Technology Transitions, Policies and Rules Governing Retirement of Copper Loops by Incumbent Local Exchange Carriers, 62632-62657 [2016-20215]
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Federal Register / Vol. 81, No. 176 / Monday, September 12, 2016 / Rules and Regulations
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47 CFR Parts 51 and 63
[GN Docket No. 13–5, RM–11358; FCC 16–
90]
Technology Transitions, Policies and
Rules Governing Retirement of Copper
Loops by Incumbent Local Exchange
Carriers
Federal Communications
Commission.
ACTION: Final rule.
AGENCY:
In this document, the Federal
Communications Commission
(Commission) initiated this rulemaking
in August 2015 to help guide and
accelerate the transitions from networks
based on TDM circuit-switched voice
services running on copper loops to allIP multi-media networks using copper,
co-axial cable, wireless, and fiber as
physical infrastructure. In this Second
Report and Order and Order on
Reconsideration, we take several actions
aimed at stripping away anachronistic
rules while ensuring that competition
continues to thrive and consumers are
protected during technology transitions.
DATES: Effective upon approval by the
Office of Management and Budget. The
Commission will publish a document in
the Federal Register announcing the
effective date(s).
FOR FURTHER INFORMATION CONTACT:
Megan Capasso, Wireline Competition
SUMMARY:
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Bureau, Competition Policy Division,
(202) 418–1151, or send an email to
Megan.Capasso@fcc.gov. For additional
information concerning the Paperwork
Reduction Act information collection
requirements contained in this
document, send an email to PRA@
fcc.gov or contact Nicole Ongele at (202)
418–2991.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s Second
Report and Order and Order on
Reconsideration in GN Docket No. 13–
5, RM–11358, FCC 16–90, adopted July
14, 2016 and released July 15, 2016. The
full text of this document is available for
public inspection during regular
business hours in the FCC Reference
Information Center, Portals II, 445 12th
Street SW., Room CY–A257,
Washington, DC 20554. It is available on
the Commission’s Web site at https://
apps.fcc.gov/edocs_public/attachmatch/
FCC-16-90A1.pdf. The Commission will
send a copy of this Second Report and
Order and Order on Reconsideration in
a report to be sent to Congress and the
Government Accountability Office
pursuant to the Congressional Review
Act, see 5 U.S.C. 801(a)(1)(A).
Synopsis
1. In the Second Report and Order, we
update our review and notice
procedures governing the filing and
processing of applications pursuant to
section 214 of the Communications Act
of 1934, as amended (the Act) to
discontinue, reduce, or impair service
(the section 214 discontinuance
process). Section 214 of the Act and the
Commission’s implementing rules
generally require telecommunications
carriers and interconnected Voice over
Internet Protocol (VoIP) providers to
obtain Commission authority to
discontinue interstate or foreign service
to a community or a party of a
community. The Commission relieved
Commercial Mobile Radio Service
(CMRS) providers of this obligation in
1994. The VoIP Discontinuance Order
moots any need to find a separate basis
of authority over VoIP providers in
connection with this Order.
2. All applicants seeking to
discontinue a service are currently
required to file a section 214 application
in accordance with rules governing
notice, opportunity for comment,
review, and processing requirements.
Commenters have 15 days to file
objections if the applicant is a nondominant carrier and 30 days to file if
the applicant is a dominant carrier. The
application is automatically granted on
the 31st day after filing for nondominant carriers and on the 60th day
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after filing for dominant carriers unless
the Wireline Competition Bureau
(Bureau) has notified the applicant that
the grant will not be automatically
effective. The Bureau has considerable
discretion in determining whether to
grant such authority based on the
application, responsive comments, and
other filings. The Bureau will normally
authorize the discontinuance ‘‘unless it
is shown that customers would be
unable to receive service or a reasonable
substitute from another carrier or that
the public convenience or necessity is
otherwise adversely affected.’’
3. In evaluating whether the
discontinuance will harm the public
interest, the Commission has employed
a five factor balancing test to analyze:
(1) The financial impact on the common
carrier of continuing to provide the
service; (2) the need for the service in
general; (3) the need for the particular
facilities in question; (4) increased
charges for alternative services; and (5)
the existence, availability, and adequacy
of alternatives. We find that the
existence, availability, and adequacy of
alternatives, or the adequate
replacement factor, has heightened
importance in the context of technology
transitions. Consistent with the
proposals in the Emerging Wireline
Further Notice of Proposed Rulemaking
(FNPRM), 80 FR 57768–01, we now
adopt an updated approach for
preparing, reviewing, and evaluating
section 214 discontinuance applications
that relate to technology transitions
(technology transition discontinuance
applications).
4. The Framework for the Adequate
Replacement Test. We conclude that the
public interest requires that applications
seeking to discontinue a legacy timedivision multiplexed (TDM)-based voice
service as part of a transition to a new
technology, whether IP, wireless, or
another type, indicate that a technology
transition is implicated. The
requirements we articulate for eligibility
for automatic grant of discontinuance
applications involving a technology
transition apply only to legacy voice
services. Other services to which section
214(a) discontinuance obligations apply
and voice services subject to section
214(a) being discontinued in nontechnology transitions circumstances
will continue to be subject to our preexisting discontinuance process, which
provides the public an opportunity to
comment and to which our traditional
five-factor balancing test applies. We
decline to apply the adequate
replacement test to legacy data services.
For any other domestic service for
which a discontinuance application is
filed, section 63.71(e) of our rules
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(redesignated as section 63.71(f) herein)
shall continue to govern automatic grant
procedures. Unlike traditional
applicants, technology transition
discontinuance applicants seeking
streamlined treatment will be required
to submit with their application either
a certification or a showing as to
whether an adequate replacement exists
in the service area. Applications either
(i) certifying or (ii) demonstrating
successfully through their showing that
an adequate replacement exists will be
eligible for automatic grant pursuant to
section 63.71(d) of the Commission’s
rules as long as the existing
requirements for automatic grant are
satisfied. We stress that attempting to
satisfy the adequate replacement test is
entirely voluntary for an applicant.
Voice technology transition
discontinuance applicants that decline
to pursue this path are not eligible for
streamlined treatment and will have
their applications evaluated on a nonstreamlined basis under the traditional
five factor test. Moreover, the showing
made regarding an adequate alternative
under the five factor test does not
require the network performance testing
and other specific showings required
under the adequate replacement test for
streamlined treatment.
