APPENDIX B - Final Rules
AMENDMENTS TO THE CODE OF FEDERAL REGULATIONS
1. Part 1 of Title 47 of the Code of Federal Regulations (C.F.R.) is amended as
follows:
PART 1 -- PRACTICE AND PROCEDURE
2. The table of contents of part 1 is revised to read as follows:
* * * * *
Subpart J - Pole Attachment Complaint Procedures
1.1401 Purpose.
1.1402 Definitions.
1.1403 Duty to provide access; modifications; notice of removal, increase or modification; petition for temporary stay.
1.1404 Complaint.
1.1405 File numbers.
1.1406 Dismissal of complaints.
1.1407 Response and reply.
1.1408 Number of copies and form of pleadings.
1.1409 Commission consideration of the complaint.
1.1410 Remedies.
1.1411 Meetings and hearings.
1.1412 Enforcement.
1.1413 Forfeiture.
1.1414 State certification.
1.1415 Other orders.
1.1416 Imputation of rates; modification costs.
* * * * *
3. The authority citation for part 1 is revised to read as follows:
AUTHORITY: 47 U.S.C. 151, 154, 251, 252, 303, and 309(j) unless otherwise noted.
4. Section 1.1401 is revised to read as follows:
1.1401 Purpose.
The rules and regulations contained in subpart J of this part provide complaint and
enforcement procedures to ensure that telecommunications carriers and cable system
operators have nondiscriminatory access to utility poles, ducts, conduits, and
rights-of-way on rates, terms, and conditions that are just and reasonable.
5. Section 1.1402 is amended by revising paragraph (d) to read as follows:
1.1402 Definitions.
* * * * *
(d) The term complaint means a filing by a cable television system
operator, a cable television system association, a utility, an association of utilities, a
telecommunications carrier, or an association of telecommunications carriers alleging that
it has been denied access to a utility pole, duct, conduit, or right-of-way in violation
of this subpart and/or that a rate, term, or condition for a pole attachment is not just
and reasonable.
* * * * *
6. Section 1.1403 is amended by retitling the section, by amending paragraphs (a) and
(b) and redesignating them as paragraphs (c) and (d), respectively, and by adding new
paragraphs (a) and (b) to read as follows:
1.1403 Duty to provide access; modifications; notice of removal, increase or
modification; petition for temporary stay.
(a) A utility shall provide a cable television system or any telecommunications carrier
with nondiscriminatory access to any pole, duct, conduit, or right-of-way owned or
controlled by it. Notwithstanding this obligation, a utility may deny a cable television
system or any telecommunications carrier access to its poles, ducts, conduits, or
rights-of-way, on a non-discriminatory basis where there is insufficient capacity or for
reasons of safety, reliability and generally applicable engineering purposes.
(b) Requests for access to a utility's poles, ducts, conduits or rights-of-way by a
telecommunications carrier or cable operator must be in writing. If access is not granted
within 45 days of the request for access, the utility must confirm the denial in writing
by the 45th day. The utility's denial of access shall be specific, shall include all
relevant evidence and information supporting its denial, and shall explain how such
evidence and information relate to a denial of access for reasons of lack of capacity,
safety, reliability or engineering standards.
(c) A utility shall provide a cable television system operator or telecommunications
carrier no less than 60 days written notice prior to: (1) removal of facilities or
termination of any service to those facilities, such removal or termination arising out of
a rate, term or condition of the cable television system operator's of telecommunications
carrier's pole attachment agreement, or (2) any increase in pole attachment rates; or (3)
any modification of facilities other than routine maintenance or modification in response
to emergencies.
(d) A cable television system operator or telecommunications carrier may file a
"Petition for Temporary Stay" of the action contained in a notice received
pursuant to paragraph (c) of this section within 15 days of receipt of such notice. Such
submission shall not be considered unless it includes, in concise terms, the relief
sought, the reasons for such relief, including a showing of irreparable harm and likely
cessation of cable television service or telecommunication service, a copy of the notice,
and certification of service as required by 1.1404(b) of this subpart. The named
respondent may file an answer within 7 days of the date the Petition for Temporary Stay
was filed. No further filings under this section will be considered unless requested or
authorized by the Commission and no extensions of time will be granted unless justified
pursuant to 1.46.
7. Section 1.1404 is amended by revising paragraphs (b) and (c) and by adding new
paragraph (k) to read as follows:
1.1404 Complaint.
* * * * *
(b) The complaint shall be accompanied by a certification of service on the named
respondent, and each of the Federal, State, and local governmental agencies that regulate
any aspect of the services provided by the complainant or respondent.
(c) In a case where it is claimed that a rate, term, or condition is unjust or
unreasonable, the complaint shall contain a statement that the State has not certified to
the Commission that it regulates the rates, terms and conditions for pole attachments. The
complaint shall include a statement that the utility is not owned by any railroad, any
person who is cooperatively organized or any person owned by the Federal Government or any
State.
* * * * *
(k) In a case where a cable television system operator or telecommunications carrier
claims that it has been denied access to a pole, duct, conduit or right-of-way despite a
request made pursuant to section 47 U.S.C. 224(f), the complaint shall be filed within 30
days of such denial. In addition to meeting the other requirements of this section, the
complaint shall include the data and information necessary to support the claim,
including:
(1) The reasons given for the denial of access to the utility's poles, ducts, conduits and rights-of-way;
(2) The basis for the complainant's claim that the denial of access is improper;
(3) The remedy sought by the complainant;
(4) A copy of the written request to the utility for access to its poles, ducts, conduits or rights-of-way;
(5) A copy of the utility's response to the written request including all information
given by the utility to support its denial of access. A complaint alleging improper denial
of access will not be dismissed if the complainant is unable to obtain a utility's written
response, or if the utility denies the complainant any other information needed to
establish a prima facie case.
8. Section 1.1409 is amended by revising paragraphs (b) and (d) to read as follows:
1.1409 Commission consideration of the complaint.
* * * * *
(b) The complainant shall have the burden of establishing a prima facie
case that the rate, term, or condition is not just and reasonable or that the denial of
access violates 47 U.S.C. 224(f). If, however, a utility argues that the proposed rate is
lower than its incremental costs, the utility has the burden of establishing that such
rate is below the statutory minimum just and reasonable rate. In a case involving a denial
of access, the utility shall have the burden of proving that the denial was lawful, once a
prima facie case is established by the complainant.
* * * * *
(d) The Commission shall deny the complaint if it determines that the complainant has
not established a prima facie case, or that the rate, term or condition is
just and reasonable, or that the denial of access was lawful.
* * * * *
9. Section 1.1416 is amended by retitling the section and by amending paragraph (b) to
read as follows:
1.1416 Imputation of rates; modification costs.
* * * * *
(b) The costs of modifying a facility shall be borne by all parties that obtain access to the facility as a result of the modification and by all parties that directly benefit from the modification. Each party described in the preceding sentence shall share proportionately in the cost of the modification. A party with a preexisting attachment to the modified facility shall be deemed to directly benefit from a modification if, after receiving notification of such modification as provided in subpart J of this part, it adds to or modifies its attachment. Notwithstanding the foregoing, a party with a preexisting attachment to a pole, conduit, duct or right-of-way shall not be required to bear any of the costs of rearranging or replacing its attachment if such rearrangement or replacement is necessitated solely as a result of an additional attachment or the modification of an existing attachment sought by another party. If a party makes an attachment to the facility after the completion of the modification, such party shall share proportionately in the cost of the modification if such modification rendered possible the added attachment.
10. Part 20 of Title 47 of the Code of Federal Regulations (C.F.R.) is amended as
follows:
PART 20 -- COMMERCIAL MOBILE RADIO SERVICES
11. The authority citation for part 20 is revised to read as follows:
AUTHORITY: Secs. 4, 251-2, 303, and 332, 48 Stat. 1066, 1062, as amended; 47 U.S.C.
154, 251-4, 303, and 332 unless otherwise noted.
12. Section 20.11 is amended by adding paragraph (c) to read as follows:
20.11 Interconnection to facilities of local exchange carriers.
* * * * *
(c) Local exchange carriers and commercial mobile radio service providers shall also
comply with applicable provisions of part 51 of this chapter.
13. Part 51 of Title 47 of the Code of Federal Regulations (C.F.R.) is added to read as
follows:
PART 51 -- INTERCONNECTION
Subpart A - General information
Sec.
51.1 Basis and purpose.
51.3 Applicability to negotiated agreements.
51.5 Terms and definitions.
Subpart B - Telecommunications carriers
51.100 General duty.
Subpart C - Obligations of all local exchange carriers
51.201 Resale.
51.203 Number portability.
51.219 Access to rights of way.
51.221 Reciprocal compensation.
51.223 Application of additional requirements.
Subpart D - Additional obligations of incumbent local exchange carriers
51.301 Duty to negotiate.
51.303 Preexisting agreements.
51.305 Interconnection.
51.307 Duty to provide access on an unbundled basis to network elements.
51.309 Use of unbundled network elements.
51.311 Nondiscriminatory access to unbundled network elements.
51.313 Just, reasonable and nondiscriminatory terms and conditions for the provision of unbundled network elements.
51.315 Combination of unbundled network elements.
51.317 Standards for identifying network elements to be made available.
51.319 Specific unbundling requirements.
51.321 Methods of obtaining interconnection and access to unbundled elements under section 251 of the Act.
51.323 Standards for physical collocation and virtual collocation.
Subpart E - Exemptions, suspensions, and modifications of requirements of
section 251 of the Act.
51.401 State authority.
51.403 Carriers eligible for suspension or modification under section 251(f)(2) of the Act.
51.405 Burden of proof.
Subpart F - Pricing of interconnection and unbundled elements
51.501 Scope.
51.503 General pricing standard.
51.505 Forward-looking economic cost.
51.507 General rate structure standard.
51.509 Rate structure standards for specific elements.
51.511 Forward-looking economic cost per unit.
51.513 Proxies for forward-looking economic cost.
51.515 Application of access charges.
Subpart G - Resale
51.601 Scope of resale rules.
51.603 Resale obligation of all local exchange carriers.
51.605 Additional obligations of incumbent local exchange carriers.
51.607 Wholesale pricing standard.
51.609 Determination of avoided retail costs.
51.611 Interim wholesale rates.
51.613 Restrictions on resale.
51.615 Withdrawal of services.
51.617 Assessment of end user common line charge on resellers.
Subpart H - Reciprocal compensation for transport and termination of local
telecommunications traffic
51.701 Scope of transport and termination pricing rules.
51.703 Reciprocal compensation obligation of LECs.
51.705 Incumbent LECs' rates for transport and termination.
51.707 Default proxies for incumbent LECs' transport and termination rates.
51.709 Rate structure for transport and termination.
51.711 Symmetrical reciprocal compensation.
51.713 Bill-and-keep arrangements for reciprocal compensation.
51.715 Interim transport and termination pricing.
51.717 Renegotiation of existing non-reciprocal arrangements.
Subpart I - Procedures for implementation of section 252 of the Act.
