FCC 97-158
APPENDIX C - Final Rules
AMENDMENTS TO THE CODE OF FEDERAL REGULATIONS
PART 61 -- TARIFFS
1. The authority citation for Part 61 continues to read as follows:
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.
2. Section 61.3 is amended by revising paragraph (f) to read as follows:
§ 61.3 Definitions
* * * * *
(f) Basket. Any class or category of tariffed service or charge:
(1) * * *
* * * * *
3. Section 61.42 is amended by revising paragraphs (d) and (e) as follows:
§ 61.42 Price cap baskets and service categories.
* * * * *
(d) * * *
(1) A basket for the common line interstate access elements as described in
§§ 69.115, 69.152, 69.154, and 69.157, and that portion of the interstate access element
described in § 69.153 that recovers common line interstate access revenues;
(2) A basket for traffic sensitive switched interstate access elements;
(3) A basket for trunking services as described in §§ 69.110, 69.111, 69.112,
69.114, 69.125(b), and 69.155, and that portion of the interstate access element described
in § 69.153 that recovers residual interconnection charge revenues;
* * *
(6) A basket for the marketing expenses described in § 69.156, including those
recovered through End User Common Line charges and Presubscribed Interexchange
Carrier charges.
(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 § 69.106(f);
(ii) Information, as described in § 69.109;
(iii) Data base access services;
(iv) Billing name and address, as described in § 69.128 of this chapter;
(v) Local switching trunk ports, as described in § 69.106(f)(1);
(vi) Signalling transfer point port termination, as described in § 69.125(c).
(2) * * *
(vi) Interconnection charge, as recovered in §§ 69.153 and 69.155 of this
chapter.
* * * * *
4. Section 61.45 is amended by revising paragraph (b), revising paragraph (c) and redesignating it
as subparagraph (c)(1), adding new subparagraph (c)(2), adding subparagraph (d)(1)(ix), and
adding paragraphs (i), (j), (k), and (l) to read as follows:
§ 61.45 Adjustments to the PCI for local exchange carriers.
* * * * *
(b) Adjustments to local exchange carrier PCIs for the baskets designated in
§ 61.42(d)(2), (3), (4), (5), and (6) shall be made pursuant to the formula set forth in § 61.44(b),
and as further explained in §§ 61.44(e), (f), (g), and (h).
(1) Notwithstanding the value of X defined in § 61.44(b), the X value applicable to
the baskets specified in § 61.42(d)(2), (3), and (6) shall be 4.0%, or 4.7%, or 5.3%, as the
carrier elects.
* * * * *
(c)(1) Subject to paragraphs (c)(2) and (e) of this section, adjustments to local
exchange carrier PCIs for the basket designated in § 61.42(d)(1) shall be made pursuant to
the following formula:
* * *
(2) The formula set forth in paragraph (c)(1) shall be used by a local exchange
carrier subject to price cap regulation only if that carrier is imposing a carrier common line
charge pursuant to § 69.154 of this chapter. Otherwise, adjustments to local exchange
carrier PCIs for the basket designated in § 61.42(d)(1) of this chapter shall be made
pursuant to the formula set forth in § 61.44(b), and paragraphs (i) and (j) of this section,
and as further explained in § 61.44(e), (f), (g), and (h).
(d) * * *
(1) * * *
(ix) the completion of amortization of equal access expenses.
* * * * *
(i)(1) Notwithstanding the provisions of paragraphs (b) and (c), and subject to the
limitations of paragraph (j), price cap local exchange carriers that are recovering
interconnection charge revenues through per-minute rates pursuant to § 69.124 or
§ 69.155 shall target, to the extent necessary to eliminate the recovery of any residual
interconnection charge revenues through per-minute rates, any PCI reductions associated
with the baskets designated in § 61.42(d)(1) and (2) that result from the application of the
formula in § 61.44(b), as further explained in § 61.44(e), (f), (g), and (h), to the PCI for
the basket designated in § 61.42(d)(3), with no adjustment being made to the PCIs for the
baskets designated in § 61.42(d)(1) and (2) as a result of the application of the formula in
§ 61.44(b). These reductions are to be made after the adjustment is made to the PCI for
the basket designated in § 61.42(d)(3) resulting from the application of the formula in
§ 61.44(b), as further explained in § 61.44(e), (f), (g), and (h).
