Sec. 61.41  Price cap requirements generally.

    (a) Sections 61.42 through 61.49 shall apply as follows:

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    (1) To dominant interexchange carriers, as specified by Commission 
order;
    (2) To such local exchange carriers as specified by Commission 
order, and to all local exchange carriers, other than average schedule 
companies, that are affiliated with such carriers; and
    (3) On an elective basis, to local exchange carriers, other than 
those specified in paragraph (a)(2) of this section, that are neither 
participants in any Association tariff, nor affiliated with any such 
participants, except that affiliation with average schedule companies 
shall not bar a carrier from electing price cap regulation provided the 
carrier is otherwise eligible.
    (b) If a telephone company, or any one of a group of affiliated 
telephone companies, files a price cap tariff in one study area, that 
telephone company and its affiliates, except its average schedule 
affiliates, must file price cap tariffs in all their study areas.
    (c) The following rules apply to telephone companies subject to 
price cap regulation, as that term is defined in Sec. 61.3(w), which are 
involved in mergers, acquisitions, or similar transactions.
    (1) Any telephone company subject to price cap regulation that is a 
party to a merger, acquisition, or similar transaction shall continue to 
be subject to price cap regulation notwithstanding such transaction.
    (2) Where a telephone company subject to price cap regulation 
acquires, is acquired by, merges with, or otherwise becomes affiliated 
with a telephone company that is not subject to price cap regulation, 
the latter telephone company shall become subject to price cap 
regulation no later than one year following the effective date of such 
merger, acquisition, or similar transaction and shall accordingly file 
price cap tariffs to be effective no later than that date in accordance 
with the applicable provisions of this part 61.
    (3) Notwithstanding the provisions of Sec. 61.41(c)(2) above, when a 
telephone company subject to price cap regulation acquires, is acquired 
by, merges with, or otherwise becomes affiliated with a telephone 
company that qualifies as an `average schedule' company, the latter 
company may retain its `average schedule' status or become subject to 
price cap regulation in accordance with Sec. 69.3(i)(3) and the 
requirements referenced in that section.
    (d) Local exchange carriers that become subject to price cap 
regulation as that term is defined in Sec. 61.3(w) of this chapter shall 
not be eligible to withdraw from such regulation.

[ 55 FR 42382 , Oct. 19, 1990;  55 FR 50558 , Dec. 7, 1990, as amended at  56 FR 55239 , Oct. 25, 1991]