Public Information Collections Approved By Office of Management and Budget

FEDERAL COMMUNICATIONS COMMISSION

Public Information Collections Approved By Office of Management

and Budget

October 20, 1998.

The Federal Communications Commission (FCC) has received Office of

Management and Budget (OMB) approval for the following public

information collections pursuant to the Paperwork Reduction Act of

1995, Public Law 104-13. An agency may not conduct or sponsor and a

person is not required to respond to a collection of information unless

it displays a currently valid control number. For further information

contact Shoko B. Hair, Federal Communications Commission, (202) 418-

1379.

Federal Communications Commission

OMB Control No.: 3060-0856.

Expiration Date: 04/30/99.

Title: Universal Service--Schools and Libraries Universal Service

Program Reimbursement Forms.

Form No.: FCC Form 472, FCC Form 473, FCC Form 474.

Respondents: Business or other for profit; Not for profit

institutions.

Estimated Annual Burden: 61,800 respondents; 1.42 hours per

response (avg.); 88,050 total annual burden hours.

Estimated Annual Reporting and Recordkeeping Cost Burden: $0.

Frequency of Response: On occasion.

Description: The Commission adopted rules providing universal

service support for all telecommunications services, Internet access,

and internal connections for all eligible schools and libraries. The

Telecommunications Act of 1996 contemplates that discounts on eligible

services shall be provided to schools and libraries, and that service

providers shall seek reimbursement for the amount of the discounts. FCC

Form 472--Billed Entity Applicant Reimbursement Form. The information

to be collected in the Billed Entity Applicant Reimbursement Form is

necessary to enable the fund administrator, the SLC, to pay universal

service support to service providers who provide discounted services to

eligible schools, libraries, and consortia of those entities. The

information is to be collected from each Form 471 Billed Entity

Applicant (Applicant) that received a funding Commitment Decisions

Letter from the administrator and filed a Form 486 to indicate the

applicant intended to prepare and submit to the SLC an invoice for

reimbursement. The information to be collected on the Billed Entity

Applicant Reimbursement Form should be completed by an applicant to

seek reimbursement for payments on approved services and/or products

delivered to the applicant from the actual service start date, as

reported in the applicant's Form 486 Column (E), through no later than

December 31, 1998. This information is necessary to identify the amount

of the discounts due and owing from the service provider to the

applicant, so that the service provider may reimburse this amount to

the applicant. (No. of respondents: 50,000; annual burden per

respondent: 1.5 hours; total annual burden: 75,000 hours). FCC Form

473--Submission of Service Provider Annual Certification Form. The

Service Provider Annual Certification Form is to be submitted by each

service provider or vendor, hereinafter collectively referred to as

service providers, that was assigned a service provider identification

number (SPIN) by the Universal Service Administrative Company (USAC)

and that participates in the universal service support mechanism for

schools and libraries. The purpose of the Annual Certification Form is

to confirm that, for each Invoice Form submitted by the service

provider, the Invoice form is in compliance with the FCC's rules

governing the schools and libraries universal service support

mechanism, and the Invoice Form is true, accurate and complete. (No. of

respondents: 9300; annual burden per respondent: 1 hour; total annual

burden: 9300 hours). FCC Form 474--Submission of Service Provider

Invoice Form. The Service Provider Invoice Form is to be used by all

service providers or vendors, hereinafter collectively referred to as

service providers, who were assigned a SPIN by the USAC and participate

in the universal service support mechanism for schools and libraries.

The purpose of the Invoice Form is for the service provider/vendor to

seek reimbursement for the cost of discounts. The information to be

collected on the Service Provider Invoice Form must be received by the

SLC before a service provider participating in the universal service

program for schools and libraries can receive payment for the

discounted portion of its bill for eligible services to eligible

entities. (No. of respondents: 2500; annual burden per respondent: 1.5

hours; total annual burden: 3750 hours). All of the information

collected is used to administer the universal service schools and

libraries program. Copies of the forms may be obtained via e-mail

www.neca.org> or by calling 1-888-203-8100. Obligation to comply:

required to obtain or retain benefits.

