Sec. 36.126  Circuit equipment--Category 4.

    (a) For the purpose of this section, the term ``Circuit Equipment'' 
encompasses the Radio Systems and Circuit Equipment contained in 
Accounts 2230 through 2232 respectively. It includes central office 
equipment, other than switching equipment and automatic message 
recording equipment, which is used to derive communications transmission 
channels or which is used for the amplification, modulation, 
regeneration, testing, balancing or control of signals transmitted over 
communications transmission channels. Examples of circuit equipment in 
general use include:
    (1) Carrier telephone and telegraph system terminals.
    (2) Telephone and telegraph repeaters, termination sets, impedance 
compensators, pulse link repeaters, echo suppressors and other 
intermediate transmission amplification and balancing equipment except 
that included in switchboards.
    (3) Radio transmitters, receivers, repeaters and other radio central 
office equipment except message switching equipment associated with 
radio systems.
    (4) Composite ringers, line signaling and switching pad circuits.
    (5) Concentration equipment.
    (6) Composite sets and repeating coils.
    (7) Program transmission amplifiers, monitoring devices and volume 
indicators.
    (8) Testboards, test desks, repair desks and patch bays, including 
those provided for test and control, and for telegraph and transmission 
testing.
    (b) For apportionment among the operations, the cost of circuit 
equiment is assigned to the following subsidiary categories:
    (1) Exchange Circuit Equipment--Category 4.1.
    (i) Wideband Exchange Line Circuit Equipment--Category 4.11.
    (ii) Exchange Trunk Circuit Equipment (Wideband and Non-Wideband)--
Category 4.12.
    (iii) Exchange Line Circuit Equipment Excluding Wideband--Category 
4.13.
    (2) Interexchange Circuit Equipment--Category 4.2.
    (i) Interexchange Circuit Equipment Furnished to Another Company for 
Interstate Use--Category 4.21.
    (ii) Interexchange Circuit Equipment Used for Wideband Services 
including Satellite and Earth Station Equipment used for Wideband 
Service--Category 4.22.
    (iii) All Other Interexchange Circuit Equipment--Category 4.23.
    (3) Host/Remote Message Circuit Equipment--Category 4.3.
    (4) In addition, for the purpose of identifying and separating 
property associated with special services, circuit equipment included in 
Categories 4.12 (other than wideband equipment) 4.13 and 4.23 is 
identified as either basic circuit equipment, i.e., equipment that 
performs functions necessary to provide and operate channels suitable 
for voice transmission (telephone grade channels), or special circuit 
equipment, i.e., equipment that is peculiar to special service circuits. 
Carrier telephone terminals and carrier telephone repeaters are examples 
of basic circuit equipment is general use, while audio program 
transmission amplifiers, bridges, monitoring devices and volume 
indicators, telegraph carrier terminals and telegraph repeaters are 
examples of special circuit equipment in general use. Cost of exchange 
circuit equipment included in Categories 4.12 and 4.13 and the 
interexchange circuit equipment in Categories 4.21, 4.22 and 4.23 are 
segregated between basic circuit equipment and special circuit equipment 
only at those locations where amounts of interexchange and exchange 
special circuit equipment are significant. Where such segregation is not 
made, the total costs in these categories are classified as basic 
circuit equipment.
    (c) Apportionment of Exchange Circuit Equipment Among the 
Operations:

