FCC Regulation Document

Part: 
Topic: C

47 CFR Part 51 (up to date as of 2/20/2024)
                                                                            47 CFR Part 51 (Feb. 20, 2024)
Interconnection

This content is from the eCFR and is authoritative but unofficial.

Title 47 —Telecommunication
Chapter I —Federal Communications Commission
Subchapter B —Common Carrier Services

Part 51            Interconnection
  Subpart A General Information
      § 51.1 Basis and purpose.
      § 51.3 Applicability to negotiated agreements.
      § 51.5 Terms and definitions.
  Subpart B Telecommunications Carriers
      § 51.100 General duty.
  Subpart C Obligations of All Local Exchange Carriers
      § 51.201 Resale.
      § 51.203 Number portability.
      § 51.205 Dialing parity: General.
      § 51.207 Local dialing parity.
      § 51.217 Nondiscriminatory access: Telephone numbers, operator services, directory
               assistance services, and directory listings.
      § 51.219 Access to rights of way.
      § 51.221 Reciprocal compensation.
      § 51.223 Application of additional requirements.
      § 51.230 Presumption of acceptability for deployment of an advanced services loop
               technology.
      § 51.231 Provision of information on advanced services deployment.
      § 51.232 Binder group management.
      § 51.233 Significant degradation of services caused by deployment of advanced services.
  Subpart D Additional Obligations of Incumbent Local Exchange Carriers
      § 51.301 Duty to negotiate.
      § 51.303 Preexisting agreements.
      § 51.305 Interconnection.
      § 51.307 Duty to provide access on an unbundled basis to network elements.
      § 51.309 Use of unbundled network elements.
      § 51.311 Nondiscriminatory access to unbundled network elements.
      § 51.313 Just, reasonable and nondiscriminatory terms and conditions for the provision of
               unbundled network elements.
      § 51.315 Combination of unbundled network elements.
      § 51.316 Conversion of unbundled network elements and services.

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       § 51.317    Standards for requiring the unbundling of network elements.
       § 51.318    Eligibility criteria for access to certain unbundled network elements.
       § 51.319    Specific unbundling requirements.
       § 51.320    Assumption of responsibility by the Commission.
       § 51.321    Methods of obtaining interconnection and access to unbundled elements under
                   section 251 of the Act.
       § 51.323    Standards for physical collocation and virtual collocation.
       § 51.325    Notice of network changes: Public notice requirement.
       § 51.327    Notice of network changes: Content of notice.
       § 51.329    Notice of network changes: Methods for providing notice.
       § 51.331    Notice of network changes: Timing of notice.
       § 51.333    Notice of network changes: Short term notice, objections thereto and objections to
                   copper retirement notices.
     § 51.335      Notice of network changes: Confidential or proprietary information.
   Subpart E       Exemptions, Suspensions, and Modifications of Requirements of
                   Section 251 of the Act
     § 51.401      State authority.
     § 51.403      Carriers eligible for suspension or modification under section 251(f)(2) of the Act.
     § 51.405      Burden of proof.
   Subpart F       Pricing of Elements
     § 51.501      Scope.
     § 51.503      General pricing standard.
     § 51.505      Forward-looking economic cost.
     § 51.507      General rate structure standard.
     § 51.509      Rate structure standards for specific elements.
     § 51.511      Forward-looking economic cost per unit.
     § 51.513      Proxies for forward-looking economic cost.
     § 51.515      Application of access charges.
   Subpart G       Resale
     § 51.601      Scope of resale rules.
     § 51.603      Resale obligation of all local exchange carriers.
     § 51.605      Additional obligations of incumbent local exchange carriers.
     § 51.607      Wholesale pricing standard.
     § 51.609      Determination of avoided retail costs.
     § 51.611      Interim wholesale rates.
     § 51.613      Restrictions on resale.
     § 51.615      Withdrawal of services.
     § 51.617      Assessment of end user common line charge on resellers.
   Subpart H       Reciprocal Compensation for Transport and Termination of

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                Telecommunications Traffic
     § 51.700 Purpose of this subpart.
     § 51.701 Scope of transport and termination pricing rules.
     § 51.703 Non-Access reciprocal compensation obligation of LECs.
     § 51.705 LECs' rates for transport and termination.
     § 51.707 [Reserved]
     § 51.709 Rate structure for transport and termination.
     § 51.711 Symmetrical reciprocal compensation.
     § 51.713 Bill-and-keep arrangements.
     § 51.715 Interim transport and termination pricing.
     § 51.717 [Reserved]
   Subpart I Procedures for Implementation of Section 252 of the Act
     § 51.801 Commission action upon a state commission's failure to act to carry out its
                responsibility under section 252 of the Act.
     § 51.803 Procedures for Commission notification of a state commission's failure to act.
     § 51.805 The Commission's authority over proceedings and matters.
     § 51.807 Arbitration and mediation of agreements by the Commission pursuant to section
                252(e)(5) of the Act.
     § 51.809 Availability of agreements to other telecommunications carriers under section 252(i)
                of the Act.
   Subpart J Transitional Access Service Pricing
     § 51.901 Purpose and scope of transitional access service pricing rules.
     § 51.903 Definitions.
     § 51.905 Implementation.
     § 51.907 Transition of price cap carrier access charges.
     § 51.909 Transition of rate-of-return carrier access charges.
     § 51.911 Access reciprocal compensation rates for competitive LECs.
     § 51.913 Transition for VoIP-PSTN traffic.
     § 51.914 Additional provisions applicable to Access Stimulation traffic.
     § 51.915 Recovery mechanism for price cap carriers.
     § 51.917 Revenue recovery for Rate-of-Return Carriers.
     § 51.919 Reporting and monitoring.

PART 51—INTERCONNECTION
Authority: 47 U.S.C. 151–55, 201–05, 207–09, 218, 225–27, 251–52, 271, 332 unless otherwise noted.

Source: 61 FR 45619, Aug. 29, 1996, unless otherwise noted.

Subpart A—General Information
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                                                                                                            47 CFR 51.1
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§ 51.1 Basis and purpose.
     (a) Basis. These rules are issued pursuant to the Communications Act of 1934, as amended.

     (b) Purpose. The purpose of these rules is to implement sections 251 and 252 of the Communications Act of
         1934, as amended, 47 U.S.C. 251 and 252.

§ 51.3 Applicability to negotiated agreements.
To the extent provided in section 252(e)(2)(A) of the Act, a state commission shall have authority to approve an
interconnection agreement adopted by negotiation even if the terms of the agreement do not comply with the
requirements of this part.

§ 51.5 Terms and definitions.
Terms used in this part have the following meanings:

    Act. The Communications Act of 1934, as amended.

    Advanced intelligent network. Advanced intelligent network is a telecommunications network architecture in
         which call processing, call routing, and network management are provided by means of centralized
         databases located at points in an incumbent local exchange carrier's network.

    Advanced services. The term “advanced services” is defined as high speed, switched, broadband, wireline
         telecommunications capability that enables users to originate and receive high-quality voice, data,
         graphics or video telecommunications using any technology.

    Arbitration, final offer. Final offer arbitration is a procedure under which each party submits a final offer
           concerning the issues subject to arbitration, and the arbitrator selects, without modification, one of the
           final offers by the parties to the arbitration or portions of both such offers. “Entire package final offer
           arbitration,” is a procedure under which the arbitrator must select, without modification, the entire
           proposal submitted by one of the parties to the arbitration. “Issue-by-issue final offer arbitration,” is a
           procedure under which the arbitrator must select, without modification, on an issue-by-issue basis, one of
           the proposals submitted by the parties to the arbitration.

    Billing. Billing involves the provision of appropriate usage data by one telecommunications carrier to another to
           facilitate customer billing with attendant acknowledgements and status reports. It also involves the
           exchange of information between telecommunications carriers to process claims and adjustments.

    Binder or binder group. Copper pairs bundled together, generally in groups of 25, 50 or 100.

    Business line. A business line is an incumbent LEC-owned switched access line used to serve a business
          customer, whether by the incumbent LEC itself or by a competitive LEC that leases the line from the
          incumbent LEC. The number of business lines in a wire center shall equal the sum of all incumbent LEC
          business switched access lines, plus the sum of all UNE loops connected to that wire center, including
          UNE loops provisioned in combination with other unbundled elements. Among these requirements,
          business line tallies:

           (1) Shall include only those access lines connecting end-user customers with incumbent LEC end-
               offices for switched services,

           (2) Shall not include non-switched special access lines,

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                                                                                            47 CFR 51.5 “Business line” (3)
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           (3) Shall account for ISDN and other digital access lines by counting each 64 kbps-equivalent as one
               line. For example, a DS1 line corresponds to 24 64 kbps-equivalents, and therefore to 24 “business
               lines.”

    Commercial Mobile Radio Service (CMRS). CMRS has the same meaning as that term is defined in § 20.3 of this
        chapter.

    Commingling. Commingling means the connecting, attaching, or otherwise linking of an unbundled network
        element, or a combination of unbundled network elements, to one or more facilities or services that a
        requesting telecommunications carrier has obtained at wholesale from an incumbent LEC, or the
        combining of an unbundled network element, or a combination of unbundled network elements, with one
        or more such facilities or services. Commingle means the act of commingling.

    Commission. Commission refers to the Federal Communications Commission.

    Day. Day means calendar day.

    Dialing parity. The term dialing parity means that a person that is not an affiliate of a local exchange carrier is
           able to provide telecommunications services in such a manner that customers have the ability to route
           automatically, without the use of any access code, their telecommunications to the telecommunications
           service provider of the customer's designation from among 2 or more telecommunications service
           providers (including such local exchange carrier).

    Directory assistance service. Directory assistance service includes, but is not limited to, making available to
          customers, upon request, information contained in directory listings.

    Directory listings. Directory listings are any information:

           (1) Identifying the listed names of subscribers of a telecommunications carrier and such subscriber's
               telephone numbers, addresses, or primary advertising classifications (as such classifications are
               assigned at the time of the establishment of such service), or any combination of such listed names,
               numbers, addresses or classifications; and

           (2) That the telecommunications carrier or an affiliate has published, caused to be published, or
               accepted for publication in any directory format.

    Downstream database. A downstream database is a database owned and operated by an individual carrier for
         the purpose of providing number portability in conjunction with other functions and services.

    Enhanced extended link. An enhanced extended link or EEL consists of a combination of an unbundled loop and
         unbundled dedicated transport, together with any facilities, equipment, or functions necessary to combine
         those network elements.

    Equipment necessary for interconnection or access to unbundled network elements. For purposes of section
         251(c)(2) of the Act, the equipment used to interconnect with an incumbent local exchange carrier's
         network for the transmission and routing of telephone exchange service, exchange access service, or
         both. For the purposes of section 251(c)(3) of the Act, the equipment used to gain access to an
         incumbent local exchange carrier's unbundled network elements for the provision of a
         telecommunications service.

    Fiber-based collocator. A fiber-based collocator is any carrier, unaffiliated with the incumbent LEC, that maintains
           a collocation arrangement in an incumbent LEC wire center, with active electrical power supply, and
           operates a fiber-optic cable or comparable transmission facility that

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                                                                                  47 CFR 51.5 “Fiber-based collocator” (1)
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           (1) Terminates at a collocation arrangement within the wire center;

           (2) Leaves the incumbent LEC wire center premises; and

           (3) Is owned by a party other than the incumbent LEC or any affiliate of the incumbent LEC, except as set
               forth in this paragraph. Dark fiber obtained from an incumbent LEC on an indefeasible right of use
               basis shall be treated as non-incumbent LEC fiber-optic cable. Two or more affiliated fiber-based
               collocators in a single wire center shall collectively be counted as a single fiber-based collocator. For
               purposes of this paragraph, the term affiliate is defined by 47 U.S.C. 153(1) and any relevant
               interpretation in this Title.

    Incumbent Local Exchange Carrier (Incumbent LEC). With respect to an area, the local exchange carrier that:

           (1) On February 8, 1996, provided telephone exchange service in such area; and

           (2)

                 (i)   On February 8, 1996, was deemed to be a member of the exchange carrier association pursuant
                       to § 69.601(b) of this chapter; or

                 (ii) Is a person or entity that, on or after February 8, 1996, became a successor or assign of a
                      member described in paragraph (2)(i) of this section.

    Information services. The term information services means the offering of a capability for generating, acquiring,
          storing, transforming, processing, retrieving, utilizing, or making available information via
          telecommunications, and includes electronic publishing, but does not include any use of any such
          capability for the management, control, or operation of a telecommunications system or the management
          of a telecommunications service.

    Interconnection. Interconnection is the linking of two networks for the mutual exchange of traffic. This term does
           not include the transport and termination of traffic.

    Known disturber. An advanced services technology that is prone to cause significant interference with other
         services deployed in the network.

    Intermodal. The term intermodal refers to facilities or technologies other than those found in traditional
          telephone networks, but that are utilized to provide competing services. Intermodal facilities or
          technologies include, but are not limited to, traditional or new cable plant, wireless technologies, and
          power line technologies.

    Local Access and Transport Area (LATA). A Local Access and Transport Area is a contiguous geographic area—

           (1) Established before February 8, 1996 by a Bell operating company such that no exchange area
               includes points within more than 1 metropolitan statistical area, consolidated metropolitan
               statistical area, or State, except as expressly permitted under the AT&T Consent Decree; or

           (2) Established or modified by a Bell operating company after February 8, 1996 and approved by the
               Commission.

    Local Exchange Carrier (LEC). A LEC is any person that is engaged in the provision of telephone exchange
          service or exchange access. Such term does not include a person insofar as such person is engaged in
          the provision of a commercial mobile service under section 332(c) of the Act, except to the extent that the
          Commission finds that such service should be included in the definition of the such term.

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47 CFR Part 51 (up to date as of 2/20/2024)                       47 CFR 51.5 “Maintenance and repair. Maintenance and
Interconnection                                                                                                repair”

    Maintenance and repair. Maintenance and repair involves the exchange of information between
          telecommunications carriers where one initiates a request for maintenance or repair of existing products
          and services or unbundled network elements or combination thereof from the other with attendant
          acknowledgements and status reports.

    Meet point. A meet point is a point of interconnection between two networks, designated by two
          telecommunications carriers, at which one carrier's responsibility for service begins and the other carrier's
          responsibility ends.

    Meet point interconnection arrangement. A meet point interconnection arrangement is an arrangement by which
          each telecommunications carrier builds and maintains its network to a meet point.

    Mobile wireless service. A mobile wireless service is any mobile wireless telecommunications service, including
          any commercial mobile radio service.

    Multi-functional equipment. Multi-functional equipment is equipment that combines one or more functions that
           are necessary for interconnection or access to unbundled network elements with one or more functions
           that would not meet that standard as stand-alone functions.

    Network element. A network element is a facility or equipment used in the provision of a telecommunications
         service. Such term also includes, but is not limited to, features, functions, and capabilities that are
         provided by means of such facility or equipment, including but not limited to, subscriber numbers,
         databases, signaling systems, and information sufficient for billing and collection or used in the
         transmission, routing, or other provision of a telecommunications service.

    Operator services. Operator services are any automatic or live assistance to a consumer to arrange for billing or
          completion of a telephone call. Such services include, but are not limited to, busy line verification,
          emergency interrupt, and operator-assisted directory assistance services.

    Physical collocation. Physical collocation is an offering by an incumbent LEC that enables a requesting
          telecommunications carrier to:

           (1) Place its own equipment to be used for interconnection or access to unbundled network elements
               within or upon an incumbent LEC's premises;

           (2) Use such equipment to interconnect with an incumbent LEC's network facilities for the transmission
               and routing of telephone exchange service, exchange access service, or both, or to gain access to an
               incumbent LEC's unbundled network elements for the provision of a telecommunications service;

           (3) Enter those premises, subject to reasonable terms and conditions, to install, maintain, and repair
               equipment necessary for interconnection or access to unbundled elements; and

           (4) Obtain reasonable amounts of space in an incumbent LEC's premises, as provided in this part, for the
               equipment necessary for interconnection or access to unbundled elements, allocated on a first-
               come, first-served basis.

    Premises. Premises refers to an incumbent LEC's central offices and serving wire centers; all buildings or similar
         structures owned, leased, or otherwise controlled by an incumbent LEC that house its network facilities;
         all structures that house incumbent LEC facilities on public rights-of-way, including but not limited to
         vaults containing loop concentrators or similar structures; and all land owned, leased, or otherwise
         controlled by an incumbent LEC that is adjacent to these central offices, wire centers, buildings, and
         structures.

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                                                                                  47 CFR 51.5 “Pre-ordering and ordering”
Interconnection

    Pre-ordering and ordering. Pre-ordering and ordering includes the exchange of information between
          telecommunications carriers about: current or proposed customer products and services; or unbundled
          network elements, or some combination thereof. This information includes loop qualification information,
          such as the composition of the loop material, including but not limited to: fiber optics or copper; the
          existence, location and type of any electronic or other equipment on the loop, including but not limited to,
          digital loop carrier or other remote concentration devices, feeder/distribution interfaces, bridge taps, load
          coils, pair-gain devices, disturbers in the same or adjacent binder groups; the loop length, including the
          length and location of each type of transmission media; the wire gauge(s) of the loop; and the electrical
          parameters of the loop, which may determine the suitability of the loop for various technologies.

    Provisioning. Provisioning involves the exchange of information between telecommunications carriers where
          one executes a request for a set of products and services or unbundled network elements or combination
          thereof from the other with attendant acknowledgements and status reports.

    Rural telephone company. A rural telephone company is a LEC operating entity to the extent that such entity:

           (1) Provides common carrier service to any local exchange carrier study area that does not include
               either:

                 (i)   Any incorporated place of 10,000 inhabitants or more, or any part thereof, based on the most
                       recently available population statistics of the Bureau of the Census; or

                 (ii) Any territory, incorporated or unincorporated, included in an urbanized area, as defined by the
                      Bureau of the Census as of August 10, 1993;

           (2) Provides telephone exchange service, including exchange access, to fewer than 50,000 access lines;

           (3) Provides telephone exchange service to any local exchange carrier study area with fewer than
               100,000 access lines; or

           (4) Has less than 15 percent of its access lines in communities of more than 50,000 on February 8,
               1996.

    Service control point. A service control point is a computer database in the public switched network which
          contains information and call processing instructions needed to process and complete a telephone call.

    Service creation environment. A service creation environment is a computer containing generic call processing
          software that can be programmed to create new advanced intelligent network call processing services.

    Service provider. A service provider is a provider of telecommunications services or a provider of information
          services.

    Signal transfer point. A signal transfer point is a packet switch that acts as a routing hub for a signaling network
          and transfers messages between various points in and among signaling networks.

    State. The term state includes the District of Columbia and the Territories and possessions.

    State commission. A state commission means the commission, board, or official (by whatever name designated)
           which under the laws of any state has regulatory jurisdiction with respect to intrastate operations of
           carriers. As referenced in this part, this term may include the Commission if it assumes responsibility for
           a proceeding or matter, pursuant to section 252(e)(5) of the Act or § 51.320. This term shall also include
           any person or persons to whom the state commission has delegated its authority under sections 251 and
           252 of the Act and this part.

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                                                                                         47 CFR 51.5 “State proceeding”
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    State proceeding. A state proceeding is any administrative proceeding in which a state commission may approve
          or prescribe rates, terms, and conditions including, but not limited to, compulsory arbitration pursuant to
          section 252(b) of the Act, review of a Bell operating company statement of generally available terms
          pursuant to section 252(f) of the Act, and a proceeding to determine whether to approve or reject an
          agreement adopted by arbitration pursuant to section 252(e) of the Act.

    Technically feasible. Interconnection, access to unbundled network elements, collocation, and other methods of
          achieving interconnection or access to unbundled network elements at a point in the network shall be
          deemed technically feasible absent technical or operational concerns that prevent the fulfillment of a
          request by a telecommunications carrier for such interconnection, access, or methods. A determination of
          technical feasibility does not include consideration of economic, accounting, billing, space, or site
          concerns, except that space and site concerns may be considered in circumstances where there is no
          possibility of expanding the space available. The fact that an incumbent LEC must modify its facilities or
          equipment to respond to such request does not determine whether satisfying such request is technically
          feasible. An incumbent LEC that claims that it cannot satisfy such request because of adverse network
          reliability impacts must prove to the state commission by clear and convincing evidence that such
          interconnection, access, or methods would result in specific and significant adverse network reliability
          impacts.

    Telecommunications carrier. A telecommunications carrier is any provider of telecommunications services,
          except that such term does not include aggregators of telecommunications services (as defined in
          section 226 of the Act). A telecommunications carrier shall be treated as a common carrier under the Act
          only to the extent that it is engaged in providing telecommunications services, except that the
          Commission shall determine whether the provision of fixed and mobile satellite service shall be treated as
          common carriage. This definition includes CMRS providers, interexchange carriers (IXCs) and, to the
          extent they are acting as telecommunications carriers, companies that provide both telecommunications
          and information services. Private Mobile Radio Service providers are telecommunications carriers to the
          extent they provide domestic or international telecommunications for a fee directly to the public.

    Telecommunications service. The term telecommunications service refers to the offering of telecommunications
          for a fee directly to the public, or to such classes of users as to be effectively available directly to the
          public, regardless of the facilities used.

    Telephone exchange service. A telephone exchange service is:

           (1) A service within a telephone exchange, or within a connected system of telephone exchanges within
               the same exchange area operated to furnish to subscribers intercommunicating service of the
               character ordinarily furnished by a single exchange, and which is covered by the exchange service
               charge, or

           (2) A comparable service provided through a system of switches, transmission equipment, or other
               facilities (or combination thereof) by which a subscriber can originate and terminate a
               telecommunications service.

    Telephone toll service. The term telephone toll service refers to telephone service between stations in different
          exchange areas for which there is made a separate charge not included in contracts with subscribers for
          exchange service.

    Unreasonable dialing delay. For the same type of calls, dialing delay is “unreasonable” when the dialing delay
         experienced by the customer of a competing provider is greater than that experienced by a customer of
         the LEC providing dialing parity, or nondiscriminatory access to operator services or directory assistance.

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                                                                                          47 CFR 51.5 “Triennial Review Order”
Interconnection

    Triennial Review Order. The Triennial Review Order means the Commission's Report and Order and Order on
          Remand and Further Notice of Proposed Rulemaking in CC Docket Nos. 01–338, 96–98, and 98–147.

    Triennial Review Remand Order. The Triennial Review Remand Order is the Commission's Order on Remand in CC
          Docket Nos. 01–338 and 04–313 (released February 4, 2005).

    Virtual collocation. Virtual collocation is an offering by an incumbent LEC that enables a requesting
           telecommunications carrier to:

           (1) Designate or specify equipment to be used for interconnection or access to unbundled network
               elements to be located within or upon an incumbent LEC's premises, and dedicated to such
               telecommunications carrier's use;

           (2) Use such equipment to interconnect with an incumbent LEC's network facilities for the transmission
               and routing of telephone exchange service, exchange access service, or both, or for access to an
               incumbent LEC's unbundled network elements for the provision of a telecommunications service;
               and

           (3) Electronically monitor and control its communications channels terminating in such equipment.

    Wire center. A wire center is the location of an incumbent LEC local switching facility containing one or more
          central offices, as defined in the Appendix to part 36 of this chapter. The wire center boundaries define the
          area in which all customers served by a given wire center are located.

[61 FR 45619, Aug. 29, 1996, as amended at 61 FR 47348, Sept. 6, 1996; 64 FR 23241, Apr. 30, 1999; 65 FR 1344, Jan. 10, 2000;
65 FR 2550, Jan. 18, 2000; 65 FR 54438, Sept. 8, 2000; 66 FR 43521, Aug. 20, 2001; 68 FR 52293, Sept. 2, 2003; 70 FR 8952, Feb.
24, 2005]

Subpart B—Telecommunications Carriers
§ 51.100 General duty.
     (a) Each telecommunications carrier has the duty:

           (1) To interconnect directly or indirectly with the facilities and equipment of other telecommunications
               carriers; and

           (2) To not install network features, functions, or capabilities that do not comply with the guidelines and
               standards as provided in the Commission's rules or section 255 or 256 of the Act.

     (b) A telecommunication carrier that has interconnected or gained access under sections 251(a)(1),
         251(c)(2), or 251(c)(3) of the Act, may offer information services through the same arrangement, so long
         as it is offering telecommunications services through the same arrangement as well.

Subpart C—Obligations of All Local Exchange Carriers
§ 51.201 Resale.
The rules governing resale of services by an incumbent LEC are set forth in subpart G of this part.

§ 51.203 Number portability.
The rules governing number portability are set forth in part 52, subpart C of this chapter.

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                                                                                                             47 CFR 51.205
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§ 51.205 Dialing parity: General.
A local exchange carrier (LEC) shall provide local dialing parity to competing providers of telephone exchange
service, with no unreasonable dialing delays. Dialing parity shall be provided for originating telecommunications
services that require dialing to route a call.

[83 FR 42052, Aug. 20, 2018]

§ 51.207 Local dialing parity.
A LEC shall permit telephone exchange service customers within a local calling area to dial the same number of
digits to make a local telephone call notwithstanding the identity of the customer's or the called party's
telecommunications service provider.

[61 FR 47349, Sept. 6, 1996]

§ 51.217 Nondiscriminatory access: Telephone numbers, operator services, directory assistance
services, and directory listings.
     (a) Definitions. As used in this section, the following definitions apply:

           (1) Competing provider. A “competing provider” is a provider of telephone exchange or telephone toll
               services that seeks nondiscriminatory access from a local exchange carrier (LEC) in that LEC's
               service area.

           (2) Nondiscriminatory access. “Nondiscriminatory access” refers to access to telephone numbers,
               operator services, directory assistance and directory listings that is at least equal to the access that
               the providing local exchange carrier (LEC) itself receives. Nondiscriminatory access includes, but is
               not limited to:

                 (i)   Nondiscrimination between and among carriers in the rates, terms, and conditions of the
                       access provided; and

                 (ii) The ability of the competing provider to obtain access that is at least equal in quality to that of
                      the providing LEC.

           (3) Providing local exchange carrier (LEC). A “providing local exchange carrier” is a local exchange
               carrier (LEC) that is required to permit nondiscriminatory access to a competing provider.

     (b) General rule. A local exchange carrier (LEC) that provides operator services, directory assistance services
         or directory listings to its customers, or provides telephone numbers, shall permit competing providers of
         telephone exchange service or telephone toll service to have nondiscriminatory access to that service or
         feature, with no unreasonable dialing delays.

     (c) Specific requirements. A LEC subject to paragraph (b) of this section must also comply with the following
         requirements:

           (1) Telephone numbers. A LEC shall permit competing providers to have access to telephone numbers
               that is identical to the access that the LEC provides to itself.

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           (2) Operator services. A LEC must permit telephone service customers to connect to the operator
               services offered by that customer's chosen local service provider by dialing “0,” or “0” plus the
               desired telephone number, regardless of the identity of the customer's local telephone service
               provider.

           (3) Directory assistance services and directory listings —

                 (i)   Access to directory assistance. A LEC shall permit competing providers to have access to its
                       directory assistance services, including directory assistance databases, so that any customer
                       of a competing provider can obtain directory listings, except as provided in paragraph (c)(3)(iv)
                       of this section, on a nondiscriminatory basis, notwithstanding the identity of the customer's
                       local service provider, or the identity of the provider for the customer whose listing is requested.
                       A LEC must supply access to directory assistance in the manner specified by the competing
                       provider, including transfer of the LECs' directory assistance databases in readily accessible
                       magnetic tape, electronic or other convenient format, as provided in paragraph (c)(3)(iii) of this
                       section. Updates to the directory assistance database shall be made in the same format as the
                       initial transfer (unless the requesting LEC requests otherwise), and shall be performed in a
                       timely manner, taking no longer than those made to the providing LEC's own database. A LEC
                       shall accept the listings of those customers served by competing providers for inclusion in its
                       directory assistance/operator services databases.

                 (ii) Access to directory listings. A LEC that compiles directory listings shall share directory listings
                      with competing providers in the manner specified by the competing provider, including readily
                      accessible tape or electronic formats, as provided in paragraph (c)(3)(iii) of this section. Such
                      data shall be provided in a timely fashion.

                (iii) Format. A LEC shall provide access to its directory assistance services, including directory
                      assistance databases, and to its directory listings in any format the competing provider
                      specifies, if the LEC's internal systems can accommodate that format.

                       (A) If a LEC's internal systems do not permit it provide directory assistance or directory
                           listings in the format the specified by the competing provider, the LEC shall:

                            (1) Within thirty days of receiving the request, inform the competing provider that the
                                requested format cannot be accommodated and tell the requesting provider which
                                formats can be accommodated; and

                            (2) Provide the requested directory assistance or directory listings in the format the
                                competing provider chooses from among the available formats.

                       (B) [Reserved]

                (iv) Unlisted numbers. A LEC shall not provide access to unlisted telephone numbers, or other
                     information that its customer has asked the LEC not to make available, with the exception of
                     customer name and address. The LEC shall ensure that access is permitted to the same
                     directory information, including customer name and address, that is available to its own
                     directory assistance customers.

                 (v) Adjuncts to services. Operator services and directory assistance services must be made
                     available to competing providers in their entirety, including access to any adjunct features (e.g.,
                     rating tables or customer information databases) necessary to allow competing providers full
                     use of these services.

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     (d) Branding of operator services and directory assistance services. The refusal of a providing local exchange
         carrier (LEC) to comply with the reasonable request of a competing provider that the providing LEC
         rebrand its operator services and directory assistance, or remove its brand from such services, creates a
         presumption that the providing LEC is unlawfully restricting access to its operator services and directory
         assistance. The providing LEC can rebut this presumption by demonstrating that it lacks the capability to
         comply with the competing provider's request.

     (e) Disputes —

           (1) Disputes involving nondiscriminatory access. In disputes involving nondiscriminatory access to
               operator services, directory assistance services, or directory listings, a providing LEC shall bear the
               burden of demonstrating with specificity:

                 (i)   That it is permitting nondiscriminatory access, and

                 (ii) That any disparity in access is not caused by factors within its control. “Factors within its
                      control” include, but are not limited to, physical facilities, staffing, the ordering of supplies or
                      equipment, and maintenance.

           (2) Disputes involving unreasonable dialing delay. In disputes between providing local exchange carriers
               (LECs) and competing providers involving unreasonable dialing delay in the provision of access to
               operator services and directory assistance, the burden of proof is on the providing LEC to
               demonstrate with specificity that it is processing the calls of the competing provider's customers on
               terms equal to that of similar calls from the providing LEC's own customers.

[61 FR 47350, Sept. 6, 1996, as amended at 64 FR 51911, Sept. 27, 1999]

§ 51.219 Access to rights of way.
The rules governing access to rights of way are set forth in part 1, subpart J of this chapter.

§ 51.221 Reciprocal compensation.
The rules governing reciprocal compensation are set forth in subpart H of this part.

§ 51.223 Application of additional requirements.
     (a) A state may not impose the obligations set forth in section 251(c) of the Act on a LEC that is not
         classified as an incumbent LEC as defined in section 251(h)(1) of the Act, unless the Commission issues
         an order declaring that such LECs or classes or categories of LECs should be treated as incumbent LECs.

     (b) A state commission, or any other interested party, may request that the Commission issue an order
         declaring that a particular LEC be treated as an incumbent LEC, or that a class or category of LECs be
         treated as incumbent LECs, pursuant to section 251(h)(2) of the Act.

§ 51.230 Presumption of acceptability for deployment of an advanced services loop technology.
     (a) An advanced services loop technology is presumed acceptable for deployment under any one of the
         following circumstances, where the technology:

           (1) Complies with existing industry standards; or

           (2) Is approved by an industry standards body, the Commission, or any state commission; or

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           (3) Has been successfully deployed by any carrier without significantly degrading the performance of
               other services.

     (b) An incumbent LEC may not deny a carrier's request to deploy a technology that is presumed acceptable
         for deployment unless the incumbent LEC demonstrates to the relevant state commission that
         deployment of the particular technology will significantly degrade the performance of other advanced
         services or traditional voiceband services.

     (c) Where a carrier seeks to establish that deployment of a technology falls within the presumption of
         acceptability under paragraph (a)(3) of this section, the burden is on the requesting carrier to demonstrate
         to the state commission that its proposed deployment meets the threshold for a presumption of
         acceptability and will not, in fact, significantly degrade the performance of other advanced services or
         traditional voice band services. Upon a successful demonstration by the requesting carrier before a
         particular state commission, the deployed technology shall be presumed acceptable for deployment in
         other areas.

[65 FR 1345, Jan. 10, 2000]

§ 51.231 Provision of information on advanced services deployment.
     (a) An incumbent LEC must provide to requesting carriers that seek access to a loop or high frequency
         portion of the loop to provide advanced services:

           (1) Uses in determining which services can be deployed; and information with respect to the spectrum
               management procedures and policies that the incumbent LEC.

           (2) Information with respect to the rejection of the requesting carrier's provision of advanced services,
               together with the specific reason for the rejection; and

           (3) Information with respect to the number of loops using advanced services technology within the
               binder and type of technology deployed on those loops.

     (b) A requesting carrier that seeks access to a loop or a high frequency portion of a loop to provide advanced
         services must provide to the incumbent LEC information on the type of technology that the requesting
         carrier seeks to deploy.

           (1) Where the requesting carrier asserts that the technology it seeks to deploy fits within a generic
               power spectral density (PSD) mask, it also must provide Spectrum Class information for the
               technology.

           (2) Where a requesting carrier relies on a calculation-based approach to support deployment of a
               particular technology, it must provide the incumbent LEC with information on the speed and power at
               which the signal will be transmitted.

     (c) The requesting carrier also must provide the information required under paragraph (b) of this section
         when notifying the incumbent LEC of any proposed change in advanced services technology that the
         carrier uses on the loop.

[65 FR 1345, Jan. 10, 2000]

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§ 51.232 Binder group management.
     (a) With the exception of loops on which a known disturber is deployed, the incumbent LEC shall be
         prohibited from designating, segregating or reserving particular loops or binder groups for use solely by
         any particular advanced services loop technology.

     (b) Any party seeking designation of a technology as a known disturber should file a petition for declaratory
         ruling with the Commission seeking such designation, pursuant to § 1.2 of this chapter.

[65 FR 1346, Jan. 10, 2000]

§ 51.233 Significant degradation of services caused by deployment of advanced services.
     (a) Where a carrier claims that a deployed advanced service is significantly degrading the performance of
         other advanced services or traditional voiceband services, that carrier must notify the deploying carrier
         and allow the deploying carrier a reasonable opportunity to correct the problem. Where the carrier whose
         services are being degraded does not know the precise cause of the degradation, it must notify each
         carrier that may have caused or contributed to the degradation.

     (b) Where the degradation asserted under paragraph (a) of this section remains unresolved by the deploying
         carrier(s) after a reasonable opportunity to correct the problem, the carrier whose services are being
         degraded must establish before the relevant state commission that a particular technology deployment is
         causing the significant degradation.

     (c) Any claims of network harm presented to the deploying carrier(s) or, if subsequently necessary, the
         relevant state commission, must be supported with specific and verifiable information.

     (d) Where a carrier demonstrates that a deployed technology is significantly degrading the performance of
         other advanced services or traditional voice band services, the carrier deploying the technology shall
         discontinue deployment of that technology and migrate its customers to technologies that will not
         significantly degrade the performance of other such services.

