Goto Section: 64.804 | 64.902 | Table of Contents
Revised as of February 22, 2021
Goto Year:2020 |
§ 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
(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,
Goto Section: 64.804 | 64.902
Goto Year: 2020 |
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