51.801 Commission action upon a state commission's failure to act to carry out its responsibility under section 252 of the Act.
51.803 Procedures for Commission notification of a state commission's failure to act.
51.805 The Commission's authority over proceedings and matters.
51.807 Arbitration and mediation of agreements by the Commission pursuant to section 252(e)(5) of the Act.
51.809 Availability of provisions of agreements to other telecommunications
carriers under section 252(i) of the Act.
AUTHORITY: Sections 1-5, 7, 201-05, 218, 225-27, 251-54, 271, 48 Stat. 1070, as
amended, 1077; 47 U.S.C. 151-55, 157, 201-05, 218, 225-27, 251-54, 271, unless otherwise
noted.
Subpart A - General Information.
51.1 Basis and purpose.
(a) Basis. These rules are issued pursuant to the Communications Act of
1934, as amended.
(b) Purpose. The purpose of these rules is to implement sections 251
and 252 of the Communications Act of 1934, as amended, 47 U.S.C. 251 and 252.
51.3 Applicability to negotiated agreements.
To the extent provided in section 252(e)(2)(A) of the Act, a state commission shall
have authority to approve an interconnection agreement adopted by negotiation even if the
terms of the agreement do not comply with the requirements of this part.
51.5 Terms and definitions.
Terms used in this part have the following meanings:
Act. The Communications Act of 1934, as amended.
Advanced intelligent network. "Advanced Intelligent Network"
is a telecommunications network architecture in which call processing, call routing, and
network management are provided by means of centralized databases located at points in an
incumbent local exchange carrier's network.
Arbitration, final offer. "Final offer arbitration" is a
procedure under which each party submits a final offer concerning the issues subject to
arbitration, and the arbitrator selects, without modification, one of the final offers by
the parties to the arbitration or portions of both such offers. "Entire package final
offer arbitration," is a procedure under which the arbitrator must select, without
modification, the entire proposal submitted by one of the parties to the arbitration.
"Issue-by-issue final offer arbitration," is a procedure under which the
arbitrator must select, without modification, on an issue-by-issue basis, one of the
proposals submitted by the parties to the arbitration.
Billing. "Billing" involves the provision of appropriate
usage data by one telecommunications carrier to another to facilitate customer billing
with attendant acknowledgements and status reports. It also involves the exchange of
information between telecommunications carriers to process claims and adjustments.
Commercial Mobile Radio Service (CMRS). "CMRS" has the same
meaning as that term is defined in 20.3 of this chapter.
Commission. "Commission" refers to the Federal Communications Commission.
Directory assistance service. "Directory assistance service"
includes, but is not limited to, making available to customers, upon request, information
contained in directory listings.
Directory listings. "Directory listings" are any information:
(1) identifying the listed names of subscribers of a telecommunications carrier and such
subscriber's telephone numbers, addresses, or primary advertising classifications (as such
classifications are assigned at the time of the establishment of such service), or any
combination of such listed names, numbers, addresses or classifications; and (2) that the
telecommunications carrier or an affiliate has published, caused to be published, or
accepted for publication in any directory format.
Downstream database. A "downstream database" is a database
owned and operated by an individual carrier for the purpose of providing number
portability in conjunction with other functions and services.
Equipment necessary for interconnection or access to unbundled network elements.
For purposes of section 251(c)(2) of the Act, the equipment used to interconnect with an
incumbent local exchange carrier's network for the transmission and routing of telephone
exchange service, exchange access service, or both. For the purposes of section 251(c)(3)
of the Act, the equipment used to gain access to an incumbent local exchange carrier's
unbundled network elements for the provision of a telecommunications service.
Incumbent Local Exchange Carrier (Incumbent LEC). With respect to an
area, the local exchange carrier that: (1) on February 8, 1996, provided telephone
exchange service in such area; and (2) (i) on February 8, 1996, was deemed to be a member
of the exchange carrier association pursuant to 69.601(b) of this chapter; or (ii) is a
person or entity that, on or after February 8, 1996, became a successor or assign of a
member described in clause (i) of this paragraph.
Interconnection. "Interconnection" is the linking of two networks for the mutual exchange of traffic. This term does not include the transport and termination of traffic.
Local Exchange Carrier (LEC). A "LEC" is any person that is
engaged in the provision of telephone exchange service or exchange access. Such term does
not include a person insofar as such person is engaged in the provision of a commercial
mobile service under section 332(c) of the Act, except to the extent that the Commission
finds that such service should be included in the definition of the such term.
Maintenance and repair. "Maintenance and repair" involves the
exchange of information between telecommunications carriers where one initiates a request
for maintenance or repair of existing products and services or unbundled network elements
or combination thereof from the other with attendant acknowledgements and status reports.
Meet point. A "meet point" is a point of interconnection
between two networks, designated by two telecommunications carriers, at which one
carrier's responsibility for service begins and the other carrier's responsibility ends.
Meet point interconnection arrangement. A "meet point
interconnection arrangement" is an arrangement by which each telecommunications
carrier builds and maintains its network to a meet point.
Network element. A "network element" is a facility or
equipment used in the provision of a telecommunications service. Such term also includes,
but is not limited to, features, functions, and capabilities that are provided by means of
such facility or equipment, including but not limited to, subscriber numbers, databases,
signaling systems, and information sufficient for billing and collection or used in the
transmission, routing, or other provision of a telecommunications service.
Operator services. "Operator services" are any automatic or
live assistance to a consumer to arrange for billing or completion of a telephone call.
Such services include, but are not limited to, busy line verification, emergency
interrupt, and operator-assisted directory assistance services.
Physical collocation. "Physical collocation" is an offering by an incumbent LEC that enables a requesting telecommunications carrier to:
(1) place its own equipment to be used for interconnection or access to unbundled network elements within or upon an incumbent LEC's premises;
(2) use such equipment to interconnect with an incumbent LEC's network facilities for the transmission and routing of telephone exchange service, exchange access service, or both, or to gain access to an incumbent LEC's unbundled network elements for the provision of a telecommunications service;
(3) enter those premises, subject to reasonable terms and conditions, to install, maintain, and repair equipment necessary for interconnection or access to unbundled elements; and
(4) obtain reasonable amounts of space in an incumbent LEC's premises, as provided in
this part, for the equipment necessary for interconnection or access to unbundled
elements, allocated on a first-come, first-served basis.
Premises. "Premises" refers to an incumbent LEC's central
offices and serving wire centers, as well as all buildings or similar structures owned or
leased by an incumbent LEC that house its network facilities, and all structures that
house incumbent LEC facilities on public rights-of-way, including but not limited to
vaults containing loop concentrators or similar structures.
Pre-ordering and ordering. "Pre-ordering and ordering"
includes the exchange of information between telecommunications carriers about current or
proposed customer products and services or unbundled network elements or some combination
thereof.
Provisioning. "Provisioning" involves the exchange of
information between telecommunications carriers where one executes a request for a set of
products and services or unbundled network elements or combination thereof from the other
with attendant acknowledgements and status reports.
Rural telephone company. A "rural telephone company" is a LEC operating entity to the extent that such entity:
(1) provides common carrier service to any local exchange carrier study area that does not include either:
(i) any incorporated place of 10,000 inhabitants or more, or any part thereof, based on the most recently available population statistics of the Bureau of the Census; or
(ii) any territory, incorporated or unincorporated, included in an urbanized area, as defined by the Bureau of the Census as of August 10, 1993;
(2) provides telephone exchange service, including exchange access, to fewer than 50,000 access lines;
(3) provides telephone exchange service to any local exchange carrier study area with fewer than 100,000 access lines; or
(4) has less than 15 percent of its access lines in communities of more than 50,000 on
February 8, 1996.
Service control point. A "service control point" is a
computer database in the public switched network which contains information and call
processing instructions needed to process and complete a telephone call.
Service creation environment. A "service creation
environment" is a computer containing generic call processing software that can be
programmed to create new advanced intelligent network call processing services.
Signal transfer point. A "signal transfer point" is a packet
switch that acts as a routing hub for a signaling network and transfers messages between
various points in and among signaling networks.
State commission. A "state commission" means the commission,
board, or official (by whatever name designated) which under the laws of any State has
regulatory jurisdiction with respect to intrastate operations of carriers. As referenced
in this part, this term may include the Commission if it assumes the responsibility of the
state commission, pursuant to section 252(e)(5) of the Act. This term shall also include
any person or persons to whom the state commission has delegated its authority under
section 251 and 252 of the Act.
State proceeding. A "state proceeding" is any administrative
proceeding in which a state commission may approve or prescribe rates, terms, and
conditions including, but not limited to, compulsory arbitration pursuant to section
252(b) of the Act, review of a Bell operating company statement of generally available
terms pursuant section 252(f) of the Act, and a proceeding to determine whether to approve
or reject an agreement adopted by arbitration pursuant to section 252(e) of the Act.
Technically feasible. Interconnection, access to unbundled network
elements, collocation, and other methods of achieving interconnection or access to
unbundled network elements at a point in the network shall be deemed technically feasible
absent technical or operational concerns that prevent the fulfillment of a request by a
telecommunications carrier for such interconnection, access, or methods. A determination
of technical feasibility does not include consideration of economic, accounting, billing,
space, or site concerns, except that space and site concerns may be considered in
circumstances where there is no possibility of expanding the space available. The fact
that an incumbent LEC must modify its facilities or equipment to respond to such request
does not determine whether satisfying such request is technically feasible. An incumbent
LEC that claims that it cannot satisfy such request because of adverse network reliability
impacts must prove to the state commission by clear and convincing evidence that such
interconnection, access, or methods would result in specific and significant adverse
network reliability impacts.
Telecommunications carrier. A "telecommunications carrier" is
any provider of telecommunications services, except that such term does not include
aggregators of telecommunications services (as defined in section 226 of the Act). A
telecommunications carrier shall be treated as a common carrier under the Act only to the
extent that it is engaged in providing telecommunications services, except that the
Commission shall determine whether the provision of fixed and mobile satellite service
shall be treated as common carriage. This definition includes CMRS providers,
interexchange carriers (IXCs) and, to the extent they are acting as telecommunications
carriers, companies that provide both telecommunications and information services. Private
Mobile Radio Service providers are telecommunications carriers to the extent they provide
domestic or international telecommunications for a fee directly to the public.
