§ 54.1303   Calculation of the rural growth factor.

   (a) The Rural Growth Factor (RGF) is equal to the sum of the annual
   percentage change in the United States Department of Commerce's Gross
   Domestic Product—Chained Price Index (GPD-CPI) plus the percentage
   change in the total number of rural incumbent local exchange carrier
   working loops during the calendar year preceding the July 31st filing
   submitted pursuant to § 54.1305. The percentage change in total rural
   incumbent local exchange carrier working loops shall be based upon the
   difference between the total number of rural incumbent local exchange
   carrier working loops on December 31 of the calendar year preceding the
   July 31st filing and the total number of rural incumbent local exchange
   carrier working loops on December 31 of the second calendar year
   preceding that filing, both determined by the company's submissions
   pursuant to § 54.1305. Loops acquired by rural incumbent local exchange
   carriers shall not be included in the RGF calculation.

   (b) Beginning July 31, 2012, pursuant to § 54.1301(a), the calculation
   of the Rural Growth Factor shall not include price cap carrier working
   loops and rate-of-return local exchange carrier working loops of
   companies that were affiliated with price cap carriers during the
   calendar year preceding the July 31st filing submitted pursuant to
   § 54.1305.

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