[Code of Federal Regulations]
[Title 7, Volume 11, Parts 1600 to 1899]
[Revised as of January 1, 2000]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1751]
[Page 353-358]
PART 1751--TELECOMMUNICATIONS SYSTEM PLANNING AND DESIGN CRITERIA, AND PROCEDURES
Subpart A--[Reserved]
1751.1--1751.99 [Reserved]
Subpart B--State Telecommunications Modernization Plan
1751.100 Definitions.
1751.101 General.
1751.102 Modernization Plan Developer; eligibility.
1751.103 Loan and loan advance requirements.
1751.104 Obtaining RUS approval of a proposed Modernization Plan.
1751.105 Amending a Modernization Plan.
1751.106 Modernization Plan; requirements.
Authority: 7 U.S.C. 901 et seq., 1921 et seq.; Pub. L. 103-354, 108
Stat. 3178 (7 U.S.C. 6941 et seq.).
Source: 60 FR 8174, Feb. 13, 1995, unless otherwise noted.
Subpart A--[Reserved]
Secs. 1751.1--1751.99 [Reserved]
Subpart B--State Telecommunications Modernization Plan
Sec. 1751.100 Definitions.
As used in this subpart:
Bit rate. The rate of transmission of telecommunications signals or
intelligence in binary (two state) form in bits per unit time, e.g., Mb/
s (megabits per second), kb/s (kilobits per second), etc.
Borrower. Any organization that has received an RUS loan designation
number and which has an outstanding telephone loan made by RUS or the
Rural Telephone Bank, or guaranteed by RUS, or which has a completed
loan application with RUS.
Emerging technologies. New or not fully developed methods of
telecommunications.
Modernization Plan (State Telecommunications Modernization Plan). A
State plan, which has been approved by
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RUS, for improving the telecommunications network of those
Telecommunications Providers covered by the plan. A Modernization Plan
must conform to the provisions of this subpart.
New facilities. Facilities which are wholly or partially constructed
or reconstructed after a short- or medium-term requirements start date,
as appropriate. This does not include connections or capacity extensions
within the wired capacity of existing plant such as adding line cards to
existing equipment.
Plan Developer. The entity creating the Modernization Plan for the
State, which may be the State PUC, the State legislature, or a numeric
majority of the RUS Borrowers within the State. When this part refers to
the PUC as the Plan Developer, this includes the State legislature.
PUC (Public Utilities Commission). The public utilities commission,
public service commission or other State body with such jurisdiction
over rates, service areas or other aspects of the services and operation
of providers of telecommunications services as vested in the commission
or other body authority, to the extent provided by the State, to guide
development of telecommunications services in the State. When this part
refers to the PUC as the Plan Developer, this includes the State
legislature.
RE Act. The Rural Electrification Act of 1936, as amended (7 U.S.C.
901 et seq.).
REA. The Rural Electrification Administration, formerly an agency of
the United States Department of Agriculture and predecessor agency to
RUS with respect to administering certain electric and telephone loan
programs.
RELRA. The Rural Electrification Loan Restructuring Act of 1993 (107
Stat. 1356).
RUS. The Rural Utilities Service, an agency of the United States
Department of Agriculture established pursuant to Section 232 of the
Federal Crop Insurance Reform and Department of Agriculture
Reorganization Act of 1994 (Pub. L. 103-354, 108 Stat. 3178 (7 U.S.C.
6941 et seq.)), successor to REA with respect to administering certain
electric and telephone programs. See 7 CFR 1700.1.
RUS cost-of-money loan. A loan made under section 305(d)(2) of the
RE Act bearing interest as determined under 7 CFR 1735.31(c). RUS cost-
of-money loans are made concurrently with RTB loans.
RUS hardship loan. A loan made by RUS under section 305(d)(1) of the
RE Act bearing interest at a rate of 5 percent per year.
RTB loan. A loan made by the Rural Telephone Bank (RTB) under
section 408 of the RE Act bearing interest as determined under 7 CFR
1610.10. RTB loans are made concurrently with RUS cost-of-money loans.
State. Each of the 50 states of the United States, the District of
Columbia, and the territories and insular possessions of the United
States. This does not include countries in the Compact of Free
Association.
