Sec.  64.1903   Obligations of all incumbent independent local exchange carriers.

   (a)  Except as provided in paragraph (c) of this section, an incumbent
   independent LEC providing in-region, interstate, interexchange services or
   in-region international interexchange services shall provide such services
   through an affiliate that satisfies the following requirements:

   (1)  The  affiliate  shall maintain separate books of account from its
   affiliated  exchange  companies.  Nothing in this section requires the
   affiliate to maintain separate books of account that comply with Part 32 of
   this title;

   (2) The affiliate shall not jointly own transmission or switching facilities
   with its affiliated exchange companies. Nothing in this section prohibits an
   affiliate  from sharing personnel or other resources or assets with an
   affiliated exchange company; and

   (3) The affiliate shall acquire any services from its affiliated exchange
   companies for which the affiliated exchange companies are required to file a
   tariff at tariffed rates, terms, and conditions. Nothing in this section
   shall prohibit the affiliate from acquiring any unbundled network elements
   or exchange services for the provision of a telecommunications service from
   its affiliated exchange companies, subject to the same terms and conditions
   as provided in an agreement approved under section 252 of the Communications
   Act of 1934, as amended.

   (b) Except as provided in paragraph (b)(1) of this section, the affiliate
   required in paragraph (a) of this section shall be a separate legal entity
   from its affiliated exchange companies. The affiliate may be staffed by
   personnel of its affiliated exchange companies, housed in existing offices
   of  its affiliated exchange companies, and use its affiliated exchange
   companies' marketing and other services, subject to paragraph (a)(3) of this
   section.

   (1) For an incumbent independent LEC that provides in-region, interstate
   domestic interexchange services or in-region international interexchange
   services using no interexchange switching or transmission facilities or
   capability  of  the  LEC's own (i.e., “independent LEC reseller,”) the
   affiliate  required in paragraph (a) of this section may be a separate
   corporate division of such incumbent independent LEC. All other provisions
   of this Subpart applicable to an independent LEC affiliate shall continue to
   apply, as applicable, to such separate corporate division.

   (2) [Reserved]

   (c) An incumbent independent LEC that is providing in-region, interstate,
   domestic interexchange services or in-region international interexchange
   services prior to April 18, 1997, but is not providing such services through
   an affiliate that satisfies paragraph (a) of this section as of April 18,
   1997, shall comply with the requirements of this section no later than
   August 30, 1999.

   [ 64 FR 44425 , Aug. 16, 1999]

Subpart U—Customer Proprietary Network Information

   Source:    63 FR 20338 , Apr. 24, 1998, unless otherwise noted.