[Federal Register Volume 82, Number 72 (Monday, April 17, 2017)]
[Proposed Rules]
[Pages 18090-18096]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-07547]


 ========================================================================
 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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 

  Federal Register / Vol. 82, No. 72 / Monday, April 17, 2017 / 
Proposed Rules  

[[Page 18090]]



FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 43 and 63

[IB Docket Nos. 17-55 and 16-131, FCC 17-28]


Reporting Requirements for U.S. Providers of International 
Services; 2016 Biennial Review of Telecommunications Regulations

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: In this Notice of Proposed Rulemaking (NPRM), the Federal 
Communications Commission (Commission) seeks comment on the federal 
need for the international services reporting requirements set forth in 
the Commission's rules. Those reporting requirements are the annual 
Traffic and Revenue Reports and the Circuit Capacity Reports. The 
Commission believes these reports are no longer necessary in their 
current form. The Commission proposes to eliminate the annual Traffic 
and Revenue Reports altogether, and seeks comment on whether there are 
ways to further streamline the Circuit Capacity Reports.

DATES: Submit comments on or before May 17, 2017, and replies on or 
before June 1, 2017.

ADDRESSES: You may submit comments, identified by IB Docket Nos. 16-131 
and 17-55, by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Federal Communications Commission's ECFS Web site: http://fjallfoss.fcc.gov/ecfs2/. Follow the instructions for submitting 
comments.
     People with Disabilities: Contact the FCC to request 
reasonable accommodations (accessible format documents, sign language 
interpreters, CART, etc.) by email to [email protected], phone: 202-418-
0530 (voice), tty: 202-418-0432.
    For detailed instructions on submitting comments and additional 
information on the rulemaking process, see the SUPPLEMENTARY 
INFORMATION section of this document.

FOR FURTHER INFORMATION CONTACT: David Krech or Arthur Lechtman, 
Telecommunications and Analysis Division, International Bureau, FCC, 
(202) 418-1480 or via email to [email protected] or 
[email protected]. On PRA matters, contact Cathy Williams, Office 
of the Managing Director, FCC, (202) 418-2918 or via email to 
[email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Proposed Rulemaking in IB Docket Nos. 16-131 and 17-55, adopted on 
March 23, 2017 and released on March 23, 2017. In the Notice of 
Proposed Rulemaking, the Commission seeks comment on the federal need 
for the international services reporting requirements set forth in 
Section 43.62 of the Commission's rules. The full text of this document 
is available for inspection and copying during normal business hours in 
the FCC Reference Center, 445 12th Street SW., Washington, DC 20554. 
The document also is available for download over the Internet at: 
https://www.fcc.gov/document/section-4362-nprm.

Comment Filing Procedures

    Pursuant to 47 CFR 1.415, 1.419, interested parties may file 
comments and reply comments on or before the dates indicated above. 
Comments may be filed using the Commission's Electronic Comment Filing 
System (ECFS). See Electronic Filing of Documents in Rulemaking 
Proceedings, 63 FR 24121 (1998).
     Electronic Filers: Comments may be filed electronically 
using the Internet by accessing the Commission's ECFS Web site at 
http://apps.fcc.gov/ecfs/.
     Paper Filers: Parties who choose to file by paper must 
file an original and one copy of each filing. If more than one docket 
or rulemaking number appears in the caption of this proceeding, filers 
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. All filings must be addressed to the Commission's 
Secretary, Office of the Secretary, Federal Communications Commission.
     All hand-delivered or messenger-delivered paper filings 
for the Commission's Secretary must be delivered to FCC Headquarters at 
445 12th St. SW., Room TW-A325, Washington, DC 20554. The filing hours 
are 8:00 a.m. to 7:00 p.m. All hand deliveries must be held together 
with rubber bands or fasteners. Any envelopes and boxes 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 must be addressed to 445 12th Street SW., Washington DC 20554.

Synopsis

    1. In this NPRM, the Commission seeks comment on the federal need 
for the international services reporting requirements set forth in 
section 43.62 of the Commission's rules. See Reporting Requirements for 
U.S. Providers of International Telecommunications Services; Amendment 
of part 43 of the Commission's Rules, IB Docket No. 04-112, Second 
Report and Order, 78 FR 15615 (2013). Those reporting requirements fall 
into two categories. First, the Traffic and Revenue Reports require 
providers of international telecommunications services to report 
annually their traffic and revenue for international voice services, 
international miscellaneous services, and international common carrier 
private lines. Second, the Circuit Capacity Reports require providers 
of international telecommunications services to file annual reports 
identifying the submarine cable, satellite, and terrestrial capacity 
between the United States and foreign points. The Commission believes 
these reports are no longer necessary in their current form. The 
Commission proposes to eliminate the annual Traffic and Revenue Reports 
altogether, and seeks comment on whether there are ways to further 
streamline the Circuit Capacity Reports.
    2. Traffic and Revenue Reports. Currently, any person or entity 
that holds an international section 214

