[Federal Register: May 25, 2004 (Volume 69, Number 101)]
[Proposed Rules]
[Page 29676-29681]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25my04-17]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 1, 43 and 63
[IB Docket No. 04-112; FCC No. 04-70]
Reporting Requirements for U.S. Providers of International
Telecommunications Services
AGENCY: Federal Communications Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: This document is a summary of the Notice of Proposed
Rulemaking adopted by the Commission in this proceeding. The Commission
seeks comment on the continued need for traffic and revenue reports and
facilities-use reports and on proposals that simplify and the reports
that carriers must file. The Commission also seeks comment of the
elimination of requirement that international telegraph carriers file
their contracts with their foreign correspondents.
DATES: Comments are due to be filed by July 26, 2004, and reply
comments are due to be filed by August 23, 2004. OMB, the general
public, and other Federal agencies are invited to comment on the
information collection requirements on or before July 26, 2004.
FOR FURTHER INFORMATION CONTACT: David Krech or John Copes, Policy
Division, International Bureau, (202) 418-1460. For information
concerning the information collection(s) contained in this document,
contact Judith B. Herman at 202-418-0214, or via the Internet at
JudithB.Herman@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice
of Proposed Rulemaking in IB Docket No. 04-112, FCC 04-70, adopted
March 24, 2004. The full text of this Commission decision is available
for inspection and copying during normal business hours in the FCC
Reference Center (Room CY-A257), 445 12th Street, SW. Washington, DC
20554. The document is also available for download over the Internet at
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-70.pdf. The
complete text may also be purchased from the Commission's copy
contractor, Qualex International, in person at 445 12th Street, SW.,
Room CY-B402, Washington, DC. 20554, via telephone at (202) 863-2893,
via facsimile at (202) 863-2898, or via e-mail at qualexint@aol.com.
This Notice of Proposed Rulemaking (NPRM) contains proposed new or
modified information collections subject to the Paperwork Reduction Act
of 1995 (PRA), Public Law 104-3. It will be submitted to the Office of
Management and Budget (OMB) for review under section 3507(d) of the
PRA. OMB, the general public, and other Federal agencies are invited to
comment on the modified information collections contained in this
proceeding.
Summary of Notice of Proposed Rulemaking
On March 24, 2004, the Commission adopted a Notice of Proposed
Rulemaking in the Matter of Reporting Requirements for U.S. Providers
of International Telecommunications Services; Amendment of Part 43 of
the Commission's Rule (NPRM). In the NPRM, the Commission undertakes a
comprehensive review of the reporting requirements to which carriers
providing U.S. international services are subject under part 43 of the
rules. The NPRM seeks comment on changes to simplify the reporting
requirements and to ensure the usefulness of the data collected by the
Commission.
The NPRM seeks comment on whether to retain the annual traffic and
revenue reporting requirements. Currently, Sec. 43.61(a) requires
international telecommunications carriers to file annual reports
setting forth their traffic and revenues for each international service
they provide. Section 43.82 of the Commission's rules requires
facilities-based U.S. international telecommunications carriers to file
annual circuit-status reports that detail, as of December 31st each
year, the number of circuits they own or lease to each country they
serve and the services for which they use each such circuit. The NPRM
seeks comment on whether to retain the Sec. 43.53 telegraph carrier
report.
The NPRM tentatively concludes that the Sec. 43.61 traffic and
revenue reports and the Sec. 43.82 circuit-status reports continue to
be needed and proposes to retain them. The NPRM, however, proposes
certain simplifications to lessen the burden on the carries of filing
the reports and, in a few cases, proposes to expand the information
carriers are required to file to make the reports more useful under
current conditions in the international telecommunications market.
The NPRM proposes a number of ways to simplify the Sec. 43.61
traffic and revenue reports and Sec. 43.82 circuit-status report. For
example, the NPRM proposes to eliminate the current requirement in the
annual traffic and revenue report that carriers file the number of
messages they carry to and from the foreign countries they serve,
requiring only that they continue to report the number of minutes they
handle and the amount of revenues associated with those minutes.
