[Federal Register Volume 67, Number 46 (Friday, March 8, 2002)]
[Proposed Rules]
[Pages 10656-10658]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-5381]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Chapter I

[IB Docket No. 02-18, FCC 02-28]


Enforcement of Other Nations' Prohibitions Against the 
Uncompleted Call Signaling Configuration of International Call-back 
Service

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document solicits comments on the Commission's 
international comity-based call-back enforcement policy. The Commission 
initiated this proceeding because the changes in the international 
telecommunications market warrant a review of the policy. The 
Commission believes that this proceeding will promote competition in 
the international telecommunications market.

DATES: Comments are due on or before April 15, 2002, and reply comments 
are due on or before May 15, 2002.

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

FOR FURTHER INFORMATION CONTACT: Belinda Nixon, International Bureau, 
(202) 418-1460.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Proposed Rule Making (NPRM), FCC 02-28, adopted on January 30, 2002, 
and released on February 13, 2002. 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://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-02-28A1.pdf. The 
complete text of this document also may be purchased from the 
Commission's copy contractor, Qualex, Portals II, 445 12th St., SW., 
Room CY-B402, Washington, DC 20054, telephone (202) 863-2893.

Summary of Notice of Proposed Rulemaking

    1. On February 13, 2002, the Commission released a Notice of 
Proposed Rulemaking (NPRM) to review the Commission's international 
call-back enforcement policy. International call-back arrangements 
allow foreign

[[Page 10657]]

callers to take advantage of low U.S. international services rates, 
many of which are significantly lower than the rates available in their 
home countries. Specifically, the Commission's international call-back 
policy extends to the uncompleted call signaling configuration of call-
back. Uncompleted call signaling involves a foreign caller who dials 
the call-back provider's switch in the United States, waits a 
predetermined number of rings, and hangs up before the switch answers. 
The switch then automatically returns the call, and upon completion, 
provides the caller in the foreign country with a U.S. dialtone.
    2. In a 1994 order, the Commission authorized U.S. carriers to 
provide call-back service. The Commission determined that international 
call-back serves the public interest by promoting competition in 
international markets and could place significant downward pressure on 
foreign collection rates, to the ultimate benefit of U.S. ratepayers 
and industry. Additionally, the Commission concluded that the provision 
of call-back does not violate U.S. law or international law or 
regulations.
    3. On reconsideration, however, the Commission examined the 
provision of call-back in light of international comity. The Commission 
concluded in 1995 that the United States should assist in the 
enforcement of foreign laws that ban call-back. The Commission adopted 
a policy prohibiting U.S. carriers from offering international call-
back using the completed call signaling configuration to countries 
where it has been expressly prohibited. Foreign governments were 
invited to notify the Commission of the legality of call-back within 
their territory. The Commission required that any notification include 
specific documentation of a legal restriction on international call-
back using uncompleted call signaling, evidence of violations by 
particular carriers, and a description of enforcement measures 
attempted by that foreign government. The Commission maintains a public 
file containing the submitted material.
    4. Since adopting its call-back policy in 1995, the Commission has 
taken significant steps to open the U.S. international market to 
competition and to enhance consumer benefits on U.S. international 
routes. Also, the global commitment to competition policy has increased 
dramatically. The Telecommunications Resellers Association (TRA) filed 
a petition requesting that the Commission adopt an NPRM to review the 
international call-back policy. In light of these developments and 
TRA's petition, the Commission initiated this proceeding to review the 
comity-based call-back policy.
    5. Specifically, the Commission seeks comment on whether it should 
eliminate the existing comity-based prohibitions and thus, discontinue 
the policy that allows a foreign government or entity to make use of 
the enforcement mechanisms of the Commission to prohibit the U.S. 
carriers from offering one form of call-back abroad.
    6. The Commission previously declared that ``foreign governments 
bear the principal responsibility for enforcing their domestic laws, 
just as our mandate is to implement the statutory requirements of the 
Communications Act.'' In the Telecommunications Act of 1966, Congress 
directed the Commission to provide for a pro-competitive deregulatory 
national framework and mandated that, with respect to domestic markets, 
no state or local government could prohibit an entity from offering 
telecommunications services. The NPRM seeks comment on the impact of 
the 1996 Act on the Commission's comity-based call-back policy.
    7. The NPRM describes the Commission's recent initiatives to 
promote competition in the U.S. market for international services and 
enhance consumer benefits on U.S. international routes. The NPRM seeks 
comment on whether the balancing of interests involved in the decision 
to adopt the call-back policy has shifted. The NPRM concludes that the 
Commission should have a clear, consistent policy in favor of 
competition on U.S. international routes and foreign markets. This pro-
competitive policy should extend to all forms of call-back. The current 
comity-based policy may be construed as diminishing the Commission's 
support for competitive forces. The NPRM seeks comment on whether it is 
no longer appropriate for the Commission to maintain comity-based 
prohibitions and engage in enforcement actions in support of foreign 
laws that serve to restrict competition.
    8. The NPRM describes the difficulties of administering the current 
call-back policy. The Commission believes that eliminating the current 
policy would not constitute a rejection of the sovereign rights of any 
foreign government. The Commission does not propose to mandate that a 
foreign government adopts the Commission's pro-competitive policies. 
Rather, the NPRM seeks comment on whether we should eliminate the use 
of the Commission's enforcement mechanisms to restrict competition in 
the international services market.
    9. The Commission believes that its proposal is consistent with the 
ITU Kyoto Declaration regarding alternative calling mechanism. The ITU 
Kyoto Declaration directs that a member state should ``take such 
actions as may be appropriate within the constraints of its national 
law'' if a carrier subject to its jurisdiction offers call-back in 
violation of another member state's laws. The Commission emphasizes 
that it continues to believe that it is in the best interest of U.S. 
carriers to act in a manner consistent with foreign laws. Therefore, 
the Commission proposes to continue to maintain a public file to inform 
call-back providers about the legality of call-back in foreign nations. 
The NPRM seeks comment on whether, given the 1996 Telecommunications 
Act's commitment to competition and the Commission's recent policies to 
promote competitive markets abroad, elimination of the existing policy 
that allows a foreign government or entity to make use of the 
enforcement mechanisms of the Commission to prohibit U.S. carriers from 
offering call-back abroad is an appropriate response within the 
constrains of U.S. law and therefore is consistence with the ITU 
declaration.
    10. The Commission solicited comments on TRA's request for 
rulemaking, and it intends to incorporate those comments into this 
proceeding. (See Pleading Cycle Established for Comments on the 
Telecommunications Resellers Association Petition for Rulemaking 
Regarding the Commission's International Callback Policy, RM-9249, rel. 
March 27, 1998.)
    11. The Commission believes that call-back service makes 
international calling more affordable in developing markets, and the 
NPRM describes the Commission's efforts and participation to reach 
developing countries. The NPRM seeks comments on what effect changing 
the Commission's policy would have on the provision of telecom services 
in developing markets.
    12. Initial Regulatory Flexibility Certification. As required by 
the Regulatory Flexibility Act (RFA), 5 U.S.C. 6013612, as amended by 
the Small Business Regulatory Enforcement Fairness Act of 1996, Public 
Law 104-121, Title II, 110 Stat. 957, requires an initial regulatory 
flexibility analysis in notice-and-comment proceedings, unless the 
agency certifies that ``the rule will not, if promulgated, have a 
significant economic impact on a substantial number of small 
entities.'' The Commission is issuing this NPRM to seek comment on the 
possible elimination of existing comity-based

