Sec.  36.126   Circuit equipment—Category 4.

   (a)  For  the  purpose  of  this section, the term “Circuit Equipment”
   encompasses the Radio Systems and Circuit Equipment contained in Accounts
   2230 through 2232 respectively. It includes central office equipment, other
   than switching equipment and automatic message recording equipment, which is
   used to derive communications transmission channels or which is used for the
   amplification, modulation, regeneration, testing, balancing or control of
   signals transmitted over communications transmission channels. Examples of
   circuit equipment in general use include:

   (1) Carrier telephone and telegraph system terminals.

   (2)  Telephone  and  telegraph  repeaters, termination sets, impedance
   compensators, pulse link repeaters, echo suppressors and other intermediate
   transmission amplification and balancing equipment except that included in
   switchboards.

   (3) Radio transmitters, receivers, repeaters and other radio central office
   equipment except message switching equipment associated with radio systems.

   (4) Composite ringers, line signaling and switching pad circuits.

   (5) Concentration equipment.

   (6) Composite sets and repeating coils.

   (7)  Program  transmission  amplifiers,  monitoring devices and volume
   indicators.

   (8) Testboards, test desks, repair desks and patch bays, including those
   provided for test and control, and for telegraph and transmission testing.

   (b) For apportionment among the operations, the cost of circuit equiment is
   assigned to the following subsidiary categories:

   (1) Exchange Circuit Equipment—Category 4.1. (i) Wideband Exchange Line
   Circuit Equipment—Category 4.11.

   (ii) Exchange Trunk Circuit Equipment (Wideband and Non-Wideband)—Category
   4.12.

   (iii) Exchange Line Circuit Equipment Excluding Wideband—Category 4.13.

   (2) Interexchange Circuit Equipment—Category 4.2. (i) Interexchange Circuit
   Equipment Furnished to Another Company for Interstate Use—Category 4.21.

   (ii) Interexchange Circuit Equipment Used for Wideband Services including
   Satellite and Earth Station Equipment used for Wideband Service—Category
   4.22.

   (iii) All Other Interexchange Circuit Equipment—Category 4.23.

   (3) Host/Remote Message Circuit Equipment—Category 4.3. (4) In addition, for
   the purpose of identifying and separating property associated with special
   services, circuit equipment included in Categories 4.12 (other than wideband
   equipment) 4.13 and 4.23 is identified as either basic circuit equipment,
   i.e., equipment that performs functions necessary to provide and operate
   channels suitable for voice transmission (telephone grade channels), or
   special circuit equipment, i.e., equipment that is peculiar to special
   service  circuits.  Carrier  telephone terminals and carrier telephone
   repeaters are examples of basic circuit equipment is general use, while
   audio program transmission amplifiers, bridges, monitoring devices and
   volume indicators, telegraph carrier terminals and telegraph repeaters are
   examples of special circuit equipment in general use. Cost of exchange
   circuit equipment included in Categories 4.12 and 4.13 and the interexchange
   circuit equipment in Categories 4.21, 4.22 and 4.23 are segregated between
   basic  circuit  equipment  and special circuit equipment only at those
   locations  where amounts of interexchange and exchange special circuit
   equipment are significant. Where such segregation is not made, the total
   costs in these categories are classified as basic circuit equipment.

   (5) Effective July 1, 2001, through June 30, 2006, study areas subject to
   price cap regulation, pursuant to  Sec. 61.41, shall assign the average balances
   of Accounts 2230 through 2232 to the categories/subcategories as specified
   in  Sec.  Sec. 36.126(b)(1) through (b)(4) based on the relative percentage assignment
   of  the  average balances of Accounts 2230 through 2232 costs to these
   categories/subcategories during the twelve month period ending December 31,
   2000.

   (c) Apportionment of Exchange Circuit Equipment Among the Operations:

   (1) Wideband Exchange Line Circuit Equipment—Category 4.11—The cost of
   exchange circuit equipment in this category is determined separately for
   each  wideband  facility.  The  respective  costs are allocated to the
   appropriate operation in the same manner as the related exchange line cable
   and wire facilities described in  Sec. 36.155.

   (2) Exchange Trunk Circuit Equipment (Wideband and Non-Wideband)—Category
   4.12—The cost of exchange circuit equipment associated with this category
   for the study area is allocated to the appropriate operation in the same
   manner as the related exchange trunk cable and wire facilities as described
   in  Sec. 36.155.

   (3) Exchange Line Circuit Equipment Excluding Wideband—Category 4.13—The
   cost of Circuit Equipment associated with exchange line plant excluding
   wideband for the study area is assigned to subcategories and is allocated to
   the appropriate operation in the same manner as the related exchange line
   cable and wire facilities for non-wideband service as described in  Sec. 36.154.

   (4) Effective July 1, 2001, through June 30, 2006, all study areas shall
   apportion  costs  in  the  categories/subcategories,  as  specified in
    Sec.  Sec. 36.126(b)(1) through (b)(4), among the jurisdictions using the relative
   use measurements or factors, as specified in  Sec.  Sec. 36.126(c)(1) through (c)(3)
   for the twelve month period ending December 31, 2000. Direct assignment of
   any  subcategory  of  Category  4.1  Exchange Circuit Equipment to the
   jurisdictions shall be updated annually.

   (d) Apportionment of Interexchange Circuit Equipment among the Operations:
   Procedures to be Used by Interexchange Carriers. (1) Interexchange Circuit
   Equipment Furnished to Another Company for Interstate Use—Category 4.21—This
   category comprises that circuit equipment provided for the use of another
   company as an integral part of its interexchange circuit facilities used
   wholly  for  interstate  services. This category includes such circuit
   equipment as telephone carrier, terminals telegraph carrier terminals, and
   microwave systems used wholly for interstate services. The total cost of the
   circuit equipment in this category for the study area is assigned to the
   interstate operation.

