(ii) Inventions made during the FIVE YEAR PERIOD, solely or jointly with anyone, and in the course of their employment by employees of any such company who are employed to do research, development or other inventive work, and

(iii) Any other inventions made prior to the termination of the FIVE YEAR PERIOD, with respect to which and to the extent to which any such company shall at any time during the FIVE YEAR PERIOD have the right to grant the licenses and rights which are herein granted by WESTERN;

provided, however, that said patents do not include those issued for inventions made by employees of any SUBSIDIARY of WESTERN or AT&T exclusively engaged in the performance of contracts with the Energy Research and Development Administration of the United States.

§ 68.506 Configurations used to connect multi-line communications systems such as Private Branch Exchange (PBX) and key telephone systems. Any of the jack configurations specified in § 68.502, used singly, in multiple combinations, or combined in common mechanical arrays, may be used as the interface between multiline equipment such as PBX and key telephone systems, and the telephone network. The telephone company and installation supervisor may mutually agree to use electrical connections alternative to those specified in § 68.502. [43 FR 16501, Apr. 19, 1978]

69.408 Relief and pensions.

69.409 License contract expenses.

69.410 Other expenses.

Subpart F-Segregation of Common Line Element Revenue Requirement

69.501

General.

69.502 Base factor allocation.

Subpart G-Exchange Carrier Association

69.601

Exchange carrier association.

69.602 Board of directors.

69.603

Association functions.

69.604 Billing and collection of access charges.

69.605 Distribution of Carrier Common Line revenues.

69.606 Computation of average schedule company payments.

69.607 Disbursement of Carrier Common Line residue.

69.608 Carrier Common Line hypothetical

net balance.

69.609 End User Common Line hypothetical net balances.

For purposes of this part:

(a) “Access Service" includes services and facilities provided for the origination or termination of any interstate or foreign telecommunication;

(b) “Annual revenue requirement" means the sum of the return component and the expense component;

(c) "Association" means the telephone company association described in Subpart G of this part;

(d) "Big 4 Wage Factor" means that ratio of combined wage expense except building maintenance wage expense attributable to general office space in the following expense categories: (1) Maintenance;

(2) Traffic;

(3) Commercial; and

(4) Revenue Accounting;

(e) "Buildings" includes investment that is described as building investment in the Separations Manual;

(f) "Carrier Outside Plant" or "Carrier OSP” means all outside plant that is not Customer OSP;

(g) "Central Office Equipment" or "COE" includes all equipment or facilities that are described as Central

Office Equipment in the Separations Manual;

(h) "Commerical Expenses" includes all expenses that are described as Commercial Expenses in the Separations Manual, except for any expense incurred in computing, billing or collecting access charges which shall be deemed to be Revenue Accounting expense;

(i) "Current taxes" includes taxes other than property taxes that are actually accrued during the relevant period less credits attributable to past deferrals and does not include hypothetical taxes that are allowable expenses for ratemaking purposes or taxes assessed upon end users;

(j) "Customer Outside Plant" or "Customer OSP" means all lines or trunks on the customer side of a Class 5 or end office switch, including lines or trunks that do not terminate in such a switch, except lines or trunks that connect an interexchange carrier;

(k) A "coinless pay telephone" is a public telephone provided by a telephone company through which an end user may originate interstate or foreign telecommunications for which he pays by credit card, collect, or third number billing procedures;

(1) "Direct Expense" means expenses that are attributable to a particular category of tangible investment described in Subpart D of this part and includes:

(1) Maintenance;

(2) Depreciation and amortization; (3) Rental payments for buildings, facilities or equipment; and

(4) Property taxes;

(m) "End user" means any customer of an interstate or foreign telecommunications service that is not a carrier, except that a carrier shall be deemed to be an "end user" to the extent that such carrier uses a telecommunications service for administrative purposes, without making such service available to others, directly or indirectly;

(n) "Entry switch" means the telephone company switch in which a dedicated transport line or trunk terminates;

(o) "Expense component" means the total expenses and income charges for

an annual period that are attributable to a particular element or category;

