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Home Page > Executive Branch > Code of Federal Regulations > Electronic Code
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e-CFR Data is current as of October 1, 2007
Title 47: Telecommunication
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PART 36—JURISDICTIONAL SEPARATIONS PROCEDURES; STANDARD PROCEDURES FOR
SEPARATING TELECOMMUNICATIONS PROPERTY COSTS, REVENUES, EXPENSES, TAXES AND
RESERVES FOR TELECOMMUNICATIONS COMPANIES^1
___________________________________
Section Contents
Subpart A—General
§ 36.1 General.
§ 36.2 Fundamental principles underlying procedures.
§ 36.3 Freezing of jurisdictional separations category relationships
and/or allocation factors.
Subpart B—Telecommunications Property
General
§ 36.101 Section arrangement.
§ 36.102 General.
General Support Facilities
§ 36.111 General.
§ 36.112 Apportionment procedure.
Central Office Equipment
§ 36.121 General.
§ 36.122 Categories and apportionment procedures.
§ 36.123 Operator systems equipment—Category 1.
§ 36.124 Tandem switching equipment—Category 2.
§ 36.125 Local switching equipment—Category 3.
§ 36.126 Circuit equipment—Category 4.
Information Origination/Termination (IOT) Equipment
§ 36.141 General.
§ 36.142 Categories and apportionment procedures.
Cable and Wire Facilities
§ 36.151 General.
§ 36.152 Categories of Cable and Wire Facilities (C&WF).
§ 36.153 Assignment of Cable and Wire Facilities (C&WF) to categories.
§ 36.154 Exchange Line Cable and Wire Facilities (C&WF)—Category
1—apportionment procedures.
§ 36.155 Wideband and exchange trunk (C&WF)—Category 2—apportionment
procedures.
§ 36.156 Interexchange Cable and Wire Facilities (C&WF)—Category
3—apportionment procedures.
§ 36.157 Host/remote message Cable and Wire Facilities (C&WF)—Category
4—apportionment procedures.
Amortizable Assets
§ 36.161 Tangible assets—Account 2680.
§ 36.162 Intangible assets—Account 2690.
Telecommunications Plant—Other
§ 36.171 Property held for future telecommunications use—Account 2002;
Telecommunications plant under construction—Account 2003; and
Telecommunications plant adjustment—Account 2005.
Rural Telephone Bank Stock
§ 36.172 Other noncurrent assets—Account 1410.
Material and Supplies and Cash Working Capital
§ 36.181 Material and supplies—Account 1220.
§ 36.182 Cash working capital.
Equal Access Equipment
§ 36.191 Equal access equipment.
Subpart C—Operating Revenues and Certain Income Accounts
General
§ 36.201 Section arrangement.
§ 36.202 General.
Operating Revenues
§ 36.211 General.
§ 36.212 Basic local services revenue—Account 5000 (Class B telephone
companies); Basic area revenue—Account 5001 (Class A telephone companies).
§ 36.213 Network access services revenues.
§ 36.214 Long distance message revenue—Account 5100.
§ 36.215 Miscellaneous revenue—Account 5200.
§ 36.216 Uncollectible revenue—Account 5300.
Certain Income Accounts
§ 36.221 Other operating income and expenses—Account 7100.
§ 36.222 Nonoperating income and expenses—Account 7300.
§ 36.223 Interest and related items—Account 7500.
§ 36.224 Extraordinary items—Account 7600.
§ 36.225 Income effect of jurisdictional ratemaking differences—Account
7910.
Subpart D—Operating Expenses and Taxes
General
§ 36.301 Section arrangement.
§ 36.302 General.
Plant Specific Operations Expenses
§ 36.310 General.
Network Support/General Support Expenses
§ 36.311 Network Support/General Support Expenses—Accounts 6110 and 6120
(Class B Telephone Companies); Accounts 6112, 6113, 6114, 6121, 6122, 6123,
and 6124 (Class A Telephone Companies).
Central Office Expenses
§ 36.321 Central office expenses—Accounts 6210, 6220, and 6230 (Class B
telephone companies); Accounts 6211, 6212, 6220, 6231, and 6232 (Class A
telephone companies).
Information Origination/Termination Expenses
§ 36.331 Information origination/termination expenses—Account 6310 (Class
B telephone companies); Accounts 6311, 6341, 6351, and 6362 (Class A
telephone companies).
Cable and Wire Facilities Expenses
§ 36.341 Cable and wire facilities expenses—Account 6410 (Class B
telephone companies); Accounts 6411, 6421, 6422, 6423, 6424, 6426, 6431, and
6441 (Class A telephone companies).
Plant Nonspecific Operations Expenses
§ 36.351 General.
Plant Expenses—Other
§ 36.352 Other property plant and equipment expenses—Account 6510 (Class B
telephone companies); Accounts 6511 and 6512 (Class A telephone companies).
Network Operations Expenses
§ 36.353 Network operations expenses—Account 6530 (Class B telephone
companies); Accounts 6531, 6532, 6533, 6534, and 6535 (Class A telephone
companies).
§ 36.354 Access expenses—Account 6540.
Depreciation and Amortization Expenses
§ 36.361 Depreciation and amortization expenses—Account 6560.
Customer Operations Expenses
§ 36.371 General.
§ 36.372 Marketing—Account 6610 (Class B telephone companies); Accounts
6611 and 6613 (Class A telephone companies).
§ 36.373 Services—Account 6620.
§ 36.374 Telephone operator services.
§ 36.375 Published directory listing.
§ 36.376 All other.
§ 36.377 Category 1—Local business office expense.
§ 36.378 Category 2—Customer services (revenue accounting).
§ 36.379 Message processing expense.
§ 36.380 Other billing and collecting expense.
§ 36.381 Carrier access charge billing and collecting expense.
§ 36.382 Category 3—All other customer services expense.
Corporate Operations Expense
§ 36.391 General.
§ 36.392 General and administrative—Account 6720.
Operating Taxes
§ 36.411 Operating taxes—Account 7200 (Class B Telephone Companies);
Accounts 7210, 7220, 7230, 7240, and 7250 (Class A Telephone Companies).
§ 36.412 Apportionment procedures.
Equal Access Expenses
§ 36.421 Equal access expenses.
Subpart E—Reserves and Deferrals
§ 36.501 General.
§ 36.502 Other jurisdictional assets—Net—Account 1500.
§ 36.503 Accumulated depreciation—Account 3100.
§ 36.504 Accumulated depreciation—Property held for future
telecommunications use—Account 3200.
§ 36.505 Accumulated amortization—Tangible—Account 3400 (Class B Telephone
Companies); Accumulated amortization—Capital Leases—Account 3410 (Class A
Telephone Companies).
§ 36.506 Net current deferred operating income taxes—Account 4100, Net
noncurrent deferred operating income taxes—Account 4340.
§ 36.507 Other jurisdictional liabilities and deferred credits—Net—Account
4370.
Subpart F—Universal Service Fund
General
§ 36.601 General.
§ 36.602 Calculation of non-rural carrier portion of nationwide loop cost
expense adjustment.
§ 36.603 Calculation of rural incumbent local exchange carrier portion of
nationwide loop cost expense adjustment.
§ 36.604 Calculation of the rural growth factor.
§ 36.605 Calculation of safety net additive.
Data Collection
§ 36.611 Submission of information to the National Exchange Carrier
Association (NECA).
§ 36.612 Updating information submitted to the National Exchange Carrier
Association.
§ 36.613 Submission of information by the National Exchange Carrier
Association.
Calculation of Loop Costs for Expense Adjustment
§ 36.621 Study area total unseparated loop cost.
§ 36.622 National and study area average unseparated loop costs.
Calculation of Expense Adjustment—Additional Interstate Expense Allocation
§ 36.631 Expense adjustment.
Transitional Expense Adjustment
Subpart G [Reserved]
Appendix to Part 36—Glossary
___________________________________
^1 The Commission has determined that the same jurisdictional separations
used in the contiguous states are to be used for Alaska, Hawaii, Puerto Rico
and the Virgin Islands. Integration of Rates and Services, Docket No. 21263,
87 FCC 2nd 18 (1981); Integration of Rates and Services, Docket No. 21264,
72 FCC 2nd 699 (1979).
Authority: 47 U.S.C. Secs. 151, 154 (i) and (j), 205, 221(c), 254, 403 and
410.
Source: 52 FR 17229 , May 6, 1987, unless otherwise noted.
Subpart A—General
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§ 36.1 General.
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(a) This part contains an outline of separations procedures for
telecommunications companies on the station-to-station basis. These
procedures are applicable either to property costs, revenues, expenses,
taxes, and reserves as recorded on the books of the company or to estimated
amounts.
(1) Where a value basis is used instead of book costs, the “costs” referred
to are the “values” of the property derived from the valuation.
(b) The separations procedures set forth in this part are designed primarily
for the allocation of property costs, revenues, expenses, taxes and reserves
between state and interstate jurisdictions. For separations, where required,
of the state portion between exchange and toll or for separations of
individual exchanges or special services, further analyses and studies may
be required to adapt the procedures to such additional separations.
(c) The fundamental basis on which separations are made is the use of
telecommunications plant in each of the operations. The first step is the
assignment of the cost of the plant to categories. The basis for making this
assignment is the identification of the plant assignable to each category
and the determination of the cost of the plant so identified. The second
step is the apportionment of the cost of the plant in each category among
the operations by direct assignment where possible, and all remaining costs
are assigned by the application of appropriate use factors.
(d) In assigning book costs to categories, the costs used for certain plant
classes are average unit costs which equate to all book costs of a
particular account or subaccount; for other plant classes, the costs used
are those which either directly approximate book cost levels or which are
equated to match total book costs at a given location.
(e) The procedures outlined herein reflect “short-cuts” where practicable
and where their application produces substantially the same separations
results as would be obtained by the use of more detailed procedures, and
they assume the use of records generally maintained by Telecommunications
Companies.
(f) The classification to accounts of telecommunications property, revenues,
expenses, etc., set forth in this manual is that prescribed by the Federal
Communications Commission's Uniform System of Accounts for
Telecommunications Companies.
(g) In the assignment of property costs to categories and in the
apportionment of such costs among the operations, each amount so assigned
and apportioned is identified as to the account classification in which the
property is included. Thus, the separated results are identified by property
accounts and apportionment bases are provided for those expenses which are
separated on the basis of the apportionment of property costs. Similarly,
amounts of revenues and expenses assigned each of the operations are
identified as to account classification.
(h) The separations procedures described in this part are not to be
interpreted as indicating what property, revenues, expenses and taxes, or
what items carried in the income, reserve and retained earnings accounts,
should or should not be considered in any investigation or rate proceeding.
§ 36.2 Fundamental principles underlying procedures.
top
(a) The following general principles underlie the procedures outlined in
this part:
(1) Separations are intended to apportion costs among categories or
jurisdictions by actual use or by direct assignment.
(2) Separations are made on the “actual use” basis, which gives
consideration to relative occupancy and relative time measurements.
(3) In the development of “actual use” measurements, measurements of use are
(i) determined for telecommunications plant or for work performed by
operating forces on a unit basis (e.g., conversation-minute-kilometers per
message, weighted standard work seconds per call) in studies of traffic
handled or work performed during a representative period for all traffic and
(ii) applied to overall traffic volumes, i.e., 24-hour rather than busy-hour
volumes.
(b) Underlying the procedures included in this manual for the separation of
plant costs is an over-all concept which may be described as follows:
(1) Telecommunications plant, in general, is segregable into two broad
classifications, namely, (i) interexchange plant, which is plant used
primarily to furnish toll services, and (ii) exchange plant, which is plant
used primarily to furnish local services.
(2) Within the interexchange classification, there are three broad types of
plant, i.e., operator systems, switching plant, and trunk transmission
equipment. Within the exchange classification there are four board types of
plant, i.e., operator systems, switching plant, truck equipment and
subscriber plant. Subscriber plant comprises lines to the subscriber.
(3) In general, the basis for apportioning telecommunications plant used
jointly for state and interstate operations are:
(i) Operator work time expressed in weighted standard work seconds is the
basis for measuring the use of operator systems.
(ii) Holding-time-minutes is the basis for measuring the use of local and
toll switching plant.
(iii) Conversation-minute-kilometers or conversation minutes is the basis
for measuring the use of interexchange circuit plant and holding-time
minutes is the basis for measuring the use of exchange trunk plant. While
the use of holding-time-minute-kilometers is the basic fundamental
allocation factor for interexchange circuit plant and exchange trunk plant,
the use of conversation-minute-kilometers or conversation-minutes for the
allocation of interexchange circuit plant and holding-time minutes for the
allocation of exchange trunk plant are considered practical approximations
for separations between state and interstate operations when related to the
broad types of plant classifications used herein.
(iv) Message telecommunications subscriber plant shall be apportioned on the
basis of a Gross Allocator which assigns 25 percent to the interstate
jurisdiction and 75 percent to the state jurisdiction.
(c) Property rented to affiliates, if not substantial in amount, is included
as used property of the owning company with the associated revenues and
expenses treated consistently: Also such property rented from affiliates is
not included with the used property of the company making the separations;
the rent paid is included in its expenses. If substantial in amount, the
following treatment is applied:
(1) In the case of property rented to affiliates, the property and related
expenses and rent revenues are excluded from the telephone operations of the
owning company, and
(2) In the case of property rented from affiliates, the property and related
expenses are included with, and the rent expenses are excluded from, the
telephone operations of the company making the separation.
(d) Property rented to or from non-affiliates is usually to be included as
used property of the owning company with the associated revenues and
expenses treated consistently. In the event the amount is substantial, the
property involved and the revenues and expenses associated therewith may be
excluded from or included in the telecommunications operations of the
company. When required, the cost of property rented to or from
non-affiliates is determined using procedures that are consistent with the
procedures for the allocation of costs among the operations.
(e) Costs associated with services or plant billed to another company which
have once been separated under procedures consistent with general principles
set forth in this part, and are thus identifiable as entirely interstate or
State in nature, shall be directly assigned to the appropriate operation and
jurisdiction.
[ 52 FR 17229 , May 6, 1987, as amended at 58 FR 44905 , Aug. 25, 1993; 71 FR 65745 , Nov. 9, 2006]
§ 36.3 Freezing of jurisdictional separations category relationships and/or
allocation factors.
top
(a) Effective July 1, 2001, through June 30, 2006, all local exchange
carriers subject to part 36 rules shall apportion costs to the jurisdictions
using their study area and/or exchange specific jurisdictional allocation
factors calculated during the twelve month period ending December 31, 2000,
for each of the categories/sub-categories as specified herein. Direct
assignment of private line service costs between jurisdictions shall be
updated annually. Other direct assignment of investment, expenses, revenues
or taxes between jurisdictions shall be updated annually. Local exchange
carriers that invest in telecommunications plant categories during the
period July 1, 2001, through June 30, 2006, for which it had no separations
allocation factors for the twelve month period ending December 31, 2000,
shall apportion that investment among the jurisdictions in accordance with
the separations procedures in effect as of December 31, 2000 for the
duration of the freeze.
(b) Effective July 1, 2001, through June 30, 2006, local exchange carriers
subject to price cap regulation, pursuant to §61.41, shall assign costs from
the part 32 accounts to the separations categories/sub-categories, as
specified herein, based on the percentage relationships of the
categorized/sub-categorized costs to their associated part 32 accounts for
the twelve month period ending December 31, 2000. If a part 32 account for
separations purposes is categorized into more than one category, the
percentage relationship among the categories shall be utilized as well.
Local exchange carriers that invest in types of telecommunications plant
during the period July 1, 2001, through June 30, 2006, for which it had no
separations category investment for the twelve month period ending December
31, 2000, shall assign such investment to separations categories in
accordance with the separations procedures in effect as of December 31,
2000. Local exchange carriers not subject to price cap regulation, pursuant
to §61.41 of this chapter, may elect to be subject to the provisions of
§36.3(b). Such election must be made prior to July 1, 2001. Local exchange
carriers electing to become subject to §36.3(b) shall not be eligible to
withdraw from such regulation for the duration of the freeze. Local exchange
carriers participating in Association tariffs, pursuant to §69.601 of this
chapter et seq., shall notify the Association prior to July 1, 2001, of such
intent to be subject to the provisions of §36.3(b). Local exchange carriers
not participating in Association tariffs shall notify the Commission prior
to July 1, 2001, of such intent to be subject to the provisions of §36.3(b).
(c) Effective July 1, 2001, through June 30, 2006, any local exchange
carrier that sells or otherwise transfers exchanges, or parts thereof, to
another carrier's study area shall continue to utilize the factors and, if
applicable, category relationships as specified in §§36.3(a) and (b).
(d) Effective July 1, 2001, through June 30, 2006, any local exchange
carrier that buys or otherwise acquires exchanges or part thereof, shall
calculate new, composite factors and, if applicable, category relationships
based on a weighted average of both the seller's and purchaser's factors and
category relationships calculated pursuant to §§36.3(a) and 36.3(b). This
weighted average should be based on the number of access lines currently
being served by the acquiring carrier and the number of access lines in the
acquired exchanges.
(1) To compute the composite allocation factors and, if applicable, the
composite category percentage relationships of the acquiring company, the
acquiring carrier shall first sum its existing (pre-purchase) access lines
(A) with the total access lines acquired from selling company (B). Then,
multiply its factors and category relationship percentages by (A/(A+B)) and
those of the selling company by (B/(A+B)) and sum the results.
(2) For carriers subject to a freeze of category relationships, the
acquiring carrier should remove all categories of investment from the
selling carrier's list of frozen category relationships where no such
category investment exists within the sold exchange(s). The seller's
remaining category relationships must then be increased proportionately to
total 100 percent. Then, the adjusted seller's category relationships must
be combined with those of the acquiring carrier as specified in §36.3(d)(1)
to determine the category relationships for the acquiring carrier's
post-transfer study area.
(e) Any local exchange carrier study area converting from average schedule
company status, as defined in §69.605(c) of this chapter, to cost company
status during the period July 1, 2001, through June 30, 2006, shall, for the
first twelve months subsequent to conversion categorize the
telecommunications plant and expenses and develop separations allocation
factors in accordance with the separations procedures in effect as of
December 31, 2000. Effective July 1, 2001 through June 30, 2006, such
companies shall utilize the separations allocation factors and account
categorization subject to the requirements of §§36.3(a) and (b) based on the
category relationships and allocation factors for the twelve months
subsequent to the conversion to cost company status.