Second, the NPRM proposes to eliminate the current requirement that
carriers file traffic and revenue information or circuit-status
information for services they offer between the U.S. Mainland and
offshore U.S. points such as Hawaii and Puerto Rico or traffic carried
between two such offshore U.S. points. Third, the NPRM proposes to
establish a $5 million annual revenue threshold for reporting U.S.
international resale telephone services. That is, U.S. carriers that
provide international telephone service on a resale basis do not have
to file an annual traffic and revenue report unless their annual resale
revenues exceed $5 million. Similarly, the NPRM proposes to implement a
$5 million annual revenue threshold also for ``miscellaneous''
international services, i.e., services other than international
telephone service. The NPRM includes a staff proposal that recommends a
number of ways to simplify the information that international carriers
must report on covered services. The staff proposal is available for
download over the Internet at http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-70A1.pdf
.
The NPRM also seeks comment on the need to retain the Sec.
43.61(b) and Sec. 43.61(c) quarterly traffic and revenue reports. If
the Commission ultimately
[[Page 29677]]
concludes that it should retain the quarterly reports, the
simplifications proposed for the annual traffic and revenue reports
would apply to the retained quarterly reports as well.
The NPRM proposes to require all carriers that own international
transmission facilities to file the annual circuit-status reports. At
present, only common-carrier service providers are required to file
circuit-status information. The NPRM proposes to require owners of non-
common-carrier international transmission facilities also to file.
Since the circuit-status report was adopted, the mix of common-carrier
and non-common-carrier international transmission facilities has
shifted so that currently common-carrier facilities represent less than
10 percent of all international transmission facilities. To keep the
Commission informed about the availability and usage of international
transmission facilities, it will be necessary for it to have
information on both common-carrier and non-common-carrier facilities.
The NPRM also proposes to eliminate the Sec. 43.53 telegraph
carriers reporting requirement. The NPRM notes that international
telegraph services have sharply declined in importance and that no
useful purpose would be served by requiring such carriers to file their
overseas contracts.
Procedural Matters
Initial Paperwork Reduction Act Analysis
This NPRM contained proposed new information collections. The
Commission, as part of its continuing effort to reduce paperwork
burdens, invites the general public and the Office of Management and
Budget (OMB) to comment on the information collection(s) contained in
this NPRM, as required by the Paperwork Reduction Act (PRA) of 1995,
Public Law 104-13. Public and agency comments are due July 26, 2004.
PRA 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; and (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.
OMB Control Number: 3060-0106.
Title: Section 43.61--Reports of Overseas Telecommunications
Traffic.
Form No.: Not Applicable.
Type of Review: Revision of a currently approved collection.
Respondents: Businesses or other for-profit entities.
Number of Respondents: 134.
Estimated Time Per Response: 18 hours.
Frequency of Response: Quarterly, Annual, on occasion.
Total Annual Burden: 2412 hours.
Total Annual Costs: $216,524.
Needs and Uses: The information will be used by the Commission
staff for international planning, facility authorization, monitoring
emerging developments in communications services, analyzing market
structures, tracking the balance of payments in international
communications services, and market analysis purposes. The reported
data enables the Commission to fulfill its regulatory responsibilities.
OMB Control Number: 3060-0572.
Title: Filing Manual for Annual International Circuit Status
Reports.
Form No.: Not Applicable.
Type of Review: Revision of a currently approved collection.
Respondents: Business and other for-profit entities.
Number of Respondents: 138.
Estimated Time Per Response: 11 hours.
Frequency of Response: Annual reporting requirement.
Total Annual Burden: 1,540 hours.
Total Annual Costs: $42,600.
Needs and Uses: The information will enable the Commission to
discharge its obligation to authorize the construction and use of
international common carrier transmission facilities. The information
will be used by the Commission and the industry as to whether an
international common carrier is providing direct or indirect service to
countries and to assess industry trends in the use of international
transmission facilities. The information is extremely valuable because
it is not available from any other source.
