Sec. 63.08  Lines outside of a carrier's exchange telephone service 
          area.

    (a) An exchange telephone common carrier or its affiliate is not 
required to file for authority pursuant to 47 U.S.C. 214 and 47 CFR 
63.01 to provide lines, or for existing lines, outside of the exchange 
telephone service area of that carrier and any of its affiliates when 
the lines are:
    (1) For its non-common carrier services; or
    (2) Sold to an unaffiliated party.
    (b) If a nondominant common carrier and its affiliates are not 
affiliated with an exchange telephone common carrier, the nondominant 
carrier or its affiliate is not required to file for authority pursuant 
to 47 U.S.C. 214 and 47 CFR 63.01 to provide lines, or for existing 
lines, of the types described in paragraph (a) of this section between 
any domestic points. ``Nondominant'' is defined as in Sec. 61.15(a) of 
this chapter.
    (c) A common carrier or its affiliate is not required to file for 
authority pursuant to 47 U.S.C. 214 and Sec. 63.01 to discontinue, 
reduce, or impair other non-common carrier service.
    (d) A common carrier's costs of providing lines for non-common 
carrier offerings and costs of providing such offerings must be entered 
on books of account separate from those for its common carrier services.
    (e) As used above, the term ``affiliate'' bars any financial or 
business relationship whatsoever by contract or otherwise, directly or 
indirectly between the carrier and the customer, except only the 
carrier-user relationship.

    Note to Paragraph (e): Examples of situations in which a carrier and 
its customer will be deemed to be controlled or having a relationship 
include the following, among others: Where one is the debtor or creditor 
of the other (except with respect to charges for communication 
services); where they have a common officer, director, or other employee 
at the management level; where there is any element of ownership or 
other financial interest by one in the other; and where any part has a 
financial interest in both.

[ 49 FR 21335 , May 21, 1984, as amended at  61 FR 10476 , Mar. 14, 1996]