§  51.707   Default proxies for incumbent LECs' transport and termination
rates.

   (a) A state commission may determine that the cost information
   available to it with respect to transport and termination of
   telecommunications traffic does not support the adoption of a rate or
   rates for an incumbent LEC that are consistent with the requirements of
   § § 51.505 and 51.511. In that event, the state commission may
   establish rates for transport and termination of telecommunications
   traffic, or for specific components included therein, that are
   consistent with the proxies specified in this section, provided that:

   (1) Any rate established through use of such proxies is superseded once
   that state commission establishes rates for transport and termination
   pursuant to § § 51.705(a)(1) or 51.705(a)(3); and

   (2) The state commission sets forth in writing a reasonable basis for
   its selection of a particular proxy for transport and termination of
   telecommunications traffic, or for specific components included within
   transport and termination.

   (b) If a state commission establishes rates for transport and
   termination of telecommunications traffic on the basis of default
   proxies, such rates must meet the following requirements:

   (1) Termination. The incumbent LEC's rates for the termination of
   telecommunications traffic shall be no greater than 0.4 cents ($0.004)
   per minute, and no less than 0.2 cents ($0.002) per minute, except
   that, if a state commission has, before August 8, 1996, established a
   rate less than or equal to 0.5 cents ($0.005) per minute for such
   calls, that rate may be retained pending completion of a
   forward-looking economic cost study.

   (2) Transport . The incumbent LEC's rates for the transport of
   telecommunications traffic, under this section, shall comply with the
   proxies described in § 51.513(c) (3), (4), and (5) of this part that
   apply to the analogous unbundled network elements used in transporting
   a call to the end office that serves the called party.

   [ 61 FR 45619 , Aug. 29, 1996, as amended at  61 FR 52709 , Oct. 8, 1996]