[[Page 18091]]

authorization to provide International Telecommunications Services 
(ITS) and/or any person or entity that is engaged in the provision of 
Interconnected Voice over Internet Protocol (VoIP) Services Connected 
to the Public Switched Telephone Network (PSTN) between the United 
States and any foreign point (together, Filing Entities) must file an 
annual Traffic and Revenue Report. ITS refers to telecommunications 
service between the United States and a foreign point. Interconnected 
VoIP Service Connected to the PSTN refers to service between the United 
States and any foreign point that: (1) Enables real-time, two-way voice 
communications; (2) requires a broadband connection from the user's 
location; (3) requires Internet Protocol-compatible customer premise 
equipment; and (4) permits users generally to receive calls that 
originate on the PSTN or to terminate calls to the PSTN. Filing Manual 
for section 43.62 Annual Reports (IB Feb. 2016) (section 43.62 Filing 
Manual). The information submitted for this annual report covers: (1) 
International Calling Service (ICS); (2) International Private Line 
Service; and (3) International Miscellaneous Services. ICS is defined 
as international message telephone service (IMTS) and Interconnected 
VoIP Connected to the PSTN, including International Call Completion 
Service for IMTS or Interconnected VoIP Connected to the PSTN. IMTS 
consists of telecommunications services (including voice and low-speed 
dial-up data) provided over the public switched networks of U.S. 
international carriers. International Private Line Service is defined 
as Private Line Service between the United States and a foreign point. 
Private Line Service refers to making available to a customer on a 
common carrier basis a circuit for a specified period of time for the 
customer's exclusive use. International Miscellaneous Service refers to 
any international telecommunications service other than ICS and 
International Private Line Service. Section 43.62 Filing Manual. Each 
person or entity that holds an international section 214 authorization, 
whether or not it provided any ITS during the preceding calendar year, 
must file at least a registration form and services checklist 
indicating whether it provided international service the previous year. 
Filing Entities that only had $5 million or less in ICS resale revenues 
need only file the registration form and services checklist. Filing 
Entities report information on International Miscellaneous Services for 
which they had $5 million or more in revenue.
    3. Historically, the primary role of the international Traffic and 
Revenue Reports was to monitor settlement rates. The reports were 
important in the development and enforcement of the Commission's 
benchmark policy, requiring international settlement rates on 
particular routes to fall below competitive benchmarks. International 
Settlement Rates, IB Docket No. 96-261, Report and Order, 62 FR 45758 
(1997) (Benchmarks Order). As the international telecommunications 
sector has liberalized and competition has grown, the Commission has 
determined that most routes were competitive based, in large part, on 
the Traffic and Revenue Reports; data from these reports thus allowed 
the Commission to end its International Settlements Policy. See 
International Settlements Policy Reform et al., IB Docket Nos. 11-80, 
et al., Report and Order, 78 FR 11109 (2013); International Settlements 
Policy Reform; International Settlement Rates, IB Docket Nos. 02-324, 
96-261, First Report and Order, 69 FR 23151 (2004).
    4. Circuit Capacity Reports. The Circuit Capacity Reports help the 
Commission understand the U.S.-international transport markets. The 
Commission receives two types of data regarding submarine cables: (1) 
