[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]
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