[Federal Register Volume 77, Number 47 (Friday, March 9, 2012)]
[Rules and Regulations]
[Pages 14297-14303]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-5590]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 51 and 54
[WC Docket Nos. 10-90, 07-135, 05-337, 03-109; GN Docket No. 09-51; CC
Docket Nos. 01-92, 96-45; WT Docket No. 10-208; DA 12-147]
Connect America Fund; a National Broadband Plan for Our Future;
Establishing Just and Reasonable Rates for Local Exchange Carriers;
High-Cost Universal Service Support
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: In this document, the Federal Communications Commission
clarifies certain rules. This document also modifies certain initial
filing deadlines required to comply with the Paperwork Reduction Act
requirements, and finds good cause to delete certain rules that are now
obsolete.
DATES: Effective April 9, 2012, except for Sec. Sec. 54.313(a)(9),
54.313(f)(2), and 54.1003(b), which contain information collection
requirements that are not effective until approved by the Office of
Management and Budget. The Federal Communications Commission will
publish a document in the Federal Register announcing the effective
date for those sections.
[[Page 14298]]
FOR FURTHER INFORMATION CONTACT: Amy Bender, Wireline Competition
Bureau, (202) 418-1469, Victoria Goldberg, Wireline Competition Bureau,
(202) 418-7353, and Margaret Wiener, Wireless Telecommunications
Bureau, (202) 418-2176 or TTY: (202) 418-0484.
SUPPLEMENTARY INFORMATION: This is a summary of the Wireline
Competition Bureau and the Wireless Telecommunications Bureau's Order
in WC Docket Nos. 10-90, 07-135, 05-337, 03-109; GN Docket No. 09-51;
CC Docket Nos. 01-92, 96-45; WT Docket No. 10-208; DA 12-147, released
on February 3, 2012. The full text of this document is available for
public inspection during regular business hours in the FCC Reference
Center, Room CY-A257, 445 12th Street SW., Washington, DC 20554. Or at
the following Internet address: http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0203/DA-12-147A1.pdf.
I. Introduction
1. In the USF/ICC Transformation Order, 76 FR 76623, December 8,
2011, the Commission delegated to the Wireline Competition Bureau and
the Wireless Telecommunications Bureau (Bureaus) the authority to
revise and clarify rules as necessary to ensure that the reforms
adopted in the Order are properly reflected in the rules. In this
Order, the Bureaus act pursuant to this delegated authority to revise
and clarify certain rules, and act pursuant to authority delegated to
the Bureaus in Sec. Sec. 0.91, 0.131, 0.201(d), 0.291, and 0.331 of
the Commission's rules to clarify certain rules. This Order also
modifies certain initial filing deadlines required by Sec. 54.313 of
the Commission's rules as necessary to comply with the Paperwork
Reduction Act (PRA) requirements, and finds good cause to delete
certain rules that are now obsolete.
2. The Bureaus note that petitions for reconsideration of certain
aspects of the USF/ICC Transformation Order are pending before the
Commission and will be addressed by the Commission in due course.
Nothing in this Order is intended to prejudge Commission action with
respect to those petitions.
II. Discussion
A. Universal Service
3. Rate Floor. In the USF/ICC Transformation Order, the Commission
adopted a rule reducing high-cost support for incumbent carriers
receiving high-cost support that charged local rates below a nationwide
rate benchmark. The Order ``reduce[s], on a dollar-for-dollar basis,
HCLS and CAF phase I support,'' but excludes Interstate Common Line
Support (ICLS) on the basis that it supports ``interstate rates, not
intrastate end-user rates.'' The Order does not specify how the offsets
would apply to frozen high-cost support provided pursuant to CAF Phase
I, which commingles intrastate and interstate support. For the purposes
of calculating certain interstate rates, frozen CAF Phase I support
remains attributable to the interstate jurisdiction to the extent that
the frozen CAF Phase I support replaced Interstate Access Support.
Moreover, the codified rule, Sec. 54.318(d), makes clear that this
rate reduction only applies to HCLS and HCMS. In this Order, the
Wireline Competition Bureau (Bureau) amends Sec. 54.318(d) to clarify
that support reductions associated with the rate floor will offset
frozen CAF Phase I support only to the extent that the recipient's
frozen CAF Phase I support replaced HCLS and HCMS. The offset does not
apply to frozen CAF Phase I support to the extent that it replaced IAS
and ICLS.