Virtual collocation. "Virtual collocation" is an offering by an incumbent LEC that enables a requesting telecommunications carrier to:
(1) designate or specify equipment to be used for interconnection or access to unbundled network elements to be located within or upon an incumbent LEC's premises, and dedicated to such telecommunications carrier's use;
(2) use such equipment to interconnect with an incumbent LEC's network facilities for the transmission and routing of telephone exchange service, exchange access service, or both, or for access to an incumbent LEC's unbundled network elements for the provision of a telecommunications service; and
(3) electronically monitor and control its communications channels terminating in such
equipment.
Subpart B - Telecommunications Carriers.
51.100 General duty.
(a) Each telecommunications carrier has the duty:
(1) to interconnect directly or indirectly with the facilities and equipment of other telecommunications carriers; and
(2) to not install network features, functions, or capabilities that do not comply with
the guidelines and standards as provided in the Commission's rules or section 255 or 256
of the Act.
(b) A telecommunication carrier that has interconnected or gained access under sections
251(a)(1), 251(c)(2), or 251(c)(3) of the Act, may offer information services through the
same arrangement, so long as it is offering telecommunications services through the same
arrangement as well.
Subpart C - Obligations of All Local Exchange Carriers.
51.201 Resale.
The rules governing resale of services by an incumbent LEC are set forth in subpart G
of this part.
51.203 Number portability.
The rules governing number portability are set forth in part 52, subpart C of this
chapter.
51.219 Access to rights of way.
The rules governing access to rights of way are set forth in part 1, subpart J of this
chapter.
51.221 Reciprocal compensation.
The rules governing reciprocal compensation are set forth in subpart H of this part.
51.223 Application of additional requirements.
(a) A state may not impose the obligations set forth in section 251(c) of the Act on a
LEC that is not classified as an incumbent LEC as defined in section 251(h)(1) of the Act,
unless the Commission issues an order declaring that such LECs or classes or categories of
LECs should be treated as incumbent LECs.
(b) A state commission, or any other interested party, may request that the Commission
issue an order declaring that a particular LEC be treated as an incumbent LEC, or that a
class or category of LECs be treated as incumbent LECs, pursuant to section 251(h)(2) of
the Act.
Subpart D - Additional Obligations of Incumbent Local Exchange Carriers.
51.301 Duty to negotiate.
(a) An incumbent LEC shall negotiate in good faith the terms and conditions of
agreements to fulfill the duties established by sections 251(b) and (c) of the Act.
(b) A requesting telecommunications carrier shall negotiate in good faith the terms and
conditions of agreements described in paragraph (a) of this section.
(c) If proven to the Commission, an appropriate state commission, or a court of
competent jurisdiction, the following actions or practices, among others, violate the duty
to negotiate in good faith:
(1) demanding that another party sign a nondisclosure agreement that precludes such
party from providing information requested by the Commission, or a state commission, or in
support of a request for arbitration under section 252(b)(2)(B) of the Act;
(2) demanding that a requesting telecommunications carrier attest that an agreement
complies with all provisions of the Act, federal regulations, or state law;
(3) refusing to include in an arbitrated or negotiated agreement a provision that
permits the agreement to be amended in the future to take into account changes in
Commission or state rules;
(4) conditioning negotiation on a requesting telecommunications carrier first obtaining
state certifications;
(5) intentionally misleading or coercing another party into reaching an agreement that
it would not otherwise have made;
(6) intentionally obstructing or delaying negotiations or resolutions of disputes;
(7) refusing throughout the negotiation process to designate a representative with
authority to make binding representations, if such refusal significantly delays resolution
of issues; and
(8) refusing to provide information necessary to reach agreement. Such refusal includes, but is not limited to:
(i) refusal by an incumbent LEC to furnish information about its network that a requesting telecommunications carrier reasonably requires to identify the network elements that it needs in order to serve a particular customer; and
(ii) refusal by a requesting telecommunications carrier to furnish cost data that would
be relevant to setting rates if the parties were in arbitration.
51.303 Preexisting agreements.
(a) All interconnection agreements between an incumbent LEC and a telecommunications carrier, including those negotiated before February 8, 1996, shall be submitted by the parties to the appropriate state commission for approval pursuant to section 252(e) of the Act.
(b) Interconnection agreements negotiated before February 8, 1996, between Class A
carriers, as defined by 32.11(a)(1) of this chapter, shall be filed by the parties with
the appropriate state commission no later than June 30, 1997, or such earlier date as the
state commission may require.
(c) If a state commission approves a preexisting agreement, it shall be made available
to other parties in accordance with section 252(i) of the Act and 51.809 of this part. A
state commission may reject a preexisting agreement on the grounds that it is inconsistent
with the public interest, or for other reasons set forth in section 252(e)(2)(A) of the
Act.
51.305 Interconnection.
(a) An incumbent LEC shall provide, for the facilities and equipment of any requesting
telecommunications carrier, interconnection with the incumbent LEC's network:
(1) for the transmission and routing of telephone exchange traffic, exchange access
traffic, or both;
(2) at any technically feasible point within the incumbent LEC's network including, at a minimum:
(i) the line-side of a local switch;
(ii) the trunk-side of a local switch;
(iii) the trunk interconnection points for a tandem switch;
(iv) central office cross-connect points;
(v) out-of-band signaling transfer points necessary to exchange traffic at these points and access call-related databases; and
(vi) the points of access to unbundled network elements as described in 51.319 of this
part;
(3) that is at a level of quality that is equal to that which the incumbent LEC
provides itself, a subsidiary, an affiliate, or any other party, except as provided in
paragraph (4) of this section. At a minimum, this requires an incumbent LEC to design
interconnection facilities to meet the same technical criteria and service standards that
are used within the incumbent LEC's network. This obligation is not limited to a
consideration of service quality as perceived by end users, and includes, but is not
limited to, service quality as perceived by the requesting telecommunications carrier;
(4) that, if so requested by a telecommunications carrier and to the extent technically
feasible, is superior in quality to that provided by the incumbent LEC to itself or to any
subsidiary, affiliate, or any other party to which the incumbent LEC provides
interconnection. Nothing in this section prohibits an incumbent LEC from providing
interconnection that is lesser in quality at the sole request of the requesting
telecommunications carrier; and
(5) on terms and conditions that are just, reasonable, and nondiscriminatory in accordance with the terms and conditions of any agreement, the requirements of sections 251 and 252 of the Act, and the Commission's rules including, but not limited to, offering such terms and conditions equally to all requesting telecommunications carriers, and offering such terms and conditions that are no less favorable than the terms and conditions the incumbent LEC provides such interconnection to itself. This includes, but is not limited to, the time within which the incumbent LEC provides such interconnection.
(b) A carrier that requests interconnection solely for the purpose of originating or
terminating its interexchange traffic on an incumbent LEC's network and not for the
purpose of providing to others telephone exchange service, exchange access service, or
both, is not entitled to receive interconnection pursuant to section 251(c)(2) of the Act.
(c) Previous successful interconnection at a particular point in a network, using
particular facilities, constitutes substantial evidence that interconnection is
technically feasible at that point, or at substantially similar points, in networks
employing substantially similar facilities. Adherence to the same interface or protocol
standards shall constitute evidence of the substantial similarity of network facilities.
(d) Previous successful interconnection at a particular point in a network at a
particular level of quality constitutes substantial evidence that interconnection is
technically feasible at that point, or at substantially similar points, at that level of
quality.
(e) An incumbent LEC that denies a request for interconnection at a particular point
must prove to the state commission that interconnection at that point is not technically
feasible.
(f) If technically feasible, an incumbent LEC shall provide two-way trunking upon
request.
51.307 Duty to provide access on an unbundled basis to network elements.
(a) An incumbent LEC shall provide, to a requesting telecommunications carrier for the
provision of a telecommunications service, nondiscriminatory access to network elements on
an unbundled basis at any technically feasible point on terms and conditions that are
just, reasonable, and nondiscriminatory in accordance with the terms and conditions of any
agreement, the requirements of sections 251 and 252 of the Act, and the Commission's
rules.
(b) The duty to provide access to unbundled network elements pursuant to section
251(c)(3) of the Act includes a duty to provide a connection to an unbundled network
element independent of any duty to provide interconnection pursuant to this part and
section 251(c)(2) of the Act.
(c) An incumbent LEC shall provide a requesting telecommunications carrier access to an
unbundled network element, along with all of the unbundled network element's features,
functions, and capabilities, in a manner that allows the requesting telecommunications
carrier to provide any telecommunications service that can be offered by means of that
network element.
(d) An incumbent LEC shall provide a requesting telecommunications carrier access to
the facility or functionality of a requested network element separate from access to the
facility or functionality of other network elements, for a separate charge.
51.309 Use of unbundled network elements.
(a) An incumbent LEC shall not impose limitations, restrictions, or requirements on
requests for, or the use of, unbundled network elements that would impair the ability of a
requesting telecommunications carrier to offer a telecommunications service in the manner
the requesting telecommunications carrier intends.
(b) A telecommunications carrier purchasing access to an unbundled network element may
use such network element to provide exchange access services to itself in order to provide
interexchange services to subscribers.
(c) A telecommunications carrier purchasing access to an unbundled network facility is
entitled to exclusive use of that facility for a period of time, or when purchasing access
to a feature, function, or capability of a facility, a telecommunications carrier is
entitled to use of that feature, function, or capability for a period of time. A
telecommunications carrier's purchase of access to an unbundled network element does not
relieve the incumbent LEC of the duty to maintain, repair, or replace the unbundled
network element.
51.311 Nondiscriminatory access to unbundled network elements.
(a) The quality of an unbundled network element, as well as the quality of the access
to the unbundled network element, that an incumbent LEC provides to a requesting
telecommunications carrier shall be the same for all telecommunications carriers
requesting access to that network element, except as provided in paragraph (c) of this
section.
(b) Except as provided in paragraph (c) of this section, to the extent technically
feasible, the quality of an unbundled network element, as well as the quality of the
access to such unbundled network element, that an incumbent LEC provides to a requesting
telecommunications carrier shall be at least equal in quality to that which the incumbent
LEC provides to itself. If an incumbent LEC fails to meet this requirement, the incumbent
LEC must prove to the state commission that it is not technically feasible to provide the
requested unbundled network element, or to provide access to the requested unbundled
network element, at a level of quality that is equal to that which the incumbent LEC
provides to itself.
