Revision of Filing Requirements

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 43, 63, 64, and 65

[CC Docket No. 96-23, FCC 96-64]

Revision of Filing Requirements

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: In this Notice of Proposed Rulemaking, the Commission proposes

to eliminate thirteen reporting requirements and to reduce the

frequency of six other reporting requirements. These reporting

requirements are variously applicable to interexchange carriers, Bell

Operating Companies, other local telephone companies, and record

carriers. These proposed actions will improve the quality of

information available to the Commission, while at the same time

reducing the reporting burdens imposed on carriers.

DATES: Comments must be submitted on or before April 8, 1996. Reply

Comments must be filed on or before April 23, 1996. Written comments by

the public on the proposed and/or modified information collections are

due on or before April 8, 1996. Written comments must be submitted by

the Office of Management and Budget (OMB) on the proposed and/or

modified information collections on or before May 13, 1996.

ADDRESSES: Comments and reply comments should be sent to Office of the

Secretary, Federal Communications Commission, 1919 M Street, N.W., Room

222, Washington, D.C. 20554, with a copy to Nasir Khilji of the Common

Carrier Bureau, 2033 M Street, N.W., Room 500F, Washington, D.C. 20554.

Parties should also file one copy of any documents filed in this docket

with the Commission's copy contractor, International Transcription

Services, Inc., 2100 M Street, N.W., Suite 140, Washington, D.C. 20037.

In addition to filing comments with the Secretary, a copy of any

comments on the information collections contained herein should be

submitted to Dorothy Conway, Federal Communications Commission, Room

234, 1919 M Street, N.W., Washington, DC 20554, or via the Internet to

[email protected], and to Timothy Fain, OMB Desk Officer, 10236 NEOB,

725-17th Street, N.W., Washington, DC 20503 or via the Internet to

[email protected].

FOR FURTHER INFORMATION CONTACT: Nasir Khilji (202) 418-0958, Common

Carrier Bureau, Industry Analysis Division. For additional information

concerning the information collections contained in this NPRM contact

Dorothy Conway at 202-418-0217, or via the Internet at [email protected].

SUPPLEMENTARY INFORMATION:

Synopsis of Notice of Proposed Rulemaking

This is a synopsis of the Commission's Notice of Proposed

Rulemaking in CC Docket No. 96-23, adopted February 20, 1996, and

released February 27, 1996. The full text of this Notice of Proposed

Rulemaking is available for inspection and copying during normal

business hours in the FCC Dockets Branch, Room 230, 1919 M Street,

N.W., Washington, D.C. The complete text may be purchased from the

Commission's copy contractor, International Transcription Service,

Inc., 2100 M Street, N.W., Suite 1400, Washington, D.C. 20037

(telephone (202) 857-3800).

Paperwork Reduction Act: This NPRM contains either a proposed or

modified information collection. 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 collections contained in this NPRM, as required by the

Paperwork Reduction Act of 1995, Pub. L. No. 104-13. Public and agency

comments are due at the same time as other comments on this NPRM; OMB

comments are due 60 days from date of publication of this NPRM in the

Federal Register. Comments should address: (a) whether the proposed

collection of information is necessary for the proper performance of

the functions of the Commission, including whether the information

shall have practical utility; (b) the accuracy of the Commission's

burden estimates; (c) ways to enhance the quality, utility, and clarity

of the information collected; and (d) ways to minimize the burden of

the collection of information on the respondents, including the use of

automated collection techniques or other forms of information

technology.

OMB Approval Number: None.

Title: Revision of Filing requirements.

Form No.: FCC Report 43.05, FCC 492.

Type of Review: New Collection.

Respondents: Business or other for profit.

[[Page 10523]]

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Estimated Total

Title No. of time per annual

respondents response burden

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1. Circuit Report........................................................ 0 0 0

2. Record Carrier Letter................................................. 0 0 0

3. Report on Inside Wiring Services...................................... 0 0 0

4. ARMIS Service Quality Report, FCC Report 43-05........................ 27 833 44,982

5. FCC 492, Rate of Return Report........................................ 35 8 280

6. New Service Tracking Report........................................... 16 20 104

7. Report of Unsecured Credit to Political Candidates.................... 13 8 104

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Total Annual Burden: 45,686.

