[Federal Register Volume 59, Number 53 (Friday, March 18, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6273]


[[Page Unknown]]

[Federal Register: March 18, 1994]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[CC Docket No. 94-1 FCC 94-10]

 

Comprehensive Review of the Performance of LECs Under Price Cap 
Regulation

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission adopted a Notice of Proposed Rulemaking 
initiating a comprehensive review of the performance of local exchange 
carriers under price cap regulation. The Commission pledged to 
undertake this fourth-year review when it adopted price cap regulation 
for the Regional Bell Operating Companies, GTE, and electing local 
exchange carriers (LECs). The document meets this pledge and identifies 
and solicits comments on three sets of issues.

DATES: Comments must be filed on or before April 18, 1994, and reply 
comments on or before May 17, 1994.

ADDRESSES: Federal Communications Commission, 1919 M Street, NW., 
Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT:
Joanne Wall, Tel. (202) 632-6917.

SUPPLEMENTARY INFORMATION:

Paperwork Reduction

    This proposal contained herein has been analyzed with respect to 
the Paperwork Reduction Act of 1980 and found not to impose new or 
modified information collection requirements on the public.
    On January 19, 1994, the Commission adopted a Notice of Proposed 
Rulemaking (NPRM) initiating a comprehensive review of the performance 
of LECs under price cap regulation. Price cap regulation for the LECs 
became effective on January 1, 1991, and the NPRM meets a Commission 
pledge to review the plan during its fourth year of operation. The 
Commission pledged to undertake this review when it adopted price cap 
regulation for the RBOCs, GTE, and electing LECs.
    Under LEC price cap regulation, the LECs' interstate services are 
grouped within baskets. Rates within each basket are capped on a 
formula that limits maximum rate changes. This formula produces the 
Price Cap Index (PCI) for the basket. Within each basket, rate changes 
in any one year are also limited by rate bands.
    The NPRM presents data indicating that access rates have declined, 
service quality remains the same as before price caps, and earnings 
have been higher than under rate of return regulation. The basic 
purpose of the review will be to consider whether the plan should be 
revised to better serve the goals of the Communications Act and the 
public interest. The NPRM identifies and solicits comments on three 
sets of issues.
    First, the NPRM requests comment on a set of general issues 
addressing whether the goals of price caps should be refined to assure 
that LEC price cap regulation facilitates the deployment of the 
facilities and services consumers and businesses will need in the 
future. Second, the NPRM identifies a set of issues raising questions 
of whether to revise the current plan to improve its performance or to 
adjust the plan in response to changes in technology, regulation, and 
the market in the near term. The third set of issues relates to a 
possible transition from the baseline price cap plan toward the 
relaxation of regulatory oversight and rate regulation as competition 
develops in the market for local exchange access services.
    The Common Carrier Bureau has established a computerized data base 
for use in the LEC price cap performance review. This data base is 
located in the Industry Analysis Division's ``FCC-State Link Bulletin 
Board System'' (RBBS-PC), in a directory entitled ``PRICECAP.'' (See, 
FCC Public Notice, DA 94-219, rel. March 8, 1994.)
    This 24-hour bulletin board is restricted to FCC use from 9:30 
a.m.-10:30 a.m. and 1 p.m.-1:30 p.m. EST, Monday through Sunday. From 8 
a.m.-9:30 a.m. and 10:30 a.m. to 1 p.m. EST, Monday through Sunday, 
regulatory commissions and other government agencies are priority users 
and, therefore, the system is not available to other users during those 
hours. The board is available to the public (as well as government 
users) from 1:30 p.m.-8 a.m. EST, Monday through Sunday.
    This computerized bulletin board can be accessed by using a 
computer and modem and calling (202) 632-1361. Users can transfer 
information on the use of this board to their computers by selecting 
first, the ``FILE'' command from the ``MAIN'' menu, second, the 
``DOWNLOAD'' command from the ``FILE'' menu and third, the ``RBBS-
PC.REF'' file in the ``BBS'' directory of the bulletin board. Users 
should refer to their communications package for instructions on how to 
transfer the file to the users' computer system. Information on various 
aspects of this board can be found by selecting first, the ``BULLETIN'' 
command from the ``MAIN'' menu and, second, the ``INFO'' bulletin from 
the list of bulletins. In-depth information about commands, menus, and 
special topics can be found by selecting the ``HELP'' command, which is 
available in all menus. Specific questions can be sent to the System 
Operator by first, selecting the ``COMMENT TO SYSOP'' command from the 
``MAIN'' menu, second, typing in a message containing the question and 
third, selecting the ``SAVE MESSAGE'' command. The System Operator's 
response to these questions can be retrieved by selecting the ``READ 
MESSAGE'' command from the ``MAIN'' menu.
    As noted in the NPRM, the Commission is using this proceeding as a 
test of methods to improve the ability of the Commission and the public 
to review and evaluate data and information through the use of 
computerized data bases. We therefore encourage all commenters to 
submit, in addition to the required paper copies (see NPRM at para. 
107), a copy of their comments and reply comments on IBM-PC compatible 
diskettes to: (1) The Secretary, Federal Communications Commission, 
1919 M St., NW., Washington, DC 20554 and (2) the Commission's copy 
contractor, International Transcription Services, Inc., Room 246, 1919 
M Street, NW., Washington, DC 20554, Attn. Wilbur Thomas. Each diskette 
submitted to the Office of the Secretary should be labeled CC Docket 
No. 94-1, Attn. Adrianne Brent, Industry Analysis Division. All 
diskettes should be submitted with text files in two formats, one 
compatible with WordPerfect 5.1 or 4.2 and one in ASCII, and with 
spreadsheets in a Lotus 1-2-3 WK1 or WK3 file, so that they may be 
included in the data base. All ex parte statements and replies to ex 
parte statements should be filed in this same manner.
    In the NPRM, the Commission identified a number of issues for 
comment. Each issue is categorized as a ``General,'' ``Baseline,'' or 
``Transition'' issue. In addition, each issue is assigned a number, and 
some of the issues also are assigned a letter. For example, the first 
issue identified for comment in the NPRM is ``General Issue 1''; the 
third issue identified for comment is ``Baseline Issue 1a''; the last 
issue identified for comment is ``Transition Issue 6.'' In responding 
to an issue identified for comment in the NPRM, commenters should 
specifically reference the category, number, and where applicable, the 
letter that corresponds to the issue. Further, the category, number, 
and letter of the issue should precede the corresponding comments. 
Comments filed in this format should improve the Commission and the 
public's ability to review and evaluate data and information submitted 
in this docket.
    The NPRM provides that comments in this docket are due on April 18, 
1994, and replies are due on May 17, 1994. In order to facilitate the 
creation of useful data bases in this and other Commission proceedings, 
we encourage comments and suggestions for improvements to these 
procedures.
    For further information regarding the operation of the bulletin 
board, call Adrianne Brent or Jonathan Kraushaar, Industry Analysis 
Division, (202) 632-0745. For further information about the NPRM, call 
Joanne Wall, Tariff Division, (202) 632-6917.
    The full text of this proposal may also be purchased from the 
Commission's copy contractor, International Transcription Services 
(ITS), 2100 M Street, NW., suite 140, Washington, DC 20037, Tel. (202) 
875-3800.