(c) To the extent technically feasible, the quality of an unbundled network element, as
well as the quality of the access to such unbundled network element, that an incumbent LEC
provides to a requesting telecommunications carrier shall, upon request, be superior in
quality to that which the incumbent LEC provides to itself. If an incumbent LEC fails to
meet this requirement, the incumbent LEC must prove to the state commission that it is not
technically feasible to provide the requested unbundled network element or access to such
unbundled network element at the requested level of quality that is superior to that which
the incumbent LEC provides to itself. Nothing in this section prohibits an incumbent LEC
from providing interconnection that is lesser in quality at the sole request of the
requesting telecommunications carrier.
(d) Previous successful access to an unbundled element at a particular point in a
network, using particular facilities, is substantial evidence that access is technically
feasible at that point, or at substantially similar points, in networks employing
substantially similar facilities. Adherence to the same interface or protocol standards
shall constitute evidence of the substantial similarity of network facilities.
(e) Previous successful provision of access to an unbundled element at a particular
point in a network at a particular level of quality is substantial evidence that access is
technically feasible at that point, or at substantially similar points, at that level of
quality.
51.313 Just, reasonable and nondiscriminatory terms and conditions for the
provision of unbundled network elements.
(a) The terms and conditions pursuant to which an incumbent LEC provides access to
unbundled network elements shall be offered equally to all requesting telecommunications
carriers.
(b) Where applicable, the terms and conditions pursuant to which an incumbent LEC
offers to provide access to unbundled network elements, including but not limited to, the
time within which the incumbent LEC provisions such access to unbundled network elements,
shall, at a minimum, be no less favorable to the requesting carrier than the terms and
conditions under which the incumbent LEC provides such elements to itself.
(c) An incumbent LEC must provide a carrier purchasing access to unbundled network
elements with the pre-ordering, ordering, provisioning, maintenance and repair, and
billing functions of the incumbent LEC's operations support systems.
51.315 Combination of unbundled network elements.
(a) An incumbent LEC shall provide unbundled network elements in a manner that allows
requesting telecommunications carriers to combine such network elements in order to
provide a telecommunications service.
(b) Except upon request, an incumbent LEC shall not separate requested network elements that the incumbent LEC currently combines.
(c) Upon request, an incumbent LEC shall perform the functions necessary to combine unbundled network elements in any manner, even if those elements are not ordinarily combined in the incumbent LEC's network, provided that such combination is:
(1) technically feasible; and
(2) would not impair the ability of other carriers to obtain access to unbundled
network elements or to interconnect with the incumbent LEC's network.
(d) Upon request, an incumbent LEC shall perform the functions necessary to combine
unbundled network elements with elements possessed by the requesting telecommunications
carrier in any technically feasible manner.
(e) An incumbent LEC that denies a request to combine elements pursuant to paragraph
(c)(1) or paragraph (d) of this section must prove to the state commission that the
requested combination is not technically feasible.
(f) An incumbent LEC that denies a request to combine elements pursuant to paragraph
(c)(2) of this section must prove to the state commission that the requested combination
would impair the ability of other carriers to obtain access to unbundled network elements
or to interconnect with the incumbent LEC's network.
51.317 Standards for identifying network elements to be made available.
(a) In determining what network elements should be made available for purposes of
section 251(c)(3) of the Act beyond those identified in 51.319 of this part, a state
commission shall first determine whether it is technically feasible for the incumbent LEC
to provide access to a network element on an unbundled basis.
(b) If the state commission determines that it is technically feasible for the
incumbent LEC to provide access to the network element on an unbundled basis, the state
commission may decline to require unbundling of the network element only if:
(1) the state commission concludes that:
(i) the network element is proprietary, or contains proprietary information that will be revealed if the network element is provided on an unbundled basis; and
(ii) a requesting telecommunications carrier could offer the same proposed
telecommunications service through the use of other, nonproprietary unbundled network
elements within the incumbent LEC's network; or
(2) the state commission concludes that the failure of the incumbent LEC to provide
access to the network element would not decrease the quality of, and would not increase
the financial or administrative cost of, the telecommunications service a requesting
telecommunications carrier seeks to offer, compared with providing that service over other
unbundled network elements in the incumbent LEC's network.
51.319 Specific unbundling requirements.
An incumbent LEC shall provide nondiscriminatory access in accordance with
51.311 of this part and section 251(c)(3) of the Act to the following network elements
on an unbundled basis to any requesting telecommunications carrier for the provision of a
telecommunications service:
(a) Local Loop. The local loop network element is defined as a transmission facility between a distribution frame (or its equivalent) in an incumbent LEC central office and an end user customer premises;
(b) Network Interface Device.
(1) The network interface device network element is defined as a cross-connect device
used to connect loop facilities to inside wiring.
(2) An incumbent LEC shall permit a requesting telecommunications carrier to connect
its own local loops to the inside wiring of premises through the incumbent LEC's network
interface device. The requesting telecommunications carrier shall establish this
connection through an adjoining network interface device deployed by such
telecommunications carrier;
(c) Switching Capability.
(1) Local Switching Capability.
(i) The local switching capability network element is defined as:
(A) line-side facilities, which include, but are not limited to, the connection between
a loop termination at a main distribution frame and a switch line card;
(B) trunk-side facilities, which include, but are not limited to, the connection
between trunk termination at a trunk-side cross-connect panel and a switch trunk card; and
(C) all features, functions, and capabilities of the switch, which include, but are not limited to:
(1) the basic switching function of connecting lines to lines, lines to trunks, trunks to lines, and trunks to trunks, as well as the same basic capabilities made available to the incumbent LEC's customers, such as a telephone number, white page listing, and dial tone; and
(2) all other features that the switch is capable of providing,
including but not limited to custom calling, custom local area signaling service features,
and Centrex, as well as any technically feasible customized routing functions provided by
the switch.
(ii) An incumbent LEC shall transfer a customer's local service to a competing carrier within a time period no greater than the interval within which the incumbent LEC currently transfers end users between interexchange carriers, if such transfer requires only a change in the incumbent LEC's software;
(2) Tandem Switching Capability. The tandem switching capability network
element is defined as:
(i) trunk-connect facilities, including but not limited to the connection between trunk
termination at a cross-connect panel and a switch trunk card;
(ii) the basic switching function of connecting trunks to trunks; and
(iii) the functions that are centralized in tandem switches (as distinguished from
separate end-office switches), including but not limited to call recording, the routing of
calls to operator services, and signaling conversion features;
(d) Interoffice Transmission Facilities.
(1) Interoffice transmission facilities are defined as incumbent LEC transmission
facilities dedicated to a particular customer or carrier, or shared by more than one
customer or carrier, that provide telecommunications between wire centers owned by
incumbent LECs or requesting telecommunications carriers, or between switches owned by
incumbent LECs or requesting telecommunications carriers.
(2) The incumbent LEC shall:
(i) provide a requesting telecommunications carrier exclusive use of interoffice
transmission facilities dedicated to a particular customer or carrier, or use of the
features, functions, and capabilities of interoffice transmission facilities shared by
more than one customer or carrier;
(ii) provide all technically feasible transmission facilities, features, functions, and
capabilities that the requesting telecommunications carrier could use to provide
telecommunications services;
(iii) permit, to the extent technically feasible, a requesting telecommunications
carrier to connect such interoffice facilities to equipment designated by the requesting
telecommunications carrier, including, but not limited to, the requesting
telecommunications carrier's collocated facilities; and
(iv) permit, to the extent technically feasible, a requesting telecommunications
carrier to obtain the functionality provided by the incumbent LEC's digital cross-connect
systems in the same manner that the incumbent LEC provides such functionality to
interexchange carriers;
(e) Signaling Networks and Call-Related Databases.
(1) Signaling Networks.
(i) Signaling networks include, but are not limited to, signaling links and signaling
transfer points.
(ii) When a requesting telecommunications carrier purchases unbundled switching
capability from an incumbent LEC, the incumbent LEC shall provide access to its signaling
network from that switch in the same manner in which it obtains such access itself.
(iii) An incumbent LEC shall provide a requesting telecommunications carrier with its
own switching facilities access to the incumbent LEC's signaling network for each of the
requesting telecommunications carrier's switches. This connection shall be made in the
same manner as an incumbent LEC connects one of its own switches to a signal transfer
point.
(iv) Under this paragraph, an incumbent LEC is not required to unbundle those signaling
links that connect service control points to switching transfer points or to permit a
requesting telecommunications carrier to link its own signal transfer points directly to
the incumbent LEC's switch or call-related databases;
(2) Call-Related Databases.
(i) Call-related databases are defined as databases, other than operations support
systems, that are used in signaling networks for billing and collection or the
transmission, routing, or other provision of a telecommunications service.
(ii) For purposes of switch query and database response through a signaling network, an
incumbent LEC shall provide access to its call-related databases, including, but not
limited to, the Line Information Database, Toll Free Calling database, downstream number
portability databases, and Advanced Intelligent Network databases, by means of physical
access at the signaling transfer point linked to the unbundled database.
(iii) An incumbent LEC shall allow a requesting telecommunications carrier that has
purchased an incumbent LEC's local switching capability to use the incumbent LEC's service
control point element in the same manner, and via the same signaling links, as the
incumbent LEC itself.
(iv) An incumbent LEC shall allow a requesting telecommunications carrier that has
deployed its own switch, and has linked that switch to an incumbent LEC's signaling
system, to gain access to the incumbent LEC's service control point in a manner that
allows the requesting carrier to provide any call-related, database-supported services to
customers served by the requesting telecommunications carrier's switch.
(v) A state commission shall consider whether mechanisms mediating access to an
incumbent LEC's Advanced Intelligent Network service control points are necessary, and if
so, whether they will adequately safeguard against intentional or unintentional misuse of
the incumbent LEC's Advanced Intelligent Network facilities.
(vi) An incumbent LEC shall provide a requesting telecommunications carrier with access
to call-related databases in a manner that complies with section 222 of the Act;
(3) Service Management Systems.
(A) A service management system is defined as a computer database or system not part of the public switched network that, among other things:
(1) interconnects to the service control point and sends to that service control point the information and call processing instructions needed for a network switch to process and complete a telephone call; and
(2) provides telecommunications carriers with the capability of
entering and storing data regarding the processing and completing of a telephone call.
(B) An incumbent LEC shall provide a requesting telecommunications carrier with the
information necessary to enter correctly, or format for entry, the information relevant
for input into the particular incumbent LEC service management system.
(C) An incumbent LEC shall provide a requesting telecommunications carrier the same
access to design, create, test, and deploy Advanced Intelligent Network-based services at
the service management system, through a service creation environment, that the incumbent
LEC provides to itself.
(D) A state commission shall consider whether mechanisms mediating access to Advanced
Intelligent Network service management systems and service creation environments are
necessary, and if so, whether they will adequately safeguard against intentional or
unintentional misuse of the incumbent LEC's Advanced Intelligent Network facilities.
