[Federal Register Volume 68, Number 26 (Friday, February 7, 2003)]
[Notices]
[Page 6454]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-3070]


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FEDERAL COMMUNICATIONS COMMISSION

[WC Docket No. 02-202, FCC 02-337]


Interstate Access Tariffs--Protections Against Risk of 
Uncollectibles

AGENCY: Federal Communications Commission.

ACTION: Policy statement.

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SUMMARY: This document makes recommendations to incumbent local 
exchange carriers (LECs) seeking to revise the deposit provisions of 
their interstate access tariffs to increase protection from the risk of 
uncollectibles. The document recommends that incumbent LECs consider 
whether the following possible tariff provisions might address the risk 
of uncollectibles, making additional deposits unnecessary: Revise 
interstate access tariffs to define the ``proven history of late 
payment'' trigger for requiring a deposit to include a failure to pay 
the undisputed amount of a monthly bill in any two of the most recent 
twelve months, provided that both the past due period and the amount of 
the delinquent payment are more than de minimis; reduce the notice 
period for refusal or discontinuance of service from 30 days to some 
shorter period for customers that receive bills quickly enough to allow 
review and dispute; accelerate billing cycles from 30 days to some 
shorter period to reduce exposure to pre-bankruptcy petition debt and 
other possible nonpayment; and bill in advance for usage-based services 
currently billed in arrears, based on average usage over a sample 
period, perhaps phasing in the first advance bill over a period of 
several months. The policy statement does not rule on the lawfulness of 
various tariffs proposed by incumbent local exchange carriers to 
increase protections against the risk of uncollectibles and being 
investigated by the Wireline Competition Bureau of the Federal 
Communications Commission.

FOR FURTHER INFORMATION CONTACT: Julie Saulnier, Wireline Competition 
Bureau, Pricing Policy Division, (202) 418-1530.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Policy 
Statement in WC Docket No. 02-202 released on December 23, 2002. The 
full text of this document is available on the Commission's website 
Electronic Comment Filing System and for public inspection during 
regular business hours in the FCC Reference Center, Room CY-A257, 445 
Twelfth Street, SW., Washington, DC 20554.
    Background: On July 24, 2002, Verizon filed a Petition for 
Emergency Declaratory and Other Relief in response to the WorldCom 
bankruptcy. The Wireline Competition Bureau of the Federal 
Communications Commission sought comment on Verizon's petition. Public 
Notice, WC Docket No. 02-202, DA 02-1859 (rel. July 31, 2002). The 
petition asks the Commission, among other things, to permit carriers 
expeditiously to revise their tariffs to require deposits, advance 
payments, and shorter notice periods where necessary to provide 
adequate assurance of payment by their customers. The petition also 
asks the Commission to take certain actions in bankruptcy proceedings 
and regarding customer transfers that are not addressed in this item. 
Concurrently with its petition, Verizon filed revisions to its 
interstate access tariffs to broaden its powers to seek deposits and 
advance payments, and to shorten the notice period before refusing new 
orders, stopping existing orders, and discontinuing service to 
customers at risk of nonpayment. Similar tariff revisions have been 
filed by other incumbent LECs. While current tariffs allow incumbent 
LECs to seek deposits from customers with a history of late payment or 
no established credit, the revised tariffs would allow incumbent LECs 
to seek deposits from such customers, as well as any customer that 
suffers from impaired credit worthiness, defined in a variety of ways. 
After balancing the interest of incumbent LECs in protecting themselves 
from uncollectibles against the potential burden on their customers of 
additional deposits in a period of tight credit, the document 
recommends that incumbent LECs consider whether possible tariff 
provisions such as advance or accelerated billing, or shortened notice 
periods tied to timely arrival of accurate interstate access bills, 
might address the risk of nonpayment, making additional deposits 
unnecessary.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 03-3070 Filed 2-6-03; 8:45 am]
BILLING CODE 6712-01-P