Goto Section: 51.913 | 51.917 | Table of Contents
FCC 51.915
Revised as of October 2, 2015
Goto Year:2014 |
2016
§ 51.915 Recovery mechanism for price cap carriers.
(a) Scope. This section sets forth the extent to which Price Cap Carriers
may recover certain revenues, through the recovery mechanism outlined below,
to implement reforms adopted in FCC 11-161 and as required by § 20.11(b) of
this chapter, and § § 51.705 and 51.907.
(b) Definitions. As used in this section and § 51.917, the following terms
mean:
(1) CALLS Study Area. A CALLS Study Area means a Price Cap Carrier study
area that participated in the CALLS plan at its inception. See Access Charge
Reform, Price Cap Performance Review for Local Exchange Carriers, Low-Volume
Long-Distance Users, Federal-State Joint Board on Universal Service, Sixth
Report and Order in CC Docket Nos. 96-262 and 94-1, Report and Order in CC
Docket No. 99-249, Eleventh Report and Order in CC Docket No. 96-45, 15 FCC
Rcd 12962 (2000).
(2) CALLS Study Area Base Factor. The CALLS Study Area Base Factor is equal
to ninety (90) percent.
(3) CMRS Net Reciprocal Compensation Revenues. CMRS Net Reciprocal
Compensation Revenues means the reduction in net reciprocal compensation
revenues required by § 20.11 of this chapter associated with CMRS traffic as
described in § 51.701(b)(2), which is equal to its Fiscal Year 2011 net
reciprocal compensation revenues from CMRS carriers.
(4) Expected Revenues for Access Recovery Charges. Expected Revenues for
Access Recovery Charges are calculated using the tariffed Access Recovery
Charge rate for each class of service and the forecast demand for each class
of service.
(5) Initial Composite Terminating End Office Access Rate. Initial Composite
Terminating End Office Access Rate means Fiscal Year 2011 terminating
interstate End Office Access Service revenue divided by Fiscal Year 2011
terminating interstate end office switching minutes.
(6) Lifeline Customer. A Lifeline Customer is a residential lifeline
subscriber as defined by § 54.400(a) of this chapter that does not pay a
Residential and/or Single-Line Business End User Common Line Charge.
(7) Net Reciprocal Compensation. Net Reciprocal Compensation means the
difference between a carrier's reciprocal compensation revenues from
non-access traffic less its reciprocal compensation payments for non-access
traffic during a stated period of time. For purposes of the calculations
made under § § 51.915 and 51.917, the term does not include reciprocal
compensation revenues for non-access traffic exchanged between Local
Exchange Carriers and CMRS providers; recovery for such traffic is addressed
separately in these sections.
(8) Non-CALLS Study Area. Non-CALLS Study Area means a Price Cap Carrier
study area that did not participate in the CALLS plan at its inception.
(9) Non-CALLS Study Area Base Factor. The Non-CALLS Study Area Base Factor
is equal to one hundred (100) percent for five (5) years beginning July 1,
2012. Beginning July 1, 2017, the Non-CALLS Price Cap Carrier Base Factor
will be equal to ninety (90) percent.
(10) Price Cap Carrier Traffic Demand Factor. The Price Cap Carrier Traffic
Demand Factor, as used in calculating eligible recovery, is equal to ninety
(90) percent for the one-year period beginning July 1, 2012. It is reduced
by ten (10) percent of its previous value in each subsequent annual tariff
filing.
(11) Rate Ceiling Component Charges. The Rate Ceiling Component Charges
consists of the federal end user common line charge and the Access Recovery
Charge; the flat rate for residential local service (sometimes know as the
“1FR” or “R1” rate), mandatory extended area service charges, and state
subscriber line charges; per-line state high cost and/or state access
replacement universal service contributions, state E911 charges, and state
TRS charges.
(12) Residential Rate Ceiling. The Residential Rate Ceiling, which consists
of the total of the Rate Ceiling Component Charges, is set at $30 per month.
The Residential Rate Ceiling will be the higher of the rate in effect on
January 1, 2012, or the rate in effect on January 1 in any subsequent year.
