FCC Regulation Document

Part: 
Topic: C

47 CFR Part 36 (up to date as of 2/20/2024)
                                                                               47 CFR Part 36 (Feb. 20, 2024)
Jurisdictional Separations Procedures; Standard Procedures for...

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 36 Jurisdictional Separations Procedures; Standard Procedures for Separating
          Telecommunications Property Costs, Revenues, Expenses, Taxes and Reserves
          for Telecommunications Companies
  Subpart A        General
      § 36.1 General.
      § 36.2 Fundamental principles underlying procedures.
      § 36.3 Freezing of jurisdictional separations category relationships and/or allocation factors.
      § 36.4 Streamlining procedures for processing petitions for waiver of study area boundaries.
  Subpart B        Telecommunications Property
      General
         § 36.101 Section arrangement.
         § 36.102 General.
      General Support Facilities
         § 36.111 General.
         § 36.112 Apportionment procedure.
      Central Office Equipment
         § 36.121 General.
         § 36.122 Categories and apportionment procedures.
         § 36.123 Operator systems equipment—Category 1.
         § 36.124 Tandem switching equipment—Category 2.
         § 36.125 Local switching equipment—Category 3.
         § 36.126 Circuit equipment—Category 4.
      Information Origination/Termination (IOT) Equipment
         § 36.141 General.
         § 36.142 Categories and apportionment procedures.
      Cable and Wire Facilities
         § 36.151 General.
         § 36.152 Categories of Cable and Wire Facilities (C&WF).
         § 36.153 Assignment of Cable and Wire Facilities (C&WF) to categories.
         § 36.154 Exchange Line Cable and Wire Facilities (C&WF)—Category 1—apportionment
                   procedures.
         § 36.155 Wideband and exchange trunk (C&WF)—Category 2—apportionment procedures.
         § 36.156 Interexchange Cable and Wire Facilities (C&WF)—Category 3—apportionment

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                 procedures.
        § 36.157 Host/remote message Cable and Wire Facilities (C&WF)—Category
                 4—apportionment procedures.
     Amortizable Assets
        § 36.161 Tangible assets—Account 2680.
        § 36.162 Intangible assets—Account 2690.
     Telecommunications Plant—Other
        § 36.171 Property held for future telecommunications use—Account 2002;
                 Telecommunications plant under construction—Account 2003; and
                 Telecommunications plant adjustment—Account 2005.
     Rural Telephone Bank Stock
        § 36.172 Other noncurrent assets—Account 1410.
     Material and Supplies and Cash Working Capital
        § 36.181 Material and supplies—Account 1220.
        § 36.182 Cash working capital.
     Equal Access Equipment
        § 36.191 Equal access equipment.
   Subpart C     Operating Revenues and Certain Income Accounts
     General
        § 36.201 Section arrangement.
        § 36.202 General.
     Operating Revenues
        § 36.211 General.
        § 36.212 Basic local services revenue—Account 5000.
        § 36.213 Network access services revenues.
        § 36.214 Long distance message revenue—Account 5100.
        § 36.215 Miscellaneous revenue—Account 5200.
        § 36.216 Uncollectible revenue—Account 5300.
     Certain Income Accounts
        § 36.221 Other operating income and expenses—Account 7100.
        § 36.222 Nonoperating income and expenses—Account 7300.
        § 36.223 Interest and related items—Account 7500.
        § 36.224 Extraordinary items—Account 7600.
        § 36.225 Income effect of jurisdictional ratemaking differences—Account 7910.
   Subpart D     Operating Expenses and Taxes

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       General
          § 36.301 Section arrangement.
          § 36.302 General.
       Plant Specific Operations Expenses
          § 36.310 General.
       Network Support/General Support Expenses
          § 36.311 Network Support/General Support Expenses—Accounts 6110 and 6120.
       Central Office Expenses
          § 36.321 Central office expenses—Accounts 6210, 6220, and 6230.
       Information Origination/Termination Expenses
          § 36.331 Information origination/termination expenses—Account 6310.
       Cable and Wire Facilities Expenses
          § 36.341 Cable and wire facilities expenses—Account 6410.
       Plant Nonspecific Operations Expenses
          § 36.351 General.
       Plant Expenses—Other
          § 36.352 Other property plant and equipment expenses—Account 6510.
       Network Operations Expenses
          § 36.353 Network operations expenses—Account 6530.
          § 36.354 Access expenses—Account 6540.
       Depreciation and Amortization Expenses
          § 36.361 Depreciation and amortization expenses—Account 6560.
       Customer Operations Expenses
          § 36.371 General.
          § 36.372 Marketing—Account 6610.
          § 36.373 Services—Account 6620.
          § 36.374 Telephone operator services.
          § 36.375 Published directory listing.
          § 36.376 All other.
          § 36.377 Category 1—Local business office expense.
          § 36.378 Category 2—Customer services (revenue accounting).
          § 36.379 Message processing expense.
          § 36.380 Other billing and collecting expense.
          § 36.381 Carrier access charge billing and collecting expense.
          § 36.382 Category 3—All other customer services expense.
       Corporate Operations Expense
          § 36.391 General.
          § 36.392 General and administrative—Account 6720.
       Operating Taxes
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        § 36.411 Operating taxes—Account 7200.
        § 36.412 Apportionment procedures.
     Equal Access Expenses
        § 36.421 Equal access expenses.
   Subpart E     Reserves and Deferrals
     § 36.501 General.
     § 36.502 Other jurisdictional assets—Net—Account 1500.
     § 36.503 Accumulated depreciation—Account 3100.
     § 36.504 Accumulated depreciation—Property held for future telecommunications
               use—Account 3200.
     § 36.505 Accumulated amortization—Tangible—Account 3400.
     § 36.506 Net current deferred operating income taxes—Account 4100, Net noncurrent deferred
               operating income taxes—Account 4340.
     § 36.507 Other jurisdictional liabilities and deferred credits—Net—Account 4370.
   Subparts F–G [Reserved]
   Appendix to Part 36
     Glossary

PART 36—JURISDICTIONAL SEPARATIONS PROCEDURES;
STANDARD PROCEDURES FOR SEPARATING
TELECOMMUNICATIONS PROPERTY COSTS, REVENUES, EXPENSES,
TAXES AND RESERVES FOR TELECOMMUNICATIONS COMPANIES[1]
Authority: 47 U.S.C. 151, 152, 154(i) and (j), 201, 205, 220, 221(c), 254, 303(r), 403, 410, and 1302 unless
 otherwise noted.

Source: 52 FR 17229, May 6, 1987, unless otherwise noted.

Editorial Note: Nomenclature changes to part 36 appear at 74 FR 23956, May 22, 2009, 77 FR 30411, May 23,
2012, 82 FR 25538, June 2, 2017, and corrected at 83 FR 4153, Jan. 30, 2018. Nomenclature changes to part 36
also appear at 83 FR 63587, Dec. 11, 2018, and 84 FR 4360, Feb. 15, 2019.

Subpart A—General
§ 36.1 General.
     (a) This part contains an outline of separations procedures for telecommunications companies on the
         station-to-station basis. These procedures are applicable either to property costs, revenues, expenses,
         taxes, and reserves as recorded on the books of the company or to estimated amounts.

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          (1) Where a value basis is used instead of book costs, the “costs” referred to are the “values” of the
              property derived from the valuation.

     (b) The separations procedures set forth in this part are designed primarily for the allocation of property
         costs, revenues, expenses, taxes and reserves between state and interstate jurisdictions. For separations,
         where required, of the state portion between exchange and toll or for separations of individual exchanges
         or special services, further analyses and studies may be required to adapt the procedures to such
         additional separations.

     (c) The fundamental basis on which separations are made is the use of telecommunications plant in each of
         the operations. The first step is the assignment of the cost of the plant to categories. The basis for
         making this assignment is the identification of the plant assignable to each category and the
         determination of the cost of the plant so identified. The second step is the apportionment of the cost of
         the plant in each category among the operations by direct assignment where possible, and all remaining
         costs are assigned by the application of appropriate use factors.

     (d) In assigning book costs to categories, the costs used for certain plant classes are average unit costs
         which equate to all book costs of a particular account or subaccount; for other plant classes, the costs
         used are those which either directly approximate book cost levels or which are equated to match total
         book costs at a given location.

     (e) The procedures outlined herein reflect “short-cuts” where practicable and where their application produces
         substantially the same separations results as would be obtained by the use of more detailed procedures,
         and they assume the use of records generally maintained by Telecommunications Companies.

     (f) The classification to accounts of telecommunications property, revenues, expenses, etc., set forth in this
         manual is that prescribed by the Federal Communications Commission's Uniform System of Accounts for
         Telecommunications Companies.

     (g) In the assignment of property costs to categories and in the apportionment of such costs among the
         operations, each amount so assigned and apportioned is identified as to the account classification in
         which the property is included. Thus, the separated results are identified by property accounts and
         apportionment bases are provided for those expenses which are separated on the basis of the
         apportionment of property costs. Similarly, amounts of revenues and expenses assigned each of the
         operations are identified as to account classification.

     (h) The separations procedures described in this part are not to be interpreted as indicating what property,
         revenues, expenses and taxes, or what items carried in the income, reserve and retained earnings
         accounts, should or should not be considered in any investigation or rate proceeding.

§ 36.2 Fundamental principles underlying procedures.
     (a) The following general principles underlie the procedures outlined in this part:

          (1) Separations are intended to apportion costs among categories or jurisdictions by actual use or by
              direct assignment.

          (2) Separations are made on the “actual use” basis, which gives consideration to relative occupancy and
              relative time measurements.

          (3) In the development of “actual use” measurements, measurements of use are

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                (i)   determined for telecommunications plant or for work performed by operating forces on a unit
                      basis (e.g., conversation-minute-kilometers per message, weighted standard work seconds per
                      call) in studies of traffic handled or work performed during a representative period for all traffic
                      and

                (ii) applied to overall traffic volumes, i.e., 24-hour rather than busy-hour volumes.

     (b) Underlying the procedures included in this manual for the separation of plant costs is an over-all concept
         which may be described as follows:

          (1) Telecommunications plant, in general, is segregable into two broad classifications, namely,

                (i)   interexchange plant, which is plant used primarily to furnish toll services, and

                (ii) exchange plant, which is plant used primarily to furnish local services.

          (2) Within the interexchange classification, there are three broad types of plant, i.e., operator systems,
              switching plant, and trunk transmission equipment. Within the exchange classification there are four
              board types of plant, i.e., operator systems, switching plant, truck equipment and subscriber plant.
              Subscriber plant comprises lines to the subscriber.

          (3) In general, the basis for apportioning telecommunications plant used jointly for state and interstate
              operations are:

                (i)   Operator work time expressed in weighted standard work seconds is the basis for measuring
                      the use of operator systems.

                (ii) Holding-time-minutes is the basis for measuring the use of local and toll switching plant.

                (iii) Conversation-minute-kilometers or conversation minutes is the basis for measuring the use of
                      interexchange circuit plant and holding-time minutes is the basis for measuring the use of
                      exchange trunk plant. While the use of holding-time-minute-kilometers is the basic fundamental
                      allocation factor for interexchange circuit plant and exchange trunk plant, the use of
                      conversation-minute-kilometers or conversation-minutes for the allocation of interexchange
                      circuit plant and holding-time minutes for the allocation of exchange trunk plant are considered
                      practical approximations for separations between state and interstate operations when related
                      to the broad types of plant classifications used herein.

                (iv) Message telecommunications subscriber plant shall be apportioned on the basis of a Gross
                     Allocator which assigns 25 percent to the interstate jurisdiction and 75 percent to the state
                     jurisdiction.

     (c) Property rented to affiliates, if not substantial in amount, is included as used property of the owning
         company with the associated revenues and expenses treated consistently: Also such property rented
         from affiliates is not included with the used property of the company making the separations; the rent
         paid is included in its expenses. If substantial in amount, the following treatment is applied:

          (1) In the case of property rented to affiliates, the property and related expenses and rent revenues are
              excluded from the telephone operations of the owning company, and

          (2) In the case of property rented from affiliates, the property and related expenses are included with,
              and the rent expenses are excluded from, the telephone operations of the company making the
              separation.

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     (d) Property rented to or from non-affiliates is usually to be included as used property of the owning company
         with the associated revenues and expenses treated consistently. In the event the amount is substantial,
         the property involved and the revenues and expenses associated therewith may be excluded from or
         included in the telecommunications operations of the company. When required, the cost of property
         rented to or from non-affiliates is determined using procedures that are consistent with the procedures for
         the allocation of costs among the operations.

     (e) Costs associated with services or plant billed to another company which have once been separated under
         procedures consistent with general principles set forth in this part, and are thus identifiable as entirely
         interstate or State in nature, shall be directly assigned to the appropriate operation and jurisdiction.

[52 FR 17229, May 6, 1987, as amended at 58 FR 44905, Aug. 25, 1993; 71 FR 65745, Nov. 9, 2006]

§ 36.3 Freezing of jurisdictional separations category relationships and/or allocation factors.
     (a) Effective July 1, 2001, through December 31, 2024, all local exchange carriers subject to part 36 rules
         shall apportion costs to the jurisdictions using their study area and/or exchange specific jurisdictional
         allocation factors calculated during the twelve-month period ending December 31, 2000, for each of the
         categories/sub-categories as specified herein. Direct assignment of private line service costs between
         jurisdictions shall be updated annually. Other direct assignment of investment, expenses, revenues or
         taxes between jurisdictions shall be updated annually. Local exchange carriers that invest in
         telecommunications plant categories during the period July 1, 2001, through December 31, 2024, for
         which it had no separations allocation factors for the twelve-month period ending December 31, 2000,
         shall apportion that investment among the jurisdictions in accordance with the separations procedures in
         effect as of December 31, 2000 for the duration of the freeze.

     (b) Effective July 1, 2001, through December 31, 2024, local exchange carriers subject to price cap regulation,
         pursuant to § 61.41 of this chapter, shall assign costs from the accounts under part 32 of this chapter
         (part 32 account(s)) to the separations categories/sub-categories, as specified herein, based on the
         percentage relationships of the categorized/sub-categorized costs to their associated part 32 accounts
         for the twelve-month period ending December 31, 2000. If a part 32 account for separations purposes is
         categorized into more than one category, the percentage relationship among the categories shall be
         utilized as well. Local exchange carriers that invest in types of telecommunications plant during the
         period July 1, 2001, through December 31, 2024, for which it had no separations category investment for
         the twelve-month period ending December 31, 2000, shall assign such investment to separations
         categories in accordance with the separations procedures in effect as of December 31, 2000. Local
         exchange carriers not subject to price cap regulation, pursuant to § 61.41 of this chapter, may elect to be
         subject to the provisions of this paragraph (b). Such election must be made prior to July 1, 2001. Any local
         exchange carrier that is subject to § 69.3(e) of this chapter and that elected to be subject to this
         paragraph (b) may withdraw from that election by notifying the Commission by May 1, 2019, of its intent
         to withdraw from that election, and that withdrawal will be effective as of July 1, 2019. Any local exchange
         carrier that participates in an Association tariff, pursuant to §§ 69.601 through 69.610 of this chapter, and
         that elected to be subject to this paragraph (b) may withdraw from that election by notifying the
         Association by March 1, 2019, of such intent. Subject to these two exceptions, local exchange carriers
         that previously elected to become subject to this paragraph (b) shall not be eligible to withdraw from such
         regulation for the duration of the freeze.

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     (c) Effective July 1, 2001, through December 31, 2024, any local exchange carrier that sells or otherwise
         transfers exchanges, or parts thereof, to another carrier's study area shall continue to utilize the factors
         and, if applicable, category relationships as specified in paragraphs (a) and (b) of this section.

     (d) Effective July 1, 2001, through December 31, 2024, any local exchange carrier that buys or otherwise
         acquires exchanges or part thereof, shall calculate new, composite factors and, if applicable, category
         relationships based on a weighted average of both the seller's and purchaser's factors and category
         relationships calculated pursuant to paragraphs (a) and (b) of this section. This weighted average should
         be based on the number of access lines currently being served by the acquiring carrier and the number of
         access lines in the acquired exchanges.

