[Federal Register Volume 60, Number 188 (Thursday, September 28, 1995)]
[Rules and Regulations]
[Pages 50120-50121]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-24079]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 69
[CC Docket No. 91-213; FCC 95-404]
Transport Rate Structure and Pricing
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: In this Fourth Memorandum Opinion and Order on
Reconsideration, we address two issues raised by MCI on reconsideration
of the Third Reconsideration Order (Transport Rate Structure and
Pricing, Third Memorandum Opinion and Order and Supplemental Notice of
Proposed Rulemaking)--the mid-course adjustment (or ``true up'') of the
interconnection charge and the rules regarding discounted transport
offerings and pricing flexibility. In addition, we address, on our own
initiative, the expiration of the interim transport rate structure,
which was initially set to expire on October 31, 1995. We dismiss in
part MCI's Petition for Clarification or, in the Alternative,
Reconsideration as moot, and grant in part that petition. We also
reconsider the expiration date of the interim transport rate structure
rules and extend the effectiveness of those rules pending further
Commission action. The intended effect of this action is to maintain
the interim transport rate structure.
EFFECTIVE DATE: October 30, 1995.
FOR FURTHER INFORMATION CONTACT: Matthew J. Harthun, (202) 418-1590 or
David L. Sieradzki, (202) 418-1576, Policy and Program Planning
Division, Common Carrier Bureau.
SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's
Fourth Memorandum Opinion and Order on Reconsideration in CC Docket No.
91-213, adopted and released on September 22, 1995. The complete text
of this Fourth Memorandum Opinion and Order on Reconsideration is
available for inspection and copying during normal business hours in
the FCC Reference Center, 1919 M Street, N.W., Room 239, Washington,
D.C. 20554.
Synopsis of Memorandum Opinion and Order
A. MCI's Petition for Clarification or, in the Alternative,
Reconsideration
1. On February 21, 1995, MCI filed a Petition for Clarification or,
in the Alternative, Reconsideration of the Third Reconsideration Order,
60 FR 4107 (January 20, 1995). MCI asks the Commission to clarify or
reconsider the procedure for LECs to implement a mid-course adjustment
(or ``true up'') of the interconnection charge. In addition, MCI asks
the Commission to clarify that LECs are not precluded from offering
their access customers percentage and growth discounts, so long as they
can demonstrate that such discounts are cost-based.
1. Interconnection Charge ``True Up''
2. In the Third Reconsideration Order, we required the LECs to file
any requests for mid-course adjustment to the interconnection charge no
later than March 31, 1995. No requests for mid-course adjustment were
submitted by that date. Accordingly, MCI's request for clarification or
reconsideration regarding the inclusion of non-recurring
[[Page 50121]]
costs in the mid-course adjustment is moot. The request is therefore
dismissed.
2. Percentage and Growth Discounts
3. We reaffirm our conclusion in the Third Reconsideration Order
that the discussion of discounted transport offerings in the Switched
Transport Expanded Interconnection Order (Expanded Interconnection with
Local Telephone Company Facilities, Second Report and Order and Third
Notice of Proposed Rulemaking 58 FR 48756 (September 17, 1993)) and as
reaffirmed and modified by the Expanded Interconnection Remand Order
(Expanded Interconnection with Local Telephone Company Facilities,
Memorandum Opinion and Order, 59 FR 38922 (August 1, 1994)) and the
rules adopted in that Order do not contemplate percentage or growth
discounts. As with any of the Commission's rules, a party may file for
waiver if the party believes that, under the particular circumstances
it faces, a waiver would better serve the public interest than
application of the general rule. In the particular situation here at
issue, a LEC is not precluded from seeking waiver of the transport
access charge rules to offer its access customers a percentage or
growth discount. Waivers will only be granted for good cause shown (See
47 CFR 1.3). Such a showing requires the petitioning party to
demonstrate the special circumstances that warrant deviation from the
general rule and to show how such deviation would better serve the
public interest. A showing that such discounts would be cost-based in
the particular circumstances at issue, as suggested by MCI, is only one
of a number of potentially relevant factors. Accordingly, MCI's request
is granted insofar as it seeks clarification that a LEC may seek a
waiver of our rules under normal waiver standards to offer percentage
or growth discounts.