     (e) Where the only degraded service itself is a known disturber, and the newly deployed technology satisfies
         at least one of the criteria for a presumption that it is acceptable for deployment under § 51.230, the
         degraded service shall not prevail against the newly-deployed technology.

[65 FR 1346, Jan. 10, 2000]

Subpart D—Additional Obligations of Incumbent Local Exchange Carriers
§ 51.301 Duty to negotiate.
     (a) An incumbent LEC shall negotiate in good faith the terms and conditions of agreements to fulfill the duties
         established by sections 251 (b) and (c) of the Act.

     (b) A requesting telecommunications carrier shall negotiate in good faith the terms and conditions of
         agreements described in paragraph (a) of this section.

     (c) If proven to the Commission, an appropriate state commission, or a court of competent jurisdiction, the
         following actions or practices, among others, violate the duty to negotiate in good faith:

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           (1) Demanding that another party sign a nondisclosure agreement that precludes such party from
               providing information requested by the Commission, or a state commission, or in support of a
               request for arbitration under section 252(b)(2)(B) of the Act;

           (2) Demanding that a requesting telecommunications carrier attest that an agreement complies with all
               provisions of the Act, federal regulations, or state law;

           (3) Refusing to include in an arbitrated or negotiated agreement a provision that permits the agreement
               to be amended in the future to take into account changes in Commission or state rules;

           (4) Conditioning negotiation on a requesting telecommunications carrier first obtaining state
               certifications;

           (5) Intentionally misleading or coercing another party into reaching an agreement that it would not
               otherwise have made;

           (6) Intentionally obstructing or delaying negotiations or resolutions of disputes;

           (7) Refusing throughout the negotiation process to designate a representative with authority to make
               binding representations, if such refusal significantly delays resolution of issues; and

           (8) Refusing to provide information necessary to reach agreement. Such refusal includes, but is not
               limited to:

                 (i)   Refusal by an incumbent LEC to furnish information about its network that a requesting
                       telecommunications carrier reasonably requires to identify the network elements that it needs
                       in order to serve a particular customer; and

                 (ii) Refusal by an incumbent LEC to furnish cost data that would be relevant to setting rates if the
                      parties were in arbitration.

[61 FR 45619, Aug. 29, 1996, as amended at 68 FR 52294, Sept. 2, 2003]

§ 51.303 Preexisting agreements.
     (a) All interconnection agreements between an incumbent LEC and a telecommunications carrier, including
         those negotiated before February 8, 1996, shall be submitted by the parties to the appropriate state
         commission for approval pursuant to section 252(e) of the Act.

     (b) Interconnection agreements negotiated before February 8, 1996, between Class A carriers, as defined by §
         32.11(a)(1) of this chapter, shall be filed by the parties with the appropriate state commission no later
         than June 30, 1997, or such earlier date as the state commission may require.

     (c) If a state commission approves a preexisting agreement, it shall be made available to other parties in
         accordance with section 252(i) of the Act and § 51.809 of this part. A state commission may reject a
         preexisting agreement on the grounds that it is inconsistent with the public interest, or for other reasons
         set forth in section 252(e)(2)(A) of the Act.

§ 51.305 Interconnection.
     (a) An incumbent LEC shall provide, for the facilities and equipment of any requesting telecommunications
         carrier, interconnection with the incumbent LEC's network:

           (1) For the transmission and routing of telephone exchange traffic, exchange access traffic, or both;

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           (2) At any technically feasible point within the incumbent LEC's network including, at a minimum:

                 (i)   The line-side of a local switch;

                 (ii) The trunk-side of a local switch;

                (iii) The trunk interconnection points for a tandem switch;

                (iv) Central office cross-connect points;

                 (v) Out-of-band signaling transfer points necessary to exchange traffic at these points and access
                     call-related databases; and

                (vi) The points of access to unbundled network elements as described in § 51.319;

           (3) That is at a level of quality that is equal to that which the incumbent LEC provides itself, a subsidiary,
               an affiliate, or any other party. At a minimum, this requires an incumbent LEC to design
               interconnection facilities to meet the same technical criteria and service standards that are used
               within the incumbent LEC's network. This obligation is not limited to a consideration of service
               quality as perceived by end users, and includes, but is not limited to, service quality as perceived by
               the requesting telecommunications carrier; and

           (4) On terms and conditions that are just, reasonable, and nondiscriminatory in accordance with the
               terms and conditions of any agreement, the requirements of sections 251 and 252 of the Act, and
               the Commission's rules including, but not limited to, offering such terms and conditions equally to all
               requesting telecommunications carriers, and offering such terms and conditions that are no less
               favorable than the terms and conditions upon which the incumbent LEC provides such
               interconnection to itself. This includes, but is not limited to, the time within which the incumbent LEC
               provides such interconnection.

     (b) A carrier that requests interconnection solely for the purpose of originating or terminating its
         interexchange traffic on an incumbent LEC's network and not for the purpose of providing to others
         telephone exchange service, exchange access service, or both, is not entitled to receive interconnection
         pursuant to section 251(c)(2) of the Act.

     (c) Previous successful interconnection at a particular point in a network, using particular facilities,
         constitutes substantial evidence that interconnection is technically feasible at that point, or at
         substantially similar points, in networks employing substantially similar facilities. Adherence to the same
         interface or protocol standards shall constitute evidence of the substantial similarity of network facilities.

     (d) Previous successful interconnection at a particular point in a network at a particular level of quality
         constitutes substantial evidence that interconnection is technically feasible at that point, or at
         substantially similar points, at that level of quality.

     (e) An incumbent LEC that denies a request for interconnection at a particular point must prove to the state
         commission that interconnection at that point is not technically feasible.

     (f) If technically feasible, an incumbent LEC shall provide two-way trunking upon request.

     (g) An incumbent LEC shall provide to a requesting telecommunications carrier technical information about
         the incumbent LEC's network facilities sufficient to allow the requesting carrier to achieve interconnection
         consistent with the requirements of this section.

[61 FR 45619, Aug. 29, 1996, as amended at 61 FR 47351, Sept. 6, 1996; 68 FR 52294, Sept. 2, 2003]

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§ 51.307 Duty to provide access on an unbundled basis to network elements.
     (a) An incumbent LEC shall provide, to a requesting telecommunications carrier for the provision of a
         telecommunications service, nondiscriminatory access to network elements on an unbundled basis at
         any technically feasible point on terms and conditions that are just, reasonable, and nondiscriminatory in
         accordance with the terms and conditions of any agreement, the requirements of sections 251 and 252 of
         the Act, and the Commission's rules.

     (b) The duty to provide access to unbundled network elements pursuant to section 251(c)(3) of the Act
         includes a duty to provide a connection to an unbundled network element independent of any duty to
         provide interconnection pursuant to this part and section 251(c)(2) of the Act.

     (c) An incumbent LEC shall provide a requesting telecommunications carrier access to an unbundled network
         element, along with all of the unbundled network element's features, functions, and capabilities, in a
         manner that allows the requesting telecommunications carrier to provide any telecommunications service
         that can be offered by means of that network element.

     (d) An incumbent LEC shall provide a requesting telecommunications carrier access to the facility or
         functionality of a requested network element separate from access to the facility or functionality of other
         network elements, for a separate charge.

     (e) An incumbent LEC shall provide to a requesting telecommunications carrier technical information about
         the incumbent LEC's network facilities sufficient to allow the requesting carrier to achieve access to
         unbundled network elements consistent with the requirements of this section.

[61 FR 45619, Aug. 29, 1996, as amended at 61 FR 47351, Sept. 6, 1996]

§ 51.309 Use of unbundled network elements.
     (a) Except as provided in § 51.318, an incumbent LEC shall not impose limitations, restrictions, or
         requirements on requests for, or the use of, unbundled network elements for the service a requesting
         telecommunications carrier seeks to offer.

     (b) A requesting telecommunications carrier may not access an unbundled network element for the exclusive
         provision of mobile wireless services or interexchange services.

     (c) A telecommunications carrier purchasing access to an unbundled network facility is entitled to exclusive
         use of that facility for a period of time, or when purchasing access to a feature, function, or capability of a
         facility, a telecommunications carrier is entitled to use of that feature, function, or capability for a period
         of time. A telecommunications carrier's purchase of access to an unbundled network element does not
         relieve the incumbent LEC of the duty to maintain, repair, or replace the unbundled network element.

     (d) A requesting telecommunications carrier that accesses and uses an unbundled network element
         consistent with paragraph (b) of this section may provide any telecommunications services over the same
         unbundled network element.

     (e) Except as provided in § 51.318, an incumbent LEC shall permit a requesting telecommunications carrier to
         commingle an unbundled network element or a combination of unbundled network elements with
         wholesale services obtained from an incumbent LEC.

     (f) Upon request, an incumbent LEC shall perform the functions necessary to commingle an unbundled
         network element or a combination of unbundled network elements with one or more facilities or services
         that a requesting telecommunications carrier has obtained at wholesale from an incumbent LEC.
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     (g) An incumbent LEC shall not deny access to an unbundled network element or a combination of unbundled
         network elements on the grounds that one or more of the elements:

           (1) Is connected to, attached to, linked to, or combined with, a facility or service obtained from an
               incumbent LEC; or

           (2) Shares part of the incumbent LEC's network with access services or inputs for mobile wireless
               services and/or interexchange services.

[61 FR 45619, Aug. 29, 1996, as amended at 68 FR 52294, Sept. 2, 2003; 70 FR 8952, Feb. 24, 2005]

§ 51.311 Nondiscriminatory access to unbundled network elements.
     (a) The quality of an unbundled network element, as well as the quality of the access to the unbundled
         network element, that an incumbent LEC provides to a requesting telecommunications carrier shall be the
         same for all telecommunications carriers requesting access to that network element.

     (b) To the extent technically feasible, the quality of an unbundled network element, as well as the quality of
         the access to such unbundled network element, that an incumbent LEC provides to a requesting
         telecommunications carrier shall be at least equal in quality to that which the incumbent LEC provides to
         itself. If an incumbent LEC fails to meet this requirement, the incumbent LEC must prove to the state
         commission that it is not technically feasible to provide the requested unbundled network element, or to
         provide access to the requested unbundled network element, at a level of quality that is equal to that
         which the incumbent LEC provides to itself.

     (c) Previous successful access to an unbundled element at a particular point in a network, using particular
         facilities, is substantial evidence that access is technically feasible at that point, or at substantially similar
         points, in networks employing substantially similar facilities. Adherence to the same interface or protocol
         standards shall constitute evidence of the substantial similarity of network facilities.

     (d) Previous successful provision of access to an unbundled element at a particular point in a network at a
         particular level of quality is substantial evidence that access is technically feasible at that point, or at
         substantially similar points, at that level of quality.

[61 FR 45619, Aug. 29, 1996, as amended at 68 FR 52294, Sept. 2, 2003]

§ 51.313 Just, reasonable and nondiscriminatory terms and conditions for the provision of
unbundled network elements.
     (a) The terms and conditions pursuant to which an incumbent LEC provides access to unbundled network
         elements shall be offered equally to all requesting telecommunications carriers.

     (b) Where applicable, the terms and conditions pursuant to which an incumbent LEC offers to provide access
         to unbundled network elements, including but not limited to, the time within which the incumbent LEC
         provisions such access to unbundled network elements, shall, at a minimum, be no less favorable to the
         requesting carrier than the terms and conditions under which the incumbent LEC provides such elements
         to itself.

     (c) An incumbent LEC must provide a carrier purchasing access to unbundled network elements with the pre-
         ordering, ordering, provisioning, maintenance and repair, and billing functions of the incumbent LEC's
         operations support systems.

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§ 51.315 Combination of unbundled network elements.
     (a) An incumbent LEC shall provide unbundled network elements in a manner that allows requesting
         telecommunications carriers to combine such network elements in order to provide a
         telecommunications service.

     (b) Except upon request, an incumbent LEC shall not separate requested network elements that the
         incumbent LEC currently combines.

     (c) Upon request, an incumbent LEC shall perform the functions necessary to combine unbundled network
         elements in any manner, even if those elements are not ordinarily combined in the incumbent LEC's
         network, provided that such combination:

           (1) Is technically feasible; and

           (2) Would not undermine the ability of other carriers to obtain access to unbundled network elements or
               to interconnect with the incumbent LEC's network.

     (d) Upon request, an incumbent LEC shall perform the functions necessary to combine unbundled network
         elements with elements possessed by the requesting telecommunications carrier in any technically
         feasible manner.

     (e) An incumbent LEC that denies a request to combine elements pursuant to paragraph (c)(1) or paragraph
         (d) of this section must prove to the state commission that the requested combination is not technically
         feasible.

     (f) An incumbent LEC that denies a request to combine unbundled network elements pursuant to paragraph
         (c)(2) of this section must demonstrate to the state commission that the requested combination would
         undermine the ability of other carriers to obtain access to unbundled network elements or to interconnect
         with the incumbent LEC's network.

[61 FR 45619, Aug. 29, 1996, as amended at 68 FR 52294, Sept. 2, 2003]

§ 51.316 Conversion of unbundled network elements and services.
     (a) Upon request, an incumbent LEC shall convert a wholesale service, or group of wholesale services, to the
         equivalent unbundled network element, or combination of unbundled network elements, that is available
         to the requesting telecommunications carrier under section 251(c)(3) of the Act and this part.

     (b) An incumbent LEC shall perform any conversion from a wholesale service or group of wholesale services
         to an unbundled network element or combination of unbundled network elements without adversely
         affecting the service quality perceived by the requesting telecommunications carrier's end-user customer.

     (c) Except as agreed to by the parties, an incumbent LEC shall not impose any untariffed termination charges,
         or any disconnect fees, re-connect fees, or charges associated with establishing a service for the first
         time, in connection with any conversion between a wholesale service or group of wholesale services and
         an unbundled network element or combination of unbundled network elements.

[68 FR 52294, Sept. 2, 2003]

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§ 51.317 Standards for requiring the unbundling of network elements.
     (a) Proprietary network elements. A network element shall be considered to be proprietary if an incumbent
         LEC can demonstrate that it has invested resources to develop proprietary information or functionalities
         that are protected by patent, copyright or trade secret law. The Commission shall undertake the following
         analysis to determine whether a proprietary network element should be made available for purposes of
         section 251(c)(3) of the Act:

           (1) Determine whether access to the proprietary network element is “necessary.” A network element is
               “necessary” if, taking into consideration the availability of alternative elements outside the
               incumbent LEC's network, including self-provisioning by a requesting telecommunications carrier or
               acquiring an alternative from a third-party supplier, lack of access to the network element precludes
               a requesting telecommunications carrier from providing the services that it seeks to offer. If access
               is “necessary,” the Commission may require the unbundling of such proprietary network element.

           (2) In the event that such access is not “necessary,” the Commission may require unbundling if it is
               determined that:

                 (i)   The incumbent LEC has implemented only a minor modification to the network element in order
                       to qualify for proprietary treatment;

                 (ii) The information or functionality that is proprietary in nature does not differentiate the
                      incumbent LEC's services from the requesting telecommunications carrier's services; or

                (iii) Lack of access to such element would jeopardize the goals of the Act.

     (b) Non-proprietary network elements. The Commission shall determine whether a non-proprietary network
         element should be made available for purposes of section 251(c)(3) of the Act by analyzing, at a
         minimum, whether lack of access to a non-proprietary network element “impairs” a requesting carrier's
         ability to provide the service it seeks to offer. A requesting carrier's ability to provide service is “impaired”
         if, taking into consideration the availability of alternative elements outside the incumbent LEC's network,
         including elements self-provisioned by the requesting carrier or acquired as an alternative from a third-
         party supplier, lack of access to that element poses a barrier or barriers to entry, including operational and
         economic barriers, that are likely to make entry into a market by a reasonably efficient competitor
         uneconomic.

[70 FR 8952, Feb. 24, 2005]

§ 51.318 Eligibility criteria for access to certain unbundled network elements.
     (a) Except as provided in paragraph (b) of this section, an incumbent LEC shall provide access to unbundled
         network elements and combinations of unbundled network elements without regard to whether the
         requesting telecommunications carrier seeks access to the elements to establish a new circuit or to
         convert an existing circuit from a service to unbundled network elements.

     (b) An incumbent LEC need not provide access to an unbundled DS1 loop in combination, or commingled,
         with a dedicated DS1 transport or dedicated DS3 transport facility or service, or to an unbundled DS3 loop
         in combination, or commingled, with a dedicated DS3 transport facility or service, or an unbundled
         dedicated DS1 transport facility in combination, or commingled, with an unbundled DS1 loop or a DS1
         channel termination service, or to an unbundled dedicated DS3 transport facility in combination, or

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           commingled, with an unbundled DS1 loop or a DS1 channel termination service, or to an unbundled DS3
           loop or a DS3 channel termination service, unless the requesting telecommunications carrier certifies that
           all of the following conditions are met:

           (1) The requesting telecommunications carrier has received state certification to provide local voice
               service in the area being served or, in the absence of a state certification requirement, has complied
               with registration, tariffing, filing fee, or other regulatory requirements applicable to the provision of
               local voice service in that area.

           (2) The following criteria are satisfied for each combined circuit, including each DS1 circuit, each DS1
               enhanced extended link, and each DS1-equivalent circuit on a DS3 enhanced extended link:

                 (i)   Each circuit to be provided to each customer will be assigned a local number prior to the
                       provision of service over that circuit;

                 (ii) Each DS1-equivalent circuit on a DS3 enhanced extended link must have its own local number
                      assignment, so that each DS3 must have at least 28 local voice numbers assigned to it;

                (iii) Each circuit to be provided to each customer will have 911 or E911 capability prior to the
                      provision of service over that circuit;

                (iv) Each circuit to be provided to each customer will terminate in a collocation arrangement that
                     meets the requirements of paragraph (c) of this section;

                 (v) Each circuit to be provided to each customer will be served by an interconnection trunk that
                     meets the requirements of paragraph (d) of this section;

                (vi) For each 24 DS1 enhanced extended links or other facilities having equivalent capacity, the
                     requesting telecommunications carrier will have at least one active DS1 local service
                     interconnection trunk that meets the requirements of paragraph (d) of this section; and

                (vii) Each circuit to be provided to each customer will be served by a switch capable of switching
                      local voice traffic.

     (c) A collocation arrangement meets the requirements of this paragraph if it is:

           (1) Established pursuant to section 251(c)(6) of the Act and located at an incumbent LEC premises
               within the same LATA as the customer's premises, when the incumbent LEC is not the collocator;
               and

           (2) Located at a third party's premises within the same LATA as the customer's premises, when the
               incumbent LEC is the collocator.

     (d) An interconnection trunk meets the requirements of this paragraph if the requesting telecommunications
         carrier will transmit the calling party's number in connection with calls exchanged over the trunk.

[68 FR 52295, Sept. 2, 2003, as amended at 68 FR 64000, Nov. 12, 2003]

§ 51.319 Specific unbundling requirements.
     (a) Local loops. An incumbent LEC shall provide a requesting telecommunications carrier with
         nondiscriminatory access to the local loop on an unbundled basis, in accordance with section 251(c)(3)
         of the Act and this part and as set forth in paragraphs (a)(1) through (8) of this section. The local loop
         network element is defined as a transmission facility between a distribution frame (or its equivalent) in an

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           incumbent LEC central office and the loop demarcation point at an end-user customer premises. This
           element includes all features, functions, and capabilities of such transmission facility, including the
           network interface device. It also includes all electronics, optronics, and intermediate devices (including
           repeaters and load coils) used to establish the transmission path to the end-user customer premises as
           well as any inside wire owned or controlled by the incumbent LEC that is part of that transmission path.

           (1) Copper loops. An incumbent LEC shall provide a requesting telecommunications carrier with
               nondiscriminatory access to the copper on an unbundled basis in census blocks defined as rural or
               urban cluster by the Census Bureau. A copper loop is a stand-alone local loop comprised entirely of
               copper wire or cable. For purposes of this section, copper loops include only digital copper loops
               (e.g., DS0s and integrated services digital network lines) as well as two-wire and four-wire copper
               loops conditioned to transmit the digital signals needed to provide digital subscriber line services,
               regardless of whether the copper loops are in service or held as spares. The copper loop does not
               include packet switching capabilities as defined in paragraph (a)(2)(i) of this section. The availability
               of DS1 and DS3 copper loops is subject to the requirements of paragraphs (a)(4) and (5) of this
               section.

                 (i)   Line splitting. An incumbent LEC shall provide a requesting telecommunications carrier that
                       obtains an unbundled copper loop from the incumbent LEC with the ability to engage in line
                       splitting arrangements with another competitive LEC using a splitter collocated at the central
                       office where the loop terminates into a distribution frame or its equivalent. Line splitting is the
                       process in which one competitive LEC provides narrowband voice service over the low
                       frequency portion of a copper loop and a second competitive LEC provides digital subscriber
                       line service over the high frequency portion of that same loop. The high frequency portion of
                       the loop consists of the frequency range on the copper loop above the range that carries analog
                       circuit-switched voice transmissions. This portion of the loop includes the features, functions,
                       and capabilities of the loop that are used to establish a complete transmission path on the high
                       frequency range between the incumbent LEC's distribution frame (or its equivalent) in its central
                       office and the demarcation point at the end-user customer premises, and includes the high
                       frequency portion of any inside wire owned or controlled by the incumbent LEC.

                       (A) An incumbent LEC's obligation, under paragraph (a)(1)(i) of this section, to provide a
                           requesting telecommunications carrier with the ability to engage in line splitting applies
                           regardless of whether the carrier providing voice service provides its own switching or
                           obtains local circuit switching from the incumbent LEC.

                       (B) An incumbent LEC must make all necessary network modifications, including providing
                           nondiscriminatory access to operations support systems necessary for pre-ordering,
                           ordering, provisioning, maintenance and repair, and billing for loops used in line splitting
                           arrangements.

                 (ii) Line conditioning. The incumbent LEC shall condition a copper loop at the request of the carrier
                      seeking access to a copper loop under paragraph (a)(1) of this section or a copper subloop
                      under paragraph (b) of this section to ensure that the copper loop or copper subloop is suitable
                      for providing digital subscriber line services, whether or not the incumbent LEC offers advanced
                      services to the end-user customer on that copper loop or copper subloop. If the incumbent LEC
                      seeks compensation from the requesting telecommunications carrier for line conditioning, the
                      requesting telecommunications carrier has the option of refusing, in whole or in part, to have

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                      the line conditioned; and a requesting telecommunications carrier's refusal of some or all
                      aspects of line conditioning will not diminish any right it may have, under paragraphs (a) and (b)
                      of this section, to access the copper loop or the copper subloop.

                      (A) Line conditioning is defined as the removal from a copper loop or copper subloop of any
                          device that could diminish the capability of the loop or subloop to deliver high-speed
                          switched wireline telecommunications capability, including digital subscriber line service.
                          Such devices include, but are not limited to, bridge taps, load coils, low pass filters, and
                          range extenders.

                      (B) Incumbent LECs shall recover the costs of line conditioning from the requesting
                          telecommunications carrier in accordance with the Commission's forward-looking pricing
                          principles promulgated pursuant to section 252(d)(1) of the Act and in compliance with
                          rules governing nonrecurring costs in § 51.507(e).

                      (C) Insofar as it is technically feasible, the incumbent LEC shall test and report troubles for all
                          the features, functions, and capabilities of conditioned copper lines, and may not restrict
                          its testing to voice transmission only.

                (iii) Maintenance, repair, and testing.

                      (A) An incumbent LEC shall provide, on a nondiscriminatory basis, physical loop test access
                          points to a requesting telecommunications carrier at the splitter, through a cross-
                          connection to the requesting telecommunications carrier's collocation space, or through a
                          standardized interface, such as an intermediate distribution frame or a test access server,
                          for the purpose of testing, maintaining, and repairing copper loops and copper subloops.

                      (B) An incumbent LEC seeking to utilize an alternative physical access methodology may
                          request approval to do so from the state commission, but must show that the proposed
                          alternative method is reasonable and nondiscriminatory, and will not disadvantage a
                          requesting telecommunications carrier's ability to perform loop or service testing,
                          maintenance, or repair.

                (iv) Control of the loop and splitter functionality. In situations where a requesting
                     telecommunications carrier is obtaining access to the high frequency portion of a copper loop
                     through a line splitting arrangement, the incumbent LEC may maintain control over the loop and
                     splitter equipment and functions, and shall provide to the requesting telecommunications
                     carrier loop and splitter functionality that is compatible with any transmission technology that
                     the requesting telecommunications carrier seeks to deploy using the high frequency portion of
                     the loop, as defined in paragraph (a)(1)(i) of this section, provided that such transmission
                     technology is presumed to be deployable pursuant to § 51.230.

                 (v) Transition period for narrowband loops. Notwithstanding any other provision of the
                     Commission's rules in this part, an incumbent LEC shall continue to provide a requesting
                     telecommunications carrier with nondiscriminatory access to two-wire and four-wire analog
                     voice grade copper loops, the TDM-features, functions, and capabilities of hybrid loops, or to a
                     64 kilobits per second transmission path capable of voice grade service over the fiber-to-the-
                     home loop or fiber-to-the-curb loop for 36 months until February 8, 2024, provided such loop
                     was being provided before February 8, 2021.

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                (vi) Transition period for digital copper loops and two-wire and four-wire copper loops conditioned to
                     transmit digital signals. Notwithstanding the remainder of paragraph (a)(1) of this section, an
                     incumbent LEC shall continue to provide a requesting telecommunications carrier with
                     nondiscriminatory access to copper loops as defined in this section for 48 months until
                     February 10, 2025, provided that the incumbent LEC began providing such loop no later than
                     February 8, 2023. Incumbent LECs may raise the rates charged for such loops by no more than
                     25 percent during months 37 to 48 of this transition period and may charge market-based rates
                     after month 48.

           (2) Hybrid loops. A hybrid loop is a local loop composed of both fiber optic cable, usually in the feeder
               plant, and copper wire or cable, usually in the distribution plant.

                 (i)   Packet switching facilities, features, functions, and capabilities. An incumbent LEC is not
                       required to provide unbundled access to the packet switched features, functions and
                       capabilities of its hybrid loops. Packet switching capability is the routing or forwarding of
                       packets, frames, cells, or other data units based on address or other routing information
                       contained in the packets, frames, cells or other data units, and the functions that are performed
                       by the digital subscriber line access multiplexers, including but not limited to the ability to
                       terminate an end-user customer's copper loop (which includes both a low-band voice channel
                       and a high-band data channel, or solely a data channel); the ability to forward the voice
                       channels, if present, to a circuit switch or multiple circuit switches; the ability to extract data
                       units from the data channels on the loops; and the ability to combine data units from multiple
                       loops onto one or more trunks connecting to a packet switch or packet switches.

                 (ii) [Reserved]

           (3) Fiber loops —

                 (i)   Definitions —

                       (A) Fiber-to-the-home loops. A fiber-to-the-home loop is a local loop consisting entirely of fiber
                           optic cable, whether dark or lit, serving an end user's customer premises or, in the case of
                           predominantly residential multiple dwelling units (MDUs), a fiber optic cable, whether dark
                           or lit, that extends to the multiunit premises' minimum point of entry (MPOE).

                       (B) Fiber-to-the-curb loops. A fiber-to-the-curb loop is a local loop consisting of fiber optic
                           cable connecting to a copper distribution plant that is not more than 500 feet from the
                           customer's premises or, in the case of predominantly residential MDUs, not more than 500
                           feet from the MDU's MPOE. The fiber optic cable in a fiber-to-the-curb loop must connect
                           to a copper distribution plant at a serving area interface from which every other copper
                           distribution subloop also is not more than 500 feet from the respective customer's
                           premises.

                 (ii) New builds. An incumbent LEC is not required to provide nondiscriminatory access to a fiber-to-
                      the-home loop or a fiber-to-the-curb loop on an unbundled basis when the incumbent LEC
                      deploys such a loop to an end user's customer premises that previously has not been served by
                      any loop facility.

                (iii) Overbuilds. An incumbent LEC is not required to provide nondiscriminatory access to a fiber-to-
                      the-home loop or a fiber-to-the-curb loop on an unbundled basis when the incumbent LEC has
                      deployed such a loop parallel to, or in replacement of, an existing copper loop facility, except
                      that:

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                       (A) The incumbent LEC must maintain the existing copper loop connected to the particular
                           customer premises after deploying the fiber-to-the-home loop or the fiber-to-the-curb loop
                           and provide nondiscriminatory access to that copper loop on an unbundled basis unless
                           the incumbent LEC retires the copper loops pursuant to paragraph (a)(3)(iv) of this
                           section.

                       (B) An incumbent LEC that maintains the existing copper loops pursuant to paragraph
                           (a)(3)(iii)(A) of this section need not incur any expenses to ensure that the existing copper
                           loop remains capable of transmitting signals prior to receiving a request for access
                           pursuant to that paragraph, in which case the incumbent LEC shall restore the copper loop
                           to serviceable condition upon request.

                (iv) Retirement of copper loops or copper subloops. Prior to retiring any copper loop or copper
                     subloop that has been replaced with a fiber-to-the-home loop or a fiber-to-the-curb loop, an
                     incumbent LEC must comply with:

                       (A) The network disclosure requirements set forth in section 251(c)(5) of the Act and in §
                           51.325 through § 51.335; and

                       (B) Any applicable state requirements.

           (4) DS1 loops.

                 (i)   Availability of DS1 loops.

                       (A) Subject to the cap described in paragraph (a)(4)(ii) of this section, an incumbent LEC shall
                           provide a requesting telecommunications carrier with nondiscriminatory access to a DS1
                           loop on an unbundled basis to any building not served by a wire center with at least 60,000
                           business lines and at least four fiber-based collocators, but only if that building is located
                           in:

                            (1) Any county or portion of a county served by a price cap incumbent LEC that is not
                                included on the list of counties that have been deemed competitive pursuant to the
                                competitive market test established under § 69.803 of this chapter; or

                            (2) Any study area served by a rate-of-return incumbent LEC provided that study area is
                                not included on the list of competitive study areas pursuant to the competitive
                                market test established under § 61.50 of this chapter.

                       (B) Once a wire center exceeds both the business line and fiber-based collocator thresholds,
                           no future DS1 loop unbundling will be required in that wire center. A DS1 loop is a digital
                           local loop having a total digital signal speed of 1.544 megabytes per second. DS1 loops
                           include, but are not limited to, two-wire and four-wire copper loops capable of providing
                           high-bit rate digital subscriber line services, including T1 services.

                 (ii) Cap on unbundled DS1 loop circuits. A requesting telecommunications carrier may obtain a
                      maximum of ten unbundled DS1 loops to any single building in which DS1 loops are available
                      as unbundled loops.

                (iii) Transition period. Notwithstanding paragraph (a)(4)(i) of this section, an incumbent LEC shall
                      continue to provide a requesting telecommunications carrier with nondiscriminatory access to
                      DS1 loops for 42 months until August 8, 2024, provided the incumbent LEC began providing
                      such loop no later than February 8, 2023.

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           (5) DS3 loops.

                 (i)   Availability of DS3 loops.

                       (A) Subject to the cap described in paragraph (a)(5)(ii) of this section, an incumbent LEC shall
                           provide a requesting telecommunications carrier with nondiscriminatory access to a DS3
                           loop on an unbundled basis to any building not served by a wire center with at least 38,000
                           business lines and at least four fiber-based collocators, but only if that building is located
                           in one of the following:

                            (1) Any county or portion of a county served by a price cap incumbent LEC that is not
                                included on the list of counties that have been deemed competitive pursuant to the
                                competitive market test established under § 69.803 of this chapter; or

                            (2) Any study area served by a rate-of-return incumbent LEC provided that study area is
                                not included on the list of competitive study areas pursuant to the competitive
                                market test established under § 61.50 of this chapter.

                       (B) Once a wire center exceeds the business line and fiber-based collocator thresholds, no
                           future DS3 loop unbundling will be required in that wire center. A DS3 loop is a digital local
                           loop having a total digital signal speed of 44.736 megabytes per second.

                 (ii) Cap on unbundled DS3 loop circuits. A requesting telecommunications carrier may obtain a
                      maximum of a single unbundled DS3 loop to any single building in which DS3 loops are
                      available as unbundled loops.

                (iii) Transition period. Notwithstanding paragraph (a)(5)(i) of this section, an incumbent LEC shall
                      continue to provide a requesting telecommunications carrier with nondiscriminatory access to
                      DS3 loops for 36 months after until February 8, 2024, provided such loop was being provided
                      before February 8, 2021.

           (6) Dark fiber loops. An incumbent LEC is not required to provide requesting telecommunications
               carriers with access to a dark fiber loop on an unbundled basis. Dark fiber is fiber within an existing
               fiber optic cable that has not yet been activated through optronics to render it capable of carrying
               communications services.

           (7) Routine network modifications.

                 (i)   An incumbent LEC shall make all routine network modifications to unbundled loop facilities
                       used by requesting telecommunications carriers where the requested loop facility has already
                       been constructed. An incumbent LEC shall perform these routine network modifications to
                       unbundled loop facilities in a nondiscriminatory fashion, without regard to whether the loop
                       facility being accessed was constructed on behalf, or in accordance with the specifications, of
                       any carrier.

                 (ii) A routine network modification is an activity that the incumbent LEC regularly undertakes for its
                      own customers. Routine network modifications include, but are not limited to, rearranging or
                      splicing of cable; adding an equipment case; adding a doubler or repeater; adding a smart jack;
                      installing a repeater shelf; adding a line card; deploying a new multiplexer or reconfiguring an
                      existing multiplexer; and attaching electronic and other equipment that the incumbent LEC
                      ordinarily attaches to a DS1 loop to activate such loop for its own customer. Routine network
                      modifications may entail activities such as accessing manholes, deploying bucket trucks to

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                       reach aerial cable, and installing equipment casings. Routine network modifications do not
                       include the construction of a new loop, or the installation of new aerial or buried cable for a
                       requesting telecommunications carrier.

           (8) Engineering policies, practices, and procedures. An incumbent LEC shall not engineer the
               transmission capabilities of its network in a manner, or engage in any policy, practice, or procedure,
               that disrupts or degrades access to a local loop or subloop, including the time division multiplexing-
               based features, functions, and capabilities of a hybrid loop, for which a requesting
               telecommunications carrier may obtain or has obtained access pursuant to paragraph (a) of this
               section.

     (b) Subloops and network interface devices. An incumbent LEC shall provide a requesting
         telecommunications carrier with nondiscriminatory access to subloops on an unbundled basis in
         accordance with section 251(c)(3) of the Act and this part and as set forth in this paragraph (b), provided
         that the underlying loop is available as set forth in paragraph (a) of this section. Notwithstanding any
         other provision of the Commission's rules in this part, an incumbent LEC shall continue to provide a
         requesting telecommunications carrier with nondiscriminatory access to the subloop for access to
         multiunit premises wiring and network interface devices on an unbundled basis for 36 months until
         February 8, 2024, provided such subloop or network interface device was being provided before February
         8, 2021.

