Goto Section: 54.306 | 54.308 | Table of Contents
FCC 54.307
Revised as of September 1, 2021
Goto Year:2020 |
2022
§ 54.307 Support to a competitive eligible telecommunications carrier.
(a) Calculation of support. A competitive eligible telecommunications
carrier shall receive universal service support to the extent that the
competitive eligible telecommunications carrier captures the subscriber
lines of an incumbent local exchange carrier (LEC) or serves new
subscriber lines in the incumbent LEC's service area.
(1) A competitive eligible telecommunications carrier serving loops in
the service area of a rural incumbent local exchange carrier, as that
term is defined in § 54.5 of this chapter, shall receive support for
each line it serves in a particular service area based on the support
the incumbent LEC would receive for each such line, disaggregated by
cost zone if disaggregation zones have been established within the
service area pursuant to § 54.315 of this subpart. A competitive
eligible telecommunications carrier serving loops in the service area
of a non-rural incumbent local exchange carrier shall receive support
for each line it serves in a particular wire center based on the
support the incumbent LEC would receive for each such line. A
competitive eligible telecommunications carrier serving loops in the
service area of a rate-of-return carrier shall be eligible to receive
Interstate Common Line Support for each line it serves in the service
area in accordance with the formula in § 54.901.
(2) A competitive eligible telecommunications carrier that uses
switching purchased as unbundled network elements pursuant to § 51.307
of this chapter to provide the supported services shall receive the
lesser of the unbundled network element price for switching or the
per-line DEM support of the incumbent LEC, if any. A competitive
eligible telecommunications carrier that uses loops purchased as
unbundled network elements pursuant to § 51.307 of this chapter to
provide the supported services shall receive the lesser of the
unbundled network element price for the loop or the incumbent LEC's
per-line payment from the high-cost loop support, LTS, and Interstate
Common Line Support mechanisms, if any. The incumbent LEC providing
nondiscriminatory access to unbundled network elements to such
competitive eligible telecommunications carrier shall receive the
difference between the level of universal service support provided to
the competitive eligible telecommunications carrier and the
per-customer level of support that the incumbent LEC would have
received.
(3) A competitive eligible telecommunications carrier that provides the
supported services using neither unbundled network elements purchased
pursuant to § 51.307 of this chapter nor wholesale service purchased
pursuant to section 251(c)(4) of the Act will receive the full amount
of universal service support that the incumbent LEC would have received
for that customer.
(b) In order to receive support pursuant to this subpart, a competitive
eligible telecommunications carrier must report to the Administrator
the number of working loops it serves in a service area pursuant to the
schedule set forth in paragraph (c) of this section. For a competitive
eligible telecommunications carrier serving loops in the service area
of a rural incumbent local exchange carrier, as that term is defined in
§ 54.5, the carrier must report, by customer class, the number of
working loops it serves in the service area, disaggregated by cost zone
if disaggregation zones have been established within the service area
pursuant to § 54.315. For a competitive eligible telecommunications
carrier serving loops in the service area of a non-rural telephone
company, the carrier must report the number of working loops it serves
in the service area, by customer class if the non-rural telephone
company receives Interstate Common Line Support pursuant to § 54.901 and
by disaggregation zone if disaggregation zones have been established
within the service area pursuant to § 54.315 of this subpart, and the
number of working loops it serves in each wire center in the service
area. For universal service support purposes, working loops are defined
as the number of working Exchange Line C&WF loops used jointly for
exchange and message telecommunications service, including C&WF
subscriber lines associated with pay telephones in C&WF Category 1, but
excluding WATS closed end access and TWX service. Competitive eligible
telecommunications carriers providing mobile wireless service in an
incumbent LEC's service area shall use the customer's billing address
for purposes of identifying the service location of a mobile wireless
customer in a service area.
(c) A competitive eligible telecommunications carrier must submit the
data required pursuant to paragraph (b) of this section according to
the schedule.
(1) No later than July 31st of each year, submit data as of December
31st of the previous calendar year;
(2) No later than September 30th of each year, submit data as of March
31st of the existing calendar year;
(3) No later than December 30th of each year, submit data as of June
30th of the existing calendar year;
(4) No later than March 30th of each year, submit data as of September
30th of the previous calendar year.
