Order [ Text Version | Wordperfect Version | HTML Version ]

Universal Service Data Request Order requiring information from certain large LECs to enable the Commission to evaluate forward-looking economic cost models. Version includes corrections specified in 7/10/97 Errata.

Form [ Text Version | Wordperfect Version ]

Form for designating that certain information submitted by respondents is confidential. Version includes corrections specified in 7/10/97 Errata.

Spreadsheet [ Excel Version ]

Data Request Spreadsheet that must be completed by respondents to the Universal Service Data Request. Version includes corrections specified in 7/10/97 Errata.

Spreadsheet Attachment 1 [ Excel Version ]

Must be used for questions requiring a response for each wire center.

Spreadsheet Attachment 2 [ Excel Version ]

Must be used for questions requiring a response for each switch or digital line carrier.

Errata [ Text Version | Wordperfect Version ]

Errata to Universal Service Data Request Order correcting minor errors relating to OMB approval.

DA 97-1433
Corrected Version

In the Matter of	)
	)
Federal-State Joint Board on	)	CC Docket No. 96-45
Universal Service	)
	)

1. In conjunction with the Commission's proceeding to select a forward-looking mechanism for support to non-rural local exchange carriers (LECs) serving rural, insular, and high cost areas,⁽¹⁾ we request certain information from the Regional Holding Companies (RHCs),⁽²⁾ GTE, Sprint Corporation (Sprint), Anchorage Telephone Utility, and Puerto Rico Telephone Company. The requested information will enable the Commission to evaluate models for estimating the forward-looking economic costs that non-rural LECs would incur to provide universal service in rural, insular, and high cost areas.

2. In our May 1997 Report and Order on Universal Service (Order), we adopted a plan for establishing universal service support mechanisms for rural, insular, and high cost areas that will replace current implicit federal subsidies with explicit support based on the forward-looking economic cost of providing supported services.⁽³⁾ We adopted a forward-looking economic cost methdology⁽⁴⁾ that will calculate universal service support in four steps. First, we will estimate the forward-looking economic costs of providing universal service in rural, insular, and high cost areas.⁽⁵⁾ Second, we decided to establish a nationwide revenue benchmark calculated on the basis of average revenue per line.⁽⁶⁾ Third, we will calculate the difference between the forward-looking economic cost and the benchmark.⁽⁷⁾ Fourth, federal support will be 25 percent of that difference, corresponding to the percentage of interstate allocated loop.⁽⁸⁾ We further decided to use forward-looking economic cost studies conducted by state commissions that choose to submit such cost studies to determine universal service support.⁽⁹⁾ Where a state elects not to conduct such a study, we decided to determine the forward-looking economic cost of providing universal service in that state according to a forward-looking economic cost mechanism adopted by the Commission with assistance from the Federal-State Joint Board on Universal Service (Joint Board).⁽¹⁰⁾ We intend to replace the current universal service support mechanisms with a forward-looking economic cost mechanism to determine support for non-rural LECs beginning January 1, 1999.

3. As noted in the Order, we intend to seek further comment on the mechanism we should adopt to estimate the forward-looking economic costs that non-rural local exchange carriers (LECs) would incur to provide universal service in rural, insular, and high cost areas (hereinafter "the selected mechanism").⁽¹¹⁾ The complexity of the forward-looking economic cost models submitted for our consideration in 1997, combined with the conflicting design components and lack of supporting data for many of the input values, precluded the Commission from choosing a mechanism on May 8, 1997.⁽¹²⁾

We therefore intend to seek further comment on the platform design and input variables that should be used in the selected mechanism. We believe that, in addition to comments that we receive in this proceeding, specific information from large LECs is necessary to allow thorough examination of the models before us, and adoption of a mechanism for determining support that will send the correct signals for entry, investment, and innovation.

4. Purpose of Data Request. This data request is being issued to assist the Commission in adopting a mechanism that estimates the forward-looking economic costs that non-rural LECs would incur to provide universal service in rural, high cost, and insular areas.

5. LECs Subject to Data Request. The RHCs, GTE, Sprint, Anchorage Telephone Utility, and Puerto Rico Telephone Company must respond to this data request.

