Before the

**Federal Communications Commission**

**Washington, D.C. 20554**

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| In the Matter of                 | ) | CCB/CPD File No. 01-08        |
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| 2001 Annual Access Tariff        | ) |                               |
| Filings                          |   |                               |
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**ORDER ON RECONSIDERATION**

**Adopted: July 31, 2001 Released: July 31, 2001**

By the Chief, Competitive Pricing Division:

# INTRODUCTION

1.  On July 2, 2001, we released the *2001 Annual Access Tariff Filings
    Suspension Order*,[^1] which, *inter alia*, suspended for five
    months and set for investigation the rates for the traffic sensitive
    basket filed by Moultrie Independent Telephone Company, Inc.
    (Moultrie). In the *2001 Annual Access Tariff Filings Suspension
    Order*, we also suspended for one day several local exchange
    carriers' (LECs') 2001 annual access tariffs in certain areas,
    imposed an accounting order, and initiated an investigation into the
    lawfulness of a number of issues raised by these tariff filings. In
    particular, we questioned whether ALLTEL Telephone Systems (ALLTEL)
    had incorrectly derived its dial equipment minutes (DEM) allocation
    factor for setting local switching rates. We also questioned whether
    Ameritech Operating Companies (Ameritech), Frontier Telephone of
    Rochester, Inc. (Frontier of Rochester), Pacific Bell Telephone
    Company (PacBell), Qwest Communications, Inc. (Qwest), and Sprint
    Local Telephone Companies-Nevada (Sprint Nevada) proposed to
    improperly impose a multi-line business subscriber line charge (MLB
    SLC) that was higher than their CMT revenue per line.

2.  In this Order, on our own motion, we reconsider our decision to
    suspend and investigate the MLB SLC in Ameritech's Transmittal
    Number 1270 for its Tariff FCC Number 2; Frontier of Rochester's
    Transmittal Number 48 for its Tariff FCC Number 1; PacBell's
    Transmittal Number 37 for its Tariff FCC Number 1; Qwest's
    Transmittal Numbers 76 and 80 for its Tariff FCC Number 1; and
    Sprint Nevada's Transmittal Number 153 for its Tariff FCC Number 3.
    As we ordered in the *2001 Annual Access Tariff Filings Suspension
    Order*, Moultrie's traffic sensitive rates and ALLTEL's local
    switching rates remain under investigation. The specific issues that
    are the subject of the investigation will be identified in an
    upcoming designation order.

# discussion

3.  In the *2001 Annual Access Tariff Filings Suspension Order*, we
    suspended and set for investigation the MLB SLCs of Ameritech,
    Frontier of Rochester, PacBell, Qwest, and Sprint Nevada.[^2]
    Specifically, we were concerned that the MLB SLCs filed by these
    companies in their 2001 annual access tariff filings exceeded their
    CMT revenue per line.

4.  The Commission's rules regarding the MLB SLC state:

> Beginning on July 1, 2000, for any study area that does not have
> deaveraged \[SLCs\] and in the absence of voluntary reductions, the
> maximum monthly \[SLC\] for multi-line business lines will be the
> lesser of:
>
> \(i\) \$9.20; or
>
> \(ii\) The greater of:

(A) The rate as of June 30, 2000, less reductions needed to ensure over
    > recovery of CMT Revenues does not occur; or

(B) The Average Price Cap CMT Revenue per Line month as defined in §
    > 61.3(d) of this chapter.[^3]

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5.  Our initial review of these companies' MLB SLCs indicated that they
    may have been calculated in a manner inconsistent with our rules.