4. Reporting Requirements for High-Cost Recipients. In the USF/ICC
Transformation Order, the Commission adopted or modified several
reporting requirements for eligible telecommunications carriers (ETCs)
that receive high-cost support. In particular, the Commission adopted a
rule, codified in Sec. 54.313, requiring all ETCs receiving high-cost
support to file annual reports regarding compliance with the
Commission's rules and progress toward its universal service goals.
Several of these requirements had previously applied only to federally
designated ETCs, under former Sec. 54.209. The Order states that Sec.
54.313 annual reports will be due annually by April 1, beginning on
April 1, 2012. As specified in the Order, however, any new reporting
requirements are not effective until Federal Register publication of
approval by the Office of Management and Budget of the associated
information collections under the Paperwork Reduction Act (PRA). The
Commission delegated authority to the Bureau to modify initial filing
deadlines required by Sec. 54.313 as necessary to comply with the PRA
requirements. In this Order, the Bureau clarifies several aspects of
those reporting requirements and provides guidance regarding the
associated timing of such requirements.
5. First, the Commission stated in the USF/ICC Transformation Order
that all ETCs are required to file a new five-year build-out plan by
April 1, 2013, to account for the new broadband obligations established
in the Order. The Bureau hereby amends Sec. 54.313(a)(1) to clarify
this requirement.
6. ETCs previously designated by the Commission are still required
to file a progress report on their existing five-year build-out plans
currently on file with the Commission but, this year, the progress
reports will be due April 1 rather than October 1. On April 1, 2013,
those ETCs are required to file with the Commission a new five-year
build-out plan that accounts for the new broadband obligations (which
will replace the five-year build-out plan currently on file with the
Commission) and to send copies to the relevant state commission,
relevant authority in a U.S. Territory, or Tribal government, as
appropriate. And beginning April 1, 2014, those ETCs are required to
file annual progress reports on their new five-year build-out plans.
7. ETCs that have been designated by a state commission should
continue to comply with state requirements, if any, regarding service
improvement plans. If a state commission previously required an ETC to
file a service quality improvement plan or annual updates with the
state commission then the ETC should do so, but that ETC is not
required to send a copy to the Commission. Similarly, ETCs that are not
required by a state commission to file a quality improvement plan with
the state commission are not required to file a plan with the
Commission this year. However, on April 1, 2013, all state-designated
ETCs are required to file with the Commission five-year build-out plans
that account for the new broadband obligations adopted in the USF/ICC
Transformation Order and to send copies to the relevant state
commission, relevant authority in a U.S. Territory, or Tribal
government, as appropriate. And beginning April 1, 2014 all state-
designated ETCs are required to file annual progress reports on their
five-year build-out plans.
8. In the Order, the Commission explained that the five-year build-
out plan filed on April 1, 2013 should be consistent with Sec.
54.202(a)(1)(ii). That is, it should describe with specificity proposed
improvements or upgrades to the ETC's network throughout its service
area, including estimating the area and population that will be served
as a result of improvements. This requirement to file a new five-year
build-out plan only applies to ETCs that receive high-cost support.
9. Second, Sec. 54.313(a)(2)-(6) requires ETCs annually to file
information concerning outages, unfulfilled service requests, and
complaints, among other things. We clarify that ETCs that have been
designated by the Commission are
[[Page 14299]]
still required to file that information with respect to their provision
of voice service during 2011. But this year, it will be due April 1
rather than October 1. Beginning April 1, 2013, and annually
thereafter, those ETCs must file such information separately broken out
for both voice and broadband service.
10. We recognize that ETCs that have been designated by a state
commission may not have been required to collect and report this
information with respect to their provision of voice service during
2011. If state-designated ETCs did not collect this information during
2011, then it would be impossible for them to report it to the
Commission in 2012, and they are not required to do so. If state-
designated ETCs are subject to a state requirement to report some or
all of this information annually to the state, however, then they
should file a copy of any relevant information with the Commission in
2012. The Bureau will provide impacted ETCs sufficient time after PRA
approval is obtained to file the relevant information. Beginning April
1, 2013, and annually thereafter, state-designated ETCs must file all
of the information required by Sec. 54.313(a)(2)-(6), and such
information must be separately broken out for both voice and broadband
service.
