 
area.
    (1) A competitive eligible telecommunications carrier serving loops 
in the service area of a rural incumbent local exchange carrier, as that 
term is defined in Sec. 54.5 of this chapter, shall receive support for 
each line it serves in a particular service area based on the support 
the incumbent LEC would receive for each such line, disaggregated by 
cost zone if disaggregation zones have been established within the 
service area pursuant to Sec. 54.315 of this subpart. A competitive 
eligible telecommunications carrier serving loops in the service area of 
a non-rural incumbent local exchange carrier shall receive support for 
each line it serves in a particular wire center based on the support the 
incumbent LEC would receive for each such line. A competitive eligible 
telecommunications carrier serving loops in the service area of a rate-
of-return carrier shall be eligible to receive Interstate Common Line 
Support for each line it serves in the service area in accordance with 
the formula in Sec. 54.901.
    (2) A competitive eligible telecommunications carrier that uses 
switching purchased as unbundled network elements pursuant to Sec. 
51.307 of this chapter to provide the supported services shall receive 
the lesser of the unbundled network element price for switching or the 
per-line DEM support of the incumbent LEC, if any. A competitive 
eligible telecommunications carrier that uses loops purchased as 
unbundled network elements pursuant to Sec. 51.307 of this chapter to 
provide the supported services shall receive the lesser of the unbundled 
network element price for the loop or the incumbent LEC's per-line 
payment from the high-cost loop support, LTS, and Interstate Common Line 
Support mechanisms, if any. The incumbent LEC providing 
nondiscriminatory access to unbundled network elements to such 
competitive eligible telecommunications carrier shall receive the 
difference between the level of universal service support provided to 
the competitive eligible telecommunications carrier and the per-customer 
level of support that the incumbent LEC would have received.
    (3) A competitive eligible telecommunications carrier that provides 
the supported services using neither unbundled network elements 
purchased pursuant to Sec. 51.307 of this chapter nor wholesale service 
purchased pursuant to section 251(c)(4) of the Act will receive the full 
amount of universal service support that the incumbent LEC would have 
received for that customer.
    (b) In order to receive support pursuant to this subpart, a 
competitive eligible telecommunications carrier must report to the 
Administrator the number of working loops it serves in a service area 
pursuant to the schedule set forth in paragraph (c) of this section. For 
a competitive eligible telecommunications carrier serving loops in the 
service area of a rural incumbent local exchange carrier, as that term 
is defined in Sec. 54.5, the carrier must report, by customer class, 
the number of working loops it serves in the service area, disaggregated 
by cost zone if disaggregation zones have been established within the 
service area pursuant to Sec. 54.315. For a competitive eligible 
telecommunications carrier serving loops in the service area of a non-
rural telephone company, the carrier 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

[[Page 136]]

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 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;

[[Page 137]]

    (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 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.

[[Page 138]]

    (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]



Sec. 54.309  Calculation and distribution of forward-looking support for non-

rural carriers.

    (a) Calculation of total support available per state. Beginning 
January 1, 2000, non-rural incumbent local exchange carriers, and 
eligible telecommunications carriers serving lines in the service areas 
of non-rural incumbent local exchange carriers, shall receive universal 
service support for the forward-looking economic costs of providing 
supported services in high-cost areas, provided that the State in which 
the lines served by the carrier are located has complied with the 
certification requirements in Sec. 54.313. The total amount of forward-
looking support available in each State shall be determined according to 
the following methodology:
    (1) For each State, the Commission's cost model shall determine the 
statewide average forward-looking economic cost (FLEC) per line of 
providing the supported services. The statewide average FLEC per line 
shall equal the total FLEC for non-rural carriers to provide the 
supported services in the State, divided by the number of switched lines 
used in the Commission's cost model. The total FLEC shall equal average 
FLEC multiplied by the number of switched lines used in the Commission's 
cost model.
    (2) The Commission's cost model shall determine the national average 
FLEC per line of providing the supported services. The national average 
FLEC per line shall equal the total FLEC for non-rural carriers to 
provide the supported services in all States, divided by the total 
number of switched lines in all States used in the Commission's cost 
model.
    (3) The national cost benchmark shall equal two weighted standard 
deviations above the national average FLEC per line.

[[Page 139]]

    (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, 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.

[[Page 140]]

    (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 in 2012. From January 1, 2012, to December 
31, 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 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

[[Page 141]]

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. If a carrier intends to deploy to census blocks not 
initially identified at the time of election, it must inform the 
Commission, the Administrator, relevant state commissions, and any 
affected Tribal government of the change at least 90 days prior to 
commencing deployment in the new census blocks. No sooner than 46 days 
after the Wireline Competition Bureau issues a public notice announcing 
the updated deployment plans but prior to commencing deployment, the 
carrier must make the certifications described in this paragraph with 
respect to the new census blocks. If a carrier no longer intends to 
deploy to a previously identified census block, it must inform the 
Commission, the Administrator, relevant state commission, and any 
affected Tribal government prior to filing its certification pursuant to 
Sec. 54.313(b)(2).
    (c) Incremental Support in 2013. From January 1, 2013, to December 
31, 2013, 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 cost for each wire center using a simplified cost-
estimation function derived from the Commission's high-cost proxy 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, shown 
as unserved by fixed Internet access with speeds of at least 768 kbps 
downstream and 200 kbps upstream on the then-current version of the 
National Broadband Map, equal to the amount of incremental support it 
accepts divided by $775.
    (3) An eligible telecommunications carrier must accept funding 
pursuant to paragraph (c)(2) of this section before it may accept 
funding pursuant to paragraph (c)(3) of this section. If an eligible 
telecommunications carrier has committed to deploy to all locations 
eligible for support under paragraph (c)(2) of this section on routes or 
projects that can economically be built with $775 in Connect America 
funding for each location unserved by 768 kbps downstream and 200 kbps 
upstream plus an equal amount of non-Connect America carrier capital 
expenditure funding, but the carrier has not fully utilized its allotted 
funding, it may also count towards its deployment obligation locations 
shown as unserved by fixed Internet access with speeds of at least 3 
Mbps downstream and 768 kbps upstream equal to the amount of remaining 
incremental support divided by $550.
    (4) 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, the Administrator, relevant state commissions, and any 
affected Tribal government, stating the amount of incremental support it 
wishes to accept, the number of locations at the $775 amount, the number 
of locations at the $550 amount, 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 75 days of being notified of any 
incremental support for which it would be eligible. If a carrier intends 
to deploy to census blocks not initially identified at the time of 
election, it must inform the Commission, the Administrator, relevant 
state commissions, and any affected Tribal government of the change at 
least 90 days prior to commencing deployment in the new census blocks. 
No sooner than 46 days after the Wireline Competition Bureau issues a 
public notice announcing the updated deployment plans but prior to 
commencing deployment, the carrier

[[Page 142]]

must make the certifications described in paragraph (c)(5) of this 
section with respect to the new census blocks. If a carrier no longer 
intends to deploy to a previously identified census block, it must 
inform the Commission, the Administrator, relevant state commission, and 
any affected Tribal government prior to filing its certification 
pursuant to Sec. 54.313(b)(2).
    (5) Along with its notification, an eligible telecommunications 
carrier accepting incremental support must submit the following 
certifications:
    (i) The locations to be served to satisfy the deployment obligation 
are not shown as served by fixed broadband at the speeds specified in 
paragraph (c)(2) or (c)(3) of this section provided by any entity other 
than the certifying entity or its affiliate on the then-current version 
of the National Broadband Map or that it is challenging the National 
Broadband Map's designation of that census block under the challenge 
process in paragraph (c)(7) of this section;
    (ii) To the best of the carrier's knowledge, the locations are, in 
fact, unserved by fixed Internet access with speeds of at least 3 Mbps 
downstream and 768 kbps upstream, or 768 kbps downstream and 200 kbps 
upstream, as appropriate;
    (iii) 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;
    (iv) Incremental support will not be used to satisfy any merger 
commitment or similar regulatory obligation; and
    (v) The carrier has undertaken due diligence to determine the 
locations in question are not within the service area of either 
Broadband Initiatives Program or the Broadband Technology Opportunities 
Program projects that will provide Internet access with speeds of at 
least 3 Mbps downstream and 768 upstream.
    (6) An eligible telecommunications carrier deploying to locations 
unserved by 3 Mbps downstream and 768 kbps upstream under paragraph 
(c)(3) of this section must also certify that it has prioritized its 
planned projects or routes so as to maximize the deployment of 
broadband-capable infrastructure to locations lacking Internet access 
with speeds of 768 kbps downstream and 200 kbps upstream.
    (7) A person may challenge the designation of a census block as 
served or unserved by a certain speed as shown on the National Broadband 
Map. When the Wireline Competition Bureau determines that the evidence 
presented makes it more likely than not that the census block should be 
designated as served by broadband with speeds of at least 3 Mbps 
downstream and 768 kbps upstream, that locations in that census block 
will be treated as served by broadband and therefore ineligible to be 
counted for the purposes of paragraph (c)(3) of this section. When the 
Wireline Competition Bureau determines that the evidence presented makes 
it more likely than not that the census block should be designated as 
served by Internet service with speeds of 768 kbps downstream and 200 
kbps upstream, but unserved by broadband with speeds of at least 3 Mbps 
downstream and 768 kbps upstream, locations in that census block will be 
treated as served by Internet access with speeds of 768 kbps downstream 
and 200 kbps upstream and therefore eligible to be counted for the 
purposes of paragraph (c)(3) of this section. When the Wireline 
Competition Bureau determines that the evidence presented makes it more 
likely than not that the census block should be designated as unserved 
by Internet service with speeds of 768 kbps downstream and 200 kbps 
upstream, locations in that census block will be treated as unserved by 
Internet access with speeds of 768 kbps downstream and 200 kbps upstream 
and therefore eligible to be counted for the purposes of paragraph 
(c)(2) of this section.
    (8) If no entity other than the carrier or its affiliate provides 
Internet service with speeds of 3 Mbps downstream and 768 kbps upstream 
or greater as shown on the National Broadband Map or as determined by 
the process described in paragraph (c)(7), the carrier may satisfy its 
deployment obligations at a location shown by the National Broadband Map 
as being served by that carrier or its affiliate with such service by 
certifying that it is the only entity providing such service, that the 
location does not actually receive speeds of 3 Mbps downstream and 768 
kbps upstream, and the location is served through a copper-fed digital 
subscriber line access multiplexer. The carrier must specifically 
identify such locations in its election. Such locations will be treated 
the same as locations under paragraph (c)(3) of this section.
    (9) An eligible telecommunications carrier must complete deployment 
of broadband-capable infrastructure 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 allowances, if 
any, associated with a specified price for a service offering

[[Page 143]]

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; 78 
FR 38233, June 26, 2013; 78 FR 48624, Aug. 9, 2013]

    Effective Date Note: At 78 FR 48624, Aug. 9, 2013, Sec. 54.312 was 
amended by revising paragraphs (b)(3) and (c)(4). These paragraph 
contain information collection and recordkeeping requirements and will 
not become effective until approval has been given by the Office of 
Management and Budget.



Sec. 54.313  Annual reporting requirements for high-cost recipients.

    (a) Any recipient of high-cost support shall provide the following, 
with the information and data required by paragraphs (a)(1) through (7) 
of this section separately broken out for both voice service and 
broadband service:
    (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).
    (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 July 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

[[Page 144]]

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.
    (b) In addition to the information and certifications in paragraph 
(a) of this section:

    (1) Any recipient of incremental Connect America Phase I support 
pursuant to Sec. 54.312(b) and (c) shall provide:
    (i) In its next annual report due after two years after filing a 
notice of acceptance of funding pursuant to Sec. 54.312(b) and (c), a 
certification that the company has deployed to no fewer than two-thirds 
of the required number of locations; and
    (ii) In its next annual report due after three years after filing a 
notice of acceptance of funding pursuant to Sec. 54.312(b) and (c), a 
certification that the company has deployed to all required locations 
and that it is offering broadband service 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 allowances, if any, associated with a specified price for a 
service offering that are reasonably comparable to comparable offerings 
in urban areas.
    (2) In addition to the information and certifications required in 
paragraph (b)(1) of this section, any recipient of incremental Connect 
America Phase I support pursuant to Sec. 54.312(c) shall provide:
    (i) In its annual reports due after one, two, and three years after 
filing a notice of acceptance of funding pursuant to Sec. 54.312(c), a 
certification that, to the best of the recipient's knowledge, the 
locations in question are not receiving support under the Broadband 
Initiatives Program or the Broadband Technology Opportunities Program 
for projects that will provide broadband with speeds of at least 4 Mbps/
1 Mbps; and
    (ii) In its annual reports due after one, two, and three years after 
filing a notice of acceptance of funding pursuant to Sec. 54.312(c), a 
statement of the total amount of capital funding expended in the 
previous year in meeting Connect America Phase I deployment obligations, 
accompanied by a list of census blocks indicating where funding was 
spent.
    (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-

[[Page 145]]

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 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.
    (i) Recipients of loans from the Rural Utility Service (RUS) shall 
provide copies of their RUS Operating Report for Telecommunications 
Borrowers as filed with the RUS. Such carriers must make their 
underlying audit and related workpapers and financial information 
available upon request by the Commission, USAC, or the relevant state 
commission, relevant authority in a U.S. Territory, or Tribal 
government, as appropriate.
    (ii) All privately held rate-of-return carriers that are not 
recipients of loans from the RUS and whose financial statements are 
audited in the ordinary course of business must provide either: A copy 
of their audited financial statement; or a financial report in a format 
comparable to RUS Operating Report for Telecommunications Borrowers, 
accompanied by a copy of a management letter issued by the independent 
certified public accountant that performed the company's financial 
audit. A carrier choosing the latter option must make its audit and 
related workpapers and financial information available upon request by 
the Commission, USAC, or the relevant state commission, relevant 
authority in a U.S.

[[Page 146]]

Territory, or Tribal government, as appropriate.
    (iii) All other privately held rate-of-return carriers must provide 
either: A copy of their financial statement which has been subject to 
review by an independent certified public accountant; or a financial 
report in a format comparable to RUS Operating Report for 
Telecommunications Borrowers, with the underlying information subjected 
to a review by an independent certified public accountant and 
accompanied by an officer certification that: The carrier was not 
audited in the ordinary course of business for the preceding fiscal 
year; and that the reported data are accurate. If the carrier elects the 
second option, it must make the review and related workpapers and 
financial information available upon request by the Commission, USAC, or 
the relevant state commission, relevant authority in a U.S. Territory, 
or Tribal government, as appropriate.
    (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.
    (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.

[[Page 147]]

    (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; 78 FR 3843, Jan. 17, 2013; 78 FR 22201, Apr. 15, 
2013; 78 FR 29656, May 21, 2013; 78 FR 38233. June 26, 2013]

    Effective Date Notes: 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.



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. 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:

[[Page 148]]

    (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.
    (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

[[Page 149]]

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]



      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

[[Page 150]]

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 
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:

[[Page 151]]

    (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 $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

[[Page 152]]

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 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

[[Page 153]]

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 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.

[[Page 154]]

    (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 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

[[Page 155]]

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 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.

[[Page 156]]

    (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 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

[[Page 157]]

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. An eligible telecommunications carrier may 
not provide a consumer with an activated device that it represents 
enables use of Lifeline-supported service, nor may it activate service 
that it represents to be Lifeline service, unless and until it has:
    (1) Confirmed that the consumer is a qualifying low-income consumer 
pursuant to Sec. 54.409, and;
    (2) Completed the eligibility determination and certification 
required by this section and Sec. Sec. 54.404 through 54.405, and 
completed any other necessary enrollment steps.
    (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 158]]

    (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 159]]

    (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 160]]

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; 78 
FR 40970, July 9, 2013]



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 161]]

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 162]]



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 163]]

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 164]]

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 165]]

    (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 166]]

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 167]]

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 168]]

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 169]]

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 170]]

(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 171]]

    (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 172]]

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 173]]

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 174]]

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 175]]

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 176]]

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 177]]

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 178]]

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 179]]

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 180]]



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 181]]

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 182]]

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 183]]

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

[[Page 184]]

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

                      Defined Terms and Eligibility



Sec. 54.600  Terms and definitions.

    As used in this subpart, the following terms shall be defined as 
follows:
    (a) Health care provider. A ``health care provider'' is any:
    (1) Post-secondary educational institution offering health care 
instruction, including a teaching hospital or medical school;
    (2) Community health center or health center providing health care 
to migrants;
    (3) Local health department or agency;
    (4) Community mental health center;
    (5) Not-for-profit hospital;
    (6) Rural health clinic; or
    (7) Consortium of health care providers consisting of one or more 
entities described in paragraphs (a)(1) through (a)(6) of this section.

[[Page 185]]

    (b) Rural area. (1) 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. For purposes of 
this rule, ``Core Based Statistical Area,'' ``Urban Area,'' and 
``Place'' are as identified by the Census Bureau.
    (2) Notwithstanding the definition of ``rural area,'' 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.
    (c) Rural health care provider. A ``rural health care provider'' is 
an eligible health care provider site located in a rural area.

[78 FR 13982, Mar. 1, 2013]



Sec. 54.601  Health care provider eligibility.

    (a) Eligible health care providers. (1) Only an entity that is 
either a public or non-profit health care provider, as defined in this 
subpart, shall be eligible to receive support under this subpart.
    (2) 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) Determination of health care provider eligibility for the 
Healthcare Connect Fund. Health care providers in the Healthcare Connect 
Fund may certify to the eligibility of particular sites at any time 
prior to, or concurrently with, filing a request for services to 
initiate competitive bidding for the site. Applicants who utilize a 
competitive bidding exemption must provide eligibility information for 
the site to the Administrator prior to, or concurrently with, filing a 
request for funding for the site. Health care providers must also notify 
the Administrator within 30 days of a change in the health care 
provider's name, site location, contact information, or eligible entity 
type.

[78 FR 13982, Mar. 1, 2013]



Sec. 54.602  Health care support mechanism.

    (a) Telecommunications Program. Rural health care providers may 
request support for the difference, if any, between the urban and rural 
rates for telecommunications services, subject to the provisions and 
limitations set forth in Sec. Sec. 54.600 through 54.625 and Sec. Sec. 
54.671 through 54.680. This support is referred to as the 
``Telecommunications Program.''
    (b) Healthcare Connect Fund. Eligible health care providers may 
request support for eligible services, equipment, and infrastructure, 
subject to the provisions and limitations set forth in Sec. Sec. 54.600 
through 54.602 and Sec. Sec. 54.630 through 54.680. This support is 
referred to as the ``Healthcare Connect Fund.''
    (c) Allocation of discounts. An eligible health care provider that 
engages in both eligible and ineligible activities or that collocates 
with an ineligible entity shall allocate eligible and ineligible 
activities in order to receive prorated support for the eligible 
activities only. 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.
    (d) Health care purposes. Services for which eligible health care 
providers receive support from the Telecommunications Program or the 
Healthcare Connect Fund must be 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.

[78 FR 13982, Mar. 1, 2013]

                       Telecommunications Program



Sec. 54.603  Competitive bidding and certification requirements.

    (a) Competitive bidding requirement. To select the 
telecommunications carriers that will provide services eligible for 
universal service support to it under the Telecommunications Program, 
each eligible health care provider shall

[[Page 186]]

participate in a competitive bidding process pursuant to the 
requirements established in this section and any additional and 
applicable state, Tribal, 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 the Telecommunications Program shall submit a 
completed FCC Form 465 to the Administrator. FCC Form 465 shall be 
signed by the person authorized to order telecommunications services for 
the health care provider and shall include, at a minimum, that person's 
certification under oath that:
    (i) The requester is a public or non-profit entity that falls within 
one of the seven categories set forth in the definition of health care 
provider, listed in Sec. 54.600(a);
    (ii) The requester is physically located in a rural area;
    (iii) [Reserved]
    (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; 78 FR 13983, Mar. 1, 
2013]



Sec. 54.604  Consortia, telecommunications services, and existing contracts.

    (a) Consortia. (1) Under the Telecommunications Program, 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 of this part; 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 the 
Telecommunications

[[Page 187]]

Program shall apply only to the portion of eligible services used by an 
eligible health care provider.
    (b) Telecommunications Services. 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).
    (c) Existing contracts. A signed contract for services eligible for 
Telecommunications Program support pursuant to this subpart between an 
eligible health care provider as defined under Sec. 54.600 and a 
telecommunications carrier shall be exempt from the competitive bid 
requirements set forth in Sec. 54.603(a) as follows:
    (1) A contract signed on or before July 10, 1997 is exempt from the 
competitive bid requirement for the life of the contract.
    (2) [Reserved]
    (d) For rural health care providers that take service under or 
pursuant to a master contract, as defined in Sec. 54.500(f), the date 
of execution of that master contract represents the applicable date for 
purposes of determining whether and to what extent the rural health care 
provider is exempt from the competitive bid requirements.
    (e) The competitive bid system will be deemed to be operational when 
the Administrator is ready to accept and post FCC Form 465 from rural 
health care providers on a website and that website is available for use 
by telecommunications carriers.

[63 FR 2131, Jan. 13, 1998; 63 FR 33586, June 19, 1998, as amended at 63 
FR 70572, Dec. 21, 1998; 64 FR 22810, Apr. 28, 1999; 71 FR 65750, Nov. 
9, 2006; 78 FR 13983, Mar. 1, 2013]



Sec. 54.605  Determining the urban rate.

    (a) If a rural health care provider requests support for an eligible 
service to be funded from the Telecommunications Program that is to be 
provided over a distance that is less than or equal to the ``standard 
urban distance,'' as defined in paragraph (c) of this section, for the 
state in which it is located, the ``urban rate'' for that service shall 
be a rate no higher than the highest tariffed or publicly-available rate 
charged to a commercial customer for a functionally similar service in 
any city with a population of 50,000 or more in that state, calculated 
as if it were provided between two points within the city.
    (b) If a rural health care provider requests an eligible service to 
be provided over a distance that is greater than the ``standard urban 
distance,'' as defined in paragraph (c) of this section, for the state 
in which it is located, the urban rate for that service shall be a rate 
no higher than the highest tariffed or publicly-available rate charged 
to a commercial customer for a functionally similar service provided 
over the standard urban distance in any city with a population of 50,000 
or more in that state, calculated as if the service were provided 
between two points within the city.
    (c) The ``standard urban distance'' for a state is the average of 
the longest diameters of all cities with a population of 50,000 or more 
within the state.
    (d) The Administrator shall calculate the ``standard urban 
distance'' and shall post the ``standard urban distance'' and the 
maximum supported distance for each state on its website.

[62 FR 32948, June 17, 1997, as amended at 63 FR 2131, Jan. 13, 1998; 63 
FR 70572, Dec. 21, 1998; 68 FR 74502, Dec. 24, 2003; 78 FR 13983, Mar. 
1, 2013]



Sec. 54.607  Determining the rural rate.

    (a) The rural rate shall be the average of the rates actually being 
charged to commercial customers, other than health care providers, for 
identical or similar services provided by the telecommunications carrier 
providing the service in the rural area in which the health care 
provider is located. The rates included in this average shall be for 
services provided over the same distance as the eligible service. The 
rates averaged to calculate the rural rate must not include any rates 
reduced by universal service support mechanisms. The ``rural rate'' 
shall be used as described in this subpart to determine the credit or 
reimbursement due to a

[[Page 188]]

telecommunications carrier that provides eligible telecommunications 
services to eligible health care providers.
    (b) If the telecommunications carrier serving the health care 
provider is not providing any identical or similar services in the rural 
area, then the rural rate shall be the average of the tariffed and other 
publicly available rates, not including any rates reduced by universal 
service programs, charged for the same or similar services in that rural 
area over the same distance as the eligible service by other carriers. 
If there are no tariffed or publicly available rates for such services 
in that rural area, or if the carrier reasonably determines that this 
method for calculating the rural rate is unfair, then the carrier shall 
submit for the state commission's approval, for intrastate rates, or the 
Commission's approval, for interstate rates, a cost-based rate for the 
provision of the service in the most economically efficient, reasonably 
available manner.
    (1) The carrier must provide, to the state commission, or intrastate 
rates, or to the Commission, for interstate rates, a justification of 
the proposed rural rate, including an itemization of the costs of 
providing the requested service.
    (2) The carrier must provide such information periodically 
thereafter as required, by the state commission for intrastate rates or 
the Commission for interstate rates. In doing so, the carrier must take 
into account anticipated and actual demand for telecommunications 
services by all customers who will use the facilities over which 
services are being provided to eligible health care providers.



Sec. 54.609  Calculating support.

    (a) The amount of universal service support provided for an eligible 
service to be funded from the Telecommunications Program shall be the 
difference, if any, between the urban rate and the rural rate charged 
for the service, as defined herein. In addition, all reasonable charges 
that are incurred by taking such services, such as state and federal 
taxes shall be eligible for universal service support. Charges for 
termination liability, penalty surcharges, and other charges not 
included in the cost of taking such service shall not be covered by the 
universal service support mechanisms. Under the Telecommunications 
Program, rural health care providers may choose one of the following two 
support options.
    (1) Distance based support. The Administrator shall consider the 
base rates for telecommunications services in rural areas to be 
reasonably comparable to the base rates charged for functionally similar 
telecommunications service in urban areas in that state, and, therefore, 
the Administrator shall not include these charges in calculating the 
support. The Administrator shall include, in the support calculation, 
all other charges specified, and all actual distance-based charges as 
follows:
    (i) If the requested service distance is less than or equal to the 
SUD for the state, the distance-based charges for the rural health care 
provider are reasonably comparable to those in urban areas, so the 
health care provider will not receive distance-based support.
    (ii) If the requested service distance is greater than the SUD for 
the state, but less than the maximum allowable distance, the distance-
based charge actually incurred for that service can be no higher than 
the distance-based charges for a functionally similar service in any 
city in that state with a population of 50,000 or more over the SUD.
    (iii) ``Distance-based charges'' are charges based on a unit of 
distance, such as mileage-based charges.
    (iv) A telecommunications carrier that provides telecommunications 
service to a rural health care provider participating in an eligible 
health care consortium, and the consortium must establish the actual 
distance-based charges for the health care provider's portion of the 
shared telecommunications services.
    (2) Base rate support. If a telecommunications carrier, health care 
provider, and/or consortium of health care providers reasonably 
determines that the base rates for telecommunications services in rural 
areas are not reasonably comparable to the base rates charged for 
functionally similar telecommunications service in urban

[[Page 189]]

areas in that state, the telecommunications carrier, health care 
provider, and/or consortium of health care providers may request that 
the Administrator perform a more comprehensive support calculation. The 
requester shall provide to the Administrator the information to 
establish both the urban and rural rates consistent with Sec. 54.605 
and Sec. 54.607, and submit to the Administrator with Form 466 all of 
the documentation necessary to substantiate the request.
    (3) Base rate support-consortium. A telecommunications carrier that 
provides telecommunications service to a rural health care provider 
participating in an eligible health care consortium, and the consortium 
must establish the applicable rural base rates for telecommunications 
service for the health care provider's portion of the shared 
telecommunications services, as well as the applicable urban base rates 
for the telecommunications service.
    (b) Absent documentation justifying the amount of universal service 
support requested for health care providers participating in a 
consortium, the Administrator shall not allow telecommunications 
carriers to offset, or receive reimbursement for, the amount eligible 
for universal service support.
    (c) The universal service support mechanisms shall provide support 
for intrastate telecommunications services, as set forth in Sec. 
54.101(a), provided to rural health care providers as well as interstate 
telecommunications services.
    (d) Satellite services.(1) Rural public and non-profit health care 
providers may receive support for rural satellite services under the 
Telecommunications Program, even when another functionally similar 
terrestrial-based service is available in that rural area. Support for 
satellite services shall be capped at the amount the rural health care 
provider would have received if they purchased a functionally similar 
terrestrial-based alternative.
    (2) Rural health care providers seeking support from the 
Telecommunications Program for satellite services shall provide to the 
Administrator with the Form 466, documentation of the urban and rural 
rates for the terrestrial-based alternatives.
    (3) Where a rural health care provider seeks a more expensive 
satellite-based service when a less expensive terrestrial-based 
alternative is available, the rural health care provider shall be 
responsible for the additional cost.
    (e) Mobile rural health care providers-- (1) Calculation of support. 
The support amount allowed under the Telecommunications Program for 
satellite services provided to mobile rural health care providers is 
calculated by comparing the rate for the satellite service to the rate 
for an urban wireline service with a similar bandwidth. Support for 
satellite services shall not be capped at an amount of a functionally 
similar wireline alternative. Where the mobile rural health care 
provider provides service in more than one state, the calculation shall 
be based on the urban areas in each state, proportional to the number of 
locations served in each state.
    (2) Documentation of support. (i) Mobile rural health care providers 
shall provide to the Administrator documentation of the price of 
bandwidth equivalent wireline services in the urban area in the state or 
states where the service is provided. Mobile rural health care providers 
shall provide to the Administrator the number of sites the mobile health 
care provider will serve during the funding year.
    (ii) Where a mobile rural health care provider serves less than 
eight different sites per year, the mobile rural health care provider 
shall provide to the Administrator documentation of the price of 
bandwidth equivalent wireline services. In such case, the Administrator 
shall determine on a case-by-case basis whether the telecommunications 
service selected by the mobile rural health care provider is the most 
cost-effective option. Where a mobile rural health care provider seeks a 
more expensive satellite-based service when a less expensive wireline 
alternative is most cost-effective, the mobile rural health care 
provider shall be responsible for the additional cost.

[68 FR 74502, Dec. 24, 2003, as amended at 70 FR 6373, Feb. 7, 2005; 78 
FR 13983, Mar. 1, 2013]

[[Page 190]]



Sec. 54.613  Limitations on supported services for rural health care 

providers.

    (a) Upon submitting a bona fide request to a telecommunications 
carrier, each eligible rural health care provider is entitled to receive 
the most cost-effective, commercially-available telecommunications 
service at a rate no higher than the highest urban rate, as defined in 
Sec. 54.605, at a distance not to exceed the distance between the 
eligible health care provider's site and the farthest point on the 
jurisdictional boundary of the city in that state with the largest 
population.
    (b) [Reserved]

[64 FR 66787, Nov. 30, 1999, as amended at 68 FR 74503, Dec. 24, 2003; 
78 FR 13984, Mar. 1, 2013]



Sec. 54.615  Obtaining services.

    (a) Selecting a provider. In selecting a telecommunications carrier, 
a health care provider shall consider all bids submitted and select the 
most cost-effective alternative.
    (b) Receiving supported rate. Upon receiving a bona fide request, as 
defined in paragraph (c) of this section, from a rural health care 
provider for a telecommunications service that is eligible for support 
under the Telecommunications Program, a telecommunications carrier shall 
provide the service at a rate no higher than the urban rate, as defined 
in Sec. 54.605, subject to the limitations applicable to the 
Telecommunications Program.
    (c) Bona fide request. In order to receive services eligible for 
support under the Telecommunications Program, an eligible health care 
provider must submit a request for services to the telecommunications 
carrier, signed by an authorized officer of the health care provider, 
and shall include that person's certification under oath that:
    (1) The requester is a public or non-profit entity that falls within 
one of the seven categories set forth in the definition of health care 
provider, listed in Sec. 54.601(a);
    (2) The requester is physically located in a rural area, or if the 
requester is a mobile rural health care provider requesting services 
under Sec. 54.609(e), that the requester has certified that it is 
serving eligible rural areas;
    (3) [Reserved]
    (4) The requested service or services will be used solely for 
purposes reasonably related to the provision of health care services or 
instruction that the health care provider is legally authorized to 
provide under the law in the state in which such health care services or 
instruction are provided;
    (5) The requested service or services will not be sold, resold or 
transferred in consideration of money or any other thing of value;
    (6) If the service or services are being purchased as part of an 
aggregated purchase with other entities or individuals, the full details 
of any such arrangement, including the identities of all co-purchasers 
and the portion of the service or services being purchased by the health 
care provider; and
    (7) The requester is selecting the most cost-effective method of 
providing the requested service or services, where the most cost-
effective method of providing a service is defined as the method that 
costs the least after consideration of the features, quality of 
transmission, reliability, and other factors that the health care 
provider deems relevant to choosing a method of providing the required 
health care services.
    (d) Annual renewal. The certification set forth in paragraph (c) of 
this section shall be renewed annually.

[62 FR 32948, June 17, 1997, as amended at 70 FR 6373, Feb. 7, 2005; 78 
FR 13984, Mar. 1, 2013]



Sec. 54.619  Audits and recordkeeping.

    (a) Health care providers. (1) Health care providers shall maintain 
for their purchases of services supported under the Telecommunications 
Program documentation for five years from the end of the funding year 
sufficient to establish compliance with all rules in this subpart. 
Documentation must include, among other things, records of allocations 
for consortia and entities that engage in eligible and ineligible 
activities, if applicable. Mobile rural health care providers shall 
maintain annual logs indicating: The date and locations of each clinic 
stop; and the number of patients served at each such clinic stop.

[[Page 191]]

    (2) Mobile rural health care providers shall maintain its annual 
logs for a period of five years. Mobile rural health care providers 
shall make its logs available to the Administrator and the Commission 
upon request.
    (b) Production of records. Health care providers shall produce such 
records at the request of any auditor appointed by the Administrator or 
any other state or federal agency with jurisdiction.
    (c) Random audits. Health care providers shall be subject to random 
compliance audits to ensure that requesters are complying with the 
certification requirements set forth in Sec. 54.615(c) and are 
otherwise eligible to receive universal service support and that rates 
charged comply with the statute and regulations.
    (d) Service providers. Service providers shall retain documents 
related to the delivery of discounted services under the 
Telecommunications Program for at least 5 years after the last day of 
the delivery of discounted services. Any other document that 
demonstrates compliance with the statutory or regulatory requirements 
for the rural health care mechanism shall be retained as well.

[68 FR 74503, Dec. 24, 2003, as amended at 69 FR 12087, Mar. 15, 2004; 
70 FR 6373, Feb. 7, 2005; 71 FR 13281, Mar. 15, 2006; 72 FR 54218, Sept. 
24, 2007; 78 FR 13984, Mar. 1, 2013]



Sec. 54.623  Annual filing and funding commitment requirement.

    (a) Annual filing requirement. Health care providers seeking support 
under the Telecommunications Program shall file new funding requests for 
each funding year.
    (b) Long term contracts. Under the Telecommunications Program, if 
health care providers enter into long term contracts for eligible 
services, the Administrator shall only commit funds to cover the portion 
of such a long term contract scheduled to be delivered during the 
funding year for which universal service support is sought.

[78 FR 13984, Mar. 1, 2013]



Sec. 54.625  Support for telecommunications services beyond the maximum 

supported distance for rural health care providers.

    (a) The maximum support distance for the Telecommunications Program 
is the distance from the health care provider to the farthest point on 
the jurisdictional boundary of the city in that state with the largest 
population, as calculated by the Administrator.
    (b) An eligible rural health care provider may purchase an eligible 
telecommunications service supported under the Telecommunications 
Program that is provided over a distance that exceeds the maximum 
supported distance.
    (c) If an eligible rural health care provider purchases an eligible 
telecommunications service supported under the Telecommunications 
Program that exceeds the maximum supported distance, the health care 
provider must pay the applicable rural rate for the distance that such 
service is carried beyond the maximum supported distance.

[78 FR 13984, Mar. 1, 2013]

                         Healthcare Connect Fund



Sec. 54.630  Eligible recipients.

    (a) Rural health care provider site--individual and consortium. 
Under the Healthcare Connect Fund, an eligible rural health care 
provider may receive universal service support by applying individually 
or through a consortium. For purposes of the Healthcare Connect Fund, a 
``consortium'' is a group of two or more health care provider sites that 
request support through a single application. Consortia may include 
health care providers who are not eligible for support under the 
Healthcare Connect Fund, but such health care providers cannot receive 
support for their expenses and must participate pursuant to the cost 
allocation guidelines in Sec. 54.639(d).
    (b) Limitation on participation of non-rural health care provider 
sites in a consortium. An eligible non-rural health care provider site 
may receive universal service support only as part of a consortium that 
includes more than 50 percent eligible rural health care provider sites.

[[Page 192]]

    (c) Limitation on large non-rural hospitals. Each eligible non-rural 
public or non-profit hospital site with 400 or more licensed patient 
beds may receive no more than $30,000 per year in Healthcare Connect 
Fund support for eligible recurring charges and no more than $70,000 in 
Healthcare Connect Fund support every 5 years for eligible nonrecurring 
charges, exclusive in both cases of costs shared by the network.

[78 FR 13984, Mar. 1, 2013]



Sec. 54.631  Designation of Consortium Leader.

    (a) Identifying a Consortium Leader. Each consortium seeking support 
from the Healthcare Connect Fund must identify an entity or organization 
that will be the lead entity (the ``Consortium Leader'').
    (b) Consortium Leader eligibility. The Consortium Leader may be the 
consortium itself (if it is a distinct legal entity); an eligible health 
care provider participating in the consortium; or a state organization, 
public sector (governmental) entity (including a Tribal government 
entity), or non-profit entity that is ineligible for Healthcare Connect 
Fund support. Ineligible state organizations, public sector entities, or 
non-profit entities may serve as Consortium Leaders or provide 
consulting assistance to consortia only if they do not participate as 
potential vendors during the competitive bidding process. An ineligible 
entity that serves as the Consortium Leader must pass on the full value 
of any discounts, funding, or other program benefits secured to the 
consortium members that are eligible health care providers.
    (c) Consortium Leader responsibilities. The Consortium Leader's 
responsibilities include the following:
    (1) Legal and financial responsibility for supported activities. The 
Consortium Leader is the legally and financially responsible entity for 
the activities supported by the Healthcare Connect Fund. By default, the 
Consortium Leader is the responsible entity if audits or other 
investigations by Administrator or the Commission reveal violations of 
the Act or Commission rules, with individual consortium members being 
jointly and severally liable if the Consortium Leader dissolves, files 
for bankruptcy, or otherwise fails to meet its obligations. Except for 
the responsibilities specifically described in paragraphs (c)(2) through 
(c)(6) of this section, consortia may allocate legal and financial 
responsibility as they see fit, provided that this allocation is 
memorialized in a formal written agreement between the affected parties 
(i.e., the Consortium Leader, and the consortium as a whole and/or its 
individual members), and the written agreement is submitted to the 
Administrator for approval with or prior to the Request for Services. 
Any such agreement must clearly identify the party(ies) responsible for 
repayment if the Administrator is required, at a later date, to recover 
disbursements to the consortium due to violations of program rules.
    (2) Point of contact for the FCC and Administrator. The Consortium 
Leader is responsible for designating an individual who will be the 
``Project Coordinator'' and serve as the point of contact with the 
Commission and the Administrator for all matters related to the 
consortium. The Consortium Leader is responsible for responding to 
Commission and Administrator inquiries on behalf of the consortium 
members throughout the application, funding, invoicing, and post-
invoicing period.
    (3) Typical applicant functions, including forms and certifications. 
The Consortium Leader is responsible for submitting program forms and 
required documentation and ensuring that all information and 
certifications submitted are true and correct. The Consortium Leader 
must also collect and retain a Letter of Agency (LOA) from each member, 
pursuant to Sec. 54.632.
    (4) Competitive bidding and cost allocation. The Consortium Leader 
is responsible for ensuring that the competitive bidding process is fair 
and open and otherwise complies with Commission requirements. If costs 
are shared by both eligible and ineligible entities, the Consortium 
Leader must ensure that costs are allocated in a manner that ensures 
that only eligible entities receive the benefit of program discounts.
    (5) Invoicing. The Consortium Leader is responsible for notifying 
the Administrator when supported services have

[[Page 193]]

commenced and for submitting invoices to the Administrator.
    (6) Recordkeeping, site visits, and audits. The Consortium Leader is 
also responsible for compliance with the Commission's recordkeeping 
requirements and for coordinating site visits and audits for all 
consortium members.

[78 FR 13985, Mar. 1, 2013]



Sec. 54.632  Letters of agency (LOA).

    (a) Authorizations. Under the Healthcare Connect Fund, the 
Consortium Leader must obtain the following authorizations.
    (1) Prior to the submission of the request for services, the 
Consortium Leader must obtain authorization, the necessary 
certifications, and any supporting documentation from each consortium 
member to permit the Consortium Leader to submit the request for 
services and prepare and post the request for proposal on behalf of the 
member.
    (2) Prior to the submission of the funding request, the Consortium 
Leader must secure authorization, the necessary certifications, and any 
supporting documentation from each consortium member to permit the 
Consortium Leader to submit the funding request and manage invoicing and 
payments on behalf of the member.
    (b) Optional two-step process. The Consortium Leader may secure both 
required authorizations from each consortium member in either a single 
LOA or in two separate LOAs.
    (c) Required Information in LOA. (1) An LOA must include, at a 
minimum, the name of the entity filing the application (i.e., lead 
applicant or Consortium Leader); name of the entity authorizing the 
filing of the application (i.e., the participating health care provider/
consortium member); the physical location of the health care provider/
consortium member site(s); the relationship of each site seeking support 
to the lead entity filing the application; the specific timeframe the 
LOA covers; the signature, title and contact information (including 
phone number, mailing address, and email address) of an official who is 
authorized to act on behalf of the health care provider/consortium 
member; signature date; and the type of services covered by the LOA.
    (2) For HCPs located on Tribal lands, if the health care facility is 
a contract facility that is run solely by the tribe, the appropriate 
tribal leader, such as the tribal chairperson, president, or governor, 
shall also sign the LOA, unless the health care responsibilities have 
been duly delegated to another tribal government representative.

[78 FR 13985, Mar. 1, 2013]



Sec. 54.633  Health care provider contribution.

    (a) Health care provider contribution. All health care providers 
receiving support under the Healthcare Connect Fund shall receive a 65 
percent discount on the cost of eligible expenses and shall be required 
to contribute 35 percent of the total cost of all eligible expenses.
    (b) Limits on eligible sources of health care provider contribution. 
Only funds from eligible sources may be applied toward the health care 
provider's required contribution.
    (1) Eligible sources include the applicant or eligible health care 
provider participants; state grants, funding, or appropriations; federal 
funding, grants, loans, or appropriations except for other federal 
universal service funding; Tribal government funding; and other grant 
funding, including private grants.
    (2) Ineligible sources include (but are not limited to) in-kind or 
implied contributions from health care providers; direct payments from 
vendors or other service providers, including contractors and 
consultants to such entities; and for-profit entities.
    (c) Disclosure of health care provider contribution source. Prior to 
receiving support, applicants are required to identify with specificity 
their sources of funding for their contribution of eligible expenses.
    (d) Future revenues from excess capacity as source of health care 
provider contribution. A consortium applicant that receives support for 
participant-owned network facilities under Sec. 54.636 may use future 
revenues from excess capacity as a source for the required health care 
provider contribution, subject to the following limitations.

[[Page 194]]

    (1) The consortium's selection criteria and evaluation for ``cost-
effectiveness'' pursuant to Sec. 54.642 cannot provide a preference to 
bidders that offer to construct excess capacity.
    (2) The applicant must pay the full amount of the additional costs 
for excess capacity facilities that will not be part of the supported 
health care network.
    (3) The additional cost of constructing excess capacity facilities 
may not count toward a health care provider's required contribution.
    (4) The inclusion of excess capacity facilities cannot increase the 
funded cost of the dedicated health care network in any way.
    (5) An eligible health care provider (typically the consortium, 
although it may be an individual health care provider participating in 
the consortium) must retain ownership of the excess capacity facilities. 
It may make the facilities available to third parties only under an 
indefeasible right of use (IRU) or lease arrangement. The lease or IRU 
between the participant and the third party must be an arm's length 
transaction. To ensure that this is an arm's length transaction, neither 
the vendor that installs the excess capacity facilities nor its 
affiliate is eligible to enter into an IRU or lease with the 
participant.
    (6) Any amount prepaid for use of the excess capacity facilities 
(IRU or lease) must be placed in an escrow account. The participant can 
then use the escrow account as an eligible source of funds for the 
participant's 35 percent contribution to the project.
    (7) All revenues from use of the excess capacity facilities by the 
third party must be used for the health care provider contribution or 
for sustainability of the health care network supported by the 
Healthcare Connect Fund. Network costs that may be funded with any 
additional revenues that remain include administration, equipment, 
software, legal fees, or other costs not covered by the Healthcare 
Connect Fund, as long as they are relevant to sustaining the network.

[78 FR 13985, Mar. 1, 2013]



Sec. 54.634  Eligible services.

    (a) Eligible services. Subject to the provisions of Sec. Sec. 
54.600 through 54.602 and Sec. Sec. 54.630 through 54.680, eligible 
health care providers may request support from the Healthcare Connect 
Fund for any advanced telecommunications or information service that 
enables health care providers to post their own data, interact with 
stored data, generate new data, or communicate, by providing 
connectivity over private dedicated networks or the public Internet for 
the provision of health information technology.
    (b) Eligibility of dark fiber. A consortium of eligible health care 
providers may receive support for ``dark'' fiber where the customer, not 
the vendor, provides the modulating electronics, subject to the 
following limitations:
    (1) Support for recurring charges associated with dark fiber is only 
available once the dark fiber is ``lit'' and actually being used by the 
health care provider. Support for non-recurring charges for dark fiber 
is only available for fiber lit within the same funding year, but 
applicants may receive up to a one-year extension to light fiber if they 
provide documentation to the Administrator that construction was 
unavoidably delayed due to weather or other reasons.
    (2) Requests for proposals (RFPs) that solicit dark fiber solutions 
must also solicit proposals to provide the needed services over lit 
fiber over a time period comparable to the duration of the dark fiber 
lease or indefeasible right of use.
    (3) If an applicant intends to request support for equipment and 
maintenance costs associated with lighting and operating dark fiber, it 
must include such elements in the same RFP as the dark fiber so that the 
Administrator can review all costs associated with the fiber when 
determining whether the applicant chose the most cost-effective bid.
    (c) Dark and lit fiber maintenance costs. (1) Both individual and 
consortium applicants may receive support for recurring maintenance 
costs associated with leases of dark or lit fiber.
    (2) Consortium applicants may receive support for upfront payments 
for maintenance costs associated with

[[Page 195]]

leases of dark or lit fiber, subject to the limitations in Sec. 54.638.
    (d) Reasonable and customary installation charges. Eligible health 
care providers may obtain support for reasonable and customary 
installation charges for eligible services, up to an undiscounted cost 
of $5,000 per eligible site.
    (e) Upfront charges for vendor deployment of new or upgraded 
facilities. (1) Participants may obtain support for upfront charges for 
vendor deployment of new or upgraded facilities to serve eligible sites.
    (2) Support is available to extend vendor deployment of facilities 
up to the ``demarcation point,'' which is the boundary between 
facilities owned or controlled by the vendor, and facilities owned or 
controlled by the customer.

[78 FR 13986, Mar. 1, 2013]



Sec. 54.635  Eligible equipment.

    (a) Both individual and consortium applicants may receive support 
for network equipment necessary to make functional an eligible service 
that is supported under the Healthcare Connect Fund.
    (b) Consortium applicants may also receive support for network 
equipment necessary to manage, control, or maintain an eligible service 
or a dedicated health care broadband network. Support for network 
equipment is not available for networks that are not dedicated to health 
care.
    (c) Network equipment eligible for support includes the following:
    (1) Equipment that terminates a carrier's or other provider's 
transmission facility and any router/switch that is directly connected 
to either the facility or the terminating equipment. This includes 
equipment required to light dark fiber, or equipment necessary to 
connect dedicated health care broadband networks or individual health 
care providers to middle mile or backbone networks;
    (2) Computers, including servers, and related hardware (e.g. 
printers, scanners, laptops) that are used exclusively for network 
management;
    (3) Software used for network management, maintenance, or other 
network operations, and development of software that supports network 
management, maintenance, and other network operations;
    (4) Costs of engineering, furnishing (i.e. as delivered from the 
manufacturer), and installing network equipment; and
    (5) Equipment that is a necessary part of health care provider-owned 
network facilities.
    (d) Additional limitations: Support for network equipment is limited 
to equipment:
    (1) Purchased or leased by a Consortium Leader or eligible health 
care provider; and
    (2) Used for health care purposes.

[78 FR 13986, Mar. 1, 2013]



Sec. 54.636  Eligible participant-constructed and owned network facilities for 

consortium applicants.

    (a) Subject to the funding limitations under Sec. Sec. 54.675 and 
54.638 and the following restrictions, consortium applicants may receive 
support for network facilities that will be constructed and owned by the 
consortium (if the consortium is an eligible health care provider) or 
eligible health care providers within the consortium.
    (1) Consortia seeking support to construct and own network 
facilities are required to solicit bids for both:
    (i) Services provided over third-party networks; and
    (ii) Construction of participant-owned network facilities, in the 
same request for proposals. Requests for proposals must provide 
sufficient detail so that cost-effectiveness can be evaluated over the 
useful life of the proposed network facility to be constructed.
    (2) Support for participant-constructed and owned network facilities 
is only available where the consortium demonstrates that constructing 
its own network facilities is the most cost-effective option after 
competitive bidding, pursuant to Sec. 54.642.
    (b) [Reserved]

[78 FR 13987, Mar. 1, 2013]



Sec. 54.637  Off-site data centers and off-site administrative offices.

    (a) The connections and network equipment associated with off-site 
data centers and off-site administrative offices used by eligible health 
care providers for their health care purposes

[[Page 196]]

are eligible for support under the Healthcare Connect Fund, subject to 
the conditions and restrictions set forth in paragraph (b) of this 
section.
    (1) An ``off-site administrative office'' is a facility that does 
not provide hands-on delivery of patient care, but performs 
administrative support functions that are critical to the provision of 
clinical care by eligible health care providers.
    (2) An ``off-site data center'' is a facility that serves as a 
centralized repository for the storage, management, and dissemination of 
an eligible health care provider's computer systems, associated 
components, and data, including (but not limited to) electronic health 
records.
    (b) Conditions and Restrictions. The following conditions and 
restrictions apply to support provided under this sections.
    (1) Connections eligible for support are only those that are 
between:
    (i) Eligible health care provider sites and off-site data centers or 
off-site administrative offices,
    (ii) Two off-site data centers,
    (iii) Two off-site administrative offices,
    (iv) An off-site data center and the public Internet or another 
network,
    (v) An off-site administrative office and the public Internet or 
another network, or
    (vi) An off-site administrative office and an off-site data center.
    (2) The supported connections and network equipment must be used 
solely for health care purposes.
    (3) The supported connections and network equipment must be 
purchased by an eligible health care provider or a public or non-profit 
health care system that owns and operates eligible health care provider 
sites.
    (4) If traffic associated with one or more ineligible health care 
provider sites is carried by the supported connection and/or network 
equipment, the ineligible health care provider sites must allocate the 
cost of that connection and/or equipment between eligible and ineligible 
sites, consistent with the ``fair share'' principles set forth in Sec. 
54.639(d).

[78 FR 13987, Mar. 1, 2013]



Sec. 54.638  Upfront payments.

    (a) Upfront payments include all non-recurring costs for services, 
equipment, or facilities, other than reasonable and customary 
installation charges of up to $5,000.
    (b) The following limitations apply to all upfront payments:
    (1) Upfront payments associated with services providing a bandwidth 
of less than 1.5 Mbps (symmetrical) are not eligible for support.
    (2) Only consortium applicants are eligible for support for upfront 
payments.
    (c) The following limitations apply if a consortium makes a request 
for support for upfront payments that exceeds, on average, $50,000 per 
eligible site in the consortium:
    (1) The support for the upfront payments must be prorated over at 
least three years.
    (2) The upfront payments must be part of a multi-year contract.

[78 FR 13987, Mar. 1, 2013]



Sec. 54.639  Ineligible expenses.

    (a) Equipment or services not directly associated with eligible 
services. Expenses associated with equipment or services that are not 
necessary to make an eligible service functional, or to manage, control, 
or maintain an eligible service or a dedicated health care broadband 
network are ineligible for support.

    Note to paragraph (a): The following are examples of ineligible 
expenses:
    1. Costs associated with general computing, software, applications, 
and Internet content development are not supported, including the 
following:
    i. Computers, including servers, and related hardware (e.g., 
printers, scanners, laptops), unless used exclusively for network 
management, maintenance, or other network operations;
    ii. End user wireless devices, such as smartphones and tablets;
    iii. Software, unless used for network management, maintenance, or 
other network operations;
    iv. Software development (excluding development of software that 
supports network management, maintenance, and other network operations);
    v. Helpdesk equipment and related software, or services, unless used 
exclusively in support of eligible services or equipment;
    vi. Web server hosting;
    vii. Web site portal development;

[[Page 197]]

    viii. Video/audio/web conferencing equipment or services; and
    ix. Continuous power source.
    2. Costs associated with medical equipment (hardware and software), 
and other general health care provider expenses are not supported, 
including the following:
    i. Clinical or medical equipment;
    ii. Telemedicine equipment, applications, and software;
    iii. Training for use of telemedicine equipment;
    iv. Electronic medical records systems; and
    v. Electronic records management and expenses.

    (b) Inside wiring/internal connections. Expenses associated with 
inside wiring or internal connections are ineligible for support under 
the Healthcare Connect Fund.
    (c) Administrative expenses. Administrative expenses are not 
eligible for support under the Healthcare Connect Fund.

    Note to paragraph (c): Ineligible administrative expenses include, 
but not limited to, the following expenses:
    1. Personnel costs (including salaries and fringe benefits), except 
for personnel expenses in a consortium application that directly relate 
to designing, engineering, installing, constructing, and managing a 
dedicated broadband network. Ineligible costs of this category include, 
for example, personnel to perform program management and coordination, 
program administration, and marketing;
    2. Travel costs, except for travel costs that are reasonable and 
necessary for network design or deployment and that are specifically 
identified and justified as part of a competitive bid for a construction 
project;
    3. Legal costs;
    4. Training, except for basic training or instruction directly 
related to and required for broadband network installation and 
associated network operations;
    5. Program administration or technical coordination (e.g., preparing 
application materials, obtaining letters of agency, preparing request 
for proposals, negotiating with vendors, reviewing bids, and working 
with the Administrator) that involves anything other than the design, 
engineering, operations, installation, or construction of the network;
    6. Administration and marketing costs (e.g., administrative costs; 
supplies and materials, except as part of network installation/
construction; marketing studies, marketing activities, or outreach to 
potential network members; evaluation and feedback studies);
    7. Billing expenses (e.g., expense that vendors may charge for 
allocating costs to each health care provider in a network);
    8. Helpdesk expenses (e.g., equipment and related software, or 
services); and
    9. Technical support services that provide more than basic 
maintenance.

    (d) Cost allocation for ineligible sites, services, or equipment--
(1) Ineligible sites. Eligible health care provider sites may share 
expenses with ineligible sites, as long as the ineligible sites pay 
their fair share of the expenses. An applicant may seek support for only 
the portion of a shared eligible expense attributable to eligible health 
care provider sites. To receive support, the applicant must ensure that 
ineligible sites pay their fair share of the expense. The fair share is 
determined as follows:
    (i) If the vendor charges a separate and independent price for each 
site, an ineligible site must pay the full undiscounted price.
    (ii) If there is no separate and independent price for each site, 
the applicant must prorate the undiscounted price for the ``shared'' 
service, equipment, or facility between eligible and ineligible sites on 
a proportional fully-distributed basis. Applicants must make this cost 
allocation using a method that is based on objective criteria and 
reasonably reflects the eligible usage of the shared service, equipment, 
or facility. The applicant bears the burden of demonstrating the 
reasonableness of the allocation method chosen.
    (2) Ineligible components of a single service or piece of equipment. 
Applicants seeking support for a service or piece of equipment that 
includes an ineligible component must explicitly request in their 
requests for proposals that vendors include pricing for a comparable 
service or piece of equipment that is comprised of only eligible 
components. If the selected provider also submits a price for the 
eligible component on a stand-alone basis, the support amount is 
calculated based on the stand-alone price of the eligible component on a 
stand-alone basis. If the vendor does not offer the eligible component 
on a stand-alone basis, the full price of the entire service or piece of 
equipment must be taken into account,

[[Page 198]]

without regard to the value of the ineligible components, when 
determining the most cost-effective bid.
    (3) Written description. Applicants must submit a written 
description of their allocation method(s) to the Administrator with 
their funding requests.
    (4) Written agreement. If ineligible entities participate in a 
network, the allocation method must be memorialized in writing, such as 
a formal agreement among network members, a master services contract, or 
for smaller consortia, a letter signed and dated by all (or each) 
ineligible entity and the Consortium Leader.

[78 FR 13987, Mar. 1, 2013]



Sec. 54.640  Eligible vendors.

    (a) Eligibility. For purposes of the Healthcare Connect Fund, 
eligible vendors shall include any provider of equipment, facilities, or 
services that are eligible for support under Healthcare Connect Fund.
    (b) Obligation to assist health care providers. Vendors in the 
Healthcare Connect Fund must certify, as a condition of receiving 
support, that they will provide to health care providers, on a timely 
basis, all information and documents regarding supported equipment, 
facilities, or services that are necessary for the health care provider 
to submit required forms or respond to Commission or Administrator 
inquiries. The Administrator may withhold disbursements for the vendor 
if the vendor, after written notice from the Administrator, fails to 
comply with this requirement.

[78 FR 13988, Mar. 1, 2013]



Sec. 54.642  Competitive bidding requirement and exemptions.

    (a) Competitive bidding requirement. All applicants are required to 
engage in a competitive bidding process for supported services, 
facilities, or equipment consistent with the requirements set forth in 
this subpart, unless they qualify for one or more of the exemptions in 
paragraph (h) of this section. In addition, applicants may engage in 
competitive bidding even if they qualify for an exemption. Applicants 
who utilize a competitive bidding exemption may proceed directly to 
filing a funding request as described in Sec. 54.643.
    (b) Fair and open process. (1) All entities participating in the 
Healthcare Connect Fund must conduct a fair and open competitive bidding 
process, consistent with all applicable requirements.
    (2) Vendors who intend to bid to provide supported services, 
equipment, or facilities to a health care provider may not 
simultaneously help the health care provider choose a winning bid. Any 
vendor who submits a bid, and any individual or entity that has a 
financial interest in such a vendor, is prohibited from:
    (i) Preparing, signing or submitting an applicant's request for 
services;
    (ii) Serving as the Consortium Leader or other point of contact on 
behalf of applicant(s);
    (iii) Being involved in setting bid evaluation criteria; or
    (iv) Participating in the bid evaluation or vendor selection process 
(except in their role as potential vendors).
    (3) All potential bidders must have access to the same information 
and must be treated in the same manner.
    (4) All applicants and vendors must comply with any applicable 
state, Tribal, or local competitive bidding requirements. The 
competitive bidding requirements in this section apply in addition to 
state, Tribal, and local competitive bidding requirements and are not 
intended to preempt such state, Tribal, or local requirements.
    (c) Cost-effective. For purposes of the Healthcare Connect Fund, 
``cost-effective'' is defined as the method that costs the least after 
consideration of the features, quality of transmission, reliability, and 
other factors that the health care provider deems relevant to choosing a 
method of providing the required health care services.
    (d) Bid evaluation criteria. Applicants must develop weighted 
evaluation criteria (e.g., scoring matrix) that demonstrate how the 
applicant will choose the most ``cost-effective'' bid before submitting 
a Request for Services. Price must be a primary factor, but need not be 
the only primary factor. A non-price factor can receive an equal weight 
to price, but may not receive a greater weight than price.

[[Page 199]]

    (e) Request for services. Applicants must submit the following 
documents to the Administrator in order to initiate competitive bidding.
    (1) Form 461, including certifications. The applicant must provide 
the following certifications as part of the request for services.
    (i) The person signing the application is authorized to submit the 
application on behalf of the applicant and has examined the form and all 
attachments, and to the best of his or her knowledge, information, and 
belief, all statements of fact contained therein are true.
    (ii) The applicant has followed any applicable state, Tribal, or 
local procurement rules.
    (iii) All Healthcare Connect Fund support will be used solely for 
purposes reasonably related to the provision of health care service or 
instruction that the HCP is legally authorized to provide under the law 
of the state in which the services are provided and will not be sold, 
resold, or transferred in consideration for money or any other thing of 
value.
    (iv) The applicant satisfies all of the requirements under section 
254 of the Act and applicable Commission rules.
    (v) The applicant has reviewed all applicable requirements for the 
program and will comply with those requirements.
    (2) Bid evaluation criteria. Requirements for bid evaluation 
criteria are described in paragraph (d) of this section.
    (3) Declaration of assistance. All applicants must submit a 
``Declaration of Assistance'' with their Request for Services. In the 
Declaration of Assistance, applicants must identify each and every 
consultant, vendor, and other outside expert, whether paid or unpaid, 
who aided in the preparation of their applications.
    (4) Request for proposal (if applicable). (i) Any applicant may use 
a request for proposals (RFP). Applicants who use an RFP must submit the 
RFP and any additional relevant bidding information to the Administrator 
with Form 461.
    (ii) An applicant must submit an RFP:
    (A) If it is required to issue an RFP under applicable State, 
Tribal, or local procurement rules or regulations;
    (B) If the applicant is a consortium seeking more than $100,000 in 
program support during the funding year, including applications that 
seek more than $100,000 in program support for a multi-year commitment; 
or
    (C) If the applicant is a consortium seeking support for 
participant-constructed and owned network facilities.
    (iii) RFP requirements. (A) An RFP must provide sufficient 
information to enable an effective competitive bidding process, 
including describing the health care provider's service needs and 
defining the scope of the project and network costs (if applicable).
    (B) An RFP must specify the period during which bids will be 
accepted.
    (C) An RFP must include the bid evaluation criteria described in 
paragraph (d) of this section, and solicit sufficient information so 
that the criteria can be applied effectively.
    (D) Consortium applicants seeking support for long-term capital 
investments whose useful life extends beyond the period of the funding 
commitment (e.g., facilities constructed and owned by the applicant, 
fiber indefeasible rights of use) must seek bids in the same RFP from 
vendors who propose to meet those needs via services provided over 
vendor-owned facilities, for a time period comparable to the life of the 
proposed capital investment.
    (E) Applicants may prepare RFPs in any manner that complies with the 
rules in this subpart and any applicable state, Tribal, or local 
procurement rules or regulations.
    (5) Additional requirements for consortium applicants. (i) Network 
plan. Consortium applicants must submit a narrative describing specific 
elements of their network plan with their Request for Services. 
Consortia applicants are required to use program support for the 
purposes described in their narrative. The required elements of the 
narrative include:
    (A) Goals and objectives of the network;
    (B) Strategy for aggregating the specific needs of health care 
providers (including providers that serve rural areas) within a state or 
region;
    (C) Strategy for leveraging existing technology to adopt the most 
efficient

[[Page 200]]

and cost effective means of connecting those providers;
    (D) How the supported network will be used to improve or provide 
health care delivery;
    (E) Any previous experience in developing and managing health 
information technology (including telemedicine) programs; and
    (F) A project management plan outlining the project's leadership and 
management structure, and a work plan, schedule, and budget.
    (ii) Letters of agency. Consortium applicants must submit letters of 
agency pursuant to Sec. 54.632.
    (f) Public posting by the Administrator. The Administrator shall 
post on its web site the following competitive bidding documents, as 
applicable:
    (1) Form 461,
    (2) Bid evaluation criteria,
    (3) Request for proposal, and
    (4) Network plan.
    (g) 28-day waiting period. After posting the documents described in 
paragraph (f) of this section on its Web site, the Administrator shall 
send confirmation of the posting to the applicant. The applicant shall 
wait at least 28 days from the date on which its competitive bidding 
documents are posted on the Web site before selecting and committing to 
a vendor.
    (1) Selection of the most ``cost-effective'' bid and contract 
negotiation. Each applicant subject to competitive bidding is required 
to certify to the Administrator that the selected bid is, to the best of 
the applicant's knowledge, the most cost-effective option available. 
Applicants are required to submit the documentation listed in Sec. 
54.643 to support their certifications.
    (2) Applicants who plan to request evergreen status under Sec. 
54.642(h)(4)(ii) must enter into a contract that identifies both 
parties, is signed and dated by the health care provider or Consortium 
Leader after the 28-day waiting period expires, and specifies the type, 
term, and cost of service.
    (h) Exemptions to competitive bidding requirements. (1) Annual 
undiscounted cost of $10,000 or less. An applicant that seeks support 
for $10,000 or less of total undiscounted eligible expenses for a single 
year is exempt from the competitive bidding requirements under this 
section, if the term of the contract is one year or less.
    (2) Government Master Service Agreement (MSA). Eligible health care 
providers that seek support for services and equipment purchased from 
MSAs negotiated by federal, state, Tribal, or local government entities 
on behalf of such health care providers and others, if such MSAs were 
awarded pursuant to applicable federal, state, Tribal, or local 
competitive bidding requirements, are exempt from the competitive 
bidding requirements under this section.
    (3) Master Service Agreements approved under the Pilot Program or 
Healthcare Connect Fund. A eligible health care provider site may opt 
into an existing MSA approved under the Pilot Program or Healthcare 
Connect Fund and seek support for services and equipment purchased from 
the MSA without triggering the competitive bidding requirements under 
this section, if the MSA was developed and negotiated in response to an 
RFP that specifically solicited proposals that included a mechanism for 
adding additional sites to the MSA.
    (4) Evergreen contracts. (i) Subject to the provisions in Sec. 
54.644, the Administrator may designate a multi-year contract as 
``evergreen,'' which means that the service(s) covered by the contract 
need not be re-bid during the contract term.
    (ii) A contract entered into by a health care provider or consortium 
as a result of competitive bidding may be designated as evergreen if it 
meets all of the following requirements:
    (A) Is signed by the individual health care provider or consortium 
lead entity;
    (B) Specifies the service type, bandwidth and quantity;
    (C) Specifies the term of the contract;
    (D) Specifies the cost of services to be provided; and
    (E) Includes the physical location or other identifying information 
of the health care provider sites purchasing from the contract.
    (iii) Participants may exercise voluntary options to extend an 
evergreen contract without undergoing additional competitive bidding, 
if:

[[Page 201]]

    (A) The voluntary extension(s) is memorialized in the evergreen 
contract;
    (B) The decision to extend the contract occurs before the 
participant files its funding request for the funding year when the 
contract would otherwise expire; and
    (C) The voluntary extension(s) do not exceed five years in the 
aggregate.
    (5) Schools and libraries program master contracts. Subject to the 
provisions in Sec. Sec. 54.500(g), 54.501(c)(1), and 54.503, an 
eligible health care provider in a consortium with participants in the 
schools and libraries universal service support program and a party to 
the consortium's existing contract is exempt from the Healthcare Connect 
Fund competitive bidding requirements if the contract was approved in 
the schools and libraries universal service support program as a master 
contract. The health care provider must comply with all Healthcare 
Connect Fund rules and procedures except for those applicable to 
competitive bidding.

[78 FR 13988, Mar. 1, 2013]



Sec. 54.643  Funding commitments.

    (a) Once a vendor is selected, applicants must submit a ``Funding 
Request'' (and supporting documentation) to provide information about 
the services, equipment, or facilities selected and certify that the 
services selected were the most cost-effective option of the offers 
received. The following information should be submitted to the 
Administrator with the Funding Request.
    (1) Request for funding. The applicant shall submit a request for 
funding (Form 462) to identify the service(s), equipment, or facilities; 
rates; vendor(s); and date(s) of vendor selection.
    (2) Certifications. The applicant must provide the following 
certifications as part of the request for funding:
    (i) The person signing the application is authorized to submit the 
application on behalf of the applicant and has examined the form and all 
attachments, and to the best of his or her knowledge, information, and 
belief, all statements of fact contained therein are true.
    (ii) Each vendor selected is, to the best of the applicant's 
knowledge, information and belief, the most cost-effective vendor 
available, as defined in Sec. 54.642(c).
    (iii) All Healthcare Connect Fund support will be used only for 
eligible health care purposes.
    (iv) The applicant is not requesting support for the same service 
from both the Telecommunications Program and the Healthcare Connect 
Fund.
    (v) The applicant satisfies all of the requirements under section 
254 of the Act and applicable Commission rules, and understands that any 
letter from the Administrator that erroneously commits funds for the 
benefit of the applicant may be subject to rescission.
    (vi) The applicant has reviewed all applicable requirements for the 
program and will comply with those requirements.
    (vii) The applicant will maintain complete billing records for the 
service for five years.
    (3) Contracts or other documentation. All applicants must submit a 
contract or other documentation that clearly identifies the vendor(s) 
selected and the health care provider(s) who will receive the services, 
equipment, or facilities; the service, bandwidth, and costs for which 
support is being requested; and the term of the service agreement(s) if 
applicable (i.e., if services are not being provided on a month-to-month 
basis). For services, equipment, or facilities provided under contract, 
the applicant must submit a copy of the contract signed and dated (after 
the Allowable Contract Selection Date) by the individual health care 
provider or Consortium Leader. If the service, equipment, or facilities 
are not being provided under contract, the applicant must submit a bill, 
service offer, letter, or similar document from the vendor that provides 
the required information.
    (4) Competitive bidding documents. Applicants must submit 
documentation to support their certifications that they have selected 
the most cost-effective option, including a copy of each bid received 
(winning, losing, and disqualified), the bid evaluation criteria, and 
the following documents (as applicable): bid evaluation sheets; a list 
of people who evaluated bids (along with their title/role/relationship 
to the applicant organization); memos, board minutes, or similar 
documents related to the vendor selection/award; copies of

[[Page 202]]

notices to winners; and any correspondence with vendors during the 
bidding/evaluation/award phase of the process. Applicants who claim a 
competitive bidding exemption must submit relevant documentation to 
allow the Administrator to verify that the applicant is eligible for the 
claimed exemption.
    (5) Cost allocation for ineligible entities or components. Pursuant 
to Sec. 54.639(d)(3) through (d)(4), where applicable, applicants must 
submit a description of how costs will be allocated for ineligible 
entities or components, as well as any agreements that memorialize such 
arrangements with ineligible entities.
    (6) Additional documentation for consortium applicants. A consortium 
applicant must also submit the following:
    (i) Any revisions to the network plan submitted with the Request for 
Services pursuant to Sec. 54.642(e)(5)(i), as necessary. If not 
previously submitted, the consortium should provide a narrative 
description of how the network will be managed, including all 
administrative aspects of the network, including but not limited to 
invoicing, contractual matters, and network operations. If the 
consortium is required to provide a sustainability plan as set forth in 
Sec. 54.643(a)(6)(iv), the revised budget should include the budgetary 
factors discussed in the sustainability plan requirements.
    (ii) A list of participating health care providers and all of their 
relevant information, including eligible (and ineligible, if applicable) 
cost information for each participating health care provider.
    (iii) Evidence of a viable source for the undiscounted portion of 
supported costs.
    (iv) Sustainability plans for applicants requesting support for 
long-term capital expenses: Consortia that seek funding to construct and 
own their own facilities or obtain indefeasible right of use or capital 
lease interests are required to submit a sustainability plan with their 
funding requests demonstrating how they intend to maintain and operate 
the facilities that are supported over the relevant time period. 
Applicants may incorporate by reference other portions of their 
applications (e.g., project management plan, budget). The sustainability 
plan must, at a minimum, address the following points:
    (A) Projected sustainability period. Indicate the sustainability 
period, which at a minimum is equal to the useful life of the funded 
facility. The consortium's budget must show projected income and 
expenses (i.e., for maintenance) for the project at the aggregate level, 
for the sustainability period.
    (B) Principal factors. Discuss each of the principal factors that 
were considered by the participant to demonstrate sustainability. This 
discussion must include all factors that show that the proposed network 
will be sustainable for the entire sustainability period. Any factor 
that will have a monetary impact on the network must be reflected in the 
applicant's budget.
    (C) Terms of membership in the network. Describe generally any 
agreements made (or to be entered into) by network members (e.g., 
participation agreements, memoranda of understanding, usage agreements, 
or other similar agreements). The sustainability plan must also 
describe, as applicable:
    (1) Financial and time commitments made by proposed members of the 
network;
    (2) If the project includes excess bandwidth for growth of the 
network, describe how such excess bandwidth will be financed; and
    (3) If the network will include ineligible health care providers and 
other network members, describe how fees for joining and using the 
network will be assessed.
    (D) Ownership structure. Explain who will own each material element 
of the network (e.g., fiber constructed, network equipment, end user 
equipment). For purposes of this subsection, ``ownership'' includes an 
indefeasible right of use interest. Applicants must clearly identify the 
legal entity that will own each material element. Applicants must also 
describe any arrangements made to ensure continued use of such elements 
by the network members for the duration of the sustainability period.
    (E) Sources of future support. Describe other sources of future 
funding, including fees to be paid by eligible health

[[Page 203]]

care providers and/or non-eligible entities.
    (F) Management. Describe the management structure of the network for 
the duration of the sustainability period. The applicant's budget must 
describe how management costs will be funded.
    (v) Material change to sustainability plan. A consortium that is 
required to file a sustainability plan must maintain its accuracy. If 
there is a material change to a required sustainability plan that would 
impact projected income or expenses by more than 20 percent or $100,000 
from the previous submission, or if the applicant submits a funding 
request based on a new Form 462 (i.e., a new competitively bid 
contract), the consortium is required to re-file its sustainability 
plan. In the event of a material change, the applicant must provide the 
Administrator with the revised sustainability plan no later than the end 
of the relevant quarter, clearly showing (i.e., by redlining or 
highlighting) what has changed.
    (b) [Reserved]

[78 FR 13990, Mar. 1, 2013]



Sec. 54.644  Multi-year commitments.

    (a) Participants in the Healthcare Connect Fund are permitted to 
enter into multi-year contracts for eligible expenses and may receive 
funding commitments from the Administrator for a period that covers up 
to three funding years.
    (b) If a long-term contract covers a period of more than three 
years, the applicant may also have the contract designated as 
``evergreen'' under Sec. 54.642(h)(4) which will allow the applicant to 
re-apply for a funding commitment under the contract after three years 
without having to undergo additional competitive bidding.

[78 FR 13991, Mar. 1, 2013]



Sec. 54.645  Payment process.

    (a) The Consortium Leader (or health care provider, if participating 
individually) must certify to the Administrator that it has paid its 
contribution to the vendor before the invoice can be sent to 
Administrator and the vendor can be paid.
    (b) Before the Administrator may process and pay an invoice, both 
the Consortium Leader (or health care provider, if participating 
individually) and the vendor must certify that they have reviewed the 
document and that it is accurate. All invoices must be received by the 
Administrator within six months of the end date of the funding 
commitment.

[78 FR 13991, Mar. 1, 2013]



Sec. 54.646  Site and service substitutions.

    (a) A Consortium Leader (or health care provider, if participating 
individually) may request a site or service substitution if:
    (1) The substitution is provided for in the contract, within the 
change clause, or constitutes a minor modification;
    (2) The site is an eligible health care provider and the service is 
an eligible service under the Healthcare Connect Fund;
    (3) The substitution does not violate any contract provision or 
state, Tribal, or local procurement laws; and
    (4) The requested change is within the scope of the controlling 
request for services, including any applicable request for proposal used 
in the competitive bidding process.
    (b) Support for a qualifying site and service substitution will be 
provided to the extent the substitution does not cause the total amount 
of support under the applicable funding commitment to increase.

[78 FR 13991, Mar. 1, 2013]



Sec. 54.647  Data collection and reporting.

    (a) Each consortium lead entity must file an annual report with the 
Administrator on or before September 30 for the preceding funding year, 
with the information and in the form specified by the Wireline 
Competition Bureau.
    (b) Each consortium is required to file an annual report for each 
funding year in which it receives support from the Healthcare Connect 
Fund.
    (c) For consortia that receive large upfront payments, the reporting 
requirement extends for the life of the supported facility.

[78 FR 13991, Mar. 1, 2013]

[[Page 204]]



Sec. 54.648  Audits and recordkeeping.

    (a) Random audits. Participants shall be subject to random 
compliance audits and other investigations to ensure compliance with 
program rules and orders.
    (b) Recordkeeping. (1) Participants, including Consortium Leaders 
and health care providers, shall maintain records to document compliance 
with program rules and orders for at least 5 years after the last day of 
service delivered in a particular funding year. Participants who receive 
support for long-term capital investments in facilities whose useful 
life extends beyond the period of the funding commitment shall maintain 
records for at least 5 years after the end of the useful life of the 
facility. Participants shall maintain asset and inventory records of 
supported network equipment to verify the actual location of such 
equipment for a period of 5 years after purchase.
    (2) Vendors shall retain records related to the delivery of 
supported services, facilities, or equipment to document compliance with 
program rules and orders for at least 5 years after the last day of the 
delivery of supported services, equipment, or facilities in a particular 
funding year.
    (3) Both participants and vendors shall produce such records at the 
request of the Commission, any auditor appointed by the Administrator or 
the Commission, or of any other state or federal agency with 
jurisdiction.

[78 FR 13991, Mar. 1, 2013]



Sec. 54.649  Certifications.

    For individual health care provider applicants, required 
certifications must be provided and signed by an officer or director of 
the health care provider, or other authorized employee of the health 
care provider. For consortium applicants, an officer, director, or other 
authorized employee of the Consortium Leader must sign the required 
certifications. Pursuant to Sec. 54.680, electronic signatures are 
permitted for all required certifications.

[78 FR 13992, Mar. 1, 2013]

                           General Provisions



Sec. 54.671  Resale.

    (a) Prohibition on resale. Services purchased pursuant to universal 
service support mechanisms under this subpart shall not be sold, resold, 
or transferred in consideration for money or any other thing of value.
    (b) Permissible fees. The prohibition on resale set forth in 
paragraph (a) of this section shall not prohibit a health care provider 
from charging normal fees for health care services, including 
instruction related to services purchased with support provided under 
this subpart.

[78 FR 13992, Mar. 1, 2013]



Sec. 54.672  Duplicate support.

    (a) Eligible health care providers that seek support under the 
Healthcare Connect Fund for telecommunications services may not also 
request support from the Telecommunications Program for the same 
services.
    (b) Eligible health care providers that seek support under the 
Telecommunications Program or the Healthcare Connect Fund may not also 
request support from any other universal service program for the same 
expenses.

[78 FR 13992, Mar. 1, 2013]



Sec. 54.675  Cap.

    (a) Amount of the annual cap. The aggregate annual cap on federal 
universal service support for health care providers shall be $400 
million per funding year, of which up to $150 million per funding year 
will be available to support upfront payments and multi-year commitments 
under the Healthcare Connect Fund.
    (b) Funding year. A funding year for purposes of the health care 
providers cap shall be the period July 1 through June 30.
    (c) Requests. Funds shall be available as follows:
    (1) Generally, funds shall be available to eligible health care 
providers on a first-come-first-served basis, with requests accepted 
beginning on the first of January prior to each funding year.
    (2) For the Telecommunications Program and the Healthcare Connect

[[Page 205]]

Fund, the Administrator shall implement a filing window period that 
treats all eligible health care providers filing within the window 
period as if their applications were simultaneously received.
    (3) [Reserved]
    (4) The deadline to submit a funding commitment request under the 
Telecommunications Program and the Healthcare Connect Fund is June 30 
for the funding year that begins on the previous July 1.
    (d) Annual filing requirement. Health care providers shall file new 
funding requests for each funding year, except for health care providers 
who have received a multi-year funding commitment under Sec. 54.644.
    (e) Long-term contracts. If health care providers enter into long-
term contracts for eligible services, the Administrator shall only 
commit funds to cover the portion of such a long-term contract scheduled 
to be delivered during the funding year for which universal service 
support is sought, except for multi-year funding commitments as 
described in Sec. 54.644.
    (f) Pro-rata reductions for Telecommunications Program support. The 
Administrator shall act in accordance with this section when a filing 
window period for the Telecommunications Program and the Healthcare 
Connect Fund, as described in paragraph (c)(2) of this section, is in 
effect. When a filing window period described in paragraph (c)(2) of 
this section closes, the Administrator shall calculate the total demand 
for Telecommunications Program and Healthcare Connect Fund support 
submitted by all applicants during the filing window period. If the 
total demand during a filing window period exceeds the total remaining 
support available for the funding year, the Administrator shall take the 
following steps:
    (1) The Administrator shall divide the total remaining funds 
available for the funding year by the total amount of Telecommunications 
Program and Healthcare Connect Fund support requested by each applicant 
that has filed during the window period, to produce a pro-rata factor.
    (2) The Administrator shall calculate the amount of 
Telecommunications Program and Healthcare Connect Fund support requested 
by each applicant that has filed during the filing window.
    (3) The Administrator shall multiply the pro-rata factor by the 
total dollar amount requested by each applicant filing during the window 
period. Administrator shall then commit funds to each applicant for 
Telecommunications Program and Healthcare Connect Fund support 
consistent with this calculation.

[78 FR 13992, Mar. 1, 2013]



Sec. 54.679  Election to offset support against annual universal service fund 

contribution.

    (a) A service provider that contributes to the universal service 
support mechanisms under subpart H of this part and also provides 
services eligible for support under this subpart to eligible health care 
providers may, at the election of the contributor:
    (1) Treat the amount eligible for support under this subpart as an 
offset against the contributor's universal service support obligation 
for the year in which the costs for providing eligible services were 
incurred; or
    (2) Receive direct reimbursement from the Administrator for that 
amount.
    (b) Service providers that are contributors 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 service provider that fails to remit its 
monthly universal service contribution obligation, however, shall first 
be applied as an offset to that contributor's contribution obligation. 
Such a service provider shall remain subject to the offsetting method 
for the remainder of the calendar year in which it failed to remit its 
monthly universal service obligation. A service provider 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.
    (c) If a service provider providing services eligible for support 
under this subpart elects to treat that support

[[Page 206]]

amount as an offset against its universal service contribution 
obligation and the total amount of support owed exceeds its universal 
service obligation, calculated on an annual basis, the service provider 
shall receive a direct reimbursement in the amount of the difference. 
Any such reimbursement due a service provider shall be provided by the 
Administrator 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 contributor's universal service obligation was applied.

[78 FR 13992, Mar. 1, 2013]



Sec. 54.680  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.

[78 FR 13993, Mar. 1, 2013]



                        Subpart H_Administration



Sec. 54.701  Administrator of universal service support mechanisms.

    (a) The Universal Service Administrative Company is appointed the 
permanent Administrator of the federal universal service support 
mechanisms, subject to a review after one year by the Federal 
Communications Commission to determine that the Administrator is 
administering the universal service support mechanisms in an efficient, 
effective, and competitively neutral manner.
    (b) The Administrator shall establish a nineteen (19) member Board 
of Directors, as set forth in Sec. 54.703. The Administrator's Board of 
Directors shall establish three Committees of the Board of Directors, as 
set forth in Sec. 54.705: (1) the Schools and Libraries Committee, 
which shall oversee the schools and libraries support mechanism; (2) the 
Rural Health Care Committee, which shall oversee the rural health care 
support mechanism; and (3) the High Cost and Low Income Committee, which 
shall oversee the high cost and low income support mechanism. The Board 
of Directors shall not modify substantially the power or authority of 
the Committees of the Board without prior approval from the Federal 
Communications Commission.
    (c)(1) The Administrator shall establish three divisions:
    (i) The Schools and Libraries Division, which shall perform duties 
and functions in connection with the schools and libraries support 
mechanism under the direction of the Schools and Libraries Committee of 
the Board, as set forth in Sec. 54.705(a);
    (ii) The Rural Health Care Division, which shall perform duties and 
functions in connection with the rural health care support mechanism 
under the direction of the Rural Health Care Committee of the Board, as 
set forth in Sec. 54.705(b); and
    (iii) The High Cost and Low Income Division, which shall perform 
duties and functions in connection with the high cost and low income 
support mechanism, the interstate access universal service support 
mechanism for price cap carriers described in subpart J of this part, 
and the interstate common line support mechanism for rate-of-return 
carriers described in subpart K of this part, under the direction of the 
High Cost and Low Income Committee of the Board, as set forth in Sec. 
54.705(c).
    (2) As directed by the Committees of the Board set forth in Sec. 
54.705, these divisions shall perform the duties and functions unique to 
their respective support mechanisms.
    (d) The Administrator shall be managed by a Chief Executive Officer, 
as

[[Page 207]]

set forth in Sec. 54.704. The Chief Executive Officer shall serve on 
the Committees of the Board established in Sec. 54.705.

[63 FR 70572, Dec. 21, 1998, as amended at 65 FR 38689, June 21, 2000; 
65 FR 57739, Sept. 26, 2000; 66 FR 59727, Nov. 30, 2001; 68 FR 36943, 
June 20, 2003]



Sec. 54.702  Administrator's functions and responsibilities.

    (a) The Administrator, and the divisions therein, shall be 
responsible for administering the schools and libraries support 
mechanism, the rural health care support mechanism, the high-cost 
support mechanism, and the low income support mechanism.
    (b) The Administrator shall be responsible for billing contributors, 
collecting contributions to the universal service support mechanisms, 
and disbursing universal service support funds.
    (c) The Administrator may not make policy, interpret unclear 
provisions of the statute or rules, or interpret the intent of Congress. 
Where the Act or the Commission's rules are unclear, or do not address a 
particular situation, the Administrator shall seek guidance from the 
Commission.
    (d) The Administrator may advocate positions before the Commission 
and its staff only on administrative matters relating to the universal 
service support mechanisms.
    (e) The Administrator shall maintain books of account separate from 
those of the National Exchange Carrier Association, of which the 
Administrator is an independent subsidiary. The Administrator's books of 
account shall be maintained in accordance with generally accepted 
accounting principles. The Administrator may borrow start up funds from 
the National Exchange Carrier Association. Such funds may not be drawn 
from the Telecommunications Relay Services (TRS) fund or TRS 
administrative expense accounts.
    (f) The Administrator shall create and maintain a website, as 
defined in Sec. 54.5, on which applications for services will be posted 
on behalf of schools, libraries and rural health care providers.
    (g) The Administrator shall file with the Commission and Congress an 
annual report by March 31 of each year. The report shall detail the 
Administrator's operations, activities, and accomplishments for the 
prior year, including information about participation in each of the 
universal service support mechanisms and administrative action intended 
to prevent waste, fraud, and abuse. The report also shall include an 
assessment of subcontractors' performance, and an itemization of monthly 
administrative costs that shall include all expenses, receipts, and 
payments associated with the administration of the universal service 
support programs. The Administrator shall consult each year with 
Commission staff to determine the scope and content of the annual 
report.
    (h) The Administrator shall report quarterly to the Commission on 
the disbursement of universal service support program funds. The 
Administrator shall keep separate accounts for the amounts of money 
collected and disbursed for eligible schools and libraries, rural health 
care providers, low-income consumers, and high-cost and insular areas.
    (i) Information based on the Administrator's reports will be made 
public by the Commission at least once a year as part of a Monitoring 
Report.
    (j) The Administrator shall provide the Commission full access to 
the data collected pursuant to the administration of the universal 
service support programs.
    (k) Pursuant to Sec. 64.903 of this chapter, the Administrator 
shall file with the Commission a cost allocation manual (CAM) that 
describes the accounts and procedures the Administrator will use to 
allocate the shared costs of administering the universal service support 
mechanisms and its other operations.
    (l) The Administrator shall make available to whomever the 
Commission directs, free of charge, any and all intellectual property, 
including, but not limited to, all records and information generated by 
or resulting from its role in administering the support mechanisms, if 
its participation in administering the universal service support 
mechanisms ends.
    (m) If its participation in administering the universal service 
support mechanisms ends, the Administrator

[[Page 208]]

shall be subject to close-out audits at the end of its term.
    (n) The Administrator shall account for the financial transactions 
of the Universal Service Fund in accordance with generally accepted 
accounting principles for federal agencies and maintain the accounts of 
the Universal Service Fund in accordance with the United States 
Government Standard General Ledger. When the Administrator, or any 
independent auditor hired by the Administrator, conducts audits of the 
beneficiaries of the Universal Service Fund, contributors to the 
Universal Service Fund, or any other providers of services under the 
universal service support mechanisms, such audits shall be conducted in 
accordance with generally accepted government auditing standards. In 
administering the Universal Service Fund, the Administrator shall also 
comply with all relevant and applicable federal financial management and 
reporting statutes.
    (o) The Administrator shall provide performance measurements 
pertaining to the universal service support mechanisms as requested by 
the Commission by order or otherwise.

[63 FR 70573, Dec. 21, 1998, as amended at 65 FR 38690, June 21, 2000; 
65 FR 57739, Sept. 26, 2000; 66 FR 59727, Nov. 30, 2001; 67 FR 11259, 
Mar. 13, 2002; 69 FR 5719, Feb. 6, 2004; 72 FR 54218, Sept. 24, 2007; 76 
FR 73876, Nov. 29, 2011]



Sec. 54.703  The Administrator's Board of Directors.

    (a) The Administrator shall have a Board of Directors separate from 
the Board of Directors of the National Exchange Carrier Association. The 
National Exchange Carrier Association's Board of Directors shall be 
prohibited from participating in the functions of the Administrator.
    (b) Board composition. The independent subsidiary's Board of 
Directors shall consist of nineteen (19) directors:
    (1) Three directors shall represent incumbent local exchange 
carriers, with one director representing the Bell Operating Companies 
and GTE, one director representing ILECs (other than the Bell Operating 
Companies) with annual operating revenues in excess of $40 million, and 
one director representing ILECs (other than the Bell Operating 
Companies) with annual operating revenues of $40 million or less;
    (2) Two directors shall represent interexchange carriers, with one 
director representing interexchange carriers with more than $3 billion 
in annual operating revenues and one director representing interexchange 
carriers with annual operating revenues of $3 billion or less;
    (3) One director shall represent commercial mobile radio service 
(CMRS) providers;
    (4) One director shall represent competitive local exchange 
carriers;
    (5) One director shall represent cable operators;
    (6) One director shall represent information service providers;
    (7) Three directors shall represent schools that are eligible to 
receive discounts pursuant to Sec. 54.501;
    (8) One director shall represent libraries that are eligible to 
receive discounts pursuant to Sec. 54.501;
    (9) Two directors shall represent rural health care providers that 
are eligible to receive supported services pursuant to Sec. 54.601;
    (10) One director shall represent low-income consumers;
    (11) One director shall represent state telecommunications 
regulators;
    (12) One director shall represent state consumer advocates; and
    (13) The Chief Executive Officer of the Administrator.
    (c) Selection process for board of directors. (1) Sixty (60) days 
prior to the expiration of a director's term, the industry or non-
industry group that is represented by such director on the 
Administrator's Board of Directors, as specified in paragraph (b) of 
this section, shall nominate by consensus a new director. The industry 
or non-industry group shall submit the name of its nominee for a seat on 
the Administrator's Board of Directors, along with relevant professional 
and biographical information about the nominee, to the Chairman of the 
Federal Communications Commission. Only members of the industry or non-
industry group that a Board member will represent may submit a 
nomination for that position.
    (2) The name of an industry or non-industry group's nominee shall be 
filed

[[Page 209]]

with the Office of the Secretary of the Federal Communications 
Commission in accordance with part 1 of this chapter. The document 
nominating a candidate shall be captioned ``In the matter of: Nomination 
for Universal Service Administrator's Board of Directors'' and shall 
reference FCC Docket Nos. 97-21 and 96-45. Each nomination shall specify 
the position on the Board of Directors for which such nomination is 
submitted. Two copies of the document nominating a candidate shall be 
submitted to the Wireline Competition Bureau's Telecommunications Access 
Policy Division.
    (3) The Chairman of the Federal Communications Commission shall 
review the nominations submitted by industry and non-industry groups and 
select each director of the Administrator's Board of Directors, as each 
director's term expires pursuant to paragraph (d) of this section. If an 
industry or non-industry group does not reach consensus on a nominee or 
fails to submit a nomination for a position on the Administrator's Board 
of Directors, the Chairman of the Federal Communications Commission 
shall select an individual to represent such group on the 
Administrator's Board of Directors.
    (d) Board member terms. The directors of the Administrator's Board 
shall be appointed for three-year terms, except that the Chief Executive 
Officer shall be a permanent member of the Board. Board member terms 
shall run from January 1 of the first year of the term to December 31 of 
the third year of the term, except that, for purposes of the term 
beginning on January 1, 1999, the terms of the six directors shall 
expire on December 31, 2000, the terms of another six directors on 
December 31, 2001, and the terms of the remaining six directors on 
December 31, 2002. Directors may be reappointed for subsequent terms 
pursuant to the initial nomination and appointment process described in 
paragraph (c) of this section. If a Board member vacates his or her seat 
prior to the completion of his or her term, the Administrator will 
notify the Wireline Competition Bureau of such vacancy, and a successor 
will be chosen pursuant to the nomination and appointment process 
described in paragraph (c) of this section.
    (e) All meetings of the Administrator's Board of Directors shall be 
open to the public and held in Washington, D.C.
    (f) Each member of the Administrator's Board of Directors shall be 
entitled to receive reimbursement for expenses directly incurred as a 
result of his or her participation on the Administrator's Board of 
Directors.

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



Sec. 54.704  The Administrator's Chief Executive Officer.

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

[63 FR 70574, Dec. 21, 1998]

[[Page 210]]



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

    (a) Schools and Libraries Committee--(1) Committee functions. The 
Schools and Libraries Committee shall oversee the administration of the 
schools and libraries support mechanism by the Schools and Libraries 
Division. The Schools and Libraries Committee shall have the authority 
to make decisions concerning:
    (i) How the Administrator projects demand for the schools and 
libraries support mechanism;
    (ii) Development of applications and associated instructions as 
needed for the schools and libraries support mechanism;
    (iii) Administration of the application process, including 
activities to ensure compliance with Federal Communications Commission 
rules and regulations;
    (iv) Performance of outreach and education functions;
    (v) Review of bills for services that are submitted by schools and 
libraries;
    (vi) Monitoring demand for the purpose of determining when the $2 
billion trigger has been reached;
    (vii) Implementation of the rules of priority in accordance with 
Sec. 54.507(g) of this chapter;
    (viii) Review and certification of technology plans when a state 
agency has indicated that it will not be able to review such plans 
within a reasonable time;
    (ix) The classification of schools and libraries as urban or rural 
and the use of the discount matrix established in Sec. 54.505(c) of 
this chapter to set the discount rate to be applied to services 
purchased by eligible schools and libraries;
    (x) Performance of audits of beneficiaries under the schools and 
libraries support mechanism; and
    (xi) Development and implementation of other functions unique to the 
schools and libraries support mechanism.
    (2) Committee composition. The Schools and Libraries Committee shall 
consist of the following members of the Administrator's Board of 
Directors:
    (i) Three school representatives;
    (ii) One library representative;
    (iii) One service provider representative;
    (iv) One at-large representative elected by the Administrator's 
Board of Directors; and
    (v) The Administrator's Chief Executive Officer.
    (b) Rural Health Care Committee--(1) Committee functions. The Rural 
Health Care Committee shall oversee the administration of the rural 
health care support mechanism by the Rural Health Care Division. The 
Rural Health Care Committee shall have authority to make decisions 
concerning:
    (i) How the Administrator projects demand for the rural health care 
support mechanism;
    (ii) Development of applications and associated instructions as 
needed for the rural health care support mechanism;
    (iii) Administration of the application process, including 
activities to ensure compliance with Federal Communications Commission 
rules and regulations;
    (iv) Calculation of support levels under Sec. 54.609;
    (v) Performance of outreach and education functions;
    (vi) Review of bills for services that are submitted by rural health 
care providers;
    (vii) Monitoring demand for the purpose of determining when the $400 
million cap has been reached;
    (viii) Performance of audits of beneficiaries under the rural health 
care support mechanism; and
    (ix) Development and implementation of other functions unique to the 
rural health care support mechanism.
    (2) Committee composition. The Rural Health Care Committee shall 
consist of the following members of the Administrator's Board of 
Directors:
    (i) Two rural health care representatives;
    (ii) One service provider representative;
    (iii) Two at-large representatives elected by the Administrator's 
Board of Directors;
    (iv) One State telecommunications regulator, one state consumer 
advocate; and
    (v) The Administrator's Chief Executive Officer.

[[Page 211]]

    (c) High Cost and Low Income Committee--(1) Committee functions. The 
High Cost and Low Income Committee shall oversee the administration of 
the high cost and low income support mechanisms, the interstate access 
universal service support mechanism for price cap carriers described in 
subpart J of this part, and the interstate common line support mechanism 
for rate-of-return carriers described in subpart K of this part by the 
High Cost and Low Income Division. The High Cost and Low Income 
Committee shall have the authority to make decisions concerning:
    (i) How the Administrator projects demand for the high cost, low 
income, interstate access universal service, and interstate common line 
support mechanisms;
    (ii) Development of applications and associated instructions as 
needed for the high cost, low income, interstate access universal 
service, and interstate common line support mechanisms;
    (iii) Administration of the application process, including 
activities to ensure compliance with Federal Communications Commission 
rules and regulations;
    (iv) Performance of audits of beneficiaries under the high cost, low 
income, interstate access universal service and interstate common line 
support mechanisms; and
    (v) Development and implementation of other functions unique to the 
high cost, low income, interstate access universal service and 
interstate common line support mechanisms.
    (d) Binding Authority of Committees of the Board. (1) Any action 
taken by the Committees of the Board established in paragraphs (a) 
through (c) of this section shall be binding on the Board of Directors 
of the Administrator, unless such action is presented for review to the 
Board by the Administrator's Chief Executive Officer and the Board 
disapproves of such action by a two-thirds vote of a quorum of 
directors, as defined in the Administrator's by-laws.
    (2) The budgets prepared by each Committee shall be subject to Board 
review as part of the Administrator's combined budget. The Board shall 
not modify the budgets prepared by the Committees of the Board unless 
such modification is approved by a two-thirds vote of a quorum of the 
Board, as defined in the Administrator's by-laws.

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



Sec. 54.706  Contributions.

    (a) Entities that provide interstate telecommunications to the 
public, or to such classes of users as to be effectively available to 
the public, for a fee will be considered telecommunications carriers 
providing interstate telecommunications services and must contribute to 
the universal service support mechanisms. Certain other providers of 
interstate telecommunications, such as payphone providers that are 
aggregators, providers of interstate telecommunications for a fee on a 
non-common carrier basis, and interconnected VoIP providers, also must 
contribute to the universal service support mechanisms. Interstate 
telecommunications include, but are not limited to:
    (1) Cellular telephone and paging services;
    (2) Mobile radio services;
    (3) Operator services;
    (4) Personal communications services (PCS);
    (5) Access to interexchange service;
    (6) Special access service;
    (7) WATS;
    (8) Toll-free service;
    (9) 900 service;
    (10) Message telephone service (MTS);
    (11) Private line service;
    (12) Telex;
    (13) Telegraph;
    (14) Video services;
    (15) Satellite service;
    (16) Resale of interstate services;
    (17) Payphone services; and
    (18) Interconnected VoIP services.
    (19) Prepaid calling card providers.
    (b) Except as provided in paragraph (c) of this section, every 
entity required to contribute to the federal universal service support 
mechanisms under paragraph (a) of this section shall contribute on the 
basis of its projected collected interstate and international end-user 
telecommunications revenues, net of projected contributions.

[[Page 212]]

    (c) Any entity required to contribute to the federal universal 
service support mechanisms whose projected collected interstate end-user 
telecommunications revenues comprise less than 12 percent of its 
combined projected collected interstate and international end-user 
telecommunications revenues shall contribute based only on such entity's 
projected collected interstate end-user telecommunications revenues, net 
of projected contributions. For purposes of this paragraph, an 
``entity'' shall refer to the entity that is subject to the universal 
service reporting requirements in Sec. 54.711 and shall include all of 
that entity's affiliated providers of interstate and international 
telecommunications and telecommunications services.
    (d) Entities providing open video systems (OVS), cable leased 
access, or direct broadcast satellite (DBS) services are not required to 
contribute on the basis of revenues derived from those services. The 
following entities will not be required to contribute to universal 
service: non-profit health care providers; broadcasters; systems 
integrators that derive less than five percent of their systems 
integration revenues from the resale of telecommunications. Prepaid 
calling card providers are not required to contribute on the basis of 
revenues derived from prepaid calling cards sold by, to, or pursuant to 
contract with the Department of Defense (DoD) or a DoD entity.
    (e) Any entity required to contribute to the federal universal 
service support mechanisms shall retain, for at least five years from 
the date of the contribution, all records that may be required to 
demonstrate to auditors that the contributions made were in compliance 
with the Commission's universal service rules. These records shall 
include without limitation the following: Financial statements and 
supporting documentation; accounting records; historical customer 
records; general ledgers; and any other relevant documentation. This 
document retention requirement also applies to any contractor or 
consultant working on behalf of the contributor.

[63 FR 70575, Dec. 21, 1998, as amended at 64 FR 60358, Nov. 5, 1999; 67 
FR 11260, Mar. 13, 2002; 67 FR 79532, Dec. 30, 2002; 71 FR 38796, July 
10, 2006; 71 FR 43673, Aug. 2, 2006; 72 FR 54218, Sept. 24, 2007]



Sec. 54.707  Audit controls.

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



Sec. 54.708  De minimis exemption.

    If a contributor's contribution to universal service in any given 
year is less than $10,000 that contributor will not be required to 
submit a contribution or Telecommunications Reporting Worksheet for that 
year unless it is required to do so to by our rules governing 
Telecommunications Relay Service (47 CFR 64.601 et seq. of this 
chapter), numbering administration (47 CFR 52.1 et seq. of this 
chapter), or shared costs of local number portability (47 CFR 52.21 et 
seq. of this chapter). The foregoing notwithstanding, all interconnected 
VoIP providers, including those whose contributions would be de minimis, 
must file the Telecommunications Reporting Worksheet. If a contributor 
improperly claims exemption from the contribution requirement, it will 
subject to the criminal provisions of sections 220(d) and (e) of

[[Page 213]]

the Act regarding willful false submissions and will be required to pay 
the amounts withheld plus interest.

[64 FR 41331, July 30, 1999, as amended at 71 FR 38797, July 10, 2006]



Sec. 54.709  Computations of required contributions to universal service 

support mechanisms.

    (a) Prior to April 1, 2003, contributions to the universal service 
support mechanisms shall be based on contributors' end-user 
telecommunications revenues and on a contribution factor determined 
quarterly by the Commission. Contributions to the mechanisms beginning 
April 1, 2003 shall be based on contributors' projected collected end-
user telecommunications revenues, and on a contribution factor 
determined quarterly by the Commission.
    (1) For funding the federal universal service support mechanisms 
prior to April 1, 2003, the subject revenues will be contributors' 
interstate and international revenues derived from domestic end users 
for telecommunications or telecommunications services, net of prior 
period actual contributions. Beginning April 1, 2003, the subject 
revenues will be contributors' projected collected interstate and 
international revenues derived from domestic end users for 
telecommunications or telecommunications services, net of projected 
contributions.
    (2) Prior to April 1, 2003, the quarterly universal service 
contribution factor shall be determined by the Commission based on the 
ratio of total projected quarterly expenses of the universal service 
support mechanisms to the total end-user interstate and international 
telecommunications revenues, net of prior period actual contributions. 
Beginning April 1, 2003, the quarterly universal service contribution 
factor shall be determined by the Commission based on the ratio of total 
projected quarterly expenses of the universal service support mechanisms 
to the total projected collected end-user interstate and international 
telecommunications revenues, net of projected contributions. The 
Commission shall approve the Administrator's quarterly projected costs 
of the universal service support mechanisms, taking into account demand 
for support and administrative expenses. The total subject revenues 
shall be compiled by the Administrator based on information contained in 
the Telecommunications Reporting Worksheets described in Sec. 
54.711(a).
    (3) Total projected expenses for the federal universal service 
support mechanisms for each quarter must be approved by the Commission 
before they are used to calculate the quarterly contribution factor and 
individual contributions. For each quarter, the Administrator must 
submit its projections of demand for the federal universal service 
support mechanisms for high-cost areas, low-income consumers, schools 
and libraries, and rural health care providers, respectively, and the 
basis for those projections, to the Commission and the Office of the 
Managing Director at least sixty (60) calendar days prior to the start 
of that quarter. For each quarter, the Administrator must submit its 
projections of administrative expenses for the high-cost mechanism, the 
low-income mechanism, the schools and libraries mechanism and the rural 
health care mechanism and the basis for those projections to the 
Commission and the Office of the Managing Director at least sixty (60) 
calendar days prior to the start of that quarter. Based on data 
submitted to the Administrator on the Telecommunications Reporting 
Worksheets, the Administrator must submit the total contribution base to 
the Office of the Managing Director at least thirty (30) days before the 
start of each quarter. The projections of demand and administrative 
expenses and the contribution factor shall be announced by the 
Commission in a public notice and shall be made available on the 
Commission's website. The Commission reserves the right to set 
projections of demand and administrative expenses at amounts that the 
Commission determines will serve the public interest at any time within 
the fourteen-day period following release of the Commission's public 
notice. If the Commission take no action within fourteen (14) days of 
the date of release of the public notice announcing the projections of 
demand and administrative expenses, the projections of demand and 
administrative expenses, and the contribution

[[Page 214]]

factor shall be deemed approved by the Commission. Except as provided in 
Sec. 54.706(c), the Administrator shall apply the quarterly 
contribution factor, once approved by the Commission, to contributor's 
interstate and international end-user telecommunications revenues to 
calculate the amount of individual contributions.
    (b) If the contributions received by the Administrator in a quarter 
exceed the amount of universal service support program contributions and 
administrative costs for that quarter, the excess payments will be 
carried forward to the following quarter. The contribution factors for 
the following quarter will take into consideration the projected costs 
of the support mechanisms for that quarter and the excess contributions 
carried over from the previous quarter. The Commission may instruct the 
Administrator to treat excess contributions in a manner other than as 
prescribed in this paragraph (b). Such instructions may be made in the 
form of a Commission Order or a public notice released by the Wireline 
Competition Bureau. Any such public notice will become effective 
fourteen days after release of the public notice, absent further 
Commission action.
    (c) If the contributions received by the Administrator in a quarter 
are inadequate to meet the amount of universal service support program 
payments and administrative costs for that quarter, the Administrator 
shall request authority from the Commission to borrow funds 
commercially, with such debt secured by future contributions. Subsequent 
contribution factors will take into consideration the projected costs of 
the support mechanisms and the additional costs associated with 
borrowing funds.
    (d) If a contributor fails to file a Telecommunications Reporting 
Worksheet by the date on which it is due, the Administrator shall bill 
that contributor based on whatever relevant data the Administrator has 
available, including, but not limited to, the number of lines 
presubscribed to the contributor and data from previous years, taking 
into consideration any estimated changes in such data.

[62 FR 41305, Aug. 1, 1997, as amended at 62 FR 65038, Dec. 10, 1997; 63 
FR 2132, Jan. 13, 1998; 63 FR 43098, Aug. 12, 1998; 63 FR 70576, Dec. 
21, 1998; 64 FR 41331, July 30, 1999; 64 FR 60358, Nov. 5, 1999; 66 FR 
16151, Mar. 23, 2001; 67 FR 11260, Mar. 13, 2002; 67 FR 13227, Mar. 21, 
2002; 67 FR 79533, Dec. 30, 2002; 68 FR 38642, June 30, 2003; 71 FR 
38267, July 6, 2006; 76 FR 73876, Nov. 29, 2011]



Sec. 54.711  Contributor reporting requirements.

    (a) Contributions shall be calculated and filed in accordance with 
the Telecommunications Reporting Worksheet which shall be published in 
the Federal Register. The Telecommunications Reporting Worksheet sets 
forth information that the contributor must submit to the Administrator 
on a quarterly and annual basis. The Commission shall announce by Public 
Notice published in the Federal Register and on its website the manner 
of payment and dates by which payments must be made. An executive 
officer of the contributor must certify to the truth and accuracy of 
historical data included in the Telecommunications Reporting Worksheet, 
and that any projections in the Telecommunications Reporting Worksheet 
represent a good-faith estimate based on the contributor's policies and 
procedures. The Commission or the Administrator may verify any 
information contained in the Telecommunications Reporting Worksheet. 
Contributors shall maintain records and documentation to justify 
information reported in the Telecommunications Reporting Worksheet, 
including the methodology used to determine projections, for three years 
and shall provide such records and documentation to the Commission or 
the Administrator upon request. Inaccurate or untruthful information 
contained in the Telecommunications Reporting Worksheet may lead to 
prosecution under the criminal provisions of Title 18 of the United 
States Code. The Administrator shall advise the Commission of any 
enforcement issues that arise and provide any suggested response.

[[Page 215]]

    (b) The Commission shall have access to all data reported to the 
Administrator. Contributors may make requests for Commission 
nondisclosure of company-specific revenue information under Sec. 0.459 
of this chapter by so indicating on the Telecommunications Reporting 
Worksheet at the time that the subject data are submitted. The 
Commission shall make all decisions regarding nondisclosure of company-
specific information. The Administrator shall keep confidential all data 
obtained from contributors, shall not use such data except for purposes 
of administering the universal service support programs, and shall not 
disclose such data in company-specific form unless directed to do so by 
the Commission. Subject to any restrictions imposed by the Chief of the 
Wireline Competition Bureau, the Universal Service Administrator may 
share data obtained from contributors with the administrators of the 
North American Numbering Plan administration cost recovery (See 47 CFR 
52.16 of this chapter), the local number portability cost recovery (See 
47 CFR 52.32 of this chapter), and the TRS Fund (See 47 CFR 
64.604(c)(4)(iii)(H) of this chapter). The Administrator shall keep 
confidential all data obtained from other administrators and shall not 
use such data except for purposes of administering the universal service 
support mechanisms.
    (c) The Bureau may waive, reduce, modify, or eliminate contributor 
reporting requirements that prove unnecessary and require additional 
reporting requirements that the Bureau deems necessary to the sound and 
efficient administration of the universal service support mechanisms.

[64 FR 41332, July 30, 1999, as amended at 66 FR 16151, Mar. 23, 2001; 
67 FR 13227, Mar. 21, 2002; 67 FR 79533, Dec. 30, 2002]



Sec. 54.712  Contributor recovery of universal service costs from end users.

    (a) Federal universal service contribution costs may be recovered 
through interstate telecommunications-related charges to end users. If a 
contributor chooses to recover its federal universal service 
contribution costs through a line item on a customer's bill the amount 
of the federal universal service line-item charge may not exceed the 
interstate telecommunications portion of that customer's bill times the 
relevant contribution factor.
    (b) [Reserved]

[67 FR 79533, Dec. 30, 2002, as amended at 68 FR 15672, Apr. 1, 2003; 71 
FR 38797, July 10, 2006]



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

    (a) A contributor that fails to file a Telecommunications Reporting 
Worksheet and subsequently is billed by the Administrator shall pay the 
amount for which it is billed. The Administrator may bill a contributor 
a separate assessment for reasonable costs incurred because of that 
contributor's filing of an untruthful or inaccurate Telecommunications 
Reporting Worksheet, failure to file the Telecommunications Reporting 
Worksheet, or late payment of contributions. Failure to file the 
Telecommunications Reporting Worksheet or to submit required quarterly 
contributions may subject the contributor to the enforcement provisions 
of the Act and any other applicable law. The Administrator shall advise 
the Commission of any enforcement issues that arise and provide any 
suggested response. Once a contributor complies with the 
Telecommunications Reporting Worksheet filing requirements, the 
Administrator may refund any overpayments made by the contributor, less 
any fees, interest, or costs.
    (b) If a universal service fund contributor fails to make full 
payment on or before the date due of the monthly amount established by 
the contributor's applicable Form 499-A or Form 499-Q, or the monthly 
invoice provided by the Administrator, the payment is delinquent. All 
such delinquent amounts shall incur from the date of delinquency, and 
until all charges and costs are paid in full, interest at the rate equal 
to the U.S. prime rate (in effect on the date of the delinquency) plus 
3.5 percent, as well as administrative charges of collection and/or 
penalties and charges permitted by the applicable law (e.g., 31 U.S.C. 
3717 and implementing regulations).
    (c) If a universal service fund contributor is more than 30 days 
delinquent in filing a Telecommunications

[[Page 216]]

Reporting Worksheet Form 499-A or 499-Q, the Administrator shall assess 
an administrative remedial collection charge equal to the greater of 
$100 or an amount computed using the rate of the U.S. prime rate (in 
effect on the date the applicable Worksheet is due) plus 3.5 percent, of 
the amount due per the Administrator's calculations. In addition, the 
contributor is responsible for administrative charges of collection and/
or penalties and charges permitted by the applicable law (e.g., 31 
U.S.C. 3717 and implementing regulations). The Commission may also 
pursue enforcement action against delinquent contributors and late 
filers, and assess costs for collection activities in addition to those 
imposed by the Administrator.
    (d) In the event a contributor fails both to file the Worksheet and 
to pay its contribution, interest will accrue on the greater of the 
amounts due, beginning with the earlier of the date of the failure to 
file or pay.
    (e) If a universal service fund contributor pays the Administrator a 
sum that is less than the amount due for the contributor's universal 
service contribution, the Administrator shall adhere to the ``American 
Rule'' whereby payment is applied first to outstanding penalty and 
administrative cost charges, next to accrued interest, and third to 
outstanding principal. In applying the payment to outstanding principal, 
the Administrator shall apply such payment to the contributor's oldest 
past due amounts first.

[72 FR 54219, Sept. 24, 2007]



Sec. 54.715  Administrative expenses of the Administrator.

    (a) The annual administrative expenses of the Administrator should 
be commensurate with the administrative expenses of programs of similar 
size, with the exception of the salary levels for officers and employees 
of the Administrator described in paragraph (b) of this section. The 
annual administrative expenses may include, but are not limited to, 
salaries of officers and operations personnel, the costs of borrowing 
funds, equipment costs, operating expenses, directors' expenses, and 
costs associated with auditing contributors of support recipients.
    (b) All officers and employees of the Administrator may be 
compensated at an annual rate of pay, including any non-regular 
payments, bonuses, or other compensation, in an amount not to exceed the 
rate of basic pay in effect for Level I of the Executive Schedule under 
5 U.S.C. 5312.

    Note to paragraph (b): The compensation to be included when 
calculating whether an employee's rate of pay exceeds Level I of the 
Executive Schedule does not include life insurance benefits, retirement 
benefits (including payments to 401(k) plans), health insurance 
benefits, or other similar benefits, provided that any such benefits are 
reasonably comparable to benefits that are provided to employees of the 
federal government.

    (c) The Administrator shall submit to the Commission projected 
quarterly budgets at least sixty (60) days prior to the start of every 
quarter. The Commission must approve the projected quarterly budgets 
before the Administrator disburses funds under the federal universal 
service support mechanisms. The administrative expenses incurred by the 
Administrator in connection with the schools and libraries support 
mechanism, the rural health care support mechanism, the high-cost 
support mechanism, and the low income support mechanism shall be 
deducted from the annual funding of each respective support mechanism. 
The expenses deducted from the annual funding for each support mechanism 
also shall include the Administrator's joint and common costs allocated 
to each support mechanism pursuant to the cost allocation manual filed 
by the Administrator under Sec. 64.903 of this chapter.

[63 FR 70576, Dec. 21, 1998, as amended at 65 FR 38690, June 21, 2000; 
65 FR 57739, Sept. 26, 2000; 66 FR 59728, Nov. 30, 2001; 69 FR 5719, 
Feb. 6, 2004; 76 FR 73877, Nov. 29, 2011]



Sec. 54.717  Audits of the Administrator.

    The Administrator shall obtain and pay for an annual audit conducted 
by an independent auditor to examine its operations and books of account 
to determine, among other things, whether the Administrator is properly 
administering the universal service support mechanisms to prevent fraud, 
waste, and abuse:

[[Page 217]]

    (a) Before selecting an independent auditor, the Administrator shall 
submit preliminary audit requirements, including the proposed scope of 
the audit and the extent of compliance and substantive testing, to the 
Office of Managing Director.
    (b) The Office of Managing Director shall review the preliminary 
audit requirements to determine whether they are adequate to meet the 
audit objectives. The Office of Managing Director shall prescribe 
modifications that shall be incorporated into the final audit 
requirements.
    (c) After the audit requirements have been approved by the Office of 
Managing Director, the Administrator shall engage within thirty (30) 
calendar days an independent auditor to conduct the annual audit 
required by this paragraph. In making its selection, the Administrator 
shall not engage any independent auditor who has been involved in 
designing any of the accounting or reporting systems under review in the 
audit.
    (d) The independent auditor selected by the Administrator to conduct 
the annual audit shall be instructed by the Administrator to develop a 
detailed audit program based on the final audit requirements and shall 
be instructed by the Administrator to submit the audit program to the 
Office of Managing Director. The Office of Managing Director shall 
review the audit program and make modifications, as needed, that shall 
be incorporated into the final audit program. During the course of the 
audit, the Office of Managing Director may direct the Administrator to 
direct the independent auditor to take any actions necessary to ensure 
compliance with the audit requirements.
    (e) During the course of the audit, the Administrator shall instruct 
the independent auditor to:
    (1) Inform the Office of Managing Director of any revisions to the 
final audit program or to the scope of the audit;
    (2) Notify the Office of Managing Director of any meetings with the 
Administrator in which audit findings are discussed; and
    (3) Submit to the Chief of the Wireline Competition Bureau any 
accounting or rule interpretations necessary to complete the audit.
    (f) Within 105 calendar days after the end of the audit period, but 
prior to discussing the audit findings with the Administrator, the 
independent auditor shall be instructed by the Administrator to submit a 
draft of the audit report to the Office of Managing Director Audit 
Staff.
    (g) The Office of Managing Director shall review the audit findings 
and audit workpapers and offer its recommendations concerning the 
conduct of the audit or the audit findings to the independent auditor. 
Exceptions of the Office of Managing Director to the findings and 
conclusions of the independent auditor that remain unresolved shall be 
included in the final audit report.
    (h) Within fifteen (15) calendar days after receiving the Office of 
Managing Director's recommendations and making any revisions to the 
audit report, the Administrator shall instruct the independent auditor 
to submit the audit report to the Administrator for its response to the 
audit findings. At this time the auditor also must send copies of its 
audit findings to the Office of Managing Director. The Administrator 
shall provide the independent auditor time to perform additional audit 
work recommended by the Office of Managing Director.
    (i) Within thirty (30) calendar days after receiving the audit 
report, the Administrator shall respond to the audit findings and send 
copies of its response to the Office of Managing Director. The 
Administrator shall instruct the independent auditor that any reply that 
the independent auditor wishes to make to the Administrator's responses 
shall be sent to the Office of Managing Director as well as the 
Administrator. The Administrator's response and the independent 
auditor's replies shall be included in the final audit report;
    (j) Within ten (10) calendar days after receiving the response of 
the Administrator, the independent auditor shall file with the 
Commission the final audit report.
    (k) Based on the final audit report, the Managing Director may take 
any action necessary to ensure that the universal service support 
mechanisms

[[Page 218]]

operate in a manner consistent with the requirements of this part, as 
well as such other action as is deemed necessary and in the public 
interest.

[67 FR 13227, Mar. 21, 2002, as amended at 68 FR 18907, Apr. 17, 2003; 
71 FR 38267, July 6, 2006; 77 FR 71712, Dec. 4, 2012]



        Subpart I_Review of Decisions Issued by the Administrator



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

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

[63 FR 70577, Dec. 21, 1998]



Sec. 54.720  Filing deadlines.

    (a) An affected party requesting review of an Administrator decision 
by the Commission pursuant to Sec. 54.719(c), shall file such a request 
within sixty (60) days of the issuance of the decision by a division or 
Committee of the Board of the Administrator.
    (b) An affected party requesting review of a division decision by a 
Committee of the Board pursuant to Sec. 54.719(a), shall file such 
request within sixty (60) days of issuance of the decision by the 
division.
    (c) An affected party requesting review by the Board of Directors 
pursuant to Sec. 54.719(b) regarding a billing, collection, or 
disbursement matter that falls outside the jurisdiction of the 
Committees of the Board shall file such request within sixty (60) days 
of issuance of the Administrator's decision.
    (d) The filing of a request for review with a Committee of the Board 
under Sec. 54.719(a) or with the full Board under Sec. 54.719(b), 
shall toll the time period for seeking review from the Federal 
Communications Commission. Where the time for filing an appeal has been 
tolled, the party that filed the request for review from a Committee of 
the Board or the full Board shall have sixty (60) days from the date the 
Committee or the Board issues a decision to file an appeal with the 
Commission.
    (e) In all cases of requests for review filed under Sec. 54.719, 
the request for review shall be deemed filed on the postmark date. If 
the postmark date cannot be determined, the applicant must file a sworn 
affidavit stating the date that the request for review was mailed.
    (f) Parties shall adhere to the time periods for filing oppositions 
and replies set forth in 47 CFR 1.45.

[63 FR 70577, Dec. 21, 1998, as amended at 68 FR 36943, June 20, 2003]



Sec. 54.721  General filing requirements.

    (a) Except as otherwise provided herein, a request for review of an 
Administrator decision by the Federal Communications Commission shall be 
filed with the Federal Communications Commission's Office of the 
Secretary in accordance with the general requirements set forth in part 
1 of this chapter. The request for review shall be captioned ``In the 
matter of Request for Review by (name of party seeking review) of 
Decision of Universal Service Administrator'' and shall reference the 
applicable docket numbers.
    (b) A request for review pursuant to Sec. 54.719(a) through (c) 
shall contain:
    (1) A statement setting forth the party's interest in the matter 
presented for review;
    (2) A full statement of relevant, material facts with supporting 
affidavits and documentation;
    (3) The question presented for review, with reference, where 
appropriate, to the relevant Federal Communications Commission rule, 
Commission order, or statutory provision;

[[Page 219]]

    (4) A statement of the relief sought and the relevant statutory or 
regulatory provision pursuant to which such relief is sought.
    (c) A copy of a request for review that is submitted to the Federal 
Communications Commission shall be served on the Administrator 
consistent with the requirement for service of documents set forth in 
Sec. 1.47 of this chapter.
    (d) If a request for review filed pursuant to Sec. 54.720(a) 
through (c) alleges prohibitive conduct on the part of a third party, 
such request for review shall be served on the third party consistent 
with the requirement for service of documents set forth in Sec. 1.47 of 
this chapter. The third party may file a response to the request for 
review. Any response filed by the third party shall adhere to the time 
period for filing replies set forth in Sec. 1.45 of this chapter and 
the requirement for service of documents set forth in Sec. 1.47 of this 
chapter.

[63 FR 70578, Dec. 21, 1998, as amended at 68 FR 36944, June 20, 2003]



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

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

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



Sec. 54.723  Standard of review.

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

[67 FR 13228, Mar. 21, 2002]



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

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

[67 FR 13228, Mar. 21, 2002]



Sec. 54.725  Universal service disbursements during pendency of a request for 

review and Administrator decision.

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

[[Page 220]]

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



     Subpart J_Interstate Access Universal Service Support Mechanism



Sec. 54.800  Terms and definitions.

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

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

Where:

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

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



Sec. 54.801  General.

    (a) The total amount of universal service support under this 
subpart, excluding administrative expenses, for areas served by price 
cap local exchange carriers as of June 30, 2000, is targeted to be $650 
million per year, if no exchanges, other than those offered for sale 
prior to January 1, 2000, are sold to non-price-cap local exchange 
carriers or purchased from non-price cap local exchange carriers by 
price cap local exchange carriers.
    (b) In the event that all or a portion of a study area served by a 
price cap

[[Page 221]]

local exchange carrier is sold to an entity other than a price cap local 
exchange carrier, and the study area or portion thereof was not offered 
for sale prior to January 1, 2000, then the support that would otherwise 
be provided under this subpart, had such study area or portion thereof 
not been sold, will not be distributed or collected. Subsequent 
calculations will use the last reported data for the study area or 
portion thereof that was sold to determine the amount that will not be 
distributed or collected.
    (c) In the event that a price cap local exchange carrier acquires 
additional exchanges, from an entity other than a price cap local 
exchange carrier, that acquisition should be reported to the 
Administrator pursuant to Sec. 54.802 and included in the determination 
of study area support pursuant to Sec. 54.806 for the areas served by 
the acquiring price cap LEC, beginning with the next support 
recalculation pursuant to Sec. 54.808.
    (d) In the event that a price cap local exchange carrier acquires 
additional exchanges from an entity that is also a price cap local 
exchange carrier, the acquiring price cap local exchange carrier will 
receive support under this subpart at the same level as the selling 
price cap local exchange carrier formerly received, and both carriers 
will adjust their line counts accordingly beginning with the next 
quarterly report to the Administrator. At the subsequent report to the 
Administrator for purposes of recalculating support as required by Sec. 
54.808, the acquiring and selling price cap local exchange carriers will 
reflect the acquired and sold lines, and will adjust the Average CMT 
Revenue per Line month for the affected study areas accordingly.
    (e) The Administrator for the fund created by this subpart shall be 
the Universal Service Administrative Company.
    (f) Beginning January 1, 2012, no incumbent or competitive eligible 
telecommunications carrier shall receive support pursuant to this 
subpart, nor shall any incumbent or competitive eligible 
telecommunications carrier be required to complete any filings pursuant 
to this subpart after March 31, 2012.

[65 FR 38690, June 21, 2000, as amended at 65 FR 57739, Sept. 26, 2000; 
76 FR 73877, Nov. 29, 2011]



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

    (a) Each Eligible Telecommunications Carrier that is providing 
service within an area served by a price cap local exchange carrier 
shall submit to the Administrator, on a quarterly basis on the last 
business day of March, June, September, and December of each year line 
count data showing the number of lines it serves for the period ending 
three months prior to the reporting date, within each price cap local 
exchange carrier study area disaggregated by UNE Zone if UNE Zones have 
been established within that study area, showing residential/single-line 
business and multi-line business line counts separately. For purposes of 
this report, and for purposes of computing support under this subpart, 
the aggregated residential/single-line business class lines reported 
include single and non-primary residential lines, single-line business 
lines, ISDN BRI and other related residential class lines. Similarly, 
the multi-line business class lines reported include multi-line 
business, centrex, ISDN PRI and other related business class lines 
assessed the End User Common Line charge pursuant to Sec. 69.152 of 
this chapter. For purposes of this report and for purposes of computing 
support under this subpart, lines served using resale of the price cap 
local exchange carrier's service pursuant to section 251(c)(4) of the 
Communications Act of 1934, as amended, shall be considered lines served 
by the price cap local exchange carrier only and must be reported 
accordingly.
    (b) In addition to the information submitted pursuant to paragraph 
(a) of this section, each price cap local exchange carrier must submit 
to the Administrator, on June 30, 2000, October 15, 2000, and April 16, 
2001 and annually thereafter or as determined by the Administrator 
according to Sec. 54.808:
    (1)(i) Average Price Cap CMT Revenue per Line month in a study area 
for each of its study areas;

[[Page 222]]

    (ii) The rates established for UNE Loops and UNE Line Ports, by zone 
in those study areas where UNE Zones have been established as of the 
date of filing; and
    (iii) Make available information sufficient to determine the 
boundaries of each UNE Zone within each of its study areas where such 
zones have been established;
    (2) Provided, however, that after the June 30, 2000 filing, if there 
have been no changes since its previous filing a company may submit a 
statement that there have been no changes in lieu of such information, 
and further provided that, for study areas in which UNE Zones have been 
newly established since the last filing pursuant to this paragraph, the 
price cap local exchange carrier shall also report the information 
required by paragraphs (b)(1)(ii) and (b)(1)(iii) of this section to the 
Administrator on July 15, 2000, or January 15, 2001, as required.
    (c) An eligible telecommunications carrier shall be eligible for 
support pursuant to this subpart only after it has filed all of the 
information required by paragraphs (a) through (c) of this section, 
where applicable. An eligible telecommunications carrier shall receive 
payment of support pursuant to this subpart only for such months the 
carrier is actually providing service to the end user. The Administrator 
shall ensure that there is periodic reconciliation of support payments.
    (d) Upon receiving the information required to be filed in 
paragraphs (a) and (b) of this section, the Administrator shall:
    (1) Perform the calculations described in Sec. Sec. 54.804 through 
54.807 of this subpart;
    (2) Publish the results of these calculations showing Interstate 
Access Universal Service Support Per Line available in each price cap 
local exchange carrier study area, by UNE Zone and customer class;
    (3) Collect the funds necessary to provide support pursuant to this 
subpart in accordance with subpart H;
    (4) Distribute support calculated pursuant to the rules contained in 
this subpart; and
    (5) Report quarterly to the Commission on the collection and 
distribution of funds under this subpart as described in Sec. 
54.701(g). Fund distribution reporting will be by state and by eligible 
telecommunications carrier within the state.

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



Sec. 54.803  Universal service zones.

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

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



Sec. 54.804  Preliminary minimum access universal service support for a study 

area calculated by the Administrator.

    (a) If Average Price Cap CMT Revenue per Line month is greater than 
$9.20 then: Preliminary Minimum Access Universal Service Support (for a 
study area) = Average Price Cap CMT Revenue per Line month in a study 
area * price cap local exchange carrier

[[Page 223]]

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

[65 FR 57740, Sept. 26, 2000]



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

Administrator.

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

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



Sec. 54.806  Calculation by the Administrator of interstate access universal 

service support for areas served by price cap local exchange carriers.

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

[[Page 224]]

greater than $75 million, then the Minimum Adjustment Amount (MAA) 
equals the MAA Phase In Percentage times the MD by study area times the 
ratio of $75 million to TNMD.
    (2) If the TNMD is less than $75 million, then the MAA equals the 
product of the MAA Phase In Percentage and the MD by study area.
    (g) Calculate the Minimum Support Requirement (MSR). The Minimum 
Support Requirement for a study area equals the PSAUSS plus the MAA.
    (h) Calculate the Total National Minimum Support Requirement 
(TNMSR), which equals the sum of the MSR for all study areas in which 
the Preliminary Minimum Access Universal Service Support is greater than 
or equal to the PSAUSS.
    (i) Calculate Study Area Access Universal Service Support (SAAUS) 
for a study area in which the price cap local exchange carrier has 
geographically deaveraged state-approved rates for UNE loops:
    (1) For study areas in which the Preliminary Minimum Access 
Universal Service Support is greater than PSAUSS, and within which the 
price cap local exchange carrier has established geographically 
deaveraged state-approved rates for UNE loops, the SAAUS for that study 
area is the MSR.
    (2) For study areas in which the Preliminary Minimum Access 
Universal Service Support is less than PSAUSS, and within which the 
price cap local exchange carrier has established geographically 
deaveraged state-approved rates for UNE loops, the SAAUS for that study 
area is equal to:
    PSAUSS * ($650 million - TNMSR) / (the sum of PSAUSS of study areas 
where the Preliminary Minimum Access Universal Service Support is less 
than PSAUSS).
    (j) Calculate Study Area Access Universal Service Support (SAAUS) 
for a price cap local exchange carrier that has not established 
geographically deaveraged state-approved rates for UNE loops. In such 
study areas, the SAAUS shall be the lesser of the Preliminary Minimum 
Access Universal Service Support or:
    (1) For study areas in which the Preliminary Minimum Access 
Universal Service Support is greater than PSAUSS, and for which an 
estimate has been made for deaveraged UNE loop costs, the SAAUS for that 
study area is the MSR.
    (2) For study areas in which the Preliminary Minimum Access 
Universal Service Support is less than PSAUSS, and for which an estimate 
has been made for deaveraged UNE loop costs, the SAAUS for that study 
area is equal to:
    PSAUSS * ($650 million - TNMSR) / (the sum of PSAUSS of study areas 
where the Preliminary Minimum Access Universal Service Support is less 
than PSAUSS).

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



Sec. 54.807  Interstate access universal service support.

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

[[Page 225]]

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

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



Sec. 54.808  Transition provisions and periodic calculation.

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

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



Sec. 54.809  Carrier certification.

    (a) Certification. Carriers that desire to receive support pursuant 
to Sec. 54.807 must file a certification with the Administrator and the 
Commission stating that all interstate access universal service support 
provided to such carrier will be used only for the provision, 
maintenance, and upgrading of facilities and services for which the 
support is intended. Support provided pursuant to Sec. 54.807 shall 
only be provided to the extent that the carrier has filed the requisite 
certification pursuant to this section.
    (b) Certification format. A certification pursuant to this section 
may be filed in the form of a letter from an authorized representative 
for the carrier, and must be filed with both the Office of the Secretary 
of the Commission clearly referencing CC Docket No. 96-45, and with the 
Administrator of the interstate access universal service support 
mechanism, on or before the filing

[[Page 226]]

deadlines set forth in paragraph (c) of this section. All of the 
certifications filed by carriers pursuant to this section shall become 
part of the public record maintained by the Commission.
    (c) Filing deadlines. In order for a price cap local exchange 
carrier or an eligible telecommunications carrier serving lines in the 
service area of a price cap local exchange carrier to receive interstate 
access universal service support, such carrier shall file an annual 
certification, as described in paragraph (b) of this section, on the 
date that it first files its line count information pursuant to Sec. 
54.802, and thereafter on June 30 of each year. Such carrier that files 
its line count information after the June 30 deadline shall receive 
support pursuant to the following schedule:
    (1) Carriers that file no later than September 30 shall receive 
support for the fourth quarter of that year and the first and second 
quarters of the subsequent year.
    (2) Carriers that file no later than December 31 shall receive 
support for the first and second quarters of the subsequent year.
    (3) Carriers that file no later than March 31 of the subsequent year 
shall receive support for the second quarter of the subsequent year.

[65 FR 38690, June 21, 2000; 65 FR 57740, Sept. 26, 2000, as amended at 
70 FR 29979, May 25, 2005]



 Subpart K_Interstate Common Line Support Mechanism for Rate-of-Return 

                                Carriers

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



Sec. 54.901  Calculation of Interstate Common Line Support.

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

[[Page 227]]

and single-line business lines served by the rate-of-return carrier in 
the disaggregation zone or undisaggregated study area, then:
    (A) Interstate Common Line Support per Multi-Line Business Line = 
(Average Interstate Common Line Support - $2.70 x residential and 
single-line business lines served by the rate-of-return carrier) / 
(total lines served by the rate-of-return carrier); and
    (B) Interstate Common Line Support per Residential and Single-Line 
Business Line = Interstate Common Line Support per Multi-Line Business 
Line + $2.70.
    (ii) If the Average Interstate Common Line Support is less than or 
equal to $2.70 multiplied by residential and single-line business lines 
served by the rate-of-return carrier in the disaggregation zone or 
undisaggregated study area, but greater than $0, then:
    (A) Interstate Common Line Support per Multi-Line Business Line = 
$0; and
    (B) Interstate Common Line Support per Residential and Single-Line 
Business Line = Average Interstate Common Line Support / residential and 
single line business lines served by the rate-of-return carrier.
    (iii) If the Average Interstate Common Line Support is equal to $0, 
then the competitive eligible telecommunications carrier shall receive 
no Interstate Common Line Support for lines served in that 
disaggregation zone or undisaggregated study area.
    (4) Beginning January 1, 2012, competitive eligible 
telecommunications carriers shall not receive Interstate Common Line 
Support pursuant to this subpart and will instead receive support 
consistent with Sec. 54.307(e).
    (c) Beginning January 1, 2012, for purposes of calculating the 
amount of Interstate Common Line Support determined pursuant to 
paragraph (a) of this section that a non-price cap carrier may receive, 
the corporate operations expense allocated to the Common Line Revenue 
Requirement, pursuant to Sec. 69.409 of this chapter, shall be limited 
to the lesser of:
    (1) The actual average monthly per-loop corporate operations 
expense; or
    (2) The portion of the monthly per-loop amount computed pursuant to 
Sec. 36.621(a)(4)(iii) of this chapter that would be allocated to the 
interstate Common Line Revenue Requirement pursuant to Sec. 69.409 of 
this chapter.
    (d) Support After December 31, 2011. Notwithstanding paragraph (a) 
of this section, beginning January 1, 2012, no carrier that is a rate-
of-return carrier, as that term is defined in Sec. 54.5 affiliated with 
a price cap local exchange carrier, as that term is defined in Sec. 
61.3(aa) of this chapter, shall receive support under this subpart.

[66 FR 59728, Nov. 30, 2001, as amended at 76 FR 73877, Nov. 29, 2011; 
78 FR 26269, May 6, 2013]



Sec. 54.902  Calculation of Interstate Common Line Support for transferred 

exchanges.

    (a) In the event that a rate-of-return carrier acquires exchanges 
from an entity that is also a rate-of-return carrier, Interstate Common 
Line Support for the transferred exchanges shall be distributed as 
follows.
    (1) Each carrier may report its updated line counts to reflect the 
transfer in the next quarterly line count filing pursuant to Sec. 
54.903(a)(1) that applies to the period in which the transfer occurred. 
During a transition period from the filing of the updated line counts 
until the end of the funding year, the Administrator shall adjust the 
Interstate Common Line Support received by each carrier based on the 
updated line counts and the per-line Interstate Common Line Support, 
categorized by customer class and, if applicable, disaggregation zone, 
of the selling carrier. If the acquiring carrier does not file a 
quarterly update of its line counts, it will not receive Interstate 
Common Line Support for those lines during the transition period.
    (2) Each carrier's projected data for the following funding year 
filed pursuant to Sec. 54.903(a)(3) shall reflect the transfer of 
exchanges.
    (3) Each carrier's actual data filed pursuant to Sec. 54.903(a)(4) 
shall reflect the transfer of exchanges. All post-transaction Interstate 
Common Line Support shall be subject to true up by the Administrator 
pursuant to Sec. 54.903(b)(3).
    (b) In the event that a rate-of-return carrier acquires exchanges 
from a price cap carrier that are incorporated into

[[Page 228]]

one of the rate-of-return carrier's existing study areas, Interstate 
Common Line Support for the transferred exchanges shall be distributed 
as follows.
    (1) The acquiring carrier may report its updated line counts for the 
study area into which the acquired lines are incorporated in the next 
quarterly line count filing pursuant to Sec. 54.903(a)(1) that applies 
to the period in which the transfer occurred. During a transition period 
from the filing of the updated line counts until the end of the funding 
year, the Administrator shall adjust the Interstate Common Line Support 
received by the acquiring carrier based on the updated line counts and 
the per-line amounts Interstate Common Line Support for the study area 
served by the acquiring carrier. If necessary, the Administrator shall 
develop an average per-line support amount to reflect various per-line 
amounts in multiple disaggregation zones served by the acquiring 
carrier. If the acquiring carrier does not file a quarterly update of 
its line counts, it will not receive Interstate Common Line Support for 
those lines during the transition period.
    (2) The acquiring carrier's projected data for the following funding 
year filed pursuant to Sec. 54.903(a)(3) shall reflect the transfer of 
exchanges.
    (3) The acquiring carrier's actual data filed pursuant to Sec. 
54.903(a)(4) shall reflect the transfer of exchanges. All post-
transaction Interstate Common Line Support shall be subject to true up 
by the Administrator pursuant to Sec. 54.903(b)(3).
    (c) In the event that a rate-of-return carrier acquires exchanges 
from a price cap carrier that are not incorporated into one of the rate-
of-return carrier's existing study areas, Interstate Common Line Support 
for the transferred exchanges shall be distributed as follows.
    (1) The acquiring rate-of-return may submit to the Administrator a 
projected Interstate Common Line Revenue Requirement for the acquired 
exchanges for the remainder of the funding year in the next quarterly 
report to the Administrator. The Administrator shall distribute 
Interstate Common Line Support pursuant to the partial year projected 
Interstate Common Line Revenue Requirement for the remainder of the 
funding year. If the acquiring carrier does not file a projected 
Interstate Common Line Revenue Requirement, it will not receive 
Interstate Common Line Support for those exchanges during the transition 
period.
    (2) The acquiring carrier's projected data for the following funding 
year filed pursuant to Sec. 54.903(a)(3) shall reflect the transfer of 
exchanges.
    (3) The acquiring carrier's actual data filed pursuant to Sec. 
54.903(a)(4) shall reflect the transfer of exchanges. All post-
transaction Interstate Common Line Support shall be subject to true up 
by the Administrator pursuant to Sec. 54.903(b)(3)
    (d) In the event that an entity other than a rate-of-return carrier 
acquires exchanges from a rate-of-return carrier, per-line Interstate 
Common Line Support will not transfer.
    (e) This section does not alter any Commission rule governing the 
sale or transfer of exchanges, including the definition of ``study 
area'' in part 36.

[66 FR 59728, Nov. 30, 2001, as amended at 68 FR 31623, May 28, 2003]



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

    (a) To be eligible for Interstate Common Line Support, each rate-of-
return carrier shall make the following filings with the Administrator.
    (1) On April 18, 2002, each rate-of-return carrier shall submit to 
the Administrator the number of lines it serves as of September 30, 
2001, within each rate-of-return carrier study area, by disaggregation 
zone if disaggregation zones have been established within that study 
area pursuant to Sec. 54.315, showing residential and single-line 
business line counts and multi-line business line counts separately. For 
purposes of this report, and for purposes of computing support under 
this subpart, the residential and single-line business class lines 
reported include lines assessed the residential and single-line business 
End User Common Line charge pursuant to Sec. 69.104 of this chapter, 
and the multi-line business class lines reported include lines assessed 
the multi-line business End User Common Line charge pursuant to Sec. 
69.104 of this chapter. For purposes of

[[Page 229]]

this report, and for purposes of computing support under this subpart, 
lines served using resale of the rate-of-return local exchange carrier's 
service pursuant to section 251(c)(4) of the Communications Act of 1934, 
as amended, shall be considered lines served by the rate-of-return 
carrier only and must be reported accordingly. Beginning July 31, 2002, 
each rate-of-return carrier shall submit the information described in 
this paragraph in accordance with the schedule in Sec. 36.611 of this 
chapter.
    (2) A rate-of-return carrier may submit the information in paragraph 
(a) of this section in accordance with the schedule in Sec. 36.612 of 
this chapter, even if it is not required to do so. If a rate-of-return 
carrier makes a filing under this paragraph, it shall separately 
indicate any lines that it has acquired from another carrier that it has 
not previously reported pursuant to paragraph (a) of this section, 
identified by customer class and the carrier from which the lines were 
acquired.
    (3) Each rate-of-return carrier shall submit to the Administrator 
annually on March 31st projected data necessary to calculate the 
carrier's prospective Interstate Common Line Support, including common 
line cost and revenue data, for each of its study areas in the upcoming 
funding year. The funding year shall be July 1st of the current year 
through June 30th of the next year. Each rate-of-return carrier will be 
permitted to submit a correction to the projected data filed on March 
31st until June 30th for the upcoming funding year. On June 30th each 
rate-of-return carrier will be permitted to submit to the Administrator 
an update to the projected data for the funding year ending on that 
date.
    (4) Each rate-of-return carrier shall submit to the Administrator on 
December 31st of each year the data necessary to calculate a carrier's 
Interstate Common Line Support, including common line cost and revenue 
data, for the prior calendar year. Such data shall be used by the 
Administrator to make adjustments to monthly per-line Interstate Common 
Line Support amounts in the final two quarters of the following calendar 
year to the extent of any differences between the carrier's ICLS 
received based on projected common line cost and revenue data and the 
ICLS for which the carrier is ultimately eligible based on its actual 
common line cost and revenue data during the relevant period.
    (b) Upon receiving the information required to be filed in paragraph 
(a) of this section, the Administrator shall:
    (1) Perform the calculations described in Sec. 54.901;
    (2) Publish the results of these calculations showing Interstate 
Common Line Support Per Line available in each rate-of-return carrier 
study area, by Disaggregation Zone and customer class;
    (3) Perform periodic reconciliation of the Interstate Common Line 
Support provided to each carrier based on projected data filed pursuant 
to paragraph (a)(3) of this section and the Interstate Common Line 
Support for which each carrier is eligible based on actual data filed 
pursuant to paragraph (a)(4) of this section.
    (4) Collect the funds necessary to provide support pursuant to this 
subpart in accordance with subpart H of this part;
    (5) Distribute support calculated pursuant to the rules contained in 
this subpart; and
    (6) Report quarterly to the Commission on the collection and 
distribution of funds under this subpart as described in Sec. 
54.702(i). Fund distribution reporting will be by state and by eligible 
telecommunications carrier within the state.

[66 FR 59728, Nov. 30, 2001, as amended at 67 FR 15493, Apr. 2, 2002; 67 
FR 19809, Apr. 23, 2002; 68 FR 31623, May 28, 2003; 77 FR 14303, Mar. 9, 
2012]



Sec. 54.904  Carrier certification.

    (a) Certification. Carriers that desire to receive support pursuant 
to this subpart shall file a certification with the Administrator and 
the Federal Communications Commission stating that all Interstate Common 
Line Support provided to such carrier will be used only for the 
provision, maintenance, and upgrading of facilities and services for 
which the support is intended. Support provided pursuant to this subpart 
shall only be provided to the extent

[[Page 230]]

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



                         Subpart L_Mobility Fund

    Source: 76 FR 73877, Nov. 29, 2011, unless otherwise noted.



Sec. 54.1001  Mobility Fund--Phase I.

    The Commission will use competitive bidding, as provided in part 1, 
subpart AA, of this chapter, to determine the recipients of support 
available through Phase I of the Mobility Fund and the amount(s) of 
support that they may receive for specific geographic areas, subject to 
applicable post-auction procedures.



Sec. 54.1002  Geographic areas eligible for support.

    (a) Mobility Fund Phase I support may be made available for census 
blocks identified as eligible by public notice.
    (b) Except as provided in Sec. 54.1004, coverage units for purposes 
of conducting competitive bidding and disbursing support based on 
designated road miles will be identified by public notice for each 
census block eligible for support.



Sec. 54.1003  Provider eligibility.

    (a) Except as provided in Sec. 54.1004, an applicant shall be an 
Eligible Telecommunications Carrier in an area in order to receive 
Mobility Fund Phase I support for that area. The applicant's designation 
as an Eligible Telecommunications Carrier may be conditional subject to 
the receipt of Mobility Fund support.
    (b) An applicant shall have access to spectrum in an area that 
enables it to satisfy the applicable performance requirements in order 
to receive Mobility Fund Phase I support for that area. The applicant 
shall certify, in a form acceptable to the Commission, that it has 
received any Commission approvals necessary for such access at the time 
it applies to participate in competitive bidding and at the time that it 
applies for support and that it will retain such access for five (5) 
years after the date on which it is authorized to receive support. 
Pending requests for such approvals are not sufficient to satisfy this 
requirement.
    (c) An applicant shall certify that it is financially and 
technically qualified to provide the services supported by Mobility Fund 
Phase I in order to receive such support.

[76 FR 73877, Nov. 29, 2011, as amended at 77 FR 14303, Mar. 9, 2012]

    Effective Date Note: At 77 FR 14303, Mar. 9, 2012, Sec. 54.1003, 
paragraph (b) was revised. This paragraph contains information and 
recordkeeping requirements and will not become effective until approval 
has been given by the Office of Management and Budget.



Sec. 54.1004  Service to Tribal Lands.

    (a) A Tribally-owned or -controlled entity that has pending an 
application to be designated an Eligible Telecommunications Carrier may 
participate in any Mobility Fund Phase I auction, including any auction 
for support solely in Tribal lands, by bidding for support in areas 
located within the boundaries of the Tribal land associated with the 
Tribe that owns or controls the entity. To bid on this basis, an entity 
shall certify that it is a Tribally-owned or -controlled entity and 
identify the applicable Tribe and Tribal lands in its application to 
participate in the competitive bidding. A Tribally-owned or -controlled 
entity

[[Page 231]]

shall receive Mobility Fund Phase I support only after it has become an 
Eligible Telecommunications Carrier.
    (b) In any auction for support solely in Tribal lands, coverage 
units for purposes of conducting competitive bidding and disbursing 
support based on designated population will be identified by public 
notice for each census block eligible for support.
    (c) Tribally-owned or -controlled entities may receive a bidding 
credit with respect to bids for support within the boundaries of 
associated Tribal lands. To qualify for a bidding credit, an applicant 
shall certify that it is a Tribally-owned or -controlled entity and 
identify the applicable Tribe and Tribal lands in its application to 
participate in the competitive bidding. An applicant that qualifies 
shall have its bid(s) for support in areas within the boundaries of 
Tribal land associated with the Tribe that owns or controls the 
applicant reduced by twenty-five (25) percent or purposes of determining 
winning bidders without any reduction in the amount of support 
available.
    (d) A winning bidder for support in Tribal lands shall notify and 
engage the Tribal governments responsible for the areas supported.
    (1) A winning bidder's engagement with the applicable Tribal 
government shall consist, at a minimum, of discussion regarding:
    (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.
    (2) A winning bidder shall notify the appropriate Tribal government 
of its winning bid no later than five (5) business days after being 
identified by public notice as a winning bidder.
    (3) A winning bidder shall certify in its application for support 
that it has substantively engaged appropriate Tribal officials regarding 
the issues specified in Sec. 54.1004(d)(1), at a minimum, as well as 
any other issues specified by the Commission, and provide a summary of 
the results of such engagement. A copy of the certification and summary 
shall be sent to the appropriate Tribal officials when it is sent to the 
Commission.
    (4) A winning bidder for support in Tribal lands shall certify in 
its annual report, pursuant to Sec. 54.1009(a)(5), and prior to 
disbursement of support, pursuant to Sec. 54.1008(c), that it has 
substantively engaged appropriate Tribal officials regarding the issues 
specified in Sec. 54.1004(d)(1), at a minimum, as well as any other 
issues specified by the Commission, and provide a summary of the results 
of such engagement. A copy of the certification and summary shall be 
sent to the appropriate Tribal officials when it is sent to the 
Commission.



Sec. 54.1005  Application process.

    (a) Application to participate in competitive bidding for Mobility 
Fund Phase I support. In addition to providing information specified in 
Sec. 1.21001(b) of this chapter and any other information required by 
the Commission, an applicant to participate in competitive bidding for 
Mobility Fund Phase I support also shall:
    (1) Provide ownership information as set forth in Sec. 1.2112(a) of 
this chapter;
    (2) Certify that the applicant is financially and technically 
capable of meeting the public interest obligations of Sec. 54.1006 in 
each area for which it seeks support;
    (3) Disclose its status as an Eligible Telecommunications Carrier in 
any area for which it will seek support or as a Tribal entity with a 
pending application to become an Eligible Telecommunications Carrier in 
any such area, and certify that the disclosure is accurate;
    (4) Describe the spectrum access that the applicant plans to use to 
meet obligations in areas for which it will bid for support, including 
whether the applicant currently holds a license for or leases the 
spectrum, and certify that the description is accurate and that the 
applicant will retain such access for at least five (5) years after the 
date on which it is authorized to receive support;

[[Page 232]]

    (5) Certify that it will not bid on any areas in which it has made a 
public commitment to deploy 3G or better wireless service by December 
31, 2012; and
    (6) Make any applicable certifications required in Sec. 54.1004.
    (b) Application by winning bidders for Mobility Fund Phase I 
support.--(1) Deadline. Unless otherwise provided by public notice, 
winning bidders for Mobility Fund Phase I support shall file an 
application for Mobility Fund Phase I support no later than 10 business 
days after the public notice identifying them as winning bidders.
    (2) Application contents.--(i) Identification of the party seeking 
the support, including ownership information as set forth in Sec. 
1.2112(a) of this chapter.
    (ii) Certification that the applicant is financially and technically 
capable of meeting the public interest obligations of Sec. 54.1006 in 
the geographic areas for which it seeks support.
    (iii) Proof of the applicant's status as an Eligible 
Telecommunications Carrier or as a Tribal entity with a pending 
application to become an Eligible Telecommunications Carrier in any area 
for which it seeks support and certification that the proof is accurate.
    (iv) A description of the spectrum access that the applicant plans 
to use to meet obligations in areas for which it is the winning bidder 
for support, including whether the applicant currently holds a license 
for or leases the spectrum, and a certification that the description is 
accurate and that the applicant will retain such access for at least 
five (5) years after the date on which it is authorized to receive 
support.
    (v) A detailed project description that describes the network, 
identifies the proposed technology, demonstrates that the project is 
technically feasible, discloses the budget and describes each specific 
phase of the project, e.g., network design, construction, deployment, 
and maintenance. The applicant shall indicate whether the supported 
network will provide third generation (3G) mobile service within the 
period prescribed by Sec. 54.1006(a) or fourth generation (4G) mobile 
service within the period prescribed by Sec. 54.1006(b).
    (vi) Certifications that the applicant has available funds for all 
project costs that exceed the amount of support to be received from 
Mobility Fund Phase I and that the applicant will comply with all 
program requirements.
    (vii) Any guarantee of performance that the Commission may require 
by public notice or other proceedings, including but not limited to the 
letters of credit required in Sec. 54.1007, or a written commitment 
from an acceptable bank, as defined in Sec. 54.1007(a)(1), to issue 
such a letter of credit.
    (viii) Certification that the applicant will offer service in 
supported areas at rates that are within a reasonable range of rates for 
similar service plans offered by mobile wireless providers in urban 
areas for a period extending until five (5) years after the date on 
which it is authorized to receive support.
    (ix) Any applicable certifications and showings required in Sec. 
54.1004.
    (x) Certification that the party submitting the application is 
authorized to do so on behalf of the applicant.
    (xi) Such additional information as the Commission may require.
    (3) Application processing. (i) No application will be considered 
unless it has been submitted in an acceptable form during the period 
specified by public notice. No applications submitted or demonstrations 
made at any other time shall be accepted or considered.
    (ii) Any application that, as of the submission deadline, either 
does not identify the applicant seeking support as specified in the 
public notice announcing application procedures or does not include 
required certifications shall be denied.
    (iii) An applicant may be afforded an opportunity to make minor 
modifications to amend its application or correct defects noted by the 
applicant, the Commission, the Administrator, or other parties. Minor 
modifications include correcting typographical errors in the application 
and supplying non-material information that was inadvertently omitted or 
was not available at the time the application was submitted.
    (iv) Applications to which major modifications are made after the 
deadline for submitting applications shall

[[Page 233]]

be denied. Major modifications include, but are not limited to, any 
changes in the ownership of the applicant that constitute an assignment 
or change of control, or the identity of the applicant, or the 
certifications required in the application.
    (v) After receipt and review of the applications, a public notice 
shall identify each winning bidder that may be authorized to receive 
Mobility Fund Phase I support after the winning bidder submits a Letter 
of Credit and an accompanying opinion letter as required by Sec. 
54.1007, in a form acceptable to the Commission, and any final 
designation as an Eligible Telecommunications Carrier that any Tribally-
owned or -controlled applicant may still require. Each such winning 
bidder shall submit a Letter of Credit and an accompanying opinion 
letter as required by Sec. 54.1007, in a form acceptable to the 
Commission, and any required final designation as an Eligible 
Telecommunications Carrier no later than 10 business days following the 
release of the public notice.
    (vi) After receipt of all necessary information, a public notice 
will identify each winning bidder that is authorized to receive Mobility 
Fund Phase I support.



