Common Carriers; Open Network Architecture Requirements an Nondiscrimination Safeguards

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 64

[CC Docket No. 92-256, FCC 94-58]

Common Carriers; Open Network Architecture Requirements an

Nondiscrimination Safeguards

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: The Commission adopted an order applying to GTE Corporation

the same regulatory framework of Open Network Architecture (ONA)

requirements and nondiscrimination safeguards that apply to the Bell

Operating Companies (BOCs) for GTE's participation in the enhanced

services market. Under this order, GTE will be required to file an ONA

plan within nine months of the release of this order, file federal and

state ONA tariffs three months later, and implement ONA requirements

and nondiscrimination safeguards fifteen months from the release of

this order. The Commission stated that the public interest benefits of

applying these measures to GTE amply justify its taking the next

logical step toward an overall environment that will foster a fully

competitive market for the provision of enhanced services to the

American public.

EFFECTIVE DATE: June 23, 1994.

FOR FURTHER INFORMATION CONTACT: Peggy Reitzel, Policy and Program

Planning Division, Common Carrier Bureau (202) 632-1300.

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

The requirements have been analyzed with respect to the Paperwork

Reduction Act of 1980, as amended, 44 U.S.C. Sec. Sec. 3501-20. The

information collection contained herein is not subject to the clearance

provisions of 44 U.S.C. 3507 because it is imposed on less than nine

respondents.

Regulatory Flexibility Act

In the NPRM the Commission certified that the Regulatory

Flexibility Act of 1980 did not apply to this proceeding because the

rule amendments would not have a significant economic impact on a

substantial number of small business entities, as defined by section

601(3) of the Regulatory Flexibility Act. The rule changes directly

apply only to GTE which is considered dominant in its field of

operation. Neither the Chief Counsel for Advocacy of the Small Business

Administration nor any commenting party challenged the Commission's

analysis. The Secretary of the Commission is required to send a copy of

this Report and Order, including the certification, to the Chief

Counsel for Advocacy of the Small Business Administration in accordance

with paragraph 605(b) of the regulatory Flexibility Act. Pub. L. No.

96-354, 94 Stat. 1164, 5 U.S.C. Section 601 et seq.

Summary of Report and Order

1. This is a summary of the Report and Order in Common Carrier

Docket No. 92-256, Application of Open Network Architecture and

Nondiscrimination Safeguards to GTE Corporation, adopted March 8, 1994,

and released April 4, 1994 (FCC 94-58). The full text of the

Commission's decision is available for inspection and copying, Monday

through Friday, 9 a.m.--4:30 p.m., in the FCC Reference Room (room

239), 1919 M Street, NW., Washington, DC 20554. The complete text of

the Report and Order may also be purchased from the Commission's copy

contractor, ITS, Inc., (202) 857-3800, 2100 M Street, NW., suite 140,

Washington, DC 20037.

2. Over the last eight years, the Commission established a

comprehensive regulatory framework of nonstructural safeguards,

including Open Network Architecture (ONA) requirements and

nondiscrimination safeguards, to govern the Bell Operating Companies'

(BOCs') participation in the enhanced services marketplace. Under ONA,

BOCs are required to offer unbundled ONA services to enhanced service

providers (ESPs). By requiring the BOCs to offer unbundled network

services to ESPs, ONA increases opportunities for enhanced services

providers (ESPs) to provide, and customers to receive, a wide range of

enhanced services. The nondiscrimination safeguards consist of Customer

Proprietary Network Information (CPNI) rules, Network Information

Disclosure rules, and nondiscrimination reporting requirements.

3. The Commission initially did not require local telephone

companies other than the BOCs to comply with ONA requirements and

nondiscrimination safeguards. The Commission stated that it would

revisit the issue of applying these requirements to GTE once initial

ONA implementation by the BOCs was completed. After gaining substantial

experience with the BOCs, on December 2, 1992, the Commission released

a Notice of Proposed Rulemaking (NPRM) to seek comment on its proposal

to apply to GTE the ONA requirements and nondiscrimination safeguards

that govern the BOCs' participation in the enhanced services market (57

FR 62544, Dec. 21, 1992).

4. In the Report and Order adopted March 8, 1994 (FCC 94-58), the

Commission decided that it should no longer exempt GTE from complying

with ONA requirements and nondiscrimination safeguards. The Commission

concluded that applying these measures to GTE will extend greater

access to the largest non-BOC local telephone company, thus

facilitating the provision of additional information age services and

greater price competition to consumers.