(E) An incumbent LEC shall provide a requesting telecommunications carrier access to
service management systems in a manner that complies with section 222 of the Act;
(f) Operations Support Systems Functions.
(1) Operations support systems functions consist of pre-ordering, ordering,
provisioning, maintenance and repair, and billing functions supported by an incumbent
LEC's databases and information.
(2) An incumbent LEC that does not currently comply with this requirement shall do so
as expeditiously as possible, but, in any event, no later than January 1, 1997; and
(g) Operator Services and Directory Assistance. An incumbent LEC shall provide access to operator service and directory assistance facilities where technically feasible.
51.321 Methods of obtaining interconnection and access to unbundled elements
under section 251 of the Act.
(a) Except as provided in paragraph (e) of this section, an incumbent LEC shall
provide, on terms and conditions that are just, reasonable, and nondiscriminatory in
accordance with the requirements of this part, any technically feasible method of
obtaining interconnection or access to unbundled network elements at a particular point
upon a request by a telecommunications carrier.
(b) Technically feasible methods of obtaining interconnection or access to unbundled network elements include, but are not limited to:
(1) physical collocation and virtual collocation at the premises of an incumbent LEC; and
(2) meet point interconnection arrangements.
(c) A previously successful method of obtaining interconnection or access to unbundled
network elements at a particular premises or point on an incumbent LEC's network is
substantial evidence that such method is technically feasible in the case of substantially
similar network premises or points.
(d) An incumbent LEC that denies a request for a particular method of obtaining
interconnection or access to unbundled network elements on the incumbent LEC's network
must prove to the state commission that the requested method of obtaining interconnection
or access to unbundled network elements at that point is not technically feasible.
(e) An incumbent LEC shall not be required to provide for physical collocation of
equipment necessary for interconnection or access to unbundled network elements at the
incumbent LEC's premises if it demonstrates to the state commission that physical
collocation is not practical for technical reasons or because of space limitations. In
such cases, the incumbent LEC shall be required to provide virtual collocation, except at
points where the incumbent LEC proves to the state commission that virtual collocation is
not technically feasible. If virtual collocation is not technically feasible, the
incumbent LEC shall provide other methods of interconnection and access to unbundled
network elements to the extent technically feasible.
(f) An incumbent LEC shall submit to the state commission detailed floor plans or
diagrams of any premises where the incumbent LEC claims that physical collocation is not
practical because of space limitations.
(g) An incumbent LEC that is classified as a Class A company under 32.11 of this
chapter and that is not a National Exchange Carrier Association interstate tariff
participant as provided in part 69, subpart G, shall continue to provide expanded
interconnection service pursuant to interstate tariff in accordance with 64.1401, 64.1402,
69.121 of this chapter, and the Commission's other requirements.
51.323 Standards for physical collocation and virtual collocation.
(a) An incumbent LEC shall provide physical collocation and virtual collocation to
requesting telecommunications carriers.
(b) An incumbent LEC shall permit the collocation of any type of equipment used for interconnection or access to unbundled network elements. Whenever an incumbent LEC objects to collocation of equipment by a requesting telecommunications carrier for purposes within the scope of section 251(c)(6) of the Act, the incumbent LEC shall prove to the state commission that the equipment will not be actually used by the telecommunications carrier for the purpose of obtaining interconnection or access to unbundled network elements. Equipment used for interconnection and access to unbundled network elements includes, but is not limited to:
(1) transmission equipment including, but not limited to, optical terminating equipment and multiplexers; and
(2) equipment being collocated to terminate basic transmission facilities pursuant to
64.1401 and 64.1402 of this chapter as of August 1, 1996.
(c) Nothing in this section requires an incumbent LEC to permit collocation of
switching equipment or equipment used to provide enhanced services.
(d) When an incumbent LEC provides physical collocation, virtual collocation, or both, the incumbent LEC shall:
(1) provide an interconnection point or points, physically accessible by both the incumbent LEC and the collocating telecommunications carrier, at which the fiber optic cable carrying an interconnector's circuits can enter the incumbent LEC's premises, provided that the incumbent LEC shall designate interconnection points as close as reasonably possible to its premises;
(2) provide at least two such interconnection points at each incumbent LEC premises at which there are at least two entry points for the incumbent LEC's cable facilities, and at which space is available for new facilities in at least two of those entry points;
(3) permit interconnection of copper or coaxial cable if such interconnection is first approved by the state commission; and
(4) permit physical collocation of microwave transmission facilities except where such
collocation is not practical for technical reasons or because of space limitations, in
which case virtual collocation of such facilities is required where technically feasible.
(e) When providing virtual collocation, an incumbent LEC shall, at a minimum, install,
maintain, and repair collocated equipment identified in paragraph (b) of this section
within the same time periods and with failure rates that are no greater than those that
apply to the performance of similar functions for comparable equipment of the incumbent
LEC itself.
(f) An incumbent LEC shall allocate space for the collocation of the equipment identified in paragraph (b) of this section in accordance with the following requirements:
(1) an incumbent LEC shall make space available within or on its premises to requesting telecommunications carriers on a first-come, first-served basis, provided, however, that the incumbent LEC shall not be required to lease or construct additional space to provide for physical collocation when existing space has been exhausted;
(2) to the extent possible, an incumbent LEC shall make contiguous space available to requesting telecommunications carriers that seek to expand their existing collocation space;
(3) when planning renovations of existing facilities or constructing or leasing new facilities, an incumbent LEC shall take into account projected demand for collocation of equipment;
(4) an incumbent LEC may retain a limited amount of floor space for its own specific future uses, provided, however, that the incumbent LEC may not reserve space for future use on terms more favorable than those that apply to other telecommunications carriers seeking to reserve collocation space for their own future use;
(5) an incumbent LEC shall relinquish any space held for future use before denying a request for virtual collocation on the grounds of space limitations, unless the incumbent LEC proves to the state commission that virtual collocation at that point is not technically feasible; and
(6) an incumbent LEC may impose reasonable restrictions on the warehousing of unused
space by collocating telecommunications carriers, provided, however, that the incumbent
LEC shall not set maximum space limitations applicable to such carriers unless the
incumbent LEC proves to the state commission that space constraints make such restrictions
necessary.
(g) An incumbent LEC shall permit collocating telecommunications carriers to collocate
equipment and connect such equipment to unbundled network transmission elements obtained
from the incumbent LEC, and shall not require such telecommunications carriers to bring
their own transmission facilities to the incumbent LEC's premises in which they seek to
collocate equipment.
(h) An incumbent LEC shall permit a collocating telecommunications carrier to interconnect its network with that of another collocating telecommunications carrier at the incumbent LEC's premises and to connect its collocated equipment to the collocated equipment of another telecommunications carrier within the same premises provided that the collocated equipment is also used for interconnection with the incumbent LEC or for access to the incumbent LEC's unbundled network elements.
(1) An incumbent LEC shall provide the connection between the equipment in the collocated spaces of two or more telecommunications carriers, unless the incumbent LEC permits one or more of the collocating parties to provide this connection for themselves; and
(2) An incumbent LEC is not required to permit collocating telecommunications carriers
to place their own connecting transmission facilities within the incumbent LEC's premises
outside of the actual physical collocation space.
(i) An incumbent LEC may require reasonable security arrangements to separate a
collocating telecommunications carrier's space from the incumbent LEC's facilities.
(j) An incumbent LEC shall permit a collocating telecommunications carrier to
subcontract the construction of physical collocation arrangements with contractors
approved by the incumbent LEC, provided, however, that the incumbent LEC shall not
unreasonably withhold approval of contractors. Approval by an incumbent LEC shall be based
on the same criteria it uses in approving contractors for its own purposes.
Subpart E - Exemptions, Suspensions, and Modifications of Requirements of
Section 251 of the Act.
51.401 State authority.
A state commission shall determine whether a telephone company is entitled, pursuant to
section 251(f) of the Act, to exemption from, or suspension or modification of, the
requirements of section 251 of the Act. Such determinations shall be made on a
case-by-case basis.
51.403 Carriers eligible for suspension or modification under section 251(f)(2)
of the Act.
A LEC is not eligible for a suspension or modification of the requirements of section
251(b) or section 251(c) of the Act pursuant to section 251(f)(2) of the Act if such LEC,
at the holding company level, has two percent or more of the subscriber lines installed in
the aggregate nationwide.
51.405 Burden of proof.
(a) Upon receipt of a bona fide request for interconnection, services, or access to
unbundled network elements, a rural telephone company must prove to the state commission
that the rural telephone company should be entitled, pursuant to section 251(f)(1) of the
Act, to continued exemption from the requirements of section 251(c) of the Act.
(b) A LEC with fewer than two percent of the nation's subscriber lines installed in the
aggregate nationwide must prove to the state commission, pursuant to section 251(f)(2) of
the Act, that it is entitled to a suspension or modification of the application of a
requirement or requirements of section 251(b) or 251(c) of the Act.
(c) In order to justify continued exemption under section 251(f)(1) of the Act once a
bona fide request has been made, an incumbent LEC must offer evidence that the application
of the requirements of section 251(c) of the Act would be likely to cause undue economic
burden beyond the economic burden that is typically associated with efficient competitive
entry.
(d) In order to justify a suspension or modification under section 251(f)(2) of the
Act, a LEC must offer evidence that the application of section 251(b) or section 251(c) of
the Act would be likely to cause undue economic burden beyond the economic burden that is
typically associated with efficient competitive entry.
Subpart F - Pricing of Elements.
51.501 Scope.
(a) The rules in this subpart apply to the pricing of network elements,
interconnection, and methods of obtaining access to unbundled elements, including physical
collocation and virtual collocation.
(b) As used in this subpart, the term "element" includes network elements,
interconnection, and methods of obtaining interconnection and access to unbundled
elements.
51.503 General pricing standard.
(a) An incumbent LEC shall offer elements to requesting telecommunications carriers at
rates, terms, and conditions that are just, reasonable, and nondiscriminatory.
(b) An incumbent LEC's rates for each element it offers shall comply with the rate structure rules set forth in 51.507 and 51.509 of this part, and shall be established, at the election of the state commission--
(1) pursuant to the forward-looking economic cost-based pricing methodology set forth in 51.505 and 51.511 of this part; or
(2) consistent with the proxy ceilings and ranges set forth in 51.513 of this part.
(c) The rates that an incumbent LEC assesses for elements shall not vary on the basis
of the class of customers served by the requesting carrier, or on the type of services
that the requesting carrier purchasing such elements uses them to provide.
