Sec.  20.20   Conditions applicable to provision of CMRS service by incumbent Local
Exchange Carriers.

   (a) Separate affiliate. An incumbent LEC providing in-region broadband CMRS
   shall  provide  such  services through an affiliate that satisfies the
   following requirements:

   (1)  The  affiliate  shall maintain separate books of account from its
   affiliated incumbent LEC. Nothing in this section requires the affiliate to
   maintain separate books of account that comply with part 32 of this chapter;

   (2) The affiliate shall not jointly own transmission or switching facilities
   with its affiliated incumbent LEC that the affiliated incumbent LEC uses for
   the  provision of local exchange service in the same in-region market.
   Nothing in this section prohibits the affiliate from sharing personnel or
   other resources or assets with its affiliated incumbent LEC; and

   (3) The affiliate shall acquire any services from its affiliated incumbent
   LEC for which the affiliated incumbent LEC is required to file a tariff at
   tariffed  rates, terms, and conditions. Other transactions between the
   affiliate and the incumbent LEC for services that are not acquired pursuant
   to tariff must be reduced to writing and must be made on a compensatory,
   arm's length basis. All transactions between the incumbent LEC and the
   affiliate are subject to part 32 of this chapter, including the affiliate
   transaction rules. Nothing in this section shall prohibit the affiliate from
   acquiring  any unbundled network elements or exchange services for the
   provision of a telecommunications service from its affiliated incumbent LEC,
   subject  to  the same terms and conditions as provided in an agreement
   approved under section 252 of the Communications Act of 1934, as amended.

   (b) Independence. The affiliate required in paragraph (a) of this section
   shall be a separate legal entity from its affiliated incumbent LEC. The
   affiliate may be staffed by personnel of its affiliated incumbent LEC,
   housed in existing offices of its affiliated incumbent LEC, and use its
   affiliated  incumbent  LEC's  marketing and other services, subject to
   paragraphs (a)(3) and (c) of this section.

   (c) Joint marketing. Joint marketing of local exchange and exchange access
   service and CMRS services by an incumbent LEC shall be subject to part 32 of
   this chapter. In addition, such agreements between the affiliate and the
   incumbent LEC must be reduced to writing and made available for public
   inspection upon request at the principle place of business of the affiliate
   and  the incumbent LEC. The documentation must include a certification
   statement identical to the certification statement currently required to be
   included with all Automated Reporting and Management Information Systems
   (ARMIS)  reports.  The  affiliate must also provide a detailed written
   description of the terms and conditions of the transaction on the Internet
   within 10 days of the transaction through the affiliate's home page.

   (d) Exceptions. (1) Rural telephone companies. Rural telephone companies are
   exempted from the requirements set forth in paragraphs (a), (b) and (c) of
   this section. A competing telecommunications carrier, interconnected with
   the rural telephone company, however, may petition the FCC to remove the
   exemption, or the FCC may do so on its own motion, where the rural telephone
   company has engaged in anticompetitive conduct.

   (2) Incumbent LECs with fewer than 2 percent of subscriber lines. Incumbent
   LECs with fewer than 2 percent of the nation's subscriber lines installed in
   the aggregate nationwide may petition the FCC for suspension or modification
   of  the  requirements set forth in paragraphs (a), (b) and (c) of this
   section.  The  FCC  will grant such a petition where the incumbent LEC
   demonstrates that suspension or modification of the separate affiliate
   requirement is

   (i) Necessary to avoid a significant adverse economic impact on users of
   telecommunications services generally or to avoid a requirement that would
   be unduly economically burdensome, and

   (ii) Consistent with the public interest, convenience, and necessity.

   (e) Definitions. Terms used in this section have the following meanings:

   Affiliate. “Affiliate” means a person that (directly or indirectly) owns or
   controls, is owned or controlled by, or is under common ownership with,
   another person. For purposes of this section, the term “own” means to own an
   equity interest (or the equivalent thereof) of more than 10 percent.

   Broadband Commercial Mobile Radio Service (Broadband CMRS). For the purposes
   of this section, “broadband CMRS” means Cellular Radiotelephone Service
   (part 22, subpart H of this chapter), Specialized Mobile Radio (part 90,
   subpart S of this chapter), and broadband Personal Communications Services
   (part 24, subpart E of this chapter).

   Incumbent Local Exchange Carrier (Incumbent LEC). “Incumbent LEC” has the
   same meaning as that term is defined in  Sec. 51.5 of this chapter.

   In-region. For the purposes of this section, an incumbent LEC's broadband
   CMRS  service is considered “in-region” when 10 percent or more of the
   population covered by the CMRS affiliate's authorized service area, as
   determined by the 1990 census figures, is within the affiliated incumbent
   LEC's wireline service area.

   Rural Telephone Company. “Rural Telephone Company” has the same meaning as
   that term is defined in  Sec. 51.5 of this chapter.

   (f) Sunset. This section will no longer be effective after January 1, 2002.

   [ 62 FR 63871 , Dec. 3, 1997, as amended at  66 FR 10968 , Feb. 21, 2001]
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                        Last updated: August 7, 2006