Sec.  54.202   Additional requirements for Commission designation of eligible
telecommunications carriers.

   (a) In order to be designated an eligible telecommunications carrier under
   section 214(e)(6), any common carrier in its application must:

   (1) (i) Commit to provide service throughout its proposed designated service
   area  to  all  customers making a reasonable request for service. Each
   applicant shall certify that it will:

   (A) Provide service on a timely basis to requesting customers within the
   applicant's service area where the applicant's network already passes the
   potential customer's premises; and

   (B) Provide service within a reasonable period of time, if the potential
   customer is within the applicant's licensed service area but outside its
   existing network coverage, if service can be provided at reasonable cost by:

   ( 1 ) Modifying or replacing the requesting customer's equipment;

   ( 2 ) Deploying a roof-mounted antenna or other equipment;

   ( 3 ) Adjusting the nearest cell tower;

   ( 4 ) Adjusting network or customer facilities;

   (  5 ) Reselling services from another carrier's facilities to provide
   service; or

   ( 6 ) Employing, leasing or constructing an additional cell site, cell
   extender, repeater, or other similar equipment.

   (ii)  Submit a five-year plan that describes with specificity proposed
   improvements or upgrades to the applicant's network on a wire center-by-wire
   center basis throughout its proposed designated service area. Each applicant
   shall demonstrate how signal quality, coverage or capacity will improve due
   to the receipt of high-cost support; the projected start date and completion
   date for each improvement and the estimated amount of investment for each
   project that is funded by high-cost support; the specific geographic areas
   where the improvements will be made; and the estimated population that will
   be served as a result of the improvements. If an applicant believes that
   service improvements in a particular wire center are not needed, it must
   explain its basis for this determination and demonstrate how funding will
   otherwise be used to further the provision of supported services in that
   area.

   (2) Demonstrate its ability to remain functional in emergency situations,
   including a demonstration that it has a reasonable amount of back-up power
   to ensure functionality without an external power source, is able to reroute
   traffic around damaged facilities, and is capable of managing traffic spikes
   resulting from emergency situations.

   (3) Demonstrate that it will satisfy applicable consumer protection and
   service quality standards. A commitment by wireless applicants to comply
   with the Cellular Telecommunications and Internet Association's Consumer
   Code for Wireless Service will satisfy this requirement. Other commitments
   will be considered on a case-by-case basis.

   (4) Demonstrate that it offers a local usage plan comparable to the one
   offered  by  the incumbent LEC in the service areas for which it seeks
   designation.

   (5) Certify that the carrier acknowledges that the Commission may require it
   to provide equal access to long distance carriers in the event that no other
   eligible telecommunications carrier is providing equal access within the
   service area.

   (b) Any common carrier that has been designated under section 214(e)(6) as
   an eligible telecommunications carrier or that has submitted its application
   for designation under section 214(e)(6) before the effective date of these
   rules must submit the information required by paragraph (a) of this section
   no later than October 1, 2006, as part of its annual reporting requirements
   under  Sec. 54.209.

   (c)  Public  Interest  Standard.  Prior  to  designating  an  eligible
   telecommunications carrier pursuant to section 214(e)(6), the Commission
   determines that such designation is in the public interest. In doing so, the
   Commission shall consider the benefits of increased consumer choice, and the
   unique advantages and disadvantages of the applicant's service offering. In
   instances where an eligible telecommunications carrier applicant seeks
   designation below the study area level of a rural telephone company, the
   Commission shall also conduct a creamskimming analysis that compares the
   population   density  of  each  wire  center  in  which  the  eligible
   telecommunications carrier applicant seeks designation against that of the
   wire centers in the study area in which the eligible telecommunications
   carrier applicant does not seek designation. In its creamskimming analysis,
   the Commission shall consider other factors, such as disaggregation of
   support pursuant to  Sec. 54.315 by the incumbent local exchange carrier.

   (d) A common carrier seeking designation as an eligible telecommunications
   carrier under section 214(e)(6) for any part of tribal lands shall provide a
   copy of its petition to the affected tribal government and tribal regulatory
   authority, as applicable, at the time it files its petition with the Federal
   Communications  Commission. In addition, the Commission shall send the
   relevant public notice seeking comment on any petition for designation as an
   eligible telecommunications carrier on tribal lands, at the time it is
   released, to the affected tribal government and tribal regulatory authority,
   as applicable, by overnight express mail.

   (e)  All eligible telecommunications carriers shall retain all records
   required to demonstrate to auditors that the support received was consistent
   with the universal service high-cost program rules. These records should
   include  the following: data supporting line count filings; historical
   customer records; fixed asset property accounting records; general ledgers;
   invoice copies for the purchase and maintenance of equipment; maintenance
   contracts  for  the  upgrade  or  equipment;  and  any  other relevant
   documentation. This documentation must be maintained for at least five years
   from the receipt of funding.

   [ 70 FR 29978 , May 25, 2005, as amended at  72 FR 54217 , Sept. 24, 2007]