[Federal Register: March 18, 2004 (Volume 69, Number 53)]
[Proposed Rules]
[Page 12814-12826]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18mr04-20]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 36, 51, 52, 53, 54, 63, 64 and 69
[WC Docket No. 02-313; FCC 03-337]
Biennial Regulatory Review of Regulations Administered
AGENCY: Federal Communications Commission.
ACTION: Proposed rule.
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SUMMARY: In this document, the Commission seeks comment on whether
certain rules should be repealed or modified because they are no longer
necessary in the public interest. We intend to consider the comments
received pursuant to this Notice of Proposed Rulemaking and issue one
or more orders to repeal or modify the applicable rules, as
appropriate.
DATES: Comments are due on or before April 19, 2004. Reply comments are
due on or before May 3, 2004. Written comments on the proposed
information collection(s) must be submitted by the public, Office of
Management and Budget (OMB), and other interested parties on or before
April 19, 2004.
ADDRESSES: All filings must be sent to the Commission's Secretary,
Marlene H. Dortch, Office of the Secretary, Federal Communications
Commission, 445 12th Street, SW., Washington, DC 20554. In addition to
filing comments with the Secretary, a copy of any Paperwork Reduction
Act (PRA) comments on the information collection(s) contained herein
should be submitted to Judith B. Herman, Federal Communications
Commission, Room 1-C804, 445 12th Street, SW., Washington, DC 20554, or
via the Internet to Judith-B.Herman@fcc.gov, and to Kim A. Johnson, OMB
Desk Officer, Room 10236 NEOB, 725 17th Street, NW., Washington, DC
20503, or via the Internet to Kim A. Johnson@omb.eop.gov or by fax to
(202) 395-5167. Parties should also send three paper copies of their
filings to
[[Page 12815]]
Sheryl Todd, Telecommunications Access Policy Division, Wireline
Competition Bureau, Federal Communications Commission, 445 12th Street,
SW., Room 5-B540, Washington, DC 20554. See Supplementary Information
for further filing instructions.
FOR FURTHER INFORMATION CONTACT: Paul Garnett, Legal Counsel, Wireline
Competition Bureau, (202) 418-2332, TTY (202) 418-0484. For additional
information concerning the information collection(s) contained in this
document, contact Judith B. Herman at (202) 418-0214, or via the
Internet at Judith-B.Herman@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice
of Proposed Rulemaking (NPRM) in WC Docket No. 02-313, FCC 03-337,
released on January 12, 2004. The full text of this document is
available for public inspection during regular business hours in the
FCC Reference Center, Room CY-A257, 445 12th Street, SW., Washington,
DC 20554.
I. Introduction
1. Section 11 of the Communications Act of 1934, as amended (the
Act) directs the Commission to review biennially its regulations that
apply to the operations or activities of telecommunications service
providers; and determine whether those regulations are ``no longer
necessary in the public interest as the result of meaningful economic
competition between providers of such service.'' The Commission must
then modify or repeal any such regulations that are no longer necessary
in the public interest. Consistent with these obligations, we adopted a
Report in 2002 addressing certain legal and administrative matters
relating to the biennial regulatory review process.
2. Concurrent with the release of the 2002 Report, March 14, 2003
we released the 2002 Biennial Regulatory Review Staff Reports, prepared
by several of the Commission's operating Bureaus and the Office of
Engineering and Technology. In each Staff Report, the Bureau or Office
summarized its review of the rules under its purview to determine
whether to recommend that the Commission modify or repeal such rules.
We indicated in the 2002 Report that the Commission would, based on
these Staff Reports, issue notices of proposed rulemaking to repeal or
modify regulations that may no longer be in the public interest. By
this NPRM, we initiate one such proceeding for certain rules reviewed
by the Wireline Competition Bureau (WCB or the Bureau).
II. Discussion
A. Part 1--Practice and Procedure
3. Subpart E--Complaints, Applications, Tariffs, and Reports
Involving Common Carriers. Part 1 of the Commission's rules prescribes
general rules of practice and procedure for the Commission to follow in
carrying out its responsibilities. Section 1.815 requires common
carriers with 16 or more full-time employees to file an annual
employment report with the Commission (FCC Form 395). This report
provides statistical information on the racial, ethnic, and gender
makeup of a carrier's work force in nine specific job categories. The
rule was adopted to enable the Commission to monitor industry trends in
minority and female employment and to raise appropriate questions
regarding these patterns. Because federal and state equal employment
opportunity (EEO) agencies collect identical or similar information,
commenters stated that Sec. 1.815 imposes a needless paperwork burden
on the carriers.
4. Additionally, since 1994, licensees have been able to use FCC
Form 395 to file annual reports of employment-related discrimination
complaints. These reports must be filed by all licensees, regardless of
the number of employees, pursuant to Sec. Sec. 21.307(d), 22.321(c),
and 23.55(d) of the Commission's rules. Pursuant to these requirements,
any complaint filed against a carrier involving EEO violations of any
federal, state, territorial, or local laws must be reported to this
Commission. Such reports were intended to serve as a means by which the
Commission could monitor and investigate carrier practices ``indicating
a general pattern of disregard of equal employment practices.''
5. We seek comment on whether the Commission should continue to
require carriers to file annually FCC Form 395 and the report of
employment-related discrimination complaints. Specifically, we seek
comment on whether this collection is necessary to identify or address
issues relating to unlawful discrimination by common carriers, given
the availability of similar information from other sources. For
example, Sec. Sec. 21.307, 22.321, and 23.55 of the Commission's rules
provide mechanisms by which complaints alleging unlawful discrimination
may be filed against carriers, and the Commission investigates these
complaints or refers them to the EEOC where appropriate. We also seek
comment on whether Commission action to modify or eliminate form 395 is
appropriate given the efforts of the Advisory Committee on Diversity
for Communications in the Digital Age. Specifically, we seek comment on
whether this information is useful to the Advisory Committee. We also
seek comment on whether continued monitoring of common carrier
employment practices by the Commission pursuant to Sec. 1.815 and
utilizing FCC Form 395 is necessary in the public interest, or whether
other available sources provide sufficient information for parties to
rely on in filing EEOC complaints.
III. Part 36--Jurisdictional Separation Procedures
6. The part 36 rules are designed to recognize the dual state-
federal system of telecommunications regulation, with interstate
communications regulated at the federal level. They contain procedures
and standards for dividing telephone company investment, revenues,
expenses, taxes, and reserves between the state and the federal
jurisdictions. The division of costs between the state and federal
jurisdictions is necessary for the calculation of state and federal
earned rates of return. In addition to allocating costs between the
federal and state jurisdictions, part 36 also serves a universal
service function by permitting carriers that serve high-cost areas to
allocate additional local loop costs to the interstate jurisdiction and
to recover those costs through the high-cost universal service support
mechanism, thus making intrastate telephone service in high-cost areas
more affordable. As described below, we seek comment on the Bureau's
recommendations to modify or repeal certain outdated and expired
provisions in part 36, and propose modification or repeal of other
provisions that may no longer be necessary in the public interest.
7. Subpart A--General. We seek comment on certain proposed
modifications to this subpart to conform with current rules and
policies. First, we propose modifying paragraph (ii) of Sec.
36.2(b)(3), which sets forth the method for apportioning
telecommunications plant used jointly for state and interstate
operations, to indicate that ``holding time minutes'' is the basis for
measuring the use of both local and toll switching plant, and to
correct the erroneous removal of the provision for local switching
investment from this section. We also propose modifying Sec.
36.2(b)(3)(iv) to reflect the change from the subscriber plant factor
(SPF) to the
[[Page 12816]]
25 percent Gross Allocator for exchange plant, to conform with our
current rules and policies. We seek comment on these proposals.
8. Subpart B--Telecommunications Property. We propose modifying
Sec. 36.125(f) to specify how the weighting factors should be applied
in apportioning certain investment for study areas with fewer than
50,000 access lines. Additionally, several sections in this subpart
contain references to dates that have passed or provisions that have
expired by their own terms. For example, Sec. Sec. 36.154(d) through
(f) regarding interstate allocation of certain costs for the years 1988
through 1992 have expired, and thus appear to be no longer applicable.
We therefore propose to repeal these sections, as well as references to
Sec. Sec. 36.154(d) through (f) found in Sec. 36.154(c). We seek
comment on these proposals.
9. Subpart F--Universal Service Fund. The Bureau has recommended
repeal of certain provisions in this subpart that have expired by their
own terms. They include Sec. Sec. 36.631(a) and (b), which set forth
regulations for calculating interstate expense adjustment until
December 31, 1997, and Sec. 36.641, addressing transitional expense
adjustment, which is no longer applicable. We believe that these
provisions are no longer necessary because they have expired by their
own terms, and thus propose to repeal them. Finally, we propose to
modify Sec. 36.631(d) to specify that this provision applies only to
non-rural telephone companies serving study areas reporting more than
200,000 working loops. We seek comment on these proposals.
