[Federal Register Volume 66, Number 19 (Monday, January 29, 2001)]
[Proposed Rules]
[Pages 8093-8098]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-2378]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
 ========================================================================
 

  Federal Register / Vol. 66, No. 19 / Monday, January 29, 2001 / 
Proposed Rules  

[[Page 8093]]



FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 64

[CC Docket Nos. 00-257 and 94-129; FCC 00-451]


2000 Biennial Regulatory Review--Review of Policies and Rules 
Concerning Unauthorized Changes of Consumers Long Distance Carriers

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rule.

-----------------------------------------------------------------------

SUMMARY: In this document, the Commission proposes modifications to its 
carrier change authorization and verification rules in situations when 
a telecommunications carrier sells or transfers its subscriber base to 
another carrier. The Commission proposes and seeks comment on expedited 
procedures for handling the sale or transfer of subscribers that will 
adequately protect consumers as a part of its biennial regulatory 
review.

DATES: Comments are due on or before February 20, 2001 and reply 
comments are due on or before March 1, 2001. Written comments by the 
public on the proposed and/or modified information collections 
discussed in this Third Further Notice of Proposed Rulemaking (FNPRM) 
are due on or before February 20, 2001. Written comments by the Office 
of Management and Budget (OMB) on the proposed and/or modified 
information collections are due on or before March 30, 2001.

ADDRESSES: Parties who choose to file by paper must file an original 
and four copies of each filing. If more than one docket or rulemaking 
number appears in the caption of this proceeding, 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, SW., Washington, DC 20554. In addition to 
filing comments with the Secretary, a copy of any comments on the 
information collection(s) contained herein should be submitted to Judy 
Boley, Federal Communications Commission, Room 1-C804, 445 12th Street, 
SW., Washington, DC 20554, or via the Internet to [email protected] and to 
Edward C. Springer, OMB Desk Officer, 10236 NEOB, 725 17th Street, NW., 
Washington, DC 20503, or via the Internet to [email protected]. Parties 
should also send three paper copies of their filings to Sheryl Todd, 
Accounting Policy Division, Common Carrier Bureau, Federal 
Communications Commission, 445 12th Street, SW., Room 5-B540, 
Washington, DC 20554. Parties who choose to file by paper should also 
submit their comments on diskette. These diskettes should be submitted 
to Sheryl Todd, Accounting Policy Division, Common Carrier Bureau, 
Federal Communications Commission, 445 12th Street, SW., Room 5-B540, 
Washington, DC 20554. In addition, commenters must send diskette copies 
to the Commission's copy contractor, International Transcription 
Services, Inc., 1231 20th Street, NW., Washington, DC 20037.

FOR FURTHER INFORMATION CONTACT: William Cox, Attorney, Common Carrier 
Bureau, Accounting Policy Division, (202) 418-7400.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Third 
Further Notice of Proposed Rulemaking in CC Docket Nos. 00-257 and 94-
129 released on January 18, 2001. The full text of this document is 
available for public inspection during regular business hours in the 
FCC Reference Center, Room CY-A257, 445 12th Street, SW., Washington, 
DC 20554.
    This FNPRM contains proposed information collection(s) subject to 
the Paperwork Reduction Act of 1995 (PRA). It has been submitted to the 
Office of Management and Budget (OMB) for review under the PRA. OMB, 
the general public, and other Federal agencies are invited to comment 
on the proposed information collections contained in this proceeding.

Paperwork Reduction Act

    The FNPRM contains a proposed information collection. The 
Commission, as part of its continuing effort to reduce paperwork 
burdens, invites the general public and OMB to comment on the 
information collection(s) contained in this FNPRM, as required by the 
PRA, Public Law 104-13. Public and agency comments on the proposed and/
or modified information collections discussed in this FNPRM are due on 
or before February 20, 2001. Written comments by the Office of 
Management and Budget (OMB) on the proposed and/or modified information 
collections are due on or before March 30, 2001.
    Comments should address: (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) the accuracy of the Commission's burden estimates; (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.
    OMB Control Number: None.
    Title: Proposed Rules Governing the Sale or Transfer of Subscriber 
Base to Another Carrier.
    Form No.: N/A
    Type of Review: Proposed new collections.
    Respondents: Business or other for-profit.

