[Federal Register Volume 65, Number 214 (Friday, November 3, 2000)]
[Proposed Rules]
[Pages 66215-66221]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-28060]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 20, 42, 61, 63, and 64

[IB Docket No. 00-202, FCC 00-367]


Policy and Rules Concerning the International Interexchange 
Marketplace and 2000 Biennial Regulatory Review

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rule making.

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SUMMARY: This document solicits comments on whether the Commission 
should continue to require U.S. non-dominant interexchange carriers to 
file tariffs for international services pursuant to the requirements of 
the Communications Act. The Commission initiated this proceeding to 
determine whether to extend the complete detariffing regime that it 
adopted for domestic, interexchange services to the international 
services of non-dominant interexchange carriers, including U.S. 
carriers classified as dominant due to foreign affiliations. The 
Commission believes that these proposals will foster competition in the 
U.S. international services market and bring lower rates to U.S. 
consumers.

DATES: Comments are due on or before November 17, 2000, and reply 
comments are due on or before December 4, 2000.

ADDRESSES: Federal Communications Commission, Secretary, 445 12th 
Street, SW., Room TW-B204F, Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: Lisa Choi, Policy and Facilities 
Branch, Telecommunications Division, International Bureau, (202) 418-
1460.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Proposed Rule Making, FCC 00-367, adopted on October 12, 2000, and 
released on October 18, 2000. The full text of this document is 
available for inspection and copying during normal business hours in 
the Office of Media Relations, Reference Operations Division, (Room CY-
A257) of the Federal Communications Commission, 445 12th Street, SW., 
Washington, DC 20554. The document is also available for download over 
the Internet at http://www.fcc.gov/Bureaus/International/Notices/2000//fcc00367.doc. The complete text of this document also may be purchased 
from the Commission's copy contractor, International Transcription 
Service, Inc., 1231 20th Street, NW., Washington, DC 20036, (202) 857-
3800.
    This NPRM contains proposed information collections subject to the 
Paperwork Reduction Act of 1995 (PRA). It will be submitted to the 
Office of Management and Budget (OMB) for review under the PRA. OMB, 
the general public, and other Federal agencies will be invited to 
comment on the proposed information collections contained in this 
proceeding.

Summary of Notice of Proposed Rulemaking

    1. In 1996, the Commission adopted policies and rules regarding the 
detariffing of domestic interexchange services (Domestic Detariffing 
Order) (61 FR 59340, November 22, 1996). In the Domestic Detariffing 
Order, the Commission concluded that complete detariffing with limited 
exceptions for permissive detariffing, satisfies the criteria set forth 
in section 10(a) of the Communications Act. The Commission made no 
determination as to whether detariffing international, interexchange 
services satisfied the requirements of section 10, as competitive 
conditions in the international marketplace may vary from those in the 
domestic interexchange marketplace.
    2. On October 12, 2000, the Commission adopted a Notice of Proposed 
Rulemaking (NPRM) to determine whether competitive conditions in the 
international interexchange marketplace support detariffing non-
dominant carriers' provision of international services in accordance 
with the criteria in section 10 of the Communications Act of 1996. The 
Commission initiated this proceeding in response to the Communications 
Act of 1996, which requires the Commission to review all 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. Since 
adopting the Domestic Detariffing Order, there have been dramatic 
changes in the market for international interexchange services 
resulting in increased competition. Thus, the Commission commenced this 
proceeding to examine whether to continue to require U.S. non-dominant 
interexchange carriers to file tariffs for international services 
pursuant to the requirements of section 203 of the Act. The Commission 
solicits comments on all of the proposals and tentative conclusions 
contained in the NPRM.
    3. The NPRM seeks comment on the Commission's tentative conclusion 
that the Communications Act requires it to forbear from applying 
section 203 of the Act and to adopt a policy of complete detariffing 
for international interexchange services with limited exceptions for 
permissive detariffing. The NPRM seeks comment on the Commission's 
determination that its proposals meet the statutory forbearance 
criteria of section 10 of the Communications Act.
    4. The NPRM solicits comment on the Commission's tentative 
conclusion that tariff filing requirements are not necessary to ensure 
that the charges, practices, classifications or regulations for the 
international interexchange services of non-dominant interexchange 
carriers are just and reasonable, and are not unjustly or unreasonably 
discriminatory. The NPRM also solicits comment on whether there remains 
a justification to retain tariffs on certain routes on which sufficient 
competition may not exist. The Commission tentatively concludes that 
its policies and enforcement authority, in conjunction with market 
forces will generally ensure that the rates, practices, and 
classifications of non-dominant interexchange carriers for 
international interexchange services will be just and reasonable and 
not unjustly or unreasonably discriminatory.
    5. Comments are requested on the Commission's tentative conclusion 
that tariffs are not necessary for the protection of consumers of 
interexchange services. The Commission tentatively concludes that 
tariffs are not necessary for the protection of consumers. Rather, the 
Commission believes that tariff filing requirements may harm consumers 
by undermining the development of competition and possibly leading to 
higher rates by stifling price reductions

