§ 36.126   Circuit equipment--Category 4.

   (a) For the purpose of this section, the term "Circuit Equipment"
   encompasses the Radio Systems and Circuit Equipment contained in
   Accounts 2230 through 2232 respectively. It includes central office
   equipment, other than switching equipment and automatic message
   recording equipment, which is used to derive communications
   transmission channels or which is used for the amplification,
   modulation, regeneration, testing, balancing or control of signals
   transmitted over communications transmission channels. Examples of
   circuit equipment in general use include:

   (1) Carrier telephone and telegraph system terminals.

   (2) Telephone and telegraph repeaters, termination sets, impedance
   compensators, pulse link repeaters, echo suppressors and other
   intermediate transmission amplification and balancing equipment except
   that included in switchboards.

   (3) Radio transmitters, receivers, repeaters and other radio central
   office equipment except message switching equipment associated with
   radio systems.

   (4) Composite ringers, line signaling and switching pad circuits.

   (5) Concentration equipment.

   (6) Composite sets and repeating coils.

   (7) Program transmission amplifiers, monitoring devices and volume
   indicators.

   (8) Testboards, test desks, repair desks and patch bays, including
   those provided for test and control, and for telegraph and transmission
   testing.

   (b) For apportionment among the operations, the cost of circuit
   equiment is assigned to the following subsidiary categories:

   (1) Exchange Circuit Equipment--Category 4.1. (i) Wideband Exchange
   Line Circuit Equipment--Category 4.11.

   (ii) Exchange Trunk Circuit Equipment (Wideband and
   Non-Wideband)--Category 4.12.

   (iii) Exchange Line Circuit Equipment Excluding Wideband--Category
   4.13.

   (2) Interexchange Circuit Equipment--Category 4.2. (i) Interexchange
   Circuit Equipment Furnished to Another Company for Interstate
   Use--Category 4.21.

   (ii) Interexchange Circuit Equipment Used for Wideband Services
   including Satellite and Earth Station Equipment used for Wideband
   Service--Category 4.22.

   (iii) All Other Interexchange Circuit Equipment--Category 4.23.

   (3) Host/Remote Message Circuit Equipment--Category 4.3. (4) In
   addition, for the purpose of identifying and separating property
   associated with special services, circuit equipment included in
   Categories 4.12 (other than wideband equipment) 4.13 and 4.23 is
   identified as either basic circuit equipment, i.e., equipment that
   performs functions necessary to provide and operate channels suitable
   for voice transmission (telephone grade channels), or special circuit
   equipment, i.e., equipment that is peculiar to special service
   circuits. Carrier telephone terminals and carrier telephone repeaters
   are examples of basic circuit equipment is general use, while audio
   program transmission amplifiers, bridges, monitoring devices and volume
   indicators, telegraph carrier terminals and telegraph repeaters are
   examples of special circuit equipment in general use. Cost of exchange
   circuit equipment included in Categories 4.12 and 4.13 and the
   interexchange circuit equipment in Categories 4.21, 4.22 and 4.23 are
   segregated between basic circuit equipment and special circuit
   equipment only at those locations where amounts of interexchange and
   exchange special circuit equipment are significant. Where such
   segregation is not made, the total costs in these categories are
   classified as basic circuit equipment.

   (5) Effective July 1, 2001, through June 30, 2014, study areas subject
   to price cap regulation, pursuant to § 61.41, shall assign the average
   balances of Accounts 2230 through 2232 to the categories/subcategories
   as specified in § 36.126(b)(1) through (b)(4) based on the relative
   percentage assignment of the average balances of Accounts 2230 through
   2232 costs to these categories/subcategories during the twelve month
   period ending December 31, 2000.

