[Federal Register Volume 64, Number 208 (Thursday, October 28, 1999)]
[Notices]
[Pages 58060-58063]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-28204]


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FEDERAL COMMUNICATIONS COMMISSION


Public Information Collections Approved by Office of Management 
and Budget

October 22, 1999.
    The Federal Communications Commission (FCC) has received Office of 
Management and Budget (OMB) approval for the following public 
information collections pursuant to the Paperwork Reduction Act of 
1995, Public Law 104-13. An agency may not conduct or sponsor and a 
person is not required to respond to a collection of information unless 
it displays a currently valid control number. For further information 
contact Shoko B. Hair, Federal Communications Commission, (202) 418-
1379.

Federal Communications Commission

    OMB Control No.: 3060-0526.
    Expiration Date: 10/31/2002.
    Title: Density Pricing Zone Plans, Expanded Interconnection with 
Local Telephone Company Facilities--CC Docket No. 91-141.
    Form No.: N/A.
    Respondents: Business or other for-profit.
    Estimated Annual Burden: 13 respondents; 48 hours per response 
(avg.); 624 total annual burden hours for all collections.
    Estimated Annual Reporting and Recordkeeping Cost Burden: $0.
    Frequency of Response: On occasion.
    Description: Pursuant to Section 203 of the Communications Act, 
LECs are required to tariff communications service offerings with the 
Commission. Sections 201 and 202 of the Act require that all tariffed 
charges, practices, classifications, and regulations be just and 
reasonable and not unjustly or unreasonably discriminatory. The 
Commission concluded that it will allow LECs additional special access 
pricing flexibility for services subject to competition in any study 
area in which expanded interconnection offerings are operational. If 
they choose, LECs may file density pricing plans establishing systems 
of pricing zones. Rates for special access services subject to 
competition will be averaged within zones, but will be allowed to 
diverge between zones over time subject to a price cap mechanism. LECs 
will be permitted to lower the weighted average rate level in any zone 
by as much as 10 percent annually relative to the price cap index for 
the special access basket, or to raise the weighted average rate level 
in any zone by up to five percent annually relative to the price cap 
index for the special access basket, without triggering any of the 
additional cost justification or advance notice requirements contained 
in the price cap rules. Material supporting each LEC's density pricing 
plan is necessary to ensure that these plans generally reflect cost 
differences and foster fair competition. Absent the review of such 
information by the Commission, the LECs would have strong incentives to 
attempt to use this additional pricing flexibility in an 
anticompetitive manner. In the Switched Transport Expanded 
Interconnection Order, the Commission created a density zone pricing 
plan that allows some degree of deaveraging for switched transport 
services. The Commission concluded that relaxing the pricing rules in 
this manner would enable price cap LECs to respond to increased 
competition in the interstate switched transport market. For purposes 
of deaveraging services in the trunking basket, the Commission in the 
Fifth Report and Order issued in CC Docket No. 96-262, released August 
27, 1999, eliminates the limitations inherent in its current density 
zone pricing plan and allow price cap LECs to define the scope and 
number of zones within a study area, provided that each zone, except 
the highest-cost zone, accounts for at least fifteen percent of the 
incumbent LEC's trunking basket revenues in the study area. In 
addition, the Commission eliminates the requirement that LECs file zone 
pricing plans prior to filing their tariffs. The density pricing plan 
information is used by the FCC staff to ensure that the tariff rates to 
be paid for special access services are just, reasonable, and 
nondiscriminatory, as Sections 201 and 202 of the Communications Act 
require. The filing of density pricing plans is necessary to allow 
review of the number of zones and how offices were assigned to the 
different zones. The information is used to determine if the carriers 
have complied with our order on zone density. Without this information, 
the FCC would be unable to determine whether the rates for these 
services are just, reasonable, nondiscriminatory, and otherwise in 
accordance with the law. The density pricing plans are to be filed 
whenever a LEC voluntarily elects to implement additional special 
access pricing flexibility. Obligation to comply: Required to obtain or 
retain benefits.


[[Page 58061]]


