§ 54.902   Calculation of Interstate Common Line Support for transferred
exchanges.

   (a) In the event that a rate-of-return carrier acquires exchanges from
   an entity that is also a rate-of-return carrier, Interstate Common Line
   Support for the transferred exchanges shall be distributed as follows.

   (1) Each carrier may report its updated line counts to reflect the
   transfer in the next quarterly line count filing pursuant to
   § 54.903(a)(1) that applies to the period in which the transfer
   occurred. During a transition period from the filing of the updated
   line counts until the end of the funding year, the Administrator shall
   adjust the Interstate Common Line Support received by each carrier
   based on the updated line counts and the per-line Interstate Common
   Line Support, categorized by customer class and, if applicable,
   disaggregation zone, of the selling carrier. If the acquiring carrier
   does not file a quarterly update of its line counts, it will not
   receive Interstate Common Line Support for those lines during the
   transition period.

   (2) Each carrier's projected data for the following funding year filed
   pursuant to § 54.903(a)(3) shall reflect the transfer of exchanges.

   (3) Each carrier's actual data filed pursuant to § 54.903(a)(4) shall
   reflect the transfer of exchanges. All post-transaction Interstate
   Common Line Support shall be subject to true up by the Administrator
   pursuant to § 54.903(b)(3).

   (b) In the event that a rate-of-return carrier acquires exchanges from
   a price cap carrier that are incorporated into one of the
   rate-of-return carrier's existing study areas, Interstate Common Line
   Support for the transferred exchanges shall be distributed as follows.

   (1) The acquiring carrier may report its updated line counts for the
   study area into which the acquired lines are incorporated in the next
   quarterly line count filing pursuant to § 54.903(a)(1) that applies to
   the period in which the transfer occurred. During a transition period
   from the filing of the updated line counts until the end of the funding
   year, the Administrator shall adjust the Interstate Common Line Support
   received by the acquiring carrier based on the updated line counts and
   the per-line amounts Interstate Common Line Support for the study area
   served by the acquiring carrier. If necessary, the Administrator shall
   develop an average per-line support amount to reflect various per-line
   amounts in multiple disaggregation zones served by the acquiring
   carrier. If the acquiring carrier does not file a quarterly update of
   its line counts, it will not receive Interstate Common Line Support for
   those lines during the transition period.

   (2) The acquiring carrier's projected data for the following funding
   year filed pursuant to § 54.903(a)(3) shall reflect the transfer of
   exchanges.

   (3) The acquiring carrier's actual data filed pursuant to
   § 54.903(a)(4) shall reflect the transfer of exchanges. All
   post-transaction Interstate Common Line Support shall be subject to
   true up by the Administrator pursuant to § 54.903(b)(3).

   (c) In the event that a rate-of-return carrier acquires exchanges from
   a price cap carrier that are not incorporated into one of the
   rate-of-return carrier's existing study areas, Interstate Common Line
   Support for the transferred exchanges shall be distributed as follows.

   (1) The acquiring rate-of-return may submit to the Administrator a
   projected Interstate Common Line Revenue Requirement for the acquired
   exchanges for the remainder of the funding year in the next quarterly
   report to the Administrator. The Administrator shall distribute
   Interstate Common Line Support pursuant to the partial year projected
   Interstate Common Line Revenue Requirement for the remainder of the
   funding year. If the acquiring carrier does not file a projected
   Interstate Common Line Revenue Requirement, it will not receive
   Interstate Common Line Support for those exchanges during the
   transition period.

   (2) The acquiring carrier's projected data for the following funding
   year filed pursuant to § 54.903(a)(3) shall reflect the transfer of
   exchanges.

   (3) The acquiring carrier's actual data filed pursuant to
   § 54.903(a)(4) shall reflect the transfer of exchanges. All
   post-transaction Interstate Common Line Support shall be subject to
   true up by the Administrator pursuant to § 54.903(b)(3)

   (d) In the event that an entity other than a rate-of-return carrier
   acquires exchanges from a rate-of-return carrier, per-line Interstate
   Common Line Support will not transfer.

   (e) This section does not alter any Commission rule governing the sale
   or transfer of exchanges, including the definition of "study area" in
   part 36.

   [ 66 FR 59728 , Nov. 30, 2001, as amended at  68 FR 31623 , May 28, 2003]

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