Needs and Uses: The Commission proposes to eliminate thirteen

reporting requirements and to reduce the frequency of six reporting

requirements variously applicable to Regional Bell Operating Companies,

other local telephone companies, record carriers, AT&T, and Sprint. The

requirements identified above are subject to the Paperwork Reduction

Act of 1995. The information received will be used to assist the

Federal Communications Commission in performing its public oversight

duties.

I. Summary and Background

1. As part of the President's Regulatory Reform Initiative, each

federal agency was asked to lessen the regulatory burden on the public

by reducing the amount of information the public must provide each

agency.

2. The Commission conducted a review of all reports filed with the

Common Carrier Bureau, including reports not subject to the Paperwork

Reduction Act. As a result of that review, the Commission identified

reporting requirements that can be eliminated or be reduced in

frequency. The Commission proposed to eliminate or reduce in frequency

the following reports:

II. Elimination of Reports

3. Divestiture Reports: On June 14, 1995, the Bureau issued a

Public Notice (``Common Carrier Bureau Solicits Comments on Elimination

of Divestiture Reports,'' Public Notice CC 95-34, June 14, 1995)

soliciting comments on the need to continue several reports established

at the time of the AT&T divestiture [96 FCC 2d 18 (1983), modified, 98

FCC 2d 141 (1984)], that the Bureau determined no longer met the

intended monitoring requirements. As a result of the Bureau's review of

regulations and reporting requirements and the favorable comments filed

pursuant to the Public Notice, the Commission proposed to eliminate the

following reports:

A. Equal Access Progress Report: This report is submitted semi-

annually by AT&T and Regional Holding Companies under Condition 3, AT&T

Divestiture Order.

B. Construction Budget Summary: Condition 10 of the AT&T

Divestiture Order required AT&T and Regional Holding Companies to

submit an annual financial summary of telecommunications facility

construction activity.

C. National Security and Emergency Preparedness Effectiveness: This

report is submitted annually by AT&T and Bellcore under Condition 12,

AT&T Divestiture Order. It lists activities by the carriers to support

national security.

4. AT&T Customer Premises Equipment (CPE) Installation and

Maintenance Report: This report is submitted quarterly by AT&T pursuant

to Furnishing of Customer Premises Equipment and Enhanced Services by

American Telephone and Telegraph Co. [102 FCC 2d 655, (1985), also 104

FCC 2d 739, (1986)]. The report contains the percentage of lines/

circuits not installed by the relevant due date for telephone company

reasons, as well as the percentage of lines/circuits ordered by

unaffiliated vendors. The original purpose of the report was to protect

competitors by monitoring AT&T's installation and maintenance of lines/

circuits to ensure that it is not discriminating against unaffiliated

CPE vendors. In 1991, the Commission eliminated nondiscrimination

reporting for those AT&T network services subject to maximum

streamlined regulation. In 1993, the Commission added AT&T's 800

services to the list of services subject to streamlined treatment.

Since December 1993, AT&T has only provided installation and

maintenance nondiscrimination reports regarding CPE and enhanced

services for analog private line services. Because customer use of such

services has diminished with the increasing introduction of digital

applications, there has been very little reporting activity since 1993.

Therefore, the Commission proposed to eliminate nondiscrimination

reporting requirements regarding both CPE and enhanced services with

respect to the few AT&T services still subject to them.

5. AT&T Service Quality: Equipment Blockage and Failure Report:

This semi-annual report is submitted by AT&T pursuant to Policies and

Rules Regarding Rates for Dominant Carriers [6 FCC Rcd. 2974, (1991)].

The report's objective was to provide the Commission the means to

monitor and ensure that service quality at equal access exchanges is

comparable to service quality at non-equal access exchanges. Because at

the end of 1994, approximately 98% of the nation's lines had been

converted to equal access (in contrast to 86% in 1989), this report is

no longer relevant for the purposes originally intended. Therefore the

Commission proposed to eliminate it.