5. We further conclude that an
applicant for a technology transition
discontinuance may demonstrate that a
service is an adequate replacement for a
legacy voice service by certifying or
showing that one or more replacement
service(s) offers all of the following: (i)
Substantially similar levels of network
infrastructure and service quality as the
applicant service; (ii) compliance with
existing federal and/or industry
standards required to ensure that critical
applications such as 911, network
security, and applications for
individuals with disabilities remain
available; and (iii) interoperability and
compatibility with an enumerated list of
applications and functionalities
determined to be key to consumers and
competitors. One replacement service
must satisfy all the criteria to retain
eligibility for automatic grant.
6. Technology transition applicants
can either demonstrate compliance with
these objective criteria or make a
demonstration that, despite not being
able to meet the criteria, the totality of
the circumstances demonstrates that an
adequate replacement nonetheless
exists. If an applicant cannot certify or
make that showing, or declines to
pursue the voluntary path of
streamlined treatment, it must include
in its application an explanation of how
its proposed discontinuance will not
harm the public interest, with specific
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reference to the five factors the
Commission traditionally considers.
The Bureau will then weigh that
information as part of the traditional
multi-factor evaluation, placing
particular scrutiny on the adequate
replacement factor under the newlyenhanced test. Only meaningful, factual
objections regarding the reliability of
certifications provided will be
persuasive. Any entity or individual
may object to the certification or
showing, and the Commission will
consider the objection and determine if
the applicant needs to provide
additional support.
7. In adopting objective, quantifiable
standards for the adequate replacement
test, we seek to minimize uncertainty or
confusion that could slow or even
discourage technology transitions.
Moreover, we do not want to stifle the
new and innovative ways that a
replacement service could benefit
customers. For that reason, we
announce a test that sets clear,
achievable benchmarks but leaves
flexibility, recognizing that a shift from
a TDM network to a new technology
will never be a purely apples-to-apples
comparison.
8. The approach we adopt today
places a new prominence on the
adequate replacement analysis. This
new emphasis does not, however,
displace the Commission’s traditional
five-factor test outside the context of
technology transition discontinuance
applications seeking streamlined
treatment. The five factor test is aimed
at promoting—and where necessary,
balancing—the four missions of our
agency, namely to protect consumers,
promote competition, ensure universal
access, and strengthen public safety.
Four of the factors—(1) the financial
impact on the common carrier of
continuing to provide service, (2) the
need for the service in general, (3) the
need for the particular facilities in
question, and (4) increased charges for
alternative services—offer a traditional
balancing of the financial and
competitive needs of industry against
the values of consumer affordability and
expectations.
9. The adequate replacement factor, in
contrast, aims to balance all four
missions as a means of ensuring all
Americans benefit from these exciting
new technologies. This has always
required a deeper analysis, but that need
is particularly acute in the context of
discontinuances involving legacy voice
services related to technology
transitions. We disagree that the action
we take today is inconsistent with the
Commission’s recent revisions to the
universal service program rules,
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particularly in the Connect America
Fund proceeding. We made it clear in
the December 2014 Connect America
Order that even though we were
forbearing ‘‘from enforcing a federal
high-cost requirement that price cap
carriers offer voice telephony service
throughout their service areas pursuant
to section 214(e)(1)(A) in three types of
geographic areas,’’ those carriers are still
subject to section 214(a)’s mandate
regarding the need for Commission
authorization before discontinuing a
service. We conclude, however, that
certain principles—such as access to
critical applications such as 911—are
not subject to balancing and must
remain available and fully functional as
part of any transition. The streamlined,
technology neutral framework that we
adopt will help to protect those
principles.
10. Limited to the Technology
Transition Context. We conclude that
the adequate replacement test we
discuss here should only apply to any
application involving a technology
transition from TDM to IP or wireline to
wireless in which the applicant intends
to discontinue completely customers’
access to the legacy voice service. The
components of the test are specifically
tailored to measure considerations
relevant to a technology transition that
are not as prominent in other contexts.
For example, requiring minor
discontinuances of particular
applications or functionalities (such as
operator-assisted functionalities)
associated with a service to demonstrate
that an adequate replacement is
available is not necessary. We conclude
that limiting the test to the context of
technology transitions accomplishes our
regulatory goals in an appropriately
narrow manner.
11. No Presumptions or Exclusions
Regarding Specific Technologies. We
decline to presume that particular
technologies, by their nature, represent
an adequate replacement for legacy
voice services in all instances, because
our public interest analysis demands
that applicants provide objective
evidence showing a replacement service
will provide quality service and access
to needed applications and
functionalities. IP-based and other new
services should demonstrate that they
meet consumers’ and providers’
fundamental needs through satisfaction
of performance standards, compliance
with Commission rules, and harmony
with key legacy functionalities and
applications before we grant permission
to remove existing voice services from
the marketplace. It is critical that we
retain the ability to examine each
discontinuance application given the
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potential for variability in different
implementations of the same
technology. The same technology could
nonetheless utilize different features, be
produced by different vendors with
different methodologies, and use
different quality measurement
techniques, any of which could result in
varied service quality and thus lead to
potential interoperability issues. We
will allow testing data from one area to
be used to support future
discontinuance applications in another
area, conditioned on certifications that
the network is built according to the
same detailed design plan as the
network supporting the service under
the prior discontinuance. We believe the
current discontinuance process, subject
to the changes adopted today, provides
the appropriate balance of allowing for
public comment and objections while
retaining the opportunity for speedy and
effective resolutions.
12. We retain largely the same
standards for automatic grant that apply
under the current regime for the special
context of technology transitions.
However, we allow a more streamlined
approach for discontinuances involving
services that are substantially similar to
those for which a section 214
discontinuance has previously been
approved. We also take action to
streamline our section 214 process in
instances where consumers no longer
subscribe to legacy voice services.
Although our actions today focus
primarily on technology transitions, we
recognize that the market is constantly
evolving even outside the context of
these crucial transitions. For that
reason, we allow a section 214
discontinuance application be eligible
for automatic grant without any further
showing if the applicant can
demonstrate that the service has zero
customers in the relevant service area
and no requests for service in the last
six months.