----------------------------------------------------------------------------------------------------------------
                                                                     Number of     Est. time per   Total annual
                              Title                                 respondents      response         burden
----------------------------------------------------------------------------------------------------------------
1. Proposed Pre-Transfer Subscriber Notification................              75               6             450
2. Proposed Post-Transfer Subscriber Notification...............              75               3             225
3. Proposed Pre-Transfer Notification and Certification To                    75               1              75
 Commission.....................................................
----------------------------------------------------------------------------------------------------------------


[[Page 8094]]

    Total Annual Burden: 750.
    Cost to Respondents: $0.
    Needs and Uses: The Commission proposes modifications to its 
carrier change authorization and verification rules in situations when 
a telecommunications carrier sells or transfers its subscriber base to 
another carrier. The Commission proposes and seeks comment on expedited 
procedures for handling the sale or transfer of subscribers that will 
adequately protect consumers as a part of its biennial regulatory 
review. The information will be used to implement Section 258 of the 
Act. This information will expedite procedures for handling the sale or 
transfer of subscribers, while adequately protecting consumers.

Synopsis of FNPRM

I. Introduction

    1. In this Third Further Notice of Proposed Rulemaking, we propose 
modifications to our carrier change authorization and verification 
rules in situations when a telecommunications carrier sells or 
transfers its subscriber base to another carrier. We propose and seek 
comment on expedited procedures for handling the sale or transfer of 
subscribers that will adequately protect consumers as a part of our 
biennial regulatory review.

II. Discussion

    2. Our carrier change authorization and verification requirements 
were adopted to protect consumers from fraudulent activities. We 
believe that the process of seeking a waiver of the authorization and 
verification requirements potentially is burdensome to carriers seeking 
to sell or acquire customer accounts. Given the dynamic marketplace, 
and the likelihood that carriers will continue to buy, sell, and 
transfer customer lines in the future, we think it is time to reexamine 
our rules in this limited situation to ensure that we do not 
inadvertently inhibit routine business transactions. In conjunction 
with our biennial regulatory review effort, we propose to modify the 
authorization and verification requirements of the Commission's carrier 
change rules to reduce regulatory burdens in situations involving the 
purchase or transfer of customer lines, while adequately protecting 
consumers. We invite comment on whether the Commission's carrier change 
authorization and verification rules should be amended to provide a 
streamlined procedure for carriers desiring to transfer the 
presubscribed customers of another carrier to their own customer bases.
    3. We tentatively conclude that the following principles should 
underlie any expedited procedures for handling the sale or transfer of 
a subscriber base. First, the affected subscribers should receive 
reasonable advance notice of the carrier change associated with the 
sale or transfer. Second, we believe that subscribers should be told 
that they have the right to make another preferred carrier selection, 
if alternative carriers are available, and of the charges, rates, 
terms, and conditions they may expect when they are moved from one 
carrier to another as a result of the sale or transfer of a subscriber 
base. Finally, we believe that it is in the public interest for the 
Commission to receive notice prior to the sale or transfer of a 
subscriber base. The Commission will be better able to ensure that 
consumer interests will be protected if it has advance knowledge of 
such transactions. We seek comment on these tentative conclusions.
    4. We propose the following expedited process for the sale or 
transfer of subscriber bases. We seek comment on whether to amend 
Sec. 64.1120 of our rules to eliminate the need for authorization and 
verification of a carrier change to effect any sale or transfer of a 
subscriber base, provided that, not later than 30 days before the 
closing of the transaction, the acquiring carrier gives each affected 
subscriber written notice of the following information: (1) The 
acquiring carrier will be the new provider of telecommunications 
service for the subscriber; (2) the rates, terms, and conditions of the 
services offered by the purchasing carrier; (3) no carrier change 
charges will be imposed as a result of the transaction; and (4) the 
subscriber has the right to select a different preferred carrier. We 
also seek comment on whether to require the acquiring carrier to 
provide each subscriber with another written notice reiterating this 
information after the transfer has occurred. Insofar as these notices 
directly affect the provision of a subscriber's telephone service, we 
seek comment on the need for acquiring carriers to provide these 
notices in accessible formats to people who are blind or visually 
impaired. In addition, we seek comment on whether to require the 
acquiring carrier to notify the Commission of a sale or transfer not 
later than 30 days before the closing of the transaction and to certify 
its compliance with the Commission's rules and any outstanding 
Commission order, including the provision of reasonable notice to the 
affected customers regarding the transaction and the customers' 
subsequent rights. We seek comment on whether 30 days is the 
appropriate length of time for notifying subscribers and/or certifying 
compliance with Commission requirements. We also invite comment on 
whether such certification should include copies of sample notification 
letters. We seek comment on these proposals and any other alternative 
proposals that would minimize regulatory burdens, while adequately 
protecting consumers.
    5. We ask commenters to address whether this proposed expedited 
process properly balances our obligation under section 258 to protect 
subscribers from the unauthorized change of their preferred carrier 
with the goal of ensuring that our rules do not unnecessarily impede 
marketplace transactions involving the sale or transfer of customer 
lines or accounts from one carrier to another. We also invite parties 
to comment on whether notice requirements should differ depending upon 
the type of telecommunications service being provided, such as local, 
intraLATA toll, or interLATA toll service, or upon the size of the 
carriers involved. We also seek comment on whether any additional 
obligations should be imposed on the carriers. For example, should the 
acquiring carrier be required to provide a toll-free customer service 
number to the affected subscriber in order to address any questions or 
problems that the subscriber may have concerning the change in service 
providers? Should the acquiring carrier be required to continue to 
charge affected subscribers the same rates as those charged by the 
original carrier for a specified period after the transfer? Should the 
carriers commit to handling customer complaints regarding the service 
of the original carrier to ensure that transferred subscribers are not 
deprived of recourse after the transfer? We also seek comment on 
whether we should adopt specific measures to protect consumers from 
unscrupulous carriers that may attempt to sell their customer bases to 
evade the repercussions of Commission enforcement actions.

