47 CFR § 54.1301 - General.

---
identifier: "/us/cfr/t47/s54.1301"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "47 CFR § 54.1301 - General."
title_number: 47
title_name: "Telecommunication"
section_number: "54.1301"
section_name: "General."
chapter_name: "FEDERAL COMMUNICATIONS COMMISSION"
subchapter_number: "B"
subchapter_name: "COMMON CARRIER SERVICES"
part_number: "54"
part_name: "UNIVERSAL SERVICE"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "47 U.S.C. 151, 154(i), 155, 201, 205, 214, 219, 220, 229, 254, 303(r), 403, 1004, 1302, 1601-1609, and 1752, unless otherwise noted."
regulatory_source: "62 FR 32948, June 17, 1997, unless otherwise noted."
cfr_part: "54"
---


# 54.1301 General.

(a) This subpart addresses support for loop-related costs included in § 54.1308. The expense adjustment calculated pursuant to this subpart M shall be added to interstate expenses and deducted from state expenses after expenses and taxes have been apportioned pursuant to subpart D of part 36 of this chapter. Beginning January 1, 2012, this subpart will only apply to incumbent local exchange carriers that are rate-of-return carriers not affiliated, as “affiliated companies” are defined in § 32.9000 of this chapter, with price cap local exchange carriers. Rate-of-return carriers and price cap local exchange carriers are defined pursuant to § 54.5 and § 61.3(bb) of this chapter, respectively.

(b) The expense adjustment will be computed on the basis of data for a preceding calendar year.

[79 FR 39190, July 9, 2014, as amended at 89 FR 25163, Apr. 10, 2024]