OMB Control No.: 3060-0470.

Expiration Date: 10/31/2001.

Title: Allocation of Cost, Cost Allocation Manual, RAO Letters 19

and 26.

Form No.: N/A.

Respondents: Business or other for profit.

Estimated Annual Burden: 18 respondents; 300 hours per response

(avg.) (approximately 2 filings annually); 10,800 total annual burden

hours.

Estimated Annual Reporting and Recordkeeping Cost Burden: $0.

Frequency of Response: Annually.

Description: Section 64.903(a) requires local exchange carriers

(LECs) with annual operating revenues equal to or above the indexed

revenue threshold as defined in 47 CFR 32.9000 to file a cost

allocation manual containing the information specified in Section

64.903(a) (1)-(6). Section 64.903(b) requires that carriers update

their cost allocation manuals annually, except that changes to the cost

apportionment table and to the description of time reporting

[[Page 57690]]

procedures must be filed at least 15 days before the carrier plans to

implement the changes. The cost allocation manual is reviewed by the

FCC to ensure that all costs are properly classified between regulated

and nonregulated activity. Uniformity in the CAMs will help improve the

joint cost allocation process. In addition, this uniformity will give

the Commission greater reliability in financial data submitted by the

carriers through the Automated Reporting Management Information System

(ARMIS). Obligation to comply: Mandatory.

OMB Control No.: 3060-0853.

Expiration Date: 04/30/99.

Title: Receipt of Service Confirmation Form--Universal Service for

Schools and Libraries.

Form No.: FCC Form 486.

Respondents: Business or other for profit; Not for profit

institutions; State, local or tribal government.

Estimated Annual Burden: 30,000 respondents; 1.5 hours per response

(avg.); 45,000 total annual burden hours.

Estimated Annual Reporting and Recordkeeping Cost Burden: $0.

Frequency of Response: On occasion.

Description: The Commission adopted rules providing support for all

telecommunications services, Internet access, and internal connections

for all eligible schools and libraries. To participate in the program

schools and libraries must confirm that they are actually receiving the

services eligible for support. FCC Form 486, Receipt of Service

Confirmation Form is used by all billed entities who filed a FCC Form

471 on behalf of an eligible school, library, library consortium or

consortium of multiple entities, to inform the SLC when they begin

receiving or have received service from the service provider. The FCC

Form 486 is also used to confirm that technology plans of entities

receiving universal service support pursuant to an SLC-approved funding

commitment have been approved, indicating that the eligible entities

applying for universal service support have a plan in place to utilize

the services for which they have contracted, and to indicate the name

of the authorized reviewing body, contact name, and contact telephone

number. The FCC Form 486 is used to implement the congressional mandate

for universal service. See 47 USC 254. The reporting requirements

verify that each eligible school or library has received the services

it ordered and assure that invoices submitted from service providers

for the costs of discounts for eligible services represent services

which have been delivered to the eligible school or library. Copies of

the forms may be obtained via e-mail www.slcfund.org> or by calling 1-

888-203-8100. Obligation to respond: Required to obtain or retain

benefits.

OMB Control No.: 3060-0422.

Expiration Date: 10/31/2001.

Title: Section 68.5, Waivers (Application for Waiver of Hearing Aid

Compatibility Requirement).

Form No.: N/A.

Respondents: Business or other for profit.

Estimated Annual Burden: 10 respondents; 3 hours per response

(avg.); 30 total annual burden hours.

Estimated Annual Reporting and Recordkeeping Cost Burden: $0.

Frequency of Response: On occasion.