(p) "Expenses" include allowable expenses in the 600 series of the Uniform System of Accounts apportioned to interstate or international services pursuant to the Separations Manual and allowable income charges apportioned to interstate and international services pursuant to the Separations Manual;

(q) "General Office Expenses" includes Executive (Account 661) expense, Treasury (Account 663) expense, Law (Account 664) expense, Other General (Account 665) expense and the portion of Accounting (Account 662) expense that is not Revenue Accounting expense;

(r) "Interexchange" or the "interexchange category" includes services or facilities provided as an integral part of interstate or foreign telecommunications that is not described as "access service" for purposes of this part;

an

(s) "License contract" means agreement to reimburse an entity that is jointly owned by telephone companies or companies that own telephone companies or an entity that directly or indirectly controls or is controlled by, or is under direct or indirect control with, a telephone company, for services, facilities, patents or other knowhow;

(t) "Line" or "trunk" includes, but is not limited to, transmission media such as radio, satellite, wire, cable and fiber optic cable means of transmission;

(u) "Net investment" means allowable original cost investment in Accounts 100.1-100.4 and 122 that has been apportioned to interstate and foreign services pursuant to the Separations Manual from which depreciation, amortization and other reserves attributable to such investment that has been apportioned to interstate and foreign services pursuant to the Separations Manual have been subtracted and to which working capital that is attributable to interstate and foreign services has been added;

(v) "Origination" of a service that is switched in a Class 4 switch or an interexchange switch that performs an equivalent function ends when the transmission enters such switch and

"termination" of such a service begins when the transmission leaves such a switch, except that:

(1) Switching in a Class 4 switch or transmission between Class 4 switches that is not deemed to be interexchange for purposes of the Modified Final Judgment entered August 24, 1982, in United States v. Western Electric Co., D.C. Civil Action No. 82-0192, will be "origination" or "termination” for purposes of this part, and;

(2) “Origination” and “termination” does not include the use of any part of a line, trunk or switch that is not owned or leased by a telephone company;

(w) "Origination" of any service other than a service that is switched in a Class 4 switch or a switch that performs an equivalent function ends and "termination" of any such service begins at a point of demarcation that corresponds with the point of demarcation that is used for a service that is switched in a Class 4 switch or a switch that performs an equivalent function;

(x) "Outside Plant" or "OSP" includes all equipment or facilities that are described as outside plant in the Separations Manual;

(y) "Private line" means a line that is used exclusively for an interexchange service other than MTS or WATS, including a line that is used at the closed end of an FX or CCSA service or any service that is substantially equivalent to a CCSA service;

Ex

(z) "Return component” means net investment attributable to a particular element or category multiplied by the authorized annual rate of return; (aa) "Revenue Accounting penses" includes all expenses that are described as Revenue Accounting Expenses in the Separations Manual and expenses associated with the preparation of access charge tariffs and the distribution of access charge revenues;

(bb) "Station equipment" includes all equipment or facilities that are described as station equipment in the Separations Manual except station equipment that is used by telephone companies in their own operations;

(cc) "Telephone company" means a carrier that provides telephone exchange service as defined in Section

3(r) of the Communications Act of 1934;

(dd) "Traffic Expenses" includes all expenses that are described as traffic expenses in the Separations Manual;

(ee) "Unit of capacity” means the capability to transmit one conversation; and

(ff) "WATS access line" means a line or trunk that is used exclusively for WATS service.

(gg) "Access minutes" or "access minutes of use" is that usage of exchange facilities in interstate or foreign service for the purpose of calculating chargeable usage. On the originating end of an interstate or foreign call, usage is to be measured from the time the originating end user's call is delivered by the telephone company and acknowledged as received by the interexchange carrier's facilities connected with the originating exchange. On the terminating end of an interstate or foreign call, usage is to be measured from the time the call is received by the end user in the terminating exchange. Timing of usage at both the originating and terminating end of an interstate or foreign call shall terminate when the calling or called party disconnects, whichever event is recognized first in the originating and terminating end exchanges, as applicable.

[48 FR 10358, Mar. 11, 1983, as amended at 48 FR 43017, Sept. 21, 1983]

§ 69.3 Filing of access service tariffs.