11. Third, the USF/ICC Transformation Order requires that high-cost
support recipients provide information demonstrating that they have
engaged with Tribal governments in their supported areas, but does not
specify a date for doing so. The Order also delegated to the Office of
Native Affairs and Policy (ONAP), in coordination with WCB and WTB, the
authority to develop processes to guide support recipients in such
engagements. Because it will take some time to finalize these processes
and for affected ETCs to comply with those requirements, the Bureau
clarifies that the initial deadline for reporting information pursuant
to this requirement is April 1, 2013 and annually thereafter. That is,
ETCs are required to undertake their Tribal engagement obligations in
2012 after ONAP provides engagement process guidance, which will be the
substance of the reporting beginning April 1, 2013 and annually
thereafter.
12. Fourth, the USF/ICC Transformation Order requires high-cost
recipients to annually report ownership information, but does not
specify a date for doing so. The Bureau will provide affected ETCs
sufficient time after PRA approval is obtained to file the required
information. Beginning in 2013, and annually thereafter, the
information must be filed by April 1.
13. Fifth, the USF/ICC Transformation Order adopts financial
reporting requirements for privately held rate-of-return carriers and
specifies that this information must be reported beginning April 1,
2012, subject to PRA approval. The Bureau clarifies that the April 1
reporting date will not be applicable if PRA approval is not received
prior to April 1 with sufficient time for respondents to comply. The
Bureau will provide sufficient time once PRA approval is obtained for
affected ETCs to comply with this requirement.
14. Sixth, the USF/ICC Transformation Order specified that
privately held rate-of-return carriers that receive loans from the
Rural Utilities Service (RUS) could satisfy their financial reporting
obligation by providing electronic copies of their annual RUS reports
to the Commission. The Bureau modifies Sec. 54.313(f)(2) to reflect
the Commission's intent that such companies may file their RUS reports
in lieu of an audited financial statement.
15. Application of the Per-Line Cap to Competitive Eligible
Telecommunications Carrier (ETC) Phase Down. In the USF/ICC
Transformation Order, the Commission adopted an annual baseline for the
phase down of competitive ETC support equal to the lesser of the amount
of support the competitive ETC received in 2011 or $3000 per loop
(which is $250 per line per month). In this Order, the Bureau clarifies
that the $3000 per-loop limit is applicable to competitive ETCs at the
incumbent study area level. For example, if a competitive ETC receives
an average of $2000 per loop per year serving multiple incumbent study
areas, but it receives $3500 per loop per year in one of the study
areas, the cap will constrain the competitive ETC's support in that
study area. This clarification ensures that, consistent with the
Commission's stated rationale, the competitive ETCs' baselines are
commensurate with adjustments to the support provided to incumbents
serving the same areas.
16. Elimination of Section 54.315 (Disaggregation). Section 54.315
of the Commission's rules permits incumbent local exchange carriers to
target the high-cost universal service support they receive to specific
areas within their study areas based on the relative costs of serving
those areas. This disaggregation of support was intended to ensure that
competitive ETCs receive an appropriate per-line support amount for the
various areas within the incumbent study area, rather than a single,
undifferentiated per-line support amount for the entire study area.
Because the Commission eliminated the identical support rule in the
USF/ICC Transformation Order and competitive ETCs therefore no longer
receive support based on incumbent support amounts, the Commission's
disaggregation rule is now obsolete. Because this rule is obsolete, we
find good cause to delete it without notice and comment.
17. Elimination of Quarterly Line Counts in Areas Served by a
Competitive ETC. In the USF/ICC Transformation Order, the Commission
eliminated the identical support rule and adopted a process to phase
down competitive ETC support. The Commission also eliminated the
requirement that competitive ETCs, except those serving remote areas of
Alaska, file quarterly line counts. In this Order, the Bureau amends
Sec. 54.903(a)(2) to eliminate requirements for certain quarterly line
count filings by incumbent carriers that were necessary only for the
purpose of calculating support for competitive ETCs pursuant to the
identical support rule. Carriers filing quarterly line counts pursuant
to Sec. 54.903(a)(2) solely because of the presence of a competitive
ETC will no longer be required to file line counts on a quarterly
basis. Carriers may continue to file voluntary updates of line counts.
Because the quarterly line filing requirement is obsolete, the Bureau
finds good cause to change the Commission's rules without notice and
comment.