Final Regulatory Flexibility Act Analysis
As required by the Regulatory Flexibility Act (RFA), as amended,
the Commission has prepared this Initial Regulatory Flexibility
Analysis (IRFA) of the possible significant economic impact on a
substantial number of small entities by the policies and rules proposed
in this Notice of Proposed Rulemaking (NPRM). (See 5 U.S.C. 603. The
RFA, see 5 U.S.C. 601-612, has been amended by the Small Business
Regulatory Enforcement Fairness Act of 1996 (SBREFA), Pub. L. 104-121,
Title II, 110 Stat. 857 (1996).)
Written public comments are requested on this IRFA. Comments must
be identified as responses to the IRFA and must be filed by the
deadlines for comments on the Notice July 26, 2004. The Commission will
send a copy of the Notice, including this IRFA, to the Chief Counsel
for Advocacy of the Small Business Administration. In addition, the
Notice and IRFA will be published in the Federal Register
A. Need for, and Objectives of, the Proposed Rules
The Commission initiated this comprehensive review of the reporting
requirements imposed on U.S. carriers providing international
telecommunications services. The Commission believes that the proposals
contained in the NPRM will make it easier for carriers, both small and
large, to provide the information required by the rules. In addition,
section 11 of the Telecommunications Act of 1996 directs the Commission
to undertake, in every even-numbered year beginning in 1998, a review
of all regulations issued under the Communications Act of 1934, as
amended.
The objective of this proceeding is to improve the reporting
requirements of Sec. Sec. 43.61 and 43.82 imposed on carriers
providing international telecommunications services. Specifically, the
NPRM proposes to simplify, consolidate, and revise the annual traffic
and revenue reporting requirements and the circuit-status reporting
requirements. Also, the NPRM proposes to eliminate several reporting
requirements.
Currently, Sec. 43.61 requires that all international
telecommunications carriers file an annual report of their traffic and
revenues. In addition, Sec. 43.61 sets forth additional reporting
requirements for specific carriers that meet the criteria set forth in
the rule. Under Sec. 43.82, facilities-based common carriers providing
international telecommunications services must file an annual report on
the status of their circuits. The information derived from the
international revenue and traffic report and circuit-status report is
critical in understanding the international telecommunications market.
These reports are the only source of publicly available information of
this nature.
The information obtained from these reports is used extensively by
the Commission, the industry, other government agencies, and the
public. The Commission uses the information to evaluate applications
for international facilities, track market developments and the
competitiveness of each service and geographical market to formulate
[[Page 29678]]
rules and policies consistent with the public interest, monitor
compliance with those rules and policies, and gauge the competitive
effect of its decisions on the market. The information is used to
ensure compliance with the Commission's international rules and
policies. The information enables the Commission to tailor policies to
respond to the market developments on a particular route. The
Commission also uses the information to identify those routes for which
settlement rates are at a level low enough to permit relief from
certain regulatory requirements, including the prohibition on the use
of private lines for the provision of switched, basic services
(``ISR''). Carriers use the information to track the balance of
payments in international communications services and for market
analysis purposes. Carriers and potential entrants use the information
for, among other things, assessment of market opportunities and to
monitor competition in markets. The Commission, along with other
government agencies, uses the information in merger analyses and
negotiations with foreign countries. In addition, the information
contained in the circuit-stateus report allows the Commission to comply
with the statutory requirements of the Omnibus Budget Reconciliation
Act of 1993.
B. Legal Basis
The NPRM is adopted pursuant to sections 1, 4(i) and (j), 11, 201-
205, 211, 214, 219, 220, 330(r), 309, and 403 of the Communications Act
of 1934 as amended, 47 U.S.C. 151, 154(i), 154(j), 161, 201-205, 211,
214, 219, 220, 303(r), 309, and 403.
C. Description and Estimate of the Number of Small Entities to Which
the Proposals Will Apply
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 proposals, 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. A small business concern is one that: (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).
