[Federal Register Volume 69, Number 101 (Tuesday, May 25, 2004)]
[Proposed Rules]
[Pages 29676-29681]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-10837]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1, 43 and 63

[IB Docket No. 04-112; FCC No. 04-70]


Reporting Requirements for U.S. Providers of International 
Telecommunications Services

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document is a summary of the Notice of Proposed 
Rulemaking adopted by the Commission in this proceeding. The Commission 
seeks comment on the continued need for traffic and revenue reports and 
facilities-use reports and on proposals that simplify and the reports 
that carriers must file. The Commission also seeks comment of the 
elimination of requirement that international telegraph carriers file 
their contracts with their foreign correspondents.

DATES: Comments are due to be filed by July 26, 2004, and reply 
comments are due to be filed by August 23, 2004. OMB, the general 
public, and other Federal agencies are invited to comment on the 
information collection requirements on or before July 26, 2004.

FOR FURTHER INFORMATION CONTACT: David Krech or John Copes, Policy 
Division, International Bureau, (202) 418-1460. For information 
concerning the information collection(s) contained in this document, 
contact Judith B. Herman at 202-418-0214, or via the Internet at 
[email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Proposed Rulemaking in IB Docket No. 04-112, FCC 04-70, adopted 
March 24, 2004. The full text of this Commission decision is available 
for inspection and copying during normal business hours in the FCC 
Reference Center (Room CY-A257), 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-04-70.pdf. The 
complete text may also be purchased from the Commission's copy 
contractor, Qualex International, in person at 445 12th Street, SW., 
Room CY-B402, Washington, DC. 20554, via telephone at (202) 863-2893, 
via facsimile at (202) 863-2898, or via e-mail at [email protected]. 
This Notice of Proposed Rulemaking (NPRM) contains proposed new or 
modified information collections subject to the Paperwork Reduction Act 
of 1995 (PRA), Public Law 104-3. It will be submitted to the Office of 
Management and Budget (OMB) for review under section 3507(d) of the 
PRA. OMB, the general public, and other Federal agencies are invited to 
comment on the modified information collections contained in this 
proceeding.

Summary of Notice of Proposed Rulemaking

    On March 24, 2004, the Commission adopted a Notice of Proposed 
Rulemaking in the Matter of Reporting Requirements for U.S. Providers 
of International Telecommunications Services; Amendment of Part 43 of 
the Commission's Rule (NPRM). In the NPRM, the Commission undertakes a 
comprehensive review of the reporting requirements to which carriers 
providing U.S. international services are subject under part 43 of the 
rules. The NPRM seeks comment on changes to simplify the reporting 
requirements and to ensure the usefulness of the data collected by the 
Commission.
    The NPRM seeks comment on whether to retain the annual traffic and 
revenue reporting requirements. Currently, Sec.  43.61(a) requires 
international telecommunications carriers to file annual reports 
setting forth their traffic and revenues for each international service 
they provide. Section 43.82 of the Commission's rules requires 
facilities-based U.S. international telecommunications carriers to file 
annual circuit-status reports that detail, as of December 31st each 
year, the number of circuits they own or lease to each country they 
serve and the services for which they use each such circuit. The NPRM 
seeks comment on whether to retain the Sec.  43.53 telegraph carrier 
report.
    The NPRM tentatively concludes that the Sec.  43.61 traffic and 
revenue reports and the Sec.  43.82 circuit-status reports continue to 
be needed and proposes to retain them. The NPRM, however, proposes 
certain simplifications to lessen the burden on the carries of filing 
the reports and, in a few cases, proposes to expand the information 
carriers are required to file to make the reports more useful under 
current conditions in the international telecommunications market.
    The NPRM proposes a number of ways to simplify the Sec.  43.61 
traffic and revenue reports and Sec.  43.82 circuit-status report. For 
example, the NPRM proposes to eliminate the current requirement in the 
annual traffic and revenue report that carriers file the number of 
messages they carry to and from the foreign countries they serve, 
requiring only that they continue to report the number of minutes they 
handle and the amount of revenues associated with those minutes. 
Second, the NPRM proposes to eliminate the current requirement that 
carriers file traffic and revenue information or circuit-status 
information for services they offer between the U.S. Mainland and 
offshore U.S. points such as Hawaii and Puerto Rico or traffic carried 
between two such offshore U.S. points. Third, the NPRM proposes to 
establish a $5 million annual revenue threshold for reporting U.S. 
international resale telephone services. That is, U.S. carriers that 
provide international telephone service on a resale basis do not have 
to file an annual traffic and revenue report unless their annual resale 
revenues exceed $5 million. Similarly, the NPRM proposes to implement a 
$5 million annual revenue threshold also for ``miscellaneous'' 
international services, i.e., services other than international 
telephone service. The NPRM includes a staff proposal that recommends a 
number of ways to simplify the information that international carriers 
must report on covered services. The staff proposal is available for 
download over the Internet at http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-70A1.pdf.
    The NPRM also seeks comment on the need to retain the Sec.  
43.61(b) and Sec.  43.61(c) quarterly traffic and revenue reports. If 
the Commission ultimately

