This filing, scheduled to become effective January 1, 2009, consists of the tariff pages as indicated on the following check sheets

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1 Patrick Doherty Director Access Regulatory Affairs Four AT&T Plaza Room 1921 Dallas, Texas FRN: December 17, 2008 This filing is being made on a streamlined basis on 15 days notice under Section 204(a) (3) of the Communications Act. Ms. Marlene H. Dortch Secretary Federal Communications Commission Washington, D.C Attention: Wireline Competition Bureau The accompanying tariff material, issued by Pacific Bell Telephone Company (PBTC) and bearing Tariff F.C.C. No. 1, is sent to you for publication in compliance with the Commission's Rules and the requirements of the Communications Act of 1934, as amended. This filing, scheduled to become effective January 1, 2009, consists of the tariff pages as indicated on the following check sheets Tariff F.C.C. No. Check Sheet Revision No th Revised Page 1 90th Revised Page 1.2 With this filing, PBTC will: Revise the Universal Service Fund (USF) factor to calculate the 1st Quarter 2009 USF obligations. Update line counts used in the calculation of the Federal Universal Service Fund (FUSF) recovery charges billed to residential and business customers Supporting information discussed under Section of the Commission s Rules, to the extent applicable, is included with this filing in the attached Description and Justification. In accordance with Section 61.14, this transmittal letter and associated attachments are being filed electronically today via the Federal Communications Commission s Electronic Tariff Filing System (ETFS) in compliance with the electronic filing procedures.

2 Wireline Competition Bureau Page 2 December 17, 2008 Payment in the amount of $ has been electronically transmitted to the US Bank in St. Louis, Missouri, in accordance with the fee program procedures. The Form 159 is being transmitted electronically via ETFS as a proprietary document. These actions have been committed on the date established as the issued (filed) date as reflected above. Personal or facsimile service petitions against this Letter, as required under Section 1.773(a)(4) of the Commission s Rules, should be sent to Linda Quarles, Associate Director - Tariff Administration, 3535 Colonnade Parkway North, Room E3D1, Birmingham, Alabama 35243, facsimile number (214) All other correspondence and inquiries concerning this Transmittal should be addressed to Debra L. Clemens, Director-Federal Regulatory, (202) , th Street, N.W., Suite 1000, Washington, D.C Sincerely, Attachments: Letter Tariff Pages Description & Justification and Exhibits

3 PACIFIC BELL TELEPHONE COMPANY TARIFF F.C.C. NO th Revised Page 1 CANCELS 383rd Revised Page 1 ACCESS SERVICE CHECK SHEET Title Page and Pages 1 to 35-17, inclusive of this tariff are effective as of the date shown. Original and revised pages as named below and Supplement No. 9 contains all changes from the original tariff that are in effect on the date hereof. Number of Number of Number of Revision Revision Revision Except as Except as Except as Page Indicated Page Indicated Page Indicated Title 1 Original 1 384th* rd th* th 1.4 5th th th st rd nd nd th th 1.13 Original th th th st th th th nd th st th th th th 2 Original 2.1 2nd 3 1st 3.1 4th 3.2 1st 3.3 1st 3.4 3rd 3.5 1st 3.6 1st 4 Original 4.1 Original 5 Original 6 6th 7 Original 7.1 2nd 7.2 1st 8 3rd 8.1 3rd 9 3rd 10 1st 11 Original 12 Original 13 Original 14 4th 15 Original 16 Original 17 Original 17.1 Original 17.2 Original 18 1st 19 Original 20 Original 21 1st 22 7th th nd rd nd rd nd nd 23 Original 24 Original 25 Original 26 1st 27 Original 28 1st 29 Original 30 Original 31 Original 32 Original 33 4th 34 2nd 35 1st 36 Original 37 5th 38 2nd 39 1st 1-1 Original 1-2 Original 2-1 2nd 2-2 3rd 2-3 1st 2-4 1st 2-5 1st 2-6 4th 2-7 2nd 2-8 1st 2-9 Original 2-10 Original 2-11 Original 2-12 Original 2-13 Original 2-14 Original st th th th st th Original 2-20 Original 2-21 Original 2-22 Original 2-23 Original 2-24 Original 2-25 Original 2-26 Original 2-27 Original 2-28 Original 2-29 Original 2-30 Original 2-31 Original 2-32 Original 2-33 Original 2-34 Original 2-35 Original 2-36 Original 2-37 Original 2-38 Original st 2-40 Original 2-41 Original 2-42 Original 2-43 Original Original 2-44 Original (This page filed under ) Issued: December 17, 2008 Effective: January 1, 2009 Four AT&T Plaza, Dallas, Texas 75202

