[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