[Federal Register Volume 63, Number 124 (Monday, June 29, 1998)]
[Proposed Rules]
[Pages 35168-35170]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-17079]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Ch. I

[CC Docket No. 98-94; FCC 98-118]


Testing New Technologies

AGENCY: Federal Communications Commission.

ACTION: Notice of inquiry.

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SUMMARY: On June 11, 1998, the Federal Communications Commission 
released a Notice of Inquiry to solicit public comment about the 
effects of existing Title II regulations on experiments involving 
advanced telecommunications technology conducted by firms subject to 
those regulations. The document, part of the Commission's 1998 biennial 
regulatory review, seeks comment about various initiatives the 
Commission could undertake in order to promote technology testing, 
including use of the Commission's biennial review power to repeal or 
modify regulations, and, alternatively, use of the Commission's 
authority to forbear from applying certain statutory provisions and 
Commission rules.

DATES: Comments are due on or before July 21, 1998. Reply comments are 
due on or before August 5, 1998.

ADDRESSES: Comments and reply comments should be sent to the Office of 
the Secretary, Federal Communications Commission, 1919 M Street, NW, 
Suite 222, Washington, DC 20554, with a copy to Scott Bergmann of the 
Common Carrier Bureau, Federal Communications Commission, 2033 M 
Street, NW, Suite 500, Washington, DC 20554. Parties should also file 
one copy of any documents filed in this docket with the Commission's 
copy contractor, International Transcription Services, Inc. (ITS), 1231 
20th St., NW, Washington, DC 20036, (202) 857-3800.

FOR FURTHER INFORMATION CONTACT: Thomas J. Beers, Deputy Chief of the 
Industry Analysis Division, Common Carrier Bureau, at (202) 418-0952, 
or Scott K. Bergmann, Industry Analysis Division, Common Carrier 
Bureau, at (202) 418-7102.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Inquiry released June 11, 1998 (FCC 98-118). The full text of this 
Notice of Inquiry is available for inspection and copying during normal 
business hours in the FCC Reference Center, Room 239, 1919 M Street, 
Washington, DC 20554. The complete text also may be purchased from the 
Commission's copy contractor, International Transcription Service, Inc. 
(202) 857-3800, 1231 20th St., NW, Washington, DC 20036.

Summary of the Public Notice

    1. In the Notice of Inquiry (Notice), the Commission solicits 
public comment about the effects of its existing Title II regulations 
on experiments involving advanced telecommunications technology 
conducted by firms subject to these regulations. The inquiry is based 
on the Commission's belief that experiments involving new technology, 
including technical trials and market trials, are a critical step in 
the process of introducing new services that benefit the public. The 
Commission seeks to ensure that its regulation does not unnecessarily 
discourage applicants from conducting experiments involving new 
technology and new applications of existing technology. The Commission 
seeks comment on ways in which it may redesign its regulation in order 
to encourage and facilitate such tests.
    2. Section 7 of the Communications Act of 1934, as amended (the 
Communications Act or the Act), states that it is ``the policy of the 
United States to encourage the provision of new technologies and 
services to the public.'' More recently, Congress reinforced section 7 
by adding section 706 of the Telecommunications Act of 1996. Section 
706(a) encourages the deployment of advanced telecommunications 
services by directing the Commission to ``encourage the deployment on a 
reasonable and timely basis of advanced telecommunications capability 
to all Americans * * * by utilizing, in a manner consistent with the 
public interest, convenience, and necessity, price cap regulation, 
regulatory forbearance, measures that promote competition in the local 
telecommunications market, or other regulating methods that remove 
barriers to infrastructure investment.'' Pursuant to these 
congressional directives, the Notice seeks public comment about a broad 
range of issues relating to the Commission's regulation of technology 
testing.
    3. Pursuant to new section 11, Congress has required the Commission 
to conduct a biennial review of regulations that apply to operations or 
activities of any provider of telecommunications service and to repeal 
or modify any regulation it determines to be ``no longer necessary in 
the public interest.'' Accordingly, the Commission has begun a 
comprehensive 1998 biennial review of telecommunications and other 
regulations to promote ``meaningful deregulation and streamlining where 
competition or other considerations warrant such action.'' The Notice 
is thus undertaken in conjunction with the Commission's 1998 biennial 
regulatory review and in it the Commission asks, inter alia, whether 
and how the Commission can apply its section 11 deregulatory and 
streamlining mandate to remove or restructure existing regulations in 
order to promote technology testing.
    4. Alternatively, the Commission asks in the Notice whether it 
should and can

