[Federal Register Volume 72, Number 142 (Wednesday, July 25, 2007)]
[Proposed Rules]
[Pages 40814-40816]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-14272]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 0, 1, 61 and 69

[WC Docket No. 05-25; RM-10593; FCC 07-123]


Parties Asked To Refresh Record in the Special Access Notice of 
Proposed Rulemaking

AGENCY: Federal Communications Commission.

[[Page 40815]]


ACTION: Proposed rule.

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SUMMARY: In the Special Access Notice of Proposed Rulemaking (NPRM), 
the Commission commenced a broad examination of the regulatory 
framework to apply to interstate special access services provided by 
price cap local exchange carriers (LECs), including whether the special 
access pricing flexibility rules that the Commission adopted in 1999 
have worked as intended. This document invites interested parties to 
update the record in light of industry developments.

DATES: Comments are due on or before August 8, 2007 and reply comments 
are due on or before August 15, 2007.

ADDRESSES: You may submit comments, identified by WC Docket No. 05-25 
and RM-10593, by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Federal Communications Commission's Web Site: http://www.fcc.gov/cgb/ecfs/. Follow the instructions for submitting comments.
     E-mail: [email protected], and include the following words in 
the body of the message: ``Get form.'' A sample form and directions 
will be sent in response.
     First-class or overnight U.S. Postal Service mail: 
Secretary, Federal Communications Commission, 445 12th Street, SW., 
Washington, DC 20554.

Detailed instructions for submitting comments, including how to submit 
comments by hand, messenger delivery or by commercial overnight 
courier, and additional information on the rulemaking process are 
contained in the SUPPLEMENTARY INFORMATION section of this document.

FOR FURTHER INFORMATION CONTACT: Margaret Dailey, Wireline Competition 
Bureau, Pricing Policy Division (202) 418-1520, 
[email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Public 
Notice, FCC 07-12, released on July 9, 2007. The full text of this 
document is available for public inspection during regular business 
hours at the FCC Reference Information Center, Portals II, 445 12th 
Street, SW., Washington, DC 20554 and may be viewed on the Commission's 
Web site at http://www.fcc.gov/.
    Pursuant to the Commission's rules governing notices of proposed 
rulemakings, 47 CFR 1.415, 1.419, the Commission invites interested 
parties to update the record in this proceeding. In the Special Access 
NPRM, 70 FR 19381, April 13, 2005, the Commission commenced a broad 
examination of the regulatory framework to apply to interstate special 
access services provided by price LECs, including whether the special 
access pricing flexibility rules that the Commission adopted in 1999 
have worked as intended. 47 CFR 69.701 et seq.; Pricing Flexibility 
Order, 64 FR 51258, Sept. 22, 1999. On June 8, 2005, a Protective Order 
was entered to enable parties to submit documents that contain 
proprietary or confidential information and to ensure adequate 
protection for such documents. In response to the Special Access NPRM, 
the Commission received comments on June 13, 2005 and reply comments on 
July 29, 2005.
    Since these comments were filed, a number of developments in the 
industry may have affected parties' positions on the issues raised in 
the Special Access NPRM. These developments include a number of 
significant mergers and other industry consolidations, the continued 
expansion of intermodal competition in the market for 
telecommunications services, which affects the uses of, and competition 
to provide, a variety of special access services or alternatives; and 
GAO's November 2006 release of Report 07-80 (GAO Report), which 
summarizes its review of certain aspects of the market for special 
access services. Accordingly, the Commission requests that parties 
refresh the record in this proceeding to reflect the effects of these 
developments. Parties should include any new information or arguments 
that may be relevant to the Commission's consideration of what action, 
if any, may be appropriate in this proceeding. We also ask parties to 
address the specific questions below, which were not raised in the 
Special Access NPRM. First, parties should comment on the effect of the 
post Special Access NPRM mergers and other industry consolidation on 
the availability of competitive special access facilities and 
providers. Parties should also comment on the effect these mergers may 
have had on scale economies or the profitability of special access 
services. In addition, since the release of the Special Access NPRM, 
demand for wireless voice and wireless broadband services has 
increased, and special access has been an important input for these 
services. We seek comment on how special access pricing affects the 
price and availability of wireless services and the investment in and 
deployment of wireless networks. In the Special Access NPRM, the 
Commission sought comment on both the price and cost of special access 
services, and on how costs for special access facilities should be 
estimated. We seek comment here on methods that may be used to estimate 
the costs of special access facilities, including whether models may 
appropriately be used to estimate such costs. For example, cost and 
engineering models have been used to estimate the cost of Unbundled 
Network Elements. Could they also be used to estimate costs of special 
access facilities? We note that a number of carriers have embarked on 
significant upgrades to their networks to provide high capacity 
services to their customers. We seek information on projected costs per 
customer to deploy these facilities. To assist in the assessment of the 
reasonableness of rates for special access services, we ask parties to 
supplement the record with information on vendor prices for high 
capacity transmission equipment, outside plant, fiber, and fiber 
installation, and on prices for nonregulated services that provide 
similar or equivalent capabilities to special access services, such as 
Ethernet and packet-based services.
    In the Special Access NPRM, the Commission noted that an 
examination of the current state of competition in the marketplace is 
critical to a determination of whether our pricing flexibility rules 
have worked as intended. We asked parties to comment and provide data 
on whether DS-1 special access channel terminations between the LEC end 
office and the customer premises are in the same product market as DS-3 
and OCn channel terminations. In light of rapid changes in fiber 
technologies, we now ask parties to comment on whether we should 
further subdivide optical fiber services into low capacity OCn services 
(such as OC-3) and higher capacity OCn services. We particularly seek 
information as to how much capacity competitors believe is necessary to 
justify building new facilities to serve customers.
    This inquiry is also relevant to the Commission's analysis of 
demand responsiveness. In the Special Access NPRM, the Commission 
stated that parties may demonstrate that the market for a particular 
special access service is not competitive by showing that a significant 
number of an incumbent price cap LEC's customers cannot purchase a 
comparable special access service from an entity other than the LEC. 
Parties are invited to comment on whether any changes in the market 
have affected the availability of comparable alternatives. To the 
extent that parties contend that continued regulation of special access 
services is warranted, we request that they provide specific

[[Page 40816]]

proposals for an appropriate regulatory scheme to assure reasonable 
rates and conditions for special access services. Finally, we ask 
parties to comment on the analysis and findings in the GAO Report 
summarizing GAO's review of competition in the market for special 
access services.