Sec. 54.1006  Public interest obligations.

    (a) Deadline for construction--3G networks. A winning bidder 
authorized to receive Mobility Fund Phase I support that indicated in 
its application that it would provide third generation (3G) service on 
the supported network shall, no later than two (2) years after the date 
on which it was authorized to receive support, submit data from drive 
tests covering the area for which support was received demonstrating 
mobile transmissions supporting voice and data to and from the network 
covering 75% of the designated coverage units in the area deemed 
uncovered, or a higher percentage established by Public Notice prior to 
the competitive bidding, and meeting or exceeding the following:
    (1) Outdoor minimum data transmission rates of 50 kbps uplink and 
200 kbps downlink at vehicle speeds appropriate for the roads covered;
    (2) Transmission latency low enough to enable the use of real time 
applications, such as VoIP.
    (b) Deadline for construction--4G networks. A winning bidder 
authorized to receive Mobility Fund Phase I support that indicated in 
its application that it would provide fourth generation (4G) service on 
the supported network shall, no later than three (3) years after the 
date on which it was authorized to receive support, submit data from 
drive tests covering the area for which support was received 
demonstrating mobile transmissions supporting voice and data to and from 
the network covering 75% of the designated coverage units in the area 
deemed uncovered, or an applicable higher percentage established by 
public notice prior to the competitive bidding, and meeting or exceeding 
the following:
    (1) Outdoor minimum data transmission rates of 200 kbps uplink and 
768 kbps downlink at vehicle speeds appropriate for the roads covered;
    (2) Transmission latency low enough to enable the use of real time 
applications, such as VoIP.
    (c) Coverage test data. Drive tests submitted in compliance with a 
recipient's public interest obligations shall cover roads designated in 
the public notice detailing the procedures for the competitive bidding 
that is the basis of the recipient's support. Scattered site tests 
submitted in compliance with a recipient's public interest obligations 
shall be in compliance with standards set forth in the public notice 
detailing the procedures for the competitive bidding that is the basis 
of the recipient's authorized support.
    (d) Collocation obligations. During the period when a recipient 
shall file annual reports pursuant to Sec. 54.1009, the recipient shall 
allow for reasonable collocation by other providers of services that 
would meet the technological requirements of Mobility Fund Phase I on 
newly constructed towers that the recipient owns or manages in the area 
for which it receives support. In addition, during this period, the 
recipient may not enter into facilities access arrangements that 
restrict any party to the arrangement from allowing others to collocate 
on the facilities.

[[Page 234]]

    (e) Voice and data roaming obligations. During the period when a 
recipient shall file annual reports pursuant to Sec. 54.1009, the 
recipient shall comply with the Commission's voice and data roaming 
requirements that were in effect as of October 27, 2011, on networks 
that are built through Mobility Fund Phase I support.
    (f) Liability for failing to satisfy public interest obligations. A 
winning bidder authorized to receive Mobility Fund Phase I support that 
fails to comply with the public interest obligations in this paragraph 
or any other terms and conditions of the Mobility Fund Phase I support 
will be subject to repayment of the support disbursed together with an 
additional performance default payment. Such a winning bidder may be 
disqualified from receiving Mobility Fund Phase I support or other USF 
support. The additional performance default amount will be a percentage 
of the Mobility Fund Phase I support that the winning bidder has been 
and is eligible to request be disbursed to it pursuant to Sec. 54.1008. 
The percentage will be determined as specified in the public notice 
detailing competitive bidding procedures prior to the commencement of 
competitive bidding. The percentage will not exceed twenty percent.



Sec. 54.1007  Letter of credit.

    (a) Before being authorized to receive Mobility Fund Phase I 
support, a winning bidder shall obtain an irrevocable standby letter of 
credit which shall be acceptable in all respects to the Commission. Each 
winning bidder authorized to receive Mobility Fund Phase I support shall 
maintain its standby letter of credit or multiple standby letters of 
credit in an amount equal to the amount of Mobility Fund Phase I support 
that the winning bidder has been and is eligible to request be disbursed 
to it pursuant to Sec. 54.1008 plus the additional performance default 
amount described in Sec. 54.1006(f), until at least 120 days after the 
winning bidder receives its final distribution of support pursuant to 
Sec. 54.1008(b)(3).
    (1) The bank issuing the letter of credit shall be acceptable to the 
Commission. A bank that is acceptable to the Commission is
    (i) Any United States Bank that
    (A) Is among the 50 largest United States banks, determined on the 
basis of total assets as of the end of the calendar year immediately 
preceding the issuance of the letter of credit,
    (B) Whose deposits are insured by the Federal Deposit Insurance 
Corporation, and
    (C) Who has a long-term unsecured credit rating issued by Standard & 
Poor's of A- or better (or an equivalent rating from another nationally 
recognized credit rating agency); or
    (ii) Any non-U.S. bank that
    (A) Is among the 50 largest non-U.S. banks in the world, determined 
on the basis of total assets as of the end of the calendar year 
immediately preceding the issuance of the letter of credit (determined 
on a U.S. dollar equivalent basis as of such date),
    (B) Has a branch office in the District of Columbia or such other 
branch office agreed to by the Commission,
    (C) Has a long-term unsecured credit rating issued by a widely-
recognized credit rating agency that is equivalent to an A- or better 
rating by Standard & Poor's, and
    (D) Issues the letter of credit payable in United States dollars.
    (2) [Reserved]
    (b) A winning bidder for Mobility Fund Phase I support shall provide 
with its Letter of Credit an opinion letter from its legal counsel 
clearly stating, subject only to customary assumptions, limitations, and 
qualifications, that in a proceeding under Title 11 of the United States 
Code, 11 U.S.C. 101 et seq. (the ``Bankruptcy Code''), the bankruptcy 
court would not treat the letter of credit or proceeds of the letter of 
credit as property of the winning bidder's bankruptcy estate under 
section 541 of the Bankruptcy Code.
    (c) Authorization to receive Mobility Fund Phase I support is 
conditioned upon full and timely performance of all of the requirements 
set forth in Sec. 54.1006 and any additional terms and conditions upon 
which the support was granted.
    (1) Failure by a winning bidder authorized to receive Mobility Fund 
Phase I support to comply with any of the requirements set forth in 
Sec. 54.1006 or any other term or conditions upon which support was 
granted, or its loss

[[Page 235]]

of eligibility for any reason for Mobility Fund Phase I support, will be 
deemed an automatic performance default, will entitle the Commission to 
draw the entire amount of the letter of credit, and may disqualify the 
winning bidder from the receipt of Mobility Fund Phase I support or 
additional USF support.
    (2) A performance default will be evidenced by a letter issued by 
the Chief of either the Wireless Bureau or Wireline Bureau or their 
respective designees, which letter, attached to a standby letter of 
credit draw certificate, shall be sufficient for a draw on the standby 
letter of credit for the entire amount of the standby letter of credit.



Sec. 54.1008  Mobility Fund Phase I disbursements.

    (a) A winning bidder for Mobility Fund Phase I support will be 
advised by public notice whether it has been authorized to receive 
support. The public notice will detail how disbursement will be made 
available.
    (b) Mobility Fund Phase I support will be available for disbursement 
to authorized winning bidders in three stages.
    (1) One-third of the total possible support, if coverage were to be 
extended to 100 percent of the units deemed unserved in the geographic 
area, when the winning bidder is authorized to receive support.
    (2) One-third of the total possible support with respect to a 
specific geographic area when the recipient demonstrates coverage of 50 
percent of the coverage requirements of Sec. 54.1006(a) or (b), as 
applicable.
    (3) The remainder of the total support, based on the final total 
units covered, when the recipient demonstrates coverage meeting the 
requirements of Sec. 54.1006(a) or (b), as applicable.
    (c) A recipient accepting a final disbursement for a specific 
geographic area based on coverage of less than 100 percent of the units 
in the area previously deemed unserved waives any claim for the 
remainder of potential Mobility Fund Phase I support with respect to 
that area.
    (d) Prior to each disbursement request, a winning bidder for support 
in a Tribal land will be required to certify that it has substantively 
engaged appropriate Tribal officials regarding the issues specified in 
Sec. 54.1004(d)(1), at a minimum, as well as any other issues specified 
by the Commission and to provide a summary of the results of such 
engagement.
    (e) Prior to each disbursement request, a winning bidder will be 
required to certify that it is in compliance with all requirements for 
receipt of Mobility Fund Phase I support at the time that it requests 
the disbursement.



Sec. 54.1009  Annual reports.

    (a) A winning bidder authorized to receive Mobility Fund Phase I 
support shall submit an annual report no later than July 1 in each year 
for the five years after it was so authorized. Each annual report shall 
include the following, or reference the inclusion of the following in 
other reports filed with the Commission for the applicable year:
    (1) Electronic Shapefiles site coverage plots illustrating the area 
newly reached by mobile services at a minimum scale of 1:240,000;
    (2) A list of relevant census blocks previously deemed unserved, 
with road miles and total resident population and resident population 
residing in areas newly reached by mobile services (based on Census 
Bureau data and estimates);
    (3) If any such testing has been conducted, data received or used 
from drive tests, or scattered site testing in areas where drive tests 
are not feasible, analyzing network coverage for mobile services in the 
area for which support was received;
    (4) Certification that the applicant offers service in supported 
areas at rates that are within a reasonable range of rates for similar 
service plans offered by mobile wireless providers in urban areas;
    (5) Any applicable certifications and showings required in Sec. 
54.1004; and
    (6) Updates to the information provided in Sec. 54.1005(b)(2)(v).
    (b) The party submitting the annual report must certify that they 
have been authorized to do so by the winning bidder.

[[Page 236]]

    (c) Each annual report shall be submitted to the Office of the 
Secretary of the Commission, clearly referencing WT Docket No. 10-208; 
the Administrator; and the relevant state commissions, relevant 
authority in a U.S. Territory, or Tribal governments, as appropriate.

[76 FR 73877, Nov. 29, 2011, as amended at 77 FR 30915, May 24, 2012]



Sec. 54.1010  Record retention for Mobility Fund Phase I.

    A winning bidder authorized to receive Mobility Fund Phase I support 
and its agents are required to retain any documentation prepared for, or 
in connection with, the award of Mobility Fund Phase I support for a 
period of not less than ten (10) years after the date on which the 
winning bidder receives its final disbursement of Mobility Fund Phase I 
support.



PART 59_INFRASTRUCTURE SHARING--Table of Contents



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

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

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



Sec. 59.1  General duty.

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



Sec. 59.2  Terms and conditions of infrastructure sharing.

    (a) An incumbent local exchange carrier subject to the requirements 
of section 59.1 shall not be required to take any action that is 
economically unreasonable or that is contrary to the public interest.
    (b) An incumbent local exchange carrier subject to the requirements 
of section 59.1 may, but shall not be required to, enter into joint 
ownership or operation of public switched network infrastructure, 
technology, information and telecommunications facilities and functions 
and services with a qualifying carrier as a method of fulfilling its 
obligations under section 59.1.
    (c) An incumbent local exchange carrier subject to the requirements 
of section 59.1 shall not be treated by the Commission or any State as a 
common carrier for hire or as offering common carrier services with 
respect to any public switched network infrastructure, technology, 
information, or telecommunications facilities, or functions made 
available to a qualifying carrier in accordance with regulations issued 
pursuant to this section.
    (d) An incumbent local exchange carrier subject to the requirements 
of section 59.1 shall make such public switched network infrastructure, 
technology, information, and telecommunications facilities, or functions 
available to a qualifying carrier on just and reasonable terms and 
pursuant to conditions that permit such qualifying carrier to fully 
benefit from the economies of scale and scope of such local exchange 
carrier. An incumbent local exchange carrier that has entered into an 
infrastructure sharing agreement pursuant to section 59.1 must give 
notice to the qualifying carrier at least sixty days before terminating 
such infrastructure sharing agreement.
    (e) An incumbent local exchange carrier subject to the requirements 
of section 59.1 shall not be required to engage in any infrastructure 
sharing agreement for any services or access which are to be provided or 
offered to consumers by the qualifying carrier in such local exchange 
carrier's telephone exchange area.

[[Page 237]]

    (f) An incumbent local exchange carrier subject to the requirements 
of section 59.1 shall file with the State, or, if the State has made no 
provision to accept such filings, with the Commission, for public 
inspection, any tariffs, contracts, or other arrangements showing the 
rates, terms, and conditions under which such carrier is making 
available public switched network infrastructure, technology, 
information and telecommunications facilities and functions pursuant to 
this part.



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

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



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

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



PART 61_TARIFFS--Table of Contents



                            Subpart A_General

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

                  Subpart B_Rules for Electronic Filing

61.13 Scope.
61.14 Method of filing publications.
61.15 Letters of transmittal and cover letters.
61.16 Base documents.
61.17 Applications for special permission.

            Subpart C_General Rules for Nondominant Carriers

61.18 Scope.
61.19 Detariffing of international and interstate, domestic 
          interexchange services.
61.20 Method of filing publications.
61.25 References to other instruments.
61.26 Tariffing of competitive interstate switched exchange access 
          services.

   Subpart D_General Tariff Rules for International Dominant Carriers

61.28 International dominant carrier tariff filing requirements.

              Subpart E_General Rules for Dominant Carriers

61.38 Supporting information to be submitted with letters of 
          transmittal.
61.39 Optional supporting information to be submitted with letters of 
          transmittal for Access Tariff filings by incumbent local 
          exchange carriers serving 50,000 or fewer access lines in a 
          given study area that are described as subset 3 carriers in 
          Sec. 69.602.
61.40 Private line rate structure guidelines.
61.41 Price cap requirements generally.
61.42 Price cap baskets and service categories.
61.43 Annual price cap filings required.
61.44 [Reserved]
61.45 Adjustments to the PCI for Local Exchange Carriers.
61.46 Adjustments to the API.
61.47 Adjustments to the SBI; pricing bands.
61.48 Transition rules for price cap formula calculations.
61.49 Supporting information to be submitted with letters of transmittal 
          for tariffs of carriers subject to price cap regulation.
61.50 [Reserved]

  Subpart F_Formatting and Notice Requirements for Tariff Publications

61.51 Scope.
61.52 Form, size, type, legibility, etc.
61.54 Composition of tariffs.
61.55 Contract-based tariffs.
61.58 Notice requirements.
61.59 Effective period required before changes.

    Subpart G_Specific Rules for Tariff Publications of Dominant and 
                          Nondominant Carriers

61.66 Scope.
61.68 Special notations.

[[Page 238]]

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

                         Subpart H_Concurrences

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

    Subpart I_Adoption of Tariffs and Other Documents of Predecessor 
                                Carriers

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

                          Subpart J_Suspensions

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

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

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



                            Subpart A_General



Sec. 61.1  Purpose and application.

    (a) The purpose of this part is to prescribe the framework for the 
initial establishment of and subsequent revisions to tariff 
publications.
    (b) Tariff publications filed with the Commission must conform to 
the rules in this part and with Commission rules regarding the payment 
of statutory charges (see subpart G of part 1 of this title) and the use 
of FCC Registration Numbers (FRNs) (see subpart W of part 1 of this 
title). Failure to comply with any provisions of these rules may be 
grounds for rejection of the non-complying publication, a determination 
that it is unlawful or other action. Where an FRN has been omitted from 
a cover letter or transmittal accompanying a tariff publication filed 
under this part or the FRN included in that letter is invalid, the 
submitting carrier or carrier representative shall have ten (10) 
business days from the date of filing to amend the cover letter or 
transmittal to include a valid FRN. If within that ten (10) business day 
period, the carrier or carrier representative amends the cover letter or 
transmittal to include a valid FRN, that FRN shall be deemed to have 
been included in the letter as of its original filing date. If, after 
the expiration of the ten (10) business day period, the cover letter or 
transmittal has not been amended to include a valid FRN, the related 
tariff publication may be rejected if it has not yet become effective, 
declared unlawful if it has become effective, or subject to other 
action.
    (c) No carrier required to file tariffs may provide any interstate 
or foreign communication service until every tariff publication for such 
communication service is on file with the Commission and in effect.

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



Sec. 61.2  General tariff requirements.

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

[64 FR 46586, Aug. 26, 1999]



Sec. 61.3  Definitions.

    (a) Act. The Communications Act of 1934 (48 Stat. 1004; 47 U.S.C. 
chapter 5), as amended.
    (b) Actual Price Index (API). An index of the level of aggregate 
rate element rates in a basket, which index is calculated pursunt to 
Sec. 61.46.
    (c) Association. This term has the meaning given it in Sec. 
69.2(d).
    (d) Average Price Cap CMT Revenue per Line month. (1) Price Cap CMT 
Revenue (as defined in Sec. 61.3(cc)) per month as of July 1, 2000 
(adjusted to remove Universal Service Contributions assessed to local 
exchange carriers pursuant to Sec. 54.702 of this chapter) using 2000

[[Page 239]]

annual filing base period demand, divided by the 2000 annual filing base 
period demand. In filing entities with multiple study areas, if it 
becomes necessary to calculate the Average Price Cap CMT Revenue per 
Line month for a specific study area, then the Average Price Cap CMT 
Revenue per Line month for that study area is determined as follows, 
using base period demand revenues (adjusted to remove Universal Service 
Contributions assessed to Local Exchange Carriers pursuant to Sec. 
54.702 of this chapter), Base Factor Portion (BFP) and 2000 annual 
filing base period lines:
    Average Price Cap CMT Revenue per Line Month in a study area = Price 
Cap CMT Revenue x (BFP in the study area / (BFP in the Filing Entity) /
(Lines in the study area.
    (2) Nothing in this definition precludes a price cap local exchange 
carrier from continuing to average rates across filing entities 
containing multiple study areas, where permitted under existing rules.
    (3) Average Price Cap CMT Revenues per Line month may be adjusted 
after July 1, 2000 to reflect exogenous costs pursuant to Sec. 
61.45(d).
    (4) Average Price Cap CMT Revenues per Line month may also be 
adjusted pursuant to Sec. 61.45 (b)(1)(iii).
    (e) Average Traffic Sensitive Charge. (1) The Average Traffic 
Sensitive Charge (ATS charge) is the sum of the following two 
components:
    (i) The Local Switching (LS) component. The LS component will be 
calculated by dividing the proposed LS revenues (End Office Switch, LS 
trunk ports, Information Surcharge, and signalling transfer point (STP) 
port) by the base period LS minutes of use (MOUs); and
    (ii) The Transport component. The Transport component will be 
calculated by dividing the proposed Transport revenues (Switched Direct 
Trunk Transport, Signalling for Switched Direct Trunk Transport, 
Entrance Facilities for Switched Access traffic, Tandem Switched 
Transport, Signalling for Tandem Switching and residual per minute 
Transport Interconnection Charge (TIC) pursuant to Sec. 69.155 of this 
chapter) by price cap local exchange carrier only base period MOUs 
(including meet-point billing arrangements for jointly-provided 
interstate access by a price cap local exchange carrier and any other 
local exchange carrier).
    (2) For the purposes of determining whether the ATS charge has 
reached the Target Rate as set forth in Sec. 61.3(qq), the calculations 
should include all the relevant revenues and minutes for services 
provided under generally available price cap tariffs.
    (f) Band. A zone of pricing flexibility for a service category, 
which zone is calculated pursuant to Sec. 61.47.
    (g) Base period. For carriers subject to Sec. Sec. 61.41 through 
61.49, the 12-month period ending six months prior to the effective date 
of annual price cap tariffs. Base year or base period earnings shall 
exclude amounts associated with exogenous adjustments to the PCI for the 
lower formula adjustment mechanism permitted by Sec. 61.45(d)(1)(vii).
    (h) Basket. Any class or category of tariffed service or charge:
    (1) Which is established by the Commission pursuant to price cap 
regulation;
    (2) The rates of which are reflected in an Actual Price Index; and
    (3) The related revenues of which are reflected in a Price Cap 
Index.
    (i) Change in rate structure. A restructuring or other alteration of 
the rate components for an existing service.
    (j) Charges. The price for service based on tariffed rates.
    (k) Commercial contractor. The commercial firm to whom the 
Commission annually awards a contract to make copies of Commission 
records for sale to the public.
    (l) Commission. The Federal Communications Commission.
    (m) Concurring carrier. A carrier (other than a connecting carrier) 
subject to the Act which concurs in and assents to schedules of rates 
and regulations filed on its behalf by an issuing carrier or carriers.
    (n) Connecting carrier. A carrier engaged in interstate or foreign 
communication solely through physical connection with the facilities of 
another carrier not directly or indirectly controlling or controlled by, 
or under direct or indirect common control with, such carrier.

[[Page 240]]

    (o) Contract-based tariff. A tariff based on a service contract 
entered into between a non-dominant carrier and a customer, or between a 
customer and a price cap local exchange carrier which has obtained 
permission to offer contract-based tariff services pursuant to part 69, 
subpart H, of this chapter.
    (p) Corrections. The remedy of errors in typing, spelling, or 
punctuation.
    (q) Dominant carrier. A carrier found by the Commission to have 
market power (i.e., power to control prices).
    (r) GDP Price Index (GDP-PI). The estimate of the Chain-Type Price 
Index for Gross Domestic Product published by the United States 
Department of Commerce, which the Commission designates by Order.
    (s) GNP Price Index (GNP-PI). The estimate of the ``Fixed-Weighted 
Price Index for Gross National Product, 1982 Weights'' published by the 
United States Department of Commerce, which the Commission designates by 
Order.
    (t) Incumbent Local Exchange Carrier. ``Incumbent Local Exchange 
Carrier'' or ``ILEC'' has the same meaning as that term is defined in 47 
U.S.C. 251(h).
    (u) Issuing carrier. A carrier subject to the Act that publishes and 
files a tariff or tariffs with the Commission.
    (v) Line month. Line demand per month multiplied by twelve.
    (w) Local exchange carrier. Any person that is engaged in the 
provision of telephone exchange service or exchange access as defined in 
section 3(26) of the Act.
    (x) Mid-size company. All price cap local exchange carriers other 
than the Regional Bell Operating Companies and GTE.
    (y) New service offering. A tariff filing that provides for a class 
or sub-class of service not previously offered by the carrier involved 
and that enlarges the range of service options available to ratepayers.
    (z) Non-dominant carrier. A carrier not found to be dominant. The 
nondominant status of providers of international interexchange services 
for purposes of this subpart is not affected by a carrier's 
classification as dominant under Sec. 63.10 of this chapter.
    (aa) Other participating carrier. A carrier subject to the Act that 
publishes a tariff containing rates and regulations applicable to the 
portion or through service it furnishes in conjunction with another 
subject carrier.
    (bb) Price Cap Local Exchange Carrier. A local exchange carrier 
subject to regulation pursuant to Sec. 61.41 through 61.49.
    (cc) Pooled Local Switching Revenue. For certain qualified companies 
as set forth in Sec. 61.48 (m), is the amount of additional local 
switching reductions in the July 2000 Annual filing allowed to be moved 
and recovered in the CMT basket.
    (dd) Price Cap CMT Revenue. The maximum total revenue a filing 
entity would be permitted to receive from End User Common Line charges 
under Sec. 69.152 of this chapter, Presubscribed Interexchange Carrier 
charges (PICCs) under Sec. 69.153 of this chapter, Carrier Common Line 
charges under Sec. 69.154 of this chapter, and Marketing under Sec. 
69.156 of this chapter, using Base Period lines. Price Cap CMT Revenue 
does not include the price cap local exchange carrier universal service 
contributions as of July 1, 2000. The Price Cap CMT revenue does not 
include the pooled local switching revenue outlined in paragraph (bb) of 
this section.
    (ee) Price Cap Index (PCI). An index of prices applying to each 
basket of services of each carrier subject to price cap regulation, and 
calculated pursuant to Sec. 61.45.
    (ff) Price cap regulation. A method of regulation of dominant 
carriers provided in Sec. Sec. 61.41 through 61.49.
    (gg) Price cap tariff filing. Any tariff filing involving a service 
subject to price cap regulation, or that requires calculations pursuant 
to Sec. Sec. 61.45, 61.46, or 61.47.
    (hh) [Reserved]
    (ii) Rate. The tariffed price per unit of service.
    (jj) Rate increase. Any change in a tariff which results in an 
increased rate or charge to any of the filing carrier's customers.
    (kk) Rate level change. A tariff change that only affects the actual 
rate associated with a rate element, and does not affect any tariff 
regulations or any other wording of tariff language.
    (ll) Regulations. The body of carrier prescribed rules in a tariff 
governing

[[Page 241]]

the offering of service in that tariff, including rules, practices, 
classifications, and definitions.
    (mm) Restructured service. An offering which represents the 
modification of a method of charging or provisioning a service; or the 
introduction of a new method of charging or provisioning that does not 
result in a net increase in options available to customers.
    (nn) Rural Company. A company that, as of December 31, 1999, was 
certified to the Commission as a rural telephone company.
    (oo) Service Band Index (SBI). An index of the level of aggregate 
rate element rates in a service category, which index is calculated 
pursuant to Sec. 61.47.
    (pp) Service category. Any group of rate elements subject to price 
cap regulation, which group is subject to a band.
    (qq) Supplement. A publication filed as part of a tariff for the 
purpose of suspending or canceling that tariff, or tariff publication 
and numbered independently from the tariff page series.
    (rr) Target Rate. The applicable Target Rate shall be defined as 
follows:
    (1) For regional Bell Operating Companies and GTE, $0.0055 per ATS 
minute of use;
    (2) For a holding company with a holding company average of less 
than 19 Switched Access End User Common Line charge lines per square 
mile served such company may elect to use a Target Rate of $0.0095 with 
respect to all exchanges owned by that holding company on July 1, 2000, 
or which that holding company is, as of April 1, 2000, under a binding 
and executed contract to purchase;
    (3) For other price cap local exchange carriers, $0.0065 per ATS 
minute of use.
    (ss) Tariff. Schedules of rates and regulations filed by common 
carriers.
    (tt) Tariff publication, or publication. A tariff, supplement, 
revised page, additional page, concurrence, notice of revocation, 
adoption notice, or any other schedule of rates or regulations filed by 
common carriers.
    (uu) Tariff year. The period from the day in a calendar year on 
which a carrier's annual access tariff filing is scheduled to become 
effective through the preceding day of the subsequent calendar year.
    (vv) Text change. A change in the text of a tariff which does not 
result in a change in any rate or regulation.
    (ww) United States. The several States and Territories, the District 
of Columbia, and the possessions of the United States.
    (xx) Corridor service. ``Corridor service'' refers to interLATA 
services offered in the ``limited corridors'' established by the 
District Court in United States v. Western Electric Co., Inc., 569 F. 
Supp. 1057, 1107 (D.D.C. 1983).
    (yy) Toll dialing parity. ``Toll dialing parity'' exists when there 
is dialing parity, as defined in Sec. 51.5 of this chapter, for toll 
services.
    (zz) Loop-based services. Loop-based services are services that 
employ Subcategory 1.3 facilities, as defined in Sec. 36.154 of this 
chapter.
    (aaa) Zone Average Revenue per Line. The amount calculated as 
follows:

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

Where:

Loop = the price for unbundled loops in a UNE zone.
Port = the price for switch ports in that UNE zone.
U = [(Average Price Cap CMT Revenue per Line month in a study area * 
          price cap local exchange carrier Base Period Lines) - (25% * 
          [Sigma] (price cap local exchange carrier Base Period Lines in 
          a UNE Zone * ((Loop + Port ) for all zones)))] / price cap 
          local exchange carrier Base Period Lines in a study area.
    (bbb) Access stimulation.(1) A rate-of-return local exchange carrier 
or a Competitive Local Exchange Carrier engages in access stimulation 
when it satisfies the following two conditions:
    (i) Has an access revenue sharing agreement, whether express, 
implied, written or oral, that, over the course of the agreement, would 
directly or indirectly result in a net payment to the other party 
(including affiliates) to the agreement, in which payment by the rate-
of-return local exchange carrier or Competitive Local Exchange Carrier 
is based on the billing or collection of access charges from 
interexchange carriers or wireless carriers. When determining whether 
there is a net payment

[[Page 242]]

under this rule, all payments, discounts, credits, services, features, 
functions, and other items of value, regardless of form, provided by the 
rate-of-return local exchange carrier or Competitive Local Exchange 
Carrier to the other party to the agreement shall be taken into account; 
and
    (ii) Has either an interstate terminating-to-originating traffic 
ratio of at least 3:1 in a calendar month, or has had more than a 100 
percent growth in interstate originating and/or terminating switched 
access minutes of use in a month compared to the same month in the 
preceding year.
    (2) The local exchange carrier will continue to be engaging in 
access stimulation until it terminates all revenue sharing arrangements 
covered in paragraph (a)(1)(i) of this section. A local exchange carrier 
engaging in access stimulation is subject to revised interstate switched 
access charge rules under Sec. 61.38 and Sec. 69.3(e)(12) of this 
chapter.

[54 FR 19840, May 8, 1989]

    Editorial Note: For Federal Register citations affecting Sec. 61.3, 
see the List of CFR Sections Affected, which appears in the Finding Aids 
section of the printed volume and at www.fdsys.gov.



Sec. Sec. 61.11-61.12  [Reserved]



                  Subpart B_Rules for Electronic Filing

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



Sec. 61.13  Scope.

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

[63 FR 35540, June 30, 1998, as amended at 76 FR 43210, July 20, 2011]



Sec. 61.14  Method of filing publications.

    (a) Publications filed electronically must be addressed to 
``Secretary, Federal Communications Commission, Washington, DC 20554.'' 
The Electronic Tariff Filing System will accept filings 24 hours a day, 
seven days a week. The official filing date of a publication received by 
the Electronic Tariff Filing System will be determined by the date and 
time the transmission ends. If the transmission ends after the close of 
a business day, as that term is defined in Sec. 1.4(e)(2) of this 
Chapter, the filing will be date and time stamped as of the opening of 
the next business day.
    (b) In addition, except for issuing carriers filing tariffing fees 
electronically, for all tariff publications requiring fees as set forth 
in part 1, subpart G of this chapter, issuing carriers must submit the 
original of the cover letter (without attachments), FCC Form 159, and 
the appropriate fee to the address set forth in Sec. 1.1105 of this 
chapter.
    (c) Carriers that are required to file publications electronically 
may not file those publications on paper or other media unless 
specifically required to do so by the Commission.
    (d) Carriers that are required to file publications electronically 
need only transmit one set of files to the Commission. No other copies 
to any other party are required.
    (e) Carriers that are required to file publications electronically 
must comply with the format requirements set forth in Sec. Sec. 61.52 
and 61.54, with the exception of the informational tariffs filed 
pursuant to 47 U.S.C. 226(h)(1)(A).

[63 FR 35540, June 30, 1998, as amended at 64 FR 46586, Aug. 26, 1999; 
73 FR 9030, Feb. 19, 2008; 76 FR 43210, July 20, 2011]



Sec. 61.15  Letters of transmittal and cover letters.

    (a) All tariff publications filed with the Commission electronically 
must be accompanied by a letter of transmittal. All letters of 
transmittal filed with the Commission must be numbered consecutively by 
the issuing carrier beginning with Number 1. All letters of transmittal 
must also:
    (1) Concisely explain the nature and purpose of the filing;
    (2) Specify whether supporting information is required for the new 
tariff or

[[Page 243]]

tariff revision, and specify the Commission rule or rules governing the 
supporting information requirements for that filing;
    (3) Contain a statement indicating the date and method of filing of 
the original of the transmittal as required by Sec. 61.14(b);
    (4) Include the FCC Registration Number (FRN) of the carrier(s) on 
whose behalf the cover letter is submitted. See subpart W of part 1 of 
this title.
    (b) Local exchange carriers filing tariffs electronically pursuant 
to the notice requirements of section 204(a)(3) of the Communications 
Act shall display prominently, in the upper right hand corner of the 
letter of transmittal, a statement that the filing is made pursuant to 
that section and whether the tariff is filed on 7 or 15 days notice.
    (c) Any carrier filing a new or revised tariff made on 15 days' 
notice or less shall include in the letter of transmittal the name, room 
number, street address, telephone number, and facsimile number of the 
individual designated by the filing carrier to receive personal or 
facsimile service of petitions against the filing as required under 
Sec. 1.773(a)(4) of this chapter.
    (d) International carriers must certify that they are authorized 
under Section 214 of the Communications Act of 1934, as amended, to 
provide service, and reference the FCC file number of that 
authorization.
    (e) In addition to the requirements set forth in paragraph (a) of 
this section, any incumbent local exchange carrier choosing to file an 
Access Tariff under Sec. 61.39 must include in the transmittal:
    (1) A summary of the filing's basic rates, terms and conditions;
    (2) A statement concerning whether any prior Commission facility 
authorization necessary to the implementation of the tariff has been 
obtained; and
    (3) A statement that the filing is made pursuant to Sec. 61.39.
    (f) In addition to the requirements set forth in paragraph (a) of 
this section, any price cap local exchange carrier filing a price cap 
tariff must include in the letter of transmittal a statement that the 
filing is made pursuant to Sec. 61.49.
    (g) The letter of transmittal must specifically reference by number 
any special permission necessary to implement the tariff publication. 
Special permission must be granted prior to the filing of the tariff 
publication and may not be requested in the transmittal letter.
    (h)(1) The letter of transmittal must be substantially in the 
following format:
________________________________________________________________________
(Exact name of carrier in full)
________________________________________________________________________
(Post Office Address)
________________________________________________________________________
(Date)
________________________________________________________________________
Transmittal No.

Secretary, Federal Communications Commission; Washington, DC 20554

Attention: Wireline Competition Bureau

    The accompanying tariff (or other publication) issued by --------, 
and bearing FCC No. --------, effective --------, 20--, is sent to you 
for filing in compliance with the requirements of the Communications Act 
of 1934, as amended. (Here give the additional information required.)
________________________________________________________________________
(Name of issuing officer or agent)
________________________________________________________________________
________________________________________________________________________
    (Title)

    (2) A separate letter of transmittal may accompany each publication, 
or the above format may be modified to provide for filing as many 
publications as desired with one transmittal letter.
    (i) All submissions of documents other than a new tariff or 
revisions to an existing tariff, such as Base Documents or Tariff Review 
Plans, must be accompanied by a cover letter that concisely explains the 
nature and purpose of the filing. Publications submitted under this 
paragraph are not required to submit a tariffing fee.

[76 FR 43210, July 20, 2011]



Sec. 61.16  Base documents.

    (a) The Base Document is a complete tariff which incorporates all 
effective revisions, as of the last day of the preceding month. The Base 
Document should be submitted with a cover letter as specified in Sec. 
61.15(i) and identified as the Monthly Updated Base Document.

[[Page 244]]

    (b) If there have been revisions that became effective up to and 
including the last day of the preceding month, a new Base Document must 
be submitted within the first five business days of the current month 
that will incorporate those revisions.

[76 FR 43211, July 20, 2011]



Sec. 61.17  Applications for special permission.

    (a) All issuing carriers that file applications for special 
permission, associated documents, such as transmittal letters, requests 
for special permission, and supporting information, shall file those 
documents electronically.
    (b) Applications for special permission must contain:
    (1) A detailed description of the tariff publication proposed to be 
put into effect;
    (2) A statement citing the specific rules and the grounds on which 
waiver is sought;
    (3) A showing of good cause; and
    (4) The appropriate Illustrative tariff pages the issuing carrier 
wishes to either revise or add as new pages to its tariff.
    (c) An application for special permission must be addressed to 
``Secretary, Federal Communications Commission, Washington, DC 20554.'' 
The Electronic Tariff Filing System will accept filings 24 hours a day, 
seven days a week. The official filing date of a publication received by 
the Electronic Tariff Filing System will be determined by the date and 
time the transmission ends. If the transmission ends after the close of 
a business day, as that term is defined in Sec. 1.4(e)(2) of this 
chapter, the filing will be date and time stamped as of the opening of 
the next business day.
    (d) In addition, except for issuing carriers filing tariffing fees 
electronically, for special permission applications requiring fees as 
set forth in part 1, subpart G of this chapter, issuing carriers must 
submit the original of the application letter (without attachments), FCC 
Form 159, and the appropriate fee to the address set forth in Sec. 
1.1105 of this chapter.
    (e) In addition, if an issuing carrier applies for special 
permission to revise joint tariffs, the application must state that it 
is filed on behalf of all carriers participating in the affected 
service. Applications must be numbered consecutively in a series 
separate from FCC tariff numbers and Letters of Transmittal, bear the 
signature of the officer or agent of the carrier, and be in the 
following format:

 Application No.________________________________________________________

 (Date)_________________________________________________________________

    Secretary, Federal Communications Commission, Washington, DC 20554.

Attention: Wireline Competition Bureau (here provide the statements 
required by section 61.17(b)).

 (Exact name of carrier)________________________________________________

 (Name of officer or agent)_____________________________________________

 (Title of officer or agent)____________________________________________

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

[76 FR 43211, July 20, 2011]



            Subpart C_General Rules for Nondominant Carriers



Sec. 61.18  Scope.

    The rules in this subpart apply to all nondominant carriers.

[64 FR 46587, Aug. 26, 1999]



Sec. 61.19  Detariffing of international and interstate, domestic 

interexchange services.

    (a) Except as otherwise provided in paragraphs (b) through (e) of 
this section, or by Commission order, carriers that are nondominant in 
the provision of international and interstate, domestic interexchange 
services shall not file tariffs for such services.
    (b) Carriers that are nondominant in the provision of international 
and domestic, interstate, interexchange services are permitted to file 
tariffs for dial-around 1+ services. For the purposes of this paragraph, 
dial-around 1+ calls are those calls made by accessing the interexchange 
carrier through the

[[Page 245]]

use of that carrier's carrier access code.
    (c) Carriers that are nondominant in the provision of international 
and domestic, interstate, interexchange services are permitted to file a 
tariff for such services applicable to those customers who contact the 
local exchange carrier to designate an interexchange carrier or to 
initiate a change with respect to their primary interexchange carrier. 
Such tariff will enable the interexchange carrier to provide service to 
the customer until the interexchange carrier and the customer consummate 
a written agreement, but in no event shall the interexchange carrier 
provide service to its customer pursuant to such tariff for more than 45 
days.
    (d) Carriers that are nondominant in the provision of international 
inbound collect calls to the United States are permitted to file a 
tariff for such services.
    (e) Carriers that are nondominant in the provision of ``on-demand'' 
Mobile Satellite Services are permitted to file a tariff for such 
services applicable to those customers that have not entered into pre-
existing service contracts designating a specific provider for such 
services.

[66 FR 16881, Mar. 28, 2001]



Sec. 61.20  Method of filing publications.

    (a) All issuing carriers that file tariffs shall file all tariff 
publications and associated documents, such as transmittal letters, 
requests for special permission, and supporting information, 
electronically in accordance with the requirements set forth in 
Sec. Sec. 61.13 through 61.17.
    (b) In addition, except for issuing carriers filing tariffing fees 
electronically, for all tariff publications requiring fees as set forth 
in part 1, subpart G of this chapter, issuing carriers must submit the 
original of the cover letter (without attachments), FCC Form 159, and 
the appropriate fee to the address set forth in Sec. 1.1105 of this 
chapter.

[76 FR 43211, July 20,2011]



Sec. 61.25  References to other instruments.

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

[64 FR 46588, Aug. 26, 1999]



Sec. 61.26  Tariffing of competitive interstate switched exchange access 

services.

    (a) Definitions. For purposes of this section, the following 
definitions shall apply:
    (1) CLEC shall mean a local exchange carrier that provides some or 
all of the interstate exchange access services used to send traffic to 
or from an end user and does not fall within the definition of 
``incumbent local exchange carrier'' in 47 U.S.C. 251(h).
    (2) Competing ILEC shall mean the incumbent local exchange carrier, 
as defined in 47 U.S.C. 251(h), that would provide interstate exchange 
access services, in whole or in part, to the extent those services were 
not provided by the CLEC.
    (3) Switched exchange access services shall include:
    (i) The functional equivalent of the ILEC interstate exchange access 
services typically associated with the following rate elements: Carrier 
common line (originating); carrier common line (terminating); local end 
office switching; interconnection charge; information surcharge; tandem 
switched transport termination (fixed); tandem

[[Page 246]]

switched transport facility (per mile); tandem switching;
    (ii) The termination of interexchange telecommunications traffic to 
any end user, either directly or 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 reciprocal compensation charges prescribed by this subpart for 
that traffic, regardless of the specific functions provided or 
facilities used.
    (4) Non-rural ILEC shall mean an incumbent local exchange carrier 
that is not a rural telephone company under 47 U.S.C. 153(44).
    (5) The rate for interstate switched exchange access services shall 
mean the composite, per-minute rate for these services, including all 
applicable fixed and traffic-sensitive charges.
    (6) Rural CLEC shall mean a CLEC that does not serve (i.e., 
terminate traffic to or originate traffic from) any end users located 
within either:
    (i) Any incorporated place of 50,000 inhabitants or more, based on 
the most recently available population statistics of the Census Bureau 
or
    (ii) An urbanized area, as defined by the Census Bureau.
    (b) Except as provided in paragraphs (c), (e), and (g) of this 
section, a CLEC shall not file a tariff for its interstate switched 
exchange access services that prices those services above the higher of:
    (1) The rate charged for such services by the competing ILEC or
    (2) The lower of:
    (i) The benchmark rate described in paragraph (c) of this section or
    (ii) In the case of interstate switched exchange access service, the 
lowest rate that the CLEC has tariffed for its interstate exchange 
access services, within the six months preceding June 20, 2001.
    (c) The benchmark rate for a CLEC's switched exchange access 
services will be the rate charged for similar services by the competing 
ILEC. If an ILEC to which a CLEC benchmarks its rates, pursuant to this 
section, lowers the rate to which a CLEC benchmarks, the CLEC must 
revise its rates to the lower level within 15 days of the effective date 
of the lowered ILEC rate.
    (d) Except as provided in paragraph (g) of this section, and 
notwithstanding paragraphs (b) and (c) of this section, in the event 
that, after June 20, 2001, a CLEC begins serving end users in a 
metropolitan statistical area (MSA) where it has not previously served 
end users, the CLEC shall not file a tariff for its exchange access 
services in that MSA that prices those services above the rate charged 
for such services by the competing ILEC.
    (e) Rural exemption. Except as provided in paragraph (g) of this 
section, and notwithstanding paragraphs (b) through (d) of this section, 
a rural CLEC competing with a non-rural ILEC shall not file a tariff for 
its interstate exchange access services that prices those services above 
the rate prescribed in the NECA access tariff, assuming the highest rate 
band for local switching. In addition to that NECA rate, the rural CLEC 
may assess a presubscribed interexchange carrier charge if, and only to 
the extent that, the competing ILEC assesses this charge. Beginning July 
1, 2013, all CLEC reciprocal compensation rates for intrastate switched 
exchange access services subject to this subpart also shall be no higher 
than that NECA rate.
    (f) If a CLEC provides some portion of the switched exchange access 
services used to send traffic to or from an end user not served by that 
CLEC, the rate for the access services provided may not exceed the rate 
charged by the competing ILEC for the same access services, except if 
the CLEC is listed in the database of the Number Portability 
Administration Center as providing the calling party or dialed number, 
the CLEC may, to the extent permitted by Sec. 51.913(b) of this 
chapter, assess a rate equal to the rate that would be charged by the 
competing ILEC for all exchange access services required to deliver 
interstate traffic to the called number.
    (g) Notwithstanding paragraphs (b) through (e) of this section:
    (1) A CLEC engaging in access stimulation, as that term is defined 
in Sec. 61.3(bbb), shall not file a tariff for its interstate exchange 
access services

[[Page 247]]

that prices those services above the rate prescribed in the access 
tariff of the price cap LEC with the lowest switched access rates in the 
state.
    (2) A CLEC engaging in access stimulation, as that term is defined 
in Sec. 61.3(bbb), shall file revised interstate switched access 
tariffs within forty-five (45) days of commencing access stimulation, as 
that term is defined in Sec. 61.3(bbb), or within forty-five (45) days 
of [date] if the CLEC on that date is engaged in access stimulation, as 
that term is defined in Sec. 61.3(bbb).

[76 FR 73881, Nov. 29, 2011, as amended at 77 FR 20553, Apr. 5, 2012]



   Subpart D_General Tariff Rules for International Dominant Carriers



Sec. 61.28  International dominant carrier tariff filing requirements.

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

[66 FR 16881, Mar. 28, 2001]



              Subpart E_General Rules for Dominant Carriers



Sec. 61.31  Scope.

    The rules in this subpart apply to all dominant carriers.

[64 FR 46588, Aug. 26, 1999]



Sec. 61.38  Supporting information to be submitted with letters of 

transmittal.

    (a) Scope. This section applies to dominant carriers whose gross 
annual revenues exceed $500,000 for the most recent 12 month period of 
operations or are estimated to exceed $500,000 for a representative 12 
month period. Incumbent Local Exchange Carriers serving 50,000 or fewer 
access lines in a given study area that are described as subset 3 
carriers in Sec. 69.602 of this chapter may submit Access Tariff 
filings for that study area pursuant to either this section or Sec. 
61.39. However, the Commission may require any issuing carrier to submit 
such information as may be necessary for a review of a tariff filing. 
This section (other than the preceding sentence of this paragraph) shall 
not apply to tariff filings proposing rates for services identified in 
Sec. 61.42 (d), (e), and (g).
    (b) Explanation and data supporting either changes or new tariff 
offerings. The material to be submitted for a tariff change which 
affects rates or charges or for a tariff offering a new service, must 
include an explanation of the changed or new matter, the reasons for the 
filing, the basis of ratemaking employed, and economic information to 
support the changed or new matter.
    (1) For a tariff change the issuing carrier must submit the 
following, including complete explanations of the bases for the 
estimates.
    (i) A cost of service study for all elements for the most recent 12 
month period;
    (ii) A study containing a projection of costs for a representative 
12 month period;
    (iii) Estimates of the effect of the changed matter on the traffic 
and revenues from the service to which the changed matter applies, the 
issuing carrier's other service classifications, and the carrier's 
overall traffic and revenues. These estimates must include the projected 
effects on the traffic and revenues for the same representative 12 month 
period used in (b)(1)(ii) above.
    (2) For a tariff filing offering a new service, the issuing carrier 
must submit the following, including complete

[[Page 248]]

explanations of the bases for the estimates.
    (i) A study containing a projection of costs for a representative 12 
month period; and
    (ii) Estimates of the effect of the new matter on the traffic and 
revenues from the service to which the new matter applies, the issuing 
carrier's other service classifications, and the issuing carrier's 
overall traffic and revenues. These estimates must include the projected 
effects on the traffic and revenues for the same representative 12 month 
period used in paragraph (b)(2)(i) of this section.
    (3) [Reserved]
    (4) For a tariff that introduces a system of density pricing zones, 
as described in Sec. 69.123 of this chapter, the issuing carrier must, 
before filing its tariff, submit a density pricing zone plan including, 
inter alia, documentation sufficient to establish that the system of 
zones reasonably reflects cost-related characteristics, such as the 
density of total interstate traffic in central offices located in the 
respective zones, and receive approval of its proposed plan.
    (c) Working papers and statistical data. (1) Concurrently with the 
filing of any tariff change or tariff filing for a service not 
previously offered, the issuing carrier must file the working papers 
containing the information underlying the data supplied in response to 
paragraph (b) of this section, and a clear explanation of how the 
working papers relate to that information.
    (2) All statistical studies must be submitted and supported in the 
form prescribed in Sec. 1.363 of this chapter.
    (d) Form and content of additional material to be submitted with 
certain rate increases. In the circumstances set out in paragraphs 
(d)(1) and (2) of this section, the issuing carrier must submit all 
additional cost, marketing and other data underlying the working papers 
to justify a proposed rate increase. The issuing carrier must submit 
this information in suitable form to serve as the carrier's direct case 
in the event the rate increase is set by the Commission for 
investigation.
    (1) Rate increases affecting single services or tariffed items.
    (i) A rate increase in any service or tariffed item which results in 
more than $1 million in additional annual revenues, calculated on the 
basis of existing quantities in service, without regard to the 
percentage increase in such revenues; or
    (ii) A single rate increase in any service or tariffed item, or 
successive rate increases in the same service or tariffed item within a 
12 month period, either of which results in:
    (A) At least a 10 percent increase in annual revenues from that 
service or tariffed item, and
    (B) At least $100,000 in additional annual revenues, both calculated 
on the basis of existing quantities in service.
    (2) Rate increases affecting more than one service or tariffed item.
    (i) A general rate increase in more than one service or tariffed 
item occurring at one time, which results in more than $1 million in 
additional revenues calculated on the basis of existing quantities in 
service, without regard to the percentage increase in such revenues; or
    (ii) A general rate increase in more than one service or tariffed 
item occurring at one time, or successive general rate increases in the 
same services or tariffed items occurring within a 12 month period, 
either of which results in:
    (A) At least a 10 percent increase in annual revenues from those 
services or tariffed items, and
    (B) At least $100,000 in additional annual revenues, both calculated 
on the basis of existing quantities in service.
    (e) Submission of explanation and data by connecting carriers. If 
the changed or new matter is being filed by the issuing carrier at the 
request of a connecting carrier, the connecting carrier must provide the 
data required by paragraphs (b) and (c) of this section on the date the 
issuing carrier files the tariff matter with the Commission.
    (f) Copies of explanation and data to customers. Concurrently with 
the filing of any rate for special construction (or special assembly 
equipment and arrangements) developed on the basis of estimated costs, 
the issuing carrier must transmit to the customer a copy of the 
explanation and data required by paragraphs (b) and (c) of this section.

[[Page 249]]

    (g) On each page of cost support material submitted pursuant to this 
section, the issuing carrier shall indicate the transmittal number under 
which that page was submitted.

[76 FR 43211, July 20, 2011]



Sec. 61.39  Optional supporting information to be submitted with letters of 

transmittal for Access Tariff filings by incumbent local exchange carriers 

serving 50,000 or fewer access lines in a given study area that are 

described as subset 3 carriers in Sec. 69.602.

    (a) Scope. Except as provided in paragraph (g) of this section, This 
section provides for an optional method of filing for any local exchange 
carrier that is described as a subset 3 carrier in Sec. 69.602 of this 
chapter, which elects to issue its own Access Tariff for a period 
commencing on or after April 1, 1989, and which serves 50,000 or fewer 
access lines in a study area as determined under Sec. 36.611(a)(8) of 
this chapter. However, the Commission may require any carrier to submit 
such information as may be necessary for review of a tariff filing. This 
section (other than the preceding sentence of this paragraph) shall not 
apply to tariff filings of local exchange carriers subject to price cap 
regulation.
    (b) Explanation and data supporting tariff changes. The material to 
be submitted to either a tariff change or a new tariff which affects 
rates or charges must include an explanation of the filing in the 
transmittal as required by Sec. 61.15. The basis for ratemaking must 
comply with the following requirements. Except as provided in paragraph 
(b)(5) of this section, it is not necessary to submit this supporting 
data at the time of filing. However, the incumbent local exchange 
carrier should be prepared to submit the data promptly upon reasonable 
request by the Commission or interested parties.
    (1) For a tariff change, the incumbent local exchange carrier that 
is a cost schedule carrier must propose Traffic Sensitive rates based on 
the following:
    (i) For the first period, a cost of service study for Traffic 
Sensitive elements for the most recent 12-month period with related 
demand for the same period.
    (ii) For subsequent filings, a cost of service study for Traffic 
Sensitive elements for the total period since the incumbent local 
exchange carrier's last annual filing, with related demand for the same 
period.
    (2) For a tariff change, the incumbent local exchange carrier that 
is an average schedule carrier must propose Traffic Sensitive rates 
based on the following:
    (i) For the first period, the incumbent local exchange carrier's 
most recent annual Traffic Sensitive settlement from the National 
Exchange Carrier Association pool.
    (ii) For subsequent filings, an amount calculated to reflect the 
Traffic Sensitive average schedule pool settlement the carrier would 
have received if the carrier had continued to participate, based upon 
the most recent average schedule formulas approved by the Commission.
    (3) For a tariff change, the incumbent local exchange carrier that 
is a cost schedule carrier must propose Common Line rates based on the 
following:
    (i) For the first biennial filing, the common line revenue 
requirement shall be determined by a cost of service study for the most 
recent 12-month period. Subscriber line charges shall be based on cost 
and demand data for the same period. Carrier common line rates shall be 
determined by the following formula:
[GRAPHIC] [TIFF OMITTED] TR20JY11.005

Where:

[[Page 250]]

[GRAPHIC] [TIFF OMITTED] TR20JY11.006

And where:

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

    (ii) For subsequent biennial filings, the common line revenue 
requirement shall be determined by a cost of service study for the most 
recent 24-month period. Subscriber line charges shall be based on cost 
and demand data for the same period. Carrier common line rates shall be 
determined by the following formula:
[GRAPHIC] [TIFF OMITTED] TR20JY11.007

Where:
[GRAPHIC] [TIFF OMITTED] TR20JY11.008

And where:

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

    (4) For a tariff change, the incumbent local exchange carrier which 
is an average schedule carrier must propose common line rates based on 
the following:
    (i) For the first biennial filings, the common line revenue 
requirement shall be determined by the incumbent local exchange 
carrier's most recent annual Common Line settlement from the National 
Exchange Carrier Association. Subscriber line charges shall be based on 
cost and demand data for the same period. Carrier common line rates 
shall be determined by the following formula:
[GRAPHIC] [TIFF OMITTED] TR20JY11.009

Where:

[[Page 251]]

[GRAPHIC] [TIFF OMITTED] TR20JY11.010

And where:

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

    (ii) For subsequent biennial filings, the common line revenue 
requirement shall be an amount calculated to reflect the average 
schedule pool settlements the carrier would have received if the carrier 
had continued to participate in the carrier common line pool, based upon 
the average schedule Common Line formulas developed by the National 
Exchange Carrier Association for the most recent 24-month period. 
Subscriber line charges shall be based on cost and demand data for the 
same period. Carrier common line rates shall be determined by the 
following formula:
[GRAPHIC] [TIFF OMITTED] TR20JY11.011

Where:
[GRAPHIC] [TIFF OMITTED] TR20JY11.012

And where:

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

    (5) For End User Common Line charges included in a tariff pursuant 
to this Section, the incumbent local exchange carrier must provide 
supporting information for the two-year historical period with its 
letter of transmittal in accordance with Sec. 61.38.
    (c) Maximum allowable rate of return. Incumbent Local exchange 
carriers filing tariffs under this section are not required to comply 
with Sec. Sec. 65.700 through 65.701 of this chapter, except with 
respect to periods during which tariffs were not subject to this 
section. The Commission may require any carrier to submit such 
information if it deems it necessary to monitor the carrier's earnings. 
However, rates must be calculated based on the incumbent local exchange 
carrier's prescribed rate of return applicable to the period during 
which the rates are effective.
    (d) Rates for a new service that is the same as that offered by a 
price cap local exchange carrier providing service in an adjacent 
serving area are deemed presumptively lawful, if the proposed rates, in 
the aggregate, are no greater than the rates established by the price 
cap local exchange carrier. Tariff filings made pursuant to this 
paragraph must include the following:

[[Page 252]]

    (1) A brief explanation of why the service is like an existing 
service offered by a geographically adjacent price cap local exchange 
carrier; and
    (2) Data to establish compliance with this paragraph that, in 
aggregate, the proposed rates for the new service are no greater than 
those in effect for the same or comparable service offered by that same 
geographically adjacent price cap regulated local exchange carrier. 
Compliance may be shown through submission of applicable tariff pages of 
the adjacent carrier; a showing that the serving areas are adjacent; any 
necessary explanations and work sheets.
    (e) Average schedule companies filing pursuant to this section shall 
retain their status as average schedule companies.
    (f) On each page of cost support material submitted pursuant to this 
section, the issuing carrier shall indicate the transmittal number under 
which that page was submitted.
    (g) A local exchange carrier otherwise eligible to file a tariff 
pursuant to this section may not do so if it is engaging in access 
stimulation, as that term is defined in Sec. 61.3(bbb) of this part, 
and has not terminated its access revenue sharing agreement(s). A 
carrier so engaged must file interstate access tariffs in accordance 
with Sec. 61.38, and Sec. 69.3(e)(12)(1) of this chapter.

[76 FR 43212, July 20, 2011, as amended at 76 FR 73882, Nov. 29, 2011]



Sec. 61.40  Private line rate structure guidelines.

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

[49 FR 40869, Oct. 18, 1984, as amended at 76 FR 43213, July 20, 2011]



Sec. 61.41  Price cap requirements generally.

    (a) Sections 61.42 through 61.49 shall apply as follows:
    (1) [Reserved]
    (2) To such price cap local exchange carriers as specified by 
Commission order, and to all local exchange carriers, other than average 
schedule companies, that are affiliated with such carriers; and
    (3) On an elective basis, to local exchange carriers, other than 
those specified in paragraph (a)(2) of this section, that are neither 
participants in any Association tariff, nor affiliated with any such 
participants, except that affiliation with average schedule companies 
shall not bar a carrier from electing price cap regulation provided the 
carrier is otherwise eligible.
    (b) If a telephone company, or any one of a group of affiliated 
telephone companies, files a price cap tariff in one study area, that 
telephone company and its affiliates, except its average schedule 
affiliates, must file price cap tariffs in all their study areas.
    (c) Except as provided in paragraph (e) of this section, the 
following rules in this paragraph (c) apply to telephone companies 
subject to price cap regulation, as that term is defined in Sec. 
61.3(ee), which are involved in mergers, acquisitions, or similar 
transactions.
    (1) Any telephone company subject to price cap regulation that is a 
party to

[[Page 253]]

a merger, acquisition, or similar transaction shall continue to be 
subject to price cap regulation notwithstanding such transaction.
    (2) Where a telephone company subject to price cap regulation 
acquires, is acquired by, merges with, or otherwise becomes affiliated 
with a telephone company that is not subject to price cap regulation, 
the latter telephone company shall become subject to price cap 
regulation no later than one year following the effective date of such 
merger, acquisition, or similar transaction and shall accordingly file 
price cap tariffs to be effective no later than that date in accordance 
with the applicable provisions of this part 61.
    (3) Notwithstanding the provisions of Sec. 61.41(c)(2), when a 
telephone company subject to price cap regulation acquires, is acquired 
by, merges with, or otherwise becomes affiliated with a telephone 
company that qualifies as an ``average schedule'' company, the latter 
company may retain its ``average schedule'' status or become subject to 
price cap regulation in accordance with Sec. 69.3(i)(3) of this chapter 
and the requirements referenced in that section.
    (d) Except as provided in paragraph (e) of this section, local 
exchange carriers that become subject to price cap regulation as that 
term is defined in Sec. 61.3(ee) shall not be eligible to withdraw from 
such regulation.
    (e) Notwithstanding the requirements of paragraphs (c) and (d) of 
this section, a telephone company subject to rate-of-return regulation 
may return lines acquired from a telephone company subject to price cap 
regulation to rate-of-return regulation, provided that the acquired 
lines will not be subject to average schedule settlements, and provided 
further that the telephone company subject to rate-of-return regulation 
may not for five years elect price cap regulation for itself, or by any 
means cause the acquired lines to become subject to price cap 
regulation.

[55 FR 42382, Oct. 19, 1990; 55 FR 50558, Dec. 7, 1990, as amended at 56 
FR 55239, Oct. 25, 1991; 64 FR 46589, Aug. 26, 1999; 65 FR 38695, June 
21, 2000; 65 FR 57741, Sept. 26, 2000; 69 FR 25336, May 6, 2004; 76 FR 
43213, July 20, 2011]



Sec. 61.42  Price cap baskets and service categories.

    (a)-(c) [Reserved]
    (d) Each price cap local exchange carrier shall establish baskets of 
services as follows:
    (1) A basket for the common line, marketing, and certain residual 
interconnection charge interstate access elements as described in 
Sec. Sec. 69.115, 69.152, 69.153, 69.154, 69.155, 69.156, and 69.157 of 
this chapter. For purposes of Sec. Sec. 61.41 through 61.49, this 
basket shall be referred to as the ``CMT basket.''
    (2) A basket for traffic sensitive switched interstate access 
elements. For purposes of Sec. Sec. 61.41 through 61.49 of this 
chapter, this basket shall be referred to as the ``traffic-sensitive 
basket.''
    (3) A basket for trunking services as described in Sec. Sec. 
69.110, 69.111, 69.112, 69.125(b), 69.129, and 69.155 of this chapter. 
For purposes of Sec. Sec. 61.41 through 61.49, this basket shall be 
referred to as the ``trunking basket.''
    (4)(i) To the extent that a price cap local exchange carrier 
specified in Sec. 61.41(a)(2) or (a)(3) offers interstate interexchange 
services that are not classified as access services for the purpose of 
part 69 of this chapter, such exchange carrier shall establish a fourth 
basket for such services. For purposes of Sec. Sec. 61.41 through 
61.49, this basket shall be referred to as the ``interexchange basket.''
    (ii) If a price cap local exchange carrier has implemented interLATA 
and intraLATA toll dialing parity everywhere it provides local exchange 
services at the holding company level, that price cap carrier may file a 
tariff revision to remove corridor and interstate intraLATA toll 
services from its interexchange basket.
    (5) A basket for special access services as described in Sec. 
69.114 of this chapter.
    (e)(1) The traffic sensitive switched interstate access basket shall 
contain such services as the Commission shall permit or require, 
including the following service categories:
    (i) Local switching as described in Sec. 69.106(f) of this chapter;
    (ii) Information, as described in Sec. 69.109 of this chapter;
    (iii) Data base access services;

[[Page 254]]

    (iv) Billing name and address, as described in Sec. 69.128 of this 
chapter;
    (v) Local switching trunk ports, as described in Sec. 69.106(f)(1) 
of this chapter; and
    (vi) Signalling transfer point port termination, as described in 
Sec. 69.125(c) of this chapter.
    (2) The trunking basket shall contain such switched transport as the 
Commission shall permit or require, including the following service 
categories and subcategories:
    (i) Voice grade entrance facilities, voice grade direct-trunked 
transport, voice grade dedicated signalling transport,
    (ii) High capacity flat-rated transport, including the following 
service subcategories:
    (A) DS1 entrance facilities, DS1 direct-trunked transport, DS1 
dedicated signalling transport, and
    (B) DS3 entrance facilities, DS3 direct-trunked transport, DS3 
dedicated signalling transport.
    (iii) Tandem-switched transport, as described in Sec. 69.111 of 
this chapter; and
    (iv) Signalling for tandem switching, as described in Sec. 69.129 
of this chapter.
    (3) The special access basket shall contain special access services 
as the Commission shall permit or require, including the following 
service categories and subcategories:
    (i) Voice grade special access, WATS special access, metallic 
special access, and telegraph special access services;
    (ii) Audio and video services;
    (iii) High capacity special access, and DDS services, including the 
following service subcategories:
    (A) DS1 special access services; and
    (B) DS3 special access services;
    (iv) Wideband data and wideband analog services.
    (f) Each price cap local exchange carrier shall exclude from its 
price cap baskets such services or portions of such services as the 
Commission has designated or may hereafter designate by order.
    (g) New services, other than those within the scope of paragraph (f) 
of this section, must be included in the affected basket at the first 
annual price cap tariff filing following completion of the base period 
in which they are introduced. To the extent that such new services are 
permitted or required to be included in new or existing service 
categories within the assigned basket, they shall be so included at the 
first annual price cap tariff filing following completion of the base 
period in which they are introduced.

[54 FR 19842, May 8, 1989]

    Editorial Note: For Federal Register citations affecting Sec. 
61.42, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.fdsys.gov.



Sec. 61.43  Annual price cap filings required.

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

[76 FR 43214, July 20, 2011]



Sec. 61.44  [Reserved]



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

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

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

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

    Where the terms in the equation are described:


[[Page 255]]


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

    (ii) The X value applicable to the baskets specified in Sec. Sec. 
61.42(d)(1), (d)(2), and (d)(3), shall be 6.5%, to the extent necessary 
to reduce a tariff entity's ATS charge to its Target Rate as set forth 
in Sec. 61.3(qq). Once any price cap local exchange carrier tariff 
entity's ATS Charge is equal to the Target Rate as set forth in Sec. 
61.3(qq) for the first time (the former NYNEX telephone companies may be 
treated as a separate tariff entity), then, except as provided in 
paragraph (b)(1)(iii) of this section, X is equal to GDP-PI and no 
further reductions will be mandated (i.e., if applying the full X-factor 
reduction for a given year would reduce the ATS charge below the Target 
Rate as set forth in Sec. 61.3 (qq), the amount of X-factor reduction 
applied that year will be the amount necessary to reach the Target Rate 
as set forth in Sec. 61.3 (qq)). A filing entity does not reach the 
Target Rate as set forth in Sec. 61.3(qq) in any year in which it 
exercises an exogenous adjustment pursuant to Sec. 61.45(d)(vii). For 
companies with separate tariff entities under a single price cap, the 
following rules shall apply:
    (A) Targeting amounts as defined in Sec. 61.45(i)(1)(i) shall be 
identified separately, using the revenue for each of the tariff entities 
under the cap.
    (B) Each tariff entity shall only be required to use the amount of 
targeting necessary to get to the Target Rate as set forth in Sec. 61.3 
(qq).
    (iii)(A) Except as provided in paragraph (b)(1)(iii)(B) of this 
section, once the Tariff Entity's Target Rate as set forth in Sec. 61.3 
(qq) is achieved, the X-factor for the CMT basket will equal GDP-PI as 
long as GDP-PI is less than or equal to 6.5% and greater than 0%. If 
GDP-PI is greater than 6.5%, and an entity has eliminated its CCL and 
multi-line business PICCs charges, the X-factor for the CMT basket will 
equal 6.5%, and all End User Common Line charges, rates and nominal 
caps, will be increased by the difference between GDP-PI and the 6.5% X-
factor. If GDP-PI is less than 0, the X-factor for the CMT basket will 
be 0.
    (B) For tariff filing entities with a Target Rate of $0.0095, or for 
the portion of a filing entity consolidated pursuant to Sec. 61.48(o) 
that, prior to such consolidation, had a Target Rate of $0.0095, in 
which the ATS charge has achieved the Target Rate but in which the 
carrier common line (CCL) charge has not been eliminated, the X-factor 
for the CMT basket will be 6.5% until the earlier of June 30, 2004, or 
until CCL charges are eliminated pursuant to paragraph (i)(4) of this 
section. Thereafter, in any filing entity in which a CCL charge remains 
after July 1, 2004, the X-factor for the CMT basket will be determined 
pursuant to paragraph (b)(1)(iii)(A) of this section as if CCL charges 
were eliminated.

[[Page 256]]

    (iv) For the special access basket specified in Sec. 61.42(d)(5), 
the value of X shall be 3.0% for the 2000 annual filing. The value of X 
shall be 6.5% for the 2001, 2002 and 2003 annual filings. Starting in 
the 2004 annual filing, X shall be equal to GDP-PI for the special 
access basket.
    (v) For the interexchange basket specified in Sec. 61.42(d)(4), the 
value of X shall be 3.0% for all annual filings.
    (b)(2) Adjustments to price cap local exchange carrier PCIs and 
average price cap CMT revenue per line, in tariff filings other than the 
annual access tariff filing, for the CMT basket described in Sec. 
61.42(d)(1), the traffic sensitive basket described in Sec. 
61.42(d)(2), the trunking basket described in Sec. 61.42(d)(3), the 
interexchange basket described in Sec. 61.42(d)(4), and the special 
access basket described in Sec. 61.42(d)(5), shall be made pursuant to 
the formulas set forth in paragraph (b)(1)(i) of this section, except 
that the ``w(GDP-PI - X)'' component of those PCI formulas shall not be 
employed.
    (c) Effective July 1, 2000, the prices of the CMT basket rate 
elements, excluding special access surcharges under Sec. 69.115 of this 
chapter and line ports in excess of basic under Sec. 69.157 of this 
chapter, shall be set based upon Average Price Cap CMT Revenue per Line 
month.
    (d) The exogenous cost changes represented by the term ``Z'' in the 
formula detailed in paragraph (b)(1)(i) of this section shall be limited 
to those cost changes that the Commission shall permit or require by 
rule, rule waiver, or declaratory ruling.
    (1) Subject to further order of the Commission, those exogenous 
changes shall include cost changes caused by:
    (i) The completion of the amortization of depreciation reserve 
deficiencies;
    (ii) Such changes in the Uniform System of Accounts, including 
changes in the Uniform System of Accounts requirements made pursuant to 
Sec. 32.16 of this chapter, as the Commission shall permit or require 
be treated as exogenous by rule, rule waiver, or declaratory ruling;
    (iii) Changes in the Separations Manual;
    (iv) [Reserved]
    (v) The reallocation of investment from regulated to nonregulated 
activities pursuant to Sec. 64.901 of this chapter;
    (vi) Such tax law changes and other extraordinary cost changes as 
the Commission shall permit or require be treated as exogenous by rule, 
rule waiver, or declaratory ruling;
    (vii) Retargeting the PCI to the level specified by the Commission 
for carriers whose base year earnings are below the level of the lower 
adjustment mark, subject to the limitation in Sec. 69.731 of this 
chapter. The allocation of LFAM amounts will be allocated pursuant to 
Sec. 61.45(d)(3). This section shall not be applicable to tariff 
filings during the tariff year beginning July 1, 2000, but is applicable 
in subsequent years;
    (viii) Inside wire amortizations;
    (ix) The completion of amortization of equal access expenses.
    (2) Price cap local exchange carriers specified in Sec. Sec. 
61.41(a)(2) or (a)(3) shall, in their annual access tariff filing, 
recognize all exogenous cost changes attributable to modifications 
during the coming tariff year in their Subscriber Plant Factor and the 
Dial Equipment Minutes factor, and completions of inside wire 
amortizations and reserve deficiency amortizations.
    (3) Exogenous cost changes shall be apportioned on a cost-causative 
basis between price cap services as a group, and excluded services as a 
group. Total exogenous cost changes thus attributed to price cap 
services shall be recovered from services other than those used to 
calculate the ATS charge.
    (e) [Reserved]
    (f) The exogenous costs caused by new services subject to price cap 
regulation must be included in the appropriate PCI calculations under 
paragraphs (b) and (c) of this section beginning at the first annual 
price cap tariff filing following completion of the base period in which 
such services are introduced.
    (g) In the event that a price cap tariff becomes effective, which 
tariff results in an API value (calculated pursuant to Sec. 61.46) that 
exceeds the currently applicable PCI value, the PCI value shall be 
adjusted upward to equal the API value.
    (h) [Reserved]

[[Page 257]]

    (i)(1)(i) Price cap local exchange carriers that are recovering 
revenues through rates pursuant to Sec. Sec. 69.106, 69.108, 69.109, 
69.110, 69.111, 69.112, 69.113, 69.118, 69.123, 69.124, 69.125, 69.129, 
or Sec. 69.155 of this chapter shall target, to the extent necessary to 
reduce the ATS Charge to the Target Rate as set forth in Sec. 61.3 (qq) 
for the first time, any PCI reductions associated with the dollar impact 
of application of the (GDP-PI - X) portion of the formula in Sec. 
61.45(b)(1)(i) to the traffic sensitive and trunking baskets. In order 
to calculate the actual dollars to transfer to the trunking and traffic 
sensitive baskets, carriers will first determine the ``Targeted Revenue 
Differential'' that will be transferred to the trunking and traffic 
sensitive baskets to reduce the ATS Charge to the Target Rate as set 
forth in Sec. 61.3(qq). The Targeted Revenue Differential shall be 
applied only to the trunking and traffic sensitive baskets to the extent 
necessary to reduce the ATS charge to the Target Rate as set forth in 
Sec. 61.3 (qq), and shall not be applied to reduce the PCIs in any 
other basket or to reduce Average Price Cap CMT Revenue per Line month, 
except as provided in Sec. 61.45(i)(4).
    (ii) For the purposes of Sec. 61.45(i)(1)(i), Targeted Revenue 
Differential will be determined by adding together the following 
amounts:
    (A) R * (GDP-PI - X) for the traffic sensitive basket, trunking 
basket, and the CMT basket excluding CCL revenues; and
    (B) CCL Revenues * [(GDP-PI - X - (g / 2)] / [1 + (g / 2)]
    Where ``g'' is defined in Sec. 61.45(b)(1)(i).
    (2) Until a tariff entity's ATS Charge equals the Target Rate as set 
forth in Sec. 61.3 (qq) for the first time, the Targeted Revenue 
Differential will be targeted to reduce the following rates for that 
tariff filing entity, in order of priority:
    (i) To the residual per minute Transport Interconnection Charge, 
until that rate is $0.00; then
    (ii) To the Information Surcharge, until that rate is $0.00; then
    (iii) To the other Local Switching charges and Switched Transport 
charges until the tariff entity's ATS Rate equals the Target Rate as set 
forth in Sec. 61.3(qq) for the first time. In making these reductions, 
the reductions to Local Switching rates as a percentage of total X-
factor reductions must be greater than or equal to the percentage 
proportion of Local Switching revenues to the total sum of revenues for 
Local Switching, Local Switching Trunk Ports, Signalling Transfer Point 
Port Termination, Switched Direct Trunked Transport, Signalling for 
Switched Direct Trunked Transport, Entrance Facilities for switched 
access traffic, Tandem Switched Transport, and Signalling for Tandem 
Switching (i.e., Local Switching gets at least its proportionate share 
of reductions).
    (3) After a price cap local exchange carrier reaches the Target Rate 
as set forth in Sec. 61.3(qq), the ATS Rate will be recalculated each 
subsequent Annual Filing. This process will identify the new ATS Charge 
for the new base period level. Due to change in base period demand and 
inclusion of new services for that annual filing, the absolute level of 
a tariff entity's ATS Charge may change. The resulting new ATS Charge 
level will be what that tariff entity will be measured against during 
that base period. For example, if a company whose target is $0.0055 
reached the Target Rate during the 2000 annual filing, that level may 
change to $0.0058 in the 2001 annual filing due to change in demand and 
inclusion of new services. Therefore, it will be the $0.0058 average 
rate that the tariff entity will be measured against for all non-annual 
filings. Likewise, if that same company was at the Target Rate during 
the 2000 filing, that level may change to $0.0053 average rate in the 
2001 annual filing due to change in demand and inclusion of new 
services. In that case, it will be at the $0.0053 average rate that the 
tariff entity will be measured.
    (4) A company electing a $0.0095 Target Rate will, in the tariff 
year it reaches the Target Rate, apply any Targeted Revenue Differential 
remaining after reaching the Target Rate to reduce Average Price Cap CMT 
Revenue per Line month until the CCL charge is eliminated. In subsequent 
years, until the earlier of June 30, 2004 or when the CCL charge is 
eliminated,

[[Page 258]]

tariff filing entities with a Target Rate of $0.0095, or the portion of 
a filing entity consolidated pursuant to Sec. 61.48(o) that, prior to 
such consolidation, had a Target Rate of $0.0095, will reduce Average 
Price Cap CMT Revenue per Line month according to the following method:
    (i) Filing entity calculates the maximum allowable carrier common 
line revenue, as defined in Sec. 61.46(d)(1), that would be permitted 
in the absence of further adjustment pursuant to this paragraph;
    (ii) Filing entity identifies maximum amount of dollars available to 
reduce Average Price Cap CMT Revenue per Line month by the following:

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

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

[65 FR 38696, June 21, 2000; 65 FR 57741, Sept. 26, 2000; 76 FR 43214, 
July 20, 2011]



Sec. 61.46  Adjustments to the API.

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

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

Where:

APIt = the proposed API value,
APIt-1 = the existing API value,
Pt = the proposed price for rate element ``i,''
Pt-1 = the existing price for rate element ``i,'' and
vi = the current estimated revenue weight for rate element 
          ``i,'' calculated as the ratio of the base period demand for 
          the rate element ``i'' priced at the existing rate, to the 
          base period demand for the entire basket of services priced at 
          existing rates.

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

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

Where:

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

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

[65 FR 38698, June 21, 2000; 65 FR 57741, 57742, Sept. 26, 2000; 76 FR 
43214, July 20, 2011]

[[Page 259]]



Sec. 61.47  Adjustments to the SBI; pricing bands.

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

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

where

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

    (b) New services that are added to existing service categories or 
subcategories must be included in the appropriate SBI calculations under 
paragraph (a) of this section beginning at the first annual price cap 
tariff filing following completion of the base period in which they are 
introduced. This index adjustment requires that the demand for the new 
service during the base period must be included in determining the 
weights used in calculating the SBI.
    (c) In the event that the introduction of a new service requires the 
creation of a new service category or subcategory, a new SBI must be 
established for that service category or subcategory beginning at the 
first annual price cap tariff filing following completion of the base 
period in which the new service is introduced. The new SBI should be 
initialized at a value of 100, corresponding to the service category or 
subcategory rates in effect the last day of the base period, and 
thereafter should be adjusted as provided in paragraph (a) of this 
section.
    (d) Any price cap tariff filing proposing rate restructuring shall 
require an adjustment to the affected SBI pursuant to the general 
methodology described in paragraph (a) of this section. This adjustment 
requires the conversion of existing rates in the rate element group into 
rates of equivalent value under the proposed structure, and then the 
comparison of the existing rates that have been converted to reflect 
restructuring to the proposed restructured rates. This calculation may 
require use of carrier data and estimation techniques to assign 
customers of the preexisting service to those services (including the 
new restructured service) that will remain or become available after 
restructuring.
    (e) Pricing bands shall be established each tariff year for each 
service category and subcategory within a basket. Each band shall limit 
the pricing flexibility of the service category, subcategory, as 
reflected in the SBI, to an annual increase of a specified percent 
listed in this paragraph, relative to the percentage change in the PCI 
for that basket, measured from the levels in effect on the last day of 
the preceding tariff year. For local exchanage carriers subject to price 
cap regulation as that term is defined in Sec. 61.3(ee), there shall be 
no lower pricing band for any service category or subcategory.
    (1) Five percent:
    (i) Local Switching (traffic sensitive basket)
    (ii) Information (traffic sensitive basket)
    (iii) Database Access Services (traffic sensitive basket)
    (iv) 800 Database Vertical Services subservice (traffic sensitive 
basket)
    (v) Billing Name and Address (traffic sensitive basket)
    (vi) Local Switching Trunk Ports (traffic sensitive basket)
    (vii) Signalling Transfer Point Port Termination (traffic sensitive 
basket)
    (viii) Voice Grade (trunking and special access baskets)
    (ix) Audio/Video (special access basket)
    (x) Total High Capacity (trunking and special access baskets)
    (xi) DS1 Subservice (trunking and special access baskets)
    (xii) DS3 Subservice (trunking and special access baskets)
    (xiii) Wideband (special access basket)
    (2) Two percent:
    (i) Tandem-Switched Transport (trunking basket)

[[Page 260]]

    (ii) Signalling for Tandem Switching (trunking basket)
    (f) A price cap local exchange carrier may establish density zones 
pursuant to the requirements set forth in Sec. 69.123 of this chapter, 
for any service in the trunking and special access baskets, other than 
the interconnection charge set forth in Sec. 69.124 of this chapter. 
The pricing flexibility of each zone shall be limited to an annual 
increase of 15 percent, relative to the percentage change in the PCI for 
that basket, measured from the levels in effect on the last day of the 
preceding tariff year. There shall be no lower pricing band for any 
density zone.
    (g)-(i)(l) [Reserved]
    (2) Effective January 1, 1998, notwithstanding the requirements of 
paragraph (a) of this section, if a price cap local exchange carrier is 
recovering interconnection charge revenues through per-minute rates 
pursuant to Sec. 69.155 of this chapter, any reductions to the PCI for 
the basket designated in Sec. 61.42(d)(3) resulting from the 
application of the provisions of Sec. 61.45(b)(1)(i) and from the 
application of the provisions of Sec. Sec. 61.45(i)(1) and 61.45(i)(2) 
shall be directed to the SBI of the service category designated in Sec. 
61.42(d)(i).
    (3) [Reserved]
    (4) Effective January 1, 1998, the SBI reduction required by 
paragraph (i)(2) of this section shall be determined by dividing the sum 
of the dollar amount of any PCI reduction required by Sec. Sec. 
61.45(i)(1) and 61.45(i)(2), by the dollar amount associated with the 
SBI for the service category designated in Sec. 61.42(e)(2)(vi), and 
multiplying the SBI for the service category designated in Sec. 
61.42(e)(2)(vi) by one minus the resulting ratio.
    (5) Effective July 1, 2000, notwithstanding the requirements of 
paragraph (a) of this section and subject to the limitations of Sec. 
61.45(i), if a price cap local exchange carrier is recovering an ATS 
charge greater than its Target Rate as set forth in Sec. 61.3(qq), any 
reductions to the PCI for the traffic sensitive or trunking baskets 
designated in Sec. Sec. 61.42(d)(2) and 61.42(d)(3) resulting from the 
application of the provisions of Sec. 61.45(b), and the formula in 
Sec. 61.45(b) and from the application of the provisions of Sec. Sec. 
61.45(i)(1), and 61.45(i)(2) shall be directed to the SBIs of the 
service categories designated in Sec. Sec. 61.42(e)(1) and 61.42(e)(2).
    (j) [Reserved]
    (k) In no case shall a price cap local exchange carrier include data 
associated with services offered pursuant to contract tariff in the 
calculations required by this section.

[54 FR 19843, May 8, 1989]

    Editorial Note: For Federal Register citations affecting Sec. 
61.47, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.fdsys.gov.



Sec. 61.48  Transition rules for price cap formula calculations.

    (a)-(h) [Reserved]
    (i) Transport and Special Access Density Pricing Zone Transition 
Rules--(1) Definitions. The following definitions apply for purposes of 
paragraph (i) of this section:
    Earlier date is the earlier of the special access zone date and the 
transport zone date.
    Earlier service is special access if the special access zone date 
precedes the transport zone date, and is transport if the transport zone 
date precedes the special access zone date.
    Later date is the later of the special access zone date and the 
transport zone date.
    Later service is transport if the special access zone date precedes 
the transport zone date, and is special access if the transport zone 
date precedes the special access zone date.
    Revenue weight of a given group of services included in a zone 
category is the ratio of base period demand for the given service rate 
elements included in the category priced at existing rates, to the base 
period demand for the entire group of rate elements comprising the 
category priced at existing rates.
    Special access zone date is the date on which a local exchange 
carrier tariff establishing divergent special access rates in different 
zones, as described in Sec. 69.123(c) of this chapter, becomes 
effective.
    Transport zone date is the date on which a local exchange carrier 
tariff

[[Page 261]]

establishing divergent switched transport rates in different zones, as 
described in Sec. 69.123(d) of this chapter, becomes effective.
    (2) Simultaneous Introduction of Special Access and Transport Zones. 
Price cap local exchange carriers that have established density pricing 
zones pursuant to Sec. 69.123 of this chapter, and whose special access 
zone date and transport zone date occur on the same date, shall 
initially establish density pricing zone SBIs and bands pursuant to the 
methodology in Sec. Sec. 61.47(e) through (f).
    (3) Sequential Introduction of Zones in the Same Tariff Year. 
Notwithstanding Sec. Sec. 61.47(e) through (f), price cap local 
exchange carriers that have established density pricing zones pursuant 
to Sec. 69.123 of this chapter, and whose special access zone date and 
transport zone date occur on different dates during the same tariff 
year, shall, on the earlier date, establish density pricing zone SBIs 
and pricing bands using the methodology described in Sec. Sec. 61.47(e) 
through (f), but applicable to the earlier service only. On the later 
date, such carriers shall recalculate the SBIs and pricing bands to 
limit the pricing flexibility of the services included in each density 
pricing zone category, as reflected in its SBI, as follows:
    (i) The upper pricing band shall be a weighted average of the 
following:
    (A) The upper pricing band that applied to the earlier services 
included in the zone category on the day preceding the later date, 
weighted by the revenue weight of the earlier services included in the 
zone category; and
    (B) 1.05 times the SBI value for the services included in the zone 
category on the day preceding the later date, weighted by the revenue 
weight of the later services included in the zone category.
    (ii) [Reserved]
    (iii) On the later date, the SBI value for the zone category shall 
be equal to the SBI value for the category on the day preceding the 
later date.
    (4) Introduction of Zones in Different Tariff Years. Notwithstanding 
Sec. Sec. 61.47(e) through (f), those price cap local exchange carriers 
that have established density pricing zones pursuant to Sec. 69.123 of 
this chapter, and whose special access zone date and transport zone date 
do not occur within the same tariff year, shall, on the earlier date, 
establish density pricing zone SBIs and pricing bands using the 
methodology described in Sec. Sec. 61.47(e) through (f), but applicable 
to the earlier service only.
    (j)-(k) [Reserved]
    (l) Average Traffic Sensitive Revenues. (1) In the July 1, 2000 
annual filing, price cap local exchange carriers will make an additional 
reduction to rates comprising ATS charge, and to associated SBI upper 
limits and PCIs. This reduction will be calculated to be the amount that 
would be necessary to achieve a total $2.1 billion reduction in carrier 
common line and ATS rates by all price cap local exchange carriers, 
compared with those rates as they existed on June 30, 2000 using 2000 
annual filing base period demand.
    (i) The net change in revenue associated with Carrier Common Line 
Rate elements resulting from:
    (A) The removal from access of price cap local exchange carrier 
contributions to the Federal universal service mechanisms;
    (B) Price cap local exchange carrier receipts of interstate access 
universal service support pursuant to subpart J of part 54;
    (C) Changes in End User Common Line Charges and PICC rates;
    (D) Changes in Carrier Common Line charges due to GDP-PI - X 
targeting for $0.0095 filing entities.
    (ii) Reductions in Average Traffic Sensitive charges resulting from:
    (A) Targeting of the application of the (GDP-PI - X) portion of the 
formula in Sec. 61.45(b), and any applicable ``g'' adjustments;
    (B) The removal from access of price cap local exchange carrier 
contributions to the Federal universal service mechanisms;
    (C) Additional ATS charge reductions defined in paragraph (2) of 
this section.
    (2) Once the reductions in paragraph (l)(1)(i) and paragraphs 
(l)(1)(ii)(A) and (l)(1)(ii)(B) of this section are identified, the 
difference between those reductions and $2.1 billion is the total amount 
of additional reductions that would be made to ATS rates of price cap 
local exchange carriers. This amount will then be restated as the

[[Page 262]]

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

[[Page 263]]

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

[[Page 264]]

percentage of the total holding company's below-cap multi-line business 
PICC revenue.
    (x) If pooled local switching revenue is added to the multi-line 
business SLC but not to the multi-line business PICC for a filing entity 
that qualified to deaverage SLCs without regard to pooled local 
switching revenue, the resulting SLC rates can still be deaveraged. 
Total pooled local switching revenue is added to the deaveraged zone 1 
multi-line business SLC rate until the per line rate in zone 1 equals 
the rate in zone 2 or until the pooled local switching revenue is fully 
allocated to the deaveraged multi-line business SLC rate for zone 1. If 
pooled local switching revenue remains after the rate in zone 1 equals 
zone 2, the deaveraged rates of zone 1 and zone 2 are increased until 
the pooled local switching revenue is fully allocated to the deaveraged 
multi-line business SLC rates of zone 1 and 2 or until those rates reach 
the zone 3 multi-line business SLC rate level. This process continues 
until pooled local switching revenue is fully allocated to the zone 
deaveraged rates.
    (n) Establishment of the special access basket, effective July 1, 
2000.
    (1) On the effective date, the PCI value for the special access 
basket, as defined in Sec. 61.42(d)(5) shall be equal to the PCI for 
the trunking basket on the day preceding the establishment of the 
special access basket.
    (2) On the effective date, the API value for the special access 
basket, as defined in Sec. 61.42(d)(5) shall be equal to the API for 
the trunking basket on the day preceding the establishment of the 
special access basket.
    (3) Service Category, Subcategory, and Density Zone SBIs and Upper 
Limits.
    (i) Interconnection, Tandem Switched Transport, and Signalling 
Interconnec- tion will retain the SBIs and upper limits and remain in 
the trunking basket.
    (ii) Audio/Video and Wideband will retain the SBIs and upper limits 
and be moved into the special access basket.
    (iii) For Voice Grade, the SBIs and upper limits in both baskets 
will be equal to the SBIs and upper limits in the existing trunking 
basket on the day preceding the establishment of the special access 
basket. Voice Grade density zones in the trunking basket will retain 
their indices and upper limits. Voice Grade density zones will be 
initialized in the special access basket when services are first offered 
in them.
    (iv) For High Cap/DDS, DS1, and DS3 category and subcategories, the 
SBIs and upper limits in both baskets will be equal to the SBIs and 
upper limits in the existing trunking basket on the day preceding the 
establishment of the special access basket. SBIs and upper limits for 
services that are in both combined density zones and either DTT/EF or 
special access density zones will be calculated by using weighted 
averages of the indices in the affected zones.
    (v) For each DTT/EF-related zone remaining in the trunking basket, 
the values will be calculated by taking the sum of the products of the 
DTT/EF revenues times the DTT/EF index (or upper limit) and the DTT/EF-
related revenues in the combined zone times the combined index (or upper 
limit), and dividing by the total DTT/EF-related revenues for that zone.
    (vi) For each special access-related zone in the special access 
basket, the values will be calculated by taking the sum of the products 
of the special access revenues times the special access index (or upper 
limit) and the special access-related revenues in the combined zone 
times the combined index (or upper limit), and dividing by the total 
special access-related revenues for that zone.
    (o) Treatment of acquisitions of exchanges with different ATS Target 
Rates as set forth in Sec. 61.3(qq):
    (1) In the event that a price cap local exchange carrier acquires a 
filing entity or portion thereof from a price cap local exchange carrier 
after July 1, 2000, and the price cap local exchange carrier did not 
have a binding and executed contract to purchase that filing entity or 
portion thereof as of April 1, 2000, those properties retain their pre-
existing Target Rates as set forth in Sec. 61.3(qq). If those 
properties are merged into a filing entity with a different Target Rate 
as set forth in Sec. 61.3(qq), the Target Rate as set forth in Sec. 
61.3(qq) for the merged filing entity

[[Page 265]]

will be the weighted average of the Target Rates as set forth in Sec. 
61.3(qq) for the properties being combined into a single filing entity, 
with the average weighted by local switching minutes. When a property 
acquired as a result of a contract for purchase executed after April 1, 
2000 is merged with $0.0095 Target Rate properties, the obligation to 
apply price cap reductions to reduce CCL, pursuant to Sec. 
61.45(b)(iii) does not apply to the properties purchased under contracts 
executed after April 1, 2000, but continues to apply to the other 
properties.
    (2) For sale of properties for which a holding company was, as of 
April 1, 2000, under a binding and executed contract to purchase but 
which close after June 30, 2000, but during tariff year 2000, and that 
are subject to the $0.0095 Target Rate as set forth in Sec. 61.3(qq), 
the Average Traffic Sensitive Rate charged by the purchaser for that 
property will be the greater of $0.0095 or the Average Traffic Sensitive 
Rate for that property.

[54 FR 19843, May 8, 1989, as amended at 55 FR 42384, Oct. 19, 1990; 56 
FR 21617, May 10, 1991; 56 FR 55239, Oct. 25, 1991; 59 FR 10302, Mar. 4, 
1994; 60 FR 19528, Apr. 19, 1995; 60 FR 52346, Oct. 6, 1995; 62 FR 
31932, June 11, 1997; 64 FR 46590, Aug. 26, 1999; 65 FR 38699, June 21, 
2000; 65 FR 57742, 57743, Sept. 26, 2000; 76 FR 43214, July 20, 2011]



Sec. 61.49  Supporting information to be submitted with letters of transmittal 

for tariffs of carriers subject to price cap regulation.

    (a) Each price cap tariff filing must be accompanied by supporting 
materials sufficient to calculate required adjustments to each PCI, API, 
and SBI pursuant to the methodologies provided in Sec. Sec. 61.45, 
61.46, and 61.47, as applicable.
    (b) Each price cap tariff filing that proposes rates that are within 
applicable bands established pursuant to Sec. 61.47, and that results 
in an API value that is equal to or less than the applicable PCI value, 
must be accompanied by supporting materials sufficient to establish 
compliance with the applicable bands, and to calculate the necessary 
adjustment to the affected APIs and SBIs pursuant to Sec. Sec. 61.46 
and 61.47, respectively.
    (c) Each price cap tariff filing that proposes rates above the 
applicable band limits established in Sec. Sec. 61.47 (e) must be 
accompanied by supporting materials establishing substantial cause for 
the proposed rates.
    (d) Each price cap tariff filing that proposes rates that will 
result in an API value that exceeds the applicable PCI value must be 
accompanied by:
    (1) An explanation of the manner in which all costs have been 
allocated among baskets; and
    (2) Within the affected basket, a cost assignment slowing down to 
the lowest possible level of disaggregation, including a detailed 
explanation of the reasons for the prices of all rate elements to which 
costs are not assigned.
    (e) Each price cap tariff filing that proposes restructuring of 
existing rates must be accompanied by supporting materials sufficient to 
make the adjustments to each affected API and SBI required by Sec. Sec. 
61.46(c) and 61.47(d), respectively.
    (f)(1) [Reserved]
    (2) Each tariff filing submitted by a price cap local exchange 
carrier that introduces a new loop-based service, as defined in Sec. 
61.3(pp) of this part--including a restructured unbundled basic service 
element (BSE), as defined in Sec. 69.2(mm) of this chapter, that 
constitutes a new loop-based service--that is or will later be included 
in a basket, must be accompanied by cost data sufficient to establish 
that the new loop-based service or unbundled BSE will not recover more 
than a just and reasonable portion of the carrier's overhead costs.
    (3) A price cap local exchange carrier may submit without cost data 
any tariff filings that introduce new services, other than loop-based 
services.
    (4) A price cap local exchange carrier that has removed its corridor 
or interstate ntraLATA toll services from its interexchange basket 
pursuant to Sec. 61.42(d)(4)(ii), may submit its tariff filings for 
corridor or interstate intraLATA toll services without cost data.
    (g) Each tariff filing submitted by a price cap local exchange 
carrier that introduces a new loop-based service or a restructured 
unbundled basic service element (BSE), as defined in Sec. 69.2(mm)

[[Page 266]]

of this chapter, that is or will later be included in a basket, or that 
introduces or changes the rates for connection charge subelements for 
expanded interconnection, as defined in Sec. 69.121 of this chapter, 
must also be accompanied by:
    (1) The following, including complete explanations of the bases for 
the estimates.
    (i) A study containing a projection of costs for a representative 12 
month period; and
    (ii) Estimates of the effect of the new tariff on the traffic and 
revenues from the service to which the new tariff applies, the carrier's 
other service classifications, and the carrier's overall traffic and 
revenues. These estimates must include the projected effects on the 
traffic and revenues for the same representative 12 month period used in 
paragraph (g)(1)(i) of this section.
    (2) Working papers and statistical data. (i) Concurrently with the 
filing of any tariff change or tariff filing for a service not 
previously offered, the issuing carriers must file the working papers 
containing the information underlying the data supplied in response to 
paragraph (h)(1) of this section, and a clear explanation of how the 
working papers relate to that information.
    (ii) All statistical studies must be submitted and supported in the 
form prescribed in Sec. 1.363 of the Commission's rules.
    (h) Each tariff filing submitted by a price cap local exchange 
carrier that introduces or changes the rates for connection charge 
subelements for expanded interconnection, as defined in Sec. 69.121 of 
this chapter, must be accompanied by cost data sufficient to establish 
that such charges will not recover more than a just and reasonable 
portion of the carrier's overhead costs.
    (i) [Reserved]
    (j) For a tariff that introduces a system of density pricing zones, 
as described in Sec. 69.123 of this chapter, the carrier must, before 
filing its tariff, submit a density pricing zone plan including, inter 
alia, documentation sufficient to establish that the system of zones 
reasonably reflects cost-related characteristics, such as the density of 
total interstate traffic in central offices located in the respective 
zones, and receive approval of its proposed plan.
    (k) In accordance with Sec. Sec. 61.41 through 61.49, price cap 
local exchange carriers that elect to file their annual access tariff 
pursuant to section 204(a)(3) of the Communications Act shall submit 
supporting material for their interstate annual access tariffs, absent 
rate information, 90 days prior to July 1 of each year.
    (l) On each page of cost support material submitted pursuant to this 
section, the issuing carrier shall indicate the transmittal number under 
which that page was submitted.

[54 FR 19843, May 8, 1989]

    Editorial Note: For Federal Register citations affecting Sec. 
61.49, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.fdsys.gov.



Sec. 61.50  [Reserved]



  Subpart F_Formatting and Notice Requirements for Tariff Publications

    Source: 76 FR 43215, July 20, 2011, unless otherwise noted.



Sec. 61.51  Scope.

    The rules in this subpart apply to tariffs filed by issuing 
carriers, with the exception of the informational tariffs filed pursuant 
to 47 U.S.C. 226(h)(1)(A), unless otherwise noted.

[76 FR 43215, July 20, 2011]



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

    (a) Pages of tariffs must be numbered consecutively and designated 
as ``Original title page,'' ``Original page 1,'' ``Original page 2,'' 
etc.
    (1) All such pages must show, in the upper left-hand corner the name 
of the issuing carrier; in the upper right-hand corner the FCC number of 
the tariff, with the page designation directly below; in the lower left-
hand corner the issued date; in the lower right-hand corner the 
effective date; and at the bottom, center, the street address of the 
issuing officer. The carrier must also specify the issuing officer's 
title either at the bottom center of all tariff

[[Page 267]]

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

[49 FR 40869, Oct. 18, 1984, as amended at 58 FR 44906, Aug. 25, 1993; 
62 FR 5778, Feb. 7, 1997; 63 FR 35541, June 30, 1998; 76 FR 43215, July 
20, 2011]



Sec. 61.54  Composition of tariffs.

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

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

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

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

    (c)(1)(i) The page immediately following the title page must be 
designated as ``Original page 1'' and captioned ``Check Sheet.'' When 
the original tariff is filed, the check sheet must show the number of 
pages contained in the tariff. For example, ``Page 1 to 150, inclusive, 
of this tariff are effective as of the date shown.'' When new pages are 
added, they must be numbered in continuing sequence, and designated as 
``Original page -------- .'' For example, when the original tariff filed 
has 150 pages, the first page added after page 150 is to be designated 
as ``Original page 151,'' and the foregoing notation must be revised to 
include the added pages.
    (ii) Alternatively, the carrier is permitted to number its tariff 
pages, other than the check sheet, to reflect the section number of the 
tariff as well as the page. For example, under this system, pages in 
section 1 of the tariff would be numbered 1-1, 1-2, etc., and pages in 
section 2 of the tariff would be numbered 2-1, 2-2, etc. Issuing 
carriers

[[Page 268]]

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

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

    (ii) On each page, the carrier shall indicate the transmittal number 
under which that page was submitted.
    (4) Changes in, and additions to tariffs must be made by reprinting 
the page upon which a change or addition is made. Such changed page is 
to be designated as a revised page, cancelling the page which it amends. 
For example, ``First revised page 1 cancels original page 1,'' or 
``Second revised page 2 cancels first revised page 2,'' etc. When a 
revised page omits rates or regulations previously published on the page 
which it cancels, but such rates or regulations are published on another 
page, the revised page must make specific reference to the page on which 
the rates or regulations will be found. This reference must be 
accomplished by inserting a sentence at the bottom of the revised page 
that states ``Certain rates (or regulations) previously found on this 
page can now be found on page ------.'' In addition, the page on which 
the omitted material now appears must bear the appropriate symbol 
opposite such material, and make specific reference to the page from 
which the rates or regulations were transferred. This reference must be 
accomplished by inserting a sentence at the bottom of the other page 
that states ``Certain rates (or regulations) on this page formerly 
appeared on page --------.''
    (5) Rejected pages must be treated as indicated in Sec. 61.69.
    (d) Table of contents. The table of contents must contain a full and 
complete statement showing the exact location and specifying the page or 
section and page numbers, where information by subjects under general 
headings will be found. If a tariff contains so small a volume of matter 
that its title page or its interior arrangement plainly discloses its 
contents, the table of contents may be omitted.
    (e) Tariff User's guide. At its option, a carrier may include a 
section explaining how to use the tariff.
    (f) List of concurring carriers. This list must contain the exact 
name or names of carriers concurring in the tariff, alphabetically 
arranged, and the name of the city or town in which the principal office 
of every such carrier is located. If there are no concurring carriers, 
then the statement ``no concurring carriers'' must be made at the place 
where the names of the concurring carriers would otherwise appear. If 
the concurring carriers are numerous, their names may be stated in 
alphabetical order in a separate tariff filed with the Commission by the 
issuing carrier. Specific reference to such separate tariff by FCC 
number must be made in the tariff at the place where such names would 
otherwise appear.
    (g) List of connecting carriers. This list must contain the exact 
name or names

[[Page 269]]

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

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

    (2) The uniform symbols must be used as follows.
    (i) When a change of the same character is made in all or in 
substantially all matter in a tariff, it may be indicated at the top of 
the title page of the tariff or at the top of each affected page, in the 
following manner: ``All rates in this tariff are increases,'' or, ``All 
rates on this page are reductions, except as otherwise indicated.''
    (ii) When a change of the same character is made in all or 
substantially all matters on a page or supplement, it may be indiated at 
the top of the page or supplement in the following manner: All rates on 
this page (or supplement) are increases,'' or, ``All rates on this page 
(or supplement) are reductions except as otherwise indicated.''
    (3) Items which have not been in effect 30 days when brought forward 
on revised pages must be shown as reissued, in the manner prescribed in 
Sec. 61.54(i)(1). The number and original effective date of the tariff 
publication in which the matter was originally published must be 
associated with the reissued matter. Items which have been in effect 30 
days or more and are brought forward without change on revised pages 
must not be shown as reissued items.
    (j) Rates and general rules, regulations, exceptions and conditions. 
The general rules (including definitions), regulations, exceptions, and 
conditions which govern the tariff must be stated clearly and 
definitely. All general rules, regulations, exceptions or conditions 
which in any way affect the rates named in the tariff must be specified. 
A special rule, regulation, exception or condition affecting a 
particular item or rate must be specifically referred to in connection 
with such item or rate. Rates must be expressed in United States 
currency, per chargeable unit of service for all communication services, 
together with a list of all points of service to and from which the 
rates apply. They must be arranged in a simple and systematic manner. 
Complicated or ambiguous terminology may not be used, and no rate, rule, 
regulation, exception or condition shall be included

[[Page 270]]

which in any way attempts to substitute a rate, rule, regulation, 
exception or condition named in any other tariff.

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



Sec. 61.55  Contract-based tariffs.

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

[64 FR 51266, Sept. 22, 1999, as amended at 76 FR 43216, July 20, 2011]



Sec. 61.58  Notice requirements.

    (a) Every proposed tariff filing must bear an effective date and, 
except as otherwise provided by regulation, special permission, or 
Commission order, must be made on at least the number of days notice 
specified in this section.
    (1) Notice is accomplished by filing the proposed tariff changes 
with the Commission. Any period of notice specified in this section 
begins on and includes the date the tariff is received by the 
Commission, but does not include the effective date. If a tariff filing 
proposes changes governed by more than one of the notice periods listed 
below, the longest notice period will apply. In computing the notice 
period required, all days including Sundays and holidays must be 
counted.
    (2)(i) Local exchange carriers may file tariffs pursuant to the 
streamlined tariff filing provisions of section 204(a)(3) of the 
Communications Act. Such a tariff may be filed on 7 days' notice if it 
proposes only rate decreases. Any other tariff filed pursuant to section 
204(a)(3) of the Communications Act, including those that propose a rate 
increase or any change in terms and conditions, shall be filed on 15 
days' notice. Any tariff filing made pursuant to section 204(a)(3) of 
the Communications Act must comply with the applicable cost support 
requirements specified in this part.
    (ii) Local exchange carriers may elect not to file tariffs pursuant 
to section 204(a)(3) of the Communications Act. For dominant carriers, 
any such tariffs shall be filed on at least 16 days' notice. For 
nondominant carriers, any such tariffs shall be filed on at least one 
days' notice.
    (iii) Except for tariffs filed pursuant to section 204(a)(3) of the 
Communications Act, the Chief, Wireline Competition Bureau, may require 
the deferral of the effective date of any filing made on less than 120 
days' notice, so as to provide for a maximum of 120 days' notice, or of 
such other maximum period of notice permitted by section 203(b) of the 
Communications Act, regardless of whether petitions under Sec. 1.773 of 
this chapter have been filed.
    (3) Tariff filings proposing corrections or voluntarily deferring 
the effective date of a pending tariff revision must be made on at least 
3 days' notice, and may be filed notwithstanding the provisions of Sec. 
61.59. Corrections to tariff materials not yet effective cannot take 
effect before the effective date of the original material. Deferrals 
must take effect on or before the current effective date of the pending 
tariff revisions being deferred.
    (4) This subsection applies only to dominant carriers. If the tariff 
publication would increase any rate or charge, or would effectuate and 
authorized discountinuance, reduction or other impairment of service to 
any customer, the offering carrier must inform the affected customers of 
the content of the tariff publication. Such notification should be made 
in a form appropriate to the circumstance, and may include written 
notification, personal contact, or advertising in newspapers of general 
circulation.

[[Page 271]]

    (b) Tariffs for new services filed by price cap local exchange 
carriers shall be filed on at least one day's notice.
    (c) Contract-based tariffs filed by price cap local exchange 
carriers pursuant to Sec. 69.727(a) of this chapter shall be filed on 
at least one day's notice.
    (d)(1) A price cap local exchange carrier that is filing a tariff 
revision to remove its corridor or interstate intraLATA toll services 
from its interexchange basket pursuant to Sec. 61.42(d)(4)(ii) shall 
submit such filing on at least fifteen days' notice.
    (2) A price cap local exchange carrier that has removed its corridor 
and interstate intraLATA toll services from its interexchange basket 
pursuant to Sec. 61.42(d)(4)(ii) shall file subsequent tariff filings 
for corridor or interstate intraLATA toll services on at least one day's 
notice.
    (e) Non-price cap local exchange carriers and/or services. (1) 
Tariff filings in the instances specified in paragraphs (e)(1) (i), 
(ii), and (iii) of this section by dominant carriers must be made on at 
least 15 days' notice.
    (i) Tariffs filed in the first instance by new carriers.
    (ii) Tariffs filings involving new rates and regulations not 
previously filed at, from, to or via points on new lines; at, from to or 
via new radio facilities; or for new points of radio communication.
    (iii) Tariff filings involving a change in the name of a carrier, a 
change in Vertical or Horizontal coordinates (or other means used to 
determine airline mileages), a change in the lists of mileages, a change 
in the lists of connecting, concurring or other participating carriers, 
text changes, or the imposition of termination charges calculated from 
effective tariff provisions. The imposition of termination charges does 
not include the initial filing of termination liability provisions.
    (2) Tariff filings involving a change in rate structure, a new 
offering, or a rate increase must be made on at least 45 days' notice.
    (3) Alascom, Inc. shall file its annual tariff revisions for its 
Common Carrier Services (Alascom Tariff F.C.C No. 11) on at least 35 
days' notice.
    (4) All tariff filings not specifically assigned a different period 
of public notice in this part must be made on at least 35 days' notice.
    (f) All tariff filings of domestic and international non-dominant 
carriers must be made on at least one days' notice.

[49 FR 40869, Oct. 18, 1984, as amended at 54 FR 19844, May 8, 1989; 55 
FR 42384, Oct. 19, 1990; 56 FR 1500, Jan. 15, 1991; 56 FR 5956, Feb. 14, 
1991; 56 FR 55239, Oct. 25, 1991; 58 FR 36149, July 6, 1993; 59 FR 
10304, Mar. 4, 1994; 62 FR 5778, Feb. 7, 1997; 64 FR 46591, Aug. 26, 
1999; 64 FR 51266, Sept. 22, 1999; 67 FR 13228, Mar. 21, 2002; 76 FR 
43216, July 20, 2011]



Sec. 61.59  Effective period required before changes.

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

[64 FR 46592, Aug. 26, 1999, as amended at 76 FR 43216, July 20, 2011]



    Subpart G_Specific Rules for Tariff Publications of Dominant and 

                          Nondominant Carriers

    Source: 49 FR 40869, Oct. 18, 1984. Redesignated at 76 FR 43215, 
July 20, 2011 unless otherwise noted.



Sec. 61.66  Scope.

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

[76 FR 43216, July 20, 2011]



Sec. 61.68  Special notations.

    (a) Any tariff filing made pursuant to an Application for Special 
Permission,

[[Page 272]]

Commission decision or order must contain the following statement:

    Issued under authority of (specific reference to the special 
permission, Commission decision, or order) of the Commission.

    (b) When a portion of any tariff publication is issued in order to 
comply with the Commission order, the following notation must be 
associated with that portion of the tariff publication:

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

[49 FR 40869, Oct. 18, 1984, as amended at 76 FR 43216, July 20, 2011]



Sec. 61.69  Rejection.

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

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

[64 FR 46592, Aug. 26, 1999]



Sec. 61.72  Public information requirements.

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

[64 FR 46592, Aug. 26, 1999]



Sec. 61.73  Duplication of rates or regulations.

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



Sec. 61.74  References to other instruments.

    (a) Except as otherwise provided in this and other sections of this 
part, no tariff publication filed with the Commission may make reference 
to any other tariff publication or to any other document or instrument.
    (b) Tariffs for end-on-end through services may reference the 
tariffs of other carriers participating in the offering.
    (c) Tariffs may reference concurrences for the purpose of starting 
where rates or regulations applicable to a service not governed by the 
tariff may be found.
    (d) Tariffs may reference other FCC tariffs that are in effect and 
on file with the Commission for purposes of determining mileage, or 
specifying the operating centers at which a specific service is 
available.
    (e) Tariffs may reference technical publications which describe the 
engineering, specifications, or other technical aspects of a service 
offering, provided the following conditions are satisfied:
    (1) The tariff must contain a general description of the service 
offering, including basic parameters and structural elements of the 
offering;
    (2) The technical publication includes no rates, regulatory terms, 
or conditions which are required to be contained in the tariff, and any 
revisions to the technical publication do not affect rates, regulatory 
terms, or conditions included in the tariff, and do not change the basic 
nature of the offering;
    (3) The tariff indicates where the technical publication can be 
obtained;
    (4) The referenced technical publication is publicly available 
before the tariff is scheduled to take effect; and
    (5) The issuing carrier regularly revises its tariff to refer to the 
current

[[Page 273]]

edition of the referenced technical publication.

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



Sec. 61.83  Consecutive numbering.

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

[76 FR 43216, July 20, 2011]



Sec. 61.86  Supplements.

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

[76 FR 43216, July 20, 2011]



Sec. 61.87  Cancellation of tariffs.

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

[64 FR 46591, Aug. 26, 1999, as amended at 76 FR 43216, July 20, 2011]



                         Subpart H_Concurrences

    Source: 49 FR 40869, Oct. 18, 1984. Redesignated at 76 FR 43215, 
July 20, 2011, unless otherwise noted.



Sec. 61.131  Scope.

    Sections 61.132 through 61.136 apply to a carrier which must file 
concurrences reflecting rates and regulations for through service 
provided in conjunction with other carriers and to a carrier which has 
chosen, as an alternative to publishing its own tariff, to arrange 
concurrence in an effective tariff of another carrier. Limited or 
partial concurrences will not be permitted.



Sec. 61.132  Method of filing concurrences.

    A carrier proposing to concur in another carrier's effective tariff 
must deliver one copy of the concurrence to the issuing carrier in whose 
favor the concurrence is issued. The concurrence must be signed by an 
officer or agent of the carrier executing the concurrence, and must be 
numbered consecutively in a separate series from its FCC tariff numbers. 
At the same time the issuing carrier revises its tariff to reflect such 
a concurrence, it must file one copy of the concurrence electronically 
with

[[Page 274]]

the Commission in accordance with the requirements set forth in Sec. 
61.13 through Sec. 61.17. The concurrence must bear the same effective 
date as the date of the tariff filing reflecting the concurrence. 
Carriers shall file revisions reflecting concurrences in their tariffs 
on the notice period specified in Sec. 61.58.

[76 FR 43216, July 20, 2011]



Sec. 61.133  Format of concurrences.

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

                               Concurrence

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

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

                                 Tariff

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

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

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



Sec. 61.134  Concurrences for through services.

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

[76 FR 43216, July 20, 2011]



Sec. 61.135  Concurrences for other purposes.

    When an issuing carrier permits another carrier to concur in its 
tariff, the issuing carrier's tariff must state the

[[Page 275]]

concurring carrier's rates and points of service.



Sec. 61.136  Revocation of concurrences.

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

                            Revocation Notice

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

(Name of carrier)_______________________________________________________
By______________________________________________________________________
(Title)_________________________________________________________________



    Subpart I_Adoption of Tariffs and Other Documents of Predecessor 

                                Carriers



Sec. 61.171  Adoption notice.

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

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



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

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



                          Subpart J_Suspensions



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

    If an issuing carrier is notified by the Commission that its tariff 
publication has been suspended, the carrier must file, within five 
business days from the release date of the suspension order, a 
consecutively numbered supplement without an effective date, which 
specifies the schedules which have been suspended.

[76 FR 43217, July 20, 2011]



Sec. 61.192  Contents of supplement announcing suspension.

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



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

    If the Commission vacates a suspension order, the affected carrier 
must

[[Page 276]]

issue a supplement or revised page stating the Commission's action as 
well as the lawful schedules.



PART 63_EXTENSION OF LINES, NEW LINES, AND DISCONTINUANCE, REDUCTION, OUTAGE 

AND IMPAIRMENT OF SERVICE BY COMMON CARRIERS; AND GRANTS OF RECOGNIZED PRIVATE 

OPERATING AGENCY STATUS--Table of Contents



                       Extensions and Supplements

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

    General Provisions Relating to All Applications Under Section 214

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

            Discontinuance, Reduction, Outage and Impairment

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

                   Contents of Applications; Examples

63.500 Contents of applications to dismantle or remove a trunk line.
63.501 Contents of applications to sever physical connection or to 
          terminate or suspend interchange of traffic with another 
          carrier.
63.504 Contents of applications to close a public toll station where no 
          other such toll station of the applicant in the community will 
          continue service and where telephone toll service is not 
          otherwise available to the public through a telephone exchange 
          connected with the toll lines of a carrier.
63.505 Contents of applications for any type of discontinuance, 
          reduction, or impairment of telephone service not specifically 
          provided for in this part.
63.601 Contents of applications for authority to reduce the hours of 
          service of public coast stations under the conditions 
          specified in Sec. 63.70.

    Request for Designation as a Recognized Private Operating Agency

63.701 Contents of application.
63.702 Form.

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

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

[[Page 277]]

                       Extensions and Supplements



Sec. 63.01  Authority for all domestic common carriers.

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

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



Sec. 63.02  Exemptions for extensions of lines and for systems for the 

delivery of video programming.

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

[64 FR 39939, July 23, 1999]



Sec. 63.03  Streamlining procedures for domestic transfer of control 

applications.

    Any domestic carrier that seeks to transfer control of lines or 
authorization to operate pursuant to section 214 of the Communications 
Act of 1934, as amended, shall be subject to the following procedures:
    (a) Public notice and review period. Upon determination by the 
Common Carrier Bureau that the applicants have filed a complete 
application and that the application is appropriate for streamlined 
treatment, the Common Carrier Bureau will issue a public notice stating 
that the application has been accepted for filing as a streamlined 
application. Unless otherwise notified by the Commission, an applicant 
is permitted to transfer control of the domestic lines or authorization 
to operate on the 31st day after the date of public notice listing a 
domestic section 214 transfer of control application as accepted for 
filing as a streamlined application, but only in accordance with the 
operations proposed in its application. Comments on streamlined 
applications may be filed during the first 14 days following public 
notice, and reply comments may be filed during the first 21 days 
following public notice, unless the public notice specifies a different 
pleading cycle. All comments on streamlined applications shall be filed 
electronically, and shall satisfy such other filing requirements as may 
be specified in the public notice.
    (b) Presumptive streamlined categories. (1) The streamlined 
procedures provided in this rule shall be presumed to apply to all 
transfer of control applications in which:
    (i) Both applicants are non-facilities-based carriers;
    (ii) The transferee is not a telecommunications provider; or
    (iii) The proposed transaction involves only the transfer of the 
local exchange assets of an incumbent LEC by means other than an 
acquisition of corporate control.
    (2) Where a proposed transaction would result in a transferee having 
a market share in the interstate, interexchange market of less than 10 
percent, and the transferee would provide competitive telephone exchange 
services or exchange access services (if at all) exclusively in 
geographic areas served by a dominant local exchange carrier that is not 
a party to the transaction, the streamlined procedures provided in this 
rule shall be presumed to apply to transfer of control applications in 
which:
    (i) Neither of the applicants is dominant with respect to any 
service;
    (ii) The applicants are a dominant carrier and a non-dominant 
carrier that provides services exclusively outside the geographic area 
where the dominant carrier is dominant; or
    (iii) The applicants are incumbent independent local exchange 
carriers (as defined in Sec. 64.1902 of this chapter) that have, in 
combination, fewer than two (2) percent of the nation's subscriber

[[Page 278]]

lines installed in the aggregate nationwide, and no overlapping or 
adjacent service areas.
    (3) For purposes of (b)(1) and (2) of this paragraph, the terms 
``applicant,'' ``carrier,'' ``party,'' and ``transferee'' (and their 
plural forms) include any affiliates of such entities within the meaning 
of section 3(1) of the Communications Act of 1934, as amended.
    (c) Removal of application from streamlined processing. (1) At any 
time after an application is filed, the Commission, acting through the 
Chief of the Wireline Competition Bureau, may notify an applicant that 
its application is being removed from streamlined processing, or will 
not be subject to streamlined processing. Examples of appropriate 
circumstances for such action are:
    (i) An application is associated with a non-routine request for 
waiver of the Commission's rules;
    (ii) An application would, on its face, violate a Commission rule or 
the Communications Act;
    (iii) An applicant fails to respond promptly to Commission 
inquiries;
    (iv) Timely-filed comments on the application raise public interest 
concerns that require further Commission review; or
    (v) The Commission, acting through the Chief of the Wireline 
Competition Bureau, otherwise determines that the application requires 
further analysis to determine whether a proposed transfer of control 
would serve the public interest.
    (2) Notification will be by public notice that states the reason for 
removal or non-streamlined treatment, and indicates the expected 
timeframe for Commission action on the application. Except in 
extraordinary circumstances, final action on the application should be 
expected no later than 180 days from public notice that the application 
has been accepted for filing.
    (d) Pro forma transactions. (1) Any party that would be a domestic 
common carrier under section 214 of the Communications Act of 1934, as 
amended, is authorized to undertake any corporate restructuring, 
reorganization or liquidation of internal business operations that does 
not result in a change in ultimate ownership or control of the carrier's 
lines or authorization to operate, including transfers in bankruptcy 
proceedings to a trustee or to the carrier itself as a debtor-in-
possession. \1\ Under this rule, a transfer of control of a domestic 
line or authorization to operate is considered pro forma when, together 
with all previous internal corporate restructurings, the transaction 
does not result in a change in the carrier's ultimate ownership or 
control, or otherwise falls into one of the illustrative categories 
found in Sec. 63.24 of this part governing transfers of control of 
international carriers under section 214 of the Communications Act of 
1934, as amended.
---------------------------------------------------------------------------

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

    (2) Any party that would be a domestic common carrier under section 
214 of the Communications Act of 1934, as amended, must notify the 
Commission no later than 30 days after control of the carrier is 
transferred to a trustee under Chapter 7 of the Bankruptcy Code, a 
debtor-in-possession under Chapter 11 of the Bankruptcy Code, or any 
other party pursuant to any applicable chapter of the Bankruptcy Code 
when that transfer does not result in a change in ultimate ownership or 
control of the carrier's lines or authorization to operate. The 
notification can be in the form of a letter (in duplicate to the 
Secretary). The letter or other form of notification must also contain 
the information listed in paragraphs (a)(1) through (a)(4) in Sec. 
63.04. A single letter may be filed for more than one such transfer of 
control. If a carrier files a discontinuance request within 30 days of 
the transfer in bankruptcy, the Commission will treat the discontinuance 
request as sufficient to fulfill the pro forma post-transaction notice 
requirement.
    (3) Notwithstanding any other provision in this part, any party that 
would be a domestic common carrier under section 214 of the 
Communications Act of 1934, as amended, including a carrier that begins 
providing service through a differently named subsidiary after an

[[Page 279]]

internal corporate restructuring, remains subject to all applicable 
conditions of service after an internal restructuring, such as rules 
governing slamming and tariffing.

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



Sec. 63.04  Filing procedures for domestic transfer of control applications

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

[67 FR 18832, Apr. 17, 2002]



Sec. 63.09  Definitions applicable to international Section 214 

authorizations.

    The following definitions shall apply to Sec. Sec. 63.09-63.24 of 
this part, unless the context indicates otherwise:
    (a) Facilities-based carrier means a carrier that holds an 
ownership, indefeasible-right-of-user, or leasehold interest in bare 
capacity in the U.S. end of an international facility, regardless of 
whether the underlying facility is a common carrier or non-common 
carrier submarine cable or a satellite system.
    (b) Control includes actual working control in whatever manner 
exercised and is not limited to majority stock ownership. Control also 
includes direct or indirect control, such as through intervening 
subsidiaries.
    (c) Special concession is defined as in Sec. 63.14(b) of this part.
    (d) Foreign carrier is defined as any entity that is authorized 
within a foreign country to engage in the provision of international 
telecommunications services offered to the public in that country within 
the meaning of the

[[Page 280]]

International Telecommunication Regulations, see Final Acts of the World 
Administrative Telegraph and Telephone Conference, Melbourne, 1988 
(WATTC-88), Art. 1, which includes entities authorized to engage in the 
provision of domestic telecommunications services if such carriers have 
the ability to originate or terminate telecommunications services to or 
from points outside their country.
    (e) Two entities are affiliated with each other if one of them, or 
an entity that controls one of them, directly or indirectly owns more 
than 25 percent of the capital stock of, or controls, the other one.
    Also, a U.S. carrier is affiliated with two or more foreign carriers 
if the foreign carriers, or entities that control them, together 
directly or indirectly own more than 25 percent of the capital stock of, 
or control, the U.S. carrier and those foreign carriers are parties to, 
or the beneficiaries of, a contractual relation (e.g., a joint venture 
or market alliance) affecting the provision or marketing of 
international basic telecommunications services in the United States.
    (f) Market power means sufficient market power to affect competition 
adversely in the U.S. market.
    (g) As used in this part, the term:
    (1) Interlocking directorates shall mean persons or entities who 
perform the duties of ``officer or director'' in an authorized U.S. 
international carrier or an applicant for international Section 214 
authorization who also performs such duties for any foreign carrier.
    (2) Officer or director shall include the duties, or any of the 
duties, ordinarily performed by a director, president, vice president, 
secretary, treasurer, or other officer of a carrier.

    Note 1: The assessment of ``capital stock'' ownership will be made 
under the standards developed in Commission case law for determining 
such ownership. See, e.g., Fox Television Stations, Inc., 10 FCC Rcd 
8452 (1995). ``Capital stock'' includes all forms of equity ownership, 
including partnership interests.
    Note 2: Ownership and other interests in U.S. and foreign carriers 
will be attributed to their holders and deemed cognizable pursuant to 
the following criteria: Attribution of ownership interests in a carrier 
that are held indirectly by any party through one or more intervening 
corporations will be determined by successive multiplication of the 
ownership percentages for each link in the vertical ownership chain and 
application of the relevant attribution benchmark to the resulting 
product, except that wherever the ownership percentage for any link in 
the chain that is equal to or exceeds 50 percent or represents actual 
control, it shall be treated as if it were a 100 percent interest. For 
example, if A owns 30 percent of company X, which owns 60 percent of 
company Y, which owns 26 percent of ``carrier,''' then X's interest in 
``carrier''' would be 26 percent (the same as Y's interest because X's 
interest in Y exceeds 50 percent), and A's interest in ``carrier''' 
would be 7.8 percent (0.30x0.26 because A's interest in X is less than 
50 percent). Under the 25 percent attribution benchmark, X's interest in 
``carrier''' would be cognizable, while A's interest would not be 
cognizable.

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



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

    (a) Unless otherwise determined by the Commission, any party 
authorized to provide an international communications service under this 
part shall be classified as either dominant or non-dominant for the 
provision of particular international communications services on 
particular routes as set forth in this section. The rules set forth in 
this section shall also apply to determinations of regulatory status 
pursuant to Sec. Sec. 63.11 and 63.13. For purposes of paragraphs 
(a)(2) and (a)(3) of this section, the relevant markets on the foreign 
end of a U.S. international route include: international transport 
facilities or services, including cable landing station access and 
backhaul facilities; inter-city facilities or services; and local access 
facilities or services on the foreign end of a particular route.
    (1) A U.S. carrier that has no affiliation with, and that itself is 
not, a foreign carrier in a particular country to which it provides 
service (i.e., a destination country) shall presumptively be considered 
non-dominant for the provision of international communications services 
on that route;
    (2) Except as provided in paragraph (a)(4) of this section, a U.S. 
carrier that is, or that has or acquires an affiliation

[[Page 281]]

with a foreign carrier that is a monopoly provider of communications 
services in a relevant market in a destination country shall 
presumptively be classified as dominant for the provision of 
international communications services on that route; and
    (3) A U.S. carrier that is, or that has or acquires an affiliation 
with a foreign carrier that is not a monopoly provider of communications 
services in a relevant market in a destination country and that seeks to 
be regulated as non-dominant on that route bears the burden of 
submitting information to the Commission sufficient to demonstrate that 
its foreign affiliate lacks sufficient market power on the foreign end 
of the route to affect competition adversely in the U.S. market. If the 
U.S. carrier demonstrates that the foreign affiliate lacks 50 percent 
market share in the international transport and the local access markets 
on the foreign end of the route, the U.S. carrier shall presumptively be 
classified as non-dominant.
    (4) A carrier that is authorized under this part to provide to a 
particular destination an international switched service, and that 
provides such service solely through the resale of an unaffiliated U.S. 
facilities-based carrier's international switched services (either 
directly or indirectly through the resale of another U.S. resale 
carrier's international switched services), shall presumptively be 
classified as non-dominant for the provision of the authorized service. 
A carrier regulated as non-dominant pursuant to this subparagraph shall 
notify the Commission at any time that it begins to provide such service 
through the resale of an affiliated U.S. facilities-based carrier's 
international switched services. The carrier will be deemed a dominant 
carrier on the route absent a Commission finding that the carrier 
otherwise qualifies for non-dominant regulation pursuant to this 
section.
    (b) Any party that seeks to defeat the presumptions in paragraph (a) 
of this section shall bear the burden of proof upon any issue it raises 
as to the proper classification of the U.S. carrier.
    (c) Any carrier classified as dominant for the provision of 
particular services on particular routes under this section shall comply 
with the following requirements in its provision of such services on 
each such route:
    (1) Provide services as an entity that is separate from its foreign 
carrier affiliate, in compliance with the following requirements:
    (i) The authorized carrier shall maintain separate books of account 
from its affiliated foreign carrier. These separate books of account do 
not need to comply with part 32 of this chapter; and
    (ii) The authorized carrier shall not jointly own transmission or 
switching facilities with its affiliated foreign carrier. Nothing in 
this section prohibits the U.S. carrier from sharing personnel or other 
resources or assets with its foreign affiliate;
    (2) File quarterly reports on traffic and revenue within 90 days 
from the end of each calendar quarter consistent with the format set out 
by the Sec. 43.62 filing manual.
    (3) File quarterly reports summarizing the provisioning and 
maintenance of all basic network facilities and services procured from 
its foreign carrier affiliate or from an allied foreign carrier, 
including, but not limited to, those it procures on behalf of customers 
of any joint venture for the provision of U.S. basic or enhanced 
services in which the authorized carrier and the foreign carrier 
participate, within 90 days from the end of each calendar quarter. These 
reports should contain the following: the types of circuits and services 
provided; the average time intervals between order and delivery; the 
number of outages and intervals between fault report and service 
restoration; and for circuits used to provide international switched 
service, the percentage of ``peak hour'' calls that failed to complete;
    (4) In the case of an authorized facilities-based carrier, file 
quarterly, within 90 days from the end of each calendar quarter, a 
report of its active and idle 64 kbps or equivalent circuits by facility 
(terrestrial, satellite and submarine cable).
    (5) If authorized to provide facilities-based service, comply with 
paragraph (e) of this section.

[[Page 282]]

    (d) A carrier classified as dominant under this section shall file 
an original and two copies of each report required by paragraphs (c)(3), 
(c)(4), and (c)(5) of this section with the Chief, International Bureau. 
The carrier shall also file one copy of these reports with the 
Commission's copy contractor. The transmittal letter accompanying each 
report shall clearly identify the report as responsive to the 
appropriate paragraph of Sec. 63.10(c).
    (e) Except as otherwise ordered by the Commission, a carrier that is 
classified as dominant under this section for the provision of 
facilities-based services on a particular route and that is affiliated 
with a carrier that collects settlement payments for terminating U.S. 
international switched traffic at the foreign end of that route may not 
provide switched facilities-based service on that route unless the 
current rates the affiliate charges U.S. international carriers to 
terminate traffic are at or below the Commission's relevant benchmark 
adopted in IB Docket No. 96-261. See FCC 97-280 (rel. Aug. 18, 1997) 
(available at the FCC's Reference Operations Division, Washington, D.C. 
20554, and on the FCC's World Wide Web Site at http://www.fcc.gov).

[62 FR 64752, Dec. 9, 1997, as amended at 64 FR 19062, Apr. 19, 1999; 64 
FR 46593, Aug. 26, 1999; 64 FR 47702, Sept. 1, 1999; 66 FR 16881, Mar. 
28, 2001; 67 FR 45390, July 9, 2002; 78 FR 15623, Mar. 12, 2013]

    Effective Date Note: At 78 FR 15623, Mar. 12, 2013, Sec. 63.10 was 
amended by revising paragraphs (c)(2) and (c)(4). These paragraphs 
contain information collection and recordkeeping requirements and will 
not become effective until approval has been given by the Office of 
Management and Budget.



Sec. 63.11  Notification by and prior approval for U.S. international carriers 

that are or propose to become affiliated with a foreign carrier.

    If a carrier is authorized by the Commission (``authorized 
carrier'') to provide service between the United States and a particular 
foreign destination market and it becomes, or seeks to become, 
affiliated with a foreign carrier that is authorized to operate in that 
market, then its authorization to provide that international service is 
conditioned upon notifying the Commission of that affiliation.
    (a) Affiliations requiring prior notification. Except as provided in 
paragraph (b) of this section, the authorized carrier must notify the 
Commission, pursuant to this section, forty-five days before 
consummation of either of the following types of transactions:
    (1) Acquisition by the authorized carrier, or by any entity that 
controls the authorized carrier, or by any entity that directly or 
indirectly owns more than twenty-five percent of the capital stock of 
the authorized carrier, of a controlling interest in a foreign carrier 
that is authorized to operate in a market that the carrier is authorized 
to serve; or
    (2) Acquisition of a direct or indirect interest greater than 
twenty-five percent, or of a controlling interest, in the capital stock 
of the authorized carrier by a foreign carrier that is authorized to 
operate in a market that the authorized carrier is authorized to serve, 
or by an entity that controls such a foreign carrier.
    (b) Exceptions. (1) Notwithstanding paragraph (a) of this section, 
the notification required by this section need not be filed before 
consummation, and may instead be filed pursuant to paragraph (c) of this 
section, if either of the following is true with respect to the named 
foreign carrier regardless of whether that foreign carrier is authorized 
to operate in a World Trade Organization (WTO) or non-WTO Member:
    (i) The Commission has previously determined in an adjudication that 
the foreign carrier lacks market power in that destination market (for 
example, in an international section 214 application or a declaratory 
ruling proceeding); or
    (ii) The foreign carrier owns no facilities in that destination 
market. For this purpose, a carrier is said to own facilities if it 
holds an ownership, indefeasible-right-of-user, or leasehold interest in 
bare capacity in international or domestic telecommunications facilities 
(excluding switches).
    (2) In the event paragraph (b)(1) of this section cannot be 
satisfied, notwithstanding paragraph (a) of this section, the 
notification required by this section need not be filed before 
consummation, and may instead be filed

[[Page 283]]

pursuant to paragraph (c) of this section, if the authorized carrier 
certifies that the named foreign carrier is authorized to operate in a 
WTO Member and provides certification to satisfy either of the 
following:
    (i) The authorized carrier demonstrates that it is entitled to 
retain non-dominant classification on its newly affiliated route 
pursuant to Sec. 63.10; or
    (ii) The authorized carrier agrees to comply with the dominant 
carrier safeguards contained in Sec. 63.10 effective upon the 
acquisition of the affiliation. See Sec. 63.10.
    (c) Notification after consummation. Any authorized carrier that 
becomes affiliated with a foreign carrier and has not previously 
notified the Commission pursuant to this section shall notify the 
Commission within thirty days after consummation of the acquisition.

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

    (d) Cross-reference: In the event a transaction requiring a foreign 
carrier notification pursuant to this section also requires a transfer 
of control of assignment application pursuant to Sec. 63.24, the 
foreign carrier notification shall reference in the notification the 
transfer of control of assignment application and the date of its 
filing.
    (e) Contents of notification. The notification shall certify the 
following information:
    (1) The name of the newly affiliated foreign carrier and the country 
or countries in which it is authorized to provide telecommunications 
services to the public;
    (2) Which, if any, of those countries is a Member of the World Trade 
Organization;
    (3) What services the authorized carrier is authorized to provide to 
each named country, and the FCC file numbers under which each such 
authorization was granted;
    (4) Which, if any, of those countries the authorized carrier serves 
solely through the resale of the international switched services of 
unaffiliated U.S. facilities-based carriers;
    (5) The name, address, citizenship, and principal business of any 
person or entity that directly or indirectly owns at least ten (10) 
percent of the equity of the authorized carrier, and the percentage of 
equity owned by each of those entities (to the nearest one percent);
    (6) A certification that the authorized carrier has not agreed to 
and will not in the future agree to accept special concessions directly 
or indirectly from any foreign carrier with respect to any U.S. 
international route where the foreign carrier possesses market power on 
the foreign end of the route; and
    (7) Interlocking directorates. The name of any interlocking 
directorates, as defined in Sec. 63.09(g), with each foreign carrier 
named in the notification. See Sec. 63.09(g).
    (8) With respect to each foreign carrier named in the notification, 
a statement as to whether the notification is subject to paragraph (a) 
or (c) of this section. In the case of a notification subject to 
paragraph (a) of this section, the authorized carrier shall include the 
projected date of closing. In the case of a notification subject to 
paragraph (c) of this section, the authorized carrier shall include the 
actual date of closing.
    (9) If an authorized carrier relies on an exception in paragraph (b) 
of this section, then a certification as to which exception the foreign 
carrier satisfies and a citation to any adjudication upon which the 
carrier is relying.

[[Page 284]]

Authorized carriers relying upon the exceptions in paragraph (b)(2) of 
this section must make the required certified demonstration in paragraph 
(b)(2)(i) of this section or the certified commitment to comply with 
dominant carrier safeguards in paragraph (b)(2)(ii) of this section in 
the notification required by paragraph (c) of this section.
    (f) In order to retain non-dominant status on each newly affiliated 
route, the authorized carrier should demonstrate that it qualifies for 
non-dominant classification pursuant to Sec. 63.10. See Sec. 63.10.
    (g) Procedure. After the Commission issues a public notice of the 
submissions made under this section, interested parties may file 
comments within fourteen days of the public notice.
    (1) If the Commission deems it necessary at any time before or after 
the deadline for submission of public comments, the Commission may 
impose dominant carrier regulation on the authorized carrier for the 
affiliated routes based on the provisions of Sec. 63.10. See Sec. 
63.10.
    (2) In the case of a prior notification filed pursuant to paragraph 
(a) of this section in which the foreign carrier is authorized to 
operate in a non-WTO Member, the authorized carrier must demonstrate 
that it continues to serve the public interest for it to operate on the 
route for which it proposes to acquire an affiliation with the non-WTO 
foreign carrier by making the required showing in Sec. Sec. 63.18(k)(2) 
or (3) to the Commission. If the authorized carrier is unable to make 
the required showing in Sec. Sec. 63.18(k)(2) or (3) or is notified 
that the affiliation may otherwise harm the public interest pursuant to 
the Commission's policies and rules, then the Commission may impose 
conditions necessary to address any public interest harms or may proceed 
to an immediate authorization revocation hearing. See Sec. Sec. 
63.18(k)(2) and (3).
    (h) All authorized carriers are responsible for the continuing 
accuracy of information provided pursuant to this section for a period 
of forty-five (45) days after filing. During this period if the 
information furnished is no longer accurate, the authorized carrier 
shall as promptly as possible, and in any event within ten (10) days, 
unless good cause is shown, file with the Commission a corrected 
notification referencing the FCC file numbers under which the original 
notification was provided, except that the carrier shall immediately 
inform the Commission, if at any time, not limited to the forty-five 
(45) days, the representations in the ``special concessions'' 
certification provided under paragraph (e)(6) of this section or Sec. 
63.18(n) are no longer true. See Sec. 63.18(n).
    (i) A carrier that files a prior notification pursuant to paragraph 
(a) of this section may request confidential treatment of its filing, 
pursuant to Sec. 0.459 of this chapter, for the first twenty (20) days 
after filing.
    (j) Subject to the availability of electronic forms, notifications 
described in this section must be filed electronically through the 
International Bureau Filing System (IBFS). A list of forms that are 
available for electronic filing can be found on the IBFS homepage. For 
information on electronic filing requirements, see part 1, Sec. Sec. 
1.1000 through 1.10018 of this chapter and the IBFS homepage at http://
www.fcc.gov/ibfs. See also Sec. Sec. 63.20 and 63.53.

[65 FR 60116, Oct. 10, 2000, as amended at 68 FR 50973, Aug. 25, 2003; 
69 FR 29901, May 26, 2004; 70 FR 38798, July 6, 2005]



Sec. 63.12  Processing of international Section 214 applications.

    (a) Except as provided by paragraph (c) of this section, a complete 
application seeking authorization under Sec. 63.18 of this part shall 
be granted by the Commission 14 days after the date of public notice 
listing the application as accepted for filing.
    (b) The applicant may commence operation on the 15th day after the 
date of public notice listing the application as accepted for filing, 
but only in accordance with the operations proposed in its application 
and the rules, regulations, and policies of the Commission. The public 
notice of the grant of the authorization shall represent the applicant's 
Section 214 certificate.
    (c) The streamlined processing procedures provided by paragraphs (a) 
and (b) of this section shall not apply where:

[[Page 285]]

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

[62 FR 64753, Dec. 9, 1997, as amended at 64 FR 19063, Apr. 19, 1999; 64 
FR 22903, Apr. 28, 1999; 64 FR 43095, Aug. 9, 1999; 69 FR 23154, Apr. 
28, 2004]



Sec. 63.13  Procedures for modifying regulatory classification of U.S. 

international carriers from dominant to non-dominant.

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

[62 FR 64754, Dec. 9, 1997]



Sec. 63.14  Prohibition on agreeing to accept special concessions.

    (a) Any carrier authorized to provide international communications 
service under this part shall be prohibited, except as provided in 
paragraph (c) of this section, from agreeing to accept special 
concessions directly or indirectly from any foreign carrier with respect 
to any U.S. international route where the foreign carrier possesses 
sufficient market power on the foreign end of the route to affect 
competition adversely in the U.S. market and from

[[Page 286]]

agreeing to accept special concessions in the future.

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

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

[62 FR 64754, Dec. 9, 1997, as amended at 64 FR 19063, Apr. 19, 1999; 64 
FR 34741, June 29, 1999; 66 FR 16881, Mar. 28, 2001; 69 FR 23154, Apr. 
28, 2004; 78 FR 11112, Feb. 15, 2013]



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

    (a) Unless otherwise prohibited by the terms of its Section 214 
certificate, a U.S. common carrier authorized under this part to provide 
international private line service, whether as a reseller or facilities-
based carrier, may interconnect its authorized private lines to the 
public switched network on behalf of an end user customer for the end 
user customer's own use.
    (b) Except as provided in paragraph (b)(4) of this section, a U.S. 
common carrier, whether a reseller or facilities-based carrier, may 
engage in ``switched hubbing'' to countries provided the carrier 
complies with the following conditions:
    (1) U.S.-outbound switched traffic shall be routed over the 
carrier's authorized U.S. international circuits extending between the 
United States and a country that is exempt from the international 
settlements policy (i.e., the ``hub'' country), and then forwarded to 
the third country only by taking at published rates and reselling the 
international message telephone service (IMTS) of a carrier in the hub 
country;
    (2) U.S.-inbound switched traffic shall be carried to a country that 
is exempt from the international settlements policy (i.e., the ``hub'' 
country) as part of the IMTS traffic flow from a third country and then 
terminated in the United States over the carrier's authorized U.S. 
international circuits extending between the United States and the hub 
country.

    Note to paragraph (b): 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.

    (3) Authorized carriers filing tariffs pursuant to Sec. Sec. 61.19 
or 61.28 of this chapter that route U.S.-billed traffic via switched 
hubbing shall tariff their service on a ``through'' basis between the 
United States and the ultimate point of origination or termination;
    (4) No U.S. common carrier may engage in switched hubbing to or from 
a third country where it has an affiliation with a foreign carrier 
unless and until it has received authority to serve that country under 
Sec. 63.18(e)(1), (e)(2), or (e)(3).

[60 FR 67339, Dec. 29, 1995, as amended at 61 FR 15728, Apr. 9, 1996; 63 
FR 64754, Dec. 9, 1997; 64 FR 19064, Apr. 19, 1999; 66 FR 16881, Mar. 
28, 2001; 67 FR 45390, July 9, 2002; 69 FR 23154, Apr. 28, 2004; 78 FR 
11112, Feb. 15, 2013]

[[Page 287]]



Sec. 63.18  Contents of applications for international common carriers.

    Except as otherwise provided in this part, any party seeking 
authority pursuant to Section 214 of the Communications Act of 1934, as 
amended, to construct a new line, or acquire or operate any line, or 
engage in transmission over or by means of such additional line for the 
provision of common carrier communications services between the United 
States, its territories or possessions, and a foreign point shall 
request such authority by formal application. The application shall 
include information demonstrating how the grant of the application will 
serve the public interest, convenience, and necessity. Such 
demonstration shall consist of the following information, as applicable:
    (a) The name, address, and telephone number of each applicant;
    (b) The Government, State, or Territory under the laws of which each 
corporate or partnership applicant is organized;
    (c) The name, title, post office address, and telephone number of 
the officer and any other contact point, such as legal counsel, to whom 
correspondence concerning the application is to be addressed;
    (d) A statement as to whether the applicant has previously received 
authority under Section 214 of the Act and, if so, a general description 
of the categories of facilities and services authorized (i.e., 
authorized to provide international switched services on a facilities 
basis);
    (e) One or more of the following statements, as pertinent:
    (1) Global facilities-based authority. If applying for authority to 
become a facilities-based international common carrier subject to Sec. 
63.22 of this part, the applicant shall:
    (i) State that it is requesting Section 214 authority to operate as 
a facilities-based carrier pursuant to Sec. 63.18(e)(1) of this part of 
the Commission's rules;
    (ii) List any countries for which the applicant does not request 
authorization under this paragraph (see Sec. 63.22(a) of this part); 
and
    (iii) Certify that it will comply with the terms and conditions 
contained in Sec. Sec. 63.21 and 63.22 of this part.
    (2) Global Resale Authority. If applying for authority to resell the 
international services of authorized common carriers subject to Sec. 
63.23, the applicant shall:
    (i) State that it is requesting Section 214 authority to operate as 
a resale carrier pursuant to Sec. 63.18(e)(2) of this section of the 
Commission's rules;
    (ii) List any countries for which the applicant does not request 
authorization under this paragraph (see Sec. 63.23(a) of this part); 
and
    (iii) Certify that it will comply with the terms and conditions 
contained in Sec. Sec. 63.21 and 63.23 of this part.
    (3) Other authorizations. If applying for authority to acquire 
facilities or to provide services not covered by paragraphs (e)(1) and 
(e)(2) of this section, the applicant shall provide a description of the 
facilities and services for which it seeks authorization. The applicant 
shall certify that it will comply with the terms and conditions 
contained in Sec. Sec. 63.21 and 63.22 and/or 63.23, as appropriate. 
Such description also shall include any additional information the 
Commission shall have specified previously in an order, public notice or 
other official action as necessary for authorization.
    (f) Applicants may apply for any or all of the authority provided 
for in paragraph (e) of this section in the same application. The 
applicant may want to file separate applications for those services not 
subject to streamlined processing under Sec. 63.12.
    (g) Where the applicant is seeking facilities-based authority under 
paragraph (e)(3) of this section, a statement whether an authorization 
of the facilities is categorically excluded as defined by Sec. 1.1306 
of this chapter. If answered affirmatively, an environmental assessment 
as described in Sec. 1.1311 of this chapter need not be filed with the 
application.
    (h) The name, address, citizenship and principal businesses of any 
person or entity that directly or indirectly owns at least ten percent 
of the equity of the applicant, and the percentage of equity owned by 
each of those entities (to the nearest one percent). The applicant shall 
also identify any interlocking directorates with a foreign carrier.


[[Page 288]]


    Note to paragraph (h): Ownership and other interests in U.S. and 
foreign carriers will be attributed to their holders and deemed 
cognizable pursuant to the following criteria: Attribution of ownership 
interests in a carrier that are held indirectly by any party through one 
or more intervening corporations will be determined by successive 
multiplication of the ownership percentages for each link in the 
vertical ownership chain and application of the relevant attribution 
benchmark to the resulting product, except that wherever the ownership 
percentage for any link in the chain that is equal to or exceeds 50 
percent or represents actual control, it shall be treated as if it were 
a 100 percent interest. For example, if A owns 30 percent of company X, 
which owns 60 percent of company Y, which owns 26 percent of 
``carrier,'' then X's interest in ``carrier'' would be 26 percent (the 
same as Y's interest because X's interest in Y exceeds 50 percent), and 
A's interest in ``carrier'' would be 7.8 percent (0.30x0.26 because A's 
interest in X is less than 50 percent). Under the 25 percent attribution 
benchmark, X's interest in ``carrier'' would be cognizable, while A's 
interest would not be cognizable.

    (i) A certification as to whether or not the applicant is, or is 
affiliated with, a foreign carrier. The certification shall state with 
specificity each foreign country in which the applicant is, or is 
affiliated with, a foreign carrier.
    (j) A certification as to whether or not the applicant seeks to 
provide international telecommunications services to any destination 
country for which any of the following is true. The certification shall 
state with specificity the foreign carriers and destination countries:
    (1) The applicant is a foreign carrier in that country; or
    (2) The applicant controls a foreign carrier in that country; or
    (3) Any entity that owns more than 25 percent of the applicant, or 
that controls the applicant, controls a foreign carrier in that country.
    (4) Two or more foreign carriers (or parties that control foreign 
carriers) own, in the aggregate, more than 25 percent of the applicant 
and are parties to, or the beneficiaries of, a contractual relation 
(e.g., a joint venture or market alliance) affecting the provision or 
marketing of international basic telecommunications services in the 
United States.
    (k) For any destination country listed by the applicant in response 
to paragraph (j) of this section, the applicant shall make one of the 
following showings:
    (1) The named foreign country (i.e., the destination foreign 
country) is a Member of the World Trade Organization; or
    (2) The applicant's affiliated foreign carrier lacks market power in 
the named foreign country; or
    (3) The named foreign country provides effective competitive 
opportunities to U.S. carriers to compete in that country's market for 
the service that the applicant seeks to provide (facilities-based, 
resold switched, or resold non-interconnected private line services). An 
effective competitive opportunities demonstration should address the 
following factors:
    (i) If the applicant seeks to provide facilities-based international 
services, the legal ability of U.S. carriers to enter the foreign market 
and provide facilities-based international services, in particular 
international message telephone service (IMTS);
    (ii) If the applicant seeks to provide resold services, the legal 
ability of U.S. carriers to enter the foreign market and provide resold 
international switched services (for switched resale applications) or 
non-interconnected private line services (for non-interconnected private 
line resale applications);
    (iii) Whether there exist reasonable and nondiscriminatory charges, 
terms and conditions for interconnection to a foreign carrier's domestic 
facilities for termination and origination of international services or 
the provision of the relevant resale service;
    (iv) Whether competitive safeguards exist in the foreign country to 
protect against anticompetitive practices, including safeguards such as:
    (A) Existence of cost-allocation rules in the foreign country to 
prevent cross-subsidization;
    (B) Timely and nondiscriminatory disclosure of technical information 
needed to use, or interconnect with, carriers' facilities; and
    (C) Protection of carrier and customer proprietary information;

[[Page 289]]

    (v) Whether there is an effective regulatory framework in the 
foreign country to develop, implement and enforce legal requirements, 
interconnection arrangements and other safeguards; and
    (vi) Any other factors the applicant deems relevant to its 
demonstration.
    (l) [Reserved]
    (m) With respect to regulatory classification under Sec. 63.10 of 
this part, any applicant that is or is affiliated with a foreign carrier 
in a country listed in response to paragraph (i) of this section and 
that desires to be regulated as non-dominant for the provision of 
particular international telecommunications services to that country 
should provide information in its application to demonstrate that it 
qualifies for non-dominant classification pursuant to Sec. 63.10 of 
this part.
    (n) A certification that the applicant has not agreed to accept 
special concessions directly or indirectly from any foreign carrier with 
respect to any U.S. international route where the foreign carrier 
possesses market power on the foreign end of the route and will not 
enter into such agreements in the future.
    (o) A certification pursuant to Sec. Sec. 1.2001 through 1.2003 of 
this chapter that no party to the application is subject to a denial of 
Federal benefits pursuant to Section 5301 of the Anti-Drug Abuse Act of 
1988. See 21 U.S.C. 853a.
    (p) If the applicant desires streamlined processing pursuant to 
Sec. 63.12, a statement of how the application qualifies for 
streamlined processing.
    (q) Subject to the availability of electronic forms, all 
applications described in this section must be filed electronically 
through the International Bureau Filing System (IBFS). A list of forms 
that are available for electronic filing can be found on the IBFS 
homepage. For information on electronic filing requirements, see part 1, 
Sec. Sec. 1.1000 through 1.10018 of this chapter and the IBFS homepage 
at http://www.fcc.gov/ibfs. See also Sec. Sec. 63.20 and 63.53.

[61 FR 15729, Apr. 9, 1996, as amended at 62 FR 32965, June 17, 1997; 62 
FR 45762, Aug. 29, 1997; 62 FR 64755, Dec. 9, 1997; 63 FR 24121, May 1, 
1998; 64 FR 19064, Apr. 19, 1999; 65 FR 60117, Oct. 10, 2000; 67 FR 
45390, July 9, 2002; 69 FR 29902, May 26, 2004; 70 FR 38798, July 6, 
2005; 72 FR 54366, Sept. 25, 2007; 78 FR 15623, Mar. 12, 2013]



Sec. 63.19  Special procedures for discontinuances of international services.