(d) Newly designated eligible telecommunications carriers.
Notwithstanding the deadlines in paragraph (c) of this section, a
carrier shall be eligible to receive support as of the effective date
of its designation as an eligible telecommunications carrier under
section 214(e)(2) or (e)(6), provided that it submits the data required
pursuant to paragraph (b) of this section within 60 days of that
effective date. Thereafter, the eligible telecommunications carrier
must submit the data required in paragraph (b) of this section pursuant
to the schedule in paragraph (c) of this section.
(e) Support Beginning January 1, 2012. Competitive eligible
telecommunications carriers will, beginning January 1, 2012, receive
support based on the methodology described in this paragraph and not
based on paragraph (a) of this section.
(1) Baseline Support Amount. Each competitive eligible
telecommunication carrier will have a “baseline support amount” equal
to its total 2011 support in a given study area, or an amount equal to
$3,000 times the number of reported lines for 2011, whichever is lower.
Each competitive eligible telecommunications carrier will have a
“monthly baseline support amount” equal to its baseline support amount
divided by twelve.
(i) “Total 2011 support” is the amount of support disbursed to a
competitive eligible telecommunication carrier for 2011, without regard
to prior period adjustments related to years other than 2011 and as
determined by the Administrator on January 31, 2012.
(ii) For the purpose of calculating the $3,000 per line limit, the
average of lines reported by a competitive eligible telecommunication
carrier pursuant to line count filings required for December 31, 2010,
and December 31, 2011 shall be used. The $3,000 per line limit shall be
applied to support amounts determined for each incumbent study area
served by the competitive eligible telecommunications carrier.
(2) Monthly support amounts. Competitive eligible telecommunications
carriers shall receive the following support amounts, except as
provided in paragraphs (e)(3) through (7) of this section.
(i) From January 1, 2012, to June 30, 2012, each competitive eligible
telecommunications carrier shall receive its monthly baseline support
amount each month.
(ii) From July 1, 2012 to June 30, 2013, each competitive eligible
telecommunications carrier shall receive 80 percent of its monthly
baseline support amount each month.
(iii) Beginning July 1, 2013, each competitive eligible
telecommunications carrier shall receive 60 percent of its monthly
baseline support amount each month.
(3) Delayed Phase Down for Remote Areas in Alaska. Certain competitive
eligible telecommunications carriers serving remote areas in Alaska
shall have their support phased down on a later schedule than that
described in paragraph (e)(2) of this section.
(i) Remote Areas in Alaska. For the purpose of this paragraph, “remote
areas in Alaska” includes all of Alaska except;
(A) The ACS-Anchorage incumbent study area;
(B) The ACS-Juneau incumbent study area;
(C) The fairbankszone1 disaggregation zone in the ACS-Fairbanks
incumbent study area; and
(D) The Chugiak 1 and 2 and Eagle River 1 and 2 disaggregation zones of
the Matunuska Telephone Association incumbent study area.
(ii) Carriers Subject to Delayed Phase Down. A competitive eligible
telecommunications carrier shall be subject to the delayed phase down
described in paragraph (e)(3) of this section to the extent that it
serves remote areas in Alaska, and it certified that it served covered
locations in its September 30, 2011, filing of line counts with the
Administrator. To the extent a competitive eligible telecommunications
carrier serving Alaska is not subject to the delayed phase down, it
will be subject to the phase down of support on the schedule described
in paragraph (e)(2) of this section.
(iii) Baseline for Delayed Phase Down. For purpose of the delayed phase
down for remote areas in Alaska, the baseline amount for each
competitive eligible telecommunications carrier subject to the delayed
phase down shall be the annualized monthly support amount received for
June 2014 or the last full month prior to the implementation of
Mobility Fund Phase II, whichever is later.
(iv) Monthly Support Amounts. Competitive eligible telecommunications
carriers subject to the delayed phase down for remote areas in Alaska
shall receive the following support amounts, except as provided in
paragraphs (e)(4) through (e)(6) of this section.