[[Page 66216]]

and marketing innovations. The Commission tentatively concludes that 
detariffing will benefit consumers by permitting carriers to respond to 
price and service changes in an unregulated manner. The NPRM also 
discusses the ``filed-rate'' doctrine and seeks comment on the 
Commission's tentative conclusion that only with complete detariffing 
can the Commission be certain to avoid the uncertainty, confusion, and 
potential harm to consumers associated with the ``file-rate'' doctrine. 
The NPRM seeks comment on whether detariffing will protect consumer 
harm.
    6. The NPRM also seeks comment on the Commission's tentative 
conclusion that complete detariffing for international interexchange 
services will enhance competition among providers of such services, 
promote competitive market conditions, and achieve other objectives 
that are in the public interest. The NPRM sets forth the Commission's 
analysis on the benefits of complete detariffing and how it meets the 
statutory forbearance criteria, and comments are requested on these 
issues whether complete detariffing is in the public interest. In the 
Domestic Detariffing Order, the Commission found that permissive 
detariffing, as opposed to complete detariffing, satisfied the public 
interest and is warranted in two instances: (1) international 
interexchange direct-dial services to which end-users obtain access by 
dialing a carrier access code; and (2) international interexchange 
services provided during the initial forty-five days of service or 
until there is a written contract between the carrier and the customer. 
The NPRM addresses these exceptions, and comments are solicited on the 
Commission's conclusions and whether there are limited exceptions for 
permissive detariffing.
    7. The Commission believes that consumers must have adequate 
information concerning carriers' rates, terms and conditions to ensure 
carrier compliance with requirements and for consumers to determine the 
most appropriate rate plans available. The Commission proposes to 
require non-dominant interexchange providers of international services 
to disclose information about their rates, terms and conditions to the 
public, maintain price and service information regarding the 
international offerings that can be submitted to the agency upon 
request, and post information about their offerings on their Internet 
websites. The Commission proposes that carriers provide the same 
information that is currently provided in tariffs, and the information 
must be available to the public in at least one location during regular 
business hours. The Commission also proposes that carriers with 
Internet websites post this information on-line in a timely and easily 
accessible manner with regular updates. The NPRM solicits comments on 
the proposals regarding maintenance of price and service information 
and the public disclosure requirements.
    8. The NPRM also addresses the issue of price squeeze behavior, and 
it seeks comment on whether complete detariffing will affect the 
Commission's ability to monitor potential price squeeze behavior on 
international routes where U.S. carriers are affiliated with foreign 
carriers that possess market power.
    9. The NPRM also seeks comments on the proposal that the Commission 
revisit its previous conclusion that permissive detariffing of CMRS 
providers of international services on unaffiliated routes is in the 
public notice.
    10. The NPRM discusses the carrier-to-carrier contract filing 
requirement in Sec. 43.51 of the Commission's rules and solicits 
comments on the Commission's tentative conclusions and proposals to 
limit the requirement to contracts between an authorized carrier and: 
(1) An authorized carrier classified as dominant for reasons other than 
a foreign affiliation; and (2) a foreign carrier possessing market 
power.

