[Federal Register Volume 59, Number 43 (Friday, March 4, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4672]
[[Page Unknown]]
[Federal Register: March 4, 1994]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 61 and 69
[CC Docket No. 91-213, FCC 94-9]
Transport Rate Structure and Pricing
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: This order modifies certain features of the price cap
regulatory system applicable to local exchange carriers (LECs) to
complement the FCC's recent restructure of the LECs' local transport
rates. Specifically, the order moves transport services, including all
the transmission-related elements, the tandem switching charge, and the
interconnection charge, out of the price cap basket for traffic
sensitive services, and places them into a combined ``trunking'' basket
containing transport and special access services. The order realigns
the service categories and subcategories within the trunking basket,
and adapts the pricing bands applicable to these categories and
subcategories, to reflect the similarities between certain special
access and flat-rated transport services, and to accommodate the new
density zone pricing system that the Commission adopted for both
special access and transport. These rule changes encourage the LECs to
align their transport rates to reflect more closely how costs are
incurred, thus promoting more efficient usage and deployment of the
country's telecommunications networks, advancing competition in both
the long-distance and local access markets, and ultimately reducing
access charges and long-distance rates and stimulating the economy by
increasing demand for these services.
EFFECTIVE DATE: March 4, 1994.
FOR FURTHER INFORMATION CONTACT:
David L. Sieradzki, Common Carrier Bureau, Policy & Program Planning
Division, 202-632-1304.
SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's
Second Report and Order in CC Docket No. 91-213, adopted on January 19,
1994 and released on January 31, 1994. The complete text of this Second
Report and Order is available for inspection and copying during normal
business hours in the FCC Reference Center, 1919 M St. NW., room 230,
Washington, DC 20554.
Synopsis of Second Report and Order
1. The Commission adopts its proposal to remove the transport
service categories from the traffic sensitive basket and place them
into a combined basket that also contains special access services. The
Commission renames this merged basket the ``trunking basket.'' The
Commission is placing the tandem switching charge in the newly formed
trunking basket, and keeping it in the same service category as tandem-
switched transport. The Commission is placing the interconnection
charge service category in the trunking basket.
2. The Commission is adopting a modified version of its proposal in
the Further Notice in this proceeding, 57 FR 54205 (Nov. 17, 1992), on
the arrangement of service categories within the newly formed trunking
basket. The Commission concludes that flat-rated transport (entrance
facilities, direct-trunked transport, and dedicated signalling
transport) should be incorporated into the corresponding special access
service categories. Thus, demand for voice grade flat-rated transport
will be assigned to the existing voice grade-WATS-metallic-telegraph
service category in the current special access basket for the purposes
of computing the service band index (SBI) and pricing bands for that
category. Demand for DS1 and DS3 flat-rated transport will be assigned,
respectively, to the DS1 and DS3 subcategories of the high capacity-DDS
service category in the current special access basket for purposes of
computing the SBIs and bands for those subcategories. Tandem-switched
transport (including the tandem switching element) and the
interconnection charge will be separate service categories in the
trunking basket.
3. The Commission concludes that the density pricing zone
subcategories within the flat-rated transport service category should
be incorporated into the existing zone subcategories within the
existing DS3 and DS1 special access subcategories, with one exception.
In some cases, a LEC might implement density zone pricing for transport
in a different tariff year than it implemented density zone pricing for
special access. In such circumstances, the Commission will require LECs
to retain separate zone bands for special access and flat-rated
transport services until the end of the tariff year following the
tariff year in which density pricing was implemented for the later
service. After that time, the zone bands for special access and
transport can be consolidated.
4. The Commission is not modifying the pricing bands applicable to
the transport or special access service categories at this time. The
service category bands constrain the LECs' ability to offset rate
reductions in some categories with rate increases in other categories.
