[Federal Register Volume 61, Number 226 (Thursday, November 21, 1996)]
[Rules and Regulations]
[Pages 59198-59201]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-29295]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 43

[CC Docket No. 90-337, FCC 96-160]


Regulation of International Accounting Rates

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: On April 9, 1996, the Federal Communications Commission 
adopted a Third Report and Order and Order on Reconsideration 
(``Order'') that establishes standards for reporting when a carrier 
interconnects an international private line to the U.S. Public Switched 
Network (PSN). With this Order we require that any carrier that 
interconnects an international private line to the PSN at the central 
office report on an annual basis its arrangements for such 
interconnection. However, we require these carriers to fulfill their 
Sec. 43.15 notification requirements by filing only information on the 
country of origin, and number and type of private lines interconnected 
for each customer during the reporting period. This decision reaffirms 
our longstanding policy of allowing end users to interconnect their 
international private lines to the public switched network for their 
own use, while enabling us to better monitor the effects of our resale 
rules.
    In taking this action, the Commission's objective is to enhance its 
ability to monitor and assess the impact of end user interconnections 
on our international settlements policy, and to enhance the ability of 
the Commission and interested parties to monitor for unauthorized 
private line resale, while being sensitive to end users' reluctance to 
disclose commercially sensitive or proprietary information.

EFFECTIVE DATE: This rule is effective December 23, 1996, except 
Sec. 43.51(d) which contains new information collections which will not 
become effective until approval by Office of Management and Budget 
(OMB). The Commission will publish a document in the Federal Register 
at a later date establishing the effective date.

ADDRESSES: Submit all comments concerning the Paperwork Reduction Act 
to Dorothy Conway, Federal Communications Commission, Room 234, 1919 M 
Street, N.W., Washington, D.C. 20554, or via the Internet to 
[email protected], and to Timothy Fain, OMB Desk Officer, 10236 NEOB, 
725--17th Street, N.W., Washington, D.C. 20503 or via the Internet to 
[email protected].

FOR FURTHER INFORMATION CONTACT:
Susan O'Connell, Attorney, International Bureau, (202) 418-1460. For 
additional information concerning

[[Page 59199]]

the information collections contained in the Order contact Dorothy 
Conway at (202) 418-0217, or via the Internet to [email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Third 
Report and Order and Order on Reconsideration adopted on April 9, 1996, 
and released on May 20, 1996 (FCC 96-160). The full text of this Order 
is available for inspection and copying during normal business hours in 
the FCC Reference Center (Room 239), 1919 M St., N.W., Washington D.C. 
The complete text also may be purchased from the Commission's Copy 
contractor, International Transcription Service, Inc. (202) 857-3800, 
2100 M St., N.W., Suite 140, Washington D.C. 20037.

Paperwork Reduction Act

    This Third Report and Order and Order on Reconsideration contains a 
proposed information collection subject to the Paperwork Reduction Act 
of 1995 (PRA). It has been submitted to the Office of Management and 
Budget (OMB) for review under Section 3507(d) of the PRA. OMB, the 
general public, and other Federal agencies are invited to comment on 
the proposed or modified information collections contained in this 
proceeding.
    The Commission, as part of its continuing effort to reduce 
paperwork burdens, invites the general public and the Office of 
Management and Budget (OMB) to comment on the information collections 
contained in this Order. Comments should address: (a) Whether the 
proposed collection of information is necessary for the proper 
performance of the functions of the Commission, including whether the 
information shall have practical utility; (b) the accuracy of the 
Commission's burden estimates; (c) ways to enhance the quality, 
utility, and clarity of the information collected; and (d) ways to 
minimize the burden of the collection of information on the 
respondents, including the use of automated collection techniques or 
other forms of information technology.
    This Order contains a proposed information collection. Written 
comments by the public on the information collections should be 
submitted on or before December 23, 1996. If you anticipate that you 
will be submitting comments, but find it difficult to do so within the 
period of time allowed by this notice, you should advise the contact 
listed below as soon as possible.
    A copy of any comments on the information collections contained 
herein should be submitted to Dorothy Conway, Federal Communications 
Commission, Room 234, 1919 M Street, N.W., Washington, DC 20554, or via 
the Internet to [email protected], and to Timothy Fain, OMB Desk Officer, 
10236 NEOB, 725--17th Street, N.W., Washington, DC 20502 or via the 
Internet to [email protected].
    OMB Approval Number: 3060-.
    Title: Common Carrier International Telecommunications Services.
    Form No.: N/A.
    Type of Review: New collection.
    Respondents: Carriers interconnecting their private lines to the 
U.S. Public Switched Network.
    Number of Respondents: 10.
    Estimated Time Per Response: 8.
    Total Annual Burden: 80.
    Estimated costs per respondent: none.
    Needs and Uses: The collections of information for which approval 
is here sought are contained in amendments to Part 43 and in the Order 
adopting such amendments. These information collections are authorized 
and necessary for the Commission to carry out its statutory mandate, 
pursuant to Sections 1, 4, 201-205, 211, 214, 218-220, and 303 of the 
Communications Act of 1934, as amended, 47 U.S.C. Sections 151, 154, 
201-205, 211, 214, 218-220, and 303, and Part 43 of the Commission's 
Rules.
    The information collections contained in amendments to Part 43 are 
necessary to assist us in reviewing the impact, if any, that end user 
private line interconnections have on our international settlements 
policies. The information collections will also enhance the ability of 
the Commission and interested parties to monitor for unauthorized 
resale, thus preserving the integrity of our international resale 
policy.
    The information will be used by the Commission staff in carrying 
out its duties under the Communications Act. Common carriers that 
interconnect an international private line to the PSN at the carrier's 
switch, including any switch in which the carrier obtains capacity 
either through lease or otherwise, would report on an annual basis 
certain information about its arrangements for such interconnection 
under Part 43 of the Commission's rules, as modified by the 
Commission's Order.