[ 66 FR 33204 , June 21, 2001]
Subpart B—Telecommunications Property
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General
top
§ 36.101 Section arrangement.
top
(a) This subpart is arranged in sections as follows:
General
Telecommunications Plant in Service—Account 2001—36.101 and 36.102.
General Support Facilities—Account 2110—36.111 and 36.112.
Central Office Equipment—Accounts 2210, 2220, 2230—36.121 thru 36.126.
Information Origination/Termination Equipment—Account 2310—36.141 and
36.142.
Cable and Wire Facilities—Account 2410—36.151 thru 36.157.
Amortization Assets—Accounts 2680 and 2690—36.161 and 36.162.
Telecommunications Plant—Other Accounts 2002 thru 2005—36.171.
Rural Telephone Bank Stock—36.172.
Material and Supplies—Accounts 1220, and Cash Working Capital—36.181 and
36.182.
Equal Access Equipment—36.191.
[ 60 FR 12138 , Mar. 6, 1995]
§ 36.102 General.
top
(a) This section contains an outline of the procedures used in the
assignment of Telecommunications Plant in Service—Account 2001 to categories
and the apportionment of the cost assigned to each category among the
operations.
(b) The treatment of rental plant is outlined in §§36.2(c) through 36.2(e).
If the amount of such plant is substantial, the cost may be determined by
using the general procedures set forth for the assignment of the various
kinds of property to categories.
(c) The amount of depreciation deductible from the book cost or “value” is
apportioned among the operations in proportion to the separation of the cost
of the related plant accounts.
General Support Facilities
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§ 36.111 General.
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(a) The costs of the general support facilities are contained in Account
2110, Land and Support Assets. This account contains land, buildings, motor
vehicles, aircraft, special purpose vehicles, garage work equipment, other
work equipment, furniture, office equipment and general purpose computers.
§ 36.112 Apportionment procedure.
top
(a) The costs of the general support facilities of Class A Companies (which
are defined in part 32 of the Commission's Rules) are apportioned among the
operations on the basis of the separation of the costs of the combined Big
Three Expenses which include the following accounts:
Plant Specific Expenses
Central Office Switching Expenses—Accounts 6211 and 6212
Operators Systems Expenses—Account 6220
Central Office Transmission Expenses—Accounts 6231 and 6232
Information Origination/Termination Expenses—Accounts 6311, 6341, 6351, and
6362
Cable and Wire Facilities Expenses—Accounts 6411, 6421, 6422, 6423, 6424,
6426, 6431, and 6441
Plant Non-Specific Expenses
Network Operations Expenses—Accounts 6531, 6532, 6533, 6534, and 6535
Customer Operations Expenses
Marketing—Account 6611 and 6613
Services—Account 6620
(b) The costs of the general support facilities for Class B Companies (which
are defined by part 32 of the Commission's Rules) are apportioned among the
operations on the basis of the separation of the costs of Central Office
Equipment, Information Origination/Termination Equipment, and Cable and Wire
Facilities, combined.
[ 52 FR 17229 , May 6, 1987, as amended at 53 FR 33012 , Aug. 29, 1988; 69 FR 12549 , Mar. 17, 2004]
Central Office Equipment
top
§ 36.121 General.
top
(a) The costs of central office equipment are carried in the following
accounts:
Central Office Switching Account 2210.
Non-digital Switching Account 2211.
Digital Electronic Switching Account 2212.
Operator Systems Account 2220.
Central Office—Transmission Account 2230.
Radio Systems Account 2231.
Circuit Equipment Account 2232.
(b) Records of the cost of central office equipment are usually maintained
for each study area separately by accounts. However, each account frequently
includes equipment having more than one use. Also, equipment in one account
frequently is associated closely with equipment in the same building in
another account. Therefore, the separations procedures for central office
equipment have been designed to deal with categories of plant rather than
with equipment in an account.
(c) In the separation of the cost of central office equipment among the
operations, the first step is the assignment of the equipment in each study
area to categories. The basic method of making this assignment is the
identification of the equipment assignable to each category, and the
determination of the cost of the identified equipment by analysis of
accounting, engineering and other records.
(1) The cost of common equipment not assigned to a specific category, e.g.,
common power equipment, including emergency power equipment, aisle lighting
and framework, including distributing frames, is distributed among the
categories in proportion to the cost of equipment, (excluding power
equipment not dependent upon common power equipment) directly assigned to
categories.
(i) The cost of power equipment used by one category is assigned directly to
that category, e.g., 130 volt power supply provided for circuit equipment.
The cost of emergency power equipment protecting only power equipment used
by one category is also assigned directly to that category.
(ii) Where appropriate, a weighting factor is applied to the cost of circuit
equipment in distributing the power plant costs not directly assigned, in
order to reflect the generally greater power use per dollar of cost of this
equipment.
(d) The second step is the apportionment of the cost of the equipment in
each category among the operations through the application of appropriate
use factors or by direct assignment.
[ 52 FR 17229 , May 6, 1987, as amended at 69 FR 12549 , Mar. 17, 2004]
§ 36.122 Categories and apportionment procedures.
top
(a) The following categories of central office equipment and apportionment
procedures therefore are set forth in §§36.123 through 36.126.
Operator Systems Equipment Category 1.
Tandem Switching Equipment Category 2.
Local Switching Equipment Category 3.
Circuit Equipment Category 4.
§ 36.123 Operator systems equipment—Category 1.
top
(a) Operator systems equipment is contained in Account 2220. It includes all
types of manual telephone switchboards except tandem switchboards and those
used solely for recording of calling telephone numbers in connection with
customer dialed charge traffic. It includes all face equipment, terminating
relay circuits of trunk and toll line circuits, cord circuits, cable turning
sections, subscriber line equipment, associated toll connecting trunk
equipment, number checking facilities, ticket distributing systems,
calculagraphs, chief operator and other desks, operator chairs, and other
such equipment.
(1) Operator systems equipment is generally classified according to
operating arrangements of which the following are typical:
(i) Separate toll boards
(ii) Separate local manual boards
(iii) Combined local manual and toll boards
(iv) Combined toll and DSA boards
(v) Separate DSA and DSB boards
(vi) Service observing boards
(vii) Auxiliary service boards
(viii) Traffic service positions
(2) If switchboards as set forth in §36.123(a) are of the key pulsing type,
the cost of the key pulsing senders, link and trunk finder equipment is
included with the switchboards.
(3) DSB boards include the associated DSB dial equipment, such as link and
sender equipment.
(4) Traffic service position systems include the common control and trunk
equipment in addition to the associated groups of positions wherever
located.
(5) Effective July 1, 2001, through June 30, 2006, study areas subject to
price cap regulation, pursuant to §61.41 of this chapter, shall assign the
average balance of Account 2220, Operator Systems, to the
categories/subcategories, as specified in §36.123(a)(1), based on the
relative percentage assignment of the average balance of Account 2220 to
these categories/subcategories during the twelve month period ending
December 31, 2000.
(6) Effective July 1, 2001 through June 30, 2006, all study areas shall
apportion the costs assigned to the categories/subcategories, as specified
in §36.123(a)(1), among the jurisdictions using the relative use
measurements for the twelve month period ending December 31, 2000 for each
of the categories/subcategories specified in §§36.123 (b) through 36.123(e).
(b) The cost of the following operator systems equipment is apportioned
among the operations on the basis of the relative number of weighted
standard work seconds handled at the switchboards under consideration.
(1) The following types of switchboards at toll centers are generally
apportioned individually:
(i) Separate toll boards. These usually include outward, through and inward
positions in separate lines and associated inward toll switchboard positions
in line.
(ii) Switchboards handling both local and toll, either combined or having
segregated local and toll positions in the same line.
(iii) Switchboards handling both toll and DSA, either combined or having
segregated toll and DSA positions in the same line.
(iv) Traffic service positions, including separately located groups of these
positions when associated with a common basic control unit.
(2) The following types of switchboards at toll centers are apportioned
individually, or by groups of comparable types of boards for each exchange:
(i) Separate local manual boards. This includes the local positions of
manual boards where inward toll positions are in the same line.
(ii) Separate DSA boards.
(iii) Separate DSB boards.
(3) Tributary boards may be treated individually if warranted or they may be
treated on a group basis.
(c) Auxiliary service boards generally handle rate and route, information,
and intercept service at individual or joint positions. The cost of these
boards is apportioned as follows:
(1) The cost of separate directory assistance boards is apportioned among
the operations on the basis of the relative number of weighted standard work
seconds handled at the boards under consideration. Directory assistance
weighted standard work seconds are apportioned among the operations on the
basis of the classification of these weighted standard work seconds as
follows:
(i) Directory assistance weighted standard work seconds first are classified
between calls received over toll directory assistance trunks from operators
or customers and all other directory assistance calls.
(ii) The directory assistance weighted standard work seconds of each type
further are classified separately among the operations on the basis of an
analysis of a representative sample of directory assistance calls of each
type with reference to the locations of the calling and called stations for
each call.
(2) The cost of separate intercept boards and automated intercept systems in
the study area is appportioned among the operations on the basis of the
relative number of subscriber line minutes of use.
(3) The cost of separate rate and route boards is generally included with
the cost of the toll boards served and is apportioned with those boards.
(4) Where more than one auxiliary service is handled at an auxiliary board,
the cost of the board is apportioned among the auxiliary services on the
basis of the relative number of weighted standard work seconds for each
service. The cost of that part of the board allocated to each auxiliary
service is apportioned among the operations in the same manner as for a
separate auxiliary board.
(d) The cost of joint exchange and toll service observing boards is first
apportioned between exchange and toll use on the basis of the relative
number of exchange and toll service observing units at these boards. The
cost of separate toll service observing boards and the toll portion of joint
service observing boards is apportioned between state and interstate
operations on the basis of the relative number of toll minutes of use
associated with the toll messages originating in the offices observed.
(e) Traffic Service Position System (TSPS) investments are apportioned as
follows:
(1) Operator position investments are apportioned on the basis of the
relative weighted standard work seconds for the entire TSPS complex.
(2) Remote trunk arrangement (RTA) investments are apportioned on the basis
of the relative processor real time (i.e., actual seconds) required to
process TSPS traffic originating from the end offices served by each RTA.
(3) The remaining investments at the central control location, such as the
stored program control and memory, is apportioned on the basis of the
relative processor real time (i.e., actual seconds) for the entire TSPS
complex.
[ 52 FR 17229 , May 6, 1987, as amended at 66 FR 33205 , June 21, 2001]
§ 36.124 Tandem switching equipment—Category 2.
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(a) Tandem switching equipment is contained in Accounts 2210, 2211, and
2212. It includes all switching equipment in a tandem central office,
including any associated tandem switchboard positions and any intertoll
switching equipment. Intertoll switching equipment includes switching
equipment used for the interconnection of message toll telephone circuits
with each other or with local or tandem telephone central office trunks,
intertoll dial selector equipment, or intertoll trunk equipment in No. 5
type electronic offices. Equipment, including switchboards used for
recording of calling telephone numbers and other billing information in
connection with customer dialed charge traffic is included with Local
Switching Equipment—Category 3.
(1) At toll center toll offices, intertoll switching equipment comprises
equipment in the toll office used in the interconnection of: Toll center to
toll center circuits; toll center to tributary circuits; tributary to
tributary circuits; toll center to tandem circuits or in the interconnection
of the aforementioned types of circuits with trunks to local offices in the
toll center city, i.e., interconnection with toll switching trunks, operator
trunks, information trunks, testing trunks, etc. Equipment associated with
the local office end of such trunks is included with local switching
equipment or switchboard categories as appropriate.
(2) At tributary offices, this category includes intertoll switching
equipment similar to that at toll center toll offices if it is used in the
interconnection of: Tributary to tributary circuits; tributary to
subtributary circuits; subtributary to subtributary circuits; toll center to
subtributary circuits; or if it is used jointly in the interconnection of
any of the aforementioned types of circuits and in the interconnection of
such toll circuits with trunk circuits for the handling of traffic
terminating in the tributary office. Where comparable equipment has no joint
use but is used only for the handling of traffic terminating in the
tributary office, it is included in the local switching equipment category.
(3) At all switching entities, this category includes intertoll switching
equipment similar to that at toll center toll offices if it is used in the
interconnection of switched private line trunks or TWX switching plant
trunks when these functions are in addition to the message telephone
switching function. Switching entities wholly dedicated to switching of
special services are assigned to Category 3—Local Switching Equipment.
(b) The costs of central office equipment items assigned this category are
to be directly assigned when possible. When direct assignment is not
possible the costs shall be apportioned among the operations on the basis of
the relative number of study area minutes of use of this equipment.
(c) Effective July 1, 2001, through June 30, 2006, study areas subject to
price cap regulation, pursuant to §61.41 of this chapter, shall assign the
average balances of Accounts 2210, 2211, and 2212 to Category 2, Tandem
Switching Equipment based on the relative percentage assignment of the
average balances of Account 2210, 2211, 2212, and 2215 to Category 2, Tandem
Switching Equipment during the twelve month period ending December 31, 2000.
(d) Effective July 1, 2001, through June 30, 2006, all study areas shall
apportion costs in Category 2, Tandem Switching Equipment, among the
jurisdictions using the relative number of study area minutes of use, as
specified in §36.124(b), for the twelve month period ending December 31,
2000. Direct assignment of any subcategory of Category 2 Tandem Switching
Equipment between jurisdictions shall be updated annually.
[ 52 FR 17229 , May 6, 1987, as amended at 66 FR 33205 , June 21, 2001; 69 FR 12549 , Mar. 17, 2004]
§ 36.125 Local switching equipment—Category 3.
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(a) Local switching equipment is included in accounts 2210, 2211, and 2212.
It comprises all central office switching equipment not assigned other
categories. Examples of local switching equipment are basic switching train,
toll connecting trunk equipment, interlocal trunks, tandem trunks,
terminating senders used for toll completion, toll completing train, call
reverting equipment, weather and time of day service equipment, and
switching equipment at electronic analog or digital remote line locations.
Equipment used for the identification, recording and timing of customer
dialed charge traffic, or switched private line traffic ( e.g. transmitters,
recorders, call identity indexers, perforators, ticketers, detectors,
mastertimes) switchboards used solely for recording of calling telephone
numbers in connection with customer dialed charge traffic, or switched
private line traffic (or both) is included in this local switching category.
Equipment provided and used primarily for operator dialed toll or customer
dialed charge traffic except such equipment included in Category 2 Tandem
Switching Equipment is also included in this local switching category. This
includes such items as directors translators, sender registers, out trunk
selectors and facilities for toll intercepting and digit absorption. Special
services switching equipment which primarily performs the switching function
for special services ( e.g. switching equipment, TWX concentrators and
switchboards) is also included in this local switching category.
(1) Local office, as used in §36.125, comprises one or more local switching
entities of the same equipment type (e.g., step-by-step, No. 5 Crossbar) in
an individual location. A local switching entity comprises that local
central office equipment of the same type which has a common intermediate
distributing frame, market group or other separately identifiable switching
unit serving one or more prefixes (NNX codes).
(2) A host/remote local switching complex is composed of an electronic
analog or digital host office and all of its remote locations. A host/remote
local switching complex is treated as one local office. The current
jurisdictional definition of an exchange will apply.
(3) Dial equipment minutes of use (DEM) is defined as the minutes of holding
time of the originating and terminating local switching equipment. Holding
time is defined in the Glossary.
(4) The interstate allocation factor is the percentage of local switching
investment apportioned to the interstate jurisdiction.
(5) The interstate DEM factor is the ratio of the interstate DEM to the
total DEM. A weighted interstate DEM factor is the product of multiplying a
weighting factor, as defined in paragraph (f) of this section, to the
interstate DEM factor. The state DEM factor is the ratio of the state DEM to
the total DEM.
(b) Beginning January 1, 1993, Category 3 investment for study areas with
50,000 or more access lines is apportioned to the interstate jurisdiction on
the basis of the interstate DEM factor. Category 3 investment for study
areas with 50,000 or more access lines is apportioned to the state
jurisdiction on the basis of the state DEM factor.
(c)–(e) [Reserved]
(f) Beginning January 1, 1998, for study areas with fewer than 50,000 access
lines, Category 3 investment is apportioned to the interstate jurisdiction
by the application of an interstate allocation factor that is the lesser of
either .85 or the sum of the interstate DEM factor specified in paragraph
(a)(5) of this section, and the difference between the 1996 interstate DEM
factor and the 1996 interstate DEM factor multiplied by a weighting factor
as determined by the table below. The Category 3 investment that is not
assigned to the interstate jurisdiction pursuant to this paragraph is
assigned to the state jurisdiction.
Number of access lines in service in study area Weighting
factor
0–10,000 3.0
10,001–20,000 2.5
20,001–50,000 2.0
50,001–or above 1.0
(g) For purposes of this section, an access line is a line that does not
include WATS access lines, special access lines or private lines.
(h) Effective July 1, 2001, through June 30, 2006, study areas subject to
price cap regulation, pursuant to §61.41 of this chapter, shall assign the
average balances of Accounts 2210, 2211, and 2212 to Category 3, Local
Switching Equipment, based on the relative percentage assignment of the
average balances of Account 2210, 2211, 2212, and 2215 to Category 3, during
the twelve month period ending December 31, 2000.
(i) Effective July 1, 2001, through June 30, 2006, all study areas shall
apportion costs in Category 3, Local Switching Equipment, among the
jurisdictions using relative dial equipment minutes of use for the twelve
month period ending December 31, 2000.
(j) If during the period from January 1, 1997, through June 30, 2006, the
number of a study area's access lines increased or will increase such that,
under §36.125(f) the weighting factor would be reduced, that lower weighting
factor shall be applied to the study area's 1996 unweighted interstate DEM
factor to derive a new local switching support factor. The study area will
restate its Category 3, Local Switching Equipment factor under §36.125(f)
and use that factor for the duration of the freeze period.
[ 52 FR 17229 , May 6, 1987, as amended at 53 FR 33011 , 33012, Aug. 29, 1988;
62 FR 32946 , June 17, 1997; 63 FR 2124 , Jan. 13, 1998; 66 FR 33205 , June 21,
2001; 69 FR 12549 , Mar. 17, 2004; 71 FR 65745 , Nov. 9, 2006]
§ 36.126 Circuit equipment—Category 4.