10. Miscellaneous Provisions. In addition, we seek comment on
whether to remove all references to Teletypewriter Exchange Service
(TWX) from part 36 of our rules. No carrier has reported data on TWX
since the Automated Reporting Management Information System (ARMIS)
database was established in 1988, and references to TWX were removed
from the ARMIS 43-04 report in 1999. We seek comment on whether to
retain the references in part 36 to TWX service because carriers are
still offering the service. Otherwise, we propose to delete all
references to TWX service from part 36 of our rules, and seek comment
on this proposal.
11. Finally, we seek comment on whether, given that activities
related to the provision of payphone service have been deregulated,
certain provisions in part 36 relating to payphone service should be
eliminated. Specifically, we propose deleting the last sentence both in
Sec. 36.142(a) and Sec. 36.377(a)(7), and seek comment on this
proposal.
IV. Part 42--Preservation of Records of Communications Common Carriers
12. Part 42 of the Commission's rules sets forth rules governing
the preservation of records of communications common carriers,
including all accounts, records, memoranda, documents, papers and
correspondence prepared by or on behalf of such carriers. Part 42 was
established to ensure the availability of carrier records needed by the
Commission to meet its regulatory obligations. In addition, part 42
serves the public interest by giving consumers access to information
about the rates, terms, and conditions for interstate interexchange
services.
13. In the 2002 WCB Staff Report, December 31, 2002, the Bureau
recommended that the Commission initiate a proceeding to examine
whether the part 42 rules should be modified or repealed, based on its
finding that it is unclear whether there are reasonable and less costly
alternatives that would ensure that accurate carrier records are
maintained. WCB specifically excluded Sec. Sec. 42.10 and 42.11 from
the recommendation, however, citing to support in the comments for
retaining these sections, and indicating that the Commission recently
addressed them in a rulemaking. These sections prescribe the public
disclosure and information maintenance requirements with which non-
dominant interexchange carriers must comply, which include making
available to the public information on the rates, terms, and conditions
of their international and interstate interexchange services. We agree
with the Bureau that consumers should continue to have available to
them this information about carriers' rates, terms, and conditions, and
therefore will not revisit whether the Sec. Sec. 42.10 and 42.11
remain necessary in the public interest at this time.
14. Because we also agree with the Bureau that the remaining rules
in part 42 merit a review to determine whether there are reasonable and
less costly alternatives for maintaining carrier records, we seek
comment on the continuing usefulness of Sec. Sec. 42.1 through 42.9 in
their current form. Specifically, we seek proposals on less costly and
more efficient ways to collect, preserve, and maintain carrier records
and reports. Parties recommending that we change these procedures
should specifically address the likely effect on the ability of the
Commission, consumers, and other parties (such as those responsible for
law enforcement) to access this important information. We make no
specific proposal to modify or repeal these rules at this time, but
will determine whether further rulemaking activity is warranted based
on the comments received.
V. Part 51--Interconnection
15. Part 51 of the Commission's rules implements Sec. Sec. 251 and
252 of the Act. Most significantly, these provisions require that
incumbent local exchange carriers (LECs) open their networks to
competition, and thus, these provisions are critical to fostering local
exchange and exchange access competition as envisioned by Congress.
Section 251 establishes pro-competitive requirements for
telecommunications carriers, LECs, and incumbent LECs; and provides
that all telecommunications carriers have a duty to interconnect with
other telecommunications carriers. Section 252 establishes procedures
for negotiating, arbitrating, and approving interconnection agreements,
and provides for pricing standards, including pricing of services
offered for resale. We seek comment on certain provisions in this
subpart that, for various reasons, may no longer be necessary in the
public interest.
16. Subpart C--Obligations of All Local Exchange Carriers. Section
51.211 provides the toll dialing parity implementation schedule for
LECs and Bell Operating Companies (BOCs). The section contains a number
of expired deadlines by which LECs and BOCs were required to implement
toll dialing parity and/or notify the Commission of their failure to do
so, none of which appear to have any remaining relevance. We therefore
propose to repeal Sec. Sec. 51.211(a) though (e), and seek comment on
this proposal. We also seek comment on whether paragraph (f), which
defines the term ``in-region, interLATA toll service'' as it is used in
Sec. Sec. 51.211 and 51.213, should be retained if we repeal
paragraphs (a) through (e).
17. Section 51.213(c) also contains a number of expired deadlines,
none of which appear to have any remaining relevance. Accordingly, we
propose to repeal paragraph (c). We also propose to repeal paragraph
(d), given that this paragraph only provides procedural rules for
handling implementation plans filed pursuant to paragraph (c), and seek
comment on these proposals.
18. Subpart D--Additional Obligations of Incumbent Local Exchange
Carriers. Sections 51.325 through 51.335 comprise the Commission's
network change
[[Page 12817]]
disclosure rules. These rules require incumbent LECs to ``provide
reasonable public notice of changes in the information necessary for
the transmission and routing of services using local exchange carriers'
facilities or networks, as well as of any other changes that would
affect the interoperability of those facilities or networks.'' The
Commission found that these rules were necessary to ensure that
competitors receive prompt and accurate notice of changes that could
affect their ability to interconnect with the incumbent's network. The
Bureau suggested in the 2002 WCB Staff Report, however, that the
procedures for disclosing network changes may have become unnecessarily
complicated in light of carriers' ability to provide notice of changes
and other information via the Internet. Since the issuance of the 2002
WCB Staff Report, the Commission amended these rules in the Triennial
Review Order, 68 FR 52276 (September 2, 2003), as part of its fiber-to-
the-home (FTTH) unbundling analysis, relying on the Commission's role
in the public notice disclosure process as a critical means of
notifying competitors of incumbent LECs' plans to replace copper loops
or copper subloops with fiber. That decision recognized the importance
of public disclosure of planned copper loop retirement and sought to
ensure that competitive LECs maintain access to loop facilities where
necessary, and modified the rules accordingly.
19. Although the Commission recently strengthened the network
disclosure rules in certain respects as described above, we
nevertheless believe that the Commission should streamline one aspect
of these rules. Specifically, we propose deleting Sec. 51.329(c)(3) of
the Commission's rules that requires that paper and diskette copies of
the incumbent LEC's public notice or certification be sent to the Chief
of the Bureau. We find that this requirement is no longer necessary to
the public interest. Due to the other public filing and notification
provisions of this section and the continual review by Commission staff
of these filings, direct service of a copy of these submissions upon
the Chief of the Bureau represents an unnecessary expenditure of
resources. However, we do not extend this tentative conclusion to
remove all obligations to notify the Commission, as some commenters
have suggested. In light of the importance we placed in the Triennial
Review Order on the modifications to our network disclosure rules, we
do not believe that Internet posting is a sufficient method of
disclosure. Given the modifications to our network change disclosure
rules made in the Triennial Review Order, we seek comment on whether we
should modify Sec. 51.329(c)(1), which enumerates the specific titles
that incumbent LECs must use when providing public notice, or
certification of public notice, of network changes. Specifically, we
seek comment on whether modifying our rules by adding specific titles
to identify notices of replacement of copper loops or copper subloops
with FTTH loops would assist both incumbent LECs and other parties in
determining the applicable notice rules.
20. Subpart F--Pricing of Elements. Section 51.515 of the
Commission's rules provides that neither interstate access charges nor
comparable intrastate access charges shall be assessed by an incumbent
LEC on purchasers of unbundled elements. Paragraphs (b) and (c) of that
section, however, permit incumbent LECs to assess certain interstate
and intrastate access charges for a limited period of time, but in no
event after June 30, 1997. These provisions appear to be no longer
applicable because their effective dates have expired. Accordingly, we
propose to repeal Sec. Sec. 51.515 (b) and (c), and seek comment on
this proposal.
VI. Part 52--Numbering
21. Part 52 implements the requirements of 251(e) of the Act, which
gives the Commission exclusive jurisdiction over those portions of the
North American Numbering Plan (NANP) that pertain to the United States.
Part 52 contains rules governing the administration of the NANP, as
well as rules that are designed to ensure that users of
telecommunications services can retain, at the same location, their
existing telephone numbers when they switch from one local exchange
telecommunications carrier to another. We seek comment on various
provisions in this part to determine whether they remain necessary in
the public interest.
22. Subpart A--Scope and Authority. On December 23, 2002, WCB took
action to allow American Samoa to participate in the NANP and requested
that the North American Numbering Plan Administrator (NANPA) set aside
ten central office (or NXX) codes in the 684 area code for assignment
to carriers operating in American Samoa. We therefore propose to affirm
the Bureau's action by updating Sec. 52.5(c) to include American Samoa
on the list of U.S. territories participating in the NANP, and seek
comment on this proposal.
23. Subpart B--Administration. Through a series of Reports and
Orders issued since the passage of the 1996 Act, the Commission has
undertaken a more active role in establishing numbering policy and
regulations for the industry to follow. In addition, several aspects of
numbering administration have been delegated to state commissions. We
therefore propose several modifications to this subpart to more
accurately reflect the current roles of the Commission and the industry
in numbering administration.
