Sec. 69.112  Direct-trunked transport.

    (a) A flat-rated direct-trunked transport charge expressed in 
dollars and cents per unit of capacity shall be assessed upon all 
interexchange carriers and other persons that use telephone company 
direct-trunked transport facilities.
    (b)(1) For telephone companies subject to price cap regulation, 
initial direct-trunked transport charges based on the interoffice 
charges for equivalent voice grade, DS1, and DS3 special access services 
as of September 1, 1992, adjusted for changes in the price cap index 
calculated for the July 1, 1993 annual filing for telephone companies 
subject to price cap regulation, generally shall be presumed reasonable 
if the benchmark defined in Sec. 69.108 is satisfied. Direct-trunked 
transport charges may be distance-sensitive. Distance shall be measured 
as airline kilometers between customer-designated points.
    (2) For telephone companies not subject to price cap regulation, 
initial direct-trunked transport charges based on the interoffice 
charges for equivalent voice grade, DS1, and DS3 special access services 
generally shall be presumed reasonable if the benchmark defined in 
Sec. 69.108 is satisfied. Direct-trunked transport charges may be 
distance-sensitive. Distance shall be measured as airline kilometers 
between customer-designated points.
    (c) If the telephone company employs distance-sensitive rates:
    (1) A distance-sensitive component shall be assessed for use of the 
transmission facilities, including intermediate transmission circuit 
equipment, between the end points of the circuit; and
    (2) A nondistance-sensitive component shall be assessed for use of 
the circuit equipment at the ends of the transmission links.
    (d) Telephone companies shall apply only their shortest term special 
access rates in setting direct-trunked transport rates.
    (e) Except as provided in pagagraphs (f), (g), and (h) of this 
section, telephone companies shall not offer direct-trunked transport 
rates based on term discounts or volume discounts for multiple DS3s or 
any other service with higher volume than DS3.
    (f) Except in the situations set forth in paragraphs (g) and (h) of 
this section, telephone companies may offer term and volume discounts in 
direct-trunked transport charges within each study area used for the 
purpose of jurisdictional separations, in which interconnectors have 
taken either:
    (1) At least 100 DS1-equivalent cross-connects for the transmission 
of switched traffic (as described in Sec. 69.121(a)(1)) in offices in 
the study area that the telephone company has assigned to the lowest 
priced density pricing zone (zone 1) under an approved density pricing 
zone plan as described in Secs. 61.38(b)(4) and 61.49(k) of this 
section; or
    (2) An average of at least 25 DS1-equivalent cross-connects for the 
transmission of switched traffic per office assigned to the lowest 
priced density pricing zone (zone 1).
    (g) In study areas in which the telephone company has implemented 
density zone pricing, but no offices have been assigned to the lowest 
priced density pricing zone (zone 1), telephone companies may offer term 
and volume discounts in direct-trunked transport charges within the 
study area when interconnectors have taken at least 5 DS1-equivalent 
cross-connects for the

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transmission of switched traffic (as described in Sec. 69.121(a)(1) of 
this chapter) in offices in the study area.
    (h) In study areas in which the telephone company has not 
implemented density zone pricing, telephone companies may offer term and 
volume discounts in direct-trunked transport charges when 
interconnectors have taken at least 100 DS1-equivalent cross-connects 
for the transmission of switched traffic (as described in 
Sec. 69.121(a)(1) of this chapter) in offices in the study area.
    (i) Centralized equal access providers as described in Transport 
Rate Structure and Pricing, CC Docket No. 91-213, FCC 92-442, 7 FCC Rcd 
7002 (1992), are not required to provide direct-trunked transport 
service. Telephone companies that do not have measurement and billing 
capabilities at their end offices are not required to provide direct-
trunked transport services at those end offices without measurement and 
billing capabilities. Telephone companies that are not classified as 
Class A companies under Sec. 32.11 of this chapter are required to 
provide direct-trunked transport service upon request. All other 
telephone companies shall provide a direct-trunked transport service.

[ 57 FR 54720 , Nov. 20, 1992, as amended at  58 FR 41190 , Aug. 3, 1993;  58 FR 44950 , Aug. 25, 1993;  58 FR 48764 , Sept. 17, 1993;  60 FR 50121 , Sept. 
28, 1995]