[Federal Register Volume 59, Number 77 (Thursday, April 21, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-9692]


[[Page Unknown]]

[Federal Register: April 21, 1994]


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Part VIII





Federal Communications Commission





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47 CFR Part 64




Customer Proprietary Network Information Requirements; Final Rule
FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 64

[CC Dockets No. 90-623 and 92-256; FCC 94-63]

 
Customer Proprietary Network Information Requirements

agency: Federal Communications Commission.

action: Request for comments.

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summary: The Commission has in place rules that govern the Bell 
Operating Companies (BOCs) and GTE Corporation's use of customer 
proprietary network information (CPNI) in marketing enhanced services 
and customer premises equipment (CPE). The Commission seeks comment on 
customers' CPNI related privacy expectations, and whether any changes 
in the rules are required to balance customers privacy interests, 
competitive equity and efficiency. The Commission seeks comment on 
whether the CPNI rules should apply to local exchange carriers other 
than GTE and the BOCs and whether any changes in the CPNI requirements 
recommends by parties should also apply to the provision of CPE.

comment dates: Comments due by April 11, 1994,\1\ reply comments by May 
2, 1994.

    \1\Note: See extension of time published elsewhere in this 
issue.
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addresses: Federal Communications Commission, 1919 M Street, NW., 
Washington, DC 20554.

for further information contact: Rose Crellin, Policy and Program 
Planning Division, Common Carrier Bureau (202) 632-1292.

SUPPLEMENTARY INFORMATION:

    Released: March 10, 1994.

    Customer proprietary network information, or CPNI, encompasses any 
information about customers' network services and their use of those 
services that a telephone company possesses because it provides those 
network services.\1\ The Commission has in place rules that govern the 
Bell Operating Companies' (BOCs) use of CPNI in marketing enhanced 
services and customer premises equipment (CPE). These CPNI rules for 
enhanced services are the subject of reconsideration petitions in the 
Computer III Remand Order proceeding, CC Docket No. 90-623. In this 
public notice, we seek comment on customers' CPNI-related privacy 
expectations, and whether any changes in our rules are required to 
achieve the best balance between customer's privacy interests, 
competitive equity, and efficiency.
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    \1\See Filing and Review of Open Network Architecture Plans, 4 
FCC Rcd 1, 215 (1988) (54 FR 3453, Jan. 24, 1989).
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    Under the current rules, any customer can request that its CPNI be 
withheld from the BOCs' enhanced services and CPE marketing personnel, 
although such personnel are generally allowed to make use of CPNI 
without prior customer authorization. Prior authorization is required 
only before BOC enhanced services marketing personnel are given access 
to the CPNI of customers with more than twenty lines. Third parties, 
such as independent enhanced services providers, must obtain advance 
authorization from the customer in order to obtain access to CPNI. The 
Commission's rules also require that the BOCs provide an annual written 
notice of CPNI rights to multiline business customers.\2\ At present 
these rules do not apply to independent telephone companies, but the 
Commission has decided to apply them to GTE in its provision of 
enhanced services.\3\
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    \2\See Computer III Remand Proceedings: Bell Operating Company 
Safeguards and Tier 1 Local Exchange Company Safeguards, CC Docket 
No. 90-623, 6 FCC Rcd 7571, 7605-14 (1991) (57 FR 4373, Feb. 5, 
1992) (Computer III Remand Order); Furnishing of Customer Premises 
Equipment by the Bell Operating Telephone Companies and the 
Independent Telephone Companies, CC Docket No. 86-79, 2 FCC Rcd 143, 
152-153 (1987) (52 FR 2226, Jan. 21, 1987).
    \3\In the Matter of Application of Open Network Architecture and 
Nondiscrimination Safeguards to GTE Corporation, Report and Order, 
CC Docket No. 92-256 (adopted March 8, 1994).
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    The CPNI rules, developed and refined over a period of several 
years, are designed to balance considerations of customer privacy, 
efficiency, and competitive equity. In the past, the Commission has 
concluded that customers' expectations of privacy could be met without 
a notification obligation or a prior authorization requirement for 
internal BOC use of residential and small business customers' CPNI.\4\ 
In the most recent order addressing CPNI, the Commission concluded that 
a prior authorization rule would as a practical matter deny to all but 
the largest business customers the one-stop-shopping benefits of 
integrated marketing of basic and enhanced services by BOCs.\5\ The 
Commission also concluded that to the extent that access to CPNI is 
limited to employees of a single integrated company, this did not 
generally raise significant privacy concerns.\6\ The Commission 
reaffirmed that, although privacy issues are raised by disclosure of 
CPNI to third parties outside the BOC, the CPNI rules have always 
protected against such disclosure.\7\
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    \4\See e.g., Amendment of Section 64.502 of the Commission's 
Rules and Regulations (Third Computer Inquiry), CC Docket No. 85-
229, 2 FCC Rcd 3035,  164 (1987) (52 Rule 21954, June 10, 1987) 
(notification requirement limited to multiline business customers); 
see also Computer III Remand Order 6 FCC Rcd 7571, n. 159 (1991) (57 
FR 4373, Feb. 5, 1992) (prior authorization required for customers 
with more than twenty lines; more extensive prior authorization 
requirement found not necessary to protect customers' privacy 
interests).
    \5\Computer III Remand Order at 7610 and n.155.
    \6\The Commission's CPNI rules allow the BOCs to provide CPE and 
enhanced services under various forms of business organization. BOCs 
may utilize customer CPNI to jointly market enhanced services and 
CPE with these forms of business organization, consistent with other 
requirements of the Commission's CPE, ONA, and CPNI rules. Computer 
III Phase I Further Reconsideration Order, 3 FCC Rcd 1135, 1139 
(1988) at para. 33 (53 FR 8630, Mar. 16, 1988).
    \7\Id. at 7612, n.159.
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    In recent months, however, local telephone companies have planned 
and entered into a number of alliances, acquisitions, and mergers with 
non-telephone company partners. In this changing environment, access to 
CPNI among affiliated companies may raise additional privacy concerns. 
In recognition of these changes, we now seek further comment from the 
public on whether the existing CPNI safeguards will continue in the 
future to strike the best balance between customers' privacy interests, 
competitive equity, and efficiency. In assessing the CPNI rules that 
best achieve this balance, parties should comment specifically on the 
issue of residential and small business customers' CPNI-related privacy 
expectations, and on whether the rules should apply to LECs other than 
the BOCs and GTE. In addition, parties recommending a change in the 
CPNI rules governing the provision of enhanced services should discuss 
whether their proposed rules should also apply to the provision of CPE.
    Interested parties are to file comments by April 11, 1994 and reply 
comments by May 2, 1994 with the Secretary, FCC, 1919 M Street, NW., 
Washington, DC 20554. A copy should also be sent to Rose M. Crellin, 
Common Carrier Bureau, FCC, room 544, 1919 M Street, NW., Washington, 
DC 20554, and to the Commission's copy contractor, International 
Transcription Service, Inc., 2100 M Street, NW., suite 140, Washington, 
DC 20037.
    For further information, contact Rose M. Crellin, Policy and 
Program Planning Division of the Common Carrier Bureau, at (202) 632-
1292).
    Action by the Commission on March 9, 1994.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 94-9692 Filed 4-20-94; 8:45 am]
BILLING CODE 6712-01-M