5. The Commission is setting forth the details of establishing the
indexes and banding limits for the new trunking basket and the
realigned service categories within that basket. First, the 2% upper
and 5% lower bands for tandem-switched transport and the 0% upper band
for the interconnection charge apply to changes from the initial rates
for these services as of the transport rate restructure, regardless of
whether the LECs raised or lowered their local transport rates prior to
the rate restructure. (``Initial rates'' refers to the rates that
became effective as a result of the September 1, 1993 initial
restructured transport tariff filing, or rates that subsequently go
into effect as the result of the mid-course correction.) Thus, the LECs
should set their initial bands and SBIs for the tandem-switched
transport and interconnection charge service categories using the
baseline of the initial restructured rate levels.
6. Because 47 CFR part 61 does not explicitly address the manner in
which service categories are to be merged, the Commission adopts
transition rules governing how the initial banding limits and indexes
should be set for the new trunking basket and the realigned service
categories within that basket. The initial degree of pricing
flexibility for the trunking basket will be set by taking into account
both the pricing flexibility currently available in the special access
basket and the pricing flexibility available in the traffic sensitive
basket (which currently includes transport). Thus, while the pre-
existing actual price index (API) for the special access basket will be
used as the initial API for the trunking basket, the PCI for the
trunking basket should be set as follows. LECs should calculate the
ratio between the pre-existing PCI for the special access basket and
the API for that basket, and the ratio between the pre-existing PCI for
the traffic sensitive basket and the API for that basket. A weighted
average of these ratios should be derived using the base period revenue
weights of the special access and transport services included in the
trunking basket, respectively. This weighted average should be
multiplied by the pre-existing API for the special access basket to
derive the PCI for the trunking basket. (Base period demand for flat-
rated transport elements (i.e., demand for the 1992 base year) should
correspond with the historical demand used in computing the initial
interconnection charge. The rates used in this formula should be the
rates effective on the date that the transport rate restructure became
effective, or rates that subsequently go into effect as the result of
the mid-course correction.)
7. Similarly, adjustments to the upper and lower pricing bands
applicable to the existing voice grade and high capacity/DDS service
categories and the DS1 and DS3 subcategories are necessary to reflect
the incorporation of comparable flat-rated transport rate elements.
While the SBIs for these categories are to remain the same, the upper
and lower bands should reflect a weighted average of the pre-existing
upper and lower bands for the special access services and the 5% upper
and lower bands for the flat-rated transport services. This weighted
average should be calculated using the base period revenue weights of
the special access and transport services included in each service
category and subcategory. A comparable procedure will be used to
incorporate transport services into a density pricing zone category
that has already been established for special access services (or vice
versa).
8. The changes adopted in the order necessitate adjustments to the
price cap indexes. Accordingly, the Commission directs all LECs subject
to the price cap rules to recalculate their price cap indexes pursuant
to the decisions in the order. The LECs should file such recalculated
indexes with the Commission in a special filing not accompanied by rate
changes. The Commission delegates authority to the Chief, Common
Carrier Bureau, to specify the format and timing of this filing. In
addition, such recalculated indexes should be used as the basis of any
price cap filing that changes rates of services in the trunking or
traffic sensitive baskets.
9. Finally, the Commission clarifies some miscellaneous
implementation matters. First, the Commission clarifies that its
decision in the Second Reconsideration Order, 58 FR 45266 (Aug. 27,
1993) (requiring use of historical demand for all components of the
formula for computing the inter-connection charge) applies only to
price cap LECs. Rate-of-return LECs continue to be subject to 47 CFR
61.38 and 61.39, and should continue to use projected demand to set
transport rates. Consistent with the First Reconsideration Order, 58 FR
41184 (Aug. 3, 1993), however, these projections should only forecast
demand growth, and should not attempt to forecast IXCs'
reconfigurations in response to the transport rate restructure. Second,
due to the difficulty of applying non-premium charges to flat-rate
transport elements, the Commission modifies its rules to clarify that
non-premium charges must be established only for the interconnection
charge, and not for the facility-based transport elements. Third, the
Commission modifies the rules to clarify that the LECs must waive
certain non-recurring charges for a six-month period following the
effective date of their restructured transport tariffs. Finally, the
Commission is making limited technical changes to 47 CFR part 69.