5. GTE's primary argument against the imposition of these

requirements appeared to be the implementation costs. The Commission,

however, concluded that the benefits of applying these requirements to

GTE substantially outweigh the costs involved based on GTE's estimated

implementation costs. The Commission concluded that the implementation

costs are not greatly affected by inclusion of GTE's more dispersed,

rural service areas because, according to GTE, the costs of

implementing ONA are primarily fixed costs related to modifying GTE's

centralized systems.

6. In addition, the Commission concluded that GTE, by many

measures, is one of the largest local telephone companies in the United

States. When compared to the BOCs, GTE ranks second behind BellSouth in

total operating revenue, total gross plant, and the number of

employees. While GTE has many service areas that are smaller and more

rural than those of the BOCs, it has more working loops than

Southwestern Bell even if GTE study areas with less than 200,000

working loops are excluded. GTE also serves a number of major urban

areas in Florida, California, Hawaii, and Texas, that resemble BOC

service areas. The Commission concluded that consumers in GTE's large

service areas would benefit substantially from an environment that

fosters the competitive provision of enhanced services.

7. The Commission also concluded that GTE's voluntary ONA measures,

while commendable, fall short of the BOC standards and cannot achieve

the Commission's goals. Specifically, the Commission concluded that

GTE's network disclosure and customer proprietary network information

(CPNI) programs lack certain important elements contained in the BOC's

requirements. Also, GTE's voluntary program does not include disclosure

of important information that the BOCs must report. Thus, the

Commission required GTE to implement BOC ONA requirements and comply

with the BOC nondiscrimination safeguards.

8. Based on the experience gained in implementing ONA for the BOCs,

the Commission was able to streamline this process for GTE. The

Commission referred GTE to the numerous orders in the Computer III and

ONA proceedings that provide detailed review and guidance on how it

should implement ONA. The Commission required GTE to comply with the

comparably efficient interconnection requirements and all other ONA

requirements imposed in the Computer III and ONA proceedings. The

Commission did not require that GTE detail these measures in the ONA

plan it must submit to the Commission as long as GTE's ONA program

follows specific procedures approved for the BOCs and is consistent

with requirements set out in the ONA orders. If GTE wants to request

authority to meet the requirements in a different way, it must justify

the request in its ONA plan.

9. GTE is also required to participate in the Information Industry

Liaison Committee (IILC) beginning thirty days after publication of

this Order in the Federal Register. GTE also must report to the

Commission on its progress on IILC activities as the BOCs are required

to do.

10. GTE is required to demonstrate in its ONA plan that its

proposed initial offering of ONA services will adequately meet the

needs of enhanced service providers (ESPs) in its service areas. GTE

also must comply with the ONA deployment projection reporting

requirements applicable to the BOCs. This information must be filed

with GTE's ONA plan nine months after release of this order.

Thereafter, the deployment report must be filed annually with the other

annual reports on July 31 of each year beginning July 31, 1996. GTE

will also be subject to all of the annual and semi-annual ONA reporting

requirements that are applicable to the BOCs, and the reports must be

filed on July 31 of each year beginning July 31, 1996. In addition, GTE

is required to begin providing the semi-annual tariff report that the

BOCs are required to file. The Commission required GTE to begin

providing this report to the Commission on September 30, 1995, and

every six months thereafter.

11. The Commission also required GTE to comply with the

nondiscrimination requirements that govern the BOCs' provision of

enhanced services. These nondiscrimination safeguards consist of CPNI

rules, network information disclosure rules, and nondiscrimination

reporting requirements. The Commission stated that as a Tier 1 local

exchange carrier, GTE is already fully subject to the cost accounting

safeguards adopted in the BOC Safeguards Order.

12. The Commission required GTE to comply with the CPNI

requirements established for the BOCs within fifteen months of the

release of this Order. Since GTE may need additional time to implement

password ID systems, the Commission allowed GTE two years from the

release of this order to comply with the password ID requirements. GTE

must describe in its ONA plan how it will meet the CPNI requirements

and include the CPNI notification letter it proposes to send to its

multiline business customers.

13. GTE is also required to comply with the Commission's Operations

Support Systems (OSS) requirements within fifteen months from the

release of this Order. The Commission also required GTE to comply with

the network disclosure rules effective fifteen months from the release

of this Order. GTE is not required to detail how it meets these

requirements in its ONA plan as long as GTE's procedures follow

specific procedures approved for the BOCs and are consistent with the

Commission's requirements in a specific manner already approved for the

BOCs.