Description: Section 710(b) of the Communications Act of 1934, as

amended, requires that almost all telephones manufactured in or

imported into this country after August 15, 1989 be hearing aid

compatible. Refurbished, repaired or resold telephones, telephones used

with public and private mobile radio services, and secure telephones

used for classified communications are exempt. The HAC Act provides a

three year grace period for cordless telephones before they must comply

with the requirement. Congress recognized, however, that there may be

technological and/or economical reasons some new telephones may not

meet the hearing aid compatibility requirement. Therefore, it provided

for a waiver requirement for new telephone based on technological and

economical grounds. Section 68.5 of the Commission's rules provides the

criteria to be used to assess waivers. Applicants seeking waivers must

submit sufficient information for the Commission to make an informed

decision. Obligation to comply: Required to obtain or retain benefits.

OMB Control No.: 3060-0736.

Expiration Date: 10/31/2001.

Title: Implementation of the Non-Accounting Safeguards of Sections

271 and 272 of the Communications Act of 1934, as amended, CC Docket

No. 96-149.

Form No.: N/A.

Respondents: Business or other for profit.

Estimated Annual Burden: 5 respondents; 5 hours per response

(avg.)(about 12 responses per year); 303 total annual burden hours.

Estimated Annual Reporting and Recordkeeping Cost Burden: $0.

Frequency of Response: On occasion.

Description: Section 272 of the Telecommunications Act of 1996

requires that BOCs make information available to third parties if it

makes that information available to its section 272(a) affiliates. In

an Order released February 6, 1998, the Commission's Common Carrier

Bureau resolved questions regarding the application of sections 10 and

272 of the Communications Act of 1934, as amended, to the provision of

E911 services by the Bell Operating Companies. Bell Operating

Companies, Petitions for Forbearance from the Application of Section

272 of the Communications Act of 1934, as amended, to Certain

Activities, CC Docket No. 96-149, DA 98-220, Memorandum Opinion and

Order (Com. Car. Bur. Feb. 6, 1998) (February 6 Order). E911 services

enable emergency service personnel to identify the location of the

party calling 911, and are essential to the safety of many Americans.

In the February 6 Order, the Bureau determined that the BOCs' E911

services are interLATA information services. One consequence of this

determination was that each BOC had an obligation under section

272(a)(2)(c) of the Act to provide E911 services only through a

separate affiliate. In the February 6 Order, the Bureau forbore from

the application of this separate affiliate requirement pursuant to the

forbearance authority in section 10 of the Act, thus permitting the

BOCs to provide E911 services on an integrated basis. The Bureau

determined that requiring the BOCs to provide E911 services only

through separate affiliates would have increased the cost, but not the

quality, of those services. In the February 6 Order, the Bureau

maintained the substance of the statutory nondiscrimination requirement

by requiring each BOC to provide unaffiliated entities with all listing

information, including unlisted and unpublished numbers as well as the

numbers of other local exchange carriers' customers, that the BOC uses

to provide E911 services, even though that Order was permitting the

BOCs to provide those services on an integrated basis. The Bureau

required that this listing information be provided at the same rates,

terms, and conditions, if any, the BOC charges or imposes on its own

E911 services. The BOCs are already required to account for their E911

services on the books of account that they maintain in accordance with

Part 32 of the Commission's rules. The Commission requires that the

BOCs treat their E911 services as nonregulated activities for federal

accounting purposes to the extent they involve storage and retrieval

functions included within the statutory definition of

[[Page 57691]]

information service. The BOCs shall record any charges they impute for

their E911 services in their revenue accounts. The BOCs shall account

for any imputed charges by debiting their nonregulated operating

revenue accounts and crediting their regulated revenue accounts by the

amounts of the imputed charges. The BOCs shall make any changes to

their cost allocation manuals necessary to reflect this account. The

BOCs' independent auditors shall include this accounting in their

review of the BOCs compliance with their cost allocation manuals. The

requirements will be used to ensure that BOCs comply with the

nondiscrimination requirements under the 1996 Act. OMB also approved

the proposals contained in the Further Notice of Proposed Rulemaking

issued in CC Docket No. 96-149. In the FNPRM the Commission proposed

that BOCs make certain information disclosures available to

``unaffiliated entities'' as defined under Commission rules. This

disclosure include the amount of time, measured in percentages and

averages, that it takes a BOC to respond to its section 272 affiliates.

