[Federal Register Volume 60, Number 183 (Thursday, September 21, 1995)]
[Proposed Rules]
[Pages 48957-48959]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-23406]



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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 64

[CC Docket No. 91-35; FCC 95-374]


Operator Service Access and Payphone Compensation

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: The Commission adopted a Notice of Proposed Rulemaking 
(``Notice'') seeking comment on tentative proposals for implementing a 
per-call system of compensation for the largest operator services 
providers 

[[Page 48958]]
(``OSPs''), in lieu of the current flat-rate compensation system. Under 
the Commission's current rules, certain OSPs pay competitive payphone 
owners (``PPOs'') a flat-rate of $6 per payphone per month for 
originating interstate access code calls. An ``access code'' is ``a 
sequence of numbers that, when dialed, connects the caller to the OSP 
associated with that sequence, as opposed to the OSP presubscribed to 
the originating line.'' In particular, this Notice seeks comment on how 
individual access calls could be tracked and the appropriate per-call 
compensation amount.

DATES: Comments must be received on or before October 10, 1995; replies 
must be received on or before October 31, 1995.

ADDRESSES: Comments and replies must be filed with the Office of the 
Secretary, Federal Communications Commission, 1919 M Street, NW., 
Washington, DC 20554; one copy shall also be filed with the 
Commission's contractor, International Transcription Services, Inc. 
(ITS, Inc.) 2100 M Street, NW., Suite 140, Washington, DC 20037 (202-
857-3800). The complete text of this Notice is available for inspection 
and copying during normal business hours in the FCC Reference Center, 
1919 M Street, NW., Room 239, Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT:
Michael Carowitz, 202-418-0960, Enforcement Division, Common Carrier 
Bureau.

SUPPLEMENTARY INFORMATION: 

Synopsis of Notice

1. Ability of IXCs to Track Interstate Access Code Calls

    The Commission believes that tracking 1-800 and 1OXXX access code 
calls through the use of automatic number identification (ANI) and the 
special billing treatment ``07'' code would provide OSPs with a means 
of paying compensation to PPOs on a per-call basis. Because this 
solution to the problem of tracking access code calls builds on an 
OSP's existing capabilities, we believe that it would be relatively 
easy and inexpensive to administer for those OSPs that receive a large 
number of access code calls. The Commission notes that AT&T and Sprint 
have already agreed to meet their compensation obligations through this 
method.
    According to data submitted by the American Public Communications 
Council (``APCC''), the volume of 1-950 access code calls that cannot 
be tracked directly does not appear to be so significant as to justify 
rejection of a per-call compensation mechanism. The Commission 
tentatively concludes that it would be reasonable to require OSPs that 
utilize 1-950 access to rely upon a usage-based surrogate to determine 
their per-call compensation obligations. The Commission also 
tentatively finds that such a surrogate could be based on the ratio of 
1-950 access code calls to the total access code calls received by 
OSPs. The Commission tentatively concludes that the ratios set forth by 
APCC in its petition are appropriate for calculating the compensation 
obligations of those OSPs that utilize 1-950 access. The Commission 
encourages parties, particularly MCI and LDDS, to comment on this 
tentative conclusion and to submit data supporting alternative ratios. 
The Commission also tentatively concludes that the relatively minor 
percentage of competitive payphones in non-equal access areas, as 
estimated by APCC, which do not transmit the ANI required to track 
access phone calls, should be subject to status quo flat-rate 
compensation. The Commission invites parties to comment on the accuracy 
of APCC's estimates and to suggest alternative approaches for 
compensating PPOs for access code calls originating from non-equal 
access areas.

2. IXCs Required to Pay Per-Call Compensation

    The Commission tentatively concludes that the largest OSPs should 
be required to pay compensation to PPOs on a per-call basis. The 
Commission notes that AT&T and Sprint have already begun paying per-
call compensation. In the absence of a showing to the contrary, the 
Commission believes that the two other OSPs that currently have annual 
toll revenues exceeding $1 billion dollars should be able to pay 
compensation on a per-call basis without incurring significantly 
different administrative costs that those associated with the current 
per-phone mechanism. The Commission invites parties to comment on these 
tentative conclusions. The Commission also tentatively concludes that 
the flat-rate compensation obligations of the OSPs not meeting the 
annual revenue threshold should not change as a result of the 
implementation of per-call compensation for the largest OSPs. However, 
the Commission believes that such OSPs should be given the opportunity 
to pay compensation on a per-call basis, at their option. In addition, 
the Commission proposes to continue to monitor call-tracking 
capabilities within the industry for the purpose of moving in the 
future to a per-call compensation mechanism for all OSPs that receive 
access code calls.

