[Federal Register Volume 66, Number 22 (Thursday, February 1, 2001)]
[Rules and Regulations]
[Pages 8519-8520]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-2760]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 51

[FCC 01-21]


Procedures for Arbitrations Conducted in Accordance With the 
Communications Act of 1934

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: The Commission amends on its own motion a section of the rules 
in which FCC arbitrators are granted additional discretion when 
arbitrating interconnection disputes.

DATES: Effective February 1, 2001.

FOR FURTHER INFORMATION CONTACT: William Kehoe, Special Counsel, Common 
Carrier Bureau, Policy and Program Planning Division, (202) 418-1580.

SUPPLEMENTARY INFORMATION: This is a summary of the amendment to 47 CFR 
51.807 in the Commission's Order, FCC 01-21, adopted January 17, 2001 
and released January 19, 2001. The complete text of this Order is 
available for inspection and copying during regular business hours in 
the FCC Reference information Center, Courtyard Level, 445 12th Street, 
SW., Washington, DC, and also may be purchased from the Commission's 
copy contractor, International Transcription Services (ITS, Inc.), CY-
B400, 445 12th Street, SW., Washington, DC.

Synopsis of the Amendment to Section 51.807

    1. The Commission adopted an interim rule in the Local Competition 
Order establishing a scheme of ``final offer'' arbitration for section 
252(e)(5) proceedings. This rule provides that, in issuing an 
arbitration award, the arbitrator ``shall use final offer 
arbitration,'' which may take the form of either entire package final 
offer arbitration or issue-by issue final offer arbitration.'' 47 CFR 
51.807(d)(1). If the parties' offers do not meet the standards of 
section 251, the arbitrator may require the parties to submit 
additional final offers or may adopt a result offered by neither party. 
47 CFR 51.807(f)(3) (1999).
    2. Experience gained by states in arbitrating numerous 
interconnection disputes over the past five years suggest that ``final 
offer'' arbitration may not always afford the arbitrator sufficient 
flexibility to resolve complex interconnection issues. Accordingly, the 
Commission amends Sec. 51.807(f)(3) to

[[Page 8520]]

provide the arbitrator additional flexibility in certain circumstances. 
The arbitrator shall have discretion to require the parties to submit 
new final offers, or adopt a result not submitted by any party, in 
circumstances where a final offer submitted by one or more of the 
parties fails to comply with the Act or the Commission's rules. There 
may be some unique circumstances where, even though the parties submit 
a final offer that complies with the Act and the Commission's rules, 
the arbitrator will have a basis for concluding that another result is 
more consistent with the requirements of section 252(c) of the Act, and 
the Commission's rules, although we do not identify those circumstances 
here.
    3. Because this rule is a rule of agency procedure and practice, it 
may be adopted without affording prior notice and opportunity for 
comment. See 5 U.S.C. 553(b)(3)(A). In addition, we find good cause to 
make this change effective upon publication in the Federal Register. 
See 5 U.S.C. 553(d)(3). In an order released contemporaneously 
herewith, the Commission has preempted the jurisdiction of the 
Commonwealth of Virginia State Corporation Commission and therefore may 
soon need to begin the process of arbitrating complex interconnection 
agreement issues among carriers in Virginia. This rule change is 
necessary to facilitate the efficient and expeditious discharge of the 
Commission's statutory responsibility in the Virginia arbitration 
proceeding pursuant to section 252 of the Communications Act.

Paperwork Reduction Act

    4. The action contained herein has been analyzed with respect to 
the Paperwork Reduction Act of 1995 and found to impose new or modified 
reporting and recordkeeping requirements or burdens on the public.

Regulatory Flexibility Analysis

    5. The action contained herein relates to agency procedure and 
practice and does not change the Commission's Regulatory Flexibility 
Analysis in connection with the amended rule.

Ordering Clauses

    4. This Order is effective February 1, 2001.
    5. Pursuant to sections 4(i ), 4(j), 201(b), 303(r), 251, and 252 
of the Communications Act of 1934, as amended, 47 U.S.C. 154(i), 
154(j), 201(b), 303(r), 251, and 252, that the amendment to Sec. 51.807 
is adopted as set forth in the appendix to this Order, to be effective 
February 1, 2001.

List of Subjects in 47 CFR Part 51

    Communications common carriers, Telecommunications, Telephone, 
Arbitration.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.

Rule Changes

    For the reasons set forth in the preamble, amend Part 51 of 47 CFR 
as follows:
    1. The authority citation for part 51 continues to read:

    Authority: 47 U.S.C. 154(i), 154(j), 201(b), 303 (r), 251, and 
252.

    2. Revise Sec. 51.807, paragraph (f)(3) to read as follows:


Sec. 51.807  Arbitration and mediation of agreements by the Commission 
pursuant to section 252(e)(5) of the Act.

* * * * *
    (f) * * *
    (3) Provide a schedule for implementation of the terms and 
conditions by the parties to the agreement. If a final offer submitted 
by one or more parties fails to comply with the requirements of this 
section or if the arbitrator determines in unique circumstances that 
another result would better implement the Communications Act, the 
arbitrator has discretion to take steps designed to result in an 
arbitrated agreement that satisfies the requirements of section 252(c) 
of the Act, including requiring parties to submit new final offers 
within a time frame specified by the arbitrator, or adopting a result 
not submitted by any party that is consistent with the requirements of 
section 252(c) of the Act, and the rules prescribed by the Commission 
pursuant to that section.
* * * * *
[FR Doc. 01-2760 Filed 1-31-01; 8:45 am]
BILLING CODE 6712-01-U