[Federal Register Volume 82, Number 202 (Friday, October 20, 2017)]
[Rules and Regulations]
[Pages 48774-48778]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-22770]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 36, 42, 54, 63, and 64

[WC Docket No. 15-33; FCC 17-112]


Modernizing Common Carrier Rules

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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[[Page 48775]]

SUMMARY: In this document, the Federal Communications Commission 
(Commission) adopted a Report and Order that eliminates certain rules 
from which the Commission has granted unconditional forbearance for all 
carriers, and eliminates references to telegraph service from certain 
sections of the Commission's rules. The Report and Order updates our 
rules to remove outmoded regulations from the Code of Federal 
Regulations (CFR) that no longer reflect current requirements or 
technology. In so doing, we further our goals of reducing regulatory 
burdens, eliminating unnecessary rule provisions, and making the agency 
as efficient and effective as possible.

DATES: Effective November 20, 2017.

FOR FURTHER INFORMATION CONTACT: Wireline Competition Bureau, 
Competition Policy Division, Alex Johns, at (202) 418-1167, 
[email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order (R&O) in WC Docket No. 15-33, adopted September 5, 2017 and 
released September 8, 2017. The full text of this document is available 
for public inspection during regular business hours in the FCC 
Reference Information Center, Portals II, 445 12th Street SW., Room CY-
A257, Washington, DC 20554. It is available on the Commission's Web 
site at http://transition.fcc.gov/Daily_Releases/Daily_Business/2017/db0908/FCC-17-112A1.pdf.

I. Introduction

    1. In the R&O, we update our rules to remove outmoded regulations 
from the Code of Federal Regulations (CFR) that no longer reflect 
current requirements or technology. Specifically, we eliminate certain 
rules from which the Commission has granted unconditional forbearance 
for all carriers, and we eliminate references to telegraph service from 
certain sections of the Commission's rules. In so doing, we further our 
goals of reducing regulatory burdens, eliminating unnecessary rule 
provisions, and making the agency as efficient and effective as 
possible.
    2. The R&O acts on a Notice of Proposed Rulemaking (NPRM) which 
sought comment on the modifications we adopt here. The NPRM followed 
(1) two orders adopted in 2013 that, in response to a petition filed by 
USTelecom, granted forbearance from 126 legacy wireline regulations; 
and (2) the Process Reform Report, a Commission staff report that 
recommended eliminating or streamlining rules that are no longer 
necessary due to marketplace or technology changes. No comments were 
filed in response to the NPRM.

II. Discussion

A. Deleting Rules From Which the Commission Granted Forbearance in the 
2013 USTelecom Forbearance Orders

    3. In many instances in the 2013 USTelecom Forbearance Orders, the 
Commission granted unconditional forbearance from a requirement, but 
did not alter the text of the codified rule or remove the rule from the 
CFR. Thus, the rules appear in the CFR even though the Commission has 
stated that it will forbear from applying such rules. Absent additional 
research, a carrier or consumer might mistakenly believe the 
regulations are still in effect. Therefore, deleting the rules 
identified below, for which the Commission has granted unconditional 
forbearance, clarifies carriers' regulatory obligations and ensures 
that the CFR accurately reflects the Commission's actions with respect 
to those rules.
    4. Specifically, we delete the following CFR provisions from which 
the Commission has forborne: (1) Sections 42.4, 42.5, and 42.7, which 
required carriers to preserve certain records; (2) section 64.1, which 
governed traffic damage claims for carriers engaged in radio-telegraph, 
wire-telegraph, or ocean-cable service; (3) section 64.301, which 
required carriers to provide communications services to foreign 
governments for international communications; (4) section 64.501, which 
governed telephone companies' obligations when recording telephone 
conversations; (5) section 64.804(c)-(g), which governed a carrier's 
recordkeeping and other obligations when it extended unsecured credit 
for communications services to candidates for federal office; and (6) 
section 64.5001(a)-(c)(2), and (c)(4), which imposed certain reporting 
and certification requirements on prepaid calling card providers.

