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Part 1 of Title 47 of the Code of Federal Regulations (C.F.R.) is amended as follows:  Yx-j  PART 1 PRACTICE AND PROCEDURE ă 2. The table of contents of part 1 is revised to read as follows: * * * * *  X - Subpart J Pole Attachment Complaint Procedures  Y -  X - 1.1401` ` Purpose.  X -1.1402` ` Definitions.  X-1.1403` ` Duty to provide access; modifications; notice of removal, increase or modification; petition for temporary stay.(#`  Xe-1.1404` ` Complaint.  XN-1.1405` ` File numbers.  X7-1.1406` ` Dismissal of complaints.  X -1.1407` ` Response and reply.  X -1.1408` ` Number of copies and form of pleadings.  X-1.1409` ` Commission consideration of the complaint.  X-1.1410` ` Remedies.  X-1.1411` ` Meetings and hearings.  X-1.1412` ` Enforcement.  X-1.1413` ` Forfeiture.  X-1.1414` ` State certification.  Xh-1.1415` ` Other orders.  XQ-1.1416` ` Imputation of rates; modification costs.  X#-* * * * * 3. The authority citation for part 1 is revised to read as follows: AUTHORITY: 47 U.S.C. 151, 154, 251, 252, 303, and 309(j) unless otherwise noted. 4. Section 1.1401 is revised to read as follows:  Yk$- 1.1401` ` Purpose .hh The rules and regulations contained in subpart J of this part provide complaint and enforcement procedures to ensure that telecommunications carriers and cable system operators have nondiscriminatory access to utility poles, ducts, conduits, and rightsofway on rates, terms, and conditions that are just and reasonable."(0*0*0*0*"Ԍ5. Section 1.1402 is amended by revising paragraph (d) to read as follows:  Y- 1.1402` ` Definitions . * * * * *  Yw- (d) The term complaint means a filing by a cable television system operator, a cable television system association, a utility, an association of utilities, a telecommunications carrier, or an association of telecommunications carriers alleging that it has been denied access to a utility pole, duct, conduit, or rightofway in violation of this subpart and/or that a rate, term, or condition for a pole attachment is not just and reasonable. * * * * * 6. Section 1.1403 is amended by retitling the section, by amending paragraphs (a) and (b) and redesignating them as paragraphs (c) and (d), respectively, and by adding new paragraphs (a) and (b) to read as follows:  Xe- 1.1403` ` Duty to provide access; modifications; notice of removal, increase or  XN-modification; petition for temporary stay. (#` x(a) A utility shall provide a cable television system or any telecommunications carrier with nondiscriminatory access to any pole, duct, conduit, or rightofway owned or controlled by it. Notwithstanding this obligation, a utility may deny a cable television system or any telecommunications carrier access to its poles, ducts, conduits, or rightsofway, on a nondiscriminatory basis where there is insufficient capacity or for reasons of safety, reliability and generally applicable engineering purposes. x(b) Requests for access to a utility's poles, ducts, conduits or rightsofway by a telecommunications carrier or cable operator must be in writing. If access is not granted within 45 days of the request for access, the utility must confirm the denial in writing by the 45th day. The utility's denial of access shall be specific, shall include all relevant evidence and information supporting its denial, and shall explain how such evidence and information relate to a denial of access for reasons of lack of capacity, safety, reliability or engineering standards. x(c) A utility shall provide a cable television system operator or telecommunications carrier no less than 60 days written notice prior to: (1) removal of facilities or termination of any service to those facilities, such removal or termination arising out of a rate, term or condition of the cable television system operator's of telecommunications carrier's pole attachment agreement, or (2) any increase in pole attachment rates; or (3) any modification of facilities other than routine maintenance or modification in response to emergencies. x(d) A cable television system operator or telecommunications carrier may file a "Petition for Temporary Stay" of the action contained in a notice received pursuant to paragraph (c) of this section within 15 days of receipt of such notice. Such submission shall"(0*0*0*0*" not be considered unless it includes, in concise terms, the relief sought, the reasons for such relief, including a showing of irreparable harm and likely cessation of cable television service or telecommunication service, a copy of the notice, and certification of service as required by 1.1404(b) of this subpart. The named respondent may file an answer within 7 days of the date the Petition for Temporary Stay was filed. No further filings under this section will be considered unless requested or authorized by the Commission and no extensions of time will be granted unless justified pursuant to 1.46. 7. Section 1.1404 is amended by revising paragraphs (b) and (c) and by adding new paragraph (k) to read as follows:  Y - 1.1404` ` Complaint . * * * * * x(b) The complaint shall be accompanied by a certification of service on the named respondent, and each of the Federal, State, and local governmental agencies that regulate any aspect of the services provided by the complainant or respondent. x(c) In a case where it is claimed that a rate, term, or condition is unjust or unreasonable, the complaint shall contain a statement that the State has not certified to the Commission that it regulates the rates, terms and conditions for pole attachments. The complaint shall include a statement that the utility is not owned by any railroad, any person who is cooperatively organized or any person owned by the Federal Government or any State. * * * * * x(k) In a case where a cable television system operator or telecommunications carrier claims that it has been denied access to a pole, duct, conduit or rightofway despite a request made pursuant to section 47 U.S.C. 224(f), the complaint shall be filed within 30 days of