Sec. 69.153  Presubscribed interexchange carrier charge (PICC).

    (a) A charge expressed in dollars and cents per line may be assessed 
upon the subscriber's presubscribed interexchange carrier to recover the 
common line revenues permitted under the price cap rules in part 61 of 
this chapter that cannot be recovered through the end user common line 
charge established under Sec. 69.152, residual interconnection charge 
revenues, and certain marketing expenses described in Sec. 69.156(a). In 
the event the ceilings on the PICC prevent the PICC from recovering all 
the residual common line, residual interconnection charge revenues, and 
marketing expenses, the PICC shall recover all residual common line 
revenues before it recovers residual interconnection charge revenues, 
and all residual interconnection charge revenues before it recovers 
marketing expenses.
    (b) If an end-user customer does not have a presubscribed 
interexchange carrier, the local exchange carrier may collect the PICC 
directly from the end user.
    (c) The maximum monthly PICC for primary residential subscriber 
lines and single-line business subscriber lines shall be the lower of:
    (1) One twelfth of the sum of annual common line revenues and 
residual interconnection charge revenues permitted under our price cap 
rules divided by the projected average number of local exchange service 
subscriber lines in use during such annual period, minus $3.50; or
    (2) $0.53. On January 1, 1999, this amount shall be adjusted by the 
inflation factor computed under paragraph (e) of this section, and 
increased by $0.50. On July 1, 2000, and in each subsequent year, this 
amount shall be adjusted by the inflation factor computed under 
paragraph (e) of this section, and increased by $0.50.
    (d) To the extent that a local exchange carrier cannot recover its 
full common line revenues, residual interconnection charge revenues, and 
those marketing expense revenues described in Sec. 69.156(a) permitted 
under price cap regulation through the recovery mechanisms established 
in Sec. 69.152, paragraph (c) of this section, and Sec. 69.156 (b) and 
(c), the local exchange carrier may assess a PICC on multi-line business 
subscriber lines and non-primary residential subscriber lines.
    (1) The maximum monthly PICC for non-primary residential subscriber 
lines shall be the lower of:
    (i) One twelfth of the annual common line, residual interconnection 
charge, and Sec. 69.156(a) marketing expense revenues permitted under 
the price cap rules set forth in part 61 of this chapter, less the 
maximum amounts permitted to be recovered through the recovery 
mechanisms under Sec. 69.152, paragraph (c) of this section, and 
Sec. 69.156 (b) and (c), divided by the total number of projected non-
primary residential and multi-line business subscriber lines in use 
during such annual period; or
    (ii) $1.50. On January 1, 1999, this amount shall be adjusted by the 
inflation factor computed under paragraph (e) of this section, and 
increased by

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$1.00. On July 1, 2000, and in each subsequent year, this amount shall 
be adjusted by the inflation factor computed under paragraph (e) of this 
section, and increased by $1.00.
    (2) If the maximum monthly PICC for non-primary residential 
subscriber lines is determined using paragraph (d)(1)(i) of this 
section, the maximum monthly PICC for multi-line business subscriber 
lines shall equal the maximum monthly PICC of non-primary residential 
subscriber lines. Otherwise, the maximum monthly PICC for multi-line 
business lines shall be the lower of:
    (i) One twelfth of the annual common line, residual interconnection 
charge, and Sec. 69.156(a) marketing expense revenues permitted under 
parts 61 and 69 of this chapter, less the maximum amounts permitted to 
be recovered through the recovery mechanisms under Sec. 69.152, 
paragraphs (c) and (d)(1)(i) of this section, and Sec. 69.156 (b) and 
(c), divided by the total number of projected multi-line business 
subscriber lines in use during such annual period; or
    (ii) $2.75. On January 1, 1999, this amount shall be adjusted by the 
inflation factor computed under paragraph (e) of this section, and 
increased by $1.50. On July 1, 2000, and in each subsequent year, this 
amount shall be adjusted by the inflation factor computed under 
paragraph (e) of this section, and increased by $1.50.
    (e) For the PICC ceiling for primary residential subscriber lines 
and single-line business subscriber lines under paragraph (c)(2) of this 
section, non-primary residential subscriber lines under paragraph 
(d)(1)(ii) of this section, and multi-line business subscriber lines 
under paragraph (d)(2)(ii) of this section:
    (1) On January 1, 1999, the ceiling will be adjusted to reflect 
inflation as measured by the change in GDP-PI for the 12 months ending 
September 30, 1998.
    (2) On July 1, 2000, the ceiling will be adjusted to reflect 
inflation as measured by the change in GDP-PI for the 18 months ending 
on March 31, 2000.
    (3) On July 1 of each subsequent year, the ceiling will be adjusted 
to reflect inflation as measured by the change in GDP-PI for the 12 
months ending on March 31 of the year the adjustment is made.
    (f)(1) Local exchange carriers shall assess no more than one PICC as 
calculated under the applicable method under paragraph (d)(1) of this 
section for Basic Rate Interface integrated services digital network 
(ISDN) service.
    (2) Local exchange carriers shall assess no more than five PICCs as 
calculated under paragraph (d)(2) of this section for Primary Rate 
Interface ISDN service.

[ 62 FR 31937 , June 11, 1997;  62 FR 40460 , July 29, 1997]