13. No Arbitrary Timelines. We do not
establish timelines for reviewing
applications that are not eligible for
automatic grant, because the public
interest demands that we provide
appropriate scrutiny and careful review
to discontinuance applications related
to technology transitions given their
novelty and complexity, and we cannot
guarantee at this time how long that
process will take. An application will
remain under consideration for
automatic grant unless: (i) The
Commission receives comments setting
forth significant, meaningful, evidencebased objections or (ii) after reviewing
the application, Commission staff has
concerns about the impact of the
planned discontinuance on the public
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convenience and necessity. Should such
an objection arise, we will review the
applicant’s and objector’s showings as
expeditiously as possible. We do intend
to rely on the efficiencies of precedent
and data provided regarding similar
transitions when factually or legally
similar disputes arise. Finally, should it
be determined that the existing process
is resulting in unacceptable delay or
inefficiency, we will revisit our decision
not to establish timeframes for acting on
section 214 applications.
14. We also decline to adopt a hard
deadline for when a Public Notice
should be released for a technology
transition discontinuance application
following its submission. Staff review
applications for completeness, accuracy,
and fulfillment of all predicate
requirements, including providing
notice to affected customers, before
issuing the Public Notice. Imposing a
hard deadline could result in issuance
of public notice of defective
applications, and commenters have not
identified a pattern of undue delay.
Based on actual experience with the
streamlined process we adopt today, we
can revisit this issue at a future date if
necessary. Moreover, to facilitate public
input on these types of applications, the
Bureau will not only continue to list
such notices prominently, but will also
identify them specifically as
applications related to technology
transitions on the Commission’s Web
site.
15. An Objective Factor-Based Test Is
Preferable To A Subjective Case-by-Case
Approach for Technology Transition
Discontinuances. The three-pronged test
tied to specific benchmarks will allow
industry to establish reasonable
expectations about the investments
necessary to satisfy the test while also
protecting consumers. Notably, through
the detailed articulation that we provide
today, the adequate replacement
standard will be substantially clearer
than it has been to this point.
16. Successful Prior Certifications Will
Streamline Future Applications. We
will allow a repeat applicant for a 214
discontinuance application in the
technology transition context to rely on
its successful certification of
compliance with all three prongs of the
adequate replacement test in a
previously approved application
involving a substantially similar service.
A substantially similar service is one
offered by the same applicant relying on
the same technology and utilizing a
comparable network infrastructure. The
practical effect of this rule is to allow
the applicant to bypass the performance
testing requirements described below.
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17. Commenters will have the
opportunity to rebut an applicant’s
planned reliance on a previous
application if they can offer substantial
evidence that the technology or network
infrastructure are not in fact
substantially similar to the service
subject to the certifications in the
previous application or the
certifications have been proven
unreliable, based on significant
consumer complaints or new
independent data.
18. Treating First and Third Party
Services Equally. We conclude that both
first and third party services should be
eligible as potential adequate
replacement services. Third party
services have always been eligible for
consideration under the 214
discontinuance process as potential
adequate replacements. The question is
whether an adequate replacement exists
in the service area, not who provides the
service that provides that adequate
replacement.
19. Applicants seeking to discontinue
a service have the burden of
demonstrating that the discontinuance
will not harm the public interest.
Applicants relying on a third party
service will be allowed to make a prima
facie showing based on publicly
available information as to whether the
third party service meets our test as an
adequate replacement. We will take into
account an applicant’s faultless inability
to access necessary data and
information from a third party when
reviewing any application that relies on
the existence of third party services to
meet the adequate replacement test. Any
commenter opposing grant of a section
214 application relying on a third party
service must rebut the prima facie
showing made by the applicant. Should
the objecting commenter raise legitimate
concerns, we will remove the
application from consideration for
automatic grant. In attempting to rebut
such a showing, members of the public
who use the third party service can
agree to participate in tests necessary to
measure network performance, as
required under the criteria.
20. Requiring A Single Service to
Satisfy All Prongs. To ensure that
consumers receive the integrated service
experience they need and deserve, we
require that a single service (whether
first- or third-party) satisfy all three
prongs of the adequate replacement test
in order to be eligible for automatic
grant.
21. Network Infrastructure and
Service Quality. To satisfy the first
prong of the adequate replacement test,
and thereby be eligible for automatic
grant, an applicant must demonstrate
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that at least one service provides:
Substantially similar network
performance as the service being
discontinued; substantially similar
service availability as the service being
discontinued; and coverage to the entire
affected geographic service area.
22. Customers rightfully expect that
any adequate replacement for a wireline
legacy voice service will be available in
the same coverage area, allow customers
to make and receive high quality voice
calls consistently, and support the
applications and functionalities on
which they rely. However, we recognize
that a comparison between a legacy
voice service and its potential
replacement is not an apples-to-apples
comparison. We thus provide applicants
the flexibility either to demonstrate
compliance with all of the benchmarks,
or to provide evidence that
demonstrates that, despite falling short
of certain specified benchmarks, the
network providing the replacement
service nonetheless provides
substantially similar performance and
availability when considering the
totality of the circumstances. A
replacement network’s performance will
be evaluated against objective
benchmarks, but falling short of any
single metric will not automatically
disqualify it from being considered
adequate. The actual performance
numbers will be evaluated in a holistic
manner to determine the overall
network performance, enabling the
carrier to show that the totality of
circumstances demonstrate adequate
performance. Legacy data services will
not be subject to the adequate
replacement test and associated
streamlined processing that we
announce today. Rather, those services
will be evaluated under the traditional
process, and the Commission will
continue to closely scrutinize such
applications in determining whether the
public interest would be harmed by the
discontinuance.
23. We adopt benchmarks related to
various metrics that, if satisfied, would
demonstrate that a service is performing
adequately enough to serve as a
replacement for a legacy TDM service.
There are two ways of demonstrating
adequacy: (i) Through performance
testing that demonstrates satisfaction of
each of the benchmarks, or (ii) a
demonstration, based on the totality of
the circumstances, the network still
provides substantially similar
performance and availability. As an
example, an applicant might fall just
short of our data loss benchmark but
nonetheless make a showing that the
totality of the circumstances
demonstrates adequate performance.
