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From ecsvax!ruslan%mcnc.org@XX.LCS.MIT.EDU Thu Jul 30 21:06:52 1987
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From: ecsvax.uucp!ruslan@mcnc.org (Robin C. LaPasha)
Newsgroups: comp.dcom.telecom
Subject: FCC Docket 87-215 (part 1 of 2)
Keywords: access charges, document
Message-Id: <3614@ecsvax.UUCP>
Date: 31 Jul 87 01:03:02 GMT
Distribution: usa
Organization: UNC Educational Computing Service
Lines: 319
Status: RO
Well, now that I've noticed that this is a Moderated group (um, before this
FCC stuff I wasn't an avid reader of this newsgroup,) I'll just up and
send this FCC docket (87-215) and not fear for duplication of efforts.
This is a copy from another guy in our user's group who downloaded it
from Genie... Part 1 of 2: first, the basic text.
Robin LaPasha ruslan@ecsvax
---------------------------------------------------------------------
Here at last is the full text of the FCC's warmly-received access charge
proposal. As indicated in paragraph 14, comments are due at the FCC by or on
August 24, 1987, and reply comments by or on September 14, 1987.
=============================================================================
Before The
Federal Communications Commission
Washington, D.C. 20554
In the Matter of )
)
Amendments of Part 69 ) CC Docket 87-215
of the Commission's Rules )
Relating to Enhanced Service
)
Providers )
NOTICE OF PROPOSED RULE MAKING
Adopted: June 10, 1987: Released: July 17, 1987
By The Commission:
I. INTRODUCTION
1. In 1983 we adopted a comprehensive "access charge" plan
for the recovery by local exchange carriers (LECs) of the costs
associated with the organization and termination of interstate
calls.1 At that time, we concluded that the immediate applica-
tion of this plan to certain providers of interstate services
might unduly burden their operations and cause disruptions in
provision of service to the public. Therefore, we granted
temporary exemptions from payment of access charges to certain
classes of exchange access users, including enhanced service
providers. Three years later, in the Second Report and Order in
CC Docket No. 86-1, in which we eliminated the exemption for
resale carriers, we announced our intention to reexamine the
exemption granted to enhanced service providers after our
consideration of certain related issues in the Computer III
proceeding.2 We recently completed that consideration.3 We
issue this Notice of Proposed Rule Making to consider whether
interstate access charges should be assessed on enhanced service
providers. We tentatively conclude that it is now appropriate
that enhanced service providers, like providers of interstate
basic services, be assessed access charges for their use of local
exchange facilities, and we propose amendments to our rules to
accomplish that end.
II. BACKGROUND
2. In the access charge proceeding, the first of our four
primary goals was the "elimination of unreasonable discrimination
and undue preferences among rates for interstate services."4
Specifically, our objective has been to distribute the costs of
exchange access in a fair and reasonable manner among all users
of exchange access service, irrespective of their designation as
carriers, non-carrier service providers, or private customers.5
We noted in 1983 that although many entities used exchange access
service, some were paying local business rates.6 We endeavored
to establish a more equitable sharing of costs, and initially
intended to impose interstate access charges on enhanced service
providers for their use
the same manner as MTS and some MTS equivalent services. To the
extent that this is the case, we concluded that equity and
efficiency require that those enhanced service providers pay the
same charges for exchange access.
