[Federal Register Volume 64, Number 141 (Friday, July 23, 1999)]
[Rules and Regulations]
[Pages 39938-39940]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18765]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1 and 63

[CC Docket No. 97-11; FCC 99-104]


Section 214 Deregulated Entry Requirements and Streamlined Exit 
Requirements for Domestic Telecommunications Common Carriers

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: The Commission has adopted rules that de-regulate market entry 
and streamline market exit filing requirements, under section 214 of 
the Communications Act of 1934. The rules confer ``blanket'' section 
214 certification for new lines of all domestic carriers, exempt line 
extensions and video programming services from section 214 
requirements, and provide that all section 214 applications to 
discontinue domestic service will be automatically granted unless the 
Commission notifies the applicants otherwise. The Commission's action 
also grants the substance of the section 214 regulatory relief 
requested by the Independent Telephone and Telecommunications Alliance 
in its forbearance petition and extends that relief to all domestic 
carriers.

DATES: Effective August 23, 1999.

FOR FURTHER INFORMATION CONTACT: Marty Schwimmer, 202-418-2334.

SUPPLEMENTARY INFORMATION:
    1. Section 214 of the Communications Act of 1934 requires common 
carriers to obtain Commission approval for the construction, 
acquisition, or operation of lines of communication (entry 
certification) and for the discontinuance of service to a community 
(exit certification). The FCC implements the section 214 requirements 
with its rules at 47 CFR part 63 and related rules of practice at 47 
CFR part 1. The Telecommunications Act of 1996 exempted from section 
214 line extensions and video programming systems, under section 
402(b)(2)(A) (codified as a Note to section 214) and under Section 
302(a) (codified as section 651), respectively. The 1996 Act also 
enabled the Commission to forbear from enforcing provisions of the Act, 
codified as Section 10 of the Act.
    2. In 1997, the Commission released an NPRM proposing to modify its 
rules at 47 CFR part 63 to implement these changes, entitled 
Implementation of Section 402(b)(2)(A) of the Telecommunications Act of 
1996, Notice of Proposed Rulemaking, CC Docket No. 97-11, 12 FCC Rcd 
1111 (1997), 62 FR 4965 (February 3, 1997). The Commission proposed to 
(1) codify the statutory exemptions, (2) forbear from enforcing the 
section 214 entry certification requirements for some carriers; and (3) 
streamline its exit certification rules. The Commission also sought 
comment on alternatives, including whether to streamline the section 
214 entry certification procedures, which would include granting 
blanket authority rather than forbearing from enforcing section 214. On 
February 17, 1998, the Independent Telephone and Telecommunications 
Alliance (ITTA) filed a petition seeking forbearance from section 214 
entry certification requirements for its members.
    3. The Commission has revised 47 CFR parts 1 and 63, in a Report 
and Order released June 30, 1999, in Docket No. 97-11. In the same 
document, it has also granted the substance of the section 214 relief 
sought by ITTA, in a Memorandum Opinion and Order in AAD File No. 98-
43. The revised rules confer section 214 authorization for new lines of 
all domestic carriers, so that no applications need be filed, codify 
the statutory exemptions from section 214 authorization for line 
extensions and video programming systems, and provide that all 
applications for section 214 authorization to discontinue service will 
be approved automatically, in 31 days for non-dominant carriers and 60 
days for dominant carriers, unless the Commission notifies the carriers 
otherwise.
    4. The Commission's purpose in conferring blanket section 214 
authority for new lines of all carriers, rather than forbearing from 
exercising its section 214 jurisdiction for only some carriers, is to 
deregulate and promote competition in domestic market entry. At the 
same time, with blanket authority, unlike forbearance, the Commission 
retains the ability to stop extremely abusive practices against 
consumers by withdrawing the section 214 authorization that allows the 
abusive carrier to operate.
    5. The Commission's purpose in automatically granting all domestic 
discontinuance applications of dominant carriers as well as non-
dominant carriers is, similarly, to reduce regulatory exit burdens and 
advance Congress' pro-competitive and de-regulatory policies. The 
Commission recognizes that carriers assume a certain amount of risk in 
entering a new market and that, if there are significant barriers to 
exit, a carrier may be reluctant to assume these risks and may choose 
not to enter the market. At the same time, the Commission also 
recognizes that even customers with competitive alternatives need fair 
notice and information to choose a substitute service, and that by 
requiring applications to be filed and notice to be given to all 
customers, unlike de-regulating exit procedures by eliminating filing 
and notice requirements altogether, subscribers will have adequate 
opportunity to comment on whether substitute service is available.

