§ 54.307   Support to a competitive eligible telecommunications carrier.

   (a) Calculation of support. A competitive eligible telecommunications
   carrier shall receive universal service support to the extent that the
   competitive eligible telecommunications carrier captures the subscriber
   lines of an incumbent local exchange carrier (LEC) or serves new
   subscriber lines in the incumbent LEC's service area.

   (1) A competitive eligible telecommunications carrier serving loops in
   the service area of a rural incumbent local exchange carrier, as that
   term is defined in § 54.5 of this chapter, shall receive support for
   each line it serves in a particular service area based on the support
   the incumbent LEC would receive for each such line, disaggregated by
   cost zone if disaggregation zones have been established within the
   service area pursuant to § 54.315 of this subpart. A competitive
   eligible telecommunications carrier serving loops in the service area
   of a non-rural incumbent local exchange carrier shall receive support
   for each line it serves in a particular wire center based on the
   support the incumbent LEC would receive for each such line. A
   competitive eligible telecommunications carrier serving loops in the
   service area of a rate-of-return carrier shall be eligible to receive
   Interstate Common Line Support for each line it serves in the service
   area in accordance with the formula in § 54.901.

   (2) A competitive eligible telecommunications carrier that uses
   switching purchased as unbundled network elements pursuant to § 51.307
   of this chapter to provide the supported services shall receive the
   lesser of the unbundled network element price for switching or the
   per-line DEM support of the incumbent LEC, if any. A competitive
   eligible telecommunications carrier that uses loops purchased as
   unbundled network elements pursuant to § 51.307 of this chapter to
   provide the supported services shall receive the lesser of the
   unbundled network element price for the loop or the incumbent LEC's
   per-line payment from the high-cost loop support, LTS, and Interstate
   Common Line Support mechanisms, if any. The incumbent LEC providing
   nondiscriminatory access to unbundled network elements to such
   competitive eligible telecommunications carrier shall receive the
   difference between the level of universal service support provided to
   the competitive eligible telecommunications carrier and the
   per-customer level of support that the incumbent LEC would have
   received.

   (3) A competitive eligible telecommunications carrier that provides the
   supported services using neither unbundled network elements purchased
   pursuant to § 51.307 of this chapter nor wholesale service purchased
   pursuant to section 251(c)(4) of the Act will receive the full amount
   of universal service support that the incumbent LEC would have received
   for that customer.

   (b) In order to receive support pursuant to this subpart, a competitive
   eligible telecommunications carrier must report to the Administrator
   the number of working loops it serves in a service area pursuant to the
   schedule set forth in paragraph (c) of this section. For a competitive
   eligible telecommunications carrier serving loops in the service area
   of a rural incumbent local exchange carrier, as that term is defined in
   § 54.5, the carrier must report, by customer class, the number of
   working loops it serves in the service area, disaggregated by cost zone
   if disaggregation zones have been established within the service area
   pursuant to § 54.315. For a competitive eligible telecommunications
   carrier serving loops in the service area of a non-rural telephone
   company, the carrier must report the number of working loops it serves
   in the service area, by customer class if the non-rural telephone
   company receives Interstate Common Line Support pursuant to § 54.901 and
   by disaggregation zone if disaggregation zones have been established
   within the service area pursuant to § 54.315 of this subpart, and the
   number of working loops it serves in each wire center in the service
   area. For universal service support purposes, working loops are defined
   as the number of working Exchange Line C&WF loops used jointly for
   exchange and message telecommunications service, including C&WF
   subscriber lines associated with pay telephones in C&WF Category 1, but
   excluding WATS closed end access and TWX service. Competitive eligible
   telecommunications carriers providing mobile wireless service in an
   incumbent LEC's service area shall use the customer's billing address
   for purposes of identifying the service location of a mobile wireless
   customer in a service area.

   (c) A competitive eligible telecommunications carrier must submit the
   data required pursuant to paragraph (b) of this section according to
   the schedule.