          (1) To compute the composite allocation factors and, if applicable, the composite category percentage
              relationships of the acquiring company, the acquiring carrier shall first sum its existing (pre-
              purchase) access lines (A) with the total access lines acquired from selling company (B). Then,
              multiply its factors and category relationship percentages by (A/(A + B)) and those of the selling
              company by (B/(A + B)) and sum the results.

          (2) For carriers subject to a freeze of category relationships, the acquiring carrier should remove all
              categories of investment from the selling carrier's list of frozen category relationships where no such
              category investment exists within the sold exchange(s). The seller's remaining category
              relationships must then be increased proportionately to total 100 percent. Then, the adjusted seller's
              category relationships must be combined with those of the acquiring carrier as specified in §
              36.3(d)(1) to determine the category relationships for the acquiring carrier's post-transfer study area.

     (e) Any local exchange carrier study area converting from average schedule company status, as defined in §
         69.605(c) of this chapter, to cost company status during the period July 1, 2001, through December 31,
         2024, shall, for the first twelve months subsequent to conversion categorize the telecommunications
         plant and expenses and develop separations allocation factors in accordance with the separations
         procedures in effect as of December 31, 2000. Effective July 1, 2001 through December 31, 2024, such
         companies shall utilize the separations allocation factors and account categorization subject to the
         requirements of paragraphs (a) and (b) of this section based on the category relationships and allocation
         factors for the twelve months subsequent to the conversion to cost company status.

[66 FR 33204, June 21, 2001, as amended at 79 FR 36235, June 26, 2014; 84 FR 4360, Feb. 15, 2019]

§ 36.4 Streamlining procedures for processing petitions for waiver of study area boundaries.
Effective January 1, 2012, local exchange carriers seeking a change in study area boundaries shall be subject to the
following procedure:

     (a) Public Notice and Review Period. Upon determination by the Wireline Competition Bureau that a petitioner
         has filed a complete petition for study area waiver and that the petition is appropriate for streamlined
         treatment, the Wireline Competition Bureau will issue a public notice seeking comment on the petition.
         Unless otherwise notified by the Wireline Competition Bureau, the petitioner is permitted to alter its study
         area boundaries on the 60th day after the reply comment due date, but only in accordance with the
         boundary changes proposed in its application.

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     (b) Comment Cycle. Comments on petitions for waiver may be filed during the first 30 days following public
         notice, and reply comments may be filed during the first 45 days following public notice, unless the public
         notice specifies a different pleading cycle. All comments on petitions for waiver shall be filed
         electronically, and shall satisfy such other filing requirements as may be specified in the public notice.

[76 FR 73853, Nov. 29, 2011]

Subpart B—Telecommunications Property

                                                       GENERAL

§ 36.101 Section arrangement.
     (a) This subpart is arranged in sections as follows:

     General
     Telecommunications Plant in Service—Account 2001—36.101 and 36.102.

     General Support Facilities—Account 2110—36.111 and 36.112.

     Central Office Equipment—Accounts 2210, 2220, 2230—36.121 thru 36.126.

     Information Origination/Termination Equipment—Account 2310—36.141 and 36.142.

     Cable and Wire Facilities—Account 2410—36.151 thru 36.157.

     Amortization Assets—Accounts 2680 and 2690—36.161 and 36.162.

     Telecommunications Plant—Other Accounts 2002 thru 2005—36.171.

     Rural Telephone Bank Stock—36.172.

     Material and Supplies—Accounts 1220, and Cash Working Capital—36.181 and 36.182.

     Equal Access Equipment—36.191.

[60 FR 12138, Mar. 6, 1995]

§ 36.102 General.
     (a) This section contains an outline of the procedures used in the assignment of Telecommunications Plant
         in Service—Account 2001 to categories and the apportionment of the cost assigned to each category
         among the operations.

     (b) The treatment of rental plant is outlined in §§ 36.2(c) through 36.2(e). If the amount of such plant is
         substantial, the cost may be determined by using the general procedures set forth for the assignment of
         the various kinds of property to categories.

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     (c) The amount of depreciation deductible from the book cost or “value” is apportioned among the operations
         in proportion to the separation of the cost of the related plant accounts.

                                             GENERAL SUPPORT FACILITIES

§ 36.111 General.
     (a) The costs of the general support facilities are contained in Account 2110, Land and Support Assets. This
         account contains land, buildings, motor vehicles, aircraft, special purpose vehicles, garage work
         equipment, other work equipment, furniture, office equipment and general purpose computers.

§ 36.112 Apportionment procedure.
     (a) The costs of the general support facilities of local exchange carriers that had annual revenues from
         regulated telecommunications operations equal to or greater than $157 million for calendar year 2016 are
         apportioned among the operations on the basis of either the method in paragraph (a)(1) of this section or
         the method in paragraph (a)(2) of this section, at the election of the local exchange carrier:

           (1) The separation of the costs of the combined Big Three Expenses which include the following
               accounts:

                                                     Table 1 to Paragraph (a)(1)

                                                          Plant Specific Expenses
                 Central Office Switching Expenses                                       Account 6210.
                 Operators Systems Expenses                                              Account 6220.
                 Central Office Transmission Expenses                                    Account 6230.
                 Information Origination/Termination Expenses                            Account 6310.
                 Cable and Wire Facilities Expenses                                      Account 6410.
                                                        Plant Non-Specific Expenses
                 Network Operations Expenses                                             Account 6530.
                                                       Customer Operations Expenses
                 Marketing                                                               Account 6610.
                 Services                                                                Account 6620.

           (2) The separation of the costs of Central Office Equipment, Information Origination/Termination
               Equipment, and Cable and Wire Facilities, combined.

     (b) The costs of the general support facilities of local exchange carriers that had annual revenues from
         regulated telecommunications operations less than $157 million for calendar year 2016 are apportioned
         among the operations on the basis of the separation of the costs of Central Office Equipment, Information
         Origination/Termination Equipment, and Cable and Wire Facilities, combined.

[83 FR 63584, Dec. 11, 2018]

                                             CENTRAL OFFICE EQUIPMENT

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§ 36.121 General.
     (a) The costs of central office equipment are carried in the following accounts:

                                               Table 1 to Paragraph (a)

           Central Office Switching                                             Account 2210.
           Operator Systems                                                     Account 2220.
           Central Office Transmission                                          Account 2230.

     (b) Records of the cost of central office equipment are usually maintained for each study area separately by
         accounts. However, each account frequently includes equipment having more than one use. Also,
         equipment in one account frequently is associated closely with equipment in the same building in another
         account. Therefore, the separations procedures for central office equipment have been designed to deal
         with categories of plant rather than with equipment in an account.

     (c) In the separation of the cost of central office equipment among the operations, the first step is the
         assignment of the equipment in each study area to categories. The basic method of making this
         assignment is the identification of the equipment assignable to each category, and the determination of
         the cost of the identified equipment by analysis of accounting, engineering and other records.

          (1) The cost of common equipment not assigned to a specific category, e.g., common power equipment,
              including emergency power equipment, aisle lighting and framework, including distributing frames, is
              distributed among the categories in proportion to the cost of equipment, (excluding power
              equipment not dependent upon common power equipment) directly assigned to categories.

                (i)   The cost of power equipment used by one category is assigned directly to that category, e.g.,
                      130-volt power supply provided for circuit equipment. The cost of emergency power equipment
                      protecting only power equipment used by one category is also assigned directly to that
                      category.

                (ii) Where appropriate, a weighting factor is applied to the cost of circuit equipment in distributing
                     the power plant costs not directly assigned, in order to reflect the generally greater power use
                     per dollar of cost of this equipment.

     (d) The second step is the apportionment of the cost of the equipment in each category among the
         operations through the application of appropriate use factors or by direct assignment.

[52 FR 17229, May 6, 1987, as amended at 69 FR 12549, Mar. 17, 2004; 83 FR 63584, Dec. 11, 2018]

§ 36.122 Categories and apportionment procedures.
     (a) The following categories of central office equipment and apportionment procedures therefore are set
         forth in §§ 36.123 through 36.126.

 Operator Systems Equipment                                                 Category 1.
 Tandem Switching Equipment                                                 Category 2.
 Local Switching Equipment                                                  Category 3.
 Circuit Equipment                                                          Category 4.

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§ 36.123 Operator systems equipment—Category 1.
     (a) Operator systems equipment is contained in Account 2220. It includes all types of manual telephone
         switchboards except tandem switchboards and those used solely for recording of calling telephone
         numbers in connection with customer dialed charge traffic. It includes all face equipment, terminating
         relay circuits of trunk and toll line circuits, cord circuits, cable turning sections, subscriber line equipment,
         associated toll connecting trunk equipment, number checking facilities, ticket distributing systems,
         calculagraphs, chief operator and other desks, operator chairs, and other such equipment.

           (1) Operator systems equipment is generally classified according to operating arrangements of which
               the following are typical:

                 (i)   Separate toll boards

                (ii) Separate local manual boards

                (iii) Combined local manual and toll boards

                (iv) Combined toll and DSA boards

                (v) Separate DSA and DSB boards

                (vi) Service observing boards

                (vii) Auxiliary service boards

                (viii) Traffic service positions

           (2) If switchboards as set forth in § 36.123(a) are of the key pulsing type, the cost of the key pulsing
               senders, link and trunk finder equipment is included with the switchboards.

           (3) DSB boards include the associated DSB dial equipment, such as link and sender equipment.

           (4) Traffic service position systems include the common control and trunk equipment in addition to the
               associated groups of positions wherever located.

           (5) Effective July 1, 2001, through December 31, 2024, study areas subject to price cap regulation,
               pursuant to § 61.41 of this chapter, shall assign the average balance of Account 2220, Operator
               Systems, to the categories/subcategories, as specified in paragraph (a)(1) of this section, based on
               the relative percentage assignment of the average balance of Account 2220 to these categories/
               subcategories during the twelve-month period ending December 31, 2000.

           (6) Effective July 1, 2001 through December 31, 2024, all study areas shall apportion the costs assigned
               to the categories/subcategories, as specified in paragraph (a)(1) of this section, among the
               jurisdictions using the relative use measurements for the twelve-month period ending December 31,
               2000 for each of the categories/subcategories specified in paragraphs (b) through (e) of this
               section.

     (b) The cost of the following operator systems equipment is apportioned among the operations on the basis
         of the relative number of weighted standard work seconds handled at the switchboards under
         consideration.

           (1) The following types of switchboards at toll centers are generally apportioned individually:

                 (i)   Separate toll boards. These usually include outward, through and inward positions in separate
                       lines and associated inward toll switchboard positions in line.

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                (ii) Switchboards handling both local and toll, either combined or having segregated local and toll
                     positions in the same line.

                (iii) Switchboards handling both toll and DSA, either combined or having segregated toll and DSA
                      positions in the same line.

                (iv) Traffic service positions, including separately located groups of these positions when
                     associated with a common basic control unit.

          (2) The following types of switchboards at toll centers are apportioned individually, or by groups of
              comparable types of boards for each exchange:

                (i)   Separate local manual boards. This includes the local positions of manual boards where inward
                      toll positions are in the same line.

                (ii) Separate DSA boards.

                (iii) Separate DSB boards.

          (3) Tributary boards may be treated individually if warranted or they may be treated on a group basis.

     (c) Auxiliary service boards generally handle rate and route, information, and intercept service at individual or
         joint positions. The cost of these boards is apportioned as follows:

          (1) The cost of separate directory assistance boards is apportioned among the operations on the basis
              of the relative number of weighted standard work seconds handled at the boards under
              consideration. Directory assistance weighted standard work seconds are apportioned among the
              operations on the basis of the classification of these weighted standard work seconds as follows:

                (i)   Directory assistance weighted standard work seconds first are classified between calls
                      received over toll directory assistance trunks from operators or customers and all other
                      directory assistance calls.

                (ii) The directory assistance weighted standard work seconds of each type further are classified
                     separately among the operations on the basis of an analysis of a representative sample of
                     directory assistance calls of each type with reference to the locations of the calling and called
                     stations for each call.

          (2) The cost of separate intercept boards and automated intercept systems in the study area is
              apportioned among the operations on the basis of the relative number of subscriber line minutes of
              use.

          (3) The cost of separate rate and route boards is generally included with the cost of the toll boards
              served and is apportioned with those boards.

          (4) Where more than one auxiliary service is handled at an auxiliary board, the cost of the board is
              apportioned among the auxiliary services on the basis of the relative number of weighted standard
              work seconds for each service. The cost of that part of the board allocated to each auxiliary service
              is apportioned among the operations in the same manner as for a separate auxiliary board.

     (d) The cost of joint exchange and toll service observing boards is first apportioned between exchange and
         toll use on the basis of the relative number of exchange and toll service observing units at these boards.
         The cost of separate toll service observing boards and the toll portion of joint service observing boards is
         apportioned between state and interstate operations on the basis of the relative number of toll minutes of
         use associated with the toll messages originating in the offices observed.

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     (e) Traffic Service Position System (TSPS) investments are apportioned as follows:

          (1) Operator position investments are apportioned on the basis of the relative weighted standard work
              seconds for the entire TSPS complex.

          (2) Remote trunk arrangement (RTA) investments are apportioned on the basis of the relative processor
              real time (i.e., actual seconds) required to process TSPS traffic originating from the end offices
              served by each RTA.

          (3) The remaining investments at the central control location, such as the stored program control and
              memory, is apportioned on the basis of the relative processor real time (i.e., actual seconds) for the
              entire TSPS complex.

[52 FR 17229, May 6, 1987, as amended at 66 FR 33205, June 21, 2001; 75 FR 30301, June 1, 2010; 76 FR 30841, May 27, 2011;
79 FR 36236, June 26, 2014]

§ 36.124 Tandem switching equipment—Category 2.
     (a) Tandem switching equipment is contained in Account 2210. It includes all switching equipment in a
         tandem central office, including any associated tandem switchboard positions and any intertoll switching
         equipment. Intertoll switching equipment includes switching equipment used for the interconnection of
         message toll telephone circuits with each other or with local or tandem telephone central office trunks,
         intertoll dial selector equipment, or intertoll trunk equipment in No. 5 type electronic offices. Equipment,
         including switchboards used for recording of calling telephone numbers and other billing information in
         connection with customer dialed charge traffic is included with Local Switching Equipment—Category 3.

          (1) At toll center toll offices, intertoll switching equipment comprises equipment in the toll office used in
              the interconnection of: Toll center to toll center circuits; toll center to tributary circuits; tributary to
              tributary circuits; toll center to tandem circuits or in the interconnection of the aforementioned types
              of circuits with trunks to local offices in the toll center city, i.e., interconnection with toll switching
              trunks, operator trunks, information trunks, testing trunks, etc. Equipment associated with the local
              office end of such trunks is included with local switching equipment or switchboard categories as
              appropriate.

          (2) At tributary offices, this category includes intertoll switching equipment similar to that at toll center
              toll offices if it is used in the interconnection of: Tributary to tributary circuits; tributary to
              subtributary circuits; subtributary to subtributary circuits; toll center to subtributary circuits; or if it is
              used jointly in the interconnection of any of the aforementioned types of circuits and in the
              interconnection of such toll circuits with trunk circuits for the handling of traffic terminating in the
              tributary office. Where comparable equipment has no joint use but is used only for the handling of
              traffic terminating in the tributary office, it is included in the local switching equipment category.

          (3) At all switching entities, this category includes intertoll switching equipment similar to that at toll
              center toll offices if it is used in the interconnection of switched private line trunks or TWX switching
              plant trunks when these functions are in addition to the message telephone switching function.
              Switching entities wholly dedicated to switching of special services are assigned to Category
              3—Local Switching Equipment.

     (b) The costs of central office equipment items assigned this category are to be directly assigned when
         possible. When direct assignment is not possible the costs shall be apportioned among the operations on
         the basis of the relative number of study area minutes of use of this equipment.