51.505 Forward-looking economic cost.
(a) In general. The forward-looking economic cost of an element equals the sum of:
(1) the total element long-run incremental cost of the element, as described in paragraph (b); and
(2) a reasonable allocation of forward-looking common costs, as described in paragraph
(c).
(b) Total element long-run incremental cost. The total element long-run incremental cost of an element is the forward-looking cost over the long run of the total quantity of the facilities and functions that are directly attributable to, or reasonably identifiable as incremental to, such element, calculated taking as a given the incumbent LEC's provision of other elements.
(1) Efficient network configuration. The total element long-run incremental cost of an element should be measured based on the use of the most efficient telecommunications technology currently available and the lowest cost network configuration, given the existing location of the incumbent LEC's wire centers.
(2) Forward-looking cost of capital. The forward-looking cost of capital shall be used in calculating the total element long-run incremental cost of an element.
(3) Depreciation rates. The depreciation rates used in calculating
forward-looking economic costs of elements shall be economic depreciation rates.
(c) Reasonable allocation of forward-looking common costs.
(1) Forward-looking common costs. Forward-looking common costs are economic costs efficiently incurred in providing a group of elements or services (which may include all elements or services provided by the incumbent LEC) that cannot be attributed directly to individual elements or services.
(2) Reasonable allocation.
(A) The sum of a reasonable allocation of forward-looking common costs and the total element long-run incremental cost of an element shall not exceed the stand-alone costs associated with the element. In this context, stand-alone costs are the total forward-looking costs, including corporate costs, that would be incurred to produce a given element if that element were provided by an efficient firm that produced nothing but the given element.
(B) The sum of the allocation of forward-looking common costs for all elements and
services shall equal the total forward-looking common costs, exclusive of retail costs,
attributable to operating the incumbent LEC's total network, so as to provide all the
elements and services offered.
(d) Factors that may not be considered. The following factors shall not be considered in a calculation of the forward-looking economic cost of an element:
(1) Embedded costs. Embedded costs are the costs that the incumbent LEC incurred in the past and that are recorded in the incumbent LEC's books of accounts.
(2) Retail costs. Retail costs include the costs of marketing, billing, collection, and other costs associated with offering retail telecommunications services to subscribers who are not telecommunications carriers, described in 51.609 of this part.
(3) Opportunity costs. Opportunity costs include the revenues that the incumbent LEC would have received for the sale of telecommunications services, in the absence of competition from telecommunications carrier that purchase elements.
(4) Revenues to subsidize other services. Revenues to subsidize other
services include revenues associated with elements or telecommunications service offerings
other than the element for which a rate is being established.
(e) Cost study requirements. An incumbent LEC must prove to the state commission that the rates for each element it offers do not exceed the forward-looking economic cost per unit of providing the element, using a cost study that complies with the methodology set forth in this section and 51.511 of this part.
(1) A state commission may set a rate outside the proxy ranges or above the proxy ceilings described in 51.513 of this part only if that commission has given full and fair effect to the economic cost based pricing methodology described in this section and 51.511 of this part in a state proceeding that meets the requirements of paragraph (e)(2) of this section.
(2) Any state proceeding conducted pursuant to this section shall provide notice and an
opportunity for comment to affected parties and shall result in the creation of a written
factual record that is sufficient for purposes of review. The record of any state
proceeding in which a state commission considers a cost study for purposes of establishing
rates under this section shall include any such cost study.
51.507 General rate structure standard.
(a) Element rates shall be structured consistently with the manner in which the costs
of providing the elements are incurred.
(b) The costs of dedicated facilities shall be recovered through flat-rated charges.
(c) The costs of shared facilities shall be recovered in a manner that efficiently
apportions costs among users. Costs of shared facilities may be apportioned either through
usage-sensitive charges or capacity-based flat-rated charges, if the state commission
finds that such rates reasonably reflect the costs imposed by the various users.
(d) Recurring costs shall be recovered through recurring charges, unless an incumbent
LEC proves to a state commission that such recurring costs are de minimis. Recurring costs
shall be considered de minimis when the costs of administering the recurring charge would
be excessive in relation to the amount of the recurring costs.
(e) State commissions may, where reasonable, require incumbent LECs to recover
nonrecurring costs through recurring charges over a reasonable period of time.
Nonrecurring charges shall be allocated efficiently among requesting telecommunications
carriers, and shall not permit an incumbent LEC to recover more than the total
forward-looking economic cost of providing the applicable element.
(f) State commissions shall establish different rates for elements in at least three defined geographic areas within the state to reflect geographic cost differences.
(1) To establish geographically-deaveraged rates, state commissions may use existing density-related zone pricing plans described in 69.123 of this chapter, or other such cost-related zone plans established pursuant to state law.
(2) In states not using such existing plans, state commissions must create a minimum of
three cost-related rate zones.
51.509 Rate structure standards for specific elements.
In addition to the general rules set forth in 51.507 of this part, rates for specific
elements shall comply with the following rate structure rules.
(a) Local loops. Loop costs shall be recovered through flat-rated
charges.
(b) Local switching. Local switching costs shall be recovered through a
combination of a flat-rated charge for line ports and one or more flat-rated or per-minute
usage charges for the switching matrix and for trunk ports.
(c) Dedicated transmission links. Dedicated transmission link costs
shall be recovered through flat-rated charges.
(d) Shared transmission facilities between tandem switches and end offices.
The costs of shared transmission facilities between tandem switches and end offices may be
recovered through usage-sensitive charges, or in another manner consistent with the manner
that the incumbent LEC incurs those costs.
(e) Tandem switching. Tandem switching costs may be recovered through
usage-sensitive charges, or in another manner consistent with the manner that the
incumbent LEC incurs those costs.
(f) Signaling and call-related database services. Signaling and
call-related database service costs shall be usage-sensitive, based on either the number
of queries or the number of messages, with the exception of the dedicated circuits known
as signaling links, the cost of which shall be recovered through flat-rated charges.
(g) Collocation. Collocation costs shall be recovered consistent with
the rate structure policies established in the Expanded Interconnection proceeding,
CC Docket No. 91-141.
51.511 Forward-looking economic cost per unit.
(a) The forward-looking economic cost per unit of an element equals the forward-looking
economic cost of the element, as defined in 51.505 of this part, divided by a reasonable
projection of the sum of the total number of units of the element that the incumbent LEC
is likely to provide to requesting telecommunications carriers and the total number of
units of the element that the incumbent LEC is likely to use in offering its own services,
during a reasonable measuring period.
(b) (1) With respect to elements that an incumbent LEC offers on a flat-rate basis, the number of units is defined as the discrete number of elements (e.g., local loops or local switch ports) that the incumbent LEC uses or provides.
(2) With respect to elements that an incumbent LEC offers on a usage-sensitive basis,
the number of units is defined as the unit of measurement of the usage (e.g.,
minutes of use or call-related database queries) of the element.
51.513 Proxies for forward-looking economic cost.
(a) A state commission may determine that the cost information available to it with respect to one or more elements does not support the adoption of a rate or rates that are consistent with the requirements set forth in 51.505 and 51.511 of this part. In that event, the state commission may establish a rate for an element that is consistent with the proxies specified in this section, provided that:
(1) any rate established through use of such proxies shall be superseded once the state commission has completed review of a cost study that complies with the forward-looking economic cost based pricing methodology described in 51.505 and 51.511 of this part, and has concluded that such study is a reasonable basis for establishing element rates; and
(2) the state commission sets forth in writing a reasonable basis for its selection of
a particular rate for the element.
(b) The constraints on proxy-based rates described in this section apply on a
geographically averaged basis. For purposes of determining whether geographically
deaveraged rates for elements comply with the provisions of this section, a geographically
averaged proxy-based rate shall be computed based on the weighted average of the actual,
geographically deaveraged rates that apply in separate geographic areas in a state.
(c) Proxies for specific elements.
(1) Local loops. For each state listed below, the proxy-based monthly
rate for unbundled local loops, on a statewide weighted average basis, shall be no greater
than the figures listed in the table below. (The Commission has not established a default
proxy ceiling for loop rates in Alaska).
Table A
State Proxy Ceiling State Proxy Ceiling
Alabama $17.25
Arizona $12.85
Arkansas $21.18
California $11.10
Colorado $14.97
Connecticut $13.23
Delaware $13.24
District of Columbia $10.81
Florida $13.68
Georgia $16.09
Hawaii $15.27
Idaho $20.16
Illinois $13.12
Indiana $13.29
Iowa $15.94
Kansas $19.85
Kentucky $16.70
Louisiana $16.98
Maine $18.69
Maryland $13.36
Massachusetts $9.83
Michigan $15.27
Minnesota $14.81
Mississippi $21.97
Missouri $18.32
Montana $25.18
Nebraska $18.05
Nevada $18.95
New Hampshire $16.00
New Jersey $12.47
New Mexico $18.66
New York $11.75
North Carolina $16.71
North Dakota $25.36
Ohio $15.73
Oklahoma $17.63
Oregon $15.44
Pennsylvania $12.30
Puerto Rico $12.47
Rhode Island $11.48
South Carolina $17.07
South Dakota $25.33
Tennessee $17.41
Texas $15.49
Utah $15.12
Vermont $20.13
Virginia $14.13
Washington $13.37
West Virginia $19.25
Wisconsin $15.94
Wyoming $25.11
(2) Local switching. The blended proxy-based rate for unbundled local switching shall be no greater than 0.4 cents ($0.004) per minute, and no less than 0.2 cents ($0.002) per minute, except that, where a state commission has, before August 8, 1996, established a rate less than or equal to 0.5 cents ($0.005) per minute, that rate may be retained pending completion of a forward-looking economic cost study. The blended rate for unbundled local switching shall be calculated as the sum of the following:
(A) the applicable flat-rated charges for subelements associated with unbundled local switching, such as line ports, divided by the projected average minutes of use per flat-rated subelement; and
(B) the applicable usage-sensitive charges for subelements associated with unbundled
local switching, such as switching and trunk ports. A weighted average of such charges
shall be used in appropriate circumstances, such as when peak and off-peak charges are
used.
(3) Dedicated transmission links. The proxy-based rates for dedicated
transmission links shall be no greater than the incumbent LEC's tariffed interstate
charges for comparable entrance facilities or direct-trunked transport offerings, as
described in 69.110 and 69.112 of this chapter.
(4) Shared transmission facilities between tandem switches and end offices.
The proxy-based rates for shared transmission facilities between tandem switches and end
offices shall be no greater than the weighted per-minute equivalent of DS1 and DS3
interoffice dedicated transmission link rates that reflects the relative number of DS1 and
DS3 circuits used in the tandem to end office links (or a surrogate based on the
proportion of copper and fiber facilities in the interoffice network), calculated using a
loading factor of 9,000 minutes per month per voice-grade circuit, as described in 69.112
of this chapter.