(A) From July 1, 2014 to June 30, 2015, each competitive eligible
telecommunications carrier shall receive 80 percent of its monthly
baseline support amount each month.
(B) From July 1, 2015, to June 30, 2016, each competitive eligible
telecommunications carrier shall receive 60 percent of its monthly
baseline support amount each month.
(C) From July 1, 2016, to June 30, 2017, each competitive eligible
telecommunications carrier shall receive 40 percent of its monthly
baseline support amount each month.
(D) From July 1, 2017, to June 30, 2018, each competitive eligible
telecommunications carrier shall receive 20 percent of its monthly
baseline support amount each month.
(E) Beginning July 1, 2018, no competitive eligible telecommunications
carrier serving remote areas in Alaska shall receive universal service
support pursuant to this section.
(v) Interim Support for Remote Areas in Alaska. From January 1, 2012,
until June 30, 2014 or the last full month prior to the implementation
of Mobility Fund Phase II, whichever is later, competitive eligible
telecommunications carriers subject to the delayed phase down for
remote areas in Alaska shall continue to receive the support, as
calculated by the Administrator, that each competitive
telecommunications carrier would have received under the frozen
per-line support amount as of December 31, 2011 capped at $3,000 per
year, provided that the total amount of support for all such
competitive eligible telecommunications carriers shall be capped
pursuant to paragraph (e)(3)(v)(A) of this section.
(A) Cap Amount. The total amount of support available on an annual
basis for competitive eligible telecommunications carriers subject to
the delayed phase down for remote areas in Alaska shall be equal to the
sum of “total 2011 support,” as defined in paragraph (e)(1)(i) of this
section, received by all competitive eligible telecommunications
carriers subject to the delayed phase down for serving remote areas in
Alaska.
(B) Reduction Factor. To effectuate the cap, the Administrator shall
apply a reduction factor as necessary to the support that would
otherwise be received by all competitive eligible telecommunications
carriers serving remote areas in Alaska subject to the delayed phase
down. The reduction factor will be calculated by dividing the total
amount of support available amount by the total support amount
calculated for those carriers in the absence of the cap.
(4) Further reductions. If a competitive eligible telecommunications
carrier ceases to provide services to high-cost areas it had previously
served, the Commission may reduce its baseline support amount.
(5) Eligibility for interim support before 5G Fund Phase I auction.
Beginning the first day of the month following the effective date of
the Report and Order, FCC 20-150, a competitive eligible
telecommunications carrier that receives support pursuant to paragraph
(a) or (e)(2) of this section shall no longer receive such support and
shall instead receive support as described in this paragraph.
(i) A competitive eligible telecommunications carrier that is not a
mobile competitive eligible telecommunications carrier, as that term is
defined in § 54.5, shall no longer receive monthly baseline support.
(ii) Until the first day of the month following the release of a public
notice by the Office of Economics and Analytics and Wireline
Competition Bureau announcing the final areas eligible for support in
the 5G Fund Phase I auction:
(A) A mobile competitive eligible telecommunications carrier that
receives support pursuant to paragraph (a) of this section shall
receive “monthly baseline support” in an amount equal to one-twelfth (
1⁄12 ) of its total support received for the preceding 12-month period.
(B) A mobile competitive eligible telecommunications carrier that
receives support pursuant to paragraph (e)(2) of this section shall
receive support at the same level described in paragraph (e)(2)(iii) of
this section.
(iii) Beginning the first day of the month following the release of a
public notice by the Office of Economics and Analytics and Wireline
Competition Bureau announcing the final areas eligible for support in
the 5G Fund Phase I auction and until the first day of the month
following release of a public notice announcing the close of the 5G
Fund Phase I auction, a mobile competitive eligible telecommunications
carrier that receives support pursuant to paragraph (e)(5)(ii) of this
section for any such eligible area shall receive an adjusted,
disaggregated amount of monthly support for that area, which shall be
calculated by multiplying the monthly support level described in
paragraph (e)(5)(ii) of this section by the areal percentage of the
eligible portion of the competitive eligible telecommunications
carrier's service area, weighted by applying the 5G Fund adjustment
factor methodology and values adopted by the Office of Economics and
Analytics and Wireline Competition Bureau and announced in a public
notice.