4 PACIFIC BELL TELEPHONE COMPANY TARIFF F.C.C. NO. 1 90th Revised Page 1.2 CANCELS 89th Revised Page 1.2 CHECK SHEET (Cont'd) Number of Number of Number of Revision Revision Revision Except as Except as Except as Page Indicated Page Indicated Page Indicated 3-2 Original 3-3 Original 3-4 Original 3-5 Original 3-6 Original 3-7 Original 3-8 Original 3-9 Original 3-10 Original 3-11 Original 3-12 Original 3-13 Original 3-14 Original 3-15 Original 3-16 Original st st nd nd 3-21 Original 3-22 Original 3-23 Original 3-24 Original 3-25 Original st 4-1 Original 4-2 4th 4-3 Original 4-4 Original 4-5 Original 4-6 4th 4-7 1st 4-8 1st 4-9 2nd st 4-11 Original th st* th rd* 5-1 5th 5-2 2nd 5-3 4th rd rd 5-4 4th th 5-5 2nd 5-6 Original 5-7 Original 5-8 Original 5-9 1st 5-10 Original 5-11 Original 5-12 Original nd Original Original Original th 5-14 Original th th th th th th th th th th th th th th th th 5-22 Original th th th 5-26 Original 5-27 Original 5-28 Original 5-29 Original 5-30 Original st st st 5-34 Original nd st 5-36 Original 5-37 Original 5-38 Original 5-39 Original 5-40 Original 6-1 1st 6-2 1st 6-3 2nd 6-4 1st 6-5 Original 6-6 Original 6-7 Original 6-8 Original (This page filed under ) Issued: December 17, 2008 Effective: January 1, 2009 Four AT&T Plaza, Dallas, Texas 75202

5 PACIFIC BELL TELEPHONE COMPANY TARIFF F.C.C. NO. 1 21st Revised Page CANCELS 20th Revised Page ACCESS SERVICE 4. End User Access Service (Cont'd) 4.6 Rates Regulations (Cont d) (I) Federal Universal Service Fund (FUSF) Surcharge (Cont d) (2) End User Port FUSF Surcharges When a customer is assessed the BRI ISDN port line charge as discussed in Section 4.6(H) preceding, a FUSF Surcharge will also be assessed as set forth in Section 4.7(G). (3) Other Non-recurring FUSF Surcharges In addition to the Basic FUSF Surcharges, when a customer is assessed any of the interstate end user charges identified in the table below, a FUSF Surcharge will also be apply as set forth in Section 4.7(G). For example, customers assessed the PIC change charge as specified in Section (b)(7)(a) following, will also be assessed the PIC change FUSF Surcharge as set forth in Section 4.7(G) following. Tariff Reference (b)(7)(a) Rate Element PIC Change Charge To the extent an IC is assessed the PIC Change Charge, the Nonrecurring FUSF Surcharge will also apply to the IC. (4) Other FUSF Surcharges A percentage surcharge factor is assessed monthly on billed recurring and non-recurring charges of end user services other than surcharges described in Section 4. FUSF Surcharge factor:.095 (R) (This page filed under ) Issued: December 17, 2008 Effective: January 1, 2009 Four AT&T Plaza, Dallas, Texas 75202

6 PACIFIC BELL TELEPHONE COMPANY TARIFF F.C.C. NO. 1 43rd Revised Page 4-13 CANCELS 42nd Revised Page End User Access Service (Cont'd) 4.7 Rates and Charges (Cont d) ACCESS SERVICE (E) End User Common Line (EUCL) - Non-Primary Residence Subscriber USOC Rates Per Month - Individual line or trunk, each 9ZEU2 $ 4.39 (F) End User Line Port Charge (1) BRI ISDN Port - Individual line or trunk, each 9SDN (2) PRI ISDN Port - Individual line or trunk, each 9SDN (G) Federal Universal Service Fund (FUSF) Surcharge (1) Basic Rate FUSF Surcharge (a) Residential 9PZRS $ 0.41(R) (b) Single-Line Business 9PZBU $ 0.41(R) (c) ISDN BRI 9PZL1 $ 0.50(R) (d) Multiline Business 9PZLM $ 0.54(R) or Supertrunks9PZLS (e) PRI ISDN 9PZP1 $ 5.81(R) (f) PBX 9PZPX $ 0.54(R) (g) Centrex CO and CO-Like 9PZCX $ 0.06(R) (2) Other Non-recurring FUSF Surcharges PIC Change FUSF Surcharge - per manual change 9PZGM $ 0.37(R) - per mechanized change 9PZGE 0.14(R) (This page filed under ) Issued: December 17, 2008 Effective: January 1, 2009 Four AT&T Plaza, Dallas, Texas 75202

