[Federal Register Volume 84, Number 49 (Wednesday, March 13, 2019)]
[Rules and Regulations]
[Pages 8994-8997]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-04568]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 3

[IB Docket No. 98-96; FCC 18-186]


1998 Biennial Regulatory Review--Withdrawal of the Commission as 
an Accounting Authority in the Maritime Mobile and Maritime Mobile-
Satellite Radio Services

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Federal Communications Commission 
(``Commission'' or ``FCC'') instructs Commission staff to, within 120 
days, consult with Federal stakeholders, including the United States 
Coast Guard (Coast Guard), and to work with service providers to 
finalize and announce a plan to transition the functions and duties 
performed by the Commission as an accounting authority for those 
customers in the maritime mobile and maritime mobile-satellite radio 
services that have not otherwise designated any such accounting 
authority. In the Second Report and Order, the Commission provides a 
substantial transition period of up to one year following announcement 
of the transition plan to ensure an orderly transfer of the 
Commission's accounting authority duties to private authorities.

DATES: Effective April 12, 2019.

FOR FURTHER INFORMATION CONTACT: Dana Shaffer, Deputy Bureau Chief and 
Chief of Staff, Wireless Telecommunications Bureau, (202) 418-0832, 
email [email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Second 
Report and Order, IB Docket No. 98-96; FCC 18-186, adopted December 18, 
2018 and released December 21, 2018. The full text of this document is 
available for inspection and copying during business hours in the FCC 
Reference Information Center, Portals II, 445 12th Street SW, Room CY-
A257, Washington, DC 20554. Copies may be obtained via the Commission's 
Electronic Comment Filing System by entering the IB docket number 98-96 
and is available on the FCC's website at http://www.fcc.gov.

Synopsis

I. Second Report and Order

    1. In the Second Report and Order, the Commission adopts a proposal 
to transition the functions and duties performed by the FCC as an 
accounting authority. The Commission refers to this default function as 
the accounting authority of last resort, and it finds that the public 
interest would be better served by relying upon private accounting 
authorities to perform the accounting authority of last resort 
function. The Commission notes that such private authorities are 
certified under part 3 of the Commission's rules and operate under the 
Commission's regulatory oversight.
    2. The Commission concludes that the record in the proceeding 
supports a renewed decision to withdraw as the accounting authority of 
last resort and to provide users with a definitive timeframe within 
which to transition to a new accounting authority of their choosing. 
All commenters supported the Commission's proposal to withdraw 
completely as an accounting authority. The unanimous support is a 
change from 1999, and it reflects that, in 2018, not only are there 
sufficient private accounting authorities available to settle accounts, 
but there also has been a significant reduction in reliance on the FCC 
as an accounting authority. Given this reduction in reliance on the FCC 
and the reduced volume of customers who may be affected when the 
Commission withdraws as accounting authority, as well as the presence 
of a functioning market for this service that will mitigate the adverse 
impact of the FCC's withdrawal, the Commission finds that the best 
alternative is for its withdrawal as an accounting authority. The 
Commission continues to believe that it remains the basic 
responsibility of the user, whether a private or governmental entity, 
to designate an accounting authority to handle its calls.
    3. The Commission is not persuaded that it should name COMSAT as 
the default accounting authority of last resort. No party other than 
COMSAT urged the FCC to take such a step; in fact, other commenters, 
notably the Coast Guard, supported the Commission's proposal to require 
users to select a new accounting authority,

[[Page 8995]]

