[Federal Register Volume 62, Number 237 (Wednesday, December 10, 1997)]
[Proposed Rules]
[Pages 65053-65055]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-32223]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 32

[CC Docket No. 97-212; FCC 97-355]


Uniform System of Accounts for Interconnection

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: In this document, we propose rules for the accounting 
treatment of transactions related to interconnection and shared 
infrastructure. Specifically, we propose new Part 32 accounts and 
subsidiary recordkeeping requirements to record the revenues and 
expenses related to providing and obtaining interconnection. We 
tentatively conclude that new accounts are not necessary to record the 
revenues and expenses associated with sharing infrastructure.

DATES: Interested parties may file comments on or before December 10, 
1997, and reply comments on or before January 26, 1998. Written 
comments by the public on the proposed and/or modified information 
collections are due December 10, 1997. Written comments must be 
submitted by the Office of Management and Budget (OMB) on the proposed 
and/or modified information collections on or before February 9, 1998.

ADDRESSES: Parties should send their comments or reply comments to 
Office of the Secretary, Federal Communications Commission, 1919 M 
Street, NW., Room 222, Washington, DC 20554. Parties should also send a 
paper copy, and a copy on 3.5 inch diskette formatted in an IBM 
compatible form using, if possible, WordPerfect 5.1 for Windows 
software, to Matthew Vitale of the Common Carrier Bureau's Accounting 
and Audits Division, 2000 L Street, NW., Room 200F, Washington, DC 
20554. Commenters should also provide one copy of any documents filed 
in this proceeding to the Commission's copy contractor, International 
Transcription Service, 1231 20th Street, NW., Washington, DC 20036.

[[Page 65054]]

    In addition to filing comments with the Secretary, a copy of any 
comments on the information collection contained herein should be 
submitted to Judy Boley, Federal Communications Commission, Room 234, 
1919 M Street, NW., Washington, DC 20554, or via the Internet at 
[email protected], and to Timothy Fain, OMB Desk Officer, 10236 NEOB, 725 
17th Street, NW., Washington, DC 20503 or via the Internet to 
[email protected].

FOR FURTHER INFORMATION CONTACT: Matthew Vitale, Accounting and Audits 
Division, Common Carrier Bureau, (202) 418-0866.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Proposed Rulemaking adopted October 2, 1997, and released October 7, 
1997. The full text of this Commission notice is available for 
inspection and copying during normal business hours in the FCC Public 
Reference Room (Room 230), 1919 M Street, NW., Washington, DC. The 
complete text of this decision may be purchased from the Commission's 
copy contractor, International Transcription Service, 1231 20th Street, 
NW., Washington, DC 20036.

Paperwork Reduction Analysis

    This notice contains a proposed or modified information collection. 
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 Notice, as required by the Paperwork Reduction Act of 1995, Pub. 
L. 104-13. Public and agency comments are due at the same time as other 
comments on this notice; OMB notification of action is due 60 days from 
date of publication of this Notice in the Federal Register. 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 information 
collection; 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.
    OMB Approval Number: None.
    Title: Amendments to Uniform Systems of Accounts for 
Interconnection, Notice of Proposed Rulemaking, CC Docket No. 97-212.
    Form No.: N/A.
    Type of Review: New Collection.
    Respondents: Businesses or other for profit.
    Proposed Collections:

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                                                                  Est. time per response    Total annual burden 
                                                 # Respondents            (hours)                 (hours)       
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a. New Accounts..............................               68                        40                  2,720 
b. Subsidiary Accounting Records.............               68                       120                  8,160 
c. Cost Study................................               68                       160                 10,880 
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    Total Annual Burden: 21,760.
    Estimated Costs Per Respondent: $0.
    Needs and Uses: In this Notice of Proposed rulemaking issued in CC 
Docket No. 97-212, the Commission initiates a proceeding with the goal 
of reviewing comprehensively our Part 32 procedures dealing with the 
accounting treatment of transactions related to interconnection and 
shared infrastructure to ensure that they meet the objectives of the 
1996 Act. The Commission seeks comment on a proposal establishing new 
Part 32 accounts and subsidiary recordkeeping requirements to record 
the revenues and expenses related to providing and obtaining 
interconnection. The Commission also seeks comment on the conclusion 
that new accounts are not necessary to record the revenues and expenses 
associated with sharing infrastructure.

Regulatory Flexibility Analysis

    This Notice proposes new revenue and expense accounts for ILECs to 
record the revenues they receive and the amounts they pay in the sale 
and purchase of interconnection, access to unbundled network elements, 
transport and termination of traffic, and resale of telecommunications 
services. Section 603 of the Regulatory Flexibility Act (RFA), as 
amended,1 requires an initial Regulatory Flexibility Act 
Analysis in notice-and-comment rulemaking proceedings unless we certify 
that ``the rule will not, if promulgated, have a significant economic 
impact on a significant number of small entities.'' 2
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    \1\ 5 U.S.C. 603.
    \2\ Id. 605(b).
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    The RFA defines the term small entity as having the same meaning as 
small business concern under the Small Business Act (SBA),3 
which defines small business concern as ``one which is independently 
owned and operated and which is not dominant in its field of 
operation.'' 4 Section 121.201 of the SBA regulations 
defines small telecommunications entities in SIC Code 4813 (Telephone 
Communications, Except Radiotelephone) as any entity with fewer than 
1,500 employees at the holding company level.5 Some entities 
employing fewer than 1500 employees at the holding company level may be 
affected by the proposals made in this Notice. However, we do not 
consider such entities to be ``small entities'' under the RFA because 
they are either affiliates of large corporations or dominant in their 
field of operations. Therefore, we do not believe that the proposed 
rules will affect a substantial number of small entities.
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    \3\ Id. 601(6) adopting 15 U.S.C. Sec. 632(a)(1).
    \4\ 15 U.S.C. 632(a)(1).
    \5\ 13 CFR 121.201.
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    Even if the small ILECs were ``small entities'' under the SBA, we 
would still certify that no regulatory flexibility analysis is 
necessary here because none of the proposals in this Notice, if 
adopted, would have a significant economic impact on the carriers which 
must comply with our accounting rules. Pursuant to long-standing rules, 
ILECs must record the revenues and expenses associated with their 
operations. This Notice merely proposes that new revenue and expense 
accounts be established so that the amounts pertaining to 
interconnection and infrastructure sharing will be uniformly reported. 
This procedure will be easy for ILECs to implement and will not require 
costly or burdensome analysis.
    We therefore certify, pursuant to section 605(b) of the RFA that 
the rules proposed in this Notice will not have a significant economic 
impact on a substantial number of small entities.

Ordering Clause

    Accordingly, it is ordered that, pursuant to sections 1, 2, 4, 201-
205, 215, 218, 220, 229, 254, and 410 of the Communications Act of 
1934, as amended, 47 U.S.C. Secs. 151, 152, 154,

[[Page 65055]]

201-205, 215, 218, 220, 229, 254 and 410 that notice is hereby given of 
proposed amendments to Part 32 of the Commission's rules, 47 CFR part 
32, as described in this notice of proposed rulemaking.

List of Subjects in 47 CFR Part 32

    Uniform System of Accounts.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 97-32223 Filed 12-9-97; 8:45 am]
BILLING CODE 6712-01-P