Sec. 54.305  Sale or transfer of exchanges.

    A carrier that acquires telephone exchanges from an unaffiliated 
carrier shall receive universal service support for the acquired 
exchanges at the same per-line support levels for which those exchanges 
were eligible prior to the transfer of the exchanges. A carrier that has 
entered into a binding commitment to buy exchanges prior to May 7, 1997 
will receive support for the newly acquired lines based upon the average 
cost of all of its lines, both those newly acquired and those it had 
prior to execution of the sales agreement.