18. Elimination of Average Schedule Formula for Local Switching
Support. In the USF/ICC Transformation Order, the Commission eliminated
local switching support (LSS) but did not delete Sec. 54.301,
governing LSS, from its rules because several elements continue to be
applicable for the purposes of truing up support for prior years.
Pursuant to Sec. 54.301(f), the Administrator is required each year to
file a proposed formula for calculating LSS for average schedule
companies in the next year. Because LSS calculations will not be
required on a going forward basis, this requirement is obsolete and the
Bureau deletes Sec. 54.301(f). Because this rule is obsolete, we find
good cause to delete it without notice and comment.
19. Mobility Fund Phase I Eligibility--Access to Spectrum
Requirement. In the USF/ICC Transformation Order, the Commission
required that any applicant for a Mobility Fund Phase I auction have
access to the spectrum necessary to fulfill any obligations related to
support. The Commission further required that such access through a
license or leasing
[[Page 14300]]
arrangement be in effect prior to auction. In order to facilitate
auction participation, the Commission concluded that a party could
fulfill the spectrum access requirement by acquiring spectrum access
that is contingent on obtaining support in the auction. The Commission
further found that ``failing to ensure spectrum access, on at least a
conditional basis, prior to entering a Mobility Fund auction would be
inconsistent with the serious undertakings implicit in bidding for
support.'' This eligibility requirement is codified in Sec.
54.1003(b). This Order amends the rule to clarify that an applicant
must have obtained any Commission approvals necessary for the spectrum
access prior to submitting an application to participate in competitive
bidding.
B. Intercarrier Compensation
20. Recovery for Rate-of-Return Carriers. In the USF/ICC
Transformation Order, the Commission adopted a transitional recovery
mechanism allowing carriers limited recovery of revenues reduced as a
result of that Order. The Commission specified a baseline from which a
rate-of-return incumbent local exchange carrier's Eligible Recovery
would be calculated, and specified that this baseline will decrease by
five percent per year. Specifically, the Order correctly stated that a
rate-of-return carrier's Eligible Recovery would be determined by
reducing its 2011 Rate-of-Return Baseline by a five percent adjustment
factor before subtracting its ``ICC recovery opportunity'' for that
year. Under the rules, however, a rate-of-return carrier's Eligible
Recovery would be overstated because the five percent adjustment factor
would not be applied until after subtracting its ICC recovery
opportunity for that year. Applying the adjustment factor after
reducing a carrier's baseline by its ICC recovery opportunity would
increase the carrier's Eligible Recovery, entitling it to increase
charges on end-users and/or to increase its claim to CAF funding, and
as a result would reduce the effective adjustment below the amount the
Commission specified in the Order. As adopted, Sec. Sec.
51.917(d)(1)(i)(3) and (4) address the respective components of
eligible recovery (Transitional Intrastate Access Service, interstate
switched access, and net reciprocal compensation (including both CMRS
and non-CMRS reciprocal compensation)) in terms of reductions rather
than recovery opportunity. Accordingly, the rule is corrected and
revised as set forth in Appendix B to reflect the carrier's
intercarrier compensation recovery opportunity for the relevant year
and to apply the Rate-of-Return Carrier Baseline Adjustment Factor
correctly.
21. Monitoring Compliance with the Recovery Mechanism Rules. In the
USF/ICC Transformation Order, the Commission adopted measures to enable
it to monitor compliance with the recovery mechanism adopted for
incumbent LECs, requiring such carriers to file certain data on an
annual basis. The Commission delegated to the Bureau the responsibility
to develop and implement the data filing process. To minimize burdens,
the USF/ICC Transformation Order noted that the Commission would
``ensure that the data filed with USAC [(the Universal Service
Administrative Company), for the purpose of justifying a carrier's
ability to impose an ARC] is consistent with our request [for Recovery
Mechanism compliance monitoring data], so that carriers can use the
same format for both filings.'' However, because the Commission found
that data for monitoring compliance may be filed at the holding company
level, whereas the data needed for USAC will be at the study area
level, the filings cannot be the same. Thus, we clarify that the data
filing requirements for Recovery Mechanism compliance monitoring and
for ARC justification will be as consistent as possible, and will be in
the same or similar format in order to reduce or eliminate burdens
associated with filing wherever possible.
