FCC Web Documents citing 36.631
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- calculating a carrier's average cost per loop are specified in 47 C.F.R 36.621(a). See e.g., supra. n. 8; infra n. 19. A carrier's entitlement to high cost loop support is determined by the extent to which its cost per loop exceeds the nationwide average cost per loop and by the number of loops it provides. See 47 C.F.R 36.631. See e.g., National Exchange Carrier Association, Inc., Proposed Modifications to the 1998-99 Interstate Average Schedule Formulas, Order on Reconsideration and Order, DA 97-2710, 13 FCC Rcd 10116, 31-32 (1997); National Exchange Carrier Association, Inc., Proposed Modifications to the 1998-99 Interstate Average Schedule Formulas, Order, DA 98-1297, 13 FCC Rcd 17351, 56-57 (1998); National Exchange Carrier Association, Inc. Proposed Modifications to
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- Mescalero Apache tribal households in Mescalero, New Mexico owning telephones is approximately 46 percent. See New Mexico Certification Order at 2. See Letter from James A. Casey, Attorney for Mescalero Apache Telecom, Inc. to Magalie Roman Salas, FCC, dated January 17, 2001, at 2. filed as an enclosure a Letter from, dated January 17, 2001, at See 47 C.F.R. 36.631. See 47 C.F.R. 36.611. 47 C.F.R. 36.601(c). In the First Report and Order, the Commission retained the indexed cap on the growth of the existing high-cost fund. First Report and Order, 12 FCC Rcd at 8940. The indexed cap, originally adopted in 1993, limits the maximum growth in the total amount of support available from the high-cost fund
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- hold-harmless support for exchanges transferred to non-rural carriers will be phased down over the same time period as the seller's support would have been phased down. Id. at para. 22. The Commission also sought comment on whether to continue applying section 54.305 to transfers of telephone exchanges between non-rural carriers following phase-down. Id. at paras. 23-24. See 47 C.F.R. 36.631. See 47 C.F.R. 36.612 See id. The Reservation spans the Gila, Graham, and Pinal counties in southeastern Arizona. Petition at 4. On November 8, 1996, the Accounting and Audits Division granted San Carlos a study area waiver associated with San Carlos's purchase of an exchange previously operated by Qwest Corporation (Qwest) (formerly U S WEST Communications, Inc.). See San
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- a company-specific basis for operational purposes, may impose additional and unnecessary administrative and accounting burdens on the petitioners and NECA. See EagleNet Study Area Waiver Order, 9 FCC Rcd at 1009. For example, the jurisdictional separations rules permit carriers operating in smaller study areas to recover more of their loop costs from the interstate jurisdiction. See, e.g., 47 C.F.R. 36.631. See Petition at 4-5, Attachment 1. (continued....) Federal Communications Commission DA 01-659 Federal Communications Commission DA 01-659 @ @& 0 0 0 0 0 0 -
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- loop formula in effect at that time. Safety valve support will be up to 50 percent of the difference between the index year expense adjustment and the subsequent year expense adjustment. In no year, however, may a carrier receive safety valve support greater than the difference between a carrier's uncapped study area loop cost expense adjustment calculated pursuant to section 36.631 and transferred support amounts available to the acquired exchange(s) under section 54.305(a). Support in study areas with CETC. NECA proposes that, upon entry of a CETC into a rural average schedule company's study area, NECA will begin providing updated loop counts for that company to USAC on a quarterly basis pursuant to Commission rules. In addition, NECA proposes that, at
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- declare that no competitive eligible telecommunications carrier (CETC) that provides supported services using loops purchased as unbundled network elements (UNEs) pursuant to Section 51.307 of the Commission's rules shall receive high-cost loop support under Sections 36.601, et seq., and 54.307, unless the UNE price for the loop exceeds 115 percent of the national average loop cost calculated pursuant to Section 36.631. ACS-F also asks the Commission to declare that no CETC whose loop costs are below this threshold will receive high-cost loop support, and to order the Universal Service Administrative Company to suspend high-cost loop support payments to any CETC that does not meet this requirement. Pursuant to sections 1.415 and 1.419 of the Commission's rules, 47 C.F.R. 1.415, 1.419, interested
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- incumbent local exchange carrier portion of nationwide loop costs expense adjustment. Section 36.603(a) provides computations that expired on December 31, 2001 and on December 31, 2002. Because these rules are no longer in effect, staff recommends that the first three sentences of section 36.603(a) be deleted. WCB staff also recommends removal of the phrase ``Beginning January 1, 1998'' from sections 36.631(c) and (d) as such specification is no longer necessary. Finally, section 36.641 provides a transitional expense adjustment. Because the subject transitional period was from 1988 through 1992, these rules are no longer in effect and the period after the transition (i.e., beginning January 1, 1993) is governed by section 36.631, WCB staff recommends deletion of section 36.641. Part 42 -