(2) Notwithstanding the provisions of paragraphs (b) and (c), and subject to the
limitations of paragraph (j), price cap local exchange carriers that are recovering
interconnection charge revenues through per-minute rates pursuant to § 69.155 shall
target, to the extent necessary to eliminate the recovery of any residual interconnection
charge revenues through per-minute rates, any PCI reductions associated with the basket
designated in § 61.42(d)(6) that result from the application of the formula in § 61.44(b), as
further explained in § 61.44(e), (f), (g), and (h), to the PCI for the basket designated in
§ 61.42(d)(3), with no adjustment being made to the PCIs for the basket designated in
§ 61.42(d)(6) as a result of the application of the formula in § 61.44(b). This reduction is
to be made after any adjustment made pursuant to subparagraph (i)(1).
(3) Through December 31, 1997, the reduction in the PCI for the basket
designated in § 61.42(d)(3) that results from subparagraph (i)(1) shall be determined by
dividing the sum of the dollar effects of the PCI reductions that would have applied to the
baskets designated in § 61.42(d)(1) and (d)(2) except for the provisions of subparagraph
(i)(1) by the dollar amount associated with the PCI for the basket designated in
§ 61.42(d)(3), and multiplying the PCI for the basket designated in § 61.42(d)(3) by one
minus the resulting ratio.
(4) Effective January 1, 1998, the reduction in the PCI for the basket designated in
§ 61.42(d)(3) that results from subparagraphs (i)(1) (and (i)(2) shall be determined by
dividing the sum of the dollar effects of the PCI reductions that would have applied to the
baskets designated in § 61.42(d)(1), (d)(2), and (d)(6), except for the provisions of
subparagraphs (i)(1) and (i)(2), by the dollar amount associated with the PCI for the
basket designated in § 61.42(d)(3), and multiplying the PCI for the basket designated in
§ 61.42(d)(3) by one minus the resulting ratio.
(j) In determining the extent of the targeting that shall occur pursuant to subparagraphs
(i)(1) and (i)(2), local exchange carriers shall compute their anticipated residual interconnection
charge amount by excluding revenues that are expected to be reallocated to cost-causative
facilities-based charges in the future. To determine interconnection charge amounts so excluded
in connection with the July 1, 1997 tariff filings, the local exchange carriers listed below shall use
as an estimate of the residual interconnection charge revenues the specified residual
interconnection charge percentage: NYNEX, 77.63 percent; BellSouth, 56.93 percent; U S West,
59.14 percent; Bell Atlantic, 63.96 percent; Southwestern Bell Telephone, 69.11 percent; and
Pacific Bell and Nevada Bell, 53.52 percent. Each remaining price cap local exchange carrier
shall estimate a residual interconnection charge in an amount equal to 55 percent of its current
interconnection charge revenues. For subsequent tariff filings in which the PCI reductions are to
be targeted to the interconnection charge, these initial estimates shall be adjusted to reflect the
actual amounts that have or will be reallocated. If the use of these estimates results in more PCI
reductions being targeted to the interconnection charge than required to eliminate the per-minute
interconnection charge, the local exchange carrier shall make the necessary exogenous
adjustments to reverse the effects of the excess targeting.
(k) The calculation of the PCI for the basket designated in § 61.42(d)(3) shall include any
residual interconnection charge revenues recovered pursuant to §§ 69.153 and 69.155.
(l) The calculation of the PCI for the basket designated in § 61.42(d)(6) shall include any
marketing expense revenues recovered pursuant to §§ 69.153 and 69.156.
5. Section 61.46 is amended by revising paragraph (d) and redesignating it as subparagraph
(d)(1), adding new subparagraph (d)(2), revising paragraph (e) and redesignating it as
subparagraph (e)(1), adding new subparagraph (e)(2), and adding paragraphs (g) and (h) as
follows:
§ 61.46 Adjustments to the API
* * * * *
(d)(1) Subject to subparagraph (d)(2) of this section, and in connection with any
price cap tariff proposing changes to rates for services in the basket designated in
§ 61.42(d)(1), the maximum allowable carrier common line (CCL) charges shall be
computed pursuant to the following methodology:
CCLMOU = CLMOU * (1 + % change in CL PCI) - (EUCLMOU + PICCMOU) * 1 / (1 +(g/2))
where
CCLMOU = the sum of each of the proposed Carrier Common Line rates multiplied by
its corresponding base period Carrier Common Line minutes of use,
divided by the sum of all types of base period Carrier Common Line
minutes of use,
CLMOU = the sum of each of the existing maximum allowable Carrier Common Line
rates multiplied by its corresponding base period Carrier Common Line
minutes of use, plus each existing maximum allowable End User Common
Line (EUCL) rate multiplied by its corresponding base period lines, plus
the common line portion of each existing maximum allowable
Presubscribed Interexchange Carrier Charge (PICC) multiplied by its
corresponding base period lines, divided by the sum of all types of base
period Carrier Common Line minutes of use,
EUCLMOU = maximum allowable End User Common Line rates multiplied by base
period lines, and divided by the sum of all types of base period Carrier
Common Line minutes of use,
PICCMOU = the common line portion of maximum allowable Presubscribed
Interexchange Carrier charge rates multiplied by base period lines, and
divided by the sum of all types of base period Carrier Common Line
minutes of use, and
g = 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, minus 1.