Telecommunications. The transmission or reception of voice, data,
sounds, signals, pictures, writings, or signs of all kinds, by wire,
fiber, radio, light, or other visual or electromagnetic means.
Telecommunications providers. RUS Borrowers and if the Plan
Developer is a PUC, such other entities providing telecommunications
services as the developer of the Modernization Plan (See Sec. 1751.101)
may determine.
Wireline Service. Telecommunica-tions service provided over
telephone lines. It is characterized by a wire or wirelike connection
carrying electricity or light between the subscriber and the rest of the
telecommunications network. Wireline Service implies a physical
connection. Although radio may form part of the circuit, it is not the
major method of transmission as in radiotelephone.
Sec. 1751.101 General.
(a) It is the policy of RUS that every State have a Modernization
Plan which provides for the improvement of the State's
telecommunications network.
(b) A proposed Modernization Plan must be submitted to RUS for
approval. RUS will approve the proposed Modernization Plan if it
conforms to the provisions of this subpart. Once obtained, RUS's
approval of a Modernization Plan cannot be rescinded.
(c) The Modernization Plan shall not interfere with RUS's authority
to issue
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such other telecommunications standards, specifications, requirements,
and procurement rules as may be promulgated from time to time by RUS
including, without limitation, those set forth in 7 CFR part 1755.
(d) The Modernization Plan must, at a minimum, apply to RUS
Borrowers' wireline service areas. If a Modernization Plan is developed
by the PUC, RUS encourages, but does not require, that the Modernization
Plan's requirements apply to the rural service areas of all providers of
telecommunications services in the State. A PUC's decision not to
include non-RUS Borrowers will not prejudice RUS approval of that PUC's
Modernization Plan. The PUC may also, at its option, extend coverage of
the Modernization Plan to all service areas of all providers of
telecommunications services in the State. In addition, while the
requirements and goals contained in Sec. 1751.106 apply only to wireline
services, the PUC, at its discretion, may extend coverage of
Modernization Plans to wireless or other communications services in the
State as it deems appropriate. Borrower-developed Modernization Plans
apply only to Borrowers.
Sec. 1751.102 Modernization Plan Developer; eligibility.
(a) Each PUC is eligible until February 13, 1996 to develop a
proposed Modernization Plan and deliver it to RUS. RUS will review and
consider for approval all PUC-developed Modernization Plans received by
RUS within this one year period. The review and approval, if any, may
occur after the one year period ends even though the PUC is no longer
eligible to submit a proposed Modernization Plan.
(b) The PUC must notify all Telecommunications Providers in the
State and other interested parties of its intent to develop a proposed
Modernization Plan. The PUC is encouraged to consider all
Telecommunications Providers' and interested parties' views and
incorporate these views into the Modernization Plan. In the event that
the PUC does not intend to develop a proposed Modernization Plan, RUS
requests that the PUC inform RUS of this decision as soon as possible.
(c)(1) If the PUC is no longer eligible to develop a Modernization
Plan or has informed RUS that it will not develop a Modernization Plan,
as described in paragraphs (a) and (b) of this section, a majority of
the Borrowers within the State may develop the Modernization Plan. If a
majority of Borrowers develops the Modernization Plan, the following
apply:
(i) All Borrowers shall be given reasonable notice of and shall be
encouraged to attend and contribute to all meetings and other
proceedings relating to the development of the Modernization Plan; and
(ii) Borrowers developing a Modernization Plan are encouraged to
solicit the views of other providers of telecommunications services and
interested parties in the State.
(2) There is no time limit placed on Borrowers to develop a
Modernization Plan. Borrowers should be aware that certain types of
loans may be restricted until a Modernization Plan is approved. See
Sec. 1751.103.
Sec. 1751.103 Loan and loan advance requirements.
(a) For information about loan eligibility requirements in relation
to the Modernization Plan, see 7 CFR part 1735. In particular, beginning
February 13, 1996, RUS will make RUS hardship loans, RUS cost-of-money
loans, and RTB loans for facilities and other RE Act purposes in a State
only if:
(1) The State has an RUS approved Modernization Plan; and
(2) The Borrower to whom the loan is to be made is participating in
the Modernization Plan for the State. A Borrower is considered to be
participating if, in RUS's opinion, the purposes of the loan requested
by the Borrower are consistent with the Borrower achieving the
requirements stated in the Modernization Plan within the timeframe
stated in the Modernization Plan unless RUS has determined that
achieving the requirements is not technically or economically feasible.