such denial. In addition to meeting the other requirements of this section, the complaint shall include the data and information necessary to support the claim, including: x` ` (1) The reasons given for the denial of access to the utility's poles, ducts, conduits and rightsofway; x` ` (2) The basis for the complainant's claim that the denial of access is improper; x` ` (3) The remedy sought by the complainant; x` ` (4) A copy of the written request to the utility for access to its poles, ducts, conduits or rightsofway; x` ` (5) A copy of the utility's response to the written request including all information given by the utility to support its denial of access. A complaint alleging improper denial of access will not be dismissed if the complainant is unable to obtain a utility's written response, or if the utility denies the complainant any other information  Y(-needed to establish a prima facie case."(0*0*0*0*"Ԍ8. Section 1.1409 is amended by revising paragraphs (b) and (d) to read as follows:  Y- 1.1409` ` Commission consideration of the complaint . * * * * *  Yw-x(b) The complainant shall have the burden of establishing a prima facie case that the rate, term, or condition is not just and reasonable or that the denial of access violates 47 U.S.C. 224(f). If, however, a utility argues that the proposed rate is lower than its incremental costs, the utility has the burden of establishing that such rate is below the statutory minimum just and reasonable rate. In a case involving a denial of access, the utility  Y -shall have the burden of proving that the denial was lawful, once a prima facie case is established by the complainant. * * * * * x(d) The Commission shall deny the complaint if it determines that the complainant  Y~-has not established a prima facie case, or that the rate, term or condition is just and reasonable, or that the denial of access was lawful. * * * * * 9. Section 1.1416 is amended by retitling the section and by amending paragraph (b) to read as follows:  X-  1.1416` ` Imputation of rates; modification costs. * * * * * x(b) The costs of modifying a facility shall be borne by all parties that obtain access to the facility as a result of the modification and by all parties that directly benefit from the modification. Each party described in the preceding sentence shall share proportionately in the cost of the modification. A party with a preexisting attachment to the modified facility shall be deemed to directly benefit from a modification if, after receiving notification of such modification as provided in subpart J of this part, it adds to or modifies its attachment. Notwithstanding the foregoing, a party with a preexisting attachment to a pole, conduit, duct or rightofway shall not be required to bear any of the costs of rearranging or replacing its attachment if such rearrangement or replacement is necessitated solely as a result of an additional attachment or the modification of an existing attachment sought by another party. If a party makes an attachment to the facility after the completion of the modification, such party shall share proportionately in the cost of the modification if such modification rendered possible the added attachment.  YA&-T ă  Y*'- TP 10. Part 20 of Title 47 of the Code of Federal Regulations (C.F.R.) is amended as follows:  X(-  PART 20 COMMERCIAL MOBILE RADIO SERVICES "(0*0*0*0*"ԑ X-TP  Y- 11. The authority citation for part 20 is revised to read as follows: AUTHORITY: Secs. 4, 2512, 303, and 332, 48 Stat. 1066, 1062, as amended; 47 U.S.C. 154, 2514, 303, and 332 unless otherwise noted. 12. Section 20.11 is amended by adding paragraph (c) to read as follows:  X_-  XH-20.11` ` Interconnection to facilities of local exchange carriers.  Y - * * * * * (c) Local exchange carriers and commercial mobile radio service providers shall also comply with applicable provisions of part 51 of this chapter. 13. Part 51 of Title 47 of the Code of Federal Regulations (C.F.R.) is added to read as follows:  YK-  PART 51 INTERCONNECTION  Y5-  X- Subpart A General information  X- Sec.  X-51.1x` `  Basis and purpose.  X-51.3x` `  Applicability to negotiated agreements.  X-51.5x` `  Terms and definitions. Subpart B Telecommunications carriers  XO-51.100` `  General duty. Subpart C Obligations of all local exchange carriers  X-51.201` `  Resale.  X-51.203` `  Number portability.  X -51.219` `  Access to rights of way.  X!-51.221` `  Reciprocal compensation.  X"-51.223` `  Application of additional requirements. Subpart D Additional obligations of incumbent local exchange carriers  X;&-51.301` `  Duty to negotiate.  X$'-51.303` `  Preexisting agreements.  X (-51.305` `  Interconnection.  X(-51.307` `  Duty to provide access on an unbundled basis to network elements."(0*0*0*0*"Ԍ X-51.309` `  Use of unbundled network elements.  X-51.311` `  Nondiscriminatory access to unbundled network elements.  X-51.313` ` X Just, reasonable and nondiscriminatory terms and conditions for (#(#Xthe provision of unbundled network elements.(#  X-51.315` `  Combination of unbundled network elements.  X-51.317` `  Standards for identifying network elements to be made available.  Xv-51.319` `  Specific unbundling requirements.  X_-51.321` `  Methods of obtaining interconnection and access to unbundled (#(#Xhh@elements under section 251 of the Act.(#  X1-51.323` `  Standards for physical collocation and virtual collocation.  X - Subpart E Exemptions, suspensions, and modifications of requirements of section(#(#Xx` ` 251 of the Act.  X -51.401` `  State authority.  X -51.403` `  Carriers eligible for suspension or modification under section (#(#Xhh@251(f)(2) of the Act.(#  Xy-51.405` `  Burden of proof. Subpart F Pricing of interconnection and unbundled elements  X- 51.501` `  Scope.  X- 51.503` `  General pricing standard.  X- 51.505` `  Forwardlooking economic cost.  X- 51.507` `  General rate structure standard.  X- 51.509` `  Rate structure standards for specific elements.  X- 51.511` `  Forwardlooking economic cost per unit.  