Goto Section: 54.314 | 54.316 | Table of Contents

FCC 54.315
Revised as of October 1, 2005
Goto Year:2004 | 2006
Sec.  54.315   Disaggregation and targeting of high-cost support.

   (a) On or before May 15, 2002, all rural incumbent local exchange carriers
   and rate-of-return carriers for which high-cost universal service support
   pursuant to  Sec.  Sec. 54.301, 54.303, and/or 54.305 of this subpart, subpart K of
   this part, and/or part 36 subpart F is available must select a
   disaggregation path as described in paragraphs (b), (c), or (d) of this
   section. In study areas in which a competitive carrier was designated as a
   competitive eligible telecommunications carrier prior to June 19, 2001, the
   rural incumbent local exchange carrier or rate-of-return carrier may only
   disaggregate support pursuant to paragraphs (b), (c), or (d)(1)(iii) of this
   section. A rural incumbent local exchange carrier or rate-of-return carrier
   failing to select a disaggregation path as described in paragraphs (b), (c),
   or (d) of this section by May 15, 2002, will not be permitted to
   disaggregate and target federal high-cost support unless ordered to do so by
   a state commission as that term is defined in  Sec. 54.5.

   (b) Path 1: Carriers Not Disaggregating and Targeting High-Cost Support:

   (1) A carrier may certify to the state commission that it will not
   disaggregate and target high-cost universal service support.

   (2) A carrier's election of this path becomes effective upon certification
   by the carrier to the state commission.

   (3) This path shall remain in place for such carrier for at least four years
   from the date of certification to the state commission except as provided in
   paragraph (b)(4) of this section.

   (4) A state commission may require, on its own motion, upon petition by an
   interested party, or upon petition by the rural incumbent local exchange
   carrier or rate-of-return carrier, the disaggregation and targeting of
   support under paragraphs (c) or (d) of this section.

   (5) A carrier not subject to the jurisdiction of a state, e.g., certain
   tribally owned carriers, may select Path 1, but must certify to the Federal
   Communications Commission as described in paragraphs (1) through (4) of this
   section.

   (c) Path 2: Carriers Seeking Prior Regulatory Approval for the
   Disaggregation and Targeting of Support:

   (1) A carrier electing to disaggregate and target support under this
   paragraph must file a disaggregation and targeting plan with the state
   commission.

   (2) Under this paragraph a carrier may propose any method of disaggregation
   and targeting of support consistent with the general requirements detailed
   in paragraph (e) of this section.

   (3) A disaggregation and targeting plan under this paragraph becomes
   effective upon approval by the state commission.

   (4) A carrier shall disaggregate and target support under this path for at
   least four years from the date of approval by the state commission except as
   provided in paragraph (c)(5) of this section.

   (5) A state commission may require, on its own motion, upon petition by an
   interested party, or upon petition by the rural incumbent local exchange
   carrier or rate-of-return carrier, the disaggregation and targeting of
   support in a different manner.

   (6) A carrier not subject to the jurisdiction of a state, e.g., certain
   tribally owned carriers, may select Path 2, but must seek approval from the
   Federal Communications Commission as described in paragraphs (c)(1) through
   (5) of this section.

   (d) Path 3: Self-Certification of the Disaggregation and Targeting of
   Support:

   (1) A carrier may file a disaggregation and targeting plan with the state
   commission along with a statement certifying each of the following:

   (i) It has disaggregated support to the wire center level; or

   (ii) It has disaggregated support into no more than two cost zones per wire
   center; or

   (iii) That the carrier's disaggregation plan complies with a prior
   regulatory determination made by the state commission.

   (2) Any disaggregation plan submitted pursuant to this paragraph must meet
   the following requirements:

   (i) The plan must be supported by a description of the rationale used,
   including the methods and data relied upon to develop the disaggregation
   zones, and a discussion of how the plan complies with the requirements of
   this paragraph. Such filing must provide information sufficient for
   interested parties to make a meaningful analysis of how the carrier derived
   its disaggregation plan.

   (ii) The plan must be reasonably related to the cost of providing service
   for each disaggregation zone within each disaggregated category of support.