    (a) With the exception of those international carriers described in 
paragraphs (b) and (c) of this section, any international carrier that 
seeks to discontinue, reduce or impair service, including the retiring 
of international facilities, dismantling or removing of international 
trunk lines, shall be subject to the following procedures in lieu of 
those specified in Sec. Sec. 63.61 through 63.601:
    (1) The carrier shall notify all affected customers of the planned 
discontinuance, reduction or impairment at least 30 days prior to its 
planned action. Notice shall be in writing to each affected customer 
unless the Commission authorizes in advance, for good cause shown, 
another form of notice.
    (2) The carrier shall file with this Commission a copy of the 
notification on the date on which notice has been given to all affected 
customers. The filing may be made by letter (sending an original and 
five copies to the Office of the Secretary, and a copy to the Chief, 
International Bureau) and shall identify the geographic areas of the 
planned discontinuance, reduction or impairment and the authorization(s) 
pursuant to which the carrier provides service.
    (b) The following procedures shall apply to any international 
carrier that the Commission has classified as dominant in the provision 
of a particular international service because the carrier possesses 
market power in the provision of that service on the U.S. end of the 
route. Any such carrier that seeks to retire international facilities, 
dismantle or remove international trunk lines, but does not discontinue, 
reduce or impair the dominant services being provided through these 
facilities, shall only be subject to the notification requirements of 
paragraph (a) of this section. If such carrier discontinues, reduces or 
impairs the dominant service, or retires facilities that impair or 
reduce the service, the carrier shall file an application pursuant to 
Sec. Sec. 63.62 and 63.500.
    (c) Commercial Mobile Radio Service (CMRS) carriers, as defined in 
Sec. 20.9 of

[[Page 290]]

this chapter, are not subject to the provisions of this section.
    (d) Subject to the availability of electronic forms, all filings 
described in this section must be filed electronically through the 
International Bureau Filing System (IBFS). A list of forms that are 
available for electronic filing can be found on the IBFS homepage. For 
information on electronic filing requirements, see part 1, Sec. Sec. 
1.1000 through 1.10018 of this chapter and the IBFS homepage at http://
www.fcc.gov/ibfs. See also Sec. Sec. 63.20 and 63.53.

[67 FR 45391, July 9, 2002, as amended at 70 FR 38798, July 6, 2005; 72 
FR 54366, Sept. 25, 2007]



Sec. 63.20  Electronic filing, copies required; fees; and filing periods for 

international service providers.

    (a) Subject to the availability of electronic forms, all filings 
described in this section must be filed electronically through the 
International Bureau Filing System (IBFS). A list of forms that are 
available for electronic filing can be found on the IBFS homepage. For 
information on electronic filing requirements, see part 1, Sec. Sec. 
1.1000 through 1.10018 of this chapter and the IBFS homepage at http://
www.fcc.gov/ibfs. Each application shall be accompanied by the fee 
prescribed in subpart G of part 1 of this chapter. For applications 
filed electronically it is not necessary to send the original or any 
copies with the fee payment. For applications and other filings that are 
not submitted electronically, an original and five (5) copies of the 
submission must be filed with the Commission. Upon request by the 
Commission, additional copies shall be furnished.
    (b) No application accepted for filing and subject to the provisions 
of Sec. Sec. 63.18, 63.62 or 63.505 of this part shall be granted by 
the Commission earlier than 28 days following issuance of public notice 
by the Commission of the acceptance for filing of such application or 
any major amendment unless said public notice specifies another time 
period, or the application qualifies for streamlined processing pursuant 
to Sec. 63.12 of this part.
    (c) No application accepted for filing and subject to the 
streamlined processing provisions of Sec. 63.12 of this part shall be 
granted by the Commission earlier than 14 days following issuance of 
public notice by the Commission of the acceptance for filing of such 
application or any major amendment unless said public notice specifies 
another time period.
    (d) Any interested party may file a petition to deny an application 
within the time period specified in the public notice listing an 
application as accepted for filing and ineligible for streamlined 
processing. The petitioner shall serve a copy of such petition on the 
applicant no later than the date of filing thereof with the Commission. 
The petition shall contain specific allegations of fact sufficient to 
show that the petitioner is a party in interest and that a grant of the 
application would be prima facie inconsistent with the public interest, 
convenience and necessity. Such allegations of fact shall, except for 
those of which official notice may be taken, be supported by affidavit 
of a person or persons with personal knowledge thereof. The applicant 
may file an opposition to any petition to deny within 14 days after the 
original pleading is filed. The petitioner may file a reply to such 
opposition within seven days after the time for filing oppositions has 
expired. Allegations of facts or denials thereof shall similarly be 
supported by affidavit. These responsive pleadings shall be served on 
the applicant or petitioner, as appropriate, and other parties to the 
proceeding.

[61 FR 15732, Apr. 9, 1996, as amended at 64 FR 19065, Apr. 19, 1999; 67 
FR 45391, July 9, 2002; 69 FR 29902, May 26, 2004; 70 FR 38798, July 6, 
2005]



Sec. 63.21  Conditions applicable to all international Section 214 

authorizations.

    International carriers authorized under Section 214 of the 
Communications Act of 1934, as amended, must follow the following 
requirements and prohibitions:
    (a) Each carrier is responsible for the continuing accuracy of the 
certifications made in its application. Whenever the substance of any 
such certification is no longer accurate, the carrier shall as promptly 
as possible and, in any event, within thirty (30) days, file with the 
Commission a corrected

[[Page 291]]

certification referencing the FCC file number under which the original 
certification was provided. The information may be used by the 
Commission to determine whether a change in regulatory status may be 
warranted under Sec. 63.10. See also Sec. 63.11.
    (b) Carriers must file copies of operating agreements entered into 
with their foreign correspondents as specified in Sec. 43.51 of this 
chapter and shall otherwise comply with the filing requirements 
contained in that section.
    (c) Carriers regulated as dominant for the provision of a particular 
international communications service on a particular route for any 
reason other than a foreign carrier affiliation under Sec. 63.10 shall 
file tariffs pursuant to Section 203 of the Communications Act, 47 
U.S.C. 203, and part 61 of this chapter. Except as specified in Sec. 
20.15(d) of this chapter with respect to commercial mobile radio service 
providers, carriers regulated as non-dominant, as defined in Sec. 61.3 
of this chapter, and providing detariffed international services 
pursuant to Sec. 61.19 of this chapter must comply with all applicable 
public disclosure and maintenance of information requirements in 
Sec. Sec. 42.10 and 42.11 of this chapter.
    (d) Carriers must file annual international telecommunications 
traffic and revenue as required by Sec. 43.62 of this chapter.
    (e) Authorized carriers may not access or make use of specific U.S. 
customer proprietary network information that is derived from a foreign 
network unless the carrier obtains approval from that U.S. customer. In 
seeking to obtain approval, the carrier must notify the U.S. customer 
that the customer may require the carrier to disclose the information to 
unaffiliated third parties upon written request by the customer.
    (f) Authorized carriers may not receive from a foreign carrier any 
proprietary or confidential information pertaining to a competing U.S. 
carrier, obtained by the foreign carrier in the course of its normal 
business dealings, unless the competing U.S. carrier provides its 
permission in writing.
    (g) The Commission reserves the right to review a carrier's 
authorization, and, if warranted, impose additional requirements on U.S. 
international carriers in circumstances where it appears that harm to 
competition is occurring on one or more U.S. international routes.
    (h) Subject to the requirement of Sec. 63.10 that a carrier 
regulated as dominant along a route must provide service as an entity 
that is separate from its foreign carrier affiliate, and subject to any 
other structural-separation requirement in Commission regulations, an 
authorized carrier may provide service through any wholly owned direct 
or indirect subsidiaries. The carrier must, within thirty (30) days 
after the subsidiary begins providing service, file with the Commission 
a notification referencing the authorized carrier's name and the FCC 
file numbers under which the carrier's authorizations were granted and 
identifying the subsidiary's name and place of legal organization. This 
provision shall not be construed to authorize the provision of service 
by any entity barred by statute or regulation from itself holding an 
authorization or providing service.
    (i) An authorized carrier, or a subsidiary operating pursuant to 
paragraph (h) of this section, that changes its name (including the name 
under which it is doing business) must notify the Commission within 
thirty (30) days of the name change. Such notification shall reference 
the FCC file numbers under which the carrier's authorizations were 
granted.
    (j) Subject to the availability of electronic forms, all 
notifications and other filings described in this section must be filed 
electronically through the International Bureau Filing System (IBFS). A 
list of forms that are available for electronic filing can be found on 
the IBFS homepage. For information on electronic filing requirements, 
see part 1, Sec. Sec. 1.1000 through 1.10018 of this chapter and the 
IBFS homepage at http://www.fcc.gov/ibfs. See also Sec. Sec. 63.20 and 
63.53.

[61 FR 15732, Apr. 9, 1996, as amended at 62 FR 45762, Aug. 29, 1997; 62 
FR 64758, Dec. 9, 1997; 64 FR 19065, Apr. 19, 1999; 66 FR 16881, Mar. 
28, 2001; 67 FR 45391, July 9, 2002; 67 FR 57344, Sept. 10, 2002; 70 FR 
38798, July 6, 2005; 78 FR 15623, Mar. 12, 2013]

[[Page 292]]


    Effective Date Note: At 78 FR 15623, Mar. 12, 2013, Sec. 63.21 was 
amended by revising paragraph (d). 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. 63.22  Facilities-based international common carriers.

    The following conditions apply to authorized facilities-based 
international carriers:
    (a) A carrier authorized under Sec. 63.18(e)(1) may provide 
international facilities-based services to international points for 
which it qualifies for non-dominant regulation as set forth in Sec. 
63.10, except in the following circumstance: If the carrier is, or is 
affiliated with, a foreign carrier in a destination market and the 
Commission has not determined that the foreign carrier lacks market 
power in the destination market (see Sec. 63.10(a)), the carrier shall 
not provide service on that route unless it has received specific 
authority to do so under Sec. 63.18(e)(3).
    (b) The carrier may provide service using half-circuits on any U.S. 
common carrier and non-common carrier facilities that do not appear on 
an exclusion list published by the Commission. Carriers may also use any 
necessary non-U.S.-licensed facilities, including any submarine cable 
systems, that do not appear on the exclusion list. Carriers may not use 
U.S. earth stations to access non-U.S.-licensed satellite systems unless 
the Commission has specifically approved the use of those satellites and 
so indicates on the exclusion list. The exclusion list is available from 
the International Bureau's World Wide Web site at http://www.fcc.gov/ib.
    (c) Specific authority under Sec. 63.18(e)(3) is required for the 
carrier to provide service using any facilities listed on the exclusion 
list, to provide service between the United States and any country on 
the exclusion list, or to construct, acquire, or operate lines in any 
new major common carrier facility project.
    (d) The carrier may provide international basic switched, private 
line, data, television and business services.
    (e) The carrier shall file annual international circuit capacity 
reports as required by Sec. 43.62 of this chapter.
    (f) The terms and conditions of any operating or other agreement 
relating to the exchange of services, interchange or routing of traffic 
and matters concerning rates, accounting rates, division of tolls, the 
allocation of return traffic, or the basis of settlement of traffic 
balances, entered into by U.S. common carriers authorized pursuant to 
this part to provide facilities-based switched voice service on the 
U.S.-Cuba route in correspondence with a Cuban carrier that does not 
qualify for the presumption that it lacks market power in Cuba, shall be 
identical to the equivalent terms and conditions in the operating 
agreement of another carrier providing the same or similar service 
between the United States and Cuba. Carriers may seek waiver of this 
requirement. See International Settlements Policy Reform, Report and 
Order, IB Docket Nos. 11-80, 05-254, 09-10, RM 11322, FCC 12-145 (rel. 
November 29, 2012).
    (g) A carrier or other party may request Commission intervention on 
any U.S. international route for which competitive problems are alleged 
by filing with the International Bureau a petition, pursuant to this 
section, demonstrating anticompetitive behavior by foreign carriers that 
is harmful to U.S. customers. The Commission may also act on its own 
motion. Carriers and other parties filing complaints must support their 
petitions with evidence, including an affidavit and relevant commercial 
agreements. The International Bureau will review complaints on a case-
by-case basis and take appropriate action on delegated authority 
pursuant to Sec. 0.261 of this chapter. Interested parties will have 10 
days from the date of issuance of a public notice of the petition to 
file comments or oppositions to such petitions and subsequently 7 days 
for replies. In the event significant, immediate harm to the public 
interest is likely to occur that cannot be addressed through post facto 
remedies, the International Bureau may impose temporary requirements on 
carriers authorized pursuant to Sec. 63.18 of this chapter without 
prejudice to its findings on such petitions.
    (h) The authority granted under this part is subject to all 
Commission rules and regulations and any conditions or

[[Page 293]]

limitations stated in the Commission's public notice or order that 
serves as the carrier's Section 214 certificate. See Sec. Sec. 63.12, 
63.21 of this part.

    Note 1 to Sec. 63.22: For purposes of this section, foreign carrier 
is defined in Sec. 63.09 of this chapter.
    Note 2 to Sec. 63.22: For purposes of this section, a foreign 
carrier shall be considered to possess market power if it appears on the 
Commission's list of foreign carriers that do not qualify for the 
presumption that they lack market power in particular foreign points. 
This list is available on 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.

[64 FR 19065, Apr. 19, 1999, as amended at 64 FR 34741, June 29, 1999; 
67 FR 45391, July 9, 2002; 69 FR 23154, Apr. 28, 2004; 78 FR 11112, Feb. 
15, 2013; 78 FR 15624, Mar. 12, 2013]

    Effective Date Note: At 78 FR 15624, Mar. 12, 2013, Sec. 63.22 was 
amended by revising paragraph (e). 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. 63.23  Resale-based international common carriers.

    The following conditions apply to carriers authorized to resell the 
international services of other authorized carriers:
    (a) A carrier authorized under Sec. 63.18(e)(2) may provide resold 
international services to international points for which the applicant 
qualifies for non-dominant regulation as set forth in Sec. 63.10, 
except that the carrier may not provide either of the following services 
unless it has received specific authority to do so under Sec. 
63.18(e)(3):
    (1) Resold switched services to a non-WTO Member country where the 
applicant is, or is affiliated with, a foreign carrier; and
    (2) Switched or private line services over resold private lines to a 
destination market where the applicant is, or is affiliated with, a 
foreign carrier and the Commission has not determined that the foreign 
carrier lacks market power in the destination market (see Sec. 
63.10(a)).
    (b) The carrier may not resell the international services of an 
affiliated carrier regulated as dominant on the route to be served 
unless it has received specific authority to do so under Sec. 
63.18(e)(3).
    (c) Subject to the limitations specified in paragraph (b) of this 
section and in Sec. 63.17(b), the carrier may provide service by 
reselling the international services of any other authorized U.S. common 
carrier or foreign carrier, or by entering into a roaming or other 
arrangement with a foreign carrier, for the provision of international 
basic switched, private line, data, television and business services to 
all international points.

    Note to paragraph (c): For purposes of this paragraph, a roaming 
arrangement with a foreign carrier is defined as an arrangement under 
which the subscribers of a U.S. commercial mobile radio service provider 
use the facilities of a foreign carrier with which the subscriber has no 
direct pre-existing service or financial relationship to place a call 
from the foreign country to the United States.

    (d) The carrier may provide switched basic services over its 
authorized resold private lines in either of the following two 
circumstances:
    (1) The country at the foreign end of the private line appears on 
the Commission's list of international routes exempted from the 
international settlements policy set forth in Sec. 64.1002 of this 
chapter; or
    (2) The carrier is exchanging switched traffic with a foreign 
carrier

[[Page 294]]

that lacks market power in the country at the foreign end of the private 
line. A foreign carrier lacks market power for purposes of this section 
if it does not appear on the Commission's list of foreign carriers that 
do not qualify for the presumption that they lack market power in 
particular foreign points.

    Note to paragraph (d): The Commission's list of international routes 
exempted from the international settlements policy, and the Commission's 
list of foreign carriers that do not qualify for the presumption that 
they lack market power in particular foreign points are available on the 
International Bureau's World Wide Web site at http://www.fcc.gov/ib.

    (e) The authority granted under this part is subject to all 
Commission rules and regulations and any conditions or limitations 
stated in the Commission's public notice or order that serves as the 
carrier's Section 214 certificate. See Sec. Sec. 63.12, 63.21 of this 
part.

[64 FR 19066, Apr. 19, 1999, as amended at 64 FR 34741, June 29, 1999; 
67 FR 45391, July 9, 2002; 69 FR 23154, Apr. 28, 2004; 72 FR 54366, 
Sept. 25, 2007; 76 FR 42573, July 19, 2011]



Sec. 63.24  Assignments and transfers of control.

    (a) General. Except as otherwise provided in this section, an 
international section 214 authorization may be assigned, or control of 
such authorization may be transferred by the transfer of control of any 
entity holding such authorization, to another party, whether voluntarily 
or involuntarily, directly or indirectly, only upon application to and 
prior approval by the Commission.
    (b) Assignments. For purposes of this section, an assignment of an 
authorization is a transaction in which the authorization is assigned 
from one entity to another entity. Following an assignment, the 
authorization is held by an entity other than the one to which it was 
originally granted.

    Note to paragraph (b): The sale of a customer base, or a portion of 
a customer base, by a carrier to another carrier, is a sale of assets 
and shall be treated as an assignment, which requires prior Commission 
approval under this section.

    (c) Transfers of control. For purposes of this section, a transfer 
of control is a transaction in which the authorization remains held by 
the same entity, but there is a change in the entity or entities that 
control the authorization holder. A change from less than 50 percent 
ownership to 50 percent or more ownership shall always be considered a 
transfer of control. A change from 50 percent or more ownership to less 
than 50 percent ownership shall always be considered a transfer of 
control. In all other situations, whether the interest being transferred 
is controlling must be determined on a case-by-case basis with reference 
to the factors listed in Note to paragraph (c).
    (d) Pro forma assignments and transfers of control. Transfers of 
control or assignments that do not result in a change in the actual 
controlling party are considered non-substantial or pro forma. Whether 
there has been a change in the actual controlling party must be 
determined on a case-by-case basis with reference to the factors listed 
in Note 1 to this paragraph (d). The types of transactions listed in 
Note 2 to this paragraph (d) shall be considered presumptively pro forma 
and prior approval from the Commission need not be sought.

    Note 1 to paragraph (d): Because the issue of control inherently 
involves issues of fact, it must be determined on a case-by-case basis 
and may vary with the circumstances presented by each case. The factors 
relevant to a determination of control in addition to equity ownership 
include, but are not limited to the following: power to constitute or 
appoint more than fifty percent of the board of directors or partnership 
management committee; authority to appoint, promote, demote and fire 
senior executives that control the day-to-day activities of the 
licensee; ability to play an integral role in major management decisions 
of the licensee; authority to pay financial obligations, including 
expenses arising out of operations; ability to receive monies and 
profits from the facility's operations; and unfettered use of all 
facilities and equipment.
    Note 2 to paragraph (d): If a transaction is one of the types listed 
further, the transaction is presumptively pro forma and prior approval 
need not be sought. In all other cases, the relevant determination shall 
be made on a case-by-case basis. Assignment from an individual or 
individuals (including partnerships) to a corporation owned and 
controlled by such individuals or partnerships without any substantial 
change in their relative interests; Assignment from a corporation to its 
individual stockholders

[[Page 295]]

without effecting any substantial change in the disposition of their 
interests; Assignment or transfer by which certain stockholders retire 
and the interest transferred is not a controlling one; Corporate 
reorganization that involves no substantial change in the beneficial 
ownership of the corporation (including re-incorporation in a different 
jurisdiction or change in form of the business entity); Assignment or 
transfer from a corporation to a wholly owned direct or indirect 
subsidiary thereof or vice versa, or where there is an assignment from a 
corporation to a corporation owned or controlled by the assignor 
stockholders without substantial change in their interests; or 
Assignment of less than a controlling interest in a partnership.

    (e) Applications for substantial transactions. (1) In the case of an 
assignment or transfer of control shall of an international section 214 
authorization that is not pro forma, the proposed assignee or transferee 
must apply to the Commission for authority prior to consummation of the 
proposed assignment or transfer of control.
    (2) The application shall include the information requested in 
paragraphs (a) through (d) of Sec. 63.18 for both the transferor/
assignor and the transferee/assignee. The information requested in 
paragraphs (h) through (p) of Sec. 63.18 is required only for the 
transferee/assignee. At the beginning of the application, the applicant 
shall include a narrative of the means by which the proposed transfer or 
assignment will take place.
    (3) The Commission reserves the right to request additional 
information as to the particulars of the transaction to aid it in making 
its public interest determination.
    (4) An assignee or transferee must notify the Commission no later 
than thirty (30) days after either consummation of the proposed 
assignment or transfer of control, or a decision not to consummate the 
proposed assignment or transfer of control. The notification shall 
identify the file numbers under which the initial authorization and the 
authorization of the assignment or transfer of control were granted.
    (f) Notifications for non-substantial or pro forma transactions. (1) 
In the case of a pro forma assignment or transfer of control, the 
section 214 authorization holder is not required to seek prior 
Commission approval.
    (2) A pro forma assignee or a carrier that is subject to a pro forma 
transfer of control must file a notification with the Commission no 
later than thirty (30) days after the assignment or transfer is 
completed. The notification must contain the following:
    (i) The information requested in paragraphs (a) through (d) and (h) 
of Sec. 63.18 for the transferee/assignee;
    (ii) A certification that the transfer of control or assignment was 
pro forma and that, together with all previous pro forma transactions, 
does not result in a change in the actual controlling party.
    (3) A single notification may be filed for an assignment or transfer 
of control of more than one authorization if each authorization is 
identified by the file number under which it was granted.
    (4) Upon release of a public notice granting a pro forma assignment 
or transfer of control, petitions for reconsideration under Sec. 1.106 
of this chapter or applications for review under Sec. 1.115 of this 
chapter of the Commission's rules may be filed within 30 days. 
Petitioner should address why the assignment or transfer of control in 
question should have been filed under paragraph (e) of this section 
rather than under this paragraph (f).
    (g) Involuntary assignments or transfers of control. In the case of 
an involuntary assignment or transfer of control to: a bankruptcy 
trustee appointed under involuntary bankruptcy; an independent receiver 
appointed by a court of competent jurisdiction in a foreclosure action; 
or, in the case of death or legal disability, to a person or entity 
legally qualified to succeed the deceased or disabled person under the 
laws of the place having jurisdiction over the estate involved; the 
applicant must make the appropriate filing no later than 30 days after 
the event causing the involuntary assignment or transfer of control.
    (h) Subject to the availability of electronic forms, all 
applications and notifications described in this section must be filed 
electronically through the International Bureau Filing System (IBFS). A 
list of forms that are available for electronic filing can be

[[Page 296]]

found on the IBFS homepage. For information on electronic filing 
requirements, see part 1, Sec. Sec. 1.1000 through 1.10018 of this 
chapter and the IBFS homepage at http://www.fcc.gov/ibfs. See also 
Sec. Sec. 63.20 and 63.53.

[67 FR 45391, July 9, 2002, as amended at 70 FR 38799, July 6, 2005; 72 
FR 54366, Sept. 25, 2007]



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

international carriers.

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

[[Page 297]]

making reference to this paragraph and describing each occasion during 
the quarter when it has operated such facilities, giving dates, points 
between which such facilities were located, hours or minutes used, 
nature of traffic handled, and reasons why its own facilities could not 
be used.
    (e) Subject to the availability of electronic forms, all 
applications and notifications described in this section must be filed 
electronically through the International Bureau Filing System (IBFS). A 
list of forms that are available for electronic filing can be found on 
the IBFS homepage. For information on electronic filing requirements, 
see part 1, Sec. Sec. 1.1000 through 1.10018 of this chapter and the 
IBFS homepage at http://www.fcc.gov/ibfs. See also Sec. Sec. 63.20 and 
63.53.

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

[28 FR 13229, Dec. 5, 1963, as amended at 41 FR 20662, May 20, 1976; 58 
FR 44906, Aug. 25, 1993. Redesignated and amended at 64 FR 39939, July 
23, 1999; 69 FR 29902, May 26, 2004; 70 FR 38799, July 6, 2005]

    General Provisions Relating to All Applications Under Section 214



Sec. 63.50  Amendment of applications.

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

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

[41 FR 20662, May 20, 1976]



Sec. 63.51  Additional information.

    (a) You must provide additional information if the Commission 
requests you to do so after it initially reviews your application or 
request.
    (b) If you do not respond to the request or other official 
correspondence, the Commission may dismiss your application without 
prejudice and you may file again with a completed application.
    (c) Any additional information which the Commission may require must 
be submitted in the same manner as was the original filing. For 
information on filing requirements, see part 1, Sec. Sec. 1.1000 
through 1.10018 of this chapter and the IBFS homepage at http://
www.fcc.gov/ibfs, and Sec. 63.20.

[69 FR 29902, May 26, 2004, as amended at 70 FR 38799, July 6, 2005]



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

authorizations.

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

[[Page 298]]

persons with personal knowledge thereof. The applicant may file an 
opposition to any petition to deny, and the petitioners may file a reply 
to such opposition (see Sec. 1.45 of this chapter), and allegations of 
facts or denials thereof shall similarly be supported by affidavit. 
These responsive pleadings shall be served on the applicant or 
petitioners, as appropriate, and other parties to the proceeding.

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

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



Sec. 63.53  Form.

    (a)(1) Applications for international service under section 214 of 
the Communications Act must be filed electronically with the Commission. 
For applications filed electronically it is not necessary to send the 
original or any copies with the fee payment. Subject to the availability 
of electronic forms, all applications and other filings described in 
this section must be filed electronically through the International 
Bureau Filing System (IBFS). A list of forms that are available for 
electronic filing can be found on the IBFS homepage. For information on 
electronic filing requirements, see part 1, Sec. Sec. 1.1000 through 
1.10018 of this chapter and the IBFS homepage at http://www.fcc.gov/
ibfs. See also Sec. Sec. 63.20.
    (2) Applications for international service under section 214 of the 
Communications Act that are not filed through IBFS shall be submitted on 
paper not more than 21.6 cm (8.5 in) wide and not more than 35.6 cm (14 
in) long with a left-hand margin of 4 cm (1.5 in). This requirement 
shall not apply to original documents, or admissible copies thereof, 
offered as exhibits or to specially prepared exhibits. The impression 
shall be on one side of the paper only and shall be double-spaced, 
except that long quotations shall be single-spaced and indented. All 
papers, except charts and maps, shall be typewritten or prepared by 
mechanical processing methods, other than letter press, or printed. The 
foregoing shall not apply to official publications. All copies must be 
clearly legible.
    (b) Applications for domestic authorizations under section 214 of 
the Communications Act shall be submitted on paper not more than 21.6 cm 
(8.5 in) wide and not more than 35.6 cm (14 in) long with a left-hand 
margin of 4 cm (1.5 in). This requirement shall not apply to original 
documents, or admissible copies thereof, offered as exhibits or to 
specially prepared exhibits. The impression shall be on one side of the 
paper only and shall be double-spaced, except that long quotations shall 
be single-spaced and indented. All papers, except charts and maps, shall 
be typewritten or prepared by mechanical processing methods, other than 
letter press, or printed. The foregoing shall not apply to official 
publications. All copies must be clearly legible.
    (c) Applications submitted under Section 214 of the Communications 
Act for international services and any related pleadings that are in a 
foreign language shall be accompanied by a certified translation in 
English.

[61 FR 15733, Apr. 9, 1996, as amended at 67 FR 45392, July 9, 2002; 69 
FR 29902, May 26, 2004; 70 FR 38799, July 6, 2005]

            Discontinuance, Reduction, Outage and Impairment



Sec. 63.60  Definitions.

    For the purposes of this part, the following definitions shall 
apply:
    (a) For the purposes of Sec. Sec. 63.60 through 63.90, the term 
``carrier,'' when used to refer either to all telecommunications 
carriers or more specifically to non-dominant telecommunications 
carriers, shall include interconnected VoIP providers.
    (b) Discontinuance, reduction, or impairment of service includes, 
but is not limited to the following:
    (1) The closure by a carrier of a telephone exchange rendering 
interstate or foreign telephone toll service, a public toll station 
serving a community or part of a community, or a public coast station as 
defined in Sec. 80.5 of this chapter;
    (2) The reduction in hours of service by a carrier at a telephone 
exchange rendering interstate or foreign telephone toll service, at any 
public toll station (except at a toll station at which the availability 
of service to the

[[Page 299]]

public during any specific hours is subject to the control of the agent 
or other persons controlling the premises on which such office or toll 
station is located and is not subject to the control of such carrier), 
or at a public coast station; the term reduction in hours of service 
does not include a shift in hours which does not result in any reduction 
in the number of hours of service.
    (3) The conversion of an interconnected VoIP service to a service 
that permits users to receive calls that originate on the public 
switched telephone network but not terminate calls to the public 
switched telephone network, or the converse.
    (4) The dismantling or removal from service of any trunk line by a 
carrier which has the effect of impairing the adequacy or quality of 
service rendered to any community or part of a community;
    (5) The severance by a carrier of physical connection with another 
carrier (including connecting carriers as defined in section 3(u) of the 
Communications Act of 1934, as amended) or the termination or suspension 
of the interchange of traffic with such other carrier;
    (c) Emergency discontinuance, reduction, or impairment of service 
means any discontinuance, reduction, or impairment of the service of a 
carrier occasioned by conditions beyond the control of such carrier 
where the original service is not restored or comparable service is not 
established within a reasonable time. For the purpose of this part, a 
reasonable time shall be deemed to be a period not in excess of the 
following: 10 days in the case of discontinuance, reduction, or 
impairment of service at telegraph offices operated directly by the 
carrier; 15 days in the case of jointly-operated or agency telegraph 
offices; 10 days in the case of public coast stations; and 60 days in 
all other cases;
    (d) The term ``interconnected VoIP provider'' is an entity that 
provides interconnected VoIP service as that term is defined in Sec. 
9.3 of this chapter.
    (e) Public toll station means a public telephone station, located in 
a community, through which a carrier provides service to the public, and 
which is connected directly to a toll line operated by such carrier.
    (f) For the purposes of Sec. Sec. 63.60 through 63.90, the term 
``service,'' when used to refer to a real-time, two-way voice 
communications service, shall include interconnected VoIP service as 
that term is defined in Sec. 9.3 of this chapter but shall not include 
any interconnected VoIP service that is a ``mobile service'' as defined 
in Sec. 20.3 of this chapter.
    (g) You. In this section, ``You'' refers to applicants and 
licensees.

[28 FR 13229, Dec. 5, 1963, as amended at 45 FR 6585, Jan. 29, 1980; 51 
FR 31305, Sept. 2, 1986; 69 FR 29902, May 26, 2004; 74 FR 39563, Aug. 7, 
2009]



Sec. 63.61  Applicability.

    Any carrier subject to the provisions of section 214 of the 
Communications Act of 1934, as amended, proposing to discontinue, reduce 
or impair interstate or foreign telephone or telegraph service to a 
community, or a part of a community, shall request authority therefor by 
formal application or informal request as specified in the pertinent 
sections of this part:
    (a) Provided, however, that where service is expanded on an 
experimental basis for a temporary period of not more than 6 months, no 
application shall be required to reduce service to its status prior to 
such expansion but a written notice shall be filed with the Commission 
within 10 days of the reduction showing:
    (1) The date on which, places at which, and extent to which service 
was expanded; and,
    (2) The date on which, places at which, and extent to which such 
expansion of service was discontinued.
    (b) And provided further that a licensee of a radio station who has 
filed an application for authority to discontinue service provided by 
such station shall during the period that such application is pending 
before the Commission, continue to file appropriate applications as may 
be necessary for extension or renewal of station license in order to 
provide legal authorization for such station to continue in operation 
pending final action on the application for discontinuance of service.

[[Page 300]]

Procedures for discontinuance, reduction or impairment of service by 
dominant and non-dominant, domestic carriers are in Sec. 63.71. 
Procedures for discontinuance, reduction or impairment of international 
services are in Sec. 63.19.

[71 FR 65751, Nov. 9, 2006]



Sec. 63.62  Type of discontinuance, reduction, or impairment of telephone or 

telegraph service requiring formal application.

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

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



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

    (a) Application for authority for emergency discontinuance, 
reduction, or impairment of service shall be made by filing an informal 
request in quintuplicate as soon as practicable but not later than 15 
days in the case of public coast stations; or 65 days in all other 
cases, after the occurrence of the conditions which have occasioned the 
discontinuance, reduction, or impairment. The request shall make 
reference to this section and show the following:
    (1) The effective date of such discontinuance, reduction, or 
impairment, and the identification of the service area affected;
    (2) The nature and estimated duration of the conditions causing the 
discontinuance, reduction, or impairment;
    (3) The facts showing that such conditions could not reasonably have 
been foreseen by the carrier in sufficient time to prevent such 
discontinuance, reduction, or impairment;
    (4) A description of the service involved;
    (5) The nature of service which will be available or substituted;
    (6) The effect upon rates to any person in the community;
    (7) The efforts made and to be made by applicant to restore the 
original service or establish comparable service as expeditiously as 
possible.
    (b) Authority for the emergency discontinuance, reduction, or 
impairment of service for a period of 60 days shall be deemed to have 
been granted by the Commission effective as of the date of the filing of 
the request unless, on or before the 15th day after the date of filing, 
the Commission shall notify the carrier to the contrary. Renewal of such 
authority may be requested by letter or telegram, filed with the 
Commission not later than 10 days prior to the expiration of such 60-day 
period, making reference to this section and showing that such 
conditions may reasonably be expected to continue for a

[[Page 301]]

further period and what efforts the applicant has made to restore the 
original or establish comparable service. If the same or comparable 
service is reestablished before the termination of the emergency 
authorization, the carrier shall notify the Commission promptly. 
However, the Commission may, upon specific request of the carrier and 
upon a proper showing, contained in such informal request, authorize 
such discontinuance, reduction, or impairment of service for an 
indefinite period or permanently.

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



Sec. 63.65  Closure of public toll station where another toll station of 

applicant in the community will continue service.

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



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

at military establishments.

    Where a carrier desires to close or reduce hours of service at a 
telephone exchange located at a military establishment because of the 
deactivation of such establishment, it may, in lieu of filing formal 
application, file in quintuplicate an informal request. Such request 
shall make reference to this section and shall set forth the class of 
office, address, date of proposed closure or reduction, description of 
service to remain or be substituted, statement as to any difference in 
charges to the public, and the reasons for the proposed closure or 
reduction. Authority for such closure or reduction shall be deemed to 
have been granted by the Commission, effective as of the 15th day 
following the date of filing of such request, unless, on or before the 
15th day, the Commission shall notify the carrier to the contrary.

[45 FR 6585, Jan. 29, 1980]



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

by domestic carriers.

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

[[Page 302]]

of service (or reduction or impairment) unless it is shown that 
customers would be unable to receive service or a reasonable substitute 
from another carrier or that the public convenience and necessity is 
otherwise adversely affected. If you wish to object, you should file 
your comments as soon as possible, but no later than 15 days after the 
Commission releases public notice of the proposed discontinuance. 
Address them to the Federal Communications Commission, Wireline 
Competition Bureau, Competition Policy Division, Washington, DC 20554, 
and include in your comments a reference to the Sec. 63.71 Application 
of (carrier's name). Comments should include specific information about 
the impact of this proposed discontinuance (or reduction or impairment) 
upon you or your company, including any inability to acquire reasonable 
substitute service.
    (ii) If the carrier is dominant with respect to the service being 
discontinued, reduced or impaired, the notice shall state: The FCC will 
normally authorize this proposed discontinuance of service (or reduction 
or impairment) unless it is shown that customers would be unable to 
receive service or a reasonable substitute from another carrier or that 
the public convenience and necessity is otherwise adversely affected. If 
you wish to object, you should file your comments as soon as possible, 
but no later than 30 days after the Commission releases public notice of 
the proposed discontinuance. Address them to the Federal Communications 
Commission, Wireline Competition Bureau, Competition Policy Division, 
Washington, DC 20554, and include in your comments a reference to the 
Sec. 63.71 Application of (carrier's name). Comments should include 
specific information about the impact of this proposed discontinuance 
(or reduction or impairment) upon you or your company, including any 
inability to acquire reasonable substitute service.
    (b) The carrier shall file with this Commission, on or after the 
date on which notice has been given to all affected customers, an 
application which shall contain the following:
    (1) Caption--``Section 63.71 Application'';
    (2) Information listed in Sec. 63.71(a) (1) through (4) above;
    (3) Brief description of the dates and methods of notice to all 
affected customers;
    (4) Whether the carrier is considered dominant or non-dominant with 
respect to the service to be discontinued, reduced or impaired; and
    (5) Any other information the Commission may require.
    (c) The application to discontinue, reduce or impair service, if 
filed by a domestic, non-dominant carrier, shall be automatically 
granted on the 31st day after its filing with the Commission without any 
Commission notification to the applicant unless the Commission has 
notified the applicant that the grant will not be automatically 
effective. The application to discontinue, reduce or impair service, if 
filed by a domestic, dominant carrier, shall be automatically granted on 
the 60th day after its filing with the Commission without any Commission 
notification to the applicant unless the Commission has notified the 
applicant that the grant will not be automatically effective. For 
purposes of this section, an application will be deemed filed on the 
date the Commission releases public notice of the filing.
    (d) Procedures for discontinuance, reduction or impairment of 
international services are in Sec. 63.19.

[64 FR 39939, July 23, 1999, as amended at 71 FR 65751, Nov. 9, 2006; 73 
FR 56741, Sept. 30, 2008]



Sec. 63.90  Publication and posting of notices.

    (a) Immediately upon the filing of an application or informal 
request (except a request under Sec. 63.71) for authority to close or 
otherwise discontinue the operation, or reduce the hours of service at a 
telephone exchange (except an exchange located at a military 
establishment), the applicant shall post a public notice at least 51 cm 
by 61 cm (20 inches by 24 inches), with letter of commensurate size, in 
a conspicuous place in the exchange affected, and also in the window of 
any such exchange having window space fronting on a public street at 
street level. Such notice shall be posted at least 14 days and

[[Page 303]]

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

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



Sec. 63.100  Notification of service outage.

    The requirements for communications providers concerning 
communications disruptions and the filing of outage reports are set 
forth in part 4 of this chapter.

[69 FR 70342, Dec. 3, 2004]

                   Contents of Applications; Examples



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

    The application shall contain:
    (a) The name and address of each applicant;
    (b) The name, title, and post office address of the officer to whom 
correspondence concerning the application is to be addressed;
    (c) Nature of proposed discontinuance, reduction, or impairment;
    (d) Identification of community or part of community involved and 
date on which applicant desires to make proposed discontinuance, 
reduction, or impairment effective; if for a temporary period only, 
indicate the approximate period for which authorization is desired;
    (e) Proposed new tariff listing, if any, and difference, if any, 
between present charges to the public and charges for the service to be 
substituted;

[[Page 304]]

    (f) Description of the service area affected including population 
and general character of business of the community;
    (g) Name of any other carrier or carriers providing telegraph or 
telephone service to the community;
    (h) Statement of the reasons for proposed discontinuance, reduction, 
or impairment;
    (i) Statement of the factors showing that neither present nor future 
public convenience and necessity would be adversely affected by the 
granting of the application;
    (j) Description of any previous discontinuance, reduction, or 
impairment of service to the community affected by the application, 
which has been made by the applicant during the 12 months preceding 
filing of application, and statement of any present plans for future 
discontinuance, reduction, or impairment of service to such community;
    (k) A map or sketch showing:
    (1) Routes of line proposed to be removed from service and of 
alternate lines, if any, to be retained;
    (2) Type and ownership of structures (open wire, aerial cable, 
underground cable, carrier systems, etc.);
    (3) Cities and towns along routes with approximate population of 
each, and route kilometers between the principal points;
    (4) Location of important operating centers and repeater or relay 
points;
    (5) State boundary lines through which the facilities extend;
    (l) A wire chart showing, for both the line proposed to be removed 
and the alternate lines to be retained, the regular and normal 
assignment of each wire, its method of operation, the number of channels 
and normal assignment of each;
    (m) The number of wires or cables to be removed and the kind, size, 
and length of each;
    (n) A complete statement showing how the traffic load on the line 
proposed to be removed will be diverted to other lines and the adequacy 
of such other lines to handle the increased load.

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



Sec. 63.501  Contents of applications to sever physical connection or to 

terminate or suspend interchange of traffic with another carrier.

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

[[Page 305]]

    (o) Amount of traffic interchanged for each month during preceding 
6-month period;
    (p) Statement as to whether severance of physical connection or 
termination or suspension of interchange of traffic is being made with 
consent of other carrier.



Sec. 63.504  Contents of applications to close a public toll station where no 

other such toll station of the applicant in the community will continue 

service and where telephone toll service is not otherwise available to 

the public through a telephone exchange connected with the toll lines of a 

carrier.

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



Sec. 63.505  Contents of applications for any type of discontinuance, 

reduction, or impairment of telephone service not specifically provided for in 

this part.

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

[[Page 306]]

by the application, which has been made by the applicant during the 12 
months preceding filing of application, and statement of any present 
plans for future discontinuance, reduction, or impairment of service to 
such community;
    (k) Description of the service involved, including:
    (1) Existing telephone service by the applicant available to the 
community or part thereof involved;
    (2) Telephone service (available from applicant or others) which 
would remain in the community or part thereof involved in the event the 
application is granted;
    (l) A statement of the number of toll messages sent-paid and 
received-collect and the revenues from such traffic in connection with 
the service proposed to be discontinued, reduced, or impaired for each 
of the past 6 months; and, if the volume of such traffic handled in the 
area has decreased during recent years, the reasons therefor.

[45 FR 6586, Jan. 29, 1980]



Sec. 63.601  Contents of applications for authority to reduce the hours of 

service of public coast stations under the conditions specified in Sec. 63.70.

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

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

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

Data regarding public coast station_____________________________________

                                                      (Call and address)
Present hours:
 Monday through Friday__________________________________________________
 Saturday_______________________________________________________________
 Sunday_________________________________________________________________
Proposed hours:
 Monday through Friday__________________________________________________
 Saturday_______________________________________________________________
 Sunday_________________________________________________________________
Proposed effective time and date of change

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

 during total hours to be deleted_______________________________________

 during maximum hour to be deleted______________________________________

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

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

    Request for Designation as a Recognized Private Operating Agency



Sec. 63.701  Contents of application.

    Except as otherwise provided in this part, any party requesting 
designation as a recognized operating agency within the meaning of the 
International Telecommunication Convention shall file a request for such 
designation with the Commission. A request for designation as a 
recognized operating agency within the meaning of the International 
Telecommunication Convention shall include a statement of the nature of 
the services to be provided and a statement that the party is aware that 
it is obligated under Article 6 of the ITU Constitution to obey the 
mandatory provisions thereof, and all regulations promulgated 
thereunder, and a pledge that it will engage in no conduct or operations 
that contravene such mandatory provisions and that it will otherwise 
obey the Convention and regulations in all respects. The party must also 
include a statement that it is aware that failure to comply will result 
in an order from the Federal Communications Commission to cease and 
desist from future violations of an ITU regulation and may result in 
revocation of its recognized operating agency status by the United 
States Department of State. Such statement must include the following 
information where applicable:
    (a) The name and address of each applicant;
    (b) The Government, State, or Territory under the laws of which each 
corporate applicant is organized;

[[Page 307]]

    (c) The name, title and post office address of the officer of a 
corporate applicant, or representative of a non-corporate applicant, to 
whom correspondence concerning the application is to be addressed;
    (d) A statement of the ownership of a non-corporate applicant, or 
the ownership of the stock of a corporate applicant, including an 
indication whether the applicant or its stock is owned directly or 
indirectly by an alien;
    (e) A copy of each corporate applicant's articant's articles of 
incorporation (or its equivalent) and of its corporate bylaws;
    (f) A statement whether the applicant is a carrier subject to 
section 214 of the Communications Act, an operator of broadcast or other 
radio facilities, licensed under title III of the Act, capable of 
causing harmful interference with the radio transmissions of other 
countries, or a non-carrier provider of services classed as ``enhanced'' 
under Sec. 64.702(a);
    (g) A statement that the services for which designated as a 
recognized private operating agency is sought will be extended to a 
point outside the United States or are capable of causing harmful 
interference of other radio transmission and a statement of the nature 
of the services to be provided;
    (h) A statement setting forth the points between which the services 
are to be provided; and
    (i) A statement as to whether covered services are provided by 
facilities owned by the applicant, by facilities leased from another 
entity, or other arrangement and a description of the arrangement.
    (j) Subject to the availability of electronic forms, all filings 
described in this section must be filed electronically through the 
International Bureau Filing System (IBFS). A list of forms that are 
available for electronic filing can be found on the IBFS homepage. For 
information on electronic filing requirements, see part 1, Sec. Sec. 
1.1000 through 1.10018 of this chapter and the IBFS homepage at http://
www.fcc.gov/ibfs. See also Sec. Sec. 63.20 and 63.53.

[51 FR 18448, May 20, 1986, as amended at 69 FR 29902, May 26, 2004; 70 
FR 38800, July 6, 2005]



Sec. 63.702  Form.

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

[51 FR 18448, May 20, 1986]



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



                     Subpart A_Traffic Damage Claims

Sec.
64.1 Traffic damage claims.

      Subpart B_Restrictions on Indecent Telephone Message Services

64.201 Restrictions on indecent telephone message services.

     Subpart C_Furnishing of Facilities to Foreign Governments for 
                      International Communications

64.301 Furnishing of facilities to foreign governments for international 
          communications.

   Subpart D_Procedures for Handling Priority Services in Emergencies

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

        Subpart E_Use of Recording Devices by Telephone Companies

64.501 Recording of telephone conversations with telephone companies.

    Subpart F_Telecommunications Relay Services and Related Customer 
            Premises Equipment for Persons With Disabilities

64.601 Definitions and provisions of general applicability.
64.602 Jurisdiction.
64.603 Provision of services.
64.604 Mandatory minimum standards.
64.605 Emergency calling requirements.
64.606 Internet-based TRS provider and TRS program certification.
64.607 Furnishing related customer premises equipment.
64.608 Provision of hearing aid compatible telephones by exchange 
          carriers.
64.609 Enforcement of related customer premises equipment rules.
64.610 Establishment of a National Deaf-Blind Equipment Distribution 
          Program.

[[Page 308]]

64.611 Internet-based TRS registration.
64.613 Numbering directory for Internet-based TRS users.
64.615 TRS User Registration Database and administrator.
64.617 Neutral Video Communication Service Platform.
64.619 VRS Access Technology Reference Platform and administrator.
64.621 Interoperability and portability.
64.623 Administrator requirements.
64.630 Applicability of change of default TRS provider rules.
64.631 Verification of orders for change of default TRS providers.
64.632 Letter of authorization form and content.
64.633 Procedures for resolution of unauthorized changes in default 
          provider.
64.634 Procedures where the Fund has not yet reimbursed the provider.
64.635 Procedures where the Fund has already reimbursed the provider.
64.636 Prohibition of default provider freezes.

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

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

   Subpart H_Extension of Unsecured Credit for Interstate and Foreign 
        Communications Services to Candidates for Federal Office

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

                      Subpart I_Allocation of Costs

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

Subpart J [Reserved]

   Subpart K_Changes in Preferred Telecommunications Service Providers

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

  Subpart L_Restrictions on Telemarketing, Telephone Solicitation, and 
                          Facsimile Advertising

64.1200 Delivery restrictions.
64.1201 Restrictions on billing name and address disclosure.
64.1202 Public safety answering point do-not-call registry.

                 Subpart M_Provision of Payphone Service

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

                   Subpart N_Expanded Interconnection

64.1401 Expanded interconnection.
64.1402 Rights and responsibilities of interconnectors.

    Subpart O_Interstate Pay-Per-Call and Other Information Services

64.1501 Definitions.
64.1502 Limitations on the provision of pay-per-call services.
64.1503 Termination of pay-per-call and other information programs.
64.1504 Restrictions on the use of toll-free numbers.
64.1505 Restrictions on collect telephone calls.
64.1506 Number designation.
64.1507 Prohibition on disconnection or interruption of service for 
          failure to remit pay-per-call and similar service charges.

[[Page 309]]

64.1508 Blocking access to 900 service.
64.1509 Disclosure and dissemination of pay-per-call information.
64.1510 Billing and collection of pay-per-call and similar service 
          charges.
64.1511 Forgiveness of charges and refunds.
64.1512 Involuntary blocking of pay-per-call services.
64.1513 Verification of charitable status.
64.1514 Generation of signalling tones.
64.1515 Recovery of costs.

            Subpart P_Calling Party Telephone Number; Privacy

64.1600 Definitions.
64.1601 Delivery requirements and privacy restrictions.
64.1602 Restrictions on use and sale of telephone subscriber information 
          provided pursuant to automatic number identification or charge 
          number services.
64.1603 Customer notification.
64.1604 Prohibition on transmission of inaccurate or misleading caller 
          identification information.
64.1605 Effective date.

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

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

        Subpart R_Geographic Rate Averaging and Rate Integration

64.1801 Geographic rate averaging and rate integration.

  Subpart S_Nondominant Interexchange Carrier Certifications Regarding 
       Geographic Rate Averaging and Rate Integration Requirements

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

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

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

           Subpart U_Customer Proprietary Network Information

64.2001 Basis and purpose.
64.2003 Definitions.
64.2005 Use of customer proprietary network information without customer 
          approval.
64.2007 Approval required for use of customer proprietary network 
          information.
64.2008 Notice required for use of customer proprietary network 
          information.
64.2009 Safeguards required for use of customer proprietary network 
          information.
64.2010 Safeguards on the disclosure of customer proprietary network 
          information.
64.2011 Notification of customer proprietary network information 
          security breaches.

Subparts V-W [Reserved]

                  Subpart X_Subscriber List Information

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

Subpart Y_Truth-in-Billing Requirements for Common Carriers; Billing for 
                          Unauthorized Charges

64.2400 Purpose.
64.2401 Scope.

     Subpart Z_Prohibition on Exclusive Telecommunications Contracts

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

             Subpart AA_Universal Emergency Telephone Number

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

[[Page 310]]

 Subpart BB_Restrictions on Unwanted Mobile Service Commercial Messages

64.3100 Restrictions on mobile service commercial messages.

        Subpart CC_Customer Account Record Exchange Requirements

64.4000 Basis and purpose.
64.4001 Definitions.
64.4002 Notification obligations of LECs.
64.4003 Notification obligations of IXCs.
64.4004 Timeliness of required notifications.
64.4005 Unreasonable terms or conditions on the provision of customer 
          account information.
64.4006 Limitations on use of customer account information.

                Subpart DD_Prepaid Calling Card Providers

64.5000 Definitions.
64.5001 Reporting and certification requirements.

        Subpart EE_TRS Customer Proprietary Network Information.

64.5101 Basis and purpose.
64.5103 Definitions.
64.5105 Use of customer proprietary network information without customer 
          approval.
64.5107 Approval required for use of customer proprietary network 
          information.
64.5108 Notice required for use of customer proprietary network 
          information.
64.5109 Safeguards required for use of customer proprietary network 
          information.
64.5110 Safeguards on the disclosure of customer proprietary network 
          information.
64. 5111 Notification of customer proprietary network information 
          security breaches.

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

    Authority: 47 U.S.C. 154, 254(k); 403(b)(2)(B), (c), Pub. L. 104-
104, 110 Stat. 56. Interpret or apply 47 U.S.C. 201, 218, 222, 225, 226, 
227, 228, 254(k), 616, 620, and the Middle Class Tax Relief and Job 
Creation Act of 2012, Pub. L. 112-96, unless otherwise noted.

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



                     Subpart A_Traffic Damage Claims



Sec. 64.1  Traffic damage claims.

    (a) Each carrier engaged in furnishing radio-telegraph, wire-
telegraph, or ocean-cable service shall maintain separate files for each 
damage claim of a traffic nature filed with the carrier, showing the 
name, address, and nature of business of the claimant, the basis for the 
claim, disposition made, and all correspondence, reports, and records 
pertaining thereto. Such files shall be preserved in accordance with 
existing rules of the Commission (part 42 of this chapter) and at points 
(one or more) to be specifically designated by each carrier.
    (b) The aforementioned carriers shall make no payment as a result of 
any traffic damage claim if the amount of the payment would be in excess 
of the total amount collected by the carrier on the message or messages 
from which the claim arose unless such claim be presented to the carrier 
in writing signed by the claimant and setting forth the reason for the 
claim.



      Subpart B_Restrictions on Indecent Telephone Message Services



Sec. 64.201  Restrictions on indecent telephone message services.

    (a) It is a defense to prosecution for the provision of indecent 
communications under section 223(b)(2) of the Communications Act of 
1934, as amended (the Act), 47 U.S.C. 223(b)(2), that the defendant has 
taken the action set forth in paragraph (a)(1) of this section and, in 
addition, has complied with the following: Taken one of the actions set 
forth in paragraphs (a)(2), (3), or (4) of this section to restrict 
access to prohibited communications to persons eighteen years of age or 
older, and has additionally complied with paragraph (a)(5) of this 
section, where applicable:
    (1) Has notified the common carrier identified in section 223(c)(1) 
of the Act, in writing, that he or she is providing the kind of service 
described in section 223(b)(2) of the Act.
    (2) Requires payment by credit card before transmission of the 
message; or

[[Page 311]]

    (3) Requires an authorized access or identification code before 
transmission of the message, and where the defendant has:
    (i) Issued the code by mailing it to the applicant after reasonably 
ascertaining through receipt of a written application that the applicant 
is not under eighteen years of age; and
    (ii) Established a procedure to cancel immediately the code of any 
person upon written, telephonic or other notice to the defendant's 
business office that such code has been lost, stolen, or used by a 
person or persons under the age of eighteen, or that such code is no 
longer desired; or
    (4) Scrambles the message using any technique that renders the audio 
unintelligible and incomprehensible to the calling party unless that 
party uses a descrambler; and,
    (5) Where the defendant is a message sponsor subscriber to mass 
announcement services tariffed at this Commission and such defendant 
prior to the transmission of the message has requested in writing to the 
carrier providing the public announcement service that calls to this 
message service be subject to billing notification as an adult telephone 
message service.
    (b) A common carrier within the District of Columbia or within any 
State, or in interstate or foreign commerce, shall not, to the extent 
technically feasible, provide access to a communication described in 
section 223(b) of the Act from the telephone of any subscriber who has 
not previously requested in writing the carrier to provide access to 
such communication if the carrier collects from subscribers an 
identifiable charge for such communication that the carrier remits, in 
whole or in part, to the provider of such communication.

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



     Subpart C_Furnishing of Facilities to Foreign Governments for 

                      International Communications



Sec. 64.301  Furnishing of facilities to foreign governments for international 

communications.

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

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

[28 FR 13242, Dec. 5, 1963]



   Subpart D_Procedures for Handling Priority Services in Emergencies



Sec. 64.401  Policies and procedures for provisioning and restoring certain 

telecommunications services in emergencies.

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

[65 FR 48396, Aug. 8, 2000]



Sec. 64.402  Policies and procedures for the provision of priority access 

service by commercial mobile radio service providers.

    Commercial mobile radio service providers that elect to provide 
priority access service to National Security and Emergency Preparedness 
personnel shall provide priority access service in

[[Page 312]]

accordance with the policies and procedures set forth in Appendix B to 
this part.

[65 FR 48396, Aug. 8, 2000]



        Subpart E_Use of Recording Devices by Telephone Companies



Sec. 64.501  Recording of telephone conversations with telephone companies.

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

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

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



    Subpart F_Telecommunications Relay Services and Related Customer 

            Premises Equipment for Persons With Disabilities

    Authority: 47 U.S.C. 151-154; 225, 255, 303(r), 616, and 620.

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



Sec. 64.601  Definitions and provisions of general applicability.

    (a) For purposes of this subpart, the terms Public Safety Answering 
Point (PSAP), statewide default answering point, and appropriate local 
emergency authority are defined in 47 CFR 64.3000; the terms pseudo-ANI 
and Wireline E911 Network are defined in 47 CFR 9.3; the term affiliate 
is defined in 47 CFR 52.12(a)(1)(i), and the terms majority and debt are 
defined in 47 CFR 52.12(a)(1)(ii).
    (1) 711. The abbreviated dialing code for accessing relay services 
anywhere in the United States.
    (2) ACD platform. The hardware and/or software that comprise the 
essential call center function of call distribution, and that are a 
necessary core component of Internet-based TRS.
    (3) American Sign Language (ASL). A visual language based on hand 
shape, position, movement, and orientation of the hands in relation to 
each other and the body.
    (4) ANI. For 911 systems, the Automatic Number Identification (ANI) 
identifies the calling party and may be used as the callback number.
    (5) ASCII. An acronym for American Standard Code for Information 
Interexchange which employs an eight bit code and can operate at any 
standard transmission baud rate including 300, 1200, 2400, and higher.
    (6) Authorized provider. An iTRS provider that becomes the iTRS 
user's new default provider, having obtained the

[[Page 313]]

user's authorization verified in accordance with the procedures 
specified in this part.
    (7) Baudot. A seven bit code, only five of which are information 
bits. Baudot is used by some text telephones to communicate with each 
other at a 45.5 baud rate.
    (8) Call release. A TRS feature that allows the CA to sign-off or be 
``released'' from the telephone line after the CA has set up a telephone 
call between the originating TTY caller and a called TTY party, such as 
when a TTY user must go through a TRS facility to contact another TTY 
user because the called TTY party can only be reached through a voice-
only interface, such as a switchboard.
    (9) Common carrier or carrier. Any common carrier engaged in 
interstate Communication by wire or radio as defined in section 3(h) of 
the Communications Act of 1934, as amended (the Act), and any common 
carrier engaged in intrastate communication by wire or radio, 
notwithstanding sections 2(b) and 221(b) of the Act.
    (10) Communications assistant (CA). A person who transliterates or 
interprets conversation between two or more end users of TRS. CA 
supersedes the term ``TDD operator.''
    (11) Default provider. The iTRS provider that registers and assigns 
a ten-digit telephone number to an iTRS user pursuant to Sec. 64.611.
    (12) Default provider change order. A request by an iTRS user to an 
iTRS provider to change the user's default provider.
    (13) Hearing carry over (HCO). A form of TRS where the person with 
the speech disability is able to listen to the other end user and, in 
reply, the CA speaks the text as typed by the person with the speech 
disability. The CA does not type any conversation. Two-line HCO is an 
HCO service that allows TRS users to use one telephone line for hearing 
and the other for sending TTY messages. HCO-to-TTY allows a relay 
conversation to take place between an HCO user and a TTY user. HCO-to-
HCO allows a relay conversation to take place between two HCO users.
    (14) Interconnected VoIP service. The term ``interconnected VoIP 
service'' has the meaning given such term under Sec. 9.3 of this 
chapter, as such section may be amended from time to time.
    (15) Internet-based TRS (iTRS). A telecommunications relay service 
(TRS) in which an individual with a hearing or a speech disability 
connects to a TRS communications assistant using an Internet Protocol-
enabled device via the Internet, rather than the public switched 
telephone network. Internet-based TRS does not include the use of a text 
telephone (TTY) over an interconnected voice over Internet Protocol 
service.
    (16) Internet Protocol Captioned Telephone Service (IP CTS). A 
telecommunications relay service that permits an individual who can 
speak but who has difficulty hearing over the telephone to use a 
telephone and an Internet Protocol-enabled device via the Internet to 
simultaneously listen to the other party and read captions of what the 
other party is saying. With IP CTS, the connection carrying the captions 
between the relay service provider and the relay service user is via the 
Internet, rather than the public switched telephone network.
    (17) Internet Protocol Relay Service (IP Relay). A 
telecommunications relay service that permits an individual with a 
hearing or a speech disability to communicate in text using an Internet 
Protocol-enabled device via the Internet, rather than using a text 
telephone (TTY) and the public switched telephone network.
    (18) IP Relay access technology. Any equipment, software, or other 
technology issued, leased, or provided by an Internet-based TRS provider 
that can be used to make and receive an IP Relay call.
    (19) iTRS access technology. Any equipment, software, or other 
technology issued, leased, or provided by an Internet-based TRS provider 
that can be used to make and receive an Internet-based TRS call.
    (20) Neutral Video Communication Service Platform. The service 
platform that allows a registered Internet-based VRS user to use VRS 
access technology to make and receive VRS and point-to-point calls 
through a VRS CA service provider. The functions provided by the Neutral 
Video Communication Service Platform include the provision of a

[[Page 314]]

video link, user registration and validation, authentication, 
authorization, ACD platform functions, routing (including emergency call 
routing), call setup, mapping, call features (such as call forwarding 
and video mail), and such other features and functions not provided by 
the VRS CA service provider.
    (21) New default provider. An iTRS provider that, either directly or 
through its numbering partner, initiates or implements the process to 
become the iTRS user's default provider by replacing the iTRS user's 
original default provider.
    (22) Non-English language relay service. A telecommunications relay 
service that allows persons with hearing or speech disabilities who use 
languages other than English to communicate with voice telephone users 
in a shared language other than English, through a CA who is fluent in 
that language.
    (23) Non-interconnected VoIP service. The term ``non-interconnected 
VoIP service''--
    (i) Means a service that--
    (A) Enables real-time voice communications that originate from or 
terminate to the user's location using Internet protocol or any 
successor protocol; and
    (B) Requires Internet protocol compatible customer premises 
equipment; and
    (ii) Does not include any service that is an interconnected VoIP 
service.
    (24) Numbering partner. Any entity with which an Internet-based TRS 
provider has entered into a commercial arrangement to obtain North 
American Numbering Plan telephone numbers.
    (25) Original default provider. An iTRS provider that is the iTRS 
user's default provider immediately before that iTRS user's default 
provider is changed.
    (26) Qualified interpreter. An interpreter who is able to interpret 
effectively, accurately, and impartially, both receptively and 
expressively, using any necessary specialized vocabulary.
    (27) Registered Internet-based TRS user. An individual that has 
registered with a VRS or IP Relay provider as described in Sec. 64.611.
    (28) Registered Location. The most recent information obtained by a 
VRS or IP Relay provider that identifies the physical location of an end 
user.
    (29) Sign language. A language which uses manual communication and 
body language to convey meaning, including but not limited to American 
Sign Language.
    (30) Speech-to-speech relay service (STS). A telecommunications 
relay service that allows individuals with speech disabilities to 
communicate with voice telephone users through the use of specially 
trained CAs who understand the speech patterns of persons with speech 
disabilities and can repeat the words spoken by that person.
    (31) Speed dialing. A TRS feature that allows a TRS user to place a 
call using a stored number maintained by the TRS facility. In the 
context of TRS, speed dialing allows a TRS user to give the CA a short-
hand'' name or number for the user's most frequently called telephone 
numbers.
    (32) Telecommunications relay services (TRS). Telephone transmission 
services that provide the ability for an individual who has a hearing or 
speech disability to engage in communication by wire or radio with a 
hearing individual in a manner that is functionally equivalent to the 
ability of an individual who does not have a hearing or speech 
disability to communicate using voice communication services by wire or 
radio. Such term includes services that enable two-way communication 
between an individual who uses a text telephone or other nonvoice 
terminal device and an individual who does not use such a device, 
speech-to-speech services, video relay services and non-English relay 
services. TRS supersedes the terms ``dual party relay system,'' 
``message relay services,'' and ``TDD Relay.''
    (33) Text telephone (TTY). A machine that employs graphic 
communication in the transmission of coded signals through a wire or 
radio communication system. TTY supersedes the term ``TDD'' or 
``telecommunications device for the deaf,'' and TT.
    (34) Three-way calling feature. A TRS feature that allows more than 
two parties to be on the telephone line at the same time with the CA.

[[Page 315]]

    (35) TRS Numbering Administrator. The neutral administrator of the 
TRS Numbering Directory selected based on a competitive bidding process.
    (36) TRS Numbering Directory. The database administered by the TRS 
Numbering Administrator, the purpose of which is to map each registered 
Internet-based TRS user's NANP telephone number to his or her end 
device.
    (37) TRS User Registration Database. A system of records containing 
TRS user identification data capable of:
    (i) Receiving and processing subscriber information sufficient to 
identify unique TRS users and to ensure that each has a single default 
provider;
    (ii) Assigning each VRS user a unique identifier;
    (iii) Allowing VRS providers and other authorized entities to query 
the TRS User Registration Database to determine if a prospective user 
already has a default provider;
    (iv) Allowing VRS providers to indicate that a VRS user has used the 
service; and
    (v) Maintaining the confidentiality of proprietary data housed in 
the database by protecting it from theft, loss or disclosure to 
unauthorized persons. The purpose of this database is to ensure accurate 
registration and verification of VRS users and improve the efficiency of 
the TRS program.
    (38) Unauthorized provider. An iTRS provider that becomes the iTRS 
user's new default provider without having obtained the user's 
authorization verified in accordance with the procedures specified in 
this part.
    (39) Unauthorized change. A change in an iTRS user's selection of a 
default provider that was made without authorization verified in 
accordance with the verification procedures specified in this part.
    (40) Video relay service (VRS). A telecommunications relay service 
that allows people with hearing or speech disabilities who use sign 
language to communicate with voice telephone users through video 
equipment. The video link allows the CA to view and interpret the 
party's signed conversation and relay the conversation back and forth 
with a voice caller.
    (41) Visual privacy screen. A screen or any other feature that is 
designed to prevent one party or both parties on the video leg of a VRS 
call from viewing the other party during a call.
    (42) Voice carry over (VCO). A form of TRS where the person with the 
hearing disability is able to speak directly to the other end user. The 
CA types the response back to the person with the hearing disability. 
The CA does not voice the conversation. Two-line VCO is a VCO service 
that allows TRS users to use one telephone line for voicing and the 
other for receiving TTY messages. A VCO-to-TTY TRS call allows a relay 
conversation to take place between a VCO user and a TTY user. VCO-to-VCO 
allows a relay conversation to take place between two VCO users.
    (43) VRS access technology. Any equipment, software, or other 
technology issued, leased, or provided by an Internet-based TRS provider 
that can be used to make and receive a VRS call.
    (44) VRS Access Technology Reference Platform. A software product 
procured by or on behalf of the Commission that provides VRS 
functionality, including the ability to make and receive VRS and point-
to-point calls, dial-around functionality, and the ability to update 
user registration location, and against which providers may test their 
own VRS access technology and platforms for compliance with the 
Commission's interoperability and portability rules.
    (45) VRS CA service provider. A VRS provider that uses the Neutral 
Video Communication Service Platform for the video communication service 
components of VRS.
    (b) For purposes of this subpart, all regulations and requirements 
applicable to common carriers shall also be applicable to providers of 
interconnected VoIP service.

[68 FR 50976, Aug. 25, 2003, as amended at 69 FR 53351, Sept. 1, 2004; 
72 FR 43559, Aug. 6, 2007; 73 FR 41294, July 18, 2008; 76 FR 24400, May 
2, 2011; 76 FR 65969, Oct. 25, 2011; 78 FR 40605, July 5, 2013]



Sec. 64.602  Jurisdiction.

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

[[Page 316]]

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

[65 FR 38436, June 21, 2000]



Sec. 64.603  Provision of services.

    Each common carrier providing telephone voice transmission services 
shall provide, not later than July 26, 1993, in compliance with the 
regulations prescribed herein, throughout the area in which it offers 
services, telecommunications relay services, individually, through 
designees, through a competitively selected vendor, or in concert with 
other carriers. Speech-to-speech relay service and interstate Spanish 
language relay service shall be provided by March 1, 2001. In addition, 
each common carrier providing telephone voice transmission services 
shall provide, not later than October 1, 2001, access via the 711 
dialing code to all relay services as a toll free call. A common carrier 
shall be considered to be in compliance with these regulations:
    (a) With respect to intrastate telecommunications relay services in 
any state that does not have a certified program under Sec. 64.606 and 
with respect to interstate telecommunications relay services, if such 
common carrier (or other entity through which the carrier is providing 
such relay services) is in compliance with Sec. 64.604; or
    (b) With respect to intrastate telecommunications relay services in 
any state that has a certified program under Sec. 64.606 for such 
state, if such common carrier (or other entity through which the carrier 
is providing such relay services) is in compliance with the program 
certified under Sec. 64.606 for such state.

[65 FR 38436, June 21, 2000, as amended at 66 FR 67114, Dec. 28, 2001; 
73 FR 21258, Apr. 21, 2008]



Sec. 64.604  Mandatory minimum standards.

    The standards in this section are applicable December 18, 2000, 
except as stated in paragraphs (c)(2) and (c)(7) of this section.
    (a) Operational standards--(1) Communications assistant (CA). (i) 
TRS providers are responsible for requiring that all CAs be sufficiently 
trained to effectively meet the specialized communications needs of 
individuals with hearing and speech disabilities.
    (ii) CAs must have competent skills in typing, grammar, spelling, 
interpretation of typewritten ASL, and familiarity with hearing and 
speech disability cultures, languages and etiquette. CAs must possess 
clear and articulate voice communications.
    (iii) CAs must provide a typing speed of a minimum of 60 words per 
minute. Technological aids may be used to reach the required typing 
speed. Providers must give oral-to-type tests of CA speed.
    (iv) TRS providers are responsible for requiring that VRS CAs are 
qualified interpreters. A ``qualified interpreter'' is able to interpret 
effectively, accurately, and impartially, both receptively and 
expressively, using any necessary specialized vocabulary.
    (v) CAs answering and placing a TTY-based TRS or VRS call must stay 
with the call for a minimum of ten minutes. CAs answering and placing an 
STS call must stay with the call for a minimum of fifteen minutes.
    (vi) TRS providers must make best efforts to accommodate a TRS 
user's requested CA gender when a call is initiated and, if a transfer 
occurs, at the time the call is transferred to another CA.
    (vii) TRS shall transmit conversations between TTY and voice callers 
in real time.
    (2) Confidentiality and conversation content. (i) Except as 
authorized by section 705 of the Communications Act, 47 U.S.C. 605, CAs 
are prohibited from disclosing the content of any relayed conversation 
regardless of content, and with a limited exception for STS CAs, from 
keeping records of the content of any conversation beyond the duration 
of a call, even if to do so would be inconsistent with state or local 
law. STS CAs may retain information from a particular call in order to 
facilitate the completion of consecutive calls, at the request of the 
user. The caller may request the STS CA to retain such information, or 
the CA may ask the caller if he wants the CA to repeat the same 
information during subsequent calls. The CA may retain the information 
only

[[Page 317]]

for as long as it takes to complete the subsequent calls.
    (ii) CAs are prohibited from intentionally altering a relayed 
conversation and, to the extent that it is not inconsistent with 
federal, state or local law regarding use of telephone company 
facilities for illegal purposes, must relay all conversation verbatim 
unless the relay user specifically requests summarization, or if the 
user requests interpretation of an ASL call. An STS CA may facilitate 
the call of an STS user with a speech disability so long as the CA does 
not interfere with the independence of the user, the user maintains 
control of the conversation, and the user does not object. Appropriate 
measures must be taken by relay providers to ensure that confidentiality 
of VRS users is maintained.
    (3) Types of calls. (i) Consistent with the obligations of 
telecommunications carrier operators, CAs are prohibited from refusing 
single or sequential calls or limiting the length of calls utilizing 
relay services.
    (ii) Relay services shall be capable of handling any type of call 
normally provided by telecommunications carriers unless the Commission 
determines that it is not technologically feasible to do so. Relay 
service providers have the burden of proving the infeasibility of 
handling any type of call.
    (iii) Relay service providers are permitted to decline to complete a 
call because credit authorization is denied.
    (iv) Relay services shall be capable of handling pay-per-call calls.
    (v) TRS providers are required to provide the following types of TRS 
calls: (1) Text-to-voice and voice-to-text; (2) VCO, two-line VCO, VCO-
to-TTY, and VCO-to-VCO; (3) HCO, two-line HCO, HCO-to-TTY, HCO-to-HCO.
    (vi) TRS providers are required to provide the following features: 
(1) Call releasefunctionality; (2) speed dialing functionality; and (3) 
three-way calling functionality.
    (vii) Voice mail and interactive menus. CAs must alert the TRS user 
to the presence of a recorded message and interactive menu through a hot 
key on the CA's terminal. The hot key will send text from the CA to the 
consumer's TTY indicating that a recording or interactive menu has been 
encountered. Relay providers shall electronically capture recorded 
messages and retain them for the length of the call. Relay providers may 
not impose any charges for additional calls, which must be made by the 
relay user in order to complete calls involving recorded or interactive 
messages.
    (viii) TRS providers shall provide, as TRS features, answering 
machine and voice mail retrieval.
    (4) Emergency call handling requirements for TTY-based TRS 
providers. TTY-based TRS providers must use a system for incoming 
emergency calls that, at a minimum, automatically and immediately 
transfers the caller to an appropriate Public Safety Answering Point 
(PSAP). An appropriate PSAP is either a PSAP that the caller would have 
reached if he had dialed 911 directly, or a PSAP that is capable of 
enabling the dispatch of emergency services to the caller in an 
expeditious manner.
    (5) STS called numbers. Relay providers must offer STS users the 
option to maintain at the relay center a list of names and telephone 
numbers which the STS user calls. When the STS user requests one of 
these names, the CA must repeat the name and state the telephone number 
to the STS user. This information must be transferred to any new STS 
provider.
    (6) Visual privacy screens/idle calls. A VRS CA may not enable a 
visual privacy screen or similar feature during a VRS call. A VRS CA 
must disconnect a VRS call if the caller or the called party to a VRS 
call enables a privacy screen or similar feature for more than five 
minutes or is otherwise unresponsive or unengaged for more than five 
minutes, unless the call is a 9-1-1 emergency call or the caller or 
called party is legitimately placed on hold and is present and waiting 
for active communications to commence. Prior to disconnecting the call, 
the CA must announce to both parties the intent to terminate the call 
and may reverse the decision to disconnect if one of the parties 
indicates continued engagement with the call.
    (7) International calls. VRS calls that originate from an 
international IP address will not be compensated, with the

[[Page 318]]

exception of calls made by a U.S. resident who has pre-registered with 
his or her default provider prior to leaving the country, during 
specified periods of time while on travel and from specified regions of 
travel, for which there is an accurate means of verifying the identity 
and location of such callers. For purposes of this section, an 
international IP address is defined as one that indicates that the 
individual initiating the call is located outside the United States.
    (b) Technical standards--(1) ASCII and Baudot. TRS shall be capable 
of communicating with ASCII and Baudot format, at any speed generally in 
use.
    (2) Speed of answer. (i) TRS providers shall ensure adequate TRS 
facility staffing to provide callers with efficient access under 
projected calling volumes, so that the probability of a busy response 
due to CA unavailability shall be functionally equivalent to what a 
voice caller would experience in attempting to reach a party through the 
voice telephone network.
    (ii) TRS facilities shall, except during network failure, answer 85% 
of all calls within 10 seconds by any method which results in the 
caller's call immediately being placed, not put in a queue or on hold. 
The ten seconds begins at the time the call is delivered to the TRS 
facility's network. A TRS facility shall ensure that adequate network 
facilities shall be used in conjunction with TRS so that under projected 
calling volume the probability of a busy response due to loop trunk 
congestion shall be functionally equivalent to what a voice caller would 
experience in attempting to reach a party through the voice telephone 
network.
    (A) The call is considered delivered when the TRS facility's 
equipment accepts the call from the local exchange carrier (LEC) and the 
public switched network actually delivers the call to the TRS facility.
    (B) Abandoned calls shall be included in the speed-of-answer 
calculation.
    (C) A TRS provider's compliance with this rule shall be measured on 
a daily basis.
    (D) The system shall be designed to a P.01 standard.
    (E) A LEC shall provide the call attempt rates and the rates of 
calls blocked between the LEC and the TRS facility to relay 
administrators and TRS providers upon request.
    (iii) Speed of answer requirements for VRS providers. (A) Speed of 
answer requirements for VRS providers are phased-in as follows:
    (1) By January 1, 2007, VRS providers must answer 80% of all VRS 
calls within 120 seconds, measured on a monthly basis;
    (2) By January 1, 2014, VRS providers must answer 85% of all VRS 
calls within 60 seconds, measured on a daily basis; and
    (3) By July 1, 2014, VRS providers must answer 85% of all VRS calls 
within 30 seconds, measured on a daily basis. Abandoned calls shall be 
included in the VRS speed of answer calculation.
    (B) VRS CA service providers must meet the speed of answer 
requirements for VRS providers as measured from the time a VRS call 
reaches facilities operated by the VRS CA service provider.
    (3) Equal access to interexchange carriers. TRS users shall have 
access to their chosen interexchange carrier through the TRS, and to all 
other operator services, to the same extent that such access is provided 
to voice users.
    (4) TRS facilities. (i) TRS shall operate every day, 24 hours a day. 
Relay services that are not mandated by this Commission need not be 
provided every day, 24 hours a day, except VRS.
    (ii) TRS shall have redundancy features functionally equivalent to 
the equipment in normal central offices, including uninterruptible power 
for emergency use.
    (iii) A VRS CA may not relay calls from a location primarily used as 
his or her home.
    (iv) A VRS provider leasing or licensing an automatic call 
distribution (ACD) platform must have a written lease or license 
agreement. Such lease or license agreement may not include any revenue 
sharing agreement or compensation based upon minutes of use. In 
addition, if any such lease is between two eligible VRS providers, the 
lessee or licensee must locate the ACD platform on its own premises and 
must utilize its own employees to manage

[[Page 319]]

the ACD platform. VRS CA service providers are not required to have a 
written lease or licensing agreement for an ACD if they obtain that 
function from the Neutral Video Communication Service Platform.
    (5) Technology. No regulation set forth in this subpart is intended 
to discourage or impair the development of improved technology that 
fosters the availability of telecommunications to person with 
disabilities. TRS facilities are permitted to use SS7 technology or any 
other type of similar technology to enhance the functional equivalency 
and quality of TRS. TRS facilities that utilize SS7 technology shall be 
subject to the Calling Party Telephone Number rules set forth at 47 CFR 
64.1600 et seq.
    (6) Caller ID. When a TRS facility is able to transmit any calling 
party identifying information to the public network, the TRS facility 
must pass through, to the called party, at least one of the following: 
the number of the TRS facility, 711, or the 10-digit number of the 
calling party.
    (c) Functional standards--(1) Consumer complaint logs. (i) States 
and interstate providers must maintain a log of consumer complaints 
including all complaints about TRS in the state, whether filed with the 
TRS provider or the State, and must retain the log until the next 
application for certification is granted. The log shall include, at a 
minimum, the date the complaint was filed, the nature of the complaint, 
the date of resolution, and an explanation of the resolution.
    (ii) Beginning July 1, 2002, states and TRS providers shall submit 
summaries of logs indicating the number of complaints received for the 
12-month period ending May 31 to the Commission by July 1 of each year. 
Summaries of logs submitted to the Commission on July 1, 2001 shall 
indicate the number of complaints received from the date of OMB approval 
through May 31, 2001.
    (2) Contact persons. Beginning on June 30, 2000, State TRS Programs, 
interstate TRS providers, and TRS providers that have state contracts 
must submit to the Commission a contact person and/or office for TRS 
consumer information and complaints about a certified State TRS 
Program's provision of intrastate TRS, or, as appropriate, about the TRS 
provider's service. This submission must include, at a minimum, the 
following:
    (i) The name and address of the office that receives complaints, 
grievances, inquiries, and suggestions;
    (ii) Voice and TTY telephone numbers, fax number, e-mail address, 
and web address; and
    (iii) The physical address to which correspondence should be sent.
    (3) Public access to information. Carriers, through publication in 
their directories, periodic billing inserts, placement of TRS 
instructions in telephone directories, through directory assistance 
services, and incorporation of TTY numbers in telephone directories, 
shall assure that callers in their service areas are aware of the 
availability and use of all forms of TRS. Efforts to educate the public 
about TRS should extend to all segments of the public, including 
individuals who are hard of hearing, speech disabled, and senior 
citizens as well as members of the general population. In addition, each 
common carrier providing telephone voice transmission services shall 
conduct, not later than October 1, 2001, ongoing education and outreach 
programs that publicize the availability of 711 access to TRS in a 
manner reasonably designed to reach the largest number of consumers 
possible.
    (4) Rates. TRS users shall pay rates no greater than the rates paid 
for functionally equivalent voice communication services with respect to 
such factors as the duration of the call, the time of day, and the 
distance from the point of origination to the point of termination.
    (5) Jurisdictional separation of costs--(i) General. Where 
appropriate, costs of providing TRS shall be separated in accordance 
with the jurisdictional separation procedures and standards set forth in 
the Commission's regulations adopted pursuant to section 410 of the 
Communications Act of 1934, as amended.
    (ii) Cost recovery. Costs caused by interstate TRS shall be 
recovered from all subscribers for every interstate service, utilizing a 
shared-funding cost recovery mechanism. Except as noted in this 
paragraph, with respect to VRS, costs caused by intrastate TRS shall be

[[Page 320]]

recovered from the intrastate jurisdiction. In a state that has a 
certified program under Sec. 64.606, the state agency providing TRS 
shall, through the state's regulatory agency, permit a common carrier to 
recover costs incurred in providing TRS by a method consistent with the 
requirements of this section. Costs caused by the provision of 
interstate and intrastate VRS shall be recovered from all subscribers 
for every interstate service, utilizing a shared-funding cost recovery 
mechanism.
    (iii) Telecommunications Relay Services Fund. Effective July 26, 
1993, an Interstate Cost Recovery Plan, hereinafter referred to as the 
TRS Fund, shall be administered by an entity selected by the Commission 
(administrator). The initial administrator, for an interim period, will 
be the National Exchange Carrier Association, Inc.
    (A) Contributions. Every carrier providing interstate 
telecommunications services (including interconnected VoIP service 
providers pursuant to Sec. 64.601(b)) and every provider of non-
interconnected VoIP service shall contribute to the TRS Fund on the 
basis of interstate end-user revenues as described herein. Contributions 
shall be made by all carriers who provide interstate services, 
including, but not limited to, cellular telephone and paging, mobile 
radio, operator services, personal communications service (PCS), access 
(including subscriber line charges), alternative access and special 
access, packet-switched, WATS, 800, 900, message telephone service 
(MTS), private line, telex, telegraph, video, satellite, intraLATA, 
international and resale services.
    (B) Contribution computations. Contributors' contributions to the 
TRS fund shall be the product of their subject revenues for the prior 
calendar year and a contribution factor determined annually by the 
Commission. The contribution factor shall be based on the ratio between 
expected TRS Fund expenses to the contributors' revenues subject to 
contribution. In the event that contributions exceed TRS payments and 
administrative costs, the contribution factor for the following year 
will be adjusted by an appropriate amount, taking into consideration 
projected cost and usage changes. In the event that contributions are 
inadequate, the fund administrator may request authority from the 
Commission to borrow funds commercially, with such debt secured by 
future years' contributions. Each subject contributor that has revenues 
subject to contribution must contribute at least $25 per year. 
Contributors whose annual contributions total less than $1,200 must pay 
the entire contribution at the beginning of the contribution period. 
Contributors whose contributions total $1,200 or more may divide their 
contributions into equal monthly payments. Contributors shall complete 
and submit, and contributions shall be based on, a ``Telecommunications 
Reporting Worksheet'' (as published by the Commission in the Federal 
Register). The worksheet shall be certified to by an officer of the 
contributor, and subject to verification by the Commission or the 
administrator at the discretion of the Commission. Contributors' 
statements in the worksheet shall be subject to the provisions of 
section 220 of the Communications Act of 1934, as amended. The fund 
administrator may bill contributors a separate assessment for reasonable 
administrative expenses and interest resulting from improper filing or 
overdue contributions. The Chief of the Consumer and Governmental 
Affairs Bureau may waive, reduce, modify or eliminate contributor 
reporting requirements that prove unnecessary and require additional 
reporting requirements that the Bureau deems necessary to the sound and 
efficient administration of the TRS Fund.
    (C) Registration Requirements for Providers of Non-Interconnected 
VoIP Service--(1)Applicability. A non-interconnected VoIP service 
provider that will provide interstate service that generates interstate 
end-user revenue that is subject to contribution to the 
Telecommunications Relay Service Fund shall file the registration 
information described in paragraph (c)(5)(iii)(C)(2) of this section in 
accordance with the procedures described in paragraphs (c)(5)(iii)(C)(3) 
and (c)(5)(iii)(C)(4) of this section. Any non-interconnected VoIP 
service provider already providing interstate service

[[Page 321]]

that generates interstate end-user revenue that is subject to 
contribution to the Telecommunications Relay Service Fund on the 
effective date of these rules shall submit the relevant portion of its 
FCC Form 499-A in accordance with paragraphs (c)(5)(iii)(C)(2) and (3) 
of this section.
    (2) Information required for purposes of TRS Fund contributions. A 
non-interconnected VoIP service provider that is subject to the 
registration requirement pursuant to paragraph (c)(5)(iii)(C)(1) of this 
section shall provide the following information:
    (i) The provider's business name(s) and primary address;
    (ii) The names and business addresses of the provider's chief 
executive officer, chairman, and president, or, in the event that a 
provider does not have such executives, three similarly senior-level 
officials of the provider;
    (iii) The provider's regulatory contact and/or designated agent;
    (iv) All names that the provider has used in the past; and
    (v) The state(s) in which the provider provides such service.
    (3) Submission of registration. A provider that is subject to the 
registration requirement pursuant to paragraph (c)(5)(iii)(C)(1) of this 
section shall submit the information described in paragraph 
(c)(5)(iii)(C)(2) of this section in accordance with the Instructions to 
FCC Form 499-A. FCC Form 499-A must be submitted under oath and penalty 
of perjury.
    (4) Changes in information. A provider must notify the Commission of 
any changes to the information provided pursuant to paragraph 
(c)(5)(iii)(C)(2) of this section within no more than one week of the 
change. Providers may satisfy this requirement by filing the relevant 
portion of FCC Form 499-A in accordance with the Instructions to such 
form.
    (D) Data collection and audits. (1) TRS providers seeking 
compensation from the TRS Fund shall provide the administrator with true 
and adequate data, and other historical, projected and state rate 
related information reasonably requested to determine the TRS Fund 
revenue requirements and payments. TRS providers shall provide the 
administrator with the following: total TRS minutes of use, total 
interstate TRS minutes of use, total TRS investment in general in 
accordance with part 32 of this chapter, and other historical or 
projected information reasonably requested by the administrator for 
purposes of computing payments and revenue requirements.
    (2) Call data required from all TRS providers. In addition to the 
data requested by paragraph (c)(5)(iii)(C)(1) of this section, TRS 
providers seeking compensation from the TRS Fund shall submit the 
following specific data associated with each TRS call for which 
compensation is sought:
    (i) The call record ID sequence;
    (ii) CA ID number;
    (iii) Session start and end times noted at a minimum to the nearest 
second;
    (iv) Conversation start and end times noted at a minimum to the 
nearest second;
    (v) Incoming telephone number and IP address (if call originates 
with an IP-based device) at the time of the call;
    (vi) Outbound telephone number (if call terminates to a telephone) 
and IP address (if call terminates to an IP-based device) at the time of 
call;
    (vii) Total conversation minutes;
    (viii) Total session minutes;
    (ix) The call center (by assigned center ID number) that handled the 
call; and
    (x) The URL address through which the call is initiated.
    (3) Additional call data required from Internet-based Relay 
Providers. In addition to the data required by paragraph 
(c)(5)(iii)(C)(2) of this section, Internet-based Relay Providers 
seeking compensation from the Fund shall submit speed of answer 
compliance data.
    (4) Providers submitting call record and speed of answer data in 
compliance with paragraphs (c)(5)(iii)(C)(2) and (c)(5)(iii)(C)(3) of 
this section shall:
    (i) Employ an automated record keeping system to capture such data 
required pursuant to paragraph (c)(5)(iii)(C)(2) of this section for 
each TRS call for which minutes are submitted to the fund administrator 
for compensation; and
    (ii) Submit such data electronically, in a standardized format. For 
purposes of this subparagraph, an automated

[[Page 322]]

record keeping system is a system that captures data in a computerized 
and electronic format that does not allow human intervention during the 
call session for either conversation or session time.
    (5) Certification. The chief executive officer (CEO), chief 
financial officer (CFO), or other senior executive of a TRS provider 
with first hand knowledge of the accuracy and completeness of the 
information provided, when submitting a request for compensation from 
the TRS Fund must, with each such request, certify as follows:

    I swear under penalty of perjury that:
    (i) I am ------------ (name and title)------------, an officer of 
the above-named reporting entity and that I have examined the foregoing 
reports and that all requested information has been provided and all 
statements of fact, as well as all cost and demand data contained in 
this Relay Services Data Request, are true and accurate; and
    (ii) The TRS calls for which compensation is sought were handled in 
compliance with Section 225 of the Communications Act and the 
Commission's rules and orders, and are not the result of impermissible 
financial incentives or payments to generate calls.

    (6) Audits. The fund administrator and the Commission, including the 
Office of Inspector General, shall have the authority to examine and 
verify TRS provider data as necessary to assure the accuracy and 
integrity of TRS Fund payments. TRS providers must submit to audits 
annually or at times determined appropriate by the Commission, the fund 
administrator, or by an entity approved by the Commission for such 
purpose. A TRS provider that fails to submit to a requested audit, or 
fails to provide documentation necessary for verification upon 
reasonable request, will be subject to an automatic suspension of 
payment until it submits to the requested audit or provides sufficient 
documentation.
    (7) Call data record retention. Internet-based TRS providers shall 
retain the data required to be submitted by this section, and all other 
call detail records, other records that support their claims for payment 
from the TRS Fund, and records used to substantiate the costs and 
expense data submitted in the annual relay service data request form, in 
an electronic format that is easily retrievable, for a minimum of five 
years.
    (E) Payments to TRS providers. (1) TRS Fund payments shall be 
distributed to TRS providers based on formulas approved or modified by 
the Commission. The administrator shall file schedules of payment 
formulas with the Commission. Such formulas shall be designed to 
compensate TRS providers for reasonable costs of providing interstate 
TRS, and shall be subject to Commission approval. Such formulas shall be 
based on total monthly interstate TRS minutes of use. The formulas 
should appropriately compensate interstate providers for the provision 
of TRS, whether intrastate or interstate.
    (2) TRS minutes of use for purposes of interstate cost recovery 
under the TRS Fund are defined as the minutes of use for completed 
interstate TRS calls placed through the TRS center beginning after call 
set-up and concluding after the last message call unit.
    (3) In addition to the data required under paragraph (c)(5)(iii)(C) 
of this section, all TRS providers, including providers who are not 
interexchange carriers, local exchange carriers, or certified state 
relay providers, must submit reports of interstate TRS minutes of use to 
the administrator in order to receive payments.
    (4) The administrator shall establish procedures to verify payment 
claims, and may suspend or delay payments to a TRS provider if the TRS 
provider fails to provide adequate verification of payment upon 
reasonable request, or if directed by the Commission to do so. The TRS 
Fund administrator shall make payments only to eligible TRS providers 
operating pursuant to the mandatory minimum standards as required in 
this section, and after disbursements to the administrator for 
reasonable expenses incurred by it in connection with TRS Fund 
administration. TRS providers receiving payments shall file a form 
prescribed by the administrator. The administrator shall fashion a form 
that is consistent with 47 CFR parts 32 and 36 procedures reasonably 
tailored to meet the needs of TRS providers.

[[Page 323]]

    (5) The Commission shall have authority to audit providers and have 
access to all data, including carrier specific data, collected by the 
fund administrator. The fund administrator shall have authority to audit 
TRS providers reporting data to the administrator.
    (6) The administrator shall not be obligated to pay any request for 
compensation until it has been established as compensable. A request 
shall be established as compensable only after the administrator, in 
consultation with the Commission, or the Commission determines that the 
provider has met its burden to demonstrate that the claim is compensable 
under applicable Commission rules and the procedures established by the 
administrator. Any request for compensation for which payment has been 
suspended or withheld in accordance with paragraph (c)(5)(iii)(L) of 
this section shall not be established as compensable until the 
administrator, in consultation with the Commission, or the Commission 
determines that the request is compensable in accordance with paragraph 
(c)(5)(iii)(L)(4) of this section.
    (F) Eligibility for payment from the TRS Fund. (1) TRS providers, 
except Internet-based TRS providers, eligible for receiving payments 
from the TRS Fund must be:
    (i) TRS facilities operated under contract with and/or by certified 
state TRS programs pursuant to Sec. 64.606; or
    (ii) TRS facilities owned or operated under contract with a common 
carrier providing interstate services operated pursuant to this section; 
or
    (iii) Interstate common carriers offering TRS pursuant to this 
section.
    (2) Internet-based TRS providers eligible for receiving payments 
from the TRS fund must be certified by the Commission pursuant to Sec. 
64.606.
    (G) Any eligible TRS provider as defined in paragraph (c)(5)(iii)(F) 
of this section shall notify the administrator of its intent to 
participate in the TRS Fund thirty (30) days prior to submitting reports 
of TRS interstate minutes of use in order to receive payment settlements 
for interstate TRS, and failure to file may exclude the TRS provider 
from eligibility for the year.
    (H) Administrator reporting, monitoring, and filing requirements. 
The administrator shall perform all filing and reporting functions 
required in paragraphs (c)(5)(iii)(A) through (c)(5)(iii)(J) of this 
section. TRS payment formulas and revenue requirements shall be filed 
with the Commission on May 1 of each year, to be effective the following 
July 1. The administrator shall report annually to the Commission an 
itemization of monthly administrative costs which shall consist of all 
expenses, receipts, and payments associated with the administration of 
the TRS Fund. The administrator is required to keep the TRS Fund 
separate from all other funds administered by the administrator, shall 
file a cost allocation manual (CAM) and shall provide the Commission 
full access to all data collected pursuant to the administration of the 
TRS Fund. The administrator shall account for the financial transactions 
of the TRS Fund in accordance with generally accepted accounting 
principles for federal agencies and maintain the accounts of the TRS 
Fund in accordance with the United States Government Standard General 
Ledger. When the administrator, or any independent auditor hired by the 
administrator, conducts audits of providers of services under the TRS 
program or contributors to the TRS Fund, such audits shall be conducted 
in accordance with generally accepted government auditing standards. In 
administering the TRS Fund, the administrator shall also comply with all 
relevant and applicable federal financial management and reporting 
statutes. The administrator shall establish a non-paid voluntary 
advisory committee of persons from the hearing and speech disability 
community, TRS users (voice and text telephone), interstate service 
providers, state representatives, and TRS providers, which will meet at 
reasonable intervals (at least semi-annually) in order to monitor TRS 
cost recovery matters. Each group shall select its own representative to 
the committee. The administrator's annual report shall include a 
discussion of the advisory committee deliberations.
    (I) Information filed with the administrator. The Chief Executive 
Officer (CEO), Chief Financial Officer (CFO), or other senior executive 
of a provider

[[Page 324]]

submitting minutes to the Fund for compensation must, in each instance, 
certify, under penalty of perjury, that the minutes were handled in 
compliance with section 225 and the Commission's rules and orders, and 
are not the result of impermissible financial incentives or payments to 
generate calls. The CEO, CFO, or other senior executive of a provider 
submitting cost and demand data to the TRS Fund administrator shall 
certify under penalty of perjury that such information is true and 
correct. The administrator shall keep all data obtained from 
contributors and TRS providers confidential and shall not disclose such 
data in company-specific form unless directed to do so by the 
Commission. Subject to any restrictions imposed by the Chief of the 
Consumer and Governmental Affairs Bureau, the TRS Fund administrator may 
share data obtained from carriers with the administrators of the 
universal support mechanisms (see Sec. 54.701 of this chapter), the 
North American Numbering Plan administration cost recovery (see Sec. 
52.16 of this chapter), and the long-term local number portability cost 
recovery (see Sec. 52.32 of this chapter). The TRS Fund administrator 
shall keep confidential all data obtained from other administrators. The 
administrator shall not use such data except for purposes of 
administering the TRS Fund, calculating the regulatory fees of 
interstate common carriers, and aggregating such fee payments for 
submission to the Commission. The Commission shall have access to all 
data reported to the administrator, and authority to audit TRS 
providers. Contributors may make requests for Commission nondisclosure 
of company-specific revenue information under Sec. 0.459 of this 
chapter by so indicating on the Telecommunications Reporting Worksheet 
at the time that the subject data are submitted. The Commission shall 
make all decisions regarding nondisclosure of company-specific 
information.
    (J) [Reserved]
    (K) All parties providing services or contributions or receiving 
payments under this section are subject to the enforcement provisions 
specified in the Communications Act, the Americans with Disabilities 
Act, and the Commission's rules.
    (L) Procedures for the suspension/withholding of payment. (1) The 
Fund administrator will continue the current practice of reviewing 
monthly requests for compensation of TRS minutes of use within two 
months after they are filed with the Fund administrator.
    (2) If the Fund administrator in consultation with the Commission, 
or the Commission on its own accord, determines that payments for 
certain minutes should be withheld, a TRS provider will be notified 
within two months from the date for the request for compensation was 
filed, as to why its claim for compensation has been withheld in whole 
or in part. TRS providers then will be given two additional months from 
the date of notification to provide additional justification for payment 
of such minutes of use. Such justification should be sufficiently 
detailed to provide the Fund administrator and the Commission the 
information needed to evaluate whether the minutes of use in dispute are 
compensable. If a TRS provider does not respond, or does not respond 
with sufficiently detailed information within two months after 
notification that payment for minutes of use is being withheld, payment 
for the minutes of use in dispute will be denied permanently.
    (3) If, the TRS provider submits additional justification for 
payment of the minutes of use in dispute within two months after being 
notified that its initial justification was insufficient, the Fund 
administrator or the Commission will review such additional 
justification documentation, and may ask further questions or conduct 
further investigation to evaluate whether to pay the TRS provider for 
the minutes of use in dispute, within eight months after submission of 
such additional justification.
    (4) If the provider meets its burden to establish that the minutes 
in question are compensable under the Commission's rules, the Fund 
administrator will compensate the provider for such minutes of use. Any 
payment by the Commission will not preclude any future action by either 
the Commission or the U.S. Department of Justice to

[[Page 325]]

recover past payments (regardless of whether the payment was the subject 
of withholding) if it is determined at any time that such payment was 
for minutes billed to the Commission in violation of the Commission's 
rules or any other civil or criminal law.
    (5) If the Commission determines that the provider has not met its 
burden to demonstrate that the minutes of use in dispute are compensable 
under the Commission's rules, payment will be permanently denied. The 
Fund administrator or the Commission will notify the provider of this 
decision within one year of the initial request for payment.
    (M) Whistleblower protections. Providers shall not take any reprisal 
in the form of a personnel action against any current or former employee 
or contractor who discloses to a designated manager of the provider, the 
Commission, the TRS Fund administrator or to any Federal or state law 
enforcement entity, any information that the reporting person reasonably 
believes evidences known or suspected violations of the Communications 
Act or TRS regulations, or any other activity that the reporting person 
reasonably believes constitutes waste, fraud, or abuse, or that 
otherwise could result in the improper billing of minutes of use to the 
TRS Fund and discloses that information to a designated manager of the 
provider, the Commission, the TRS Fund administrator or to any Federal 
or state law enforcement entity. Providers shall provide an accurate and 
complete description of these TRS whistleblower protections, including 
the right to notify the FCC's Office of Inspector General or its 
Enforcement Bureau, to all employees and contractors, in writing. 
Providers that already disseminate their internal business policies to 
its employees in writing (e.g. in employee handbooks, policies and 
procedures manuals, or bulletin board postings--either online or in hard 
copy) must include an accurate and complete description of these TRS 
whistleblower protections in those written materials.
    (N) In addition to the provisions set forth above, VRS providers 
shall be subject to the following provisions:
    (1) Eligibility for reimbursement from the TRS Fund. (i) Only an 
eligible VRS provider, as defined in paragraph (c)(5)(iii)(F) of this 
section, may hold itself out to the general public as providing VRS.
    (ii) VRS service must be offered under the name by which the 
eligible VRS provider offering such service became certified and in a 
manner that clearly identifies that provider of the service. Where a TRS 
provider also utilizes sub-brands to identify its VRS, each sub-brand 
must clearly identify the eligible VRS provider. Providers must route 
all VRS calls through a single URL address used for each name or sub-
brand used.
    (iii) An eligible VRS provider may not contract with or otherwise 
authorize any third party to provide interpretation services or call 
center functions (including call distribution, call routing, call setup, 
mapping, call features, billing, and registration) on its behalf, unless 
that authorized third party also is an eligible provider, or the 
eligible VRS provider is a VRS CA service provider and the authorized 
third party is the provider of the Neutral Video Communication Service 
Platform, except that a VRS CA service provider may not contract with or 
otherwise authorize the provider of the Neutral Video Communication 
Service Platform to perform billing on its behalf.
    (iv) To the extent that an eligible VRS provider contracts with or 
otherwise authorizes a third party to provide any other services or 
functions related to the provision of VRS other than interpretation 
services or call center functions, that third party must not hold itself 
out as a provider of VRS, and must clearly identify the eligible VRS 
provider to the public. To the extent an eligible VRS provider contracts 
with or authorizes a third party to provide any services or functions 
related to marketing or outreach, and such services utilize VRS, those 
VRS minutes are not compensable on a per minute basis from the TRS fund.
    (v) All third-party contracts or agreements entered into by an 
eligible provider must be in writing. Copies of such agreements shall be 
made available to the Commission and to the TRS Fund administrator upon 
request.

[[Page 326]]

    (2) Call center reports. VRS providers shall file a written report 
with the Commission and the TRS Fund administrator, on April 1st and 
October 1st of each year for each call center that handles VRS calls 
that the provider owns or controls, including centers located outside of 
the United States, that includes:
    (i) The complete street address of the center;
    (ii) The number of individual CAs and CA managers; and
    (iii) The name and contact information (phone number and e-mail 
address) of the manager(s) at the center. VRS providers shall also file 
written notification with the Commission and the TRS Fund administrator 
of any change in a center's location, including the opening, closing, or 
relocation of any center, at least 30 days prior to any such change.
    (3) Compensation of CAs. VRS providers may not compensate, give a 
preferential work schedule or otherwise benefit a CA in any manner that 
is based upon the number of VRS minutes or calls that the CA relays, 
either individually or as part of a group.
    (4) Remote training session calls. VRS calls to a remote training 
session or a comparable activity will not be compensable from the TRS 
Fund when the provider submitting minutes for such a call has been 
involved, in any manner, with such a training session. Such prohibited 
involvement includes training programs or comparable activities in which 
the provider or any affiliate or related party thereto, including but 
not limited to its subcontractors, partners, employees or sponsoring 
organizations or entities, has any role in arranging, scheduling, 
sponsoring, hosting, conducting or promoting such programs or 
activities.
    (6) Complaints--(i) Referral of complaint. If a complaint to the 
Commission alleges a violation of this subpart with respect to 
intrastate TRS within a state and certification of the program of such 
state under Sec. 64.606 is in effect, the Commission shall refer such 
complaint to such state expeditiously.
    (ii) Intrastate complaints shall be resolved by the state within 180 
days after the complaint is first filed with a state entity, regardless 
of whether it is filed with the state relay administrator, a state PUC, 
the relay provider, or with any other state entity.
    (iii) Jurisdiction of Commission. After referring a complaint to a 
state entity under paragraph (c)(6)(i) of this section, or if a 
complaint is filed directly with a state entity, the Commission shall 
exercise jurisdiction over such complaint only if:
    (A) Final action under such state program has not been taken within:
    (1) 180 days after the complaint is filed with such state entity; or
    (2) A shorter period as prescribed by the regulations of such state; 
or
    (B) The Commission determines that such state program is no longer 
qualified for certification under Sec. 64.606.
    (iv) The Commission shall resolve within 180 days after the 
complaint is filed with the Commission any interstate TRS complaint 
alleging a violation of section 225 of the Act or any complaint 
involving intrastate relay services in states without a certified 
program. The Commission shall resolve intrastate complaints over which 
it exercises jurisdiction under paragraph (c)(6)(iii) of this section 
within 180 days.
    (v) Complaint procedures. Complaints against TRS providers for 
alleged violations of this subpart may be either informal or formal.
    (A) Informal complaints--(1) Form. An informal complaint may be 
transmitted to the Consumer & Governmental Affairs Bureau by any 
reasonable means, such as letter, facsimile transmission, telephone 
(voice/TRS/TTY), Internet e-mail, or some other method that would best 
accommodate a complainant's hearing or speech disability.
    (2) Content. An informal complaint shall include the name and 
address of the complainant; the name and address of the TRS provider 
against whom the complaint is made; a statement of facts supporting the 
complainant's allegation that the TRS provided it has violated or is 
violating section 225 of the Act and/or requirements under the 
Commission's rules; the specific relief or satisfaction sought by the 
complainant; and the complainant's preferred format or method of 
response to the complaint by the Commission and the

[[Page 327]]

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

[[Page 328]]

to narrow the issues. Matters alleged as affirmative defenses shall be 
separately stated and numbered. Any defendant failing to file and serve 
an answer within the time and in the manner prescribed may be deemed in 
default.
    (H) Replies to answers or amended answers. Within 10 days after 
service of an answer or an amended answer, a complainant may file and 
serve a reply which shall be responsive to matters contained in such 
answer or amended answer and shall not contain new matter. Failure to 
reply will not be deemed an admission of any allegation contained in 
such answer or amended answer.
    (I) Defective pleadings. Any pleading filed in a complaint 
proceeding that is not in substantial conformity with the requirements 
of the applicable rules in this subpart may be dismissed.
    (7) Treatment of TRS customer information. Beginning on July 21, 
2000, all future contracts between the TRS administrator and the TRS 
vendor shall provide for the transfer of TRS customer profile data from 
the outgoing TRS vendor to the incoming TRS vendor. Such data must be 
disclosed in usable form at least 60 days prior to the provider's last 
day of service provision. Such data may not be used for any purpose 
other than to connect the TRS user with the called parties desired by 
that TRS user. Such information shall not be sold, distributed, shared 
or revealed in any other way by the relay center or its employees, 
unless compelled to do so by lawful order.
    (8) Incentives for use of IP CTS. (i) An IP CTS provider shall not 
offer or provide to any person or entity that registers to use IP CTS 
any form of direct or indirect incentives, financial or otherwise, to 
register for or use IP CTS.
    (ii) An IP CTS provider shall not offer or provide to a hearing 
health professional any direct or indirect incentives, financial or 
otherwise, that are tied to a consumer's decision to register for or use 
IP CTS. Where an IP CTS provider offers or provides IP CTS equipment, 
directly or indirectly, to a hearing health professional, and such 
professional makes or has the opportunity to make a profit on the sale 
of the equipment to consumers, such IP CTS provider shall be deemed to 
be offering or providing a form of incentive tied to a consumer's 
decision to register for or use IP CTS.
    (iii) Joint marketing arrangements between IP CTS providers and 
hearing health professionals shall be prohibited.
    (iv) For the purpose of this paragraph (c)(8), a hearing health 
professional is any medical or non-medical professional who advises 
consumers with regard to hearing disabilities.
    (v) Any IP CTS provider that does not comply with this paragraph 
(c)(8) shall be ineligible for compensation for such IP CTS from the TRS 
Fund.
    (9) IP CTS registration and certification requirements. (i) IP CTS 
providers must first obtain the following registration information from 
each consumer prior to requesting compensation from the TRS Fund for 
service provided to the consumer. The consumer's full name, date of 
birth, last four digits of the consumer's social security number, 
address and telephone number.
    (ii) Self-certification prior to demarcation date. IP CTS providers, 
in order to be eligible to receive compensation from the TRS Fund for 
providing IP CTS, also must first obtain a written certification from 
the consumer, and if obtained prior to the demarcation date, such 
written certification shall attest that the consumer needs IP CTS to 
communicate in a manner that is functionally equivalent to the ability 
of a hearing individual to communicate using voice communication 
services. The certification must include the consumer's certification 
that:
    (A) The consumer has a hearing loss that necessitates IP CTS to 
communicate in a manner that is functionally equivalent to communication 
by conventional voice telephone users;
    (B) The consumer understands that the captioning service is provided 
by a live communications assistant; and
    (C) The consumer understands that the cost of IP CTS is funded by 
the TRS Fund.
    (iii) Self-certification on or after demarcation date. IP CTS 
providers must also first obtain from each consumer prior to requesting 
compensation from the TRS Fund for the consumer, a written certification 
from the consumer, and if

[[Page 329]]

obtained on or after the demarcation date, such certification shall 
state that:
    (A) The consumer has a hearing loss that necessitates use of 
captioned telephone service;
    (B) The consumer understands that the captioning on captioned 
telephone service is provided by a live communications assistant who 
listens to the other party on the line and provides the text on the 
captioned phone;
    (C) The consumer understands that the cost of captioning each 
Internet protocol captioned telephone call is funded through a federal 
program; and
    (D) The consumer will not permit, to the best of the consumer's 
ability, persons who have not registered to use Internet protocol 
captioned telephone service to make captioned telephone calls on the 
consumer's registered IP captioned telephone service or device.
    (iv) The certification required by paragraphs (c)(9)(ii) and (iii) 
of this section must be made on a form separate from any other agreement 
or form, and must include a separate consumer signature specific to the 
certification. Beginning on the demarcation date, such certification 
shall be made under penalty of perjury. For purposes of this section, an 
electronic signature, defined by the Electronic Signatures in Global and 
National Commerce Act, 15 U.S.C. 7001 et seq., 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.
    (v) Third-party certification prior to demarcation date. Where IP 
CTS equipment is or has been obtained by a consumer from an IP CTS 
provider, directly or indirectly, at no charge or for less than $75 and 
the consumer was registered in accordance with the requirements of 
paragraph (c)(9) of this section prior to the demarcation date, the IP 
CTS provider must also obtain from each consumer prior to requesting 
compensation from the TRS Fund for the consumer, written certification 
provided and signed by an independent third-party professional, except 
as provided in paragraph (c)(9)(xi) of this section.
    (vi) To comply with paragraph (c)(9)(v) of this section, the 
independent professional providing certification must:
    (A) Be qualified to evaluate an individual's hearing loss in 
accordance with applicable professional standards, and may include, but 
are not limited to, community-based social service providers, hearing 
related professionals, vocational rehabilitation counselors, 
occupational therapists, social workers, educators, audiologists, speech 
pathologists, hearing instrument specialists, and doctors, nurses and 
other medical or health professionals;
    (B) Provide his or her name, title, and contact information, 
including address, telephone number, and email address; and
    (C) Certify in writing that the IP CTS user is an individual with 
hearing loss who needs IP CTS to communicate in a manner that is 
functionally equivalent to telephone service experienced by individuals 
without hearing disabilities.
    (vii) Third-party certification on or after demarcation date. Where 
IP CTS equipment is or has been obtained by a consumer from an IP CTS 
provider, directly or indirectly, at no charge or for less than $75, the 
consumer (in cases where the equipment was obtained directly from the IP 
CTS provider) has not subsequently paid $75 to the IP CTS provider for 
the equipment prior to the date the consumer is registered to use IP 
CTS, and the consumer is registered in accordance with the requirements 
of this paragraph (c)(9) on or after the demarcation date, the IP CTS 
provider must also, prior to requesting compensation from the TRS Fund 
for service to the consumer, obtain from each consumer written 
certification provided and signed by an independent third-party 
professional, except as provided in paragraph (c)(9)(xi) of this 
section.
    Note to paragraphs (c)(9)(ii), (iii), (iv), (v) and (vii): The date 
demarking which certification obligations apply to which consumers shall 
be the date when notice of OMB approval of the amendments to the 
registration and certification requirements is published. The FCC will 
publish a notice of the effective date along with a corrective amendment 
to specify the demarcation date.

[[Page 330]]

    (viii) To comply with paragraph (c)(9)(vii) of this section, the 
independent third-party professional providing certification must:
    (A) Be qualified to evaluate an individual's hearing loss in 
accordance with applicable professional standards, and must be either a 
physician, audiologist, or other hearing related professional. Such 
professional shall not have been referred to the IP CTS user, either 
directly or indirectly, by any provider of TRS or any officer, director, 
partner, employee, agent, subcontractor, or sponsoring organization or 
entity (collectively ``affiliate'') of any TRS provider. Nor shall the 
third party professional making such certification have any business, 
family or social relationship with the TRS provider or any affiliate of 
the TRS provider from which the consumer is receiving or will receive 
service.
    (B) Provide his or her name, title, and contact information, 
including address, telephone number, and email address.
    (C) Certify in writing, under penalty of perjury, that the IP CTS 
user is an individual with hearing loss that necessitates use of 
captioned telephone service and that the third party professional 
understands that the captioning on captioned telephone service is 
provided by a live communications assistant and is funded through a 
federal program.
    (ix) In instances where the consumer has obtained IP CTS equipment 
from a local, state, or federal governmental program, the consumer may 
present documentation to the IP CTS provider demonstrating that the 
equipment was obtained through one of these programs, in lieu of 
providing an independent, third-party certification under paragraphs 
(c)(9)(v) and (vii) of this section.
    (x) Each IP CTS provider shall maintain records of any registration 
and certification information for a period of at least five years after 
the consumer ceases to obtain service from the provider and shall 
maintain the confidentiality of such registration and certification 
information, and may not disclose such registration and certification 
information or the content of such registration and certification 
information except as required by law or regulation.
    (xi) IP CTS providers must obtain registration information and 
certification of hearing loss from all IP CTS users who began receiving 
service prior to March 7, 2013. Notwithstanding any other provision of 
paragraph (c)(9) of this section, IP CTS providers shall be compensated 
for compensable minutes of use generated prior to the registration 
deadline by any such users, but shall not receive compensation for 
minutes of IP CTS use generated on or after the registration deadline by 
any IP CTS user who has not been registered.
    Note to paragraph (c)(9)(xi): The deadline for compliance with the 
requirement for IP CTS providers to register consumers who began service 
prior to March 7, 2013 shall be 180 days after OMB approval has been 
obtained, and IP CTS providers shall be permitted to receive 
compensation for minutes of use generated by such consumers prior to the 
registration deadline. The FCC will publish a notice of the effective 
date along with a corrective amendment to specify the deadline for 
compliance.
    (10) IP CTS default settings. (i) IP CTS providers must ensure that 
their equipment and software applications used in conjunction with their 
service have a default setting of captions off, so that all IP CTS users 
must affirmatively turn on captioning for each telephone call initiated 
or received before captioning is provided.
    (ii) Each IP CTS provider shall ensure that each IP CTS telephone 
they distribute, directly or indirectly, shall include a button, icon, 
or other comparable feature that is easily operable and requires only 
one step for the consumer to turn on captioning.
    (iii) For software applications on mobile phones, laptops, tablets, 
computers or other similar devices, the requirements of this paragraph 
(c)(10) are satisfied so long as:
    (A) Consumers must log in to access the IP CTS software feature with 
a unique ID and password, and
    (B) The default setting switches to captions on only while the 
consumer is logged in, and does not remain on indefinitely.
    (iv) Hardship exception. If a consumer has a cognitive or physical 
disability that significantly impedes the ability

[[Page 331]]

of the consumer to turn on captioning at the start of each call, the IP 
CTS provider may set that consumer's IP CTS telephone to have a default 
of captions on, provided that the consumer submits, in addition to the 
self-certification required under paragraphs (c)(9)(ii) or (iii) of this 
section, the following to the IP CTS provider:
    (A) A self-certification, dated and made under penalty of perjury, 
that the requirement to turn on captioning at the start of each call 
significantly impedes the consumer's ability to make use of captioned 
telephone service, provided that such certification shall be made by the 
consumer's spouse or legal guardian or a person with power of attorney 
where the consumer is not competent to provide the required self-
certification; and
    (B) A certification from a licensed, independent, third party 
physician in good standing, dated and made under penalty of perjury, 
that the consumer has a physical or mental disability or functional 
limitation that significantly impedes the consumer's ability to activate 
captioning at the start of each call, including a brief description of 
the basis for such statement. Such physician shall be the consumer's 
primary care physician or a physician whose specialty is such that the 
physician is qualified to make such certification and shall provide his 
or her name, title, area of specialty or expertise, and contact 
information, including address, telephone number, and email address on 
such certification. Providers shall not accept a certification from any 
physician referred to the IP CTS user, either directly or indirectly, by 
any provider of TRS or any officer, director, partner, employee, agent, 
subcontractor, or sponsoring organization or entity (collectively 
``affiliate'') of any TRS provider. Nor shall the physician making such 
certification have any business, family or social relationship with and 
shall not have received any payment, referral, or other thing of value 
from the TRS provider or any affiliate of the TRS provider from which 
the consumer is receiving service.
    (C) Each IP CTS provider shall maintain detailed records of all 
consumers, who, because of a showing of hardship under this section, 
have been permitted to receive IP CTS equipment with a setting of 
default captions on, including the dated and signed consumer and 
physician certifications submitted by each such consumer pursuant to 
this paragraph (c)(10)(iv), for a period of at least five years after 
the consumer ceases to obtain service from the provider. Each IP CTS 
provider shall maintain the confidentiality of such certification 
information, and may not disclose such certification information or the 
content of such certification information except as required by law or 
regulation.
    (D) Each IP CTS provider shall submit, on a monthly basis and 
subject to confidentiality requirements, a report to the Commission on 
the consumers who have received a hardship exception pursuant to this 
paragraph (c)(10)(iv), which shall include a list of such newly excepted 
individuals (with names redacted), including the dates on which each 
individual registered for IP CTS with the provider and was provided with 
IP CTS equipment with a default setting of captions on, the area of 
specialty or expertise of the certifying physician accompanying each 
hardship certification, and the basis for granting each hardship 
exception.
    (v) 911 Calling. Each IP CTS provider may turn captions on 
automatically for 911 calls so long as the provider remains in 
compliance with the provisions of this paragraph (c)(10) for all other 
types of calls.
    (11) IP CTS Equipment. (i) Any IP CTS provider, including its 
officers, directors, partners, employees, agents, subcontractors, and 
sponsoring organizations and entities, that provides equipment, software 
or applications to consumers, directly or indirectly, at no charge or 
for less than $75, whether through giveaway, sale, loan, or otherwise, 
on or after September 30, 2013 shall be ineligible to receive 
compensation for minutes of IP CTS use generated by consumers using such 
equipment. An IP CTS provider may provide software or applications at no 
charge or for less than $75 to a consumer who has already paid a minimum 
of $75 for equipment, software or applications to that IP CTS provider 
without affecting

[[Page 332]]

the IP CTS provider's eligibility to receive compensation for minutes of 
IP CTS use generated by that consumer. This paragraph (c)(11)(i) of this 
section shall not apply in instances where the consumer has obtained IP 
CTS equipment from a local, state, or federal governmental program.
    (ii) No person shall use IP CTS equipment or software with the 
captioning on, unless:
    (A) Such person is registered to use IP CTS pursuant to paragraph 
(c)(9) of this section; or
    (B) Such person was an existing IP CTS user as of March 7, 2013, and 
either paragraph (c)(9)(xi) of this section is not yet in effect or the 
registration deadline in paragraph (c)(9)(xi) of this section has not 
yet passed.
    (iii) IP CTS providers shall ensure that any newly distributed IP 
CTS equipment has a label on its face in a conspicuous location with the 
following language in a clearly legible font: ``FEDERAL LAW PROHIBITS 
ANYONE BUT REGISTERED USERS WITH HEARING LOSS FROM USING THIS DEVICE 
WITH THE CAPTIONS ON.'' For IP CTS equipment already distributed to 
consumers by any IP CTS provider as of the effective date of this 
paragraph, such provider shall distribute to consumers equipment labels 
with the same language as mandated by this paragraph for newly 
distributed equipment, along with clear and specific instructions 
directing the consumer to attach such labels to the face of their IP CTS 
equipment in a conspicuous location. For software applications on mobile 
phones, laptops, tablets, computers or other similar devices, IP CTS 
providers shall ensure that, each time the consumer logs into the 
application, the notification language required by this paragraph 
appears in a conspicuous location on the device screen immediately after 
log-in.
    Note to paragraph (c)(11)(iii): The deadline for compliance with the 
requirement for IP CTS providers to distribute to consumers equipment 
labels along with instructions for applying the labels to equipment 
already distributed to consumers shall be thirty days after OMB approval 
has been obtained. The FCC will publish a notice of the effective date 
along with a corrective amendment to specify the deadline for 
compliance.
    (iv) IP CTS providers shall maintain, with each consumer's 
registration records, records describing any IP CTS equipment provided, 
directly or indirectly, to such consumer, stating the amount paid for 
such equipment, and stating whether the label required by paragraph 
(c)(11)(iii) of this section was affixed to such equipment prior to its 
provision to the consumer. For consumers to whom IP CTS equipment was 
provided directly or indirectly prior to the effective date of this 
paragraph (c)(11), such records shall state whether and when the label 
required by paragraph (c)(11)(iii) of this section was distributed to 
such consumer. Such records shall be maintained for a minimum period of 
five years after the consumer ceases to obtain service from the 
provider.
    (12) Discrimination and preferences. A VRS provider shall not:
    (i) Directly or indirectly, by any means or device, engage in any 
unjust or unreasonable discrimination related to practices, facilities, 
or services for or in connection with like relay service,
    (ii) Engage in or give any undue or unreasonable preference or 
advantage to any particular person, class of persons, or locality, or
    (ii) Subject any particular person, class of persons, or locality to 
any undue or unreasonable prejudice or disadvantage.
    (13) Unauthorized and unnecessary use of VRS. A VRS provider shall 
not engage in any practice that causes or encourages, or that the 
provider knows or has reason to know will cause or encourage:
    (i) False or unverified claims for TRS Fund compensation,
    (ii) Unauthorized use of VRS,
    (iii) The making of VRS calls that would not otherwise be made, or
    (iv) The use of VRS by persons who do not need the service in order 
to communicate in a functionally equivalent manner. A VRS provider shall 
not seek payment from the TRS Fund for any minutes of service it knows 
or has reason to know are resulting from such practices. Any VRS 
provider that becomes aware of such practices being or having been 
committed by any person shall as soon as practicable report such

[[Page 333]]

practices to the Commission or the TRS Fund administrator.
    (d) Other standards. The applicable requirements of Sec. Sec. 
64.605, 64.611, 64.615, 64.617, 64.621, 64.631, 64.632, 64.5105, 
64.5107, 64.5108, 64.5109, and 64.5110 of this part are to be considered 
mandatory minimum standards.

[65 FR 38436, June 21, 2000]

    Editorial Note: For Federal Register citations affecting Sec. 
64.604, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.fdsys.gov.

    Effective Date Notes: 1. At 78 FR 40607, July 5 2013, Sec. 64.604 
was amended by adding paragraph (c)(13). 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.
    2. At 78 FR 53691, Aug. 30, 2013, Sec. 64.604 was amended by 
revising paragraphs (c)(9), and (c)(10)(iv) and adding (c)(11)(iii), and 
(iv). 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.
    3. At 78 FR 49696, Aug. 15, 2013, Sec. 64.604 was amended by 
revising paragraph (a)(1)(v) and adding (a)(1)(viii) and (b)(7), 
effective Oct. 15, 2013. For the convenience of the user, the added and 
revised text is set forth as follows:



Sec. 64.604  Mandatory minimum standards.

                                * * * * *

    (a) * * *
    (1) * * *
    (v) CAs answering and placing a TTY-based TRS or VRS call shall stay 
with the call for a minimum of ten minutes. CAs answering and placing an 
STS call shall stay with the call for a minimum of twenty minutes. The 
minimum time period shall begin to run when the CA reaches the called 
party. The obligation of the CA to stay with the call shall terminate 
upon the earlier of:
    (A) The termination of the call by one of the parties to the call; 
or
    (B) The completion of the minimum time period.

                                * * * * *

    (viii) STS providers shall offer STS users the option to have their 
voices muted so that the other party to the call will hear only the CA 
and will not hear the STS user's voice.

                                * * * * *

    (b) * * *
    (7) STS 711 Calls. An STS provider shall, at a minimum, employ the 
same means of enabling an STS user to connect to a CA when dialing 711 
that the provider uses for all other forms of TRS. When a CA directly 
answers an incoming 711 call, the CA shall transfer the STS user to an 
STS CA without requiring the STS user to take any additional steps. When 
an interactive voice response (IVR) system answers an incoming 711 call, 
the IVR system shall allow for an STS user to connect directly to an STS 
CA using the same level of prompts as the IVR system uses for all other 
forms of TRS.

                                * * * * *



Sec. 64.605  Emergency calling requirements.

    (a) Additional emergency calling requirements applicable to 
internet-based TRS providers. (1) As of December 31, 2008, the 
requirements of paragraphs (a)(2)(i) and (a)(2)(iv) of this section 
shall not apply to providers of VRS and IP Relay to which Sec. 
64.605(b) applies.
    (2) Each provider of Internet-based TRS shall:
    (i) Accept and handle emergency calls and access, either directly or 
via a third party, a commercially available database that will allow the 
provider to determine an appropriate PSAP, designated statewide default 
answering point, or appropriate local emergency authority that 
corresponds to the caller's location, and to relay the call to that 
entity;
    (ii) Implement a system that ensures that the provider answers an 
incoming emergency call before other non-emergency calls (i.e., 
prioritize emergency calls and move them to the top of the queue);
    (iii) Request, at the beginning of each emergency call, the caller's 
name and location information, unless the Internet-based TRS provider 
already has, or has access to, a Registered Location for the caller;
    (iv) Deliver to the PSAP, designated statewide default answering 
point, or appropriate local emergency authority, at the outset of the 
outbound leg of an emergency call, at a minimum, the name of the relay 
user and location of the emergency, as well as the name of the relay 
provider, the CA's callback number, and the CA's identification number, 
thereby enabling the PSAP,

[[Page 334]]

designated statewide default answering point, or appropriate local 
emergency authority to re-establish contact with the CA in the event the 
call is disconnected;
    (v) In the event one or both legs of an emergency call are 
disconnected (i.e., either the call between the TRS user and the CA, or 
the outbound voice telephone call between the CA and the PSAP, 
designated statewide default answering point, or appropriate local 
emergency authority), immediately re-establish contact with the TRS user 
and/or the appropriate PSAP, designated statewide default answering 
point, or appropriate local emergency authority and resume handling the 
call; and
    (vi) Ensure that information obtained as a result of this section is 
limited to that needed to facilitate 911 services, is made available 
only to emergency call handlers and emergency response or law 
enforcement personnel, and is used for the sole purpose of ascertaining 
a user's location in an emergency situation or for other emergency or 
law enforcement purposes.
    (b) E911 Service for VRS and IP Relay--(1) Scope. The following 
requirements are only applicable to providers of VRS or IP Relay. 
Further, the following requirements apply only to 911 calls placed by 
registered users whose Registered Location is in a geographic area 
served by a Wireline E911 Network and is available to the provider 
handling the call.
    (2) E911 Service. As of December 31, 2008:
    (i) VRS or IP Relay providers must, as a condition of providing 
service to a user, provide that user with E911 service as described in 
this section;
    (ii) VRS or IP Relay providers must transmit all 911 calls, as well 
as ANI, the caller's Registered Location, the name of the VRS or IP 
Relay provider, and the CA's identification number for each call, to the 
PSAP, designated statewide default answering point, or appropriate local 
emergency authority that serves the caller's Registered Location and 
that has been designated for telecommunications carriers pursuant to 
Sec. 64.3001 of this chapter, provided that ``all 911 calls'' is 
defined as ``any communication initiated by an VRS or IP Relay user 
dialing 911'';
    (iii) All 911 calls must be routed through the use of ANI and, if 
necessary, pseudo-ANI, via the dedicated Wireline E911 Network; and
    (iv) The Registered Location, the name of the VRS or IP Relay 
provider, and the CA's identification number must be available to the 
appropriate PSAP, designated statewide default answering point, or 
appropriate local emergency authority from or through the appropriate 
automatic location information (ALI) database.
    (3) Service level obligation. Notwithstanding the provisions in 
paragraph (b)(2) of this section, if a PSAP, designated statewide 
default answering point, or appropriate local emergency authority is not 
capable of receiving and processing either ANI or location information, 
a VRS or IP Relay provider need not provide such ANI or location 
information; however, nothing in this paragraph affects the obligation 
under paragraph (c) of this section of a VRS or IP Relay provider to 
transmit via the Wireline E911 Network all 911 calls to the PSAP, 
designated statewide default answering point, or appropriate local 
emergency authority that serves the caller's Registered Location and 
that has been designated for telecommunications carriers pursuant to 
Sec. 64.3001 of this chapter.
    (4) Registered location requirement. As of December 31, 2008, VRS 
and IP Relay providers must:
    (i) Obtain from each Registered Internet-based TRS User, prior to 
the initiation of service, the physical location at which the service 
will first be utilized; and
    (ii) If the VRS or IP Relay is capable of being used from more than 
one location, provide their registered Internet-based TRS users one or 
more methods of updating their Registered Location, including at least 
one option that requires use only of the iTRS access technology 
necessary to access the VRS or IP Relay. Any method utilized must allow 
a registered Internet-based TRS user to update the Registered Location 
at will and in a timely manner.

[73 FR 41294, July 18, 2008, as amended at 73 FR 79696, Dec. 30, 2008; 
78 FR 40608, July 5, 2013]

[[Page 335]]



Sec. 64.606  Internet-based TRS provider and TRS program certification.

    (a) Documentation--(1) Certified state program. Any state, through 
its office of the governor or other delegated executive office empowered 
to provide TRS, desiring to establish a state program under this section 
shall submit, not later than October 1, 1992, documentation to the 
Commission addressed to the Federal Communications Commission, Chief, 
Consumer & Governmental Affairs Bureau, TRS Certification Program, 
Washington, DC 20554, and captioned ``TRS State Certification 
Application.'' All documentation shall be submitted in narrative form, 
shall clearly describe the state program for implementing intrastate 
TRS, and the procedures and remedies for enforcing any requirements 
imposed by the state program. The Commission shall give public notice of 
states filing for certification including notification in the Federal 
Register.
    (2) Internet-based TRS provider. Any entity desiring to provide 
Internet-based TRS and to receive compensation from the Interstate TRS 
Fund, shall submit documentation to the Commission addressed to the 
Federal Communications Commission, Chief, Consumer and Governmental 
Affairs Bureau, TRS Certification Program, Washington, DC 20554, and 
captioned ``Internet-based TRS Certification Application.'' The 
documentation shall include, in narrative form:
    (i) A description of the forms of Internet-based TRS to be provided 
(i.e., VRS, IP Relay, and/or IP captioned telephone relay service);
    (ii) A detailed description of how the applicant will meet all non-
waived mandatory minimum standards applicable to each form of TRS 
offered, including documentary and other evidence, and in the case of 
VRS, such documentary and other evidence shall demonstrate that the 
applicant leases, licenses or has acquired its own facilities and 
operates such facilities associated with TRS call centers and employs 
communications assistants, on a full or part-time basis, to staff such 
call centers at the date of the application. Such evidence shall 
include, but not be limited to:
    (A) In the case of VRS applicants or providers,
    (1) Operating five or fewer call centers within the United States, a 
copy of each deed or lease for each call center operated by the 
applicant within the United States;
    (2) Operating more than five call centers within the United States, 
a copy of each deed or lease for a representative sampling (taking into 
account size (by number of communications assistants) and location) of 
five call centers operated by the applicant within the United States, 
together with a list of all other call centers that they operate that 
includes the information required under Sec. 64.604(c)(5)(iii)(N)(2);
    (3) Operating call centers outside of the United States, a copy of 
each deed or lease for each call center operated by the applicant 
outside of the United States;
    (4) A description of the technology and equipment used to support 
their call center functions--including, but not limited to, automatic 
call distribution, routing, call setup, mapping, call features, billing 
for compensation from the TRS Fund, and registration--and for each core 
function of each call center for which the applicant must provide a copy 
of technology and equipment proofs of purchase, leases or license 
agreements in accordance with paragraphs (a)(2)(ii)(A)(5) through (7) of 
this section, a statement whether such technology and equipment is 
owned, leased or licensed (and from whom if leased or licensed);
    (5) Operating five or fewer call centers within the United States, a 
copy of each proof of purchase, lease or license agreement for all 
technology and equipment used to support their call center functions for 
each call center operated by the applicant within the United States;
    (6) Operating more than five call centers within the United States, 
a copy of each proof of purchase, lease or license agreement for 
technology and equipment used to support their call center functions for 
a representative sampling (taking into account size (by number of 
communications assistants) and location) of five call centers operated 
by the applicant within the United States; a copy of each proof of 
purchase, lease

[[Page 336]]

or license agreement for technology and equipment used to support their 
call center functions for all call centers operated by the applicant 
within the United States must be retained by the applicant for three 
years from the date of the application, and submitted to the Commission 
upon request;
    (7) Operating call centers outside of the United States, a copy of 
each proof of purchase, lease or license agreement for all technology 
and equipment used to support their call center functions for each call 
center operated by the applicant outside of the United States; and
    (8) A complete copy of each lease or license agreement for automatic 
call distribution.
    (B) For all applicants, a list of individuals or entities that hold 
at least a 10 percent equity interest in the applicant, have the power 
to vote 10 percent or more of the securities of the applicant, or 
exercise de jure or de facto control over the applicant, a description 
of the applicant's organizational structure, and the names of its 
executives, officers, members of its board of directors, general 
partners (in the case of a partnership), and managing members (in the 
case of a limited liability company);
    (C) For all applicants, a list of the number of applicant's full-
time and part-time employees involved in TRS operations, including and 
divided by the following positions: executives and officers; video phone 
installers (in the case of VRS), communications assistants, and persons 
involved in marketing and sponsorship activities;
    (D) For all applicants, copies of employment agreements for all of 
the provider's employees directly involved in TRS operations, 
executives, and communications assistants, and a list of names of 
employees directly involved in TRS operations, need not be submitted 
with the application, but must be retained by the applicant for five 
years from the date of application, and submitted to the Commission upon 
request; and
    (E) For all applicants, a list of all sponsorship arrangements 
relating to Internet-based TRS, including on that list a description of 
any associated written agreements; copies of all such arrangements and 
agreements must be retained by the applicant for three years from the 
date of the application, and submitted to the Commission upon request;
    (iii) A description of the provider's complaint procedures; and
    (iv) A statement that the provider will file annual compliance 
reports demonstrating continued compliance with these rules.
    (v) The chief executive officer (CEO), chief financial officer 
(CFO), or other senior executive of an applicant for Internet-based TRS 
certification under this section with first hand knowledge of the 
accuracy and completeness of the information provided, when submitting 
an application for certification under paragraph (a)(2) of this section, 
must certify as follows: I swear under penalty of perjury that I am ----
------------(name and title), ----------------an officer of the above-
named applicant, and that I have examined the foregoing submissions, and 
that all information required under the Commission's rules and orders 
has been provided and all statements of fact, as well as all 
documentation contained in this submission, are true, accurate, and 
complete.
    (F) In the case of applicants to provide IP CTS or IP CTS providers, 
a description of measures taken by such applicants or providers to 
ensure that they do not and will not request or collect payment from the 
TRS Fund for service to consumers who do not satisfy the registration 
and certification requirements in Sec. 64.604(c)(9), and an explanation 
of how these measures provide such assurance.
    (3) Assessment of internet-based TRS provider certification 
application. In order to assess the merits of a certification 
application submitted by an Internet-based TRS provider, the Commission 
may conduct one or more on-site visits of the applicant's premises, to 
which the applicant must consent.
    (4) For the purposes of paragraphs (a)(2)(ii)(A)(4) and 
(a)(2)(ii)(A)(6) of this section, VRS CA Service Providers shall, in 
their description of the technology and equipment used to support their 
call center functions, describe:

[[Page 337]]

    (i) How they provide connectivity to the Neutral Video Communication 
Service Platform; and
    (ii) How they internally route calls to CAs and then back to the 
Neutral Video Communication Service Platform. VRS CA service providers 
need not describe ACD platform functionality if it is not used for these 
purposes.
    (b)(1) Requirements for state certification. After review of state 
documentation, the Commission shall certify, by letter, or order, the 
state program if the Commission determines that the state certification 
documentation:
    (i) Establishes that the state program meets or exceeds all 
operational, technical, and functional minimum standards contained in 
Sec. 64.604;
    (ii) Establishes that the state program makes available adequate 
procedures and remedies for enforcing the requirements of the state 
program, including that it makes available to TRS users informational 
materials on state and Commission complaint procedures sufficient for 
users to know the proper procedures for filing complaints; and
    (iii) Where a state program exceeds the mandatory minimum standards 
contained in Sec. 64.604, the state establishes that its program in no 
way conflicts with federal law.
    (2) Requirements for Internet-based TRS Provider FCC certification. 
After review of certification documentation, the Commission shall 
certify, by Public Notice, that the Internet-based TRS provider is 
eligible for compensation from the Interstate TRS Fund if the Commission 
determines that the certification documentation:
    (i) Establishes that the provision of Internet-based TRS will meet 
or exceed all non-waived operational, technical, and functional minimum 
standards contained in Sec. 64.604;
    (ii) Establishes that the Internet-based TRS provider makes 
available adequate procedures and remedies for ensuring compliance with 
the requirements of this section and the mandatory minimum standards 
contained in Sec. 64.604, including that it makes available for TRS 
users informational materials on complaint procedures sufficient for 
users to know the proper procedures for filing complaints.
    (c)(1) State certification period. State certification shall remain 
in effect for five years. One year prior to expiration of certification, 
a state may apply for renewal of its certification by filing 
documentation as prescribed by paragraphs (a) and (b) of this section.
    (2) Internet-based TRS Provider FCC certification period. 
Certification granted under this section shall remain in effect for five 
years. An Internet-based TRS provider applying for renewal of its 
certification must file documentation with the Commission containing the 
information described in paragraph (a)(2) of this section at least 90 
days prior to expiration of its certification.
    (d) Method of funding. Except as provided in Sec. 64.604, the 
Commission shall not refuse to certify a state program based solely on 
the method such state will implement for funding intrastate TRS, but 
funding mechanisms, if labeled, shall be labeled in a manner that 
promote national understanding of TRS and do not offend the public.
    (e)(1) Suspension or revocation of state certification. The 
Commission may suspend or revoke such certification if, after notice and 
opportunity for hearing, the Commission determines that such 
certification is no longer warranted. In a state whose program has been 
suspended or revoked, the Commission shall take such steps as may be 
necessary, consistent with this subpart, to ensure continuity of TRS. 
The Commission may, on its own motion, require a certified state program 
to submit documentation demonstrating ongoing compliance with the 
Commission's minimum standards if, for example, the Commission receives 
evidence that a state program may not be in compliance with the minimum 
standards.
    (2) Suspension or revocation of Internet-based TRS Provider FCC 
certification. The Commission may suspend or revoke the certification of 
an Internet-based TRS provider if, after notice and opportunity for 
hearing, the Commission determines that such certification is no longer 
warranted. The Commission may, on its own motion, require a certified 
Internet-based TRS provider

[[Page 338]]

to submit documentation demonstrating ongoing compliance with the 
Commission's minimum standards if, for example, the Commission receives 
evidence that a certified Internet-based TRS provider may not be in 
compliance with the minimum standards.
    (f) Notification of substantive change. (1) States must notify the 
Commission of substantive changes in their TRS programs within 60 days 
of when they occur, and must certify that the state TRS program 
continues to meet federal minimum standards after implementing the 
substantive change.
    (2) VRS and IP Relay providers certified under this section must 
notify the Commission of substantive changes in their TRS programs, 
services, and features within 60 days of when such changes occur, and 
must certify that the interstate TRS provider continues to meet Federal 
minimum standards after implementing the substantive change. Substantive 
changes shall include, but not be limited to:
    (i) The use of new equipment or technologies to facilitate the 
manner in which relay services are provided;
    (ii) Providing services from a new facility not previously 
identified to the Commission or the Fund administrator; and
    (iii) Discontinuation of service from any facility.
    (g) Internet-based TRS providers certified under this section shall 
file with the Commission, on an annual basis, a report demonstrating 
that they are in compliance with Sec. 64.604.
    (1) Such reports must update the information required in paragraph 
(a)(2) of this section and include updated documentation and a summary 
of the updates, or certify that there are no changes to the information 
and documentation submitted with the application for certification, 
application for renewal of certification, or the most recent annual 
report, as applicable.
    (2) The chief executive officer (CEO), chief financial officer 
(CFO), or other senior executive of an Internet-based TRS provider under 
this section with first hand knowledge of the accuracy and completeness 
of the information provided, when submitting an annual report under 
paragraph (g) of this section, must, with each such submission, certify 
as follows:
    I swear under penalty of perjury that I am ---- (name and title), an 
officer of the above-named reporting entity, and that I have examined 
the foregoing submissions, and that all information required under the 
Commission's rules and orders has been provided and all statements of 
fact, as well as all documentation contained in this submission, are 
true, accurate, and complete.
    (3) Each VRS provider shall include within its annual report a 
compliance plan describing the provider's policies, procedures, and 
practices for complying with the requirements of Sec. 64.604(c)(13) of 
this subpart. Such compliance plan shall include, at a minimum:
    (i) Identification of any officer(s) or managerial employee(s) 
responsible for ensuring compliance with Sec. 64.604(c)(13) of this 
subpart;
    (ii) A description of any compliance training provided to the 
provider's officers, employees, and contractors;
    (iii) Identification of any telephone numbers, Web site addresses, 
or other mechanisms available to employees for reporting abuses;
    (iv) A description of any internal audit processes used to ensure 
the accuracy and completeness of minutes submitted to the TRS Fund 
administrator; and
    (v) A description of all policies and practices that the provider is 
following to prevent waste, fraud, and abuse of the TRS Fund. A provider 
that fails to file a compliance plan shall not be entitled to 
compensation for the provision of VRS during the period of 
noncompliance.
    (4) If, at any time, the Commission determines that a VRS provider's 
compliance plan currently on file is inadequate to prevent waste, fraud, 
and abuse of the TRS Fund, the Commission shall so notify the provider, 
shall explain the reasons the plan is inadequate, and shall direct the 
provider to correct the identified defects and submit an amended 
compliance plan reflecting such correction within a specified time 
period not to exceed 60 days. A provider that fails to comply with such 
directive shall not be entitled to compensation for the provision of VRS 
during the period of noncompliance. A submitted compliance plan shall 
not be

[[Page 339]]

prima facie evidence of the plan's adequacy; nor shall it be evidence 
that the provider has fulfilled its obligations under Sec. 
64.604(c)(13) of this subpart.
    (h) Unauthorized service interruptions. (1) Each certified VRS 
provider must provide Internet-based TRS without unauthorized voluntary 
service interruptions.
    (2) A VRS provider seeking to voluntarily interrupt service for a 
period of 30 minutes or more in duration must first obtain Commission 
authorization by submitting a written request to the Commission's 
Consumer and Governmental Affairs Bureau (CGB) at least 60 days prior to 
any planned service interruption, with detailed information of:
    (i) Its justification for such interruption;
    (ii) Its plan to notify customers about the impending interruption; 
and
    (iii) Its plans for resuming service, so as to minimize the impact 
of such disruption on consumers through a smooth transition of temporary 
service to another provider, and restoration of its service at the 
completion of such interruption. CGB will grant or deny such a request 
and provide a response to the provider at least 35 days prior to the 
proposed interruption, in order to afford an adequate period of 
notification to consumers. In evaluating such a request, CGB will 
consider such factors as the length of time of the proposed 
interruption, the reason for such interruption, the frequency with which 
such requests have been made by the provider in the past, the potential 
impact of the interruption on consumers, and the provider's plans for a 
smooth service restoration.
    (3) In the event of an unforeseen service interruption due to 
circumstances beyond an Internet-based TRS service provider's control, 
or in the event of a VRS provider's voluntary service interruption of 
less than 30 minutes in duration, the provider must submit a written 
notification to CGB within two business days of the commencement of the 
service interruption, with an explanation of when and how the provider 
has restored service or the provider's plan to do so imminently. In the 
event the provider has not restored service at the time such report is 
filed, the provider must submit a second report within two business days 
of the restoration of service with an explanation of when and how the 
provider has restored service. The provider also must provide 
notification of service outages covered by this paragraph to consumers 
on an accessible Web site, and that notification of service status must 
be updated in a timely manner.
    (4) A VRS provider that fails to obtain prior Commission 
authorization for a voluntary service interruption or fails to provide 
written notification after a voluntary service interruption of less than 
30 minutes in duration, or an Internet-based TRS provider that fails to 
provide written notification after the commencement of an unforeseen 
service interruption due to circumstances beyond the provider's control 
in accordance with this subsection, may be subject to revocation of 
certification, suspension of payment from the TRS Fund, or other 
enforcement action by the Commission, as appropriate.

[70 FR 76215, Dec. 23, 2005. Redesignated at 73 FR 21259, Apr. 21, 2008; 
76 FR 24402, May 2, 2011; 76 FR 47474, 47477, Aug. 5, 2011; 76 FR 67073, 
Oct. 31, 2011;77 FR 33662, June 7, 2012; 78 FR 40608, July 5, 2013; 78 
FR 53694, Aug. 30, 2013]

    Effective Date Notes: At 78 FR 40608, July 5, 2013, Sec. 64.606 was 
amended by adding paragraphs (a)(4), (g)(3), and (g)(4). 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.
    At 78 FR 53694, Aug. 30, 2013, Sec. 64.606 was amended by adding 
paragraph (a)(2)(ii)(F). 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. 64.607  Furnishing related customer premises equipment.

    (a) Any communications common carrier may provide, under tariff, 
customer premises equipment (other than hearing aid compatible 
telephones as defined in part 68 of this chapter, needed by persons with 
hearing, speech, vision or mobility disabilities. Such equipment may be 
provided to persons with those disabilities or to associations or 
institutions who require such equipment regularly to communicate

[[Page 340]]

with persons with disabilities. Examples of such equipment include, but 
are not limited to, artificial larynxes, bone conductor receivers and 
TTs.
    (b) Any carrier which provides telecommunications devices for 
persons with hearing and/or speech disabilities, whether or not pursuant 
to tariff, shall respond to any inquiry concerning:
    (1) The availability (including general price levels) of TTs using 
ASCII, Baudot, or both formats; and
    (2) The compatibility of any TT with other such devices and 
computers.

[56 FR 36731, Aug. 1, 1991, as amended at 72 FR 43560, Aug. 6, 2007; 73 
FR 21252, Apr. 21, 2008. Redesignated at 73 FR 21259, Apr. 21, 2008]



Sec. 64.608  Provision of hearing aid compatible telephones by exchange 

carriers.

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

[61 FR 42185, Aug. 14, 1996. Redesignated at 73 FR 21259, Apr. 21, 2008]



Sec. 64.609  Enforcement of related customer premises equipment rules.

    Enforcement of Sec. Sec. 64.607 and 64.608 is delegated to those 
state public utility or public service commissions which adopt those 
sections and provide for their enforcement. Subpart G--Furnishing of 
Enhanced Services and Customer-Premises Equipment by Communications 
Common Carriers

[56 FR 36731, Aug. 1, 1991. Redesignated and amended at 73 FR 21259, 
Apr. 21, 2008]



Sec. 64.610  Establishment of a National Deaf-Blind Equipment Distribution 

Program.

    (a) The National Deaf-Blind Equipment Distribution Program (NDBEDP) 
is established as a pilot program to distribute specialized customer 
premises equipment (CPE) used for telecommunications service, Internet 
access service, and advanced communications, including interexchange 
services and advanced telecommunications and information services, to 
low-income individuals who are deaf-blind. The duration of this pilot 
program will be two years, with a Commission option to extend such 
program for an additional year.
    (b) Certification to receive funding. For each state, the Commission 
will certify a single program as the sole authorized entity to 
participate in the NDBEDP and receive reimbursement for its program's 
activities from the Interstate Telecommunications Relay Service Fund 
(TRS Fund). Such entity will have full oversight and responsibility for 
distributing equipment and providing related services in that state, 
either directly or through collaboration, partnership, or contract with 
other individuals or entities in-state or out-of-state, including other 
NDBEDP certified programs.
    (1) Any state with an equipment distribution program (EDP) may have 
its EDP apply to the Commission for certification as the sole authorized 
entity for the state to participate in the NDBEDP and receive 
reimbursement for its activities from the TRS Fund.
    (2) Other public programs, including, but not limited to, vocational 
rehabilitation programs, assistive technology programs, or schools for 
the deaf, blind or deaf-blind; or private entities, including but not 
limited to, organizational affiliates, independent living centers, or 
private educational facilities, may apply to the Commission for 
certification as the sole authorized entity for the state to participate 
in the NDBEDP and receive reimbursement for its activities from the TRS 
Fund.
    (3) The Commission shall review applications and determine whether 
to grant certification based on the ability of a program to meet the 
following qualifications, either directly or in coordination with other 
programs or entities, as evidenced in the application and any 
supplemental materials, including letters of recommendation:
    (i) Expertise in the field of deaf-blindness, including familiarity 
with the culture and etiquette of people who are deaf-blind, to ensure 
that equipment distribution and the provision of related services occurs 
in a manner

[[Page 341]]

that is relevant and useful to consumers who are deaf-blind;
    (ii) The ability to communicate effectively with people who are 
deaf-blind (for training and other purposes), by among other things, 
using sign language, providing materials in Braille, ensuring that 
information made available online is accessible, and using other 
assistive technologies and methods to achieve effective communication;
    (iii) Staffing and facilities sufficient to administer the program, 
including the ability to distribute equipment and provide related 
services to eligible individuals throughout the state, including those 
in remote areas;
    (iv) Experience with the distribution of specialized CPE, especially 
to people who are deaf-blind;
    (v) Experience in how to train users on how to use the equipment and 
how to set up the equipment for its effective use; and
    (vi) Familiarity with the telecommunications, Internet access, and 
advanced communications services that will be used with the distributed 
equipment.
    (c) Definitions. For purposes of this section, the following 
definitions shall apply:
    (1) Equipment. Hardware, software, and applications, whether 
separate or in combination, mainstream or specialized, needed by an 
individual who is deaf-blind to achieve access to telecommunications 
service, Internet access service, and advanced communications, including 
interexchange services and advanced telecommunications and information 
services, as these services have been defined by the Communications Act.
    (2) Individual who is deaf-blind. (i) Any person:
    (A) Who has a central visual acuity of 20/200 or less in the better 
eye with corrective lenses, or a field defect such that the peripheral 
diameter of visual field subtends an angular distance no greater than 20 
degrees, or a progressive visual loss having a prognosis leading to one 
or both these conditions;
    (B) Who has a chronic hearing impairment so severe that most speech 
cannot be understood with optimum amplification, or a progressive 
hearing loss having a prognosis leading to this condition; and
    (C) For whom the combination of impairments described in clauses 
(c)(2)(i)(A) and (B) of this section cause extreme difficulty in 
attaining independence in daily life activities, achieving psychosocial 
adjustment, or obtaining a vocation.
    (ii) The definition in this paragraph also includes any individual 
who, despite the inability to be measured accurately for hearing and 
vision loss due to cognitive or behavioral constraints, or both, can be 
determined through functional and performance assessment to have severe 
hearing and visual disabilities that cause extreme difficulty in 
attaining independence in daily life activities, achieving psychosocial 
adjustment, or obtaining vocational objectives. An applicant's 
functional abilities with respect to using telecommunications, Internet 
access, and advanced communications services in various environments 
shall be considered when determining whether the individual is deaf-
blind under clauses (c)(2)(i)(B) and (C) of this section.
    (d) Eligibility criteria (1) Verification of disability. Individuals 
claiming eligibility under the NDBEDP must provide verification of 
disability from a professional with direct knowledge of the individual's 
disability.
    (i) Such professionals may include, but are not limited to, 
community-based service providers, vision or hearing related 
professionals, vocational rehabilitation counselors, educators, 
audiologists, speech pathologists, hearing instrument specialists, and 
medical or health professionals.
    (ii) Such professionals must attest, either to the best of their 
knowledge or under penalty of perjury, that the applicant is an 
individual who is deaf-blind (as defined in 47 CFR 64.610(b)). Such 
professionals may also include, in the attestation, information about 
the individual's functional abilities to use telecommunications, 
Internet access, and advanced communications services in various 
settings.
    (iii) Existing documentation that a person is deaf-blind, such as an 
individualized education program (IEP) or a statement from a public or 
private

[[Page 342]]

agency, such as a Social Security determination letter, may serve as 
verification of disability.
    (iv) The verification of disability must include the attesting 
professional's name, title, and contact information, including address, 
phone number, and e-mail address.
    (2) Verification of low income status. An individual claiming 
eligibility under the NDBEDP must provide verification that he or she 
has an income that does not exceed 400 percent of the Federal Poverty 
Guidelines as defined at 42 U.S.C. 9902(2) or that he or she is enrolled 
in a federal program with a lesser income eligibility requirement, such 
as the Federal Public Housing Assistance or Section 8; Supplemental 
Nutrition Assistance Program, formerly known as Food Stamps; Low Income 
Home Energy Assistance Program; Medicaid; National School Lunch 
Program's free lunch program; Supplemental Security Income; or Temporary 
Assistance for Needy Families. The NDBEDP Administrator may identify 
state or other federal programs with income eligibility thresholds that 
do not exceed 400 percent of the Federal Poverty Guidelines for 
determining income eligibility for participation in the NDBEDP. Where an 
applicant is not already enrolled in a qualifying low-income program, 
low-income eligibility may be verified by the certified program using 
appropriate and reasonable means.
    (3) Prohibition against requiring employment. No program certified 
under the NDBEDP may impose a requirement for eligibility in this 
program that an applicant be employed or actively seeking employment.
    (4) Access to communications services. A program certified under the 
NDBEDP may impose, as a program eligibility criterion, a requirement 
that telecommunications, Internet access, or advanced communications 
services are available for use by the applicant.
    (e) Equipment distribution and related services. (1) Each program 
certified under the NDBEDP must:
    (i) Distribute specialized CPE and provide related services needed 
to make telecommunications service, Internet access service, and 
advanced communications, including interexchange services or advanced 
telecommunications and information services, accessible to individuals 
who are deaf-blind;
    (ii) Obtain verification that NDBEDP applicants meet the definition 
of an individual who is deaf-blind contained in 47 CFR 64.610(c)(1) and 
the income eligibility requirements contained in 47 CFR 64.610(d)(2);
    (iii) When a recipient relocates to another state, permit transfer 
of the recipient's account and any control of the distributed equipment 
to the new state's certified program; (iv) Permit transfer of equipment 
from a prior state, by that state's NDBEDP certified program;
    [Reserved]
    (v) Prohibit recipients from transferring equipment received under 
the NDBEDP to another person through sale or otherwise;
    (vi) Conduct outreach, in accessible formats, to inform their state 
residents about the NDBEDP, which may include the development and 
maintenance of a program Web site;
    (vii) Engage an independent auditor to perform annual audits 
designed to detect and prevent fraud, waste, and abuse, and submit, as 
necessary, to audits arranged by the Commission, the Consumer and 
Governmental Affairs Bureau, the NDBEDP Administrator, or the TRS Fund 
Administrator for such purpose;
    (viii) Retain all records associated with the distribution of 
equipment and provision of related services under the NDBEDP for two 
years following the termination of the pilot program; and
    (ix) Comply with the reporting requirements contained in 47 CFR 
64.610(g).
    (2) Each program certified under the NDBEDP may not:
    (i) Impose restrictions on specific brands, models or types of 
communications technology that recipients may receive to access the 
communications services covered in this section;
    (ii) Disable or otherwise intentionally make it difficult for 
recipients to use certain capabilities, functions, or features on 
distributed equipment

[[Page 343]]

that are needed to access the communications services covered in this 
section, or direct manufacturers or vendors of specialized CPE to 
disable or make it difficult for recipients to use certain capabilities, 
functions, or features on distributed equipment that are needed to 
access the communications services covered in this section; or
    (iii) Accept any type of financial arrangement from equipment 
vendors that could incentivize the purchase of particular equipment.
    (f) Payments to NDBEDP certified programs. (1) Programs certified 
under the NDBEDP shall be reimbursed for the cost of equipment that has 
been distributed to eligible individuals and authorized related 
services, up to the state's funding allotment under this program as 
determined by the Commission or any entity authorized to act for the 
Commission on delegated authority.
    (2) Within 30 days after the end of each six-month period of the 
Fund Year, each program certified under the NDBEDP pilot must submit 
documentation that supports its claim for reimbursement of the 
reasonable costs of the following:
    (i) Equipment and related expenses, including maintenance, repairs, 
warranties, returns, refurbishing, upgrading, and replacing equipment 
distributed to consumers;
    (ii) Individual needs assessments;
    (iii) Installation of equipment and individualized consumer 
training;
    (iv) Maintenance of an inventory of equipment that can be loaned to 
the consumer during periods of equipment repair;
    (v) Outreach efforts to inform state residents about the NDBEDP; and
    (vi) Administration of the program, but not to exceed 15 percent of 
the total reimbursable costs for the distribution of equipment and 
related services permitted under the NDBEDP.
    (3) With each request for payment, the chief executive officer, 
chief financial officer, or other senior executive of the certified 
program, such as a manager or director, with first-hand knowledge of the 
accuracy and completeness of the claim in the request, must certify as 
follows:

    I swear under penalty of perjury that I am (name and title), an 
officer of the above-named reporting entity and that I have examined all 
cost data associated with equipment and related services for the claims 
submitted herein, and that all such data are true and an accurate 
statement of the affairs of the above-named certified program.

