Sec.  54.207   Service areas.

   (a) The term service area means a geographic area established by a state
   commission for the purpose of determining universal service obligations and
   support mechanisms. A service area defines the overall area for which the
   carrier  shall  receive support from federal universal service support
   mechanisms.

   (b) In the case of a service area served by a rural telephone company,
   service  area  means  such company's “study area” unless and until the
   Commission and the states, after taking into account recommendations of a
   Federal-State  Joint Board instituted under section 410(c) of the Act,
   establish a different definition of service area for such company.

   (c) If a state commission proposes to define a service area served by a
   rural telephone company to be other than such company's study area, the
   Commission will consider that proposed definition in accordance with the
   procedures set forth in this paragraph.

   (1) A state commission or other party seeking the Commission's agreement in
   redefining a service area served by a rural telephone company shall submit a
   petition to the Commission. The petition shall contain:

   (i) The definition proposed by the state commission; and

   (ii) The state commission's ruling or other official statement presenting
   the  state  commission's reasons for adopting its proposed definition,
   including an analysis that takes into account the recommendations of any
   Federal-State Joint Board convened to provide recommendations with respect
   to the definition of a service area served by a rural telephone company.

   (2) The Commission shall issue a Public Notice of any such petition within
   fourteen (14) days of its receipt.

   (3) The Commission may initiate a proceeding to consider the petition within
   ninety (90) days of the release date of the Public Notice.

   (i) If the Commission initiates a proceeding to consider the petition, the
   proposed definition shall not take effect until both the state commission
   and the Commission agree upon the definition of a rural service area, in
   accordance with paragraph (b) of this section and section 214(e)(5) of the
   Act.

   (ii) If the Commission does not act on the petition within ninety (90) days
   of the release date of the Public Notice, the definition proposed by the
   state commission will be deemed approved by the Commission and shall take
   effect in accordance with state procedures.

   (d) The Commission may, on its own motion, initiate a proceeding to consider
   a definition of a service area served by a rural telephone company that is
   different from that company's study area. If it proposes such different
   definition, the Commission shall seek the agreement of the state commission
   according to this paragraph.

   (1) The Commission shall submit a petition to the state commission according
   to  that  state commission's procedures. The petition submitted to the
   relevant state commission shall contain:

   (i) The definition proposed by the Commission; and

   (ii) The Commission's decision presenting its reasons for adopting the
   proposed definition, including an analysis that takes into account the
   recommendations  of  any Federal-State Joint Board convened to provide
   recommendations with respect to the definition of a service area served by a
   rural telephone company.

   (2) The Commission's proposed definition shall not take effect until both
   the state commission and the Commission agree upon the definition of a rural
   service area, in accordance with paragraph (b) of this section and section
   214(e)(5) of the Act.

   (e) The Commission delegates its authority under paragraphs (c) and (d) of
   this section to the Chief, Wireline Competition Bureau.

   [ 62 FR 32948 , June 17, 1997, as amended at  67 FR 13226 , Mar. 21, 2002]