[Code of Federal Regulations]
[Title 47, Volume 3]
[Revised as of October 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 47CFR61.47]
[Page 208-209]
TITLE 47--TELECOMMUNICATION
CHAPTER I--FEDERAL COMMUNICATIONS COMMISSION (CONTINUED)
PART 61_TARIFFS--Table of Contents
Subpart E_General Rules for Dominant Carriers
Sec. 61.47 Adjustments to the SBI; pricing bands.
(a) In connection with any price cap tariff filing proposing changes
in the rates of services in service categories, subcategories, or
density zones, the carrier must calculate an SBI value for each affected
service category, subcategory, or density zone pursuant to the following
methodology:
SBIt = SBIt-1[[Sigma]i
vi(Pt/Pt-1)i]
where
SBIt = the proposed SBI value,
SBIt-1 = the existing SBI value,
Pt = the proposed price for rate element ``i,''
Pt-1 = the existing price for rate element ``i,'' and
vi = the current estimated revenue weight for rate element
``i,'' calculated as the ratio of the base period demand for the rate
element ``i'' priced at the existing rate, to the base period demand for
the entire group of rate elements comprising the service category priced
at existing rates.
(b) New services that are added to existing service categories or
subcategories must be included in the appropriate SBI calculations under
paragraph (a) of this section beginning at the first annual price cap
tariff filing following completion of the base period in which they are
introduced. This index adjustment requires that the demand for the new
service during the base period must be included in determining the
weights used in calculating the SBI.
(c) In the event that the introduction of a new service requires the
creation of a new service category or subcategory, a new SBI must be
established for that service category or subcategory beginning at the
first annual price cap tariff filing following completion of the base
period in which the new service is introduced. The new SBI should be
initialized at a value of 100, corresponding to the service category or
subcategory rates in effect the last day of the base period, and
thereafter should be adjusted as provided in paragraph (a) of this
section.
(d) Any price cap tariff filing proposing rate restructuring shall
require an adjustment to the affected SBI pursuant to the general
methodology described in paragraph (a) of this section. This adjustment
requires the conversion of existing rates in the rate element group into
rates of equivalent value under the proposed structure, and then the
comparison of the existing rates that have been converted to reflect
restructuring to the proposed restructured rates. This calculation may
require use of carrier data and estimation techniques to assign
customers of the preexisting service to those services (including the
new restructured service) that will remain or become available after
restructuring.
(e) Pricing bands shall be established each tariff year for each
service category and subcategory within a basket. Each band shall limit
the pricing flexibility of the service category, subcategory, as
reflected in the SBI, to an annual increase of a specified percent
listed in this paragraph, relative to the percentage change in the PCI
for that basket, measured from the levels in effect on the last day of
the preceding tariff year. For local exchanage carriers subject to price
cap regulation as that term is defined in Sec. 61.3(ee), there shall be
no lower pricing band for any service category or subcategory.
(1) Five percent:
[[Page 209]]
(i) Local Switching (traffic sensitive basket)
(ii) Information (traffic sensitive basket)
(iii) Database Access Services (traffic sensitive basket)
(iv) 800 Database Vertical Services subservice (traffic sensitive
basket)
(v) Billing Name and Address (traffic sensitive basket)
(vi) Local Switching Trunk Ports (traffic sensitive basket)
(vii) Signalling Transfer Point Port Termination (traffic sensitive
basket)
(viii) Voice Grade (trunking and special access baskets)
(ix) Audio/Video (special access basket)
(x) Total High Capacity (trunking and special access baskets)
(xi) DS1 Subservice (trunking and special access baskets)
(xii) DS3 Subservice (trunking and special access baskets)
(xiii) Wideband (special access basket)
(2) Two percent:
(i) Tandem-Switched Transport (trunking basket)
(ii) Signalling for Tandem Switching (trunking basket)
(f) A local exchange carrier subject to price cap regulation may
establish density zones pursuant to the requirements set forth in Sec.
69.123 of this chapter, for any service in the trunking and special
access baskets, other than the interconnection charge set forth in Sec.
69.124 of this chapter. The pricing flexibility of each zone shall be
limited to an annual increase of 15 percent, relative to the percentage
change in the PCI for that basket, measured from the levels in effect on
the last day of the preceding tariff year. There shall be no lower
pricing band for any density zone.
(g)-(i)(l) [Reserved]
(2) Effective January 1, 1998, notwithstanding the requirements of
paragraph (a) of this section, if a local exchange carrier is recovering
interconnection charge revenues through per-minute rates pursuant to
Sec. 69.155 of this chapter, any reductions to the PCI for the basket
designated in Sec. 61.42(d)(3) resulting from the application of the
provisions of Sec. 61.45(b)(1)(i) and from the application of the
provisions of Sec. Sec. 61.45(i)(1) and 61.45(i)(2) shall be directed
to the SBI of the service category designated in Sec. 61.42(d)(i).
(3) [Reserved]
(4) Effective January 1, 1998, the SBI reduction required by
paragraph (i)(2) of this section shall be determined by dividing the sum
of the dollar amount of any PCI reduction required by Sec. Sec.
61.45(i)(1) and 61.45(i)(2), by the dollar amount associated with the
SBI for the service category designated in Sec. 61.42(e)(2)(vi), and
multiplying the SBI for the service category designated in Sec.
61.42(e)(2)(vi) by one minus the resulting ratio.
(5) Effective July 1, 2000, notwithstanding the requirements of
paragraph (a) of this section and subject to the limitations of Sec.
61.45(i), if a local exchange carrier is recovering an ATS charge
greater than its Target Rate as set forth in Sec. 61.3(qq), any
reductions to the PCI for the traffic sensitive or trunking baskets
designated in Sec. Sec. 61.42(d)(2) and 61.42(d)(3) resulting from the
application of the provisions of Sec. 61.45(b), and the formula in
Sec. 61.45(b) and from the application of the provisions of Sec. Sec.
61.45(i)(1), and 61.45(i)(2) shall be directed to the SBIs of the
service categories designated in Sec. Sec. 61.42(e)(1) and 61.42(e)(2).
(j) [Reserved]
(k) In no case shall a price cap local exchange carrier include data
associated with services offered pursuant to contract tariff in the
calculations required by this section.
[54 FR 19843, May 8, 1989, as amended at 55 FR 42384, Oct. 19, 1990; 56
FR 55239, Oct. 25, 1991; 57 FR 54331, Nov. 18, 1992; 58 FR 7868, Feb.
10, 1993; 58 FR 48762, Sept. 17, 1993; 59 FR 10302, Mar. 4, 1994; 59 FR
32930, June 27, 1994; 60 FR 19528, Apr. 19, 1995; 60 FR 52346, Oct. 6,
1995; 62 FR 4659, Jan. 31, 1997; 62 FR 31932, June 11, 1997; 62 FR
40460, July 29, 1997; 64 FR 46590, Aug. 26, 1999; 64 FR 51265, Sept. 22,
1999; 65 FR 38698, June 21, 2000; 65 FR 57742, Sept. 26, 2000]