24. The national numbering administrators, which include the NANPA,
the Pooling Administrator (PA), and the billing and collection agent
are currently selected through a competitive bidding process pursuant
to the Federal Acquisitions Regulations (FAR). Thus, the North American
Numbering Council (NANC), the Commission's advisory committee for
numbering issues, no longer is responsible for recommending an entity
to serve as the NANPA. We therefore propose to repeal Sec. 52.11(d).
We also propose to modify Sec. Sec. 52.13(b) and 52.13(b)(3) to
reflect the current role of the Commission in directing policy on and
accommodating current and future numbering needs. We further propose to
delete references to the Central Office Code Utilization Survey
(COCUS), which is no longer used by the NANPA to collect number
utilization and forecast information from carriers. We seek comment on
these proposals.
25. We also propose to repeal portions of Sec. 52.15 of the
Commission's rules. Paragraph (c) sets forth regulations for
telecommunications carriers that perform central office code
administration. All such administration is currently performed by the
NANPA, so these provisions are no longer applicable. Similarly,
paragraphs (d) and (e) address CO code administration functional
requirements, and describe procedures for the initial transfer of
numbering administration functions from Bellcore and certain carriers
to the first NANPA. Because the transfer of these functions occurred
more than five years ago, and because the NANPA's functional
requirements are detailed in Sec. 52.13, Commission orders, and
industry guidelines, it appears that portions of paragraphs (d) and (e)
are no longer applicable. We therefore seek comment on our proposal to
modify or delete these provisions.
26. Subpart C--Number Portability. We also seek comment on several
proposed changes to our local number portability (LNP) rules to reflect
the current status of LNP implementation. Specifically, we propose to
update Sec. 52.23 to reflect the passage of the deadline for
deployment of LNP in the
[[Page 12818]]
largest 100 metropolitan statistical areas (MSAs). Specifically, Sec.
52.23(b) sets forth requirements relating to the initial deployment of
wireline LNP, which was completed in 1998. Accordingly, we seek comment
of whether these rules should be modified. Similarly, Sec. Sec.
52.23(d) through (f) contain provisions relating to the original
deployment schedule for wireline LNP. We also seek comment on whether
these rules should be modified. In addition, because the field tests
discussed in Sec. 52.23(g) have been completed, this provision is no
longer necessary and we propose to repeal it as well. Because long-term
database methods for number portability have been developed and
implemented, there also appears to no longer be a need for the
regulations in Sec. Sec. 52.27 and 52.29 governing the implementation
of transitional measures. We therefore propose to modify these rules.
We seek comment on these proposals.
27. Finally, the November 24, 2003 deadline for implementation of
LNP by Commercial Mobile Radio Services (CMRS) recently passed. We
therefore seek comment on whether certain provisions in Sec. 52.31 of
the Commission's rules should be modified. First, we propose to repeal
Sec. 52.31(c), which, in its current form, has expired by its own
terms. We seek comment on this proposal. Further, because Sec. Sec.
52.31 (d) through (e) contain provisions relating to the original
deployment schedule for wireline LNP we seek comment on whether these
sections should be retained or modified.
VII. Part 53--Special Provisions Concerning Bell Operating Companies
28. Part 53 of the Commission's rules generally implements the
structural safeguards pursuant to section 272 and certain requirements
in section 271 of the Act. Section 272 establishes safeguards
applicable to BOC equipment manufacturing, provision of in-region
interLATA telecommunications service, and provision of interLATA
information services (other than electronic publishing and alarm
monitoring). Section 271 prescribes certain requirements concerning
joint marketing of local exchange and long distance services.
29. Subpart B--Bell Operating Company Entry Into InterLATA Service.
Section 53.101 provides that BOCs serving more than 5 percent of the
national presubscribed access lines may not jointly market their local
and interLATA services until the earlier of the BOCs' authorization to
provide in-region, interLATA services or February 8, 1999. Because the
expiration date of the prohibition against joint marketing for all BOCs
has passed, Sec. 53.101 appears to have expired by its own terms.
Thus, we propose to repeal this provision as no longer necessary in the
public interest, and seek comment on this proposal.
G. Part 54--Universal Service
30. Sections 214(e) and 254 of the Act direct the Commission to
establish specific, predictable, and sufficient mechanisms to preserve
and advance universal service. Part 54 promotes universal service by
establishing explicit mechanisms to ensure that all consumers,
including consumers living in rural, insular, and high-cost areas as
well as low-income consumers, have access to affordable
telecommunications services. Part 54 is designed to accomplish these
goals in a competitively neutral manner by collecting support from
every telecommunications carrier that provides interstate
telecommunications service, and by making support available on a
technologically neutral basis to any eligible service provider. We seek
comment below on whether certain provisions in this Part should be
modified or repealed because they are no longer necessary in the public
interest.
31. Subpart C--Carriers Eligible for Universal Service Support. We
seek comment on whether there are any state commissions that have not
yet designated as an eligible telecommunications carrier a carrier that
sought such a designation before January 1, 1998, pursuant to Sec.
54.201(a)(2). If not, it appears that this provision is no longer
necessary, and we therefore propose to delete it. We seek comment on
this proposal.
32. Subpart D--Universal Service Support for High Cost Areas.
Sections 54.303(b)(1) through (3) appear to have expired by their own
terms. Nevertheless, we note that these provisions may assist carriers
in calculating long term support (LTS). Accordingly, we propose
retaining Sec. Sec. 54.303(b)(1) through (3) of our rules and seek
comment on this proposal. We also seek comment on whether Sec. Sec.
54.313(d)(1) and (2), which contain deadlines for the first and second
program years, remain necessary. Because these provisions appear to
have expired by their own terms, we propose to delete them. We seek
comment on this proposal.
33. Subpart F--Universal Service Support for Schools and Libraries.
Certain provisions in Sec. 54.507(b), particularly paragraphs (1) and
(2) regarding funding year 1998-99, appear to have expired by their own
terms. We believe, however, that this section may remain necessary to
allow proper adjustment of certain prior funding commitments. We
therefore propose to retain and update, rather than repeal, this
section, and seek comment on this proposal.
34. Subpart G--Universal Service Support for Health Care Providers.
We propose to eliminate several sections in this subpart that appear to
have expired by their own terms. For example, Sec. 54.604(a)(2)
addresses contracts signed after July 10, 1997 but ``before the date on
which the universal service competitive bid system described in
[section 54.603] is operational.'' Because it appears that this time
period has expired, we propose to delete this provision. Similarly,
Sec. Sec. 54.604(d), 54.623(b), and 54.623(c)(2) and (3) contain
provisions that appear to no longer be applicable. We therefore seek
comment on whether they should be repealed in whole or in part. We also
propose modifying Sec. 54.623(c)(4) by adding language to reflect that
applications submitted within subsequent filing periods will be treated
as simultaneously received. We seek comment on these proposals.
H. Part 63--Extension of Lines, New Lines, and Discontinuance,
Reduction, Outage and Impairment of Service by Common Carriers; and
Grants of Recognized Private Operating Agency Status
35. Section 214 of the Act provides that no carrier shall undertake
the construction of a new line or extension of any line, or shall
acquire or operate any line, or extension thereof, without first having
obtained a certificate from the Commission that the present or future
public convenience and necessity require the construction and/or
operation of such extended line. Section 214 also provides that no
carrier shall discontinue, reduce or impair service to a community
without first having obtained a certificate from the Commission that
neither the present nor future public convenience and necessity will be
adversely affected by such action. Part 63 of our rules implements
these provisions. We seek comment below on whether certain of the
provisions in this part are no longer necessary in the public interest.
36. General Provisions Relating to All Applications Under Section
214; Discontinuance. Section 63.61 provides that any carrier subject to
the provisions of section 214, except a non-dominant carrier as defined
in our rules, that seeks to discontinue, reduce, or impair service,
must file for and receive
[[Page 12819]]
authority from the Commission in order to take such action. Section
63.71 requires that any domestic carrier (including non-dominant
carriers) must file for and receive authority from the Commission
before discontinuing, reducing, or impairing service. The Commission
adopted Sec. 63.71 more recently, and clearly intended its
requirements to apply to non-dominant domestic carriers. These
requirements in fact have been applied to non-dominant domestic
carriers consistently since the rule was adopted. Nevertheless, because
Sec. 63.61 was mistakenly left unchanged when Sec. 63.71 was adopted,
we propose to modify Sec. 63.61 to clear up any confusion about non-
dominant domestic carriers' obligation to abide by Sec. 63.71. We also
propose to correct the erroneous cross-reference to Sec. 61.3(u) in
Sec. 63.61, as the term ``non-dominant carrier'' is defined in Sec.
61.3(y). We further propose to revise Sec. Sec. 63.61 and 63.71 to
make clear that the procedures for the discontinuance, reduction or
impairment of international services are governed by Sec. 63.19 of our
rules. We seek comment on these proposals.
37. We also propose to correct a discrepancy relating to when
customers must file comments with the Commission in response to a
carrier's proposed discontinuance, reduction or impairment of service.
