§ 51.705   LECs' rates for transport and termination.

   (a)  Notwithstanding any other provision of the Commission's rules, by
   default, transport and termination for Non-Access Telecommunications Traffic
   exchanged between a local exchange carrier and a CMRS provider within the
   scope of § 51.701(b)(2) shall be pursuant to a bill-and-keep arrangement, as
   provided in § 51.713.

   (b) Establishment of incumbent LECs' rates for transport and termination:

   (1) This provision applies when, in the absence of a negotiated agreement
   between  parties,  state  commissions  establish Non-Access Reciprocal
   Compensation rates for the exchange of Non-Access Telecommunications Traffic
   between a local exchange carrier and a telecommunications carrier other than
   a CMRS provider where the incumbent local exchange carriers did not have any
   such rates as of December 29, 2011. Any rates established pursuant to this
   provision apply between December 29, 2011 and the date at which they are
   superseded by the transition specified in paragraphs (c)(2) through (c)(5)
   of this section.

   (2)  An  incumbent  LEC's  rates  for  transport  and  termination  of
   telecommunications traffic shall be established, at the election of the
   state commission, on the basis of:

   (i) The forward-looking economic costs of such offerings, using a cost study
   pursuant to § § 51.505 and 51.511; or

   (ii) A bill-and-keep arrangement, as provided in § 51.713.

   (3) In cases where both carriers in a Non-Access Reciprocal Compensation
   arrangement are incumbent LECs, state commissions shall establish the rates
   of the smaller carrier on the basis of the larger carrier's forward-looking
   costs, pursuant to § 51.711.

   (c) Except as provided by paragraph (a) of this section, and notwithstanding
   any  other  provision  of the Commission's rules, default transitional
   Non-Access Reciprocal Compensation rates shall be determined as follows:

   (1) Effective December 29, 2011, no telecommunications carrier may increase
   a Non-Access Reciprocal Compensation for transport or termination above the
   level in effect on December 29, 2011. All Bill-and-Keep Arrangements in
   effect  on December 29, 2011 shall remain in place unless both parties
   mutually agree to an alternative arrangement.

   (2) Beginning July 1, 2012, if any telecommunications carrier's Non-Access
   Reciprocal Compensation rates in effect on December 29, 2011 or established
   pursuant to paragraph (b) of this section subsequent to December 29, 2011,
   exceed that carrier's interstate access rates for functionally equivalent
   services in effect in the same state on December 29, 2011, that carrier
   shall reduce its reciprocal compensation rate by one half of the difference
   between the Non-Access Reciprocal Compensation rate and the corresponding
   functionally equivalent interstate access rate.

   (3) Beginning July 1, 2013, no telecommunications carrier's Non-Access
   Reciprocal  Compensation  rates  shall  exceed that carrier's tariffed
   interstate access rate in effect in the same state on January 1 of that same
   year, for equivalent functionality.

   (4) After July 1, 2018, all Price-Cap Local Exchange Carrier's Non-Access
   Reciprocal Compensation rates and all non-incumbent LECs that benchmark
   access rates to Price Cap Carrier shall be set pursuant to Bill-and-Keep
   arrangements for Non-Access Reciprocal Compensation as defined in this
   subpart.

   (5)  After  July  1, 2020, all Rate-of-Return Local Exchange Carrier's
   Non-Access Reciprocal Compensation rates and all non-incumbent LECs that
   benchmark access rates to Rate-of-Return Carriers shall be set pursuant to
   Bill-and-Keep arrangements for Non-Access Reciprocal Compensation as defined
   in this subpart.

   [ 76 FR 73855 , Nov. 29, 2011]

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