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That showing would presumably
include test data demonstrating
achievement of the remaining
benchmarks as well as an explanation
for why the network fell short of the
data loss benchmark and any planned
improvements to the network which
would allow for enhanced performance
in the future. We interpret
‘‘substantially similar’’ in this context to
mean that the network operates at a
sufficient level with respect to the
metrics identified below, such that the
network platform will ensure adequate
service quality for interactive and
highly-interactive applications or
services, in particular voice service
quality, and support applications and
functionalities that run on those
services. Under either approach, the
applicant initially provides the results
of network testing, as well as outage and
repair reporting, that demonstrate
achievement of the benchmarks,
although it may rely in subsequent
applications on testing data from a
previously approved discontinuance
application.
24. Network Performance. We find
that there are two essential metrics used
to determine whether a particular data
transmission network is an adequate
replacement for a legacy wireline voice
service: Latency and data loss. Failure to
satisfy a single metric is not
disqualifying. An applicant may either
demonstrate achievement of both
benchmarks, thus presumptively
showing adequate performance, or
demonstrate that the totality of the
circumstances, including the voice
service availability and network
coverage criteria, demonstrates adequate
network performance. By
‘‘presumptive’’ we refer to the fact the
Commission may seek additional proof
beyond certification.
25. We rely on industry technical
standards and our approaches in other
proceedings to adopt the benchmarks
we will use in our section 214 process.
The performance benchmarks are
measured in accordance with our
Technical Appendix. We define the
latency benchmark as 100 milliseconds
or less for 95% of all peak period round
trip measurements, a benchmark
consistent with previous Commission
decisions in the universal service
context, informed by ITU–T standards,
and comparable to demonstrated
performance under the Commission’s
Measuring Broadband America program.
This metric also provides for a latency
performance that will allow the
applicant’s network to perform its
portion of an end-to-end voice call. We
define the data loss metric as less than
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or equal to 1 percent for packet based
networks.
26. Latency and data loss are the
terms used for the two essential metrics
described above for measuring network
performance as a means of comparison
to a legacy wireline voice service. We
plan to apply the same metrics and
benchmarks to all replacements,
whether fixed or mobile, wireline or
wireless, terrestrial or satellite. These
metrics reflect the type of performance
that should be expected of a
sophisticated packet-based network
infrastructure that can carry one or more
applications including voice calls, fax,
security/health alerts, gaming, video
streaming and video teleconferencing.
In order to be eligible for automatic
grant, an applicant must be prepared to
demonstrate the replacement service
will perform as effectively as the legacy
voice service.
27. Latency. In order for a
replacement service to meet this aspect
of the network performance prong and
be eligible for streamlined treatment,
latency must be limited to 100
milliseconds or less. Latency measures
the time it takes for a data packet to
travel from one point to another in a
network, and is a significant factor in
analyzing a network’s performance.
Measuring Broadband America data
shows that wireline broadband
providers meet this requirement. The
Commission has measured latency as
the round-trip time from the consumer’s
home to the closest designated speed
measurement server within the
provider’s network and back.
28. AT&T asserts that the 100
millisecond roundtrip benchmark
cannot be applied to the network
architecture of certain non-packet based
wireless services and that, as a result,
the Commission should ‘‘adopt[ ] a
threshold of less than 200 milliseconds
measured mouth-to-ear.’’ The 100
millisecond roundtrip standard is
consistent with the CAF Phase II Service
Obligations Order, where the Wireline
Competition Bureau explained that it
designed the 100 millisecond roundtrip
latency standard to ensure that
consumers ultimately achieve 200
milliseconds mouth-to-ear latency. That
being said, the totality of the
circumstances approach allows
applicants to provide objective evidence
to support their showing that the
replacement service would offer
substantially similar network
performance and service availability,
even if that evidence is not identical to
the exact metrics that we identify. Our
metrics, benchmarks, and
methodologies measure packet-based
technologies, which we expect will
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most frequently be associated with next
generation technologies. We also note
several examples of packet mobile
networks. Specifically, because the 100
millisecond roundtrip standard is
designed to ensure that consumers
achieve 200 millisecond mouth-to-ear
latency, objective evidence that a nonpacket based replacement service meets
the underlying 200 millisecond mouthto-ear standard would be compelling as
a component of a totality of the
circumstances showing.
29. Data Loss. In order for a
replacement service to meet this aspect
of the network performance prong, data
loss should be less than 1 percent for
packet-based networks. Data loss
exceeding 1 percent for packet-based
networks would cause performance
issues that warrant further examination.
Applicants would need to demonstrate
data loss is lower than this benchmark
in order to have the opportunity to be
eligible for automatic grant. Data loss is
often referred to as the IP Packet Loss
Ratio (IPLR) in IP networks. This metric
measures the ratio of total lost IP packet
outcomes to total transmitted IP packets
in the environment under review.
Consecutive packet loss is of particular
concern for certain time-sensitive
applications, such as voice and video.
30. We have chosen a packet loss rate
of less than 1 percent because it will
allow for successful quality voice calls
and other highly interactive
applications. We further find that this
data loss benchmark is appropriate to
ensure successful transmission of voice
and video communications.
31. Although the network
infrastructure and the services that run
over the network are distinct, network
performance affects the service quality
being delivered to customers and thus
should be measured. These
measurements are an objective tool for
determining when an application will
be eligible for automatic grant; if the
applicant cannot demonstrate that, it is
appropriate to engage in further
examination to ensure the services
provided over newer technologies are
adequate replacements for legacy voice
services.
32. We recognize that carriers may
incur costs in order to demonstrate they
meet these benchmarks, and have taken
steps to limit the burden of making
these demonstrations in the section 214
discontinuance process. We allow
successful testing results to be used as
support for future applications
involving the same applicant offering a
service on a substantially similar
network. Moreover, carriers are not
required to meet these standards to file
a section 214 discontinuance; if a carrier
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does not wish to present such
information, its section 214 application
will not be eligible for automatic grant,
but rather will be subject to the
traditional review process. And finally,
we exempt small providers from the
requirement to submit testing results in
order to be eligible for automatic grant.
33. Wireless—Packet Networks. We
intend to rely on the same metrics and
benchmarks, applicable to both wireline
and wireless networks, when we
examine whether a mobile or fixed
wireless network can qualify as an
adequate replacement. Appendix B
allows for generalized network testing
standards which are applicable to both
wireline and wireless networks.
