[Federal Register Volume 75, Number 154 (Wednesday, August 11, 2010)]
[Proposed Rules]
[Pages 48629-48641]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-19580]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 61 and 64
[WC Docket No. 10-141; FCC 10-127]
Electronic Tariff Filing System (ETFS)
AGENCY: Federal Communications Commission.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: In this document, the Federal Communications Commission
(Commission) seeks comment on extending the electronic tariff filing
requirement for incumbent local exchange carriers to all carriers that
file tariffs and related documents. Additionally, the Commission seeks
comment on the appropriate time frame for implementing this proposed
requirement. The Commission also seeks comment on the proposal that the
Chief of the Wireline Competition Bureau administer the adoption of
this extended electronic filing requirement. Also, the Commission seeks
comment on proposed rule changes to implement mandatory electronic
tariff filing.
DATES: Comments are due on or before September 10, 2010 and reply
comments are due on or before September 27, 2010. Written comments on
the Paperwork Reduction Act proposed information collection
requirements must be submitted by the public, Office of Management and
Budget (OMB), and other interested parties on or before October 12,
2010. If you anticipate that you will be submitting comments, but find
it difficult to do so within the period of time allowed by this notice,
you should advise the contact listed below as soon as possible.
ADDRESSES: You may submit comments, identified by WC Docket No. 10-141
by any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Federal Communications Commission's Web site: http://fjallfoss.fcc.gov/ecfs2/. Follow the instructions for submitting
comments.
People with Disabilities: Contact the FCC to request
reasonable accommodations (accessible format documents, sign language
interpreters, CART, etc.) by e-mail: [email protected] or phone: (202)
418-0530 or TTY: (202) 418-0432.
In addition to filing comments with the Secretary, a copy
of any comments on the Paperwork Reduction Act information collection
requirements contained herein should be submitted to the Federal
Communications Commission via e-mail to [email protected] and to Nicholas A.
Fraser, Office of Management and Budget, via e-mail to [email protected] or via fax at 202-395-5167.
For detailed instructions for submitting comments and additional
information on the rulemaking process, see the SUPPLEMENTARY
INFORMATION section of this document.
FOR FURTHER INFORMATION CONTACT: Pamela Arluk at (202) 418-1520 or
Lynne Hewitt Engledow at (202) 418-1520, Wireline Competition Bureau,
Pricing Policy Division. For additional information concerning the
Paperwork Reduction Act information collection requirements contained
in this document, send an e-mail to [email protected] and to Nicholas A.
Fraser, Office of Management and Budget, [email protected] or via fax at 202-395-5167.
SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's
Notice of Proposed Rulemaking (NPRM) in WC Docket No. 10-141, FCC 10-
127, adopted July 15, 2010, and released July 15, 2010. The complete
text of this document is available for inspection and copying during
normal business hours in the FCC Reference Information Center, Portals
II, 445 12th Street, SW., Room CY-A257, Washington, DC 20554. The
document may also be purchased from the Commission's duplicating
contractor, Best Copy and Printing, Inc., 445 12th Street, SW., Room
CY-B402, Washington, DC 20554, telephone (800) 378-3160 or (202) 863-
2893, facsimile (202) 863-2898, or via the Internet at http://www.bcpiweb.com. It is also available on the Commission's Web site at
http://www.fcc.gov.
Pursuant to Sec. Sec. 1.415 and 1.419 of the Commission's rules,
47 CFR 1.415, 1.419, interested parties may file comments and reply
comments on or before the dates indicated on the first page of this
document. Comments may be filed using: (1) The Commission's Electronic
Comment Filing System (ECFS), (2) the Federal Government's eRulemaking
Portal, or (3) by filing paper copies. See Electronic Filing of
Documents in Rulemaking Proceedings, 63 FR 24121, May 1, 1998.
Electronic Filers: Comments may be filed electronically
using the Internet by accessing the ECFS: http://www.fcc.gov/cgb/ecfs/
or the Federal eRulemaking Portal: http://www.regulations.gov. Filers
should follow the instructions provided on the Web site for submitting
comments.
[cir] For ECFS filers, if multiple docket or rulemaking numbers
appear in the caption of this proceeding, filers must transmit one
electronic copy of the comments for each docket or rulemaking number
referenced in the caption. In completing the transmittal screen, filers
should include their full name, U.S. Postal Service mailing address,
and the applicable docket or rulemaking number. Parties may also submit
an electronic comment by Internet e-mail. To get filing instructions,
filers should send an e-mail to [email protected], and include the following
words in the body of the message, ``get form.'' A sample form and
directions will be sent in response.
Paper Filers: Parties who choose to file by paper must
file an original and four copies of each filing. If more than one
docket or rulemaking number appears in the caption of this proceeding,
filers must submit two additional copies for each additional docket or
rulemaking number.
Filings can be sent by hand or messenger delivery, by commercial
overnight courier, or by first-class or
[[Page 48630]]
overnight U.S. Postal Service mail (although we continue to experience
delays in receiving U.S. Postal Service mail). All filings must be
addressed to the Commission's Secretary, Office of the Secretary,
Federal Communications Commission.
[cir] All hand-delivered or messenger-delivered paper filings for
the Commission's Secretary must be delivered to FCC Headquarters at 445
12th Street, SW., Room TW-A325, Washington, DC 20554. All hand
deliveries must be held together with rubber bands or fasteners. Any
envelopes must be disposed of before entering the building. The filing
hours are Monday through Friday, 8 a.m. to 7 p.m.
[cir] Commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be sent to 9300 East Hampton
Drive, Capitol Heights, MD 20743.
[cir] U.S. Postal Service first-class, Express, and Priority mail
should be addressed to 445 12th Street, SW., Washington, DC 20554.
People with Disabilities: To request materials in accessible
formats for people with disabilities (Braille, large print, electronic
files, audio format), send an e-mail to [email protected] or call the
Consumer & Governmental Affairs Bureau at (202) 418-0530 (voice) or
(202) 418-0432 (TTY). Contact the FCC to request reasonable
accommodations for filing comments (accessible format documents, sign
language interpreters, CART, etc.) by e-mail: [email protected]; phone:
(202) 418-0530 or (202) 418-0432 (TTY).
In addition, one copy of each pleading must be sent to each of the
following:
[cir] The Commission's duplicating contractor, Best Copy and
Printing, Inc, 445 12th Street, SW., Room CY-B402, Washington, DC
20554; Web site: http://www.bcpiweb.com; phone: 1-800-378-3160; and
[cir] Pamela Arluk, Pricing Policy Division, Wireline Competition
Bureau, 445 12th Street, SW., Room 5-A131, Washington, DC 20554; e-
mail: [email protected] or telephone number (202) 418-1520; and
[cir] Lynne Hewitt Engledow, Pricing Policy Division, Wireline
Competition Bureau, 445 12th Street, SW., Room 5-A361, Washington, DC
20554; e-mail: [email protected] or telephone number (202) 418-
1520.
Filings and comments are also available for public inspection and
copying during regular business hours at the FCC Reference Information
Center, Portals II, 445 12th Street, SW., Room CY-A257, Washington, DC
20554. Copies may also be purchased from the Commission's duplicating
contractor, BCPI, 445 12th Street, SW., Room CY-B402, Washington, DC
20554. Customers may contact BCPI through its Web site: http://www.bcpiweb.com, by e-mail at [email protected], by telephone at (202)
488-5300 or (800) 378-3160 (voice), (202) 488-5562 (TTY), or by
facsimile at (202) 488-5563.
Comments and reply comments must include a short and concise
summary of the substantive arguments raised in the pleading. Comments
and reply comments must also comply with Sec. 1.49 and all other
applicable sections of the Commission's rules. We direct all interested
parties to include the name of the filing party and the date of the
filing on each page of their comments and reply comments. All parties
are encouraged to utilize a table of contents, regardless of the length
of their submission. We also strongly encourage parties to track the
organization set forth in the NPRM in order to facilitate our internal
review process.
Initial Paperwork Reduction Act of 1995 Analysis
This document contains proposed information collection
requirements. 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
requirements contained in this document, as required by the Paperwork
Reduction Act of 1995, Public Law 104-13. Public and agency comments
are due October 12, 2010.
Comments on the proposed information collection requirements 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. In
addition, pursuant to the Small Business Paperwork Relief Act of 2002,
Public Law 107-198, see 44 U.S.C. 3506(c)(4), we seek specific comment
on how we might further reduce the information collection burden for
small business concerns with fewer than 25 employees.
OMB Control Number: 3060-XXXX.
Title: Electronic Tariff Filing System (ETFS).
Form Number(s): N/A.
Type of Review: New information collection.
Respondents: Business or other for-profit and not-for-profit
institutions.
Number of Respondents and responses: Estimated 1,500 respondents
and 1,500 responses.
Estimated Time per Response: 1 hour (average time per response).
Obligation to Respond: Required to obtain or retain benefits.
Frequency of Response: Annual and on occasion reporting
requirements.
Total Annual Burden: 1,500 hours.
Total Annual Cost: $150,000.
Privacy Act Impact Assessment: No impact.
