§  54.202   Additional requirements for Commission designation of eligible
telecommunications carriers.

   (a) In order to be designated an eligible telecommunications carrier
   under section 214(e)(6), any common carrier in its application must:

   (1) (i) Commit to provide service throughout its proposed designated
   service area to all customers making a reasonable request for service.
   Each applicant shall certify that it will:

   (A) Provide service on a timely basis to requesting customers within
   the applicant's service area where the applicant's network already
   passes the potential customer's premises; and

   (B) Provide service within a reasonable period of time, if the
   potential customer is within the applicant's licensed service area but
   outside its existing network coverage, if service can be provided at
   reasonable cost by:

   ( 1 ) Modifying or replacing the requesting customer's equipment;

   ( 2 ) Deploying a roof-mounted antenna or other equipment;

   ( 3 ) Adjusting the nearest cell tower;

   ( 4 ) Adjusting network or customer facilities;

   ( 5 ) Reselling services from another carrier's facilities to provide
   service; or

   ( 6 ) Employing, leasing or constructing an additional cell site, cell
   extender, repeater, or other similar equipment.

   (ii) Submit a five-year plan that describes with specificity proposed
   improvements or upgrades to the applicant's network on a wire
   center-by-wire center basis throughout its proposed designated service
   area. Each applicant shall demonstrate how signal quality, coverage or
   capacity will improve due to the receipt of high-cost support; the
   projected start date and completion date for each improvement and the
   estimated amount of investment for each project that is funded by
   high-cost support; the specific geographic areas where the improvements
   will be made; and the estimated population that will be served as a
   result of the improvements. If an applicant believes that service
   improvements in a particular wire center are not needed, it must
   explain its basis for this determination and demonstrate how funding
   will otherwise be used to further the provision of supported services
   in that area.

   (2) Demonstrate its ability to remain functional in emergency
   situations, including a demonstration that it has a reasonable amount
   of back-up power to ensure functionality without an external power
   source, is able to reroute traffic around damaged facilities, and is
   capable of managing traffic spikes resulting from emergency situations.

   (3) Demonstrate that it will satisfy applicable consumer protection and
   service quality standards. A commitment by wireless applicants to
   comply with the Cellular Telecommunications and Internet Association's
   Consumer Code for Wireless Service will satisfy this requirement. Other
   commitments will be considered on a case-by-case basis.

   (4) Demonstrate that it offers a local usage plan comparable to the one
   offered by the incumbent LEC in the service areas for which it seeks
   designation.

   (5) Certify that the carrier acknowledges that the Commission may
   require it to provide equal access to long distance carriers in the
   event that no other eligible telecommunications carrier is providing
   equal access within the service area.

   (b) Any common carrier that has been designated under section 214(e)(6)
   as an eligible telecommunications carrier or that has submitted its
   application for designation under section 214(e)(6) before the
   effective date of these rules must submit the information required by
   paragraph (a) of this section no later than October 1, 2006, as part of
   its annual reporting requirements under § 54.209.

   (c) Public Interest Standard. Prior to designating an eligible
   telecommunications carrier pursuant to section 214(e)(6), the
   Commission determines that such designation is in the public interest.
   In doing so, the Commission shall consider the benefits of increased
   consumer choice, and the unique advantages and disadvantages of the
   applicant's service offering. In instances where an eligible
   telecommunications carrier applicant seeks designation below the study
   area level of a rural telephone company, the Commission shall also
   conduct a creamskimming analysis that compares the population density
   of each wire center in which the eligible telecommunications carrier
   applicant seeks designation against that of the wire centers in the
   study area in which the eligible telecommunications carrier applicant
   does not seek designation. In its creamskimming analysis, the
   Commission shall consider other factors, such as disaggregation of
   support pursuant to § 54.315 by the incumbent local exchange carrier.

   (d) A common carrier seeking designation as an eligible
   telecommunications carrier under section 214(e)(6) for any part of
   tribal lands shall provide a copy of its petition to the affected
   tribal government and tribal regulatory authority, as applicable, at
   the time it files its petition with the Federal Communications
   Commission. In addition, the Commission shall send the relevant public
   notice seeking comment on any petition for designation as an eligible
   telecommunications carrier on tribal lands, at the time it is released,
   to the affected tribal government and tribal regulatory authority, as
   applicable, by overnight express mail.

   (e) All eligible telecommunications carriers shall retain all records
   required to demonstrate to auditors that the support received was
   consistent with the universal service high-cost program rules. These
   records should include the following: data supporting line count
   filings; historical customer records; fixed asset property accounting
   records; general ledgers; invoice copies for the purchase and
   maintenance of equipment; maintenance contracts for the upgrade or
   equipment; and any other relevant documentation. This documentation
   must be maintained for at least five years from the receipt of funding.

   [ 70 FR 29978 , May 25, 2005, as amended at  72 FR 54217 , Sept. 24, 2007]