[Federal Register Volume 66, Number 182 (Wednesday, September 19, 2001)]
[Notices]
[Pages 48259-48261]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-23269]


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FEDERAL COMMUNICATIONS COMMISSION

[CC Docket No. 96-45; DA 01-2107]


The Federal-State Joint Board on Universal Service

AGENCY: Federal Communications Commission.

ACTION: Notice; comments requested.

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SUMMARY: December 8, 2000, the Common Carrier Bureau (Bureau) released 
a document updating line count input data used in the high-cost 
universal service model for determining support amounts for 2001. 
Consistent with the Bureau and Commission precedent, in this document, 
the Bureau invites comment on updating line counts and other limited 
information used in the model for calculating high-cost universal 
service support for non-rural carriers for 2002.

DATES: Comments are due on or before October 4, 2001. Reply comments 
are due on or before October 10, 2001.

ADDRESSES: See Supplementary Information section for where and how to 
file comments.

FOR FURTHER INFORMATION CONTACT: Katie King or Thomas Buckley, 
Attorneys, Common Carrier Bureau, Accounting Policy Division, (202) 
418-7400, TTY: (202) 418-0484.

SUPPLEMENTARY INFORMATION: On October 21, 1999, the Commission

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adopted two orders completing implementation plans for a new high-cost 
universal service support mechanism for non-rural carriers. The 
mechanism provides support based on the forward-looking economic cost 
of providing services eligible for support, as determined by the 
Commission's universal service cost model. The Commission also 
emphasized the importance of updating the inputs used in the cost model 
as technology and other conditions change. On December 8, 2000, the 
Bureau released an order updating line count input data used in the 
model for determining support amounts for 2001. Consistent with the 
Bureau and Commission precedent, the Bureau seeks comment in this 
Public Notice on how line count and other discrete input values should 
be updated for purposes of determining support for 2002.
    Line Counts. Line counts are used for two general purposes in the 
high-cost support mechanism for non-rural carriers. First, line counts 
are used in the Commission's cost model to estimate the forward-looking 
costs of providing supported services for businesses and households in 
a geographic area. Second, line counts are used to calculate support 
based on those costs and target that support to high-cost areas. In the 
Line Counts Update Order, 65 FR 81759, December 27, 2000, the Bureau 
updated line counts by using year-end 1999 line counts filed July 31, 
2000, as input values for estimating average forward-looking costs for 
the year 2001. Support amounts for 2001 were also adjusted every 
quarter using wire center line count data reported by the carriers on a 
quarterly basis.
    In order to estimate the cost of providing service for all 
businesses and households within a geographic area, line counts also 
need to be allocated to specific classes of service in the cost model. 
In the Line Count Data Request, DA 99-1406, (not published in the 
Federal Register) the Bureau requested, inter alia, that non-rural 
carriers submit year-end 1998 wire center line count data allocated to 
the classes of service used in the model. For purposes of calculating 
forward-looking costs and determining support for 2001, in the Line 
Counts Update Order, 65 FR 81759, December 27, 2000, the Bureau 
concluded that line counts should be allocated to the classes of 
service used in the model based on the line count data filed pursuant 
to the Line Count Data Request, DA 99-1406, (not published in the 
Federal Register). Moreover, because line counts reported by non-rural 
carriers include only switched lines, the Bureau recognized in the Line 
Counts Update Order, 65 FR 81759, December 27, 2000, that it could not 
divide year-end line counts into the Line Count Data Request, DA 99-
1406, (not published in the Federal Register), to determine the growth 
rate of special lines. As a result, the Bureau divided the 1999 ARMIS 
special access lines among wire centers in the same proportion as the 
special lines from the Line Count Data Request, DA 99-1406, (not 
published in the Federal Register), to estimate line count growth.
    The Bureau seeks comment on updating line count data in the 
universal service cost model consistent with the updated framework 
adopted in the Line Counts Update Order, 65 FR 81759, December 27, 
2000. The Bureau specifically seeks comment on whether to update line 
count input values with year-end line counts filed July 31, 2001, in 
order to estimate average forward-looking costs for 2002. The Bureau 
also seeks comment on whether to adjust support amounts each quarter 
using wire center line count data reported by carriers each quarter. In 
addition, the Bureau seeks comment on whether to apply the methods 