(iv) Beginning the first day of the month following the release of a
public notice by the Office of Economics and Analytics and Wireline
Competition Bureau announcing the final areas eligible for support in
the 5G Fund Phase I auction, a mobile competitive eligible
telecommunications carrier that receives support pursuant paragraph
(e)(5)(ii) of this section for any ineligible area shall receive an
adjusted, disaggregated amount of monthly support for that area, which
shall be calculated by multiplying the monthly support level described
in paragraph (e)(5)(ii) of this section by the areal percentage of the
ineligible portion of the competitive eligible telecommunications
carrier's service area, weighted by applying the 5G Fund adjustment
factor methodology and values adopted by the Office of Economics and
Analytics and Wireline Competition Bureau and announced in a public
notice, and reduced as follows:
(A) For the first 12 months, each mobile competitive eligible
telecommunications carrier shall receive monthly support that is
two-thirds ( 2⁄3 ) of the level described in paragraph (e)(5)(iv) of
this section for the ineligible area.
(B) For 12 months starting the first day of the month following the
period described in paragraph (e)(5)(iv)(A) of this section, each
mobile competitive eligible telecommunications carrier shall receive
monthly support that is one-third ( 1⁄3 ) of the level described in
paragraphs (e)(5)(iv) of this section for the ineligible area.
(C) Following the period described in paragraph (e)(5)(iv)(B) of this
section, no mobile competitive eligible telecommunications carrier
shall receive monthly support for any ineligible area pursuant to this
section.
(6) Eligibility for support after 5G Fund Phase I auction. (i)
Notwithstanding the schedule described in paragraph (e)(5)(iii) of this
section, a mobile competitive eligible telecommunications carrier that
receives monthly support pursuant to paragraph (e)(5)(iii) of this
section and is a winning bidder in the 5G Fund Phase I auction shall
continue to receive support at the same level it was receiving support
for such area at the time of the release of a public notice announcing
the close of the 5G Fund Phase I auction until such time as the Office
of Economics and Analytics and Wireline Competition Bureau determine
whether or not to authorize the carrier to receive 5G Fund Phase I
support.
(A) Upon the Office of Economics and Analytics and Wireline Competition
Bureau's release of a public notice approving a mobile competitive
eligible telecommunications carrier's application for support submitted
pursuant to § 54.1014(b) and authorizing the carrier to receive 5G Fund
Phase I support, the carrier shall no longer receive support at the
level of monthly support described in paragraph (e)(5)(iii) of this
section for such area. Thereafter, the carrier shall receive monthly
support in the amount of its 5G Fund Phase I winning bid pursuant to
§ 54.1017, provided that the Administrator shall decrease the amount of
the carrier's support to the extent necessary to account for any
support the carrier received during the period between the close of the
5G Fund Phase I auction and the release of the public notice
authorizing the carrier to receive 5G Fund Phase I support.
(B) A mobile competitive eligible telecommunications carrier that is a
winning bidder in the 5G Fund Phase I auction but is not subsequently
authorized to receive 5G Fund Phase I support shall no longer receive
support at the level of monthly support described in paragraph
(e)(5)(iii) of this section for such area following the determination
not to authorize the carrier for 5G Fund Phase I support. Thereafter,
the carrier shall receive monthly support as set forth in paragraph
(e)(6)(iv) of this section for such area, provided that the
Administrator shall decrease the amount of the carrier's support to the
extent necessary to account for any support the carrier received during
the period between the close of the 5G Fund Phase I auction and the
Office of Economics and Analytics and Wireline Competition Bureau's
authorization determination.
(ii) A mobile competitive eligible telecommunications carrier that does
not receive monthly support pursuant to this section and is a winning
bidder in the 5G Fund Phase I auction shall receive monthly support
pursuant to § 54.1017.
