[Federal Register Volume 66, Number 60 (Wednesday, March 28, 2001)]
[Rules and Regulations]
[Pages 16874-16882]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-7708]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 0, 42, 43, 61, 63, and 64

[IB Docket No. 00-202, FCC 01-93]


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

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: This document forbears from the requirement that U.S. non-
dominant interexchange carriers file tariffs for most 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 commercial 
mobile radio services and interexchange carriers, including U.S. 
carriers classified as dominant due to foreign affiliations. The 
Commission believes that the rules and policies contained in the Order 
will foster competition in the U.S. international services market and 
benefit U.S. consumers.

DATES: Effective April 27, 2001. Public and agency comments on the 
request for emergency approval of the information

[[Page 16875]]

collection requirements are due April 11, 2001. Public and agency 
comments on the request for regular approval of the information 
collection requirements are due May 29, 2001.

ADDRESSES: All comments regarding the requests for approval of the 
information collection, both regular and emergency, 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]; phone 202-418-0214. In addition, comments on the 
emergency request for approval of the information collections should be 
submitted to Edward C. Springer, OMB Desk Officer, Room 10236 NEOB, 725 
17th Street, NW, Washington, DC 20503 or via the Internet to 
[email protected].

FOR FURTHER INFORMATION CONTACT: Kathryn O'Brien, Policy and Facilities 
Branch, Telecommunications Division, International Bureau, (202) 418-
1460.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order, FCC 01-93, adopted on March 16, 2001, and released on March 
20, 2001. 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/Orders/2001/. 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.

Summary of Report and Order

    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) (65 FR 66215, November 3, 2000) 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. 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. In addition, pursuant to the Communications Act of 1996, the 
Commission is required 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. In the Order, the Commission adopts a 
policy of complete detariffing for most of the services of non-dominant 
interexchange and commercial mobile radio service (CMRS) carriers.
    3. In the Order the Commission concluded that the Communications 
Act requires the FCC to forbear from applying section 213 of the Act, 
and to adopt a policy of complete detariffing for international 
interexchange services and CMRS provided by non-dominant carriers, with 
limited exceptions for permissive detariffing.
    4. In the Order, the Commission clarified its use of the term 
``interexchange services'' to cover those telecommunications services 
provided between telephone exchanges, not including exchange access 
services.
    5. The Commission reaffirmed its conclusion that the competitive 
state of the international interexchange marketplace no longer requires 
non-dominant carriers to file tariffs to ensure that charges, 
practices, classification or regulations are just and reasonable. In 
the Order, the Commission describes its efforts that have led to the 
competition in the marketplace for international interexchange 
services, which have resulted in significant benefits to consumers. The 
Commission concluded that pursuant to section 11 of the Act, the 
requirement that non-dominant carriers file tariffs pursuant to section 
203 of the Act is unnecessary because of meaningful economic 
competition in the international interexchange marketplace. The Order 
concluded that the Commission's international rules, policies, and 
enforcement authority, in conjunction with market forces and a more 
educated consumer, 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. Thus, tariffs for 
international interexchange services provided by non-dominant carriers 
are no longer necessary to ensure that charges, practices, 
classifications or regulations are just and reasonable and are not 
unjustly or unreasonably discriminatory as required by section 10(a). 
In addition, pursuant to section 11, the Commission concluded that the 
requirement for non-dominant carriers to file tariffs pursuant to 
section 203 of the Act is unnecessary because of meaningful economic 
competition in the interexchange marketplace. The Commission believes 
that its policy of complete detariffing for non-dominant interexchange 
carriers will improve market efficiency by permitting carriers to 
respond to the dynamics of the marketplace and will further the goals 
of sections 201 and 202 of the Act.
    6. The Order concluded that complete detariffing will enhance 
competition and protect consumers against rates, terms and conditions 
that violate the Communications Act because complete detariffing will 
permit carriers to have the flexibility necessary to respond to dynamic 
price and service changes in the marketplace and will best protect 
consumers from the rates, terms and conditions that violate sections 
201 and 202 of the Act.
    7. The Order also concluded that tariffing requirements not only 
impair market efficiency but also permit carriers to harm consumers 
through the application of the ``filed-rate'' doctrine. In this 
proceeding, the Commission has sought to prevent, through the use of 
its forbearance authority granted in section 10, the invocation of the 
``filed-rate'' doctrine and its subsequent potential harm to consumers.
    8. The Order concluded that a policy of complete detariffing will 
produce pro-consumer benefits by forcing carriers to be more responsive 
to customer demands and to offer a greater variety of innovative price 
and service packages. The Commission acknowledged that permissive or 
voluntary detariffing would impede vigorous competition in the market 
for interexchange services by removing the incentives for competitive 
price discounting, reducing or eliminating carriers' ability to make 
rapid, efficient responses to changes in demand and

