[Federal Register Volume 67, Number 63 (Tuesday, April 2, 2002)]
[Rules and Regulations]
[Pages 15490-15493]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-7997]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 54
[CC Docket Nos. 00-256 and 96-45; FCC 02-89]
Multi-Association Group (MAG) Plan for Regulation of Non-Price
Cap Incumbent Local Exchange Carriers and Interexchange Carriers;
Federal-State Joint Board on Universal Service
AGENCY: Federal Communications Commission.
ACTION: Final rule; partial waiver and amendment.
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SUMMARY: In this document, the Commission modifies on its own motion
the data collection and filing procedures for implementation of the
Interstate Common Line Support (ICLS) mechanism for incumbent local
exchange carriers in order to ensure timely implementation of the ICLS
mechanism on July 1, 2002 as adopted in the Multi-Association Group
(MAG) MAG Order and to reduce administrative burdens on rate-of-return
carriers.
DATES: Effective April 2, 2002.
FOR FURTHER INFORMATION CONTACT: William Scher, Attorney, Common
Carrier Bureau, Accounting Policy Division, (202) 418-7400.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's First
Order on Reconsideration in CC Docket No. 00-256 and Fourth Order on
Reconsideration in CC Docket No. 96-45 released on March 22, 2002. The
full text of this document is available for public inspection during
regular business hours in the FCC Reference Center, Room CY-A257, 445
Twelfth Street, SW., Washington, DC 20554 and at http://www.fcc.gov/
wcb/universal__service/welcome.html.
I. Introduction
1. In this Order, we modify on our own motion the data collection
and filing procedures for implementation of the Interstate Common Line
Support (ICLS) mechanism, in order to ensure timely implementation of
the ICLS mechanism on July 1, 2002 as adopted in the MAG Order, 66 FR
59719, November 30, 2001. First, we extend until April 18, 2002 the
original March 31, 2002, deadline set forth in Sec. 54.903(a) for the
submission of projected data and line counts to the Universal Service
Administrative Company (USAC). Second, we waive the requirement under
Sec. 54.903(a) that each carrier file its data with USAC in order to
permit the National Exchange Carrier Bureau Association (NECA) to file
the data for each member of the common line pool for the purpose of
this initial ICLS filing deadline. Finally, we specify the data to be
submitted for this initial ICLS filing under Sec. 54.903(a). We
conclude that these actions are appropriate to ensure timely
implementation of the ICLS mechanism, accuracy of support, and
compliance with the new filing requirements, and shall apply only to
the initial ICLS filing deadline.
II. Discussion
2. In this Order we modify, on our own motion, the initial ICLS
data collection and filing procedures to ensure timely implementation
of the ICLS mechanism on July 1, 2002. We
[[Page 15491]]
recognize that implementation of the ICLS mechanism is a critical
element of the Commission's achievement of its access reform and
universal service goals. Since adoption of the MAG Order, rural
carriers and other interested parties have indicated that additional
time would significantly improve their ability to file complete and
accurate data with USAC. We have been working with USAC, rural
carriers, and other interested parties to ensure that carriers have
sufficient time to prepare and submit the data necessary to implement
the ICLS mechanism. We conclude that the actions we take in this Order
are appropriate to ensure timely ICLS implementation, to permit the
submission of accurate data, and to minimize the associated
administrative burdens on rate-of-return carriers.
3. We emphasize that our actions in this Order apply only to the
initial implementation of ICLS and the first filing currently scheduled
for March 31, 2002, and are not intended to restrict USAC's ability in
the future to determine the data necessary to fulfill its obligations
as Administrator of the ICLS mechanism, including its duty to prevent
waste, fraud, and abuse. We expect that Commission staff and USAC will
work with affected rate-of-return carriers and other interested parties
to develop the appropriate filing requirements for future data
submissions consistent with the Commission's rules. Although the
Commission directed USAC to determine the data required for the ICLS
mechanism, the Commission retains oversight authority over the ICLS
program. To that end, we direct the Common Carrier Bureau to take steps
reasonably necessary to implement the ICLS mechanism, consistent with
the Commission's rules, while minimizing the administrative burdens on
affected carriers. We are confident that USAC, under the Bureau's
oversight, will develop procedures and filing requirements that fulfill
the Commission's intent to limit as much as possible the administrative
burdens associated with the ICLS mechanism, while promoting accurate
and efficient distribution of support.