22. Prospective Treatment of VoIP Traffic. In the USF/ICC
Transformation Order, the Commission addressed the prospective
treatment of VoIP-PSTN traffic by adopting a transitional compensation
framework for such traffic. In so doing, the Commission adopted the
transitional rules specifying the default compensation for VoIP PSTN-
traffic. With regard to ``toll'' traffic (interstate and intrastate
calls), the Commission adopted rules specifying that the default
charges for ``toll'' VoIP-PSTN traffic will be equal to interstate
access rates applicable to non-VoIP traffic, both in terms of the rate
level and rate structure. We clarify that the prospective VoIP-PSTN
framework applies to the interstate rate as well as the interstate
structure, including both per-minute (usage sensitive) and flat-rated
(dedicated) charges.
23. To implement the VoIP-PSTN framework, the Commission encouraged
carriers to negotiate contracts to implement all intercarrier
compensation obligations. At the same time, the Commission permitted
carriers to include, in their intrastate tariffs, a default means of
determining which calls are subject to the VoIP-PSTN framework. In
particular, to address concerns that carriers could not identify which
calls originate and/or terminate in IP format, the Commission permitted
LECs ``to specify in its intrastate tariff that the default percentage
of traffic subject to the VoIP-PSTN framework is equal to the
percentage of VoIP subscribers in the state based on the Local
Competition Report, as released periodically.'' We clarify that this
default percentage is just one means by which a carrier could identify
the amount of traffic subject to the VoIP-PSTN framework, and carriers
are free to utilize traffic studies, or other reasonable and auditable
metrics to determine the percentage of traffic subject to the VoIP-PSTN
framework.
24. Operation of VoIP Rules When Interstate Access Rates Exceed
Intrastate Access Rates. The Commission adopted a bill-and-keep
methodology for all traffic and began the implementation process by
providing a measured transition to reduce the terminating rates for
most rate elements to bill-and-keep. In so doing, the Commission made
clear that, ``in cases where a provider's interstate terminating access
rates are higher than its intrastate terminating access rates,
intrastate rate reductions shall begin to occur at the stage of the
transition in which interstate rates come to parity with intrastate
rate levels.'' Thus, the Commission made clear that it did not intend,
under any circumstances, for rates to increase by virtue of its
reforms. Indeed, the Commission also capped most rates as of the
effective date of the rules, or December 29, 2011, to ensure that no
rates increased after the date of the Order. However, in instances
where intrastate rates are lower than interstate rates, the Commission
did not explain how the prospective VoIP rules would operate--whether
the interstate rate would apply in the intrastate tariff or whether the
intrastate rate, which is lower, would apply. Parties have notified us
that, absent a clarification, intrastate tariffs could have a higher
rate for VoIP traffic than other intrastate rates. Such an intrastate
rate disparity was not the Commission's intent and could lead to the
very arbitrage activities that the USF/ICC Transformation Order
intended to eliminate. The Commission held, for example, VoIP-PSTN
traffic ``will pay most of the same rates as all other traffic in the
second year of reform.'' Given the mechanics of the transition, this
would not be true if VoIP-PSTN traffic were subject to higher
intrastate access charges than other traffic, however.
[[Page 14301]]
Thus, we clarify that, in the limited circumstance of implementing the
new intercarrier compensation for VoIP regime adopted in the USF/ICC
Transformation Order, when a carrier's intrastate access rate is lower
than its corresponding interstate access rate, that carrier may not, in
its intrastate tariff, include a rate for toll VoIP-PSTN traffic that
is higher than its intrastate access rate.
25. Access Stimulation and Previous Rulings on End Users. In the
USF/ICC Transformation Order, the Commission adopted revisions to its
interstate switched access charge rules to address access stimulation.
Prior to the USF/ICC Transformation Order, the Commission adopted
several orders resolving complaints concerning access stimulation under
preexisting rules and compliance with the Communications Act. We
clarify that the USF/ICC Transformation Order complements these
previous decisions, and nothing in the USF/ICC Transformation Order
should be construed as overturning or superseding these previous
Commission decisions.
26. Access Stimulation and Fee Arrangements. In the USF/ICC
Transformation Order, the Commission adopted rules requiring refiling
of interstate access tariffs in certain circumstances when a local
exchange carrier (LEC) is engaged in access stimulation. In particular,
the Commission adopted a rule defining when such tariffs must be
refiled. In relevant part, the Commission explained that a LEC must
have entered into an access revenue sharing agreement ``whether
express, implied, written or oral, that, over the course of the
agreement, would directly or indirectly result in a net payment to the
other party (including affiliates) to the agreement, in which payment
by the rate-of-return LEC or competitive LEC is based on the billing or
collection of access charges from interexchange carriers or wireless
carriers.''
