7 Cfr 1751

Rural Utilities Service, USDA

§ 1751.100

PART
1751—TELECOMMUNICATIONS SYSTEM PLANNING
AND DESIGN CRITERIA, AND
PROCEDURES
Subpart A [Reserved]
1751.1–1751.99

[Reserved]

Subpart B—State Telecommunications
Modernization Plan
1751.100 Definitions.
1751.101 General.
1751.102 Modernization Plan Developer; eligibility.
1751.103 Loan and loan advance requirements.
1751.104 Obtaining RUS approval of a proposed Modernization Plan.
1751.105 Amending a Modernization Plan.
1751.106 Modernization Plan; requirements.
AUTHORITY: 7 U.S.C. 901 et seq., 1921 et seq.;
Pub. L. 103–354, 108 Stat. 3178 (7 U.S.C. 6941 et
seq.).
SOURCE: 60 FR 8174, Feb. 13, 1995, unless
otherwise noted.

Subpart A [Reserved]
§§ 1751.1–1751.99

[Reserved]

Subpart B—State Telecommunications Modernization Plan
§ 1751.100 Definitions.
As used in this subpart:
Bit rate. The rate of transmission of
telecommunications signals or intelligence in binary (two state) form in
bits per unit time, e.g., Mb/s (megabits
per second), kb/s (kilobits per second),
etc.
Borrower. Any organization that has
received an RUS loan designation number and which has an outstanding telephone loan made by RUS or the Rural
Telephone Bank, or guaranteed by
RUS, or which has a completed loan
application with RUS.
Emerging technologies. New or not
fully developed methods of telecommunications.
Modernization
Plan
(State
Telecommunications Modernization Plan). A
State plan, which has been approved by
RUS, for improving the telecommunications
network
of
those
Telecommunications Providers covered by
the plan. A Modernization Plan must

conform to the provisions of this subpart.
New facilities. Facilities which are
wholly or partially constructed or reconstructed after a short- or mediumterm requirements start date, as appropriate. This does not include connections or capacity extensions within the
wired capacity of existing plant such as
adding line cards to existing equipment.
Plan Developer. The entity creating
the Modernization Plan for the State,
which may be the State PUC, the State
legislature, or a numeric majority of
the RUS Borrowers within the State.
When this part refers to the PUC as the
Plan Developer, this includes the State
legislature.
PUC (Public Utilities Commission). The
public utilities commission, public
service commission or other State body
with such jurisdiction over rates, service areas or other aspects of the services and operation of providers of telecommunications services as vested in
the commission or other body authority, to the extent provided by the
State, to guide development of telecommunications services in the State.
When this part refers to the PUC as the
Plan Developer, this includes the State
legislature.
RE Act. The Rural Electrification Act
of 1936, as amended (7 U.S.C. 901 et seq.).
REA. The Rural Electrification Administration, formerly an agency of
the United States Department of Agriculture and predecessor agency to RUS
with respect to administering certain
electric and telephone loan programs.
RELRA. The Rural Electrification
Loan Restructuring Act of 1993 (107
Stat. 1356).
RUS. The Rural Utilities Service, an
agency of the United States Department of Agriculture established pursuant to Section 232 of the Federal Crop
Insurance Reform and Department of
Agriculture Reorganization Act of 1994
(Pub. L. 103–354, 108 Stat. 3178 (7 U.S.C.
6941 et seq.)), successor to REA with respect to administering certain electric
and telephone programs. See 7 CFR
1700.1.
RUS cost-of-money loan. A loan made
under section 305(d)(2) of the RE Act
bearing interest as determined under 7
CFR 1735.31(c). RUS cost-of-money