Nature of Extent of Confidentiality: The Commission is not
requesting that the respondents submit confidential information to the
FCC. Respondents may, however, request confidential treatment for
information they believe to be confidential under 47 CFR 0.459 of the
Commission's rules.
Needs and Uses: The Commission is requesting review and approval of
a new information collection requiring all tariff filing entities to
use the Federal Communications Commission's Electronic Tariff Filing
System (ETFS) to file their tariffs and related documents.
Currently, incumbent local exchange carriers (LECs) file their
tariffs and associated documents electronically, using ETFS. ETFS has
improved the usefulness of tariff filings for both filers and the
public and made the entire tariff filing process more transparent. By
contrast, competitive LECs currently do not file tariffs and associated
documents electronically. In the Notice of Proposed Rulemaking (NPRM),
in WC Docket No. 10-141, we initiate a rulemaking proceeding to
consider extending the existing electronic filing requirement to all
tariff filing entities. In particular, to create a more open,
transparent and efficient flow of information to the public, we
consider whether the benefits of using the ETFS for incumbent LEC
tariff filings would also be obtained if all tariff filers filed
electronically.
Additionally, the Commission seeks comment on the appropriate time
frame for implementing this proposed requirement. Relevant rule
modifications are also proposed in the NPRM. The Commission also seeks
comment on the proposal that the Chief of the Wireline Competition
Bureau administer the adoption of this extended electronic filing
requirement. We believe such action will benefit the
[[Page 48631]]
public and carriers by creating a central system providing online
access to all carrier tariffs and related documents filed with the
Commission.
I. Introduction
1. Currently, incumbent local exchange carriers (LECs) file their
tariffs and associated documents electronically, using the Electronic
Tariff Filing System (ETFS). ETFS has improved the usefulness of tariff
filings for both filers and the public and made the entire tariff
filing process more transparent. By contrast, competitive LECs do not
file tariffs and associated documents electronically. In this NPRM, we
initiate a rulemaking proceeding to consider extending the existing
electronic filing requirement to all tariff filing entities, consistent
with the public interest. In particular, to create a more open,
transparent and efficient flow of information to the public, we
consider whether the benefits of using the ETFS for incumbent LEC
tariff filings would also be obtained if all tariff filers filed
electronically. As discussed below, we propose rule modifications that
expand the electronic tariff filing requirement to all tariff filers.
We believe such action will benefit the public and carriers by creating
a central system providing online access to all carrier tariffs filed
with the Commission.
II. Background
2. In adopting the Telecommunications Act of 1996 (1996 Act),
Congress sought to establish ``a pro-competitive, de-regulatory
national policy framework'' for the telecommunications industry.
Consistent with that goal, section 402(b)(1)(A)(iii) of the 1996 Act
added section 204(a)(3) to the Communications Act of 1934, as amended,
providing for streamlined tariff filings by local exchange carriers. On
September 6, 1996, in an effort to meet the goals of the 1996 Act, the
Commission released the Tariff Streamlining NPRM, 61 FR 49,987,
September 24, 1996, proposing measures to implement the tariff
streamlining requirements of section 204(a)(3). Among other
suggestions, the Commission proposed requiring LECs to file tariffs
electronically. The Commission also tentatively concluded that
electronic tariff filing would reduce burdens on carriers and the
Commission, facilitate access to tariffs and associated documents by
the public, make all tariff information available to state and other
federal regulators, and facilitate the compilation of aggregate carrier
data for industry analysis purposes.
3. The Commission began implementing the electronic filing of
tariffs on January 31, 1997, when it released the Streamlined Tariff
Order. The Streamlined Tariff Order established rules implementing the
1996 Act's tariff streamlining provisions and also required LECs to
file tariffs and associated documents electronically in accordance with
requirements established by the Common Carrier Bureau (Bureau). On
November 17, 1997, the Bureau made this electronic system, known as the
Electronic Tariff Filing System, available for voluntary filing by
incumbent LECs. The Bureau also announced that the use of ETFS would
become mandatory for all incumbent LECs in 1998.
4. On May 28, 1998, in the ETFS Order, 63 FR 35,539, June 30, 1998,
the Bureau established July 1, 1998, as the date after which incumbent
LECs would be required to use ETFS to file tariffs and associated
documents. The ETFS Order also revised the Commission's rules to
establish other requirements necessary to implement the Commission's
electronic tariff filing program. Specifically, the revised rules
required incumbent LECs to electronically file complete tariff Base
Documents, tariff revisions, applications for special permission,
supporting information, and Tariff Review Plans (TRPs) via ETFS.
Although the Tariff Streamlining NPRM proposed mandatory electronic
filing by all local exchange carriers, the Bureau limited the scope of
the ETFS Order to incumbent LECs. The Commission deferred consideration
of establishing mandatory electronic filing for non-incumbent LECs
until the conclusion of a proceeding considering the mandatory
detariffing of interstate long distance services.
5. On October 31, 1996, the Commission released the Detariffing
Order, which ordered mandatory detariffing of most interstate,
domestic, interexchange services of nondominant interexchange carriers
(IXCs). In deciding to detariff these services, the Commission found
that tariffs ``are not necessary to ensure that the rates, practices,
and classifications of nondominant interexchange carriers for
interstate, domestic, interexchange services are just and reasonable
and not unjustly or unreasonably discriminatory'' and are not necessary
for the protection of consumers. The Commission, however, permitted
some exceptions to mandatory detariffing, in which nondominant carriers
could still file tariffs.
6. In addition, nondominant carriers continue to file tariffs for
other services that were unaffected by the Detariffing Order. For
example, domestic operator service providers (OSPs) must file
informational tariffs pursuant to the Communications Act and the
Commission's rules. Moreover, subject to certain exceptions and
limitations, competitive LECs are permitted to tariff interstate access
charges if the charges are no higher than the rate charged for such
services by the competing incumbent LEC. In contrast to tariff filings
by incumbent LECs, tariff filings by nondominant carriers are currently
submitted via diskette, CD-ROM and/or paper, which are cumbersome and
costly for the carrier, the Commission, and make it difficult for
interested parties to review the documents.
III. Discussion
7. With this document we initiate a rulemaking proceeding to
examine whether mandatory electronic filing of tariffs and associated
documents should be extended to all tariff filing entities. As
discussed below, we propose rules that extend the electronic filing
requirement to all tariff filers. We believe this proposed action is in
the public interest.
8. We solicit comment on our proposal that mandatory electronic
tariff filing should be required for all tariff filers. Specifically,
we propose that all tariff filers must follow the Commission's rules
for electronic tariff filing and file via ETFS their tariffs, tariff
revisions, base documents, and associated documents, including
applications for special permission. In addition, we expect that all
carriers would have the capabilities to file tariffs electronically and
that such a requirement would not impose an undue burden on small or
rural carriers. We invite interested parties to comment and propose
alternative means to accomplish these goals.
9. We believe that electronic filing of all tariffs and associated
documents would facilitate the administration of those tariffs. We also
believe that the expected benefits of electronic tariff filing by
incumbent LECs outlined in the Tariff Streamlining NPRM will also be
realized by requiring electronic filing of all tariffs and associated
documents. These anticipated benefits include: Reducing burdens on
carriers and the Commission; facilitating access to tariffs and
associated documents by the public; increasing the ease in which
interested parties can review all tariffs; making all tariff
information available to state and other federal regulators; and
facilitating the compilation of aggregate carrier data for industry
analysis purposes. We believe that including all tariffs on ETFS
[[Page 48632]]
will improve public access to these filings and will greatly enhance
the transparency and efficiency of the tariff filing process. We invite
interested parties to comment on these anticipated benefits.
Additionally, we propose that international dominant carriers filing
pursuant to section 61.28 of the Commission's rules should be subject
to electronic filing. We seek comment on this proposal.
10. Requirements applicable to carriers filing tariffs
electronically are different from those that apply to carriers filing
tariffs via diskette, CD ROM and/or paper. By requiring electronic
filing of all tariffs, the same rules will apply to all tariff filers,
which will help ensure that interested parties have notice of the type
of filing being made and will be able to more easily review those
filings. In that regard, we invite interested parties to comment on
expanding the applicability of sections 61.14, 61.15, and 61.16 of the
Commission's rules in that manner.
11. Section 61.15 also requires the inclusion of a filer's FCC
Registration Number (FRN) with each electronic tariff filing. We
propose that consistent with this rule, each letter of transmittal must
contain the filing carrier's FRN. If more than one carrier participates
in the tariff, the FRN for the filing carrier and the FRNs for each
individual carrier that participates in the tariff should be included
in the letter of transmittal. This will ensure that it is clear to
Commission staff and the public which carriers are participating in the
tariff. We also propose that the use of consecutive transmittal numbers
for letters of transmittal pursuant to the proposed revision of section
61.15 facilitates the Commission's ability to electronically match the
mandatory tariff filing fee with the appropriate carrier's filing. We
seek comment on these proposals and appropriate alternatives.