Submarine cable operators report the available and planned capacity of 
their submarine cable systems and (2) common carriers and submarine 
cable licensees report the capacity that they own or lease on a 
submarine cable. Submarine cable landing licensees are required to file 
available and planned capacity information for each cable system as of 
December 31 of the reporting period. Any U.S. international common 
carrier or cable landing licensee that owned or leased capacity on a 
submarine cable between the United States and any foreign point on 
December 31 of the reporting period is required to file capacity 
amounts for the following categories: (1) Owned capacity; (2) net 
indefeasible rights-of-use (IRUs); (3) net inter-carrier leaseholds 
(ICLs); (4) net capacity held (i.e., the total of categories (1) 
through (3)); (5) activated capacity; and (6) non-activated capacity. 
Section 43.62 Filing Manual. The Commission also receives world total 
circuit data for terrestrial and satellite facilities. Each facilities-
based common carrier is required to file a report showing its active 
common carrier terrestrial or satellite circuits between the United 
States and any foreign point as of December 31 of the preceding 
calendar year. The terrestrial and satellite circuits are reported in 
world-total counts of 64 kilobits per second (kbps) circuit units. In 
addition, non-common carrier satellite operators are required to report 
a world-total count of circuits used by themselves or their affiliates, 
or sold or leased to any customer as of December 31 of the reporting 
period, other than to an international common carrier authorized by the 
Commission to provide U.S. international common carrier services.
    5. The Circuit Capacity Reports show the level of facilities-based 
competition for the major U.S.-international routes, and can help 
policy-makers and industry determine whether there is and will be 
sufficient capacity to handle demand for telecommunications on a 
specific U.S.-international route. The Commission has used the data in 
analyzing proposed transactions in the U.S.-international services 
markets, particularly with respect to whether a transaction would 
affect facilities-based competition on any particular U.S.-
international route(s). The data are used to determine whether entry by 
foreign companies will benefit or adversely affect competition.
    6. The Commission also uses the data for national security and 
public safety purposes, to ensure that U.S. international 
telecommunications are safe from disruption, and to provide information 
about key routes and whether there are alternative cables or satellite 
facilities available to provide communications to specific locations. 
The data provide information on ownership and control of submarine 
cable capacity, to help national security agencies assess the safety 
and integrity of U.S.-international telecommunications infrastructure. 
The Commission also uses the terrestrial, satellite, and submarine 
cable capacity data to administer the annual regulatory fees 
established in section 9 of the Communications Act of 1934, as amended 
(the Act). 47 U.S.C. 159.
    7. Biennial Review. On November 3, 2016, the Commission released a 
Public Notice seeking comment on the 2016 biennial review of our 
telecommunications regulations pursuant to section 11 of the Act. 47 
U.S.C. 161; 31 FCC Rcd 12166 (2016). Several parties recommend that we 
further streamline or eliminate the reporting requirements in section 
43.62 of the Commission's rules, and no party wrote in support of 
retaining these requirements.
    8. DISCUSSION. After reviewing the record in this biennial review 
proceeding, and based on our own understanding of the competitive 
nature of the international services sector, we