(2) The formula set forth in subparagraph (d)(1) of this section shall be used by a
local exchange carrier subject to price cap regulation only if that carrier is imposing a per-minute carrier common line charge pursuant to § 69.154 of this chapter. Otherwise,
adjustments to local exchange carrier APIs for the basket designated in § 61.42(d)(1) of
this chapter shall be made pursuant to the formula set forth in paragraph (a) of this
section.
(e)(1) In addition, for the purposes of paragraph (d), "Existing Carrier Common
Line Rates" shall include existing originating premium, originating non-premium,
terminating premium and terminating non-premium rates; and "End User Common Line
Rates" used to calculate the CLMOU and the EUCLMOU factors shall include, but not be
limited to, Residential and Single Line Business rates, Centrex rates, and the Special
Access surcharge.
(2) For purposes of paragraph (d), "each existing Presubscribed Interexchange
Carrier Charge" shall include all the charges specified in § 69.153 of this chapter.
* * * * *
(g) The calculation of the API for the basket designated in § 61.42(d)(3) shall include any
residual interconnection charge revenues recovered pursuant to §§ 69.153 and 69.155.
(h) The calculation of the API for the basket designated in § 61.42(d)(6) shall include any
marketing expense revenues recovered pursuant to §§ 69.153 and 69.156.
6. Section 61.47 is amended by adding paragraph (i) and (j), and subparagraph (g)(7) as follows:
§ 61.47 Adjustments to the SBI; pricing bands.
* * * * *
(g)(7) The initial level of the local switch trunk ports service category designated
in § 61.42(e)(1)(v) shall be established to include those costs identified pursuant to
§ 69.106(f)(1). This level shall be assigned a value of 100 and, thereafter must be adjusted
as provided in paragraph (a) of this section, subject to the banding restrictions of
paragraph (e).
* * * * *
(i)(1) Through December 31, 1997, notwithstanding the requirements of paragraph
(a), if a local exchange carrier is recovering interconnection charge revenues through per-minute rates pursuant to § 69.124 or § 69.155, any reductions to the PCI for the basket
designated in § 61.42(d)(3) resulting from the application of the provisions of § 61.45(b)
and (i)(1) shall be directed to the SBI of the service category designated in
§ 61.42(e)(2)(vi).
(2) Effective January 1, 1998, notwithstanding the requirements of paragraph (a),
if a local exchange carrier is recovering interconnection charge revenues through per-minute rates pursuant to § 69.155, any reductions to the PCI for the basket designated in
§ 61.42(d)(3) resulting from the application of the provisions of § 61.45(b), (i)(1), and
(i)(2) shall be directed to the SBI of the service category designated in § 61.42(e)(2)(vi).
(3) Through December 31, 1997, the SBI reduction required by subparagraph
(i)(1) shall be determined by dividing the sum of the dollar amount of any PCI reduction
required by § 61.45(i)(1) and from the application of § 61.45(b) to the basket described in
§ 61.42(d)(3) by the dollar amount associated with the SBI for the service category
designated in § 61.42(e)(2)(vi), and multiplying the SBI for the service category
designated in § 61.42(e)(2)(vi) by one minus the resulting ratio.
(4) Effective January 1, 1998, the SBI reduction required by subparagraph (i)(2)
shall be determined by dividing the sum of the dollar amount of any PCI reduction
required by § 61.45(i)(1) and (i)(2), and from the application of § 61.45(b) to the basket
described in § 61.42(d)(3) by the dollar amount associated with the SBI for the service
category designated in § 61.42(e)(2)(vi), and multiplying the SBI for the service category
designated in § 61.42(e)(2)(vi) by one minus the resulting ratio.
(j) The calculation of the SBI for the service category designated in § 61.42(e)(2)(vi) shall
include any residual interconnection charge revenues recovered pursuant to §§ 69.153 and
69.155.
7. Section 61.48 is amended by adding paragraph (k) to read as follows:
§ 61.48 Transition rules for price cap formula calculations.
* * * * *
(k) Marketing expenses. In the January 1, 1998 price cap tariff filing, local exchange
carriers shall establish the marketing expense basket designated in § 61.42(d)(6) with an initial
PCI and API level of 100. The initial value of 100 for the PCI and API for marketing expenses
shall correspond to the marketing expenses described in § 69.156(a).
