[Federal Register Volume 61, Number 54 (Tuesday, March 19, 1996)]
[Rules and Regulations]
[Pages 11163-11164]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-5188]



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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Chapter I

[FCC 96-37]


International Accounting Rates Reform

AGENCY: Federal Communications Commission.

ACTION: Final rule; policy statement.

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SUMMARY: On January 31, 1996, the Federal Communications Commission 
adopted a Policy Statement (FCC 96-37) which sets forth a shift in its 
policies on international accounting rates. With these changes the 
Commission seeks to encourage competition in the U.S. market for global 
telecommunications services and technological innovation.

EFFECTIVE DATE: March 19, 1996.

FOR FURTHER INFORMATION CONTACT: Maureen C. McLaughlin, Attorney-
Advisor, Policy and Facilities Branch, Telecommunications Division, 
International Bureau, (202) 418-1470.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Policy 
Statement adopted and released on January 31, 1996. The full text of 
this Policy Statement is available for inspection and copying during 
normal business hours in the FCC's International Bureau's Public 
Reference Center, Room 102 of the Federal Communications Commission, 
2000 M Street, N.W., Washington, D.C. 20554.
    In light of this Policy Statement, the Commission also released a 
Public Notice wherein requested the submission of supplemental comments

[[Page 11164]]
and reply comments. (FCC Public Notice, DA 96-105, released January 31, 
1996.) (In response to requests for extension of time, the Commission 
subsequently revised the supplemental comment and reply period. (FCC 
Public Notice DA 96-177 and FCC Public Notice DA 96-291, published 
elsewhere in this issue.)) In the Public Notice, the Commission 
requested that these supplemental comments should be filed in CC Docket 
No. 90-337, Phase II, In the Matter of Regulation of International 
Accounting Rates (Second Further Notice of Proposed Rulemaking) (58 FR 
3522, Jan. 11, 1993).

Summary of Policy Statement

    1. With this Policy Statement the Commission introduces flexibility 
into its approach to the regulation of international accounting rates. 
Specifically, the Commission is refocusing its regulatory approach to 
accounting rates in three ways:
    2. First, it will increase regulatory support for new services that 
increase competitive pressure in the international market.
    3. Second, it plans to tailor its accounting rates policies to 
reflect different market conditions such as: 1) monopoly or highly 
concentrated markets, 2) effectively competitive markets, and 3) 
developing countries' markets. In countries where a monopoly supplier, 
or supplier with significant market power, provides telecommunications 
services, the Commission will strengthen its existing accounting rates 
policies to encourage lower accounting rates. In countries with 
effective competition, the Commission will give U.S. carriers the 
flexibility to negotiate alternative settlement arrangements, even if 
they require a waiver of traditional Commission accounting rate 
policies. The Commission will also explore mechanisms specifically 
designed to assist developing countries during the transition to more 
competitive markets and lower accounting rates.
    4. Finally it plans to restructure the benchmarks by which it 
measures progress in this area and will invite carriers to identify 
those foreign administrations most reluctant to lower accounting rates.

Ordering Clause

    1. It is ordered that, pursuant to Sections 1, 4, 201-205, 211, 
215, 218-220, and 303 of the Communications Act of 1934, as amended, 47 
U.S.C. Sections 151, 154, 201-205, 211, 215, 218-220, and 303, this 
Policy Statement is Adopted, and March 19, 1996.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 96-5188 Filed 3-18-96; 8:45 am]
BILLING CODE 6712-01-P