[[Page 16876]]

cost, imposing costs on carriers that attempt to make new offerings, 
and preventing or discouraging consumers from seeking or obtaining 
service arrangements specifically tailored to their needs.
    9. The Commission concluded that complete detariffing will enhance 
competition and will be in the public interest. However, the Commission 
did find that there were limited exceptions for permissive detariffing 
that would be in the public interest. The Order will allow, on a 
permissive basis, non-dominant interexchange carriers to file tariffs 
for dial-around 1+ services and local exchange carrier (LEC) 
implemented new customer services for a period of forty-five days or 
until there is a written contract between the carrier and customer, 
whichever is earlier, is in the public interest. The Commission found 
that permissive detariffing is appropriate for the provision of 
international inbound collect calls at this time. The Commission 
adopted a policy of permissive detariffing for the non-dominant 
provision of ``on-demand'' Mobile Satellite Services where a customer 
has not entered into a pre-existing ISP service contract for a 
particular provider. The Order amended Sec. 63.11 of the Commission's 
rules to reflect the provisions for permissive detariffing.
    10. The Order required the public disclosure and maintenance of 
information about international interexchange services. This 
information will promote carrier compliance with the requirements of 
the Act and permit consumers to have the information necessary to make 
efficient choices regarding their service plans. Carriers must ensure 
that information is available to the public in at least one location 
during the regular business hours, and those carriers that have 
Internet websites must post this information on-line in a timely an 
easily accessible manner with regular updates. The Order adopts the 
requirement that carriers update their internet websites within twenty-
four hours and update public information sites within five days of the 
effective date of a change in the rates, terms, or conditions of a 
detariffed service. Carriers must inform the public that this 
information is available when responding to consumer inquiries or 
complaints and specify the manner in which consumers may obtain the 
information. Carriers must indicate on the title or first page of their 
cancelled tariffs, the address of their website and of the pubic 
information site. Proprietary information that a carrier would not 
disclose in a public tariff need not be disclosed on-line or elsewhere.
    11. The Order required non-dominant carriers to maintain price and 
service information regarding all of their international interexchange 
offers and be able to submit this information within ten business days 
to the Commission upon request. Such price and service information will 
include the information disclosed to the public, in addition to 
supporting information regarding the rates, terms, and conditions of 
the carriers' international interexchange offerings. Carriers should 
continue to keep the supporting information regarding services that is 
currently required under part 61 of the Commission's rules for carriers 
submitting tariffs. Non-dominant interexchange carriers are required to 
retain the information for a period of at least two years and six 
months following the data that a carrier ceases to provide services on 
such rates, terms and conditions. This requirement will assist the 
Commission in monitoring compliance with the Communications Act and the 
Commission's rules and will help address potential violations that may 
require enforcement action.
    12. The Commission concluded that it is in the public interest to 
extend the policy of complete detariffing to all U.S. non-dominant 
carriers, including those regulated as dominant under Sec. 63.10 of the 
Commission's rules for a specific route because of an affiliation with 
a foreign carrier possessing market power.
    13. The Commission also concluded that it is in the public interest 
to adopt a policy of complete detariffing for international 
interexchange services provided by CMRS providers for affiliate and 
unaffiliated routes. The Commission limited the application of the 
maintenance of information requirement to services provided by a CMRS 
carrier on those affiliated routes where the affiliated foreign carrier 
has market power and collects settlement payments from U.S. carriers. 
In addition, it is unnecessary to extend to CMRS providers the public 
disclosure requirements because such requirements are currently not 
applicable to the provision of domestic cervices by CMRS providers.
    14. The Order amended Sec. 43.51 of the Commission's rules to 
clarify that the rule applies solely to U.S. carrier contracts for 
international common carrier service involving: (1) A foreign carrier 
that has market power in its foreign market, or (2) a U.S. carrier that 
has been classified as dominant on any route for any service included 
in the contract except for U.S. carriers classified as dominant due 
only to a foreign carrier affiliation. The Commission maintained its 
authority under section 211 to require the filing of copies of 
contracts when it is necessary for implementation and review of 
compliance with our rules and policies.
    15. Finally, the Order adopted a transition period of nine-months 
from the effective date of this order to allow non-dominant carriers to 
cancel their tariffs for international interexchange services and 
become compliant with the rules contained herein. The Commission will 
not allow the filing of new or revised contract tariffs or other long-
term arrangements for international interexchange services during the 
transition period. The Commission delegated to the International Bureau 
the authority to address the other transition issues related to 
international detariffing that may arise when the rules become 
effective.

