Sec.  69.111   Tandem-switched transport and tandem charge.

   (a)(1) Through June 30, 1998, except as provided in paragraph (l) of this
   section, tandem-switched transport shall consist of two rate elements, a
   transmission charge and a tandem switching charge.

   (2) Beginning July 1, 1998, except as provided in paragraph (l) of this
   section, tandem-switched transport shall consist of three rate elements as
   follows:

   (i) A per-minute charge for transport of traffic over common transport
   facilities between the incumbent local exchange carrier's end office and the
   tandem switching office. This charge shall be expressed in dollars and cents
   per access minute of use and shall be assessed upon all purchasers of common
   transport facilities between the local exchange carrier's end office and the
   tandem switching office.

   (ii) A per-minute tandem switching charge. This tandem switching charge
   shall be set in accordance with paragraph (g) of this section, excluding
   multiplexer and dedicated port costs recovered in accordance with paragraph
   (l) of this section, and shall be assessed upon all interexchange carriers
   and other persons that use incumbent local exchange carrier tandem switching
   facilities.

   (iii) A flat-rated charge for transport of traffic over dedicated transport
   facilities between the serving wire center and the tandem switching office.
   This charge shall be assessed as a charge for dedicated transport facilities
   provisioned between the serving wire center and the tandem switching office
   in accordance with  Sec. 69.112.

   (b) [Reserved]

   (c)(1) Until June 30, 1998:

   (i) Except in study areas where the incumbent local exchange carrier has
   implemented density pricing zones as described in section 69.123, per-minute
   common transport charges described in paragraph (a)(1) of this section shall
   be presumed reasonable if the incumbent local exchange carrier bases the
   charges on a weighted per-minute equivalent of direct-trunked transport DS1
   and DS3 rates that reflects the relative number of DS1 and DS3 circuits used
   in the tandem to end office links (or a surrogate based on the proportion of
   copper and fiber facilities in the interoffice network), calculated using
   the total actual voice-grade minutes of use, geographically averaged on a
   study-area-wide basis, that the incumbent local exchange carrier experiences
   based on the prior year's annual use. Tandem-switched transport transmission
   charges that are not presumed reasonable shall be suspended and investigated
   absent a substantial cause showing by the incumbent local exchange carrier.

   (ii)  In  study  areas  where the incumbent local exchange carrier has
   implemented density pricing zones as described in section 69.123, per-minute
   common transport charges described in paragraph (a)(1) of this section shall
   be presumed reasonable if the incumbent local exchange carrier bases the
   charges on a weighted per-minute equivalent of direct-trunked transport DS1
   and DS3 rates that reflects the relative number of DS1 and DS3 circuits used
   in the tandem to end office links (or a surrogate based on the proportion of
   copper and fiber facilities in the interoffice network), calculated using
   the total actual voice-grade minutes of use, averaged on a zone-wide basis,
   that the incumbent local exchange carrier experiences based on the prior
   year's annual use. Tandem-switched transport transmission charges that are
   not  presumed  reasonable shall be suspended and investigated absent a
   substantial cause showing by the incumbent local exchange carrier.

   (2) Beginning July 1, 1998:

   (i) Except in study areas where the incumbent local exchange carrier has
   implemented density pricing zones as described in section 69.123, per-minute
   common transport charges described in paragraph (a)(2)(i) of this section
   shall be presumed reasonable if the incumbent local exchange carrier bases
   the charges on a weighted per-minute equivalent of direct-trunked transport
   DS1 and DS3 rates that reflects the relative number of DS1 and DS3 circuits
   used  in  the  tandem to end office links (or a surrogate based on the
   proportion of copper and fiber facilities in the interoffice network),
   calculated using the total actual voice-grade minutes of use, geographically
   averaged on a study-area-wide basis, that the incumbent local exchange
   carrier experiences based on the prior year's annual use. Tandem-switched
   transport transmission charges that are not presumed reasonable shall be
   suspended  and  investigated absent a substantial cause showing by the
   incumbent local exchange carrier.

   (ii)  In  study  areas  where the incumbent local exchange carrier has
   implemented density pricing zones as described in section 69.123, per-minute
   common transport charges described in paragraph (a)(2)(i) of this section
   shall be presumed reasonable if the incumbent local exchange carrier bases
   the charges on a weighted per-minute equivalent of direct-trunked transport
   DS1 and DS3 rates that reflects the relative number of DS1 and DS3 circuits
   used  in  the  tandem to end office links (or a surrogate based on the
   proportion of copper and fiber facilities in the interoffice network),
   calculated using the total actual voice-grade minutes of use, averaged on a
   zone-wide basis, that the incumbent local exchange carrier experiences based
   on the prior year's annual use. Tandem-switched transport transmission
   charges that are not presumed reasonable shall be suspended and investigated
   absent a substantial cause showing by the incumbent local exchange carrier.