367

VerDate Dec<13>2002

19:58 Jan 19, 2003

Jkt 200020

PO 00000

Frm 00367

Fmt 8010

Sfmt 8010

Y:\SGML\200020T.XXX

200020T

§ 1751.101

7 CFR Ch. XVII (1–1–03 Edition)

loans are made concurrently with RTB
loans.
RUS hardship loan. A loan made by
RUS under section 305(d)(1) of the RE
Act bearing interest at a rate of 5 percent per year.
RTB loan. A loan made by the Rural
Telephone Bank (RTB) under section
408 of the RE Act bearing interest as
determined under 7 CFR 1610.10. RTB
loans are made concurrently with RUS
cost-of-money loans.
State. Each of the 50 states of the
United States, the District of Columbia, and the territories and insular possessions of the United States. This does
not include countries in the Compact
of Free Association.
Telecommunications. The transmission
or reception of voice, data, sounds, signals, pictures, writings, or signs of all
kinds, by wire, fiber, radio, light, or
other visual or electromagnetic means.
Telecommunications providers. RUS
Borrowers and if the Plan Developer is
a PUC, such other entities providing
telecommunications services as the developer of the Modernization Plan (See
§ 1751.101) may determine.
Wireline
Service.
Telecommunications service provided over telephone
lines. It is characterized by a wire or
wirelike connection carrying electricity or light between the subscriber
and the rest of the telecommunications
network. Wireline Service implies a
physical connection. Although radio
may form part of the circuit, it is not
the major method of transmission as in
radiotelephone.
§ 1751.101 General.
(a) It is the policy of RUS that every
State have a Modernization Plan which
provides for the improvement of the
State’s telecommunications network.
(b) A proposed Modernization Plan
must be submitted to RUS for approval. RUS will approve the proposed
Modernization Plan if it conforms to
the provisions of this subpart. Once obtained, RUS’s approval of a Modernization Plan cannot be rescinded.
(c) The Modernization Plan shall not
interfere with RUS’s authority to issue
such other telecommunications standards, specifications, requirements, and
procurement rules as may be promulgated from time to time by RUS in-

cluding, without limitation, those set
forth in 7 CFR part 1755.
(d) The Modernization Plan must, at
a minimum, apply to RUS Borrowers’
wireline service areas. If a Modernization Plan is developed by the PUC,
RUS encourages, but does not require,
that the Modernization Plan’s requirements apply to the rural service areas
of all providers of telecommunications
services in the State. A PUC’s decision
not to include non-RUS Borrowers will
not prejudice RUS approval of that
PUC’s Modernization Plan. The PUC
may also, at its option, extend coverage of the Modernization Plan to all
service areas of all providers of telecommunications services in the State.
In addition, while the requirements
and goals contained in § 1751.106 apply
only to wireline services, the PUC, at
its discretion, may extend coverage of
Modernization Plans to wireless or
other communications services in the
State as it deems appropriate. Borrower-developed Modernization Plans
apply only to Borrowers.
§ 1751.102 Modernization Plan Developer; eligibility.
(a) Each PUC is eligible until February 13, 1996 to develop a proposed
Modernization Plan and deliver it to
RUS. RUS will review and consider for
approval all PUC-developed Modernization Plans received by RUS within this
one year period. The review and approval, if any, may occur after the one
year period ends even though the PUC
is no longer eligible to submit a proposed Modernization Plan.
(b) The PUC must notify all Telecommunications Providers in the State
and other interested parties of its intent to develop a proposed Modernization Plan. The PUC is encouraged to
consider all Telecommunications Providers’ and interested parties’ views
and incorporate these views into the
Modernization Plan. In the event that
the PUC does not intend to develop a
proposed Modernization Plan, RUS requests that the PUC inform RUS of
this decision as soon as possible.
(c)(1) If the PUC is no longer eligible
to develop a Modernization Plan or has
informed RUS that it will not develop
a Modernization Plan, as described in
paragraphs (a) and (b) of this section, a

368

VerDate Dec<13>2002

19:58 Jan 19, 2003

Jkt 200020

PO 00000

Frm 00368

Fmt 8010

Sfmt 8010

Y:\SGML\200020T.XXX

200020T

Rural Utilities Service, USDA

§ 1751.104

majority of the Borrowers within the
State may develop the Modernization
Plan. If a majority of Borrowers develops the Modernization Plan, the following apply:
(i) All Borrowers shall be given reasonable notice of and shall be encouraged to attend and contribute to all
meetings and other proceedings relating to the development of the Modernization Plan; and
(ii) Borrowers developing a Modernization Plan are encouraged to solicit the views of other providers of
telecommunications services and interested parties in the State.
(2) There is no time limit placed on
Borrowers to develop a Modernization
Plan. Borrowers should be aware that
certain types of loans may be restricted until a Modernization Plan is
approved. See § 1751.103.
§ 1751.103 Loan and loan advance requirements.
(a) For information about loan eligibility requirements in relation to the
Modernization Plan, see 7 CFR part
1735. In particular, beginning February
13, 1996, RUS will make RUS hardship
loans, RUS cost-of-money loans, and
RTB loans for facilities and other RE
Act purposes in a State only if:
(1) The State has an RUS approved
Modernization Plan; and
(2) The Borrower to whom the loan is
to be made is participating in the Modernization Plan for the State. A Borrower is considered to be participating
if, in RUS’s opinion, the purposes of
the loan requested by the Borrower are
consistent with the Borrower achieving
the requirements stated in the Modernization Plan within the timeframe
stated in the Modernization Plan unless RUS has determined that achieving the requirements is not technically
or economically feasible.
(b) With regard to the three types of
loans discussed in paragraph (a), only
loans approved after the date the State
has an RUS approved Modernization
Plan are subject to complying with the
Modernization Plan.
(c) For loans subject to complying
with the Modernization Plan, advances
will not be made if, in RUS’s opinion,
the advances are not consistent with