[[Page 18092]]

believe that the international traffic and revenue data collection is 
no longer necessary, and we propose to eliminate this reporting 
requirement. We instead believe that more targeted collections, in 
response to actual U.S. carrier complaints, may provide the Commission 
with all the information it needs.
    9. In contrast, we believe that it might serve the public interest 
to retain the Circuit Capacity Reports. We thus explore whether, 
instead of eliminating these reports, there are ways we could 
streamline or modify this data collection while continuing to meet our 
statutory obligations.
    10. Traffic and Revenue Reports. We propose to eliminate the 
current international Traffic and Revenue Reports requirement. We 
believe that the costs of this data collection--which are significant 
both for filers and for the Commission--now exceed the benefits of the 
information. We seek comment on what effect elimination of this 
reporting requirement will have on U.S. consumers and U.S. carriers, 
and whether there may be less burdensome ways for the Commission to 
obtain data in order to fulfill its statutory obligations and protect 
U.S. interests.
    11. The international traffic and revenue reporting requirement 
appears to place a significant burden on the filing entities and the 
Commission. Although the Commission does not have firm numbers on the 
costs to industry to prepare and submit the reports, we have developed 
estimates of the burdens. These estimates have been derived by applying 
the number of traffic and revenue filings in 2016 to the burden 
estimates in the Paperwork Reduction Act review process for the annual 
Traffic and Revenue Reports and Circuit Capacity Reports. In 2016, 
1,888 entities filed information regarding their 2015 international 
traffic and revenue. Of those, 1,822 filed only a registration form and 
did not file any data because they either did not have any 
international revenues in 2015, or only had less than $5 million in ICS 
resale revenue. Sixty-six filed data for ICS facilities-based services, 
International Private Line Services and/or International Miscellaneous 
Services, and 47 of the 66 filed revisions. In 2014, the Commission 
estimated that filers spend one hour preparing and filing the 
registration form; two hours preparing and filing world total ICS 
resale data; 150 hours preparing and submitting route-by-route data for 
facilities-based ICS and or international private lines; and 50 hours 
preparing and filing revised data. In total, we estimate that industry 
spent 14,770 hours preparing and submitting the data for the 2015 
annual Traffic and Revenue Reports. We estimate that Commission staff 
will spend 2,218 hours reviewing and publishing the data at a total 
cost of at least $112,076. We seek comment on these estimates and ask 
commenters to provide us with the cost of preparing and submitting the 
Traffic and Revenue Reports. In particular, we seek comment on the 
actual time spent to produce the data and ask commenters to provide us 
with an average wage rate. AT&T Services Inc., for example, reported 
that nearly 300 hours were required to prepare its Traffic and Revenue 
Report. We also seek comment on the complexity involved in providing 
data to the Commission. Do commenters have the information required for 
filing readily available from their internal systems? Do commenters 
need to maintain redundant systems or perform complex analysis on their 
internal data in order to submit their reports? What impact, if any, 
does the complexity of analysis required have on the reliability of the 
data submitted?
    12. Given the increasing level of competition on most U.S-
international routes, we believe that the benefits of the Traffic and 
Revenue Reports have so diminished that they no longer outweigh the 
costs. In the last 20 years, since the implementation of the World 
Trade Organization (WTO) Basic Telecom Agreement and the establishment 
of the Commission's benchmarks settlements policy, the international 
telecommunications sector has become much more competitive on both the 
U.S. and foreign ends, as government regulations in the United States 
and abroad were relaxed, and enabled entry. As a result, both U.S.-
international average settlement rates and average IMTS revenue per 
minute have dropped dramatically. IMTS is defined as the provision of 
message telephone service (MTS) between the United States and a foreign 
point. The term MTS refers to the transmission and reception of speech 
and low-speed dial-up data over the PSTN. Section 43.62 Filing Manual. 
Average settlement rates paid out by U.S. carriers have decreased from 
$0.18 per minute in 2000 to $0.03 per minute in 2014, an 83 percent 
drop. Average facilities ICS revenue per minute, which is a general 
measure of international calling prices, has decreased from $0.47 per 
minute in 2000 to $0.04 per minute in 2014, indicating a drop of 85 
percent in the price to consumers for international calling.
    13. Additionally, the data we collect may actually understate the 
competitiveness of the international market. Although we collect data 
from interconnected VoIP providers (354 interconnected VoIP providers 
filed Traffic and Revenue Reports in 2015), we do not mandate reporting 
from non-interconnected VoIP providers, many of whose services are free 
to the customer. This indicates that overall consumer rates for 
international voice traffic may be below those indicated by the 
reports. As use of those services continues to increase, it calls into 
question the continuing value of the overall traffic and revenue data, 
since such data reveal only a fraction of the overall picture of 
international communications, a fraction that is likely to grow smaller 
over time. To the extent information is available, we seek comment on 
what portion of international telecommunications services is provided 
by non-interconnected VoIP services, the projected future growth of 
those services, and their impact on the relevance and accuracy of our 
current Traffic and Revenue Reports.
    14. Settlement rates to most foreign points are also well below the 
benchmark rate established for that country, indicating that 
competition has driven the rate closer to cost-based levels. Though 
some routes are still subject to the anti-competitive effects of 
foreign monopolist providers and government regulation, for the most 
part U.S.-international routes are competitive. In a recent 
presentation to the Expert Group on International Telecommunication 
Regulations, International Telecommunication Union (ITU), the United 
States noted that ``[a]ccording to the ITU, a clear majority of 
countries in all six ITU regions have competitive markets covering 
elements that are essential to the provision of international 
telecommunication services--domestic fixed long-distance, mobile, 
leased lines, and international gateways. For example, according to 
ITU's 2015 ICTEYE, a majority of countries have various levels of 
competitive markets in domestic and international long distance 
services and more than 75 percent of ITU Member States have competitive 
international gateways and leased line markets.'' This is due to 
relaxed government regulations, entry by new carriers, entry by 
existing incumbents into other countries' markets, technological 
developments that have enhanced ease of entry, and, perhaps most 
significantly for the future, the development of VoIP-based 
alternatives to traditional international switched services, such as 
Skype, FaceTime, Viber, or WhatsApp. Attempts to raise settlement rates 
by a foreign carrier, cartel, or government

