[Federal Register Volume 62, Number 87 (Tuesday, May 6, 1997)] [Rules and Regulations] [Pages 24583-24585] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 97-11683] ----------------------------------------------------------------------- FEDERAL COMMUNICATIONS COMMISSION 47 CFR Part 64 [CC Docket No. 96-128; DA 97-805] Pay Telephone Reclassification and Compensation AGENCY: Federal Communications Commission. ACTION: Final rule; waiver. ----------------------------------------------------------------------- SUMMARY: On April 15, 1997, the Common Carrier Bureau (``Bureau'') granted a limited waiver of the Commission's requirement that effective intrastate tariffs for payphone services be in compliance with federal guidelines, specifically that the tariffs comply with the ``new services'' test, as set forth in the Payphone Reclassification Proceeding, CC Docket No. 96-128 [``Payphone Order'' 61 FR 52307 (October 7, 1997); ``Order on Reconsideration'' 61 FR 65341 (December 12, 1996)]. Local exchange carriers (``LECs'') must comply with this requirement, among others, before they are eligible to receive the compensation from interexchange carriers (``IXCs'') that is mandated in that proceeding. Because some LEC intrastate tariffs for payphone services are not in full compliance with the Commission's guidelines, the Bureau granted all LECs a limited waiver until May 19, 1997 to file intrastate tariffs for payphone services consistent with the ``new services'' test, pursuant to the federal guidelines established in the Order on Reconsideration, subject to the terms discussed therein. DATES Effective: April 15, 1997. FOR FURTHER INFORMATION CONTACT: Michael Carowitz, 202-418-0960, Enforcement Division, Common Carrier Bureau. SUPPLEMENTARY INFORMATION: Synopsis of Order 1. Upon reviewing the contentions of the Regional Bell Operating Company (``RBOC'') Coalition and the language it cites from the two orders in the Payphone Reclassification Proceeding, the Bureau concluded that while the individual BOCs may not be in full compliance with the intrastate tariffing requirements of the Payphone Reclassification Proceeding, they have made a good faith effort to comply with the requirements. The RBOC Coalition concedes that the Commission's payphone orders, as clarified by the Bureau Waiver Order, mandate that the payphone services a LEC tariffs at the state level are subject to the new services test and that the requisite cost-support data must be submitted to the individual states. In addition, the RBOC Coalition states that it will take whatever action is necessary to comply with the Commission's orders in order to be eligible to receive payphone compensation at the earliest possible date. Therefore, the Bureau adopted an [[Page 24584]] order, which contains a limited waiver of the federal guidelines for intrastate tariffs, specifically the requirement that LECs have filed intrastate payphone service tariffs as required by the Order on Reconsideration and the Bureau Waiver Order that satisfy the new services test, and that effective intrastate payphone service tariffs comply with the ``new services'' test of the federal guidelines for the purpose of allowing a LEC to be eligible to receive payphone compensation. The existing intrastate tariffs for payphone services will continue in effect until the intrastate tariffs filed pursuant to the Order on Reconsideration, the Bureau Waiver Order and the instant order become effective. Because other LECs may also have failed to file the intrastate tariffs for payphone services that comply with the ``new services'' test of the federal guidelines, the Bureau applied this limited waiver to all LECs, with the limitations set forth therein. 2. Consistent with its conclusions above and in the interests of bringing LECs into compliance with the requirements of the Payphone Reclassification Proceeding, the Bureau waived for 45 days from the April 4, 1997 release date of the Bureau Waiver Order the requirement that LEC intrastate tariffs for payphone services comply with the ``new services'' test of the federal guidelines, as set forth in paragraph 163 of the Order on Reconsideration and clarified in the Bureau Waiver Order. LECs must file intrastate tariffs for payphone services, as required by the Payphone Reclassification Proceeding consistent with all the requirements set forth in the Order on Reconsideration, within 45 days of the April 4, 1997 release date of the Bureau Waiver Order. Any LEC that files these intrastate tariffs for payphone services within 45 days of the release date of the Bureau Waiver Order will be eligible to receive the payphone compensation provided by the Payphone Reclassification Proceeding as of April 15, 1997, as long as that LEC has complied with all of the other requirements set forth in paragraph 131 (and paragraph 132 for the Bell Operating Companies) of the Order on Reconsideration, subject to the clarifications and limited waiver in the Bureau Waiver Order. Under the terms of this limited waiver, a LEC must have in place intrastate tariffs for payphone services that are effective by April 15, 1997. The waiver permits the LEC to file intrastate tariffs that are consistent with the ``new services'' test of the federal guidelines set forth in the Order on Reconsideration, as clarified by the Bureau Waiver Order. The existing intrastate payphone service tariffs will continue in effect until the intrastate tariffs filed pursuant to the Bureau's order become effective. 