    (g) Reporting requirements. (1) Each program certified under the 
NDBEDP must submit the following data electronically to the Commission, 
as instructed by the NDBEDP Administrator, every six months, commencing 
with the start of the pilot program:
    (i) For each piece of equipment distributed, the identity of and 
contact information, including street and e-mail addresses, and phone 
number, for the individual receiving that equipment;
    (ii) For each piece of equipment distributed, the identity of and 
contact information, including street and e-mail addresses, and phone 
number, for the individual attesting to the disability of the individual 
who is deaf-blind;
    (iii) For each piece of equipment distributed, its name, serial 
number, brand, function, and cost, the type of communications service 
with which it is used, and the type of relay service it can access;
    (iv) For each piece of equipment distributed, the amount of time, 
following any assessment conducted, that the requesting individual 
waited to receive that equipment;
    (v) The cost, time and any other resources allocated to assessing an 
individual's equipment needs;
    (vi) The cost, time and any other resources allocated to installing 
equipment and training deaf-blind individuals on using equipment;
    (vii) The cost, time and any other resources allocated to maintain, 
repair, cover under warranty, and refurbish equipment;
    (viii) The cost, time and any other resources allocated to outreach 
activities related to the NDBEDP, and the type of outreach efforts 
undertaken;
    (ix) The cost, time and any other resources allocated to upgrading 
the distributed equipment, along with the nature of such upgrades;
    (x) To the extent that the program has denied equipment requests 
made by

[[Page 344]]

their deaf-blind residents, a summary of the number and types of 
equipment requests denied and reasons for such denials;
    (xi) To the extent that the program has received complaints related 
to the program, a summary of the number and types of such complaints and 
their resolution; and
    (xii) The number of qualified applicants on waiting lists to receive 
equipment.
    (2) With each report, the chief executive officer, chief financial 
officer, or other senior executive of the certified program, such as a 
director or manager, with first-hand knowledge of the accuracy and 
completeness of the information provided in the report, must certify as 
follows:

    I swear under penalty of perjury that I am (name and title), an 
officer of the above-named reporting entity and that I have examined the 
foregoing reports and that all requested information has been provided 
and all statements of fact are true and an accurate statement of the 
affairs of the above-named certified program.

    (h) Administration of the program. The Consumer and Governmental 
Affairs Bureau shall designate a Commission official as the NDBEDP 
Administrator.
    (1) The NDBEDP Administrator will work in collaboration with the TRS 
Fund Administrator, and be responsible for:
    (i) Reviewing program applications received from state EDPs and 
alternate entities and certifying those that qualify to participate in 
the program;
    (ii) Allocating NDBEDP funding as appropriate and in consultation 
with the TRS Fund Administrator;
    (iii) Reviewing certified program submissions for reimbursement of 
costs under the NDBEDP, in consultation with the TRS Fund Administrator;
    (iv) Working with Commission staff to establish and maintain an 
NDBEDP Web site, accessible to individuals with disabilities, that 
includes contact information for certified programs by state and links 
to their respective Web sites, if any, and overseeing other outreach 
efforts that may be undertaken by the Commission;
    (v) Obtaining, reviewing, and evaluating reported data for the 
purpose of assessing the pilot program and determining best practices;
    (vi) Conferring with stakeholders, jointly or separately, during the 
course of the pilot program to obtain input and feedback on, among other 
things, the effectiveness of the pilot program, new technologies, 
equipment and services that are needed, and suggestions for the 
permanent program;
    (vii) Working with Commission staff to adopt permanent rules for the 
NDBEDP; and
    (viii) Serving as the Commission point of contact for the NDBEDP, 
including responding to inquiries from certified programs and consumer 
complaints filed directly with the Commission.
    (2) The TRS Fund Administrator, as directed by the NDBEDP 
Administrator, shall have responsibility for:
    (i) Reviewing cost submissions and releasing funds for equipment 
that has been distributed and authorized related services, including 
outreach efforts;
    (ii) Releasing funds for other authorized purposes, as requested by 
the Commission or the Consumer and Governmental Affairs Bureau; and
    (iii) Collecting data as needed for delivery to the Commission and 
the NDBEDP Administrator.
    (i) Whistleblower protections. (1) NDBEDP certified programs shall 
permit, without reprisal in the form of an adverse personnel action, 
purchase or contract cancellation or discontinuance, eligibility 
disqualification, or otherwise, any current or former employee, agent, 
contractor, manufacturer, vendor, applicant, or recipient, to disclose 
to a designated official of the certified program, the NDBEDP 
Administrator, the TRS Fund Administrator, the Commission's Office of 
Inspector General, or to any federal or state law enforcement entity, 
any known or suspected violations of the Act or Commission rules, or any 
other activity that the reporting person reasonably believes to be 
unlawful, wasteful, fraudulent, or abusive, or that otherwise could 
result in the improper distribution of equipment, provision of services, 
or billing to the TRS Fund.

[[Page 345]]

    (2) NDBEDP certified programs shall include these whistleblower 
protections with the information they provide about the program in any 
employee handbooks or manuals, on their Web sites, and in other 
appropriate publications.
    (j) Suspension or revocation of certification. (1) The Commission 
may suspend or revoke NDBEDP certification if, after notice and 
opportunity for hearing, the Commission determines that such 
certification is no longer warranted.
    (2) In the event of suspension or revocation, the Commission shall 
take such steps as may be necessary, consistent with this subpart, to 
ensure continuity of the NDBEDP for the state whose program has been 
suspended or revoked.
    (3) The Commission may, at its discretion and on its own motion, 
require a certified program to submit documentation demonstrating 
ongoing compliance with the Commission's rules if, for example, the 
Commission receives evidence that a state program may not be in 
compliance with those rules.
    (k) Expiration of rules. These rules will expire at the termination 
of the NDBEDP pilot program.

[76 FR 26647, May 9, 2011; 76 FR 31261, May 31, 2011]



Sec. 64.611  Internet-based TRS registration.

    (a) Default provider registration. Every provider of VRS or IP Relay 
must, no later than December 31, 2008, provide users with the capability 
to register with that VRS or IP Relay provider as a ``default 
provider.'' Upon a user's registration, the VRS or IP Relay provider 
shall:
    (1) Either:
    (i) Facilitate the user's valid number portability request as set 
forth in 47 CFR 52.34; or, if the user does not wish to port a number,
    (ii) Assign that user a geographically appropriate North American 
Numbering Plan telephone number; and
    (2) Route and deliver all of that user's inbound and outbound calls 
unless the user chooses to place a call with, or receives a call from, 
an alternate provider.
    (3) Certification of eligibility of VRS users. (i) A VRS provider 
seeking compensation from the TRS Fund for providing VRS to a particular 
user registered with that provider must first obtain a written 
certification from the user, attesting that the user is eligible to use 
VRS.
    (ii) The certification required by paragraph (a)(3)(i) of this 
section must include the user's attestation that:
    (A) The user has a hearing or speech disability; and
    (B) The user understands that the cost of VRS calls is paid for by 
contributions from other telecommunications users to the TRS Fund.
    (iii) The certification required by paragraph (a)(3)(i) of this 
section must be made on a form separate from any other agreement or 
form, and must include a separate user signature specific to the 
certification. For the purposes of this rule, 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. For the purposes of this rule, 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.
    (iv) Each VRS provider shall maintain the confidentiality of any 
registration and certification information obtained by the provider, and 
may not disclose such registration and certification information or the 
content of such registration and certification information except as 
required by law or regulation.
    (v) VRS providers must, for existing registered Internet-based TRS 
users, submit the certification required by paragraph (a)(3)(i) of this 
section to the TRS User Registration Database within 60 days of notice 
from the Managing Director that the TRS User Registration Database is 
ready to accept such information.
    (vi) When registering a user that is transferring service from 
another VRS

[[Page 346]]

provider, VRS providers shall obtain and submit a properly executed 
certification if a query of the TRS User Registration Database shows a 
properly executed certification has not been filed.
    (vii) VRS providers shall require their CAs to terminate any call 
which does not involve an individual eligible to use VRS due to a 
hearing or speech disability or, pursuant to the provider's policies, 
the call does not appear to be a legitimate VRS call, and VRS providers 
may not seek compensation for such calls from the TRS Fund.
    (4) TRS User Registration Database information. Each VRS provider 
shall collect and transmit to the TRS User Registration Database, in a 
format prescribed by the administrator of the TRS User Registration 
Database, the following information for each of its new and existing 
registered Internet-based TRS users: full name; full residential 
address; ten-digit telephone number assigned in the TRS numbering 
directory; last four digits of the social security number or Tribal 
Identification number, if the registered Internet-based TRS user is a 
member of a Tribal nation and does not have a social security number; 
date of birth; Registered Location; VRS provider name and dates of 
service initiation and termination; a digital copy of the user's self-
certification of eligibility for VRS and the date obtained by the 
provider; the date on which the user's identification was verified; and 
(for existing users only) the date on which the registered Internet-
based TRS user last placed a point-to-point or relay call.
    (i) Each VRS provider must obtain, from each new and existing 
registered Internet-based TRS user, consent to transmit the registered 
Internet-based TRS user's information to the TRS User Registration 
Database. Prior to obtaining consent, the VRS provider must describe to 
the registered Internet-based TRS user, using clear, easily understood 
language, the specific information being transmitted, that the 
information is being transmitted to the TRS User Registration Database 
to ensure proper administration of the TRS program, and that failure to 
provide consent will result in the registered Internet-based TRS user 
being denied service. VRS providers must obtain and keep a record of 
affirmative acknowledgment by every registered Internet-based TRS user 
of such consent.
    (ii) VRS providers must, for existing registered Internet-based TRS 
users, submit the information in paragraph (a)(3) of this section to the 
TRS User Registration Database within 60 days of notice from the 
Commission that the TRS User Registration Database is ready to accept 
such information. Calls from or to existing registered Internet-based 
TRS users that have not had their information populated in the TRS User 
Registration Database within 60 days of notice from the Commission that 
the TRS User Registration Database is ready to accept such information 
shall not be compensable.
    (iii) VRS providers must submit the information in paragraph (a)(4) 
of this section upon initiation of service for users registered after 60 
days of notice from the Commission that the TRS User Registration 
Database is ready to accept such information.
    (b) Mandatory registration of new users. As of December 31, 2008, 
VRS and IP Relay providers must, prior to the initiation of service for 
an individual that has not previously utilized VRS or IP Relay, register 
that new user as described in paragraph (a) of this section.
    (c) Obligations of default providers and former default providers. 
(1) Default providers must:
    (i) Obtain current routing information, including IP addresses or 
domain names and user names, from their Registered Internet-based TRS 
Users;
    (ii) Provision such information to the TRS Numbering Directory; and
    (iii) Maintain such information in their internal databases and in 
the TRS Numbering Directory.
    (2) Internet-based TRS providers (and, to the extent necessary, 
their Numbering Partners) must:
    (i) Take such steps as are necessary to cease acquiring routing 
information from any VRS or IP Relay user that ports his or her number 
to another VRS or IP Relay provider or otherwise selects a new default 
provider;
    (ii) Communicate among themselves as necessary to ensure that:
    (A) Only the default provider provisions routing information to the 
central database; and

[[Page 347]]

    (B) VRS and IP Relay providers other than the default provider are 
aware that they must query the TRS Numbering Directory in order to 
obtain accurate routing information for a particular user of VRS or IP 
Relay.
    (d) Proxy numbers. After December 31, 2008, a VRS or IP Relay 
provider:
    (1) May not assign or issue a proxy or alias for a NANP telephone 
number to any user; and
    (2) Must cease to use any proxy or alias for a NANP telephone number 
assigned or issued to any Registered Internet-based TRS User.
    (e) Toll free numbers. A VRS or IP Relay provider:
    (1) May not assign or issue a toll free number to any VRS or IP 
Relay user.
    (2) That has already assigned or provided a toll free number to a 
VRS or IP Relay user must, at the VRS or IP Relay user's request, 
facilitate the transfer of the toll free number to a toll free 
subscription with a toll free service provider that is under the direct 
control of the user.
    (3) Must within one year after the effective date of this Order 
remove from the Internet-based TRS Numbering Directory any toll free 
number that has not been transferred to a subscription with a toll free 
service provider and for which the user is the subscriber of record.
    (f) iTRS access technology. (1) Every VRS or IP Relay provider must 
ensure that all iTRS access technology they have issued, leased, or 
otherwise provided to VRS or IP Relay users delivers routing information 
or other information only to the user's default provider, except as is 
necessary to complete or receive ``dial around'' calls on a case-by-case 
basis.
    (2) All iTRS access technology issued, leased, or otherwise provided 
to VRS or IP Relay users by Internet-based TRS providers must be capable 
of facilitating the requirements of this section.
    (g) User notification. Every VRS or IP Relay provider must include 
an advisory on its website and in any promotional materials addressing 
numbering or E911 services for VRS or IP Relay.
    (1) At a minimum, the advisory must address the following issues:
    (i) The process by which VRS or IP Relay users may obtain ten-digit 
telephone numbers, including a brief summary of the numbering assignment 
and administration processes adopted herein;
    (ii) The portability of ten-digit telephone numbers assigned to VRS 
or IP Relay users;
    (iii) The process by which persons using VRS or IP Relay may submit, 
update, and confirm receipt by the provider of their Registered Location 
information;
    (iv) An explanation emphasizing the importance of maintaining 
accurate, up-to-date Registered Location information with the user's 
default provider in the event that the individual places an emergency 
call via an Internet-based relay service;
    (v) The process by which a VRS or IP Relay user may acquire a toll 
free number, or transfer control of a toll free number from a VRS or IP 
Relay provider to the user; and
    (vi) The process by which persons holding a toll free number request 
that the toll free number be linked to their ten-digit telephone number 
in the TRS Numbering Directory.
    (2) VRS and IP Relay providers must obtain and keep a record of 
affirmative acknowledgment by every Registered Internet-based TRS User 
of having received and understood the advisory described in this 
subsection.
    (h) A VRS CA service provider shall fulfill its obligations under 
paragraphs (a), (c), (d), and (e) of this section using the Neutral 
Video Communication Service Platform.

[73 FR 41295, July 18, 2008, as amended at 76 FR 59557, Sept. 27, 2011; 
78 FR 40608, July 5, 2013]

    Effective Date Note: At 78 FR 40608, July 5, 2013, Sec. 64.611 was 
amended by adding paragraphs (a)(3) and (a)(4). These paragraphs 
contains information collection and recordkeeping requirements and will 
not become effective until approval has been given by the Office of 
Management and Budget.



Sec. 64.613  Numbering directory for Internet-based TRS users.

    (a) TRS Numbering Directory. (1) The TRS Numbering Directory shall 
contain records mapping the geographically appropriate NANP telephone

[[Page 348]]

number of each Registered Internet-based TRS User to a unique Uniform 
Resource Identifier (URI).
    (2) For each record associated with a VRS user's geographically 
appropriate NANP telephone number, the URI shall contain the IP address 
of the user's device. For each record associated with an IP Relay user's 
geographically appropriate NANP telephone number, the URI shall contain 
the user's user name and domain name that can be subsequently resolved 
to reach the user.
    (3) Within one year after the effective date of this Order, 
Internet-based TRS providers must ensure that a user's toll free number 
that is associated with a geographically appropriate NANP number will be 
associated with the same URI as that geographically appropriate NANP 
telephone number.
    (4) Only the TRS Numbering Administrator and Internet-based TRS 
providers may access the TRS Numbering Directory.
    (b) Administration--(1) Neutrality. (i) The TRS Numbering 
Administrator shall be a non-governmental entity that is impartial and 
not an affiliate of any Internet-based TRS provider.
    (ii) Neither the TRS Numbering Administrator nor any affiliate may 
issue a majority of its debt to, nor derive a majority of its revenues 
from, any Internet-based TRS provider.
    (iii) Nor may the TRS Numbering Administrator nor any affiliate be 
unduly influenced, as determined by the North American Numbering 
Council, by parties with a vested interest in the outcome of TRS-related 
numbering administration and activities.
    (iv) Any subcontractor that performs any function of the TRS 
Numbering Administrator must also meet these neutrality criteria.
    (2) Terms of Administration. The TRS Numbering Administrator shall 
administer the TRS Numbering Directory pursuant to the terms of its 
contract.
    (3) Compensation. The TRS Fund, as defined by 47 CFR 
64.604(a)(5)(iii), may compensate the TRS Numbering Administrator for 
the reasonable costs of administration pursuant to the terms of its 
contract.

[73 FR 41296, July 18, 2008, as amended at 76 FR 59577, Sept. 27, 2011]



Sec. 64.615  TRS User Registration Database and administrator.

    (a) TRS User Registration Database. (1) VRS providers shall validate 
the eligibility of the party on the video side of each call by querying 
the TRS User Registration Database on a per-call basis. Emergency 911 
calls are excepted from this requirement.
    (i) Validation shall occur during the call setup process, prior to 
the placement of the call.
    (ii) If the eligibility of at least one party to the call is not 
validated using the TRS User Registration Database, the call shall not 
be completed, and the VRS provider shall either terminate the call or, 
if appropriate, offer to register the user if they are able to 
demonstrate eligibility.
    (iii) Calls that VRS providers are prohibited from completing 
because the user's eligibility cannot be validated shall not be included 
in speed of answer calculations and shall not be eligible for 
compensation from the TRS Fund.
    (2) The administrator of the TRS User Registration Database shall 
assign a unique identifier to each user in the TRS User Registration 
Database.
    (3) Data integrity. (i) Each VRS provider shall request that the 
administrator of the TRS User Registration Database remove from the TRS 
User Registration Database user information for any registered user:
    (A) Who informs its default provider that it no longer wants use of 
a ten-digit number for TRS services; or;
    (B) For whom the provider obtains information that the user is not 
eligible to use the service.
    (ii) The administrator of the TRS User Registration Database shall 
remove the data of:
    (A) Any user that has neither placed nor received a VRS or point to 
point call in a one year period; and
    (B) Any user for which a VRS provider makes a request under 
paragraph (a)(3)(i) of this section.
    (4) VRS providers may query the TRS User Registration Database only 
for the purposes provided in this subpart, and to determine whether 
information with respect to its registered users already in the database 
is correct and complete.

[[Page 349]]

    (5) User verification. (i) The TRS User Registration Database shall 
have the capability of performing an identification verification check 
when a VRS provider or other party submits a query to the database about 
an existing or potential user.
    (ii) VRS providers shall not register individuals that do not pass 
the identification verification check conducted through the TRS User 
Registration Database.
    (iii) VRS providers shall not seek compensation for calls placed by 
individuals that do not pass the identification verification check 
conducted through the TRS User Registration Database.
    (b) Administration--(1) Terms of administration. The administrator 
of the TRS User Registration Database shall administer the TRS User 
Registration Database pursuant to the terms of its contract.
    (2) Compensation. The TRS Fund, as defined by Sec. 
64.604(a)(5)(iii) of this subpart, may be used to compensate the 
administrator of the TRS User Registration Database for the reasonable 
costs of administration pursuant to the terms of its contract.

[78 FR 40609, July 5, 2013]

    Effective Date Note: At 78 FR 40609, July 5, 2013, Sec. 64.615 was 
added. Paragraph (a) contains information collection and recordkeeping 
requirements and will not become effective until approval has been given 
by the Office of Management and Budget.



Sec. 64.617  Neutral Video Communication Service Platform.

    (a) VRS CA service providers certified by the Commission are 
required to utilize the Neutral Video Communication Service Platform to 
process VRS calls. Each VRS CA service provider shall be responsible for 
providing sign language interpretation services and for ensuring that 
the Neutral Video Communication Service Platform has the information it 
needs to provide video communication service on the VRS CA service 
provider's behalf.
    (b) Administration--(1) Terms of administration. The provider of the 
Neutral Video Communication Service Platform shall administer the 
Neutral Video Communication Service Platform pursuant to the terms of 
its contract.
    (2) Compensation. The TRS Fund, as defined by Sec. 
64.604(a)(5)(iii) of this subpart, may be used to compensate the 
provider of the Neutral Video Communication Service Platform for the 
reasonable costs of administration pursuant to the terms of its 
contract.

[78 FR 40609, July 5, 2013]



Sec. 64.619  VRS Access Technology Reference Platform and administrator.

    (a) VRS Access Technology Reference Platform. (1) The VRS Access 
Technology Reference Platform shall be a software product that performs 
consistently with the rules in this subpart, including any standards 
adopted in Sec. 64.621 of this subpart.
    (2) The VRS Access Technology Reference Platform shall be available 
for use by the public and by developers.
    (b) Administration--(1) Terms of administration. The administrator 
of the VRS Access Technology Reference Platform shall administer the VRS 
Access Technology Reference Platform pursuant to the terms of its 
contract.
    (2) Compensation. The TRS Fund, as defined by Sec. 
64.604(a)(5)(iii) of this subpart, may be used to compensate the 
administrator of the VRS Access Technology Reference Platform for the 
reasonable costs of administration pursuant to the terms of its 
contract.

[78 FR 40609, July 5, 2013]



Sec. 64.621  Interoperability and portability.

    (a) General obligations of VRS providers. (1) All VRS users must be 
able to place a VRS call through any of the VRS providers' services, and 
all VRS providers must be able to receive calls from, and make calls to, 
any VRS user.
    (2) A VRS provider may not take steps that restrict a user's 
unfettered access to another provider's service, such as providing 
degraded service quality to VRS users using VRS equipment or service 
with another provider's service.
    (3) All VRS providers must ensure that their VRS access technologies 
and their video communication service platforms are interoperable with 
the VRS Access Technology Reference

[[Page 350]]

Platform, including for point-to-point calls. No VRS provider shall be 
compensated for minutes of use involving their VRS access technologies 
or video communication service platforms that are not interoperable with 
the VRS Access Technology Reference Platform.
    (4) All VRS providers must ensure that their VRS access technologies 
and their video communication service platforms are interoperable with 
the Neutral Video Communication Service Platform, including for point-
to-point calls. No VRS provider shall be compensated for minutes of use 
involving their VRS access technologies or video communication service 
platforms that are not interoperable with the Neutral Video 
Communication Service Platform.
    (b) [Reserved]

[78 FR 40609, July 5, 2013]



Sec. 64.623  Administrator requirements.

    (a) For the purposes of this section, the term ``Administrator'' 
shall refer to each of the TRS Numbering administrator, the 
administrator of the TRS User Registration Database, the administrator 
of the VRS Access Technology Reference Platform, and the provider of the 
Neutral Video Communication Service Platform. A single entity may serve 
in one or more of these capacities.
    (b) Neutrality. (1) The Administrator shall be a non-governmental 
entity that is impartial and not an affiliate of any Internet-based TRS 
provider.
    (2) Neither the Administrator nor any affiliate thereof shall issue 
a majority of its debt to, nor derive a majority of its revenues from, 
any Internet-based TRS provider.
    (3) Neither the TRS Numbering administrator nor any affiliate 
thereof shall be unduly influenced, as determined by the North American 
Numbering Council, by parties with a vested interest in the outcome of 
TRS-related numbering administration and activities.
    (4) None of the administrator of the TRS User Registration Database, 
the administrator of the VRS Access Technology Reference Platform, or 
the provider of the Neutral Video Communication Service Platform, nor 
any affiliates thereof, shall be unduly influenced, as determined by the 
Commission, by parties with a vested interest in the outcome of TRS-
related activities.
    (5) Any subcontractor that performs any function of any 
Administrator shall also meet the neutrality criteria applicable to such 
Administrator.
    (c) Terms of administration. The Administrator shall administer 
pursuant to the terms of its contract.
    (d) Compensation. The TRS Fund, as defined by Sec. 
64.604(a)(5)(iii) of this subpart, may be used to compensate the 
Administrator for the reasonable costs of administration pursuant to the 
terms of its contract.

[78 FR 40609, July 5, 2013]



Sec. 64.630  Applicability of change of default TRS provider rules.

    Sections 64.630 through 64.636 of this part governing changes in 
default TRS providers shall apply to any provider of IP Relay or VRS 
eligible to receive payments from the TRS Fund.

[78 FR 40609, July 5, 2013]



Sec. 64.631  Verification of orders for change of default TRS providers.

    (a) No iTRS provider, either directly or through its numbering 
partner, shall initiate or implement the process to change an iTRS 
user's selection of a default provider prior to obtaining:
    (1) Authorization from the iTRS user, and
    (2) Verification of that authorization in accordance with the 
procedures prescribed in this section. The new default provider shall 
maintain and preserve without alteration or modification all records of 
verification of the iTRS user's authorization for a minimum period of 
five years after obtaining such verification and shall make such records 
available to the Commission upon request. In any case where the iTRS 
provider is unable, unwilling or otherwise fails to make such records 
available to the Commission upon request, it shall be presumed that the 
iTRS provider has failed to comply with its verification obligations 
under the rules.
    (b) Where an iTRS provider is offering more than one type of TRS, 
that

[[Page 351]]

provider must obtain separate authorization from the iTRS user for each 
service, although the authorizations may be obtained within the same 
transaction. Each authorization must be verified separately from any 
other authorizations obtained in the same transaction. Each 
authorization must be verified in accordance with the verification 
procedures prescribed in this part.
    (c) A new iTRS provider shall not, either directly or through its 
numbering partner, initiate or implement the process to change a default 
provider unless and until the order has been verified in accordance with 
one of the following procedures:
    (1) The iTRS provider has obtained the iTRS user's written or 
electronically signed authorization in a form that meets the 
requirements of Sec. 64.632 of this part; or
    (2) An independent third party meeting the qualifications in this 
subsection has obtained, in accordance with the procedures set forth in 
paragraphs (c)(2)(i) through (iv) of this section, the iTRS user's 
authorization to implement the default provider change order that 
confirms and includes appropriate verification of registration data with 
the TRS User Registration Database as defined in Sec. 64.601(a) of this 
part. The independent third party must not be owned, managed, 
controlled, or directed by the iTRS provider or the iTRS provider's 
marketing agent; must not have any financial incentive to confirm 
default provider change orders for the iTRS provider or the iTRS 
provider's marketing agent; and must operate in a location physically 
separate from the iTRS provider or the iTRS provider's marketing agent.
    (i) Methods of third party verification. Third party verification 
systems and three-way conference calls may be used for verification 
purposes so long as the requirements of paragraphs (c)(3)(ii) through 
(iv) of this section are satisfied. It shall be a per se violation of 
these rules if at any time the iTRS provider, an iTRS provider's 
marketing representative, or any other person misleads the iTRS user 
with respect to the authorization that the iTRS user is giving, the 
purpose of that authorization, the purpose of the verification, the 
verification process, or the identity of the person who is placing the 
call as well as on whose behalf the call is being placed, if applicable.
    (ii) Provider initiation of third party verification. An iTRS 
provider or an iTRS provider's marketing representative initiating a 
three-way conference call must drop off the call once the three-way 
connection has been established.
    (iii) Requirements for content and format of third party 
verification. Any description of the default provider change transaction 
by a third party verifier must not be misleading. At the start of the 
third party verification process, the third party verifier shall 
identify the new default provider to the iTRS user and shall confirm 
that the iTRS user understands that the iTRS user is changing default 
providers and will no longer receive service from the iTRS user's 
current iTRS provider. In addition, all third party verification methods 
shall elicit, at a minimum: The date of the verification; the identity 
of the iTRS user; confirmation that the person on the call is the iTRS 
user; confirmation that the iTRS user wants to make the default provider 
change; confirmation that the iTRS user understands that a default 
provider change, not an upgrade to existing service, or any other 
misleading description of the transaction, is being authorized; 
confirmation that the iTRS user understands what the change in default 
provider means, including that the iTRS user may need to return any 
video equipment belonging to the original default provider; the name of 
the new default provider affected by the change; the telephone number of 
record to be transferred to the new default provider; and the type of 
TRS used with the telephone number being transferred. If the iTRS user 
has additional questions for the iTRS provider's marketing 
representative during the verification process, the verifier shall 
instruct the iTRS user that they are terminating the verification 
process, that the iTRS user may contact the marketing representative 
with additional questions, and that the iTRS user's default provider 
will not be changed. The marketing representative

[[Page 352]]

may again initiate the verification process following the procedures set 
out in this section after the iTRS user contacts the marketing 
representative with any additional questions. Third party verifiers may 
not market the iTRS provider's services by providing additional 
information.
    (iv) Other requirements for third party verification. All third 
party verifications shall be conducted in the same language and format 
that were used in the underlying marketing transaction and shall be 
recorded in their entirety. In the case of VRS, this means that if the 
marketing process was conducted in American Sign Language (ASL), then 
the third party verification shall be conducted in ASL. In the event 
that the underlying marketing transaction was conducted via text over IP 
Relay, such text format shall be used for the third party verification. 
The third party verifier shall inform both the iTRS user and, where 
applicable, the communications assistant relaying the call, that the 
call is being recorded. The third party verifier shall provide the new 
default provider an audio, video, or IP Relay transcript of the 
verification of the iTRS user authorization. New default providers shall 
maintain and preserve audio and video records of verification of iTRS 
user authorization in accordance with the procedures set forth in 
paragraph (a)(2) of this section.
    (d) A new default provider shall implement an iTRS user's default 
provider change order within 60 days of obtaining either:
    (1) A written or electronically signed letter of agency in 
accordance with Sec. 64.632 of this part or
    (2) Third party verification of the iTRS user's default provider 
change order in accordance with paragraph (c)(2) of this section. If not 
implemented within 60 days as required herein, such default provider 
change order shall be deemed void.
    (e) At any time during the process of changing an iTRS user's 
default provider, and until such process is completed, which is when the 
new default provider assumes the role of default provider, the original 
default provider shall not:
    (1) Reduce the level or quality of iTRS service provided to such 
iTRS user, or
    (2) Reduce the functionality of any VRS access technology provided 
by the iTRS provider to such iTRS user.
    (f) An iTRS provider that is certified pursuant to Sec. 
64.606(a)(2) of this part may acquire, through a sale or transfer, 
either part or all of another iTRS provider's iTRS user base without 
obtaining each iTRS user's authorization and verification in accordance 
with paragraph (c) of this section, provided that the acquiring iTRS 
provider complies with the following streamlined procedures. An iTRS 
provider shall not use these streamlined procedures for any fraudulent 
purpose, including any attempt to avoid liability for violations under 
part 64 of the Commission rules.
    (1) Not later than 30 days before the transfer of the affected iTRS 
users from the selling or transferring iTRS provider to the acquiring 
iTRS provider, the acquiring iTRS provider shall provide notice to each 
affected iTRS user of the information specified herein. The acquiring 
iTRS provider is required to fulfill the obligations set forth in the 
advance iTRS user notice. In the case of VRS, the notice shall be 
provided as a pre-recorded video message in American Sign Language sent 
to all affected iTRS users. In the case of IP Relay, the notice shall be 
provided as a pre-recorded text message sent to all affected iTRS users. 
The advance iTRS user notice shall be provided in a manner consistent 
with 47 U.S.C. 255, 617, 619 and the Commission's rules regarding 
accessibility to blind and visually-impaired consumers, Sec. Sec. 6.3, 
6.5, 14.20, and 14.21 of this chapter. The following information must be 
included in the advance iTRS user notice:
    (i) The date on which the acquiring iTRS provider will become the 
iTRS user's new default provider;
    (ii) The iTRS user's right to select a different default provider 
for the iTRS at issue, if an alternative iTRS provider is available;
    (iii) Whether the acquiring iTRS provider will be responsible for 
handling any complaints filed, or otherwise raised, prior to or during 
the transfer

[[Page 353]]

against the selling or transferring iTRS provider, and
    (iv) The toll-free customer service telephone number of the 
acquiring iTRS provider.
    (2) All iTRS users receiving the notice will be transferred to the 
acquiring iTRS provider, unless they have selected a different default 
provider before the transfer date.

[78 FR 40609, July 5, 2013]

    Effective Date Note: At 78 FR 40609, July 5, 2013, Sec. 64.631 was 
added. Paragraphs (a) through (d) and (f) contain information collection 
and recordkeeping requirements and will not become effective until 
approval has been given by the Office of Management and Budget.



Sec. 64.632  Letter of authorization form and content.

    (a) An iTRS provider may use a written or electronically signed 
letter of authorization to obtain authorization of an iTRS user's 
request to change his or her default provider. A letter of authorization 
that does not conform with this section is invalid for purposes of this 
subpart.
    (b) The letter of authorization shall be a separate document or 
located on a separate screen or Web page. The letter of authorization 
shall contain the following title ``Letter of Authorization to Change my 
Default Provider'' at the top of the page, screen, or Web page, as 
applicable, in clear and legible type.
    (c) The letter of authorization shall contain only the authorizing 
language described in paragraph (d) of this section and be strictly 
limited to authorizing the new default provider to implement a default 
provider change order. The letter of authorization shall be signed and 
dated by the iTRS user requesting the default provider change.
    (d) At a minimum, the letter of authorization must be printed with a 
type of sufficient size and readable type to be clearly legible and must 
contain clear and unambiguous language that confirms:
    (1) The iTRS user's registered name and address and each telephone 
number to be covered by the default provider change order;
    (2) The decision to change the default provider from the original 
default provider to the new default provider;
    (3) That the iTRS user designates [insert the name of the new 
default provider] to act as the iTRS user's agent and authorizing the 
new default provider to implement the default provider change; and
    (4) That the iTRS user understands that only one iTRS provider may 
be designated as the TRS user's default provider for any one telephone 
number.
    (e) If any portion of a letter of authorization is translated into 
another language then all portions of the letter of authorization must 
be translated into that language. Every letter of authorization must be 
translated into the same language as any promotional materials, 
descriptions or instructions provided with the letter of authorization.
    (f) Letters of authorization submitted with an electronically signed 
authorization must include the consumer disclosures required by Section 
101(c) of the Electronic Signatures in Global and National Commerce Act.

[78 FR 40609, July 5, 2013]



Sec. 64.633  Procedures for resolution of unauthorized changes in default 

provider.

    (a) Notification of alleged unauthorized provider change. Original 
default providers who are informed of an unauthorized default provider 
change by an iTRS user shall immediately notify the allegedly 
unauthorized provider and the Commission's Consumer and Governmental 
Affairs Bureau of the incident.
    (b) Referral of complaint. Any iTRS provider that is informed by an 
iTRS user or original default provider of an unauthorized default 
provider change shall:
    (1) Notify the Commission's Consumer and Governmental Affairs 
Bureau, and
    (2) Shall inform that iTRS user of the iTRS user's right to file a 
complaint with the Commission's Consumer and Governmental Affairs 
Bureau. iTRS providers shall also inform the iTRS user that the iTRS 
user may contact and file a complaint with the alleged unauthorized 
default provider. An original default provider shall have the

[[Page 354]]

right to file a complaint with the Commission in the event that one of 
its respective iTRS users is the subject of an alleged unauthorized 
default provider change.
    (c) Notification of receipt of complaint. Upon receipt of an 
unauthorized default provider change complaint or notification filed 
pursuant to this section, the Commission will notify the allegedly 
unauthorized provider and the Fund administrator of the complaint or 
notification and order that the unauthorized provider identify to the 
Fund administrator all minutes attributable to the iTRS user after the 
alleged unauthorized change of default provider is alleged to have 
occurred. The Fund administrator shall withhold reimbursement for such 
minutes pending Commission determination of whether an unauthorized 
change, as defined by Sec. 64.601(a) of this part, has occurred, if it 
has not already done so.
    (d) Proof of verification. Not more than 30 days after notification 
of the complaint or other notification, the alleged unauthorized default 
provider shall provide to the Commission's Consumer and Governmental 
Affairs Bureau a copy of any valid proof of verification of the default 
provider change. This proof of verification must clearly demonstrate a 
valid authorized default provider change, as that term is defined in 
Sec. Sec. 64.631 through 64.632 of this part. The Commission will 
determine whether an unauthorized change, as defined by Sec. 64.601(a) 
of this part, has occurred using such proof and any evidence supplied by 
the iTRS user or other iTRS providers. Failure by the allegedly 
unauthorized provider to respond or provide proof of verification will 
be presumed to be sufficient evidence of a violation.

[78 FR 40609, July 5, 2013]



Sec. 64.634  Procedures where the Fund has not yet reimbursed the provider.

    (a) This section shall only apply after an iTRS user or iTRS 
provider has complained to or notified the Commission that an allegedly 
unauthorized change, as defined by Sec. 64.601(a) of this part, has 
occurred, and the TRS Fund (Fund), as defined in Sec. 64.604(c)(5)(iii) 
of this part, has not reimbursed the allegedly unauthorized default 
provider for service attributable to the iTRS user after the allegedly 
unauthorized change occurred.
    (b) An allegedly unauthorized provider shall identify to the Fund 
administrator all minutes submitted by the allegedly unauthorized 
provider to the Fund for reimbursement that are attributable to the iTRS 
user after the allegedly unauthorized change of default provider, as 
defined by Sec. 64.601(a) of this part, is alleged to have occurred.
    (c) If the Commission determines that an unauthorized change, as 
defined by Sec. 64.601(a) of this part, has occurred, the Commission 
shall direct the Fund administrator to not reimburse for any minutes 
attributable to the iTRS user after the unauthorized change occurred, 
and neither the authorized nor the unauthorized default provider may 
seek reimbursement from the fund for those charges. The remedies 
provided in this section are in addition to any other remedies available 
by law.
    (d) If the Commission determines that the default provider change 
was authorized, the default provider may seek reimbursement from the 
Fund for minutes of service provided to the iTRS user.

[78 FR 40609, July 5, 2013]

    Effective Date Note: At 78 FR 40609, July 5, 2013, Sec. 64.634 was 
added. Paragraph (b) contains information collection and recordkeeping 
requirements and will not become effective until approval has been given 
by the Office of Management and Budget.



Sec. 64.635  Procedures where the Fund has already reimbursed the provider.

    (a) The procedures in this section shall only apply after an iTRS 
user or iTRS provider has complained to or notified the Commission that 
an unauthorized change, as defined by Sec. 64.601(a) of this part, has 
occurred, and the Fund has reimbursed the allegedly unauthorized default 
provider for minutes of service provided to the iTRS user.
    (b) If the Commission determines that an unauthorized change, as 
defined by Sec. 64.601(a) of this part, has occurred, it shall direct 
the unauthorized

[[Page 355]]

default provider to remit to the Fund an amount equal to 100% of all 
payments the unauthorized default provider received from the Fund for 
minutes attributable to the iTRS user after the unauthorized change 
occurred. The remedies provided in this section are in addition to any 
other remedies available by law.

[78 FR 40609, July 5, 2013]



Sec. 64.636  Prohibition of default provider freezes.

    (a) A default provider freeze prevents a change in an iTRS user's 
default provider selection unless the iTRS user gives the provider from 
whom the freeze was requested his or her express consent.
    (b) Default provider freezes shall be prohibited.

[78 FR 40609, July 5, 2013]



    Subpart G_Furnishing of Enhanced Services and Customer-Premises 

   Equipment by Bell Operating Companies; Telephone Operator Services



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

    (a) For the purpose of this subpart, the term enhanced service shall 
refer to services, offered over common carrier transmission facilities 
used in interstate communications, which employ computer processing 
applications that act on the format, content, code, protocol or similar 
aspects of the subscriber's transmitted information; provide the 
subscriber additional, different, or restructured information; or 
involve subscriber interaction with stored information. Enhanced 
services are not regulated under title II of the Act.
    (b) Bell Operating Companies common carriers subject, in whole or in 
part, to the Communications Act may directly provide enhanced services 
and customer-premises equipment; provided, however, that the Commission 
may prohibit any such common carrier from engaging directly or 
indirectly in furnishing enhanced services or customer-premises 
equipment to others except as provided for in paragraph (c) of this 
section, or as otherwise authorized by the Commission.
    (c) A Bell Operating Company common carrier prohibited by the 
Commission pursuant to paragraph (b) of this section from engaging in 
the furnishing of enhanced services or customer-premises equipment may, 
subject to other provisions of law, have a controlling or lesser 
interest in, or be under common control with, a separate corporate 
entity that furnishes enhanced services or customer-premises equipment 
to others provided the following conditions are met:
    (1) Each such separate corporation shall obtain all transmission 
facilities necessary for the provision of enhanced services pursuant to 
tariff, and may not own any network or local distribution transmission 
facilities or equipment.
    (2) Each such separate corporation shall operate independently in 
the furnishing of enhanced services and customer-premises equipment. It 
shall maintain its own books of account, have separate officers, utilize 
separate operating, marketing, installation, and maintenance personnel, 
and utilize separate computer facilities in the provision of enhanced 
services.
    (3) Each such separate corporation which provides customer-premises 
equipment or enhanced services shall deal with any affiliated 
manufacturing entity only on an arm's length basis.
    (4) Any research or development performed on a joint or separate 
basis for the subsidiary must be done on a compensatory basis. Except 
for generic software within equipment, manufactured by an affiliate, 
that is sold ``off the shelf'' to any interested purchaser, the separate 
corporation must develop its own software, or contract with non-
affiliated vendors.
    (5) All transactions between the separate corporation and the 
carrier or its affiliates which involve the transfer, either direct or 
by accounting or other record entries, of money, personnel, resources, 
other assets or anything of value, shall be reduced to writing. A copy 
of any contract, agreement, or other arrangement entered into between 
such entities shall be filed with the Commission within 30 days after

[[Page 356]]

the contract, agreement, or other arrangement is made. This provision 
shall not apply to any transaction governed by the provision of an 
effective state or federal tariff.
    (d) A carrier subject to the proscription set forth in paragraph (c) 
of this section:
    (1) Shall not engage in the sale or promotion of enhanced services 
or customer-premises equipment, on behalf of the separate corporation, 
or sell, lease or otherwise make available to the separate corporation 
any capacity or computer system component on its computer system or 
systems which are used in any way for the provision of its common 
carrier communications services. (This does not apply to communications 
services offered the separate subsidiary pursuant to tariff);
    (2) Shall disclose to the public all information relating to network 
design and technical standards and information affecting changes to the 
telecommunications network which would affect either intercarrier 
interconnection or the manner in which customer-premises equipment is 
attached to the interstate network prior to implementation and with 
reasonable advance notification. Such information shall be disclosed in 
compliance with the procedures set forth in 47 CFR 51.325 through 
51.335.
    (3) [Reserved]
    (4) Must obtain Commission approval as to the manner in which the 
separate corporation is to be capitalized, prior to obtaining any 
interest in the separate corporation or transferring any assets, and 
must obtain Commission approval of any modification to a Commission 
approved capitalization plan.
    (e) Except as otherwise ordered by the Commission, the carrier 
provision of customer premises equipment used in conjunction with the 
interstate telecommunications network may be offered in combination with 
the provision of common carrier communications services, except that the 
customer premises equipment shall not be offered on a tariffed basis.

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



Sec. 64.703  Consumer information.

    (a) Each provider of operator services shall:
    (1) Identify itself, audibly and distinctly, to the consumer at the 
beginning of each telephone call and before the consumer incurs any 
charge for the call;
    (2) Permit the consumer to terminate the telephone call at no charge 
before the call is connected;
    (3) Disclose immediately to the consumer, upon request and at no 
charge to the consumer--
    (i) A quotation of its rates or charges for the call;
    (ii) The methods by which such rates or charges will be collected; 
and
    (iii) The methods by which complaints concerning such rates, 
charges, or collection practices will be resolved; and
    (4) Disclose, audibly and distinctly to the consumer, at no charge 
and before connecting any interstate non-access code operator service 
call, how to obtain the total cost of the call, including any aggregator 
surcharge, or the maximum possible total cost of the call, including any 
aggregator surcharge, before providing further oral advice to the 
consumer on how to proceed to make the call. The oral disclosure 
required in this subsection shall instruct consumers that they may 
obtain applicable rate and surcharge quotations either, at the option of 
the provider of operator services, by dialing no more than two digits or 
by remaining on the line. The phrase ``total cost of the call'' as used 
in this paragraph means both the variable (duration-based) charges for 
the call and the total per-call charges, exclusive of taxes, that the 
carrier, or its billing agent, may collect from the consumer for the 
call. It does not include additional charges that may be assessed and 
collected without the involvement of the carrier, such as a hotel 
surcharge billed by a hotel. Such charges are addressed in paragraph (b) 
of this section.
    (b) Each aggregator shall post on or near the telephone instrument, 
in plain view of consumers:
    (1) The name, address, and toll-free telephone number of the 
provider of operator services;

[[Page 357]]

    (2) Except for CMRS aggregators, a written disclosure that the rates 
for all operator-assisted calls are available on request, and that 
consumers have a right to obtain access to the interstate common carrier 
of their choice and may contact their preferred interstate common 
carriers for information on accessing that carrier's service using that 
telephone;
    (3) In the case of a pay telephone, the local coin rate for the pay 
telephone location; and
    (4) The name and address of the Consumer Information Bureau of the 
Commission (Federal Communications Commission, Consumer Information 
Bureau, Consumer Complaints--Telephone, Washington, D.C. 20554), to 
which the consumer may direct complaints regarding operator services. An 
existing posting that displays the address that was required prior to 
the amendment of this rules (i.e., the address of the Common Carrier 
Bureau's Enforcement Division, which no longer exists) may remain until 
such time as the posting is replaced for any other purpose. Any posting 
made after the effective date of this amendment must display the updated 
address (i.e., the address of the Consumer Information Bureau).
    (c) Updating of postings. The posting required by this section shall 
be updated as soon as practicable following any change of the carrier 
presubscribed to provide interstate service at an aggregator location, 
but no later than 30 days following such change. This requirement may be 
satisfied by applying to a payphone a temporary sticker displaying the 
required posting information, provided that any such temporary sticker 
shall be replaced with permanent signage during the next regularly 
scheduled maintenance visit.
    (d) Effect of state law or regulation. The requirements of paragraph 
(b) of this section shall not apply to an aggregator in any case in 
which State law or State regulation requires the aggregator to take 
actions that are substantially the same as those required in paragraph 
(b) of this section.
    (e) Each provider of operator services shall ensure, by contract or 
tariff, that each aggregator for which such provider is the 
presubscribed provider of operator services is in compliance with the 
requirements of paragraph (b) of this section.

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



Sec. 64.704  Call blocking prohibited.

    (a) Each aggregator shall ensure that each of its telephones 
presubscribed to a provider of operator services allows the consumer to 
use ``800'' and ``950'' access code numbers to obtain access to the 
provider of operator services desired by the consumer.
    (b) Each provider of operator services shall:
    (1) Ensure, by contract or tariff, that each aggregator for which 
such provider is the presubscribed provider of operator services is in 
compliance with the requirements of paragraphs (a) and (c) of this 
section; and
    (2) Withhold payment (on a location-by-location basis) of any 
compensation, including commissions, to aggregators if such provider 
reasonably believes that the aggregator is blocking access to interstate 
common carriers in violation of paragraphs (a) or (c) of this section.
    (c) Each aggregator shall, by the earliest applicable date set forth 
in this paragraph, ensure that any of its equipment presubscribed to a 
provider of operator services allows the consumer to use equal access 
codes to obtain access to the consumer's desired provider of operator 
services.
    (1) Each pay telephone shall, within six (6) months of the effective 
date of this paragraph, allow the consumer to use equal access codes to 
obtain access to the consumer's desired provider of operator services.
    (2) All equipment that is technologically capable of identifying the 
dialing of an equal access code followed by any sequence of numbers that 
will result in billing to the originating telephone and that is 
technologically capable of blocking access through such dialing 
sequences without blocking access through other dialing sequences 
involving equal access codes, shall, within six (6) months of the 
effective

[[Page 358]]

date of this paragraph or upon installation, whichever is sooner, allow 
the consumer to use equal access codes to obtain access to the 
consumer's desired provider of operator services.
    (3) All equipment or software that is manufactured or imported on or 
after April 17, 1992, and installed by any aggregator shall, immediately 
upon installation by the aggregator, allow the consumer to use equal 
access codes to obtain access to the consumer's desired provider of 
operator services.
    (4) All equipment that can be modified at a cost of no more than 
$15.00 per line to be technologically capable of identifying the dialing 
of an equal access code followed by any sequence of numbers that will 
result in billing to the originating telephone and to be technologically 
capable of blocking access through such dialing sequences without 
blocking access through other dialing sequences involving equal access 
codes, shall, within eighteen (18) months of the effective date of this 
paragraph, allow the consumer to use equal access codes to obtain access 
to the consumer's desired provider of operator services.
    (5) All equipment not included in paragraphs (c)(1), (c)(2), (c)(3), 
or (c)(4) of this section shall, no later than April 17, 1997, allow the 
consumer to use equal access codes to obtain access to the consumer's 
desired provider of operator services.
    (6) This paragraph does not apply to the use by consumers of equal 
access code dialing sequences that result in billing to the originating 
telephone.
    (d) All providers of operator services, except those employing a 
store-and-forward device that serves only consumers at the location of 
the device, shall establish an ``800'' or ``950'' access code number 
within six (6) months of the effective date of this paragraph.
    (e) The requirements of this section shall not apply to CMRS 
aggregators and providers of CMRS operator services.

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



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

services.

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

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



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

telephone calls.

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

[61 FR 14981, Apr. 4, 1996]

[[Page 359]]



Sec. 64.707  Public dissemination of information by providers of operator 

services.

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

[56 FR 18524, Apr. 23, 1991]



Sec. 64.708  Definitions.

    As used in Sec. Sec. 64.703 through 64.707 of this part and Sec. 
68.318 of this chapter (47 CFR 64.703-64.707, 68.318):
    (a) Access code means a sequence of numbers that, when dialed, 
connect the caller to the provider of operator services associated with 
that sequence;
    (b) Aggregator means any person that, in the ordinary course of its 
operations, makes telephones available to the public or to transient 
users of its premises, for interstate telephone calls using a provider 
of operator services;
    (c) Call splashing means the transfer of a telephone call from one 
provider of operator services to another such provider in such a manner 
that the subsequent provider is unable or unwilling to determine the 
location of the origination of the call and, because of such inability 
or unwillingness, is prevented from billing the call on the basis of 
such location;
    (d) CMRS aggregator means an aggregator that, in the ordinary course 
of its operations, makes telephones available to the public or to 
transient users of its premises for interstate telephone calls using a 
provider of CMRS operator services;
    (e) CMRS operator services means operator services provided by means 
of a commercial mobile radio service as defined in section 20.3 of this 
chapter.
    (f) Consumer means a person initiating any interstate telephone call 
using operator services. In collect calling arrangements handled by a 
provider of operator services, the term consumer also includes the party 
on the terminating end of the call. For bill-to-third-party calling 
arrangements handled by a provider of operator services, the term 
consumer also includes the party to be billed for the call if the latter 
is contacted by the operator service provider to secure billing 
approval.
    (g) Equal access has the meaning given that term in Appendix B of 
the Modification of Final Judgment entered by the United States District 
Court on August 24, 1982, in United States v. Western Electric, Civil 
Action No. 82-0192 (D.D.C. 1982), as amended by the Court in its orders 
issued prior to October 17, 1990;
    (h) Equal access code means an access code that allows the public to 
obtain an equal access connection to the carrier associated with that 
code;
    (i) Operator services means any interstate telecommunications 
service initiated from an aggregator location that includes, as a 
component, any automatic or live assistance to a consumer to arrange for 
billing or completion, or both, of an interstate telephone call through 
a method other than:
    (1) Automatic completion with billing to the telephone from which 
the call originated; or
    (2) Completion through an access code used by the consumer, with 
billing to an account previously established with the carrier by the 
consumer;
    (j) Presubscribed provider of operator services means the interstate 
provider of operator services to which the consumer is connected when 
the consumer places a call using a provider of operator services without 
dialing an access code;
    (k) Provider of CMRS operator services means a provider of operator 
services that provides CMRS operator services;
    (l) Provider of operator services means any common carrier that 
provides operator services or any other person determined by the 
Commission to be providing operator services.

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



Sec. 64.709  Informational tariffs.

    (a) Informational tariffs filed pursuant to 47 U.S.C. 226(h)(1)(A) 
shall contain specific rates expressed in dollars and cents for each 
interstate operator service of the carrier and shall also contain 
applicable per call aggregator surcharges or other per-call fees, if

[[Page 360]]

any, collected from consumers by, or on behalf of, the carrier.
    (b) Per call fees, if any, billed on behalf of aggregators or 
others, shall be specified in informational tariffs in dollars and 
cents.
    (c) In order to remove all doubt as to their proper application, all 
informational tariffs must contain clear and explicit explanatory 
statements regarding the rates, i.e., the tariffed price per unit of 
service, and the regulations governing the offering of service in that 
tariff.
    (d) Informational tariffs shall be accompanied by a cover letter, 
addressed to the Secretary of the Commission, explaining the purpose of 
the filing.
    (1) The original of the cover letter shall be submitted to the 
Secretary without attachments, along with FCC Form 159, and the 
appropriate fee to the address set forth in Sec. 1.1105 of this 
chapter.
    (2) Carriers should file informational tariffs and associated 
documents, such as cover letters and attachments, electronically in 
accordance with Sec. Sec. 61.13 and 61.14 of this chapter.
    (e) Any changes to the tariff shall be submitted under a new cover 
letter with a complete copy of the tariff, including changes.
    (1) Changes to a tariff shall be explained in the cover letter but 
need not be symbolized on the tariff pages.
    (2) Revised tariffs shall be filled pursuant to the procedures 
specified in this section.

[63 FR 11617, Mar. 10, 1998; 63 FR 15316, Mar. 31, 1998, as amended at 
67 FR 2820, Jan. 22, 2002; 73 FR 9031, Feb. 19, 2008; 76 FR 43217, July 
20, 2011]



Sec. 64.710  Operator services for prison inmate phones.

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

[[Page 361]]

    (4) Provider of inmate operator services means any common carrier 
that provides outbound interstate operator services from inmate 
telephones.

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



   Subpart H_Extension of Unsecured Credit for Interstate and Foreign 

        Communications Services to Candidates for Federal Office

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

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



Sec. 64.801  Purpose.

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



Sec. 64.802  Applicability.

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



Sec. 64.803  Definitions.

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



Sec. 64.804  Rules governing the extension of unsecured credit to candidates 

or persons on behalf of such candidates for Federal office for interstate and 

foreign common carrier communication services.

    (a) There is no obligation upon a carrier to extend unsecured credit 
for interstate and foreign communication services to a candidate or 
person on behalf of such candidate for Federal office. However, if the 
carrier chooses to extend such unsecured credit, it shall comply with 
the requirements set forth in paragraphs (b) through (g) of this 
section.
    (b) If a carrier decides to extend unsecured credit to any candidate 
for Federal office or any person on behalf of such candidate, then 
unsecured credit shall be extended on substantially equal terms and 
conditions to all candidates and all persons on behalf of all candidates 
for the same office, with due regard for differences in the estimated 
quantity of service to be furnished each such candidate or person.
    (c) Before extending unsecured credit, a carrier shall obtain a 
signed written application for service which shall identify the 
applicant and the candidate and state whether or not the candidate 
assumes responsibility for

[[Page 362]]

the charges, and which shall also expressly state as follows:
    (1) That service is being requested by the applicant or applicants 
and that the person or persons making the application will be 
individually, jointly and severally liable for the payment of all 
charges; and
    (2) That the applicant(s) understands that the carrier will (under 
the provisions of paragraph (d) of this section) discontinue service 
upon written notice if any amount due is not paid upon demand.
    (d) If charges for services rendered are not paid to the carrier 
within 15 days from rendition of a bill therefor, the carrier shall 
forthwith at the end of the 15-day period serve written notice on the 
applicant of intent to discontinue service within 7 days of date of such 
notice for nonpayment and shall discontinue service at the end of the 7-
day period unless all such sums due are paid in full within such 7-day 
period.
    (e) Each carrier shall take appropriate action at law to collect any 
unpaid balance on an account for interstate and foreign communication 
services rendered to a candidate or person on behalf of such candidate 
prior to the expiration of the statute of limitations under section 
415(a) of the Communications Act of 1934, as amended.
    (f) The records of each account, involving the extension by a 
carrier of unsecured credit to a candidate or person on behalf of such 
candidate for common carrier communications services shall be maintained 
by the carrier so as to show separately, for interstate and foreign 
communication services all charges, credits, adjustments, and security, 
if any, and balance receivable.
    (g) On or before January 31, 1973, and on corresponding dates of 
each year thereafter, each carrier which had operating revenues in the 
preceding year in excess of $1 million shall file with the Commission a 
report by account of any amount due and unpaid, as of the end of the 
month prior to the reporting date, for interstate and foreign 
communications services to a candidate or person on behalf of such 
candidate when such amount results from the extension of unsecured 
credit. Each report shall include the following information:
    (1) Name of candidate.
    (2) Name and address of person or persons applying for service.
    (3) Balance due carrier.
    (4) Reason for nonpayment.
    (5) Payment arrangements, if any.
    (6) Date service discontinued.
    (7) Date, nature and status of any action taken at law in compliance 
with paragraph (e) of this section.

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



                      Subpart I_Allocation of Costs



Sec. 64.901  Allocation of costs.

    (a) Carriers required to separate their regulated costs from 
nonregulated costs shall use the attributable cost method of cost 
allocation for such purpose.
    (b) In assigning or allocating costs to regulated and nonregulated 
activities, carriers shall follow the principles described herein.
    (1) Tariffed services provided to a nonregulated activity will be 
charged to the nonregulated activity at the tariffed rates and credited 
to the regulated revenue account for that service. Nontariffed services, 
offered pursuant to a section 252(e) agreement, provided to a 
nonregulated activity will be charged to the nonregulated activity at 
the amount set forth in the applicable interconnection agreement 
approved by a state commission pursuant to section 252(e) and credited 
to the regulated revenue account for that service.
    (2) Costs shall be directly assigned to either regulated or 
nonregulated activities whenever possible.
    (3) Costs which cannot be directly assigned to either regulated or 
nonregulated activities will be described as common costs. Common costs 
shall be grouped into homogeneous cost categories designed to facilitate 
the proper allocation of costs between a carrier's regulated and 
nonregulated activities. Each cost category shall be allocated between 
regulated and nonregulated activities in accordance with the following 
hierarchy:
    (i) Whenever possible, common cost categories are to be allocated 
based

[[Page 363]]

upon direct analysis of the origin of the cost themselves.
    (ii) When direct analysis is not possible, common cost categories 
shall be allocated based upon an indirect, cost-causative linkage to 
another cost category (or group of cost categories) for which a direct 
assignment or allocation is available.
    (iii) When neither direct nor indirect measures of cost allocation 
can be found, the cost category shall be allocated based upon a general 
allocator computed by using the ratio of all expenses directly assigned 
or attributed to regulated and nonregulated activities.
    (4) The allocation of central office equipment and outside plant 
investment costs between regulated and nonregulated activities shall be 
based upon the relative regulated and nonregulated usage of the 
investment during the calendar year when nonregulated usage is greatest 
in comparison to regulated usage during the three calendar years 
beginning with the calendar year during which the investment usage 
forecast is filed.
    (c) A telecommunications carrier may not use services that are not 
competitive to subsidize services subject to competition. Services 
included in the definition of universal service shall bear no more than 
a reasonable share of the joint and common costs of facilities used to 
provide those services.

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



Sec. 64.902  Transactions with affiliates.

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

[55 FR 30461, July 26, 1990]



Sec. 64.903  Cost allocation manuals.

    (a) Each incumbent local exchange carrier having annual revenues 
from regulated telecommunications operations that are equal to or above 
the indexed revenue threshold (as defined in Sec. 32.9000 of this 
chapter) except mid-sized incumbent local exchange carriers is required 
to file a cost allocation manual describing how it separates regulated 
from nonregulated costs. The manual shall contain the following 
information regarding the carrier's allocation of costs between 
regulated and nonregulated activities:
    (1) A description of each of the carrier's nonregulated activities;
    (2) A list of all the activities to which the carrier now accords 
incidental accounting treatment and the justification therefor;
    (3) A chart showing all of the carrier's corporate affiliates;
    (4) A statement identifying each affiliate that engages in or will 
engage in transactions with the carrier and describing the nature, terms 
and frequency of each transaction;
    (5) A cost apportionment table showing, for each account containing 
costs incurred in providing regulated services, the cost pools with that 
account, the procedures used to place costs into each cost pool, and the 
method used to apportion the costs within each cost pool between 
regulated and nonregulated activities; and
    (6) A description of the time reporting procedures that the carrier 
uses, including the methods or studies designed to measure and allocate 
non-productive time.
    (b) Each carrier shall ensure that the information contained in its 
cost allocation manual is accurate. Carriers must update their cost 
allocation manuals at least annually, except that changes to the cost 
apportionment table and to the description of time reporting procedures 
must be filed at the time of implementation. Annual cost allocation 
manual updates shall be filed on or before the last working day of each 
calendar year. Proposed changes in the description of time reporting 
procedures, the statement concerning affiliate transactions, and the 
cost apportionment table must be accompanied by a statement quantifying 
the impact of each change on regulated operations. Changes in the 
description of time reporting procedures and the statement concerning 
affiliate transactions must be quantified in $100,000 increments at the 
account level. Changes in cost apportionment tables

[[Page 364]]

must be quantified in $100,000 increments at the cost pool level. The 
Chief, Wireline Competition Bureau may suspend any such changes for a 
period not to exceed 180 days, and may thereafter allow the change to 
become effective or prescribe a different procedure.
    (c) The Commission may by order require any other communications 
common carrier to file and maintain a cost allocation manual as provided 
in this section.

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



Sec. 64.904  Independent audits.

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

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



Sec. 64.905  Annual certification.

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

[67 FR 5702, Feb. 6, 2002]

Subpart J [Reserved]



   Subpart K_Changes in Preferred Telecommunications Service Providers



Sec. 64.1100  Definitions.

    (a) The term submitting carrier is generally any telecommunications 
carrier that requests on the behalf of a subscriber that the 
subscriber's telecommunications carrier be changed, and seeks to provide 
retail services to the end user subscriber. A carrier may be treated as 
a submitting carrier, however, if it is responsible for any unreasonable 
delays in the submission of

[[Page 365]]

carrier change requests or for the submission of unauthorized carrier 
change requests, including fraudulent authorizations.
    (b) The term executing carrier is generally any telecommunications 
carrier that effects a request that a subscriber's telecommunications 
carrier be changed. A carrier may be treated as an executing carrier, 
however, if it is responsible for any unreasonable delays in the 
execution of carrier changes or for the execution of unauthorized 
carrier changes, including fraudulent authorizations.
    (c) The term authorized carrier is generally any telecommunications 
carrier that submits a change, on behalf of a subscriber, in the 
subscriber's selection of a provider of telecommunications service with 
the subscriber's authorization verified in accordance with the 
procedures specified in this part.
    (d) The term unauthorized carrier is generally any 
telecommunications carrier that submits a change, on behalf of a 
subscriber, in the subscriber's selection of a provider of 
telecommunications service but fails to obtain the subscriber's 
authorization verified in accordance with the procedures specified in 
this part.
    (e) The term unauthorized change is a change in a subscriber's 
selection of a provider of telecommunications service that was made 
without authorization verified in accordance with the verification 
procedures specified in this part.
    (f) The term state commission shall include any state entity with 
the state-designated authority to resolve the complaints of such state's 
residents arising out of an allegation that an unauthorized change of a 
telecommunication service provider has occurred that has elected, in 
accordance with the requirements of Sec. 64.1110(a), to administer the 
Federal Communications Commission's slamming rules and remedies, as 
enumerated in Sec. Sec. 64.1100 through 64.1190.
    (g) The term relevant governmental agency shall be the state 
commission if the complainant files a complaint with the state 
commission or if the complaint is forwarded to the state commission by 
the Federal Communications Commission, and the Federal Communications 
Commission if the complainant files a complaint with the Federal 
Communications Commission, and the complaint is not forwarded to a state 
commission.
    (h) The term subscriber is any one of the following:
    (1) The party identified in the account records of a common carrier 
as responsible for payment of the telephone bill;
    (2) Any adult person authorized by such party to change 
telecommunications services or to charge services to the account; or
    (3) Any person contractually or otherwise lawfully authorized to 
represent such party.

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



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

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

[65 FR 47691, Aug. 3, 2000, as amended at 73 FR 13149, Mar. 12, 2008]

[[Page 366]]



Sec. 64.1120  Verification of orders for telecommunications service.

    (a) No telecommunications carrier shall submit or execute a change 
on the behalf of a subscriber in the subscriber's selection of a 
provider of telecommunications service except in accordance with the 
procedures prescribed in this subpart. Nothing in this section shall 
preclude any State commission from enforcing these procedures with 
respect to intrastate services.
    (1) No submitting carrier shall submit a change on the behalf of a 
subscriber in the subscriber's selection of a provider of 
telecommunications service prior to obtaining:
    (i) Authorization from the subscriber, and
    (ii) Verification of that authorization in accordance with the 
procedures prescribed in this section. The submitting carrier shall 
maintain and preserve records of verification of subscriber 
authorization for a minimum period of two years after obtaining such 
verification.
    (2) An executing carrier shall not verify the submission of a change 
in a subscriber's selection of a provider of telecommunications service 
received from a submitting carrier. For an executing carrier, compliance 
with the procedures described in this part shall be defined as prompt 
execution, without any unreasonable delay, of changes that have been 
verified by a submitting carrier.
    (3) Commercial mobile radio services (CMRS) providers shall be 
excluded from the verification requirements of this part as long as they 
are not required to provide equal access to common carriers for the 
provision of telephone toll services, in accordance with 47 U.S.C. 
332(c)(8).
    (b) Where a telecommunications carrier is selling more than one type 
of telecommunications service (e.g., local exchange, intraLATA toll, and 
interLATA toll), that carrier must obtain separate authorization from 
the subscriber for each service sold, although the authorizations may be 
obtained within the same solicitation. Each authorization must be 
verified separately from any other authorizations obtained in the same 
solicitation. Each authorization must be verified in accordance with the 
verification procedures prescribed in this part.
    (c) No telecommunications carrier shall submit a preferred carrier 
change order unless and until the order has been confirmed in accordance 
with one of the following procedures:
    (1) The telecommunications carrier has obtained the subscriber's 
written or electronically signed authorization in a form that meets the 
requirements of Sec. 64.1130; or
    (2) The telecommunications carrier has obtained the subscriber's 
electronic authorization to submit the preferred carrier change order. 
Such authorization must be placed from the telephone number(s) on which 
the preferred carrier is to be changed and must confirm the information 
in paragraph (a)(1) of this section. Telecommunications carriers 
electing to confirm sales electronically shall establish one or more 
toll-free telephone numbers exclusively for that purpose. Calls to the 
number(s) will connect a subscriber to a voice response unit, or similar 
mechanism, that records the required information regarding the preferred 
carrier change, including automatically recording the originating 
automatic number identification; or
    (3) An appropriately qualified independent third party has obtained, 
in accordance with the procedures set forth in paragraphs (c)(3)(i) 
through (c)(3)(iv) of this section, the subscriber's oral authorization 
to submit the preferred carrier change order that confirms and includes 
appropriate verification data (e.g., the subscriber's date of birth or 
social security number). The independent third party must not be owned, 
managed, controlled, or directed by the carrier or the carrier's 
marketing agent; must not have any financial incentive to confirm 
preferred carrier change orders for the carrier or the carrier's 
marketing agent; and must operate in a location physically separate from 
the carrier or the carrier's marketing agent.
    (i) Methods of third party verification. Automated third party 
verification systems and three-way conference calls may be used for 
verification purposes

[[Page 367]]

so long as the requirements of paragraphs (c)(3)(ii) through (c)(3)(iv) 
of this section are satisfied.
    (ii) Carrier initiation of third party verification. A carrier or a 
carrier's sales representative initiating a three-way conference call or 
a call through an automated verification system must drop off the call 
once the three-way connection has been established.
    (iii) Requirements for content and format of third party 
verification. Any description of the carrier change transaction by a 
third party verifier must not be misleading, and all third party 
verification methods shall elicit, at a minimum: The date of the 
verification; the identity of the subscriber; confirmation that the 
person on the call is authorized to make the carrier change; 
confirmation that the person on the call wants to make the carrier 
change; confirmation that the person on the call understands that a 
carrier change, not an upgrade to existing service, bill consolidation, 
or any other misleading description of the transaction, is being 
authorized; the names of the carriers affected by the change (not 
including the name of the displaced carrier); the telephone numbers to 
be switched; and the types of service involved (including a brief 
description of a service about which the subscriber demonstrates 
confusion regarding the nature of that service). Except in Hawaii, any 
description of interLATA or long distance service shall convey that it 
encompasses both international and state-to-state calls, as well as some 
intrastate calls where applicable. If the subscriber has additional 
questions for the carrier's sales representative during the 
verification, the verifier shall indicate to the subscriber that, upon 
completion of the verification process, the subscriber will have 
authorized a carrier change. Third party verifiers may not market the 
carrier's services by providing additional information, including 
information regarding preferred carrier freeze procedures.
    (iv) Other requirements for third party verification. All third 
party verifications shall be conducted in the same language that was 
used in the underlying sales transaction and shall be recorded in their 
entirety. In accordance with the procedures set forth in 
64.1120(a)(1)(ii), submitting carriers shall maintain and preserve audio 
records of verification of subscriber authorization for a minimum period 
of two years after obtaining such verification. Automated systems must 
provide consumers with an option to speak with a live person at any time 
during the call.
    (4) Any State-enacted verification procedures applicable to 
intrastate preferred carrier change orders only.
    (d) Telecommunications carriers must provide subscribers the option 
of using one of the authorization and verification procedures specified 
in Sec. 64.1120(c) in addition to an electronically signed 
authorization and verification procedure under 64.1120(c)(1).
    (e) A telecommunications carrier may acquire, through a sale or 
transfer, either part or all of another telecommunica- tions carrier's 
subscriber base without obtaining each subscriber's authorization and 
verification in accordance with Sec. 64.1120(c), provided that the 
acquiring carrier complies with the following streamlined procedures. A 
telecommunications carrier may not use these streamlined procedures for 
any fraudulent purpose, including any attempt to avoid liability for 
violations under part 64, subpart K of the Commission rules.
    (1) No later than 30 days before the planned transfer of the 
affected subscribers from the selling or transferring carrier to the 
acquiring carrier, the acquiring carrier shall file with the 
Commission's Office of the Secretary a letter notification in CC Docket 
No. 00-257 providing the names of the parties to the transaction, the 
types of telecommunications services to be provided to the affected 
subscribers, and the date of the transfer of the subscriber base to the 
acquiring carrier. In the letter notification, the acquiring carrier 
also shall certify compliance with the requirement to provide advance 
subscriber notice in accordance with Sec. 64.1120(e)(3), with the 
obligations specified in that notice, and with other statutory and 
Commission requirements that apply to this streamlined

[[Page 368]]

process. In addition, the acquiring carrier shall attach a copy of the 
notice sent to the affected subscribers.
    (2) If, subsequent to the filing of the letter notification with the 
Commission required by Sec. 64.1120(e)(1), any material changes to the 
required information should develop, the acquiring carrier shall file 
written notification of these changes with the Commission no more than 
10 days after the transfer date announced in the prior notification. The 
Commission reserves the right to require the acquiring carrier to send 
an additional notice to the affected subscribers regarding such material 
changes.
    (3) Not later than 30 days before the transfer of the affected 
subscribers from the selling or transferring carrier to the acquiring 
carrier, the acquiring carrier shall provide written notice to each 
affected subscriber of the information specified. The acquiring carrier 
is required to fulfill the obligations set forth in the advance 
subscriber notice. The advance subscriber notice shall be provided in a 
manner consistent with 47 U.S.C. 255 and the Commission's rules 
regarding accessibility to blind and visually-impaired consumers, 47 CFR 
6.3, 6.5 of this chapter. The following information must be included in 
the advance subscriber notice:
    (i) The date on which the acquiring carrier will become the 
subscriber's new provider of telecommunications service,
    (ii) The rates, terms, and conditions of the service(s) to be 
provided by the acquiring carrier upon the subscriber's transfer to the 
acquiring carrier, and the means by which the acquiring carrier will 
notify the subscriber of any change(s) to these rates, terms, and 
conditions.
    (iii) The acquiring carrier will be responsible for any carrier 
change charges associated with the transfer, except where the carrier is 
acquiring customers by default, other than through bankruptcy, and state 
law requires the exiting carrier to pay these costs;
    (iv) The subscriber's right to select a different preferred carrier 
for the telecommunications service(s) at issue, if an alternative 
carrier is available,
    (v) All subscribers receiving the notice, even those who have 
arranged preferred carrier freezes through their local service providers 
on the service(s) involved in the transfer, will be transferred to the 
acquiring carrier, unless they have selected a different carrier before 
the transfer date; existing preferred carrier freezes on the service(s) 
involved in the transfer will be lifted; and the subscribers must 
contact their local service providers to arrange a new freeze.
    (vi) Whether the acquiring carrier will be responsible for handling 
any complaints filed, or otherwise raised, prior to or during the 
transfer against the selling or transferring carrier, and
    (vii) The toll-free customer service telephone number of the 
acquiring carrier.

[65 FR 47691, Aug. 3, 2000, as amended at 66 FR 12892, Mar. 1, 2001; 66 
FR 28124, May 22, 2001; 68 FR 19159, Apr. 18, 2003; 70 FR 12611, Mar. 
15, 2005; 73 FR 13149, Mar. 12, 2008]



Sec. 64.1130  Letter of agency form and content.

    (a) A telecommunications carrier may use a written or electronically 
signed letter of agency to obtain authorization and/or verification of a 
subscriber's request to change his or her preferred carrier selection. A 
letter of agency that does not conform with this section is invalid for 
purposes of this part.
    (b) The letter of agency shall be a separate document (or an easily 
separable document) or located on a separate screen or webpage 
containing only the authorizing language described in paragraph (e) of 
this section having the sole purpose of authorizing a telecommunications 
carrier to initiate a preferred carrier change. The letter of agency 
must be signed and dated by the subscriber to the telephone line(s) 
requesting the preferred carrier change.
    (c) The letter of agency shall not be combined on the same document, 
screen, or webpage with inducements of any kind.
    (d) Notwithstanding paragraphs (b) and (c) of this section, the 
letter of agency may be combined with checks that contain only the 
required letter of

[[Page 369]]

agency language as prescribed in paragraph (e) of this section and the 
necessary information to make the check a negotiable instrument. The 
letter of agency check shall not contain any promotional language or 
material. The letter of agency check shall contain in easily readable, 
bold-face type on the front of the check, a notice that the subscriber 
is authorizing a preferred carrier change by signing the check. The 
letter of agency language shall be placed near the signature line on the 
back of the check.
    (e) At a minimum, the letter of agency must be printed with a type 
of sufficient size and readable type to be clearly legible and must 
contain clear and unambiguous language that confirms:
    (1) The subscriber's billing name and address and each telephone 
number to be covered by the preferred carrier change order;
    (2) The decision to change the preferred carrier from the current 
telecommunications carrier to the soliciting telecommunications carrier;
    (3) That the subscriber designates [insert the name of the 
submitting carrier] to act as the subscriber's agent for the preferred 
carrier change;
    (4) That the subscriber understands that only one telecommunications 
carrier may be designated as the subscriber's interstate or interLATA 
preferred interexchange carrier for any one telephone number. To the 
extent that a jurisdiction allows the selection of additional preferred 
carriers (e.g., local exchange, intraLATA toll, interLATA toll, or 
international interexchange), the letter of agency must contain separate 
statements regarding those choices, although a separate letter of agency 
for each choice is not necessary; and
    (5) That the subscriber may consult with the carrier as to whether a 
fee will apply to the change in the subscriber's preferred carrier.
    (f) Any carrier designated in a letter of agency as a preferred 
carrier must be the carrier directly setting the rates for the 
subscriber.
    (g) Letters of agency shall not suggest or require that a subscriber 
take some action in order to retain the subscriber's current 
telecommunications carrier.
    (h) If any portion of a letter of agency is translated into another 
language then all portions of the letter of agency must be translated 
into that language. Every letter of agency must be translated into the 
same language as any promotional materials, oral descriptions or 
instructions provided with the letter of agency.
    (i) Letters of agency submitted with an electronically signed 
authorization must include the consumer disclosures required by Section 
101(c) of the Electronic Signatures in Global and National Commerce Act.
    (j) A telecommunications carrier shall submit a preferred carrier 
change order on behalf of a subscriber within no more than 60 days of 
obtaining a written or electronically signed letter of agency. However, 
letters of agency for multi-line and/or multi-location business 
customers that have entered into negotiated agreements with carriers to 
add presubscribed lines to their business locations during the course of 
a term agreement shall be valid for the period specified in the term 
agreement.

[64 FR 7760, Feb. 16, 1999. Redesignated at 65 FR 47692, Aug. 3, 2000, 
as amended at 66 FR 12893, Mar. 1, 2001; 66 FR 16151, Mar. 23, 2001; 68 
FR 19159, Apr. 18, 2003; 73 FR 13149, Mar. 12, 2008]



Sec. 64.1140  Carrier liability for slamming.

    (a) Carrier Liability for Charges. Any submitting telecommunications 
carrier that fails to comply with the procedures prescribed in this part 
shall be liable to the subscriber's properly authorized carrier in an 
amount equal to 150% of all charges paid to the submitting 
telecommunications carrier by such subscriber after such violation, as 
well as for additional amounts as prescribed in Sec. 64.1170. The 
remedies provided in this part are in addition to any other remedies 
available by law.
    (b) Subscriber Liability for Charges. Any subscriber whose selection 
of telecommunications services provider is changed without authorization 
verified in accordance with the procedures set for in this part is 
liable for charges as follows:

[[Page 370]]

    (1) If the subscriber has not already paid charges to the 
unauthorized carrier, the subscriber is absolved of liability for 
charges imposed by the unauthorized carrier for service provided during 
the first 30 days after the unauthorized change. Upon being informed by 
a subscriber that an unauthorized change has occurred, the authorized 
carrier, the unauthorized carrier, or the executing carrier shall inform 
the subscriber of this 30-day absolution period. Any charges imposed by 
the unauthorized carrier on the subscriber for service provided after 
this 30-day period shall be paid by the subscriber to the authorized 
carrier at the rates the subscriber was paying to the authorized carrier 
at the time of the unauthorized change in accordance with the provisions 
of Sec. 64.1160(e).
    (2) If the subscriber has already paid charges to the unauthorized 
carrier, and the authorized carrier receives payment from the 
unauthorized carrier as provided for in paragraph (a) of this section, 
the authorized carrier shall refund or credit to the subscriber any 
amounts determined in accordance with the provisions of Sec. 
64.1170(c).
    (3) If the subscriber has been absolved of liability as prescribed 
by this section, the unauthorized carrier shall also be liable to the 
subscriber for any charge required to return the subscriber to his or 
her properly authorized carrier, if applicable.

[65 FR 47691, Aug. 3, 2000]



Sec. 64.1150  Procedures for resolution of unauthorized changes in preferred 

carrier.

    (a) Notification of alleged unauthorized carrier change. Executing 
carriers who are informed of an unauthorized carrier change by a 
subscriber must immediately notify both the authorized and allegedly 
unauthorized carrier of the incident. This notification must include the 
identity of both carriers.
    (b) Referral of complaint. Any carrier, executing, authorized, or 
allegedly unauthorized, that is informed by a subscriber or an executing 
carrier of an unauthorized carrier change shall direct that subscriber 
either to the state commission or, where the state commission has not 
opted to administer these rules, to the Federal Communications 
Commission's Consumer & Governmental Affairs Bureau, for resolution of 
the complaint. Carriers shall also inform the subscriber that he or she 
may contact and seek resolution from the alleged unauthorized carrier 
and, in addition, may contact the authorized carrier.
    (c) Notification of receipt of complaint. Upon receipt of an 
unauthorized carrier change complaint, the relevant governmental agency 
will notify the allegedly unauthorized carrier of the complaint and 
order that the carrier remove all unpaid charges for the first 30 days 
after the slam from the subscriber's bill pending a determination of 
whether an unauthorized change, as defined by Sec. 64.1100(e), has 
occurred, if it has not already done so.
    (d) Proof of verification. Not more than 30 days after notification 
of the complaint, or such lesser time as is required by the state 
commission if a matter is brought before a state commission, the alleged 
unauthorized carrier shall provide to the relevant government agency a 
copy of any valid proof of verification of the carrier change. This 
proof of verification must contain clear and convincing evidence of a 
valid authorized carrier change, as that term is defined in Sec. Sec. 
64.1120 through 64.1130. The relevant governmental agency will determine 
whether an unauthorized change, as defined by Sec. 64.1100(e), has 
occurred using such proof and any evidence supplied by the subscriber. 
Failure by the carrier to respond or provide proof of verification will 
be presumed to be clear and convincing evidence of a violation.
    (e) Election of forum. The Federal Communications Commission will 
not adjudicate a complaint filed pursuant to Sec. 1.719 or Sec. Sec. 
1.720 through 1.736 of this chapter, involving an alleged unauthorized 
change, as defined by Sec. 64.1100(e), while a complaint based on the 
same set of facts is pending with a state commission.

[65 FR 47692, Aug. 3, 2000, as amended at 68 FR 19159, Apr. 18, 2003; 73 
FR 13149, Mar. 12, 2008]

[[Page 371]]



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

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

[[Page 372]]

shall switch the subscriber to the desired carrier at no cost to the 
subscriber, and shall also secure the removal of the unauthorized 
charges from the subscriber's bill in accordance with the procedures 
specified in paragraphs (a) through (f) of this section.

[65 FR 47692, Aug. 3, 2000, as amended at 68 FR 19159, Apr. 18, 2003; 73 
FR 13149, Mar. 12, 2008]



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

    (a) The procedures in this section shall only apply after a 
subscriber has determined that an unauthorized change, as defined by 
Sec. 64.1100(e), has occurred and the subscriber has paid charges to an 
allegedly unauthorized carrier.
    (b) If the relevant governmental agency determines after reasonable 
investigation that an unauthorized change, as defined by Sec. 
64.1100(e), has occurred, it shall issue an order directing the 
unauthorized carrier to forward to the authorized carrier the following, 
in addition to any appropriate state remedies:
    (1) An amount equal to 150% of all charges paid by the subscriber to 
the unauthorized carrier; and
    (2) Copies of any telephone bills issued from the unauthorized 
carrier to the subscriber. This order shall be sent to the subscriber, 
the unauthorized carrier, and the authorized carrier.
    (c) Within ten days of receipt of the amount provided for in 
paragraph (b)(1) of this section, the authorized carrier shall provide a 
refund or credit to the subscriber in the amount of 50% of all charges 
paid by the subscriber to the unauthorized carrier. The subscriber has 
the option of asking the authorized carrier to re-rate the unauthorized 
carrier's charges based on the rates of the authorized carrier and, on 
behalf of the subscriber, seek an additional refund from the 
unauthorized carrier, to the extent that the re-rated amount exceeds the 
50% of all charges paid by the subscriber to the unauthorized carrier. 
The authorized carrier shall also send notice to the relevant 
governmental agency that it has given a refund or credit to the 
subscriber.
    (d) If an authorized carrier incurs billing and collection expenses 
in collecting charges from the unauthorized carrier, the unauthorized 
carrier shall reimburse the authorized carrier for reasonable expenses.
    (e) If the authorized carrier has not received payment from the 
unauthorized carrier as required by paragraph (c) of this section, the 
authorized carrier is not required to provide any refund or credit to 
the subscriber. The authorized carrier must, within 45 days of receiving 
an order as described in paragraph (b) of this section, inform the 
subscriber and the relevant governmental agency that issued the order if 
the unauthorized carrier has failed to forward to it the appropriate 
charges, and also inform the subscriber of his or her right to pursue a 
claim against the unauthorized carrier for a refund of all charges paid 
to the unauthorized carrier.
    (f) Where possible, the properly authorized carrier must reinstate 
the subscriber in any premium program in which that subscriber was 
enrolled prior to the unauthorized change, if the subscriber's 
participation in that program was terminated because of the unauthorized 
change. If the subscriber has paid charges to the unauthorized carrier, 
the properly authorized carrier shall also provide or restore to the 
subscriber any premiums to which the subscriber would have been entitled 
had the unauthorized change not occurred. The authorized carrier must 
comply with the requirements of this section regardless of whether it is 
able to recover from the unauthorized carrier any charges that were paid 
by the subscriber.
    (g) When a LEC has assigned a subscriber to a non-affiliated carrier 
without authorization, and when a subscriber has paid the non-affiliated 
carrier the charges for the billed service, the LEC shall reimburse the 
subscriber for all charges paid by the subscriber to the unauthorized 
carrier and shall switch the subscriber to the desired carrier at no 
cost to the subscriber. When a LEC makes an unauthorized carrier change 
to an affiliated carrier, and when the customer has paid the charges, 
the LEC must pay to the authorized carrier 150% of the amounts

[[Page 373]]

collected from the subscriber in accordance with paragraphs (a) through 
(f) of this section.

[65 FR 47693, Aug. 3, 2000, as amended at 68 FR 19159, Apr. 18, 2003]



Sec. 64.1190  Preferred carrier freezes.

    (a) A preferred carrier freeze (or freeze) prevents a change in a 
subscriber's preferred carrier selection unless the subscriber gives the 
carrier from whom the freeze was requested his or her express consent. 
All local exchange carriers who offer preferred carrier freezes must 
comply with the provisions of this section.
    (b) All local exchange carriers who offer preferred carrier freezes 
shall offer freezes on a nondiscriminatory basis to all subscribers, 
regardless of the subscriber's carrier selections.
    (c) Preferred carrier freeze procedures, including any solicitation, 
must clearly distinguish among telecommunications services (e.g., local 
exchange, intraLATA toll, and interLATA toll) subject to a preferred 
carrier freeze. The carrier offering the freeze must obtain separate 
authorization for each service for which a preferred carrier freeze is 
requested.
    (d) Solicitation and imposition of preferred carrier freezes. (1) 
All carrier-provided solicitation and other materials regarding 
preferred carrier freezes must include:
    (i) An explanation, in clear and neutral language, of what a 
preferred carrier freeze is and what services may be subject to a 
freeze;
    (ii) A description of the specific procedures necessary to lift a 
preferred carrier freeze; an explanation that these steps are in 
addition to the Commission's verification rules in Sec. Sec. 64.1120 
and 64.1130 for changing a subscriber's preferred carrier selections; 
and an explanation that the subscriber will be unable to make a change 
in carrier selection unless he or she lifts the freeze.
    (iii) An explanation of any charges associated with the preferred 
carrier freeze.
    (2) No local exchange carrier shall implement a preferred carrier 
freeze unless the subscriber's request to impose a freeze has first been 
confirmed in accordance with one of the following procedures:
    (i) The local exchange carrier has obtained the subscriber's written 
or electronically signed authorization in a form that meets the 
requirements of Sec. 64.1190(d)(3); or
    (ii) The local exchange carrier has obtained the subscriber's 
electronic authorization, placed from the telephone number(s) on which 
the preferred carrier freeze is to be imposed, to impose a preferred 
carrier freeze. The electronic authorization should confirm appropriate 
verification data (e.g., the subscriber's date of birth or social 
security number) and the information required in Sec. Sec. 
64.1190(d)(3)(ii)(A) through (D). Telecommunications carriers electing 
to confirm preferred carrier freeze orders electronically shall 
establish one or more toll-free telephone numbers exclusively for that 
purpose. Calls to the number(s) will connect a subscriber to a voice 
response unit, or similar mechanism that records the required 
information regarding the preferred carrier freeze request, including 
automatically recording the originating automatic numbering 
identification; or
    (iii) An appropriately qualified independent third party has 
obtained the subscriber's oral authorization to submit the preferred 
carrier freeze and confirmed the appropriate verification data (e.g., 
the subscriber's date of birth or social security number) and the 
information required in Sec. 64.1190(d)(3)(ii)(A) through (D). The 
independent third party must not be owned, managed, or directly 
controlled by the carrier or the carrier's marketing agent; must not 
have any financial incentive to confirm preferred carrier freeze 
requests for the carrier or the carrier's marketing agent; and must 
operate in a location physically separate from the carrier or the 
carrier's marketing agent. The content of the verification must include 
clear and conspicuous confirmation that the subscriber has authorized a 
preferred carrier freeze.
    (3) Written authorization to impose a preferred carrier freeze. A 
local exchange carrier may accept a subscriber's written and signed 
authorization to impose a freeze on his or her preferred carrier 
selection. Written authorization that does not conform with this section 
is

[[Page 374]]

invalid and may not be used to impose a preferred carrier freeze.
    (i) The written authorization shall comply with Sec. Sec. 
64.1130(b), (c), and (h) of the Commission's rules concerning the form 
and content for letters of agency.
    (ii) At a minimum, the written authorization must be printed with a 
readable type of sufficient size to be clearly legible and must contain 
clear and unambiguous language that confirms:
    (A) The subscriber's billing name and address and the telephone 
number(s) to be covered by the preferred carrier freeze;
    (B) The decision to place a preferred carrier freeze on the 
telephone number(s) and particular service(s). To the extent that a 
jurisdiction allows the imposition of preferred carrier freezes on 
additional preferred carrier selections (e.g., for local exchange, 
intraLATA toll, and interLATA toll), the authorization must contain 
separate statements regarding the particular selections to be frozen;
    (C) That the subscriber understands that she or he will be unable to 
make a change in carrier selection unless she or he lifts the preferred 
carrier freeze; and
    (D) That the subscriber understands that any preferred carrier 
freeze may involve a charge to the subscriber.
    (e) Procedures for lifting preferred carrier freezes. All local 
exchange carriers who offer preferred carrier freezes must, at a 
minimum, offer subscribers the following procedures for lifting a 
preferred carrier freeze:
    (1) A local exchange carrier administering a preferred carrier 
freeze must accept a subscriber's written or electronically signed 
authorization stating his or her intent to lift a preferred carrier 
freeze; and
    (2) A local exchange carrier administering a preferred carrier 
freeze must accept a subscriber's oral authorization stating her or his 
intent to lift a preferred carrier freeze and must offer a mechanism 
that allows a submitting carrier to conduct a three-way conference call 
with the carrier administering the freeze and the subscriber in order to 
lift a freeze. When engaged in oral authorization to lift a preferred 
carrier freeze, the carrier administering the freeze shall confirm 
appropriate verification data (e.g., the subscriber's date of birth or 
social security number) and the subscriber's intent to lift the 
particular freeze.

[64 FR 7762, Feb. 16, 1999, as amended at 66 FR 12893, Mar. 1, 2001; 73 
FR 13150, Mar. 12, 2008]



Sec. 64.1195  Registration requirement.

    (a) Applicability. A telecommunications carrier that will provide 
interstate telecommunications service shall file the registration 
information described in paragraph (b) of this section in accordance 
with the procedures described in paragraphs (c) and (g) of this section. 
Any telecommunications carrier already providing interstate 
telecommunications service on the effective date of these rules shall 
submit the relevant portion of its FCC Form 499-A in accordance with 
paragraphs (b) and (c) of this section.
    (b) Information required for purposes of part 64. A 
telecommunications carrier that is subject to the registration 
requirement pursuant to paragraph (a) of this section shall provide the 
following information:
    (1) The carrier's business name(s) and primary address;
    (2) The names and business addresses of the carrier's chief 
executive officer, chairman, and president, or, in the event that a 
company does not have such executives, three similarly senior-level 
officials of the company;
    (3) The carrier's regulatory contact and/or designated agent;
    (4) All names that the carrier has used in the past; and
    (5) The state(s) in which the carrier provides telecommunications 
service.
    (c) Submission of registration. A carrier that is subject to the 
registration requirement pursuant to paragraph (a) of this section shall 
submit the information described in paragraph (b) of this section in 
accordance with the Instructions to FCC Form 499-A. FCC Form 499-A must 
be submitted under oath and penalty of perjury.
    (d) Rejection of registration. The Commission may reject or suspend 
a carrier's registration for any of the reasons identified in paragraphs 
(e) or (f) of this section.

[[Page 375]]

    (e) Revocation or suspension of operating authority. After notice 
and opportunity to respond, the Commission may revoke or suspend the 
authorization of a carrier to provide service if the carrier provides 
materially false or incomplete information in its FCC Form 499-A or 
otherwise fails to comply with paragraphs (a), (b), and (c) of this 
section.
    (f) Imposition of fine. After notice and opportunity to respond, the 
Commission may impose a fine on a carrier that is subject to the 
registration requirement pursuant to paragraph (a) of this section if 
that carrier fails to submit an FCC Form 499-A in accordance with 
paragraphs (a), (b), and (c) of this section.
    (g) Changes in information. A carrier must notify the Commission of 
any changes to the information provided pursuant to paragraph (b) of 
this section within no more than one week of the change. Carriers may 
satisfy this requirement by filing the relevant portion of FCC Form 499-
A in accordance with the Instructions to such form.
    (h) Duty to confirm registration of other carriers. The Commission 
shall make available to the public a comprehensive listing of 
registrants and the information that they have provided pursuant to 
paragraph (b) of this section. A telecommunications carrier providing 
telecommunications service for resale shall have an affirmative duty to 
ascertain whether a potential carrier-customer (i.e., reseller) that is 
subject to the registration requirement pursuant to paragraph (a) of 
this section has filed an FCC Form 499-A with the Commission prior to 
offering service to that carrier-customer. After notice and opportunity 
to respond, the Commission may impose a fine on a carrier for failure to 
confirm the registration status of a potential carrier-customer before 
providing that carrier-customer with service.

[66 FR 12894, Mar. 1, 2001]



  Subpart L_Restrictions on Telemarketing, Telephone Solicitation, and 

                          Facsimile Advertising



Sec. 64.1200  Delivery restrictions.

    (a) No person or entity may:
    (1) Except as provided in paragraph (a)(2) of this section, initiate 
any telephone call (other than a call made for emergency purposes or is 
made with the prior express consent of the called party) using an 
automatic telephone dialing system or an artificial or prerecorded 
voice;
    (i) To any emergency telephone line, including any 911 line and any 
emergency line of a hospital, medical physician or service office, 
health care facility, poison control center, or fire protection or law 
enforcement agency;
    (ii) To the telephone line of any guest room or patient room of a 
hospital, health care facility, elderly home, or similar establishment; 
or
    (iii) To any telephone number assigned to a paging service, cellular 
telephone service, specialized mobile radio service, or other radio 
common carrier service, or any service for which the called party is 
charged for the call.
    (iv) A person will not be liable for violating the prohibition in 
paragraph (a)(1)(iii) of this section when the call is placed to a 
wireless number that has been ported from wireline service and such call 
is a voice call; not knowingly made to a wireless number; and made 
within 15 days of the porting of the number from wireline to wireless 
service, provided the number is not already on the national do-not-call 
registry or caller's company-specific do-not-call list.
    (2) Initiate, or cause to be initiated, any telephone call that 
includes or introduces an advertisement or constitutes telemarketing, 
using an automatic telephone dialing system or an artificial or 
prerecorded voice, to any of the lines or telephone numbers described in 
paragraphs (a)(1)(i) through (iii) of this section, other than a call 
made with the prior express written consent of the called party or the 
prior express consent of the called party when the call is made by or on 
behalf of a tax-exempt nonprofit organization,

[[Page 376]]

or a call that delivers a ``health care'' message made by, or on behalf 
of, a ``covered entity'' or its ``business associate,'' as those terms 
are defined in the HIPAA Privacy Rule, 45 CFR 160.103.
    (3) Initiate any telephone call to any residential line using an 
artificial or prerecorded voice to deliver a message without the prior 
express written consent of the called party, unless the call;
    (i) Is made for emergency purposes;
    (ii) Is not made for a commercial purpose;
    (iii) Is made for a commercial purpose but does not include or 
introduce an advertisement or constitute telemarketing;
    (iv) Is made by or on behalf of a tax-exempt nonprofit organization; 
or
    (v) Delivers a ``health care'' message made by, or on behalf of, a 
``covered entity'' or its ``business associate,'' as those terms are 
defined in the HIPAA Privacy Rule, 45 CFR 160.103.
    (4) Use a telephone facsimile machine, computer, or other device to 
send an unsolicited advertisement to a telephone facsimile machine, 
unless--
    (i) The unsolicited advertisement is from a sender with an 
established business relationship, as defined in paragraph (f)(6) of 
this section, with the recipient; and
    (ii) The sender obtained the number of the telephone facsimile 
machine through--
    (A) The voluntary communication of such number by the recipient 
directly to the sender, within the context of such established business 
relationship; or
    (B) A directory, advertisement, or site on the Internet to which the 
recipient voluntarily agreed to make available its facsimile number for 
public distribution. If a sender obtains the facsimile number from the 
recipient's own directory, advertisement, or Internet site, it will be 
presumed that the number was voluntarily made available for public 
distribution, unless such materials explicitly note that unsolicited 
advertisements are not accepted at the specified facsimile number. If a 
sender obtains the facsimile number from other sources, the sender must 
take reasonable steps to verify that the recipient agreed to make the 
number available for public distribution.
    (C) This clause shall not apply in the case of an unsolicited 
advertisement that is sent based on an established business relationship 
with the recipient that was in existence before July 9, 2005 if the 
sender also possessed the facsimile machine number of the recipient 
before July 9, 2005. There shall be a rebuttable presumption that if a 
valid established business relationship was formed prior to July 9, 
2005, the sender possessed the facsimile number prior to such date as 
well; and
    (iii) The advertisement contains a notice that informs the recipient 
of the ability and means to avoid future unsolicited advertisements. A 
notice contained in an advertisement complies with the requirements 
under this paragraph only if--
    (A) The notice is clear and conspicuous and on the first page of the 
advertisement;
    (B) The notice states that the recipient may make a request to the 
sender of the advertisement not to send any future advertisements to a 
telephone facsimile machine or machines and that failure to comply, 
within 30 days, with such a request meeting the requirements under 
paragraph (a)(4)(v) of this section is unlawful;
    (C) The notice sets forth the requirements for an opt-out request 
under paragraph (a)(4)(v) of this section;
    (D) The notice includes--
    (1) A domestic contact telephone number and facsimile machine number 
for the recipient to transmit such a request to the sender; and
    (2) If neither the required telephone number nor facsimile machine 
number is a toll-free number, a separate cost-free mechanism including a 
Web site address or email address, for a recipient to transmit a request 
pursuant to such notice to the sender of the advertisement. A local 
telephone number also shall constitute a cost-free mechanism so long as 
recipients are local and will not incur any long distance or other 
separate charges for calls made to such number; and

[[Page 377]]

    (E) The telephone and facsimile numbers and cost-free mechanism 
identified in the notice must permit an individual or business to make 
an opt-out request 24 hours a day, 7 days a week.
    (iv) A facsimile advertisement that is sent to a recipient that has 
provided prior express invitation or permission to the sender must 
include an opt-out notice that complies with the requirements in 
paragraph (a)(4)(iii) of this section.
    (v) A request not to send future unsolicited advertisements to a 
telephone facsimile machine complies with the requirements under this 
subparagraph only if--
    (A) The request identifies the telephone number or numbers of the 
telephone facsimile machine or machines to which the request relates;
    (B) The request is made to the telephone number, facsimile number, 
Web site address or email address identified in the sender's facsimile 
advertisement; and
    (C) The person making the request has not, subsequent to such 
request, provided express invitation or permission to the sender, in 
writing or otherwise, to send such advertisements to such person at such 
telephone facsimile machine.
    (vi) A sender that receives a request not to send future unsolicited 
advertisements that complies with paragraph (a)(4)(v) of this section 
must honor that request within the shortest reasonable time from the 
date of such request, not to exceed 30 days, and is prohibited from 
sending unsolicited advertisements to the recipient unless the recipient 
subsequently provides prior express invitation or permission to the 
sender. The recipient's opt-out request terminates the established 
business relationship exemption for purposes of sending future 
unsolicited advertisements. If such requests are recorded or maintained 
by a party other than the sender on whose behalf the unsolicited 
advertisement is sent, the sender will be liable for any failures to 
honor the opt-out request.
    (vii) A facsimile broadcaster will be liable for violations of 
paragraph (a)(4) of this section, including the inclusion of opt-out 
notices on unsolicited advertisements, if it demonstrates a high degree 
of involvement in, or actual notice of, the unlawful activity and fails 
to take steps to prevent such facsimile transmissions.
    (5) Use an automatic telephone dialing system in such a way that two 
or more telephone lines of a multi-line business are engaged 
simultaneously.
    (6) Disconnect an unanswered telemarketing call prior to at least 15 
seconds or four (4) rings.
    (7) Abandon more than three percent of all telemarketing calls that 
are answered live by a person, as measured over a 30-day period for a 
single calling campaign. If a single calling campaign exceeds a 30-day 
period, the abandonment rate shall be calculated separately for each 
successive 30-day period or portion thereof that such calling campaign 
continues. A call is ``abandoned'' if it is not connected to a live 
sales representative within two (2) seconds of the called person's 
completed greeting.
    (i) Whenever a live sales representative is not available to speak 
with the person answering the call, within two (2) seconds after the 
called person's completed greeting, the telemarketer or the seller must 
provide:
    (A) A prerecorded identification and opt-out message that is limited 
to disclosing that the call was for ``telemarketing purposes'' and 
states the name of the business, entity, or individual on whose behalf 
the call was placed, and a telephone number for such business, entity, 
or individual that permits the called person to make a do-not-call 
request during regular business hours for the duration of the 
telemarketing campaign; provided, that, such telephone number may not be 
a 900 number or any other number for which charges exceed local or long 
distance transmission charges, and
    (B) An automated, interactive voice- and/or key press-activated opt-
out mechanism that enables the called person to make a do-not-call 
request prior to terminating the call, including brief explanatory 
instructions on how to use such mechanism. When the called person elects 
to opt-out using such mechanism, the mechanism must automatically record 
the called person's number to the seller's do-not-call list and 
immediately terminate the call.

[[Page 378]]

    (ii) A call for telemarketing purposes that delivers an artificial 
or prerecorded voice message to a residential telephone line or to any 
of the lines or telephone numbers described in paragraphs (a)(1)(i) 
through (iii) of this section after the subscriber to such line has 
granted prior express written consent for the call to be made shall not 
be considered an abandoned call if the message begins within two (2) 
seconds of the called person's completed greeting.
    (iii) The seller or telemarketer must maintain records establishing 
compliance with paragraph (a)(7) of this section.
    (iv) Calls made by or on behalf of tax-exempt nonprofit 
organizations are not covered by this paragraph (a)(7).
    (8) Use any technology to dial any telephone number for the purpose 
of determining whether the line is a facsimile or voice line.
    (b) All artificial or prerecorded voice telephone messages shall:
    (1) At the beginning of the message, state clearly the identity of 
the business, individual, or other entity that is responsible for 
initiating the call. If a business is responsible for initiating the 
call, the name under which the entity is registered to conduct business 
with the State Corporation Commission (or comparable regulatory 
authority) must be stated;
    (2) During or after the message, state clearly the telephone number 
(other than that of the autodialer or prerecorded message player that 
placed the call) of such business, other entity, or individual. The 
telephone number provided may not be a 900 number or any other number 
for which charges exceed local or long distance transmission charges. 
For telemarketing messages to residential telephone subscribers, such 
telephone number must permit any individual to make a do-not-call 
request during regular business hours for the duration of the 
telemarketing campaign; and
    (3) In every case where the artificial or prerecorded voice 
telephone message includes or introduces an advertisement or constitutes 
telemarketing and is delivered to a residential telephone line or any of 
the lines or telephone numbers described in paragraphs (a)(1)(i) through 
(iii), provide an automated, interactive voice- and/or key press-
activated opt-out mechanism for the called person to make a do-not-call 
request, including brief explanatory instructions on how to use such 
mechanism, within two (2) seconds of providing the identification 
information required in paragraph (b)(1) of this section. When the 
called person elects to opt out using such mechanism, the mechanism, 
must automatically record the called person's number to the seller's do-
not-call list and immediately terminate the call. When the artificial or 
prerecorded voice telephone message is left on an answering machine or a 
voice mail service, such message must also provide a toll free number 
that enables the called person to call back at a later time and connect 
directly to the automated, interactive voice- and/or key press-activated 
opt-out mechanism and automatically record the called person's number to 
the seller's do-not-call list.
    (c) No person or entity shall initiate any telephone solicitation 
to:
    (1) Any residential telephone subscriber before the hour of 8 a.m. 
or after 9 p.m. (local time at the called party's location), or
    (2) A residential telephone subscriber who has registered his or her 
telephone number on the national do-not-call registry of persons who do 
not wish to receive telephone solicitations that is maintained by the 
Federal Government. Such do-not-call registrations must be honored 
indefinitely, or until the registration is cancelled by the consumer or 
the telephone number is removed by the database administrator. Any 
person or entity making telephone solicitations (or on whose behalf 
telephone solicitations are made) will not be liable for violating this 
requirement if:
    (i) It can demonstrate that the violation is the result of error and 
that as part of its routine business practice, it meets the following 
standards:
    (A) Written procedures. It has established and implemented written 
procedures to comply with the national do-not-call rules;
    (B) Training of personnel. It has trained its personnel, and any 
entity

[[Page 379]]

assisting in its compliance, in procedures established pursuant to the 
national do-not-call rules;
    (C) Recording. It has maintained and recorded a list of telephone 
numbers that the seller may not contact;
    (D) Accessing the national do-not-call database. It uses a process 
to prevent telephone solicitations to any telephone number on any list 
established pursuant to the do-not-call rules, employing a version of 
the national do-not-call registry obtained from the administrator of the 
registry no more than 31 days prior to the date any call is made, and 
maintains records documenting this process.

    Note to paragraph (c)(2)(i)(D): The requirement in paragraph 
64.1200(c)(2)(i)(D) for persons or entities to employ a version of the 
national do-not-call registry obtained from the administrator no more 
than 31 days prior to the date any call is made is effective January 1, 
2005. Until January 1, 2005, persons or entities must continue to employ 
a version of the registry obtained from the administrator of the 
registry no more than three months prior to the date any call is made.

    (E) Purchasing the national do-not-call database. It uses a process 
to ensure that it does not sell, rent, lease, purchase or use the 
national do-not-call database, or any part thereof, for any purpose 
except compliance with this section and any such state or federal law to 
prevent telephone solicitations to telephone numbers registered on the 
national database. It purchases access to the relevant do-not-call data 
from the administrator of the national database and does not participate 
in any arrangement to share the cost of accessing the national database, 
including any arrangement with telemarketers who may not divide the 
costs to access the national database among various client sellers; or
    (ii) It has obtained the subscriber's prior express invitation or 
permission. Such permission must be evidenced by a signed, written 
agreement between the consumer and seller which states that the consumer 
agrees to be contacted by this seller and includes the telephone number 
to which the calls may be placed; or
    (iii) The telemarketer making the call has a personal relationship 
with the recipient of the call.
    (d) No person or entity shall initiate any call for telemarketing 
purposes to a residential telephone subscriber unless such person or 
entity has instituted procedures for maintaining a list of persons who 
request not to receive telemarketing calls made by or on behalf of that 
person or entity. The procedures instituted must meet the following 
minimum standards:
    (1) Written policy. Persons or entities making calls for 
telemarketing purposes must have a written policy, available upon 
demand, for maintaining a do-not-call list.
    (2) Training of personnel engaged in telemarketing. Personnel 
engaged in any aspect of telemarketing must be informed and trained in 
the existence and use of the do-not-call list.
    (3) Recording, disclosure of do-not-call requests. If a person or 
entity making a call for telemarketing purposes (or on whose behalf such 
a call is made) receives a request from a residential telephone 
subscriber not to receive calls from that person or entity, the person 
or entity must record the request and place the subscriber's name, if 
provided, and telephone number on the do-not-call list at the time the 
request is made. Persons or entities making calls for telemarketing 
purposes (or on whose behalf such calls are made) must honor a 
residential subscriber's do-not-call request within a reasonable time 
from the date such request is made. This period may not exceed thirty 
days from the date of such request. If such requests are recorded or 
maintained by a party other than the person or entity on whose behalf 
the telemarketing call is made, the person or entity on whose behalf the 
telemarketing call is made will be liable for any failures to honor the 
do-not-call request. A person or entity making a call for telemarketing 
purposes must obtain a consumer's prior express permission to share or 
forward the consumer's request not to be called to a party other than 
the person or entity on whose behalf a telemarketing call is made or an 
affiliated entity.
    (4) Identification of sellers and telemarketers. A person or entity 
making a call for telemarketing purposes must provide the called party 
with the name of the individual caller, the name of

[[Page 380]]

the person or entity on whose behalf the call is being made, and a 
telephone number or address at which the person or entity may be 
contacted. The telephone number provided may not be a 900 number or any 
other number for which charges exceed local or long distance 
transmission charges.
    (5) Affiliated persons or entities. In the absence of a specific 
request by the subscriber to the contrary, a residential subscriber's 
do-not-call request shall apply to the particular business entity making 
the call (or on whose behalf a call is made), and will not apply to 
affiliated entities unless the consumer reasonably would expect them to 
be included given the identification of the caller and the product being 
advertised.
    (6) Maintenance of do-not-call lists. A person or entity making 
calls for telemarketing purposes must maintain a record of a consumer's 
request not to receive further telemarketing calls. A do-not-call 
request must be honored for 5 years from the time the request is made.
    (7) Tax-exempt nonprofit organizations are not required to comply 
with 64.1200(d).
    (e) The rules set forth in paragraph (c) and (d) of this section are 
applicable to any person or entity making telephone solicitations or 
telemarketing calls to wireless telephone numbers to the extent 
described in the Commission's Report and Order, CG Docket No. 02-278, 
FCC 03-153, ``Rules and Regulations Implementing the Telephone Consumer 
Protection Act of 1991.''
    (f) As used in this section:
    (1) The term advertisement means any material advertising the 
commercial availability or quality of any property, goods, or services.
    (2) The terms automatic telephone dialing system and autodialer mean 
equipment which has the capacity to store or produce telephone numbers 
to be called using a random or sequential number generator and to dial 
such numbers.
    (3) The term clear and conspicuous means a notice that would be 
apparent to the reasonable consumer, separate and distinguishable from 
the advertising copy or other disclosures. With respect to facsimiles 
and for purposes of paragraph (a)(4)(iii)(A) of this section, the notice 
must be placed at either the top or bottom of the facsimile.
    (4) The term emergency purposes means calls made necessary in any 
situation affecting the health and safety of consumers.
    (5) The term established business relationship for purposes of 
telephone solicitations means a prior or existing relationship formed by 
a voluntary two-way communication between a person or entity and a 
residential subscriber with or without an exchange of consideration, on 
the basis of the subscriber's purchase or transaction with the entity 
within the eighteen (18) months immediately preceding the date of the 
telephone call or on the basis of the subscriber's inquiry or 
application regarding products or services offered by the entity within 
the three months immediately preceding the date of the call, which 
relationship has not been previously terminated by either party.
    (i) The subscriber's seller-specific do-not-call request, as set 
forth in paragraph (d)(3) of this section, terminates an established 
business relationship for purposes of telemarketing and telephone 
solicitation even if the subscriber continues to do business with the 
seller.
    (ii) The subscriber's established business relationship with a 
particular business entity does not extend to affiliated entities unless 
the subscriber would reasonably expect them to be included given the 
nature and type of goods or services offered by the affiliate and the 
identity of the affiliate.
    (6) The term established business relationship for purposes of 
paragraph (a)(4) of this section on the sending of facsimile 
advertisements means a prior or existing relationship formed by a 
voluntary two-way communication between a person or entity and a 
business or residential subscriber with or without an exchange of 
consideration, on the basis of an inquiry, application, purchase or 
transaction by the business or residential subscriber regarding products 
or services offered by such person or entity, which relationship has not 
been previously terminated by either party.

[[Page 381]]

    (7) The term facsimile broadcaster means a person or entity that 
transmits messages to telephone facsimile machines on behalf of another 
person or entity for a fee.
    (8) The term prior express written consent means an agreement, in 
writing, bearing the signature of the person called that clearly 
authorizes the seller to deliver or cause to be delivered to the person 
called advertisements or telemarketing messages using an automatic 
telephone dialing system or an artificial or prerecorded voice, and the 
telephone number to which the signatory authorizes such advertisements 
or telemarketing messages to be delivered.
    (i) The written agreement shall include a clear and conspicuous 
disclosure informing the person signing that:
    (A) By executing the agreement, such person authorizes the seller to 
deliver or cause to be delivered to the signatory telemarketing calls 
using an automatic telephone dialing system or an artificial or 
prerecorded voice; and
    (B) The person is not required to sign the agreement (directly or 
indirectly), or agree to enter into such an agreement as a condition of 
purchasing any property, goods, or services.
    (ii) The term ``signature'' shall include an electronic or digital 
form of signature, to the extent that such form of signature is 
recognized as a valid signature under applicable federal law or state 
contract law.
    (9) The term seller means the person or entity on whose behalf a 
telephone call or message is initiated for the purpose of encouraging 
the purchase or rental of, or investment in, property, goods, or 
services, which is transmitted to any person.
    (10) The term sender for purposes of paragraph (a)(4) of this 
section means the person or entity on whose behalf a facsimile 
unsolicited advertisement is sent or whose goods or services are 
advertised or promoted in the unsolicited advertisement.
    (11) The term telemarketer means the person or entity that initiates 
a telephone call or message for the purpose of encouraging the purchase 
or rental of, or investment in, property, goods, or services, which is 
transmitted to any person.
    (12) The term telemarketing means the initiation of a telephone call 
or message for the purpose of encouraging the purchase or rental of, or 
investment in, property, goods, or services, which is transmitted to any 
person.
    (13) The term telephone facsimile machine means equipment which has 
the capacity to transcribe text or images, or both, from paper into an 
electronic signal and to transmit that signal over a regular telephone 
line, or to transcribe text or images (or both) from an electronic 
signal received over a regular telephone line onto paper.
    (14) The term telephone solicitation means the initiation of a 
telephone call or message for the purpose of encouraging the purchase or 
rental of, or investment in, property, goods, or services, which is 
transmitted to any person, but such term does not include a call or 
message:
    (i) To any person with that person's prior express invitation or 
permission;
    (ii) To any person with whom the caller has an established business 
relationship; or
    (iii) By or on behalf of a tax-exempt nonprofit organization.
    (15) The term unsolicited advertisement means any material 
advertising the commercial availability or quality of any property, 
goods, or services which is transmitted to any person without that 
person's prior express invitation or permission, in writing or 
otherwise.
    (16) The term personal relationship means any family member, friend, 
or acquaintance of the telemarketer making the call.
    (g) Beginning January 1, 2004, common carriers shall:
    (1) When providing local exchange service, provide an annual notice, 
via an insert in the subscriber's bill, of the right to give or revoke a 
notification of an objection to receiving telephone solicitations 
pursuant to the national do-not-call database maintained by the federal 
government and the methods by which such rights may be exercised by the 
subscriber. The notice must be clear and conspicuous and include, at a 
minimum, the Internet address and toll-free number that residential 
telephone subscribers may use to register on the national database.

[[Page 382]]

    (2) When providing service to any person or entity for the purpose 
of making telephone solicitations, make a one-time notification to such 
person or entity of the national do-not-call requirements, including, at 
a minimum, citation to 47 CFR 64.1200 and 16 CFR 310. Failure to receive 
such notification will not serve as a defense to any person or entity 
making telephone solicitations from violations of this section.
    (h) The administrator of the national do-not-call registry that is 
maintained by the federal government shall make the telephone numbers in 
the database available to the States so that a State may use the 
telephone numbers that relate to such State as part of any database, 
list or listing system maintained by such State for the regulation of 
telephone solicitations.

[68 FR 44177, July 25, 2003, as amended at 68 FR 59131, Oct. 14, 2003; 
69 FR 60316, Oct. 8, 2004; 70 FR 19337, Apr. 13, 2005; 71 FR 25977, May 
3, 2006; 71 FR 56893, Sept. 28, 2006; 71 FR 75122, Dec. 14, 2006; 73 FR 
40185, July 14, 2008; 77 FR 34246, June 11, 2012]



Sec. 64.1201  Restrictions on billing name and address disclosure.

    (a) As used in this section:
    (1) The term billing name and address means the name and address 
provided to a local exchange company by each of its local exchange 
customers to which the local exchange company directs bills for its 
services.
    (2) The term ``telecommunications service provider'' means 
interexchange carriers, operator service providers, enhanced service 
providers, and any other provider of interstate telecommunications 
services.
    (3) The term authorized billing agent means a third party hired by a 
telecommunications service provider to perform billing and collection 
services for the telecommunications service provider.
    (4) The term bulk basis means billing name and address information 
for all the local exchange service subscribers of a local exchange 
carrier.
    (5) The term LEC joint use card means a calling card bearing an 
account number assigned by a local exchange carrier, used for the 
services of the local exchange carrier and a designated interexchange 
carrier, and validated by access to data maintained by the local 
exchange carrier.
    (b) No local exchange carrier providing billing name and address 
shall disclose billing name and address information to any party other 
than a telecommunications service provider or an authorized billing and 
collection agent of a telecommunications service provider.
    (c)(1) No telecommunications service provider or authorized billing 
and collection agent of a telecommunications service provider shall use 
billing name and address information for any purpose other than the 
following:
    (i) Billing customers for using telecommunications services of that 
service provider and collecting amounts due;
    (ii) Any purpose associated with the ``equal access'' requirement of 
United States v. AT&T 552 F.Supp. 131 (D.D.C. 1982); and
    (iii) Verification of service orders of new customers, 
identification of customers who have moved to a new address, fraud 
prevention, and similar nonmarketing purposes.
    (2) In no case shall any telecommunications service provider or 
authorized billing and collection agent of a telecommunications service 
provider disclose the billing name and address information of any 
subscriber to any third party, except that a telecommunications service 
provider may disclose billing name and address information to its 
authorized billing and collection agent.
    (d) [Reserved]
    (e)(1) All local exchange carriers providing billing name and 
address information shall notify their subscribers that:
    (i) The subscriber's billing name and address will be disclosed, 
pursuant to Policies and Rules Concerning Local Exchange Carrier 
Validation and Billing Information for Joint Use Calling Cards, CC 
Docket No. 91-115, FCC 93-254, adopted May 13, 1993, whenever the 
subscriber uses a LEC joint use card to pay for services obtained from 
the telecommunications service provider, and
    (ii) The subscriber's billing name and address will be disclosed, 
pursuant to Policies and Rules Concerning Local

[[Page 383]]

Exchange Carrier Validation and Billing Information for Joint Use 
Calling Cards, CC Docket No. 91-115, FCC 93-254, adopted May 13, 1993, 
whenever the subscriber accepts a third party or collect call to a 
telephone station provided by the LEC to the subscriber.
    (2) In addition to the notification specified in paragraph (e)(1) of 
this section, all local exchange carriers providing billing name and 
address information shall notify their subscribers with unlisted or 
nonpublished telephone numbers that:
    (i) Customers have a right to request that their BNA not be 
disclosed, and that customers may prevent BNA disclosure for third party 
and collect calls as well as calling card calls;
    (ii) LECs will presume that unlisted and nonpublished end users 
consent to disclosure and use of their BNA if customers do not 
affirmatively request that their BNA not be disclosed; and
    (iii) The presumption in favor of consent for disclosure will begin 
30 days after customers receive notice.
    (3) No local exchange carrier shall disclose the billing name and 
address information associated with any calling card call made by any 
subscriber who has affirmatively withheld consent for disclosure of BNA 
information, or for any third party or collect call charged to any 
subscriber who has affirmatively withheld consent for disclosure of BNA 
information.

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



Sec. 64.1202  Public safety answering point do-not-call registry.

    (a) As used in this section, the following terms are defined as:
    (1) Operators of automatic dialing or robocall equipment. Any person 
or entity who uses an automatic telephone dialing system, as defined in 
section 227(a)(1) of the Communications Act of 1934, as amended, to make 
telephone calls with such equipment.
    (2) Public Safety Answering Point (PSAP). A facility that has been 
designated to receive emergency calls and route them to emergency 
service personnel pursuant to section 222(h)(4) of the Communications 
Act of 1934, as amended. As used in this section, this term includes 
both primary and secondary PSAPs.
    (3) Emergency purpose. A call made necessary in any situation 
affecting the health and safety of any person.
    (b) PSAP numbers and registration. Each PSAP may designate a 
representative who shall be required to file a certification with the 
administrator of the PSAP registry, under penalty of law, that they are 
authorized and eligible to place numbers onto the PSAP Do-Not-Call 
registry on behalf of that PSAP. The designated PSAP representative 
shall provide contact information, including the PSAP represented, 
contact name, title, address, telephone number, and email address. 
Verified PSAPs shall be permitted to upload to the registry any PSAP 
telephone numbers associated with the provision of emergency services or 
communications with other public safety agencies. On an annual basis 
designated PSAP representatives shall access the registry, review their 
numbers placed on the registry to ensure that they remain eligible for 
inclusion on the registry, and remove ineligible numbers.
    (c) Prohibiting the use of autodialers to contact registered PSAP 
numbers. An operator of automatic dialing or robocall equipment is 
prohibited from using such equipment to contact any telephone number 
registered on the PSAP Do-Not-Call registry other than for an emergency 
purpose. This prohibition encompasses both voice and text calls.
    (d) Granting and tracking access to the PSAP registry. An operator 
of automatic dialing or robocall equipment may not obtain access or use 
the PSAP Do-Not-Call registry until it provides to the designated 
registry administrator contact information that includes the operator's 
name and all alternative names under which the registrant operates, a 
business address, a contact person, the contact person's telephone 
number, the operator's email address, and all outbound telephone numbers 
used to place autodialed calls, including both actual originating 
numbers and numbers that are displayed on caller identification 
services, and thereafter obtains a unique identification number or 
password from the designated registry administrator. All such contact 
information provided to

[[Page 384]]

the designated registry administrator must be updated within 30 days of 
any change to such information. In addition, an operator of automatic 
dialing equipment must certify when it accesses the registry, under 
penalty of law, that it is accessing the registry solely to prevent 
autodialed calls to numbers on the registry.
    (e) Accessing the registry. An operator of automatic dialing 
equipment or robocall equipment shall, to prevent such calls to any 
telephone number on the registry, access and employ a version of the 
PSAP Do-Not-Call registry obtained from the registry administrator no 
more than 31 days prior to the date any call is made, and shall maintain 
records documenting this process. It shall not be a violation of 
paragraph (c) of this section to contact a number added to the registry 
subsequent to the last required access to the registry by operators of 
automatic dialing or robocall equipment.
    (f) Restrictions on disclosing or dissemination of the PSAP 
registry. No person or entity, including an operator of automatic 
dialing equipment or robocall equipment, may sell, rent, lease, 
purchase, share, or use the PSAP Do-Not-Call registry, or any part 
thereof, for any purpose except to comply with this section and any such 
state or Federal law enacted to prevent autodialed calls to telephone 
numbers in the PSAP registry.

[77 FR 71137, Nov. 29, 2012]



                 Subpart M_Provision of Payphone Service



Sec. 64.1300  Payphone compensation obligation.

    (a) For purposes of this subpart, a Completing Carrier is a long 
distance carrier or switch-based long distance reseller that completes a 
coinless access code or subscriber toll-free payphone call or a local 
exchange carrier that completes a local, coinless access code or 
subscriber toll-free payphone call.
    (b) Except as provided herein, a Completing Carrier that completes a 
coinless access code or subscriber toll-free payphone call from a switch 
that the Completing Carrier either owns or leases shall compensate the 
payphone service provider for that call at a rate agreed upon by the 
parties by contract.
    (c) The compensation obligation set forth herein shall not apply to 
calls to emergency numbers, calls by hearing disabled persons to a 
telecommunications relay service or local calls for which the caller has 
made the required coin deposit.
    (d) In the absence of an agreement as required by paragraph (b) of 
this section, the carrier is obligated to compensate the payphone 
service provider at a per-call rate of $.494.

[71 FR 3014, Jan. 19, 2006]



Sec. 64.1301  Per-payphone compensation.

    (a) Interim access code and subscriber 800 calls. In the absence of 
a negotiated agreement to pay a different amount, each entity listed in 
Appendix A of the Fifth Order on Reconsideration and Order on Remand in 
CC Docket No. 96-128, FCC 02-292, must pay default compensation to 
payphone service providers for payphone access code calls and payphone 
subscriber 800 calls for the period beginning November 7, 1996, and 
ending October 6, 1997, in the amount listed in Appendix A per payphone 
per month. A complete copy of Appendix A is available at www.fcc.gov.
    (b) Interim payphone compensation for inmate calls. In the absence 
of a negotiated agreement to pay a different amount, if a payphone 
service provider providing inmate service was not compensated for calls 
originating at an inmate telephone during the period starting on 
November 7, 1996, and ending on October 6, 1997, an interexchange 
carrier to which the inmate telephone was presubscribed during this same 
time period must compensate the payphone service provider providing 
inmate service at the default rate of $0.238 per inmate call originating 
during the same time period, except that a payphone service provider 
that is affiliated with a local exchange carrier is not eligible to 
receive payphone compensation prior to April 16, 1997, or, in the 
alternative, the first day following both the termination of subsidies 
and payphone reclassification and transfer, whichever date is latest.

[[Page 385]]

    (c) Interim compensation for 0+ payphone calls. In the absence of a 
negotiated agreement to pay a different amount, if a payphone service 
provider was not compensated for 0+ calls originating during the period 
starting on November 7, 1996, and ending on October 6, 1997, an 
interexchange carrier to which the payphone was presubscribed during 
this same time period must compensate the payphone service provider in 
the default amount of $4.2747 per payphone per month during the same 
time period, except that a payphone service provider that is affiliated 
with a local exchange carrier is not eligible to receive payphone 
compensation prior to April 16, 1997, or, in the alternative, the first 
day following both the termination of subsidies and payphone 
reclassification and transfer, whichever date is latest.
    (d) Intermediate access code and subscriber 800 calls. In the 
absence of a negotiated agreement to pay a different amount, each entity 
listed in Appendix B of the Fifth Order on Reconsideration and Order on 
Remand in CC Docket No. 96-128, FCC 02-292, must pay default 
compensation to payphone service providers for access code calls and 
payphone subscriber 800 calls for the period beginning October 7, 1997, 
and ending April 20, 1999, in the amount listed in Appendix B for any 
payphone for any month during which per-call compensation for that 
payphone for that month was not paid by the listed entity. A complete 
copy of Appendix B is available at www.fcc.gov.
    (e) Post-intermediate access code and subscriber 800 calls. In the 
absence of a negotiated agreement to pay a different amount, each entity 
listed in Appendix C of the Fifth Order on Reconsideration and Order on 
Remand in CC Docket No. 96-128, FCC 02-292, must pay default 
compensation to payphone service providers for access code calls and 
payphone subscriber 800 calls for the period beginning April 21, 1999, 
in the amount listed in Appendix C for any payphone for any month during 
which per-call compensation for that payphone for that month was or is 
not paid by the listed entity. A complete copy of Appendix C is 
available at www.fcc.gov.

[67 FR 71890, Dec. 3, 2002]



Sec. 64.1310  Payphone compensation procedures.

    (a) Unless the payphone service provider consents to an alternative 
compensation arrangement, each Completing Carrier identified in Sec. 
64.1300(a) shall compensate the payphone service provider in accordance 
with paragraphs (a)(1) through (a)(4) of this section. A payphone 
service provider may not unreasonably withhold its consent to an 
alternative compensation arrangement.
    (1) Each Completing Carrier shall establish a call tracking system 
that accurately tracks coinless access code or subscriber toll-free 
payphone calls to completion.
    (2) Each Completing Carrier shall pay compensation to payphone 
service providers on a quarterly basis for each completed payphone call 
identified in the Completing Carrier's quarterly report required by 
paragraph (a)(4) of this section.
    (3) When payphone compensation is tendered for a quarter, the chief 
financial officer of the Completing Carrier shall submit to each 
payphone service provider to which compensation is tendered a sworn 
statement that the payment amount for that quarter is accurate and is 
based on 100% of all completed calls that originated from that payphone 
service provider's payphones. Instead of transmitting individualized 
statements to each payphone service provider, a Completing Carrier may 
provide a single, blanket sworn statement addressed to all payphone 
service providers to which compensation is tendered for that quarter and 
may notify the payphone service providers of the sworn statement through 
any electronic method, including transmitting the sworn statement with 
the Sec. 64.1310(a)(4) quarterly report, or posting the sworn statement 
on the Completing Carrier or clearinghouse website. If a Completing 
Carrier chooses to post the sworn statement on its website, the 
Completing Carrier shall state in its Sec. 64.1310(a)(4) quarterly 
report the web address of the sworn statement.
    (4) At the conclusion of each quarter, the Completing Carrier shall 
submit to

[[Page 386]]

the payphone service provider, in computer readable format, a report on 
that quarter that includes:
    (i) A list of the toll-free and access numbers dialed and completed 
by the Completing Carrier from each of that payphone service provider's 
payphones and the ANI for each payphone;
    (ii) The volume of calls for each number identified in paragraph 
(a)(4)(i) of this section that were completed by the Completing Carrier;
    (iii) The name, address, and phone number of the person or persons 
responsible for handling the Completing Carrier's payphone compensation; 
and
    (iv) The carrier identification code (``CIC'') of all facilities-
based long distance carriers that routed calls to the Completing 
Carrier, categorized according to the list of toll-free and access code 
numbers identified in paragraph (a)(4)(i) of this section.
    (b) For purposes of this subpart, an Intermediate Carrier is a 
facilities-based long distance carrier that switches payphone calls to 
other facilities-based long distance carriers.
    (c) Unless the payphone service provider agrees to other reporting 
arrangements, each Intermediate Carrier shall provide the payphone 
service provider with quarterly reports, in computer readable format, 
that include:
    (1) A list of all the facilities-based long distance carriers to 
which the Intermediate Carrier switched toll-free and access code calls 
dialed from each of that payphone service provider's payphones;
    (2) For each facilities-based long distance carrier identified in 
paragraph (c)(1) of this section, a list of the toll-free and access 
code numbers dialed from each of that payphone service provider's 
payphones that all local exchange carriers have delivered to the 
Intermediate Carrier and that the Intermediate Carrier switched to the 
identified facilities-based long distance carrier;
    (3) The volume of calls for each number identified in paragraph 
(c)(2) of this section that the Intermediate Carrier has received from 
each of that payphone service provider's payphones, identified by their 
ANIs, and switched to each facilities-based long distance carrier 
identified in paragraph (c)(1) of this section; and
    (4) The name, address and telephone number and other identifying 
information of the person or persons for each facilities-based long 
distance carrier identified in paragraph (c)(1) of this section who 
serves as the Intermediate Carrier's contact at each identified 
facilities-based long distance carrier.
    (d) Local Exchange Carriers must provide to carriers required to pay 
compensation pursuant to Sec. 64.1300(a) a list of payphone numbers in 
their service areas. The list must be provided on a quarterly basis. 
Local Exchange Carriers must verify disputed numbers in a timely manner, 
and must maintain verification data for 18 months after close of the 
compensation period.
    (e) Local Exchange Carriers must respond to all carrier requests for 
payphone number verification in connection with the compensation 
requirements herein, even if such verification is a negative response.
    (f) A payphone service provider that seeks compensation for 
payphones that are not included on the Local Exchange Carrier's list 
satisfies its obligation to provide alternative reasonable verification 
to a payor carrier if it provides to that carrier:
    (1) A notarized affidavit attesting that each of the payphones for 
which the payphone service provider seeks compensation is a payphone 
that was in working order as of the last day of the compensation period; 
and
    (2) Corroborating evidence that each such payphone is owned by the 
payphone service provider seeking compensation and was in working order 
on the last day of the compensation period. Corroborating evidence shall 
include, at a minimum, the telephone bill for the last month of the 
billing quarter indicating use of a line screening service.
    (g) Each Completing Carrier and each Intermediate Carrier must 
maintain verification data to support the quarterly reports submitted 
pursuant to paragraphs (a)(4) and (c) of this section for 27 months 
after the close of that quarter. This data must include the time and 
date that each call identified

[[Page 387]]

in paragraphs (a)(4) and (c) of this section was made. This data must be 
provided to the payphone service provider upon request.

[68 FR 62755, Nov. 6, 2003, as amended at 70 FR 722, Jan. 5, 2005]



Sec. 64.1320  Payphone call tracking system audits.

    (a) Unless it has entered into an alternative compensation 
arrangement pursuant to Sec. 64.1310(a) that relieves it of its Sec. 
64.1310(a)(1) tracking system obligation, each Completing Carrier must 
undergo an audit of its Sec. 64.1310(a)(1) tracking system by an 
independent third party auditor whose responsibility shall be, using 
audit methods approved by the American Institute for Certified Public 
Accountants, to determine whether the call tracking system accurately 
tracks payphone calls to completion.
    (b) By the effective date of these rules, each Completing Carrier in 
paragraph (a) of this section must file an audit report from the auditor 
(the ``System Audit Report'') regarding the Completing Carrier's 
compliance with Sec. 64.1310(a)(1) as of the date of the audit:
    (1) With the Commission's Secretary in CC Docket No. 96-128;
    (2) With each payphone service provider for which it completes calls 
and a Completing Carrier may comply with this paragraph's requirement to 
file copies of the System Audit Report with each payphone service 
provider by posting the System Audit Report on its website or a 
clearinghouse website; and
    (3) With each facilities-based long distance carrier from which it 
receives payphone calls.
    (c) The Completing Carrier must comply with, and the third-party 
auditor must verify, the Completing Carrier's compliance with the 
following factors in establishing a call tracking system pursuant to 
Sec. 64.1310(a)(1):
    (1) Whether the Completing Carrier's procedures accurately track 
calls to completion;
    (2) Whether the Completing Carrier has a person or persons 
responsible for tracking, compensating, and resolving disputes 
concerning payphone completed calls;
    (3) Whether the Completing Carrier has effective data monitoring 
procedures;
    (4) Whether the Completing Carrier adheres to established protocols 
to ensure that any software, personnel or any other network changes do 
not adversely affect its payphone call tracking ability;
    (5) Whether the Completing Carrier has created a compensable 
payphone call file by matching call detail records against payphone 
identifiers;
    (6) Whether the Completing Carrier has procedures to incorporate 
call data into required reports;
    (7) Whether the Completing Carrier has implemented procedures and 
controls needed to resolve payphone compensation disputes;
    (8) Whether the independent third-party auditor can test all 
critical controls and procedures to verify that errors are 
insubstantial; and
    (9) Whether the Completing Carriers has in place adequate and 
effective business rules for implementing and paying payphone 
compensation, including rules used to:
    (i) Identify calls originated from payphones;
    (ii) Identify compensable payphone calls;
    (iii) Identify incomplete or otherwise noncompensable calls; and
    (iv) Determine the identities of the payphone service providers to 
which the Completing Carrier owes compensation.
    (d) Consistent with standards established by the American Institute 
of Certified Public Accountants for attestation engagements, the System 
Audit Report shall consist of:
    (1) The Completing Carrier's representation concerning its 
compliance; and
    (2) The independent auditor's opinion concerning the Completing 
Carrier's representation of compliance. The Completing Carrier's 
representation must disclose
    (i) Its criteria for identifying calls originating from payphones;
    (ii) Its criteria for identifying compensable payphone calls;
    (iii) Its criteria for identifying incomplete or otherwise 
noncompensable calls;

[[Page 388]]

    (iv) Its criteria used to determine the identities of the payphone 
service providers to which the completing carrier owes compensation;
    (v) The identity of any clearinghouses the Completing Carrier uses; 
and
    (vi) The types of information that the Completing Carrier needs from 
the payphone service providers in order to compensate them.
    (e) At the time of filing of a System Audit Report with the 
Commission, the Completing Carrier shall file with the Commission's 
Secretary, the payphone service providers and the facilities-based long 
distance carriers identified in paragraph (b) of this section, a 
statement that includes the name of the Completing Carrier, and the 
name, address and phone number for the person or persons responsible for 
handling the Completing Carrier's payphone compensation and for 
resolving disputes with payphone service providers over compensation, 
and this statement shall be updated within 60 days of any changes of 
such persons. If a Completing Carrier chooses to notify payphone service 
providers of this statement and its System Audit Report by posting these 
two documents on its website or a clearinghouse website, then this 
statement shall include the web address for these two documents.
    (f) One year after the filing of the System Audit Report, and 
annually thereafter, the Completing Carrier shall engage an independent 
third-party auditor to:
    (1) Verify that no material changes have occurred concerning the 
Completing Carrier's compliance with the criteria of the prior year's 
System Audit Report; or
    (2) If a material change has occurred concerning the Completing 
Carrier's compliance with the prior year's System Audit Report, verify 
that the material changes do not affect compliance with the audit 
criteria set forth in paragraph (c) of this section. The Completing 
Carrier must fully disclose any material changes concerning its call 
tracking system in its representation to the auditor. The Completing 
Carrier shall file and provide copies of all System Audit Reports 
pursuant to the procedures set forth in paragraph (b) of this section.
    (g) Subject to protections safeguarding the auditor's and the 
Completing Carrier's confidential and proprietary information, the 
Completing Carrier shall provide, upon request, to the payphone service 
provider for inspection any documents, including working papers, 
underlying the System Audit Report.

[68 FR 62756, Nov. 6, 2003, as amended at 70 FR 723, Jan. 5, 2005]



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

interest payphones.

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

[61 FR 52323, Oct. 7, 1996, as amended at 71 FR 65751, Nov. 9, 2006]



Sec. 64.1340  Right to negotiate.

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

[61 FR 52323, Oct. 7, 1996]

[[Page 389]]



                   Subpart N_Expanded Interconnection



Sec. 64.1401  Expanded interconnection.

    (a) Every local exchange carrier that is classified as a Class A 
company under Sec. 32.11 of this chapter and that is not a National 
Exchange Carrier Association interstate tariff participant, as provided 
in part 69, subpart G of this chapter, shall offer expanded 
interconnection for interstate special access services at their central 
offices that are classified as end offices or serving wire centers, and 
at other rating points used for interstate special access.
    (b) The local exchange carriers specified in paragraph (a) of this 
section shall offer expanded interconnection for interstate switched 
transport services:
    (1) In their central offices that are classified as end offices or 
serving wire centers, as well as at all tandem offices housed in 
buildings containing such carriers' end offices or serving wire centers 
for which interstate switched transport expanded interconnection has 
been tariffed;
    (2) Upon bona fide request, in tandem offices housed in buildings 
not containing such carriers' end offices or serving wire centers, or in 
buildings containing the carriers' end offices or serving wire centers 
for which interstate switched transport expanded interconnection has not 
been tariffed; and
    (3) Upon bona fide request, at remote nodes/switches that serve as 
rating points for interstate switched transport and that are capable of 
routing outgoing interexchange access traffic to interconnectors and in 
which interconnectors can route terminating traffic to such carriers. No 
such carrier is required to enhance remote nodes/switches or to build 
additional space to accommodate interstate switched transport expanded 
interconnection at these locations.
    (c) The local exchange carriers specified in paragraph (a) of this 
section shall offer expanded interconnection for interstate special 
access and switched transport services through virtual collocation, 
except that they may offer physical collocation, instead of virtual 
collocation, in specific central offices, as a service subject to non-
streamlined communications common carrier regulation under Title II of 
the Communications Act (47 U.S.C. 201-228).
    (d) For the purposes of this subpart, physical collocation means an 
offering that enables interconnectors:
    (1) To place their own equipment needed to terminate basic 
transmission facilities, including optical terminating equipment and 
multiplexers, within or upon the local exchange carrier's central office 
buildings;
    (2) To use such equipment to connect interconnectors' fiber optic 
systems or microwave radio transmission facilities (where reasonably 
feasible) with the local exchange carrier's equipment and facilities 
used to provide interstate special access services;
    (3) To enter the local exchange carrier's central office buildings, 
subject to reasonable terms and conditions, to install, maintain, and 
repair the equipment described in paragraph (d)(1) of this section; and
    (4) To obtain reasonable amounts of space in central offices for the 
equipment described in paragraph (d)(1) of this section, allocated on a 
first-come, first-served basis.
    (e) For purposes of this subpart, virtual collocation means an 
offering that enables interconnectors:
    (1) To designate or specify equipment needed to terminate basic 
transmission facilities, including optical terminating equipment and 
multiplexers, to be located within or upon the local exchange carrier's 
buildings, and dedicated to such interconnectors' use,
    (2) To use such equipment to connect interconnectors' fiber optic 
systems or microwave radio transmission facilities (where reasonably 
feasible) with the local exchange carrier's equipment and facilities 
used to provide interstate special and switched access services, and
    (3) To monitor and control their communications channels terminating 
in such equipment.
    (f) Under both physical collocation offering and virtual collocation 
offerings for expanded interconnection of fiber optic facilities, local 
exchange carriers shall provide:

[[Page 390]]

    (1) An interconnection point or points at which the fiber optic 
cable carrying an interconnectors' circuits can enter each local 
exchange carrier location, provided that the local exchange carrier 
shall designate interconnection points as close as reasonably possible 
to each location; and
    (2) At least two such interconnection points at any local exchange 
carrier location at which there are at least two entry points for the 
local exchange carrier's cable facilities, and space is available for 
new facilities in at least two of those entry points.
    (g) The local exchange carriers specified in paragraph (a) of this 
section shall offer signalling for tandem switching, as defined in Sec. 
69.2(vv) of this chapter, at central offices that are classified as 
equal office end offices or serving wire centers, or at signal transfer 
points if such information is offered via common channel signalling.

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



Sec. 64.1402  Rights and responsibilities of interconnectors.

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

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



    Subpart O_Interstate Pay-Per-Call and Other Information Services

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



Sec. 64.1501  Definitions.

    For purposes of this subpart, the following definitions shall apply:
    (a) Pay-per-call service means any service:
    (1) In which any person provides or purports to provide:
    (i) Audio information or audio entertainment produced or packaged by 
such person;
    (ii) Access to simultaneous voice conversation services; or
    (iii) Any service, including the provision of a product, the charges 
for which are assessed on the basis of the completion of the call;
    (2) For which the caller pays a per-call or per-time-interval charge 
that is greater than, or in addition to, the charge for transmission of 
the call; and
    (3) Which is accessed through use of a 900 number;
    (4) Provided, however, such term does not include directory services 
provided by a common carrier or its affiliate or by a local exchange 
carrier or its affiliate, or any service for which users are assessed 
charges only after entering into a presubscription or comparable 
arrangement with the provider of such service.
    (b) Presubscription or comparable arrangement means a contractual 
agreement in which:
    (1) The service provider clearly and conspicuously discloses to the 
consumer all material terms and conditions associated with the use of 
the service, including the service provider's name and address, a 
business telephone number which the consumer may use to obtain 
additional information or to register a complaint, and the rates for the 
service;
    (2) The service provider agrees to notify the consumer of any future 
rate changes;
    (3) The consumer agrees to use the service on the terms and 
conditions disclosed by the service provider; and
    (4) The service provider requires the use of an identification 
number or

[[Page 391]]

other means to prevent unauthorized access to the service by 
nonsubscribers;
    (5) Provided, however, that disclosure of a credit, prepaid account, 
debit, charge, or calling card number, along with authorization to bill 
that number, made during the course of a call to an information service 
shall constitute a presubscription or comparable arrangement if an 
introductory message containing the information specified in Sec. 
64.1504(c)(2) is provided prior to, and independent of, assessment of 
any charges. No other action taken by a consumer during the course of a 
call to an information service, for which charges are assessed, can 
create a presubscription or comparable arrangement.
    (6) Provided, that a presubscription arrangement to obtain 
information services provided by means of a toll-free number shall 
conform to the requirements of Sec. 64.1504(c).
    (c) Calling card means an identifying number or code unique to the 
individual, that is issued to the individual by a common carrier and 
enables the individual to be charged by means of a phone bill for 
charges incurred independent of where the call originates.

[61 FR 39087, July 26, 1996]



Sec. 64.1502  Limitations on the provision of pay-per-call services.

    Any common carrier assigning a telephone number to a provider of 
interstate pay-per-call service shall require, by contract or tariff, 
that such provider comply with the provisions of this subpart and of 
titles II and III of the Telephone Disclosure and Dispute Resolution Act 
(Pub. L. No. 102-556) (TDDRA) and the regulations prescribed by the 
Federal Trade Commission pursuant to those titles.



Sec. 64.1503  Termination of pay-per-call and other information programs.

    (a) Any common carrier assigning a telephone number to a provider of 
interstate pay-per-call service shall specify by contract or tariff that 
pay-per-call programs not in compliance with Sec. 64.1502 shall be 
terminated following written notice to the information provider. The 
information provider shall be afforded a period of no less than seven 
and no more than 14 days during which a program may be brought into 
compliance. Programs not in compliance at the expiration of such period 
shall be terminated immediately.
    (b) Any common carrier providing transmission or billing and 
collection services to a provider of interstate information service 
through any 800 telephone number, or other telephone number advertised 
or widely understood to be toll-free, shall promptly investigate any 
complaint that such service is not provided in accordance with Sec. 
64.1504 or Sec. 64.1510(c), and, if the carrier reasonably determines 
that the complaint is valid, may terminate the provision of service to 
an information provider unless the provider supplies evidence of a 
written agreement that meets the requirements of this Sec. 
64.1504(c)(1).

[61 FR 39087, July 26, 1996]



Sec. 64.1504  Restrictions on the use of toll-free numbers.

    A common carrier shall prohibit by tariff or contract the use of any 
800 telephone number, or other telephone number advertised or widely 
understood to be toll-free, in a manner that would result in:
    (a) The calling party or the subscriber to the originating line 
being assessed, by virtue of completing the call, a charge for a call;
    (b) The calling party being connected to a pay-per-call service;
    (c) The calling party being charged for information conveyed during 
the call unless:
    (1) The calling party has a written agreement (including an 
agreement transmitted through electronic medium) that specifies the 
material terms and conditions under which the information is offered and 
includes:
    (i) The rate at which charges are assessed for the information;
    (ii) The information provider's name;
    (iii) The information provider's business address;
    (iv) The information provider's regular business telephone number;
    (v) The information provider's agreement to notify the subscriber at 
least one billing cycle in advance of all future changes in the rates 
charged for the information;

[[Page 392]]

    (vi) The subscriber's choice of payment method, which may be by 
direct remit, debit, prepaid account, phone bill, or credit or calling 
card and, if a subscriber elects to pay by means of phone bill, a clear 
explanation that the subscriber will be assessed for calls made to the 
information service from the subscriber's phone line;
    (vii) A unique personal identification number or other subscriber-
specific identifier that must be used to obtain access to the 
information service and instructions on its use, and, in addition, 
assures that any charges for services accessed by use of the 
subscriber's personal identification number or subscriber-specific 
identifier be assessed to subscriber's source of payment elected 
pursuant to paragraph (c)(1)(vi) of this section; or
    (2) The calling party is charged for the information by means of a 
credit, prepaid, debit, charge, or calling card and the information 
service provider includes in response to each call an introductory 
message that:
    (i) Clearly states that there is a charge for the call;
    (ii) Clearly states the service's total cost per minute and any 
other fees for the service or for any service to which the caller may be 
transferred;
    (iii) Explains that the charges must be billed on either a credit, 
prepaid, debit, charge, or calling card;
    (iv) Asks the caller for the card number;
    (v) Clearly states that charges for the call begin at the end of the 
introductory message; and
    (vi) Clearly states that the caller can hang up at or before the end 
of the introductory message without incurring any charge whatsoever.
    (d) The calling party being called back collect for the provision of 
audio or data information services, simultaneous voice conversation 
services, or products; and
    (e) The calling party being assessed by virtue of the caller being 
asked to connect or otherwise transfer to a pay-per-call service, a 
charge for the call.
    (f) Provided, however, that:
    (1) Notwithstanding paragraph (c)(1) of this section, a written 
agreement that meets the requirements of that paragraph is not required 
for:
    (i) Calls utilizing telecommunications devices for the deaf;
    (ii) Directory services provided by a common carrier or its 
affiliate or by a local exchange carrier or its affiliate; or
    (iii) Any purchase of goods or of services that are not information 
services.
    (2) The requirements of paragraph (c)(2) of this section shall not 
apply to calls from repeat callers using a bypass mechanism to avoid 
listening to the introductory message: Provided, That information 
providers shall disable such a bypass mechanism after the institution of 
any price increase for a period of time determined to be sufficient by 
the Federal Trade Commission to give callers adequate and sufficient 
notice of a price increase.

