Sec.  54.902   Calculation of Interstate Common Line 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, Interstate Common Line Support
   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  Sec. 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 Interstate Common Line
   Support received by each carrier based on the updated line counts and the
   per-line Interstate Common Line Support, 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 Interstate Common Line Support for those lines during the transition
   period.

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

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

   (b) In the event that a rate-of-return carrier acquires exchanges from a
   price cap carrier that are incorporated into one of the rate-of-return
   carrier's existing study areas, Interstate Common Line Support for the
   transferred exchanges shall be distributed as follows.

   (1) The acquiring carrier may report its updated line counts for the study
   area into which the acquired lines are incorporated in the next quarterly
   line count filing pursuant to  Sec. 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 Interstate Common Line Support received by the acquiring
   carrier based on the updated line counts and the per-line amounts Interstate
   Common Line Support for the study area served by the acquiring carrier. If
   necessary, the Administrator shall develop an average per-line support
   amount to reflect various per-line amounts in multiple disaggregation zones
   served by the acquiring carrier. If the acquiring carrier does not file a
   quarterly update of its line counts, it will not receive Interstate Common
   Line Support for those lines during the transition period.

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

   (3) The acquiring carrier's actual data filed pursuant to  Sec. 54.903(a)(4)
   shall reflect the transfer of exchanges. All post-transaction Interstate
   Common Line Support shall be subject to true up by the Administrator
   pursuant to  Sec. 54.903(b)(3).

   (c) In the event that a rate-of-return carrier acquires exchanges from a
   price cap carrier that are not incorporated into one of the rate-of-return
   carrier's existing study areas, Interstate Common Line Support for the
   transferred exchanges shall be distributed as follows.

   (1) The acquiring rate-of-return may submit to the Administrator a projected
   Interstate Common Line Revenue Requirement for the acquired exchanges for
   the remainder of the funding year in the next quarterly report to the
   Administrator. The Administrator shall distribute Interstate Common Line
   Support pursuant to the partial year projected Interstate Common Line
   Revenue Requirement for the remainder of the funding year. If the acquiring
   carrier does not file a projected Interstate Common Line Revenue
   Requirement, it will not receive Interstate Common Line Support for those
   exchanges during the transition period.

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

   (3) The acquiring carrier's actual data filed pursuant to  Sec. 54.903(a)(4)
   shall reflect the transfer of exchanges. All post-transaction Interstate
   Common Line Support shall be subject to true up by the Administrator
   pursuant to  Sec. 54.903(b)(3)

   (d) In the event that an entity other than a rate-of-return carrier acquires
   exchanges from a rate-of-return carrier, per-line Interstate Common Line
   Support will not transfer.

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

   [ 66 FR 59728 , Nov. 30, 2001, as amended at  68 FR 31623 , May 28, 2003]