47 C.F.R. Subpart J—Interstate Access Universal Service Support Mechanism
Title 47 - Telecommunication
(a) Average Price Cap CMT Revenue Per Line Month in a Study Area has the same meaning as that term is defined in §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 §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 §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 §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 §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 §54.806(d). (g) Minimum Support Requirement (MSR) is defined in §54.806(g). (h) Nationwide Total Above Benchmark Revenues is defined in §54.806(b). (i) Price Cap Local Exchange Carrier is defined in §61.3(aa) of this chapter. (j) Preliminary Minimum Access Universal Service Support for a Study Area is the amount calculated pursuant to §54.804. (k) Preliminary Study Area Universal Service Support (PSAUSS) is defined in §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 §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 §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% * Σ (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] (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 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 §54.802 and included in the determination of study area support pursuant to §54.806 for the areas served by the acquiring price cap LEC, beginning with the next support recalculation pursuant to §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 §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. [65 FR 38690, June 21, 2000; 65 FR 57739, Sept. 26, 2000] (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 §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 §54.808: (1)(i) Average Price Cap CMT Revenue per Line month in a study area for each of its study areas; (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 §§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 §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] (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 §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 §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] (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 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] (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] (a) The Administrator, based on the calculations performed in §§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 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] (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 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 §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] 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] (a) Certification. Carriers that desire to receive support pursuant to §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 §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 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 §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]
Title 47: Telecommunication
PART 54—UNIVERSAL SERVICE
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.
