UTILITIES CODE
CHAPTER 60. COMPETITIVE SAFEGUARDS
SUBCHAPTER A. GENERAL PROVISIONS
§ 60.001. FAIR COMPETITION. To the extent necessary to
ensure that competition in telecommunications is fair to each
participant and to accelerate the improvement of
telecommunications in this state, the commission shall ensure that
the rates and rules of an incumbent local exchange company:
(1) are not unreasonably preferential, prejudicial,
or discriminatory; and
(2) are applied equitably and consistently.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.002. EXCLUSIVE JURISDICTION;
ENFORCEMENT. (a) The commission has exclusive jurisdiction to
implement competitive safeguards.
(b) Section 58.025 does not prevent the commission from
enforcing this chapter.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.003. COMMISSION AUTHORITY. (a) The commission
may:
(1) establish procedures with respect to a policy
stated in this subchapter or Subchapters B-H; and
(2) resolve a dispute that arises under a policy
described by Subdivision (1).
(b) The commission shall adopt procedures for a proceeding
under Subchapters B and C. A procedure may:
(1) limit discovery; and
(2) for purposes of cross-examination align any party,
other than the office, with another party that has a similar
position.
(c) In adopting a procedure under this section and in
resolving a dispute, the commission shall consider the action's
effect on:
(1) consumers;
(2) competitors; and
(3) the incumbent local exchange company.
(d) The commission, by order or rule, may not implement a
requirement that is contrary to a federal law or rule.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.004. APPLICABILITY TO CERTAIN SMALLER INCUMBENT
LOCAL EXCHANGE COMPANIES; RULES. (a) Subchapters B, C, and H
may be applied to an incumbent local exchange company that serves
fewer than 31,000 access lines only on a bona fide request from a
certificated telecommunications utility.
(b) In applying the rules adopted under Subchapters B, C,
and H to a company described by Subsection (a), the commission may
modify the rules in the public interest.
(c) This section takes effect September 1, 1998.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.005. APPLICABILITY TO CERTAIN LARGER INCUMBENT
LOCAL EXCHANGE COMPANIES; RULES. (a) Subchapters B, D, and F
may be applied to an incumbent local exchange company that, as of
September 1, 1995, has 31,000 or more access lines in this state but
fewer than one million access lines in this state only on a bona
fide request from a holder of a certificate of operating authority
or a service provider certificate of operating authority.
(b) In applying the rules adopted under Subchapters B, D,
and F to a company described by Subsection (a), the commission may
modify the rules in the public interest.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.006. BULLETIN BOARD SYSTEMS UNAFFECTED. This
subtitle does not:
(1) require the commission to change the rate
treatment established by the commission in Docket No. 8387 for a
bulletin board system in a residence;
(2) regulate or tax a bulletin board system or
Internet service provider that provides only enhanced or
information services and that does not provide a telecommunications
service; or
(3) require a change in a rate charged to an entity
described by Subdivision (2) under a tariff in effect on September
1, 1995.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER B. UNBUNDLING
§ 60.021. MINIMUM UNBUNDLING REQUIREMENT. At a
minimum, an incumbent local exchange company shall unbundle its
network to the extent the Federal Communications Commission orders.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.022. COMMISSION UNBUNDLING ORDERS. (a) The
commission may adopt an order relating to the issue of unbundling of
local exchange company services in addition to the unbundling
required by Section 60.021.
(b) Before ordering further unbundling, the commission must
consider the public interest and competitive merits of further
unbundling.
(c) On the request of a party, the commission shall proceed
by evidentiary hearing. If a request for a hearing is not made, the
commission may proceed by rulemaking.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.023. ASSIGNMENT OF UNBUNDLED COMPONENT TO CATEGORY
OF SERVICE. The commission may assign an unbundled component to
the appropriate category of services under Chapter 58 according to
the purposes and intents of the categories.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER C. RESALE
§ 60.041. LOOP RESALE TARIFF. (a) An incumbent local
exchange company that on September 1, 1995, serves one million or
more access lines or that on or before September 1, 1995, elects
regulation under Chapter 58 shall file a usage sensitive loop
resale tariff.
(b) An incumbent local exchange company shall file a usage
sensitive loop resale tariff not later than the 60th day after the
date a certificate of operating authority or a service provider
certificate of operating authority is granted under Chapter 54 if
the company:
(1) serves fewer than one million access lines; and
(2) is not an electing company under Chapter 58.
(c) The commission shall conduct an appropriate proceeding
to determine the rates and terms of the resale tariff not later than
the 180th day after the date the tariff is filed.
(d) The commission may not approve a usage sensitive rate
unless the rate recovers:
(1) the total long run incremental cost of the loop on
an unseparated basis; and
(2) an appropriate contribution to joint and common
costs.