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     (c) Effective July 1, 2001, through December 31, 2024, study areas subject to price cap regulation, pursuant to
         § 61.41 of this chapter, shall assign the average balance of Account 2210 to Category 2, Tandem
         Switching Equipment based on the relative percentage assignment of the average balance of Account
         2210 (or, if Accounts 2211, 2212, and 2215 were required to be maintained at the applicable time, the
         average balances of Accounts 2211, 2212, and 2215) to Category 2, Tandem Switching Equipment during
         the twelve-month period ending December 31, 2000.

     (d) Effective July 1, 2001, through December 31, 2024, all study areas shall apportion costs in Category 2,
         Tandem Switching Equipment, among the jurisdictions using the relative number of study area minutes of
         use, as specified in paragraph (b) of this section, for the twelve-month period ending December 31, 2000.
         Direct assignment of any subcategory of Category 2 Tandem Switching Equipment between jurisdictions
         shall be updated annually.

[52 FR 17229, May 6, 1987, as amended at 66 FR 33205, June 21, 2001; 69 FR 12549, Mar. 17, 2004; 75 FR 30301, June 1, 2010;
76 FR 30841, May 27, 2011; 79 FR 36236, June 26, 2014; 83 FR 63584, Dec. 11, 2018]

§ 36.125 Local switching equipment—Category 3.
     (a) Local switching equipment is included in account 2210. It comprises all central office switching
         equipment not assigned other categories. Examples of local switching equipment are basic switching
         train, toll connecting trunk equipment, interlocal trunks, tandem trunks, terminating senders used for toll
         completion, toll completing train, call reverting equipment, weather and time of day service equipment,
         and switching equipment at electronic analog or digital remote line locations. Equipment used for the
         identification, recording and timing of customer dialed charge traffic, or switched private line traffic (e.g.,
         transmitters, recorders, call identity indexers, perforators, ticketers, detectors, mastertimes) switchboards
         used solely for recording of calling telephone numbers in connection with customer dialed charge traffic,
         or switched private line traffic (or both) is included in this local switching category. Equipment provided
         and used primarily for operator dialed toll or customer dialed charge traffic except such equipment
         included in Category 2 Tandem Switching Equipment is also included in this local switching category. This
         includes such items as directors, translators, sender registers, out trunk selectors and facilities for toll
         intercepting and digit absorption. Special services switching equipment which primarily performs the
         switching function for special services (e.g., switching equipment, TWX concentrators and switchboards)
         is also included in this local switching category.

          (1) Local office, as used in § 36.125, comprises one or more local switching entities of the same
              equipment type (e.g., step-by-step, No. 5 Crossbar) in an individual location. A local switching entity
              comprises that local central office equipment of the same type which has a common intermediate
              distributing frame, market group or other separately identifiable switching unit serving one or more
              prefixes (NNX codes).

          (2) A host/remote local switching complex is composed of an electronic analog or digital host office
              and all of its remote locations. A host/remote local switching complex is treated as one local office.
              The current jurisdictional definition of an exchange will apply.

          (3) Dial equipment minutes of use (DEM) is defined as the minutes of holding time of the originating and
              terminating local switching equipment. Holding time is defined in the Glossary.

          (4) The interstate allocation factor is the percentage of local switching investment apportioned to the
              interstate jurisdiction.

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                                                                                                     47 CFR 36.125(a)(5)
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           (5) The interstate DEM factor is the ratio of the interstate DEM to the total DEM. A weighted interstate
               DEM factor is the product of multiplying a weighting factor, as defined in paragraph (f) of this
               section, to the interstate DEM factor. The state DEM factor is the ratio of the state DEM to the total
               DEM.

     (b) Beginning January 1, 1993, Category 3 investment for study areas with 50,000 or more access lines is
         apportioned to the interstate jurisdiction on the basis of the interstate DEM factor. Category 3 investment
         for study areas with 50,000 or more access lines is apportioned to the state jurisdiction on the basis of
         the state DEM factor.

    (c)–(e) [Reserved]

     (f) Beginning January 1, 1998, for study areas with fewer than 50,000 access lines, Category 3 investment is
         apportioned to the interstate jurisdiction by the application of an interstate allocation factor that is the
         lesser of either .85 or the sum of the interstate DEM factor specified in paragraph (a)(5) of this section,
         and the difference between the 1996 interstate DEM factor and the 1996 interstate DEM factor multiplied
         by a weighting factor as determined by the table below. The Category 3 investment that is not assigned to
         the interstate jurisdiction pursuant to this paragraph is assigned to the state jurisdiction.

                                                                                                  Weighting
                              Number of access lines in service in study area
                                                                                                   factor
            0–10,000                                                                                          3.0
            10,001–20,000                                                                                     2.5
            20,001–50,000                                                                                     2.0
            50,001–or above                                                                                   1.0

     (g) For purposes of this section, an access line is a line that does not include WATS access lines, special
         access lines or private lines.

     (h) Effective July 1, 2001, through December 31, 2024, study areas subject to price cap regulation, pursuant to
         § 61.41 of this chapter, shall assign the average balance of Account 2210 to Category 3, Local Switching
         Equipment, based on the relative percentage assignment of the average balance of Account 2210 (or, if
         Accounts 2211, 2212, and 2215 were required to be maintained at the applicable time, the average
         balances of Accounts 2211, 2212, and 2215) to Category 3, during the twelve-month period ending
         December 31, 2000.

     (i)   Effective July 1, 2001, through December 31, 2024, all study areas shall apportion costs in Category 3,
           Local Switching Equipment, among the jurisdictions using relative dial equipment minutes of use for the
           twelve-month period ending December 31, 2000.

     (j)   If the number of a study area's access lines increases such that, under paragraph (f) of this section, the
           weighted interstate DEM factor for 1997 or any successive year would be reduced, that lowered weighted
           interstate DEM factor shall be applied to the study area's 1996 unweighted interstate DEM factor to derive
           a new local switching support factor. If the number of a study area's access lines decreases or has
           decreased such that, under paragraph (f) of this section, the weighted interstate DEM factor for 2010 or
           any successive year would be raised, that higher weighted interstate DEM factor shall be applied to the
           study area's 1996 unweighted interstate DEM factor to derive a new local switching support factor.

47 CFR 36.125(j) (enhanced display)                                                                        page 16 of 58
47 CFR Part 36 (up to date as of 2/20/2024)
                                                                                                               47 CFR 36.126
Jurisdictional Separations Procedures; Standard Procedures for...

[52 FR 17229, May 6, 1987, as amended at 53 FR 33011, 33012, Aug. 29, 1988; 62 FR 32946, June 17, 1997; 63 FR 2124, Jan. 13,
1998; 66 FR 33205, June 21, 2001; 69 FR 12549, Mar. 17, 2004; 71 FR 65745, Nov. 9, 2006; 75 FR 17874, Apr. 8, 2010; 75 FR
30301, June 1, 2010; 76 FR 30841, May 27, 2011; 79 FR 36236, June 26, 2014; 83 FR 63585, Dec. 11, 2018]

§ 36.126 Circuit equipment—Category 4.
     (a) For the purpose of this section, the term “Circuit Equipment” encompasses the Radio Systems and Circuit
         Equipment contained in Account 2230. It includes central office equipment, other than switching
         equipment and automatic message recording equipment, which is used to derive communications
         transmission channels or which is used for the amplification, modulation, regeneration, testing, balancing
         or control of signals transmitted over communications transmission channels. Examples of circuit
         equipment in general use include:

          (1) Carrier telephone system terminals.

          (2) Telephone repeaters, termination sets, impedance compensators, pulse link repeaters, echo
              suppressors and other intermediate transmission amplification and balancing equipment except that
              included in switchboards.

          (3) Radio transmitters, receivers, repeaters and other radio central office equipment except message
              switching equipment associated with radio systems.

          (4) Composite ringers, line signaling and switching pad circuits.

          (5) Concentration equipment.

          (6) Composite sets and repeating coils.

          (7) Program transmission amplifiers, monitoring devices and volume indicators.

          (8) Testboards, test desks, repair desks and patch bays, including those provided for test and control,
              and for transmission testing.

     (b) For apportionment among the operations, the cost of circuit equipment is assigned to the following
         subsidiary categories:

          (1) Exchange Circuit Equipment—Category 4.1.

                (i)   Wideband Exchange Line Circuit Equipment—Category 4.11.

                (ii) Exchange Trunk Circuit Equipment (Wideband and Non-Wideband)—Category 4.12.

                (iii) Exchange Line Circuit Equipment Excluding Wideband—Category 4.13.

          (2) Interexchange Circuit Equipment—Category 4.2.

                (i)   Interexchange Circuit Equipment Furnished to Another Company for Interstate Use—Category
                      4.21.

                (ii) Interexchange Circuit Equipment Used for Wideband Services including Satellite and Earth
                     Station Equipment used for Wideband Service—Category 4.22.

                (iii) All Other Interexchange Circuit Equipment—Category 4.23.

          (3) Host/Remote Message Circuit Equipment—Category 4.3.

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          (4) In addition, for the purpose of identifying and separating property associated with special services,
              circuit equipment included in Categories 4.12 (other than wideband equipment) 4.13 and 4.23 is
              identified as either basic circuit equipment, i.e., equipment that performs functions necessary to
              provide and operate channels suitable for voice transmission (telephone grade channels), or special
              circuit equipment, i.e., equipment that is peculiar to special service circuits. Carrier telephone
              terminals and carrier telephone repeaters are examples of basic circuit equipment in general use,
              while audio program transmission amplifiers, bridges, monitoring devices and volume indicators are
              examples of special circuit equipment in general use. Cost of exchange circuit equipment included in
              Categories 4.12 and 4.13 and the interexchange circuit equipment in Categories 4.21, 4.22 and 4.23
              are segregated between basic circuit equipment and special circuit equipment only at those
              locations where amounts of interexchange and exchange special circuit equipment are significant.
              Where such segregation is not made, the total costs in these categories are classified as basic
              circuit equipment.

          (5) Effective July 1, 2001, through December 31, 2024, study areas subject to price cap regulation,
              pursuant to § 61.41, shall assign the average balance of Account 2230 to the categories/
              subcategories as specified in § 36.126(b)(1) through (b)(4) based on the relative percentage
              assignment of the average balance of Account 2230 (or, if Accounts 2231 and 2232 were required to
              be maintained at the applicable time, the average balances of Accounts 2231 and 2232) costs to
              these categories/subcategories during the twelve-month period ending December 31, 2000.

          (6) Effective July 1, 2001, through December 31, 2024, study areas subject to price cap regulation,
              pursuant to § 61.41 of this chapter, shall assign the average balance of Account 2230 to the
              categories/subcategories as specified in paragraphs (b)(1) through (4) of this section based on the
              relative percentage assignment of the average balance of Account 2230 (or, if Accounts 2231 and
              2232 were required to be maintained at the applicable time, the average balances of Accounts 2231
              and 2232) costs to these categories/subcategories during the twelve-month period ending
              December 31, 2000.

     (c) Apportionment of Exchange Circuit Equipment Among the Operations:

          (1) Wideband Exchange Line Circuit Equipment—Category 4.11—The cost of exchange circuit equipment
              in this category is determined separately for each wideband facility. The respective costs are
              allocated to the appropriate operation in the same manner as the related exchange line cable and
              wire facilities described in § 36.155.

          (2) Exchange Trunk Circuit Equipment (Wideband and Non-Wideband)—Category 4.12—The cost of
              exchange circuit equipment associated with this category for the study area is allocated to the
              appropriate operation in the same manner as the related exchange trunk cable and wire facilities as
              described in § 36.155.

          (3) Exchange Line Circuit Equipment Excluding Wideband—Category 4.13—The cost of Circuit
              Equipment associated with exchange line plant excluding wideband for the study area is assigned to
              subcategories and is allocated to the appropriate operation in the same manner as the related
              exchange line cable and wire facilities for non-wideband service as described in § 36.154.

          (4) Effective July 1, 2001, through December 31, 2024, all study areas shall apportion costs in the
              categories/subcategories, as specified in paragraphs (b)(1) through (4) of this section, among the
              jurisdictions using the relative use measurements or factors, as specified in paragraphs (c)(1)

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                                                                                                         47 CFR 36.126(d)
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                through (3) of this section for the twelve-month period ending December 31, 2000. Direct
                assignment of any subcategory of Category 4.1 Exchange Circuit Equipment to the jurisdictions shall
                be updated annually.

     (d) Apportionment of Interexchange Circuit Equipment among the Operations: Procedures to be Used by
         Interexchange Carriers.

          (1) Interexchange Circuit Equipment Furnished to Another Company for Interstate Use—Category
              4.21—This category comprises that circuit equipment provided for the use of another company as an
              integral part of its interexchange circuit facilities used wholly for interstate services. This category
              includes such circuit equipment as telephone carrier terminals and microwave systems used wholly
              for interstate services. The total cost of the circuit equipment in this category for the study area is
              assigned to the interstate operation.

          (2) Interexchange Circuit Equipment Used for Wideband Service—Category 4.22—This category includes
              the circuit equipment portion of interexchange channels used for wideband services. The cost of
              interexchange circuit equipment in this category is determined separately for each wideband
              channel and is segregated between message and private line services on the basis of the use of the
              channels provided. The respective costs are allocated to the appropriate operation in the same
              manner as the related interexchange cable and wire facilities as described in § 36.156.

          (3) All Other Interexchange Circuit Equipment—Category 4.23—This category includes the cost of all
              interexchange circuit equipment not assigned to Categories 4.21 and 4.22. Interexchange carriers
              shall freeze the allocation factors for Category 4.23 investment at levels reached on December 31,
              1985, derived by using the procedures in effect at that time. On January 1, 1988, and thereafter, that
              frozen allocation factor shall be applied to each interexchange carrier's Category 4.23 investment to
              derive the interstate allocation. On January 1, 1988, and thereafter, the amount of investment
              allocated to the interstate jurisdiction will vary but the relative proportion of the total investment that
              is allocated to the interstate jurisdiction will remain frozen at 1985 levels.

     (e) Apportionment of Interexchange Circuit Equipment among the Operations: Procedures To Be Used by
         Exchange Carriers.

          (1) Interexchange Circuit Equipment Furnished to Another Company for Interstate Use
              Category—4.21—This category comprises that circuit equipment provided for the use of another
              company as an integral part of its interexchange circuit facilities used wholly for interstate services.
              This category includes such circuit equipment as telephone carrier terminals and microwave
              systems used wholly for interstate services. The total cost of the circuit equipment in this category
              for the study area is assigned to the interstate operation.

          (2) Interexchange Circuit Equipment Used for Wideband Service—Category 4.22—This category includes
              the circuit equipment portion of interexchange channels used for wideband services. The cost of
              interexchange circuit equipment in this category is determined separately for each wideband
              channel and is segregated between message and private line services on the basis of the use of the
              channels provided. The respective costs are allocated to the appropriate operation in the same
              manner as the related interexchange cable and wire facilities described in § 36.156.

          (3) All Other Interexchange Circuit Equipment—Category 4.23—This category includes the cost of all
              interexchange circuit equipment not assigned to Categories 4.21 and 4.22. The cost of
              interexchange basic circuit equipment used for the following classes of circuits is included in this

47 CFR 36.126(e)(3) (enhanced display)                                                                       page 19 of 58
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                                                                                                         47 CFR 36.126(e)(3)(i)
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                category: Jointly used message circuits, i.e., message switching plant circuits carrying messages
                from the state and interstate operations; circuits used for state private line service; and circuits used
                for state private line services.

                 (i)   An average interexchange circuit equipment cost per equivalent interexchange telephone
                       termination for all circuits is determined and applied to the equivalent interexchange telephone
                       termination counts of each of the following classes of circuits: Private Line, State Private Line,
                       Message. The cost of interstate private line circuits is assigned directly to the interstate
                       operation. The cost of state private line circuits is assigned directly to the state operation. The
                       cost of message circuits is apportioned between the state and interstate operations on the
                       basis of the relative number of study area conversation-minutes applicable to such facilities.