   (2) Interexchange Circuit Equipment Used for Wideband Service—Category
   4.22—This category includes the circuit equipment portion of interexchange
   channels used for wideband services. The cost of interexchange circuit
   equipment  in this category is determined separately for each wideband
   channel and is segregated between message and private line services on the
   basis  of  the  use of the channels provided. The respective costs are
   allocated to the appropriate operation in the same manner as the related
   interexchange cable and wire facilities as described in  Sec. 36.156.

   (3) All Other Interexchange Circuit Equipment—Category 4.23—This category
   includes the cost of all interexchange circuit equipment not assigned to
   Categories 4.21 and 4.22. Interexchange carriers shall freeze the allocation
   factors for Category 4.23 investment at levels reached on December 31, 1985,
   derived by using the procedures in effect at that time. On January 1, 1988,
   and thereafter, that frozen allocation factor shall be applied to each
   interexchange carrier's Category 4.23 investment to derive the interstate
   allocation. On January 1, 1988, and thereafter, the amount of investment
   allocated  to  the  interstate jurisdiction will vary but the relative
   proportion of the total investment that is allocated to the interstate
   jurisdiction will remain frozen at 1985 levels.

   (e) Apportionment of Interexchange Circuit Equipment among the Operations:
   Procedures  To Be Used by Exchange Carriers. (1) Interexchange Circuit
   Equipment Furnished to Another Company for Interstate Use—Category 4.21—This
   category comprises that circuit equipment provided for the use of another
   company as an integral part of its interexchange circuit facilities used
   wholly  for  interstate  services. This category includes such circuit
   equipment as telephone carrier terminals telegraph carrier terminals, and
   microwave systems used wholly for interstate services. The total cost of the
   circuit equipment in this category for the study area is assigned to the
   interstate operation.

   (2) Interexchange Circuit Equipment Used for Wideband Service—Category
   4.22—This category includes the circuit equipment portion of interexchange
   channels used for wideband services. The cost of interexchange circuit
   equipment  in this category is determined separately for each wideband
   channel and is segregated between message and private line services on the
   basis  of  the  use of the channels provided. The respective costs are
   allocated to the appropriate operation in the same manner as the related
   interexchange cable and wire facilities described in  Sec. 36.156.

   (3) All Other Interexchange Circuit Equipment—Category 4.23—This category
   includes the cost of all interexchange circuit equipment not assigned to
   Categories 4.21 and 4.22. The cost of interexchange basic circuit equipment
   used for the following classes of circuits is included in this category:
   Jointly used message circuits, i.e. , message switching plant circuits
   carrying messages from the state and interstate operations; circuits used
   for state private line service; and circuits used for state private line
   services.

   (i)  An  average  interexchange  circuit equipment cost per equivalent
   interexchange telephone termination for all circuits is determined and
   applied to the equivalent interexchange telephone termination counts of each
   of the following classes of circuits: Private Line, State Private Line,
   Message. The cost of interstate private line circuits is assigned directly
   to the interstate operation. The cost of state private line circuits is
   assigned directly to the state operation. The cost of message circuits is
   apportioned between the state and interstate operations on the basis of the
   relative  number of study area conversation-minutes applicable to such
   facilities.

   (ii) [Reserved]

   (iii) The cost of special circuit equipment is segregated among telegraph
   grade private line services and other private line services based on an
   analysis of the use of the equipment and in accordance with  Sec. 36.126(b)(4).
   The special circuit equipment cost assigned to telegraph grade and other
   private line services is directly assigned to the appropriate operations.

   (4) Effective July 1, 2001, through June 30, 2006, all study areas shall
   apportion costs in the categories/subcategories specified in  Sec.  Sec. 36.126(e)(1)
   through (e)(3) among the jurisdictions using relative use measurements or
   factors, as specified in  Sec.  Sec. 36.126(e)(1) through (e)(3) for the twelve month
   period ending December 31, 2000. Direct assignment of any subcategory of
   Category 4.2 Interexchange Circuit Equipment to the jurisdictions shall be
   updated annually.

   (f)  Apportionment  of Host/Remote Message Circuit Equipment Among the
   Operations.

   (1)  Host/Remote Message Circuit Equipment—Category 4.3. This category
   includes message host/remote location circuit equipment for which a message
   circuit  switching  function  is  performed at the host central office
   associated with cable and wire facilities as described in  Sec. 36.152(c).

   (i) The category 4.3 cost of host/remote circuit equipment assigned to
   message services for the study area is apportioned among the exchange,
   intrastate  toll,  and  interstate toll operations on the basis of the
   assignment of host/remote message cable and wire facilities as described in
    Sec. 36.157.

   (ii) [Reserved]

   (2) Effective July 1, 2001, through June 30, 2006, all study areas shall
   apportion costs in the subcategory specified in  Sec. 36.126(f)(1) among the
   jurisdictions using the allocation factor, as specified in  Sec. 36.126(f)(1)(i),
   for this subcategory for the twelve month period ending December 31, 2000.
   Direct assignment of any Category 4.3 Host/Remote Message Circuit Equipment
   to the jurisdictions shall be updated annually.

   [ 52 FR 17229 , May 6, 1987, as amended at  53 FR 33012  Aug. 29, 1988;  66 FR 33205 , June 21, 2001;  69 FR 12550 , Mar. 17, 2004;  71 FR 65745 , Nov. 9, 2006]

Information Origination/Termination (IOT) Equipment