           (1) Copper subloops. An incumbent LEC shall provide a requesting telecommunications carrier with
               nondiscriminatory access to a copper subloop on an unbundled basis. A copper subloop is a portion
               of a copper loop, or hybrid loop, comprised entirely of copper wire or copper cable that acts as a
               transmission facility between any point of technically feasible access in an incumbent LEC's outside
               plant, including inside wire owned or controlled by the incumbent LEC, and the end-user customer
               premises. A copper subloop includes all intermediate devices (including repeaters and load coils)
               used to establish a transmission path between a point of technically feasible access and the
               demarcation point at the end-user customer premises, and includes the features, functions, and
               capabilities of the copper loop. Copper subloops include two-wire and four-wire analog voice-grade
               subloops as well as two-wire and four-wire subloops conditioned to transmit the digital signals
               needed to provide digital subscriber line services, regardless of whether the subloops are in service
               or held as spares.

                 (i)   Point of technically feasible access. A point of technically feasible access is any point in the
                       incumbent LEC's outside plant where a technician can access the copper wire within a cable
                       without removing a splice case. Such points include, but are not limited to, a pole or pedestal,
                       the serving area interface, the network interface device, the minimum point of entry, any remote
                       terminal, and the feeder/distribution interface. An incumbent LEC shall, upon a site-specific
                       request, provide access to a copper subloop at a splice near a remote terminal. The incumbent
                       LEC shall be compensated for providing this access in accordance with §§ 51.501 through
                       51.515.

                 (ii) Rules for collocation. Access to the copper subloop is subject to the Commission's collocation
                      rules at §§ 51.321 and 51.323.

           (2) [Reserved]

           (3) Other subloop provisions —

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                 (i)   Technical feasibility. If parties are unable to reach agreement through voluntary negotiations as
                       to whether it is technically feasible, or whether sufficient space is available, to unbundle a
                       copper subloop at the point where a telecommunications carrier requests, the incumbent LEC
                       shall have the burden of demonstrating to the state commission, in state proceedings under
                       section 252 of the Act, that there is not sufficient space available, or that it is not technically
                       feasible to unbundle the subloop at the point requested.

                 (ii) Best practices. Once one state commission has determined that it is technically feasible to
                      unbundle subloops at a designated point, an incumbent LEC in any state shall have the burden
                      of demonstrating to the state commission, in state proceedings under section 252 of the Act,
                      that it is not technically feasible, or that sufficient space is not available, to unbundle its own
                      loops at such a point.

     (c) Dedicated transport. An incumbent LEC shall provide a requesting telecommunications carrier with
         nondiscriminatory access to dedicated transport on an unbundled basis, in accordance with section
         251(c)(3) of the Act and this part, as set forth in paragraphs (d) through (d)(4) of this section. A “route” is
         a transmission path between one of an incumbent LEC's wire centers or switches and another of the
         incumbent LEC's wire centers or switches. A route between two points (e.g., wire center or switch “A” and
         wire center or switch “Z”) may pass through one or more intermediate wire centers or switches (e.g., wire
         center or switch “X”). Transmission paths between identical end points (e.g., wire center or switch “A” and
         wire center or switch “Z”) are the same “route,” irrespective of whether they pass through the same
         intermediate wire centers or switches, if any.

           (1) Definition. For purposes of this section, dedicated transport includes incumbent LEC transmission
               facilities between wire centers or switches owned by incumbent LECs, or between wire centers or
               switches owned by incumbent LECs and switches owned by requesting telecommunications
               carriers, including, but not limited to, DS1-, DS3-, and OCn-capacity level services, as well as dark
               fiber, dedicated to a particular customer or carrier.

           (2) Availability.

                 (i)   Entrance facilities. An incumbent LEC is not obligated to provide a requesting carrier with
                       unbundled access to dedicated transport that does not connect a pair of incumbent LEC wire
                       centers.

                 (ii) Dedicated DS1 transport. Dedicated DS1 transport shall be made available to requesting
                      carriers on an unbundled basis as set forth in paragraphs (d)(2)(ii)(A) and (B) of this section.
                      Dedicated DS1 transport consists of incumbent LEC interoffice transmission facilities that have
                      a total digital signal speed of 1.544 megabytes per second and are dedicated to a particular
                      customer or carrier.

                       (A) General availability of DS1 transport. Incumbent LECs shall unbundle DS1 transport
                           between any pair of incumbent LEC wire centers except where, through application of tier
                           classifications described in paragraph (d)(3) of this section, both wire centers defining the
                           route are Tier 1 wire centers. As such, an incumbent LEC must unbundle DS1 transport if a
                           wire center at either end of a requested route is not a Tier 1 wire center, or if neither is a
                           Tier 1 wire center.

                       (B) Cap on unbundled DS1 transport circuits. A requesting telecommunications carrier may
                           obtain a maximum of ten unbundled DS1 dedicated transport circuits on each route where
                           DS1 dedicated transport is available on an unbundled basis.

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                (iii) Dedicated DS3 transport. Dedicated DS3 transport shall be made available to requesting
                      carriers on an unbundled basis as set forth in paragraphs (d)(2)(iii)(A) and(B) of this section.
                      Dedicated DS3 transport consists of incumbent LEC interoffice transmission facilities that have
                      a total digital signal speed of 44.736 megabytes per second and are dedicated to a particular
                      customer or carrier.

                       (A) General availability of DS3 transport. Incumbent LECs shall unbundle DS3 transport
                           between any pair of incumbent LEC wire centers except where, through application of tier
                           classifications described in paragraph (d)(3) of this section, both wire centers defining the
                           route are either Tier 1 or Tier 2 wire centers. As such, an incumbent LEC must unbundle
                           DS3 transport if a wire center on either end of a requested route is a Tier 3 wire center.

                       (B) Cap on unbundled DS3 transport circuits. A requesting telecommunications carrier may
                           obtain a maximum of 12 unbundled DS3 dedicated transport circuits on each route where
                           DS3 dedicated transport is available on an unbundled basis.

                (iv) Dark fiber transport. Dark fiber transport consists of unactivated optical interoffice transmission
                     facilities. Incumbent LECs shall unbundle dark fiber transport between any pair of incumbent
                     LEC wire centers except where, through application of tier classifications described in
                     paragraph (d)(3) of this section, both wire centers defining the route are either Tier 1, Tier 2, or a
                     Tier 3 wire center identified on the list of wire centers that has been found to be within a half
                     mile of alternative fiber pursuant to the Report and Order on Remand and Memorandum
                     Opinion and Order in WC Docket No. 18–14, FCC 19–66 (released July 12, 2019). An incumbent
                     LEC must unbundle dark fiber transport only if a wire center on either end of a requested route
                     is a Tier 3 wire center that is not on the published list of wire centers. Notwithstanding any
                     other provision of the Commission's rules in this part, an incumbent LEC shall continue to
                     provide a requesting telecommunications carrier with nondiscriminatory access to dark fiber
                     transport for eight years until February 8, 2029, provided such dark fiber transport was being
                     provided before February 8, 2021.

           (3) Wire center tier structure. For purposes of this section, incumbent LEC wire centers shall be
               classified into three tiers, defined as follows:

                 (i)   Tier 1 wire centers are those incumbent LEC wire centers that contain at least four fiber-based
                       collocators, at least 38,000 business lines, or both. Tier 1 wire centers also are those incumbent
                       LEC tandem switching locations that have no line-side switching facilities, but nevertheless
                       serve as a point of traffic aggregation accessible by competitive LECs. Once a wire center is
                       determined to be a Tier 1 wire center, that wire center is not subject to later reclassification as a
                       Tier 2 or Tier 3 wire center.

                 (ii) Tier 2 wire centers are those incumbent LEC wire centers that are not Tier 1 wire centers, but
                      contain at least 3 fiber-based collocators, at least 24,000 business lines, or both. Once a wire
                      center is determined to be a Tier 2 wire center, that wire center is not subject to later
                      reclassification as a Tier 3 wire center.

                (iii) Tier 3 wire centers are those incumbent LEC wire centers that do not meet the criteria for Tier 1
                      or Tier 2 wire centers.

           (4) Routine network modifications.

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                 (i)   An incumbent LEC shall make all routine network modifications to unbundled dedicated
                       transport facilities used by requesting telecommunications carriers where the requested
                       dedicated transport facilities have already been constructed. An incumbent LEC shall perform
                       all routine network modifications to unbundled dedicated transport facilities in a
                       nondiscriminatory fashion, without regard to whether the facility being accessed was
                       constructed on behalf, or in accordance with the specifications, of any carrier.

                 (ii) A routine network modification is an activity that the incumbent LEC regularly undertakes for its
                      own customers. Routine network modifications include, but are not limited to, rearranging or
                      splicing of cable; adding an equipment case; adding a doubler or repeater; installing a repeater
                      shelf; and deploying a new multiplexer or reconfiguring an existing multiplexer. They also
                      include activities needed to enable a requesting telecommunications carrier to light a dark fiber
                      transport facility. Routine network modifications may entail activities such as accessing
                      manholes, deploying bucket trucks to reach aerial cable, and installing equipment casings.
                      Routine network modifications do not include the installation of new aerial or buried cable for a
                      requesting telecommunications carrier.

     (d) 911 and E911 databases. An incumbent LEC shall provide a requesting telecommunications carrier with
         nondiscriminatory access to 911 and E911 databases on an unbundled basis, in accordance with section
         251(c)(3) of the Act and this part.

     (e) Operations support systems. An incumbent LEC shall provide a requesting telecommunications carrier
         with nondiscriminatory access to operations support systems on an unbundled basis only when it is used
         to manage other unbundled network elements, local interconnection, or local number portability, in
         accordance with section 251(c)(3) of the Act and this part. Operations support system functions consist
         of pre-ordering, ordering, provisioning, maintenance and repair, and billing functions supported by an
         incumbent LEC's databases and information. An incumbent LEC, as part of its duty to provide access to
         the pre-ordering function, shall provide the requesting telecommunications carrier with nondiscriminatory
         access to the same detailed information about the loop that is available to the incumbent LEC.

[68 FR 52295, Sept. 4, 2003, as amended at 68 FR 64000, Nov. 12, 2003; 69 FR 54591, Sept. 9, 2004; 69 FR 77953, Dec. 29, 2004;
70 FR 8953, Feb. 24, 2005: 78 FR 5746, Jan. 28, 2013; 86 FR 1673, Jan. 8, 2021; 86 FR 8872, Feb. 10, 2021]

§ 51.320 Assumption of responsibility by the Commission.
If a state commission fails to exercise its authority under § 51.319, any party seeking that the Commission step into
the role of the state commission shall file with the Commission and serve on the state commission a petition that
explains with specificity the bases for the petition and information that supports the claim that the state
commission has failed to act. Subsequent to the Commission's issuing a public notice and soliciting comments on
the petition from interested parties, the Commission will rule on the petition within 90 days of the date of the public
notice. If it agrees that the state commission has failed to act, the Commission will assume responsibility for the
proceeding, and within nine months from the date it assumed responsibility for the proceeding, make any findings in
accordance with the Commission's rules.

[68 FR 52305, Sept. 2, 2003]

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                                                                                                            47 CFR 51.321
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§ 51.321 Methods of obtaining interconnection and access to unbundled elements under section
251 of the Act.
     (a) Except as provided in paragraph (e) of this section, an incumbent LEC shall provide, on terms and
         conditions that are just, reasonable, and nondiscriminatory in accordance with the requirements of this
         part, any technically feasible method of obtaining interconnection or access to unbundled network
         elements at a particular point upon a request by a telecommunications carrier.

     (b) Technically feasible methods of obtaining interconnection or access to unbundled network elements
         include, but are not limited to:

           (1) Physical collocation and virtual collocation at the premises of an incumbent LEC; and

           (2) Meet point interconnection arrangements.

     (c) A previously successful method of obtaining interconnection or access to unbundled network elements at
         a particular premises or point on any incumbent LEC's network is substantial evidence that such method
         is technically feasible in the case of substantially similar network premises or points. A requesting
         telecommunications carrier seeking a particular collocation arrangement, either physical or virtual, is
         entitled to a presumption that such arrangement is technically feasible if any LEC has deployed such
         collocation arrangement in any incumbent LEC premises.

     (d) An incumbent LEC that denies a request for a particular method of obtaining interconnection or access to
         unbundled network elements on the incumbent LEC's network must prove to the state commission that
         the requested method of obtaining interconnection or access to unbundled network elements at that
         point is not technically feasible.

     (e) An incumbent LEC shall not be required to provide for physical collocation of equipment necessary for
         interconnection or access to unbundled network elements at the incumbent LEC's premises if it
         demonstrates to the state commission that physical collocation is not practical for technical reasons or
         because of space limitations. In such cases, the incumbent LEC shall be required to provide virtual
         collocation, except at points where the incumbent LEC proves to the state commission that virtual
         collocation is not technically feasible. If virtual collocation is not technically feasible, the incumbent LEC
         shall provide other methods of interconnection and access to unbundled network elements to the extent
         technically feasible.

     (f) An incumbent LEC shall submit to the state commission, subject to any protective order as the state
         commission may deem necessary, detailed floor plans or diagrams of any premises where the incumbent
         LEC claims that physical collocation is not practical because of space limitations. These floor plans or
         diagrams must show what space, if any, the incumbent LEC or any of its affiliates has reserved for future
         use, and must describe in detail the specific future uses for which the space has been reserved and the
         length of time for each reservation. An incumbent LEC that contends space for physical collocation is not
         available in an incumbent LEC premises must also allow the requesting carrier to tour the entire premises
         in question, not only the area in which space was denied, without charge, within ten days of the receipt of
         the incumbent's denial of space. An incumbent LEC must allow a requesting telecommunications carrier
         reasonable access to its selected collocation space during construction.

     (g) An incumbent LEC that is classified as a Class A company under § 32.11 of this chapter and that is not a
         National Exchange Carrier Association interstate tariff participant as provided in part 69, subpart G, shall
         continue to provide expanded interconnection service pursuant to interstate tariff in accordance with §§
         64.1401, 64.1402, 69.121 of this chapter, and the Commission's other requirements.

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     (h) Upon request, an incumbent LEC must submit to the requesting carrier within ten days of the submission
         of the request a report describing in detail the space that is available for collocation in a particular
         incumbent LEC premises. This report must specify the amount of collocation space available at each
         requested premises, the number of collocators, and any modifications in the use of the space since the
         last report. This report must also include measures that the incumbent LEC is taking to make additional
         space available for collocation. The incumbent LEC must maintain a publicly available document, posted
         for viewing on the incumbent LEC's publicly available Internet site, indicating all premises that are full, and
         must update such a document within ten days of the date at which a premises runs out of physical
         collocation space.

      (i)   An incumbent LEC must, upon request, remove obsolete unused equipment from their premises to
            increase the amount of space available for collocation.

[61 FR 45619, Aug. 28, 1996, as amended at 64 FR 23241, Apr. 30, 1999; 65 FR 54438, Sept. 8, 2000; 66 FR 43521, Aug. 20, 2001]

§ 51.323 Standards for physical collocation and virtual collocation.
     (a) An incumbent LEC shall provide physical collocation and virtual collocation to requesting
         telecommunications carriers.

     (b) An incumbent LEC shall permit the collocation and use of any equipment necessary for interconnection or
         access to unbundled network elements.

            (1) Equipment is necessary for interconnection if an inability to deploy that equipment would, as a
                practical, economic, or operational matter, preclude the requesting carrier from obtaining
                interconnection with the incumbent LEC at a level equal in quality to that which the incumbent
                obtains within its own network or the incumbent provides to any affiliate, subsidiary, or other party.

            (2) Equipment is necessary for access to an unbundled network element if an inability to deploy that
                equipment would, as a practical, economic, or operational matter, preclude the requesting carrier
                from obtaining nondiscriminatory access to that unbundled network element, including any of its
                features, functions, or capabilities.

            (3) Multi-functional equipment shall be deemed necessary for interconnection or access to an
                unbundled network element if and only if the primary purpose and function of the equipment, as the
                requesting carrier seeks to deploy it, meets either or both of the standards set forth in paragraphs
                (b)(1) and (b)(2) of this section. For a piece of equipment to be utilized primarily to obtain equal in
                quality interconnection or nondiscriminatory access to one or more unbundled network elements,
                there also must be a logical nexus between the additional functions the equipment would perform
                and the telecommunication services the requesting carrier seeks to provide to its customers by
                means of the interconnection or unbundled network element. The collocation of those functions of
                the equipment that, as stand-alone functions, do not meet either of the standards set forth in
                paragraphs (b)(1) and (b)(2) of this section must not cause the equipment to significantly increase
                the burden on the incumbent's property.

     (c) Whenever an incumbent LEC objects to collocation of equipment by a requesting telecommunications
         carrier for purposes within the scope of section 251(c)(6) of the Act, the incumbent LEC shall prove to the
         state commission that the equipment is not necessary for interconnection or access to unbundled
         network elements under the standards set forth in paragraph (b) of this section. An incumbent LEC may
         not object to the collocation of equipment on the grounds that the equipment does not comply with safety
         or engineering standards that are more stringent than the safety or engineering standards that the

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                                                                                                        47 CFR 51.323(d)
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           incumbent LEC applies to its own equipment. An incumbent LEC may not object to the collocation of
           equipment on the ground that the equipment fails to comply with Network Equipment and Building
           Specifications performance standards or any other performance standards. An incumbent LEC that
           denies collocation of a competitor's equipment, citing safety standards, must provide to the competitive
           LEC within five business days of the denial a list of all equipment that the incumbent LEC locates at the
           premises in question, together with an affidavit attesting that all of that equipment meets or exceeds the
           safety standard that the incumbent LEC contends the competitor's equipment fails to meet. This affidavit
           must set forth in detail: the exact safety requirement that the requesting carrier's equipment does not
           satisfy; the incumbent LEC's basis for concluding that the requesting carrier's equipment does not meet
           this safety requirement; and the incumbent LEC's basis for concluding why collocation of equipment not
           meeting this safety requirement would compromise network safety.

     (d) When an incumbent LEC provides physical collocation, virtual collocation, or both, the incumbent LEC
         shall:

           (1) Provide an interconnection point or points, physically accessible by both the incumbent LEC and the
               collocating telecommunications carrier, at which the fiber optic cable carrying an interconnector's
               circuits can enter the incumbent LEC's premises, provided that the incumbent LEC shall designate
               interconnection points as close as reasonably possible to its premises;

           (2) Provide at least two such interconnection points at each incumbent LEC premises at which there are
               at least two entry points for the incumbent LEC's cable facilities, and at which space is available for
               new facilities in at least two of those entry points;

           (3) Permit interconnection of copper or coaxial cable if such interconnection is first approved by the
               state commission; and

           (4) Permit physical collocation of microwave transmission facilities except where such collocation is not
               practical for technical reasons or because of space limitations, in which case virtual collocation of
               such facilities is required where technically feasible.

     (e) When providing virtual collocation, an incumbent LEC shall, at a minimum, install, maintain, and repair
         collocated equipment meeting the standards set forth in paragraph (b) of this section within the same
         time periods and with failure rates that are no greater than those that apply to the performance of similar
         functions for comparable equipment of the incumbent LEC itself.

     (f) An incumbent LEC shall provide space for the collocation of equipment meeting the standards set forth in
         paragraph (b) of this section in accordance with the following requirements:

           (1) An incumbent LEC shall make space available within or on its premises to requesting
               telecommunications carriers on a first-come, first-served basis, provided, however, that the
               incumbent LEC shall not be required to lease or construct additional space to provide for physical
               collocation when existing space has been exhausted;

           (2) To the extent possible, an incumbent LEC shall make contiguous space available to requesting
               telecommunications carriers that seek to expand their existing collocation space;

           (3) When planning renovations of existing facilities or constructing or leasing new facilities, an
               incumbent LEC shall take into account projected demand for collocation of equipment;

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           (4) An incumbent LEC may retain a limited amount of floor space for its own specific future uses,
               provided, however, that neither the incumbent LEC nor any of its affiliates may reserve space for
               future use on terms more favorable than those that apply to other telecommunications carriers
               seeking to reserve collocation space for their own future use;

           (5) An incumbent LEC shall relinquish any space held for future use before denying a request for virtual
               collocation on the grounds of space limitations, unless the incumbent LEC proves to the state
               commission that virtual collocation at that point is not technically feasible; and

           (6) An incumbent LEC may impose reasonable restrictions on the warehousing of unused space by
               collocating telecommunications carriers, provided, however, that the incumbent LEC shall not set
               maximum space limitations applicable to such carriers unless the incumbent LEC proves to the state
               commission that space constraints make such restrictions necessary.

           (7) An incumbent LEC must assign collocation space to requesting carriers in a just, reasonable, and
               nondiscriminatory manner. An incumbent LEC must allow each carrier requesting physical
               collocation to submit space preferences prior to assigning physical collocation space to that carrier.
               At a minimum, an incumbent LEC's space assignment policies and practices must meet the
               following principles:

                (A) An incumbent LEC's space assignment policies and practices must not materially increase a
                requesting carrier's collocation costs.

                (B) An incumbent LEC's space assignment policies and practices must not materially delay a
                requesting carrier occupation and use of the incumbent LEC's premises.

                (C) An incumbent LEC must not assign physical collocation space that will impair the quality of
                service or impose other limitations on the service a requesting carrier wishes to offer.

                (D) An incumbent LEC's space assignment policies and practices must not reduce unreasonably the
                total space available for physical collocation or preclude unreasonably physical collocation within
                the incumbent's premises.

     (g) An incumbent LEC shall permit collocating telecommunications carriers to collocate equipment and
         connect such equipment to unbundled network transmission elements obtained from the incumbent LEC,
         and shall not require such telecommunications carriers to bring their own transmission facilities to the
         incumbent LEC's premises in which they seek to collocate equipment.

     (h) As described in paragraphs (1) and (2) of this section, an incumbent LEC shall permit a collocating
         telecommunications carrier to interconnect its network with that of another collocating
         telecommunications carrier at the incumbent LEC's premises and to connect its collocated equipment to
         the collocated equipment of another telecommunications carrier within the same premises, provided that
         the collocated equipment is also used for interconnection with the incumbent LEC or for access to the
         incumbent LEC's unbundled network elements.

           (1) An incumbent LEC shall provide, at the request of a collocating telecommunications carrier, a
               connection between the equipment in the collocated spaces of two or more telecommunications
               carriers, except to the extent the incumbent LEC permits the collocating parties to provide the
               requested connection for themselves or a connection is not required under paragraph (h)(2) of this
               section. Where technically feasible, the incumbent LEC shall provide the connection using copper,
               dark fiber, lit fiber, or other transmission medium, as requested by the collocating
               telecommunications carrier.

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            (2) An incumbent LEC is not required to provide a connection between the equipment in the collocated
                spaces of two or more telecommunications carriers if the connection is requested pursuant to
                section 201 of the Act, unless the requesting carrier submits to the incumbent LEC a certification
                that more than 10 percent of the amount of traffic to be transmitted through the connection will be
                interstate. The incumbent LEC cannot refuse to accept the certification, but instead must provision
                the service promptly. Any incumbent LEC may file a section 208 complaint with the Commission
                challenging the certification if it believes that the certification is deficient. No such certification is
                required for a request for such connection under section 251 of the Act.

      (i)   As provided herein, an incumbent LEC may require reasonable security arrangements to protect its
            equipment and ensure network reliability. An incumbent LEC may only impose security arrangements that
            are as stringent as the security arrangements that the incumbent LEC maintains at its own premises for
            its own employees or authorized contractors. An incumbent LEC must allow collocating parties to access
            their collocated equipment 24 hours a day, seven days a week, without requiring either a security escort of
            any kind or delaying a competitor's employees' entry into the incumbent LEC's premises. An incumbent
            LEC may require a collocating carrier to pay only for the least expensive, effective security option that is
            viable for the physical collocation space assigned. Reasonable security measures that the incumbent LEC
            may adopt include:

            (1) Installing security cameras or other monitoring systems; or

            (2) Requiring competitive LEC personnel to use badges with computerized tracking systems; or

            (3) Requiring competitive LEC employees to undergo the same level of security training, or its equivalent,
                that the incumbent's own employees, or third party contractors providing similar functions, must
                undergo; provided, however, that the incumbent LEC may not require competitive LEC employees to
                receive such training from the incumbent LEC itself, but must provide information to the competitive
                LEC on the specific type of training required so the competitive LEC's employees can conduct their
                own training.

            (4) Restricting physical collocation to space separated from space housing the incumbent LEC's
                equipment, provided that each of the following conditions is met:

                  (i)   Either legitimate security concerns, or operational constraints unrelated to the incumbent's or
                        any of its affiliates' or subsidiaries competitive concerns, warrant such separation;

                 (ii) Any physical collocation space assigned to an affiliate or subsidiary of the incumbent LEC is
                      separated from space housing the incumbent LEC's equipment;

                 (iii) The separated space will be available in the same time frame as, or a shorter time frame than,
                       non-separated space;

                 (iv) The cost of the separated space to the requesting carrier will not be materially higher than the
                      cost of non-separated space; and

                 (v) The separated space is comparable, from a technical and engineering standpoint, to non-
                     separated space.

            (5) Requiring the employees and contractors of collocating carriers to use a central or separate entrance
                to the incumbent's building, provided, however, that where an incumbent LEC requires that the
                employees or contractors of collocating carriers access collocated equipment only through a
                separate entrance, employees and contractors of the incumbent LEC's affiliates and subsidiaries
                must be subject to the same restriction.

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            (6) Constructing or requiring the construction of a separate entrance to access physical collocation
                space, provided that each of the following conditions is met:

                 (i)   Construction of a separate entrance is technically feasible;

                 (ii) Either legitimate security concerns, or operational constraints unrelated to the incumbent's or
                      any of its affiliates' or subsidiaries competitive concerns, warrant such separation;

                 (iii) Construction of a separate entrance will not artificially delay collocation provisioning; and

                 (iv) Construction of a separate entrance will not materially increase the requesting carrier's costs.

      (j)   An incumbent LEC shall permit a collocating telecommunications carrier to subcontract the construction
            of physical collocation arrangements with contractors approved by the incumbent LEC, provided, however,
            that the incumbent LEC shall not unreasonably withhold approval of contractors. Approval by an
            incumbent LEC shall be based on the same criteria it uses in approving contractors for its own purposes.

     (k) An incumbent LEC's physical collocation offering must include the following:

            (1) Shared collocation cages. A shared collocation cage is a caged collocation space shared by two or
                more competitive LECs pursuant to terms and conditions agreed to by the competitive LECs. In
                making shared cage arrangements available, an incumbent LEC may not increase the cost of site
                preparation or nonrecurring charges above the cost for provisioning such a cage of similar
                dimensions and material to a single collocating party. In addition, the incumbent must prorate the
                charge for site conditioning and preparation undertaken by the incumbent to construct the shared
                collocation cage or condition the space for collocation use, regardless of how many carriers actually
                collocate in that cage, by determining the total charge for site preparation and allocating that charge
                to a collocating carrier based on the percentage of the total space utilized by that carrier. An
                incumbent LEC must make shared collocation space available in single-bay increments or their
                equivalent, i.e., a competing carrier can purchase space in increments small enough to collocate a
                single rack, or bay, of equipment.

            (2) Cageless collocation. Incumbent LECs must allow competitors to collocate without requiring the
                construction of a cage or similar structure. Incumbent LECs must permit collocating carriers to have
                direct access to their equipment. An incumbent LEC may not require competitors to use an
                intermediate interconnection arrangement in lieu of direct connection to the incumbent's network if
                technically feasible. An incumbent LEC must make cageless collocation space available in single-
                bay increments, meaning that a competing carrier can purchase space in increments small enough
                to collocate a single rack, or bay, of equipment.

            (3) Adjacent space collocation. An incumbent LEC must make available, where physical collocation
                space is legitimately exhausted in a particular incumbent LEC structure, collocation in adjacent
                controlled environmental vaults, controlled environmental huts, or similar structures located at the
                incumbent LEC premises to the extent technically feasible. The incumbent LEC must permit a
                requesting telecommunications carrier to construct or otherwise procure such an adjacent structure,
                subject only to reasonable safety and maintenance requirements. The incumbent must provide
                power and physical collocation services and facilities, subject to the same nondiscrimination
                requirements as applicable to any other physical collocation arrangement. The incumbent LEC must
                permit the requesting carrier to place its own equipment, including, but not limited to, copper cables,
                coaxial cables, fiber cables, and telecommunications equipment, in adjacent facilities constructed by
                the incumbent LEC, the requesting carrier, or a third-party. If physical collocation space becomes
                available in a previously exhausted incumbent LEC structure, the incumbent LEC must not require a

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Interconnection

                 carrier to move, or prohibit a competitive LEC from moving, a collocation arrangement into that
                 structure. Instead, the incumbent LEC must continue to allow the carrier to collocate in any adjacent
                 controlled environmental vault, controlled environmental vault, or similar structure that the carrier
                 has constructed or otherwise procured.

      (l)   An incumbent LEC must offer to provide and provide all forms of physical collocation (i.e., caged,
            cageless, shared, and adjacent) within the following deadlines, except to the extent a state sets its own
            deadlines or the incumbent LEC has demonstrated to the state commission that physical collocation is
            not practical for technical reasons or because of space limitations.

            (1) Within ten days after receiving an application for physical collocation, an incumbent LEC must inform
                the requesting carrier whether the application meets each of the incumbent LEC's established
                collocation standards. A requesting carrier that resubmits a revised application curing any
                deficiencies in an application for physical collocation within ten days after being informed of them
                retains its position within any collocation queue that the incumbent LEC maintains pursuant to
                paragraph (f)(1) of this section.

            (2) Except as stated in paragraphs (l)(3) and (l)(4) of this section, an incumbent LEC must complete
                provisioning of a requested physical collocation arrangement within 90 days after receiving an
                application that meets the incumbent LEC's established collocation application standards.

            (3) An incumbent LEC need not meet the deadline set forth in paragraph (l)(2) of this section if, after
                receipt of any price quotation provided by the incumbent LEC, the telecommunications carrier
                requesting collocation does not notify the incumbent LEC that physical collocation should proceed.

            (4) If, within seven days of the requesting carrier's receipt of any price quotation provided by the
                incumbent LEC, the telecommunications carrier requesting collocation does not notify the
                incumbent LEC that physical collocation should proceed, then the incumbent LEC need not complete
                provisioning of a requested physical collocation arrangement until 90 days after receiving such
                notification from the requesting telecommunications carrier.

[61 FR 45619, Aug. 28, 1996, as amended at 64 FR 23242, Apr. 30, 1999; 65 FR 54439, Sept. 8, 2000; 66 FR 43521, Aug. 20, 2001]

§ 51.325 Notice of network changes: Public notice requirement.
     (a) An incumbent local exchange carrier (“LEC”) must provide public notice regarding any network change
         that:

            (1) Will affect a competing service provider's performance or ability to provide service;

            (2) Will affect the incumbent LEC's interoperability with other service providers; or

            (3) Will result in a copper retirement, which is defined for purposes of this subpart as:

                  (i)   The removal or disabling of copper loops, subloops, or the feeder portion of such loops or
                        subloops; or

                 (ii) The replacement of such loops with fiber-to-the-home loops or fiber-to-the-curb loops, as those
                      terms are defined in § 51.319(a)(3).

     (b) For purposes of this section, interoperability means the ability of two or more facilities, or networks, to be
         connected, to exchange information, and to use the information that has been exchanged.

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     (c) For the purposes of §§ 51.325 through 51.335, the term services means telecommunications services or
         information services.

[61 FR 47351, Sept. 6, 1996, as amended at 64 FR 14148, Mar. 24, 1999; 68 FR 52305, Sept. 2, 2003; 69 FR 77954, Dec. 29, 2004;
80 FR 63371, Oct. 19, 2015; 82 FR 61477, Dec. 28, 2017; 83 FR 31675, July 9, 2018]

§ 51.327 Notice of network changes: Content of notice.
     (a) Public notice of planned network changes must, at a minimum, include:

           (1) The carrier's name and address;

           (2) The name and telephone number of a contact person who can supply additional information
               regarding the planned changes;

           (3) The implementation date of the planned changes;

           (4) The location(s) at which the changes will occur;

           (5) A description of the type of changes planned (Information provided to satisfy this requirement must
               include, as applicable, but is not limited to, references to technical specifications, protocols, and
               standards regarding transmission, signaling, routing, and facility assignment as well as references to
               technical standards that would be applicable to any new technologies or equipment, or that may
               otherwise affect interconnection); and

           (6) A description of the reasonably foreseeable impact of the planned changes.

     (b) The incumbent LEC also shall follow, as necessary, procedures relating to confidential or proprietary
         information contained in § 51.335.

[61 FR 47351, Sept. 6, 1996]

§ 51.329 Notice of network changes: Methods for providing notice.
     (a) In providing the required notice to the public of network changes, an incumbent LEC may use one of the
         following methods:

           (1) Filing a public notice with the Commission; or

           (2) Providing public notice through industry fora, industry publications, or the carrier's publicly
               accessible Internet site. If an incumbent LEC uses any of the methods specified in paragraph (a)(2)
               of this section, it also must file a certification with the Commission that includes:

                 (i)   A statement that identifies the proposed changes;

                 (ii) A statement that public notice has been given in compliance with §§ 51.325 through 51.335;
                      and

                (iii) A statement identifying the location of the change information and describing how this
                      information can be obtained.

     (b) Until the planned change is implemented, an incumbent LEC must keep the notice available for public
         inspection, and amend the notice to keep the information complete, accurate and up-to-date.

     (c) Specific filing requirements. Commission filings under this section must be made as follows:

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           (1) The public notice or certification must be labeled with one of the following titles, as appropriate:
               “Public Notice of Network Change Under Rule 51.329(a),” “Certification of Public Notice of Network
               Change Under Rule 51.329(a),” “Short Term Public Notice Under Rule 51.333(a),” “Certification of
               Short Term Public Notice Under Rule 51.333(a),” “Public Notice of Copper Retirement Under Rule
               51.333,” or “Certification of Public Notice of Copper Retirement Under Rule 51.333.”

           (2) The incumbent LEC's public notice and any associated certifications shall be filed through the
               Commission's Electronic Comment Filing System (ECFS), using the “Submit a Non-Docketed Filing”
               module. All subsequent filings responsive to a notice may be filed using the Commission's ECFS
               under the docket number set forth in the Commission's public notice for the proceeding. If
               necessary, subsequent filings responsive to a notice also may be filed by sending one paper copy of
               the filing to “Secretary, Federal Communications Commission, Washington, DC 20554” and one
               paper copy of the filing to “Federal Communications Commission, Wireline Competition Bureau,
               Competition Policy Division, Washington, DC 20554.” For notices filed using the Commission's ECFS,
               the date on which the filing is received by that system will be considered the official filing date. For
               notices filed via paper copy, the date on which the filing is received by the Secretary or the FCC
               Mailroom is considered the official filing date. All subsequent filings responsive to a notice shall refer
               to the ECFS docket number assigned to the notice.

[61 FR 47351, Sept. 6, 1996, as amended at 67 FR 13225, Mar. 21, 2002; 71 FR 65750, Nov. 9, 2006; 80 FR 1588, Jan. 13, 2015; 81
FR 62655, Sept. 12, 2016; 82 FR 61477, Dec. 28, 2017; 83 FR 2557, Jan. 18, 2018]

§ 51.331 Notice of network changes: Timing of notice.
     (a) An incumbent LEC shall give public notice of planned changes at the make/buy point, as defined in
         paragraph (b) of this section, but at least 12 months before implementation, except as provided below:

           (1) If the changes can be implemented within twelve months of the make/buy point, public notice must
               be given at the make/buy point, but at least six months before implementation.

