Digital Commons Network^™

Allocating And Recovering Jointly Used Local Loop Telephone Costs, Irby William

Master's Theses

There is $2.3 Billion riding on the answer to a very critical question in the Virginia Telephone Industry. The question concerns who should pay for the embedded investment in jointly used wire and equipment connecting telephone customers to switching offices. This plant, many argue, is needed for access to the local and long distance network regardless of whether a call is made. Answering this question is a two step process. First these, costs must be allocated to the proper jurisdiction (intrastate or interstate) and the proper class of service (toll or local) within the jurisdiction. Second the costs must be …