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(a) For the purpose of this section, the term “Circuit Equipment”
encompasses the Radio Systems and Circuit Equipment contained in Accounts
2230 through 2232 respectively. It includes central office equipment, other
than switching equipment and automatic message recording equipment, which is
used to derive communications transmission channels or which is used for the
amplification, modulation, regeneration, testing, balancing or control of
signals transmitted over communications transmission channels. Examples of
circuit equipment in general use include:
(1) Carrier telephone and telegraph system terminals.
(2) Telephone and telegraph repeaters, termination sets, impedance
compensators, pulse link repeaters, echo suppressors and other intermediate
transmission amplification and balancing equipment except that included in
switchboards.
(3) Radio transmitters, receivers, repeaters and other radio central office
equipment except message switching equipment associated with radio systems.
(4) Composite ringers, line signaling and switching pad circuits.
(5) Concentration equipment.
(6) Composite sets and repeating coils.
(7) Program transmission amplifiers, monitoring devices and volume
indicators.
(8) Testboards, test desks, repair desks and patch bays, including those
provided for test and control, and for telegraph and transmission testing.
(b) For apportionment among the operations, the cost of circuit equiment is
assigned to the following subsidiary categories:
(1) Exchange Circuit Equipment—Category 4.1. (i) Wideband Exchange Line
Circuit Equipment—Category 4.11.
(ii) Exchange Trunk Circuit Equipment (Wideband and Non-Wideband)—Category
4.12.
(iii) Exchange Line Circuit Equipment Excluding Wideband—Category 4.13.
(2) Interexchange Circuit Equipment—Category 4.2. (i) Interexchange Circuit
Equipment Furnished to Another Company for Interstate Use—Category 4.21.
(ii) Interexchange Circuit Equipment Used for Wideband Services including
Satellite and Earth Station Equipment used for Wideband Service—Category
4.22.
(iii) All Other Interexchange Circuit Equipment—Category 4.23.
(3) Host/Remote Message Circuit Equipment—Category 4.3. (4) In addition, for
the purpose of identifying and separating property associated with special
services, circuit equipment included in Categories 4.12 (other than wideband
equipment) 4.13 and 4.23 is identified as either basic circuit equipment,
i.e., equipment that performs functions necessary to provide and operate
channels suitable for voice transmission (telephone grade channels), or
special circuit equipment, i.e., equipment that is peculiar to special
service circuits. Carrier telephone terminals and carrier telephone
repeaters are examples of basic circuit equipment is general use, while
audio program transmission amplifiers, bridges, monitoring devices and
volume indicators, telegraph carrier terminals and telegraph repeaters are
examples of special circuit equipment in general use. Cost of exchange
circuit equipment included in Categories 4.12 and 4.13 and the interexchange
circuit equipment in Categories 4.21, 4.22 and 4.23 are segregated between
basic circuit equipment and special circuit equipment only at those
locations where amounts of interexchange and exchange special circuit
equipment are significant. Where such segregation is not made, the total
costs in these categories are classified as basic circuit equipment.
(5) Effective July 1, 2001, through June 30, 2006, study areas subject to
price cap regulation, pursuant to §61.41, shall assign the average balances
of Accounts 2230 through 2232 to the categories/subcategories as specified
in §§36.126(b)(1) through (b)(4) based on the relative percentage assignment
of the average balances of Accounts 2230 through 2232 costs to these
categories/subcategories during the twelve month period ending December 31,
2000.
(c) Apportionment of Exchange Circuit Equipment Among the Operations:
(1) Wideband Exchange Line Circuit Equipment—Category 4.11—The cost of
exchange circuit equipment in this category is determined separately for
each wideband facility. The respective costs are allocated to the
appropriate operation in the same manner as the related exchange line cable
and wire facilities described in §36.155.
(2) Exchange Trunk Circuit Equipment (Wideband and Non-Wideband)—Category
4.12—The cost of exchange circuit equipment associated with this category
for the study area is allocated to the appropriate operation in the same
manner as the related exchange trunk cable and wire facilities as described
in §36.155.
(3) Exchange Line Circuit Equipment Excluding Wideband—Category 4.13—The
cost of Circuit Equipment associated with exchange line plant excluding
wideband for the study area is assigned to subcategories and is allocated to
the appropriate operation in the same manner as the related exchange line
cable and wire facilities for non-wideband service as described in §36.154.
(4) Effective July 1, 2001, through June 30, 2006, all study areas shall
apportion costs in the categories/subcategories, as specified in
§§36.126(b)(1) through (b)(4), among the jurisdictions using the relative
use measurements or factors, as specified in §§36.126(c)(1) through (c)(3)
for the twelve month period ending December 31, 2000. Direct assignment of
any subcategory of Category 4.1 Exchange Circuit Equipment to the
jurisdictions shall be updated annually.
(d) Apportionment of Interexchange Circuit Equipment among the Operations:
Procedures to be Used by Interexchange Carriers. (1) Interexchange Circuit
Equipment Furnished to Another Company for Interstate Use—Category 4.21—This
category comprises that circuit equipment provided for the use of another
company as an integral part of its interexchange circuit facilities used
wholly for interstate services. This category includes such circuit
equipment as telephone carrier, terminals telegraph carrier terminals, and
microwave systems used wholly for interstate services. The total cost of the
circuit equipment in this category for the study area is assigned to the
interstate operation.
(2) Interexchange Circuit Equipment Used for Wideband Service—Category
4.22—This category includes the circuit equipment portion of interexchange
channels used for wideband services. The cost of interexchange circuit
equipment in this category is determined separately for each wideband
channel and is segregated between message and private line services on the
basis of the use of the channels provided. The respective costs are
allocated to the appropriate operation in the same manner as the related
interexchange cable and wire facilities as described in §36.156.
(3) All Other Interexchange Circuit Equipment—Category 4.23—This category
includes the cost of all interexchange circuit equipment not assigned to
Categories 4.21 and 4.22. Interexchange carriers shall freeze the allocation
factors for Category 4.23 investment at levels reached on December 31, 1985,
derived by using the procedures in effect at that time. On January 1, 1988,
and thereafter, that frozen allocation factor shall be applied to each
interexchange carrier's Category 4.23 investment to derive the interstate
allocation. On January 1, 1988, and thereafter, the amount of investment
allocated to the interstate jurisdiction will vary but the relative
proportion of the total investment that is allocated to the interstate
jurisdiction will remain frozen at 1985 levels.
(e) Apportionment of Interexchange Circuit Equipment among the Operations:
Procedures To Be Used by Exchange Carriers. (1) Interexchange Circuit
Equipment Furnished to Another Company for Interstate Use—Category 4.21—This
category comprises that circuit equipment provided for the use of another
company as an integral part of its interexchange circuit facilities used
wholly for interstate services. This category includes such circuit
equipment as telephone carrier terminals telegraph carrier terminals, and
microwave systems used wholly for interstate services. The total cost of the
circuit equipment in this category for the study area is assigned to the
interstate operation.
(2) Interexchange Circuit Equipment Used for Wideband Service—Category
4.22—This category includes the circuit equipment portion of interexchange
channels used for wideband services. The cost of interexchange circuit
equipment in this category is determined separately for each wideband
channel and is segregated between message and private line services on the
basis of the use of the channels provided. The respective costs are
allocated to the appropriate operation in the same manner as the related
interexchange cable and wire facilities described in §36.156.
(3) All Other Interexchange Circuit Equipment—Category 4.23—This category
includes the cost of all interexchange circuit equipment not assigned to
Categories 4.21 and 4.22. The cost of interexchange basic circuit equipment
used for the following classes of circuits is included in this category:
Jointly used message circuits, i.e. , message switching plant circuits
carrying messages from the state and interstate operations; circuits used
for state private line service; and circuits used for state private line
services.
(i) An average interexchange circuit equipment cost per equivalent
interexchange telephone termination for all circuits is determined and
applied to the equivalent interexchange telephone termination counts of each
of the following classes of circuits: Private Line, State Private Line,
Message. The cost of interstate private line circuits is assigned directly
to the interstate operation. The cost of state private line circuits is
assigned directly to the state operation. The cost of message circuits is
apportioned between the state and interstate operations on the basis of the
relative number of study area conversation-minutes applicable to such
facilities.
(ii) [Reserved]
(iii) The cost of special circuit equipment is segregated among telegraph
grade private line services and other private line services based on an
analysis of the use of the equipment and in accordance with §36.126(b)(4).
The special circuit equipment cost assigned to telegraph grade and other
private line services is directly assigned to the appropriate operations.
(4) Effective July 1, 2001, through June 30, 2006, all study areas shall
apportion costs in the categories/subcategories specified in §§36.126(e)(1)
through (e)(3) among the jurisdictions using relative use measurements or
factors, as specified in §§36.126(e)(1) through (e)(3) for the twelve month
period ending December 31, 2000. Direct assignment of any subcategory of
Category 4.2 Interexchange Circuit Equipment to the jurisdictions shall be
updated annually.
(f) Apportionment of Host/Remote Message Circuit Equipment Among the
Operations.
(1) Host/Remote Message Circuit Equipment—Category 4.3. This category
includes message host/remote location circuit equipment for which a message
circuit switching function is performed at the host central office
associated with cable and wire facilities as described in §36.152(c).
(i) The category 4.3 cost of host/remote circuit equipment assigned to
message services for the study area is apportioned among the exchange,
intrastate toll, and interstate toll operations on the basis of the
assignment of host/remote message cable and wire facilities as described in
§36.157.
(ii) [Reserved]
(2) Effective July 1, 2001, through June 30, 2006, all study areas shall
apportion costs in the subcategory specified in §36.126(f)(1) among the
jurisdictions using the allocation factor, as specified in §36.126(f)(1)(i),
for this subcategory for the twelve month period ending December 31, 2000.
Direct assignment of any Category 4.3 Host/Remote Message Circuit Equipment
to the jurisdictions shall be updated annually.
[ 52 FR 17229 , May 6, 1987, as amended at 53 FR 33012 Aug. 29, 1988; 66 FR 33205 , June 21, 2001; 69 FR 12550 , Mar. 17, 2004; 71 FR 65745 , Nov. 9, 2006]
Information Origination/Termination (IOT) Equipment
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§ 36.141 General.
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(a) Information Origination/Termination Equipment is maintained in Account
2310 and includes station apparatus, embedded customer premises wiring,
large private branch exchanges, public telephone terminal equipment, and
other terminal equipment.
(b) The costs in Account 2310 shall be segregated between Other Information
Origination/Termination Equipment—Category 1, and New Customer Premises
Equipment—Category 2 by an analysis of accounting, engineering and other
records.
(c) Effective July 1, 2001, through June 30, 2006, local exchange carriers
subject to price cap regulation, pursuant to §61.41 of this chapter, shall
assign the average balance of Account 2310 to the categories, as specified
in §36.141(b), based on the relative percentage assignment of the average
balance of Account 2310 to these categories during the twelve month period
ending December 31, 2000.
[ 52 FR 17229 , May 6, 1987, as amended at 66 FR 33206 , June 21, 2001]
§ 36.142 Categories and apportionment procedures.
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(a) Other Information Origination/Termination Equipment—Category 1. This
category includes the cost of other information origination/termination
equipment not assigned to Category 2. The costs of other information
origination/termination equipment are allocated pursuant to the factor that
is used to allocate subcategory 1.3 Exchange Line C&WF.
(b) Customer Premises Equipment—Category 2. This category includes the cost
of Customer Premises Equipment that was detariffed pursuant to the Second
Computer Inquiry decision. It shall be assigned to the state operations.
(c) Effective July 1, 2001, through June 30, 2006, all study areas shall
apportion costs in the categories, as specified in §36.141(b), among the
jurisdictions using the relative use measurements or factors, as specified
in §36.142(a), for the twelve month period ending December 31, 2000. Direct
assignment of any category of Information Origination/Termination Equipment
to the jurisdictions shall be updated annually.
[ 52 FR 17229 , May 6, 1987, as amended at 66 FR 33206 , June 21, 2001; 71 FR 65746 , Nov. 9, 2006]
Cable and Wire Facilities
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§ 36.151 General.
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(a) Cable and Wire Facilities, Account 2410, includes the following types of
communications plant in service: Poles and antenna supporting structures,
aerial cable, underground cable, buried cable, submarine cable, deep sea
cable, intrabuilding network cable, aerial wire and conduit systems.
(b) For separations purposes, it is necessary to analyze the cable and wire
facilities classified in subordinate records in order to determine their
assignment to the categories listed in the following paragraphs.
(c) In the separation of the cost of cable and wire facilities among the
operations, the first step is the assignment of the facilities to certain
categories. The basic method of making this assignment is the identification
of the facilities assignable to each category and the determination of the
cost of the facilities so identified. Because of variations among companies
in the character of the facilities and operating conditions, and in the
accounting and engineering records maintained, the detailed methods
followed, of necessity, will vary among the companies. The general
principles to be followed, however, will be the same for all companies.
(d) The second step is the apportionment of the cost of the facilities in
each category among the operations through the application of appropriate
factors or by direct assignment.
§ 36.152 Categories of Cable and Wire Facilities (C&WF).
top
(a) C&WF are basically divided between exchange and interexchange. Exchange
C&WF consists of the following categories:
(1) Exchange Line C&WF Excluding Wideband —Category 1—This category includes
C&W facilities between local central offices and subscriber premises used
for message telephone, private line, local channels, and for circuits
between control terminals and radio stations providing very high frequency
maritime service or urban or highway mobile service.
(2) Wideband and Exchange Trunk C&WF—Category 2—This category includes all
wideband, including Exchange Line Wideband and C&WF between local central
offices and Wideband facilities. It also includes C&WF between central
offices or other switching points used by any common carrier for interlocal
trunks wholly within an exchange or metropolitan service area, interlocal
trunks with one or both terminals outside a metropolitan service area
carrying some exchange traffic, toll connecting trunks, tandem trunks
principally carrying exchange traffic, the exchange trunk portion of WATS
access lines, the exchange trunk portion of private line local channels, and
the exchange trunk portion of circuits between control terminals and radio
stations providing very high frequency maritime service or urban or highway
mobile service.
(3) The procedures for apportioning the cost of exchange cable and wire
facilites among the operations are set forth in §§36.154 and 36.155.
(b) Interexchange C&WF—Category 3—This category includes the C&WF used for
message toll and toll private line services. It includes cable and wire
facilities carrying intertoll circuits, tributary circuits, the
interexchange channel portion of special service circuits, circuits between
control terminals and radio stations used for overseas or coastal harbor
service, interlocal trunks between offices in the different exchange or
metropolitan service areas carrying only message toll traffic and certain
tandem trunks which carry principally message toll traffic.
(1) The procedures for apportioning the cost of interexchange cable and wire
facilities among the operations are set forth in §36.156.
(c) Host/Remote Message C&WF—Category 4—This category includes the cost of
message host/remote location C&WF for which a message circuit switching
function is performed at the host central office. It applies to C&WF between
host offices and all remote locations. The procedures for apportioning the
cost of these facilities among the operations are set forth in §36.157.
(d) Effective July 1, 2001, through June 30, 2006, study areas subject to
price cap regulation, pursuant to §61.41, shall assign the average balance
of Account 2410 to the categories/subcategories, as specified in §§36.152(a)
through (c), based on the relative percentage assignment of the average
balance of Account 2410 to these categories/subcategories during the twelve
month period ending December 31, 2000.
[ 52 FR 17229 , May 6, 1987, as amended at 66 FR 33206 , June 21, 2001; 71 FR 65746 , Nov. 9, 2006]
§ 36.153 Assignment of Cable and Wire Facilities (C&WF) to categories.
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(a) Cable consists of: Aerial cable, underground cable, buried cable,
submarine cable, deep sea cable and intrabuilding network cable. Where an
entire cable or aerial wire is assignable to one category, its cost and
quantity are, where practicable, directly assigned.
(1) Cable. (i) There are two basic methods for assigning the cost of cable
to the various categories. Both of them are on the basis of conductor cross
section. The methods are as follows:
(A) By section of cable, uniform as to makeup and relative use by
categories. From an analysis of cable engineering and assignment records,
determine in terms of equivalent gauge the number of pairs in use or
reserved, for each category. The corresponding percentages of use, or
reservation, are applied to the cost of the section of cable, i.e., sheath
meters times unit cost per meter, to obtain the cost assignable to each
category.
(B) By using equivalent pair kilometers, i.e., pair kilometers expressed in
terms of equivalent gauge. From an analysis of cable engineering and
assignment records, determine the equivalent pair kilometers in use for each
category by type of facility, e.g., quadded, paired. The equivalent pair
kilometers are then divided by a cable fill factor to obtain the equivalent
pair kilometers in plant. The total equivalent pair kilometers in plant
assigned to each category is summarized by type of facility, e.g., quadded
and paired, and priced at appropriate average unit costs per equivalent pair
kilometer in plant. If desired, this study may be made in terms of circuit
kilometers rather than physical pair kilometers, with average cost and fill
data consistent with the basis of the facilities kilometer count.
(ii) In the assignment of the cost of cable under the two basic methods
described in §36.153(a)(1)(i) consideration is given to the following:
(A) Method (A) described in §36.153(a)(1)(i)(A) will probably be found more
desirable where there is a relatively small amount of cable of variable
make-up and use by categories. Conversely, method (B) described in
§36.153(a)(1)(i)(B) will probably be more desirable where there is a large
amount of cable of variable make-up and use by categories. However, in some
cases a combination of both methods may be desirable.
(B) It will be desirable in some cases to determine the amount assignable to
a particular category by deducting from the total the sum of the amounts
assigned to all other categories.
(C) For use in the assignment of poles to categories, the equivalent sheath
kilometers of aerial cable assigned to each category are determined. For
convenience, these quantities are determined in connection with assignment
of cable costs.
(D) Where an entire cable is assignable to one category, its costs and
quantity are, where practicable, directly assigned.
(iii) For cables especially arranged for high-frequency transmission such as
shielded, disc-insulated and coaxial, recognition is given to the additional
costs which are charged to the high-frequency complement.
(2) Cable Loading. (i) Methods for assigning the cost of loading coils,
cases, etc., to categories are comparable with those used in assigning the
associated cable to categories. Loading associated with cable which is
directly assigned to a given category is also directly assigned. The
remaining loading is assigned to categories in either of the following
bases:
(A) By an analysis of the use made of the loading facilities where a loading
coil case includes coils assignable to more than one category, e.g., in the
case of a single gauge uniformly loaded section, the percentage used in the
related cable assignment are applicable, or
(B) By pricing out each category by determining the pair meters of loaded
pairs assigned to each category and multiplying by the unit cost per pair
meter of loading by type.