PART 69 -- ACCESS CHARGES
8. The authority citation for part 69 continues to read as follows:
Authority: 47 U.S.C. §§ 154(i) and (j), 201, 202, 203, 205, 218, 254, and 403.
9. Section 69.1(c) is revised to read as follows:
§ 69.1 Application of access charges.
* * * * *
(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
§§ 43.21 and 43.22 of this chapter, and for computing initial charges for new rate elements: §§
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(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.
10. Section 69.2 is amended by revising paragraph (hh) to read as follows:
§ 69.2 Definitions.
(hh) "Telephone company" or "local exchange carrier" as used in this Part means an
incumbent local exchange carrier as defined in section 251(h)(1) of the 1934 Act as amended by
the 1996 Act.
11. Section 69.4 is amended by deleting paragraphs (d) and (f), and subparagraph (b)(1), by
revising paragraph (b), and by adding paragraph (h) as follows:
§ 69.4 Charges to be filed.
* * * * *
(b) Except as provided in § 69.4(c), (e), and (h), and in § 69.118, the carrier's carrier
charges for access service filed with this Commission shall include charges for each of the
following elements:
(1) [Deleted].
* * * * *
(h) In addition to the charges specified in paragraph (b), 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 port;
(5) dedicated tandem switching trunk port;
(6) line port costs in excess of basic, analog service; and
(7) multiplexers associated with tandem switching.
12. Section 69.103 is deleted.
13. Section 69.104 is renamed as follows. Paragraphs (a) and (e) are revised as follows:
§ 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 § 61.3(x) 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 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.
* * * * *
(e) The monthly charge for each residential and single line business local exchange service
subscriber shall be the charge computed in accordance with § 69.104(c), or $3.50, whichever is
lower.
* * * * *
14. Section 69.105 is renamed as follows. Subparagraphs (b)(7) and (b)(8) are deleted, and
paragraph (a) is revised to read as follows:
§ 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 § 61.3(x) of this Chapter. 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).
* * * * *
15. Section 69.106 is amended by revising paragraphs (a) and (b), and by adding paragraphs (f)
and (g) as follows:
§ 69.106 Local switching.
(a) Except as provided in § 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) shall be computed by dividing the
projected annual revenue requirement for the Local Switching element by the projected annual
access minutes of use for all interstate or foreign services that use local exchange switching
facilities.
* * * * *
(f) Except as provided in § 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 subparagraph (f)(1) 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 subparagraph (f)(1) 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 § 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 subparagraph (1) 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) On or after July 1, 1998, a price cap local exchange carrier may recover signalling
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. Price cap local exchange
carriers may not recover through this charge any costs recovered through other rate elements.
16. Section 69.107 is deleted.
17. Section 69.111 is amended by deleting paragraphs (b) and (f), revising paragraphs (a), (c),
(d), (e), and (g), and adding paragraph (l) to read as follows:
§ 69.111 Tandem-Switched Transport and Tandem Charge.
(a)(1) Through June 30, 1998, except as provided in paragraph (l), below,
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), below,
tandem-switched transport shall consist of three rate elements as follows:
(i) A per-minute charge for transport of traffic over common transport
facilities between the incumbent local exchange carrier's end office and the tandem
switching office. This charge shall be expressed in dollars and cents per access
minute of use and shall be assessed upon all purchasers of common transport
facilities between the local exchange carrier's end office and the tandem switching
office.
(ii) A per-minute tandem switching charge. This tandem switching charge
shall be set in accordance with paragraph (g), excluding multiplexer and dedicated
port costs recovered in accordance with paragraph (l), 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 § 69.112 of this part.
(b) [Deleted.]
(c)(1) Through June 30, 1998, tandem-switched transport transmission charges
generally shall be presumed reasonable if the telephone company 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 generally shall be suspended and investigated
absent a substantial cause showing by the telephone company.
(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
69.124, per-minute common transport charges described in subparagraph
(a)(2)(i) 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 69.124, per-minute common transport charges described in subparagraph (a)(2)(i) 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 subparagraph (a)(2)(i) 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 subparagraph
(a)(2)(i):
(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) [Deleted.]
(g)(1) The tandem switching charge imposed pursuant to subparagraph (a)(1) or
(a)(2)(ii), 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 §§ 69.124, 69.153, and 69.155, excluding multiplexer and dedicated port
costs recovered in accordance with paragraph (l).
(2) Beginning January 1, 1999, the tandem switching charge imposed pursuant to
subparagraph (a)(2)(ii) shall be set to recover the amount prescribed in subparagraph
(g)(1) plus one half of the remaining portion of the tandem switching revenue requirement
then being recovered through the interconnection charge recovered by §§ 69.124, 69.153,
and 69.155, excluding multiplexer and dedicated port costs recovered in accordance with
paragraph (l).