                (ii) [Reserved]

                (iii) The cost of special circuit equipment is segregated among private line services based on an
                      analysis of the use of the equipment and in accordance with § 36.126(b)(4). The special circuit
                      equipment cost assigned to private line services is directly assigned to the appropriate
                      operations.

           (4) Effective July 1, 2001, through December 31, 2024, all study areas shall apportion costs in the
               categories/subcategories specified in paragraphs (e)(1) through (3) of this section among the
               jurisdictions using relative use measurements or factors, as specified in paragraphs (e)(1) through
               (3) for the twelve-month period ending December 31, 2000. Direct assignment of any subcategory of
               Category 4.2 Interexchange Circuit Equipment to the jurisdictions shall be updated annually.

     (f) Apportionment of Host/Remote Message Circuit Equipment Among the Operations.

           (1) Host/Remote Message Circuit Equipment—Category 4.3. This category includes message host/
               remote location circuit equipment for which a message circuit switching function is performed at the
               host central office associated with cable and wire facilities as described in § 36.152(c).

                 (i)   The category 4.3 cost of host/remote circuit equipment assigned to message services for the
                       study area is apportioned among the exchange, intrastate toll, and interstate toll operations on
                       the basis of the assignment of host/remote message cable and wire facilities as described in §
                       36.157.

                (ii) [Reserved]

           (2) Effective July 1, 2001, through December 31, 2024, all study areas shall apportion costs in the
               subcategory specified in paragraph (f)(1) of this section among the jurisdictions using the allocation
               factor, as specified in paragraph (f)(1)(i) of this section, for this subcategory for the twelve-month
               period ending December 31, 2000. Direct assignment of any Category 4.3 Host/Remote Message
               Circuit Equipment to the jurisdictions shall be updated annually.

[52 FR 17229, May 6, 1987, as amended at 53 FR 33012 Aug. 29, 1988; 66 FR 33205, June 21, 2001; 69 FR 12550, Mar. 17, 2004;
71 FR 65745, Nov. 9, 2006; 75 FR 30301, June 1, 2010; 76 FR 30841, May 27, 2011; 79 FR 36236, June 26, 2014; 82 FR 48776, Oct.
20, 2017; 83 FR 63585, Dec. 11, 2018; 84 FR 4360, Feb. 15, 2019]

                             INFORMATION ORIGINATION/TERMINATION (IOT) EQUIPMENT

47 CFR 36.126(f)(2) (enhanced display)                                                                           page 20 of 58
47 CFR Part 36 (up to date as of 2/20/2024)
                                                                                                                47 CFR 36.141
Jurisdictional Separations Procedures; Standard Procedures for...

§ 36.141 General.
     (a) Information Origination/Termination Equipment is maintained in Account 2310 and includes station
         apparatus, embedded customer premises wiring, large private branch exchanges, public telephone
         terminal equipment, and other terminal equipment.

     (b) The costs in Account 2310 shall be segregated between Other Information Origination/Termination
         Equipment—Category 1, and New Customer Premises Equipment—Category 2 by an analysis of
         accounting, engineering and other records.

     (c) Effective July 1, 2001, through December 31, 2024, local exchange carriers subject to price cap regulation,
         pursuant to § 61.41 of this chapter, shall assign the average balance of Account 2310 to the categories,
         as specified in paragraph (b) of this section, based on the relative percentage assignment of the average
         balance of Account 2310 to these categories during the twelve-month period ending December 31, 2000.

[52 FR 17229, May 6, 1987, as amended at 66 FR 33206, June 21, 2001; 75 FR 30301, June 1, 2010; 76 FR 30841, May 27, 2011;
79 FR 36237, June 26, 2014]

§ 36.142 Categories and apportionment procedures.
     (a) Other Information Origination/Termination Equipment—Category 1. This category includes the cost of
         other information origination/termination equipment not assigned to Category 2. The costs of other
         information origination/termination equipment are allocated pursuant to the factor that is used to allocate
         subcategory 1.3 Exchange Line C&WF.

     (b) Customer Premises Equipment—Category 2. This category includes the cost of Customer Premises
         Equipment that was detariffed pursuant to the Second Computer Inquiry decision. It shall be assigned to
         the state operations.

     (c) Effective July 1, 2001, through December 31, 2024, all study areas shall apportion costs in the categories,
         as specified in § 36.141(b), among the jurisdictions using the relative use measurements or factors, as
         specified in paragraph (a) of this section, for the twelve-month period ending December 31, 2000. Direct
         assignment of any category of Information Origination/Termination Equipment to the jurisdictions shall
         be updated annually.

[52 FR 17229, May 6, 1987, as amended at 66 FR 33206, June 21, 2001; 71 FR 65746, Nov. 9, 2006; 75 FR 30301, June 1, 2010; 76
FR 30841, May 27, 2011; 79 FR 36237, June 26, 2014]

                                              CABLE AND WIRE FACILITIES

§ 36.151 General.
     (a) Cable and Wire Facilities, Account 2410, includes the following types of communications plant in service:
         Poles and antenna supporting structures, aerial cable, underground cable, buried cable, submarine cable,
         deep sea cable, intrabuilding network cable, aerial wire and conduit systems.

     (b) For separations purposes, it is necessary to analyze the cable and wire facilities classified in subordinate
         records in order to determine their assignment to the categories listed in the following paragraphs.

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     (c) In the separation of the cost of cable and wire facilities among the operations, the first step is the
         assignment of the facilities to certain categories. The basic method of making this assignment is the
         identification of the facilities assignable to each category and the determination of the cost of the
         facilities so identified. Because of variations among companies in the character of the facilities and
         operating conditions, and in the accounting and engineering records maintained, the detailed methods
         followed, of necessity, will vary among the companies. The general principles to be followed, however, will
         be the same for all companies.

     (d) The second step is the apportionment of the cost of the facilities in each category among the operations
         through the application of appropriate factors or by direct assignment.

§ 36.152 Categories of Cable and Wire Facilities (C&WF).
     (a) C&WF are basically divided between exchange and interexchange. Exchange C&WF consists of the
         following categories:

          (1) Exchange Line C&WF Excluding Wideband—Category 1—This category includes C&W facilities
              between local central offices and subscriber premises used for message telephone, private line,
              local channels, and for circuits between control terminals and radio stations providing very high
              frequency maritime service or urban or highway mobile service.

          (2) Wideband and Exchange Trunk C&WF—Category 2—This category includes all wideband, including
              Exchange Line Wideband and C&WF between local central offices and Wideband facilities. It also
              includes C&WF between central offices or other switching points used by any common carrier for
              interlocal trunks wholly within an exchange or metropolitan service area, interlocal trunks with one or
              both terminals outside a metropolitan service area carrying some exchange traffic, toll connecting
              trunks, tandem trunks principally carrying exchange traffic, the exchange trunk portion of WATS
              access lines, the exchange trunk portion of private line local channels, and the exchange trunk
              portion of circuits between control terminals and radio stations providing very high frequency
              maritime service or urban or highway mobile service.

          (3) The procedures for apportioning the cost of exchange cable and wire facilities among the operations
              are set forth in §§ 36.154 and 36.155.

     (b) Interexchange C&WF—Category 3—This category includes the C&WF used for message toll and toll private
         line services. It includes cable and wire facilities carrying intertoll circuits, tributary circuits, the
         interexchange channel portion of special service circuits, circuits between control terminals and radio
         stations used for overseas or coastal harbor service, interlocal trunks between offices in the different
         exchange or metropolitan service areas carrying only message toll traffic and certain tandem trunks
         which carry principally message toll traffic.

          (1) The procedures for apportioning the cost of interexchange cable and wire facilities among the
              operations are set forth in § 36.156.

     (c) Host/Remote Message C&WF—Category 4—This category includes the cost of message host/remote
         location C&WF for which a message circuit switching function is performed at the host central office. It
         applies to C&WF between host offices and all remote locations. The procedures for apportioning the cost
         of these facilities among the operations are set forth in § 36.157.

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     (d) Effective July 1, 2001, through December 31, 2024, study areas subject to price cap regulation, pursuant to
         § 61.41 of this chapter, shall assign the average balance of Account 2410 to the categories/
         subcategories, as specified in paragraph (a) through (c) of this section based on the relative percentage
         assignment of the average balance of Account 2410 to these categories/subcategories during the twelve-
         month period ending December 31, 2000.

[52 FR 17229, May 6, 1987, as amended at 66 FR 33206, June 21, 2001; 71 FR 65746, Nov. 9, 2006; 75 FR 30301, June 1, 2010; 76
FR 30841, May 27, 2011; 79 FR 36237, June 26, 2014]

§ 36.153 Assignment of Cable and Wire Facilities (C&WF) to categories.
     (a) Cable consists of: Aerial cable, underground cable, buried cable, submarine cable, deep sea cable and
         intrabuilding network cable. Where an entire cable or aerial wire is assignable to one category, its cost and
         quantity are, where practicable, directly assigned.

           (1) Cable.

                 (i)   There are two basic methods for assigning the cost of cable to the various categories. Both of
                       them are on the basis of conductor cross section. The methods are as follows:

                       (A) By section of cable, uniform as to makeup and relative use by categories. From an analysis
                           of cable engineering and assignment records, determine in terms of equivalent gauge the
                           number of pairs in use or reserved, for each category. The corresponding percentages of
                           use, or reservation, are applied to the cost of the section of cable, i.e., sheath meters times
                           unit cost per meter, to obtain the cost assignable to each category.

                       (B) By using equivalent pair kilometers, i.e., pair kilometers expressed in terms of equivalent
                           gauge. From an analysis of cable engineering and assignment records, determine the
                           equivalent pair kilometers in use for each category by type of facility, e.g., quadded, paired.
                           The equivalent pair kilometers are then divided by a cable fill factor to obtain the
                           equivalent pair kilometers in plant. The total equivalent pair kilometers in plant assigned to
                           each category is summarized by type of facility, e.g., quadded and paired, and priced at
                           appropriate average unit costs per equivalent pair kilometer in plant. If desired, this study
                           may be made in terms of circuit kilometers rather than physical pair kilometers, with
                           average cost and fill data consistent with the basis of the facilities kilometer count.

                 (ii) In the assignment of the cost of cable under the two basic methods described in §
                      36.153(a)(1)(i) consideration is given to the following:

                       (A) Method (A) described in § 36.153(a)(1)(i)(A) will probably be found more desirable where
                           there is a relatively small amount of cable of variable make-up and use by categories.
                           Conversely, method (B) described in § 36.153(a)(1)(i)(B) will probably be more desirable
                           where there is a large amount of cable of variable make-up and use by categories.
                           However, in some cases a combination of both methods may be desirable.

                       (B) It will be desirable in some cases to determine the amount assignable to a particular
                           category by deducting from the total the sum of the amounts assigned to all other
                           categories.

                       (C) For use in the assignment of poles to categories, the equivalent sheath kilometers of aerial
                           cable assigned to each category are determined. For convenience, these quantities are
                           determined in connection with assignment of cable costs.

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                      (D) Where an entire cable is assignable to one category, its costs and quantity are, where
                          practicable, directly assigned.

                (iii) For cables especially arranged for high-frequency transmission such as shielded, disc-insulated
                      and coaxial, recognition is given to the additional costs which are charged to the high-frequency
                      complement.

           (2) Cable Loading.

                (i)   Methods for assigning the cost of loading coils, cases, etc., to categories are comparable with
                      those used in assigning the associated cable to categories. Loading associated with cable
                      which is directly assigned to a given category is also directly assigned. The remaining loading
                      is assigned to categories in either of the following bases:

                      (A) By an analysis of the use made of the loading facilities where a loading coil case includes
                          coils assignable to more than one category, e.g., in the case of a single gauge uniformly
                          loaded section, the percentage used in the related cable assignment are applicable, or

                      (B) By pricing out each category by determining the pair meters of loaded pairs assigned to
                          each category and multiplying by the unit cost per pair meter of loading by type.

           (3) Other Cable Plant.

                (i)   In view of the small amounts involved, the cost of all protected terminals and gas pressure
                      contactor terminals in the toll cable subaccounts is assigned to the appropriate Interexchange
                      Cable & Wire Facilities categories. The cost of all other terminals in the exchange and toll cable
                      subaccounts is assigned to Exchange Cable and Wire Facilities.

     (b) Aerial Wire.

           (1) The cost of wire accounted for as exchange is assigned to the appropriate Exchange Cable & Wire
               Facilities categories. The cost of wire accounted for as toll, which is used for exchange, is also
               assigned to the appropriate Exchange Cable & Wire Facilities categories. The cost of the remaining
               wire accounted for as toll is assigned to the appropriate Interexchange Cable & Wire Facilities
               categories as described in § 36.156. For companies not maintaining exchange and toll subaccounts,
               it is necessary to review the plant records and identify wire plant by use. The cost of wire used for
               providing circuits directly assignable to a category is assigned to that category. The cost of wire
               used for providing circuit facilities jointly used for exchange and interexchange lines is assigned to
               categories on the basis of the relative number of circuit kilometers involved.

     (c) Poles and Antenna Supporting Structures.

           (1) In the assignment of these costs, anchors, guys, crossarms, antenna supporting structure, and right-
               of-way are included with the poles.

           (2) Poles. (i) The cost of poles is assigned to categories based on the ratio of the cost of poles to the
               total cost of aerial wire and aerial cable.

     (d) Conduit Systems.

           (1) The cost of conduit systems is assigned to categories on the basis of the assignment of the cost of
               underground cable.

[53 FR 17229, May 6, 1987, as amended at 53 FR 33012, Aug. 29, 1988; 58 FR 44905, Aug. 25, 1993]

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§ 36.154 Exchange Line Cable and Wire Facilities (C&WF)—Category 1—apportionment
procedures.
     (a) Exchange Line C&WF—Category 1. The first step in apportioning the cost of exchange line cable and wire
         facilities among the operations is the determination of an average cost per working loop. This average
         cost per working loop is determined by dividing the total cost of exchange line cable and wire Category 1
         in the study area by the sum of the working loops described in subcategories listed below. The
         subcategories are:

          Subcategory 1.1—State Private Lines and State WATS Lines. This subcategory shall include all private
          lines and WATS lines carrying exclusively state traffic as well as private lines and WATS lines carrying both
          state and interstate traffic if the interstate traffic on the line involved constitutes ten percent or less of the
          total traffic on the line.

          Subcategory 1.2—Interstate private lines and interstate WATS lines. This subcategory shall include all
          private lines and WATS lines that carry exclusively interstate traffic as well as private lines and WATS lines
          carrying both state and interstate traffic if the interstate traffic on the line involved constitutes more than
          ten percent of the total traffic on the line.

          Subcategory 1.3—Subscriber or common lines that are jointly used for local exchange service and
          exchange access for state and interstate interexchange services.

     (b) The costs assigned to subcategories 1.1 and 1.2 shall be directly assigned to the appropriate jurisdiction.

     (c) Effective January 1, 1986, 25 percent of the costs assigned to subcategory 1.3 shall be allocated to the
         interstate jurisdiction.

    (d)–(f) [Reserved]

     (g) Effective July 1, 2001, through December 31, 2024, all study areas shall apportion Subcategory 1.3
         Exchange Line C&WF among the jurisdictions as specified in paragraph (c) of this section. Direct
         assignment of subcategory Categories 1.1 and 1.2 Exchange Line C&WF to the jurisdictions shall be
         updated annually as specified in paragraph (b) of this section.

[52 FR 17229, May 6, 1987, as amended at 53 FR 33012, Aug. 29, 1988; 54 FR 31033, July 26, 1989; 66 FR 33206, June 21, 2001;
67 FR 17014, Apr. 9, 2002; 71 FR 65746, Nov. 9, 2006; 75 FR 30301, June 1, 2010; 76 FR 30841, May 27, 2011; 79 FR 36237, June
26, 2014; 83 FR 63585, Dec. 11, 2018]

§ 36.155 Wideband and exchange trunk (C&WF)—Category 2—apportionment procedures.
     (a) The cost of C&WF applicable to this category shall be directly assigned where feasible. If direct
         assignment is not feasible, cost shall be apportioned between the state and interstate jurisdictions on the
         basis of the relative number of minutes of use.