14. The Commission also required GTE to comply with the

nondiscrimination reporting requirements applicable to the BOCs. In

particular, GTE must file an annual affidavit stating that it does not

discriminate in providing ONA services to competitive ESPs and their

customers, including the installation, maintenance, and quality of such

services. The annual affidavit must be signed by the officer

principally responsible for ONA service quality, installation, and

maintenance. GTE is also required to file quarterly installation and

maintenance reports using the reporting categories adopted for BOC

reports unless GTE proposes and the Commission approves a different

format for its quarterly report in GTE's ONA plan. GTE's initial

installation and maintenance report is to cover the first full calendar

quarter following the implementation date for ONA requirements and

nondiscrimination safeguards and thereafter must be filed quarterly.

The report for each calendar quarter is due thirty days after the close

of that calendar quarter. GTE's format should be consistent with the

installation and maintenance system reports required of the BOCs and

described in the BOC ONA Reconsideration Order.

GTE may, however, attempt to justify different service categories

at a comparable level of detail. The Commission delegated authority to

the Chief, Common Carrier Bureau to review and to act on any requested

changes to the reporting categories.

15. The Commission concluded that the experience it has gained from

its lengthy review of the BOCs' initial ONA plans and tariffs, as well

as from the implementation of approved BOC ONA service offerings, will

enable it to streamline the review of GTE's initial ONA service

offerings. GTE shall submit an ONA plan within nine months of the

release of this Order and shall file state and federal ONA tariffs for

its ONA services within one year of the release of this order. The

Commission required that GTE implement all ONA requirements and

nondiscrimination safeguards fifteen months after the release of this

order unless another time period is specified in the order. These

requirements include those that have been developed in the Computer III

and Computer III remand proceedings and the ONA orders, as well as any

future requirements that the Commission may establish for the BOCs,

unless GTE is specifically exempted. The tariffs will be subject to the

requirements established in the ONA proceeding and the federal tariffs

will also be subject to the pricing and other requirements of CC Docket

No. 89-79, relating to the creation of access charge subelements and

cost support requirements for ONA. GTE must amend its initial federal

ONA tariff to include any additional requirements that are adopted so

close to the GTE tariff filing date that they cannot be reflected in

the initial tariff filing as soon as possible during the three month

public notice period.

16. The Commission described filing dates in this order as being a

certain number of months after a particular event. In such cases the

filing or other such date will be the same day of the month as the

triggering event, but the specified number of months later. Months

shall be counted beginning with the month after the one in which the

triggering event occurs. Filing dates falling on a weekend or official

federal government holiday will be moved to the next business day.

17. Finally, the Commission adopted the same preemption of state

network disclosure requirements for GTE that was established for the

BOCs in the BOC Safeguards Order. The Commission determined that no

other modification to the preemption of state requirements adopted in

the BOC Safeguards Order was warranted.

Ordering Clauses

18. Accordingly, It is ordered, that pursuant to Sections 1, 4 (i)

and (j), 201-205, 218, 220 & 404 of the Communications Act of 1934, as

amended, 47 U.S.C. 151, 154 (i) & (j), 201-205, 218, 220 & 404, and

Section 553 of the Administrative Procedure Act, 5 U.S.C., 553, that

the policies, rules, and requirements set forth herein are adopted.

19. It is further ordered, That GTE shall file an ONA plan nine

months after release of this Order.

20. It is further ordered, That GTE shall file ONA tariffs three

months after the date for filing the ONA plan. The federal tariffs

shall be scheduled to become effective on three months public notice.

21. It is further ordered, That GTE shall implement ONA

requirements and nondiscrimination safeguards within fifteen months

from the release of this Order.

22. It is further ordered, That GTE shall provide the reports

described herein.

23. It is further ordered, That GTE shall comply with the CPNI

password ID requirements within two years from the release of this

Order.

24. It is further ordered, That the petition to expand the scope of

this proceeding filed by North American Telecommunications Association

(NATA) is denied.

25. It is further ordered, That the decisions in this Report and

Order shall be effective thirty days after publication in the Federal

Register.

List of Subjects in 47 CFR Part 64

Communications common carriers, Reporting and recordkeeping

requirements, Telephone, Computer technology.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

[FR Doc. 94-12603 Filed 5-23-94; 8:45 am]

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