§ 54.207   Service areas.

   (a) The term service area means a geographic area established by a
   state commission for the purpose of determining universal service
   obligations and support mechanisms. A service area defines the overall
   area for which the carrier shall receive support from federal universal
   service support mechanisms.

   (b) In the case of a service area served by a rural telephone company,
   service area means such company's "study area" unless and until the
   Commission and the states, after taking into account recommendations of
   a Federal-State Joint Board instituted under section 410(c) of the Act,
   establish a different definition of service area for such company.

   (c) If a state commission proposes to define a service area served by a
   rural telephone company to be other than such company's study area, the
   Commission will consider that proposed definition in accordance with
   the procedures set forth in this paragraph.

   (1) A state commission or other party seeking the Commission's
   agreement in redefining a service area served by a rural telephone
   company shall submit a petition to the Commission. The petition shall
   contain:

   (i) The definition proposed by the state commission; and

   (ii) The state commission's ruling or other official statement
   presenting the state commission's reasons for adopting its proposed
   definition, including an analysis that takes into account the
   recommendations of any Federal-State Joint Board convened to provide
   recommendations with respect to the definition of a service area served
   by a rural telephone company.

   (2) The Commission shall issue a Public Notice of any such petition
   within fourteen (14) days of its receipt.

   (3) The Commission may initiate a proceeding to consider the petition
   within ninety (90) days of the release date of the Public Notice.

   (i) If the Commission initiates a proceeding to consider the petition,
   the proposed definition shall not take effect until both the state
   commission and the Commission agree upon the definition of a rural
   service area, in accordance with paragraph (b) of this section and
   section 214(e)(5) of the Act.

   (ii) If the Commission does not act on the petition within ninety (90)
   days of the release date of the Public Notice, the definition proposed
   by the state commission will be deemed approved by the Commission and
   shall take effect in accordance with state procedures.

   (d) The Commission may, on its own motion, initiate a proceeding to
   consider a definition of a service area served by a rural telephone
   company that is different from that company's study area. If it
   proposes such different definition, the Commission shall seek the
   agreement of the state commission according to this paragraph.

   (1) The Commission shall submit a petition to the state commission
   according to that state commission's procedures. The petition submitted
   to the relevant state commission shall contain:

   (i) The definition proposed by the Commission; and

   (ii) The Commission's decision presenting its reasons for adopting the
   proposed definition, including an analysis that takes into account the
   recommendations of any Federal-State Joint Board convened to provide
   recommendations with respect to the definition of a service area served
   by a rural telephone company.

   (2) The Commission's proposed definition shall not take effect until
   both the state commission and the Commission agree upon the definition
   of a rural service area, in accordance with paragraph (b) of this
   section and section 214(e)(5) of the Act.

   (e) The Commission delegates its authority under paragraphs (c) and (d)
   of this section to the Chief, Wireline Competition Bureau.

   [ 62 FR 32948 , June 17, 1997, as amended at  67 FR 13226 , Mar. 21, 2002]

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Subpart D--Universal Service Support for High Cost Areas

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