Procedural Matters

    11. Ex Parte Presentations. This proceeding shall be treated as a 
``permit-but-disclose'' proceeding in accordance with the Commission's 
Ex Parte rules. Persons making oral ex parte presentations are reminded 
that memoranda summarizing the presentations must contain summaries of 
the substance of the presentations and not merely a listing of the 
subjects discussed. More than a one or two sentence description of the 
views and arguments presented is generally required. Other rules 
pertaining to oral and written presentations are set for section 
1.120(b) of the Commission's rules as well.
    12. Initial Regulatory Flexibility Analysis. As required by the 
Regulatory Flexibility Act, 5 U.S.C. 603, the Commission has prepared 
this present Initial Regulatory Flexibility Analysis (IRFA) of the 
possible significant economic impact on small entities by the policies 
and rules proposed in this NPRM. Written public comments are requested 
on this IRFA. Comments must be identified as responses to the IRFA and 
must be filed by the deadlines for comments on the NPRM provided 
herein, including this IRFA, to the Chief Counsel for the Advocacy of 
the Small Business Administration. In addition, the NPRM and IRFA 
comments will be published in the Federal Register.
    13. Need for, and Objectives, of, the Proposed Rules: The 
Commission is issuing this NPRM to review our regulatory regime for 
international interexchange telecommunications services, and to 
implement certain provisions of the 1996 Act. In light of the dramatic 
changes in the market for international interexchange services 
resulting from increased privatization and liberalization of foreign 
markets, the World Trade Organization (WTO) Basic Telecom Agreement, 
decreasing settlement rates and increased competition in the U.S. 
international services market, we believe it is timely for us to review 
our requirement that U.S. carriers file tariffs for international 
interexchange services under section 203 of the Act. Because tariffs 
can limit the flexibility necessary for all U.S. carriers, including 
smaller carriers, to offer new services in a competitive market and may 
harm consumers through the effect of the ``filed rate doctrine,'' we 
propose requiring complete or mandatory detariffing, with limited 
exceptions, in this NPRM for the international interexchange services 
provided by non-dominant carriers. Complete detariffing will reduce 
carriers' filing costs, and, on balance, the public disclosure and 
maintenance of information requirements proposed in this item are 
minimal and do not outweigh the benefits to all U.S. carriers and U.S. 
consumers to be gained from detariffing. The objective of the NPRM is 
to provide an opportunity for public comment and to provide a record 
for a Commission decision on the issues stated above.
    14. Legal Basis: We tentatively conclude that section 10 of the 
Communications Act requires the Commission to forbear completely from 
the tariff requirements contained in section 203 of the Communications 
Act. In addition, section 11 of the Communications Act directs the 
Commission to undertake a biennial review of its regulations concerning 
the operations or activities of any provider of telecommunications 
services. Thus, the NPRM is adopted pursuant to sections 1, 2, 4, 10, 
11, 201-205, 218, 220, 226, 303(g), 303(r) and 332 of the 
Communications Act of 1934, as amended. 47 U.S.C. 151, 152, 154, 160, 
161, 201-205, 215, 218, 220, 226, 303(g), 303(r) and 332.
    15. Description and Estimate of the Number of Small Entities To 
Which the Proposed Rules Will Apply: The RFA

[[Page 66217]]

directs agencies to provide a description of, and, where feasible, an 
estimate of the number of small entities that may be affected by the 
proposed rules, if adopted. The Regulatory Flexibility Act defines the 
term ``small entity'' as having the same meaning as the terms ``small 
business,'' ``small organization,'' and ``small business concern'' 
under section 3 of the Small Business Act. A small business concern is 
one which: (1) Is independently owned and operated; (2) is not dominant 
in its field of operation; and (3) satisfies any additional criteria 
established by the SBA. Any rule changes that might occur as a result 
of this proceeding could impact entities which are small business 
entities, as defined in section 601(3) of the Regulatory Flexibility 
Act. The proposed rules in this NPRM will reduce regulatory burdens on 
all non-dominant providers of international interexchange services, 
including small business entities.
    16. The SBA has developed a definition of small entities for 
telephone communications companies other than radiotelephone (wireless) 
companies. The Census Bureau reports that there were 2,321 such 
companies that had been operating for at least one year at the end of 
1992. According to the SBA's definition, a wireline telephone company 
is a small business if it employs no more than 1,500 persons. All but 
26 of the 2,321 wireline companies listed by the Census Bureau were 
reported to have fewer than 1,000 employees. Thus, even if all 26 of 
those companies had more than 1,500 employees, there would still be 
2,295 wireline companies that might qualify as small entities or small 
incumbent LECs. Although it seems certain that some of these carriers 
are not independently owned and operated, we are unable at this time to 
estimate with greater precision the number of wireline carriers and 
service providers that would qualify as small business concerns under 
the SBA's definition. Consequently, we estimate that fewer than 2,295 
of these wireline companies are small entities that might be affected 
by these proposals.
    17. Specifically, the proposals contained in the NPRM apply to 
entities seeking authorization to provide international service. The 
proposals, however, may affect other entities as well. The Commission, 
therefore, encourages interested parties to comment on the proposals in 
the NPRM. The proposals contained in the NPRM are intended to improve 
market efficiency by permitting carriers to respond to the dynamics of 
the marketplace and further the goals of the Communications Act. At 
this time, we are not certain as to the number of small entities that 
will be affected by the proposals. Agency data indicates there has been 
a steady increase in the number of section 214 applications filed with 
the Commission. The total number of licensees is difficult to 
determine, because many licenses are jointly held by several licensees. 
Based on agency data, we would estimate that there could be 800 
applicants that might be a small entity.
    18. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements: We believe that the proposed rules will reduce 
significantly the reporting burdens placed on small entities. The 
proposed rules would eliminate the requirement of filing tariffs for 
non-dominant interexchange carriers. These carriers would be required 
to retain business records containing price and service information 
regarding their international interexchange offerings. This 
information, however, is maintained by carriers in the normal course of 
business. The proposed rules only impose a requirement that providers 
of international interexchange services maintain this information for a 
period of at least two years and six months. It is likely that carriers 
maintain this information for this specific time period, as a normal 
business practice.
    19. We propose that carriers adopt a public disclosure requirement 
to make information available to the public concerning current rates, 
terms, and conditions for all of their international interexchange 
services, in at least one location during regular business hours. For 
those carriers with Internet websites, we propose that the carriers 
make the information available on their websites. In lieu of tariffs, 
the public disclosure requirement will ensure that the information is 
readily available to the public in an accessible format.
    20. The rules also propose to modify the requirement for filing 
carrier-to-carrier contracts, thereby reducing the filing burden on 
most carriers. We propose to simplify and modify our rules and set 
forth specific criteria that would trigger the carrier contract filing 
requirement.
    21. The proposals should enhance competition among providers of 
services, promote competitive market conditions and achieve benefits 
for the consumers while reducing the regulatory burdens on all non-
dominant providers of international interexchange services, including 
small business entities.
    22. Steps Taken to Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered: The RFA requires an 
agency to describe any significant alternatives that it has considered 
in reaching its proposed approach, which may include the following four 
alternatives: (1) The establishment of differing compliance or 
reporting requirements or timetables that take into account the 
resources available to small entities; (2) the clarification, 
consolidation, or simplification of compliance or reporting 
requirements under the rule for small entities; (3) the use of 
performance, rather than design standards; and (4) an exemption from 
coverage of the rule, or any part thereof, for small entities.
    23. We believe that the proposals will facilitate the development 
of increased competition in the international telecommunications 
marketplace and provide more flexibility for carriers to respond to the 
dynamics of the marketplace. Accounting rate reform policies, market 
forces, and increased competitive entry into the U.S. market have led 
to substantial reductions in consumer rates for international 
interexchange services. We believe that tariffs are no longer necessary 
to ensure that charges, practices, classification or regulations are 
just and reasonable and are not unjustly or unreasonably 
discriminatory. In addition, we believe that our proposals will 
contribute to market efficiency by permitting carriers to respond to 
the dynamics of the marketplace.
    24. In considering alternatives for small entities, we believe that 
the proposals contained in the NPRM are the least burdensome on small 
entities. We do not propose to standardize the requirements because the 
information is unique to the carrier and may be maintained in a manner 
that is consistent with the carrier's business practices. We propose to 
reduce the administrative costs to small entities by eliminating the 
tariff filing requirement. In addition, the public disclosure 
requirement should not impose burdens on small entities because the 
information is maintained in the normal course of business.
    25. In this NPRM, we are proposing to extend the policies and rules 
regarding the detariffing of domestic interexchange services to the 
international interexchange services of non-dominant carriers. We 
request comment on whether small entities would be adversely affected 
by the proposals herein and whether the proposals will enable small 
entities to respond to the demands of the market

[[Page 66218]]

with minimum regulatory oversight, delays, and expenses. We believe 
that our proposals would have either no impact, or would reduce, any 
economic burdens on small entities. After evaluating the comments in 
this proceeding, the Commission will further examine the impact of any 
rule changes on small entities and set forth findings in the Final 
Regulatory Flexibility Analysis.
    26. Federal Rules Which Overlap, Duplicate or Conflict with the 
Commission's Proposal: None.
    27. Paperwork Reduction Act. The NPRM contains either new or 
modified information collections subject to the Paperwork Reduction Act 
of 1995 (PRA). The Commission will submit the proposed information 
collections to the Office of Management and Budget (OMB) for review 
under the PRA. Upon submission to OMB, comments from OMB, the general 
public, and other federal agencies will be invited on the proposed 
information collections contained in the proceeding.

Ordering Clauses

    28. Pursuant to sections 1, 4, 10, 11, 201-205, 211, 218, 220, 226, 
303(g), 303(r) and 332 of the Communications Act of 1934, as amended, 
47 U.S.C. 151-154, 160, 161, 201-205, 211, 218, 220, 226, 303(g), 
303(r) and 332 the Notice of Proposed Rulemaking is hereby adopted.
    29. The Commission's Consumer Information Bureau, Reference 
Information Center, shall send a copy of this Notice of Proposed 
Rulemaking, including the regulatory flexibility certification, to the 
Chief Counsel for Advocacy of the Small Business Administration, in 
accordance with paragraph 603(a) of the Regulatory Flexibility Act, 
Public Law 96-354, 94 Stat. 1164, 5 U.S.C. 601, et seq. (1981).

List of Subjects

47 CFR Part 20

    Communications common carriers.

47 CFR Parts 42, 61, 63, and 64

    Communications common carriers, Reporting and recordkeeping 
requirements.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.

Proposed Rule Changes

    For the reasons discussed in the preamble, the Federal 
Communications Commission proposes to amend 47 CFR parts 20, 42, 61, 63 
and 64 as follows:

PART 20--COMMERCIAL MOBILE RADIO SERVICES

    1. The authority citation for part 20 continues to read as follows:

    Authority: 47 U.S.C. 154, 160, 251-254, 303, and 332 unless 
otherwise noted.

    2. Section 20.15 is amended by revising paragraphs (c) and (d) to 
read as follows:


Sec. 20.15  Requirements under Title II of the Communications Act.

* * * * *
    (c) Commercial mobile radio service providers shall not file 
tariffs for international and interstate service to their customers, 
international and interstate access service, or international and 
interstate operator service. Sections 1.771-1.773 and part 61 of this 
chapter are not applicable to international and interstate services 
provided by commercial mobile radio service providers. Commercial 
mobile radio service providers shall cancel tariffs for international 
and interstate service to their customers, international and interstate 
access service, and international and interstate operator service.
    (d) Nothing in this section shall be construed to modify the 
Commission's rules and policies on the provision of international 
service under Part 63 of this chapter. A commercial mobile radio 
service provider is required to comply with the requirement in 
Sec. 42.11 if it provides international service to markets where it has 
an affiliation with a foreign carrier that possesses market power and 
that collects settlement payments from U.S. carriers. For purposes of 
this paragraph, affiliation is defined in Sec. 63.18(h)(1)(i) of this 
chapter.
* * * * *

PART 42--PRESERVATION OF RECORDS OF COMMUNICATIONS COMMON CARRIERS

    3. The authority citation for part 42 continues to read as follows:

    Authority: Section 4(i), 48 Stat. 1066, as amended, 47 U.S.C. 
154(I). Interprets or applies sections 219 and 220, 48 Stat. 1077-
78, 47 U.S.C. 219, 220.

    4. Section 42.10 is amended by revising paragraph (a) to read as 
follows:


Sec. 42.10  Public availability of information concerning interexchange 
services.

    (a) A nondominant interexchange carrier (IXC) shall make available 
to any member of the public, in at least one location, during regular 
business hours, information concerning its current rates, terms and 
conditions for all of its international and interstate, domestic, 
interexchange services. Such information shall be made available in an 
easy to understand format and in a timely manner. Following an inquiry 
or complaint from the public concerning rates, terms and conditions for 
such services, a carrier shall specify that such information is 
available and the manner in which the public may obtain the 
information.
* * * * *
    5. Section 42.11 is amended by revising paragraph (a) to read as 
follows:


Sec. 42.11  Retention of information concerning detariffed 
interexchange services.

    (a) A nondominant IXC shall maintain, for submission to the 
Commission and to state regulatory commissions upon request, price and 
service information regarding all of the carrier's international and 
interstate, domestic, interexchange service offerings. A commercial 
mobile radio service provider of international service shall only 
maintain such price and service information about its international 
service offerings and only for those routes on which the commercial 
mobile radio service provider is affiliated with a foreign carrier that 
possesses market power. The price and service information maintained 
for purposes of this paragraph shall include documents supporting the 
rates, terms, and conditions of the carrier's international and 
interstate, domestic, interexchange offerings. The information 
maintained pursuant to this section shall be maintained in a manner 
that allows the carrier to produce such records within ten business 
days.
* * * * *

PART 43--REPORTS OF COMMUNICATION COMMON CARRIERS AND CERTAIN 
AFFILIATES

    6. The authority citation for part 43 continues to read as follows:

    Authority: 47 U.S.C. 154; Telecommunications Act of 1996, Public 
Law 104-104, sec. 402(b)(2)(B), (c), 110 Stat. 56 (1996) as amended 
unless otherwise noted. 47 U.S.C. 211, 219, 220 as amended.

    7. Section 43.51 is revised to read as follows:


Sec. 43.51  Contracts and concessions.

    (a) (1) Any carrier set forth in paragraph (b) of this section must 
file with the Commission within 30 days of execution a copy of each 
contract, agreement, concession, license, authorization, operating 
agreement or other arrangement to which it is a party

[[Page 66219]]

and amendments thereto with respect to the following:
    (i) The exchange of services; and,
    (ii) The interchange or routing of traffic and matters concerning 
rates, accounting rates, division of tolls, or the basis of settlement 
of traffic balances, except as provided in paragraph (c) of this 
section.
    (2) If the contract, agreement, concession, license, authorization, 
operating agreement or other arrangement and amendments thereto is made 
other than in writing, a certified statement covering all details 
thereof must be filed by at least one of the parties to the agreement. 
Each other party to the agreement which is also subject to these 
provisions may, in lieu of also filing a copy of the agreement, file a 
certified statement referencing the filed document. The Commission may, 
at any time and upon reasonable request, require any communication 
common carrier not subject to the provisions of this section to submit 
the documents referenced in this section.
    (b) The following carriers must comply with the requirements of 
paragraph (a) of this section:
    (1) A communications common carrier that is engaged in domestic 
communications and has not been classified as non-dominant pursuant to 
Sec. 61.3 of this chapter,
    (2) A U.S. common carrier, other than a provider of commercial 
mobile radio services, that enters into a contract, agreement, 
concession, license, authorization, operating agreement or other 
arrangement and amendments thereto with a foreign carrier that has 
market power in a foreign market, or
    (3) A U.S. carrier that has been classified as dominant on any of 
the international routes included in the contract, except for carriers 
classified as dominant on a particular route due only to a foreign 
carrier affiliation under Sec. 63.10 of this chapter.
    (c) With respect to contracts coming within the scope of paragraph 
(a)(1)(ii) of this section between subject telephone carriers and 
connecting carriers, except those contracts related to communications 
with foreign or overseas points, such documents shall not be filed with 
the Commission; but each subject telephone carrier shall maintain a 
copy of such contracts to which it is a party in appropriate files at a 
central location upon its premises, copies of which shall be readily 
accessible to Commission staff and members of the public upon 
reasonable request therefor; and upon request by the Commission, a 
subject telephone carrier shall promptly forward individual contracts 
to the Commission.
    (d) Any U.S. carrier that interconnects an international private 
line to the U.S. public switched network, at its switch, including any 
switch in which the carrier obtains capacity either through lease or 
otherwise, shall file annually with the Chief of the International 
Bureau a certified statement containing the number and type (e.g., a 
64-kbps circuit) of private lines interconnected in such a manner. The 
certified statement shall specify the number and type of interconnected 
private lines on a country specific basis. The identity of the customer 
need not be reported, and the Commission will treat the country of 
origin information as confidential. Carriers need not file their 
contracts for such interconnections, unless they are specifically 
requested to do so. These reports shall be filed on a consolidated 
basis on February 1 (covering international private lines 
interconnected during the preceding January 1 to December 31 period) of 
each year. International private lines to countries for which the 
Commission has authorized the provision of switched basic services over 
private lines at any time during a particular reporting period are 
exempt from this requirement.
    (e) International settlements policy. (1) If a U.S. carrier files 
an operating agreement (whether in the form of a contract, concession, 
license, etc.) with a foreign carrier with market power in that foreign 
market to begin providing switched voice, telex, telegraph, or packet-
switched service between the United States and a foreign point and the 
terms and conditions of such agreement relating to the exchange of 
services, interchange or routing of traffic and matters concerning 
rates, accounting rates, division of tolls, the allocation of return 
traffic, or the basis of settlement of traffic balances, are not 
identical to the equivalent terms and conditions in the operating 
agreement of another carrier providing the same or similar service 
between the United States and the same foreign point, the carrier must 
also file with the International Bureau a modification request 
Sec. 64.1001 of this chapter. Unless a carrier is providing switched 
voice, telex, telegraph, or packet-switched service between the United 
States and a foreign point pursuant to an operating agreement that is 
exempt from the international settlements policy, the carrier shall not 
bargain for or agree to accept more than its proportionate share of 
return traffic.
    (2) If a carrier files an amendment to an existing operating 
agreement with a foreign carrier with market power in that foreign 
market to provide switched voice, telex, telegraph, or packet-switched 
service between the United States and a foreign point, and other 
carriers provide the same or similar service to the same foreign point, 
and the amendment relates to the exchange of services, interchange or 
routing of traffic and matters concerning rates, accounting rates, 
division of tolls, the allocation of return traffic, or the basis of 
settlement of traffic balances, the carrier must also file with the 
International Bureau a modification request Sec. 64.1001 of this 
chapter.
    (3) A carrier that enters into a contract, including an operating 
agreement, with a carrier in a foreign point for the provision of a 
common carrier service between the United States and that point is not 
subject to the requirements of this subsection if the foreign point 
appears on the Commission's list of international routes that the 
Commission has exempted from the international settlements policy.

    Note to Sec. 43.51(e)(3): The Commission's list of international 
routes exempted from the international settlements policy is 
available from the International Bureau's World Wide Web site at 
http://www.fcc.gov/ib. A party that seeks to add a foreign market to 
the list of markets that are exempt from the international 
settlements policy must show that U.S. carriers are able to 
terminate at least 50 percent of U.S.-billed traffic in the foreign 
market at rates that are at least 25 percent below the benchmark 
settlement rate adopted for that country in IB Docket No. 96-261, 
Report and Order, 12 FCC Rcd 19,806, 62 FR 45758 (Aug. 29, 1997). A 
party that seeks to remove a foreign market from the list of markets 
that are exempt from the international settlements policy must show 
that U.S. carriers are unable to terminate at least 50 percent of 
U.S.-billed traffic in the foreign market at rates that are at least 
25 percent below the benchmark settlement rate adopted for that 
country in IB Docket No. 96-261.

    (f) Confidential treatment. (1) A carrier providing service on an 
international route that is exempt from the international settlements 
policy under paragraph (e)(3) of this section, but that is otherwise 
required by paragraphs (a) and (b) of this section to file a contract 
covering that route with the Commission, may request confidential 
treatment under Sec. 0.457 of this chapter for the rates, terms and 
conditions that govern the settlement of U.S. international traffic.
    (2) Carriers requesting confidential treatment under this paragraph 
must include the information specified in Sec. 64.1001(c) of this 
chapter. Such filings shall be made with the Commission, with a copy to 
the Chief, International Bureau. The transmittal letter accompanying 
the confidential filing

[[Page 66220]]

shall clearly identify the filing as responsive to Sec. 43.51(f).

    Note 1 to Sec. 43.51: To the extent that a foreign government 
provides telecommunications services directly through a governmental 
organization, body or agency, it shall be treated as a carrier for 
the purposes of this section.


    Note 2 to Sec. 43.51: Carriers may rely on the Commission's list 
of foreign carriers that do not qualify for the presumption that 
they lack market power in particular foreign points for purposes of 
determining which foreign carriers are subject to the contract 
filing requirements set forth in this section. The Commission's list 
of foreign carriers that do not qualify for the presumption that 
they lack market power in particular foreign points is available 
from the International Bureau's World Wide Web site at http://www.fcc.gov/ib. The Commission will include on the list of foreign 
carriers that do not qualify for the presumption that they lack 
market power in particular foreign points any foreign carrier that 
has 50 percent or more market share in the international transport 
or local access markets of a foreign point. A party that seeks to 
remove such a carrier from the Commission's list bears the burden of 
submitting information to the Commission sufficient to demonstrate 
that the foreign carrier lacks 50 percent market share in the 
international transport and local access markets on the foreign end 
of the route or that it nevertheless lacks sufficient market power 
on the foreign end of the route to affect competition adversely in 
the U.S. market. A party that seeks to add a carrier to the 
Commission's list bears the burden of submitting information to the 
Commission sufficient to demonstrate that the foreign carrier has 50 
percent or more market share in the international transport or local 
access markets on the foreign end of the route or that it 
nevertheless has sufficient market power to affect competition 
adversely in the U.S. market.

PART 61--TARIFFS

    8. The authority citation for part 61 continues to read as follows:

    Authority: sections 1, 4(I), 4(j), 201-205, and 403 of the 
Communications Act of 1934, as amended 47 U.S.C. 151, 154(I), 
154(j), 201-205, and 403 unless otherwise noted.

    9. Section 61.3 is amended by revising paragraph (u) to read as 
follows:


Sec. 61.3  Definitions.

* * * * *
    (u) Non-dominant carrier. A carrier not found to be dominant. The 
nondominant status of providers of international interexchange services 
for purposes of this subpart is not affected by a carrier's 
classification as dominant as defined in Sec. 63.10 of this chapter.
* * * * *
    10. Section 61.19 is revised to read as follows:


Sec. 61.19  Detariffing of international and interstate, domestic 
interexchange services.

    (a) Except as otherwise provided in paragraphs (b) and (c) of this 
section, or by Commission order, carriers that are nondominant in the 
provision of international and interstate, domestic interexchange 
services shall not file tariffs for such services.
    (b) Carriers that are nondominant in the provision of international 
and domestic, interstate, interexchange services are permitted to file 
tariffs for dial-around 1+ services. For the purposes of this 
paragraph, dial-around 1+ calls are those calls made by accessing the 
interexchange carrier through the use of that carrier's carrier access 
code.
    (c) Carriers that are nondominant in the provision of international 
and domestic, interstate, interexchange services are permitted to file 
a tariff for such services applicable to those customers who contact 
the local exchange carrier to designate an interexchange carrier or to 
initiate a change with respect to their primary interexchange carrier. 
Such tariff will enable the interexchange carrier to provide service to 
the customer until the interexchange carrier and the customer 
consummate a written agreement, but in no event shall the interexchange 
carrier provide service to its customer pursuant to such tariff for 
more than 45 days.
    11. Section 61.28 is revised to read as follows:


Sec. 61.28  International dominant carrier tariff filing requirements.

    (a) Any carrier classified as dominant for the provision of 
particular international communications services on a particular route 
for any reason other than a foreign carrier affiliation pursuant to 
Sec. 63.10 of this chapter shall file tariffs for those services 
pursuant to the notice and cost support requirements for tariff filings 
of dominant domestic carriers, as set forth in subpart E of this part.
    (b) Other than the notice and cost support requirements set forth 
in paragraphs (a) of this section, all tariff filing requirements 
applicable to all carriers classified as dominant for the provision of 
particular international communications services on a particular route 
for any reason other than a foreign carrier affiliation pursuant to 
Sec. 63.10 of this chapter are set forth in subpart C of this part.
    12. Section 61.74 is amended by removing paragraph (d) and 
redesignating paragraphs (e) and (f) as paragraphs (d) and (e).

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

    13. The authority citation for part 63 continues to read as 
follows:

    Authority: Section 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.

    14. Section 63.10 is amended by revising paragraph (c)(1) to read 
as follows:


Sec. 63.10  Regulatory classification of U.S. international carriers.

* * * * *
    (c) * * *
    (1) Authorized carriers regulated as dominant for the provision of 
international communications services on a particular route for any 
reason other than a foreign carrier affiliation pursuant to this 
section shall file tariffs for those services as set forth in 
Sec. 61.28 of this chapter.
* * * * *
    15. Section 63.17 is amended by revising paragraph (b)(3) to read 
as follows:


Sec. 63.17  Special provisions for U.S. international common carriers.

* * * * *
    (b) * * *
    (3) Authorized carriers filing tariffs pursuant to Secs. 61.19 or 
61.28 of this chapter that route U.S.-billed traffic via switched 
hubbing shall tariff their service on a ``through'' basis between the 
United States and the ultimate point of origination or termination;
* * * * *
    16. Section 63.21 is amended by revising paragraphs (b) and (c) to 
read as follows:


Sec. 63.21  Conditions applicable to all international Section 214 
authorizations.

* * * * *
    (b) Carriers must file copies of operating agreements entered into 
with their foreign correspondents that possess market power within 30 
days of their execution, and shall otherwise comply with the filing 
requirements contained in Sec. 43.51 of this chapter.
    (c) Carriers regulated as dominant for the provision of 
international communications services on a particular route for any 
reason other than a foreign carrier affiliation under Sec. 63.10 shall 
file tariffs pursuant to section 203 of the

[[Page 66221]]

Communications Act, 47 U.S.C. 203, and part 61 of this chapter. 
Carriers regulated as non-dominant, as defined in Sec. 61.3 of this 
chapter, and providing detariffed interexchange services pursuant to 
Sec. 61.19 of this chapter must comply with all applicable public 
disclosure, and maintenance of information requirements in Secs. 42.10, 
and 42.11 of this chapter.
* * * * *
[FR Doc. 00-28060 Filed 11-2-00; 8:45 am]
BILLING CODE 6712-10-P