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- support is intended.'' To implement this statutory requirement, the Commission has adopted annual certification and data filing requirements. Safety valve support (SVS) provides additional support to rural carriers that acquire high-cost exchanges and make post-transaction investments to enhance network infrastructure. SVS is available only to rural carriers that otherwise qualify for high-cost loop support for the acquired exchanges under section 36.631 of the Commission's rules. Acquiring carriers establish an index year, consisting of the first four full calendar quarters following the closing date of the acquisition. Carriers then file expense adjustments for the acquired exchange through cost data submitted in accordance with section 36.611 or section 36.612 of the Commission's rules. Under section 36.611 of the Commission's rules, all incumbent local
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- 32.9000, Glossary of terms) minus the cost of removal, i.e., the cost of demolishing, removing, or otherwise disposing of telecommunications plant and recovering the salvage (47 C.F.R. 32.9000, Glossary of terms). See Petition at 4. 47 C.F.R. Part 36, Subpart F - Universal Service Fund. 47 C.F.R. 36.621. See 47 C.F.R. 36.622, 36.601(c). See 47 C.F.R. 36.631. See Petition at 1. See Comment Sought on Virgin Islands Telephone Corporation Petition for Waiver of Accounting and High-Cost Universal Service Support Rules, WC Docket No. 08-326, Public Notice, 23 FCC Rcd 17830 (Wireline Comp. Bur. 2008). No comments were filed. See Petition at 1. See Letter from Dana R. Shaffer, Chief, Wireline Competition Bureau, to Scott Barash, Universal Service
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- financial reports with the Rural Utilities Service may instead file a copy of its report to the Rural Utilities Service. 3. Delete section 54.315. 4. Amend section 54.318 by revising paragraph (d) as follows: 54.318 High-cost support; limitations on high-cost support. *** (d) For purposes of this section, high-cost support is defined as the support available pursuant to 36.631 of this chapter and frozen high-cost support provided to price cap carriers to the extent it is based on support previously provided pursuant to sections 36.631 or 54.309 of this chapter. 5. Amend section 54.903 by revising subparagraph (a)(2) as follows: 54.903 Obligations of rate-of-return carriers and the Administrator. *** (a) *** (2) A rate-of-return carrier may submit the
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- The Rural Task Force noted, however, that the safety valve example was used illustratively (i.e., it does not represent a consensus of the Rural Task Force members). In Appendix D, the Rural Task Force proposed that safety valve support should be based on the difference between an ``index year expense adjustment'' calculated for the acquired exchanges in accordance with section 36.631 of the Commission's rules and subsequent year expense adjustments. The ``expense adjustment'' formulas included in section 36.631 of the Commission's rules are used to calculate high-cost loop support for rural carriers. A carrier's expense adjustment is based on the relationship between a carrier's study area average unseparated loop cost per working loop and the national average cost per loop. The
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- safety net additive. (a) Safety net additive support A rural incumbent local exchange carrier shall receive safety net additive support if it satisfies the conditions set forth in paragraph (c) of this section. Safety net additive support is support available to rural telephone companies, as conditioned in paragraph (c) of this section, in addition to support calculated pursuant to Section 36.631. Safety net additive support shall not be available to rural telephone companies for exchange(s) that are subject to Section 54.305 of this chapter. (b) Calculation of safety net additive support Safety net additive support is equal to the amount of capped support calculated pursuant to this Subpart F in the qualifying year minus the amount of support in the year
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- proportion of plant allocated to the various plant categories can change separations results if the plant categories involved are apportioned between the federal and state jurisdictions on the basis of different factors. Recommended Decision, Jurisdictional Separations Reform and Referral to the Federal-State Joint Board CC Docket No. 80-286 FCC 00J-2 (rel. July 21, 2000). These provisions include 47 C.F.R. 36.631(a), 36.631(b), and 36.641(b). GSA Comments at 7. GSA Comments at 6; USTA Comments at 15. Policy and Rules Concerning the Interstate, Interexchange Marketplace, Second Order on Reconsideration, 14 FCC Rcd 6004 (1999). The U.S. Court of Appeals for the D.C. Circuit has upheld the Commission's decision to mandate detariffing for domestic interstate long distance service. See MCI WorldCom, Inc. v
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- The Rural Task Force noted, however, that the safety valve example was used illustratively (i.e., it does not represent a consensus of the Rural Task Force members). In Appendix D, the Rural Task Force proposed that safety valve support should be based on the difference between an ``index year expense adjustment'' calculated for the acquired exchanges in accordance with section 36.631 of the Commission's rules and subsequent year expense adjustments. The ``expense adjustment'' formulas included in section 36.631 of the Commission's rules are used to calculate high-cost loop support for rural carriers. A carrier's expense adjustment is based on the relationship between a carrier's study area average unseparated loop cost per working loop and the national average cost per loop. The
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- separations is a procedure that determines what proportion of jointly used plant should be allocated to the interstate and intrastate jurisdictions for ratemaking purposes"). 47 C.F.R. Part 69. See also 47 C.F.R. Part 61 (Commission rules prescribing the procedures for filing and updating interstate tariffs). See 47 C.F.R. 69.605. See 47 C.F.R. 36.601 et seq. 47 C.F.R. 36.631(c), (d). See 47 C.F.R. 36.611 et seq. See Petition at 5. 47 C.F.R. 32.27(a) - (c). 47 C.F.R. 32.27(a) - (c). See Letter from Gina Harrison, NECA, to Magalie Roman Salas, Secretary, FCC, dated March 10, 1999 (NECA Mar. 10, 1999 ex parte). As NECA explained in its ex parte, the higher per-loop costs result because high-cost