Regulatory Flexibility Act

    We certify that the Regulatory Flexibility Act of 1980 does not 
apply to this rulemaking proceeding because if the proposal rule 
amendments are promulgated, there will not be a significant economic 
impact on a substantial number of small business entities, as defined 
by Section 601(3) of the Regulatory Flexibility Act. Carriers subject 
to price cap regulation for local exchange access services affected by 
the rule amendments under consideration generally are large 
corporations or affiliates of such corporations. The Secretary shall 
send a copy of this Notice of Proposed Rule Making, including the 
certification, to the Chief, Counsel for Advocacy of the Small Business 
Administration in accordance with paragraph 603(a) of the Regulatory 
Flexibility Act, Pub. L. No. 96-354, 94 Stat. 1164, 5 U.S.C. Section 
601 et seq. (1981).

Ex Parte

    This is a non-restricted notice and comment rulemaking proceeding. 
Ex parte presentations are permitted, except during the Sunshine Agenda 
period, provided they are disclosed as provided in Commission rules. 
See generally 47 CFR 1.1202, 1.1203, and 1.1206(a).

List of Subjects in 47 CFR Part 1

    Administrative practice and procedure, Communications common 
carriers, Reporting and recordkeeping requirements, Telecommunications.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 94-6273 Filed 3-17-94; 8:45 am]
BILLING CODE 6712-01-M