PUBLIC NOTICE FEDERAL COMMUNICATIONS COMMISSION 445 12th STREET, S.W. WASHINGTON, D.C. 20554 DA 00-1626 News media information 202/418-0500 Fax-On-Demand 202/418-2830 Internet: http://www.fcc.gov ftp.fcc.gov ******************************************************** NOTICE ******************************************************** This document was converted from WordPerfect or Word to ASCII Text format. Content from the original version of the document such as headers, footers, footnotes, endnotes, graphics, and page numbers will not show up in this text version. All text attributes such as bold, italic, underlining, etc. from the original document will not show up in this text version. Features of the original document layout such as columns, tables, line and letter spacing, pagination, and margins will not be preserved in the text version. If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** COMMON CARRIER BUREAU SEEKS COMMENT ON UPDATING LINE COUNTS FOR CALCULATING HIGH-COST UNIVERSAL SERVICE SUPPORT FOR NON-RURAL CARRIERS FOR THE YEAR 2001 PLEADING CYCLE ESTABLISHED CC Docket No. 96-45 Release Date: July 24, 2000 Comment Date: August 8, 2000 Reply Comment Date: August 15, 2000 On October 21, 1999, the Commission adopted two orders implementing a new high-cost universal service support mechanism for non-rural carriers for determining support beginning January 1, 2000. The Commission recognized the importance of updating the inputs in the universal service cost model as technology and other conditions change. On April 7, 2000, the Commission released an order clarifying how updated line count data, filed by non-rural carriers every quarter, would be used to determine support amounts for the year 2000. In this Public Notice, we seek comment on updating line count input values for purposes of determining support for the year 2001. Line counts are used for two general purposes in the high-cost support mechanism for non-rural carriers. First, line counts are used in the universal service cost model to estimate the forward-looking costs of providing supported services. Second, line counts are used to calculate support based on those costs and target that support to high-cost areas. In the Twentieth Reconsideration Order, the Commission clarified that the cost model would use the line count input values adopted by the Commission in October 1999, that is, year-end 1998 line counts. The Commission also clarified that support would be calculated and targeted using wire center line count data reported by the carriers on a quarterly basis. Under this approach, for each state, the average per-line support amounts are determined using the forward-looking cost estimates generated with the October 1999 line count inputs. The Universal Service Administrative Company (USAC) then determines statewide support amounts by multiplying the average per- line support amount by the number of lines reported. While the average per-line support amount does not change from quarter to quarter, the total support amounts change quarterly as the number of lines reported changes. We seek comment on updating line count data in the universal service cost model. If the line count input values are not updated, non-rural support would continue to increase indefinitely because of line growth. Thus, the non-rural high-cost support mechanism would never take into account the economies of scale resulting from serving more lines. On July 31, 2000, non-rural carriers will file year-end 1999 wire center line count data. We specifically seek comment on whether the Commission should update the line count input values used in the cost model for purposes of determining support amounts for the year 2001. If the Commission were to use these updated line counts in the model, we seek comment on how these line counts, which are USF loops, should be allocated to the classes of service used in the model. In particular, we seek comment on whether the Commission should use wire center line count data filed by non- rural carriers pursuant to the 1999 Data Request to allocate lines to the classes of service used in the model. If the Commission were to use the 1999 Data Request to allocate USF loops to switched line categories, we also seek comment on how to determine the number of special lines in each wire center. Now that carriers file wire center line count data, these line counts should be matched to the wire centers used in the model. Accordingly, we also seek comment on how to match the quarterly wire center line counts with the wire centers in the model. Pursuant to sections 1.415 and 1.419 of the Commission's rules, 47 C.F.R.  1.415, 1.419, interested parties may file comments on or before August 8, 2000, and reply comments on or before August 15, 2000. Comments may be filed using the Commission's Electronic Comment Filing System (ECFS) or by filing paper copies. See Electronic Filing of Documents in Rulemaking Proceedings, 63 Fed. Reg. 24,121 (1998). Comments filed through the ECFS can be sent as an electronic file via the Internet to . Generally, only one copy of an electronic submission must be filed. If multiple docket or rulemaking numbers appear in the caption of this proceeding, however, commenters must transmit one electronic copy of the comments to each docket or rulemaking number referenced in the caption. In completing the transmittal screen, commenters should include their full name, Postal Service mailing address, and the applicable docket or rulemaking number. Parties may also submit electronic comments by Internet e-mail. To receive filing instructions for e-mail comments, commenters should send an e-mail to ecfs@fcc.gov, and should include the following words in the body of the message, "get form