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- and decided expeditiously. Without such a limit, a proceeding could be initiated by a state or carrier, be noticed for comment, and then remain undecided for years. For example, the Vermont Public Service Board filed a petition for waiver of existing universal service rules in September of 1993. The Commission never acted on that petition. In re Waiver of Section 36.631 of the Commission's Rules Governing the Universal Service Fund, Docket No. AAD 93-103, public notice issued Oct. 15, 1993, 8 FCC Rcd. 7588. Formula-based federal support is provided to the states across a wide range of public policy, including transportation support, farm supports, and health care support. Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and Order,
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- and Eighteenth Order on Reconsideration filed by SBC Communications Inc. on January 3, 2000 is DENIED in part and DISMISSED AS MOOT in part. IT IS FURTHER ORDERED that, pursuant to section 4(i) of the Communications Act of 1934, as amended, 47 U.S.C. 154(i), and section 1.3 of the Commission's rules, 47 C.F.R. 1.3, the Petition for Waiver of Section 36.631 of the Commission's Rules Governing the Universal Service Fund, filed by the Vermont Department of Public Service and the Vermont Public Service Board, September 21, 1993, AAD 93-103, is DISMISSED AS MOOT. IT IS FURTHER ORDERED that the Commission's Consumer and Governmental Affairs Bureau, Reference Information Center, SHALL SEND a copy of this Order on Remand, Further Notice of Proposed
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- thus appear to be no longer applicable. We therefore propose to repeal these sections, as well as references to sections 36.154(d) through (f) found in section 36.154(c). We seek comment on these proposals. Subpart F - Universal Service Fund. The Bureau has recommended repeal of certain provisions in this subpart that have expired by their own terms. They include sections 36.631(a) and (b), which set forth regulations for calculating interstate expense adjustment until December 31, 1997, and section 36.641, addressing transitional expense adjustment, which is no longer applicable. We believe that these provisions are no longer necessary because they have expired by their own terms, and thus propose to repeal them. Finally, we propose to modify section 36.631(d) to specify that
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- Inc., Proposed 2002 Modification of Average Schedule Formulas, CC Docket No. 96-45, Order, 17 FCC Rcd 14236, 14237, para. 3 (Wir. Comp. Bur. 2002); Federal-State Joint Board on Universal Service, National Exchange Carrier Association, Inc. Proposed 2002 Modification of Average Schedule Formulas, CC Docket No. 96-45, Order, DA 02-3587 (Wir. Comp. Bur. rel. Dec. 27, 2002). See 47 C.F.R. 36.631. The terms ``rural carrier'' and ``rural incumbent LEC'' refer to incumbent LECs that meet the definition of a rural telephone company set forth in section 153(37) of the Act. 47 U.S.C. 153(37). Under this definition, rural telephone companies are incumbent LECs that either serve study areas with fewer than 100,000 access lines or meet one of three additional criteria.
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- conclude that referral to the Federal-State Joint Board on Separations was not necessary in this instance. Finally, we take this opportunity to correct certain typographical errors in Part 36 of our rules. We change the reference at the end of section 36.126(e)(2) from section 36.156 to section 36.155 and remove two references to ``@@Q02'' from 36.321(a). We also modify sections 36.631(a), (c) and (d) to correct typographical errors in the dates that these provisions became applicable. procedural issues Paperwork Reduction Act Analysis The decision herein has been analyzed with respect to the Paperwork Reduction Act of 1995, Pub. L. 104-13. This order merely modifies account references in Part 36 to conform to the Part 32 revisions adopted in the Phase 2
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- on a study area basis for the duration of the plan Avoid any impact on the fixed $650 million fund of interstate CALLS support: Amend 54.800 to redefine Price Cap LEC for the purpose of Subpart J of Part 54 as excluding carriers that elect price caps under this later plan Create predictable and stable High-Cost Loop Support (HCLS): Amend 36.631 to freeze HCLS on a per-line basis. Amend 36.603 to adjust this frozen per-line amount only for GDP-CPI, while continuing to apply the Rural Growth Factor to that portion of the fund that supports other rural carriers. All rural carriers remain eligible to receive safety net and safety valve support Retain the low-end adjustment to ensure a reasonable earnings opportunity:
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- on study area average costs. For rural companies with 200,000 or fewer lines, the high-cost loop support mechanism provides support at 65% of incremental costs above an amount equal to 115% of the national average unseparated loop cost. It also provides support at 75% of incremental costs above an amount equal to 150% of the national average. 47 C.F.R. 36.631(c). For companies with more than 200,000 lines, the high-cost loop support mechanism generally provides less support than for smaller companies, although many companies with more than 200,000 lines are ``non-rural'' companies and do not receive high-cost loop support. The program provides support at 10% of incremental costs above an amount equal to 115% of the national average unseparated loop cost.