X- 51.513` `  Proxies for forwardlooking economic cost.  X|- 51.515` `  Application of access charges.  XN- Subpart G Resale  X - 51.601` `  Scope of resale rules.  X - 51.603` `  Resale obligation of all local exchange carriers.  X- 51.605` `  Additional obligations of incumbent local exchange carriers.  X- 51.607` `  Wholesale pricing standard.  X - 51.609` `  Determination of avoided retail costs.  X!- 51.611` `  Interim wholesale rates.  X"- 51.613` `  Restrictions on resale.  X#- 51.615` `  Withdrawal of services.  Xh$- 51.617` `  Assessment of end user common line charge on resellers.  X:&- Subpart H ` ` Reciprocal compensation for transport and termination of local  X#'-telecommunications traffic (#`  X(- 51.701` `  Scope of transport and termination pricing rules. (# "(0*0*0*0*"Ԍ X- 51.703` `  Reciprocal compensation obligation of LECs. (#  X- 51.705` ` X Incumbent LECs' rates for transport and termination. (#  Y- 51.707` ` X Default proxies for incumbent LECs' transport and termination  X-rates. (#  X- 51.709` `  Rate structure for transport and termination.  X- 51.711` `  Symmetrical reciprocal compensation. (#`  Xw- 51.713` `  Billandkeep arrangements for reciprocal compensation. (#`  X`- 51.715` `  Interim transport and termination pricing.  XI- 51.717` `  Renegotiation of existing nonreciprocal arrangements. (#`  X - Subpart I Procedures for implementation of section 252 of the Act.  X -51.801` ` X Commission action upon a state commission's failure to act to carry out its responsibility under section 252 of the Act.(#  X -51.803` ` X Procedures for Commission notification of a state commission's (#(#Xfailure to act.(#  X-51.805` `  The Commission's authority over proceedings and matters.  Xz-51.807` ` X Arbitration and mediation of agreements by the Commission (#(#Xpursuant to section 252(e)(5) of the Act.(#  XL-51.809` ` X Availability of provisions of agreements to other telecommunications carriers under section 252(i) of the Act.(#  Y-  Y- AUTHORITY: Sections 15, 7, 20105, 218, 22527, 25154, 271, 48 Stat. 1070, as amended, 1077; 47 U.S.C. 15155, 157, 20105, 218, 22527, 25154, 271, unless otherwise noted.  Y- zSubpart A ĩ General Information .  Y~- 51.1` ` Basis and purpose .  YQ- x(a) Basis. These rules are issued pursuant to the Communications Act of 1934, as amended.z  Y-x(b) Purpose. The purpose of these rules is to implement sections 251 and 252 of the Communications Act of 1934, as amended, 47 U.S.C. 251 and 252.  Y - 51.3` ` Applicability to negotiated agreements . To the extent provided in section 252(e)(2)(A) of the Act, a state commission shall have authority to approve an interconnection agreement adopted by negotiation even if the terms of the agreement do not comply with the requirements of this part.  XB&- 51.5` ` Terms and definitions. Terms used in this part have the following meanings: "(0*0*0*0*"Ԍ Y-X` hp x (#%'0*,.8135@8:-x` ` (1) The network interface device network element is defined as a crossconnect device used to connect loop facilities to inside wiring. x` ` (2) An incumbent LEC shall permit a requesting telecommunications carrier to connect its own local loops to the inside wiring of premises through the incumbent LEC's network interface device. The requesting telecommunications carrier shall establish this connection through an adjoining network interface device deployed by such telecommunications carrier;  Yo$-x(c) Switching Capability.  x` ` (1) Local Switching Capability. x` `  (i) The local switching capability network element is defined as: x"(0*0*0*0*"Ԍx` `  (A) lineside facilities, which include, but are not limited to, the connection between a loop termination at a main distribution frame and a switch line card; x` `  (B) trunkside facilities, which include, but are not limited to, the connection between trunk termination at a trunkside crossconnect panel and a switch trunk card; and x` `  (C) all features, functions, and capabilities of the switch, which include, but are not limited to:  Y -x` `  hh(1) the basic switching function of connecting lines to lines, lines to trunks, trunks to lines, and trunks to trunks, as well as the same basic capabilities made available to the incumbent LEC's customers, such as a telephone number, white page listing, and dial tone; and  Y -x` `  hh(2) all other features that the switch is capable of  Y -providing, including but not limited to custom calling, custom local area signaling service features, and Centrex, as well as any technically feasible customized routing functions provided by the switch. x` `  (ii) An incumbent LEC shall transfer a customer's local service to a competing carrier within a time period no greater than the interval within which the incumbent LEC currently transfers end users between interexchange carriers, if such transfer requires only a change in the incumbent LEC's software; x  Y-x` ` (2) Tandem Switching Capability.  The tandem switching capability network element is defined as: x` `  (i) trunkconnect facilities, including but not limited to the connection between trunk termination at a crossconnect panel and a switch trunk card; x` `  (ii) the basic switching function of connecting trunks to trunks; and  Y&-x` `  (iii) the functions that are centralized in tandem switches (as distinguished from separate endoffice switches), including but not limited to call recording, the routing of calls to operator services, and signaling conversion features;  Y -x(d) Interoffice Transmission Facilities.  