Interconnecting LECs shall establish reciprocal compensation arrangements for the transport and termination of local calls pursuant to 47 U.S.C. Section 252(d)(2), 47 C.F.R. Section 51.701-717 and the requirements of this section. All local calls, including calls used for voice communications, data communications and connection to the internet or an internet services provider, shall be subject to the reciprocal compensation arrangements.

1. A. Interconnecting LECs may by mutual agreement establish bill-and-keep arrangements to satisfy their reciprocal compensation obligations or may negotiate explicit rates for reciprocal compensation in accordance with 47 U.S.C. Section 252 and this rule.
2. B. A LEC that has entered into a bill-and-keep arrangement may, ninety (90) days following the effective date of such agreement, petition the commission to initiate negotiation of explicit reciprocal compensation charges. The commission shall grant such petition if the petitioning party demonstrates that the amount of local traffic handed off from one network to the other, measured on a monthly basis, is out of balance in either direction by more than ten percent (10%) for three consecutive months.

3. C. If two interconnecting LECs are unable to determine mutually agreeable rates for reciprocal compensation, the commission shall establish explicit reciprocal compensation rates.

   (1) The commission shall establish a reciprocal compensation rate structure that is consistent with the costs incurred by LECs for the transport and termination of local calls.

   (2) If only one of the interconnecting LECs is an incumbent, then unless paragraph 3 of this subsection applies, the commission shall establish symmetrical reciprocal compensation rates (i.e., the same rates will apply to the transport and termination of traffic originating with either LEC), based on the ILEC’s forward-looking economic costs, calculated as prescribed in 17.11.18.15 NMAC.

   (3) If only one of the interconnecting LECs is an incumbent, the other LEC may file a cost study with the commission to demonstrate that its forward-looking economic costs for transport and termination of local calls are higher than those of the interconnecting ILEC. If the commission finds that costs for transport and termination of local calls are disparate, the commission shall establish asymmetric rates for reciprocal compensation, based on the forward-looking economic costs for transport and termination of local calls incurred by each LEC.

   (4) If both interconnecting LECs are incumbents, or neither is an incumbent, the commission shall establish symmetrical reciprocal compensation rates based on the larger LEC’s forward-looking economic costs, calculated as prescribed in 17.11.18.15 NMAC.

[17.11.18.9 NMAC - N, 1-1-01; A, 08-15-06]