34. Testing Methodology and
Parameters. We find testing is
necessary, at least initially, to ensure
that applicants actually meet the
benchmarks we have established to be
eligible for automatic grant. Established
testing parameters will ensure that the
Commission analyzes similar data sets
from applicants in the technology
transitions. Although we expect that the
Order and Technical Appendix will
encompass all of the information that
applicants need, we delegate authority
to the Office of Engineering and
Technology, working in consultation
with the Wireline Competition Bureau
and the Wireless Telecommunications
Bureau, to issue more specific testing
requirements, as necessary.
35. In order to comply with the testing
parameters listed below, applicants
filing their first technology transition
discontinuance application will need to
begin testing at least 30 days prior to
filing that application. The 30-day test
period is intended to ensure that the
network is in a stable state and to allow
for long-term projection of network
infrastructure performance. Shorter
periods would not account for variation
in patterns and usage and could allow
the applicant time to traffic engineer
their network so that the chosen test
customers performed better for a short
period of time.
36. To demonstrate that replacement
services will have adequate network
performance and thereby remain eligible
for streamlined treatment for a
technology transition discontinuance,
the provider must perform the following
actions, which are detailed in Appendix
B to this Order:
• Conduct 30 days of performance
testing. This timeframe allows for: (1)
Testing of weekday and weekend
periods with sufficient repetition to
ensure a single outlying week was not
chosen, and (2) monthly variation in
network usage for individuals paying
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bills, 30 day/monthly data caps and
enterprise end of month processing.
• Use a randomly selected sample
group of a total of 50 residential and 50
enterprise customer locations per
potential replacement service for
testing, to ensure a representative
sample. We recognize that fully random
selection may not be possible because
customer consent is required and other
factors may impact the selection
process. If the area where service is
proposed to be discontinued is very
large, for example covering several
states or Tribal lands, more than
100,000 customers, or containing
several legacy Local Access Target
Areas, then several separate sample sets
of 30–50 consumer locations would be
required per state, region, or
geographically-referenced area.
• Report results to the Commission.
• Host a Web site or Web sites where
all test data, results, test plan and all
associated documentation that is not
subject to a confidentiality request or
confidential pursuant to section 0.441 et
seq. of our rules are available publicly.
We would generally consider the
detailed design document a document
that warrants confidential treatment.
37. While we provide some flexibility
in the testing parameters an applicant
will use, the Commission will include
in its evaluation of the discontinuance
application whether the testing
conditions used were appropriate to
measure performance. Thus, in addition
to testing results, the Commission will
consider the testing parameters as a
factor in determining whether it needs
to remove the application from
streamlined processing. If the testing
parameters raise sufficient concerns
such that the Commission removes the
application from streamlined
processing, the Commission will then
consider those testing parameters in any
totality of the circumstances analysis of
the adequacy of the replacement
network.
38. Small Business Exemption from
the Network Performance Testing
Requirements. We emphasize that no
carrier must conduct testing or
otherwise meet the criteria we adopt
today. Compliance with these criteria
merely enables potential automatic
grant of a discontinuance application.
The adequate replacement factor is
merely one part of a multifactor
balancing test, and the benchmarks
associated with the criteria provide
guidance to carriers and a path toward
automatic grant of their technology
transitions discontinuance applications.
We also reemphasize that once a carrier
completes testing of a next-generation
service and successfully obtains
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automatic grant, it need not conduct
testing again if it files an application
involving a substantially similar
replacement service.
39. However, we provide smaller
carriers more flexibility in how they
demonstrate network performance
under this prong of the three-pronged
test. We do not extend this exemption
to any other components of the adequate
replacement test we adopt today,
including both of the other aspects of
the network infrastructure prong
(service quality and network coverage)
or the other two prongs of the test. We
conclude that carriers with 100,000 or
fewer subscriber lines, aggregated across
all affiliates, may remain eligible for
automatic grant without compliance
with the specific testing requirements of
the network performance criterion we
articulate today. This exemption from
complying with the specific testing
parameters announced herein does not
apply to any rate-of-return carrier that is
affiliated with a price cap carrier. We
encourage them, however, to share with
the Commission whatever information
they deem probative of their network
performance.
40. Service Availability. In order to
meet this aspect of the network
performance prong and be eligible for
automatic grant, an applicant must
demonstrate service availability of 99.99
percent. The test we adopt today
consists of a standard formula
traditionally used by industry to
measure telephone service availability
for which we have defined the variables
to ensure that all discontinuing carriers
are measuring the same information.
The replacement service’s availability
will be calculated using data regarding
customer trouble reports, the average
repair interval in responding to those
reports, the number of lines in the
service area, and the duration of the
observation period to reach a
representative measurement of a ‘‘four
9s’’ benchmark used to measure service
availability. We conclude these
variables will provide the best measure
of customers’ ability to access their
provider’s network.
41. The ITU defines ‘‘reliability’’ as
‘‘[t]he probability that an item can
perform a required function under
stated conditions for a given time
interval.’’ It defines ‘‘availability’’ as
‘‘[a]vailability of an item to be in a state
to perform a required function at a given
instant of time or at any instant of time
within a given time interval, assuming
that the external resources, if required,
are provided.’’
42. We conclude that a 99.99 percent
service availability standard, calculated
according to the formula and parameters
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62637
established herein, is a reasonable
approach to ensure that a replacement
service presumptively provides
substantially similar service as the
service being discontinued. We find that
a so-called ‘‘five 9s’’ (i.e., 99.999 percent
availability) standard, which would
allow a subscriber’s service to have, on
average, approximately 5 minutes and
15 seconds of downtime per year, is too
high a threshold. It would impose a
higher standard than currently applies
to TDM-based service. We also find that
a 98 percent availability standard,
which would allow, on average,
approximately 7 days, 7 hours, and 12
minutes of downtime per year, is too
low a benchmark for an applicant to be
eligible for automatic grant, because it
would allow more downtime than
consumers should reasonably expect.
(This conclusion does not prejudge how
we might view such an application in
the context of a holistic review.) The
difference between a 99.999 percent and
a 98 percent reliability standard—less
than 2 percent—translates to more than
seven additional days’ worth of service
downtime per year, an amount that we
judge would be quite meaningful to
consumers. We conclude that if a
replacement service faces that much
service downtime, the section 214
application should not eligible for
automatic grant.