B. Other Rules and Requirements Related to Telegraph Service

    5. In light of the evolution of technology over many decades away 
from the use of telegraphs, we find that the references to telegraph 
service in the rules discussed below are unnecessary and should be 
deleted. We also grant forbearance from the application of all exit 
regulation pursuant to section 214(a) of the Communications Act, as 
amended (the Act), to telegraph service.
    6. Section 36.126 of the Separations Rules. Jurisdictional 
separations is the process by which incumbent local exchange carriers 
(LECs) apportion regulated costs between intrastate and interstate 
jurisdictions. As part of this process, section 36.126 identifies 
equipment that is considered ``Circuit equipment--Category 4.'' Section 
36.126 lists examples of such equipment, including ``telegraph system 
terminals,'' ``telegraph repeaters,'' certain equipment used for 
``telegraph . . . testing,'' and ``telegraph carrier terminals.'' To 
the extent that this equipment is still used, it remains subject to 
section 36.126, but we delete these terms from the examples provided 
throughout section 36.126 and we delete the reference to ``telegraph 
grade private line services'' in section 36.126(e)(3)(iii) to modernize 
our rules to better reflect today's marketplace.
    7. Section 54.706(a)(13) of the Universal Service Rules. Section 
54.706(a) requires providers of interstate telecommunications services 
to contribute to the universal service fund, and subparagraph (a)(13) 
lists ``telegraph'' as an illustrative example of interstate 
telecommunications. No entities filing FCC Form 499-A in the past five 
years indicated that they provide telegraph service, and we are not 
aware of any interstate telegraph service providers today. Nor did any 
entities file comments or objections in response to this proposal in 
the NPRM. As discussed in the NPRM, telegraph service remains 
theoretically subject to universal service contributions, but it no 
longer warrants inclusion in the list of examples in section 54.706(a). 
We therefore, as proposed, delete the term ``telegraph'' in section 
54.706(a) to update the rule to better reflect today's marketplace.
    8. Section 214(a) Discontinuance Requirement and Part 63 
Discontinuance, Reduction, Outage and Impairment Rules. Under section 
214(a) of the Act, common carriers must obtain Commission approval 
before they discontinue, reduce, or impair service to a community or 
part of a community. To the extent that any carriers still provide 
telegraph service or may do so in the future, we conclude that it is 
not necessary to subject them to a requirement to obtain Commission 
approval before discontinuing, reducing, or impairing such service. We 
thus grant such providers forbearance from the application of this 
statutory requirement to telegraph service. We also grant forbearance 
from the application of the Commission's implementing rules under Part 
63 to telegraph service, and we delete the references to ``telegraph'' 
from those rules.

[[Page 48776]]

    9. Under section 10 of the Act, 47 U.S.C. 160(a), the Commission is 
required to forbear from any statutory provision or regulation if it 
determines that: (1) Enforcement of the regulation is not necessary to 
ensure that the telecommunications carrier's charges, practices, 
classifications, or regulations are just, reasonable, and not unjustly 
or unreasonably discriminatory; (2) enforcement of the regulation is 
not necessary to protect consumers; and (3) forbearance from applying 
such provision or regulation is consistent with the public interest. In 
the NPRM, we stated our intent to exempt telegraph service from all 
exit approval requirements by exercising our forbearance authority. No 
commenters opposed our doing so. In light of market forces and 
technological advances, we conclude that forbearance from the 
application of the section 214(a) discontinuance requirement and the 
Commission's implementing rules to telegraph service is warranted under 
the section 10 criteria. Telegraph service is obsolete, and we find 
that no purpose is served by requiring any remaining (or future) 
providers of telegraph service to file discontinuance applications with 
the Commission. Nor is the public interest served by maintaining 
outdated and unnecessary requirements in our rules or by expending 
future agency resources on the processing of any such applications. To 
the extent that common-carrier telegraph service will ever be offered 
in the future, allowing unregulated discontinuance would promote 
competitive market conditions. Accordingly, we forbear from the 
application of section 214 exit regulation to telegraph service. Having 
thus forborne, we also take the opportunity to delete references to 
telegraph service from our discontinuance rules.

