{"data":{"id":"us/47-cfr-54.1308","jurisdiction":"us","citation":"47 CFR 54.1308","heading":"Study Area Total Unseparated Loop Cost.","body":"(a) For the purpose of calculating the expense adjustment, the study area total unseparated loop cost equals the sum of the following, however, subject to the limitations set forth in § 54.303:\n(1) Return component for net unseparated Exchange Line C\u0026WF subcategory 1.3 investment and Exchange Line CO Circuit Equipment Category 4.13 investment. This amount is calculated by deducting the accumulated depreciation and noncurrent deferred Federal income taxes attributable to C\u0026WF Subcategory 1.3 investment and Exchange Line Category 4.13 circuit investment reported pursuant to § 54.1305(b) from the gross investment in Exchange Line C\u0026WF Subcategory 1.3 and CO Category 4.13 reported pursuant to § 54.1305(a) to obtain the net unseparated C\u0026WF Subcategory 1.3 investment, and CO Category 4.13 investment. The net unseparated C\u0026WF Subcategory 1.3 investment and CO Category 4.13 investment is multiplied by the study area's authorized interstate rate of return.\n(2) Depreciation expense attributable to C\u0026WF Subcategory 1.3 investment, and CO Category 4.13 investment as reported in § 54.1305(c).\n(3) Maintenance expense attributable to C\u0026WF Subcategory 1.3 investment, and CO Category 4.13 investment as reported in § 54.1305(d).\n(4) Corporate Operations Expenses, Operating Taxes and the benefits and rent portions of operating expenses, as reported in § 54.1305(e) attributable to investment in C\u0026WF Category 1.3 and COE Category 4.13. This amount is calculated by multiplying the total amount of these expenses and taxes by the ratio of the unseparated gross exchange plant investment in C\u0026WF Category 1.3 and COE Category 4.13, as reported in § 54.1305(a), to the unseparated gross telecommunications plant investment, as reported in § 54.1305(f). Total Corporate Operations Expense for purposes of calculating high-cost loop support payments beginning January 1, 2012 shall be limited to the lesser of § 54.1308(a)(4)(i) or (ii).\n(i) The actual average monthly per-loop Corporate Operations Expense; or\n(ii) A monthly per-loop amount computed according to paragraphs (a)(4)(ii)(A) through (D) of this section. To the extent that some carriers' corporate operations expenses are disallowed pursuant to these limitations, the national average unseparated cost per loop shall be adjusted accordingly. For the purposes of this paragraph (a)(4)(ii), “total eligible lines” refers to working loops as defined by this subpart and consumer broadband-only loops, as defined in § 54.901(g).\n(A) For study areas with 6,000 or fewer total eligible lines, the monthly per-loop amount shall be $42.337 − (.00328 × the number of total eligible lines), or, $63,000/the number of total eligible lines, whichever is greater;\n(B) For study areas with more than 6,000 but fewer than 17,887 total eligible lines, the monthly per-loop amount shall be $3.007 + (117,990/the number of total eligible lines); and\n(C) For study areas with 17,887 or more total eligible lines, the monthly per-loop amount shall be $9.562.\n(D) Beginning January 1, 2013, the monthly per-loop amount computed according to paragraphs (a)(4)(ii)(A), (a)(4)(ii)(B), and (a)(4)(ii)(C) of this section shall be adjusted each year to reflect the annual percentage change in the United States Department of Commerce's Gross Domestic Product-Chained Price Index (GDP-CPI).\n(b) [Reserved]","path":["Title 47—Telecommunication","CHAPTER I—FEDERAL COMMUNICATIONS COMMISSION","SUBCHAPTER B—COMMON CARRIER SERVICES","PART 54—UNIVERSAL SERVICE","Subpart M—High Cost Loop Support for Rate-of-Return Carriers"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-47.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:26:28Z","sha256":"466a178aaa78040cde90cefc77aa257b9a4b75beaff3791c385ac68876b8e8e1","source_id":"us-cfr","stale":true,"prev":"us/47-cfr-54.1307","next":"us/47-cfr-54.1309"},"notice":"GroundRules: Original legal text. Not legal advice."}