     (b) Effective July 1, 2001, through December 31, 2024, all study areas shall apportion Category 2 Wideband
         and exchange trunk C&WF among the jurisdictions using the relative number of minutes of use, as
         specified in paragraph (a) of this section, for the twelve-month period ending December 31, 2000. Direct
         assignment of any Category 2 equipment to the jurisdictions shall be updated annually.

[52 FR 17229, May 6, 1987, as amended at 66 FR 33206, June 21, 2001; 75 FR 30301, June 1, 2010; 76 FR 30841, May 27, 2011;
79 FR 36237, June 26, 2014]

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§ 36.156 Interexchange Cable and Wire Facilities (C&WF)—Category 3—apportionment
procedures.
     (a) An average interexchange cable and wire facilities cost per equivalent interexchange telephone circuit
         kilometer for all circuits in Category 3 is determined and applied to the equivalent interexchange
         telephone circuit kilometer counts of each of the classes of circuits.

     (b) The cost of C&WF applicable to this category shall be directly assigned where feasible. If direct
         assignment is not feasible, cost shall be apportioned between the state and interstate jurisdiction on the
         basis of conversation-minute kilometers as applied to toll message circuits, etc.

     (c) Effective July 1, 2001, through December 31, 2024, all study areas shall directly assign Category 3
         Interexchange Cable and Wire Facilities C&WF where feasible. All study areas shall apportion the non-
         directly assigned costs in Category 3 equipment to the jurisdictions using the relative use measurements,
         as specified in paragraph (b) of this section, during the twelve-month period ending December 31, 2000.

[58 FR 44905, Aug. 25, 1993, as amended at 66 FR 33206, June 21, 2001; 71 FR 65746, Nov. 9, 2006; 75 FR 30301, June 1, 2010;
76 FR 30841, May 27, 2011; 79 FR 36237, June 26, 2014]

§ 36.157 Host/remote message Cable and Wire Facilities (C&WF)—Category 4—apportionment
procedures.
     (a) Host/Remote Message C&WF—Category 4. The cost of host/remote C&WF used for message circuits, i.e.,
         circuits carrying only message traffic, is included in this category.

           (1) The cost of host/remote message C&WF excluding WATS closed end access lines for the study area
               is apportioned on the basis of the relative number of study area minutes-of-use kilometers
               applicable to such facilities.

           (2) The cost of host/remote message C&WF used for WATS closed end access for the study area is
               directly assigned to the appropriate jurisdiction.

     (b) Effective July 1, 2001, through December 31, 2024, all study areas shall apportion Category 4 Host/
         Remote message Cable and Wire Facilities C&WF among the jurisdictions using the relative number of
         study area minutes-of-use kilometers applicable to such facilities, as specified in paragraph (a)(1) of this
         section, for the twelve-month period ending December 31, 2000. Direct assignment of any Category 4
         equipment to the jurisdictions shall be updated annually.

[52 FR 17229, May 6, 1987, as amended at 58 FR 44905, Aug. 25, 1993; 66 FR 33206, June 21, 2001; 75 FR 30301, June 1, 2010;
76 FR 30841, May 27, 2011; 79 FR 36237, June 26, 2014]

                                                  AMORTIZABLE ASSETS

§ 36.161 Tangible assets—Account 2680.
     (a) Tangible Assets, Account 2680 includes the costs of property acquired under capital leases and the
         original cost of leasehold improvements.

     (b) The costs of capital leases are apportioned among the operations based on similar plant owned or by
         analysis.

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     (c) The cost of leasehold improvements are apportioned among the operations in direct proportion to the
         costs of the related primary account.

§ 36.162 Intangible assets—Account 2690.
     (a) Intangible Assets, Account 2690 includes the costs of organizing and incorporating the company,
         franchises, patent rights, and other intangible property having a life of more than one year.

     (b) The amount included in this account is apportioned among the operations on the basis of the separation
         of the cost of Telecommunications Plant In Service, Account 2001, excluding the Intangible Assets,
         Account 2690.

                                        TELECOMMUNICATIONS PLANT—OTHER

§ 36.171 Property held for future telecommunications use—Account 2002; Telecommunications
plant under construction—Account 2003; and Telecommunications plant adjustment—Account
2005.
The amounts carried in Accounts 2002, 2003, and 2005 are apportioned among the operations on the basis of the
apportionment of Account 2001, Telecommunications Plant in Service.

[60 FR 12138, Mar. 6, 1995]

                                           RURAL TELEPHONE BANK STOCK

§ 36.172 Other noncurrent assets—Account 1410.
     (a) The amounts carried in this account shall be separated into subsidiary record categories:

           (1) Class B RTB Stock and

           (2) All other.

     (b) The amounts contained in category (2) all other of § 36.172(a)(2), shall be excluded from part 36
         jurisdictional separations.

     (c) The amounts contained in category (1) Class B RTB stock of § 36.172(a)(1), shall be allocated based on
         the relative separations of Account 2001, Telephone Plant in Service.

[52 FR 17229, May 6, 1987, as amended at 53 FR 33012, Aug. 29, 1988]

                               MATERIAL AND SUPPLIES AND CASH WORKING CAPITAL

§ 36.181 Material and supplies—Account 1220.
     (a) The amount included in Account 1220 is apportioned among the operations on the basis of the
         apportionment of the cost of cable and wire facilities in service. Any amounts included in Account 1220
         associated with the Customer Premises portion of Account 2310 equipment, shall be excluded from the
         amounts which are allocated to the interstate operation.

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§ 36.182 Cash working capital.
     (a) The amount for cash working capital, if not determined directly for a particular operation, is apportioned
         among the operations on the basis of total expenses less non-cash expense items.

                                               EQUAL ACCESS EQUIPMENT

§ 36.191 Equal access equipment.
     (a) Equal access investment includes only initial incremental expenditures for hardware and other equipment
         related directly to the provision of equal access which would not be required to upgrade the capabilities of
         the office involved absent the provision of equal access. Equal access investment is limited to such
         expenditures for converting central offices which serve competitive interexchange carriers or where there
         has been a bona fide request for conversion to equal access.

     (b) Equal access investment is first segregated from all other amounts in the primary accounts.

     (c) The equal access investment determined in this manner is allocated between the jurisdictions on the
         basis of relative state and interstate equal access traffic including interstate interLATA equal access
         traffic, intrastate interLATA equal access traffic, and BOC interstate corridor toll traffic as well as AT&T
         and OCC intraLATA equal access usage. Local exchange traffic and BOC intraLATA toll traffic is excluded.
         In the case of independent telephone companies, intrastate toll service provided by the independent local
         exchange company is excluded in determining intrastate usage, but intrastate toll service provided by long
         distance carriers affiliated with the local exchange company is included.

     (d) Effective July 1, 2001, through December 31, 2024, all study areas shall apportion Equal Access
         Equipment, as specified in paragraph (a) of this section, among the jurisdictions using the relative state
         and interstate equal access traffic, as specified in paragraph (c) of this section, for the twelve-month
         period ending December 31, 2000.

[52 FR 17229, May 6, 1987, as amended at 53 FR 33012, Aug. 29, 1988; 66 FR 33206, June 21, 2001; 75 FR 30301, June 1, 2010;
76 FR 30841, May 27, 2011; 79 FR 36237, June 26, 2014]

Subpart C—Operating Revenues and Certain Income Accounts

                                                         GENERAL

§ 36.201 Section arrangement.
This subpart is arranged in sections as follows:

 General                                                                                           36.202
 Operating Revenues                                                                                36.211
    Basic local services revenue—Account 5000                                                      36.212
    Network Access Revenues—Accounts 5081 thru 5083                                                36.213
    Long Distance Message Revenue—Account 5100                                                     36.214
    Miscellaneous Revenue—Account 5200                                                             36.215
    Uncollectible Revenue—Account 5300                                                             36.216

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 Certain Income Accounts:
    Other Operating Income and Expenses—Account 7100                                            36.221
    Nonoperating Income and Expenses—Account 7300                                               36.222
    Interest and Related Items—Account 7500                                                     36.223
    Extraordinary Items—Account 7600                                                            36.224
    Income Effect of Jurisdictional Ratemaking Differences—Account 7910                         36.225

[69 FR 12550, Mar. 17, 2004, as amended at 83 FR 63585, Dec. 11, 2018]

§ 36.202 General.
     (a) This section sets forth procedures for the apportionment among the operations of operating revenues and
         certain income and expense accounts.

     (b) Except for the Network Access Revenues, subsidiary record categories are maintained for all revenue
         accounts in accordance with the requirements of part 32. These subsidiary records identify services for
         the appropriate jurisdiction and will be used in conjunction with apportionment procedures stated in this
         manual.

[52 FR 17299, May 6, 1987, as amended at 69 FR 12550, Mar. 17, 2004]

                                                 OPERATING REVENUES

§ 36.211 General.
Operating revenues are included in the following accounts:

                                Account title                                     Account No.
 Basic Local Service Revenue                                                                     5000
 Network Access Revenues:
    End User Revenue                                                                             5081
    Switched Access Revenue                                                                      5082
    Special Access Revenue                                                                       5083
    Long Distance Message Revenue                                                                5100
    Miscellaneous Revenue                                                                        5200
    Uncollectible Revenue                                                                        5300

[69 FR 12550, Mar. 17, 2004, as amended at 83 FR 63585, Dec. 11, 2018]

§ 36.212 Basic local services revenue—Account 5000.
     (a) Local private line revenues from broadcast program transmission audio services and broadcast program
         transmission video services are assigned to the interstate operation.

     (b) Revenues that are attributable to the origination or termination of interstate FX or CCSA like services shall
         be assigned to the interstate jurisdiction.

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     (c) Wideband Message Service revenues from monthly and miscellaneous charges, service connections,
         move and change charges, are apportioned between state and interstate operations on the basis of the
         relative number of minutes-of-use in the study area. Effective July 1, 2001, through December 31, 2024, all
         study areas shall apportion Wideband Message Service revenues among the jurisdictions using the
         relative number of minutes of use for the twelve-month period ending December 31, 2000.

     (d) All other revenues in this account are assigned to the exchange operation based on their subsidiary record
         categories or on the basis of analysis and studies.

[52 FR 17229, May 6, 1987, as amended at 66 FR 33206, June 21, 2001; 71 FR 65746, Nov. 9, 2006; 75 FR 30301, June 1, 2010; 76
FR 30841, May 27, 2011; 79 FR 36237, June 26, 2014]

§ 36.213 Network access services revenues.
     (a) End User Revenue—Account 5081. Revenues in this account are directly assigned on the basis of analysis
         and studies.

     (b) Switched Access Revenue—Account 5082. Revenues in this account are directly assigned on the basis of
         analysis and studies.

     (c) Special Access Revenue—Account 5083. Revenues in this account are directly assigned on the basis of
         analysis and studies.

[52 FR 17299, May 6, 1987, as amended at 69 FR 12550, Mar. 17, 2004]

§ 36.214 Long distance message revenue—Account 5100.
     (a) Wideband message service revenues from monthly and miscellaneous charges, service connections,
         move and change charges, are apportioned between state and interstate operations on the basis of the
         relative number of minutes-of-use in the study area. Effective July 1, 2001, through December 31, 2024, all
         study areas shall apportion Wideband Message Service revenues among the jurisdictions using the
         relative number of minutes of use for the twelve-month period ending December 31, 2000.

     (b) Long Distance private line service revenues from broadcast program transmission audio services and
         broadcast program transmission video services are assigned to the interstate operation.

     (c) All other revenues in this account are directly assigned based on their subsidiary record categories or on
         the basis of analysis and studies.

[52 FR 17229, May 6, 1987, as amended at 66 FR 33206, June 21, 2001; 71 FR 65746, Nov. 9, 2006; 75 FR 30301, June 1, 2010; 76
FR 30841, May 27, 2011; 79 FR 36237, June 26, 2014]

§ 36.215 Miscellaneous revenue—Account 5200.
     (a) Directory revenues are assigned to the exchange operation.

     (b) Billing and collection revenues are assigned on the basis of services being provided.

     (c) All other revenues are apportioned on the basis of analysis.

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§ 36.216 Uncollectible revenue—Account 5300.
The amounts in this account are apportioned among the operations on the basis of analysis during a representative
period of the portion of Account 1171, Allowance for doubtful accounts, related to telecommunications billing.

[69 FR 12551, Mar. 17, 2004]

                                              CERTAIN INCOME ACCOUNTS

§ 36.221 Other operating income and expenses—Account 7100.
     (a) Amounts relating to translation in foreign exchange differentials are assigned to the interstate operations.

     (b) All other amounts are apportioned based on Telecommunications Plant in Service, Account 2001, if plant
         related, or on the nature of the item reflected in the account, if not plant related.

§ 36.222 Nonoperating income and expenses—Account 7300.
     (a) Only allowance for funds used during construction, and charitable, social and community welfare
         contributions are considered in this account for separations purposes.

     (b) Subsidiary record categories should be maintained for this account that include identification of amounts
         made to the account for

           (1) credits representing allowance for funds used during construction and

           (2) contributions for charitable, social or community welfare purposes, employee activities, membership
               dues and fees in service clubs, community welfare association and similar organizations.

     (c) The portion reflecting allowance for funds used during construction is apportioned on the basis of the
         cost of Telecommunications Plant Under Construction—Account 2003. The portion reflecting costs for
         social and community welfare contributions and fees is apportioned on the basis of the apportionment of
         corporate operations expenses.

[52 FR 17229, May 6, 1987, as amended at 60 FR 12138, Mar. 6, 1995]

§ 36.223 Interest and related items—Account 7500.
     (a) Only interest paid relating to capital leases is considered in this account for separations purposes.
         Subsidiary Record Categories should be maintained for this account that include details relating to
         interest expense on capital leases. Such interest expense is apportioned on a basis consistent with the
         associated capital leases in Account 2680.

§ 36.224 Extraordinary items—Account 7600.
     (a) Amounts in this account of an operating nature are apportioned on a basis consistent with the nature of
         these items.

§ 36.225 Income effect of jurisdictional ratemaking differences—Account 7910.
     (a) Amounts in this account are directly assigned to the appropriate jurisdiction.

Subpart D—Operating Expenses and Taxes

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                                                           GENERAL

§ 36.301 Section arrangement.
This subpart is arranged in sections as follows:

 General                                                                 36.301 and
                                                                         36.302.
 Plant Specific Operations Expenses:
    General                                                              36.310.
    Network Support/General Support Expenses—Accounts 6110 and 6120      36.311.
    Central Office Expenses—Accounts 6210, 6220, 6230                    36.321.
    Information Origination/Termination Expenses—Account 6310            36.331.
    Cable and Wire Facilities Expenses—Account 6410                      36.341.
 Plant Nonspecific Operations Expenses:
    General                                                              36.351.
    Other Property Plant and Equipment Expenses—Account 6510             36.352.
    Network Operations Expenses—Account 6530                             36.353.
    Access Expenses—Account 6540                                         36.354.
    Depreciation and Amortization Expenses—Account 6560                  36.361.
 Customer Operations Expenses:
    General                                                              36.371.
    Marketing—Account 6610                                               36.372.
    Services—Account 6620                                                36.373.
    Telephone Operator Services                                          36.374.
    Published Directory Listing                                          36.375.
    All Other                                                            36.376.
    Category 1—Local Bus. Office Expense                                 36.377.
    Category 2—Customer Services (Revenue Accounting)                    36.378.
    Message Processing Expense                                           36.379.
    Other Billing and Collecting Expense                                 36.380.
    Carrier Access Charge Billing and Collecting Expense                 36.381.
    Category 3—All other Customer Service Expense                        36.382.
 Corporate Operations Expenses:
    General                                                              36.391.
    General and Administrative Expenses—Account 6720                     36.392.
    Operating Taxes—Account 7200                                         36.411 and 36.412.
    Equal Access Expenses                                                36.421.

