Local Competition Survey

FEDERAL COMMUNICATIONS COMMISSION

[CC Docket No. 91-141; DA 98-839]

Local Competition Survey

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: On May 8, 1998, the Common Carrier Bureau issued a Public

Notice to solicit comment on how the Commission can collect sufficient

information about local competition to achieve the regulatory

flexibility, pro-competition, and universal service objectives of the

Telecommunications Act of 1996 (1996 Act) while minimizing filing

burdens on respondents. The Public Notice seeks comment on what

information should be collected as well as on such issues as whether

periodic data collection should be mandatory and which

telecommunications carriers should provide information.

DATES: Comments to the Public Notice are due on or before June 7, 1998.

Reply comments are due on or before June 22, 1998.

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

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

Suite 222, Washington, D.C. 20554, with a copy to Ms. Terry Conway of

the Common Carrier Bureau, Federal Communications Commission, 2033 M

Street, N.W., Suite 500, 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. (ITS), 1231 20th St., NW, Washington, DC 20036, (202) 857-3800.

FOR FURTHER INFORMATION CONTACT: Thomas J. Beers, Deputy Chief of the

Industry Analysis Division, Common Carrier Bureau, at (202) 418-0952,

or Ellen Burton, Industry Analysis Division, Common Carrier Bureau, at

(202) 418-0958. Users of TTY equipment may call (202) 418-0484.

SUPPLEMENTARY INFORMATION: This is a summary of the Bureau's Public

Notice released May 8, 1998 (DA 98-839). The full text of this Public

Notice is available for inspection and copying during normal business

hours in the FCC Reference Center, Room 239, 1919 M Street, Washington,

D.C. 20554. The complete text also may be purchased from the

Commission's copy contractor, International Transcription Service,

Inc., (202) 857-3800, 1231 20th St., NW, Washington, DC 20036.

Summary of the Public Notice

The Commission requires timely and reliable information on the pace

and extent of development of competition for local telecommunications

services in different geographic markets to evaluate the effectiveness

of decisions taken to implement the pro-competition provisions and to

achieve the universal service goals of the Telecommunication Act of

1996 (47 U.S.C. Section 151 et seq.). The Commission also requires such

information to identify services and geographic markets where local

competition has developed sufficiently to allow the Commission to

exercise its regulatory forbearance authority (47 U.S.C. Section

160(a)).

The Commission has previously concluded (Expanded Interconnection

with Local Telephone Company Facilities, Memorandum Opinion and Order,

59 FR 38922 (August 1, 1994), CC Docket No. 91-141, 9 FCC Rcd 5154,

5177 (1994)) that an information collection program is necessary to

monitor the state of local competition in diverse areas of the country

so that the Commission might make its regulatory requirements more

flexible as competition develops in particular areas. The Commission

delegated authority to the Chief, Common Carrier Bureau, to formulate

the detailed elements of a reporting program, to decide which service

providers must provide information, and to specify the format and

timing of reports.

I. Background

3. Only a limited amount of information on the state of local

competition can be derived from sources currently reported to the

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Commission. These data are nationwide local service revenues reported

by calendar year. Although these data are filed by all carriers,

including new competitive local exchange carriers, the data are not

available for analysis by Commission staff until several months after

filing; consist only of nationwide aggregates; and are generally given

confidential treatment. A summary of this information is published, a

few months thereafter, in a form that maintains the confidentiality of

revenues of individual companies. Additional data on the state of local

competition in selected states, and in particular cities and regions

within those states, have been submitted to the Commission in various

proceedings, e.g., in the course of regional Bell company applications

for authorization to provide in-region interLATA services. These data

provide significant information related to local competition in the

state for which, and at the time, an interLATA services petition is

filed. Because they are submitted only by the petitioner, however,

these data do not constitute a comprehensive survey of local

competition in that state. Nor do they describe the extent of

development of local competition across the country at any point in

time.

II. Discussion

4. The Public Notice seeks comment on adopting a local competition

survey similar to a survey completed--on a voluntary basis--by nine

large incumbent local exchange carriers in March, 1998, and seeks

comment on applying such a survey to all types of local exchange

carriers, both incumbent carriers and competitive carriers. We propose

to make any survey that we adopt mandatory for most carriers because we

believe that an accurate and timely picture of the development of local

competition and the achievement of universal service goals requires a

limited set of information from substantially all local exchange

carriers.

5. We also seek comment on whether there are authoritative data

sources other than a periodic survey that could provide information

necessary to evaluate the development of local competition and the

achievement of universal service goals on a timely basis. We invite

parties to identify publicly available alternative sources of any or

all of the data discussed in the Public Notice. We ask parties

proposing alternative data sources to identify those sources precisely

and to explain in detail how those sources provide information that is

accurate, sufficient, and timely to describe and understand the state

of local competition in diverse areas of the country.