[[Page 18093]]

can be countered by carriers using our benchmark complaint process, or 
by consumers switching to VoIP-based calling services, many of which 
are free. Although the traffic and revenue data have been useful for 
those times when we have investigated anticompetitive behavior on 
certain routes, these have been relatively infrequent in recent years, 
for example, on the U.S.-Fiji route (2013 to present), U.S.-Pakistan 
route (2013-2016), and U.S.-Tonga route (2009 to present). Moreover, we 
can and do request traffic and revenue information from carriers when a 
carrier complains of anticompetitive conduct by a foreign carrier or 
government on a specific route. The Commission has broad authority to 
investigate possible anti-competitive activities on U.S.-international 
routes.
    15. In eliminating the Traffic and Revenue Reports, is there data 
and information that the Commission would not be able to obtain to 
address instances of anticompetitive conduct on a U.S.-international 
route that adversely affects U.S. consumers or U.S. carriers? How could 
the Commission ascertain which facilities-based carriers have 
termination arrangements on a particular U.S.-international route in 
the absence of reported traffic and revenue data? We seek comment on 
whether there are less burdensome alternatives for carriers to provide 
the Commission with information it needs to protect U.S. consumers and 
carriers. There are also international routes which are not fully 
competitive and on which the settlement rate is still above the 
benchmark rate. For example, according to 2014 data on calling to 
foreign fixed-line networks, there are 48 above-benchmark routes that 
constitute approximately 1 percent of total fixed minutes and 21 
percent of total fixed U.S. settlement payouts worldwide. We seek 
comment on whether the Commission should continue to obtain information 
regarding above-benchmark rates. If so, what information should the 
Commission continue to require? In addition, for those commenters 
opposed to eliminating these reporting requirements, we seek comment on 
how they can be further streamlined and whether the Commission should 
sunset some or all of the provisions. For instance, requiring only 
route-by-route data from facilities-based carriers and eliminating the 
filing requirement for resale, private line, and miscellaneous services 
would greatly reduce the overall industry burden and would exempt over 
1,800 entities from filing Traffic and Revenue Reports. We seek comment 
on all the issues raised and solicit additional feedback on any issues 
we should consider with regard to eliminating the Traffic and Revenue 
Reports.
    16. Circuit Capacity Reports. At this time, we believe that 
retaining the Circuit Capacity Reports might be warranted because the 
benefits appear to exceed the costs of collecting this data. We seek 
comment on our analysis and on ways to further streamline our 
requirements to minimize the burden on filers while ensuring the 
Commission receives the information it needs to meet its statutory 
responsibilities. We propose to delete section 43.62 of the 
Commission's rules, which contains both annual Traffic and Revenue 
Reports and the Circuit Capacity Reports, and place the Circuit 
Capacity Reports in section 43.82 of the Commission's rules.
    17. We seek comment on the burden imposed by our circuit capacity 
reporting requirements. While the Commission does not have firm numbers 
on the costs to industry to prepare and submit the reports, we have 
developed estimates of the burdens. These estimates have been derived 
by applying the number of circuit capacity filings in 2016 to the 
burden estimates in the Paperwork Reduction Act review process for the 
annual Traffic and Revenue Reports and Circuit Capacity Reports. In 
2016, 91 entities filed data regarding their circuits as of December 
31, 2015. Thirty-five reports were filed for terrestrial and satellite 
world total circuits; 30 cable operator reports were filed; and 72 
capacity holder reports were filed. In 2014, the Commission estimated 
that filers spend one hour preparing and filing the registration form; 
one hour preparing and filing world total terrestrial and/or satellite 
circuits; two hours preparing and submitting the cable operators 
report; and 10 hours preparing and filing the cable capacity holders 
report. In total, we estimate that industry spent 906 hours preparing 
and submitting the data for the 2015 annual Circuit Capacity Reports. 
We estimate that Commission staff will spend 372 hours reviewing and 
publishing the data at a total cost of $22,280. We seek comment on 
these estimations and ask commenters to provide us with the cost of 
preparing and submitting the Circuit Capacity Reports. In particular, 
we seek comment on the actual time spent to produce the data and ask 
commenters to provide us with an average wage rate.
    18. Although the value of the Circuit Capacity Reports is less than 
it once was with the advent of competition throughout the international 
marketplace, we believe the reports still retain significant value. For 
one, the Circuit Capacity Reports give the agency a clear understanding 
of which operators have deployed what facilities where--the prime 
information needed for any analysis of facilities-based competition. 
For another, the Circuit Capacity Reports are used by the Commission 
and the national security agencies to understand how to protect and 
secure this critical international infrastructure. For yet another, the 
Commission relies on these reports to carry out its statutory 
obligation to assess regulatory fees on international bearer circuits. 
We believe that these benefits outweigh the costs of this information 
collection. We seek comment on this analysis, and how the benefits of 
the Circuit Capacity Reports can best be quantified.
    19. We also seek comment on ways to streamline or improve our 
reporting requirements. Have there have been changes in the 
international transport markets over the past few years that 
necessitate a reexamination of the type of information we collect, 
especially any changes in the submarine cable markets? How should we 
modify the collection in a manner that would still allow the Commission 
to meet its obligations? How would the cost benefit analysis change 
with the proposed modifications? Should we collect different 
information that would minimize burdens on filers while still providing 
value to the public, industry, and the Commission? We recognize that 
the data are used to assess regulatory fees, and seek comment on 
whether we should require filers to submit, for example, the data at 
the same time as the fee, rather than as a prelude to the fee. What 
other ways can the Commission minimize burdens on filers? What, if any, 
alternative or substitutes for the circuit capacity data, in particular 
the submarine cable data, are available from commercial sources? If 
data are available from commercial sources, are there limitations on 
the Commission's use of that data? We seek comment on this and whether 
there are alternative lower cost means of acquiring circuit capacity 
data. We also seek comment on whether we could eliminate the Circuit 
Capacity Reports, and if so how the Commission could continue to 
perform the functions that the circuit data enable.
    20. We also seek input on two issues that have become apparent with 
the most recent filing of Circuit Capacity Reports. First, for certain 
individual cables, we have observed a discrepancy between the capacity 
reported on the cable operators report and the capacity reported on the 
cable capacity holders