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- incumbent local exchange carrier's index year expense adjustment and subsequent year loop cost expense adjustments for the acquired exchanges. Safety valve loop cost expense adjustments shall only be available to rural incumbent local exchange carriers that, in the absence of restrictions on high-cost loop support in 54.305(b), would qualify for high-cost loop support for the acquired exchanges under 36.631 of this chapter. (1) For carriers that buy or acquire telephone exchanges on or after January 10, 2005 from an unaffiliated carrier, the index year expense adjustment for the acquiring carrier's first year of operation shall equal the selling carrier's loop-related expense adjustment for the transferred exchanges for the 12-month period prior to the transfer of the exchanges. At the
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- 20, 2006 Ex Parte Letter). Under the Commission's NECA rules, each incumbent LEC must provide NECA (established pursuant to part 69 of the Commission's rules) with certain information listed by study area and certain information by wire center in order to allow determination of the study areas and wire centers that are entitled to an expense adjustment. 47 C.F.R. 36.631. For purposes of this proceeding, we use the names listed above as the names for the 11 switches and for the 11 wire centers. See GCI Opposition at Exh. E (providing a wire center map). As discussed below, we treat the area served by the Hope remote terminal as included in the South wire center service area. See Letter from
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- in material changes to the manner in which the high cost universal service support mechanism is administered. Moreover, LSS is needed to prevent double recovery of support by the local exchange carrier. We conclude that the LSS factor remains necessary in the public interest and retain this rule. Subpart F - Universal Service Fund. The Commission proposed to repeal sections 36.631(a) and (b) and 36.641 because these rules have expired on their own terms and are no longer applicable. Section 36.631(a) sunset on December 31, 1997, section 36.631(b) sunset on December 31, 1987, and the transitional provisions provided in section 36.641 expired beginning no later than January 1, 1998. No parties oppose our proposed changes. We therefore adopt language deleting sections
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- States, 3 (February 2010) (Telephone Subscribership Report). 4 See National Broadband Plan at 135. 5 The federal high-cost support mechanism includes five major components. High-cost loop support provides support for intrastate network costs to rural incumbent local exchange carriers (LECs) in service areas where the cost to provide service exceeds 115 percent of the national average. See 47 C.F.R. 36.631. Rural incumbent LECs may also receive support under two additional sub-mechanisms in limited circumstances. Carriers may qualify for additional support, i.e., safety net additive support, if they demonstrate significant investment in infrastructure. See 47 C.F.R. 36.605. Carriers may be eligible for additional support, i.e., safety value support, in instances where they acquire exchanges and invest in that infrastructure. See
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- 36.621(a)(4)(i) or (ii) then multiplied by 67%. For purposes of calculating universal service support payments in calendar year 2013, total corporate operations expense shall be limited to the lesser of 36.621(a)(4)(i) or (ii) then multiplied by 33%. Beginning January 1, 2014, Corporate Operations Expense shall no longer be eligible for purposes of calculating universal service payments. ***** Section 36.631 is amended by revising paragraphs (c)(1) and (c)(2) and by removing paragraph (d) as follows: 36.631 Expense adjustment. ***** (c) *** (1) Until December 31, 2011, sixty-five percent of the study area average unseparated loop cost per working loop as calculated pursuant to 36.622(b) in excess of 115 percent of the national average for this cost but not greater
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- the monthly per-loop amount computed according to paragraphs (a)(4)(iii)(A), (a)(4)(iii)(B), and (a)(4)(iii)(C) of this section shall be adjusted each year to reflect the annual percentage change in the United States Department of Commerce's Gross Domestic Product-Chained Price Index (GDP-CPI). (5) Study area unseparated loop cost may be limited annually pursuant to a schedule announced by the Wireline Competition Bureau. Amend 36.631 by revising the introductory text of paragraphs (c) and (d) to read as follows: 36.631 Expense adjustment. ***** (c) Beginning January 1, 1988, for study areas reporting 200,000 or fewer working loops pursuant to 36.611(h), the expense adjustment (additional interstate expense allocation) is equal to the sum of paragraphs (c)(1) through (2) of this section. * * * *
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- Membership on Rural Task Force, Public Notice, FCC 97J-1 (rel. Sept. 17, 1997). 12 The existing high-cost support mechanism provides increasing amounts of support based on the percentage by which a carrier's loop costs exceed the national average cost per loop, beginning with loop costs greater than 115 percent of the national average cost per loop. See 47 C.F.R. 36.631(c), (d); Thirteenth Order on Reconsideration, FCC 99-119 at para. 98. The existing mechanism provides support only for loop costs, while the new forward-looking mechanism for non-rural carriers provides support based on the estimated cost of all components of the network necessary to provide supported services. Federal Communications Commission FCC 99-204 5 inadequately served.13 In the First Report and Order, the