Y"-x` ` (1) Interoffice transmission facilities are defined as incumbent LEC transmission facilities dedicated to a particular customer or carrier, or shared by more than  Yp$-one customer or carrier, that provide telecommunications between wire centers owned by incumbent LECs or requesting telecommunications carriers, or between switches owned by incumbent LECs or requesting telecommunications carriers. x` ` (2) The incumbent LEC shall:  Y(- "(0*0*0*0*"Ԍx` `  (i) provide a requesting telecommunications carrier exclusive use of interoffice transmission facilities dedicated to a particular customer or carrier, or use of the features, functions, and capabilities of interoffice transmission facilities shared by more than one customer or carrier; x` `  (ii) provide all technically feasible transmission facilities, features, functions, and capabilities that the requesting telecommunications carrier could use to provide telecommunications services; x` `  (iii) permit, to the extent technically feasible, a requesting telecommunications carrier to connect such interoffice facilities to equipment designated by the requesting telecommunications carrier, including, but not limited to, the requesting telecommunications carrier's collocated facilities; and  Y -x` `  (iv) permit, to the extent technically feasible, a requesting telecommunications carrier to obtain the functionality provided by the incumbent LEC's digital crossconnect systems in the same manner that the incumbent LEC provides such  Yy-functionality to interexchange carriers;   Wb- #Xw P7XP#   YK-xx(e) Signaling Networks and CallRelated Databases. x` ` (1) Signaling Networks. x` `  (i) Signaling networks include, but are not limited to, signaling links and signaling transfer points.x x` `  (ii) When a requesting telecommunications carrier purchases unbundled switching capability from an incumbent LEC, the incumbent LEC shall provide access to its signaling network from that switch in the same manner in which it obtains such access itself. x` `  (iii) An incumbent LEC shall provide a requesting telecommunications carrier with its own switching facilities access to the incumbent LEC's signaling network for each of the requesting telecommunications carrier's switches. This connection shall be made in the same manner as an incumbent LEC connects one of its own switches to a signal transfer point. x` `  (iv) Under this paragraph, an incumbent LEC is not required to unbundle those signaling links that connect service control points to switching transfer points or to permit a requesting telecommunications carrier to link its own signal transfer points directly to the incumbent LEC's switch or callrelated databases;  YS%-x` ` (2)  CallRelated Databases. x` `  (i) Callrelated databases are defined as databases, other than operations support systems, that are used in signaling networks for billing and collection or the transmission, routing, or other provision of a telecommunications service."(0*0*0*0*"Ԍx` `  (ii) For purposes of switch query and database response through a  Y-signaling network, an incumbent LEC shall provide access to its callrelated databases, including, but not limited to, the Line Information Database, Toll Free Calling database, downstream number portability databases, and Advanced Intelligent Network databases, by means of physical access at the signaling transfer point linked to the unbundled database. x` `  (iii) An incumbent LEC shall allow a requesting telecommunications carrier that has purchased an incumbent LEC's local switching capability to use the incumbent LEC's service control point element in the same manner, and via the same signaling links, as the incumbent LEC itself. x` `  (iv) An incumbent LEC shall allow a requesting telecommunications carrier that has deployed its own switch, and has linked that switch to an incumbent LEC's signaling system, to gain access to the incumbent LEC's service control point in a manner that allows the requesting carrier to provide any callrelated, databasesupported services to customers served by the requesting telecommunications carrier's switch. x` `  (v) A state commission shall consider whether mechanisms mediating access to an incumbent LEC's Advanced Intelligent Network service control points are necessary, and if so, whether they will adequately safeguard against intentional or unintentional misuse of the incumbent LEC's Advanced Intelligent Network facilities. x` `  (vi) An incumbent LEC shall provide a requesting telecommunications carrier with access to callrelated databases in a manner that complies with section 222 of the Act;  Y-x` ` (3) Service Management Systems. x` `  (A) A service management system is defined as a computer database or system not part of the public switched network that, among other things:  YN-x` `  (1) interconnects to the service control point and sends to that service control point the information and call processing instructions needed for a network switch to process and complete a telephone call; and  Y -x` `  (2) provides telecommunications carriers with the capability of entering and storing data regarding the processing and completing of a telephone call. x` `  (B) An incumbent LEC shall provide a requesting telecommunications carrier with the information necessary to enter correctly, or format for entry, the information relevant for input into the particular incumbent LEC service management system. x` `  (C) An incumbent LEC shall provide a requesting telecommunications carrier the same access to design, create, test, and deploy Advanced Intelligent Networkbased services at the service management system, through a service creation environment,  Y''- that the incumbent LEC provides to itself. x` `  (D) A state commission shall consider whether mechanisms mediating"(0*0*0*0*" access to Advanced Intelligent Network service management systems and service creation environments are necessary, and if so, whether they will adequately safeguard against intentional or unintentional misuse of the incumbent LEC's Advanced Intelligent Network  Y-facilities. x` `  (E) An incumbent LEC shall provide a requesting telecommunications carrier access to service management systems in a manner that complies with section 222 of the Act;  Y1-x(f) Operations Support Systems Functions.  Y -x` ` (1) Operations support systems functions consist of preordering, ordering, provisioning, maintenance and repair, and billing functions supported by an incumbent LEC's  Y -databases and information. x` ` (2) An incumbent LEC that does not currently comply with this requirement shall do so as expeditiously as possible, but, in any event, no later than January 1, 1997; and  Yd-x(g)   Operator Services and Directory Assistance. An incumbent LEC shall provide access to operator service and directory assistance facilities where technically feasible.  