[Code of Federal Regulations]
[Title 47, Volume 3]
[Revised as of October 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 47CFR54.315]

[Page 125-127]
 
                       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. 54.315  Disaggregation and targeting of high-cost support.

    (a) On or before May 15, 2002, all rural incumbent local exchange 
carriers and rate-of-return carriers for which high-cost universal 
service support pursuant to Sec. Sec. 54.301, 54.303, and/or 54.305 of 
this subpart, subpart K of this part, and/or part 36 subpart F is 
available must select a disaggregation path as described in paragraphs 
(b), (c), or (d) of this section. In study areas in which a competitive 
carrier was designated as a competitive eligible telecommunications 
carrier prior to June 19, 2001, the rural incumbent local exchange 
carrier or rate-of-return carrier may only disaggregate support pursuant 
to paragraphs (b), (c), or (d)(1)(iii) of this section. A rural 
incumbent local exchange carrier or rate-of-return carrier failing to 
select a disaggregation path as described in paragraphs (b), (c), or (d) 
of this section by May 15, 2002, will not be permitted to disaggregate 
and target federal high-cost support unless ordered to do so by a state 
commission as that term is defined in Sec. 54.5.
    (b) Path 1: Carriers Not Disaggregating and Targeting High-Cost 
Support:
    (1) A carrier may certify to the state commission that it will not 
disaggregate and target high-cost universal service support.
    (2) A carrier's election of this path becomes effective upon 
certification by the carrier to the state commission.
    (3) This path shall remain in place for such carrier for at least 
four years from the date of certification to the state commission except 
as provided in paragraph (b)(4) of this section.
    (4) A state commission may require, on its own motion, upon petition 
by an interested party, or upon petition by the rural incumbent local 
exchange carrier or rate-of-return carrier, the disaggregation and 
targeting of support under paragraphs (c) or (d) of this section.
    (5) A carrier not subject to the jurisdiction of a state, e.g., 
certain tribally owned carriers, may select Path 1, but must certify to 
the Federal Communications Commission as described in paragraphs (1) 
through (4) of this section.
    (c) Path 2: Carriers Seeking Prior Regulatory Approval for the 
Disaggregation and Targeting of Support:
    (1) A carrier electing to disaggregate and target support under this 
paragraph must file a disaggregation and targeting plan with the state 
commission.
    (2) Under this paragraph a carrier may propose any method of 
disaggregation and targeting of support consistent with the general 
requirements detailed in paragraph (e) of this section.
    (3) A disaggregation and targeting plan under this paragraph becomes 
effective upon approval by the state commission.
    (4) A carrier shall disaggregate and target support under this path 
for at least four years from the date of approval by the state 
commission except as provided in paragraph (c)(5) of this section.
    (5) A state commission may require, on its own motion, upon petition 
by an interested party, or upon petition by the rural incumbent local 
exchange carrier or rate-of-return carrier, the disaggregation and 
targeting of support in a different manner.
    (6) A carrier not subject to the jurisdiction of a state, e.g., 
certain tribally owned carriers, may select Path 2, but must seek 
approval from the Federal Communications Commission as described in 
paragraphs (c)(1) through (5) of this section.
    (d) Path 3: Self-Certification of the Disaggregation and Targeting 
of Support:
    (1) A carrier may file a disaggregation and targeting plan with the 
state commission along with a statement certifying each of the 
following:
    (i) It has disaggregated support to the wire center level; or
    (ii) It has disaggregated support into no more than two cost zones 
per wire center; or

[[Page 126]]

