Title 47 › Chapter 5— WIRE OR RADIO COMMUNICATION › Subchapter II— COMMON CARRIERS › Part II— Development of Competitive Markets › § 252
Requires incumbent phone companies to negotiate and sign deals with other telecom carriers for interconnection, services, or network parts, and to send the finished deal to the state regulator for approval. The deal must list itemized charges. Either side can ask the state regulator to join negotiations and help mediate at any time. If negotiations stall, either party can ask the state regulator to arbitrate between the 135th and 160th day after a negotiation request. The petitioner must give the regulator all papers about the issues and immediately give copies to the other party. The other party can respond within 25 days. The state regulator only decides the issues in the filings, can ask for more information, and must finish resolving disputes and set conditions within 9 months of the original request. Refusing to cooperate is treated as failing to negotiate in good faith. When arbitrating, the regulator must follow the rules in section 251, set rates based on cost (no rate-of-return), make rates nondiscriminatory, may allow a reasonable profit, and give a schedule for when terms must be put in place. Rules about mutual cost recovery for call transport and termination must use reasonable estimates of additional costs but allow offset or “bill-and-keep” arrangements; regulators are not required to run detailed cost-rate proceedings. Wholesale rates are set from retail rates after removing avoidable costs. The regulator must approve or reject any negotiated or arbitrated agreement and must write reasons for any rejection. A negotiated agreement can be rejected only if it discriminates against others or harms the public interest. An arbitrated agreement can be rejected only if it fails to meet section 251 or the cost standards described above. If the state regulator does not act within 90 days for negotiated deals or 30 days for arbitrated deals, the deal is approved by default. If the state fails to act at all, the Federal Communications Commission can step in within 90 days. Approved agreements and standard statements must be made public within 10 days, and carriers must offer approved terms to any other requesting carrier. The term “incumbent local exchange carrier” is defined under section 251(h).
Full Legal Text
Telegraphs, Telephones, and Radiotelegraphs — Source: USLM XML via OLRC
Legislative History
Reference
Citation
47 U.S.C. § 252
Title 47 — Telegraphs, Telephones, and Radiotelegraphs
Last Updated
Apr 5, 2026
Release point: 119-73not60