Goto Section: 64.902 | 64.904 | Table of Contents

FCC 64.903
Revised as of October 2, 2015
Goto Year:2014 | 2016
§ 64.903   Cost allocation manuals.

   (a)  Each incumbent local exchange carrier having annual revenues from
   regulated telecommunications operations that are equal to or above the
   indexed revenue threshold (as defined in § 32.9000 of this chapter) except
   mid-sized incumbent local exchange carriers is required to file a cost
   allocation manual describing how it separates regulated from nonregulated
   costs. The manual shall contain the following information regarding the
   carrier's allocation of costs between regulated and nonregulated activities:

   (1) A description of each of the carrier's nonregulated activities;

   (2) A list of all the activities to which the carrier now accords incidental
   accounting treatment and the justification therefor;

   (3) A chart showing all of the carrier's corporate affiliates;

   (4) A statement identifying each affiliate that engages in or will engage in
   transactions with the carrier and describing the nature, terms and frequency
   of each transaction;

   (5) A cost apportionment table showing, for each account containing costs
   incurred in providing regulated services, the cost pools with that account,
   the procedures used to place costs into each cost pool, and the method used
   to  apportion  the  costs  within each cost pool between regulated and
   nonregulated activities; and

   (6) A description of the time reporting procedures that the carrier uses,
   including  the  methods  or  studies  designed to measure and allocate
   non-productive time.

   (b) Each carrier shall ensure that the information contained in its cost
   allocation manual is accurate. Carriers must update their cost allocation
   manuals at least annually, except that changes to the cost apportionment
   table and to the description of time reporting procedures must be filed at
   the time of implementation. Annual cost allocation manual updates shall be
   filed on or before the last working day of each calendar year. Proposed
   changes in the description of time reporting procedures, the statement
   concerning affiliate transactions, and the cost apportionment table must be
   accompanied  by  a  statement quantifying the impact of each change on
   regulated  operations.  Changes  in  the description of time reporting
   procedures and the statement concerning affiliate transactions must be
   quantified in $100,000 increments at the account level. Changes in cost
   apportionment tables must be quantified in $100,000 increments at the cost
   pool level. The Chief, Wireline Competition Bureau may suspend any such
   changes for a period not to exceed 180 days, and may thereafter allow the
   change to become effective or prescribe a different procedure.

   (c) The Commission may by order require any other communications common
   carrier to file and maintain a cost allocation manual as provided in this
   section.

   [ 57 FR 4375 , Feb. 5, 1992, as amended at  59 FR 46358 , Sept. 8, 1994;  61 FR 50246 , Sept. 25, 1996;  62 FR 39779 , July 24, 1997;  65 FR 16335 , Mar. 28,
   2000;  67 FR 5702 , Feb. 6, 2002;  67 FR 13229 , Mar. 21, 2002]

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Goto Section: 64.902 | 64.904

Goto Year: 2014 | 2016
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