(5) Tandem switching. The proxy-based rate for tandem switching shall
be no greater than 0.15 cents ($0.0015) per minute of use.
(6) Collocation. To the extent that the incumbent LEC offers a
comparable form of collocation in its interstate expanded interconnection tariffs, as
described in 64.1401 and 69.121 of this chapter, the proxy-based rates for collocation
shall be no greater than the effective rates for equivalent services in the interstate
expanded interconnection tariff. To the extent that the incumbent LEC does not offer a
comparable form of collocation in its interstate expanded interconnection tariffs, a state
commission may, in its discretion, establish a proxy-based rate, provided that the state
commission sets forth in writing a reasonable basis for concluding that its rate would
approximate the result of a forward-looking economic cost study, as described in 51.505 of
this part.
(7) Signaling, call-related database, and other elements. To the extent
that the incumbent LEC has established rates for offerings comparable to other elements in
its interstate access tariffs, and has provided cost support for those rates pursuant to
61.49(h) of this chapter, the proxy-based rates for those elements shall be no greater
than the effective rates for equivalent services in the interstate access tariffs. In
other cases, the proxy-based rate shall be no greater than a rate based on direct costs
plus a reasonable allocation of overhead loadings, pursuant to 61.49(h) of this chapter.
51.515 Application of access charges.
(a) Neither the interstate access charges described in part 69 nor comparable
intrastate access charges shall be assessed by an incumbent LEC on purchasers of elements
that offer telephone exchange or exchange access services.
(b) Notwithstanding 51.505, 51.511, and 51.513(d)(2) of this part and paragraph (a) of this section, an incumbent LEC may assess upon telecommunications carriers that purchase unbundled local switching elements, as described in 51.319(c)(1) of this part, for interstate minutes of use traversing such unbundled local switching elements, the carrier common line charge described in 69.105 of this chapter, and a charge equal to 75% of the interconnection charge described in 69.124 of this chapter, only until the earliest of the following, and not thereafter:
(1) June 30, 1997;
(2) the later of the effective date of a final Commission decision in CC Docket No. 96-45, Federal-State Joint Board on Universal Service, or the effective date of a final Commission decision in a proceeding to consider reform of the interstate access charges described in part 69; or
(3) with respect to a Bell operating company only, the date on which that company is
authorized to offer in-region interLATA service in a state pursuant to section 271 of the
Act. The end date for Bell operating companies that are authorized to offer interLATA
service shall apply only to the recovery of access charges in those states in which the
Bell operating company is authorized to offer such service.
(c) Notwithstanding 51.505, 51.511, and 51.513(d)(2) of this part and paragraph (a) of this section, an incumbent LEC may assess upon telecommunications carriers that purchase unbundled local switching elements, as described in 51.319(c)(1) of this part, for intrastate toll minutes of use traversing such unbundled local switching elements, intrastate access charges comparable to those listed in paragraph (b) and any explicit intrastate universal service mechanism based on access charges, only until the earliest of the following, and not thereafter:
(1) June 30, 1997;
(2) the effective date of a state commission decision that an incumbent LEC may not assess such charges; or
(3) with respect to a Bell operating company only, the date on which that company is
authorized to offer in-region interLATA service in the state pursuant to section 271 of
the Act. The end date for Bell operating companies that are authorized to offer interLATA
service shall apply only to the recovery of access charges in those states in which the
Bell operating company is authorized to offer such service.
Subpart G - Resale.
51.601 Scope of resale rules.
The provisions of this subpart govern the terms and conditions under which LECs offer
telecommunications services to requesting telecommunications carriers for resale.
51.603 Resale obligation of all local exchange carriers.
(a) A LEC shall make its telecommunications services available for resale to requesting
telecommunications carriers on terms and conditions that are reasonable and
non-discriminatory.
(b) A LEC must provide services to requesting telecommunications carriers for resale
that are equal in quality, subject to the same conditions, and provided within the same
provisioning time intervals that the LEC provides these services to others, including end
users.
51.605 Additional obligations of incumbent local exchange carriers.
(a) An incumbent LEC shall offer to any requesting telecommunications carrier any telecommunications service that the incumbent LEC offers on a retail basis to subscribers that are not telecommunications carriers for resale at wholesale rates that are at the election of the state commission--
(1) consistent with the avoided cost methodology described in 51.607 and 51.609 of this part; or
(2) interim wholesale rates, pursuant to 51.611 of this part,
(b) Except as provided in 51.613 of this part, an incumbent LEC shall not impose
restrictions on the resale by a requesting carrier of telecommunications services offered
by the incumbent LEC.
51.607 Wholesale pricing standard.
(a) The wholesale rate that an incumbent LEC may charge for a telecommunications
service provided for resale to other telecommunications carriers shall equal the incumbent
LEC's existing retail rate for the telecommunications service, less avoided retail costs,
as described in 51.609 of this part.
(b) For purposes of this subpart, exchange access services, as defined in section 3 of
the Act, shall not be considered to be telecommunications services that incumbent LECs
must make available for resale at wholesale rates to requesting telecommunications
carriers.
51.609 Determination of avoided retail costs.
(a) Except as provided in 51.611 of this part, the amount of avoided retail costs shall
be determined on the basis of a cost study that complies with the requirements of this
section.
(b) Avoided retail costs shall be those costs that reasonably can be avoided when an
incumbent LEC provides a telecommunications service for resale at wholesale rates to a
requesting carrier.
(c) For incumbent LECs that are designated as Class A companies under 32.11 of this chapter, except as provided in paragraph (d), avoided retail costs shall:
(1) include, as direct costs, the costs recorded in USOA accounts 6611 (product management), 6612 (sales), 6613 (product advertising), 6621 (call completion services), 6622 (number services), and 6623 (customer services) ( 32.6611, 32.6612, 32.6613, 32.6621, 32.6622, and 32.6623);
(2) include, as indirect costs, a portion of the costs recorded in USOA accounts 6121-6124 (general support expenses), 6612, 6711, 6721-6728 (corporate operations expenses), and 5301 (telecommunications uncollectibles) ( 32.6121-32.6124, 32.6612, 32.6711, 32.6721-32.6728, and 32.5301); and
(3) not include plant-specific expenses and plant non-specific expenses, other than
general support expenses ( 32.6110-32.6116, 32.6210-32.6565).
(d) Costs included in accounts 6611-6613 and 6621-6623 described in paragraph (c) (
32.6611-32.6613 and 32.6621-32.6623) may be included in wholesale rates only to the extent
that the incumbent LEC proves to a state commission that specific costs in these accounts
will be incurred and are not avoidable with respect to services sold at wholesale, or that
specific costs in these accounts are not included in the retail prices of resold services.
Costs included in accounts 6110-6116 and 6210-6565 described in paragraph (c) (
32.6110-32.6116, 32.6210-32.6565) may be treated as avoided retail costs, and excluded
from wholesale rates, only to the extent that a party proves to a state commission that
specific costs in these accounts can reasonably be avoided when an incumbent LEC provides
a telecommunications service for resale to a requesting carrier.
(e) For incumbent LECs that are designated as Class B companies under 32.11 of this
chapter and that record information in summary accounts instead of specific USOA accounts,
the entire relevant summary accounts may be used in lieu of the specific USOA accounts
listed in paragraphs (c) and (d).
51.611 Interim wholesale rates.
(a) If a state commission cannot, based on the information available to it, establish a
wholesale rate using the methodology prescribed in 51.609 of this part, then the state
commission may elect to establish an interim wholesale rate as described in paragraph (b)
of this section.
(b) The state commission may establish interim wholesale rates that are at least 17
percent, and no more than 25 percent, below the incumbent LEC's existing retail rates, and
shall articulate the basis for selecting a particular discount rate. The same discount
percentage rate shall be used to establish interim wholesale rates for each
telecommunications service.
(c) A state commission that establishes interim wholesale rates shall, within a
reasonable period of time thereafter, establish wholesale rates on the basis of an avoided
retail cost study that complies with 51.609 of this part.
51.613 Restrictions on resale.
(a) Notwithstanding 51.605(b) of this part, the following types of restrictions on
resale may be imposed:
(1) Cross-class selling. A state commission may permit an incumbent LEC
to prohibit a requesting telecommunications carrier that purchases at wholesale rates for
resale, telecommunications services that the incumbent LEC makes available only to
residential customers or to a limited class of residential customers, from offering such
services to classes of customers that are not eligible to subscribe to such services from
the incumbent LEC.
(2) Short term promotions. An incumbent LEC shall apply the wholesale discount to the ordinary rate for a retail service rather than a special promotional rate only if:
(A) such promotions involve rates that will be in effect for no more than 90 days; and
(B) the incumbent LEC does not use such promotional offerings to evade the wholesale
rate obligation, for example by making available a sequential series of 90-day promotional
rates.
(b) With respect to any restrictions on resale not permitted under paragraph (a), an
incumbent LEC may impose a restriction only if it proves to the state commission that the
restriction is reasonable and nondiscriminatory.
(c) Branding. Where operator, call completion, or directory assistance
service is part of the service or service package an incumbent LEC offers for resale,
failure by an incumbent LEC to comply with reseller unbranding or rebranding requests
shall constitute a restriction on resale.
(1) An incumbent LEC may impose such a restriction only if it proves to the state
commission that the restriction is reasonable and nondiscriminatory, such as by proving to
a state commission that the incumbent LEC lacks the capability to comply with unbranding
or rebranding requests.
(2) For purposes of this subpart, unbranding or rebranding shall mean that operator,
call completion, or directory assistance services are offered in such a manner that an
incumbent LEC's brand name or other identifying information is not identified to
subscribers, or that such services are offered in such a manner that identifies to
subscribers the requesting carrier's brand name or other identifying information.
51.615 Withdrawal of services.
When an incumbent LEC makes a telecommunications service available only to a limited
group of customers that have purchased such a service in the past, the incumbent LEC must
also make such a service available at wholesale rates to requesting carriers to offer on a
resale basis to the same limited group of customers that have purchased such a service in
the past.
51.617 Assessment of end user common line charge on resellers.
(a) Notwithstanding the provision in 69.104(a) of this chapter that the end user common
line charge be assessed upon end users, an incumbent LEC shall assess this charge, and the
charge for changing the designated primary interexchange carrier, upon requesting carriers
that purchase telephone exchange service for resale. The specific end user common line
charge to be assessed will depend upon the identity of the end user served by the
requesting carrier.