[[Page 18094]]

report. For example, occasionally, we find that the cable capacity 
holders report has higher capacity numbers than the cable operator 
report for the same cable. In those instances, Commission staff will 
contact the filers concerning the inconsistencies. What is the cause of 
such inconsistencies, and how can we best address them?
    21. Second, on the cable capacity holders report, filers are asked 
to report capacity acquired and relinquished via indefeasible rights-
of-use (IRUs) or inter-carrier leaseholds (ICLs) only in those cases 
where such transactions are with another reporting entity. Thus, for 
each entry of capacity acquired by IRU or ICL, there should be a 
corresponding entry of capacity relinquished; however, this has 
generally not been the case. Should we address this by clarifying the 
filing instructions? Or should we change the instructions so that all 
IRU and ICL transactions must be reported, regardless of whether the 
other party is also a reporting party?
    22. As part of the changes adopted in 2013, filers are allowed to 
check a box on the registration form to request confidentiality for 
their data. In the past, the Commission has published information on 
the current and planned capacity of individual U.S.-international 
submarine cables. Several cable operators have recently requested 
confidential treatment for their cable operator data. To minimize 
burdens, we seek comment on whether, for example, in the future the 
Commission should publish such data on a consolidated regional (and not 
cable-specific) basis. We seek comment on whether releasing only 
regional data to the public, without identifying individual cable 
operators, will affect the usefulness of the Circuit Capacity Reports, 
and whether this practice would address concerns operators have 
regarding the confidentiality of data submitted in such reports. We 
note that the Commission would still have the information on a cable-
by-cable basis.
    23. Finally, we propose a change to the confidentiality rule for 
circuit capacity to clarify that requests for confidential treatment 
will be consistent with Section 0.459 of the Commission's rules, and 
seek comment on this proposal.
    24. Ex Parte Rules. The proceeding this NPRM initiates shall be 
treated as a ``permit-but-disclose'' proceeding in accordance with the 
Commission's ex parte rules. Persons making ex parte presentations must 
file a copy of any written presentation or a memorandum summarizing any 
oral presentation within two business days after the presentation 
(unless a different deadline applicable to the Sunshine period 
applies). Persons making oral ex parte presentations are reminded that 
memoranda summarizing the presentation must (1) list all persons 
attending or otherwise participating in the meeting at which the ex 
parte presentation was made, and (2) summarize all data presented and 
arguments made during the presentation. If the presentation consisted 
in whole or in part of the presentation of data or arguments already 
reflected in the presenter's written comments, memoranda or other 
filings in the proceeding, the presenter may provide citations to such 
data or arguments in his or her prior comments, memoranda, or other 
filings (specifying the relevant page and/or paragraph numbers where 
such data or arguments can be found) in lieu of summarizing them in the 
memorandum. Documents shown or given to Commission staff during ex 
parte meetings are deemed to be written ex parte presentations and must 
be filed consistent with Section 1.1206(b) of the Commission's rules. 
In proceedings governed by Section 1.49(f) of the Commission's rules or 
for which the Commission has made available a method of electronic 
filing, written ex parte presentations and memoranda summarizing oral 
ex parte presentations, and all attachments thereto, must be filed 
through the electronic comment filing system available for that 
proceeding, and must be filed in their native format (e.g., .doc, .xml, 
.ppt, searchable .pdf). Participants in this proceeding should 
familiarize themselves with the Commission's ex parte rules.
    25. Paperwork Reduction Act. This document contains proposed new 
and modified information collection requirements. The Commission, as a 
part of its continuing effort to reduce paperwork burdens, invites the 
general public and the Office of Management and Budget to comment on 
the information collection requirements contained in this document, as 
required by the Paperwork Reduction Act of 1995, Public Law 104-13. 
Public and agency comments are due June 16, 2017. 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; (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; and (e) 
way to further reduce the information collection burden on small 
business concerns with fewer than 25 employees. In addition, pursuant 
to the Small Business Paperwork Relief Act of 2002, Public Law 107-198, 
see 44 U.S.C. 3506(c)(4), we seek specific comment on how we might 
``further reduce the information collection burden for small business 
concerns with fewer than 25 employees.''
    26. Statement of Authority. The proposed action is authorized under 
Sections 1, 4(i), 4(j), 11, 201-205, 214, 219-220, 303(r), 309, and 403 
of the Communications Act as amended, 47 U.S.C. 151, 154(i), 154(j), 
161, 201-205, 214, 219-220, 303(r), 309, and 403, and the Cable Landing 
License Act of 1921, 47 U.S.C. 34-39, and 3 U.S.C. 301.

Initial Regulatory Flexibility Act Analysis

    27. As required by the Regulatory Flexibility Act (RFA), the 
Commission has prepared this Initial Regulatory Flexibility Analysis 
(IRFA) of the possible significant economic impact on small entities by 
the policies and rules proposed in this Notice of Proposed Rule Making 
(NPRM). We request written public comments on this IRFA. Commenters 
must identify their comments as responses to the IRFA and must file the 
comments by the deadlines provided in this NPRM. The Commission will 
send a copy of the NPRM, including this IRFA, to the Chief Counsel for 
Advocacy of the Small Business Administration.
    28. The Commission initiated this NPRM to assess the federal need 
for the international reporting requirements set forth in section 43.62 
of the Commission's rules. On November 3, 2016, the Commission released 
a Public Notice seeking comment on the 2016 biennial review of our 
telecommunications regulations pursuant to section 11 of the 
Communications Act of 1934, as amended (the Act). Section 11 requires 
the Commission to (1) review biennially its regulations ``that apply to 
the operations or activities of any provider of telecommunications 
service,'' and (2) ``determine whether any such regulation is no longer 
necessary in the public interest as the result of meaningful economic 
competition between providers of such service.'' Section 11 directs the 
Commission to repeal or modify any regulation that it finds are no 
longer in the public interest. While the Commission streamlined and 
modernized the Part 43 international reporting requirements in 2013, 
several