[[Page 35169]]

use its new forbearance authority to accomplish the same goal. New 
section 10 of the Communications Act requires the Commission to forbear 
from applying sections of the Act and its regulations to carriers and 
services upon satisfying a stated three-part test. Telecommunications 
carriers and classes of telecommunications carriers may file 
applications seeking such forbearance treatment. The Notice seeks 
comment on whether the Commission should undertake specific efforts to 
encourage or promote such forbearance applications relating to 
technology testing or, alternatively, should define a class of 
experimental services that would qualify for forbearance treatment.
    5. The Commission does not, however, limit the record of this 
proceeding to those alternatives. Rather, the Commission encourages 
commenters to offer any and all relevant and helpful suggestions to 
promote technology testing by regulated companies. Well-considered 
proposals to eliminate or streamline regulations governing technology 
testing would further the Commission's on-going pro-competition and 
pro-consumer regulatory mandate. In the last few decades, the 
telecommunications industry has experienced radical changes in its 
technologies, services, and markets. In response to these changes, the 
Commission has increasingly adopted policies that reflect the view that 
open entry and competition bring greater benefits to consumers and 
society than traditional regulation of markets dominated by one or a 
few carriers. Moreover, Congress in the 1996 Act has advanced this 
trend by aggressively promoting a new, competition-driven marketplace. 
New technologies and new applications of existing technologies will be 
critical in ensuring that the United States benefits from the 
competitive opportunities they will foster.
    6. The Commission seeks comment about the effect of its regulation 
on experiments involving new technology and on whether affirmative 
steps are necessary to further encourage and facilitate testing by 
removing regulatory barriers to such testing. The Commission believes 
that its regulatory processes should not unduly impede experiments in 
new technology, and asks commenters in this proceeding to discuss fully 
how current Commission regulatory practices might tend to promote or 
frustrate necessary and desirable technology testing. To this end, the 
Notice asks commenters to address comprehensively those requirements 
currently imposed pursuant to the Act, including all relevant 
Commission rules and requirements, on those firms seeking to conduct 
experiments.
    7. For example, under current requirements, depending on the nature 
of the technology or service to be tested, a firm seeking to conduct 
technical or market trials might be required to obtain several 
different approvals, including, e.g., a tariff authorization under 
section 203, a certificate under section 214, approvals of Comparably 
Efficient Interconnection (CEI) and Open Network Architecture (ONA) 
plans under the Computer III rules, a developmental or experimental 
radio license, as well as, in specific cases, waivers of various 
Commission rules. All of these rule requirements serve legitimate and, 
indeed, compelling regulatory ends under certain circumstances. Tariff 
requirements, for example, are one way to help ensure that ratepayers 
pay just and reasonable rates and do not suffer from unlawful 
discrimination. CEI and ONA plans help ensure that carriers do not 
prefer their own enhanced service operations to the detriment of 
competitive enhanced service providers. Radio licensing, inter alia, 
prevents radio frequency interference caused by and to co-channel and 
adjacent channel service providers. The Commission seeks comment 
regarding whether any existing rule requirements in these areas can be 
relaxed or avoided in the context of short-term experimental testing of 
new technology and new applications of existing technology.
    8. The Commission asks commenters to develop a specific record on 
how, from planning and regulatory perspectives, firms engage in 
experiments, including both technical trials and market trials of 
services using new technology. For example, commenters should indicate 
whether carriers must have particular authorizations in place prior to 
conducting technical or market trials of a service, or whether such 
authorization is only required prior to the commercial offering of a 
service. The Commission also seeks comment on the extent to which non-
carriers, i.e., equipment manufacturers or vendors, are responsible for 
technology testing and the extent to which these non-carriers are 
subject to any of the Commission's requirements in their testing of new 
technologies.
    9. Based on the inquiry described above, the Commission may 
determine that certain of its common carrier regulations impede testing 
and experimentation with new technologies and new applications of 
existing technologies. For that reason, the Commission explores 
possible alternative approaches to encourage and facilitate technology 
experiments, namely, using section 11(b) to create streamlined 
authorization procedures (based on current Part 5 procedures governing 
wireless test applications) and applying regulatory forbearance under 
section 10 of the Act to ``carve out'' exceptional treatment for 
qualified tests. By suggesting these alternatives the Commission does 
not preclude discussion of others, and encourages commenters to offer 
any and all relevant and helpful suggestions. The Commission seeks 
specific comment on the ramifications of allowing technology testing to 
be conducted through market trials, i.e., trials in which customers pay 
to obtain the service being tested. The Commission thinks that such 
market trials can be a useful way to develop ``real world'' information 
that is relevant to the introduction of new technology. At the same 
time, the Commission will in every case take steps to ensure that 
customers--including ratepayers of regulated carriers--do not 
improperly subsidize technology testing, and the Commission solicits 
comment on ways to ensure that the costs of such trials continue to be 
borne by shareholders.

