[Federal Register Volume 67, Number 57 (Monday, March 25, 2002)]
[Notices]
[Pages 13630-13632]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-7017]


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FEDERAL COMMUNICATIONS COMMISSION


Public Information Collections Approved by Office of Management 
and Budget

March 18, 2002.
    The Federal Communications Commission (FCC) has received Office of 
Management and Budget (OMB) approval for the following public 
information collections pursuant to the Paperwork Reduction Act of 
1995, Public Law 104-13. An agency may not conduct or sponsor and a 
person is not required to respond to a collection of information unless 
it displays a currently valid control number. For further information 
contact Shoko B. Hair, Federal Communications Commission, (202) 418-
1379.

Federal Communications Commission

    OMB Control No.: 3060-1005.
    Expiration Date: 07/31/2002.
    Title: Numbering Resource Optimization--Phase 3.
    Form No.: N/A.
    Respondents: Business or other for-profit; State, Local or Tribal 
Government.
    Estimated Annual Burden: 53 respondents; 63.7 hour per response 
(avg.); 3380 total annual burden hours (for all collections under this 
control number).
    Estimated Annual Reporting and Recordkeeping Cost Burden: $12,000.
    Frequency of Response: On occasion; Third Party Disclosure.
    Description: In the Communications Act of 1934, as amended by the 
Telecommunications Act of 1996, the Federal Communications Commission 
(Commission) was given ``exclusive jurisdiction over those portions of 
the North American Numbering Plan that pertain to the United States.'' 
Pursuant to that authority, the Commission conducted a rulemaking that, 
among other things, addressed regular reporting on numbering use by 
United States carriers. In the Third Report and Order and Second Order 
on Reconsideration in CC Docket No. 96-98 and CC Docket No. 99-200 
(Third Report and Order), the Commission addresses the federal cost 
recovery mechanism, including the requirement for price cap carriers to 
file tariffs reflecting recovery through an exogenous recovery 
adjustment for a two-year period beginning April 2, 2002.

A. Reporting Requirements for Federal Cost Recovery

    Section 251(e)(2) of the Act requires that ``[t]he cost of 
establishing telecommunications numbering administration arrangements 
and number portability shall be borne by all telecommunications 
carriers on a competitively neutral basis as determined by the 
Commission.'' This statutory provision applies both to the costs of 
numbering administration and to the costs of Local Number Portability 
(LNP). In the Third Report and Order, the Commission establishes a 
federal cost recovery mechanism under which price cap LECs may recover 
their extraordinary carrier-specific costs directly related to 
thousands-block number pooling through an exogenous adjustment to 
access charges. However, because thousands-block number pooling may 
actually reduce network costs, in order for carriers to qualify for the 
exogenous adjustment to access charges, the Commission requires them to 
demonstrate that pooling results in a net cost increase rather than a 
cost reduction. (No. of respondents: 18;

[[Page 13631]]

hours per response: 85 hours; total annual burden: 1530 hours).

B. Request for Safety Valve Mechanism by State Commission

    In the Third Report and Order, the Commission established a safety 
valve to ensure that carriers experiencing rapid growth in a given 
market will be able to meet customer demand. States may use the safety 
valve to grant requests from carriers that demonstrate the following: 
(1) The carrier will exhaust its numbering resources in a market or 
rate area within three months (in lieu of 6 months-to-exhaust 
requirement); and (2) projected growth is based on the carrier's actual 
growth in the market or rate area, or in the carrier's actual growth in 
a reasonably comparable market, but only if that projected growth 
varies no more than 15 percent from historical growth in the relevant 
market. States may also grant relief if a carrier demonstrates that it 
has received a customer request for numbering resources in a given rate 
center that it cannot meet with its current inventory. Carriers may 
demonstrate such a need by providing the state with documentation of 
the customer request and current proof of utilization in the rate 
center. (No. of respondents: 15; hours per response: 50 hours; total 
annual burden: 750 hours).

C. Request for Delegated Authority To Implement Service-Specific 
and Technology-Specific Area Code Overlays

    The Commission lifted the ban on service-specific and technology-
specific overlays (collectively, specialized overlays or SOs) and will 
allow state commissions seeking to implement SOs to request delegated 
authority to do so on a case-by-case basis. State commission seeking to 
implement service-specific and/or technology-specific area code 
overlays, must request delegated authority to do so. As an initial 
matter, a state commission seeking to implement a SO should discuss why 
the numbering resource optimization benefits of the proposed SO would 
be superior to implementation of an all-services overlay. State 
commissions should also specifically address the following: (1) The 
technologies or services to be included in the SO; (2) the geographic 
area to be covered; (3) whether the SO will be transitional; (4) when 
the SO will be implemented and, if a transitional SO is proposed, when 
the SO will become an all-services overlay; (5) whether the SO will 
include take-backs; (6) whether there will be 10-digit dialing in the 
SO and the underlying area code(s); (7) whether the SO and underlying 
area code(s) will be subject to rationing; and (8) whether the SO will 
cover an area in which pooling is taking place. (No. of respondents: 
20; hours per response: 55 hours; total annual burden: 1100 hours). 
Data from such reporting will be used by the Commission to determine 
whether carriers properly qualified for the exogenous adjustment to 
access charges because pooling resulted in a net cost increase. 
Obligation to respond: Required to obtain or retain benefits.