[[Page 29677]]

concludes that it should retain the quarterly reports, the 
simplifications proposed for the annual traffic and revenue reports 
would apply to the retained quarterly reports as well.
    The NPRM proposes to require all carriers that own international 
transmission facilities to file the annual circuit-status reports. At 
present, only common-carrier service providers are required to file 
circuit-status information. The NPRM proposes to require owners of non-
common-carrier international transmission facilities also to file. 
Since the circuit-status report was adopted, the mix of common-carrier 
and non-common-carrier international transmission facilities has 
shifted so that currently common-carrier facilities represent less than 
10 percent of all international transmission facilities. To keep the 
Commission informed about the availability and usage of international 
transmission facilities, it will be necessary for it to have 
information on both common-carrier and non-common-carrier facilities.
    The NPRM also proposes to eliminate the Sec.  43.53 telegraph 
carriers reporting requirement. The NPRM notes that international 
telegraph services have sharply declined in importance and that no 
useful purpose would be served by requiring such carriers to file their 
overseas contracts.

Procedural Matters

Initial Paperwork Reduction Act Analysis

    This NPRM contained proposed new information collections. The 
Commission, as part of its continuing effort to reduce paperwork 
burdens, invites the general public and the Office of Management and 
Budget (OMB) to comment on the information collection(s) contained in 
this NPRM, as required by the Paperwork Reduction Act (PRA) of 1995, 
Public Law 104-13. Public and agency comments are due July 26, 2004. 
PRA comments should address: (a) Whether the proposed collection of 
information is necessary for the proper performance of the functions of 
the Commission, including whether the information shall have practical 
utility; (b) the accuracy of the Commission's burden estimates; (c) 
ways to enhance the quality, utility, and clarity of the information 
collected; and (d) ways to minimize the burden of the collection of 
information on the respondents, including the use of automated 
collection techniques or other forms of information technology.
    OMB Control Number: 3060-0106.
    Title: Section 43.61--Reports of Overseas Telecommunications 
Traffic.
    Form No.: Not Applicable.
    Type of Review: Revision of a currently approved collection.
    Respondents: Businesses or other for-profit entities.
    Number of Respondents: 134.
    Estimated Time Per Response: 18 hours.
    Frequency of Response: Quarterly, Annual, on occasion.
    Total Annual Burden: 2412 hours.
    Total Annual Costs: $216,524.
    Needs and Uses: The information will be used by the Commission 
staff for international planning, facility authorization, monitoring 
emerging developments in communications services, analyzing market 
structures, tracking the balance of payments in international 
communications services, and market analysis purposes. The reported 
data enables the Commission to fulfill its regulatory responsibilities.
    OMB Control Number: 3060-0572.
    Title: Filing Manual for Annual International Circuit Status 
Reports.
    Form No.: Not Applicable.
    Type of Review: Revision of a currently approved collection.
    Respondents: Business and other for-profit entities.
    Number of Respondents: 138.
    Estimated Time Per Response: 11 hours.
    Frequency of Response: Annual reporting requirement.
    Total Annual Burden: 1,540 hours.
    Total Annual Costs: $42,600.
    Needs and Uses: The information will enable the Commission to 
discharge its obligation to authorize the construction and use of 
international common carrier transmission facilities. The information 
will be used by the Commission and the industry as to whether an 
international common carrier is providing direct or indirect service to 
countries and to assess industry trends in the use of international 
transmission facilities. The information is extremely valuable because 
it is not available from any other source.

