Goto Section: 64.804 | 64.902 | Table of Contents

FCC 64.901
Revised as of October 1, 2005
Goto Year:2004 | 2006
Sec.  64.901   Allocation of costs.

   (a) Carriers required to separate their regulated costs from nonregulated
   costs shall use the attributable cost method of cost allocation for such
   purpose.

   (b)  In  assigning  or  allocating costs to regulated and nonregulated
   activities, carriers shall follow the principles described herein.

   (1) Tariffed services provided to a nonregulated activity will be charged to
   the  nonregulated  activity  at the tariffed rates and credited to the
   regulated revenue account for that service. Nontariffed services, offered
   pursuant to a section 252(e) agreement, provided to a nonregulated activity
   will be charged to the nonregulated activity at the amount set forth in the
   applicable interconnection agreement approved by a state commission pursuant
   to section 252(e) and credited to the regulated revenue account for that
   service.

   (2) Costs shall be directly assigned to either regulated or nonregulated
   activities whenever possible.

   (3)  Costs  which  cannot  be directly assigned to either regulated or
   nonregulated activities will be described as common costs. Common costs
   shall be grouped into homogeneous cost categories designed to facilitate the
   proper allocation of costs between a carrier's regulated and nonregulated
   activities. Each cost category shall be allocated between regulated and
   nonregulated activities in accordance with the following hierarchy:

   (i) Whenever possible, common cost categories are to be allocated based upon
   direct analysis of the origin of the cost themselves.

   (ii) When direct analysis is not possible, common cost categories shall be
   allocated based upon an indirect, cost-causative linkage to another cost
   category (or group of cost categories) for which a direct assignment or
   allocation is available.

   (iii) When neither direct nor indirect measures of cost allocation can be
   found, the cost category shall be allocated based upon a general allocator
   computed by using the ratio of all expenses directly assigned or attributed
   to regulated and nonregulated activities.

   (4) The allocation of central office equipment and outside plant investment
   costs between regulated and nonregulated activities shall be based upon the
   relative regulated and nonregulated usage of the investment during the
   calendar year when nonregulated usage is greatest in comparison to regulated
   usage during the three calendar years beginning with the calendar year
   during which the investment usage forecast is filed.

   (c)  A  telecommunications  carrier  may not use services that are not
   competitive to subsidize services subject to competition. Services included
   in the definition of universal service shall bear no more than a reasonable
   share of the joint and common costs of facilities used to provide those
   services.

   [ 52 FR 6560 , Mar. 4, 1987, as amended at  52 FR 39534 , Oct. 22, 1987;  54 FR 49762 , Dec. 1, 1989;  62 FR 45588 , Aug. 28, 1997;  67 FR 5702 , Feb. 6, 2002]


Goto Section: 64.804 | 64.902

Goto Year: 2004 | 2006
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