[69 FR 12551, Mar. 17, 2004, as amended at 83 FR 63585, Dec. 11, 2018]

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§ 36.302 General.
     (a) This section sets forth procedures for the apportionment among the operations of operating expenses
         and operating taxes.

     (b) As covered in § 36.2 (c) and (d), the treatment of expenses relating to plant furnished to and obtained
         from others under rental arrangements is consistent with the treatment of such plant.

     (c) In accordance with requirements in part 32 § 32.5999 (f) expenses recorded in the expense accounts are
         segregated in the accounting process among the following subsidiary record categories as appropriate to
         each account:

     Salaries and Wages

     Benefits

     Rents

     Other Expenses

     Clearances

          (1) Subsidiary Record Categories (SRCs) for Salaries and Wages, Benefits and Other Expenses are
              applicable to all of the expense accounts except for:

                  (i)   SRCs for access expenses are maintained to identify interstate and state access expense and
                        billing and collection expense for carrier's carrier.

                 (ii) Depreciation and Amortization Expense SRCs identify the character of the items contained in
                      the account.

          (2) SRCs for Rents and Clearance are only applicable to the Plant Specific Operating Expense accounts
              6110 thru 6410.

[52 FR 17229, May 6, 1987, as amended at 83 FR 63586, Dec. 11, 2018]

                                        PLANT SPECIFIC OPERATIONS EXPENSES

§ 36.310 General.
     (a) Plant specific operations expenses include the following accounts:

                                                 Table 1 to Paragraph (a)

             Network Support Expenses                                                  Account 6110.
             General Support Expenses                                                  Account 6120.
             Central Office Switching Expenses                                         Account 6210.
             Operator System Expenses                                                  Account 6220.
             Central Office Transmission Expenses                                      Account 6230.

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           Information Origination/Termination Expenses                                     Account 6310.
           Cable and Wire Facilities Expenses                                               Account 6410.

     (b) These accounts are used to record costs related to specific kinds of telecommunications plant and
         predominantly mirror the telecommunications plant in service detail accounts. Accordingly, these expense
         accounts will generally be apportioned in the same manner as the related plant accounts.

     (c) Except where property obtained from or furnished to other companies is treated as owned property by the
         company making the separation, and the related operating rents are excluded from the separation studies
         as set forth in § 36.2 (c) and (d), amounts are apportioned among the operations on bases generally
         consistent with the treatment prescribed for similar plant costs and consistent with the relative
         magnitude of the items involved.

[52 FR 17229, May 6, 1987, as amended at 53 FR 33012, Aug. 29, 1988; 69 FR 12551, Mar. 17, 2004; 83 FR 63586, Dec. 11, 2018]

                                  NETWORK SUPPORT/GENERAL SUPPORT EXPENSES

§ 36.311 Network Support/General Support Expenses—Accounts 6110 and 6120.
     (a) Network Support Expenses are expenses associated with motor vehicles, aircraft, special purpose
         vehicles, garage work equipment, and other work equipment. General Support Expenses are expenses
         associated with land and buildings, furniture and artworks, office equipment, and general purpose
         computers.

     (b) The expenses in these account are apportioned among the operations on the basis of the separation of
         account 2110, Land and Support Assets.

                                                CENTRAL OFFICE EXPENSES

§ 36.321 Central office expenses—Accounts 6210, 6220, and 6230.
     (a) The expenses related to central office equipment are summarized in the following accounts:

                                                Table 1 to Paragraph (a)

           Central Office Switching Expense                                            Account 6210.
           Operator Systems Expense                                                    Account 6220.
           Central Office Transmission Expense                                         Account 6230.

     (b) The expenses in these accounts are apportioned among the operations on the basis of the separation of
         the investments in central office equipment—Accounts 2210, 2220 and 2230, combined.

[52 FR 17229, May 6, 1987, as amended at 69 FR 12552, Mar. 17, 2004; 83 FR 63586, Dec. 11, 2018]

                                INFORMATION ORIGINATION/TERMINATION EXPENSES

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§ 36.331 Information origination/termination expenses—Account 6310.
     (a) The expenses in this account are classified as follows:

           (1) Other Information Origination/Termination Equipment Expenses; Customer Premises Equipment
               Expenses

           (2) For some companies, these classifications are available from accounting records; for others, they are
               obtained by means of analyses of plant, accounting or other records for a representative period.

     (b) Other Information Origination/Termination Equipment Expenses include all expenses not associated with
         Customer Premises Equipment expenses. These expenses shall be apportioned between state and
         interstate operations in accordance with the apportionment of the related investment as per § 36.142(a).

     (c) Expenses related to Customer Premises Equipment shall be assigned to the state operations.

[52 FR 17229, May 6, 1987, as amended at 53 FR 33012, Aug. 29, 1988]

                                        CABLE AND WIRE FACILITIES EXPENSES

§ 36.341 Cable and wire facilities expenses—Account 6410.
     (a) This account includes the expenses for poles, antenna supporting structures, aerial cable, underground
         cable, buried cable, submarine cable, deep sea cable, intrabuilding network cable, aerial wire, and conduit
         systems.

     (b) The general method of separating cable and wire facilities expenses amoung the operations is to assign
         them on the basis of Account 2410—Cable and Wire Facilities.

                                      PLANT NONSPECIFIC OPERATIONS EXPENSES

§ 36.351 General.
Plant nonspecific operations expenses include the following accounts:

                                       Table 1 to § 36.351

 Other Property Plant and Equipment Expenses                               Account 6510.
 Network Operations Expenses                                               Account 6530.
 Access Expenses                                                           Account 6540.
 Depreciation and Amortization Expenses                                    Account 6560.

[83 FR 63586, Dec. 11, 2018]

                                               PLANT EXPENSES—OTHER

§ 36.352 Other property plant and equipment expenses—Account 6510.
     (a) This account is used to record the expenses associated with

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             (1) property held for future telecommunications use and

             (2) the provisioning of material and supplies.

     (b) The expenses in this account are apportioned among the operations based on the separation of Account
         2001—Telecommunications Plant in Service.

                                           NETWORK OPERATIONS EXPENSES

§ 36.353 Network operations expenses—Account 6530.
     (a) This account includes the expenses associated with the provisions of power, network administration,
         testing, plant operations administration, and engineering.

     (b) The expenses in this account are apportioned among the operations based on the separations of Account
         2210, Central Office Switching, Account 2220 Operator Systems, Account 2230 Central Office
         Transmission, Account 2310, Information Origination/Termination and Account 2410, Cable and Wire
         Facilities, Combined.

§ 36.354 Access expenses—Account 6540.
     (a) This account includes access charges paid to exchange carriers for exchange access service. These are
         directly assigned to the appropriate jurisdiction based on subsidiary record categories or on analysis and
         study.

                                    DEPRECIATION AND AMORTIZATION EXPENSES

§ 36.361 Depreciation and amortization expenses—Account 6560.
     (a) This account includes the depreciation expenses for telecommunications plant in service and for property
         held for future telecommunications use. It also includes the amortization expense for tangible and
         intangible asserts.

     (b) Expenses recorded in this account shall be separated on the basis of the separation of the associated
         primary Plant Accounts or related categories.

                                          CUSTOMER OPERATIONS EXPENSES

§ 36.371 General.
Customer Operations Expenses are included in the following accounts:

 Marketing                                    Account 6610.
 Services                                     Account 6620.

[69 FR 12552, Mar. 17, 2004, as amended at 83 FR 63587, Dec. 11, 2018]

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§ 36.372 Marketing—Account 6610.
The expenses in this account are apportioned among the operations on the basis of an analysis of current billing for
a representative period, excluding current billing on behalf of others and billing in connection with intercompany
settlements. Effective July 1, 2001, through December 31, 2024, all study areas shall apportion expenses in this
account among the jurisdictions using the analysis during the twelve-month period ending December 31, 2000.

[79 FR 36238, June 26, 2014]

§ 36.373 Services—Account 6620.
     (a) For apportionment purposes, the expenses in this account are first segregated on the basis of an analysis
         of job functions into the following classifications: Telephone operator services: publishing directory
         listing; and all other.

          (1) Expenses may be apportioned among the operations for groups of exchanges. A group of exchanges
              may include all exchanges in the study area.

§ 36.374 Telephone operator services.
     (a) Expenses in this classification include costs incurred for operators in call completion service and number
         services. This includes intercept, quoting rates, directory information, time charges, and all other operator
         functions performed in the central office, private branch exchange, teletypewriter exchange, and at public
         telephone stations.

     (b) Effective July 1, 2001, through December 31, 2024, study areas subject to price cap regulation, pursuant to
         § 61.41 of this chapter, shall assign the balance of Account 6620-Services to the Telephone operator
         expense classification based on the relative percentage assignment of the balance of Account 6620 to
         this classification during the twelve-month period ending December 31, 2000.

     (c) Expenses in this classification are apportioned among the operations on the basis of the relative number
         of weighted standard work seconds as determined by analysis and study for a representative period.

     (d) Effective July 1, 2001, through December 31, 2024, all study areas shall apportion Telephone operator
         expenses among the jurisdictions using the relative number of weighted standard work seconds, as
         specified in paragraph (c) of this section, during the twelve-month period ending December 31, 2000.

[52 FR 17229, May 6, 1987, as amended at 66 FR 33207, June 21, 2001; 75 FR 30301, June 1, 2010; 76 FR 30841, May 27, 2011;
79 FR 36238, June 26, 2014]

§ 36.375 Published directory listing.
     (a) This classification includes expenses for preparing or purchasing, compiling and disseminating directory
         listings.

     (b) Published directory expense is assigned as follows:

          (1) Classified directory expense and all expense of soliciting advertising is assigned to the exchange
              operation.

          (2) The expense of alphabetical and street address directories and traffic information records is
              apportioned among the operations on the basis of the relative number of study area subscriber line
              minutes-of-use applicable to each operation.

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           (3) The expense associated with directories and traffic information records prepared for one locality and
               used in another locality is known as “foreign directories expense.” Such expense is assigned to the
               appropriate operation on the basis of the location of the point where used with respect to the locality
               for which the directories and records were prepared.

           (4) Effective July 1, 2001, through December 31, 2024, study areas subject to price cap regulation,
               pursuant to § 61.41 of this chapter, shall assign the balance of Account 6620-Services to the
               classifications, as specified in paragraphs (b)(1) through (3) of this section, based on the relative
               percentage assignment of the balance of Account 6620 to these classifications during the twelve-
               month period ending December 31, 2000.

           (5) Effective July 1, 2001, through December 31, 2024, all study areas shall apportion Published
               directory listing expenses using the underlying relative use measurements, as specified in
               paragraphs (b)(1) through (3) of this section, during the twelve-month period ending December 31,
               2000. Direct assignment of any Publishing directory listing expense to the jurisdictions shall be
               updated annually.

[52 FR 17229, May 6, 1987, as amended at 66 FR 33207, June 21, 2001; 71 FR 65746, Nov. 9, 2006; 75 FR 30301, June 1, 2010; 76
FR 30841, May 27, 2011; 79 FR 36238, June 26, 2014; 83 FR 63587, Dec. 11, 2018]

§ 36.376 All other.
     (a) For apportionment purposes this classification must be divided into three categories:

           (1) Category 1—Local Business Office Expense.

           (2) Category 2—Customer Services Expense.

           (3) Category 3—All Other Customer Services Expense.

§ 36.377 Category 1—Local business office expense.
     (a) The expense in this category for the area under study is first segregated on the basis of an analysis of job
         functions into the following subcategories: End user service order processing; end user payment and
         collection; end user billing inquiry; interexchange carrier service order processing; interexchange carrier
         payment and collection; interexchange carrier billing inquiry; and coin collection and administration.
         Effective July 1, 2001, through December 31, 2024, study areas subject to price cap regulation, pursuant
         to § 61.41 of this chapter, shall assign the balance of Account 6620-Services to the subcategories, as
         specified in this paragraph (a), based on the relative percentage assignment of the balance of Account
         6620 to these categories/subcategories during the twelve-month period ending December 31, 2000.

           (1) End-user service order processing includes expenses related to the receipt and processing of end
               users' orders for service and inquiries concerning service. This subcategory does not include any
               service order processing expenses for services provided to the interexchange carriers. End user
               service order processing expenses are first segregated into the following subcategories based on
               the relative number of actual contacts which are weighted, if appropriate, to reflect differences in the
               average work time per contact: Local service order processing; presubscription; directory
               advertising; State private line and special access; interstate private line and special access; other
               State message toll including WATS; other interstate message toll including WATS.

                 (i)   Local service order processing expense (primarily local telephone service orders) is assigned to
                       the State jurisdiction.

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                (ii) Presubscription service order processing expense is assigned to the interstate jurisdiction.

                (iii) Directory advertising service order processing expense is assigned to the State jurisdiction.

                (iv) State private line and special access service order processing expense is assigned to the State
                     jurisdiction.

                (v) Interstate private line and special access service order processing expense is assigned to the
                    interstate jurisdiction.

                (vi) Other State message toll including WATS service order processing expense is assigned to the
                     State jurisdiction.

                (vii) Other Interstate message toll including WATS service order processing expense is assigned to
                      the interstate jurisdiction.

               (viii) [Reserved]

                (ix) Effective July 1, 2001, through December 31, 2024, study areas subject to price cap regulation,
                     pursuant to § 61.41 of this chapter, shall assign the balance of Account 6620-Services to the
                     categories/subcategories, as specified in paragraphs (a)(1)(i) through (viii) of this section,
                     based on the relative percentage assignment of the balance of Account 6620 to these
                     categories/subcategories during the twelve-month period ending December 31, 2000. Effective
                     July 1, 2001, through December 31, 2024, all study areas shall apportion TWX service order
                     processing expense, as specified in paragraph (a)(1)(viii) of this section among the
                     jurisdictions using relative billed TWX revenues for the twelve-month period ending December
                     31, 2000. All other subcategories of End-user service order processing expense, as specified in
                     paragraphs (a)(1)(i) through (viii) shall be directly assigned.

          (2) End user payment and collection includes expenses incurred in relation to the payment and
              collection of amounts billed to end users. It also includes commissions paid to payment agencies
              (which receive payment on customer accounts) and collection agencies. This category does not
              include any payment or collection expenses for services provided to interexchange carriers. End user
              payment and collection expenses are first segregated into the following subcategories based on
              relative total state and interstate billed revenues (excluding revenues billed to interexchange carriers
              and/or revenues deposited in coin boxes) for services for which end user payment and collection is
              provided: State private line and special access; interstate private line and special access; State
              message toll including WATS; interstate message toll including WATS, and interstate subscriber line
              charge; local, including directory advertising.

                (i)   State private line and special access payment and collection expense is assigned to the State
                      jurisdiction.

                (ii) Interstate private line and special access payment and collection expense is assigned to the
                     interstate jurisdiction.

                (iii) State message toll including WATS payment and collection expense is assigned to the State
                      jurisdiction.

                (iv) Interstate message toll including WATS and interstate subscriber line charge payment and
                     collection expense is assigned to the interstate jurisdiction.

                (v) Local, including directory advertising payment and collection expense is assigned to the State
                    jurisdiction.

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                (vi) [Reserved]

                (vii) Effective July 1, 2001, through December 31, 2024, study areas subject to price cap regulation,
                      pursuant to § 61.41 of this chapter, shall assign the balance of Account 6620-Services to the
                      subcategories, as specified in paragraphs (a)(2)(i) through (vi) of this section, based on the
                      relative percentage assignment of the balance of Account 6620 to these categories/
                      subcategories during the twelve-month period ending December 31, 2000. All other
                      subcategories of End User payment and collection expense, as specified in paragraphs (a)(2)(i)
                      through (v) of this section, shall be directly assigned.