(e) Except as provided by Section 60.044, a person may not
purchase from the resale tariff unless the person is the holder of:
(1) a certificate of convenience and necessity;
(2) a certificate of operating authority; or
(3) a service provider certificate of operating
authority.
(f) In this section, "loop resale" means the purchase of the
local distribution channel or loop facility from the incumbent
local exchange company to resell to end user customers.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.042. PROHIBITED RESALE OR SHARING. (a) A
provider of telecommunications service may not impose a restriction
on the resale or sharing of a service:
(1) for which the provider is not a dominant provider;
or
(2) entitled to regulatory treatment as a nonbasic
service under Subchapter E, Chapter 58, if the provider is a company
electing regulation under Chapter 58.
(b) An incumbent local exchange company must comply with the
resale provisions of 47 U.S.C. Section 251(c)(4), as amended,
unless exempted under 47 U.S.C. Section 251(f), as amended.
(c) If a company electing under Chapter 58 offers basic or
nonbasic services regulated by the commission to its retail
customers as a promotional offering, the electing company shall
make those services available for resale by a certificated
telecommunications utility on terms that are no less favorable than
the terms on which the services are made available to retail
customers in accordance with this section. For a promotion with a
duration of 90 days or less, the electing company's basic or
nonbasic services shall be made available to the certificated
telecommunications utility at the electing company's promotional
rate, without an avoided-cost discount. For a promotion with a
duration of more than 90 days, the electing company's basic or
nonbasic services shall be made available to the certificated
telecommunications utility at a rate reflecting the avoided-cost
discount, if any, from the promotional rate.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997. Amended
by Acts 1999, 76th Leg., ch. 1212, § 51, eff. Sept. 1, 1999.
§ 60.043. RESALE OBLIGATION. A holder of a certificate
of operating authority or a service provider certificate of
operating authority shall permit a local exchange company to resell
the holder's loop facilities at the holder's regularly published
rates if the local exchange company:
(1) does not have loop facilities; and
(2) has a request for service.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.044. ELIMINATION OF RESALE
PROHIBITIONS. (a) Except as provided by Subsections (c) and (d),
the commission shall eliminate all resale prohibitions in the
tariffs of an electing company on the:
(1) completion of the commission's costing and pricing
rulemaking;
(2) completion of rate rebalancing of the incumbent
local exchange company rates under Subchapter F; and
(3) removal of all prohibitions on an incumbent local
exchange company's provision of interLATA services.
(b) Except as provided by Subsections (c) and (d), the
commission shall eliminate all resale prohibitions in the tariffs
of an electing company that has one million access lines or more on
removal of all prohibitions on the company's provision of interLATA
service.
(c) After the resale prohibitions are eliminated under this
section:
(1) the commission shall continue to prohibit the
resale of local exchange or directory assistance flat rate services
as a substitute for usage sensitive services; and
(2) residence service may not be resold to a business
customer.
(d) A service or function may be offered for resale only to
the same class of customer to which the incumbent local exchange
company sells the service if the commission finds that:
(1) as a result of the costing and pricing proceeding
the rate for the service or function will be less than the cost of
providing the service or function; and
(2) the difference in rate and cost will not be
recovered from the universal service fund.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.045. RESALE OR SHARING ARRANGEMENTS
UNAFFECTED. This subchapter does not change a resale or sharing
arrangement permitted in an incumbent local exchange company tariff
that:
(1) existed on September 1, 1995; or
(2) was filed on or before May 1, 1995, by an incumbent
local exchange company that serves more than five million access
lines in this state.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER D. IMPUTATION
§ 60.061. RULES. (a) The commission shall adopt rules
governing imputation of the price of a service.
(b) Imputation is a regulatory policy the commission shall
apply to prevent an incumbent local exchange company from selling a
service or function to another telecommunications utility at a
price that is higher than the rate the incumbent local exchange
company implicitly includes in services it provides to the
company's retail customers.
(c) The commission may require imputation only of the price
of a service that is:
(1) not generally available from a source other than
the incumbent local exchange company; and
(2) necessary for the competitor to provide a
competing service.
(d) The commission may require imputation only on a
service-by-service basis and may not require imputation on a
rate-element-by-element basis.
(e) For a service for which the commission may require
imputation under Subsection (c) and that is provided under a
customer specific contract, the commission:
(1) may require imputation only on a
service-by-service basis within the contract; and
(2) may not require imputation on a
rate-element-by-element basis.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.062. EXCEPTION FOR CAPPED PRICE. The commission
may not require imputation of the price to a local exchange
telephone service while the price is capped under Chapter 58 or 59.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.063. IMPUTATION FOR SWITCHED ACCESS. The
commission shall impute the price of switched access service to the
price of each service for which switched access service is a
component until switched access service is competitively
available.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.064. RECOVERY OF COST OF PROVIDING
SERVICE. (a) An incumbent local exchange company shall
demonstrate that the price it charges for retail service recovers
the cost of providing the service.
