§  69.111   Tandem-switched transport and tandem charge.

   (a)(1) Through June 30, 1998, except as provided in paragraph (l) of
   this section, tandem-switched transport shall consist of two rate
   elements, a transmission charge and a tandem switching charge.

   (2) Beginning July 1, 1998, except as provided in paragraph (l) of this
   section, tandem-switched transport shall consist of three rate elements
   as follows:

   (i) A per-minute charge for transport of traffic over common transport
   facilities between the incumbent local exchange carrier's end office
   and the tandem switching office. This charge shall be expressed in
   dollars and cents per access minute of use and shall be assessed upon
   all purchasers of common transport facilities between the local
   exchange carrier's end office and the tandem switching office.

   (ii) A per-minute tandem switching charge. This tandem switching charge
   shall be set in accordance with paragraph (g) of this section,
   excluding multiplexer and dedicated port costs recovered in accordance
   with paragraph (l) of this section, and shall be assessed upon all
   interexchange carriers and other persons that use incumbent local
   exchange carrier tandem switching facilities.

   (iii) A flat-rated charge for transport of traffic over dedicated
   transport facilities between the serving wire center and the tandem
   switching office. This charge shall be assessed as a charge for
   dedicated transport facilities provisioned between the serving wire
   center and the tandem switching office in accordance with §  69.112.

   (b) [Reserved]

   (c)(1) Until June 30, 1998:

   (i) Except in study areas where the incumbent local exchange carrier
   has implemented density pricing zones as described in section 69.123,
   per-minute common transport charges described in paragraph (a)(1) of
   this section shall be presumed reasonable if the incumbent local
   exchange carrier bases the charges on a weighted per-minute equivalent
   of direct-trunked transport DS1 and DS3 rates that reflects the
   relative number of DS1 and DS3 circuits used in the tandem to end
   office links (or a surrogate based on the proportion of copper and
   fiber facilities in the interoffice network), calculated using the
   total actual voice-grade minutes of use, geographically averaged on a
   study-area-wide basis, that the incumbent local exchange carrier
   experiences based on the prior year's annual use. Tandem-switched
   transport transmission charges that are not presumed reasonable shall
   be suspended and investigated absent a substantial cause showing by the
   incumbent local exchange carrier.

   (ii) In study areas where the incumbent local exchange carrier has
   implemented density pricing zones as described in section 69.123,
   per-minute common transport charges described in paragraph (a)(1) of
   this section shall be presumed reasonable if the incumbent local
   exchange carrier bases the charges on a weighted per-minute equivalent
   of direct-trunked transport DS1 and DS3 rates that reflects the
   relative number of DS1 and DS3 circuits used in the tandem to end
   office links (or a surrogate based on the proportion of copper and
   fiber facilities in the interoffice network), calculated using the
   total actual voice-grade minutes of use, averaged on a zone-wide basis,
   that the incumbent local exchange carrier experiences based on the
   prior year's annual use. Tandem-switched transport transmission charges
   that are not presumed reasonable shall be suspended and investigated
   absent a substantial cause showing by the incumbent local exchange
   carrier.

   (2) Beginning July 1, 1998:

   (i) Except in study areas where the incumbent local exchange carrier
   has implemented density pricing zones as described in section 69.123,
   per-minute common transport charges described in paragraph (a)(2)(i) of
   this section shall be presumed reasonable if the incumbent local
   exchange carrier bases the charges on a weighted per-minute equivalent
   of direct-trunked transport DS1 and DS3 rates that reflects the
   relative number of DS1 and DS3 circuits used in the tandem to end
   office links (or a surrogate based on the proportion of copper and
   fiber facilities in the interoffice network), calculated using the
   total actual voice-grade minutes of use, geographically averaged on a
   study-area-wide basis, that the incumbent local exchange carrier
   experiences based on the prior year's annual use. Tandem-switched
   transport transmission charges that are not presumed reasonable shall
   be suspended and investigated absent a substantial cause showing by the
   incumbent local exchange carrier.

   (ii) In study areas where the incumbent local exchange carrier has
   implemented density pricing zones as described in section 69.123,
   per-minute common transport charges described in paragraph (a)(2)(i) of
   this section shall be presumed reasonable if the incumbent local
   exchange carrier bases the charges on a weighted per-minute equivalent
   of direct-trunked transport DS1 and DS3 rates that reflects the
   relative number of DS1 and DS3 circuits used in the tandem to end
   office links (or a surrogate based on the proportion of copper and
   fiber facilities in the interoffice network), calculated using the
   total actual voice-grade minutes of use, averaged on a zone-wide basis,
   that the incumbent local exchange carrier experiences based on the
   prior year's annual use. Tandem-switched transport transmission charges
   that are not presumed reasonable shall be suspended and investigated
   absent a substantial cause showing by the incumbent local exchange
   carrier.