[[Page 18095]]

parties recommend that we further streamline or eliminate these rules.
    29. The objectives of this proceeding are to eliminate, further 
streamline, or modify the current traffic and revenue reporting 
requirements and further streamline or modify circuit capacity 
reporting requirements that apply to carriers providing international 
services pursuant to section 43.62 of the Commission's rules. 
Specifically, the Commission proposes to eliminate the annual Traffic 
and Revenue Reports, and seeks comment on ways to further streamline 
the annual Circuit Capacity Reports. After reviewing the record in this 
biennial review proceeding, and based on our own understanding of the 
competitive nature of the international services sector, we believe 
that the international traffic and revenue data collection is no longer 
necessary, and we propose to eliminate this reporting requirement. We 
recognize that there may be occasions when we need international 
services market information, and seek comment on how to obtain this 
information in the most cost effective and least burdensome way. With 
respect to the annual Circuit Capacity Reports, we believe they may 
warrant retention, and do not propose their elimination. We do, 
however, explore whether there are ways we could further streamline or 
modify this data collection while meeting our statutory obligations.
    30. Currently, section 43.62(b) of the Commission's rules requires 
providers of international services to report annually their traffic 
and revenue for international voice services, international 
miscellaneous services, and international common carrier private lines. 
Section 43.62(a) of the Commission's rules requires providers of 
international services to report annually submarine cable, satellite, 
and terrestrial capacity between the United States and foreign points.
    31. 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 proposed rules, 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. Pursuant to the RFA, the statutory definition of a small business 
applies ``unless an agency, after consultation with the Office of 
Advocacy of the Small Business Administration and after opportunity for 
public comment, establishes one or more definitions of such term which 
are appropriate to the activities of the agency and publishes such 
definition(s) in the Federal Register.'' 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).
    32. The proposals in the NPRM apply to entities providing 
international common carrier services pursuant to section 214 of the 
Act; entities providing international wireless common carrier services 
under section 309 of the Act; entities providing 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. The Commission has not developed a small business size 
standard directed specifically toward these entities. As described 
below, such entities fit within larger categories for which the SBA has 
developed size standards.
    33. The proposals in the NPRM apply to a mixture of both large and 
small entities. The Commission has not developed a small business size 
standard directed specifically toward these entities. However, as 
described below, these entities fit into larger categories for which 
the SBA has developed size standards that provide these facilities or 
services.
    1. Facilities-based Carriers.
    2. IMTS Resale Providers.
    3. Wireless Carriers and Service Providers.
    4. Wireless Telecommunications Carriers (except Satellite).
    5. Wireless Communications Services.
    6. Providers of Interconnected VoIP services.
    7. Spot Market Operators.
    8. Providers of International Telecommunications Transmission 
Facilities.
    9. Satellite Telecommunications Providers.
    10. Operators of Non-Common Carrier Undersea Cable Systems.
    11. Incumbent Local Exchange Carriers.
    34. The NPRM proposes a number of rule changes that would affect 
reporting, recordkeeping and other compliance requirements for entities 
providing international common carrier services pursuant to section 214 
of the Communications Act; entities providing international wireless 
common carrier services under Section 309 of the Act; entities 
providing 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. The NPRM proposes to eliminate, 
further streamline, or modify the current international reporting 
requirements to reduce the burdens for both small and large carriers. 
Specifically, the NPRM proposes to eliminate the annual Traffic and 
Revenue Reports, and seeks comment on ways to further streamline the 
Circuit Capacity Reports. As a result, the proposals in the NPRM will 
be financially beneficial and not impose any significant economic 
burdens on small carriers.
    35. 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 rules for such small entities; (3) the 
use of performance rather than design standards; and (4) an exemption 
from coverage of the rule, or any part thereof, for such small 
entities.''
    36. In this NPRM, the proposed changes in the international 
reporting requirements would lessen the burden on carriers, including 
small entities. We propose to eliminate the annual Traffic and Revenue 
Reports, and seek comment on ways to further streamline the Circuit 
Capacity Reports. After reviewing the record in this biennial review 
proceeding, and based on our own understanding of the competitive 
nature of the international services sector, we believe that the 
international traffic and revenue data collection is no longer 
necessary, and we propose to eliminate this reporting requirement. We 
recognize that there may be occasions when we need international 
services market information, and seek comment on how to obtain this 
information in the most cost effective and least burdensome way. We are 
also considering alternatives that would provide the Commission with 
important information for fulfilling its statutory obligations but 
would reduce the burdens on small businesses. With respect to the 
annual Circuit Capacity Reports, we believe they may warrant retention, 
and do not propose their elimination. We do, however, explore whether 
there are ways we could further streamline or modify this data 
collection while meeting our statutory obligations.
    37. The NPRM seeks comment from all interested parties. The 
Commission

[[Page 18096]]

is aware that some of the proposals under consideration may impact 
small entities. Small entities are encouraged to bring to the 
Commission's attention any specific concerns they may have with the 
proposals outlined in the NPRM.
    38. The Commission expects to consider the economic impact on small 
entities, as identified in comments filed in response to the NPRM, in 
reaching its final conclusions and taking action in this proceeding.