List of Subjects

47 CFR Part 1

    Administrative practice and procedure.

47 CFR Part 63

    Communications common carriers, Reporting and recordkeeping 
requirements, Telegraph, Telephone.


[[Page 39939]]


Federal Communications Commission.
Magalie Roman Salas,
Secretary.

Rule Changes

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR parts 1 and 63 as follows:

PART 1--PRACTICE AND PROCEDURE

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

    Authority: 47 U.S.C. 151, 154, 207, 303, and 309(j), unless 
otherwise noted.

    2. Section 1.763 is amended by revising the first sentence in 
paragraph (b) to read as follows:


Sec. 1.763  Construction, extension, acquisition or operation of lines.

* * * * *
    (b) In cases under this section requiring a certificate, notice is 
given to and a copy of the application is filed with the Secretary of 
Defense, the Secretary of State (with respect to such applications 
involving service to foreign points), and the Governor of each State 
involved. * * *

PART 63--EXTENSION OF LINES, NEW LINES, AND DISCONTINUANCE, 
REDUCTION, OUTAGE AND IMPAIRMENT OF SERVICE BY COMMON CARRIERS; AND 
GRANTS OF RECOGNIZED PRIVATE OPERATING AGENCY STATUS

    3. The part heading is revised as set out above.
    4. The authority citation for part 63 is revised to read as 
follows:

    Authority: Sections 1, 4(i), 4(j), 10, 11, 201-205, 214, 218, 
403 and 651 of the Communications Act of 1934, as amended, 47 U.S.C. 
151, 154(i), 154(j), 160, 201-205, 214, 218, 403, and 571, unless 
otherwise noted.


Secs. 63.01 through 63.03  [Removed]

    5. Sections 63.01 through 63.03 are removed.


Secs. 63.05 and 63.06  [Removed]

    6. Sections 63.05 and 63.06 are removed.


Sec. 63.08  [Removed]

    7. Section 63.08 is removed.
    8. Section 63.07 is redesignated as Sec. 63.01 and is revised to 
read as follows:


Sec. 63.01  Authority for all domestic common carriers.

    (a) Any party that would be a domestic interstate communications 
common carrier is authorized to provide domestic, interstate services 
to any domestic point and to construct, acquire, or operate any 
domestic transmission line as long as it obtains all necessary 
authorizations from the Commission for use of radio frequencies. This 
authority does not apply to acquisitions of corporate control, which 
are not limited to acquisitions of equity ownership, such as stock or 
partnership interests, and which include actual working control by 
whatever manner exercised (such as, for example, by veto power, 
controlling interest in a board of directors, or other shareholder 
agreement provisions).
    (b) Domestic common carriers subject to this section shall not 
engage in any line construction that may have a significant effect on 
the environment as defined in Sec. 1.1307 of this chapter without prior 
compliance with the Commission's environmental rules. See Sec. 1.1312 
of this chapter.
    9. New Sec. 63.02 is added to read as follows:


Sec. 63.02  Exemptions for extensions of lines and for systems for the 
delivery of video programming.

    (a) Any common carrier is exempt from the requirements of section 
214 of the Communications Act of 1934, as amended, for the extension of 
any line.
    (b) A common carrier shall not be required to obtain a certificate 
under section 214 of the Communications Act of 1934 with respect to the 
establishment or operation of a system for the delivery of video 
programming.
    10. Section 63.04 is redesignated as Sec. 63.25 and the section 
heading is revised to read as follows:


Sec. 63.25  Special provisions relating to temporary or emergency 
service by international carriers.