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- association shall no longer administer the Universal Service charge, including the direct billing to and collection of associated revenues on a monthly basis from interexchange carriers pursuant to 60.116 and the distribution of these revenues to qualified telephone companies based on their share of expenses assigned to the Universal Service Factor portion of the interstate allocation pursuant to 36.631. Such functions shall be assumed by the independent subsidiary of the association as provided in 69.613. Commencing on January 1, 1998, the billing and collection of universal service support for high cost areas shall be performed in a manner consistent with 54.709. (d) Upon the incorporation and commencement of operations by the association's independent subsidiary that, pursuant to
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- at 8952-94. 50 Universal Service Order, 12 FCC Rcd at 8952. In late February 1998, eligible telecommunications carriers began submitting to USAC requests for reimbursement for offering Lifeline service to low-income consumers. Federal Universal Service Programs Fund Size Projections & Contribution Base for Third Quarter 1998, filed by USAC, dated May 1, 1998, at 12. 51 See 47 C.F.R. 36.631 and 36.64. 13 country.47 We note that, pursuant to the 1996 Act, the Commission has taken significant action to implement the universal service provisions of the Act. At the present time, the rural, insular, and high cost telephone subscribers continue to receive high cost support at the same level that they have received for years. In addition, one of the
- http://transition.fcc.gov/Bureaus/Common_Carrier/Orders/1999/fcc99119.pdf http://transition.fcc.gov/Bureaus/Common_Carrier/Orders/1999/fcc99119.txt http://transition.fcc.gov/Bureaus/Common_Carrier/Orders/1999/fcc99119.wp
- to comment on the range proposed by the Joint Board in the absence of a finalized cost model.261 For that reason, we seek further comment on the specific cost benchmark that we should adopt, and we seek comment on whether the national benchmark should fall within the Joint Board's recommended range. Federal Communications Commission FCC 99-119 262 Pursuant to section 36.631 of the Commission's rules, the current high-cost mechanism provides greater levels of support for study areas reporting 200,000 or fewer working loops than for study areas reporting more than 200,000 working loops. See 47 C.F.R. 36.631(c), (d). 263 47 C.F.R. 36.631(d). Although the 1996 Act does not specifically define a non-rural carrier, it does define a rural telephone
- http://transition.fcc.gov/Bureaus/Common_Carrier/Orders/2000/fc00j4a.doc http://transition.fcc.gov/Bureaus/Common_Carrier/Orders/2000/fc00j4a.pdf http://transition.fcc.gov/Bureaus/Common_Carrier/Orders/2000/fc00j4a.txt
- of forward-looking costs. These reasons included the perceived administrative complexity of adapting the Part 36 Rules for calculating the High Cost Loop fund and Local Switching Support to the Synthesis Model, and the anticipated significant increase in high cost support that would result from such an analysis, which would be applied on a study area basis. See 47 C.F.R. Section 36.631. See 47 C.F.R. Section 54.303. See 47 C.F.R. Section 54.301. In addition to the cap on the growth of the HCL fund, there is a limitation on recovery of corporate operations expense and caps on universal service funds related to newly acquired exchanges. It is estimated that removal of the corporate operations expense limitation would increase the fund for rural
- http://transition.fcc.gov/Bureaus/Common_Carrier/Orders/2000/fcc00j4.doc http://transition.fcc.gov/Bureaus/Common_Carrier/Orders/2000/fcc00j4.pdf http://transition.fcc.gov/Bureaus/Common_Carrier/Orders/2000/fcc00j4.txt
- support reflecting ``meaningful investment'' in acquired access lines. The Rural Task Force provides an illustration of such a mechanism in Appendix D of its Recommendation. In Appendix D, the Rural Task Force defines ``meaningful investment'' for purposes of qualifying a rural carrier for ``safety valve'' support as the difference between the ``index year expense adjustment'' calculated in accordance with section 36.631 of the Commission's rules and subsequent year expense adjustments. The Rural Task Force's example also proposes to limit the total ``safety valve'' support available to all eligible study areas to no more than five percent of the indexed high-cost loop fund cap for rural carriers. We support the Rural Task Force's proposal for providing additional support to rural carriers that
- http://transition.fcc.gov/Reports/biennial2000report.doc http://transition.fcc.gov/Reports/biennial2000report.pdf http://transition.fcc.gov/Reports/biennial2000report.txt