Procedural Matters

    16. Final Regulatory Flexibility Certification. The Regulatory 
Flexibility Act of 1980, as amended (RFA), requires that a regulatory 
flexibility analysis be prepared for rulemaking proceedings, unless the 
agency certifies that ``the rule will not have a significant economic 
impact on a substantial number of small entities.'' The RFA generally 
defines the term ``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). An Initial Regulatory Flexibility 
Analysis (IRFA) was incorporated in the NPRM. The Commission sought 
written public comment on the proposals in the NPRM, including comment 
on the IRFA. The Final Regulatory Flexibility Certification is attached 
as Attachment A.
    17. Paperwork Reduction Act. The Commission, as part of its 
continuing effort to reduce paperwork burden, invites the general pubic 
and other Federal agencies to take this opportunity to comment on the 
following information collection, as required by the Paperwork 
Reduction Act of 1995 (PRA), Public Law 104-13. An agency may not 
conduct or sponsor a collection of information unless it displays a 
currently valid control number. No person shall be submit to

[[Page 16877]]

any penalty for failing to comply with a collection of information 
subject to the Paperwork Reduction Act that does not display a valid 
control number. This document contains new or modified information 
collections subject to the PRA. It will be submitted to the Office of 
Management and Budget (OMB) for review under the emergency processing 
provisions of the PRA. The Commission as part of its continuing effort 
to reduce paperwork burdens, invites the general public to comment on 
the information collection(s) contained in this Order as required by 
the PRA. Comments on emergency request for approval of information 
collections are due on or before April 11, 2001. Public and agency 
comments on the regular request for approval of the information 
collections are due on or before May 29, 2001. Comments should address 
the following: (a) Whether the new or modified 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 estimate; (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: 3060-NEW.
    Title: Policy and Rules Concerning the International Interexchange 
Marketplace.
    Form Number: N/A.
    Type of Review: New Collection.
    Respondents: Business and other for-profit entities.
    Number of Respondents: 1,006.
    Number of Responses: 202.
    Estimated Time Per Response: For part 61 filings, we estimate 10.5 
hours per response. For Sec. 43.10-11, we estimate 3 hours. For 
Sec. 43.51 filings, we estimate 5 hours per response.
    Frequency of Response: On Occasion.
    Total Annual Burden: 10,500 hours.
    Total Annual Costs: $84,000.
    Needs and Uses: The information will be used by the public and the 
Commission to determine whether the rates, terms and conditions of 
service offered are just and reasonable as the Act requires. The 
information will be used by the Commission to assist the Commission in 
addressing potential violations of the Communications Act and the 
Commission's rules, which may require enforcement action. Also, the 
information will be used by other carriers and the Commission to guard 
against anticompetitive activities by U.S. and foreign carriers.

Ordering Clauses

    18. Accordingly, It is Ordered, that, 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 Report and 
Order is Adopted.
    19. It is Ordered that, the Commission's Consumer Information 
Bureau, Reference Information Center shall send a copy of this Report 
and Order, including the final regulatory flexibility analysis, to the 
Chief Counsel for Advocacy of the Small Business Administration.
    20. It is Further Ordered that, the policies, rules and 
requirements established in this decision shall take effect thirty days 
after publication in the Federal Register or in accordance with the 
requirements of 5 U.S.C. 801 (a)(3) and 44 U.S.C. 3507.