    OMB Control No.: 3060-0760.
    Expiration Date: 10/31/2002.
    Title: Access Charge Reform--CC Docket No. 96-262, First Report and 
Order, Second Order on Reconsideration and Memorandum Opinion and 
Order, Third Report and Order, and Fifth Report and Order.
    Form No.: N/A.
    Respondents: Business or other for-profit.
    Estimated Annual Burden: 14 respondents; 4165 hours per response 
(avg.); 58,319 total annual burden hours for all collections.
    Estimated Annual Reporting and Recordkeeping Cost Burden: $8,000.
    Frequency of Response: On occasion.
    Description: In the Fifth Report and Order (Order), CC Docket No. 
96-262, Access Charge Reform, released August 27, 1999, the Commission 
is modifying the rules that govern the provision of interstate access 
services by those price cap LECs subject to price regulation to advance 
the pro-competitive, de-regulatory national policies embodied in the 
Telecommunications Act of 1996. The pricing flexibility framework 
adopted in the Order is designed to grant greater flexibility to price 
cap LECs as competition develops, while ensuring that: (1) Price cap 
LECs do not use pricing flexibility to deter efficient entry or engage 
in exclusionary pricing behavior; and (2) price cap LECs do not 
increase rates to unreasonable levels for customers that lack 
competitive alternatives.
    a. Showings under the Market-Based Approach: In the Fifth Report 
and Order, the Commission provides detailed rules for implementing the 
market-based approach, pursuant to which price cap LECs would receive 
pricing flexibility in the provision of interstate access services as 
competition for those services develops. The Order grants immediate 
pricing flexibility to price cap LECs in the form of streamlined 
introduction of new services, geographic deaveraging of rates for 
services in the trunking basket, and removal of certain interstate 
interexchange services from price cap regulation. The Order also 
provides for additional pricing flexibility, to be granted in two 
phases, that is contingent upon competitive showings. To obtain Phase I 
relief, price cap LECs must demonstrate that competitors have made 
irreversible, sunk investments in the facilities needed to provide the 
services at issue. For instance, for dedicated transport and special 
access services, price cap LECs must demonstrate that unaffiliated 
competitors have collocated in at least 15 percent of the LEC's wire 
centers within an MSA or collocated in wire centers accounting for 30 
percent of the LEC's revenues from these services within an MSA. Higher 
thresholds apply, however, for channel terminations between a LEC end 
office and an end user customer. In that case, the LEC must demonstrate 
that unaffiliated competitors have collocated in 50 percent of the 
price cap LEC's wire centers within an MSA or collocated in wire 
centers accounting for 65 percent of the price cap LEC's revenues from 
this service within an MSA. For traffic-sensitive, common line, and the 
traffic-sensitive components of tandem-switched transport services, a 
LEC must show that competitors offer service over their own facilities 
to 15 percent of the price cap LEC's customer locations within an MSA. 
Phase I relief permits price cap LECs to offer, on one day's notice, 
volume and term discounts and contract tariffs for these services, so 
long as the services provided pursuant to contract are removed from 
price caps. To obtain Phase II relief, price cap LECs must demonstrate 
that competitors have established a significant market presence (i.e., 
that competition for a particular service within the MSA is sufficient 
to preclude the incumbent from exploiting any individual market power 
over a sustained period) for provision of the services at issue. Phase 
II relief for dedicated transport and special access services is 
warranted when a price cap LEC demonstrates that unaffiliated 
competitors have collocated in at least 50 percent of the LEC's wire 
centers within an MSA or collocated in wire centers accounting for 65 
percent of the LEC's revenues from these services within an MSA. Again 
a higher threshold applies to channel terminations between a LEC end 
office and an end user customer. In that case, a price cap LEC must 
show that unaffiliated competitors have collocated in 65 percent of the 
LEC's wire centers within an MSA or collocated in wire centers 
accounting for 85 percent of the LEC's revenues from this service 
within an MSA. Phase II relief permits price cap LECs to file tariffs 
for these services on one day's notice, free from both our Part 61 rate 
level and our Part 69 rate structure rules. See also 47 CFR Sections 
1.774, 69.707, 69.709, 69.711, 69.713, 69.725, 69.727, 69.729. (No. of 
respondents: 13; hours per response: 2117; total annual burden: 27,520 
hours).
    b. Cost Study of Interstate Access Service That Remain Subject to 
Price Cap Regulation: The 1996 Act has created an unprecedented 
opportunity for competition to develop in local telephone markets. The 
Commission recognizes, however, that competition is unlikely to develop 
at the same rate in different locations, and that some services will be 
subject to increasing competition more rapidly than others. The 
Commission also recognizes, however, that there will be areas and 
services for which competition may not develop. The Commission will 
adopt a prescriptive ``backdrop'' to our market-based approach that 
will serve to ensure that all interstate access customers receive the 
benefits of more efficient prices, even in those places and for those 
services where competition does not develop quickly. To implement our 
backstop to market-based access charge reform, we require each 
incumbent price cap LEC to file a cost study no later than February 8, 
2001, demonstrating the cost of providing those interstate access 
services that remain subject to price cap regulation because they do 
not face substantial competition. (No. of respondents: 13; hours per 
response: 8; total annual burden 104 hours).
    c. Tariff Filings: In the First Report and Order, the Commission 
requires the filing of various tariffs, with modifications. For 
example, the FCC directs incumbent LECs to establish separate rate 
elements for the multiplexing equipment on each side of the tandem 
switch. LECs must establish a flat-rated charge for the multiplexers on 
the SWC side of the tandem, imposed pro-rata on the purchasers of the 
dedicated trunks on the SWC side of the tandem. Multiplexing equipment 
on the EO-to-tandem transport on a per-minute of use basis. These 
multiplexer rate elements must be included in the LEC access tariff 
filings to be effective January 1, 1998. In the Second Order on 
Reconsideration, the FCC clarifies that the TIC exemption for access 
customers using competitive transport providers only applies to that 
portion of the residual per-minute TIC that is related to transport 
facilities, and directs incumbent local exchange carriers to include, 
in their access tariff filing, the amount of per-minute transport 
interconnection charge (TIC) they anticipate will be allocated to 
facilities-based rate elements in the future. (No. of respondents: 13; 
hours per response 35 hours; total annual burden: 455 hours).
    d. Third-Party Disclosure: In the Second Order on Reconsideration, 
the Commission requires LEC to provide IXCs with customer-specific 
information about how many and what type of presubscribed interexchange 
carrier charges (PICCs) they are assessing for each of the IXC's 
presubscribed customers. One of the primary goals of