3. The RBOC Coalition and Ameritech have committed, once the new intrastate tariffs are effective, to reimburse or provide credit to its customers for these payphone services from April 15, 1997, if newly tariffed rates, when effective, are lower than the existing rates. This action will help to mitigate any delay in having in effect intrastate tariffs that comply with the guidelines required by the Order on Reconsideration, including the concern raised by MCI that the subsidies from payphone services will not have been removed before the LECs receive payphone compensation. A LEC who seeks to rely on the waiver granted in the instant Order must also reimburse their customers or provide credit, from April 15, 1997, in situations where the newly tariffed rates are lower than the existing tariffed rates. The Bureau noted, in response to the arguments raised by the IXCs, that its order did not waive the requirement that subsidies be removed from local exchange service and exchange access services, the ``harm'' to the IXCs resulting from the delayed removal of subsidies from some intrastate payphone service tariffs will be limited. 4. The Bureau concluded that the waiver it granted, which is for a limited duration to address a specific compliance issue, is consistent with, and does not undermine, the rules adopted by the Commission in the Payphone Reclassification Proceeding. Therefore, it rejected the various alternatives to granting a waiver that were suggested by the American Public Communications Council (``APCC'') and the IXCs. More specifically, it concluded that APCC's proposal to require the refiling of all intrastate payphone service tariffs would unduly delay, and possibly undermine, the Commission's efforts to implement Section 276 and the congressional goals of ``promot[ing] competition among payphone service providers and promot[ing] the widespread deployment of payphone services to the benefit of the general public. * * *''. In response to Sprint's proposal that we delay the effective date of the LECs' interstate carrier common line reductions, the Bureau concluded that the better approach would be to evaluate requests for such treatment by individual LECs on a case-by-case basis. In addition, the Bureau declined to treat the request of the RBOC Coalition as an untimely petition for reconsideration of the Commission's rules, because the RBOC Coalition did not seek reconsideration of the rules adopted in the Payphone Reclassification Proceeding, but instead sought additional time, in a specific, limited circumstance, to comply with those rules. 5. In response to AT&T's arguments that a LEC must show proof that its intrastate tariffs have removed payphone subsidies consistent with Section 276, the Bureau noted the Commission concluded that ``[t]o receive compensation a LEC must be able to certify'' that it has satisfied each of the individual prerequisites to receiving the compensation mandated by the Payphone Reclassification Proceeding. The Commission did not require that the LECs file such a certification with it. Nothing in the Commission's orders, however, prohibits the IXCs obligated to pay compensation from requiring that their LEC payees provide such a certification for each prerequisite. Such an approach is consistent with the Commission's statement that ``we leave the details associated with the administration of this compensation mechanism to the parties to determine for themselves through mutual agreement.'' 6. Waiver of Commission rules is appropriate only if special circumstances warrant a deviation from the general rule and such deviation serves the public interest. Because the LECs are required to file, and the states are required to review, intrastate tariffs for payphone services consistent with federal guidelines, which, in some cases, may not have been previously filed in this manner at the intrastate level, the Bureau found that special circumstances exist in this case to grant a limited waiver of brief duration to address this responsibility. In addition, it found that its grant of a waiver in this limited circumstance, does not undermine, and is consistent with, the Commission's overall policies in CC Docket No. 96-128 to reclassify LEC payphone assets and ensure fair PSP compensation for all calls originated by payphones. Moreover, the states' review of the intrastate tariffs that are the subject of this limited waiver will enable them to determine whether these tariffs have been filed in accordance with the Commission's rules, including the ``new services'' test. Accordingly, the Bureau granted a limited waiver for 45 days from the April 4, 1997 release date of the Bureau Waiver Order the requirement that LEC intrastate tariffs for payphone services comply with the ``new services'' test of the federal guidelines, as set forth in paragraph 163 of the Order on Reconsideration. The [[Page 24585]] order did not waive any of the other requirements set forth in paragraphs 131-132 of the Order on Reconsideration. Ordering Clauses 7. Accordingly, it is ordered, pursuant to Sections 4(i,), 5(c), 201-205, 276 of the Communications Act of 1934, as amended, 47 U.S.C. 154(i), 155(c), 201-205, 276, and Sections 0.91 and 0.291 of the Commission's rules, 47 CFR 0.91 and 0.291, that limited waiver of the Commission's requirements to be eligible to receive the compensation provided by the Payphone Reclassification Proceeding, CC Docket No. 96- 128, is granted to the extent stated herein. 8. It is further ordered that this Order shall be effective upon release. List of Subjects in 47 CFR Part 64 Communications common carriers, Telephone. Federal Communications Commission. William F. Caton, Acting Secretary. [FR Doc. 97-11683 Filed 5-5-97; 8:45 am] BILLING CODE 6712-01-P