[Federal Register Volume 65, Number 51 (Wednesday, March 15, 2000)]
[Proposed Rules]
[Pages 13933-13935]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-6425]



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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1, 54, 61, and 69

[CC Docket Nos. 96-262; 94-1; 99-249; 96-45; FCC 99-235]


Access Charge Reform, Price Cap Performance Review for Local 
Exchange Carriers, Low-Volume Long Distance Users, and Federal-State 
Joint Board on Universal Service

AGENCY: Federal Communications Commission.

ACTION: Proposed rule: comments requested.

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SUMMARY: The Federal Communications Commission (FCC) issued a notice of 
proposed rulemaking regarding the modified integrated universal service 
and access charge reform proposal (modified proposal) submitted by the 
Coalition for Affordable Local and Long Distance Service (CALLS). After 
inter alia reviewing the comments and reply comments in response to the 
original integrated universal service and access charge reform 
proposal, the CALLS members submitted a modified proposal. As indicated 
in this proposed rule, interested parties may file comments and reply 
comments regarding the modified proposal.

DATES: Submit comments on or before March 30, 2000. Submit reply 
comments on or before April 13, 2000.

ADDRESSES: Submit electronic comments and other data to http://www.fcc.gov.e-file/ecfs.html. See SUPPLEMENTARY INFORMATION for file 
formats and other information about electronic filing.
    Submit paper copies to the Commission's Secretary, Magalie Roman 
Salas, Office of the Secretary, Federal Communications Commission, 445 
12th, S.W., TW-A325, Washington, D.C. 20554. See SUPPLEMENTARY 
INFORMATION for information on additional instructions for filing paper 
copies.

FOR FURTHER INFORMATION CONTACT: Joi Roberson Nolen, 202-418-1537.

SUPPLEMENTARY INFORMATION: By this Notice the Commission invites 
supplemental comment on the proposal of the Coalition for Affordable 
Local and Long Distance Service (CALLS) for universal service and 
interstate access charge reform. CALLS submitted its original proposal 
on July 29, 1999. On September 15, 1999, the Commission released a 
Notice of Proposed Rulemaking (NPRM) seeking comment on whether the 
Commission should adopt all or some portion of the CALLS proposal, or 
an alternative plan. See Access Charge Reform, Low-Volume Long Distance 
Users, Federal-State Joint Board on Universal Service, CC Docket Nos. 
96-262, 94-1, 99-249 and 96-45, Notice of Proposed Rulemaking, FCC 99-
235 (rel. Sept. 15, 1999) 64 FR 53648, Oct. 4, 1999. On March 8, 2000, 
the CALLS members filed a written ex parte submission containing a 
modified version of the proposal (modified proposal). A copy of the 
submission is available for inspection and copying during the weekday 
hours of 9:00 a.m. to 4:30 p.m. in the Commission's Reference Center, 
445 12th St. S.W., Room CY-A257, Washington, D.C. or copies may be 
purchased from the Commission's duplicating contractor, ITS Inc. 1231 
20th St. N.W., Washington D.C. 20036; (202) 857-3088. The complete text 
of the Notice including the modified proposal also may be obtained 
through the Worldwide Web, at http://www.fcc.gov. The Commission seeks 
comment on whether it should adopt all or some portion of the modified 
proposal.
    In separate letters, the CALLS long-distance signatories have made 
a number of commitments to consumers with respect to the ways in which 
they would pass on the benefits they would receive if CALLS were 
adopted. Copies of the AT&T and Sprint letters, which were filed as 
written ex parte submissions on February 25, 2000, are available for 
inspection and copying during the weekday hours of 9:00 a.m. to 4:30 
p.m. in the Commission's Reference Center, 445 12th St. S.W., Room CY-
A257, Washington, D.C. or copies may be purchased from the Commission's 
duplicating contractor, ITS Inc. 1231 20th St. N.W., Washington D.C. 
20036; (202) 857-3088. As noted, the complete text of the Notice 
including the letters also may be obtained through the Worldwide Web, 
at http://www.fcc.gov. The Commission seeks comment on the commitments 
made in these letters, and how the Commission should enforce them.