BOCs must submit an annual affidavit to the Commission certifying,

inter alia, that they are maintaining the information according to the

required format. Obligation to comply: Mandatory.

OMB Control No.: 3060-0804.

Expiration Date: 03/31/99.

Title: Universal Service--Health Care Providers Universal Service

Program.

Form No.: FCC Form 465, FCC Form 466, FCC Form 467, and FCC Form

468.

Respondents: Businesses or other for profit entities; Not for

profit institutions.

Estimated Annual Burden: 18,400 respondents; 6.6 hours per response

(avg.); 121,500 total annual burden hours.

Estimated Annual Reporting and Recordkeeping Cost Burden: $0.

Frequency of Response: . On occasion.

Description: The Commission adopted rules providing support for all

telecommunications services, limited distance charges, and Internet

access for all eligible health care providers. Health care providers

who want to participate in the universal service program must file the

following forms. FCC Form 465 to request eligible services (no. of

respondents: 12,000; annual burden per response: 2.5 hours; total

annual burden: 30,000 hours); FCC Form 466 to certify that the most

cost effective method of providing the services has been requested (no.

of respondents: 15,000; annual burden per respondent: 1.5 hours; total

annual burden: 22,500 hours); FCC Form 467 to confirm the receipt of

the requested services (no. of respondents: 12,000; annual burden per

respondent: 1.5 hours; total annual burden: 18,000 hours); and FCC Form

468 to ensure that the proper amount of universal service support has

been calculated (no. of respondents: 3400; annual burden per

respondent: 1.5 hours; total annual burden: 51,000 hours). All the

information is used to administer the universal service health care

program. Copies of the forms may be obtained via e-mail

www.rhccfund.org> or by calling 1-888-203-8100. Obligation to comply:

Required to obtain or retain benefits.

OMB Control No.: 3060-0824.

Expiration Date: 09/30/2001.

Title: Service Provider Information Form.

Form No.: FCC Form 498.

Respondents: Business or other for profit.

Estimated Annual Burden: 10,000 respondents; 1 hours per response

(avg.); 10,000 total annual burden hours.

Estimated Annual Reporting and Recordkeeping Cost Burden: $0.

Frequency of Response: On occasion.

Description: Pursuant to Sections 54.515 and 54.611 of the

Commission's rules, 47 CFR Sections 54.515 and 54.611, the Universal

Service Administrative Company (USAC), must obtain information relating

to: service provider name and address, telephone number, Federal

employer identification number, contact names and telephone numbers,

and billing and collection information. To that end, USAC has developed

a Service Provider Information Form, FCC Form 498 to collect this

information from carriers and service providers participating in the

universal service programs. The FCC Form 498 is designed to collect

only the information necessary to fulfill the obligation of USAC to

bill and collect funds for the various universal service programs. All

the requirements contained herein are necessary to implement the

congressional mandate for universal service. See 47 USC 254. Copies of

the form may be obtained via e-mail www.neca.org/usacform.html> or by

calling 1-888-641-8722.

OMB Control No.: 3060-0819.

Expiration Date: 09/30/2001.

Title: Lifeline Assistance (Lifeline) Connection Assistance (Link

Up) Reporting Worksheet and Instructions (47 CFR 54.400-54.417).

Form No.: FCC Form 497.

Respondents: Business or other for profit.

Estimated Annual Burden: 1500 respondents; 28 hours per response

(avg.) (about 12 submissions per respondent annually); 42,000 total

annual burden hours.

Estimated Annual Reporting and Recordkeeping Cost Burden: $0.

Frequency of Response: On occasion.