Final Regulatory Flexibility Act Analysis

    As required by the Regulatory Flexibility Act (RFA), as amended, 
the Commission has prepared this Initial Regulatory Flexibility 
Analysis (IRFA) of the possible significant economic impact on a 
substantial number of small entities by the policies and rules proposed 
in this Notice of Proposed Rulemaking (NPRM). (See 5 U.S.C. 603. The 
RFA, see 5 U.S.C. 601-612, has been amended by the Small Business 
Regulatory Enforcement Fairness Act of 1996 (SBREFA), Pub. L. 104-121, 
Title II, 110 Stat. 857 (1996).)
    Written public comments are requested on this IRFA. Comments must 
be identified as responses to the IRFA and must be filed by the 
deadlines for comments on the Notice July 26, 2004. The Commission will 
send a copy of the Notice, including this IRFA, to the Chief Counsel 
for Advocacy of the Small Business Administration. In addition, the 
Notice and IRFA will be published in the Federal Register

A. Need for, and Objectives of, the Proposed Rules

    The Commission initiated this comprehensive review of the reporting 
requirements imposed on U.S. carriers providing international 
telecommunications services. The Commission believes that the proposals 
contained in the NPRM will make it easier for carriers, both small and 
large, to provide the information required by the rules. In addition, 
section 11 of the Telecommunications Act of 1996 directs the Commission 
to undertake, in every even-numbered year beginning in 1998, a review 
of all regulations issued under the Communications Act of 1934, as 
amended.
    The objective of this proceeding is to improve the reporting 
requirements of Sec. Sec.  43.61 and 43.82 imposed on carriers 
providing international telecommunications services. Specifically, the 
NPRM proposes to simplify, consolidate, and revise the annual traffic 
and revenue reporting requirements and the circuit-status reporting 
requirements. Also, the NPRM proposes to eliminate several reporting 
requirements.
    Currently, Sec.  43.61 requires that all international 
telecommunications carriers file an annual report of their traffic and 
revenues. In addition, Sec.  43.61 sets forth additional reporting 
requirements for specific carriers that meet the criteria set forth in 
the rule. Under Sec.  43.82, facilities-based common carriers providing 
international telecommunications services must file an annual report on 
the status of their circuits. The information derived from the 
international revenue and traffic report and circuit-status report is 
critical in understanding the international telecommunications market. 
These reports are the only source of publicly available information of 
this nature.
    The information obtained from these reports is used extensively by 
the Commission, the industry, other government agencies, and the 
public. The Commission uses the information to evaluate applications 
for international facilities, track market developments and the 
competitiveness of each service and geographical market to formulate

[[Page 29678]]

rules and policies consistent with the public interest, monitor 
compliance with those rules and policies, and gauge the competitive 
effect of its decisions on the market. The information is used to 
ensure compliance with the Commission's international rules and 
policies. The information enables the Commission to tailor policies to 
respond to the market developments on a particular route. The 
Commission also uses the information to identify those routes for which 
settlement rates are at a level low enough to permit relief from 
certain regulatory requirements, including the prohibition on the use 
of private lines for the provision of switched, basic services 
(``ISR''). Carriers use the information to track the balance of 
payments in international communications services and for market 
analysis purposes. Carriers and potential entrants use the information 
for, among other things, assessment of market opportunities and to 
monitor competition in markets. The Commission, along with other 
government agencies, uses the information in merger analyses and 
negotiations with foreign countries. In addition, the information 
contained in the circuit-stateus report allows the Commission to comply 
with the statutory requirements of the Omnibus Budget Reconciliation 
Act of 1993.

B. Legal Basis

    The NPRM is adopted pursuant to sections 1, 4(i) and (j), 11, 201-
205, 211, 214, 219, 220, 330(r), 309, and 403 of the Communications Act 
of 1934 as amended, 47 U.S.C. 151, 154(i), 154(j), 161, 201-205, 211, 
214, 219, 220, 303(r), 309, and 403.

