§  54.803   Universal service zones.

   (a) The zones used for determining interstate access universal service
   support shall be the same zones that would be used for End User Common
   Line (EUCL) charge deaveraging as described in § 69.152(q)(2) of this
   chapter.

   (b) In a price cap study area where the price cap local exchange
   carrier has not established state-approved prices for UNE loops by
   zone, the Administrator shall develop an estimate of the local exchange
   carrier's Zone Above Benchmark Revenues for transitional purposes, in
   order to reserve a portion of the fund for that study area. This
   estimate will be included by the Administrator in the Nationwide Study
   Area Above Benchmark Revenues calculated pursuant to § 54.806.

   (1) For the purpose of developing this transitional estimate, the loop
   and port costs estimated by the FCC cost model, or other substitute
   method if no model is available, shall be used.

   (2) For the purpose of developing this transitional estimate, the
   administrator shall construct three zones. Wire centers within the
   study area will be grouped into these zones in such a way that each
   zone is assigned approximately one third of local exchange carrier base
   period lines in the study area, with the lowest cost wire centers
   assigned to Zone 1, the highest cost wire centers assigned to Zone 3,
   and the remainder to Zone 2.

   [ 65 FR 38690 , June 21, 2000;  65 FR 57740 , Sept. 26, 2000]