Description: Pursuant to Section 54.405 all eligible

telecommunications carriers (ETCs) are required to provide Lifeline

service. In turn, these ETCs are permitted under Section 54.407

(Lifeline) or Section 54.413 (Link Up) to receive support for offering

Lifeline service to qualifying low-income customers or reduced service-

connection charges through Link Up. Pursuant to Section 54.403(c),

carriers providing toll-limitation services (TLS) for qualifying low-

income subscribers will be compensated from universal service

mechanisms for the incremental cost of providing TLS. In addition,

pursuant to Section 54.403(d), the cost of the Presubscribed Carriers

Charge (PICC) for Lifeline customers who elect toll blocking is also

recoverable from the low-income program. FCC Form 497, Lifeline and

Link Up Worksheet, is to be used to request reimbursement for

participating in the low-income program. The information is necessary

in order for ETCs to receive universal service support reimbursement

for providing Lifeline and Link Up. Copies of the form may be obtained

via e-mail www.neca.org/usacform.html> or by calling 1-888-641-8722.

Obligation to comply: Required to obtain or retain benefits.

OMB Control No.: 3060-0815.

Expiration Date: 09/30/2001.

Title: North American Numbering Plan Funding Worksheet.

Form No.: FCC Form 496.

Respondents: Business or other for profit.

Estimated Annual Burden: 3700 respondents; .50 hours per response

(avg.); 1850 total annual burden hours.

Estimated Annual Reporting and Recordkeeping Cost Burden: $0.

Frequency of Response: On occasion; annually.

Description: Pursuant to Congress's directive in the

Telecommunications Act of 1996 that the Commission establish an

independent entity to administer telecommunications numbering, the

Commission determined on July 13, 1995, that the costs associated with

administering numbering duties should be based on each

telecommunications carrier's gross revenues less payments made to other

carriers. The costs the North American Numbering Plan Administrator

(NANPA) incurs from establishing telecommunications numbering

administration arrangements and other number portability are to be

borne by all

[[Page 57692]]

telecommunications carriers on a competitively neutral basis. See 47

USC 251(e)(2). Section 52.16(b) of the Commission's rules require the

Billing and Collection agent to design a standard reporting worksheet

to collect information for assessment calculations from carriers and to

distribute it to carriers. FCC Form 498, is the instrument used to

request that telecommunications carriers provide information regarding

their yearly gross revenues less payments made to other

telecommunications carriers. The Commission and the NANPA's billing and

collection agent will use the information collected in the worksheet to

determine the total revenue received from telecommunications carriers

in order to arrive at an amount that each carrier must pay to fund the

NANPA. Copies of the form were mailed to respondents. Copies of the

form may be obtained via email www.fcc.gov>. Obligation to respond:

Mandatory.

OMB Control No.: 3060-0845.

Expiration Date: 10/31/2001.

Title: 1998 Annual Biennial Review of ARMIS Reporting Requirements.

Form No.: FCC 43-01-FCC 43-08, FCC 495A, FCC 495B.

Respondents: Business or other for profit.

Estimated Annual Burden: 150 respondents; 1092 hours per response

(avg.); 163,846 total annual burden hours.

Estimated Annual Reporting and Recordkeeping Cost Burden: $0.

Frequency of Response: Annual.

Description: Section 220 of the Communications Act of 1934, as

amended, 47 USC 220, allows the Commission, at its discretion, to

prescribe the forms of any and all accounts, records, and memoranda to

be kept by carriers subject to this Act, including the accounts,

records, and memoranda of the movement of traffic, as well as of the

receipts and expenditures of moneys. Section 219(b) of the

Communications Act of 1934, as amended, 47 USC 219(b), authorizes the

Commission by general or special orders to require any carriers subject

to this Act to file annual reports concerning any matters with respect

to which the Commission is authorized or required by law to act.