6. We invite comment on the definition of reporting areas and

propose that the states should be the geographic reporting areas for

local competition surveys. We also invite comment on whether the

following items are both necessary and sufficient to describe and

understand the state of local competition in diverse areas of the

nation: number of local service lines sold directly to end users by the

reporting carrier; number of local service lines sold to competing

local carriers for resale; number of unbundled loops and unbundled

switch ports for local access lines provided by the reporting carrier

to an unaffiliated carrier; number of unaffiliated, competing local

exchange carriers purchasing unbundled network elements and resold

lines; number of wire centers where competitors have physical or

virtual collocation arrangements, and number and type of customer lines

served; switched minutes originated with end users, terminated with end

users, and exchanged with other carriers; number of telephone numbers

ported by interim or long-term portability methods; and names of

competitive local exchange carriers active in the reporting area.

7. We seek comment on whether each incumbent local exchange carrier

should file a local competition survey for each area in which it is an

incumbent local exchange carrier. Because it is our objective to

minimize reporting burdens, while collecting information sufficient to

understand developing local exchange and exchange access competition in

diverse areas of the country, we also seek comment on whether some

subset of incumbent local exchange carriers should file local

competition surveys, and, if so, on the appropriate basis for

determining the composition of that subset of incumbent local exchange

carriers.

8. To the extent that a competitor provides service to customers

using its own loops and switches, these lines will not be included in

any data collected by incumbents. Whether a competitive local exchange

carrier serves customers over its own facilities, by means of unbundled

network elements, or through resale, moreover, data provided directly

by competitive local exchange carriers about their own customers would

be extremely valuable as a cross-check to data provided by incumbent

local exchange carriers, and should provide a much more specific

snapshot of local competition. We therefore seek comment on whether

carriers other than incumbent local exchange carriers should file local

competition surveys if such carriers propose to provide--or are

providing--local exchange or exchange access service as duly authorized

competitive local exchange carriers. Consistent with this need for

adequate information, we propose not to distinguish among local

exchange carriers on the basis of the technology used to provide local

exchange or exchange access service to the public.

9. We also seek comment on whether local exchange carriers other

than incumbent local exchange carriers should report the same data, in

the same form, that incumbent local exchange carriers report.

Competitive local exchange carriers need not develop their business

plans, conduct their operations, design their networks, or select

geographic areas to serve in the same manner as incumbent local

exchange carriers have done. Also, the 1996 Act places less extensive

responsibilities on local exchange carriers other than incumbent local

exchange carriers.

10. We propose that carriers file the survey quarterly, 30 days

after the end of the calendar year quarter, through the first quarter

of 2001, which will mark a date five years after the enactment of the

1996 Act. Prior to that date, we propose to undertake a review of the

efficacy and burden imposed of this data collection to determine the

need and form for any data collection efforts after that date.

III. Procedural Issues

11. Procedures for Filing. Interested parties may file comments in

CC Docket No. 91-141 on or before June 7, 1998. Reply comments may be

filed on or before June 22, 1998. All filings should refer to the

pleadings as Local Competition Survey, CC Docket No. 91-141, CCB-IAD

File No. 98-102. One original and four copies of all comments must be

sent to Magalie Roman Salas, Secretary, Federal Communications

Commission, 1919 M Street, N.W., Suite 222, Washington, D.C. 20554.

Three copies should also be sent to Ms. Terry Conway, Industry Analysis

Division, Common Carrier Bureau, 2033 M Street, N.W., Suite 500,

Washington, D.C. 20554. Copies of documents filed with the Commission

may be obtained from the International Transcription Service (ITS),

1231 20th Street, N.W., Washington, D.C. 20036, (202) 857-3800.

Documents are also available for review and copying at the Reference

Center, Room 239, 1919 M Street, N.W., Washington, D.C., Monday, from

9:45 a.m. to 4:30 p.m., and Tuesday through Friday from 9:00 a.m. to

4:30 p.m., (202) 418-0270.

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12. This proceeding is a non-restricted proceeding. See 47 CFR

1.1200(a), 1.1206. Accordingly, ex parte presentations are permitted,

provided that they are disclosed in conformance with the Commission's

ex parte rules.

13. Paperwork Reduction Act. We note that this Public Notice

contains either a proposed or modified information collection, and we

invite the general public to take this opportunity to comment on those

information collections, pursuant to the Paperwork Reduction Act of

1995, Public Law No. 104-13. 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 initial burden estimates; (c) ways to enhance the quality,

utility, and clarity of the information collected; and (d) ways to

minimize the burden of collection of information on respondents,

including the use of automated collection techniques or other forms of

information technology.

Federal Communications Commission.

Peyton L. Wynns,

Chief, Industry Analysis Division.

[FR Doc. 98-14408 Filed 5-28-98; 8:45 am]

BILLING CODE 6712-01-P