The proposals in the NPRM apply only to entities providing
international common carrier services pursuant to section 214 of the
Communications Act; entities providing domestic or international
wireless common carrier services under section 309 of the Act; entities
providing common carrier or non-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 on a common
carrier or non-common carrier basis. The Commission has not developed a
definition of small entities applicable to these entities. Therefore,
the applicable definition of small entity is the definition under the
SBA rules applicable to Telecommunications Services (see 13 CFR
121.201, NAICS Code.) According to the SBA definition, wired
telecommunications carriers, cellular and other wireless providers, and
telecommunications resellers would be considered small entities if they
employ 1,500 employees or less. The definition also considers satellite
or other telecommunications providers as small entities if they have
$12.5 million or less in annual receipts. (See 13 CFR 121.201, NAICS
Code at Subsector 517--Telecommunications.)
We have included small incumbent local exchange carriers in this
present RFA analysis. As noted above, a ``small business'' under the
RFA is one that, inter alia, meets the pertinent small business size
standard (e.g., a telephone communications business having 1,500 or
fewer employees), and ``is not dominant in its field of operation.''
The SBA's Office of Advocacy contends that, for RFA purposes, small
incumbent local exchange carriers are not dominant in their field of
operation because any such dominance is not ``national'' in scope. (See
Letter from Jere W. Glover, Chief Counsel for Advocacy, SBA, to William
E. Kennard, Chairman, FCC (May 27, 1999). The Small Business Act
contains a definition of ``small-business concern,'' which the RFA
incorporates into its own definition of ``small business.'' 15 U.S.C.
632(a) (Small Business Act); 5 U.S.C. 601(3) (RFA). SBA regulations
interpret ``small business concern'' to include the concept of
dominance on a national basis. 13 CFR 121.102(b). We have therefore
included small incumbent local exchange carriers in this RFA analysis,
although we emphasize that this RFA action has no effect on Commission
analysis and determinations in other, non-RFA contexts.
The carriers required to file the traffic and revenue and circuit-
status reports are both large and small entities. In the 2001 annual
traffic and revenue report, 625 carriers reported that they provided
international message telephone service (IMTS) on a pure resale basis.
(See FCC, Wireline Competition Bureau, Industry Analysis and Technology
Division, ``2001 International Telecommunications Data'' at page 1,
Statistical Findings (January 2003). FCC Web site location http://www.fcc.gov/wcb/iatd/intl.html.
) Pure resale providers resell the
services of underlying U.S. facilities-based and facilities-resale
carriers. Pure resale service is primarily provided by small
businesses. For example, of the 625 carriers, 277 carriers had revenues
less than $10,000; 482 had revenues less than $500,000; and 513 had
revenues less than $1 million. The report also shows that 52 U.S.
facilities-based and facilities-resale carriers reported that they
billed $10.8 billion for IMTS service, $1.4 billion for private line
services, and $0.2 billion for international telex, telegraph, and
other miscellaneous services. These carriers would be considered large
entities under the SBA definition. (See 13 CFR 121.201, NAICS Code at
Subsector 517--Telecommunications.) According to the 2002 Circuit-
Status Report, 79 U.S. international facility-based carriers filed
information pursuant to Sec. 43.82. (See International Bureau Releases
2002 Year-End Circuit Status Report for U.S. Facilities-Based
International Carriers; Capacity Use Shows Modest Growth, rel. Dec. 24,
2003. The report is available on the FCC Web site at http://www.fcc.gov/ib/pd/pf/csmanual.html.
)
The report does not yield employee or revenue statistics, so it is
impossible for use to determine how many carriers could be considered
small entities. Although it is quite possible that a carrier could
report a small amount of capacity and have significant revenues, we
will consider those carriers small entities at this time. Thus, of the
79 carriers filing the annual circuit-status report for 2002, there
were at least 8 carriers that could be considered small entities
because they did not have any circuits in 2002.