provided the Commission ensures users are given adequate notice and 
time to put in place arrangements with another accounting authority. 
The Commissions finds no record support from users for a wholesale 
transfer of the settlement of the accounts of terminal holders 
currently subscribed to US01 to COMSAT or any other private accounting 
authority. Moreover, Inmarsat adamantly opposes designation of a 
default accounting authority of last resort. Given both the lack of 
record support for developing a formula to spread undesignated messages 
among several private accounting authorities, and the lack of 
accounting authorities coming forward on the record to offer to settle 
accounts for affected users, the Commission finds no basis for 
exploring the option further. The Commission notes, moreover, that one 
option it considered--to allow customers to designate an accounting 
authority on every message in lieu of pre-subscribing to an accounting 
authority--is not technically feasible, because the accounting 
authority is selected by the user when the device is activated for 
service in the first instance, not prior to each call. The Commission 
also states that Inmarsat is the underlying service provider for the 
majority of non-governmental entities who will be impacted by the FCC's 
withdrawal. Reassigning all users to COMSAT as accounting authority was 
not one of the proposals on which the Commission sought comments, and 
the Commission finds no record support from any users for a wholesale 
transfer of the settlement of their accounts to COMSAT or any other 
private accounting authority.
    4. The Commission is not persuaded that there is a compelling need 
to engage in either a comparative selection or procurement process to 
select a new accounting authority of last resort. Given the small 
number of current users of the FCC's accounting authority, the 
availability of numerous private accounting authorities from which to 
choose, and the fact that no new terminals have been activated with the 
FCC as accounting authority in the past five years, the Commission 
finds there is no compelling need to designate a new accounting 
authority of last resort. Moreover, there is little benefit in 
procuring an alternative accounting authority for the few remaining 
terminal holders using the FCC as their accounting authority that would 
outweigh the administrative burden and cost of conducting further 
proceedings to determine how best to select an accounting authority of 
last resort, conducting such selection or procurement process, and then 
continuing to manage whichever vendor is chosen. For the same reasons 
the Commission has decided to withdraw as an accounting authority, it 
finds that it should not then ``re-enter'' by selecting or contracting 
with a private entity to take the FCC's place, when there are private 
accounting authorities--competitive alternatives--from which terminal 
holders may choose their preferred accounting authority. Instead, based 
on the record in the proceeding, the Commission finds that the more 
reasonable approach is to provide ample notice and time to allow users 
to select their preferred accounting authority. The Commission finds 
that this will ensure the continuity of lifesaving maritime 
communications services.
    5. Commenters generally have noted that one year is the minimum 
amount of time that would be required for the Commission to conduct 
outreach and for terminal holders that currently use the Commission as 
their accounting authority to migrate their terminals to a new 
accounting authority of their choice. Given the long pendency of the 
proceeding and the Commission's repeated proposal, from 1998 to 2018, 
to withdraw as an accounting authority, the vast majority of users 
already have effectuated such transition. The Commission notes that, 
for governmental users with large accounts and multiple terminals, such 
transition efforts have been ongoing for some time, even in the absence 
of a specific transition plan or definitive timing; the Commission 
finds that one year is sufficient notice to such users of the need to 
complete the transition of their terminals to a new accounting 
authority, and one year is ample notice to private users of single 
terminals of the need to select a new accounting authority.
    6. The Commission directs its staff to, within 120 days of the 
release of the Second Report and Order, finalize and announce a 
transition and outreach plan of no more than one year from the date of 
announcement, which the Commission finds is sufficient time for 
affected users to contract with an accounting authority of their choice 
and to perform the necessary recommissioning of their terminals. The 
broad outlines of the transition plan shall be as follows: The 
Commission will continue to act as the accounting authority for 
terminals currently subscribed to US01 for one year after the plan is 
announced. After that one-year period, the Commission will stop 
performing the functions of an accounting authority and will formally 
withdraw as an accounting authority; AAIC US01 will be deactivated. At 
any time before the end of the transition period, but no later than the 
last day of the transition period, users that have relied on the 
Commission as an accounting authority will need to affirmatively select 
an accounting authority, contract with such entity as their new 
accounting authority, and reactivate/recommission their terminal(s) 
with the AAIC of their selected accounting authority. A failure to do 
so could render such users unable to transmit maritime communications 
other than distress signals.
    7. Commission staff will work with stakeholders to effectuate the 
transition and facilitate the selection of new accounting authorities 
for terminals currently subscribed to US01. Given the Coast Guard's 
concern regarding Inmarsat-C terminal holders, the Commission also 
directs staff to work with Inmarsat to notify all Inmarsat-C terminal 
holders of the need to select a new accounting authority. The 
Commission further directs staff, when formulating the transition plan, 
to take into account the safety concerns of the Coast Guard, and to 
coordinate with the Coast Guard to ensure that the message to 
potentially affected users is clear and disseminated in multiple ways 
to reach, to the extent feasible, all affected terminal users. The 
outreach plan shall include, at a minimum, direct notification to every 
terminal holder, governmental and non-governmental, that has used the 
FCC as an accounting authority since January 1, 2016. The Commission 
states that because this would capture the past three years of terminal 
use/activity from terminals that have the FCC as their designated 
accounting authority, this should be an adequate length of time to form 
a representative picture of which terminal holders continue to rely on 
the Commission as their accounting authority. Moreover, since any 
terminals not in use in the past three years are more likely to be 
those of infrequent personal users, the outreach that the Commission 
requires as part of the transition plan will also notify all Inmarsat-C 
terminal holders via messaging over the terminal itself, regardless of 
whether the FCC has received billing for such terminal in the past 
three years. The Commission's outreach plan shall also include one or 
more enhanced group call messages to Inmarsat-C terminal holders 
notifying them of the requirement to select a new accounting authority; 
any other feasible direct notification to all Inmarsat-C terminal 
holders in a manner developed collaboratively with Inmarsat and the