(13) True-up Revenues for Access Recovery Charge. True-up revenues for
Access Recovery Charge are equal to (projected demand minus actual realized
demand for Access Recovery Charges) times the tariffed Access Recovery
Charge. This calculation shall be made separately for each class of service
and shall be adjusted to reflect any changes in tariffed rates for the
Access Recovery Charge. Realized demand is the demand for which payment has
been received by the time the true-up is made.
(14) Intrastate 2014 Composite Terminating End Office Access Rate. The
Intrastate 2014 Composite Terminating End Office Access Rate as used in this
section is determined by
(i) If a separate terminating rate is not already generally available,
developing separate intrastate originating and terminating end office rates
in accordance with § 51.907(d)(1) using end office access rates at their June
30, 2014, rate caps;
(ii) Multiplying the existing terminating June 30, 2014, intrastate end
office access rates, or the terminating rates developed in paragraph
(b)(14)(i) of this section, by the relevant Fiscal Year 2011 intrastate
demand; and
(iii) Dividing the sum of the revenues determined in paragraph (b)(14)(ii)
of this section by 2011 Fiscal Year intrastate terminating local switching
minutes.
(c) 2011 Price Cap Carrier Base Period Revenue. 2011 Price Cap Carrier Base
Period Revenue is equal to the sum of the following three components:
(1) Terminating interstate end office switched access revenues and
interstate Tandem-Switched Transport Access Service revenues for Fiscal Year
2011 received by March 31, 2012;
(2) Fiscal Year 2011 revenues from Transitional Intrastate Access Service
received by March 31, 2012; and
(3) Fiscal Year 2011 reciprocal compensation revenues received by March 31,
2012, less fiscal year 2011 reciprocal compensation payments made by March
31, 2012.
(d) Eligible recovery for Price Cap Carriers. (1) Notwithstanding any other
provision of the Commission's rules, a Price Cap Carrier may recover the
amounts specified in this paragraph through the mechanisms described in
paragraphs (e) and (f) of this section.
(i) Beginning July 1, 2012, a Price Cap Carrier's eligible recovery will be
equal to the CALLS Study Area Base Factor and/or the Non-CALLS Study Area
Base Factor, as applicable, multiplied by the sum of the following three
components:
(A) The amount of the reduction in Transitional Intrastate Access Service
revenues determined pursuant to § 51.907(b)(2) multiplied by the Price Cap
Carrier Traffic Demand Factor;
(B) CMRS Net Reciprocal Compensation Revenues multiplied by the Price Cap
Carrier Traffic Demand Factor; and
(C) A Price Cap Carrier's reductions in Fiscal Year 2011 net reciprocal
compensation revenues resulting from rate reductions required by § 51.705,
other than those associated with CMRS traffic as described in § 51.701(b)(2),
which may be calculated in one of the following ways:
(1) Calculate the reduction in Fiscal Year 2011 net reciprocal compensation
revenue as a result of rate reductions required by § 51.705 using Fiscal Year
2011 reciprocal compensation demand, and then multiply by the Price Cap
Carrier Traffic Demand Factor;
(2) By using a composite reciprocal compensation rate as follows:
(i) Establish a composite reciprocal compensation rate for its Fiscal Year
2011 reciprocal compensation receipts and its Fiscal Year 2011 reciprocal
compensation payments by dividing its Fiscal Year 2011 reciprocal
compensation receipts and payments by its respective Fiscal Year 2011 demand
excluding demand for traffic exchanged pursuant to a bill-and-keep
arrangement;
(ii) Calculate the difference between each of the composite reciprocal
compensation rates and the target reciprocal compensation rate set forth in
§ 51.705 for the year beginning July 1, 2012 multiply by the appropriate
Fiscal Year 2011 demand, and then multiply by the Price Cap Carrier Traffic
Demand Factor; or
(3) For the purpose of establishing its recovery for net reciprocal
compensation, a Price Cap Carrier may elect to forgo this step and receive
no recovery for reductions in net reciprocal compensation. If a carrier
elects this option, it may not change its election at a later date.