Section 63.71(a)(5)(i) and (ii) provide boiler plate language for
carriers to advise affected customers of a proposed discontinuance,
reduction, or impairment of service, and their right to file comments
with the Commission within 15 days (30 days for dominant carrier
customers) after receipt of said notice. As a practical matter,
however, customers have longer than this period because they receive
actual notice of the proposed discontinuance before the date of public
notice. To illustrate, Sec. 63.71 applications are not deemed filed
until the Commission releases public notice of the proposed action, and
the publication of this notice generally takes place after the date
customers receive notice. Consequently, customers have longer than 15
days (or 30 days if applicant is a dominant service provider) from
actual receipt of notice to file comments. We therefore propose to
modify these paragraphs to more accurately reflect actual notice
periods and procedures. We seek comment on these proposals.
I. Part 64--Miscellaneous Rules Relating to Common Carriers
38. Part 64 of the Commission's rules addresses miscellaneous
provisions pertaining to the regulation of common carriers. Subpart M
implements section 276 of the Communications Act of 1934, as amended,
concerning the provision of payphone service. These rules govern
compensation to payphone providers by carriers that receive calls from
payphones; require states to review and remove any state regulation
that limits market entry and exit by payphone providers; and establish
regulations to ensure that individuals with disabilities can use
payphones. Subpart T establishes separate subsidiary requirements
applicable to the provision of in-region, interstate domestic,
interexchange services and in-region international interexchange
services by incumbent independent local exchange carriers. We seek
comment on whether certain provisions in these Subparts are no longer
necessary in the public interest.
39. Subpart M--Provision of Payphone Service. Section 64.1330(c)
requires that states review and remove payphone regulations that may
impose market entry or exit requirements. Because the September 20,
1998, deadline in this provision has passed, it appears to no longer be
applicable. We therefore seek comment on whether this provision should
be repealed. In the alternative, we seek comment on whether the
requirement for state review of regulations remains necessary, and thus
whether we should modify or update, rather than eliminate, this
provision. We ask parties to address whether and to what extent these
requirements should be extended. We also seek specific comment on
whether elimination of this requirement would adversely impact
competition or the public interest.
40. Subpart T--Separate Affiliate Requirements. Section 64.1903(c)
contains a deadline for compliance with the requirements of this
section that expired more than six years ago. Accordingly, we propose
to delete this provision as no longer necessary, and to modify Sec.
64.1903(a) so that its reference to paragraph (c) is removed. We seek
comment on these proposals.
J. Part 69--Access Charges
41. Sections 201 and 202 of the Act require that rates, terms, and
conditions for telecommunications services be just and reasonable, and
prohibit unjust or unreasonable discrimination. Part 69 implements
these sections of the Act by establishing rules that perform several
major functions, including establishing the rate structure for access
charges to be paid by interexchange carriers to local exchange carriers
(LECs) for the origination and termination of long distance calls, as
well as the access charges to be paid directly by end users; governing
how rate-of-return LECs calculate their access charge rates; in
conjunction with the part 61 price cap rules, establishing the degree
of pricing flexibility available to price-cap LECs; and providing for
the establishment of the National Exchange Carrier Association (NECA),
which files tariffs on behalf of many of the smaller, rate-of-return
LECs.
42. Subpart B--Computation of Charges. Sections 69.116 and 69.117
establish methodologies to assess charges on certain interexchange
carriers for the universal service fund and lifeline assistance,
respectively. These sections provided for an effective period from
August 1, 1988, through December 31, 1997; thus, it appears that they
have expired on their own terms. Accordingly, we propose to repeal
Sec. Sec. 69.116 and 69.117 as no longer necessary, and seek comment
on this proposal.
43. Similarly, Sec. 69.126 provides that incumbent local exchange
carriers shall not assess any nonrecurring charges for service
connections when an interexchange carrier converts trunks from tandem-
switched transport to direct-trunked transport, or when an
interexchange carrier orders the disconnection of over-provisioned
trunks, until six months after the effective date of tariffs
eliminating the unitary pricing option for tandem-switched transport.
All carriers to which this section applies have eliminated the unitary
pricing option for tandem-switched transport. Thus, this provision does
not appear to have any remaining relevance. Accordingly, we propose to
repeal Sec. 69.126, and seek comment on this proposal.
44. Section 69.127 provides for the retention of the transport rate
structure in effect on August 1, 1991, until tariffs filed pursuant to
the Transport Rate Structure and Pricing Report and Order become
effective. Tariffs filed pursuant to that Report and Order have become
effective for all applicable carriers. Therefore, by its own terms,
Sec. 69.127 is no longer applicable. Accordingly, we propose to repeal
Sec. 69.127, and seek comment on this proposal.
45. Subpart G--Exchange Carrier Association. Section 69.612
provides for an effective period from July 1, 1994 through December 31,
1997 for long-term support payments to participants in the National
Exchange Carrier Association common line tariff. These provisions are
no longer applicable because their effective dates have expired. We
therefore propose to repeal this section as no longer necessary, and
seek comment on this proposal.
[[Page 12820]]
VIII. Procedural Matters
A. Ex Parte Presentations
46. This matter shall be treated as a ``permit-but-disclose''
proceeding in accordance with the Commission's ex parte rules. Persons
making oral ex parte presentations are reminded that memoranda
summarizing the presentations must contain summaries of the substance
of the presentations and not merely a listing of the subjects
discussed. More than a one or two sentence description of the views and
arguments presented generally is required. Other rules pertaining to
oral and written ex parte presentations in permit-but-disclose
proceedings are set forth in Sec. 1.1206(b) of the Commission's rules.
B. Initial Paperwork Reduction Act Analysis
47. This NPRM proposes to eliminate or modify in whole or in part
certain information collections. As part of a continuing effort to
reduce paperwork burdens, we invite the general public and the Office
of Management and Budget (OMB) to take this opportunity to comment on
the information collections contained in this NPRM, as required by the
Paperwork Reduction Act of 1995, Public Law 104-13. Public and agency
comments are due at the same time as other comments on this NPRM; OMB
comments are due April 19, 2004.
C. Initial Regulatory Flexibility Analysis
48. As required by the Regulatory Flexibility Act (RFA), the
Commission has prepared this Initial Regulatory Flexibility Analysis
(IRFA) of the possible significant economic impact on small entities by
the policies and rules proposed in this NPRM. Written public comments
are requested on this IRFA. Comments must be identified as responses to
the IRFA and must be filed by the deadlines for comments on the NPRM
provided. The Commission will send a copy of the NPRM, including this
IRFA, to the Chief Counsel for Advocacy of the Small Business
Administration. In addition, the NPRM and IRFA (or summaries thereof)
will be published in the Federal Register.
1. Need for and Objectives of the Proposed Rules
49. In September 2002, the Commission issued Public Notices seeking
comment from the public on which rules should be modified or repealed
as part of the 2002 Biennial Regulatory Review. The Commission later
released a Report addressing certain legal and administrative matters
relating to the biennial regulatory review process. Concurrent with the
release of the 2002 Report, the Commission released the 2002 Regulatory
Review Staff Reports, drafted by several of the Commission's operating
Bureaus an the Office of Engineering and Technology, which summarized
their review of the rules under their purview to determine whether to
recommend that the Commission modify or repeal such rules. This NPRM
seeks comment on rules that the Commission believes may be appropriate
for repeal or modification because they are outdated, have expired by
their own terms, or as a result of competition may no longer be
necessary in the public interest in their current form.
2. Legal Basis
50. The legal basis as proposed for this NPRM is contained in
sections 1, 3, 4, 201-205, 214, 251, 252, 254, 272, 276, and 403 of the
Communications Act of 1934, as amended.
3. Description and Estimate of the Number of Small Entities to Which
the Proposed Rules Will Apply
51. The RFA directs agencies to provide a description of, and where
feasible, an estimate of the number of small entities that may be
affected by the proposed rules, if adopted. The RFA generally defines
the term ``small entity'' as having the same meaning as the terms
``small business,'' ``small organization,'' and ``small governmental
jurisdiction.'' In addition, the term ``small business'' has the same
meaning as the term ``small business concern'' under the Small Business
Act. A ``small business concern'' is one which: (1) Is independently
owned and operated; (2) is not dominant in its field of operation; and
(3) satisfies any additional criteria established by the Small Business
Administration (SBA).
52. No new rules are proposed in the NPRM; only modifications to or
elimination of certain rules. Therefore, the proposals in this
proceeding will not likely have a significant (negative) economic
impact on service providers, including small entities. In fact, because
several information collections are proposed to be eliminated, we
expect that any impact on small entities will be positive (i.e., will
eliminate economic burdens). Nevertheless, we consider in this IRFA
analysis small incumbent local exchange carriers, local exchange
carriers, competitive access providers, competitive local exchange
carriers, cellular, PCS and other wireless service providers that are
small entities.