[61 FR 39087, July 26, 1996, as amended at 69 FR 61154, Oct. 15, 2004]



Sec. 64.1505  Restrictions on collect telephone calls.

    (a) No common carrier shall provide interstate transmission or 
billing and collection services to an entity offering any service within 
the scope of Sec. 64.1501(a)(1) that is billed to a subscriber on a 
collect basis at a per-call or per-time-interval charge that is greater 
than, or in addition to, the charge for transmission of the call.
    (b) No common carrier shall provide interstate transmission services 
for any collect information services billed to a subscriber at a 
tariffed rate unless the called party has taken affirmative action 
clearly indicating that it accepts the charges for the collect service.



Sec. 64.1506  Number designation.

    Any interstate service described in Sec. 64.1501(a)(1)-(2), and not 
subject to the exclusions contained in Sec. 64.1501(a)(4), shall be 
offered only through telephone numbers beginning with a 900 service 
access code.

[59 FR 46770, Sept. 12, 1994]



Sec. 64.1507  Prohibition on disconnection or interruption of service for 

failure to remit pay-per-call and similar service charges.

    No common carrier shall disconnect or interrupt in any manner, or 
order the disconnection or interruption of, a

[[Page 393]]

telephone subscriber's local exchange or long distance telephone service 
as a result of that subscriber's failure to pay:
    (a) Charges for interstate pay-per-call service;
    (b) Charges for interstate information services provided pursuant to 
a presubscription or comparable arrangement; or
    (c) Charges for interstate information services provided on a 
collect basis which have been disputed by the subscriber.

[58 FR 44773, Aug. 25, 1993, as amended at 59 FR 46770, Sept. 12, 1994]



Sec. 64.1508  Blocking access to 900 service.

    (a) Local exchange carriers must offer to their subscribers, where 
technically feasible, an option to block access to services offered on 
the 900 service access code. Blocking is to be offered at no charge, on 
a one-time basis, to:
    (1) All telephone subscribers during the period from November 1, 
1993 through December 31, 1993; and
    (2) Any subscriber who subscribes to a new telephone number for a 
period of 60 days after the new number is effective.
    (b) For blocking requests not within the one-time option or outside 
the time frames specified in paragraph (a) of this section, and for 
unblocking requests, local exchange carriers may charge a reasonable 
one-time fee. Requests by subscribers to remove 900 services blocking 
must be in writing.
    (c) The terms and conditions under which subscribers may obtain 900 
services blocking are to be included in tariffs filed with this 
Commission.



Sec. 64.1509  Disclosure and dissemination of pay-per-call information.

    (a) Any common carrier assigning a telephone number to a provider of 
interstate pay-per-call services shall make readily available, at no 
charge, to Federal and State agencies and all other interested persons:
    (1) A list of the telephone numbers for each of the pay-per-call 
services it carries;
    (2) A short description of each such service;
    (3) A statement of the total cost or the cost per minute and any 
other fees for each such service; and
    (4) A statement of the pay-per-call service provider's name, 
business address, and business telephone number.
    (b) Any common carrier assigning a telephone number to a provider of 
interstate pay-per-call services and offering billing and collection 
services to such provider shall:
    (1) Establish a local or toll-free telephone number to answer 
questions and provide information on subscribers' rights and obligations 
with regard to their use of pay-per-call services and to provide to 
callers the name and mailing address of any provider of pay-per-call 
services offered by that carrier; and
    (2) Provide to all its telephone subscribers, either directly or 
through contract with any local exchange carrier providing billing and 
collection services to that carrier, a disclosure statement setting 
forth all rights and obligations of the subscriber and the carrier with 
respect to the use and payment of pay-per-call services. Such statement 
must include the prohibition against disconnection of basic 
communications services for failure to pay pay-per-call charges 
established by Sec. 64.1507, the right of a subscriber to obtain 
blocking in accordance with Sec. 64.1508, the right of a subscriber not 
to be billed for pay-per-call services not offered in compliance with 
federal laws and regulations established by Sec. 64.1510(a)(1), and the 
possibility that a subscriber's access to 900 services may be 
involuntarily blocked pursuant to Sec. 64.1512 for failure to pay 
legitimate pay-per-call charges. Disclosure statements must be forwarded 
to:
    (i) All telephone subscribers no later than 60 days after these 
regulations take effect;
    (ii) All new telephone subscribers no later than 60 days after 
service is established;
    (iii) All telephone subscribers requesting service at a new location 
no later than 60 days after service is established; and

[[Page 394]]

    (iv) Thereafter, to all subscribers at least once per calendar year, 
at intervals of not less than 6 months nor more than 18 months.

[58 FR 44773, Aug. 25, 1993, as amended at 61 FR 55582, Oct. 28, 1996]



Sec. 64.1510  Billing and collection of pay-per-call and similar service 

charges.

    (a) Any common carrier assigning a telephone number to a provider of 
interstate pay-per-call services and offering billing and collection 
services to such provider shall:
    (1) Ensure that a subscriber is not billed for interstate pay-per-
call services that such carrier knows or reasonably should know were 
provided in violation of the regulations set forth in this subpart or 
prescribed by the Federal Trade Commission pursuant to titles II or III 
of the TDDRA or any other federal law;
    (2) In any billing to telephone subscribers that includes charges 
for any interstate pay-per-call service:
    (i) Include a statement indicating that:
    (A) Such charges are for non-communications services;
    (B) Neither local nor long distances services can be disconnected 
for non-payment although an information provider may employ private 
entities to seek to collect such charges;
    (C) 900 number blocking is available upon request; and
    (D) Access to pay-per-call services may be involuntarily blocked for 
failure to pay legitimate charges;
    (ii) Display any charges for pay-per-call services in a part of the 
bill that is identified as not being related to local and long distance 
telephone charges;
    (iii) Specify, for each pay-per-call charge made, the type of 
service, the amount of the charge, and the date, time, and, for calls 
billed on a time-sensitive basis, the duration of the call; and
    (iv) Identify the local or toll-free number established in 
accordance with Sec. 64.1509(b)(1).
    (b) Any common carrier offering billing and collection services to 
an entity providing interstate information services on a collect basis 
shall, to the extent possible, display the billing information in the 
manner described in paragraphs (a)(2)(i), (A), (B), (D) and (a)(2)(ii) 
of this section.
    (c) If a subscriber elects, pursuant to Sec. 64.1504(c)(1)(vi), to 
pay by means of a phone bill for any information service provided by 
through any 800 telephone number, or other telephone number advertised 
or widely understood to be toll-free, the phone bill shall:
    (1) Include, in prominent type, the following disclaimer: ``Common 
carriers may not disconnect local or long distance telephone service for 
failure to pay disputed charges for information services;'' and
    (2) Clearly list the 800 or other toll-free number dialed.

[58 FR 44773, Aug. 25, 1993, as amended at 59 FR 46771, Sept. 12, 1994; 
61 FR 39088, July 26, 1996]



Sec. 64.1511  Forgiveness of charges and refunds.

    (a) Any carrier assigning a telephone number to a provider of 
interstate pay-per-call services or providing transmission for 
interstate information services provided pursuant to a presubscription 
or comparable arrangement or on a collect basis, and providing billing 
and collection for such services, shall establish procedures for the 
handling of subscriber complaints regarding charges for those services. 
A billing carrier is afforded discretion to set standards for 
determining when a subscriber's complaint warrants forgiveness, refund 
or credit of interstate pay-per-call or information services charges 
provided that such charges must be forgiven, refunded, or credited when 
a subscriber has complained about such charges and either this 
Commission, the Federal Trade Commission, or a court of competent 
jurisdiction has found or the carrier has determined, upon 
investigation, that the service has been offered in violation of federal 
law or the regulations that are either set forth in this subpart or 
prescribed by the Federal Trade Commission pursuant to titles II or III 
of the TDDRA. Carriers shall observe the record retention requirements 
set forth in Sec. 42.6 of this chapter except that relevant records 
shall be retained by carriers beyond the requirements of part 42 of this 
chapter when a complaint is

[[Page 395]]

pending at the time the specified retention period expires.
    (b) Any carrier assigning a telephone number to a provider of 
interstate pay-per-call services but not providing billing and 
collection services for such services, shall, by tariff or contract, 
require that the provider and/or its billing and collection agents have 
in place procedures whereby, upon complaint, pay-per-call charges may be 
forgiven, refunded, or credited, provided that such charges must be 
forgiven, refunded, or credited when a subscriber has complained about 
such charges and either this Commission, the Federal Trade Commission, 
or a court of competent jurisdiction has found or the carrier has 
determined, upon investigation, that the service has been offered in 
violation of federal law or the regulations that are either set forth in 
this subpart or prescribed by the Federal Trade Commission pursuant to 
titles II or III of the TDDRA.

[58 FR 44773, Aug. 25, 1993, as amended at 59 FR 46771, Sept. 12, 1994]



Sec. 64.1512  Involuntary blocking of pay-per-call services.

    Nothing in this subpart shall preclude a common carrier or 
information provider from blocking or ordering the blocking of its 
interstate pay-per-call programs from numbers assigned to subscribers 
who have incurred, but not paid, legitimate pay-per-call charges, except 
that a subscriber who has filed a complaint regarding a particular pay-
per-call program pursuant to procedures established by the Federal Trade 
Commission under title III of the TDDRA shall not be involuntarily 
blocked from access to that program while such a complaint is pending. 
This restriction is not intended to preclude involuntary blocking when a 
carrier or IP has decided in one instance to sustain charges against a 
subscriber but that subscriber files additional separate complaints.



Sec. 64.1513  Verification of charitable status.

    Any common carrier assigning a telephone number to a provider of 
interstate pay-per-call services that the carrier knows or reasonably 
should know is engaged in soliciting charitable contributions shall 
obtain verification that the entity or individual for whom contributions 
are solicited has been granted tax exempt status by the Internal Revenue 
Service.



Sec. 64.1514  Generation of signalling tones.

    No common carrier shall assign a telephone number for any pay-per-
call service that employs broadcast advertising which generates the 
audible tones necessary to complete a call to a pay-per-call service.



Sec. 64.1515  Recovery of costs.

    No common carrier shall recover its cost of complying with the 
provisions of this subpart from local or long distance ratepayers.



            Subpart P_Calling Party Telephone Number; Privacy

    Source: 59 FR 18319, Apr. 18, 1994, unless otherwise noted.



Sec. 64.1600  Definitions.

    (a) Aggregate information. The term ``aggregate information'' means 
collective data that relate to a group or category of services or 
customers, from which individual customer identities or characteristics 
have been removed.
    (b) ANI. The term ``ANI'' (automatic number identification) refers 
to the delivery of the calling party's billing number by a local 
exchange carrier to any interconnecting carrier for billing or routing 
purposes, and to the subsequent delivery of such number to end users.
    (c) Caller identification information. The term ``caller 
identification information'' means information provided by a caller 
identification service regarding the telephone number of, or other 
information regarding the origination of, a call made using a 
telecommunications service or interconnected VoIP service.
    (d) Caller identification service. The term ``caller identification 
service'' means any service or device designed to provide the user of 
the service or device with the telephone number of, or

[[Page 396]]

other information regarding the origination of, a call made using a 
telecommunications service or interconnected VoIP service.
    (e) Calling party number. The term ``Calling Party Number'' refers 
to the subscriber line number or the directory number contained in the 
calling party number parameter of the call set-up message associated 
with an interstate call on a Signaling System 7 network.
    (f) Intermediate Provider. The term Intermediate Provider means any 
entity that carries or processes traffic that traverses or will traverse 
the PSTN at any point insofar as that entity neither originates nor 
terminates that traffic.
    (g) Charge number. The term ``charge number'' refers to the delivery 
of the calling party's billing number in a Signaling System 7 
environment by a local exchange carrier to any interconnecting carrier 
for billing or routing purposes, and to the subsequent delivery of such 
number to end users.
    (h) Information regarding the origination. The term ``information 
regarding the origination'' means any:
    (1) Telephone number;
    (2) Portion of a telephone number, such as an area code;
    (3) Name;
    (4) Location information;
    (5) Billing number information, including charge number, ANI, or 
pseudo-ANI; or
    (6) Other information regarding the source or apparent source of a 
telephone call.
    (i) Interconnected VoIP service. The term ``interconnected VoIP 
service'' has the same meaning given the term ``interconnected VoIP 
service'' in 47 CFR 9.3 as it currently exists or may hereafter be 
amended.
    (j) Privacy indicator. The term ``Privacy Indicator'' refers to 
information, contained in the calling party number parameter of the call 
set-up message associated with an interstate call on an Signaling System 
7 network, that indicates whether the calling party authorizes 
presentation of the calling party number to the called party.
    (k) Signaling System 7. The term ``Signaling System 7'' (SS7) refers 
to a carrier to carrier out-of-band signaling network used for call 
routing, billing and management.

[60 FR 29490, June 5, 1995, as amended at 76 FR 43205, July 20, 2011; 76 
FR 73882, Nov. 29, 2011]



Sec. 64.1601  Delivery requirements and privacy restrictions.

    (a) Delivery. Except as provided in paragraphs (d) and (e) of this 
section:
    (1) Telecommunications carriers and providers of interconnected 
Voice over Internet Protocol (VoIP) services, in originating interstate 
or intrastate traffic on the public switched telephone network (PSTN) or 
originating interstate or intrastate traffic that is destined for the 
PSTN (collectively ``PSTN Traffic''), are required to transmit for all 
PSTN Traffic the telephone number received from or assigned to or 
otherwise associated with the calling party to the next provider in the 
path from the originating provider to the terminating provider. This 
provision applies regardless of the voice call signaling and 
transmission technology used by the carrier or VoIP provider. Entities 
subject to this provision that use Signaling System 7 (SS7) are required 
to transmit the calling party number (CPN) associated with all PSTN 
Traffic in the SS7 ISUP (ISDN User Part) CPN field to interconnecting 
providers, and are required to transmit the calling party's charge 
number (CN) in the SS7 ISUP CN field to interconnecting providers for 
any PSTN Traffic where CN differs from CPN. Entities subject to this 
provision who use multi-frequency (MF) signaling are required to 
transmit CPN, or CN if it differs from CPN, associated with all PSTN 
Traffic in the MF signaling automatic numbering information (ANI) field.
    (2) Intermediate providers within an interstate or intrastate call 
path that originates and/or terminates on the PSTN must pass unaltered 
to subsequent providers in the call path signaling information 
identifying the telephone number, or billing number, if different, of 
the calling party that is received with a call. This requirement applies 
to SS7 information including but not limited to CPN and CN, and

[[Page 397]]

also applies to MF signaling information or other signaling information 
intermediate providers receive with a call. This requirement also 
applies to VoIP signaling messages, such as calling party and charge 
information identifiers contained in Session Initiation Protocol (SIP) 
header fields, and to equivalent identifying information as used in 
other VoIP signaling technologies, regardless of the voice call 
signaling and transmission technology used by the carrier or VoIP 
provider.
    (b) Privacy. Except as provided in paragraph (d) of this section, 
originating carriers using Signaling System 7 and offering or 
subscribing to any service based on Signaling System 7 functionality 
will recognize *67 dialed as the first three digits of a call (or 1167 
for rotary or pulse dialing phones) as a caller's request that the CPN 
not be passed on an interstate call. Such carriers providing line 
blocking services will recognize *82 as a caller's request that the CPN 
be passed on an interstate call. No common carrier subscribing to or 
offering any service that delivers CPN may override the privacy 
indicator associated with an interstate call. Carriers must arrange 
their CPN-based services, and billing practices, in such a manner that 
when a caller requests that the CPN not be passed, a carrier may not 
reveal that caller's number or name, nor may the carrier use the number 
or name to allow the called party to contact the calling party. The 
terminating carrier must act in accordance with the privacy indicator 
unless the call is made to a called party that subscribes to an ANI or 
charge number based service and the call is paid for by the called 
party.
    (c) Charges. No common carrier subscribing to or offering any 
service that delivers calling party number may
    (1) Impose on the calling party charges associated with per call 
blocking of the calling party's telephone number, or
    (2) Impose charges upon connecting carriers for the delivery of the 
calling party number parameter or its associated privacy indicator.
    (d) Exemptions. Section 64.1601(a) and (b) shall not apply when:
    (1) A call originates from a payphone.
    (2) A local exchange carrier with Signaling System 7 capability does 
not have the software to provide *67 or *82 functionalities. Such 
carriers are prohibited from passing CPN.
    (3) A Private Branch Exchange or Centrex system does not pass end 
user CPN. Centrex systems that rely on *6 or *8 for a function other 
than CPN blocking or unblocking, respectively, are also exempt if they 
employ alternative means of blocking or unblocking.
    (4) CPN delivery--
    (i) Is used solely in connection with calls within the same limited 
system, including (but not limited to) a Centrex system, virtual private 
network, or Private Branch Exchange;
    (ii) Is used on a public agency's emergency telephone line or in 
conjunction with 911 emergency services, or on any entity's emergency 
assistance poison control telephone line; or
    (iii) Is provided in connection with legally authorized call tracing 
or trapping procedures specifically requested by a law enforcement 
agency.
    (e) Any person or entity that engages in telemarketing, as defined 
in section 64.1200(f)(10) must transmit caller identification 
information.
    (1) For purposes of this paragraph, caller identification 
information must include either CPN or ANI, and, when available by the 
telemarketer's carrier, the name of the telemarketer. It shall not be a 
violation of this paragraph to substitute (for the name and phone number 
used in, or billed for, making the call) the name of the seller on 
behalf of which the telemarketing call is placed and the seller's 
customer service telephone number. The telephone number so provided must 
permit any individual to make a do-not-call request during regular 
business hours.
    (2) Any person or entity that engages in telemarketing is prohibited 
from blocking the transmission of caller identification information.
    (3) Tax-exempt nonprofit organizations are not required to comply 
with this paragraph.

[60 FR 29490, June 5, 1995; 60 FR 54449, Oct. 24, 1995, as amended at 62 
FR 34015, June 24, 1997; 68 FR 44179, July 25, 2003; 71 FR 75122, Dec. 
14, 2006; 76 FR 73882, Nov. 29, 2011]

[[Page 398]]



Sec. 64.1602  Restrictions on use and sale of telephone subscriber information 

provided pursuant to automatic number identification or charge number 

services.

    (a) Any common carrier providing Automatic Number Identification or 
charge number services on interstate calls to any person shall provide 
such services under a contract or tariff containing telephone subscriber 
information requirements that comply with this subpart. Such 
requirements shall:
    (1) Permit such person to use the telephone number and billing 
information for billing and collection, routing, screening, and 
completion of the originating telephone subscriber's call or 
transaction, or for services directly related to the originating 
telephone subscriber's call or transaction;
    (2) Prohibit such person from reusing or selling the telephone 
number or billing information without first
    (i) Notifying the originating telephone subscriber and,
    (ii) Obtaining the affirmative consent of such subscriber for such 
reuse or sale; and,
    (3) Prohibit such person from disclosing, except as permitted by 
paragraphs (a) (1) and (2) of this section, any information derived from 
the automatic number identification or charge number service for any 
purpose other than
    (i) Performing the services or transactions that are the subject of 
the originating telephone subscriber's call,
    (ii) Ensuring network performance security, and the effectiveness of 
call delivery,
    (iii) Compiling, using, and disclosing aggregate information, and
    (iv) Complying with applicable law or legal process.
    (b) The requirements imposed under paragraph (a) of the section 
shall not prevent a person to whom automatic number identification or 
charge number services are provided from using
    (1) The telephone number and billing information provided pursuant 
to such service, and
    (2) Any information derived from the automatic number identification 
or charge number service, or from the analysis of the characteristics of 
a telecommunications transmission, to offer a product or service that is 
directly related to the products or services previously acquired by that 
customer from such person. Use of such information is subject to the 
requirements of 47 CFR 64.1200 and 64.1504(c).

[60 FR 29490, June 5, 1995]



Sec. 64.1603  Customer notification.

    Any common carrier participating in the offering of services 
providing calling party number, ANI, or charge number on interstate 
calls must notify its subscribers, individually or in conjunction with 
other carriers, that their telephone numbers may be identified to a 
called party. Such notification must be made not later than December 1, 
1995, and at such times thereafter as to ensure notice to subscribers. 
The notification must be effective in informing subscribers how to 
maintain privacy by dialing *67 (or 1167 for rotary or pulse-dialing 
phones) on interstate calls. The notice shall inform subscribers whether 
dialing *82 (or 1182 for rotary or pulse-dialing phones) on interstate 
calls is necessary to present calling party number to called parties. 
For ANI or charge number services for which such privacy is not 
provided, the notification shall inform subscribers of the restrictions 
on the reuse or sale of subscriber information.

[60 FR 29491, June 5, 1995; 60 FR 54449, Oct. 24, 1995]



Sec. 64.1604  Prohibition on transmission of inaccurate or misleading caller 

identification information.

    (a) No person or entity in the United States shall, with the intent 
to defraud, cause harm, or wrongfully obtain anything of value, 
knowingly cause, directly or indirectly, any caller identification 
service to transmit or display misleading or inaccurate caller 
identification information.
    (b) Exemptions. Paragraph (a) of this section shall not apply to:
    (1) Lawfully authorized investigative, protective, or intelligence 
activity of a law enforcement agency of the United States, a State, or a 
political subdivision of a State, or of an intelligence agency of the 
United States; or
    (2) Activity engaged in pursuant to a court order that specifically 
authorizes

[[Page 399]]

the use of caller identification manipulation.
    (c) A person or entity that blocks or seeks to block a caller 
identification service from transmitting or displaying that person or 
entity's own caller identification information pursuant to Sec. 
64.1601(b) of this part shall not be liable for violating the 
prohibition in paragraph (a) of this section. This paragraph (c) does 
not relieve any person or entity that engages in telemarketing, as 
defined in Sec. 64.1200(f)(10) of this part, of the obligation to 
transmit caller identification information under Sec. 64.1601(e).

[76 FR 43205, July 20, 2011]



Sec. 64.1605  Effective date.

    The provisions of Sec. Sec. 64.1600 and 64.1602 are effective April 
12, 1995. The provisions of Sec. Sec. 64.1601 and 64.1603 are effective 
December 1, 1995, except Sec. Sec. 64.1601 and 64.1603 do not apply to 
public payphones and partylines until January 1, 1997.

[60 FR 29491, June 5, 1995; 60 FR 54449, Oct. 24, 1995. Redesignated at 
76 FR 43205, July 20, 2011]



Subpart Q_Implementation of Section 273(d)(5) of the Communications Act: 

            Dispute Resolution Regarding Equipment Standards

    Source: 61 FR 24903, May 17, 1996, unless otherwise noted.



Sec. 64.1700  Purpose and scope.

    The purpose of this subpart is to implement the Telecommunications 
Act of 1996 which amended the Communications Act by creating section 
273(d)(5), 47 U.S.C. 273(d)(5). Section 273(d) sets forth procedures to 
be followed by non-accredited standards development organizations when 
these organizations set industry-wide standards and generic requirements 
for telecommunications equipment or customer premises equipment. The 
statutory procedures allow outside parties to fund and participate in 
setting the organization's standards and require the organization and 
the parties to develop a process for resolving any technical disputes. 
In cases where all parties cannot agree to a mutually satisfactory 
dispute resolution process, section 273(d)(5) requires the Commission to 
prescribe a dispute resolution process.



Sec. 64.1701  Definitions.

    For purposes of this subpart, the terms accredited standards 
development organization, funding party, generic requirement, and 
industry-wide have the same meaning as found in 47 U.S.C. 273.



Sec. 64.1702  Procedures.

    If a non-accredited standards development organization (NASDO) and 
the funding parties are unable to agree unanimously on a dispute 
resolution process prior to publishing a text for comment pursuant to 47 
U.S.C. 273(d)(4)(A)(v), a funding party may use the default dispute 
resolution process set forth in section 64.1703.



Sec. 64.1703  Dispute resolution default process.

    (a) Tri-Partite Panel. Technical disputes governed by this section 
shall be resolved in accordance with the recommendation of a three-
person panel, subject to a vote of the funding parties in accordance 
with paragraph (b) of this section. Persons who participated in the 
generic requirements or standards development process are eligible to 
serve on the panel. The panel shall be selected and operate as follows:
    (1) Within two (2) days of the filing of a dispute with the NASDO 
invoking the dispute resolution default process, both the funding party 
seeking dispute resolution and the NASDO shall select a representative 
to sit on the panel;
    (2) Within four (4) days of their selection, the two panelists shall 
select a neutral third panel member to create a tri-partite panel;
    (3) The tri-partite panel shall, at a minimum, review the proposed 
text of the NASDO and any explanatory material provided to the funding 
parties by the NASDO, the comments and any alternative text provided by 
the funding party seeking dispute resolution, any relevant standards 
which have been established or which are under development by an 
accredited-standards development organization, and any comments 
submitted by other funding parties;

[[Page 400]]

    (4) Any party in interest submitting information to the panel for 
consideration (including the NASDO, the party seeking dispute resolution 
and the other funding parties) shall be asked by the panel whether there 
is knowledge of patents, the use of which may be essential to the 
standard or generic requirement being considered. The fact that the 
question was asked along with any affirmative responses shall be 
recorded, and considered, in the panel's recommendation; and
    (5) The tri-partite panel shall, within fifteen (15) days after 
being established, decide by a majority vote, the issue or issues raised 
by the party seeking dispute resolution and produce a report of their 
decision to the funding parties. The tri-partite panel must adopt one of 
the five options listed below:
    (i) The NASDO's proposal on the issue under consideration;
    (ii) The position of the party seeking dispute resolution on the 
issue under consideration;
    (iii) A standard developed by an accredited standards development 
organization that addresses the issue under consideration;
    (iv) A finding that the issue is not ripe for decision due to 
insufficient technical evidence to support the soundness of any one 
proposal over any other proposal; or
    (v) Any other resolution that is consistent with the standard 
described in section 64.1703(a)(6).
    (6) The tri-partite panel must choose, from the five options 
outlined above, the option that they believe provides the most 
technically sound solution and base its recommendation upon the 
substantive evidence presented to the panel. The panel is not precluded 
from taking into account complexity of implementation and other 
practical considerations in deciding which option is most technically 
sound. Neither of the disputants (i.e., the NASDO and the funding party 
which invokes the dispute resolution process) will be permitted to 
participate in any decision to reject the mediation panel's 
recommendation.
    (b) The tri-partite panel's recommendation(s) must be included in 
the final industry-wide standard or industry-wide generic requirement, 
unless three-fourths of the funding parties who vote decide within 
thirty (30) days of the filing of the dispute to reject the 
recommendation and accept one of the options specified in paragraphs 
(a)(5) (i) through (v) of this section. Each funding party shall have 
one vote.
    (c) All costs sustained by the tri-partite panel will be 
incorporated into the cost of producing the industry-wide standard or 
industry-wide generic requirement.



Sec. 64.1704  Frivolous disputes/penalties.

    (a) No person shall willfully refer a dispute to the dispute 
resolution process under this subpart unless to the best of his 
knowledge, information and belief there is good ground to support the 
dispute and the dispute is not interposed for delay.
    (b) Any person who fails to comply with the requirements in 
paragraph (a) of this section, may be subject to forfeiture pursuant to 
section 503(b) of the Communications Act, 47 U.S.C. 503(b).



        Subpart R_Geographic Rate Averaging and Rate Integration

    Authority: 47 U.S.C. Sec. Sec. 151, 154(i), 201-205, 214(e), 215 
and 254(g).



Sec. 64.1801  Geographic rate averaging and rate integration.

    (a) The rates charged by providers of interexchange 
telecommunications services to subscribers in rural and high-cost areas 
shall be no higher than the rates charged by each such provider to its 
subscribers in urban areas.
    (b) A provider of interstate interexchange telecommunications 
services shall provide such services to its subscribers in each U.S. 
state at rates no higher than the rates charged to its subscribers in 
any other state.

[61 FR 42564, Aug. 16, 1996]

[[Page 401]]



  Subpart S_Nondominant Interexchange Carrier Certifications Regarding 

       Geographic Rate Averaging and Rate Integration Requirements



Sec. 64.1900  Nondominant interexchange carrier certifications regarding 

geographic rate averaging and rate integration requirements.

    (a) A nondominant provider of interexchange telecommunications 
services, which provides detariffed interstate, domestic, interexchange 
services, shall file with the Commission, on an annual basis, a 
certification that it is providing such services in compliance with its 
geographic rate averaging and rate integration obligations pursuant to 
section 254(g) of the Communications Act of 1934, as amended.
    (b) The certification filed pursuant to paragraph (a) of this 
section shall be signed by an officer of the company under oath.

[61 FR 59366, Nov. 22, 1996]



  Subpart T_Separate Affiliate Requirements for Incumbent Independent 

  Local Exchange Carriers That Provide In-Region, Interstate Domestic 

Interexchange Services or In-Region International Interexchange Services

    Source: 62 FR 36017, July 3, 1997, unless otherwise noted.



Sec. 64.1901  Basis and purpose.

    (a) Basis. These rules are issued pursuant to the Communications Act 
of 1934, as amended.
    (b) Purpose. The purpose of these rules is to regulate the provision 
of in-region, interstate, domestic, interexchange services and in-region 
international interexchange services by incumbent independent local 
exchange carriers.



Sec. 64.1902  Terms and definitions.

    Terms used in this part have the following meanings:
    Books of account. Books of account refer to the financial accounting 
system a company uses to record, in monetary terms, the basic 
transactions of a company. These books of account reflect the company's 
assets, liabilities, and equity, and the revenues and expenses from 
operations. Each company has its own separate books of account.
    Incumbent Independent Local Exchange Carrier (Incumbent Independent 
LEC). The term incumbent independent local exchange carrier means, with 
respect to an area, the independent local exchange carrier that:
    (1) On February 8, 1996, provided telephone exchange service in such 
area; and
    (2)(i) On February 8, 1996, was deemed to be a member of the 
exchange carrier association pursuant to Sec. 69.601(b) of this title; 
or
    (ii) Is a person or entity that, on or after February 8, 1996, 
became a successor or assign of a member described in paragraph (2)(i) 
of this section. The Commission may also, by rule, treat an independent 
local exchange carrier as an incumbent independent local exchange 
carrier pursuant to section 251(h)(2) of the Communications Act of 1934, 
as amended.
    Independent Local Exchange Carrier (Independent LEC). Independent 
local exchange carriers are local exchange carriers, including GTE, 
other than the BOCs.
    Independent Local Exchange Carrier Affiliate (Independent LEC 
Affiliate). An independent local exchange carrier affiliate is a carrier 
that is owned (in whole or in part) or controlled by, or under common 
ownership (in whole or in part) or control with, an independent local 
exchange carrier.
    In-region service. In-region service means telecommunications 
service originating in an independent local exchange carrier's local 
service areas or 800 service, private line service, or their equivalents 
that:
    (1) Terminate in the independent LEC's local exchange areas; and
    (2) Allow the called party to determine the interexchange carrier, 
even if the service originates outside the independent LEC's local 
exchange areas.
    Local Exchange Carrier. The term local exchange carrier means any 
person that is engaged in the provision of

[[Page 402]]

telephone exchange service or exchange access. Such term does not 
include a person insofar as such person is engaged in the provision of a 
commercial mobile service under section 332(c), except to the extent 
that the Commission finds that such service should be included in the 
definition of that term.

[64 FR 44425, Aug. 16, 1999]



Sec. 64.1903  Obligations of all incumbent independent local exchange 

carriers.

    (a) An incumbent independent LEC providing in-region, interstate, 
interexchange services or in-region international interexchange services 
shall provide such services through an affiliate that satisfies the 
following requirements:
    (1) The affiliate shall maintain separate books of account from its 
affiliated exchange companies. Nothing in this section requires the 
affiliate to maintain separate books of account that comply with part 32 
of this title;
    (2) The affiliate shall not jointly own transmission or switching 
facilities with its affiliated exchange companies. Nothing in this 
section prohibits an affiliate from sharing personnel or other resources 
or assets with an affiliated exchange company; and
    (3) The affiliate shall acquire any services from its affiliated 
exchange companies for which the affiliated exchange companies are 
required to file a tariff at tariffed rates, terms, and conditions. 
Nothing in this section shall prohibit the affiliate from acquiring any 
unbundled network elements or exchange services for the provision of a 
telecommunications service from its affiliated exchange companies, 
subject to the same terms and conditions as provided in an agreement 
approved under section 252 of the Communications Act of 1934, as 
amended.
    (b) Except as provided in paragraph (b)(1) of this section, the 
affiliate required in paragraph (a) of this section shall be a separate 
legal entity from its affiliated exchange companies. The affiliate may 
be staffed by personnel of its affiliated exchange companies, housed in 
existing offices of its affiliated exchange companies, and use its 
affiliated exchange companies' marketing and other services, subject to 
paragraph (a)(3) of this section.
    (1) For an incumbent independent LEC that provides in-region, 
interstate domestic interexchange services or in-region international 
interexchange services using no interexchange switching or transmission 
facilities or capability of the LEC's own (i.e., ``independent LEC 
reseller,'') the affiliate required in paragraph (a) of this section may 
be a separate corporate division of such incumbent independent LEC. All 
other provisions of this Subpart applicable to an independent LEC 
affiliate shall continue to apply, as applicable, to such separate 
corporate division.
    (2) [Reserved]

[64 FR 44425, Aug. 16, 1999, as amended at 71 FR 65751, Nov. 9, 2006]



           Subpart U_Customer Proprietary Network Information

    Source: 63 FR 20338, Apr. 24, 1998, unless otherwise noted.



Sec. 64.2001  Basis and purpose.

    (a) Basis. The rules in this subpart are issued pursuant to the 
Communications Act of 1934, as amended.
    (b) Purpose. The purpose of the rules in this subpart is to 
implement section 222 of the Communications Act of 1934, as amended, 47 
U.S.C. 222.



Sec. 64.2003  Definitions.

    (a) Account information. ``Account information'' is information that 
is specifically connected to the customer's service relationship with 
the carrier, including such things as an account number or any component 
thereof, the telephone number associated with the account, or the bill's 
amount.
    (b) Address of record. An ``address of record,'' whether postal or 
electronic, is an address that the carrier has associated with the 
customer's account for at least 30 days.
    (c) Affiliate. The term ``affiliate'' has the same meaning given 
such term in section 3(1) of the Communications Act of 1934, as amended, 
47 U.S.C. 153(1).
    (d) Call detail information. Any information that pertains to the 
transmission of specific telephone calls, including, for outbound calls, 
the number

[[Page 403]]

called, and the time, location, or duration of any call and, for inbound 
calls, the number from which the call was placed, and the time, 
location, or duration of any call.
    (e) Communications-related services. The term ``communications-
related services'' means telecommunications services, information 
services typically provided by telecommunications carriers, and services 
related to the provision or maintenance of customer premises equipment.
    (f) Customer. A customer of a telecommunications carrier is a person 
or entity to which the telecommunications carrier is currently providing 
service.
    (g) Customer proprietary network information (CPNI). The term 
``customer proprietary network information (CPNI)'' has the same meaning 
given to such term in section 222(h)(1) of the Communications Act of 
1934, as amended, 47 U.S.C. 222(h)(1).
    (h) Customer premises equipment (CPE). The term ``customer premises 
equipment (CPE)'' has the same meaning given to such term in section 
3(14) of the Communications Act of 1934, as amended, 47 U.S.C. 153(14).
    (i) Information services typically provided by telecommunications 
carriers. The phrase ``information services typically provided by 
telecommunications carriers'' means only those information services (as 
defined in section 3(20) of the Communication Act of 1934, as amended, 
47 U.S.C. 153(20)) that are typically provided by telecommunications 
carriers, such as Internet access or voice mail services. Such phrase 
``information services typically provided by telecommunications 
carriers,'' as used in this subpart, shall not include retail consumer 
services provided using Internet Web sites (such as travel reservation 
services or mortgage lending services), whether or not such services may 
otherwise be considered to be information services.
    (j) Local exchange carrier (LEC). The term ``local exchange carrier 
(LEC)'' has the same meaning given to such term in section 3(26) of the 
Communications Act of 1934, as amended, 47 U.S.C. 153(26).
    (k) Opt-in approval. The term ``opt-in approval'' refers to a method 
for obtaining customer consent to use, disclose, or permit access to the 
customer's CPNI. This approval method requires that the carrier obtain 
from the customer affirmative, express consent allowing the requested 
CPNI usage, disclosure, or access after the customer is provided 
appropriate notification of the carrier's request consistent with the 
requirements set forth in this subpart.
    (l) Opt-out approval. The term ``opt-out approval'' refers to a 
method for obtaining customer consent to use, disclose, or permit access 
to the customer's CPNI. Under this approval method, a customer is deemed 
to have consented to the use, disclosure, or access to the customer's 
CPNI if the customer has failed to object thereto within the waiting 
period described in Sec. 64.2008(d)(1) after the customer is provided 
appropriate notification of the carrier's request for consent consistent 
with the rules in this subpart.
    (m) Readily available biographical information. ``Readily available 
biographical information'' is information drawn from the customer's life 
history and includes such things as the customer's social security 
number, or the last four digits of that number; mother's maiden name; 
home address; or date of birth.
    (n) Subscriber list information (SLI). The term ``subscriber list 
information (SLI)'' has the same meaning given to such term in section 
222(h)(3) of the Communications Act of 1934, as amended, 47 U.S.C. 
222(h)(3).
    (o) Telecommunications carrier or carrier. The terms 
``telecommunications carrier'' or ``carrier'' shall have the same 
meaning as set forth in section 3(44) of the Communications Act of 1934, 
as amended, 47 U.S.C. 153(44). For the purposes of this subpart, the 
term ``telecommunications carrier'' or ``carrier'' shall include an 
entity that provides interconnected VoIP service, as that term is 
defined in section 9.3 of these rules.
    (p) Telecommunications service. The term ``telecommunications 
service'' has the same meaning given to such term in section 3(46) of 
the Communications Act of 1934, as amended, 47 U.S.C. 153(46).

[[Page 404]]

    (q) Telephone number of record. The telephone number associated with 
the underlying service, not the telephone number supplied as a 
customer's ``contact information.''
    (r) Valid photo ID. A ``valid photo ID'' is a government-issued 
means of personal identification with a photograph such as a driver's 
license, passport, or comparable ID that is not expired.

[72 FR 31961, June 8, 2007]



Sec. 64.2005  Use of customer proprietary network information without customer 

approval.

    (a) Any telecommunications carrier may use, disclose, or permit 
access to CPNI for the purpose of providing or marketing service 
offerings among the categories of service (i.e., local, interexchange, 
and CMRS) to which the customer already subscribes from the same 
carrier, without customer approval.
    (1) If a telecommunications carrier provides different categories of 
service, and a customer subscribes to more than one category of service 
offered by the carrier, the carrier is permitted to share CPNI among the 
carrier's affiliated entities that provide a service offering to the 
customer.
    (2) If a telecommunications carrier provides different categories of 
service, but a customer does not subscribe to more than one offering by 
the carrier, the carrier is not permitted to share CPNI with its 
affiliates, except as provided in Sec. 64.2007(b).
    (b) A telecommunications carrier may not use, disclose, or permit 
access to CPNI to market to a customer service offerings that are within 
a category of service to which the subscriber does not already subscribe 
from that carrier, unless that carrier has customer approval to do so, 
except as described in paragraph (c) of this section.
    (1) A wireless provider may use, disclose, or permit access to CPNI 
derived from its provision of CMRS, without customer approval, for the 
provision of CPE and information service(s). A wireline carrier may use, 
disclose or permit access to CPNI derived from its provision of local 
exchange service or interexchange service, without customer approval, 
for the provision of CPE and call answering, voice mail or messaging, 
voice storage and retrieval services, fax store and forward, and 
protocol conversion.
    (2) A telecommunications carrier may not use, disclose or permit 
access to CPNI to identify or track customers that call competing 
service providers. For example, a local exchange carrier may not use 
local service CPNI to track all customers that call local service 
competitors.
    (c) A telecommunications carrier may use, disclose, or permit access 
to CPNI, without customer approval, as described in this paragraph (c).
    (1) A telecommunications carrier may use, disclose, or permit access 
to CPNI, without customer approval, in its provision of inside wiring 
installation, maintenance, and repair services.
    (2) CMRS providers may use, disclose, or permit access to CPNI for 
the purpose of conducting research on the health effects of CMRS.
    (3) LECs, CMRS providers, and entities that provide interconnected 
VoIP service as that term is defined in Sec. 9.3 of this chapter, may 
use CPNI, without customer approval, to market services formerly known 
as adjunct-to-basic services, such as, but not limited to, speed 
dialing, computer-provided directory assistance, call monitoring, call 
tracing, call blocking, call return, repeat dialing, call tracking, call 
waiting, caller I.D., call forwarding, and certain centrex features.
    (d) A telecommunications carrier may use, disclose, or permit access 
to CPNI to protect the rights or property of the carrier, or to protect 
users of those services and other carriers from fraudulent, abusive, or 
unlawful use of, or subscription to, such services.

[63 FR 20338, Apr. 24, 1998, as amended at 64 FR 53264, Oct. 1, 1999; 67 
FR 59211, Sept. 20, 2002; 72 FR 31962, June 8, 2007]



Sec. 64.2007  Approval required for use of customer proprietary network 

information.

    (a) A telecommunications carrier may obtain approval through 
written, oral or electronic methods.
    (1) A telecommunications carrier relying on oral approval shall bear 
the burden of demonstrating that such approval has been given in 
compliance

[[Page 405]]

with the Commission's rules in this part.
    (2) Approval or disapproval to use, disclose, or permit access to a 
customer's CPNI obtained by a telecommunications carrier must remain in 
effect until the customer revokes or limits such approval or 
disapproval.
    (3) A telecommunications carrier must maintain records of approval, 
whether oral, written or electronic, for at least one year.
    (b) Use of Opt-Out and Opt-In Approval Processes. A 
telecommunications carrier may, subject to opt-out approval or opt-in 
approval, use its customer's individually identifiable CPNI for the 
purpose of marketing communications-related services to that customer. A 
telecommunications carrier may, subject to opt-out approval or opt-in 
approval, disclose its customer's individually identifiable CPNI, for 
the purpose of marketing communications-related services to that 
customer, to its agents and its affiliates that provide communications-
related services. A telecommunications carrier may also permit such 
persons or entities to obtain access to such CPNI for such purposes. 
Except for use and disclosure of CPNI that is permitted without customer 
approval under section Sec. 64.2005, or that is described in this 
paragraph, or as otherwise provided in section 222 of the Communications 
Act of 1934, as amended, a telecommunications carrier may only use, 
disclose, or permit access to its customer's individually identifiable 
CPNI subject to opt-in approval.

[67 FR 59212, Sept. 20, 2002, as amended at 72 FR 31962, June 8, 2007]



Sec. 64.2008  Notice required for use of customer proprietary network 

information.

    (a) Notification, Generally. (1) Prior to any solicitation for 
customer approval, a telecommunications carrier must provide 
notification to the customer of the customer's right to restrict use of, 
disclosure of, and access to that customer's CPNI.
    (2) A telecommunications carrier must maintain records of 
notification, whether oral, written or electronic, for at least one 
year.
    (b) Individual notice to customers must be provided when soliciting 
approval to use, disclose, or permit access to customers' CPNI.
    (c) Content of Notice. Customer notification must provide sufficient 
information to enable the customer to make an informed decision as to 
whether to permit a carrier to use, disclose, or permit access to, the 
customer's CPNI.
    (1) The notification must state that the customer has a right, and 
the carrier has a duty, under federal law, to protect the 
confidentiality of CPNI.
    (2) The notification must specify the types of information that 
constitute CPNI and the specific entities that will receive the CPNI, 
describe the purposes for which CPNI will be used, and inform the 
customer of his or her right to disapprove those uses, and deny or 
withdraw access to CPNI at any time.
    (3) The notification must advise the customer of the precise steps 
the customer must take in order to grant or deny access to CPNI, and 
must clearly state that a denial of approval will not affect the 
provision of any services to which the customer subscribes. However, 
carriers may provide a brief statement, in clear and neutral language, 
describing consequences directly resulting from the lack of access to 
CPNI.
    (4) The notification must be comprehensible and must not be 
misleading.
    (5) If written notification is provided, the notice must be clearly 
legible, use sufficiently large type, and be placed in an area so as to 
be readily apparent to a customer.
    (6) If any portion of a notification is translated into another 
language, then all portions of the notification must be translated into 
that language.
    (7) A carrier may state in the notification that the customer's 
approval to use CPNI may enhance the carrier's ability to offer products 
and services tailored to the customer's needs. A carrier also may state 
in the notification that it may be compelled to disclose CPNI to any 
person upon affirmative written request by the customer.
    (8) A carrier may not include in the notification any statement 
attempting to encourage a customer to freeze third-party access to CPNI.

[[Page 406]]

    (9) The notification must state that any approval, or denial of 
approval for the use of CPNI outside of the service to which the 
customer already subscribes from that carrier is valid until the 
customer affirmatively revokes or limits such approval or denial.
    (10) A telecommunications carrier's solicitation for approval must 
be proximate to the notification of a customer's CPNI rights.
    (d) Notice Requirements Specific to Opt-Out. A telecommunications 
carrier must provide notification to obtain opt-out approval through 
electronic or written methods, but not by oral communication (except as 
provided in paragraph (f) of this section). The contents of any such 
notification must comply with the requirements of paragraph (c) of this 
section.
    (1) Carriers must wait a 30-day minimum period of time after giving 
customers notice and an opportunity to opt-out before assuming customer 
approval to use, disclose, or permit access to CPNI. A carrier may, in 
its discretion, provide for a longer period. Carriers must notify 
customers as to the applicable waiting period for a response before 
approval is assumed.
    (i) In the case of an electronic form of notification, the waiting 
period shall begin to run from the date on which the notification was 
sent; and
    (ii) In the case of notification by mail, the waiting period shall 
begin to run on the third day following the date that the notification 
was mailed.
    (2) Carriers using the opt-out mechanism must provide notices to 
their customers every two years.
    (3) Telecommunications carriers that use e-mail to provide opt-out 
notices must comply with the following requirements in addition to the 
requirements generally applicable to notification:
    (i) Carriers must obtain express, verifiable, prior approval from 
consumers to send notices via e-mail regarding their service in general, 
or CPNI in particular;
    (ii) Carriers must allow customers to reply directly to e-mails 
containing CPNI notices in order to opt-out;
    (iii) Opt-out e-mail notices that are returned to the carrier as 
undeliverable must be sent to the customer in another form before 
carriers may consider the customer to have received notice;
    (iv) Carriers that use e-mail to send CPNI notices must ensure that 
the subject line of the message clearly and accurately identifies the 
subject matter of the e-mail; and
    (v) Telecommunications carriers must make available to every 
customer a method to opt-out that is of no additional cost to the 
customer and that is available 24 hours a day, seven days a week. 
Carriers may satisfy this requirement through a combination of methods, 
so long as all customers have the ability to opt-out at no cost and are 
able to effectuate that choice whenever they choose.
    (e) Notice Requirements Specific to Opt-In. A telecommunications 
carrier may provide notification to obtain opt-in approval through oral, 
written, or electronic methods. The contents of any such notification 
must comply with the requirements of paragraph (c) of this section.
    (f) Notice Requirements Specific to One-Time Use of CPNI. (1) 
Carriers may use oral notice to obtain limited, one-time use of CPNI for 
inbound and outbound customer telephone contacts for the duration of the 
call, regardless of whether carriers use opt-out or opt-in approval 
based on the nature of the contact.
    (2) The contents of any such notification must comply with the 
requirements of paragraph (c) of this section, except that 
telecommunications carriers may omit any of the following notice 
provisions if not relevant to the limited use for which the carrier 
seeks CPNI:
    (i) Carriers need not advise customers that if they have opted-out 
previously, no action is needed to maintain the opt-out election;
    (ii) Carriers need not advise customers that they may share CPNI 
with their affiliates or third parties and need not name those entities, 
if the limited CPNI usage will not result in use by, or disclosure to, 
an affiliate or third party;
    (iii) Carriers need not disclose the means by which a customer can 
deny or withdraw future access to CPNI, so long as carriers explain to 
customers

[[Page 407]]

that the scope of the approval the carrier seeks is limited to one-time 
use; and
    (iv) Carriers may omit disclosure of the precise steps a customer 
must take in order to grant or deny access to CPNI, as long as the 
carrier clearly communicates that the customer can deny access to his 
CPNI for the call.

[67 FR 59212, Sept. 20, 2002]



Sec. 64.2009  Safeguards required for use of customer proprietary network 

information.

    (a) Telecommunications carriers must implement a system by which the 
status of a customer's CPNI approval can be clearly established prior to 
the use of CPNI.
    (b) Telecommunications carriers must train their personnel as to 
when they are and are not authorized to use CPNI, and carriers must have 
an express disciplinary process in place.
    (c) All carriers shall maintain a record, electronically or in some 
other manner, of their own and their affiliates' sales and marketing 
campaigns that use their customers' CPNI. All carriers shall maintain a 
record of all instances where CPNI was disclosed or provided to third 
parties, or where third parties were allowed access to CPNI. The record 
must include a description of each campaign, the specific CPNI that was 
used in the campaign, and what products and services were offered as a 
part of the campaign. Carriers shall retain the record for a minimum of 
one year.
    (d) Telecommunications carriers must establish a supervisory review 
process regarding carrier compliance with the rules in this subpart for 
outbound marketing situations and maintain records of carrier compliance 
for a minimum period of one year. Specifically, sales personnel must 
obtain supervisory approval of any proposed outbound marketing request 
for customer approval.
    (e) A telecommunications carrier must have an officer, as an agent 
of the carrier, sign and file with the Commission a compliance 
certificate on an annual basis. The officer must state in the 
certification that he or she has personal knowledge that the company has 
established operating procedures that are adequate to ensure compliance 
with the rules in this subpart. The carrier must provide a statement 
accompanying the certificate explaining how its operating procedures 
ensure that it is or is not in compliance with the rules in this 
subpart. In addition, the carrier must include an explanation of any 
actions taken against data brokers and a summary of all customer 
complaints received in the past year concerning the unauthorized release 
of CPNI. This filing must be made annually with the Enforcement Bureau 
on or before March 1 in EB Docket No. 06-36, for data pertaining to the 
previous calendar year.
    (f) Carriers must provide written notice within five business days 
to the Commission of any instance where the opt-out mechanisms do not 
work properly, to such a degree that consumers' inability to opt-out is 
more than an anomaly.
    (1) The notice shall be in the form of a letter, and shall include 
the carrier's name, a description of the opt-out mechanism(s) used, the 
problem(s) experienced, the remedy proposed and when it will be/was 
implemented, whether the relevant state commission(s) has been notified 
and whether it has taken any action, a copy of the notice provided to 
customers, and contact information.
    (2) Such notice must be submitted even if the carrier offers other 
methods by which consumers may opt-out.

[63 FR 20338, Apr. 24, 1998, as amended at 64 FR 53264, Oct. 1, 1999; 67 
FR 59213, Sept. 20, 2002; 72 FR 31962, June 8, 2007]



Sec. 64.2010  Safeguards on the disclosure of customer proprietary network 

information.

    (a) Safeguarding CPNI. Telecommunications carriers must take 
reasonable measures to discover and protect against attempts to gain 
unauthorized access to CPNI. Telecommunications carriers must properly 
authenticate a customer prior to disclosing CPNI based on customer-
initiated telephone contact, online account access, or an in-store 
visit.
    (b) Telephone access to CPNI. Telecommunications carriers may only 
disclose call detail information over the telephone, based on customer-
initiated

[[Page 408]]

telephone contact, if the customer first provides the carrier with a 
password, as described in paragraph (e) of this section, that is not 
prompted by the carrier asking for readily available biographical 
information, or account information. If the customer does not provide a 
password, the telecommunications carrier may only disclose call detail 
information by sending it to the customer's address of record, or by 
calling the customer at the telephone number of record. If the customer 
is able to provide call detail information to the telecommunications 
carrier during a customer-initiated call without the telecommunications 
carrier's assistance, then the telecommunications carrier is permitted 
to discuss the call detail information provided by the customer.
    (c) Online access to CPNI. A telecommunications carrier must 
authenticate a customer without the use of readily available 
biographical information, or account information, prior to allowing the 
customer online access to CPNI related to a telecommunications service 
account. Once authenticated, the customer may only obtain online access 
to CPNI related to a telecommunications service account through a 
password, as described in paragraph (e) of this section, that is not 
prompted by the carrier asking for readily available biographical 
information, or account information.
    (d) In-store access to CPNI. A telecommunications carrier may 
disclose CPNI to a customer who, at a carrier's retail location, first 
presents to the telecommunications carrier or its agent a valid photo ID 
matching the customer's account information.
    (e) Establishment of a Password and Back-up Authentication Methods 
for Lost or Forgotten Passwords. To establish a password, a 
telecommunications carrier must authenticate the customer without the 
use of readily available biographical information, or account 
information. Telecommunications carriers may create a back-up customer 
authentication method in the event of a lost or forgotten password, but 
such back-up customer authentication method may not prompt the customer 
for readily available biographical information, or account information. 
If a customer cannot provide the correct password or the correct 
response for the back-up customer authentication method, the customer 
must establish a new password as described in this paragraph.
    (f) Notification of account changes. Telecommunications carriers 
must notify customers immediately whenever a password, customer response 
to a back-up means of authentication for lost or forgotten passwords, 
online account, or address of record is created or changed. This 
notification is not required when the customer initiates service, 
including the selection of a password at service initiation. This 
notification may be through a carrier-originated voicemail or text 
message to the telephone number of record, or by mail to the address of 
record, and must not reveal the changed information or be sent to the 
new account information.
    (g) Business customer exemption. Telecommunications carriers may 
bind themselves contractually to authentication regimes other than those 
described in this section for services they provide to their business 
customers that have both a dedicated account representative and a 
contract that specifically addresses the carriers' protection of CPNI.

[72 FR 31962, June 8, 2007]



Sec. 64.2011  Notification of customer proprietary network information 

security breaches.

    (a) A telecommunications carrier shall notify law enforcement of a 
breach of its customers' CPNI as provided in this section. The carrier 
shall not notify its customers or disclose the breach publicly, whether 
voluntarily or under state or local law or these rules, until it has 
completed the process of notifying law enforcement pursuant to paragraph 
(b) of this section.
    (b) As soon as practicable, and in no event later than seven (7) 
business days, after reasonable determination of the breach, the 
telecommunications carrier shall electronically notify the United States 
Secret Service (USSS) and the Federal Bureau of Investigation (FBI) 
through a central reporting facility. The Commission will maintain

[[Page 409]]

a link to the reporting facility at http://www.fcc.gov/eb/cpni.
    (1) Notwithstanding any state law to the contrary, the carrier shall 
not notify customers or disclose the breach to the public until 7 full 
business days have passed after notification to the USSS and the FBI 
except as provided in paragraphs (b)(2) and (b)(3) of this section.
    (2) If the carrier believes that there is an extraordinarily urgent 
need to notify any class of affected customers sooner than otherwise 
allowed under paragraph (b)(1) of this section, in order to avoid 
immediate and irreparable harm, it shall so indicate in its notification 
and may proceed to immediately notify its affected customers only after 
consultation with the relevant investigating agency. The carrier shall 
cooperate with the relevant investigating agency's request to minimize 
any adverse effects of such customer notification.
    (3) If the relevant investigating agency determines that public 
disclosure or notice to customers would impede or compromise an ongoing 
or potential criminal investigation or national security, such agency 
may direct the carrier not to so disclose or notify for an initial 
period of up to 30 days. Such period may be extended by the agency as 
reasonably necessary in the judgment of the agency. If such direction is 
given, the agency shall notify the carrier when it appears that public 
disclosure or notice to affected customers will no longer impede or 
compromise a criminal investigation or national security. The agency 
shall provide in writing its initial direction to the carrier, any 
subsequent extension, and any notification that notice will no longer 
impede or compromise a criminal investigation or national security and 
such writings shall be contemporaneously logged on the same reporting 
facility that contains records of notifications filed by carriers.
    (c) Customer notification. After a telecommunications carrier has 
completed the process of notifying law enforcement pursuant to paragraph 
(b) of this section, it shall notify its customers of a breach of those 
customers' CPNI.
    (d) Recordkeeping. All carriers shall maintain a record, 
electronically or in some other manner, of any breaches discovered, 
notifications made to the USSS and the FBI pursuant to paragraph (b) of 
this section, and notifications made to customers. The record must 
include, if available, dates of discovery and notification, a detailed 
description of the CPNI that was the subject of the breach, and the 
circumstances of the breach. Carriers shall retain the record for a 
minimum of 2 years.
    (e) Definitions. As used in this section, a ``breach'' has occurred 
when a person, without authorization or exceeding authorization, has 
intentionally gained access to, used, or disclosed CPNI.
    (f) This section does not supersede any statute, regulation, order, 
or interpretation in any State, except to the extent that such statute, 
regulation, order, or interpretation is inconsistent with the provisions 
of this section, and then only to the extent of the inconsistency.

[72 FR 31963, June 8, 2007]

Subparts V-W [Reserved]



                  Subpart X_Subscriber List Information

    Source: 64 FR 53947, Oct. 5, 2000, unless otherwise noted.



Sec. 64.2301  Basis and purpose.

    (a) Basis. These rules are issued pursuant to the Communications Act 
of 1934, as amended.
    (b) Purpose. The purpose of these rules is to implement section 
222(e) of the Communications Act of 1934, as amended, 47 U.S.C. 222. 
Section 222(e) requires that ``a telecommunications carrier that 
provides telephone exchange service shall provide subscriber list 
information gathered in its capacity as a provider of such service on a 
timely and unbundled basis, under nondiscriminatory and reasonable 
rates, terms, and conditions, to any person upon request for the purpose 
of publishing directories in any format.''



Sec. 64.2305  Definitions.

    Terms used in this subpart have the following meanings:

[[Page 410]]

    (a) Base file subscriber list information. A directory publisher 
requests base file subscriber list information when the publisher 
requests, as of a given date, all of a carrier's subscriber list 
information that the publisher wishes to include in one or more 
directories.
    (b) Business subscriber. Business subscriber refers to a subscriber 
to telephone exchange service for businesses.
    (c) Primary advertising classification. A primary advertising 
classification is the principal business heading under which a 
subscriber to telephone exchange service for businesses chooses to be 
listed in the yellow pages, if the carrier either assigns that heading 
or is obligated to provide yellow pages listings as part of telephone 
exchange service to businesses. In other circumstances, a primary 
advertising classification is the classification of a subscriber to 
telephone exchange service as a business subscriber.
    (d) Residential subscriber. Residential subscriber refers to a 
subscriber to telephone exchange service that is not a business 
subscriber.
    (e) Subscriber list information. Subscriber list information is any 
information:
    (1) Identifying the listed names of subscribers of a carrier and 
such subscribers' telephone numbers, addresses, or primary advertising 
classifications (as such classifications are assigned at the time of the 
establishment of such service), or any combination of such listed names, 
numbers, addresses, or classifications; and
    (2) That the carrier or an affiliate has published, caused to be 
published, or accepted for publication in any directory format.
    (f) Telecommunications carrier. A telecommunications carrier is any 
provider of telecommunications services, except that such term does not 
include aggregators of telecommunications services (as defined in 47 
U.S.C. 226(a)(2)).
    (g) Telephone exchange service. Telephone exchange service means:
    (1) Service within a telephone exchange, or within a connected 
system of telephone exchanges within the same exchange area operated to 
furnish to subscribers intercommunicating service of the character 
ordinarily furnished by a single exchange, and which is covered by the 
exchange service charge, or
    (B) Comparable service provided through a system of switches, 
transmission equipment, or other facilities (or combination thereof) by 
which a subscriber can originate and terminate a telecommunications 
service.
    (h) Updated subscriber list information. A directory publisher 
requests updated subscriber list information when the publisher requests 
changes to all or any part of a carrier's subscriber list information 
occurring between specified dates.



Sec. 64.2309  Provision of subscriber list information.

    (a) A telecommunications carrier that provides telephone exchange 
service shall provide subscriber list information gathered in its 
capacity as a provider of such service on a timely and unbundled basis, 
under nondiscriminatory and reasonable rates, terms, and conditions, to 
any person upon request for the purpose of publishing directories in any 
format.
    (b) The obligation under paragraph (a) to provide a particular 
telephone subscriber's subscriber list information extends only to the 
carrier that provides that subscriber with telephone exchange service.



Sec. 64.2313  Timely basis.

    (a) For purposes of Sec. 64.2309, a telecommunications carrier 
provides subscriber list information on a timely basis only if the 
carrier provides the requested information to the requesting directory 
publisher either:
    (1) At the time at which, or according to the schedule under which, 
the directory publisher requests that the subscriber list information be 
provided;
    (2) When the carrier does not receive at least thirty days advance 
notice of the time the directory publisher requests that subscriber list 
information be provided, on the first business day that is at least 
thirty days from date the carrier receives that request; or
    (3) At a time determined in accordance with paragraph (b) of this 
section.
    (b) If a carrier's internal systems do not permit the carrier to 
provide subscriber list information within either

[[Page 411]]

of the time frames specified in paragraph (a)(1) of this section, the 
carrier shall:
    (1) Within thirty days of receiving the publisher's request, inform 
the directory publisher that the requested schedule cannot be 
accommodated and tell the directory publisher which schedules can be 
accommodated; and
    (2) Adhere to the schedule the directory publisher chooses from 
among the available schedules.



Sec. 64.2317  Unbundled basis.

    (a) A directory publisher may request that a carrier unbundle 
subscriber list information on any basis for the purpose of publishing 
one or more directories.
    (b) For purposes of Sec. 64.2309, a telecommunications carrier 
provides subscriber list information on an unbundled basis only if the 
carrier provides:
    (1) The listings the directory publisher requests and no other 
listings, products, or services; or
    (2) Subscriber list information on a basis determined in accordance 
with paragraph (c) of this section.
    (c) If the carrier's internal systems do not permit it unbundle 
subscriber list information on the basis a directory publisher requests, 
the carrier must:
    (1) Within thirty days of receiving the publisher's request, inform 
the directory publisher that it cannot unbundle subscriber list 
information on the requested basis and tell the directory publisher the 
bases on which the carrier can unbundle subscriber list information; and
    (2) In accordance with paragraph (d) of this section, provide 
subscriber list information to the directory publisher unbundled on the 
basis the directory publisher chooses from among the available bases.
    (d) If a carrier provides a directory publisher listings in addition 
to those the directory publisher requests, the carrier may impose 
charges for, and the directory publisher may publish, only the requested 
listings.
    (e) A carrier must not require directory publishers to purchase any 
product or service other than subscriber list information as a condition 
of obtaining subscriber list information.



Sec. 64.2321  Nondiscriminatory rates, terms, and conditions.

    For purposes of Sec. 64.2309, a telecommunications carrier provides 
subscriber list information under nondiscriminatory rates, terms, and 
conditions only if the carrier provides subscriber list information 
gathered in its capacity as a provider of telephone exchange service to 
a requesting directory publisher at the same rates, terms, and 
conditions that the carrier provides the information to its own 
directory publishing operation, its directory publishing affiliate, or 
other directory publishers.



Sec. 64.2325  Reasonable rates, terms, and conditions.

    (a) For purposes of Sec. 64.2309, a telecommunications carrier will 
be presumed to provide subscriber list information under reasonable 
rates if its rates are no more than $0.04 a listing for base file 
subscriber list information and no more than $0.06 a listing for updated 
subscriber list information.
    (b) For purposes of Sec. 64.2309, a telecommunications carrier 
provides subscriber list information under reasonable terms and 
conditions only if the carrier does not restrict a directory publisher's 
choice of directory format.



Sec. 64.2329  Format.

    (a) A carrier shall provide subscriber list information obtained in 
its capacity as a provider of telephone exchange service to a requesting 
directory publisher in the format the publisher specifies, if the 
carrier's internal systems can accommodate that format.
    (b) If a carrier's internal systems do not permit the carrier to 
provide subscriber list information in the format the directory 
publisher specifies, the carrier shall:
    (1) Within thirty days of receiving the publisher's request, inform 
the directory publisher that the requested format cannot be accommodated 
and tell the directory publisher which formats can be accommodated; and

[[Page 412]]

    (2) Provide the requested subscriber list information in the format 
the directory publisher chooses from among the available formats.



Sec. 64.2333  Burden of proof.

    (a) In any future proceeding arising under section 222(e) of the 
Communications Act or Sec. 64.2309, the burden of proof will be on the 
carrier to the extent it claims its internal subscriber list information 
systems cannot accommodate the delivery time, delivery schedule, 
unbundling level, or format requested by a directory publisher.
    (b) In any future proceeding arising under section 222(e) of the 
Communications Act or Sec. 64.2309, the burden of proof will be on the 
carrier to the extent it seeks a rate exceeding $0.04 per listing for 
base file subscriber list information or $0.06 per listing for updated 
subscriber list information.



Sec. 64.2337  Directory publishing purposes.

    (a) Except to the extent the carrier and directory publisher 
otherwise agree, a directory publisher shall use subscriber list 
information obtained pursuant to section 222(e) of the Communications 
Act or Sec. 64.2309 only for the purpose of publishing directories.
    (b) A directory publisher uses subscriber list information ``for the 
purpose of publishing directories'' if the publisher includes that 
information in a directory, or uses that information to determine what 
information should be included in a directory, solicit advertisers for a 
directory, or deliver directories.
    (c) A telecommunications carrier may require any person requesting 
subscriber list information pursuant to section 222(e) of the 
Communications Act or Sec. 64.2309 to certify that the publisher will 
use the information only for purposes of publishing a directory.
    (d) A carrier must provide subscriber list information to a 
requesting directory publisher even if the carrier believes that the 
directory publisher will use that information for purposes other than or 
in addition to directory publishing.



Sec. 64.2341  Record keeping.

    (a) A telecommunications carrier must retain, for at least one year 
after its expiration, each written contract that it has executed for the 
provision of subscriber list information for directory publishing 
purposes to itself, an affiliate, or an entity that publishes 
directories on the carrier's behalf.
    (b) A telecommunications carrier must maintain, for at least one 
year after the carrier provides subscriber list information for 
directory publishing purposes to itself, an affiliate, or an entity that 
publishes directories on the carrier's behalf, records of any of its 
rates, terms, and conditions for providing that subscriber list 
information which are not set forth in a written contract.
    (c) Except to the extent specified in paragraph (d), a carrier shall 
make the contracts and records described in paragraphs (a) and (b) 
available, upon request, to the Commission and to any directory 
publisher that requests those contracts and records for the purpose of 
publishing a directory.
    (d) A carrier need not disclose to a directory publisher pursuant to 
paragraph (c) portions of requested contracts that are wholly unrelated 
to the rates, terms, or conditions under which the carrier provides 
subscriber list information to itself, an affiliate, or an entity that 
publishes directories on the carrier's behalf.
    (e) A carrier may subject its disclosure of subscriber list 
information contracts or records to a directory publisher pursuant to 
paragraph (c) to a confidentiality agreement that limits access to and 
use of the information to the purpose of determining the rates, terms, 
and conditions under which the carrier provides subscriber list 
information to itself, an affiliate, or an entity that publishes 
directories on the carrier's behalf.

[28 FR 13239, Dec. 5, 1963, as amended at 69 FR 62816, Oct. 28, 2004]



Sec. 64.2345  Primary advertising classification.

    A primary advertising classification is assigned at the time of the 
establishment of telephone exchange service if

[[Page 413]]

the carrier that provides telephone exchange service assigns the 
classification or if a tariff or State requirement obligates the carrier 
to provide yellow pages listings as part of telephone exchange service 
to businesses.



Subpart Y_Truth-in-Billing Requirements for Common Carriers; Billing for 

                          Unauthorized Charges

    Source: 64 FR 34497, June 25, 1999, unless otherwise noted.



Sec. 64.2400  Purpose and scope.

    (a) The purpose of these rules is to reduce slamming and other 
telecommunications fraud by setting standards for bills for 
telecommunications service. These rules are also intended to aid 
customers in understanding their telecommunications bills, and to 
provide them with the tools they need to make informed choices in the 
market for telecommunications service.
    (b) These rules shall apply to all telecommunications common 
carriers and to all bills containing charges for intrastate or 
interstate services, except as follows:
    (1) Sections 64.2401(a)(2), 64.2401(a)(3), 64.2401(c), and 
64.2401(f) shall not apply to providers of Commercial Mobile Radio 
Service as defined in Sec. 20.9 of this chapter, or to other providers 
of mobile service as defined in Sec. 20.7 of this chapter, unless the 
Commission determines otherwise in a further rulemaking.
    (2) Sections 64.2401(a)(3) and 64.2401(f) shall not apply to bills 
containing charges only for intrastate services.
    (c) Preemptive effect of rules. The requirements contained in this 
subpart are not intended to preempt the adoption or enforcement of 
consistent truth-in-billing requirements by the states.

[64 FR 34497, June 25, 1999; 64 FR 56177, Oct. 18, 1999; 65 FR 36637, 
June 9, 2000, as amended at 65 FR 43258, July 13, 2000; 69 FR 34950, 
June 23, 2004; 70 FR 29983, May 25, 2005; 77 FR 30919, May 24, 2012]



Sec. 64.2401  Truth-in-Billing Requirements.

    (a) Bill organization. Telephone bills shall be clearly organized, 
and must comply with the following requirements:
    (1) The name of the service provider associated with each charge 
must be clearly and conspicuously identified on the telephone bill.
    (2) Where charges for two or more carriers appear on the same 
telephone bill, the charges must be separated by service provider.
    (3) Carriers that place on their telephone bills charges from third 
parties for non-telecommunications services must place those charges in 
a distinct section of the bill separate from all carrier charges. 
Charges in each distinct section of the bill must be separately 
subtotaled. These separate subtotals for carrier and non-carrier charges 
also must be clearly and conspicuously displayed along with the bill 
total on the payment page of a paper bill or equivalent location on an 
electronic bill. For purposes of this subparagraph ``equivalent location 
on an electronic bill'' shall mean any location on an electronic bill 
where the bill total is displayed and any location where the bill total 
is displayed before the bill recipient accesses the complete electronic 
bill, such as in an electronic mail message notifying the bill recipient 
of the bill and an electronic link or notice on a Web site or electronic 
payment portal.
    (4) The telephone bill must clearly and conspicuously identify any 
change in service provider, including identification of charges from any 
new service provider. For purpose of this subparagraph ``new service 
provider'' means a service provider that did not bill the subscriber for 
service during the service provider's last billing cycle. This 
definition shall include only providers that have continuing 
relationships with the subscriber that will result in periodic charges 
on the subscriber's bill, unless the service is subsequently canceled.
    (b) Descriptions of billed charges. Charges contained on telephone 
bills must be accompanied by a brief, clear,

[[Page 414]]

non-misleading, plain language description of the service or services 
rendered. The description must be sufficiently clear in presentation and 
specific enough in content so that customers can accurately assess that 
the services for which they are billed correspond to those that they 
have requested and received, and that the costs assessed for those 
services conform to their understanding of the price charged.
    (c) ``Deniable'' and ``Non-Deniable'' Charges. Where a bill contains 
charges for basic local service, in addition to other charges, the bill 
must distinguish between charges for which non-payment will result in 
disconnection of basic, local service, and charges for which non-payment 
will not result in such disconnection. The carrier must explain this 
distinction to the customer, and must clearly and conspicuously identify 
on the bill those charges for which non-payment will not result in 
disconnection of basic, local service. Carriers may also elect to devise 
other methods of informing consumers on the bill that they may contest 
charges prior to payment.
    (d) Clear and conspicuous disclosure of inquiry contacts. Telephone 
bills must contain clear and conspicuous disclosure of any information 
that the subscriber may need to make inquiries about, or contest, 
charges on the bill. Common carriers must prominently display on each 
bill a toll-free number or numbers by which subscribers may inquire or 
dispute any charges on the bill. A carrier may list a toll-free number 
for a billing agent, clearinghouse, or other third party, provided such 
party possesses sufficient information to answer questions concerning 
the subscriber's account and is fully authorized to resolve the 
consumer's complaints on the carrier's behalf. Where the subscriber does 
not receive a paper copy of his or her telephone bill, but instead 
accesses that bill only by e-mail or internet, the carrier may comply 
with this requirement by providing on the bill an e-mail or web site 
address. Each carrier must make a business address available upon 
request from a consumer.
    (e) Definition of clear and conspicuous. For purposes of this 
section, ``clear and conspicuous'' means notice that would be apparent 
to the reasonable consumer.
    (f) Blocking of third-party charges. (1) Carriers that offer 
subscribers the option to block third-party charges from appearing on 
telephone bills must clearly and conspicuously notify subscribers of 
this option at the point of sale and on each carrier's Web site.
    (2) Carriers that offer subscribers the option to block third-party 
charges from appearing on telephone bills must clearly and conspicuously 
notify subscribers of this option on each telephone bill.


[64 FR 34497, June 25, 1999, as amended at 65 FR 43258, July 13, 2000; 
76 FR 63563, Oct. 13, 2011; 77 FR 30919, May 24, 2012; 77 FR 71354, Nov. 
30, 2012]



     Subpart Z_Prohibition on Exclusive Telecommunications Contracts

    Source: 66 FR 2334, Jan. 11, 2001, unless otherwise noted.



Sec. 64.2500  Prohibited agreements.

    (a) No common carrier shall enter into any contract, written or 
oral, that would in any way restrict the right of any commercial 
multiunit premises owner, or any agent or representative thereof, to 
permit any other common carrier to access and serve commercial tenants 
on that premises.
    (b) No common carrier shall enter into or enforce any contract, 
written or oral, that would in any way restrict the right of any 
residential multiunit premises owner, or any agent or representative 
thereof, to permit any other common carrier to access and serve 
residential tenants on that premises.

[73 FR 28057, May 15, 2008]



Sec. 64.2501  Scope of limitation.

    For the purposes of this subpart, a multiunit premises is any 
contiguous area under common ownership or control that contains two or 
more distinct units. A commercial multiunit premises is any multiunit 
premises that is predominantly used for non-residential purposes, 
including for-profit, non-

[[Page 415]]

profit, and governmental uses. A residential multiunit premises is any 
multiunit premises that is predominantly used for residential purposes.

73 FR 28057, May 15, 2008]



Sec. 64.2502  Effect of state law or regulation.

    This subpart shall not preempt any state law or state regulation 
that requires a governmental entity to enter into a contract or 
understanding with a common carrier which would restrict such 
governmental entity's right to obtain telecommunications service from 
another common carrier.



             Subpart AA_Universal Emergency Telephone Number

    Source: 67 FR 1649, Jan. 14, 2002, unless otherwise noted.

    Authority: 47 U.S.C. 151, 154(i), 154(j), 157, 160, 210, 202, 208, 
214, 251(e), 301, 303, 308, 309(j), and 310.



Sec. 64.3000  Definitions.

    (a) 911 calls. Any call initiated by an end user by dialing 911 for 
the purpose of accessing an emergency service provider. For wireless 
carriers, all 911 calls include those they are required to transmit 
pursuant to Sec. 20.18 of the Commission's rules.
    (b) Appropriate local emergency authority. An emergency answering 
point that has not been officially designated as a Public Safety 
Answering Point (PSAP), but has the capability of receiving 911 calls 
and either dispatching emergency services personnel or, if necessary, 
relaying the call to another emergency service provider. An appropriate 
local emergency authority may include, but is not limited to, an 
existing local law enforcement authority, such as the police, county 
sheriff, local emergency medical services provider, or fire department.
    (c) Public Safety Answering Point (PSAP). A facility that has been 
designated to receive 911 calls and route them to emergency services 
personnel.
    (d) Statewide default answering point. An emergency answering point 
designated by the State to receive 911 calls for either the entire State 
or those portions of the State not otherwise served by a local PSAP.



Sec. 64.3001  Obligation to transmit 911 calls.

    All telecommunications carriers shall transmit all 911 calls to a 
PSAP, to a designated statewide default answering point, or to an 
appropriate local emergency authority as set forth in Sec. 64.3002.



Sec. 64.3002  Transition to 911 as the universal emergency telephone number.

    As of December 11, 2001, except where 911 is already established as 
the exclusive emergency number to reach a PSAP within a given 
jurisdiction, telecommunications carriers shall comply with the 
following transition periods:
    (a) Where a PSAP has been designated, telecommunications carriers 
shall complete all translation and routing necessary to deliver 911 
calls to a PSAP no later than September 11, 2002.
    (b) Where no PSAP has been designated, telecommunications carriers 
shall complete all translation and routing necessary to deliver 911 
calls to the statewide default answering point no later than September 
11, 2002.
    (c) Where neither a PSAP nor a statewide default answering point has 
been designated, telecommunications carriers shall complete the 
translation and routing necessary to deliver 911 calls to an appropriate 
local emergency authority, within nine months of a request by the State 
or locality.
    (d) Where no PSAP nor statewide default answering point has been 
designated, and no appropriate local emergency authority has been 
selected by an authorized state or local entity, telecommunications 
carriers shall identify an appropriate local emergency authority, based 
on the exercise of reasonable judgment, and complete all translation and 
routing necessary to deliver 911 calls to such appropriate local 
emergency authority no later than September 11, 2002.
    (e) Once a PSAP is designated for an area where none had existed as 
of December 11, 2001, telecommunications carriers shall complete the 
translation and routing necessary to deliver 911

[[Page 416]]

calls to that PSAP within nine months of that designation.



Sec. 64.3003  Obligation for providing a permissive dialing period.

    Upon completion of translation and routing of 911 calls to a PSAP, a 
statewide default answering point, to an appropriate local emergency 
authority, or, where no PSAP nor statewide default answering point has 
been designated and no appropriate local emergency authority has been 
selected by an authorized state or local entity, to an appropriate local 
emergency authority, identified by a telecommunications carrier based on 
the exercise of reasonable judgment, the telecommunications carrier 
shall provide permissive dialing between 911 and any other seven-or ten-
digit emergency number or an abbreviated dialing code other than 911 
that the public has previously used to reach emergency service providers 
until the appropriate State or local jurisdiction determines to phase 
out the use of such seven-or ten-digit number entirely and use 911 
exclusively.



Sec. 64.3004  Obligation for providing an intercept message.

    Upon termination of permissive dialing, as provided under Sec. 
64.3003, telecommunications carriers shall provide a standard intercept 
message announcement that interrupts calls placed to the emergency 
service provider using either a seven-or ten-digit emergency number or 
an abbreviated dialing code other than 911 and informs the caller of the 
dialing code change.



 Subpart BB_Restrictions on Unwanted Mobile Service Commercial Messages

    Authority: 15 U.S.C. 7701-7713, Public Law 108-187, 117 Stat. 2699.



Sec. 64.3100  Restrictions on mobile service commercial messages.

    (a) No person or entity may initiate any mobile service commercial 
message, as those terms are defined in paragraph (c)(7) of this section, 
unless:
    (1) That person or entity has the express prior authorization of the 
addressee;
    (2) That person or entity is forwarding that message to its own 
address;
    (3) That person or entity is forwarding to an address provided that
    (i) The original sender has not provided any payment, consideration 
or other inducement to that person or entity; and
    (ii) That message does not advertise or promote a product, service, 
or Internet website of the person or entity forwarding the message; or
    (4) The address to which that message is sent or directed does not 
include a reference to a domain name that has been posted on the FCC's 
wireless domain names list for a period of at least 30 days before that 
message was initiated, provided that the person or entity does not 
knowingly initiate a mobile service commercial message.
    (b) Any person or entity initiating any mobile service commercial 
message must:
    (1) Cease sending further messages within ten (10) days after 
receiving such a request by a subscriber;
    (2) Include a functioning return electronic mail address or other 
Internet-based mechanism that is clearly and conspicuously displayed for 
the purpose of receiving requests to cease the initiating of mobile 
service commercial messages and/or commercial electronic mail messages, 
and that does not require the subscriber to view or hear further 
commercial content other than institutional identification;
    (3) Provide to a recipient who electronically grants express prior 
authorization to send commercial electronic mail messages with a 
functioning option and clear and conspicuous instructions to reject 
further messages by the same electronic means that was used to obtain 
authorization;
    (4) Ensure that the use of at least one option provided in 
paragraphs (b)(2) and (b)(3) of this section does not result in 
additional charges to the subscriber;
    (5) Identify themselves in the message in a form that will allow a 
subscriber to reasonably determine that the sender is the authorized 
entity; and
    (6) For no less than 30 days after the transmission of any mobile 
service commercial message, remain capable of receiving messages or 
communications

[[Page 417]]

made to the electronic mail address, other Internet-based mechanism or, 
if applicable, other electronic means provided by the sender as 
described in paragraph (b)(2) and (b)(3) of this section.
    (c) Definitions. For the purpose of this subpart:
    (1) Commercial Mobile Radio Service Provider means any provider that 
offers the services defined in 47 CFR Section 20.9.
    (2) Commercial electronic mail message means the term as defined in 
the CAN-SPAM Act, 15 U.S.C 7702 and as further defined under 16 CFR 
316.3. The term is defined as ``an electronic message for which the 
primary purpose is commercial advertisement or promotion of a commercial 
product or service (including content on an Internet Web site operated 
for a commercial purpose).'' The term ``commercial electronic mail 
message'' does not include a transactional or relationship message.
    (3) Domain name means any alphanumeric designation which is 
registered with or assigned by any domain name registrar, domain name 
registry, or other domain name registration authority as part of an 
electronic address on the Internet.
    (4) Electronic mail address means a destination, commonly expressed 
as a string of characters, consisting of a unique user name or mailbox 
and a reference to an Internet domain, whether or not displayed, to 
which an electronic mail message can be sent or delivered.
    (5) Electronic mail message means a message sent to a unique 
electronic mail address.
    (6) Initiate, with respect to a commercial electronic mail message, 
means to originate or transmit such messages or to procure the 
origination or transmission of such message, but shall not include 
actions that constitute routine conveyance of such message. For purposes 
of this paragraph, more than one person may be considered to have 
initiated a message. ``Routine conveyance'' means the transmission, 
routing, relaying, handling, or storing, through an automatic technical 
process, or an electronic mail message for which another person has 
identified the recipients or provided the recipient addresses.
    (7) Mobile Service Commercial Message means a commercial electronic 
mail message that is transmitted directly to a wireless device that is 
utilized by a subscriber of a commercial mobile service (as such term is 
defined in section 332(d) of the Communications Act of 1934 (47 U.S.C. 
332(d)) in connection with such service. A commercial message is 
presumed to be a mobile service commercial message if it is sent or 
directed to any address containing a reference, whether or not 
displayed, to an Internet domain listed on the FCC's wireless domain 
names list. The FCC's wireless domain names list will be available on 
the FCC's website and at the Commission headquarters, 445 12th St., SW., 
Washington, DC 20554.
    (8) Transactional or relationship message means the following and is 
further defined under 16 CFR 316.3 as any electronic mail message the 
primary purpose of which is:
    (i) To facilitate, complete, or confirm a commercial transaction 
that the recipient has previously agreed to enter into with the sender;
    (ii) To provide warranty information, product recall information, or 
safety or security information with respect to a commercial product or 
service used or purchased by the recipient;
    (iii) To provide:
    (A) Notification concerning a change in the terms or features of;
    (B) Notification of a change in the recipient's standing or status 
with respect to; or
    (C) At regular periodic intervals, account balance information or 
other type of account statement with respect to a subscription, 
membership, account, loan, or comparable ongoing commercial relationship 
involving the ongoing purchase or use by the recipient of products or 
services offered by the sender;
    (D) To provide information directly related to an employment 
relationship or related benefit plan in which the recipient is currently 
involved, participating, or enrolled; or
    (E) To deliver goods or services, including product updates or 
upgrades, that the recipient is entitled to receive under the terms of a 
transaction that

[[Page 418]]

the recipient has previously agreed to enter into with the sender.
    (d) Express Prior Authorization may be obtained by oral or written 
means, including electronic methods.
    (1) Written authorization must contain the subscriber's signature, 
including an electronic signature as defined by 15 U.S.C. 7001 (E-Sign 
Act).
    (2) All authorizations must include the electronic mail address to 
which mobile service commercial messages can be sent or directed. If the 
authorization is made through a website, the website must allow the 
subscriber to input the specific electronic mail address to which 
commercial messages may be sent.
    (3) Express Prior Authorization must be obtained by the party 
initiating the mobile service commercial message. In the absence of a 
specific request by the subscriber to the contrary, express prior 
authorization shall apply only to the particular person or entity 
seeking the authorization and not to any affiliated entities unless the 
subscriber expressly agrees to their being included in the express prior 
authorization.
    (4) Express Prior Authorization may be revoked by a request from the 
subscriber, as noted in paragraph (b)(2) and (b)(3) of this section.
    (5) All requests for express prior authorization must include the 
following disclosures:
    (i) That the subscriber is agreeing to receive mobile service 
commercial messages sent to his/her wireless device from a particular 
sender. The disclosure must state clearly the identity of the business, 
individual, or other entity that will be sending the messages;
    (ii) That the subscriber may be charged by his/her wireless service 
provider in connection with receipt of such messages; and
    (iii) That the subscriber may revoke his/her authorization to 
receive MSCMs at any time.
    (6) All notices containing the required disclosures must be clearly 
legible, use sufficiently large type or, if audio, be of sufficiently 
loud volume, and be placed so as to be readily apparent to a wireless 
subscriber. Any such disclosures must be presented separately from any 
other authorizations in the document or oral presentation. If any 
portion of the notice is translated into another language, then all 
portions of the notice must be translated into the same language.
    (e) All CMRS providers must identify all electronic mail domain 
names used to offer subscribers messaging specifically for wireless 
devices in connection with commercial mobile service in the manner and 
time-frame described in a public notice to be issued by the Consumer & 
Governmental Affairs Bureau.
    (f) Each CMRS provider is responsible for the continuing accuracy 
and completeness of information furnished for the FCC's wireless domain 
names list. CMRS providers must:
    (1) File any future updates to listings with the Commission not less 
than 30 days before issuing subscribers any new or modified domain name;
    (2) Remove any domain name that has not been issued to subscribers 
or is no longer in use within 6 months of placing it on the list or last 
date of use; and
    (3) Certify that any domain name placed on the FCC's wireless domain 
names list is used for mobile service messaging.

[69 FR 55779, Sept. 16, 2004, as amended at 70 FR 34666, June 15, 2005]



        Subpart CC_Customer Account Record Exchange Requirements

    Authority: 47 U.S.C. 154, 201, 202, 222, 258 unless otherwise noted.

    Source: 70 FR 32263, June 2, 2005, unless otherwise noted.



Sec. 64.4000  Basis and purpose.

    (a) Basis. The rules in this subpart are issued pursuant to the 
Communications Act of 1934, as amended.
    (b) Purpose. The purpose of these rules is to facilitate the timely 
and accurate establishment, termination, and billing of customer 
telephone service accounts.



Sec. 64.4001  Definitions.

    Terms in this subpart have the following meanings:
    (a) Automatic number identification (ANI). The term automatic number 
identification refers to the delivery of the calling party's billing 
telephone

[[Page 419]]

number by a local exchange carrier to any interconnecting carrier for 
billing or routing purposes.
    (b) Billing name and address (BNA). The term billing name and 
address means the name and address provided to a [LEC] by each of its 
local exchange customers to which the [LEC] directs bills for its 
services.
    (c) Customer. The term customer means the end user to whom a local 
exchange carrier or interexchange carrier is providing local exchange or 
telephone toll service.
    (d) Interexchange carrier (IXC). The term interexchange carrier 
means a telephone company that provides telephone toll service. An 
interexchange carrier does not include commercial mobile radio service 
providers as defined by federal law.
    (e) Local exchange carrier (LEC). The term local exchange carrier 
means any person that is engaged in the provision of telephone exchange 
service or exchange access. Such term does not include a person insofar 
as such person is engaged in the provision of a commercial mobile 
service under Sec. 332(c), except to the extent that the Commission 
finds that such service should be included in the definition of that 
term.
    (f) Preferred interexchange carrier (PIC). The term preferred 
interexchange carrier means the carrier to which a customer chooses to 
be presubscribed for purposes of receiving intraLATA and/or interLATA 
and/or international toll services.



Sec. 64.4002  Notification obligations of LECs.

    To the extent that the information is reasonably available to a LEC, 
the LEC shall provide to an IXC the customer account information 
described in this section consistent with Sec. 64.4004. Nothing in this 
section shall prevent a LEC from providing additional customer account 
information to an IXC to the extent that such additional information is 
necessary for billing purposes or to properly execute a customer's PIC 
order.
    (a) Customer-submitted PIC order. Upon receiving and processing a 
PIC selection submitted by a customer and placing the customer on the 
network of the customer's preferred interexchange carrier at the LEC's 
local switch, the LEC must notify the IXC of this event. The 
notification provided by the LEC to the IXC must contain all of the 
customer account information necessary to allow for proper billing of 
the customer by the IXC including but not limited to:
    (1) The customer's billing telephone number, working telephone 
number, and billing name and address;
    (2) The effective date of the PIC change;
    (3) A statement describing the customer type (i.e., business or 
residential);
    (4) A statement indicating, to the extent appropriate, that the 
customer's telephone service listing is not printed in a directory and 
is not available from directory assistance or is not printed in a 
directory but is available from directory assistance;
    (5) The jurisdictional scope of the PIC installation (i.e., 
intraLATA and/or interLATA and/or international);
    (6) The carrier identification code of the IXC; and
    (7) If relevant, a statement indicating that the customer's account 
is subject to a PIC freeze. The notification also must contain 
information, if relevant and to the extent that it is available, 
reflecting the fact that a customer's PIC selection was the result of:
    (i) A move (an end user customer has moved from one location to 
another within a LEC's service territory);
    (ii) A change in responsible billing party; or
    (iii) The resolution of a PIC dispute.
    (b) Confirmation of IXC-submitted PIC order. When a LEC has placed a 
customer on an IXC's network at the local switch in response to an IXC-
submitted PIC order, the LEC must send a confirmation to the submitting 
IXC. The confirmation provided by the LEC to the IXC must include:
    (1) The customer's billing telephone number, working telephone 
number, and billing name and address;
    (2) The effective date of the PIC change;
    (3) A statement describing the customer type (i.e., business or 
residential);
    (4) A statement indicating, to the extent appropriate, if the 
customer's

[[Page 420]]

telephone service listing is not printed in a directory and is not 
available from directory assistance, or is not printed in a directory 
but is available from directory assistance;
    (5) The jurisdictional scope of the PIC installation (i.e., 
intraLATA and/or interLATA and/or international); and
    (6) The carrier identification code of the IXC. If the PIC order at 
issue originally was submitted by an underlying IXC on behalf of a toll 
reseller, the confirmation provided by the LEC to the IXC must indicate, 
to the extent that this information is known, a statement indicating 
that the customer's PIC is a toll reseller.
    (c) Rejection of IXC-submitted PIC order. When a LEC rejects or 
otherwise does not act upon a PIC order submitted to it by an IXC, the 
LEC must notify the IXC and provide the reason(s) why the PIC order 
could not be processed. The notification provided by the LEC to the IXC 
must state that it has rejected the IXC-submitted PIC order and specify 
the reason(s) for the rejection (e.g., due to a lack of information, 
incorrect information, or a PIC freeze on the customer's account). The 
notification must contain the identical data elements that were provided 
to the LEC in the original IXC-submitted PIC order (i.e., mirror image 
of the original order), unless otherwise specified by this paragraph. If 
a LEC rejects an IXC-submitted PIC order for a multi-line account (i.e., 
the customer has selected the IXC as his PIC for two or more lines or 
terminals associated with his billing telephone number), the 
notification provided by the LEC rejecting that order must explain the 
effect of the rejection with respect to each line (working telephone 
number or terminal) associated with the customer's billing telephone 
number. A LEC is not required to generate a line-specific or terminal-
specific response, however, and may communicate the rejection at the 
billing telephone level, when the LEC is unable to process an entire 
order, including all working telephone numbers and terminals associated 
with a particular billing telephone number. In addition, the 
notification must indicate the jurisdictional scope of the PIC order 
rejection (i.e., intraLATA and/or interLATA and/or international). If a 
LEC rejects a PIC order because:
    (1) The customer's telephone number has been ported to another LEC; 
or
    (2) The customer has otherwise changed local service providers, the 
LEC must include in its notification, to the extent that it is 
available, the identity of the customer's new LEC.
    (d) Customer contacts LEC or new IXC to change PIC(s) or customer 
contacts LEC or current IXC to change PIC to No-PIC. When a LEC has 
removed at its local switch a presubscribed customer from an IXC's 
network in response to a customer order, upon receipt of a properly 
verified PIC order submitted by another IXC, or in response to a 
notification from the customer's current IXC relating to the customer's 
request to change his or her PIC to No-PIC, the LEC must notify the 
customer's former IXC of this event. The LEC must provide to the IXC the 
customer account information that is necessary to allow for proper final 
billing of the customer by the IXC including but not limited to:
    (1) The customer's billing telephone number, working telephone 
number, and billing name and address;
    (2) The effective date of the PIC change;
    (3) A description of the customer type (i.e., business or 
residential);
    (4) The jurisdictional scope of the lines or terminals affected 
(i.e., intraLATA and/or interLATA and/or international); and
    (5) The carrier identification code of the IXC. If a customer 
changes PICs but retains the same LEC, the LEC is responsible for 
notifying both the old PIC and new PIC of the PIC change. The 
notification also must contain information, if relevant and to the 
extent that it is available, reflecting the fact that a customer's PIC 
removal was the result of:
    (i) The customer moving from one location to another within the 
LEC's service territory, but where there is no change in local service 
provider;
    (ii) A change of responsible party on an account; or
    (iii) A disputed PIC selection.
    (e) Particular changes to customer's local service account. When, 
according

[[Page 421]]

to a LEC's records, certain account or line information changes occur on 
a presubscribed customer's account, the LEC must communicate this 
information to the customer's PIC. For purposes of this paragraph, the 
LEC must provide to the appropriate IXC account change information that 
is necessary for the IXC to issue timely and accurate bills to its 
customers including but not limited to:
    (1) The customer's billing telephone number, working telephone 
number, and billing name and address;
    (2) The customer code assigned to that customer by the LEC;
    (3) The type of customer account (i.e., business or residential);
    (4) The status of the customer's telephone service listing, to the 
extent appropriate, as not printed in a directory and not available from 
directory assistance, or not printed in a directory but available from 
directory assistance; and
    (5) The jurisdictional scope of the PIC installation (i.e., 
intraLATA and/or interLATA and/or international);
    (6) The effective date of any change to a customer's local service 
account; and
    (7) The carrier identification code of the IXC. If there are changes 
to the customer's billing or working telephone number, customer code, or 
customer type, the LEC must supply both the old and new information for 
each of these categories.
    (f) Local service disconnection. Upon receipt of an end user 
customer's request to terminate his entire local service account or 
disconnect one or more lines (but not all lines) of a multi-line 
account, the LEC must notify the PIC(s) for the billing telephone number 
or working telephone number on the account of the account termination or 
lines disconnected. In conjunction with this notification requirement, 
the LEC must provide to a customer's PIC(s) all account termination or 
single/multi-line disconnection change information necessary for the 
PIC(s) to maintain accurate billing and PIC records, including but not 
limited to:
    (1) The effective date of the termination/disconnection; and
    (2) The customer's working and billing telephone numbers and billing 
name and address;
    (3) The type of customer account (i.e., business or residential);
    (4) The jurisdictional scope of the PIC installation (i.e., 
intraLATA and/or interLATA and/or international); and
    (5) The carrier identification code of the IXC.
    (g) Change of local service provider. When a customer changes LECs, 
the customer's former LEC must notify the customer's PIC(s) of the 
customer's change in LEC and, if known, the identity of the customer's 
new LEC. If the customer also makes a PIC change, the customer's former 
LEC must also notify the customer's former PIC(s) of the change. When a 
customer only changes LECs, the new LEC must notify the customer's 
current PIC(s) that the customer's PIC selection has not changed. If the 
customer also makes a PIC change, the new LEC must notify the customer's 
new PIC of the customer's PIC selection. If the customer's former LEC is 
unable to identify the customer's new LEC, the former LEC must notify 
the customer's PIC(s) of a local service disconnection as described in 
paragraph (f).
    (1) The required notifications also must contain information, if 
relevant and to the extent that it is available, reflecting the fact 
that an account change was the result of:
    (i) The customer porting his number to a new LEC;
    (ii) A local resale arrangement (customer has transferred to local 
reseller); or
    (iii) The discontinuation of a local resale arrangement;
    (2) The notification provided by the LEC to the IXC must include:
    (i) The customer's billing telephone number, working telephone 
number, and, billing name and address;
    (ii) The effective date of the change of local service providers or 
PIC change;
    (iii) A description of the customer type (i.e., business or 
residential);
    (iv) The jurisdictional scope of the lines or terminals affected 
(i.e., intraLATA and/or interLATA and/or international); and

[[Page 422]]

    (v) The carrier identification code of the IXC.
    (h) IXC requests for customer BNA information. Upon the request of 
an IXC, a LEC must provide the billing name and address information 
necessary to facilitate a customer's receipt of a timely, accurate bill 
for services rendered and/or to prevent fraud, regardless of the type of 
service the end user receives/has received from the requesting carrier 
(i.e., presubscribed, dial-around, casual). In response to an IXC's BNA 
request for ANI, a LEC must provide the BNA for the submitted ANI along 
with:
    (1) The working telephone number for the ANI;
    (2) The date of the BNA response;
    (3) The carrier identification code of the submitting IXC; and
    (4) A statement indicating, to the extent appropriate, if the 
customer's telephone service listing is not printed in a directory and 
is not available from directory assistance, or is not printed in a 
directory but is available from directory assistance. A LEC that is 
unable to provide the BNA requested must provide the submitting carrier 
with the identical information contained in the original BNA request 
(i.e., the mirror image of the original request), along with the 
specific reason(s) why the requested information could not be provided. 
If the BNA is not available because the customer has changed local 
service providers or ported his telephone number, the LEC must include 
the identity of the new provider when this information is available.

[71 FR 74821, Dec. 13, 2006]



Sec. 64.4003  Notification obligations of IXCs.

    To the extent that the information is reasonably available to an 
IXC, the IXC shall provide to a LEC the customer account information 
described in this section consistent with Sec. 64.4004. Nothing in this 
section shall prevent an IXC from providing additional customer account 
information to a LEC to the extent that such additional information is 
necessary for billing purposes or to properly execute a customer's PIC 
Order.
    (a) IXC-submitted PIC Order. When a customer contacts an IXC to 
establish interexchange service on a presubscribed basis, the IXC 
selected must submit the customer's properly verified PIC Order (see 47 
CFR 64.1120(a)) to the customer's LEC, instructing the LEC to install or 
change the PIC for the customer's line(s) to that IXC. The notification 
provided by the IXC to the LEC must contain all of the information 
necessary to properly execute the Order including but not limited to:
    (1) The customer's billing telephone number or working telephone 
number associated with the lines or terminals that are to be 
presubscribed to the IXC;
    (2) The date of the IXC-submitted PIC Order;
    (3) The jurisdictional scope of the PIC Order (i.e, intraLATA and/or 
interLATA and/or international); and
    (4) The carrier identification code of the submitting IXC.
    (b) Customer contacts IXC to cancel PIC and to select no-PIC status. 
When an end user customer contacts an IXC to discontinue interexchange 
service on a presubscribed basis, the IXC must confirm that it is the 
customer's desire to have no PIC and, if that is the case, the IXC must 
notify the customer's LEC. The IXC also is encouraged to instruct the 
customer to notify his LEC. An IXC may satisfy this requirement by 
establishing a three-way call with the customer and the customer's LEC 
to confirm that it is the customer's desire to have no PIC and, where 
appropriate, to provide the customer the opportunity to withdraw any PIC 
freeze that may be in place. The notification provided by the IXC to the 
LEC must contain the customer account information necessary to properly 
execute the cancellation Order including but not limited to:
    (1) The customer's billing telephone number or working telephone 
number associated with the lines or terminals that are affected;
    (2) The date of the IXC-submitted PIC removal Order;
    (3) The jurisdictional scope of the PIC removal Order (i.e., 
intraLATA and/or interLATA and/or international); and

[[Page 423]]

    (4) The carrier identification code of the submitting IXC.

[70 FR 32263, June 2, 2005; 70 FR 54301, Sept. 14, 2005]



Sec. 64.4004  Timeliness of required notifications.

    Carriers subject to the requirements of this section shall provide 
the required notifications promptly and without unreasonable delay.



Sec. 64.4005  Unreasonable terms or conditions on the provision of customer 

account information.

    To the extent that a carrier incurs costs associated with providing 
the notifications required by this section, the carrier may recover such 
costs, consistent with federal and state laws, through the filing of 
tariffs, via negotiated agreements, or by other appropriate mechanisms. 
Any cost recovery method must be reasonable and must recover only costs 
that are associated with providing the particular information. The 
imposition of unreasonable terms or conditions on the provision of 
information required by this section may be considered an unreasonable 
carrier practice under section 201(b) of the Communications Act of 1934, 
as amended, and may subject the carrier to appropriate enforcement 
action.



Sec. 64.4006  Limitations on use of customer account information.

    A carrier that receives customer account information under this 
section shall use such information to ensure timely and accurate billing 
of a customer's account and to ensure timely and accurate execution of a 
customer's preferred interexchange carrier instructions. Such 
information shall not be used for marketing purposes without the express 
consent of the customer.



                Subpart DD_Prepaid Calling Card Providers

    Source: 71 FR 43673, Aug. 2, 2006, unless otherwise noted.



Sec. 64.5000  Definitions.

    (a) Prepaid calling card. The term ``prepaid calling card'' means a 
card or similar device that allows users to pay in advance for a 
specified amount of calling, without regard to additional features, 
functions, or capabilities available in conjunction with the calling 
service.
    (b) Prepaid calling card provider. The term ``prepaid calling card 
provider'' means any entity that provides telecommunications service to 
consumers through the use of a prepaid calling card.



Sec. 64.5001  Reporting and certification requirements.

    (a) All prepaid calling card providers must report prepaid calling 
card percentage of interstate use (PIU) factors, and call volumes from 
which these factors were calculated, based on not less than a one-day 
representative sample, to those carriers from which they purchase 
transport services. Such reports must be provided no later than the 45th 
day of each calendar quarter for the previous quarter.
    (b) If a prepaid calling card provider fails to provide the 
appropriate PIU information to a transport provider in the time allowed, 
the transport provider may apply a 50 percent default PIU factor to the 
prepaid calling card provider's traffic.
    (c) On a quarterly basis, every prepaid calling card provider must 
submit to the Commission a certification, signed by an officer of the 
company under penalty of perjury, providing the following information 
with respect to the prior quarter:
    (1) The percentage of intrastate, interstate, and international 
calling card minutes for that reporting period;
    (2) The percentage of total prepaid calling card service revenue 
(excluding revenue from prepaid calling cards sold by, to, or pursuant 
to contract with the Department of Defense (DoD) or a DoD entity) 
attributable to interstate and international calls for that reporting 
period;
    (3) A statement that it is making the required Universal Service 
Fund contribution based on the reported information; and
    (4) A statement that it has complied with the reporting requirements 
described in paragraph (a) of this section.

[[Page 424]]



        Subpart EE_TRS Customer Proprietary Network Information.

    Source: 78 FR 40613, July 5, 2013, unless otherwise noted.



Sec. 64.5101  Basis and purpose.

    (a) Basis. The rules in this subpart are issued pursuant to the 
Communications Act of 1934, as amended.
    (b) Purpose. The purpose of the rules in this subpart is to 
implement customer proprietary network information protections for users 
of telecommunications relay services pursuant to sections 4, 222, and 
225 of the Communications Act of 1934, as amended, 47 U.S.C. 4, 222, and 
225.



Sec. 64.5103  Definitions.

    (a) Address of record. An ``address of record,'' whether postal or 
electronic, is an address that the TRS provider has associated with the 
customer for at least 30 days.
    (b) Affiliate. The term ``affiliate'' shall have the same meaning 
given such term in section 3 of the Communications Act of 1934, as 
amended, 47 U.S.C. 153.
    (c) Call data information. The term ``call data information'' means 
any information that pertains to the handling of specific TRS calls, 
including the call record identification sequence, the communications 
assistant identification number, the session start and end times, the 
conversation start and end times, incoming and outbound telephone 
numbers, incoming and outbound internet protocol (IP) addresses, total 
conversation minutes, total session minutes, and the electronic serial 
number of the consumer device.
    (d) Communications assistant (CA). The term ``communications 
assistant'' or ``CA'' shall have the same meaning given to the term in 
Sec. 64.601(a) of this part.
    (e) Customer. The term ``customer'' means a person:
    (1) To whom the TRS provider provides TRS or point-to-point service, 
or
    (2) Who is registered with the TRS provider as a default provider.
    (f) Customer proprietary network information (CPNI). The term 
``customer proprietary network information'' or ``CPNI'' means 
information that relates to the quantity, technical configuration, type, 
destination, location, and amount of use of a telecommunications service 
used by any customer of a TRS provider; and information regarding a 
customer's use of TRS contained in the documentation submitted by a TRS 
provider to the TRS Fund administrator in connection with a request for 
compensation for the provision of TRS.
    (g) Customer premises equipment (CPE). The term ``customer premises 
equipment'' or ``CPE'' shall have the same meaning given to such term in 
section 3 of the Communications Act of 1934, as amended, 47 U.S.C. 153.
    (h) Default provider. The term ``default provider'' shall have the 
same meaning given such term in Sec. 64.601(a) of this part.
    (i) Internet-based TRS (iTRS). The term ``Internet-based TRS'' or 
``iTRS shall have the same meaning given to the term in Sec. 64.601(a) 
of this part.
    (j) iTRS access technology. The term ``iTRS access technology'' 
shall have the same meaning given to the term in Sec. 64.601(a) of this 
part.
    (k) Opt-in approval. The term ``opt-in approval'' shall have the 
same meaning given such term in Sec. 64.5107(b)(1) of this subpart.
    (l) Opt-out approval. The term ``opt-out approval'' shall have the 
same meaning given such term in Sec. 64.5107(b)(2) of this subpart.
    (m) Point-to-point service. The term ``point-to-point service'' 
means a service that enables a VRS customer to place and receive non-
relay calls without the assistance of a CA over the VRS provider 
facilities using VRS access technology. Such calls are made by means of 
ten-digit NANP numbers assigned to customers by VRS providers. The term 
``point-to-point call'' shall refer to a call placed via a point-to-
point service.
    (n) Readily available biographical information. The term ``readily 
available biographical information'' means information drawn from the 
customer's life history and includes such things as the customer's 
social security number, or the last four digits of that number; mother's 
maiden name; home address; or date of birth.

[[Page 425]]

    (o) Sign language. The term ``sign language'' shall have the same 
meaning given to the term in Sec. 64.601(a) of this part.
    (p) Telecommunications relay services (TRS). The term 
``telecommunications relay services'' or ``TRS'' shall have the same 
meaning given to such term in Sec. 64.601(a) of this part.
    (q) Telephone number of record. The term ``telephone number of 
record'' means the telephone number associated with the provision of 
TRS, which may or may not be the telephone number supplied as part of a 
customer's ``contact information.''
    (r) TRS Fund. The term ``TRS Fund'' shall have the same meaning 
given to the term in Sec. 64.604(c)(5)(iii) of this part.
    (s) TRS provider. The term ``TRS provider'' means an entity that 
provides TRS and shall include an entity that provides point-to-point 
service.
    (t) TRS-related services. The term ``TRS-related services'' means, 
in the case of traditional TRS, services related to the provision or 
maintenance of customer premises equipment, and in the case of iTRS, 
services related to the provision or maintenance of iTRS access 
technology, including features and functions typically provided by TRS 
providers in association with iTRS access technology.
    (u) Valid photo ID. The term ``valid photo ID'' means a government-
issued means of personal identification with a photograph such as a 
driver's license, passport, or comparable ID that has not expired.
    (v) Video relay service. The term ``video relay service'' or VRS 
shall have the same meaning given to the term in Sec. 64.601(a) of this 
part.
    (w) VRS access technology. The term ``VRS access technology'' shall 
have the same meaning given to the term in Sec. 64.601(a) of this part.

    Effective Date Note: At 78 FR 40613, July 5, 2013, Sec. 64.5104 was 
added. Paragraphs (c)(4) and (c)(5) contain information collection and 
recordkeeping requirements and will not become effective until approval 
has been given by the Office of Management and Budget.



Sec. 64.5105  Use of customer proprietary network information without customer 

approval.

    (a) A TRS provider may use, disclose, or permit access to CPNI for 
the purpose of providing or lawfully marketing service offerings among 
the categories of service (i.e., type of TRS) for which the TRS provider 
is currently the default provider for that customer, without customer 
approval.
    (1) If a TRS provider provides different categories of TRS, and the 
TRS provider is currently the default provider for that customer for 
more than one category of TRS offered by the TRS provider, the TRS 
provider may share CPNI among the TRS provider's affiliated entities 
that provide a TRS offering to the customer.
    (2) If a TRS provider provides different categories of TRS, but the 
TRS provider is currently not the default provider for that customer for 
more than one offering by the TRS provider, the TRS provider shall not 
share CPNI with its affiliates, except as provided in Sec. 64.5107(b) 
of this subpart.
    (b) A TRS provider shall not use, disclose, or permit access to CPNI 
as described in this paragraph (b).
    (1) A TRS provider shall not use, disclose, or permit access to CPNI 
to market to a customer TRS offerings that are within a category of TRS 
for which the TRS provider is not currently the default provider for 
that customer, unless that TRS provider has customer approval to do so.
    (2) A TRS provider shall not identify or track CPNI of customers 
that call competing TRS providers and, notwithstanding any other 
provision of this subpart, a TRS provider shall not use, disclose or 
permit access to CPNI related to a customer call to a competing TRS 
provider.
    (c) A TRS provider may use, disclose, or permit access to CPNI, 
without customer approval, as described in this paragraph (c).
    (1) A TRS provider may use, disclose or permit access to CPNI 
derived from its provision of TRS without customer approval, for the 
provision of CPE or iTRS access technology, and call answering, voice or 
video mail or messaging, voice or video storage and retrieval services.

[[Page 426]]

    (2) A TRS provider may use, disclose, or permit access to CPNI, 
without customer approval, in its provision of inside wiring 
installation, maintenance, and repair services.
    (3) A TRS provider may use CPNI, without customer approval, to 
market services formerly known as adjunct-to-basic services, such as, 
but not limited to, speed dialing, call waiting, caller I.D., and call 
forwarding, only to those customers that are currently registered with 
that TRS provider as their default provider.
    (4) A TRS provider shall use, disclose, or permit access to CPNI to 
the extent necessary to:
    (i) Accept and handle 911/E911 calls;
    (ii) Access, either directly or via a third party, a commercially 
available database that will allow the TRS provider to determine an 
appropriate Public Safety Answering Point, designated statewide default 
answering point, or appropriate local emergency authority that 
corresponds to the caller's location;
    (iii) Relay the 911/E911 call to that entity; and
    (iv) Facilitate the dispatch and response of emergency service or 
law enforcement personnel to the caller's location, in the event that 
the 911/E911 call is disconnected or the caller becomes incapacitated.
    (5) A TRS provider shall use, disclose, or permit access to CPNI 
upon request by the administrator of the TRS Fund, as that term is 
defined in Sec. 64.604(c)(5)(iii) of this part, or by the Commission 
for the purpose of administration and oversight of the TRS Fund, 
including the investigation and prevention of fraud, abuse, and misuse 
of TRS and seeking repayment to the TRS Fund for non-compensable 
minutes.
    (6) A TRS provider may use, disclose, or permit access to CPNI to 
protect the rights or property of the TRS provider, or to protect users 
of those services, other TRS providers, and the TRS Fund from 
fraudulent, abusive, or unlawful use of such services.

    Effective Date Note: At 78 FR 40613, July 5, 2013, Sec. 64.5105 was 
added, however paragraphs (c)(4) and (c)(5) contain information 
collection and recordkeeping requirements and will not become effective 
until approval has been given by the Office of Managmenet and Budget.



Sec. 64.5107  Approval required for use of customer proprietary network 

information.

    (a) A TRS provider may obtain approval through written, oral, 
electronic, or sign language methods.
    (1) A TRS provider relying on oral or sign language approval shall 
bear the burden of demonstrating that such approval has been given in 
compliance with the Commission's rules in this part.
    (2) Approval or disapproval to use, disclose, or permit access to a 
customer's CPNI obtained by a TRS provider must remain in effect until 
the customer revokes or limits such approval or disapproval. A TRS 
provider shall accept any such customer revocation, whether in written, 
oral, electronic, or sign language methods.
    (3) A TRS provider must maintain records of approval, whether oral, 
written, electronic, or sign language, during the time period that the 
approval or disapproval is in effect and for at least one year 
thereafter.
    (b) Use of opt-in and opt-out approval processes. (1) Opt-in 
approval requires that the TRS provider obtain from the customer 
affirmative, express consent allowing the requested CPNI usage, 
disclosure, or access after the customer is provided appropriate 
notification of the TRS provider's request consistent with the 
requirements set forth in this subpart.
    (2) With opt-out approval, a customer is deemed to have consented to 
the use, disclosure, or access to the customer's CPNI if the customer 
has failed to object thereto within the waiting period described in 
Sec. 64.5108(d)(1) of this subpart after the TRS provider has provided 
to the customer appropriate notification of the TRS provider's request 
for consent consistent with the rules in this subpart.
    (3) A TRS provider may only use, disclose, or permit access to the 
customer's individually identifiable CPNI with the customer's opt-in 
approval, except as follows:
    (i) Where a TRS provider is permitted to use, disclose, or permit 
access to CPNI without customer approval under Sec. 64.5105 of this 
subpart.

[[Page 427]]

    (ii) Where a TRS provider is permitted to use, disclose, or permit 
access to CPNI by making use of customer opt-in or opt-out approval 
under paragraph (?)(4) of this section.
    (4) A TRS provider may make use of customer opt-in or opt-out 
approval to take the following actions with respect to CPNI:
    (i) Use its customer's individually identifiable CPNI for the 
purpose of lawfully marketing TRS-related services to that customer.
    (ii) Disclose its customer's individually identifiable CPNI to its 
agents and its affiliates that provide TRS-related services for the 
purpose of lawfully marketing TRS-related services to that customer. A 
TRS provider may also permit such persons or entities to obtain access 
to such CPNI for such purposes.

    Effective Date Note: At 78 FR 40613, July 5, 2013, Sec. 64.5107 was 
added. This section contain information collection and recordkeeping 
requirements and will not become effective until approval has been given 
by the Office of Management and Budget.



Sec. 64.5108  Notice required for use of customer proprietary network 

information.

    (a) Notification, generally. (1) Prior to any solicitation for 
customer approval to use, disclose, or permit access to CPNI, a TRS 
provider shall provide notification to the customer of the customer's 
right to deny or restrict use of, disclosure of, and access to that 
customer's CPNI.
    (2) A TRS provider shall maintain records of notification, whether 
oral, written, electronic, or sign language, during the time period that 
the approval is in effect and for at least one year thereafter.
    (b) Individual notice. A TRS provider shall provide individual 
notice to customers when soliciting approval to use, disclose, or permit 
access to customers' CPNI.
    (c) Content of notice. Customer notification shall provide 
sufficient information in clear and unambiguous language to enable the 
customer to make an informed decision as to whether to permit a TRS 
provider to use, disclose, or permit access to, the customer's CPNI.
    (1) The notification shall state that the customer has a right to 
deny any TRS provider the right to use, disclose or permit access to the 
customer's CPNI, and the TRS provider has a duty, under federal law, to 
honor the customer's right and to protect the confidentiality of CPNI.
    (2) The notification shall specify the types of information that 
constitute CPNI and the specific entities that will use, receive or have 
access to the CPNI, describe the purposes for which CPNI will be used, 
and inform the customer of his or her right to disapprove those uses, 
and deny or withdraw the customer's consent to use, disclose, or permit 
access to access to CPNI at any time.
    (3) The notification shall advise the customer of the precise steps 
the customer must take in order to grant or deny use, disclosure, or 
access to CPNI, and must clearly state that customer denial of approval 
will not affect the TRS provider's provision of any services to the 
customer. However, TRS providers may provide a brief statement, in clear 
and neutral language, describing consequences directly resulting from 
the lack of access to CPNI.
    (4) TRS providers shall provide the notification in a manner that is 
accessible to the customer, comprehensible, and not misleading.
    (5) If the TRS provider provides written notification to the 
customer, the notice shall be clearly legible, use sufficiently large 
type, and be placed in an area so as to be readily apparent to a 
customer.
    (6) If any portion of a notification is translated into another 
language, then all portions of the notification must be translated into 
that language.
    (7) A TRS provider may state in the notification that the customer's 
approval to use CPNI may enhance the TRS provider's ability to offer 
products and services tailored to the customer's needs. A TRS provider 
also may state in the notification that it may be compelled to disclose 
CPNI to any person upon affirmative written request by the customer.
    (8) The notification shall state that any approval or denial of 
approval for the use of CPNI outside of the service

[[Page 428]]

for which the TRS provider is the default provider for the customer is 
valid until the customer affirmatively revokes or limits such approval 
or denial.
    (9) A TRS provider's solicitation for approval to use, disclose, or 
have access to the customer's CPNI must be proximate to the notification 
of a customer's CPNI rights to non-disclosure.
    (d) Notice requirements specific to opt-out. A TRS provider shall 
provide notification to obtain opt-out approval through electronic or 
written methods, but not by oral or sign language communication (except 
as provided in paragraph (f) of this section). The contents of any such 
notification shall comply with the requirements of paragraph (c) of this 
section.
    (1) TRS providers shall wait a 30-day minimum period of time after 
giving customers notice and an opportunity to opt-out before assuming 
customer approval to use, disclose, or permit access to CPNI. A TRS 
provider may, in its discretion, provide for a longer period. TRS 
providers shall notify customers as to the applicable waiting period for 
a response before approval is assumed.
    (i) In the case of an electronic form of notification, the waiting 
period shall begin to run from the date on which the notification was 
sent; and
    (ii) In the case of notification by mail, the waiting period shall 
begin to run on the third day following the date that the notification 
was mailed.
    (2) TRS providers using the opt-out mechanism shall provide notices 
to their customers every two years.
    (3) TRS providers that use email to provide opt-out notices shall 
comply with the following requirements in addition to the requirements 
generally applicable to notification:
    (i) TRS providers shall obtain express, verifiable, prior approval 
from consumers to send notices via email regarding their service in 
general, or CPNI in particular;
    (ii) TRS providers shall either:
    (A) Allow customers to reply directly to the email containing the 
CPNI notice in order to opt-out; or
    (B) Include within the email containing the CPNI notice a 
conspicuous link to a Web page that provides to the customer a readily 
usable opt-out mechanism;
    (iii) Opt-out email notices that are returned to the TRS provider as 
undeliverable shall be sent to the customer in another form before the 
TRS provider may consider the customer to have received notice;
    (iv) TRS providers that use email to send CPNI notices shall ensure 
that the subject line of the message clearly and accurately identifies 
the subject matter of the email; and
    (v) TRS providers shall make available to every customer a method to 
opt-out that is of no additional cost to the customer and that is 
available 24 hours a day, seven days a week. TRS providers may satisfy 
this requirement through a combination of methods, so long as all 
customers have the ability to opt-out at no cost and are able to 
effectuate that choice whenever they choose.
    (e) Notice requirements specific to opt-in. A TRS provider may 
provide notification to obtain opt-in approval through oral, sign 
language, written, or electronic methods. The contents of any such 
notification shall comply with the requirements of paragraph (c) of this 
section.
    (f) Notice requirements specific to one-time use of CPNI. (1) TRS 
providers may use oral, text, or sign language notice to obtain limited, 
one-time use of CPNI for inbound and outbound customer telephone, TRS, 
or point-to-point contacts for the duration of the call, regardless of 
whether TRS providers use opt-out or opt-in approval based on the nature 
of the contact.
    (2) The contents of any such notification shall comply with the 
requirements of paragraph (c) of this section, except that TRS providers 
may omit any of the following notice provisions if not relevant to the 
limited use for which the TRS provider seeks CPNI:
    (i) TRS providers need not advise customers that if they have opted-
out previously, no action is needed to maintain the opt-out election;
    (ii) TRS providers need not advise customers that the TRS provider 
may share CPNI with the TRS provider's affiliates or third parties and 
need not name those entities, if the limited CPNI usage will not result 
in use by, or

[[Page 429]]

disclosure to, an affiliate or third party;
    (iii) TRS providers need not disclose the means by which a customer 
can deny or withdraw future access to CPNI, so long as the TRS provider 
explains to customers that the scope of the approval the TRS provider 
seeks is limited to one-time use; and
    (iv) TRS providers may omit disclosure of the precise steps a 
customer must take in order to grant or deny access to CPNI, as long as 
the TRS provider clearly communicates that the customer can deny access 
to his or her CPNI for the call.

    Effective Date Note: At 78 FR 40613, July 5, 2013, Sec. 64.5108 was 
added. This section contain information collection and recordkeeping 
requirements and will not become effective until approval has been given 
by the Office of Management and Budget.



Sec. 64.5109  Safeguards required for use of customer proprietary network 

information.

    (a) TRS providers shall implement a system by which the status of a 
customer's CPNI approval can be clearly established prior to the use of 
CPNI. Except as provided for in Sec. Sec. 64.5105 and 64.5108(f) of 
this subpart, TRS providers shall provide access to and shall require 
all personnel, including any agents, contractors, and subcontractors, 
who have contact with customers to verify the status of a customer's 
CPNI approval before using, disclosing, or permitting access to the 
customer's CPNI.
    (b) TRS providers shall train their personnel, including any agents, 
contractors, and subcontractors, as to when they are and are not 
authorized to use CPNI, including procedures for verification of the 
status of a customer's CPNI approval. TRS providers shall have an 
express disciplinary process in place, including in the case of agents, 
contractors, and subcontractors, a right to cancel the applicable 
contract(s) or otherwise take disciplinary action.
    (c) TRS providers shall maintain a record, electronically or in some 
other manner, of their own and their affiliates' sales and marketing 
campaigns that use their customers' CPNI. All TRS providers shall 
maintain a record of all instances where CPNI was disclosed or provided 
to third parties, or where third parties were allowed access to CPNI. 
The record shall include a description of each campaign, the specific 
CPNI that was used in the campaign, including the customer's name, and 
what products and services were offered as a part of the campaign. TRS 
providers shall retain the record for a minimum of three years.
    (d) TRS providers shall establish a supervisory review process 
regarding TRS provider compliance with the rules in this subpart for 
outbound marketing situations and maintain records of TRS provider 
compliance for a minimum period of three years. Sales personnel must 
obtain supervisory approval of any proposed outbound marketing request 
for customer approval.
    (e) A TRS provider shall have an officer, as an agent of the TRS 
provider, sign and file with the Commission a compliance certification 
on an annual basis. The officer shall state in the certification that he 
or she has personal knowledge that the company has established operating 
procedures that are adequate to ensure compliance with the rules in this 
subpart. The TRS provider must provide a statement accompanying the 
certification explaining how its operating procedures ensure that it is 
or is not in compliance with the rules in this subpart. In addition, the 
TRS provider must include an explanation of any actions taken against 
data brokers, a summary of all customer complaints received in the past 
year concerning the unauthorized release of CPNI, and a report detailing 
all instances where the TRS provider, or its agents, contractors, or 
subcontractors, used, disclosed, or permitted access to CPNI without 
complying with the procedures specified in this subpart. In the case of 
iTRS providers, this filing shall be included in the annual report filed 
with the Commission pursuant to Sec. 64.606(g) of this part for data 
pertaining to the previous year. In the case of all other TRS providers, 
this filing shall be made annually with the Disability Rights Office of 
the Consumer and Governmental Affairs Bureau on or before March 1 in CG 
Docket No. 03-123 for data pertaining to the previous calendar year.

[[Page 430]]

    (f) TRS providers shall provide written notice within five business 
days to the Disability Rights Office of the Consumer and Governmental 
Affairs Bureau of the Commission of any instance where the opt-out 
mechanisms do not work properly, to such a degree that consumers' 
inability to opt-out is more than an anomaly.
    (1) The notice shall be in the form of a letter, and shall include 
the TRS provider's name, a description of the opt-out mechanism(s) used, 
the problem(s) experienced, the remedy proposed and when it will be/was 
implemented, whether the relevant state commission(s) has been notified, 
if applicable, and whether the state commission(s) has taken any action, 
a copy of the notice provided to customers, and contact information.
    (2) Such notice shall be submitted even if the TRS provider offers 
other methods by which consumers may opt-out.

    Effective Date Note: At 78 FR 40613, July 5, 2013, Sec. 64.5109 was 
added. This section contain information collection and recordkeeping 
requirements and will not become effective until approval has been given 
by the Office of Management and Budget.



Sec. 64.5110  Safeguards on the disclosure of customer proprietary network 

information.

    (a) Safeguarding CPNI. TRS providers shall take all reasonable 
measures to discover and protect against attempts to gain unauthorized 
access to CPNI. TRS providers shall authenticate a customer prior to 
disclosing CPNI based on a customer-initiated telephone contact, TRS 
call, point-to-point call, online account access, or an in-store visit.
    (b) Telephone, TRS, and point-to-point access to CPNI. A TRS 
provider shall authenticate a customer without the use of readily 
available biographical information, or account information, prior to 
allowing the customer telephonic, TRS, or point-to-point access to CPNI 
related to his or her TRS account. Alternatively, the customer may 
obtain telephonic, TRS, or point-to-point access to CPNI related to his 
or her TRS account through a password, as described in paragraph (e) of 
this section.
    (c) Online access to CPNI. A TRS provider shall authenticate a 
customer without the use of readily available biographical information, 
or account information, prior to allowing the customer online access to 
CPNI related to his or her TRS account. Once authenticated, the customer 
may only obtain online access to CPNI related to his or her TRS account 
through a password, as described in paragraph (e) of this section.
    (d) In-store access to CPNI. A TRS provider may disclose CPNI to a 
customer who, at a TRS provider's retail location, first presents to the 
TRS provider or its agent a valid photo ID matching the customer's 
account information.
    (e) Establishment of a password and back-up authentication methods 
for lost or forgotten passwords. To establish a password, a TRS provider 
shall authenticate the customer without the use of readily available 
biographical information, or account information. TRS providers may 
create a back-up customer authentication method in the event of a lost 
or forgotten password, but such back-up customer authentication method 
may not prompt the customer for readily available biographical 
information, or account information. If a customer cannot provide the 
correct password or the correct response for the back-up customer 
authentication method, the customer shall establish a new password as 
described in this paragraph.
    (f) Notification of account changes. TRS providers shall notify 
customers immediately whenever a password, customer response to a back-
up means of authentication for lost or forgotten passwords, online 
account, or address of record is created or changed. This notification 
is not required when the customer initiates service, including the 
selection of a password at service initiation. This notification may be 
through a TRS provider-originated voicemail, text message, or video mail 
to the telephone number of record, by mail to the physical address of 
record, or by email to the email address of record, and shall not reveal 
the changed information or be sent to the new account information.

[[Page 431]]


    Effective Date Note: At 78 FR 40613, July 5, 2013, Sec. 64.5110 was 
added. This section contain information collection and recordkeeping 
requirements and will not become effective until approval has been given 
by the Office of Management and Budget.



Sec. 64.5111  Notification of customer proprietary network information 

security breaches.

    (a) A TRS provider shall notify law enforcement of a breach of its 
customers' CPNI as provided in this section. The TRS provider shall not 
notify its customers or disclose the breach publicly, whether 
voluntarily or under state or local law or these rules, until it has 
completed the process of notifying law enforcement pursuant to paragraph 
(b) of this section. The TRS provider shall file a copy of the 
notification with the Disability Rights Office of the Consumer and 
Governmental Affairs Bureau at the same time as when the TRS provider 
notifies the customers.
    (b) As soon as practicable, and in no event later than seven (7) 
business days, after reasonable determination of the breach, the TRS 
provider shall electronically notify the United States Secret Service 
(USSS) and the Federal Bureau of Investigation (FBI) through a central 
reporting facility. The Commission will maintain a link to the reporting 
facility at http://www.fcc.gov/eb/cpni.
    (1) Notwithstanding any state law to the contrary, the TRS provider 
shall not notify customers or disclose the breach to the public until 7 
full business days have passed after notification to the USSS and the 
FBI except as provided in paragraphs (b)(2) and (3) of this section.
    (2) If the TRS provider believes that there is an extraordinarily 
urgent need to notify any class of affected customers sooner than 
otherwise allowed under paragraph (b)(1) of this section, in order to 
avoid immediate and irreparable harm, it shall so indicate in its 
notification and may proceed to immediately notify its affected 
customers only after consultation with the relevant investigating 
agency. The TRS provider shall cooperate with the relevant investigating 
agency's request to minimize any adverse effects of such customer 
notification.
    (3) If the relevant investigating agency determines that public 
disclosure or notice to customers would impede or compromise an ongoing 
or potential criminal investigation or national security, such agency 
may direct the TRS provider not to so disclose or notify for an initial 
period of up to 30 days. Such period may be extended by the agency as 
reasonably necessary in the judgment of the agency. If such direction is 
given, the agency shall notify the TRS provider when it appears that 
public disclosure or notice to affected customers will no longer impede 
or compromise a criminal investigation or national security. The agency 
shall provide in writing its initial direction to the TRS provider, any 
subsequent extension, and any notification that notice will no longer 
impede or compromise a criminal investigation or national security and 
such writings shall be contemporaneously logged on the same reporting 
facility that contains records of notifications filed by TRS providers.
    (c) Customer notification. After a TRS provider has completed the 
process of notifying law enforcement pursuant to paragraph (b) of this 
section, and consistent with the waiting requirements specified in 
paragraph (b) of this section, the TRS provider shall notify its 
customers of a breach of those customers' CPNI.
    (d) Recordkeeping. All TRS providers shall maintain a record, 
electronically or in some other manner, of any breaches discovered, 
notifications made to the USSS and the FBI pursuant to paragraph (b) of 
this section, and notifications made to customers. The record must 
include, if available, dates of discovery and notification, a detailed 
description of the CPNI that was the subject of the breach, and the 
circumstances of the breach. TRS providers shall retain the record for a 
minimum of 2 years.
    (e) Definition. As used in this section, a ``breach'' has occurred 
when a person, without authorization or exceeding authorization, has 
intentionally gained access to, used, or disclosed CPNI.
    (f) This section does not supersede any statute, regulation, order, 
or interpretation in any State, except to the extent that such statute, 
regulation,

[[Page 432]]

order, or interpretation is inconsistent with the provisions of this 
section, and then only to the extent of the inconsistency.

    Effective Date Note: At 78 FR 40613, July 5, 2013, Sec. 64.5111 was 
added. This section contain information collection and recordkeeping 
requirements and will not become effective until approval has been given 
by the Office of Management and Budget.



 Sec. Appendix A to Part 64--Telecommunications Service Priority (TSP) 

       System for National Security Emergency Preparedness (NSEP)

                        1. Purpose and Authority

    a. This appendix establishes policies and procedures and assigns 
responsibilities for the National Security Emergency Preparedness (NSEP) 
Telecommunications Service Priority (TSP) System. The NSEP TSP System 
authorizes priority treatment to certain domestic telecommunications 
services (including portions of U.S. international telecommunication 
services provided by U.S. service vendors) for which provisioning or 
restoration priority (RP) levels are requested, assigned, and approved 
in accordance with this appendix.
    b. This appendix is issued pursuant to sections 1, 4(i), 201 through 
205 and 303(r) of the Communications Act of 1934, as amended, 47 U.S.C. 
151, 154(i), 201 through 205 and 303(r). These sections grant to the 
Federal Communications Commission (FCC) the authority over the 
assignment and approval of priorities for provisioning and restoration 
of common carrier-provided telecommunications services. Under section 
706 of the Communications Act, this authority may be superseded, and 
expanded to include non-common carrier telecommunication services, by 
the war emergency powers of the President of the United States. This 
appendix provides the Commission's Order to telecommunication service 
vendors and users to comply with policies and procedures establishing 
the NSEP TSP System, until such policies and procedures are superseded 
by the President's war emergency powers. This appendix is intended to be 
read in conjunction with regulations and procedures that the Executive 
Office of the President issues (1) to implement responsibilities 
assigned in section 6(b) of this appendix, or (2) for use in the event 
this appendix is superseded by the President's war emergency powers.
    c. Together, this appendix and the regulations and procedures issued 
by the Executive Office of the President establish one uniform system of 
priorities for provisioning and restoration of NSEP telecommunication 
services both before and after invocation of the President's war 
emergency powers. In order that government and industry resources may be 
used effectively under all conditions, a single set of rules, 
regulations, and procedures is necessary, and they must be applied on a 
day-to-day basis to all NSEP services so that the priorities they 
establish can be implemented at once when the need arises.
    * In sections 2(a)(2) and 2(b)(2) of Executive Order No. 12472, 
``Assignment of National Security and Emergency Preparedness 
Telecommunications Functions'' April 3, 1984 (49 FR 13471 (1984)), the 
President assigned to the Director, Office of Science and Technology 
Policy, certain NSEP telecommunication resource management 
responsibilities. The term ``Executive Office of the President'' as used 
in this appendix refers to the official or organization designated by 
the President to act on his behalf.

                     2. Applicability and Revocation

    a. This appendix applies to NSEP telecommunications services:
    (1) For which initial or revised priority level assignments are 
requested pursuant to section 8 of this appendix.
    (2) Which were assigned restoration priorities under the provision 
of FCC Order 80-581; 81 FCC 2d 441 (1980); 47 CFR part 64, appendix A, 
``Priority System for the Restoration of Common Carrier Provided 
Intercity Private Line Services''; and are being resubmitted for 
priority level assignments pursuant to section 10 of this appendix. 
(Such services will retain assigned restoration priorities until a 
resubmission for a TSP assignment is completed or until the existing RP 
rules are terminated.)
    b. FCC Order 80-581 will continue to apply to all other intercity, 
private line circuits assigned restoration priorities thereunder until 
the fully operating capability date of this appendix, 30 months after 
the initial operating capability date referred to in subsection d of 
this section.
    c. In addition, FCC Order, ``Precedence System for Public 
Correspondence Services Provided by the Communications Common Carriers'' 
(34 FR 17292 (1969)); (47 CFR part 64, appendix B), is revoked as of the 
effective date of this appendix.
    d. The initial operating capability (IOC) date for NSEP TSP will be 
nine months after release in the Federal Register of the FCC's order 
following review of procedures submitted by the Executive Office of the 
President. On this IOC date requests for priority assignments generally 
will be accepted only by the Executive Office of the President.

                             3. Definitions

    As used in this part:

[[Page 433]]

    a. Assignment means the designation of priority level(s) for a 
defined NSEP telecommunications service for a specified time period.
    b. Audit means a quality assurance review in response to identified 
problems.
    c. Government refers to the Federal government or any foreign, 
state, county, municipal or other local government agency or 
organization. Specific qualifications will be supplied whenever 
reference to a particular level of government is intended (e.g., 
``Federal government'', ``state government''). ``Foreign government'' 
means any sovereign empire, kingdom, state, or independent political 
community, including foreign diplomatic and consular establishments and 
coalitions or associations of governments (e.g., North Atlantic Treaty 
Organization (NATO), Southeast Asian Treaty Organization (SEATO), 
Organization of American States (OAS), and government agencies or 
organization (e.g., Pan American Union, International Postal Union, and 
International Monetary Fund)).
    d. National Communications System (NCS) refers to that organization 
established by the President in Executive Order No. 12472, ``Assignment 
of National Security and Emergency Preparedness Telecommunications 
Functions,'' April 3, 1984, 49 FR 13471 (1984).
    e. National Coordinating Center (NCC) refers to the joint 
telecommunications industry-Federal government operation established by 
the National Communications System to assist in the initiation, 
coordination, restoration, and reconstitution of NSEP telecommunication 
services or facilities.
    f. National Security Emergency Preparedness (NSEP) 
telecommunications services, or ``NSEP services,'' means 
telecommunication services which are used to maintain a state of 
readiness or to respond to and manage any event or crisis (local, 
national, or international), which causes or could cause injury or harm 
to the population, damage to or loss of property, or degrades or 
threatens the NSEP posture of the United States. These services fall 
into two specific categories, Emergency NSEP and Essential NSEP, and are 
assigned priority levels pursuant to section 9 of this appendix.
    g. NSEP treatment refers to the provisioning of a telecommunication 
service before others based on the provisioning priority level assigned 
by the Executive Office of the President.
    h. Priority action means assignment, revision, revocation, or 
revalidation by the Executive Office of the President of a priority 
level associated with an NSEP telecommunications service.
    i. Priority level means the level that may be assigned to an NSEP 
telecommunications service specifying the order in which provisioning or 
restoration of the service is to occur relative to other NSEP and/or 
non-NSEP telecommunication services. Priority levels authorized by this 
appendix are designated (highest to lowest) ``E,'' ``1,'' ``2,'' ``3,'' 
``4,'' and ``5,'' for provisioning and ``1,'' ``2,'' ``3,'' ``4,'' and 
``5,'' for restoration.
    j. Priority level assignment means the priority level(s) designated 
for the provisioning and/or restoration of a particular NSEP 
telecommunications service under section 9 of this appendix.
    k. Private NSEP telecommunications services include non-common 
carrier telecommunications services including private line, virtual 
private line, and private switched network services.
    l. Provisioning means the act of supplying telecommunications 
service to a user, including all associated transmission, wiring and 
equipment. As used herein, ``provisioning'' and ``initiation'' are 
synonymous and include altering the state of an existing priority 
service or capability.
    m. Public switched NSEP telecommunications services include those 
NSEP telecommunications services utilizing public switched networks. 
Such services may include both interexchange and intraexchange network 
facilities (e.g., switching systems, interoffice trunks and subscriber 
loops).
    n. Reconciliation means the comparison of NSEP service information 
and the resolution of identified discrepancies.
    o. Restoration means the repair or returning to service of one or 
more telecommunication services that have experienced a service outage 
or are unusable for any reason, including a damaged or impaired 
telecommunications facility. Such repair or returning to service may be 
done by patching, rerouting, substitution of component parts or 
pathways, and other means, as determined necessary by a service vendor.
    p. Revalidation means the rejustification by a service user of a 
priority level assignment. This may result in extension by the Executive 
Office of the President of the expiration date associated with the 
priority level assignment.
    q. Revision means the change of priority level assignment for an 
NSEP telecommunications service. This includes any extension of an 
existing priority level assignment to an expanded NSEP service.
    r. Revocation means the elimination of a priority level assignment 
when it is no longer valid. All priority level assignments for an NSEP 
service are revoked upon service termination.
    s. Service identification refers to the information uniquely 
identifying an NSEP telecommunications service to the service vendor 
and/or service user.
    t. Service user refers to any individual or organization (including 
a service vendor) supported by a telecommunications service for which a 
priority level has been requested

[[Page 434]]

or assigned pursuant to section 8 or 9 of this appendix.
    u. Service vendor refers to any person, association, partnership, 
corporation, organization, or other entity (including common carriers 
and government organizations) that offers to supply any 
telecommunications equipment, facilities, or services (including 
customer premises equipment and wiring) or combination thereof. The term 
includes resale carriers, prime contractors, subcontractors, and 
interconnecting carriers.
    v. Spare circuits or services refers to those not being used or 
contracted for by any customer.
    w. Telecommunication services means the transmission, emission, or 
reception of signals, signs, writing, images, sounds, or intelligence of 
any nature, by wire, cable, satellite, fiber optics, laser, radio, 
visual or other electronic, electric, electromagnetic, or acoustically 
coupled means, or any combination thereof. The term can include 
necessary telecommunication facilities.
    x. Telecommunications Service Priority (TSP) system user refers to 
any individual, organization, or activity that interacts with the NSEP 
TSP System.

                                4. Scope

    a. Domestic NSEP services. The NSEP TSP System and procedures 
established by this appendix authorize priority treatment to the 
following domestic telecommunication services (including portions of 
U.S. international telecommunication services provided by U.S. vendors) 
for which provisioning or restoration priority levels are requested, 
assigned, and approved in accordance with this appendix:
    (1) Common carrier services which are:
    (a) Interstate or foreign telecommunications services,
    (b) Intrastate telecommunication services inseparable from 
interstate or foreign telecommunications services, and intrastate 
telecommunication services to which priority levels are assigned 
pursuant to section 9 of this appendix.

    Note: Initially, the NSEP TSP System's applicability to public 
switched services is limited to (a) provisioning of such services (e.g., 
business, centrex, cellular, foreign exchange, Wide Area Telephone 
Service (WATS) and other services that the selected vendor is able to 
provision) and (b) restoration of services that the selected vendor is 
able to restore.

    (2) Services which are provided by government and/or non-common 
carriers and are interconnected to common carrier services assigned a 
priority level pursuant to section 9 of this appendix.
    b. Control services and orderwires. The NSEP TSP System and 
procedures established by this appendix are not applicable to authorize 
priority treatment to control services or orderwires owned by a service 
vendor and needed for provisioning, restoration, or maintenance of other 
services owned by that service vendor. Such control services and 
orderwires shall have priority provisioning and restoration over all 
other telecommunication services (including NSEP services) and shall be 
exempt from preemption. However, the NSEP TSP System and procedures 
established by this appendix are applicable to control services or 
orderwires leased by a service vendor.
    c. Other services. The NSEP TSP System may apply, at the discretion 
of and upon special arrangements by the NSEP TSP System users involved, 
to authorize priority treatment to the following telecommunication 
services:
    (1) Government or non-common carrier services which are not 
connected to common carrier provided services assigned a priority level 
pursuant to section 9 of this appendix.
    (2) Portions of U.S. international services which are provided by 
foreign correspondents. (U.S. telecommunication service vendors are 
encouraged to ensure that relevant operating arrangements are consistent 
to the maximum extent practicable with the NSEP TSP System. If such 
arrangements do not exist, U.S. telecommunication service vendors should 
handle service provisioning and/or restoration in accordance with any 
system acceptable to their foreign correspondents which comes closest to 
meeting the procedures established in this appendix.)

                                5. Policy

    The NSEP TSP System is the regulatory, administrative, and 
operational system authorizing and providing for priority treatment, 
i.e., provisioning and restoration, of NSEP telecommunication services. 
As such, it establishes the framework for telecommunication service 
vendors to provision, restore, or otherwise act on a priority basis to 
ensure effective NSEP telecommunication services. The NSEP TSP System 
allows the assignment of priority levels to any NSEP service across 
three time periods, or stress conditions: Peacetime/Crisis/
Mobilizations, Attack/War, and Post-Attack/Recovery. Although priority 
levels normally will be assigned by the Executive Office of the 
President and retained by service vendors only for the current time 
period, they may be preassigned for the other two time periods at the 
request of service users who are able to identify and justify in 
advance, their wartime or post-attack NSEP telecommunication 
requirements. Absent such preassigned priority levels for the Attack/War 
and Post-Attack/Recovery periods, priority level assignments for the 
Peacetime/Crisis/Mobilization period will remain in effect. At all 
times, priority level assignments will be

[[Page 435]]

subject to revision by the FCC or (on an interim basis) the Executive 
Office of the President, based upon changing NSEP needs. No other system 
of telecommunication service priorities which conflicts with the NSEP 
TSP System is authorized.

                           6. Responsibilities

    a. The FCC will:
    (1) Provide regulatory oversight of implementation of the NSEP TSP 
System.
    (2) Enforce NSEP TSP System rules and regulations, which are 
contained in this appendix.
    (3) Act as final authority for approval, revision, or disapproval of 
priority actions by the Executive Office of the President and adjudicate 
disputes regarding either priority actions or denials of requests for 
priority actions by the Executive Office of the President, until 
superseded by the President's war emergency powers under section 706 of 
the Communications Act.
    (4) Function (on a discretionary basis) as a sponsoring Federal 
organization. (See section 6(c) below.)
    b. The Executive Office of the President will:
    (1) During exercise of the President's war emergency powers under 
section 706 of the Communications Act, act as the final approval 
authority for priority actions or denials of requests for priority 
actions, adjudicating any disputes.
    (2) Until the exercise of the President's war emergency powers, 
administer the NSEP TSP System which includes:
    (a) Receiving, processing, and evaluating requests for priority 
actions from service users, or sponsoring Federal government 
organizations on behalf of service users (e.g., Department of State or 
Defense on behalf of foreign governments, Federal Emergency Management 
Agency on behalf of state and local governments, and any Federal 
organization on behalf of private industry entities). Action on such 
requests will be completed within 30 days of receipt.
    (b) Assigning, revising, revalidating, or revoking priority levels 
as necessary or upon request of service users concerned, and denying 
requests for priority actions as necessary, using the categories and 
criteria specified in section 12 of this appendix. Action on such 
requests will be completed within 30 days of receipt.
    (c) Maintaining data on priority level assignments.
    (d) Periodically forwarding to the FCC lists of priority actions by 
the Executive Office of the President for review and approval.
    (e) Periodically initiating reconciliation.
    (f) Testing and evaluating the NSEP TSP System for effectiveness.
    (g) Conducting audits as necessary. Any Telecommunications Service 
Priority (TSP) System user may request the Executive Office of the 
President to conduct an audit.
    (h) Issuing, subject to review by the FCC, regulations and 
procedures supplemental to and consistent with this appendix regarding 
operation and use of the NSEP TSP System.
    (i) Serving as a centralized point-of-contact for collecting and 
disseminating to all interested parties (consistent with requirements 
for treatment of classified and proprietary material) information 
concerning use and abuse of the NSEP TSP System.
    (j) Establishing and assisting a TSP System Oversight Committee to 
identify and review any problems developing in the system and recommend 
actions to correct them or prevent recurrence. In addition to 
representatives of the Executive Office of the President, 
representatives from private industry (including telecommunication 
service vendors), state and local governments, the FCC, and other 
organizations may be appointed to that Committee.
    (k) Reporting at least quarterly to the FCC and TSP System Oversight 
Committee, together with any recommendations for action, the operational 
status of and trends in the NSEP TSP System, including:
    (i) Numbers of requests processed for the various priority actions, 
and the priority levels assigned.
    (ii) Relative percentages of services assigned to each priority 
level under each NSEP category and subcategory.
    (iii) Any apparent serious misassignment or abuse of priority level 
assignments.
    (iv) Any existing or developing problem.
    (l) Submitting semi-annually to the FCC and TSP System Oversight 
Committee a summary report identifying the time and event associated 
with each invocation of NSEP treatment under section 9(c) of this 
appendix, whether the NSEP service requirement was adequately handled, 
and whether any additional charges were incurred. These reports will be 
due by April 30th for the preceding July through December and by October 
31 for the preceding January through June time periods.
    (m) All reports submitted to the FCC should be directed to Chief, 
Public Safety and Homeland Security Bureau, Washington, DC 20554.
    (3) Function (on a discretionary basis) as a sponsoring Federal 
organization. (See section 6(c) below.)
    c. Sponsoring Federal organizations will:
    (1) Review and decide whether to sponsor foreign, state, and local 
government and private industry (including telecommunication service 
vendors) requests for priority actions. Federal organizations will 
forward sponsored requests with recommendations for disposition to the 
Executive Office of the President. Recommendations will be based on the 
categories and criteria in section 12 of this appendix.

[[Page 436]]

    (2) Forward notification of priority actions or denials of requests 
for priority actions from the Executive Office of the President to the 
requesting foreign, state, and local government and private industry 
entities.
    (3) Cooperate with the Executive Office of the President during 
reconciliation, revalidation, and audits.
    (4) Comply with any regulations and procedures supplemental to and 
consistent with this appendix which are issued by the Executive Office 
of the President.
    d. Service users will:
    (1) Identify services requiring priority level assignments and 
request and justify priority level assignments in accordance with this 
appendix and any supplemental regulations and procedures issued by the 
Executive Office of the President that are consistent with this 
appendix.
    (2) Request and justify revalidation of all priority level 
assignments at least every three years.
    (3) For services assigned priority levels, ensure (through 
contractual means or otherwise) availability of customer premises 
equipment and wiring necessary for end-to-end service operation by the 
service due date, and continued operation; and, for such services in the 
Emergency NSEP category, by the time that vendors are prepared to 
provide the services. Additionally, designate the organization 
responsible for the service on an end-to-end basis.
    (4) Be prepared to accept services assigned priority levels by the 
service due dates or, for services in the Emergency NSEP category, when 
they are available.
    (5) Pay vendors any authorized costs associated with services that 
are assigned priority levels.
    (6) Report to vendors any failed or unusable services that are 
assigned priority levels.
    (7) Designate a 24-hour point-of-contact for matters concerning each 
request for priority action and apprise the Executive Office of the 
President thereof.
    (8) Upon termination of services that are assigned priority levels, 
or circumstances warranting revisions in priority level assignment 
(e.g., expansion of service), request and justify revocation or 
revision.
    (9) When NSEP treatment is invoked under section 9(c) of this 
appendix, within 90 days following provisioning of the service involved, 
forward to the National Coordinating Center (see section 3(e) of this 
appendix) complete information identifying the time and event associated 
with the invocation and regarding whether the NSEP service requirement 
was adequately handled and whether any additional charges were incurred.
    (10) Cooperate with the Executive Office of the President during 
reconciliation, revalidation, and audits.
    (11) Comply with any regulations and procedures supplemental to and 
consistent with this appendix that are issued by the Executive Office of 
the President.
    e. Non-federal service users, in addition to responsibilities 
prescribed above in section 6(d), will obtain a sponsoring Federal 
organization for all requests for priority actions. If unable to find a 
sponsoring Federal organization, a non-federal service user may submit 
its request, which must include documentation of attempts made to obtain 
a sponsor and reasons given by the sponsor for its refusal, directly to 
the Executive Office of the President.
    f. Service vendors will:
    (1) When NSEP treatment is invoked by service users, provision NSEP 
telecommunication services before non-NSEP services, based on priority 
level assignments made by the Executive Office of the President. 
Provisioning will require service vendors to:
    (a) Allocate resources to ensure best efforts to provide NSEP 
services by the time required. When limited resources constrain response 
capability, vendors will address conflicts for resources by:
    (i) Providing NSEP services in order of provisioning priority level 
assignment (i.e., ``E'', ``1'', ``2'', ``3'', ``4'', or ``5'');
    (ii) Providing Emergency NSEP services (i.e., those assigned 
provisioning priority level ``E'') in order of receipt of the service 
requests;
    (iii) Providing Essential NSEP services (i.e., those assigned 
priority levels ``1'', ``2'', ``3'', ``4'', or ``5'') that have the same 
provisioning priority level in order of service due dates; and
    (iv) Referring any conflicts which cannot be resolved (to the mutual 
satisfaction of servicer vendors and users) to the Executive Office of 
the President for resolution.
    (b) Comply with NSEP service requests by:
    (i) Allocating resources necessary to provide Emergency NSEP 
services as soon as possible, dispatching outside normal business hours 
when necessary;
    (ii) Ensuring best efforts to meet requested service dates for 
Essential NSEP services, negotiating a mutually (customer and vendor) 
acceptable service due date when the requested service due date cannot 
be met; and
    (iii) Seeking National Coordinating Center (NCC) assistance as 
authorized under the NCC Charter (see section 1.3, NCC Charter, dated 
October 9, 1985).
    (2) Restore NSEP telecommunications services which suffer outage, or 
are reported as unusable or otherwise in need of restoration, before 
non-NSEP services, based on restoration priority level assignments. 
(Note: For broadband or multiple service facilities, restoration is 
permitted even though it might result in restoration of services 
assigned no or lower priority levels along with, or sometimes ahead of, 
some higher priority

[[Page 437]]

level services.) Restoration will require service vendors to restore 
NSEP services in order of restoration priority level assignment (i.e., 
``1'', ``2'', ``3'', ``4'', or ``5'') by:
    (a) Allocating available resources to restore NSEP services as 
quickly as practicable, dispatching outside normal business hours to 
restore services assigned priority levels ``1'', ``2'', and ``3'' when 
necessary, and services assigned priority level ``4'' and ``5'' when the 
next business day is more than 24 hours away;
    (b) Restoring NSEP services assigned the same restoration priority 
level based upon which can be first restored. (However, restoration 
actions in progress should not normally be interrupted to restore 
another NSEP service assigned the same restoration priority level);
    (c) Patching and/or rerouting NSEP services assigned restoration 
priority levels from ``1'' through ``5,'' when use of patching and/or 
rerouting will hasten restoration;
    (d) Seeking National Coordinating Center (NCC) assistance authorized 
under the NCC Charter; and
    (e) Referring any conflicts which cannot be resolved (to the mutual 
satisfaction of service vendors and users) to the Executive Office of 
the President for resolution.
    (3) Respond to provisioning requests of customers and/or other 
service vendors, and to restoration priority level assignments when an 
NSEP service suffers an outage or is reported as unusable, by:
    (a) Ensuring that vendor personnel understand their responsibilities 
to handle NSEP provisioning requests and to restore NSEP service; and
    (b) Providing a 24-hour point-of-contact for receiving provisioning 
requests for Emergency NSEP services and reports of NSEP service outages 
or unusability.
    (c) Seek verification from an authorized entity if legitimacy of a 
priority level assignment or provisioning request for an NSEP service is 
in doubt. However, processing of Emergency NSEP service requests will 
not be delayed for verification purposes.
    (4) Cooperate with other service vendors involved in provisioning or 
restoring a portion of an NSEP service by honoring provisioning or 
restoration priority level assignments, or requests for assistance to 
provision or restore NSEP services, as detailed in sections 6(f)(1), 
(2), and (3) above.
    (5) All service vendors, including resale carriers, are required to 
ensure that service vendors supplying underlying facilities are provided 
information necessary to implement priority treatment of facilities that 
support NSEP services.
    (6) Preempt, when necessary, existing services to provide an NSEP 
service as authorized in section 7 of this appendix.
    (7) Assist in ensuring that priority level assignments of NSEP 
services are accurately identified ``end-to-end'' by:
    (a) Seeking verification from an authorized Federal government 
entity if the legitimacy of the restoration priority level assignment is 
in doubt;
    (b) Providing to subcontractors and/or interconnecting carriers the 
restoration priority level assigned to a service;
    (c) Supplying, to the Executive Office of the President, when acting 
as a prime contractor to a service user, confirmation information 
regarding NSEP service completion for that portion of the service they 
have contracted to supply;
    (d) Supplying, to the Executive Office of the President, NSEP 
service information for the purpose of reconciliation.
    (e) Cooperating with the Executive Office of the President during 
reconciliation.
    (f) Periodically initiating reconciliation with their subcontractors 
and arranging for subsequent subcontractors to cooperate in the 
reconciliation process.
    (8) Receive compensation for costs authorized through tariffs or 
contracts by:
    (a) Provisions contained in properly filed state or Federal tariffs; 
or
    (b) Provisions of properly negotiated contracts where the carrier is 
not required to file tariffs.
    (9) Provision or restore only the portions of services for which 
they have agreed to be responsible (i.e., have contracted to supply), 
unless the President's war emergency powers under section 706 of the 
Communications Act are in effect.
    (10) Cooperate with the Executive Office of the President during 
audits.
    (11) Comply with any regulations or procedures supplemental to and 
consistent with this appendix that are issued by the Executive Office of 
the President and reviewed by the FCC.
    (12) Insure that at all times a reasonable number of public switched 
network services are made available for public use.
    (13) Not disclose information concerning NSEP services they provide 
to those not having a need-to-know or might use the information for 
competitive advantage.

