[Code of Federal Regulations]
[Title 7, Volume 11]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1735.12]

[Page 305-307]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1735--GENERAL POLICIES, TYPES OF LOANS, LOAN REQUIREMENTS--TELECOMMUNICATIONS PROGRAM--Table of Contents
 
               Subpart B--Loan Purposes and Basic Policies
 
Sec. 1735.12  Nonduplication.

    (a) In states having a state regulatory body with authority to 
regulate

[[Page 306]]

telephone service and to require certificates of convenience and 
necessity, the borrower must obtain such a certificate before RUS will 
make a loan. Facilities or services not specifically covered by such 
certificate will be subject to the provisions of Sec. 1735.12(b).
    (b) In states where there is no such regulatory body, a loan will 
not be made unless the Administrator determines that no duplication of 
lines, facilities, or systems already providing reasonably adequate 
services shall result from such a loan.
    (c) RUS shall consider the following criteria for any wireline local 
exchange service or similar fixed-station voice service provided by a 
local exchange carrier (LEC) in determining whether such service is 
reasonably adequate:
    (1) The LEC is providing area coverage as described in Sec. 1735.11.
    (2) The LEC is providing all one-party service or, if the State 
commission has mandated a lower grade of service, the LEC is eliminating 
that service in accordance with the requirements of the 
Telecommunications Act of 1996, 47 U.S.C. 151 et seq.
    (3) The LEC's network is capable of providing transmission and 
reception of data at a rate of at least 1,000,000 bits per second (1 
Mbps) with reasonable modification to any subscriber who requests it.
    (4) The LEC makes available custom calling features (at a minimum, 
call waiting, call forwarding, abbreviated dialing, and three-way 
calling).
    (5) The LEC is able to provide E911 service to all subscribers, when 
requested by the government entity responsible for this service.
    (6) The LEC is able to offer local service with blocked toll access 
to those subscribers who request it.
    (7) The LEC's network is capable of accommodating Internet access at 
speeds of at least 28,800 bits per second (28.8 Kbps) via modem dial-up 
from any subscriber location.
    (8) There is an absence of frequent service interruptions.
    (9) The LEC is interconnected with the public switched network.
    (10) No Federal or State regulatory commission having jurisdiction 
has determined that the quality, availability, or reliability of the 
service provided is inadequate.
    (11) Services are provided at reasonably affordable rates.
    (12) Any other criteria the Administrator determines to be 
applicable to the particular case.
    (d) RUS shall consider the following criteria for any of mobile 
telecommunications service in determining whether such service is 
reasonably adequate:
    (1) The extent to which area coverage is being provided as described 
in 7 CFR 1735.11.
    (2) Clear and reliable call transmission is provided with sufficient 
channel availability.
    (3) The mobile telecommunications service signal strength is at 
least -85dBm (decibels expressed in miliwatts).
    (4) The mobile telecommunications service is interconnected with the 
public switched network.
    (5) Mobile 911 service is available to all subscribers, when 
requested by the local government entity responsible for this service.
    (6) No Federal or State regulatory commission having jurisdiction 
has determined that the quality, availability, or reliability of the 
service provided is inadequate.
    (7) Mobile telecommunications service is not provided at rates which 
render the service unaffordable to a significant number of rural 
persons.
    (8) Any other criteria the Administrator determines to be applicable 
to the particular case.
    (e) RUS does not consider mobile telecommunications service a 
duplication of existing wireline local exchange service or similar 
fixed-station voice service. RUS may finance mobile telecommunications 
systems designed to provide eligible services in rural areas under the 
Rural Electrification Act even though the services provided by the 
system may incidentally overlap services of existing mobile 
telecommunications providers.
    (f) RUS shall consider the following criteria for any provider of a 
specialized telecommunications service in determining whether such 
service is reasonably adequate:

[[Page 307]]

    (1) The provider of a specialized telecommunications service is 
providing area coverage as described in Sec. 1735.11.
    (2) An adequate signal strength is provided throughout the largest 
practical portion of the service area.
    (3) There is an absence of frequent service interruptions.
    (4) The quality and variety of service provided is comparable to 
that provided in nonrural areas.
    (5) The service provided complies with industry standards.
    (6) No Federal, State, or local regulatory commission having 
jurisdiction has determined that the quality, availability, or 
reliability of the service provided is inadequate.
    (7) Services are provided at reasonably affordable rates.
    (8) Any other criteria the Administrator determines to be applicable 
to the particular case.

[54 FR 13351, Apr. 3, 1989. Redesignated at 55 FR 39395, Sept. 27, 1990, 
as amended at 65 FR 42619, July 11, 2000; 65 FR 54403, Sept. 8, 2000]