27. We clarify that any arrangement between a LEC and another
party, including affiliates, that results in the generation of switched
access traffic to the LEC and provides for the net payment of
consideration of any kind, whether fixed fee or otherwise, to the other
party, including an affiliate, is considered to be ``based upon the
billing or collection of access charges.''
28. Rural Transport Rule. In the USF/ICC Transformation Order, the
Commission adopted an ``interim default rule allocating responsibility
for transport costs applicable to non-access traffic exchanged between
CMRS providers and rural, rate-of-return regulated LECs,'' including
when a CMRS provider selects an interconnection point outside the LEC's
service area. We clarify that, in adopting the interim default rule,
the Commission did not intend to affect the existing rules governing
points of interconnection (POIs) between CMRS providers and price cap
carriers. Indeed, the Commission sought additional comment on issues
concerning POI obligations in the Further Notice of Proposed
Rulemaking, 76 FR 78384, December 16, 2011.
III. Procedural Matters
A. Paperwork Reduction Act
29. Although this document clarifies several existing information
collection requirements, it does not contain new or modified
information collection requirements subject to the Paperwork Reduction
Act of 1995 (PRA), Public Law 104-13. In addition, therefore, it does
not contain any new or modified information collection burden for small
business concerns with fewer than 25 employees, pursuant to the Small
Business Paperwork Relief Act of 2002, Public Law 107-198, see 44
U.S.C. 3506(c)(4).
B. Final Regulatory Flexibility Act Certification
30. Final Regulatory Flexibility Certification. The Regulatory
Flexibility Act of 1980, as amended (RFA) requires that a regulatory
flexibility analysis be prepared for rulemaking proceedings, unless the
agency certifies that ``the rule will not have a significant economic
impact on a substantial number of small entities.'' The RFA generally
defines ``small entity'' as having the same meaning as the terms
``small business,'' ``small organization,'' and ``small governmental
jurisdiction.'' In addition, the term ``small business'' has the same
meaning as the term ``small business concern'' under the Small Business
Act. A small business concern is one which: (1) Is independently owned
and operated; (2) is not dominant in its field of operation; and (3)
satisfies any additional criteria established by the Small Business
Administration (SBA).
31. This Order clarifies, but does not otherwise modify, the USF/
ICC Transformation Order. These clarifications do not create any
burdens, benefits, or requirements that were not addressed by the Final
Regulatory Flexibility Analysis attached to USF/ICC Transformation
Order. Therefore, we certify that the requirements of this Order will
not have a significant economic impact on a substantial number of small
entities. The Commission will send a copy of the Order including a copy
of this final certification, in a report to Congress pursuant to the
Small Business Regulatory Enforcement Fairness Act of 1996, see 5
U.S.C. 801(a)(1)(A). In addition, the Order and this certification will
be sent to the Chief Counsel for Advocacy of the Small Business
Administration, and will be published in the Federal Register. See 5
U.S.C. 605(b).
C. Congressional Review Act
32. The Commission will send a copy of this Order to Congress and
the Government Accountability Office pursuant to the Congressional
Review Act.
IV. Ordering Clauses
33. Accordingly, it is ordered, that pursuant to the authority
contained in sections 1, 2, 4(i), 201-206, 214, 218-220, 251, 252, 254,
256, 303(r), 332, and 403 of the Communications Act of 1934, as
amended, and section 706 of the Telecommunications Act of 1996, 47
U.S.C. 151, 152, 154(i), 201-206, 214, 218-220, 251, 252, 254, 256,
303(r), 332, 403, 1302, and pursuant to Sec. Sec. 0.91, 0.131,
0.201(d), 0.291, 0.331, 1.3, and 1.427 of the Commission's rules, 47
CFR 0.91, 0.131, 0.201(d), 0.291, 0.331, 1.3, 1.427 and pursuant to the
delegations of authority in paragraphs 581 and 1404 of FCC 11-161 (rel.
Nov. 18, 2011), that this Order is adopted, effective April 9, 2012,
except for those rules and requirements involving Paperwork Reduction
Act burdens, which shall become effective immediately upon announcement
in the Federal Register of OMB approval.