6. AT&T Nondiscrimination Report for Enhanced Services Providers:

AT&T submits this report on a quarterly basis pursuant to Amendment of

Section 64.702 of the Commission's Rules and Regulations, (``Third

Computer Inquiry'') [52 FR 20714, June 3, 1987]. In these reports, AT&T

must compare the level of service provided to enhanced service

affiliates with that provided to enhanced service competitors. As

discussed above, following the Commission's orders streamlining the

regulation of AT&T's services, very few AT&T services remain subject to

enhanced services nondiscrimination reporting, and those few are so

rarely used that this reporting requirement was proposed to be

eliminated.

7. BOC Customer Premises Equipment (CPE) Installation and

Maintenance Report; BOC Customer Premises Equipment Affidavits for Non-

Discriminatory Provision of Network Maintenance: The BOC CPE

installation and maintenance report is a quarterly report required by

Furnishing of Customer Premises Equipment by the Bell Operating

Telephone Companies and the Independent Telephone Companies [52 FR

2226, January 21, 1987]. The Report compares the number and/or

percentage of lines/circuits not installed by the BOC by the requested

date for affiliated and unaffiliated CPE vendors, so that the FCC may

monitor whether the BOCs are discriminating

[[Page 10524]]

against unaffiliated CPE vendors with respect to installation and

maintenance. As an alternative to submitting a quarterly CPE

maintenance report described above, a BOC may instead submit an annual

affidavit certifying that it has not discriminated in the provision of

network installation and maintenance. The Commission originally adopted

this alternative maintenance certification scheme in the belief that it

was unlikely that BOCs could or would discriminate based on the

identity of the CPE vendor in providing network maintenance services.

8. In the eight years since the Commission established the

foregoing nondiscrimination reporting and alternative affidavit

requirements, the Commission received no formal complaints from any

party alleging unlawful discrimination by a BOC in the provision of

installation and maintenance services. The Commission proposed the

elimination of these requirements in light of regulatory alternatives

and burdens imposed on carriers and solicited comment on the costs and

benefits of eliminating the foregoing requirements.

9. BOC Sales Agency Program and Vendor Support Program Report: This

report is submitted annually by each BOC pursuant to the BOC CPE Relief

Order [2 FCC Rcd 156]. The report contains information on the Bell

Operating Companies' sales agency programs and vendor sales activity.

The original purpose of the report was to ensure that the BOCs provide

independent CPE vendors with meaningful opportunities to market their

CPE jointly with BOC network services. At the present time, these sales

agency reports are not generally used by independent CPE vendors, and

that, therefore, they may not as a practical matter serve the purposes

for which they were intended. Accordingly, the Commission proposed to

eliminate the requirement to file these reports.

10. Billing and Collection Contracts: This report is submitted by

local exchange carriers (LECs) on an as-needed basis pursuant to the

Common Carrier Bureau's Public Notice released in CC Docket No. 85-88

[2 FCC Rcd 809 (Com. Car. Bur. 1987)]. Each LEC provides a list of all

billing and collection contracts under which it provides such services.

From time to time as necessary, the LEC updates the list on file with

the Commission. As LECs previously enjoyed a virtual monopoly on

certain information necessary for the billing and collection of end-

users, this service was in the past subject to tariff. However, as non-

LECs gained access to such information and the service became more

competitive, the Commission relaxed the tariff requirement and simply

required these LECs to file lists of those contracts. Because such

lists are seldom used by the staff or the public the Commission

proposed to eliminate this reporting requirement entirely.

11. Circuit Report: Section 63.07(b) of the rules requires non-

dominant carriers that construct or acquire initial or additional

circuits to file a report concerning these circuits semi-annually on

February 1 and August 1 of each year. These reports provide information

on interstate communications facilities constructed and operated by

nondominant carriers. This information permits the Commission to

perform a public interest assessment of the facilities investments of

these carriers, as envisioned in its Competitive Carrier Proceeding [45

FR 76148, November 18, 1980]. As a practical matter, it is no longer

necessary to require these reports on a routine basis from all

nondominant carriers. Instead, the Commission can obtain this

information in individual instances when a direct regulatory need for

it arises. Accordingly, the Commission proposed the elimination of the

present requirement that nondominant carriers file semi-annual circuit

reports.