   (d)(1) Through June 30, 1998, the tandem-switched transport transmission
   charges may be distance-sensitive. Distance shall be measured as airline
   distance between the serving wire center and the end office, unless the
   customer has ordered tandem-switched transport between the tandem office and
   the end office, in which case distance shall be measured as airline distance
   between the tandem office and the end office.

   (2) Beginning July 1, 1998, the per-minute charge for transport of traffic
   over common transport facilities described in paragraph (a)(2)(i) of this
   section may be distance-sensitive. Distance shall be measured as airline
   distance between the tandem switching office and the end office.

   (e)(1)  Through  June  30,  1998,  if  the  telephone  company employs
   distance-sensitive rates:

   (i)  A  distance-sensitive  component shall be assessed for use of the
   transmission  facilities,  including intermediate transmission circuit
   equipment between the end points of the interoffice circuit; and

   (ii) A non-distance-sensitive component shall be assessed for use of the
   circuit equipment at the ends of the interoffice transmission links.

   (2)   Beginning  July  1,  1998,  if  the  telephone  company  employs
   distance-sensitive rates for transport of traffic over common transport
   facilities, as described in paragraph (a)(2)(i) of this section:

   (i) A distance-sensitive component shall be assessed for use of the common
   transport facilities, including intermediate transmission circuit equipment
   between the end office and tandem switching office; and

   (ii) A non-distance-sensitive component shall be assessed for use of the
   circuit equipment at the ends of the interoffice transmission links.

   (f) [Reserved]

   (g)(1) The tandem switching charge imposed pursuant to paragraphs (a)(1) or
   (a)(2)(ii) of this section, as applicable, shall be set to recover twenty
   percent of the annual part 69 interstate tandem revenue requirement plus one
   third of the portion of the tandem switching revenue requirement being
   recovered through the interconnection charge recovered by  Sec.  Sec. 69.124, 69.153,
   and 69.155, excluding multiplexer and dedicated port costs recovered in
   accordance with paragraph (l) of this section.

   (2) Beginning January 1, 1999, the tandem switching charge imposed pursuant
   to paragraph (a)(2)(ii) of this section shall be set to recover the amount
   prescribed  in  paragraph  (g)(1) of this section plus one half of the
   remaining portion of the tandem switching revenue requirement then being
   recovered through the interconnection charge recovered by  Sec.  Sec. 69.124, 69.153,
   and 69.155, excluding multiplexer and dedicated port costs recovered in
   accordance with paragraph (l) of this section.

   (3) Beginning January 1, 2000, the tandem switching charge imposed pursuant
   to paragraph (a)(2)(ii) of this section shall be set to recover the entire
   interstate tandem switching revenue requirement, including that portion
   formerly recovered through the interconnection charge recovered in  Sec.  Sec. 69.124,
   69.153, and 69.155, and excluding multiplexer and dedicated port costs
   recovered in accordance with paragraph (l) of this section.

   (4) A local exchange carrier that is subject to price cap regulation as that
   term is defined in  Sec. 61.3(x) of this chapter shall calculate its tandem
   switching revenue requirement as used in this paragraph by dividing the
   tandem switching revenue requirement that was included in the original
   interconnection charge by the original interconnection charge, and then
   multiplying  this  result by the annual revenues recovered through the
   interconnection charge, described in  Sec. 69.124, as of June 30, 1997. A local
   exchange carrier that is subject to price cap regulation as that term is
   defined in  Sec. 61.3(x) of this chapter shall then make downward exogenous
   adjustments to the service band index for the interconnection charge service
   category (defined in  Sec. 61.42(e)(2)(vi) of this chapter) and corresponding
   upward  adjustments  to the service band index for the tandem-switched
   transport service category (defined in  Sec. 61.42(e)(2)(v) of this chapter) at
   the times and in the amounts prescribed in paragraphs (g)(1) through (g)(3)
   of this section .

   (h) All telephone companies shall provide tandem-switched transport service.

   (i) Except in the situations set forth in paragraphs (j) and (k) of this
   section,  telephone  companies  may offer term and volume discounts in
   tandem-switched  transport charges within each study area used for the
   purpose of jurisdictional separations, in which interconnectors have taken
   either:

   (1) At least 100 DS1-equivalent cross-connects for the transmission of
   switched traffic (as described in  Sec. 69.121(a)(1) of this chapter) in offices
   in the study area that the telephone company has assigned to the lowest
   priced density pricing zone (zone 1) under an approved density pricing zone
   plan as described in  Sec.  Sec. 61.38(b)(4) and 61.49(k) of this chapter; or

   (2)  An  average  of at least 25 DS1-equivalent cross-connects for the
   transmission of switched traffic per office assigned to the lowest priced
   density pricing zone (zone 1).