3. In the discussion of the application of access charges
to enhanced service providers in the First Reconsideration, we
said that we wanted to develop a rate structure under which all
exchange access users were charged nn the same basis.8 In the
pre-access charge environment, facilities-based interstate
carriers other than AT&T (other common carriers or OCCs) were
paying carrier-type access charges in the form of ENFIA rates,
while WATS resellers, enhanced service providers, and shares were
paying much lower local business rates.9 Despite our resolve to
distribute the costs of exchange access among all users of access
service, we recognized that the immediate imposition of inter-
state access charges on all users of exchange access would have
some undesirable consequences. For example, we said that because
WATS resellers and enhanced service providers were currently
paying local business rates for their interstate access, the
immediate imposition of interstate access charges would have a
substantial and sudden impact on their costs, which could
undermine their ability to continue to provide service while they
were adjusting their operations in response to the new access
charge rules.10
4. Because of these concerns about rate shock, we exempted
certain exchange access users from the payment of certain
interstate access charges in the First Reconsideration.11 At
that time, we did not intend those exemptions to be permanent,12
and we have since eliminated several of them. For example, in CC
Docket No. 86-1, we considered the question of access charge
exemptions for resellers. In the First Report and Order in that
docket, we eliminated the exemptions from all access charges for
WATS resellers and from traffic-sensitive access charges for MTS
resellers, on the grounds that these exemptions were uneconomic
and inequitable and could no longer be supported by a rate shock
rationale.13 We said there that our goal was to promote
competition, not to protect competitors, and we regarded the
elimination of the exemptions as another step toward an
economically rational pricing scheme.14
5. In the 86-1 Second Report and Order, we eliminated the
eering MTS/WATS-type services, use local exchange facilities to
originate and terminate interstate traffic and should pay the
same charges as those assessed on other interexchange carriers
for their use of the same facilities.15 We also noted that our
purpose in adopting the exemption for data and telex carriers in
the first place had been to grant transitional rather than
permanent relief.16 Finally, we said that our decisions to apply
access charges to these resellers, as well as to resellers of MTS
and WATS, represented another step toward our objective of
distributing the costs of exchange access service in a fair and
reasonable manner.17
III. THE PROPOSED CHANGES IN THE ACCESS
CHARGE TREATMENT OF ENHANCED SERVICE PROVIDERS
6. When we modified our access charge plan in the First
Reconsideration, we granted enhanced service providers an
exemption from the payment of such charges because we were
concerned about rate shock. We feared that if we imposed full
interstate access charges on enhanced service providers, which
were then paying local business rates for their interstate
access, they would face large increases in their operating costs
and might no longer be viable.18 Therefore, instead of
immediately applying access charges to enhanced service
providers, we decided to fashion a transition plan to avoid the
severe rate impact of assessing such charges at the outset.19 As
a result, enhanced service providers currently pay local business
rates and subscriber line charges for their switched access
connections to local exchange company central offices.20
7. We are concerned that the charges currently paid by
enhanced service providers do not contribute sufficiently to the
costs of the exchange access facilities they use in offering
their services to the public. As we have frequently emphasized
in our various access charge orders, our ultimate objective is to
establish a set of rules that provide for recovery of the costs
of exchange access used in interstate service in a fair,
reasonable, and efficient manner from all users of access
service, regardless of their designation as carriers, enhanced
service providers, or private customers.21 Enhanced service
providers, like facilities-based interexchange carriers and
resellers, use the local network to provide interstate services.
To the extent that they are exempt from access charges, the other 8. As we stated in the Notice initiating the CC Docket
No. 86-1 proceeding, "concerns with 'rate shock' cannot sustain
an uneconomic pricing structure in perpetuity."22 Accordingly,
in previous orders in that docket, we have concluded that such
concerns no longer justify providing WATS resellers or resellers
of other services with exemptions from access charges.
Similarly, we tentatively conclude today that a rate shock
rationale no longer justifies an access charge exemption for
enhanced service providers. Enhanced service providers have had
ample notice of our ultimate intent to apply interstate access
charges to their operations and ample opportunity to adjust their
planning accordingly.23 We discussed our intent to impose access
charges on enhanced service providers almost four years ago in
the First Reconsideration in CC Docket No. 78-72.24 The access
charge plan itself has now been in place for almost three years.
Moreover, in the Second Report and Order in CC Docket No. 86-1,
we stated that after the resolution of certain issues with regard
to enhanced service providers in Computer III, we would consider
initiating a further Rule Making to consider the application of
access charges to enhanced service providers. Furthermore, we
propose that the application of access charges to enhanced
service providers become effective on January 1, 1988. This
should provide additional time for enhanced service providers to
incorporate this change into their business planning. In sum,
concerns over rate shock may justify a temporary, but not a
permanent, exemption, and it now appears to us that the temporary
period during which an access charge exemption was appropriate
has lapsed.