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    (1) Wideband Exchange Line Circuit Equipment--Category 4.11--The 
cost of exchange circuit equipment in this category is determined 
separately for each wideband facility. The respective costs are 
allocated to the appropriate operation in the same manner as the related 
exchange line cable and wire facilities described in Sec. 36.155.
    (2) Exchange Trunk Circuit Equipment (Wideband and Non-Wideband)--
Category 4.12--The cost of exchange circuit equipment associated with 
this category for the study area is allocated to the appropriate 
operation in the same manner as the related exchange trunk cable and 
wire facilities as described in Sec. 36.155.
    (3) Exchange Line Circuit Equipment Excluding Wideband--Category 
4.13--The cost of Circuit Equipment associated with exchange line plant 
excluding wideband for the study area is assigned to subcategories and 
is allocated to the appropriate operation in the same manner as the 
related exchange line cable and wire facilities for non-wideband service 
as described in Sec. 36.154.
    (d) Apportionment of Interexchange Circuit Equipment among the 
Operations: Procedures to be Used by Interexchange Carriers.
    (1) Interexchange Circuit Equipment Furnished to Another Company for 
Interstate Use--Category 4.21--This category comprises that circuit 
equipment provided for the use of another company as an integral part of 
its interexchange circuit facilities used wholly for interstate 
services. This category includes such circuit equipment as telephone 
carrier, terminals telegraph carrier terminals, and microwave systems 
used wholly for interstate services. The total cost of the circuit 
equipment in this category for the study area is assigned to the 
interstate operation.
    (2) Interexchange Circuit Equipment Used for Wideband Service--
Category 4.22--This category includes the circuit equipment portion of 
interexchange channels used for wideband services. The cost of 
interexchange circuit equipment in this category is determined 
separately for each wideband channel and is segregated between message 
and private line services on the basis of the use of the channels 
provided. The respective costs are allocated to the appropriate 
operation in the same manner as the related interexchange cable and wire 
facilities as described in Sec. 36.156.
    (3) All Other Interexchange Circuit Equipment--Category 4.23--This 
category includes the cost of all interexchange circuit equipment not 
assigned to Categories 4.21 and 4.22. Interexchange carriers shall 
freeze the allocation factors for Category 4.23 investment at levels 
reached on December 31, 1985, derived by using the procedures in effect 
at that time. On January 1, 1988, and thereafter, that frozen allocation 
factor shall be applied to each interexchange carrier's Category 4.23 
investment to derive the interstate allocation. On January 1, 1988, and 
thereafter, the amount of investment allocated to the interstate 
jurisdiction will vary but the relative proportion of the total 
investment that is allocated to the interstate jurisdiction will remain 
frozen at 1985 levels.
    (e) Apportionment of Interexchange Circuit Equipment among the 
Operations: Procedures To Be Used by Exchange Carriers.
    (1) Interexchange Circuit Equipment Furnished to Another Company for 
Interstate Use--Category 4.21--This category comprises that circuit 
equipment provided for the use of another company as an integral part of 
its interexchange circuit facilities used wholly for interstate 
services. This category includes such circuit equipment as telephone 
carrier terminals telegraph carrier terminals, and microwave systems 
used wholly for interstate services. The total cost of the circuit 
equipment in this category for the study area is assigned to the 
interstate operation.
    (2) Interexchange Circuit Equipment Used for Wideband Service--
Category 4.22--This category includes the circuit equipment portion of 
interexchange channels used for wideband services. The cost of 
interexchange circuit equipment in this category is determined 
separately for each wideband channel and is segregated between message 
and private line services on the

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basis of the use of the channels provided. The respective costs are 
allocated to the appropriate operation in the same manner as the related 
interexchange cable and wire facilities described in Sec. 36.156.
    (3) All Other Interexchange Circuit Equipment--Category 4.23--This 
category includes the cost of all interexchange circuit equipment not 
assigned to Categories 4.21 and 4.22. The cost of interexchange basic 
circuit equipment used for the following classes of circuits is included 
in this category: Jointly used message circuits, i.e., message switching 
plant circuits carrying messages from the state and interstate 
operations; circuits used exclusively for TWX service; circuits uses for 
interstate private line service; and circuits used for state private 
line services.
    (i) An average interexchange circuit equipment cost per equivalent 
interexchange telephone termination for all circuits is determined and 
applied to the equivalent interexchange telephone termination counts of 
each of the following classes of circuits: Interstate Private Line, 
State Private Line, Message, and TWX. The cost of interstate private 
line circuits is assigned directly to the interstate operation. The cost 
of state private line circuits is assigned directly to the state 
operation. The cost of message circuits is apportioned between the state 
and interstate operations on the basis of the relative number of study 
area conversation-minutes applicable to such facilities.
    (ii) The cost on interexchange circuit equipment assigned TWX 
circuits is apportioned between state and interstate toll in accordance 
with Sec. 36.126(e)(3)(i) and pursuant to the following procedures. The 
cost of circuit equipment associated with the TWX intertoll circuits 
used jointly for state and interstate operations is apportioned between 
the operations on the basis of the relative number of study area TWX 
connection-minutes applicable to such facilities. The cost of circuit 
equipment associated with the interexchange portion of the TWX remote 
access lines is apportioned between state and interstate operation on 
the basis of the relative number of study area TWX connection-minutes 
applicable to those facilities.
    (iii) The cost of special circuit equipment is segregated among TWX 
service, telegraph grade private line services and other private line 
services based on an analysis of the use of the equipment and in 
accordance with Sec. 36.126(b)(4). The cost of TWX special circuit 
equipment is apportioned on the same basis as that used for intertoll 
TWX circuits. The special circuit equipment cost assigned to telegraph 
grade and other private line services is directly assigned to the 
appropriate operation.
    (f) Apportionment of Host/Remote Message Circuit Equipment Among the 
Operations.
    (1) Host/Remote Message Circuit Equipment--Category 4.3. This 
category includes message host/remote location circuit equipment for 
which a message circuit switching function is performed at the host 
central office associated with cable and wire facilities as described in 
Sec. 36.152(c).
    (i) The category 4.3 cost of host/remote circuit equipment assigned 
to message services for the study area is apportioned among the 
exchange, intrastate toll, and interstate toll operations on the basis 
of the assignment of host/remote message cable and wire facilities as 
described in Sec. 36.157.
[52 1997 FR 17229 , May 6, 1987, as amended at  53 FR 33012  Aug. 29, 1988]

           Information Origination/Termination (IOT) Equipment