(b) For purposes of this section, the cost of providing the
service is the sum of:
(1) each specifically tariffed premium rate for each
noncompetitive service or service function, or each element of a
noncompetitive service or service function, or the functional
equivalent, that is used to provide the service;
(2) the total service long run incremental cost of the
competitive services or service functions that are used;
(3) each cost, not reflected in Subdivision (1) or
(2), that is specifically associated with providing the service or
group of services; and
(4) each cost or surcharge associated with an explicit
subsidy applied to all providers of the service to promote
universal service.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.065. WAIVERS. If the commission determines that a
waiver is in the public interest, the commission may waive an
imputation requirement for a public interest service such as:
(1) 9-1-1 service; or
(2) dual party relay service.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER E. TELECOMMUNICATIONS NUMBER PORTABILITY
§ 60.081. DEFINITION. In this subchapter,
"telecommunications number portability" means the ability of a
telecommunications services user who is changing from one
telecommunications service provider to another provider to retain a
telephone number, to the extent technically feasible, without
impairing the quality, reliability, or convenience of service.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.082. PORTABILITY GUIDELINES. (a) Because a
uniform national number plan is valuable and necessary to this
state, the commission by rule shall adopt guidelines governing
telecommunications number portability and the assignment of
telephone numbers in a competitively neutral manner.
(b) The rules may not be inconsistent with the rules and
regulations of the Federal Communications Commission regarding
telecommunications number portability.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.083. INTERIM RETENTION OF CONSUMER NUMBERS. As an
interim measure, the commission shall adopt reasonable mechanisms,
including, at minimum, the use of call forwarding and direct inward
dialing, to allow consumers to retain their telephone numbers.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.084. RATES FOR INTERIM PORTABILITY
MEASURES. (a) An incumbent local exchange company with one
million or more access lines shall file tariffs, and the commission
shall determine reasonable rates to be charged by the company for:
(1) call forwarding;
(2) direct inward dialing; and
(3) any other mechanism the commission determines
should be used as an interim telecommunications number portability
measure by a new entrant.
(b) An incumbent local exchange company with fewer than one
million access lines that serves an area in which a certificate of
operating authority or a service provider certificate of operating
authority has been granted shall, not later than the 60th day after
the date of a bona fide request, file tariffs in accordance with
Subsection (a).
(c) Not later than the 60th day after the date a company
files tariffs under Subsection (b), the commission shall determine
reasonable rates in accordance with Subsection (a).
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER F. PRICING
§ 60.101. PRICING RULE. (a) The commission shall
adopt a pricing rule.
(b) In adopting the pricing rule, the commission shall:
(1) ensure that each price for a monopoly service
remains affordable;
(2) ensure that each price for competitive service is
not:
(A) unreasonably preferential, prejudicial, or
discriminatory;
(B) directly or indirectly subsidized by a
noncompetitive service; or
(C) predatory or anticompetitive; and
(3) require that each service recover the appropriate
costs, including joint and common costs, of each facility and
function used to provide the service.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.102. ADOPTION OF COST STUDIES BY CERTAIN
COMPANIES. The commission shall allow an incumbent local exchange
company that is not a Tier 1 local exchange company on September 1,
1995, to adopt, at that company's option, the cost studies approved
by the commission for a Tier 1 local exchange company.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER G. INTERCONNECTION
§ 60.121. DEFINITION. In this subchapter,
"interconnection" means, for calls that originate and terminate in
this state, the termination of local intraexchange traffic of
another local exchange company or holder of a service provider
certificate of operating authority within the local calling area of
the terminating local exchange company or certificate holder.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.122. EXCLUSIVE JURISDICTION. The commission has
exclusive jurisdiction to determine rates and terms for
interconnection for a holder of a certificate of convenience and
necessity, a certificate of operating authority, or a service
provider certificate of operating authority.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.123. INAPPLICABILITY OF SUBCHAPTER. This
subchapter does not apply to a rate for the existing termination of
cellular or interexchange traffic.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.124. INTEROPERABLE NETWORKS REQUIRED. (a) The
commission shall require each telecommunications provider to
maintain interoperable networks.
(b) The commission may:
(1) adopt rules, including generic rules that are
responsive to changes in federal law or a development in the local
exchange market; and
(2) set policies governing interconnection
arrangements.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.125. DETERMINATION OF INTERCONNECTION
RATES. (a) Telecommunications providers shall negotiate network
interconnectivity, charges, and terms.
(b) If interconnectivity, charges, and terms are
successfully negotiated, the commission shall approve the
interconnection rates.
