§ 54.902   Calculation of CAF BLS Support for transferred exchanges.

   (a) In the event that a rate-of-return carrier acquires exchanges from
   an entity that is also a rate-of-return carrier, CAF BLS for the
   transferred exchanges shall be distributed as follows:

   (1) Each carrier may report its updated line counts to reflect the
   transfer in the next quarterly line count filing pursuant to
   § 54.903(a)(1) that applies to the period in which the transfer
   occurred. During a transition period from the filing of the updated
   line counts until the end of the funding year, the Administrator shall
   adjust the CAF BLS Support received by each carrier based on the
   updated line counts and the per-line CAF BLS, categorized by customer
   class and, if applicable, disaggregation zone, of the selling carrier.
   If the acquiring carrier does not file a quarterly update of its line
   counts, it will not receive CAF BLS for those lines during the
   transition period.

   (2) Each carrier's projected data for the following funding year filed
   pursuant to § 54.903(a)(3) shall reflect the transfer of exchanges.

   (3) Each carrier's actual data filed pursuant to § 54.903(a)(4) shall
   reflect the transfer of exchanges. All post-transaction CAF BLS shall
   be subject to true up by the Administrator pursuant to § 54.903(b)(3).

   (b) In the event that a rate-of-return carrier acquires exchanges from
   a price-cap carrier, absent further action by the Commission, the
   exchanges shall receive the same amount of support and be subject to
   the same public interest obligations as specified in § 54.310 or
   § 54.312, as applicable.

   (c) In the event that an entity other than a rate-of-return carrier
   acquires exchanges from a rate-of-return carrier, absent further action
   by the Commission, the carrier will receive model-based support and be
   subject to public interest obligations as specified in § 54.310.

   (d) This section does not alter any Commission rule governing the sale
   or transfer of exchanges, including the definition of “study area” in
   part 36 of this chapter.

   [ 81 FR 24343 , Apr. 25, 2016]

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