           (2) If the changes can be implemented within six months of the make/buy point, public notice may be
               given pursuant to the short term notice procedures provided in § 51.333.

     (b) For purposes of this section, the make/buy point is the time at which an incumbent LEC decides to make
         for itself, or to procure from another entity, any product the design of which affects or relies on a new or
         changed network interface. If an incumbent LEC's planned changes do not require it to make or to procure
         a product, then the make/buy point is the point at which the incumbent LEC makes a definite decision to
         implement a network change.

           (1) For purposes of this section, a product is any hardware r software for use in an incumbent LEC's
               network or in conjunction with its facilities that, when installed, could affect the compatibility of an
               interconnected service provider's network, facilities or services with an incumbent LEC's existing
               telephone network, facilities or services, or with any of an incumbent carrier's services or
               capabilities.

           (2) For purposes of this section a definite decision is reached when an incumbent LEC determines that
               the change is warranted, establishes a timetable for anticipated implementation, and takes any
               action toward implementation of the change within its network.

[61 FR 47352, Sept. 6, 1996, as amended at 68 FR 52305, Sept. 2, 2003; 69 FR 77954, Dec. 29, 2004; 80 FR 63371, Oct. 19, 2015]

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§ 51.333 Notice of network changes: Short term notice, objections thereto and objections to
copper retirement notices.
     (a) Certificate of service. If an incumbent LEC wishes to provide less than six months' notice of planned
         network changes, or provide notice of a planned copper retirement, the public notice or certification that it
         files with the Commission must include a certificate of service in addition to the information required by §
         51.327(a) or § 51.329(a)(2), as applicable. The certificate of service shall include:

           (1) A statement that, at least five business days in advance of its filing with the Commission, the
               incumbent LEC served a copy of its public notice upon each telephone exchange service provider
               that directly interconnects with the incumbent LEC's network, provided that, with respect to copper
               retirement notices, such service may be made by postings on the incumbent LEC's website if the
               directly interconnecting telephone exchange service provider has agreed to receive notice by website
               postings; and

           (2) The name and address of each such telephone exchange service provider upon which the notice was
               served.

     (b) Implementation date. The Commission will release a public notice of filings of such short term notices or
         copper retirement notices. The effective date of the network changes referenced in those filings shall be
         subject to the following requirements:

           (1) Short term notice. Short term notices shall be deemed final on the tenth business day after the
               release of the Commission's public notice, unless an objection is filed pursuant to paragraph (c) of
               this section.

           (2) Copper retirement notice. Notices of copper retirement, as defined in § 51.325(a)(3), shall be deemed
               final on the 90th day after the release of the Commission's public notice of the filing, unless an
               objection is filed pursuant to paragraph (c) of this section, except that notices of copper retirement
               involving copper facilities not being used to provision services to any customers shall be deemed
               final on the 15th day after the release of the Commission's public notice of the filing. Incumbent LEC
               copper retirement notices shall be subject to the short-term notice provisions of this section, but
               under no circumstances may an incumbent LEC provide less than 90 days' notice of such a change
               except where the copper facilities are not being used to provision services to any customers.

     (c) Objection procedures for short term notice and copper retirement notices. An objection to an incumbent
         LEC's short term notice or to its copper retirement notice may be filed by an information service provider
         or telecommunications service provider that directly interconnects with the incumbent LEC's network.
         Such objections must be filed with the Commission, and served on the incumbent LEC, no later than the
         ninth business day following the release of the Commission's public notice. All objections filed under this
         section must:

           (1) State specific reasons why the objector cannot accommodate the incumbent LEC's changes by the
               date stated in the incumbent LEC's public notice and must indicate any specific technical
               information or other assistance required that would enable the objector to accommodate those
               changes;

           (2) List steps the objector is taking to accommodate the incumbent LEC's changes on an expedited
               basis;

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           (3) State the earliest possible date (not to exceed six months from the date the incumbent LEC gave its
               original public notice under this section) by which the objector anticipates that it can accommodate
               the incumbent LEC's changes, assuming it receives the technical information or other assistance
               requested under paragraph (c)(1) of this section;

           (4) Provide any other information relevant to the objection; and

           (5) Provide the following affidavit, executed by the objector's president, chief executive officer, or other
               corporate officer or official, who has appropriate authority to bind the corporation, and knowledge of
               the details of the objector's inability to adjust its network on a timely basis:

                “I, (name and title), under oath and subject to penalty for perjury, certify that I have read this
                objection, that the statements contained in it are true, that there is good ground to support the
                objection, and that it is not interposed for purposes of delay. I have appropriate authority to make
                this certification on behalf of (objector) and I agree to provide any information the Commission may
                request to allow the Commission to evaluate the truthfulness and validity of the statements
                contained in this objection.”

     (d) Response to objections. If an objection is filed, an incumbent LEC shall have until no later than the
         fourteenth business day following the release of the Commission's public notice to file with the
         Commission a response to the objection and to serve the response on all parties that filed objections. An
         incumbent LEC's response must:

           (1) Provide information responsive to the allegations and concerns identified by the objectors;

           (2) State whether the implementation date(s) proposed by the objector(s) are acceptable;

           (3) Indicate any specific technical assistance that the incumbent LEC is willing to give to the objectors;
               and

           (4) Provide any other relevant information.

     (e) Resolution. If an objection is filed pursuant to paragraph (c) of this section, then the Chief, Wireline
         Competition Bureau, will issue an order determining a reasonable public notice period, provided however,
         that if an incumbent LEC does not file a response within the time period allotted, or if the incumbent LEC's
         response accepts the latest implementation date stated by an objector, then the incumbent LEC's public
         notice shall be deemed amended to specify the implementation date requested by the objector, without
         further Commission action. An incumbent LEC must amend its public notice to reflect any change in the
         applicable implementation date pursuant to § 51.329(b).

     (f) Resolution of objections to copper retirement notices. An objection to a notice that an incumbent LEC
         intends to retire copper, as defined in § 51.325(a)(3) shall be deemed denied 90 days after the date on
         which the Commission releases public notice of the incumbent LEC filing, unless the Commission rules
         otherwise within that time. Until the Commission has either ruled on an objection or the 90-day period for
         the Commission's consideration has expired, an incumbent LEC may not retire those copper facilities at
         issue.

     (g) Limited exemption from advance notice and timing requirements —

           (1) Force majeure events.

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                 (i)   Notwithstanding the requirements of this section, if in response to a force majeure event, an
                       incumbent LEC invokes its disaster recovery plan, the incumbent LEC will be exempted during
                       the period when the plan is invoked (up to a maximum 180 days) from all advanced notice and
                       waiting period requirements under this section associated with network changes that result
                       from or are necessitated as a direct result of the force majeure event.

                 (ii) As soon as practicable, during the exemption period, the incumbent LEC must continue to
                      comply with § 51.325(a), include in its public notice the date on which the carrier invoked its
                      disaster recovery plan, and must communicate with other directly interconnected telephone
                      exchange service providers to ensure that such carriers are aware of any changes being made
                      to their networks that may impact those carriers' operations.

                (iii) If an incumbent LEC requires relief from the notice requirements under this section longer than
                      180 days after it invokes the disaster recovery plan, the incumbent LEC must request such
                      authority from the Commission. Any such request must be accompanied by a status report
                      describing the incumbent LEC's progress and providing an estimate of when the incumbent LEC
                      expects to be able to resume compliance with the notice requirements under this section.

                (iv) For purposes of this section, “force majeure” means a highly disruptive event beyond the control
                     of the incumbent LEC, such as a natural disaster or a terrorist attack.

                 (v) For purposes of this section, “disaster recovery plan” means a disaster response plan
                     developed by the incumbent LEC for the purpose of responding to a force majeure event.

           (2) Other events outside an incumbent LEC's control.

                 (i)   Notwithstanding the requirements of this section, if in response to circumstances outside of its
                       control other than a force majeure event addressed in paragraph (g)(1) of this section, an
                       incumbent LEC cannot comply with the timing requirement set forth in paragraphs (b)(1) or (2)
                       of this section, hereinafter referred to as the waiting period, the incumbent LEC must give
                       notice of the network change as soon as practicable and will be entitled to a reduced waiting
                       period commensurate with the circumstances at issue.

                 (ii) A short term network change or copper retirement notice subject to paragraph (g)(2) of this
                      section must include a brief explanation of the circumstances necessitating the reduced
                      waiting period and how the incumbent LEC intends to minimize the impact of the reduced
                      waiting period on directly interconnected telephone exchange service providers.

                (iii) For purposes of this section, circumstances outside of the incumbent LEC's control include
                      federal, state, or local municipal mandates and unintentional damage to the incumbent LEC's
                      network facilities not caused by the incumbent LEC.

[61 FR 47352, Sept. 6, 1996, as amended at 67 FR 13226, Mar. 21, 2002; 68 FR 52305, Sept. 2, 2003; 69 FR 77954; Dec. 29, 2004;
80 FR 63371, Oct. 19, 2015; 82 FR 61477, Dec. 28, 2017; 83 FR 31675, July 9, 2018]

§ 51.335 Notice of network changes: Confidential or proprietary information.
     (a) If an incumbent LEC claims that information otherwise required to be disclosed is confidential or
         proprietary, the incumbent LEC's public notice must include, in addition to the information identified in §
         51.327(a), a statement that the incumbent LEC will make further information available to those signing a
         nondisclosure agreement.

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     (b) Tolling the public notice period. Upon receipt by an incumbent LEC of a competing service provider's
         request for disclosure of confidential or proprietary information, the applicable public notice period will be
         tolled until the parties agree on the terms of a nondisclosure agreement. An incumbent LEC receiving
         such a request must amend its public notice as follows:

           (1) On the date it receives a request from a competing service provider for disclosure of confidential or
               proprietary information, to state that the notice period is tolled; and

           (2) On the date the nondisclosure agreement is finalized, to specify a new implementation date.

[61 FR 47352, Sept. 6, 1996]

Subpart E—Exemptions, Suspensions, and Modifications of Requirements of Section 251 of the
Act
§ 51.401 State authority.
A state commission shall determine whether a telephone company is entitled, pursuant to section 251(f) of the Act,
to exemption from, or suspension or modification of, the requirements of section 251 of the Act. Such
determinations shall be made on a case-by-case basis.

§ 51.403 Carriers eligible for suspension or modification under section 251(f)(2) of the Act.
A LEC is not eligible for a suspension or modification of the requirements of section 251(b) or section 251(c) of the
Act pursuant to section 251(f)(2) of the Act if such LEC, at the holding company level, has two percent or more of
the subscriber lines installed in the aggregate nationwide.

§ 51.405 Burden of proof.
     (a) Upon receipt of a bona fide request for interconnection, services, or access to unbundled network
         elements, a rural telephone company must prove to the state commission that the rural telephone
         company should be entitled, pursuant to section 251(f)(1) of the Act, to continued exemption from the
         requirements of section 251(c) of the Act.

     (b) A LEC with fewer than two percent of the nation's subscriber lines installed in the aggregate nationwide
         must prove to the state commission, pursuant to section 251(f)(2) of the Act, that it is entitled to a
         suspension or modification of the application of a requirement or requirements of section 251(b) or
         251(c) of the Act.

     (c) In order to justify continued exemption under section 251(f)(1) of the Act once a bona fide request has
         been made, an incumbent LEC must offer evidence that the application of the requirements of section
         251(c) of the Act would be likely to cause undue economic burden beyond the economic burden that is
         typically associated with efficient competitive entry.

     (d) In order to justify a suspension or modification under section 251(f)(2) of the Act, a LEC must offer
         evidence that the application of section 251(b) or section 251(c) of the Act would be likely to cause undue
         economic burden beyond the economic burden that is typically associated with efficient competitive
         entry.

Subpart F—Pricing of Elements

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§ 51.501 Scope.
     (a) The rules in this subpart apply to the pricing of network elements, interconnection, and methods of
         obtaining access to unbundled elements, including physical collocation and virtual collocation.

     (b) As used in this subpart, the term “element” includes network elements, interconnection, and methods of
         obtaining interconnection and access to unbundled elements.

§ 51.503 General pricing standard.
     (a) An incumbent LEC shall offer elements to requesting telecommunications carriers at rates, terms, and
         conditions that are just, reasonable, and nondiscriminatory.

     (b) An incumbent LEC's rates for each element it offers shall comply with the rate structure rules set forth in
         §§ 51.507 and 51.509, and shall be established, at the election of the state commission—

           (1) Pursuant to the forward-looking economic cost-based pricing methodology set forth in §§ 51.505
               and 51.511; or

           (2) Consistent with the proxy ceilings and ranges set forth in § 51.513.

     (c) The rates that an incumbent LEC assesses for elements shall not vary on the basis of the class of
         customers served by the requesting carrier, or on the type of services that the requesting carrier
         purchasing such elements uses them to provide.

§ 51.505 Forward-looking economic cost.
     (a) In general. The forward-looking economic cost of an element equals the sum of:

           (1) The total element long-run incremental cost of the element, as described in paragraph (b); and

           (2) A reasonable allocation of forward-looking common costs, as described in paragraph (c).

     (b) Total element long-run incremental cost. The total element long-run incremental cost of an element is the
         forward-looking cost over the long run of the total quantity of the facilities and functions that are directly
         attributable to, or reasonably identifiable as incremental to, such element, calculated taking as a given the
         incumbent LEC's provision of other elements.

           (1) Efficient network configuration. The total element long-run incremental cost of an element should be
               measured based on the use of the most efficient telecommunications technology currently available
               and the lowest cost network configuration, given the existing location of the incumbent LEC's wire
               centers.

           (2) Forward-looking cost of capital. The forward-looking cost of capital shall be used in calculating the
               total element long-run incremental cost of an element.

           (3) Depreciation rates. The depreciation rates used in calculating forward-looking economic costs of
               elements shall be economic depreciation rates.

     (c) Reasonable allocation of forward-looking common costs —

           (1) Forward-looking common costs. Forward-looking common costs are economic costs efficiently
               incurred in providing a group of elements or services (which may include all elements or services
               provided by the incumbent LEC) that cannot be attributed directly to individual elements or services.

           (2) Reasonable allocation.

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                 (i)   The sum of a reasonable allocation of forward-looking common costs and the total element
                       long-run incremental cost of an element shall not exceed the stand-alone costs associated with
                       the element. In this context, stand-alone costs are the total forward-looking costs, including
                       corporate costs, that would be incurred to produce a given element if that element were
                       provided by an efficient firm that produced nothing but the given element.

                 (ii) The sum of the allocation of forward-looking common costs for all elements and services shall
                      equal the total forward-looking common costs, exclusive of retail costs, attributable to
                      operating the incumbent LEC's total network, so as to provide all the elements and services
                      offered.

     (d) Factors that may not be considered. The following factors shall not be considered in a calculation of the
         forward-looking economic cost of an element:

           (1) Embedded costs. Embedded costs are the costs that the incumbent LEC incurred in the past and that
               are recorded in the incumbent LEC's books of accounts;

           (2) Retail costs. Retail costs include the costs of marketing, billing, collection, and other costs
               associated with offering retail telecommunications services to subscribers who are not
               telecommunications carriers, described in § 51.609;

           (3) Opportunity costs. Opportunity costs include the revenues that the incumbent LEC would have
               received for the sale of telecommunications services, in the absence of competition from
               telecommunications carriers that purchase elements; and

           (4) Revenues to subsidize other services. Revenues to subsidize other services include revenues
               associated with elements or telecommunications service offerings other than the element for which
               a rate is being established.

     (e) Cost study requirements. An incumbent LEC must prove to the state commission that the rates for each
         element it offers do not exceed the forward-looking economic cost per unit of providing the element,
         using a cost study that complies with the methodology set forth in this section and § 51.511.

           (1) A state commission may set a rate outside the proxy ranges or above the proxy ceilings described in
               § 51.513 only if that commission has given full and fair effect to the economic cost based pricing
               methodology described in this section and § 51.511 in a state proceeding that meets the
               requirements of paragraph (e)(2) of this section.

           (2) Any state proceeding conducted pursuant to this section shall provide notice and an opportunity for
               comment to affected parties and shall result in the creation of a written factual record that is
               sufficient for purposes of review. The record of any state proceeding in which a state commission
               considers a cost study for purposes of establishing rates under this section shall include any such
               cost study.

§ 51.507 General rate structure standard.
     (a) Element rates shall be structured consistently with the manner in which the costs of providing the
         elements are incurred.

     (b) The costs of dedicated facilities shall be recovered through flat-rated charges.

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     (c) The costs of shared facilities shall be recovered in a manner that efficiently apportions costs among
         users. Costs of shared facilities may be apportioned either through usage-sensitive charges or capacity-
         based flat-rated charges, if the state commission finds that such rates reasonably reflect the costs
         imposed by the various users.

     (d) Recurring costs shall be recovered through recurring charges, unless an incumbent LEC proves to a state
         commission that such recurring costs are de minimis. Recurring costs shall be considered de minimis
         when the costs of administering the recurring charge would be excessive in relation to the amount of the
         recurring costs.

     (e) State commissions may, where reasonable, require incumbent LECs to recover nonrecurring costs through
         recurring charges over a reasonable period of time. Nonrecurring charges shall be allocated efficiently
         among requesting telecommunications carriers, and shall not permit an incumbent LEC to recover more
         than the total forward-looking economic cost of providing the applicable element.

     (f) State commissions shall establish different rates for elements in at least three defined geographic areas
         within the state to reflect geographic cost differences.

           (1) To establish geographically-deaveraged rates, state commissions may use existing density-related
               zone pricing plans described in § 69.123 of this chapter, or other such cost-related zone plans
               established pursuant to state law.

           (2) In states not using such existing plans, state commissions must create a minimum of three cost-
               related rate zones.

[61 FR 45619, Aug. 29, 1996, as amended at 64 FR 32207, June 16, 1999; 64 FR 68637, Dec. 8, 1999]

§ 51.509 Rate structure standards for specific elements.
In addition to the general rules set forth in § 51.507, rates for specific elements shall comply with the following rate
structure rules.

     (a) Local loop and subloop. Loop and subloop costs shall be recovered through flat-rated charges.

     (b) Local switching. Local switching costs shall be recovered through a combination of a flat-rated charge for
         line ports and one or more flat-rated or per-minute usage charges for the switching matrix and for trunk
         ports.

     (c) Dedicated transmission links. Dedicated transmission link costs shall be recovered through flat-rated
         charges.

     (d) Shared transmission facilities between tandem switches and end offices. The costs of shared
         transmission facilities between tandem switches and end offices may be recovered through usage-
         sensitive charges, or in another manner consistent with the manner that the incumbent LEC incurs those
         costs.

     (e) Tandem switching. Tandem switching costs may be recovered through usage-sensitive charges, or in
         another manner consistent with the manner that the incumbent LEC incurs those costs.

     (f) Signaling and call-related database services. Signaling and call-related database service costs shall be
         usage-sensitive, based on either the number of queries or the number of messages, with the exception of
         the dedicated circuits known as signaling links, the cost of which shall be recovered through flat-rated
         charges.
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     (g) Collocation. Collocation costs shall be recovered consistent with the rate structure policies established in
         the Expanded Interconnection proceeding, CC Docket No. 91–141.

     (h) Network interface device. An incumbent LEC must establish a price for the network interface device when
         that unbundled network element is purchased on a stand-alone basis pursuant to § 51.319(c).

[61 FR 45619, Aug. 29, 1996, as amended at 68 FR 52306, Sept. 2, 2003]

§ 51.511 Forward-looking economic cost per unit.
     (a) The forward-looking economic cost per unit of an element equals the forward-looking economic cost of
         the element, as defined in § 51.505, divided by a reasonable projection of the sum of the total number of
         units of the element that the incumbent LEC is likely to provide to requesting telecommunications carriers
         and the total number of units of the element that the incumbent LEC is likely to use in offering its own
         services, during a reasonable measuring period.

     (b)

           (1) With respect to elements that an incumbent LEC offers on a flat-rate basis, the number of units is
               defined as the discrete number of elements (e.g., local loops or local switch ports) that the
               incumbent LEC uses or provides.

           (2) With respect to elements that an incumbent LEC offers on a usage-sensitive basis, the number of
               units is defined as the unit of measurement of the usage (e.g., minutes of use or call-related
               database queries) of the element.

§ 51.513 Proxies for forward-looking economic cost.
     (a) A state commission may determine that the cost information available to it with respect to one or more
         elements does not support the adoption of a rate or rates that are consistent with the requirements set
         forth in §§ 51.505 and 51.511. In that event, the state commission may establish a rate for an element
         that is consistent with the proxies specified in this section, provided that:

           (1) Any rate established through use of such proxies shall be superseded once the state commission
               has completed review of a cost study that complies with the forward-looking economic cost based
               pricing methodology described in §§ 51.505 and 51.511, and has concluded that such study is a
               reasonable basis for establishing element rates; and

           (2) The state commission sets forth in writing a reasonable basis for its selection of a particular rate for
               the element.

     (b) The constraints on proxy-based rates described in this section apply on a geographically averaged basis.
         For purposes of determining whether geographically deaveraged rates for elements comply with the
         provisions of this section, a geographically averaged proxy-based rate shall be computed based on the
         weighted average of the actual, geographically deaveraged rates that apply in separate geographic areas
         in a state.

     (c) Proxies for specific elements —

           (1) Local loops. For each state listed below, the proxy-based monthly rate for unbundled local loops, on a
               statewide weighted average basis, shall be no greater than the figures listed in the table below. (The
               Commission has not established a default proxy ceiling for loop rates in Alaska.)

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                                                      Table

                                              State           Proxy ceiling
                 Alabama                                                          $17.25
                 Arizona                                                           12.85
                 Arkansas                                                          21.18
                 California                                                        11.10
                 Colorado                                                          14.97
                 Connecticut                                                       13.23
                 Delaware                                                          13.24
                 District of Columbia                                              10.81
                 Florida                                                           13.68
                 Georgia                                                           16.09
                 Hawaii                                                            15.27
                 Idaho                                                             20.16
                 Illinois                                                          13.12
                 Indiana                                                           13.29
                 Iowa                                                              15.94
                 Kansas                                                            19.85
                 Kentucky                                                          16.70
                 Louisiana                                                         16.98
                 Maine                                                             18.69
                 Maryland                                                          13.36
                 Massachusetts                                                       9.83
                 Michigan                                                          15.27
                 Minnesota                                                         14.81
                 Mississippi                                                       21.97
                 Missouri                                                          18.32
                 Montana                                                           25.18
                 Nebraska                                                          18.05
                 Nevada                                                            18.95
                 New Hampshire                                                     16.00
                 New Jersey                                                        12.47
                 New Mexico                                                        18.66
                 New York                                                          11.75
                 North Carolina                                                    16.71
                 North Dakota                                                      25.36
                 Ohio                                                              15.73
                 Oklahoma                                                          17.63
                 Oregon                                                            15.44
                 Pennsylvania                                                      12.30

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                                              State                                         Proxy ceiling
                 Puerto Rico                                                                                     12.47
                 Rhode Island                                                                                    11.48
                 South Carolina                                                                                  17.07
                 South Dakota                                                                                    25.33
                 Tennessee                                                                                       17.41
                 Texas                                                                                           15.49
                 Utah                                                                                            15.12
                 Vermont                                                                                         20.13
                 Virginia                                                                                        14.13
                 Washington                                                                                      13.37
                 West Virginia                                                                                   19.25
                 Wisconsin                                                                                       15.94
                 Wyoming                                                                                         25.11

           (2) Local switching.

                 (i)   The blended proxy-based rate for the usage-sensitive component of the unbundled local
                       switching element, including the switching matrix, the functionalities used to provide vertical
                       features, and the trunk ports, shall be no greater than 0.4 cents ($0.004) per minute, and no less
                       than 0.2 cents ($0.002) per minute, except that, where a state commission has, before August
                       8, 1996, established a rate less than or equal to 0.5 cents ($0.005) per minute, that rate may be
                       retained pending completion of a forward-looking economic cost study. If a flat-rated charge is
                       established for these components, it shall be converted to a per-minute rate by dividing the
                       projected average minutes of use per flat-rated subelement, for purposes of assessing
                       compliance with this proxy. A weighted average of such flat-rate or usage-sensitive charges
                       shall be used in appropriate circumstances, such as when peak and off-peak charges are used.

                 (ii) The blended proxy-based rate for the line port component of the local switching element shall
                      be no less than $1.10, and no more than $2.00, per line port per month for ports used in the
                      delivery of basic residential and business exchange services.

           (3) Dedicated transmission links. The proxy-based rates for dedicated transmission links shall be no
               greater than the incumbent LEC's tariffed interstate charges for comparable entrance facilities or
               direct-trunked transport offerings, as described in §§ 69.110 and 69.112 of this chapter.

           (4) Shared transmission facilities between tandem switches and end offices. The proxy-based rates for
               shared transmission facilities between tandem switches and end offices shall be no greater than the
               weighted per-minute equivalent of DS1 and DS3 interoffice dedicated transmission link 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 a loading factor of 9,000 minutes per month per voice-grade circuit, as described in § 69.112
               of this chapter.

           (5) Tandem switching. The proxy-based rate for tandem switching shall be no greater than 0.15 cents
               ($0.0015) per minute of use.

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           (6) Collocation. To the extent that the incumbent LEC offers a comparable form of collocation in its
               interstate expanded interconnection tariffs, as described in §§ 64.1401 and 69.121 of this chapter,
               the proxy-based rates for collocation shall be no greater than the effective rates for equivalent
               services in the interstate expanded interconnection tariff. To the extent that the incumbent LEC does
               not offer a comparable form of collocation in its interstate expanded interconnection tariffs, a state
               commission may, in its discretion, establish a proxy-based rate, provided that the state commission
               sets forth in writing a reasonable basis for concluding that its rate would approximate the result of a
               forward-looking economic cost study, as described in § 51.505.

           (7) Signaling, call-related database, and other elements. To the extent that the incumbent LEC has
               established rates for offerings comparable to other elements in its interstate access tariffs, and has
               provided cost support for those rates pursuant to § 61.49(h) of this chapter, the proxy-based rates
               for those elements shall be no greater than the effective rates for equivalent services in the
               interstate access tariffs. In other cases, the proxy-based rate shall be no greater than a rate based on
               direct costs plus a reasonable allocation of overhead loadings, pursuant to § 61.49(h) of this
               chapter.

[61 FR 45619, Aug. 29, 1996, as amended at 61 FR 52709, Oct. 8, 1996]

§ 51.515 Application of access charges.
    (a)–(b) [Reserved]

     (c) Notwithstanding §§ 51.505, 51.511, and 51.513(d)(2) and paragraph (a) of this section, an incumbent LEC
         may assess upon telecommunications carriers that purchase unbundled local switching elements, as
         described in § 51.319(c)(1), for intrastate toll minutes of use traversing such unbundled local switching
         elements, intrastate access charges comparable to those listed in paragraph (b) and any explicit
         intrastate universal service mechanism based on access charges, only until the earliest of the following,
         and not thereafter:

           (1) June 30, 1997;

           (2) The effective date of a state commission decision that an incumbent LEC may not assess such
               charges; or

           (3) With respect to a Bell operating company only, the date on which that company is authorized to offer
               in-region interLATA service in the state pursuant to section 271 of the Act. The end date for Bell
               operating companies that are authorized to offer interLATA service shall apply only to the recovery of
               access charges in those states in which the Bell operating company is authorized to offer such
               service.

     (d) Interstate access charges described in part 69 shall not be assessed by incumbent LECs on each element
         purchased by requesting carriers providing both telephone exchange and exchange access services to
         such requesting carriers' end users.

[61 FR 45619, Aug. 29, 1996, as amended at 62 FR 45587, Aug. 28, 1997; 71 FR 65750, Nov. 9, 2006]

Subpart G—Resale

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§ 51.601 Scope of resale rules.
The provisions of this subpart govern the terms and conditions under which LECs offer telecommunications
services to requesting telecommunications carriers for resale.

§ 51.603 Resale obligation of all local exchange carriers.
     (a) A LEC shall make its telecommunications services available for resale to requesting telecommunications
         carriers on terms and conditions that are reasonable and non-discriminatory.

     (b) A LEC must provide services to requesting telecommunications carriers for resale that are equal in quality,
         subject to the same conditions, and provided within the same provisioning time intervals that the LEC
         provides these services to others, including end users.

§ 51.605 Additional obligations of incumbent local exchange carriers.
     (a) An incumbent LEC shall offer to any requesting telecommunications carrier any telecommunications
         service that the incumbent LEC offers on a retail basis to subscribers that are not telecommunications
         carriers for resale at wholesale rates that are, at the election of the state commission—

           (1) Consistent with the avoided cost methodology described in §§ 51.607 and 51.609; or

           (2) Interim wholesale rates, pursuant to § 51.611.

     (b) For purposes of this subpart, exchange access services, as defined in section 3 of the Act, shall not be
         considered to be telecommunications services that incumbent LECs must make available for resale at
         wholesale rates to requesting telecommunications carriers.

     (c) For purposes of this subpart, advanced telecommunications services sold to Internet Service Providers as
         an input component to the Internet Service Providers' retail Internet service offering shall not be
         considered to be telecommunications services offered on a retail basis that incumbent LECs must make
         available for resale at wholesale rates to requesting telecommunications carriers.

     (d) Notwithstanding paragraph (b) of this section, advanced telecommunications services that are classified
         as exchange access services are subject to the obligations of paragraph (a) of this section if such
         services are sold on a retail basis to residential and business end-users that are not telecommunications
         carriers.

     (e) Except as provided in § 51.613, an incumbent LEC shall not impose restrictions on the resale by a
         requesting carrier of telecommunications services offered by the incumbent LEC.

[61 FR 45619, Aug. 29, 1996, as amended at 65 FR 6915, Feb. 11, 2000]

§ 51.607 Wholesale pricing standard.
The wholesale rate that an incumbent LEC may charge for a telecommunications service provided for resale to
other telecommunications carriers shall equal the rate for the telecommunications service, less avoided retail costs,
as described in section 51.609. For purposes of this subpart, exchange access services, as defined in section 3 of
the Act, shall not be considered to be telecommunications services that incumbent LECs must make available for
resale at wholesale rates to requesting telecommunications carriers.

[65 FR 6915, Feb. 11, 2000]

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                                                                                                        47 CFR 51.609
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§ 51.609 Determination of avoided retail costs.
     (a) Except as provided in § 51.611, the amount of avoided retail costs shall be determined on the basis of a
         cost study that complies with the requirements of this section.

     (b) Avoided retail costs shall be those costs that reasonably can be avoided when an incumbent LEC provides
         a telecommunications service for resale at wholesale rates to a requesting carrier.

     (c) For incumbent LECs that are designated as Class A companies under § 32.11 of this chapter, except as
         provided in paragraph (d) of this section, avoided retail costs shall:

           (1) Include as direct costs, the costs recorded in USOA accounts 6611 (product management and sales),
               6613 (product advertising), 6621 (call completion services), 6622, (number services), and 6623
               (customer services) (§§ 32.6611, 32.6613, 32.6621, 32.6622, and 32.6623 of this chapter);

           (2) Include, as indirect costs, a portion of the costs recorded in USOA accounts 6121–6124 (general
               support expenses), 6720 (corporate operations expenses), and uncollectible telecommunications
               revenue included in 5300 (uncollectible revenue) (Secs. 32.6121 through 32.6124, 32.6720 and
               32.5300 of this chapter); and

           (3) Not include plant-specific expenses and plant non-specific expenses, other than general support
               expenses (§§ 32.6112–6114, 32.6211–6565 of this chapter).

     (d) Costs included in accounts 6611, 6613 and 6621–6623 described in paragraph (c) of this section (§§
         32.6611, 32.6613, and 32.6621–6623 of this chapter) may be included in wholesale rates only to the
         extent that the incumbent LEC proves to a state commission that specific costs in these accounts will be
         incurred and are not avoidable with respect to services sold at wholesale, or that specific costs in these
         accounts are not included in the retail prices of resold services. Costs included in accounts 6112–6114
         and 6211–6565 described in paragraph (c) of this section (§§ 32.6112–32.6114, 32.6211–32.6565 of
         this chapter) may be treated as avoided retail costs, and excluded from wholesale rates, only to the extent
         that a party proves to a state commission that specific costs in these accounts can reasonably be
         avoided when an incumbent LEC provides a telecommunications service for resale to a requesting carrier.

     (e) For incumbent LECs that are designated as Class B companies under § 32.11 of this chapter and that
         record information in summary accounts instead of specific USOA accounts, the entire relevant summary
         accounts may be used in lieu of the specific USOA accounts listed in paragraphs (c) and (d) of this
         section.

[61 FR 45619, Aug. 29, 1996, as amended at 67 FR 5700, Feb. 6, 2002; 69 FR 53652, Sept. 2, 2004]

§ 51.611 Interim wholesale rates.
     (a) If a state commission cannot, based on the information available to it, establish a wholesale rate using the
         methodology prescribed in § 51.609, then the state commission may elect to establish an interim
         wholesale rate as described in paragraph (b) of this section.

     (b) The state commission may establish interim wholesale rates that are at least 17 percent, and no more
         than 25 percent, below the incumbent LEC's existing retail rates, and shall articulate the basis for
         selecting a particular discount rate. The same discount percentage rate shall be used to establish interim
         wholesale rates for each telecommunications service.

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     (c) A state commission that establishes interim wholesale rates shall, within a reasonable period of time
         thereafter, establish wholesale rates on the basis of an avoided retail cost study that complies with §
         51.609.

§ 51.613 Restrictions on resale.
     (a) Notwithstanding § 51.605(b), the following types of restrictions on resale may be imposed:

           (1) Cross-class selling. A state commission may permit an incumbent LEC to prohibit a requesting
               telecommunications carrier that purchases at wholesale rates for resale, telecommunications
               services that the incumbent LEC makes available only to residential customers or to a limited class
               of residential customers, from offering such services to classes of customers that are not eligible to
               subscribe to such services from the incumbent LEC.

           (2) Short term promotions. An incumbent LEC shall apply the wholesale discount to the ordinary rate for
               a retail service rather than a special promotional rate only if:

                 (i)   Such promotions involve rates that will be in effect for no more than 90 days; and

                 (ii) The incumbent LEC does not use such promotional offerings to evade the wholesale rate
                      obligation, for example by making available a sequential series of 90-day promotional rates.

     (b) With respect to any restrictions on resale not permitted under paragraph (a), an incumbent LEC may
         impose a restriction only if it proves to the state commission that the restriction is reasonable and
         nondiscriminatory.

     (c) Branding. Where operator, call completion, or directory assistance service is part of the service or service
         package an incumbent LEC offers for resale, failure by an incumbent LEC to comply with reseller
         unbranding or rebranding requests shall constitute a restriction on resale.

           (1) An incumbent LEC may impose such a restriction only if it proves to the state commission that the
               restriction is reasonable and nondiscriminatory, such as by proving to a state commission that the
               incumbent LEC lacks the capability to comply with unbranding or rebranding requests.

           (2) For purposes of this subpart, unbranding or rebranding shall mean that operator, call completion, or
               directory assistance services are offered in such a manner that an incumbent LEC's brand name or
               other identifying information is not identified to subscribers, or that such services are offered in such
               a manner that identifies to subscribers the requesting carrier's brand name or other identifying
               information.