Y8-x#Xw P7XP#  X!- 51.321` ` Methods of obtaining interconnection and access to unbundled elements  X -under section 251 of the Act. (#` x(a) Except as provided in paragraph (e) of this section, an incumbent LEC shall provide, on terms and conditions that are just, reasonable, and nondiscriminatory in accordance with the requirements of this part, any technically feasible method of obtaining  Y-interconnection or access to unbundled network elements at a particular point upon a request by a telecommunications carrier. x(b) Technically feasible methods of obtaining interconnection or access to unbundled network elements include, but are not limited to: x` ` (1) physical collocation and virtual collocation at the premises of an incumbent LEC; and x` ` (2) meet point interconnection arrangements. x(c) A previously successful method of obtaining interconnection or access to unbundled network elements at a particular premises or point on an incumbent LEC's network is substantial evidence that such method is technically feasible in the case of substantially similar network premises or points. x(d) An incumbent LEC that denies a request for a particular method of obtaining interconnection or access to unbundled network elements on the incumbent LEC's network must prove to the state commission that the requested method of obtaining interconnection or access to unbundled network elements at that point is not technically feasible. "(0*0*0*0*"Ԍx(e) An incumbent LEC shall not be required to provide for physical collocation of equipment necessary for interconnection or access to unbundled network elements at the incumbent LEC's premises if it demonstrates to the state commission that physical collocation is not practical for technical reasons or because of space limitations. In such cases, the incumbent LEC shall be required to provide virtual collocation, except at points where the incumbent LEC proves to the state commission that virtual collocation is not technically feasible. If virtual collocation is not technically feasible, the incumbent LEC shall provide other methods of interconnection and access to unbundled network elements to the extent technically feasible. x(f) An incumbent LEC shall submit to the state commission detailed floor plans or diagrams of any premises where the incumbent LEC claims that physical collocation is not practical because of space limitations. x(g) An incumbent LEC that is classified as a Class A company under 32.11 of this chapter and that is not a National Exchange Carrier Association interstate tariff participant as provided in part 69, subpart G, shall continue to provide expanded interconnection service pursuant to interstate tariff in accordance with 64.1401, 64.1402, 69.121 of this chapter, and the Commission's other requirements.  XK-  X4-51.323` ` Standards for physical collocation and virtual collocation. x(a) An incumbent LEC shall provide physical collocation and virtual collocation to requesting telecommunications carriers. x(b) An incumbent LEC shall permit the collocation of any type of equipment used for interconnection or access to unbundled network elements. Whenever an incumbent LEC objects to collocation of equipment by a requesting telecommunications carrier for purposes within the scope of section 251(c)(6) of the Act, the incumbent LEC shall prove to the state commission that the equipment will not be actually used by the telecommunications carrier for the purpose of obtaining interconnection or access to unbundled network elements. Equipment used for interconnection and access to unbundled network elements includes, but is not limited to: x` ` (1) transmission equipment including, but not limited to, optical terminating equipment and multiplexers; and x` ` (2) equipment being collocated to terminate basic transmission facilities pursuant to 64.1401 and 64.1402 of this chapter as of August 1, 1996. x(c) Nothing in this section requires an incumbent LEC to permit collocation of switching equipment or equipment used to provide enhanced services. x(d) When an incumbent LEC provides physical collocation, virtual collocation, or both, the incumbent LEC shall: x` ` (1) provide an interconnection point or points, physically accessible by both the incumbent LEC and the collocating telecommunications carrier, at which the fiber optic cable carrying an interconnector's circuits can enter the incumbent LEC's premises, provided"(0*0*0*0*" that the incumbent LEC shall designate interconnection points as close as reasonably possible to its premises; x` ` (2) provide at least two such interconnection points at each incumbent LEC premises at which there are at least two entry points for the incumbent LEC's cable facilities, and at which space is available for new facilities in at least two of those entry points; x` ` (3) permit interconnection of copper or coaxial cable if such interconnection is first approved by the state commission; and x` ` (4) permit physical collocation of microwave transmission facilities except where such collocation is not practical for technical reasons or because of space limitations, in which case virtual collocation of such facilities is required where technically feasible. x(e) When providing virtual collocation, an incumbent LEC shall, at a minimum, install, maintain, and repair collocated equipment identified in paragraph (b) of this section within the same time periods and with failure rates that are no greater than those that apply to the performance of similar functions for comparable equipment of the incumbent LEC itself. x(f) An incumbent LEC shall allocate space for the collocation of the equipment identified in paragraph (b) of this section in accordance with the following requirements: x` ` (1) an incumbent LEC shall make space