   (d)(1) Through June 30, 1998, the tandem-switched transport
   transmission charges may be distance-sensitive. Distance shall be
   measured as airline distance between the serving wire center and the
   end office, unless the customer has ordered tandem-switched transport
   between the tandem office and the end office, in which case distance
   shall be measured as airline distance between the tandem office and the
   end office.

   (2) Beginning July 1, 1998, the per-minute charge for transport of
   traffic over common transport facilities described in paragraph
   (a)(2)(i) of this section may be distance-sensitive. Distance shall be
   measured as airline distance between the tandem switching office and
   the end office.

   (e)(1) Through June 30, 1998, if the telephone company employs
   distance-sensitive rates:

   (i) A distance-sensitive component shall be assessed for use of the
   transmission facilities, including intermediate transmission circuit
   equipment between the end points of the interoffice circuit; and

   (ii) A non-distance-sensitive component shall be assessed for use of
   the circuit equipment at the ends of the interoffice transmission
   links.

   (2) Beginning July 1, 1998, if the telephone company employs
   distance-sensitive rates for transport of traffic over common transport
   facilities, as described in paragraph (a)(2)(i) of this section:

   (i) A distance-sensitive component shall be assessed for use of the
   common transport facilities, including intermediate transmission
   circuit equipment between the end office and tandem switching office;
   and

   (ii) A non-distance-sensitive component shall be assessed for use of
   the circuit equipment at the ends of the interoffice transmission
   links.

   (f) [Reserved]

   (g)(1) The tandem switching charge imposed pursuant to paragraphs
   (a)(1) or (a)(2)(ii) of this section, as applicable, shall be set to
   recover twenty percent of the annual part 69 interstate tandem revenue
   requirement plus one third of the portion of the tandem switching
   revenue requirement being recovered through the interconnection charge
   recovered by § §  69.124, 69.153, and 69.155, excluding multiplexer and
   dedicated port costs recovered in accordance with paragraph (l) of this
   section.

   (2) Beginning January 1, 1999, the tandem switching charge imposed
   pursuant to paragraph (a)(2)(ii) of this section shall be set to
   recover the amount prescribed in paragraph (g)(1) of this section plus
   one half of the remaining portion of the tandem switching revenue
   requirement then being recovered through the interconnection charge
   recovered by § §  69.124, 69.153, and 69.155, excluding multiplexer and
   dedicated port costs recovered in accordance with paragraph (l) of this
   section.

   (3) Beginning January 1, 2000, the tandem switching charge imposed
   pursuant to paragraph (a)(2)(ii) of this section shall be set to
   recover the entire interstate tandem switching revenue requirement,
   including that portion formerly recovered through the interconnection
   charge recovered in § §  69.124, 69.153, and 69.155, and excluding
   multiplexer and dedicated port costs recovered in accordance with
   paragraph (l) of this section.

   (4) A local exchange carrier that is subject to price cap regulation as
   that term is defined in §  61.3(x) of this chapter shall calculate its
   tandem switching revenue requirement as used in this paragraph by
   dividing the tandem switching revenue requirement that was included in
   the original interconnection charge by the original interconnection
   charge, and then multiplying this result by the annual revenues
   recovered through the interconnection charge, described in §  69.124,
   as of June 30, 1997. A local exchange carrier that is subject to price
   cap regulation as that term is defined in §  61.3(x) of this chapter
   shall then make downward exogenous adjustments to the service band
   index for the interconnection charge service category (defined in
   §  61.42(e)(2)(vi) of this chapter) and corresponding upward
   adjustments to the service band index for the tandem-switched transport
   service category (defined in §  61.42(e)(2)(v) of this chapter) at the
   times and in the amounts prescribed in paragraphs (g)(1) through (g)(3)
   of this section .

   (h) All telephone companies shall provide tandem-switched transport
   service.

   (i) Except in the situations set forth in paragraphs (j) and (k) of
   this section, telephone companies may offer term and volume discounts
   in tandem-switched transport charges within each study area used for
   the purpose of jurisdictional separations, in which interconnectors
   have taken either:

   (1) At least 100 DS1-equivalent cross-connects for the transmission of
   switched traffic (as described in §  69.121(a)(1) of this chapter) in
   offices in the study area that the telephone company has assigned to
   the lowest priced density pricing zone (zone 1) under an approved
   density pricing zone plan as described in § §  61.38(b)(4) and 61.49(k)
   of this chapter; or

   (2) An average of at least 25 DS1-equivalent cross-connects for the
   transmission of switched traffic per office assigned to the lowest
   priced density pricing zone (zone 1).