(ii) Beginning July 1, 2013, a Price Cap Carrier's eligible recovery will be
equal to the CALLS Study Area Base Factor and/or the Non-CALLS Study Area
Base Factor, as applicable, multiplied by the sum of the following three
components:
(A) The cumulative amount of the reduction in Transitional Intrastate Access
Service revenues determined pursuant to § 51.907(b)(2) and (c) multiplied by
the Price Cap Carrier Traffic Demand Factor; and
(B) CMRS Net Reciprocal Compensation Revenues multiplied by the Price Cap
Carrier Traffic Demand Factor; and
(C) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011 net
reciprocal compensation revenues other than those associated with CMRS
traffic as described in § 51.701(b)(2) resulting from rate reductions
required by § 51.705 may be calculated in one of the following ways:
(1) Calculate the cumulative reduction in Fiscal Year 2011 net reciprocal
compensation revenue as a result of rate reductions required by § 51.705
using Fiscal Year 2011 reciprocal compensation demand and then multiply by
the Price Cap Carrier Traffic Demand Factor;
(2) By using a composite reciprocal compensation rate as follows:
(i) Establish a composite reciprocal compensation rate for its Fiscal Year
2011 reciprocal compensation receipts and its Fiscal Year 2011 reciprocal
compensation payments by dividing its Fiscal Year 2011 reciprocal
compensation receipts and payments by its respective Fiscal Year 2011 demand
excluding demand for traffic exchanged pursuant to a bill-and-keep
arrangement;
(ii) Calculate the difference between each of the composite reciprocal
compensation rates and the target reciprocal compensation rate set forth in
§ 51.705 for the year beginning July 1, 2013, using the appropriate Fiscal
Year 2011 demand, and then multiply by the Price Cap Carrier Traffic Demand
Factor; or
(3) For the purpose of establishing its recovery for net reciprocal
compensation, a Price Cap Carrier may elect to forgo this step and receive
no recovery for reductions in net reciprocal compensation. If a carrier
elects this option, it may not change its election at a later date.
(iii) Beginning July 1, 2014, a Price Cap Carrier's eligible recovery will
be equal to the CALLS Study Area Base Factor and/or the Non-CALLS Study Area
Base Factor, as applicable, multiplied by the sum of the amounts in
paragraphs (d)(1)(iii)(A) through (d)(1)(iii)(E), of this section, and then
adding the amount in paragraph (d)(1)(iii)(F) of this section to that
amount:
(A) The amount of the reduction in Transitional Intrastate Access Service
revenues determined pursuant to § 51.907(b)(2) and (c) multiplied by the
Price Cap Carrier Traffic Demand Factor; and
(B) The reduction in interstate switched access revenues equal to the
difference between the 2011 Baseline Composite Terminating End Office Access
Rate and the 2014 Target Composite Terminating End Office Access Rate
determined pursuant to § 51.907(d) using Fiscal Year 2011 terminating
interstate end office switching minutes, and then multiply by the Price Cap
Carrier Traffic Demand Factor;
(C) If the carrier reduced its 2014 Intrastate Terminating End Office Access
Rate(s) pursuant to § 51.907(d)(2), the reduction in revenues equal to the
difference between either the Intrastate 2014 Composite Terminating End
Office Access Rate and the Composite Terminating End Office Access Rate
based on the maximum terminating end office rates that could have been
charged on July 1, 2014, or the 2014 Target Composite Terminating End Office
Access Rate, as applicable, using Fiscal Year 2011 terminating intrastate
end office switching minutes, and then multiply by the Price Cap Carrier
Traffic Demand Factor;
(D) CMRS Net Reciprocal Compensation Revenues multiplied by the Price Cap
Carrier Traffic Demand Factor; and
(E) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011 net
reciprocal compensation revenues other than those associated with CMRS
traffic as described in § 51.701(b)(2) resulting from rate reductions
required by § 51.705 may be calculated in one of the following ways:
(1) Calculate the cumulative reduction in Fiscal Year 2011 net reciprocal
compensation revenue as a result of rate reductions required by § 51.705
using Fiscal Year 2011 reciprocal compensation demand, and then multiply by
the Price Cap Carrier Traffic Demand Factor;
(2) By using a composite reciprocal compensation rate as follows:
(i) Establish a composite reciprocal compensation rate for its Fiscal Year
2011 reciprocal compensation receipts and its Fiscal Year 2011 reciprocal
compensation payments by dividing its Fiscal Year 2011 reciprocal
compensation receipts and payments by its respective Fiscal Year 2011 demand
excluding demand for traffic exchanged pursuant to a bill-and-keep
arrangement;
(ii) Calculate the difference between each of the composite reciprocal
compensation rates and the target reciprocal compensation rate set forth in
§ 51.705 for the year beginning July 1, 2014, using the appropriate Fiscal
Year 2011 demand, and then multiply by the Price Cap Carrier Traffic Demand
Factor; or
(3) For the purpose of establishing its recovery for net reciprocal
compensation, a Price Cap Carrier may elect to forgo this step and receive
no recovery for reductions in net reciprocal compensation. If a carrier
elects this option, it may not change its election at a later date.
