Title 47 › CHAPTER 5 — WIRE OR RADIO COMMUNICATION › SUBCHAPTER II — COMMON CARRIERS › Part II — Development of Competitive Markets › § 252
Requires phone companies to try to make written deals for connecting their networks, listing all charges, and then send those deals to the state telecom regulator. The companies can negotiate freely and ask the state regulator to help mediate at any time. If they still have disagreements, either side can ask the state regulator to arbitrate between the 135th and 160th day after the negotiation request. The party asking for arbitration must give the regulator all papers about the disputed issues and give copies to the other party the same day. The other party has 25 days to respond. The regulator will only decide the issues raised, may ask for more information, and must finish resolving the unresolved issues within 9 months after the original request. Refusing to keep negotiating or to work with the regulator counts as failing to negotiate in good faith. When the state regulator decides, it must follow the federal rules in section 251, set rates based on the cost of providing the service (not a rate‑of‑return method), be nondiscriminatory, and may allow a reasonable profit. Rules for call transport and termination must let each carrier recover the costs of handling calls from the other carrier and use a reasonable estimate of those costs, though offsetting arrangements like bill‑and‑keep are allowed. Wholesale prices are tied to retail prices minus costs that will be avoided. Every negotiated or arbitrated agreement must be filed with the state regulator, which must approve or reject it in writing. The regulator can reject a negotiated deal only for discrimination against non‑parties or if it harms the public interest, or reject an arbitrated deal if it fails to meet section 251 or the pricing rules. If the regulator does not act within 90 days for negotiated deals or 30 days for arbitrated deals, the agreement is treated as approved. If a state regulator fails to act, the FCC will take over within 90 days after notice. Approved agreements must be made public within 10 days. Any carrier party to an approved deal must offer the same terms to any other carrier that asks. The term “incumbent local exchange carrier” is defined in 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
Sep 22, 2026
Release point: 119-110