   (1) No later than July 31st of each year, submit data as of December
   31st of the previous calendar year;

   (2) No later than September 30th of each year, submit data as of March
   31st of the existing calendar year;

   (3) No later than December 30th of each year, submit data as of June
   30th of the existing calendar year;

   (4) No later than March 30th of each year, submit data as of September
   30th of the previous calendar year.

   (d) Newly designated eligible telecommunications carriers.
   Notwithstanding the deadlines in paragraph (c) of this section, a
   carrier shall be eligible to receive support as of the effective date
   of its designation as an eligible telecommunications carrier under
   section 214(e)(2) or (e)(6), provided that it submits the data required
   pursuant to paragraph (b) of this section within 60 days of that
   effective date. Thereafter, the eligible telecommunications carrier
   must submit the data required in paragraph (b) of this section pursuant
   to the schedule in paragraph (c) of this section.

   (e) Support Beginning January 1, 2012. Competitive eligible
   telecommunications carriers will, beginning January 1, 2012, receive
   support based on the methodology described in this paragraph and not
   based on paragraph (a) of this section.

   (1) Baseline Support Amount. Each competitive eligible
   telecommunication carrier will have a “baseline support amount” equal
   to its total 2011 support in a given study area, or an amount equal to
   $3,000 times the number of reported lines for 2011, whichever is lower.
   Each competitive eligible telecommunications carrier will have a
   “monthly baseline support amount” equal to its baseline support amount
   divided by twelve.

   (i) “Total 2011 support” is the amount of support disbursed to a
   competitive eligible telecommunication carrier for 2011, without regard
   to prior period adjustments related to years other than 2011 and as
   determined by the Administrator on January 31, 2012.

   (ii) For the purpose of calculating the $3,000 per line limit, the
   average of lines reported by a competitive eligible telecommunication
   carrier pursuant to line count filings required for December 31, 2010,
   and December 31, 2011 shall be used. The $3,000 per line limit shall be
   applied to support amounts determined for each incumbent study area
   served by the competitive eligible telecommunications carrier.

   (2) Monthly Support Amounts. Competitive eligible telecommunications
   carriers shall receive the following support amounts, except as
   provided in paragraphs (e)(3) through (e)(6) of this section.

   (i) From January 1, 2012, to June 30, 2012, each competitive eligible
   telecommunications carrier shall receive its monthly baseline support
   amount each month.

   (ii) From July 1, 2012 to June 30, 2013, each competitive eligible
   telecommunications carrier shall receive 80 percent of its monthly
   baseline support amount each month.

   (iii) From July 1, 2013, to June 30, 2014, each competitive eligible
   telecommunications carrier shall receive 60 percent of its monthly
   baseline support amount each month.

   (iv) From July 1, 2014, to June 30, 2015, each competitive eligible
   telecommunications carrier shall receive 40 percent of its monthly
   baseline support amount each month.

   (v) From July 1, 2015, to June 30, 2016, each competitive eligible
   telecommunications carrier shall receive 20 percent of its monthly
   baseline support amount each month.

   (vi) Beginning July 1, 2016, no competitive eligible telecommunications
   carrier shall receive universal service support pursuant to this
   section.

   (3) Delayed Phase Down for Remote Areas in Alaska. Certain competitive
   eligible telecommunications carriers serving remote areas in Alaska
   shall have their support phased down on a later schedule than that
   described in paragraph (e)(2) of this section.

   (i) Remote Areas in Alaska. For the purpose of this paragraph, “remote
   areas in Alaska” includes all of Alaska except;

   (A) The ACS-Anchorage incumbent study area;

   (B) The ACS-Juneau incumbent study area;

   (C) The fairbankszone1 disaggregation zone in the ACS-Fairbanks
   incumbent study area; and

   (D) The Chugiak 1 and 2 and Eagle River 1 and 2 disaggregation zones of
   the Matunuska Telephone Association incumbent study area.