Procedural Matters

Ex Parte Requirements

    This matter shall be treated as a ``permit-but-disclose'' 
proceeding in accordance with the Commission's ex parte rules. 47 CFR 
1.1200 et seq. Persons making oral ex parte presentations are reminded 
that memoranda summarizing the presentations must contain summaries of 
the substance of the presentations and not merely a listing of the 
subjects discussed. More than a one- or two-sentence description of the 
views and arguments presented generally is required. 47 CFR 
1.1206(b)(2). Other rules pertaining to oral and written presentations 
are set forth at 47 CFR 1.1206(b).

Comment Filing Procedures

    Pursuant to Commission rules governing notices of proposed 
rulemakings, interested parties may file comments on or before August 
8, 2007 and reply comments on or before August 15, 2007. 47 CFR 1.415, 
1.419. All pleadings must reference WC Docket No. 05-25 and RM-10593. 
Comments may be filed using: (1) The Commission's Electronic Comment 
Filing System (ECFS); (2) the Federal Government's eRulemaking Portal; 
or (3) by filing paper copies. See Electronic Filing of Documents in 
Rulemaking Proceedings, 63 FR 24121, May 1, 1998. Comments may be filed 
electronically using the Internet by accessing the ECFS at http://www.fcc.gov/cgb/ecfs/ or the Federal eRulemaking Portal: http://www.regulations.gov. Filers should follow the instructions provided on 
the Web sites for submitting comments. For ECFS filers, if multiple 
docket or rulemaking numbers appear in the caption of this proceeding, 
filers must transmit one electronic copy of the comments for each 
docket or rulemaking number referenced in the caption. In completing 
the transmittal screen, filers should include their full name, U.S. 
Postal Service mailing address, and the applicable docket or rulemaking 
number. Parties may also submit an electronic comment by Internet e-
mail. To get filing instructions, commenters should send an e-mail to 
[email protected], and should include the following words in the body of the 
message: ``get form.'' A sample form and directions will be sent in 
reply.
    Parties who choose to file by paper must file an original and four 
copies of each filing. If more than one docket or rulemaking number 
appear in the caption of this proceeding, commenters must submit two 
additional copies for each additional docket or rulemaking number. 
Filings can be sent by hand or messenger delivery, by commercial 
overnight courier, or by first-class or overnight U.S. Postal Service 
mail (although we continue to experience delays in receiving U.S. 
Postal Service mail). Parties are strongly encouraged to file comments 
electronically using the Commission's ECFS. All filings must be 
addressed to the Commission's Secretary, Marlene H. Dortch, Office of 
the Secretary, Federal Communications Commission.
    The Commission's contractor will receive hand-delivered or 
messenger-delivered paper filings for the Commission's Secretary at 236 
Massachusetts Avenue, NE., Suite 110, Washington, DC 20002. The filing 
hours at this location are 8 a.m. to 7 p.m. All hand deliveries must be 
held together with rubber bands or fasteners. Any envelopes must be 
disposed of before entering the building. Commercial overnight mail 
(other than U.S. Postal Service Express Mail and Priority Mail) must be 
sent to 9300 East Hampton Drive, Capitol Heights, MD 20743. U.S. Postal 
Service first-class, Express, and Priority mail should be addressed to 
445 12th Street, SW., Washington DC 20554.
    Parties should also send a copy of their filings to Margaret 
Dailey, Pricing Policy Division, Wireline Competition Bureau, Federal 
Communications Commission, Room 5-A232, 445 12th Street, SW., 
Washington, DC 20554, or by e-mail to [email protected]. Parties 
shall also serve one copy with the Commission's copy contractor, Best 
Copy and Printing, Inc. (BCPI), Portals II, 445 12th Street, SW., Room 
CY-B402, Washington, DC 20554, (202) 488-5300, or via e-mail to 
[email protected].
    Documents in WC Docket No. 05-25 and RM-10593 are available for 
public inspection and copying during business hours at the FCC 
Reference Information Center, Portals II, 445 12th Street, SW., 
Washington, DC 20554. The documents may also be purchased from BCPI, 
telephone (202) 488-5300, facsimile (202) 488-5563, TTY (202) 488-5562, 
e-mail [email protected]. These documents may also be viewed on the 
Commission's Web site at http://www.fcc.gov/. People with Disabilities: 
To request materials in accessible formats for people with disabilities 
(braille, large print, electronic files, audio format), send an e-mail 
to [email protected] or call the Consumer & Governmental Affairs Bureau at 
(202) 418-0530 (voice), (202) 418-0432 (tty).

List of Subjects

47 CFR Part 0

    Organization and functions (Government agencies).

47 CFR Part 1

    Administrative practice and procedure, Communications common 
carriers, Telecommunications.

47 CFR Parts 61 and 69

    Communications common carriers, Reporting and recordkeeping 
requirements, Telephone.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.
 [FR Doc. E7-14272 Filed 7-24-07; 8:45 am]
BILLING CODE 6712-01-P