(3) Beginning January 1, 2000, the tandem switching charge imposed pursuant to
subparagraph (a)(2)(ii) shall be set to recover the entire interstate tandem switching
revenue requirement, including that portion formerly recovered through the
interconnection charge recovered in §§ 69.124, 69.153, and 69.155, and excluding
multiplexer and dedicated port costs recovered in accordance with paragraph (l).
(4) A local exchange carrier that is subject to price cap regulation as that term is
defined in § 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 § 69.124, as of June 30, 1997.
* * * * *
(l) In addition to the charges described above, 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 serving
wire center side of the tandem switch by the projected annual access minutes of use
calculated for purposes of recovery of common transport costs in paragraph (c), above. 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 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.
18. Section 69.122 is deleted.
19. Section 69.123 is amended by adding paragraph (f) to read as follows:
§ 69.123 Density pricing zones for special access and switched transport.
* * * * *
(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 section 69.124 to facilities-based transport rates, reflecting the higher
costs of serving lower-density areas. Each incumbent local exchange carrier must
reallocate costs from the interconnection charge each time it increases the differential
between prices in density zones two and one or between three and one.
(2) Any incumbent local exchange carrier that has already deaveraged its rates on
the date these rules become effective must reallocate an amount equivalent to that
described in subparagraph (1) from the interconnection charge prescribed in section
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 subparagraph (1) or (2) in a manner that reflects the way density pricing
zones are being implemented by the incumbent local exchange carrier.
20. Section 69.124 is amended by revising paragraph (a) and subparagraph (b)(1), and by
deleting subparagraph (b)(2) to read as follows:
§ 69.124 Interconnection charge.
(a) For telephone companies not subject to price cap regulation, an interconnection charge
expressed in dollars and cents per access minute shall be assessed upon all interexchange carriers
and upon all other persons using the telephone company local transport network.
(b)(1) For telephone companies not subject to price cap regulation, the
interconnection charge shall be computed by subtracting entrance facilities, tandem-switched transport, direct-trunked transport, and dedicated signalling transport revenues
from the Part 69 transport revenue requirement, and dividing by the total interstate local
transport minutes.
(2) [Deleted]
(c) [Deleted]
21. Section 69.125 is amended by revising paragraph (a) to read as follows:
§ 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.
* * * * *
22. Section 69.126 is revised as follows:
§ 69.126 Nonrecurring charges.
As of the effective date of the First Report and Order in Access Charge Reform, CC
Docket No. 96-262, FCC 97-158, 12 FCC Rcd ___ (1997), incumbent local exchange carriers
shall not assess any nonrecurring charges for service connection when an interexchange carrier
converts trunks from tandem-switched transport to direct-trunked transport or when an
interexchange carrier orders the disconnection of overprovisioned trunks, until six months after
the effective date of the tariffs eliminating the unitary pricing option for tandem-switched
transport.
23. New Subpart C is added beginning with section 69.151:
SUBPART C -- COMPUTATION OF CHARGES FOR PRICE CAP LOCAL
EXCHANGE CARRIERS
§ 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.
§ 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) Except as provided in paragraphs (d)-(i), the maximum single line rate or charge shall
be computed:
(1) 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, only so long as a per-minute
carrier common line charge is assessed or the multi-line PICC defined in § 69.153 recovers
common line revenues.
(2) by dividing one-twelfth of the projected annual revenues permitted for the
common line basket under the Commission's price cap rules, as set forth in Part 61 of this
chapter, by the projected average number of local exchange service subscriber lines in use
during such annual period, if no per-minute carrier common line charge is assessed and the
multi-line PICC defined in § 69.153 does not recover any common line revenues.
(3) Provided, however, that the charge for each local exchange service subscriber
line shall not exceed $9.00 as adjusted by the inflation factor computed under paragraph
(k).
(c) The charge for each subscriber line associated with a public telephone shall be equal to
the monthly charge computed in accordance with paragraph (b).
(d)(1) Through December 31, 1997, the monthly charge for each primary
residential or single line business local exchange service subscriber line shall be the charge
computed in accordance with paragraph (b), or $3.50, whichever is lower.
(2) Beginning January 1, 1998, the maximum monthly charge for each primary
residential or single line business local exchange service subscriber line shall be the charge
computed in accordance with paragraph (b), or $3.50, whichever is lower.
(e)(1) Through December 31, 1997, the monthly charge for each non-primary
residential local exchange service subscriber line shall be the charge computed in
accordance with paragraph (b), or $3.50, whichever is lower.
