[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