available within or on its premises to requesting telecommunications carriers on a firstcome, firstserved basis, provided, however, that the incumbent LEC shall not be required to lease or construct additional space to provide for physical collocation when existing space has been exhausted; x` ` (2) to the extent possible, an incumbent LEC shall make contiguous space available to requesting telecommunications carriers that seek to expand their existing collocation space; x` ` (3) when planning renovations of existing facilities or constructing or leasing new facilities, an incumbent LEC shall take into account projected demand for collocation of equipment; x` ` (4) an incumbent LEC may retain a limited amount of floor space for its own specific future uses, provided, however, that the incumbent LEC may not reserve space for future use on terms more favorable than those that apply to other telecommunications carriers seeking to reserve collocation space for their own future use; x` ` (5) an incumbent LEC shall relinquish any space held for future use before denying a request for virtual collocation on the grounds of space limitations, unless the incumbent LEC proves to the state commission that virtual collocation at that point is not technically feasible; and x` ` (6) an incumbent LEC may impose reasonable restrictions on the warehousing of unused space by collocating telecommunications carriers, provided, however, that the incumbent LEC shall not set maximum space limitations applicable to such carriers unless the incumbent LEC proves to the state commission that space constraints make such restrictions necessary. x(g) An incumbent LEC shall permit collocating telecommunications carriers to collocate equipment and connect such equipment to unbundled network transmission elements obtained from the incumbent LEC, and shall not require such telecommunications carriers to"(0*0*0*0*" bring their own transmission facilities to the incumbent LEC's premises in which they seek to collocate equipment. x(h) An incumbent LEC shall permit a collocating telecommunications carrier to interconnect its network with that of another collocating telecommunications carrier at the incumbent LEC's premises and to connect its collocated equipment to the collocated equipment of another telecommunications carrier within the same premises provided that the collocated equipment is also used for interconnection with the incumbent LEC or for access to the incumbent LEC's unbundled network elements. x` ` (1) An incumbent LEC shall provide the connection between the equipment in the collocated spaces of two or more telecommunications carriers, unless the incumbent LEC permits one or more of the collocating parties to provide this connection for themselves; and x` ` (2) An incumbent LEC is not required to permit collocating telecommunications carriers to place their own connecting transmission facilities within the incumbent LEC's premises outside of the actual physical collocation space. x(i) An incumbent LEC may require reasonable security arrangements to separate a collocating telecommunications carrier's space from the incumbent LEC's facilities. x(j) An incumbent LEC shall permit a collocating telecommunications carrier to subcontract the construction of physical collocation arrangements with contractors approved by the incumbent LEC, provided, however, that the incumbent LEC shall not unreasonably withhold approval of contractors. Approval by an incumbent LEC shall be based on the same criteria it uses in approving contractors for its own purposes.  X-x  X-Subpart E ` ` Exemptions, Suspensions, and Modifications of Requirements of Section  X-x` ` 251 of the Act.  Ye- 51.401` ` State authority.  Y8- A state commission shall determine whether a telephone company is entitled, pursuant to section 251(f) of the Act, to exemption from, or suspension or modification of, the requirements of section 251 of the Act. Such determinations shall be made on a casebycase basis.  X-  X -51.403` ` Carriers eligible for suspension or modification under section 251(f)(2)  X!-x` ` of the Act. A LEC is not eligible for a suspension or modification of the requirements of section 251(b) or section 251(c) of the Act pursuant to section 251(f)(2) of the Act if such LEC, at the holding company level, has two percent or more of the subscriber lines installed in the aggregate nationwide.  X$'- "$'0*0*0*P("Ԍ Y-51.405` ` Burden of proof . x(a) Upon receipt of a bona fide request for interconnection, services, or access to unbundled network elements, a rural telephone company must prove to the state commission that the rural telephone company should be entitled, pursuant to section 251(f)(1) of the Act, to continued exemption from the requirements of section 251(c) of the Act. x(b) A LEC with fewer than two percent of the nation's subscriber lines installed in the aggregate nationwide must prove to the state commission, pursuant to section 251(f)(2) of the Act, that it is entitled to a suspension or modification of the application of a requirement or requirements of section 251(b) or 251(c) of the Act. x(c) In order to justify continued exemption under section 251(f)(1) of the Act once a  Y -bona fide request has been made, an incumbent LEC must offer evidence that the application of the requirements of section 251(c) of the Act would be likely to cause undue economic burden beyond the economic burden that is typically associated with efficient competitive entry. x(d) In order to justify a suspension or modification under section 251(f)(2) of the Act, a LEC must offer evidence that the application of section 251(b) or section 251(c) of the Act would be likely to cause undue economic burden beyond the economic burden that is typically associated with efficient competitive entry.   А Y- Subpart F Pricing of Elements .  X- 51.501` ` Scope.  