9. In addition, the financial impact on enhanced service
providers from the imposition of interstate access charges will
be substantially smaller than it would have been at the time of
the implementation of the access charge plan and will decrease in
the immediate future. As the end user contribution to common
line costs through subscriber line charges increases, the
contribution from carriers and enhanced service providers through
carrier common line (CCL) charges decreases. In May of 1984, the
CCL charge for both originating and terminating traffic was 5.24
cents per minute of use.25 Currently, the terminating charge is
4.33 cents per minute of use, and the originating charge is .69
cents per minute. This decline in CCL charges represents a
sizeable drop in the costs of interstate access charges, and will
mitigate the impact of the imposition of those charges on
enhanced service providers. With additional increases in
subscriber line charges scheduled for December 1988 and April
1989, the CCL charge for both originating and terminatig CCL charges.27
10. Parties are free to comment upon our tentative conclu-
sions about rate shock. Such comments should be accompanied by
detailed data supporting the arguments advanced therein.
Commenters addressing the rate shock issue should provide
information on network configurations used by enhanced service
providers and possible reconfigurations, as well as data on
industry rates, revenues, and growth rates going back at least
five years (which would include a period prior to the adoption of
our access charge plan). For example, we request comment on the
types of interstate transmission and exchange access facilities
that enhanced service providers are currently using, and on the
types of enhanced service providers that would be affected by the
elimination of the exemption from interstate access charges.
Parties should also discuss ways in which affected enhanced
service providers might reconfigure their networks in response to
rule changes of the kind proposed. In addition, we request
comment on the rates that enhanced service providers have charged
customers, as well as on industry revenues during that period.
If possible, commenters should provide data on the demand for
services and the revenues in the entire enhanced service provider
sector (including, but not limited to, the value added networks
and data base services), and on the possible effect of the
proposed rule changes on demand and revenues. Finally,
commenters should provide information on the growth rates of the
various segments of the enhanced services industry, and the way
in which those growth rates might be affected by the proposed
rule changes. To the extent that a commenter proposes that
application of access charges to enhanced service providers be
implemented on a date later than January 1, 1988, such proposal
should present specific arguments justifying the continuation of
the current special treatment of enhanced service providers for
the extended period.28
11. In addition, we request comment on issues involving
implementation of the proposal to assess interstate access
charges on enhanced service providers. We invite parties to
comment on the method of determining interstate and intrastate
usage of enhanced services for access charge billing. Parties
that address the measurement issue are requested to comment on
the possibility of using the Entry/Exit Surrogate (EES) method
currently used to estiention problems they think the
Commission should address prior to applying access charges to
enhanced service providers and to suggest possible approaches to
resolving these problems.
IV. PAPERWORK REDUCTION ACT
12. The proposal contained herein has been analyzed with
respect to the Paperwork Reduction Act of 1980 and found to
contain no new or modified form, information collection and/or
recordkeeping, labeling, disclosure, or record retention
requirements, and will not increase or decrease burden hours
imposed on the public.30
V. PROCEDURAL MATTERS
13. Pursuant to 47 U.S.C. 154(i), 154(j), 201-05, 218,
and 403, and 5 U.S.C. 553, NOTICE IS HEREBY GIVEN of the
proposed adoption of new or modified rules.31
14. All interested persons MAY FILE comments on the issues
and proposals discussed herein not later than August 24, 1987 and
replies may be filed not later than September 14, 1987. In
accordance with the provisions of Section 1.419 of the
Commission's Rules (47 C.F.R. 1.419) an original and five copies
of all statements, briefs, comments, or replies shall be filed
with the Federal Communications Commission, Washington, D.C.
20554 and all such filings will be available for public inspection
in the Docket Reference Room at the Commission's Washington, D.C.
office. In reaching its decision, the Commission may consider
informationtn or ideas is noted in the Order.