(F) An amount equal to True-up Revenues for Access Recovery Charges for the
year beginning July 1, 2012.
(iv) Beginning July 1, 2015, a Price Cap Carrier's eligible recovery will be
equal to the CALLS Study Area Base Factor and/or the Non-CALLS Study Area
Base Factor, as applicable, multiplied by the sum of the amounts in
paragraphs (d)(1)(iv)(A) through (d)(1)(iv)(E) of this section and then
adding the amount in paragraph (d)(1)(iv)(F) of this section to that amount:
(A) The amount of the reduction in Transitional Intrastate Access Service
revenues determined pursuant to § 51.907(b)(2) and (c) multiplied by the
Price Cap Carrier Traffic Demand Factor;
(B) The reduction in interstate switched access revenues equal to the
difference between the 2011 Baseline Composite Terminating End Office Access
Rate and the 2015 Target Composite Terminating End Office Access Rate
determined pursuant to § 51.907(e) using Fiscal Year 2011 terminating
interstate end office switching minutes, and then multiply by the Price Cap
Carrier Traffic Demand Factor;
(C) If the carrier reduced its Intrastate Terminating End Office Access
Rate(s) pursuant to § 51.907(e)(1), the reduction in intrastate switched
access revenues equal to the difference between either the intrastate 2014
Composite Terminating End Office Access Rate and the Composite Terminating
End Office Access Rate based on the maximum terminating end office rates
that could have been charged on July 1, 2015, or the 2015 Target Composite
Terminating End Office Access Rate, as applicable, using Fiscal Year 2011
terminating intrastate end office switching minutes, and then multiply by
the Price Cap Carrier Traffic Demand Factor; and
(D) CMRS Net Reciprocal Compensation Revenues multiplied by the Price Cap
Carrier Traffic Demand Factor;
(E) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011 net
reciprocal compensation revenues other than those associated with CMRS
traffic as described in § 51.701(b)(2) resulting from rate reductions
required by § 51.705 may be calculated in one of the following ways:
(1) Calculate the cumulative reduction in Fiscal Year 2011 net reciprocal
compensation revenue as a result of rate reductions required by § 51.705
using Fiscal Year 2011 reciprocal compensation demand, and then multiply by
the Price Cap Carrier Traffic Demand Factor;
(2) By using a composite reciprocal compensation rate as follows:
(i) Establish a composite reciprocal compensation rate for its Fiscal Year
2011 reciprocal compensation receipts and its Fiscal Year 2011 reciprocal
compensation payments by dividing its Fiscal Year 2011 reciprocal
compensation receipts and payments by its respective Fiscal Year 2011 demand
excluding demand for traffic exchanged pursuant to a bill-and-keep
arrangement;
(ii) Calculate the difference between each of the composite reciprocal
compensation rates and the target reciprocal compensation rate set forth in
§ 51.705 for the year beginning July 1, 2015, using the appropriate Fiscal
Year 2011 demand, and then multiply by the Price Cap Carrier Traffic Demand
Factor; or
(3) For the purpose of establishing its recovery for net reciprocal
compensation, a Price Cap Carrier may elect to forgo this step and receive
no recovery for reductions in net reciprocal compensation. If a carrier
elects this option, it may not change its election at a later date.
(F) An amount equal to True-up Revenues for Access Recovery Charges for the
year beginning July 1, 2013.