53. Small Incumbent Local Exchange Carriers. We have included small
incumbent local exchange carriers in this present RFA analysis. As
noted above, a ``small business'' under the RFA is one that, inter
alia, meets the pertinent small business size standard (e.g., a
telephone communications business having 1,500 or fewer employees), and
``is not dominant in its field of operation.'' The SBA's Office of
Advocacy contends that, for RFA purposes, small incumbent local
exchange carriers are not dominant in their field of operation because
any such dominance is not ``national'' in scope. We have therefore
included small incumbent local exchange carriers in this RFA analysis,
although we emphasize that this RFA action has no effect on Commission
analyses and determinations in other, non-RFA contexts.
54. Competitive Local Exchange Carriers (CLECs), Competitive Access
Providers (CAPs) and ``Other Local Exchange Carriers.'' Neither the
Commission nor the SBA has developed a size standard for small
businesses specifically applicable to providers of competitive exchange
services or to competitive access providers or to ``Other Local
Exchange Carriers.'' The closest applicable size standard under SBA
rules is for Wired Telecommunications Carriers. Under that size
standard, such a business is small if it has 1,500 or fewer employees.
According to Commission data, 609 companies reported that they were
engaged in the provision of either competitive access provider services
or competitive local exchange carrier services. Of these 609 companies,
an estimated 458 have 1,500 or fewer employees and 151 have more than
1,500 employees. In addition, 55 carriers reported that they were
``Other Local Exchange Carriers.'' Of the 55 ``Other Local Exchange
Carriers,'' an estimated 53 have 1,500 or fewer employees and two have
more than 1.500 employees. Consequently, the Commission estimates that
most providers of competitive local exchange service, competitive
access providers, and ``Other Local Exchange Carriers'' are small
entities that may be affected by the rules and policies adopted herein.
55. Wireless Service Providers. The SBA has developed a small
business size standard for wireless small businesses within the two
separate categories of Paging and Cellular and Other Wireless
Telecommunications. Under both SBA categories, a wireless business is
small if it has 1,500 or fewer employees. According to the
[[Page 12821]]
Commission's most recent data, 1,387 companies reported that they were
engaged in the provision of wireless service. Of these 1,387 companies,
an estimated 945 have 1,500 or fewer employees and 442 have more than
1,500 employees. Consequently, the Commission estimates that most
wireless service providers are small entities that may be affected by
the rules and policies adopted herein.
56. Broadband Personal Communications Service (PCS). The broadband
PCS spectrum is divided into six frequencies designated A through F,
and the Commission has held auctions for each block. The Commission
defined ``small entity'' for Blocks C and F as an entity that has
average gross revenues of less than $40 million in the three previous
calendar years. For Block F, an additional classification for ``very
small business'' was added and is defined as an entity that, together
with their affiliates, has average gross revenues of not more than $15
million for the preceding three calendar years. These regulations
defining ``small entity'' in the context of broadband PCS auctions have
been approved by the SBA. No small businesses within the SBA-approved
definition bid successfully for licenses in Blocks A and B. There were
90 winning bidders that qualified as small entities in the Block C
auctions. A total of 93 small and very small business bidders won
approximately 40% of the 1,479 licenses for Blocks D, E, and F. On
March 23, 1999, the Commission re-auctioned 347 C, D, E, and F Block
licenses; there were 48 small business winning bidders. Based on this
information, we conclude that the number of small broadband PCS
licensees will include the 90 winning C Block bidders and the 93
qualifying bidders in the D, E, and F blocks, plus the 48 winning
bidders in the re-auction, for a total of 231 small entity PCS
providers as defined by the SBA and the Commission's auction rules. On
January 26, 2001, the Commission completed the auction of 422 C and F
Broadband PCS licenses in Auction No. 35. Of the 35 winning bidders in
this auction, 29 qualified as small or very small businesses.
4. Description of Projected Reporting, Recordkeeping, and Other
Compliance Requirements for Small Entities
57. As stated, the Commission does not propose any new rules that
would add reporting, recordkeeping, or other compliance requirements.
The Commission proposes only to modify or eliminate certain rules,
thereby eliminating economic burdens for small entities. For example,
the Commission seeks proposals on less costly and more efficient ways
to collect, preserve and maintain carrier records and reports pursuant
to part 42 of its rules. The Commission also seeks to modify or
streamline the procedures for disclosing network changes under part 51
of its rules, as these procedures may have become unnecessarily
complicated in light of carriers' ability to provide notice of changes
and other information via the Internet. In addition, the Commission
seeks comment on whether to continue to require carriers to file
annually FCC Form 395, which is used to collect statistical information
on the racial, ethnic, and gender makeup of a carrier's work force in
nine specific job categories. In this NPRM, we therefore seek comment
on the types of burdens that might be eliminated and encourage
entities, especially small businesses, and to quantify, if possible,
the costs and benefits of the proposals.
5. Steps Taken to Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered
58. The RFA requires an agency to describe any significant
alternatives that it has considered in reaching its proposed approach,
which may include the following four alternatives (among others): (1)
The establishment of differing compliance or reporting requirements or
timetables that take into account the resources available to small
entities; (2) the clarification, consolidation, or simplification of
compliance or reporting requirements under the rule for small entities;
(3) the use of performance, rather than design, standards; and (4) an
exemption from coverage of the rule, or any part thereof, for small
entities.
59. The NPRM seeks comment on proposals to reduce the
administrative burden and cost of compliance for small
telecommunications service providers. The Commission has accepted the
statutory requirement that an alternative be considered when necessary
to protect the interests of small entities. We particularly seek
comment from contributors that are ``small business concerns'' under
the Small Business Act on the proposals contained in the NPRM.
6. Federal Rules that May Duplicate, Overlap, or Conflict with the
Proposed Rules
60. None.
D. Comment Filing Procedures
61. We invite comment on the issues and questions set forth in the
Notice of Proposed Rulemaking and Initial Regulatory Flexibility
Analysis contained herein. Pursuant to applicable procedures set forth
in Sec. Sec. 1.415 and 1.419 of the Commission's rules, interested
parties may file comments on or before April 19, 2004, and reply
comments on or before May 3, 2004. All filings should refer to WC
Docket No. 02-313. Comments may be filed using the Commission's
Electronic Comment Filing System (ECFS) or by filing paper copies.
62. Comments filed through ECFS can be sent as an electronic file
via the Internet to http://www.fcc.gov/e-file/ecfs.html. Generally,
only one copy of an electronic submission must be filed. In completing
the transmittal screen, commenters should include their full name,
Postal Service mailing address, and the applicable docket number, which
in this instance is WC Docket No. 02-313. Parties may also submit an
electronic comment by Internet e-mail. To receive filing instructions
for e-mail comments, commenters should send an e-mail to ecfs@fcc.gov,
and should include the following words in the body of the message: get
form . A sample form and directions will
be sent in reply.
63. Parties who choose to file by paper must file an original and
four copies of each filing. If more than one docket or rulemaking
number appears in the caption of this proceeding, commenters must
submit two additional copies for each additional docket or rulemaking
number. Parties who choose to file by paper are hereby notified that
effective December 18, 2001, the Commission's contractor, Natek, Inc.,
will receive hand-delivered or messenger-delivered paper filings for
the Commission's Secretary at a new location in downtown Washington,
DC. The address is 236 Massachusetts Avenue, NE., Suite 110,
Washington, DC 20002. The filing hours at this location will be 8 a.m.
to 7 p.m. All hand deliveries must be held together with rubber bands
or fasteners. Any envelopes must be disposed of before entering the
building. This facility is the only location where hand-delivered or
messenger-delivered paper filings for the Commission's Secretary will
be accepted. Accordingly, the Commission will no longer accept these
filings at 9300 East Hampton Drive, Capitol Heights, MD 20743. Other
messenger-delivered documents, including documents sent by overnight
mail (other than United States Postal Service (USPS) Express Mail and
Priority Mail), must be addressed to 9300 East Hampton Drive, Capitol
Heights MD 20743. This location will be open 8 a.m. to 5:30 p.m. USPS
first-class mail, Express Mail, and Priority Mail should
[[Page 12822]]
continue to be addressed to the Commission's headquarters at 445 12th
Street, SW., Washington, DC 20554. USPS mail addressed to the
Commission's headquarters actually goes to our Capitol Heights facility
for screening prior to delivery at the Commission.
------------------------------------------------------------------------
If you are sending this type of document It should be addressed for
or using this delivery method delivery to
------------------------------------------------------------------------
Hand-delivered or messenger-delivered 236 Massachusetts Avenue,
paper filings for the Commission's NE., Suite 110, Washington,
Secretary. DC 20002 (8 a.m. to 7 p.m.
e.s.t.)
Other messenger-delivered documents, 9300 East Hampton Drive,
including documents sent by overnight Capitol Heights, MD 20743
mail (other than United States Postal (8 a.m. to 5:30 p.m.)
Service Express Mail and Priority Mail).
United States Postal Service first-class 445 12th Street, SW.,
mail, Express Mail, and Priority Mail. Washington, DC 20554
------------------------------------------------------------------------
All filings must be sent to the Commission's Secretary: Marlene H.
Dortch, Office of the Secretary, Federal Communications Commission, 445
12th Street, SW., Suite TW-A325, Washington, DC 20554.