Summary of the Third Report and Order and Order on Reconsideration

    1. In response to the Order on Reconsideration and Third Further 
Notice Proposed Rulemaking in Phase II of Regulation of International 
Accounting Rates (57 FR 62543 (December 31, 1992)), the Commission 
adopts this Third Report and Order and Order on Reconsideration 
(``Order''). This Order modifies current standards for reporting the 
interconnection of international private lines to the U.S. PSN.
    2. Our December 1991 International Resale Order authorized the 
resale of international private lines to provide switched services. 
However, we recognized that ``one-way'' resale of international private 
lines would tend to divert International Message Telephone Service 
(IMTS) traffic from the settlements process and increase the U.S. net 
settlements deficit. We accordingly required U.S. carriers to permit 
resale of their international private lines only to those countries 
that afford U.S.-based resellers ``equivalent'' resale opportunities. 
Our international resale policy, however, did not alter our policy of 
allowing end users to attach their private lines to the U.S. PSN for 
their own use. Section 43.51(a)(3) currently requires U.S. carriers to 
file a notification of any intercarrier agreement for the 
interconnection of an international private line to the U.S. PSN at the 
carrier's central office, whether on behalf of a reseller or an end 
user. In the Order, we discerned no reason to distinguish between 
intercarrier interconnection agreements entered into on behalf of end 
users, and interconnection agreements entered into directly by the 
carrier and the end users itself. Accordingly, we ordered that Section 
43.51 be amended to require that carriers also notify the Commission of 
any agreement for private line interconnection entered into directly by 
a carrier and an end user.
    3. Addressing commenters' concerns over the potential disclosure of 
commercially sensitive information, we also ordered an amendment to 47 
CFR Sec. 43.51 to require only certain limited information. 
Specifically, we will require carriers interconnecting an international 
private line to the U.S. PSN to report on the country of origin and the 
number and type (e.g., 64-kbps circuit) of private lines interconnected 
for each customer (whether a reseller or end user). The identity of the 
customer need not be reported. In recognition of commenters' concerns 
over the disclosure of the country of origin, we will treat the country 
of origin information as confidential. Further, we only require that 
this information be reported on an annual basis. We clarify that the 
carrier that we require to report the interconnection is the carrier 
that is itself making the physical interconnection at its switch, 
including any switch in which the carrier obtains capacity, whether by 
lease or otherwise.
    4. We believe that this data will assist us in reviewing the 
impact, if any, that end user private line interconnections

[[Page 59200]]

have on our international settlements policies, and will also enhance 
the ability of the Commission and interested parties to monitor for 
unauthorized resale, thus preserving the integrity of our international 
resale policy. We further conclude that, by requiring interconnecting 
carriers to file only this limited information, and by keeping the 
country of origin confidential, we address the commenting parties' 
concern that we not require the disclosure of commercially sensitive or 
proprietary information. We believe that this policy strikes the proper 
balance between our need for such data and the need to protect against 
the unnecessary disclosure of such data. Finally, because the 
equivalency of such markets obviates the need for such data, 
interconnections of international private lines to Canada, the United 
Kingdom, Sweden, and any other countries which we find to satisfy our 
equivalency standard need not be reported. We exempt private lines to 
these points from this requirement.
    5. By making these changes to Sec. 43.51 we grant in part CITU's 
Petition for Reconsideration. Rather than require that carriers file 
copies of their intercarrier agreements for private line 
interconnection, we require only that carriers file certain limited 
information. This change responds to CITU's concern that we permit 
carriers to file redacted versions of interconnection agreements. It is 
also less burdensome than requiring that the actual interconnection 
agreement be filed. While CITU's Petition appeared concerned primarily 
with disclosure of proprietary information of end users, as opposed to 
resellers, we find no reason on reconsideration to require copies of 
any agreements for private line interconnection to be filed.

Final Regulatory Flexibility Act Analysis

    Pursuant to Section 603 of Title 5, United States Code, 5 U.S.C. 
603, an initial Regulatory Flexibility Analysis was incorporated in the 
Notice of Proposed Rulemaking in CC Docket 90-337. Written comments on 
the proposals in the Notice, including the Regulatory Flexibility 
Analysis, were requested.