(b) When an incumbent LEC provides telephone exchange service to a requesting carrier
at wholesale rates for resale, the incumbent LEC shall continue to assess the interstate
access charges provided in part 69, other than the end user common line charge, upon
interexchange carriers that use the incumbent LEC's facilities to provide interstate or
international telecommunications services to the interexchange carriers' subscribers.
Subpart H - Reciprocal Compensation for Transport and Termination of
Local Telecommunications Traffic.
51.701 Scope of transport and termination pricing rules.
(a) The provisions of this subpart apply to reciprocal compensation for transport and
termination of local telecommunications traffic between LECs and other telecommunications
carriers.
(b) Local telecommunications traffic. For purposes of this subpart, local telecommunications traffic means:
(1) telecommunications traffic between a LEC and a telecommunications carrier other than a CMRS provider that originates and terminates within a local service area established by the state commission; or
(2) telecommunications traffic between a LEC and a CMRS provider that, at the beginning
of the call, originates and terminates within the same Major Trading Area, as defined in
24.202(a) of this chapter.
(c) Transport. For purposes of this subpart, transport is the
transmission and any necessary tandem switching of local telecommunications traffic
subject to section 251(b)(5) of the Act from the interconnection point between the two
carriers to the terminating carrier's end office switch that directly serves the called
party, or equivalent facility provided by a carrier other than an incumbent LEC.
(d) Termination. For purposes of this subpart, termination is the
switching of local telecommunications traffic at the terminating carrier's end office
switch, or equivalent facility, and delivery of such traffic to the called party's
premises.
(e) Reciprocal compensation. For purposes of this subpart, a reciprocal compensation arrangement between two carriers is one in which each of the two carriers receives compensation from the other carrier for the transport and termination on each carrier's network facilities of local telecommunications traffic that originates on the network facilities of the other carrier.
51.703 Reciprocal compensation obligation of LECs.
(a) Each LEC shall establish reciprocal compensation arrangements for transport and
termination of local telecommunications traffic with any requesting telecommunications
carrier.
(b) A LEC may not assess charges on any other telecommunications carrier for local
telecommunications traffic that originates on the LEC's network.
51.705 Incumbent LECs' rates for transport and termination.
(a) An incumbent LEC's rates for transport and termination of local telecommunications traffic shall be established, at the election of the state commission, on the basis of:
(1) the forward-looking economic costs of such offerings, using a cost study pursuant to 51.505 and 51.511 of this part;
(2) default proxies, as provided in 51.707 of this part; or
(3) a bill-and-keep arrangement, as provided in 51.713 of this part.
(b) In cases where both carriers in a reciprocal compensation arrangement are incumbent
LECs, state commissions shall establish the rates of the smaller carrier on the basis of
the larger carrier's forward-looking costs, pursuant to 51.711 of this part.
51.707 Default proxies for incumbent LECs' transport and
termination rates.
(a) A state commission may determine that the cost information available to it with respect to transport and termination of local telecommunications traffic does not support the adoption of a rate or rates for an incumbent LEC that are consistent with the requirements of 51.505 and 51.511 of this part. In that event, the state commission may establish rates for transport and termination of local telecommunications traffic, or for specific components included therein, that are consistent with the proxies specified in this section, provided that:
(1) any rate established through use of such proxies is superseded once that state commission establishes rates for transport and termination pursuant to 51.705(a)(1) or 51.705(a)(3) of this part; and
(2) the state commission sets forth in writing a reasonable basis for its selection of
a particular proxy for transport and termination of local telecommunications traffic, or
for specific components included within transport and termination.
(b) If a state commission establishes rates for transport and termination of local telecommunications traffic on the basis of default proxies, such rates must meet the following requirements:
(1) Termination. The incumbent LEC's rates for the termination of local telecommunications traffic shall be no greater than 0.4 cents ($0.004) per minute, and no less than 0.2 cents ($0.002) per minute, except that, if a state commission has, before August 8, 1996, established a rate less than or equal to 0.5 cents ($0.005) per minute for such calls, that rate may be retained pending completion of a forward-looking economic cost study.
(2) Transport. The incumbent LEC's rates for the transport of local
telecommunications traffic, under this section, shall comply with the proxies described in
51.513(d)(3), (4), and (5) of this part that apply to the analogous unbundled network
elements used in transporting a call to the end office that serves the called party.
51.709 Rate structure for transport and termination.
(a) In state proceedings, a state commission shall establish rates for the transport
and termination of local telecommunications traffic that are structured consistently with
the manner that carriers incur those costs, and consistently with the principles in 51.507
and 51.509 of this part.
(b) The rate of a carrier providing transmission facilities dedicated to the
transmission of traffic between two carriers' networks shall recover only the costs of the
proportion of that trunk capacity used by an interconnecting carrier to send traffic that
will terminate on the providing carrier's network. Such proportions may be measured during
peak periods.
51.711 Symmetrical reciprocal compensation.
(a) Rates for transport and termination of local telecommunications traffic shall be symmetrical, except as provided in paragraphs (b) and (c).
(1) For purposes of this subpart, symmetrical rates are rates that a carrier other than an incumbent LEC assesses upon an incumbent LEC for transport and termination of local telecommunications traffic equal to those that the incumbent LEC assesses upon the other carrier for the same services.
(2) In cases where both parties are incumbent LECs, or neither party is an incumbent LEC, a state commission shall establish the symmetrical rates for transport and termination based on the larger carrier's forward-looking costs.
(3) Where the switch of a carrier other than an incumbent LEC serves a geographic area
comparable to the area served by the incumbent LEC's tandem switch, the appropriate rate
for the carrier other than an incumbent LEC is the incumbent LEC's tandem interconnection
rate.
(b) A state commission may establish asymmetrical rates for transport and termination
of local telecommunications traffic only if the carrier other than the incumbent LEC (or
the smaller of two incumbent LECs) proves to the state commission on the basis of a cost
study using the forward-looking economic cost based pricing methodology described in
51.505 and 51.511 of this part, that the forward-looking costs for a network efficiently
configured and operated by the carrier other than the incumbent LEC (or the smaller of two
incumbent LECs), exceed the costs incurred by the incumbent LEC (or the larger incumbent
LEC), and, consequently, that such that a higher rate is justified.
(c) Pending further proceedings before the Commission, a state commission shall
establish the rates that licensees in the Paging and Radiotelephone Service (defined in
part 22, subpart E of this chapter), Narrowband Personal Communications Services (defined
in part 24, subpart D of this chapter), and Paging Operations in the Private Land Mobile
Radio Services (defined in part 90, subpart P of this chapter) may assess upon other
carriers for the transport and termination of local telecommunications traffic based on
the forward-looking costs that such licensees incur in providing such services, pursuant
to 51.505 and 51.511 of this part. Such licensees' rates shall not be set based on the
default proxies described in 51.707 of this part.
51.713 Bill-and-keep arrangements for reciprocal compensation.
(a) For purposes of this subpart, bill-and-keep arrangements are those in which neither
of the two interconnecting carriers charges the other for the termination of local
telecommunications traffic that originates on the other carrier's network.
(b) A state commission may impose bill-and-keep arrangements if the state commission
determines that the amount of local telecommunications traffic from one network to the
other is roughly balanced with the amount of local telecommunications traffic flowing in
the opposite direction, and is expected to remain so, and no showing has been made
pursuant to 51.711(b) of this part.
(c) Nothing in this section precludes a state commission from presuming that the amount
of local telecommunications traffic from one network to the other is roughly balanced with
the amount of local telecommunications traffic flowing in the opposite direction and is
expected to remain so, unless a party rebuts such a presumption.
51.715 Interim transport and termination pricing.
(a) Upon request from a telecommunications carrier without an existing interconnection arrangement with an incumbent LEC, the incumbent LEC shall provide transport and termination of local telecommunications traffic immediately under an interim arrangement, pending resolution of negotiation or arbitration regarding transport and termination rates and approval of such rates by a state commission under sections 251 and 252 of the Act.
(1) This requirement shall not apply when the requesting carrier has an existing interconnection arrangement that provides for the transport and termination of local telecommunications traffic by the incumbent LEC.
(2) A telecommunications carrier may take advantage of such an interim arrangement only
after it has requested negotiation with the incumbent LEC pursuant to 51.301 of this part.
(b) Upon receipt of a request as described in paragraph (a), an incumbent LEC must, without unreasonable delay, establish an interim arrangement for transport and termination of local telecommunications traffic at symmetrical rates.
(1) In a state in which the state commission has established transport and termination rates based on forward-looking economic cost studies, an incumbent LEC shall use these state-determined rates as interim transport and termination rates.
(2) In a state in which the state commission has established transport and termination rates consistent with the default price ranges and ceilings described in 51.707 of this part, an incumbent LEC shall use these state-determined rates as interim rates.
(3) In a state in which the state commission has neither established transport and
termination rates based on forward-looking economic cost studies nor established transport
and termination rates consistent with the default price ranges described in 51.707 of this
part, an incumbent LEC shall set interim transport and termination rates at the default
ceilings for end-office switching (0.4 cents per minute of use), tandem switching (0.15
cents per minute of use), and transport (as described in 51.707(b)(2) of this part).
(c) An interim arrangement shall cease to be in effect when one of the following occurs with respect to rates for transport and termination of local telecommunications traffic subject to the interim arrangement:
(1) a voluntary agreement has been negotiated and approved by a state commission;
(2) an agreement has been arbitrated and approved by a state commission; or
(3) the period for requesting arbitration has passed with no such request.
(d) If the rates for transport and termination of local telecommunications traffic in
an interim arrangement differ from the rates established by a state commission pursuant to
51.705 of this part, the state commission shall require carriers to make adjustments to
past compensation. Such adjustments to past compensation shall allow each carrier to
receive the level of compensation it would have received had the rates in the interim
arrangement equalled the rates later established by the state commission pursuant to
51.705 of this part.
51.717 Renegotiation of existing non-reciprocal arrangements.
(a) Any CMRS provider that operates under an arrangement with an incumbent LEC that was
established before August 8, 1996 and that provides for non-reciprocal compensation for
transport and termination of local telecommunications traffic is entitled to renegotiate
these arrangements with no termination liability or other contract penalties.
(b) From the date that a CMRS provider makes a request under paragraph (a) until a new
agreement has been either arbitrated or negotiated and has been approved by a state
commission, the CMRS provider shall be entitled to assess upon the incumbent LEC the same
rates for the transport and termination of local telecommunications traffic that the
incumbent LEC assesses upon the CMRS provider pursuant to the pre-existing arrangement.
Subpart I - Procedures for Implementation of Section 252 of the Act.
51.801 Commission action upon a state commission's failure to act to carry out
its responsibility under section 252 of the Act.
(a