7 PACIFIC BELL TELEPHONE COMPANY (PBTC) DESCRIPTION AND JUSTIFICATION DECEMBER 17, 2008 PURPOSE In this filing, Pacific Bell Telephone Company (PBTC) proposes to: Revise the Universal Service Fund (USF) factor to calculate the 1st Quarter 2009 USF obligations. Update line counts used in the calculation of the Federal Universal Service Fund (FUSF) recovery charges billed to residential and business customers. Federal Universal Service Fund Adjustments This portion of the filing is to revise PBTC s USF obligation based on updated line counts. The 1st Quarter 2009, contribution factor, 9.5%, was provided in the Commission s Public Notice, DA , released December 15, Recovery of this contribution is allowable pursuant to C.F.R The methodology used to calculate end user charges assessed to recover this liability is detailed below. Calculation of the Federal Universal Service Fund Flat Rate End User Charge To ensure compliance with the Commission s Interim Contribution Methodology Order, PBTC recovers its USF obligation associated with switched access services through various flat-rate end user charges. 1 The charges are assessed with respect to the interstate end user service that generates the USF obligation. PBTC assesses two general types of USF charges (Basic and Non- 1 See Federal-State Joint Board on Universal Service, 1998 Biennial Regulatory Review Streamlined Contributor Reporting Requirements Associated with Administration of Telecommunications Relay Service, North American Numbering Plan, Local Number Portability, and Universal Service Support Mechanisms, Telecommunications Services for Individuals with Hearing and Speech Disabilities, and the Americans with Disabilities Act of 1990, Administration of the North American Numbering Plan and North American Numbering Plan Cost Recovery Contribution Factor and Fund Size, Number Resource Optimization, Telephone Number Portability, CC Docket Nos , , , , , , , Report and Order and Second Further Notice of Proposed Rule Making, 17 FCC RCD (2002) (Interim Contribution Methodology Order). Page 1 of 4 December 17, 2008

8 recurring) for switched access customers. These charges are calculated using the following methodology as shown on Exhibit 1 and Exhibit 2. Basic USF Recovery Charges These charges are assessed to switched access lines, to recover the USF obligation associated with the assessment of End User Common Line (EUCL) and End User Port charges. 1. Residential/Single Line Business (SLB) PBTC develops the Basic USF charge for residential and single line business customers by multiplying EUCL charges assessed to these customers by the relevant contribution factor released by the Commission. The calculation for the Basic FUSF Residential/Single Line Business rate is demonstrated on Exhibit BRI ISDN PBTC develops the Basic USF charge for BRI ISDN and BRI ISDN Port customers by adding together EUCL and BRI ISDN / Centrex Port charges assessed to these customers to obtain the total basic interstate end user charges. The total basic interstate end user charges are multiplied by the relevant contribution factor released by the Commission. The calculation for the Basic FUSF BRI ISDN rate is demonstrated on Exhibit 1. Page 2 of 4 December 17, 2008

9 3. Multi-line Business, PRI ISDN, and Centrex PBTC elected to utilize the provisions granted in the Commission s Order and Second Order on Reconsideration regarding Centrex customers. 2 A portion of the unrecovered obligation created from using the PICC equivalency ratios for Centrex customers is applied to Multi-line business customers. However, due to the constraints included in the Commission s Order, PBTC averages the obligation associated with End User Common Line (EUCL) charges for Centrex customers. PBTC determines the basic USF recovery rate for business customers using the methodology detailed below. Establish the Basic Multi-line Business Rate Step 1 Determine total revenue using access lines as of September 2008 for these customers generated from EUCL assessments by multiplying the EUCL rate by the number of lines. Step 2 Multiply the result from Step 1 by the contribution factor to obtain the obligation associated with the customer base. Step 3 Divide the obligation developed in Step 2 by the number of billable lines (using lines as of September 2008). The line base is adjusted using PICC equivalency ratios as defined in Part The result is the Basic MLB rate per line. 2 See Federal-State Joint Board on Universal Service, 1998 Biennial Regulatory Review Streamlined Contributor Reporting Requirements Associated with Administration of Telecommunications Relay Service, North American Numbering Plan, Local Number Portability, and Universal Service Support Mechanisms, Telecommunications Services for Individuals with Hearing and Speech Disabilities, and the Americans with Disabilities Act of 1990, Administration of the North American Numbering Plan and North American Numbering Plan Cost Recovery Contribution Factor and Fund Size, Number Resource Optimization, Telephone Number Portability, CC Docket Nos , , , , , , , Order and Second Order on Reconsideration, FCC 03-58, para. 3 (rel. March 14, 2003). Page 3 of 4 December 17, 2008