(iii) A mobile eligible telecommunications carrier that receives
monthly support pursuant to paragraph (e)(5)(iii) of this section for
an area for which support is not won in the 5G Fund Phase I auction
shall continue to receive support at the level of monthly support
described in paragraph (e)(5)(iii) of this section provided that it is
the carrier receiving the minimum level of sustainable support for the
area, but for no more than 60 months from the first day of the month
following the release of a public notice by the Office of Economics and
Analytics and Wireline Competition Bureau announcing the close of the
5G Fund Phase I auction. The “minimum level of sustainable support” is
the lowest monthly support received by a mobile competitive eligible
telecommunications carrier for the area that has deployed the highest
level of technology (e.g., 5G) within the state encompassing the area.
(iv) All other mobile competitive eligible telecommunications carriers
that receive monthly support pursuant to paragraph (e)(5)(iii) of this
section for eligible areas shall instead receive the following monthly
support amounts for such areas:
(A) For 12 months starting the first day of the month following release
of a public notice announcing the close of the 5G Fund Phase I auction,
each mobile competitive eligible telecommunications carrier shall
receive monthly support that is two-thirds ( 2⁄3 ) of the level
described in paragraph (e)(5)(iii) of this section for the area.
(B) For 12 months starting the month following the period described in
paragraph (e)(6)(iv)(A) of this section, each mobile competitive
eligible telecommunications carrier shall receive monthly support that
is one-third ( 1⁄3 ) of the level described in paragraph (e)(5)(iii) of
this section for the area.
(C) Following the period described in paragraph (e)(6)(iv)(B) of this
section, no mobile competitive eligible telecommunications carrier
shall receive monthly support for the area pursuant to this section.
(7) Eligibility for support after 5G Fund Phase II auction. (i)
Notwithstanding the schedule described in paragraphs (e)(6)(iii) or
(iv) of this section, a mobile competitive eligible telecommunications
carrier that receives monthly support pursuant to paragraphs
(e)(6)(iii) or (iv) of this section, as applicable, and is a winning
bidder in the 5G Fund Phase II auction shall receive support at the
same level it was receiving support for such area at the time of the
release of a public notice announcing the close of the 5G Fund Phase II
auction until such time as the Office of Economics and Analytics and
Wireline Competition Bureau determine whether or not to authorize the
carrier to receive 5G Fund Phase II support.
(A) Upon the Office of Economics and Analytics and Wireline Competition
Bureau's release of a public notice approving a mobile competitive
eligible telecommunications carrier's application for support submitted
pursuant to § 54.1014(b) and authorizing the carrier to receive 5G Fund
Phase II support, the carrier shall no longer receive support at the
level of monthly support pursuant to this section for such area.
Thereafter, the carrier shall receive monthly support in the amount of
its 5G Fund Phase II winning bid pursuant to § 54.1017, provided that
the Administrator shall decrease the amount of the carrier's support to
the extent necessary to account for any support the carrier received
during the period between the close of the 5G Fund Phase II auction and
the release of the public notice authorizing the carrier to receive 5G
Fund Phase II support.
(B) A mobile competitive eligible telecommunications carrier that is a
winning bidder in the 5G Fund Phase II auction but is not subsequently
authorized to receive 5G Fund Phase II support shall no longer receive
support at the level of monthly support pursuant to paragraph
(e)(6)(iii) or (iv) of this section for such area, as applicable,
following the determination not to authorize the carrier for 5G Fund
Phase II support. Thereafter, the carrier shall receive monthly support
as set forth in paragraphs (e)(7)(iv) or (v) of this section for such
area, as applicable, provided that the Administrator shall decrease the
amount of the carrier's support to the extent necessary to account for
any support received during the period between the close of the 5G Fund
Phase II auction and the Office of Economics and Analytics and Wireline
Competition Bureau's authorization determination.
(ii) A mobile competitive eligible telecommunications carrier that does
not receive monthly support pursuant to this section and is a winning
bidder in the 5G Fund Phase II auction shall receive monthly support
pursuant to § 54.1017.
(iii) A mobile competitive eligible telecommunications carrier that
receives monthly support pursuant to paragraph (e)(6)(iii) of this
section for an area for which support is not won in the 5G Fund Phase
II auction shall continue to receive support for that area as described
in paragraph (e)(6)(iii) of this section.