§ 51.615 Withdrawal of services.
When an incumbent LEC makes a telecommunications service available only to a limited group of customers that
have purchased such a service in the past, the incumbent LEC must also make such a service available at wholesale
rates to requesting carriers to offer on a resale basis to the same limited group of customers that have purchased
such a service in the past.

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                                                                                                       47 CFR 51.617
Interconnection

§ 51.617 Assessment of end user common line charge on resellers.
     (a) Notwithstanding the provision in § 69.104(a) of this chapter that the end user common line charge be
         assessed upon end users, an incumbent LEC shall assess this charge, and the charge for changing the
         designated primary interexchange carrier, upon requesting carriers that purchase telephone exchange
         service for resale. The specific end user common line charge to be assessed will depend upon the identity
         of the end user served by the requesting carrier.

     (b) When an incumbent LEC provides telephone exchange service to a requesting carrier at wholesale rates
         for resale, the incumbent LEC shall continue to assess the interstate access charges provided in part 69
         of this chapter, other than the end user common line charge, upon interexchange carriers that use the
         incumbent LEC's facilities to provide interstate or international telecommunications services to the
         interexchange carriers' subscribers.

Subpart H—Reciprocal Compensation for Transport and Termination of Telecommunications
Traffic

Editorial Note: Nomenclature changes to subpart H of part 51 appear at 66 FR 26806, May 15, 2001.

§ 51.700 Purpose of this subpart.
The purpose of this subpart, as revised in 2011 by FCC 11–161 is to establish rules governing the transition of
intercarrier compensation from a calling-party's-network pays system to a default bill-and-keep methodology.
Following the transition, the exchange of telecommunications traffic between and among service providers will, by
default, be governed by bill-and-keep arrangements.

           Note to § 51.700: See FCC 11–161, figure 9 (chart identifying steps in the transition).

[76 FR 73854, Nov. 29, 2011]

§ 51.701 Scope of transport and termination pricing rules.
     (a) Effective December 29, 2011, compensation for telecommunications traffic exchanged between two
         telecommunications carriers that is interstate or intrastate exchange access, information access, or
         exchange services for such access, other than special access, is specified in subpart J of this part. The
         provisions of this subpart apply to Non-Access Reciprocal Compensation for transport and termination of
         Non-Access Telecommunications Traffic between LECs and other telecommunications carriers.

     (b) Non-Access Telecommunications Traffic. For purposes of this subpart, Non-Access Telecommunications
         Traffic means:

           (1) Telecommunications traffic exchanged between a LEC and a telecommunications carrier other than
               a CMRS provider, except for telecommunications traffic that is interstate or intrastate exchange
               access, information access, or exchange services for such access (see FCC 01–131, paragraphs 34,
               36, 39, 42–43); or

           (2) Telecommunications traffic exchanged between a LEC and a CMRS provider that, at the beginning of
               the call, originates and terminates within the same Major Trading Area, as defined in § 24.202(a) of
               this chapter.
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           (3) This definition includes telecommunications traffic exchanged between a LEC and another
               telecommunications carrier in Time Division Multiplexing (TDM) format that originates and/or
               terminates in IP format and that otherwise meets the definitions in paragraphs (b)(1) or (b)(2) of this
               section. Telecommunications traffic originates and/or terminates in IP format if it originates from
               and/or terminates to an end-user customer of a service that requires Internet protocol-compatible
               customer premises equipment.

     (c) Transport. For purposes of this subpart, transport is the transmission and any necessary tandem
         switching of Non-Access Telecommunications Traffic subject to section 251(b)(5) of the
         Communications Act of 1934, as amended, 47 U.S.C. 251(b)(5), from the interconnection point between
         the two carriers to the terminating carrier's end office switch that directly serves the called party, or
         equivalent facility provided by a carrier other than an incumbent LEC.

     (d) Termination. For purposes of this subpart, termination is the switching of Non-Access
         Telecommunications Traffic at the terminating carrier's end office switch, or equivalent facility, and
         delivery of such traffic to the called party's premises.

     (e) Non-Access Reciprocal Compensation. For purposes of this subpart, a Non-Access Reciprocal
         Compensation arrangement between two carriers is either a bill-and-keep arrangement, per § 51.713, or
         an arrangement in which each carrier receives intercarrier compensation for the transport and termination
         of Non-Access Telecommunications Traffic.

[61 FR 45619, Aug. 29, 1996, as amended at 66 FR 26806, May 15, 2001; 76 FR 73855, Nov. 29, 2011]

§ 51.703 Non-Access reciprocal compensation obligation of LECs.
     (a) Each LEC shall establish Non-Access Reciprocal Compensation arrangements for transport and
         termination of Non-Access Telecommunications Traffic with any requesting telecommunications carrier.

     (b) A LEC may not assess charges on any other telecommunications carrier for Non-Access
         Telecommunications Traffic that originates on the LEC's network.

     (c) Notwithstanding any other provision of the Commission's rules, a LEC shall be entitled to assess and
         collect the full charges for the transport and termination of Non-Access Telecommunications Traffic,
         regardless of whether the local exchange carrier assessing the applicable charges itself delivers such
         traffic to the called party's premises or delivers the call to the called party's premises via contractual or
         other arrangements with an affiliated or unaffiliated provider of interconnected VoIP service, as defined in
         47 U.S.C. 153(25), or a non-interconnected VoIP service, as defined in 47 U.S.C. 153(36), that does not
         itself seek to collect Non-Access Reciprocal Compensation charges for the transport and termination of
         that Non-Access Telecommunications Traffic. In no event may the total charges that a LEC may assess
         for such service to the called location exceed the applicable transport and termination rate. For purposes
         of this section, the facilities used by the LEC and affiliated or unaffiliated provider of interconnected VoIP
         service or a non-interconnected VoIP service for the transport and termination of such traffic shall be
         deemed an equivalent facility under § 51.701.

[76 FR 73855, Nov. 29, 2011]

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                                                                                                          47 CFR 51.705
Interconnection

§ 51.705 LECs' rates for transport and termination.
     (a) Notwithstanding any other provision of the Commission's rules, by default, transport and termination for
         Non-Access Telecommunications Traffic exchanged between a local exchange carrier and a CMRS
         provider within the scope of § 51.701(b)(2) shall be pursuant to a bill-and-keep arrangement, as provided
         in § 51.713.

     (b) Establishment of incumbent LECs' rates for transport and termination:

           (1) This provision applies when, in the absence of a negotiated agreement between parties, state
               commissions establish Non-Access Reciprocal Compensation rates for the exchange of Non-Access
               Telecommunications Traffic between a local exchange carrier and a telecommunications carrier
               other than a CMRS provider where the incumbent local exchange carriers did not have any such
               rates as of December 29, 2011. Any rates established pursuant to this provision apply between
               December 29, 2011 and the date at which they are superseded by the transition specified in
               paragraphs (c)(2) through (c)(5) of this section.

           (2) An incumbent LEC's rates for transport and termination of telecommunications traffic shall be
               established, at the election of the state commission, on the basis of:

                 (i)   The forward-looking economic costs of such offerings, using a cost study pursuant to §§
                       51.505 and 51.511; or

                 (ii) A bill-and-keep arrangement, as provided in § 51.713.

           (3) In cases where both carriers in a Non-Access Reciprocal Compensation arrangement are incumbent
               LECs, state commissions shall establish the rates of the smaller carrier on the basis of the larger
               carrier's forward-looking costs, pursuant to § 51.711.

     (c) Except as provided by paragraph (a) of this section, and notwithstanding any other provision of the
         Commission's rules, default transitional Non-Access Reciprocal Compensation rates shall be determined
         as follows:

           (1) Effective December 29, 2011, no telecommunications carrier may increase a Non-Access Reciprocal
               Compensation for transport or termination above the level in effect on December 29, 2011. All Bill-
               and-Keep Arrangements in effect on December 29, 2011 shall remain in place unless both parties
               mutually agree to an alternative arrangement.

           (2) Beginning July 1, 2012, if any telecommunications carrier's Non-Access Reciprocal Compensation
               rates in effect on December 29, 2011 or established pursuant to paragraph (b) of this section
               subsequent to December 29, 2011, exceed that carrier's interstate access rates for functionally
               equivalent services in effect in the same state on December 29, 2011, that carrier shall reduce its
               reciprocal compensation rate by one half of the difference between the Non-Access Reciprocal
               Compensation rate and the corresponding functionally equivalent interstate access rate.

           (3) Beginning July 1, 2013, no telecommunications carrier's Non-Access Reciprocal Compensation rates
               shall exceed that carrier's tariffed interstate access rate in effect in the same state on January 1 of
               that same year, for equivalent functionality.

           (4) After July 1, 2018, all Price-Cap Local Exchange Carrier's Non-Access Reciprocal Compensation rates
               and all non-incumbent LECs that benchmark access rates to Price Cap Carrier shall be set pursuant
               to Bill-and-Keep arrangements for Non-Access Reciprocal Compensation as defined in this subpart.

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           (5) After July 1, 2020, all Rate-of-Return Local Exchange Carrier's Non-Access Reciprocal Compensation
               rates and all non-incumbent LECs that benchmark access rates to Rate-of-Return Carriers shall be
               set pursuant to Bill-and-Keep arrangements for Non-Access Reciprocal Compensation as defined in
               this subpart.

[76 FR 73855, Nov. 29, 2011]

§ 51.707 [Reserved]
§ 51.709 Rate structure for transport and termination.
     (a) In state proceedings, where a rate for Non-Access Reciprocal Compensation does not exist as of
         December 29, 2011, a state commission shall establish initial rates for the transport and termination of
         Non-Access Telecommunications Traffic that are structured consistently with the manner that carriers
         incur those costs, and consistently with the principles in this section.

     (b) The rate of a carrier providing transmission facilities dedicated to the transmission of non-access traffic
         between two carriers' networks shall recover only the costs of the proportion of that trunk capacity used
         by an interconnecting carrier to send non-access traffic that will terminate on the providing carrier's
         network. Such proportions may be measured during peak periods.

     (c) For Non-Access Telecommunications Traffic exchanged between a rate-of-return regulated rural telephone
         company as defined in § 51.5 and a CMRS provider, the rural rate-of-return incumbent local exchange
         carrier will be responsible for transport to the CMRS provider's interconnection point when it is located
         within the rural rate-of-return incumbent local exchange carrier's service area. When the CMRS provider's
         interconnection point is located outside the rural rate-of-return incumbent local exchange carrier's service
         area, the rural rate-of-return incumbent local exchange carrier's transport and provisioning obligation
         stops at its meet point and the CMRS provider is responsible for the remaining transport to its
         interconnection point. This paragraph (c) is a default provision and applicable in the absence of an
         existing agreement or arrangement otherwise.

[76 FR 73856, Nov. 29, 2011]

§ 51.711 Symmetrical reciprocal compensation.
     (a) Rates for transport and termination of Non-Access Telecommunications Traffic shall be symmetrical,
         unless carriers mutually agree otherwise, except as provided in paragraphs (b) and (c) of this section.

           (1) For purposes of this subpart, symmetrical rates are rates that a carrier other than an incumbent LEC
               assesses upon an incumbent LEC for transport and termination of Non-Access Telecommunications
               Traffic equal to those that the incumbent LEC assesses upon the other carrier for the same services.

           (2) In cases where both parties are incumbent LECs, or neither party is an incumbent LEC, a state
               commission shall establish the symmetrical rates for transport and termination based on the larger
               carrier's forward-looking costs.

           (3) Where the switch of a carrier other than an incumbent LEC serves a geographic area comparable to
               the area served by the incumbent LEC's tandem switch, the appropriate rate for the carrier other than
               an incumbent LEC is the incumbent LEC's tandem interconnection rate.

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                                                                                                     47 CFR 51.711(b)
Interconnection

     (b) Except as provided in § 51.705, a state commission may establish asymmetrical rates for transport and
         termination of Non-Access Telecommunications Traffic only if the carrier other than the incumbent LEC
         (or the smaller of two incumbent LECs) proves to the state commission on the basis of a cost study using
         the forward-looking economic cost based pricing methodology described in §§ 51.505 and 51.511, that
         the forward-looking costs for a network efficiently configured and operated by the carrier other than the
         incumbent LEC (or the smaller of two incumbent LECs), exceed the costs incurred by the incumbent LEC
         (or the larger incumbent LEC), and, consequently, that such that a higher rate is justified.

     (c) Pending further proceedings before the Commission, a state commission shall establish the rates that
         licensees in the Paging and Radiotelephone Service (defined in part 22, subpart E of this chapter),
         Narrowband Personal Communications Services (defined in part 24, subpart D of this chapter), and
         Paging Operations in the Private Land Mobile Radio Services (defined in part 90, subpart P of this chapter)
         may assess upon other carriers for the transport and termination of telecommunications traffic based on
         the forward-looking costs that such licensees incur in providing such services, pursuant to §§ 51.505 and
         51.511. Such licensees' rates shall not be set based on the default proxies described in § 51.707.

[61 FR 45619, Aug. 29, 1996 , as amended at 76 FR 73856, Nov. 29, 2011]

§ 51.713 Bill-and-keep arrangements.
Bill-and-keep arrangements are those in which carriers exchanging telecommunications traffic do not charge each
other for specific transport and/or termination functions or services.

[76 FR 73856, Nov. 29, 2011]

§ 51.715 Interim transport and termination pricing.
     (a) Upon request from a telecommunications carrier without an existing interconnection arrangement with an
         incumbent LEC, the incumbent LEC shall provide transport and termination of Non-Access
         Telecommunications Traffic immediately under an interim arrangement, pending resolution of negotiation
         or arbitration regarding transport and termination rates and approval of such rates by a state commission
         under sections 251 and 252 of the Act.

           (1) This requirement shall not apply when the requesting carrier has an existing interconnection
               arrangement that provides for the transport and termination of Non-Access Telecommunications
               Traffic by the incumbent LEC.

           (2) A telecommunications carrier may take advantage of such an interim arrangement only after it has
               requested negotiation with the incumbent LEC pursuant to § 51.301.

     (b) Upon receipt of a request as described in paragraph (a) of this section, an incumbent LEC must, without
         unreasonable delay, establish an interim arrangement for transport and termination of Non-Access
         Telecommunications Traffic at symmetrical rates.

           (1) In a state in which the state commission has established transport and termination rates based on
               forward-looking economic cost studies, an incumbent LEC shall use these state-determined rates as
               interim transport and termination rates.

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           (2) In a state in which the state commission has not established transport and termination rates based
               on forward-looking economic cost studies, an incumbent LEC shall set interim transport and
               termination rates either at the default ceilings specified in § 51.705(c) or in accordance with a bill-
               and-keep methodology as defined in § 51.713.

           (3) In a state in which the state commission has neither established transport and termination rates
               based on forward-looking economic cost studies nor established transport and termination rates
               consistent with the default price ranges described in § 51.707, an incumbent LEC shall set interim
               transport and termination rates at the default ceilings for end-office switching (0.4 cents per minute
               of use), tandem switching (0.15 cents per minute of use), and transport (as described in §
               51.707(b)(2)).

     (c) An interim arrangement shall cease to be in effect when one of the following occurs with respect to rates
         for transport and termination of telecommunications traffic subject to the interim arrangement:

           (1) A voluntary agreement has been negotiated and approved by a state commission;

           (2) An agreement has been arbitrated and approved by a state commission; or

           (3) The period for requesting arbitration has passed with no such request.

     (d) If the rates for transport and termination of Non-Access Telecommunications Traffic in an interim
         arrangement differ from the rates established by a state commission pursuant to § 51.705, the state
         commission shall require carriers to make adjustments to past compensation. Such adjustments to past
         compensation shall allow each carrier to receive the level of compensation it would have received had the
         rates in the interim arrangement equalled the rates later established by the state commission pursuant to
         § 51.705.

[61 FR 45619, Aug. 29, 1996, as amended at 76 FR 73856, Nov. 29, 2011]

§ 51.717 [Reserved]

Subpart I—Procedures for Implementation of Section 252 of the Act
§ 51.801 Commission action upon a state commission's failure to act to carry out its
responsibility under section 252 of the Act.
     (a) If a state commission fails to act to carry out its responsibility under section 252 of the Act in any
         proceeding or other matter under section 252 of the Act, the Commission shall issue an order preempting
         the state commission's jurisdiction of that proceeding or matter within 90 days after being notified (or
         taking notice) of such failure, and shall assume the responsibility of the state commission under section
         252 of the Act with respect to the proceeding or matter and shall act for the state commission.

     (b) For purposes of this part, a state commission fails to act if the state commission fails to respond, within a
         reasonable time, to a request for mediation, as provided for in section 252(a)(2) of the Act, or for a
         request for arbitration, as provided for in section 252(b) of the Act, or fails to complete an arbitration
         within the time limits established in section 252(b)(4)(C) of the Act.

     (c) A state shall not be deemed to have failed to act for purposes of section 252(e)(5) of the Act if an
         agreement is deemed approved under section 252(e)(4) of the Act.

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§ 51.803 Procedures for Commission notification of a state commission's failure to act.
     (a) Any party seeking preemption of a state commission's jurisdiction, based on the state commission's
         failure to act, shall notify the Commission in accordance with following procedures:

           (1) Such party shall file with the Secretary of the Commission a petition, supported by an affidavit, that
               states with specificity the basis for the petition and any information that supports the claim that the
               state has failed to act, including, but not limited to, the applicable provisions of the Act and the
               factual circumstances supporting a finding that the state commission has failed to act;

           (2) Such party shall ensure that the state commission and the other parties to the proceeding or matter
               for which preemption is sought are served with the petition required in paragraph (a)(1) of this
               section on the same date that the petitioning party serves the petition on the Commission; and

           (3) Within fifteen days from the date of service of the petition required in paragraph (a)(1) of this section,
               the applicable state commission and parties to the proceeding may file with the Commission a
               response to the petition.

     (b) The party seeking preemption must prove that the state has failed to act to carry out its responsibilities
         under section 252 of the Act.

     (c) The Commission, pursuant to section 252(e)(5) of the Act, may take notice upon its own motion that a
         state commission has failed to act. In such a case, the Commission shall issue a public notice that the
         Commission has taken notice of a state commission's failure to act. The applicable state commission
         and the parties to a proceeding or matter in which the Commission has taken notice of the state
         commission's failure to act may file, within fifteen days of the issuance of the public notice, comments on
         whether the Commission is required to assume the responsibility of the state commission under section
         252 of the Act with respect to the proceeding or matter.

     (d) The Commission shall issue an order determining whether it is required to preempt the state
         commission's jurisdiction of a proceeding or matter within 90 days after being notified under paragraph
         (a) of this section or taking notice under paragraph (c) of this section of a state commission's failure to
         carry out its responsibilities under section 252 of the Act.

§ 51.805 The Commission's authority over proceedings and matters.
     (a) If the Commission assumes responsibility for a proceeding or matter pursuant to section 252(e)(5) of the
         Act, the Commission shall retain jurisdiction over such proceeding or matter. At a minimum, the
         Commission shall approve or reject any interconnection agreement adopted by negotiation, mediation or
         arbitration for which the Commission, pursuant to section 252(e)(5) of the Act, has assumed the state's
         commission's responsibilities.

     (b) Agreements reached pursuant to mediation or arbitration by the Commission pursuant to section
         252(e)(5) of the Act are not required to be submitted to the state commission for approval or rejection.

§ 51.807 Arbitration and mediation of agreements by the Commission pursuant to section
252(e)(5) of the Act.
     (a) The rules established in this section shall apply only to instances in which the Commission assumes
         jurisdiction under section 252(e)(5) of the Act.

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     (b) When the Commission assumes responsibility for a proceeding or matter pursuant to section 252(e)(5) of
         the Act, it shall not be bound by state laws and standards that would have applied to the state
         commission in such proceeding or matter.

     (c) In resolving, by arbitration under section 252(b) of the Act, any open issues and in imposing conditions
         upon the parties to the agreement, the Commission shall:

           (1) Ensure that such resolution and conditions meet the requirements of section 251 of the Act,
               including the rules prescribed by the Commission pursuant to that section;

           (2) Establish any rates for interconnection, services, or network elements according to section 252(d) of
               the Act, including the rules prescribed by the Commission pursuant to that section; and

           (3) Provide a schedule for implementation of the terms and conditions by the parties to the agreement.

     (d) An arbitrator, acting pursuant to the Commission's authority under section 252(e)(5) of the Act, shall use
         final offer arbitration, except as otherwise provided in this section:

           (1) At the discretion of the arbitrator, final offer arbitration may take the form of either entire package
               final offer arbitration or issue-by-issue final offer arbitration.

           (2) Negotiations among the parties may continue, with or without the assistance of the arbitrator, after
               final arbitration offers are submitted. Parties may submit subsequent final offers following such
               negotiations.

           (3) To provide an opportunity for final post-offer negotiations, the arbitrator will not issue a decision for
               at least fifteen days after submission to the arbitrator of the final offers by the parties.

     (e) Final offers submitted by the parties to the arbitrator shall be consistent with section 251 of the Act,
         including the rules prescribed by the Commission pursuant to that section.

     (f) Each final offer shall:

           (1) Meet the requirements of section 251, including the rules prescribed by the Commission pursuant to
               that section;

           (2) Establish rates for interconnection, services, or access to unbundled network elements according to
               section 252(d) of the Act, including the rules prescribed by the Commission pursuant to that section;
               and

           (3) Provide a schedule for implementation of the terms and conditions by the parties to the agreement.
               If a final offer submitted by one or more parties fails to comply with the requirements of this section
               or if the arbitrator determines in unique circumstances that another result would better implement
               the Communications Act, the arbitrator has discretion to take steps designed to result in an
               arbitrated agreement that satisfies the requirements of section 252(c) of the Act, including requiring
               parties to submit new final offers within a time frame specified by the arbitrator, or adopting a result
               not submitted by any party that is consistent with the requirements of section 252(c) of the Act, and
               the rules prescribed by the Commission pursuant to that section.

     (g) Participation in the arbitration proceeding will be limited to the requesting telecommunications carrier and
         the incumbent LEC, except that the Commission will consider requests by third parties to file written
         pleadings.

     (h) Absent mutual consent of the parties to change any terms and conditions adopted by the arbitrator, the
         decision of the arbitrator shall be binding on the parties.

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[61 FR 45619, Aug. 29, 1996, as amended at 66 FR 8520, Feb. 1, 2001]

§ 51.809 Availability of agreements to other telecommunications carriers under section 252(i)
of the Act.
     (a) An incumbent LEC shall make available without unreasonable delay to any requesting
         telecommunications carrier any agreement in its entirety to which the incumbent LEC is a party that is
         approved by a state commission pursuant to section 252 of the Act, upon the same rates, terms, and
         conditions as those provided in the agreement. An incumbent LEC may not limit the availability of any
         agreement only to those requesting carriers serving a comparable class of subscribers or providing the
         same service (i.e., local, access, or interexchange) as the original party to the agreement.

     (b) The obligations of paragraph (a) of this section shall not apply where the incumbent LEC proves to the
         state commission that:

           (1) The costs of providing a particular agreement to the requesting telecommunications carrier are
               greater than the costs of providing it to the telecommunications carrier that originally negotiated the
               agreement, or

           (2) The provision of a particular agreement to the requesting carrier is not technically feasible.

     (c) Individual agreements shall remain available for use by telecommunications carriers pursuant to this
         section for a reasonable period of time after the approved agreement is available for public inspection
         under section 252(h) of the Act.

[69 FR 43771, July 22, 2004]

Subpart J—Transitional Access Service Pricing

Source: 76 FR 73856, Nov. 29, 2011, unless otherwise noted.

§ 51.901 Purpose and scope of transitional access service pricing rules.
     (a) The purpose of this section is to establish rules governing the transition of intercarrier compensation from
         a calling-party's-network pays system to a default bill-and-keep methodology. Following the transition, the
         exchange of traffic between and among service providers will, by default, be governed by bill-and-keep
         arrangements.

     (b) Effective December 29, 2011, the provisions of this subpart apply to reciprocal compensation for
         telecommunications traffic exchanged between telecommunications providers that is interstate or
         intrastate exchange access, information access, or exchange services for such access, other than special
         access.

           Note to § 51.901: See FCC 11–161, figure 9 (chart identifying steps in the transition).

§ 51.903 Definitions.
For the purposes of this subpart:

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     (a) Competitive Local Exchange Carrier. A Competitive Local Exchange Carrier is any local exchange carrier, as
         defined in § 51.5, that is not an incumbent local exchange carrier .

     (b) Composite Terminating End Office Access Rate means terminating End Office Access Service revenue,
         calculated using demand for a given time period, divided by end office switching minutes for the same
         time period.

     (c) Dedicated Transport Access Service means originating and terminating transport on circuits dedicated to
         the use of a single carrier or other customer provided by an incumbent local exchange carrier or any
         functional equivalent of the incumbent local exchange carrier access service provided by a non-
         incumbent local exchange carrier. Dedicated Transport Access Service rate elements for an incumbent
         local exchange carrier include the entrance facility rate elements specified in § 69.110 of this chapter, the
         dedicated transport rate elements specified in § 69.111 of this chapter, the direct-trunked transport rate
         elements specified in § 69.112 of this chapter, and the intrastate rate elements for functionally equivalent
         access services. Dedicated Transport Access Service rate elements for a non-incumbent local exchange
         carrier include any functionally equivalent access services.

     (d) End Office Access Service means:

           (1) The switching of access traffic at the carrier's end office switch and the delivery to or from of such
               traffic to the called party's premises;

           (2) The routing of interexchange telecommunications traffic to or from the called party's premises, either
               directly or via contractual or other arrangements with an affiliated or unaffiliated entity, regardless of
               the specific functions provided or facilities used; or

           (3) Any functional equivalent of the incumbent local exchange carrier access service provided by a non-
               incumbent local exchange carrier. End Office Access Service rate elements for an incumbent local
               exchange carrier include the local switching rate elements specified in § 69.106 of this chapter, the
               carrier common line rate elements specified in § 69.154 of this chapter, and the intrastate rate
               elements for functionally equivalent access services. End Office Access Service rate elements for an
               incumbent local exchange carrier also include any rate elements assessed on local switching access
               minutes, including the information surcharge and residual rate elements. End office Access Service
               rate elements for a non-incumbent local exchange carrier include any functionally equivalent access
               service.

                 Note to paragraph (d): For incumbent local exchange carriers, residual rate elements may
                 include, for example, state Transport Interconnection Charges, Residual Interconnection
                 Charges, and PICCs. For non-incumbent local exchange carriers, residual rate elements may
                 include any functionally equivalent access service.

     (e) Fiscal Year 2011 means October 1, 2010 through September 30, 2011.

     (f) Price Cap Carrier has the same meaning as that term is defined in § 61.3(aa) of this chapter.

     (g) Rate-of-Return Carrier is any incumbent local exchange carrier not subject to price cap regulation as that
         term is defined in § 61.3(bb) of this chapter, but only with respect to the territory in which it operates as
         an incumbent local exchange carrier.

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     (h) Access Reciprocal Compensation means telecommunications traffic exchanged between
         telecommunications service providers that is interstate or intrastate exchange access, information
         access, or exchange services for such access, other than special access.

      (i)   Tandem-Switched Transport Access Service means:

            (1) Tandem switching and common transport between the tandem switch and end office; or

            (2) Any functional equivalent of the incumbent local exchange carrier access service provided by a non-
                incumbent local exchange carrier via other facilities. Tandem-Switched Transport rate elements for
                an incumbent local exchange carrier include the rate elements specified in § 69.111 of this chapter,
                except for the dedicated transport rate elements specified in that section, and intrastate rate
                elements for functionally equivalent service. Tandem Switched Transport Access Service rate
                elements for a non-incumbent local exchange carrier include any functionally equivalent access
                service.

      (j)   Transitional Intrastate Access Service means terminating End Office Access Service that was subject to
            intrastate access rates as of December 31, 2011; terminating Tandem-Switched Transport Access Service
            that was subject to intrastate access rates as of December 31, 2011; and originating and terminating
            Dedicated Transport Access Service that was subject to intrastate access rates as of December 31, 2011.

     (k) Access Stimulation has the same meaning as that term is defined in § 61.3(bbb) of this chapter.

      (l)   Intermediate Access Provider has the same meaning as that term is defined in § 61.3(ccc) of this chapter.

     (m) Interexchange Carrier has the same meaning as that term is defined in § 61.3(ddd) of this chapter.

     (n) Toll Free Database Query Charge is a per query charge that is expressed in dollars and cents to access the
         Toll Free Service Management System Database, as defined in § 52.101(d) of this subchapter.

     (o) Toll Free Call means a call to a Toll Free Number, as defined in § 52.101(f) of this subchapter.

     (p) Joint Tandem Switched Transport Access Service is the rate element assessible for the transmission of
         toll free originating access service. The rate element includes both the transport between the end office
         and the tandem switch and the tandem switching. It does not include transport of traffic over dedicated
         transport facilities between the serving wire center and the tandem switching office.

[76 FR 73856, Nov. 29, 2011, as amended at 83 FR 67121, Dec. 28, 2018; 84 FR 57650, Oct. 28, 2019; 85 FR 75916, Nov. 27, 2020]

§ 51.905 Implementation.
     (a) The rates set forth in this section are default rates. Notwithstanding any other provision of the
         Commission's rules, telecommunications carriers may agree to rates different from the default rates.

     (b) LECs who are otherwise required to file tariffs are required to tariff rates no higher than the default
         transitional rates specified by this subpart.

            (1) With respect to interstate switched access services governed by this subpart, LECs shall tariff rates
                for those services in their federal tariffs. Except as expressly superseded below, LECs shall follow
                the procedures specified in part 61 of this chapter when filing such tariffs.

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           (2) With respect to Transitional Intrastate Access Services, originating access charges for Toll Free
               Calls, and Toll Free Database Query Charges governed by this subpart, LECs shall follow the
               procedures specified by relevant state law when filing intrastate tariffs, price lists or other
               instruments (referred to collectively as “tariffs”).

     (c) Nothing in this section shall be construed to require a carrier to file or maintain a tariff or to amend an
         existing tariff if it is not otherwise required to do so under applicable law.

     (d) Beginning July 1, 2021, and notwithstanding any other provision of the Commission's rules in this chapter,
         only the originating carrier in the path of the Toll Free Call may assess a Toll Free Database Query Charge
         for a Toll Free Call. When the originating carrier is unable to transmit the results of the Toll Free Database
         Query to the next carrier or provider in the call path, that next carrier or provider may instead assess a Toll
         Free Database Query Charge.

[76 FR 73856, Nov. 29, 2011, as amended at 85 FR 75916, Nov. 27, 2020]

§ 51.907 Transition of price cap carrier access charges.
     (a) Notwithstanding any other provision of the Commission's rules, on December 29, 2011, a Price Cap Carrier
         shall cap the rates for all interstate and intrastate rate elements for services contained in the definitions
         of Interstate End Office Access Services, Tandem Switched Transport Access Services, and Dedicated
         Transport Access Services. In addition, a Price Cap Carrier shall also cap the rates for any interstate and
         intrastate rate elements in the traffic sensitive basket” and the “trunking basket” as described in 47 CFR
         61.42(d)(2) and (3) to the extent that such rate elements are not contained in the definitions of Interstate
         End Office Access Services, Tandem Switched Transport Access Services, and Dedicated Transport
         Access Services. Carriers will remove these services from price cap regulation in their July 1, 2012 annual
         tariff filing.

     (b) Step 1. Beginning July 1, 2012, notwithstanding any other provision of the Commission's rules:

           (1) Each Price Cap Carrier shall file tariffs, in accordance with § 51.905(b)(2), with the appropriate state
               regulatory authority, that set forth the rates applicable to Transitional Intrastate Access Service in
               each state in which it provides Transitional Intrastate Access Service.

           (2) Each Price Cap Carrier shall establish the rates for Transitional Intrastate Access Service using the
               following methodology:

                 (i)   Calculate total revenue from Transitional Intrastate Access Service at the carrier's interstate
                       access rates in effect on December 29, 2011, using Fiscal Year 2011 intrastate switched
                       access demand for each rate element.

                 (ii) Calculate total revenue from Transitional Intrastate Access Service at the carrier's intrastate
                      access rates in effect on December 29, 2011, using Fiscal Year 2011 intrastate switched
                      access demand for each rate element.

                (iii) Calculate the Step 1 Access Revenue Reduction. The Step 1 Access Revenue Reduction is equal
                      to one-half of the difference between the amount calculated in paragraph (b)(2)(i) of this
                      section and the amount calculated in paragraph (b)(2)(ii) of this section.

                (iv) A Price Cap Carrier may elect to establish rates for Transitional Intrastate Access Service using
                     its intrastate access rate structure. Carriers using this option shall establish rates for
                     Transitional Intrastate Access Service such that Transitional Intrastate Access Service revenue

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                       at the proposed rates is no greater than Transitional Intrastate Access Service revenue at the
                       intrastate rates in effect as of December 29, 2011 less the Step 1 Access Revenue Reduction,
                       using Fiscal Year 2011 demand. Carriers electing to establish rates for Transitional Intrastate
                       Access Service in this manner shall notify the appropriate state regulatory authority of their
                       election in the filing required by § 51.907(b)(1).

                 (v) A Price Cap Carrier may elect to apply its interstate access rate structure and interstate rates to
                     Transitional Intrastate Access Service. In addition to applicable interstate access rates, the
                     carrier may, between July 1, 2012 and July 1, 2013, assess a transitional per-minute charge on
                     Transitional Intrastate Access Service end office switching minutes (previously billed as
                     intrastate access). The transitional per-minute charge shall be no greater than the Step 1
                     Access Revenue Reduction divided by Fiscal Year 2011 Transitional Intrastate Access Service
                     end office switching minutes. Carriers electing to establish rates for Transitional Intrastate
                     Access Service in this manner shall notify the appropriate state regulatory authority of their
                     election in the filing required by paragraph (b)(1) of this section.

                (vi) Except as provided in paragraph (b)(3) of this section, nothing in this section obligates or allows
                     a Price Cap Carrier that has intrastate rates lower than its functionally equivalent interstate
                     rates to make any intrastate tariff filing or intrastate tariff revisions to increase such rates.

           (3) If a Price Cap Carrier must make an intrastate switched access rate reduction pursuant to paragraph
               (b)(2) of this section, and that Price Cap Carrier has an intrastate rate for a rate element that is below
               the comparable interstate rate for that element, the Price Cap Carrier shall:

                 (i)   Increase the rate for any intrastate rate element that is below the comparable interstate rate for
                       that element to the interstate rate no later than July 1, 2013;

                 (ii) Include any increases made pursuant to paragraph (b)(3)(i) of this section in the calculation of
                      its eligible recovery for 2012.

     (c) Step 2. Beginning July 1, 2013, notwithstanding any other provision of the Commission's rules:

           (1) Transitional Intrastate Access Service rates shall be no higher than the Price Cap Carrier's interstate
               access rates. Once the Price Cap Carrier's Transitional Intrastate Access Service rates are equal to
               its functionally equivalent interstate access rates, they shall be subject to the same rate structure
               and all subsequent rate and rate structure modifications. Except as provided in paragraph (c)(4) of
               this section, nothing in this section obligates or allows a Price Cap Carrier that has intrastate rates
               lower than its functionally equivalent interstate rates to make any intrastate tariff filing or intrastate
               tariff revisions to increase such rates.