C. Description and Estimate of the Number of Small Entities to Which 
the Proposals Will Apply

    The RFA directs agencies to provide a description of, and, where 
feasible, an estimate of the number of small entities that may be 
affected by the proposals, if adopted. 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. A small business concern is one that: (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).
    The proposals in the NPRM apply only to entities providing 
international common carrier services pursuant to section 214 of the 
Communications Act; entities providing domestic or international 
wireless common carrier services under section 309 of the Act; entities 
providing common carrier or non-common carrier satellite services under 
section 309 of the Act; and entities licensed to construct and operate 
submarine cables under the Cable Landing License Act on a common 
carrier or non-common carrier basis. The Commission has not developed a 
definition of small entities applicable to these entities. Therefore, 
the applicable definition of small entity is the definition under the 
SBA rules applicable to Telecommunications Services (see 13 CFR 
121.201, NAICS Code.) According to the SBA definition, wired 
telecommunications carriers, cellular and other wireless providers, and 
telecommunications resellers would be considered small entities if they 
employ 1,500 employees or less. The definition also considers satellite 
or other telecommunications providers as small entities if they have 
$12.5 million or less in annual receipts. (See 13 CFR 121.201, NAICS 
Code at Subsector 517--Telecommunications.)
    We have included small incumbent local exchange carriers in this 
present RFA analysis. As noted above, a ``small business'' under the 
RFA is one that, inter alia, meets the pertinent small business size 
standard (e.g., a telephone communications business having 1,500 or 
fewer employees), and ``is not dominant in its field of operation.'' 
The SBA's Office of Advocacy contends that, for RFA purposes, small 
incumbent local exchange carriers are not dominant in their field of 
operation because any such dominance is not ``national'' in scope. (See 
Letter from Jere W. Glover, Chief Counsel for Advocacy, SBA, to William 
E. Kennard, Chairman, FCC (May 27, 1999). The Small Business Act 
contains a definition of ``small-business concern,'' which the RFA 
incorporates into its own definition of ``small business.'' 15 U.S.C. 
632(a) (Small Business Act); 5 U.S.C. 601(3) (RFA). SBA regulations 
interpret ``small business concern'' to include the concept of 
dominance on a national basis. 13 CFR 121.102(b). We have therefore 
included small incumbent local exchange carriers in this RFA analysis, 
although we emphasize that this RFA action has no effect on Commission 
analysis and determinations in other, non-RFA contexts.
    The carriers required to file the traffic and revenue and circuit-
status reports are both large and small entities. In the 2001 annual 
traffic and revenue report, 625 carriers reported that they provided 
international message telephone service (IMTS) on a pure resale basis. 
(See FCC, Wireline Competition Bureau, Industry Analysis and Technology 
Division, ``2001 International Telecommunications Data'' at page 1, 
Statistical Findings (January 2003). FCC Web site location http://www.fcc.gov/wcb/iatd/intl.html.) Pure resale providers resell the 
services of underlying U.S. facilities-based and facilities-resale 
carriers. Pure resale service is primarily provided by small 
businesses. For example, of the 625 carriers, 277 carriers had revenues 
less than $10,000; 482 had revenues less than $500,000; and 513 had 
revenues less than $1 million. The report also shows that 52 U.S. 
facilities-based and facilities-resale carriers reported that they 
billed $10.8 billion for IMTS service, $1.4 billion for private line 
services, and $0.2 billion for international telex, telegraph, and 
other miscellaneous services. These carriers would be considered large 
entities under the SBA definition. (See 13 CFR 121.201, NAICS Code at 
Subsector 517--Telecommunications.) According to the 2002 Circuit-
Status Report, 79 U.S. international facility-based carriers filed 
information pursuant to Sec.  43.82. (See International Bureau Releases 
2002 Year-End Circuit Status Report for U.S. Facilities-Based 
International Carriers; Capacity Use Shows Modest Growth, rel. Dec. 24, 
2003. The report is available on the FCC Web site at http://www.fcc.gov/ib/pd/pf/csmanual.html.)
    The report does not yield employee or revenue statistics, so it is 
impossible for use to determine how many carriers could be considered 
small entities. Although it is quite possible that a carrier could 
report a small amount of capacity and have significant revenues, we 
will consider those carriers small entities at this time. Thus, of the 
79 carriers filing the annual circuit-status report for 2002, there 
were at least 8 carriers that could be considered small entities 
because they did not have any circuits in 2002.

D. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements

    The NPRM proposes to retain the annual traffic and revenue 
reporting requirements and the circuit-status reporting requirements 
because the collection and public reporting of this information 
continues to be necessary in the public interest. The NPRM, however, 
proposes to simplify and clarify the reporting requirements to reduce 
the burdens for both small and large carriers. Because carriers 
currently are required to file annual traffic and

[[Page 29679]]

revenue and circuit-status reports, the proposals contained in the NPRM 
will not impose any significant economic burden on small carriers. The 
information contained in the proposed reporting requirements is the 
same information that the carriers collect and maintain during the 
routine course of business. The NPRM contains a staff recommendation on 
the proposed reporting requirements, including eight proposed schedules 
that show the specific information that carries would be required to 
report and how they would report it. The proposed reporting 
requirements are described below. However, because the Commission may 
change the reporting proposed in the NPRM based on comments received in 
this proceeding, consequently, the schedules would also change.
    Schedule 1 contains a proposed summary report that applies to all 
entities, both small and large. This report would be a one-page form 
that international section 214 authorization holders would be required 
to file annually. The generic form would require a carrier to provide 
basic information about its international section 214 authorization. 
Specifically, the carrier would be required to provide its name, its 
Form 499-A identification number, its Commission Registration System 
(CORES) identification number, and a list of the international section 
214 authorizations that it holds. In addition, the carrier would 
provide basic information about the services that it provided the 
previous year. Based on the services the responding carriers reported, 
the schedule would inform the carrier which other schedules, if any, 
the carrier would be required to complete. The schedule would provide 
the carriers with information on which of its entities are required to 
file, including subsidiaries of the authorization holder that might 
need to file separately.
    Proposed Schedules 2 and 3 would require carriers to submit 
information on IMTS and seek country-by-country traffic and revenue 
information. Schedule 2 will require carriers to provide the 
information on ``outbound'' IMTS traffic, whereas Schedule 3 will 
require carriers to provide the information on ``inbound'' IMTS 
traffic. Under Schedule 2, carriers would report, their minutes and 
revenues/payouts if the ``source of traffic'' is from end users or 
another U.S. carrier and the carrier terminates those minutes with a 
foreign carrier, on the spot marked, or self terminates in the foreign 
country.
    Proposed Schedule 3 would require carriers to report, on a country-
by-country basis, the number of inbound minutes of IMTS carriers 
receive from their overseas correspondents and the dollar amounts they 
receive for terminating that traffic. Also, carriers would be required 
to continue to separate the inbound traffic they receive under the 
traditional settlement arrangements from inbound traffic they receive 
under all other arrangements, such as ISR, hubbing, etc.
    Proposed Schedule 4 would require carries to provide additional 
detail on a world total basis for the IMTS minutes and revenues for 
traffic billed to U.S. customers and for traffic billed to others. 
Carriers would be required to report the minutes of collect calls, 
international toll-free calls, country-beyond calls, and country-direct 
calls they handle. When reporting this information, carriers would be 
required to provide separate data for the minutes they receive from 
foreign carriers for traditional IMTS transit traffic, refilled 
traffic, and traffic received from spot markets.
    Proposed Schedule 5 would require pure resale carriers with over $5 
million in revenue from international services to report their U.S.-
customer minutes and revenues separately for U.S. end-user traffic, 
traffic handled for other U.S. carriers, and traffic re-originated for 
foreign carriers.
    Proposed Schedule 6 would require carriers to provide country-by-
country information on their international private-line services. 
Carriers would be required to report separately service provided over 
facilities they own and service provided over resold circuits. Proposed 
Schedule 6 includes a new category called ``Data Services'' to ensure 
proper reporting of several new services that carriers have begun to 
offer in recent years.
    Proposed Schedule 7 would require carriers to provide information 
regarding miscellaneous services. Services other than IMTS and private-
line service would be considered miscellaneous services. Carriers would 
be required to provide a minimal amount of information on the new 
services, such as the name of each service and the total annual 
revenues the carriers derived from the service.
    Proposed Schedule 8 would require carriers to provide a snapshot of 
their active and idle circuits as of December 31st of each year. 
Carriers would be required to report their circuit capacity on the 
basis of the type of facilities they use to provide service--submarine 
cables, satellites, and terrestrial links. Carriers would be required 
to report their circuit use in units of 64 Kilobit per second (Kbps) 
equivalent circuits.