           (3) End user billing inquiry includes expenses related to handling end users' inquiries concerning their
               bills. This category does not include expenses related to the inquiries of interexchange carriers
               concerning their bills. End user billing inquiry costs are first segregated into the following
               subcategories based on the relative number of actual contracts, weighted if appropriate, to reflect
               differences in the average work time per contact: State private line and special access; interstate
               private line and special access; State message toll including WATS, interstate message toll including
               WATS, interstate subscriber line charge; and other.

                 (i)   State private line and special access billing inquiry expense is directly assigned to the State
                       jurisdiction.

                (ii) Interstate private line and special access billing inquiry expense is directly assigned to the
                     interstate jurisdiction.

                (iii) State message toll including WATS billing inquiry expense is directly assigned to the State
                      jurisdiction.

                (iv) Interstate message toll including WATS, and interstate subscriber line charge billing inquiry
                     expense is directly assigned to the interstate jurisdiction.

                (v) [Reserved]

                (vi) Other billing inquiry expense (primarily related to local bills but also including directory
                     advertising) is directly assigned to the State jurisdiction.

                (vii) Effective July 1, 2001, through December 31, 2024, study areas subject to price cap regulation,
                      pursuant to § 61.41 of this chapter, shall assign the balance of Account 6620-Services to the
                      subcategories, as specified in paragraphs (a)(3)(i) through (vi) of this section, based on the
                      relative percentage assignment of the balance of Account 6620 to these subcategories during
                      the twelve-month period ending December 31, 2000. All other subcategories of End user billing
                      inquiry expense, as specified in paragraphs (a)(2)(i) through (vi) shall be directly assigned.

           (4) Interexchange carrier service order processing includes expenses associated with the receipt and
               processing of interexchange carrier orders for service and inquiries about service. Interexchange
               carrier service order processing expenses are assigned to the following subcategories based on the
               relative number of actual contacts which are weighted, if appropriate, to reflect differences in the
               average work time per contact: State special access and private line; interstate special access and
               private line; State switched access and message toll including WATS; interstate switched access and
               message toll including WATS; State billing and collection; and interstate billing and collection.

                 (i)   State special access and private line service order processing expense is directly assigned to
                       the State jurisdiction.

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                (ii) Interstate special access and private line service order processing expense is directly assigned
                     to the interstate jurisdiction.

                (iii) State switched access and message toll including WATS service order processing expense is
                      directly assigned to the State jurisdiction.

                (iv) Interstate switched access and message toll including WATS service order processing expense
                     is directly assigned to the interstate jurisdiction.

                (v) State billing and collection service order processing expense is directly assigned to the state
                    jurisdiction.

                (vi) Interstate billing and collection service order processing expense is directly assigned to the
                     interstate jurisdiction.

                (vii) Effective July 1, 2001, through December 31, 2024, study areas subject to price cap regulation,
                      pursuant to § 61.41 of this chapter, shall assign the balance of Account 6620-Services to the
                      subcategories, as specified in paragraphs (a)(4)(i) through (vi) of this section, based on the
                      relative percentage assignment of the balance of Account 6620 to these subcategories during
                      the twelve-month period ending December 31, 2000. All subcategories of Interexchange carrier
                      service order processing expense, as specified in paragraphs (a)(2)(i) through (vi), shall be
                      directly assigned.

           (5) Interexchange carrier payment and collection includes expenses associated with the payment and
               collection of interexchange carrier billings, including commissions paid to payment and collection
               agents. Interexchange carrier payment and collection expenses are assigned to the following
               subcategories based on relative total State and interstate revenues billed to the interexchange
               carriers: State special access and private line; interstate special access and private line; State
               switched access and message toll including WATS; interstate switched access and message toll
               including WATS; State billing and collection; and interstate billing and collection.

                 (i)   State special access and private line payment and collection expense is directly assigned to the
                       State jurisdiction.

                (ii) Interstate special access and private line payment and collection expense is directly assigned
                     to the interstate jurisdiction.

                (iii) State switched access and message toll including WATS payment and collection expense is
                      directly assigned to the State jurisdiction.

                (iv) Interstate switched access and message toll including WATS payment and collection expense
                     is directly assigned to the interstate jurisdiction.

                (v) State billing and collection payment and collection expense is directly assigned to the State
                    jurisdiction.

                (vi) Interstate billing and collection payment and collection expense is directly assigned to the
                     interstate jurisdiction.

                (vii) Effective July 1, 2001, through December 31, 2024, study areas subject to price cap regulation,
                      pursuant to § 61.41 of this chapter, shall assign the balance of Account 6620-Services to the
                      subcategories, as specified in paragraphs (a)(5)(i) through (vi) of this section, based on the

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                      relative percentage assignment of the balance of Account 6620 to these subcategories during
                      the twelve-month period ending December 31, 2000. All subcategories of Interexchange carrier
                      payment expense, as specified in paragraphs (a)(2)(i) through (vi) shall be directly assigned.

          (6) Interexchange carrier billing inquiry includes expenses related to the handling of interexchange
              carrier billing inquiries. Interexchange carrier billing inquiry expenses are assigned to the following
              subcategories based on the relative number of actual contacts, weighted if appropriate, to reflect
              differences in the average work time per contact: State special access and private line; interstate
              special access and private line; State switched access and message toll including WATS; interstate
              switched access and message toll including WATS; State billing and collection; and interstate billing
              and collection.

                (i)   State special access and private line billing inquiry expenses is directly assigned to the State
                      jurisdiction.

                (ii) Interstate special access and private line billing inquiry expense is directly assigned to the
                     interstate jurisdiction.

                (iii) State switched access and message toll including WATS billing inquiry expense is directly
                      assigned to the State jurisdiction.

                (iv) Interstate switched access and message toll including WATS billing inquiry expense is directly
                     assigned to the interstate jurisdiction.

                (v) State billing and collection billing inquiry expense is directly assigned to the State jurisdiction.

                (vi) Interstate Billing and Collection billing inquiry expense is directly assigned to the interstate
                     jurisdiction.

                (vii) Effective July 1, 2001, through December 31, 2024, study areas subject to price cap regulation,
                      pursuant to § 61.41 of this chapter, shall assign the balance of Account 6620-Services to the
                      subcategories, as specified in paragraphs (a)(6)(i) through (vi) of this section, based on the
                      relative percentage assignment of the balance of Account 6620 to these subcategories during
                      the twelve-month period ending December 31, 2000. All subcategories of Interexchange carrier
                      billing inquiry expense, as specified in paragraphs (a)(2)(i) through (vi), shall be directly
                      assigned.

          (7) [Reserved]

     (b) [Reserved]

[52 FR 17229, May 6, 1987, as amended at 66 FR 33207, June 21, 2001; 71 FR 65746, Nov. 9, 2006; 75 FR 30301, June 1, 2010; 76
FR 30841, May 27, 2011; 79 FR 36238, June 26, 2014; 83 FR 63587, Dec. 11, 2018]

§ 36.378 Category 2—Customer services (revenue accounting).
     (a) The Revenue Accounting proportion of Account 6620 expenses comprise the salaries and other expenses
         in Account 6620 directly assignable or allocable to the billing of customers and the accounting for
         revenues, including the supervision of such work.

     (b) Revenue Accounting expenses for the study area are separated on the basis of a Job Function analysis
         into three main classifications: Message processing expense, other billing and collecting expense, and
         carrier access charge billing and collecting expense.

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          (1) Effective July 1, 2001, through December 31, 2024, study areas subject to price cap regulation,
              pursuant to § 61.41 of this chapter, shall assign the balance of Account 6620-Services to the
              classifications, as specified in paragraph (b) of this section, based on the relative percentage
              assignment of the balance of Account 6620 to those classifications during the twelve-month period
              ending December 31, 2000.

          (2) [Reserved]

     (c) The term “ticket” denotes either a ticket prepared manually by an operator or the mechanized equivalent
         of such a ticket processed by the revenue accounting office.

[52 FR 17229, May 6, 1987, as amended at 66 FR 33208, June 21, 2001; 75 FR 30301, June 1, 2010; 76 FR 30841, May 27, 2011;
79 FR 36239, June 26, 2014]

§ 36.379 Message processing expense.
     (a) This classification includes the salary and machine expense of data processing equipment, including
         supervision, general accounting administrative and miscellaneous expense associated with the
         processing of individual toll tickets and local message tickets.

     (b) The expense assigned to this classification is divided into the subcategories Toll Ticket Processing
         Expense and Local Message Processing Expense on the basis of the relative number of messages. Toll
         Ticket Processing Expense is allocated between the State and interstate jurisdiction on the basis of the
         relative number of toll messages. Local Message Processing Expense is assigned to the exchange
         operation.

          (1) Effective July 1, 2001, through December 31, 2024, study areas subject to price cap regulation,
              pursuant to § 61.41 of this chapter, shall assign the balance of Account 6620-Services to the
              subcategories, as specified in this paragraph (b), based on the relative percentage assignment of the
              balance of Account 6620 to those subcategories during the twelve-month period ending December
              31, 2000.

          (2) Effective July 1, 2001, through December 31, 2024, all study areas shall apportion Toll Ticketing
              Processing Expense among the jurisdictions using the relative number of toll messages for the
              twelve-month period ending December 31, 2000. Local Message Process Expense is assigned to the
              state jurisdiction.

[52 FR 17229, May 6, 1987, as amended at 66 FR 33208, June 21, 2001; 75 FR 30301, June 1, 2010; 76 FR 30841, May 27, 2011;
79 FR 36239, June 26, 2014]

§ 36.380 Other billing and collecting expense.
     (a) This classification includes the salary expense, including supervision, general accounting administrative,
         and miscellaneous expense, associated with the preparation of customer bills other than carrier access
         charge bills and with other revenue accounting functions not covered in § 36.379. Included in this
         classification are the expenses incurred in the preparation of monthly bills, initial and final bills, the
         application of service orders to billing records (establishing, changing, or discontinuing customers'
         accounts), station statistical work, controlling record work and the preparation of revenue reports.

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     (b) Local exchange carriers that bill or collect from end users on behalf of interexchange carriers shall
         allocate one third of the expenses assigned this classification to the interstate jurisdiction, and two thirds
         of the expenses assigned this classification to the state jurisdiction.

     (c) Local exchange carriers that do not bill or collect from end users on behalf of interexchange carriers shall
         allocate five percent of the expenses assigned this classification to the interstate jurisdiction, and ninety-
         five percent of the expenses assigned this classification to the state jurisdiction.

     (d) Effective July 1, 2001, through December 31, 2024, study areas subject to price cap regulation, pursuant to
         § 61.41 of this chapter, shall assign the balance of Account 6620-Services to the Other billing and
         collecting expense classification based on the relative percentage assignment of the balance of Account
         6620 to those subcategory during the twelve-month period ending December 31, 2000.

     (e) Effective July 1, 2001, through December 31, 2024, all study areas shall apportion Other billing and
         collecting expense among the jurisdictions using the allocation factor utilized, pursuant to paragraph (b)
         or (c) of this section, for the twelve-month period ending December 31, 2000.

[53 FR 33011, Aug. 29, 1988, as amended at 62 FR 15416, Apr. 1, 1997; 66 FR 33208, June 21, 2001; 75 FR 30301, June 1, 2010;
76 FR 30841, May 27, 2011; 79 FR 36239, June 26, 2014]

§ 36.381 Carrier access charge billing and collecting expense.
     (a) This classification includes the revenue accounting functions associated with the billing and collecting of
         access charges to interexchange carriers.

     (b) Of access charges other than end user common line access charges are assessed for the origination or
         termination of intrastate services in a particular state, one-half of such expense shall be apportioned to
         interstate operations. If no such access charges are assessed in a particular state, all such expense shall
         be assigned to interstate operations.

     (c) Effective July 1, 2001, through December 31, 2024, study areas subject to price cap regulation, pursuant to
         § 61.41 of this chapter, shall assign the balance of Account 6620-Services to the Carrier access charge
         billing and collecting expense classification based on the relative percentage assignment of the balance
         of Account 6620 to that classification during the twelve-month period ending December 31, 2000.

     (d) Effective July 1, 2001, through December 31, 2024, all study areas shall apportion Carrier access charge
         billing and collecting expense among the jurisdictions using the allocation factor, pursuant to paragraph
         (b) of this section, for the twelve-month period ending December 31, 2000.

[52 FR 17229, May 6, 1987, as amended at 66 FR 33208, June 21, 2001; 75 FR 30301, June 1, 2010; 76 FR 30841, May 27, 2011;
79 FR 36239, June 26, 2014]

§ 36.382 Category 3—All other customer services expense.
     (a) Effective July 1, 2001, through December 31, 2024, study areas subject to price cap regulation, pursuant to
         § 61.41 of this chapter, shall assign the balance of Account 6620-Services to this category based on the
         relative percentage assignment of the balance of Account 6620 to this category during the twelve-month
         period ending December 31, 2000.

     (b) Category 3 is apportioned on the basis of Categories 1 and 2.

[66 FR 33208, June 21, 2001, as amended at 75 FR 30301, June 1, 2010; 76 FR 30841, May 27, 2011; 79 FR 36239, June 26, 2014]

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                                           CORPORATE OPERATIONS EXPENSE

§ 36.391 General.
Corporate Operations Expenses are included in the following account:

 General and Administrative                                           Account 6720.

[69 FR 12552, Mar. 17, 2004]

§ 36.392 General and administrative—Account 6720.
     (a) These expenses are divided into two categories:

             (1) Extended Area Services (EAS).

             (2) All other.

     (b) Extended Area Services (EAS) settlements are directly assigned to the exchange operation.

     (c) The expenses in this account are apportioned among the operations on the basis of the separation of the
         cost of the combined Big Three Expenses which include the following accounts:

                                      Table 1 to Paragraph (c)

                                          Plant Specific Expenses
 Central Office Switching Expenses                                               Account 6210.
 Operators Systems Expenses                                                      Account 6220.
 Central Office Transmission Expenses                                            Account 6230.
 Information Origination/Termination Expenses                                    Account 6310.
 Cable and Wire Facilities Expense                                               Account 6410.
                                        Plant Non-Specific Expenses
 Network Operations Expenses                                                     Account 6530.
                                      Customer Operations Expenses
 Marketing                                                                       Account 6610.
 Services                                                                        Account 6620.

[52 FR 17229, May 6, 1987, as amended at 69 FR 12552, Mar. 17, 2004; 83 FR 63587, Dec. 11, 2018]

                                                    OPERATING TAXES

§ 36.411 Operating taxes—Account 7200.
This account includes the taxes arising from the operations of the company, i.e.:

     (a) Operating Investment Tax Credits.

     (b) Operating Federal Income Taxes.

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     (c) Operating State and Local Income Taxes.

     (d) Operating Other Taxes.

     (e) Provision for Deferred Operating Income Taxes.

[83 FR 63587, Dec. 11, 2018]

§ 36.412 Apportionment procedures.
     (a) For apportionment purposes, the expenses in this account are segregated into two groups as follows:

           (1) Operating Federal, State and local income taxes and

           (2) all other operating taxes.

     (b) Operating Federal, State and local income taxes are apportioned among the operations on the basis of the
         approximate net taxable income (positive or negative) applicable to each of the operations. The
         approximate net taxable income from each of the operations is the summation of the following amounts
         apportioned to each operation by means of the procedures set forth in this Manual:

           (1) Operating revenues,

           (2) Less operating expenses,

           (3) Less operating taxes except the net income tax being apportioned and except any other tax not
               treated as a deductible item in the determination of taxable net income for this purpose.

           (4) Less operating fixed charges.

                 (i)   The amount of fixed charges attributable to the operations is obtained by subtracting the tax
                       component (positive or negative) attributable to other than the operating fixed charges, i.e.,
                       fixed charges on non-operating investments are that proportion of total fixed charges which
                       non-operating net investments are of total operating and non-operating net investments.

                (ii) Operating fixed charges including interest on Rural Telephone Bank Stock are apportioned
                     among the operations on the basis of the separation of the cost of telephone plant less
                     appropriate reserves.

