[Code of Federal Regulations]
[Title 47, Volume 3]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 47CFR54.307]

[Page 122-124]
 
                       TITLE 47--TELECOMMUNICATION
 
        CHAPTER I--FEDERAL COMMUNICATIONS COMMISSION (CONTINUED)
 
PART 54_UNIVERSAL SERVICE--Table of Contents
 
         Subpart D_Universal Service Support for High Cost Areas
 
Sec.  54.307  Support to a competitive eligible telecommunications carrier.

    (a) Calculation of support. A competitive eligible 
telecommunications carrier shall receive universal service support to 
the extent that the competitive eligible telecommunications carrier 
captures the subscriber lines of an incumbent local exchange carrier 
(LEC)

[[Page 123]]

or serves new subscriber lines in the incumbent LEC's service area.
    (1) A competitive eligible telecommunications carrier serving loops 
in the service area of a rural incumbent local exchange carrier, as that 
term is defined in Sec.  54.5 of this chapter, shall receive support for 
each line it serves in a particular service area based on the support 
the incumbent LEC would receive for each such line, disaggregated by 
cost zone if disaggregation zones have been established within the 
service area pursuant to Sec.  54.315 of this subpart. A competitive 
eligible telecommunications carrier serving loops in the service area of 
a non-rural incumbent local exchange carrier shall receive support for 
each line it serves in a particular wire center based on the support the 
incumbent LEC would receive for each such line. A competitive eligible 
telecommunications carrier serving loops in the service area of a rate-
of-return carrier shall be eligible to receive Interstate Common Line 
Support for each line it serves in the service area in accordance with 
the formula in Sec.  54.901.
    (2) A competitive eligible telecommunications carrier that uses 
switching purchased as unbundled network elements pursuant to Sec.  
51.307 of this chapter to provide the supported services shall receive 
the lesser of the unbundled network element price for switching or the 
per-line DEM support of the incumbent LEC, if any. A competitive 
eligible telecommunications carrier that uses loops purchased as 
unbundled network elements pursuant to Sec.  51.307 of this chapter to 
provide the supported services shall receive the lesser of the unbundled 
network element price for the loop or the incumbent LEC's per-line 
payment from the high-cost loop support, LTS, and Interstate Common Line 
Support mechanisms, if any. The incumbent LEC providing 
nondiscriminatory access to unbundled network elements to such 
competitive eligible telecommunications carrier shall receive the 
difference between the level of universal service support provided to 
the competitive eligible telecommunications carrier and the per-customer 
level of support that the incumbent LEC would have received.
    (3) A competitive eligible telecommunications carrier that provides 
the supported services using neither unbundled network elements 
purchased pursuant to Sec.  51.307 of this chapter nor wholesale service 
purchased pursuant to section 251(c)(4) of the Act will receive the full 
amount of universal service support that the incumbent LEC would have 
received for that customer.
    (4) A competitive eligible telecommunications carrier that provides 
the supported services using neither unbundled network elements 
purchased pursuant to Sec.  51.307 of this chapter nor wholesale service 
purchased pursuant to section 251(c)(4) of the Act will receive the full 
amount of universal service support previously provided to the incumbent 
local exchange carrier for that customer. The amount of universal 
service support provided to such incumbent local exchange carrier shall 
be reduced by an amount equal to the amount provided to such competitive 
eligible telecommunications carrier.
    (b) In order to receive support pursuant to this subpart, a 
competitive eligible telecommunications carrier must report to the 
Administrator the number of working loops it serves in a service area 
pursuant to the schedule set forth in paragraph (c) of this section. For 
a competitive eligible telecommunications carrier serving loops in the 
service area of a rural incumbent local exchange carrier, as that term 
is defined in Sec.  54.5, the carrier must report, by customer class, 
the number of working loops it serves in the service area, disaggregated 
by cost zone if disaggregation zones have been established within the 
service area pursuant to Sec.  54.315. For a competitive eligible 
telecommunications carrier serving loops in the service area of a non-
rural telephone company, the carrier must report the number of working 
loops it serves in the service area, by customer class if the non-rural 
telephone company receives Interstate Common Line Support pursuant to 
Sec.  54.901 and by disaggregation zone if disaggregation zones have 
been established within the service area pursuant to Sec.  54.315 of 
this subpart, and the number of working loops it serves in each wire 
center in the service area. For universal service support purposes,

[[Page 124]]

working loops are defined as the number of working Exchange Line C&WF 
loops used jointly for exchange and message telecommunications service, 
including C&WF subscriber lines associated with pay telephones in C&WF 
Category 1, but excluding WATS closed end access and TWX service. 
Competitive eligible telecommunications carriers providing mobile 
wireless service in an incumbent LEC's service area shall use the 
customer's billing address for purposes of identifying the service 
location of a mobile wireless customer in a service area.
    (c) A competitive eligible telecommunications carrier must submit 
the data required pursuant to paragraph (b) of this section according to 
the schedule.
    (1) No later than July 31st of each year, submit data as of December 
31st of the previous calendar year;
    (2) No later than September 30th of each year, submit data as of 
March 31st of the existing calendar year;
    (3) No later than December 30th of each year, submit data as of June 
30th of the existing calendar year;
    (4) No later than March 30th of each year, submit data as of 
September 30th of the previous calendar year.

[62 FR 32948, June 17, 1997, as amended at 63 FR 2128, Jan. 13, 1998; 64 
FR 67431, Dec. 1, 1999; 65 FR 26516, May 8, 2000; 66 FR 30087, June 5, 
2001; 66 FR 59726, Nov. 30, 2001; 68 FR 31623, May 28, 2003]