Sec.  54.803   Universal service zones.

   (a) The zones used for determining interstate access universal service
   support shall be the same zones that would be used for End User Common Line
   (EUCL) charge deaveraging as described in  Sec. 69.152(q)(2) of this chapter.

   (b) In a price cap study area where the price cap local exchange carrier has
   not  established  state-approved  prices  for  UNE  loops by zone, the
   Administrator shall develop an estimate of the local exchange carrier's Zone
   Above Benchmark Revenues for transitional purposes, in order to reserve a
   portion of the fund for that study area. This estimate will be included by
   the Administrator in the Nationwide Study Area Above Benchmark Revenues
   calculated pursuant to  Sec. 54.806.

   (1) For the purpose of developing this transitional estimate, the loop and
   port costs estimated by the FCC cost model, or other substitute method if no
   model is available, shall be used.

   (2)  For  the  purpose  of  developing this transitional estimate, the
   administrator shall construct three zones. Wire centers within the study
   area  will be grouped into these zones in such a way that each zone is
   assigned approximately one third of local exchange carrier base period lines
   in the study area, with the lowest cost wire centers assigned to Zone 1, the
   highest cost wire centers assigned to Zone 3, and the remainder to Zone 2.

   [ 65 FR 38690 , June 21, 2000;  65 FR 57740 , Sept. 26, 2000]