D. Description of Projected Reporting, Recordkeeping, and Other
Compliance Requirements
The NPRM proposes to retain the annual traffic and revenue
reporting requirements and the circuit-status reporting requirements
because the collection and public reporting of this information
continues to be necessary in the public interest. The NPRM, however,
proposes to simplify and clarify the reporting requirements to reduce
the burdens for both small and large carriers. Because carriers
currently are required to file annual traffic and
[[Page 29679]]
revenue and circuit-status reports, the proposals contained in the NPRM
will not impose any significant economic burden on small carriers. The
information contained in the proposed reporting requirements is the
same information that the carriers collect and maintain during the
routine course of business. The NPRM contains a staff recommendation on
the proposed reporting requirements, including eight proposed schedules
that show the specific information that carries would be required to
report and how they would report it. The proposed reporting
requirements are described below. However, because the Commission may
change the reporting proposed in the NPRM based on comments received in
this proceeding, consequently, the schedules would also change.
Schedule 1 contains a proposed summary report that applies to all
entities, both small and large. This report would be a one-page form
that international section 214 authorization holders would be required
to file annually. The generic form would require a carrier to provide
basic information about its international section 214 authorization.
Specifically, the carrier would be required to provide its name, its
Form 499-A identification number, its Commission Registration System
(CORES) identification number, and a list of the international section
214 authorizations that it holds. In addition, the carrier would
provide basic information about the services that it provided the
previous year. Based on the services the responding carriers reported,
the schedule would inform the carrier which other schedules, if any,
the carrier would be required to complete. The schedule would provide
the carriers with information on which of its entities are required to
file, including subsidiaries of the authorization holder that might
need to file separately.
Proposed Schedules 2 and 3 would require carriers to submit
information on IMTS and seek country-by-country traffic and revenue
information. Schedule 2 will require carriers to provide the
information on ``outbound'' IMTS traffic, whereas Schedule 3 will
require carriers to provide the information on ``inbound'' IMTS
traffic. Under Schedule 2, carriers would report, their minutes and
revenues/payouts if the ``source of traffic'' is from end users or
another U.S. carrier and the carrier terminates those minutes with a
foreign carrier, on the spot marked, or self terminates in the foreign
country.
Proposed Schedule 3 would require carriers to report, on a country-
by-country basis, the number of inbound minutes of IMTS carriers
receive from their overseas correspondents and the dollar amounts they
receive for terminating that traffic. Also, carriers would be required
to continue to separate the inbound traffic they receive under the
traditional settlement arrangements from inbound traffic they receive
under all other arrangements, such as ISR, hubbing, etc.
Proposed Schedule 4 would require carries to provide additional
detail on a world total basis for the IMTS minutes and revenues for
traffic billed to U.S. customers and for traffic billed to others.
Carriers would be required to report the minutes of collect calls,
international toll-free calls, country-beyond calls, and country-direct
calls they handle. When reporting this information, carriers would be
required to provide separate data for the minutes they receive from
foreign carriers for traditional IMTS transit traffic, refilled
traffic, and traffic received from spot markets.
Proposed Schedule 5 would require pure resale carriers with over $5
million in revenue from international services to report their U.S.-
customer minutes and revenues separately for U.S. end-user traffic,
traffic handled for other U.S. carriers, and traffic re-originated for
foreign carriers.
Proposed Schedule 6 would require carriers to provide country-by-
country information on their international private-line services.
Carriers would be required to report separately service provided over
facilities they own and service provided over resold circuits. Proposed
Schedule 6 includes a new category called ``Data Services'' to ensure
proper reporting of several new services that carriers have begun to
offer in recent years.
Proposed Schedule 7 would require carriers to provide information
regarding miscellaneous services. Services other than IMTS and private-
line service would be considered miscellaneous services. Carriers would
be required to provide a minimal amount of information on the new
services, such as the name of each service and the total annual
revenues the carriers derived from the service.
Proposed Schedule 8 would require carriers to provide a snapshot of
their active and idle circuits as of December 31st of each year.