[[Page 58062]]

our First Report and Order was to develop a cost-recovery mechanism 
that permits carriers to recover their costs in a manner that reflects 
the way in which those costs are incurred. Without access to 
information that indicates whether the LEC is assessing a primary or 
non-primary residential PICC, or about how many local business lines 
are presubscribed to a particular IXC, the IXC will be unable to 
develop rates that accurately reflect the underlying costs. (No. of 
respondents: 14; hours per response: 35 hours; total annual burden 455 
hours).
    e. Contract-based Tariff Filings: Price cap LECs who have made a 
Phase I showing may now offer contract-based tariffs. Contract-based 
tariffs enable price cap LECs to tailor services to their customers' 
individual needs, but also prevent targeting by requiring that price 
cap LECs make contract tariffs available to all similarly situated 
customers. See 47 CFR Sections 61.55 and 69.727. (No. of respondents: 
13; hours per response: 3 hours; total annual burden: 780 hours).
    In the Further Notice of Proposed Rulemaking issued in CC Docket 
No. 96-262, released August 27, 1999, the Commission seeks comment on 
whether to permit incumbent LECs to deaverage common line and traffic 
sensitive access elements without a competitive showing. To the extent 
that parties advocate conditioning deaveraging upon satisfaction of a 
competitive showing, the Commission seeks comment on the appropriate 
showing and the procedure by which evidence be presented and evaluated.
    f. Proposed Deaveraging of Common Line and Traffic Sensitive Access 
Elements: Deaveraging common line and traffic sensitive access elements 
would require at least one additional tariff filing and may require an 
additional competitive showing. (No. of respondents: 13; hours per 
response: 109 hours; total annual burden: 1420 hours).
    g. Proposed Common line and Traffic Sensitive Phase II Showings: 
Incumbent LECs seeking pricing flexibility for switched services may be 
required to file a petition demonstrating that it has met the triggers, 
and make an initial tariff filing. (No. of respondents: 13; hours per 
response: 1984 hours; total annual burden: 25,800).
    The Commission's authority to collect this information is provided 
under 47 U.S.C 201-205 and 303(r). The information to be collected 
would be submitted to the FCC by incumbent LECs for use in determining 
whether the incumbent LECs should receive the regulatory relief 
proposed in the Orders. The information collected under the Second 
Order on Reconsideration and Memorandum Opinion and Order would be 
submitted by the LECs to the interexchange carriers (IXCs) for use in 
developing the most cost-efficient rates and rate structures. 
Obligation to comply: Mandatory.

    OMB Control No.: 3060-0770.
    Expiration Date: 10/31/2002.
    Title: Price Cap Performance Review for Local Exchange Carriers--CC 
Docket No. 94-1 (New Services).
    Form No.: N/A.
    Respondents: Business or other for-profit.
    Estimated Annual Burden: 13 respondents; 10 hours per response 
(avg.); 130 total annual burden hours for all collections.
    Estimated Annual Reporting and Recordkeeping Cost Burden: $0.
    Frequency of Response: On occasion.
    Description: In the Fifth Report and Order, issued in CC Docket 
Nos. 96-262 and 94-1, released August 27, 1999, the Commission permits 
price cap LECs to introduce new services on a streamlined basis, 
without prior approval. The Commission modified the rules to eliminate 
the public interest showing required by Section 69.4(g) and to 
eliminate the new services test (except in the case of loop-based new 
services) required under Sections 61.49(f) and (g). These modifications 
will eliminate the delays that now exist for the introduction of new 
services as well as encourage efficient investment and innovation. The 
Commission's authority to collect this information is provided under 47 
U.S.C. Section 203. The information collected would be submitted to the 
Commission by an incumbent LEC for use in determining whether it is in 
the public interest for the incumbent LEC to offer a proposed new 
switched access service. Obligation to comply: Required to obtain or 
retain benefits.

