Goto Section: 69.121 | 69.124 | Table of Contents
FCC 69.123
Revised as of October 1, 2008
Goto Year:2007 |
2009
Sec. 69.123 Density pricing zones for special access and switched transport.
Link to an amendment published at 69 FR 25336 , May 6, 2004.
(a)(1) Incumbent local exchange carriers not subject to price cap regulation
may establish any number of density zones within a study area that is used
for purposes of jurisdictional separations, provided that each zone, except
the highest-cost zone, accounts for at least 15 percent of that carrier's
special access and transport revenues within that study area, calculated
pursuant to the methodology set forth in Sec. 69.725.
(2) Such a system of pricing zones shall be designed to reasonably reflect
cost-related characteristics, such as the density of total interstate
traffic in central offices located in the respective zones.
(3) Non-price cap incumbent local exchange carriers may establish only one
set of density pricing zones within each study area, to be used for the
pricing of both special and switched access pursuant to paragraphs (c) and
(d) of this section.
(b)(1) Incumbent local exchange carriers subject to price cap regulation may
establish any number of density zones within a study area that is used for
purposes of jurisdictional separations, provided that each zone, except the
highest-cost zone, accounts for at least 15 percent of that carrier's
trunking basket revenues within that study area, calculated pursuant to the
methodology set forth in Sec. 69.725.
(2) Price cap incumbent local exchange carriers may establish only one set
of density pricing zones within each study area, to be used for the pricing
of all services within the trunking basket for which zone density pricing is
permitted.
(3) An access service subelement for which zone density pricing is permitted
shall be deemed to be offered in the zone that contains the telephone
company location from which the service is provided.
(4) An access service subelement for which zone density pricing is permitted
which is provided to a customer between telephone company locations shall be
deemed to be offered in the highest priced zone that contains one of the
locations between which the service is offered.
(c) Notwithstanding Sec. 69.3(e)(7), in study areas in which a telephone company
offers a cross-connect, as described in Sec. 69.121(a)(1), for the transmission
of interstate special access traffic, telephone companies may charge rates
for special access sub-elements of DS1, DS3, and such other special access
services as the Commission may designate, that differ depending on the zone
in which the service is offered, provided that the charges for any such
service shall not be deaveraged within any such zone.
(1) A special access service subelement shall be deemed to be offered in the
zone that contains the telephone company location from which the service is
provided.
(2) A special access service subelement provided to a customer between
telephone company locations shall be deemed to be offered in the highest
priced zone that contains one of the locations between which the service is
offered.
(d) Notwithstanding Sec. 69.3(e)(7), in study areas in which a telephone company
offers a cross-connect, as described in Sec. 69.121(a)(1), for the transmission
of interstate switched traffic, or is using collocated facilities to
interconnect with telephone company interstate switched transport services,
telephone companies may charge rates for sub-elements of direct-trunked
transport, tandem-switched transport, entrance facilities, and dedicated
signaling transport that differ depending on the zone in which the service
is offered, provided that the charge for any such service shall not be
deaveraged within any such zone.
(1) A switched transport service subelement shall be deemed to be offered in
the zone that contains the telephone company location from which the service
is provided.
(2) A switched transport service subelement provided to a customer between
telephone company locations shall be deemed to be offered in the highest
priced zone that contains either of the locations between which the service
is offered.
(e)(1) Telephone companies not subject to price cap regulation may charge a
rate for each service in the highest priced zone that exceeds the rate for
the same service in the lowest priced zone by no more than fifteen percent
of the rate for the service in the lowest priced zone during the period from
the date that the zones are initially established through the following June
30. The difference between the rates for any such service in the highest
priced zone and the lowest priced zone in a study area, measured as a
percentage of the rate for the service in the lowest priced zone, may
increase by no more than an additional fifteen percentage points in each
succeeding year, measured from the rate differential in effect on the last
day of the preceding tariff year.
(2) Notwithstanding Sec. 69.3(e)(7), incumbent local exchange carriers subject
to price cap regulation may charge different rates for services in different
zones pursuant to Sec. 61.47(f) of this chapter, provided that the charges for
any such service are not deaveraged within any such zone.
(f)(1) An incumbent local exchange carrier that establishes density pricing
zones under this section must reallocate additional amounts recovered under
the interconnection charge prescribed in Sec. 69.124 of this subpart to
facilities-based transport rates, to reflect the higher costs of serving
lower density areas. Each incumbent local exchange carrier must reallocate
costs from the interexchange charge each time it increases the ratio between
the prices in its lowest-cost zone and any other zone in that study area.
(2) Any incumbent local exchange carrier that has already deaveraged its
rates on January 1, 1998 must reallocate an amount equivalent to that
described in paragraph (f)(1) of this section from the interconnection
charge prescribed in Sec. 69.124 to its transport services.
(3) Price cap local exchange carriers shall reassign to direct-trunked
transport and tandem-switched transport categories or subcategories
interconnection charge amounts reallocated under paragraph (f)(1) or (f)(2)
of this section in a manner that reflects the way density pricing zones are
being implemented by the incumbent local exchange carrier.
[ 57 FR 54333 , Nov. 18, 1992, as amended by 58 FR 48764 , Sept. 17, 1993; 62 FR 31935 , June 11, 1997; 64 FR 51267 , Sept. 22, 1999; 69 FR 25336 , May 6,
2004]
Effective Date Note: At 69 FR 25336 , May 6, 2004, Sec. 69.123 was amended by
revising paragraphs (a)(1), (c), and (d) introductory text and by removing
and reserving paragraph (a)(2). These paragraphs contain information
collection and recordkeeping requirements and will not become effective
until approval has been given by the Office of Management and Budget.
Goto Section: 69.121 | 69.124
Goto Year: 2007 |
2009
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