(b) With regard to the three types of loans discussed in paragraph
(a), only loans approved after the date the State has an RUS approved
Modernization Plan are subject to complying with the Modernization Plan.
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(c) For loans subject to complying with the Modernization Plan,
advances will not be made if, in RUS's opinion, the advances are not
consistent with achieving the requirements of the Modernization Plan.
Sec. 1751.104 Obtaining RUS approval of a proposed Modernization Plan.
(a) To obtain RUS approval of a proposed Modernization Plan, the
Plan Developer must submit the following to RUS:
(1) A certified copy of the statute or PUC order, if the PUC is the
Plan Developer, or a written request for RUS approval of the proposed
Modernization Plan signed by an authorized representative of the Plan
Developer, if a majority of Borrowers is the Plan Developer; and
(2) Three copies of the proposed Modernization Plan.
(b) Generally, RUS will review the proposed Modernization Plan
within (30) days and either:
(1) Approve the Modernization Plan if it conforms to the provisions
of this subpart in which case RUS will return a copy of the
Modernization Plan with notice of approval to the Plan Developer; or
(2) Not approve the proposed Modernization Plan if it does not
conform to the provisions of this subpart. In this event, RUS will
return the proposed Modernization Plan to the Plan Developer with
specific written comments and suggestions for modifying the proposed
Modernization Plan so that it will conform to the provisions of this
subpart. If the Plan Developer remains eligible, RUS will invite the
Plan Developer to submit a modified proposed Modernization Plan for RUS
consideration. This process can continue until the Plan Developer gains
approval of a proposed Modernization Plan unless the Plan Developer is a
PUC whose eligibility has expired. If a PUC's eligibility has expired,
RUS will return the proposed Modernization Plan unapproved. Because RUS
does not have authority to extend the term of a PUC's eligibility, RUS
recommends that the PUC submit a proposed Modernization Plan at least 90
days in advance of February 13, 1996 to allow time for this process.
Sec. 1751.105 Amending a Modernization Plan.
(a) RUS understands that changes in standards, technology,
regulation, and the economy could indicate that an RUS-approved
Modernization Plan should be amended.
(b) The Plan Developer of the Modernization Plan may amend the
Modernization Plan if RUS finds the proposed changes continue to conform
to the provisions of this subpart.
(c) The procedure for requesting approval of an amended
Modernization Plan is identical to the procedure for a proposed
Modernization Plan except that there are no time limits on the
eligibility of the Plan Developer.
(d) The existing Modernization Plan remains in force until RUS has
approved the proposed amended Modernization Plan.
(e) RUS may from time to time revise these regulations to
incorporate newer technological and economic standards that RUS believes
represent more desirable goals for the future course of
telecommunications services. Such revisions will be made in accordance
with the Administrative Procedure Act. These revisions shall not
invalidate Modernization Plans approved by RUS but shall be used by RUS
to determine whether to approve amendments to Modernization Plans
presented for RUS approval after March 15, 1995.
Sec. 1751.106 Modernization Plan; requirements.
(a) The requirements for a Modernization Plan as stated in RELRA
are:
(1) The plan must provide for the elimination of party line service.
(2) The plan must provide for the availability of telecommunications
services for improved business, educational, and medical services.
(3) The plan must encourage and improve computer networks and
information highways for subscribers in rural areas.
(4) The plan must provide for--
(i) Subscribers in rural areas to be able to receive through
telephone lines--
(A) Conference calling;
(B) Video images; and
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(C) Data at a rate of at least 1,000,000 bits of information per
second; and
(ii) The proper routing of information to subscribers.
(5) The plan must provide for uniform deployment schedules to ensure
that advanced services are deployed at the same time in rural and
nonrural areas.
(6) The plan must provide for such additional requirements for
service standards as may be required by the Administrator.