III. Procedural Matters

A. Initial Regulatory Flexibility Analysis

    6. As required by the Regulatory Flexibility Act (RFA), the 
Commission has prepared the present Initial Regulatory Flexibility 
Analysis (IRFA) of the possible significant impact on small entities by 
the policies and rules proposed in this FNPRM. Written public comments 
are requested on this IRFA.

[[Page 8095]]

Comments must be identified as responses to the IRFA and must be filed 
by the deadline for comments on the FNPRM provided in the Comment 
Filing Procedures section. The Commission will send a copy of the 
FNPRM, including this IRFA, to the Chief Counsel for Advocacy of the 
Small Business Administration. In addition, the FNPRM and IRFA (or 
summaries thereof) will be published in the Federal Register.
1. Need for and Objectives of This Order and the Rules Proposed Herein
    7. The goal of section 258 of the Act is to eliminate the illegal 
practice of slamming--the unauthorized change of a subscriber's 
preferred carrier. The Commission, in its efforts to protect consumers 
from the unauthorized selection of preferred carriers, is issuing this 
FNPRM. The Commission seeks comment on the proposed amendments to the 
authorization and verification of subscriber preferred carrier changes 
associated with the sale or transfer of a subscriber base from one 
carrier to another.
    8. Under the Act and the proposed rules, a small entity that 
violates the Commission's preferred carrier change authorization and 
verification rules may be liable for damages. Small entities may be 
affected by the proposals for modifying the Commission's rules with 
regard to the sale or transfer of customer base from one carrier to 
another.
2. Legal Basis
    9. This FNPRM is adopted pursuant to sections 1, 4(i), 4(j), 201-
205, 258, and 303(r) of the Communications Act of 1934, as amended, 47 
U.S.C. 151, 154(i), 154(j), 201-205, 258, 303(r).
3. Description and Estimates of the Number of Small Entities to Which 
Rules Will Apply
    10. The RFA 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 RFA generally defines 
the term ``small entity'' as having the same meaning as the terms 
``small business,'' ``small organization,'' ``small governmental 
jurisdiction,'' 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 
Small Business Administration (SBA). A small organization is generally 
``any not-for-profit enterprise which is independently owned and 
operated and is not dominant in its field.'' Nationwide, as of 1992, 
there were approximately 275,801 small organizations. ``Small 
governmental jurisdiction'' generally means ``governments of cities, 
counties, towns, townships, villages, school districts, or special 
districts, with a population of less than 50,000.'' As of 1992, there 
were approximately 85,006 such jurisdictions in the United States. This 
number includes 38,978 counties, cities, and towns; of these, 37,566, 
or 96 percent, have populations of fewer than 50,000. The Census Bureau 
estimates that this ratio is approximately accurate for all 
governmental entities. Thus, of the 85,006 governmental entities, we 
estimate that 81,600 (96 percent) are small entities. According to SBA 
reporting data, there were 4.44 million small business firms nationwide 
in 1992. We further describe and estimate the number of small entity 
licensees and regulatees that may be affected by the proposed rules, if 
adopted.
    11. The most reliable source of information regarding the total 
numbers of certain common carrier and related providers nationwide, as 
well as the number of commercial wireless entities, appears to be data 
the Commission publishes in its Trends in Telephone Service report. In 
a recent news release, the Commission indicated that there are 4,144 
interstate carriers. These carriers include, inter alia, local exchange 
carriers, wireline carriers and service providers, interexchange 
carriers, competitive access providers, operator service providers, pay 
telephone operators, providers of telephone service, providers of 
telephone exchange service, and resellers.
    12. The SBA has defined establishments engaged in providing 
``Radiotelephone Communications'' and ``Telephone Communications, 
Except Radiotelephone'' to be small businesses when they have no more 
than 1,500 employees. We discuss the total estimated number of 
telephone companies falling within the two categories and the number of 
small businesses in each, and we then attempt to refine further those 
estimates to correspond with the categories of telephone companies that 
are commonly used under our rules.
    13. We have included small incumbent LECs in this present RFA 
analysis. As noted, a ``small business'' under the RFA is one that, 
inter alia, meets the pertinent small business size standard (e.g., a 
telephone communications business having 1,500 or fewer employees), and 
``is not dominant in its field of operation.'' The SBA's Office of 
Advocacy contends that, for RFA purposes, small incumbent LECs are not 
dominant in their field of operation because any such dominance is not 
``national'' in scope. We have therefore included small incumbent LECs 
in this RFA analysis, although we emphasize that this RFA action has no 
effect on FCC analyses and determinations in other, non-RFA contexts.
    14. Total number of telephone companies affected. The U.S. Bureau 
of the Census (``Census Bureau'') reports that, at the end of 1992, 
there were 3,497 firms engaged in providing telephone services, as 
defined therein, for at least one year. This number contains a variety 
of different categories of carriers, including local exchange carriers, 
interexchange carriers, competitive access providers, cellular 
carriers, mobile service carriers, operator service providers, pay 
telephone operators, covered specialized mobile radio providers, and 
resellers. It seems certain that some of these 3,497 telephone service 
firms may not qualify as small entities because they are not 
``independently owned and operated.'' For example, a PCS provider that 
is affiliated with an interexchange carrier having more than 1,500 
employees would not meet the definition of a small business. It is 
reasonable to conclude that 3,497 or fewer telephone service firms are 
small entity telephone service firms that may be affected by the new 
rules.
    15. Wireline carriers and service providers. The SBA has developed 
a definition of small entities for telephone communications companies 
except radiotelephone (wireless) companies. The Census Bureau reports 
that there were 2,321 such telephone companies in operation for at 
least one year at the end of 1992. According to the SBA's definition, a 
small business telephone company other than a radiotelephone company is 
one employing no more than 1,500 persons. All but 26 of the 2,321 non-
radiotelephone 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 
non-radiotelephone companies that might qualify as small entities. We 
do not have data specifying the number of these carriers that are not 
independently owned and operated, and thus 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 2,295 or fewer 
small telephone communications

