Sec. 51.701  Scope of transport and termination pricing rules.

    (a) The provisions of this subpart apply to reciprocal compensation 
for transport and termination of local telecommunications traffic 
between LECs and other telecommunications carriers.
    (b) Local telecommunications traffic. For purposes of this subpart, 
local telecommunications traffic means:
    (1) Telecommunications traffic between a LEC and a 
telecommunications carrier other than a CMRS provider that originates 
and terminates within a local service area established by the state 
commission; or
    (2) Telecommunications traffic between a LEC and a CMRS provider 
that, at the beginning of the call, originates and terminates within the 
same Major Trading Area, as defined in Sec. 24.202(a) of this chapter.
    (c) Transport. For purposes of this subpart, transport is the 
transmission and any necessary tandem switching of local 
telecommunications traffic subject to section 251(b)(5) of the Act from 
the interconnection point between the two carriers to the terminating 
carrier's end office switch that directly serves the called party, or 
equivalent facility provided by a carrier other than an incumbent LEC.
    (d) Termination. For purposes of this subpart, termination is the 
switching

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of local telecommunications traffic at the terminating carrier's end 
office switch, or equivalent facility, and delivery of such traffic to 
the called party's premises.
    (e) Reciprocal compensation. For purposes of this subpart, a 
reciprocal compensation arrangement between two carriers is one in which 
each of the two carriers receives compensation from the other carrier 
for the transport and termination on each carrier's network facilities 
of local telecommunications traffic that originates on the network 
facilities of the other carrier.