           (2) In cases where a Price Cap Carrier does not have intrastate rates that permit it to determine
               composite intrastate End Office Access Service rates, the carrier shall establish End Office Access
               Service rates such that the ratio between its composite intrastate End Office Access Service
               revenues and its total intrastate switched access revenues may not exceed the ratio between its
               composite interstate End Office Access Service revenues and its total interstate switched access
               revenues.

           (3) [Reserved]

           (4) If a Price Cap Carrier made an intrastate switched access rate reduction in 2012 pursuant to
               paragraph (b)(2) of this section, and that Price Cap Carrier has an intrastate rate for a rate element
               that is below the comparable interstate rate for that element, the Price Cap Carrier shall:

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                 (i)   Increase the rate for any intrastate rate element that is below the comparable interstate rate for
                       that element to the interstate rate on July 1, 2013; and

                 (ii) Include any increases made pursuant to paragraph (b)(4)(i) of this section in the calculation of
                      its eligible recovery for 2013.

     (d) Step 3. Beginning July 1, 2014, notwithstanding any other provision of the Commission's rules:

           (1) A Price Cap Carrier shall establish separate originating and terminating rate elements for all per-
               minute components within interstate and intrastate End Office Access Service. For fixed charges, the
               Price Cap Carrier shall divide the rate between originating and terminating rate elements based on
               relative originating and terminating end office switching minutes. If sufficient originating and
               terminating end office switching minute data is not available, the carrier shall divide such charges
               equally between originating and terminating elements.

           (2) Each Price Cap Carrier shall establish rates for interstate or intrastate terminating End Office Access
               Service using the following methodology:

                 (i)   Each Price Cap Carrier shall calculate the 2011 Baseline Composite Terminating End Office
                       Access Rate. The 2011 Baseline Composite Terminating End Office Access Rate means the
                       Composite Terminating End Office Access Rate calculated using Fiscal Year 2011 interstate
                       demand multiplied by the interstate End Office Access Service rates at the levels in effect on
                       December 29, 2011, and then dividing the result by 2011 Fiscal Year interstate local switching
                       demand.

                 (ii) Each Price Cap Carrier shall calculate its 2014 Target Composite Terminating End Office Access
                      Rate. The 2014 Target Composite Terminating End Office Access Rate means $0.0007 per
                      minute plus two-thirds of any difference between the 2011 Baseline Composite Terminating
                      End Office Access Rate and $0.0007 per minute.

                (iii) Beginning July 1, 2014, no Price Cap Carrier's interstate Composite Terminating End Office
                      Access Rate shall exceed its 2014 Target Composite Terminating End Office Access Rate. A
                      price cap carrier shall determine compliance by calculating interstate Composite Terminating
                      End Office Access Rates using the relevant Fiscal Year 2011 interstate demand multiplied by
                      the respective interstate rates as of July 1, 2014, and then dividing the result by the relevant
                      2011 Fiscal Year interstate terminating local switching demand. A price cap carrier's intrastate
                      terminating end office access rates may not exceed the comparable interstate terminating end
                      office access rates. In the alternative, any Price Cap Carrier may elect to implement a single per
                      minute rate element for both interstate and intrastate terminating End Office Access Service no
                      greater than the 2014 Target Composite Terminating End Office Access Rate if its intrastate
                      terminating end office access rates would be at rate parity with its interstate terminating end
                      office access rates.

     (e) Step 4. Beginning July 1, 2015, notwithstanding any other provision of the Commission's rules:

           (1) Each Price Cap Carrier shall establish interstate or intrastate rates for terminating End Office Access
               Service using the following methodology:

                 (i)   Each Price Cap Carrier shall calculate its 2015 Target Composite Terminating End Office Access
                       Rate. The 2015 Target Composite Terminating End Office Access Rate means $0.0007 per
                       minute plus one-third of any difference between the 2011 Composite Terminating End Office
                       Access Rate and $0.0007 per minute.

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                 (ii) Beginning July 1, 2015, no Price Cap Carrier's interstate Composite Terminating End Office
                      Access Rate shall exceed its 2015 Target Composite Terminating End Office Access Rate. A
                      price cap carrier shall determine compliance by calculating interstate Composite Terminating
                      End Office Access Rates using the relevant Fiscal Year 2011 interstate demand multiplied by
                      the respective interstate rates as of July 1, 2015, and then dividing the result by the relevant
                      2011 Fiscal Year interstate terminating local switching demand. A price cap carrier's intrastate
                      terminating end office access rates may not exceed the comparable interstate terminating end
                      office access rates. In the alternative, any Price Cap Carrier may elect to implement a single per
                      minute rate element for both interstate and intrastate terminating End Office Access Service no
                      greater than the 2015 Target Composite Terminating End Office Access Rate if its intrastate
                      terminating end office access rates would be at rate parity with its interstate terminating end
                      office access rates.

           (2) Nothing in this section obligates or allows a Price Cap Carrier that has intrastate rates lower than its
               functionally equivalent interstate rates to make any intrastate tariff filing or intrastate tariff revisions
               raising such rates.

     (f) Step 5. Beginning July 1, 2016, notwithstanding any other provision of the Commission's rules, each Price
         Cap Carrier shall establish interstate terminating End Office Access Service rates such that its Composite
         Terminating End Office Access Service rate does not exceed $0.0007 per minute. A price cap carrier shall
         determine compliance by calculating interstate Composite Terminating End Office Access Rates using the
         relevant Fiscal Year 2011 interstate demand multiplied by the respective interstate rates as of July 1,
         2016, and then dividing the result by the relevant 2011 Fiscal Year interstate terminating local switching
         demand. A price cap carrier's intrastate terminating end office access rates may not exceed the
         comparable interstate terminating end office access rates. In the alternative, any Price Cap Carrier may
         elect to implement a single per-minute rate element for both interstate and intrastate Terminating End
         Office Access Service no greater than the 2016 Target Composite Terminating End Office Access Rate if
         its intrastate terminating end office access rates would be at rate parity with its interstate terminating end
         office access rates. Nothing in this section obligates or allows a Price Cap Carrier that has intrastate rates
         lower than its functionally equivalent interstate rates to make any intrastate tariff filing or intrastate tariff
         revisions raising such rates.

     (g) Step 6. Beginning July 1, 2017, notwithstanding any other provision of the Commission's rules:

           (1) Each Price Cap Carrier shall, in accordance with a bill-and-keep methodology, refile its interstate
               access tariffs and any state tariffs, in accordance with § 51.905(b)(2), removing any intercarrier
               charges for terminating End Office Access Service.

           (2) Each Price Cap Carrier shall establish, for interstate and intrastate terminating traffic traversing a
               tandem switch that the terminating carrier or its affiliates owns, Tandem-Switched Transport Access
               Service rates no greater than $0.0007 per minute.

           (3) Nothing in this section obligates or allows a Price Cap Carrier that has intrastate rates lower than its
               functionally equivalent interstate rates to make any intrastate tariff filing or intrastate tariff revisions
               raising such rates.

     (h) Step 7. Beginning July 1, 2018, notwithstanding any other provision of the Commission's rules, each Price
         Cap carrier shall, in accordance with bill-and-keep, as defined in § 51.713, revise and refile its interstate
         switched access tariffs and any state tariffs to remove any intercarrier charges applicable to terminating
         tandem-switched access service traversing a tandem switch that the terminating carrier or its affiliate
         owns.

47 CFR 51.907(h) (enhanced display)                                                                           page 69 of 102
47 CFR Part 51 (up to date as of 2/20/2024)
                                                                                                              47 CFR 51.907(i)
Interconnection

      (i)   8YY Transition—Step 1. Beginning July 1, 2021, and notwithstanding any other provision of the
            Commission's rules in this chapter, each Price Cap Carrier shall:

            (1) Establish separate rate elements for interstate and intrastate toll free originating end office access
                service and non-toll free originating end office access service. Rate elements reflecting fixed charges
                associated with originating End Office Access Service shall be treated as non-toll free charges.

            (2) Reduce its intrastate toll free originating end office access service rates to its interstate toll free
                originating end office access service rates as follows:

                 (i)   Calculate total revenue from End Office Access Service, excluding non-usage-based rate
                       elements, at the carrier's interstate access rates in effect on June 30, 2020, using intrastate
                       switched access demand for each rate element for the 12 months ending June 30, 2020.

                 (ii) Calculate total revenue from End Office Access Service, excluding non-usage based rate
                      elements, at the carrier's intrastate access rates in effect on June 30, 2020, using intrastate
                      switched access demand for each rate element for the 12 months ending June 30, 2020.

                 (iii) If the value in paragraph (i)(2)(ii) of this section is less than or equal to the value in paragraph
                       (i)(2)(i) of this section, the Price Cap Carrier's intrastate End Office Access Service rates shall
                       remain unchanged.

                 (iv) If the value in paragraph (i)(2)(ii) of this section is greater than the value in paragraph (i)(2)(i) of
                      this section, the Price Cap Carrier shall reduce intrastate rates for End Office Access Service so
                      that they are equal to the Price Cap Carrier's functionally equivalent interstate rates for End
                      Office Access Rates and shall be subject to the interstate rate structure and all subsequent rate
                      and rate structure modifications.

                 (v) Except as provided in paragraph (i)(2) of this section, nothing in this section allows a Price Cap
                     Carrier that has intrastate rates lower than its functionally equivalent interstate rates to make
                     any intrastate tariff filing or intrastate tariff revisions to increase such rates. If a Price Cap
                     Carrier has an intrastate rate for an End Office Access Service rate element that is below the
                     comparable interstate rate for that element, the Price Cap Carrier may, if necessary as part of a
                     restructuring to reduce its intrastate rates for End Office Access Service down to parity with
                     functionally equivalent interstate rates, increase the rate for an intrastate rate element that is
                     below the comparable interstate rate for that element to the interstate rate in effect on July 1,
                     2021.

            (3) Establish separate rate elements for interstate and intrastate non-toll free originating transport
                services for service between an end office switch and the tandem switch and remove its rate for
                intrastate and interstate originating toll free transport services consistent with a bill-and-keep
                methodology (as defined in § 51.713).

            (4) Establish separate rate elements respectively for interstate and intrastate non-toll free originating
                tandem switching services.

            (5) Establish transitional interstate and intrastate Joint Tandem Switched Transport Access Service rate
                elements for Toll Free Calls that are respectively no more than $0.001 per minute.

            (6) Reduce its interstate and intrastate rates for Toll Free Database Query Charges to no more than
                $0.004248 per query. Nothing in this section obligates or allows a Price Cap Carrier that has Toll
                Free Database Query Charges lower than this rate to make any intrastate or interstate tariff filing
                revision to increase such rates.

47 CFR 51.907(i)(6) (enhanced display)                                                                          page 70 of 102
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                                                                                                             47 CFR 51.907(j)
Interconnection

      (j)   8YY Transition—Step 2. Beginning July 1, 2022, and notwithstanding any other provision of the
            Commission's rules in this chapter, each Price Cap Carrier shall:

            (1) Reduce its interstate and intrastate rates for all originating End Office Access Service rate elements
                for Toll Free Calls in each state in which it provides such service by one-half of the maximum rate
                allowed by paragraph (a) of this section; and

            (2) Reduce its rates for intrastate and interstate Toll Free Database Query Charges by one-half of the
                difference between the rate permitted by paragraph (i)(6) of this section and the transitional rate of
                $0.0002 per query set forth in paragraph (k)(2) of this section.

     (k) 8YY Transition—Step 3. Beginning July 1, 2023, and notwithstanding any other provision of the
         Commission's rules in this chapter, each Price Cap Carrier shall:

            (1) In accordance with a bill-and-keep methodology, refile its interstate switched access tariff and any
                state tariff to remove any intercarrier charges for intrastate and interstate originating End Office
                Access Service for Toll Free Calls; and

            (2) Reduce its rates for all intrastate and interstate Toll Free Database Query Charges to a transitional
                rate of no more than $0.0002 per query.

[76 FR 73856, Nov. 29, 2011, as amended at 77 FR 48452, Aug. 14, 2012; 79 FR 28844, May 20, 2014; 85 FR 75916, Nov. 27, 2020]

§ 51.909 Transition of rate-of-return carrier access charges.
     (a) Notwithstanding any other provision of the Commission's rules, on December 29, 2011, a Rate-of-Return
         Carrier shall:

            (1) Cap the rates for all rate elements for services contained in the definitions of End Office Access
                Service, Tandem Switched Transport Access Service, and Dedicated Transport Access Service, as
                well as all other interstate switched access rate elements, in its interstate switched access tariffs at
                the rate that was in effect on the December 29, 2011; and

            (2) Cap, in accordance with § 51.505(b)(2), the rates for rate all elements in its intrastate switched
                access tariffs associated with the provision of terminating End Office Access Service and
                terminating Tandem-Switched Transport Access Service at the rates that were in effect on the
                December 29, 2011,

                 (i)   Using the terminating rates if specifically identified; or

                 (ii) Using the rate for the applicable rate element if the tariff does not distinguish between
                      originating and terminating.

            (3) Except as provided in paragraphs (a)(6) and (b)(4) of this section, nothing in this section obligates or
                allows a Rate-of-Return Carrier that has intrastate rates lower than its functionally equivalent
                interstate rates to make any intrastate tariff filing or intrastate tariff revisions raising such rates.

            (4) Notwithstanding the requirements of paragraph (a)(1) of this section, if a Rate-of-Return Carrier
                enters or exits the National Exchange Carrier Association (Association), as defined in § 69.2(d) of
                this chapter, traffic-sensitive tariff pursuant to the provisions of § 69.3(e)(6) of this chapter, the
                Association shall adjust its switched access rate caps referenced in paragraph (a)(1) of this section.

                 (i)   For each entering Rate-of-Return Carrier, the Association shall:

47 CFR 51.909(a)(4)(i) (enhanced display)                                                                      page 71 of 102
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                                                                                                  47 CFR 51.909(a)(4)(i)(A)
Interconnection

                      (A) Determine each entering Rate-of-Return Carrier's interstate switched access revenues for
                          the preceding calendar year;

                      (B) Determine the revenues that would have been realized by the entering Rate-of-Return
                          Carrier in the preceding calendar year if it had used the Association's switched access
                          rates (employing the rates for the appropriate bands) as of December 31 of the preceding
                          year and the entering Rate-of-Return Carrier's switched access demand used to determine
                          switched access revenues under paragraph (a)(4)(i)(A) of this section; and

                      (C) Subtract the sum of the revenues determined pursuant to paragraph (a)(4)(i)(B) of this
                          section from the sum of the revenues determined pursuant to paragraph (a)(4)(i)(A) of this
                          section.

                 (ii) The Association shall determine the amount by which each exiting Rate-of-Return Carrier is a
                      net contributor or net recipient to or from the switched access segment of the Association pool
                      as follows:

                      (A) The Association shall calculate the difference between each exiting Rate-of-Return
                          Carrier's 2011–2012 tariff year projected interstate switched access revenues excluding
                          Local Switching Support and the Rate-of-Return Carrier's projected switched access pool
                          settlements excluding Local Switching Support for the same period with a net contribution
                          amount being treated as a positive amount and a net recipient amount being treated as a
                          negative amount. The Association shall divide the calculated difference by the Rate-of-
                          Return Carrier's 2011–2012 tariff year projected interstate switched access revenues
                          excluding Local Switching Support to produce a percent net contribution or net receipt
                          factor.

                      (B) The Association shall multiply the factor calculated in paragraph (a)(4)(ii)(A) of this
                          section by the Rate-of-Return Carrier's switched access revenues for the preceding
                          calendar year to yield the amount of the Rate-of-Return Carrier's net contribution or net
                          receipts for the calendar year.

                (iii) To determine the Association's adjusted switched access rate caps, the Association shall:

                      (A) Add the amounts calculated under paragraphs (a)(4)(i) and (a)(4)(ii) of this section;

                      (B) Divide the amount determined in paragraph (a)(4)(iii)(A) of this section by the preceding
                          year's switched access revenues of the Rate-of-Return Carriers that will participate in the
                          Association traffic-sensitive tariff for the next annual tariff period;

                      (C) The Association shall proportionately adjust its June 30 switched access rate caps by the
                          percentage amount determined in paragraph (a)(4)(iii)(B) of this section.

                (iv) The interstate switched access rate caps determined pursuant to paragraph (a)(4)(iii)(C) of this
                     section shall be the new capped interstate switched access rates for purposes of § 51.909(a).
                     The Association shall provide support in its annual access tariff filing to justify the revised
                     interstate switched access rate caps, the Access Recovery Charges that will be assessed, and
                     the amount of Connect America Fund ICC support each carrier will be eligible to receive.

           (5) A Rate-of-Return Carrier exiting the Association traffic-sensitive tariff pursuant to § 69.3(e)(6) of this
               chapter must establish new switched access rate caps as follows:

47 CFR 51.909(a)(5) (enhanced display)                                                                      page 72 of 102
47 CFR Part 51 (up to date as of 2/20/2024)
                                                                                                       47 CFR 51.909(a)(5)(i)
Interconnection

                 (i)   The Rate-of-Return Carrier shall multiply the factor determined in paragraph (a)(4)(ii)(A) of this
                       section by negative one and then proportionately adjust the Association's capped switched
                       access rates as of the date preceding the effective date of the exiting Rate-of-Return Carrier's
                       next annual tariff filing by this percentage. A Rate-of-Return Carrier that was a net contributor to
                       the pool will have rate caps that are lower than the Association's switched access rate caps,
                       while a net recipient will have switched access rate caps that are higher than the Association's
                       switched access rate caps;

                 (ii) The interstate switched access rate caps determined pursuant to paragraph (a)(5)(i) of this
                      section shall be the new capped interstate switched access rates of the exiting Rate-of-Return
                      Carrier for purposes of § 51.909(a). An exiting Rate-of-Return Carrier shall provide support in its
                      annual access tariff filing to justify the revised interstate switched access rate caps, the Access
                      Recovery Charges that will be assessed, and the amount of Connect America Fund ICC support
                      the carrier will be eligible to receive.

           (6) If the Association revises its interstate switched access rate caps pursuant to paragraph (a)(4) of
               this section, each Rate-of-Return Carrier participating in the upcoming annual Association traffic-
               sensitive tariff shall:

                 (i)   Revise any of its intrastate switched access rates that would have reached parity with its
                       interstate switched access rates in 2013 to parity with the revised interstate switched access
                       rate levels;

                 (ii) The Association shall provide Rate-of-Return Carriers that are participating in the Association
                      traffic-sensitive pool with notice of any revisions the Association proposes under paragraph
                      (a)(4) of this section no later than May 1.

     (b) Step 1. Beginning July 1, 2012, notwithstanding any other provision of the Commission's rules:

           (1) Each Rate-of-Return Carrier shall file intrastate access tariff provisions, in accordance with §
               51.505(b)(2), that set forth the rates applicable to Transitional Intrastate Access Service in each
               state in which it provides Transitional Intrastate Access Service.

           (2) Each Rate-of-Return Carrier shall establish the rates for Transitional Intrastate Access Service using
               the following methodology:

                 (i)   Calculate total revenue from Transitional Intrastate Access Service at the carrier's interstate
                       access rates in effect on December 29, 2011, using Fiscal Year 2011 intrastate switched
                       access demand for each rate element.

                 (ii) Calculate total revenue from Transitional Intrastate Access Service at the carrier's intrastate
                      access rates in effect on December 29, 2011, using Fiscal Year 2011 intrastate switched
                      access demand for each rate element.

                (iii) Calculate the Step 1 Access Revenue Reduction. The Step 1 Access Revenue Reduction is equal
                      to one-half of the difference between the amount calculated in (b)(2)(i) of this section and the
                      amount calculated in (b)(2)(ii) of this section.

                (iv) A Rate-of-Return Carrier may elect to establish rates for Transitional Intrastate Access Service
                     using its intrastate access rate structure. Carriers using this option shall establish rates for
                     Transitional Intrastate Access Service such that Transitional Intrastate Access Service revenue
                     at the proposed rates is no greater than Transitional Intrastate Access Service revenue at the
                     intrastate rates in effect as of December 29, 2011 less the Step 1 Access Revenue Reduction,

47 CFR 51.909(b)(2)(iv) (enhanced display)                                                                    page 73 of 102
47 CFR Part 51 (up to date as of 2/20/2024)
                                                                                                     47 CFR 51.909(b)(2)(v)
Interconnection

                       using Fiscal Year 2011 intrastate switched access demand. Carriers electing to establish rates
                       for Transitional Intrastate Access Service in this manner shall notify the appropriate state
                       regulatory authority of their election in the filing required by § 51.907(b)(1).

                 (v) A Rate-of-Return Carrier may elect to apply its interstate access rate structure and interstate
                     rates to Transitional Intrastate Access Service. In addition to applicable interstate access rates,
                     the carrier may, between July 1, 2012 and July 1, 2013, assess a transitional per-minute charge
                     on Transitional Intrastate Access Service end office switching minutes (previously billed as
                     intrastate access). The transitional per-minute charge shall be no greater than the Step 1
                     Access Revenue Reduction divided by Fiscal Year 2011 Transitional Intrastate Access Service
                     end office switching minutes. Carriers electing to establish rates for Transitional Intrastate
                     Access Service in this manner shall notify the appropriate state regulatory authority of their
                     election in the filing required by § 51.907(b)(1).

           (3) Except as provided in paragraph (b)(4) of this section, nothing in this section obligates or allows a
               Rate-of-Return carrier that has intrastate rates lower than its functionally equivalent interstate rates
               to make any intrastate tariff filing or intrastate tariff revisions raising such rates.

           (4) If a Rate-of-Return Carrier must make an intrastate switched access rate reduction pursuant to
               paragraph (b)(2) of this section, and that Rate-of-Return Carrier has an intrastate rate for a rate
               element that is below the comparable interstate rate for that element, the Rate-of-Return Carrier
               shall:

                 (i)   Increase the rate for any intrastate rate element that is below the comparable interstate rate for
                       that element to the interstate rate no later than July 1, 2013;

                 (ii) Include any increases made pursuant to paragraph (b)(4)(i) of this section in the calculation of
                      its eligible recovery for 2012.

     (c) Step 2. Beginning July 1, 2013, notwithstanding any other provision of the Commission's rules:

           (1) Transitional Intrastate Access Service rates shall be no higher than the Rate-of-Return Carrier's
               interstate Terminating End Office Access Service, Terminating Tandem-Switched Transport Access
               Service, and Originating and Terminating Dedicated Transport Access Service rates and subject to
               the same rate structure and all subsequent rate and rate structure modifications. Except as provided
               in paragraph (c)(2) of this section, nothing in this section obligates or allows a Rate-of-Return Carrier
               that has intrastate rates lower than its functionally equivalent interstate rates to make any intrastate
               tariff filing or intrastate tariff revisions to increase such rates.

           (2) If a Rate-of-Return Carrier made an intrastate switched access rate reduction in 2012 pursuant to
               paragraph (b)(2) of this section, and that Rate-of-Return Carrier has an intrastate rate for a rate
               element that is below the comparable interstate rate for that element, the Rate-of-Return Carrier
               shall:

                 (i)   Increase any intrastate rate element that is below the comparable interstate rate to the
                       interstate rate by July 1, 2013; and

                 (ii) Include any increases made pursuant to paragraph (c)(2)(i) of this section in the calculation of
                      its eligible recovery for 2013.

     (d) Step 3. Beginning July 1, 2014, notwithstanding any other provision of the Commission's rules:

47 CFR 51.909(d) (enhanced display)                                                                         page 74 of 102
47 CFR Part 51 (up to date as of 2/20/2024)
                                                                                                          47 CFR 51.909(d)(1)
Interconnection

           (1) Notwithstanding the rate structure rules set forth in § 69.106 of this chapter or anything else in the
               Commission's rules, a Rate-of-Return Carrier shall establish separate originating and terminating
               interstate and intrastate rate elements for all components within interstate End Office Access
               Service. For fixed charges, the Rate-of-Return Carrier shall divide the amount based on relative
               originating and terminating end office switching minutes. If sufficient originating and terminating end
               office switching minute data is not available, the carrier shall divide such charges equally between
               originating and terminating elements.

           (2) Nothing in this Step shall affect Tandem-Switched Transport Access Service or Dedicated Transport
               Access Service.

           (3) Each Rate-of-Return Carrier shall establish rates for interstate and intrastate terminating End Office
               Access Service using the following methodology:

                 (i)   Each Rate-of-Return Carrier shall calculate the 2011 Baseline Composite Terminating End Office
                       Access Rate. The 2011 Baseline Composite Terminating End Office Access Rate means the
                       Composite Terminating End Office Access Rate calculated using Fiscal Year 2011 interstate
                       demand and the interstate End Office Access Service rates at the levels in effect on December
                       29, 2011.

                 (ii) Each Rate-of-Return Carrier shall calculate its 2014 Target Composite Terminating End Office
                      Access Rate. The 2014 Target Composite Terminating End Office Access Rate means $0.005
                      per minute plus two-thirds of any difference between the 2011 Baseline Composite Terminating
                      End Office Access Rate and $0.005 per minute.

                (iii) Beginning July 1, 2014, no Rate-of-Return Carrier's interstate Composite Terminating End Office
                      Access Rate shall exceed its 2014 Target Composite Terminating End Office Access Rate. A
                      rate-of-return carrier shall determine compliance by calculating interstate Composite
                      Terminating End Office Access Rates using the relevant projected interstate demand for the
                      tariff period multiplied by the respective interstate rates as of July 1, 2014, and then dividing by
                      the projected interstate terminating end office local switching demand for the tariff period. A
                      rate-of-return carrier's intrastate terminating end office access rates may not exceed the
                      comparable interstate terminating end office access rates. In the alternative, any Rate-of-Return
                      Carrier may elect to implement a single per minute rate element for both interstate and
                      intrastate terminating End Office Access Service no greater than the 2014 Target Composite
                      Terminating End Office Access Rate if its intrastate terminating end office access rates would
                      be at rate parity with its interstate terminating end office access rates.

           (4) Nothing in this section obligates or allows a Rate-of-Return Carrier that has intrastate rates lower
               than its functionally equivalent interstate rates to make any intrastate tariff filing or intrastate tariff
               revisions raising such rates.

     (e) Step 4. Beginning July 1, 2015, notwithstanding any other provision of the Commission's rules:

           (1) Each Rate-of-Return Carrier shall establish rates for interstate and intrastate terminating End Office
               Access Service using the following methodology:

                 (i)   Each Rate-of-Return Carrier shall calculate its 2015 Target Composite Terminating End Office
                       Access Rate. The 2015 Target Composite Terminating End Office Access Rate means $0.005
                       per minute plus one-third of any difference between the 2011 Baseline Composite Terminating
                       End Office Access Rate and $0.005 per minute.

47 CFR 51.909(e)(1)(i) (enhanced display)                                                                     page 75 of 102
47 CFR Part 51 (up to date as of 2/20/2024)
                                                                                                        47 CFR 51.909(e)(1)(ii)
Interconnection

                 (ii) Beginning July 1, 2015, no Rate-of-Return Carrier's interstate Composite Terminating End Office
                      Access Rate shall exceed its 2015 Target Composite Terminating End Office Access Rate. A
                      rate-of-return carrier shall determine compliance by calculating interstate Composite
                      Terminating End Office Access Rates using the relevant projected interstate demand for the
                      tariff period multiplied by the respective interstate rates as of July 1, 2015, and then dividing by
                      the projected interstate terminating end office local switching demand for the tariff period. A
                      rate-of-return carrier's intrastate terminating end office access rates may not exceed the
                      comparable interstate terminating end office access rates. In the alternative, any Rate-of-Return
                      Carrier may elect to implement a single per minute rate element for both interstate and
                      intrastate terminating End Office Access Service no greater than the 2015 Target Composite
                      Terminating End Office Access Rate if its intrastate terminating end office access rates would
                      be at rate parity with its interstate terminating end office access rates. Nothing in this section
                      obligates or allows a Rate-of–Return Carrier that has intrastate rates lower than its functionally
                      equivalent interstate rates to make any intrastate tariff filing or intrastate tariff revisions raising
                      such rates.

           (2) [Reserved]

     (f) Step 5. Beginning July 1, 2016, notwithstanding any other provision of the Commission's rules, each Rate-
         of-Return Carrier shall establish interstate terminating End Office Access Service rates such that its
         interstate Composite Terminating End Office Access Service rate does not exceed $0.005 per minute. A
         rate-of-return carrier shall determine compliance by calculating interstate Composite Terminating End
         Office Access Rates using the relevant projected interstate demand for the tariff period multiplied by the
         respective interstate rates as of July 1, 2016, and then dividing by the projected interstate terminating end
         office local switching demand for the tariff period. A rate-of-return carrier's intrastate terminating end
         office access rates may not exceed the comparable interstate terminating end office access rates. In the
         alternative, any Rate-of-Return Carrier may elect to implement a single per minute rate element for both
         interstate and intrastate terminating End Office Access Service no greater than the 2016 Target
         Composite Terminating End Office Access Rate if its intrastate terminating end office access rates would
         be at rate parity with its interstate terminating end office access rates. Nothing in this section obligates or
         allows a Rate-of-Return Carrier that has intrastate rates lower than its functionally equivalent interstate
         rates to make any intrastate tariff filing or intrastate tariff revisions raising such rates.

     (g) Step 6. Beginning July 1, 2017, notwithstanding any other provision of the Commission's rules:

           (1) Each Rate-of-Return Carrier shall establish interstate and intrastate rates for terminating End Office
               Access Service using the following methodology:

                 (i)   Each Rate-of-Return Carrier shall calculate its 2017 Target Composite Terminating End Office
                       Access Rate. The 2017 Target Composite Terminating End Office Access Rate means $0.0007
                       per minute plus two-thirds of any difference between that carrier's 2016 Target Composite
                       Terminating End Office Access Rate and $0.0007 per minute.

                 (ii) Beginning July 1, 2017, no Rate-of–Return Carrier's interstate Composite Terminating End Office
                      Access Rate shall exceed its 2017 Target Composite Terminating End Office Access Rate. A
                      rate-of-return carrier shall determine compliance by calculating interstate Composite
                      Terminating End Office Access Rates using the relevant projected interstate demand for the
                      tariff period multiplied by the respective interstate rates as of July 1, 2017, and then dividing by
                      the projected interstate terminating end office local switching demand for the tariff period. A
                      rate-of-return carrier's intrastate terminating end office access rates may not exceed the
                      comparable interstate terminating end office access rates. In the alternative, any Rate-of-Return
47 CFR 51.909(g)(1)(ii) (enhanced display)                                                                     page 76 of 102
47 CFR Part 51 (up to date as of 2/20/2024)
                                                                                                            47 CFR 51.909(g)(2)
Interconnection

                        Carrier may elect to implement a single per minute rate element for both interstate and
                        intrastate terminating End Office Access Service no greater than the 2017 Target Composite
                        Terminating End Office Access Rate if its intrastate terminating end office access rates would
                        be at rate parity with its interstate terminating end office access rates. Nothing in this section
                        obligates or allows a Rate-of–Return Carrier that has intrastate rates lower than its functionally
                        equivalent interstate rates to make any intrastate tariff filing or intrastate tariff revisions raising
                        such rates.

            (2) [Reserved]

     (h) Step 7. Beginning July 1, 2018, notwithstanding any other provision of the Commission's rules:

            (1) Each Rate-of-Return Carrier shall establish interstate and intrastate rates for terminating End Office
                Access Service using the following methodology:

                  (i)   Each Rate-of-Return Carrier shall calculate its 2018 Target Composite Terminating End Office
                        Access Rate. The 2018 Target Composite Terminating End Office Access Rate means $0.0007
                        per minute plus one-third of any difference between that carrier's 2016 Target Composite
                        Terminating End Office Access Rate and $0.0007 per minute.

                 (ii) Beginning July 1, 2018, no Rate-of-Return Carrier's interstate Composite Terminating End Office
                      Access Rate shall exceed its 2018 Target Composite Terminating End Office Access Rate. A
                      rate-of-return carrier shall determine compliance by calculating interstate Composite
                      Terminating End Office Access Rates using the relevant projected interstate demand for the
                      tariff period multiplied by the respective interstate rates as of July 1, 2018 and then dividing by
                      the projected interstate terminating end office local switching demand for the tariff period. A
                      rate-of-return carrier's intrastate terminating end office access rates may not exceed the
                      comparable interstate terminating end office access rates. In the alternative, any Rate-of-Return
                      Carrier may elect to implement a single per minute rate element for both interstate and
                      intrastate terminating End Office Access Service no greater than the 2018 interstate Target
                      Composite Terminating End Office Access Rate if its intrastate terminating end office access
                      rates would be at rate parity with its interstate terminating end office access rates. Nothing in
                      this section obligates or allows a Rate-of–Return Carrier that has intrastate rates lower than its
                      functionally equivalent interstate rates to make any intrastate tariff filing or intrastate tariff
                      revisions raising such rates.

            (2) [Reserved]

      (i)   Step 8. Beginning July 1, 2019, notwithstanding any other provision of the Commission's rules, each Rate-
            of-Return Carrier shall establish interstate and intrastate rates for terminating End Office Access Service
            that do not exceed $0.0007 per minute.

      (j)   Step 9. Beginning July 1, 2020, notwithstanding any other provision of the Commission's rules, each Rate-
            of-Return Carrier shall, in accordance with a bill-and-keep methodology, revise and refile its federal access
            tariffs and any state tariffs to remove any intercarrier charges for terminating End Office Access Service.

     (k) As set forth in FCC 11–161, states will facilitate implementation of changes to intrastate access rates to
         ensure compliance with the Order. Nothing in this section shall alter the authority of a state to monitor
         and oversee filing of intrastate tariffs.

47 CFR 51.909(k) (enhanced display)                                                                              page 77 of 102
47 CFR Part 51 (up to date as of 2/20/2024)
                                                                                                             47 CFR 51.909(l)
Interconnection

      (l)   8YY Transition—Step 1. As of December 28, 2020, each rate-of-return carrier shall cap the rate for all
            intrastate originating access charge rate elements for Toll Free Calls, including for Toll Free Database
            Query Charges.

     (m) 8YY Transition—Step 2. Beginning July 1, 2021, and notwithstanding any other provision of the
         Commission's rules in this chapter, each Rate-of-Return Carrier shall:

            (1) Establish separate rate elements for interstate and intrastate toll free originating end office access
                service and non-toll free originating end office access service. Rate elements reflecting fixed charges
                associated with originating End Office Access Service shall be treated as non-toll free charges.

            (2) Reduce its intrastate toll free originating end office access service rates to its interstate toll free
                originating end office access service rates as follows:

                  (i)   Calculate total revenue from End Office Access Service, excluding non-usage-based rate
                        elements, at the carrier's interstate access rates in effect on June 30, 2020, using intrastate
                        switched access demand for each rate element for the 12 months ending June 30, 2020.

                 (ii) Calculate total revenue from End Office Access Service, excluding non-usage based rate
                      elements, at the carrier's intrastate access rates in effect on June 30, 2020, using intrastate
                      switched access demand for each rate element for the 12 months ending June 30, 2020.

                 (iii) If the value in paragraph (m)(2)(ii) of this section is less than or equal to the value in paragraph
                       (m)(2)(i) of this section, the Rate-of-Return Carrier's intrastate End Office Access Service rates
                       shall remain unchanged.