34. It is further ordered, that Parts 51 and 54 of the Commission's
rules, 47 CFR Parts 51, 54, are amended as set forth below, and such
rule amendments shall be effective April 9, 2012, except to the extent
they contain information collections subject to PRA review. The rules
that contain information collections subject to PRA review will become
effective upon announcement in the Federal Register of OMB approval and
an effective date of the rule(s).
35. It is further ordered, that the Commission shall send a copy of
this Order to Congress and the Government Accountability Office
pursuant to the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).
36. It is further ordered, that the Commission's Consumer and
Governmental Affairs Bureau, Reference Information Center, shall send a
copy of this Order, including the Final Regulatory Flexibility
Certification, to
[[Page 14302]]
the Chief Counsel for Advocacy of the Small Business Administration.
List of Subjects
47 CFR Part 51
Communications common carriers, Telecommunications.
47 CFR Part 54
Communications common carriers, Reporting and recordkeeping
requirements, Telecommunications, Telephone.
Federal Communications Commission.
Sharon E. Gillett,
Chief, Wireline Competition Bureau.
Final Rules
For the reasons discussed in the preamble, the Federal
Communications Commission amends 47 CFR parts 51 and 54 to read as
follows:
PART 51--INTERCONNECTION
0
1. The authority citation for part 51 continues to read as follows:
Authority: Sections 1-5, 7, 201-05, 207-09, 218, 220, 225-27,
251-54, 256, 271, 303(r), 332, 706 of the Telecommunication Act of
1996, 48 Stat. 1070, as amended, 1077; 47 U.S.C. 151-55, 157, 201-
05, 207-09, 218, 220, 225-27, 251-54, 256, 271, 303(r), 332, 1302,
47 U.S.C. 157 note, unless otherwise noted.
0
2. Amend Sec. 51.917 by revising paragraphs (d)(1)(i) through
(d)(1)(iii) to read as follows:
Sec. 51.917 Revenue recovery for rate-of-return carriers.
* * * * *
(d) * * *
(1) * * *
(i) Beginning July 1, 2012, a Rate-of-Return Carrier's eligible
recovery will be equal to the 2011 Rate-of-Return Carrier Base Period
Revenue multiplied by the Rate-of-Return Carrier Baseline Adjustment
Factor less:
(A) The Expected Revenues from Transitional Intrastate Access
Service for the year beginning July 1, 2012, reflecting forecasted
demand multiplied by the rates in the rate transition contained in
Sec. 51.909;
(B) The Expected Revenues from interstate switched access for the
year beginning July 1, 2012, reflecting forecasted demand multiplied by
the rates in the rate transition contained in Sec. 51.909; and
(C) Expected Net Reciprocal Compensation Revenues for the year
beginning July 1, 2012 using the target methodology required by Sec.
51.705.
(ii) Beginning July 1, 2013, a Rate-of-Return Carrier's eligible
recovery will be equal to the 2011 Rate-of-Return Carrier Base Period
Revenue multiplied by the Rate-of-Return Carrier Baseline Adjustment
Factor less:
(A) The Expected Revenues from Transitional Intrastate Access
Service for the year beginning July 1, 2013, reflecting forecasted
demand multiplied by the rates in the rate transition contained in
Sec. 51.909;
(B) The Expected Revenues from interstate switched access for the
year beginning July 1, 2013, reflecting forecasted demand multiplied by
the rates in the rate transition contained in Sec. 51.909; and
(C) Expected Net Reciprocal Compensation Revenues for the year
beginning July 1, 2013 using the target methodology required by Sec.
51.705.
(iii) Beginning July 1, 2014, a Rate-of-Return Carrier's eligible
recovery will be equal to the 2011 Rate-of-Return Carrier Base Period
Revenue multiplied by the Rate-of-Return Carrier Baseline Adjustment
Factor less:
(A) The Expected Revenues from Transitional Intrastate Access
Service for the year beginning July 1, 2014, reflecting forecasted
demand multiplied by the rates in the rate transition contained in
Sec. 51.909 (including the reduction in intrastate End Office Switched
Access Service rates), adjusted to reflect the True-Up Adjustment for
Transitional Intrastate Access Service for the year beginning July 1,
2012;
(B) The Expected Revenues from interstate switched access for the
year beginning July 1, 2014, reflecting forecasted demand multiplied by
the rates in the rate transition contained in Sec. 51.909, adjusted to
reflect the True-Up Adjustment for Interstate Switched Access for the
year beginning July 1, 2012; and
(C) Expected Net Reciprocal Compensation Revenues for the year
beginning July 1, 2014 using the target methodology required by Sec.
