[Federal Register Volume 61, Number 135 (Friday, July 12, 1996)]
[Rules and Regulations]
[Page 36653]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17810]


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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 61 and 64

[DA 96-1073]


Inmate Calling Services--Prison Payphones

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: On January 30, 1996, the Commission adopted a Declaratory 
Ruling that inmate-only payphone instruments are customer premises 
equipment (CPE) that must be provided on an unregulated basis. The 
Commission additionally denied petitioner's request that certain 
inmate-only services be considered enhanced services.
    Three petitions were filed with the Commission on March 21, 1996, 
and one on April 5, 1996, requesting that the Declaratory Ruling be 
stayed or waived pending the effective date of new rules, pursuant to 
Section 276 of the Telecommunications Act of 1996, that must be adopted 
for all payphones. One petitioner also argued that the Declaratory 
Ruling did not apply to smaller local exchange carriers (LECs). In this 
Order we deny the request in part and grant it in part, and the 
intended effect of this action is to ensure that the inmate-only 
payphone market is competitive.

EFFECTIVE DATE: July 12, 1996.

FOR FURTHER INFORMATION CONTACT: Alan Thomas, 202-418-2338.

SUPPLEMENTARY INFORMATION: This report summarizes the Commission's 
Order in the matter of Petition for Waiver and Partial Reconsideration 
or Stay of Inmate-Only Payphones Declaratory Ruling (DA 96-1073, 
adopted July 3, 1996 and released July 3, 1996). The file is available 
for inspection and copying in the Network Services Reference Room, room 
220, 2000 M Street, NW., Washington, DC, during the weekday hours of 
8:30 a.m. to 3:30 p.m. Monday through Thursday; 8:30 a.m. to 11:30 a.m. 
on Friday; closed between 12:30 p.m. and 1:30 p.m. Monday through 
Thursday; or copies may be purchased from the Commission's duplicating 
contractor, ITS, Inc. 2100 M St., NW., Suite 140, Washington, DC 20037, 
phone (202) 857-3800.

Analysis of Proceeding

    2. Petitioners requested the Commission to stay, waive, or 
reconsider the effective date of the Declaratory Ruling pending the 
effective date of new rules that must be adopted for all payphones 
pursuant to Section 276 of the Telecommunications Act of 1996. 
Petitioners contended that compliance would be superfluous if 
accounting changes were required to be made solely for inmate-only 
payphones. Petitioners also argued that providing inmate-only payphones 
as unregulated CPE would constitute a new service, and that tariffs 
disclosing technical information regarding such new service must be 
filed with the Commission six or twelve months before introduction of 
the new service; thus, petitioners contended that this disclosure 
requirement made the September 2, 1996 deadline in the Declaratory 
Ruling impossible to meet. Petitioners also argued that the Declaratory 
Ruling is in conflict with Section 402 of the Telecommunications Act of 
1996 because the former would require that cost allocation manuals 
(CAMs) be filed more than once annually. Finally, one of the 
petitioners separately argued that the Telecommunications Act of 1996 
did not intend for the Declaratory Ruling to apply to smaller LECs.
    3. In this Order, the Commission concluded that the petitioners 
generally had not satisfied their burden, as stated in Washington 
Metropolitan Transit Comm'n v. Holiday Tours, Inc., 559 F.2d 841 (D.C. 
Cir. 1977), and thus denied the request for stay and waiver of the 
Declaratory Ruling. Petitioners did not satisfy their burden that, 
absent a stay, they would be irreparably injured; nor did they quantify 
or otherwise demonstrate specific activities that would be superfluous 
or burdensome. Petitioners also failed to address what effect a stay 
would have upon the public interest or the harm a stay poses to other 
parties. The Commission did, however, stay the requirement that CAM 
revisions be filed. Given that the Commission will soon address Section 
402 as part of its ongoing implementation of the Telecommunications Act 
of 1996, petitioners' position regarding CAM filings did have 
sufficient merit. Carriers are still required, however, to begin 
separating their costs effective July 3, 1996.
    4. The Commission also waived its requirement that tariffs for a 
new service such as unregulated payphones must be filed within six or 
twelve months. Adherence to the Commission's rule would have delayed 
implementation of the Declaratory Ruling, and the appropriate remedy is 
not to delay implementation, but rather to waive the normal time 
period.
    5. Finally, the Commission based its Declaratory Ruling on 
longstanding CPE policies and not the Telecommunications Act of 1996; 
petitioners offered no bar to the Commission's continued application of 
these policies with regard to smaller LECs.

Ordering Clauses

    6. It is ordered, pursuant to Sec. 1.3 of the Commission's rules, 
47 CFR 1.3, and authority delegated in Sec. 0.91 of Commission's rules, 
47 CFR 0.91, and Sec. 0.291 of the Commission's rules, 47 CFR 0.291, 
that the Petition for Partial Reconsideration or Stay filed jointly by 
Bell Atlantic, BellSouth, NYNEX, and Pacific Bell and Nevada Bell; the 
Petition for Reconsideration and Stay filed by Cincinnati Bell; the 
Petition for Waiver filed by Southwestern Bell; and the Petition for 
Waiver filed by Pacific Bell and Nevada Bell are denied to the extent 
described above.
    7. It is further ordered that pursuant to Sec. 1.3 of the 
Commission's rules, 47 CFR 1.3, and authority delegated in Sec. 0.91 of 
the Commission's rules, 47 CFR 0.91, and Sec. 0.291 of the Commission's 
rules, 47 CFR 0.291, that we stay the requirement that petitioners file 
their CAM revisions on July 3, 1996, consistent with this order; 
however, carriers are still required to begin separating their costs 
effective July 3, 1996.
    8. It is further ordered that pursuant to Sec. 1.3 of the 
Commission's rules, 47 CFR 1.3, and authority delegated in Sec. 0.91 of 
the Commission's rules, 47 CFR 0.91, and Sec. 0.291 of the Commission's 
rules, 47 CFR 0.291, that we waive the network disclosure time 
requirements applicable to a new unbundled network service to the 
extent described above.

List of Subjects in 47 CFR Parts 61 and 64

    Federal Communications Commission, Inmate-only payphone equipment, 
Telephones.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 96-17810 Filed 7-11-96; 8:45 am]
BILLING CODE 6712-01-P