(2) Beginning January 1, 1998, the maximum monthly charge for each non-primary
residential local exchange service subscriber line shall be the lower of:
(i) the maximum charge computed in accordance with paragraph (b); or
(ii) $5.00. On January 1, 1999, this amount shall be adjusted by the
inflation factor computed under paragraph (k), and increased by $1.00. On July 1,
2000, and in each subsequent year, this amount shall be adjusted by the inflation
factor computed under paragraph (k), and increased by $1.00.
(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) from the other carrier.
(f) Except as provided in paragraphs (n) and (o), 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) [reserved]
(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) On January 1, 1999:
(i) The ceiling for multi-line business subscriber lines under subparagraph
(b)(3) will be adjusted to reflect inflation as measured by the change in GDP-PI for
the 18 months ending September 30, 1998.
(ii) The ceiling for non-primary residential subscriber lines under
subparagraph (e)(2)(ii) will be adjusted to reflect inflation as measured by the
change in GDP-PI for the 12 months ending September 30, 1998.
(2) On July 1, 2000, the ceiling for multi-line business subscriber lines and non-primary residential subscriber lines will be adjusted to reflect inflation as measured by the
change in GDP-PI for the 18 months ending on March 31, 2000.
(3) On July 1 of each subsequent year, the ceiling for multi-line business subscriber
lines and non-primary residential subscriber lines will be adjusted to reflect inflation as
measured by the change in GDP-PI for the 12 months ending on March 31 of the year the
adjustment is made.
(l)(1) Beginning January 1, 1998, local exchange carriers shall assess no more than
one end user common line charge as calculated under the applicable method under
paragraph (e) 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 (b) 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) Through December 31, 1997, the End User Common Line charge for a residential
subscriber shall be 50% of the charge specified in § 69.152(b) and (d) if the residential local
exchange service rate for such subscribers is reduced by an equivalent amount, provided that such
local exchange service rate reduction is based upon a means test that is subject to verification.
(o) Subparagraphs (1) and (2) are effective through December 31, 1997.
(1) The End User Common Line charge for residential subscribers shall be reduced
to the extent of the state assistance as calculated in subparagraph (2) of this section, or
waived in full if the state assistance equals or exceeds the residential End User Common
Line charge under the circumstances described below. In order to qualify for this waiver,
the subscriber must be eligible for and receive assistance or benefits provided pursuant to
a narrowly targeted telephone company lifeline assistance program, requiring verification
of eligibility, implemented by the state or local telephone company. A state or local
telephone company wishing to implement this End User Common Line reduction or
waiver for its subscribers shall file information with the Commission Secretary
demonstrating that its plan meets the criteria set out in this section and showing the
amount of state assistance per subscriber as described in subparagraph (2). The reduction
or waiver of the End User Common Line charge shall be available as soon as the
Commission certifies that the state or local telephone plan satisfies the criteria set out in
this subsection and the relevant tariff provisions become effective.
(2)(i) The state assistance per subscriber shall be equal to the difference
between the charges to be paid by the participating subscribers and those to be
paid by other subscribers for comparable monthly local exchange service, service
connections and customer deposits, except that benefits or assistance for
connection charges and deposit requirements may only be counted once annually.
In order to be included in calculating the state assistance, such benefits must be a
single telephone line to the household's principal residence.
(ii) The monthly state assistance per participating subscriber shall be
calculated by adding the amounts calculated in subparagraphs (2)(ii)(A) and (B).
(A) The amount of the monthly state assistance per participating
subscriber for local exchange service shall be calculated by dividing the
annual difference between charges paid by all participating subscribers for
residential local exchange service and the amount which would have been
charged to non-qualifying subscribers for comparable service by twelve
times the number of subscribers participating in the state assistance
program. Estimates may be used when historic data are not available.
(B) The amount of the monthly state assistance for service
connections and customer deposits per participating subscriber shall be
calculated by determining the annual amount of the reductions in these
charges for participating subscribers each year and dividing this amount by
twelve times the number of participating subscribers. Estimates may be
used when historic data are not available.
(p) Through December 31, 1997, in connection with the filing of access tariffs pursuant to
§ 69.3(a), telephone companies shall calculate for the association their projected revenue
requirement attributable to the operation of § 69.104(n) through (o). The projected amount will
be adjusted by the association to reflect the actual lifeline assistance benefits paid in the previous
period. If the actual benefits exceeded the projected amount for that period, the differential will be
added to the projection for the ensuing period. If the actual benefits were less than the projected
amount for that period, the differential will be subtracted from the projection for the ensuing
period. Through December 31, 1997, the association shall so adjust amounts to the Lifeline
Assistance revenue requirement, bill and collect such amounts from interexchange carriers
pursuant to § 69.117 and distribute the funds to qualifying telephone companies pursuant to §
69.603(d).