64. Parties who choose to file by paper should also submit their
comments on diskette to Paul Garnett, Wireline Competition Bureau,
Federal Communications Commission, 445 12th Street, SW., Room 5C-3115
Washington, DC 20554. The submission should be on a 3.5 inch diskette
formatted in an IBM compatible format using Microsoft Word or
compatible software. The diskette should be accompanied by a cover
letter and should be submitted in ``read only'' mode. The diskette
should be clearly labeled with the commenter's name, proceeding
(including the docket number, in this case, WC Docket No. 02-313), type
of pleading (comment or reply comment), date of submission, and the
name of the electronic file on the diskette. The label should also
include the following phrase ``Disk Copy--Not an Original.'' Each
diskette should contain only one party's pleading, preferably in a
single electronic file.
65. Regardless of whether parties choose to file electronically or
by paper, parties must also file one copy of any documents filed in
this docket with the Commission's copy contractor, Qualex
International, Inc, Portals II, 445 12th Street, SW., Room CY-B402,
Washington, DC 20554. Comments and reply comments will be available on
ECFS. Comments and reply comments also will be available for public
inspection during regular business hours in the FCC Reference Center,
Room CY-A257, 445 12th Street, SW., Washington, DC 20554. In addition,
the full text of this document is available for public inspection and
copying during regular business hours at the FCC Reference Information
Center, Portals II, 445 12th Street, SW., Room CY-A257, Washington, DC
20554. This document may also be purchased from the Commission's
duplicating contractor, Qualex International, Portals II, 445 12th
Street, SW., Room CY-B402, Washington, DC 20554, telephone 202-863-
2893, facsimile 202-863-2898, or via e-mail qualexint@aol.com.
66. Comments and reply comments should include a short and concise
summary of the substantive arguments raised in the pleading. Comments
and reply comments also must comply with Sec. 1.49 and all other
applicable sections of the Commission's rules. Parties should include
the name of the filing party and the date of the filing on each page of
their comments and reply comments. All parties are encouraged to
utilize a table of contents, regardless of the length of their
submission. We also strongly encourage parties to track the
organization set forth in the NPRM to facilitate our internal review
process.
67. To request materials in accessible formats for people with
disabilities (braille, large print, electronic files, audio format),
send an e-mail to fcc504@fcc.gov or call the Consumer & Governmental
Affairs Bureau at 202-418-0531 (voice), 202-418-7365 (tty).
IX. Ordering Clauses
68. Pursuant to the authority contained in sections 1, 3, 4(i),
4(j), 201-205, and 403 of the Communications Act of 1934, as amended,
this Notice of Proposed Rulemaking is adopted.
69. The Commission's Consumer and Governmental Affairs Bureau,
Reference Information Center, shall send a copy of this Notice of
Proposed Rulemaking, including the Initial Regulatory Flexibility
Analysis, to the Chief Counsel for Advocacy of the Small Business
Administration.
List of Subjects
47 CFR Part 36
Communications common carrier, Reporting and recordkeeping
requirements, Telephone.
47 CFR Part 51
Communications common carrier, Telecommunications.
47 CFR Part 52
Communications common carrier, Telecommunications, Telephone.
47 CFR Part 53
Communications common carrier, Reporting and recordkeeping
requirements, Telephone.
47 CFR Part 54
Communications common carrier, Libraries, Reporting and
recordkeeping requirements, Schools, Telecommunications, Telephone.
47 CFR Part 63
Communications common carriers, Radio, Reporting and recordkeeping
requirements, Telegraph, Telephone.
47 CFR Part 64
Communications common carriers, Radio, Reporting and recordkeeping
requirements, Telecommunications, Telegraph, Telephone.
47 CFR Part 69
Communications common carriers, Reporting and recordkeeping
requirements, Telephone.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
Proposed Rules
For the reasons discussed in the preamble, the Federal
Communications Commission proposes to amend 47 CFR parts 36, 51, 52,
53, 54, 63, 64 and 69 as follows:
PART 36--JURISDICTIONAL SEPARATIONS PROCEDURES; STANDARD PROCEDURES
FOR SEPARATING TELECOMMUNICATIONS PROPERTY COSTS, REVENUES,
EXPENSES, TAXES AND RESERVES FOR TELECOMMUNICATIONS COMPANIES
1. The authority citation continues to read as follows:
Authority: 47 U.S.C. 151, 154(i) and (j), 205, 221(c), 254, 403,
and 410.
2. Amend Sec. 36.2 by revising paragraphs (b)(3)(ii) and
(b)(3)(iv) to read as follows:
Sec. 36.2 Fundamental principles underlying procedures.
* * * * *
(b) * * *
(3) * * *
(ii) Holding-time-minutes is the basis for measuring the use of
local and toll switching plant.
* * * * *
(iv) Message telecommunications subscriber plant shall be
apportioned on
[[Page 12823]]
the basis of a Gross Allocator which assigns 25 percent to the
interstate jurisdiction and 75 percent to the State jurisdiction.
* * * * *
3. Amend Sec. 36.125 by revising the text of paragraph (f) to read
as follows:
Sec. 36.125 Local switching equipment--Category 3.
* * * * *
(f) Beginning January 1, 1998, for study areas with fewer than
50,000 access lines, Category 3 investment is apportioned to the
interstate jurisdiction by the application of an interstate allocation
factor that is the lesser of either .85 or the sum of the interstate
DEM factor specified in paragraph (a)(5) of this section, and the
difference between the 1996 interstate DEM factor and the 1996
interstate DEM factor multiplied by a weighting factor as determined by
the table below. The Category 3 investment that is not assigned to the
interstate jurisdiction pursuant to this paragraph is assigned to the
state jurisdiction.
* * * * *
4. Amend Sec. 36.126 by revising paragraphs (e)(2) and (e)(3) to
read as follows:
Sec. 36.126 Circuit equipment--Category 4.
* * * * *
(e) * * *
(2) Interexchange Circuit Equipment Used for Wideband Service--
Category 4.22--This category includes the circuit equipment portion of
interexchange channels used for wideband services. The cost of
interexchange circuit equipment in this category is determined
separately for each wideband channel and is segregated between message
and private line services on the basis of the use of the channels
provided. The respective costs are allocated to the appropriate
operation in the same manner as the related interexchange cable and
wire facilities described in Sec. 36.156.
(3) All Other Interexchange Circuit Equipment--Category 4.23--This
category includes the cost of all interexchange circuit equipment not
assigned to Categories 4.21 and 4.22. The cost of interexchange basic
circuit equipment used for the following classes of circuits is
included in this category: Jointly used message circuits, i.e., message
switching plant circuits carrying messages from the state and
interstate operations; circuits used for state private line services.
(i) An average interexchange circuit equipment cost per equivalent
interexchange telephone termination for all circuits is determined and
applied to the equivalent interexchange telephone termination counts of
each of the following classes of circuits: Private Line, State Private
Line, Message. The cost of interstate private line circuits is assigned
directly to the interstate operation. The cost of state private line
circuits is assigned directly to the state operation. The cost of
message circuits is apportioned between the state and interstate
operations on the basis of the relative number of study area
conversation-minutes applicable to such facilities.
(ii) The cost of special circuit equipment is segregated among
telegraph grade private line services and other private line services
based on an analysis of the use of the equipment and in accordance with
Sec. 36.126(b)(4). The special circuit equipment cost assigned to
telegraph grade and other private line services is directly assigned to
the appropriate operations.
* * * * *
5. Amend Sec. 36.142 by revising paragraph (a) to read as follows:
Sec. 36.142 Categories and apportionment procedures.
(a) Other Information Origination/Termination Equipment--Category
1. This category includes the cost of other information origination/
termination equipment not assigned to Category 2. The costs of other
information origination/termination equipment are allocated pursuant to
the factor that is used to subcategory 1.3 Exchange Line C&WF.
* * * * *
6. Amend Sec. 36.152 by revising paragraphs (a)(1) and (a)(2) to
read as follows:
Sec. 36.152 Categories of Cable and Wire Facilities (C&WF).
(a) * * *
(1) Exchange Line C&WF Excluding Wideband--Category 1--This
category includes C&W facilities between local central offices and
subscriber premises used for message telephone, private line, local
channels, and for circuits between control terminals and radio stations
providing very high frequency maritime service or urban or highway
mobile service.
(2) Wideband and Exchange Trunk C&WF--Category 2--This category
includes all wideband, including Exchange Line Wideband and C&WF
between local central offices and Wideband facilities. It also includes
C&WF between central offices or other switching points used by any
common carrier for interlocal trunks wholly within an exchange or
metropolitan service area, interlocal trunks with one or both terminals
outside a metropolitan service area carrying some exchange traffic,
toll connecting trunks, tandem trunks principally carrying exchange
traffic, the exchange trunk portion of WATS access lines, the exchange
portion of private line local channels, and the exchange trunk portion
of circuits between control terminals and radio stations providing very
high frequency maritime service or urban or highway mobile service.