Carriers would be required to report their circuit capacity on the
basis of the type of facilities they use to provide service--submarine
cables, satellites, and terrestrial links. Carriers would be required
to report their circuit use in units of 64 Kilobit per second (Kbps)
equivalent circuits.
E. Steps Taken To Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered
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 rule for small entities; (3) the use
of performance, rather than design, standards; and (4) an exemption
from coverage or the rule, or any part thereof, for small entities.''
The NPRM seeks comment on a number of proposals to simplify and
consolidate the reporting requirements for carriers providing
international telecommunications services. The proposals in the NPRM
are designed to reduce the regulatory requirements for both small and
large carriers, while maintaining and enhancing the goals the reports
serve. The Commission will also consider other additional significant
alternatives developed in the record.
The possible change to the reporting requirements with the most
significant impact on small carriers is the proposal to exempt pure
resale carriers with less then $5 million in revenues from
international services the preceding year from filing reports. Based on
the number of carriers filing the annual traffic and revenue report in
2001, the majority of carriers would be considered small carriers. (See
FCC, Wireline Competition Bureau, Industry Analysis and Technology
Divison, ``2001 International Telecommunications Data'' at page 1,
Statistical Findings (January 2003). FCC Web site location http://www.fcc.gov/wcb/iatd/intl.html.
) This proposal would benefit a
substantial number of small entities by relieving them from certain
reporting requirements.
The NPRM proposes to simplify the information that the carriers,
both small and large, must submit for any traffic and revenue reports.
First, the NPRM proposes to eliminate the requirement that carriers
provide information on the number of messages that they carried the
previous year. Second, the NPRM proposes to eliminate the requirement
that carriers use the billing codes set out in the Sec. 43.61 Filing
Manual and the Public Notices. Currently, carriers report international
telephone traffic under 12 different billing codes, and the various
[[Page 29680]]
billing codes have presented recurring problems for carriers filing the
reports as well as those who review the reports. Third, the NPRM
proposes a set of schedules for the reporting of the traffic and
revenue and circuit-status information in lieu of the two filing
manuals that are currently used. The Notice proposes to streamline some
of the reporting categories, which will reduce the reporting
requirements on both small and large entities.
The NPRM proposes to consolidate Sec. 43.61 (traffic and revenue
reporting requirement) and Sec. 43.82 (circuit-status reporting
requirement) into one rule. Consolidating the rules will eliminate the
requirement that carriers file two separate reports--one for traffic
and revenue data and one for circuit-status data. The Notice proposes
that one filing manual be developed that will satisfy the reporting
requirements of the new rule. One consolidated filing manual for both
reports would be less confusing and less time-consuming for both small
and large carriers.
The NPRM also proposes to require carriers to file the report
earlier than currently required in order to improve the timeliness of
the resulting report. In selecting a proposed filing date, the
Commission tried to balance the need for more expeditious filing with
any burden an earlier filing would place on carriers. In addition, with
more timely-filed data, it would be unnecessary for carriers to file
corrected traffic and revenue data. The proposed new filing date
minimizes any burden on the carriers because it does not coincide with
any other reporting requirements. Also, carriers will not be burdened
with filing another report with corrected data.
The NPRM proposes changes in the format under which the carriers
file the reports. The NPRM proposes replacing the current DOS-based
filing procedures with spreadsheet-based reporting thereby allowing
carriers to file their data using a commercial spread sheet program.
This proposal should substantially reduce the burden on all carriers,
both small and large, in preparing their data submissions. Also,
carriers filing schedules that do not require country-by-country data
could easily prepare and submit such information online. This, too,
would substantially reduce the burden on the filing carrier, facilitate
interactive edit checks, and allow data to be automatically loaded into
the Commission's database programs.
The NPRM seeks comment on whether it would significantly speed and
facilitate the submission of data if the Commission were to encourage
or mandate carriers to submit their data electronically. Electronic
filing would lessen the burden of filing the reports for both small and
large carriers. Because carriers maintain the data electronically, it
would be practicable for carriers to submit the data in the same format
rather than convert the data into a different format.
