Sec.  69.106   Local switching.

   (a) Except as provided in  Sec. 69.118, charges that are expressed in dollars and
   cents per access minute of use shall be assessed by local exchange carriers
   that are not subject to price cap regulation upon all interexchange carriers
   that use local exchange switching facilities for the provision of interstate
   or foreign services.

   (b) The per minute charge described in paragraph (a) of this section shall
   be computed by dividing the projected annual revenue requirement for the
   Local Switching element, excluding any local switching support received by
   the carrier pursuant to  Sec. 54.301 of this chapter, by the projected annual
   access minutes of use for all interstate or foreign services that use local
   exchange switching facilities.

   (c)  If  end users of an interstate or foreign service that uses local
   switching facilities pay message unit charges for such calls in a particular
   exchange,  a credit shall be deducted from the Local Switching element
   charges to such carrier for access service in such exchange. The per minute
   credit for each such exchange shall be multiplied by the monthly access
   minutes for such service to compute the monthly credit to such a carrier.

   (d) If all local exchange subscribers in such exchange pay message unit
   charges, the per minute credit described in paragraph (c) of this section
   shall be computed by dividing total message unit charges to all subscribers
   in a particular exchange in a representative month by the total minutes of
   use that were measured for purposes of computing message unit charges in
   such month.

   (e) If some local exchange subscribers pay message unit charges and some do
   not, a per minute credit described in paragraph (c) of this section shall be
   computed by multiplying a credit computed pursuant to paragraph (d) of this
   section by a factor that is equal to total minutes measured in such month
   for purposes of computing message unit charges divided by the total local
   exchange minutes in such month.

   (f) Except as provided in  Sec. 69.118, price cap local exchange carriers shall
   establish rate elements for local switching as follows:

   (1) Price cap local exchange carriers shall separate from the projected
   annual revenues for the Local Switching element those costs projected to be
   incurred  for  ports (including cards and DS1/voice-grade multiplexers
   required to access end offices equipped with analog switches) on the trunk
   side of the local switch. Price cap local exchange carriers shall further
   identify costs incurred for dedicated trunk ports separately from costs
   incurred for shared trunk ports.

   (i) Price cap local exchange carriers shall recover dedicated trunk port
   costs  identified pursuant to paragraph (f)(1) of this section through
   flat-rated  charges  expressed in dollars and cents per trunk port and
   assessed upon the purchaser of the dedicated trunk terminating at the port.

   (ii) Price cap local exchange carriers shall recover shared trunk port costs
   identified pursuant to paragraph (f)(1) of this section through charges
   assessed upon purchasers of shared transport. This charge shall be expressed
   in dollars and cents per access minute of use. The charge shall be computed
   by dividing the projected costs of the shared ports by the historical annual
   access  minutes  of  use calculated for purposes of recovery of common
   transport costs in  Sec. 69.111(c).

   (2) Price cap local exchange carriers shall recover the projected annual
   revenues for the Local Switching element that are not recovered in paragraph
   (f)(1) of this section through charges that are expressed in dollars and
   cents per access minute of use and assessed upon all interexchange carriers
   that use local exchange switching facilities for the provision of interstate
   or foreign services. The maximum charge shall be computed by dividing the
   projected remainder of the annual revenues for the Local Switching element
   by the historical annual access minutes of use for all interstate or foreign
   services that use local exchange switching facilities.

   (g) A local exchange carrier may recover signaling costs associated with
   call  setup  through  a  call setup charge imposed upon all interstate
   interexchange carriers that use that local exchange carrier's facilities to
   originate or terminate interstate interexchange or foreign services. This
   charge must be expressed as dollars and cents per call attempt and may be
   assessed on originating calls handed off to the interexchange carrier's
   point of presence and on terminating calls received from an interexchange
   carrier's point of presence, whether or not that call is completed at the
   called location. Local exchange carriers may not recover through this charge
   any costs recovered through other rate elements.

   (h) Except as provided in  Sec. 69.118, non-price cap local exchange carriers may
   establish rate elements for local switching as follows:

   (1) Non-price cap local exchange carriers may separate from the projected
   annual revenue requirement for the Local Switching element those costs
   projected to be incurred for ports (including cards and DS1/voice-grade
   multiplexers required to access end offices equipped with analog switches)
   on the trunk side of the local switch. Non-price cap local exchange carriers
   electing to assess these charges shall further identify costs incurred for
   dedicated trunk ports separately from costs incurred for shared trunk ports.

   (i) Non-price cap local exchange carriers electing to assess trunk port
   charges shall recover dedicated trunk port costs identified pursuant to
   paragraph (h)(1) of this section through flat-rated charges expressed in
   dollars and cents per trunk port and assessed upon the purchaser of the
   dedicated trunk terminating at the port.

   (ii) Non-price cap local exchange carriers electing to assess trunk port
   charges  shall  recover shared trunk port costs identified pursuant to
   paragraph (h)(1) of this section through charges assessed upon purchasers of
   shared transport. This charge shall be expressed in dollars and cents per
   access minute of use. The charge shall be computed by dividing the projected
   costs of the shared ports by the historical annual access minutes of use
   calculated for purposes of recovery of common transport costs in  Sec. 69.111(c).

   (2) Non-price cap local exchange carriers shall recover the projected annual
   revenue requirement for the Local Switching element that are not recovered
   in paragraph (h)(1) of this section through charges that are expressed in
   dollars  and  cents  per  access  minute  of use and assessed upon all
   interexchange carriers that use local exchange switching facilities for the
   provision of interstate or foreign services. The maximum charge shall be
   computed  by  dividing  the  projected remainder of the annual revenue
   requirement for the Local Switching element by the historical annual access
   minutes  of  use for all interstate or foreign services that use local
   exchange switching facilities.

   [ 52 FR 37310 , Oct. 6, 1987, as amended at  56 FR 33881 , July 24, 1991;  62 FR 31933 , June 11, 1997;  62 FR 40463 , July 29, 1997;  66 FR 59731 , Nov. 30,
   2001]