III. Procedural Matters

    10. Paperwork Reduction Act. This document does not contain new or 
modified information collection requirements subject to the Paperwork 
Reduction Act of 1995, Public Law 104-13. In addition, therefore, it 
does not contain any new or modified information collection burden for 
small business concerns with fewer than 25 employees, pursuant to the 
Small Business Paperwork Relief Act of 2002, Public Law 107-198, see 44 
U.S.C. 3506(c)(4).
    11. Final Regulatory Flexibility Certification. The Regulatory 
Flexibility Act of 1980, as amended (RFA), 5 U.S.C. 601-612, requires 
that an initial regulatory flexibility analysis be prepared for notice 
and comment rulemaking proceedings, unless the agency certifies that 
``the rule will not, if promulgated, have a significant economic impact 
on a substantial number of small entities.'' See 5 U.S.C. 605(b). The 
RFA generally defines the term ``small entity'' as having the same 
meaning as the terms ``small business,'' ``small organization,'' and 
``small governmental jurisdiction.'' See 5 U.S.C. 601(6). In addition, 
the term ``small business'' has the same meaning as the term ``small 
business concern'' under the Small Business Act. See 5 U.S.C. 601(3). 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). See 15 U.S.C. 632.
    12. This R&O eliminates certain rules from which the Commission 
granted unconditional forbearance for all carriers three years ago, and 
also eliminates references to telegraph service from certain sections 
of the Commission's rules. As noted in this Report and Order, in the 
2013 USTelecom Forbearance Orders, the Commission granted unconditional 
forbearance from certain requirements, but did not alter the text of 
the codified rule or remove the rule from the CFR. Thus, the rules 
appear in the CFR even though the Commission has stated that it will 
forbear from applying such rules. In addition, a number of wireline 
rule provisions continue to reference telegraph service, which appears 
to have a limited role, at best, in the marketplace.
    13. The Commission is committed to removing unnecessary 
requirements to reflect new technologies and changing market 
conditions. Deleting these rules and references clarifies carriers' 
(including small entities') regulatory obligations and ensures that the 
CFR accurately reflects the Commission's intended approach to those 
rules. Therefore, we certify that the requirements of this Report and 
Order will not have a significant economic impact on a substantial 
number of small entities.
    14. Congressional Review Act. The Commission will send a copy of 
this R&O, including a copy of the Final Regulatory Flexibility 
Certification, in a report to Congress and the Government 
Accountability Office pursuant to the Congressional Review Act, see 5 
U.S.C. 801(a)(1)(A). In addition, the R&O and this final certification 
will be sent to the Chief Counsel for Advocacy of the SBA, and will be 
published in the Federal Register, see 5 U.S.C. 605(b).

IV. Ordering Clauses

    15. Accordingly, it is ordered, pursuant to sections 10, 201, 214, 
218-221, 254, 403, and 410 of the Communications Act of 1934, as 
amended, 47 U.S.C. 160, 201, 214, 218-221, 254, 403, 410, and section 
401 of the Federal Election Campaign Act of 1971, as amended, 52 U.S.C. 
30141, that this Report and Order is adopted.
    16. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Report and Order, including the Final Regulatory 
Flexibility Certification, to the Chief Counsel for Advocacy of the 
Small Business Administration.
    17. It is further ordered that this Report and Order shall be 
effective 30 days after publication of the text or a summary thereof in 
the Federal Register.
    18. It is further ordered that the Commission's rules are hereby 
amended, effective November 20, 2017.
    19. It is further ordered that, should no petitions for 
reconsideration or petitions for judicial review be timely filed, WC 
Docket No. 15-33 shall be terminated and its docket closed.

List of Subjects in 47 CFR Parts 36, 42, 54, 63 and 64

    Communications common carriers, Radio, Reporting and recordkeeping 
requirements, Telecommunications, Telegraph, and Telephone.