    OMB Control No.: 3060-0907.
    Expiration Date: 04/30/2002.
    Title: Universal Service Amendment Worksheets.
    Form No.: FCC Form 457(M) and FCC Form 499-S(M).
    Respondents: Business or other for-profit.
    Estimated Annual Burden: 100 respondents; 2 hours per response 
(avg.); 200 total annual burden hours for all collections.
    Estimated Annual Reporting and Recordkeeping Cost Burden: $0.
    Frequency of Response: One-time requirement.
    Description: On May 8, 1997, the Commission issued the Universal 
Service Order, implementing the universal service provisions in Section 
254 of the Communications Act of 1934, as amended and setting forth a 
plan to fulfill the universal service goals established by Congress. In 
the Universal Service Order, the Commission announced its plan for 
establishing a system of universal service support for rural, insular, 
and high cost areas that will replace the existing high-cost support 
mechanisms and implicit federal subsidies with explicit, competitively-
neutral federal universal service support mechanisms. Pursuant to the 
Act, the Commission also adopted rules to ensure that quality services 
are available to low-income consumers at affordable rates. In addition, 
the Commission adopted rules creating new support mechanisms to promote 
universal service for eligible schools and libraries, and rural health 
care providers, as mandated by Congress in the Act. Finally, the 
Commission modified its existing funding methods, so that funding for 
the support mechanisms is not generated exclusively through charges on 
long distance carriers. Instead, as the statute requires, the new 
universal service rules require equitable and nondiscriminatory 
contributions from all telecommunications carriers that provide 
interstate telecommunications services, as well as other providers of 
interstate telecommunications to the extent that the Commission 
determines that their contributions would serve the public interest. On 
July 30, 1999, a three-judge panel of the United States Court of 
Appeals for the Fifth Circuit issued a decision affirming in part, 
remanding in part, and reversing in part the Commission's May 8, 1997 
Universal Service Order. Several of the court's rulings in that 
decision affect the assessment and recovery of universal service 
contributions. In light of the court's ruling, the Commission amends 
sections 54.706 and 54.709 of its rules in the Universal Service Remand 
Order, released October 8, 1999, to provide for a single contribution 
base for purposes of funding all of the universal service support 
mechanisms. Specifically, in response to the court's determination that 
the Commission lacks jurisdiction to assess providers' intrastate 
revenues, we have eliminated intrastate revenues from the contribution 
base. Consistent with the court's ruling, we also reconsider the basis 
for assessing the international revenues of interstate providers. The 
Commission is requiring each contributor that qualifies for the 
international revenues exception adopted in the Universal Service

[[Page 58063]]

Remand Order to file an amendment to its March 1999 and September 1999 
worksheets, identifying the amount and percentages of the contributor's 
interstate and international revenues. This information is to be filed 
on FCC Form 457(M) and/or FCC Form 499-S(M). Amendment to March 1999 
Universal Service Worksheet, FCC Form 457(M) and Amendment to September 
1999 Telecommunications Reporting Worksheet, FCC Form 499-S(M) simply 
require contributors to identify the amounts and percentages of their 
interstate and international revenues and will only apply to the 
revenue data provided on the March 1999 and September 1999 Worksheet. 
Contributors that qualify for the international revenues exception must 
file the amendment forms with USAC by December 1, 1999. Copies of the 
forms may be downloaded from the Commission's forms Web page, 
www.fcc.gov/formpage.html. The form is also available through the FCC 
Fax-on-Demand system. Copies may be order via fax 24 hours a day by 
calling 202-418-0177 from the handset of any fax machine. The document 
retrieval number for the FCC Form 475(M) is 0004571; the document 
retrieval number for the FCC Form 499-S(M) is 0004993. The files 
contain both the instructions and the forms. Follow the system voice 
prompts and enter the document retrieval number when requested. Due to 
the limited number of phone lines into the forms Fax-on-Demand system, 
callers may wish to call during non-business hours. If you have 
difficulty with the transmission of your fax contact Patricia Quartey 
at 202-418-0212. Finally, copies may be obtained from the USAC at (973) 
560-4400. Obligation to comply: Mandatory. Public reporting burden for 
the collections of information is as noted above. Send comments 
regarding the burden estimate or any other aspect of the collections of 
information, including suggestions for reducing the burden to 
Performance Evaluation and Records Management, Washington, DC 20554.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 99-28204 Filed 10-27-99; 8:45 am]
BILLING CODE 6712-01-P