The NPRM proposes a general report that will make it very simple
for a carrier to determine which, if any, reporting requirements are
applicable to the carrier. In addition, this proposal will simplify a
carrier's compliance with other reporting requirements, such as the
Form 499-A.
F. Federal Rules That May Duplicate, Overlap, or Conflict With the
Proposed Rules
None.
Ordering Clauses
Accordingly, pursuant to the authority contained in sections 1,
4(i), 4(j), 11, 201-205, 211, 214, 219, 220, 303(r), 309, and 403 of
the Communications Act of 1934, as amended, 47 U.S.C. Sections 151,
154(i), 154(j), 161, 201-205, 211, 214, 219, 220, 303(r), 309 and 403,
this notice of proposed rulemaking is hereby adopted and comments are
requested as described above.
The Commission's Consumer and Governmental Affairs Bureau,
Reference Information Center, shall send a copy of this notice of
proposed rulemaking, including the Initial Regulatory Flexibility Act
Analysis, to the Chief Counsel for Advocacy of the Small Business
Administration in accordance with section 603(a) of the Regulatory
Flexibility Act, 5 U.S.C. 601 et seq.
List of Subjects in 47 CFR Parts 1, 43 and 63
Communications common carriers, Reporting and recordkeeping
requirements, Telecommunications.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
Rule Changes
For the reasons discussed in the preamble, the Federal
Communications Commission proposes to amend 47 CFR parts 1, 43 and 63
as follows:
PART 1--PRACTICE AND PROCEDURE
1. The authority citation for part 1 continues to read as follows:
Authority: 47 U.S.C. 151, 154(i), 154(j), 155, 225, 303(r), 309
and 325(e).
Sec. 1.789 [Removed]
2. Remove Sec. 1.789.
PART 43--REPORTS OF COMMUNICATION COMMON CARRIERS AND CERTAIN
AFFILIATES
3. The authority citation for part 43 continues to read as follows:
Authority: 47 U.S.C. 154; Telecommunications Act of 1996, Pub.
L.104-104, secs. 402(b)(2)(B), (c), 110 Stat. 56 (1996) as amended
unless otherwise noted. 47 U.S.C. 211, 219, 220 as amended.
Sec. 43.53 [Removed]
4. Remove Sec. 43.53.
5. Section 43.61 is revised to read as follows:
Sec. 43.61 Reporting requirements for U.S. international carriers.
(a) Annual traffic and revenue reports. Each carrier engaged in
providing international telecommunications service between the area
comprising the continental United States, Alaska, Hawaii, and off-shore
U.S. points and any country or point outside that area shall file a
report with the Commissions not later than May 1, of each year showing
traffic and revenue fro international services provided in the
preceding calendar year.
(b) Quarterly traffic reports for facilities-based carriers. (1)
Each common carrier engaged in providing international
telecommunications service between the area comprising the continental
United States, Alaska, Hawaii, and off-shore U.S. points and any
country or point outside that area shall file with the Commission, in
addition to the report required by paragraph (a) of this section,
actual traffic and revenue data for each calendar quarter in which the
carrier's quarterly minutes exceed the corresponding minutes for all
carriers by one or more of the following tests:
(i) The carrier's aggregate minutes of facilities-based or private-
line resale switched telephone traffic for service billed in the United
States are greater than 1.0 percent of the total of such minutes of
international traffic for all U.S. carriers published in the
Commission's most recent Sec. 43.61 annual report of international
telecommunications traffic;
(ii) The carrier's aggregate minutes of facilities-based or
private-line resale switched telephone traffic for service billed
outside the United States are greater than 1.0 percent of the total of
such minutes of international traffic for all U.S. carriers published
in the Commission's most recent Sec. 43.61 annual report of
international telecommunications traffic;
[[Page 29681]]
(iii) The carrier's aggregate minutes of facilities-based or
private-line resale switched telephone traffic for service billed in
the United States for any foreign country are greater than 2.5 percent
of the total of such minutes of international traffic for that country
for all U.S. carriers published in the Commission's most recent Sec.