     (c) Other operating taxes should be directly assigned to the appropriate jurisdiction where possible, e.g.,
         Local Gross Receipts may be directly identified as applicable to one jurisdiction. Where direct assignment
         is not feasible, these expenses should be apportioned among the operations on the basis of the
         separation of the cost of Telecommunications Plant in Service—Account 2001.

                                               EQUAL ACCESS EXPENSES

§ 36.421 Equal access expenses.
     (a) Equal access expenses include only initial incremental pre-subscription costs and other initial incremental
         expenditures related directly to the provision of equal access, that would not be required to upgrade the
         capabilities of the office involved absent the provision of equal access. Equal access expenses are limited
         to such expenditures for converting central offices that serve competitive interexchange carriers or where
         there has been a bona fide request for conversion to equal access.

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     (b) Equal access expenses are apportioned between the jurisdictions by first segregating them from all other
         expenses in the primary accounts and then allocating them on the same basis as equal access
         investment.

Subpart E—Reserves and Deferrals
§ 36.501 General.
For separations purposes, reserves and deferrals include the following accounts:

 Other Jurisdictional Assets—Net                                                   Account 1500.
 Accumulated Depreciation                                                          Account 3100.
 Accumulated Depreciation—Property Held for Future Telecommunications Use          Account 3200.
 Accumulated Amortization—Capital Leases                                           Account 3400.
 Net Current Deferred Operating Income Taxes                                       Account 4100.
 Net Noncurrent Deferred Operating Income Taxes                                    Account 4340.
 Other Jurisdictional Liabilities and Deferred Credits—Net                         Account 4370.

[69 FR 12553, Mar. 17, 2004, as amended at 83 FR 63587, Dec. 11, 2018]

§ 36.502 Other jurisdictional assets—Net—Account 1500.
     (a) Amounts in this account are separated based upon analysis of the specific items involved.

§ 36.503 Accumulated depreciation—Account 3100.
     (a) Amounts recorded in this account shall be separated on the basis of the separation of the associated
         primary Plant Accounts or related categories, excluding amortizable assets.

§ 36.504 Accumulated depreciation—Property held for future telecommunications
use—Account 3200.
     (a) Amounts in this account are apportioned among the operations on the basis of the separation of the
         costs of the related items carried in Account 2002—Property Held for Future Telecommunications Use.

§ 36.505 Accumulated amortization—Tangible—Account 3400.
Amounts in these accounts are apportioned among the operations on the basis of the separation of the related
accounts.

[52 FR 17229, May 6, 1987, as amended at 83 FR 63587, Dec. 11, 2018]

§ 36.506 Net current deferred operating income taxes—Account 4100, Net noncurrent deferred
operating income taxes—Account 4340.
     (a) Amounts in these accounts are maintained by plant account and are apportioned among the operations
         on the basis of the separations of the related plant accounts.

§ 36.507 Other jurisdictional liabilities and deferred credits—Net—Account 4370.
     (a) Amounts in this account are separated based upon an analysis of the specific items involved.
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Subparts F–G [Reserved]
Appendix to Part 36—Glossary
The descriptions of terms in this glossary are broad and have been prepared to assist in understanding the use of
such terms in the separation procedures. Terms which are defined in the text of this part are not included in this
glossary.

Access Line

A communications facility extending from a customer's premises to a serving central office comprising a subscriber
line and, if necessary, a trunk facility, e.g., a WATS access line.

Book Cost

The cost of property as recorded on the books of a company.

Cable Fill Factor

The ratio of cable conductor or cable pair kilometers in use to total cable conductor or cable pair kilometers
available in the plant, e.g., the ratio of revenue producing cable pair kilometers in use to total cable pair kilometers in
plant.

Category

A grouping of items of property or expense to facilitate the apportionment of their costs among the operations and
to which, ordinarily, a common measure of use is applicable.

Central Office

A switching unit, in a telephone system which provides service to the general public, having the necessary
equipment and operations arrangements for terminating and interconnecting subscriber lines and trunks or trunks
only. There may be more than one central office in a building.

Channel

An electrical path suitable for the transmission of communications between two or more points, ordinarily between
two or more stations or between channel terminations in Telecommunication Company central offices. A channel
may be furnished by wire, fiberoptics, radio or a combination thereof.

Circuit

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A fully operative communications path established in the normal circuit layout and currently used for message,
WATS access, or private line services.

Circuit Kilometers

The route kilometers or revenue producing circuits in service, determined by measuring the length in terms of
kilometers, of the actual path followed by the transmission medium.

Common Channel Network Signaling

Channels between switching offices used to transmit signaling information independent of the subscribers'
communication paths or transmission channels.

Complement (of cable)

A group of conductors of the same general type (e.g., quadded, paired) within a single cable sheath.

Complex

All groups of operator positions, wherever located, associated with the same call distribution and/or stored program
control unit.

Concentration Equipment

Central office equipment whose function is to concentrate traffic from subscriber lines onto a lesser number of
circuits between the remotely located concentration equipment and the serving central office concentration
equipment. This concentration equipment is connected to the serving central office line equipment.

Connection—Minute

The product of (a) the number of messages and, (b) the average minutes of connection per message.

Conversation—Minute

The product of (a) the number of messages and, (b) the average minutes of conversation per message.

Conversation—Minute—Kilometers

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The product of (a) the number of messages, (b) the average minutes of conversation per message and (c) the
average route kilometers of circuits involved.

Cost

The cost of property owned by the Telephone Company whose property is to be apportioned among the operations.
This term applies either to property costs recorded on the books of the company or property costs determined by
other evaluation methods.

Current Billing

The combined amount of charges billed, excluding arrears.

Customer Dialed Charge Traffic

Traffic which is both (a) handled to completion through pulses generated by the customer and (b) for which either a
message unit change, bulk charge or message toll charge is except for that traffic recorded by means of message
registers.

Customer Premises Equipment

Items of telecommunications terminal equipment in Accounts 2310 referred to as CPE in § 64.702 of the Federal
Communication Commission's Rules adopted in the Second Computer Inquiry such as telephone instruments, data
sets, dialers and other supplemental equipment, and PBX's which are provided by common carriers and located on
customer premises and inventory included in these accounts to be used for such purposes. Excluded from this
classification are similar items of equipment located on telephone company premises and used by the company in
the normal course of business as well as over voltage protection equipment, customer premises wiring, coin
operated public or pay telephones, multiplexing equipment to deliver multiple channels to the customer, mobile
radio equipment and transmit earth stations.

Customer Premises Wire

The segment of wiring from the customer's side of the protector to the customer premises equipment.

DSA Board

A local dial office switchboard at which are handled assistance calls, intercepted calls and calls from miscellaneous
lines and trunks. It may also be employed for handling certain toll calls.

DSB Board

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A switchboard of a dial system for completing incoming calls received from manual offices.

Data Processing Equipment

Office equipment such as that using punched cards, punched tape, magnetic or other comparable storage media as
an operating vehicle for recording and processing information. Includes machines for transcribing raw data into
punched cards, etc., but does not include such items as key-operated, manually or electrically driven adding,
calculating, bookkeeping or billing machines, typewriters or similar equipment.

Dial Switching Equipment

Switching equipment actuated by electrical impulses generated by a dial or key pulsing arrangement.

Equal Access Costs

Include only initial incremental presubscription costs and initial incremental expenditures for hardware and
software related directly to the provision of equal access which would not be required to upgrade the switching
capabilities of the office involved absent the provisions of equal access.

Equivalent Gauge

A standard cross section of cable conductors for use in equating the metallic content of cable conductors of all
gauge to a common base.

Equivalent Kilometers of 104 Wire

The basic units employed in the allocation of pole lines costs for determining the relative use made of poles by
aerial cables and by aerial wire conductors of various sizes. This unit reflects the relative loads of such cable and
wire carried on poles.

Equivalent Pair Kilometers

The product of sheath Kilometers and the number of equivalent gauge pairs of conductors in a cable.

Equivalent Sheath Kilometers

The product of (a) the length of a section of cable in kilometers (sheath kilometers) and (b) the ratio of the metallic
content applicable to a particular group of conductors in the cable (e.g., conductors assigned to a category) to the
metallic content of all conductors in the cable.

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Exchange Transmission Plant

This is a combination of (a) exchange cable and wire facilities (b) exchange central office circuit equipment,
including associated land and buildings and (c) information origination/termination equipment which forms a
complete channel.

Holding Time

The time in which an item of telephone plant is in actual use either by a customer or an operator. For example, on a
completed telephone call, holding time includes conversation time as well as other time in use. At local dial offices
any measured minutes which result from other than customer attempts to place calls (as evidenced by the dialing
of at least one digit) are not treated as holding time.

Host Central Office

An electronic analog or digital base switching unit containing the central call processing functions which service the
host office and its remote locations.

Information Origination/Termination Equipment

Equipment used to input into or receive output from the telecommunications network.

Interexchange Channel

A circuit which is included in the interexchange transmission equipment.

Interexchange Transmission Equipment

The combination of (a) interexchange cable and wire facilities, (b) interexchange circuit equipment and, (c)
associated land and buildings.

Interlocal Trunk

A circuit between two local central office units, either manual or dial. Interlocal trunks may be used for either
exchange or toll traffic or both.

Intertoll Circuits

Circuits between toll centers and circuits between a toll center and a tandem system in a different toll center area.

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Local Channel

The portion of a private line circuit which is included in the exchange transmission plant. However, common usage
of this term usually excludes information origination/termination equipment.

Local Office

A central office serving primarily as a place of termination for subscriber lines and for providing telephone service to
the subscribers on these lines.

Loop

A pair of wires, or its equivalent, between a customer's station and the central office from which the station is
served.

Message

A completed call, i.e., a communication in which a conversation or exchange of information took place between the
calling and called parties.

Message Service or Message Toll Service

Switched service furnished to the general public (as distinguished from private line service). Except as otherwise
provided, this includes exchange switched services and all switched services provided by interexchange carriers
and completed by a local telephone company's access services, e.g., MTS, WATS, Execunet, open-end FX and
CCSA/ONALs.

Message Units

Unit of measurement used for charging for measured message telephone exchange traffic within a specified area.

Metropolitan Service Area

The area around and including a relatively large city and in which substantially all of the message telephone traffic
between the city and the suburban points within the area is classified as exchange in one or both directions.

Minutes-of-Use

A unit of measurement expressed as either holding time or conversation time.

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Minutes-of-Use-Kilometers

The product of (a) the number of minutes-of-use and (b) the average route kilometers of circuits involved.

Multi-Center Exchange

An exchange area in which are located two or more local central office buildings or wire centers.

Operations

The term denoting the general classifications of services rendered to the public for which separate tariffs are filed,
namely exchange, state toll and interstate toll.

Operator Trunks

A general term, ordinarily applied to trunks between manually operated switchboard positions and local dial central
offices in the same wire center.

Private Line Service

A service for communications between specified locations for a continuous period or for regularly recurring periods
at stated hours.

Remote Access Line

An access line (e.g., for WATS service) between a subscriber's premises in one toll rate center and a serving central
office located in a different toll rate center.

Remote Line Location

A remotely located subscriber line access unit which is normally dependent upon the central processor of the host
office for call processing functions.

Remote Trunk Arrangement (RTA)

Arrangement that permits the extension of TSPS functions to remote locations.

Reservation

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That amount or quantity of property kept or set apart for a specific use.

Reserved

Kept or set apart for a specific use.

Separations

The process by which telecommunication property costs, revenues, expenses, taxes and reserves are apportioned
among the operations.

Service Observing Unit

A unit of work measurement which is used as the common denominator to express the relative time required for
handling the various work functions at service observing boards.

Sheath Kilometers

The actual length of cable in route kilometers.

Special Services

All services other than message telephones, e.g., private line services.

Station-to-Station Basis

The term applied to the basis of toll rate making which contemplates that the message toll service charge
(telephone) covers the use made of all facilities between the originating station and the terminating station,
including the stations, and the services rendered in connection therewith.

Study Area

Study area boundaries shall be frozen as they are on November 15, 1984.

Subscriber Line or Exchange Line

A communication channel between a telephone station or PBX station and the central office which serves it.

Subtributary Office
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A class of tributary office which does not have direct access to its toll center, but which is connected to its toll
center office by means of circuits which are switched through to the toll center at another tributary office.

Tandem Area

The general areas served by the local offices having direct trunks to or from the tandem office. This area may
consist of one or more communities or may include only a portion of a relatively large city.

Tandem Circuit or Trunk

A general classification of circuits or trunks between a tandem central office unit and any other central office or
switchboard.

Tandem Connection

A call switched at a tandem office.

Tandem Office

A central office unit used primarily as an intermediate switching point for traffic between local central offices within
the tandem area. Where qualified by a modifying expression, or other explanation, this term may be applied to an
office employed for both the interconnection of local central offices within the tandem area and for the
interconnection of these local offices with other central offices, e.g., long haul tandem office.

Toll Center

An office (or group of offices) within a city which generally handles the originating and incoming toll traffic for that
city to or from other toll center areas and which handles through switched traffic. The toll center normally handles
the inward toll traffic for its tributary exchanges and, in general, either handles the outward traffic originating at its
tributaries or serves as the outlet to interexchange circuits for outward traffic ticketed and timed at its tributaries.
Toll centers are listed as such in the Toll Rate and Route Guide.

Toll Center Area

The areas served by a toll center, including the toll center city and the communities served by tributaries of the toll
center.

Toll Center Toll Office

A toll office (as contrasted to a local office) in a toll center city.

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Toll Circuit

A general term applied to interexchange trunks used primarily for toll traffic.

Toll Connecting Trunk

A general classification of trunks carrying toll traffic and ordinarily extending between a local office and a toll office,
except trunks classified as tributary circuits. Examples of toll connecting trunks include toll switching trunks,
recording trunks and recording-completing trunks.

Toll Office

A central office used primarily for supervising and switching toll traffic.

Traffic Over First Routes

A term applied to the routing of traffic and denoting routing via principal route for traffic between any two points as
distinguished from alternate routes for such traffic.

Operator System

A stored program electronic system associated with one or more toll switching systems which provides centralized
traffic service position functions for several local offices at one location.

Tributary Circuit

A circuit between a tributary office and a toll switchboard or intertoll dialing equipment in a toll center city.

Tributary Office

A local office which is located outside the exchange in which a toll center is located, which has a different rate
center from its toll center and which usually tickets and times only a part of its originating toll traffic, but which may
ticket or time all or none, of such traffic. The toll center handles all outward traffic not ticketed and timed at the
tributary and normally switches all inward toll traffic from outside the tributary's toll center to the tributary. Tributary
offices are indicated as such in the Toll Rate and Route Guide.

Trunks

Circuit between switchboards or other switching equipment, as distinguished from circuits which extend between
central office switching equipment and information origination/termination equipment.

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TSPS Complex

All groups of operator positions, wherever located, associated with the same TSPS stored program control units.

Weighted Standard Work Second

A measurement of traffic operating work which is used to express the relative time required to handle the various
kinds of calls or work functions, and which is weighted to reflect appropriate degrees of waiting to serve time.

Wide Area Telephone Service WATS

A toll service offering for customer dial type telecommunications between a given customer station and stations
within specified geographic rate areas employing a single access line between the customer location and the
serving central office. Each access line may be arranged for either outward (OUT–WATS) or inward (IN–WATS)
service or both.

Wideband Channel

A communication channel of a bandwidth equivalent to twelve or more voice grade channels.

Working Loop

A revenue producing pair of wires, or its equivalent, between a customer's station and the central office from which
the station is served.

[71 FR 65747, Nov. 9, 2006]

[1]
  The Commission has determined that the same jurisdictional separations used in the contiguous states are to be
used for Alaska, Hawaii, Puerto Rico and the Virgin Islands. Integration of Rates and Services, Docket No. 21263, 87
FCC 2nd 18 (1981); Integration of Rates and Services, Docket No. 21264, 72 FCC 2nd 699 (1979).

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