12. Record Carrier Letter: Each record carrier with operating

revenues over $75 million for a calendar year is required, under

Section 43.21(d) of the Commission's Rules, to file a letter showing

selected balance sheet and income items for that year with the Common

Carrier Bureau Chief. The financial statement summary provides an

indication of record carrier business. In the 1950s, 80 percent of

international traffic was handled by record carriers. In 1994 this

report was filed by two carriers representing 2 percent of the market.

For 1995 it is anticipated that only one carrier will file. The

Commission tentatively concluded that this report was no longer needed

and proposed to eliminate it.

13. Report on Inside Wiring Services: This report is submitted by

each local exchange carrier with annual operating revenues of $100

million or more under Section 43.41 of the Commission's Rules. This

rule applies only to the local exchange carrier serving the greatest

number of access lines within the portions of the state that are, or

would be, subject to the state regulation.

14. The report contains copies of any state or local statute,

order, rule, law or other documents that regulate or propose to

regulate local exchange carrier prices for inside wiring services. This

reporting requirement was established to gain information about

regulations at the state level and their potential impact on federal

wiring policy. The Commission sought comment on eliminating this

report.

III. Reduction of Reporting Frequency

15. Armis Service Quality Report 43-05: These reports are submitted

quarterly by every local exchange carrier for which price cap

regulation is mandatory and for every local exchange carrier that

elects to be covered by the price cap rules. This report was

established to enable the Commission to observe the success of

incentive regulation and to become aware of any reduction of service

quality or infrastructure investment. The states have been increasingly

active in monitoring the quality of service. The Commission concluded

that there was no need to require this report on a quarterly basis and

proposed requiring the report to be submitted semi-annually.

16. Form 492: Rate of Return Report: This report is submitted

quarterly by non price cap companies (Non Price Cap LECS) and NECA. The

report is one page in length and contains total revenues, total

expenses and taxes, operating income and the rate base for each

company. While the Commission felt that the data was still needed to

ensure that non price cap companies do not exceed the authorized rate

of return, it determined that this purpose could also be accomplished

by reducing the report's frequency. The Commission proposed requiring

this report annually.

17. Joint Board Monitoring Program--Pooling: This report is

submitted by NECA on a monthly (summary of pool results), and an annual

(long term support) basis under Sections 69.605 and 69.612 of the

Commission's Rules. The report contains NECA pooling data and long-term

support data. It was established to keep track of subsidy flows and

administrative costs of administering the subsidies. These purposes can

still be accomplished by quarterly submissions. The Commission

therefore proposed to reduce the frequency of this report to a

quarterly submission.

18. New Service Tracking Report: This report is submitted quarterly

by LECs subject to price cap regulation, under requirements imposed by

the Commission. These reports are employed to conduct studies to

determine reliability of price cap carrier new service projections. The

Commission determined that while the data was still needed, this

purpose could be accomplished by reducing the

[[Page 10525]]

reporting frequency. Therefore, it proposed reducing the frequency of

this submission to an annual report.

19. Payphone Compensation: This report is required to be submitted

quarterly by AT&T and Sprint under a waiver granted in connection with

CC Docket No. 91-35 [CC Docket No. 91-35, 10 FCC Rcd 1590 (1994); 10

FCC Rcd 5490 (1995)]. The report consists of a brief paragraph

delineating the names and amounts of compensation paid to private

payphone operators for interstate traffic that originated from those

payphones. This requirement was established to monitor pay-phone

compensation paid on a different basis than that provided for in the

Docket. This report will only be needed until the conclusion of the

payphone compensation rulemaking within the next two years and the

burden is minimal. The Commission determined that the frequency of this

report could be reduced and proposed a semi-annual submission.

20. Report of Unsecured Credit to Political Candidates: This report

is submitted semi-annually by all carriers having operating revenues in

excess of $1 million for the preceeding year. It shows, by account, any

amount due and unpaid as of the end of the month prior to the reporting

date for interstate and for communications services rendered by or on

behalf of candidates for Federal office, when such amount results from

the extension of unsecured credit. The reporting requirement was

established pursuant to Section 401 of the Federal Election Campaign

Act of 1971. This report serves as a check on the implied contributions

by carriers to candidates for Federal office. The Commission solicited

comment on whether a reduced frequency could accomplish the same

objective. It proposed to reduce the frequency of this report and

instead require that it be submitted annually if there was a reasonable

basis in the record for concluding that this would sufficiently meet

the purposes of the Federal Election Campaign Act of 1971.