   (6) Effective July 1, 2001, through June 30, 2017, study areas subject
   to price cap regulation, pursuant to § 61.41 of this chapter, shall
   assign the average balances of Accounts 2230 through 2232 to the
   categories/subcategories as specified in paragraphs (b)(1) through (4)
   of this section based on the relative percentage assignment of the
   average balances of Accounts 2230 through 2232 costs to these
   categories/subcategories during the twelve month period ending December
   31, 2000.

   (c) Apportionment of Exchange Circuit Equipment Among the Operations:

   (1) Wideband Exchange Line Circuit Equipment--Category 4.11--The cost
   of exchange circuit equipment in this category is determined separately
   for each wideband facility. The respective costs are allocated to the
   appropriate operation in the same manner as the related exchange line
   cable and wire facilities described in § 36.155.

   (2) Exchange Trunk Circuit Equipment (Wideband and
   Non-Wideband)--Category 4.12--The cost of exchange circuit equipment
   associated with this category for the study area is allocated to the
   appropriate operation in the same manner as the related exchange trunk
   cable and wire facilities as described in § 36.155.

   (3) Exchange Line Circuit Equipment Excluding Wideband--Category
   4.13--The cost of Circuit Equipment associated with exchange line plant
   excluding wideband for the study area is assigned to subcategories and
   is allocated to the appropriate operation in the same manner as the
   related exchange line cable and wire facilities for non-wideband
   service as described in § 36.154.

   (4) Effective July 1, 2001, through June 30, 2017, all study areas
   shall apportion costs in the categories/subcategories, as specified in
   paragraphs (b)(1) through (4) of this section, among the jurisdictions
   using the relative use measurements or factors, as specified in
   paragraphs (c)(1) through (3) of this section for the twelve month
   period ending December 31, 2000. Direct assignment of any subcategory
   of Category 4.1 Exchange Circuit Equipment to the jurisdictions shall
   be updated annually.

   (d) Apportionment of Interexchange Circuit Equipment among the
   Operations: Procedures to be Used by Interexchange Carriers. (1)
   Interexchange Circuit Equipment Furnished to Another Company for
   Interstate Use--Category 4.21--This category comprises that circuit
   equipment provided for the use of another company as an integral part
   of its interexchange circuit facilities used wholly for interstate
   services. This category includes such circuit equipment as telephone
   carrier, terminals telegraph carrier terminals, and microwave systems
   used wholly for interstate services. The total cost of the circuit
   equipment in this category for the study area is assigned to the
   interstate operation.

   (2) Interexchange Circuit Equipment Used for Wideband Service--Category
   4.22--This category includes the circuit equipment portion of
   interexchange channels used for wideband services. The cost of
   interexchange circuit equipment in this category is determined
   separately for each wideband channel and is segregated between message
   and private line services on the basis of the use of the channels
   provided. The respective costs are allocated to the appropriate
   operation in the same manner as the related interexchange cable and
   wire facilities as described in § 36.156.

   (3) All Other Interexchange Circuit Equipment--Category 4.23--This
   category includes the cost of all interexchange circuit equipment not
   assigned to Categories 4.21 and 4.22. Interexchange carriers shall
   freeze the allocation factors for Category 4.23 investment at levels
   reached on December 31, 1985, derived by using the procedures in effect
   at that time. On January 1, 1988, and thereafter, that frozen
   allocation factor shall be applied to each interexchange carrier's
   Category 4.23 investment to derive the interstate allocation. On
   January 1, 1988, and thereafter, the amount of investment allocated to
   the interstate jurisdiction will vary but the relative proportion of
   the total investment that is allocated to the interstate jurisdiction
   will remain frozen at 1985 levels.

   (e) Apportionment of Interexchange Circuit Equipment among the
   Operations: Procedures To Be Used by Exchange Carriers. (1)
   Interexchange Circuit Equipment Furnished to Another Company for
   Interstate Use--Category 4.21--This category comprises that circuit
   equipment provided for the use of another company as an integral part
   of its interexchange circuit facilities used wholly for interstate
   services. This category includes such circuit equipment as telephone
   carrier terminals telegraph carrier terminals, and microwave systems
   used wholly for interstate services. The total cost of the circuit
   equipment in this category for the study area is assigned to the
   interstate operation.