A. Need and Purpose of Rules

    With this Order we modify Sec. 43.51 of our Rules to require any 
carrier that interconnects an international private line to the U.S. 
PSN at the carrrier's switch, including any switch in which the carrier 
obtains capacity, whether by lease or otherwise, to report all such 
interconnections on an annual basis. Interconnections of private lines 
between the United States and countries deemed by the Commission to 
offer ``equivalent'' private line resale opportunities are exempt from 
this requirement. We are requiring that only certain limited 
information be submitted. This information is limited to the country of 
origin (which will be treated as confidential) and the number and type 
of circuits for each customer. This reporting requirement enhances our 
ability to monitor and assess the impact of end user interconnections 
on our international settlements policy, as well as the Commission's 
and interested parties' ability to monitor for unauthorized resale of 
private lines, while also being sensitive to end users' reluctance to 
disclose commercially sensitive or proprietary information.

B. Issues Raised by the Public in Response to the Initial Analysis

    In this proceeding commenters requested that we clarify our current 
notification requirements, protect from disclosure commercially 
sensitive business information of end users, and exempt from the 
notification requirement interconnections of private lines to countries 
found to offer equivalent resale opportunities.

C. Significant Alternatives Considered

    We have attempted to balance all of the commenters' concerns with 
our public interest mandate under the Act. We modify Sec. 43.51 to 
require that carriers notify us of all private line interconnection 
agreements. Based on the record before us, we see no reason to 
distinguish between intercarrier interconnection agreements entered 
into on behalf of end users, and interconnection agreements entered 
into directly by a carrier and an end user itself. We modify this 
section, however, to require notification only on an annual basis and 
to require only certain limited information: the country of origin and 
the number and type of private lines interconnected for each customer. 
Additionally, we will treat the country of origin as confidential, and 
exempt from the scope of Sec. 43.51 private lines to countries that we 
find to satisfy our equivalency standard. These modifications will 
reduce unnecessarily burdensome filing requirements and responds to 
carriers' and end users' concerns over disclosing commercially 
sensitive information.

Ordering Clauses

    Accordingly, it is ordered that pursuant to authority contained in 
Sections 1, 4, 201-205, 211, 214, 218-220, and 303 of the 
Communications Act of 1934, as amended, 47 U.S.C. Sections 151, 154, 
201-205, 211, 214, 218-220, and 303, Part 43 of the Commission's Rules, 
47 CFR Part 43 is amended as set forth below.
    It is further ordered that the policies, rules, and requirements 
set forth herein are adopted.
    It is further ordered that CITU's Petition for Clarification and in 
the Alternative for Partial Reconsideration is granted in part and 
denied in part as set forth herein.
    It is further ordered that this rule is effective December 23, 
1996, except Sec. 43.51(d) which contains new information collections 
which will not become effective until approval by Office of Management 
and Budget (OMB). The Commission will publish a document in the Federal 
Register at a later date establishing the effective date.

List of Subjects in 47 CFR Part 43

    Communications common carriers, Reporting and recordkeeping 
requirements.

Federal Communications Commission.
William F. Caton,
Acting Secretary.

Rule Changes

    Part 43 of title 47 of the Code of Federal Regulations is amended 
as follows:

PART 43--REPORTS OF COMMUNICATION COMMON CARRIERS AND CERTAIN 
AFFILIATES

    1. The authority citation for Part 43 continues to read as follows:

    Authority: Sec. 4, 48 Stat. 1066, as amended; 47 U.S.C. 154, 
unless otherwise noted. Interpret or apply secs. 211, 219, 220, 48 
Stat. 1073, 1077, as amended; 47 U.S.C. 211, 219, 220.

    2. Section 43.51 is amended by removing paragraph (a)(3), 
redesignating paragraph (a)(4) as paragraph (a)(3), adding the word 
``and'' at the end of paragraph (a)(2), redesignating paragraph (d) as 
paragraph (e) and adding a new paragraph (d) to read as follows:


Sec. 43.51  Contracts and concessions.

* * * * *
    (d) Any U.S. carrier that interconnects an international private 
line to the U.S. Public Switched Network, at its switch, including any 
switch in which the carrier obtains capacity either through lease or 
otherwise, shall file annually with the Chief of the International 
Bureau a certified statement containing the number and type (e.g., 64-
kbps circuits) of private lines interconnected in such a manner. The 
certified statement shall specify the number and

[[Page 59201]]

type of interconnected private lines on a country specific basis. The 
identity of the customer need not be reported, and the Commission will 
treat the country of origin information as confidential. Carriers need 
not file their contracts for such interconnections, unless they are 
specifically requested to do so. These reports shall be filed on a 
consolidated basis on February 1 (covering international private lines 
interconnected during the preceding January 1 to December 31 period) of 
each year. International private lines to countries which we find to 
satisfy our equivalency standard at any time during a particular 
reporting period are exempt from this requirement.
* * * * *
[FR Doc. 96-29295 Filed 11-20-96; 8:45 am]
BILLING CODE 6712-01-M