Y- x(a) The rules in this subpart apply to the pricing of network elements, interconnection, and methods of obtaining access to unbundled elements, including physical collocation and virtual collocation. x(b) As used in this subpart, the term "element" includes network elements, interconnection, and methods of obtaining interconnection and access to unbundled elements.  X- 51.503` ` General pricing standard.  Y!- x (a) An incumbent LEC shall offer elements to requesting telecommunications carriers at rates, terms, and conditions that are just, reasonable, and nondiscriminatory.  Yj$- x(b) An incumbent LEC's rates for each element it offers shall comply with the rate structure rules set forth in 51.507 and 51.509 of this part, and shall be established, at the election of the state commission x` ` (1) pursuant to the forwardlooking economic costbased pricing methodology set forth in 51.505 and 51.511 of this part; or x` ` (2) consistent with the proxy ceilings and ranges set forth in 51.513 of this"(0*0*0*0*" part. x(c) The rates that an incumbent LEC assesses for elements shall not vary on the basis of the class of customers served by the requesting carrier, or on the type of services that the requesting carrier purchasing such elements uses them to provide.  Xv- 51.505` ` Forwardlooking economic cost.  YH-x(a) In general. The forwardlooking economic cost of an element equals the sum of: x` ` (1) the total element longrun incremental cost of the element, as described in paragraph (b); and x` ` (2) a reasonable allocation of forwardlooking common costs, as described in paragraph (c).  Y -x(b) Total element longrun incremental cost. The total element longrun incremental cost of an element is the forwardlooking cost over the long run of the total quantity of the facilities and functions that are directly attributable to, or reasonably identifiable as incremental to, such element, calculated taking as a given the incumbent LEC's provision of other elements.  YO-x` ` (1) Efficient network configuration. The total element longrun incremental cost of an element should be measured based on the use of the most efficient telecommunications technology currently available and the lowest cost network configuration, given the existing location of the incumbent LEC's wire centers.  Y-x` ` (2) Forwardlooking cost of capital. The forwardlooking cost of capital shall be used in calculating the total element longrun incremental cost of an element.  Y-ex` ` (3) Depreciation rates. The depreciation rates used in calculating forwardlooking economic costs of elements shall be economic depreciation rates.  Y-x(c) Reasonable allocation of forwardlooking common costs.  Yq-x` ` (1) Forwardlooking common costs. Forwardlooking common costs are economic costs efficiently incurred in providing a group of elements or services (which may include all elements or services provided by the incumbent LEC) ethat cannot be attributed directly to individual elements or services.  Y-x` ` (2) Reasonable allocation. x` `  (A) The sum of a reasonable allocation of forwardlooking common costs and the total element longrun incremental cost of an element shall not exceed the standalone costs associated with the element. In this context, standalone costs are the total forwardlooking costs, including corporate costs, that would be incurred to produce a given element if that element were provided by an efficient firm that produced nothing but the given element. x` `  (B) The sum of the allocation of forwardlooking common costs for all elements and services shall equal the total forwardlooking common costs, exclusive of retail costs, attributable to operating the incumbent LEC's total network, so as to provide all the elements and services offered."3'0*((P("Ԍ Y-ԙx(d) Factors that may not be considered. The following factors shall not be considered in a calculation of the forwardlooking economic cost of an element:  Y-x` ` (1) Embedded costs. Embedded costs are the costs that the incumbent LEC incurred in the past and that are recorded in the incumbent LEC's books of accounts.  Y-x` ` (2) Retail costs. Retail costs include the costs of marketing, billing, collection, and other costs associated with offering retail telecommunications services to subscribers who are not telecommunications carriers, described in 51.609 of this part.  Ye-x` ` (3) Opportunity costs. Opportunity costs include the revenues that the incumbent LEC would have received for the sale of telecommunications services, in the absence of competition from telecommunications carrier that purchase elements.  Y" -x` ` (4) Revenues to subsidize other services. Revenues to subsidize other services include revenues associated with elements or telecommunications service offerings other than  Y -the element for which a rate is being established.  Y -x(e) Cost study requirements. An incumbent LEC must prove to the state commission that the rates for each element it offers do not exceed the forwardlooking economic cost per unit of providing the element, using a cost study that complies with the methodology set forth in this section and 51.511 of this part. x` ` (1) A state commission may set a rate outside the proxy ranges or above the proxy ceilings described in 51.513 of this part only if that commission has given full and fair effect to the economic cost based pricing methodology described in this section and 51.511 of this part in a state proceeding that meets the requirements of paragraph (e)(2) of  Y-this section. x` ` (2) Any state proceeding conducted pursuant to this section shall provide notice and an opportunity for comment to affected parties and shall result in the creation of a written factual record that is sufficient for purposes of review. The record of any state proceeding in which a state commission considers a cost study for purposes of establishing rates under this section shall include any such cost study.  