(3) Other Cable Plant. (i) In view of the small amounts involved, the cost
of all protected terminals and gas pressure contactor terminals in the toll
cable subaccounts is assigned to the appropriate Interexchange Cable & Wire
Facilities categories. The cost of all other terminals in the exchange and
toll cable subaccounts is assigned to Exchange Cable and Wire Facilities.
(b) Aerial Wire. (1) The cost of wire accounted for as exchange is assigned
to the appropriate Exchange Cable & Wire Facilities categories. The cost of
wire accounted for as toll, which is used for exchange, is also assigned to
the appropriate Exchange Cable & Wire Facilities categories. The cost of the
remaining wire accounted for as toll is assigned to the appropriate
Interexchange Cable & Wire Facilities categories as described in §36.156.
For companies not maintaining exchange and toll subaccounts, it is necessary
to review the plant records and identify wire plant by use. The cost of wire
used for providing circuits directly assignable to a category is assigned to
that category. The cost of wire used for providing circuit facilities
jointly used for exchange and interexchange lines is assigned to categories
on the basis of the relative number of circuit kilometers involved.
(c) Poles and Antenna Supporting Structures. (1) In the assignment of these
costs, anchors, guys, crossarms, antenna supporting structure, and
right-of-way are included with the poles.
(2) Poles. (i) The cost of poles is assigned to categories based on the
ratio of the cost of poles to the total cost of aerial wire and aerial
cable.
(d) Conduit Systems. (1) The cost of conduit systems is assigned to
categories on the basis of the assignment of the cost of underground cable.
[ 53 FR 17229 , May 6, 1987, as amended at 53 FR 33012 , Aug. 29, 1988; 58 FR 44905 , Aug. 25, 1993]
§ 36.154 Exchange Line Cable and Wire Facilities (C&WF)—Category
1—apportionment procedures.
top
(a) Exchange Line C&WF—Category 1. The first step in apportioning the cost
of exchange line cable and wire facilities among the operations is the
determination of an average cost per working loop. This average cost per
working loop is determined by dividing the total cost of exchange line cable
and wire Category 1 in the study area by the sum of the working loops
described in subcategories listed below. The subcategories are:
Subcategory 1.1—State Private Lines and State WATS Lines. This subcategory
shall include all private lines and WATS lines carrying exclusively state
traffic as well as private lines and WATS lines carrying both state and
interstate traffic if the interstate traffic on the line involved
constitutes ten percent or less of the total traffic on the line.
Subcategory 1.2—Interstate private lines and interstate WATS lines. This
subcategory shall include all private lines and WATS lines that carry
exclusively interstate traffic as well as private lines and WATS lines
carrying both state and interstate traffic if the interstate traffic on the
line involved constitutes more than ten percent of the total traffic on the
line.
Subcategory 1.3—Subscriber or common lines that are jointly used for local
exchange service and exchange access for state and interstate interexchange
services.
(b) The costs assigned to subcategories 1.1 and 1.2 shall be directly
assigned to the appropriate jurisdication.
(c) Effective January 1, 1986, 25 percent of the costs assigned to
subcategory 1.3 shall be allocated to the interstate jurisdiction.
(d)–(f) [Reserved]
(g) Effective July 1, 2001, through June 30, 2006, all study areas shall
apportion Subcategory 1.3 Exchange Line C&WF among the jurisdictions as
specified in §36.154(c). Direct assignment of subcategory Categories 1.1 and
1.2 Exchange Line C&WF to the jurisdictions shall be updated annually as
specified in §36.154(b).
[ 52 FR 17229 , May 6, 1987, as amended at 53 FR 33012 , Aug. 29, 1988; 54 FR 31033 , July 26, 1989; 66 FR 33206 , June 21, 2001; 67 FR 17014 , Apr. 9, 2002;
71 FR 65746 , Nov. 9, 2006]
§ 36.155 Wideband and exchange trunk (C&WF)—Category 2—apportionment
procedures.
top
(a) The cost of C&WF applicable to this category shall be directly assigned
where feasible. If direct assignment is not feasible, cost shall be
apportioned between the state and interstate jurisdictions on the basis of
the relative number of minutes of use.
(b) Effective July 1, 2001, through June 30, 2006, all study areas shall
apportion Category 2 Wideband and exchange trunk C&WF among the
jurisdictions using the relative number of minutes of use, as specified in
§36.155(a), for the twelve-month period ending December 31, 2000. Direct
assignment of any Category 2 equipment to the jurisdictions shall be updated
annually.
[ 52 FR 17229 , May 6, 1987, as amended at 66 FR 33206 , June 21, 2001]
§ 36.156 Interexchange Cable and Wire Facilities (C&WF)—Category
3—apportionment procedures.
top
(a) An average interexchange cable and wire facilities cost per equivalent
interexchange telephone circuit kilometer for all circuits in Category 3 is
determined and applied to the equivalent interexchange telephone circuit
kilometer counts of each of the classes of circuits.
(b) The cost of C&WF applicable to this category shall be directly assigned
where feasible. If direct assignment is not feasible, cost shall be
apportioned between the state and interstate jurisdiction on the basis of
conversation-minute kilometers as applied to toll message circuits, etc.
(c) Effective July 1, 2001, through June 30, 2006, all study areas shall
directly assign Category 3 Interexchange Cable and Wire Facilities C&WF
where feasible. All study areas shall apportion the non-directly assigned
costs in Category 3 equipment to the jurisdictions using the relative use
measurements, as specified in §36.156 (b), during the twelve-month period
ending December 31, 2000.
[ 58 FR 44905 , Aug. 25, 1993, as amended at 66 FR 33206 , June 21, 2001; 71 FR 65746 , Nov. 9, 2006]
§ 36.157 Host/remote message Cable and Wire Facilities (C&WF)—Category
4—apportionment procedures.
top
(a) Host/Remote Message C&WF—Category 4. The cost of host/remote C&WF used
for message circuits, i.e., circuits carrying only message traffic, is
included in this category.
(1) The cost of host/remote message C&WF excluding WATS closed end access
lines for the study area is apportioned on the basis of the relative number
of study area minutes-of-use kilometers applicable to such facilities.
(2) The cost of host/remote message C&WF used for WATS closed end access for
the study area is directly assigned to the appropriate jurisdiction.
(b) Effective July 1, 2001, through June 30, 2006, all study areas shall
apportion Category 4 Host/Remote message Cable and Wire Facilities C&WF
among the jurisdictions using the relative number of study area
minutes-of-use kilometers applicable to such facilities, as specified in
§36.157(a)(1), for the twelve month period ending December 31, 2000. Direct
assignment of any Category 4 equipment to the jurisdictions shall be updated
annually.
[ 52 FR 17229 , May 6, 1987, as amended at 58 FR 44905 , Aug. 25, 1993; 66 FR 33206 , June 21, 2001]
Amortizable Assets
top
§ 36.161 Tangible assets—Account 2680.
top
(a) Tangible Assets, Account 2680 includes the costs of property acquired
under capital leases and the original cost of leasehold improvements.
(b) The costs of capital leases are apportioned among the operations based
on similar plant owned or by analysis.
(c) The cost of leasehold improvements are apportioned among the operations
in direct proportion to the costs of the related primary account.
§ 36.162 Intangible assets—Account 2690.
top
(a) Intangible Assets, Account 2690 includes the costs of organizing and
incorporating the company, franchises, patent rights, and other intangible
property having a life of more than one year.
(b) The amount included in this account is apportioned among the operations
on the basis of the separation of the cost of Telecommunications Plant In
Service, Account 2001, excluding the Intangible Assets, Account 2690.
Telecommunications Plant—Other
top
§ 36.171 Property held for future telecommunications use—Account 2002;
Telecommunications plant under construction—Account 2003; and
Telecommunications plant adjustment—Account 2005.
top
The amounts carried in Accounts 2002, 2003, and 2005 are apportioned among
the operations on the basis of the apportionment of Account 2001,
Telecommunications Plant in Service.
[ 60 FR 12138 , Mar. 6, 1995]
Rural Telephone Bank Stock
top
§ 36.172 Other noncurrent assets—Account 1410.
top
(a) The amounts carried in this account shall be separated into subsidiary
record categories:
(1) Class B RTB Stock and
(2) All other.
(b) The amounts contained in category (2) all other of §36.172(a)(2), shall
be excluded from part 36 jurisdictional separations.
(c) The amounts contained in category (1) Class B RTB stock of
§36.172(a)(1), shall be allocated based on the relative separations of
Account 2001, Telephone Plant in Service.
[ 52 FR 17229 , May 6, 1987, as amended at 53 FR 33012 , Aug. 29, 1988]
Material and Supplies and Cash Working Capital
top
§ 36.181 Material and supplies—Account 1220.
top
(a) The amount included in Account 1220 is apportioned among the operations
on the basis of the apportionment of the cost of cable and wire facilities
in service. Any amounts included in Account 1220 associated with the
Customer Premises portion of Account 2310 equipment, shall be excluded from
the amounts which are allocated to the interstate operation.
§ 36.182 Cash working capital.
top
(a) The amount for cash working capital, if not determined directly for a
particular operation, is apportioned among the operations on the basis of
total expenses less non-cash expense items.
Equal Access Equipment
top
§ 36.191 Equal access equipment.
top
(a) Equal access investment includes only initial incremental expenditures
for hardware and other equipment related directly to the provision of equal
access which would not be required to upgrade the capabilities of the office
involved absent the provision of equal access. Equal access investment is
limited to such expenditures for converting central offices which serve
competitive interexchange carriers or where there has been a bona fide
request for conversion to equal access.
(b) Equal access investment is first segregated from all other amounts in
the primary accounts.
(c) The equal access investment determined in this manner is allocated
between the jurisdictions on the basis of relative state and interstate
equal access traffic including interstate interLATA equal access traffic,
intrastate interLATA equal access traffic, and BOC interstate corridor toll
traffic as well as AT&T and OCC intraLATA equal access usage. Local exchange
traffic and BOC intraLATA toll traffic is excluded. In the case of
independent telephone companies, intrastate toll service provided by the
independent local exchange company is excluded in determining intrastate
usage, but intrastate toll service provided by long distance carriers
affiliated with the local exchange company is included.
(d) Effective July 1, 2001, through June 30, 2006, all study areas shall
apportion Equal Access Equipment, as specified in §36.191(a), among the
jurisdictions using the relative state and interstate equal access traffic,
as specified in §36.191(c), for the twelve month period ending December 31,
2000.
[ 52 FR 17229 , May 6, 1987, as amended at 53 FR 33012 , Aug. 29, 1988; 66 FR 33206 , June 21, 2001]
Subpart C—Operating Revenues and Certain Income Accounts
top
General
top
§ 36.201 Section arrangement.
top
(a) This subpart is arranged in sections as follows:
General 36.202
Operating Revenues 36.211
Basic local services revenue—Account 5000 (Class B telephone companies);
Basic area revenue—Account 5001 (Class A telephone companies) 36.212
Network Access Revenues—Accounts 5081 thru 5083 36.213
Long Distance Message Revenue—Account 5100 36.214
Miscellaneous Revenue—Account 5200 36.215
Uncollectible Revenue—Account 5300 36.216
Certain Income Accounts:
Other Operating Income and Expenses—Account 7100 36.221
Nonoperating Income and Expenses—Account 7300 36.222
Interest and Related Items—Account 7500 36.223
Extraordinary Items—Account 7600 36.224
Income Effect of Jurisdictional Ratemaking Differences—Account 7910 36.225
[ 69 FR 12550 , Mar. 17, 2004]
§ 36.202 General.
top
(a) This section sets forth procedures for the apportionment among the
operations of operating revenues and certain income and expense accounts.
(b) Except for the Network Access Revenues, subsidiary record categories are
maintained for all revenue accounts in accordance with the requirements of
part 32. These subsidiary records identify services for the appropriate
jurisdiction and will be used in conjunction with apportionment procedures
stated in this manual.
[ 52 FR 17299 , May 6, 1987, as amended at 69 FR 12550 , Mar. 17, 2004]
Operating Revenues
top
§ 36.211 General.
top
(a) Operating revenues are included in the following accounts:
Account title Account No.
Basic local service revenue (Class B telephone companies) 5000
Basic Area Revenue (Class A telephone companies) 5001
Network Access Revenues:
End User Revenue 5081
Switched Access Revenue 5082
Special Access Revenue 5083
Long Distance Message Revenue 5100
Miscellaneous Revenue 5200
Uncollectible Revenue 5300
[ 69 FR 12550 , Mar. 17, 2004]
§ 36.212 Basic local services revenue—Account 5000 (Class B telephone
companies); Basic area revenue—Account 5001 (Class A telephone companies).
top
(a) Local private line revenues from broadcast program transmission audio
services and broadcast program transmission video services are assigned to
the interstate operation.
(b) Revenues that are attributable to the origination or termination of
interstate FX or CCSA like services shall be assigned to the interstate
jurisdiction.
(c) Wideband Message Service revenues from monthly and miscellaneous
charges, service connections, move and change charges, are apportioned
between state and interstate operations on the basis of the relative number
of minutes-of-use in the study area. Effective July 1, 2001, through June
30, 2006, all study areas shall apportion Wideband Message Service revenues
among the jurisdictions using the relative number of minutes of use for the
twelve-month period ending December 31, 2000.
(d) All other revenues in this account are assigned to the exchange
operation based on their subsidiary record categories or on the basis of
analysis and studies.
[ 52 FR 17229 , May 6, 1987, as amended at 66 FR 33206 , June 21, 2001; 71 FR 65746 , Nov. 9, 2006]
§ 36.213 Network access services revenues.
top
(a) End User Revenue—Account 5081. Revenues in this account are directly
assigned on the basis of analysis and studies.
(b) Switched Access Revenue—Account 5082. Revenues in this account are
directly assigned on the basis of analysis and studies.
(c) Special Access Revenue—Account 5083. Revenues in this account are
directly assigned on the basis of analysis and studies.
[ 52 FR 17299 , May 6, 1987, as amended at 69 FR 12550 , Mar. 17, 2004]
§ 36.214 Long distance message revenue—Account 5100.
top
(a) Wideband message service revenues from monthly and miscellaneous
charges, service connections, move and change charges, are apportioned
between state and interstate operations on the basis of the relative number
of minutes-of-use in the study area. Effective July 1, 2001 through June 30,
2006, all study areas shall apportion Wideband Message Service revenues
among the jurisdictions using the relative number of minutes of use for the
twelve-month period ending December 31, 2000.
(b) Long Distance private line service revenues from broadcast program
transmission audio services and broadcast program transmission video
services are assigned to the interstate operation.
(c) All other revenues in this account are directly assigned based on their
subsidiary record categories or on the basis of analysis and studies.
[ 52 FR 17229 , May 6, 1987, as amended at 66 FR 33206 , June 21, 2001; 71 FR 65746 , Nov. 9, 2006]
§ 36.215 Miscellaneous revenue—Account 5200.
top
(a) Directory revenues are assigned to the exchange operation.
(b) Billing and collection revenues are assigned on the basis of services
being provided.
(c) All other revenues are apportioned on the basis of analysis.
§ 36.216 Uncollectible revenue—Account 5300.
top
The amounts in this account are apportioned among the operations on the
basis of analysis during a representative period of the portion of Account
1171, Allowance for doubtful accounts, related to telecommunications
billing.
[ 69 FR 12551 , Mar. 17, 2004]
Certain Income Accounts
top
§ 36.221 Other operating income and expenses—Account 7100.
top
(a) Amounts relating to translation in foreign exchange differentials are
assigned to the interstate operations.
(b) All other amounts are apportioned based on Telecommunications Plant in
Service, Account 2001, if plant related, or on the nature of the item
reflected in the account, if not plant related.
§ 36.222 Nonoperating income and expenses—Account 7300.
top
(a) Only allowance for funds used during construction, and charitable,
social and community welfare contributions are considered in this account
for separations purposes.
(b) Subsidiary record categories should be maintained for this account that
include identification of amounts made to the account for (1) credits
representing allowance for funds used during construction and (2)
contributions for charitable, social or community welfare purposes, employee
activities, membership dues and fees in service clubs, community welfare
association and similar organizations.
(c) The portion reflecting allowance for funds used during construction is
apportioned on the basis of the cost of Telecommunications Plant Under
Construction—Account 2003. The portion reflecting costs for social and
community welfare contributions and fees is apportioned on the basis of the
apportionment of corporate operations expenses.
[ 52 FR 17229 , May 6, 1987, as amended at 60 FR 12138 , Mar. 6, 1995]
§ 36.223 Interest and related items—Account 7500.
top
(a) Only interest paid relating to capital leases is considered in this
account for separations purposes. Subsidiary Record Categories should be
maintained for this account that include details relating to interest
expense on capital leases. Such interest expense is apportioned on a basis
consistent with the associated capital leases in Account 2680.
§ 36.224 Extraordinary items—Account 7600.
top
(a) Amounts in this account of an operating nature are apportioned on a
basis consistent with the nature of these items.
§ 36.225 Income effect of jurisdictional ratemaking differences—Account 7910.
top
(a) Amounts in this account are directly assigned to the appropriate
jurisdiction.
Subpart D—Operating Expenses and Taxes
top
General
top
§ 36.301 Section arrangement.
top
(a) This subpart is arranged in sections as follows:
General 36.301 and 36.302.
Plant Specific Operations Expenses:
General 36.310.
Network Support/General Support Expenses—Accounts 6110 and 6120 (Class B
Telephone Companies); Accounts 6112, 6113, 6114, 6121, 6122, 6123, and 6124
(Class A Telephone Companies) 36.311.
Central Office Expenses—Accounts 6210, 6220, 6230 (Class B Telephone
Companies); Accounts 6211, 6212, 6220, 6231, and 6232 (Class A Telephone
Companies) 36.321
Information Origination/Termination Expenses—Account 6310 (Class B Telephone
Companies); Accounts 6311, 6341, 6351, and 6362 (Class A Telephone
Companies) 36.331.
Cable and Wire Facilities Expenses—Account 6410 (Class B Telephone
Companies); Accounts 6411, 6421, 6422, 6423, 6424, 6426, 6431, and 6441
(Class A Telephone Companies) 36.341.
Plant Nonspecific Operations Expenses:
General 36.351.
Other Property Plant and Equipment Expenses—Account 6510 (Class B Telephone
Companies); Accounts 6511 and 6512 (Class A Telephone Companies) 36.352.