List of Subjects

47 CFR Part 0

    Reporting and Recordkeeping requirements.

47 CFR Part 20

    Communications common carriers.

47 CFR Parts 42, 43, 61, 63, and 64

    Communications common carriers, Reporting and recordkeeping 
requirements.

Federal Communications Commission.
LaVera F. Marshall,
Chief, Agenda Group.

Attachment A

    1. The Regulatory Flexibility Act of 1980, as amended (RFA), 
requires that a regulatory flexibility analysis be prepared for 
rulemaking proceedings, unless the agency certifies that ``the rule 
will not have a significant economic impact on a substantial number of 
small entities.'' The RFA generally defines the term ``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). An Initial Regulatory Flexibility Analysis (IRFA) was 
incorporated in the NPRM. The Commission sought written public comment 
on the proposals in the NPRM, including comment on the IRFA. The one 
comment received on the IRFA is discussed below.
    2. There have been dramatic changes in the market for international 
interexchange services due to the increase in privatization and 
liberalization of foreign markets, the execution of the WTO Basic 
Telecom Agreement, the decrease in settlement rates, and the increase 
in competition in the U.S. international services market. These changes 
have resulted in a substantial increase in the level of competition in 
the international interexchange services marketplace. Therefore, we 
believe it is no longer necessary to require tariffs for international 
interexchange services under section 203 of the Act, except for 
carriers classified as dominant for particular services on particular 
routes for reasons other than a foreign carrier affiliation under 
Sec. 63.10 of the rules. The Commission concludes that detariffing 
international interexchange services will serve to promote further the 
pro-competitive goals of the 1996 Telecommunications Act and foster 
increased competition. The Order requires complete or mandatory 
detariffing, with limited exceptions, for the international 
interexchange services provided by non-dominant carriers. The rules and 
policies contained in the Order apply to all carriers providing 
international common carrier service pursuant to section 214 of the Act
    3. We believe that this Order will reduce carriers' filing costs. 
Although eliminating the filing of tariffs with the Commission, the 
Order does require that non-dominant interexchange carriers make 
information available to the public concerning current rates, terms, 
and conditions for all international interexchange services, in at 
least one location during regular business hours. Carriers that have 
Internet websites also must post this information on-line. The Order 
also requires that non-dominant international carriers, with the 
exception of most commercial mobile service providers, maintain price 
and service information regarding all of their international service 
offerings. This price and service information should include the 
information covered by the public disclosure requirement as well as 
supporting documents for the rates, terms and conditions of the 
offerings. The Order does not standardize the maintenance of 
information and public disclosure requirements so that carriers may 
maintain and disclose their rate information in a manner that is 
consistent with those business practices. These public disclosure and 
maintenance requirements are nominal because the information is 
currently

[[Page 16878]]