§ 69.153 Presubscribed interexchange carrier charge (PICC).
(a) A charge expressed in dollars and cents per line may be assessed upon the subscriber's
presubscribed interexchange carrier to recover the common line revenues permitted under the
price cap rules in Part 61 of this chapter that cannot be recovered through the end user common
line charge established under § 69.152, residual interconnection charge revenues, and certain
marketing expenses described in § 69.153(a). In the event the ceilings on the PICC prevent the
PICC from recovering all the residual common line, residual interconnection charge revenues, and
marketing expenses, the PICC shall recover all residual common line revenues before it recovers
residual interconnection charge revenues, and all residual interconnection charge revenues before
it recovers marketing expenses.
(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) The maximum monthly PICC for primary residential subscriber lines and single-line
business subscriber lines shall be the lower of:
(1) One twelfth of the sum of annual common line revenues and residual
interconnection charge revenues permitted under our price cap rules divided by the
projected average number of local exchange service subscriber lines in use during such
annual period, minus $3.50; or
(2) $0.53. On January 1, 1999, this amount shall be adjusted by the inflation factor
computed under subparagraph (e), and increased by $0.50. On July 1, 2000, and in each
subsequent year, this amount shall be adjusted by the inflation factor computed under
subparagraph (e), and increased by $0.50.
(d) To the extent that a local exchange carrier cannot recover its full common line
revenues, residual interconnection charge revenues, and those marketing expense revenues
described in § 69.156(a) permitted under price cap regulation through the recovery mechanisms
established in §§ 69.152, 69.153(c), and 69.156(b) and (c), the local exchange carrier may assess
a PICC on multi-line business subscriber lines and non-primary residential subscriber lines.
(1) The maximum monthly PICC for non-primary residential subscriber lines shall
be the lower of:
(i) One twelfth of the annual common line, residual interconnection charge,
and § 69.156(a) marketing expense revenues permitted under our price cap rules,
less the maximum amounts permitted to be recovered through the recovery
mechanisms under §§ 69.152, 69.153(c), and 69.156(b) and (c), divided by the
total number of projected non-primary residential and multi-line business
subscriber lines in use during such annual period; or
(ii) $1.50. On January 1, 1999, this amount shall be adjusted by the
inflation factor computed under subparagraph (e), and increased by $1.00. On July
1, 2000, and in each subsequent year, this amount shall be adjusted by the inflation
factor computed under subparagraph (e), and increased by $1.00.
(2) If the maximum monthly PICC for non-primary residential subscriber lines is
determined using paragraph (d)(1)(i), the maximum monthly PICC for multi-line business
subscriber lines shall equal the maximum monthly PICC of non-primary residential
subscriber lines. Otherwise, the maximum monthly PICC for multi-line business lines shall
be the lower of:
(i) One twelfth of the annual common line, residual interconnection charge,
and § 69.156(a) marketing expense revenues permitted under our rules, less the
maximum amounts permitted to be recovered through the recovery mechanisms
under §§ 69.152, 69.153(c) and (d)(1)(i), and 69.156 (b) and (c), divided by the
total number of projected multi-line business subscriber lines in use during such
annual period; or
(ii) $2.75. On January 1, 1999, this amount shall be adjusted by the
inflation factor computed under subparagraph (e), and increased by $1.50. On July
1, 2000, and in each subsequent year, this amount shall be adjusted by the inflation
factor computed under subparagraph (e), and increased by $1.50.
(e) For the PICC ceiling for primary residential subscriber lines and single-line business
subscriber lines under subparagraph (c)(2), non-primary residential subscriber lines under
subparagraph (d)(1)(ii), and multi-line business subscriber lines under subparagraph (d)(2)(ii):
(1) On January 1, 1999, the ceiling will be adjusted to reflect inflation as measured
by the change in GDP-PI for the 12 months ending September 30, 1998.
(2) On July 1, 2000, the ceiling will be adjusted to reflect inflation as measured by
the change in GDP-PI for the 18 months ending on March 31, 2000.
(3) On July 1 of each subsequent year, the ceiling will be adjusted to reflect
inflation as measured by the change in GDP-PI for the 12 months ending on March 31 of
the year the adjustment is made.
(f)(1) Local exchange carriers shall assess no more than one PICC as calculated
under the applicable method under subparagraph (d)(1) for Basic Rate Interface integrated
services digital network (ISDN) service.
(2) Local exchange carriers shall assess no more than five PICCs as calculated
under subparagraph (d)(2) for Primary Rate Interface ISDN service.
§ 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). The maximum such charge shall be the lower of:
(1) the per-minute rate that would recover annual common line revenues permitted
less the maximum amounts allowed to be recovered under §§ 69.152 and 69.153; 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) 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).