12. We also invite specific comment on the use of transmittal
numbers if mandatory electronic filing is required; for carriers
converting from non-electronic filing, should the transmittal numbers
continue sequentially from the last non-electronic tariff or associated
document transmission or should transmittal numbers start anew at the
number one, with the implementation of mandatory electronic filing? We
also invite comment on the numbering of special permission applications
pursuant to section 61.17. If mandatory electronic filing is required,
should the first special permission application filed electronically
for a carrier start with number one or should the special permission
application continue to be numbered sequentially from the last non-
electronically filed special permission request?
13. Currently, sections 61.52 and 61.54 of our rules, which require
specific formatting and composition of tariffs, apply only to dominant
carriers. Because we will be requiring all carriers to file tariffs
electronically, we believe that it may be beneficial for the public and
Commission staff to have consistent formatting of all tariffs.
Accordingly, we propose that all carriers should be required to comply
with the formatting and composition requirements of our rules. This
would ensure that all tariffs have a basic uniformity that will
facilitate an ease of review for customers and other entities examining
such tariffs. However, we recognize that this modification may create a
burden for nondominant carriers that have not been subject to such
requirements in the past. Accordingly, we seek comment on this proposal
and invite specific comment on whether requiring all carriers to comply
with sections 61.52 and 61.54 would place an undue burden on carriers
that have not been required to comply with such requirements in the
past. Moreover, we propose amending the notice requirements of section
61.58 to add a provision that nondominant carriers who are eligible to
file pursuant to the streamlining requirements of section 204(a)(3),
but choose not to, must file tariffs on at least one days' notice. This
addition to section 61.58 would permit us to remove section 61.23 as
duplicative, and instead require all carriers to comply with the
general notice requirements of section 61.58. We seek comment on this
proposed modification to our rules and any appropriate alternatives.
14. A number of nondominant carriers operate under a ``doing
business as'' or d/b/a name. Such a practice can be confusing to
Commission staff and parties searching for tariff documents. Section
61.54 of the Commission's rules requires the ``exact name of the
carrier'' be used to ``identify the carrier issuing the tariff
publication.'' We propose to clarify that this rule requires carriers
to use their legal names in tariffs and associated documents when
filing via ETFS. If carriers use a d/b/a name in addition to their
legal name, we propose that the d/b/a name be noted on the Title page
of the tariff other than with the ``exact name of the carrier.'' We
seek comment on this proposal and any alternative means by which to
address such confusion.
15. We note that ETFS has been available for use since November 17,
1997 and its use has been mandatory for incumbent LECs since July 1,
1998. Given that ETFS has been used by the public for more than a
decade, we seek comment on the amount of time parties believe all
tariff filers will need before they can comply with the mandatory
tariff filing requirement. Specifically, we seek comment on how long
after an order requiring electronic filing for all tariff filers should
filers be required to use ETFS for all tariff and associated document
filing. We propose that all tariff filers must use ETFS for all tariff
and associated document filing 120 days after a final order in this
docket implementing such a requirement (or summary thereof) is
published in the Federal Register. We also propose that affected
carriers must file their currently effective tariffs on ETFS no later
than 120 days after a final order in this docket (or summary thereof)
is published in the Federal Register, which will be the carrier's Base
Document. Once the initial Base Documents are filed on ETFS, all future
tariff revisions would also be required to be filed electronically on
ETFS. After that 120-day period, we propose that the electronic version
of the currently effective tariffs on ETFS will replace all prior
tariffs, and those previously filed will be considered null and void.
Similarly, we propose that tariffs previously filed with the Commission
that are not replaced by an electronic version on ETFS will also be
considered null and void. After that 120-day period, we also propose
that all tariff filers will no longer be permitted to file diskette,
CD-ROM and/or paper copies of tariffs and associated documents that
otherwise would be filed with the Secretary, the Chief of the Pricing
Policy Division of the Wireline Competition Bureau, and the
Commission's commercial contractor. We seek comment on these proposals
and any suggested alternatives.
16. We propose that the Chief of the Wireline Competition Bureau
should be responsible for administering the adoption of electronic
tariff filing requirements for all tariff filers. This is consistent
with the Streamlined Tariff Order. We seek comment on this proposal. We
also seek comment on the proposed rule modifications in Appendix A and
we believe that these proposed requirements are in the public interest
for the reasons stated herein.
17. For consistency and administrative clarity we propose changes
to additional sections in part 61 of the Commission's rules as shown in
Appendix A of the NPRM. For example, we propose consolidating the
requirements for letters of transmittal and cover letters in section
61.15 of the Commission's rules, and therefore,
[[Page 48633]]
propose to delete sections 61.21 and 61.33 of our rules because those
rules would be duplicative of section 61.15. We believe that these
proposed changes are necessary to accomplish the numerous goals
anticipated with the implementation of mandatory electronic tariff
filing for all tariff filing entities. We seek comment on these
proposed changes. Finally, we invite comment on other considerations
and alternatives interested parties believe relevant to extending the
electronic tariff filing requirement to all tariff filing entities.
IV. Procedural Matters
A. Initial Regulatory Flexibility Analysis
18. As required by the Regulatory Flexibility Act of 1980, as
amended (RFA) see 5 U.S.C. 603, the Commission has prepared the present
Initial Regulatory Flexibility Analysis (IRFA) of the possible
significant economic impact on small entities that might result from
this NPRM. 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 NPRM provided above. 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 (or summaries thereof) will be published in the Federal
Register.
1. Need for, and Objectives of, the Proposed Rules
19. Today, the Commission adopts a Notice of Proposed Rulemaking
(NPRM) to consider extending the requirement to file tariff and
associated documents electronically via the Electronic Tariff Filing
System to all tariff filing entities. In the NPRM the Commission seeks
comment on the proposal to extend this requirement to all tariff filing
entities and on the expected benefits of doing such. Additionally, the
Commission seeks comment on the appropriate time frame for implementing
this proposed requirement. The Commission also seeks comment on the
proposal that the Chief of the Wireline Competition Bureau administer
the adoption of this extended electronic filing requirement.
2. Legal Basis
20. The legal basis for any action that may be taken pursuant to
the NPRM is contained in sections 1, 4(i), 201-205, and 226(h)(1)(A) of
the Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 201-
205, and 226(h)(1)(A).
3. Description and Estimate of the Number of Small Entities To Which
the Proposed Rules May Apply
21. 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 proposed rules, if adopted. The RFA generally defines
the term ``small entity'' as having the same meaning as the terms
``small business,'' ``small organization,'' and ``small governmental
jurisdiction.'' In addition, the term ``small business'' has the same
meaning as the term ``small-business concern'' under the Small Business
Act. 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.
22. Competitive Local Exchange Carriers (competitive LECs),
Competitive Access Providers (CAPs), Shared-Tenant Service Providers,
and Other Local Service Providers. Neither the Commission nor the SBA
has developed a small business size standard specifically for these
service providers. The appropriate size standard under SBA rules is for
the category Wired Telecommunications Carriers. Under that size
standard, such a business is small if it has 1,500 or fewer employees.
According to Commission data, 1,005 carriers reported that they were
engaged in the provision of either competitive local exchange services
or competitive access provider services. Of these 1,005 carriers, an
estimated 918 have 1,500 or fewer employees and 87 have more than 1,500
employees. In addition, 16 carriers have reported that they are Shared-
Tenant Service Providers, and all 16 are estimated to have 1,500 or
fewer employees. In addition, 89 carriers have reported that they are
Other Local Service Providers. Of the 89, all 89 have 1,500 or fewer
employees and none has more than 1,500 employees. Consequently, the
Commission estimates that most providers of competitive local exchange
service, competitive access providers, Shared-Tenant Service Providers,
and Other Local Service Providers are small entities.
23. Interexchange Carriers (IXCs). Neither the Commission nor the
SBA has developed a size standard for small businesses specifically
applicable to interexchange services. The closest applicable size
standard under SBA rules is for Wired Telecommunications Carriers.
Under that size standard, such a business is small if it has 1,500 or
fewer employees. According to Commission data, 300 companies reported
that their primary telecommunications service activity was the
provision of interexchange services. Of these 300 companies, an
estimated 268 have 1,500 or fewer employees and 32 have more than 1,500
employees. Consequently, the Commission estimates that the majority of
interexchange service providers are small entities.
24. Operator Service Providers (OSPs). Neither the Commission nor
the SBA has developed a small business size standard specifically for
operator service providers. The appropriate size standard under SBA
rules is for the category Wired Telecommunications Carriers. Under that
size standard, such a business is small if it has 1,500 or fewer
employees. According to Commission data, 28 carriers have reported that
they are engaged in the provision of operator services. Of these, an
estimated 27 have 1,500 or fewer employees and one has more than 1,500
employees. Consequently, the Commission estimates that the majority of
OSPs are small entities.
4. Description of Projected Reporting, Recordkeeping and Other
Compliance Requirements
25. Should the Commission decide to expand mandatory electronic
filing to competitive LECs, the associated rules potentially would
modify the reporting and recordkeeping requirements of these entities.