- proportion of plant allocated to the various plant categories can change separations results if the plant categories involved are apportioned between the federal and state jurisdictions on the basis of different factors. Recommended Decision, Jurisdictional Separations Reform and Referral to the Federal-State Joint Board CC Docket No. 80-286 FCC 00J-2 (rel. July 21, 2000). These provisions include 47 C.F.R. 36.631(a), 36.631(b), and 36.641(b). MCI WorldCom, Inc. v FCC, 209 F.3d 132 (D.C. Cir. 2000). 47 U.S.C. 211. Section 211 also permits the Commission to require the filing of any other contracts. 47 U.S.C. 219. 47 U.S.C. 220. Only those carriers with annual operating expenses that equal or exceed the indexed revenue threshold defined in 32.9000 and
- http://www.fcc.gov/Bureaus/Common_Carrier/Comments/access_reform/samples/0155376.htm
- v. Pacific Bell (N.D.Cal. January 8, 1997). 101. ^101 Local Competition Order, 719. 102. ^102 In the Matter of American Telephone & Telegraph Company, Long Lines Department, 61 F.C.C.2d 587, 588 (1976). 103. ^103 Notice 27, 36-40. 104. ^104 Federal-State Joint Board on Universal Service, CC Docket No. 96-45, at 187-190 (rel. Nov. 8., 1996). 105. ^105 47 C.F.R. Part 36.631. 106. ^106 In the Eighth Circuit appeal of the Commissions Local Competition Order, several state commissions claim that interstate traffic is still only 8 percent of the total traffic. Joint Reply Brief for the State Commission Parties at 2, Iowa Utilities Board v. F.C.C., Nos. 96-3321, et al. (8^th Cir., Jan. 6, 1997). 107. ^107 Local Competition Order, 704-707. This
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- for Membership on Rural Task Force, Public Notice, FCC 97J-1 (rel. Sept. 17, 1997). The existing high-cost support mechanism provides increasing amounts of support based on the percentage by which a carrier's loop costs exceed the national average cost per loop, beginning with loop costs greater than 115 percent of the national average cost per loop. See 47 C.F.R. 36.631(c), (d); Thirteenth Order on Reconsideration, FCC 99-119 at para. 98. The existing mechanism provides support only for loop costs, while the new forward-looking mechanism for non-rural carriers provides support based on the estimated cost of all components of the network necessary to provide supported services. Thirteenth Order on Reconsideration, FCC 99-119 at paras. 91-92. First Report and Order, 12 FCC
- http://www.fcc.gov/Bureaus/Common_Carrier/Notices/2001/fcc01008.doc http://www.fcc.gov/Bureaus/Common_Carrier/Notices/2001/fcc01008.txt
- support reflecting ``meaningful investment'' in acquired access lines. The Rural Task Force provides an illustration of such a mechanism in Appendix D of its Recommendation. In Appendix D, the Rural Task Force defines ``meaningful investment'' for purposes of qualifying a rural carrier for ``safety valve'' support as the difference between the ``index year expense adjustment'' calculated in accordance with section 36.631 of the Commission's rules and subsequent year expense adjustments. The Rural Task Force's example also proposes to limit the total ``safety valve'' support available to all eligible study areas to no more than five percent of the indexed high-cost loop fund cap for rural carriers. We support the Rural Task Force's proposal for providing additional support to rural carriers that
- http://www.fcc.gov/Bureaus/Common_Carrier/Orders/1997/apb97253.pdf http://www.fcc.gov/Bureaus/Common_Carrier/Orders/1997/apb97253.txt http://www.fcc.gov/Bureaus/Common_Carrier/Orders/1997/apb97253.wp
- association shall no longer administer the Universal Service charge, including the direct billing to and collection of associated revenues on a monthly basis from interexchange carriers pursuant to 60.116 and the distribution of these revenues to qualified telephone companies based on their share of expenses assigned to the Universal Service Factor portion of the interstate allocation pursuant to 36.631. Such functions shall be assumed by the independent subsidiary of the association as provided in 69.613. Commencing on January 1, 1998, the billing and collection of universal service support for high cost areas shall be performed in a manner consistent with 54.709. (d) Upon the incorporation and commencement of operations by the association's independent subsidiary that, pursuant to
- http://www.fcc.gov/Bureaus/Common_Carrier/Orders/1998/fcc98120.pdf http://www.fcc.gov/Bureaus/Common_Carrier/Orders/1998/fcc98120.txt http://www.fcc.gov/Bureaus/Common_Carrier/Orders/1998/fcc98120.wp
- at 8952-94. 50 Universal Service Order, 12 FCC Rcd at 8952. In late February 1998, eligible telecommunications carriers began submitting to USAC requests for reimbursement for offering Lifeline service to low-income consumers. Federal Universal Service Programs Fund Size Projections & Contribution Base for Third Quarter 1998, filed by USAC, dated May 1, 1998, at 12. 51 See 47 C.F.R. 36.631 and 36.64. 13 country.47 We note that, pursuant to the 1996 Act, the Commission has taken significant action to implement the universal service provisions of the Act. At the present time, the rural, insular, and high cost telephone subscribers continue to receive high cost support at the same level that they have received for years. In addition, one of the
- http://www.fcc.gov/Bureaus/Common_Carrier/Orders/1999/fcc99119.pdf http://www.fcc.gov/Bureaus/Common_Carrier/Orders/1999/fcc99119.txt http://www.fcc.gov/Bureaus/Common_Carrier/Orders/1999/fcc99119.wp