6. Instructions for Data Request. Respondents shall comply with this data request by responding to the questions in the attached spreadsheet using Excel software, version 7.0 or earlier, and by providing other information in the format indicated in the data request. Respondents may obtain the attached spreadsheet on a computer diskette by contacting Sheryl Todd at 202-418-7400. Respondents should add columns or rows to the spreadsheet, as appropriate, for additional study areas, wire centers, or switches. Because responses will be electronically compiled into a consolidated database, however, respondents should not insert, delete, or move any rows, columns, or text other than those that are necessary for a complete response. "Not applicable" responses should be designated by entering "NA" in the appropriate data cell and must be explained on a separate sheet of paper.

7. Universal Service Data Request.

(1) Loops. For the year ending December 31, 1996, indicate how many of each of the following type of loops there are for each wire center in each of your study areas:

(a) Switched working loops

(i) Residential

(ii) Single-line business

(iii) Multi-line business

(b) Non-switched working loops

(c) Non-working loops

(d) Non-revenue loops (please explain why these loops do not generate revenue)

Please note that:

-- Working loops include loops used for all services: message and special, revenue and non-revenue.

-- Non-working loops include defective loops, loops reserved for some future activity, and loops with a pending connect status.

-- Switched loops should only be counted as part of the wire centers in which they are switched.

-- For non-switched services, count the actual number of subscriber loops used to provide the service, not the voice frequency equivalent. For example, DS1 service provided over two copper pairs would be counted as two subscriber loops.

-- Foreign exchange lines or trunks should be counted as non-switched in the wire center where the customer and subscriber loop is located.

-- For switched loops served via a concentrator or carrier system, count the actual number of customer lines served, not the transmission channels at the wire center.

(2) Loop length studies. Provide the most recent loop length study conducted by or for your company for each of your study areas. List loop lengths, and for each loop length, specify how many loops are that length. Include all statistical studies used to support that loop length study and a glossary defining all terms not commonly used by other LECs. Describe how the study was performed. Indicate whether the study was performed using a stratified sample, and whether the stratification was based on density cells, study areas, or wire centers. Specifically indicate whether the study includes both working and non-working loops or only working loops. List any other modifications or assumptions made in obtaining your loop sample. (See definition of working and non-working loops provided in Question 1.)

(3) Subscriber line usage studies. Provide the most recent subscriber line usage study or equivalent performed by or for your company for each of your study areas. Indicate the dates over which the study was performed, the number of lines sampled by service category and the wire centers included in the study. Include a glossary defining all terms not commonly used by other incumbent LECs.

(4) Basic residential service offerings. For each basic residential service plan that includes a per-minute or per-call charge, provide the number of calls or minutes that are not charged on a per-call or per-minute basis, if any, that are included as part of the service plan.

(5) Apportionment of cable costs. Indicate the percentage attributable to buried cable (Account 2423), underground cable (Account 2422), and aerial cable (Account 2421) for each of the following: (a) gross investment in distribution plant; (b) gross investment in feeder plant; (c) distribution loop length (in miles or kilometers); and (d) feeder loop length (in miles or kilometers). Please provide this information on a wire center basis. If it is not available on a wire center basis, provide the information on a study area basis.

(6) Installation cost data for cable facilities. Provide all data on the cost of installing cable facilities that have been submitted to a federal or state commission in 1995 or 1996. Include a glossary defining all terms not commonly used by other incumbent LECs.

(7) Subscriber utilization studies. Provide the most recent subscriber cable utilization study performed by or for your company for each of your study areas and provide the information by wire center. Separately identify utilization by feeder and by distribution. Please define utilization as the ratio of working loops (as defined in Question 1 above) to total loops. Include a glossary defining all terms not commonly used by other LECs.

(8) Structure-sharing percentages. What percent of the structures that support your outside plant are shared with other companies? Provide the sharing percentage, by study area, for each of the following categories: (a) poles; (b) conduits; and (c) trenches. The sharing percentage is the proportion of investment that is assigned to the telephone company. Provide the information separately for interoffice (trunk) cable and subscriber cable.

(9) Multi-line residential customers. How many of your residential customers are multi-line customers, where multi-line means multiple communications channels and not multiple telephone numbers? Provide this line count on a study area and a wire center basis. Indicate the number of these channels that are served through a basic-rate ISDN service.

(10) Poles. Provide the current cost of a 40-foot class 4 treated southern pine pole and the average cost of installing such a pole in 1996.

