[Code of Federal Regulations]
[Title 47, Volume 3]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 47CFR69.306]

[Page 428]
 
                       TITLE 47--TELECOMMUNICATION
 
        CHAPTER I--FEDERAL COMMUNICATIONS COMMISSION (CONTINUED)
 
PART 69_ACCESS CHARGES--Table of Contents
 
                Subpart D_Apportionment of Net Investment
 
Sec. 69.306  Central office equipment (COE).

    (a) The Separations Manual categories shall be used for purposes of 
apportioning investment in such equipment except that any Central office 
equipment attributable to local transport shall be assigned to the 
Transport elements.
    (b) COE Category 1 (Operator Systems Equipment) shall be apportioned 
among the interexchange category and the access elements as follows: 
Category 1 that is used for intercept services shall be assigned to the 
Local Switching element. Category 1 that is used for directory 
assistance shall be assigned to the Information element. Category 1 
other than service observation boards that is not assigned to the 
Information element and is not used for intercept services shall be 
assigned to the interexchange category. Service observation boards shall 
be apportioned among the interexchange category, and the Information and 
Transport access elements based on the remaining combined investment in 
COE Category 1, Category 2 and Category 3.
    (c) COE Category 2 (Tandem Switching Equipment) that is deemed to be 
exchange equipment for purposes of the Modification of Final Judgment in 
United States v. Western Electric Co. shall be assigned to the tandem 
switching charge subelement and the interconnection charge element. COE 
Category 2 which is associated with the signal transfer point function 
shall be assigned to the local switching category. COE Category 2 which 
is used to provide transmission facilities between the local exchange 
carrier's signalling transfer point and the database shall be assigned 
to the Line Information Database subelement at Sec. 69.120(a). All 
other COE Category 2 shall be assigned to the interexchange category.
    (d) COE Category 3 (Local Switching Equipment) shall be assigned to 
the Local Switching element except as provided in paragraph (a) of this 
section; and that,
    (1) For telephone companies subject to price cap regulation set 
forth in part 61 of this chapter, line-side port costs shall be assigned 
to the Common Line rate element; and
    (2) Beginning January 1, 2002, for non-price cap local exchange 
carriers, line-side port costs shall be assigned to the Common Line rate 
element. Such amount shall be determined after any local switching 
support has been removed from the interstate Local Switching revenue 
requirement. Non-price cap local exchange carriers may use thirty 
percent of the interstate Local Switching revenue requirement, minus any 
local switching support, as a proxy for allocating line port costs to 
the Common Line category.
    (e) COE Category 4 (Circuit Equipment) shall be apportioned among 
the interexchange category and the Common Line, Transport, and Special 
Access elements. COE Category 4 shall be apportioned in the same 
proportions as the associated Cable and Wireless Facilities; except that 
any DS1/voice-grade multiplexer investment associated with analog local 
switches and assigned to the local transport category by this section 
shall be reallocated to the local switching category.

[52 FR 37312, Oct. 6, 1987, as amended at 57 FR 54722, Nov. 20, 1992; 58 
FR 30995, May 28, 1993; 62 FR 31938, June 11, 1997; 66 FR 59732, Nov. 
30, 2001]