- to comment on the range proposed by the Joint Board in the absence of a finalized cost model.261 For that reason, we seek further comment on the specific cost benchmark that we should adopt, and we seek comment on whether the national benchmark should fall within the Joint Board's recommended range. Federal Communications Commission FCC 99-119 262 Pursuant to section 36.631 of the Commission's rules, the current high-cost mechanism provides greater levels of support for study areas reporting 200,000 or fewer working loops than for study areas reporting more than 200,000 working loops. See 47 C.F.R. 36.631(c), (d). 263 47 C.F.R. 36.631(d). Although the 1996 Act does not specifically define a non-rural carrier, it does define a rural telephone
- http://www.fcc.gov/Bureaus/Common_Carrier/Orders/1999/fcc99396.doc http://www.fcc.gov/Bureaus/Common_Carrier/Orders/1999/fcc99396.txt
- the study-area level, rather than the wire center level. Targeting of interim hold-harmless support shall occur at the wire center level beginning in the third quarter of 2000. We also correct an oversight in the rules that we adopted in the High-Cost Methodology Order concerning the calculation of the expense adjustments for non-rural carriers. In that order, we amended section 36.631(d) of our rules so that the expense adjustment for study areas reporting more than 200,000 working loops would be calculated pursuant to the new forward-looking support mechanism or the interim hold-harmless provision, whichever is applicable, effective January 1, 2000. We inadvertently did not make a similar amendment to section 36.631(c) of our rules, which concerns study areas reporting 200,000 or
- http://www.fcc.gov/Bureaus/Common_Carrier/Orders/2000/da000588.doc
- Schedule Formulas, Order, DA 99-3021 (December 29, 1999). See National Exchange Carrier Association, Inc., Proposed Modifications to the 1998-99 Interstate Average Schedule Formulas, Order, ASD 98-96, DA 99-530 (March 17, 1999) (March 1999 Order). See 47 C.F.R. Sections 69.605(c) and 69.606. See generally, 47 C.F.R Section 36.601 et. seq. Calculation of the USF expense adjustment is set out in section 36.631 of the Commission's rules. Companies with an average cost per loop exceeding 115% of the national average cost per loop can allocate a specified percentage of these costs to the interstate jurisdiction. 47 CFR 36.631(c), (d). The Commission's recent high cost support proceeding changed the procedures for calculating USF support for non-rural carriers, however, calculations of USF support for
- http://www.fcc.gov/Bureaus/Common_Carrier/Orders/2000/fc00j4a.doc http://www.fcc.gov/Bureaus/Common_Carrier/Orders/2000/fc00j4a.pdf http://www.fcc.gov/Bureaus/Common_Carrier/Orders/2000/fc00j4a.txt
- of forward-looking costs. These reasons included the perceived administrative complexity of adapting the Part 36 Rules for calculating the High Cost Loop fund and Local Switching Support to the Synthesis Model, and the anticipated significant increase in high cost support that would result from such an analysis, which would be applied on a study area basis. See 47 C.F.R. Section 36.631. See 47 C.F.R. Section 54.303. See 47 C.F.R. Section 54.301. In addition to the cap on the growth of the HCL fund, there is a limitation on recovery of corporate operations expense and caps on universal service funds related to newly acquired exchanges. It is estimated that removal of the corporate operations expense limitation would increase the fund for rural
- http://www.fcc.gov/Bureaus/Common_Carrier/Orders/2000/fcc00j4.doc http://www.fcc.gov/Bureaus/Common_Carrier/Orders/2000/fcc00j4.pdf http://www.fcc.gov/Bureaus/Common_Carrier/Orders/2000/fcc00j4.txt
- support reflecting ``meaningful investment'' in acquired access lines. The Rural Task Force provides an illustration of such a mechanism in Appendix D of its Recommendation. In Appendix D, the Rural Task Force defines ``meaningful investment'' for purposes of qualifying a rural carrier for ``safety valve'' support as the difference between the ``index year expense adjustment'' calculated in accordance with section 36.631 of the Commission's rules and subsequent year expense adjustments. The Rural Task Force's example also proposes to limit the total ``safety valve'' support available to all eligible study areas to no more than five percent of the indexed high-cost loop fund cap for rural carriers. We support the Rural Task Force's proposal for providing additional support to rural carriers that
- http://www.fcc.gov/Bureaus/Common_Carrier/Orders/2001/da010129.doc http://www.fcc.gov/Bureaus/Common_Carrier/Orders/2001/da010129.txt
- Mescalero Apache tribal households in Mescalero, New Mexico owning telephones is approximately 46 percent. See New Mexico Certification Order at 2. See Letter from James A. Casey, Attorney for Mescalero Apache Telecom, Inc. to Magalie Roman Salas, FCC, dated January 17, 2001, at 2. filed as an enclosure a Letter from, dated January 17, 2001, at See 47 C.F.R. 36.631. See 47 C.F.R. 36.611. 47 C.F.R. 36.601(c). In the First Report and Order, the Commission retained the indexed cap on the growth of the existing high-cost fund. First Report and Order, 12 FCC Rcd at 8940. The indexed cap, originally adopted in 1993, limits the maximum growth in the total amount of support available from the high-cost fund
- http://www.fcc.gov/Bureaus/Common_Carrier/Orders/2001/da011834.doc http://www.fcc.gov/Bureaus/Common_Carrier/Orders/2001/da011834.txt
