[Federal Register Volume 66, Number 82 (Friday, April 27, 2001)]
[Rules and Regulations]
[Pages 21105-21106]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-10493]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 64

[CC Docket No. 96-128; FCC 01-109]


The Pay Telephone Reclassification and Compensation Provisions of 
The Telecommunications Act of 1996, RBOC/GTE/SNET Payphone Coalition 
Petition for Clarification

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Federal Communications Commission (FCC 
or Commission) modified the Commission's rules regarding per-call 
compensation for payphone calls to better ensure that payphone service 
providers (PSPs) are fairly compensated for all completed, coinless 
calls made from payphones. The Commission revised its rules to address 
the difficulty that PSPs face in obtaining compensation for coinless 
calls placed from payphones that involve a switch-based 
telecommunications reseller in the call path. Given the difficulty of 
determining which entity is responsible for compensating the PSP for 
such calls (i.e., the switch-based reseller or the interexchange 
carrier that routes calls to the switch-based reseller), the Commission 
modified its rules to require the first underlying facilities-based 
interexchange carrier (IXC) to whom the local exchange carrier (LEC) 
directly delivers such calls to compensate the PSP for the completed 
coinless calls.

DATES: Effective April 27, 2001.

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

FOR FURTHER INFORMATION CONTACT: Marty Schwimmer (202) 418-2320, fax 
(202) 418-2345, TTY (202) 418-0484, or [email protected]. The address 
is: Network Services Division, Common Carrier Bureau, Federal 
Communications Commission, The Portals, 445 12th Street, SW., Suite 6-
A320, Washington, DC 20554.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Second 
Order on Reconsideration in CC Docket No. 96-128, FCC 01-109, in the 
matter of The Pay Telephone Reclassification and Compensation 
Provisions of the Telecommunications Act of 1996, RBOC/GTE/SNET 
Payphone Coalition Petition for Clarification, adopted March 28, 2001, 
and released April 5, 2001. The full text of the item is available for 
inspection and copying during the weekday hours of 9 a.m. to 4:30 p.m. 
in the Commission's Reference Center, Room CY-A257, 445 12th Street, 
SW., Washington, DC 20554, or copies may be purchased from the 
Commission's duplicating contractor, ITS, Inc., 445 12th Street, SW., 
Suite CY-B400, Washington, DC 20554, phone (202) 857-3800. This Order 
contains no new or modified information collections subject to the 
Paperwork Reduction Act of 1995, Public Law 104-13.

Synopsis of the Second Order on Reconsideration

    In implementing Section 276 of the Act--which requires the 
Commission to prescribe regulations ensuring that all PSPs are fairly 
compensated for every completed intrastate and interstate call, 
including coinless ``access code'' or ``subscriber 800'' calls dialed 
from their payphones--the Commission adopted several payphone 
compensation rules in its First Payphone Order, 61 FR 52309, October 7, 
1996. In the Payphone Order On Reconsideration, 61 FR 65341, December 
12, 1996, the Commission revised the payphone compensation 
responsibilities for calls involving switch-based resellers. In 1998, 
the Common Carrier Bureau released the Coding Digit Waiver Order, 63 FR 
26497, May 13, 1998, further clarifying the Payphone Order on 
Reconsideration. In that Order, the Common Carrier Bureau clarified 
switch-based reseller responsibilities for paying per-call compensation 
in order to clarify IXC obligations to disclose information about their 
switch-based resellers. The purpose of that order was to help ensure 
that PSPs knew from whom to expect compensation for coinless calls, to 
avoid the problem of entities disclaiming responsibility for such 
calls. Finally, in a recent order, the Commission concluded that the 
Payphone Order on Reconsideration and the Common Carrier Bureau's 
Coding Digit Waiver Order placed the tracking and compensation 
obligations squarely on facilities-based carriers, including 
facilities-based resellers. We found that, despite of our efforts to 
ensure that PSPs are compensated for coinless calls in instances in 
which switch-based resellers are involved in routing coinless calls 
from payphones to end-users, there remained uncertainty in the market, 
and PSPs have been frustrated in their efforts to receive compensation 
for certain coinless calls.
    In this Second Order on Reconsideration, we require the first 
facilities-based interexchange carrier to which a LEC routes a 
compensable coinless payphone call to: (1) Compensate the PSP for 
completed calls at a mutually agreeable rate; (2) track or arrange for 
tracking of the call to determine whether it is completed and therefore 
compensable; and (3) provide to the PSP a statement of the number of 
coinless calls it receives from each of that PSP's payphones. We also 
require each reseller or debit card customer whose number is dialed on 
a coinless basis to reimburse the first facilities-based carrier for 
the amount paid by that carrier to the PSP and for that carrier's cost 
of tracking the call and providing such information to the PSP. We also 
encourage PSPs and switch-based resellers to enter into private 
contractual arrangements with each other for direct payment of 
compensation to PSPs.
    We decline to initiate a further rulemaking proceeding, at this 
time, which would propose that the carrier responsible for compensation 
is the entity identified by the Carrier Identification Code (CIC) used 
to route the call. Most commenters generally opposed the proposal. For 
the purpose of determining payphone compensation responsibilities, the 
proposal would not likely be an improvement over the existing rules as 
clarified in this Second Order on Reconsideration. Even if all carriers 
had CICs, they would still need to look to subsequent carriers in the 
routing sequence for payphone call completion information to fulfill 
their compensation responsibilities. By ensuring that PSPs are 
consistently able to obtain per call compensation from a readily 
identifiable, responsible carrier, the first facilities-based 
interexchange carrier, we resolve the issues before us without a 
further rulemaking on CICs at this time.