The NPRM proposed that tariff filers must follow the Commission's rules
for electronic tariff filing and file via ETFS their tariffs, tariff
revisions, base documents and associated documents, including
applications for special permission. Moreover, in order to provide
uniformity for tariff filings, the NPRM would propose to extend certain
procedural requirements to all tariff filing entities, including:
Specific formatting and composition requirements, the use of FCC
registration numbers and the use of transmittal numbers. We seek
comment on the possible burden these requirements would place on small
entities. Also, we seek comment on whether a special approach toward
any possible compliance burdens on small entities might be appropriate.
Entities, especially small businesses, are encouraged to quantify the
costs and benefits of any reporting requirement that may be established
in this proceeding.
[[Page 48634]]
5. Steps Taken To Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered
26. The RFA requires an agency to describe any significant,
specifically small business, alternatives that it has considered in
reaching its proposed approach, which may include the following four
alternatives (among others): ``(1) The establishment of differing
compliance or reporting requirements or timetables that take into
account the resources available to small entities; (2) the
clarification, consolidation, or simplification of compliance and
reporting requirements under the rules for such small entities; (3) the
use of performance rather than design standards; and (4) an exemption
from coverage of the rule, or any part thereof, for such small
entities.''
27. The NPRM seeks comment from all interested parties. Small
entities are encouraged to bring to the Commission's attention any
specific concerns they may have with the proposals outlined in the
NPRM. The Commission believes that most carriers are familiar with the
Electronic Tariff Filing System, if not currently using it. As such,
the Commission believes the burden on small entities will be minimal.
In addition, to assist tariff filers that have not used ETFS
previously, including small entity filers, the Commission is seeking
comment on the amount of time filers will need to transition from paper
filing to using ETFS.
6. Federal Rules That May Duplicate, Overlap, or Conflict With the
Proposed Rules
28. None.
B. Paperwork Reduction Act Analysis
29. The NPRM contains proposed information collection requirements.
As part of the continuing effort to reduce paperwork burdens, we invite
the general public and the OMB to comment on the information
collections contained in this NPRM, as required by the Paperwork
Reduction Act of 1995, 44 U.S.C. 3501 et seq. Public and agency
comments are due at the same time as other comments on this NPRM; OMB
comments are due 60 days from the date of publication of this NPRM in
the Federal Register. Comments should address: (1) 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; (2) the accuracy of the Commission's
burden estimates; (3) ways to enhance the quality, utility, and clarity
of the information collected; and (4) 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. In addition, pursuant to the Small Business Paperwork
Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4), we
seek specific comment on how we might further reduce the information
collection burden for small business concerns with fewer than 25
employees.
C. Ex Parte Presentations
30. This proceeding shall be treated as a ``permit-but-disclose''
proceeding in accordance with the Commission's ex parte rules. Persons
making oral ex parte presentations are reminded that memoranda
summarizing the presentations must contain summaries of the substance
of the presentations and not merely a listing of the subjects
discussed. More than a one or two sentence description of the views and
arguments presented is generally required. Other requirements
pertaining to oral and written presentations are set forth in Sec.
1.1206(b) of the Commission's rules.
List of Subjects
47 CFR Part 61
Communications common carriers, Tariffs, Telecommunications,
Telephone.
47 CFR Part 64
Communications common carriers, Tariffs, Telecommunications,
Telephone.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
Proposed Rules
For the reasons discussed in the preamble, the Federal
Communications Commission proposes to amend 47 CFR parts 61 and 64 as
follows:
PART 61--TARIFFS
1. The authority citation for part 61 continues to read as follows:
Authority: Secs. 1, 4(i), 4(j), 201-205 and 403 of the
Communications Act of 1934, as amended; 47 U.S.C. 151, 154(i),
154(j), 201-205 and 403, unless otherwise noted.
2. Section 61.3 is amended by redesignating paragraphs (t) through
(y) as paragraphs (u) through (z) and by adding paragraph (t) to read
as follows:
Sec. 61.3 Definitions.
* * * * *
(t) Incumbent Local Exchange Carrier. ``Incumbent Local Exchange
Carrier'' or ILEC'' has the same meaning as that term is defined in 47
U.S.C. 251(h).
* * * * *
3. Section 61.13 is amended by revising paragraphs (a) and (b) to
read as follows:
Sec. 61.13 Scope.
(a) This applies to all tariff publications of issuing carriers
required to file tariff publications electronically, and any tariff
publication that a carrier chooses to file electronically.
(b) All issuing carriers that file tariffs are required to file
tariff publications electronically.
* * * * *
4. Section 61.14 is amended by revising paragraphs (b) and (e) to
read as follows:
Sec. 61.14 Method of filing publications.
* * * * *
(b) In addition, except for issuing carriers filing tariffing fees
electronically, for all tariff publications requiring fees as set forth
in part 1, subpart G of this chapter, issuing carriers must submit the
original of the cover letter (without attachments), FCC Form 159, and
the appropriate fee to the address set forth in Sec. 1.1105 of this
chapter.
* * * * *
(e) Carriers that are required to file publications electronically
must comply with the format requirements set forth in Sec. Sec. 61.52
and 61.54.
5. Section 61.15 is revised to read as follows:
Sec. 61.15 Letters of transmittal and cover letters.
(a) All tariff publications filed with the Commission
electronically must be accompanied by a letter of transmittal. All
letters of transmittal filed with the Commission must be numbered
consecutively by the issuing carrier beginning with Number 1. All
letters of transmittal must also:
(1) Concisely explain the nature and purpose of the filing;
(2) Specify whether supporting information is required for the new
tariff or tariff revision, and specify the Commission rule or rules
governing the supporting information requirements for that filing;
(3) Contain a statement indicating the date and method of filing of
the original of the transmittal as required by Sec. 61.14(b);
(4) Include the FCC Registration Number (FRN) of the carrier(s) on
whose behalf the cover letter is submitted. See subpart W of part 1 of
this title.
[[Page 48635]]
(b) Local exchange carriers filing tariffs electronically pursuant
to the notice requirements of section 204(a)(3) of the Communications
Act shall display prominently, in the upper right hand corner of the
letter of transmittal, a statement that the filing is made pursuant to
that section and whether the tariff is filed on 7 or 15 days notice.
(c) Any carrier filing a new or revised tariff made on 15 days'
notice or less shall include in the letter of transmittal the name,
room number, street address, telephone number, and facsimile number of
the individual designated by the filing carrier to receive personal or
facsimile service of petitions against the filing as required under
Sec. 1.773(a)(4) of this chapter.
(d) International carriers must certify that they are authorized
under Section 214 of the Communications Act of 1934, as amended, to
provide service, and reference the FCC file number of that
authorization.
(e) In addition to the requirements set forth in paragraph (a) of
this section, any incumbent local exchange carrier choosing to file an
Access Tariff under Sec. 61.39 must include in the transmittal:
(1) A summary of the filing's basic rates, terms and conditions;
(2) A statement concerning whether any prior Commission facility
authorization necessary to the implementation of the tariff has been
obtained; and
(3) A statement that the filing is made pursuant to Sec. 61.39.
(f) In addition to the requirements set forth in paragraph (a) of
this section, any price cap local exchange carrier filing a price cap
tariff must include in the letter of transmittal a statement that the
filing is made pursuant to Sec. 61.49.
(g) The letter of transmittal must specifically reference by number
any special permission necessary to implement the tariff publication.
Special permission must be granted prior to the filing of the tariff
publication and may not be requested in the transmittal letter.
(h)(1) The letter of transmittal must be substantially in the
following format:
-----------------------------------------------------------------------
(Exact name of carrier in full)
-----------------------------------------------------------------------
(Post Office Address)
-----------------------------------------------------------------------
(Date)
-----------------------------------------------------------------------
Transmittal No.
Secretary, Federal Communications Commission; Washington, DC 20554
Attention: Wireline Competition Bureau
The accompanying tariff (or other publication) issued by ----, and
bearing FCC No. ----, effective ----, 20 --, is sent to you for
filing in compliance with the requirements of the Communications Act
of 1934, as amended. (Here give the additional information
required.)
-----------------------------------------------------------------------
(Name of issuing officer or agent)
-----------------------------------------------------------------------
(Title)
(2) A separate letter of transmittal may accompany each
publication, or the above format may be modified to provide for filing
as many publications as desired with one transmittal letter.
(i) All submissions of documents other than a new tariff or
revisions to an existing tariff, such as Base Documents or Tariff
Review Plans, must be accompanied by a cover letter that concisely
explains the nature and purpose of the filing. Publications submitted
under this paragraph are not required to submit a tariffing fee.
6. Section 61.16 is amended by revising paragraphs (a) and (b) to
read as follows:
Sec. 61.16 Base documents.
(a) The Base Document is a complete tariff which incorporates all
effective revisions, as of the last day of the preceding month. The
Base Document should be submitted with a cover letter as specified in
Sec. 61.15(i) and identified as the Monthly Updated Base Document.
(b) Initially, issuing carriers that currently have tariffs on file
with the commission must file a Base Document within five days of the
initiation of mandatory electronic filing.
* * * * *
7. Section 61.17 is revised to read as follows:
Sec. 61.17 Applications for special permission.