Regulatory Flexibility Analysis

    The NPRM in this proceeding contained an Initial Regulatory 
Flexibility Analysis (IRFA) as required by the Regulatory Flexibility 
Act (RFA). See 5 U.S.C. 603; see also 5 U.S.C. 601 et seq., as amended 
by the Contract with America Advancement Act of 1996, Public Law 104-
121, 110 Stat. 847 (1996) (CWAA). Title II of the CWAA is the Small 
Business Regulatory Enforcement Fairness Act of 1996 (SBREFA). This 
Notice sets forth substitute rules for those contained in the NPRM. The 
IRFA is therefore revised as follows.
    As required by the RFA, this IRFA of the possible significant 
economic impact on small entities by the proposals in this Notice has 
been prepared. Written public comments are requested on the IRFA. These 
comments must be filed in accordance with the same filing deadlines as 
comments on the rest of this Notice, and should have a separate and 
distinct heading designating them as responses to the IRFA, to the 
Chief Counsel for Advocacy of the Small Business Administration (SBA) 
in accordance with the RFA. See 5 U.S.C. 603(a).

Legal Basis

    This rulemaking action is supported by sections 4(i), 4(j), 201-
205, 254, and 403 of the Communications Act of 1934, as amended, 47 
U.S.C. 154(i), 154(j), 201-205, 254, and 403.

Description and Estimate of the Number of Small Entities to Which 
the Notice will Apply

    The RFA generally defines the term ``small entity'' as having the 
same meaning as the term ``small business.'' In addition, the term 
``small business'' has the same meaning as the term ``small business 
concern'' under the Small Business Act unless the Commission has 
developed one or more definitions that are appropriate for its 
activities. See 5 U.S.C. 601 (3) (incorporating by reference the 
definition of ``small business concern'' in 15 U.S.C. 632). A small 
business concern is one which: (1) Is independently owned and operated; 
(2) is not dominant in its field of operation; and (3) meets any 
additional criteria established by the SBA. The SBA has defined a small 
business for Standard Industrial Classification (SIC) category 4813 
(Telephone Communications, Except Radiotelephone) to be a small entity 
that has no more than 1500 employees. See 13 CFR 121.201.

Total Number of Telephone Companies Affected

Price Cap Local Exchange Carriers

    The Commission does not have data specifying the number of these 
carriers that are either dominant in their field of operations, are not 
independently owned and operated, or have more than 1,500 employees, 
and thus is unable at this time to estimate with greater precision the 
number of price cap LECs that would qualify as small business concerns 
under the SBA's definition. However, there are only 13 price cap LECs. 
Consequently, significantly fewer than 13 providers of local exchange 
service are estimated to be small entities

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or small price cap LECs that may be affected by these proposals. 
Although small price cap LECs have been included in this RFA analysis, 
this RFA action has no effect on Commission analyses and determinations 
in other, non-RFA contexts. In particular, treatment here of small 
price cap LECs as ``non-dominant'' for SBA size standards has no effect 
on Commission determinations of ``dominance'' in other, common carrier, 
contexts.

Competitive Local Exchange Carriers

    Neither the Commission nor the SBA has developed a definition of 
small providers of local exchange service. The closest applicable 
definition under SBA rules is for telephone telecommunications 
companies other than radiotelephone (wireless) companies. See Standard 
Industrial Classification (SIC) Code 4813. The most reliable source of 
information regarding the number of competitive LECs nationwide of 
which the Commission is aware appears to be the data that the 
Commission collects annually in connection with the Telecommunications 
Relay Service (TRS). According to the Commission's most recent data, 
129 companies reported that they were engaged in the provision of 
either competitive access provider services or competitive local 
exchange carrier services. See FCC, Common Carrier Bureau, Carrier 
Locator: Interstate Service Providers, Figure 1 (number of carriers 
paying into the TRS Fund by type of carrier) (Jan. 1999). The 
Commission does not have data specifying the number of these carriers 
that are either dominant in their field of operations, are not 
independently owned and operated, or have more than 1,500 employees, 
and thus is unable at this time to estimate with greater precision the 
number of competitive LECs that would qualify as small business 
concerns under the SBA's definition. Consequently, the Commission 
estimates that fewer than 129 providers of local exchange service are 
small entities or small competitive LECs that may be affected by these 
proposals.

Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements

    The revised CALLS proposal would require price cap LECs to file 
with the Universal Service Administration Corporation (USAC) additional 
information pertaining to line counts by zone and customer class, 
revenue data, and information regarding zone boundaries. Competitive 
LECs would also have to file with USAC line counts by zone and customer 
class. The filings are on a quarterly basis. Otherwise, it is not clear 
whether, on balance, the proposals will increase or decrease price cap 
LECs' administrative burdens.

Steps Taken To Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered

    The proposals made by CALLS could have varying positive or negative 
impacts on price cap LECs, including any such small carriers. The 
alternative to consideration of adopting the CALLS proposal at this 
time would be to continue in effect the existing access charge and 
universal service fund rules. Public comments is welcomed on 
modifications of the CALLS proposal rules that would reduce any 
potential impacts on small entities. Specifically, suggestions are 
sought on different compliance or reporting requirements that take into 
account the resources of small entities; clarification, consolidation, 
or simplification of compliance and reporting requirements for small 
entities subject to the rules; and whether waiver or forbearance from 
the rules for small entities is feasible or appropriate. Comments 
should be supported by specific economic analysis.

Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rules

    None.

Paperwork Reduction Act

    The NPRM released September 15, 1999 contained either a proposed or 
modified information collection. As part of its continuing effort to 
reduce the paperwork burden, the Commission invites the general public 
and the Office of Management and Budget (OMB) to take this opportunity 
to comment on the following information collections contained in the 
proposal published in the NPRM as modified by the modified proposal 
herein, as required by the Paperwork Reduction Act of 1995, Public Law 
104-13. Public and agency comments are due at the same time as other 
comments on the Notice; OMB comments are due 60 days from the date of 
publication of the Notice in the Federal Register. Comments are 
requested concerning (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) estimates of the collection burden; (c) ways to enhance 
the quality, utility, and clarity of the information collected; 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.

Filing Comments

    Pursuant to Secs. 1.415 and 1.419 of the Commission's rules, 47 CFR 
1.415, 1.419, interested parties may file comments on or before March 
30, 2000. Interested parties may file reply comments on or before April 
13, 2000. Comments may be filed using the Commission's Electronic 
Comment Filing System (ECFS) or by filing paper copies. See Electronic 
Filing Documents in Rulemaking Proceedings, 63 FR 24,121 (May 1,1998).
    Comments filed through the ECFS can be sent as an electronic file 
via the Internet to http://www.fcc.gov.e-file/ecfs.html>. Commenters 
must transmit one electronic copy of the comments to each docket or 
rulemaking number referenced in the caption. In completing the 
transmittal screen, commenters should include their full name, Postal 
Service mailing address, and the applicable docket or rulemaking 
number. Parties may also submit an electronic comment by Internet e-
mail. To get filing instructions for e-mail comments, commenters should 
send an e-mail to [email protected], and should include the following words 
in the body of the message, ``get form your e-mail address.'' A sample 
form and directions will be sent in reply. Parties who choose to file 
by paper must file an original and four copies of each filing. 
Commenters must submit two additional copies for each additional docket 
or rulemaking number. All filings must be sent to the Commission's 
Secretary, Magalie Roman Salas, Office of the Secretary, Federal 
Communications Commission, 445 12th Street, S.W., TW-A325, Washington, 
D.C. 20554.
    Parties also must send three paper copies of their filing to Wanda 
Harris, Competitive Pricing Division, 445 12th Street S.W., Fifth 
Floor, Washington, D.C. 20554. In addition, commenters must send 
diskette copies to the Commission's copy contractor, ITS, Inc., 1231 
20th Street, N.W., Washington, D.C. 20037.

List of Subjects

47 CFR Part 1

    Administrative practice and procedure, Communications common 
carriers, Telecommunications.

47 CFR Part 54

    Reporting and recordkeeping requirements, Telecommunications, 
Telephone.

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47 CFR Part 61

    Access charges, Communications common carriers, Telephone.

47 CFR Part 69

    Communications common carriers, Telephone.

Federal Communications Commission.
Carol Mattey,
Deputy Chief, Common Carrier Bureau.
[FR Doc. 00-6425 Filed 3-14-00; 8:45 am]
BILLING CODE 6712-01-P