[[Page 10658]]

prohibitions and removal of the policy that allows a foreign government 
or entity to use the enforcement mechanisms of the Commission.
    The rule will not, if promulgated, have a significant economic 
impact on a substantial number of small entities.'' The Commission is 
issuing this NPRM to seek comment on the possible elimination of 
existing comity-based prohibitions and removal of the policy that 
allows a foreign government or entity to use the enforcement mechanisms 
of the Commission to prohibit U.S. carriers from offering call-back 
abroad. The proposals do not impose any additional compliance burden on 
small entities dealing with the Commission. 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. Accordingly, we certify, pursuant to section 605(b) of the RFA, 
that the proposals, if promulgated, would not have a significant 
economic impact on a substantial number of small business entities, as 
defined by the RFA. The Commission's Consumer Information Bureau, 
Reference Information Center, shall send a copy of this Notice, 
including the Initial Regulatory Flexibility Certification, to the 
Chief Counsel for Advocacy of the Small Business Administration in 
accordance with section 605(b) of the RFA. This initial certification 
will also be published in the Federal Register.

Ordering Clauses

    13. Pursuant to sections 1, 4 (j)(-j), 201(b), 214, 303(r), and 403 
of the Communications Act of 1934, as amended, 47 U.S.C. 151, 
154(i)(j), 201(b), 214, 303(r), and 403, this Notice of Proposed 
Rulemaking Is hereby adopted.
    14. The Commission's Consumer Information Bureau, Reference 
Information Center, shall send a copy of this Notice of Proposed 
Rulemaking, including the regulatory flexibility certification, to the 
Chief Counsel for Advocacy of the Small Business Administration.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 02-5381 Filed 3-7-02; 8:45 am]
BILLING CODE 6712-01-P