Connect America Fund; a National Broadband Plan for Our Future; Establishing Just and Reasonable Rates for Local Exchange Carriers; High-Cost Universal Service Support, 14297-14303 [2012-5590]
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Federal Register / Vol. 77, No. 47 / Friday, March 9, 2012 / Rules and Regulations
that before a rule may take effect, the
agency promulgating the rule must
submit a rule report to each House of
the Congress and to the Comptroller
General of the United States. EPA will
submit a report containing this rule and
other required information to the U.S.
Senate, the U.S. House of
Representatives, and the Comptroller
General of the United States prior to
publication of this final rule in the
Federal Register. This final rule is not
a ‘‘major rule’’ as defined by 5 U.S.C.
804(2).
List of Subjects in 40 CFR Part 180
Environmental protection,
Administrative practice and procedure,
Agricultural commodities, Pesticides
and pests, Reporting and recordkeeping
requirements.
Dated: February 24, 2012.
Steven Bradbury,
Director, Office of Pesticide Programs.
Therefore, 40 CFR chapter I is
amended as follows:
PART 180—[AMENDED]
1. The authority citation for part 180
continues to read as follows:
■
Authority: 21 U.S.C. 321(q), 346a and 371.
2. Add § 180.658 to subpart C to read
as follows:
■
§ 180.658 Penthiopyrad; tolerances for
residues.
(a) General. (1) Tolerances are
established for residues of
penthiopyrad, including its metabolites
and degradates, in or on the
commodities in the table below.
Compliance with the tolerance levels
specified below is to be determined by
measuring only penthiopyrad (N-[2-(1,3dimethylbutyl)-3-thienyl]-1-methyl-3(trifluoromethyl)-1H-pyrazole-4carboxamide).
Parts per
million
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Commodity
Alfalfa, forage .............................
Alfalfa, hay ..................................
Almond, hulls ..............................
Apple, wet pomace .....................
Barley, grain ...............................
Barley, hay ..................................
Barley, milled byproducts ...........
Barley, straw ...............................
Beet, sugar, dried pulp ...............
Beet, sugar, roots .......................
Berry, low growing, subgroup
13–07G ...................................
Brassica, head and stem, subgroup 5A .................................
Brassica, leafy greens, subgroup
5B ............................................
Buckwheat, grain ........................
Canola ........................................
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7.0
20
6.0
1.5
0.15
80
0.90
1.0
1.5
0.5
3.0
5.0
50
0.15
1.5
14297
3-thienyl]-1-methyl-3-(trifluoromethyl)1H-pyrazole-4-carboxamide) and its
metabolite (1-methyl-3-trifluoromethyl40 1H-pyrazole-4-carboxamide), calculated
0.01 as the stoichiometric equivalent of
0.05
15 penthiopyrad, in or on the commodity.
Parts per
million
Commodity
Corn, field, forage .......................
Corn, field, grain .........................
Corn, field, refined oil .................
Corn, field, stover .......................
Corn, pop, grain ..........................
Corn, sweet, kernel plus cob
with husks removed ................
Cotton, seed ...............................
Cotton, gin byproducts ...............
Fruit, pome, group 11–10 ...........
Fruit, stone, group 12 .................
Grain, aspirated fractions ...........
Millet, spp. ..................................
Nut, tree, group 14 .....................
Oat, forage ..................................
Oat, grain ....................................
Oat, hay ......................................
Oat, straw ...................................
Pea and bean, dried shelled, except soybean, subgroup 6C ....
Peanut ........................................
Peanut, hay ................................
Peanut, refined oil ......................
Pistachio .....................................
Potato, processed potato waste
Rye, forage .................................
Rye, grain ...................................
Rye, straw ...................................
Sorghum, forage .........................
Sorghum, grain, grain .................
Sorghum, stover .........................
Soybean, seed ............................
Sunflower, seed ..........................
Teosinte, grain ............................
Tomato, paste .............................
Triticale, forage ...........................
Triticale, grain .............................
Triticale, hay ...............................
Triticale, straw ............................
Vegetable, bulb, group 3–07 ......
Vegetable, cucurbit, group 9 ......
Vegetable, foliage of legume,
group 7, hay ............................
Vegetable, foliage of legume,
group 7, vines/forage ..............
Vegetable, fruiting, group 8–10 ..
Vegetable, leafy, except brassica, group 4 ...........................
Vegetable, leaves of root and
tuber, group 2 .........................
Vegetable, legume, edible podded, subgroup 6A ...................
Vegetable, legume, succulent
shelled, subgroup 6B ..............
Vegetable, root, subgroup 1B,
except sugar beet ...................
Vegetable, tuber and corm, subgroup 1C .................................
Wheat, forage .............................
Wheat, grain ...............................
Wheat, hay .................................
Wheat, milled byproducts ...........
Wheat, straw ...............................
