47 C.F.R. Subpart H—Pricing Flexibility
Title 47 - Telecommunication
Source: 64 FR 51267, Sept. 22, 1999, unless otherwise noted.
The rules in this subpart apply to all incumbent LECs subject to price cap regulation, as defined in §61.3(x) of this chapter, seeking pricing flexibility on the basis of the development of competition in parts of its service area. 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 §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 §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 §64.1401(b)(1) of this chapter. (e) Study area. A common carrier's entire service area within a state. Price cap LECs filing petitions for pricing flexibility shall follow the procedures set forth in §1.774 of this chapter. (a) MSA. (1) A price cap LEC filing a petition for pricing flexibility in an MSA shall include data sufficient to support its petition, as set forth in this subpart, disaggregated by MSA. (2) A price cap LEC may request pricing flexibility for two or more MSAs in a single petition, provided that it submits supporting data disaggregated by MSA. (b) Non-MSA. (1) A price cap LEC will receive pricing flexibility with respect to those parts of a study area that fall outside of any MSA, provided that it provides data sufficient to support a finding that competitors have collocated in a number of wire centers in that non-MSA region sufficient to satisfy the criteria for the pricing flexibility sought in the petition, as set forth in this subpart, if the region at issue were an MSA. (2) The petitioner may aggregate data for all the non-MSA regions in a single study area for which it requests pricing flexibility in its petition. (3) A petitioner may request pricing flexibility in the non-MSA regions of two or more of its study areas, provided that it submits supporting data disaggregated by study area. (a) Scope. This paragraph governs requests for pricing flexibility with respect to the following services: (1) Entrance facilities, as described in §69.110. (2) Transport of traffic over dedicated transport facilities between the serving wire center and the tandem switching office, as described in §69.111(a)(2)(iii). (3) Direct-trunked transport, as described in §69.112. (4) Special access services, as described in §69.114, other than channel terminations as defined in §69.703(a)(2) of this part. (b) Phase I triggers. To obtain Phase I pricing flexibility, as specified in §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 §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 §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 §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 §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 §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. (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 §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 §69.707 of this part, competitors unaffiliated with the price cap LEC have collocated: (1) In 50 percent of the petitioner's wire centers, and that at least one such collocator in each wire center is using transport facilities owned by a transport provider other than the price cap LEC to transport traffic from that wire center; or (2) In wire centers accounting for 65 percent of the petitioner's revenues from channel terminations between LEC end offices and customer premises, determined as specified in §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 §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 §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 §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. (a) Scope. This paragraph governs requests for pricing flexibility with respect to the following services: (1) Common line services, as described in §§69.152, 69.153, and 69.154. (2) Services in the traffic-sensitive basket, as described in §61.42(d)(2) of this chapter. (3) The traffic-sensitive components of tandem-switched transport services, as described in §§69.111(a)(2)(i) and (ii). (b) Phase I triggers. (1) To obtain Phase I pricing flexibility, as specified in §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 §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 §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]
Title 47: Telecommunication
PART 69—ACCESS CHARGES
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.
If a price cap LEC elects to show, in accordance with §69.709 or §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.
§ 69.727 Regulatory relief.
(a) Phase I relief. Upon satisfaction of the Phase I triggers specified in §§69.709(b), 69.711(b), or 69.713(b) for an MSA or the non-MSA parts of a study area, a price cap LEC will be granted the following regulatory relief in that area for the services specified in §§69.709(a), 69.711(a), or 69.713(a), respectively:
(1) Volume and term discounts;
(2) Contract tariff authority, provided that
(i) Contract tariff services are made generally available to all similarly situated customers; and
(ii) The price cap LEC excludes all contract tariff offerings from price cap regulation pursuant to §61.42(f)(1) of this chapter.
(iii) Before the price cap LEC provides a contract tariffed service, under §69.727(a), to one of its long-distance affiliates, as described in section 272 of the Communications Act of 1934, as amended, or §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 §§69.709(c) or 69.711(c) for an MSA or the non-MSA parts of a study area, a price cap LEC will be granted the following regulatory relief in that area for the services specified in §§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 §61.58 of this chapter.
§ 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 §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 §69.703(a)(2).
§ 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 §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 §61.45(d)(1)(vii) of this chapter in all or part of its service region.
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