4. Extension of March 31 Filing Deadline. We conclude that it is
appropriate to extend until April 18, 2002, the initial March 31, 2002,
filing deadline in Sec. 54.903(a) of the Commission's rules. We
established the March 31 ICLS filing deadline to provide rate-of-return
carriers with sufficient time to prepare and submit the necessary data,
and to provide USAC a reasonable opportunity to implement the mechanism
on July 1, 2002 and perform its obligations as Administrator. Since the
adoption of the MAG Order, affected carriers have indicated that it
will be difficult to provide complete and accurate data by the initial
March 31, 2002, deadline. Implementation of the ICLS mechanism and
calculation of ICLS support depend on the submission of complete and
accurate data. We find that it is appropriate to extend the deadline
for the first-time filing of this data until April 18, 2002. This
extension will provide sufficient time for the submission of complete
and accurate data, while allowing USAC to implement the ICLS mechanism
and calculate support beginning July 1, 2002.
5. NECA to Submit Data on Behalf Pooling Carriers. In order to
further ensure the timely submission of complete and accurate data for
the initial implementation of the ICLS support mechanism beginning July
1, 2002, we waive the requirement under Sec. 54.903(a) that each
carrier file its data with USAC. Specifically, we permit NECA to file
the data set forth below in this Order for each member of its common
line pool for the purposes of this initial ICLS filing deadline.
Interested parties have indicated that initial implementation of the
ICLS mechanism, including the first-time filing of the necessary data,
may be difficult for the approximately 1300 rate-of-return carriers
eligible for ICLS. We believe that, by directing NECA to complete the
filing on behalf of each member of its common line pool, we will
mitigate the first-time filing obligations on the vast majority of the
1300 carriers eligible for ICLS. As members of the NECA common line
pool, these carriers already provide cost, revenue, and line count data
to NECA to permit NECA to prepare projected common line cost and
revenue data for tariff filings on behalf of its members. NECA should
possess all of the projected data and line counts set forth in detail
below and thus should be able to file the data on its members' behalf
by April 18, 2002, in accordance with the instructions set forth below.
6. Based on input from interested parties, we do not expect pooling
carriers to object to NECA filing on their behalf. If, however, a
carrier prefers to file its own data or designate an agent other than
NECA to file its data, it may do so at its option. If a pooling carrier
files data separately from NECA, USAC will disregard the data filed by
NECA on the carrier's behalf. A carrier that does not participate in
NECA's common line pool must file its own data or designate an agent to
do so, as discussed below.
7. We also conclude that NECA should make certain certifications
with respect to the data submission. First, it must certify that the
projected cost and revenue data are accurate to the best of its
knowledge and ability. Second, it must certify that the line count data
are accurate to the best of its knowledge and represents actual data
supplied to NECA by the carrier. Third, it must certify that it has
notified each carrier of the filing and will provide each carrier with
a copy of the part of the filing relevant to the individual carrier
within 15 days. We believe that such certifications are necessary for
the purposes of this initial filing deadline to ensure the accuracy and
reliability of the data used to calculate ICLS and that carriers are
aware of the data that has been filed on their behalf. NECA may file a
single statement making these certifications for all of the data it
files and need not separately certify for each carrier, as long as the
certifications are truthful for each carrier's data.
8. Filings By Parties Other Than NECA. To ensure the accuracy of
the data for purposes of this initial filing deadline, we require
certifications from non-pooling carriers or pooling carriers that
choose to file their data separately from NECA. Specifically, the
carrier or its designated agent will certify that (1) its projections
are accurate to the best of its knowledge and ability, and (2) its line
count data is accurate. If the filing is made by a carrier's designated
agent, it must be accompanied by an authorization by the carrier. These
certifications are necessary to ensure the accuracy and reliability of
the data used to calculate support.