achieving the requirements of the Modernization Plan.
§ 1751.104 Obtaining RUS approval of
a proposed Modernization Plan.
(a) To obtain RUS approval of a proposed Modernization Plan, the Plan Developer must submit the following to
RUS:
(1) A certified copy of the statute or
PUC order, if the PUC is the Plan Developer, or a written request for RUS
approval of the proposed Modernization
Plan signed by an authorized representative of the Plan Developer, if a
majority of Borrowers is the Plan Developer; and
(2) Three copies of the proposed Modernization Plan.
(b) Generally, RUS will review the
proposed Modernization Plan within
(30) days and either:
(1) Approve the Modernization Plan if
it conforms to the provisions of this
subpart in which case RUS will return
a copy of the Modernization Plan with
notice of approval to the Plan Developer; or
(2) Not approve the proposed Modernization Plan if it does not conform
to the provisions of this subpart. In
this event, RUS will return the proposed Modernization Plan to the Plan
Developer with specific written comments and suggestions for modifying
the proposed Modernization Plan so
that it will conform to the provisions
of this subpart. If the Plan Developer
remains eligible, RUS will invite the
Plan Developer to submit a modified
proposed Modernization Plan for RUS
consideration. This process can continue until the Plan Developer gains
approval of a proposed Modernization
Plan unless the Plan Developer is a
PUC whose eligibility has expired. If a
PUC’s eligibility has expired, RUS will
return the proposed Modernization
Plan unapproved. Because RUS does
not have authority to extend the term
of a PUC’s eligibility, RUS recommends that the PUC submit a proposed Modernization Plan at least 90
days in advance of February 13, 1996 to
allow time for this process.

369

VerDate Dec<13>2002

19:58 Jan 19, 2003

Jkt 200020

PO 00000

Frm 00369

Fmt 8010

Sfmt 8010

Y:\SGML\200020T.XXX

200020T

§ 1751.105

7 CFR Ch. XVII (1–1–03 Edition)

§ 1751.105 Amending a Modernization
Plan.
(a) RUS understands that changes in
standards, technology, regulation, and
the economy could indicate that an
RUS-approved
Modernization
Plan
should be amended.
(b) The Plan Developer of the Modernization Plan may amend the Modernization Plan if RUS finds the proposed changes continue to conform to
the provisions of this subpart.
(c) The procedure for requesting approval of an amended Modernization
Plan is identical to the procedure for a
proposed Modernization Plan except
that there are no time limits on the
eligibility of the Plan Developer.
(d) The existing Modernization Plan
remains in force until RUS has approved the proposed amended Modernization Plan.
(e) RUS may from time to time revise these regulations to incorporate
newer technological and economic
standards that RUS believes represent
more desirable goals for the future
course of telecommunications services.
Such revisions will be made in accordance with the Administrative Procedure Act. These revisions shall not invalidate Modernization Plans approved
by RUS but shall be used by RUS to determine whether to approve amendments to Modernization Plans presented for RUS approval after March
15, 1995.
§ 1751.106 Modernization
Plan;
requirements.
(a) The requirements for a Modernization Plan as stated in RELRA
are:
(1) The plan must provide for the
elimination of party line service.
(2) The plan must provide for the
availability of telecommunications
services for improved business, educational, and medical services.
(3) The plan must encourage and improve computer networks and information highways for subscribers in rural
areas.
(4) The plan must provide for—
(i) Subscribers in rural areas to be
able to receive through telephone
lines—
(A) Conference calling;
(B) Video images; and