   (iii) The plan must clearly specify the per-line level of support for each
   category of high-cost universal service support provided pursuant to
    Sec.  Sec. 54.301, 54.303, and/or 54.305 and/or part 36, subpart F of this chapter in
   each disaggregation zone.

   (iv) If the plan uses a benchmark, the carrier must provide detailed
   information explaining what the benchmark is and how it was determined. The
   benchmark must be generally consistent with how the total study area level
   of support for each category of costs is derived to enable a competitive
   eligible telecommunications carrier to compare the disaggregated costs used
   to determine support for each cost zone.

   (3) A carrier's election of this path becomes effective upon certification
   by the carrier to the state commission.

   (4) A carrier shall disaggregate and target support under this path for at
   least four years from the date of certification to the state commission
   except as provided in paragraph (d)(5) of this section.

   (5) A state commission may require, on its own motion, upon petition by an
   interested party, or upon petition by the rural incumbent local exchange
   carrier, modification to the disaggregation and targeting of support
   selected under this path.

   (6) A carrier not subject to the jurisdiction of a state, e.g., certain
   tribally owned carriers, may select Path 3, but must certify to the Federal
   Communications Commission as described in paragraphs (d)(1) through (5) of
   this section.

   (e) Additional Procedures Governing the Operation of Path 2 and Path 3:
   Disaggregation and targeting plan adopted under paragraphs (c) or (d) of
   this section shall be subject to the following general requirements:

   (1) Support available to the carrier's study area under its disaggregation
   plan shall equal the total support available to the study area without
   disaggregation.

   (2) The ratio of per-line support between disaggregation zones for each
   disaggregated category of support shall remain fixed over time, except as
   changes are allowed pursuant to paragraph (c) and (d) of this section.

   (3) The ratio of per-line support shall be publicly available.

   (4) Per-line support amounts for each disaggregation zone shall be
   recalculated whenever the carrier's total annual support amount changes
   using the changed support amount and lines at that point in time.

   (5) Per-line support for each category of support in each disaggregation
   zone shall be determined such that the ratio of support between
   disaggregation zones is maintained and that the product of all of the
   carrier's lines for each disaggregation zone multiplied by the per-line
   support for those zones when added together equals the sum of the carrier's
   total support.

   (6) Until a competitive eligible telecommunications carrier is certified in
   a study area, monthly payments to the incumbent carrier will be made based
   on total annual amounts for its study area divided by 12.

   (7) When a competitive eligible telecommunications carrier is certified in a
   study area, per-line amounts used to determine the competitive eligible
   telecommunications carrier's disaggregated support shall be based on the
   incumbent carrier's then-current total support levels, lines, disaggregated
   support relationships, and, in the case of support calculated under subpart
   K of this part, customer classes.

   (f) Submission of Information to the Administrator:

   (1) A carrier certifying under paragraph (b) of this section that it will
   not disaggregate and target high-cost universal service support shall submit
   to the Administrator a copy of the certification submitted to the state
   commission, or the Federal Communications Commission, when not subject to
   state jurisdiction.

   (2) A carrier electing to disaggregate and target support under paragraph
   (c) of this section shall submit to the Administrator a copy of the order
   approving the disaggregation and targeting plan submitted by the carrier to
   the state commission, or the Federal Communications Commission, when not
   subject to state jurisdiction, and a copy of the disaggregation and
   targeting plan approved by the state commission or the Federal
   Communications Commission.

   (3) A carrier electing to disaggregate and target support under paragraph
   (d) of this section shall submit to the Administrator a copy of the
   self-certification plan including the information submitted to the state
   commission pursuant to paragraphs (d)(2)(i) and (d)(2)(iv) of this section
   or the Federal Communications Commission.

   (4) A carrier electing to disaggregate and target support under paragraph
   (c) or (d) of this section must submit to the Administrator maps which
   precisely identify the boundaries of the designated disaggregation zones of
   support within the carrier's study area.

   [ 66 FR 30089 , June 5, 2001, as amended at  66 FR 59727 , Nov. 30, 2001]


Goto Section: 54.314 | 54.316

Goto Year: 2004 | 2006
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