9. Projected Data Required. In order to ensure that NECA and
affected carriers have sufficient guidance as to the data required to
ensure timely implementation of the ICLS mechanism, we specify below
the data that must be included in the initial filing under
Sec. 54.903(a) of the Commission's rules. We find that, for the initial
April 18, 2002, data submission, the only projected data required are
the data specifically identified in Sec. 54.901(a) of the Commission's
rules. The initial filing shall therefore include the following data
for each eligible rate-of-return carrier: (1) Projected common line
revenue requirement; (2) projected SLC revenues; (3) projected revenue
from its transitional CCL charge; (4) projected special access
surcharges; (5) projected line port costs in excess of basic analog
service; and (6) projected LTS. The Commission's rules implementing the
MAG Order recognize that these data points are necessary for the
calculation of ICLS. We are also
[[Page 15492]]
confident, based on consultation with interested parties, that this
data can be filed by the April 18, 2002 filing deadline. We therefore
do not anticipate NECA or any individual carrier will be unable to file
this data.
10. To ensure the timely implementation of the ICLS mechanism, we
find that it is sufficient for purposes of this initial filing to
collect only the data points specifically identified in Sec. 54.901(a).
We note that, under the rules adopted in the MAG Order, all support
distributed based on the data submitted for this initial ICLS filing
will be subject to true-up based on a subsequent actual data. We
recognize that, for future projected data submissions, USAC may
determine that the collection of additional projected data may be
necessary for verification and validation purposes. We expect that
Commission staff and USAC will work with affected rate-of-return
carriers and other interested parties to ensure that future projected
data submissions result in the accurate and efficient calculation and
verification of support, while imposing minimal administrative burdens
on carriers.
11. Line Count Data Required. We clarify that the line count data
that must be submitted on April 18, 2002, pursuant to Sec. 54.903(a),
shall include line count data for each study area by customer class
(single-line business/residential and multi-line business), but need
not include line counts by disaggregation zone. Under the Commission's
rules, carriers need not elect a disaggregation path until May 15,
2002. Thus, few carriers will file disaggregated line count data on
April 18, 2002. In addition, carriers must file disaggregated line
count data on the July 31 annual line count filing. Under these
circumstances, we conclude that it is appropriate for the initial April
18, 2002, filing to require line count data by study area rather than
by disaggregation zone. We recognize that, in those study areas that
have established disaggregation zones by April 18, 2002, portable
support initially will be distributed to CETCs on a study-area basis,
rather than by disaggregation zone. Because we anticipate that few
study areas will have established disaggregation zones by April 18,
2002, we find that it is appropriate to simplify the initial line count
filing as described above.
12. Filing Specifications. We direct NECA and carriers filing
individually to submit the projected cost and revenue data and line
count data with USAC under a single cover letter. The filing should be
addressed to USAC at the following address:
------------------------------------------------------------------------
Overnight or Expedited Mail/
U.S. Mail Courier Services
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USAC...................................... USAC.
P.O. Box 11993............................ One South Market Square.
Harrisburg, PA 17108...................... Harrisburg, PA 17101 (717)
233-5731.
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The filing should clearly identify the carrier's name and study
area code, and provide specific contact information for an individual,
including that contact's name, telephone number, and e-mail address, as
well as the address of the carrier. The data may be presented in a
letter or in an appropriate electronic format (i.e., an Access or Excel
spreadsheet on CD). The filing must clearly indicate that the projected
data is for the 2002-03 ICLS year, and the line count data represents
line counts as of September 30, 2001. The cover letter may be used to
make the necessary certifications for both the projected data and the
line count data. Confidential treatment of the filed data may be
requested in the cover letter, pursuant to Sec. 0.459 of the
Commission's rules.
13. USAC shall post to its website, www.universalservice.org, a
sample letter and spreadsheets that the filing parties are encouraged
follow. We anticipate that USAC will conduct additional outreach to
ensure that non-pooling carriers are able to meet these requirements.
We expect also that NECA will consult with USAC regarding the best
manner to provide its filing to USAC. Questions regarding these filing
procedures may be directed to USAC by telephone at (512) 835-1585, by
fax at (512) 835-1586, or by e-mail at
[email protected].
