§  54.318   High-cost support; limitations on high-cost support.

   (a) Beginning July 1, 2012, each carrier receiving high-cost support in
   a study area under this subpart will receive the full amount of
   high-cost support it otherwise would be entitled to receive if its
   rates for residential local service plus state regulated fees as
   defined in paragraph (e) of this section exceed a local urban rate
   floor representing the national average of local urban rates plus state
   regulated fees under the schedule specified in paragraph (f) of this
   section.

   (b) Carriers whose rates for residential local service plus state
   regulated fees offered for voice service are below the specified local
   urban rate floor under the schedule below plus state regulated fees
   shall have high-cost support reduced by an amount equal to the extent
   to which its rates for residential local service plus state regulated
   fees are below the local urban rate floor, multiplied by the number of
   lines for which it is receiving support.

   (c) This rule will apply only to rate-of-return carriers as defined in
   §  54.5 and carriers subject to price cap regulation as that term is
   defined in §  61.3 of this chapter.

   (d) For purposes of this section, high-cost support is defined as the
   support available pursuant to §  36.631 of this chapter and frozen
   high-cost support provided to price cap carriers to the extent it is
   based on support previously provided pursuant to § §  36.631 or 54.309 of
   this chapter.

   (e) State regulated fees. (1) Beginning on July 1, 2012, for purposes
   of calculating limitations on high-cost support under this section,
   state regulated fees shall be limited to state subscriber line charges,
   state universal service fees and mandatory extended area service
   charges, which shall be determined as part of a local rate survey, the
   results of which shall be published annually.

   (2) Federal subscriber line charges shall not be included in
   calculating limitations on high-cost support under this section.

   (f) Schedule. High-cost support will be limited where the rate for
   residential local service plus state regulated fees are below the local
   urban rate floor representing the national average of local urban rates
   plus state regulated fees under the schedule specified in this
   paragraph. To the extent end user rates plus state regulated fees are
   below local urban rate floors plus state regulated fees, appropriate
   reductions in high-cost support will be made by the Universal Service
   Administrative Company.

   (g) Any reductions in high-cost support under this section will not be
   redistributed to other carriers that receive support pursuant to
   §  36.631 of this chapter.

   (h) If, due to changes in local service rates, a local exchange carrier
   makes an updated rate filing pursuant to section 54.313(h)(2), the
   Universal Service Administrative Company will update the support
   reduction applied pursuant to paragraphs (b) and (f) of this section.

   (i) For the purposes of this section and the reporting of rates
   pursuant to paragraph 313(h), rates for residential local service
   provided pursuant to measured or message rate plans or as part of a
   bundle of services should be calculated as follows:

   (1) Rates for measured or message service shall be calculated by adding
   the basic rate for local service plus the additional charges incurred
   for measured service, using the mean number of minutes or message units
   for all customers subscribing to that rate plan multiplied by the
   applicable rate per minute or message unit. The local service rate
   includes additional charges for measured service only to the extent
   that the average number of units used by subscribers to that rate plan
   exceeds the number of units that are included in the plan. Where
   measured service plans have multiple rates for additional units, such
   as peak and off-peak rates, the calculation should reflect the average
   number of units that subscribers to the rate plan pay at each rate.

   (2) For bundled service, the residential local service rate is the
   local service rate as tariffed, if applicable, or as itemized on
   end-user bills. If a carrier neither tariffs nor itemizes the local
   voice service rate on bills for bundled services, the local service
   rate is the rate of a similar stand-alone local voice service that it
   offers to consumers in that study area.

   [ 76 FR 73876 , Nov. 29, 2011, as amended at  77 FR 14302 , Mar. 9, 2012;
    77 FR 30914 , May 24, 2012]

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