15. For purposes of this nonrestricted notice and comment
Rule Making proceeding, members of the public are advised that ex
parte contacts are permitted until the time a public notice is
issued stating that a substantial disposition of the matter is to
be considered in a forthcoming meeting or until a final order
disposing of the matter is adopted by the Commission, whichever
occurs earlier. In general, an ex parte presentation is any
written or oral communications (other than formal written
comments, pleadings, and oral arguments) between a person outside
the Commission and a Commissioner or a member of the Commission's
staff that addresses the merits of the proceeding.
16. Any person who submits a written ex parte presentation
must serve a copy of that presentation on the Commission's
Secretary for inclusion in the public file. Any person who makes
an oral ex parte presentation addressing matters not fully
covered in any previously-filed written comments for the
proceeding must prepare a written summary of that presentation,
and that written summary must be served on the Commission's
Secretary for inclusion into the public file, with a copy to the
Commission official receiving the oral presentation. Each ex
parte presentation described above must state on its face that
Secretary has been served, and must also state by docket number
the proceeding to which it relates. See generally, Section
1.1231 of the Commission's Rule, 47 C.F.R. 1.1231.
FEDERAL COMMUNICATIONS COMMISSION
William J. Tricarico
Secretary
From ecsvax!ruslan%mcnc.org@XX.LCS.MIT.EDU Thu Jul 30 22:34:56 1987
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From: ecsvax.uucp!ruslan@mcnc.org (Robin C. LaPasha)
Newsgroups: comp.dcom.telecom
Subject: FCC Docket 87-215 (Part 2 of 2)
Keywords: access charges, appendices, notes
Message-Id: <3615@ecsvax.UUCP>
Date: 31 Jul 87 02:31:39 GMT
Distribution: usa
Organization: UNC Educational Computing Service
Lines: 374
Status: RO
The rest of FCC docket 87-215; Part 2 of 2: the appendices, notes, etc..
Robin LaPasha ruslan@ecsvax.UUCP
--------------------------------------------------------------------------
APPENDIX A
Part 69 of Title 47 of the Code of Federal Regulations is
amended as follows:
Part 69 - ACCESS CHARGES
1. The authority citation for Part 69 continues to read as
follows:
AUTHORITY: Secs. 4, 201, 202, 203, 205, 218, 403, and 410
of the Communications Act as amended; 47 U.S.C. 154, 201, 202,
203, 205, 218, 403, and 410.
47 CFR Part 69 is amended to read as follows:
2. Section 69.2 is amended by revising paragraphs (m) and
(gg), and adding a new paragraph (nn), to read as follows:
69.2 Definitions.
* * * * *
(m) "End user" means any customer of an interstate or
foreign telecommunications service that is not a carrier or an
enhanced service provider except that a carrier other than a
telephone company or an enhanced service provider shall be deemed
to be an "end user" when such carrier or enhanced service
provider uses a telecommunications service for administrative
purposes and a person or entity that offers telecommunications
services exclusively as a reseller shall be deemed to be an "end
user" if all resale transmissions offered by such reseller
originate on the premises of such reseller;
* * * * *
(gg) "Access minutes" or "access minutes of use" is that
usage of exchange facilities in interstate or foreign service for
the purpose of calculating chargeable usage. On the originating
end of an interstate or foreign call, usage is to be measured
from the time the originating end user's call is delivered by the
telephone company and acknowledged as received by the
interexchange carrier or enhanced service provider's facilities
connected with the originating exchange. On the terminating end
of an interstate or foreign call, usage is to be measured from
the time the call is received by the end user in the terminating
exchange. Timing of usage at both the originating and
terminating end of an interstate of [sic] foreign call shall
terminate when the calling or called party disconnects, whichever
event is recognized first in the originating and terminating end
exchanges, as applicable.
* * * * *
(nn) "Enhanced service provider" means a person providing
"enhanced services" as defined in Section 64.702(a) of these
rules.
3. Section 69.5 is amended by revising paragraph (b) to
read as follows:
69.5 Persons to be assessed.
* * * * *
(b) Carrier's carrier charges shall be computed and
assessed upon all interexchange carriers or enhanced service
providers that use local exchange switching facilities for the
provision of interstate or foreign telecommunications services or
enhanced services.