(a) All issuing carriers that file applications for special
permission, associated documents, such as transmittal letters, requests
for special permission, and supporting information, shall file those
documents electronically.
(b) Applications for special permission must contain:
(1) A detailed description of the tariff publication proposed to be
put into effect;
(2) A statement citing the specific rules and the grounds on which
waiver is sought;
(3) A showing of good cause; and
(4) The appropriate Illustrative tariff pages the issuing carrier
wishes to either revise or add as new pages to its tariff.
(c) An application for special permission must be addressed to
``Secretary, Federal Communications Commission, Washington, DC 20554.''
The Electronic Tariff Filing System will accept filings 24 hours a day,
seven days a week. The official filing date of a publication received
by the Electronic Tariff Filing System will be determined by the date
and time the transmission ends. If the transmission ends after the
close of a business day, as that term is defined in Sec. 1.4(e)(2) of
this chapter, the filing will be date and time stamped as of the
opening of the next business day.
(d) In addition, except for issuing carriers filing tariffing fees
electronically, for special permission applications requiring fees as
set forth in part 1, subpart G of this chapter, issuing carriers must
submit the original of the application letter (without attachments),
FCC Form 159, and the appropriate fee to the address set forth in Sec.
1.1105 of this chapter.
(e) In addition, if an issuing carrier applies for special
permission to revise joint tariffs, the application must state that it
is filed on behalf of all carriers participating in the affected
service. Applications must be numbered consecutively in a series
separate from FCC tariff numbers and Letters of Transmittal, bear the
signature of the officer or agent of the carrier, and be in the
following format:
Application No.--------------------------------------------------------
(Date)-----------------------------------------------------------------
Secretary
Federal Communications Commission
Washington, DC 20554.
Attention: Wireline Competition Bureau (here provide the statements
required by section 61.17(b)).
(Exact name of carrier)------------------------------------------------
(Name of officer or agent)---------------------------------------------
(Title of officer or agent)--------------------------------------------
(f) If approved, the issuing carrier must comply with all terms and
use all authority specified in the grant. If a carrier elects to use
less than the authority granted, it must apply to the Commission for
modification of the original grant. If a carrier elects not to use the
authority granted within sixty days of its effective date, the original
grant will be automatically cancelled by the Commission.
8. Section 61.20 is revised to read as follows:
Sec. 61.20 Method of filing publications.
(a) All issuing carriers that file tariffs shall file all tariff
publications and associated documents, such as transmittal letters,
requests for special permission, and supporting information,
electronically in accordance with the requirements set forth in Sec.
61.13 through Sec. 61.17.
(b) In addition, except for issuing carriers filing tariffing fees
[[Page 48636]]
electronically, for all tariff publications requiring fees as set forth
in part 1, subpart G of this chapter, issuing carriers must submit the
original of the cover letter (without attachments), FCC Form 159, and
the appropriate fee to the address set forth in Sec. 1.1105 of this
chapter.
Sec. Sec. 61.21 through 61.23 [Removed and Reserved]
9. Remove and reserve Sec. Sec. 61.21 through 61.23.
Sec. Sec. 61.32 and 61.33 [Removed and Reserved]
10. Remove and reserve Sec. Sec. 61.32 and 61.33.
11. Section 61.38 is revised to read as follows:
Sec. 61.38 Supporting information to be submitted with letters of
transmittal.
(a) Scope. This section applies to dominant carriers whose gross
annual revenues exceed $500,000 for the most recent 12 month period of
operations or are estimated to exceed $500,000 for a representative 12
month period. Incumbent Local exchange carriers serving 50,000 or fewer
access lines in a given study area that are described as subset 3
carriers in Sec. 69.602 of this chapter may submit Access Tariff
filings for that study area pursuant to either this section or Sec.
61.39. However, the Commission may require any issuing carrier to
submit such information as may be necessary for a review of a tariff
filing. This section (other than the preceding sentence of this
paragraph) shall not apply to tariff filings proposing rates for
services identified in Sec. 61.42 (d), (e), and (g).
(b) Explanation and data supporting either changes or new tariff
offerings. The material to be submitted for a tariff change which
affects rates or charges or for a tariff offering a new service, must
include an explanation of the changed or new matter, the reasons for
the filing, the basis of ratemaking employed, and economic information
to support the changed or new matter.
(1) For a tariff change the issuing carrier must submit the
following, including complete explanations of the bases for the
estimates.
(i) A cost of service study for all elements for the most recent 12
month period;
(ii) A study containing a projection of costs for a representative
12 month period;
(iii) Estimates of the effect of the changed matter on the traffic
and revenues from the service to which the changed matter applies, the
issuing carrier's other service classifications, and the carrier's
overall traffic and revenues. These estimates must include the
projected effects on the traffic and revenues for the same
representative 12 month period used in (b)(1)(ii) of this section.
(2) For a tariff filing offering a new service, the issuing carrier
must submit the following, including complete explanations of the bases
for the estimates.
(i) A study containing a projection of costs for a representative
12 month period; and
(ii) Estimates of the effect of the new matter on the traffic and
revenues from the service to which the new matter applies, the issuing
carrier's other service classifications, and the issuing carrier's
overall traffic and revenues. These estimates must include the
projected effects on the traffic and revenues for the same
representative 12 month period used in paragraph (b)(2)(i) of this
section.
(3) [Reserved]
(4) For a tariff that introduces a system of density pricing zones,
as described in Sec. 69.123 of this chapter, the issuing carrier must,
before filing its tariff, submit a density pricing zone plan including,
inter alia, documentation sufficient to establish that the system of
zones reasonably reflects cost-related characteristics, such as the
density of total interstate traffic in central offices located in the
respective zones, and receive approval of its proposed plan.
(c) Working papers and statistical data. (1) Concurrently with the
filing of any tariff change or tariff filing for a service not
previously offered, the issuing carrier must file the working papers
containing the information underlying the data supplied in response to
paragraph (b) of this section, and a clear explanation of how the
working papers relate to that information.
(2) All statistical studies must be submitted and supported in the
form prescribed in Sec. 1.363 of this chapter.
(d) Form and content of additional material to be submitted with
certain rate increases. In the circumstances set out in paragraphs
(d)(1) and (2) of this section, the issuing carrier must submit all
additional cost, marketing and other data underlying the working papers
to justify a proposed rate increase. The issuing carrier must submit
this information in suitable form to serve as the carrier's direct case
in the event the rate increase is set by the Commission for
investigation.
(1) Rate increases affecting single services or tariffed items.
(i) A rate increase in any service or tariffed item which results
in more than $1 million in additional annual revenues, calculated on
the basis of existing quantities in service, without regard to the
percentage increase in such revenues; or
(ii) A single rate increase in any service or tariffed item, or
successive rate increases in the same service or tariffed item within a
12 month period, either of which results in:
(A) At least a 10 percent increase in annual revenues from that
service or tariffed item, and
(B) At least $100,000 in additional annual revenues, both
calculated on the basis of existing quantities in service.
(2) Rate increases affecting more than one service or tariffed
item.
(i) A general rate increase in more than one service or tariffed
item occurring at one time, which results in more than $1 million in
additional revenues calculated on the basis of existing quantities in
service, without regard to the percentage increase in such revenues; or
(ii) A general rate increase in more than one service or tariffed
item occurring at one time, or successive general rate increases in the
same services or tariffed items occurring within a 12 month period,
either of which results in:
(A) At least a 10 percent increase in annual revenues from those
services or tariffed items, and
(B) At least $100,000 in additional annual revenues, both
calculated on the basis of existing quantities in service.
(e) Submission of explanation and data by connecting carriers. If
the changed or new matter is being filed by the issuing carrier at the
request of a connecting carrier, the connecting carrier must provide
the data required by paragraphs (b) and (c) of this section on the date
the issuing carrier files the tariff matter with the Commission.
(f) Copies of explanation and data to customers. Concurrently with
the filing of any rate for special construction (or special assembly
equipment and arrangements) developed on the basis of estimated costs,
the issuing carrier must transmit to the customer a copy of the
explanation and data required by paragraphs (b) and (c) of this
section.
(g) On each page of cost support material submitted pursuant to
this section, the issuing carrier shall indicate the transmittal number
under which that page was submitted.
12. Section 61.39 is revised to read as follows:
[[Page 48637]]
Sec. 61.39 Optional supporting information to be submitted with
letters of transmittal for Access Tariff filings by incumbent local
exchange carriers serving 50,000 or fewer access lines in a given study
area that are described as subset 3 carriers in Sec. 69.602.
(a) Scope. This section provides for an optional method of filing
for any incumbent local exchange carrier that is described as subset 3
carrier in Sec. 69.602 of this chapter, which elects to issue its own
Access Tariff for a period commencing on or after April 1, 1989, and
which serves 50,000 or fewer access lines in a study area as determined
under Sec. 36.611(a)(8) of this chapter. However, the Commission may
require any issuing carrier to submit such information as may be
necessary for review of a tariff filing. This section (other than the
preceding sentence of this paragraph) shall not apply to tariff filings
of price cap local exchange carriers.