II. Procedural Matters

A. Ex Parte Presentations

    10. Pursuant to Sec. 1.1204(b)(1) of the Commission's rules, the 
proceeding is exempt from the prohibitions and restrictions in the ex 
parte requirements.

B. Comment Filing Procedures

    11. General. Pursuant to applicable procedures set forth in 
Secs. 1.415 and 1.419 of the Commission's rules, 47 CFR 1.415, 1.419, 
interested parties shall file comments not later than July 21, 1998, 
and reply comments not later than August 5, 1998. To file formally in 
the proceeding, you must file an original and six copies of all 
comments, reply comments, and supporting comments. If you want each 
Commissioner to receive a personal copy of your comments, you must file 
an original and twelve copies. Comments and reply comments should be 
sent to the Secretary, Federal Communications Commission, 1919 M 
Street, NW, Room 222, Washington, DC 20554, with copies to: Thomas J. 
Beers, Common Carrier Bureau, Industry Analysis Division, 2033 M 
Street, NW, Room 500, Washington, DC 20554; Scott K. Bergmann, Common 
Carrier Bureau, Industry Analysis Division, 2033 M Street, NW, Room 
500, Washington, DC 20554. Parties should file one copy of any 
documents filed in this docket with the Commission's copy contractor,

[[Page 35170]]

International Transcription Services, Inc., 2100 M Street, NW, Suite 
140, Washington, DC 20037. Comments and reply comments will be 
available for public inspection during regular business hours in the 
FCC Reference Center, 1919 M Street, NW, Room 239, Washington, DC 
20554.
    12. Other requirements. Comments and reply comments must also 
comply with Sec. 1.49 and all other applicable sections of the 
Commission's rules. We also direct all interested parties to include 
the name of the filing party and the date of the filing on each page of 
their comments and reply comments.
    13. Commenters may also file informal comments or an exact copy of 
formal comments electronically via the Internet at: 
. Only 
one copy of electronically filed comments must be submitted. Commenters 
must note on the subject line whether an electronic submission is an 
exact copy of formal comments. Commenters also must include their full 
name and U.S. Postal Service mailing address in their submissions. 
Further information on the process of submitting comments 
electronically is available at that location and at <http://
www.fcc.gov/e-file>.
    14. Parties are also asked to submit comments and reply comments on 
diskette. Such diskette submissions would be in addition to and not a 
substitute for the formal filing requirements addressed above. Parties 
submitting diskettes should submit them to: Ms. Terry Conway, Common 
Carrier Bureau, Industry Analysis Division, 2033 M Street, NW, Room 
500, Washington, DC 20554. Such diskettes should be on a 3.5 inch 
diskette formatted in an IBM compatible format using WordPerfect 5.1 
for Windows software. The diskette should be submitted in ``read only'' 
mode. The diskette should be clearly labeled with the party's name, 
proceeding, type of pleading (comment or reply comments) and date of 
submission. The diskette should be accompanied by a cover letter.

III. Ordering Clauses

    15. Accordingly, it is ordered, pursuant to sections 1, 4(i), 7, 
10, 11, 218 and 403 of the Communications Act of 1934, as amended, 47 
U.S.C. sections 151, 154(i), 157, 160, 161, 218, 403, that notice is 
hereby given of the inquiry described above and that comment is sought 
on these issues.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 98-17079 Filed 6-26-98; 8:45 am]
BILLING CODE 6712-01-P