* * * * *
7. Amend Sec. 36.154 by revising paragraph (c) and by removing
paragraphs (d), (e), and (f) and by redesignating paragraph (g) as
paragraph (d) to read as follows:
Sec. 36.154 Exchange Line Cable and Wire Facilities (C&WF)--Category
1--apportionment procedures.
* * * * *
(c) Effective January 1, 1986, 25 percent of the costs assigned to
subcategory 1.3 shall be allocated to the interstate jurisdiction.
* * * * *
8. Amend Sec. 36.156 by revising paragraph (b) to read as follows:
Sec. 36.156 Interexchange Cable and Wire Facilities (C&WF)--Category
3--apportionment procedures.
* * * * *
(b) The cost of C&WF applicable to this category shall be directly
assigned were feasible. If direct assignment is not feasible, cost
shall be apportioned between the state and interstate jurisdiction on
the basis of conversation-minute kilometers as applied to toll message
circuits, etc.
* * * * *
9. Amend Sec. 36.212 by revising paragraph (c) to read as follows:
Sec. 36.212 Basic local services revenue--Account 5000.
* * * * *
(c) Wideband Message Service revenues from monthly and
miscellaneous charges, service connections, move and change charges,
are apportioned between state and interstate operations on the basis of
the relative number of minutes-of-use in the study area. Effective July
1, 2001, through June 30, 2006, all study areas shall apportion
Wideband Message Service revenues among the jurisdictions using the
relative number of minutes of use for the twelve-month period ending
December 31, 2000.
* * * * *
10. Amend Sec. 36.214 by revising paragraph (a) to read as
follows:
[[Page 12824]]
Sec. 36.214 Long distance message revenue--Account 5100.
(a) Wideband message service revenues from monthly and
miscellaneous charges, service connections, move and change charges,
are apportioned between state and interstate operations on the basis of
the relative number of minutes-of-use in the study area. Effective July
1, 2001, through June 30, 2006, all study areas shall apportion
Wideband Message Service revenues among the jurisdictions using the
relative number of minutes of use for the twelve-month period ending
December 31, 2000.
* * * * *
Sec. 36.375 [Amended]
11. Amend Sec. 36.375 by removing paragraph (b)(2) and
redesignating paragraphs (b)(3) through (b)(6) as paragraphs (b)(2)
through (b)(5).
12. Amend Sec. 36.377 by revising paragraphs (a)(1) introductory
text, (a)(2) introductory text, (a)(2)(vii), and (a)(7) introductory
text, by removing paragraphs (a)(1)(viii) and (a)(2)(vi), by
redesignating paragraph (a)(1)(ix) as paragraph (a)(1)(viii) and
redesignating paragraph (a)(2)(vii) as paragraph (a)(2)(vi) to read as
follows:
Sec. 36.377 Category 1--Local business office expense.
(a) * * *
(1) End-user service order processing includes expenses related to
the receipt and processing of end users' orders for service and
inquiries concerning service. This subcategory does not include any
service order processing expenses for services provided to the
interexchange carriers. End user service order processing expenses are
first segregated into the following subcategories based on the relative
number of actual contacts which are weighted, if appropriate, to
reflect differences in the average work time per contact: Local service
order processing; presubscription; directory advertising; State private
line and special access; interstate private line and special access;
other State message toll including WATS; other interstate message toll
including WATS.
* * * * *
(2) End User payment and collection include expenses incurred in
relation to the payment and collection of amounts billed to end users.
It also includes commissions paid to payment agencies (which receive
payment on customer accounts) and collection agencies. This category
does not include any payment or collection expenses for services
provided to interexchange carriers. End user payment and collection
expenses are first segregated into the following subcategories based on
relative total state and interstate billed revenues (excluding revenues
billed to interexchange carriers and/or revenues deposited in coin
boxes) for services for which end user payment and collection is
provided; State private line and special access; interstate private
line and special access; State message toll including WATS; interstate
message toll including WATS, and interstate subscriber line charge;
local, including directory advertising.
* * * * *
(vii) Effective July 1, 2001, through June 30, 2006, study areas
subject to price cap regulation, pursuant to Sec. 61.41 of this
chapter, shall assign the balance of Account 6620--Services to the
subcategories, as specified in Sec. Sec. 36.377 (a)(3)(i) through
36.377(a)(3)(vi), based on the relative percentage assignment of the
balance of Account 6620 to these subcategories during the twelve-month
period ending December 31, 2000. Effective July 1, 2001, through June
30, 2006, all study areas shall apportion TWX billing inquiry expense,
as specified in Sec. 36.377(a)(3)(v) among the jurisdictions using
relative billed TWX revenues for the twelve-month period ending
December 31, 2000. All other subcategories of End User payment and
collection expense, as specified in Sec. Sec. 36.377(a)(2)(i) through
36.377(a)(2)(v), shall be directly assigned.
* * * * *
(7) Coin collection and administration includes expenses for the
collection and counting of money deposited in public or semi-public
phones. It also includes expenses incurred for required travel, coin
security, checking the serviceability of public or semi-public
telephones, and related functions. These expenses are apportioned
between the State and interstate jurisdictions in proportion to the
relative State and interstate revenues deposited in the public and
semi-public telephones.
* * * * *
13. Amend Sec. 36.631 by removing paragraphs (a) and (b), by
redesignating paragraphs (c) through (e) as paragraphs (a) through (c),
and by revising newly redesignated paragraph (b) introductory text to
read as follows:
Sec. 36.631 Expense adjustment.
* * * * *
(b) Beginning January 1, 1998, for study areas reporting more than
200,000 working loops pursuant to Sec. 36.611(h), the expense
adjustment (additional interstate expense allocation) is equal to the
sum of paragraphs (b)(1) through (b)(4) of this section. After January
1, 2000, the expense adjustment (additional interstate expense
allocation) for non-rural telephone companies serving study areas
reporting more than 200,000 working loops pursuant to Sec. 36.611(h)
shall be calculated pursuant to Sec. 54.309 of this chapter or Sec.
54.311 of this chapter (which relies on this part), whichever is
applicable.
* * * * *
Sec. 36.641 [Removed]
14. Remove Sec. 36.641.
Appendix to Part 36--[Amended]
15. In the Appendix to Part 36-Glossary, remove the following terms
and their definitions:
* * * * *
TWX
TWX Connection
TWX Connection-Minute-Kilometers
TWX Switching Plant Trunks
* * * * *
PART 51--INTERCONNECTION
16. The authority citation continues to read as follows:
Authority: Sections 1-5, 7, 201-05, 207-09, 218, 225-27, 251-54,
256, 271, 303(r), 332, 48 Stat. 1070, as amended, 1077; 47 U.S.C.
151-55, 157, 201-05, 207-09, 218, 225-27, 251-54, 271, 303(r) 332,
47 U.S.C. note unless otherwise noted.
Sec. 51.211 [Removed]
17. Remove Sec. 51.211.
Sec. 51.213 [Amended]
18. Amend Sec. 51.213 by removing paragraphs (c) and (d).
Sec. 51.329 [Amended]
19. Amend Sec. 51.329 by removing paragraph (c)(3).
Sec. 51.515 [Amended]
20. Amend Sec. 51.515 by removing paragraphs (b) and (c) and by
redesignating paragraph (d) as paragraph (b).
PART 52--NUMBERING
21. The authority citation continues to read as follows:
Authority: Sections 1, 2, 4, 5, 48 Stat. 1066, as amended; 47
U.S.C. 151, 152, 154, 155 unless otherwise noted. Interpret or apply
secs. 3, 4, 201-05, 207-09, 218, 225-7, 251-2, 271 and 332, 48 Stat.
1070, as amended, 1077; 47 U.S.C. 153, 154, 201-05, 207-09, 218,
225-7, 251-2, 271 and 332 unless otherwise noted.
22. Amend Sec. 52.5 by revising paragraph (c) to read as follows:
[[Page 12825]]
Sec. 52.5 Definitions.
* * * * *
(c) North American Numbering Plan (NANP). The ``North American
Numbering Plan'' is the basic numbering scheme for the
telecommunications networks located in American Samoa, Anguilla,
Antigua, Bahamas, Barbados, Bermuda, British Virgin Islands, Canada,
Cayman Islands, Dominican Republic, Grenada, Jamaica, Montserrat, St.
Kitts & Nevis, St. Lucia, St. Vincent, Turks & Caicos, Trinidad &
Tobago, and the United states (including Puerto Rico, the U.S. Virgin
Islands, Guam and the Commonwealth of the Northern Mariana Islands).
* * * * *
Sec. 52.11 [Amended]
23. Amend Sec. 52.11 by removing paragraph (d).
24. Amend Sec. 52.13 by revising paragraphs (b) introductory text
and (c)(4) to read as follows:
Sec. 52.13 North American Numbering Plan Administrator.