Section 43.21 of the Commission's rules details that requirement. The

Automated Reporting Management Information System (ARMIS) was

implemented to facilitate the timely and efficient analysis of revenue

requirements and rate of return to provide an improved basis for audits

and other oversight functions, and to enhance the Commission's ability

to quantify the effects of alternative policy. Section 11 of the

Communications Act of 1934, as amended, requires the Commission, in

every even-numbered year beginning in 1998, to review its regulations

applicable to providers of telecommunications service to determine

whether the regulations are no longer in the public interest due to

meaningful economic competition between providers of such service and

whether such regulations should be repealed or modified. (See 47 USC

161). In a NPRM issued in CC Docket No. 98-117, released 7/17/98, we

proposed as part of the biennial review to reduce the reporting

requirements of our ARMIS. These modifications are designed to minimize

the reporting burden on carriers, improve the quality and use of the

reported information and reduce the cost to the Commission of

collection, verification, and distribution of the data. The Common

Carrier Bureau currently requires carriers to submit both paper and

electronic copies of the ARMIS reports. The Commission has, in recent

years, relied on the data filed electronically to maintain internal

databases and generate meaningful reports for policy making. We

tentatively conclude that paper versions of the ARMIS reports do not

significantly contribute to the Commission efforts or future goals in

administering its accounting, joint cost, jurisdictional separations,

access charge rules, or in monitoring the quality of service and

infrastructure development in the public network. Therefore, we

tentatively conclude that we should eliminate the paper filing

requirement. We anticipate that the transition to an electronic-only

reporting program will represent a substantial cost savings for all

carriers that file ARMIS reports.

The Commission plans to make the ARMIS data available through the

Internet. This will require Commission staff to develop software that

will allow interested parties to obtain ARMIS reports over the

Internet, which we anticipate to be a costly process. The Commission

also proposed specific modifications for certain ARMIS reports. For

example, the Commission proposed to modify the ARMIS 43-04 Access

Report by eliminating 114 rows and three columns in which carriers

report data pertaining to equal access, inside wire, and payphone

investment. The Commission also proposed to reduce reporting

requirements for mid-sized incumbent LECs. For the largest incumbent

LECs, we tentatively conclude that we should maintain the Class A level

of detail for their ARMIS reporting requirements. See CC Docket No. 98-

117 for detailed discussion of the proposals. The proposals contained

in the NPRM have been approved by OMB. The following is a listing of

the reports that may be affected by the proposals contained in the NPRM

and the burden estimate if the proposals are adopted.

a. ARMIS Annual Summary Report, FCC Report 43-01--The ARMIS Annual

Summary Report contains financial and operating data and is used to

monitor the local exchange carrier industry and to perform routine

analyses of costs and revenues. (No. of respondents: 150; estimated

time per response: 135 hours; total annual burden: 20,250 hours).

b. ARMIS USOA Report, FCC Report 43-02--The FCC Report 43-02

contains company-wide data for each account specified in the Uniform

System of Accounts (USOA). It provides the annual operating results of

the carriers' activities for every account in the USOA. (No. of

respondents: 50; estimated time per response: 190 hours; total annual

burden: 9500 hours).

c. ARMIS Joint Cost Report, FCC Report 43-03--FCC Report 43-03

contains financial and operating data. FCC Report 43-03 displays

regulated and nonregulated data disaggregated by allocation method, at

the study area level. The Commission uses it to monitor the local

exchange carriers' allocation of costs to regulated and nonregulated

activities and to perform routine analyses of costs and revenues. (No.

of respondents; 150; estimated time per response: 110 hours; total

annual burden: 12,450 hours).

d. ARMIS Access Report, FCC Report 43-04--FCC Report 43-04 contains

financial and operating data and is used to monitor the local exchange

carrier industry and to perform routine analyses of costs and revenues

on behalf of the Commission. (No. of respondents: 150; estimated per

response: 621 hours; total annual burden: 93,150 hours).

e. ARMIS Service Quality Report, FCC Report 43-05--The FCC Report

43-05 collects data at the study area level and holding company level

and is designed to capture trends in service quality under price cap

regulation. It provides service quality information in the areas of

interexchange access service installation and repair intervals, local

service installation and repair intervals, trunk blockage and total

switch downtime for price cap companies. (No. of respondents: 12;

estimated time per response: 625 hours; total annual burden: 7500

hours.

f. ARMIS Customer Satisfaction Report, FCC Report 43-06--The FCC

Report 43-06 reflects the results of customer satisfaction surveys

conducted

[[Page 57693]]

by individual carriers from residential and business customers. (No. of

respondents: 8; estimated time per response: 675 hours; total annual

burden: 5400 hours).