10. In the Further Notice in this proceeding, 57 FR 54205 (Nov. 17,
1992), the Commission certified that the proposed rule changes would
not have a significant economic impact on a substantial number of small
business entities, as defined by section 601(3) of the Regulatory
Flexibility Act. Neither the Chief Counsel for Advocacy of the Small
Business Administration nor any commenting party disagreed with that
analysis. The Secretary shall send a copy of this Report and Order,
including the certification, to the Chief Counsel for Advocacy of the
Small Business Administration in accordance with section 605(b) of the
Regulatory Flexibility Act, Public Law No. 69-354, 94 Stat. 1164, 5
U.S.C. 601 et seq. (1981).
Ordering Clauses
11. Accordingly, it is ordered that pursuant to authority contained
in sections 1, 4(i) and (j), 201-205, 220, and 403 of the
Communications Act of 1934, as amended, 47 U.S.C. Secs. 151, 154(i) and
(j), 201-205, 220, and 403, parts 61 and 69 of the Commission's rules
are Amended as set forth below.
12. It is further ordered that the policies and rules adopted
herein shall be effective upon publication in the Federal Register.
Because the initial restructured transport rates went into effect on
December 30, 1993, thus allowing LECs subject to price cap regulation
to propose rate changes that do not comply with the policies adopted
herein in the absence of these rule changes, good cause exists to make
these rules effective less than 30 days from publication in the Federal
Register.
13. It is further ordered that the Chief, Common Carrier Bureau is
delegated the authority specified herein.
List of Subjects in 47 CFR Parts 61 and 69
Communications common carriers, Reporting and recordkeeping
requirements. Telephone.
Federal Communications Commission.
William F. Caton,
Acting Secretary.
Amendatory Text
47 CFR parts 61 and 69 are amended as follows:
PART 61--TARIFFS
1. The authority citation for part 61 continues to read as follows:
Authority: Sec. 4, 48 Stat. 1066, as amended; 47 U.S.C. 154.
Interpret or apply sec. 203, 48 Stat. 1070; 47 U.S.C. 203.
2. Section 61.3 is amended by redesignating paragraphs (jj) and
(kk) as paragraphs (kk) and (ll), respectively, and adding a new
paragraph (jj), to read as follows:
Sec. 61.3 Definitions.
* * * * *
(jj) Tariff year. The period from the day in a calendar year on
which a carrier's annual access tariff filing is scheduled to become
effective through the preceding day of the subsequent calendar year.
* * * * *
3. Section 61.42 is amended by removing paragraphs (e)(1)(iii),
(e)(1)(iv), and (e)(1)(v); redesignating paragraphs (e)(1)(vi) and
(e)(1)(vii) as paragraphs (e)(1)(iii) and (e)(1)(iv), respectively;
revising paragraph (d)(3), redesignated paragraph (e)(1)(iii), the
introductory text of paragraph (e)(2), paragraph (e)(2)(i), paragraph
(e)(2)(iii), and paragraph (e)(2)(iv); and adding paragraphs (e)(2)(v)
and (e)(2)(vi), to read as follows:
Sec. 61.42 Price cap baskets and service categories.
* * * * *
(d) * * *
(3) A basket for trunking services as described in Secs. 69.110,
69.111, 69.112, 69.114, 69.124, and 69.125 of this chapter;
* * * * *
(e)(1) * * *
(iii) Data base access services; and
* * * * *
(2) The trunking basket shall contain such transport and special
access services as the Commission shall permit or require, including
the following service categories and subcategories:
(i) Voice grade entrance facilities, voice grade direct-trunked
transport, voice grade dedicated signalling transport, voice grade
special access, WATS special access, metallic special access, and
telegraph special access services;
* * * * *
(iii) High capacity flat-rated transport, high capacity special
access, and DDS services, including the following service
subcategories:
(A) DS1 entrance facilities, DS1 direct-trunked transport, DS1
dedicated signalling transport, and DS1 special access services; and
(B) DS3 entrance facilities, DS3 direct-trunked transport, DS3
dedicated signalling transport, and DS3 special access services;
(iv) Wideband data and wideband analog services;
(v) Tandem-switched transport, as described in Sec. 69.111 of this
chapter; and
(vi) Interconnection charge, as described in Sec. 69.124 of this
chapter.