Network Operations Expenses—Account 6530 (Class B Telephone Companies);
Accounts 6531, 6532, 6533, 6534, and 6535 (Class A Telephone Companies)
36.353.
Access Expenses—Account 6540 36.354.
Depreciation and Amortization Expenses—Account 6560 36.361.
Customer Operations Expenses:
General 36.371.
Marketing—Account 6610 (Class B Telephone Companies); Accounts 6611 and 6613
(Class A Telephone Companies) 36.372.
Services—Account 6620 36.373.
Telephone Operator Services 36.374.
Published Directory Listing 36.375.
All Other 36.376.
Category 1—Local Bus. Office Expense 36.377.
Category 2—Customer Services (Revenue Accounting) 36.378.
Message Processing Expense 36.379.
Other Billing and Collecting Expense 36.380.
Carrier Access Charge Billing and Collecting Expense 36.381.
Category 3—All other Customer Service Expense 36.382.
Corporate Operations Expenses:
General 36.391.
General and Administrative Expenses—Account 6720 36.392.
Operating Taxes—Account 7200 (Class B Telephone Companies); Accounts 7210,
7220, 7230, 7240, and 7250 (Class A Telephone Companies) 36.411 and 36.412.
Equal Access Expenses 36.421.
[ 69 FR 12551 , Mar. 17, 2004]
§ 36.302 General.
top
(a) This section sets forth procedures for the apportionment among the
operations of operating expenses and operating taxes.
(b) As covered in §36.2 (c) and (d), the treatment of expenses relating to
plant furnished to and obtained from others under rental arrangements is
consistent with the treatment of such plant.
(c) In accordance with requirements in part 32 §32.5999 (f) expenses
recorded in the expense accounts are segregated in the accounting process
among the following subsidiary record categories as appropriate to each
account:
Salaries and Wages
Benefits
Rents
Other Expenses
Clearances
(1) Subsidiary Record Categories (SRC) for Salaries and Wages, Benefits and
Other Expenses are applicable to all of the expense accounts except for:
Access Expense contained in Account 6540
Depreciation and Amortization Expenses—Account 6560
(i) SRC for access expenses are maintained to identify interstate and state
access expense and billing and collection expense for carrier's carrier.
(ii) Depreciation and Amortization Expense SRCs identify the character of
the items contained in the account.
(2) SRCs for Rents and Clearance are only applicable to the Plant Specific
Operating Expense accounts 6110 thru 6410.
Plant Specific Operations Expenses
top
§ 36.310 General.
top
(a) Plant specific operations expenses include the following accounts:
Network Support Expenses Account 6110 (Class B Telephone Companies);
Accounts 6112, 6113, and 6114 (Class A Telephone Companies)
General Support Expenses Account 6120 (Class B Telephone Companies);
Accounts 6121, 6122, 6123, and 6124 (Class A Telephone Companies).
Central Office Switching Expenses Account 6210 (Class B Telephone
Companies); Accounts 6211 and 6212 (Class A Telephone Companies)
Operator System Expenses Account 6220
Central Office Transmission Expenses Account 6230 (Class B Telephone
Companies); Accounts 6231 and 6232 (Class A Telephone Companies).
Information Origination/Termination Expenses Account 6310 (Class B Telephone
Companies); Accounts 6311, 6341, 6351, and 6362 (Class A Telephone
Companies).
Cable and Wire Facilities Expenses Account 6410 (Class B Telephone
Companies); Accounts 6411, 6421, 6422, 6423, 6424, 6426, 6431, and 6441
(Class A Telephone Companies).
(b) These accounts are used to record costs related to specific kinds of
telecommunications plant and predominantly mirror the telecommunications
plant in service detail accounts. Accordingly, these expense accounts will
generally be apportioned in the same manner as the related plant accounts.
(c) Except where property obtained from or furnished to other companies is
treated as owned property by the company making the separation, and the
related operating rents are excluded from the separation studies as set
forth in §36.2 (c) and (d), amounts are apportioned among the operations on
bases generally consistent with the treatment prescribed for similar plant
costs and consistent with the relative magnitude of the items involved.
[ 52 FR 17229 , May 6, 1987, as amended at 53 FR 33012 , Aug. 29, 1988; 69 FR 12551 , Mar. 17, 2004]
Network Support/General Support Expenses
top
§ 36.311 Network Support/General Support Expenses—Accounts 6110 and 6120
(Class B Telephone Companies); Accounts 6112, 6113, 6114, 6121, 6122, 6123, and
6124 (Class A Telephone Companies).
top
(a) Network Support Expenses are expenses associated with motor vehicles,
aircraft, special purpose vehicles, garage work equipment, and other work
equipment. General Support Expenses are expenses associated with land and
buildings, furniture and artworks, office equipment, and general purpose
computers.
(b) The expenses in these account are apportioned among the operations on
the basis of the separation of account 2110, Land and Support Assets.
Central Office Expenses
top
§ 36.321 Central office expenses—Accounts 6210, 6220, and 6230 (Class B
telephone companies); Accounts 6211, 6212, 6220, 6231, and 6232 (Class A
telephone companies).
top
(a) The expenses related to central office equipment are summarized in the
following accounts:
Central Office Switching Expense Account 6210 (Class B telephone companies);
Accounts 6211 and 6212 (Class A telephone companies).
Operator Systems Expense Account 6220.
Central Office Transmission Expense Account 6230 (Class B telephone
companies); Accounts 6231 and 6232 (Class A telephone companies).
(b) The expense in these accounts are apportioned among the operations on
the basis of the separation of the investments in central office equipment.
Accounts 2210, 2220 and 2230, combined.
[ 52 FR 17229 , May 6, 1987, as amended at 69 FR 12552 , Mar. 17, 2004]
Information Origination/Termination Expenses
top
§ 36.331 Information origination/termination expenses—Account 6310 (Class B
telephone companies); Accounts 6311, 6341, 6351, and 6362 (Class A telephone
companies).
top
(a) The expenses in this account are classified as follows:
(1) Other Information Origination/Termination Equipment Expenses; Customer
Premises Equipment Expenses
(2) For some companies, these classifications are available from accounting
records; for others, they are obtained by means of analyses of plant,
accounting or other records for a representative period.
(b) Other Information Origination/Termination Equipment Expenses include all
expenses not associated with Customer Premises Equipment expenses. These
expenses shall be apportioned between state and interstate operations in
accordance with the apportionment of the related investment as per
§36.142(a).
(c) Expenses related to Customer Premises Equipment shall be assigned to the
state operations.
[ 52 FR 17229 , May 6, 1987, as amended at 53 FR 33012 , Aug. 29, 1988]
Cable and Wire Facilities Expenses
top
§ 36.341 Cable and wire facilities expenses—Account 6410 (Class B telephone
companies); Accounts 6411, 6421, 6422, 6423, 6424, 6426, 6431, and 6441 (Class
A telephone companies).
top
(a) This account includes the expenses for poles, antenna supporting
structures, aerial cable, underground cable, buried cable, submarine cable,
deep sea cable, intrabuilding network cable, aerial wire, and conduit
systems.
(b) The general method of separating cable and wire facilities expenses
amoung the operations is to assign them on the basis of Account 2410—Cable
and Wire Facilities.
Plant Nonspecific Operations Expenses
top
§ 36.351 General.
top
(a) Plant nonspecific operations expenses include the following accounts:
Other Property Plant and Equipment Expenses Account 6510 (Class B telephone
companies); Accounts 6511 and 6512 (Class A telephone companies).
Network Operations Expenses Account 6530 (Class B telephone companies);
Accounts 6531, 6532, 6533, 6534, and 6535 (Class A telephone companies).
Access Expenses Account 6540.
Depreciation and Amortization Expenses Account 6560.
[ 69 FR 12552 , Mar. 17, 2004]
Plant Expenses—Other
top
§ 36.352 Other property plant and equipment expenses—Account 6510 (Class B
telephone companies); Accounts 6511 and 6512 (Class A telephone companies).
top
(a) This account is used to record the expenses associated with (1) property
held for future telecommunications use and (2) the provisioning of material
and supplies.
(b) The expenses in this account are apportioned among the operations based
on the separation of Account 2001—Telecommunications Plant in Service.
Network Operations Expenses
top
§ 36.353 Network operations expenses—Account 6530 (Class B telephone
companies); Accounts 6531, 6532, 6533, 6534, and 6535 (Class A telephone
companies).
top
(a) This account includes the expenses associated with the provisions of
power, network administration, testing, plant operations administration, and
engineering.
(b) The expenses in this account are apportioned among the operations based
on the separations of Account 2210, Central Office Switching, Account 2220
Operator Systems, Account 2230 Central Office Transmission, Account 2310,
Information Origination/Termination and Account 2410, Cable and Wire
Facilities, Combined.
§ 36.354 Access expenses—Account 6540.
top
(a) This account includes access charges paid to exchange carriers for
exchange access service. These are directly assigned to the appropriate
jurisdiction based on subsidiary record categories or on analysis and study.
Depreciation and Amortization Expenses
top
§ 36.361 Depreciation and amortization expenses—Account 6560.
top
(a) This account includes the depreciation expenses for telecommunications
plant in service and for property held for future telecommunications use. It
also includes the amortization expense for tangible and intangible asserts.
(b) Expenses recorded in this account shall be separated on the basis of the
separation of the associated primary Plant Accounts or related categories.
Customer Operations Expenses
top
§ 36.371 General.
top
Customer Operations Expenses are included in the following accounts:
Marketing Account 6610 (Class B telephone companies); Accounts 6611 and 6613
(Class A telephone companies).
Services Account 6620.
[ 69 FR 12552 , Mar. 17, 2004]
§ 36.372 Marketing—Account 6610 (Class B telephone companies); Accounts 6611
and 6613 (Class A telephone companies).
top
The expenses in this account are apportioned among the operations on the
basis of an analysis of current billing for a representative period,
excluding current billing on behalf of others and billing in connection with
intercompany setttlements. Effective July 1, 2001 through June 30, 2006, all
study areas shall apportion expenses in this account among the jurisdictions
using the analysis, as specified in §36.372(a), during the twelve-month
period ending December 31, 2000.
[ 52 FR 32923 , Sept. 1, 1987, as amended at 66 FR 33207 , June 21, 2001]
§ 36.373 Services—Account 6620.
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(a) For apportionment purposes, the expenses in this account are first
segregated on the basis of an analysis of job functions into the following
classifications: Telephone operator services: publishing directory listing;
and all other.
(1) Expenses may be apportioned among the operations for groups of
exchanges. A group of exchanges may include all exchanges in the study area.
§ 36.374 Telephone operator services.
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(a) Expenses in this classification include costs incurred for operators in
call completion service and number services. This includes intercept,
quoting rates, directory information, time charges, and all other operator
functions performed in the central office, private branch exchange,
teletypewriter exchange, and at public telephone stations.
(b) Effective July 1, 2001, through June 30, 2006, study areas subject to
price cap regulation, pursuant to §61.41 of this chapter, shall assign the
balance of Account 6620–Services to the Telephone operator expense
classification based on the relative percentage assignment of the balance of
Account 6620 to this classification during the twelve month period ending
December 31, 2000.
(c) Expenses in this classification are apportioned among the operations on
the basis of the relative number of weighted standard work seconds as
determined by analysis and study for a representative period.
(d) Effective July 1, 2001, through June 30, 2006, all study areas shall
apportion Telephone operator expenses among the jurisdictions using the
relative number of weighted standard work seconds, as specified in
§36.374(c), during the twelve-month period ending December 31, 2000.
[ 52 FR 17229 , May 6, 1987, as amended at 66 FR 33207 , June 21, 2001]
§ 36.375 Published directory listing.
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(a) This classification includes expenses for preparing or purchasing,
compiling and disseminating directory listings.
(b) Published directory expense is assigned as follows:
(1) Classified directory expense and all expense of soliciting advertising
is assigned to the exchange operation.
(2) The expense of alphabetical and street address directories and traffic
information records is apportioned among the operations on the basis of the
relative number of study area subscriber line minutes-of-use applicable to
each operation.
(3) The expense associated with directories and traffic information records
prepared for one locality and used in another locality is known as “foreign
directories expense.” Such expense is assigned to the appropriate operation
on the basis of the location of the point where used with respect to the
locality for which the directories and records were prepared.
(4) Effective July 1, 2001, through June 30, 2006, study areas subject to
price cap regulation, pursuant to §61.41, shall assign the balance of
Account 6620-Services to the classifications, as specified in §§36.375(b)(1)
through 36.375(b)(4), based on the relative percentage assignment of the
balance of Account 6620 to these classifications during the twelve month
period ending December 31, 2000.
(5) Effective July 1, 2001 through June 30, 2006, all study areas shall
apportion Published directory listing expenses using the underlying relative
use measurements, as specified in §§36.375(b)(1) through 36.375(b)(4),
during the twelve-month period ending December 31, 2000. Direct assignment
of any Publishing directory listing expense to the jurisdictions shall be
updated annually.
[ 52 FR 17229 , May 6, 1987, as amended at 66 FR 33207 , June 21, 2001; 71 FR 65746 , Nov. 9, 2006]
§ 36.376 All other.
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(a) For apportionment purposes this classification must be divided into
three categories:
(1) Category 1—Local Business Office Expense.
(2) Category 2—Customer Services Expense.
(3) Category 3—All Other Customer Services Expense.
§ 36.377 Category 1—Local business office expense.
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(a) The expense in this category for the area under study is first
segregated on the basis of an analysis of job functions into the following
subcategories: End user service order processing; end user payment and
collection; end user billing inquiry; interexchange carrier service order
processing; interexchange carrier payment and collection; interexchange
carrier billing inquiry; and coin collection and administration. Effective
July 1, 2001, through June 30, 2006, study areas subject to price cap
regulation, pursuant to §61.41 of this chapter, shall assign the balance of
Account 6620–Services to the subcategories, as specified in §36.377(a),
based on the relative percentage assignment of the balance of Account 6620
to these categories/subcategories during the twelve month period ending
December 31, 2000.
(1) End-user service order processing includes expenses related to the
receipt and processing of end users' orders for service and inquiries
concerning service. This subcategory does not include any service order
processing expenses for services provided to the interexchange carriers. End
user service order processing expenses are first segregated into the
following subcategories based on the relative number of actual contacts
which are weighted, if appropriate, to reflect differences in the average
work time per contact: Local service order processing; presubscription;
directory advertising; State private line and special access; interstate
private line and special access; other State message toll including WATS;
other interstate message toll including WATS.
(i) Local service order processing expense (primarily local telephone
service orders) is assigned to the State jurisdiction.
(ii) Presubscription service order processing expense is assigned to the
interstate jurisdiction.
(iii) Directory advertising service order processing expense is assigned to
the State jurisdiction.
(iv) State private line and special access service order processing expense
is assigned to the State jurisdiction.
(v) Interstate private line and special access service order processing
expense is assigned to the interstate jurisdiction.
(vi) Other State message toll including WATS service order processing
expense is assigned to the State jurisdiction.
(vii) Other Interstate message toll including WATS service order processing
expense is assigned to the interstate jurisdiction.
(viii) [Reserved]
(ix) Effective July 1, 2001, through June 30, 2006, study areas subject to
price cap regulation, pursuant to §61.41 of this chapter, shall assign the
balance of Account 6620-Services to the categories/subcategories, as
specified in §§36.377(a)(1)(i) through 36.77(a)(1)(viii), based on the
relative percentage assignment of the balance of Account 6620 to these
categories/subcategories during the twelve month period ending December 31,
2000. Effective July 1, 2001 through June 30, 2006, all study areas shall
apportion TWX service order processing expense, as specified in
§36.377(a)(1)(viii) among the jurisdictions using relative billed TWX
revenues for the twelve-month period ending December 31, 2000. All other
subcategories of End-user service order processing expense, as specified in
§§36.377(a)(1)(i) through 36.377(a)(1)(viii), shall be directly assigned.
(2) End user payment and collection includes expenses incurred in relation
to the payment and collection of amounts billed to end users. It also
includes commissions paid to payment agencies (which receive payment on
customer accounts) and collection agencies. This category does not include
any payment or collection expenses for services provided to interexchange
carriers. End user payment and collection expenses are first segregated into
the following subcategories based on relative total state and interstate
billed revenues (excluding revenues billed to interexchange carriers and/or
revenues deposited in coin boxes) for services for which end user payment
and collection is provided: State private line and special access;
interstate private line and special access; State message toll including
WATS; interstate message toll including WATS, and interstate subscriber line
charge; local, including directory advertising.
(i) State private line and special access payment and collection expense is
assigned to the State jurisdiction.
(ii) Interstate private line and special access payment and collection
expense is assigned to the interstate jurisdiction.
(iii) State message toll including WATS payment and collection expense is
assigned to the State jurisdiction.
(iv) Interstate message toll including WATS and interstate subscriber line
charge payment and collection expense is assigned to the interstate
jurisdiction.
(v) Local, including directory advertising payment and collection expense is
assigned to the State jurisdiction.
(vi) [Reserved]
(vii) Effective July 1, 2001, through June 30, 2006, study areas subject to
price cap regulation, pursuant to §61.41 of this chapter, shall assign the
balance of Account 6620—Services to the subcategories, as specified in
§§36.377(a)(2)(i) through 36.377(a)(2)(vi), based on the relative percentage
assignment of the balance of Account 6620 to these categories/subcategories
during the twelve month period ending December 31, 2000. All other
subcategories of End User payment and collection expense, as specified in
§§36.377(a)(2)(i) through 36.377(a)(2)(v), shall be directly assigned.
(3) End user billing inquiry includes expenses related to handling end
users' inquiries concerning their bills. This category does not include
expenses related to the inquiries of interexchange carriers concerning their
bills. End user billing inquiry costs are first segregated into the
following subcategories based on the relative number of actual contracts,
weighted if appropriate, to reflect differences in the average work time per
contact: State private line and special access; interstate private line and
special access; State message toll including WATS, interstate message toll
including WATS, interstate subscriber line charge; and other.
(i) State private line and special access billing inquiry expense is
directly assigned to the State jurisdiction.
(ii) Interstate private line and special access billing inquiry expense is
directly assigned to the interstate jurisdiction.
(iii) State message toll including WATS billing inquiry expense is directly
assigned to the State jurisdiction.
(iv) Interstate message toll including WATS, and interstate subscriber line
charge billing inquiry expense is directly assigned to the interstate
jurisdiction.
(v) [Reserved]
(vi) Other billing inquiry expense (primarily related to local bills but
also including directory advertising) is directly assigned to the State
jurisdiction.