g. ARMIS Infrastructure Report, FCC Report 43-07--The FCC Report

43-07 is designed to capture trends in telephone industry

infrastructure development under price cap regulation. It provides

switch deployment and capabilities data. (No. of respondents: 8;

estimated time per response: 412 hours; total annual burden: 3296

hours).

h. ARMIS Operating Data Report, FCC Report 43-08--The FCC Report

43-08 consists of statistical schedules previously contained in FCC

Form M which are needed by the Commission to monitor network growth,

usage and reliability. (No. of respondents: 50; estimated time per

response: 120 hours; total annual burden: 6000 hours).

i. and j. ARMIS Forecast of Investment Usage Report and Actual

Usage of Investment Report, FCC Reports 495A and 495B, implement the

FCC's Joint Cost Order, CC Docket No. 86-111 which requires that

certain telephone plant investments used for both regulated and

nonregulated purposes be allocated on the basis of forecasted regulated

and nonregulated use. The detection and correction of forecasting

errors requires reporting of both forecasted and actual investment

usage data. The Forecast of Investment Usage Report is used by carriers

to subject the forecasts of investments used. The Actual Usage of

Investment Report is used to submit the actual investments used. (No.

of respondents: 300; estimated time per response: 21 hours; total

annual burden: 6300 hours). The proposed modifications, if adopted,

would result in a burden reduction of more than 50% in our current

estimate for ARMIS reports. The information contained in the ARMIS

Reports provide the necessary detail to enable the Commission to

fulfill its regulatory responsibilities. Automated reporting of these

data greatly enhances the Commissions ability to process and analyze

the extensive amounts of data that are needed to administer its rules.

It facilities the timely and efficient analyses of revenue

requirements, rates of return and price caps, and provides an improved

basis for auditing and other oversight functions. It also enhances the

Commission's ability to quantify the effects of policy proposals.

Obligation to comply: Mandatory.

OMB Control No.: 3060-0847.

Expiration Date: 10/31/2001.

Title: 1998 Biennial Regulatory Review, Review of Accounting and

Cost Allocation Requirements--CC Docket No. 98-81.

Respondents: Business or other for profit.

Estimated Annual Burden: 276 respondents; 1092 hours per response

(avg.); 2,415,568 total annual burden hours.

Estimated Annual Reporting and Recordkeeping Cost Burden: $1200.

Frequency of Response: On occasion, Annual.

Description: Section 220 of the Communications Act of 1934, as

amended, 47 U.S.C. 220, allows the Commission, in its discretion, to

prescribe the forms of any and all accounts, records, and memoranda to

be kept by carriers subject to this Act, including the accounts,

records and memoranda of the movement of traffic, as well as of the

receipts and expenditures of moneys. Section 11 of the Communications

Act of 1934, as amended, 47 U.S.C. 161, requires the Commission, in

every even-numbered year beginning in 1998, to review its regulations

applicable to providers of telecommunications services to determine

whether the regulations are no longer in the public interest due to

meaningful economic competition between providers of such service and

whether such regulations should be repealed or modified. Section 11

further instructs the Commission to repeal or modify any regulation it

determines to be no longer necessary in the public interest. On June

17, 1998, the Commission released a Notice of Proposed Rulemaking in CC

Docket No. 98-81, proposing to modify its accounting and cost

allocation rules as part of the biennial review process. Specifically,

the Commission proposed (1) to raise the threshold significantly for

required Class A accounting, thus allowing mid-sized carriers currently

required to use Class A accounts to use the more streamlined Class B

accounts; (2) to establish less burdensome cost allocation manual

(``CAM'') procedures for the mid-sized incumbent local exchange

carriers (``LECs'') and to reduce the frequency with which independent

audits of the cost allocations based upon the CAMs are required; and

(3) to make certain changes to our Uniform System of Accounts

(``USOA'') to reduce accounting requirements and to eliminate or

consolidate accounts. The proposals contained in the NPRM have been

approved by OMB. Following is a listing of the collections that will be

affected by the proposals contained in the NPRM along with the

estimated burden hours.