43. For carriers to demonstrate
satisfaction of the 99.99 percent
standard, we establish the following
formula: Availability = 1¥[(Number of
Customer Trouble Reports) × (Average
Repair Interval)/(Number of Lines
(prorated)) × (Observation Period
Duration)]. For the purpose of this
calculation, the following definitions
apply:
• A ‘‘customer trouble report’’ is any
report regarding trouble with service
made by a customer to a carrier’s service
department in which the customer
reports either: (1) A total loss of
connectivity, or (2) an inability to make
and/or receive any voice calls using the
carrier’s voice replacement service
while other services provided over the
customer’s connection may continue to
function. The number of customer
trouble reports must be tallied over all
lines that are serving customers in the
replacement network in the affected
service area at any time during a
contiguous 30-day observation period.
• A ‘‘repair interval’’ is the elapsed
time, as on a running clock, from when
a customer reports a trouble to the
carrier’s service department until the
carrier’s repair of the trouble is
complete and the customer’s service is
restored. If a customer reports trouble
with service during the 30-day
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observation period that is not resolved
by the end of the 30-day observation
period, the length of the repair interval
runs from the time the trouble with
service is reported to the end of the
observation period. The elapsed time
may be recorded in measurement units
of the applicant’s choosing, as precisely
as the applicant chooses. When
rounding is required, however, elapsed
time must always be rounded up to the
next higher measurement unit. The
‘‘average repair interval’’ is then
calculated by summing the lengths of all
repair intervals, over all lines that are
serving customers in the replacement
network, and dividing that sum by the
number of customer trouble reports in
the 30-day observation period.
• ‘‘Number of lines (prorated)’’ is the
number of replacement network lines
being served by the provider during the
30-day observation period. For the
purpose of this calculation, lines served
for part of the observation period should
be pro-rated. A line that is in service for
the entire duration of the observation
period is counted as 1 line. When
required, round fractional lines to the
nearest hundredth of a line.
• The ‘‘observation period duration’’
should be expressed in the same units
as the average repair interval.
44. In reporting the results of the
availability calculation to the
Commission as part of an application
seeking streamlined treatment for a
technology transition discontinuance,
the applicant must report: (1) The
number of customer trouble reports; (2)
the average repair interval; (3) the
number of lines (prorated); and (4) the
calculated availability.
45. Congestion-Based Voice Call
Failure. Certain non-packet wireless
access technologies providing fixed
services can experience the failure of
voice calls because of network
congestion. To address this potential
issue, we establish a metric that applies
solely to these technologies for
determining the frequency of
congestion-based voice call failure,
meaning the probability that a customer
trying to make a call will be unable to
do so due to network congestion. We
conclude that probability must be less
than one percent during each daily peak
busy hour, for at least 95 percent of the
30 days in the measurement period, to
serve as an adequate replacement for a
legacy voice service.
46. To calculate this benchmark for
purposes of remaining eligible for
automatic grant, the provider must
calculate the probability of congestionbased voice call failure for every hour.
For each of the 30 days measured, the
provider must then determine the hour
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that had the highest probability of
congestion-based voice call failure that
day. The probability of congestion-based
voice call failure each hour should be
determined by dividing the number of
failed calls during the hour by the total
number of call attempts during the hour.
For 95 percent of the total days, the
failure probability during the hour with
the highest failure probability must be
less than one percent, i.e., for at least 95
percent of the total days, less than one
percent of all calls may be blocked in
the worst hour due to unavailability of
a radio access channel. These
measurements would not be taken on a
sample basis, but would be collected at
each cell tower over all call attempts to
or from customers for a 30-day period.
In addition, if there are seasonal
differences in traffic load—for example,
if the area is a summer resort
community—measurements to
determine probability of call failure
must be taken during the busy season.
47. Network Coverage. In order to
meet this aspect of the network
performance prong and be eligible for
automatic grant, the applicant must
demonstrate that either: (i) A single
replacement service reaches the entire
geographic footprint of the service area
subject to discontinuance; or (ii) there
are multiple providers who collectively
cover the entirety of the affected service
area.
48. If the applicant is relying on a
single replacement service, whether its
own or that of a third party, eligibility
for automatic grant will depend on
whether it demonstrates that the
replacement service reaches the entire
geographic footprint of the area served
by the legacy voice service. However, in
service areas where the applicant relies
on multiple providers’ services, the
applicant must demonstrate that other
providers cumulatively reach all
customers in the affected coverage area.
In order to be eligible for automatic
grant, the application must: (i) Describe
with sufficient particularity the
geographic scope of the replacement
service(s) available from the other
provider(s), or (ii) otherwise
demonstrate that each of these services
satisfies the criteria we adopt today. We
decline to adopt a de minimis threshold
for judging whether a replacement
service offers the same coverage. We do
not see a basis for drawing such a line.
49. Access to Critical Applications
and Functionalities. Under this prong,
to remain eligible for automatic grant for
a technology transition discontinuance
application, an applicant must certify or
show that at least one replacement
service complies with regulations
regarding availability and functionality
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of 911 service for consumers and public
safety answering points (PSAPs),
industry standards regarding
communications security, and
regulations governing compatibility
with assistive technologies.
50. 911 and Emergency Services. To
satisfy the second prong of the adequate
replacement test and remain eligible for
automatic grant, applicants must certify
or show compliance with: (i) 911
accessibility and location accuracy
requirements; (ii) reliability and
continuity of 911 service requirements
with respect to backup power; and (iii)
any other applicable emergency service
requirements. The basic 911 service
requirement is the transmission of
wireless 911 calls to the PSAP (or
designated default answering point or
appropriate local emergency authority)
without respect to their call validation
process, and without reference to
location accuracy.
51. 911 Accessibility and Location
Accuracy Requirements. The applicant
must demonstrate that the replacement
service complies with applicable
regulations regarding the availability
and required functionality of 911
service. Those regulations include the
rules governing: (i) 911 call delivery,
service, and location; (ii) the capabilities
and routing necessary for consumers’
continued access to 911 emergency
service; and (iii) 911 calls to PSAPs or
other appropriate local emergency
authorities.
52. In order to satisfy this prong of the
adequate replacement test and thus
remain eligible for automatic grant, the
replacement service must offer a
dispatchable address capability.
Traditional landline service generally
guarantees the provision of Master
Street Address Guide (MSAG)-validated
address information to ensure proper
call routing, location determination, and
dispatch of emergency responders.