(v) Beginning July 1, 2016, a Price Cap Carrier's eligible recovery will be
equal to the CALLS Study Area Base Factor and/or the Non-CALLS Study Area
Base Factor, as applicable, multiplied by the sum of the amounts in
paragraphs (d)(1)(v)(A) through (d)(1)(v)(E), of this section and then
adding the amount in paragraph (d)(1)(v)(F) of this section to that amount:
(A) The amount of the reduction in Transitional Intrastate Access Service
revenues determined pursuant to § 51.907(b)(2) and (c) multiplied by the
Price Cap Carrier Traffic Demand Factor;
(B) The reduction in interstate switched access revenues equal to the
difference between the 2011 Baseline Composite Terminating End Office Access
Rate and $0.0007 determined pursuant to § 51.907(f) using Fiscal Year 2011
terminating interstate end office switching minutes, and then multiply by
the Price Cap Carrier Traffic Demand Factor;
(C) If the carrier reduced its Intrastate Terminating End Office Access
Rate(s) pursuant to § 51.907(f), the reduction in revenues equal to the
difference between either the Intrastate 2014 Composite Terminating End
Office Access Rate and $0.0007 based on the maximum terminating end office
rates that could have been charged on July 1, 2016, or the 2016 Target
Composite Terminating End Office Access Rate, as applicable, using Fiscal
Year 2011 terminating intrastate end office minutes, and then multiply by
the Price Cap Carrier Traffic Demand Factor;
(D) CMRS Net Reciprocal Compensation Revenues multiplied by the Price Cap
Carrier Traffic Demand Factor;
(E) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011 net
reciprocal compensation revenues other than those associated with CMRS
traffic as described in § 51.701(b)(2) resulting from rate reductions
required by § 51.705 may be calculated in one of the following ways:
(1) Calculate the cumulative reduction in Fiscal Year 2011 net reciprocal
compensation revenue as a result of rate reductions required by § 51.705
using Fiscal Year 2011 reciprocal compensation demand, and then multiply by
the Price Cap Carrier Traffic Demand Factor;
(2) By using a composite reciprocal compensation rate as follows:
(i) Establish a composite reciprocal compensation rate for its Fiscal Year
2011 reciprocal compensation receipts and its Fiscal Year 2011 reciprocal
compensation payments by dividing its Fiscal Year 2011 reciprocal
compensation receipts and payments by its respective Fiscal Year 2011 demand
excluding demand for traffic exchanged pursuant to a bill-and-keep
arrangement;
(ii) Calculate the difference between each of the composite reciprocal
compensation rates and the target reciprocal compensation rate set forth in
§ 51.705 for the year beginning July 1, 2016, using the appropriate Fiscal
Year 2011 demand, and then multiply by the Price Cap Carrier Traffic Demand
Factor; or
(3) For the purpose of establishing its recovery for net reciprocal
compensation, a Price Cap Carrier may elect to forgo this step and receive
no recovery for reductions in net reciprocal compensation. If a carrier
elects this option, it may not change its election at a later date.
(F) An amount equal to True-up Revenues for Access Recovery Charges for the
year beginning July 1, 2014.
(vi) Beginning July 1, 2017, a Price Cap Carrier's eligible recovery will be
equal to ninety (90) percent of the sum of the amounts in paragraphs
(d)(1)(vi) through (d)(1)(vi)(F) of this section, and then adding the amount
in paragraph (d)(1)(vi)(G) f this section to that amount:
(A) The amount of the reduction in Transitional Intrastate Access Service
revenues determined pursuant to § 51.907(b)(2) and (c) multiplied by the
Price Cap Carrier Traffic Demand Factor; and
(B) The reduction in interstate switched access revenues equal to the 2011
Baseline Composite Terminating End Office Access Rate using Fiscal Year 2011
terminating interstate end office switching minutes, and then multiply by
the Price Cap Carrier Traffic Demand Factor;
(C) The reduction in revenues equal to the intrastate 2014 Composite
terminating End Office Access Rate using Fiscal Year 2011 terminating
intrastate end office switching minutes, and then multiply by the Price Cap
Carrier Traffic Demand Factor;
(D) The reduction in revenues resulting from reducing the terminating
Tandem-Switched Transport Access Service rate to $0.0007 pursuant to
§ 51.907(g)(2) using Fiscal Year 2011 terminating tandem-switched minutes,
and then multiply by the Price Cap Carrier Traffic Demand Factor;
(E) CMRS Net Reciprocal Compensation Revenues multiplied by the Price Cap
Carrier Traffic Demand Factor; and
(F) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011 net
reciprocal compensation revenues other than those associated with CMRS
traffic as described in § 51.701(b)(2) resulting from rate reductions
required by § 51.705 may be calculated in one of the following ways:
(1) Calculate the cumulative reduction in Fiscal Year 2011 net reciprocal
compensation revenue as a result of rate reductions required by § 51.705
using Fiscal Year 2011 reciprocal compensation demand, and then multiply by
the Price Cap Carrier Traffic Demand Factor;
(2) By using a composite reciprocal compensation rate as follows:
(i) Establish a composite reciprocal compensation rate for its Fiscal Year
2011 reciprocal compensation receipts and its Fiscal Year 2011 reciprocal
compensation payments by dividing its Fiscal Year 2011 reciprocal
compensation receipts and payments by its respective Fiscal Year 2011 demand
excluding demand for traffic exchanged pursuant to a bill-and-keep
arrangement;
(ii) Calculate the difference between each of the composite reciprocal
compensation rates and the target reciprocal compensation rate set forth in
§ 51.705 for the year beginning July 1, 2017, using the appropriate Fiscal
Year 2011 demand, and then multiply by the Price Cap Carrier Traffic Demand
Factor; or
(3) For the purpose of establishing its recovery for net reciprocal
compensation, a Price Cap Carrier may elect to forgo this step and receive
no recovery for reductions in net reciprocal compensation. If a carrier
elects this option, it may not change its election at a later date.