IV. Procedural Rules

21. The Commission believed that it would facilitate resolution of

the issues raised in this proceeding to provide that the Chief, Common

Carrier Bureau, acting pursuant to delegated authority, would determine

whether to adopt the proposals set forth in this Notice of Proposed

Rulemaking. It delegated to the Chief of the Common Carrier Bureau the

authority to issue any necessary reports or orders arising from this

rulemaking proceeding. Therefore, in that regard, it waived, for this

proceeding only, Section 0.291(h) of the Commission's Rules, 47 CFR

0.291(h), which prohibits the Chief of the Common Carrier Bureau from

issuing reports or orders arising from a proposed rulemaking.

22. Initial Regulatory Flexibility Analysis. This was not required

as there were no small entities affected by the proposals described in

this document.

23. Ex Parte Rules Non-Restricted Proceeding. This is a non-

restricted notice and comment rulemaking. See 47 CFR 1.399 et seq. Ex

Parte presentations are permitted, except during the Sunshine Agenda

period, provided they are disclosed as provided in Commission rules.

See generally 47 CFR 1.1202, 1.1203, and 1.1206(a).

24. Comment Filing Dates. Pursuant to applicable procedures set

forth in Sections 1.399 and 1.411 et seq. of the Commission's rules, 47

CFR 1.399 and 1.411 et seq., interested parties may file comments with

the Secretary, Federal Communications Commission, Washington, D.C.

20554 on or before April 8, 1996, and reply comments on or before April

23, 1996. To file formally in this proceeding, participants must file

an original and four copies of all comments, reply comments, and

supporting comments. If participants want each Commissioner to receive

a personal copy of their comments, an original plus nine copies must be

filed. Parties should also file one copy of any documents filed in this

docket with the Commission's copy contractor, International

Transcription Services, Room 140, 2100 M Street N.W., Washington, D.C.

20037. Parties should also submit one copy of any documents filed in

this docket with Nasir Khilji, Industry Analysis Division, Common

Carrier Bureau, Room 500F, 2033 M Street, N.W., Washington, D.C. 20554.

Comments and reply comments will be available for public inspection

during regular business hours in the FCC Reference Center (Room 239) of

the Federal Communications Commission, 1919 M Street, N.W., Washington,

D.C. 20554.

V. Ordering Clauses

25. Accordingly, it is ordered, pursuant to Sections 1, 4(i), 4(j),

201-205, 218, 226, and 303(r) of the Communications Act of 1934, as

amended, 47 U.S.C. 151, 154(i), 154(j), 201-205, 218, 226, 303(r), that

a Notice of Proposed Rule Making is issued, proposing the amendment of

various Commission's rules as set forth below.

26. It is further ordered, that the Chief of the Common Carrier

Bureau is delegated authority to issue any necessary reports or orders

arising from this rulemaking proceeding. It is further ordered, that

for this proceeding and for the purposes described above, Section

0.291(h) of the Commission's Rules, 47 CFR 0.291(h), waived.

27. It is further ordered, That the Secretary shall mail a copy of

this Notice of Proposed Rule Making to the Chief Counsel for Advocacy

of the Small Business Administration, in accordance with section 603(a)

of the Regulatory Flexibility Act, 5 U.S.C. 603(a). The Secretary shall

also cause a summary of this Notice to appear in the Federal Register.

List of Subjects

47 CFR Part 43

Communications common carriers, Reporting and recordkeeping

requirements, Telegraph, Telephone.

47 CFR Part 63

Communications common carriers, Reporting and recordkeeping

requirements, Telephone.

47 CFR Part 64

Communications common carriers, Reporting and recordkeping

requirements, Telephone, Credit, Political candidate.

47 CFR Part 65

Communications common carriers, Reporting and record-keeping

requirements, Telephone.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

Rule Changes

Parts 43, 63, 64, and 65 of title 47 of the code of federal

regulations are proposed to be amended as follows:

PART 43--REPORTS OF COMMUNICATION COMMON CARRIERS AND CERTAIN

AFFILIATES

1. The authority citation for Part 43 continues to read as follows:

Authority: Sections 4(i), 4(j), 201-205, 303(r) and 403 of the

Communications Act of 1934, 47 U.S.C. 154(i), 154(j), 201-205,

303(r), 403, unless otherwise noted.