0.01
Commodity
0.01
1.5
15
0.50
4.0
30
0.80
0.06
40
0.15
80
1.0
0.40
0.04
30
0.06
0.06
0.20
40
0.15
1.0
40
0.80
15
0.40
1.5
0.15
3.5
40
0.15
80
1.0
3.0
0.60
Parts per
million
Cattle, fat ....................................
Cattle, meat ................................
Cattle, meat byproducts .............
Goat, fat ......................................
Goat, meat ..................................
Goat, meat byproducts ...............
Horse, fat ....................................
Horse, meat ................................
Horse, meat byproducts .............
Milk .............................................
Sheep, fat ...................................
Sheep, meat ...............................
Sheep, meat byproducts ............
0.03
0.03
0.09
0.03
0.03
0.09
0.03
0.03
0.09
0.02
0.03
0.03
0.09
(b) Section 18 emergency exemptions.
[Reserved]
(c) Tolerances with regional
registrations. [Reserved]
(d) Indirect or inadvertent residues.
[Reserved]
[FR Doc. 2012–5650 Filed 3–8–12; 8:45 am]
BILLING CODE 6560–50–P
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]
200
Connect America Fund; a National
Broadband Plan for Our Future;
Establishing Just and Reasonable
Rates for Local Exchange Carriers;
30 High-Cost Universal Service Support
50
3.0
50
4.0
Federal Communications
Commission.
ACTION: Final rule.
AGENCY:
In this document, the Federal
Communications Commission clarifies
3.0 certain rules. This document also
modifies certain initial filing deadlines
0.06 required to comply with the Paperwork
40 Reduction Act requirements, and finds
0.15
good cause to delete certain rules that
80
0.30 are now obsolete.
1.0 DATES: Effective April 9, 2012, except
for §§ 54.313(a)(9), 54.313(f)(2), and
54.1003(b), which contain information
(2) Tolerances are established for
collection requirements that are not
residues of penthiopyrad, including its
metabolites and degradates, in or on the effective until approved by the Office of
Management and Budget. The Federal
commodities in the table below.
Communications Commission will
Compliance with the tolerance levels
publish a document in the Federal
specified below is to be determined by
Register announcing the effective date
measuring only the sum of
penthiopyrad (N-[2-(1,3-dimethylbutyl)- for those sections.
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0.40
SUMMARY:
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Federal Register / Vol. 77, No. 47 / Friday, March 9, 2012 / Rules and Regulations
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: https://
transition.fcc.gov/Daily_Releases/
Daily_Business/2012/db0203/DA-12147A1.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
§§ 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 § 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.
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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
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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,
§ 54.318(d), makes clear that this rate
reduction only applies to HCLS and
HCMS. In this Order, the Wireline
Competition Bureau (Bureau) amends
§ 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 HighCost 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 § 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 § 54.209. The Order
states that § 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 § 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
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§ 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 fiveyear 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 statedesignated 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 § 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, § 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
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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
§ 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
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15:10 Mar 08, 2012
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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-ofreturn 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 § 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
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14299
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 § 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
§ 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
§ 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
§ 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 § 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
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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 § 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-ofreturn 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,
§§ 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
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15:10 Mar 08, 2012
Jkt 226001
the relevant year and to apply the Rateof-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
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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.
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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
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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
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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 §§ 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
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Federal Register / Vol. 77, No. 47 / Friday, March 9, 2012 / Rules and Regulations
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
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.
2. Amend § 51.917 by revising
paragraphs (d)(1)(i) through (d)(1)(iii) to
read as follows:
■
§ 51.917 Revenue recovery for rate-ofreturn carriers.
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*
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(d) * * *
(1) * * *
(i) Beginning July 1, 2012, a Rate-ofReturn 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 § 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
§ 51.909; and
(C) Expected Net Reciprocal
Compensation Revenues for the year
beginning July 1, 2012 using the target
methodology required by § 51.705.
(ii) Beginning July 1, 2013, a Rate-ofReturn Carrier’s eligible recovery will be
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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 § 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
§ 51.909; and
(C) Expected Net Reciprocal
Compensation Revenues for the year
beginning July 1, 2013 using the target
methodology required by § 51.705.
(iii) Beginning July 1, 2014, a Rate-ofReturn 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 § 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
§ 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 § 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.
*
*
*
*
*
§ 54.301
PART 54—UNIVERSAL SERVICE
■
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.
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[Amended]
4. In § 54.301, remove paragraph (f).
■ 5. Amend § 54.307 by revising
paragraph (e)(1)(ii) to read as follows:
■
§ 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.
*
*
*
*
*
■ 6. Amend § 54.313 by revising
paragraphs (a)(9) and (f)(2) to read as
follows:
§ 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.
*
*
*
*
*
§ 54.315
[Removed]
7. Section 54.315 is removed.
8. Amend § 54.318 by revising
paragraph (d) to read as follows:
■
§ 54.318 High-cost support; limitations on
high-cost support.
*
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Federal Register / Vol. 77, No. 47 / Friday, March 9, 2012 / Rules and Regulations
(d) For purposes of this section, highcost support is defined as the support
available pursuant to § 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 §§ 36.631 or
54.309 of this chapter.
