Goto Section: 61.46 | 61.48 | Table of Contents
FCC 61.47
Revised as of October 1, 2006
Goto Year:2005 |
2007
Sec. 61.47 Adjustments to the SBI; pricing bands.
(a) In connection with any price cap tariff filing proposing changes in the
rates of services in service categories, subcategories, or density zones,
the carrier must calculate an SBI value for each affected service category,
subcategory, or density zone pursuant to the following methodology:
SBI[t] = SBIt-1[Σ[i] v[i](P[t]/P[t−1])[i]]
where
SBI[t] = the proposed SBI value,
SBIt-1 = the existing SBI value,
P[t] = the proposed price for rate element “i,”
Pt-1 = the existing price for rate element “i,” and
v[i] = the current estimated revenue weight for rate element “i,” calculated
as the ratio of the base period demand for the rate element “i” priced at
the existing rate, to the base period demand for the entire group of rate
elements comprising the service category priced at existing rates.
(b) New services that are added to existing service categories or
subcategories must be included in the appropriate SBI calculations under
paragraph (a) of this section beginning at the first annual price cap tariff
filing following completion of the base period in which they are introduced.
This index adjustment requires that the demand for the new service during
the base period must be included in determining the weights used in
calculating the SBI.
(c) In the event that the introduction of a new service requires the
creation of a new service category or subcategory, a new SBI must be
established for that service category or subcategory beginning at the first
annual price cap tariff filing following completion of the base period in
which the new service is introduced. The new SBI should be initialized at a
value of 100, corresponding to the service category or subcategory rates in
effect the last day of the base period, and thereafter should be adjusted as
provided in paragraph (a) of this section.
(d) Any price cap tariff filing proposing rate restructuring shall require
an adjustment to the affected SBI pursuant to the general methodology
described in paragraph (a) of this section. This adjustment requires the
conversion of existing rates in the rate element group into rates of
equivalent value under the proposed structure, and then the comparison of
the existing rates that have been converted to reflect restructuring to the
proposed restructured rates. This calculation may require use of carrier
data and estimation techniques to assign customers of the preexisting
service to those services (including the new restructured service) that will
remain or become available after restructuring.
(e) Pricing bands shall be established each tariff year for each service
category and subcategory within a basket. Each band shall limit the pricing
flexibility of the service category, subcategory, as reflected in the SBI,
to an annual increase of a specified percent listed in this paragraph,
relative to the percentage change in the PCI for that basket, measured from
the levels in effect on the last day of the preceding tariff year. For local
exchanage carriers subject to price cap regulation as that term is defined
in Sec. 61.3(ee), there shall be no lower pricing band for any service category
or subcategory.
(1) Five percent:
(i) Local Switching (traffic sensitive basket)
(ii) Information (traffic sensitive basket)
(iii) Database Access Services (traffic sensitive basket)
(iv) 800 Database Vertical Services subservice (traffic sensitive basket)
(v) Billing Name and Address (traffic sensitive basket)
(vi) Local Switching Trunk Ports (traffic sensitive basket)
(vii) Signalling Transfer Point Port Termination (traffic sensitive basket)
(viii) Voice Grade (trunking and special access baskets)
(ix) Audio/Video (special access basket)
(x) Total High Capacity (trunking and special access baskets)
(xi) DS1 Subservice (trunking and special access baskets)
(xii) DS3 Subservice (trunking and special access baskets)
(xiii) Wideband (special access basket)
(2) Two percent:
(i) Tandem-Switched Transport (trunking basket)
(ii) Signalling for Tandem Switching (trunking basket)
(f) A local exchange carrier subject to price cap regulation may establish
density zones pursuant to the requirements set forth in Sec. 69.123 of this
chapter, for any service in the trunking and special access baskets, other
than the interconnection charge set forth in Sec. 69.124 of this chapter. The
pricing flexibility of each zone shall be limited to an annual increase of
15 percent, relative to the percentage change in the PCI for that basket,
measured from the levels in effect on the last day of the preceding tariff
year. There shall be no lower pricing band for any density zone.
(g)–(i)(l) [Reserved]
(2) Effective January 1, 1998, notwithstanding the requirements of paragraph
(a) of this section, if a local exchange carrier is recovering
interconnection charge revenues through per-minute rates pursuant to Sec. 69.155
of this chapter, any reductions to the PCI for the basket designated in
Sec. 61.42(d)(3) resulting from the application of the provisions of
Sec. 61.45(b)(1)(i) and from the application of the provisions of Sec. Sec. 61.45(i)(1)
and 61.45(i)(2) shall be directed to the SBI of the service category
designated in Sec. 61.42(d)(i).
(3) [Reserved]
(4) Effective January 1, 1998, the SBI reduction required by paragraph
(i)(2) of this section shall be determined by dividing the sum of the dollar
amount of any PCI reduction required by Sec. Sec. 61.45(i)(1) and 61.45(i)(2), by
the dollar amount associated with the SBI for the service category
designated in Sec. 61.42(e)(2)(vi), and multiplying the SBI for the service
category designated in Sec. 61.42(e)(2)(vi) by one minus the resulting ratio.
(5) Effective July 1, 2000, notwithstanding the requirements of paragraph
(a) of this section and subject to the limitations of Sec. 61.45(i), if a local
exchange carrier is recovering an ATS charge greater than its Target Rate as
set forth in Sec. 61.3(qq), any reductions to the PCI for the traffic sensitive
or trunking baskets designated in Sec. Sec. 61.42(d)(2) and 61.42(d)(3) resulting
from the application of the provisions of Sec. 61.45(b), and the formula in
Sec. 61.45(b) and from the application of the provisions of Sec. Sec. 61.45(i)(1), and
61.45(i)(2) shall be directed to the SBIs of the service categories
designated in Sec. Sec. 61.42(e)(1) and 61.42(e)(2).
(j) [Reserved]
(k) In no case shall a price cap local exchange carrier include data
associated with services offered pursuant to contract tariff in the
calculations required by this section.
[ 54 FR 19843 , May 8, 1989, as amended at 55 FR 42384 , Oct. 19, 1990; 56 FR 55239 , Oct. 25, 1991; 57 FR 54331 , Nov. 18, 1992; 58 FR 7868 , Feb. 10, 1993;
58 FR 48762 , Sept. 17, 1993; 59 FR 10302 , Mar. 4, 1994; 59 FR 32930 , June
27, 1994; 60 FR 19528 , Apr. 19, 1995; 60 FR 52346 , Oct. 6, 1995; 62 FR 4659 ,
Jan. 31, 1997; 62 FR 31932 , June 11, 1997; 62 FR 40460 , July 29, 1997; 64 FR 46590 , Aug. 26, 1999; 64 FR 51265 , Sept. 22, 1999; 65 FR 38698 , June 21,
2000; 65 FR 57742 , Sept. 26, 2000]
Goto Section: 61.46 | 61.48
Goto Year: 2005 |
2007
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