[[Page 8096]]

companies other than radiotelephone companies are small entities that 
may be affected by the new rules.
    16. Local exchange carriers. Neither the Commission nor the SBA has 
developed a definition for small providers of local exchange services 
(LECs). The closest applicable definition under the SBA rules is for 
telephone communications companies other than radiotelephone (wireless) 
companies. According to the most recent Telecommunications Industry 
Revenue data, 1,348 incumbent carriers reported that they were engaged 
in the provision of local exchange services. We do 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 are unable at this time to 
estimate with greater precision the number of LECs that would qualify 
as small business concerns under the SBA's definition. Consequently, we 
estimate that 1,348 or fewer providers of local exchange service are 
small entities that may be affected by the new rules.
    17. Interexchange carriers. Neither the Commission nor the SBA has 
developed a definition of small entities specifically applicable to 
providers of interexchange services (IXCs). The closest applicable 
definition under the SBA rules is for telephone communications 
companies other than radiotelephone (wireless) companies. According to 
the most recent Trends in Telephone Service data, 171 carriers reported 
that they were engaged in the provision of interexchange services. We 
do not have data specifying the number of these carriers that are not 
independently owned and operated or have more than 1,500 employees, and 
thus are unable at this time to estimate with greater precision the 
number of IXCs that would qualify as small business concerns under the 
SBA's definition. Consequently, we estimate that there are 171 or fewer 
small entity IXCs that may be affected by the new rules.
    18. Competitive access providers. Neither the Commission nor the 
SBA has developed a definition of small entities specifically 
applicable to competitive access services providers (CAPs). The closest 
applicable definition under the SBA rules is for telephone 
communications companies other than radiotelephone (wireless) 
companies. According to the most recent Trends in Telephone Service 
data, 212 CAP/CLECs carriers and 10 other LECs reported that they were 
engaged in the provision of competitive local exchange services. We do 
not have data specifying the number of these carriers that are not 
independently owned and operated, or have more than 1,500 employees, 
and thus are unable at this time to estimate with greater precision the 
number of CAPs that would qualify as small business concerns under the 
SBA's definition. Consequently, we estimate that there are 212 or fewer 
small entity CAPs and 10 other LECs that may be affected by the new 
rules.
    19. Operator service providers. Neither the Commission nor the SBA 
has developed a definition of small entities specifically applicable to 
providers of operator services. The closest applicable definition under 
the SBA rules is for telephone communications companies other than 
radiotelephone (wireless) companies. According to the most recent 
Trends in Telephone Service data, 24 carriers reported that they were 
engaged in the provision of operator services. We do not have data 
specifying the number of these carriers that are not independently 
owned and operated or have more than 1,500 employees, and thus are 
unable at this time to estimate with greater precision the number of 
operator service providers that would qualify as small business 
concerns under the SBA's definition. Consequently, we estimate that 
there are 24 or fewer small entity operator service providers that may 
be affected by the new rules.