[[Page 8996]]

Coast Guard; and broad outreach via public notices and other means to 
provide clear notice to all potentially affected users.
    8. Beyond commenting on the withdrawal of the FCC as accounting 
authority and the associated transition, the Coast Guard asks that the 
FCC set forth precise procedures for mariners to file complaints with 
the FCC should they encounter discriminatory treatment or unreasonably 
high rates from an accounting authority. The Commission notes, however, 
that procedures already exist for the filing of complaints regarding 
any violation of the Commission's rules and/or for a determination of 
whether a practice comports with the Commission's rules, so no new 
procedures need be put in place. Specifically, 47 CFR 3.10(e) states, 
``Applicants [accounting authorities] must offer their services to any 
member of the public making a reasonable request therefor, without 
undue discrimination against any customer or class of customer,'' and 
must charge ``reasonable and non-discriminatory'' fees for service. In 
addition, the Commission believes 47 CFR 3.52 adequately addresses 
procedures for resolving complaints and inquiries regarding accounting 
authorities. The Commission does, however, direct the staff, as part of 
its outreach efforts, to coordinate with the Coast Guard and provide 
guidance to terminal holders regarding how to file complaints and where 
to go for more information on Commission complaint procedures.
    9. Finally, the Commission finds that the code US01 should, after 
deactivation, be retained by the Commission and not reassigned except 
upon review and approval by the Commission. This will allow for the 
potential assignment of the code to another governmental agency, should 
such need arise, and will prevent the code from being reassigned for 
use without the full knowledge of the Commission. Given the historic 
use of this code by various governmental users and potentially 
sensitive information associated with such governmental users, the 
Commission finds that this code should not be made available for 
reassignment to private accounting authorities. The Commission finds 
that protection of the US01 accounting code will reduce confusion and 
prevent the inadvertent provision of confidential or sensitive 
information without the knowledge or consent of terminal holders; 
therefore, it finds continued reservation of this code is in the public 
interest. The Commission instructs staff to take appropriate steps to 
ensure these protections are put in place.