E. Steps Taken To Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered

    The RFA requires an agency to describe any significant, 
specifically small business, alternatives that it has considered in 
reaching its proposed approach, which may include the following four 
alternatives (among others): ``(1) The establishment of differing 
compliance or reporting requirements or timetables that take into 
account the resources available to small entities; (2) the 
clarification, consolidation, or simplification of compliance and 
reporting requirements under the rule for small entities; (3) the use 
of performance, rather than design, standards; and (4) an exemption 
from coverage or the rule, or any part thereof, for small entities.''
    The NPRM seeks comment on a number of proposals to simplify and 
consolidate the reporting requirements for carriers providing 
international telecommunications services. The proposals in the NPRM 
are designed to reduce the regulatory requirements for both small and 
large carriers, while maintaining and enhancing the goals the reports 
serve. The Commission will also consider other additional significant 
alternatives developed in the record.
    The possible change to the reporting requirements with the most 
significant impact on small carriers is the proposal to exempt pure 
resale carriers with less then $5 million in revenues from 
international services the preceding year from filing reports. Based on 
the number of carriers filing the annual traffic and revenue report in 
2001, the majority of carriers would be considered small carriers. (See 
FCC, Wireline Competition Bureau, Industry Analysis and Technology 
Divison, ``2001 International Telecommunications Data'' at page 1, 
Statistical Findings (January 2003). FCC Web site location http://www.fcc.gov/wcb/iatd/intl.html.) This proposal would benefit a 
substantial number of small entities by relieving them from certain 
reporting requirements.
    The NPRM proposes to simplify the information that the carriers, 
both small and large, must submit for any traffic and revenue reports. 
First, the NPRM proposes to eliminate the requirement that carriers 
provide information on the number of messages that they carried the 
previous year. Second, the NPRM proposes to eliminate the requirement 
that carriers use the billing codes set out in the Sec.  43.61 Filing 
Manual and the Public Notices. Currently, carriers report international 
telephone traffic under 12 different billing codes, and the various

[[Page 29680]]

billing codes have presented recurring problems for carriers filing the 
reports as well as those who review the reports. Third, the NPRM 
proposes a set of schedules for the reporting of the traffic and 
revenue and circuit-status information in lieu of the two filing 
manuals that are currently used. The Notice proposes to streamline some 
of the reporting categories, which will reduce the reporting 
requirements on both small and large entities.
    The NPRM proposes to consolidate Sec.  43.61 (traffic and revenue 
reporting requirement) and Sec.  43.82 (circuit-status reporting 
requirement) into one rule. Consolidating the rules will eliminate the 
requirement that carriers file two separate reports--one for traffic 
and revenue data and one for circuit-status data. The Notice proposes 
that one filing manual be developed that will satisfy the reporting 
requirements of the new rule. One consolidated filing manual for both 
reports would be less confusing and less time-consuming for both small 
and large carriers.
    The NPRM also proposes to require carriers to file the report 
earlier than currently required in order to improve the timeliness of 
the resulting report. In selecting a proposed filing date, the 
Commission tried to balance the need for more expeditious filing with 
any burden an earlier filing would place on carriers. In addition, with 
more timely-filed data, it would be unnecessary for carriers to file 
corrected traffic and revenue data. The proposed new filing date 
minimizes any burden on the carriers because it does not coincide with 
any other reporting requirements. Also, carriers will not be burdened 
with filing another report with corrected data.
    The NPRM proposes changes in the format under which the carriers 
file the reports. The NPRM proposes replacing the current DOS-based 
filing procedures with spreadsheet-based reporting thereby allowing 
carriers to file their data using a commercial spread sheet program. 
This proposal should substantially reduce the burden on all carriers, 
both small and large, in preparing their data submissions. Also, 
carriers filing schedules that do not require country-by-country data 
could easily prepare and submit such information online. This, too, 
would substantially reduce the burden on the filing carrier, facilitate 
interactive edit checks, and allow data to be automatically loaded into 
the Commission's database programs.
    The NPRM seeks comment on whether it would significantly speed and 
facilitate the submission of data if the Commission were to encourage 
or mandate carriers to submit their data electronically. Electronic 
filing would lessen the burden of filing the reports for both small and 
large carriers. Because carriers maintain the data electronically, it 
would be practicable for carriers to submit the data in the same format 
rather than convert the data into a different format.
    The NPRM proposes a general report that will make it very simple 
for a carrier to determine which, if any, reporting requirements are 
applicable to the carrier. In addition, this proposal will simplify a 
carrier's compliance with other reporting requirements, such as the 
Form 499-A.

F. Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rules

    None.
Ordering Clauses
    Accordingly, pursuant to the authority contained in sections 1, 
4(i), 4(j), 11, 201-205, 211, 214, 219, 220, 303(r), 309, and 403 of 
the Communications Act of 1934, as amended, 47 U.S.C. Sections 151, 
154(i), 154(j), 161, 201-205, 211, 214, 219, 220, 303(r), 309 and 403, 
this notice of proposed rulemaking is hereby adopted and comments are 
requested as described above.
    The Commission's Consumer and Governmental Affairs Bureau, 
Reference Information Center, shall send a copy of this notice of 
proposed rulemaking, including the Initial Regulatory Flexibility Act 
Analysis, to the Chief Counsel for Advocacy of the Small Business 
Administration in accordance with section 603(a) of the Regulatory 
Flexibility Act, 5 U.S.C. 601 et seq.

List of Subjects in 47 CFR Parts 1, 43 and 63

    Communications common carriers, Reporting and recordkeeping 
requirements, Telecommunications.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Rule Changes

    For the reasons discussed in the preamble, the Federal 
Communications Commission proposes to amend 47 CFR parts 1, 43 and 63 
as follows:

PART 1--PRACTICE AND PROCEDURE

    1. The authority citation for part 1 continues to read as follows:

    Authority: 47 U.S.C. 151, 154(i), 154(j), 155, 225, 303(r), 309 
and 325(e).


Sec.  1.789  [Removed]

    2. Remove Sec.  1.789.

PART 43--REPORTS OF COMMUNICATION COMMON CARRIERS AND CERTAIN 
AFFILIATES

    3. The authority citation for part 43 continues to read as follows:

    Authority: 47 U.S.C. 154; Telecommunications Act of 1996, Pub. 
L.104-104, secs. 402(b)(2)(B), (c), 110 Stat. 56 (1996) as amended 
unless otherwise noted. 47 U.S.C. 211, 219, 220 as amended.


Sec.  43.53  [Removed]

    4. Remove Sec.  43.53.
    5. Section 43.61 is revised to read as follows:


Sec.  43.61  Reporting requirements for U.S. international carriers.

    (a) Annual traffic and revenue reports. Each carrier engaged in 
providing international telecommunications service between the area 
comprising the continental United States, Alaska, Hawaii, and off-shore 
U.S. points and any country or point outside that area shall file a 
report with the Commissions not later than May 1, of each year showing 
traffic and revenue fro international services provided in the 
preceding calendar year.
    (b) Quarterly traffic reports for facilities-based carriers. (1) 
Each common carrier engaged in providing international 
telecommunications service between the area comprising the continental 
United States, Alaska, Hawaii, and off-shore U.S. points and any 
country or point outside that area shall file with the Commission, in 
addition to the report required by paragraph (a) of this section, 
actual traffic and revenue data for each calendar quarter in which the 
carrier's quarterly minutes exceed the corresponding minutes for all 
carriers by one or more of the following tests:
    (i) The carrier's aggregate minutes of facilities-based or private-
line resale switched telephone traffic for service billed in the United 
States are greater than 1.0 percent of the total of such minutes of 
international traffic for all U.S. carriers published in the 
Commission's most recent Sec.  43.61 annual report of international 
telecommunications traffic;
    (ii) The carrier's aggregate minutes of facilities-based or 
private-line resale switched telephone traffic for service billed 
outside the United States are greater than 1.0 percent of the total of 
such minutes of international traffic for all U.S. carriers published 
in the Commission's most recent Sec.  43.61 annual report of 
international telecommunications traffic;

[[Page 29681]]