43.61 annual report of international telecommunications traffic; or
(iv) The carrier's aggregate minutes of facilities-based or
private-line resale switched telephone traffic for service billed
outside the United States for any foreign country are greater than 2.5
percent of the total of such minutes of international traffic for that
country for all U.S. carriers published in the Commission's most recent
Sec. 43.61 annual report of international telecommunications traffic.
(2) Except as provided in this paragraph, the quarterly reports
required by paragraph (b)(1) of this section shall be filed in the same
format as, and in conformance with, the filing procedures for the
annual reports required by paragraph (a) of this section.
(i) Carriers filing quarterly reports shall include in those
reports only their provision of switched, facilities-based telephone
service and switched, private-line resale telephone service.
(ii) The quarterly reports required by paragraph (b)(1) of this
section shall be filed with the Commission no later than April 30 for
the prior January through March quarter; no later than July 31 for the
prior April through June quarter; no later than October 31 for the
prior July through September quarter; and no later than January 31 for
the prior October through December period.
(c) Quarterly Traffic Reports for resale carriers. Each common
carrier engaged in the resale of international switched services that
is affiliated with a foreign carrier that has sufficient market power
on the foreign end of an international route to affect competition
adversely in the U.S. market and that collects settlement payments from
U.S. carriers shall file a quarterly version of the report required in
paragraph (a) of this section for its switched resale services on the
dominant route within 90 days from the end of each calendar quarter.
Commercial Mobile Radio Service (CMRS) carriers, as defined in Sec.
20.9 of this chapter, are not required to file reports pursuant to this
paragraph.
(d) Circuit status reports. Each facilities-based carrier engaged
in providing international telecommunications service between the area
comprising the continental United States, Alaska, Hawaii, and off-shore
U.S. points and any country or point outside that area shall file a
circuit status report with the Commission not later than May 1, each
year showing the status of its circuits used to provide international
services as of December 31, of the preceding calendar year.
(e) Filing manual. The information required under this section
shall be furnished in conformance with the instructions and reporting
requirements prepared under the direction of the Chief, International
Bureau, prepared and published as a filing manual.
(f) Definitions. (1) Two entities are affiliated with each other if
one of them, or any entity that controls one of them, directly or
indirectly owns more than 25 percent of the capital stock of, or
controls, the other one, Also, a U.S. carrier is affiliated with two or
more foreign carriers if the foreign carriers, or entities that control
them, together directly or indirectly own more than 25 percent of the
capital stock of, or control, the U.S. carrier and those foreign
carriers are parties to, or the beneficiaries of, a contractual
relation (e.g., a joint venture or market alliance) affecting the
provision or marketing of international basic telecommunications
services in the United States.
(2) Facilities-based carrier means a carrier that holds an
ownership, indefeasible-right-of-user, or leasehold interest in bare
capacity in the U.S. end of an international facility, regardless of
whether the underlying facility is a common carrier or non-common
carrier submarine cable or a satellite system.
(3) Foreign carrier is defined as any entity that is authorized
within a foreign country to engage in the provision of international
telecommunications services offered to the public in that country
within the meaning of the International Telecommunication Regulations,
see Final Acts of the World Administrative Telegraph and Telephone
Conference, Melbourne, 1988 (WATTC-88), Art. 1, which includes entities
authorized to engage in the provision of domestic telecommunications
services if such carriers have the ability to originate or terminate
telecommunications services to or from points outside their country.
Sec. 43.82 [Removed]
6. Remove Sec. 43.82.
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
7. 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.
Sec. 63.23 [Amended]
8. Section 63.23 is amended by removing paragraph (e) and
redesignating paragraph (f) as paragraph (e).
[FR Doc. 04-10837 Filed 5-24-04; 8:45 am]
BILLING CODE 6712-01-M