* * * * *
4. Section 61.47 is amended as follows:
a. Paragraphs (f) and (g) are redesignated as paragraphs (f)(1) and
(f)(2).
b. Paragraph (h)(1) is redesignated as paragraph (g)(1).
(c) Paragraph (i) is redesignated as paragraph (g)(4).
d. Paragraphs (e)(2) and (e)(3) are redesignated as paragraphs
(g)(2) and (g)(3) and are revised.
e. Paragraph (h) is revised.
f. Headings are added to paragraphs (f) and (g).
g. The designation (1) in paragraph (e) is removed and paragraph
(e) is revised.
(h) Add the words ``or subcategories'' after the words ``service
categories'' in paragraphs (a) and (b).
i. Add the words ``or subcategory'' after the words ``service
category'' in paragraphs (a) and (c).
j. Remove the words ``Notwithstanding paragraphs (e) and (f) of
this section'' from redesignated paragraph (f)(2) and add in their
place ``Notwithstanding paragraph (f)(1) of this section''.
k. Remove the words ``Notwithstanding paragraph (e) of this
section,'' from redesignated paragraphs (g)(1) and (g)(4) and
capitalizing the word ``the'' in each sentence when the phrase is
removed.
As amended above, Sec. 61.47 reads as follows:
Sec. 61.47 Adjustments to the SBI; pricing bands.
* * * * *
(e) Pricing bands shall be established each tariff year for each
service category and subcategory within a basket. Except as provided in
paragraphs (f), (g), and (h) of this section, each band shall limit the
pricing flexibility of the service category or subcategory, as
reflected in its SBI, to an annual increase or decrease of five
percent, relative to the percentage change in the PCI for that basket,
measured from the levels in effect on the last day of the preceding
tariff year.
(f) Dominant interexchange carriers.
* * * * *
(g) Local exchange carriers--Service categories and subcategories.
* * * * *
(2) The upper pricing band for the tandem-switched transport
service category shall limit the annual upward pricing flexibility for
this service category, as reflected in its SBI, to two percent,
relative to the percentage change in the PCI for the trunking basket,
measured from the levels in effect on the last day of the preceding
tariff year. The lower pricing band for the tandem-switched transport
service category shall limit the annual downward pricing flexibility
for this service category, as reflected in its SBI, to five percent,
relative to the percentage change in the PCI for the trunking basket,
measured from the levels in effect on the last day of the preceding
tariff year.
(3) The upper pricing band for the interconnection charge service
category shall limit the annual upward pricing flexibility for this
service category, as reflected in its SBI, to zero percent, relative to
the percentage change in the PCI for the trunking basket, measured from
the levels in effect on the last day of the preceding tariff year.
There shall be no lower pricing band for the interconnection charge.
* * * * *
(h) Local exchange carriers--Density pricing zones.
(1) In addition to the requirements of paragraphs (g)(1) and (g)(2)
of this section, those local exchange carriers subject to price cap
regulation that have established density pricing zones pursuant to
Sec. 69.123 of this chapter shall use the methodology set forth in
paragraphs (a) through (d) of this section to calculate separate
subindexes in each zone for each of the following groups of services:
(i) DS1 entrance facilities, DS1 direct-trunked transport, DS1
dedicated signalling transport, and DS1 special access services;
(ii) DS3 entrance facilities, DS3 direct-trunked transport, DS3
dedicated signalling transport, and DS3 special access services;
(iii) Voice grade entrance facilities, voice grade direct-trunked
transport, and voice grade dedicated signalling transport, and (if the
Commission, by order, designates such services as subject to
competition) voice grade special access;
(iv) Tandem-switched transport; and
(v) Such other special access services that the Commission may
designate by order.
(2) The annual pricing flexibility for each of the subindexes
specified in paragraph (h)(1) of this section shall be limited to an
annual increase of five percent or an annual decrease of ten percent,
relative to the percentage change in the PCI for the trunking basket,
measured from the levels in effect on the last day of the preceding
tariff year.