    (iii) The carrier's aggregate minutes of facilities-based or 
private-line resale switched telephone traffic for service billed in 
the United States for any foreign country are greater than 2.5 percent 
of the total of such minutes of international traffic for that country 
for all U.S. carriers published in the Commission's most recent Sec.  
43.61 annual report of international telecommunications traffic; or
    (iv) The carrier's aggregate minutes of facilities-based or 
private-line resale switched telephone traffic for service billed 
outside the United States for any foreign country are greater than 2.5 
percent of the total of such minutes of international traffic for that 
country for all U.S. carriers published in the Commission's most recent 
Sec.  43.61 annual report of international telecommunications traffic.
    (2) Except as provided in this paragraph, the quarterly reports 
required by paragraph (b)(1) of this section shall be filed in the same 
format as, and in conformance with, the filing procedures for the 
annual reports required by paragraph (a) of this section.
    (i) Carriers filing quarterly reports shall include in those 
reports only their provision of switched, facilities-based telephone 
service and switched, private-line resale telephone service.
    (ii) The quarterly reports required by paragraph (b)(1) of this 
section shall be filed with the Commission no later than April 30 for 
the prior January through March quarter; no later than July 31 for the 
prior April through June quarter; no later than October 31 for the 
prior July through September quarter; and no later than January 31 for 
the prior October through December period.
    (c) Quarterly Traffic Reports for resale carriers. Each common 
carrier engaged in the resale of international switched services that 
is affiliated with a foreign carrier that has sufficient market power 
on the foreign end of an international route to affect competition 
adversely in the U.S. market and that collects settlement payments from 
U.S. carriers shall file a quarterly version of the report required in 
paragraph (a) of this section for its switched resale services on the 
dominant route within 90 days from the end of each calendar quarter. 
Commercial Mobile Radio Service (CMRS) carriers, as defined in Sec.  
20.9 of this chapter, are not required to file reports pursuant to this 
paragraph.
    (d) Circuit status reports. Each facilities-based carrier engaged 
in providing international telecommunications service between the area 
comprising the continental United States, Alaska, Hawaii, and off-shore 
U.S. points and any country or point outside that area shall file a 
circuit status report with the Commission not later than May 1, each 
year showing the status of its circuits used to provide international 
services as of December 31, of the preceding calendar year.
    (e) Filing manual. The information required under this section 
shall be furnished in conformance with the instructions and reporting 
requirements prepared under the direction of the Chief, International 
Bureau, prepared and published as a filing manual.
    (f) Definitions. (1) Two entities are affiliated with each other if 
one of them, or any entity that controls one of them, directly or 
indirectly owns more than 25 percent of the capital stock of, or 
controls, the other one, Also, a U.S. carrier is affiliated with two or 
more foreign carriers if the foreign carriers, or entities that control 
them, together directly or indirectly own more than 25 percent of the 
capital stock of, or control, the U.S. carrier and those foreign 
carriers are parties to, or the beneficiaries of, a contractual 
relation (e.g., a joint venture or market alliance) affecting the 
provision or marketing of international basic telecommunications 
services in the United States.
    (2) Facilities-based carrier means a carrier that holds an 
ownership, indefeasible-right-of-user, or leasehold interest in bare 
capacity in the U.S. end of an international facility, regardless of 
whether the underlying facility is a common carrier or non-common 
carrier submarine cable or a satellite system.
    (3) Foreign carrier is defined as any entity that is authorized 
within a foreign country to engage in the provision of international 
telecommunications services offered to the public in that country 
within the meaning of the International Telecommunication Regulations, 
see Final Acts of the World Administrative Telegraph and Telephone 
Conference, Melbourne, 1988 (WATTC-88), Art. 1, which includes entities 
authorized to engage in the provision of domestic telecommunications 
services if such carriers have the ability to originate or terminate 
telecommunications services to or from points outside their country.


Sec.  43.82  [Removed]

    6. Remove Sec.  43.82.

PART 63--EXTENSION OF LINES, NEW LINES AND DISCONTINUANCE, 
REDUCTION, OUTAGE AND IMPAIRMENT OF SERVICE BY COMMON CARRIERS; AND 
GRANTS OF RECOGNIZED PRIVATE OPERATING AGENCY STATUS

    7. The authority citation for part 63 continues to read as follows:

    Authority: Sections 1, 4(i), 4(j), 10, 11, 201, 205, 214, 218, 
403 and 651 of the Communications Act of 1934, as amended, 47 U.S.C. 
151, 154(i), 154(j), 160, 201, 205, 214, 218, 403, and 571, unless 
otherwise noted.


Sec.  63.23  [Amended]

    8. Section 63.23 is amended by removing paragraph (e) and 
redesignating paragraph (f) as paragraph (e).

[FR Doc. 04-10837 Filed 5-24-04; 8:45 am]
BILLING CODE 6712-01-M