   (ii) Carriers Subject to Delayed Phase Down. A competitive eligible
   telecommunications carrier shall be subject to the delayed phase down
   described in paragraph (e)(3) of this section to the extent that it
   serves remote areas in Alaska, and it certified that it served covered
   locations in its September 30, 2011, filing of line counts with the
   Administrator. To the extent a competitive eligible telecommunications
   carrier serving Alaska is not subject to the delayed phase down, it
   will be subject to the phase down of support on the schedule described
   in paragraph (e)(2) of this section.

   (iii) Baseline for Delayed Phase Down. For purpose of the delayed phase
   down for remote areas in Alaska, the baseline amount for each
   competitive eligible telecommunications carrier subject to the delayed
   phase down shall be the annualized monthly support amount received for
   June 2014 or the last full month prior to the implementation of
   Mobility Fund Phase II, whichever is later.

   (iv) Monthly Support Amounts. Competitive eligible telecommunications
   carriers subject to the delayed phase down for remote areas in Alaska
   shall receive the following support amounts, except as provided in
   paragraphs (e)(4) through (e)(6) of this section.

   (A) From July 1, 2014 to June 30, 2015, each competitive eligible
   telecommunications carrier shall receive 80 percent of its monthly
   baseline support amount each month.

   (B) From July 1, 2015, to June 30, 2016, each competitive eligible
   telecommunications carrier shall receive 60 percent of its monthly
   baseline support amount each month.

   (C) From July 1, 2016, to June 30, 2017, each competitive eligible
   telecommunications carrier shall receive 40 percent of its monthly
   baseline support amount each month.

   (D) From July 1, 2017, to June 30, 2018, each competitive eligible
   telecommunications carrier shall receive 20 percent of its monthly
   baseline support amount each month.

   (E) Beginning July 1, 2018, no competitive eligible telecommunications
   carrier serving remote areas in Alaska shall receive universal service
   support pursuant to this section.

   (v) Interim Support for Remote Areas in Alaska. From January 1, 2012,
   until June 30, 2014 or the last full month prior to the implementation
   of Mobility Fund Phase II, whichever is later, competitive eligible
   telecommunications carriers subject to the delayed phase down for
   remote areas in Alaska shall continue to receive the support, as
   calculated by the Administrator, that each competitive
   telecommunications carrier would have received under the frozen
   per-line support amount as of December 31, 2011 capped at $3,000 per
   year, provided that the total amount of support for all such
   competitive eligible telecommunications carriers shall be capped
   pursuant to paragraph (e)(3)(v)(A) of this section.

   (A) Cap Amount. The total amount of support available on an annual
   basis for competitive eligible telecommunications carriers subject to
   the delayed phase down for remote areas in Alaska shall be equal to the
   sum of “total 2011 support,” as defined in paragraph (e)(1)(i) of this
   section, received by all competitive eligible telecommunications
   carriers subject to the delayed phase down for serving remote areas in
   Alaska.

   (B) Reduction Factor. To effectuate the cap, the Administrator shall
   apply a reduction factor as necessary to the support that would
   otherwise be received by all competitive eligible telecommunications
   carriers serving remote areas in Alaska subject to the delayed phase
   down. The reduction factor will be calculated by dividing the total
   amount of support available amount by the total support amount
   calculated for those carriers in the absence of the cap.

   (4) Further reductions. If a competitive eligible telecommunications
   carrier ceases to provide services to high-cost areas it had previously
   served, the Commission may reduce its baseline support amount.

   (5) Eligibility for support after Mobility Fund Phase II auction. (i) A
   mobile competitive eligible telecommunications carrier that receives
   monthly baseline support pursuant to this section and is a winning
   bidder in the Mobility Fund Phase II auction shall receive support at
   the same level as described in paragraph (e)(2)(iii) of this section
   for such area until the Wireless Telecommunications and Wireline
   Competition Bureaus determine whether to authorize the carrier to
   receive Mobility Fund Phase II support.

