Sec. 69.104  End user common line for non-price cap incumbent local 
          exchange carriers.

    (a) This section is applicable only to incumbent local exchange 
carriers that are not subject to price cap regulation as that term is 
defined in Sec. 61.3(x) of this chapter. A charge that is expressed in 
dollars and cents per line per month shall be assessed upon end users 
that subscribe to local exchange telephone service or Centrex service to 
the extent they do not pay carrier common line charges. A charge that is 
expressed in dollars and cents per line per month shall be assessed upon 
providers of public telephones. Such charges shall be assessed for each 
line between the premises of an end user, or public telephone location, 
and a Class 5 office that is or may be used for local exchange service 
transmissions.
    (b) Charges to multi-line subscribers shall be computed by 
multiplying a single line rate by the number of lines used by such 
subscriber.
    (c) Except as provided in Sec. 69.104(d) through (h), the single 
line rate or charge shall be computed by dividing one-twelfth of the 
projected annual revenue requirement for the End User Common Line 
element by the projected average number of local exchange service 
subscriber lines in use during such annual period.
    (d)(1) If the monthly charge computed in accordance with 
Sec. 69.104(c) exceeds $6, the charge for each local exchange service 
subscriber line, except a residential line, a single-line business line, 
or a line used for Centrex-CO service that was in place or on order as 
of July 27, 1983, shall be $6.
    (2) The charge for each subscriber line associated with a public 
telephone shall be equal to the monthly charge computed in accordance 
with paragraph (d)(1) of this section.
    (e) The monthly charge for each residential and single line business 
local exchange service subscriber shall be the charge computed in 
accordance with paragraph (c) of this section, or $3.50, whichever is 
lower.
    (f) Except as provided in Sec. 69.104 (j) and (k), the charge for 
each residential local exchange service subscriber line shall be the 
same as the charge for each single line business local exchange service 
subscriber line.
    (g) A line shall be deemed to be a residential line if the 
subscriber pays a rate for such line that is described as a residential 
rate in the local exchange service tariff.
    (h) A line shall be deemed to be a single line business line if the 
subscriber pays a rate that is not described as a residential rate in 
the local exchange service tariff and does not obtain more than one such 
line from a particular telephone company.
    (i) The End User Common Line charge for each multi-party subscriber 
shall be assessed as if such subscriber had subscribed to single-party 
service.
    (j) Until December 31, 1997, the End User Common Line charge for a 
residential subscriber shall be 50% of the charge specified in 
Sec. 69.104(c) and (d) if the residential local exchange service rate 
for such subscribers is reduced by an equivalent amount, provided, That 
such local exchange service rate reduction is based upon a means test 
that is subject to verification.
    (k) Paragraphs (k)(1) through (2) of this section are effective 
until December 31, 1997.
    (1) The End User Common Line charge for residential subscribers 
shall be reduced to the extent of the state assistance as calculated in 
paragraph (k)(2) of this section, or waived in full if the state 
assistance equals or exceeds the residential End User Common

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Line charge under the circumstances described below. In order to qualify 
for this waiver, the subscriber must be eligible for and receive 
assistance or benefits provided pursuant to a narrowly targeted 
telephone company lifeline assistance program, requiring verification of 
eligibility, implemented by the State or local telephone company. A 
state or local telephone company wishing to implement this End User 
Common Line reduction or waiver for its subscribers shall file 
information with the Commission Secretary demonstrating that its plan 
meets the criteria set out in this section and showing the amount of 
state assistance per subscriber as described in paragraph (k)(2) of this 
section. The reduction or waiver of the End User Common Line charge 
shall be available as soon as the Commission certifies that the State or 
local telephone plan satisfies the criteria set out in this paragraph 
and the relevant tariff provisions become effective.
    (2)(i) The State assistance per subscriber shall be equal to the 
difference between the charges to be paid by the participating 
subscribers and those to be paid by other subscribers for comparable 
monthly local exchange service, service connections and customer 
deposits, except that benefits or assistance for connection charges and 
deposit requirements may only be counted once annually. In order to be 
included in calculating the state assistance, such benefits must be for 
a single telephone line to the household's principal residence.
    (ii) The monthly state assistance per participating subcriber shall 
be calculated by adding the amounts calculated in paragraphs (k)(2)(ii) 
(A) and (B) of this section.
    (A) The amount of the monthly State assistance per participating 
subscriber for local exchange service shall be calculated by dividing 
the annual difference between charges paid by all participating 
subscribers for residential local exchange service and the amount which 
would have been charged to non-qualifying subscribers for comparable 
service by twelve times the number of subscribers participating in the 
State assistance program. Estimates may be used when historic data are 
not available.
    (B) The amount of the monthly State assistance for service 
connections and customer deposits per participating subscriber shall be 
calculated by determining the annual amount of the reductions in these 
charges for participating subscribers each year and dividing this amount 
by twelve times the number of participating subscribers. Estimates may 
be used when historic data are not available.
    (l) Until December 31, 1997, in connection with the filing of access 
tariffs pursuant to Sec. 69.3(a), telephone companies shall calculate 
for the association their projected revenue requirements attributable to 
the operation of paragraphs (j) through (k) of this section. The 
projected amount will be adjusted by the association to reflect the 
actual lifeline assistance benefits paid in the previous period. If the 
actual benefits exceeded the projected amount of that period, the 
differential will be added to the projection for the ensuing period. If 
the actual benefits were less than the projected amount for that period, 
the differential will be subtracted from the projection for the ensuing 
period. Until December 31, 1997, the association shall so adjustamounts 
to the Lifeline Assistance revenue requirement, bill and collect such 
amounts from interexchange carriers pursuant to Sec. 69.117 and 
distribute the funds to qualifying telephone companies pursuant to 
Sec. 69.603(d).
    (m) No charge shall be assessed for any WATS access line.

[ 48 FR 10358 , Mar. 11, 1983, as amended at  48 FR 43018 , Sept. 21, 1983; 
 52 FR 21540 , June 8, 1987;  53 FR 28395 , July 28, 1988;  61 FR 65364 , Dec. 
12, 1996;  62 FR 31933 , June 11, 1997;  62 FR 32962 , June 17, 1997]