6.  Pursuant to sections 1.108 and 0.291 of the Commission's rules,[^4]
    we reconsider on our own motion our decision to suspend and
    investigate Ameritech's, Frontier of Rochester's, PacBell's, Qwest's
    and Sprint Nevada's tariff rates for the MLB SLC. We find that
    Frontier of Rochester correctly computed its rate in accordance with
    section 61.48(m)(2)(vi) of the Commission's rules regarding addition
    of pooled revenue to the MLB SLC.[^5] Ameritech, PacBell, Qwest and
    Sprint Nevada have revised their MLB SLC rates and have filed
    requests for special permission to correct their respective tariff
    transmittals.[^6] We find that Frontier of Rochester's proposed MLB
    SLC rate and the other LECs' revised MLB SLC rates are in compliance
    with our rules. We therefore decline to investigate Ameritech
    Transmittal Number 1270, Frontier of Rochester Transmittal Number
    48, PacBell Transmittal Number 37, Qwest Transmittal Numbers 76 and
    80, and Sprint Transmittal Number 153.

# ORDERING CLAUSES

7.  Accordingly, IT IS ORDERED that, pursuant to sections 0.91, 0.291
    and 1.108 of the Commission's rules, 47 C.F.R. §§ 0.91, 0.291,
    1.108, we reconsider on our own motion our decision in the *2001
    Annual Access Tariff Filings Suspension Order* to suspend and
    investigate the revised tariff rates for the multi-line business
    subscriber line charge of Ameritech Operating Companies, Transmittal
    Number 1270; Frontier Telephone of Rochester, Inc., Transmittal
    Number 48; Pacific Bell Telephone Company, Transmittal Number 37;
    Qwest Communications, Inc., Transmittal Numbers 76 and 80; and
    Sprint Local Telephone Companies-Nevada, Transmittal Number 153.

8.  IT IS FURTHER ORDERED that, pursuant to sections 0.91 and 0.291 of
    the Commission's rules, 47 C.F.R. §§ 0.91, 0.291, the investigation
    and accounting order imposed in CCB/CPD File No. 01-08 IS TERMINATED
    with respect to Ameritech Operating Companies; Frontier Telephone of
    Rochester, Inc.; Pacific Bell Telephone Company; Qwest
    Communications, Inc.; and Sprint Local Telephone Companies-Nevada,
    as indicated in this Order.

    FEDERAL COMMUNICATIONS COMMISSION

    Jane E. Jackson

    Chief, Competitive Pricing Division

[^1]: *2001 Annual Access Tariff Filings*, CCB/CPD File No. 01-08,
    Memorandum Opinion and Order, DA 01-1563 (Comp. Pric. Div., rel.
    July 2, 2001) (*2001 Annual Access Tariff Filings Suspension
    Order*).

[^2]: *2001 Annual Access Tariff Filings Suspension Order* at para. 7.

[^3]: 47 C.F.R. § 69.152(k)(1). The MLB SLC will be frozen until the
    study area's MLB presubscribed interexchange carrier charge (PICC)
    and carrier common line (CCL) charge are eliminated, unless the LEC
    reduces the rate through a voluntary reduction. *See* Note to
    paragraph (k)(1) of 47 C.F.R. § 69.152.

[^4]: 47 C.F.R. §§ 0.291, 1.108.

[^5]: 47 C.F.R. § 61.48(m)(2)(vi).

[^6]: *See* Letter from Patrick R. Doherty, SBC Communications, Inc., to
    Magalie Roman Salas, Secretary, Federal Communications Commission
    (July 25, 2001) (Ameritech Transmittal No. 1275); Letter from
    Patrick H. Doherty, SBC Communications, Inc., to Magalie Roman
    Salas, Secretary, Federal Communications Commission (July 27, 2001)
    (PacBell Transmittal No. 42); Letter from Bill Johnston, Executive
    Director, Qwest, to Secretary, Federal Communications Commission
    (July 10, 2001) (Transmittal No. 83); Letter from Rudolph R. Povirk,
    Jr., Director-Carrier Tariffs, Sprint Local Telecommunications
    Division, to Secretary, Federal Communications Commission (July 24,
    2001) (Transmittal No. 161).