[Federal Register Volume 66, Number 246 (Friday, December 21, 2001)]
[Notices]
[Pages 65963-65964]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-31459]


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FEDERAL COMMUNICATIONS COMMISSION

[CC Docket Nos. 94-1, 96-45, 96-262, and 99-249; DA 01-2817]


Common Carrier Bureau Seeks Comment on Remand of $650 Million 
Support Amount Under Interstate Access Support Mechanism for Price Cap 
Carriers

AGENCY: Federal Communications Commission.

ACTION: Notice; solicitation of comments.

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SUMMARY: In a Public Notice in this proceeding released on December 4, 
2001, the Common Carrier Bureau (Bureau) sought further comment on the 
$650 million support amount available under the interstate access 
support mechanism. Specifically, the Bureau sought comment on the uses 
of a cost model, including the Commission's forward-looking high-cost 
model or the study submitted by AT&T in this proceeding, to identify 
the appropriate amount available under the interstate access support 
mechanism. The Bureau also sought comment on the use of other studies 
or analyses to determine whether $650 million is the support amount 
that best serves the Commission's universal service goals.

DATES: Comments are due on or before January 22, 2002. Reply comments 
are due on or before February 4, 2002.

ADDRESSES: See Supplementary Information section for where and how to 
file comments.

FOR FURTHER INFORMATION CONTACT: Ted Burmeister, Attorney, or Sheryl 
Todd, Management Analyst, Common Carrier Bureau, Accounting Policy 
Division, (202) 418-7400 TTY: (202) 418-0484.

SUPPLEMENTARY INFORMATION: On May 31, 2000, the Federal Communications 
Commission adopted the CALLS Order, 65 FR 57739, September 26, 2000, 
which reformed the interstate access rate structure for price cap 
carriers by removing implicit universal service support and replacing 
it with explicit support. To accomplish this, the Commission created a 
new universal service support mechanism called the interstate access 
support mechanism. The Commission directed that $650 million annually 
be made available under the interstate access support mechanism. The 
Commission concluded that this amount would provide sufficient, but not 
excessive, support. In adopting this amount, the Commission noted that 
$650 million fell within a range of proposed amounts submitted in the 
proceeding, and reflected agreement among disparate interests, 
including interexchange carriers and price cap carriers.
    On September 10, 2001, the United States Court of Appeals for the 
Fifth Circuit remanded the CALLS Order to the Commission for further 
analysis and explanation regarding the establishment of the $650 
million amount. The court concluded that the Commission provided 
inadequate justification for the support amount. Specifically, the 
court concluded that the Commission ``failed to exercise sufficiently 
independent judgment in establishing the $650 million amount,'' by 
granting too much deference to the fact that many parties agreed that 
$650 million was an adequate support amount. The court recognized that 
identifying a specific amount of explicit support to replace implicit 
support is ``an imprecise exercise,'' but held that the Commission must 
better explain how it arrived at the $650 million amount. In 
particular, the court noted that the Commission should better address 
the relevance of studies filed in the proceeding to the establishment 
of the support amount, including the AT&T study using the synthesis 
model, the ALTS and Time Warner studies, and other studies. The court 
therefore directed that the Commission provide further analysis and 
explanation justifying $650 million as an appropriate amount of support 
available under the interstate access universal service support 
mechanism.
    Accordingly, we seek further comment on the $650 million support 
amount available under the interstate access support mechanism. 
Specifically, we seek comment on the uses of a cost model, including 
the Commission's forward-looking high-cost model or the study submitted 
by AT&T in this proceeding, to identify the appropriate amount 
available under the interstate access support mechanism. We also seek 
comment on the use of other studies or analyses to determine whether 
$650 million is the support amount that best serves the Commission's 
universal service goals.
    Pursuant to Secs. 1.415 and 1.419 of the Commission's rules, 
interested parties may file comments on or before January 22, 2002. 
Reply comments are due on or before February 4, 2002. Comments may be 
filed using the Commission's Electronic Comment Filing System (ECFS) or 
by filing paper copies. 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. 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. 
Parties who choose to file by paper must file an original and four 
copies of each filing. All filings must be sent to the Commission's 
Secretary, Magalie Roman Salas, Office of the Secretary, Federal 
Communications Commission, 445 12th Street, S.W., Washington, DC 20554.
    Parties also should send three paper copies of their filing to 
Sheryl Todd, Accounting Policy Division, Common Carrier Bureau, Federal 
Communications Commission, 445 12th Street, S.W., Room 5-A422, 
Washington, DC 20554. In addition, commenters must send diskette copies 
to the Commission's duplicating contractor, Qualex International, 
Portals II, 445 12th St., SW, Room CY-B402, Washington, DC 20554.
    Pursuant to Sec. 1.1206 of the Commission's rules, this proceeding 
will continue to be conducted in a permit-but-disclose proceeding in

[[Page 65964]]

which ex parte communications are permitted subject to disclosure.

    Dated: December 14, 2001.
Katherine L. Schroder,
Division Chief, Accounting Policy Division.
[FR Doc. 01-31459 Filed 12-20-01; 8:45 am]
BILLING CODE 6712-01-P