                                 CODE OF VIRGINIA

LOCAL EXCHANGE TELEPHONE SERVICE COMPETITION POLICY (§ 56-235.5:1)

A. The Commission, in resolving issues and cases concerning local exchange
telephone service under the federal Telecommunications Act of 1996 (P.L.
104-104), this title, or both, shall, consistent with federal and state laws,
consider it in the public interest to, as appropriate, (i) treat all providers
of local exchange telephone services in an equitable fashion and without undue
discrimination and, to the greatest extent possible, apply the same rules to all
providers of local exchange telephone services; (ii) promote competitive product
offerings, investments, and innovations from all providers of local exchange
telephone services in all areas of the Commonwealth; and (iii) reduce or
eliminate any requirement to price retail and wholesale products and services at
levels that do not permit providers of local exchange telephone services to
recover their costs of those products and services.

B. In order to treat all providers of local exchange telephone service more
equitably and without undue discrimination by ensuring that they are subject to
the same rules:

   1. Notwithstanding any other provision of law, the Commission shall (i) for
   incumbent local exchange carriers serving more than 15,000 access lines in its
   incumbent territory, establish a schedule that eliminates the carrier common
   line charge element of intrastate carrier switched access charges no later
   than July 1, 2013, provided that (a) any such carrier that directly receives
   no later than April 1, 2010, a Broadband Initiatives Program grant and loan
   for use in the Commonwealth from the Rural Utilities Service of the U.S.
   Department of Agriculture under the American Recovery and Reinvestment Act of
   2009 (P.L. 111-5) shall be considered under clause (ii), and (b) any such
   carrier that has not been the subject of a Commission proceeding to
   investigate its carrier common line charge may apply to the Commission for an
   opportunity to be heard as to why it is in the public interest and why it will
   not unreasonably prejudice or disadvantage telephone customers throughout the
   Commonwealth to extend the deadline for the elimination of its carrier common
   line charge to a date determined by the Commission, but in no case later than
   July 1, 2014; and (ii) for incumbent local exchange carriers with 15,000 or
   fewer access lines in its incumbent territory, determine, no later than July
   1, 2011, and after notice and an opportunity for a hearing, a schedule for the
   elimination of the carrier common line charge element of intrastate carrier
   switched access charges in a manner to be determined by the Commission.

   2. The Commission shall permit any incumbent local exchange carrier to
   increase its retail rates to recover a reasonable amount of carrier common
   line charge revenue lost due to the reductions required in subdivision 1.

HISTORY: 2004, c. 151; 2010, c. 748; 2013, c. 26.