§  54.309   Calculation and distribution of forward-looking support for
non-rural carriers.

   (a) Calculation of total support available per state. Beginning January
   1, 2000, non-rural incumbent local exchange carriers, and eligible
   telecommunications carriers serving lines in the service areas of
   non-rural incumbent local exchange carriers, shall receive universal
   service support for the forward-looking economic costs of providing
   supported services in high-cost areas, provided that the State in which
   the lines served by the carrier are located has complied with the
   certification requirements in § 54.313. The total amount of
   forward-looking support available in each State shall be determined
   according to the following methodology:

   (1) For each State, the Commission's cost model shall determine the
   statewide average forward-looking economic cost (FLEC) per line of
   providing the supported services. The statewide average FLEC per line
   shall equal the total FLEC for non-rural carriers to provide the
   supported services in the State, divided by the number of switched
   lines used in the Commission's cost model. The total FLEC shall equal
   average FLEC multiplied by the number of switched lines used in the
   Commission's cost model.

   (2) The Commission's cost model shall determine the national average
   FLEC per line of providing the supported services. The national average
   FLEC per line shall equal the total FLEC for non-rural carriers to
   provide the supported services in all States, divided by the total
   number of switched lines in all States used in the Commission's cost
   model.

   (3) The national cost benchmark shall equal two weighted standard
   deviations above the national average FLEC per line.

   (4) Support calculated pursuant to this section shall be provided to
   non-rural carriers in each State where the statewide average FLEC per
   line exceeds the national cost benchmark. The total amount of support
   provided to non-rural carriers in each State where the statewide
   average FLEC per line exceeds the national cost benchmark shall equal
   76 percent of the amount of the statewide average FLEC per line that
   exceeds the national cost benchmark, multiplied by the number of lines
   reported pursuant to § 36.611, § 36.612, and § 54.307 of this chapter.

   (5) In the event that a State's statewide average FLEC per line does
   not exceed the national cost benchmark, non-rural carriers in such
   State shall be eligible for support pursuant to § 54.311. In the event
   that a State's statewide average FLEC per line exceeds the national
   cost benchmark, but the amount of support otherwise provided to a
   non-rural carrier in that State pursuant to this section is less than
   the amount that would be provided pursuant to § 54.311, the carrier
   shall be eligible for support pursuant to § 54.311.

   (b) Distribution of total support available per state. The total amount
   of support available per State calculated pursuant to paragraph (a) of
   this section shall be distributed to non-rural incumbent local exchange
   carriers, and eligible telecommunications carriers serving lines in the
   service areas of non-rural incumbent local exchange carriers, in the
   following manner:

   (1) The Commission's cost model shall determine the percentage of the
   total amount of support available in the State for each wire center by
   calculating the ratio of the wire center's FLEC above the national cost
   benchmark to the total FLEC above the national cost benchmark of all
   wire centers within the State. A wire center's FLEC above the national
   cost benchmark shall be equal to the wire center's average FLEC per
   line above the national cost benchmark, multiplied by the number of
   switched lines in the wire center used in the Commission's cost model;

   (2) The total amount of support distributed to each wire center shall
   be equal to the percentage calculated for the wire center pursuant to
   paragraph (b)(1) of this section multiplied by the total amount of
   support available in the state;

   (3) The total amount of support for each wire center pursuant to
   paragraph (b)(2) of this section shall be divided by the number of
   lines in the wire center reported pursuant to § 36.611, § 36.612, and
   § 54.307 of this chapter to determine the per-line amount of
   forward-looking support for that wire center;

   (4) The per-line amount of support for each wire center pursuant to
   paragraph (b)(3) of this section shall be multiplied by the number of
   lines served by a non-rural incumbent local exchange carrier in that
   wire center, or by an eligible telecommunications carrier in that wire
   center, as reported pursuant to § 36.611, § 36.612, and § 54.307 of
   this chapter, to determine the amount of forward-looking support to be
   provided to that carrier.

   (5) The total amount of support calculated for each wire center
   pursuant to paragraph (b)(4) of this section shall be divided by the
   number of lines in the wire center to determine the per-line amount of
   forward-looking support for that wire center;

   (6) The per-line amount of support for a wire center calculated
   pursuant to paragraph (b)(5) of the section shall be multiplied by the
   number of lines served by a non-rural incumbent local exchange carrier
   in that wire center, or by an eligible telecommunications carrier in
   that wire center, to determine the amount of forward-looking support to
   be provided to that carrier.

   (c) Petition for waiver. Pursuant to section 1.3 of this chapter, any
   State may file a petition for waiver of paragraph (b) of this section,
   asking the Commission to distribute support calculated pursuant to
   paragraph (a) of this section to a geographic area different than the
   wire center. Such petition must contain a description of the particular
   geographic level to which the State desires support to be distributed,
   and an explanation of how waiver of paragraph (b) of this section will
   further the preservation and advancement of universal service within
   the State.

   [ 64 FR 67431 , Dec. 1, 1999, as amended at  65 FR 26516 , May 8, 2000;  68 FR 69626 , Dec. 15, 2003]