(a) A tariff for access service shall be filed with this Commission for an annual period. Such tariffs shall be filed so as to provide a minimum of 90 days notice with a scheduled effective date of June 1.

(b) The requirement imposed by paragraph (a) of this Section shall not preclude the filing of revisions to those annual tariffs that will become effective on dates other than June 1.

(c) Any access service tariff filing, the filing of any petitions for rejection, investigation or suspension and the filing of any responses to such petitions shall comply with the applicable rules of this Commission relating to tariff filings.

(d) The association shall file a tariff as agent for all telephone companies

that participate in an association tariff.

(e) A telephone company or group of telephone companies may file a tariff that is not an association tariff. Such a tariff may cross-reference the association tariff for some access elements and include separately computed charges of such company or companies for other elements. Any such tariff must comply with the requirements hereinafter provided:

(1) Such a tariff must cross-reference association charges for the Carrier Common Line element if such company or companies participate in the distribution of revenues from such element;

(2) Such a tariff that cross-references an association charge for any end user access element must crossreference association charges for all end user access elements;

(3) Such a tariff that cross-references an association charge for any carrier's carrier access element other than the Carrier Common Line element or the Billing and Collection element must cross-reference association charges for all carriers carrier access charges other than the Carrier Common Line element and the Billing and Collection element;

(4) Any charge in such a tariff other than a Billing and Collection charge that is not an association charge must be computed to reflect the combined investment and expenses of all companies that participate in such a charge;

(5) A telephone company or companies that elect to file such a tariff for 1984 access charges shall notify AT&T on or before the 40th day after the release of the Commission order adopting this part;

(6) A telephone company or companies that elect to file such a tariff for any annual period subsequent to May 31, 1985 shall notify the association not later than November 30 of the preceding year if such company or companies did not file such a tariff in such preceding period or cross-referenced association charges in such preceding period that will not be cross-referenced in the new tariff.

(7) Such a tariff shall not contain charges for any access elements that disaggregated or deaveraged

are

within a study area that is used for purposes of jurisdictional separations;

(8) To enable the association to prepare an access tariff for each annual period subsequent to May 31, 1985, each telephone company shall notify the association no later than November 30 of the preceding year of the projected average number of private line terminations and any other lines that would be subject to the special access surcharge.

(47 U.S.C. 154 (i) and (j), 201, 202, 203, 205, 218 and 403 and 5 U.S.C. 553)

[48 FR 10358, Mar. 11, 1983, as amended at 48 FR 43017, Sept. 21, 1983; 49 FR 7829, Mar. 2, 1984]

sessed upon an interexchange carrier to the extent that it resells services for which these charges have already been assessed (e.g., MTS, WATS and the MTS/WATS-type services of other common carriers), or that it resells private line service to offer services which are not MTS/WATS-type services.

(c) Special access surcharges shall be assessed upon users of exchange facilities which interconnect these facilities with means of interstate or foreign telecommunications to the extent that carrier's carrier charges are not assessed upon such interconnected usage. As an interim measure pending the development of techniques accurately to measure such interconnected use and to assess such charges on a reasonable and nondiscriminatory

basis, telephone companies shall assess special access surcharges upon the closed ends of private line services pursuant to the provisions of § 69.115 of this part.

(47 U.S.C. 154 (i) and (j), 201, 202, 203, 205, 218 and 403 and 5 U.S.C. 553)

[48 FR 43017, Sept. 21, 1983, as amended at 49 FR 7829, Mar. 2, 1984]

Subpart B-Computation of Charges § 69.101 General.

Except as provided in Subpart C of this part, charges for each access element shall be computed and assessed as provided in this subpart.

§ 69.103 Limited Pay Telephone (pay telephones and coinless pay telephones which can access the services of only one interexchange carrier).

(a) A charge that is expressed in dollars and cents per line per month shall be assessed upon an interexchange carrier for each line terminating in a pay telephone or coinless pay telephone which can be used to originate any of its interstate or foreign telecommunications services, but not such services of other interexchange carri

ers.

(b) The per line charge shall be computed by dividing one-twelfth of the projected annual revenue requirement for the Limited Pay Telephone element by the projected average number