5. Section 61.48 is amended by revising paragraphs (g) and (h) and
adding paragraph (i), to read as follows:
Sec. 61.48 Transition rules for price cap formula calculations.
* * * * *
(g) Local Transport Restructure--Initial Rates. Local exchange
carriers subject to price cap regulation shall set initial transport
rates, as defined in Sec. 69.2(tt) of this chapter, according to the
requirements set forth in Secs. 69.108, 69.110, 69.111, 69.112, 69.124,
and 69.125 of this chapter.
(h) Local Transport Restructure--Price Cap Transition Rules--(1)
Definitions. The following definitions apply for purposes of paragraph
(h) of this section:
Effective date is March 4, 1994.
Initial restructured rates are rates that are (or should have been)
effective on the transport restructure date;
Revenue weight of a given group of services included in a basket,
service category, or subcategory is the ratio of base period demand for
the given service rate elements included in the basket, service
category, or subcategory priced at initial restructured rates, to the
base period demand for the entire group of rate elements comprising the
basket, service category, or subcategory priced at initial restructured
rates; and
Transport restructure date is the date on which local exchange
carriers' initial transport rates, as defined in Sec. 69.2(tt) of this
chapter, became effective.
(2) Trunking Basket PCI and API. (i) On the effective date, the PCI
value for the trunking basket, as defined in Sec. 61.42(d)(3), shall be
computed by multiplying the API value for the special access basket on
the day preceding the transport restructure date, by a weighted average
of the following:
(A) The ratio of the PCI value that applied to the special access
basket on the day preceding the transport restructure date, to the API
value that applied to the special access basket on the day preceding
the transport restructure date, weighted by the revenue weight of the
special access services included in the trunking basket; and
(B) The ratio of the PCI value that applied to the traffic
sensitive basket on the day preceding the transport restructure date,
to the API value that applied to the traffic sensitive basket on the
day preceding the transport restructure date, weighted by the revenue
weight of the transport services included in the trunking basket.
(ii) On the effective date, the API value for the trunking basket
referred to in Sec. 61.42(e)(2) shall be equal to the API value for the
special access basket on the day preceding the transport restructure
date.
(3) Service Category and Subcategory Pricing Bands for Flat-Rated
Transport and Special Access. From the effective date through the end
of the tariff year, the following shall govern instead of
Secs. 61.47(e) and 61.47(g)(1). The pricing bands established for the
voice grade and high capacity service categories referred to in
Secs. 61.42(e)(2)(i) and 61.42(e)(2)(iii) and the DS1 and DS3 service
subcategories referred to in Secs. 61.42(e)(2)(iii)(A) and
61.42(e)(2)(iii)(B), shall limit the pricing flexibility of the service
category or subcategory, as reflected in its SBI, as follows:
(i) The upper pricing band shall be a weighted average of the
following:
(A) The upper pricing band that applied to the special access
services included in the category or subcategory on the day preceding
the transport restructure date, weighted by the revenue weight of the
special access services included in the category or subcategory; and
(B) 1.05 times the SBI value for the special access services
included in the category or subcategory on the day preceding the
transport restructure date, weighted by the revenue weight of the
transport services included in the category or subcategory.
(ii) The lower pricing band shall be a weighted average of the
following:
(A) The lower pricing band that applied to the special access
services included in the category or subcategory on the day preceding
the transport restructure date, weighted by the revenue weight of the
special access services included in the category or subcategory; and
(B) 0.95 times the SBI value for the special access services
included in the category or subcategory on the day preceding the
transport restructure date, weighted by the revenue weight of the
transport services included in the category or subcategory.
(iii) On the effective date, the SBI value for the category or
subcategory shall be equal to the SBI value for the corresponding
special access category or subcategory on the day preceding the
effective date.
(4) Tandem-Switched Transport and Interconnection Charge SBIs. On
the effective date, the SBIs for the tandem-switched transport and
interconnection charge service categories defined in Sec. 61.42(e)(2)
(v) and (vi) shall be assigned an initial value prior to adjustment of
100, corresponding to the initial restructured rates in those
categories.