   (A) Upon the Wireless Telecommunications and Wireline Competition
   Bureaus' release of a public notice approving a mobile competitive
   eligible telecommunications carrier's application submitted pursuant to
   § 54.104(b) and authorizing the carrier to receive Mobility Fund Phase
   II support, the carrier shall no longer receive support at the level of
   monthly baseline support pursuant to this section for such area.
   Thereafter, the carrier shall receive monthly support in the amount of
   its Mobility Fund Phase II winning bid, provided that USAC shall adjust
   the amount of the carrier's support to the extent necessary to account
   for any difference in support the carrier received during the period
   between the close of the Mobility Fund Phase II auction and the release
   of the public notice authorizing the carrier to receive Mobility Fund
   Phase II support.

   (B) A mobile competitive eligible telecommunications carrier that is a
   winning bidder in the Mobility Fund Phase II auction but is not
   authorized to receive Mobility Fund Phase II support shall receive
   monthly support as set forth in paragraphs (e)(5)(iii) and (iv) of this
   section for such area, as applicable, provided that USAC shall decrease
   such amounts to account for support payments received prior to the
   Wireless Telecommunications and Wireline Competition Bureaus'
   authorization determination that exceed the amount of support for such
   area as set forth in paragraphs (e)(5)(iii) and (iv), and the monthly
   support in the mobile competitive eligible telecommunications carrier's
   winning Mobility Fund Phase II, which USAC shall treat as the carrier's
   monthly baseline support for purposes of paragraphs (e)(5)(iii) and
   (iv) to the extent the carrier's winning bid is below that amount.

   (ii) A mobile competitive eligible telecommunications carrier that
   receives monthly baseline support pursuant to this section shall
   receive the following monthly support amounts for areas that are
   ineligible for Mobility Fund Phase II support, as determined by the
   Wireless Telecommunications and Wireline Competition Bureaus:

   (A) For 12 months starting the first day of the month following the
   close of the Mobility Fund Phase II auction, each mobile competitive
   eligible telecommunications carrier shall receive two-thirds ( 2⁄3 ) of
   the carrier's support pursuant to paragraph (e)(2)(iii) of this section
   for the ineligible area.

   (B) For 12 months starting the month following the period described in
   paragraph (e)(5)(ii)(A) of this section, each mobile competitive
   eligible telecommunications carrier shall receive one-third ( 1⁄3 ) of
   the carrier's support pursuant to paragraph (e)(2)(iii) of this section
   for the ineligible area.

   (C) Following the period described in paragraph (e)(5)(ii)(B) of this
   section, no mobile competitive eligible telecommunications carrier
   shall receive monthly baseline support for the ineligible area pursuant
   to this section.

   (iii) Except as provided in paragraph (e)(3) of this section, to the
   extent Mobility Fund Phase II support is not awarded at auction for an
   eligible area, as determined by the Wireless Telecommunications and
   Wireline Competition Bureaus, the mobile competitive eligible
   telecommunications carrier receiving the minimum level of sustainable
   support for the eligible area shall continue to receive support at the
   level described in paragraph (e)(2)(iii) of this section until further
   Commission action, but such support shall not extend for more than 60
   months from the first day of the month following the close of the
   Mobility Fund Phase II auction. The “minimum level of sustainable
   support” is the lowest monthly baseline support received by a mobile
   competitive eligible telecommunications carrier that deploys the
   highest technology for the eligible area.

   (iv) All other mobile competitive eligible telecommunications carriers
   shall receive the following monthly support amounts for areas that are
   eligible for Mobility Fund Phase II support, as determined by the
   Wireless Telecommunications and Wireline Competition Bureaus:

   (A) For 12 months starting the first day of the month following the
   close of the Mobility Fund Phase II auction, each mobile competitive
   eligible telecommunications carrier shall receive two-thirds ( 2⁄3 ) of
   the carrier's support pursuant to paragraph (e)(2)(iii) of this section
   for the eligible area.