10 Step 4 Add to the Basic MLB rate, all other USF recovery associated with the customer type. Step 4 is calculated by customer type for Multi-line business, PRI ISDN, and Centrex customers as shown in Exhibit 2. The final rates per customer type are detailed on both Exhibit 1 and Exhibit 2. These final rates preclude any recovery necessary from non-recurring interstate end user charges. Other Non-recurring USF Surcharges. Non-recurring USF surcharges are assessed to interstate end user non-recurring charges, which generate a USF obligation. PBTC calculates other non-recurring USF charges by multiplying the non-recurring charge by the contribution factor. These USF recovery charges will only be assessed per occurrence of the interstate end user non-recurring charge. The calculations for these charges are detailed in Exhibit 1. For billing purposes, the USF recovery charge may be added to the existing interstate end user charge, which generates the obligation. PBTC assesses Lifeline customers the non-recurring USF charges when they are assessed the non-recurring charge that generates the obligation. PBTC also assesses Interexchange Carriers (ICs) the Presubscribed Interexchange Change (PIC) USF Charge when the IC is assessed the PIC change charge. Other Recurring Federal Universal Fund Surcharges PBTC will continue to recover its other recurring (i.e. Special Access and True Internet Protocol to Public Switched Telephone Network (TIPToP) Service) USF obligations through a percentage-based USF recovery charge applied to interstate end user billed revenues. This percentage-based USF recovery charge is set equal to the Commission s contribution factor released via Public Notice. Page 4 of 4 December 17, 2008

11 Exhibit 1 Pacific Bell Telephone Company (PBTC) California Universal Service Fee (USF) Rate Development Source (A) (B) (C=A*B) 1st Quarter 2009 Contribution Factor DA Basic USF Recovery Charge Residential / Single-Line Business Rate USF Charge End User Common Line Rate $ 4.39 $ 0.41 BRI ISDN USF Charge End User Common Line Rate $ 4.39 BRI ISDN Port $ 0.97 Total Basic Interstate End User Revenue $ 5.36 $ 0.50 Multi-line Business Exhibit 2 $ 0.54 PBX Exhibit 2 $ 0.54 PRI ISDN Exhibit 2 $ 5.81 CENTREX Exhibit 2 $ 0.06 Other USF Recovery Charges PIC Manual Change Charge $ 3.98 $ 0.37 PIC Mechanized Change Charge $ 1.57 $ 0.14 Dec 17, 2008

12 Exhibit 2 Source (A) (B) (C=A*B) 1st Quarter 2009 Contribution Factor DA USF Charge Basic USF Recovery Charge for MLB, PRI, & Centrex Pacific Bell Telephone Company (PBTC) California Universal Service Fee (USF) Rate Development Multi-line Business, PRI ISDN, CENTREX Lines as of Sept 2008 L1 MLB Lines 3,251,117 L2 Centrex lines with less than 9 lines 219,178 L3 Centrex lines with greater than 9 lines 1,011,524 L4 PRI ISDN 33,580 L5 End User Common Line Rate $ 4.39 MLB, PRI ISDN, Centrex Revenue L6 MLB L5*L1 $ 14,269,770 L7 PRI ISDN L5*L4*5 $ 736,945 L8 Centrex (L5)*(L2+L3) $ 5,401,785 L9 MLB, PRI ISDN, Centrex Revenue L6:L8 $ 20,408,500 L10 MLB, PRI ISDN, Centrex Obligation L9*USF Factor $ 1,938,808 L11 PICC Equivalent Centrex Systems Line Counts 23,978 (As stated in FCC released March 14, 2003) L Billable Lines L1+(L3/9)+(L4*5)+L11 3,555,387 USF Rate per Line L13 Basic MLB Rate (L10/L12) $ 0.54 L14 Basic Centrex Rate L13/9 $ 0.06 L15 Basic PRI ISDN Rate (excluding Port recovery) L13*5 $ 2.70 Recovery Cross Check Verification L16 Basic MLB USF Recovery L1*L13 $ 1,755,603 L17 Basic Centrex USF Recovery (L3*L14)+(L11*L13) $ 73,640 L18 Basic PRI ISDN USF Recovery (L5*L15) $ 90,666 L19 Total MLB, PRI ISDN, Centrex Basic USF Recovery $ 1,919,909 (L19 < L10) OK Additives to the Basic MLB Rate PRI ISDN Rate L20 PRI ISDN Port Charge $ $ 3.11 Final Basic MLB, PRI ISDN, & Centrex USF Rates Summary L21 MLB L13 $ 0.54 L22 PBX L13 $ 0.54 L23 PRI ISDN L15+L20 $ 5.81 L24 Centrex L14 $ 0.06 Dec 17, 2008

Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D. C.

Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D. C. U NIVERSAL S ERVICE A DMINISTRATIVE C OMPANY Federal Universal Service Support Mechanisms Quarterly Contribution Base for the Fourth Quarter