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

Final Rules

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR parts 36, 42, 54, 63, and 64 as 
follows:

PART 36--JURISDICTIONAL SEPARATIONS PROCEDURES; STANDARD PROCEDURES 
FOR SEPARATING TELECOMMUNICATIONS PROPERTY COSTS, REVENUES, 
EXPENSES, TAXES AND RESERVES FOR TELECOMMUNICATIONS COMPANIES

0
1. The authority citation for part 36 continues to read as follows:

    Authority:  47 U.S.C. 151, 154(i) and (j), 205, 221(c), 254, 
303(r), 403, 410, and 1302 unless otherwise noted.


0
2. Section 36.126 is amended by revising paragraphs (a)(1) and (2), 
(a)(8), the first and second sentence of

[[Page 48777]]

paragraph (b)(4), and paragraphs (d)(1), (e)(1) and (e)(3)(iii) to read 
as follows:


Sec.  36.126  Circuit equipment--Category 4.

    (a) * * *
    (1) Carrier telephone system terminals.
    (2) Telephone repeaters, termination sets, impedance compensators, 
pulse link repeaters, echo suppressors and other intermediate 
transmission amplification and balancing equipment except that included 
in switchboards.
* * * * *
    (8) Testboards, test desks, repair desks and patch bays, including 
those provided for test and control, and for transmission testing.
    (b) * * *
    (4) In addition, for the purpose of identifying and separating 
property associated with special services, circuit equipment included 
in Categories 4.12 (other than wideband equipment) 4.13 and 4.23 is 
identified as either basic circuit equipment, i.e., equipment that 
performs functions necessary to provide and operate channels suitable 
for voice transmission (telephone grade channels), or special circuit 
equipment, i.e., equipment that is peculiar to special service 
circuits. Carrier telephone terminals and carrier telephone repeaters 
are examples of basic circuit equipment in general use, while audio 
program transmission amplifiers, bridges, monitoring devices and volume 
indicators are examples of special circuit equipment in general use. * 
* *
* * * * *
    (d) * * *
    (1) Interexchange Circuit Equipment Furnished to Another Company 
for Interstate Use--Category 4.21--This category comprises that circuit 
equipment provided for the use of another company as an integral part 
of its interexchange circuit facilities used wholly for interstate 
services. This category includes such circuit equipment as telephone 
carrier terminals and microwave systems used wholly for interstate 
services. The total cost of the circuit equipment in this category for 
the study area is assigned to the interstate operation.
* * * * *
    (e) * * *
    (1) Interexchange Circuit Equipment Furnished to Another Company 
for Interstate Use Category--4.21--This category comprises that circuit 
equipment provided for the use of another company as an integral part 
of its interexchange circuit facilities used wholly for interstate 
services. This category includes such circuit equipment as telephone 
carrier terminals and microwave systems used wholly for interstate 
services. The total cost of the circuit equipment in this category for 
the study area is assigned to the interstate operation.
* * * * *
    (3) * * *
    (iii) The cost of special circuit equipment is segregated among 
private line services based on an analysis of the use of the equipment 
and in accordance with Sec.  36.126(b)(4). The special circuit 
equipment cost assigned to private line services is directly assigned 
to the appropriate operations.
* * * * *

PART 42--PRESERVATION OF RECORDS OF COMMUNICATION COMMON CARRIERS

0
3. The authority citation for part 42 continues to read as follows:

    Authority:  Sec. 4(i), 48 Stat. 1066, as amended, 47 U.S.C. 
154(i). Interprets or applies secs. 219 and 220, 48 Stat. 1077-78, 
47 U.S.C. 219, 220.


Sec.  42.4   [Removed]

0
4. Remove Sec.  42.4.


Sec.  42.5   [Removed]

0
5. Remove Sec.  42.5.


Sec.  42.7   [Removed]

0
6. Remove Sec.  42.7.

PART 54--UNIVERSAL SERVICE

0
7. The authority citation for part 54 continues to read as follows:

    Authority:  47 U.S.C. 151, 154(i), 155, 201, 205, 214, 219, 220, 
254, 303(r), 403, and 1302 unless otherwise noted.


Sec.  54.706   [Amended]

0
8. Section 54.706 is amended by removing and reserving paragraph 
(a)(13).