    OMB Control No.: 3060-0470.
    Expiration Date: 03/31/2005.
    Title: 47 CFR Sections 64.901-64.903, Allocation of Cost, Cost 
Allocation Manual and RAO Letters 19 and 26.
    Form No.: N/A.
    Respondents: Business or other for-profit.
    Estimated Annual Burden: 5 respondents; 400 hour per response 
(avg.); 2000 total annual burden hours (for all collections under this 
control number).
    Estimated Annual Reporting and Recordkeeping Cost Burden: $0.
    Frequency of Response: On occasion; Annually.
    Description: Section 201(b) of the Communications Act of 1934, as 
amended, requires that common carriers establish just and reasonable 
charges, practices and regulation for the services they provide; the 
Commission is responsible for regulating the telecommunications 
industry and ensuring that common carriers abide by its mandate. 
Pursuant to Section 64.901 carriers are required to separate their 
regulated costs from nonregulated cost using the attributable cost 
method of cost allocation. Carriers must follow the principles 
described in Section 64.901. Section 64.903(a) requires local exchange 
carriers with annual operating revenues equal to or above the indexed 
revenue threshold as defined in 47 CFR 32.9000 to file a cost 
allocation manual, except mid-sized incumbent local exchange carriers, 
containing the information specified in Section 64.903(a)(1)-(6). 
Section 64.903(b) requires that carriers update their cost allocation 
manuals at least annually, except that changes to the cost 
apportionment table and the description of time reporting procedures 
must be filed at the time of implementation. Proposed changes in the 
description of time reporting procedures, the statement concerning 
affiliate transactions, and the cost apportionment table must be 
accompanied by a statement quantifying the impact of each change on 
regulated operations. Changes in the description of time reporting 
procedures and the statement concerning affiliate transactions must be 
quantified in $100,000 increments at the account level. Changes in the 
cost apportionment table must be quantified in $100,000 increments at 
the cost pool level. Moreover, filing of cost allocation manuals and 
occasional updates are subject to the uniform format and standard 
procedures specified in RAO Letter 19. RAO Letter 26 provides guidance 
to carriers in revising their CAMS to reflect changes to the affiliate 
transactions rules pursuant to the Accounting Safeguards Order. In CC 
Docket No. 01-199, the Commission eliminated the annual CAM updates and 
filing of other changes for mid-sized carriers. While mid-sized 
carriers no longer will be required to annually file a CAM, they, like 
all other carriers, must be prepared to produce documentation of how 
they separate regulated from nonregulated costs to the Bureau, upon 
request. The cost allocation manual is reviewed by the Commission to 
ensure that all costs are properly classified between regulated and 
nonregulated activity. Uniformity in the CAMs will help improve the 
joint cost allocation process. In addition, this uniformity will give 
the Commission greater reliability in financial data submitted by the 
carriers through the Automated Reporting Management Information System 
(ARMIS). Obligation to respond: Mandatory.

    OMB Control No.: 3060-0384.
    Expiration Date: 03/31/2005.
    Title: Auditor's Attestation and Certification--Sections 64.904 and 
64.905.
    Form No.: N/A.
    Respondents: Business or other for-profit.
    Estimated Annual Burden: 12 respondents; 107.08 hour per response 
(avg.); 1285 total annual burden hours (for all collections under this 
control number).
    Estimated Annual Reporting and Recordkeeping Cost Burden: 
$1,200,000.
    Frequency of Response: On occasion; Annually; Biennially.
    Description: Section 201(b) of the Communications Act of 1934, as 
amended, requires that common carriers establish just and reasonable 
charges, practices, and regulations for the service they provide. The 
Commission is responsible for regulating the telecommunications 
industry and ensuring that common carriers abide by its mandate. Since 
common carriers are allowed to provide non-common carrier services, the 
Commission must establish mechanisms to control cost shifting,

[[Page 13632]]

inhibiting carriers from imposing on ratepayers for regulated 
interstate services the costs and risks of nonregulated ventures. 
Pursuant to section 64.904(a), each incumbent local exchange carrier 
required to file a cost allocation manual shall elect to either (1) 
have an attest engagement performed by an independent auditor every two 
years, covering the prior two year period, or (2) have a financial 
audit performed by an independent auditor every two years, covering the 
prior two year period. In either case, the initial engagement shall be 
performed in the calendar year after the carrier is first required to 
file a cost allocation manual. See 47 CFR 64.904 (a)-(c). In CC Docket 
00-199, the Commission eliminated the requirement that CAMs of mid-
sized carriers be subject to an attest audit every two years. Instead 
of requiring mid-sized carriers to incur the expense of a biennial 
attestation engagement, they will file a certification with the 
Commission stating that they are complying with section 64.901 of the 
Commission's rules. The certification must be signed, under oath, by an 
officer of the incumbent LEC, and filed with the Commission on an 
annual basis. Such certification of compliance represents a less costly 
means of enforcing compliance with our cost allocation rules. See 47 
CFR Section 64.905. The independent audit requirement is imposed to 
ensure that the carriers are properly implementing their cost 
allocation manual. The independent audits serve as an important aid in 
the Commission's monitoring program. Obligation to respond: Required to 
obtain or retain benefits.