(5) Tandem-Switched Transport and Interconnection Charge Service
Category Pricing Bands. From the effective date through the end of the
tariff year, the following shall govern instead of Sec. 61.47 (g)(2)
and (g)(3):
(i) The upper pricing band for the tandem-switched transport
service category shall limit the upward pricing flexibility for this
service category, as reflected in its SBI, to two percent, measured
from the initial restructured rates for tandem-switched transport. The
lower pricing band for the tandem-switched transport service category
shall limit the downward pricing flexibility for this service category,
as reflected in its SBI, to five percent, measured from the initial
restructured rates for tandem-switched transport.
(ii) The upper pricing band for the interconnection charge service
category shall limit the upward pricing flexibility for this service
category, as reflected in its SBI, to zero percent, measured from the
initial restructured rate for the interconnection charge.
(i) Transport and Special Access Density Pricing Zone Transition
Rules--(1) Definitions. The following definitions apply for purposes of
paragraph (i) of this section:
Earlier date is the earlier of the special access zone date and the
transport zone date.
Earlier service is special access if the special access zone date
precedes the transport zone date, and is transport if the transport
zone date precedes the special access zone date.
Later date is the later of the special access zone date and the
transport zone date.
Later service is transport if the special access zone date precedes
the transport zone date, and is special access if the transport zone
date precedes the special access zone date.
Revenue weight of a given group of services included in a zone
category is the ratio of base period demand for the given service rate
elements included in the category priced at existing rates, to the base
period demand for the entire group of rate elements comprising the
category priced at existing rates.
Special access zone date is the date on which a local exchange
carrier tariff establishing divergent special access rates in different
zones, as described in Sec. 69.123(c) of this chapter, becomes
effective.
Transport zone date is the date on which a local exchange carrier
tariff establishing divergent switched transport rates in different
zones, as described in Sec. 69.123(d) of this chapter, becomes
effective.
(2) Simultaneous Introduction of Special Access and Transport
Zones. Local exchange carriers subject to price cap regulation that
have established density pricing zones pursuant to Sec. 69.123 of this
chapter, and whose special access zone date and transport zone date
occur on the same date, shall initially establish density pricing zone
SBIs and bands pursuant to the methodology in Sec. 61.47(h).
(3) Sequential Introduction of Zones in the Same Tariff Year.
Notwithstanding Sec. 61.47(h), local exchange carriers subject to price
cap regulation that have established density pricing zones pursuant to
Sec. 69.123 of this chapter, and whose special access zone date and
transport zone date occur on different dates during the same tariff
year, shall, on the earlier date, establish density pricing zone SBIs
and pricing bands using the methodology described in Sec. 61.47(h), but
applicable to the earlier service only. On the later date, such
carriers shall recalculate the SBIs and pricing bands to limit the
pricing flexibility of the services included in each density pricing
zone category, as reflected in its SBI, as follows:
(i) The upper pricing band shall be a weighted average of the
following:
(A) The upper pricing band that applied to the earlier services
included in the zone category on the day preceding the later date,
weighted by the revenue weight of the earlier services included in the
zone category; and
(B) 1.05 times the SBI value for the services included in the zone
category on the day preceding the later date, weighted by the revenue
weight of the later services included in the zone category.
(ii) The lower pricing band shall be a weighted average of the
following:
(A) The lower pricing band that applied to the earlier services
included in the zone category on the day preceding the later date,
weighted by the revenue weight of the earlier services included in the
zone category; and
(B) 0.90 times the SBI value for the services included in the zone
category on the day preceding the later date, weighted by the revenue
weight of the later services included in the zone category.
(iii) On the later date, the SBI value for the zone category shall
be equal to the SBI value for the category on the day preceding the
later date.
(4) Introduction of Zones in Different Tariff Years.
Notwithstanding Sec. 61.47(h), those local exchange carriers subject to
price cap regulation that have established density pricing zones
pursuant to Sec. 69.123 of this chapter, and whose special access zone
date and transport zone date do not occur within the same tariff year,
shall, on the earlier date, establish density pricing zone SBIs and
pricing bands using the methodology described in Sec. 61.47(h), but
applicable to the earlier service only.
