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TITLE 16ECONOMIC REGULATION
PART 2PUBLIC UTILITY COMMISSION OF TEXAS
CHAPTER 26SUBSTANTIVE RULES APPLICABLE TO TELECOMMUNICATIONS SERVICE PROVIDERS
SUBCHAPTER JCOSTS, RATES AND TARIFFS
RULE §26.215Long Run Incremental Cost Methodology for Dominant Certificated Telecommunications Utility (DCTU) Services

  (16) Switching and switch functions--The category of BNFs that provide for switched access between two or more network access channels or between network access channels and other BNFs, such as interoffice transport. This function is accomplished through the establishment of a temporary transmission path between network access channels in the same switching office; between a network access channel and the interoffice facilities that interconnect switching offices; or between a network access channel and other BNFs. This BNF category must cover the first point of switching for a customer. This BNF category consists of three subcategories of BNFs: interoffice switching; intraoffice switching; and switching features.

    (A) Interoffice switching--The subcategory of BNFs that provide for: switching between network access channels and switched transport facilities which are connected to different wire centers; and switching between network access channels and switched transport facilities when a tandem switch is used as the first point of interface to the DCTU switched network (e.g., connection of facilities from an interexchange carrier's point of network interface).

    (B) Intraoffice switching--The subcategory of BNFs that provide for switching between two or more network access channels within the same wire center.

(d) General principles.

  (1) Underlying the construction and application of this section is the recognition that the DCTU network consists of a finite number of BNFs that, when bundled in various combinations, can be used to deliver and market a vast variety of telecommunications services. Therefore, the determination of the cost of a service and the costs of a group of services under this section must involve the identification and costing of BNFs.

  (2) The LRIC studies that the DCTU is required to file under this section must assume that the company is operating in the long run and employs least cost technologies, as those terms are defined in subsection (c) of this section.

  (3) In order to obtain accurate LRIC study results, the DCTU must avoid the use of embedded cost data; expense items and capital costs must reflect long run incremental costs and the DCTU must justify any instance in which embedded cost data are used. Further, the fact that the costs determined under this section may differ from the company's embedded costs as determined during proceedings under the Public Utility Regulatory Act, Chapter 53, Subchapters C and D or E, should in no way cause the company to attribute any of this cost discrepancy to LRIC studies for BNFs, services, or groups of services.

  (4) When a BNF is used in the provision of two or more services then the volume insensitive cost of the BNF is a cost common to the services (as defined in subsection (c)(5)(C) of this section) that use the BNF.

  (5) When services share significant common costs (as defined in subsection (c)(5)(C) of this section), none of the common costs must be included in the LRIC studies for the services individually; instead, the company must identify which services share the common costs and attribute the cost recovery responsibility of these costs to the group of services collectively. Specifically, the individual LRIC studies for residential and business basic local exchange service, as these services are tariffed on the effective date of this section, must exclude any volume insensitive costs associated with the use of the network access channel basic level (as defined in subsection (e)(1)(A) of this section) and network access channel connection basic level (as defined in subsection (e)(2)(A) of this section).

  (6) When two or more groups of services share common costs, none of the common costs must be included in the LRIC studies for groups individually; instead, the company must identify which groups share the common costs and assign the common cost recovery responsibility of these costs to these groups collectively.

  (7) Nothing in this section is intended to either endorse or reject the DCTU's current rate and tariff structures.

(e) Identification of basic network functions. The DCTU must identify for each subcategory of BNFs the relevant and separately identifiable BNFs. The determination of the appropriate degree of aggregation of network components, functions, or activities into separately identifiable BNFs must be consistent with the principles described in subsection (d) of this section. Furthermore, in choosing BNFs, the DCTU must seek to minimize the number of network components, functions, or activities that are not included in BNFs. In addition to BNFs the company identifies under this subsection, the company must identify for each subcategory of BNFs the following prescribed BNFs:

  (1) Required BNFs for subcategory network access (NA) channel:

    (A) NA channel basic level: A transmission path which provides less than 1.544 MBPS digital capability. This includes 300 to 3,000 Hz analog voice service.

    (B) NA channel DS-1 level: A transmission path which has 1.544 MBPS digital capability.

    (C) NA channel DS-3 level: A transmission path which has 45 MBPS digital capability.

  (2) Required BNFs for subcategory NA Channel Connection:

    (A) NA channel connection basic level: An interface for channels which provide less than 1.544 MBPS digital capability. This includes the interface for 300 - 3,000 Hz analog voice service which is the basic interface for most voice grade services such as: basic local residential and local business service, PBX trunks, centrex-type access lines and voice grade dedicated transport service. In addition, this category includes the interface for four frequency bandwidths provided for audio channels such as: 200 to 3,500 Hz, 100 to 5,000 Hz, 50 to 8,000 Hz and 50 to 15,000 Hz. Also included in this BNF are the interfaces for low speed data transmission at speeds of 2.4, 4.8, 9.6, 56 KBPS and all other speeds below the T-1 rate of 1.544 MBPS. This interface is for narrowband service.

    (B) NA channel connection DS-1 level: An interface for 1.544 MBPS digital transmission channels. This interface connects high capacity wideband transmission channels which operate in a full duplex, time division (digital) multiplexing mode.

    (C) NA channel connection DS-3 level: An interface for 45 MBPS digital transmission channels. This interface connects broadband transmission channels which operate in full duplex, time division (digital) multiplexing mode.

  (3) Required BNFs for subcategory Channel Performance and Other Features and Functions:

    (A) Standard signaling and transmission level capabilities. Signaling and transmission level capabilities suitable for a wide variety of network services and applications associated with the BNF NA channel basic level, as defined in paragraph (1)(A) of this subsection.

    (B) Nonstandard signaling and transmission level capabilities and other features. Signaling and transmission level capabilities and other features and functions, other than those defined in subparagraph (A) of this paragraph, such as high voltage protection, multiplexing, and bridging. The company is encouraged to disaggregate this BNF into smaller BNFs that capture the variety of features and functions available to customers.

  (4) Required BNFs for subcategory interoffice switching: interoffice switching. The type of switching that provides for: switching between network access channels and switched transport facilities which are connected to different wire centers; and switching between network access channels and switched transport facilities when a tandem switch is used as the first point of interface to the switched network (e.g., connection of facilities from an interexchange carrier's point of network interface).

  (5) Required BNFs for subcategory intraoffice switching: intraoffice switching. Switching between two or more network access channels served from the same wire center.

  (6) Required BNFs for subcategory switching features:

    (A) Hunting arrangements. An optional function available to customers with multiple local exchange access lines in service.

    (B) Custom calling features. Various optional features which provide added calling convenience.

    (C) Central office automatic call distribution. The provision of call distribution as an integrated function of certain electronic central offices equipped to provide this capability. This function permits an equal distribution of a large volume of incoming calls to predesignated groups of answering positions, referred to as agent positions.

    (D) Central office based PBX-type functions. A business communications system furnished from stored program control central offices that provides the equivalent of customer premises PBX services through the use of central office hardware and software as well as through network access facilities from the central office to the customer premises. Included in this BNF must be only hardware specific to this type of service, processor or memory usage involved in special features for this type of service, and any software or software right to use fees associated with this Cont'd...

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