   (2) Interexchange Circuit Equipment Used for Wideband Service--Category
   4.22--This category includes the circuit equipment portion of
   interexchange channels used for wideband services. The cost of
   interexchange circuit equipment in this category is determined
   separately for each wideband channel and is segregated between message
   and private line services on the basis of the use of the channels
   provided. The respective costs are allocated to the appropriate
   operation in the same manner as the related interexchange cable and
   wire facilities described in § 36.156.

   (3) All Other Interexchange Circuit Equipment--Category 4.23--This
   category includes the cost of all interexchange circuit equipment not
   assigned to Categories 4.21 and 4.22. The cost of interexchange basic
   circuit equipment used for the following classes of circuits is
   included in this category: Jointly used message circuits, i.e., message
   switching plant circuits carrying messages from the state and
   interstate operations; circuits used for state private line service;
   and circuits used for state private line services.

   (i) An average interexchange circuit equipment cost per equivalent
   interexchange telephone termination for all circuits is determined and
   applied to the equivalent interexchange telephone termination counts of
   each of the following classes of circuits: Private Line, State Private
   Line, Message. The cost of interstate private line circuits is assigned
   directly to the interstate operation. The cost of state private line
   circuits is assigned directly to the state operation. The cost of
   message circuits is apportioned between the state and interstate
   operations on the basis of the relative number of study area
   conversation-minutes applicable to such facilities.

   (ii) [Reserved]

   (iii) The cost of special circuit equipment is segregated among
   telegraph grade private line services and other private line services
   based on an analysis of the use of the equipment and in accordance with
   § 36.126(b)(4). The special circuit equipment cost assigned to
   telegraph grade and other private line services is directly assigned to
   the appropriate operations.

   (4) Effective July 1, 2001, through June 30, 2017, all study areas
   shall apportion costs in the categories/subcategories specified in
   paragraphs (e)(1) through (3) of this section among the jurisdictions
   using relative use measurements or factors, as specified in paragraphs
   (e)(1) through (3) for the twelve month period ending December 31,
   2000. Direct assignment of any subcategory of Category 4.2
   Interexchange Circuit Equipment to the jurisdictions shall be updated
   annually.

   (f) Apportionment of Host/Remote Message Circuit Equipment Among the
   Operations.

   (1) Host/Remote Message Circuit Equipment--Category 4.3. This category
   includes message host/remote location circuit equipment for which a
   message circuit switching function is performed at the host central
   office associated with cable and wire facilities as described in
   § 36.152(c).

   (i) The category 4.3 cost of host/remote circuit equipment assigned to
   message services for the study area is apportioned among the exchange,
   intrastate toll, and interstate toll operations on the basis of the
   assignment of host/remote message cable and wire facilities as
   described in § 36.157.

   (ii) [Reserved]

   (2) Effective July 1, 2001, through June 30, 2017, all study areas
   shall apportion costs in the subcategory specified in paragraph (f)(1)
   of this section among the jurisdictions using the allocation factor, as
   specified in paragraph (f)(1)(i) of this section, for this subcategory
   for the twelve month period ending December 31, 2000. Direct assignment
   of any Category 4.3 Host/Remote Message Circuit Equipment to the
   jurisdictions shall be updated annually.

   [ 52 FR 17229 , May 6, 1987, as amended at  53 FR 33012  Aug. 29, 1988;  66 FR 33205 , June 21, 2001;  69 FR 12550 , Mar. 17, 2004;  71 FR 65745 , Nov.
   9, 2006;  75 FR 30301 , June 1, 2010;  76 FR 30841 , May 27, 2011;  79 FR 36236 , June 26, 2014]

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Information Origination/Termination (IOT) Equipment

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