                   7. Preemption of Existing Services

    When necessary to provision or restore NSEP services, service 
vendors may preempt services they provide as specified below. ``User'' 
as used in this Section means any user of a telecommunications service, 
including both NSEP and non-NSEP services. Prior consent by a preempted 
user is not required.
    a. The sequence in which existing services may be preempted to 
provision NSEP services assigned a provisioning priority level ``E'' or 
restore NSEP services assigned a restoration priority level from ``1'' 
through ``5'':

[[Page 438]]

    (1) Non-NSEP services: If suitable spare services are not available, 
then, based on the considerations in this appendix and the service 
vendor's best judgment, non-NSEP services will be preempted. After 
ensuring a sufficient number of public switched services are available 
for public use, based on the service vendor's best judgment, such 
services may be used to satisfy a requirement for provisioning or 
restoring NSEP services.
    (2) NSEP services: If no suitable spare or non-NSEP services are 
available, then existing NSEP services may be preempted to provision or 
restore NSEP services with higher priority level assignments. When this 
is necessary, NSEP services will be selected for preemption in the 
inverse order of priority level assignment.
    (3) Service vendors who are preempting services will ensure their 
best effort to notify the service user of the preempted service and 
state the reason for and estimated duration of the preemption.
    b. Service vendors may, based on their best judgment, determine the 
sequence in which existing services may be preempted to provision NSEP 
services assigned a provisioning priority of ``1'' through ``5''. 
Preemption is not subject to the consent of the user whose service will 
be preempted.

                  8. Requests for Priority Assignments.

    All service users are required to submit requests for priority 
actions through the Executive Office of the President in the format and 
following the procedures prescribed by that Office.

     9. Assignment, Approval, Use, and Invocation of Priority Levels

    a. Assignment and approval of priority levels. Priority level 
assignments will be based upon the categories and criteria specified in 
section 12 of this appendix. A priority level assignment made by the 
Executive Office of the President will serve as that Office's 
recommendation to the FCC. Until the President's war emergency powers 
are invoked, priority level assignments must be approved by the FCC. 
However, service vendors are ordered to implement any priority level 
assignments that are pending FCC approval.
    After invocation of the President's war emergency powers, these 
requirements may be superseded by other procedures issued by the 
Executive Office of the President.
    b. Use of Priority Level Assignments.
    (1) All provisioning and restoration priority level assignments for 
services in the Emergency NSEP category will be included in initial 
service orders to vendors. Provisioning priority level assignments for 
Essential NSEP services, however, will not usually be included in 
initial service orders to vendors. NSEP treatment for Essential NSEP 
services will be invoked and provisioning priority level assignments 
will be conveyed to service vendors only if the vendors cannot meet 
needed service dates through the normal provisioning process.
    (2) Any revision or revocation of either provisioning or restoration 
priority level assignments will also be transmitted to vendors.
    (3) Service vendors shall accept priority levels and/or revisions 
only after assignment by the Executive Office of the President.

    Note: Service vendors acting as prime contractors will accept 
assigned NSEP priority levels only when they are accompanied by the 
Executive Office of the President designated service identification, 
i.e., TSP Authorization Code. However, service vendors are authorized to 
accept priority levels and/or revisions from users and contracting 
activities before assignment by the Executive Office of the President 
when service vendor, user, and contracting activities are unable to 
communicate with either the Executive Office of the President or the 
FCC. Processing of Emergency NSEP service requests will not be delayed 
for verification purposes.

    c. Invocation of NSEP treatment. To invoke NSEP treatment for the 
priority provisioning of an NSEP telecommunications service, an 
authorized Federal official either within, or acting on behalf of, the 
service user's organization must make a written or oral declaration to 
concerned service vendor(s) and the Executive Office of the President 
that NSEP treatment is being invoked. Authorized Federal officials 
include the head or director of a Federal agency, commander of a 
unified/specified military command, chief of a military service, or 
commander of a major military command; the delegates of any of the 
foregoing; or any other officials as specified in supplemental 
regulations or procedures issued by the Executive Office of the 
President. The authority to invoke NSEP treatment may be delegated only 
to a general or flag officer of a military service, civilian employee of 
equivalent grade (e.g., Senior Executive Service member), Federal 
Coordinating Officer or Federal Emergency Communications Coordinator/
Manager, or any other such officials specified in supplemental 
regulations or procedures issued by the Executive Office of the 
President. Delegates must be designated as such in writing, and written 
or oral invocations must be accomplished, in accordance with 
supplemental regulations or procedures issued by the Executive Office of 
the President.

 10. Resubmission of Circuits Presently Assigned Restoration Priorities

    All circuits assigned restoration priorities must be reviewed for 
eligibility for initial restoration priority level assignment under the 
provisions of this appendix. Circuits currently assigned restoration 
priorities, and

[[Page 439]]

for which restoration priority level assignments are requested under 
section 8 of this appendix, will be resubmitted to the Executive Office 
of the President. To resubmit such circuits, service users will comply 
with applicable provisions of section 6(d) of this appendix.

                               11. Appeal

    Service users or sponsoring Federal organizations may appeal any 
priority level assignment, denial, revision, revocation, approval, or 
disapproval to the Executive Office of the President within 30 days of 
notification to the service user. The appellant must use the form or 
format required by the Executive Office of the President and must serve 
the FCC with a copy of its appeal. The Executive Office of the President 
will act on the appeal within 90 days of receipt. Service users and 
sponsoring Federal organizations may only then appeal directly to the 
FCC. Such FCC appeal must be filed within 30 days of notification of the 
Executive Office of the President's decision on appeal. Additionally, 
the Executive Office of the President may appeal any FCC revisions, 
approvals, or disapprovals to the FCC. All appeals to the FCC must be 
submitted using the form or format required. The party filing its appeal 
with the FCC must include factual details supporting its claim and must 
serve a copy on the Executive Office of the President and any other 
party directly involved. Such party may file a response within 20 days, 
and replies may be filed within 10 days thereafter. The Commission will 
not issue public notices of such submissions. The Commission will 
provide notice of its decision to the parties of record. Any appeals to 
the Executive Office of the President that include a claim of new 
information that has not been presented before for consideration may be 
submitted at any time.

      12. NSEP TSP System Categories, Criteria, and Priority Levels

    a. General. NSEP TSP System categories and criteria, and permissible 
priority level assignments, are defined and explained below.
    (1) The Essential NSEP category has four subcategories: National 
Security Leadership; National Security Posture and U.S. Population 
Attack Warning; Public Health, Safety, and Maintenance of Law and Order; 
and Public Welfare and Maintenance of National Economic Posture. Each 
subcategory has its own criteria. Criteria are also shown for the 
Emergency NSEP category, which has no sub-categories.
    (2) Priority levels of ``1,'' ``2,'' ``3,'' ``4,'' and ``5'' may be 
assigned for provisioning and/or restoration of Essential NSEP 
telecommunication services. However, for Emergency NSEP 
telecommunications services, a priority level ``E'' is assigned for 
provisioning. A restoration priority level from ``1'' through ``5'' may 
be assigned if an Emergency NSEP service also qualifies for such a 
restoration priority level under the Essential NSEP category.
    (3) The NSEP TSP System allows the assignment of priority levels to 
any NSEP telecommunications service across three time periods, or stress 
conditions: Peacetime/Crisis/Mobilization, Attack/War, and Post-Attack/
Recovery. Priority levels will normally be assigned only for the first 
time period. These assigned priority levels will apply through the onset 
of any attack, but it is expected that they would later be revised by 
surviving authorized telecommunication resource managers within the 
Executive Office of the President based upon specific facts and 
circumstances arising during the Attack/War and Post-Attack/Recovery 
time periods.
    (4) Service users may, for their own internal use, assign 
subpriorities to their services assigned priority levels. Receipt of and 
response to any such subpriorities is optional for service vendors.
    (5) The following paragraphs provide a detailed explanation of the 
categories, subcategories, criteria, and priority level assignments, 
beginning with the Emergency NSEP category.
    b. Emergency NSEP. Telecommunications services in the Emergency NSEP 
category are those new services so critical as to be required to be 
provisioned at the earliest possible time, without regard to the costs 
of obtaining them.
    (1) Criteria. To qualify under the Emergency NSEP category, the 
service must meet criteria directly supporting or resulting from at 
least one of the following NSEP functions:
    (a) Federal government activity responding to a Presidentially 
declared disaster or emergency as defined in the Disaster Relief Act (42 
U.S.C. 5122).
    (b) State or local government activity responding to a 
Presidentially declared disaster or emergency.
    (c) Response to a state of crisis declared by the National Command 
Authorities (e.g., exercise of Presidential war emergency powers under 
section 706 of the Communications Act.)
    (d) Efforts to protect endangered U.S. personnel or property.
    (e) Response to an enemy or terrorist action, civil disturbance, 
natural disaster, or any other unpredictable occurrence that has damaged 
facilities whose uninterrupted operation is critical to NSEP or the 
management of other ongoing crises.
    (f) Certification by the head or director of a Federal agency, 
commander of a unified/specified command, chief of a military service, 
or commander of a major military command, that the telecommunications 
service

[[Page 440]]

is so critical to protection of life and property or to NSEP that it 
must be provided immediately.
    (g) A request from an official authorized pursuant to the Foreign 
Intelligence Surveillance Act (50 U.S.C. 1801 et seq. and 18 U.S.C. 
2511, 2518, 2519).
    (2) Priority Level Assignment.
    (a) Services qualifying under the Emergency NSEP category are 
assigned priority level ``E'' for provisioning.
    (b) After 30 days, assignments of provisioning priority level ``E'' 
for Emergency NSEP services are automatically revoked unless extended 
for another 30-day period. A notice of any such revocation will be sent 
to service vendors.
    (c) For restoration, Emergency NSEP services may be assigned 
priority levels under the provisions applicable to Essential NSEP 
services (see section 12(c)). Emergency NSEP services not otherwise 
qualifying for restoration priority level assignment as Essential NSEP 
may be assigned a restoration priority level ``5'' for a 30-day period. 
Such 30-day restoration priority level assignments will be revoked 
automatically unless extended for another 30-day period. A notice of any 
such revocation will be sent to service vendors.
    c. Essential NSEP. Telecommunication services in the Essential NSEP 
category are those required to be provisioned by due dates specified by 
service users, or restored promptly, normally without regard to 
associated overtime or expediting costs. They may be assigned priority 
level of ``1,'' ``2,'' ``3,'' ``4,'' or ``5'' for both provisioning and 
restoration, depending upon the nature and urgency of the supported 
function, the impact of lack of service or of service interruption upon 
the supported function, and, for priority access to public switched 
services, the user's level of responsibility. Priority level assignments 
will be valid for no more than three years unless revalidated. To be 
categorized as Essential NSEP, a telecommunications service must qualify 
under one of the four following subcategories: National Security 
Leadership; National Security Posture and U.S. Population Attack 
Warning; Public Health, Safety and Maintenance of Law and Order; or 
Public Welfare and Maintenance of National Economic Posture. (Note Under 
emergency circumstances, Essential NSEP telecommunication services may 
be recategorized as Emergency NSEP and assigned a priority level ``E'' 
for provisioning.)
    (1) National security leadership. This subcategory will be strictly 
limited to only those telecommunication services essential to national 
survival if nuclear attack threatens or occurs, and critical orderwire 
and control services necessary to ensure the rapid and efficient 
provisioning or restoration of other NSEP telecommunication services. 
Services in this subcategory are those for which a service interruption 
of even a few minutes would have serious adverse impact upon the 
supported NSEP function.
    (a) Criteria. To qualify under this subcategory, a service must be 
at least one of the following:
    (i) Critical orderwire, or control service, supporting other NSEP 
functions.
    (ii) Presidential communications service critical to continuity of 
government and national leadership during crisis situations.
    (iii) National Command Authority communications service for military 
command and control critical to national survival.
    (iv) Intelligence communications service critical to warning of 
potentially catastrophic attack.
    (v) Communications service supporting the conduct of diplomatic 
negotiations critical to arresting or limiting hostilities.
    (b) Priority level assignment. Services under this subcategory will 
normally be assigned priority level ``1'' for provisioning and 
restoration during the Peace/Crisis/Mobilization time period.
    (2) National security posture and U.S. population attack warning. 
This subcategory covers those minimum additional telecommunication 
services essential to maintaining an optimum defense, diplomatic, or 
continuity-of-government postures before, during, and after crises 
situations. Such situations are those ranging from national emergencies 
to international crises, including nuclear attack. Services in this 
subcategory are those for which a service interruption ranging from a 
few minutes to one day would have serious adverse impact upon the 
supported NSEP function.
    (a) Criteria. To qualify under this subcategory, a service must 
support at least one of the following NSEP functions:
    (i) Threat assessment and attack warning.
    (ii) Conduct of diplomacy.
    (iii) Collection, processing, and dissemination of intelligence.
    (iv) Command and control of military forces.
    (v) Military mobilization.
    (vi) Continuity of Federal government before, during, and after 
crises situations.
    (vii) Continuity of state and local government functions supporting 
the Federal government during and after national emergencies.
    (viii) Recovery of critical national functions after crises 
situations.
    (ix) National space operations.
    (b) Priority level assignment. Services under this subcategory will 
normally be assigned priority level ``2,'' ``3,'' ``4,'' or ``5'' for 
provisioning and restoration during Peacetime/Crisis/Mobilization.
    (3) Public health, safety, and maintenance of law and order. This 
subcategory covers the minimum number of telecommunication services 
necessary for giving civil alert to

[[Page 441]]

the U.S. population and maintaining law and order and the health and 
safety of the U.S. population in times of any national, regional, or 
serious local emergency. These services are those for which a service 
interruption ranging from a few minutes to one day would have serious 
adverse impact upon the supported NSEP functions.
    (a) Criteria. To qualify under this subcategory, a service must 
support at least one of the following NSEP functions:
    (i) Population warning (other than attack warning).
    (ii) Law enforcement.
    (iii) Continuity of critical state and local government functions 
(other than support of the Federal government during and after national 
emergencies).
    (vi) Hospitals and distributions of medical supplies.
    (v) Critical logistic functions and public utility services.
    (vi) Civil air traffic control.
    (vii) Military assistance to civil authorities.
    (viii) Defense and protection of critical industrial facilities.
    (ix) Critical weather services.
    (x) Transportation to accomplish the foregoing NSEP functions.
    (b) Priority level assignment. Service under this subcategory will 
normally be assigned priority levels ``3,'' ``4,'' or ``5'' for 
provisioning and restoration during Peacetime/Crisis/Mobilization.
    (4) Public welfare and maintenance of national economic posture. 
This subcategory covers the minimum number of telecommunications 
services necessary for maintaining the public welfare and national 
economic posture during any national or regional emergency. These 
services are those for which a service interruption ranging from a few 
minutes to one day would have serious adverse impact upon the supported 
NSEP function.
    (a) Criteria. To qualify under this subcategory, a service must 
support at least one of the following NSEP functions:
    (i) Distribution of food and other essential supplies.
    (ii) Maintenance of national monetary, credit, and financial 
systems.
    (iii) Maintenance of price, wage, rent, and salary stabilization, 
and consumer rationing programs.
    (iv) Control of production and distribution of strategic materials 
and energy supplies.
    (v) Prevention and control of environmental hazards or damage.
    (vi) Transportation to accomplish the foregoing NSEP functions.
    (b) Priority level assignment. Services under this subcategory will 
normally be assigned priority levels ``4'' or ``5'' for provisioning and 
restoration during Peacetime/Crisis/Mobilization.
    d. Limitations. Priority levels will be assigned only to the minimum 
number of telecommunication services required to support an NSEP 
function. Priority levels will not normally be assigned to backup 
services on a continuing basis, absent additional justification, e.g., a 
service user specifies a requirement for physically diverse routing or 
contracts for additional continuity-of-service features. The Executive 
Office of the President may also establish limitations upon the relative 
numbers of services which may be assigned any restoration priority 
level. These limitations will not take precedence over laws or executive 
orders. Such limitations shall not be exceeded absent waiver by the 
Executive Office of the President.
    e. Non-NSEP services. Telecommunication services in the non-NSEP 
category will be those which do not meet the criteria for either 
Emergency NSEP or Essential NSEP.

[53 FR 47536, Nov. 23, 1988; 54 FR 152, Jan. 4, 1989; 54 FR 1471, Jan. 
13, 1989, as amended at 67 FR 13229, Mar. 21, 2002; 71 FR 69038, Nov. 
29, 2006]



 Sec. Appendix B to Part 64--Priority Access Service (PAS) for National 

               Security and Emergency Preparedness (NSEP)

                              1. Authority

    This appendix is issued pursuant to sections 1, 4(i), 201 through 
205 and 303(r) of the Communications Act of 1934, as amended. Under 
these sections, the Federal Communications Commission (FCC) may permit 
the assignment and approval of priorities for access to commercial 
mobile radio service (CMRS) networks. Under section 706 of the 
Communications Act, this authority may be superseded by the war 
emergency powers of the President of the United States. This appendix 
provides the Commission's Order to CMRS providers and users to comply 
with policies and procedures establishing the Priority Access Service 
(PAS). This appendix is intended to be read in conjunction with 
regulations and procedures that the Executive Office of the President 
issues:
    (1) To implement responsibilities assigned in section 3 of this 
appendix, or
    (2) For use in the event this appendix is superseded by the 
President's emergency war powers. Together, this appendix and the 
regulations and procedures issued by the Executive Office of the 
President establish one uniform system of priority access service both 
before and after invocation of the President's emergency war powers.

                              2. Background

    a. Purpose. This appendix establishes regulatory authorization for 
PAS to support the needs of NSEP CMRS users.

[[Page 442]]

    b. Applicability. This appendix applies to the provision of PAS by 
CMRS licensees to users who qualify under the provisions of section 5 of 
this appendix.
    c. Description. PAS provides the means for NSEP telecommunications 
users to obtain priority access to available radio channels when 
necessary to initiate emergency calls. It does not preempt calls in 
progress and is to be used during situations when CMRS network 
congestion is blocking NSEP call attempts. PAS is to be available to 
authorized NSEP users at all times in equipped CMRS markets where the 
service provider has voluntarily decided to provide such service. 
Authorized users would activate the feature on a per call basis by 
dialing a feature code such as *XX. PAS priorities 1 through 5 are 
reserved for qualified and authorized NSEP users, and those users are 
provided access to CMRS channels before any other CMRS callers.
    d. Definitions. As used in this appendix:
    1. Authorizing agent refers to a Federal or State entity that 
authenticates, evaluates and makes recommendations to the Executive 
Office of the President regarding the assignment of priority access 
service levels.
    2. Service provider means an FCC-licensed CMRS provider. The term 
does not include agents of the licensed CMRS provider or resellers of 
CMRS service.
    3. Service user means an individual or organization (including a 
service provider) to whom or which a priority access assignment has been 
made.
    4. The following terms have the same meaning as in Appendix A to 
Part 64:
    (a) Assignment;
    (b) Government;
    (c) National Communications System;
    (d) National Coordinating Center;
    (e) National Security Emergency Preparedness (NSEP) 
Telecommunications Services (excluding the last sentence);
    (f) Reconciliation;
    (g) Revalidation;
    (h) Revision;
    (i) Revocation.
    e. Administration. The Executive Office of the President will 
administer PAS.

                           3. Responsibilities

    a. The Federal Communications Commission will provide regulatory 
oversight of the implementation of PAS, enforce PAS rules and 
regulations, and act as final authority for approval, revision, or 
disapproval of priority assignments by the Executive Office of the 
President by adjudicating disputes regarding either priority assignments 
or the denial thereof by the Executive Office of the President until 
superseded by the President's war emergency powers under Section 706 of 
the Communications Act.
    b. The Executive Office of the President (EOP) will administer the 
PAS system. It will:
    1. Act as the final approval or denial authority for the assignment 
of priorities and the adjudicator of disputes during the exercise of the 
President's war emergency powers under section 706 of the Communications 
Act.
    2. Receive, process, and evaluate requests for priority actions from 
authorizing agents on behalf of service users or directly from service 
users. Assign priorities or deny requests for priority using the 
priorities and criteria specified in section 5 of this appendix. Actions 
on such requests should be completed within 30 days of receipt.
    3. Convey priority assignments to the service provider and the 
authorizing agent.
    4. Revise, revalidate, reconcile, and revoke priority level 
assignments with service users and service providers as necessary to 
maintain the viability of the PAS system.
    5. Maintain a database for PAS related information.
    6. Issue new or revised regulations, procedures, and instructional 
material supplemental to and consistent with this appendix regarding the 
operation, administration, and use of PAS.
    7. Provide training on PAS to affected entities and individuals.
    8. Enlarge the role of the Telecommunications Service Priority 
System Oversight Committee to include oversight of the PAS system.
    9. Report periodically to the FCC on the status of PAS.
    10. Disclose content of the NSEP PAS database only as may be 
required by law.
    c. An Authorizing agent shall:
    1. Identify itself as an authorizing agent and its community of 
interest (State, Federal Agency) to the EOP. State Authorizing Agents 
will provide a central point of contact to receive priority requests 
from users within their state. Federal Authorizing Agents will provide a 
central point of contact to receive priority requests from federal users 
or federally sponsored entities.
    2. Authenticate, evaluate, and make recommendations to the EOP to 
approve priority level assignment requests using the priorities and 
criteria specified in section 5 of this appendix. As a guide, PAS 
authorizing agents should request the lowest priority level that is 
applicable and the minimum number of CMRS services required to support 
an NSEP function. When appropriate, the authorizing agent will recommend 
approval or deny requests for PAS.
    3. Ensure that documentation is complete and accurate before 
forwarding it to the EOP.
    4. Serve as a conduit for forwarding PAS information from the EOP to 
the service user and vice versa. Information will include

[[Page 443]]

PAS requests and assignments, reconciliation and revalidation 
notifications, and other information.
    5. Participate in reconciliation and revalidation of PAS information 
at the request of the EOP.
    6. Comply with any regulations and procedures supplemental to and 
consistent with this appendix that are issued by the EOP.
    7. Disclose content of the NSEP PAS database only to those having a 
need-to-know.
    d. Service users will:
    1. Determine the need for and request PAS assignments in a planned 
process, not waiting until an emergency has occurred.
    2. Request PAS assignments for the lowest applicable priority level 
and minimum number of CMRS services necessary to provide NSEP 
telecommunications management and response functions during emergency/
disaster situations.
    3. Initiate PAS requests through the appropriate authorizing agent. 
The EOP will make final approval or denial of PAS requests and may 
direct service providers to remove PAS if appropriate. (Note: State and 
local government or private users will apply for PAS through their 
designated State government authorizing agent. Federal users will apply 
for PAS through their employing agency. State and local users in states 
where there has been no designation will be sponsored by the Federal 
agency concerned with the emergency function as set forth in Executive 
Order 12656. If no authorizing agent is determined using these criteria, 
the EOP will serve as the authorizing agent.)
    4. Submit all correspondence regarding PAS to the authorizing agent.
    5. Invoke PAS only when CMRS congestion blocks network access and 
the user must establish communications to fulfill an NSEP mission. Calls 
should be as brief as possible so as to afford CMRS service to other 
NSEP users.
    6. Participate in reconciliation and revalidation of PAS information 
at the request of the authorizing agent or the EOP.
    7. Request discontinuance of PAS when the NSEP qualifying criteria 
used to obtain PAS is no longer applicable.
    8. Pay service providers as billed for PAS.
    9. Comply with regulations and procedures that are issued by the EOP 
which are supplemental to and consistent with this appendix.
    e. Service providers who offer any form of priority access service 
for NSEP purposes shall provide that service in accordance with this 
appendix. As currently described in the Priority Access and Channel 
Assignment Standard (IS-53-A), service providers will:
    1. Provide PAS levels 1, 2, 3, 4, or 5 only upon receipt of an 
authorization from the EOP and remove PAS for specific users at the 
direction of the EOP.
    2. Ensure that PAS system priorities supersede any other NSEP 
priority which may be provided.
    3. Designate a point of contact to coordinate with the EOP regarding 
PAS.
    4. Participate in reconciliation and revalidation of PAS information 
at the request of the EOP.
    5. As technically and economically feasible, provide roaming service 
users the same grade of PAS provided to local service users.
    6. Disclose content of the NSEP PAS database only to those having a 
need-to-know or who will not use the information for economic advantage.
    7. Comply with regulations and procedures supplemental to and 
consistent with this appendix that are issued by the EOP.
    8. Insure that at all times a reasonable amount of CMRS spectrum is 
made available for public use.
    9. Notify the EOP and the service user if PAS is to be discontinued 
as a service.
    f. The Telecommunications Service Priority Oversight Committee will 
identify and review any systemic problems associated with the PAS system 
and recommend actions to correct them or prevent their recurrence.

                                4. Appeal

    Service users and authorizing agents may appeal any priority level 
assignment, denial, revision or revocation to the EOP within 30 days of 
notification to the service user. The EOP will act on the appeal within 
90 days of receipt. If a dispute still exists, an appeal may then be 
made to the FCC within 30 days of notification of the EOP's decision. 
The party filing the appeal must include factual details supporting its 
claim and must provide a copy of the appeal to the EOP and any other 
party directly involved. Involved parties may file a response to the 
appeal made to the FCC within 20 days, and the initial filing party may 
file a reply within 10 days thereafter. The FCC will provide notice of 
its decision to the parties of record. Until a decision is made, the 
service will remain status quo.

             5. PAS Priority Levels and Qualifying Criteria

    The following PAS priority levels and qualifying criteria apply 
equally to all users and will be used as a basis for all PAS 
assignments. There are five levels of NSEP priorities, priority one 
being the highest. The five priority levels are:
    1. Executive Leadership and Policy Makers
    2. Disaster Response/Military Command and Control
    3. Public Health, Safety and Law Enforcement Command
    4. Public Services/Utilities and Public Welfare
    5. Disaster Recovery

[[Page 444]]

    These priority levels were selected to meet the needs of the 
emergency response community and provide priority access for the command 
and control functions critical to management of and response to national 
security and emergency situations, particularly during the first 24 to 
72 hours following an event. Priority assignments should only be 
requested for key personnel and those individuals in national security 
and emergency response leadership positions. PAS is not intended for use 
by all emergency service personnel.

         A. Priority 1: Executive Leadership and Policy Makers.

    Users who qualify for the Executive Leadership and Policy Makers 
priority will be assigned priority one. A limited number of CMRS 
technicians who are essential to restoring the CMRS networks shall also 
receive this highest priority treatment. Examples of those eligible 
include:
    (i) The President of the United States, the Secretary of Defense, 
selected military leaders, and the minimum number of senior staff 
necessary to support these officials;
    (ii) State governors, lieutenant governors, cabinet-level officials 
responsible for public safety and health, and the minimum number of 
senior staff necessary to support these officials; and
    (iii) Mayors, county commissioners, and the minimum number of senior 
staff to support these officials.

      B. Priority 2: Disaster Response/Military Command and Control

    Users who qualify for the Disaster Response/Military Command and 
Control priority will be assigned priority two. Individuals eligible for 
this priority include personnel key to managing the initial response to 
an emergency at the local, state, regional and federal levels. Personnel 
selected for this priority should be responsible for ensuring the 
viability or reconstruction of the basic infrastructure in an emergency 
area. In addition, personnel essential to continuity of government and 
national security functions (such as the conduct of international 
affairs and intelligence activities) are also included in this priority. 
Examples of those eligible include:
    (i) Federal emergency operations center coordinators, e.g., Manager, 
National Coordinating Center for Telecommunications, National 
Interagency Fire Center, Federal Coordinating Officer, Federal Emergency 
Communications Coordinator, Director of Military Support;
    (ii) State emergency Services director, National Guard Leadership, 
State and Federal Damage Assessment Team Leaders;
    (iii) Federal, state and local personnel with continuity of 
government responsibilities;
    (iv) Incident Command Center Managers, local emergency managers, 
other state and local elected public safety officials; and
    (v) Federal personnel with intelligence and diplomatic 
responsibilities.

    C. Priority 3: Public Health, Safety, and Law Enforcement Command

    Users who qualify for the Public Health, Safety, and Law Enforcement 
Command priority will be assigned priority three. Eligible for this 
priority are individuals who direct operations critical to life, 
property, and maintenance of law and order immediately following an 
event. Examples of those eligible include:
    (i) Federal law enforcement command;
    (ii) State police leadership;
    (iii) Local fire and law enforcement command;
    (iv) Emergency medical service leaders;
    (v) Search and rescue team leaders; and
    (vi) Emergency communications coordinators.

       D. Priority 4: Public Services/Utilities and Public Welfare

    Users who qualify for the Public Services/Utilities and Public 
Welfare priority will be assigned priority four. Eligible for this 
priority are those users whose responsibilities include managing public 
works and utility infrastructure damage assessment and restoration 
efforts and transportation to accomplish emergency response activities. 
Examples of those eligible include:
    (i) Army Corps of Engineers leadership;
    (ii) Power, water and sewage and telecommunications utilities; and
    (iii) Transportation leadership.

                    E. Priority 5: Disaster Recovery

    Users who qualify for the Disaster Recovery priority will be 
assigned priority five. Eligible for this priority are those individuals 
responsible for managing a variety of recovery operations after the 
initial response has been accomplished. These functions may include 
managing medical resources such as supplies, personnel, or patients in 
medical facilities. Other activities such as coordination to establish 
and stock shelters, to obtain detailed damage assessments, or to support 
key disaster field office personnel may be included. Examples of those 
eligible include:
    (i) Medical recovery operations leadership;
    (ii) Detailed damage assessment leadership;
    (iii) Disaster shelter coordination and management; and
    (iv) Critical Disaster Field Office support personnel.

[[Page 445]]

                             6. Limitations

    PAS will be assigned only to the minimum number of CMRS services 
required to support an NSEP function. The Executive Office of the 
President may also establish limitations upon the relative numbers of 
services that may be assigned PAS or the total number of PAS users in a 
serving area. These limitations will not take precedence over laws or 
executive orders. Limitations established shall not be exceeded.

[65 FR 48396, Aug. 8, 2000]



PART 65_INTERSTATE RATE OF RETURN PRESCRIPTION PROCEDURES AND METHODOLOGIES--

Table of Contents



                            Subpart A_General

Sec.
65.1 Application of part 65.

                          Subpart B_Procedures

65.100 Participation and acceptance of service designation.
65.101 Initiation of unitary rate of return prescription proceedings.
65.102 Petitions for exclusion from unitary treatment and for individual 
          treatment in determining authorized return for interstate 
          exchange access service.
65.103 Procedures for filing rate of return submissions.
65.104 Page limitations for rate of return submissions.
65.105 Discovery.

                       Subpart C_Exchange Carriers

65.300 Calculations of the components and weights of the cost of 
          capital.
65.301 Cost of equity.
65.302 Cost of debt.
65.303 Cost of preferred stock.
65.304 Capital structure.
65.305 Calculation of the weighted average cost of capital.
65.306 Calculation accuracy.
65.450 Net income.

                    Subpart D_Interexchange Carriers

65.500 Net income.

                    Subpart E_Rate of Return Reports

65.600 Rate of return reports.

               Subpart F_Maximum Allowable Rates of Return

65.700 Determining the maximum allowable rate of return.
65.701 Period of review.
65.702 Measurement of interstate service earnings.

                           Subpart G_Rate Base

65.800 Rate base.
65.810 Definitions.
65.820 Included items.
65.830 Deducted items.

    Authority: Secs. 4, 201, 202, 203, 205, 218, 403, 48 Stat., 1066, 
1072, 1077, 1094, as amended, 47 U.S.C. 151, 154, 201, 202, 203, 204, 
205, 218, 219, 220, 403.



                            Subpart A_General



Sec. 65.1  Application of part 65.

    (a) This part establishes procedures and methodologies for 
Commission prescription of an authorized unitary interstate exchange 
access rate of return and individual rates of return for the interstate 
exchange access rates of certain carriers pursuant to Sec. 65.102. This 
part shall apply to those interstate services of local exchange carriers 
as the Commission shall designate by rule or order, except that all 
local exchange carriers shall provide to the Commission that information 
which the Commission requests for purposes of conducting prescription 
proceedings pursuant to this part.
    (b) Local exchange carriers subject to Sec. Sec. 61.41 through 
61.49 of this chapter are exempt from the requirements of this part with 
the following exceptions:
    (1) Except as otherwise required by Commission order, carriers 
subject to Sec. Sec. 61.41 through 61.49 of this chapter shall employ 
the rate of return value calculated for interstate access services in 
complying with any applicable rules under parts 36 and 69 that require a 
return component;
    (2) Carriers subject to Sec. Sec. 61.41 through 61.49 of this 
chapter shall be subject to Sec. 65.600(d);
    (3) Carriers subject to Sec. Sec. 61.41 through 61.49 of this 
chapter shall continue to comply with the prescribed rate of return when 
offering any services specified in Sec. 61.42(f) of this chapter unless 
the Commission otherwise directs; and
    (4) Carriers subject to Sec. Sec. 61.41 through 61.49 of this 
chapter shall comply with Commission information requests made pursuant 
to Sec. 65.1(a).

[60 FR 28543, June 1, 1995]

[[Page 446]]



                          Subpart B_Procedures



Sec. 65.100  Participation and acceptance of service designation.

    (a) All interstate exchange access carriers, their customers, and 
any member of the public may participate in rate of return proceedings 
to determine the authorized unitary interstate exchange access or 
individual interstate exchange access rates of return authorized 
pursuant to Sec. 65.102.
    (b) Participants shall state in their initial pleading in a 
prescription proceeding whether they wish to receive service of 
documents and other material filed in the proceeding. Participants that 
wish to receive service by hand on the filing dates when so required by 
this part 65 shall specify in their initial pleading in a prescription 
proceeding, as specified in Sec. 65.103 (b) and (c), an agent for 
acceptance of service by hand in the District of Columbia. The 
participant may elect in its pleading to receive service by mail or upon 
an agent at another location. When such an election is made, other 
participants need not complete service on the filing date, and requests 
for extension of time due to delays in completion of service will not be 
entertained.

[60 FR 28544, June 1, 1995]



Sec. 65.101  Initiation of unitary rate of return prescription proceedings.

    (a) Whenever the Commission determines that the monthly average 
yields on ten (10) year United States Treasury securities remain, for a 
consecutive six (6) month period, at least 150 basis points above or 
below the average of the monthly average yields in effect for the 
consecutive six (6) month period immediately prior to the effective date 
of the current prescription, the Commission shall issue a notice 
inquiring whether a rate of return prescription according to this part 
should commence. This notice shall state:
    (1) The deadlines for filing initial and reply comments regarding 
the notice;
    (2) The cost of debt, cost of preferred stock, and capital structure 
computed in accordance with Sec. Sec. 65.302, 65.303, and 65.304; and
    (3) Such other information as the Commission may deem proper.
    (b) Based on the information submitted in response to the notice 
described in Sec. 65.101(a), and on any other information specifically 
identified, the Commission may issue a notice initiating a prescription 
proceeding pursuant to this part.
    (c) The Chief, Wireline Competition Bureau, may issue the notice 
described in Sec. 65.101(a).

[60 FR 28544, June 1, 1995, as amended at 67 FR 13229, Mar. 21, 2002]



Sec. 65.102  Petitions for exclusion from unitary treatment and for individual 

treatment in determining authorized return for interstate exchange access 

service.

    (a) Exclusion from unitary treatment will be granted for a period of 
two years if the cost of capital for interstate exchange service is so 
low as to be confiscatory because it is outside the zone of 
reasonableness for the individual carrier's required rate of return for 
interstate exchange access services.
    (b) A petition for exclusion from unitary treatment and for 
individual treatment must plead with particularity the exceptional facts 
and circumstances that justify individual treatment. The showing shall 
include a demonstration that the exceptional facts and circumstances are 
not of transitory effect, such that exclusion for a period of a least 
two years is justified.
    (c) A petition for exclusion from unitary treatment and for 
individual treatment may be filed at any time. When a petition is filed 
at a time other than that specified in Sec. 65.103(b)(2), the 
petitioner must provide compelling evidence that its need for individual 
treatment is not simply the result of short-term fluctuations in the 
cost of capital or similar events.

[60 FR 28544, June 1, 1995]



Sec. 65.103  Procedures for filing rate of return submissions.

    (a) Rate of return submissions listed in Sec. 65.103 (b)(1) and (c) 
may include any relevant information, subject to the page limitations of 
Sec. 65.104. The Chief,

[[Page 447]]

Wireline Competition Bureau, may require from carriers providing 
interstate services, and from other participants submitting rate of 
return submissions, data, studies or other information that are 
reasonably calculated to lead to a full and fair record.
    (b) In proceedings to prescribe an authorized unitary rate of return 
on interstate access services, interested parties may file direct case 
submissions, responses, and rebuttals. Direct case submissions shall be 
filed within sixty (60) calendar days following the effective date of a 
Commission notice initiating a rate of return proceeding pursuant to 
Sec. 65.101(b). Rate of return submissions responsive to the direct 
case submissions shall be filed within sixty (60) calendar days after 
the deadline for filing direct case submissions. Rebuttal submissions 
shall be field within twenty-one (21) calendar days after the deadline 
for filing responsive submissions.
    (c) Petitions for exclusion from unitary treatment and for 
individual treatment may be filed on the same date as the deadline for 
filing responsive rate of return submissions. Oppositions shall be filed 
within 35 calendar days thereafter. Rebuttal submissions shall be filed 
within 21 calendar days after the deadline for filing responsive 
submissions.
    (d) An original and 4 copies of all rate of return submissions shall 
be filed with the Secretary.
    (e) The filing party shall serve a copy of each rate of return 
submission, other than an initial submission, on all participants who 
have filed a designation of service notice pursuant to Sec. 65.100(b).

[60 FR 28544, June 1, 1995, as amended at 67 FR 13229, Mar. 21, 2002]



Sec. 65.104  Page limitations for rate of return submissions.

    Rate of return submissions, including all argument, attachments, 
appendices, supplements, and supporting materials, such as testimony, 
data and documents, but excluding tables of contents and summaries of 
argument, shall be subject to the following double spaced typewritten 
page limits:
    (a) The direct case submission of any participant shall not exceed 
70 pages in length.
    (b) The responsive submission of any participant shall not exceed 70 
pages in length.
    (c) The rebuttal submission of any participant shall not exceed 50 
pages in length.
    (d) Petitions for exclusion from unitary treatment shall not exceed 
70 pages in length. Oppositions to petitions for exclusion shall not 
exceed 50 pages in length. Rebuttals shall not exceed 35 pages in 
length.

[60 FR 28544, June 1, 1995]



Sec. 65.105  Discovery.

    (a) Participants shall file with each rate of return submission 
copies of all information, including studies, financial analysts' 
reports, and any other documents relied upon by participants or their 
experts in the preparation of their submission. Information filed 
pursuant to this paragraph for which protection from disclosure is 
sought shall be filed subject to protective orders which shall be duly 
granted by the Chief, Wireline Competition Bureau, for good cause shown.
    (b) Participants may file written interrogatories and requests for 
documents directed to any rate of return submission and not otherwise 
filed pursuant to Sec. 65.105(a). The permissible scope of examination 
is that participants may be examined upon any matter, not privileged, 
that will demonstrably lead to the production of material, relevant, 
decisionally significant evidence.
    (c) Discovery requests pursuant to Sec. 65.105(b), including 
written interrogatories, shall be filed within 14 calendar days after 
the filing of the rate of return submission to which the request is 
directed. Discovery requests that are not opposed shall be complied with 
within 14 calendar days of the request date.
    (d) Oppositions to discovery requests made pursuant to Sec. 
65.105(b), including written interrogatories, shall be filed within 7 
calendar days after requests are filed. The Chief, Wireline Competition 
Bureau, shall rule upon any such opposition. Except as stayed by the 
Commission or a Court, any required

[[Page 448]]

response to a discovery request that is opposed shall be provided within 
14 calendar days after release of the ruling of the Chief, Wireline 
Competition Bureau.
    (e) An original and 4 copies of all information described in Sec. 
65.105(a) and all requests, oppositions, and responses made pursuant to 
Sec. 65.105 (a), (b) and (d) shall be filed with the Secretary.
    (f) Service of requests, oppositions, and responses made pursuant to 
Sec. 65.105 (b) and (d) shall be made upon all participants who have 
filed a designation of service notice pursuant to Sec. 65.100(b). 
Service of requests upon participants who have filed designation of 
service notices pursuant to Sec. 65.100(b) shall be made by hand on the 
filing dates thereof.

[60 FR 28544, June 1, 1995, as amended at 67 FR 13229, Mar. 21, 2002]



                       Subpart C_Exchange Carriers



Sec. 65.300  Calculations of the components and weights of the cost of 

capital.

    (a) Sections 65.301 through 65.303 specify the calculations that are 
to be performed in computing cost of debt, cost of preferred stock, and 
financial structure weights for prescription proceedings. The 
calculations shall determine, where applicable, a composite cost of 
debt, a composite cost of preferred stock, and a composite financial 
structure for all local exchange carriers with annual revenues equal to 
or above the indexed revenue threshold as defined in Sec. 32.9000. The 
calculations shall be based on data reported to the Commission in FCC 
Report 43-02. (See 47 CFR 43.21). The results of the calculations shall 
be used in the represcription proceeding to which they relate unless the 
record in that proceeding shows that their use would be unreasonable.
    (b) Excluded from cost of capital calculations made pursuant to 
Sec. 65.300 shall be those sources of financing that are not investor 
supplied, or that are otherwise subtracted from a carrier's rate base 
pursuant to Commission orders governing the calculation of net rate base 
amounts in tariff filings that are made pursuant to section 203 of the 
Communications Act of 1934, 47 U.S.C. 203, or that were treated as 
``zero cost'' sources of financing in section 450 and subpart G of this 
part 65. Specifically excluded are: accounts payable, accrued taxes, 
accrued interest, dividends payable, deferred credits and operating 
reserves, deferred taxes and deferred tax credits.

[60 FR 28545, June 1, 1995, as amended at 67 FR 5702, Feb. 6, 2002]



Sec. 65.301  Cost of equity.

    The cost of equity shall be determined in represcription proceedings 
after giving full consideration to the evidence in the record, including 
such evidence as the Commission may officially notice.

[60 FR 28545, June 1, 1995]



Sec. 65.302  Cost of debt.

    The formula for determining the cost of debt is equal to:
    [GRAPHIC] [TIFF OMITTED] TR01JN95.000
    
Where:

``Total Annual Interest Expense'' is the total interest expense for the 
          most recent two years for all local exchange carriers with 
          annual revenues equal to or above the indexed revenue 
          threshold as defined in Sec. 32.9000.
``Average Outstanding Debt'' is the average of the total debt for the 
          most recent two years for all local exchange carriers with 
          annual revenues equal to or above the indexed revenue 
          threshold as defined in Sec. 32.9000.

[60 FR 28545, June 1, 1995, as amended at 67 FR 5702, Feb. 6, 2002]



Sec. 65.303  Cost of preferred stock.

    The formula for determining the cost of preferred stock is:

[[Page 449]]

[GRAPHIC] [TIFF OMITTED] TR01JN95.001

Where:

``Total Annual Preferred Dividends'' is the total dividends on preferred 
          stock for the most recent two years for all local exchange 
          carriers with annual revenues equal to or above the indexed 
          revenue threshold as defined in Sec. 32.9000. ``Proceeds from 
          the Issuance of Preferred Stock'' is the average of the total 
          net proceeds from the issuance of preferred stock for the most 
          recent two years for all local exchange carriers with annual 
          revenues equal to or above the indexed revenue threshold as 
          defined in Sec. 32.9000.

[60 FR 28545, June 1, 1995, as amended at 67 FR 5702, Feb. 6, 2002]



Sec. 65.304  Capital structure.

    The proportion of each cost of capital component in the capital 
structure is equal to:
    Proportion in the capital structure =
    [GRAPHIC] [TIFF OMITTED] TR01JN95.002
    
Where:

``Book Value of particular component'' is the total of the book values 
          of that component for all local exchange carriers with annual 
          revenues equal to or above the indexed revenue threshold as 
          defined in Sec. 32.9000.
    ``Book Value of Debt+Book Value of Preferred Stock+Book Value of 
Equity'' is the total of the book values of all the components for all 
local exchange carriers with annual revenues equal to or above the 
indexed revenue threshold as defined in Sec. 32.9000.

The total of all proportions shall equal 1.00.

[60 FR 28545, June 1, 1995, as amended at 67 FR 5702, Feb. 6, 2002]



Sec. 65.305  Calculation of the weighted average cost of capital.

    (a) The composite weighted average cost of capital is the sum of the 
cost of debt, the cost of preferred stock, and the cost of equity, each 
weighted by its proportion in the capital structure of the telephone 
companies.
    (b) Unless the Commission determines to the contrary in a 
prescription proceeding, the composite weighted average cost of debt and 
cost of preferred stock is the composite weight computed in accordance 
with Sec. 65.304 multiplied by the composite cost of the component 
computed in accordance with Sec. 65.301 or Sec. 65.302, as applicable. 
The composite weighted average cost of equity will be determined in each 
prescription proceeding.

[60 FR 28546, June 1, 1995]



Sec. 65.306  Calculation accuracy.

    In a prescription proceeding, the final determinations of the cost 
of equity, cost of debt, cost of preferred stock and their capital 
structure weights shall be accurate to two decimal places.

[60 FR 28546, June 1, 1995]



Sec. 65.450  Net income.

    (a) Net income shall consist of all revenues derived from the 
provision of interstate telecommunications services regulated by this 
Commission less expenses recognized by the Commission as necessary to 
the provision of these services. The calculation of expenses entering 
into the determination of net income shall include the interstate 
portion of plant specific operations (Accounts 6110-6441), plant 
nonspecific operations (Accounts 6510-6565), customer operations 
(Accounts 6610-6623), corporate operations (Accounts 6720-6790), other 
operating income and expense (Account 7100), and operating taxes 
(Accounts 7200-7250), except to the extent this Commission specifically 
provides to the contrary.

[[Page 450]]

    (b) Gains and losses related to the disposition of plant in service 
items, shall be handled as follows:
    (1) Gains related to property sold to others and leased back under 
capital leases for use in telecommunications services shall be recorded 
in Account 4300, Other long-term liabilities and deferred credits, and 
credited to Account 6563, Amortization expense--tangible, over the 
amortization period established for the capital lease;
    (2) Gains or losses related to the disposition of land and other 
nondepreciable items recorded in Account 7100 (Other operating income 
and expense) shall be included in net income for ratemaking purposes, 
but adjusted to reflect the relative amount of time such property was 
used in regulated operations and included in the rate base; and
    (3) Proceeds related to the disposition of property depreciated on a 
group basis and used jointly in regulated and nonregulated activities, 
including sale-leaseback arrangements for property depreciated on a 
group basis, shall be credited to the related reserves and attributed to 
regulated and nonregulated in proportion to the accumulated regulated 
and nonregulated depreciation for that group.
    (c) Gains or losses related to the disposition of property that was 
never included in the rate base shall not be considered for ratemaking 
purposes.
    (d) Except for the allowance for funds used during construction, 
reasonable charitable deductions and interest related to customer 
deposits, the amounts recorded as nonoperating income and expenses and 
taxes (Accounts 7300 and 7400) and interest and related items (Account 
7500) and extraordinary items (Account 7600) shall not be included 
unless this Commission specifically determines that particular items 
recorded in those accounts shall be included.

[53 FR 1029, Jan. 15, 1988, as amended at 60 FR 12139, Mar. 6, 1995; 67 
FR 5702, Feb. 6, 2002; 69 FR 53652, Sept. 2, 2004]



                    Subpart D_Interexchange Carriers



Sec. 65.500  Net income.

    The net income methodology specified in Sec. 65.450 shall be 
utilized by all interexchange carriers that are so designated by 
Commission order.

[60 FR 28546, June 1, 1995]



                    Subpart E_Rate of Return Reports



Sec. 65.600  Rate of return reports.

    (a) Subpart E shall apply to those interstate communications common 
carriers and exchange carriers that are so designated by Commission 
order.
    (b) Each local exchange carrier or group of affiliated carriers 
which is not subject to Sec. Sec. 61.41 through 61.49 of this chapter 
and which has filed individual access tariffs during the preceding 
enforcement period shall file with the Commission within three (3) 
months after the end of each calendar year, an annual rate of return 
monitoring report which shall be the enforcement period report. Reports 
shall be filed on the appropriate report form prescribed by the 
Commission (see Sec. 1.795 of this chapter) and shall provide full and 
specific answers to all questions propounded and information requested 
in the currently effective report form. The number of copies to be filed 
shall be specified in the applicable report form. At least one copy of 
the report shall be signed on the signature page by the responsible 
officer. A copy of each report shall be retained in the principal office 
of the respondent and shall be filed in such a manner as to be readily 
available for reference and inspection. Final adjustments to the 
enforcement period report shall be made by September 30 of the year 
following the enforcement period to ensure that any refunds can be 
properly reflected in an annual access filing.
    (c) Each interexchange carrier subject to Sec. Sec. 61.41 through 
61.49 shall file with the Commission, within three (3) months after the 
end of each calendar year, the total interstate rate of return for that 
year for all interstate services subject to regulation by the 
Commission. Each such filing shall include a

[[Page 451]]

report of the total revenues, total expenses and taxes, operating 
income, and the rate base. A copy of the filing shall be retained in the 
principal office of the respondent and shall be filed in such manner as 
to be readily available for reference and inspection.
    (d)(1) Each local exchange carrier or group of affiliated carriers 
subject to Sec. Sec. 61.41 through 61.49 of this chapter shall file 
with the Commission within three (3) months after the end of each 
calendar year a report of its total interstate rate of return for that 
year. Such filings shall include a report of the total revenues, total 
expenses and taxes, operating income, and the rate base. Reports shall 
be filed on the appropriate form prescribed by the Commission (see Sec. 
1.795 of this chapter) and shall provide full and specific answers to 
all questions propounded and information requested in the currently 
effective form. The number of copies to be filed shall be specified in 
the applicable report form. At least one copy of the report shall be 
retained in the principal office of the respondent and shall be filed in 
such manner as to be readily available for reference and inspection.
    (2) Each local exchange carrier or group of affiliated carriers 
subject to Sec. Sec. 61.41 through 61.49 of this chapter shall file 
with the Commission within fifteen (15) months after the end of each 
calendar year a report reflecting any corrections or modifications to 
the report filed pursuant to paragraph (d)(1) of this section. Reports 
shall be filed on the appropriate form prescribed by the Commission (see 
Sec. 1.795 of this chapter) and shall provide full and specific answers 
to all questions propounded and information requested in the currently 
effective form. The number of copies to be filed shall be specified in 
the applicable report form. At least one copy of the report shall be 
retained in the principal office of the respondent and shall be filed in 
such manner as to be readily available for reference and inspection.

[52 FR 274, Jan. 5, 1987, as amended at 54 FR 19844, May 8, 1989; 55 FR 
42385, Oct. 19, 1990; 56 FR 21617, May 10, 1991; 62 FR 5166, Feb. 4, 
1997]



               Subpart F_Maximum Allowable Rates of Return



Sec. 65.700  Determining the maximum allowable rate of return.

    (a) The maximum allowable rate of return for any exchange carrier's 
earnings on any access service category shall be determined by adding a 
fixed increment of four-tenths of one percent of the exchange carrier 
prescribed rate of return.
    (b) The maximum allowable rate of return for any exchange carrier's 
overall interstate earnings for all access service categories shall be 
determined by adding a fixed increment of one-quarter of one percent to 
the exchange carrier prescribed rate of return.
    (c) The maximum allowable rate of return for rates filed by local 
exchange carrier subject to Sec. 61.50 of this chapter, shall be 
determined by adding a fixed increment of one and one-half percent to 
the carriers prescribed rate of return.

[51 FR 11034, Apr. 1, 1986, as amended at 58 FR 36149, July 6, 1993; 60 
FR 28546, June 1, 1995]



Sec. 65.701  Period of review.

    For both exchange and interexchange carriers subject to this part, 
interstate earnings shall be measured over a two year period to 
determine compliance with the maximum allowable rate of return. The 
review periods shall commence on January 1 in odd-numbered years and 
shall end on December 31 in even-numbered years.

[60 FR 28546, June 1, 1995]



Sec. 65.702  Measurement of interstate service earnings.

    (a) For exchange carriers, earnings shall be measured separately for 
each access service category for purposes of determining compliance with 
the maximum allowable rate of return. The access service categories 
shall be: an aggregated category consisting of Special Access, Sec. 
69.113, and Contribution Charges for Special Access Expanded 
Interconnection, Sec. 69.122; Connection Charges for Expanded 
Interconnection, Sec. 69.121; Common Line, Sec. Sec. 69.104-69.105; 
and an aggregated category consisting of Line Termination, Sec. 69.106, 
Intercept,

[[Page 452]]

Sec. 69.108, Local Switching, Sec. 69.107, Transport, Sec. Sec. 
69.110-69.112, 69.124, 69.125, and Information, Sec. 69.109. The 
Billing and Collection access element shall not be included in any 
access service category for purposes of this part. The Commission will 
also separately review exchange carrier overall interstate earnings 
subject to this part for determining compliance with the maximum 
allowable rate of return determined by Sec. 65.700(b).
    (b) For exchange carriers, earnings shall be measured for purposes 
of determining compliance with the maximum allowable rates of return 
separately for each study area; provided, however, that if the carrier 
has filed or concurred in access tariffs aggregating costs and rates for 
two or more study areas, the earnings will be determined for the 
aggregated study areas rather than for each study area separately. If an 
exchange carrier has not utilized the same level of study area 
aggregation during the entire two-year earnings review period, then the 
carrier's earnings will be measured for the entire two-year period on 
the basis of the tariffs in effect at the end of the second year of the 
two-year review period; provided, however, that if tariffs representing 
a higher level of study area aggregation were not in effect for at least 
eight months in the second year, then the carrier's earnings will be 
measured on the basis of the study area level of aggregation in effect 
for the majority of the two-year period; provided further, that any 
carrier that was not a member of the National Exchange Carrier 
Association or other voluntary pools for both years of the two-year 
review period will have its earnings reviewed individually for the full 
two-year period.

[51 FR 11034, Apr. 1, 1986, as amended at 57 FR 54719, Nov. 20, 1992; 58 
FR 48763, Sept. 17, 1993; 60 FR 28546, June 1, 1995]



                           Subpart G_Rate Base

    Source: 53 FR 1029, Jan. 15, 1988, unless otherwise noted.



Sec. 65.800  Rate base.

    The rate base shall consist of the interstate portion of the 
accounts listed in Sec. 65.820 that has been invested in plant used and 
useful in the efficient provision of interstate telecommunications 
services regulated by this Commission, minus any deducted items computed 
in accordance with Sec. 65.830.



Sec. 65.810  Definitions.

    As used in this subpart ``account xxxx'' means the account of that 
number kept in accordance with the Uniform System of Accounts for Class 
A and Class B Telecommunications Companies in 47 CFR part 32.



Sec. 65.820  Included items.

    (a) Telecommunications plant. The interstate portion of all assets 
summarized in Account 2001 (Telecommunications Plant in Service) and 
Account 2002 (Property Held for Future Use), net of accumulated 
depreciation and amortization, and Account 2003 (Telecommunications 
Plant Under Construction), and, to the extent such inclusions are 
allowed by this Commission, Account 2005 (Telecommunications Plant 
Adjustment). Any interest cost for funds used during construction 
capitalized on assets recorded in these accounts shall be computed in 
accordance with the procedures in Sec. 32.2000(c)(2)(x) of this chapter.
    (b) Material and supplies. The interstate portion of assets 
summarized in Account 1220.1 (Material and Supplies).
    (c) Noncurrent assets. The interstate portion of Class B Rural 
Telephone Bank stock contained in Account 1410 and the interstate 
portion of assets summarized in Account 1410 (Other Noncurrent Assets) 
and Account 1438 (Deferred Maintenance, Retirements and Deferred 
Charges), only to the extent that they have been specifically approved 
by this Commission for inclusion (Note: The interstate portion of assets 
summarized in Account 1410 should not include any amounts related to 
investments, sinking funds or unamortized debt issuance expense). Except 
as noted above, no amounts from accounts 1406 through 1500 shall be 
included.
    (d) Cash working capital. The average amount of investor-supplied 
capital needed to provide funds for a carrier's day-to-day interstate 
operations. Class

[[Page 453]]

A carriers may calculate a cash working capital allowance either by 
performing a lead-lag study of interstate revenue and expense items or 
by using the formula set forth in paragraph (e) of this section. Class B 
carriers, in lieu of performing a lead-lag study or using the formula in 
paragraph (e) of this section, may calculate the cash working capital 
allowance using a standard allowance which will be established annually 
by the Chief, Wireline Competition Bureau. When either the lead-lag 
study or formula method is used to calculate cash working capital, the 
amount calculated under the study or formula may be increased by minimum 
bank balances and working cash advances to determine the cash working 
capital allowance. Once a carrier has selected a method of determining 
its cash working capital allowance, it shall not change to an optional 
method from one year to the next without Commission approval.
    (e) In lieu of a full lead-lag study, carriers may calculate the 
cash working capital allowance using the following formula.
    (1) Compute the weighted average revenue lag days as follows:
    (i) Multiply the average revenue lag days for interstate revenues 
billed in arrears by the percentage of interstate revenues billed in 
arrears.
    (ii) Multiply the average revenue lag days for interstate revenues 
billed in advance by the percentage of interstate revenues billed in 
advance. (Note: a revenue lead should be shown as a negative lag.)
    (iii) Add the results of paragraphs (e)(1) (i) and (ii) of this 
section to determine the weighted average revenue lag days.
    (2) Compute the weighted average expense lag days as follows:
    (i) Multiply the average lag days for interstate expenses (i.e., 
cash operating expenses plus interest) paid in arrears by the percentage 
of interstate expenses paid in arrears.
    (ii) Multiply the average lag days for interstate expenses paid in 
advance by the percentage of interstate expenses paid in advance. (Note: 
an expense lead should be shown as a negative lag.)
    (iii) Add the results of paragraphs (e)(2) (i) and (ii) of this 
section to determine the weighted average expense lag days.
    (3) Compute the weighted net lag days by deducting the weighted 
average expense lag days from the weighted average revenue lag days.
    (4) Compute the percentage of a year represented by the weighted net 
lag days by dividing the days computed in paragraph (e)(3) of this 
section by 365 days.
    (5) Compute the cash working capital allowance by multiplying the 
interstate cash operating expenses (i.e., operating expenses minus 
depreciation and amortization) plus interest by the percentage computed 
in paragraph (e)(4) of this section.

[54 FR 9048, Mar. 3, 1989, as amended at 60 FR 12139, Mar. 6, 1995; 67 
FR 5703, Feb. 6, 2002; 67 FR 13229, Mar. 21, 2002]



Sec. 65.830  Deducted items.

    (a) The following items shall be deducted from the interstate rate 
base.
    (1) The interstate portion of deferred taxes (Accounts 4100 and 
4340).
    (2) The interstate portion of customer deposits (Account 4040).
    (3) The interstate portion of other long-term liabilities in 
(Account 4300 Other long-term liabilities and deferred credits) that 
were derived from the expenses specified in Sec. 65.450(a).
    (4) The interstate portion of other deferred credits in (Account 
4300 Other long-term liabilities and deferred credits) to the extent 
they arise from the provision of regulated telecommunications services. 
This shall include deferred gains related to sale-leaseback 
arrangements.
    (b) The interstate portion of deferred taxes, customer deposits and 
other deferred credits shall be determined as prescribed by 47 CFR part 
36.
    (c) The interstate portion of other long-term liabilities included 
in (Account 4300 Other long-term liabilities and deferred credits) shall 
bear the same proportionate relationships as the interstate/intrastate 
expenses which gave rise to the liability.

[54 FR 9049, Mar. 3, 1989, as amended at 62 FR 15118, Mar. 31, 1997; 67 
FR 5703, Feb. 6, 2002]

[[Page 454]]



PART 68_CONNECTION OF TERMINAL EQUIPMENT TO THE TELEPHONE NETWORK--Table of 

Contents



                            Subpart A_General

Sec.
68.1 Purpose.
68.2 Scope.
68.3 Definitions.
68.4 Hearing aid-compatible telephones.
68.5 Waivers.
68.6 Telephones with volume control.
68.7 Technical criteria for terminal equipment.

            Subpart B_Conditions on Use of Terminal Equipment

68.100 General.
68.102 Terminal equipment approval requirement.
68.105 Minimum point of entry (MPOE) and demarcation point.
68.106 Notification to provider of wireline telecommunications.
68.108 Incidence of harm.
68.110 Compatibility of the public switched telephone network and 
          terminal equipment.
68.112 Hearing aid-compatibility.
68.160 Designation of Telecommunication Certification Bodies (TCBs).
68.162 Requirements for Telecommunication Certification Bodies.

            Subpart C_Terminal Equipment Approval Procedures

68.201 Connection to the public switched telephone network.
68.211 Terminal equipment approval revocation procedures.
68.213 Installation of other than ``fully protected'' non-system simple 
          customer premises wiring.
68.214 Changes in other than ``fully protected'' premises wiring that 
          serves fewer than four subscriber access lines.
68.215 Installation of other than ``fully-protected'' system premises 
          wiring that serves more than four subscriber access lines.
68.218 Responsibility of the party acquiring equipment authorization.
68.224 Notice of non-hearing aid compatibility.

          Subpart D_Conditions for Terminal Equipment Approval

68.300 Labeling requirements.
68.316 Hearing aid compatibility: Technical requirements.
68.317 Hearing aid compatibility volume control: technical standards.
68.318 Additional limitations.
68.320 Supplier's Declaration of Conformity.
68.321 Location of responsible party.
68.322 Changes in name, address, ownership or control of responsible 
          party.
68.324 Supplier's Declaration of Conformity requirements.
68.326 Retention of records.
68.346 Description of testing facilities.
68.348 Changes in equipment and circuitry subject to a Supplier's 
          Declaration of Conformity.
68.350 Revocation of Supplier's Declaration of Conformity.
68.354 Numbering and labeling requirements for terminal equipment.

                     Subpart E_Complaint Procedures

68.400-68.412 [Reserved]
68.414 Hearing aid-compatibility: Enforcement.
68.415 Hearing aid-compatibility and volume control informal complaints.
68.417 Informal complaints; form and content.
68.418 Procedure; designation of agents for service.
68.419 Answers to informal complaints.
68.420 Review and disposition of informal complaints.
68.423 Actions by the Commission on its own motion.

Subpart F [Reserved]

        Subpart G_Administrative Council for Terminal Attachments

68.602 Sponsor of the Administrative Council for Terminal Attachments.
68.604 Requirements for submitting technical criteria.
68.608 Publication of technical criteria.
68.610 Database of terminal equipment.
68.612 Labels on terminal equipment.
68.614 Oppositions and appeals.

    Authority: 47 U.S.C. 154, 303.



                            Subpart A_General

    Authority: Secs. 4, 5, 303, 48 Stat., as amended, 1066, 1068, 1082; 
(47 U.S.C. 154, 155, 303).

    Source: 45 FR 20841, Mar. 31, 1980, unless otherwise noted.



Sec. 68.1  Purpose.

    The purpose of the rules and regulations in this part is to provide 
for uniform standards for the protection of the telephone network from 
harms caused by the connection of terminal

[[Page 455]]

equipment and associated wiring thereto, and for the compatibility of 
hearing aids and telephones so as to ensure that persons with hearing 
aids have reasonable access to the telephone network.

(47 U.S.C. 151, 154(i), 154(j), 201-205, 218, 220, 313, 403, 412, and 5 
U.S.C. 553)

[49 FR 21733, May 23, 1984]



Sec. 68.2  Scope.

    (a) Except as provided in paragraphs (b) and (c) of this section, 
the rules and regulations apply to direct connection of all terminal 
equipment to the public switched telephone network for use in 
conjunction with all services other than party line services.
    (b) National defense and security. Where the Secretary of Defense or 
authorized agent or the head of any other governmental department, 
agency, or administration (approved in writing by the Commission to act 
pursuant to this rule) or authorized representative, certifies in 
writing to the appropriate common carrier that compliance with the 
provisions of part 68 could result in the disclosure of communications 
equipment or security devices, locations, uses, personnel, or activity 
which would adversely affect the national defense and security, such 
equipment or security devices may be connected to the telephone company 
provided communications network without compliance with this part, 
provided that each written certification states that:
    (1) The connection is required in the interest of national defense 
and security;
    (2) The equipment or device to be connected either complies with the 
technical criteria pertaining thereto or will not cause harm to the 
nationwide telephone network or to employees of any provider of wireline 
telecommunications; and
    (3) The installation is performed by well-trained, qualified 
employees under the responsible supervision and control of a person who 
is a licensed professional engineer in the jurisdiction in which the 
installation is performed.
    (c) Governmental departments, agencies, or administrations that wish 
to qualify for interconnection of equipment or security devices pursuant 
to this section shall file a request with the Secretary of this 
Commission stating the reasons why the exemption is requested. A list of 
these departments, agencies, or administrations that have filed requests 
shall be published in the Federal Register. The Commission may take 
action with respect to those requests 30 days after publication. The 
Commission action shall be published in the Federal Register. However, 
the Commission may grant, on less than the normal notice period or 
without notice, special temporary authority, not to exceed 90 days, for 
governmental departments, agencies, or administrations that wish to 
qualify for interconnection of equipment or security devices pursuant to 
this section. Requests for such authority shall state the particular 
fact and circumstances why authority should be granted on less than the 
normal notice period or without notice. In such cases, the Commission 
shall endeavor to publish its disposition as promptly as possible in the 
Federal Register.

[66 FR 7580, Jan. 24, 2001]



Sec. 68.3  Definitions.

    As used in this part:
    Demarcation point (also point of interconnection). As used in this 
part, the point of demarcation and/or interconnection between the 
communications facilities of a provider of wireline telecommunications, 
and terminal equipment, protective apparatus or wiring at a subscriber's 
premises.
    Essential telephones. Only coin-operated telephones, telephones 
provided for emergency use, and other telephones frequently needed for 
use by persons using such hearing aids.
    Harm. Electrical hazards to the personnel of providers of wireline 
telecommunications, damage to the equipment of providers of wireline 
telecommunications, malfunction of the billing equipment of providers of 
wireline telecommunications, and degradation of service to persons other 
than the user of the subject terminal equipment, his calling or called 
party.
    Hearing aid compatible. Except as used at Sec. Sec. 68.4(a)(3) and 
68.414, the terms hearing aid compatible or hearing aid compatibility 
are used as defined in

[[Page 456]]

Sec. 68.316, unless it is specifically stated that hearing aid 
compatibility volume control, as defined in Sec. 68.317, is intended or 
is included in the definition.
    Inside wiring or premises wiring. Customer-owned or controlled wire 
on the subscriber's side of the demarcation point.
    Premises. As used herein, generally a dwelling unit, other building 
or a legal unit of real property such as a lot on which a dwelling unit 
is located, as determined by the provider of telecommunications 
service's reasonable and nondiscriminatory standard operating practices.
    Private radio services. Private land mobile radio services and other 
communications services characterized by the Commission in its rules as 
private radio services.
    Public mobile services. Air-to-ground radiotelephone services, 
cellular radio telecommunications services, offshore radio, rural radio 
service, public land mobile telephone service, and other common carrier 
radio communications services covered by part 22 of Title 47 of the Code 
of Federal Regulations.
    Responsible party. The party or parties responsible for the 
compliance of terminal equipment or protective circuitry intended for 
connection directly to the public switched telephone network with the 
applicable rules and regulations in this part and with the technical 
criteria published by the Administrative Council for Terminal 
Attachments. If a Telecommunications Certification Body certifies the 
terminal equipment, the responsible party is the holder of the 
certificate for that equipment. If the terminal equipment is the subject 
of a Supplier's Declaration of Conformity, the responsible party shall 
be: the manufacturer of the terminal equipment, or the manufacturer of 
protective circuitry that is marketed for use with terminal equipment 
that is not to be connected directly to the network, or if the equipment 
is imported, the importer, or if the terminal equipment is assembled 
from individual component parts, the assembler. If the equipment is 
modified by any party not working under the authority of the responsible 
party, the party performing the modifications, if located within the 
U.S., or the importer, if the equipment is imported subsequent to the 
modifications, becomes the new responsible party. Retailers or original 
equipment manufacturers may enter into an agreement with the assembler 
or importer to assume the responsibilities to ensure compliance of the 
terminal equipment and to become the responsible party.
    Secure telephones. Telephones that are approved by the United States 
Government for the transmission of classified or sensitive voice 
communications.
    Terminal equipment. As used in this part, communications equipment 
located on customer premises at the end of a communications link, used 
to permit the stations involved to accomplish the provision of 
telecommunications or information services.

[66 FR 7581, Jan. 24, 2001]



Sec. 68.4  Hearing aid-compatible telephones.

    (a)(1) Except for telephones used with public mobile services, 
telephones used with private radio services, and cordless and secure 
telephones, every telephone manufactured in the United States (other 
than for export) or imported for use in the United States after August 
16, 1989, must be hearing aid compatible, as defined in Sec. 68.316. 
Every cordless telephone manufactured in the United States (other than 
for export) or imported into the United States after August 16, 1991, 
must be hearing aid compatible, as defined in Sec. 68.316.
    (2) Unless otherwise stated and except for telephones used with 
public mobile services, telephones used with private radio services and 
secure telephones, every telephone listed in Sec. 68.112 must be 
hearing aid compatible, as defined in Sec. 68.316.
    (3) A telephone is hearing aid-compatible if it provides internal 
means for effective use with hearing aids that are designed to be 
compatible with telephones which meet established technical standards 
for hearing aid compatibility.
    (4) The Commission shall revoke or otherwise limit the exemptions of 
paragraph (a)((1) of this section for telephones used with public mobile 
services or telephones used with private radio services if it determines

[[Page 457]]

that (i) such revocation or limitation is in the public interest; (ii) 
continuation of the exemption without such revocation or limitation 
would have an adverse effect on hearing-impaired individuals; (iii) 
compliance with the requirements of Sec. 68.4(a)(1) is technologically 
feasible for the telephones to which the exemption applies; and (iv) 
compliance with the requirements of Sec. 68.4(a)(1) would not increase 
costs to such an extent that the telephones to which the exemption 
applies could not be successfully marketed.

[54 FR 21430, May 18, 1989, as amended at 55 FR 28763, July 13, 1990; 57 
FR 27183, June 18, 1992; 61 FR 42186, Aug. 14, 1996]



Sec. 68.5  Waivers.

    The Commission may, upon the application of any interested person, 
initiate a proceeding to waive the requirements of Sec. 68.4(a)(1) with 
respect to new telephones, or telephones associated with a new 
technology or service. The Commission shall not grant such a waiver 
unless it determines, on the basis of evidence in the record of such 
proceeding, that such telephones, or such technology or service, are in 
the public interest, and that (a) compliance with the requirements of 
Sec. 68.4(a)(1) is technologically infeasible, or (b) compliance with 
such requirements would increase the costs of the telephones, or of the 
technology or service, to such an extent that such telephones, 
technology, or service could not be successfully marketed. In any 
proceeding under this section to grant a waiver from the requirements of 
Sec. 68.4(a)(1), the Commission shall consider the effect on hearing-
impaired individuals of granting the waiver. The Commission shall 
periodically review and determine the continuing need for any waiver 
granted pursuant to this section.

[54 FR 21430, May 18, 1989]



Sec. 68.6  Telephones with volume control.

    As of January 1, 2000, all telephones, including cordless 
telephones, as defined in Sec. 15.3(j) of this chapter, manufactured in 
the United States (other than for export) or imported for use in the 
United States, must have volume control in accordance with Sec. 68.317. 
Secure telephones, as defined by Sec. 68.3 are exempt from this 
section, as are telephones used with public mobile services or private 
radio services.

[62 FR 43484, Aug. 14, 1997]



Sec. 68.7  Technical criteria for terminal equipment.

    (a) Terminal equipment shall not cause harm, as defined in Sec. 
68.3, to the public switched telephone network.
    (b) Technical criteria published by the Administrative Council for 
Terminal Attachments are the presumptively valid technical criteria for 
the protection of the public switched telephone network from harms 
caused by the connection of terminal equipment, subject to the appeal 
procedures in Sec. 68.614 of this part.

[66 FR 7581, Jan. 24, 2001]



            Subpart B_Conditions on Use of Terminal Equipment



Sec. 68.100  General.

    In accordance with the rules and regulations in this part, terminal 
equipment may be directly connected to the public switched telephone 
network, including private line services provided over wireline 
facilities that are owned by providers of wireline telecommunications.

[66 FR 7581, Jan. 24, 2001]



Sec. 68.102  Terminal equipment approval requirement.

    Terminal equipment must be approved in accordance with the rules and 
regulations in subpart C of this part, or connected through protective 
circuitry that is approved in accordance with the rules and regulations 
in subpart C.

[66 FR 7582, Jan. 24, 2001]



Sec. 68.105  Minimum point of entry (MPOE) and demarcation point.

    (a) Facilities at the demarcation point. Carrier-installed 
facilities at, or constituting, the demarcation point shall consist of 
wire or a jack conforming to the technical criteria published by the 
Administrative Council for Terminal Attachments.

[[Page 458]]

    (b) Minimum point of entry. The ``minimum point of entry'' (MPOE) as 
used herein shall be either the closest practicable point to where the 
wiring crosses a property line or the closest practicable point to where 
the wiring enters a multiunit building or buildings. The reasonable and 
nondiscriminatory standard operating practices of the provider of 
wireline telecommunications services shall determine which shall apply. 
The provider of wireline telecommunications services is not precluded 
from establishing reasonable classifications of multiunit premises for 
purposes of determining which shall apply. Multiunit premises include, 
but are not limited to, residential, commercial, shopping center and 
campus situations.
    (c) Single unit installations. For single unit installations 
existing as of August 13, 1990, and installations installed after that 
date the demarcation point shall be a point within 30 cm (12 in) of the 
protector or, where there is no protector, within 30 cm (12 in) of where 
the telephone wire enters the customer's premises, or as close thereto 
as practicable.
    (d) Multiunit installations. (1) In multiunit premises existing as 
of August 13, 1990, the demarcation point shall be determined in 
accordance with the local carrier's reasonable and non-discriminatory 
standard operating practices. Provided, however, that where there are 
multiple demarcation points within the multiunit premises, a demarcation 
point for a customer shall not be further inside the customer's premises 
than a point twelve inches from where the wiring enters the customer's 
premises, or as close thereto as practicable.
    (2) In multiunit premises in which wiring is installed, including 
major additions or rearrangements of wiring existing prior to that date, 
the provider of wireline telecommunications may place the demarcation 
point at the minimum point of entry (MPOE). If the provider of wireline 
telecommunications services does not elect to establish a practice of 
placing the demarcation point at the minimum point of entry, the 
multiunit premises owner shall determine the location of the demarcation 
point or points. The multiunit premises owner shall determine whether 
there shall be a single demarcation point location for all customers or 
separate such locations for each customer. Provided, however, that where 
there are multiple demarcation points within the multiunit premises, a 
demarcation point for a customer shall not be further inside the 
customer's premises than a point 30 cm (12 in) from where the wiring 
enters the customer's premises, or as close thereto as practicable. At 
the time of installation, the provider of wireline telecommunications 
services shall fully inform the premises owner of its options and rights 
regarding the placement of the demarcation point or points and shall not 
attempt to unduly influence that decision for the purpose of obstructing 
competitive entry.
    (3) In any multiunit premises where the demarcation point is not 
already at the MPOE, the provider of wireline telecommunications 
services must comply with a request from the premises owner to relocate 
the demarcation point to the MPOE. The provider of wireline 
telecommunications services must negotiate terms in good faith and 
complete the negotiations within forty-five days from said request. 
Premises owners may file complaints with the Commission for resolution 
of allegations of bad faith bargaining by provider of wireline 
telecommunications services. See 47 U.S.C. 208; 47 CFR 1.720 through 
1.736 (1999).
    (4) The provider of wireline telecommunications services shall make 
available information on the location of the demarcation point within 
ten business days of a request from the premises owner. If the provider 
of wireline telecommunications services does not provide the information 
within that time, the premises owner may presume the demarcation point 
to be at the MPOE. Notwithstanding the provisions of Sec. 68.110(c) of 
this part, provider of wireline telecommunications services must make 
this information freely available to the requesting premises owner.
    (5) In multiunit premises with more than one customer, the premises 
owner may adopt a policy restricting a customer's access to wiring on 
the premises to only that wiring located in the

[[Page 459]]

customer's individual unit that serves only that particular customer.

[66 FR 7582, Jan. 24, 2001; 67 FR 60167, Sept. 25, 2002]



Sec. 68.106  Notification to provider of wireline telecommunications.

    (a) General. Customers connecting terminal equipment or protective 
circuitry to the public switched telephone network shall, upon request 
of the provider of wireline telecommunications, inform the provider of 
wireline telecommunications of the particular line(s) to which such 
connection is made, and any other information required to be placed on 
the terminal equipment pursuant to Sec. 68.354 of this part by the 
Administrative Council for Terminal Attachments.
    (b) Systems assembled of combinations of individually-approved 
terminal equipment and protective circuitry. Customers connecting such 
assemblages to the public switched telephone network shall, upon the 
request of the provider of wireline telecommunications, provide to the 
provider of wireline telecommunications the following information:
    For each line:
    (1) Information required for compatible operation of the equipment 
with the communications facilities of the provider of wireline 
telecommunications;
    (2) The identifying information required to be placed on terminal 
equipment pursuant to Sec. 68.354 for all equipment dedicated to that 
line; and
    (3) Any other information regarding equipment dedicated to that line 
required to be placed on the terminal equipment by the Administrative 
Council for Terminal Attachments.
    (4) A list of identifying numbers required to be placed on terminal 
equipment, if any, by the Administrative Council for Terminal 
Attachments, pursuant to Sec. 68.354 of this part, for equipment to be 
used in the system.
    (c) Systems using other than ``fully protected'' premises wiring. 
Customers who intend to connect premises wiring other than ``fully 
protected'' premises wiring to the public switched telephone network 
shall, in addition to the foregoing, give notice to the provider of 
wireline telecommunications in accordance with Sec. 68.215(e).

[66 FR 7582, Jan. 24, 2001]



Sec. 68.108  Incidence of harm.

    Should terminal equipment, inside wiring, plugs and jacks, or 
protective circuitry cause harm to the public switched telephone 
network, or should the provider of wireline telecommunications 
reasonably determine that such harm is imminent, the provider of 
wireline telecommunications shall, where practicable, notify the 
customer that temporary discontinuance of service may be required; 
however, wherever prior notice is not practicable, the provider of 
wireline telecommunications may temporarily discontinue service 
forthwith, if such action is reasonable under the circumstances. In case 
of such temporary discontinuance, the provider of wireline 
telecommunications shall:
    (a) Promptly notify the customer of such temporary discontinuance;
    (b) Afford the customer the opportunity to correct the situation 
which gave rise to the temporary discontinuance; and
    (c) Inform the customer of his right to bring a complaint to the 
Commission pursuant to the procedures set forth in subpart E of this 
part.

[55 FR 28630, July 12, 1990, as amended at 66 FR 7583, Jan. 24, 2001]



Sec. 68.110  Compatibility of the public switched telephone network and 

terminal equipment.

    (a) Availability of interface information. Technical information 
concerning interface parameters not specified by the technical criteria 
published by the Administrative Council for Terminal Attachments, that 
are needed to permit terminal equipment to operate in a manner 
compatible with the communications facilities of a provider of wireline 
telecommunications, shall be provided by the provider of wireline 
telecommunications upon request.
    (b) Changes in the facilities, equipment, operations, or procedures 
of a provider of wireline telecommunications. A provider of wireline 
telecommunications may make changes in its communications facilities, 
equipment, operations or

[[Page 460]]

procedures, where such action is reasonably required in the operation of 
its business and is not inconsistent with the rules and regulations in 
this part. If such changes can be reasonably expected to render any 
customer's terminal equipment incompatible with the communications 
facilities of the provider of wireline telecommunications, or require 
modification or alteration of such terminal equipment, or otherwise 
materially affect its use or performance, the customer shall be given 
adequate notice in writing, to allow the customer an opportunity to 
maintain uninterrupted service.
    (c) Availability of inside wiring information. Any available 
technical information concerning wiring on the customer side of the 
demarcation point, including copies of existing schematic diagrams and 
service records, shall be provided by the provider of wireline 
telecommunications upon request of the building owner or agent thereof. 
The provider of wireline telecommunications may charge the building 
owner a reasonable fee for this service, which shall not exceed the cost 
involved in locating and copying the documents. In the alternative, the 
provider of wireline telecommunications may make these documents 
available for review and copying by the building owner. In this case, 
the provider of wireline telecommunications may charge a reasonable fee, 
which shall not exceed the cost involved in making the documents 
available, and may also require the building owner to pay a deposit to 
guarantee the documents' return.

[66 FR 7583, Jan. 24, 2001]



Sec. 68.112  Hearing aid-compatibility.

    (a) Coin telephones. All new and existing coin-operated telephones, 
whether located on public property or in a semi-public location (e.g., 
drugstore, gas station, private club).
    (b) Emergency use telephones. Telephones ``provided for emergency 
use'' include the following:
    (1) Telephones, except headsets, in places where a person with a 
hearing disability might be isolated in an emergency, including, but not 
limited to, elevators, highways, and tunnels for automobile, railway or 
subway, and workplace common areas.

    Note to paragraph (b)(1): Examples of workplace common areas include 
libraries, reception areas and similar locations where employees are 
reasonably expected to congregate.

    (2) Telephones specifically installed to alert emergency 
authorities, including, but not limited to, police or fire departments 
or medical assistance personnel.
    (3) Telephones, except headsets, in workplace non-common areas. 
Note: Examples of workplace non-common areas include private enclosed 
offices, open area individual work stations and mail rooms. Such non-
common area telephones are required to be hearing aid compatible, as 
defined in Sec. 68.316, by January 1, 2000, except for those telephones 
located in establishments with fewer than fifteen employees; and those 
telephones purchased between January 1, 1985 through December 31, 1989, 
which are not required to be hearing aid compatible, as defined in Sec. 
68.316, until January 1, 2005.
    (i) Telephones, including headsets, made available to an employee 
with a hearing disability for use by that employee in his or her 
employment duty, shall, however, be hearing aid compatible, as defined 
in Sec. 68.316.
    (ii) As of January 1, 2000 or January 1, 2005, whichever date is 
applicable, there shall be a rebuttable presumption that all telephones 
located in the workplace are hearing aid compatible, as defined in Sec. 
68.316. Any person who identifies a telephone as non-hearing aid-
compatible, as defined in Sec. 68.316, may rebut this presumption. Such 
telephone must be replaced within fifteen working days with a hearing 
aid compatible telephone, as defined in Sec. 68.316, including, on or 
after January 1, 2000, with volume control, as defined in Sec. 68.317.
    (iii) Telephones, not including headsets, except those headsets 
furnished under paragraph (b)(3)(i) of this section, that are purchased, 
or replaced with newly acquired telephones, must be:
    (A) Hearing aid compatible, as defined in Sec. 68.316, after 
October 23, 1996; and

[[Page 461]]

    (B) Include volume control, as defined in Sec. 68.317, on or after 
January 1, 2000.
    (iv) When a telephone under paragraph (b)(3)(iii) of this section is 
replaced with a telephone from inventory existing before October 23, 
1996, any person may make a bona fide request that such telephone be 
hearing aid compatible, as defined in Sec. 68.316. If the replacement 
occurs on or after January 1, 2000, the telephone must have volume 
control, as defined in Sec. 68.317. The telephone shall be provided 
within fifteen working days.
    (v) During the period from October 23, 1996, until the applicable 
date of January 1, 2000 or January 1, 2005, workplaces of fifteen or 
more employees also must provide and designate telephones for emergency 
use by employees with hearing disabilities through one or more of the 
following means:
    (A) By having at least one coin-operated telephone, one common area 
telephone or one other designated hearing aid compatible telephone 
within a reasonable and accessible distance for an individual searching 
for a telephone from any point in the workplace; or
    (B) By providing wireless telephones that meet the definition for 
hearing aid compatible for wireline telephones, as defined in Sec. 
68.316, for use by employees in their employment duty outside common 
areas and outside the offices of employees with hearing disabilities.
    (4) All credit card operated telephones, whether located on public 
property or in a semipublic location (e.g., drugstore, gas station, 
private club), unless a hearing aid compatible (as defined in Sec. 
68.316) coin-operated telephone providing similar services is nearby and 
readily available. However, regardless of coin-operated telephone 
availability, all credit card operated telephones must be made hearing 
aid-compatible, as defined in Sec. 68.316, when replaced, or by May 1, 
1991, which ever comes sooner.
    (5) Telephones needed to signal life threatening or emergency 
situations in confined settings, including but not limited to, rooms in 
hospitals, residential health care facilities for senior citizens, and 
convalescent homes:
    (i) A telephone that is hearing aid compatible, as defined in Sec. 
68.316, is not required until:
    (A) November 1, 1997, for establishments with fifty or more beds, 
unless replaced before that time; and
    (B) November 1, 1998, for all other establishments with fewer than 
fifty beds, unless replaced before that time.
    (ii) Telephones that are purchased, or replaced with newly acquired 
telephones, must be:
    (A) Hearing aid compatible, as defined in Sec. 68.116, after 
October 23, 1996; and
    (B) Include volume control, as defined in Sec. 68.317, on or after 
January 1, 2000.
    (iii) Unless a telephone in a confined setting is replaced pursuant 
to paragraph (b)(5)(ii) of this section, a hearing aid compatible 
telephone shall not be required if:
    (A) A telephone is both purchased and maintained by a resident for 
use in that resident's room in the establishment; or
    (B) The confined setting has an alternative means of signalling 
life-threatening or emergency situations that is available, working and 
monitored.
    (6) Telephones in hotel and motel guest rooms, and in any other 
establishment open to the general public for the purpose of overnight 
accommodation for a fee. Such telephones are required to be hearing aid 
compatible, as defined in Sec. 68.316, except that, for establishments 
with eighty or more guest rooms, the telephones are not required to be 
hearing aid compatible, as defined in Sec. 68.316, until November 1, 
1998; and for establishments with fewer than eighty guest rooms, the 
telephones are not required to be hearing aid compatible, as defined in 
Sec. 68.316, until November 1, 1999.
    (i) Anytime after October 23, 1996, if a hotel or motel room is 
renovated or newly constructed, or the telephone in a hotel or motel 
room is replaced or substantially, internally repaired, the telephone in 
that room must be:
    (A) Hearing aid compatible, as defined in Sec. 68.316, after 
October 23, 1996; and
    (B) Include volume control, as defined in Sec. 68.317, on or after 
January 1, 2000.

[[Page 462]]

    (ii) The telephones in at least twenty percent of the guest rooms in 
a hotel or motel must be hearing aid compatible, as defined in Sec. 
68.316, as of April 1, 1997.
    (iii) Notwithstanding the requirements of paragraph (b)(6) of this 
section, hotels and motels which use telephones purchased during the 
period January 1, 1985 through December 31, 1989 may provide telephones 
that are hearing aid compatible, as defined in Sec. 68.316, in guest 
rooms according to the following schedule:
    (A) The telephones in at least twenty percent of the guest rooms in 
a hotel or motel must be hearing aid compatible, as defined in Sec. 
68.316, as of April 1, 1997;
    (B) The telephones in at least twenty-five percent of the guest 
rooms in a hotel or motel must be hearing aid compatible, as defined in 
Sec. 68.316, by November 1, 1999; and
    (C) The telephones in one-hundred percent of the guest rooms in a 
hotel or motel must be hearing aid compatible, as defined in Sec. 
68.316, by January 1, 2001 for establishments with eighty or more guest 
rooms, and by January 1, 2004 for establishments with fewer than eighty 
guest rooms.
    (c) Telephones frequently needed by the hearing impaired. Closed 
circuit telephones, i.e., telephones which cannot directly access the 
public switched network, such as telephones located in lobbies of hotels 
or apartment buildings; telephones in stores which are used by patrons 
to order merchandise; telephones in public transportation terminals 
which are used to call taxis or to reserve rental automobiles, need not 
be hearing aid compatible, as defined in Sec. 68.316, until replaced.

[49 FR 1362, Jan. 11, 1984, as amended at 55 FR 28763, July 13, 1990; 57 
FR 27183, June 18, 1992; 61 FR 42186, Aug. 14, 1996; 61 FR 42392, Aug. 
15, 1996; 62 FR 43484, Aug. 14, 1997; 62 FR 51064, Sep. 30, 1997]



Sec. 68.160  Designation of Telecommunication Certification Bodies (TCBs).

    (a) The Commission may designate Telecommunication Certification 
Bodies (TCBs) to approve equipment as required under this part. 
Certification of equipment by a TCB shall be based on an application 
with all the information specified in this part. The TCB shall process 
the application to determine whether the product meets the Commission's 
requirements and shall issue a written grant of equipment authorization. 
The grant shall identify the TCB and the source of authority for issuing 
it.
    (b) The Federal Communications Commission shall designate TCBs in 
the United States to approve equipment subject to certification under 
the Commission's rules. TCBs shall be accredited by the National 
Institute of Standards and Technology (NIST) under its National 
Voluntary Conformity Assessment Evaluation (NVCASE) program or other 
recognized programs based on ISO/IEC Guide 65, to comply with the 
Commission's qualification criteria for TCBs. NIST may, in accordance 
with its procedures, allow other appropriately qualified accrediting 
bodies to accredit TCBs and testing laboratories. TCBs shall comply with 
the requirements in Sec. 68.162 of this part.
    (c) In accordance with the terms of an effective bilateral or 
multilateral mutual recognition agreement or arrangement (MRA) to which 
the United States is a party, bodies outside the United States shall be 
permitted to authorize equipment in lieu of the Commission. A body in an 
MRA partner economy may authorize equipment to U.S. requirements only if 
that economy permits bodies in the United States to authorize equipment 
to its requirements. The authority designating these telecommunication 
certification bodies shall meet the following criteria.
    (1) The organization accrediting the prospective telecommunication 
certification body shall be capable of meeting the requirements and 
conditions of ISO/IEC Guide 61.
    (2) The organization assessing the telecommunication certification 
body shall appoint a team of qualified experts to perform the assessment 
covering all of the elements within the scope of accreditation. For 
assessment of telecommunications equipment, the areas of expertise to be 
used during the assessment shall include, but not be limited to, 
electromagnetic compatibility and telecommunications equipment (wired 
and wireless).

[64 FR 4997, Feb. 2, 1999]

[[Page 463]]



Sec. 68.162  Requirements for Telecommunication Certification Bodies.

    (a) Telecommunication certification bodies (TCBs) designated by the 
Commission, or designated by another authority pursuant to an effective 
mutual recognition agreement or arrangement to which the United States 
is a party, shall comply with the following requirements.
    (b) Certification methodology. (1) The certification system shall be 
based on type testing as identified in sub-clause 1.2(a) of ISO/IEC 
Guide 65.
    (2) Certification shall normally be based on testing no more than 
one unmodified representative sample of each product type for which 
certification is sought. Additional samples may be requested if clearly 
warranted, such as when certain tests are likely to render a sample 
inoperative.
    (c) Criteria for designation. (1) To be designated as a TCB under 
this section, an entity shall, by means of accreditation, meet all the 
appropriate specifications in ISO/IEC Guide 65 for the scope of 
equipment it will certify. The accreditation shall specify the group of 
equipment to be certified and the applicable regulations for product 
evaluation.
    (2) The TCB shall demonstrate expert knowledge of the regulations 
for each product with respect to which the body seeks designation. Such 
expertise shall include familiarity with all applicable technical 
regulations, administrative provisions or requirements, as well as the 
policies and procedures used in the application thereof.
    (3) The TCB shall have the technical expertise and capability to 
test the equipment it will certify and shall also be accredited in 
accordance with ISO/IEC Guide 25 to demonstrate it is competent to 
perform such tests.
    (4) The TCB shall demonstrate an ability to recognize situations 
where interpretations of the regulations or test procedures may be 
necessary. The appropriate key certification and laboratory personnel 
shall demonstrate a knowledge of how to obtain current and correct 
technical regulation interpretations. The competence of the 
telecommunication certification body shall be demonstrated by 
assessment. The general competence, efficiency, experience, familiarity 
with technical regulations and products included in those technical 
regulations, as well as compliance with applicable parts of the ISO/IEC 
Guides 25 and 65, shall be taken into consideration.
    (5) A TCB shall participate in any consultative activities, 
identified by the Commission or NIST, to facilitate a common 
understanding and interpretation of applicable regulations.
    (6) The Commission will provide public notice of specific elements 
of these qualification criteria that will be used to accredit TCBs.
    (d) Sub-contractors. (1) In accordance with the provisions of sub-
clause 4.4 of ISO/IEC Guide 65, the testing of a product, or a portion 
thereof, may be performed by a sub-contractor of a designated TCB, 
provided the laboratory has been assessed by the TCB as competent and in 
compliance with the applicable provisions of ISO/IEC Guide 65 and other 
relevant standards and guides.
    (2) When a subcontractor is used, the TCB shall be responsible for 
the test results and shall maintain appropriate oversight of the 
subcontractor to ensure reliability of the test results. Such oversight 
shall include periodic audits of products that have been tested.
    (e) Designation of TCBs. (1) The Commission will designate as a TCB 
any organization that meets the qualification criteria and is accredited 
by NIST or its recognized accreditor.
    (2) The Commission will withdraw the designation of a TCB if the 
TCB's accreditation by NIST or its recognized accreditor is withdrawn, 
if the Commission determines there is just cause for withdrawing the 
designation, or if the TCB requests that it no longer hold the 
designation. The Commission will provide a TCB with 30 days notice of 
its intention to withdraw the designation and provide the TCB with an 
opportunity to respond.
    (3) A list of designated TCBs will be published by the Commission.
    (f) Scope of responsibility. (1) TCBs shall certify equipment in 
accordance with the Commission's rules and policies.

[[Page 464]]

    (2) A TCB shall accept test data from any source, subject to the 
requirements in ISO/IEC Guide 65, and shall not unnecessarily repeat 
tests.
    (3) TCBs may establish and assess fees for processing certification 
applications and other tasks as required by the Commission.
    (4) A TCB may rescind a grant of certification within 30 days of 
grant for administrative errors. After that time, a grant can only be 
revoked by the Commission. A TCB shall notify both the applicant and the 
Commission when a grant is rescinded.
    (5) A TCB may not:
    (i) Grant a waiver of Commission rules or technical criteria 
published by the Administrative Council, or certify equipment for which 
Commission rules or requirements, or technical criteria do not exist, or 
for which the application of the rules or requirements, or technical 
criteria is unclear.
    (ii) Take enforcement actions.
    (6) All TCB actions are subject to Commission review.
    (g) Post-certification requirements. (1) A Telecommunications 
Certification Body shall supply a copy of each approved application form 
and grant of certification to the Administrative Council for Terminal 
Attachments.
    (2) In accordance with ISO/IEC Guide 65, a TCB is required to 
conduct appropriate surveillance activities. These activities shall be 
based on type testing a few samples of the total number of product types 
which the certification body has certified. Other types of surveillance 
activities of a product that has been certified are permitted, provided 
they are no more onerous than testing type. The Commission may at any 
time request a list of products certified by the certification body and 
may request and receive copies of product evaluation reports. The 
Commission may also request that a TCB perform post-market surveillance, 
under Commission guidelines, of a specific product it has certified.
    (3) If during post market surveillance of a certified product, a 
certification body determines that a product fails to comply with the 
applicable technical regulations, the certification body shall 
immediately notify the grantee and the Commission. A follow-up report 
shall also be provided within thirty days of the action taken by the 
grantee to correct the situation.
    (4) Where concerns arise, the TCB shall provide a copy of the 
application file to the Commission within 30 calendar days of a request 
for the file made by the Commission to the TCB and the manufacturer. 
Where appropriate, the file should be accompanied by a request for 
confidentiality for any material that may qualify for confidential 
treatment under the Commission's Rules. If the application file is not 
provided within 30 calendar days, a statement shall be provided to the 
Commission as to why it cannot be provided.
    (h) In case of a dispute with respect to designation or recognition 
of a TCB and the testing or certification of products by a TCB, the 
Commission will be the final arbiter. Manufacturers and designated TCBs 
will be afforded at least 30 days to comment before a decision is 
reached. In the case of a TCB designated or recognized, or a product 
certified pursuant to an effective bilateral or multilateral mutual 
recognition agreement or arrangement (MRA) to which the United States is 
a party, the Commission may limit or withdraw its recognition of a TCB 
designated by an MRA party and revoke the certification of products 
using testing or certification provided by such a TCB. The Commission 
shall consult with the Office of the United States Trade Representative 
(USTR), as necessary, concerning any disputes arising under an MRA for 
compliance with under the Telecommunications Trade Act of 1988 (Section 
1371-1382 of the Omnibus Trade and Competitiveness Act of 1988).

[64 FR 4998, Feb. 2, 1999, as amended at 66 FR 27601, May 18, 2001; 67 
FR 57182, Sept. 9, 2002]



            Subpart C_Terminal Equipment Approval Procedures



Sec. 68.201  Connection to the public switched telephone network.

    Terminal equipment may not be connected to the public switched 
telephone network unless it has either been certified by a 
Telecommunications Certification Body or the responsible party has 
followed all the procedures in

[[Page 465]]

this subpart for Supplier's Declaration of Conformity.

[66 FR 7583, Jan. 24, 2001]



Sec. 68.211  Terminal equipment approval revocation procedures.

    (a) Causes for revocation. The Commission may revoke the 
interconnection authorization of terminal equipment, whether that 
authorization was acquired through certification by a Telecommunications 
Certification Body or through the Supplier's Declaration of Conformity 
process in Sec. Sec. 68.320 through 68.350 of this part, where:
    (1) The equipment approval is shown to have been obtained by 
misrepresentation;
    (2) The approved equipment is shown to cause harms to the public 
switched telephone network, as defined in Sec. 68.3;
    (3) The responsible party willfully or repeatedly fails to comply 
with the terms and conditions of its equipment approval; or
    (4) The responsible party willfully or repeatedly fails to comply 
with any rule, regulation or order issued by the Commission under the 
Communications Act of 1934 relating to terminal equipment.
    (b) Notice of intent to revoke interconnection authority. Before 
revoking interconnection authority under the provisions of this section, 
the Commission, or the Enforcement Bureau under delegated authority, 
will issue a written Notice of Intent to Revoke Part 68 Interconnection 
Authority, or a Joint Notice of Apparent Liability for Forfeiture and 
Notice of Intent to Revoke Part 68 Interconnection Authority pursuant to 
Sec. Sec. 1.80 and 1.89 of this chapter.
    (c) Delivery. The notice will be sent via certified mail to the 
responsible party for the terminal equipment at issue at the address 
provided to the Administrative Council for Terminal Attachments.
    (d) Reauthorization. A product that has had its approval revoked may 
not be authorized for connection to the public switched telephone 
network for a period of six months from the date of revocation of the 
approval.
    (e) Reconsideration or appeal. A responsible party of terminal 
equipment that has had its authorization revoked and/or that has been 
assessed a forfeiture may request reconsideration or make administrative 
appeal of the decision pursuant to part 1 of the Commission's rules: 
Practice and Procedure, part 1 of this chapter.

[66 FR 7583, Jan. 24, 2001, as amended at 67 FR 13229, Mar. 21, 2002; 68 
FR 13850, Mar. 21, 2003]



Sec. 68.213  Installation of other than ``fully protected'' non-system simple 

customer premises wiring.

    (a) Scope of this rule. Provisions of this rule apply only to 
``unprotected'' premises wiring used with simple installations of wiring 
for up to four line residential and business telephone service. More 
complex installations of wiring for multiple line services, for use with 
systems such as PBX and key telephone systems, are controlled by Sec. 
68.215 of these rules.
    (b) Wiring authorized. Unprotected premises wiring may be used to 
connect units of terminal equipment or protective circuitry to one 
another, and to carrier-installed facilities if installed in accordance 
with these rules. The provider of wireline telecommunications is not 
responsible, except pursuant to agreement between it and the customer or 
undertakings by it, otherwise consistent with Commission requirements, 
for installation and maintenance of wiring on the subscriber's side of 
the demarcation point, including any wire or jacks that may have been 
installed by the carrier. The subscriber and/or premises owner may 
install wiring on the subscriber's side of the demarcation point, and 
may remove, reconfigure, and rearrange wiring on that side of the 
demarcation point including wiring and wiring that may have been 
installed by the carrier. The customer or premises owner may not access 
carrier wiring and facilities on the carrier's side of the demarcation 
point. Customers may not access the protector installed by the provider 
of wireline telecommunications. All plugs and jacks used in connection 
with inside wiring shall conform to the published technical criteria of 
the Administrative Council for Terminal Attachments. In multiunit 
premises with more than one customer, the premises owner may adopt a 
policy restricting a

[[Page 466]]

customer's access to wiring on the premises to only that wiring located 
in the customer's individual unit wiring that serves only that 
particular customer. See Sec. 68.105 in this part. The customer or 
premises owner may not access carrier wiring and facilities on the 
carrier's side of the demarcation point. Customers may not access the 
protector installed by the provider of wireline telecommunications. All 
plugs and jacks used in connection with inside wiring shall conform to 
the published technical criteria of the Administrative Council for 
Terminal Attachments.
    (c) Material requirements. (1) For new installations and 
modifications to existing installations, copper conductors shall be, at 
a minimum, solid, 24 gauge or larger, twisted pairs that comply with the 
electrical specifications for Category 3, as defined in the ANSI EIA/TIA 
Building Wiring Standards.
    (2) Conductors shall have insulation with a 1500 Volt rms minimum 
breakdown rating. This rating shall be established by covering the 
jacket or sheath with at least 15 cm (6 inches) (measured linearly on 
the cable) of conductive foil, and establishing a potential difference 
between the foil and all of the individual conductors connected 
together, such potential difference gradually increased over a 30 second 
time period to 1500 Volts rms, 60 Hertz, then applied continuously for 
one minute. At no time during this 90 second time interval shall the 
current between these points exceed 10 milliamperes peak.
    (3) All wire and connectors meeting the requirements set forth in 
paragraphs (c)(1) and (c)(2) shall be marked, in a manner visible to the 
consumer, with the symbol ``CAT 3'' or a symbol consisting of a ``C'' 
with a ``3'' contained within the ``C'' character, at intervals not to 
exceed one foot (12 inches) along the length of the wire.
    (d) Attestation. Manufacturers (or distributors or retailers, 
whichever name appears on the packaging) of non-system telephone 
premises wire shall attest in a letter to the Commission that the wire 
conforms with part 68, FCC Rules.

[49 FR 21734, May 23, 1984, as amended at 50 FR 29392, July 19, 1985; 50 
FR 47548, Nov. 19, 1985; 51 FR 944, Jan. 9, 1986; 55 FR 28630, July 12, 
1990; 58 FR 44907, Aug. 25, 1993; 62 FR 36464, July 8, 1997; 65 FR 4140, 
Jan. 26, 2000; 66 FR 7583, Jan. 24, 2001]



Sec. 68.214  Changes in other than ``fully protected'' premises wiring that 

serves fewer than four subscriber access lines.

    Operations associated with the installation, connection, 
reconfiguration and removal (other than final removal) of premises 
wiring that serves fewer than four subscriber access lines must be 
performed as provided in Sec. 68.215(c) if the premises wiring is not 
``fully protected.'' For this purpose, the supervisor and installer may 
be the same person.

[66 FR 7584, Jan. 24, 2001]



Sec. 68.215  Installation of other than ``fully protected'' system premises 

wiring that serves more than four subscriber access lines.

    (a) Types of wiring authorized--(1) Between equipment entities. 
Unprotected premises wiring, and protected premises wiring requiring 
acceptance testing for imbalance, may be used to connect separately-
housed equipment entities to one another.
    (2) Between an equipment entity and the public switched telephone 
network interface(s). Fully-protected premises wiring shall be used to 
connect equipment entities to the public switched telephone network 
interface unless the provider of wireline telecommunications is 
unwilling or unable to locate the interface within 7.6 meters (25 feet) 
of the equipment entity on reasonable request. In any such case, other 
than fully-protected premises wiring may be used if otherwise in 
accordance with these rules.
    (3) Hardware protection as part of the facilities of the provider of 
wireline telecommunications. In any case where the carrier chooses to 
provide (and the customer chooses to accept, except as authorized under 
paragraph (g) of this section), hardware protection on the network side 
of the interface(s), the presence of such hardware protection

[[Page 467]]

will affect the classification of premises wiring for the purposes of 
Sec. 68.215, as appropriate.
    (b) Installation personnel. Operations associated with the 
installation, connection, reconfiguration and removal (other than final 
removal of the entire premises communications system) of other than 
fully-protected premises wiring shall be performed under the supervision 
and control of a supervisor, as defined in paragraph (c) of this 
section. The supervisor and installer may be the same person.
    (c) Supervision. Operations by installation personnel shall be 
performed under the responsible supervision and control of a person who:
    (1) Has had at least six months of on-the-job experience in the 
installation of telephone terminal equipment or of wiring used with such 
equipment;
    (2) Has been trained by the registrant of the equipment to which the 
wiring is to be connected in the proper performance of any operations by 
installation personnel which could affect that equipment's continued 
compliance with these rules;
    (3) Has received written authority from the registrant to assure 
that the operations by installation personnel will be performed in such 
a manner as to comply with these rules.
    (4) Or, in lieu of paragraphs (c) (1) through (3) of this section, 
is a licensed professional engineer in the jurisdiction in which the 
installation is performed.
    (d) Workmanship and material requirements--(1) General. Wiring shall 
be installed so as to assure that there is adequate insulation of 
telephone wiring from commercial power wiring and grounded surfaces. 
Wiring is required to be sheathed in an insulating jacket in addition to 
the insulation enclosing individual conductors (see below) unless 
located in an equipment enclosure or in an equipment room with 
restricted access; it shall be assured that this physical and electrical 
protection is not damaged or abraded during placement of the wiring. Any 
intentional removal of wiring insulation (or a sheath) for connections 
or splices shall be accomplished by removing the minimum amount of 
insulation necessary to make the connection or splice, and insulation 
equivalent to that provided by the wire and its sheath shall be suitably 
restored, either by placement of the splices or connections in an 
appropriate enclosure, or equipment rooms with restricted access, or by 
using adequately-insulated connectors or splicing means.
    (2) Wire. Insulated conductors shall have a jacket or sheath with a 
1500 volt rms minimum breakdown rating, except when located in an 
equipment enclosure or an equipment room with restricted access. This 
rating shall be established by covering the jacket or sheath with at 
least 15 cm (6 in) (measured linearly on the cable) of conductive foil, 
and establishing a potential difference between the foil and all of the 
individual conductors connected together, such potential difference 
gradually increased over a 30 second time period to 1500 volts rms, 60 
Hertz, then applied continuously for one minute. At no time during this 
90 second time interval shall the current between these points exceed 10 
milliamperes peak.
    (3) Places where the jacket or sheath has been removed. Any point 
where the jacket or sheath has been removed (or is not required) shall 
be accessible for inspection. If such points are concealed, they shall 
be accessible without disturbing permanent building finish (e.g., by 
removing a cover).
    (4) Building and electrical codes. All building and electrical codes 
applicable in the jurisdiction to telephone wiring shall be complied 
with. If there are no such codes applicable to telephone wiring, Article 
800 of the 1978 National Electrical Code, entitled Communications 
Systems, and other sections of that Code incorporated therein by 
reference shall be complied with.
    (5) Limitations on electrical signals. Only signal sources that 
emanate from the provider of wireline telecommunications central office, 
or that are generated in equipment at the customer's premises and are 
``non-hazardous voltage sources'' as defined in the technical criteria 
published by the Administrative Council for Terminal Attachments, may be 
routed in premises telephone wiring, except for voltages for

[[Page 468]]

network control signaling and supervision that are consistent with 
standards employed by the provider of wireline telecommunications. 
Current on individual wiring conductors shall be limited to values which 
do not cause an excessive temperature rise, with due regard to 
insulation materials and ambient temperatures. The following table 
assumes a 45 [deg]C temperature rise for wire sizes 22 AWG or larger, 
and a 40 [deg]C rise for wire sizes smaller than 22 AWG, for poly-vinyl 
chloride insulating materials, and should be regarded as establishing 
maximum values to be derated accordingly in specific installations where 
ambient temperatures are in excess of 25 [deg]C:

    Maximum Continuous Current Capacity of PVC Insulated Copper Wire,
                                Confined
------------------------------------------------------------------------
                                                               Maximum
                Wire size, AWG                    Circular     current,
                                                    mils       amperes
------------------------------------------------------------------------
32............................................         63.2         0.32
30............................................        100.5         0.52
28............................................        159.8         0.83
26............................................        254.1          1.3
24............................................        404.0          2.1
22............................................        642.4          5.0
20............................................         1022          7.5
18............................................         1624           10
------------------------------------------------------------------------
Note: The total current in all conductors of multiple conductor cables
  may not exceed 20% of the sum of the individual ratings of all such
  conductors.

    (6) Physical protection. In addition to the general requirements 
that wiring insulation be adequate and not damaged during placement of 
the wiring, wiring shall be protected from adverse effects of weather 
and the environment in which it is used. Where wiring is attached to 
building finish surfaces (surface wiring), it shall be suitably 
supported by means which do not affect the integrity of the wiring 
insulation.
    (e) Documentation requirements. A notarized affidavit and one copy 
thereof shall be prepared by the installation supervisor in advance of 
each operation associated with the installation, connection, 
reconfiguration and removal of other than fully-protected premises 
wiring (except when accomplished functionally using a cross-connect 
panel), except when involved with removal of the entire premises 
communications system using such wiring. This affidavit and its copy 
shall contain the following information:
    (1) The responsible supervisor's full name, business address and 
business telephone number.
    (2) The name of the registrant(s) (or manufacturer(s), if 
grandfathered equipment is involved) of any equipment to be used 
electrically between the wiring and the telephone network interface, 
which does not contain inherent protection against hazardous voltages 
and longitudinal imbalance.
    (3) A statement as to whether the supervisor complies with Sec. 
68.215(c). Training and authority under Sec. 68.215(c)(2)-(3) is 
required from the registrant (or manufacturer, if grandfathered 
equipment is involved) of the first piece of equipment electrically 
connected to the telephone network interface, other than passive 
equipments such as extensions, cross-connect panels, or adapters. In 
general, this would be the registrant (or manufacturer) of a system's 
common equipment.
    (4) The date(s) when placement and connection of the wiring will 
take place.
    (5) The business affiliation of the installation personnel.
    (6) Identification of specific national and local codes which will 
be adhered to.
    (7) The manufacturer(s); a brief description of the wire which will 
be used (model number or type); its conformance with recognized 
standards for wire if any (e.g., Underwriters Laboratories listing, 
Rural Electrification Administration listing, ``KS-'' specification, 
etc.); and a general description of the attachment of the wiring to the 
structure (e.g., run in conduit or ducts exclusively devoted to 
telephone wiring, ``fished'' through walls, surface attachment, etc.).
    (8) The date when acceptance testing for imbalance will take place.
    (9) The supervisor's signature. The notarized original shall be 
submitted to the provider of wireline telecommunications at least ten 
calendar days in advance of the placement and connection of the wiring. 
This time period may be changed by agreement of the provider of wireline 
telecommunications and the supervisor. The copy shall be maintained at 
the premises,

[[Page 469]]

available for inspection, so long as the wiring is used for telephone 
service.
    (f) Acceptance testing for imbalance. Each telephone network 
interface that is connected directly or indirectly to other than fully-
protected premises wiring shall be subjected to the acceptance test 
procedures specified in this section whenever an operation associated 
with the installation, connection, reconfiguration or removal of this 
wiring (other than final removal) has been performed.
    (1) Test procedure for two-way or outgoing lines or loops. A 
telephone instrument may be associated directly or indirectly with the 
line or loop to perform this test if one is not ordinarily available to 
it:
    (i) Lift the handset of the telephone instrument to create the off-
hook state on the line or loop under test.
    (ii) Listen for noise. Confirm that there is neither audible hum nor 
excessive noise.
    (iii) Listen for dial tone. Confirm that dial tone is present.
    (iv) Break dial tone by dialing a digit. Confirm that dial tone is 
broken as a result of dialing.
    (v) With dial tone broken, listen for audible hum or excessive 
noise. Confirm that there is neither audible hum nor excessive noise.
    (2) Test procedure for incoming-only (non-originating) lines or 
loops. A telephone instrument may be associated directly or indirectly 
with the line or loop to perform this test if one is not ordinarily 
available to it:
    (i) Terminate the line or loop under test in a telephone instrument 
in the on-hook state.
    (ii) Dial the number of the line or loop under test from another 
station, blocking as necessary other lines or loops to cause the line or 
loop under test to be reached.
    (iii) On receipt of ringing on the line or loop under test, lift the 
handset of the telephone instrument to create the off-hook state on that 
line or loop.
    (iv) Listen for audible hum or excessive noise. Confirm that there 
is neither audible hum nor excessive noise.
    (3) Failure of acceptance test procedures. Absence of dial tone 
before dialing, inability to break dial tone, or presence of audible hum 
or excessive noise (or any combination of these conditions) during test 
of two-way or outgoing lines or loops indicates failure. Inability to 
receive ringing, inability to break ringing by going off-hook, or 
presence of audible hum or excessive noise (or any combination of these 
conditions) during test of incoming-only lines or loops indicates 
failure. Upon any such failure, the failing equipment or portion of the 
premises communications system shall be disconnected from the network 
interface, and may not be reconnected until the cause of the failure has 
been isolated or removed. Any previously tested lines or loops shall be 
retested if they were in any way involved in the isolation and removal 
of the cause of the failure.
    (4) Monitoring or participation in acceptance testing by the 
provider of wireline telecommunications. The provider of wireline 
telecommunications may monitor or participate in the acceptance testing 
required under this section, in accordance with Sec. 68.215(g) of this 
part, from its central office test desk or otherwise.
    (g) Extraordinary procedures. The provider of wireline 
communications is hereby authorized to limit the subscriber's right of 
connecting approved terminal equipment or protective circuitry with 
other than fully-protected premises wiring, but solely in accordance 
with this paragraph and Sec. 68.108 of these rules.
    (1)(i) Conditions that may invoke these procedures. The 
extraordinary procedures authorized herein may only be invoked where one 
or more of the following conditions is present:
    (A) Information provided in the supervisor's affidavit gives reason 
to believe that a violation of part 68 of the FCC's rules is likely.
    (B) A failure has occurred during acceptance testing for imbalance.
    (C) Harm has occurred, and there is reason to believe that this harm 
was a result of wiring operations performed under this section.
    (ii) The extraordinary procedures authorized in the following 
subsections shall not be used so as to discriminate between 
installations by provider of wireline telecommunications personnel and 
installations by others. In general, this requires that any charges for 
these

[[Page 470]]

procedures be levied in accordance with, or analogous to, the 
``maintenance of service'' tariff provisions: If the installation proves 
satisfactory, no charge should be levied.
    (2) Monitoring or participation in acceptance testing for imbalance. 
Notwithstanding the previous sub-section, the provider of wireline 
telecommunications may monitor or participate in acceptance testing for 
imbalance at the time of the initial installation of wiring in the 
absence of the conditions listed therein; at any other time, on or more 
of the listed conditions shall be present. Such monitoring or 
participation in acceptance testing should be performed from the central 
office test desk where possible to minimize costs.
    (3) Inspection. Subject to paragraph (g)(1) of this section, the 
provider of wireline telecommunications may inspect wiring installed 
pursuant to this section, and all of the splicing and connection points 
required to be accessible by Sec. 68.215(d)(3) to determine compliance 
with this section. The user or installation supervisor shall either 
authorize the provider of wireline telecommunications to render the 
splicing and inspection points visible (e.g., by removing covers), or 
perform this action prior to the inspection. To minimize disruption of 
the premises communications system, the right of inspecting is limited 
as follows:
    (i) During initial installation of wiring:
    (A) The provider of wireline telecommunications may require 
withdrawal of up to 5 percent (measured linearly) of wiring run 
concealed in ducts, conduit or wall spaces, to determine conformance of 
the wiring to the information furnished in the affidavit.
    (B) In the course of any such inspection, the provider of wireline 
telecommunications shall have the right to inspect documentation 
required to be maintained at the premises under Sec. 68.215(e).
    (ii) After failure of acceptance testing or after harm has resulted 
from installed wiring: The provider of wireline telecommunications may 
require withdrawal of all wiring run concealed in ducts, conduit or wall 
spaces which reasonably could have caused the failure or harm, to 
determine conformance of the wiring to the information furnished in the 
affidavit.
    (iii) In the course of any such inspection, the provider of wireline 
telecommunications shall have the right to inspect documentation 
required to be maintained at the premises under Sec. 68.215(e).
    (4) Requiring the use of protective apparatus. In the event that any 
of the conditions listed in paragraph (g)(1) of this section, arises, 
and is not permanently remedied within a reasonable time period, the 
provider of wireline telecommunications may require the use of 
protective apparatus that either protects solely against hazardous 
voltages, or that protects both against hazardous voltages and 
imbalance. Such apparatus may be furnished either by the provider of 
wireline telecommunications or by the customer. This right is in 
addition to the rights of the provider of wireline telecommunications 
under Sec. 68.108.
    (5) Notice of the right to bring a complaint. In any case where the 
provider of wireline telecommunications invokes the extraordinary 
procedures of Sec. 68.215(g), it shall afford the customer the 
opportunity to correct the situation that gave rise to invoking these 
procedures, and inform the customer of the right to bring a complaint to 
the Commission pursuant to the procedures set forth in subpart E of this 
part. On complaint, the Commission reserves the right to perform any of 
the inspections authorized under this section, and to require the 
performance of acceptance tests.
    (h) Limitations on the foregoing if protected wiring requiring 
acceptance testing is used. If protected wiring is used which required 
acceptance testing, the requirements in the foregoing paragraphs of 
Sec. 68.215 are hereby limited, as follows:
    (1) Supervision. Section 68.215(c)(2)-(3) are hereby waived. The 
supervisor is only required to have had at least six months of on-the-
job experience in the installation of telephone terminal equipment or of 
wiring used with such equipment.
    (2) Extraordinary procedures. Section 68.215(g)(3) is hereby limited 
to allow for inspection of exposed wiring and connection and splicing 
points, but not

[[Page 471]]

for requiring the withdrawal of wiring from wiring run concealed in 
ducts, conduit or wall spaces unless actual harm has occurred, or a 
failure of acceptance testing has not been corrected within a reasonable 
time. In addition, Sec. 68.215(g)(4) is hereby waived.

[43 FR 16499, Apr. 19, 1978, as amended at 44 FR 7958, Feb. 8, 1979; 47 
FR 37896, Aug. 27, 1982; 49 FR 21735, May 23, 1984; 58 FR 44907, Aug. 
25, 1993; 66 FR 7584, Jan. 24, 2001]



Sec. 68.218  Responsibility of the party acquiring equipment authorization.

    (a) In acquiring approval for terminal equipment to be connected to 
the public switched telephone network, the responsible party warrants 
that each unit of equipment marketed under such authorization will 
comply with all applicable rules and regulations of this part and with 
the applicable technical criteria of the Administrative Council for 
Terminal Attachments.
    (b) The responsible party or its agent shall provide the user of the 
approved terminal equipment the following:
    (1) Consumer instructions required to be included with approved 
terminal equipment by the Administrative Council for Terminal 
Attachments;
    (2) For a telephone that is not hearing aid-compatible, as defined 
in Sec. 68.316 of these rules:
    (i) Notice that FCC rules prohibit the use of that handset in 
certain locations; and
    (ii) A list of such locations (see Sec. 68.112).
    (c) When approval is revoked for any item of equipment, the 
responsible party must take all reasonable steps to ensure that 
purchasers and users of such equipment are notified to discontinue use 
of such equipment.

[66 FR 7585, Jan. 24, 2001]



Sec. 68.224  Notice of non-hearing aid compatibility.

    Every non-hearing aid compatible telephone offered for sale to the 
public on or after August 17, 1989, whether previously-registered, newly 
registered or refurbished shall:
    (a) Contain in a conspicuous location on the surface of its 
packaging a statement that the telephone is not hearing aid compatible, 
as is defined in Sec. Sec. 68.4(a)(3) and 68.316, or if offered for 
sale without a surrounding package, shall be affixed with a written 
statement that the telephone is not hearing aid-compatible, as defined 
in Sec. Sec. 68.4(a)(3) and 68.316; and
    (b) Be accompanied by instructions in accordance with Sec. 
68.218(b)(5) of the rules.

[54 FR 21431, May 18, 1989, as amended at 61 FR 42187, Aug. 14, 1996]



          Subpart D_Conditions for Terminal Equipment Approval

    Authority: Secs. 4, 5, 303, 48 Stat., as amended, 1066, 1068, 1082 
(47 U.S.C. 154, 155, 303).

    Source: 45 FR 20853, Mar. 31, 1980, unless otherwise noted.



Sec. 68.300  Labeling requirements.

    (a) Terminal equipment approved as set out in this part must be 
labeled in accordance with the requirements published by the 
Administrative Council for Terminal Attachments and with requirements of 
this part for hearing aid compatibility and volume control.
    (b) As of April 1, 1997, all registered telephones, including 
cordless telephones, as defined in Sec. 15.3(j) of this chapter, 
manufactured in the United States (other than for export) or imported 
for use in the United States, that are hearing aid compatible, as 
defined in Sec. 68.316, shall have the letters ``HAC'' permanently 
affixed thereto. ``Permanently affixed'' shall be defined as in 
paragraph (b)(5) of this section. Telephones used with public mobile 
services or private radio services, and secure telephones, as defined by 
Sec. 68.3, are exempt from this requirement.

[62 FR 61664, Nov. 19, 1997, as amended at 64 FR 3048, Jan. 20, 1999; 66 
FR 7585, Jan. 24, 2001]



Sec. 68.316  Hearing aid compatibility: Technical requirements.

    A telephone handset is hearing aid compatible for the purposes of 
this section if it complies with the following standard, published by 
the Telecommunications Industry Association, copyright 1983, and 
reproduced by permission of the Telecommunications Industry Association:

[[Page 472]]

 Electronic Industries Association Recommended Standard RS-504 Magnetic 
 Field Intensity Criteria for Telephone Compatibility With Hearing Aids

[Prepared by EIA Engineering Committee TR-41 and the Hearing Industries 
            Association's Standards and Technical Committee]

                            Table of Contents

                          List of Illustrations

1 INTRODUCTION
2 SCOPE
3 DEFINITIONS
4 TECHNICAL REQUIREMENTS
4.1 General
4.2 Axial Field Intensity
4.3 Radial Field Intensity
4.4 Induced Voltage Frequency Response

Appendix A--Bibliography

                          List of Illustrations

                              Figure Number

1 Reference and Measurement Planes and Axes
2 Measurement Block Diagram
3 Probe Coil Parameters
4A Induced Voltage Frequency Response for receivers with an axial field 
          that exceeds -19 dB
4B Induced Voltage Frequency Response for receivers with an axial field 
          that exceeds -22 dB but is less than -19 dB

   Magnetic Field Intensity Criteria for Telephone Compatibility With 
                              Hearing Aids

    (From EIA Standards Proposal No. 1652, formulated under the 
cognizance of EIA TR-41 Committee on Voice Telephone Terminals and the 
Hearing Industries Association's Standards and Technical Committee.)

                             1 Introduction

    Hearing-aid users have used magnetic coupling to enable them to 
participate in telephone communications since the 1940's. Magnetic pick-
ups in hearing-aids have provided for coupling to many, but not all, 
types of telephone handsets. A major reason for incompatibility has been 
the lack of handset magnetic field intensity requirements. Typically, 
whatever field existed had been provided fortuitously rather than by 
design. More recently, special handset designs, e.g., blue grommet 
handsets associated with public telephones, have been introduced to 
provide hearing-aid coupling and trials were conducted to demonstrate 
the acceptability of such designs. It is anticipated that there will be 
an increase in the number of new handset designs in the future. A 
standard definition of the magnetic field intensity emanating from 
telephone handsets intended to provide hearing-aid coupling is needed so 
that hearing-aid manufacturers can design their product to use this 
field, which will be guaranteed in handsets which comply with this 
standard.
    1.1 This standard is one of a series of technical standards on voice 
telephone terminal equipment prepared by EIA Engineering Committee TR-
41. This document, with its companion standards on Private Branch 
Exchanges (PBX), Key Telephone Systems (KTS), Telephones and 
Environmental and Safety Considerations (Refs: A1, A2, A3 and A4) fills 
a recognized need in the telephone industry brought about by the 
increasing use in the public telephone network of equipment supplied by 
numerous manufacturers. It will be useful to anyone engaged in the 
manufacture of telephone terminal equipment and hearing-aids and to 
those purchasing, operating or using such equipment or devices.
    1.2 This standard is intended to be a living document, subject to 
revision and updating as warranted by advances in network and terminal 
equipment technology and changes in the FCC Rules and Regulations.

                                 2 Scope

    2.1 The purpose of this document is to establish formal criteria 
defining the magnetic field intensity presented by a telephone to which 
hearing aids can couple. The requirements are based on present 
telecommunications plant characteristics at the telephone interface. The 
telephone will also be subject to the applicable requirements of EIA RS-
470, Telephone Instruments with Loop Signaling for Voiceband 
Applications (Ref: A3) and the environmental requirements specified in 
EIA Standards Project PN-1361, Environmental and Safety Considerations 
for Voice Telephone Terminals, when published (Ref: A4).
    Telephones which meet these requirements should ensure satisfactory 
service to users of magnetically coupled hearing-aids in a high 
percentage of installations, both initially and over some period of 
time, as the network grows and changes occur in telephone serving 
equipment. However, due to the wide range of customer apparatus and loop 
plant and dependent on the environment in which the telephone and 
hearing aid are used, conformance with this standard does not guarantee 
acceptable performance or interface compatibility under all possible 
operating conditions.
    2.2 A telephone complies with this standard if it meets the 
requirements in this standard when manufactured and can be expected to 
continue to meet these requirements when properly used and maintained. 
For satisfactory service a telephone needs to be capable, through the 
proper selection of equipment options, of satisfying the requirements 
applicable to its marketing area.

[[Page 473]]

    2.3 The standard is intended to be in conformance with part 68 of 
the FCC Rules and Regulations, but it is not limited to the scope of 
those rules (Ref: A5).
    2.4 The signal level and method of measurement in this standard have 
been chosen to ensure reproducible results and permit comparison of 
evaluations. The measured magnetic field intensity will be approximately 
15 dB above the average level encountered in the field and the measured 
high-end frequency response will be greater than that encountered in the 
field.
    2.5 The basic accuracy and reproducibility of measurements made in 
accordance with this standard will depend primarily upon the accuracy of 
the test equipment used, the care with which the measurements are 
conducted, and the inherent stability of the devices under test.

                              3 Definitions

    This section contains definitions of terms needed for proper 
understanding and application of this standard which are not believed to 
be adequately treated elsewhere. A glossary of telephone terminology, 
which will be published as a companion volume to the series of technical 
standards on Telephone Terminals For Voiceband Applications, is 
recommended as a general reference and for definitions not covered in 
this section.
    3.1 A telephone is a terminal instrument which permits two-way, 
real-time voice communication with a distant party over a network or 
customer premises connection. It converts real-time voice and voiceband 
acoustic signals into electrical signals suitable for transmission over 
the telephone network and converts received electrical signals into 
acoustic signals. A telephone which meets the requirements of this 
standard also generates a magnetic field to which hearing-aids may 
couple.
    3.2 The telephone boundaries are the electrical interface with the 
network, PBX or KTS and the acoustic, magnetic and mechanical interfaces 
with the user. The telephone may also have an electrical interface with 
commercial power.
    3.3 A hearing aid is a personal electronic amplifying device, 
intended to increase the loudness of sound and worn to compensate for 
impaired hearing. When equipped with an optional inductive pick-up coil 
(commonly called a telecoil), a hearing aid can be used to amplify 
magnetic fields such as those from telephone receivers or induction-loop 
systems.
    3.4 The reference plane is the planar area containing points of the 
receiver-end of the handset which, in normal handset use, rest against 
the ear (see Fig 1).
    3.5 The measurement plane is parallel to, and 10 mm in front of, the 
reference plane (see Fig 1).
    3.6 The reference axis is normal to the reference plane and passes 
through the center of the receiver cap (or the center of the hole array, 
for handset types that do not have receiver caps).
    3.7 The measurement axis is parallel to the reference axis but may 
be displaced from that axis, by a maximum of 10 mm (see Fig 1). Within 
this constraint, the measurement axis may be located where the axial and 
radial field intensity measurements, are optimum with regard to the 
requirements. In a handset with a centered receiver and a circularly 
symmetrical magnetic field, the measurement axis and the reference axis 
would coincide.
[GRAPHIC] [TIFF OMITTED] TC02JN91.027


[[Page 474]]



                        4 Technical Requirements

    4.1 General.
    These criteria apply to handsets when tested as a constituent part 
of a telephone.
    4.1.1 Three parameters descriptive of the magnetic field at points 
in the measurement plane shall be used to ascertain adequacy for 
magnetic coupling. These three parameters are intensity, direction and 
frequency response, associated with the field vector.
    4.1.2 The procedures for determining the parameter values are 
defined in the IEEE Standard Method For Measuring The Magnetic Field 
Intensity Around A Telephone Receiver (Ref: A6), with the exception that 
this EIA Recommended Standard does not require that the measurements be 
made using an equivalent loop of 2.75 km of No. 26 AWG cable, but uses a 
1250-ohm resistor in series with the battery feed instead (see Fig 2).
    4.1.3 When testing other than general purpose analog telephones, 
e.g., proprietary or digital telephones, an appropriate feed circuit and 
termination shall be used that produces equivalent test conditions.
    4.2 Axial Field Intensity.
    When measured as specified in 4.1.2, the axial component of the 
magnetic field directed along the measurement axis and located at the 
measurement plane, shall be greater than -22 dB relative to 1 A/m, for 
an input of -10 dBV at 1000 Hz (see Fig 2).

    Note: If the magnitude of the axial component exceeds -19 dB 
relative to 1 A/m, some relaxation in the frequency response is 
permitted (See 4.4.1).

    4.3 Radial Field Intensity.
    When measured as specified in 4.1.2, radial components of the 
magnetic field as measured at four points 90[deg] apart, and at a 
distance =16 mm from the measurement axis (as selected in 
4.2), shall be greater than -27 dB relative to 1 A/m, for an input of -
10 dBV at 1000 Hz (see Fig 2).
    4.4 Induced Voltage Frequency Response.
    The frequency response of the voltage induced in the probe coil by 
the axial component of the magnetic field as measured in 4.2, shall fall 
within the acceptable region of Fig 4A or Fig 4B (see 4.4.1 and 4.4.2), 
over the frequency range 300-to-3300 Hz.
    4.4.1 For receivers with an axial component which exceeds -19 dB 
relative to 1 A/m, when measured as specified in 4.1.2, the frequency 
response shall fall within the acceptable region of Fig 4A.
    4.4.2 For receivers with an axial component which is less than -19 
dB but greater than -22 dB relative to 1 A/m, when measured as specified 
in 4.1.2, the frequency response shall fall within the acceptable region 
of Fig 4B.

[[Page 475]]

[GRAPHIC] [TIFF OMITTED] TC02JN91.028


[[Page 476]]


[GRAPHIC] [TIFF OMITTED] TC02JN91.029


[[Page 477]]


[GRAPHIC] [TIFF OMITTED] TC02JN91.030


[[Page 478]]


[GRAPHIC] [TIFF OMITTED] TC02JN91.031

Appendix A--Bibliography
    (A1) EIA Standard RS-464, Private Branch Exchange (PBX) Switching 
Equipment for Voiceband Applications.
    (A2) EIA Standard RS-478, Multi-Line Key Telephone Systems (KTS) for 
Voiceband Applications.

[[Page 479]]

    (A3) EIA Standard RS-470, Telephone Instruments with Loop Signaling 
for Voiceband Applications.
    (A4) EIA Project Number PN-1361, Environmental and Safety 
Considerations for Voice Telephone Terminals.
    (A5) Federal Communications Commission Rules and Regulations, part 
68, Connection of Terminal Equipment to the Telephone Network.
    (A6) IEEE Standard, Method for Measuring the Magnetic Field arould a 
Telephone Receiver. (to be published)

[49 FR 1363, Jan. 11, 1984, as amended at 61 FR 42187, Aug. 14, 1996]



Sec. 68.317  Hearing aid compatibility volume control: technical standards.

    (a) An analog telephone complies with the Commission's volume 
control requirements if the telephone is equipped with a receive volume 
control that provides, through the receiver in the handset or headset of 
the telephone, 12 dB of gain minimum and up to 18 dB of gain maximum, 
when measured in terms of Receive Objective Loudness Rating (ROLR), as 
defined in paragraph 4.1.2 of ANSI/EIA-470-A-1987 (Telephone Instruments 
With Loop Signaling) . The 12 dB of gain minimum must be achieved 
without significant clipping of the test signal. The telephone also 
shall comply with the upper and lower limits for ROLR given in table 4.4 
of ANSI/EIA-470-A-1987 when the receive volume control is set to its 
normal unamplified level.

    Note to paragraph (a): Paragraph 4.1.2 of ANSI/EIA-470-A-1987 
identifies several characteristics related to the receive response of a 
telephone. It is only the normal unamplified ROLR level and the change 
in ROLR as a function of the volume control setting that are relevant to 
the specification of volume control as required by this section.

    (b) The ROLR of an analog telephone shall be determined over the 
frequency range from 300 to 3300 HZ for short, average, and long loop 
conditions represented by 0, 2.7, and 4.6 km of 26 AWG nonloaded cable, 
respectively. The specified length of cable will be simulated by a 
complex impedance. (See Figure A.) The input level to the cable 
simulator shall be -10 dB with respect to 1 V open circuit from a 900 
ohm source.
    (c) A digital telephone complies with the Commission's volume 
control requirements if the telephone is equipped with a receive volume 
control that provides, through the receiver of the handset or headset of 
the telephone, 12 dB of gain minimum and up to 18 dB of gain maximum, 
when measured in terms of Receive Objective Loudness Rating (ROLR), as 
defined in paragraph 4.3.2 of ANSI/EIA/TIA-579-1991 (Acoustic-To-Digital 
and Digital-To-Acoustic Transmission Requirements for ISDN Terminals). 
The 12 dB of gain minimum must be achieved without significant clipping 
of the test signal. The telephone also shall comply with the limits on 
the range for ROLR given in paragraph 4.3.2.2 of ANSI/EIA/TIA-579-1991 
when the receive volume control is set to its normal unamplified level.
    (d) The ROLR of a digital telephone shall be determined over the 
frequency range from 300 to 3300 Hz using the method described in 
paragraph 4.3.2.1 of ANSI/EIA/TIA-579-1991. No variation in loop 
conditions is required for this measurement since the receive level of a 
digital telephone is independent of loop length.
    (e) The ROLR for either an analog or digital telephone shall first 
be determined with the receive volume control at its normal unamplified 
level. The minimum volume control setting shall be used for this 
measurement unless the manufacturer identifies a different setting for 
the nominal volume level. The ROLR shall then be determined with the 
receive volume control at its maximum volume setting. Since ROLR is a 
loudness rating value expressed in dB of loss, more positive values of 
ROLR represent lower receive levels. Therefore, the ROLR value 
determined for the maximum volume control setting should be subtracted 
from that determined for the nominal volume control setting to determine 
compliance with the gain requirement.
    (f) The 18 dB of receive gain may be exceeded provided that the 
amplified receive capability automatically resets to nominal gain when 
the telephone is caused to pass through a proper on-hook transition in 
order to minimize the likelihood of damage to individuals with normal 
hearing.

[[Page 480]]

    (g) These incorporations by reference of paragraph 4.1.2 (including 
table 4.4) of American National Standards Institute (ANSI) Standard 
ANSI/EIA-470-A-1987 and paragraph 4.3.2 of ANSI/EIA/TIA-579-1991 were 
approved by the Director of the Federal Register in accordance with 5 
U.S.C. 552(a) and 1 CFR part 51. Copies of these publications may be 
purchased from the American National Standards Institute (ANSI), Sales 
Department, 11 West 42nd Street, 13th Floor, New York, NY 10036, (212) 
642-4900. Copies also may be inspected during normal business hours at 
the following locations: Consumer and Governmental Affairs Bureau, 
Reference Information Center, Federal Communications Commission, 445 
12th Street, SW, Washington, DC 20554; and 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/code--of--federal--regulations/ibr--
locations.html.

[61 FR 42187, Aug. 14, 1996, as amended at 64 FR 60726, Nov. 8, 1999; 67 
FR 13229, Mar. 21, 2002; 69 FR 18803, Apr. 9, 2004]



Sec. 68.318  Additional limitations.

    (a) General. Registered terminal equipment for connection to those 
services discussed below must incorporate the specified features.
    (b) Registered terminal equipment with automatic dialing capability. 
(1) Automatic dialing to any individual number is limited to two 
successive attempts. Automatic dialing equipment which employ means for 
detecting both busy and reorder signals shall be permitted an additional 
13 attempts if a busy or reorder signal is encountered on each attempt. 
The dialer shall be unable to re-attempt a call to the same number for 
at least 60 minutes following either the second or fifteenth successive 
attempt, whichever applies, unless the dialer is reactivated by either 
manual or external means. This rule does not apply to manually activated 
dialers that dial a number once following each activation.

    Note to paragraph (b)(1): Emergency alarm dialers and dialers under 
external computer control are exempt from these requirements.

    (2) If means are employed for detecting both busy and reorder 
signals, the automatic dialing equipment shall return to its on-hook 
state within 15 seconds after detection of a busy or reorder signal.
    (3) If the called party does not answer, the automatic dialer shall 
return to the on-hook state within 60 seconds of completion of dialing.
    (4) If the called party answers, and the calling equipment does not 
detect a compatible terminal equipment at the called end, then the 
automatic dialing equipment shall be limited to one additional call 
which is answered. The automatic dialing equipment shall comply with 
paragraphs (b)(1), (b)(2), and (b)(3) of this section for additional 
call attempts that are not answered.
    (5) Sequential dialers shall dial only once to any individual number 
before proceeding to dial another number.
    (6) Network addressing signals shall be transmitted no earlier than:
    (i) 70 ms after receipt of dial tone at the network demarcation 
point; or
    (ii) 600 ms after automatically going off-hook (for single line 
equipment that does not use dial tone detectors); or
    (iii) 70 ms after receipt of CO ground start at the network 
demarcation point.
    (c) Line seizure by automatic telephone dialing systems. Automatic 
telephone dialing systems which deliver a recorded message to the called 
party must release the called party's telephone line within 5 seconds of 
the time notification is transmitted to the system that the called party 
has hung up, to allow the called party's line to be used to make or 
receive other calls.
    (d) Telephone facsimile machines; Identification of the sender of 
the message. It shall be unlawful for any person within the United 
States to use a computer or other electronic device to send any message 
via a telephone facsimile machine unless such person clearly marks, in a 
margin at the top or bottom of each transmitted page of the message or 
on the first page of the transmission, the date and time it is sent and 
an identification of the business, other entity, or individual sending 
the message and the telephone number of the sending machine or of

[[Page 481]]

such business, other entity, or individual. If a facsimile broadcaster 
demonstrates a high degree of involvement in the sender's facsimile 
messages, such as supplying the numbers to which a message is sent, that 
broadcaster's name, under which it is registered to conduct business 
with the State Corporation Commission (or comparable regulatory 
authority), must be identified on the facsimile, along with the sender's 
name. Telephone facsimile machines manufactured on and after December 
20, 1992, must clearly mark such identifying information on each 
transmitted page.
    (e) Requirement that registered equipment allow access to common 
carriers. Any equipment or software manufactured or imported on or after 
April 17, 1992, and installed by any aggregator shall be technologically 
capable of providing consumers with access to interstate providers of 
operator services through the use of equal access codes. The terms used 
in this paragraph shall have meanings defined in Sec. 64.708 of this 
chapter (47 CFR 64.708).

[62 FR 61691, Nov. 19, 1997, as amended at 68 FR 44179, July 25, 2003]



Sec. 68.320  Supplier's Declaration of Conformity.

    (a) Supplier's Declaration of Conformity is a procedure where the 
responsible party, as defined in Sec. 68.3, makes measurements or takes 
other necessary steps to ensure that the terminal equipment complies 
with the appropriate technical standards.
    (b) The Supplier's Declaration of Conformity attaches to all items 
subsequently marketed by the responsible party which are identical, 
within the variation that can be expected to arise as a result of 
quantity production techniques, to the sample tested and found 
acceptable by the responsible party.
    (c) The Supplier's Declaration of Conformity signifies that the 
responsible party has determined that the equipment has been shown to 
comply with the applicable technical criteria if no unauthorized change 
is made in the equipment and if the equipment is properly maintained and 
operated.
    (d) The responsible party, if different from the manufacturer, may 
upon receiving a written statement from the manufacturer that the 
equipment complies with the appropriate technical criteria, rely on the 
manufacturer or independent testing agency to determine compliance. Any 
records that the Administrative Council for Terminal Attachments 
requires the responsible party to maintain shall be in the English 
language and shall be made available to the Commission upon a request.
    (e) No person shall use or make reference to a Supplier's 
Declaration of Conformity in a deceptive or misleading manner or to 
convey the impression that such a Supplier's Declaration of Conformity 
reflects more than a determination by the responsible party that the 
device or product has been shown to be capable of complying with the 
applicable technical criteria published by the Administrative Council of 
Terminal Attachments.

[66 FR 7585, Jan. 24, 2001]



Sec. 68.321  Location of responsible party.

    The responsible party for a Supplier's Declaration of Conformity 
must designate an agent for service of process that is physically 
located within the United States.

[67 FR 57182, Sept. 9, 2002]



Sec. 68.322  Changes in name, address, ownership or control of responsible party.

    (a) The responsible party for a Supplier's Declaration of Conformity 
may license or otherwise authorize a second party to manufacture the 
equipment covered by the Supplier's Declaration of Conformity provided 
that the responsible party shall continue to be responsible to the 
Commission for ensuring that the equipment produced pursuant to such an 
agreement remains compliant with the appropriate standards.
    (b) In the case of transactions affecting the responsible party of a 
Supplier's Declaration of Conformity, such as a transfer of control or 
sale to another company, mergers, or transfer of manufacturing rights, 
the successor entity shall become the responsible party.

[66 FR 7586, Jan. 24, 2001]

[[Page 482]]



Sec. 68.324  Supplier's Declaration of Conformity requirements.

    (a) Each responsible party shall include in the Supplier's 
Declaration of Conformity, the following information:
    (1) The identification and a description of the responsible party 
for the Supplier's Declaration of Conformity and the product, including 
the model number of the product,
    (2) A statement that the terminal equipment conforms with applicable 
technical requirements, and a reference to the technical requirements,
    (3) The date and place of issue of the declaration,
    (4) The signature, name and function of person making declaration,
    (5) A statement that the handset, if any, complies with Sec. 68.316 
of these rules (defining hearing aid compatibility), or that it does not 
comply with that section. A telephone handset which complies with Sec. 
68.316 shall be deemed a ``hearing aid-compatible telephone'' for 
purposes of Sec. 68.4.
    (6) Any other information required to be included in the Supplier's 
Declaration of Conformity by the Administrative Council of Terminal 
Attachments.
    (b) If the device that is subject to a Supplier's Declaration of 
Conformity is designed to operate in conjunction with other equipment, 
the characteristics of which can affect compliance of such device with 
part 68 rules and/or with technical criteria published by the 
Administrative Council for Terminal Attachments, then the Model 
Number(s) of such other equipment must be supplied, and such other 
equipment must also include a Supplier's Declaration of Conformity or a 
certification from a Telecommunications Certification Body.
    (c) The Supplier's Declaration of Conformity shall be included in 
the user's manual or as a separate document enclosed with the terminal 
equipment.
    (d) If terminal equipment is not subject to a Supplier's Declaration 
of Conformity, but instead contains protective circuitry that is subject 
to a Supplier's Declaration of Conformity, then the responsible party 
for the protective circuitry shall include with each module of such 
circuitry, a Supplier's Declaration of Conformity containing the 
information required under Sec. 68.340(a), and the responsible party of 
such terminal equipment shall include such statement with each unit of 
the product.
    (e) (1) The responsible party for the terminal equipment subject to 
a Supplier's Declaration of Conformity also shall provide to the 
purchaser of such terminal equipment, instructions as required by the 
Administrative Council for Terminal Attachments.
    (2) A copy of the Supplier's Declaration of Conformity shall be 
provided to the Administrative Council for Terminal Attachments along 
with any other information the Administrative Council for Terminal 
Attachments requires; this information shall be made available to the 
public.
    (3) The responsible party shall make a copy of the Supplier's 
Declaration of Conformity freely available to the general public on its 
company website. The information shall be accessible to the disabled 
community from the website. If the responsible party does not have a 
functional and reliable website, then the responsible party shall inform 
the Administrative Council for Terminal Attachments of such 
circumstances, and the Administrative Council for Terminal Attachments 
shall make a copy available on its website.
    (f) For a telephone that is not hearing aid-compatible, as defined 
in Sec. 68.316 of this part, the responsible party also shall provide 
the following in the Supplier's Declaration of Conformity:
    (1) Notice that FCC rules prohibit the use of that handset in 
certain locations; and
    (2) A list of such locations (see Sec. 68.112).

[66 FR 7586, Jan. 24, 2001]



Sec. 68.326  Retention of records.

    (a) The responsible party for a Supplier's Declaration of Conformity 
shall maintain records containing the following information:
    (1) A copy of the Supplier's Declaration of Conformity;
    (2) The identity of the testing facility, including the name, 
address, phone number and other contact information.

[[Page 483]]

    (3) A detailed explanation of the testing procedure utilized to 
determine whether terminal equipment conforms to the appropriate 
technical criteria.
    (4) A copy of the test results for terminal equipment compliance 
with the appropriate technical criteria.
    (b) For each device subject to the Supplier's Declaration of 
Conformity requirement, the responsible party shall maintain all records 
required under Sec. 68.326(a) for at least ten years after the 
manufacture of said equipment has been permanently discontinued, or 
until the conclusion of an investigation or a proceeding, if the 
responsible party is officially notified prior to the expiration of such 
ten year period that an investigation or any other administrative 
proceeding involving its equipment has been instituted, whichever is 
later.

[66 FR 7586, Jan. 24, 2001]



Sec. 68.346  Description of testing facilities.

    (a) Each responsible party for equipment that is subject to a 
Supplier's Declaration of Conformity under this part, shall compile a 
description of the measurement facilities employed for testing the 
equipment. The responsible party for the Supplier's Declaration of 
Conformity shall retain a description of the measurement facilities.
    (b) The description shall contain the information required to be 
included by the Administrative Council for Terminal Attachments.

[66 FR 7586, Jan. 24, 2001]



Sec. 68.348  Changes in equipment and circuitry subject to a Supplier's 

Declaration of Conformity.

    (a) No change shall be made in terminal equipment or protective 
circuitry that would result in any material change in the information 
contained in the Supplier's Declaration of Conformity Statement 
furnished to users.
    (b) Any other changes in terminal equipment or protective circuitry 
which is subject to an effective Supplier's Declaration of Conformity 
shall be made only by the responsible party or an authorized agent 
thereof, and the responsible party will remain responsible for the 
performance of such changes.

[66 FR 7586, Jan. 24, 2001]



Sec. 68.350  Revocation of Supplier's Declaration of Conformity.

    (a) The Commission may revoke any Supplier's Declaration of 
Conformity for cause in accordance with the provisions of this section 
or in the event changes in technical standards published by the 
Administrative Council for Terminal Attachments require the revocation 
of any outstanding Supplier's Declaration of Conformity in order to 
achieve the objectives of part 68.
    (b) Cause for revocation. In addition to the provisions in Sec. 
68.211, the Commission may revoke a Supplier's Declaration of 
Conformity:
    (1) For false statements or representations made in materials or 
responses submitted to the Commission and/or the Administrative Council 
for Terminal Attachments, or in records required to be kept by Sec. 
68.324 and the Administrative Council for Terminal Attachments.
    (2) If upon subsequent inspection or operation it is determined that 
the equipment does not conform to the pertinent technical requirements.
    (3) If it is determined that changes have been made in the equipment 
other that those authorized by this part or otherwise expressly 
authorized by the Commission.

[66 FR 7587, Jan. 24, 2001]



Sec. 68.354  Numbering and labeling requirements for terminal equipment.

    (a) Terminal equipment and protective circuitry that is subject to a 
Supplier's Declaration of Conformity or that is certified by a 
Telecommunications Certification Body shall have labels in a place and 
manner required by the Administrative Council for Terminal Attachments.
    (b) Terminal equipment labels shall include an identification 
numbering system in a manner required by the Administrative Council for 
Terminal Attachments.

[[Page 484]]

    (c) If the Administrative Council for Terminal Attachments chooses 
to continue the practice of utilizing a designated ``FCC'' number, it 
shall include in its labeling requirements a warning that the Commission 
no longer directly approves or registers terminal equipment.
    (d) Labeling developed for terminal equipment by the Administrative 
Council on Terminal Attachments shall contain sufficient information for 
providers of wireline telecommunications, the Federal Communications 
Commission, and the U.S. Customs Service to carry out their functions, 
and for consumers to easily identify the responsible party of their 
terminal equipment. The numbering and labeling scheme shall be 
nondiscriminatory, creating no competitive advantage for any entity or 
segment of the industry.
    (e) FCC numbering and labeling requirements existing prior to the 
effective date of these rules shall remain unchanged until the 
Administrative Council for Terminal Attachments publishes its numbering 
and labeling requirements.