(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). The non-premium charges shall be equal to .45 multiplied by the premium charges.
§ 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 § 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 § 69.154(a).
(b) To the extent that paragraph (a) 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) Any charge assessed pursuant to paragraph (a) or (b) shall be assessed only upon
minutes utilizing the local exchange carrier's local transport service.
§ 69.156 Marketing expenses.
(a) Local exchange carriers shall recover marketing expenses that are allocated to the
common line and traffic sensitive baskets, and the switched services within the trunking basket
pursuant to §§ 32.6610 and 69.403 of this Chapter.
(b) The expenses described in paragraph (a) may be recovered from non-primary
residential subscriber lines, by increasing the end user common line charge described in
§ 69.152(e). The amount of marketing expenses permitted to be recovered in this manner shall be
the total marketing expenses described in paragraph (a) divided by the sum of non-primary
residential lines and multi-line business lines. In no event shall the end user common line charge
for these lines exceed the lower of the ceilings established in § 69.152(b)(3) and (e)(2)(ii).
(c) The expenses described in paragraph (a) may be recovered from multi-line business
subscriber lines, by increasing the end user common line charge described in § 69.152(b). The
amount permitted to be recovered in this manner shall be the total marketing expenses described
in paragraph (a) divided by the sum of non-primary residential lines and multi-line business lines.
In no event shall the end user common line charge for these lines exceed the ceiling established in
§ 69.152(b)(3).
(d) In the event that the ceilings set forth in paragraphs (b) and (c), and § 69.153(d)
prevent a local exchange carrier from recovering fully the marketing expenses described in
paragraph (a), the local exchange carrier may recover the remainder through a per-minute
assessment on originating access minutes, so long as the charge for originating access does not
exceed the amount defined in § 69.155(a)(2) less the maximum permitted to be recovered under
§ 69.155(a).
(e) In the event that the ceilings set forth in paragraphs (b), (c) and (d), and § 69.153(d)
prevent a local exchange carrier from recovering fully the marketing expenses described in
paragraph (a), the local exchange carrier may recover the remainder through a per-minute
assessment on terminating access minutes.
(f) The amount of marketing expenses that may be recovered each year shall be adjusted in
accordance with the price cap rules set forth in Part 61.
§ 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.
24. Subpart C -- Computation of Transition Charge, sections 69.201-69.205, is deleted.
25. Section 69.303 is amended by deleting paragraph (a) and redesignating paragraph (b) as
section 69.303.
26. Section 69.304 is amended by deleting paragraph (c).
27. Section 69.305 is amended by revising paragraphs (b) and (d), and adding paragraph (e) to
read as follows:
§ 69.305 Carrier cable and wire facilities (C&WF).
* * * * *
(b) Carrier C&WF, other than WATS access lines, not assigned pursuant to paragraphs
(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.
* * * * *
(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.
28. Section 69.306 is amended by revising paragraphs (c), (d), and (e) to read as follows:
§ 69.306 Central Office Equipment (COE).
* * * * *
(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 § 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, 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.
(e) COE Category 4 (Circuit Equipment) shall be apportioned among the interexchange
category and the Common Line, Transport, and Special Access elements. COE Category 4 shall
be apportioned in the same proportions as the associated Cable and Wireless Facilities; except that
any DS1/voice-grade multiplexer investment associated with analog local switches and assigned
to the local transport category by this rule shall be reallocated to the local switching category.
29. Section 69.307 is amended by deleting paragraph (c).
30. Section 69.308 is deleted.
31. Section 69.309 is amended to read as follows:
§ 69.309 Other investment.
Investment that is not apportioned pursuant to §§ 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
§§ 69.303 through 69.307.
32. Section 69.401 is amended by revising paragraph (b) to read as follows:
§ 69.401 Direct Expenses.
* * * * *
(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
subsection 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.
* * * * *
33. Section 69.406 is amended by deleting subparagraph (a)(9).
34. Section 69.410 is deleted.
35. Section 69.411 is amended to read as follows:
§ 69.411 Other Expense.
Except as provided in §§ 69.412, 69.413, and 69.414, expenses that are not apportioned
pursuant to §§ 69.401 through 69.409 shall be apportioned among the interexchange category
and all access elements in the same manner as § 69.309 Other investment.
36. Section 69.501 is amended by deleting paragraph (a).
37. Section 69.502 is amended to read as follows:
§ 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 § 69.156;
(b) Special Access surcharges; and
(c) The portion of frozen per-line support that carriers receive pursuant to § 54.303 that is
attributable to LTS payments received prior to January 1, 1998.
38. Section 69.611 is deleted.