    OMB Control No.: 3060-0734.
    Expiration Date: 03/31/2005.
    Title: Accounting Safeguards, CC Docket No. 96-150 (47 U.S.C. 
Sections 260, 271-276 and 47 CFR Sections 53.209, 53.211 and 53.213).
    Form No.: N/A.
    Respondents: Businesses or other for-profit.
    Estimated Annual Burden: 27 respondents; 4587.37 hours per response 
(avg.); 123,859 total annual burden hours.
    Estimated Annual Reporting and Recordkeeping Cost Burden: $632,500.
    Frequency of Response: On occasion; Biennially; Annually; 
Recordkeeping; Third Party Disclosure.
    Description: In a Report and Order issued in CC Docket No. 96-150, 
the Commission addressed the accounting safeguards necessary to satisfy 
the requirements of Sections 260 and 271 through 276 of the 
Telecommunications Act of 1996. The Report and Order prescribed the way 
incumbent local exchange carriers (ILECs), including the Bell Operating 
Companies (BOCs), must account for transactions with affiliates 
involving, and allocate costs incurred in the provision of, both 
regulated telecommunications services and nonregulated services, 
including telemessaging, interLATA telecommunications and information 
services, telecommunications equipment and CPE manufacturing and 
others. In CC Docket No. 00-199, the Commission adopted a $500,000 
threshold for transactions involving asset transfers. The $500,000 
threshold represents a de minimus exception to the affiliate 
transaction fair market valuation rules. Carriers are still required to 
follow the affiliate transactions rules in recordkeeping these 
transactions in their books of accounts, however, they will not have to 
make the comparison between fair market value and fully distributed 
costs. The required information enables the Commission to ensure that 
the subscribers to regulated telecommunications services to not bear 
the costs of these new nonregulated services and that transactions 
between affiliates and carriers will be at prices that do not 
ultimately result in unfair rates being charged to ratepayers. 
Obligation to respond: Mandatory.

    OMB Control No.: 3060-0370.
    Expiration Date: 03/31/2005.
    Title: Part 32--Uniform System of Accounts for Telecommunications 
Companies.
    Form No.: N/A.
    Respondents: Business or other for-profit.
    Estimated Annual Burden: 239 respondents; 6,123.41 hour per 
response (avg.); 1,463,496 total annual burden hours (for all 
collections under this control number).
    Estimated Annual Reporting and Recordkeeping Cost Burden: $0.
    Frequency of Response: On occasion; Recordkeeping.
    Description: Section 220 of the Communications Act of 1934, as 
amended, 47 U.S.C. 220, allows the Commission, in its discretion, to 
prescribe the forms of any and all accounts, records, and memoranda to 
be kept by carriers subject to this Act, including the accounts, 
records and memoranda of the movement of traffic, as well as of the 
receipts and expenditures of moneys. Section 219(b) of the 
Communications Act, as amended, 47 U.S.C. 219(b), authorizes the 
Commission by general or special orders to require any carrier subject 
to this Act to file monthly reports of earnings and expenses and to 
file periodical and/or special reports concerning any matters with 
respect to which the Commission authorized or required by law to act. 
The Uniform System of Accounts is a historical financial accounting 
system which reports the results of operational and financial events in 
a manner which enables both management and regulators to assess these 
results within a specified accounting period. Subject respondents are 
telecommunications companies. Entities having annual revenues from 
regulatory telecommunications operations of less than $114 million are 
designated as Class B and are subject to a less detailed accounting 
system than those designated as Class A companies. See 47 CFR part 32. 
In CC Docket No. 00-199, the Commission conducted its second 
comprehensive, biennial review of the accounting rules and the 
Automated Reporting Management Information System (ARMIS) reporting 
requirements that apply to incumbent local exchange carriers (LECs). 
The Commission made four major accounting and reporting reforms. The 
Commission substantially consolidated and streamlined Class A and 
reduced Class B accounting requirements; relaxed certain aspects of its 
affiliate transactions rules; significantly reduced the cost of 
regulatory compliance with its cost allocation rules for mid-sized 
carriers; and reduced the ARMIS reporting requirements for both large 
and mid-sized LECs. Obligation to respond: Mandatory.
    Public reporting burden for the collections of information are as 
noted above. Send comments regarding the burden estimates or any other 
aspect of the collections of information, including suggestions for 
reducing the burden to Performance Evaluation and Records Management, 
Washington, DC 20554.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 02-7017 Filed 3-22-02; 8:45 am]
BILLING CODE 6712-01-P