2. Paragraph (d) of Sec. 43.21 is revised to read as follows:

Sec. 43.21 Annual reports of carriers and certain affiliates.

* * * * *

(d) Each miscellaneous common carrier (as defined by Sec. 21.1 of

this chapter) with operating revenues over $100 million for a calender

year shall file with the Common Carrier Bureau Chief a letter showing

its operating revenues for that year and the value of

[[Page 10526]]

its total communications plant at the end of that year. This letter

must be filed by March 31 of the following year.

* * * * *

3. Section 43.41 is removed and reserved.

PART 63--EXTENSION OF LINES AND DISCONTINUANCE, REDUCTION, OUTAGE

AND IMPAIRMENT OF SERVICE BY COMMON CARRIER; AND GRANTS OF

RECOGNIZED PRIVATE OPERATING AGENCY STATUS

4.The authority citation for Part 63 continues to read as follows:

Authority: Sections 4(i), 4(j), 201-205, 303(r) and 403 of the

Communications Act of 1934, 47 U.S.C. 154(i), 154(j), 201-205,

303(r), 403, unless otherwise noted.

5. Section 63.07 is amended by removing paragraph (b) and

redesignating paragraph (c) as paragraph (b).

PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS

6. The authority citation for Part 64 continues to read as follows:

Authority: Sections 4(i), 4(j), 201-205, 303(r) and 403 of the

Communications Act of 1934, 47 U.S.C. 154(i), 154(j), 201-205,

303(r), 403, unless otherwise noted.

7. Section 64.804 is amended by revising the first sentence of

introductory paragraph (g) to read as follows:

Sec. 64.804 Rules governing the extension of unsecured credit to

candidates or persons on behalf of such candidates for Federal office

for interstate and foreign common carrier communication services.

* * * * *

(g) On or before January 31, 1997, and the corresponding date of

each year thereafter, each carrier which had operating revenues in the

preceeding year in excess of $1 million shall file with the Commission

a report by account of any amount due and unpaid, as of the end of the

month prior to the reporting date, for interstate and foreign

communication services rendered to a candidate or person on behalf of

such candidate when such amount results from the extension of unsecured

credit.* * *

* * * * *

PART 65--INTERSTATE RATE OF RETURN PRESCRIPTION PROCEDURES AND

METHODOLOGIES

8. The authority citation for Part 65 continues to read as follows:

Authority: Sections 4(i), 4(j), 201-205, 303(r) and 403 of the

Communications Act of 1934, 47 U.S.C. 154(i), 154(j), 201-205,

303(r), 403, unless otherwise noted.

9. Section 65.600 is amended by revising paragraph (b) to read as

follows:

Sec. 65.600 Rate of return reports.

* * * * *

(b) Each local exchange carrier or group of affiliated carriers

which is not subject to Secs. 61.41 through 61.49 of this chapter and

which has filed individual access tariffs during the preceding

enforcement period shall file with the Commission within three (3)

months after the end of each calender year, an annual rate of return

monitoring report. Each report shall contain two parts. The first part

shall contain rate of return information on a cumulative basis from the

start of the enforcement period through the end of the year being

reported. The second part shall contain similar information for the

most recent year. The final annual monitoring report for the entire

enforcement period shall be considered the enforcement period report.

Reports shall be filed on the appropriate report form prescribed by the

Commission (see Sec. 1.795 of this chapter) and shall provide full and

specific answers to all questions propounded and information requested

in the currently effective report form. The number of copies to be

filed shall be specified in the applicable report form. At least one

copy of the report shall be signed on the signature page by the

responsible officer. A copy of each report shall be retained in the

principal office of the respondent and shall be filed in such manner as

to be readily available for reference and inspection. Final adjustments

to the enforcement period report shall be made within fifteen (15)

months following the enforcement period to ensure that any refunds can

be properly reflected in an annual access filing.

* * * * *

[FR Doc. 96-6199 Filed 3-13-96; 8:45 am]

BILLING CODE 6712-01-P