Haw. Code R. § 6-80-35 - Cross-subsidization prohibited

(a) Noncompetitive services offered or provided by any telecommunications carrier must not cross subsidize the telecommunications carrier's competitive services.

(b) Cross-subsidization is deemed to have occurred if:

(1) Any fully competitive or partially competitive service is priced below the total service long run incremental cost of providing the service;

(2) Fully competitive services, taken as a whole, fail to cover their direct and allocated joint and common costs; or

(3) If fully competitive and partially competitive services, taken as a whole, fail to cover the direct and allocated joint and common costs.

(c) The total service long run incremental cost of a service must include an imputation of an amount equal to the contribution that the telecommunications carrier receives for the use of the carrier's noncompetitive inputs by other telecommunications carriers to provide the same or equivalent service.

(d) The total service long run incremental cost of a service is the sum of the:

(1) The tariffed rates for the noncompetitive services or noncompetitive service elements, or their functional equivalents, that the carrier itself utilizes to provide the service;

(2) Long run incremental costs of facilities and functionalities that are utilized but not specifically tariffed; and

(3) Long run incremental costs of any other identifiable element associated with the provision of the service.

(e) A telecommunications carrier may not offer a noncompetitive telecommunications service jointly with any fully or partially competitive service or with any interstate, international, or other service not within the jurisdiction of the commission, except upon the commission's express approval. The commission's approval is subject to a satisfactory showing by the telecommunications carrier seeking to offer such joint services that the costs of the fully or partially competitive service or the costs of the interstate, international, or other non-jurisdictional service are not subsidized by the noncompetitive service. An application for approval to offer any such joint services must be filed with the commission not less than thirty days before the joint services are marketed, sold, or advertised.

Notes

Haw. Code R. § 6-80-35

[Eff ] (Auth: HRS §§ 269-6, 269-34 to 43) (Imp: HRS §§ 269-34 to 43, 47 U.S.C. §254)