List of Subjects

47 CFR Part 43

    Communications common carriers, Reporting and recordkeeping 
requirements, Telephone.

47 CFR Part 63

    Communications common carriers, Reporting and recordkeeping 
requirements, Telephone.

Katura Jackson,
Federal Register Liaison Officer, Office of the Secretary.

Proposed Rules

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

PART 43--REPORTS OF COMMUNICATION COMMON CARRIERS, PROVIDERS OF 
INTERNATIONAL SERVICES AND CERTAIN AFFILIATES

0
1. The authority citation for Part 43 is revised to read as follows:

    Authority:  47 U.S.C. 154; Telecommunications Act of 1996; Pub. 
Law 104-104, sec. 402(b)(2)(B), (c), 110 Stat. 56 (1996) as amended 
unless otherwise noted. 47 U.S.C. 211, 219, 220, as amended; Cable 
Landing License Act of 1921, 47 U.S.C. 34-39.


Sec.  43.62   [Removed and Reserved]

0
2. Section 43.62 is removed and reserved.
0
3. Add Sec.  43.82 to read as follows:


Sec.  43.82  Circuit Capacity Reports.

    (a) Not later than March 31 of each year:
    (1) Satellite and Terrestrial Circuits. Each facilities-based 
common carrier shall file a report showing its active common carrier 
circuits between the United States and any foreign point as of December 
31 of the preceding calendar year in any terrestrial or satellite 
facility for the provision of service to an end user or resale carrier, 
which includes active circuits used by themselves or their affiliates. 
Each non-common carrier satellite licensee shall file a report showing 
its active circuits between the United States and any foreign point as 
of December 31 of the preceding calendar year sold or leased to any 
customer, including themselves or their affiliates, other than a 
carrier authorized by the Commission to provide U.S. international 
common carrier services.
    (2) International Submarine Cable Capacity. (i) The licensee(s) of 
a submarine cable between the United States and any foreign point shall 
file a report showing the capacity of the submarine cable as of 
December 31 of the preceding calendar year. The licensee(s) shall also 
file a report showing the planned capacity of the submarine cable (the 
intended capacity of the submarine cable two years from December 31 of 
the preceding calendar year). Only one cable landing licensee shall 
file the capacity data for each submarine cable. For cables with more 
than one licensee, the licensees shall determine which licensee will 
file the reports.
    (ii) Each cable landing licensee and common carrier shall file a 
report showing its capacity on submarine cables between the United 
States and any foreign point as of December 31 of the preceding 
calendar year.

    Note to Paragraph (a): United States is defined in Section 3 of 
the Communications Act of 1934, as amended, 47 U.S.C. 153.

    (b) A Registration Form, containing information about the filer, 
such as address, phone number, email address, etc., shall be filed with 
each report. The Registration Form shall include a certification 
enabling the filer to check a box to indicate that the filer requests 
that its circuit capacity data be treated as confidential consistent 
with Section 0.459(b) of the Commission's rules.
    (c) Filing Manual. Authority is delegated to the Chief, 
International Bureau to prepare instructions and reporting requirements 
for the filing of these reports prepared and published as a Filing 
Manual. The information required under this Section shall be furnished 
in conformance with the instructions and reporting requirements in the 
Filing Manual.

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

0
4. 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.

0
5. Amend Sec.  63.10 by revising paragraph (c)(2) to read as follows:


Sec.  63.10  Regulatory classification of U.S. international carriers.

* * * * *
    (c) * * *
    (2) File quarterly reports on traffic and revenue within 90 days 
from the end of each calendar quarter.
* * * * *
0
6. Amend Sec.  63.21 by removing and reserving paragraph (d) to read as 
follows:


Sec.  63.21  Conditions applicable to all international Section 214 
authorizations.

    (d) Reserved.
0
7. Amend Sec.  63.22 by revising paragraph (e) to read as follows:


Sec.  63.22   Facilities-based international common carriers.

* * * * *
    (e) The carrier shall file annual international circuit capacity 
reports as required by Sec.  43.82 of this chapter.
* * * * *
[FR Doc. 2017-07547 Filed 4-14-17; 8:45 am]
 BILLING CODE 6712-01-P