[Federal Register Volume 67, Number 17 (Friday, January 25, 2002)]
[Rules and Regulations]
[Pages 3621-3622]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-1810]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 64

[CC Docket No. 96-128; FCC 01-344]


The Pay Telephone Reclassification and Compensation Provisions of 
the Telecommunications Act of 1996

AGENCY: Federal Communications Commission.

ACTION: Clarification.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission) addresses the rules regarding per-call compensation for 
payphone calls to ensure that payphone service providers (PSPs) are 
fairly compensated for all completed, coinless calls made from 
payphones. The Commission addresses the key issues raised in the 
petitions for declaratory ruling, reconsideration and/or clarification, 
and clarifies, on its own motion, certain aspects of the per-call 
compensation rules.

DATES: Effective February 25, 2002.

FOR FURTHER INFORMATION CONTACT: Tania Cho, (202) 418-2320; fax (202)

[[Page 3622]]

418-2345; TTY (202) 418-0484; email at [email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Third 
Order on Reconsideration and Order on Clarification in CC Docket No. 
96-128, FCC 01-344, adopted and released on November 21, 2001. The full 
text of the item is available for inspection and copying during the 
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, Qualex 
International, 445 12th Street, SW., Suite CY-B402, Washington, DC 
20554, phone (202) 863-2893. This Order contains no new or modified 
information collection subject to the Paperwork Reduction Act of 1995, 
Public Law 104-13.

Synopsis of the Third Order on Reconsideration and Order on 
Clarification

    To implement Section 276 of the Telecommunications Act of 1996, the 
Commission has adopted several rules that define the relationship 
between PSPs and carriers in the call path in order to ensure that PSPs 
are adequately compensated for calls placed from payphones. In the 
First Payphone Order, 61 FR 52309, October 7, 1996, the Commission 
concluded that the interexchange carrier (IXC), as the primary 
beneficiary of payphone calls, should compensate the PSP. The 
Commission also recognized that a reseller lacking its own facilities 
does not have the ability to track calls, and that the facilities-based 
carrier should therefore pay compensation to the PSP. A requirement to 
track, or arrange for tracking of, compensable calls was also 
established for the underlying IXC, and the IXC was permitted to 
recover the cost of such tracking from the reseller. In the Payphone 
Order on Reconsideration, 61 FR 65341, December 12, 1996, the 
Commission modified its rules to provide that switch-based resellers 
(SBRs) are responsible for paying compensation directly to PSPs. In the 
Coding Digit Waiver Order, 63 FR 26497, May 13, 1998, the Common 
Carrier Bureau responded to PSP complaints that IXCs refused to 
identify SBRs by clarifying that when SBRs identified themselves to the 
first facilities-based IXC as responsible for paying compensation, the 
IXC was obligated to provide this information to the PSP.
    On April 5, 2001, the Commission released the Second Order on 
Reconsideration, 66 FR 21105, April 27, 2001, which modified the 
payphone compensation rules. The modified rules provided that the first 
facilities-based IXC to which a LEC routes a coinless payphone call 
must (1) Compensate the PSP for the completed call; (2) track or 
arrange for tracking of all compensable calls; and (3) send to the PSP 
call completion information to enable the PSP to verify the accuracy of 
compensation it receives for coinless, compensable calls and/or to bill 
the underlying facilities-based carrier. The first IXC may then seek 
reimbursement from the switchless or switch-based reseller ultimately 
responsible for the compensation.
    In this Third Order on Reconsideration and Order on Clarification, 
we decline to modify the rules as established in the Second Order on 
Reconsideration. We also reaffirm that, for purposes of payphone 
compensation, only calls that are answered by the called party are 
``completed'' and thus compensable. Further, we clarify that the 
Commission supports the preservation and establishment of direct 
relationships and agreements between PSPs and SBRs for tracking and 
payment of payphone compensation, and that the liability of the first 
facilities-based IXC is limited to the extent that SBRs enter into such 
direct relationships. We also reiterate that the Commission did not, by 
revising the payphone compensation rules, intend to nullify any current 
or future contractual arrangements. Finally, we clarify that carriers 
are only required to report to PSPs calls that are completed, and thus 
compensable.

Ordering Clause

    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, the Bulletins Petition for Clarification is 
denied to the extent described herein; WorldCom, Inc. Petition for 
Declaratory Ruling and Petition for Reconsideration is granted in part 
and denied in part to the extent described herein; AT&T Petition for 
Clarification and/or Reconsideration is denied to the extent described 
herein; and Global Crossing Telecommunications, Inc. Petition for 
Reconsideration and Clarification is denied, to the extent described 
herein.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 02-1810 Filed 1-24-02; 8:45 am]
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