International Accounting Rates Reform

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Chapter I

[FCC 96-37]

International Accounting Rates Reform

AGENCY: Federal Communications Commission.

ACTION: Final rule; policy statement.

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SUMMARY: On January 31, 1996, the Federal Communications Commission

adopted a Policy Statement (FCC 96-37) which sets forth a shift in its

policies on international accounting rates. With these changes the

Commission seeks to encourage competition in the U.S. market for global

telecommunications services and technological innovation.

EFFECTIVE DATE: March 19, 1996.

FOR FURTHER INFORMATION CONTACT: Maureen C. McLaughlin, Attorney-

Advisor, Policy and Facilities Branch, Telecommunications Division,

International Bureau, (202) 418-1470.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Policy

Statement adopted and released on January 31, 1996. The full text of

this Policy Statement is available for inspection and copying during

normal business hours in the FCC's International Bureau's Public

Reference Center, Room 102 of the Federal Communications Commission,

2000 M Street, N.W., Washington, D.C. 20554.

In light of this Policy Statement, the Commission also released a

Public Notice wherein requested the submission of supplemental comments

[[Page 11164]]

and reply comments. (FCC Public Notice, DA 96-105, released January 31,

1996.) (In response to requests for extension of time, the Commission

subsequently revised the supplemental comment and reply period. (FCC

Public Notice DA 96-177 and FCC Public Notice DA 96-291, published

elsewhere in this issue.)) In the Public Notice, the Commission

requested that these supplemental comments should be filed in CC Docket

No. 90-337, Phase II, In the Matter of Regulation of International

Accounting Rates (Second Further Notice of Proposed Rulemaking) (58 FR

3522, Jan. 11, 1993).

Summary of Policy Statement

1. With this Policy Statement the Commission introduces flexibility

into its approach to the regulation of international accounting rates.

Specifically, the Commission is refocusing its regulatory approach to

accounting rates in three ways:

2. First, it will increase regulatory support for new services that

increase competitive pressure in the international market.

3. Second, it plans to tailor its accounting rates policies to

reflect different market conditions such as: 1) monopoly or highly

concentrated markets, 2) effectively competitive markets, and 3)

developing countries' markets. In countries where a monopoly supplier,

or supplier with significant market power, provides telecommunications

services, the Commission will strengthen its existing accounting rates

policies to encourage lower accounting rates. In countries with

effective competition, the Commission will give U.S. carriers the

flexibility to negotiate alternative settlement arrangements, even if

they require a waiver of traditional Commission accounting rate

policies. The Commission will also explore mechanisms specifically

designed to assist developing countries during the transition to more

competitive markets and lower accounting rates.

4. Finally it plans to restructure the benchmarks by which it

measures progress in this area and will invite carriers to identify

those foreign administrations most reluctant to lower accounting rates.

Ordering Clause

1. It is ordered that, pursuant to Sections 1, 4, 201-205, 211,

215, 218-220, and 303 of the Communications Act of 1934, as amended, 47

U.S.C. Sections 151, 154, 201-205, 211, 215, 218-220, and 303, this

Policy Statement is Adopted, and March 19, 1996.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

[FR Doc. 96-5188 Filed 3-18-96; 8:45 am]

BILLING CODE 6712-01-P