    11. Section 63.52 is amended by revising the section heading and 
paragraph (b) to read as follows:


Sec. 63.52  Copies required; fees; and filing periods.

* * * * *
    (b) No application accepted for filing and subject to part 63 of 
these rules, unless provided for otherwise, shall be granted by the 
Commission earlier than 30 days following issuance of public notice by 
the Commission of the acceptance for filing of such application or any 
major amendment unless said public notice specifies another time 
period.
* * * * *
    12. Section 63.71 is revised to read as follows:


Sec. 63.71  Procedures for discontinuance, reduction or impairment of 
service by domestic carriers.

    Any domestic carrier that seeks to discontinue, reduce or impair 
service shall be subject to the following procedures:
    (a) The carrier shall notify all affected customers of the planned 
discontinuance, reduction, or impairment of service and shall notify 
and submit a copy of its application to the public utility commission 
and to the Governor of the State in which the discontinuance, 
reduction, or impairment of service is proposed, and also to the 
Secretary of Defense, Attn. Special Assistant for Telecommunications, 
Pentagon, Washington, DC 20301. Notice shall be in writing to each 
affected customer unless the Commission authorizes in advance, for good 
cause shown, another form of notice. Notice shall include the 
following:
    (1) Name and address of carrier;
    (2) Date of planned service discontinuance, reduction or 
impairment;
    (3) Points of geographic areas of service affected;
    (4) Brief description of type of service affected; and
    (5) One of the following statements:
    (i) If the carrier is non-dominant with respect to the service 
being discontinued, reduced or impaired, the notice shall state:

    The FCC will normally authorize this proposed discontinuance of 
service (or reduction or impairment) unless it is shown that 
customers would be unable to receive service or a reasonable 
substitute from another carrier or that the public convenience and 
necessity is otherwise adversely affected. If you wish to object, 
you should file your comments within 15 days after receipt of this 
notification. Address them to the Federal Communications Commission, 
Washington, DC 20554, referencing the Sec. 63.71 Application of 
(carrier's name). Comments should include specific information about 
the impact of this proposed discontinuance (or reduction or 
impairment) upon you or your company, including any inability to 
acquire reasonable substitute service.

    (ii) If the carrier is dominant with respect to the service being 
discontinued, reduced or impaired, the notice shall state:

    The FCC will normally authorize this proposed discontinuance of 
service (or reduction or impairment) unless it is shown that 
customers would be unable to receive service or a reasonable 
substitute from another carrier or that the public convenience and 
necessity is otherwise adversely affected. If you wish to object, 
you should file your comments within 30 days

[[Page 39940]]

after receipt of this notification. Address them to the Federal 
Communications Commission, Washington, DC 20554, referencing the 
Sec. 63.71 Application of (carrier's name). Comments should include 
specific information about the impact of this proposed 
discontinuance (or reduction or impairment) upon you or your 
company, including any inability to acquire reasonable substitute 
service.

    (b) The carrier shall file with this Commission, on or after the 
date on which notice has been given to all affected customers, an 
application which shall contain the following:
    (1) Caption--``Section 63.71 Application'';
    (2) Information listed in Sec. 63.71(a) (1) through (4) above;
    (3) Brief description of the dates and methods of notice to all 
affected customers;
    (4) Whether the carrier is considered dominant or non-dominant with 
respect to the service to be discontinued, reduced or impaired; and
    (5) Any other information the Commission may require.
    (c) The application to discontinue, reduce or impair service, if 
filed by a domestic, non-dominant carrier, shall be automatically 
granted on the 31st day after its filing with the Commission without 
any Commission notification to the applicant unless the Commission has 
notified the applicant that the grant will not be automatically 
effective. The application to discontinue, reduce or impair service, if 
filed by a domestic, dominant carrier, shall be automatically granted 
on the 60th day after its filing with the Commission without any 
Commission notification to the applicant unless the Commission has 
notified the applicant that the grant will not be automatically 
effective. For purposes of this section, an application will be deemed 
filed on the date the Commission releases public notice of the filing.

[FR Doc. 99-18765 Filed 7-21-99; 8:45 am]
BILLING CODE 6712-01-P