maintained by all carriers, including small entities, in the normal 
course of business; and therefore, do not impose a significant economic 
impact on these small entities.
    4. In addition, the Order reduces the filing of carrier-to-carrier 
contracts contained in Sec. 43.51. The Order clarifies that Sec. 43.51 
applies solely to U.S. carrier contracts for international common 
carrier service involving: (1) A foreign carrier that has market power 
in its foreign market, or (2) a U.S. carrier that has been classified 
as dominant, for any service, on any route included in the contract, 
except for U.S. carriers classified as dominant due only to a foreign 
carrier affiliation. The Order eliminates the current requirement in 
Sec. 43.51(a)(3) that carriers file contracts related to rights granted 
by foreign governments, and stipulates that the Commission may obtain 
contracts and seek remedies against improper activity through the 
section 208 complaint process initiated by either a competitor or the 
Commission. These modifications to the rules eliminate filing 
requirements on small entities and therefore, do not pose a significant 
economic impact on such entities.
    5. The Commission has identified instances when tariffs will be 
permitted. The Commission's rules will permit carriers, including small 
entities, to file tariffs for their services with respect to 
international interexchange direct-dial services initiated by dialing a 
carrier's access code; and 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, but in no 
event shall the carrier provide service to its customer pursuant to 
tariff for more than forty-five days. The Order also adopts permissive 
detariffing for those ``on-demand'' mobile satellite services (MSS) 
services for which customers have not entered into pre-existing service 
contracts designating a particular provider. Finally, the Order also 
adopts permissive detariffing for international inbound collect calls. 
Carriers that permissively file tariffs under the Commission's rules 
will not be required to file information in addition to what is 
currently required. Therefore, these rules do not increase burdens on 
small entities, nor do they create a significant economic impact.
    6. Therefore, we certify that none of the requirements of the Order 
will have a significant economic impact on a substantial number of 
small entities.
    7. Only one commenter, Global Telecompetition Consultants, Inc. 
(GTC), addresses the issue of the RFA. GTC argues that the Commission 
did not perform the proper analysis in the RFA contained in the prior 
domestic detariffing proceeding. GTC raises this issue in this 
international detariffing proceeding because the international 
detariffing NPRM relies on the principles adopted in the domestic 
detariffing proceeding.
    8. GTC's arguments focus on the ``filed-rate'' doctrine. GTC 
construes the Commission's statements, both in the domestic proceeding 
and in the international detariffing NPRM, that complete detariffing 
will eliminate the possible invocation of the ``filed-rate'' doctrine, 
as ``doing away with'' the filed rate doctrine. GTC argues that 
detariffing, whether domestic or international, is not equivalent to 
the abolition of the ``filed-rate'' doctrine, which is a judicially-
created doctrine that the Commission cannot overturn. Thus, GTC claims 
that the Commission exceeded its jurisdiction and acted arbitrarily and 
capriciously in its analysis of how complete detariffing would 
eliminate the ``filed-rate'' doctrine. Further, GTC claims that the 
Commission violated the RFA by engaging in a perfunctionary analysis of 
complete detariffing's effect on the ``filed-rate'' doctrine and how 
its elimination of the doctrine would affect small carriers. GTC does 
not, however, cite to any specific harms caused small carriers from 
either domestic or international detariffing.
    9. We disagree with GTC's argument that, by ordering complete 
detariffing, the Commission has purported to ``overturn'' a judicial 
doctrine. Rather than ``doing away with'' the filed-rate doctrine, the 
Commission in the domestic and international proceedings has simply 
exercised its forbearance authority granted in section 10 of the Act. 
Congress expressly empowered the Commission to forbear in certain 
circumstances from the statutory provisions of the Act. The 
Commission's statutory authority in section 10 to forbear from applying 
section 203 of the Act and to prohibit the filing of tariffs has been 
upheld by the U.S. Court of Appeals for the D.C. Circuit. Moreover, 
commenters concur that, in light of the D.C. Circuit's ruling, the 
Commission has the authority to require international carriers to 
cancel their tariffs. As the Commission explained in the domestic 
proceeding, the ``filed-rate'' doctrine has been applied to the rates, 
terms, and conditions of services specified in tariffs that are ``duly 
filed'' with the Commission in accordance with section 203 of the Act. 
Therefore, in the context of complete detariffing, if the Commission 
prohibits the filing of tariffs under section 10, there are no tariffs 
``duly filed'' with the Commission and carriers have no opportunity to 
invoke the ``filed-rate'' doctrine. Because we reject GTC's 
interpretation of the Commission's action, we also dismiss GTC's 
argument that we have engaged in arbitrary and capricious 
decisionmaking in proposing to detariff international services.
    10. We further note that, although there are similar policy 
rationales for detariffing domestic and international interexchange 
services, the Commission developed an independent record for 
detariffing international interexchange services in this proceeding. 
Thus, the Commission does not rely on the analysis contained in the 
domestic detariffing proceeding, but rather analyzes the full impact of 
the policies contained in this Order on all parties including small 
businesses. As noted above, the Commission incorporated an IRFA in the 
NPRM in this proceeding. The Commission tentatively concluded in the 
IRFA that its detariffing proposals were the least burdensome 
alternatives on small entities and that eliminating the tariff 
requirement would reduce administrative costs to all entities, 
including small entities. The Commission sought comment on those 
tentative conclusions. In this Order, we affirm the tentative 
conclusions in the NPRM and determine that complete detariffing will 
permit all carriers, including small carriers, to have the flexibility 
necessary to respond to dynamic price and service changes in the 
marketplace and will best protect consumers from the rates, terms and 
conditions that violate the Communications Act.
    11. Report to Congress: The Commission will send a copy of the 
Order, including a copy of the Final Regulatory Flexibility 
Certification, in a report to Congress pursuant to the Small Business 
Regulatory Enforcement Fairness Act of 1996. In addition, the 
Commission will send a copy of the Order, including a copy of the Final 
Regulatory Flexibility Certification, to the Chief Counsel for Advocacy 
of the SBA. A copy of the Order and Final Regulatory Flexibility 
Certification will also be published in the Federal Register.