II. Procedural Matters

A. Final Regulatory Flexibility Analysis

    10. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), the Commission prepared and properly published an 
Initial Regulatory Flexibility Analysis (IRFA) of the possible 
significant economic impact on small entities of the proposed policies 
and rules proposed. No written comments were received on the IRFA. 
Thus, the Commission prepared a Final Regulatory Flexibility Analysis 
(FRFA) of the possible significant economic impact on small entities of 
the policies and rules.
1. Need for, and Objectives of, the Rules
    11. In the Second Report and Order, the Commission concludes that 
it will withdraw as an accounting authority in the maritime mobile and 
maritime mobile-satellite radio services. The Commission concludes that 
a 120-day period is appropriate to permit the preparation of a 
transition plan in coordination with the United States Coast Guard and 
industry, and a one-year transition period to implement that plan is 
sufficient to ensure a smooth, non-disruptive transition to private 
accounting authorities.
2. Legal Basis
    12. The Second Report and Order is adopted pursuant to sections 
4(i), 4(j), 11, 201-205 and 303(r) of the Communications Act of 1934, 
as amended, 47 U.S.C. 154(i), 154(j), 161, 201-205 and 303(r).
3. Response to Comments by the Chief Counsel for Advocacy of the Small 
Business Administration
    13. Pursuant to the Small Business Jobs Act of 2010, which amended 
the RFA, the Commission is required to respond to any comments filed by 
the Chief Counsel for Advocacy of the Small Business Administration 
(SBA), and to provide a detailed statement of any change made to the 
proposed rules as a result of those comments.
    14. The Chief Counsel did not file any comments in response to the 
proposed rules in the proceeding.
4. Description and Estimate of the Number of Small Entities to Which 
the Rules Will Apply
    15. The RFA directs agencies to provide a description of, and where 
feasible, an estimate of the number of small entities that may be 
affected by the rules and policies. The RFA generally defines the term 
``small entity'' as having the same meaning as the terms ``small 
business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' In addition, the term ``small business'' has the same 
meaning as the term ``small business concern'' under the Small Business 
Act. A ``small business concern'' is one 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 SBA.
    16. The action taken in the Second Report and Order will transition 
the Commission's accounting authority to one or more entities providing 
account-settlement services for maritime mobile and maritime mobile-
satellite radio services. Small businesses may be able to become 
accounting clearinghouses, as the establishment of such a function does 
not appear to involve high implementation costs. The transition also 
applies to existing maritime mobile and maritime satellite customers 
who have not presubscribed to a private U.S. accounting authority and 
are, therefore, billed through the FCC as the accounting authority of 
last resort. An estimated thirty small entities were billed for traffic 
by the FCC as an accounting authority in 2016. The transition to a new 
accounting authority does not appear to involve high implementation 
costs for such entities.
5. Reporting, Recordkeeping, and Other Compliance Requirements for 
Small Entities
    17. The action taken in the Second Report and Order will not affect 
the existing reporting, recordkeeping, or other compliance requirements 
of those entities already certified and those applying for 
certification as a private accounting authority pursuant to Part 3 of 
the Commission's rules.
6. Steps Taken To Minimize Significant Economic Impact on Small 
Entities and Significant Alternatives Considered
    18. The Commission is transitioning its functions and duties as an 
accounting authority to private accounting authorities. There is 
minimal impact on small entities, and affected small entities will be 
given ample time to effectuate the transition for any terminal for 
which they had prescribed the Commission as the accounting authority. 
No alternatives have been identified that would lessen the economic 
impact on small entities while remaining consistent with the objectives 
of the proceeding. Moreover, the Commission will conduct, in 
coordination with the United States Coast Guard and other stakeholders, 
as appropriate, extensive outreach to

[[Page 8997]]

inform and minimize impact on all affected entities, including small 
entities.

B. Paperwork Reduction Analysis

    19. The Second Report and Order does not contain any new or 
modified information collection requirements subject to the Paperwork 
Reduction Act of 1995 (PRA), Public Law 104-13. In addition, 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.

C. Congressional Review Act

    20. The Commission will send a copy of the Second Report and Order 
in a report to be sent to Congress and the Government Accountability 
Office pursuant to the Congressional Review Act (CRA).

III. Ordering Clauses

    21. It is ordered that pursuant to sections 4(i), 4(j), 11, 201-205 
and 303(r) of the Communications Act of 1934, as amended, 47 U.S.C. 
154(i), 154(j), 161, 201-205 and 303(r), the Second Report and Order is 
adopted.
    22. It is further ordered that the actions taken in the Second 
Report and Order will become effective April 12, 2019.
    23. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of the Second Report and Order, including the Final Regulatory 
Flexibility Analysis to the Chief Counsel for Advocacy of the Small 
Business Administration.
    24. It is further ordered that the Second Report and Order shall be 
sent to Congress and the Government Accountability Office pursuant to 
the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).

Federal Communications Commission.
Marlene Dortch,
Secretary.
[FR Doc. 2019-04568 Filed 3-12-19; 8:45 am]
 BILLING CODE 6712-01-P