[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: 7CFR1737.31]

[Page 330-331]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1737--PRE-LOAN POLICIES AND PROCEDURES COMMON TO INSURED AND GUARANTEED TELECOMMUNICATIONS LOANS--Table of Contents
 
    Subpart D--Preloan Studies--Area Coverage Survey and Loan Design
 
Sec. 1737.31  Area Coverage Survey (ACS).

    (a) The Area Coverage Survey (ACS) is a market forecast of service 
requirements of subscribers in a proposed service area.
    (b) The objective of the ACS is to determine the location, number 
and telephone service requirements of subscribers in a service area. RUS 
will use the ACS to appraise the proposed plan for area coverage and to 
determine the largest practical number of rural subscribers which can be 
served on an economically feasible basis. Preparation of the ACS 
requires:
    (1) A field survey of the service area to locate and identify on 
maps all business and residential establishments, whether currently 
served or not. The location and identification of future establishments 
are also recorded on the maps.
    (2) A forecast of the number of telephone subscribers, in the entire 
service area, by exchange, grade and class of service, projected for the 
end of the 5-year study period.

[[Page 331]]

    (c) The results of the survey and forecast shall be:
    (1) Shown on maps (maps for those service areas previously financed 
by RUS do not have to be included in the ACS provided that the 
borrower's records contain sufficient information as to subscriber 
development to enable cost estimates for the proposed facilities to be 
prepared);
    (2) Tabulated on RUS Form 569 ``Area Coverage Survey Report,'' or 
its equivalent; and
    (3) supported by a narrative (see Sec. 1737.32(f)(1)(ii)) containing 
information on the bases for the service requirement forecasts in each 
exchange.
    (d) Guidelines on preparing an ACS are provided in RUS 
Telecommunications Engineering and Construction Manual section 205.
    (e) The RUS field representative reviews and approves the borrower's 
ACS. The borrower should make sure this is done before proceeding with 
the Loan Design in order to prevent unnecessary expense should the ACS 
not be approved. The borrower's engineer must use the RUS-approved ACS 
in preparing the Loan Design.

(Approved by the Office of Management and Budget under control number 
0572-0079)