(b) Explanation and data supporting tariff changes. The material to
be submitted to either a tariff change or a new tariff which affects
rates or charges must include an explanation of the filing in the
transmittal as required by Sec. 61.15. The basis for ratemaking must
comply with the following requirements. Except as provided in paragraph
(b)(5) of this section, it is not necessary to submit this supporting
data at the time of filing. However, the incumbent local exchange
carrier should be prepared to submit the data promptly upon reasonable
request by the Commission or interested parties.
(1) For a tariff change, the incumbent local exchange carrier that
is a cost schedule carrier must propose Tariff Sensitive rates based on
the following:
(i) For the first period, a cost of service study for Traffic
Sensitive elements for the most recent 12 month period with related
demand for the same period.
(ii) For subsequent filings, a cost of service study for Traffic
Sensitive elements for the total period since the incumbent local
exchange carrier's last annual filing, with related demand for the same
period.
(2) For a tariff change, the incumbent local exchange carrier that
is an average schedule carrier must propose Traffic Sensitive rates
based on the following:
(i) For the first period, the incumbent local exchange carrier's
most recent annual Traffic Sensitive settlement from the National
Exchange Carrier Association pool.
(ii) For subsequent filings, an amount calculated to reflect the
Traffic Sensitive average schedule pool settlement the carrier would
have received if the carrier had continued to participate, based upon
the most recent average schedule formulas approved by the Commission.
(3) For a tariff change, the incumbent local exchange carrier that
is a cost schedule carrier must propose Common Line rates based on the
following:
(i) For the first biennial filing, the common line revenue
requirement shall be determined by a cost of service study for the most
recent 12-month period. Subscriber line charges shall be based on cost
and demand data for the same period. Carrier common line rates shall be
determined by the following formula:
[GRAPHIC] [TIFF OMITTED] TP11AU10.028
Where:
[GRAPHIC] [TIFF OMITTED] TP11AU10.029
And where:
CCL Rev Req = carrier common line revenue requirement for the most
recent 12-month period;
CCL MOUb = carrier common line minutes of use for the
most recent 12-month period;
CCL MOU1 = CCL MOUb; and
CCL MOU0 = carrier common line minutes of use for the 12-
month period preceding the most recent 12-month period.
(ii) For subsequent biennial filings, the common line revenue
requirement shall be determined by a cost of service study for the most
recent 24-month period. Subscriber line charges shall be based on cost
and demand data for the same period. Carrier common line rates shall be
determined by the following formula:
[GRAPHIC] [TIFF OMITTED] TP11AU10.030
Where:
[GRAPHIC] [TIFF OMITTED] TP11AU10.031
And where:
CCL Rev Req = carrier common line revenue requirement for the most
recent 24-month period;
CCL MOUb = carrier common line minutes of use for the
most recent 24-month period;
CCL MOU1 = carrier common line minutes of use for the 12-
month period; and
CCL MOU0 = carrier common line minutes of use for the 12-
month period preceding the most recent 12-month period.
(4) For a tariff change, the incumbent local exchange carrier which
is an average schedule carrier must propose common line rates based on
the following:
(i) For the first biennial filings, the common line revenue
requirement shall be determined by the incumbent local exchange
carrier's most recent annual Common Line settlement from the National
Exchange Carrier Association. Subscriber line charges shall be based on
cost and demand data for the same period. Carrier common line rates
shall be determined by the following formula:
[GRAPHIC] [TIFF OMITTED] TP11AU10.032
Where:
[GRAPHIC] [TIFF OMITTED] TP11AU10.033
And where:
CCL Rev Req = carrier common line settlement for the most recent 12-
month period;
CCL MOUb = carrier common line minutes of use for the
most recent 12-month period;
CCL MOU1 = CCL MOUb; and
CCL MOU0 = carrier common line minutes of use for the 12-
month period preceding the most recent 12-month period.
(ii) For subsequent biennial filings, the common line revenue
requirement shall be an amount calculated to reflect the average
schedule pool settlements the carrier would have received if the
carrier had continued to participate in the carrier common line pool,
based upon the average schedule Common Line formulas developed by the
National Exchange Carrier Association for the most recent 24-month
period. Subscriber line charges shall be based on cost and demand data
for the same period. Carrier common line rates shall be determined by
the following formula:
[GRAPHIC] [TIFF OMITTED] TP11AU10.034
Where:
[GRAPHIC] [TIFF OMITTED] TP11AU10.035
And where:
CCL Rev Req = carrier common line settlement for the most recent 24-
month period;
CCL MOUb = carrier common line minutes of use for the
most recent 24-month period;
CCL MOU1 = carrier common line minutes of use for the
most recent 12-month period; and
CCL MOU0 = carrier common line minutes of use for the 12-
month period preceding the most recent 12-month period.
(5) For End User Common Line charges included in a tariff pursuant
to this Section, the incumbent local
[[Page 48638]]
exchange carrier must provide supporting information for the two-year
historical period with its letter of transmittal in accordance with
Sec. 61.38.
(c) Maximum allowable rate of return. Incumbent Local exchange
carriers filing tariffs under this section are not required to comply
with Sec. Sec. 65.700 through 65.701 of this chapter, except with
respect to periods during which tariffs were not subject to this
section. The Commission may require any carrier to submit such
information if it deems it necessary to monitor the carrier's earnings.
However, rates must be calculated based on the incumbent local exchange
carrier's prescribed rate of return applicable to the period during
which the rates are effective.
(d) Rates for a new service that is the same as that offered by a
price cap local exchange carrier providing service in an adjacent
serving area are deemed presumptively lawful, if the proposed rates, in
the aggregate, are no greater than the rates established by the price
cap local exchange carrier. Tariff filings made pursuant to this
paragraph must include the following:
(1) A brief explanation of why the service is like an existing
service offered by a geographically adjacent price cap local exchange
carrier; and
(2) Data to establish compliance with this paragraph that, in
aggregate, the proposed rates for the new service are no greater than
those in effect for the same or comparable service offered by that same
geographically adjacent price cap regulated local exchange carrier.
Compliance may be shown through submission of applicable tariff pages
of the adjacent carrier; a showing that the serving areas are adjacent;
any necessary explanations and work sheets.
(e) Average schedule companies filing pursuant to this section
shall retain their status as average schedule companies.
(f) On each page of cost support material submitted pursuant to
this section, the issuing carrier shall indicate the transmittal number
under which that page was submitted.
13. Section 61.40 is amended by revising paragraph (a) introductory
text to read as follows:
Sec. 61.40 Private line rate structure guidelines.
(a) The Commission uses a variety of tools to determine whether a
dominant carrier's private line tariffs are just, reasonable, and
nondiscriminatory. The dominant carrier's burden of cost justification
can be reduced when its private line rate structures comply with the
following five guidelines.
* * * * *
14. Section 61.41 is amended by revising paragraph (a)(2) to read
as follows:
Sec. 61.41 Price cap requirements generally.
(a) * * *
(2) To such price cap local exchange carriers as specified by
Commission order, and to all local exchange carriers, other than
average schedule companies, that are affiliated with such carriers; and
* * * * *
15. Section 61.42 is amended by revising paragraphs (d)
introductory text, (d)(4)(i) and (d)(4)(ii), (e)(1) introductory text,
and (f) to read as follows:
Sec. 61.42 Price cap baskets and service categories.
* * * * *
(d) Each price cap local exchange carrier shall establish baskets
of services as follows:
* * * * *
(4)(i) To the extent that a price cap local exchange carrier
specified in Sec. 61.41(a)(2) or (a)(3) offers interstate
interexchange services that are not classified as access services for
the purpose of part 69 of this chapter, such exchange carrier shall
establish a fourth basket for such services. For purposes of Sec. Sec.
61.41 through 61.49, this basket shall be referred to as the
``interexchange basket.''
(ii) If a price cap local exchange carrier has implemented
interLATA and intraLATA toll dialing parity everywhere it provides
local exchange services at the holding company level, that price cap
carrier may file a tariff revision to remove corridor and interstate
intraLATA toll services from its interexchange basket.
* * * * *
(e)(1) The traffic sensitive switched interstate access basket
shall contain such services as the Commission shall permit or require,
including the following service categories:
* * * * *
(f) Each price cap local exchange carrier shall exclude from its
price cap baskets such services or portions of such services as the
Commission has designated or may hereafter designate by order.
* * * * *
16. Section 61.43 is revised to read as follows:
Sec. 61.43 Annual price cap filings required.
Price cap local exchange carriers shall submit annual price cap
tariff filings that propose rates for the upcoming tariff year, that
make appropriate adjustments to their PCI, API, and SBI values pursuant
to Sec. Sec. 61.45 through 61.47, and that incorporate new services
into the PCI, API, or SBI calculations pursuant to Sec. Sec. 61.45(g),
61.46(b), and 61.47(b) and (c). Price cap local exchange carriers may
propose rate, PCI, or other tariff changes more often than annually,
consistent with the requirements of Sec. 61.59.