adopted in the Line Counts Update Order, 65 FR 81759, December 27, 
2000, for allocating line counts to classes of service in order to 
calculate support in 2002. In particular, the Bureau seeks comment on 
whether line counts should be allocated to the classes of service used 
in the model based on the line count data filed pursuant to the Line 
Count Data Request, DA 99-1406, (not published in the Federal 
Register). Because line counts reported by non-rural carriers include 
only switched lines, the Bureau also seeks comment on whether to divide 
the 2000 ARMIS special lines access lines among wire centers in the 
same proportion as the special lines from the Line Count Data Request, 
DA 99-1406, (not published in the Federal Register), to estimate 
special line count growth. Finally, the Bureau seeks comment on whether 
to apply the method adopted in the Line Counts Update Order, 65 FR 
81759, December 27, 2000, for matching line count data to wire centers 
used in the model for calculating support in 2002.
    Other Model Inputs. In addition to line counts, the model uses 
other types of data that are updated annually under current Commission 
rules and procedures. Among other things, the model uses company-
specific ARMIS data to calculate investment in general support 
facilities (GSF). GSF investment includes buildings, motor vehicles, 
and general purpose computers. A portion of GSF investment must be 
added to the model's estimate of outside plant, switching, and 
transport investment to adequately reflect the cost of providing the 
supported services. The Bureau seeks comment on whether it should 
update the tables in the model with 2000 ARMIS data to estimate GSF 
investment.
    The model also uses company-specific data in determining switching 
costs. A wire center's switch directs both interstate and intrastate 
traffic. Universal service support, however, is only provided for the 
portion of the switch used to direct intrastate traffic. Therefore, to 
determine the amount of a wire center's switch that is eligible for 
support, the model needs to determine the percentage of the switch used 
to direct intrastate service. The model currently uses 1997 and 1998 
traffic parameters from ARMIS and the National Exchange Carrier 
Association (NECA) to determine the percentage of the switch allocated 
to supported services and the switch port requirement for interoffice 
transport. The Bureau seeks comment on whether it should update the 
tables in the model with currently available traffic parameters to 
determine the percentage of switch allocated to supported services and 
the switch port requirement for interoffice transport. In particular, 
the Bureau seeks comment on whether it would be more consistent to use 
the NECA data as the sole source for traffic parameter data instead of 
obtaining these data from two sources.
    Pursuant to sections 1.415 and 1.419 of the Commission's rules, 
interested parties may file comments as follows: comment are due 
October 4, 2001 and reply comments are due October 10, 2001. Comments 
may be filed using the Commission's Electronic Comment Filing System 
(ECFS) or by filing paper copies. See Electronic Filing of Documents in 
Rulemaking Proceedings, 63 FR 24,121 (1998). Comments filed through the 
ECFS can be sent as an electronic file via the Internet to http://www.fcc.gov/e-file/ecfs.html. Generally, only one copy of an electronic 
submission must be filed. In completing the transmittal screen, 
commenters should include their full name, Postal Service mailing 
address, and the applicable docket or rulemaking number. Parties may 
also submit electronic comments by Internet e-mail. To receive filing 
instructions for e-mail comments, commenters should send an e-mail to 
[email protected], and should include the following words in the body of the 
message, ``get form your e-mail address''. A sample form and directions 
will be sent in reply. Parties who choose to file by paper must file an 
original and four copies of each filing. All filings

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must be sent to the Commission's Secretary, Magalie Roman Salas, Office 
of the Secretary, Federal Communications Commission, 445 12th Street, 
SW., Washington, DC 20554.
    Parties also must send three paper copies of their filing to Sheryl 
Todd, Accounting Policy Division, Common Carrier Bureau, Federal 
Communications Commission, 445 Twelfth Street SW., Room 5-A422, 
Washington, DC 20554. In addition, commenters must send diskette copies 
to the Commission's duplicating contractor, Qualex International, 
Portals II, 445 12th Street, SW., Room CY-B402, Washington, DC, 20554.
    Pursuant to Sec. 1.1206 of the Commission's Rules, this proceeding 
will continue to be conducted as a permit-but-disclose proceeding in 
which ex-parte communications are permitted subject to disclosure.

Federal Communications Commission.
Eric N. Einhorn,
Acting Deputy Division Chief, Accounting Policy Division.
[FR Doc. 01-23269 Filed 9-18-01; 8:45 am]
BILLING CODE 6712-01-P