51.705, adjusted to reflect the True-Up Adjustment for Reciprocal
Compensation for the year beginning July 1, 2012.
(D) An amount equal to True-up Revenues for Access Recovery Charges
less Expected Revenues for Access Recovery Charges for the year
beginning July 1, 2012.
* * * * *
PART 54--UNIVERSAL SERVICE
0
3. The authority citation for part 54 continues to read as follows:
Authority: 47 U.S.C. 151, 154(i), 201, 205, 214, 219, 220, 254,
303(r), 403, and 1302 unless otherwise noted.
Sec. 54.301 [Amended]
0
4. In Sec. 54.301, remove paragraph (f).
0
5. Amend Sec. 54.307 by revising paragraph (e)(1)(ii) to read as
follows:
Sec. 54.307 Support to a competitive eligible telecommunications
carrier.
* * * * *
(e) * * *
(1) * * *
(ii) For the purpose of calculating the $3,000 per line limit, the
average of lines reported by a competitive eligible telecommunication
carrier pursuant to line count filings required for December 31, 2010,
and December 31, 2011 shall be used. The $3,000 per line limit shall be
applied to support amounts determined for each incumbent study area
served by the competitive eligible telecommunications carrier.
* * * * *
0
6. Amend Sec. 54.313 by revising paragraphs (a)(9) and (f)(2) to read
as follows:
Sec. 54.313 Annual reporting requirements for high-cost recipients.
(a) * * *
(9) Beginning April 1, 2013. To the extent the recipient serves
Tribal lands, documents or information demonstrating that the ETC had
discussions with Tribal governments that, at a minimum, included:
* * * * *
(f) * * *
(2) Privately held rate-of-return carriers only. A full and
complete annual report of the company's financial condition and
operations as of the end of the preceding fiscal year, which is audited
and certified by an independent certified public accountant in a form
satisfactory to the Commission, and accompanied by a report of such
audit. The annual report shall include balance sheets, income
statements, and cash flow statements along with necessary notes to
clarify the financial statements. The income statements shall itemize
revenue, including non-regulated revenue, by its sources. In lieu of
filing this annual report, any ETC that files annual financial reports
with the Rural Utilities Service may instead file a copy of its report
to the Rural Utilities Service.
* * * * *
Sec. 54.315 [Removed]
0
7. Section 54.315 is removed.
0
8. Amend Sec. 54.318 by revising paragraph (d) to read as follows:
Sec. 54.318 High-cost support; limitations on high-cost support.
* * * * *
[[Page 14303]]
(d) For purposes of this section, high-cost support is defined as
the support available pursuant to Sec. 36.631 of this chapter and
frozen high-cost support provided to price cap carriers to the extent
it is based on support previously provided pursuant to Sec. Sec.
36.631 or 54.309 of this chapter.
* * * * *
0
9. Amend Sec. 54.903 by revising paragraph (a)(2) to read as follows:
Sec. 54.903 Obligations of rate-of-return carriers and the
Administrator.
(a) * * *
(2) A rate-of-return carrier may submit the information in
paragraph (a) of this section in accordance with the schedule in Sec.
36.612 of this chapter, even if it is not required to do so. If a rate-
of-return carrier makes a filing under this paragraph, it shall
separately indicate any lines that it has acquired from another carrier
that it has not previously reported pursuant to paragraph (a) of this
section, identified by customer class and the carrier from which the
lines were acquired.
* * * * *
0
10. Amend Sec. 54.1003 by revising paragraph (b) to read as follows:
Sec. 54.1003 Provider eligibility.
* * * * *
An applicant shall have access to spectrum in an area that enables
it to satisfy the applicable performance requirements in order to
receive Mobility Fund Phase I support for that area. The applicant
shall certify, in a form acceptable to the Commission, that it has
received any Commission approvals necessary for such access at the time
it applies to participate in competitive bidding and at the time that
it applies for support and that it will retain such access for five (5)
years after the date on which it is authorized to receive support.
Pending requests for such approvals are not sufficient to satisfy this
requirement.
* * * * *
[FR Doc. 2012-5590 Filed 3-8-12; 8:45 am]
BILLING CODE 6712-01-P