Sec.  54.309   Calculation and distribution of forward-looking support for
non-rural carriers.

   (a) Calculation of total support available per state. Beginning January 1,
   2000, non-rural incumbent local exchange carriers, and eligible
   telecommunications carriers serving lines in the service areas of non-rural
   incumbent local exchange carriers, shall receive universal service support
   for the forward-looking economic costs of providing supported services in
   high-cost areas, provided that the State in which the lines served by the
   carrier are located has complied with the certification requirements in
    Sec. 54.313. The total amount of forward-looking support available in each State
   shall be determined according to the following methodology:

   (1) For each State, the Commission's cost model shall determine the
   statewide average forward-looking economic cost (FLEC) per line of providing
   the supported services. The statewide average FLEC per line shall equal the
   total FLEC for non-rural carriers to provide the supported services in the
   State, divided by the number of switched lines used in the Commission's cost
   model. The total FLEC shall equal average FLEC multiplied by the number of
   switched lines used in the Commission's cost model.

   (2) The Commission's cost model shall determine the national average FLEC
   per line of providing the supported services. The national average FLEC per
   line shall equal the total FLEC for non-rural carriers to provide the
   supported services in all States, divided by the total number of switched
   lines in all States used in the Commission's cost model.

   (3) The national cost benchmark shall equal two weighted standard deviations
   above the national average FLEC per line.

   (4) Support calculated pursuant to this section shall be provided to
   non-rural carriers in each State where the statewide average FLEC per line
   exceeds the national cost benchmark. The total amount of support provided to
   non-rural carriers in each State where the statewide average FLEC per line
   exceeds the national cost benchmark shall equal 76 percent of the amount of
   the statewide average FLEC per line that exceeds the national cost
   benchmark, multiplied by the number of lines reported pursuant to  Sec. 36.611,
    Sec. 36.612, and  Sec. 54.307 of this chapter.

   (5) In the event that a State's statewide average FLEC per line does not
   exceed the national cost benchmark, non-rural carriers in such State shall
   be eligible for support pursuant to  Sec. 54.311. In the event that a State's
   statewide average FLEC per line exceeds the national cost benchmark, but the
   amount of support otherwise provided to a non-rural carrier in that State
   pursuant to this section is less than the amount that would be provided
   pursuant to  Sec. 54.311, the carrier shall be eligible for support pursuant to
    Sec. 54.311.

   (b) Distribution of total support available per state. The total amount of
   support available per State calculated pursuant to paragraph (a) of this
   section shall be distributed to non-rural incumbent local exchange carriers,
   and eligible telecommunications carriers serving lines in the service areas
   of non-rural incumbent local exchange carriers, in the following manner:

   (1) The Commission's cost model shall determine the percentage of the total
   amount of support available in the State for each wire center by calculating
   the ratio of the wire center's FLEC above the national cost benchmark to the
   total FLEC above the national cost benchmark of all wire centers within the
   State. A wire center's FLEC above the national cost benchmark shall be equal
   to the wire center's average FLEC per line above the national cost
   benchmark, multiplied by the number of switched lines in the wire center
   used in the Commission's cost model;

   (2) The total amount of support distributed to each wire center shall be
   equal to the percentage calculated for the wire center pursuant to paragraph
   (b)(1) of this section multiplied by the total amount of support available
   in the state;

   (3) The total amount of support for each wire center pursuant to paragraph
   (b)(2) of this section shall be divided by the number of lines in the wire
   center reported pursuant to  Sec. 36.611,  Sec. 36.612, and  Sec. 54.307 of this chapter to
   determine the per-line amount of forward-looking support for that wire
   center;

   (4) The per-line amount of support for each wire center pursuant to
   paragraph (b)(3) of this section shall be multiplied by the number of lines
   served by a non-rural incumbent local exchange carrier in that wire center,
   or by an eligible telecommunications carrier in that wire center, as
   reported pursuant to  Sec. 36.611,  Sec. 36.612, and  Sec. 54.307 of this chapter, to
   determine the amount of forward-looking support to be provided to that
   carrier.

   (5) The total amount of support calculated for each wire center pursuant to
   paragraph (b)(4) of this section shall be divided by the number of lines in
   the wire center to determine the per-line amount of forward-looking support
   for that wire center;

   (6) The per-line amount of support for a wire center calculated pursuant to
   paragraph (b)(5) of the section shall be multiplied by the number of lines
   served by a non-rural incumbent local exchange carrier in that wire center,
   or by an eligible telecommunications carrier in that wire center, to
   determine the amount of forward-looking support to be provided to that
   carrier.

   (c) Petition for waiver. Pursuant to section 1.3 of this chapter, any State
   may file a petition for waiver of paragraph (b) of this section, asking the
   Commission to distribute support calculated pursuant to paragraph (a) of
   this section to a geographic area different than the wire center. Such
   petition must contain a description of the particular geographic level to
   which the State desires support to be distributed, and an explanation of how
   waiver of paragraph (b) of this section will further the preservation and
   advancement of universal service within the State.

   [ 64 FR 67431 , Dec. 1, 1999, as amended at  65 FR 26516 , May 8, 2000;  68 FR 69626 , Dec. 15, 2003]