3. Proposed Compensation Amount

    The Commission established a range of reasonable compensation rates 
in the Second Report and Order, 57 FR 21038-01 (1992). The proposed 
rate of $.25 per call, identical to that negotiated by AT&T and APCC, 
is clearly within that range. The Commission sees no reason to 
reconsider at this juncture its conclusions about the reasonableness of 
possible compensation rates, unless the participants in this docket 
submit useful data that differ significantly from the information that 
the Commission previously examined in this proceeding. The Commission 
tentatively concludes that a per-call rate will lead to a more 
efficient compensation mechanism through which both PPOs and OSPs 
ultimately will benefit. In addition, consumers will benefit because 
the per-call rate will encourage PPOs to place their payphones in 
locations that are likely to generate the most calls. The parties are 
invited to comment on these tentative conclusions.

4. Compensable Access Code Calls

    The definition of ``acess code'' set for in the Communications Act 
encompasses ``sequence[s] of numbers'' such as 1-800--COLLECT, 1-800-
OPERATOR, and others that connect a caller to an OSP which is not 
presubscribed to the originating line. The Commission tentatively 
concludes that OSPs must pay per-call compensation for 1-800 or 1-950 
access code calls, whether or not the dialing sequences were in use at 
the time the Commission adopted its previous orders in this docket. The 
Commission notes that AT&T has already agreed to pay APCC per-call 
compensation on the various 1-800 dialing sequences that allow callers 
to reach its operator services.

5. Functioning of Per-Call Compensation Mechanism

    In the Second Report and Order, the Commission prescribed the 
existing direct-billing arrangement because it placed the burden of 
implementing the compensation mechanism on those parties that receive 
the benefits of access code calls--IXCs and PPOs. The Commission 
tentatively concludes that this direct-billing arrangement should be 
maintained with the simple addition of requiring each OSP to send back 
to each PPO a statement indicating the number of access code calls that 
it has received from each of that PPO's competitive payphones. As 
before, the Commission continues to leave the 

[[Page 48959]]
specific details of the billing arrangement for the parties to 
determine. The Commission believes that this slight modification of the 
status quo most efficiently implements payments of per-call 
compensation by the largest OSPs.

6. Regulatory Flexibility Analysis

    As required by Section 603 of the Regulatory Flexibility Act, 5 
U.S.C. Section 601 et seq. (1981), the Commission has prepared a 
Regulatory Flexibility Analysis of the expected impact on small 
entities resulting from the policies and proposals set forth in the 
Notice. The full analysis is contained within the Notice. The Secretary 
shall send a copy of the Notice to the Chief Counsel for Advocacy of 
the Small Business Administration in accordance with Section 603(a) of 
the Regulatory Flexibility Act.

7 Ex Parte Rules--Non-Restricted Proceeding

    This is a non-restricted notice and comment rulemaking proceeding. 
Ex parte presentations are permitted, except during the Sunshine 
Agenda, provided they are disclosed as provided in Commission rules.
    All interested may file comments on the per-call compensation 
issues by October 10, 1995, and reply comments by October 31, 1995. All 
relevant and timely comments will be considered by the Commission 
before final action is taken in this proceeding. To file formally in 
this proceeding, participants must file an original and four copies of 
comments and reply comments. If participants want each Commissioner to 
have a personal copy of their comments, an original plus nine copies 
must be filed. Comments and reply comments should be sent to the Office 
of the Secretary, Federal Communications Commission, Washington, DC 
20554. The petition, comments, and reply comments will be available for 
public inspection during regular business hours in the Dockets 
Reference Room (Room 230) of the Federal Communications Commission, 
1919 M Street, NW., Washington, DC 20554. Copies of the petition and 
any subsequently filed documents in this matter may be obtained from 
ITS, Inc., 2100 M Street, NW., Suite 140, Washington, DC 20037, (202) 
857-3800.

Ordering Clauses

    It is Ordered, pursuant to Sections 1, 4(i)-4(j), 201-205, 226, and 
303(r) of the Communications Act of 1934, as amended, 47 U.S.C. 151, 
154(i), 154(j), 201-205, 226, and 303(r), that a Further Notice of 
Proposed Rulemaking is Issued.
    It is further ordered That the Chief of the Common Carrier Bureau 
is delegated authority to require the submission of additional 
information, make further inquiries, and modify the dates and 
procedures, if necessary, to provide for a fuller record and a more 
efficient proceeding.

List of Subjects in 47 CFR Part 64

    Communications common carriers, Operator service access, Payphone 
compensation, Telephone.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 95-23406 Filed 9-20-95; 8:45 am]
BILLING CODE 6712-01-M