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 PUBLIC  NOTICE  Federal  Communications  Commission  445  12  th  St.,  S.  W.  Washington,  D.  C.  20554  News  Media  Information  202  /  418-  0500  Internet:  http://  www.  fcc.  gov  TTY:  1-  888-  835-  5322 
 DA  03-  3413 
 October  27,  2003 


 WIRELINE  COMPETITION  BUREAU  ANNOUNCES  POSTING  OF  REVISED  MODEL  USED  TO  DETERMINE  NON-  RURAL  HIGH-  COST  UNIVERSAL  SERVICE  SUPPORT 


 CC  Docket  No.  96-  45 
 In  this  Public  Notice,  the  Wireline  Competition  Bureau  (Bureau)  announces  the  posting  of  a  revised  version  of  the  Commission’s  cost  model  used  to  calculate  high-  cost  support  for  non-rural 
 carriers.  1  This  revised  version  of  the  cost  model  contains  technical  corrections  to  the  High  Cost  Proxy  Model  (HCPM)  made  since  it  last  was  posted  on  December  18,  2001.  2  The  revised 
 version  of  the  model  is  posted  on  the  Commission’s  website  at  http://  www.  fcc.  gov/  wcb/  tapd/  hcpm/,  and  the  technical  corrections  are  explained  in  detail  in  the 
 history.  doc  file  on  the  Commission’s  website.  In  addition,  the  Bureau  announces  technical  corrections  made  to  the  HAI  component  of  the  Commission’s  cost  model,  which  are  also 
 explained  in  detail  in  the  history.  doc  file  on  the  Commission’s  website.  3  The  revised  version  of  the  model  will  be  used  to  calculate  non-  rural  high-  cost  support  based  on  the  modified  non-  rural 
 high-  cost  support  methodology  adopted  by  the  Commission  in  the  Ninth  Universal  Service  Report  and  Order  remand  proceeding  beginning  January  1,  2004.  4 


 For  further  information  regarding  this  Public  Notice,  please  contact  Katie  King  or  Tom  Buckley  at  (202)  418-  7400. 
 1  See  Federal-  State  Joint  Board  on  Universal  Service,  CC  Docket  Nos.  96-  45,  97-  160,  Fifth  Report  and  Order,  13 
 FCC  Rcd  21,  323,  21,  329,  para.  13  (rel.  Oct.  28,  1998)  (Fifth  Report  and  Order).  See  also  Qwest  v.  FCC,  258  F.  3d  1191,  1206-  07  (10  th  Cir.  2001).  Because  the  Commission  expected  that  there  would  be  a  need  to  make  technical 


 improvements  to  the  model  on  an  ongoing  basis,  the  Commission  delegated  to  the  Bureau  “the  authority  to  make  changes  or  direct  that  changes  be  made  as  necessary  and  appropriate  to  ensure  that  the  model  platform  of  the  federal 
 mechanism  operates  as  described  in  this  Order.”  Fifth  Report  and  Order,  13  FCC  Rcd  at  21,  329,  para.  13. 
 2  The  HCPM,  which  consists  of  the  cluster  module,  cluster  interface  module,  and  feeder/  distribution  module,  is  the 
 component  of  the  model  platform  which  determines  customer  locations  and  designs  outside  plant  for  non-  rural  carriers.  See  Fifth  Report  and  Order,  Appendix  A,  13  FCC  Rcd  at  21,  369-  70,  21,  374-  75,  paras.  17-  20,  31-  35. 


 3  The  HAI  is  the  component  of  the  model  platform  used  to  calculate  expenses  related  to  corporate  overhead, 
 customer  operations,  and  general  support  facilities. 
 4  Federal-  State  Joint  Board  on  Universal  Service,  CC  Docket  No.  96-  45,  Order  on  Remand,  Further  Notice  of 
 Proposed  Rulemaking,  and  Memorandum  Opinion  and  Order,  FCC  03-  249,  n.  248  (rel.  Oct.  27,  2003). 
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