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(ee) 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) Until December 31, 2001, except as provided in paragraphs (d) through
   (h) of this section, 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) Until December 31, 2001, if the monthly charge computed in accordance
   with paragraph (c) of this section 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) Until December 31, 2001, 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) Until December 31, 2001, 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. 54.403 of this chapter, 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)–(l) [Reserved]

   (m) No charge shall be assessed for any WATS access line.

   (n)(1) Beginning January 1, 2002, except as provided in paragraph (r) of
   this section, the maximum monthly charge for each residential or single-line
   business local exchange service subscriber line shall be the lesser of:

   (i) One-twelfth of the projected annual revenue requirement for the End User
   Common  Line  element divided by the projected average number of local
   exchange service subscriber lines in use during such annual period; or

   (ii) The following:

   (A) Beginning January 1, 2002, $5.00.

   (B) Beginning July 1, 2002, $6.00.

   (C) Beginning July 1, 2003, $6.50.

   (2) In the event that GDP-PI exceeds 6.5% or is less than 0%, the maximum
   monthly charge in paragraph (n)(1)(ii) of this section will be adjusted in
   the same manner as the adjustment in  Sec. 69.152(d)(2).

   (o)(1) Beginning on January 1, 2002, except as provided in paragraph (r) of
   this section, the maximum monthly End User Common Line Charge for multi-line
   business lines will be the lesser of:

   (i) $9.20; or

   (ii) One-twelfth of the projected annual revenue requirement for the End
   User Common Line element divided by the projected average number of local
   exchange service subscriber lines in use during such annual period;

   (2) In the event that GDP-PI is greater than 6.5% or is less than 0%, the
   maximum  monthly charge in paragraph (o)(1)(i) of this section will be
   adjusted in the same manner as the adjustment in  Sec. 69.152(k)(2).

   (p) Beginning January 1, 2002, non-price cap local exchange carriers shall
   assess:

   (1) No more than one End User Common Line charge as calculated under the
   applicable  method  under paragraph (n) of this section for Basic Rate
   Interface integrated services digital network (ISDN) service.

   (2) No more than five End User Common Line charges as calculated under
   paragraph (o) of this section for Primary Rate Interface ISDN service.

   (q) In the event a non-price cap local exchange carrier charges less than
   the  maximum End User Common Line charge for any subscriber lines, the
   carrier may not recover the difference between the amount collected and the
   maximum from carrier common line charges, Interstate Common Line Support, or
   Long Term Support.

   (r) End User Common Line charge deaveraging. Beginning on January 1, 2002,
   non-price cap local exchange carriers may geographically deaverage End User
   Common Line charges subject to the following conditions.

   (1) In order for a non-price cap local exchange carrier to be allowed to
   deaverage End User Common Line charges within a study area, the non-price
   cap local exchange carrier must have:

   (i) State commission-approved geographically deaveraged rates for UNE loops
   within that study area; or

   (ii) A universal service support disaggregation plan established pursuant to
    Sec. 54.315 of this chapter.

   (2) All geographic deaveraging of End User Common Line charges by customer
   class within a study area must be according to the state commission-approved
   UNE  loop  zone,  or the universal service support disaggregation plan
   established pursuant to  Sec. 54.315 of this chapter.

   (3) Within a given zone, Multi-line Business End User Common Line rates
   cannot fall below Residential and Single-Line Business rates.

   (4) For any given class of customer in any given zone, the End User Common
   Line Charge in that zone must be greater than or equal to the End User
   Common Line charge in the zone with the next lower cost per line.

   (5) A non-price cap local exchange carrier shall not receive more through
   deaveraged End User Common Line charges than it would have received if it
   had not deaveraged its End User Common Line charges.

   (6) Maximum charge. The maximum zone deaveraged End User Common Line Charge
   that  may  be  charged  in any zone is the applicable cap specified in
   paragraphs (n) or (o) of this section.

   (7)  Voluntary Reductions. A “Voluntary Reduction” is one in which the
   non-price cap local exchange carrier charges End User Common Line rates
   below the maximum charges specified in paragraphs (n)(1) or (o)(1) of this
   section other than through offset of net increases in End User Common Line
   charge revenues or through increases in other zone deaveraged End User
   Common Line charges.

   [ 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;  66 FR 59730 ,
   Nov. 30, 2001]