                 (iv) If the value in paragraph (m)(2)(ii) of this section is greater than the value in paragraph (m)(2)(i)
                      of this section, the Rate-of-Return Carrier shall reduce intrastate rates for End Office Access
                      Service so that they are equal to the Rate-of-Return Carrier's functionally equivalent interstate
                      rates for End Office Access Rates and shall be subject to the interstate rate structure and all
                      subsequent rate and rate structure modifications.

                 (v) Except as provided in paragraph (m)(2) of this section, nothing in this section allows a Rate-of-
                     Return Carrier that has intrastate rates lower than its functionally equivalent interstate rates to
                     make any intrastate tariff filing or intrastate tariff revisions to increase such rates. If a Rate-of-
                     Return Carrier has an intrastate rate for an End Office Access Service rate element that less
                     than the comparable interstate rate for that element, the Rate-of-Return Carrier may, if
                     necessary as part of a restructuring to reduce its intrastate rates for End Office Access Service
                     down to parity with functionally equivalent interstate rates, increase the rate for an intrastate
                     rate element that is below the comparable interstate rate for that element to the interstate rate
                     on July 1, 2021.

            (3) Establish separate rate elements for interstate and intrastate non-toll free originating transport
                services for service between an end office switch and the tandem switch and remove its rate for
                intrastate and interstate originating toll free transport services consistent with a bill-and-keep
                methodology (as defined in § 51.713).

            (4) Establish separate rate elements respectively for interstate and intrastate non-toll free originating
                tandem switching services.

            (5) Establish transitional interstate and intrastate Joint Tandem Switched Transport Access rate
                elements for Toll Free Calls that are respectively no more than $0.001 per minute.

47 CFR 51.909(m)(5) (enhanced display)                                                                         page 78 of 102
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Interconnection

           (6) Reduce its interstate and intrastate rates for Toll Free Database Query Charges to no more than
               $0.004248 per query. Nothing in this section obligates or allows a Rate-of-Return carrier that has Toll
               Free Database Query Charges lower than this rate to make any intrastate or interstate tariff filing
               revision to increase such rates.

     (n) 8YY Transition—Step 3. Beginning July 1, 2022, and notwithstanding any other provision of the
         Commission's rules in this chapter, each Rate-of-Return Carrier shall:

           (1) Reduce its interstate and intrastate rates for all originating End Office Access Service rate elements
               for Toll Free Calls in each state in which it provides such service by one-half of the maximum rate
               allowed by paragraph (a) of this section; and

           (2) Reduce its rates for intrastate and interstate Toll Free Database Query Charges by one-half of the
               difference between the rate permitted by paragraph (m)(6) of this section and the transitional rate of
               $0.0002 per query set forth in paragraph (o)(2) of this section.

     (o) 8YY Transition—Step 4. Beginning on July 1, 2023, and notwithstanding any other provision of the
         Commission's rules in this chapter, each Rate-of-Return Carrier shall:

           (1) In accordance with a bill-and-keep methodology, refile its interstate switched access tariff and any
               state tariff to remove any intercarrier charges for all intrastate and interstate originating End Office
               Access Service for Toll Free Calls; and

           (2) Reduce its rates for all intrastate and interstate Toll Free Database Query Charges to a transitional
               rate of no more than $0.0002 per query.

[76 FR 73856, Nov. 29, 2011, as amended at 77 FR 48452, Aug. 14, 2012; 78 FR 26267, May 6, 2013; 79 FR 28845, May 20, 2014;
85 FR 75917, Nov. 27, 2020]

§ 51.911 Access reciprocal compensation rates for competitive LECs.
     (a) Caps on Access Reciprocal Compensation and switched access rates. Notwithstanding any other provision
         of the Commission's rules:

           (1) In the case of Competitive LECs operating in an area served by a Price Cap Carrier, no such
               Competitive LEC may increase the rate for any originating or terminating intrastate switched access
               service above the rate for such service in effect on December 29, 2011.

           (2) In the case of Competitive LEC operating in an area served by an incumbent local exchange carrier
               that is a Rate-of-Return Carrier or Competitive LECs that are subject to the rural exemption in §
               61.26(e) of this chapter, no such Competitive LEC may increase the rate for any originating or
               terminating intrastate switched access service above the rate for such service in effect on December
               29, 2011, with the exception of intrastate originating access service. For such Competitive LECs,
               intrastate originating access service subject to this subpart shall remain subject to the same state
               rate regulation in effect December 31, 2011, as may be modified by the state thereafter.

     (b) Except as provided in paragraph (b)(7) of this section, beginning July 3, 2012, notwithstanding any other
         provision of the Commission's rules, each Competitive LEC that has tariffs on file with state regulatory
         authorities shall file intrastate access tariff provisions, in accordance with § 51.505(b)(2), that set forth
         the rates applicable to Transitional Intrastate Access Service in each state in which it provides
         Transitional Intrastate Access Service. Each Competitive Local Exchange Carrier shall establish the rates
         for Transitional Intrastate Access Service using the following methodology.

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           (1) Calculate total revenue from Transitional Intrastate Access Service at the carrier's interstate access
               rates in effect on December 29, 2011, using Fiscal Year 2011 intrastate switched access demand for
               each rate element.

           (2) Calculate total revenue from Transitional Intrastate Access Service at the carrier's intrastate access
               rates in effect on December 29, 2011, using Fiscal Year 2011 intrastate switched access demand for
               each rate element.

           (3) Calculate the Step 1 Access Revenue Reduction. The Step 1 Access Revenue Reduction is equal to
               one-half of the difference between the amount calculated in (b)(1) of this section and the amount
               calculated in (b)(2) of this section.

           (4) A Competitive Local Exchange Carrier may elect to establish rates for Transitional Intrastate Access
               Service using its intrastate access rate structure. Carriers using this option shall establish rates for
               Transitional Intrastate Access Service such that Transitional Intrastate Access Service revenue at
               the proposed rates is no greater than Transitional Intrastate Access Service revenue at the intrastate
               rates in effect as of December 29, 2011 less the Step 1 Access Revenue Reduction, using Fiscal year
               2011 intrastate switched access demand.

           (5) In the alternative, a Competitive Local Exchange Carrier may elect to apply its interstate access rate
               structure and interstate rates to Transitional Intrastate Access Service. In addition to applicable
               interstate access rates, the carrier may assess a transitional per-minute charge on Transitional
               Intrastate Access Service end office switching minutes (previously billed as intrastate access). The
               transitional charge shall be no greater than the Step 1 Access Revenue Reduction divided by Fiscal
               year 2011 intrastate switched access demand

           (6) Except as provided in paragraph (b)(7) of this section, nothing in this section obligates or allows a
               Competitive LEC that has intrastate rates lower than its functionally equivalent interstate rates to
               make any intrastate tariff filing or intrastate tariff revisions raising such rates.

           (7) If a Competitive LEC must make an intrastate switched access rate reduction pursuant to paragraph
               (b) of this section, and that Competitive LEC has an intrastate rate for a rate element that is below
               the comparable interstate rate for that element, the Competitive LEC may increase the rate for any
               intrastate rate element that is below the comparable interstate rate for that element to the interstate
               rate no later than July 1, 2013;

     (c) Beginning July 1, 2013, notwithstanding any other provision of the Commission's rules, all Competitive
         Local Exchange Carrier Access Reciprocal Compensation rates for switched exchange access services
         subject to this subpart shall be no higher than the Access Reciprocal Compensation rates charged by the
         competing incumbent local exchange carrier, in accordance with the same procedures specified in §
         61.26 of this chapter.

     (d) Cap on Database Query Charge. A Competitive Local Exchange Carrier assessing a tariffed intrastate or
         interstate Toll Free Database Query Charge shall cap such charge at the rate in effect on December 28,
         2020.

     (e) Transition of cap on Database Query Charge. Beginning July 1, 2021, notwithstanding any other provision
         of the Commission's rules in this chapter, a Competitive Local Exchange Carrier assessing a tariffed
         intrastate or interstate Toll Free Database Query Charge shall revise its tariffs as necessary to ensure that
         its intrastate and interstate Toll Free Database Query Charges do not exceed the rates charged by the
         competing incumbent local exchange carrier, as defined in § 61.26(a)(2) of this chapter.

47 CFR 51.911(e) (enhanced display)                                                                       page 80 of 102
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                                                                                                                 47 CFR 51.913
Interconnection

[76 FR 73856, Nov. 29, 2011, as amended at 77 FR 48452, Aug. 14, 2012; 85 FR 75917, Nov. 27, 2020; 85 FR 75917, Nov. 27, 2020]

§ 51.913 Transition for VoIP-PSTN traffic.
     (a)

           (1) Terminating Access Reciprocal Compensation subject to this subpart exchanged between a local
               exchange carrier and another telecommunications carrier in Time Division Multiplexing (TDM)
               format that originates and/or terminates in IP format shall be subject to a rate equal to the relevant
               interstate terminating access charges specified by this subpart. Interstate originating Access
               Reciprocal Compensation subject to this subpart exchanged between a local exchange carrier and
               another telecommunications carrier in Time Division Multiplexing (TDM) format that originates and/
               or terminates in IP format shall be subject to a rate equal to the relevant interstate originating access
               charges specified by this subpart.

           (2) Until June 30, 2014, intrastate originating Access Reciprocal Compensation subject to this subpart
               exchanged between a local exchange carrier and another telecommunications carrier in Time
               Division Multiplexing (TDM) format that originates and/or terminates in IP format shall be subject to
               a rate equal to the relevant intrastate originating access charges specified by this subpart. Effective
               July 1, 2014, originating Access Reciprocal Compensation subject to this subpart exchanged
               between a local exchange carrier and another telecommunications carrier in Time Division
               Multiplexing (TDM) format that originates and/or terminates in IP format shall be subject to a rate
               equal to the relevant interstate originating access charges specified by this subpart.

           (3) Telecommunications traffic originates and/or terminates in IP format if it originates from and/or
               terminates to an end-user customer of a service that requires Internet protocol-compatible customer
               premises equipment.

     (b) Notwithstanding any other provision of the Commission's rules, a local exchange carrier shall be entitled
         to assess and collect the full Access Reciprocal Compensation charges prescribed by this subpart that
         are set forth in a local exchange carrier's interstate or intrastate tariff for the access services defined in §
         51.903 regardless of whether the local exchange carrier itself delivers such traffic to the called party's
         premises or delivers the call to the called party's premises via contractual or other arrangements with an
         affiliated or unaffiliated provider of interconnected VoIP service, as defined in 47 U.S.C. 153(25), or a non-
         interconnected VoIP service, as defined in 47 U.S.C. 153(36), that does not itself seek to collect Access
         Reciprocal Compensation charges prescribed by this subpart for that traffic. This rule does not permit a
         local exchange carrier to charge for functions not performed by the local exchange carrier itself or the
         affiliated or unaffiliated provider of interconnected VoIP service or non-interconnected VoIP service. For
         purposes of this provision, functions provided by a LEC as part of transmitting telecommunications
         between designated points using, in whole or in part, technology other than TDM transmission in a
         manner that is comparable to a service offered by a local exchange carrier constitutes the functional
         equivalent of the incumbent local exchange carrier access service.

[76 FR 73856, Nov. 29, 2011, as amended at 77 FR 31536, May 29, 2012]

§ 51.914 Additional provisions applicable to Access Stimulation traffic.
     (a) Notwithstanding any other provision of this part, if a local exchange carrier is engaged in Access
         Stimulation, as defined in § 61.3(bbb) of this chapter, it shall, within 45 days of commencing Access
         Stimulation, or within 45 days of July 3, 2023, whichever is later:

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           (1) Not bill any Interexchange Carrier for interstate or intrastate terminating switched access tandem
               switching or terminating switched access transport charges for any traffic between such local
               exchange carrier's terminating end office or equivalent and the associated access tandem switch;
               and

           (2) Designate the Intermediate Access Provider(s), if any, that will provide terminating switched access
               tandem switching or terminating switched access tandem transport services to the local exchange
               carrier engaged in Access Stimulation; and

           (3) Assume financial responsibility for any applicable Intermediate Access Provider's charges for such
               services for any traffic between such local exchange carrier's terminating end office or equivalent
               and the associated access tandem switch.

     (b) Notwithstanding any other provision of this part, if a local exchange carrier is engaged in Access
         Stimulation, as defined in § 61.3(bbb) of this chapter, it shall, within 45 days of commencing Access
         Stimulation, or within 45 days of July 3, 2023, whichever is later, notify in writing the Commission, all
         Intermediate Access Providers that it subtends, and Interexchange Carriers with which it does business of
         the following:

           (1) That it is a local exchange carrier engaged in Access Stimulation; and

           (2) That it shall designate the Intermediate Access Provider(s), if any, that will provide the terminating
               switched access tandem switching or terminating switched access tandem transport services to the
               local exchange carrier engaged in Access Stimulation; and

           (3) That the local exchange carrier shall pay for those services as of that date.

     (c) Notwithstanding any other provision of the Commission's rules, if an IPES Provider, as defined in §
         61.3(eee) of this chapter, is engaged in Access Stimulation, as defined in § 61.3(bbb) of this chapter, then
         within 45 days of commencing Access Stimulation, or within 45 days of July 3, 2023, whichever is later:

           (1) The IPES Provider shall designate the Intermediate Access Provider(s), if any, that will provide
               terminating switched access tandem switching or terminating switched access tandem transport
               services to the IPES Provider engaged in Access Stimulation; and further

           (2) The IPES Provider may assume financial responsibility for any applicable Intermediate Access
               Provider's charges for such services for any traffic between such IPES Provider's terminating end
               office or equivalent and the associated access tandem switch; and

           (3) The Intermediate Access Provider shall not assess any charges for such services to the
               Interexchange Carrier.

     (d) Notwithstanding any other provision of this part, if an internet Protocol Enabled Service (IPES) Provider, as
         defined in § 61.3(eee) of this chapter, is engaged in Access Stimulation, as defined in § 61.3(bbb) of this
         chapter, it shall, within 45 days of commencing Access Stimulation, or within 45 days after January 2,
         2024, whichever is later, notify in writing the Commission, all Intermediate Access Providers that it
         subtends, and Interexchange Carriers with which it does business of the following:

           (1) That it is an IPES Provider engaged in Access Stimulation; and

           (2) That it shall designate the Intermediate Access Provider(s), if any, that will provide the terminating
               switched access tandem switching or terminating switched access tandem transport services
               directly, or indirectly through a local exchange carrier, to the IPES Provider engaged in Access
               Stimulation; and

47 CFR 51.914(d)(2) (enhanced display)                                                                     page 82 of 102
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           (3) Whether the IPES Provider will pay for those services as of that date.

     (e) In the event that an Intermediate Access Provider receives notice under paragraph (b) or (d) of this section
         that it has been designated to provide terminating switched access tandem switching or terminating
         switched access tandem transport services to a local exchange carrier engaged in Access Stimulation, as
         defined in § 61.3(bbb) of this chapter, or to an IPES Provider engaged in Access Stimulation, directly, or
         indirectly through a local exchange carrier, and that local exchange carrier engaged in Access Stimulation
         shall pay or the IPES Provider engaged in Access Stimulation may pay for such terminating access
         service from such Intermediate Access Provider, the Intermediate Access Provider shall not bill
         Interexchange Carriers for interstate or intrastate terminating switched access tandem switching or
         terminating switched access tandem transport service for traffic bound for such local exchange carrier or
         IPES Provider but, instead, shall bill such local exchange carrier or may bill such IPES Provider for such
         services.

     (f) Notwithstanding paragraphs (a) through (d) of this section, any local exchange carrier that is not itself
         engaged in Access Stimulation, as that term is defined in § 61.3(bbb) of this chapter, but serves as an
         Intermediate Access Provider with respect to traffic bound for a local exchange carrier engaged in Access
         Stimulation or bound for an IPES Provider engaged in Access Stimulation, shall not itself be deemed a
         local exchange carrier engaged in Access Stimulation or be affected by paragraphs (a) and (b) of this
         section.

     (g) Upon terminating its engagement in Access Stimulation, as defined in § 61.3(bbb) of this chapter, the
         local exchange carrier or IPES Provider engaged in Access Stimulation shall provide concurrent, written
         notification to the Commission and any affected Intermediate Access Provider(s) and Interexchange
         Carrier(s) of such fact.

[88 FR 35762, June 1, 2023, as amended at 88 FR 35762, June 1, 2023; 88 FR 83829, Dec. 1, 2023]

§ 51.915 Recovery mechanism for price cap carriers.
     (a) Scope. This section sets forth the extent to which Price Cap Carriers may recover certain revenues,
         through the recovery mechanism outlined below, to implement reforms adopted in FCC 11–161 and as
         required by § 20.11(b) of this chapter, and §§ 51.705 and 51.907.

     (b) Definitions. As used in this section and § 51.917, the following terms mean:

           (1) CALLS Study Area. A CALLS Study Area means a Price Cap Carrier study area that participated in the
               CALLS plan at its inception. See Access Charge Reform, Price Cap Performance Review for Local
               Exchange Carriers, Low-Volume Long-Distance Users, Federal-State Joint Board on Universal Service,
               Sixth Report and Order in CC Docket Nos. 96–262 and 94–1, Report and Order in CC Docket No.
               99–249, Eleventh Report and Order in CC Docket No. 96–45, 15 FCC Rcd 12962 (2000).

           (2) CALLS Study Area Base Factor. The CALLS Study Area Base Factor is equal to ninety (90) percent.

           (3) CMRS Net Reciprocal Compensation Revenues. CMRS Net Reciprocal Compensation Revenues
               means the reduction in net reciprocal compensation revenues required by § 20.11 of this chapter
               associated with CMRS traffic as described in § 51.701(b)(2), which is equal to its Fiscal Year 2011
               net reciprocal compensation revenues from CMRS carriers.

           (4) Expected Revenues for Access Recovery Charges. Expected Revenues for Access Recovery Charges
               are calculated using the tariffed Access Recovery Charge rate for each class of service and the
               forecast demand for each class of service.

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           (5) Initial Composite Terminating End Office Access Rate. Initial Composite Terminating End Office
               Access Rate means Fiscal Year 2011 terminating interstate End Office Access Service revenue
               divided by Fiscal Year 2011 terminating interstate end office switching minutes.

           (6) Lifeline Customer. A Lifeline Customer is a residential lifeline subscriber as defined by § 54.400(a) of
               this chapter that does not pay a Residential and/or Single-Line Business End User Common Line
               Charge.

           (7) Net Reciprocal Compensation. Net Reciprocal Compensation means the difference between a
               carrier's reciprocal compensation revenues from non-access traffic less its reciprocal compensation
               payments for non-access traffic during a stated period of time. For purposes of the calculations
               made under §§ 51.915 and 51.917, the term does not include reciprocal compensation revenues for
               non-access traffic exchanged between Local Exchange Carriers and CMRS providers; recovery for
               such traffic is addressed separately in these sections.

           (8) Non-CALLS Study Area. Non-CALLS Study Area means a Price Cap Carrier study area that did not
               participate in the CALLS plan at its inception.

           (9) Non-CALLS Study Area Base Factor. The Non-CALLS Study Area Base Factor is equal to one hundred
               (100) percent for five (5) years beginning July 1, 2012. Beginning July 1, 2017, the Non-CALLS Price
               Cap Carrier Base Factor will be equal to ninety (90) percent.

          (10) Price Cap Carrier Traffic Demand Factor. The Price Cap Carrier Traffic Demand Factor, as used in
               calculating eligible recovery, is equal to ninety (90) percent for the one-year period beginning July 1,
               2012. It is reduced by ten (10) percent of its previous value in each subsequent annual tariff filing.

          (11) Rate Ceiling Component Charges. The Rate Ceiling Component Charges consists of the federal end
               user common line charge and the Access Recovery Charge; the flat rate for residential local service
               (sometimes know as the “1FR” or “R1” rate), mandatory extended area service charges, and state
               subscriber line charges; per-line state high cost and/or state access replacement universal service
               contributions, state E911 charges, and state TRS charges.

          (12) Residential Rate Ceiling. The Residential Rate Ceiling, which consists of the total of the Rate Ceiling
               Component Charges, is set at $30 per month. The Residential Rate Ceiling will be the higher of the
               rate in effect on January 1, 2012, or the rate in effect on January 1 in any subsequent year.

          (13) True-up Revenues for Access Recovery Charge. True-up revenues for Access Recovery Charge are
               equal to (projected demand minus actual realized demand for Access Recovery Charges) times the
               tariffed Access Recovery Charge. This calculation shall be made separately for each class of service
               and shall be adjusted to reflect any changes in tariffed rates for the Access Recovery Charge.
               Realized demand is the demand for which payment has been received by the time the true-up is
               made.

          (14) Intrastate 2014 Composite Terminating End Office Access Rate. The Intrastate 2014 Composite
               Terminating End Office Access Rate as used in this section is determined by

                 (i)   If a separate terminating rate is not already generally available, developing separate intrastate
                       originating and terminating end office rates in accordance with § 51.907(d)(1) using end office
                       access rates at their June 30, 2014, rate caps;

                 (ii) Multiplying the existing terminating June 30, 2014, intrastate end office access rates, or the
                      terminating rates developed in paragraph (b)(14)(i) of this section, by the relevant Fiscal Year
                      2011 intrastate demand; and

47 CFR 51.915(b)(14)(ii) (enhanced display)                                                                 page 84 of 102
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                 (iii) Dividing the sum of the revenues determined in paragraph (b)(14)(ii) of this section by 2011
                       Fiscal Year intrastate terminating local switching minutes.

     (c) 2011 Price Cap Carrier Base Period Revenue. 2011 Price Cap Carrier Base Period Revenue is equal to the
         sum of the following three components:

           (1) Terminating interstate end office switched access revenues and interstate Tandem-Switched
               Transport Access Service revenues for Fiscal Year 2011 received by March 31, 2012;

           (2) Fiscal Year 2011 revenues from Transitional Intrastate Access Service received by March 31, 2012;
               and

           (3) Fiscal Year 2011 reciprocal compensation revenues received by March 31, 2012, less fiscal year
               2011 reciprocal compensation payments made by March 31, 2012.

     (d) Eligible recovery for Price Cap Carriers.

           (1) Notwithstanding any other provision of the Commission's rules, a Price Cap Carrier may recover the
               amounts specified in this paragraph through the mechanisms described in paragraphs (e) and (f) of
               this section.

                 (i)   Beginning July 1, 2012, a Price Cap Carrier's eligible recovery will be equal to the CALLS Study
                       Area Base Factor and/or the Non-CALLS Study Area Base Factor, as applicable, multiplied by
                       the sum of the following three components:

                       (A) The amount of the reduction in Transitional Intrastate Access Service revenues
                           determined pursuant to § 51.907(b)(2) multiplied by the Price Cap Carrier Traffic Demand
                           Factor;

                       (B) CMRS Net Reciprocal Compensation Revenues multiplied by the Price Cap Carrier Traffic
                           Demand Factor; and

                       (C) A Price Cap Carrier's reductions in Fiscal Year 2011 net reciprocal compensation revenues
                           resulting from rate reductions required by § 51.705, other than those associated with
                           CMRS traffic as described in § 51.701(b)(2), which may be calculated in one of the
                           following ways:

                             (1) Calculate the reduction in Fiscal Year 2011 net reciprocal compensation revenue as a
                                 result of rate reductions required by § 51.705 using Fiscal Year 2011 reciprocal
                                 compensation demand, and then multiply by the Price Cap Carrier Traffic Demand
                                 Factor;

                             (2) By using a composite reciprocal compensation rate as follows:

                                   (i)   Establish a composite reciprocal compensation rate for its Fiscal Year 2011
                                         reciprocal compensation receipts and its Fiscal Year 2011 reciprocal
                                         compensation payments by dividing its Fiscal Year 2011 reciprocal
                                         compensation receipts and payments by its respective Fiscal Year 2011
                                         demand excluding demand for traffic exchanged pursuant to a bill-and-keep
                                         arrangement;

47 CFR 51.915(d)(1)(i)(C)(2)(i) (enhanced display)                                                          page 85 of 102
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                                  (ii) Calculate the difference between each of the composite reciprocal
                                       compensation rates and the target reciprocal compensation rate set forth in §
                                       51.705 for the year beginning July 1, 2012 multiply by the appropriate Fiscal
                                       Year 2011 demand, and then multiply by the Price Cap Carrier Traffic Demand
                                       Factor; or

                            (3) For the purpose of establishing its recovery for net reciprocal compensation, a Price
                                Cap Carrier may elect to forgo this step and receive no recovery for reductions in net
                                reciprocal compensation. If a carrier elects this option, it may not change its election
                                at a later date.

                 (ii) Beginning July 1, 2013, a Price Cap Carrier's eligible recovery will be equal to the CALLS Study
                      Area Base Factor and/or the Non-CALLS Study Area Base Factor, as applicable, multiplied by
                      the sum of the following three components:

                       (A) The cumulative amount of the reduction in Transitional Intrastate Access Service revenues
                           determined pursuant to § 51.907(b)(2) and (c) multiplied by the Price Cap Carrier Traffic
                           Demand Factor; and

                       (B) CMRS Net Reciprocal Compensation Revenues multiplied by the Price Cap Carrier Traffic
                           Demand Factor; and

                       (C) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011 net reciprocal
                           compensation revenues other than those associated with CMRS traffic as described in §
                           51.701(b)(2) resulting from rate reductions required by § 51.705 may be calculated in one
                           of the following ways:

                            (1) Calculate the cumulative reduction in Fiscal Year 2011 net reciprocal compensation
                                revenue as a result of rate reductions required by § 51.705 using Fiscal Year 2011
                                reciprocal compensation demand and then multiply by the Price Cap Carrier Traffic
                                Demand Factor;

                            (2) By using a composite reciprocal compensation rate as follows:

                                   (i)   Establish a composite reciprocal compensation rate for its Fiscal Year 2011
                                         reciprocal compensation receipts and its Fiscal Year 2011 reciprocal
                                         compensation payments by dividing its Fiscal Year 2011 reciprocal
                                         compensation receipts and payments by its respective Fiscal Year 2011
                                         demand excluding demand for traffic exchanged pursuant to a bill-and-keep
                                         arrangement;

                                  (ii) Calculate the difference between each of the composite reciprocal
                                       compensation rates and the target reciprocal compensation rate set forth in §
                                       51.705 for the year beginning July 1, 2013, using the appropriate Fiscal Year
                                       2011 demand, and then multiply by the Price Cap Carrier Traffic Demand Factor;
                                       or

                            (3) For the purpose of establishing its recovery for net reciprocal compensation, a Price
                                Cap Carrier may elect to forgo this step and receive no recovery for reductions in net
                                reciprocal compensation. If a carrier elects this option, it may not change its election
                                at a later date.

47 CFR 51.915(d)(1)(ii)(C)(3) (enhanced display)                                                             page 86 of 102
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                 (iii) Beginning July 1, 2014, a Price Cap Carrier's eligible recovery will be equal to the CALLS Study
                       Area Base Factor and/or the Non-CALLS Study Area Base Factor, as applicable, multiplied by
                       the sum of the amounts in paragraphs (d)(1)(iii)(A) through (d)(1)(iii)(E), of this section, and
                       then adding the amount in paragraph (d)(1)(iii)(F) of this section to that amount:

                       (A) The amount of the reduction in Transitional Intrastate Access Service revenues
                           determined pursuant to § 51.907(b)(2) and (c) multiplied by the Price Cap Carrier Traffic
                           Demand Factor; and

                       (B) The reduction in interstate switched access revenues equal to the difference between the
                           2011 Baseline Composite Terminating End Office Access Rate and the 2014 Target
                           Composite Terminating End Office Access Rate determined pursuant to § 51.907(d) using
                           Fiscal Year 2011 terminating interstate end office switching minutes, and then multiply by
                           the Price Cap Carrier Traffic Demand Factor;

                       (C) If the carrier reduced its 2014 Intrastate Terminating End Office Access Rate(s) pursuant
                           to § 51.907(d)(2), the reduction in revenues equal to the difference between either the
                           Intrastate 2014 Composite Terminating End Office Access Rate and the Composite
                           Terminating End Office Access Rate based on the maximum terminating end office rates
                           that could have been charged on July 1, 2014, or the 2014 Target Composite Terminating
                           End Office Access Rate, as applicable, using Fiscal Year 2011 terminating intrastate end
                           office switching minutes, and then multiply by the Price Cap Carrier Traffic Demand Factor;

                       (D) CMRS Net Reciprocal Compensation Revenues multiplied by the Price Cap Carrier Traffic
                           Demand Factor; and

                       (E) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011 net reciprocal
                           compensation revenues other than those associated with CMRS traffic as described in §
                           51.701(b)(2) resulting from rate reductions required by § 51.705 may be calculated in one
                           of the following ways:

                             (1) Calculate the cumulative reduction in Fiscal Year 2011 net reciprocal compensation
                                 revenue as a result of rate reductions required by § 51.705 using Fiscal Year 2011
                                 reciprocal compensation demand, and then multiply by the Price Cap Carrier Traffic
                                 Demand Factor;

                             (2) By using a composite reciprocal compensation rate as follows:

                                    (i)   Establish a composite reciprocal compensation rate for its Fiscal Year 2011
                                          reciprocal compensation receipts and its Fiscal Year 2011 reciprocal
                                          compensation payments by dividing its Fiscal Year 2011 reciprocal
                                          compensation receipts and payments by its respective Fiscal Year 2011
                                          demand excluding demand for traffic exchanged pursuant to a bill-and-keep
                                          arrangement;

                                   (ii) Calculate the difference between each of the composite reciprocal
                                        compensation rates and the target reciprocal compensation rate set forth in §
                                        51.705 for the year beginning July 1, 2014, using the appropriate Fiscal Year
                                        2011 demand, and then multiply by the Price Cap Carrier Traffic Demand Factor;
                                        or

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                             (3) For the purpose of establishing its recovery for net reciprocal compensation, a Price
                                 Cap Carrier may elect to forgo this step and receive no recovery for reductions in net
                                 reciprocal compensation. If a carrier elects this option, it may not change its election
                                 at a later date.

                       (F) An amount equal to True-up Revenues for Access Recovery Charges for the year beginning
                           July 1, 2012.

                 (iv) Beginning July 1, 2015, a Price Cap Carrier's eligible recovery will be equal to the CALLS Study
                      Area Base Factor and/or the Non-CALLS Study Area Base Factor, as applicable, multiplied by
                      the sum of the amounts in paragraphs (d)(1)(iv)(A) through (d)(1)(iv)(E) of this section and then
                      adding the amount in paragraph (d)(1)(iv)(F) of this section to that amount:

                       (A) The amount of the reduction in Transitional Intrastate Access Service revenues
                           determined pursuant to § 51.907(b)(2) and (c) multiplied by the Price Cap Carrier Traffic
                           Demand Factor;

                       (B) The reduction in interstate switched access revenues equal to the difference between the
                           2011 Baseline Composite Terminating End Office Access Rate and the 2015 Target
                           Composite Terminating End Office Access Rate determined pursuant to § 51.907(e) using
                           Fiscal Year 2011 terminating interstate end office switching minutes, and then multiply by
                           the Price Cap Carrier Traffic Demand Factor;

                       (C) If the carrier reduced its Intrastate Terminating End Office Access Rate(s) pursuant to §
                           51.907(e)(1), the reduction in intrastate switched access revenues equal to the difference
                           between either the intrastate 2014 Composite Terminating End Office Access Rate and the
                           Composite Terminating End Office Access Rate based on the maximum terminating end
                           office rates that could have been charged on July 1, 2015, or the 2015 Target Composite
                           Terminating End Office Access Rate, as applicable, using Fiscal Year 2011 terminating
                           intrastate end office switching minutes, and then multiply by the Price Cap Carrier Traffic
                           Demand Factor; and

                       (D) CMRS Net Reciprocal Compensation Revenues multiplied by the Price Cap Carrier Traffic
                           Demand Factor;

                       (E) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011 net reciprocal
                           compensation revenues other than those associated with CMRS traffic as described in §
                           51.701(b)(2) resulting from rate reductions required by § 51.705 may be calculated in one
                           of the following ways:

                             (1) Calculate the cumulative reduction in Fiscal Year 2011 net reciprocal compensation
                                 revenue as a result of rate reductions required by § 51.705 using Fiscal Year 2011
                                 reciprocal compensation demand, and then multiply by the Price Cap Carrier Traffic
                                 Demand Factor;

                             (2) By using a composite reciprocal compensation rate as follows:

                                   (i)   Establish a composite reciprocal compensation rate for its Fiscal Year 2011
                                         reciprocal compensation receipts and its Fiscal Year 2011 reciprocal
                                         compensation payments by dividing its Fiscal Year 2011 reciprocal

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                                        compensation receipts and payments by its respective Fiscal Year 2011
                                        demand excluding demand for traffic exchanged pursuant to a bill-and-keep
                                        arrangement;

                                  (ii) Calculate the difference between each of the composite reciprocal
                                       compensation rates and the target reciprocal compensation rate set forth in §
                                       51.705 for the year beginning July 1, 2015, using the appropriate Fiscal Year
                                       2011 demand, and then multiply by the Price Cap Carrier Traffic Demand Factor;
                                       or

                            (3) For the purpose of establishing its recovery for net reciprocal compensation, a Price
                                Cap Carrier may elect to forgo this step and receive no recovery for reductions in net
                                reciprocal compensation. If a carrier elects this option, it may not change its election
                                at a later date.

                      (F) An amount equal to True-up Revenues for Access Recovery Charges for the year beginning
                          July 1, 2013.

                 (v) Beginning July 1, 2016, a Price Cap Carrier's eligible recovery will be equal to the CALLS Study
                     Area Base Factor and/or the Non-CALLS Study Area Base Factor, as applicable, multiplied by
                     the sum of the amounts in paragraphs (d)(1)(v)(A) through (d)(1)(v)(E), of this section and then
                     adding the amount in paragraph (d)(1)(v)(F) of this section to that amount:

                      (A) The amount of the reduction in Transitional Intrastate Access Service revenues
                          determined pursuant to § 51.907(b)(2) and (c) multiplied by the Price Cap Carrier Traffic
                          Demand Factor;

                      (B) The reduction in interstate switched access revenues equal to the difference between the
                          2011 Baseline Composite Terminating End Office Access Rate and $0.0007 determined
                          pursuant to § 51.907(f) using Fiscal Year 2011 terminating interstate end office switching
                          minutes, and then multiply by the Price Cap Carrier Traffic Demand Factor;

                      (C) If the carrier reduced its Intrastate Terminating End Office Access Rate(s) pursuant to §
                          51.907(f), the reduction in revenues equal to the difference between either the Intrastate
                          2014 Composite Terminating End Office Access Rate and $0.0007 based on the maximum
                          terminating end office rates that could have been charged on July 1, 2016, or the 2016
                          Target Composite Terminating End Office Access Rate, as applicable, using Fiscal Year
                          2011 terminating intrastate end office minutes, and then multiply by the Price Cap Carrier
                          Traffic Demand Factor;

                      (D) CMRS Net Reciprocal Compensation Revenues multiplied by the Price Cap Carrier Traffic
                          Demand Factor;

                      (E) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011 net reciprocal
                          compensation revenues other than those associated with CMRS traffic as described in §
                          51.701(b)(2) resulting from rate reductions required by § 51.705 may be calculated in one
                          of the following ways:

                            (1) Calculate the cumulative reduction in Fiscal Year 2011 net reciprocal compensation
                                revenue as a result of rate reductions required by § 51.705 using Fiscal Year 2011
                                reciprocal compensation demand, and then multiply by the Price Cap Carrier Traffic
                                Demand Factor;

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                            (2) By using a composite reciprocal compensation rate as follows:

                                  (i)   Establish a composite reciprocal compensation rate for its Fiscal Year 2011
                                        reciprocal compensation receipts and its Fiscal Year 2011 reciprocal
                                        compensation payments by dividing its Fiscal Year 2011 reciprocal
                                        compensation receipts and payments by its respective Fiscal Year 2011
                                        demand excluding demand for traffic exchanged pursuant to a bill-and-keep
                                        arrangement;

                                  (ii) Calculate the difference between each of the composite reciprocal
                                       compensation rates and the target reciprocal compensation rate set forth in §
                                       51.705 for the year beginning July 1, 2016, using the appropriate Fiscal Year
                                       2011 demand, and then multiply by the Price Cap Carrier Traffic Demand Factor;
                                       or

                            (3) For the purpose of establishing its recovery for net reciprocal compensation, a Price
                                Cap Carrier may elect to forgo this step and receive no recovery for reductions in net
                                reciprocal compensation. If a carrier elects this option, it may not change its election
                                at a later date.