    20. Pay telephone operators. Neither the Commission nor the SBA has 
developed a definition of small entities specifically applicable to pay 
telephone operators. The closest applicable definition under SBA rules 
is for telephone communications companies other than radiotelephone 
(wireless) companies. According to the most recent Trends in Telephone 
Service data, 615 carriers reported that they were engaged in the 
provision of pay telephone services. We do not have data specifying the 
number of these carriers that are not independently owned and operated 
or have more than 1,500 employees, and thus are unable at this time to 
estimate with greater precision the number of pay telephone operators 
that would qualify as small business concerns under the SBA's 
definition. Consequently, we estimate that there are 615 or fewer small 
entity pay telephone operators that may be affected by the new rules.
    21. Resellers (including debit card providers). Neither the 
Commission nor the SBA has developed a definition of small entities 
specifically applicable to resellers. The closest applicable SBA 
definition for a reseller is a telephone communications company other 
than radiotelephone (wireless) companies. According to the most recent 
Trends in Telephone Service data, 388 toll and 54 local entities 
reported that they were engaged in the resale of telephone service. We 
do not have data specifying the number of these carriers that are not 
independently owned and operated or have more than 1,500 employees, and 
thus are unable at this time to estimate with greater precision the 
number of resellers that would qualify as small business concerns under 
the SBA's definition. Consequently, we estimate that there are 388 or 
fewer small toll entity resellers and 54 small local entity resellers 
that may be affected by the new rules.
    22. Toll-free 800 and 800-like service subscribers. Neither the 
Commission nor the SBA has developed a definition of small entities 
specifically applicable to 800 and 800-like service (``toll-free'') 
subscribers. The most reliable source of information regarding the 
number of these service subscribers appears to be data the Commission 
collects on the 800, 888, and 877 numbers in use. According to our most 
recent data, at the end of January 1999, the number of 800 numbers 
assigned was 7,692,955; the number of 888 numbers that had been 
assigned was 7,706,393; and the number of 877 numbers assigned was 
1,946,538. We do not have data specifying the number of these 
subscribers that are not independently owned and operated or have more 
than 1,500 employees, and thus are unable at this time to estimate with 
greater precision the number of toll free subscribers that would 
qualify as small business concerns under the SBA's definition. 
Consequently, we estimate that there are 7,692,955 or fewer small 
entity 800 subscribers, 7,706,393 or fewer small entity 888 
subscribers, and 1,946,538 or fewer small entity 877 subscribers that 
may be affected by the new rules.
    23. Cellular licensees. Neither the Commission nor the SBA has 
developed a definition of small entities applicable to cellular 
licensees. Therefore, the applicable definition of small entity is the 
definition under the SBA rules applicable to radiotelephone (wireless) 
companies. This provides that a small entity is a radiotelephone 
company employing no more than 1,500 persons. According to the Census 
Bureau, only twelve radiotelephone firms from a total of 1,178 such 
firms, which operated during 1992, had 1,000 or more employees. 
Therefore, even if all twelve of these firms were cellular telephone 
companies, nearly all cellular carriers were small businesses under the 
SBA's definition. In addition, we note that there are 1,758 cellular 
licenses;