* * * * *
(b) The NANPA shall administer the numbering resources identified
in paragraph (d) of this section. It shall assign and administer NANP
resources in an efficient, effective, fair, unbiased, and non-
discriminatory manner consistent with industry-developed guidelines and
Commission regulations. It shall support the Commission's efforts to
accommodate current and future numbering needs. It shall perform
additional functions, including but not limited to:
* * * * *
(c) * * *
(4) Manage projects such as Numbering Plan Area (NPA) relief (area
code relief) planning, Numbering Resource Utilization and Forecast
(NRUF) data collection, and NPA and NANP exhaust projection;
* * * * *
25. Amend Sec. 52.15 by removing paragraphs (c) and (e), by
redesignating paragraphs (d) through (k) as paragraphs (c) through (i),
and by revising paragraph (b)(3) and newly redesignated paragraph (d)
to read as follows:
* * * * *
(b) * * *
(3) Conducting the Numbering Resource Utilization and Forecast
(NRUF) data collection;
* * * * *
(d) Central Office (CO) Code Administration functional
requirements. The NANPA shall manage the United States CO code
numbering resource, including CO code request processing, NPA code
relief and jeopardy planning, and industry notification functions. The
NANPA shall perform its CO code administration functions in accordance
with the published industry numbering resource administration
guidelines and Commission orders and regulations of 47 CFR chapter I.
* * * * *
Sec. 52.23 [Amended]
26. Amend Sec. 52.23 by removing paragraph (g).
* * * * *
Sec. 52.27 [Removed]
27. Remove Sec. 52.27.
Sec. 52.29 [Removed]
28. Remove Sec. 52.29.
Sec. 52.31 [Amended]
29. Amend Sec. 52.31 by removing paragraph (c).
PART 53--SPECIAL PROVISIONS CONCERNING BELL OPERATING COMPANIES
30. The authority citation continues to read as follows:
Authority: Sections 1-5, 7, 201-05, 218, 251, 253, 271-75, 48
Stat. 1070, as amended, 1077; 47 U.S.C. 151-55 ,157, 201-05, 218,
251, 253, 271-75, unless otherwise noted.
Sec. 53.101 [Removed]
31. Remove Sec. 53.101.
PART 54--UNIVERSAL SERVICE
32. The authority citation continues to read as follows:
Authority: 47 U.S.C. 1, 4(i), 201, 205, 214, and 254 unless
otherwise noted.
Sec. 54.201 [Amended]
33. Amend Sec. 54.201 by removing paragraph (a)(2), by
redesignating paragraphs (a)(3) and (a)(4) as paragraphs (a)(2) through
(a)(3).
Sec. 54.313 [Amended]
34. Amend Sec. 54.313 by revising paragraph (d) to read as
follows:
Sec. 54.313 State certification of support for non-rural carriers.
* * * * *
(d) Filing deadlines. In order for a non-rural incumbent local
exchange carrier in a particular state, and/or an eligible
telecommunications carrier serving lines in the service area of a non-
rural incumbent local exchange carrier, to receive high-cost support,
the State must file an annual certification, as described in paragraph
(c) of this section with both the Administrator and the Commission.
Support shall be provided in accordance with the following schedule.
* * * * *
35. Amend Sec. 54.604 by revising paragraph (a) to read as
follows:
Sec. 54.604 Existing contracts.
(a) A signed contract for services eligible for support pursuant to
this subpart between an eligible health care provider as defined under
Sec. 54.601 and a telecommunications carrier shall be exempt from the
competitive bid requirements set forth in Sec. 54.603(a) if its signed
on or before July 10, 1997.
* * * * *
36. Amend Sec. 54.623 by revising paragraph (c) (4) to read as
follows:
Sec. 54.623 Caps.
* * * * *
(c) * * *
(4) The Administrator may implement such additional filing periods
as it deems necessary. Applications filed by health care providers
within any such additional filing period shall be treated as if they
were simultaneously received.
* * * * *
PART 63--EXTENSION OF LINES, NEW LINES, AND DISCONTINUANCE,
REDUCTION, OUTAGE AND IMPAIRMENT OF SERVICE BY COMMON CARRIERS; AND
GRANTS OF RECOGNIZED PRIVATE OPERATING AGENCY STATUS
37. The authority citation continues to read as follows:
Authority: Sections 1, 4(i), 4(j), 10,11, 201-205, 214, 218, 403
and 651 of the Communications Act of 1934, as amended, 47 U.S.C.
151, 154(i), 154(j), 160, 201-205, 214, 218, 403, and 571, unless
otherwise noted.
38. Amend Sec. 63.61 by revising the first paragraph to read as
follows:
Sec. 63.61 Applicability.
Any carrier subject to the provisions of section 214 of the
Communications Act of 1934, as amended, except any non-dominant carrier
as this term is defined in Sec. 61.3(y) of this chapter, proposing to
discontinue, reduce, or impair interstate or foreign telephone or
telegraph service to a community, or a part of a community, shall
request authority therefore by formal application or informal request
as specified in the pertinent sections of this part: Provided, however,
That where service is expanded on an experimental basis for a temporary
period of not more than 6 months, no application shall be required to
reduce service to its status prior to such expansion but a written
notice shall be
[[Page 12826]]
filed with the Commission within 10 days of the reduction showing (a)
date on which, places at which, and extent to which service was
expanded and (b) date on which, places at which, and extent to which
such expansion of service was discontinued: And provided further, That
a licensee of a radio station who has filed an application for
authority to discontinue service provided by such station shall during
the period that such application is pending before the Commission,
continue to file appropriate applications as may be necessary for
extension or renewal of station license in order to provide legal
authorization for such station to continue in operation pending final
action on the application for discontinuance of service. Procedures for
discontinuance, reduction or impairment of service by dominant and non-
dominant, domestic carriers are in Sec. 63.71 of this chapter.
Procedures for discontinuance, reduction or impairment of international
services are in Sec. 63.19 of this chapter.
* * * * *
39. Amend Sec. 63.71 by revising paragraphs (a)(5)(i) and
(a)(5)(ii) and by adding paragraph (d) to read as follows:
Sec. 63.71 Procedures for discontinuance, reduction or impairment of
service by domestic carriers
* * * * *
(a) * * *
(5) * * *
(i) If the carrier is non-dominant with respect to the service
being discontinued, reduced or impaired, the notice shall state: The
FCC will normally authorize this proposed discontinuance of service (or
reduction or impairment) unless it is shown that customers would be
unable to receive service or a reasonable substitute from another
carrier or that the public convenience and necessity is otherwise
adversely affected. If you wish to object, you should file your
comments as soon as possible, but no later than 15 days after the
Commission releases public notice of the proposed discontinuance.
Address them to the Federal Communications Commission, Wireline
Competition Bureau, Competition Policy Division, Washington, DC 20054,
and include in your comments a reference to the Sec. 63.71 Application
of (carrier's name). Comments should include specific information about
the impact of this proposed discontinuance (or reduction or impairment)
upon you or your company, including any inability to acquire reasonable
substitute service.
(ii) If the carrier is dominant with respect to the service being
discontinued, reduced or impaired, the notice shall state: The FCC will
normally authorize this proposed discontinuance of service (or
reduction or impairment) unless it is shown that customers would be
unable to receive service or a reasonable substitute from another
carrier or that the public convenience and necessity is otherwise
adversely affected. If you wish to object, you should file your
comments as soon as possible, but no later than 30 days after the
Commission releases public notice of the proposed discontinuance.
Address them to the Federal Communications Commission, Wireline
Competition Bureau, Competition Policy Division, Washington, DC 20054,
and include in your comments a reference to the Sec. 63.71 Application
of (carrier's name). Comments should include specific information about
the impact of this proposed discontinuance (or reduction or impairment)
upon you or your company, including any inability to acquire reasonable
substitute service.
* * * * *
(d) Procedures for discontinuance, reduction or impairment of
international services are in Sec. 63.19 of this chapter.
PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS
40. The authority citation continues to read as follows:
Authority: 47 U.S.C. 154, 254(k) and 403(b)(2)(B), (c), Pub. L.
104, 110 Stat. 56. Interpret or apply 47 U.S.C. 201, 218, 225, 226,
228, and 254(k) unless otherwise noted.
41. Amend Sec. 64.1903 by revising paragraph (a) introductory text
and by removing paragraph (c) to read as follows:
Sec. 64.1903 Obligations of all incumbent independent local exchange
carriers.
(a) An incumbent independent LEC providing in-region, interstate,
interexchange services or in-region international interexchange
services shall provide such services through an affiliate that
satisfies the following requirements:
* * * * *
PART 69--ACCESS CHARGES
42. The authority citation for part 69 continues to read as
follows:
Authority: 47 U.S.C. 154, 201, 202, 203, 205, 218, 220, 254,
403.
Sec. 69.116 [Removed]
43. Remove Sec. 69.116.
Sec. 69.117 [Removed]
44. Remove Sec. 69.117.
Sec. 69.126 [Removed]
45. Remove Sec. 69.126.
Sec. 69.127 [Removed]
46. Remove Sec. 69.127.
Sec. 69.612 [Removed]
47. Remove Sec. 69.612.
[FR Doc. 04-5657 Filed 3-17-04; 8:45 am]
BILLING CODE 6712-01-P