(vii) Effective July 1, 2001 through June 30, 2006 study areas subject to
price cap regulation, pursuant to §61.41 of this chapter, shall assign the
balance of Account 6620—Services to the subcategories, as specified in
§§36.377(a)(3)(i) through 36.377(a)(3)(vi), based on the relative percentage
assignment of the balance of Account 6620 to these subcategories during the
twelve month period ending December 31, 2000. All other subcategories of End
user billing inquiry expense, as specified in §§36.377(a)(3)(i) through
36.377(a)(3)(vi), shall be directly assigned.
(4) Interexchange carrier service order processing includes expenses
associated with the receipt and processing of interexchange carrier orders
for service and inquiries about service. Interexchange carrier service order
processing expenses are assigned to the following subcategories based on the
relative number of actual contacts which are weighted, if appropriate, to
reflect differences in the average work time per contact: State special
access and private line; interstate special access and private line; State
switched access and message toll including WATS; interstate switched access
and message toll including WATS; State billing and collection; and
interstate billing and collection.
(i) State special access and private line service order processing expense
is directly assigned to the State jurisdiction.
(ii) Interstate special access and private line service order processing
expense is directly assigned to the interstate jurisdiction.
(iii) State switched access and message toll including WATS service order
processing expense is directly assigned to the State jurisdiction.
(iv) Interstate switched access and message toll including WATS service
order processing expense is directly assigned to the interstate
jurisdiction.
(v) State billing and collection service order processing expense is
directly assigned to the state jurisdiction.
(vi) Interstate billing and collection service order processing expense is
directly assigned to the interstate jurisdiction.
(vii) Effective July 1, 2001 through June 30, 2006, study areas subject to
price cap regulation, pursuant to §61.41 of this chapter, shall assign the
balance of Account 6620–Services to the subcategories, as specified in
§§36.377(a)(4)(i) through 36.377(a)(4)(vi), based on the relative percentage
assignment of the balance of Account 6620 to these subcategories during the
twelve month period ending December 31, 2000. All subcategories of
Interexchange carrier service order processing expense, as specified in
§§36.377(a)(4)(i) through 36.377(a)(4)(vi), shall be directly assigned.
(5) Interexchange carrier payment and collection includes expenses
associated with the payment and collection of interexchange carrier
billings, including commissions paid to payment and collection agents.
Interexchange carrier payment and collection expenses are assigned to the
following subcategories based on relative total State and interstate
revenues billed to the interexchange carriers: State special access and
private line; interstate special access and private line; State switched
access and message toll including WATS; interstate switched access and
message toll including WATS; State billing and collection; and interstate
billing and collection.
(i) State special access and private line payment and collection expense is
directly assigned to the State jurisdiction.
(ii) Interstate special access and private line payment and collection
expense is directly assigned to the interstate jurisdiction.
(iii) State switched access and message toll including WATS payment and
collection expense is directly assigned to the State jurisdiction.
(iv) Interstate switched access and message toll including WATS payment and
collection expense is directly assigned to the interstate jurisdiction.
(v) State billing and collection payment and collection expense is directly
assigned to the State jurisdiction.
(vi) Interstate billing and collection payment and collection expense is
directly assigned to the interstate jurisdiction.
(vii) Effective July 1, 2001 through June 30, 2006, study areas subject to
price cap regulation, pursuant to §61.41 of this chapter, shall assign the
balance of Account 6620–Services to the subcategories, as specified in
§§36.377(a)(5)(i) through 36.377(a)(5)(vi), based on the relative percentage
assignment of the balance of Account 6620 to these subcategories during the
twelve month period ending December 31, 2000. All subcategories of
Interexchange carrier payment expense, as specified in §§36.377(a)(5)(i)
through 36.377(a)(5)(vi), shall be directly assigned.
(6) Interexchange carrier billing inquiry includes expenses related to the
handling of interexchange carrier billing inquiries. Interexchange carrier
billing inquiry expenses are assigned to the following subcategories based
on the relative number of actual contacts, weighted if appropriate, to
reflect differences in the average work time per contact: State special
access and private line; interstate special access and private line; State
switched access and message toll including WATS; interstate switched access
and message toll including WATS; State billing and collection; and
interstate billing and collection.
(i) State special access and private line billing inquiry expenses is
directly assigned to the State jurisdiction.
(ii) Interstate special access and private line billing inquiry expense is
directly assigned to the interstate jurisdiction.
(iii) State switched access and message toll including WATS billing inquiry
expense is directly assigned to the State jurisdiction.
(iv) Interstate switched access and message toll including WATS billing
inquiry expense is directly assigned to the interstate jurisdiction.
(v) State billing and collection billing inquiry expense is directly
assigned to the State jurisdiction.
(vi) Interstate Billing and Collection billing inquiry expense is directly
assigned to the interstate jurisdiction.
(vii) Effective July 1, 2001 through June 30, 2006, study areas subject to
price cap regulation, pursuant to §61.41 of this chapter, shall assign the
balance of Account 6620–Services to the subcategories, as specified in
§36.377(a)(6)(i) through 36.377(a)(6)(vi), based on the relative percentage
assignment of the balance of Account 6620 to these subcategories during the
twelve month period ending December 31, 2000. All subcategories of
Interchange carrier billing inquiry expense, as specified in
§§36.377(a)(6)(i) through 36.377(a)(6)(vi), shall be directly assigned.
(7) [Reserved]
[ 52 FR 17229 , May 6, 1987, as amended at 66 FR 33207 , June 21, 2001; 71 FR 65746 , Nov. 9, 2006]
§ 36.378 Category 2—Customer services (revenue accounting).
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(a) The Revenue Accounting proportion of Account 6620 expenses comprise the
salaries and other expenses in Account 6620 directly assignable or allocable
to the billing of customers and the accounting for revenues, including the
supervision of such work.
(b) Revenue Accounting expenses for the study area are separated on the
basis of a Job Function analysis into three main classifications: Message
processing expense, other billing and collecting expense, and carrier access
charge billing and collecting expense.
(1) Effective July 1, 2001 through June 30, 2006, study areas subject to
price cap regulation, pursuant to §61.41 of this chapter, shall assign the
balance of Account 6620–Services to the classifications, as specified in
§36.378(b), based on the relative percentage assignment of the balance of
Account 6620 to those classifications during the twelve month period ending
December 31, 2000.
(2) [Reserved]
(c) The term “ticket” denotes either a ticket prepared manually by an
operator or the mechanized equivalent of such a ticket processed by the
revenue accounting office.
[ 52 FR 17229 , May 6, 1987, as amended at 66 FR 33208 , June 21, 2001]
§ 36.379 Message processing expense.
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(a) This classification includes the salary and machine expense of data
processing equipment, including supervision, general accounting
administrative and miscellaneous expense associated with the processing of
individual toll tickets and local message tickets.
(b) The expense assigned to this classification is divided into the
subcategories Toll Ticket Processing Expense and Local Message Processing
Expense on the basis of the relative number of messages. Toll Ticket
Processing Expense is allocated between the State and interstate
jurisdiction on the basis of the relative number of toll messages. Local
Message Processing Expense is assigned to the exchange operation.
(1) Effective July 1, 2001 through June 30, 2006, study areas subject to
price cap regulation, pursuant to §61.41 of this chapter, shall assign the
balance of Account 6620–Services to the subcategories, as specified in
§36.379(b), based on the relative percentage assignment of the balance of
Account 6620 to those subcategories during the twelve month period ending
December 31, 2000.
(2) Effective July 1, 2001 through June 30, 2006, all study areas shall
apportion Toll Ticketing Processing Expense among the jurisdictions using
the relative number of toll messages for the twelve-month period ending
December 31, 2000. Local Message Process Expense is assigned to the state
jurisdiction.
[ 52 FR 17229 , May 6, 1987, as amended at 66 FR 33208 , June 21, 2001]
§ 36.380 Other billing and collecting expense.
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(a) This classification includes the salary expense, including supervision,
general accounting administrative, and miscellaneous expense, associated
with the preparation of customer bills other than carrier access charge
bills and with other revenue accounting functions not covered in §36.379.
Included in this classification are the expenses incurred in the preparation
of monthly bills, initial and final bills, the application of service orders
to billing records (establishing, changing, or discontinuing customers'
accounts), station statistical work, controlling record work and the
preparation of revenue reports.
(b) Local exchange carriers that bill or collect from end users on behalf of
interexchange carriers shall allocate one third of the expenses assigned
this classification to the interstate jurisdiction, and two thirds of the
expenses assigned this classification to the state jurisdiction.
(c) Local exchange carriers that do not bill or collect from end users on
behalf of interexchange carriers shall allocate five percent of the expenses
assigned this classification to the interstate jurisdiction, and ninety-five
percent of the expenses assigned this classification to the state
jurisdiction.
(d) Effective July 1, 2001 through June 30, 2006, study areas subject to
price cap regulation, pursuant to §61.41 of this chapter, shall assign the
balance of Account 6620–Services to the Other billing and collecting expense
classification based on the relative percentage assignment of the balance of
Account 6620 to those subcategory during the twelve month period ending
December 31, 2000.
(e) Effective July 1, 2001 through June 30, 2006, all study areas shall
apportion Other billing and collecting expense among the jurisdictions using
the allocation factor utilized, pursuant to §§36.380(b) or 36.380(c), for
the twelve month period ending December 31, 2000.
[ 53 FR 33011 , Aug. 29, 1988, as amended at 62 FR 15416 , Apr. 1, 1997; 66 FR 33208 , June 21, 2001]
§ 36.381 Carrier access charge billing and collecting expense.
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(a) This classification includes the revenue accounting functions associated
with the billing and collecting of access charges to interexchange carriers.
(b) Of access charges other than end user common line access charges are
assessed for the origination or termination of intrastate services in a
particular state, one-half of such expense shall be apportioned to
interstate operations. If no such access charges are assessed in a
particular state, all such expense shall be assigned to interstate
operations.
(c) Effective July 1, 2001, through June 30, 2006, study areas subject to
price cap regulation, pursuant to §61.41 of this chapter, shall assign the
balance of Account 6620–Services to the Carrier access charge billing and
collecting expense classification based on the relative percentage
assignment of the balance of Account 6620 to that classification during the
twelve month period ending December 31, 2000.
(d) Effective July 1, 2001, through June 30, 2006, all study areas shall
apportion Carrier access charge billing and collecting expense among the
jurisdictions using the allocation factor, pursuant to §36.381(b), for the
twelve-month period ending December 31, 2000.
[ 52 FR 17229 , May 6, 1987, as amended at 66 FR 33208 , June 21, 2001]
§ 36.382 Category 3—All other customer services expense.
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(a) Effective July 1, 2001, through June 30, 2006, study areas subject to
price cap regulation, pursuant to §61.41 of this chapter, shall assign the
balance of Account 6620–Services to this category based on the relative
percentage assignment of the balance of Account 6620 to this category during
the twelve month period ending December 31, 2000.
(b) Category 3 is apportioned on the basis of Categories 1 and 2.
[ 66 FR 33208 , June 21, 2001]
Corporate Operations Expense
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§ 36.391 General.
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Corporate Operations Expenses are included in the following account:
General and Administrative Account 6720.
[ 69 FR 12552 , Mar. 17, 2004]
§ 36.392 General and administrative—Account 6720.
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(a) These expenses are divided into two categories:
(1) Extended Area Services (EAS).
(2) All other.
(b) Extended Area Services (EAS) settlements are directly assigned to the
exchange operation.
(c) The expenses in this account are apportioned among the operations on the
basis of the separation of the cost of the combined Big Three Expenses which
include the following accounts:
Plant Specific Expenses
Central Office Switching Expenses—Account 6210 (Class B Telephone
Companies); Accounts 6211 and 6212 (Class A Telephone Companies)
Operators Systems Expenses—Account 6220
Central Office Transmission Expenses—Account 6230 (Class B Telephone
Companies); Accounts 6231 and 6232 (Class A Telephone Companies)
Information Origination/Termination Expenses—Account 6310 (Class B Telephone
Companies); Accounts 6311, 6341, 6351, and 6362 (Class A Telephone
Companies)
Cable and Wire Facilities Expense—Account 6410 (Class B Telephone
Companies); Accounts 6411, 6421, 6422, 6423, 6424, 6426, 6431, and 6441
(Class A Telephone Companies)
Plant Non-Specific Expenses
Network Operations Expenses—Account 6530 (Class B Telephone Companies);
Accounts 6531, 6532, 6533, 6534, and 6535 (Class A Telephone Companies)
Customer Operations Expenses
Marketing—Account 6610 (Class B Telephone Companies); Accounts 6611 and 6613
(Class A Telephone Companies)
Services—Account 6620
[ 52 FR 17229 , May 6, 1987, as amended at 69 FR 12552 , Mar. 17, 2004]
Operating Taxes
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§ 36.411 Operating taxes—Account 7200 (Class B Telephone Companies); Accounts
7210, 7220, 7230, 7240, and 7250 (Class A Telephone Companies).
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(a) This account includes the taxes arising from the operations of the
company, i.e.,
Operating Investment Tax Credits
Operating Federal Income Taxes
Operating State and Local Income Taxes
Operating Other Taxes
Provision for Deferred Operating Income Taxes
§ 36.412 Apportionment procedures.
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(a) For apportionment purposes, the expenses in this account are segregated
into two groups as follows: (1) Operating Federal, State and local income
taxes and (2) all other operating taxes.
(b) Operating Federal, State and local income taxes are apportioned among
the operations on the basis of the approximate net taxable income (positive
or negative) applicable to each of the operations. The approximate net
taxable income from each of the operations is the summation of the following
amounts apportioned to each operation by means of the procedures set forth
in this Manual:
(1) Operating revenues,
(2) Less operating expenses,
(3) Less operating taxes except the net income tax being apportioned and
except any other tax not treated as a deductible item in the determination
of taxable net income for this purpose.
(4) Less operating fixed charges.
(i) The amount of fixed charges attributable to the operations is obtained
by subtracting the tax component (positive or negative) attributable to
other than the operating fixed charges, i.e., fixed charges on non-operating
investments are that proportion of total fixed charges which non-operating
net investments are of total operating and non-operating net investments.
(ii) Operating fixed charges including interest on Rural Telephone Bank
Stock are apportioned among the operations on the basis of the separation of
the cost of telephone plant less appropriate reserves.
(c) Other operating taxes should be directly assigned to the appropriate
jurisdiction where possible, e.g., Local Gross Receipts may be directly
identified as applicable to one jurisdiction. Where direct assignment is not
feasible, these expenses should be apportioned among the operations on the
basis of the separation of the cost of Telecommunications Plant in
Service—Account 2001.
Equal Access Expenses
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§ 36.421 Equal access expenses.
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(a) Equal access expenses include only initial incremental pre-subscription
costs and other initial incremental expenditures related directly to the
provision of equal access, that would not be required to upgrade the
capabilities of the office involved absent the provision of equal access.
Equal access expenses are limited to such expenditures for converting
central offices that serve competitive interexchange carriers or where there
has been a bona fide request for conversion to equal access.
(b) Equal access expenses are apportioned between the jurisdictions by first
segregating them from all other expenses in the primary accounts and then
allocating them on the same basis as equal access investment.
Subpart E—Reserves and Deferrals
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§ 36.501 General.
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For separations purposes, reserves and deferrals include the following
accounts:
Other Jurisdictional Assets—Net Account 1500.
Accumulated Depreciation Account 3100.
Accumulated Depreciation—Property Held for Future Telecommunications Use
Account 3200.
Accumulated Amortization—Capital Leases Account 3400 (Class B Telephone
Companies); Account 3410 (Class A Telephone Companies).
Net Current Deferred Operating Income Taxes Account 4100.
Net Noncurrent Deferred Operating Income Taxes Account 4340.
Other Jurisdictional Liabilities and Deferred Credits—Net Account 4370.
[ 69 FR 12553 , Mar. 17, 2004]
§ 36.502 Other jurisdictional assets—Net—Account 1500.
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(a) Amounts in this account are separated based upon analysis of the
specific items involved.
§ 36.503 Accumulated depreciation—Account 3100.
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(a) Amounts recorded in this account shall be separated on the basis of the
separation of the associated primary Plant Accounts or related categories,
excluding amortizable assets.
§ 36.504 Accumulated depreciation—Property held for future telecommunications
use—Account 3200.
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(a) Amounts in this account are apportioned among the operations on the
basis of the separation of the costs of the related items carried in Account
2002—Property Held for Future Telecommunications Use.
§ 36.505 Accumulated amortization—Tangible—Account 3400 (Class B Telephone
Companies); Accumulated amortization—Capital Leases—Account 3410 (Class A
Telephone Companies).
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(a) Amounts in these accounts are apportioned among the operations on the
basis of the separation of the related accounts.
§ 36.506 Net current deferred operating income taxes—Account 4100, Net
noncurrent deferred operating income taxes—Account 4340.
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(a) Amounts in these accounts are maintained by plant account and are
apportioned among the operations on the basis of the separations of the
related plant accounts.
§ 36.507 Other jurisdictional liabilities and deferred credits—Net—Account
4370.
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(a) Amounts in this account are separated based upon an analysis of the
specific items involved.
Subpart F—Universal Service Fund
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General
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§ 36.601 General.
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(a) The term Universal Service Fund in this subpart refers only to the
support for loop-related costs included in §36.621. The term Universal
Service in part 54 of this chapter refers to the comprehensive discussion of
the Commission's rules implementing section 254 of the Communications Act of
1934, as amended, 47 U.S.C. 254, which addresses universal service support
for rural, insular, and high cost areas, low-income consumers, schools and
libraries, and heath care providers. The expense adjustment calculated
pursuant to this subpart F shall be added to interstate expenses and
deducted from state expenses after expenses and taxes have been apportioned
pursuant to subpart D of this part. Beginning January 1, 1998, the expense
adjustment calculated pursuant to this subpart will be administered and
funded through the new universal service system discussed in part 54 of this
chapter.
(b) The expense adjustment will be computed on the basis of data for a
preceding calendar year which may be updated at the option of the carrier
pursuant to §36.612(a).
(c) Until June 30, 2001, the annual amount of the total nationwide expense
adjustment shall consist of the amounts calculated pursuant to §54.309 of
this chapter and the amounts calculated pursuant to this subpart F. The
annual amount of the total nationwide loop cost expense adjustment
calculated pursuant to this subpart F shall not exceed the amount of the
total loop cost expense adjustment for the immediately preceding calendar
year, increased by a rate equal to the rate of increase in the total number
of working loops during the calendar year preceding the July 31st filing.