[[Page 8097]]

however, a cellular licensee may own several licenses. In addition, 
according to the most recent Telecommunications Industry Revenue data, 
808 carriers reported that they were engaged in the provision of either 
cellular service or Personal Communications Service (PCS) services, 
which are placed together in the data. We do not have data specifying 
the number of these carriers that are not independently owned and 
operated or have more than 1,500 employees, and thus are unable at this 
time to estimate with greater precision the number of cellular service 
carriers that would qualify as small business concerns under the SBA's 
definition. Consequently, we estimate that there are 808 or fewer small 
cellular service carriers that may be affected by the new rules.
4. Summary of Projected Reporting, Recordkeeping, and Other Compliance 
Requirements
    24. There are no certain projected reporting, recordkeeping, or 
other compliance requirements at this time. In the event the Commission 
amends its rules to address situations involving the transfer of a 
customer base from one carrier to another, acquiring carriers may be 
required to provide written notice to the affected subscribers of the 
transaction both before and after its completion and provide some form 
of certification to the Commission regarding the transaction.
5. Steps Taken To Minimize Significant Economic Impact on Small 
Entities and Significant Alternatives Considered
    25. 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 (among others): (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. 5 U.S.C. 603(c).
    26. If this FNPRM results in the promulgation of new rules to 
address the sale or transfer of subscriber bases, the Commission will 
actively consider the economic impact on small entities and significant 
alternatives that would be less burdensome for small entities. The 
intent of this FNPRM is to propose rule changes that would reduce 
regulatory burdens associated with the sale or transfer of subscriber 
bases for all telecommunications carriers, including small entities. 
Specifically, the Commission is considering amending Sec. 64.1120 of 
our rules to eliminate the requirement that carriers obtain each 
affected subscriber's authorization and verification of a carrier 
change in order to effect the sale or transfer of a subscriber base, 
provided that, within a specified time period, the purchasing carrier 
gives each affected subscriber written notice of certain information. 
This proposed amendment would also eliminate the need to obtain a 
waiver of our carrier change authorization and verification rules, 
which can be particularly burdensome for some carriers. In addition, in 
examining the proposals and comments received, the Commission will 
consider other measures that might give small carriers more relief from 
regulatory requirements. For example, in determining whether to require 
carriers to certify to the Commission that they have provided certain 
notifications to customers, the Commission may consider whether the 
certification requirement should only apply to the sale or transfer of 
subscriber bases of a minimum threshold size. As another example, in 
considering whether to require a purchasing carrier to continue to 
charge affected subscribers the same rates as those charged by the 
selling carrier for a specified period after the transfer, the 
Commission may consider whether small carriers should be exempt from 
such a requirement when acquiring customers through a sale or transfer. 
A third example is that the Commission may consider whether small 
carriers should be permitted to provide notification to the affected 
subscribers and/or the Commission in less than the proposed time period 
of 30 days.
6. Federal Rules That May Overlap, Duplicate, or Conflict With the 
Proposed Rules
    27. None.