a. Part 32--Uniform Systems of Accounts (recordkeeping and

reporting requirements)--The Uniform System of Accounts is a historical

financial accounting system which reports the results of operational

and financial events in a manner which enables both management and

regulators to assess these results within a specified accounting

period. Subject respondents are telecommunications companies. The

Commission for accounting purposes has classified companies into two

classes in Part 32, namely Class A and Class B companies. Class A

carriers are those entities having annual revenues from regulatory

telecommunications operations of $100,000,000 or more. Class B carriers

are those entities having annual revenues from regulated

telecommunications operations of less than $100,000,000. (No. of

respondents: 239; estimated time per response: 10,034.5 hours; total

annual burden: 2,398,268 hours).

b. Computer III Remand Proceeding: BOC Safeguards and Tier 1 LEC

Safeguards and Implementation of Further Cost Allocation Uniformity.

Pursuant to Section 64.901, carriers are required to separate their

regulated costs from nonregulated costs using the attributable cost

method of accounting. Carriers must follow the principles described in

Section 64.901. Carriers subject to 47 CFR 64.901 are also subject to

the provisions of 47 CFR 32.23 and 32.27. Section 64.903(a), as amended

by the Telecommunications Act of 1996, requires local exchange carriers

with annual operating revenues equal to or above the indexed revenue

threshold as defined in 47 CFR Section 32.9000 to file a cost

allocation manual, containing the information specified in Section

64.903(a)(1)-(6). Section 64-903(b) requires that carriers update their

cost allocation manuals annually, except that changes to the cost

apportionment table and the description of time reporting procedures

must be filed at least 15 days before the carrier plans to implement

the changes. Proposed changes in the description of time reporting

procedures, the statement concerning affiliate transactions, and the

cost apportionment table must be accompanied by a statement quantifying

the impact of each change on regulated operations. Changes in the

description of time reporting procedures and the statement concerning

affiliate transactions must be quantified in $100,000 increments at the

account level. Changes in the cost apportionment table must be

quantified in $100,000 increments at the cost pool level. Moreover,

filing of cost allocation

[[Page 57694]]

manuals and occasional updates are subject to the uniform format and

standard procedures specified in RAO letter 19. The Commission proposes

to, among other things, eliminate or modify some of the information

required in the CAMs for mid-sized incumbent LECs. (No. of respondents:

18; estimated time per response: 300 hours (about two filings per

respondent); total annual burden: 10,800 hours).

c. Annual Auditor's Certification--Section 64.904--Independent

auditors must evaluate the results of the carrier's cost allocation

manuals in light of the requirements of the manuals as well as the

Commission's joint cost rules and rules and regulations including 47

CFR 32.23, 32.27, 64.901 and 64.903 in force as of the date of the

auditor's report. Independent auditors must follow all of the ten

standards of generally accepted auditing standards (GAAS) in preparing

the required reports. The Commission proposes to, among other things,

to relax the audit requirement for mid-sized incumbent LECs. (No. of

respondents: 19; estimated time per response: 500; total annual burden:

6500 hours). The proposed information collection requirements will

provide the necessary information to enable this Commission to fulfill

its regulatory responsibilities. These proposed accounts and

recordkeeping requirements are intended to achieve the following goals:

(1) to facilitate uniform reporting among ILECs; and (2) to ensure that

regulated ratepayers do not bear the costs of ILECs' competitive

activities. If the proposals are adopted, the Commission will realize a

burden reduction of 633,500 hours. Obligation to comply: Mandatory.

Public reporting burden for the collections of information is as

noted above. Send comments regarding the burden estimate or any other

aspect of the collections of information, including suggestions for

reducing the burden to Performance Evaluation and Records Management,

Washington, D.C. 20554.

Federal Communications Commission.

Magalie Roman Salas,

Secretary.

[FR Doc. 98-28769 Filed 10-27-98; 8:45 am]

BILLING CODE 6712-01-P