[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: 47CFR61.41]

[Page 203-204]
 
                       TITLE 47--TELECOMMUNICATION
 
        CHAPTER I--FEDERAL COMMUNICATIONS COMMISSION (CONTINUED)
 
PART 61_TARIFFS--Table of Contents
 
              Subpart E_General Rules for Dominant Carriers
 
Sec. 61.41  Price cap requirements generally.

    (a) Sections 61.42 through 61.49 shall apply as follows:
    (1) [Reserved]
    (2) To such local exchange carriers as specified by Commission 
order, and to all local exchange carriers, other than average schedule 
companies, that are affiliated with such carriers; and
    (3) On an elective basis, to local exchange carriers, other than 
those specified in paragraph (a)(2) of this section, that are neither 
participants in any Association tariff, nor affiliated with any such 
participants, except that affiliation with average schedule companies 
shall not bar a carrier from electing price cap regulation provided the 
carrier is otherwise eligible.
    (b) If a telephone company, or any one of a group of affiliated 
telephone companies, files a price cap tariff in one study area, that 
telephone company and its affiliates, except its average schedule 
affiliates, must file price cap tariffs in all their study areas.
    (c) Except as provided in paragraph (e) of this section, the 
following rules in this paragraph (c) apply to telephone companies 
subject to price cap regulation, as that term is defined in Sec. 
61.3(ee), which are involved in mergers, acquisitions, or similar 
transactions.
    (1) Any telephone company subject to price cap regulation that is a 
party to a merger, acquisition, or similar transaction shall continue to 
be subject to price cap regulation notwithstanding such transaction.
    (2) Where a telephone company subject to price cap regulation 
acquires, is acquired by, merges with, or otherwise

[[Page 204]]

becomes affiliated with a telephone company that is not subject to price 
cap regulation, the latter telephone company shall become subject to 
price cap regulation no later than one year following the effective date 
of such merger, acquisition, or similar transaction and shall 
accordingly file price cap tariffs to be effective no later than that 
date in accordance with the applicable provisions of this part 61.
    (3) Notwithstanding the provisions of Sec. 61.41(c)(2), when a 
telephone company subject to price cap regulation acquires, is acquired 
by, merges with, or otherwise becomes affiliated with a telephone 
company that qualifies as an ``average schedule'' company, the latter 
company may retain its ``average schedule'' status or become subject to 
price cap regulation in accordance with Sec. 69.3(i)(3) of this chapter 
and the requirements referenced in that section.
    (d) Except as provided in paragraph (e) of this section, local 
exchange carriers that become subject to price cap regulation as that 
term is defined in Sec. 61.3(ee) shall not be eligible to withdraw from 
such regulation.
    (e) Notwithstanding the requirements of paragraphs (c) and (d) of 
this section, a telephone company subject to rate-of-return regulation 
may return lines acquired from a telephone company subject to price cap 
regulation to rate-of-return regulation, provided that the acquired 
lines will not be subject to average schedule settlements, and provided 
further that the telephone company subject to rate-of-return regulation 
may not for five years elect price cap regulation for itself, or by any 
means cause the acquired lines to become subject to price cap 
regulation.

[55 FR 42382, Oct. 19, 1990; 55 FR 50558, Dec. 7, 1990, as amended at 56 
FR 55239, Oct. 25, 1991; 64 FR 46589, Aug. 26, 1999; 65 FR 38695, June 
21, 2000; 65 FR 57741, Sept. 26, 2000; 69 FR 25336, May 6, 2004]

    Effective Date Note: At 69 FR 25336, May 6, 2004, Sec. thnsp;61.41 
was amended by revising paragraphs (c) introductory text and (d) and 
adding a new paragraph (e). These paragraphs contain information 
collection and recordkeeping requirements and will not become effective 
until approval has been given by the Office of Management and Budget.