The total loop cost expense adjustment shall consist of the loop cost
expense adjustments, including amounts calculated pursuant to §36.612(a) and
§36.631. The rate of increase in total working loops shall be based upon the
difference between the number of total working loops on December 31 of the
calendar year preceding the July 31st filing and the number of total working
loops on December 31 of the second calendar year preceding that filing, both
determined by the company's submissions pursuant to §36.611. Beginning
January 1, 2000, non-rural incumbent local exchange carriers and, eligible
telecommunications carriers serving lines in the service area of non-rural
incumbent local exchange carriers, shall only receive support pursuant to
this subpart F to the extent that they qualify pursuant to §54.311 of this
chapter for interim hold-harmless support. Support amounts calculated
pursuant to this subpart F but not received due to the phase down of interim
hold-harmless support or the receipt of forward-looking support pursuant to
§54.311 of this chapter shall not be redistributed to other carriers.
[ 52 FR 17229 , May 6, 1987, as amended at 56 FR 27422 , June 14, 1991; 58 FR 69242 , Dec. 30, 1993; 61 FR 34376 , July 2, 1996; 62 FR 32947 , June 17, 1997;
62 FR 40748 , July 30, 1997; 63 FR 2124 , Jan. 13, 1998; 64 FR 30924 , June 9,
1999; 64 FR 67430 , Dec. 1, 1999; 65 FR 78992 , Dec. 18, 2000; 66 FR 30085 ,
June 5, 2001]
§ 36.602 Calculation of non-rural carrier portion of nationwide loop cost
expense adjustment.
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Effective July 1, 2001, for purposes of determining non-rural carrier
interim hold-harmless support, pursuant to §54.311 of this chapter, the
annual amount of the total nationwide loop cost expense adjustment
calculated pursuant to this subpart F shall not exceed the amount of the
total loop cost expense adjustment for the immediately preceding calendar
year, increased by a rate equal to the rate of increase in the total number
of working loops during the calendar year preceding the July 31st filing.
The total loop cost expense adjustment shall consist of the loop cost
expense adjustments, including amounts calculated pursuant to §§36.612(a)
and 36.631. The rate of increase in total working loops shall be based upon
the difference between the number of total working loops on December 31 of
the calendar year preceding the July 31st filing and the number of total
working loops on December 31 of the second calendar year preceding that
filing, both determined by the company's submissions pursuant to §36.611.
Non-rural incumbent local exchange carriers and eligible telecommunications
carriers serving lines in the service area of non-rural incumbent local
exchange carriers shall only receive support pursuant to this subpart F to
the extent that they qualify pursuant to §54.311 of this chapter for interim
hold-harmless support. Support amounts calculated pursuant to this subpart F
but not received due to the phase down of interim hold-harmless support or
the receipt of forward-looking support pursuant to §54.311 of this chapter
shall not be redistributed to other carriers.
[ 66 FR 30085 , June 5, 2001]
§ 36.603 Calculation of rural incumbent local exchange carrier portion of
nationwide loop cost expense adjustment.
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(a) Effective July 1, 2001, the rural incumbent local exchange carrier
portion of the annual nationwide loop cost expense adjustment will be
recomputed by the fund administrator as if the indexed cap calculated
pursuant to §36.601(c) and the corporate operations expense limitation
calculated pursuant to §36.621 had not been in effect for the calendar year
2000. For the period July 1, 2001, to December 31, 2001, the annualized
amount of the rural incumbent local exchange carrier portion of the
nationwide loop cost expense adjustment calculated pursuant to this subpart
F shall not exceed the non-capped amount of the total rural incumbent local
exchange carrier loop cost expense adjustment for the calendar year 2000,
multiplied times one plus the Rural Growth Factor calculated pursuant to
§36.604. For the period January 1, 2002, to December 31, 2002, the annual
amount of the rural incumbent local exchange carrier portion of the
nationwide loop cost expense adjustment calculated pursuant to this subpart
F shall not exceed the non-capped amount of the total rural incumbent local
exchange carrier loop cost expense adjustment for calendar year 2000,
multiplied times one plus the Rural Growth Factor for 2001, which then shall
be multiplied times one plus the Rural Growth Factor for 2002. Beginning
January 1, 2003, the annual amount of the rural incumbent local exchange
carrier portion of the nationwide loop cost expense adjustment calculated
pursuant to this subpart F shall not exceed the amount of the total rural
incumbent local exchange carrier loop cost expense adjustment for the
immediately preceding calendar year, multiplied times one plus the Rural
Growth Factor calculated pursuant to §36.604.
(b) The annual rural incumbent local exchange carrier portion of the
nationwide loop cost expense adjustment shall be reduced to reflect the
transfer of rural incumbent local exchange carrier access lines that are
eligible for expense adjustments pursuant to §36.631. The reduction shall
equal the amount of the §36.631 expense adjustment available to the
transferred access lines at the time of the transfer and shall be effective
in the next calendar quarter after the access lines are transferred.
(c) Safety net additive support calculated pursuant to §36.605, and
transferred high-cost support and safety valve support calculated pursuant
to §54.305 of this chapter shall not be included in the rural incumbent
local exchange carrier portion of the annual nationwide loop cost expense
adjustment.
[ 66 FR 30085 , June 5, 2001, as amended at 67 FR 44083 , July 1, 2002]
§ 36.604 Calculation of the rural growth factor.
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The Rural Growth Factor (RGF) is equal to the sum of the annual percentage
change in the United States Department of Commerce's Gross Domestic
Product—Chained Price Index (GPD-CPI) plus the percentage change in the
total number of rural incumbent local exchange carrier working loops during
the calendar year preceding the July 31st filing submitted pursuant to
§36.611. The percentage change in total rural incumbent local exchange
carrier working loops shall be based upon the difference between the total
number of rural incumbent local exchange carrier working loops on December
31 of the calendar year preceding the July 31st filing and the total number
of rural incumbent local exchange carrier working loops on December 31 of
the second calendar year preceding that filing, both determined by the
company's submissions pursuant to §36.611. Loops acquired by rural incumbent
local exchange carriers shall not be included in the RGF calculation.
[ 66 FR 30085 , June 5, 2001]
§ 36.605 Calculation of safety net additive.
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(a) “Safety net additive support.” A rural incumbent local exchange carrier
shall receive safety net additive support if it satisfies the conditions set
forth in paragraph (c) of this section. Safety net additive support is
support available to rural telephone companies, as conditioned in paragraph
(c) of this section, in addition to support calculated pursuant to §36.631.
Safety net additive support shall not be available to rural telephone
companies for exchange(s) that are subject to §54.305 of this chapter.
(b) Calculation of safety net additive support: Safety net additive support
is equal to the amount of capped support calculated pursuant to this subpart
F in the qualifying year minus the amount of support in the year prior to
qualifying for support subtracted from the difference between the uncapped
expense adjustment for the study area in the qualifying year minus the
uncapped expense adjustment in the year prior to qualifying for support as
shown in the following equation: Safety net additive support = (Uncapped
support in the qualifying year−Uncapped support in the base year)−(Capped
support in the qualifying year−Amount of support received in the base year).
(c) Operation of safety net additive support: (1) In any year in which the
total carrier loop cost expense adjustment is limited by the provisions of
§36.603 a rural incumbent local exchange carrier shall receive safety net
additive support as calculated in paragraph (b) of this section, if in any
study area, the rural incumbent local exchange carrier realizes growth in
end of period Telecommunications Plant in Service (TPIS), as prescribed in
§32.2001 of this chapter, on a per loop basis, of at least 14 percent more
than the study area's TPIS per loop investment at the end of the prior
period.
(2) If paragraph (c)(1) of this section is met, the rural incumbent local
exchange carrier must notify the Administrator; failure to properly notify
the Administrator of eligibility shall result in disqualification of that
study area for safety net additive, requiring the rural incumbent local
exchange carrier to again meet the eligibility requirements in paragraph
(c)(1) of this section for that study area in a subsequent period.
(3) Upon completion of verification by the Administrator that the study area
meets the stated criterion in paragraphs (a), (b), (c) of this section, the
Administrator shall:
(i) Pay to any qualifying rural telephone company, safety net additive
support for the qualifying study area in accordance with the calculation set
forth in paragraph (b) of this section; and
(ii) Continue to pay safety net additive support in any of the four
succeeding years in which the total carrier loop expense adjustment is
limited by the provisions of §36.603. Safety net additive support in the
succeeding four years shall be the lesser of:
(A) The sum of capped support and the safety net additive support received
in the qualifying year; or
(B) The rural telephone company's uncapped support.
[ 66 FR 30086 , June 5, 2001, as amended at 66 FR 65856 , Dec. 21, 2001]
Data Collection
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§ 36.611 Submission of information to the National Exchange Carrier
Association (NECA).
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In order to allow determination of the study areas and wire centers that are
entitled to an expense adjustment pursuant to §36.631, each incumbent local
exchange carrier (LEC) must provide the National Exchange Carrier
Association (NECA) (established pursuant to part 69 of this chapter) with
the information listed for each study area in which such incumbent LEC
operates, with the exception of the information listed in paragraph (h) of
this section, which must be provided for each study area and, if applicable,
for each wire center, as defined in part 54 of this chapter, and each
disaggregation zone as established pursuant to §54.315 of this chapter. This
information is to be filed with NECA by July 31st of each year. The
information provided pursuant to paragraph (h) of this section must be
updated pursuant to §36.612. Rural telephone companies that acquired
exchanges subsequent to May 7, 1997, and incorporated those acquired
exchanges into existing study areas shall separately provide the information
required by paragraphs (a) through (h) of this section for both the acquired
and existing exchanges.
(a) Unseparated, i.e., state and interstate, gross plant investment in
Exchange Line Cable and Wire Facilities (C&WF) Subcategory 1.3 and Exchange
Line Central Office (CO) Circuit Equipment Category 4.13. This amount shall
be calculated as of December 31st of the calendar year preceding each July
31st filing.
(b) Unseparated accumulated depreciation and noncurrent deferred federal
income taxes, attributable to Exchange Line C&WF Subcategory 1.3 investment,
and Exchange Line CO Circuit Equipment Category 4.13 investment. These
amounts shall be calculated as of December 31st of the calendar year
preceding each July 31st filing, and shall be stated separately.
(c) Unseparated depreciation expense attributable to Exchange Line C&WF
Subcategory 1.3 investment, and Exchange Line CO Circuit Equipment Category
4.13 investment. This amount shall be the actual depreciation expense for
the calendar year preceding each July 31st filing.
(d) Unseparated maintenance expense attributable to Exchange Line C&WF
Subcategory 1.3 investment and Exchange Line CO Circuit Equipment Category
4.113 investment. This amount shall be the actual repair expense for the
calendar year preceding each July 31st filing.
(e) Unseparated corporate operations expenses, operating taxes, and the
benefits and rent proportions of operating expenses. The amount for each of
these categories of expense shall be the actual amount for that expense for
the calendar year preceding each July 31st filing. The amount for each
category of expense listed shall be stated separately.
(f) Unseparated gross telecommunications plant investment. This amount shall
be calculated as of December 31st of the calendar year preceding each July
31st filing.
(g) Unseparated accumulated depreciation and noncurrent deferred federal
income taxes attributable to local unseparated telecommunications plant
investment. This amount shall be calculated as of December 31st of the
calendar year preceding each July 31st filing.
(h) For rural telephone companies, as that term is defined in §51.5 of this
chapter, the number of working loops for each study area. For non-rural
telephone companies, the number of working loops for each study area and for
each wire center. For universal service support purposes, 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. These figures shall be calculated as of
December 31st of the calendar year preceding each July 31st filing.
[ 62 FR 32947 , June 17, 1997, as amended at 64 FR 67430 , Dec. 1, 1999; 66 FR 30086 , June 5, 2001]
§ 36.612 Updating information submitted to the National Exchange Carrier
Association.
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(a) Any rural telephone company, as that term is defined in §51.5 of this
chapter, may update the information submitted to the National Exchange
Carrier Association (NECA) on July 31st pursuant to §§36.611 (a) through (h)
one or more times annually on a rolling year basis according to the
schedule, except that rural telephone companies in service areas where an
eligible telecommunications carrier has initiated service and has reported
line count data pursuant to §54.307(c) of this chapter must update the
information submitted to NECA on July 31st pursuant to §36.611(h) according
to the schedule. Every non-rural telephone company must update the
information submitted to NECA on July 31st pursuant to §36.611 (h) according
to the schedule.
(1) Submit data covering the last nine months of the previous calendar year
and the first three months of the existing calendar year no later than
September 30th of the existing year;
(2) Submit data covering the last six months of the previous calendar year
and the first six months of the existing calendar year no later than
December 30th of the existing year;
(3) Submit data covering the last three months of the second previous
calendar year and the first nine months of the previous calendar year no
later than March 30th of the existing year.
(b) [Reserved]
[ 52 FR 17229 , May 6, 1987, as amended at 62 FR 32947 , June 17, 1997; 63 FR 2124 , Jan. 13, 1998; 64 FR 67430 , Dec. 1, 1999; 66 FR 30086 , June 5, 2001]
§ 36.613 Submission of information by the National Exchange Carrier
Association.
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(a) On October 1 of each year, the National Exchange Carrier Association
shall file with the Commission and Administrator the information listed
below. Information filed with the Commission shall be compiled from
information provided to the Association by telephone companies pursuant to
§36.611.
(1) The unseparated loop cost for each study area and a nationwide-average
unseparated loop cost.
(2) The annual amount of the high cost expense adjustment for each study
area, and the total nationwide amount of the expense adjustment.
(3) The dollar amount and percentage of the increase in the nationwide
average unseparated loop cost, as well as the dollar amount and percentage
increase for each study area, for the previous 5 years, or the number of
years NECA has been receiving information under §36.611, whichever is the
shorter time period.
(b) [Reserved]
[ 52 FR 17229 , May 6, 1997, as amended at 62 FR 32948 , June 17, 1997; 63 FR 2124 , Jan. 13, 1998]
Calculation of Loop Costs for Expense Adjustment
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§ 36.621 Study area total unseparated loop cost.
top
(a) For the purpose of calculating the expense adjustment, the study area
total unseparated loop cost equals the sum of the following:
(1) Return component for net unseparated Exchange Line C&WF subcategory 1.3
investment and Exchange Line CO Circuit Equipment Category 4.13 investment.
This amount is calculated by deducting the accumulated depreciation and
noncurrent deferred Federal income taxes attributable to C&WF subcategory
1.3 investment and Exchange Line Category 4.13 circuit investment reported
pursuant to §36.611(b) from the gross investment in Exchange Line C&WF
subcategory 1.3 and CO Category 4.13 reported pursuant to §36.611(a) to
obtain the net unseparated C&WF subcategory 1.3 investment, and CO Category
4.13 investment. The net unseparated C&WF subcategory 1.3 investment and CO
Category 4.13 investment is multiplied by the study area's authorized
interstate rate of return.
(2) Depreciation expense attributable to C&WF subcategory 1.3 investment,
and CO Category 4.13 investment as reported in §36.611(c).
(3) Maintenance expense attributable to C&WF subcategory 1.3 investment, and
CO Category 4.13 investment as reported in §36.611(d).
(4) Corporate Operations Expenses, Operating Taxes and the benefits and rent
portions of operating expenses, as reported in §36.611(e) attributable to
investment in C&WF Category 1.3 and COE Category 4.13. This amount is
calculated by multiplying the total amount of these expenses and taxes by
the ratio of the unseparated gross exchange plant investment in C&WF
Category 1.3 and COE Category 4.13, as reported in §36.611(a), to the
unseparated gross telecommunications plant investment, as reported in
§36.611(f). Total Corporate Operations Expense, for purposes of calculating
universal service support payments beginning July 1, 2001, shall be limited
to the lesser of:
(i) The actual average monthly per-loop Corporate Operations Expense; or
(ii) A monthly per-loop amount computed according to paragraphs
(a)(4)(ii)(A), (a)(4)(ii)(B), (a)(4)(ii)(C), and (a)(4)(ii)(D) of this
section. To the extent that some carriers' corporate operations expenses are
disallowed pursuant to these limitations, the national average unseparated
cost per loop shall be adjusted accordingly.
(A) For study areas with 6,000 or fewer working loops the amount monthly per
working loop shall be $33.30853−(.00246 × the number of working loops), or,
$50,000 ÷ the number of working loops, whichever is greater;
(B) For study areas with more than 6,000 but fewer than 18,006 working
loops, the monthly amount per working loop shall be $3.83195 + (88,429.20 ÷
the number of working loops); and
(C) For study areas with 18,006 or more working loops, the monthly amount
per working loop shall be $8.74472.
(D) Beginning January 1, 2002, the monthly per-loop amount computed
according to paragraphs (a)(4)(ii)(A), (a)(4)(ii)(B), and (a)(4)(ii)(C) of
this section shall be adjusted each year to reflect the annual percentage
change in the United States Department of Commerce's Gross Domestic
Product-Chained Price Index (GDP-CPI).
(b) [Reserved]
[ 52 FR 17229 , May 6, 1987, as amended at 56 FR 27422 , June 14, 1991; 62 FR 32948 , June 17, 1997; 62 FR 40748 , July 30, 1997; 63 FR 2124 , Jan. 13, 1998;
66 FR 30086 , June 5, 2001]
§ 36.622 National and study area average unseparated loop costs.
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(a) National Average Unseparated Loop Cost per Working Loop. Except as
provided in paragraph (c) of this section, this is equal to the sum of the
Loop Costs for each study area in the country as calculated pursuant to
§36.621(a) divided by the sum of the working loops reported in §36.611(h)
for each study area in the country. The national average unseparated loop
cost per working loop shall be calculated by the National Exchange Carrier
Association. Effective July 1, 2001, the national average unseparated loop
cost for purposes of calculating expense adjustments for rural incumbent
local exchange carriers, as that term is defined in §54.5 of this chapter,
is frozen at $240.00.
(1) The National Average Unseparated Loop Cost per Working Loop shall be
recalculated by the National Exchange Carrier Association to reflect the
September, December, and March update filings.
(2) Each new nationwide average shall be used in determining the additional
interstate expense allocation for companies which made filings by the most
recent filing date.
(3) The calculation of a new national average to reflect the update filings
shall not affect the amount of the additional interstate expense allocation
for companies which did not make an update filing by the most recent filing
date.