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
9. 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
10. Section 63.60 is amended by revising paragraph (c) to read as 
follows:


Sec.  63.60  Definitions.

* * * * *
    (c) Emergency discontinuance, reduction, or impairment of service 
means any discontinuance, reduction, or impairment of the service of a 
carrier occasioned by conditions beyond the control of such carrier 
where the original service is not restored or comparable service is not 
established within a reasonable time. For the purpose of this part, a 
reasonable time shall be deemed to be a period not in excess of the 
following: 10 days in the case of public coast stations; and 60 days in 
all other cases.
* * * * *

0
11. Section 63.61 is amended by revising the introductory text to read 
as follows:


Sec.  63.61  Applicability.

    Any carrier subject to the provisions of section 214 of the 
Communications Act of 1934, as amended, proposing to discontinue, 
reduce or impair interstate or foreign telephone service to a 
community, or a part of a community, shall request authority therefor 
by formal application or informal request as specified in the pertinent 
sections of this part:
* * * * *

0
12. Section 63.62 is amended by revising the section heading to read as 
follows:


Sec.  63.62  Type of discontinuance, reduction, or impairment of 
telephone service requiring formal application.

* * * * *


Sec.  63.65   [Amended]

0
13. Section 63.65 is amended by removing and reserving paragraph 
(a)(4).

0
14. Section 63.500 is amended by revising paragraph (g) to read as 
follows:


Sec.  63.500  Contents of applications to dismantle or remove a trunk 
line.

* * * * *
    (g) Name of any other carrier or carriers providing telephone 
service to the community;
* * * * *

0
15. Section 63.501 is amended by revising paragraph (g) to read as 
follows:


Sec.  63.501  Contents of applications to sever physical connection or 
to terminate or suspend interchange of traffic with another carrier.

* * * * *
    (g) Name of any other carrier or carriers providing telephone 
service to the community;
* * * * *

0
16. Section 63.504 is amended by revising paragraph (k) to read as 
follows:

[[Page 48778]]

Sec.  63.504  Contents of applications to close a public toll station 
where no other such toll station of the applicant in the community will 
continue service and where telephone toll service is not otherwise 
available to the public through a telephone exchange connected with the 
toll lines of a carrier.

* * * * *
    (k) Description of the service involved, including a statement of 
the number of toll telephone messages sent-paid and received-collect, 
and the revenues from such traffic, in connection with the service 
proposed to be discontinued for each of the past 6 months; and, if the 
volume of such traffic handled in the area has decreased during recent 
years, the reasons therefor.
* * * * *

PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS

0
17. The authority citation for part 64 continues to read as follows:

    Authority:  47 U.S.C. 154, 254(k), 403(b)(2)(B), (c), Pub. L. 
104-104, 110 Stat. 56. Interpret or apply 47 U.S.C. 201, 218, 222, 
225, 226, 227, 228, 254(k), 276, 616, 620, and the Middle Class Tax 
Relief and Job Creation Act of 2012, Pub. L. 112-96, unless 
otherwise noted.

Subpart A--[Removed and Reserved]

0
18. Remove and reserve subpart A, consisting of Sec.  64.1.

Subpart C--[Removed and Reserved]

0
19. Remove and reserve subpart C, consisting of Sec.  64.301.

Subpart E--[Removed and Reserved]

0
20. Remove and reserve subpart E, consisting of Sec.  64.501.


Sec.  64.804   [Amended]

0
20. Section 64.804 is amended by removing paragraphs (c) through (g).

0
21. Section 64.5001 is revised to read as follows:


Sec.  64.5001  Reporting and certification requirements.

    On a quarterly basis, every prepaid calling card provider must 
submit to the Commission a certification with respect to the prior 
quarter, signed by an officer of the company under penalty of perjury, 
stating that it is making the required Universal Service Fund 
contribution. This provision shall not apply to any prepaid calling 
card provider that has timely filed required annual and quarterly 
Telecommunications Reporting Worksheets, FCC Forms 499-A and 499-Q, 
during the preceding two-year period.

[FR Doc. 2017-22770 Filed 10-19-17; 8:45 am]
 BILLING CODE 6712-01-P