   (j) In study areas in which the telephone company has implemented
   density zone pricing, but no offices have been assigned to the lowest
   priced density pricing zone (zone 1), telephone companies may offer
   term and volume discounts in tandem-switched transport charges within
   the study area when interconnectors have taken at least 5
   DS1-equivalent cross-connects for the transmission of switched traffic
   (as described in §  69.121(a)(1) of this chapter) in offices in the
   study area.

   (k) In study areas in which the telephone company has not implemented
   density zone pricing, telephone companies may offer term and volume
   discounts in tandem-switched transport charges when interconnectors
   have taken at least 100 DS1-equivalent cross-connects for the
   transmission of switched traffic (as described in §  69.121(a)(1) of
   this chapter) in offices in the study area.

   (l) In addition to the charges described in this section, price cap
   local exchange carriers shall establish separate charges for
   multiplexers and dedicated trunk ports used in conjunction with the
   tandem switch as follows:

   (1) Local exchange carriers must establish a traffic-sensitive charge
   for DS3/DS1 multiplexers used on the end office side of the tandem
   switch, assessed on purchasers of common transport to the tandem
   switch. This charge must be expressed in dollars and cents per access
   minute of use. The maximum charge shall be calculated by dividing the
   total costs of the multiplexers on the end office-side of the tandem
   switch by the annual access minutes of use calculated for purposes of
   recovery of common transport costs in paragraph (c) of this section. A
   similar charge shall be assessed for DS1/voice-grade multiplexing
   provided on the end-office side of analog tandem switches.

   (2)(i) Local exchange carriers must establish a flat-rated charge for
   dedicated DS3/DS1 multiplexing on the serving wire center side of the
   tandem switch provided in conjunction with dedicated DS3 transport
   service from the serving wire center to the tandem switch. This charge
   shall be assessed on interexchange carriers purchasing tandem-switched
   transport in proportion to the number of DS3 trunks provisioned for
   that interexchange carrier between the serving wire center and the
   tandem-switch.

   (ii) Local exchange carriers must establish a flat-rated charge for
   dedicated DS1/voice-grade multiplexing provided on the serving wire
   center side of analog tandem switches. This charge may be assessed on
   interexchange carriers purchasing tandem-switched transport in
   proportion to the interexchange carrier's transport capacity on the
   serving wire center side of the tandem.

   (3) Price cap local exchange carriers may recover the costs of
   dedicated trunk ports on the serving wire center side of the tandem
   switch only through flat-rated charges expressed in dollars and cents
   per trunk port and assessed upon the purchaser of the dedicated trunk
   terminating at the port.

   (m) In addition to the charges described in this section, non-price cap
   local exchange carriers may establish separate charges for multiplexers
   and dedicated trunk ports used in conjunction with the tandem switch as
   follows:

   (1)(i) Non-price cap local exchange carriers may establish a flat-rated
   charge for dedicated DS3/DS1 multiplexing on the serving wire center
   side of the tandem switch provided in conjunction with dedicated DS3
   transport service from the serving wire center to the tandem switch.
   This charge shall be assessed on interexchange carriers purchasing
   tandem-switched transport in proportion to the number of DS3 trunks
   provisioned for that interexchange carrier between the serving wire
   center and the tandem switch.

   (ii) Non-price cap local exchange carriers may establish a flat-rated
   charge for dedicated DS1/voice-grade multiplexing provided on the
   serving wire center side of analog tandem switches. This charge may be
   assessed on interexchange carriers purchasing tandem-switched transport
   in proportion to the interexchange carrier's transport capacity on the
   serving wire center side of the tandem.

   (2) Non-price cap local exchange carriers may recover the costs of
   dedicated trunk ports on the serving wire center side of the tandem
   switch through flat-rated charges expressed in dollars and cents per
   trunk port and assessed upon the purchaser of the dedicated trunk
   terminating at the port.

   [ 57 FR 54720 , Nov. 20, 1992, as amended at  58 FR 41190 , Aug. 3, 1993;
    58 FR 48764 , Sept. 17, 1993;  60 FR 50121 , Sept. 28, 1995;  62 FR 31933 ,
   June 11, 1997;  62 FR 40463 , July 29, 1997;  62 FR 56132 , Oct. 29, 1997;
    64 FR 46594 , Aug. 26, 1999;  66 FR 59732 , Nov. 30, 2001]

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