(b) Study Area Average Unseparated Loop Cost per Working Loop. This is equal
to the unseparated loop costs for the study area as calculated pursuant to
§36.621(a) divided by the number of working loops reported in §36.611(h) for
the study area.
(1) If a company elects to, or is required to, update the data which it has
filed with the National Exchange Carrier Association as provided in
§36.612(a), the study area average unseparated loop cost per working loop
and the amount of its additional interstate expense allocation shall be
recalculated to reflect the updated data.
(2) [Reserved]
(c) The National Average Unseparated Loop Cost per Working Loop shall be the
greater of:
(1) The amount calculated pursuant to the method described in paragraph (a)
of this section; or
(2) Until June 30, 2001, an amount calculated to produce the maximum total
Universal Service Fund allowable pursuant to §36.601(c). Effective July 1,
2001, for non-rural carriers, an amount calculated to produce the maximum
non-rural carrier portion of nationwide loop cost expense adjustment
allowable pursuant to §36.602. Effective July 1, 2001, for rural carriers,
an amount calculated to produce the maximum rural incumbent local exchange
carrier portion of nationwide loop cost expense adjustment allowable
pursuant to §36.603(a).
[ 52 FR 17229 , May 6, 1987, as amended at 56 FR 27422 , June 14, 1991; 58 FR 69242 , Dec. 30, 1993; 60 FR 65012 , Dec. 15, 1995; 61 FR 34377 , July 2, 1996;
62 FR 32948 , June 17, 1997; 63 FR 2125 , Jan. 13, 1998; 64 FR 67430 , Dec. 1,
1999; 66 FR 30087 , June 5, 2001; 72 FR 46919 , Aug. 22, 2007]
Calculation of Expense Adjustment—Additional Interstate Expense Allocation
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§ 36.631 Expense adjustment.
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(a)–(b) [Reserved]
(c) Beginning January 1, 1988, for study areas reporting 200,000 or fewer
working loops pursuant to §36.611(h), the expense adjustment (additional
interstate expense allocation) is equal to the sum of paragraphs (c)(1)
through (2) of this section. After January 1, 2000, the expense adjustment
(additional interstate expense allocation) for non-rural telephone companies
serving study areas reporting 200,000 or fewer working loops pursuant to
§36.611(h) shall be calculated pursuant to §54.309 of this chapter or
§54.311 of this chapter (which relies on this part), whichever is
applicable.
(1) Sixty-five percent of the study area average unseparated loop cost per
working loop as calculated pursuant to §36.622(b) in excess of 115 percent
of the national average for this cost but not greater than 150 percent of
the national average for this cost as calculated pursuant to §36.622(a)
multiplied by the number of working loops reported in §36.611(h) for the
study area; and
(2) Seventy-five percent of the study area average unseparated loop cost per
working loop as calculated pursuant to §36.622(b) in excess of 150 percent
of the national average for this cost as calculated pursuant to §36.622(a)
multiplied by the number of working loops reported in §36.611(h) for the
study area.
(d) Beginning January 1, 1998, for study areas reporting more than 200,000
working loops pursuant to §36.611(h), the expense adjustment (additional
interstate expense allocation) is equal to the sum of paragraphs (d)(1)
through (4) of this section. After January 1, 2000, the expense adjustment
(additional interstate expense allocation) for non-rural telephone companies
serving study areas reporting more than 200,000 working loops pursuant to
§36.611(h) shall be calculated pursuant to §54.309 of this chapter or
§54.311 of this chapter (which relies on this part), whichever is
applicable.
(1) Ten percent of the study area average unseparated loop cost per working
loop cost per working loop as calculated pursuant to §36.622(b) in excess of
115 percent of the national average for this cost but not greater than 160
percent of the national average for this cost as calculated pursuant to
§36.622(a) multiplied by the number of working loops reported in §36.611(h)
for the study area;
(2) Thirty percent of the study area average unseparated loop cost per
working loop as calculated pursuant to §36.622(b) in excess of 160 percent
of the national average for this cost but not greater than 200 percent of
the national average for this cost as calculated pursuant to §36.622(a)
multiplied by the number of working loops reported in §36.611(h) for the
study area;
(3) Sixty percent of the study area average unseparated loop cost per
working loop as calculated pursuant to §36.622(b) in excess of 200 percent
of the national average for this cost but not greater than 250 percent of
the national average for this cost as calculated pursuant to §36.622(a)
multiplied by the number of working loops reported in §36.611(h) for the
study area; and
(4) Seventy-five percent of the study area average unseparated loop cost per
working loop as calculated pursuant to §36.622(b) in excess of 250 percent
of the national average for this cost as calculated pursuant to §36.622(a)
multiplied by the number of working loops reported in §36.611(h) for the
study area.
(e) Beginning April 1, 1989, the expense adjustment calculated pursuant to
§36.631 (c) and (d) shall be adjusted each year to reflect changes in the
size of the Universal Service Fund resulting from adjustments calculated
pursuant to §36.612(a) made during the previous year. If the resulting
amount exceeds the previous year's fund size, the difference will be added
to the amount calculated pursuant to §36.631 (c) and (d) for the following
year. If the adjustments made during the previous year result in a decrease
in the size of the funding requirement, the difference will be subtracted
from the amount calculated pursuant to §36.631 (c) and (d) for the following
year.
[ 52 FR 17229 , May 6, 1987, as amended at 53 FR 33011 and 33012, Aug. 29,
1988; 63 FR 2125 , Jan. 13, 1998; 64 FR 67430 , Dec. 1, 1999; 64 FR 73428 ,
Dec. 30, 1999; 69 FR 12553 , Mar. 17, 2004; 71 FR 65747 , Nov. 9, 2006]
Transitional Expense Adjustment
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Subpart G [Reserved]
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Appendix to Part 36—Glossary
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The descriptions of terms in this glossary are broad and have been prepared
to assist in understanding the use of such terms in the separation
procedures. Terms which are defined in the text of this part are not
included in this glossary.
Access Line
A communications facility extending from a customer's premises to a serving
central office comprising a subscriber line and, if necessary, a trunk
facility, e.g., a WATS access line.
Book Cost
The cost of property as recorded on the books of a company.
Cable Fill Factor
The ratio of cable conductor or cable pair kilometers in use to total cable
conductor or cable pair kilometers available in the plant, e.g., the ratio
of revenue producing cable pair kilometers in use to total cable pair
kilometers in plant.
Category
A grouping of items of property or expense to facilitate the apportionment
of their costs among the operations and to which, ordinarily, a common
measure of use is applicable.
Central Office
A switching unit, in a telephone system which provides service to the
general public, having the necessary equipment and operations arrangements
for terminating and interconnecting subscriber lines and trunks or trunks
only. There may be more than one central office in a building.
Channel
An electrical path suitable for the transmission of communications between
two or more points, ordinarily between two or more stations or between
channel terminations in Telecommunication Company central offices. A channel
may be furnished by wire, fiberoptics, radio or a combination thereof.
Circuit
A fully operative communications path established in the normal circuit
layout and currently used for message, WATS access, or private line
services.
Circuit Kilometers
The route kilometers or revenue producing circuits in service, determined by
measuring the length in terms of kilometers, of the actual path followed by
the transmission medium.
Common Channel Network Signaling
Channels between switching offices used to transmit signaling information
independent of the subscribers' communication paths or transmission
channels.
Complement (of cable)
A group of conductors of the same general type (e.g., quadded, paired)
within a single cable sheath.
Complex
All groups of operator positions, wherever located, associated with the same
call distribution and/or stored program control unit.
Concentration Equipment
Central office equipment whose function is to concentrate traffic from
subscriber lines onto a lesser number of circuits between the remotely
located concentration equipment and the serving central office concentration
equipment. This concentration equipment is connected to the serving central
office line equipment.
Connection—Minute
The product of (a) the number of messages and, (b) the average minutes of
connection per message.
Conversation—Minute
The product of (a) the number of messages and, (b) the average minutes of
conversation per message.
Conversation—Minute—Kilometers
The product of (a) the number of messages, (b) the average minutes of
conversation per message and (c) the average route kilometers of circuits
involved.
Cost
The cost of property owned by the Telephone Company whose property is to be
apportioned among the operations. This term applies either to property costs
recorded on the books of the company or property costs determined by other
evaluation methods.
Current Billing
The combined amount of charges billed, excluding arrears.
Customer Dialed Charge Traffic
Traffic which is both (a) handled to completion through pulses generated by
the customer and (b) for which either a message unit change, bulk charge or
message toll charge is except for that traffic recorded by means of message
registers.
Customer Premises Equipment
Items of telecommunications terminal equipment in Accounts 2310 referred to
as CPE in §64.702 of the Federal Communication Commission's Rules adopted in
the Second Computer Inquiry such as telephone instruments, data sets,
dialers and other supplemental equipment, and PBX's which are provided by
common carriers and located on customer premises and inventory included in
these accounts to be used for such purposes. Excluded from this
classification are similar items of equipment located on telephone company
premises and used by the company in the normal course of business as well as
over voltage protection equipment, customer premises wiring, coin operated
public or pay telephones, multiplexing equipment to deliver multiple
channels to the customer, mobile radio equipment and transmit earth
stations.
Customer Premises Wire
The segment of wiring from the customer's side of the protector to the
customer premises equipment.
DSA Board
A local dial office switchboard at which are handled assistance calls,
intercepted calls and calls from miscellaneous lines and trunks. It may also
be employed for handling certain toll calls.
DSB Board
A switchboard of a dial system for completing incoming calls received from
manual offices.
Data Processing Equipment
Office equipment such as that using punched cards, punched tape, magnetic or
other comparable storage media as an operating vehicle for recording and
processing information. Includes machines for transcribing raw data into
punched cards, etc., but does not include such items as key-operated,
manually or electrically driven adding, calculating, bookkeeping or billing
machines, typewriters or similar equipment.
Dial Switching Equipment
Switching equipment actuated by electrical impulses generated by a dial or
key pulsing arrangement.
Equal Access Costs
Include only initial incremental presubscription costs and initial
incremental expenditures for hardware and software related directly to the
provision of equal access which would not be required to upgrade the
switching capabilities of the office involved absent the provisions of equal
access.
Equivalent Gauge
A standard cross section of cable conductors for use in equating the
metallic content of cable conductors of all gauge to a common base.
Equivalent Kilometers of 104 Wire
The basic units employed in the allocation of pole lines costs for
determining the relative use made of poles by aerial cables and by aerial
wire conductors of various sizes. This unit reflects the relative loads of
such cable and wire carried on poles.
Equivalent Pair Kilometers
The product of sheath Kilometers and the number of equivalent gauge pairs of
conductors in a cable.
Equivalent Sheath Kilometers
The product of (a) the length of a section of cable in kilometers (sheath
kilometers) and (b) the ratio of the metallic content applicable to a
particular group of conductors in the cable (e.g., conductors assigned to a
category) to the metallic content of all conductors in the cable.
Exchange Transmission Plant
This is a combination of (a) exchange cable and wire facilities (b) exchange
central office circuit equipment, including associated land and buildings
and (c) information origination/termination equipment which forms a complete
channel.
Holding Time
The time in which an item of telephone plant is in actual use either by a
customer or an operator. For example, on a completed telephone call, holding
time includes conversation time as well as other time in use. At local dial
offices any measured minutes which result from other than customer attempts
to place calls (as evidenced by the dialing of at least one digit) are not
treated as holding time.
Host Central Office
An electronic analog or digital base switching unit containing the central
call processing functions which service the host office and its remote
locations.
Information Origination/Termination Equipment
Equipment used to input into or receive output from the telecommunications
network.
Interexchange Channel
A circuit which is included in the interexchange transmission equipment.
Interexchange Transmission Equipment
The combination of (a) interexchange cable and wire facilities, (b)
interexchange circuit equipment and, (c) associated land and buildings.
Interlocal Trunk
A circuit between two local central office units, either manual or dial.
Interlocal trunks may be used for either exchange or toll traffic or both.
Intertoll Circuits
Circuits between toll centers and circuits between a toll center and a
tandem system in a different toll center area.
Local Channel
The portion of a private line circuit which is included in the exchange
transmission plant. However, common usage of this term usually excludes
information origination/termination equipment.
Local Office
A central office serving primarily as a place of termination for subscriber
lines and for providing telephone service to the subscribers on these lines.
Loop
A pair of wires, or its equivalent, between a customer's station and the
central office from which the station is served.
Message
A completed call, i.e., a communication in which a conversation or exchange
of information took place between the calling and called parties.
Message Service or Message Toll Service
Switched service furnished to the general public (as distinguished from
private line service). Except as otherwise provided, this includes exchange
switched services and all switched services provided by interexchange
carriers and completed by a local telephone company's access services, e.g.,
MTS, WATS, Execunet, open-end FX and CCSA/ONALs.
Message Units
Unit of measurement used for charging for measured message telephone
exchange traffic within a specified area.
Metropolitan Service Area
The area around and including a relatively large city and in which
substantially all of the message telephone traffic between the city and the
suburban points within the area is classified as exchange in one or both
directions.
Minutes-of-Use
A unit of measurement expressed as either holding time or conversation time.
Minutes-of-Use-Kilometers
The product of (a) the number of minutes-of-use and (b) the average route
kilometers of circuits involved.
Multi-Center Exchange
An exchange area in which are located two or more local central office
buildings or wire centers.
Operations
The term denoting the general classifications of services rendered to the
public for which separate tariffs are filed, namely exchange, state toll and
interstate toll.
Operator Trunks
A general term, ordinarily applied to trunks between manually operated
switchboard positions and local dial central offices in the same wire
center.
Private Line Service
A service for communications between specified locations for a continuous
period or for regularly recurring periods at stated hours.
Remote Access Line
An access line (e.g., for WATS service) between a subscriber's premises in
one toll rate center and a serving central office located in a different
toll rate center.
Remote Line Location
A remotely located subscriber line access unit which is normally dependent
upon the central processor of the host office for call processing functions.
Remote Trunk Arrangement (RTA)
Arrangement that permits the extension of TSPS functions to remote
locations.
Reservation
That amount or quantity of property kept or set apart for a specific use.
Reserved
Kept or set apart for a specific use.
Separations
The process by which telecommunication property costs, revenues, expenses,
taxes and reserves are apportioned among the operations.
Service Observing Unit
A unit of work measurement which is used as the common denominator to
express the relative time required for handling the various work functions
at service observing boards.
Sheath Kilometers
The actual length of cable in route kilometers.
Special Services
All services other than message telephones, e.g., private line services.
Station-to-Station Basis
The term applied to the basis of toll rate making which contemplates that
the message toll service charge (telephone) covers the use made of all
facilities between the originating station and the terminating station,
including the stations, and the services rendered in connection therewith.
Study Area
Study area boundaries shall be frozen as they are on November 15, 1984.
Subscriber Line or Exchange Line
A communication channel between a telephone station or PBX station and the
central office which serves it.
Subtributary Office
A class of tributary office which does not have direct access to its toll
center, but which is connected to its toll center office by means of
circuits which are switched through to the toll center at another tributary
office.
Tandem Area
The general areas served by the local offices having direct trunks to or
from the tandem office. This area may consist of one or more communities or
may include only a portion of a relatively large city.
Tandem Circuit or Trunk
A general classification of circuits or trunks between a tandem central
office unit and any other central office or switchboard.
Tandem Connection
A call switched at a tandem office.
Tandem Office
A central office unit used primarily as an intermediate switching point for
traffic between local central offices within the tandem area. Where
qualified by a modifying expression, or other explanation, this term may be
applied to an office employed for both the interconnection of local central
offices within the tandem area and for the interconnection of these local
offices with other central offices, e.g., long haul tandem office.
Toll Center
An office (or group of offices) within a city which generally handles the
originating and incoming toll traffic for that city to or from other toll
center areas and which handles through switched traffic. The toll center
normally handles the inward toll traffic for its tributary exchanges and, in
general, either handles the outward traffic originating at its tributaries
or serves as the outlet to interexchange circuits for outward traffic
ticketed and timed at its tributaries. Toll centers are listed as such in
the Toll Rate and Route Guide.
Toll Center Area
The areas served by a toll center, including the toll center city and the
communities served by tributaries of the toll center.
Toll Center Toll Office
A toll office (as contrasted to a local office) in a toll center city.
Toll Circuit
A general term applied to interexchange trunks used primarily for toll
traffic.
Toll Connecting Trunk
A general classification of trunks carrying toll traffic and ordinarily
extending between a local office and a toll office, except trunks classified
as tributary circuits. Examples of toll connecting trunks include toll
switching trunks, recording trunks and recording-completing trunks.
Toll Office
A central office used primarily for supervising and switching toll traffic.
Traffic Over First Routes
A term applied to the routing of traffic and denoting routing via principal
route for traffic between any two points as distinguished from alternate
routes for such traffic.
Operator System
A stored program electronic system associated with one or more toll
switching systems which provides centralized traffic service position
functions for several local offices at one location.
Tributary Circuit
A circuit between a tributary office and a toll switchboard or intertoll
dialing equipment in a toll center city.
Tributary Office
A local office which is located outside the exchange in which a toll center
is located, which has a different rate center from its toll center and which
usually tickets and times only a part of its originating toll traffic, but
which may ticket or time all or none, of such traffic. The toll center
handles all outward traffic not ticketed and timed at the tributary and
normally switches all inward toll traffic from outside the tributary's toll
center to the tributary. Tributary offices are indicated as such in the Toll
Rate and Route Guide.
Trunks
Circuit between switchboards or other switching equipment, as distinguished
from circuits which extend between central office switching equipment and
information origination/termination equipment.
TSPS Complex
All groups of operator positions, wherever located, associated with the same
TSPS stored program control units.
Weighted Standard Work Second
A measurement of traffic operating work which is used to express the
relative time required to handle the various kinds of calls or work
functions, and which is weighted to reflect appropriate degrees of waiting
to serve time.
Wide Area Telephone Service WATS
A toll service offering for customer dial type telecommunications between a
given customer station and stations within specified geographic rate areas
employing a single access line between the customer location and the serving
central office. Each access line may be arranged for either outward
(OUT–WATS) or inward (IN–WATS) service or both.
Wideband Channel
A communication channel of a bandwidth equivalent to twelve or more voice
grade channels.
Working Loop
A revenue producing pair of wires, or its equivalent, between a customer's
station and the central office from which the station is served.
[ 71 FR 65747 , Nov. 9, 2006]
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