[66 FR 7587, Jan. 24, 2001, as amended at 67 FR 57182, Sept. 9, 2002]



                     Subpart E_Complaint Procedures



Sec. Sec. 68.400-68.412  [Reserved]



Sec. 68.414  Hearing aid-compatibility: Enforcement.

    Enforcement of Sec. Sec. 68.4 and 68.112 is hereby delegated to 
those states which adopt those sections and provide for their 
enforcement. The procedures followed by a state to enforce those 
sections shall provide a 30-day period after a complaint is filed, 
during which time state personnel shall attempt to resolve a dispute on 
an informal basis. If a state has not adopted or incorporated Sec. Sec. 
68.4 and 68.112, or failed to act within 6 months from the filing of a 
complaint with the state public utility commission, the Commission will 
accept such complaints. A written notification to the complainant that 
the state believes action is unwarranted is not a failure to act.

[49 FR 1368, Jan. 11, 1984]



Sec. 68.415  Hearing aid-compatibility and volume control informal complaints.

    Persons with complaints under Sec. Sec. 68.4 and 68.112 that are 
not addressed by the states pursuant to Sec. 68.414, and all other 
complaints regarding rules in this part pertaining to hearing aid 
compatibility and volume control, may bring informal complaints as 
described in Sec. 68.416 through Sec. 68.420. All responsible parties 
of terminal equipment are subject to the informal complaint provisions 
specified in this section.

[66 FR 7587, Jan. 24, 2001]



Sec. 68.417  Informal complaints; form and content.

    (a) An informal complaint alleging a violation of hearing aid 
compatibility and/or volume control rules in this subpart may be 
transmitted to the Consumer Information Bureau by any reasonable means, 
e.g., letter, facsimile transmission, telephone (voice/TRS/TTY), 
Internet e-mail, ASCII text, audio-cassette recording, and Braille.
    (b) An informal complaint shall include:
    (1) The name and address of the complainant;
    (2) The name and address of the responsible party, if known, or the 
manufacturer or provider against whom the complaint is made;
    (3) A full description of the terminal equipment about which the 
complaint is made;
    (4) The date or dates on which the complainant purchased, acquired 
or used the terminal equipment about which the complaint is being made;
    (5) A complete statement of the facts, including documentation where 
available, supporting the complainant's allegation that the defendant 
has failed to comply with the requirements of this subpart;
    (6) The specific relief or satisfaction sought by the complainant, 
and
    (7) The complainant's preferred format or method of response to the 
complaint by the Commission and defendant (e.g., letter, facsimile 
transmission, telephone (voice/TRS/TTY), Internet e-mail, ASCII text, 
audio-cassette recording, Braille; or some other

[[Page 485]]

method that will best accommodate the complainant's disability).

[66 FR 7587, Jan. 24, 2001]



Sec. 68.418  Procedure; designation of agents for service.

    (a) The Commission shall promptly forward any informal complaint 
meeting the requirements of Sec. 68.17 to each responsible party named 
in or determined by the staff to be implicated by the complaint. Such 
responsible party or parties shall be called on to satisfy or answer the 
complaint within the time specified by the Commission.
    (b) To ensure prompt and effective service of informal complaints 
filed under this subpart, every responsible party of equipment approved 
pursuant to this part shall designate and identify one or more agents 
upon whom service may be made of all notices, inquiries, orders, 
decisions, and other pronouncements of the Commission in any matter 
before the Commission. Such designation shall be provided to the 
Commission and shall include a name or department designation, business 
address, telephone number, and, if available, TTY number, facsimile 
number, and Internet e-mail address. The Commission shall make this 
information available to the public.

[66 FR 7587, Jan. 24, 2001, as amended at 73 FR 25591, May 7, 2008]



Sec. 68.419  Answers to informal complaints.

    Any responsible party to whom the Commission or the Consumer 
Information Bureau under this subpart directs an informal complaint 
shall file an answer within the time specified by the Commission or the 
Consumer Information Bureau. The answer shall:
    (a) Be prepared or formatted in the manner requested by the 
complainant pursuant to Sec. 68.417, unless otherwise permitted by the 
Commission or the Consumer Information Bureau for good cause shown;
    (b) Describe any actions that the defendant has taken or proposes to 
take to satisfy the complaint;
    (c) Advise the complainant and the Commission or the Consumer 
Information Bureau of the nature of the defense(s) claimed by the 
defendant;
    (d) Respond specifically to all material allegations of the 
complaint; and
    (e) Provide any other information or materials specified by the 
Commission or the Consumer Information Bureau as relevant to its 
consideration of the complaint.

[66 FR 7587, Jan. 24, 2001]



Sec. 68.420  Review and disposition of informal complaints.

    (a) Where it appears from the defendant's answer, or from other 
communications with the parties, that an informal complaint has been 
satisfied, the Commission or the Consumer Information Bureau on 
delegated authority may, in its discretion, consider the informal 
complaint closed, without response to the complainant or defendant. In 
all other cases, the Commission or the Consumer Information Bureau shall 
inform the parties of its review and disposition of a complaint filed 
under this subpart. Where practicable, this information (the nature of 
which is specified in paragraphs (b) through (d) of this section, shall 
be transmitted to the complainant and defendant in the manner requested 
by the complainant, (e.g., letter, facsimile transmission, telephone 
(voice/TRS/TTY), Internet e-mail, ASCII text, audio-cassette recording, 
or Braille).
    (b) In the event the Commission or the Consumer and Governmental 
Affairs Bureau determines, based on a review of the information provided 
in the informal complaint and the defendant's answer thereto, that no 
further action is required by the Commission or the Consumer and 
Governmental Affairs Bureau with respect to the allegations contained in 
the informal complaint, the informal complaint shall be closed and the 
complainant and defendant shall be duly informed of the reasons 
therefor. A complainant, unsatisfied with the defendant's response to 
the informal complaint and the staff decision to terminate action on the 
informal complaint, may file a complaint with the Commission or the 
Enforcement Bureau as specified in Sec. Sec. 68.400 through 68.412.
    (c) In the event the Commission or the Consumer Information Bureau 
on delegated authority determines, based

[[Page 486]]

on a review of the information presented in the informal complaint and 
the defendant's answer thereto, that a material and substantial question 
remains as to the defendant's compliance with the requirements of this 
subpart, the Commission or the Consumer Information Bureau may conduct 
such further investigation or such further proceedings as may be 
necessary to determine the defendant's compliance with the requirements 
of this subpart and to determine what, if any, remedial actions and/or 
sanctions are warranted.
    (d) In the event that the Commission or the Consumer Information 
Bureau on delegated authority determines, based on a review of the 
information presented in the informal complaint and the defendant's 
answer thereto, that the defendant has failed to comply with or is 
presently not in compliance with the requirements of this subpart, the 
Commission or the Consumer Information Bureau on delegated authority may 
order or prescribe such remedial actions and/or sanctions as are 
authorized under the Act and the Commission's rules and which are deemed 
by the Commission or the Consumer Information Bureau on delegated 
authority to be appropriate under the facts and circumstances of the 
case.

[66 FR 7588, Jan. 24, 2001, as amended at 67 FR 13229, Mar. 21, 2002]



Sec. 68.423  Actions by the Commission on its own motion.

    The Commission may on its own motion conduct such inquiries and hold 
such proceedings as it may deem necessary to enforce the requirements of 
this subpart. The procedures to be followed by the Commission shall, 
unless specifically prescribed in the Act and the Commission's rules, be 
such as in the opinion of the Commission will best serve the purposes of 
such inquiries and proceedings.

[66 FR 7588, Jan. 24, 2001]

Subpart F [Reserved]



        Subpart G_Administrative Council for Terminal Attachments

    Source: 66 FR 7588, Jan. 24, 2001, unless otherwise noted.



Sec. 68.602  Sponsor of the Administrative Council for Terminal Attachments.

    (a) The Telecommunications Industry Association (TIA) and the 
Alliance for Telecommunications Industry Solutions (ATIS) jointly shall 
establish the Administrative Council for Terminal Attachment and shall 
sponsor the Administrative Council for Terminal Attachments for four 
years from the effective date of these rules. The division of duties by 
which this responsibility is executed may be a matter of agreement 
between these two parties; however, both are jointly and severally 
responsible for observing these rule provisions. After four years from 
the effective date of these rules, and thereafter on a quadrennial 
basis, the Administrative Council for Terminal Attachments may vote by 
simple majority to be sponsored by any ANSI-accredited organization.
    (b) The sponsoring organizations shall ensure that the 
Administrative Council for Terminal Attachments is populated in a manner 
consistent with the criteria of American National Standards Institute's 
Organization Method or the Standards Committee Method (and their 
successor Method or Methods as ANSI may from time to time establish) for 
a balanced and open membership.
    (c) After the Administrative Council for Terminal Attachments is 
populated, the sponsors are responsible for fulfilling secretariat 
positions as determined by the Administrative Council for Terminal 
Attachments. The Administrative Council shall post on a publicly 
available web site and make available to the public in hard copy form 
the written agreement into which it enters with the sponsor or sponsors.

[66 FR 7588, Jan. 24, 2001, as amended at 67 FR 57182, Sept. 9, 2002]



Sec. 68.604  Requirements for submitting technical criteria.

    (a) Any standards development organization that is accredited under 
the American National Standards Institute's Organization Method or the 
Standards Committee Method (and their successor Method or Methods as 
ANSI may from time to time establish) may establish technical criteria 
for terminal equipment pursuant to ANSI

[[Page 487]]

consensus decision-making procedures, and it may submit such criteria to 
the Administrative Council for Terminal Attachments.
    (b) Any ANSI-accredited standards development organization that 
develops standards for submission to the Administrative Council for 
Terminal Attachments must implement and use procedures for the 
development of those standards that ensure openness equivalent to the 
Commission rulemaking process.
    (c) Any standards development organization that submits standards to 
the Administrative Council for Terminal Attachments for publication as 
technical criteria shall certify to the Administrative Council for 
Terminal Attachments that:
    (1) The submitting standards development organization is ANSI-
accredited to the Standards Committee Method or the Organization Method 
(or their successor Methods as amended from time to time by ANSI);
    (2) The technical criteria that it proposes for publication do not 
conflict with any published technical criteria or with any technical 
criteria submitted and pending for publication, and
    (3) The technical criteria that it proposes for publication are 
limited to preventing harms to the public switched telephone network, 
identified in Sec. 68.3 of this part.



Sec. 68.608  Publication of technical criteria.

    The Administrative Council for Terminal Attachments shall place 
technical criteria proposed for publication on public notice for 30 
days. At the end of the 30 day public notice period, if there are no 
oppositions, the Administrative Council for Terminal Attachments shall 
publish the technical criteria.



Sec. 68.610  Database of terminal equipment.

    (a) The Administrative Council for Terminal Attachments shall 
operate and maintain a database of all approved terminal equipment. The 
database shall meet the requirements of the Federal Communications 
Commission and the U.S. Customs Service for enforcement purposes. The 
database shall be accessible by government agencies free of charge. 
Information in the database shall be readily available and accessible to 
the public, including individuals with disabilities, at nominal or no 
costs.
    (b) Responsible parties, whether they obtain their approval from a 
Telecommunications Certification Body or utilize the Supplier's 
Declaration of Conformity process, shall submit to the database 
administrator all information required by the Administrative Council for 
Terminal Attachments.
    (c) The Administrative Council for Terminal Attachments shall ensure 
that the database is created and maintained in an equitable and 
nondiscriminatory manner. The manner in which the database is created 
and maintained shall not permit any entity or segment of the industry to 
gain a competitive advantage.
    (d) The Administrative Council for Terminal Attachments shall file 
with the Commission, within 180 days of publication of these rules in 
the Federal Register, a detailed report of the structure of the 
database, including details of how the Administrative Council for 
Terminal Attachments will administer the database, the pertinent 
information to be included in the database, procedures for including 
compliance information in the database, and details regarding how the 
government and the public will access the information.



Sec. 68.612  Labels on terminal equipment.

    Terminal equipment certified by a Telecommunications Certification 
Body or approved by the Supplier's Declaration of Conformity under this 
part shall be labeled. The Administrative Council for Terminal 
Attachments shall establish appropriate labeling of terminal equipment. 
Labeling shall meet the requirements of the Federal Communications 
Commission and the U.S. Customs Service for their respective enforcement 
purposes, and of consumers for purposes of identifying the responsible 
party and model number.

[67 FR 57182, Sept. 9, 2002]

[[Page 488]]



Sec. 68.614  Oppositions and appeals.

    (a) Oppositions filed in response to the Administrative Council for 
Terminal Attachments' public notice of technical criteria proposed for 
publication must be received by the Administrative Council for Terminal 
Attachments within 30 days of public notice to be considered. 
Oppositions to proposed technical criteria shall be addressed through 
the appeals procedures of the authoring standards development 
organization and of the American National Standards Institute. If these 
procedures have been exhausted, the aggrieved party shall file its 
opposition with the Commission for de novo review.
    (b) As an alternative, oppositions to proposed technical criteria 
may be filed directly with the Commission for de novo review within the 
30 day public notice period.



PART 69_ACCESS CHARGES--Table of Contents



                            Subpart A_General

Sec.
69.1 Application of access charges.
69.2 Definitions.
69.3 Filing of access service tariffs.
69.4 Charges to be filed.
69.5 Persons to be assessed.

                    Subpart B_Computation of Charges

69.101 General.
69.104 End user common line for non-price cap incumbent local exchange 
          carriers.
69.105 Carrier common line for non-price cap local exchange carriers.
69.106 Local switching.
69.108 Transport rate benchmark.
69.109 Information.
69.110 Entrance facilities.
69.111 Tandem-switched transport and tandem charge.
69.112 Direct-trunked transport.
69.113 Non-premium charges for MTS-WATS equivalent services.
69.114 Special access.
69.115 Special access surcharges.
69.118 Traffic sensitive switched services.
69.119 Basic service element expedited approval process.
69.120 Line information database.
69.121 Connection charges for expanded interconnection.
69.123 Density pricing zones for special access and switched transport.
69.124 Interconnection charge.
69.125 Dedicated signalling transport.
69.128 Billing name and address.
69.129 Signalling for tandem switching.
69.130 Line port costs in excess of basic analog service.
69.131 Universal service end user charges.

 Subpart C_Computation of Charges for Price Cap Local Exchange Carriers

69.151 Applicability.
69.152 End user common line for price cap local exchange carriers.
69.153 Presubscribed interexchange carrier charge (PICC).
69.154 Per-minute carrier common line charge.
69.155 Per-minute residual interconnection charge.
69.156 Marketing expenses.
69.157 Line port costs in excess of basic, analog service.
69.158 Universal service and user charges.

                Subpart D_Apportionment of Net Investment

69.301 General.
69.302 Net investment.
69.303 Information origination/termination equipment (IOT).
69.304 Subscriber line cable and wire facilities.
69.305 Carrier cable and wire facilities (C&WF).
69.306 Central office equipment (COE).
69.307 General support facilities.
69.308 [Reserved]
69.309 Other investment.
69.310 Capital leases.

                   Subpart E_Apportionment of Expenses

69.401 Direct expenses.
69.402 Operating taxes (Account 7200).
69.403 Marketing expenses (Account 6610).
69.404 Telephone operator services expenses in Account 6620.
69.405 Published directory expenses in Account 6620.
69.406 Local business office expenses in Account 6620.
69.407 Revenue accounting expenses in Account 6620.
69.408 All other customer services expenses in Account 6620.
69.409 Corporate operations expenses (included in Account 6720).
69.411 Other expenses.
69.412 Non participating company payments/receipts.
69.413 Universal service fund expenses.
69.414 Lifeline assistance expenses.
69.415 Reallocation of certain transport expenses.

[[Page 489]]

    Subpart F_Segregation of Common Line Element Revenue Requirement

69.501 General.
69.502 Base factor allocation.

                 Subpart G_Exchange Carrier Association

69.601 Exchange carrier association.
69.602 Board of directors.
69.603 Association functions.
69.604 Billing and collection of access charges.
69.605 Reporting and distribution of pool access revenues.
69.606 Computation of average schedule company payments.
69.607 Disbursement of Carrier Common Line residue.
69.608 Carrier Common Line hypothetical net balance.
69.609 End User Common Line hypothetical net balances.
69.610 Other hypothetical net balances.

                      Subpart H_Pricing Flexibility

69.701 Application of rules in this subpart.
69.703 Definitions.
69.705 Procedure.
69.707 Geographic scope of petition.
69.709 Dedicated transport and special access services other than 
          channel terminations between LEC end offices and customer 
          premises.
69.711 Channel terminations between LEC end offices and customer 
          premises.
69.713 Common line, traffic-sensitive, and tandem-switched transport 
          services.
69.714-69.724 [Reserved]
69.725 Attribution of revenues to particular wire centers.
69.727 Regulatory relief.
69.729 New services.
69.731 Low-end adjustment mechanism.

    Authority: 47 U.S.C. 154, 201, 202, 203, 205, 218, 220, 254, 403.

    Source: 48 FR 10358, Mar. 11, 1983, unless otherwise noted.



                            Subpart A_General



Sec. 69.1  Application of access charges.

    (a) This part establishes rules for access charges for interstate or 
foreign access services provided by telephone companies on or after 
January 1, 1984.
    (b) Except as provided in Sec. 69.1(c), charges for such access 
service shall be computed, assessed, and collected and revenues from 
such charges shall be distributed as provided in this part. Access 
service tariffs shall be filed and supported as provided under part 61 
of this chapter, except as modified herein.
    (c) The following provisions of this part shall apply to telephone 
companies subject to price cap regulation only to the extent that 
application of such provisions is necessary to develop the nationwide 
average carrier common line charge, for purposes of reporting pursuant 
to Sec. Sec. 43.21 and 43.22 of this chapter, and for computing initial 
charges for new rate elements: Sec. Sec. 69.3(f), 69.106(b), 69.106(f), 
69.106(g), 69.109(b), 69.110(d), 69.111(c), 69.111(g)(1), 69.111(g)(2), 
69.111(g)(3), 69.111(l), 69.112(d), 69.114(b), 69.114(d), 69.125(b)(2), 
69.301 through 69.310, and 69.401 through 69.412. The computation of 
rates pursuant to these provisions by telephone companies subject to 
price cap regulation shall be governed by the price cap rules set forth 
in part 61 of this chapter and other applicable Commission rules and 
orders.
    (d) To the extent any provision contained in 47 CFR part 51 subparts 
H and J conflict with any provision of this part, the 47 CFR part 51 
provision supersedes the provision of this part.

[48 FR 10358, Mar. 11, 1983, as amended at 55 FR 42385, Oct. 19, 1990; 
58 FR 41189, Aug. 3, 1993; 62 FR 40463, July 29, 1997; 76 FR 73882, Nov. 
29, 2011]



Sec. 69.2  Definitions.

    For purposes of the part:
    (a) Access minutes or Access minutes of use is that usage of 
exchange facilities in interstate or foreign service for the purpose of 
calculating chargeable usage. On the originating end of an interstate or 
foreign call, usage is to be measured from the time the originating end 
user's call is delivered by the telephone company and acknowledged as 
received by the interexchange carrier's facilities connected with the 
originating exchange. On the terminating end of an interstate or foreign 
call, usage is to be measured from the time the call is received by the 
end user in the terminating exchange. Timing of usage at both the 
originating and terminating end of an interstate or foreign call shall 
terminate when the calling or called party disconnects, whichever event 
is recognized first in the originating and terminating end exchanges, as 
applicable.

[[Page 490]]

    (b) Access service includes services and facilities provided for the 
origination or termination of any interstate or foreign 
telecommunication.
    (c) Annual revenue requirement means the sum of the return component 
and the expense component.
    (d) Association means the telephone company association described in 
subpart G of this part.
    (e) Big Three Expenses are the combined expense groups comprising: 
Plant Specific Operations Expense, Accounts 6110, 6120, 6210, 6220, 
6230, 6310 and 6410; Plant Nonspecific Operations Expenses, Accounts 
6510, 6530 and 6540, and Customer Operations Expenses, Accounts 6610 and 
6620.
    (f) Big Three Expense Factors are the ratios of the sum of Big Three 
Expenses apportioned to each element or category to the combined Big 
Three Expenses.
    (g) Cable and wire facilities includes all equipment or facilities 
that are described as cable and wire facilities in the Separations 
Manual and included in Account 2410.
    (h) Carrier cable and wire facilities means all cable and wire 
facilities that are not subscriber line cable and wire facilities.
    (i) Central Office Equipment or COE includes all equipment or 
facilities that are described as Central Office Equipment in the 
Separations Manual and included in Accounts 2210, 2220 and 2230.
    (j) Corporate operations expenses are included in General and 
Administrative Expenses (Account 6720).
    (k) Customer operations expenses include Marketing and Services 
expenses in Accounts 6610 and 6620, respectively.
    (l) Direct expense means expenses that are attributable to a 
particular category or categories of tangible investment described in 
subpart D of this part and includes:
    (1) Plant Specific Operations expenses in Accounts 6110, 6120, 6210, 
6220, 6230, 6310 and 6410; and
    (2) Plant Nonspecific Operations Expenses in Accounts 6510, 6530, 
6540 and 6560.
    (m) End user means any customer of an interstate or foreign 
telecommunications service that is not a carrier except that a carrier 
other than a telephone company shall be deemed to be an ``end user'' 
when such carrier uses a telecommunications service for administrative 
purposes and a person or entity that offers telecommunications services 
exclusively as a reseller shall be deemed to be an ``end user'' if all 
resale transmissions offered by such reseller originate on the premises 
of such reseller.
    (n) Entry switch means the telephone company switch in which a 
transport line or trunk terminates.
    (o) Expense component means the total expenses and income charges 
for an annual period that are attributable to a particular element or 
category.
    (p) Expenses include allowable expenses in the Uniform System of 
Accounts, part 32, apportioned to interstate or international services 
pursuant to the Separations Manual and allowable income charges 
apportioned to interstate and international services pursuant to the 
Separations Manual.
    (q) General support facilities include buildings, land, vehicles, 
aircraft, work equipment, furniture, office equipment and general 
purpose computers as described in the Separations Manual and included in 
Account 2110.
    (r) Information origination/termination equipment includes all 
equipment or facilities that are described as information origination/
termination equipment in the Separations Manual and in Account 2310 
except information origination/termination equipment that is used by 
telephone companies in their own operations.
    (s) Interexchange or the interexchange category includes services or 
facilities provided as an integral part of interstate or foreign 
telecommunications that is not described as ``access service'' for 
purposes of this part.
    (t) Level I Contributors. Telephone companies that are not 
association Common Line tariff participants, file their own Common Line 
tariffs effective April 1, 1989, and had a lower than average Common 
Line revenue requirement per minute of use in 1988 and thus were net 
contributors (i.e., had a negative net balance) to the association 
Common Line pool in 1988.
    (u) Level I Receivers. Telephone companies that are not association 
Common Line tariff participants, file their own Common Line tariffs 
effective

[[Page 491]]

April 1, 1989, and had a higher than average Common Line revenue 
requirement per minute of use in 1988 and thus were net receivers (i.e., 
had a positive net balance) from the association Common Line Pool in 
1988.
    (v) Level II Contributors. A telephone company or group of 
affiliated telephone companies with fewer than 300,000 access lines and 
less than $150 million in annual operating revenues that is not an 
association Common Line tariff participant, that files its own Common 
Line tariff effective July 1, 1990, and that had a lower than average 
Common Line revenue requirement per minute of use in 1988 and thus was a 
net contributor (i.e., had a negative net balance) to the association 
Common Line pool in 1988.
    (w) Level II Receivers. A telephone company or group of affiliated 
telephone companies with fewer than 300,000 access lines and less than 
$150 million in annual operating revenues that is not an association 
Common Line tariff participant, that files its own Common Line tariff 
effective July 1, 1990, and that had a higher than average Common Line 
revenue requirement per minute of use in 1988 and thus was a net 
receiver (i.e., had a positive net balance) from the association Common 
Line pool in 1988.
    (x) Line or Trunk includes, but is not limited to, transmission 
media such as radio, satellite, wire, cable and fiber optic cable means 
of transmission.
    (y) [Reserved]
    (z) Net investment means allowable original cost investment in 
Accounts 2001 through 2003, 1220 and the investments in nonaffiliated 
companies included in Account 1410, that has been apportioned to 
interstate and foreign services pursuant to the Separations Manual from 
which depreciation, amortization and other reserves attributable to such 
investment that has been apportioned to interstate and foreign services 
pursuant to the Separations Manual have been subtracted and to which 
working capital that is attributable to interstate and foreign services 
has been added.
    (aa) Operating taxes include all taxes in Account 7200;
    (bb) Origination of a service that is switched in a Class 4 switch 
or an interexchange switch that performs an equivalent function ends 
when the transmission enters such switch and termination of such a 
service begins when the transmission leaves such a switch, except that;
    (1) Switching in a Class 4 switch or transmission between Class 4 
switches that is not deemed to be interexchange for purposes of the 
Modified Final Judgement entered August 24, 1982, in United States v 
Western Electric Co., D.C. Civil Action No. 82-0192, will be 
``origination'' or ``termination'' for purposes of this part; and
    (2) Origination and Termination does not include the use of any part 
of a line, trunk or switch that is not owned or leased by a telephone 
company.
    (cc) Origination of any service other than a service that is 
switched in a Class 4 switch or a switch that performs an equivalent 
function ends and ``termination'' of any such service begins at a point 
of demarcation that corresponds with the point of demarcation that is 
used for a service that is switched in a Class 4 switch or a switch that 
performs an equivalent function.
    (dd) Private line means a line that is used exclusively for an 
interexchange service other than MTS, WATS or an MTS-WATS equivalent 
service, including a line that is used at the closed end of an FX WATS 
or CCSA service or any service that is substantially equivalent to a 
CCSA service.
    (ee) Public telephone is a telephone provided by a telephone company 
through which an end user may originate interstate or foreign 
telecommunications for which he pays with coins or by credit card, 
collect or third number billing procedures.
    (ff) Return component means net investment attributable to a 
particular element or category multiplied by the authorized annual rate 
of return.
    (gg) Subscriber line cable and wire facilities means all lines or 
trunks on the subscriber side of a Class 5 or end office switch, 
including lines or trunks that do not terminate in such a switch, except 
lines or trunks that connect an interexchange carrier.
    (hh) Telephone company or Local exchange carrier as used in this 
part means an incumbent local exchange carrier as defined in section 
251(h)(1) of

[[Page 492]]

the 1934 Act as amended by the 1996 Act.
    (ii) Transitional support (TRS) means funds provided by telephone 
companies that are not association Common Line tariff participants, but 
were net contributors to the association Common Line pool in 1988, to 
telephone companies that are not association Common Line tariff 
participants and were net receivers from the association Common Line 
pool in 1988.
    (jj) Unit of capacity means the capability to transmit one 
conversation.
    (kk) WATS access line means a line or trunk that is used exclusively 
for WATS service.
    (ll) Equal access investment and equal access expenses mean equal 
access investment and expenses as defined for purposes of the part 36 
separations rules.
    (mm) Basic service elements are optional unbundled features that 
enhanced service providers may require or find useful in the provision 
of enhanced services, as defined in Amendments of part 69 of the 
Commission's rules relating to the Creation of Access Charge Subelements 
for Open Network Architecture, Report and Order, 6 FCC Rcd --------, CC 
Docket No. 89-79, FCC 91-186 (1991).
    (nn) Dedicated signalling transport means transport of out-of-band 
signalling information between an interexchange carrier or other 
person's common channel signalling network and a telephone company's 
signalling transport point on facilities dedicated to the use of a 
single customer.
    (oo) Direct-trunked transport means transport on circuits dedicated 
to the use of a single interexchange carrier or other person, without 
switching at the tandem,
    (1) Between the serving wire center and the end office, or
    (2) Between two customer-designated telephone company offices.
    (pp) End office means the telephone company office from which the 
end user receives exchange service.
    (qq) Entrance facilities means transport from the interexchange 
carrier or other person's point of demarcation to the serving wire 
center.
    (rr) Serving wire center means the telephone company central office 
designated by the telephone company to serve the geographic area in 
which the interexchange carrier or other person's point of demarcation 
is located.
    (ss) Tandem-switched transport means transport of traffic that is 
switched at a tandem switch--
    (1) Between the serving wire center and the end office, or
    (2) Between the telephone company office containing the tandem 
switching equipment, as described in Sec. 36.124 of this chapter, and 
the end office.

Tandem-switched transport between a serving wire center and an end 
office consists of circuits dedicated to the use of a single 
interexchange carrier or other person from the serving wire center to 
the tandem (although this dedicated link will not exist if the serving 
wire center and the tandem are located in the same place) and circuits 
used in common by multiple interexchange carriers or other persons from 
the tandem to the end office.
    (tt) [Reserved]
    (uu) Price cap regulation means the method of regulation of dominant 
carriers provided in Sec. Sec. 61.41 through 61.49 of this chapter.
    (vv) Signalling for tandem switching means the carrier 
identification code (CIC) and the OZZ code, or equivalent information 
needed to perform tandem switching functions. The CIC identifies the 
interexchange carrier and the OZZ identifies the interexchange carrier 
trunk to which traffic should be routed.
    (ww) Interstate common line support (ICLS) means funds that are 
provided pursuant to Sec. 54.901 of this chapter.

[52 FR 37309, Oct. 6, 1987]

    Editorial Note: For Federal Register citations affecting Sec. 69.2, 
see the List of CFR Sections Affected, which appears in the Finding Aids 
section of the printed volume and at www.fdsys.gov.



Sec. 69.3  Filing of access service tariffs.

    (a) Except as provided in paragraphs (g) and (h) of this section, a 
tariff for access service shall be filed with this Commission for a two-
year period. Such tariffs shall be filed with a scheduled effective date 
of July 1. Such tariff filings shall be limited to rate level changes.

[[Page 493]]

    (b) The requirements imposed by paragraph (a) of this section shall 
not preclude the filing of revisions to those annual tariffs that will 
become effective on dates other than July 1.
    (c) Any access service tariff filing, the filing of any petitions 
for rejection, investigation or suspension and the filing of any 
responses to such petitions shall comply with the applicable rules of 
this Commission relating to tariff filings.
    (d) The association shall file a tariff as agent for all telephone 
companies that participate in an association tariff.
    (e) A telephone company or group of telephone companies may file a 
tariff that is not an association tariff. Such a tariff may cross-
reference the association tariff for some access elements and include 
separately computed charges of such company or companies for other 
elements. Any such tariff must comply with the requirements hereinafter 
provided:
    (1) Such a tariff must cross reference association charges for the 
Carrier Common Line and End User Common Line element or elements if such 
company or companies participate in the pooling of revenues and revenue 
requirements for such elements.
    (2) Such a tariff that cross-references an association charge for 
any end user access element must cross-reference association charges for 
all end user access elements;
    (3) Such a tariff that cross-references an association charge for 
any carrier's carrier access element other than the Carrier Common Line 
element must cross-reference association charges for all carrier's 
carrier access charges other than the Carrier Common Line element;
    (4) Except for charges subject to price cap regulation as that term 
is defined in Sec. 61.3(v) of this chapter, any charge in such a tariff 
that is not an association charge must be computed to reflect the 
combined investment and expenses of all companies that participate in 
such a charge;
    (5) A telephone company or companies that elect to file such a 
tariff for 1984 access charges shall notify AT&T on or before the 40th 
day after the release of the Commission order adopting this part;
    (6) Except as provided in paragraph (e)(12) of this section, a 
telephone company or companies that elect to file such a tariff shall 
notify the association not later than March 1 of the year the tariff 
becomes effective, if such company or companies did not file such a 
tariff in the preceding biennial period or cross-reference association 
charges in such preceding period that will be cross-referenced in the 
new tariff. A telephone company or companies that elect to file such a 
tariff not in the biennial period shall file its tariff to become 
effective July 1 for a period of one year. Thereafter, such telephone 
company or companies must file its tariff pursuant to paragraphs (f)(1) 
or (f)(2) of this section.
    (7) Such a tariff shall not contain charges for any access elements 
that are disaggregated or deaveraged within a study area that is used 
for purposes of jurisdictional separations, except as otherwise provided 
in this chapter.
    (8) Such a tariff shall not contain charges included in the billing 
and collection category.
    (9) Except as provided in paragraph (e)(12) of this section, a 
telephone company or group of affiliated telephone companies that elects 
to file its own Carrier Common Line tariff pursuant to paragraph (a) of 
this section shall notify the association not later than March 1 of the 
year the tariff becomes effective that it will no longer participate in 
the association tariff. A telephone company or group of affiliated 
telephone companies that elects to file its own Carrier Common Line 
tariff for one of its study areas shall file its own Carrier Common Line 
tariff(s) for all of its study areas.
    (10) Any data supporting a tariff that is not an association tariff 
shall be consistent with any data that the filing carrier submitted to 
the association.
    (11) Any changes in Association common line tariff participation and 
Long Term and Transitional Support resulting from the merger or 
acquisition of telephone properties are to be made effective on the next 
annual access tariff

[[Page 494]]

filing effective date following consummation of the merger or 
acquisition transaction, in accordance with the provisions of Sec. 
69.3(e)(9).
    (12)(i) A local exchange carrier, or a group of affiliated carriers 
in which at least one carrier is engaging in access stimulation, as that 
term is defined in Sec. 61.3(bbb) of this chapter, shall file its own 
access tariffs within forty-five (45) days of commencing access 
stimulation, as that term is defined in Sec. 61.3(bbb) of this chapter, 
or within forty-five (45) days of December 29, 2011 if the local 
exchange carrier on that date is engaged in access stimulation, as that 
term is defined in Sec. 61.3(bbb) of this chapter.
    (ii) Notwithstanding paragraphs (e)(6) and (e)(9) of this section, a 
local exchange carrier, or a group of affiliated carriers in which at 
least one carrier is engaging in access stimulation, as that term is 
defined in Sec. 61.3(bbb) of this chapter, must withdraw from all 
interstate access tariffs issued by the association within forty-five 
(45) days of engaging in access stimulation, as that term is defined in 
Sec. 61.3(bbb) of this chapter, or within forty-five (45) days of 
December 29, 2011 if the local exchange carrier on that date is engaged 
in access stimulation, as that term is defined in Sec. 61.3(bbb) of 
this chapter.
    (iii) Any such carrier(s) shall notify the association when it 
begins access stimulation, or on December 29, 2011 if it is engaged in 
access stimulation, as that term is defined in Sec. 61.3(bbb) of this 
chapter, on that date, of its intent to leave the association tariffs 
within forty-five (45) days.
    (f)(1) A tariff for access service provided by a telephone company 
that is required to file an access tariff pursuant to Sec. 61.38 of 
this Chapter shall be filed for a biennial period and with a scheduled 
effective date of July 1 of any even numbered year.
    (2) A tariff for access service provided by a telephone company that 
may file an access tariff pursuant to Sec. 61.39 of this Chapter shall 
be filed for a biennial period and with a scheduled effective date of 
July 1 of any odd numbered year. Any such telephone company that does 
not elect to file an access tariff pursuant to the Sec. 61.39 
procedures, and does not participate in the Association tariff, and does 
not elect to become subject to price cap regulation, must file an access 
tariff pursuant to Sec. 61.38 for a biennial period and with a 
scheduled effective date of July 1 of any even numbered year.
    (3) For purposes of computing charges for access elements other than 
Common Line elements to be effective on July 1 of any even-numbered 
year, the association may compute rate changes based upon statistical 
methods which represent a reasonable equivalent to the cost support 
information otherwise required under part 61 of this chapter.
    (g) The following rules apply to telephone company participation in 
the Association common line pool for telephone companies involved in a 
merger or acquisition.
    (1) Notwithstanding the requirements of Sec. 69.3(e)(9), any 
Association common line tariff participant that is party to a merger or 
acquisition may continue to participate in the Association common line 
tariff.
    (2) Notwithstanding the requirements of Sec. 69.3(e)(9), any 
Association common line tariff participant that is party to a merger or 
acquisition may include other telephone properties involved in the 
transaction in the Association common line tariff, provided that the net 
addition of common lines to the Association common line tariff resulting 
from the transaction in not greater than 50,000, and provided further 
that, if any common lines involved in a merger or acquisition are 
returned to the Association common line tariff, all of the common lines 
involved in the merger or acquisition must be returned to the 
Association common line tariff.
    (3) Telephone companies involved in mergers or acquisitions that 
wish to have more than 50,000 common lines reenter the Association 
common line pool must request a waiver of Sec. 69.3(e)(9). If the 
telephone company has met all other legal obligations, the waiver 
request will be deemed granted on the sixty-first (61st) day from the 
date of public notice inviting comment on the requested waiver unless:
    (i) The merger or acquisition involves one or more partial study 
areas;

[[Page 495]]

    (ii) The waiver includes a request for confidentiality of some or 
all of the materials supporting the request;
    (iii) The waiver includes a request to return only a portion of the 
telephone properties involved in the transaction to the Association 
common line tariff;
    (iv) The Commission rejects the waiver request prior to the 
expiration of the sixty-day period;
    (v) The Commission requests additional time or information to 
process the waiver application prior to the expiration of the sixty-day 
period; or
    (vi) A party, in a timely manner, opposes a waiver request or seeks 
conditional approval of the waiver in response to our public notice of 
the waiver request.
    (h) Local exchange carriers subject to price cap regulation as that 
term is defined in Sec. 61.3(ee) of this chapter, shall file with this 
Commission a price cap tariff for access service for an annual period. 
Such tariffs shall be filed to meet the notice requirements of Sec. 
61.58 of this chapter, with a scheduled effective date of July 1. Such 
tariff filings shall be limited to changes in the Price Cap Indexes, 
rate level changes (with corresponding adjustments to the affected 
Actual Price Indexes and Service Band Indexes), and the incorporation of 
new services into the affected indexes as required by Sec. 61.49 of 
this chapter.
    (i) The following rules apply to the withdrawal from Association 
tariffs under the provision of paragraph (e)(6) or (e)(9) of this 
section or both by telephone companies electing to file price cap 
tariffs pursuant to paragraph (h) of this section.
    (1) In addition to the withdrawal provisions of paragraphs (e)(6) 
and (e)(9) of this section, a telephone company or group of affiliated 
companies that participates in one or more association tariffs during 
the current tariff year and that elects to file price cap tariffs or 
optional incentive regulation tariffs effective July 1 of the following 
tariff year shall notify the association by March 1 of the following 
tariff year that it is withdrawing from association tariffs, subject to 
the terms of this section, to participate in price cap regulation or 
optional incentive regulation.
    (2) The Association shall maintain records of such withdrawals 
sufficient to discharge its obligations under these Rules and to detect 
efforts by such companies or their affiliates to rejoin any Association 
tariffs in violation of the provisions of paragraph (i)(4) of this 
section.
    (3) Notwithstanding the provisions of paragraphs (e) (3), (6), and 
(9) of this section, in the event a telephone company withdraws from all 
Association tariffs for the purpose of filing price cap tariffs or 
optional incentive plan tariffs, such company shall exclude from such 
withdrawal all ``average schedule'' affiliates and all affiliates so 
excluded shall be specified in the withdrawal. However, such company may 
include one or more ``average schedule'' affiliates in price cap 
regulation or optional incentive plan regulation provided that each 
price cap or optional incentive plan affiliate relinquishes ``average 
schedule'' status and withdraws from all Association tariffs and any 
tariff filed pursuant to Sec. 61.39(b)(2) of this chapter. See 
generally Sec. Sec. 69.605(c), 61.39(b) of this chapter; MTS and WATS 
Market Structure: Average Schedule Companies, Report and Order, 103 FCC 
2d 1026-1027 (1986).
    (4) If a telephone company elects to withdraw from Association 
tariffs and thereafter becomes subject to price cap regulation as that 
term is defined in Sec. 61.3(v) of this chapter, neither such telephone 
company nor any of its withdrawing affiliates shall thereafter be 
permitted to participate in any Association tariffs.
    (j) [Reserved]

(47 U.S.C. 154 (i) and (j), 201, 202, 203, 205, 218 and 403 and 5 U.S.C. 
553)

[48 FR 10358, Mar. 11, 1983]

    Editorial Note: For Federal Register citations affecting Sec. 69.3, 
see the List of CFR Sections Affected, which appears in the Finding Aids 
section of the printed volume and at www.fdsys.gov.



Sec. 69.4  Charges to be filed.

    (a) The end user charges for access service filed with this 
Commission shall include charges for the End User Common Line element, 
and for line port costs in excess of basic, analog service.

[[Page 496]]

    (b) Except as provided in paragraphs (c), (e), and (h) of this 
section, and in Sec. 69.118, the carrier's carrier charges for access 
service filed with this Commission shall include charges for each of the 
following elements:
    (1) [Reserved]
    (2) Carrier common line, provided that after June 30, 2003, non-
price cap local exchange carriers may not assess a carrier common line 
charge;
    (3) Local switching;
    (4) Information;
    (5) Tandem-switched transport;
    (6) Direct-trunked transport;
    (7) Special access; and
    (8) Line information database;
    (9) Entrance facilities.
    (c) [Reserved]
    (d) Recovery of Contributions to the Universal Service Support 
Mechanisms by Incumbent Local Exchange Carriers.
    (1) [Reserved]
    (2)(i) Local exchange carriers may recover their contributions to 
the universal service support mechanisms only through explicit, 
interstate, end-user charges assessed pursuant to either Sec. 69.131 or 
Sec. 69.158 that are equitable and nondiscriminatory.
    (ii) Local exchange carriers may not recover any of their 
contributions to the universal service support mechanisms through access 
charges imposed on interexchange carriers.
    (e) The carrier's carrier charges for access service filed with this 
Commission by the telephone companies specified in Sec. 64.1401(a) of 
this chapter shall include an element for connection charges for 
expanded interconnection. The carrier's carrier charges for access 
service filed with this Commission by the telephone companies not 
specified in Sec. 64.1401(a) of this chapter may include an element for 
connection charges for expanded interconnection.
    (f) [Reserved]
    (g) Local exchange carriers may establish appropriate rate elements 
for a new service, within the meaning of Sec. 61.3(x) of this chapter, 
in any tariff filing.
    (h) In addition to the charges specified in paragraph (b) of this 
section, the carrier's carrier charges for access service filed with 
this Commission by price cap local exchange carriers shall include 
charges for each of the following elements:
    (1) Presubscribed interexchange carrier;
    (2) Per-minute residual interconnection;
    (3) Dedicated local switching trunk port;
    (4) Shared local switching trunk pork;
    (5) Dedicated tandem switching trunk port;
    (6) [Reserved]
    (7) Multiplexers associated with tandem switching.
    (i) Paragraphs (b) and (h) of this section are not applicable to a 
price cap local exchange carrier to the extent that it has been granted 
the pricing flexibility in Sec. 69.727(b)(1).
    (j) In addition to the charges specified in paragraph (b) of this 
section, the carrier's carrier charges for access service filed with 
this Commission by non-price cap local exchange carriers may include 
charges for each of the following elements:
    (1) Dedicated local switching trunk port;
    (2) Shared local switching trunk port;
    (3) Dedicated tandem switching trunk port;
    (4) Multiplexers associated with tandem switching;
    (5) DS1/voice grade multiplexers associated with analog switches; 
and
    (6) Per-message call setup.

[48 FR 43017, Sept. 21, 1983]

    Editorial Note: For Federal Register citations affecting Sec. 69.4, 
see the List of CFR Sections Affected, which appears in the Finding Aids 
section of the printed volume and at www.fdsys.gov.



Sec. 69.5  Persons to be assessed.

    (a) End user charges shall be computed and assessed upon public end 
users, and upon providers of public telephones, as defined in this 
subpart, and as provided in subpart B of this part.
    (b) Carrier's carrier charges shall be computed and assessed upon 
all interexchange carriers that use local exchange switching facilities 
for the provision of interstate or foreign telecommunications services.

[[Page 497]]

    (c) Special access surcharges shall be assessed upon users of 
exchange facilities that interconnect these facilities with means of 
interstate or foreign telecommunications to the extent that carrier's 
carrier charges are not assessed upon such interconnected usage. As an 
interim measure pending the development of techniques accurately to 
measure such interconnected use and to assess such charges on a 
reasonable and non-discriminatory basis, telephone companies shall 
assess special access surcharges upon the closed ends of private line 
services and WATS services pursuant to the provisions of Sec. 69.115 of 
this part.
    (d) [Reserved]

(47 U.S.C. 154 (i) and (j), 201, 202, 203, 205, 218 and 403 and 5 U.S.C. 
553)

[48 FR 43017, Sept. 21, 1983, as amended at 51 FR 10840, Mar. 31, 1986; 
51 FR 33752, Sept. 23, 1986; 52 FR 21540, June 8, 1987; 54 FR 50624, 
Dec. 8, 1989; 61 FR 65364, Dec. 12, 1996; 64 FR 60359, Nov. 5, 1999]



                    Subpart B_Computation of Charges



Sec. 69.101  General.

    Except as provided in Sec. 69.1 and subpart C of this part, charges 
for each access element shall be computed and assessed as provided in 
this subpart.

[55 FR 42386, Oct. 19, 1990]



Sec. 69.104  End user common line for non-price cap incumbent local exchange 

carriers.

    (a) This section is applicable only to incumbent local exchange 
carriers that are not subject to price cap regulation as that term is 
defined in Sec. 61.3(ee) of this chapter. A charge that is expressed in 
dollars and cents per line per month shall be assessed upon end users 
that subscribe to local exchange telephone service or Centrex service to 
the extent they do not pay carrier common line charges. A charge that is 
expressed in dollars and cents per line per month shall be assessed upon 
providers of public telephones. Such charges shall be assessed for each 
line between the premises of an end user, or public telephone location, 
and a Class 5 office that is or may be used for local exchange service 
transmissions.
    (b) Charges to multi-line subscribers shall be computed by 
multiplying a single line rate by the number of lines used by such 
subscriber.
    (c) Until December 31, 2001, except as provided in paragraphs (d) 
through (h) of this section, the single-line rate or charge shall be 
computed by dividing one-twelfth of the projected annual revenue 
requirement for the End User Common Line element by the projected 
average number of local exchange service subscriber lines in use during 
such annual period.
    (d)(1) Until December 31, 2001, if the monthly charge computed in 
accordance with paragraph (c) of this section exceeds $6, the charge for 
each local exchange service subscriber line, except a residential line, 
a single-line business line, or a line used for Centrex-CO service that 
was in place or on order as of July 27, 1983, shall be $6.
    (2) Until December 31, 2001, the charge for each subscriber line 
associated with a public telephone shall be equal to the monthly charge 
computed in accordance with paragraph (d)(1) of this section.
    (e) Until December 31, 2001, the monthly charge for each residential 
and single-line business local exchange service subscriber shall be the 
charge computed in accordance with paragraph (c) of this section, or 
$3.50, whichever is lower.
    (f) Except as provided in Sec. 54.403 of this chapter, the charge 
for each residential local exchange service subscriber line shall be the 
same as the charge for each single-line business local exchange service 
subscriber line.
    (g) A line shall be deemed to be a residential line if the 
subscriber pays a rate for such line that is described as a residential 
rate in the local exchange service tariff.
    (h) A line shall be deemed to be a single line business line if the 
subscriber pays a rate that is not described as a residential rate in 
the local exchange service tariff and does not obtain more than one such 
line from a particular telephone company.
    (i) The End User Common Line charge for each multi-party subscriber 
shall be assessed as if such subscriber had subscribed to single-party 
service.
    (j)-(l) [Reserved]

[[Page 498]]

    (m) No charge shall be assessed for any WATS access line.
    (n)(1) Beginning January 1, 2002, except as provided in paragraph 
(r) of this section, the maximum monthly charge for each residential or 
single-line business local exchange service subscriber line shall be the 
lesser of:
    (i) One-twelfth of the projected annual revenue requirement for the 
End User Common Line element divided by the projected average number of 
local exchange service subscriber lines in use during such annual 
period; or
    (ii) The following:
    (A) Beginning January 1, 2002, $5.00.
    (B) Beginning July 1, 2002, $6.00.
    (C) Beginning July 1, 2003, $6.50.
    (2) In the event that GDP-PI exceeds 6.5% or is less than 0%, the 
maximum monthly charge in paragraph (n)(1)(ii) of this section will be 
adjusted in the same manner as the adjustment in Sec. 69.152(d)(2).
    (o)(1) Beginning on January 1, 2002, except as provided in paragraph 
(r) of this section, the maximum monthly End User Common Line Charge for 
multi-line business lines will be the lesser of:
    (i) $9.20; or
    (ii) One-twelfth of the projected annual revenue requirement for the 
End User Common Line element divided by the projected average number of 
local exchange service subscriber lines in use during such annual 
period;
    (2) In the event that GDP-PI is greater than 6.5% or is less than 
0%, the maximum monthly charge in paragraph (o)(1)(i) of this section 
will be adjusted in the same manner as the adjustment in Sec. 
69.152(k)(2).
    (p) Beginning January 1, 2002, non-price cap local exchange carriers 
shall assess:
    (1) No more than one End User Common Line charge as calculated under 
the applicable method under paragraph (n) of this section for Basic Rate 
Interface integrated services digital network (ISDN) service.
    (2) No more than five End User Common Line charges as calculated 
under paragraph (o) of this section for Primary Rate Interface ISDN 
service.
    (q) In the event a non-price cap local exchange carrier charges less 
than the maximum End User Common Line charge for any subscriber lines, 
the carrier may not recover the difference between the amount collected 
and the maximum from carrier common line charges, Interstate Common Line 
Support, or Long Term Support.
    (r) End User Common Line charge deaveraging. Beginning on January 1, 
2002, non-price cap local exchange carriers may geographically deaverage 
End User Common Line charges subject to the following conditions.
    (1) In order for a non-price cap local exchange carrier to be 
allowed to deaverage End User Common Line charges within a study area, 
the non-price cap local exchange carrier must have:
    (i) State commission-approved geographically deaveraged rates for 
UNE loops within that study area; or
    (ii) A universal service support disaggregation plan established 
pursuant to Sec. 54.315 of this chapter.
    (2) All geographic deaveraging of End User Common Line charges by 
customer class within a study area must be according to the state 
commission-approved UNE loop zone, or the universal service support 
disaggregation plan established pursuant to Sec. 54.315 of this 
chapter.
    (3) Within a given zone, Multi-line Business End User Common Line 
rates cannot fall below Residential and Single-Line Business rates.
    (4) For any given class of customer in any given zone, the End User 
Common Line Charge in that zone must be greater than or equal to the End 
User Common Line charge in the zone with the next lower cost per line.
    (5) A non-price cap local exchange carrier shall not receive more 
through deaveraged End User Common Line charges than it would have 
received if it had not deaveraged its End User Common Line charges.
    (6) Maximum charge. The maximum zone deaveraged End User Common Line 
Charge that may be charged in any zone is the applicable cap specified 
in paragraphs (n) or (o) of this section.
    (7) Voluntary Reductions. A ``Voluntary Reduction'' is one in which 
the non-price cap local exchange carrier charges End User Common Line 
rates below the maximum charges specified

[[Page 499]]

in paragraphs (n)(1) or (o)(1) of this section other than through offset 
of net increases in End User Common Line charge revenues or through 
increases in other zone deaveraged End User Common Line charges.

[48 FR 10358, Mar. 11, 1983, as amended at 48 FR 43018, Sept. 21, 1983; 
52 FR 21540, June 8, 1987; 53 FR 28395, July 28, 1988; 61 FR 65364, Dec. 
12, 1996; 62 FR 31933, June 11, 1997; 62 FR 32962, June 17, 1997; 66 FR 
59730, Nov. 30, 2001]



Sec. 69.105  Carrier common line for non-price cap local exchange carriers.

    (a) This section is applicable only to local exchange carriers that 
are not subject to price cap regulation as that term is defined in Sec. 
61.3(ee) of this chapter. Until June 30, 2003, a charge that is 
expressed in dollars and cents per line per access minute of use shall 
be assessed upon all interexchange carriers that use local exchange 
common line facilities for the provision of interstate or foreign 
telecommunications services, except that the charge shall not be 
assessed upon interexchange carriers to the extent they resell MTS or 
MTS-type services of other common carriers (OCCs).
    (b)(1) For purposes of this section and Sec. 69.113:
    (i) A carrier or other person shall be deemed to receive premium 
access if access is provided through a local exchange switch that has 
the capability to provide access for an MTS-WATS equivalent service that 
is substantially equivalent to the access provided for MTS or WATS, 
except that access provided for an MTS-WATS equivalent service that does 
not use such capability shall not be deemed to be premium access until 
six months after the carrier that provides such MTS-WATS equivalent 
service receives actual notice that such equivalent access is or will be 
available at such switch;
    (ii) The term open end of a call describes the origination or 
termination of a call that utilizes exchange carrier common line plant 
(a call can have no, one, or two open ends); and
    (iii) All open end minutes on calls with one open end (e.g., an 800 
or FX call) shall be treated as terminating minutes.
    (2) For association Carrier Common Line tariff participants:
    (i) The premium originating Carrier Common Line charge shall be one 
cent per minute, except as described in Sec. 69.105(b)(3), and
    (ii) The premium terminating Carrier Common Line charge shall be 
computed as follows:
    (A) For each telephone company subject to price cap regulation, 
multiply the company's proposed premium originating rate by a number 
equal to the sum of the premium originating base period minutes and a 
number equal to 0.45 multiplied by the non-premium originating base 
period minutes of that telephone company;
    (B) For each telephone company subject to price cap regulation, 
multiply the company's proposed premium terminating rate by a number 
equal to the sum of the premium terminating base period minutes and a 
number equal to 0.45 multiplied by the non-premium terminating base 
period minutes of that telephone company;
    (C) Sum the numbers computed in paragraphs (b)(2)(ii) (A) and (B) of 
this section for all companies subject to price cap regulation;
    (D) From the number computed in paragraph (b)(2)(ii)(C) of this 
section, subtract a number equal to one cent times the sum of the 
premium originating base period minutes and a number equal to 0.45 
multiplied by the non-premium originating base period minutes of all 
telephone companies subject to price cap regulation, and;
    (E) Divide the number computed in paragraph (b)(2)(ii)(D) of this 
section by the sum of the premium terminating base period minutes and a 
number equal to 0.45 multiplied by the non-premium terminating base 
period minutes of all telephone companies subject to price cap 
regulation.
    (3) If the calculations described in Sec. 69.105(b)(2) result in a 
per minute charge on premium terminating minutes that is less than once 
cent, both the originating and terminating premium charges for the 
association CCL tariff participants shall be computed by dividing the 
number computed in paragraph (b)(2)(ii)(C) of this section by a number 
equal to the sum of the premium originating and terminating base period 
minutes and a number equal to 0.45 multiplied by the sum of the non-

[[Page 500]]

premium originating and terminating base period minutes of all telephone 
companies subject to price cap regulation.
    (4) The Carrier Common Line charges of telephone companies that are 
not association Carrier Common Line tariff participants shall be 
computed at the level of Carrier Common Line access element aggregation 
selected by such telephone companies pursuant to Sec. 69.3(e)(7). For 
each such Carrier Common Line access element tariff--
    (i) The premium originating Carrier Common Line charge shall be one 
cent per minute, and
    (ii) The premium terminating Carrier Common Line charge shall be 
computed by subtracting the projected revenues generated by the 
originating Carrier Common Line charges (both premium and non-premium) 
from the Carrier Common Line revenue requirement for the companies 
participating in that tariff, and dividing the remainder by the sum of 
the projected premium terminating minutes and a number equal to .45 
multiplied by the projected non-premium terminating minutes for such 
companies.
    (5) If the calculations described in Sec. 69.105(b)(4) result in a 
per minute charge on premium terminating minutes that is less than one 
cent, both the originating and terminating premium charges for the 
companies participating in said Carrier Common Line tariff shall be 
computed by dividing the projected Carrier Common Line revenue 
requirement for such companies by the sum of the projected premium 
minutes and a number equal to .45 multiplied by the projected non-
premium minutes for such companies.
    (6) Telephone companies that are not association Carrier Common Line 
tariff participants shall submit to the Commission and to the 
association whatever data the Commission shall determine are necessary 
to calculate the charges described in this section.
    (c) Any interexchange carrier shall receive a credit for Carrier 
Common Line charges to the extent that it resells services for which 
these charges have already been assessed (e.g., MTS or MTS-type service 
of other common carriers).
    (d) From July 1, 2002, to June 30, 2003, the carrier common line 
charge calculations pursuant to this section shall be limited to an 
amount equal to the number of projected residential and single-line 
business lines multiplied by the difference between the residential and 
single-line business End User Common Line rate cap and the lesser of 
$6.50 or the non-price cap local exchange carrier's average cost per 
line.

[51 FR 10841, Mar. 31, 1986, as amended at 52 FR 21541, June 8, 1987; 54 
FR 6293, Feb. 9, 1989; 55 FR 42386, Oct. 19, 1990; 56 FR 21618, May 10, 
1991; 62 FR 31933, June 11, 1997; 66 FR 59731, Nov. 30, 2001]



Sec. 69.106  Local switching.

    (a) Except as provided in Sec. 69.118, charges that are expressed 
in dollars and cents per access minute of use shall be assessed by local 
exchange carriers that are not subject to price cap regulation upon all 
interexchange carriers that use local exchange switching facilities for 
the provision of interstate or foreign services.
    (b) The per minute charge described in paragraph (a) of this section 
shall be computed by dividing the projected annual revenue requirement 
for the Local Switching element, excluding any local switching support 
received by the carrier pursuant to Sec. 54.301 of this chapter, by the 
projected annual access minutes of use for all interstate or foreign 
services that use local exchange switching facilities.
    (c) If end users of an interstate or foreign service that uses local 
switching facilities pay message unit charges for such calls in a 
particular exchange, a credit shall be deducted from the Local Switching 
element charges to such carrier for access service in such exchange. The 
per minute credit for each such exchange shall be multiplied by the 
monthly access minutes for such service to compute the monthly credit to 
such a carrier.
    (d) If all local exchange subscribers in such exchange pay message 
unit charges, the per minute credit described in paragraph (c) of this 
section shall be computed by dividing total message unit charges to all 
subscribers in a particular exchange in a representative month by the 
total minutes of use that were measured for purposes of

[[Page 501]]

computing message unit charges in such month.
    (e) If some local exchange subscribers pay message unit charges and 
some do not, a per minute credit described in paragraph (c) of this 
section shall be computed by multiplying a credit computed pursuant to 
paragraph (d) of this section by a factor that is equal to total minutes 
measured in such month for purposes of computing message unit charges 
divided by the total local exchange minutes in such month.
    (f) Except as provided in Sec. 69.118, price cap local exchange 
carriers shall establish rate elements for local switching as follows:
    (1) Price cap local exchange carriers shall separate from the 
projected annual revenues for the Local Switching element those costs 
projected to be incurred for ports (including cards and DS1/voice-grade 
multiplexers required to access end offices equipped with analog 
switches) on the trunk side of the local switch. Price cap local 
exchange carriers shall further identify costs incurred for dedicated 
trunk ports separately from costs incurred for shared trunk ports.
    (i) Price cap local exchange carriers shall recover dedicated trunk 
port costs identified pursuant to paragraph (f)(1) of this section 
through flat-rated charges expressed in dollars and cents per trunk port 
and assessed upon the purchaser of the dedicated trunk terminating at 
the port.
    (ii) Price cap local exchange carriers shall recover shared trunk 
port costs identified pursuant to paragraph (f)(1) of this section 
through charges assessed upon purchasers of shared transport. This 
charge shall be expressed in dollars and cents per access minute of use. 
The charge shall be computed by dividing the projected costs of the 
shared ports by the historical annual access minutes of use calculated 
for purposes of recovery of common transport costs in Sec. 69.111(c).
    (2) Price cap local exchange carriers shall recover the projected 
annual revenues for the Local Switching element that are not recovered 
in paragraph (f)(1) of this section through charges that are expressed 
in dollars and cents per access minute of use and assessed upon all 
interexchange carriers that use local exchange switching facilities for 
the provision of interstate or foreign services. The maximum charge 
shall be computed by dividing the projected remainder of the annual 
revenues for the Local Switching element by the historical annual access 
minutes of use for all interstate or foreign services that use local 
exchange switching facilities.
    (g) A local exchange carrier may recover signaling costs associated 
with call setup through a call setup charge imposed upon all interstate 
interexchange carriers that use that local exchange carrier's facilities 
to originate or terminate interstate interexchange or foreign services. 
This charge must be expressed as dollars and cents per call attempt and 
may be assessed on originating calls handed off to the interexchange 
carrier's point of presence and on terminating calls received from an 
interexchange carrier's point of presence, whether or not that call is 
completed at the called location. Local exchange carriers may not 
recover through this charge any costs recovered through other rate 
elements.
    (h) Except as provided in Sec. 69.118, non-price cap local exchange 
carriers may establish rate elements for local switching as follows:
    (1) Non-price cap local exchange carriers may separate from the 
projected annual revenue requirement for the Local Switching element 
those costs projected to be incurred for ports (including cards and DS1/
voice-grade multiplexers required to access end offices equipped with 
analog switches) on the trunk side of the local switch. Non-price cap 
local exchange carriers electing to assess these charges shall further 
identify costs incurred for dedicated trunk ports separately from costs 
incurred for shared trunk ports.
    (i) Non-price cap local exchange carriers electing to assess trunk 
port charges shall recover dedicated trunk port costs identified 
pursuant to paragraph (h)(1) of this section through flat-rated charges 
expressed in dollars and cents per trunk port and assessed upon the 
purchaser of the dedicated trunk terminating at the port.
    (ii) Non-price cap local exchange carriers electing to assess trunk 
port charges shall recover shared trunk port

[[Page 502]]

costs identified pursuant to paragraph (h)(1) of this section through 
charges assessed upon purchasers of shared transport. This charge shall 
be expressed in dollars and cents per access minute of use. The charge 
shall be computed by dividing the projected costs of the shared ports by 
the historical annual access minutes of use calculated for purposes of 
recovery of common transport costs in Sec. 69.111(c).
    (2) Non-price cap local exchange carriers shall recover the 
projected annual revenue requirement for the Local Switching element 
that are not recovered in paragraph (h)(1) of this section through 
charges that are expressed in dollars and cents per access minute of use 
and assessed upon all interexchange carriers that use local exchange 
switching facilities for the provision of interstate or foreign 
services. The maximum charge shall be computed by dividing the projected 
remainder of the annual revenue requirement for the Local Switching 
element by the historical annual access minutes of use for all 
interstate or foreign services that use local exchange switching 
facilities.

[52 FR 37310, Oct. 6, 1987, as amended at 56 FR 33881, July 24, 1991; 62 
FR 31933, June 11, 1997; 62 FR 40463, July 29, 1997; 66 FR 59731, Nov. 
30, 2001]



Sec. 69.108  Transport rate benchmark.

    (a) For transport charges computed in accordance with this subpart, 
the DS3-to-DS1 benchmark ratio shall be calculated as follows: the 
telephone company shall calculate the ratio of:
    (1) The total charge for a 1.609 km (1 mi) channel termination, 
16.09 km (10 mi) of interoffice transmission, and one DS3 multiplexer 
using the telephone company's DS3 special access rates to;
    (2) The total charge for a 1.609 km (1 mi) channel termination plus 
16.09 km (10 mi) of interoffice transmission using the telephone 
company's DS1 special access rates.
    (b) Initial transport rates will generally be presumed reasonable if 
they are based on special access rates with a DS3-to-DS1 benchmark ratio 
of 9.6 to 1 or higher.
    (c) If a telephone company's initial transport rates are based on 
special access rates with a DS3-to-DS1 benchmark ratio of less than 9.6 
to 1, those initial transport rates will generally be suspended and 
investigated absent a substantial cause showing by the telephone 
company. Alternatively, the telephone company may adjust its initial 
transport rates so that the DS3-to-DS1 ratio calculated as described in 
paragraph (a) of this section of those rates is 9.6 or higher. In that 
case, initial transport rates that depart from existing special access 
rates effective on September 1, 1992 so as to be consistent with the 
benchmark will be presumed reasonable only so long as the ratio of 
revenue recovered through the interconnection charge to the revenue 
recovered through facilities-based charges is the same as it would be if 
the telephone company's existing special access rates effective on 
September 1, 1992 were used.

[58 FR 41189, Aug. 3, 1993, as amended at 58 FR 44952, Aug. 25, 1993; 58 
FR 45267, Aug. 27, 1993]



Sec. 69.109  Information.

    (a) A charge shall be assessed upon all interexchange carriers that 
are connected to assistance boards through interexchange directory 
assistance trunks.
    (b) Except as provided in Sec. 69.118, if such connections are 
maintained exclusively by carriers that offer MTS, the projected annual 
revenue requirement for the Information element shall be divided by 12 
to compute the monthly assessment to such carriers.
    (c) If such connections are provided to additional carriers, charges 
shall be established that reflect the relative use of such directory 
assistance service by such interexchange carriers.

[48 FR 10358, Mar. 11, 1983, as amended at 56 FR 33881, July 24, 1991]



Sec. 69.110  Entrance facilities.

    (a) A flat-rated entrance facilities charge expressed in dollars and 
cents per unit of capacity shall be assessed upon all interexchange 
carriers and other persons that use telephone company facilities between 
the interexchange carrier or other person's point of demarcation and the 
serving wire center.

[[Page 503]]

    (b)(1) For telephone companies subject to price cap regulation, 
initial entrance facilities charges based on special access channel 
termination rates for equivalent voice grade, DS1, and DS3 services as 
of September 1, 1992, adjusted for changes in the price cap index 
calculated for the July 1, 1993 annual filing for telephone companies 
subject to price cap regulation, generally shall be presumed reasonable 
if the benchmark defined in Sec. 69.108 is satisfied. Entrance 
facilities charges may be distance-sensitive. Distance shall be measured 
as airline kilometers between the point of demarcation and the serving 
wire center.
    (2) For telephone companies not subject to price cap regulation, 
entrance facilities charges based on special access channel termination 
rates for equivalent voice grade, DS1, and DS3 services generally shall 
be presumed reasonable if the benchmark defined in Sec. 69.108 is 
satisfied. Entrance facilities charges may be distance-sensitive. 
Distance shall be measured as airline kilometers between the point of 
demarcation and the serving wire center.
    (c) If the telephone company employs distance-sensitive rates:
    (1) A distance-sensitive component shall be assessed for use of the 
transmission facilities, including any intermediate transmission circuit 
equipment between the end points of the entrance facilities; and
    (2) A nondistance-sensitive component shall be assessed for use of 
the circuit equipment at the ends of the transmission links.
    (d) Telephone companies shall apply only their shortest term special 
access rates in setting entrance facilities charges.
    (e) Except as provided in paragraphs (f), (g), and (h) of this 
section, and subpart H of this part, telephone companies shall not offer 
entrance facilities based on term discounts or volume discounts for 
multiple DS3s or any other service with higher volume than DS3.
    (f) Except in the situations set forth in paragraphs (g) and (h) of 
this section, telephone companies may offer term and volume discounts in 
entrance facilities charges within each study area used for the purpose 
of jurisdictional separations, in which interconnectors have taken 
either:
    (1) At least 100 DS1-equivalent cross-connects for the transmission 
of switched traffic (as described in Sec. 69.121(a)(1) of this chapter) 
in offices in the study area that the telephone company has assigned to 
the lowest priced density pricing zone (zone 1) under an approved 
density pricing zone plan as described in Sec. Sec. 61.38(b)(4) and 
61.49(k) of this chapter; or
    (2) An average of at least 25 DS1-equivalent cross-connects for the 
transmission of switched traffic per office assigned to the lowest 
priced density pricing zone (zone 1).
    (g) In study areas in which the telephone company has implemented 
density zone pricing, but no offices have been assigned to the lowest 
price density pricing zone (zone 1), telephone companies may offer term 
and volume discounts in entrance facilities charges within the study 
area when interconnectors have taken at least 5 DS1-equivalent cross-
connects for the transmission of switched traffic (as described in Sec. 
69.121(a)(1) of this chapter) in offices in the study area.
    (h) In study areas in which the telephone company has not 
implemented density zone pricing, telephone companies may offer term and 
volume discounts in entrance facilities charges when interconnectors 
have taken at least 100 DS1-equivalent cross-connects for the 
transmission of switched traffic (as described in Sec. 69.121(a)(1) of 
this chapter) in offices in the study area.

[57 FR 54720, Nov. 20, 1992, as amended at 58 FR 41190 and 41191, Aug. 
3, 1993; 58 FR 44950, Aug. 25, 1993; 58 FR 48763, Sept. 17, 1993; 59 FR 
10304, Mar. 4, 1994; 60 FR 50121, Sept. 28, 1995; 64 FR 51267, Sept. 22, 
1999]



Sec. 69.111  Tandem-switched transport and tandem charge.

    (a)(1) Through June 30, 1998, except as provided in paragraph (l) of 
this section, tandem-switched transport shall consist of two rate 
elements, a transmission charge and a tandem switching charge.
    (2) Beginning July 1, 1998, except as provided in paragraph (l) of 
this section, tandem-switched transport shall consist of three rate 
elements as follows:

[[Page 504]]

    (i) A per-minute charge for transport of traffic over common 
transport facilities between the incumbent local exchange carrier's end 
office and the tandem switching office. This charge shall be expressed 
in dollars and cents per access minute of use and shall be assessed upon 
all purchasers of common transport facilities between the local exchange 
carrier's end office and the tandem switching office.
    (ii) A per-minute tandem switching charge. This tandem switching 
charge shall be set in accordance with paragraph (g) of this section, 
excluding multiplexer and dedicated port costs recovered in accordance 
with paragraph (l) of this section, and shall be assessed upon all 
interexchange carriers and other persons that use incumbent local 
exchange carrier tandem switching facilities.
    (iii) A flat-rated charge for transport of traffic over dedicated 
transport facilities between the serving wire center and the tandem 
switching office. This charge shall be assessed as a charge for 
dedicated transport facilities provisioned between the serving wire 
center and the tandem switching office in accordance with Sec. 69.112.
    (b) [Reserved]
    (c)(1) Until June 30, 1998:
    (i) Except in study areas where the incumbent local exchange carrier 
has implemented density pricing zones as described in section 69.123, 
per-minute common transport charges described in paragraph (a)(1) of 
this section shall be presumed reasonable if the incumbent local 
exchange carrier bases the charges on a weighted per-minute equivalent 
of direct-trunked transport DS1 and DS3 rates that reflects the relative 
number of DS1 and DS3 circuits used in the tandem to end office links 
(or a surrogate based on the proportion of copper and fiber facilities 
in the interoffice network), calculated using the total actual voice-
grade minutes of use, geographically averaged on a study-area-wide 
basis, that the incumbent local exchange carrier experiences based on 
the prior year's annual use. Tandem-switched transport transmission 
charges that are not presumed reasonable shall be suspended and 
investigated absent a substantial cause showing by the incumbent local 
exchange carrier.
    (ii) In study areas where the incumbent local exchange carrier has 
implemented density pricing zones as described in section 69.123, per-
minute common transport charges described in paragraph (a)(1) of this 
section shall be presumed reasonable if the incumbent local exchange 
carrier bases the charges on a weighted per-minute equivalent of direct-
trunked transport DS1 and DS3 rates that reflects the relative number of 
DS1 and DS3 circuits used in the tandem to end office links (or a 
surrogate based on the proportion of copper and fiber facilities in the 
interoffice network), calculated using the total actual voice-grade 
minutes of use, averaged on a zone-wide basis, that the incumbent local 
exchange carrier experiences based on the prior year's annual use. 
Tandem-switched transport transmission charges that are not presumed 
reasonable shall be suspended and investigated absent a substantial 
cause showing by the incumbent local exchange carrier.
    (2) Beginning July 1, 1998:
    (i) Except in study areas where the incumbent local exchange carrier 
has implemented density pricing zones as described in section 69.123, 
per-minute common transport charges described in paragraph (a)(2)(i) of 
this section shall be presumed reasonable if the incumbent local 
exchange carrier bases the charges on a weighted per-minute equivalent 
of direct-trunked transport DS1 and DS3 rates that reflects the relative 
number of DS1 and DS3 circuits used in the tandem to end office links 
(or a surrogate based on the proportion of copper and fiber facilities 
in the interoffice network), calculated using the total actual voice-
grade minutes of use, geographically averaged on a study-area-wide 
basis, that the incumbent local exchange carrier experiences based on 
the prior year's annual use. Tandem-switched transport transmission 
charges that are not presumed reasonable shall be suspended and 
investigated absent a substantial cause showing by the incumbent local 
exchange carrier.

[[Page 505]]

    (ii) In study areas where the incumbent local exchange carrier has 
implemented density pricing zones as described in section 69.123, per-
minute common transport charges described in paragraph (a)(2)(i) of this 
section shall be presumed reasonable if the incumbent local exchange 
carrier bases the charges on a weighted per-minute equivalent of direct-
trunked transport DS1 and DS3 rates that reflects the relative number of 
DS1 and DS3 circuits used in the tandem to end office links (or a 
surrogate based on the proportion of copper and fiber facilities in the 
interoffice network), calculated using the total actual voice-grade 
minutes of use, averaged on a zone-wide basis, that the incumbent local 
exchange carrier experiences based on the prior year's annual use. 
Tandem-switched transport transmission charges that are not presumed 
reasonable shall be suspended and investigated absent a substantial 
cause showing by the incumbent local exchange carrier.
    (d)(1) Through June 30, 1998, the tandem-switched transport 
transmission charges may be distance-sensitive. Distance shall be 
measured as airline distance between the serving wire center and the end 
office, unless the customer has ordered tandem-switched transport 
between the tandem office and the end office, in which case distance 
shall be measured as airline distance between the tandem office and the 
end office.
    (2) Beginning July 1, 1998, the per-minute charge for transport of 
traffic over common transport facilities described in paragraph 
(a)(2)(i) of this section may be distance-sensitive. Distance shall be 
measured as airline distance between the tandem switching office and the 
end office.
    (e)(1) Through June 30, 1998, if the telephone company employs 
distance-sensitive rates:
    (i) A distance-sensitive component shall be assessed for use of the 
transmission facilities, including intermediate transmission circuit 
equipment between the end points of the interoffice circuit; and
    (ii) A non-distance-sensitive component shall be assessed for use of 
the circuit equipment at the ends of the interoffice transmission links.
    (2) Beginning July 1, 1998, if the telephone company employs 
distance-sensitive rates for transport of traffic over common transport 
facilities, as described in paragraph (a)(2)(i) of this section:
    (i) A distance-sensitive component shall be assessed for use of the 
common transport facilities, including intermediate transmission circuit 
equipment between the end office and tandem switching office; and
    (ii) A non-distance-sensitive component shall be assessed for use of 
the circuit equipment at the ends of the interoffice transmission links.
    (f) [Reserved]
    (g)(1) The tandem switching charge imposed pursuant to paragraphs 
(a)(1) or (a)(2)(ii) of this section, as applicable, shall be set to 
recover twenty percent of the annual part 69 interstate tandem revenue 
requirement plus one third of the portion of the tandem switching 
revenue requirement being recovered through the interconnection charge 
recovered by Sec. Sec. 69.124, 69.153, and 69.155, excluding 
multiplexer and dedicated port costs recovered in accordance with 
paragraph (l) of this section.
    (2) Beginning January 1, 1999, the tandem switching charge imposed 
pursuant to paragraph (a)(2)(ii) of this section shall be set to recover 
the amount prescribed in paragraph (g)(1) of this section plus one half 
of the remaining portion of the tandem switching revenue requirement 
then being recovered through the interconnection charge recovered by 
Sec. Sec. 69.124, 69.153, and 69.155, excluding multiplexer and 
dedicated port costs recovered in accordance with paragraph (l) of this 
section.
    (3) Beginning January 1, 2000, the tandem switching charge imposed 
pursuant to paragraph (a)(2)(ii) of this section shall be set to recover 
the entire interstate tandem switching revenue requirement, including 
that portion formerly recovered through the interconnection charge 
recovered in Sec. Sec. 69.124, 69.153, and 69.155, and excluding 
multiplexer and dedicated port costs recovered in accordance with 
paragraph (l) of this section.
    (4) A local exchange carrier that is subject to price cap regulation 
as that

[[Page 506]]

term is defined in Sec. 61.3(x) of this chapter shall calculate its 
tandem switching revenue requirement as used in this paragraph by 
dividing the tandem switching revenue requirement that was included in 
the original interconnection charge by the original interconnection 
charge, and then multiplying this result by the annual revenues 
recovered through the interconnection charge, described in Sec. 69.124, 
as of June 30, 1997. A local exchange carrier that is subject to price 
cap regulation as that term is defined in Sec. 61.3(x) of this chapter 
shall then make downward exogenous adjustments to the service band index 
for the interconnection charge service category (defined in Sec. 
61.42(e)(2)(vi) of this chapter) and corresponding upward adjustments to 
the service band index for the tandem-switched transport service 
category (defined in Sec. 61.42(e)(2)(v) of this chapter) at the times 
and in the amounts prescribed in paragraphs (g)(1) through (g)(3) of 
this section .
    (h) All telephone companies shall provide tandem-switched transport 
service.
    (i) Except in the situations set forth in paragraphs (j) and (k) of 
this section, telephone companies may offer term and volume discounts in 
tandem-switched transport charges within each study area used for the 
purpose of jurisdictional separations, in which interconnectors have 
taken either:
    (1) At least 100 DS1-equivalent cross-connects for the transmission 
of switched traffic (as described in Sec. 69.121(a)(1) of this chapter) 
in offices in the study area that the telephone company has assigned to 
the lowest priced density pricing zone (zone 1) under an approved 
density pricing zone plan as described in Sec. Sec. 61.38(b)(4) and 
61.49(k) of this chapter; or
    (2) An average of at least 25 DS1-equivalent cross-connects for the 
transmission of switched traffic per office assigned to the lowest 
priced density pricing zone (zone 1).
    (j) In study areas in which the telephone company has implemented 
density zone pricing, but no offices have been assigned to the lowest 
priced density pricing zone (zone 1), telephone companies may offer term 
and volume discounts in tandem-switched transport charges within the 
study area when interconnectors have taken at least 5 DS1-equivalent 
cross-connects for the transmission of switched traffic (as described in 
Sec. 69.121(a)(1) of this chapter) in offices in the study area.
    (k) In study areas in which the telephone company has not 
implemented density zone pricing, telephone companies may offer term and 
volume discounts in tandem-switched transport charges when 
interconnectors have taken at least 100 DS1-equivalent cross-connects 
for the transmission of switched traffic (as described in Sec. 
69.121(a)(1) of this chapter) in offices in the study area.
    (l) In addition to the charges described in this section, price cap 
local exchange carriers shall establish separate charges for 
multiplexers and dedicated trunk ports used in conjunction with the 
tandem switch as follows:
    (1) Local exchange carriers must establish a traffic-sensitive 
charge for DS3/DS1 multiplexers used on the end office side of the 
tandem switch, assessed on purchasers of common transport to the tandem 
switch. This charge must be expressed in dollars and cents per access 
minute of use. The maximum charge shall be calculated by dividing the 
total costs of the multiplexers on the end office-side of the tandem 
switch by the annual access minutes of use calculated for purposes of 
recovery of common transport costs in paragraph (c) of this section. A 
similar charge shall be assessed for DS1/voice-grade multiplexing 
provided on the end-office side of analog tandem switches.
    (2)(i) Local exchange carriers must establish a flat-rated charge 
for dedicated DS3/DS1 multiplexing on the serving wire center side of 
the tandem switch provided in conjunction with dedicated DS3 transport 
service from the serving wire center to the tandem switch. This charge 
shall be assessed on interexchange carriers purchasing tandem-switched 
transport in proportion to the number of DS3 trunks provisioned for that 
interexchange carrier between the serving wire center and the tandem-
switch.
    (ii) Local exchange carriers must establish a flat-rated charge for 
dedicated DS1/voice-grade multiplexing

[[Page 507]]

provided on the serving wire center side of analog tandem switches. This 
charge may be assessed on interexchange carriers purchasing tandem-
switched transport in proportion to the interexchange carrier's 
transport capacity on the serving wire center side of the tandem.
    (3) Price cap local exchange carriers may recover the costs of 
dedicated trunk ports on the serving wire center side of the tandem 
switch only through flat-rated charges expressed in dollars and cents 
per trunk port and assessed upon the purchaser of the dedicated trunk 
terminating at the port.
    (m) In addition to the charges described in this section, non-price 
cap local exchange carriers may establish separate charges for 
multiplexers and dedicated trunk ports used in conjunction with the 
tandem switch as follows:
    (1)(i) Non-price cap local exchange carriers may establish a flat-
rated charge for dedicated DS3/DS1 multiplexing on the serving wire 
center side of the tandem switch provided in conjunction with dedicated 
DS3 transport service from the serving wire center to the tandem switch. 
This charge shall be assessed on interexchange carriers purchasing 
tandem-switched transport in proportion to the number of DS3 trunks 
provisioned for that interexchange carrier between the serving wire 
center and the tandem switch.
    (ii) Non-price cap local exchange carriers may establish a flat-
rated charge for dedicated DS1/voice-grade multiplexing provided on the 
serving wire center side of analog tandem switches. This charge may be 
assessed on interexchange carriers purchasing tandem-switched transport 
in proportion to the interexchange carrier's transport capacity on the 
serving wire center side of the tandem.
    (2) Non-price cap local exchange carriers may recover the costs of 
dedicated trunk ports on the serving wire center side of the tandem 
switch through flat-rated charges expressed in dollars and cents per 
trunk port and assessed upon the purchaser of the dedicated trunk 
terminating at the port.

[57 FR 54720, Nov. 20, 1992, as amended at 58 FR 41190, Aug. 3, 1993; 58 
FR 48764, Sept. 17, 1993; 60 FR 50121, Sept. 28, 1995; 62 FR 31933, June 
11, 1997; 62 FR 40463, July 29, 1997; 62 FR 56132, Oct. 29, 1997; 64 FR 
46594, Aug. 26, 1999; 66 FR 59732, Nov. 30, 2001]



Sec. 69.112  Direct-trunked transport.

    (a) A flat-rated direct-trunked transport charge expressed in 
dollars and cents per unit of capacity shall be assessed upon all 
interexchange carriers and other persons that use telephone company 
direct-trunked transport facilities.
    (b)(1) For telephone companies subject to price cap regulation, 
initial direct-trunked transport charges based on the interoffice 
charges for equivalent voice grade, DS1, and DS3 special access services 
as of September 1, 1992, adjusted for changes in the price cap index 
calculated for the July 1, 1993 annual filing for telephone companies 
subject to price cap regulation, generally shall be presumed reasonable 
if the benchmark defined in Sec. 69.108 is satisfied. Direct-trunked 
transport charges may be distance-sensitive. Distance shall be measured 
as airline kilometers between customer-designated points.
    (2) For telephone companies not subject to price cap regulation, 
initial direct-trunked transport charges based on the interoffice 
charges for equivalent voice grade, DS1, and DS3 special access services 
generally shall be presumed reasonable if the benchmark defined in Sec. 
69.108 is satisfied. Direct-trunked transport charges may be distance-
sensitive. Distance shall be measured as airline kilometers between 
customer-designated points.
    (c) If the telephone company employs distance-sensitive rates:
    (1) A distance-sensitive component shall be assessed for use of the 
transmission facilities, including intermediate transmission circuit 
equipment, between the end points of the circuit; and
    (2) A nondistance-sensitive component shall be assessed for use of 
the circuit equipment at the ends of the transmission links.

[[Page 508]]

    (d) Telephone companies shall apply only their shortest term special 
access rates in setting direct-trunked transport rates.
    (e) Except as provided in pagagraphs (f), (g), and (h) of this 
section, telephone companies shall not offer direct-trunked transport 
rates based on term discounts or volume discounts for multiple DS3s or 
any other service with higher volume than DS3.
    (f) Except in the situations set forth in paragraphs (g) and (h) of 
this section, telephone companies may offer term and volume discounts in 
direct-trunked transport charges within each study area used for the 
purpose of jurisdictional separations, in which interconnectors have 
taken either:
    (1) At least 100 DS1-equivalent cross-connects for the transmission 
of switched traffic (as described in Sec. 69.121(a)(1)) in offices in 
the study area that the telephone company has assigned to the lowest 
priced density pricing zone (zone 1) under an approved density pricing 
zone plan as described in Sec. Sec. 61.38(b)(4) and 61.49(k) of this 
section; or
    (2) An average of at least 25 DS1-equivalent cross-connects for the 
transmission of switched traffic per office assigned to the lowest 
priced density pricing zone (zone 1).
    (g) In study areas in which the telephone company has implemented 
density zone pricing, but no offices have been assigned to the lowest 
priced density pricing zone (zone 1), telephone companies may offer term 
and volume discounts in direct-trunked transport charges within the 
study area when interconnectors have taken at least 5 DS1-equivalent 
cross-connects for the transmission of switched traffic (as described in 
Sec. 69.121(a)(1) of this chapter) in offices in the study area.
    (h) In study areas in which the telephone company has not 
implemented density zone pricing, telephone companies may offer term and 
volume discounts in direct-trunked transport charges when 
interconnectors have taken at least 100 DS1-equivalent cross-connects 
for the transmission of switched traffic (as described in Sec. 
69.121(a)(1) of this chapter) in offices in the study area.
    (i) Centralized equal access providers as described in Transport 
Rate Structure and Pricing, CC Docket No. 91-213, FCC 92-442, 7 FCC Rcd 
7002 (1992), are not required to provide direct-trunked transport 
service. Telephone companies that do not have measurement and billing 
capabilities at their end offices are not required to provide direct-
trunked transport services at those end offices without measurement and 
billing capabilities. Telephone companies that are not classified as 
Class A companies under Sec. 32.11 of this chapter are required to 
provide direct-trunked transport service upon request. All other 
telephone companies shall provide a direct-trunked transport service.

[57 FR 54720, Nov. 20, 1992, as amended at 58 FR 41190, Aug. 3, 1993; 58 
FR 44950, Aug. 25, 1993; 58 FR 48764, Sept. 17, 1993; 60 FR 50121, Sept. 
28, 1995]



Sec. 69.113  Non-premium charges for MTS-WATS equivalent services.

    (a) Charges that are computed in accordance with this section shall 
be assessed upon interexchange carriers or other persons that receive 
access that is not deemed to be premium access as this term in defined 
in Sec. 69.105(b)(1) in lieu of carrier charges that are computed in 
accordance with Sec. Sec. 69.105, 69.106, 69.118, 69.124, and 69.127.
    (b) The non-premium charge for the Carrier Common Line element shall 
be computed by multiplying the premium charge for such element by .45.
    (c) For telephone companies that are not subject to price cap 
regulation as that term is defined in Sec. 61.3(x) of this chapter, the 
non-premium charge for the Local Switching element shall be computed by 
multiplying a hypothetical premium charge for such element by .45. The 
hypothetical premium charge for such element shall be computed by 
dividing the annual revenue requirement for each element by the sum of 
the projected access minutes for such period and a number that is 
computed by multiplying the projected non-premium minutes for such 
element for such period by .45. For telephone companies that are price 
cap carriers, the non-premium charge for the Local Switching element 
shall be computed by multiplying the premium charge for such element by 
.45. Though June 30,

[[Page 509]]

1993, the non-premium charge shall be computed by multiplying the LS2 
charge for such element by .45.
    (d) The non-premium charge or charges for the interconnection charge 
element shall be computed by multiplying the corresponding premium 
charge or charges by .45.
    (e) The non-premium charge for any BSEs in local switching shall be 
computed by multiplying the premium charge for the corresponding BSEs by 
.45.

[54 FR 6293, Feb. 9, 1989, as amended at 55 FR 42386, Oct. 19, 1990; 55 
FR 50559, Dec. 7, 1990; 56 FR 33881, July 24, 1991; 57 FR 54721, Nov. 
20, 1992; 59 FR 10304, Mar. 4, 1994; 64 FR 46594, Aug. 26, 1999]



Sec. 69.114  Special access.

    (a) Appropriate subelements shall be established for the use of 
equipment or facilities that are assigned to the Special Access element 
for purposes of apportioning net investment, or that are equivalent to 
such equipment or facilities for companies subject to price cap 
regulation as that term is defined in Sec. 61.3(x) of this chapter.
    (b) Charges for all subelements shall be designed to produce total 
annual revenue that is equal to the projected annual revenue requirement 
for the Special Access element.
    (c) Charges for an individual element shall be assessed upon all 
interexchange carriers that use the equipment or facilities that are 
included within such subelement.
    (d) Charges for individual subelements shall be designed to reflect 
cost differences among subelements in a manner that complies with 
applicable Commission rules or decisions.

[48 FR 10358, Mar. 11, 1983, as amended at 48 FR 43019, Sept. 21, 1983. 
Redesignated at 54 FR 6293, Feb. 9, 1989, as amended at 55 FR 42386, 
Oct. 19, 1990; 64 FR 46594, Aug. 26, 1999]



Sec. 69.115  Special access surcharges.

    (a) Pending the development of techniques accurately to measure 
usage of exchange facilities that are interconnected by users with means 
of interstate or foreign telecommunications, a surcharge that is 
expressed in dollars and cents per line termination per month shall be 
assessed upon users that subscribe to private line services or WATS 
services that are not exempt from assessment pursuant to paragraph (e) 
of this section.
    (b) Such surcharge shall be computed to reflect a reasonable 
approximation of the carrier usage charges which, assuming non-premium 
interconnection, would have been paid for average interstate or foreign 
usage of common lines, end office facilities, and transport facilities, 
attributable to each Special Access line termination which is not exempt 
from assessment pursuant to paragraph (e) of this section.
    (c) If the association, carrier or carriers that file the tariff are 
unable to estimate such average usage for a period ending May 31, 1985, 
the surcharge for such period shall be twenty-five dollars ($25) per 
line termination per month. As of June 30, 2000, these rates will remain 
and be capped at the current levels until June 30, 2005.
    (d) A telephone company may propose reasonable and nondiscriminatory 
end user surcharges, to be filed in its federal access tariffs and to be 
applied to the use of exchange facilities which are interconected by 
users with means of interstate or foreign telecommunication which are 
not provided by the telephone company, and which are not exempt from 
assessment pursuant to paragraph (e) of this section. Telephone 
companies which wish to avail themselves of this option must undertake 
to use reasonable efforts to identify such means of interstate or 
foreign telecommunication, and to assess end user surcharges in a 
reasonable and nondiscriminatory manner.
    (e) No special access surcharges shall be assessed for any of the 
following terminations:
    (1) The open end termination in a telephone company switch of an FX 
line, including CCSA and CCSA-equivalent ONALs;
    (2) Any termination of an analog channel that is used for radio or 
television program transmission;
    (3) Any termination of a line that is used for telex service;
    (4) Any termination of a line that by nature of its operating 
characteristics could not make use of common lines; and

[[Page 510]]

    (5) Any termination of a line that is subject to carrier usage 
charges pursuant to Sec. 69.5.
    (6) Any termination of a line that the customer certifies to the 
exchange carrier is not connected to a PBX or other device capable of 
interconnecting a local exchange subscriber line with the private line 
or WATS access line.

(47 U.S.C. 154 (i) and (j), 201, 202, 203, 205, 218 and 403 and 5 U.S.C. 
553)

[48 FR 43019, Sept. 21, 1983, as amended at 49 FR 7829, Mar. 2, 1984; 51 
FR 10841, Mar. 31, 1986; 52 FR 8259, Mar. 17, 1987; 65 FR 38701, June 
21, 2000]



Sec. 69.118  Traffic sensitive switched services.

    Notwithstanding Sec. Sec. 69.4(b), 69.106, 69.109, 69.110, 69.111, 
69.112, and 69.124, telephone companies subject to the BOC ONA Order, 4 
FCC Rcd 1 (1988) shall, and other telephone companies may, establish 
approved Basic Service Elements as provided in Amendments of part 69 of 
the Commission's rules relating to the Creation of Access Charge 
Subelements for Open Network Architecture, Report and Order, 6 FCC Rcd 
4524 (1991) and 800 data base subelements, as provided in Provision of 
Access for 800 Service, 8 FCC Rcd --------, CC Docket 86-10, FCC 93-53 
(1993). Moreover, all customers that use basic 800 database service 
shall be assessed a charge that is expressed in dollars and cents per 
query. Telephone companies shall take into account revenues from the 
relevant Basic Service Element or Elements and 800 Database Service 
Elements in computing rates for the Local Switching, Entrance 
Facilities, Tandem-Switched Transport, Direct-Trunked Transport, 
Interconnection Charge, and/or Information elements.

[58 FR 7868, Feb. 10, 1993]



Sec. 69.119  Basic service element expedited approval process.

    The rules for filing comments and reply comments on requests for 
expedited approval of new basic service elements are those indicated in 
Sec. 1.45 of the rules, except as specified otherwise.

[56 FR 33881, July 24, 1991]



Sec. 69.120  Line information database.

    (a) A charge that is expressed in dollars and cents per query shall 
be assessed upon all carriers that access validation information from a 
local exchange carrier database to recover the costs of:
    (1) The transmission facilities between the local exchange carrier's 
signalling transfer point and the database; and
    (2) The signalling transfer point facilities dedicated to the 
termination of the transmission facilities connecting the database to 
the exchange carrier's signalling network.
    (b) A charge that is expressed in dollars and cents per query shall 
be assessed upon all carriers that access validation information from a 
local exchange carrier line information database to recover the costs of 
the database.

[57 FR 24380, June 9, 1992]



Sec. 69.121  Connection charges for expanded interconnection.

    (a) Appropriate connection charge subelements shall be established 
for the use of equipment and facilities that are associated with 
offerings of expanded interconnection for special access and switched 
transport services, as defined in part 64, subpart N of this chapter. To 
the extent that the same equipment and facilities are used to provide 
expanded interconnection for both special access and switched transport, 
the same connection charge subelements shall be used.
    (1) A cross-connect subelement shall be established for charges 
associated with the cross-connect cable and associated facilities 
connecting the equipment owned by or dedicated to the use of the 
interconnector with the telephone company's equipment and facilities 
used to provide interstate special or switched access services. Charges 
for the cross-connect subelement shall not be deaveraged within a study 
area that is used for purposes of jurisdictional separations.
    (2) Charges for subelements associated with physical collocation or 
virtual collocation, other than the subelement described in paragraph 
(a)(1) of

[[Page 511]]

this section and subelements recovering the cost of the virtual 
collocation equipment described in Sec. 64.1401(e)(1) of this chapter, 
may reasonably differ in different central offices, notwithstanding 
Sec. 69.3(e)(7).
    (b) Connection charge subelements shall be computed based upon the 
costs associated with the equipment and facilities that are included in 
such subelements, including no more than a just and reasonable portion 
of the telephone company's overhead costs.
    (c) Connection charge subelements shall be assessed upon all 
interconnectors that use the equipment or facilities that are included 
in such subelements.

[57 FR 54332, Nov. 18, 1992, as amended at 58 FR 48764, Sept. 17, 1993; 
59 FR 38930, Aug. 1, 1994]



Sec. 69.123  Density pricing zones for special access and switched transport.

    (a)(1) Incumbent local exchange carriers not subject to price cap 
regulation may establish any number of density zones within a study area 
that is used for purposes of jurisdictional separations, provided that 
each zone, except the highest-cost zone, accounts for at least 15 
percent of that carrier's special access and transport revenues within 
that study area, calculated pursuant to the methodology set forth in 
Sec. 69.725.
    (2) Such a system of pricing zones shall be designed to reasonably 
reflect cost-related characteristics, such as the density of total 
interstate traffic in central offices located in the respective zones.
    (3) Non-price cap incumbent local exchange carriers may establish 
only one set of density pricing zones within each study area, to be used 
for the pricing of both special and switched access pursuant to 
paragraphs (c) and (d) of this section.
    (b)(1) Incumbent local exchange carriers subject to price cap 
regulation may establish any number of density zones within a study area 
that is used for purposes of jurisdictional separations, provided that 
each zone, except the highest-cost zone, accounts for at least 15 
percent of that carrier's trunking basket revenues within that study 
area, calculated pursuant to the methodology set forth in Sec. 69.725.
    (2) Price cap incumbent local exchange carriers may establish only 
one set of density pricing zones within each study area, to be used for 
the pricing of all services within the trunking basket for which zone 
density pricing is permitted.
    (3) An access service subelement for which zone density pricing is 
permitted shall be deemed to be offered in the zone that contains the 
telephone company location from which the service is provided.
    (4) An access service subelement for which zone density pricing is 
permitted which is provided to a customer between telephone company 
locations shall be deemed to be offered in the highest priced zone that 
contains one of the locations between which the service is offered.
    (c) Notwithstanding Sec. 69.3(e)(7), in study areas in which a 
telephone company offers a cross-connect, as described in Sec. 
69.121(a)(1), for the transmission of interstate special access traffic, 
telephone companies may charge rates for special access sub-elements of 
DS1, DS3, and such other special access services as the Commission may 
designate, that differ depending on the zone in which the service is 
offered, provided that the charges for any such service shall not be 
deaveraged within any such zone.
    (1) A special access service subelement shall be deemed to be 
offered in the zone that contains the telephone company location from 
which the service is provided.
    (2) A special access service subelement provided to a customer 
between telephone company locations shall be deemed to be offered in the 
highest priced zone that contains one of the locations between which the 
service is offered.
    (d) Notwithstanding Sec. 69.3(e)(7), in study areas in which a 
telephone company offers a cross-connect, as described in Sec. 
69.121(a)(1), for the transmission of interstate switched traffic, or is 
using collocated facilities to interconnect with telephone company 
interstate switched transport services, telephone companies may charge 
rates for sub-elements of direct-trunked

[[Page 512]]

transport, tandem-switched transport, entrance facilities, and dedicated 
signaling transport that differ depending on the zone in which the 
service is offered, provided that the charge for any such service shall 
not be deaveraged within any such zone.
    (1) A switched transport service subelement shall be deemed to be 
offered in the zone that contains the telephone company location from 
which the service is provided.
    (2) A switched transport service subelement provided to a customer 
between telephone company locations shall be deemed to be offered in the 
highest priced zone that contains either of the locations between which 
the service is offered.
    (e)(1) Telephone companies not subject to price cap regulation may 
charge a rate for each service in the highest priced zone that exceeds 
the rate for the same service in the lowest priced zone by no more than 
fifteen percent of the rate for the service in the lowest priced zone 
during the period from the date that the zones are initially established 
through the following June 30. The difference between the rates for any 
such service in the highest priced zone and the lowest priced zone in a 
study area, measured as a percentage of the rate for the service in the 
lowest priced zone, may increase by no more than an additional fifteen 
percentage points in each succeeding year, measured from the rate 
differential in effect on the last day of the preceding tariff year.
    (2) Notwithstanding Sec. 69.3(e)(7), incumbent local exchange 
carriers subject to price cap regulation may charge different rates for 
services in different zones pursuant to Sec. 61.47(f) of this chapter, 
provided that the charges for any such service are not deaveraged within 
any such zone.
    (f)(1) An incumbent local exchange carrier that establishes density 
pricing zones under this section must reallocate additional amounts 
recovered under the interconnection charge prescribed in Sec. 69.124 of 
this subpart to facilities-based transport rates, to reflect the higher 
costs of serving lower density areas. Each incumbent local exchange 
carrier must reallocate costs from the interexchange charge each time it 
increases the ratio between the prices in its lowest-cost zone and any 
other zone in that study area.
    (2) Any incumbent local exchange carrier that has already deaveraged 
its rates on January 1, 1998 must reallocate an amount equivalent to 
that described in paragraph (f)(1) of this section from the 
interconnection charge prescribed in Sec. 69.124 to its transport 
services.
    (3) Price cap local exchange carriers shall reassign to direct-
trunked transport and tandem-switched transport categories or 
subcategories interconnection charge amounts reallocated under paragraph 
(f)(1) or (f)(2) of this section in a manner that reflects the way 
density pricing zones are being implemented by the incumbent local 
exchange carrier.

[57 FR 54333, Nov. 18, 1992, as amended at 58 FR 48764, Sept. 17, 1993; 
62 FR 31935, June 11, 1997; 64 FR 51267, Sept. 22, 1999; 69 FR 25336, 
May 6, 2004]



Sec. 69.124  Interconnection charge.

    (a) Until December 31, 2001, local exchange carriers not subject to 
price cap regulation shall assess an interconnection charge expressed in 
dollars and cents per access minute upon all interexchange carriers and 
upon all other persons using the telephone company switched access 
network.
    (b) If the use made of the local exchange carrier's switched access 
network includes the local switch, but not local transport, the 
interconnection charge assessed pursuant to paragraph (a) of this 
section shall be computed by subtracting entrance facilities, tandem-
switched transport, direct-trunked transport, and dedicated signalling 
transport revenues, as well as any interconnection charge revenues that 
the local exchange carrier anticipates will be reassigned to other, 
facilities-based rate elements in the future, from the part 69 transport 
revenue requirement, and dividing by the total interstate local 
switching minutes.
    (c) If the use made of the local exchange carrier's switched access 
network includes local transport, the interconnection charge to be 
assessed pursuant to paragraph (a) of this section shall be computed by 
dividing any interconnection charge revenues that

[[Page 513]]

the local exchange carrier anticipates will be reassigned to other, 
facilities-based rate elements in the future by the total interstate 
local transport minutes, and adding thereto the per minute amount 
calculated pursuant to paragraph (b) of this section.

[62 FR 66030, Dec. 17, 1997, as amended at 66 FR 59732, Nov. 30, 2001]



Sec. 69.125  Dedicated signalling transport.

    (a) Dedicated signalling transport shall consist of two elements, a 
signalling link charge and a signalling transfer point (STP) port 
termination charge.
    (b)(1) A flat-rated signalling link charge expressed in dollars and 
cents per unit of capacity shall be assessed upon all interexchange 
carriers and other persons that use facilities between an interexchange 
carrier or other person's common channel signalling network and a 
telephone company signalling transfer point or equivalent facilities 
offered by a telephone company. Signalling link charges may be distance-
sensitive. Distance shall be measured as airline kilometers between the 
signalling point of interconnection of the interexchange carrier's or 
other person's common channel signalling network and the telephone 
company's signalling transfer point.
    (2) Signalling link rates will generally be presumed reasonable if 
they are based on the interoffice charges for equivalent special access 
services. Telephone companies that have, before February 18, 1993, 
tariffed a signalling link service for signalling transport between the 
interexchange carrier's or other person's common channel signalling 
network and the telephone company's STP are permitted to use the rates 
that are in place.
    (c) A flat-rated STP port termination charge expressed in dollars 
and cents per port shall be assessed upon all interexchange carriers and 
other persons that use dedicated signalling transport.

[57 FR 54721, Nov. 20, 1992, as amended at 58 FR 41191, Aug. 3, 1993; 58 
FR 44950, Aug. 25, 1993; 62 FR 31935, June 11, 1997]



Sec. 69.128  Billing name and address.

    Appropriate subelements shall be established for the use of 
equipment or facilities that are associated with offerings of billing 
name and address.

[58 FR 36145, July 6, 1993]



Sec. 69.129  Signalling for tandem switching.

    A charge that is expressed in dollars and cents shall be assessed 
upon the purchasing entity by a local telephone company for provision of 
signalling for tandem switching.

[59 FR 32930, June 27, 1994]



Sec. 69.130  Line port costs in excess of basic analog service.

    To the extent that the costs of ISDN line ports, and line ports 
associated with other services, exceed the costs of a line port used for 
basic, analog service, non-price cap local exchange carriers may recover 
the difference through a separate monthly end-user charge, provided that 
no portion of such excess cost may be recovered through other common 
line access charges, or through Interstate Common Line Support.

[66 FR 59732, Nov. 30, 2001]



Sec. 69.131  Universal service end user charges.

    To the extent the company makes contributions to the Universal 
Service Support Mechanisms pursuant to Sec. Sec. 54.706 and 54.709 of 
this chapter and the non-price cap local exchange carrier seeks to 
recover some or all of the amount of such contribution, the non-price 
cap local exchange carrier shall recover those contributions through a 
charge to end users other than Lifeline users. The charge to recover 
these contributions is not part of any other element established 
pursuant to part 69. Such a charge may be assessed on a per-line basis 
or as a percentage of interstate retail revenues, and at the option of 
the local exchange carrier it may be combined for billing purposes with 
other end user retail rate elements. A non-price cap local exchange 
carrier opting to assess the Universal Service end-user rate element on 
a per-line basis may apply that charge using

[[Page 514]]

the ``equivalency'' relationships established for the multi-line 
business PICC for Primary Rate ISDN service, as per Sec. 69.153(d), and 
for Centrex lines, as per Sec. 69.153(e).

[66 FR 59732, Nov. 30, 2001]



 Subpart C_Computation of Charges for Price Cap Local Exchange Carriers

    Source: 62 FR 31935, June 11, 1997, unless otherwise noted.



Sec. 69.151  Applicability.

    This subpart shall apply only to telephone companies subject to the 
price cap regulations set forth in part 61 of this chapter.



Sec. 69.152  End user common line for price cap local exchange carriers.

    (a) A charge that is expressed in dollars and cents per line per 
month shall be assessed upon end users that subscribe to local exchange 
telephone service or Centrex service to the extent they do not pay 
carrier common line charges. A charge that is expressed in dollars and 
cents per line per month shall be assessed upon providers of public 
telephones. Such charge shall be assessed for each line between the 
premises of an end user, or public telephone location, and a Class 5 
office that is or may be used for local exchange service transmissions.
    (b) [Reserved]
    (c) The charge for each subscriber line associated with a public 
telephone shall be equal to the monthly charge computed in accordance 
with paragraph (k) of this section.
    (d)(1) Beginning July 1, 2000, in a study area that does not have 
deaveraged End User Common Line Charges, the maximum monthly charge for 
each primary residential or single-line business local exchange service 
subscriber line shall be the lesser of:
    (i) The Average Price Cap CMT Revenue per Line month as defined in 
Sec. 61.3(d) of this chapter; or
    (ii) The following:
    (A) On July 1, 2000, $4.35.
    (B) On July 1, 2001, $5.00.
    (C) On July 1, 2002, $6.00.
    (D) On July 1, 2003, $6.50.
    (2) In the event that GDP-PI exceeds 6.5% or is less than 0%, the 
maximum monthly charge in paragraph (d)(1)(ii) of this section and the 
cap will be adjusted pursuant to Sec. 61.45(b)(1)(iii) of this chapter.
    (e)(1) Beginning July 1, 2000, in a study area that does not have 
deaveraged End User Common Line Charges, the maximum monthly charge for 
each non-primary residential local exchange service subscriber line 
shall be the lesser of:
    (i) $7.00; or
    (ii) The greater of:
    (A) The rate as of June 30, 2000 less reductions needed to ensure 
over recovery of CMT Revenues does not occur; or
    (B) The Average Price Cap CMT Revenue per Line month as defined in 
Sec. 61.3(d) of this chapter.
    (2) In the event that GDP-PI is greater than 6.5% or is less than 
0%, the maximum monthly charge in paragraph (e)(1)(i) of this section 
and the cap will be adjusted pursuant to Sec. 61.45(b)(1)(iii) of this 
chapter.
    (3) Where the local exchange carrier provides a residential line to 
another carrier so that the other carrier may resell that residential 
line to a residence that already receives a primary residential line, 
the local exchange carrier may collect the non-primary residential 
charge described in paragraph (e) of this section from the other 
carrier.
    (f) The charge for each primary residential local exchange service 
subscriber line shall be the same as the charge for each single-line 
business local exchange service subscriber line.
    (g) A line shall be deemed to be a residential subscriber line if 
the subscriber pays a rate for such line that is described as a 
residential rate in the local exchange service tariff.
    (h) Effective July 1, 1999, only one of the residential subscriber 
lines a price cap local exchange carrier provides to a location shall be 
deemed to be a primary residential line.
    (1) Effective July 1, 1999, for purposes of Sec. 69.152(h) of this 
chapter, ``residential subscriber line'' includes residential lines that 
a price cap local exchange carrier provides to a competitive local 
exchange carrier that resells the line and on which the price cap

[[Page 515]]

local exchange carrier may assess access charges.
    (2) Effective July 1, 1999, if a customer subscribes to residential 
lines from a price cap local exchange carrier and at least one reseller 
of the price cap local exchange carrier's lines, the line sold by the 
price cap local exchange carrier shall be the primary line, except that 
if a resold price cap LEC line is already the primary line, the resold 
line will remain the primary line should a price cap local exchange 
carrier subsequently sell an additional line to that residence.
    (i) A line shall be deemed to be a single-line business subscriber 
line if the subscriber pays a rate that is not described as a 
residential rate in the local exchange service tariff and does not 
obtain more than one such line from a particular telephone company.
    (j) No charge shall be assessed for any WATS access line.
    (k)(1) Beginning on July 1, 2000, for any study area that does not 
have deaveraged End User Common Line charges and in the absence of 
voluntary reductions, the maximum monthly End User Common Line Charge 
for multi-line business lines will be the lesser of:
    (i) $9.20; or
    (ii) The greater of:
    (A) The rate as of June 30, 2000, less reductions needed to ensure 
over recovery of CMT Revenues does not occur; or
    (B) The Average Price Cap CMT Revenue per Line month as defined in 
Sec. 61.3(d) of this chapter.

    Note to paragraph (k)(1): Except when the local exchange carrier 
reduces the rate through voluntary reductions, the multi-line business 
End User Common Line charge will be frozen until the study area's multi-
line business PICC and CCL charge are eliminated.

    (2) In the event that GDP-PI is greater than 6.5% or is less than 
0%, the maximum monthly charge in paragraph (k)(1)(i) of this section 
and the cap will be adjusted pursuant to Sec. 61.45(b)(1)(iii) of this 
chapter.
    (l)(1) Beginning January 1, 1998, local exchange carrier shall 
assess no more than one End User Common Line charge as calculated under 
the applicable method under paragraph (e) of this section for Basic Rate 
Interface integrated services digital network (ISDN) service.
    (2) Local exchange carriers shall assess no more than five End User 
Common Line charges as calculated under paragraph (k) of this section 
for Primary Rate Interface ISDN service.
    (m) In the event the local exchange carrier charges less than the 
maximum End User Common Line charge for any subscriber lines, the local 
exchange carrier may not recover the difference between the amount 
collected and the maximum from carrier common line charges or PICCs.
    (n)-(p) [Reserved]
    (q) End User Common Line Charge De-Averaging. Beginning on July 1, 
2000, local exchange carriers may geographically deaverage End User 
Common Line charges subject to the following conditions:
    (1) In order for a price cap local exchange carrier to be allowed to 
de-average End User Common Line charges within a study area, the price 
cap local exchange carrier must have state Commission approved 
geographically deaveraged rates for UNE loops within that study area. 
Except where a LEC geographically deaverages through voluntary 
reductions, before a price cap local exchange carrier may geographically 
deaverage its End User Common Line rates, its Originating and 
Terminating CCL and Multi-line Business PICC rates in that study area 
must equal $0.00.
    (2) All geographic deaveraging of End User Common Line charges by 
customer class within a study area must be according to the state 
commission-approved UNE loop zone. Solely for the purposes of 
determining interstate subscriber line charges and the interstate access 
universal service support described in Sec. Sec. 54.806 and 54.807 of 
this chapter, a price cap local exchange carrier may not have more than 
four geographic End User Common Line Charge/Universal Service zones 
absent a review by the Commission. Where a price cap local exchange 
carrier has more than four state-created UNE zones and the Commission 
has not approved use of additional zones, the price cap local exchange 
carrier will determine, at its discretion, which state-created UNE zones 
to consolidate

[[Page 516]]

so that it has no more than four zones for the purpose of determining 
interstate subscriber line charges and interstate access universal 
service support.
    (3) Within a given zone, Multi-line Business End User Common Line 
rates cannot fall below Primary Residential and Single-Line Business or 
Non-Primary Residential End User Common Line charges. Non-Primary End 
User Common Line charges cannot fall below Primary Residential and 
Single-Line Business charges.
    (4) For any given class of customer in any given zone, the Zone 
deaveraged End User Common Line Charge in that zone must be greater than 
or equal to the Zone deaveraged End User Common Line charge in the zone 
with the next lower Zone Average Revenue Per Line.
    (5) The sum of all revenues per month that would be generated from 
all deaveraged End User Common Line charges in all zones within a study 
area plus Interstate Access Universal Service Support per Line month (as 
defined in Sec. 54.807 of this chapter) for the applicable customer 
classes and zones receiving such support multiplied by corresponding 
base period lines, divided by the number of base period lines in that 
study area cannot exceed Average Price Cap CMT Revenue per Line month as 
defined in Sec. 61.3(d) of this chapter for that study area. In 
addition, the sum of revenues per month that would be generated from all 
deaveraged End User Common Line charges in all End User Common Line 
charge deaveraging zones within a study area plus revenues per month 
from all End User Common Line charge, multi-line business PICC and CCL 
charges from study areas within that study area that have not 
geographically deaveraged End User Common Line charges plus the sum of 
all Interstate Access Universal Service Support per Line month (as 
defined in Sec. 54.807 of this chapter) for the applicable customer 
classes and zones receiving such support, multiplied by the 
corresponding base period lines for the applicable customer classes and 
zones within the study area, divided by the number of total base period 
lines in the study area cannot exceed Average Price Cap CMT Revenue per 
Line month as defined in Sec. 61.3(d) of this chapter for the study 
area.
    (6) Maximum charge. The maximum zone deaveraged End User Common Line 
Charge that may be charged in any zone is the applicable cap specified 
in Sec. 69.152(d)(1), Sec. 69.152(e)(1)(i) or Sec. 69.152 (k)(1)(i) 
Zone Average Revenue Per Line is the Average Price Cap CMT Revenue per 
Line month allocated to a particular state-defined zone used for 
deaveraging of UNE loop prices. The zone average revenue per line is 
computed pursuant to Sec. 61.3 (zz) of this chapter.
    (7) Minimum charge. Except where a local exchange carrier chooses to 
lower the deaveraged End User Common Line charge through voluntary 
reductions, the minimum zone deaveraged End User Common Line charge in 
any zone in a study area is at least the Minimum End User Common Line 
charge. Minimum End User Common Line charge is Zone Average Revenue Per 
Line for the zone with the lowest Zone Average Revenue Per Line in that 
study area plus an amount per line calculated to recover the difference 
between Interstate Access Universal Service Support Per Line (as defined 
in Sec. 54.807 of this chapter) multiplied by base period lines for the 
applicable customer class and zones receiving such support and Study 
Area Above Benchmark Revenues, first from Zone 1 until the End User 
Common Line charges in Zone 1 equal the End User Common Line charges in 
Zone 2, and then from lines in Zones 1 and 2 equally until the End User 
Common Line charges in those Zones reach Zone 3 (with all End User 
Common Line charges subject to the applicable residential and multi-line 
business lines nominal caps).
    (i) For the purposes of this part, ``Study Area Above Benchmark 
Revenues'' is the sum of all Zone Above Benchmark Revenues.
    (ii) For the purposes of this part, ``Zone Above Benchmark 
Revenues'' is calculated as follows:
    Zone Above Benchmark Revenues is the sum of Zone Above Benchmark 
Revenues for Residential and Single-line Business lines and Zone Above 
Benchmark Revenues for Multi-line Business lines. Zone Above Benchmark 
Revenues for Residential and Single-

[[Page 517]]

line Business lines is, within each zone, (Zone Average Revenue Per Line 
minus $7.00) multiplied by all eligible telecommunications carrier Base 
Period Residential and Single-line Business lines times 12. If negative, 
the Zone Above Benchmark Revenues for Residential and Single-line 
Business lines for the zone is zero. Zone Above Benchmark Revenues for 
Multi-line Business lines is, within each zone,
    (Zone Average Revenue Per Line minus $9.20) multiplied by all 
eligible telecommunications carrier zone Base Period Multi-line Business 
lines times 12. If negative, the Zone Above Benchmark Revenues for 
Multi-line Business lines for the zone is zero.
    (8) Voluntary Reductions. A ``Voluntary Reduction'' is one in which 
the local exchange carrier reduces prices other than through offset of 
net increases in End User Common Line charge revenues or Interstate 
Access Universal Service support received pursuant to Sec. 54.807 of 
this chapter, or through increases in other zone deaveraged End User 
Common Line charges.

[65 FR 38701, June 21, 2000; 65 FR 57744, Sept. 26, 2000]



Sec. 69.153  Presubscribed interexchange carrier charge (PICC).

    (a) A charge expressed in dollars and cents per line may be assessed 
upon the Multi-line business subscriber's presubscribed interexchange 
carrier to recover revenues totaling Average Price Cap CMT Revenues per 
Line month times the number of base period lines less revenues recovered 
through the End User Common Line charge established under Sec. 69.152 
and Interstate Access Universal Service Support Per Line (as defined in 
Sec. 54.807 of this chapter) multiplied by base period lines for the 
applicable customer class and zones receiving such support, up to a 
maximum of $4.31 per line per month. In the event the ceilings on the 
PICC prevent the PICC from recovering all the residual common line/
marketing and residual interconnection charge revenues, the PICC shall 
recover all residual common line/marketing revenues before it recovers 
residual interconnection charge revenues.
    (b) If an end-user customer does not have a presubscribed 
interexchange carrier, the local exchange carrier may collect the PICC 
directly from the end user.
    (c) [Reserved]
    (d) Local exchange carriers shall assess no more than five PICCs as 
calculated under paragraph (a) of this section for Primary Rate 
Interface ISDN service.
    (e) The maximum monthly PICC for Centrex lines shall be one-ninth of 
the maximum charge determined under paragraph (a) of this section, 
except that if a Centrex customer has fewer than nine lines, the maximum 
monthly PICC for those lines shall be the maximum charge determined 
under paragraph (a) of this section divided by the customer's number of 
Centrex lines.
    (f) The PICC shall not be applicable to any payphone lines.
    (g)-(h) [Reserved]

[65 FR 38703, June 21, 2000; 65 FR 57744, Sept. 26, 2000, as amended at 
68 FR 43329, July 22, 2003]



Sec. 69.154  Per-minute carrier common line charge.

    (a) Local exchange carriers may recover a per-minute carrier common 
line charge from interexchange carriers, collected on originating access 
minutes and calculated using the weighting method set forth in paragraph 
(c) of this section. The maximum such charge shall be the lower of:
    (1) The per-minute rate using base period demand that would recover 
the maximum allowable carrier common line revenue as defined in Sec. 
61.46(d) of this chapter; or
    (2) The sum of the local switching, carrier common line and 
interconnection charge charges assessed on originating minutes on 
December 31, 1997, minus the local switching charges assessed on 
originating minutes.
    (b) To the extent that paragraph (a) of this section does not 
recover from interexchange carriers all permitted carrier common line 
revenue, the excess may be collected through a per-minute charge on 
terminating access calculated using the weighting method set forth in 
paragraph (c) of this section.

[[Page 518]]

    (c) For each Carrier Common Line access element tariff, the premium 
originating Carrier Common Line charge shall be set at a level that 
recovers revenues allowed under paragraphs (a) and (b) of this section. 
The non-premium charges shall be equal to .45 multiplied by the premium 
charges.

[62 FR 31935, June 11, 1997, as amended at 65 FR 38703, June 21, 2000]



Sec. 69.155  Per-minute residual interconnection charge.

    (a) Local exchange carriers may recover a per-minute residual 
interconnection charge on originating access. The maximum such charge 
shall be the lower of:
    (1) The per-minute rate that would recover the total annual residual 
interconnection charge revenues permitted less the portion of the 
residual interconnection charge allowed to be recovered under Sec. 
69.153; or
    (2) The sum of the local switching, carrier common line and residual 
interconnection charges assessed on originating minutes on December 31, 
1997, minus the local switching charges assessed on originating minutes, 
less the maximum amount allowed to be recovered under Sec. 69.154(a).
    (b) To the extent that paragraph (a) of this section prohibits a 
local exchange carrier from recovering all of the residual 
interconnection charge revenues permitted, the residual may be collected 
through a per-minute charge on terminating access.
    (c)(1) No portion of the charge assessed pursuant to paragraphs (a) 
or (b) of this section that recovers revenues that the local exchange 
carrier anticipates will be reassigned to other, facilities-based rate 
elements, including the tandem-switching rate element described in Sec. 
69.111(g), the three-part tandem switched transport rate structure 
described in Sec. 69.111(a)(2), and port and multiplexer charges 
described in Sec. 69.111(l), shall be assessed upon minutes utilizing 
the local exchange carrier's local switching facilities, but not the 
local exchange carrier's transport service.
    (2) If a local exchange carrier cannot recover its full residual 
interconnection charge revenues through the PICC mechanism established 
in Sec. 69.153, and will consequently cover a portion of its residual 
interconnection charge revenues through per-minute charges assessed 
pursuant to paragraphs (a) and (b) of this section, then the local 
exchange carrier must allocate its residual interconnection charge 
revenues subject to the exemption established in paragraph (c)(1) of 
this section between the PICC and the per-minute residual 
interconnection charge in the same proportion as other residual 
interconnection charge revenues are allocated between these two recovery 
mechanisms.

[62 FR 31938, June 11, 1997; 62 FR 40460, July 29, 1997, as amended at 
62 FR 56133, Oct. 29, 1997]



Sec. 69.156  Marketing expenses.

    Effective July 1, 2000, the marketing expenses formerly allocated to 
the common line and traffic sensitive baskets, and the switched services 
within the trunking basket pursuant to Sec. 32.6610 of this chapter and 
Sec. 69.403 will now be recovered in the CMT basket created pursuant to 
Sec. 61.42(d)(1) of this chapter. These marketing expenses will be 
recovered through the elements outlined in Sec. Sec. 69.152, 69.153 and 
69.154.

[65 FR 38703, June 21, 2000]



Sec. 69.157  Line port costs in excess of basic, analog service.

    To the extent that the costs of ISDN line ports, and line ports 
associated with other services, exceed the costs of a line port used for 
basic, analog service, local exchange carriers may recover the 
difference through a separate monthly end-user charge. As of June 30, 
2000, these rates will be capped until June 30, 2005.

[65 FR 38704, June 21, 2000; 65 FR 57744, Sept. 26, 2000]



Sec. 69.158  Universal service end user charges.

    To the extent the company makes contributions to the Universal 
Service Support Mechanisms pursuant to Sec. Sec. 54.706 and 54.709 of 
this chapter and the local exchange carrier seeks to recover some or all 
of the amount of such contribution, the local exchange carrier shall 
recover those contributions through a charge to end users other

[[Page 519]]

than Lifeline users. These contributions are not a part of any price cap 
baskets, and the charge to recover these contributions is not part of 
any other element established pursuant to part 69. Such a charge may be 
assessed on a per-line basis or as a percentage of interstate retail 
revenues, and at the option of the local exchange carrier it may be 
combined for billing purposes with other end user retail rate elements. 
A local exchange carrier opting to assess the Universal Service end-user 
rate element on a per-line basis may apply that charge using the 
``equivalency'' relationships established for the multi-line business 
PICC for Primary Rate ISDN service, as per Sec. 69.153(d), and for 
Centrex lines, as per Sec. 69.153(e).

[65 FR 38704, June 21, 2000; 65 FR 57744, Sept. 26, 2000]



                Subpart D_Apportionment of Net Investment

    Source: 52 FR 37312, Oct. 6, 1987, unless otherwise noted.



Sec. 69.301  General.

    (a) For purposes of computing annual revenue requirements for access 
elements net investment as defined in Sec. 69.2 (z) shall be 
apportioned among the interexchange category, the billing and collection 
category and access elements as provided in this subpart. For purposes 
of this subpart, local transport includes five elements: entrance 
facilities, direct-trunked transport, tandem-switched transport, 
dedicated signaling transport, and the interconnection charge. Expenses 
shall be apportioned as provided in subpart E of this part.
    (b) The End User Common Line and Carrier Common Line elements shall 
be combined for purposes of this subpart and subpart E of this part. 
Those elements shall be described collectively as the Common Line 
element. The Common Line element revenue requirement shall be segregated 
in accordance with subpart F of this part.

[52 FR 37312, Oct. 6, 1987, as amended at 57 FR 54722, Nov. 20, 1992]



Sec. 69.302  Net investment.

    (a) Investment in Accounts 2001, 1220 and Class B Rural Telephone 
Bank Stock booked in Account 1410 shall be apportioned among the 
interexchange category, billing and collection category and appropriate 
access elements as provided in Sec. Sec. 69.303 through 69.309.
    (b) Investment in Accounts 2002, 2003 and to the extent such 
inclusions are allowed by this Commission, Account 2005 shall be 
apportioned on the basis of the total investment in Account 2001, 
Telecommunications Plant in Service.

[52 FR 37312, Oct. 6, 1987, as amended at 54 FR 3456, Jan. 24, 1989; 67 
FR 5703, Feb. 6, 2002]



Sec. 69.303  Information origination/termination equipment (IOT).

    Investment in all other IOT shall be apportioned between the Special 
Access and Common Line elements on the basis of the relative number of 
equivalent lines in use, as provided herein. Each interstate or foreign 
Special Access Line, excluding lines designated in Sec. 69.115(e), 
shall be counted as one or more equivalent lines where channels are of 
higher than voice bandwidth, and the number of equivalent lines shall 
equal the number of voice capacity analog or digital channels to which 
the higher capacity is equivalent. Local exchange subscriber lines shall 
be multiplied by the interstate Subscriber Plant Factor to determine the 
number of equivalent local exchange subscriber lines.

[52 FR 37312, Oct. 6, 1987, as amended at 62 FR 31938, June 11, 1997]



Sec. 69.304  Subscriber line cable and wire facilities.

    (a) Investment in local exchange subscriber lines shall be assigned 
to the Common Line element.
    (b) Investment in interstate and foreign private lines and 
interstate WATS access lines shall be assigned to the Special access 
element.

[52 FR 37312, Oct. 6, 1987, as amended at 62 FR 31938, June 11, 1997]

[[Page 520]]



Sec. 69.305  Carrier cable and wire facilities (C&WF).

    (a) Carrier C&WF that is not used for ``origination'' or 
``termination'' as defined in Sec. 69.2(bb) and Sec. 69.2(cc) shall be 
assigned to the interexchange category.
    (b) Carrier C&WF, other than WATS access lines, not assigned 
pursuant to paragraph (a), (c), or (e) of this section that is used for 
interexchange services that use switching facilities for origination and 
termination that are also used for local exchange telephone service 
shall be apportioned to the local Transport elements.
    (c) Carrier C&WF that is used to provide transmission between the 
local exchange carrier's signalling transfer point and the database 
shall be assigned to the Line Information Database sub-element at Sec. 
69.120(a).
    (d) All Carrier C&WF that is not apportioned pursuant to paragraphs 
(a), (b), (c), and (e) of this section shall be assigned to the Special 
Access element.
    (e) Carrier C&WF that is used to provide transmission between the 
local exchange carrier's signalling transfer point and the local switch 
shall be assigned to the local switching category.

[52 FR 37312, Oct. 6, 1987, as amended at 57 FR 24380, June 9, 1992; 58 
FR 30995, May 28, 1993; 62 FR 31938, June 11, 1997]



Sec. 69.306  Central office equipment (COE).

    (a) The Separations Manual categories shall be used for purposes of 
apportioning investment in such equipment except that any Central office 
equipment attributable to local transport shall be assigned to the 
Transport elements.
    (b) COE Category 1 (Operator Systems Equipment) shall be apportioned 
among the interexchange category and the access elements as follows: 
Category 1 that is used for intercept services shall be assigned to the 
Local Switching element. Category 1 that is used for directory 
assistance shall be assigned to the Information element. Category 1 
other than service observation boards that is not assigned to the 
Information element and is not used for intercept services shall be 
assigned to the interexchange category. Service observation boards shall 
be apportioned among the interexchange category, and the Information and 
Transport access elements based on the remaining combined investment in 
COE Category 1, Category 2 and Category 3.
    (c) COE Category 2 (Tandem Switching Equipment) that is deemed to be 
exchange equipment for purposes of the Modification of Final Judgment in 
United States v. Western Electric Co. shall be assigned to the tandem 
switching charge subelement and the interconnection charge element. COE 
Category 2 which is associated with the signal transfer point function 
shall be assigned to the local switching category. COE Category 2 which 
is used to provide transmission facilities between the local exchange 
carrier's signalling transfer point and the database shall be assigned 
to the Line Information Database subelement at Sec. 69.120(a). All 
other COE Category 2 shall be assigned to the interexchange category.
    (d) COE Category 3 (Local Switching Equipment) shall be assigned to 
the Local Switching element except as provided in paragraph (a) of this 
section; and that,
    (1) For telephone companies subject to price cap regulation set 
forth in part 61 of this chapter, line-side port costs shall be assigned 
to the Common Line rate element; and
    (2) Until June 30, 2012, for non-price cap local exchange carriers, 
line-side port costs shall be assigned to the Common Line rate element. 
Such amount shall be determined after any local switching support has 
been removed from the interstate Local Switching revenue requirement. 
Non-price cap local exchange carriers may use thirty percent of the 
interstate Local Switching revenue requirement, minus any local 
switching support, as a proxy for allocating line port costs to the 
Common Line category.
    (3) Beginning July 1, 2012, a non-price cap local exchange carrier 
shall assign line-side port costs to the Common Line rate element equal 
to the amount of line-side port costs it shifted in its 2011 projected 
Interstate Switched Access Revenue Requirement.
    (e) COE Category 4 (Circuit Equipment) shall be apportioned among 
the

[[Page 521]]

interexchange category and the Common Line, Transport, and Special 
Access elements. COE Category 4 shall be apportioned in the same 
proportions as the associated Cable and Wireless Facilities; except that 
any DS1/voice-grade multiplexer investment associated with analog local 
switches and assigned to the local transport category by this section 
shall be reallocated to the local switching category.

[52 FR 37312, Oct. 6, 1987, as amended at 57 FR 54722, Nov. 20, 1992; 58 
FR 30995, May 28, 1993; 62 FR 31938, June 11, 1997; 66 FR 59732, Nov. 
30, 2001; 78 FR 26269, May 6, 2013]



Sec. 69.307  General support facilities.

    (a) General purpose computer investment used in the provision of the 
Line Information Database sub-element at Sec. 69.120(b) shall be 
assigned to that sub-element.
    (b) General purpose computer investment used in the provision of the 
billing name and address element at Sec. 69.128 shall be assigned to 
that element.
    (c)(1) Until June 30, 2002, for all local exchange carriers not 
subject to price cap regulation and for other carriers that acquire all 
of the billing and collection services that they provide to 
interexchange carriers from unregulated affiliates through affiliate 
transactions, from unaffiliated third parties, or from both of these 
sources, all other General Support Facilities investments shall be 
apportioned among the interexchange category, the billing and collection 
category, and Common Line, Local Switching, Information, Transport, and 
Special Access elements on the basis of Central Office Equipment, 
Information Origination/Termination Equipment, and Cable and Wire 
Facilities, combined.
    (2) Beginning July 1, 2002, for all local exchange carriers that 
acquire all of the billing and collection services that they provide to 
interexchange carriers from unregulated affiliates through affiliate 
transactions, from unaffiliated third parties, or from both of these 
sources, all other General Support Facilities investments shall be 
apportioned among the interexchange category, the billing and collection 
category, and Common Line, Local Switching, Information, Transport, and 
Special Access elements on the basis of Central Office Equipment, 
Information Origination/Termination Equipment, and Cable and Wire 
Facilities, combined.
    (d) For local exchange carriers subject to price cap regulation and 
not covered by Section 69.307(c), a portion of General purpose computer 
investment (Account 2124), investment in Land (Account 2111), Buildings 
(Account 2121), and Office equipment (Account 2123) shall be apportioned 
to the billing and collection category on the basis of the Big Three 
Expense Factors allocator, defined in Section 69.2 of this Part, 
modified to exclude expenses that are apportioned on the basis of 
allocators that include General Support Facilities investment. The 
remaining portion of investment in these four accounts together with all 
other General Support Facilities investments shall be apportioned among 
the interexchange category, the billing and collection category, and 
Common Line, Local Switching, Information, Transport, and Special Access 
Elements on the basis of Central Office Equipment, Information 
Origination/Termination Equipment, and Cable and Wire Facilities, 
combined.
    (e) Beginning July 1, 2002, for non-price cap local exchange 
carriers not covered by Sec. 69.307(c)(2), a portion of General purpose 
computer investment shall be apportioned to the billing and collection 
category on the basis of the Big Three Expense Factors allocator, 
defined in Sec. 69.2, modified to exclude expenses that are apportioned 
on the basis of allocators that include General Support Facilities 
investment. The remaining General Support Facilities investments shall 
be apportioned among the interexchange category, the billing and 
collection category, and Common Line, Local Switching, Information, 
Transport, and Special Access Elements on the basis of Central Office 
Equipment, Information Origination/Termination Equipment, and Cable and 
Wire Facilities, combined.

[58 FR 30995, May 28, 1993, as amended at 58 FR 36145, July 6, 1993; 62 
FR 31939, June 11, 1997; 62 FR 40464, July 29, 1997; 62 FR 65622, Dec. 
15, 1997; 66 FR 59732, Nov. 30, 2001]

[[Page 522]]



Sec. 69.308  [Reserved]



Sec. 69.309  Other investment.

    Investment that is not apportioned pursuant to Sec. Sec. 69.302 
through 69.307 shall be apportioned among the interexchange category, 
the billing and collection category and access elements in the same 
proportions as the combined investment that is apportioned pursuant to 
Sec. Sec. 69.303 through 69.307.

[62 FR 31939, June 11, 1997]



Sec. 69.310  Capital leases.

    Capital Leases in Account 2680 shall be directly assigned to the 
appropriate interexchange category or access elements consistent with 
the treatment prescribed for similar plant costs or shall be apportioned 
in the same manner as Account 2001.



                   Subpart E_Apportionment of Expenses

    Source: 52 FR 37313, Oct. 6, 1987, unless otherwise noted.



Sec. 69.401  Direct expenses.

    (a) Plant Specific Operations Expenses in Accounts 6110 and 6120 
shall be apportioned among the interexchange category, the billing and 
collection category and appropriate access elements on the following 
basis:
    (1) Account 6110--Apportion on the basis of other investment 
apportioned pursuant to Sec. 69.309.
    (2) Account 6120--Apportion on the basis of General and Support 
Facilities investment pursuant to Sec. 69.307.
    (b) Plant Specific Operations Expenses in Accounts 6210, 6220, and 
6230, shall be apportioned among the interexchange category and access 
elements on the basis of the apportionment of the investment in Accounts 
2210, 2220, and 2230, respectively; provided that any expenses 
associated with DS1/voice-grade multiplexers, to the extent that they 
are not associated with an analog tandem switch, assigned to the local 
transport category by this paragraph shall be reallocated to the local 
switching category; provided further that any expenses associated with 
common channel signalling included in Account 6210 shall be assigned to 
the local transport category.
    (c) Plant Specific Operations Expenses in Accounts 6310 and 6410 
shall be assigned to the appropriate investment category and shall be 
apportioned among the interexchange category and access elements in the 
same proportions as the total associated investment.
    (d) Plant Non Specific Operations Expenses in Accounts 6510 and 6530 
shall be apportioned among the interchange category, the billing and 
collection category, and access elements in the same proportions as the 
combined investment in COE, IOT, and C&WF apportioned to each element 
and category.
    (e) Plant Non Specific Operations Expenses in Account 6540 shall be 
assigned to the interexchange category.
    (f) Plant Non Specific Operations Expenses in Account 6560 shall be 
apportioned among the interexchange category, the billing and collection 
category, and access elements in the same proportion as the associated 
investment.
    (g) Amortization of embedded customer premises wiring investment 
shall be deemed to be associated with Sec. 69.303(b) IOT investment for 
purposes of the apportionment described in paragraph (c) of this 
section.

[52 FR 37313, Oct. 6, 1987, as amended at 62 FR 31939, June 11, 1997]



Sec. 69.402  Operating taxes (Account 7200).

    (a) Federal income taxes, state and local income taxes, and state 
and local gross receipts or gross earnings taxes that are collected in 
lieu of a corporate income tax shall be apportioned among the 
interexchange category, the billing and collection category and all 
access elements based on the approximate net taxable income on which the 
tax is levied (positive or negative) applicable to each element and 
category.
    (b) All other operating taxes shall be apportioned among the 
interexchange category, the billing and collection category and all 
access elements in the same manner as the investment apportioned to each 
element and category pursuant to Sec. 69.309 Other Investment.

[[Page 523]]



Sec. 69.403  Marketing expense (Account 6610).

    Marketing expense shall be apportioned among the interexchange 
category and all access elements in the same proportions as the combined 
investment that is apportioned pursuant to Sec. 69.309.



Sec. 69.404  Telephone operator services expenses in Account 6620.

    Telephone Operator Services expenses shall be apportioned among the 
interexchange category, and the Local Switching and Information elements 
based on the relative number of weighted standard work seconds. For 
those companies who contract with another company for the provision of 
these services, the expenses incurred shall be directly assigned among 
the interexchange category and the Local Switching and Information 
elements on the basis of the bill rendered for the services provided.



Sec. 69.405  Published directory expenses in Account 6620.

    Published Directory expenses shall be assigned to the Information 
element.



Sec. 69.406  Local business office expenses in Account 6620.

    (a) Local business office expenses shall be assigned as follows:
    (1) End user service order processing expenses attributable to 
presubscription shall be apportioned among the Common Line, Switching, 
and Transport elements in the same proportion as the investment 
apportioned to those elements pursuant to Sec. 69.309.
    (2) End user service order processing, payment and collection, and 
billing inquiry expenses attributable to the company's own interstate 
private line and special access service shall be assigned to the Special 
Access element.
    (3) End user service order processing, payment and collection, and 
billing inquiry expenses attributable to interstate private line service 
offered by an interexhange carrier shall be assigned to the billing and 
collection category.
    (4) End user service order processing, payment and collection, and 
billing inquiry expenses attributable to the company's own interstate 
message toll service shall be assigned to the interexchange category. 
End user service order processing, payment and collection, and billing 
inquiry expenses attributable to interstate message toll service offered 
by an interexchange carrier shall be assigned to the billing and 
collection category. End user payment and collection and billing inquiry 
expenses attributable to End User Common Line access billing shall be 
assigned to the Common Line element.
    (5) End user service order processing, payment and collection, and 
billing inquiry expenses attributable to TWX service shall be assigned 
to the Special Access element.
    (6) Interexchange carrier service order processing, payment and 
collection, and billing inquiry expenses attributable to private lines 
and special access shall be assigned to the Special Access element.
    (7) Interexchange carrier service order processing, payment and 
collection, and billing inquiry expenses attributable to interstate 
switched access and message toll, shall be apportioned among the Common 
Line, Local Switching and Transport elements in the same proportion as 
the investment apportioned to those elements pursuant to Sec. 69.309.
    (8) Interexchange carrier service order processing, payment and 
collection, and billing inquiry expenses attributable to billing and 
collection service shall be assigned to the billing and collection 
category.

[52 FR 37313, Oct. 6, 1987, as amended at 62 FR 31939, June 11, 1997]



Sec. 69.407  Revenue accounting expenses in Account 6620.

    (a) Revenue accounting expenses that are attributable to End User 
Common Line access billings shall be assigned to the Common Line 
element.
    (b) Revenue Accounting Expenses that are attributable to carrier's 
carrier access billing and collecting expense shall be apportioned among 
all carrier's carrier access elements except the Common Line element. 
Such expenses shall be apportioned in the same proportion as the 
combined investment in COE, C&WF and IOT apportioned to those elements.

[[Page 524]]

    (c) Revenue Accounting Expenses allocated to the interstate 
jurisdiction that are attributable to the provision of billing name and 
address information shall be assigned to the Billing Name and Address 
element.
    (d) All other Revenue Accounting Expenses shall be assigned to the 
billing and collection category.

[52 FR 37313, Oct. 6, 1987, as amended at 58 FR 65671, Dec. 16, 1993]



Sec. 69.408  All other customer services expenses in Account 6620.

    All other customer services expenses shall be apportioned among the 
Interexchange category, the billing and collection category and all 
access elements based on the combined expenses in Sec. Sec. 69.404 
through 69.407.

[52 FR 37313, Oct. 6, 1987, as amended at 54 FR 3456, Jan. 24, 1989]



Sec. 69.409  Corporate operations expenses (included in Account 6720).

    All corporate operations expenses shall be apportioned among the 
interexchange category, the billing and collection category and all 
access elements in accordance with the Big 3 Expense Factor as defined 
in Sec. 69.2(f).



Sec. 69.411  Other expenses.

    Except as provided in Sec. Sec. 69.412, 69.413, and 69.414, 
expenses that are not apportioned pursuant to Sec. Sec. 69.401 through 
69.409 shall be apportioned among the interexchange category and all 
access elements in the same manner as Sec. 69.309 Other investment.

[62 FR 31639, June 11, 1997]



Sec. 69.412  Non participating company payments/receipts.

    For telephone companies that are not association Common Line tariff 
participants, the payment or receipt of funds described in Sec. 
69.612(a) and (b) shall be apportioned, respectively, as an addition to 
or a deduction from their common line revenue requirement.



Sec. 69.413  Universal service fund expenses.

    Expenses allocated to the interstate jurisdiction pursuant to 
Sec. Sec. 36.631 and 36.641 shall be assigned to the Carrier Common 
Line Element until March 31, 1989. Beginning April 1, 1989, such 
expenses shall be assigned to the Universal Service Fund Element.



Sec. 69.414  Lifeline assistance expenses.

    Expenses allocated to the interstate jurisdiction pursuant to Sec. 
36.741 shall be assigned to the Carrier Common Line element until March 
31, 1989. Beginning April 1, 1989, such expenses shall be assigned to 
the Lifeline Assistance element.



Sec. 69.415  Reallocation of certain transport expenses.

    (a) Beginning January 1, 2002, non-price cap local exchange carriers 
shall reallocate a portion of the costs otherwise assigned to the 
transport category to the common line, local switching, information, and 
special access elements.
    (b) Until June 30, 2012, the amount to be reallocated is limited to 
the total revenues recovered through the interconnection charge assessed 
pursuant to Sec. 69.124 for the 12-month period ending June 30, 2001.
    (c) Until June 30, 2012, the reallocation of the amount in paragraph 
(b) of this section shall be based on each access element's projected 
revenue requirement divided by the total revenue requirement of all the 
access elements, provided that:
    (1) Local switching support shall not be included in the local 
switching category's projected revenue requirement, or in the total 
projected revenue requirement;
    (2) A non-price cap local exchange carrier's universal service 
contribution shall not be included in the numerator or the denominator 
of the allocation formula;
    (3) The amount determined in paragraph (b) of this section shall be 
excluded from the transport revenue requirement and from the total 
projected revenue requirement for purposes of the allocation 
calculations; and
    (4) The common line revenue requirement shall include Interstate 
Common Line Support as provided in Sec. 54.901 of this chapter.
    (d) Beginning July 1, 2012, the amount of the Transport 
Interconnection Charges to be reallocated to each

[[Page 525]]

category shall be equal to the amount of Transport Interconnection 
Charge costs the non-price cap local exchange carrier was projected to 
shift to each category in projecting its 2011 Interstate Switched Access 
Revenue Requirement.

[66 FR 59733, Nov. 30, 2001, as amended at 78 FR 5750, Jan. 28, 2013; 78 
FR 26269, May 6, 2013]



    Subpart F_Segregation of Common Line Element Revenue Requirement



Sec. 69.501  General.

    (a) [Reserved]
    (b) Until December 31, 2001, any portion of the Common Line element 
annual revenue requirement that is attributable to CPE investment or 
expense or surrogate CPE investment or expense shall be assigned to the 
Carrier Common Line element or elements.
    (c) Until December 31, 2001, any portion of the Common Line element 
annual revenue requirement that is attributable to customer premises 
wiring included in IOT investment or expense shall be assigned to the 
Carrier Common Line element or elements.
    (d) [Reserved]
    (e) Until December 31, 2001, any portion of the Common Line element 
revenue requirement that is not assigned to Carrier Common Line elements 
pursuant to paragraphs (b) and (c) of this section shall be apportioned 
between End User Common Line and Carrier Common Line pursuant to Sec. 
69.502. Such portion of the Common Line element annual revenue 
requirement shall be described as the base factor portion for purposes 
of this subpart.
    (f) Beginning January 1, 2002, the Common Line element revenue 
requirement shall be apportioned between End User Common Line and 
Carrier Common Line pursuant to Sec. 69.502. The Common Line element 
annual revenue requirement shall be described as the base factor portion 
for purposes of this subpart.

[48 FR 10358, Mar. 11, 1983, as amended at 50 FR 18262, Apr. 30, 1985; 
52 FR 21542, June 8, 1987; 52 FR 37314, Oct. 6, 1987; 61 FR 65364, Dec. 
12, 1996; 62 FR 31939, June 11, 1997; 66 FR 59733, Nov. 30, 2001]



Sec. 69.502  Base factor allocation.

    Projected revenues from the following shall be deducted from the 
base factor portion to determine the amount that is assigned to the 
Carrier Common Line element:
    (a) End User Common Line charges, less any marketing expense 
revenues recovered through end user common line charges pursuant to 
Sec. 69.156;
    (b) Special Access surcharges; and
    (c) Beginning July 1, 2002, the portion of per-line support that 
carriers receive pursuant to Sec. 54.901 of this chapter; and
    (d) Line port costs in excess of basic analog service pursuant to 
Sec. 69.130.

[62 FR 31939, June 11, 1997, as amended at 62 FR 40464, July 29, 1997; 
66 FR 59733, Nov. 30, 2001; 78 FR 5750, Jan. 28, 2013]



                 Subpart G_Exchange Carrier Association



Sec. 69.601  Exchange carrier association.

    (a) An association shall be established in order to prepare and file 
access charge tariffs on behalf of all telephone companies that do not 
file separate tariffs or concur in a joint access tariff of another 
telephone company for all access elements.
    (b) All telephone companies that participate in the distribution of 
Carrier Common Line revenue requirement, pay long term support to 
association Common Line tariff participants, or receive payments from 
the transitional support fund administered by the association shall be 
deemed to be members of the association.
    (c) All data submissions to the association required by this title 
shall be accompanied by the following certification statement signed by 
the officer or employee responsible for the overall preparation for the 
data submission:

                              Certification

    I am (title of certifying officer or employee). I hereby certify 
that I have overall responsibility for the preparation of all data in 
the attached data submission for (name of carrier) and that I am 
authorized to execute this certification. Based on information known to 
me or provided to me by employees responsible for the preparation of the 
data in this submission, I hereby certify that the data have been 
examined and reviewed and are complete, accurate, and consistent with

[[Page 526]]

the rules of the Federal Communications Commission.
Date:___________________________________________________________________

Name:___________________________________________________________________

Title:__________________________________________________________________

(Persons making willful false statements in this data submission can be 
punished by fine or imprisonment under the provisions of the U.S. Code, 
Title 18, Section 1001).

[48 FR 10358, Mar. 11, 1983, as amended at 52 FR 21542, June 8, 1987; 60 
FR 19530, Apr. 19, 1995]



Sec. 69.602  Board of directors.

    (a) For purposes of this section, the association membership shall 
be divided into three subsets:
    (1) The first subset shall consist of the telephone companies owned 
and operated by the seven Regional Bell Holding Companies;
    (2) The second subset shall consist of all other telephone companies 
with annual operating revenues in excess of forty million dollars;
    (3) The third subset shall consist of all other telephone companies. 
All commonly controlled companies shall be deemed to be one company for 
purposes of this section.
    (b) There shall be fifteen directors of the association.
    (c) Two directors shall represent the first subset, two directors 
shall represent the second subset, six directors shall represent the 
third subset, and five directors shall represent all three subsets.
    (d) No director who represents all three subsets shall be a current 
or former officer or employee of the association or of any association 
member, or have a business relationship or other interest that could 
interfere with his or her exercise of independent judgment.
    (e) Each subset of the association membership shall select the 
directors who will represent it through elections in which each member 
of the subset shall be entitled to one vote for each director position 
within that subset.
    (f) The association membership shall select the directors who will 
represent all three subsets through an election in which each member of 
the association shall be entitled to one vote for each director 
position. No director representing all three subsets may serve for more 
than six consecutive calendar years without standing for an election in 
which that director is opposed by at least one other candidate meeting 
the qualifications in paragraph (d) of this section.
    (g) At least one director representing all three subsets shall be a 
member of each committee of association directors.
    (h) For each access element or group of access elements for which 
voluntary pooling is permitted, there shall be a committee that is 
responsible for the preparation of charges for the associated access 
elements that comply with all applicable sections in this part.

[60 FR 19530, Apr. 19, 1995, as amended at 68 FR 46502, Aug. 6, 2003]



Sec. 69.603  Association functions.

    (a) The Association shall not engage in any activity that is not 
related to the preparation of access charge tariffs or the collection 
and distribution of access charge revenues or the operation of a billing 
and collection pool on an untariffed basis unless such activity is 
expressly authorized by order of the Commission.
    (b) Participation in Commission or court proceedings relating to 
access charge tariffs, the billing and collection of access charges, the 
distribution of access charge revenues, or the operation of a billing 
and collection pool on an untariffed basis shall be deemed to be 
authorized association activities.
    (c)-(e) [Reserved]
    (f) The association shall also prepare and file an access charge 
tariff containing terms and conditions for access service and form for 
the filing of rate schedules by telephone companies that choose to 
reference these terms and conditions while filing their own access 
rates.
    (g) The association shall divide the expenses of its operations into 
two categories. The first category (``Category I Expenses'') shall 
consist of those expenses that are associated with the preparation, 
defense, and modification of association tariffs, those expenses that 
are associated with the administration of pooled receipts and 
distributions of exchange carrier revenues resulting from association 
tariffs, those

[[Page 527]]

expenses that are associated with association functions pursuant to 
Sec. 69.603 (c)-(g), and those expenses that pertain to Commission 
proceedings involving subpart G of part 69 of the Commission's rules. 
The second category (``Category II Expenses'') shall consist of all 
other association expenses. Category I Expenses shall be sub-divided 
into three components in proportion to the revenues associated with each 
component. The first component (``Category I.A Expenses'') shall be in 
proportion to the Universal Service Fund and Lifeline Assistance 
revenues. The second component (``Category I.B Expenses'') shall be in 
proportion to the sum of the association End User Common Line revenues, 
the association Carrier Common Line revenues, the association Special 
Access Surcharge revenues, the Long Term Support payments and the 
Transitional Support payments. Beginning July 1, 2002, Interstate Common 
Line Support revenues shall be included in the allocation base for 
Category I.B expenses. The third component (``Category I.C Expenses'') 
shall be in proportion to the revenues from all other association 
interstate access charges.
    (h)(1) The revenue requirement for association tariffs filed 
pursuant to Sec. 69.4(c) shall not include any association expenses 
other than Category I.A Expenses.
    (2) The revenue requirement for association tariffs filed pursuant 
to Sec. 69.4 (a) and (b)(2) shall not include any Association expenses 
other than Category I.B Expenses.
    (3) The revenue requirement for association tariffs filed pursuant 
to Sec. 69.4(b) (1) and (3)-(7) shall not include any association 
expenses other than Category I.C Expenses.
    (4) No distribution to an exchange carrier of Universal Service Fund 
and Lifeline Assistance revenues shall include adjustments for 
association expenses other than Category I.A Expenses.
    (5) No distribution to an exchange carrier of revenues from 
association End User Common Line or Carrier Common Line charges, Special 
Access Surcharges or Long Term Support or Transitional Support payments 
shall include adjustments for association expenses other than Category 
I.B Expenses. Beginning July 1, 2002, Interstate Common Line Support 
shall be subject to this provision.
    (6) No distribution to an exchange carrier of revenues from 
association interstate access charges other than End User Common Line 
and Carrier Common Line charges and Special Access Surcharges shall 
include adjustments for association expenses other than Category I.C 
Expenses.
    (7) The association shall separately identify all Category I.A, I.B 
and I.C expenses in cost support materials filed with each annual 
association access tariff filing.

[54 FR 8197, Feb. 27, 1989, as amended at 54 FR 8199, Feb. 27, 1989; 62 
FR 41306, Aug. 1, 1997; 63 FR 70578, Dec. 21, 1998; 66 FR 59733, Nov. 
30, 2001]



Sec. 69.604  Billing and collection of access charges.

    (a) Telephone companies shall bill and collect all access charges 
except those charges specified in Sec. Sec. 69.116 and 69.117.
    (b) All access charges shall be billed monthly.

[51 FR 9012, Mar. 17, 1986, as amended at 52 FR 21543, June 8, 1987]



Sec. 69.605  Reporting and distribution of pool access revenues.

