[Federal Register Volume 66, Number 191 (Tuesday, October 2, 2001)]
[Proposed Rules]
[Pages 50139-50140]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-24569]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 64

[CC Docket No. 00-175; FCC 01-261]


2000 Biennial Regulatory Review Separate Affiliate Requirements 
of Independent Local Exchange Carriers

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: This document institutes a broad-based reexamination of part 
64, subpart T of the Commission's rules, which establishes safeguards 
for the provision of in-region interexchange services by incumbent 
independent local exchange carriers. In this document the Commission 
invites comment on whether the benefits of the separate affiliate 
requirement for facilities-based providers continue to outweigh the 
costs and whether there are alternative safeguards that are as 
effective but impose fewer regulatory costs.

DATES: Comments due on or before November 1, 2001 and Reply Comments 
due on or before November 23, 2001.

FOR FURTHER INFORMATION CONTACT: Jessica Rosenworcel, Attorney Advisor, 
Policy and Program Planning Division, Common Carrier Bureau, (202) 418-
1580.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Proposed Rulemaking (NPRM) in CC Docket No. 01-175, FCC 01-261, 
adopted September 13, 2001, and released September 14, 2001. The 
complete text of this Notice of Proposed Rulemaking is available for 
inspection and copying during normal business hours in the FCC 
Reference Information Center, Portals II, 445 12th Street, SW., Room 
CY-A257, Washington, DC 20554. This document may also be purchased from 
the Commission's duplicating contractor, Qualex International, Portals 
II, 445 12th Street, SW., Room CY-B402, Washington, DC 20554, telephone 
202-863-2893, facsimile 202-863-2898, or via e-mail [email protected]. 
It is also available on the Commission's website at http://www.fcc.gov.

Synopsis of the Notice of Proposed Rulemaking

    1. Under Sec. 64.1903 of the Commission's rules, incumbent 
independent local exchange carriers (LECs) providing facilities-based, 
in-region, interexchange service must do so through a separate 
corporate affiliate. In this document the Commission invites interested 
parties to comment on whether application of the separate affiliate 
requirement for incumbent independent LECs continues to serve the 
public interest. The Commission first asks a series of questions 
intended to elicit information regarding the number of incumbent 
independent LECs providing in-region, interexchange service on either a 
facilities or resale basis. In addition, the Commission asks for 
comment on whether or not the benefits of this separate affiliate 
requirement outweigh the regulatory and economic costs involved. 
Finally, the Commission seeks comment on possible alternative 
safeguards, including proposals for applying the

[[Page 50140]]

separate affiliate requirement to a more limited category of incumbent 
independent LECs.

Initial Regulatory Flexibility Analysis

    2. As required by the Regulatory Flexibility Act (RFA), as 
amended,\1\ the Commission has prepared this Initial Regulatory 
Flexibility Analysis (IRFA) of the expected economic impact on small 
entities by the policies and rules proposed in this NPRM. Written 
public comments are requested on this IRFA. Comments must be identified 
as responses to the IRFA and must be filed by the deadlines for 
comments on the NPRM. The Commission will send a copy of the NPRM, 
including this IRFA, to the Chief Counsel for Advocacy of the Small 
Business Administration.
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    \1\ 5 U.S.C. 603. The RFA, see 5 U.S.C. 601 et seq., has been 
amended by the Contract With America Advancement Act of 1996, Public 
Law 104-121, 110 Stat. 847 (1996) (CWAAA). Title II of CWAAA is the 
Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA).
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Need for, and Objectives of, the Proposed Rules

    3. In this NPRM, the Commission seeks comment on whether or not the 
benefits of its separate affiliate requirement for in-region 
interexchange service provided by incumbent independent LECs continues 
to outweigh the costs and whether or not there are alternative 
safeguards that are as effective but impose fewer regulatory costs.\2\
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    \2\ 47 U.S.C. 64.1901-03.
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Legal Basis

    4. The legal basis for any action that may be taken pursuant to the 
NPRM is contained in sections 4, 201-202, 303 and 403 of the 
Communications Act of 1934, as amended, 47 U.S.C. 154, 201-202, 303, 
and 403, and sections 1.1, 1.411, and 1.412 of the Commission's rules, 
47 CFR 1.1, 1.411, and 1.412.

Description and Estimate of the Number of Small Entities to Which the 
Proposed Rules Will Apply

    5. The RFA directs agencies to provide a description of and, where 
feasible, an estimate of the number of small entities that will be 
affected by any rules.\3\ The RFA generally defines the term ``small 
entity'' as having the same meaning as the terms ``small business,'' 
``small organization,'' and ``small governmental jurisdiction.'' \4\ 
For the purposes of this order, the RFA defines a ``small business'' to 
be the same as a ``small business concern'' under the Small Business 
Act, 15 U.S.C. 632, unless the Commission has developed one or more 
definitions that are appropriate to its activities.\5\ Under the Small 
Business Act, a ``small business concern'' is one that: (1) Is 
independently owned and operated; (2) is not dominant in its field of 
operation; and (3) meets any additional criteria established by the 
Small Business Administration (SBA).\6\ Consistent with the SBA's 
Office of Advocacy's view, the Commission has included small incumbent 
LECs in this RFA analysis. The Commission emphasizes, however, that 
this RFA action has no effect on the its analyses and determinations in 
other, non-RFA contexts.
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    \3\ 5 U.S.C. 603(b)(3), 604(a)(3).
    \4\ 5 U.S.C. 601(6).
    \5\ 5 U.S.C. 601(3) (incorporating by reference the definition 
of ``small business concern'' in 5 U.S.C. 632).
    \6\ 15 U.S.C. 632.
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    6. Local Exchange Carriers. The most reliable source of information 
regarding the number of LECs nationwide appears to be the data that the 
Commission collects annually in connection with the Telecommunications 
Relay Service (TRS).\7\ According to our most recent data, there are 
1,335 incumbent LECs.\8\ Although some of these carriers may not be 
independently owned and operated, or have more than 1,500 employees, we 
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 there are less than 1,335 
small entity incumbent LECs that may be affected by the proposals in 
the NPRM.
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    \7\ 47 CFR 64.601 et seq.; Carrier Locator: Interstate Service 
Providers, FCC Common Carrier Bureau, Industry Analysis Division 
(rel. Oct. 2000) (Carrier Locator).
    \8\ Carrier Locator at Figure 1. The total for competitive LECs 
includes competitive access providers and competitive LECs.
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Description of Projected Reporting, Recordkeeping and Other Compliance 
Requirements

    7. The Commission expects that any proposal it may adopt pursuant 
this NPRM will decrease existing reporting, recordkeeping or other 
compliance requirements.

Steps Taken To Minimize Significant Economic Impact on Small Entities, 
and Significant Alternatives Considered

    8. The overall objective of this proceeding is to reduce existing 
regulatory burdens on small carriers to the extent consistent with the 
public interest.

Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rules

    9. None.

Ordering Paragraphs

    10. Pursuant to the authority contained in sections 2, 4(i)-4(j), 
201, and 303(r) of the Communications Act of 1934, as amended, 47 
U.S.C. 152, 154(i)-4(j), 201, 303(r), this NPRM is adopted.
    11. The Commission's Consumer Information Bureau, Reference 
Information Center, shall send a copy of this NPRM, including the 
Initial Regulatory Flexibility Analysis, to the Chief Counsel for 
Advocacy of the Small Business Administration.

Federal Communications Commission.
William F. Caton,
Deputy Secretary.
[FR Doc. 01-24569 Filed 10-1-01; 8:45 am]
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