   (j) In study areas in which the telephone company has implemented density
   zone pricing, but no offices have been assigned to the lowest priced density
   pricing  zone  (zone 1), telephone companies may offer term and volume
   discounts in tandem-switched transport charges within the study area when
   interconnectors have taken at least 5 DS1-equivalent cross-connects for the
   transmission of switched traffic (as described in  Sec. 69.121(a)(1) of this
   chapter) in offices in the study area.

   (k)  In study areas in which the telephone company has not implemented
   density  zone  pricing,  telephone companies may offer term and volume
   discounts in tandem-switched transport charges when interconnectors have
   taken at least 100 DS1-equivalent cross-connects for the transmission of
   switched traffic (as described in  Sec. 69.121(a)(1) of this chapter) in offices
   in the study area.

   (l) In addition to the charges described in this section, price cap local
   exchange carriers shall establish separate charges for multiplexers and
   dedicated trunk ports used in conjunction with the tandem switch as follows:

   (1) Local exchange carriers must establish a traffic-sensitive charge for
   DS3/DS1 multiplexers used on the end office side of the tandem switch,
   assessed on purchasers of common transport to the tandem switch. This charge
   must be expressed in dollars and cents per access minute of use. The maximum
   charge shall be calculated by dividing the total costs of the multiplexers
   on the end office-side of the tandem switch by the annual access minutes of
   use  calculated  for purposes of recovery of common transport costs in
   paragraph  (c) of this section. A similar charge shall be assessed for
   DS1/voice-grade multiplexing provided on the end-office side of analog
   tandem switches.

   (2)(i)  Local exchange carriers must establish a flat-rated charge for
   dedicated DS3/DS1 multiplexing on the serving wire center side of the tandem
   switch provided in conjunction with dedicated DS3 transport service from the
   serving wire center to the tandem switch. This charge shall be assessed on
   interexchange carriers purchasing tandem-switched transport in proportion to
   the number of DS3 trunks provisioned for that interexchange carrier between
   the serving wire center and the tandem-switch.

   (ii)  Local  exchange  carriers must establish a flat-rated charge for
   dedicated DS1/voice-grade multiplexing provided on the serving wire center
   side of analog tandem switches. This charge may be assessed on interexchange
   carriers  purchasing  tandem-switched  transport  in proportion to the
   interexchange carrier's transport capacity on the serving wire center side
   of the tandem.

   (3) Price cap local exchange carriers may recover the costs of dedicated
   trunk  ports on the serving wire center side of the tandem switch only
   through flat-rated charges expressed in dollars and cents per trunk port and
   assessed upon the purchaser of the dedicated trunk terminating at the port.

   (m) In addition to the charges described in this section, non-price cap
   local exchange carriers may establish separate charges for multiplexers and
   dedicated trunk ports used in conjunction with the tandem switch as follows:

   (1)(i) Non-price cap local exchange carriers may establish a flat-rated
   charge for dedicated DS3/DS1 multiplexing on the serving wire center side of
   the tandem switch provided in conjunction with dedicated DS3 transport
   service from the serving wire center to the tandem switch. This charge shall
   be assessed on interexchange carriers purchasing tandem-switched transport
   in proportion to the number of DS3 trunks provisioned for that interexchange
   carrier between the serving wire center and the tandem switch.

   (ii) Non-price cap local exchange carriers may establish a flat-rated charge
   for dedicated DS1/voice-grade multiplexing provided on the serving wire
   center  side of analog tandem switches. This charge may be assessed on
   interexchange carriers purchasing tandem-switched transport in proportion to
   the interexchange carrier's transport capacity on the serving wire center
   side of the tandem.

   (2) Non-price cap local exchange carriers may recover the costs of dedicated
   trunk ports on the serving wire center side of the tandem switch through
   flat-rated  charges  expressed in dollars and cents per trunk port and
   assessed upon the purchaser of the dedicated trunk terminating at the port.

   [ 57 FR 54720 , Nov. 20, 1992, as amended at  58 FR 41190 , Aug. 3, 1993;  58 FR 48764 , Sept. 17, 1993;  60 FR 50121 , Sept. 28, 1995;  62 FR 31933 , June 11,
   1997;  62 FR 40463 , July 29, 1997;  62 FR 56132 , Oct. 29, 1997;  64 FR 46594 ,
   Aug. 26, 1999;  66 FR 59732 , Nov. 30, 2001]