Sec. 64.1301  Payphone compensation.

    (a) Each payphone service provider eligible to receive compensation 
shall be paid $45.85 per payphone per month for originating access code 
and toll-free calls.
    (b) This compensation shall be paid by interexchange carriers (IXCs) 
that earn annual toll revenues in excess of $100 million, as reported in 
the FCC staff report entitled ``Long Distance Market Shares.'' Each 
individual IXC's compensation obligation shall be set in accordance with 
its relative share of toll revenues among IXCs required to pay 
compensation. For example, if total toll revenues of IXCs required to 
pay compensation is $50 billion, and one of these IXCs had $5 billion of 
total toll revenues, the IXC must pay $4.585 per payphone per month.
    (c) Initial compensation obligations are set forth in Appendix B of 
the Commission's Second Report and Order in CC Docket No. 91-35, 
released May 8, 1992. Compensation obligations shall be adjusted 
periodically if the operational status of any eligible IXC changes or in 
accordance with revised toll revenue data. In either such event, the 
Common Carrier Bureau shall issue a public notice showing the revised 
compensation obligations. These revised obligations shall become 
effective on the date specified in the public notice.
    (d) IXCs obligated to pay compensation and payphone service 
providers are responsible for establishing their own billing or payment 
arrangements.
    (e) LECs shall provide IXCs paying compensation under paragraphs (b) 
and (c) of this section with a list each quarter of all telephone lines 
receiving customer-owned coin-operated telephone (COCOT) service in the 
LEC's region as of the date the list was generated.
    (f) A competitive payphone owner (PPO) that seeks compensation for 
competitive payphones that are not included on a LEC COCOT list 
satisfies its obligation to provide alternative reasonable verification 
to an IXC if it provides to that IXC:
    (1) A notarized affidavit, signed by the president of the company, 
attesting that each of the payphones for which the PPO seeks 
compensation is a competitive payphone that was in working order as of 
the last day of the compensation period); and
    (2) Corroborating evidence that each such payphone is owned by the 
PPO seeking compensation and was in working order on the last day of the 
compensation period. Corroborating evidence shall include, at a minimum, 
the telephone bill for the last month of the billing quarter indicating 
use of a line screening service.

[ 57 FR 21040 , May 18, 1992, as amended at  58 FR 57750 , Oct. 27, 1993;  60 FR 49234 , Sept. 22, 1995;  61 FR 52323 , Oct. 7, 1996;  61 FR 54345 , Oct. 
18, 1996]

    Effective Date Note: At  61 FR 52324 , Oct. 7, 1996, Sec. 64.1301 was 
removed, effective Oct. 7, 1997.