(C) Data at a rate of at least 1,000,000
bits of information per second; and
(ii) The proper routing of information
to subscribers.
(5) The plan must provide for uniform
deployment schedules to ensure that
advanced services are deployed at the
same time in rural and nonrural areas.
(6) The plan must provide for such
additional requirements for service
standards as may be required by the
Administrator.
(b) To implement the requirements of
the law described in paragraph (a) of
this section, RUS has set minimum requirements as described in paragraphs
(i) and (j) of this section. They are
grouped into short-term and mediumterm requirements. RUS has also included long-term goals which are not
requirements. The Modernization Plan
must meet all of the statutory requirements of RELRA and shall provide that
short- and medium-term requirements
be implemented as set forth in this section of the regulation except that the
PUC, if it is the Plan Developer, or
RUS, if a majority of Borrowers is the
Plan Developer, may approve extensions of time if the required investment is not economically feasible or if
the best available telecommunications
technology lacks the capability to enable the Telecommunications Provider
receiving the extension to comply with
the Modernization Plan. Extensions
shall be granted only on a case-by-case
basis and generally shall not exceed a
total of five years from the first such
extension granted to the Telecommunications Provider.
(c) Each State’s Modernization Plan
shall be a strategic development proposal
for
modernizing
the
telecommunications network of the Telecommunications Providers covered by
the Modernization Plan. In addition to
implementing the requirements described in paragraphs (a), (i), and (j) of
this section, the Modernization Plan
shall include a short engineering description of the characteristics of a future
telecommunications
structure
that would enable all Telecommunications Providers to achieve the requirements and goals of the Modernization Plan.
(d) Within the scope of § 1751.101(d), if
the Plan Developer is the PUC, the

370

VerDate Dec<13>2002

19:58 Jan 19, 2003

Jkt 200020

PO 00000

Frm 00370

Fmt 8010

Sfmt 8010

Y:\SGML\200020T.XXX

200020T

Rural Utilities Service, USDA

§ 1751.106

Modernization Plan shall name the
Telecommunications Providers in the
State, in addition to Borrowers, that
are covered by the Modernization Plan.
(e) The Modernization Plan must require that the design of the network
provided by Telecommunications Providers allow for the expeditious deployment and integration of such emerging
technologies as may from time to time
become commercially feasible.
(f) The Modernization Plan must provide guidelines to Telecommunications
Providers for the development of affordable tariffs for medical links and
distance learning services.
(g) With regard to the uniform deployment requirement of the law restated in paragraph (a)(5) of this section, if services cannot be deployed at
the same time, only the minimum feasible interval of time shall separate
availability of the services in rural and
nonrural areas.
(h) The Modernization Plan must
make provision for reliable powering of
ordinary voice telephone service operating over those portions of the telecommunications network which are
not network powered. In the event of
electric utility power outages, an alternative source of power must be available to ensure reliable voice service.
(i) Short-term requirements. (1) The
‘‘short-term requirements start date’’
is the date one year after the date RUS
approves the Modernization Plan for
the State.
(2) All New Facilities providing
Wireline Service after the short-term
requirements start date, even if the
construction began before such date,
shall be constructed so that:
(i) Every subscriber can be provided
1-party service.
(ii) The New Facilities are suitable,
as built or with additional equipment,
to provide transmission and reception
of data at a rate no lower than 1 Mb/
sec.
(3) All switching equipment installed
by a Telecommunications Provider
after the short-term requirements
start date shall be capable of:
(i) Providing custom calling features.
At a minimum, custom calling features
must include call waiting, call for-

warding, abbreviated dialing, and
three-way calling; and
(ii) Providing E911 service for areas
served by the Telecommunication Provider when requested by the government responsible for this service.
(j) Medium-term requirements. (1) The
‘‘medium-term
requirements
start
date’’ is the date six years after the
date RUS approves the Modernization
Plan for the State, or such earlier date
as the Modernization Plan shall provide.
(2) All New Facilities providing
Wireline Service after the mediumterm requirements start date, even if
the construction began before such
date, shall be capable, as built or with
additional equipment, of transmitting
video to a subscriber. The video must
be capable of depicting a reasonable
representation of motion. The frame
rate, resolution, and other measures of
audio and video quality shall be determined by the Plan Developer.
(3) No later than the medium-term
requirements start date, all switching
equipment of Telecommunications Providers covered by the Modernization
Plan must be capable of providing E911
service when requested by the government responsible for this service.
(4) No later than five years after the
medium-term requirements start date,
one-party service must be provided
upon demand to any subscriber of a
Telecommunications Provider covered
by the Modernization Plan.
(k) Long-term goals. RUS suggests,
but does not require, that the provisions of each Modernization Plan be
consistent with the accomplishment of
the following:
(1) The elimination of party line service.
(2) For subscribers that desire the
service, universal availability of:
(i) Digital voice and data service (56–
164 kb/sec).
(ii) Service that provides transmission and reception of high bit rate
(no less than 1 Mb/sec) data.
(iii) Service that provides reception
of video as described in paragraph (j)(2)
of this section.

371

VerDate Dec<13>2002

19:58 Jan 19, 2003

Jkt 200020

PO 00000

Frm 00371

Fmt 8010

Sfmt 8010

Y:\SGML\200020T.XXX

200020T