(G) An amount equal to True-up Revenues for Access Recovery Charges for the
year beginning July 1, 2015.
(vii) Beginning July 1, 2018, a Price Cap Carrier's eligible recovery will
be equal to ninety (90) percent of the sum of the amounts in paragraphs
(d)(1)(vii)(A) though (d)(1)(vii)(G) of this section, and then adding the
amount in paragraph (d)(1)(vii)(H) of this section to that amount:
(A) The amount of the reduction in Transitional Intrastate Access Service
revenues determined pursuant to § 51.907(b)(2) and (c) multiplied by the
Price Cap Carrier Traffic Demand Factor; and:
(B) The reduction in interstate switched access revenues equal to the 2011
Baseline Composite Terminating End Office Access Rate using Fiscal Year 2011
terminating interstate end office switching minutes, and then multiply by
the Price Cap Carrier Traffic Demand Factor;
(C) The reduction in revenues equal to the intrastate 2014 Composite
terminating End Office Access Rate using Fiscal Year 2011 terminating
intrastate end office switching minutes, and then multiply by the Price Cap
Carrier Traffic Demand Factor;
(D) The reduction in revenues resulting from reducing the terminating
Tandem-Switched Transport Access Service rate to $0.0007 pursuant to
§ 51.907(g)(2) using Fiscal Year 2011 terminating tandem-switched minutes,
and then multiply by the Price Cap Carrier Traffic Demand Factor;
(E) The reduction in revenues resulting from moving from a terminating
Tandem-Switched Transport Access Service rate tariffed at a maximum of
$0.0007 to removal of intercarrier charges pursuant to § 51.907(h), if
applicable, using Fiscal Year 2011 terminating tandem-switched minutes, and
then multiply by the Price Cap Carrier Traffic Demand Factor;
(F) CMRS Net Reciprocal Compensation Revenues multiplied by the Price Cap
Carrier Traffic Demand Factor; and
(G) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011 net
reciprocal compensation revenues other than those associated with CMRS
traffic as described in § 51.701(b)(2) resulting from rate reductions
required by § 51.705 may be calculated in one of the following ways:
(1) Calculate the cumulative reduction in Fiscal Year 2011 net reciprocal
compensation revenue as a result of rate reductions required by § 51.705
using Fiscal Year 2011 reciprocal compensation demand, and then multiply by
the Price Cap Carrier Traffic Demand Factor;
(2) By using a composite reciprocal compensation rate as follows:
(i) Establish a composite reciprocal compensation rate for its Fiscal Year
2011 reciprocal compensation receipts and its Fiscal Year 2011 reciprocal
compensation payments by dividing its Fiscal Year 2011 reciprocal
compensation receipts and payments by its respective Fiscal Year 2011 demand
excluding demand for traffic exchanged pursuant to a bill-and-keep
arrangement;
(ii) Calculate the difference between each of the composite reciprocal
compensation rates and the target reciprocal compensation rate set forth in
§ 51.705 for the year beginning July 1, 2018, using the appropriate Fiscal
Year 2011 demand, and then multiply by the Price Cap Carrier Traffic Demand
Factor; or
(3) For the purpose of establishing its recovery for net reciprocal
compensation, a Price Cap Carrier may elect to forgo this step and receive
no recovery for reductions in net reciprocal compensation. If a carrier
elects this option, it may not change its election at a later date.
