Sec. 51.711  Symmetrical reciprocal compensation.

    (a) Rates for transport and termination of local telecommunications 
traffic shall be symmetrical, except as provided in paragraphs (b) and 
(c) of this section.
    (1) For purposes of this subpart, symmetrical rates are rates that a 
carrier other than an incumbent LEC assesses upon an incumbent LEC for 
transport and termination of local telecommunications traffic equal to 
those that the incumbent LEC assesses upon the other carrier for the 
same services.
    (2) In cases where both parties are incumbent LECs, or neither party 
is an incumbent LEC, a state commission shall establish the symmetrical 
rates for transport and termination based on the larger carrier's 
forward-looking costs.
    (3) Where the switch of a carrier other than an incumbent LEC serves 
a geographic area comparable to the area served by the incumbent LEC's 
tandem switch, the appropriate rate for the carrier other than an 
incumbent LEC is the incumbent LEC's tandem interconnection rate.
    (b) A state commission may establish asymmetrical rates for 
transport and termination of local telecommunications traffic only if 
the carrier other than the incumbent LEC (or the smaller of two 
incumbent LECs) proves to the state commission on the basis of a cost 
study using the forward-looking economic cost based pricing methodology 
described in Secs. 51.505 and 51.511, that the forward-looking costs for 
a network efficiently configured and operated by the carrier other than 
the incumbent LEC (or the smaller of two incumbent LECs), exceed the 
costs incurred by the incumbent LEC (or the larger incumbent LEC), and, 
consequently, that such that a higher rate is justified.
    (c) Pending further proceedings before the Commission, a state 
commission shall establish the rates that licensees in the Paging and 
Radiotelephone Service (defined in part 22, subpart E of this chapter), 
Narrowband Personal Communications Services (defined in part 24, subpart 
D of this chapter), and Paging Operations in the Private Land Mobile 
Radio Services (defined in part 90, subpart P of this chapter) may 
assess upon other carriers for the transport and termination of local 
telecommunications traffic based on the forward-looking costs that such 
licensees incur in providing such services, pursuant to Secs. 51.505 and 
51.511. Such licensees' rates shall not be set based on the default 
proxies described in Sec. 51.707.