Sec.  36.631   Expense adjustment.

   (a)–(b) [Reserved]

   (c) Beginning January 1, 1988, for study areas reporting 200,000 or fewer
   working loops pursuant to  Sec. 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
    Sec. 36.611(h)  shall be calculated pursuant to  Sec. 54.309 of this chapter or
    Sec. 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  Sec. 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  Sec. 36.622(a)
   multiplied by the number of working loops reported in  Sec. 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  Sec. 36.622(b) in excess of 150 percent
   of the national average for this cost as calculated pursuant to  Sec. 36.622(a)
   multiplied by the number of working loops reported in  Sec. 36.611(h) for the
   study area.

   (d) Beginning January 1, 1998, for study areas reporting more than 200,000
   working loops pursuant to  Sec. 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
    Sec. 36.611(h)  shall be calculated pursuant to  Sec. 54.309 of this chapter or
    Sec. 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  Sec. 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
    Sec. 36.622(a) multiplied by the number of working loops reported in  Sec. 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  Sec. 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  Sec. 36.622(a)
   multiplied by the number of working loops reported in  Sec. 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  Sec. 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  Sec. 36.622(a)
   multiplied by the number of working loops reported in  Sec. 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  Sec. 36.622(b) in excess of 250 percent
   of the national average for this cost as calculated pursuant to  Sec. 36.622(a)
   multiplied by the number of working loops reported in  Sec. 36.611(h) for the
   study area.

   (e) Beginning April 1, 1989, the expense adjustment calculated pursuant to
    Sec. 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  Sec. 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  Sec. 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  Sec. 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

Subpart G [Reserved]

Appendix to Part 36—Glossary

   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  Sec. 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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