*
*
*
*
*
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 1, 2, 4, 6, 13, 14, 15, 18,
19, 26, 33, 36, 42, 52, and 53
7. On page 12918 in § 52.219–30, in
the third column, the twenty-fifth line
from the top of the page is amended to
read: ‘‘Notice of Set-Aside for WomenOwned Small Business Concerns
Eligible Under the Women-Owned
Small Business Program (APR 2012)’’
[FR Doc. C1–2012–4475 Filed 3–8–12; 8:45 am]
BILLING CODE 1505–01–D
9. Amend § 54.903 by revising
paragraph (a)(2) to read as follows:
[FAC 2005–56; FAR Case 2010–015; Item
I; Docket 2010–0015, Sequence 1]
DEPARTMENT OF DEFENSE
§ 54.903 Obligations of rate-of-return
carriers and the Administrator.
RIN 9000–AL97
GENERAL SERVICES
ADMINISTRATION
(a) * * *
(2) A rate-of-return carrier may submit
the information in paragraph (a) of this
section in accordance with the schedule
in § 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.
*
*
*
*
*
Federal Acquisition Regulation;
Women-Owned Small Business
(WOSB) Program
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
Correction
48 CFR Parts 22, 25, and 52
■
10. Amend § 54.1003 by revising
paragraph (b) to read as follows:
■
§ 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
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In rule document 2012–4475
appearing on pages 12913 through
12924 in the issue of Friday, March 2,
2012, make the following corrections:
PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
1. On page 12918 in § 52.212–3, in the
first column, the fifteenth line from the
top of the page is amended to read:
‘‘Offeror Representations and
Certifications—Commercial Items (APR
2012)’’
2. On page 12918 in § 52.212–5, in the
first column, the fifth line from the
bottom of the page is amended to read:
‘‘Contract Terms and Conditions
Required to Implement Statutes or
Executive Orders—Commercial Items
(APR 2012)’’
3. On page 12918 in § 52.219–29, in
the second column, the first line from
the top of the page is amended to read:
‘‘(24) 52.219–29, Notice of Set-Aside for
Economically Disadvantaged WomenOwned Small Business (EDWOSB)
Concerns (APR 2012) (15 U.S.C.
637(m)).’’
4. On page 12918 in § 52.219–30, in
the second column, the third through
sixth lines are amended to read: ‘‘(25)
52.219–30, Notice of Set-Aside for
Women-Owned Small Business (WOSB)
Concerns Eligible Under the WOSB
Program (APR 2012) (15 U.S.C.
637(m)).’’
5. On page 12918 in § 52.219–1, in the
second column, the sixteenth line from
the top of the page is amended to read:
‘‘Small Business Program
Representations (APR 2012)’’
6. On page 12918 in § 52.219–29, in
the second column, the third line from
the bottom of the page is amended to
read: ‘‘Notice of Set-Aside for
Economically Disadvantaged WomenOwned Small Business Concerns (APR
2012)’’
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[FAC 2005–56; FAR Case 2011–030; Item
VI; Docket 2011–0030, Sequence 1]
RIN 9000–AM16
Federal Acquisition Regulation; New
Designated Country (Armenia) and
Other Trade Agreements Updates
Correction
In rule document 2012–4495
appearing on pages 12935 through
12937 in the issue of Friday, March 2,
2012, make the following corrections:
PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
1. On page 12936 in § 52.212–5, in the
second column, the eighteenth line from
the bottom of the page is amended to
read: ‘‘CONTRACT TERMS AND
CONDITIONS REQUIRED TO
IMPLEMENT STATUTES OR
EXECUTIVE ORDERS—COMMERCIAL
ITEMS (MAR 2012)’’.
2. On page 12936 in § 52.222–19, in
the second column, the thirteenth line
from the bottom of the page is amended
to read: ‘‘(27) 52.222–19, Child Labor—
Cooperation with Authorities and
Remedies (MAR 2012) (E.O. 13126).’’
3. On page 12936 in § 52.225–5, in the
second column, the eleventh line from
the bottom of the page is amended to
read: ‘‘(41) 52.225–5, Trade Agreements
(MAR 2012) (19 U.S.C. 2501, et seq.,
19 U.S.C. 3301 note).’’
4. On Page 12936 in § 52.213–4, in the
third column,the fourth line from the
top of the page is amended to read:
‘‘TERMS AND CONDITIONS—
SIMPLIFIED ACQUISITIONS (OTHER
THAN COMMERCIAL ITEMS) (MAR
2012)’’
5. On page 12936 in § 52.222–19, in
the third column, the ninth line from
the top of the page is amended to read:
‘‘(i) 52.222–19, Child Labor—
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Agencies
[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]
=======================================================================
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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: https://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.
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[[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.
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[FR Doc. 2012-5590 Filed 3-8-12; 8:45 am]
BILLING CODE 6712-01-P