(11) Detailed continuing property records.

(a) For the year ending December 31, 1995, provide the detailed continuing property record (DCPR) balance for USOA Account 2212 (digital electronic switching) for each wire center and the number of switched lines (not line numbers) working from the digital switches in that wire center.

(b) For the above account, summarize the material cost and the installed cost by wire center and by all characters of the equipment category code (EQCAT or ECN) used in your DCPR records. Provide translation tables for the EQCAT or ECN codes and for the location codes used in the account 2212 DCPR records. Provide the DCPR summaries in ASCII files on 3 1/2" floppy disks, DC2120 magnetic tape cartridges, Iomega ZIP disks, or Iomega JAZ disks for use on a PC platform.

(12) Digital switches. For all digital switches purchased in 1995 and 1996, provide the material and installed cost of each switch and the number of lines served by each switch at the end of its first twelve months in service. If a switch has not been in service for twelve months, state the length of service and the number of lines it serves at present.

(13) Contracts with switching manufacturers. For every switching manufacturer with which you currently have a contract:

(a) Provide a copy of that contract. Indicate if you consider the contract proprietary, and follow the instructions in para. 8 for filing confidential information.

(b) If not clearly defined in the contract, please provide definitions of the following terms as they were used in the contract: (i) new switch; (ii) growth to a new switch; (iii) growth to an embedded switch; (iv) remote switch; and (v) remote switching module.

(c) Does the contract price include the removal of the existing switch(es)?

(d) What time period does the contract cover?

(e) How many lines are you committed to install under the contract, if any?

(14) Digital line carrier devices. For all digital line carrier devices purchased in 1995 and 1996, provide the following:

(a) The material and installation cost of each device. (Provide the cost of common equipment separately from the cost of per-line equipment.)

(b) The number of lines served by each device at the end of its first twelve months in service.

(15) Drop lines. With regard to drop lines that you install for residential customers:

(a) Describe the number of copper pairs that you normally install per dwelling unit in both single family and multi-family dwellings.

(b) If multi-family dwelling units are served by fiber, provide the number of DS0 transmission channels per dwelling unit.

(c) If you install a different number of pairs depending on whether the drop is aerial or buried, indicate the difference in number.

(16) Maintenance expenses. With regard to maintenance expenses for switches, circuit equipment, and cable and wire facilities:

(a) Provide the most recent estimate of these expenses as incorporated into a forward-looking or economic cost study for each of your study areas that was filed with a state commission or the Federal Communications Commission. Indicate the date and docket number of each submission, and the commission(s) to which it was submitted.

(b) Explain the method used to determine these expenses and provide a copy of the calculations that support the expense estimate.

(c) Provide evidence, if possible, of any differences in maintenance expenses between fiber and copper cable.

(d) Provide evidence, if possible, of any differences in maintenance expenses among aerial, underground, and buried cable.

(17) Riser cable.

(a) Do you currently install riser cable in multi-unit residential housing or commercial buildings?

(b) If so, under what conditions do you consider this installed cable to be part of the regulated total plant in service?

(c) What percentage of the installed riser cable do you include in regulated total plant in service?

(18) Residential, single-line business, and multi-line business customers. For residential, single-line business, and multi-line business customers for June 1996, provide the following for each study area:

(a) The total local service revenue and the number of customers. Total local service revenue includes flat monthly charges, local usage charges, taxes, extended area service charges (mandatory and optional), local mileage and zone charges, local information charges, federal and state subscriber line charges, other mandatory surcharges, and optional services, such as touch tone, call waiting, and call forwarding.

(b) The sum of taxes and 911 surcharges.

(c) The total of your billings for toll service for which you provided the toll service.

(d) The total of your billings for which you billed for toll services provided by another carrier.

(e) For multi-line residential customers, where multi-line means multiple communications channels and not multiple telephone numbers, provide the revenue generated by the purchase of the additional lines.

(19) Miles served by wire center. Provide the number of square miles served by each wire center.

(20) Cost of land and buildings. For each wire center, provide the historical cost of the land and buildings. Indicate the number of switches in each wire center.

(21) Contracts with digital line carrier manufacturers. For every digital line carrier manufacturer with which you currently have a contract:

(a) Provide a copy of that contract. Indicate if you consider the contract proprietary, and follow the instructions in para. 8 for filing confidential information.