III. Procedural Issues
A. Supplemental Final Regulatory Flexibility Certification
14. The Regulatory Flexibility Act of 1980, as amended (RFA)
requires that a regulatory flexibility analysis be prepared for
rulemaking proceedings, unless the agency certifies that ``the rule
will not have a significant economic impact on a substantial number of
small entities.'' The RFA generally defines ``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. A small business
concern is one which: (1) Is independently owned and operated; (2) is
not dominant in its field of operation; and (3) satisfies any
additional criteria established by the Small Business Administration
(SBA).
15. On October 11, 2001, the Commission adopted MAG Order, which
has as its the principle goal the gradual elimination of implicit
support in the access rate structure of non-price cap carriers and
replacement with an explicit support mechanism, ICLS. In this Order on
Reconsideration, we adopt modifications to our rules concerning the
initial filing of data for the ICLS mechanism. First, we extend the
deadline for completing the initial filing from March 31, 2002, to
April 18, 2002. Second, we order NECA to complete the initial filing on
behalf of members of its common line pool based on data already in its
possession. This relieves individual carriers that participate in the
NECA common line pool--the vast majority of rate-of-return carriers--
from the burden of completing the filings on their own. Members of the
NECA common line pool need not rely on NECA's filing if they would
prefer to make their own filing as our rules currently require. A
carriers that does not participate in the NECA common line pool must
file its own data or have another designated agent file its data, as
currently required in our rules. These modifications are expected to
reduce the administrative burdens associated with making the initial
ICLS filings. The modifications apply only to the initial filings under
the ICLS mechanism, and are not permanent changes to the Commission's
rules. Finally, we note that NECA, which itself is a small entity due
to its non-profit status, appears to be the only entity with any
additional compliance burden as a result of our actions. Because the
modifications reduce, rather than increase, administrative costs and
are of a one-time nature, and because any additional compliance burden
falls only on NECA, we certify that the requirements of this Order on
Reconsideration will not have a significant economic impact on a
substantial number of small entities.
16. The Commission will send a copy of this Order on
Reconsideration, including a copy of this supplemental certification,
in a report to Congress pursuant to the Congressional Review Act. In
addition, this Order on Reconsideration and certification will be sent
to the Chief Counsel for Advocacy of the Small Business Administration,
and will be published in the Federal Register.
B. Paperwork Reduction Act Analysis
17. The decision herein has been analyzed with respect to the
Paperwork Reduction Act of 1995, Public Law 104-13, and found to impose
new or
[[Page 15493]]
modified reporting and/or recordkeeping requirements or burdens on the
public. Implementation of these new or modified reporting and/or
recordkeeping requirements will be subject to approval by the Office of
Management and Budget.
IV. Ordering Clauses
18. It is ordered, pursuant to sections 1-4, 10, 201-202, and 254
of the Communications Act of 1934, as amended, and Secs. 1.3 and 1.103
of the Commission's rules, this Order on Reconsideration is adopted.
19. The Accounting Policy Division of the Common Carrier Bureau
shall send a copy of the Order, upon release, to the National Exchange
Carrier Association, Inc., CenturyTel-Ohio, Ogden Telephone--New York,
Warwick Valley Telephone Company, Alltel Georgia Comm, Corp., Georgia
Alltel Telecom, Inc., Great Plains Communications, and Interstate
Telecommunications Cooperative, Inc.
20. The Commission's Consumer Information Bureau, Reference
Information Center, shall send a copy of this Order on Reconsideration,
including the Supplemental Final Regulatory Flexibility Certification,
to the Chief Counsel for Advocacy of the Small Business Administration.
Federal Communications Commission.
William F. Caton,
Acting Secretary.
For the reasons set forth in the preamble, 47 CFR part 54 is
amended as follows:
1. The authority citation for part 54 continues to read as follows:
Authority: 47 U.S.C. 1, 4(l), 201, 205, 214, and 254 unless
otherwise noted.
2. Section 54.903 is amended in paragraphs (a)(1) and (a)(3) by
removing the date ``March 31, 2002'' and adding in its place ``March
18, 2002.''
[FR Doc. 02-7997 Filed 4-1-02; 8:45 am]
BILLING CODE 6712-01-P