§252 Procedures for negotiation, arbitration, and approval of agreements

Summary

When a local phone company is asked to connect with or sell parts of its network, it can make a binding deal with the requesting carrier. The deal must list the charges for each item and be filed with the state regulator. Either side can ask the state to help mediate at any time. If, between the 135th and 160th day after the request there are still open issues, either party may ask the state regulator to decide those issues. The petition must include all relevant papers and be given to the other party the same day the state gets it. The other party can answer within 25 days. The state will only rule on the issues in the petition and the response, may ask for more information, and can decide based on the best information if a party refuses to cooperate. The state must finish resolving the issues and set any required terms no later than 9 months after the carrier got the original request. If a party refuses to keep negotiating or to work with the state, the state can treat that as bad faith. When the state decides, it must follow the law’s rules, set rates under the cost rules below, and give a plan for putting the deal into effect. Rates must be based on the cost to provide the service (not a rate-of-return method), be fair to all carriers, and may allow a reasonable profit. Rules about compensating carriers for call transport and termination must let each carrier recover its costs in a fair way and use a reasonable estimate of added costs, though offset arrangements like bill-and-keep are allowed. Wholesale rates should be based on retail prices minus marketing, billing, collection, and other costs the carrier avoids. Any negotiated or decided agreement must be sent to the state regulator, which must approve or reject it with written reasons. The state may reject a negotiated deal only if it discriminates against other carriers or is not in the public interest, and may reject an arbitration decision only if it does not meet the law or the cost rules. If the state does not act within 90 days for negotiated agreements or 30 days for arbitration decisions, the agreement is treated as approved. If the state fails to carry out its duties, the federal agency will step in within 90 days after notice. The state must make approved agreements public within 10 days and may charge a reasonable fee. A Bell operating company may file a standard statement of terms; the state must review it within 60 days or allow it to take effect, but the company still must negotiate individual agreements. A local exchange carrier must offer any approved interconnection, service, or network element to other requesting carriers on the same terms. incumbent local exchange carrier — the existing local phone company in the area.