Xq- 51.507` ` General rate structure standard. x(a) Element rates shall be structured consistently with the manner in which the costs of providing the elements are incurred. x(b) The costs of dedicated facilities shall be recovered through flatrated charges. x(c) The costs of shared facilities shall be recovered in a manner that efficiently apportions costs among users. Costs of shared facilities may be apportioned either through usagesensitive charges or capacitybased flatrated charges, if the state commission finds that such rates reasonably reflect the costs imposed by the various users. x(d) Recurring costs shall be recovered through recurring charges, unless an  YF&-incumbent LEC proves to a state commission that such recurring costs are de minimis. Recurring costs shall be considered de minimis when the costs of administering the recurring"/'0*((P(" charge would be excessive in relation to the amount of the recurring costs. x(e) State commissions may, where reasonable, require incumbent LECs to recover nonrecurring costs through recurring charges over a reasonable period of time. Nonrecurring charges shall be allocated efficiently among requesting telecommunications carriers, and shall not permit an incumbent LEC to recover more than the total forwardlooking economic cost of providing the applicable element. x(f) State commissions shall establish different rates for elements in at least three defined geographic areas within the state to reflect geographic cost differences. x` ` (1) To establish geographicallydeaveraged rates, state commissions may use existing densityrelated zone pricing plans described in 69.123 of this chapter, or other such costrelated zone plans established pursuant to state law. x` ` (2) In states not using such existing plans, state commissions must create a minimum of three costrelated rate zones.  X- 51.509` ` Rate structure standards for specific elements. xIn addition to the general rules set forth in 51.507 of this part, rates for specific elements shall comply with the following rate structure rules.  Y-x(a)  Local loops. Loop costs shall be recovered through flatrated charges.  Y-x(b) Local switching. Local switching costs shall be recovered through a combination of a flatrated charge for line ports and one or more flatrated or perminute usage charges for the switching matrix and for trunk ports.  Y-x(c) Dedicated transmission links. Dedicated transmission link costs shall be recovered through flatrated charges.  YT-x(d) Shared transmission facilities between tandem switches and end offices. The costs of shared transmission facilities between tandem switches and end offices may be recovered through usagesensitive charges, or in another manner consistent with the manner that the incumbent LEC incurs those costs.  Y-x(e) Tandem switching. Tandem switching costs may be recovered through usagesensitive charges, or in another manner consistent with the manner that the incumbent LEC incurs those costs.  Y#-x(f) Signaling and callrelated database services. Signaling and callrelated database service costs shall be usagesensitive, based on either the number of queries or the number of messages, with the exception of the dedicated circuits known as signaling links, the cost of which shall be recovered through flatrated charges. "/'0*((P("Ԍ Y-x(g) Collocation. Collocation costs shall be recovered consistent with the rate  Y-structure policies established in the Expanded Interconnection proceeding, CC Docket No. 91141.  X- 51.511` ` Forwardlooking economic cost per unit. x(a) The forwardlooking economic cost per unit of an element equals the forwardlooking economic cost of the element, as defined in 51.505 of this part, divided by a reasonable projection of the sum of the total number of units of the element that the incumbent LEC is likely to provide to requesting telecommunications carriers and the total number of units of the element that the incumbent LEC is likely to use in offering its own services, during a reasonable measuring period.  Y -x(b) ` ` (1) With respect to elements that an incumbent LEC offers on a flatrate  Y -basis, the number of units is defined as the discrete number of elements (e.g., local loops or local switch ports) that the incumbent LEC uses or provides. x` ` (2) With respect to elements that an incumbent LEC offers on a usage Y-sensitive basis, the number of units is defined as the unit of measurement of the usage (e.g., minutes of use or callrelated database queries) of the element.  X<- 51.513` ` Proxies for forwardlooking economic cost. x(a) A state commission may determine that the cost information available to it with respect to one or more elements does not support the adoption of a rate or rates that are consistent with the requirements set forth in 51.505 and 51.511 of this part. In that event, the state commission may establish a rate for an element that is consistent with the proxies specified in this section, provided that: x` ` (1) any rate established through use of such proxies shall be superseded once the state commission has completed review of a cost study that complies with the forwardlooking economic cost based pricing methodology described in 51.505 and 51.511 of this part, and has concluded that such study is a reasonable basis for establishing element rates; and x` ` (2) the state commission sets forth in writing a reasonable basis for its selection of a particular rate for the element. x(b) The constraints on proxybased rates described in this section apply on a geographically averaged basis. For purposes of determining whether geographically deaveraged rates for elements comply with the provisions of this section, a geographically averaged proxybased rate shall be computed based on the weighted average of the actual, geographically deaveraged rates that apply in separate geographic areas in a state.  YY%-x(c) Proxies for specific elements.  Y-'-x` ` (1) Local loops.  For each state listed below, the proxybased monthly rate"-'0*((P(" for unbundled local loops, on a statewide weighted average basis, shall be no greater than the figures listed in the table below. (The Commission has not established a default proxy ceiling for loop rates in Alaska).  Y-7:Table Aă  Xv- &# Statex` `  Proxy Ceiling@hStatepp   Proxy Ceiling  X_-  YH-ԇ 4 <DL!T$&)\+- 0d24Xhp x (#%'0*,.8135@8: