[Federal Register Volume 65, Number 243 (Monday, December 18, 2000)]
[Proposed Rules]
[Pages 79047-79048]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-32072]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 54
[CC Docket No. 96-45; FCC 00-428]
Federal-State Joint Board on Universal Service
AGENCY: Federal Communications Commission.
ACTION: Notice of proposed rule.
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SUMMARY: In this document, the Commission seeks comment on the narrow
issue of whether to continue to apply certain sections of the
Commission's rules to transfers of telephone exchanges between non-
rural carriers following the phase-down of the interim hold-harmless
support.
DATES: Comments are due on or before January 17, 2001, and reply
comments are due on or before February 1, 2001.
ADDRESSES: All filings must be sent to the Commission's Secretary,
Magalie Roman Salas, Office of the Secretary, Federal Communications
Commission, 445 12th Street, SW., Washington, DC 20554. Parties also
should send three paper copies of their filing to Sheryl Todd,
Accounting Policy Division, Common Carrier Bureau, Federal
Communications Commission, 445 Twelfth Street, SW., Room 5-B540,
Washington, DC 20554.
FOR FURTHER INFORMATION CONTACT: William Scher, Attorney, Common
Carrier Bureau, Accounting Policy Division, (202) 418-7400.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's
Further Notice of Proposed Rulemaking in CC Docket No. 96-45 released
on December 8, 2000. This is a companion to the Commission's Thirteenth
Report and Order in CC Docket No. 96-45 also released December 8, 2000.
The full text of this document is available for public inspection
during regular business hours in the FCC Reference Center, Room CY-
A257, 445 Twelfth Street, SW., Washington, DC 20554.
I. Introduction
1. In this Further Notice of Proposed Rulemaking (FNPRM), we seek
comment on the narrow issue of whether to continue to apply Sec. 54.305
of the Commission's rules to transfers of telephone exchanges between
non-rural carriers following the phase-down of interim hold-harmless
support for non-rural carriers, as provided for in the Commission's
companion Thirteenth Report and Order in CC Docket No. 96-45 released
on December 8, 2000. Section 54.305 requires a carrier that acquires an
exchange to step into the seller's shoes for universal service support
purposes. The Commission adopted the rule in 1997 as a stopgap measure
to prevent carriers receiving support based on the size of their study
areas and embedded costs from ``placing unreasonable reliance upon
potential universal service support in deciding whether to purchase
exchanges[.]'' Because all non-rural carriers will receive support
based on forward-looking economic costs following the phase-down of
interim hold-harmless support, we believe that the need for Sec. 54.305
would no longer exist with regard to transfers between non-rural
carriers once the phase-down is complete.
II. Further Notice of Proposed Rulemaking
2. Following the phase-down of interim hold-harmless support, all
non-rural carriers will receive high-cost support based on the forward-
looking economic costs of operating a given exchange. As a result,
``the level of support will not be a primary factor in a [non-rural]
carrier's decision to purchase exchanges because the carrier's support
will not be based on the size of the study area nor embedded costs.''
We believe this rule change is necessary regardless of the outcome of
the current Federal-State Joint Board on Universal Service examination
of the
[[Page 79048]]
Rural Task Force Recommendation on Sec. 54.305, because application of
Sec. 54.305 to transfers between non-rural carriers may impede
operation of the forward-looking mechanism by preventing calculation of
the forward-looking economic costs of operating a transferred exchange
on an ongoing, quarterly basis. We, therefore, seek comment on whether
to amend Sec. 54.305 of our rules so that it does not apply to
transfers of exchanges between non-rural carriers following the phase-
down of interim hold-harmless support.
III. Procedural Matters
a. Regulatory Flexibility Act Certifications--Final and Initial
3. The Regulatory Flexibility Act (RFA) requires an Initial
Regulatory Flexibility Analysis (IRFA) of the possible significant
economic impact on small entities of proposed policies and rules, and a
Final Regulatory Flexibility Analysis (FRFA) whenever an agency
subsequently promulgates a final rule, unless the agency certifies that
the proposed or final rule will not have ``a significant economic
impact on a substantial number of small entities,'' and includes the
factual basis for such certification. The RFA generally defines ``small
entity'' as having the same meaning as the terms ``small business,''
``small organization,'' and ``small governmental jurisdiction.'' In
addition, the term ``small business'' has the same meaning as the term
``small business concern'' under 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 Small Business Administration
(SBA). The SBA defines a small telecommunications entity in Standard
Industrial Classification Code 4813 (Telephone Communications, Except
Radiotelephone) as an entity with 1,500 or fewer employees.
4. We conclude that an IRFA is not required here. The foregoing
Further Notice of Proposed Rulemaking proposes a rule change. The
proposed rules affect the amount of high-cost support provided to non-
rural carriers. Non-rural carriers generally do not fall within the
SBA's definition of a small business concern because they are usually
large corporations or affiliates of such corporations. Thus, the rules
proposed here do not affect a substantial number of small entities.
Therefore, we certify, pursuant to section 605(b) of the RFA, that the
rule change proposed in the Further Notice of Proposed Rulemaking will
not have a significant economic impact on a substantial number of small
entities. The Commission will send a copy of the Further Notice of
Proposed Rulemaking and of this certification to the Chief Counsel for
Advocacy of the SBA. In addition, this certification will be published
in the Federal Register. The Commission will send a copy of this
Further Notice of Proposed Rulemaking, including a copy of this
certification, in a report to Congress pursuant to the SBREFA.
b. Paperwork Reduction Act
5. The instant Further Notice of Proposed Rulemaking proposes no
information collections.
c. Comment Filing Procedure
6. Pursuant to Secs. 1.415 and 1.419 of the Commission's rules,
interested parties may file comments on or before January 17, 2001, and
reply comments on or before February 1, 2001. Comments may be filed
using the Commission's Electronic Comment Filing System (ECFS) or by
filing paper copies. See Electronic Filing of Documents in Rulemaking
Proceedings, 63 FR 24121, May 1, 1998.
7. Comments filed through the ECFS can be sent as an electronic
file via the Internet to http://www.fcc.gov/e-file/ecfs.html. Only one
copy of an electronic submission must be filed. 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 electronic comments by Internet e-mail.
To receive 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. In addition, parties who
choose to file by paper must send diskette copies to the Commission's
copy contractor, International Transcription Service, Inc., 1231 20th
Street, NW., Washington, DC 20037.
IV. Ordering Clauses
21. Pursuant to the authority contained in sections 1-4, 201-205,
214, 218-220, 254, 303(r), 403, and 410 of the Communications Act of
1934, as amended, this Further Notice of Proposed Rulemaking is adopted
and comments are requested as described.
22. The Commission's Consumer Information Bureau, Reference
Information Center, shall send a copy of the Further Notice of Proposed
Rulemaking, including the Regulatory Flexibility Act Certifications, to
the Chief Counsel for Advocacy of the Small Business Administration.
List of Subjects in 47 CFR Part 54
Reporting and recordkeeping requirements, Telecommunications,
Telephone.
Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 00-32072 Filed 12-15-00; 8:45 am]
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