17. Section 61.45 is amended by revising paragraphs (a), (b)(1)(i)
introductory text, and (d)(2) to read as follows:
Sec. 61.45 Adjustments to the PCI for Local Exchange Carriers.
(a) Price cap local exchange carriers shall file adjustments to the
PCI for each basket as part of the annual price cap tariff filing, and
shall maintain updated PCIs to reflect the effect of mid-year exogenous
cost changes.
(b)(1)(i) Adjustments to price cap local exchange carrier PCIs, in
those carriers' annual access tariff filings, the traffic sensitive
basket described in Sec. 61.42(d)(2), the trunking basket described in
Sec. 61.42(d)(3), the special access basket described in Sec.
61.42(d)(5) and the Interexchange Basket described in Sec.
61.42(d)(4)(i), shall be made pursuant to the following formula:
* * * * *
(d) * * *
(2) Price cap local exchange carriers specified in Sec. Sec.
61.41(a)(2) or (a)(3) shall, in their annual access tariff filing,
recognize all exogenous cost changes attributable to modifications
during the coming tariff year in their Subscriber Plant Factor and the
Dial Equipment Minutes factor, and completions of inside wire
amortizations and reserve deficiency amortizations.
* * * * *
18. Section 61.46 is amended by revising paragraph (a) introductory
text to read as follows:
Sec. 61.46 Adjustments to the API.
(a) Except as provided in paragraphs (d) and (e) of this section,
in connection with any price cap tariff filing proposing rate changes,
the price cap local exchange carrier must calculate an API for each
affected basket pursuant to the following methodology:
* * * * *
19. Section 61.47 is amended by revising paragraphs (f), (i)(2),
and (i)(5) to read as follows:
Sec. 61.47 Adjustments to the SBI; pricing bands.
* * * * *
(f) A price cap local exchange carrier may establish density zones
pursuant to the requirements set forth in Sec. 69.123 of this chapter,
for any service in the
[[Page 48639]]
trunking and special access baskets, other than the interconnection
charge set forth in Sec. 69.124 of this chapter. The pricing
flexibility of each zone shall be limited to an annual increase of 15
percent, relative to the percentage change in the PCI for that basket,
measured from the levels in effect on the last day of the preceding
tariff year. There shall be no lower pricing band for any density zone.
* * * * *
(i)(1) * * *
(2) Effective January 1, 1998, notwithstanding the requirements of
paragraph (a) of this section, if a price cap local exchange carrier is
recovering interconnection charge revenues through per-minute rates
pursuant to Sec. 69.155 of this chapter, any reductions to the PCI for
the basket designated in Sec. 61.42(d)(3) resulting from the
application of the provisions of Sec. 61.45(b)(1)(i) and from the
application of the provisions of Sec. Sec. 61.45(i)(1) and 61.45(i)(2)
shall be directed to the SBI of the service category designated in
Sec. 61.42(d)(i).
* * * * *
(5) Effective July 1, 2000, notwithstanding the requirements of
paragraph (a) of this section and subject to the limitations of Sec.
61.45(i), if a price cap local exchange carrier is recovering an ATS
charge greater than its Target Rate as set forth in Sec. 61.3(qq), any
reductions to the PCI for the traffic sensitive or trunking baskets
designated in Sec. Sec. 61.42(d)(2) and 61.42(d)(3) resulting from the
application of the provisions of Sec. 61.45(b), and the formula in
Sec. 61.45(b) and from the application of the provisions of Sec. Sec.
61.45(i)(1), and 61.45(i)(2) shall be directed to the SBIs of the
service categories designated in Sec. Sec. 61.42(e)(1) and
61.42(e)(2).
* * * * *
20. Section 61.48 is amended by revising paragraphs (i)(2), (i)(3)
introductory text, (i)(4), and (l)(2) to read as follows:
Sec. 61.48 Transition rules for price cap formula calculations.
* * * * *
(i) * * *
(2) Simultaneous Introduction of Special Access and Transport
Zones. Price cap local exchange carriers that have established density
pricing zones pursuant to Sec. 69.123 of this chapter, and whose
special access zone date and transport zone date occur on the same
date, shall initially establish density pricing zone SBIs and bands
pursuant to the methodology in Sec. 61.47(e) and (f).
(3) Sequential Introduction of Zones in the Same Tariff Year.
Notwithstanding Sec. 61.47(e) and (f), price cap local exchange
carriers that have established density pricing zones pursuant to Sec.
69.123 of this chapter, and whose special access zone date and
transport zone date occur on different dates during the same tariff
year, shall, on the earlier date, establish density pricing zone SBIs
and pricing bands using the methodology described in Sec. 61.47(e) and
(f), but applicable to the earlier service only. On the later date,
such carriers shall recalculate the SBIs and pricing bands to limit the
pricing flexibility of the services included in each density pricing
zone category, as reflected in its SBI, as follows:
* * * * *
(4) Introduction of Zones in Different Tariff Years.
Notwithstanding Sec. 61.47(e) and (f), those price cap local exchange
carriers that have established density pricing zones pursuant to Sec.
69.123 of this chapter, and whose special access zone date and
transport zone date do not occur within the same tariff year, shall, on
the earlier date, establish density pricing zone SBIs and pricing bands
using the methodology described in Sec. 61.47(e) and (f), but
applicable to the earlier service only.
* * * * *
(l) * * *
(2) Once the reductions in paragraph (l)(1)(i) and paragraphs
(l)(1)(ii)(A) and (B) of this section are identified, the difference
between those reductions and $2.1 billion is the total amount of
additional reductions that would be made to ATS rates of price cap
local exchange carriers. This amount will then be restated as the
percentage of total price cap local exchange carrier Local Switching
revenues as of June 30, 2000 using 2000 annual filing base period
demand (``June 30 Local Switching revenues'') necessary to yield the
total amount of additional reductions and taking into account the fact
that, if participating, a price cap local exchange carrier would not
reduce ATS rates below its Target Rate as set forth in Sec. 61.3(qq).
Each price cap local exchange carrier then reduces ATS rate elements,
and associated SBI upper limits and PCIs, by a dollar amount equivalent
to the percentage times the June 30 Local Switching revenues for that
filing entity, provided that no price cap local exchange carrier shall
be required to reduce its ATS rates below its Target Rate as set forth
in Sec. 61.3(qq). Each price cap local exchange carrier can take its
additional reductions against any of the ATS rate elements, provided
that at least a proportional share must be taken against Local
Switching rates.
* * * * *
21. Section 61.49 is amended by revising paragraphs (f)(2), (f)(3),
(f)(4), (g) introductory text, (g)(2), (h), (k) and (l) to read as
follows:
Sec. 61.49 Supporting information to be submitted with letters of
transmittal for tariffs of carriers subject to price cap regulation.
* * * * *
(f) * * *
(2) Each tariff filing submitted by a price cap local exchange
carrier that introduces a new loop-based service, as defined in Sec.
61.3(pp)--including a restructured unbundled basic service element
(BSE), as defined in Sec. 69.2(mm) of this chapter, that constitutes a
new loop-based service--that is or will later be included in a basket,
must be accompanied by cost data sufficient to establish that the new
loop-based service or unbundled BSE will not recover more than a just
and reasonable portion of the carrier's overhead costs.
(3) A price cap local exchange carrier may submit without cost data
any tariff filings that introduce new services, other than loop-based
services.
(4) A price cap local exchange carrier that has removed its
corridor or interstate intraLATA toll services from its interexchange
basket pursuant to Sec. 61.42(d)(4)(ii), may submit its tariff filings
for corridor or interstate intraLATA toll services without cost data.
(g) Each tariff filing submitted by a price cap local exchange
carrier that introduces a new loop-based service or a restructured
unbundled basic service element (BSE), as defined in Sec. 69.2(mm) of
this chapter, that is or will later be included in a basket, or that
introduces or changes the rates for connection charge subelements for
expanded interconnection, as defined in Sec. 69.121 of this chapter,
must also be accompanied by:
* * * * *
(2) Working papers and statistical data. (i) Concurrently with the
filing of any tariff change or tariff filing for a service not
previously offered, the issuing carriers must file the working papers
containing the information underlying the data supplied in response to
paragraph (h)(1) of this section, and a clear explanation of how the
working papers relate to that information.
(ii) All statistical studies must be submitted and supported in the
form prescribed in Sec. 1.363 of this chapter.
(h) Each tariff filing submitted by a price cap local exchange
carrier that
[[Page 48640]]
introduces or changes the rates for connection charge subelements for
expanded interconnection, as defined in Sec. 69.121 of this chapter,
must be accompanied by cost data sufficient to establish that such
charges will not recover more than a just and reasonable portion of the
carrier's overhead costs.
* * * * *
(k) In accordance with Sec. Sec. 61.41 through 61.49, price cap
local exchange carriers that elect to file their annual access tariff
pursuant to section 204(a)(3) of the Communications Act shall submit
supporting material for their interstate annual access tariffs, absent
rate information, 90 days prior to July 1 of each year.
(l) On each page of cost support material submitted pursuant to
this section, the issuing carrier shall indicate the transmittal number
under which that page was submitted.