    (iii) That the carrier's disaggregation plan complies with a prior 
regulatory determination made by the state commission.
    (2) Any disaggregation plan submitted pursuant to this paragraph 
must meet the following requirements:
    (i) The plan must be supported by a description of the rationale 
used, including the methods and data relied upon to develop the 
disaggregation zones, and a discussion of how the plan complies with the 
requirements of this paragraph. Such filing must provide information 
sufficient for interested parties to make a meaningful analysis of how 
the carrier derived its disaggregation plan.
    (ii) The plan must be reasonably related to the cost of providing 
service for each disaggregation zone within each disaggregated category 
of support.
    (iii) The plan must clearly specify the per-line level of support 
for each category of high-cost universal service support provided 
pursuant to Sec. Sec. 54.301, 54.303, and/or 54.305 and/or part 36, 
subpart F of this chapter in each disaggregation zone.
    (iv) If the plan uses a benchmark, the carrier must provide detailed 
information explaining what the benchmark is and how it was determined. 
The benchmark must be generally consistent with how the total study area 
level of support for each category of costs is derived to enable a 
competitive eligible telecommunications carrier to compare the 
disaggregated costs used to determine support for each cost zone.
    (3) A carrier's election of this path becomes effective upon 
certification by the carrier to the state commission.
    (4) A carrier shall disaggregate and target support under this path 
for at least four years from the date of certification to the state 
commission except as provided in paragraph (d)(5) of this section.
    (5) A state commission may require, on its own motion, upon petition 
by an interested party, or upon petition by the rural incumbent local 
exchange carrier, modification to the disaggregation and targeting of 
support selected under this path.
    (6) A carrier not subject to the jurisdiction of a state, e.g., 
certain tribally owned carriers, may select Path 3, but must certify to 
the Federal Communications Commission as described in paragraphs (d)(1) 
through (5) of this section.
    (e) Additional Procedures Governing the Operation of Path 2 and Path 
3: Disaggregation and targeting plan adopted under paragraphs (c) or (d) 
of this section shall be subject to the following general requirements:
    (1) Support available to the carrier's study area under its 
disaggregation plan shall equal the total support available to the study 
area without disaggregation.
    (2) The ratio of per-line support between disaggregation zones for 
each disaggregated category of support shall remain fixed over time, 
except as changes are allowed pursuant to paragraph (c) and (d) of this 
section.
    (3) The ratio of per-line support shall be publicly available.
    (4) Per-line support amounts for each disaggregation zone shall be 
recalculated whenever the carrier's total annual support amount changes 
using the changed support amount and lines at that point in time.
    (5) Per-line support for each category of support in each 
disaggregation zone shall be determined such that the ratio of support 
between disaggregation zones is maintained and that the product of all 
of the carrier's lines for each disaggregation zone multiplied by the 
per-line support for those zones when added together equals the sum of 
the carrier's total support.
    (6) Until a competitive eligible telecommunications carrier is 
certified in a study area, monthly payments to the incumbent carrier 
will be made based on total annual amounts for its study area divided by 
12.
    (7) When a competitive eligible telecommunications carrier is 
certified in a study area, per-line amounts used to determine the 
competitive eligible telecommunications carrier's disaggregated support 
shall be based on the incumbent carrier's then-current total support 
levels, lines, disaggregated support relationships, and, in the case of 
support calculated under subpart K of this part, customer classes.

[[Page 127]]

    (f) Submission of Information to the Administrator:
    (1) A carrier certifying under paragraph (b) of this section that it 
will not disaggregate and target high-cost universal service support 
shall submit to the Administrator a copy of the certification submitted 
to the state commission, or the Federal Communications Commission, when 
not subject to state jurisdiction.
    (2) A carrier electing to disaggregate and target support under 
paragraph (c) of this section shall submit to the Administrator a copy 
of the order approving the disaggregation and targeting plan submitted 
by the carrier to the state commission, or the Federal Communications 
Commission, when not subject to state jurisdiction, and a copy of the 
disaggregation and targeting plan approved by the state commission or 
the Federal Communications Commission.
    (3) A carrier electing to disaggregate and target support under 
paragraph (d) of this section shall submit to the Administrator a copy 
of the self-certification plan including the information submitted to 
the state commission pursuant to paragraphs (d)(2)(i) and (d)(2)(iv) of 
this section or the Federal Communications Commission.
    (4) A carrier electing to disaggregate and target support under 
paragraph (c) or (d) of this section must submit to the Administrator 
maps which precisely identify the boundaries of the designated 
disaggregation zones of support within the carrier's study area.

[66 FR 30089, June 5, 2001, as amended at 66 FR 59727, Nov. 30, 2001]