* * * * *
4. Section 69.105 is amended by revising paragraphs (a)
and (c) to read as follows:
69.105 Carrier common line.
(a) A charge that is expressed in dollars and cents
per access minute of use shall be assessed upon all interexchange
carriers or enhanced service providers that use local exchange
common line facilities for the provision of interstate or foreign
telecommunications services or enhanced services.
* * * * *
(c) Any interexchange carrier or enhanced service
provider providing interstate or foreign telecommunications
services or enhanced services shall receive a credit for Carrier
Common Line charges to the extent that it resells services for
which these charges have already been assessed (e.g., MTS or MTS-
type service of other common carriers).
5. Section 69.106 is amended by revising paragraphs (a) to
read as follows:
69.106 Line termination.
(a) A charge that is expressed in dollars and cents
per access minute shall be assessed upon all interexchange
carriers or enhanced service providers that use local exchange
switching facilities for the provision of interstate or foreign
telecommunications services or enhanced services.
* * * * *
6. Section 69.107 is amended by revising paragraph (a) to
read as follows:
69.107 Local switching.
(a) Charges that are expressed in dollars and cents
per access minute of use shall be assessed upon all interexchange
carriers or enhanced service providers that use local exchange
switching facilities for the provision of interstate of foreign
telecommunications or enhanced services.
* * * * *
7. Section 69.108 is amended by revising paragraph (a) to
read as follows:
69.108 Intercept.
(a) A charge that is expressed in dollars and cents
per access minute of use shall be assessed upon all interexchange
carriers or enhanced service providers that use local exchange
switching facilities for the provision of interstate or foreign
telecommunications or enhanced services.
* * * * *
69.111 Common transport.
(a) A charge that is expressed in dollar and cents per
access minute shall be assessed upon all interexchange carriers
or enhanced service providers that use switching or transmission
facilities that are apportioned to the Common Transport element
for purposes of apportioning net investment.
* * * * *
9. Section 69.112 is amended by revising paragraphs (b)(1)
and (c) to read as follows:
69.112 Dedicated transport.
* * * * *
(b) Appropriate subelements shall be established for
the use of interface arrangements. Charges for such subelements
shall be assessed and computed as follows: (1) Such charges
shall be assessed upon all interexchange carriers or enhanced
service providers for the interface arrangements they use to
provide interstate or foreign telecommunications or enhanced
services;
(c) A charge for the use of voice grade transmission
facilities shall be assessed upon interexchange carriers or
enhanced service providers that use such facilities to provide
interstate or foreign telecommunications or enhanced services.
Such charges shall be expressed in dollars and services. Such
charges shall be expressed in dollars and cents per unit of
capacity. Total units of capacity provided to an interexchange
carrier or enhanced service provider shall be measured by
ascertaining the number of conversations that could be
transmitted simultaneously without producing blocking in the
dedicated transport facilities. The capacity unit charge for
carriers that offer MTS shall be weighted by a distance factor
that reflects the airline distance between the entry switch and
the interexchange facility. The capacity unit charged for other
carriers or enhanced service providers shall be weighted by a
distance between the entry switch and the interexchange facility
or the airline distance between the entry switch and any
interexchange facility of carriers that offer MTS that is located
within 5 miles of such carrier or enhanced service provider's
interexchange facility.
1. MTS and WATS Market Structure, Memoranum Opinion and Order,
97 FCC 2d 682 (1983) (hereinafter First Reconsideration).
2. WATS-Related and Other Amendments of Part 69 of the
Commission's Rules, Second Report and Order, CC Docket No. 86-1.
FCC 86-377, para. 15 (released August 26, 1986) (hereinafter 86-1
Second Report and Order).
3. We concluded in our Computer III proceeding that protocol
processing would continue to be treated as an enhanced service.
Note: 10-28-91
The remainder of this file became corrupted somehow and is
unavailable. About a hundred lines followed which cannot be recovered
at this time.