                      (F) An amount equal to True-up Revenues for Access Recovery Charges for the year beginning
                          July 1, 2014.

                (vi) Beginning July 1, 2017, a Price Cap Carrier's eligible recovery will be equal to ninety (90) percent
                     of the sum of the amounts in paragraphs (d)(1)(vi) through (d)(1)(vi)(F) of this section, and then
                     adding the amount in paragraph (d)(1)(vi)(G) f this section to that amount:

                      (A) The amount of the reduction in Transitional Intrastate Access Service revenues
                          determined pursuant to § 51.907(b)(2) and (c) multiplied by the Price Cap Carrier Traffic
                          Demand Factor; and

                      (B) The reduction in interstate switched access revenues equal to the 2011 Baseline
                          Composite Terminating End Office Access Rate using Fiscal Year 2011 terminating
                          interstate end office switching minutes, and then multiply by the Price Cap Carrier Traffic
                          Demand Factor;

                      (C) The reduction in revenues equal to the intrastate 2014 Composite terminating End Office
                          Access Rate using Fiscal Year 2011 terminating intrastate end office switching minutes,
                          and then multiply by the Price Cap Carrier Traffic Demand Factor;

                      (D) The reduction in revenues resulting from reducing the terminating Tandem-Switched
                          Transport Access Service rate to $0.0007 pursuant to § 51.907(g)(2) using Fiscal Year
                          2011 terminating tandem-switched minutes, and then multiply by the Price Cap Carrier
                          Traffic Demand Factor;

                      (E) CMRS Net Reciprocal Compensation Revenues multiplied by the Price Cap Carrier Traffic
                          Demand Factor; and

                      (F) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011 net reciprocal
                          compensation revenues other than those associated with CMRS traffic as described in §
                          51.701(b)(2) resulting from rate reductions required by § 51.705 may be calculated in one
                          of the following ways:

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                            (1) Calculate the cumulative reduction in Fiscal Year 2011 net reciprocal compensation
                                revenue as a result of rate reductions required by § 51.705 using Fiscal Year 2011
                                reciprocal compensation demand, and then multiply by the Price Cap Carrier Traffic
                                Demand Factor;

                            (2) By using a composite reciprocal compensation rate as follows:

                                  (i)   Establish a composite reciprocal compensation rate for its Fiscal Year 2011
                                        reciprocal compensation receipts and its Fiscal Year 2011 reciprocal
                                        compensation payments by dividing its Fiscal Year 2011 reciprocal
                                        compensation receipts and payments by its respective Fiscal Year 2011
                                        demand excluding demand for traffic exchanged pursuant to a bill-and-keep
                                        arrangement;

                                  (ii) Calculate the difference between each of the composite reciprocal
                                       compensation rates and the target reciprocal compensation rate set forth in §
                                       51.705 for the year beginning July 1, 2017, using the appropriate Fiscal Year
                                       2011 demand, and then multiply by the Price Cap Carrier Traffic Demand Factor;
                                       or

                            (3) For the purpose of establishing its recovery for net reciprocal compensation, a Price
                                Cap Carrier may elect to forgo this step and receive no recovery for reductions in net
                                reciprocal compensation. If a carrier elects this option, it may not change its election
                                at a later date.

                      (G) An amount equal to True-up Revenues for Access Recovery Charges for the year beginning
                          July 1, 2015.

                (vii) Beginning July 1, 2018, a Price Cap Carrier's eligible recovery will be equal to ninety (90) percent
                      of the sum of the amounts in paragraphs (d)(1)(vii)(A) though (d)(1)(vii)(G) of this section, and
                      then adding the amount in paragraph (d)(1)(vii)(H) of this section to that amount:

                      (A) The amount of the reduction in Transitional Intrastate Access Service revenues
                          determined pursuant to § 51.907(b)(2) and (c) multiplied by the Price Cap Carrier Traffic
                          Demand Factor; and:

                      (B) The reduction in interstate switched access revenues equal to the 2011 Baseline
                          Composite Terminating End Office Access Rate using Fiscal Year 2011 terminating
                          interstate end office switching minutes, and then multiply by the Price Cap Carrier Traffic
                          Demand Factor;

                      (C) The reduction in revenues equal to the intrastate 2014 Composite terminating End Office
                          Access Rate using Fiscal Year 2011 terminating intrastate end office switching minutes,
                          and then multiply by the Price Cap Carrier Traffic Demand Factor;

                      (D) The reduction in revenues resulting from reducing the terminating Tandem-Switched
                          Transport Access Service rate to $0.0007 pursuant to § 51.907(g)(2) using Fiscal Year
                          2011 terminating tandem-switched minutes, and then multiply by the Price Cap Carrier
                          Traffic Demand Factor;

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                      (E) The reduction in revenues resulting from moving from a terminating Tandem-Switched
                          Transport Access Service rate tariffed at a maximum of $0.0007 to removal of intercarrier
                          charges pursuant to § 51.907(h), if applicable, using Fiscal Year 2011 terminating tandem-
                          switched minutes, and then multiply by the Price Cap Carrier Traffic Demand Factor;

                      (F) CMRS Net Reciprocal Compensation Revenues multiplied by the Price Cap Carrier Traffic
                          Demand Factor; and

                      (G) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011 net reciprocal
                          compensation revenues other than those associated with CMRS traffic as described in §
                          51.701(b)(2) resulting from rate reductions required by § 51.705 may be calculated in one
                          of the following ways:

                            (1) Calculate the cumulative reduction in Fiscal Year 2011 net reciprocal compensation
                                revenue as a result of rate reductions required by § 51.705 using Fiscal Year 2011
                                reciprocal compensation demand, and then multiply by the Price Cap Carrier Traffic
                                Demand Factor;

                            (2) By using a composite reciprocal compensation rate as follows:

                                  (i)   Establish a composite reciprocal compensation rate for its Fiscal Year 2011
                                        reciprocal compensation receipts and its Fiscal Year 2011 reciprocal
                                        compensation payments by dividing its Fiscal Year 2011 reciprocal
                                        compensation receipts and payments by its respective Fiscal Year 2011
                                        demand excluding demand for traffic exchanged pursuant to a bill-and-keep
                                        arrangement;

                                  (ii) Calculate the difference between each of the composite reciprocal
                                       compensation rates and the target reciprocal compensation rate set forth in §
                                       51.705 for the year beginning July 1, 2018, using the appropriate Fiscal Year
                                       2011 demand, and then multiply by the Price Cap Carrier Traffic Demand Factor;
                                       or

                            (3) For the purpose of establishing its recovery for net reciprocal compensation, a Price
                                Cap Carrier may elect to forgo this step and receive no recovery for reductions in net
                                reciprocal compensation. If a carrier elects this option, it may not change its election
                                at a later date.

                      (H) An amount equal to True-up Revenues for Access Recovery Charges for the year beginning
                          July 1, 2016.

                (viii) Beginning July 1, 2019, and in subsequent years, a Price Cap Carrier's eligible recovery will be
                       equal to the amount calculated in paragraph (d)(1)(vii)(A) through (d)(1)(vii)(H) of this section
                       before the application of the Price Cap Carrier Traffic Demand Factor applicable in 2018
                       multiplied by the appropriate Price Cap Carrier Traffic Demand Factor for the year in question,
                       and then adding an amount equal to True-up Revenues for Access Recovery Charges for the
                       year beginning July 1 two years earlier.

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           (2) If a Price Cap Carrier recovers any costs or revenues that are already being recovered through
               Access Recovery Charges or the Connect America Fund from another source, that carrier's ability to
               recover reduced switched access revenue from Access Recovery Charges or the Connect America
               Fund shall be reduced to the extent it receives duplicative recovery. Any duplicative recovery shall be
               reflected as a reduction to a carrier's Eligible Recovery calculated pursuant to § 51.915(d).

           (3) A Price Cap Carrier seeking revenue recovery must annually certify as part of its tariff filings to the
               Commission and to the relevant state commission that the carrier is not seeking duplicative recovery
               in the state jurisdiction for any Eligible Recovery subject to the recovery mechanism.

           (4) If a Price Cap Carrier receives payment for Access Recovery Charges after the period used to
               measure the adjustment to reflect the differences between estimated and actual revenues, it shall
               treat such payments as actual revenues in the year the payment is received and shall reflect this as
               an additional adjustment for that year.

     (e) Access Recovery Charge.

           (1) A charge that is expressed in dollars and cents per line per month may be assessed upon end users
               that may be assessed an end user common line charge pursuant to § 69.152 of this chapter, to the
               extent necessary to allow the Price Cap Carrier to recover some or all of its eligible recovery
               determined pursuant to paragraph (d) of this section, subject to the caps described in paragraph
               (e)(5) of this section. A Price Cap Carrier may elect to forgo charging some or all of the Access
               Recovery Charge.

           (2) Total Access Recovery Charges calculated by multiplying the tariffed Access Recovery Charge by the
               projected demand for the year in question may not recover more than the amount of eligible recovery
               calculated pursuant to paragraph (d) of this section for the year beginning on July 1.

           (3) For the purposes of this section, a Price Cap Carrier holding company includes all of its wholly-
               owned operating companies that are price cap incumbent local exchange carriers. A Price Cap
               Carrier Holding Company may recover the eligible recovery attributable to any price cap study areas
               operated by its wholly-owned operating companies through assessments of the Access Recovery
               Charge on end users in any price cap study areas operated by its wholly owned operating companies
               that are price cap incumbent local exchange carriers.

           (4) Distribution of Access Recovery Charges among lines of different types.

                 (i)   A Price Cap Carrier holding company that does not receive ICC-replacement CAF support
                       (whether because it elects not to or because it does not have sufficient eligible recovery after
                       the Access Recovery Charge is assessed or imputed) may not recover a higher fraction of its
                       total revenue recovery from Access Recovery Charges assessed on Residential and Single Line
                       Business lines than:

                       (A) The number of Residential and Single-Line Business lines divided by

                       (B) The sum of the number of Residential and Single-Line Business lines and two (2) times the
                           number of End User Common Line charges assessed on Multi-Line Business customers.

                 (ii) For purposes of this subpart, Residential and Single Line Business lines are lines (other than
                      lines of Lifeline Customers) assessed the residential and single line business end user
                      common line charge and lines assessed the non-primary residential end user common line
                      charge.

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                (iii) For purposes of this subpart, Multi-Line Business Lines are lines assessed the multi-line
                      business end user common line charge.

           (5) Per-line caps and other limitations on Access Recovery Charges

                 (i)   For each line other than lines of Lifeline Customers assessed a primary residential or single-line
                       business end user common line charge or a non-primary residential end user common line
                       charge pursuant to § 69.152 of this Chapter, a Price Cap Carrier may assess an Access
                       Recovery Charge as follows:

                       (A) Beginning July 1, 2012, a maximum of $0.50 per month for each line;

                       (B) Beginning July 1, 2013, a maximum of $1.00 per month for each line;

                       (C) Beginning July 1, 2014, a maximum of $1.50 per month for each line;

                       (D) Beginning July 1, 2015, a maximum of $2.00 per month for each line; and

                       (E) Beginning July 1, 2016, a maximum of $2.50 per month for each line.

                 (ii) For each line assessed a multi-line business end user common line charge pursuant to § 69.152
                      of this chapter, a Price Cap Carrier may assess an Access Recovery Charge as follows:

                       (A) Beginning July 1, 2012, a maximum of $1.00 per month for each multi-line business end
                           user common line charge assessed;

                       (B) Beginning July 1, 2013, a maximum of $2.00 per month for each multi-line business end
                           user common line charge assessed;

                       (C) Beginning July 1, 2014, a maximum of $3.00 per month for each multi-line business end
                           user common line charge assessed;

                       (D) Beginning July 1, 2015, a maximum of $4.00 per month for each multi-line business end
                           user common line charge assessed; and

                       (E) Beginning July 1, 2016, a maximum of $5.00 per month for each multi-line business end
                           user common line charge assessed.

                (iii) The Access Recovery Charge allowed by paragraph (e)(5)(i) of this section may not be
                      assessed to the extent that its assessment would bring the total of the Rate Ceiling Component
                      Charges above the Residential Rate Ceiling on January 1 of that year. This limitation applies
                      only to the first residential line obtained by a residential end user and does not apply to single-
                      line business customers.

                (iv) The Access Recovery Charge allowed by paragraph (e)(5)(ii) of this section may not be
                     assessed to the extent that its assessment would bring the total of the multi-line business end
                     user common line charge and the Access Recovery Charge above $12.20 per line.

                 (v) The Access Recovery Charge assessed on lines assessed the non-primary residential line end
                     user common line charge in a study area may not exceed the Access Recovery Charge
                     assessed on residential end-users' first residential line in that study area.

                (vi) The Access Recovery Charge may not be assessed on lines of any Lifeline Customers.

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                (vii) If in any year, the Price Cap Carrier's Access Recovery Charge is not at its maximum, the
                      succeeding year's Access Recovery Charge may not increase more than $.0.50 per line per
                      month for charges assessed under paragraph (e)(5)(i) of this section or $1.00 per line per
                      month for charges assessed under paragraph (e)(5)(ii) of this section.

     (f) Price Cap Carrier eligibility for CAF ICC Support.

           (1) A Price Cap Carrier shall elect in its July 1, 2012 access tariff filing whether it will receive CAF ICC
               Support under this paragraph. A Price Cap Carrier eligible to receive CAF ICC Support subsequently
               may elect at any time not to receive such funding. Once it makes the election not to receive CAFF
               ICC Support, it may not elect to receive such funding at a later date.

           (2) Beginning July 1, 2012, a Price Cap Carrier may recover any eligible recovery allowed by paragraph
               (d) that it could not have recovered through charges assessed pursuant to paragraph (e) of this
               section from CAF ICC Support pursuant to § 54.304. For this purpose, the Price Cap Carrier must
               impute the maximum charges it could have assessed under paragraph (e)of this section.

           (3) Beginning July 1, 2017, a Price Cap Carrier may recover two-thirds (2⁄3) of the amount it otherwise
               would have been eligible to recover under paragraph (f)(2) from CAF ICC Support.

           (4) Beginning July 1, 2018, a Price Cap Carrier may recover one-third (1/3) of the amount it otherwise
               would have been eligible to recover under paragraph (f)(2) of this section from CAF ICC Support.

           (5) Beginning July 1, 2019, a Price Cap Carrier may no longer recover any amount related to revenue
               recovery under this paragraph from CAF ICC Support.

           (6) A Price Cap Carrier that elects to receive CAF ICC support must certify with its annual access tariff
               filing that it has complied with paragraphs (d) and (e) of this section, and, after doing so, is eligible to
               receive the CAF ICC support requested pursuant to paragraph (f) of this section.

[76 FR 73856, Nov. 29, 2011, as amended at 77 FR 48453, Aug. 14, 2012; 78 FR 26268, May 6, 2013;79 FR 28846, May 20, 2014]

§ 51.917 Revenue recovery for Rate-of-Return Carriers.
     (a) Scope. This section sets forth the extent to which Rate-of-Return Carriers may recover, through the
         recovery mechanism outlined in paragraphs (d) through (f) of this section, a portion of revenues lost due
         to rate reductions required by § 20.11(b) of this chapter, and §§ 51.705 and 51.909.

     (b) Definitions.

           (1) 2011 Interstate Switched Access Revenue Requirement. 2011 Interstate Switched Access Revenue
               Requirement means:

                 (i)   For a Rate-of-Return Carrier that participated in the NECA 2011 annual switched access tariff
                       filing, its projected interstate switched access revenue requirement associated with the NECA
                       2011 annual interstate switched access tariff filing;

                 (ii) For a Rate-of-Return Carrier subject to § 61.38 of this chapter that filed its own annual access
                      tariff in 2010 and did not participate in the NECA 2011 annual switched access tariff filing, its
                      projected interstate switched access revenue requirement in its 2010 annual interstate
                      switched access tariff filing; and

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                (iii) For a Rate-of-Return Carrier subject to § 61.39 of this chapter that filed its own annual switched
                      access tariff in 2011, its historically-determined annual interstate switched access revenue
                      requirement filed with its 2011 annual interstate switched access tariff filing.

           (2) Expected Revenues. Expected Revenues from an access service are calculated using the default
               transition rate for that service specified by § 51.909 and forecast demand for that service. Expected
               Revenues from a non-access service are calculated using the default transition rate for that service
               specified by § 20.11 of this chapter or § 51.705 of this chapter and forecast net demand for that
               service.

           (3) Rate-of-Return Carrier Baseline Adjustment Factor. The Rate-of-Return Carrier Baseline Adjustment
               Factor, as used in calculating eligible recovery for Rate-of-Return Carriers, is equal to ninety-five (95)
               percent for the period beginning July 1, 2012. It is reduced by five (5) percent of its previous value in
               each subsequent annual tariff filing.

           (4) Revenue Requirement. Revenue Requirement is equal to a carrier's regulated operating costs plus an
               11.25 percent return on a carrier's net rate base calculated in compliance with the provisions of parts
               36, 65 and 69 of this chapter. For an average schedule carrier, its Revenue Requirement shall be
               equal to the average schedule settlements it received from the pool, adjusted to reflect an 11.25
               percent rate of return, or what it would have received if it had been a participant in the pool. If the
               reference is to an operating segment, these references are to the Revenue Requirement associated
               with that segment.

           (5) True-up Adjustment. The True-up Adjustment is equal to the True-up Revenues for any particular
               service for the period in question.

           (6) True-up Revenues. True-up Revenues from an access service are equal to (projected demand minus
               actual realized demand for that service) times the default transition rate for that service specified by
               § 51.909. True-up Revenues from a non-access service are equal to (projected demand minus actual
               realized net demand for that service) times the default transition rate for that service specified by §
               20.11(b) of this chapter or § 51.705. Realized demand is the demand for which payment has been
               received, or has been made, as appropriate, by the time the true-up is made.

           (7) 2011 Rate-of-Return Carrier Base Period Revenue. 2011 Rate-of-Return Carrier Base Period Revenue
               is the sum of:

                 (i)   2011 Interstate Switched Access Revenue Requirement;

                 (ii) Fiscal Year 2011 revenues from Transitional Intrastate Access Service received by March 31,
                      2012; and

                (iii) Fiscal Year 2011 reciprocal compensation revenues received by March 31, 2012, less Fiscal
                      Year 2011 reciprocal compensation payments paid and/or payable by March 31, 2012

     (c) Adjustment for Access Stimulation activity. 2011 Rate-of-Return Carrier Base Period Revenue shall be
         adjusted to reflect the removal of any increases in revenue requirement or revenues resulting from Access
         Stimulation activity the Rate-of-Return Carrier engaged in during the relevant measuring period. A Rate-of-
         Return Carrier should make this adjustment for its initial July 1, 2012, tariff filing, but the adjustment may
         result from a subsequent Commission or court ruling.

     (d) Eligible Recovery for Rate-of-Return Carriers.

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           (1) Notwithstanding any other provision of the Commission's rules, a Rate-of-Return Carrier may recover
               the amounts specified in this paragraph through the mechanisms described in paragraphs (e) and (f)
               of this section.

                 (i)   Beginning July 1, 2012, a Rate-of-Return Carrier's eligible recovery will be equal to the 2011
                       Rate-of-Return Carrier Base Period Revenue multiplied by the Rate-of-Return Carrier Baseline
                       Adjustment Factor less:

                       (A) The Expected Revenues from Transitional Intrastate Access Service for the year beginning
                           July 1, 2012, reflecting forecasted demand multiplied by the rates in the rate transition
                           contained in § 51.909;

                       (B) The Expected Revenues from interstate switched access for the year beginning July 1,
                           2012, reflecting forecasted demand multiplied by the rates in the rate transition contained
                           in § 51.909; and

                       (C) Expected Net Reciprocal Compensation Revenues for the year beginning July 1, 2012
                           using the target methodology required by § 51.705.

                 (ii) Beginning July 1, 2013, a Rate-of-Return Carrier's eligible recovery will be equal to the 2011
                      Rate-of-Return Carrier Base Period Revenue multiplied by the Rate-of-Return Carrier Baseline
                      Adjustment Factor less:

                       (A) The Expected Revenues from Transitional Intrastate Access Service for the year beginning
                           July 1, 2013, reflecting forecasted demand multiplied by the rates in the rate transition
                           contained in § 51.909;

                       (B) The Expected Revenues from interstate switched access for the year beginning July 1,
                           2013, reflecting forecasted demand multiplied by the rates in the rate transition contained
                           in § 51.909; and

                       (C) Expected Net Reciprocal Compensation Revenues for the year beginning July 1, 2013
                           using the target methodology required by § 51.705.

                 (iii) Beginning July 1, 2014, a Rate-of-Return Carrier's eligible recovery will be equal to the 2011
                       Rate-of-Return Carrier Base Period Revenue multiplied by the Rate-of-Return Carrier Baseline
                       Adjustment Factor less:

                       (A) The Expected Revenues from Transitional Intrastate Access Service for the year beginning
                           July 1, 2014, reflecting forecasted demand multiplied by the rates in the rate transition
                           contained in § 51.909 (including the reduction in intrastate End Office Switched Access
                           Service rates), adjusted to reflect the True-Up Adjustment for Transitional Intrastate
                           Access Service for the year beginning July 1, 2012;

                       (B) The Expected Revenues from interstate switched access for the year beginning July 1,
                           2014, reflecting forecasted demand multiplied by the rates in the rate transition contained
                           in § 51.909, adjusted to reflect the True-Up Adjustment for Interstate Switched Access for
                           the year beginning July 1, 2012; and

                       (C) Expected Net Reciprocal Compensation Revenues for the year beginning July 1, 2014
                           using the target methodology required by § 51.705, adjusted to reflect the True-Up
                           Adjustment for Reciprocal Compensation for the year beginning July 1, 2012.

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                         (D) An amount equal to True-up Revenues for Access Recovery Charges for the year beginning
                             July 1, 2012 multiplied by negative one.

                (iv) Beginning July 1, 2015, and for all subsequent years, a Rate-of-Return Carrier's eligible recovery
                     will be calculated by updating the procedures set forth in paragraph (d)(1)(iii) of this section for
                     the period beginning July 1, 2014, to reflect the passage of an additional year in each
                     subsequent year.

                 (v) If a Rate-of-Return Carrier receives payments for intrastate or interstate switched access
                     services or for Access Recovery Charges after the period used to measure the adjustments to
                     reflect the differences between estimated and actual revenues, it shall treat such payments as
                     actual revenue in the year the payment is received and shall reflect this as an additional
                     adjustment for that year.

                (vi) If a Rate-of-Return Carrier receives or makes reciprocal compensation payments after the
                     period used to measure the adjustments to reflect the differences between estimated and
                     actual net reciprocal compensation revenues, it shall treat such amounts as actual revenues or
                     payments in the year the payment is received or made and shall reflect this as an additional
                     adjustment for that year.

                (vii) If a Rate-of-Return Carrier recovers any costs or revenues that are already being recovered as
                      Eligible Recovery through Access Recovery Charges or the Connect America Fund from another
                      source, that carrier's ability to recover reduced switched access revenue from Access Recovery
                      Charges or the Connect America Fund shall be reduced to the extent it receives duplicative
                      recovery. Any duplicative recovery shall be reflected as a reduction to a carrier's Eligible
                      Recovery calculated pursuant to § 51.917(d). A Rate-of-Return Carrier seeking revenue recovery
                      must annually certify as part of its tariff filings to the Commission and to the relevant state
                      commission that the carrier is not seeking duplicative recovery in the state jurisdiction for any
                      Eligible Recovery subject to the recovery mechanism.

                (viii)

                         (A) If a Rate-of-Return Carrier in any tariff period underestimates its projected demand for
                             services covered by § 51.917(b)(6) or 51.915(b)(13), and thus has too much Eligible
                             Recovery in that tariff period, it shall refund the amount of any such True-up Revenues or
                             True-up Revenues for Access Recovery Charge that are not offset by the Rate-of-Return
                             Carrier's Eligible Recovery (calculated before including the true-up amounts in the Eligible
                             Recovery calculation) in the true-up tariff period to the Administrator by August 1 following
                             the date of the Rate-of-Return Carrier's annual access tariff filing.

                         (B) If a Rate-of-Return Carrier in any tariff period receives too little Eligible Recovery because it
                             overestimates its projected demand for services covered by § 51.917(b)(6) or
                             51.915(b)(13), which True-up Revenues and True-up Revenues for Access Recovery
                             Charge it cannot recover in the true-up tariff period because the Rate-of-Return Carrier has
                             a negative Eligible Recovery in the true-up tariff period (before calculating the true-up
                             amount in the Eligible Recovery calculation), the Rate-of-Return Carrier shall treat the
                             unrecoverable true-up amount as its Eligible Recovery for the true-up tariff period.

     (e) Access Recovery Charge.

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           (1) A charge that is expressed in dollars and cents per line per month may be assessed upon end users
               that may be assessed a subscriber line charge pursuant to § 69.104 of this chapter, to the extent
               necessary to allow the Rate-of-Return Carrier to recover some or all of its Eligible Recovery
               determined pursuant to paragraph (d) of this section, subject to the caps described in paragraph
               (e)(6) of this section. A Rate-of-Return Carrier may elect to forgo charging some or all of the Access
               Recovery Charge.

           (2) Total Access Recovery Charges calculated by multiplying the tariffed Access Recovery Charge by the
               projected demand for the year may not recover more than the amount of eligible recovery calculated
               pursuant to paragraph (d) of this section for the year beginning on July 1.

           (3) For the purposes of this section, a Rate-of-Return Carrier holding company includes all of its wholly-
               owned operating companies. A Rate-of-Return Carrier Holding Company may recover the eligible
               recovery attributable to any Rate-of-Return study areas operated by its wholly-owned operating
               companies that are Rate-of-Return incumbent local exchange carriers through assessments of the
               Access Recovery Charge on end users in any Rate-of-Return study areas operated by its wholly-
               owned operating companies that are Rate-of-Return incumbent local exchange carriers.

           (4) Distribution of Access Recovery Charges among lines of different types

                 (i)   A Rate-of-Return Carrier that does not receive ICC-replacement CAF support (whether because
                       they elect not to or because they do not have sufficient eligible recovery after the Access
                       Recovery Charge is assessed or imputed) may not recover a higher ratio of its total revenue
                       recovery from Access Recovery Charges assessed on Residential and Single Line Business
                       lines than the following ratio (using holding company lines):

                       (A) The number of Residential and Single-Line Business lines assessed an End User Common
                           Line charge (excluding Lifeline Customers), divided by

                       (B) The sum of the number of Residential and Single-Line Business lines assessed an End
                           User Common Line charge (excluding Lifeline Customers), and two (2) times the number
                           of End User Common Line charges assessed on Multi-Line Business customers.

           (5) For purposes of this subpart, Residential and Single Line Business lines are lines (other than lines of
               Lifeline Customers) assessed the residential and single line business end user common line charge.

                 (i)   For purposes of this subpart, Multi-Line Business Lines are lines assessed the multi-line
                       business end user common line charge.

                 (ii) [Reserved]

           (6) Per-line caps and other limitations on Access Recovery Charges.

                 (i)   For each line other than lines of Lifeline Customers assessed a primary residential or single-line
                       business end user common line charge pursuant to § 69.104 of this chapter, a Rate-of-Return
                       Carrier may assess an Access Recovery Charge as follows:

                       (A) Beginning July 1, 2012, a maximum of $0.50 per month for each line;

                       (B) Beginning July 1, 2013, a maximum of $1.00 per month for each line;

                       (C) Beginning July 1, 2014, a maximum of $1.50 per month for each line;

                       (D) Beginning July 1, 2015, a maximum of $2.00 per month for each line;

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                      (E) Beginning July 1, 2016, a maximum of $2.50 per month for each line; and

                      (F) Beginning July 1, 2017, a maximum of $3.00 per month for each line.

                 (ii) For each line assessed a multi-line business end user common line charge pursuant to § 69.104
                      of this chapter, a Rate-of-Return Carrier may assess an Access Recovery Charge as follows:

                      (A) Beginning July 1, 2012, a maximum of $1.00 per month for each multi-line business end
                          user common line charge assessed;

                      (B) Beginning July 1, 2013, a maximum of $2.00 per month for each multi-line business end
                          user common line charge assessed;

                      (C) Beginning July 1, 2014, a maximum of $3.00 per month for each multi-line business end
                          user common line charge assessed;

                      (D) Beginning July 1, 2015, a maximum of $4.00 per month for each multi-line business end
                          user common line charge assessed;

                      (E) Beginning July 1, 2016, a maximum of $5.00 per month for each multi-line business end
                          user common line charge assessed; and

                      (F) Beginning July 1, 2017, a maximum of $6.00 per month for each multi-line business end
                          user common line charge assessed.

                (iii) The Access Recovery Charge allowed by paragraph (e)(6)(i) of this section may not be
                      assessed to the extent that its assessment would bring the total of the Rate Ceiling Component
                      Charges above the Residential Rate Ceiling. This limitation does not apply to single-line
                      business customers.

                (iv) The Access Recovery Charge allowed by paragraph (e)(6)(ii) of this section may not be
                     assessed to the extent that its assessment would bring the total of the multi-line business end
                     user common line charge and the Access Recovery Charge above $12.20 per line.

                 (v) The Access Recovery Charge may not be assessed on lines of Lifeline Customers.

                (vi) If in any year, the Rate of return carriers' Access Recovery Charge is not at its maximum, the
                     succeeding year's Access Recovery Charge may not increase more than $0.50 per line for
                     charges under paragraph (e)(6)(i) of this section or $1.00 per line for charges assessed under
                     paragraph (e)(6)(ii) of this section.

                (vii) A Price Cap Carrier with study areas that are subject to rate-of-return regulation shall recover its
                      eligible recovery for such study areas through the recovery procedures specified in this section.
                      For that purpose, the provisions of paragraph (e)(3) of this section shall apply to the rate-of-
                      return study areas if the applicable conditions in paragraph (e)(3) of this section are met.

     (f) Rate-of-Return Carrier eligibility for CAF ICC Recovery.

           (1) A Rate-of-Return Carrier shall elect in its July 1, 2012 access tariff filing whether it will receive CAF
               ICC Support under this paragraph. A Rate-of-Return Carrier eligible to receive CAF ICC Support
               subsequently may elect at any time not to receive such funding. Once it makes the election not to
               receive CAF ICC Support, it may not elect to receive such funding at a later date.

47 CFR 51.917(f)(1) (enhanced display)                                                                      page 100 of 102
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           (2) Beginning July 1, 2012, a Rate-of-Return Carrier may recover any eligible recovery allowed by
               paragraph (d) of this section that it could not have recovered through charges assessed pursuant to
               paragraph (e) of this section from CAF ICC Support pursuant to § 54.304. For this purpose, the Rate-
               of-Return Carrier must impute the maximum charges it could have assessed under paragraph (e) of
               this section.

           (3) A Rate-of-Return Carrier that elects to receive CAF ICC support must certify with its annual access
               tariff filing that it has complied with paragraphs (d) and (e), and, after doing so, is eligible to receive
               the CAF ICC support requested pursuant to paragraph (f) of this section.

           (4) Except as provided in paragraph (f)(5) of this section, a Rate-of-Return Carrier must impute an
               amount equal to the Access Recovery Charge for each Consumer Broadband-Only Loop line that
               receives support pursuant to § 54.901 of this chapter, with the imputation applied before CAF–ICC
               recovery is determined. The per line per month imputation amount shall be equal to the Access
               Recovery Charge amount prescribed by paragraph (e) of this section, consistent with the residential
               or single-line business or multi-line business status of the retail customer.

           (5) Notwithstanding paragraph (f)(4) of this section, commencing July 1, 2018 and ending June 30,
               2023, the maximum total dollar amount a carrier must impute on supported consumer broadband-
               only loops is limited as follows:

                 (i)   For the affected tariff year, the carrier shall compare the amounts in paragraphs (f)(5)(i)(A) and
                       (B) of this section.

                       (A) The sum of the revenues from projected Access Recovery Charges assessed pursuant to
                           paragraph (e) of this section, any amounts imputed pursuant to paragraph (f)(2) of this
                           section, and any imputation pursuant to paragraph (f)(4) of this section.

                       (B) The sum of the revenues from Access Recovery Charges assessed pursuant to paragraph
                           (e) of this section and any amounts imputed pursuant to paragraph (f)(2) of this section
                           for tariff year 2015–16, after being trued-up.

                 (ii) If the amount determined in paragraph (f)(5)(i)(A) of this section is greater than the amount
                      determined in paragraph (f)(5)(i)(B), the sum of the revenues from projected Access Recovery
                      Charges assessed pursuant to paragraph (e) of this section and any amounts imputed pursuant
                      to paragraph (f)(2) of this section for the affected year must be compared to the amount
                      determined in paragraph (f)(5)(ii)(B) of this section.

                       (A) If the former amount is greater than the latter amount, no imputation is made on
                           Consumer Broadband-Only Loops.

                       (B) If the former amount is equal to or less than the latter amount, the imputation on
                           Consumer Broadband-Only Loops is limited to the difference between the two amounts.

[76 FR 73856, Nov. 29, 2011, as amended at 77 FR 14302, Mar. 9, 2012; 78 FR 26268, May 6, 2013; 79 FR 28847, May 20, 2014; 80
FR 15909, Mar. 26, 2015; 81 FR 24337, Apr. 25, 2016; 83 FR 14189, Apr. 3, 2018; 84 FR 57651, Oct. 28, 2019]

§ 51.919 Reporting and monitoring.
     (a) A Price Cap Carrier that elects to participate in the recovery mechanism outlined in § 51.915 shall,
         beginning in 2012, file with the Commission the data consistent with Section XIII (f)(3) of FCC 11–161
         with its annual access tariff filing.

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     (b) A Rate-of-Return Carrier that elects to participate in the recovery mechanism outlined in § 51.917 shall file
         with the Commission the data consistent with Section XIII (f)(3) of FCC 11–161 with its annual interstate
         access tariff filing, or on the date such a filing would have been required if it had been required to file in
         that year.

Effective Date Note: At 76 FR 73856, Nov. 29, 2011, § 51.919 was added. This section contains information
collection and recordkeeping requirements and will not become effective until approval has been given by the Office
of Management and Budget.

47 CFR 51.919(b) (enhanced display)                                                                      page 102 of 102