Rule Changes

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR parts 0, 20, 42, 43, 61, 63 and 
64 as follows:

[[Page 16879]]

PART 0--COMMISSION ORGANIZATION

    1. The authority citation for part 0 continues to read as follows:

    Authority: Secs. 5, 48 Stat. 1068, as amended; 47 U.S.C. 155.


    2. Section 0.457 is amended by revising paragraph (d)(1)(vi) to 
read as follows:


Sec. 0. 457  Records not routinely available for public inspection.

* * * * *
    (d) * * *
    (1) * * *
    (vi) The rates, terms and conditions in any agreement between a 
U.S. carrier and a foreign carrier that govern the settlement of U.S. 
international traffic, including the method for allocating return 
traffic, if the U.S. international route is exempt from the 
international settlements policy under Sec. 43.51(e)(3) of this 
Chapter.
* * * * *

PART 20--COMMERCIAL MOBILE RADIO SERVICES

    3. 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.


    4. 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, 
interstate access service, or international and interstate operator 
service. Sections 1.771 through 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, interstate access service, and 
international and interstate operator service.
    (d) Except as specified as in paragraphs (d)(1) and (2), 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.
    (1) Notwithstanding the provisions of Sec. 63.21(c) of this 
chapter, a commercial mobile radio service provider is not required to 
comply with Sec. 42.10 of this chapter.
    (2) A commercial mobile radio service (CMRS) provider that is 
classified as dominant under Sec. 63.10 of this chapter due to an 
affiliation with a foreign carrier is required to comply with 
Sec. 42.11 of this chapter if the affiliated foreign carrier collects 
settlement payments from U.S. carriers for terminating U.S. 
international switched traffic at the foreign end of the route. Such a 
CMRS provider is not required to comply with Sec. 42.11, however, if it 
provides service on the affiliated route solely through the resale of 
an unaffiliated facilities-based provider's international switched 
services.
    (3) For purposes of paragraphs (d)(1) and (2) of this section, 
affiliated and foreign carrier are defined in Sec. 63.09 of this 
Chapter.
* * * * *

PART 42--PRESERVATION OF RECORDS OF COMMUNICATIONS COMMON CARRIERS

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

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


    6. 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.
* * * * *
    7. 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 (CMRS) provider shall maintain such price and 
service information only about its international common carrier service 
offerings and only for those routes on which the CMRS provider is 
classified as dominant under Sec. 63.10 of this Chapter due to an 
affiliation with a foreign carrier that collects settlement payments 
from U.S. carriers for terminating U.S. international switched traffic 
at the foreign end of the route. Such a CMRS provider is not required 
to maintain its price and service information, however, on any such 
affiliated route if it provides service on that route solely through 
the resale of an unaffiliated facilities-based provider's international 
switched services. 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. For purposes of this paragraph, affiliated and foreign carrier 
are defined in Sec. 63.09 of this Chapter.
* * * * *

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

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

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


    9. Section 43.51 is revised to read as follows:


Sec. 43.51  Contracts and concessions.

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

[[Page 16880]]

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 communication common carriers must comply with 
the requirements of paragraph (a) of this section:
    (1) A 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 carrier, other than a provider of commercial mobile radio 
services, that is engaged in foreign communications and enters into a 
contract, agreement, concession, license, authorization, operating 
agreement or other arrangement and amendments thereto with a foreign 
carrier that does not qualify for the presumption, set forth in Note 3 
to this section, that it lacks market power on the foreign end of one 
or more of the international routes included in the contract, or
    (3) A carrier that has been classified as dominant for any service 
on any of the international routes included in the contract, except for 
a carrier 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) Except as provided in 
paragraph (e)(3) of this section, if a carrier files an operating or 
other agreement with a foreign carrier pursuant to paragraph (a) of 
this section 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 under 
Sec. 64.1001 of this chapter. Unless a carrier is providing switched 
voice, telex, telegraph, or packet-switched service on a route 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) Except as provided in paragraph (e)(3) of this section, if a 
carrier files an amendment, pursuant to paragraph (a) of this section, 
to an existing operating or other agreement with a foreign carrier 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 under Sec. 64.1001 of this Chapter.
    (3) A carrier that enters into an operating or other agreement with 
a foreign carrier for the provision of a common carrier service on an 
international route is not subject to the requirements of paragraphs 
(e)(1) and (2) of this section if the route 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 service on 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 shall clearly identify the filing as responsive 
to Sec. 43.51(f).