Provision of other types of location
information, such as wireless 911 ALI
coordinates, would not ensure that the
service provides an adequate
replacement for a legacy voice service.
If the rules applicable to the
replacement service require provision of
an MSAG-validated address, the
applicant may meet this requirement by
certifying that its replacement service
meets the 911 registered location
requirements applicable to that service.
However, if the 911 requirements for the
replacement service do not require
provision of a validated address, the
applicant must further certify that it will
register a validated dispatchable address
for each subscriber and provide the
address to the appropriate PSAP for all
911 calls. A dispatchable address is an
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address that includes street name,
building number, and any other
information critical to dispatching
emergency responders to the correct
location and one that meets public
safety requirements for inclusion in and
verification by Automatic Location
Information databases and PSAP Master
Street Address Guides or their
functional equivalents. If the applicant
is relying on a third party service, it
must make an appropriate showing that
the third party service provide meets
this requirement. As applicable,
alternative service providers must also
be compliant with other Commission
rules for 911 call delivery, service, and
location in order for the applicant to
retain eligibility for streamlined
processing. For the applicant to retain
eligibility for automatic grant, those
alternative service providers must also
comply with any new dispatchable
address/location requirements, as
applicable, that the Commission may
adopt in the future. Consistent with the
Commission rules regarding
discontinuing service to completely exit
an industry, the applicant seeking
streamlined processing is required to
provide the same advance notice to all
PSAPs in its service area, and inform
the Commission that it has done so. 47
CFR 63.71. These requirements also
include notifying all affected customers,
the applicable state agencies, and
federally recognized Tribal Nations.
53. Backup Power. To ensure that
consumers continue to receive the
benefit of continued access to 911,
applicants seeking to discontinue a
legacy line-powered service in favor of
a newer service that lacks line-powering
must certify or make a showing that at
least one replacement service in the area
complies with our residential backup
power requirements. Alternatively, an
applicant may show that another
provider in the affected area offers linepowering or complies with section 12.5.
Section 12.5 applies to providers of
Covered Services, which are defined as
‘‘any facilities-based, fixed voice service
offered as residential service, including
fixed applications of wireless service,
offered as a residential service that is
not line powered.’’ Section 12.5 requires
providers to offer subscribers the option
to purchase backup power for the
Covered Service, with a minimum of
eight hours of standby backup power.
By February 13, 2019, such providers
must also offer at least one option that
provides a minimum of twenty-four
hours of standby backup power.
Providers must also notify consumers of
the following: (1) Availability of backup
power sources; (2) service limitations
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with and without backup power during
a power outage; (3) purchase and
replacement options; (4) expected
backup power duration; (5) proper usage
and storage conditions for the backup
power source; (6) consumer backup
power self-testing and monitoring
instructions; and (7) backup power
warranty details, if any. We are not
adding to the Rule 12.5 requirements,
but ensuring that a service provider’s
compliance with those requirements is
a key consideration in whether that
service represents an adequate
replacement for a legacy line-powered
service.
54. In order to ensure that consumers
are aware of technology transitions with
sufficient time to take action, we also
require applicants to provide to
consumers the initial notice containing
the information elements of section
12.5, pursuant to section 63.71. Section
63.71(b) states that a carrier shall file its
214 application ‘‘on or after the date on
which notice has been given to all
affected customers.’’ Section 63.71(d)
provides that applications shall be
automatically granted on the 31st day
after filing an application for nondominant carriers and the 60th day for
dominant carriers, unless the
Commission notifies the applicant that
the grant will not be automatically
effective. 47 CFR 63.71(d).
Consequently, we expect that
consumers will receive the initial
backup power notice before the earliest
possible date for grant of a section 214
discontinuance application—at least 30
days before the change occurs. Although
section 12.5 requires disclosures be
made at the point of sale, we anticipate
that, in the context of the section 214
discontinuance process, it will not be
the individual sale of a non-line
powered service to a consumer that will
trigger the need for notification of the
backup power requirements of section
12.5, but rather the transition to a newer
technology that may have different
backup power capabilities. The
underlying principle remains the same:
Prior to initiation of a new service
(whether at the point of sale or at the
time of a technology transition),
consumers should have the benefit of
understanding how to ensure continuity
of 911 service through backup power.
We continue to require annual
disclosures to be made as described in
section 12.5, by any means reasonably
calculated to reach the individual
consumer.
55. We are not adding to the existing
backup power requirements. In order for
a service to qualify as an adequate
replacement, it must abide by our
existing backup power rules so that
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62639
consumers receive information on
backup power in advance of being
transitioned to a replacement service
that lacks line-power. Otherwise, the
consumer could become aware of the
limitations of the replacement service
only when his or her 911 call does not
go through during a commercial power
outage.
56. Protecting PSAP Operations. To
successfully meet this second prong, an
applicant must certify or show that at
least one replacement service complies
with 911 network reliability
requirements. This requirement will
help ensure that the transition to the
replacement service neither impairs the
continuity of 911 service to PSAPs, nor
disrupts the configurations and
connectivity necessary for their 911
operations. This certification or showing
imposes no new requirements and will
not affect our policy work in other
Commission proceedings.
57. Communications Security. To
satisfy the second prong of the adequate
replacement test and remain eligible for
automatic grant, an applicant must
certify or show that the replacement
service offers comparably effective
protection from network security risks.
Satisfaction of this criterion is part of
the adequate replacement test required
for streamlined processing, and is not
mandatory to discontinue service
generally. This approach allows an
applicant relying on a third party
service to satisfy the adequate
replacement test without requiring
direct knowledge of that third party’s
security posture.
58. Our overarching objective is to
preserve the availability, integrity, and
confidentiality (AIC) of the network.
Availability refers to the accessibility
and usability of a network upon
demand. Integrity refers to the
protection against the unauthorized
modification or destruction of
information. Confidentiality refers to the
protection of data from unauthorized
access and disclosure, both while at rest
and in transit. In making the
certification or showing necessary to
demonstrate comparably effective
protection from network security risks,
the applicant must evaluate: (i) Relevant
cybersecurity standards and practices—
whether industry-recognized or related
to some other identifiable approach—
the replacement service employs at the
time of certification (e.g., a replacement
service could employ the National
Institute of Standards and Technology
(NIST) Framework for Improving
Critical Infrastructure Cybersecurity
(NIST Framework) as a management
tool to inform decisions about cyber risk
analysis and organize mitigation activity
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and CSRIC IV provides guidance to the
Commission on communications market
sector implementation of the NIST
Framework); (ii) what plans (if any) the
replacement service has to incorporate
cybersecurity threat information sharing
as a part of the replacement service’s
security operations; and (iii) roles and
responsibilities for the replacement
service’s cybersecurity, both with
respect to the provider but also any
third parties (e.g., the applicant’s
vendors or contractors), to promote
effective accountability for privacy and
security.