(b) To implement the requirements of the law described in paragraph
(a) of this section, RUS has set minimum requirements as described in
paragraphs (i) and (j) of this section. They are grouped into short-term
and medium-term requirements. RUS has also included long-term goals
which are not requirements. The Modernization Plan must meet all of the
statutory requirements of RELRA and shall provide that short- and
medium-term requirements be implemented as set forth in this section of
the regulation except that the PUC, if it is the Plan Developer, or RUS,
if a majority of Borrowers is the Plan Developer, may approve extensions
of time if the required investment is not economically feasible or if
the best available telecommunications technology lacks the capability to
enable the Telecommunications Provider receiving the extension to comply
with the Modernization Plan. Extensions shall be granted only on a case-
by-case basis and generally shall not exceed a total of five years from
the first such extension granted to the Telecommunications Provider.
(c) Each State's Modernization Plan shall be a strategic development
proposal for modernizing the telecommunications network of the
Telecommunications Providers covered by the Modernization Plan. In
addition to implementing the requirements described in paragraphs (a),
(i), and (j) of this section, the Modernization Plan shall include a
short engineering description of the characteristics of a future
telecommunications structure that would enable all Telecommunications
Providers to achieve the requirements and goals of the Modernization
Plan.
(d) Within the scope of Sec. 1751.101(d), if the Plan Developer is
the PUC, the Modernization Plan shall name the Telecommunications
Providers in the State, in addition to Borrowers, that are covered by
the Modernization Plan.
(e) The Modernization Plan must require that the design of the
network provided by Telecommunications Providers allow for the
expeditious deployment and integration of such emerging technologies as
may from time to time become commercially feasible.
(f) The Modernization Plan must provide guidelines to
Telecommunications Providers for the development of affordable tariffs
for medical links and distance learning services.
(g) With regard to the uniform deployment requirement of the law
restated in paragraph (a)(5) of this section, if services cannot be
deployed at the same time, only the minimum feasible interval of time
shall separate availability of the services in rural and nonrural areas.
(h) The Modernization Plan must make provision for reliable powering
of ordinary voice telephone service operating over those portions of the
telecommunications network which are not network powered. In the event
of electric utility power outages, an alternative source of power must
be available to ensure reliable voice service.
(i) Short-term requirements. (1) The ``short-term requirements start
date'' is the date one year after the date RUS approves the
Modernization Plan for the State.
(2) All New Facilities providing Wireline Service after the short-
term requirements start date, even if the construction began before such
date, shall be constructed so that:
(i) Every subscriber can be provided 1-party service.
(ii) The New Facilities are suitable, as built or with additional
equipment, to provide transmission and reception of data at a rate no
lower than 1 Mb/sec.
(3) All switching equipment installed by a Telecommunications
Provider after the short-term requirements start date shall be capable
of:
(i) Providing custom calling features. At a minimum, custom calling
features must include call waiting, call forwarding, abbreviated
dialing, and three-way calling; and
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(ii) Providing E911 service for areas served by the
Telecommunication Provider when requested by the government responsible
for this service.
(j) Medium-term requirements. (1) The ``medium-term requirements
start date'' is the date six years after the date RUS approves the
Modernization Plan for the State, or such earlier date as the
Modernization Plan shall provide.
(2) All New Facilities providing Wireline Service after the medium-
term requirements start date, even if the construction began before such
date, shall be capable, as built or with additional equipment, of
transmitting video to a subscriber. The video must be capable of
depicting a reasonable representation of motion. The frame rate,
resolution, and other measures of audio and video quality shall be
determined by the Plan Developer.
(3) No later than the medium-term requirements start date, all
switching equipment of Telecommunications Providers covered by the
Modernization Plan must be capable of providing E911 service when
requested by the government responsible for this service.
(4) No later than five years after the medium-term requirements
start date, one-party service must be provided upon demand to any
subscriber of a Telecommunications Provider covered by the Modernization
Plan.
(k) Long-term goals. RUS suggests, but does not require, that the
provisions of each Modernization Plan be consistent with the
accomplishment of the following:
(1) The elimination of party line service.
(2) For subscribers that desire the service, universal availability
of:
(i) Digital voice and data service (56-164 kb/sec).
(ii) Service that provides transmission and reception of high bit
rate (no less than 1 Mb/sec) data.
(iii) Service that provides reception of video as described in
paragraph (j)(2) of this section.