§ 54.319   Elimination of high-cost support in areas with 100 percent coverage
by an unsubsidized competitor.

   (a) High-cost universal service support provided pursuant to subparts K
   and M of this part shall be eliminated in an incumbent rate-of-return
   local exchange carrier study area where an unsubsidized competitor, or
   combination of unsubsidized competitors, as defined in § 54.5, offer(s)
   to 100 percent of the residential and business locations in the study
   area voice and broadband service at speeds of at least 10 Mbps
   downstream/1 Mbps upstream, with latency suitable for real-time
   applications, including Voice over Internet Protocol, and usage
   capacity that is reasonably comparable to comparable offerings in urban
   areas, at rates that are reasonably comparable to rates for comparable
   offerings in urban areas.

   (b) After a determination there is a 100 percent overlap, the incumbent
   local exchange carrier shall receive the following amount of high-cost
   support:

   (1) In the first year, two-thirds of the lesser of the incumbent's
   total high-cost support in the immediately preceding calendar year or
   $3000 times the number of reported lines as of year-end for the
   immediately preceding calendar year;

   (2) In the second year, one-third of the lesser of the incumbent's
   total high-cost support in the immediately preceding calendar year or
   $3000 times the number of reported lines as of year-end for the
   immediately preceding calendar year;

   (3) In the third year and thereafter, no support shall be paid.

   (c) The Wireline Competition Bureau shall update its analysis of where
   there is a 100 percent overlap on a biennial basis.

   (d) High-cost universal service support pursuant to subpart K of this
   part shall be eliminated for those census blocks of an incumbent
   rate-of-return local exchange carrier study area where an unsubsidized
   competitor, or combination of unsubsidized competitors, as defined in
   § 54.5, offer(s) voice and broadband service meeting the public interest
   obligations in § 54.308(a)(2) to at least 85 percent of residential
   locations in the census block. Qualifying competitors must be able to
   port telephone numbers from consumers.

   (e) After a determination that a particular census block is served by a
   competitor as defined in paragraph (d) of this section, support
   provided pursuant to subpart K of this part shall be disaggregated
   pursuant to a method elected by the incumbent local exchange carrier.
   The sum of support that is disaggregated for competitive and
   non-competitive areas shall equal the total support available to the
   study area without disaggregation.

   (f) For any incumbent local exchange carrier for which the
   disaggregated support for competitive census blocks represents less
   than 25 percent of the support the carrier would have received in the
   study area in the absence of this rule, support provided pursuant to
   subpart K of this part shall be reduced according to the following
   schedule:

   (1) In the first year, 66 percent of the incumbent's disaggregated
   support for the competitive census block will be provided;

   (2) In the second year, 33 percent of the incumbent's disaggregated
   support for the competitive census blocks will be provided;

   (3) In the third year and thereafter, no support shall be provided
   pursuant to subpart K of this part for any competitive census block.

   (g) For any incumbent local exchange carrier for which the
   disaggregated support for competitive census blocks represents 25
   percent or more of the support the carrier would have received in the
   study area in the absence of this rule, support shall be reduced for
   each competitive census block according to the following schedule:

   (1) In the first year, 83 percent of the incumbent's disaggregated
   support for the competitive census blocks will be provided;

   (2) In the second year, 66 percent of the incumbent's disaggregated
   support for the competitive census blocks will be provided;

   (3) In the third year, 49 percent of the incumbent's disaggregated
   support for the competitive census blocks will be provided;

   (4) In the fourth year, 32 percent of the incumbent's disaggregated
   support the competitive census block will be provided;

   (5) In the fifth year, 15 percent of the incumbent's disaggregated
   support the competitive census blocks will be provided;

   (6) In the sixth year and thereafter, no support shall be paid provided
   pursuant to subpart K of this part for any competitive census block.

   (h) The Wireline Competition Bureau shall update its analysis of
   competitive overlap in census blocks every seven years, utilizing the
   current public interest obligations in § 54.308(a)(2) as the standard
   that must be met by an unsubsidized competitor.

   [ 80 FR 4478 , Jan. 27, 2015, as amended at  81 FR 24342 , Apr. 25, 2016;
    82 FR 14340 , Mar. 20, 2017;  83 FR 14189 , Apr. 3, 2018]

   Effective Date Note: At  81 FR 24342 . Apr. 25, 2016, § 54.319(a) was
   revised and (d) through (h) were added. Paragraph (e) contains
   information collection and recordkeeping requirements and will not
   become effective until approval has been given by the Office of
   Management and Budget.

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