(H) An amount equal to True-up Revenues for Access Recovery Charges for the
year beginning July 1, 2016.
(viii) Beginning July 1, 2019, and in subsequent years, a Price Cap
Carrier's eligible recovery will be equal to the amount calculated in
paragraph (d)(1)(vii)(A) through (d)(1)(vii)(H) of this section before the
application of the Price Cap Carrier Traffic Demand Factor applicable in
2018 multiplied by the appropriate Price Cap Carrier Traffic Demand Factor
for the year in question, and then adding an amount equal to True-up
Revenues for Access Recovery Charges for the year beginning July 1 two years
earlier.
(2) If a Price Cap Carrier recovers any costs or revenues that are already
being recovered through Access Recovery Charges or the Connect America Fund
from another source, that carrier's ability to recover reduced switched
access revenue from Access Recovery Charges or the Connect America Fund
shall be reduced to the extent it receives duplicative recovery. Any
duplicative recovery shall be reflected as a reduction to a carrier's
Eligible Recovery calculated pursuant to § 51.915(d).
(3) A Price Cap Carrier seeking revenue recovery must annually certify as
part of its tariff filings to the Commission and to the relevant state
commission that the carrier is not seeking duplicative recovery in the state
jurisdiction for any Eligible Recovery subject to the recovery mechanism.
(4) If a Price Cap Carrier receives payment for Access Recovery Charges
after the period used to measure the adjustment to reflect the differences
between estimated and actual revenues, it shall treat such payments as
actual revenues in the year the payment is received and shall reflect this
as an additional adjustment for that year.
(e) Access Recovery Charge. (1) A charge that is expressed in dollars and
cents per line per month may be assessed upon end users that may be assessed
an end user common line charge pursuant to § 69.152 of this chapter, to the
extent necessary to allow the Price Cap Carrier to recover some or all of
its eligible recovery determined pursuant to paragraph (d) of this section,
subject to the caps described in paragraph (e)(5) of this section. A Price
Cap Carrier may elect to forgo charging some or all of the Access Recovery
Charge.
(2) Total Access Recovery Charges calculated by multiplying the tariffed
Access Recovery Charge by the projected demand for the year in question may
not recover more than the amount of eligible recovery calculated pursuant to
paragraph (d) of this section for the year beginning on July 1.
(3) For the purposes of this section, a Price Cap Carrier holding company
includes all of its wholly-owned operating companies that are price cap
incumbent local exchange carriers. A Price Cap Carrier Holding Company may
recover the eligible recovery attributable to any price cap study areas
operated by its wholly-owned operating companies through assessments of the
Access Recovery Charge on end users in any price cap study areas operated by
its wholly owned operating companies that are price cap incumbent local
exchange carriers.
(4) Distribution of Access Recovery Charges among lines of different types.
(i) A Price Cap Carrier holding company that does not receive
ICC-replacement CAF support (whether because it elects not to or because it
does not have sufficient eligible recovery after the Access Recovery Charge
is assessed or imputed) may not recover a higher fraction of its total
revenue recovery from Access Recovery Charges assessed on Residential and
Single Line Business lines than:
(A) The number of Residential and Single-Line Business lines divided by
(B) The sum of the number of Residential and Single-Line Business lines and
two (2) times the number of End User Common Line charges assessed on
Multi-Line Business customers.
(ii) For purposes of this subpart, Residential and Single Line Business
lines are lines (other than lines of Lifeline Customers) assessed the
residential and single line business end user common line charge and lines
assessed the non-primary residential end user common line charge.
(iii) For purposes of this subpart, Multi-Line Business Lines are lines
assessed the multi-line business end user common line charge.
