FCC 64.901 Revised as of October 1, 2006
Goto Year:2005 |
2007
Sec. 64.901 Allocation of costs.
(a) Carriers required to separate their regulated costs from nonregulated
costs shall use the attributable cost method of cost allocation for such
purpose.
(b) In assigning or allocating costs to regulated and nonregulated
activities, carriers shall follow the principles described herein.
(1) Tariffed services provided to a nonregulated activity will be charged to
the nonregulated activity at the tariffed rates and credited to the
regulated revenue account for that service. Nontariffed services, offered
pursuant to a section 252(e) agreement, provided to a nonregulated activity
will be charged to the nonregulated activity at the amount set forth in the
applicable interconnection agreement approved by a state commission pursuant
to section 252(e) and credited to the regulated revenue account for that
service.
(2) Costs shall be directly assigned to either regulated or nonregulated
activities whenever possible.
(3) Costs which cannot be directly assigned to either regulated or
nonregulated activities will be described as common costs. Common costs
shall be grouped into homogeneous cost categories designed to facilitate the
proper allocation of costs between a carrier's regulated and nonregulated
activities. Each cost category shall be allocated between regulated and
nonregulated activities in accordance with the following hierarchy:
(i) Whenever possible, common cost categories are to be allocated based upon
direct analysis of the origin of the cost themselves.
(ii) When direct analysis is not possible, common cost categories shall be
allocated based upon an indirect, cost-causative linkage to another cost
category (or group of cost categories) for which a direct assignment or
allocation is available.
(iii) When neither direct nor indirect measures of cost allocation can be
found, the cost category shall be allocated based upon a general allocator
computed by using the ratio of all expenses directly assigned or attributed
to regulated and nonregulated activities.
(4) The allocation of central office equipment and outside plant investment
costs between regulated and nonregulated activities shall be based upon the
relative regulated and nonregulated usage of the investment during the
calendar year when nonregulated usage is greatest in comparison to regulated
usage during the three calendar years beginning with the calendar year
during which the investment usage forecast is filed.
(c) A telecommunications carrier may not use services that are not
competitive to subsidize services subject to competition. Services included
in the definition of universal service shall bear no more than a reasonable
share of the joint and common costs of facilities used to provide those
services.
[ 52 FR 6560 , Mar. 4, 1987, as amended at 52 FR 39534 , Oct. 22, 1987; 54 FR 49762 , Dec. 1, 1989; 62 FR 45588 , Aug. 28, 1997; 67 FR 5702 , Feb. 6, 2002]
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