(b) What time period does the contract cover?

8. Confidential Information. If a respondent considers that its response to any portion of this data request constitutes confidential commercial or financial information, the respondent should comply with 47 C.F.R. section 0.459, the Commission's rules for requesting that submitted information be withheld from public inspection, and should observe the following procedure: The respondent should complete the entire data request with the exception of those specific responses that are considered confidential information. This expurgated version should be filed and distributed in accordance with 47 C.F.R. section 0.459 and the instructions found in "Responses to Data Request," below. The respondent should then duplicate the filed computer disks and paper copies, add the confidential data, and return one full confidential copy to Charles Keller at 2100 M Street, NW, Room 8918, Washington, DC 20554. Each confidential disk and paper copy must be clearly marked "Confidential." In addition, the confidential disks and paper copies must be accompanied by a completed copy of the "Designation of Confidential Information" form attached to these instructions. The "Designation of Confidential Information" form must be signed by an authorized corporate officer or agent, and must list by question number all of the data responses considered confidential commercial or financial information. For each such response, indicate the reason for withholding the information from public inspection, and the facts on which those reasons are based. Copies of the "Designation of Confidential Information" form must also be filed and distributed with the expurgated data response, in accordance with the instructions found in "Responses to Data Request," below.

9. Public Reporting Burden. The public reporting burden for this collection of information is estimated to average 488 hours per respondent, including the time for reviewing instructions, searching existing data sources, gathering the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing the burden, to the Federal Communications Commission, Records Management Division, Room 234, Paperwork Reduction Project (3060-0781), Washington, DC 20554.

10. OMB Approval. Approved by OMB, 3060-0781, Expires 1/31/98, Burden hour per respondent: 488 average. An agency may not conduct or sponsor and a person is not required to respond to a collection of information unless the agency displays a currently valid control number.

11. Questions. Any questions regarding the data request or problems in completing it should be communicated to Charles Keller, 202-418-7400, ckeller@fcc.gov.

12. Responses to Data Request. Responses must be submitted on or before August 15, 1997. For a response to be complete, it must include a paper copy of all information requested herein, including a paper copy of the completed Excel spreadsheet and of the information requested in Data Request Question 11, except as provided in paragraph 8. A complete response must also include an electronic copy of the completed Excel spreadsheet on a 3.5" computer diskette and an electronic copy of the information requested in Data Request Question 11 in one of the prescribed electronic formats (hereinafter referred to as "information in the prescribed formats).

13. A signed original of a complete paper copy of each respondent's response, and one copy of information in the prescribed electronic formats, must be transmitted to the Commission's copy contractor, International Transcription Services, Inc., 2100 M Street, NW, Suite 140, Washington, DC 20037. Two complete paper copies, and two copies of information in the prescribed electronic formats, must be transmitted to Sheryl Todd, Universal Service Branch, Accounting and Audits Division, Common Carrier Bureau, Federal Communications Commission, 2100 M Street, NW, Room 8611, Washington, DC 20554.

14. Accordingly, pursuant to Sections 5(c), 201-205, 213, 215, 218, 220(c), 254 and 403 of the Communications Act of 1934, as amended, 47 U.S.C. §§ 155(c), 201-205, 213, 215, 218, 220(c), 254, and 403, and Sections 0.91 and 0.291 of the Commission's rules, 47 C.F.R. §§ 0.91 and 0.291, it is HEREBY ORDERED that the Regional Holding Companies, GTE, Sprint Corporation, Anchorage Telephone Utility, and Puerto Rico Telephone Company shall complete the attached Universal Service Fund Data Request in the prescribed formats, and file their responses to the data request with the Commission by August 15, 1997.

FEDERAL COMMUNICATIONS COMMISSION

Kathleen B. Levitz
Deputy Chief, Common Carrier Bureau

1. See Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and Order, FCC 97-157 (rel. May 8, 1997) (Order), at para. 245.

2. The RHCs include Ameritech, BellSouth, Bell Atlantic, NYNEX, SBC Communications Inc., and U S WEST.

3. Order at para. 199.

4. Order at para. 223.

5. Order at para. 223.

6. Order at para. 200.

7. Order at para. 200.

8. Order at para. 201.

9. Order at para. 248.

10. Order at para. 206.

11. Order at para. 206.

12. See Order at paras. 241-45.