    (a) Access revenues and cost data shall be reported by participants 
in association tariffs to the association for computation of monthly 
pool revenues distributions in accordance with this subpart.
    (b) Association expenses incurred during the month that are 
allowable access charge expenses shall be reimbursed before any other 
funds are disbursed.
    (c) Except as provided in paragraph (b) of this section, payments to 
average schedule companies that are computed in accordance with Sec. 
69.606 shall be disbursed before any other funds are disbursed. For 
purposes of this part, a telephone company that was participating in 
average schedule settlements on December 1, 1982, shall be deemed to be 
an average schedule company except that any company that does not join 
in

[[Page 528]]

association tariffs for all access elements shall not be deemed to be an 
average schedule company.
    (d) The residue shall be disbursed to telephone companies that are 
not average schedule companies in accordance with Sec. Sec. 69.607 
through 69.610.
    (e) The association shall submit a report on or before February 1 of 
each calendar year describing the association's cost study review 
process for the preceding calendar year as well as the results of that 
process. For any revisions to cost study results made or recommended by 
the association that would change the respective carrier's calculated 
annual common line or traffic sensitive revenue requirement by ten 
percent or more, the report shall include the following information:
    (1) The name of the carrier;
    (2) A detailed description of the revisions;
    (3) The amount of the revisions;
    (4) The impact of the revisions on the carrier's calculated common 
line and traffic sensitive revenue requirements; and
    (5) The carrier's total annual common line and traffic sensitive 
revenue requirement.

[48 FR 10358, Mar. 11, 1983, as amended at 51 FR 17027, May 8, 1986; 52 
FR 21543, June 8, 1987; 54 FR 11537, Mar. 21, 1989; 60 FR 19530, Apr. 
19, 1995]



Sec. 69.606  Computation of average schedule company payments.

    (a) Payments shall be made in accordance with a formula approved or 
modified by the Commission. Such formula shall be designed to produce 
disbursements to an average schedule company that simulate the 
disbursements that would be received pursuant to Sec. 69.607 by a 
company that is representative of average schedule companies.
    (b) The association shall submit a proposed revision of the formula 
for each annual period subsequent to December 31, 1986, or certify that 
a majority of the directors of the association believe that no revisions 
are warranted for such period on or before December 31 of the preceding 
year.

(47 U.S.C. 154 (i) and (j), 201, 202, 203, 205, 218 and 403 and 5 U.S.C. 
553)

[48 FR 10358, Mar. 11, 1983, as amended at 50 FR 41356, Oct. 10, 1985; 
55 FR 6990, Feb. 28, 1990]



Sec. 69.607  Disbursement of Carrier Common Line residue.

    (a) The association shall compute a monthly net balance for each 
member telephone company that is not an average schedule company. If 
such a company has a negative net balance, the association shall bill 
that amount to such company. If such a company has a positive net 
balance, the association shall disburse that amount to such company.
    (b) The net balance for such a company shall be computed by 
multiplying a hypothetical net balance for such a company by a factor 
that is computed by dividing the Carrier Common Line residue by the sum 
of the hypothetical net balances for such companies.
    (c) The hypothetical net balance for each company shall be the sum 
of the hypothetical net balances for each access element. Such 
hypothetical net balances shall be computed in accordance with 
Sec. Sec. 69.608 to 69.610.

[48 FR 10358, Mar. 11, 1983, as amended at 51 FR 42237, Nov. 24, 1986]



Sec. 69.608  Carrier Common Line hypothetical net balance.

    The hypothetical net balance shall be equal to a Carrier Common Line 
revenue requirement for each such company that is computed in accordance 
with subpart F of this part.



Sec. 69.609  End User Common Line hypothetical net balances.

    (a) If the company does not participate in the association tariff 
for such element, the hypothetical net balance shall be zero.
    (b) If the company does participate in the association tariff for 
such element, the hypothetical net balance shall be computed by 
multiplying an amount that is computed by deducting access revenues 
collected by such company for such element from an End User Common Line 
revenue requirement for such

[[Page 529]]

company that is computed in accordance with subpart F of this part by a 
factor that is computed by dividing access revenues collected by all 
such companies for such element by an End User Common Line revenue 
requirement for all such companies that is computed in accordance with 
subpart F of this part. For purposes of this calculation, access 
revenues collected shall include any revenues foregone because of a 
voluntary reduction made pursuant to Sec. 69.104(r)(7).

[48 FR 10358, Mar. 11, 1983, as amended at 66 FR 59733, Nov. 30, 2001]



Sec. 69.610  Other hypothetical net balances.

    (a) The hypothetical net balance for an access element other than a 
Common Line element shall be computed as provided in this section.
    (b) If the company does not participate in the association tariff 
for such element, the hypothetical net balance shall be zero.
    (c) If the company does participate in the association tariff for 
such element, the hypothetical net balance shall be computed by 
deducting access revenues collected for such element from the sum of 
expense attributable to such element and the element residue apportioned 
to such company. The element residue shall be apportioned among such 
companies in the same proportions as the net investment attributable to 
such element.
    (d) The element residue shall be computed by deducting expenses of 
all participating companies attributable to such element from revenues 
collected by all participating companies for such element.

[48 FR 10358, Mar. 11, 1983, as amended at 51 FR 42237, Nov. 24, 1986]



                      Subpart H_Pricing Flexibility

    Source: 64 FR 51267, Sept. 22, 1999, unless otherwise noted.



Sec. 69.701  Application of rules in this subpart.

    The rules in this subpart apply to all incumbent LECs subject to 
price cap regulation, as defined in Sec. 61.3(x) of this chapter, 
seeking pricing flexibility on the basis of the development of 
competition in parts of its service area.



Sec. 69.703  Definitions.

    For purposes of this subpart:
    (a) Channel terminations. (1) A channel termination between an IXC 
POP and a serving wire center is a dedicated channel connecting an IXC 
POP and a serving wire center, offered for purposes of carrying special 
access traffic.
    (2) A channel termination between a LEC end office and a customer 
premises is a dedicated channel connecting a LEC end office and a 
customer premises, offered for purposes of carrying special access 
traffic.
    (b) Metropolitan Statistical Area (MSA). This term shall have the 
definition provided in Sec. 22.909(a) of this chapter.
    (c) Interexchange Carrier Point of Presence (IXC POP). The point of 
interconnection between an interexchange carrier's network and a local 
exchange carrier's network.
    (d) Wire center. For purposes of this subpart, the term ``wire 
center'' shall refer to any location at which an incumbent LEC is 
required to provide expanded interconnection for special access pursuant 
to Sec. 64.1401(a) of this chapter, and any location at which an 
incumbent LEC is required to provide expanded interconnection for 
switched transport pursuant to Sec. 64.1401(b)(1) of this chapter.
    (e) Study area. A common carrier's entire service area within a 
state.



Sec. 69.705  Procedure.

    Price cap LECs filing petitions for pricing flexibility shall follow 
the procedures set forth in Sec. 1.774 of this chapter.



Sec. 69.707  Geographic scope of petition.

    (a) MSA. (1) A price cap LEC filing a petition for pricing 
flexibility in an MSA shall include data sufficient to support its 
petition, as set forth in this subpart, disaggregated by MSA.
    (2) A price cap LEC may request pricing flexibility for two or more 
MSAs in a single petition, provided that it submits supporting data 
disaggregated by MSA.
    (b) Non-MSA. (1) A price cap LEC will receive pricing flexibility 
with respect

[[Page 530]]

to those parts of a study area that fall outside of any MSA, provided 
that it provides data sufficient to support a finding that competitors 
have collocated in a number of wire centers in that non-MSA region 
sufficient to satisfy the criteria for the pricing flexibility sought in 
the petition, as set forth in this subpart, if the region at issue were 
an MSA.
    (2) The petitioner may aggregate data for all the non-MSA regions in 
a single study area for which it requests pricing flexibility in its 
petition.
    (3) A petitioner may request pricing flexibility in the non-MSA 
regions of two or more of its study areas, provided that it submits 
supporting data disaggregated by study area.



Sec. 69.709  Dedicated transport and special access services other than 

channel terminations between LEC end offices and customer premises.

    (a) Scope. This paragraph governs requests for pricing flexibility 
with respect to the following services:
    (1) Entrance facilities, as described in Sec. 69.110.
    (2) Transport of traffic over dedicated transport facilities between 
the serving wire center and the tandem switching office, as described in 
Sec. 69.111(a)(2)(iii).
    (3) Direct-trunked transport, as described in Sec. 69.112.
    (4) Special access services, as described in Sec. 69.114, other 
than channel terminations as defined in Sec. 69.703(a)(2) of this part.
    (b) Phase I triggers. To obtain Phase I pricing flexibility, as 
specified in Sec. 69.727(a) of this part, for the services described in 
paragraph (a) of this section, a price cap LEC must show that, in the 
relevant area as described in Sec. 69.707 of this part, competitors 
unaffiliated with the price cap LEC have collocated:
    (1) In fifteen percent of the petitioner's wire centers, and that at 
least one such collocator in each wire center is using transport 
facilities owned by a transport provider other than the price cap LEC to 
transport traffic from that wire center; or
    (2) In wire centers accounting for 30 percent of the petitioner's 
revenues from dedicated transport and special access services other than 
channel terminations between LEC end offices and customer premises, 
determined as specified in Sec. 69.725 of this part, and that at least 
one such collocator in each wire center is using transport facilities 
owned by a transport provider other than the price cap LEC to transport 
traffic from that wire center.
    (c) Phase II triggers. To obtain Phase II pricing flexibility, as 
specified in Sec. 69.727(b) of this part, for the services described in 
paragraph (a) of this section, a price cap LEC must show that, in the 
relevant area as described in Sec. 69.707 of this part, competitors 
unaffiliated with the price cap LEC have collocated:
    (1) in 50 percent of the petitioner's wire centers, and that at 
least one such collocator in each wire center is using transport 
facilities owned by a transport provider other than the price cap LEC to 
transport traffic from that wire center; or
    (2) in wire centers accounting for 65 percent of the petitioner's 
revenues from dedicated transport and special access services other than 
channel terminations between LEC end offices and customer premises, 
determined as specified in Sec. 69.725 of this part, and that at least 
one such collocator in each wire center is using transport facilities 
owned by a transport provider other than the price cap LEC to transport 
traffic from that wire center.



Sec. 69.711  Channel terminations between LEC end offices and customer 

premises.

    (a) Scope. This paragraph governs requests for pricing flexibility 
with respect to channel terminations between LEC end offices and 
customer premises.
    (b) Phase I triggers. To obtain Phase I pricing flexibility, as 
specified in Sec. 69.727(a) of this part, for channel terminations 
between LEC end offices and customer premises, a price cap LEC must show 
that, in the relevant area as described in Sec. 69.707 of this part, 
competitors unaffiliated with the price cap LEC have collocated:
    (1) In 50 percent of the petitioner's wire centers, and that at 
least one such collocator in each wire center is using transport 
facilities owned by a transport provider other than the price cap

[[Page 531]]

LEC to transport traffic from that wire center; or
    (2) In wire centers accounting for 65 percent of the petitioner's 
revenues from channel terminations between LEC end offices and customer 
premises, determined as specified in Sec. 69.725 of this part, and that 
at least one such collocator in each wire center is using transport 
facilities owned by a transport provider other than the price cap LEC to 
transport traffic from that wire center.
    (c) Phase II triggers. To obtain Phase II pricing flexibility, as 
specified in Sec. 69.727(b) of this part, for channel terminations 
between LEC end offices and customer premises, a price cap LEC must show 
that, in the relevant area as described in Sec. 69.707, competitors 
unaffiliated with the price cap LEC have collocated:
    (1) In 65 percent of the petitioner's wire centers, and that at 
least one such collocator in each wire center is using transport 
facilities owned by a transport provider other than the price cap LEC to 
transport traffic from that wire center; or
    (2) In wire centers accounting for 85 percent of the petitioner's 
revenues from channel terminations between LEC end offices and customer 
premises, determined as specified in Sec. 69.725, and that at least one 
such collocator in each wire center is using transport facilities owned 
by a transport provider other than the price cap LEC to transport 
traffic from that wire center.



Sec. 69.713  Common line, traffic-sensitive, and tandem-switched transport 

services.

    (a) Scope. This paragraph governs requests for pricing flexibility 
with respect to the following services:
    (1) Common line services, as described in Sec. Sec. 69.152, 69.153, 
and 69.154.
    (2) Services in the traffic-sensitive basket, as described in Sec. 
61.42(d)(2) of this chapter.
    (3) The traffic-sensitive components of tandem-switched transport 
services, as described in Sec. Sec. 69.111(a)(2)(i) and (ii).
    (b) Phase I triggers. (1) To obtain Phase I pricing flexibility, as 
specified in Sec. 69.727(a), for the services identified in paragraph 
(a) of this section, a price cap LEC must provide convincing evidence 
that, in the relevant area as described in Sec. 69.707, its 
unaffiliated competitors, in aggregate, offer service to at least 15 
percent of the price cap LEC's customer locations.
    (2) For purposes of the showing required by paragraph (b)(1) of this 
section, the price cap LEC may not rely on service the competitors 
provide solely by reselling the price cap LEC's services, or provide 
through unbundled network elements as defined in Sec. 51.5 of this 
chapter, except that the price cap LEC may rely on service the 
competitors provide through the use of the price cap LEC's unbundled 
loops.
    (c) [Reserved]



Sec. Sec. 69.714-69.724  [Reserved]



Sec. 69.725  Attribution of revenues to particular wire centers.

    If a price cap LEC elects to show, in accordance with Sec. 69.709 
or Sec. 69.711, that competitors have collocated in wire centers 
accounting for a certain percentage of revenues from the services at 
issue, the LEC must make the following revenue allocations:
    (a) For entrance facilities and channel terminations between an IXC 
POP and a serving wire center, the petitioner shall attribute all the 
revenue to the serving wire center.
    (b) For channel terminations between a LEC end office and a customer 
premises, the petitioner shall attribute all the revenue to the LEC end 
office.
    (c) For any dedicated service routed through multiple wire centers, 
the petitioner shall attribute 50 percent of the revenue to the wire 
center at each end of the transmission path, unless the petitioner can 
make a convincing case in its petition that some other allocation would 
be more representative of the extent of competitive entry in the MSA or 
the non-MSA parts of the study area at issue.



Sec. 69.727  Regulatory relief.

    (a) Phase I relief. Upon satisfaction of the Phase I triggers 
specified in Sec. 69.709(b), Sec. 69.711(b), or Sec. 69.713(b) for an 
MSA or the non-MSA parts of a study area, a price cap LEC will be 
granted the following regulatory relief in that area for the services 
specified in

[[Page 532]]

Sec. 69.709(a), Sec. 69.711(a), or Sec. 69.713(a), respectively:
    (1) Volume and term discounts;
    (2) Contract tariff authority, provided that
    (i) Contract tariff services are made generally available to all 
similarly situated customers; and
    (ii) The price cap LEC excludes all contract tariff offerings from 
price cap regulation pursuant to Sec. 61.42(f)(1) of this chapter.
    (iii) Before the price cap LEC provides a contract tariffed service, 
under Sec. 69.727(a), to one of its long-distance affiliates, as 
described in section 272 of the Communications Act of 1934, as amended, 
or Sec. 64.1903 of this chapter, the price cap LEC certifies to the 
Commission that it provides service pursuant to that contract tariff to 
an unaffiliated customer.
    (b) Phase II relief. Upon satisfaction of the Phase II triggers 
specified in Sec. 69.709(c) or Sec. 69.711(c) for an MSA or the non-
MSA parts of a study area, a price cap LEC will be granted the following 
regulatory relief in that area for the services specified in Sec. Sec. 
69.709(a) or 69.711(a), respectively:
    (1) Elimination of the rate structure requirements in subpart B of 
this part;
    (2) Elimination of price cap regulation; and
    (3) Filing of tariff revisions on one day's notice, notwithstanding 
the notice requirements for tariff filings specified in Sec. 61.58 of 
this chapter.



Sec. 69.729  New services.

    (a) Except for new services subject to paragraph (b) of this 
section, a price cap LEC may obtain pricing flexibility for a new 
service that has not been incorporated into a price cap basket by 
demonstrating in its pricing flexibility petition that the new service 
would be properly incorporated into one of the price cap baskets and 
service bands for which the price cap LEC seeks pricing flexibility.
    (b) Notwithstanding paragraph (a) of this section, a price cap LEC 
must demonstrate satisfaction of the triggers in Sec. 69.711(b) to be 
granted pricing flexibility for any new service that falls within the 
definition of a ``channel termination between a LEC end office and a 
customer premises'' as specified in Sec. 69.703(a)(2).



Sec. 69.731  Low-end adjustment mechanism.

    (a) Any price cap LEC obtaining Phase I or Phase II pricing 
flexibility for any service in any MSA in its service region, or for the 
non-MSA portion of any study area in its service region, shall be 
prohibited from making any low-end adjustment pursuant to Sec. 
61.45(d)(1)(vii) of this chapter in all or part of its service region.
    (b) Any affiliate of any price cap LEC obtaining Phase I or Phase II 
pricing flexibility for any service in any MSA in its service region 
shall be prohibited from making any low-end adjustment pursuant to Sec. 
61.45(d)(1)(vii) of this chapter in all or part of its service region.


[[Page 533]]



                              FINDING AIDS




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

  A list of CFR titles, subtitles, chapters, subchapters and parts and 
an alphabetical list of agencies publishing in the CFR are included in 
the CFR Index and Finding Aids volume to the Code of Federal Regulations 
which is published separately and revised annually.

  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  Table of OMB Control Numbers
  List of CFR Sections Affected

[[Page 535]]



                    Table of CFR Titles and Chapters




                     (Revised as of October 1, 2013)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
       III  Administrative Conference of the United States (Parts 
                300--399)
        IV  Miscellaneous Agencies (Parts 400--500)

                    Title 2--Grants and Agreements

            Subtitle A--Office of Management and Budget Guidance 
                for Grants and Agreements
         I  Office of Management and Budget Governmentwide 
                Guidance for Grants and Agreements (Parts 2--199)
        II  Office of Management and Budget Circulars and Guidance 
                (200--299)
            Subtitle B--Federal Agency Regulations for Grants and 
                Agreements
       III  Department of Health and Human Services (Parts 300-- 
                399)
        IV  Department of Agriculture (Parts 400--499)
        VI  Department of State (Parts 600--699)
       VII  Agency for International Development (Parts 700--799)
      VIII  Department of Veterans Affairs (Parts 800--899)
        IX  Department of Energy (Parts 900--999)
        XI  Department of Defense (Parts 1100--1199)
       XII  Department of Transportation (Parts 1200--1299)
      XIII  Department of Commerce (Parts 1300--1399)
       XIV  Department of the Interior (Parts 1400--1499)
        XV  Environmental Protection Agency (Parts 1500--1599)
     XVIII  National Aeronautics and Space Administration (Parts 
                1800--1899)
        XX  United States Nuclear Regulatory Commission (Parts 
                2000--2099)
      XXII  Corporation for National and Community Service (Parts 
                2200--2299)
     XXIII  Social Security Administration (Parts 2300--2399)
      XXIV  Housing and Urban Development (Parts 2400--2499)
       XXV  National Science Foundation (Parts 2500--2599)
      XXVI  National Archives and Records Administration (Parts 
                2600--2699)
     XXVII  Small Business Administration (Parts 2700--2799)
    XXVIII  Department of Justice (Parts 2800--2899)

[[Page 536]]

       XXX  Department of Homeland Security (Parts 3000--3099)
      XXXI  Institute of Museum and Library Services (Parts 3100--
                3199)
     XXXII  National Endowment for the Arts (Parts 3200--3299)
    XXXIII  National Endowment for the Humanities (Parts 3300--
                3399)
     XXXIV  Department of Education (Parts 3400--3499)
      XXXV  Export-Import Bank of the United States (Parts 3500--
                3599)
    XXXVII  Peace Corps (Parts 3700--3799)
     LVIII  Election Assistance Commission (Parts 5800--5899)

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  Government Accountability Office (Parts 1--199)
        II  Recovery Accountability and Transparency Board (Parts 
                200--299)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Parts 2100--2199)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
        XV  Office of Administration, Executive Office of the 
                President (Parts 2500--2599)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Parts 3200--
                3299)
     XXIII  Department of Energy (Parts 3300--3399)
      XXIV  Federal Energy Regulatory Commission (Parts 3400--
                3499)
       XXV  Department of the Interior (Parts 3500--3599)
      XXVI  Department of Defense (Parts 3600-- 3699)
    XXVIII  Department of Justice (Parts 3800--3899)
      XXIX  Federal Communications Commission (Parts 3900--3999)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)

[[Page 537]]

    XXXIII  Overseas Private Investment Corporation (Parts 4300--
                4399)
     XXXIV  Securities and Exchange Commission (Parts 4400--4499)
      XXXV  Office of Personnel Management (Parts 4500--4599)
    XXXVII  Federal Election Commission (Parts 4700--4799)
        XL  Interstate Commerce Commission (Parts 5000--5099)
       XLI  Commodity Futures Trading Commission (Parts 5100--
                5199)
      XLII  Department of Labor (Parts 5200--5299)
     XLIII  National Science Foundation (Parts 5300--5399)
       XLV  Department of Health and Human Services (Parts 5500--
                5599)
      XLVI  Postal Rate Commission (Parts 5600--5699)
     XLVII  Federal Trade Commission (Parts 5700--5799)
    XLVIII  Nuclear Regulatory Commission (Parts 5800--5899)
      XLIX  Federal Labor Relations Authority (Parts 5900--5999)
         L  Department of Transportation (Parts 6000--6099)
       LII  Export-Import Bank of the United States (Parts 6200--
                6299)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Parts 6400--6499)
        LV  National Endowment for the Arts (Parts 6500--6599)
       LVI  National Endowment for the Humanities (Parts 6600--
                6699)
      LVII  General Services Administration (Parts 6700--6799)
     LVIII  Board of Governors of the Federal Reserve System 
                (Parts 6800--6899)
       LIX  National Aeronautics and Space Administration (Parts 
                6900--6999)
        LX  United States Postal Service (Parts 7000--7099)
       LXI  National Labor Relations Board (Parts 7100--7199)
      LXII  Equal Employment Opportunity Commission (Parts 7200--
                7299)
     LXIII  Inter-American Foundation (Parts 7300--7399)
      LXIV  Merit Systems Protection Board (Parts 7400--7499)
       LXV  Department of Housing and Urban Development (Parts 
                7500--7599)
      LXVI  National Archives and Records Administration (Parts 
                7600--7699)
     LXVII  Institute of Museum and Library Services (Parts 7700--
                7799)
    LXVIII  Commission on Civil Rights (Parts 7800--7899)
      LXIX  Tennessee Valley Authority (Parts 7900--7999)
       LXX  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 8000--8099)
      LXXI  Consumer Product Safety Commission (Parts 8100--8199)
    LXXIII  Department of Agriculture (Parts 8300--8399)
     LXXIV  Federal Mine Safety and Health Review Commission 
                (Parts 8400--8499)
     LXXVI  Federal Retirement Thrift Investment Board (Parts 
                8600--8699)
    LXXVII  Office of Management and Budget (Parts 8700--8799)
      LXXX  Federal Housing Finance Agency (Parts 9000--9099)
    LXXXII  Special Inspector General for Iraq Reconstruction 
                (Parts 9200--9299)

[[Page 538]]

   LXXXIII  Special Inspector General for Afghanistan 
                Reconstruction (Parts 9300--9399)
    LXXXIV  Bureau of Consumer Financial Protection (Parts 9400--
                9499)
    LXXXVI  National Credit Union Administration (9600--9699)
     XCVII  Department of Homeland Security Human Resources 
                Management System (Department of Homeland 
                Security--Office of Personnel Management) (Parts 
                9700--9799)
     XCVII  Council of the Inspectors General on Integrity and 
                Efficiency (Parts 9800--9899)

                      Title 6--Domestic Security

         I  Department of Homeland Security, Office of the 
                Secretary (Parts 1--99)
         X  Privacy and Civil Liberties Oversight Board (Parts 
                1000--1099)

                         Title 7--Agriculture

            Subtitle A--Office of the Secretary of Agriculture 
                (Parts 0--26)
            Subtitle B--Regulations of the Department of 
                Agriculture
         I  Agricultural Marketing Service (Standards, 
                Inspections, Marketing Practices), Department of 
                Agriculture (Parts 27--209)
        II  Food and Nutrition Service, Department of Agriculture 
                (Parts 210--299)
       III  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 300--399)
        IV  Federal Crop Insurance Corporation, Department of 
                Agriculture (Parts 400--499)
         V  Agricultural Research Service, Department of 
                Agriculture (Parts 500--599)
        VI  Natural Resources Conservation Service, Department of 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)
      VIII  Grain Inspection, Packers and Stockyards 
                Administration (Federal Grain Inspection Service), 
                Department of Agriculture (Parts 800--899)
        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Miscellaneous Commodities), Department 
                of Agriculture (Parts 1200--1299)
       XIV  Commodity Credit Corporation, Department of 
                Agriculture (Parts 1400--1499)
        XV  Foreign Agricultural Service, Department of 
                Agriculture (Parts 1500--1599)

[[Page 539]]

       XVI  Rural Telephone Bank, Department of Agriculture (Parts 
                1600--1699)
      XVII  Rural Utilities Service, Department of Agriculture 
                (Parts 1700--1799)
     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department of Agriculture (Parts 1800--
                2099)
        XX  Local Television Loan Guarantee Board (Parts 2200--
                2299)
       XXV  Office of Advocacy and Outreach, Department of 
                Agriculture (Parts 2500--2599)
      XXVI  Office of Inspector General, Department of Agriculture 
                (Parts 2600--2699)
     XXVII  Office of Information Resources Management, Department 
                of Agriculture (Parts 2700--2799)
    XXVIII  Office of Operations, Department of Agriculture (Parts 
                2800--2899)
      XXIX  Office of Energy Policy and New Uses, Department of 
                Agriculture (Parts 2900--2999)
       XXX  Office of the Chief Financial Officer, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  Office of Procurement and Property Management, 
                Department of Agriculture (Parts 3200--3299)
    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  National Institute of Food and Agriculture (Parts 
                3400--3499)
      XXXV  Rural Housing Service, Department of Agriculture 
                (Parts 3500--3599)
     XXXVI  National Agricultural Statistics Service, Department 
                of Agriculture (Parts 3600--3699)
    XXXVII  Economic Research Service, Department of Agriculture 
                (Parts 3700--3799)
   XXXVIII  World Agricultural Outlook Board, Department of 
                Agriculture (Parts 3800--3899)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

                    Title 8--Aliens and Nationality

         I  Department of Homeland Security (Immigration and 
                Naturalization) (Parts 1--499)
         V  Executive Office for Immigration Review, Department of 
                Justice (Parts 1000--1399)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)

[[Page 540]]

        II  Grain Inspection, Packers and Stockyards 
                Administration (Packers and Stockyards Programs), 
                Department of Agriculture (Parts 200--299)
       III  Food Safety and Inspection Service, Department of 
                Agriculture (Parts 300--599)

                           Title 10--Energy

         I  Nuclear Regulatory Commission (Parts 0--199)
        II  Department of Energy (Parts 200--699)
       III  Department of Energy (Parts 700--999)
         X  Department of Energy (General Provisions) (Parts 
                1000--1099)
      XIII  Nuclear Waste Technical Review Board (Parts 1300--
                1399)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)
     XVIII  Northeast Interstate Low-Level Radioactive Waste 
                Commission (Parts 1800--1899)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)
        II  Election Assistance Commission (Parts 9400--9499)

                      Title 12--Banks and Banking

         I  Comptroller of the Currency, Department of the 
                Treasury (Parts 1--199)
        II  Federal Reserve System (Parts 200--299)
       III  Federal Deposit Insurance Corporation (Parts 300--399)
        IV  Export-Import Bank of the United States (Parts 400--
                499)
         V  Office of Thrift Supervision, Department of the 
                Treasury (Parts 500--599)
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)
      VIII  Federal Financing Bank (Parts 800--899)
        IX  Federal Housing Finance Board (Parts 900--999)
         X  Bureau of Consumer Financial Protection (Parts 1000--
                1099)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XII  Federal Housing Finance Agency (Parts 1200--1299)
      XIII  Financial Stability Oversight Council (Parts 1300--
                1399)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Department of the Treasury (Parts 1500--1599)
       XVI  Office of Financial Research (Parts 1600--1699)
      XVII  Office of Federal Housing Enterprise Oversight, 
                Department of Housing and Urban Development (Parts 
                1700--1799)
     XVIII  Community Development Financial Institutions Fund, 
                Department of the Treasury (Parts 1800--1899)

[[Page 541]]

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)
        IV  Emergency Steel Guarantee Loan Board (Parts 400--499)
         V  Emergency Oil and Gas Guaranteed Loan Board (Parts 
                500--599)

                    Title 14--Aeronautics and Space

         I  Federal Aviation Administration, Department of 
                Transportation (Parts 1--199)
        II  Office of the Secretary, Department of Transportation 
                (Aviation Proceedings) (Parts 200--399)
       III  Commercial Space Transportation, Federal Aviation 
                Administration, Department of Transportation 
                (Parts 400--1199)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)
        VI  Air Transportation System Stabilization (Parts 1300--
                1399)

                 Title 15--Commerce and Foreign Trade

            Subtitle A--Office of the Secretary of Commerce (Parts 
                0--29)
            Subtitle B--Regulations Relating to Commerce and 
                Foreign Trade
         I  Bureau of the Census, Department of Commerce (Parts 
                30--199)
        II  National Institute of Standards and Technology, 
                Department of Commerce (Parts 200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  Foreign-Trade Zones Board, Department of Commerce 
                (Parts 400--499)
       VII  Bureau of Industry and Security, Department of 
                Commerce (Parts 700--799)
      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  Technology Administration, Department of Commerce 
                (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
            Subtitle C--Regulations Relating to Foreign Trade 
                Agreements
        XX  Office of the United States Trade Representative 
                (Parts 2000--2099)
            Subtitle D--Regulations Relating to Telecommunications 
                and Information
     XXIII  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                2300--2399)

[[Page 542]]

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

             Title 17--Commodity and Securities Exchanges

         I  Commodity Futures Trading Commission (Parts 1--199)
        II  Securities and Exchange Commission (Parts 200--399)
        IV  Department of the Treasury (Parts 400--499)

          Title 18--Conservation of Power and Water Resources

         I  Federal Energy Regulatory Commission, Department of 
                Energy (Parts 1--399)
       III  Delaware River Basin Commission (Parts 400--499)
        VI  Water Resources Council (Parts 700--799)
      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  U.S. Customs and Border Protection, Department of 
                Homeland Security; Department of the Treasury 
                (Parts 0--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  U.S. Immigration and Customs Enforcement, Department 
                of Homeland Security (Parts 400--599)

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)
        II  Railroad Retirement Board (Parts 200--399)
       III  Social Security Administration (Parts 400--499)
        IV  Employees' Compensation Appeals Board, Department of 
                Labor (Parts 500--599)
         V  Employment and Training Administration, Department of 
                Labor (Parts 600--699)
        VI  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 700--799)
       VII  Benefits Review Board, Department of Labor (Parts 
                800--899)
      VIII  Joint Board for the Enrollment of Actuaries (Parts 
                900--999)
        IX  Office of the Assistant Secretary for Veterans' 
                Employment and Training Service, Department of 
                Labor (Parts 1000--1099)

[[Page 543]]

                       Title 21--Food and Drugs

         I  Food and Drug Administration, Department of Health and 
                Human Services (Parts 1--1299)
        II  Drug Enforcement Administration, Department of Justice 
                (Parts 1300--1399)
       III  Office of National Drug Control Policy (Parts 1400--
                1499)

                      Title 22--Foreign Relations

         I  Department of State (Parts 1--199)
        II  Agency for International Development (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  Broadcasting Board of Governors (Parts 500--599)
       VII  Overseas Private Investment Corporation (Parts 700--
                799)
        IX  Foreign Service Grievance Board (Parts 900--999)
         X  Inter-American Foundation (Parts 1000--1099)
        XI  International Boundary and Water Commission, United 
                States and Mexico, United States Section (Parts 
                1100--1199)
       XII  United States International Development Cooperation 
                Agency (Parts 1200--1299)
      XIII  Millennium Challenge Corporation (Parts 1300--1399)
       XIV  Foreign Service Labor Relations Board; Federal Labor 
                Relations Authority; General Counsel of the 
                Federal Labor Relations Authority; and the Foreign 
                Service Impasse Disputes Panel (Parts 1400--1499)
        XV  African Development Foundation (Parts 1500--1599)
       XVI  Japan-United States Friendship Commission (Parts 
                1600--1699)
      XVII  United States Institute of Peace (Parts 1700--1799)

                          Title 23--Highways

         I  Federal Highway Administration, Department of 
                Transportation (Parts 1--999)
        II  National Highway Traffic Safety Administration and 
                Federal Highway Administration, Department of 
                Transportation (Parts 1200--1299)
       III  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 1300--1399)

                Title 24--Housing and Urban Development

            Subtitle A--Office of the Secretary, Department of 
                Housing and Urban Development (Parts 0--99)
            Subtitle B--Regulations Relating to Housing and Urban 
                Development
         I  Office of Assistant Secretary for Equal Opportunity, 
                Department of Housing and Urban Development (Parts 
                100--199)

[[Page 544]]

        II  Office of Assistant Secretary for Housing-Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 200--299)
       III  Government National Mortgage Association, Department 
                of Housing and Urban Development (Parts 300--399)
        IV  Office of Housing and Office of Multifamily Housing 
                Assistance Restructuring, Department of Housing 
                and Urban Development (Parts 400--499)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)
        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (Housing Assistance Programs and 
                Public and Indian Housing Programs) (Parts 700--
                799)
      VIII  Office of the Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Section 8 Housing Assistance 
                Programs, Section 202 Direct Loan Program, Section 
                202 Supportive Housing for the Elderly Program and 
                Section 811 Supportive Housing for Persons With 
                Disabilities Program) (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--1699)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799)
       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XV  Emergency Mortgage Insurance and Loan Programs, 
                Department of Housing and Urban Development (Parts 
                2700--2799)
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)
      XXIV  Board of Directors of the HOPE for Homeowners Program 
                (Parts 4000--4099)
       XXV  Neighborhood Reinvestment Corporation (Parts 4100--
                4199)

                           Title 25--Indians

         I  Bureau of Indian Affairs, Department of the Interior 
                (Parts 1--299)
        II  Indian Arts and Crafts Board, Department of the 
                Interior (Parts 300--399)
       III  National Indian Gaming Commission, Department of the 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--799)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900)

[[Page 545]]

        VI  Office of the Assistant Secretary-Indian Affairs, 
                Department of the Interior (Parts 1000--1199)
       VII  Office of the Special Trustee for American Indians, 
                Department of the Interior (Parts 1200--1299)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--End)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Alcohol and Tobacco Tax and Trade Bureau, Department 
                of the Treasury (Parts 1--399)
        II  Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
                Department of Justice (Parts 400--699)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--299)
       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)
         V  Bureau of Prisons, Department of Justice (Parts 500--
                599)
        VI  Offices of Independent Counsel, Department of Justice 
                (Parts 600--699)
       VII  Office of Independent Counsel (Parts 700--799)
      VIII  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 800--899)
        IX  National Crime Prevention and Privacy Compact Council 
                (Parts 900--999)
        XI  Department of Justice and Department of State (Parts 
                1100--1199)

                            Title 29--Labor

            Subtitle A--Office of the Secretary of Labor (Parts 
                0--99)
            Subtitle B--Regulations Relating to Labor
         I  National Labor Relations Board (Parts 100--199)
        II  Office of Labor-Management Standards, Department of 
                Labor (Parts 200--299)
       III  National Railroad Adjustment Board (Parts 300--399)
        IV  Office of Labor-Management Standards, Department of 
                Labor (Parts 400--499)
         V  Wage and Hour Division, Department of Labor (Parts 
                500--899)
        IX  Construction Industry Collective Bargaining Commission 
                (Parts 900--999)
         X  National Mediation Board (Parts 1200--1299)
       XII  Federal Mediation and Conciliation Service (Parts 
                1400--1499)
       XIV  Equal Employment Opportunity Commission (Parts 1600--
                1699)

[[Page 546]]

      XVII  Occupational Safety and Health Administration, 
                Department of Labor (Parts 1900--1999)
        XX  Occupational Safety and Health Review Commission 
                (Parts 2200--2499)
       XXV  Employee Benefits Security Administration, Department 
                of Labor (Parts 2500--2599)
     XXVII  Federal Mine Safety and Health Review Commission 
                (Parts 2700--2799)
        XL  Pension Benefit Guaranty Corporation (Parts 4000--
                4999)

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Bureau of Safety and Environmental Enforcement, 
                Department of the Interior (Parts 200--299)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
         V  Bureau of Ocean Energy Management, Department of the 
                Interior (Parts 500--599)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)
       XII  Office of Natural Resources Revenue, Department of the 
                Interior (Parts 1200--1299)

                 Title 31--Money and Finance: Treasury

            Subtitle A--Office of the Secretary of the Treasury 
                (Parts 0--50)
            Subtitle B--Regulations Relating to Money and Finance
         I  Monetary Offices, Department of the Treasury (Parts 
                51--199)
        II  Fiscal Service, Department of the Treasury (Parts 
                200--399)
        IV  Secret Service, Department of the Treasury (Parts 
                400--499)
         V  Office of Foreign Assets Control, Department of the 
                Treasury (Parts 500--599)
        VI  Bureau of Engraving and Printing, Department of the 
                Treasury (Parts 600--699)
       VII  Federal Law Enforcement Training Center, Department of 
                the Treasury (Parts 700--799)
      VIII  Office of International Investment, Department of the 
                Treasury (Parts 800--899)
        IX  Federal Claims Collection Standards (Department of the 
                Treasury--Department of Justice) (Parts 900--999)
         X  Financial Crimes Enforcement Network, Department of 
                the Treasury (Parts 1000--1099)

                      Title 32--National Defense

            Subtitle A--Department of Defense
         I  Office of the Secretary of Defense (Parts 1--399)

[[Page 547]]

         V  Department of the Army (Parts 400--699)
        VI  Department of the Navy (Parts 700--799)
       VII  Department of the Air Force (Parts 800--1099)
            Subtitle B--Other Regulations Relating to National 
                Defense
       XII  Defense Logistics Agency (Parts 1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
      XVII  Office of the Director of National Intelligence (Parts 
                1700--1799)
     XVIII  National Counterintelligence Center (Parts 1800--1899)
       XIX  Central Intelligence Agency (Parts 1900--1999)
        XX  Information Security Oversight Office, National 
                Archives and Records Administration (Parts 2000--
                2099)
       XXI  National Security Council (Parts 2100--2199)
      XXIV  Office of Science and Technology Policy (Parts 2400--
                2499)
     XXVII  Office for Micronesian Status Negotiations (Parts 
                2700--2799)
    XXVIII  Office of the Vice President of the United States 
                (Parts 2800--2899)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Homeland Security (Parts 
                1--199)
        II  Corps of Engineers, Department of the Army (Parts 
                200--399)
        IV  Saint Lawrence Seaway Development Corporation, 
                Department of Transportation (Parts 400--499)

                          Title 34--Education

            Subtitle A--Office of the Secretary, Department of 
                Education (Parts 1--99)
            Subtitle B--Regulations of the Offices of the 
                Department of Education
         I  Office for Civil Rights, Department of Education 
                (Parts 100--199)
        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)
       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Vocational and Adult Education, Department 
                of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599)
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvement, 
                Department of Education (Parts 700--799) 
                [Reserved]
            Subtitle C--Regulations Relating to Education
        XI  National Institute for Literacy (Parts 1100--1199)
       XII  National Council on Disability (Parts 1200--1299)

[[Page 548]]

                          Title 35 [Reserved]

             Title 36--Parks, Forests, and Public Property

         I  National Park Service, Department of the Interior 
                (Parts 1--199)
        II  Forest Service, Department of Agriculture (Parts 200--
                299)
       III  Corps of Engineers, Department of the Army (Parts 
                300--399)
        IV  American Battle Monuments Commission (Parts 400--499)
         V  Smithsonian Institution (Parts 500--599)
        VI  [Reserved]
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
         X  Presidio Trust (Parts 1000--1099)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
        XV  Oklahoma City National Memorial Trust (Parts 1500--
                1599)
       XVI  Morris K. Udall Scholarship and Excellence in National 
                Environmental Policy Foundation (Parts 1600--1699)

             Title 37--Patents, Trademarks, and Copyrights

         I  United States Patent and Trademark Office, Department 
                of Commerce (Parts 1--199)
        II  U.S. Copyright Office, Library of Congress (Parts 
                200--299)
       III  Copyright Royalty Board, Library of Congress (Parts 
                300--399)
        IV  Assistant Secretary for Technology Policy, Department 
                of Commerce (Parts 400--599)

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--199)
        II  Armed Forces Retirement Home (Parts 200--299)

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Regulatory Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--1099)
        IV  Environmental Protection Agency and Department of 
                Justice (Parts 1400--1499)
         V  Council on Environmental Quality (Parts 1500--1599)
        VI  Chemical Safety and Hazard Investigation Board (Parts 
                1600--1699)

[[Page 549]]

       VII  Environmental Protection Agency and Department of 
                Defense; Uniform National Discharge Standards for 
                Vessels of the Armed Forces (Parts 1700--1799)

          Title 41--Public Contracts and Property Management

            Subtitle A--Federal Procurement Regulations System 
                [Note]
            Subtitle B--Other Provisions Relating to Public 
                Contracts
        50  Public Contracts, Department of Labor (Parts 50-1--50-
                999)
        51  Committee for Purchase From People Who Are Blind or 
                Severely Disabled (Parts 51-1--51-99)
        60  Office of Federal Contract Compliance Programs, Equal 
                Employment Opportunity, Department of Labor (Parts 
                60-1--60-999)
        61  Office of the Assistant Secretary for Veterans' 
                Employment and Training Service, Department of 
                Labor (Parts 61-1--61-999)
   62--100  [Reserved]
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       102  Federal Management Regulation (Parts 102-1--102-299)
  103--104  [Reserved]
       105  General Services Administration (Parts 105-1--105-999)
       109  Department of Energy Property Management Regulations 
                (Parts 109-1--109-99)
       114  Department of the Interior (Parts 114-1--114-99)
       115  Environmental Protection Agency (Parts 115-1--115-99)
       128  Department of Justice (Parts 128-1--128-99)
  129--200  [Reserved]
            Subtitle D--Other Provisions Relating to Property 
                Management [Reserved]
            Subtitle E--Federal Information Resources Management 
                Regulations System [Reserved]
            Subtitle F--Federal Travel Regulation System
       300  General (Parts 300-1--300-99)
       301  Temporary Duty (TDY) Travel Allowances (Parts 301-1--
                301-99)
       302  Relocation Allowances (Parts 302-1--302-99)
       303  Payment of Expenses Connected with the Death of 
                Certain Employees (Part 303-1--303-99)
       304  Payment of Travel Expenses from a Non-Federal Source 
                (Parts 304-1--304-99)

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
        IV  Centers for Medicare & Medicaid Services, Department 
                of Health and Human Services (Parts 400--599)

[[Page 550]]

         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1999)

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 400--999)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10099)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency, Department of 
                Homeland Security (Parts 0--399)
        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

                       Title 45--Public Welfare

            Subtitle A--Department of Health and Human Services 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Welfare
        II  Office of Family Assistance (Assistance Programs), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)
       III  Office of Child Support Enforcement (Child Support 
                Enforcement Program), Administration for Children 
                and Families, Department of Health and Human 
                Services (Parts 300--399)
        IV  Office of Refugee Resettlement, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 400--499)
         V  Foreign Claims Settlement Commission of the United 
                States, Department of Justice (Parts 500--599)
        VI  National Science Foundation (Parts 600--699)
       VII  Commission on Civil Rights (Parts 700--799)
      VIII  Office of Personnel Management (Parts 800--899)
         X  Office of Community Services, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 1000--1099)
        XI  National Foundation on the Arts and the Humanities 
                (Parts 1100--1199)
       XII  Corporation for National and Community Service (Parts 
                1200--1299)
      XIII  Office of Human Development Services, Department of 
                Health and Human Services (Parts 1300--1399)

[[Page 551]]

       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission on Fine Arts (Parts 2100--2199)
     XXIII  Arctic Research Commission (Part 2301)
      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

                          Title 46--Shipping

         I  Coast Guard, Department of Homeland Security (Parts 
                1--199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
       III  Coast Guard (Great Lakes Pilotage), Department of 
                Homeland Security (Parts 400--499)
        IV  Federal Maritime Commission (Parts 500--599)

                      Title 47--Telecommunication

         I  Federal Communications Commission (Parts 0--199)
        II  Office of Science and Technology Policy and National 
                Security Council (Parts 200--299)
       III  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                300--399)
        IV  National Telecommunications and Information 
                Administration, Department of Commerce, and 
                National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 400--499)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Defense Acquisition Regulations System, Department of 
                Defense (Parts 200--299)
         3  Health and Human Services (Parts 300--399)
         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)
         7  Agency for International Development (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)
        10  Department of the Treasury (Parts 1000--1099)
        12  Department of Transportation (Parts 1200--1299)
        13  Department of Commerce (Parts 1300--1399)
        14  Department of the Interior (Parts 1400--1499)

[[Page 552]]

        15  Environmental Protection Agency (Parts 1500--1599)
        16  Office of Personnel Management, Federal Employees 
                Health Benefits Acquisition Regulation (Parts 
                1600--1699)
        17  Office of Personnel Management (Parts 1700--1799)
        18  National Aeronautics and Space Administration (Parts 
                1800--1899)
        19  Broadcasting Board of Governors (Parts 1900--1999)
        20  Nuclear Regulatory Commission (Parts 2000--2099)
        21  Office of Personnel Management, Federal Employees 
                Group Life Insurance Federal Acquisition 
                Regulation (Parts 2100--2199)
        23  Social Security Administration (Parts 2300--2399)
        24  Department of Housing and Urban Development (Parts 
                2400--2499)
        25  National Science Foundation (Parts 2500--2599)
        28  Department of Justice (Parts 2800--2899)
        29  Department of Labor (Parts 2900--2999)
        30  Department of Homeland Security, Homeland Security 
                Acquisition Regulation (HSAR) (Parts 3000--3099)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)
        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199)
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)
        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement (Parts 5300--5399)[Reserved]
        54  Defense Logistics Agency, Department of Defense (Parts 
                5400--5499)
        57  African Development Foundation (Parts 5700--5799)
        61  Civilian Board of Contract Appeals, General Services 
                Administration (Parts 6100--6199)
        63  Department of Transportation Board of Contract Appeals 
                (Parts 6300--6399)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement Policy, Office of Management and 
                Budget (Parts 9900--9999)

                       Title 49--Transportation

            Subtitle A--Office of the Secretary of Transportation 
                (Parts 1--99)
            Subtitle B--Other Regulations Relating to 
                Transportation
         I  Pipeline and Hazardous Materials Safety 
                Administration, Department of Transportation 
                (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)
       III  Federal Motor Carrier Safety Administration, 
                Department of Transportation (Parts 300--399)
        IV  Coast Guard, Department of Homeland Security (Parts 
                400--499)

[[Page 553]]

         V  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 500--599)
        VI  Federal Transit Administration, Department of 
                Transportation (Parts 600--699)
       VII  National Railroad Passenger Corporation (AMTRAK) 
                (Parts 700--799)
      VIII  National Transportation Safety Board (Parts 800--999)
         X  Surface Transportation Board, Department of 
                Transportation (Parts 1000--1399)
        XI  Research and Innovative Technology Administration, 
                Department of Transportation (Parts 1400--
                1499)[Reserved]
       XII  Transportation Security Administration, Department of 
                Homeland Security (Parts 1500--1699)

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 200--299)
       III  International Fishing and Related Activities (Parts 
                300--399)
        IV  Joint Regulations (United States Fish and Wildlife 
                Service, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)
         V  Marine Mammal Commission (Parts 500--599)
        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

                      CFR Index and Finding Aids

            Subject/Agency Index
            List of Agency Prepared Indexes
            Parallel Tables of Statutory Authorities and Rules
            List of CFR Titles, Chapters, Subchapters, and Parts
            Alphabetical List of Agencies Appearing in the CFR

[[Page 555]]





           Alphabetical List of Agencies Appearing in the CFR




                     (Revised as of October 1, 2013)

                                                  CFR Title, Subtitle or 
                     Agency                               Chapter

Administrative Committee of the Federal Register  1, I
Administrative Conference of the United States    1, III
Advisory Council on Historic Preservation         36, VIII
Advocacy and Outreach, Office of                  7, XXV
Afghanistan Reconstruction, Special Inspector     22, LXXXIII
     General for
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development              2, VII; 22, II
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department                            2, IV; 5, LXXIII
  Advocacy and Outreach, Office of                7, XXV
  Agricultural Marketing Service                  7, I, IX, X, XI
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Chief Financial Officer, Office of              7, XXX
  Commodity Credit Corporation                    7, XIV
  Economic Research Service                       7, XXXVII
  Energy Policy and New Uses, Office of           2, IX; 7, XXIX
  Environmental Quality, Office of                7, XXXI
  Farm Service Agency                             7, VII, XVIII
  Federal Acquisition Regulation                  48, 4
  Federal Crop Insurance Corporation              7, IV
  Food and Nutrition Service                      7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Grain Inspection, Packers and Stockyards        7, VIII; 9, II
       Administration
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  National Institute of Food and Agriculture      7, XXXIV
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Procurement and Property Management, Office of  7, XXXII
  Rural Business-Cooperative Service              7, XVIII, XLII, L
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV, L
  Rural Telephone Bank                            7, XVI
  Rural Utilities Service                         7, XVII, XVIII, XLII, L
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force Department                              32, VII
  Federal Acquisition Regulation Supplement       48, 53
Air Transportation Stabilization Board            14, VI
Alcohol and Tobacco Tax and Trade Bureau          27, I
Alcohol, Tobacco, Firearms, and Explosives,       27, II
     Bureau of
AMTRAK                                            49, VII
American Battle Monuments Commission              36, IV
American Indians, Office of the Special Trustee   25, VII

[[Page 556]]

Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX
Architectural and Transportation Barriers         36, XI
     Compliance Board
Arctic Research Commission                        45, XXIII
Armed Forces Retirement Home                      5, XI
Army Department                                   32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase from People Who Are
Broadcasting Board of Governors                   22, V
  Federal Acquisition Regulation                  48, 19
Bureau of Ocean Energy Management, Regulation,    30, II
     and Enforcement
Census Bureau                                     15, I
Centers for Medicare & Medicaid Services          42, IV
Central Intelligence Agency                       32, XIX
Chemical Safety and Hazardous Investigation       40, VI
     Board
Chief Financial Officer, Office of                7, XXX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X
Civil Rights, Commission on                       5, LXVIII; 45, VII
Civil Rights, Office for                          34, I
Council of the Inspectors General on Integrity    5, XCVIII
     and Efficiency
Court Services and Offender Supervision Agency    5, LXX
     for the District of Columbia
Coast Guard                                       33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage)                46, III
Commerce Department                               2, XIII; 44, IV; 50, VI
  Census Bureau                                   15, I
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 13
  Foreign-Trade Zones Board                       15, IV
  Industry and Security, Bureau of                15, VII
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II
  National Marine Fisheries Service               50, II, IV
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Telecommunications and Information     15, XXIII; 47, III, IV
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office, United States      37, I
  Productivity, Technology and Innovation,        37, IV
       Assistant Secretary for
  Secretary of Commerce, Office of                15, Subtitle A
  Technology Administration                       15, XI
  Technology Policy, Assistant Secretary for      37, IV
Commercial Space Transportation                   14, III
Commodity Credit Corporation                      7, XIV
Commodity Futures Trading Commission              5, XLI; 17, I
Community Planning and Development, Office of     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Financial Protection Bureau              5, LXXXIV; 12, X
Consumer Product Safety Commission                5, LXXI; 16, II
Copyright Royalty Board                           37, III
Corporation for National and Community Service    2, XXII; 45, XII, XXV
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Court Services and Offender Supervision Agency    5, LXX; 28, VIII
     for the District of Columbia
Customs and Border Protection                     19, I

[[Page 557]]

Defense Contract Audit Agency                     32, I
Defense Department                                2, XI; 5, XXVI; 32, 
                                                  Subtitle A; 40, VII
  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII
  Army Department                                 32, V; 33, II; 36, III, 
                                                  48, 51
  Defense Acquisition Regulations System          48, 2
  Defense Intelligence Agency                     32, I
  Defense Logistics Agency                        32, I, XII; 48, 54
  Engineers, Corps of                             33, II; 36, III
  National Imagery and Mapping Agency             32, I
  Navy Department                                 32, VI; 48, 52
  Secretary of Defense, Office of                 2, XI; 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
District of Columbia, Court Services and          5, LXX; 28, VIII
     Offender Supervision Agency for the
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Analysis, Bureau of                      15, VIII
Economic Development Administration               13, III
Economic Research Service                         7, XXXVII
Education, Department of                          2, XXXIV; 5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  Elementary and Secondary Education, Office of   34, II
  Federal Acquisition Regulation                  48, 34
  Postsecondary Education, Office of              34, VI
  Secretary of Education, Office of               34, Subtitle A
  Special Education and Rehabilitative Services,  34, III
       Office of
  Vocational and Adult Education, Office of       34, IV
Educational Research and Improvement, Office of   34, VII
Election Assistance Commission                    2, LVIII; 11, II
Elementary and Secondary Education, Office of     34, II
Emergency Oil and Gas Guaranteed Loan Board       13, V
Emergency Steel Guarantee Loan Board              13, IV
Employee Benefits Security Administration         29, XXV
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             2, IX; 5, XXIII; 10, II, 
                                                  III, X
  Federal Acquisition Regulation                  48, 9
  Federal Energy Regulatory Commission            5, XXIV; 18, I
  Property Management Regulations                 41, 109
Energy, Office of                                 7, XXIX
Engineers, Corps of                               33, II; 36, III
Engraving and Printing, Bureau of                 31, VI
Environmental Protection Agency                   2, XV; 5, LIV; 40, I, IV, 
                                                  VII
  Federal Acquisition Regulation                  48, 15
  Property Management Regulations                 41, 115
Environmental Quality, Office of                  7, XXXI
Equal Employment Opportunity Commission           5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary  24, I
     for
Executive Office of the President                 3, I
  Administration, Office of                       5, XV
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                2, Subtitle A; 5, III, 
                                                  LXXVII; 14, VI; 48, 99

[[Page 558]]

  National Drug Control Policy, Office of         21, III
  National Security Council                       32, XXI; 47, 2
  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
       States
Export-Import Bank of the United States           2, XXXV; 5, LII; 12, IV
Family Assistance, Office of                      45, II
Farm Credit Administration                        5, XXXI; 12, VI
Farm Credit System Insurance Corporation          5, XXX; 12, XIV
Farm Service Agency                               7, VII, XVIII
Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               31, IX
Federal Communications Commission                 5, XXIX; 47, I
Federal Contract Compliance Programs, Office of   41, 60
Federal Crop Insurance Corporation                7, IV
Federal Deposit Insurance Corporation             5, XXII; 12, III
Federal Election Commission                       5, XXXVII; 11, I
Federal Emergency Management Agency               44, I
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
Federal Financing Bank                            12, VIII
Federal Highway Administration                    23, I, II
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Agency                    5, LXXX; 12, XII
Federal Housing Finance Board                     12, IX
Federal Labor Relations Authority                 5, XIV, XLIX; 22, XIV
Federal Law Enforcement Training Center           31, VII
Federal Management Regulation                     41, 102
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Motor Carrier Safety Administration       49, III
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
  Board of Governors                              5, LVIII
Federal Retirement Thrift Investment Board        5, VI, LXXVI
Federal Service Impasses Panel                    5, XIV
Federal Trade Commission                          5, XLVII; 16, I
Federal Transit Administration                    49, VI
Federal Travel Regulation System                  41, Subtitle F
Financial Crimes Enforcement Network              31, X
Financial Research Office                         12, XVI
Financial Stability Oversight Council             12, XIII
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Food and Drug Administration                      21, I
Food and Nutrition Service                        7, II
Food Safety and Inspection Service                9, III
Foreign Agricultural Service                      7, XV
Foreign Assets Control, Office of                 31, V
Foreign Claims Settlement Commission of the       45, V
     United States
Foreign Service Grievance Board                   22, IX
Foreign Service Impasse Disputes Panel            22, XIV
Foreign Service Labor Relations Board             22, XIV
Foreign-Trade Zones Board                         15, IV

[[Page 559]]

Forest Service                                    36, II
General Services Administration                   5, LVII; 41, 105
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5
  Federal Management Regulation                   41, 102
  Federal Property Management Regulations         41, 101
  Federal Travel Regulation System                41, Subtitle F
  General                                         41, 300
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
       of Certain Employees
  Relocation Allowances                           41, 302
  Temporary Duty (TDY) Travel Allowances          41, 301
Geological Survey                                 30, IV
Government Accountability Office                  4, I
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          2, III; 5, XLV; 45, 
                                                  Subtitle A,
  Centers for Medicare & Medicaid Services        42, IV
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Human Development Services, Office of           45, XIII
  Indian Health Service                           25, V
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Homeland Security, Department of                  2, XXX; 6, I; 8, I
  Coast Guard                                     33, I; 46, I; 49, IV
  Coast Guard (Great Lakes Pilotage)              46, III
  Customs and Border Protection                   19, I
  Federal Emergency Management Agency             44, I
  Human Resources Management and Labor Relations  5, XCVII
       Systems
  Immigration and Customs Enforcement Bureau      19, IV
  Transportation Security Administration          49, XII
HOPE for Homeowners Program, Board of Directors   24, XXIV
     of
Housing and Urban Development, Department of      2, XXIV; 5, LXV; 24, 
                                                  Subtitle B
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Housing, Office of, and Multifamily Housing     24, IV
       Assistance Restructuring, Office of
  Inspector General, Office of                    24, XII
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Housing, Office of, and Multifamily Housing       24, IV
     Assistance Restructuring, Office of
Human Development Services, Office of             45, XIII
Immigration and Customs Enforcement Bureau        19, IV
Immigration Review, Executive Office for          8, V
Independent Counsel, Office of                    28, VII
Indian Affairs, Bureau of                         25, I, V

[[Page 560]]

Indian Affairs, Office of the Assistant           25, VI
     Secretary
Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V
Industry and Security, Bureau of                  15, VII
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
     Archives and Records Administration
Inspector General
  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII, XV
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Interior Department                               2, XIV
  American Indians, Office of the Special         25, VII
       Trustee
  Bureau of Ocean Energy Management, Regulation,  30, II
       and Enforcement
  Endangered Species Committee                    50, IV
  Federal Acquisition Regulation                  48, 14
  Federal Property Management Regulations System  41, 114
  Fish and Wildlife Service, United States        50, I, IV
  Geological Survey                               30, IV
  Indian Affairs, Bureau of                       25, I, V
  Indian Affairs, Office of the Assistant         25, VI
       Secretary
  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Natural Resource Revenue, Office of             30, XII
  Ocean Energy Management, Bureau of              30, V
  Reclamation, Bureau of                          43, I
  Secretary of the Interior, Office of            2, XIV; 43, Subtitle A
  Surface Mining Reclamation and Enforcement,     30, VII
       Office of
Internal Revenue Service                          26, I
International Boundary and Water Commission,      22, XI
     United States and Mexico, United States 
     Section
International Development, United States Agency   22, II
     for
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
Investment Security, Office of                    31, VIII
Iraq Reconstruction, Special Inspector General    5, LXXXVII
     for
James Madison Memorial Fellowship Foundation      45, XXIV
Japan-United States Friendship Commission         22, XVI
Joint Board for the Enrollment of Actuaries       20, VIII
Justice Department                                2, XXVIII; 5, XXVIII; 28, 
                                                  I, XI; 40, IV
  Alcohol, Tobacco, Firearms, and Explosives,     27, II
       Bureau of
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             31, IX
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration Review, Executive Office for        8, V
  Offices of Independent Counsel                  28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor Department                                  5, XLII
  Employee Benefits Security Administration       29, XXV
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V

[[Page 561]]

  Employment Standards Administration             20, VI
  Federal Acquisition Regulation                  48, 29
  Federal Contract Compliance Programs, Office    41, 60
       of
  Federal Procurement Regulations System          41, 50
  Labor-Management Standards, Office of           29, II, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Office of Workers' Compensation Programs        20, VII
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training Service,      41, 61; 20, IX
       Office of the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I
Labor-Management Standards, Office of             29, II, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Library of Congress                               36, VII
  Copyright Royalty Board                         37, III
  U.S. Copyright Office                           37, II
Local Television Loan Guarantee Board             7, XX
Management and Budget, Office of                  5, III, LXXVII; 14, VI; 
                                                  48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II, LXIV
Micronesian Status Negotiations, Office for       32, XXVII
Millennium Challenge Corporation                  22, XIII
Mine Safety and Health Administration             30, I
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
Morris K. Udall Scholarship and Excellence in     36, XVI
     National Environmental Policy Foundation
Museum and Library Services, Institute of         2, XXXI
National Aeronautics and Space Administration     2, XVIII; 5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National and Community Service, Corporation for   2, XXII; 45, XII, XXV
National Archives and Records Administration      2, XXVI; 5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Capital Planning Commission              1, IV
National Commission for Employment Policy         1, IV
National Commission on Libraries and Information  45, XVII
     Science
National Council on Disability                    34, XII
National Counterintelligence Center               32, XVIII
National Credit Union Administration              5, LXXXVI; 12, VII
National Crime Prevention and Privacy Compact     28, IX
     Council
National Drug Control Policy, Office of           21, III
National Endowment for the Arts                   2, XXXII
National Endowment for the Humanities             2, XXXIII
National Foundation on the Arts and the           45, XI
     Humanities
National Highway Traffic Safety Administration    23, II, III; 47, VI; 49, V
National Imagery and Mapping Agency               32, I
National Indian Gaming Commission                 25, III
National Institute for Literacy                   34, XI
National Institute of Food and Agriculture        7, XXXIV
National Institute of Standards and Technology    15, II
National Intelligence, Office of Director of      32, XVII
National Labor Relations Board                    5, LXI; 29, I
National Marine Fisheries Service                 50, II, IV
National Mediation Board                          29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI
National Park Service                             36, I
National Railroad Adjustment Board                29, III

[[Page 562]]

National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       2, XXV; 5, XLIII; 45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI
National Security Council and Office of Science   47, II
     and Technology Policy
National Telecommunications and Information       15, XXIII; 47, III, IV
     Administration
National Transportation Safety Board              49, VIII
Natural Resources Conservation Service            7, VI
Natural Resource Revenue, Office of               30, XII
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy Department                                   32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Northeast Interstate Low-Level Radioactive Waste  10, XVIII
     Commission
Nuclear Regulatory Commission                     2, XX; 5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Ocean Energy Management, Bureau of                30, V
Offices of Independent Counsel                    28, VI
Office of Workers' Compensation Programs          20, VII
Oklahoma City National Memorial Trust             36, XV
Operations Office                                 7, XXVIII
Overseas Private Investment Corporation           5, XXXIII; 22, VII
Patent and Trademark Office, United States        37, I
Payment From a Non-Federal Source for Travel      41, 304
     Expenses
Payment of Expenses Connected With the Death of   41, 303
     Certain Employees
Peace Corps                                       2, XXXVII; 22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I, XXXV; 45, VIII
  Human Resources Management and Labor Relations  5, XCVII
       Systems, Department of Homeland Security
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
       Acquisition Regulation
  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Pipeline and Hazardous Materials Safety           49, I
     Administration
Postal Regulatory Commission                      5, XLVI; 39, III
Postal Service, United States                     5, LX; 39, I
Postsecondary Education, Office of                34, VI
President's Commission on White House             1, IV
     Fellowships
Presidential Documents                            3
Presidio Trust                                    36, X
Prisons, Bureau of                                28, V
Private and Civil Liberties Oversight Board       6, X
Procurement and Property Management, Office of    7, XXXII
Productivity, Technology and Innovation,          37, IV
     Assistant Secretary
Public Contracts, Department of Labor             41, 50
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Recovery Accountability and Transparency Board    4, II
Refugee Resettlement, Office of                   45, IV
Relocation Allowances                             41, 302
Research and Innovative Technology                49, XI
     Administration
Rural Business-Cooperative Service                7, XVIII, XLII, L
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII, XXXV, L
Rural Telephone Bank                              7, XVI
Rural Utilities Service                           7, XVII, XVIII, XLII, L

[[Page 563]]

Saint Lawrence Seaway Development Corporation     33, IV
Science and Technology Policy, Office of          32, XXIV
Science and Technology Policy, Office of, and     47, II
     National Security Council
Secret Service                                    31, IV
Securities and Exchange Commission                5, XXXIV; 17, II
Selective Service System                          32, XVI
Small Business Administration                     2, XXVII; 13, I
Smithsonian Institution                           36, V
Social Security Administration                    2, XXIII; 20, III; 48, 23
Soldiers' and Airmen's Home, United States        5, XI
Special Counsel, Office of                        5, VIII
Special Education and Rehabilitative Services,    34, III
     Office of
State Department                                  2, VI; 22, I; 28, XI
  Federal Acquisition Regulation                  48, 6
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Technology Administration                         15, XI
Technology Policy, Assistant Secretary for        37, IV
Tennessee Valley Authority                        5, LXIX; 18, XIII
Thrift Supervision Office, Department of the      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     2, XII; 5, L
  Commercial Space Transportation                 14, III
  Contract Appeals, Board of                      48, 63
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II
  Federal Motor Carrier Safety Administration     49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Maritime Administration                         46, II
  National Highway Traffic Safety Administration  23, II, III; 47, IV; 49, V
  Pipeline and Hazardous Materials Safety         49, I
       Administration
  Saint Lawrence Seaway Development Corporation   33, IV
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Surface Transportation Board                    49, X
  Transportation Statistics Bureau                49, XI
Transportation, Office of                         7, XXXIII
Transportation Security Administration            49, XII
Transportation Statistics Bureau                  49, XI
Travel Allowances, Temporary Duty (TDY)           41, 301
Treasury Department                               5, XXI; 12, XV; 17, IV; 
                                                  31, IX
  Alcohol and Tobacco Tax and Trade Bureau        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs and Border Protection                   19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Claims Collection Standards             31, IX
  Federal Law Enforcement Training Center         31, VII
  Financial Crimes Enforcement Network            31, X
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  Investment Security, Office of                  31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
  Thrift Supervision, Office of                   12, V
Truman, Harry S. Scholarship Foundation           45, XVIII
United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
   and Water Commission, United States Section
[[Page 564]]

U.S. Copyright Office                             37, II
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       2, VIII; 38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training Service,        41, 61; 20, IX
     Office of the Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Vocational and Adult Education, Office of         34, IV
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I
World Agricultural Outlook Board                  7, XXXVIII

[[Page 565]]







                      Table of OMB Control Numbers



The OMB control numbers for chapter I of title 47 are consolidated into 
Sec.  0.408. For the convenience of the user, Sec.  0.408 is reprinted 
below.

Sec.  0.408  OMB control numbers and expiration dates assigned pursuant 
          to the Paperwork Reduction Act of 1995.

    (a) Purpose. This section displays the OMB control numbers and 
expiration dates for the Commission information collection requirements 
assigned by the Office of Management and Budget (``OMB'') pursuant to 
the Paperwork Reduction Act of 1995, Public Law 104-13. The Commission 
intends that this section comply with the requirement that agencies 
``display'' current control numbers and expiration dates assigned by the 
Director, OMB, for each approved information collection requirement. 
Notwithstanding any other provisions of law, no person shall be subject 
to any penalty for failing to comply with a collection of information 
subject to the Paperwork Reduction Act (PRA) that does not display a 
currently valid OMB control number. Questions concerning the OMB control 
numbers and expiration dates should be directed to the Associate 
Managing Director--Performance Evaluation and Records Management, 
(``AMD-PERM''), Office of Managing Director, Federal Communications 
Commission, Washington, DC 20554 by sending an email to Judith-
[email protected].
    (b) Display.

----------------------------------------------------------------------------------------------------------------
                                             FCC form number or 47 CFR
                                           section or part, docket number
             OMB Control No.                  or title identifying the              OMB expiration date
                                                     collection
----------------------------------------------------------------------------------------------------------------
3060-0004...............................  Secs. 1.1307 and 1.1311,         05/31/14
                                           Guidelines for Evaluating the
                                           Environmental Effects of
                                           Radiofrequency Radiation, ET
                                           Docket No. 93-62.
3060-0009...............................  FCC 316........................  05/31/13
3060-0010...............................  FCC 323........................  10/31/12
3060-0016...............................  FCC 346........................  03/31/14
3060-0017...............................  FCC 347........................  11/30/14
3060-0027...............................  FCC 301........................  04/30/15
3060-0029...............................  FCC 340........................  07/31/14
3060-0031...............................  FCC 314 and FCC 315............  05/31/13
3060-0053...............................  FCC 702 and FCC 703............  07/31/14
3060-0055...............................  FCC 327........................  02/28/15
3060-0056...............................  Part 68--Connection of Terminal  03/31/14
                                           Equipment to the Telephone
                                           Network.
3060-0057...............................  FCC 731........................  03/31/14
3060-0059...............................  FCC 740........................  03/31/13
3060-0061...............................  FCC 325........................  06/30/14
3060-0065...............................  FCC 442........................  06/30/14
3060-0075...............................  FCC 345........................  04/30/15
3060-0076...............................  FCC 395........................  09/30/13
3060-0084...............................  FCC 323-E......................  01/31/14
3060-0093...............................  FCC 405........................  10/31/14
3060-0095...............................  FCC 395-A......................  08/31/14
3060-0106...............................  Sec. 43.61, Part 43, Reporting   10/31/14
                                           Requirements for U.S.
                                           Providers of International
                                           Telecommunications Services
                                           and Affiliates.
3060-0110...............................  FCC 303-S......................  02/28/14
3060-0113...............................  FCC 396........................  04/30/15
3060-0120...............................  FCC 396-A......................  06/30/15
3060-0126...............................  Sec. 73.1820...................  09/30/14
3060-0132...............................  FCC 1068A......................  05/31/15
3060-0139...............................  FCC 854........................  04/30/15
3060-0147...............................  Sec. 64.804....................  09/30/14
3060-0149...............................  Part 63, Section 214, Secs.      12/31/12
                                           63.01, 63.602; 63.50, 63.51,
                                           63.52, 63.53; 63.61, 63.62,
                                           63.63; 63.65, 63.66; 63.71;
                                           63.90; 63.500, 63.501; 63.504,
                                           63.505 and 63.601.
3060-0157...............................  Sec. 73.99.....................  08/31/14
3060-0161...............................  Sec. 73.61.....................  01/31/15
3060-0166...............................  Part 42, Secs. 42.4, 42.5, 42.6  09/30/13
                                           and 42.7.
3060-0168...............................  Sec. 43.43.....................  09/30/12

[[Page 566]]

 
3060-0169...............................  Sec. 43.51.....................  10/31/14
3060-0170...............................  Sec. 73.1030...................  08/31/13
3060-0171...............................  Sec. 73.1125...................  08/31/13
3060-0174...............................  Secs. 73.1212, 76.1615, and      06/30/15
                                           76.1715.
3060-0175...............................  Sec. 73.1250...................  03/31/14
3060-0176...............................  Sec. 73.1510...................  08/31/14
3060-0178...............................  Sec. 73.1560...................  06/30/14
3060-0179...............................  Sec. 73.1590...................  09/30/13
3060-0180...............................  Sec. 73.1610...................  07/31/13
3060-0182...............................  Sec. 73.1620...................  02/28/13
3060-0185...............................  Sec. 73.3613...................  11/30/13
3060-0188...............................  Call Sign Reservation and        08/31/13
                                           Authorization System.
3060-0190...............................  Sec. 73.3544...................  10/31/12
3060-0192...............................  Sec. 87.103....................  10/31/13
3060-0202...............................  Sec. 87.37.....................  04/30/15
3060-0204...............................  Sec. 90.20(a)(2)(v) and          10/31/14
                                           90.20(a)(2)(xi).
3060-0207...............................  Part 11--Emergency Alert System  02/28/15
                                           (EAS).
3060-0208...............................  Sec. 73.1870...................  02/28/15
3060-0213...............................  Sec. 73.3525...................  02/28/15
3060-0214...............................  Secs. 73.3526 and 73.3527;       06/30/15
                                           Secs. 76.1701 and 73.1943.
3060-0216...............................  Secs. 73.3538 and 73.1690(e)...  11/30/13
3060-0221...............................  Sec. 90.155....................  01/31/14
3060-0222...............................  Sec. 97.213....................  06/30/15
3060-0223...............................  Sec. 90.129....................  09/30/14
3060-0228...............................  Sec. 80.59 and FCC 806, 824,     07/31/13
                                           827 and 829.
3060-0233...............................  Part 36--Separations...........  11/30/12
3060-0236...............................  Sec. 74.703....................  03/31/14
3060-0248...............................  Sec. 74.751....................  11/30/13
3060-0249...............................  Secs. 74.781, 74.1281, and       04/30/15
                                           78.69.
3060-0250...............................  Secs. 73.1207, 74.784 and        08/31/12
                                           74.1284.
3060-0259...............................  Sec. 90.263....................  08/31/12
3060-0261...............................  Sec. 90.215....................  07/31/13
3060-0262...............................  Sec. 90.179....................  04/30/14
3060-0264...............................  Sec. 80.413....................  08/31/12
3060-0265...............................  Sec. 80.868....................  05/31/13
3060-0270...............................  Sec. 90.443....................  01/31/13
3060-0281...............................  Sec. 90.651....................  05/31/13
3060-0286...............................  Sec. 80.302....................  02/28/13
3060-0288...............................  Sec. 78.33.....................  07/31/14
3060-0289...............................  Secs. 76.601, 76.1704, 76.1705,  05/31/14
                                           and 76.1717.
3060-0290...............................  Sec. 90.517....................  03/31/14
3060-0291...............................  Sec. 90.477(a), (b)(2), (d)(2)   07/31/14
                                           and (d)(3).
3060-0292...............................  Part 69 and Sec. 69.605........  02/28/13
3060-0295...............................  Sec. 90.607(b)(1) and (c)(1)...  04/30/13
3060-0297...............................  Sec. 80.503....................  08/31/12
3060-0298...............................  Part 61, Tariffs (Other than     05/31/15
                                           Tariff Review Plan).
3060-0307...............................  Parts 1, 22 and 90 Rules to      01/31/13
                                           Facilitate Development of SMR
                                           Systems in the 800 MHz
                                           Frequency Band.
3060-0308...............................  Sec. 90.505....................  04/30/13
3060-0310...............................  Sec. 76.1801 and FCC 322.......  01/31/15
3060-0311...............................  Sec. 76.54.....................  03/31/14
3060-0316...............................  Secs. 76.1700, 76.1702,          12/31/13
                                           76.1703, 76.1704, 76.1707, and
                                           76.1711.
3060-0320...............................  Sec. 73.1350...................  11/30/12
3060-0325...............................  Sec. 80.605....................  08/31/14
3060-0329...............................  Sec. 2.955.....................  01/31/15
3060-0331...............................  FCC 321........................  01/31/15
3060-0332...............................  Secs. 76.614 and 76.1706.......  08/31/13
3060-0340...............................  Sec. 73.51.....................  10/31/12
3060-0341...............................  Sec. 73.1680...................  01/31/15
3060-0346...............................  Sec. 78.27.....................  10/31/12
3060-0347...............................  Sec. 97.311....................  09/30/14
3060-0349...............................  Secs. 73.2080, 76.73, 76.75,     12/31/12
                                           76.79, and 76.1702.
3060-0355...............................  FCC 492 and FCC 492A...........  05/31/13
3060-0357...............................  Sec. 63.701....................  02/28/14
3060-0360...............................  Sec. 80.409....................  01/31/14
3060-0370...............................  Part 32--Uniform System of       01/31/14
                                           Accounts for
                                           Telecommunications Companies.
3060-0384...............................  Secs. 64.901, 64.904 and 64.905  12/31/13
3060-0386...............................  Secs. 1.5, 73.1615, 73.1635,     11/30/14
                                           73.1740, 73.3598, 74.788, and
                                           FCC 337.
3060-0387...............................  Secs. 15.201(d), 15.209,         05/31/15
                                           15.211, 15.213 and 15.221.
3060-0390...............................  FCC 395-B......................  09/30/14
3060-0391...............................  Parts 54 and 36, Program to      03/31/14
                                           Monitor the Impacts of the
                                           Universal Service Support
                                           Mechanisms.
3060-0392...............................  47 CFR Part 1, Subpart J, Pole   12/31/12
                                           Attachment Complaint
                                           Procedures.

[[Page 567]]

 
3060-0394...............................  Sec. 1.420.....................  04/30/14
3060-0395...............................  FCC Reports 43-02, FCC 43-05     09/30/14
                                           and FCC 43-07.
3060-0398...............................  Secs. 2.948 and 15.117(g)(2)...  09/30/13
3060-0400...............................  Tariff Review Plan (TRP).......  05/31/15
3060-0404...............................  FCC 350........................  11/30/13
3060-0405...............................  FCC 349........................  04/30/13
3060-0410...............................  FCC 495A and FCC 495B..........  09/30/14
3060-0411...............................  FCC 485........................  09/30/14
3060-0414...............................  Terrain Shielding Policy.......  10/31/12
3060-0419...............................  Secs. 76.94, 76.95, 76.105,      06/30/14
                                           76.106, 76.107, and 76.1609.
3060-0422...............................  Sec. 68.5......................  08/31/13
3060-0423...............................  Sec. 73.3588...................  04/30/14
3060-0430...............................  Sec. 1.1206....................  12/31/14
3060-0433...............................  FCC 320........................  05/31/14
3060-0434...............................  Sec. 90.20(e)(6)...............  07/31/14
3060-0439...............................  Sec. 64.201....................  09/30/13
3060-0441...............................  Secs. 90.621 and 90.693........  08/31/12
3060-0454...............................  Secs. 43.51, 64.1001 and         06/30/14
                                           64.1002.
3060-0463...............................  Telecommunications Relay         06/30/14
                                           Services and Speech-to-Speech
                                           Services for Individuals with
                                           Hearing and Speech
                                           Disabilities, Report and Order
                                           and Declaratory Ruling, CG
                                           Doc. No. 03-123, FCC 07-186.
3060-0466...............................  Secs. 73.1201, 74.783 and        10/31/13
                                           74.1283.
3060-0470...............................  Secs. 64.901 and 64.903, and     06/30/14
                                           RAO Letters 19 and 26.
3060-0473...............................  Sec. 74.1251...................  05/31/14
3060-0474...............................  Sec. 74.1263...................  09/30/14
3060-0484...............................  Secs. 4.1 and 4.2 and Part 4 of  02/28/14
                                           the Commission's Rules
                                           Concerning Disruptions to
                                           Communications (NORS).
3060-0489...............................  Sec. 73.37.....................  06/30/15
3060-0496...............................  FCC Report 43-08...............  04/30/13
3060-0500...............................  Sec. 76.1713...................  08/31/13
3060-0501...............................  Secs. 73.1942, 76.206 and        10/31/14
                                           76.1611.
3060-0506...............................  FCC 302-FM.....................  11/30/14
3060-0508...............................  Part 1 and Part 22 Reporting     09/30/14
                                           and Recordkeeping Requirements.
3060-0511...............................  FCC Report 43-04...............  11/30/14
3060-0512...............................  FCC Report 43-01...............  04/30/15
3060-0519...............................  Rules and Regulations            10/31/14
                                           Implementing the Telephone
                                           Consumer Protection Act (TCPA)
                                           of 1991, Order, CG Docket No.
                                           02-278.
3060-0526...............................  Sec. 69.123, Density Pricing     05/31/14
                                           Zone Plans, Expanded
                                           Interconnection with Local
                                           Telephone Company Facilities.
3060-0531...............................  Secs. 101.1011, 101.1325(b),     01/31/13
                                           101.1327(a), 101.527, 101.529,
                                           and 101.103.
3060-0532...............................  Secs. 2.1033 and 15.121........  08/31/14
3060-0537...............................  Sec. 13.217....................  03/31/14
3060-0546...............................  Sec. 76.59.....................  09/30/14
3060-0548...............................  Secs. 76.1708, 76.1709,          06/30/14
                                           76.1620, 76.56 and 76.1614.
3060-0550...............................  FCC 328........................  05/31/14
3060-0560...............................  Sec. 76.911....................  05/31/13
3060-0562...............................  Sec. 76.916....................  12/31/12
3060-0565...............................  Sec. 76.944....................  03/31/15
3060-0568...............................  Secs. 76.970, 76.971 and 76.975  04/30/15
3060-0569...............................  Sec. 76.975....................  01/31/15
3060-0572...............................  Secs. 43.82, International       10/31/14
                                           Circuit Status Reports.
3060-0573...............................  FCC 394........................  02/28/15
3060-0580...............................  Sec. 76.1710...................  11/30/12
3060-0584...............................  FCC 44 and FCC 45..............  03/31/15
3060-0589...............................  FCC 159, FCC 159-B, FCC 159-C,   03/31/14
                                           FCC 159-E and 159-W.
3060-0594...............................  FCC 1220.......................  05/31/13
3060-0599...............................  Secs. 90.647 and 90.425........  02/28/13
3060-0600...............................  Application to Participate in a  09/30/12
                                           FCC Auction.
3060-0601...............................  FCC 1200.......................  05/31/13
3060-0607...............................  Sec. 76.922....................  01/31/15
3060-0609...............................  Sec. 76.934(e).................  06/30/13
3060-0625...............................  Sec. 24.103....................  04/30/13
3060-0626...............................  Sec. 90.483....................  01/31/14
3060-0627...............................  FCC 302-AM.....................  11/30/14
3060-0633...............................  Secs. 73.1230, 74.165, 74.432,   08/31/13
                                           74.564, 74.664, 74.765, 74.832
                                           and 74.1265.
3060-0634...............................  Sec. 73.691....................  11/30/12
3060-0636...............................  Secs. 2.906, 2.909, 2.1071,      05/31/15
                                           2.1075, 2.1076, 2.1077 and
                                           15.37.
3060-0645...............................  Secs. 17.4, 17.48 and 17.49....  04/30/15
3060-0647...............................  Cable Price Survey and           08/31/13
                                           Supplemental Questions and FCC
                                           333.
3060-0649...............................  Secs. 76.1601, 76.1617, 76.1697  08/31/13
                                           and 76.1708.
3060-0652...............................  Secs. 76.309, 76.1602, 76.160    07/31/14
                                           and 76.1619.
3060-0653...............................  Sec. 64.703(b) and (c).........  03/31/14

[[Page 568]]

 
3060-0655...............................  Requests for Waivers of          07/31/13
                                           Regulatory and Application
                                           Fees.
3060-0665...............................  Sec. 64.707....................  10/31/13
3060-0667...............................  Secs. 76.630, 76.1621 and        03/31/14
                                           76.1622.
3060-0668...............................  Sec. 76.936....................  09/30/13
3060-0669...............................  Sec. 76.946....................  11/30/13
3060-0674...............................  Sec. 76.1618...................  06/30/14
3060-0678...............................  Part 25 of the Commission's      09/30/13
                                           Rules Governing the Licensing
                                           of, and Spectrum Usage by,
                                           Satellite Network Stations and
                                           Space Stations.
3060-0685...............................  FCC 1210 and FCC 1240..........  12/31/14
3060-0686...............................  Secs. 63.10, 63.11, 63.13,       02/28/14
                                           63.18, 63.19, 63.21, 63.24,
                                           63.25 and 1.1311,
                                           International Section 214
                                           Process and Tariff
                                           Requirements and FCC 214, FCC
                                           214TC and FCC 214STA.
3060-0687...............................  Access to Telecommunications     05/31/15
                                           Equipment and Services by
                                           Persons with Disabilities, CC
                                           Docket No. 87-124.
3060-0688...............................  FCC 1235.......................  08/31/13
3060-0690...............................  Sec. 101.17....................  04/30/15
3060-0691...............................  Sec. 90.665....................  07/31/13
3060-0692...............................  Secs. 76.613, 76.802 and 76.804  02/28/13
3060-0695...............................  Sec. 87.219....................  10/31/14
3060-0698...............................  Secs. 25.203(i) and              03/31/14
                                           73.1030(a)(2), Radio Astronomy
                                           Coordination Zone in Puerto
                                           Rico.
3060-0700...............................  FCC 1275.......................  07/31/13
3060-0703...............................  FCC 1205.......................  01/31/15
3060-0704...............................  Secs. 42.10, 42.11 and 64.1900   09/30/14
                                           and Section 254(g), Policy and
                                           Rule Concerning the
                                           Interstate, Interexchange
                                           Marketplace.
3060-0706...............................  Secs. 76.952 and 76.990, Cable   06/30/14
                                           Act Reform.
3060-0707...............................  Over-the Air Reception Devices   03/31/14
                                           (OTARD).
3060-0710...............................  Policy and Rules Under Parts 1   07/31/13
                                           and 51 Concerning the
                                           Implementation of the Local
                                           Competition Provisions in the
                                           Telecommunications Act of
                                           1996--CC Docket No. 96-98.
3060-0713...............................  Alternative Broadcast            04/30/14
                                           Inspection Program (ABIP)
                                           Compliance Notification.
3060-0715...............................  Telecommunications Carriers'     07/31/14
                                           Use of Customer Proprietary
                                           Network Information (CPNI) and
                                           Other Customer Information--CC
                                           Docket No. 96-115.
3060-0716...............................  Secs. 73.88, 73.718, 73.685 and  04/30/15
                                           73.1630.
3060-0717...............................  Secs. 64.703(a), 64.709 and      06/30/14
                                           64.710.
3060-0718...............................  Part 101 Rule Sections           04/30/15
                                           Governing the Terrestrial
                                           Microwave Fixed Radio Service.
3060-0719...............................  Quarterly Report of IntraLATA    03/31/13
                                           Carriers Listing Payphone
                                           Automatic Number
                                           Identifications (ANIs).
3060-0723...............................  47 U.S.C. Section 276, Public    10/31/12
                                           Disclosure of Network
                                           Information by Bell Operating
                                           Companies (BOCs).
3060-0725...............................  Quarterly Filing of              05/31/15
                                           Nondiscrimination Reports (on
                                           Quality of Service,
                                           Installation, and Maintenance)
                                           by Bell Operating Companies
                                           (BOC's).
3060-0727...............................  Sec. 73.213....................  10/31/12
3060-0734...............................  Secs. 53.209, 53.211 and 53.213  08/31/14
3060-0737...............................  Disclosure Requirements for      01/31/15
                                           Information Services Provided
                                           Under a Presubscription or
                                           Comparable Arrangement.
3060-0740...............................  Sec. 95.1015...................  10/31/14
3060-0741...............................  Implementation of the Local      01/31/14
                                           Competition Provisions on the
                                           Telecommunications Act of
                                           1996--CC Docket No. 96-98.
3060-0742...............................  Secs. 52.21, 52.22, 52.23,       07/31/13
                                           52.24, 52.25, 52.26, 52.27,
                                           52.28, 52.29, 52.30, 52.31,
                                           52.32, 52.33, 52.34, 52.35 and
                                           52.36; and CC Docket No. 95-
                                           116.
3060-0743...............................  Implementation of the Pay        02/28/13
                                           Telephone Reclassification and
                                           Compensation Provisions of the
                                           Telecommunications Act of
                                           1996--CC Docket No. 96-128.
3060-0745...............................  Implementation of the Local      10/31/12
                                           Exchange Carrier Tariff
                                           Streamlining Provisions of the
                                           Telecommunications Act of
                                           1996, CC Docket No. 96-187.
3060-0748...............................  Secs. 64.1504, 64.1509 and       04/30/13
                                           64.1510, Pay-Per-Call and
                                           Other Information Services.
3060-0750...............................  Secs. 73.671 and 73.673........  06/30/14
3060-0751...............................  Sec. 43.51.....................  08/31/14
3060-0754...............................  FCC 398........................  04/30/15
3060-0755...............................  Secs. 59.1, 59.2, 59.3 and 59.4  01/31/15
3060-0758...............................  Secs. 5.55, 5.61, 5.75, 5.85,    04/30/13
                                           and 5.93, Experimental Radio
                                           Service Regulations, ET Docket
                                           No. 96-256.
3060-0760...............................  272 Sunset Order; WC Docket No.  09/30/14
                                           06-120; Access Charge Reform,
                                           CC Docket No. 96-262, First
                                           Report and Order; Second Order
                                           on Reconsideration and
                                           Memorandum Opinion and Order;
                                           and Fifth Report and Order.
3060-0761...............................  Sec. 79.1......................  Pending OMB review and approval.
3060-0763...............................  FCC Report 43-06...............  02/28/15

[[Page 569]]

 
3060-0767...............................  Secs. 1.2110, 1.2111 and         06/30/14
                                           1.2112, Auction and Licensing
                                           Disclosures--Ownership and
                                           Small Business Status.
3060-0768...............................  28 GHz Band Segmentation Plan    08/31/14
                                           Amending the Commission's
                                           Rules to Redesignate the 27.5-
                                           29.5 GHz Frequency Band, to
                                           Reallocate the 29.5-30.0 GHz
                                           Frequency Band, and to
                                           Establish Rules and Policies.
3060-0770...............................  Secs. 1.774, 61.49, 61.55,       10/31/14
                                           61.58, 69.4, 69.707, 69.713
                                           and 69.729.
3060-0773...............................  Sec. 2.803.....................  12/31/12
3060-0774...............................  Parts 36 and 54, Federal-State   06/30/14
                                           Joint Board on Universal
                                           Service.
3060-0775...............................  Sec. 64.1903...................  04/30/13
3060-0779...............................  Secs. 90.20(a)(1)(iii), 90.769,  11/30/13
                                           90.767, 90.763(b)(l)(i)(a),
                                           90.763(b)(l)(i)(B), 90.771(b)
                                           and 90.743, Rules for Use of
                                           the 220 MHz Band by the
                                           Private Land Mobile Radio
                                           Service (PLMRS).
3060-0782...............................  Petition for Limited             11/30/12
                                           Modification of LATA
                                           Boundaries to Provide Expanded
                                           Local Calling Service (ELCS)
                                           at Various Locations.
3060-0783...............................  Sec. 90.176....................  01/31/15
3060-0787...............................  Implementation of Subscriber     07/31/14
                                           Carrier Selection Changes
                                           Provisions of the
                                           Telecommunications Act of
                                           1996; Policies and Rules
                                           Concerning Unauthorized
                                           Changes of Consumers' Long
                                           Distance Carriers.
3060-0788...............................  DTV Showings/Interference        10/31/13
                                           Agreements.
3060-0790...............................  Sec. 68.110(c).................  09/30/12
3060-0791...............................  Sec. 32.7300...................  09/30/12
3060-0795...............................  FCC 606........................  08/31/14
3060-0798...............................  FCC 601........................  04/30/15
3060-0799...............................  FCC 602........................  09/30/13
3060-0800...............................  FCC 603........................  02/28/14
3060-0804...............................  FCC 465, FCC 466, FCC 466-A and  11/30/14
                                           FCC 467.
3060-0805...............................  Secs. 90.523, 90.527, 90.545     07/31/14
                                           and 90.1211.
3060-0806...............................  FCC 470 and FCC 471............  10/31/13
3060-0807...............................  Sec. 51.803 and Supplemental     07/31/13
                                           Procedures for Petitions to
                                           Section 252(e)(5) of the
                                           Communications Act of 1934, as
                                           amended.
3060-0809...............................  Communications Assistance for    02/28/14
                                           Law Enforcement Act (CALEA).
3060-0812...............................  Exemption from Payment of        12/31/14
                                           Regulatory Fees When Claiming
                                           Non-Profit Status.
3060-0813...............................  Sec. 20.18, Enhanced 911         02/28/15
                                           Emergency Calling Systems.
3060-0814...............................  Sec. 54.301, Local Switching     12/31/13
                                           Support and Local Switching
                                           Support Data Collection Form
                                           and Instructions.
3060-0816...............................  FCC 477........................  04/30/13
3060-0817...............................  Computer III Further Remand      06/30/15
                                           Proceedings: BOC Provision of
                                           Enhanced Services (ONA
                                           Requirements), CC Docket No.
                                           95-20.
3060-0819...............................  Secs. 54.400-54.707 and FCC 497  10/31/12
3060-0823...............................  Part 64, Pay Telephone           03/31/14
                                           Reclassification.
3060-0824...............................  FCC 498........................  11/30/12
3060-0833...............................  Implementation of Section 255    05/31/14
                                           of the Telecommunications Act
                                           of 1996: Complaint Filings.
3060-0835...............................  FCC 806, FCC 824, FCC 827 and    09/30/12
                                           FCC 829.
3060-0837...............................  FCC 302-TV.....................  04/30/13
3060-0844...............................  Carriage of the Transmissions    10/31/13
                                           of Digital Television
                                           Broadcast Stations.
3060-0848...............................  Deployment of Wireline Services  02/28/15
                                           Offering Advanced
                                           Telecommunications Capability--
                                           CC Docket No. 98-147.
3060-0849...............................  Commercial Availability of       07/31/14
                                           Navigation Devices.
3060-0850...............................  FCC 605........................  06/30/14
3060-0853...............................  FCC 479, FCC 486 and FCC 500...  10/31/13
3060-0854...............................  Truth-in-Billing Format, CC      09/30/14
                                           Docket No. 98-170 and CG
                                           Docket No. 04-208.
3060-0855...............................  FCC 499-A and FCC 499-Q........  10/31/14
3060-0856...............................  FCC 472, FCC 473 and FCC 474...  06/30/13
3060-0859...............................  Public Notice--Suggested         05/31/15
                                           Guidelines for Petitions for
                                           Ruling under Section 253 of
                                           the Telecommunications Act.
3060-0862...............................  Handling Confidential            07/31/14
                                           Information.
3060-0863...............................  Satellite Delivery of Network    06/30/14
                                           Signals to Unserved Households
                                           for Purposes of the Satellite
                                           Home Viewer Act (SHVA).
3060-0865...............................  Wireless Telecommunications      08/31/13
                                           Bureau Universal Licensing
                                           System Recordkeeping and Third-
                                           Party Disclosure Requirements.
3060-0874...............................  FCC 475B, FCC 501, FCC 2000      Pending OMB review and approval.
                                           Series A-F, FCC 1088A, B, C,
                                           D, E, F, and H.
3060-0876...............................  Sec. 54.703 and Secs. 54.719,    10/31/12
                                           54.720, 54.721, 54.722,
                                           54.723, 54.724 and 54.725.
3060-0881...............................  Sec. 95.861....................  07/31/14
3060-0882...............................  Sec. 95.833....................  10/31/14
3060-0888...............................  Secs. 1.221, 1.229, 1.248,       01/31/15
                                           76.7, 76.9, 76.61, 76.914,
                                           76.1001, 76.1003, 76.1302 and
                                           76.1513.
3060-0895...............................  Sec. 52.15, CC Docket No. 99-    06/30/13
                                           200 and FCC 502.
3060-0896...............................  Broadcast Auction Form Exhibits  10/31/14

[[Page 570]]

 
3060-0905...............................  Sec. 18.213....................  08/31/14
3060-0906...............................  FCC 317 and Sec. 73.624(g).....  11/30/14
3060-0910...............................  Third Report and Order in CC     09/30/12
                                           Docket No. 94-102 to Ensure
                                           Compatibility with Enhanced
                                           911 Emergency Calling Systems.
3060-0912...............................  Secs. 76.501, 76.503 and         03/31/15
                                           76.504, Cable Attribution
                                           Rules.
3060-0917...............................  FCC 160........................  05/31/13
3060-0918...............................  FCC 161........................  05/31/13
3060-0920...............................  FCC 318........................  05/31/14
3060-0922...............................  FCC 397........................  03/31/15
3060-0927...............................  Auditor's Annual Independence    02/28/15
                                           and Objectivity Certification.
3060-0928...............................  FCC 302-CA.....................  10/31/12
3060-0931...............................  Sec. 80.103, Digital Selective   07/31/12
                                           Calling (DSC) Operating
                                           Procedures; Maritime Mobile
                                           Services Identity (MMSI).
3060-0932...............................  FCC 301-CA and Sec. 74.793(d)..  11/30/13
3060-0936...............................  Secs. 95.1215 and 95.1217......  06/30/15
3060-0937...............................  Establishment of a Class A       07/31/13
                                           Television Service, MM Docket
                                           No. 00-10.
3060-0938...............................  FCC 319........................  02/28/15
3060-0942...............................  Access Charge Reform, Price Cap  06/30/13
                                           Performance Review for Local
                                           Exchange Carriers, Low-Volume
                                           Long Distance Users, Federal-
                                           State Joint Board on Universal
                                           Service.
3060-0944...............................  Secs. 1.767 and 1.768,;          02/28/14
                                           Executive Order (E.O.) 10530,
                                           Cable Landing License Act; FCC
                                           220.
3060-0950...............................  Bidding Credits for Tribal       08/31/13
                                           Lands.
3060-0951...............................  Sec. 1.1204(b) Note, and Sec.    03/31/13
                                           1.1206(a) Note 1.
3060-0952...............................  Proposed Demographic             03/31/13
                                           Information and Notifications,
                                           Second FNPRM, CC Docket Nos.
                                           98-147.
3060-0953...............................  Secs. 95.1111 and 95.1113......  05/31/13
3060-0955...............................  Secs. 25.114, 25.115, 25.133,    01/31/13
                                           25.137, 25.143, 25.203, and
                                           25.279; 2 GHz Mobile Satellite
                                           Service Reports.
3060-0957...............................  Sec. 20.18(i) and (g)..........  12/31/13
3060-0960...............................  Secs. 76.122, 76.123, 76.124     03/31/14
                                           and 76.127.
3060-0962...............................  Redesignation of the 18 GHz      08/31/14
                                           Frequency Band, Blanket
                                           Licensing of Satellite Earth
                                           Stations in the Ka-Band, and
                                           the Allocation of Additional
                                           Spectrum for Broadcast
                                           Satellite Service Use.
3060-0967...............................  Sec. 79.2......................  08/31/13
3060-0971...............................  Sec. 52.15.....................  02/28/14
3060-0972...............................  FCC 507, FCC 508 and FCC 509,    02/28/14
                                           Multi-Association Group (MAG)
                                           Plan Order, Parts 54 and 69
                                           Filing Requirements for
                                           Regulation of Interstate
                                           Services of Non-Price Cap
                                           Incumbent LECs and
                                           Interexchange Carriers.
3060-0973...............................  Sec. 64.1120(e)................  09/30/13
3060-0975...............................  Secs. 68.3 and 1.4000..........  11/30/13
3060-0979...............................  License Audit Letter...........  01/31/13
3060-0980...............................  Sec. 76.66, Implementation of    07/31/14
                                           the Satellite Home Viewer
                                           Extension and Reauthorization
                                           Act of 1999; (SHVERA) Rules,
                                           Local Broadcast Signal
                                           Carriage Issues,
                                           Retransmission Consent Issues.
3060-0984...............................  Secs. 90.35(b)(2) and            01/31/14
                                           90.175(b)(1).
3060-0986...............................  FCC 525........................  04/30/15
3060-0987...............................  Sec. 20.18(l)(1)(i-iii) and      09/30/14
                                           20.18(l)(2)(i-iii), 911
                                           Callback Capability; Non-
                                           initialized Handsets.
3060-0989...............................  Secs. 63.01, 63.03 and 63.04...  07/31/14
3060-0991...............................  AM Measurement Data............  01/31/15
3060-0992...............................  Sec. 54.507(d)(1)-(4)..........  09/30/13
3060-0994...............................  Flexibility for Delivery of      02/28/13
                                           Communications by Mobile
                                           Satellite Service Providers in
                                           the 2 GHz Band, the L-Band,
                                           and the 1.6/2.4 GHz Band.
3060-0995...............................  Sec. 1.2105(c).................  01/31/14
3060-0996...............................  AM Auction Section 307(b)        07/31/14
                                           Submissions.
3060-0997...............................  Sec. 52.15(k)..................  04/30/14
3060-0998...............................  Sec. 87.109....................  07/31/13
3060-0999...............................  Sec. 20.19 and Hearing Aid       12/31/13
                                           Compatibility Status Report.
3060-1000...............................  Sec. 87.147....................  12/31/13
3060-1003...............................  Communications Disaster          06/30/15
                                           Information Reporting System
                                           (DIRS).
3060-1004...............................  Commission Rules to Ensure       08/31/12
                                           Compatibility with Enhanced
                                           911 Emergency Calling Systems.
3060-1005...............................  Numbering Resource               05/31/14
                                           Optimization--Phase 3.
3060-1008...............................  Secs. 27.50 and 27.602.........  09/30/14
3060-1013...............................  Mitigation of Orbital Debris...  02/28/14
3060-1014...............................  Ku-Band NGSO FSS...............  12/31/14
3060-1015...............................  Ultra Wideband Transmission      01/31/15
                                           Systems Operating Under Part
                                           15.
3060-1021...............................  Sec. 25.139....................  03/31/14
3060-1022...............................  Secs. 101.1403, 101.103(f),      08/31/14
                                           101.1413, 101.1440 and
                                           101.1417.
3060-1028...............................  International Signaling Point    02/28/14
                                           Code (ISPC).
3060-1029...............................  Data Network Identification      02/28/14
                                           Code (DNIC).
3060-1030...............................  Service Rules for Advanced       06/30/13
                                           Wireless Services (AWS) in the
                                           1.7 GHz and 2.1 GHz Bands.

[[Page 571]]

 
3060-1031...............................  Commission's Initiative to       10/31/12
                                           Implement Enhanced 911 (E911)
                                           Emergency Services.
3060-1033...............................  FCC 396-C......................  02/28/13
3060-1034...............................  Digital Audio Broadcasting       06/30/13
                                           Systems and Their Impact on
                                           the Terrestrial Radio
                                           Broadcast Service and FCC 335-
                                           AM, FCC 335-FM.
3060-1035...............................  FCC 309, FCC 310 and FCC 311,    01/31/15
                                           Part 73, Subpart F,
                                           International Broadcast
                                           Stations.
3060-1039...............................  FCC 620 and FCC 621............  09/30/14
3060-1042...............................  Request for Technical Support--  08/31/13
                                           Help Request Form.
3060-1043...............................  Telecommunications Relay         03/31/14
                                           Services and Speech-to-Speech
                                           Services for Individuals with
                                           Hearing and Speech
                                           Disabilities, Report and
                                           Order, CC Docket No. 98-67;
                                           FCC 04-137.
3060-1044...............................  Review of the Section 251        04/30/13
                                           Unbundling Obligations of
                                           Incumbent Local Exchange
                                           Carriers, CC Docket No. 01-
                                           338, and WC Docket No. 04-313,
                                           FCC 04-290, Order on Remand.
3060-1045...............................  FCC 324 and Sec. 76.1610.......  02/28/15
3060-1046...............................  Part 64, Pay Telephone           06/30/14
                                           Reclassification and
                                           Compensation Provisions of the
                                           Telecommunications Act of 1996.
3060-1047...............................  Telecommunications Relay         01/31/15
                                           Services and Speech-to-Speech
                                           Services for Individuals with
                                           Hearing and Speech
                                           Disabilities, Report and
                                           Order, FCC 03-112.
3060-1048...............................  Sec. 1.929(c)(1)...............  02/28/13
3060-1050...............................  Sec. 97.303....................  10/31/13
3060-1053...............................  Sec. 64.604, Telecommunications  04/30/13
                                           Relay Services, and Speech-to-
                                           Speech Services for
                                           Individuals with Hearing and
                                           Speech Disabilities, Two-Line
                                           Captioned Telephone Order.
3060-1054...............................  FCC 422-IB.....................  02/28/13
3060-1056...............................  FCC 421-IB.....................  01/31/13
3060-1057...............................  FCC 420-IB.....................  01/31/13
3060-1058...............................  FCC 608........................  01/31/14
3060-1059...............................  Global Mobile Personal           11/30/13
                                           Communications by Satellite
                                           (GMPCS)/E911 Call Centers.
3060-1060...............................  Wireless E911 Coordination       11/30/13
                                           Initiative Letter to State 911
                                           Coordinators.
3060-1061...............................  Earth Stations on Board Vessels  12/31/12
                                           (ESVs).
3060-1062...............................  Schools and Libraries Universal  06/30/13
                                           Service Support Mechanism--
                                           Notification of Equipment
                                           Transfers.
3060-1063...............................  Global Mobile Personal           02/28/13
                                           Communications by Satellite
                                           (GMPCS) Authorization,
                                           Marketing and Importation
                                           Rules.
3060-1064...............................  Regulatory Fee Assessment True-  06/30/14
                                           Ups.
3060-1066...............................  FCC 312-R and Secs. 25.121(e)    02/28/13
                                           and 25.131(h).
3060-1067...............................  FCC 312-EZ.....................  03/31/13
3060-1069...............................  Rules and Policies Concerning    05/31/13
                                           Attribution of Joint Sales
                                           Agreements in Local Television
                                           Markets, NPRM, MB Docket No.
                                           94-256, FCC 04-173.
3060-1070...............................  Sec. 101.1523 and Allocation     10/31/14
                                           and Service Rules for the 71-
                                           76 GHz, 81-86 GHz and 92-95
                                           GHz Bands.
3060-1078...............................  Rules and Regulations            11/30/13
                                           Implementing the Controlling
                                           the Assault of Non-Solicited
                                           Pornography and Marketing Act
                                           of 2003 (CAN-SPAM Act), CG
                                           Docket No. 04-53.
3060-1079...............................  Sec. 15.240, Radio Frequency     02/28/14
                                           Identification Equipment
                                           (RFID).
3060-1080...............................  Improving Public Safety          09/30/14
                                           Communications in the 800 MHz
                                           Band; TA-13.1 and TA-14.1.
3060-1081...............................  Secs. 54.202, 54.209, 54.307,    07/31/14
                                           54.313, 54.314 and 54.809.
3060-1084...............................  Rules and Regulations            06/30/13
                                           Implementing Minimum Customer
                                           Account Record Obligations on
                                           All Local and Interexchange
                                           Carriers (CARE), CG Docket No.
                                           02-386.
3060-1085...............................  Sec. 9.5, Interconnected Voice   06/30/15
                                           Over Internet Protocol (VoIP)
                                           E911 Compliance.
3060-1086...............................  Secs. 74.786, 74.787, 74.790,    08/31/14
                                           74.794 and 74.796.
3060-1087...............................  Sec. 15.615....................  06/30/14
3060-1088...............................  Rules and Regulations            05/31/13
                                           Implementing the Telephone
                                           Consumer Protection Act (TCPA)
                                           of 1991, CG Docket No. 05-338,
                                           FCC 06-42.
3060-1089...............................  Telecommunications Relay         12/31/13
                                           Services and Speech-to-Speech
                                           Services for Individuals with
                                           Hearing and Speech
                                           Disabilities, E911
                                           Requirements for IP-Enabled
                                           Service.
3060-1092...............................  FCC 609-T and FCC 611-T........  01/31/14
3060-1094...............................  Secs. 27.14 and 27.1221........  03/31/14
3060-1095...............................  Surrenders of Authorizations     01/31/15
                                           for International Carrier,
                                           Space Station and Earth
                                           Station Licensees.
3060-1096...............................  Prepaid Calling Card Service     04/30/13
                                           Provider Certification, WC
                                           Docket No. 05-68.
3060-1097...............................  Service Rules and Policies for   11/30/14
                                           the Broadcasting Satellite
                                           Service (BSS).
3060-1100...............................  Sec. 15.117(k).................  06/30/13
3060-1101...............................  Children's Television Requests   04/30/13
                                           for Preemption Flexibility.
3060-1103...............................  Sec. 76.41.....................  06/30/13

[[Page 572]]

 
3060-1104...............................  Sec. 83.682(d).................  03/31/14
3060-1105...............................  FCC 387........................  03/31/14
3060-1106...............................  Licensing and Service Rules for  12/31/12
                                           Vehicle Mounted Earth Stations
                                           (VMES).
3060-1108...............................  Consummations of Assignments     06/30/13
                                           and Transfers of Control of
                                           Authorization.
3060-1110...............................  Sunset of the Cellular           10/31/13
                                           Radiotelephone Service Analog
                                           Service Requirement and
                                           Related Matters, FCC 07-103.
3060-1111...............................  Secs. 225 and 255,               04/30/14
                                           Interconnected Voice Over
                                           Internet Protocol (VoIP)
                                           Services.
3060-1112...............................  Comprehensive Review of the      11/30/13
                                           Universal Service Fund
                                           Management, Administration,
                                           and Oversight.
3060-1113...............................  Commercial Mobile Alert System   07/31/14
                                           (CMAS).
3060-1115...............................  DTV Consumer Education           09/30/12
                                           Initiative; Sec. 73.674, and
                                           FCC 388.
3060-1116...............................  Submarine Cable Reporting......  12/31/14
3060-1120...............................  Service Quality Measurement      09/30/14
                                           Plan for Interstate Special
                                           Access and Monthly Usage
                                           Reporting Requirements (272
                                           Sunset Rulemaking).
3060-1122...............................  Preparation of Annual Reports    05/31/15
                                           to Congress for the Collection
                                           & Expenditure of Fees or
                                           Charges for Enhanced 911
                                           (E911) Services under the NET
                                           911 Improvement Act of 2008.
3060-1124...............................  Sec. 80.231....................  01/31/15
3060-1126...............................  Sec. 10.350....................  06/30/15
3060-1127...............................  First Responder Emergency        03/31/13
                                           Contact Information in the
                                           Universal Licensing System
                                           (ULS).
3060-1128...............................  National Broadband Plan Survey   03/31/13
                                           of Consumers.
3060-1129...............................  Broadband Speed Test and         02/28/13
                                           Unavailability Registry.
3060-1130...............................  National Broadband Plan Survey   02/28/13
                                           of Businesses.
3060-1131...............................  Implementation of the NET 911    12/31/12
                                           Improvement Act of 2008:
                                           Location Information from
                                           Owners and Controllers of 911
                                           and E911 Capabilities.
3060-1133...............................  FCC 308 and Secs. 73.3545 and    01/31/13
                                           73.3580.
3060-1135...............................  Rules Authorizing the Operation  08/31/13
                                           of Low Power Auxiliary
                                           Stations (including Wireless
                                           Microphones).
3060-1136...............................  Spectrum Dashboard Customer      08/31/13
                                           Feedback.
3060-1138...............................  Secs. 1.49 and 1.54............  04/30/13
3060-1139...............................  Residential Fixed Broadband      02/28/14
                                           Services Testing and
                                           Measurement.
3060-1140...............................  Requests for Waiver of Various   06/30/14
                                           Petitioners to Allow the
                                           Establishment of 700 MHz
                                           Interoperable Public Safety
                                           Wireless Broadband Networks,
                                           Order, PS Docket No. 06-229,
                                           DA 10-2342.
3060-1142...............................  Electronic Tariff Filing System  09/30/13
                                           (ETFS),WC Docket No. 10-141,
                                           FCC 10-127, NPRM.
3060-1143...............................  E-Rate Deployed Ubiquitously     04/30/14
                                           (EDU) 2011 Pilot Program.
3060-1144...............................  Consumer Survey................  02/28/14
3060-1145...............................  Structure and Practices of the   09/30/14
                                           Video Relay Service Program,
                                           CG Docket No. 10-51.
3060-1146...............................  Implementation of the 21st       Pending OMB review and approval.
                                           Century Communications and
                                           Video Accessibility Act of
                                           2010, Section 105, Relay
                                           Services for Deaf-Blind
                                           Individuals, CG Docket No. 10-
                                           210.
3060-1147...............................  Wireless E911 Phase II Location  05/31/15
                                           Accuracy Requirements.
3060-1148...............................  Sec. 79.3......................  Pending OMB review and approval.
3060-1150...............................  Structure and Practices of the   06/30/15
                                           Video Relay Service Program,
                                           Second Report and Order, CG
                                           Docket No. 10-51.
3060-1151...............................  Secs. 1.1420, 1.1422, and        01/31/15
                                           1.1424.
3060-1152...............................  Implementing a Nationwide,       06/30/14
                                           Broadband, Interoperable
                                           Public Safety Network in the
                                           700 MHz Band (Third Report and
                                           Order, PS Docket No. 06-229,
                                           FCC 11-6).
3060-1153...............................  Satellite Digital Radio Service  07/31/14
                                           (SDARS).
3060-1154...............................  Commercial Advertisement         06/30/15
                                           Loudness Mitigation (``CALM'')
                                           Act; Financial Hardship and
                                           General Waiver Requests.
3060-1155...............................  Secs. 15.713, 15.714, 15.715     02/28/15
                                           and 15.717.
3060-1157...............................  Formal Complaint Procedures,     09/30/14
                                           Preserving the Open Internet
                                           and Broadband Industry
                                           Practices, Report and Order,
                                           GN Docket No. 09-191 and WC
                                           Docket No. 07-52.
3060-1158...............................  Disclosure of Network            09/30/14
                                           Management Practices,
                                           Preserving the Open Internet
                                           and Broadband Industry
                                           Practices, Report and Order,
                                           GN Docket No. 09-191 and WC
                                           Docket No. 07-52.
3060-1159...............................  Part 25--Satellite               09/30/14
                                           Communications; and Part 27--
                                           Miscellaneous Wireless
                                           Communications Services in the
                                           2.3 GHz Band.
3060-1161...............................  Sec. 27.14(g)-(l)..............  10/31/14
3060-1162...............................  Closed Captioning of Video       Pending OMB review and approval.
                                           Programming Delivered Using
                                           Internet Protocol, and
                                           Apparatus Closed Caption
                                           Requirements.
3060-1165...............................  Sec. 74.605....................  03/31/15
3060-1166...............................  FCC 180........................  04/30/15
3060-1167...............................  Accessible Telecommunications    04/30/15
                                           and Advanced Communications
                                           Services and Equipment.

[[Page 573]]

 
3060-1168...............................  FCC 680........................  04/30/15
3060-1169...............................  Part 11--Emergency Alert System  11/30/12
                                           (EAS), Fifth Report and Order,
                                           FCC 12-7.
3060-1171...............................  Secs. 73.682(e) and 76.607(a),   06/30/15
                                           Commercial Advertisement
                                           Loudness Mitigation (``CALM'')
                                           Act.
----------------------------------------------------------------------------------------------------------------


[77 FR 48090, Aug. 13, 2012]

[[Page 575]]



List of CFR Sections Affected



All changes in this volume of the Code of Federal Regulations (CFR) that 
were made by documents published in the Federal Register since January 
1, 2008 are enumerated in the following list. Entries indicate the 
nature of the changes effected. Page numbers refer to Federal Register 
pages. The user should consult the entries for chapters, parts and 
subparts as well as sections for revisions.
For changes to this volume of the CFR prior to this listing, consult the 
annual edition of the monthly List of CFR Sections Affected (LSA). The 
LSA is available at www.fdsys.gov. For changes to this volume of the CFR 
prior to 2001, see the ``List of CFR Sections Affected, 1949-1963, 1964-
1972, 1973-1985, and 1986-2000'' published in 11 separate volumes. The 
``List of CFR Sections Affected 1986-2000'' is available at 
www.fdsys.gov.

                                  2008

47 CFR
                                                                   73 FR
                                                                    Page
Chapter I
43 Policy statement................................................37861
43.11 (a), (b) and (c) revised (eff. date pending).................37881
51 Clarification...................................................72732
52 Authority citation revised.......................................9481
    Policy statement...............................................60172
52.12 (a)(1)(i) introductory text revised...........................9481
52.16 (g) added.....................................................9481
52.17 (c) added.....................................................9481
52.21 (h) through (r) redesignated as (i) through (s); new (h) 
        added.......................................................9481
    (i) through (n) and (o) through (s) redesignated as (j) 
through (o) and (q) through (u); new (i), (p) and (v) added........41293
52.23 (h) added.....................................................9481
52.32 (e) added.....................................................9481
52.33 (b) revised...................................................9481
52.34 Added.........................................................9481
    Revised........................................................41294
54 Actions on petitions............................................29712
    Clarification..................................................72732
    Order..........................................................37882
54.201 Regulation at 72 FR 54217 confirmed.........................11837
54.410 (b) introductory text and (c) correctly revised.............42274
54.417 Regulation at 72 FR 54218 confirmed.........................11837
54.418 Added (OMB number pending)..................................15449
    Regulation at 73 FR 15449 confirmed............................16763
    Revised........................................................28732
54.601 (a)(3)(i) revised...........................................19438
54.619 Regulation at 72 FR 54218 confirmed.........................11837
54.706 Regulation at 72 FR 54218 confirmed.........................11837
61 Clarification...................................................72732
61.14 (b)(1) and (2)(i) revised.....................................9030
61.17 (b) amended...................................................9030
61.20 (b)(1) amended................................................9031
61.32 (b) amended...................................................9031
61.153 (b) amended..................................................9031
63.71 (a)(5)(i) and (ii) correctly amended.........................56741
64 Policy statement................1297, 6444, 9031, 23361, 38928, 60172
    Actions on petitions..............................6041, 63078, 64556
    Waiver.........................................................28057
    Clarification..................................................45354
64.601 (a) introductory text revised; (a)(12) removed; (a)(3) 
        through (9), (10), (11), (13) through (17), (18) and (19) 
        redesignated as new (a)(4) through (10), (14), (16), (19) 
        through (23), (26) and (27); new (a)(3), (11), (12), (13), 
        (15), (17), (18), (24) and (25) added......................41294
64.603 (a) and (b) amended.........................................21258

[[Page 576]]

64.604 (c)(5)(iii)(C) revised (OMB number pending)..................3202
    Regulation at 72 FR 43559 confirmed............................14941
    (a)(5), (c)(1), (2), (3), (5)(iii)(C), (E), (G), (6)(v)(A)(3), 
(G) and (7) notes removed..........................................21252
    (a)(4) revised; (c)(5)(ii), (iii)(F)(1), (4), (6)(i) and 
(iii)(B) amended...................................................21258
    Regulation at 73 FR 3202 stay of effectiveness.................21843
    Regulation at 73 FR 3202 confirmed.............................44170
64.605 Redesignated as 64.606; new 64.605 added....................21259
    Revised (OMB number pending in part)...........................41294
    Regulation at 73 FR 41294 confirmed in part....................70905
    (a)(1) and (b)(1) revised (OMB number pending).................79696
64.606 Regulation at 72 FR 43560 confirmed.........................14941
    (b) note removed...............................................21252
    Redesignated as 64.607; new 64.606 redesignated from 64.605....21259
64.607 Redesignated as 64.608; new 64.607 redesignated from 64.606
                                                                   21259
64.608 Redesignated as 64.609; new 64.608 redesignated from 64.607
                                                                   21259
64.609 Redesignated from 64.608 and amended........................21259
64.611 Added (OMB number pending in part)..........................41295
    Regulation at 73 FR 41295 confirmed in part....................70905
64.613 Added.......................................................41296
64.709 (d)(1) revised...............................................9031
64.1110 (a) and (b) amended........................................13149
64.1120 (b) and (c)(3) amended; (c)(3)(iii) revised (OMB number 
        pending in part)...........................................13149
    Regulation at 73 FR 13149 confirmed in part....................44170
64.1130 (e)(4) amended.............................................13149
64.1150 (d) amended................................................13149
64.1160 (c) amended................................................13149
64.1190 (c) and (d)(3)(ii)(B) amended..............................13150
64.1200 (c)(2) introductory text revised (OMB number pending)......40185
    Regulation at 73 FR 40185 confirmed............................67419
64.2500 Revised....................................................28057
64.2501 Revised....................................................28057
68.418 (b) revised.................................................25591
69 Clarification...................................................72732

                                  2009

47 CFR
                                                                   74 FR
                                                                    Page
Chapter I
52.21 (w) added....................................................31638
52.26 (a) and (c) revised..........................................31638
52.35 Added........................................................31638
54.418 (a) and (d) amended; (b)(2)(i) and (ii) revised..............8878
63.60 (a), (b), (c) and (d) redesignated as new (b), (c), (e) and 
        (g); new (a), (b)(3), (d) and (f) added (OMB number 
        pending in part)...........................................39563
64 OMB number.......................................................4345
    Actions on petitions...........................................20892
    Policy statement........................................37624, 47894
    Waiver.........................................................54913

                                  2010

47 CFR
                                                                   75 FR
                                                                    Page
Chapter I
52.26 (a) revised..................................................35315
52.35 Revised......................................................35315
52.36 Added (eff. date pending)....................................35315
54 Policy statement................................................25113
    Order..........................................................26137
54.5 Regulation at 71 FR 38796 confirmed...........................70149
54.301 (a)(2)(ii) revised..........................................17874
54.409 Regulation at 69 FR 34600 June 22, 2004 confirmed in part 
                                                                   70149
54.410 Regulation at 69 FR 34600 confirmed.........................70149
54.416 Regulation at 69 FR 34601 confirmed.........................70149
54.417 (a) correctly revised.......................................15352
54.501 (a) removed; (b), (c) and (d) redesignated as new (a), (b) 
        and (c); heading, new (a)(1), new (b)(1) and new (c)(1) 
        revised....................................................75411
54.502 Revised.....................................................75411
54.503 Revised.....................................................17589
    Revised........................................................75412
54.504 (b)(2)(iv) revised..........................................17589
    Revised........................................................75413

[[Page 577]]

54.505 (b)(4) revised..............................................75414
54.506 Removed.....................................................75414
54.507 (g) introductory text, (1) introductory text, (i), (ii) and 
        (iii) revised..............................................17589
    (a), (g) introductory text and (1)(i) revised..................75414
    (g) introductory text, (1) introductory text, (i), (ii) and 
(iii) revised......................................................17589
54.508 Revised.....................................................75415
54.511 (a), (c)(1) introductory text, (ii) and (d)(1) revised; 
        (c)(3) removed.............................................75415
54.513 Regulation at 69 FR 6191 confirmed..........................70149
    (a) revised; (b) and (c) redesignated as (c) and (d); new (b) 
added..............................................................75415
54.514 Regulation at 68 FR 36942 confirmed in part.................70149
54.517 (b) revised.................................................17590
    Removed........................................................75415
    (b) revised....................................................17590
54.518 Revised.....................................................75415
54.519 (a) introductory text, (6) and (b) revised..................75415
54.522 Removed.....................................................75416
54.609 Regulation at 68 FR 74502 confirmed in part.................70149
    Regulation at 70 FR 6373 confirmed.............................70149
54.621 Regulation at 68 FR 74503 confirmed.........................70149
54.703 Regulation at 63 FR 70573 confirmed in part.................70149
54.708 Regulation at 71 FR 38797 confirmed.........................70149
54.712 Regulation at 71 FR 38797 confirmed.........................70149
63.60 Regulation at 74 FR 39563 confirmed in part..................13235
64 Waiver..........................................................54040
64.604 (c)(5)(iii)(I) revised; interim (OMB number pending)........39860
64.605 Regulation at 73 FR 79696 confirmed.........................29914

                                  2011

47 CFR
                                                                   76 FR
                                                                    Page
Chapter I
43.11 Regulation at 73 FR 37881 eff. date confirmed................68641
43.53 Removed......................................................42573
43.61 (a) introductory text revised; (b) and (c) removed...........42573
43.82 (a) revised..................................................42573
51 Authority citation revised......................................73854
    Policy statement...............................................81562
51.700 Added.......................................................73854
51.701 (a), (b) introductory text, (c), (d) and (e) revised; 
        (b)(3) added...............................................73855
51.703 Revised.....................................................73855
51.705 Revised.....................................................73855
51.707 Removed.....................................................73856
51.709 Revised.....................................................73856
51.711 (a) introductory text, (1) and (b) revised..................73856
51.713 Revised.....................................................73856
51.715 (a) introductory text, (1), (b) introductory text and (2) 
        revised; (d) amended.......................................73856
51.717 Removed.....................................................73856
51.901--51.919 (Subpart J) Added...................................73856
51.907 OMB number pending in part..................................73856
51.909 OMB number pending in part..................................73856
51.911 OMB number pending in part..................................73856
51.915 OMB number pending in part..................................73856
51.917 OMB number pending in part..................................73856
51.919 OMB number pending..........................................73856
52.33 Regulation at 63 FR 35161 confirmed..........................61279
    Regulation at 67 FR 40620 confirmed............................61279
54 Order............................................................4827
    Authority citation revised.....................................73869
    Policy statement...............................................81562
54.5 Amended.......................................................73869
54.7 Revised.......................................................73869
54.101 Revised.....................................................73870
54.202 Revised.....................................................73870
54.301 (a)(1) revised; (b) and (e)(1) amended......................73870
54.302 Added.......................................................73870
54.303 Removed.....................................................73871
54.304 Added (OMB number pending)..................................73871
54.305 (a) and (b) amended.........................................73871
54.307 (e) added...................................................73871
54.309 (d) added...................................................73872
54.311 Removed.....................................................73872
54.312 Added (OMB number pending in part)..........................73872

[[Page 578]]

54.313 Revised (OMB number pending in part)........................73873
54.314 Revised (OMB number pending)................................73875
54.316 Removed.....................................................73876
54.318 Added.......................................................73876
54.320 Added (OMB number pending in part)..........................73876
54.401 (a)(1) revised..............................................38046
54.405 (a) revised; (e) added......................................38046
54.500 (c) and (k) revised; eff. 10-13-11..........................56302
54.501 Heading and (a)(1) revised; eff. 10-13-11...................56302
54.503 (c)(2)(i) revised; eff. 10-13-11............................56302
54.504 (a)(1)(i) revised; eff. 10-13-11............................56303
54.507 (g)(1)(i) revised; eff. 10-13-11............................56303
54.520 (a)(1), (4), (c)(1)(i), (iii)(B), (2)(i), (iii)(B) and 
        (3)(i)(B) revised; (c)(4), (5) and (h) added; eff. 10-13-
        11.........................................................56303
54.601 (a)(3)(i) revised; interim..................................37282
54.702 (a), (b), (c) and (h) revised...............................73876
54.709 (b) amended.................................................73876
54.715 (c) revised.................................................73877
54.801 (f) added...................................................73877
54.901 (b)(4), (c) and (d) added...................................73877
54.1001--54.1010 (Subpart L) Added.................................73877
54.1003 OMB number pending.........................................73877
54.1004 OMB number pending in part.................................73877
54.1005 OMB number pending in part.................................73877
54.1006 OMB number pending in part.................................73877
54.1007 OMB number pending in part.................................73877
54.1008 OMB number pending in part.................................73877
54.1009 OMB number pending in part.................................73877
54.1010 OMB number pending in part.................................73877
61 Policy statement................................................81562
61.3 (t) through (y) redesignated as (u) through (z); new (t) 
        added (OMB number pending).................................43210
    (aa) through (zz) correctly redesignated as (bb) through 
(aaa); old (z) correctly reinstated as (aa); CFR correction........60378
    Regulation at 76 FR 43210 confirmed............................61956
    (bbb) added (OMB number pending)...............................73880
    Regulation at 76 FR 73880 confirmed............................76623
61.13 (a) and (b) revised (OMB number pending).....................43210
    Regulation at 76 FR 43210 confirmed............................61956
61.14 (b) and (e) revised (OMB number pending).....................43210
    Regulation at 76 FR 43210 confirmed............................61956
61.15 Revised (OMB number pending).................................43210
    Regulation at 76 FR 43210 confirmed............................61956
61.16 Revised (OMB number pending).................................43211
    Regulation at 76 FR 43211 confirmed............................61956
61.17 Revised (OMB number pending).................................43211
    Regulation at 76 FR 43211 confirmed............................61956
61.20 Revised (OMB number pending).................................43211
    Regulation at 76 FR 43211 confirmed............................61956
61.21 Removed (OMB number pending).................................43211
    Regulation at 76 FR 43211 confirmed............................61956
61.22 Removed (OMB number pending).................................43211
    Regulation at 76 FR 43211 confirmed............................61956
61.23 Removed (OMB number pending).................................43211
    Regulation at 76 FR 43211 confirmed............................61956
61.26 Revised......................................................73881
    Regulation at 76 FR 73881 confirmed............................76623
61.32 Removed (OMB number pending).................................43211
    Regulation at 76 FR 43211 confirmed............................61956
61.33 Removed (OMB number pending).................................43211
    Regulation at 76 FR 43211 confirmed............................61956
61.38 Revised (OMB number pending).................................43211

[[Page 579]]

    Regulation at 69 FR 25336 confirmed............................61279
    Regulation at 76 FR 43211 confirmed............................61956
61.39 Revised (OMB number pending).................................43212
    Regulation at 76 FR 43212 confirmed............................61956
    (a) revised; (g) added.........................................73882
    Regulation at 76 FR 73882 confirmed............................76623
61.40 (a) introductory text revised (OMB number pending)...........43213
    Regulation at 76 FR 43213 confirmed............................61956
61.41 (a)(2) revised (OMB number pending)..........................43213
    Regulation at 69 FR 25336 confirmed............................61279
    Regulation at 76 FR 43213 confirmed............................61956
61.42 (d) introductory text, (4), (e)(1) introductory text and (f) 
        revised (OMB number pending)...............................43214
    Regulation at 76 FR 43214 confirmed............................61956
61.43 Revised (OMB number pending).................................43214
    Regulation at 76 FR 43214 confirmed............................61956
61.45 (a), (b)(1)(i) introductory text and (d)(2) revised (OMB 
        number pending)............................................43214
    Regulation at 76 FR 43214 confirmed............................61956
61.46 (a) introductory text revised (OMB number pending)...........43214
    Regulation at 76 FR 43214 confirmed............................61956
61.47 (f), (i)(2) and (5) revised (OMB number pending).............43214
    Regulation at 76 FR 43214 confirmed............................61956
61.48 (i)(2), (3) introductory text, (4) and (l)(2) revised (OMB 
        number pending)............................................43214
    Regulation at 76 FR 43214 confirmed............................61956
61.49 (f)(2), (3), (4), (g) introductory text, (2), (h), (k) and 
        (l) revised (OMB number pending)...........................43215
    Regulation at 76 FR 43215 confirmed............................61956
61.51--61.59 (Subpart F) Designated as Subpart F; heading added 
        (OMB number pending).......................................43215
    Regulation at 76 FR 43215 confirmed............................61956
61.51 Added (OMB number pending)...................................43215
    Regulation at 76 FR 43215 confirmed............................61956
61.51--61.59 (Subpart F) Regulation at 76 FR 43215 confirmed.......61956
61.52 (a) removed; (b) and (c) redesignated as new (a) and (b); 
        new (a) introductory text and (b) revised (OMB number 
        pending)...................................................43215
    Regulation at 76 FR 43215 confirmed............................61956
61.55 (a) revised (OMB number pending).............................43216
    Regulation at 76 FR 43216 confirmed............................61956
61.58 (a)(2)(ii), (d) and (e)(1) introductory text revised; (f) 
        added (OMB number pending).................................43216
    Regulation at 76 FR 43216 confirmed............................61956
61.59 (b) and (c) revised (OMB number pending).....................43216
    Regulation at 76 FR 43216 confirmed............................61956
61.66--61.87 (Subpart F) Redesignated as Subpart G (OMB number 
        pending)...................................................43215
    Regulation at 76 FR 43215 confirmed............................61956
61.66 Revised (OMB number pending).................................43216
    Regulation at 76 FR 43216 confirmed............................61956
61.68 (a) revised (OMB number pending).............................43216
    Regulation at 76 FR 43216 confirmed............................61956
61.83 Revised (OMB number pending).................................43216
    Regulation at 76 FR 43216 confirmed............................61956
61.86 Revised (OMB number pending).................................43216
    Regulation at 76 FR 43216 confirmed............................61956

[[Page 580]]

61.87 (a) introductory text, (1)(i), (ii), (3) and (c) revised 
        (OMB number pending).......................................43216
    Regulation at 76 FR 43216 confirmed............................61956
61.131--61.136 (Subpart G) Redesignated as Subpart H (OMB number 
        pending)...................................................43215
    Regulation at 76 FR 43215 confirmed............................61956
61.132 Revised (OMB number pending)................................43216
    Regulation at 76 FR 43216 confirmed............................61956
61.134 Revised(OMB number pending).................................43216
    Regulation at 76 FR 43216 confirmed............................61956
61.151--61.153 (Subpart H) Removed(OMB number pending).............43215
    Regulation at 76 FR 43215 confirmed............................61956
61.191 Revised (OMB number pending)................................43217
    Regulation at 76 FR 43216 confirmed............................61956
63.19 Regulation at 72 FR 54366 confirmed..........................13295
63.23 (e) removed; (f) redesignated as new (e).....................42573
63.24 Regulation at 72 FR 54366 confirmed in part..................13295
64 Authority citation revised...24400, 26647, 43205, 65969, 67073, 73882
    Actions on petitions...........................................59557
    Policy statement...............................................81562
    Regulation at 76 FR 43205 confirmed............................61956
64.601--64.613 (Subpart F) Authority citation revised......24400, 26647, 
                                                            65969, 67073
64.601 (a)(27) redesignated as (a)(28); new (a)(27) added..........24400
    (a)(10) revised; (a)(15) through (28) redesignated as (a)(16) 
through (29); new (a)(15) added....................................65969
64.604 Regulation at 75 FR 39860 confirmed..........................8659
    (a)(6), (7), (b)(4)(iii), (c)(5)(iii)(L), (M), and (N) added; 
(c)(5)(iii)(C) revised (OMB number pending in part)................24400
    (c)(5)(iii)(L)(3) corrected....................................30842
    (b)(4)(iv) added; (c)(5)(iii)(F) revised.......................47474
    (c)(5)(iii)(J) removed.........................................63563
    (c)(5)(iii)(A) and (B) revised; (c)(5)(iii)(D) removed; 
(c)(5)(iii)(C) redesignated as new (c)(5)(iii)(D); new 
(c)(5)(iii)(C) added...............................................65969
    Regulation at 76 FR 24400 confirmed in part....................59269
64.606 (g) revised.................................................24402
    Heading, (a)(2), (b)(2), (c)(2), (e)(2), (f)(2) and (g) 
revised; (a)(3) and (h) added (OMB number pending in part).........47474
    (a)(2)(v) and (g) revised; interim (OMB number pending in 
part)..............................................................47477
    (a)(2)(ii)(A)(4), (5) and (E) revised; (a)(2)(ii)(A)(6), (7) 
and (8) added......................................................67073
    Regulation at 76 FR 47477 eff. date confirmed in part; interim
                                                                   68116
    Regulation at 76 FR 47474 eff. date confirmed in part..........68328
    Regulation at 76 FR 67073 confirmed............................68642
64.610 Added (OMB number pending in part)..........................26647
    (c)(2)(ii) corrected...........................................31261
    Regulation at 76 FR 26647 confirmed............................58412
64.611 (e) and (f) redesignated as (f) and (g); new (g)(1)(iii) 
        and (iv) amended; new (e), (g)(1)(v) and (vi) added; eff. 
        in part 10-27-11 (OMB number pending in part)..............59557
    Regulation at 76 FR 59557 confirmed in part....................72124
64.613 (a)(1) and (2) revised; (a)(3) redesignated as (a)(4); new 
        (a)(3) added; eff. in part 10-27-11 (OMB number pending in 
        part)......................................................59557
    Regulation at 76 FR 59557 confirmed in part....................72124
64.709 (d)(1) and (2) revised......................................43217
    Regulation at 76 FR 43217 confirmed in part....................61956
64.1600 (c), (d), (e) and (f) redesignated as (e), (f), (i) and 
        (j); new (c), (d), (g) and (h) added.......................43205
    (f) through (j) redesignated as (g) through (k); new (f) added
                                                                   73882

[[Page 581]]

64.1601 (a) revised................................................73882
64.1604 Redesignated as 64.1605; new 64.1604 added.................43205
64.1605 Redesignated from 64.1604..................................43205
64.2401 Note removed...............................................63563
64.5001 Regulation at 71 FR 43673 confirmed........................61279
69 Policy statement................................................81562
69.1 (d) added.....................................................73882
69.3 (e)(6) and (9) revised; (e)(12) added (OMB number pending in 
        part)......................................................73882
    Regulation at 76 FR 73882 confirmed............................76623
69.123 Regulation at 69 FR 25336 confirmed.........................61279

                                  2012

47 CFR
                                                                   77 FR
                                                                    Page
Chapter I
51 Actions on petitions.............................................3635
    Technical correction...........................................30903
51.907 Regulation at 76 FR 73856 confirmed in part.................35623
    (b)(2)(v), (vi) and (c)(1) revised; (b)(3) and (c)(4) added; 
(c)(3) removed.....................................................48452
51.909 Regulation at 76 FR 73856 confirmed in part.................35623
    (a)(3), (b)(2)(v), (3) and (c) revised; (b)(4) added...........48452
51.911 Regulation at 76 FR 73856 confirmed in part.................35623
    (b) introductory text and (6) revised; (b)(7) added............48453
51.913 (a) revised.................................................31536
    Regulation at 77 FR 31536 eff. date corrected..................36406
51.915 Regulation at 76 FR 73856 confirmed in part.................35623
    (d)(1)(i)(C)(2)(i), (ii)(C)(2)(i), (iii)(E)(2)(i), 
(iv)(E)(2)(i), (v)(E)(2)(i), (vi)(F)(2)(i) and (vii)(G)(2)(i) 
revised............................................................48453
51.917 (d)(1)(i), (ii) and (iii) revised...........................14302
    Regulation at 76 FR 73856 confirmed in part....................35623
54 Actions on petitions...............................3635, 23630, 48453
Authority citation revised.........................................71712
    Order...................................................30411, 42185
    Technical correction...........................................30903
    Policy statement...............................................39435
54.5 Amended.........................................12966, 20553, 30913
54.101 (a) revised...........................................1640, 12966
54.201 (a)(1) and (h) revised......................................12966
54.202 Revised (OMB number pending in part)........................12966
    Regulation at 77 FR 12966 confirmed in part.............25609, 71712
54.209 Removed.....................................................12966
54.301 (f) removed.................................................14302
54.304 Regulation at 76 FR 73871 confirmed.........................35623
54.307 (e)(1)(ii) revised..........................................14302
    (e)(3)(iii), (v) introductory text, (5) and (7) revised; 
(e)(3)(iv)(A) removed; (e)(3)(iv)(B) through (F) redesignated as 
new (e)(3)(iv)(A) through (E)......................................30913
    (e)(5) revised.................................................52618
54.312 Regulation at 76 FR 73872 confirmed in part.................26987
    (b)(3) revised.................................................31536
    Regulation at 77 FR 31536 eff. date corrected..................36406
54.313 (a)(9) introductory text, and (f)(2) revised (OMB number 
        pending)...................................................14302
    Regulation at 76 FR 73873 confirmed in part....................26987
    (a)(10), (11), (c)(1) through (4), (d), (e)(3) introductory 
text, (f)(1) introductory text, (h) and (j) revised (OMB number 
pending in part)...................................................30914
54.314 Regulation at 76 FR 73875 confirmed.........................26987
54.315 Removed.....................................................14302
54.318 (d) revised.................................................14302
    (a), (b), (c) and (f) revised; (h) and (i) added...............30914
54.320 Regulation at 73876 confirmed in part.......................26987
54.400 Revised.....................................................12966
54.401 Revised (OMB number pending in part)........................12967
    Regulation at 77 FR 12967 eff. date corrected in part (OMB 
number pending in part)............................................19125
    Regulation at 77 FR 12967 confirmed in part.............25609, 71712
54.403 Revised (OMB number pending)................................12967
    Regulation at 77 FR 12967 confirmed.....................25609, 71712
54.404 Added.......................................................12968
54.405 Revised.....................................................12969

[[Page 582]]

    Regulation at 77 FR 12969 eff. date corrected in part (OMB 
number pending in part)............................................19125
    Regulation at 77 FR 12969 confirmed in part....................25609
54.407 Revised (OMB number pending)................................12970
    Regulation at 77 FR 12970 confirmed.....................25609, 71712
    (d) corrected..................................................38534
54.409 Revised.....................................................12970
    (a)(3) correctly revised.......................................38534
54.410 Revised (OMB number pending)................................12970
    Regulation at 77 FR 12970 eff. date corrected..................19125
    (d)(3)(iii) through (viii) correctly redesignated as 
(d)(3)(iv) through (ix); second (d)(3)(ii) correctly redesignated 
as new (d)(3)(iii).................................................19125
    Regulation at 77 FR 12970 confirmed in part....................25609
    Regulation at 77 FR 12970 confirmed............................71712
    (c)(1)(iii) correctly revised; second (d)(3)(ii) through 
(viii) correctly designated as (d)(3)(iii) through (ix)............38534
54.411 Removed.....................................................12972
54.412 Added.......................................................12972
    (a) and (b) correctly revised..................................38534
54.413 Revised.....................................................12973
54.414 Added.......................................................12973
54.415 Removed.....................................................12973
54.416 Revised (OMB number pending)................................12973
    Regulation at 77 FR 12973 confirmed.....................25609, 71712
    (a)(3) correctly removed.......................................38534
54.417 Revised (OMB number pending)................................12974
    Regulation at 77 FR 12974 confirmed.....................25609, 71712
    (c) correctly revised..........................................38534
54.419 Added.......................................................12974
54.420 Added (OMB number pending)..................................12974
    Regulation at 77 FR 12974 confirmed in part....................25609
    Regulation at 77 FR 12970 confirmed............................71712
    (a)(5) correctly revised.......................................38534
54.422 Added (OMB number pending)..................................12974
    Regulation at 77 FR 12974 eff. date corrected in part (OMB 
number pending)....................................................19125
    Regulation at 77 FR 12974 confirmed.....................25609, 71712
    Correctly revised..............................................38534
54.717 Amended.....................................................71712
54.903 (a)(2) revised..............................................14303
54.1003 (b) revised (OMB number pending)...........................14303
    Regulation at 76 FR 73877 confirmed............................33097
54.1004 Regulation at 76 FR 73877 confirmed in part................33097
54.1005 Regulation at 76 FR 73877 confirmed in part................33097
54.1006 Regulation at 76 FR 73877 confirmed in part................33097
54.1007 Regulation at 76 FR 73877 confirmed in part................33097
54.1008 Regulation at 76 FR 73877 confirmed in part................33097
54.1009 (a) introductory text revised..............................30915
61 Actions on petitions.............................................3635
61.3 Regulation at 76 FR 73880 confirmed...........................37614
61.26 (f) revised..................................................20553
64 Technical correction............................................18106
    Actions on petitions...............................1039, 3635, 75894
    Waiver.........................................................20553
    Authority citation revised.......................30919, 34246, 71137
    Policy statement...............................................43538
64.604 (c)(5)(iii)(D)(2) correctly amended.........................60630
64.606 (a)(2)(v) added.............................................33662
64.610 Regulation at 76 FR 26647 confirmed in part.................42187
64.1200 (a), (b), (c) and (f) revised (OMB number pending in part)
                                                                   34246
    Regulation at 77 FR 34246 confirmed in part....................63240
    Regulation at 77 FR 63240 eff. dates corrected.................66935
64.1202 Added (OMB number pending).................................71137
64.2400--64.2401 (Subpart Y) Heading revised.......................30919
64.2400 (b) revised................................................30919
64.2401 (a)(3) redesignated as (a)(4); new (a)(3) and (f) added 
        (OMB number pending in part)...............................30919

[[Page 583]]

    Regulation at 77 FR 30919 confirmed in part....................65320
    Regulation at 77 FR 30919 eff. dates corrected.................71353
    (f) correctly revised (OMB number pending).....................71354
69 Actions on petitions.............................................3635
69.3 Regulation at 76 FR 73882 confirmed in part...................37614

                                  2013

  (Regulations published from January 1, 2013, through October 1, 2013)

47 CFR
                                                                   78 FR
                                                                    Page
Chapter I
43 Authority citation revised......................................15623
43.01 (a), (b) and (d) revised (OMB numbers pending)...............49149
43.11 (a), (b) and (c) revised (OMB numbers pending)...............49149
43.51 (a)(1) introductory text and (d) revised; (b)(1) and (2) 
        amended; (b)(3), (e) and (f) removed (OMB number pending 
        in part)...................................................11112
43.61 Removed (OMB number pending).................................15623
43.62 Added (OMB number pending)...................................15623
43.82 Removed (OMB number pending).................................15623
51 Order...........................................................39617
51.217 Regulation at 64 FR 51911 confirmed.........................52710
51.319 (d) removed; (e), (f) and (g) redesignated as new (d), (e) 
        and (f); (a) and new (d) revised............................5746
51.909 (a)(4), (5) and (6) added; (a)(3) and (c)(1) revised........26267
51.915 (b)(13), (d)(1)(iii)(F), (iv)(F), (v)(F), (vi)(G), 
        (vii)(H), (viii) and (f)(6) revised........................26268
51.917 (b)(5), (6), (d)(1)(iii)(D) and (f)(3) revised..............26268
52 Actions on petitions............................................36679
52.19 Regulation at 67 FR 6434 confirmed in part...................52710
52.36 Regulation at 75 FR 35315 confirmed..........................52710
53 Order...........................................................39617
53.203 Regulation at 62 FR 2968 confirmed..........................52710
54 Authority citation revised...............................38232, 48624
    Policy statement....................5750, 16808, 20796, 26269, 26705
    Regulation at 78 FR 5750 confirmed.............................10100
    Order (OMB number pending)..............................29063, 32991
    Order..........................................................42699
    Regulation at 78 FR 32991 eff. date confirmed..................44893
54.5 Amended.......................................................13982
54.304 (c)(1) and (d)(1) revised...................................26268
54.312 (b) introductory text amended; (c) added (OMB number 
        pending in part)...........................................38233
    Regulation at 78 FR 38233 eff. date confirmed in part..........44893
    (b)(3) and (c)(4) revised......................................48624
54.313 (f)(2) revised (OMB number pending in part)..................3843
    (a) introductory text and (11) revised (OMB number pending)....22201
    (a)(9) introductory text revised...............................29656
    (b) revised (OMB number pending)...............................38233
    Regulation at 78 FR 38233 eff. date confirmed..................44893
54.313 Regulation at 76 FR 73873 eff. date confirmed...............47211
    Regulation at 77 FR 30914 eff. date confirmed..................47211
    Regulation at 78 FR 3843 eff. date confirmed...................47211
    Regulation at 78 FR 22201 eff. date confirmed..................47211
54.410 (a) revised.................................................40970
54.600 Undesignated center heading and section added...............13982
54.601 Revised (OMB number pending in part)........................13982
    Regulation at 78 FR 13982 eff. date confirmed in part..........54967
54.602 Added.......................................................13982
54.603 Undesignated center heading added; heading, (a), (b)(1) 
        introductory text, (i) and (ii) revised; (b)(1)(iii) 
        removed (OMB number pending in part).......................13983
    Regulation at 78 FR 13983 eff. date confirmed in part..........54967

[[Page 584]]

54.604 (a), (b) and (c) redesignated as (c), (d) and (e); Heading 
        and new (c) introductory text revised; new (a) and new (b) 
        added......................................................13983
54.605 (a) revised.................................................13983
54.609 (a) introductory text, (1)(iv), (3), (d)(1), (2) and (e)(1) 
        revised (OMB number pending in part).......................13983
    Regulation at 78 FR 13983 eff. date confirmed in part..........54967
54.611 Removed.....................................................13984
54.613 (b) removed.................................................13984
54.615 (b), (c) introductory text and (2) revised; (c)(3) removed 
        (OMB number pending in part)...............................13984
    Regulation at 78 FR 13984 eff. date confirmed in part..........54967
54.617 Removed.....................................................13984
54.619 (a)(1) and (d) revised (OMB number pending in part).........13984
    Regulation at 78 FR 13984 eff. date confirmed..................54967
54.621 Removed.....................................................13984
54.623 Revised (OMB number pending in part)........................13984
    Regulation at 78 FR 13984 eff. date confirmed in part..........54967
54.625 Revised.....................................................13984
54.630 Undesignated center heading and section added...............13984
54.631 Added (OMB number pending in part)..........................13985
    Regulation at 78 FR 13985 eff. date confirmed in part..........54967
54.632 Added (OMB number pending)..................................13985
    Regulation at 78 FR 13985 eff. date confirmed..................54967
54.633 Added (OMB number pending in part)..........................13985
    Regulation at 78 FR 13985 eff. date confirmed in part..........54967
54.634 Added (OMB number pending in part)..........................13986
    Regulation at 78 FR 13986 eff. date confirmed in part..........54967
54.635 Added.......................................................13986
54.636 Added (OMB number pending)..................................13987
    Regulation at 78 FR 13987 eff. date confirmed..................54967
54.637 Added.......................................................13987
54.638 Added.......................................................13987
54.639 Added (OMB number pending in part)..........................13987
    Regulation at 78 FR 13987 eff. date confirmed in part..........54967
54.640 Added (OMB number pending in part)..........................13988
    Regulation at 78 FR 13988 eff. date confirmed..................38606
54.642 Added (OMB number pending)..................................13988
    Regulation at 78 FR 13988 eff. date confirmed..................54967
54.643 Added (OMB number pending)..................................13990
    Regulation at 78 FR 13990 eff. date confirmed..................54967
54.644 Added.......................................................13991
54.645 Added (OMB number pending)..................................13991
    Regulation at 78 FR 13991 eff. date confirmed..................54967
54.646 Added (OMB number pending)..................................13991
    Regulation at 78 FR 13991 eff. date confirmed..................54967
54.647 Added (OMB number pending)..................................13991
    Regulation at 78 FR 13991 eff. date confirmed..................54967
54.648 Added (OMB number pending in part)..........................13991
    Regulation at 78 FR 13991 eff. date confirmed in part..........54967
54.649 Added.......................................................13992
54.671 Undesignated center heading and section added...............13992
54.672 Added.......................................................13992
54.675 Added (OMB number pending in part)..........................13992
    Regulation at 78 FR 13992 eff. date confirmed in part..........54967
54.679 Added (OMB number pending)..................................13992
    Regulation at 78 FR 13992 eff. date confirmed..................38606
54.680 Added.......................................................13993
54.901 (c) introductory text and (2) revised.......................26269
54.1008 Regulation at 76 FR 73877 eff. date confirmed in part......45071
54.1009 Regulation at 76 FR 73877 eff. date confirmed in part......45071
54.1010 Regulation at 76 FR 73877 eff. date confirmed in part......45071
63 Order...........................................................39617

[[Page 585]]

63.10 (c)(2) and (4) revised (OMB number pending)..................15623
63.14 (c) revised; (c) note removed................................11112
63.17 (b) introductory text revised................................11112
63.18 (l) removed..................................................15623
63.21 (d) revised (OMB number pending).............................15624
63.22 (f) redesignated as (h); new (f), (g), Note 1 and Note 2 
        added......................................................11112
    (e) revised (OMB number pending)...............................15624
63.62 Regulation at 61 FR 15733 confirmed in part..................52710
64 Order...........................................................39617
64.601 (a)(2) through (29) revised; (a)(30) through (45) added.....40605
64.604 (c)(5)(iii)(E) revised.......................................8031
    (c)(8), (9) and (10) added; interim (OMB number pending in 
part)...............................................................8038
    Regulation at 77 FR 8038 confirmed 3-7-13 through 9-3-13.......14701
    (b)(2)(iii), (4)(iv) and (c)(5)(iii)(N)(1)(iii) revised; 
(c)(11), (12), (13) and (d) added..................................40607
    (a)(1)(v) revised; (a)(1)(viii) and (b)(7) added eff. 10-15-13
                                                                   49696
    (c)(8), (9) and (10) revised; (c)(11) added (OMB number 
pending in part)...................................................53691
64.605 (b)(4)(ii) revised..........................................40608
64.606 (a)(4), (g)(3) and (4) added................................40608
    (a)(2)(ii)(F) added (OMB number pending).......................53694
64.611 (a)(3), (4) and (h) added; (f) revised......................40608
64.615 Added.......................................................40609
64.617 Added.......................................................40609
64.619 Added.......................................................40609
64.621 Added.......................................................40609
64.623 Added.......................................................40609
64.630 Added.......................................................40609
64.631 Added.......................................................40609
64.632 Added.......................................................40609
64.633 Added.......................................................40609
64.634 Added.......................................................40609
64.635 Added.......................................................40609
64.636 Added.......................................................40609
64.1001--64.1002 (Subpart J) Removed...............................11113
64.1202 Regulation at 77 FR 71137 confirmed........................18246
64.1310 Regulation at 70 FR 722 confirmed..........................52710
64.5101--64.5111 (Subpart EE) Added................................40613
69 Policy statement.................................................2572
    Technical correction...........................................24683
69.2 Removed........................................................5750
69.306 (d)(2) revised; (d)(3) added................................26269
69.415 (c)(4) revised...............................................5750
    (b) and (c) introductory text revised; (d) added...............26269
69.502 (c) removed; (d) and (e) redesignated as new (c) and (d).....5750


                                  [all]