B. Ex Parte Presentations

    28. This matter 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.

C. Comment Dates and Filing Procedures

    29. We invite comment on the issues and questions set forth. 
Pursuant to applicable procedures set forth in Secs. 1.415 and 1.419 of 
the Commission's rules, interested parties may file comments as 
follows: Comments are due February 20, 2001 and reply comments are due 
March 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 24,121, May 1, 
1998.
    30. Comments filed through the ECFS can be sent as an electronic 
file via the Internet to http://www.fcc.gov/e-file/ecfs.html. 
Generally, only one copy of an electronic submission must be filed. If 
multiple docket or rulemaking numbers appear in the caption of this 
proceeding, however, 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 
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.
    31. Parties who choose to file by paper should also submit their 
comments on diskette to Sheryl Todd, Accounting Policy Division, Common 
Carrier Bureau, Federal Communications Commission, 445 12th Street, 
SW., Room 5-B540, Washington, DC 20554. Such a submission should be on 
a 3.5 inch diskette formatted in an IBM-compatible format using 
Microsoft Word 97 for Windows or a compatible software. The diskette 
should be accompanied by a cover letter and should be submitted in 
``read-only'' mode. The diskette should be clearly labeled with the 
commenter's name, proceeding, including the lead docket number in the 
proceeding (CC Docket No. 00-257), type of pleading (comment or reply 
comment), date of submission, and the name of the electronic file on 
the diskette. The label should also include the following phrase 
(``Disk Copy Not an Original.'') Each diskette should contain only one 
party's pleadings, preferably in a single electronic file. In addition, 
commenters must send diskette copies to the

[[Page 8098]]

Commission's copy contractor, International Transcription Service, 
Inc., 1231 20th Street, NW., Washington, DC 20037.

IV. Ordering Clauses

    32. Pursuant to the authority contained in sections 1, 4, 201-205, 
and 258 of the Communications Act of 1934, as amended, 47 U.S.C. 151, 
154, 201-205, and 258, that this Third Further Notice of Proposed 
Rulemaking is adopted, that comments are requested as described, and 
that notice is hereby given of proposed amendments to part 64 of the 
Commission's rules, 47 CFR part 64, as described.
    33. The Commission's Consumer Information Bureau, Reference 
Information Center, shall send a copy of this Third Further Notice of 
Proposed Rulemaking, including the Initial Regulatory Flexibility 
Analysis, to the Chief Counsel for Advocacy of the Small Business 
Administration.

List of Subject in 47 CFR Part 64

    Communications common carriers, Reporting and recordkeeping 
requirements, Telephone.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 01-2378 Filed 1-26-01; 8:45 am]
BILLING CODE 6712-01-U