(iv) A mobile competitive eligible telecommunications carrier that
receives monthly support pursuant to paragraph (e)(6)(iii) of this
section for an area for which support is won in the 5G Fund Phase II
auction and for which the carrier is not the winning bidder shall
receive the following monthly support amounts for such areas:
(A) For 12 months starting the first day of the month following release
of a public notice announcing the close of the 5G Fund Phase II
auction, the mobile competitive eligible telecommunications carrier
shall receive monthly support that is two-thirds ( 2⁄3 ) of the level
described in paragraph (e)(6)(iii) of this section for the area.
(B) For 12 months starting the month following the period described in
paragraph (e)(7)(iv)(A) of this section, the mobile competitive
eligible telecommunications carrier shall receive monthly support that
is one-third ( 1⁄3 ) of the level described in paragraph (e)(6)(iii) of
this section for the area.
(C) Following the period described in paragraph (e)(7)(iv)(B) of this
section, the mobile competitive eligible telecommunications carrier
shall not receive monthly support for the area pursuant to this
section.
(v) All other mobile competitive eligible telecommunications carriers
that receive monthly support pursuant to paragraph (e)(6)(iv) of this
section for an area shall continue to receive support for the area
pursuant to that paragraph.
(8) Line Count Filings. Competitive eligible telecommunications
carriers, except those subject to the delayed phase down described in
paragraph (e)(3) of this section, shall no longer be required to file
line counts beginning January 1, 2012. Competitive eligible
telecommunications carriers subject to the delayed phase down described
in paragraph (e)(3) of this section shall no longer be required to file
line counts beginning July 1, 2014, or the date after the first line
count filing following the implementation of Mobility Fund Phase II,
whichever is later.
(9) Eligibility for support after Connect America Phase II auction.
Starting the first day of the month following the first authorization
of Connect America Phase II auction support nationwide, fixed
competitive eligible telecommunications carriers shall have the option
of receiving support pursuant to paragraph (e)(2)(iii) of this section
as described in the following paragraphs (e)(8)(i) through (iv):
(i) For 12 months following the first authorization of Connect America
Phase II auction support nationwide, each fixed competitive eligible
telecommunications carrier shall receive two-thirds ( 2⁄3 ) of the
carrier's total support pursuant to paragraph (e)(2)(iii) of this
section.
(ii) For 12 months starting the month following the period described in
paragraph (e)(8)(i) of this section, each fixed competitive eligible
telecommunications carrier shall receive one-third ( 1⁄3 ) of the
carrier's total support pursuant to paragraph (e)(2)(iii) of this
section.
(iii) Following the period described in paragraph (e)(8)(ii) of this
section, no fixed competitive eligible telecommunications carrier shall
receive any support pursuant to paragraph (e)(2)(iii) of this section.
(iv) Notwithstanding the foregoing schedule, the phase-down of support
below the level described in paragraph (e)(2)(iii) of this section
shall be subject to the restrictions in Consolidated Appropriations
Act, 2016, Public Law 114-113, Div. E, Title VI, section 631, 129 Stat.
2242, 2470 (2015), unless and until such restrictions are no longer in
effect.
[ 62 FR 32948 , June 17, 1997, as amended at 63 FR 2128 , Jan. 13, 1998;
64 FR 67431 , Dec. 1, 1999; 65 FR 26516 , May 8, 2000; 66 FR 30087 , June
5, 2001; 66 FR 59726 , Nov. 30, 2001; 68 FR 31623 , May 28, 2003; 69 FR 34602 , June 22, 2004; 70 FR 29979 , May 25, 2005; 76 FR 73871 , Nov. 29,
2011; 77 FR 14302 , Mar. 9, 2012; 77 FR 30913 , May 24, 2012; 77 FR 52618 , Aug. 30, 2012; 82 FR 15449 , Mar. 28, 2017; 84 FR 8623 , Mar. 11,
2019; 85 FR 75817 , Nov. 25, 2020]
Goto Section: 54.306 | 54.308
Goto Year: 2020 |
2022
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