(i) On the later date, such carriers shall use the methodology set
forth in paragraphs (a) through (d) of Sec. 61.47 to calculate separate
SBIs in each zone for each of the following groups of services:
(A) DS1 special access services;
(B) DS3 special access services;
(C) DS1 entrance facilities, DS1 direct-trunked transport, and DS1
dedicated signalling transport;
(D) DS3 entrance facilities, DS3 direct-trunked transport, and DS3
dedicated signalling transport;
(E) Voice grade entrance facilities, voice grade direct-trunked
transport, and voice grade dedicated signalling transport;
(F) Tandem-switched transport; and
(G) Such other special access services as the Commission may
designate by order.
(ii) From the later date through the end of the following tariff
year, the annual pricing flexibility for each of the subindexes
specified in paragraph (i)(4)(i) of this section shall be limited to an
annual increase of five percent or an annual decrease of ten percent,
relative to the percentage change in the PCI for the trunking basket,
measured from the levels in effect on the last day of the tariff year
preceding the tariff year in which the later date occurs.
(iii) On the first day of the second tariff year following the
tariff year during which the later date occurs, the local exchange
carriers to which this paragraph applies shall establish the separate
subindexes provided in Sec. 61.47(h)(1), and shall set the initial SBIs
for those density pricing zone categories that are combined (specified
in paragraphs (i)(4)(i)(A) and (i)(4)(i)(C), (i)(4)(i)(B) and
(i)(4)(i)(D), and (i)(4)(i)(E) and (i)(4)(i)(G) of this section) by
computing the weighted averages of the SBIs that applied to the
formerly separate zone categories, weighted by the revenue weights of
the respective services included in the zone categories.
Sec. 61.49 [Amended]
6. Section 61.49(c) is amended by removing the cite
``Secs. 61.47(e) and (f)'' and adding, in their place, the cite
``Sec. 61.47(e), (f)(1), (g), and (h)''; and by removing the cite
``Sec. 61.47(g)'' and adding in their place, the cite
``Sec. 61.47(f)(2)''.
7. Section 61.49(d) is amended by removing the cite
``Sec. 61.47(e)'' and adding, in their place, the cite ``Sec. 61.47(e),
(g), and (h)''.
Sec. 61.58 [Amended]
8. Section 61.58(c)(3) is amended by removing the cite
``Secs. 61.47(e) and (f)'' and adding, in their place, the cite
``Sec. 61.47(e), (f)(1), (g), and (h)''; and by removing the cite
``Sec. 61.47(g)'' and adding in their place, the cite
``Sec. 61.47(f)(2)''.
9. Section 61.58(c)(4) is amended by removing the cite
``Sec. 61.47(e)'' and adding, in their place, the cite ``Sec. 61.47(e),
(g), and (h)''.
PART 69--ACCESS CHARGES
1. The authority citation for part 69 continues to read as follows:
Authority: Secs. 4, 201, 202, 203, 205, 218, 403, 48 Stat. 1066,
1070, 1072, 1077, 1094, as amended, 47 U.S.C. 154, 201, 202, 203,
205, 218, 403.
Sec. 69.110 [Amended]
2. Sections 69.110(c)(1) and 69.110(c)(2) are amended by removing
the words ``to recover the costs'' and adding, in their place, the
words ``for use''.
Sec. 69.113 [Amended]
3. Section 69.113(a) is amended by removing the words ``69.110,
69.111, 69.112''.
4. Section 69.113(d) is amended by removing the words ``Transport
element or elements'' and adding, in their place, the words
``interconnection charge element''.
5. Section 69.113(e) is amended by removing the words ``transport
or''.
Sec. 69.126 [Amended]
Section 69.126 is amended by removing the words ``May 1, 1994'' and
adding, in their place, the words ``six months after the effective date
of the tariffs introducing initial transport rates''.
[FR Doc. 94-4672 Filed 3-3-94; 8:45 am]
BILLING CODE 6712-01-M
