FCC Record, Volume 27, No. 7, Pages 5674 to 6652, May 23 - June 15, 2012 Page: 5,989
x, 5674-6652 p. ; 28 cm.View a full description of this book.
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whether intrastate switched access rates must be reduced in 2012 was based on an aggregate
measurement, not on the basis of comparing one tariffed rate to another tariffed rate. Accordingly,
prohibiting increases to specific intrastate switched access rate element rates is inconsistent with a
transition plan based on moving aggregate revenue levels to interstate levels using interstate switched
access rates and rate structure. If a carrier has an intrastate rate for a particular rate element that is below
the rate for its functionally equivalent interstate rate element, it cannot comply with both the prohibition
on increasing rates and the requirement to transition to interstate rates using the interstate switched access
rate structure. Therefore, we clarify that, for carriers required to make reductions to intrastate switched
access rates in 2012 under the intercarrier compensation transition, achievement of unified rate levels and
rate structure overrides the prohibition on rate element increases included in the adopted transition rules.20
8. The rules set forth two approaches for implementing the initial reductions to specified
intrastate switched access rates.2' First, a LEC may elect to establish rates for Transitional Intrastate
Access Service22 using its intrastate access rate structure.23 Alternatively, it may elect to apply its
interstate access rates and rate structures, and for one year assess a transitional per-minute charge on
Transitional Intrastate Access Service end office switching minutes.24 These approaches remain valid, but
should not be read as the only approaches that can be used to transition intrastate switched access rates to
interstate switched access rates. In considering alternative rate and rate structure approaches to reducing
intrastate switched access rates, the overarching principle is compliance with the requirement that a
carrier reduce its overall intrastate switched access rates by the amount calculated in section 51.907(b)(2)
(for price cap carriers) or 51.909(bX2) (for rate-of-return carriers) of the Commission's rules. Thus, we
now clarify that a carrier required to make intrastate rate reductions in 2012 may increase individual
intrastate switched access rate element levels to levels above comparable interstate rate element levels in
2012 without violating the prohibition on raising intrastate switched access rates as long as the overall
reduction principle is satisfied. For example, a carrier could adopt the interstate rate structure for its
intrastate switched access and price out each rate element so that the intrastate revenues will reflect the
reductions required in 2012. A carrier could also partially adopt the interstate rate structure in the first
year and move to the interstate rate structure completely in 2013. Furthermore, we clarify that, for
carriers required to make intrastate switched access rate reductions in 2012, any intrastate switched access
rate element that is below the functionally equivalent interstate switched access rate must be increased to
the interstate level no later than July 1, 2013 to be consistent with the use of aggregate revenue relations
reflected in our transition rules.2s Such increase will not be considered to violate the prohibition on
raising intrastate switched access rates. Accordingly, we revise sections 51.907, 51.909, and 51.911 of
the Commission's rules to reflect these clarifications. An incumbent LEC shall reflect any increased
revenues from increased intrastate rates made in light of this clarification in calculating its Eligible
Recovery under section 51.915(d) or 51.917(d) of the Commission's rules, as appropriate.26
9. Moreover, several carriers and state commissions have inquired as to whether the
transition rules require a proportionate reduction to each intrastate access rate element or whether the
reduction may be targeted to a subset of rate element rates.27 Consistent with the above clarification, the
20 47 C.F.R. 51.907(b)(2)vi). See USF/ICC Transformation Order, 26 FCC Rcd at 17932-33, para. 798.
21 See 47 C.F.R. 51.907(b)(2)(iv) and (v); 47 C.F.R. 51.909(b)(2)(iv) and (v).
22 See 47 C.F.R. 51.903(j).
23 See 47 C.F.R. 51.907(b)(2)(iv); 47 C.F.R. 51.909(b)(2)(iv).
24 See 47 C.F.R. 51.907(b)(2)(v); 47 C.F.R. 51.909(b)(2)(v).
25 See 47 C.F.R. 51.907(b)(2); 47 C.F.R. 51.909(b)(2).
26 47 C.F.R. 51.915(d); 47 C.F.R. 51.917(d).
27 See, e.g., Rybarik May 15 Letter at 2; Benison April 2 Letter at Attach., 1-2.5989
Federal Communications Commission
DA 12-870
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United States. Federal Communications Commission. FCC Record, Volume 27, No. 7, Pages 5674 to 6652, May 23 - June 15, 2012, book, June 2012; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc111171/m1/332/: accessed March 29, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.