Sec.  69.110   Entrance facilities.

   (a) A flat-rated entrance facilities charge expressed in dollars and cents
   per unit of capacity shall be assessed upon all interexchange carriers and
   other  persons  that  use  telephone  company  facilities  between the
   interexchange carrier or other person's point of demarcation and the serving
   wire center.

   (b)(1) For telephone companies subject to price cap regulation, initial
   entrance facilities charges based on special access channel termination
   rates for equivalent voice grade, DS1, and DS3 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.  Entrance facilities charges may be distance-sensitive.
   Distance  shall be measured as airline kilometers between the point of
   demarcation and the serving wire center.

   (2) For telephone companies not subject to price cap regulation, entrance
   facilities charges based on special access channel termination rates for
   equivalent voice grade, DS1, and DS3 services generally shall be presumed
   reasonable  if the benchmark defined in  Sec. 69.108 is satisfied. Entrance
   facilities charges may be distance-sensitive. Distance shall be measured as
   airline kilometers between the point of demarcation and the serving wire
   center.

   (c) If the telephone company employs distance-sensitive rates:

   (1)  A  distance-sensitive  component shall be assessed for use of the
   transmission facilities, including any intermediate transmission circuit
   equipment between the end points of the entrance facilities; 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 entrance facilities charges.

   (e) Except as provided in paragraphs (f), (g), and (h) of this section, and
   subpart  H  of this part, telephone companies shall not offer entrance
   facilities 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 entrance
   facilities  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) of this chapter) 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  Sec.  Sec. 61.38(b)(4) and 61.49(k) of this chapter; 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 price density
   pricing  zone  (zone 1), telephone companies may offer term and volume
   discounts  in  entrance  facilities charges within the study area when
   interconnectors have taken at least 5 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.

   (h)  In study areas in which the telephone company has not implemented
   density  zone  pricing,  telephone companies may offer term and volume
   discounts in entrance facilities 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.

   [ 57 FR 54720 , Nov. 20, 1992, as amended at  58 FR 41190  and 41191, Aug. 3,
   1993;  58 FR 44950 , Aug. 25, 1993;  58 FR 48763 , Sept. 17, 1993;  59 FR 10304 ,
   Mar. 4, 1994;  60 FR 50121 , Sept. 28, 1995;  64 FR 51267 , Sept. 22, 1999]