   (B) For 12 months starting the month following the period described in
   paragraph (e)(5)(iv)(A) of this section, each mobile competitive
   eligible telecommunications carrier shall receive one-third ( 1⁄3 ) of
   the carrier's support pursuant to paragraph (e)(2)(iii) of this section
   for the eligible area.

   (C) Following the period described in paragraph (e)(5)(iv)(B) of this
   section, no mobile competitive eligible telecommunications carrier
   shall receive monthly baseline support for the eligible area pursuant
   to this section.

   (v) Notwithstanding the foregoing schedule, the phase-down of identical
   support below the level described in paragraph (e)(2)(iii) of this
   section shall be subject to the restrictions in Consolidated
   Appropriations Act, 2016, Public Law 114-113, Div. E, Title VI, section
   631, 129 Stat. 2242, 2470 (2015), unless and until such restrictions
   are no longer in effect.

   (6) [Reserved]

   (7) Line Count Filings. Competitive eligible telecommunications
   carriers, except those subject to the delayed phase down described in
   paragraph (e)(3) of this section, shall no longer be required to file
   line counts beginning January 1, 2012. Competitive eligible
   telecommunications carriers subject to the delayed phase down described
   in paragraph (e)(3) of this section shall no longer be required to file
   line counts beginning July 1, 2014, or the date after the first line
   count filing following the implementation of Mobility Fund Phase II,
   whichever is later.

   (8) Eligibility for support after Connect America Phase II auction.
   Starting the first day of the month following the first authorization
   of Connect America Phase II auction support nationwide, fixed
   competitive eligible telecommunications carriers shall have the option
   of receiving support pursuant to paragraph (e)(2)(iii) of this section
   as described in the following paragraphs (e)(8)(i) through (iv):

   (i) For 12 months following the first authorization of Connect America
   Phase II auction support nationwide, each fixed competitive eligible
   telecommunications carrier shall receive two-thirds ( 2⁄3 ) of the
   carrier's total support pursuant to paragraph (e)(2)(iii) of this
   section.

   (ii) For 12 months starting the month following the period described in
   paragraph (e)(8)(i) of this section, each fixed competitive eligible
   telecommunications carrier shall receive one-third ( 1⁄3 ) of the
   carrier's total support pursuant to paragraph (e)(2)(iii) of this
   section.

   (iii) Following the period described in paragraph (e)(8)(ii) of this
   section, no fixed competitive eligible telecommunications carrier shall
   receive any support pursuant to paragraph (e)(2)(iii) of this section.

   (iv) Notwithstanding the foregoing schedule, the phase-down of support
   below the level described in paragraph (e)(2)(iii) of this section
   shall be subject to the restrictions in Consolidated Appropriations
   Act, 2016, Public Law 114-113, Div. E, Title VI, section 631, 129 Stat.
   2242, 2470 (2015), unless and until such restrictions are no longer in
   effect.

   [ 62 FR 32948 , June 17, 1997, as amended at  63 FR 2128 , Jan. 13, 1998;
    64 FR 67431 , Dec. 1, 1999;  65 FR 26516 , May 8, 2000;  66 FR 30087 , June
   5, 2001;  66 FR 59726 , Nov. 30, 2001;  68 FR 31623 , May 28, 2003;  69 FR 34602 , June 22, 2004;  70 FR 29979 , May 25, 2005;  76 FR 73871 , Nov. 29,
   2011;  77 FR 14302 , Mar. 9, 2012;  77 FR 30913 , May 24, 2012;  77 FR 52618 , Aug. 30, 2012;  82 FR 15449 , Mar. 28, 2017;  84 FR 8623 , Mar. 11,
   2019]

   return arrow Back to Top