Subpart H--[Removed]
22. Remove Subpart H consisting of Sec. Sec. 61.151 through
61.153.
Subpart G--[Redesignated as Subpart H]
23. Redesignate Subpart G (Sec. Sec. 61.131 to 61.136) as Subpart
H.
Subpart F--[Redesignated as Subpart G]
24. Redesignate Subpart F (Sec. Sec. 61.66 to 61.87) as Subpart G.
25. Designate Sec. Sec. 61.52 through 61.59 as subpart F, and add
a new subpart F heading to read as follows:
Subpart F--Formatting and Notice Requirements for Tariff
Publications
26. Section 61.51 is added to newly designated subpart F to read as
follows:
Sec. 61.51 Scope.
The rules in this subpart apply to tariffs filed by issuing
carriers, with the exception of the informational tariffs filed
pursuant to 47 U.S.C. 226(h)(1)(A), unless otherwise noted.
27. Section 61.52 is amended by removing paragraph (a),
redesignating paragraphs (b) and (c) as paragraphs (a) and (b) and
revising newly redesignated paragraph (a) introductory text, and newly
redesignated paragraph (b) to read as follows:
Sec. 61.52 Form, size, type, legibility, etc.
(a) Pages of tariffs must be numbered consecutively and designated
as ``Original title page,'' ``Original page 1,'' ``Original page 2,''
etc.
* * * * *
(b) All issuing carriers shall file all tariff publications and
associated documents, such as transmittal letters, requests for special
permission, and supporting information, electronically in accordance
with the requirements set forth in Sec. 61.13 through Sec. 61.17.
28. Section 61.55 is amended by revising paragraph (a) to read as
follows:
Sec. 61.55 Contract-based tariffs.
(a) This section shall apply to price cap local exchange carriers
permitted to offer contract-based tariffs under Sec. 69.727(a) of this
chapter.
* * * * *
29. Section 61.58 is amended by revising paragraphs (a)(2)(ii),
(d), (e)(1) introductory text and adding new paragraph (f) to read as
follows:
Sec. 61.58 Notice requirements.
(a) * * *
(2) * * *
(ii) Local exchange carriers may elect not to file tariffs pursuant
to section 204(a)(3) of the Communications Act. For dominant carriers,
any such tariffs shall be filed on at least 16 days' notice. For
nondominant carriers, any such tariffs shall be filed on at least one
days' notice.
* * * * *
(d)(1) A price cap local exchange carrier that is filing a tariff
revision to remove its corridor or interstate intraLATA toll services
from its interexchange basket pursuant to Sec. 61.42(d)(4)(ii) shall
submit such filing on at least fifteen days' notice.
(2) A price cap local exchange carrier that has removed its
corridor and interstate intraLATA toll services from its interexchange
basket pursuant to Sec. 61.42(d)(4)(ii) shall file subsequent tariff
filings for corridor or interstate intraLATA toll services on at least
one day's notice.
(e) Non-price cap local exchange carriers and/or services. (1)
Tariff filings in the instances specified in paragraphs (e)(1)(i),
(ii), and (iii) of this section by dominant carriers must be made on at
least 15 days' notice.
* * * * *
(f) All tariff filings of domestic and international non-dominant
carriers must be made on at least one days' notice.
30. Section 61.59 is amended by revising paragraphs (b) and (c) to
read as follows:
Sec. 61.59 Effective period required before changes.
* * * * *
(b) Changes to rates and regulations for dominant carriers that
have not yet become effective, i.e., are pending, may not be made
unless the effective date of the proposed changes is at least 30 days
after the scheduled effective date of the pending revisions.
(c) Changes to rates and regulations for dominant carriers that
have taken effect but have not been in effect for at least 30 days may
not be made unless the scheduled effective date of the proposed changes
is at least 30 days after the effective date of the existing
regulations.
31. Section 61.66 is revised to read as follows:
Sec. 61.66 Scope.
The rules in this subpart apply to all issuing carriers, unless
otherwise noted.
32. Section 61.68 is amended by revising paragraph (a) to read as
follows:
Sec. 61.68 Special notations.
(a) Any tariff filing made pursuant to an Application for Special
Permission, Commission decision or order must contain the following
statement:
Issued under authority of (specific reference to the special
permission, Commission decision, or order) of the Commission.
* * * * *
33. Section 61.83 is revised to read as follows:
Sec. 61.83 Consecutive numbering.
Issuing carriers should file tariff publications under consecutive
FCC numbers. If this cannot be done, a memorandum containing an
explanation of the missing number or numbers must be submitted.
Supplements to a tariff must be numbered consecutively in a separate
series.
34. Section 61.86 is revised to read as follows:
Sec. 61.86 Supplements.
An issuing carrier may not file a supplement except to suspend or
cancel a tariff publication, or to defer the effective date of pending
tariff revisions. A carrier may file a supplement for the voluntary
deferral of a tariff publication.
35. Section 61.87 is amended by revising paragraph (a) introductory
text, paragraphs (a)(1)(i), (a)(1)(ii), (a)(3), and (c) to read as
follows:
Sec. 61.87 Cancellation of tariffs.
(a) An issuing carrier may cancel an entire tariff. Cancellation of
a tariff automatically cancels every page and supplement to that tariff
except for the canceling Title Page or first page.
(1) * * *
(i) The issuing carrier whose tariff is being canceled must revise
the Title Page or the first page of its tariff indicating that the
tariff is no longer effective, or
[[Page 48641]]
(ii) The issuing carrier under whose tariff the service(s) will be
provided must revise the Title Page or first page of the tariff to be
canceled, using the name and numbering shown in the heading of the
tariff to be canceled, indicating that the tariff is no longer
effective. This carrier must also file with the Commission the new
tariff provisions reflecting the service(s) being canceled. Both
filings must be effective on the same date and may be filed under the
same transmittal.
* * * * *
(3) A carrier canceling its tariff, as described in this section,
must comply with Sec. 61.54(b)(1) and (b)(5), as applicable.
* * * * *
(c) When a carrier ceases to provide service(s) without a
successor, it must cancel its tariff pursuant to the notice
requirements of Sec. 61.58, as applicable, unless otherwise authorized
by the Commission.
36. Section 61.132 is revised to read as follows:
Sec. 61.132 Method of filing concurrences.
A carrier proposing to concur in another carrier's effective tariff
must deliver one copy of the concurrence to the issuing carrier in
whose favor the concurrence is issued. The concurrence must be signed
by an officer or agent of the carrier executing the concurrence, and
must be numbered consecutively in a separate series from its FCC tariff
numbers. At the same time the issuing carrier revises its tariff to
reflect such a concurrence, it must file one copy of the concurrence
electronically with the Commission in accordance with the requirements
set forth in Sec. Sec. 61.13 through 61.17. The concurrence must bear
the same effective date as the date of the tariff filing reflecting the
concurrence. Carriers shall file revisions reflecting concurrences in
their tariffs on the notice period specified in Sec. 61.58.
37. Section 61.134 is revised to read as follows:
Sec. 61.134 Concurrences for through services.
An issuing carrier filing rates or regulations for through services
between points on its own system and points on another carrier's system
(or systems), or between points on another carrier's system (or
systems), must list all concurring, connecting or other participating
carriers as provided in Sec. 61.54 (f), (g), and (h). A concurring
carrier must tender a properly executed instrument of concurrence to
the issuing carrier. If rates and regulations of the other carriers
engaging in the through service(s) are not specified in the issuing
carrier's tariff, that tariff must state where the other carrier's
rates and regulations can be found. Such reference(s) must contain the
FCC number(s) of the referenced tariff publication(s), the exact
name(s) of the carrier(s) issuing such tariff publication(s), and must
clearly state how the rates and regulations in the separate
publications apply.
38. Section 61.191 is revised to read as follows:
Sec. 61.191 Carrier to file supplement when notified of suspension.
If an issuing carrier is notified by the Commission that its tariff
publication has been suspended, the carrier must file, within five
business days from the release date of the suspension order, a
consecutively numbered supplement without an effective date, which
specifies the schedules which have been suspended.
PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS
39. The authority citation for part 64 continues to read as
follows:
Authority: 47 U.S.C. 154, 254(K); secs. 403(b)(2)(B), (c), Pub.
L. 104-104, 110 Stat. 56. Interpret or apply 47 U.S.C. 201, 218,
222, 225, 226, 228, and 254(k) unless otherwise noted.
40. Section 64.709 is amended by revising paragraphs (d)(1) and
(d)(2) to read as follows:
Sec. 64.709 Informational tariffs.
* * * * *
(d) * * *
(1) The original of the cover letter shall be submitted to the
Secretary without attachments, along with FCC Form 159, and the
appropriate fee to the address set forth in Sec. 1.1105 of this
chapter.
(2) Carriers should file informational tariffs and associated
documents, such as cover letters and attachments, electronically in
accordance with Sec. Sec. 61.13 and 61.14 of this chapter.
* * * * *
[FR Doc. 2010-19580 Filed 8-10-10; 8:45 am]
BILLING CODE 6712-01-P