- hold-harmless support for exchanges transferred to non-rural carriers will be phased down over the same time period as the seller's support would have been phased down. Id. at para. 22. The Commission also sought comment on whether to continue applying section 54.305 to transfers of telephone exchanges between non-rural carriers following phase-down. Id. at paras. 23-24. See 47 C.F.R. 36.631. See 47 C.F.R. 36.612 See id. The Reservation spans the Gila, Graham, and Pinal counties in southeastern Arizona. Petition at 4. On November 8, 1996, the Accounting and Audits Division granted San Carlos a study area waiver associated with San Carlos's purchase of an exchange previously operated by Qwest Corporation (Qwest) (formerly U S WEST Communications, Inc.). See San
- http://www.fcc.gov/Bureaus/Common_Carrier/Orders/2001/fcc01157.doc http://www.fcc.gov/Bureaus/Common_Carrier/Orders/2001/fcc01157.txt
- The Rural Task Force noted, however, that the safety valve example was used illustratively (i.e., it does not represent a consensus of the Rural Task Force members). In Appendix D, the Rural Task Force proposed that safety valve support should be based on the difference between an ``index year expense adjustment'' calculated for the acquired exchanges in accordance with section 36.631 of the Commission's rules and subsequent year expense adjustments. The ``expense adjustment'' formulas included in section 36.631 of the Commission's rules are used to calculate high-cost loop support for rural carriers. A carrier's expense adjustment is based on the relationship between a carrier's study area average unseparated loop cost per working loop and the national average cost per loop. The
- http://www.fcc.gov/Daily_Releases/Daily_Digest/1997/dd970502.html
- by Chief, Policy and Rules Division, Mass Media Bureau. Adopted: April 23, 1997. by MO&O. (DA No. 97-896). MMB Internet URL: [26]http://www.fcc.gov/Bureaus/Mass_Media/Orders/1997/da970896.txt ADDENDA: The following items, released May 1, 1997, did not appear in Digest No. 84: ----------------------------------------------------------------------- --- PUBLIC NOTICES ----------------------------------------------------------------------- --- Released: May 1, 1997. CASS COUNTY TELEPHONE COMPANY FILED A PETITION FOR WAIVER OF SECTION 36.612(A) OR 36.631(D) OF THE COMMISSION'S RULES - AAD 97-59.Comments due May 21; replies June 2. (DA No. 97-917). Contact: Adrian Wright at (202) 418-0840. Internet URL: [27]http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1997/da970 917.txt Released: May 1, 1997. BETTLES TELEPHONE, INC. AND TELEPHONE UTILITIES OF THE NORTHLAND, INC. FILED A PETITION FOR WAIVER OF THE DEFINITION OF "STUDY AREA" CONTAINED IN THE APPENDIX-GLOSSARY Y OF PART 36 OF
- http://www.fcc.gov/Daily_Releases/Daily_Digest/1998/dd980316.html
- requests for proposal with individualized contract offerings, as unreasonably discriminatory. Dkt No.: CC- 97-158. Action by the Commission. Adopted: March 13, 1998. by MO&O. (FCC No. 98-38). CCB Internet URL: [14]http://www.fcc.gov/Bureaus/Common_Carrier/Orders/1998/fcc98038.txt CASS COUNTY TELEPHONE COMPANY. Denied to the extent discussed and otherwise dismissed Cass County Telephone Company's petiton requesting that the Commission grant it a waiver of Sections 36.612(a) or 36.631(d) of the Commission's rules to enable it to receive high cost loop support in 1997. Action by Chief, Accounting and Audits Division. Adopted: March 13, 1998. by Order. (DA No. 98-498). CCB Internet URL: [15]http://www.fcc.gov/Bureaus/Common_Carrier/Orders/1998/da980498.txt BEEHIVE TELEPHONE COMPANY, INC/ BEEHIVE TELEPHONE, INC. NEVADA. Designated issues for the investigation of Beehive Telephone Company, Inc.'s and Beehive Telephone, Inc. of Nevada's Transmittal
- http://www.fcc.gov/ogc/documents/opinions/1999/farmers.html http://www.fcc.gov/ogc/documents/opinions/1999/farmers.wp
- Shalala, 508 U.S. 402, 417 (1993). Petitioners contend that the language of 36.154(f) suggests that the five percent limitation applies even after a LEC has reached the twenty-five percent base allocator. They point out that 36.154(f) explicitly refers to 36.641(a), which explains that the USF "expense adjustment for 1993 and subsequent years shall be the amount computed in accordance with 36.631." 47 C.F.R. 36.641(a). Because 36.631 provides for USF expense adjustments to be made on a yearly basis after 1989, see id. 36.631(e), petitioners contend that the five percent limitation also must be made on a yearly basis to account for fluctuations in USF expense adjustments, even if a LEC has already reached the twenty-five percent interstate allocation. We disagree. Petitioners'
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- tariffs on behalf of all telephone companies that do not file separate tariffs." 47 C.F.R. 69.601(a). Among those non-filers (called average schedule companies), any company whose local loop costs are 115% or more of the national average may receive additional compensation from the Commission, paid out of the Universal Service Fund pursuant to a set formula. 47 C.F.R. 36.631. In October 1998 the NECA proposed a formula for calculating the USF payments to be made to average schedule companies in the coming year and the Common Carrier Bureau invited public comments on the proposal. The Bureau determined that using the proposed formula would substantially increase the number of companies receiving payments and increase by 33% the total amount paid