Regulatory Flexibility Act

    Under the Regulatory Flexibility Act, 5 U.S.C. 605(b), there will 
not be a significant economic impact on a substantial number of small 
business entities resulting from this Second Order on Reconsideration. 
Although the revised rules provide that the first underlying 
facilities-based interexchange carrier is initially responsible for 
payment and tracking of all compensable payphone calls, the

[[Page 21106]]

rules also provide that the first underlying facilities-based 
interexchange carrier may then obtain reimbursement from any reseller 
ultimately responsible for the compensation. Thus, although this Second 
Order on Reconsideration modifies the mechanism governing how PSPs 
obtain compensation, the rules do not significantly affect which 
carrier is ultimately responsible for per-call compensation to PSPs.

Ordering Clauses

    Pursuant to the authority contained in Sections 1, 4(i), 4(j), and 
276 of the Communications Act of 1934, as amended, 47 U.S.C. 151, 
154(i), 154(j), and 276, that the RBOC/GTE/SNET Payphone Coalition 
Petition for Clarification is GRANTED IN PART AND DENIED IN PART, as 
described in this Second Order on Reconsideration.
    Part 64 of the Commission's rules, 47 CFR Part 64, is amended by 
revising Secs. 64.1300(a), 64.1310(a), and 64.1310(b) as set forth in 
the rule changes.

List of Subjects in 47 CFR Part 64

    Communications common carriers, Individuals with disabilities, 
Reporting and recordkeeping requirements, Telegraph, Telephone.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.

Rule Changes

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR Part 64 as follows:

PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS

    1. 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. Interpret or apply sections 201, 218, 225, 
226, 227, 229, 332, 48 Stat. 1070, as amended. 47 U.S.C. 201-204, 
208, 225, 226, 227, 229, 332, 501 and 503 unless otherwise noted.

    2. Section 64.1300 is amended by revising paragraph (a) to read as 
follows:


Sec. 64.1300  Payphone compensation obligation.

    (a) Except as provided herein, the first facilities-based 
interexchange carrier to which a completed coinless access code or 
subscriber toll-free payphone call is delivered by the local exchange 
carrier shall compensate the payphone service provider for the call at 
a rate agreed upon by the parties by contract.
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    3. Section 64.1310 is amended by revising paragraphs (a) and (b) to 
read as follows:


Sec. 64.1310  Payphone compensation payment procedures.

    (a) It is the responsibility of the first facilities-based 
interexchange carrier to which a compensable coinless access code or 
subscriber toll-free payphone call is delivered by the local exchange 
carrier to track, or arrange for the tracking of, each such call so 
that it may accurately compute the compensation required by 
Sec. 64.1300(a). The first facilities-based interexchange carrier to 
which a compensable coinless payphone call is delivered by the local 
exchange carrier must also send back to each payphone service provider 
at the time dial around compensation is due to be paid a statement in 
computer readable format indicating the toll-free and access code 
numbers that the LEC has delivered to the carrier, and the volume of 
calls for each toll-free and access number each carrier has received 
from each of that payphone service provider's payphones, unless the 
payphone service provider agrees to other arrangements.
    (b) The first facilities-based interexchange carrier to which a 
compensable coinless payphone call is delivered by the local exchange 
carrier may obtain reimbursement from its reseller and debit card 
customers for the compensation amounts paid to payphone service 
providers for calls carried on their account and for the cost of 
tracking compensable calls. Facilities-based carriers and resellers may 
establish or continue any other arrangements that they have with 
payphone service providers for the billing and collection of 
compensation for calls subject to Sec. 64.1300(a), if the involved 
payphone service providers so agree.
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[FR Doc. 01-10493 Filed 4-26-01; 8:45 am]
BILLING CODE 6712-01-U