    Note 1 to Sec. 43.51: For purposes of this section, affiliated 
and foreign carrier are defined in Sec. 63.09 of this chapter.


    Note 2 to Sec. 43.51: To the extent that a foreign government 
provides telecommunications services directly through

[[Page 16881]]

a governmental organization, body or agency, it shall be treated as 
a foreign carrier for the purposes of this section.


    Note 3 to Sec. 43.51: Carriers shall 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 of their foreign carrier contracts 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

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

    Authority: Secs. 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.

    11. Section 61.3 is amended by revising paragraph (y) to read as 
follows:


Sec. 61.3  Definitions.

* * * * *
    (y) 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 under Sec. 63.10 of this chapter.
* * * * *

    12. 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) through (e) 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.
    (d) Carriers that are nondominant in the provision of international 
inbound collect calls to the United States are permitted to file a 
tariff for such services.
    (e) Carriers that are nondominant in the provision of ``on-demand'' 
Mobile Satellite Services are permitted to file a tariff for such 
services applicable to those customers that have not entered into pre-
existing service contracts designating a specific provider for such 
services.

    13. 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 under 
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 paragraph (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.


Sec. 61.74  [Amended]

    14. 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

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

    Authority: Secs. 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.


    16. Section 63.10 is amended by removing paragraph (c)(1) and 
redesignating paragraphs (c)(2) through (6) as paragraphs (c)(1) 
through (5).

    17. Section 63.14 is amended by revising paragraph (c) to read as 
follows:


Sec. 63.14  Prohibition on agreeing to accept special concessions.

* * * * *
    (c) This section shall not apply to the rates, terms and conditions 
in an agreement between a U.S. carrier and a foreign carrier that 
govern the settlement of international traffic, including the method 
for allocating return traffic, if the international route is exempt 
from the international settlements policy under Sec. 43.51(e)(3) of 
this chapter.

    18. 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;
* * * * *

    19. 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.

* * * * *

[[Page 16882]]

    (b) Carriers must file copies of operating agreements entered into 
with their foreign correspondents as specified in Sec. 43.51 of this 
chapter and shall otherwise comply with the filing requirements 
contained in that section.
    (c) Carriers regulated as dominant for the provision of a 
particular international communications service 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 
Communications Act, 47 U.S.C. 203, and part 61 of this chapter. Except 
as specified in Sec. 20.15(d) of this chapter with respect to 
commercial mobile radio service providers, carriers regulated as non-
dominant, as defined in Sec. 61.3 of this chapter, and providing 
detariffed international 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.
* * * * *

PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS

    20. The authority citation for part 64 continues to read as 
follows:

    Authority: 47 U.S.C. 154, 47 U.S.C. 225, 47 U.S.C. 251(e)(1), 
151, 154, 201, 202, 205, 218-220, 254, 302, 303, and 337 unless 
otherwise noted.

    21. Section 64.1001 is amended by revising paragraph (b) to read as 
follows:


Sec. 64.1001  International settlements policy and modification 
requests.

* * * * *
    (b) If the international settlement arrangement in the operating 
agreement or amendment referred to in Sec. 43.51(e)(1) or (e)(2) of 
this chapter differs from the arrangement in effect in the operating 
agreement of another carrier providing service to or from the same 
foreign point, the carrier must file a modification request under this 
section unless the international route is exempt from the international 
settlements policy under Sec. 43.51(e)(3) of this chapter.
* * * * *
[FR Doc. 01-7708 Filed 3-27-01; 8:45 am]
BILLING CODE 6712-01-U