§  69.104   End user common line for non-price cap incumbent local exchange
carriers.

   (a) This section is applicable only to incumbent local exchange
   carriers that are not subject to price cap regulation as that term is
   defined in §  61.3(ee) of this chapter. A charge that is expressed in
   dollars and cents per line per month shall be assessed upon end users
   that subscribe to local exchange telephone service or Centrex service
   to the extent they do not pay carrier common line charges. A charge
   that is expressed in dollars and cents per line per month shall be
   assessed upon providers of public telephones. Such charges shall be
   assessed for each line between the premises of an end user, or public
   telephone location, and a Class 5 office that is or may be used for
   local exchange service transmissions.

   (b) Charges to multi-line subscribers shall be computed by multiplying
   a single line rate by the number of lines used by such subscriber.

   (c) Until December 31, 2001, except as provided in paragraphs (d)
   through (h) of this section, the single-line rate or charge shall be
   computed by dividing one-twelfth of the projected annual revenue
   requirement for the End User Common Line element by the projected
   average number of local exchange service subscriber lines in use during
   such annual period.

   (d)(1) Until December 31, 2001, if the monthly charge computed in
   accordance with paragraph (c) of this section exceeds $6, the charge
   for each local exchange service subscriber line, except a residential
   line, a single-line business line, or a line used for Centrex-CO
   service that was in place or on order as of July 27, 1983, shall be $6.

   (2) Until December 31, 2001, the charge for each subscriber line
   associated with a public telephone shall be equal to the monthly charge
   computed in accordance with paragraph (d)(1) of this section.

   (e) Until December 31, 2001, the monthly charge for each residential
   and single-line business local exchange service subscriber shall be the
   charge computed in accordance with paragraph (c) of this section, or
   $3.50, whichever is lower.

   (f) Except as provided in §  54.403 of this chapter, the charge for each
   residential local exchange service subscriber line shall be the same as
   the charge for each single-line business local exchange service
   subscriber line.

   (g) A line shall be deemed to be a residential line if the subscriber
   pays a rate for such line that is described as a residential rate in
   the local exchange service tariff.

   (h) A line shall be deemed to be a single line business line if the
   subscriber pays a rate that is not described as a residential rate in
   the local exchange service tariff and does not obtain more than one
   such line from a particular telephone company.

   (i) The End User Common Line charge for each multi-party subscriber
   shall be assessed as if such subscriber had subscribed to single-party
   service.

   (j)-(l) [Reserved]

   (m) No charge shall be assessed for any WATS access line.

   (n)(1) Beginning January 1, 2002, except as provided in paragraph (r)
   of this section, the maximum monthly charge for each residential or
   single-line business local exchange service subscriber line shall be
   the lesser of:

   (i) One-twelfth of the projected annual revenue requirement for the End
   User Common Line element divided by the projected average number of
   local exchange service subscriber lines in use during such annual
   period; or

   (ii) The following:

   (A) Beginning January 1, 2002, $5.00.

   (B) Beginning July 1, 2002, $6.00.

   (C) Beginning July 1, 2003, $6.50.

   (2) In the event that GDP-PI exceeds 6.5% or is less than 0%, the
   maximum monthly charge in paragraph (n)(1)(ii) of this section will be
   adjusted in the same manner as the adjustment in §  69.152(d)(2).

   (o)(1) Beginning on January 1, 2002, except as provided in paragraph
   (r) of this section, the maximum monthly End User Common Line Charge
   for multi-line business lines will be the lesser of:

   (i) $9.20; or

   (ii) One-twelfth of the projected annual revenue requirement for the
   End User Common Line element divided by the projected average number of
   local exchange service subscriber lines in use during such annual
   period;

   (2) In the event that GDP-PI is greater than 6.5% or is less than 0%,
   the maximum monthly charge in paragraph (o)(1)(i) of this section will
   be adjusted in the same manner as the adjustment in §  69.152(k)(2).

   (p) Beginning January 1, 2002, non-price cap local exchange carriers
   shall assess:

   (1) No more than one End User Common Line charge as calculated under
   the applicable method under paragraph (n) of this section for Basic
   Rate Interface integrated services digital network (ISDN) service.

   (2) No more than five End User Common Line charges as calculated under
   paragraph (o) of this section for Primary Rate Interface ISDN service.

   (q) In the event a non-price cap local exchange carrier charges less
   than the maximum End User Common Line charge for any subscriber lines,
   the carrier may not recover the difference between the amount collected
   and the maximum from carrier common line charges, Interstate Common
   Line Support, or Long Term Support.

   (r) End User Common Line charge deaveraging. Beginning on January 1,
   2002, non-price cap local exchange carriers may geographically
   deaverage End User Common Line charges subject to the following
   conditions.

   (1) In order for a non-price cap local exchange carrier to be allowed
   to deaverage End User Common Line charges within a study area, the
   non-price cap local exchange carrier must have:

   (i) State commission-approved geographically deaveraged rates for UNE
   loops within that study area; or

   (ii) A universal service support disaggregation plan established
   pursuant to §  54.315 of this chapter.

   (2) All geographic deaveraging of End User Common Line charges by
   customer class within a study area must be according to the state
   commission-approved UNE loop zone, or the universal service support
   disaggregation plan established pursuant to §  54.315 of this chapter.

   (3) Within a given zone, Multi-line Business End User Common Line rates
   cannot fall below Residential and Single-Line Business rates.

   (4) For any given class of customer in any given zone, the End User
   Common Line Charge in that zone must be greater than or equal to the
   End User Common Line charge in the zone with the next lower cost per
   line.

   (5) A non-price cap local exchange carrier shall not receive more
   through deaveraged End User Common Line charges than it would have
   received if it had not deaveraged its End User Common Line charges.

   (6) Maximum charge. The maximum zone deaveraged End User Common Line
   Charge that may be charged in any zone is the applicable cap specified
   in paragraphs (n) or (o) of this section.

   (7) Voluntary Reductions. A “Voluntary Reduction” is one in which the
   non-price cap local exchange carrier charges End User Common Line rates
   below the maximum charges specified in paragraphs (n)(1) or (o)(1) of
   this section other than through offset of net increases in End User
   Common Line charge revenues or through increases in other zone
   deaveraged End User Common Line charges.

   [ 48 FR 10358 , Mar. 11, 1983, as amended at  48 FR 43018 , Sept. 21, 1983;
    52 FR 21540 , June 8, 1987;  53 FR 28395 , July 28, 1988;  61 FR 65364 ,
   Dec. 12, 1996;  62 FR 31933 , June 11, 1997;  62 FR 32962 , June 17, 1997;
    66 FR 59730 , Nov. 30, 2001]

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