B. Expiration Date of the Interim Transport Rate Structure Rules
4. We believe that the public interest requires retention of the
existing transport rate structure and pricing rules beyond October 31,
1995, and therefore reconsider, on our own motion, the expiration date
for those rules. The process of adjusting from the old equal charge
rate structure to the interim transport rate structure appears to have
required more time and effort than we originally anticipated, and we
wish to avoid the disruption predicted by the parties. We also agree
that consideration of a long-term transport rate structure would raise
issues that are closely related to possible comprehensive reform of our
access charge rules. Accordingly, we reconsider our original decision
to impose the current transport rate structure and pricing rules only
through October 31, 1995, and extend the effectiveness of the interim
transport rate structure, pending further Commission action.
C. Ordering Clauses
5. Accordingly, IT IS ORDERED, pursuant to authority contained in
Sections 1, 4 (i) and (j), 201-205, 218, 220 and 403 of the
Communications Act of 1934, as amended, 47 U.S.C. 151, 154 (i) and (j)
201-205, 218, 220 and 403, Part 69 of the Commission's rules is amended
as set forth below.
6. It is further ordered that MCI's Petition for Clarification or,
in the Alternative, Reconsideration is dismissed in part as moot, and
is granted in part as indicated herein.
7. It is further ordered that the Commission's rules as amended
herein shall be effective 30 days after the date of publication in the
Federal Register.
List of Subjects in 47 CFR Part 69
Communications common carriers, Reporting and recordkeeping
requirements, Telephone.
Amendment to the Code of Federal Regulations
Part 69 of Title 47 of the Code of Federal Regulations is amended
as follows:
PART 69--ACCESS CHARGES
1. The authority citation for Part 69 continues to read as follows:
Authority: Secs. 4, 201, 202, 203, 205, 218, 403, 48 Stat. 1066,
1070, 1072, 1077, 1094, as amended 47 U.S.C. 154, 201, 202, 203,
205, 218, 403, unless otherwise noted.
2. Section 69.110 is amended by revising paragraphs (a) and (e) to
read as follows:
Sec. 69.110 Entrance facilities.
(a) A flat-rated entrance facilities charge expressed in dollars
and cents per unit of capacity shall be assessed upon all interexchange
carriers and other persons that use telephone company facilities
between the interexchange carrier or other person's point of
demarcation and the serving wire center.
* * * * *
(e) Except as provided in paragraphs (f), (g), and (h) of this
section, telephone companies shall not offer entrance facilities based
on term discounts or volume discounts for multiple DS3s or any other
service with higher volume than DS3.
* * * * *
3. Section 69.111 is amended by revising paragraphs (b) and (g) to
read as follows:
Sec. 69.111 Tandem-Switched Transport and Tandem Charge.
* * * * *
(b) A tandem-switched transmission charge expressed in dollars and
cents per access minute shall be assessed upon all interexchange
carriers and other persons that use telephone company tandem-switched
transport facilities.
* * * * *
(g) The tandem charge shall be set to recover twenty percent of the
annual part 69 interstate tandem revenue requirement.
* * * * *
4. Section 69.112 is amended by revising paragraphs (a) and (e) to
read as follows:
Sec. 69.112 Direct-Trunked Transport.
(a) A flat-rated direct-trunked transport charge expressed in
dollars and cents per unit of capacity shall be assessed upon all
interexchange carriers and other persons that use telephone company
direct-trunked transport facilities.
* * * * *
(e) Except as provided in pagagraphs (f), (g), and (h) of this
section, telephone companies shall not offer direct-trunked transport
rates based on term discounts or volume discounts for multiple DS3s or
any other service with higher volume than DS3.
* * * * *
Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 95-24079 Filed 9-27-95; 8:45 am]
BILLING CODE 6712-01-M