(c) If telecommunications providers do not enter into a
mutually agreed compensation rate under this section, each provider
shall reciprocally terminate the other provider's traffic at no
charge for the first nine months after the date the first call is
terminated between the providers.
(d) During the nine-month period prescribed by Subsection
(c), the commission shall complete a proceeding to establish
reciprocal interconnection rates and terms. The commission shall
establish reciprocal interconnection rates and terms based solely
on the commission proceeding.
(e) In establishing the initial interconnection rate, the
commission may not require cost studies from the new entrant.
(f) On or after the third anniversary of the date the first
call is terminated between the providers, the commission, on
receipt of a complaint, may require cost studies by a new entrant to
establish interconnection rates.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.126. INTERCONNECTIVITY NEGOTIATIONS; DISPUTE
RESOLUTION. The commission may resolve a dispute filed by a party
to a negotiation under Section 60.125(a).
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.127. ADOPTION OF APPROVED INTERCONNECTION
RATES. (a) An incumbent local exchange company may adopt the
interconnection rates the commission approves for a larger
incumbent local exchange company without additional cost
justification.
(b) If an incumbent local exchange company does not adopt
the interconnection rates of a larger company or negotiates under
Section 60.125(a), the company is governed by Sections
60.125(c)-(f).
(c) If the incumbent local exchange company adopts the
interconnection rates of another incumbent local exchange company,
the new entrant may adopt those rates as the new entrant's
interconnection rates.
(d) If the incumbent local exchange company elects to file
its own tariff, the new entrant must also file its own
interconnection tariff.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.128. USE OF RATES RESTRICTED. The commission may
not use interconnection rates under this subchapter as a basis to
alter interconnection rates for other services.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER H. EXPANDED INTERCONNECTION
§ 60.141. EXPANDED INTERCONNECTION RULES. The
commission shall adopt rules for expanded interconnection that:
(1) are consistent with the rules and regulations of
the Federal Communications Commission relating to expanded
interconnection;
(2) treat intrastate private line services as special
access service; and
(3) provide that if an incumbent local exchange
company is required to provide expanded interconnection to another
local exchange company, the second local exchange company shall in
a similar manner provide expanded interconnection to the first
company.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER I. LOCAL EXCHANGE COMPANY REQUIREMENTS
§ 60.161. INCUMBENT LOCAL EXCHANGE COMPANY
REQUIREMENTS. An incumbent local exchange company may not
unreasonably:
(1) discriminate against another provider by refusing
access to the local exchange;
(2) refuse or delay an interconnection to another
provider;
(3) degrade the quality of access the company provides
to another provider;
(4) impair the speed, quality, or efficiency of a line
used by another provider;
(5) fail to fully disclose in a timely manner on
request all available information necessary to design equipment
that will meet the specifications of the local exchange network; or
(6) refuse or delay access by a person to another
provider.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.162. EXPANDED INTERCONNECTION. This subchapter
does not require an incumbent local exchange company to provide
expanded interconnection as that term is defined by the Federal
Communications Commission.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.163. INFRASTRUCTURE SHARING. (a) The commission
shall adopt rules that require a local exchange company to share
public switched network infrastructure and technology with a
requesting local exchange company that lacks economies of scale or
scope, to enable the requesting company to provide
telecommunications services in each geographic area for which the
requesting company is designated as the sole carrier of last
resort.
(b) The rules governing the sharing:
(1) may not require a local exchange company to make a
decision that is uneconomic or adverse to the public;
(2) shall permit, but may not require, joint ownership
and operation of public switched network infrastructure and
services by or among the local exchange companies that share
infrastructure; and
(3) shall establish conditions that promote
cooperation between local exchange companies.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 60.164. PERMISSIBLE JOINT MARKETING. Except as
prescribed in Chapters 61, 62, and 63, the commission may not adopt
any rule or order that would prohibit a local exchange company from
jointly marketing or selling its products and services with the
products and services of any of its affiliates in any manner
permitted by federal law or applicable rules or orders of the
Federal Communications Commission.
Added by Acts 1999, 76th Leg., ch. 1212, § 52, eff. Sept. 1,
1999.
§ 60.165. AFFILIATE RULE. Except as prescribed in
Chapters 61, 62, and 63, the commission may not adopt any rule or
order that would prescribe for any local exchange company any
affiliate rule, including any accounting rule, any cost allocation
rule, or any structural separation rule, that is more burdensome
than federal law or applicable rules or orders of the Federal
Communications Commission. Notwithstanding any other provision in
this title, the commission may not attribute or impute to a local
exchange company a price discount offered by an affiliate of the
local exchange company to the affiliate's customers. This section
does not limit the authority of the commission to consider a
complaint brought under Subchapter A, Chapter 52, Section 53.003,
or this chapter.
Added by Acts 1999, 76th Leg., ch. 1212, § 52, eff. Sept. 1,
1999.