(5) Per-line caps and other limitations on Access Recovery Charges
(i) For each line other than lines of Lifeline Customers assessed a primary
residential or single-line business end user common line charge or a
non-primary residential end user common line charge pursuant to § 69.152 of
this Chapter, a Price Cap Carrier may assess an Access Recovery Charge as
follows:
(A) Beginning July 1, 2012, a maximum of $0.50 per month for each line;
(B) Beginning July 1, 2013, a maximum of $1.00 per month for each line;
(C) Beginning July 1, 2014, a maximum of $1.50 per month for each line;
(D) Beginning July 1, 2015, a maximum of $2.00 per month for each line; and
(E) Beginning July 1, 2016, a maximum of $2.50 per month for each line.
(ii) For each line assessed a multi-line business end user common line
charge pursuant to § 69.152 of this chapter, a Price Cap Carrier may assess
an Access Recovery Charge as follows:
(A) Beginning July 1, 2012, a maximum of $1.00 per month for each multi-line
business end user common line charge assessed;
(B) Beginning July 1, 2013, a maximum of $2.00 per month for each multi-line
business end user common line charge assessed;
(C) Beginning July 1, 2014, a maximum of $3.00 per month for each multi-line
business end user common line charge assessed;
(D) Beginning July 1, 2015, a maximum of $4.00 per month for each multi-line
business end user common line charge assessed; and
(E) Beginning July 1, 2016, a maximum of $5.00 per month for each multi-line
business end user common line charge assessed.
(iii) The Access Recovery Charge allowed by paragraph (e)(5)(i) of this
section may not be assessed to the extent that its assessment would bring
the total of the Rate Ceiling Component Charges above the Residential Rate
Ceiling on January 1 of that year. This limitation applies only to the first
residential line obtained by a residential end user and does not apply to
single-line business customers.
(iv) The Access Recovery Charge allowed by paragraph (e)(5)(ii) of this
section may not be assessed to the extent that its assessment would bring
the total of the multi-line business end user common line charge and the
Access Recovery Charge above $12.20 per line.
(v) The Access Recovery Charge assessed on lines assessed the non-primary
residential line end user common line charge in a study area may not exceed
the Access Recovery Charge assessed on residential end-users' first
residential line in that study area.
(vi) The Access Recovery Charge may not be assessed on lines of any Lifeline
Customers.
(vii) If in any year, the Price Cap Carrier's Access Recovery Charge is not
at its maximum, the succeeding year's Access Recovery Charge may not
increase more than $.0.50 per line per month for charges assessed under
paragraph (e)(5)(i) of this section or $1.00 per line per month for charges
assessed under paragraph (e)(5)(ii) of this section.
(f) Price Cap Carrier eligibility for CAF ICC Support. (1) A Price Cap
Carrier shall elect in its July 1, 2012 access tariff filing whether it will
receive CAF ICC Support under this paragraph. A Price Cap Carrier eligible
to receive CAF ICC Support subsequently may elect at any time not to receive
such funding. Once it makes the election not to receive CAFF ICC Support, it
may not elect to receive such funding at a later date.
(2) Beginning July 1, 2012, a Price Cap Carrier may recover any eligible
recovery allowed by paragraph (d) that it could not have recovered through
charges assessed pursuant to paragraph (e) of this section from CAF ICC
Support pursuant to § 54.304. For this purpose, the Price Cap Carrier must
impute the maximum charges it could have assessed under paragraph (e)of this
section.
(3) Beginning July 1, 2017, a Price Cap Carrier may recover two-thirds (
2⁄3 ) of the amount it otherwise would have been eligible to recover under
paragraph (f)(2) from CAF ICC Support.
(4) Beginning July 1, 2018, a Price Cap Carrier may recover one-third (1/3)
of the amount it otherwise would have been eligible to recover under
paragraph (f)(2) of this section from CAF ICC Support.
(5) Beginning July 1, 2019, a Price Cap Carrier may no longer recover any
amount related to revenue recovery under this paragraph from CAF ICC
Support.
(6) A Price Cap Carrier that elects to receive CAF ICC support must certify
with its annual access tariff filing that it has complied with paragraphs
(d) and (e) of this section, and, after doing so, is eligible to receive the
CAF ICC support requested pursuant to paragraph (f) of this section.
[ 76 FR 73856 , Nov. 29, 2011, as amended at 77 FR 48453 , Aug. 14, 2012; 78 FR 26268 , May 6, ;79 2013 FR 28846 , May 20, 2014]
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Goto Section: 51.913 | 51.917
Goto Year: 2014 |
2016
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