59. If relying on its own service, the
applicant must demonstrate that the
replacement service offers comparably
effective protection from network
security risks to remain eligible for
automatic grant. That demonstration can
be made in one of two ways. If the
applicant’s network security
management practices are enterprisewide, i.e., the enterprise safeguards AIC
without differentiation between
services, geographic areas, or serviceproviding affiliates, a certification to
that effect will be sufficient to
demonstrate that the replacement
service offers comparably effective
protection from network security risks.
60. Alternatively, the applicant must
show that: (i) It has evaluated any
known risks and vulnerabilities of the
replacement service; (ii) it has taken
measures to address and mitigate the
enumerated risks and vulnerabilities;
(iii) it will inform consumers as part of
the discontinuance notice required
pursuant to section 63.71 what security
measure(s) the consumers should take
`
vis-a-vis the replacement service (e.g.,
downloading and maintaining up-todate anti-virus software) and other steps
consumers may take to ensure safe use
of the replacement service; and (iv) it
will undertake best efforts to identify
any vulnerable facilities (e.g., fire, EMS,
law enforcement and other critical
infrastructure facilities) and users, and
work to address and mitigate the
enumerated risks and vulnerabilities
(e.g., the use of diverse IP paths for
critical infrastructure). Where an
applicant provides written guidance or
Public Service Announcements to
individuals or organizations in
accordance with (iii) and (iv) above, the
applicant should provide a generic copy
of such guidance to the Commission.
This certification is not a directive on
how to address network security.
Applicants retain flexibility regarding
how to address such risks.
61. We recognize the challenges for an
applicant to gain access to a third party
service’s cyber risk management process
would be particularly acute. Therefore,
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an applicant relying on a third party
service instead must exercise reasonable
diligence to identify the security profile
of the technology of the replacement
service, based on the replacement
technology’s ability to provide
availability, integrity, and
confidentiality. Focusing on the
established key considerations of
confidentiality, integrity, and
availability provides a frame of
reference for identifying the risks
associated with the replacement
technology. We note that a security
profile is not intended to identify any
specific cyber risk management process
or specific vulnerabilities associated
with a particular third party’s
replacement service, but instead serves
to identify the general cyber risks, from
a consumer’s perspective, associated
with the replacement service’s
technology. This is a particularly
effective solution for applicants relying
on third party services because a
security profile may be gleaned from
open source information and does not
require specific knowledge of the
inherent security of the replacement
service. While a security profile can be
identified using publicly available
information, it should be arrived at after
the applicant undertakes an analysis
centered on the availability, integrity,
and confidentiality model described
above under the certification approach.
In this regard, the security profile can
adjust to new threats and vectors as they
emerge.
62. We seek to ensure that an
applicant has established a sound basis
for its representations about the
comparable effectiveness of the
protections from network security risks
employed by a third-party replacement
service, by exercising a reasonable
degree of diligence in making those
representations in light of all the facts
and circumstances.
63. No carrier is required to comply
with any specific network security
standards. We do not dictate what
measures a company must take, nor do
we require that they submit potentially
sensitive information to the Commission
as part of their section 214 application.
Rather, meeting this criterion is only
necessary to satisfy the adequate
replacement test, and that in turn is
only required if they wish to remain
eligible for automatic grant. Beyond
that, the Commission has always
recognized the importance of network
security and agrees with commenters
that it is a crucial consideration in
determining whether an adequate
replacement service exists.
Transitioning from legacy-based
services to new technologies presents
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new network vulnerability issues that
did not exist with legacy technologies.
We conclude the flexible,
individualized approach we take to
network security addresses concerns
that applying a rigid standard would be
counter-productive. Additionally, while
we recognize that there is no universal
cybersecurity standard to apply, we
believe that there are generally accepted
guidelines and best practices that
carriers should consider when
evaluating their own cybersecurity
posture or the security profile of the
replacement technology.
64. Services for Individuals with
Disabilities. Under the critical
applications prong, applicants will
certify that at least one replacement
service complies with the Commission’s
existing applicable accessibility,
usability, and compatibility
requirements governing services
benefiting individuals with disabilities
as a means to ensure that the
replacement service offers accessibility
levels at least as effective as those
offered by the legacy voice service.
65. The Commission’s rules regarding
telecommunications-related
accessibility requirements govern
standards for accessibility, usability,
and compatibility for: (i)
Telecommunications services and
functionalities; (ii) voicemail and
interactive menu functionalities; and
(iii) advanced communications services
(ACS), defined by statute to include
both interconnected and noninterconnected VoIP service. The rules
obligate service providers to ensure that
a service is accessible to and usable by
individuals with disabilities ‘‘if readily
achievable’’ for services subject to part
6 or 7 of the rules, and ‘‘unless not
achievable’’ for services subject to part
14 of the rules. To remain eligible for
streamlined processing, an applicant
must demonstrate that any public
mobile service proposed as an adequate
replacement complies with sections
14.60 and 14.61 of the rules. When a
standard of accessibility or usability is
not achievable, service providers are
required to ensure the relevant service,
functionality, or application is
compatible with existing peripheral
devices or specialized customer
premises equipment commonly used by
individuals with disabilities. To remain
eligible for automatic grant, providers
also must comply with rules regarding:
(i) Product design, development and
evaluation; (ii) accessible information
pass through; and (iii) customer access
to information, documentation, and
training.
66. In order to meet this factor under
the critical applications prong, any new
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service must provide levels of
accessibility, usability, and
compatibility as effective as the legacy
voice service to be deemed an adequate
replacement utilizing a new technology.
We also expect that, due to reduced
costs and heightened capabilities of
next-generation services, more
accessibility features and functionalities
will be achievable within the meaning
of our rules. Thus, we encourage
carriers to proffer replacement services
that have the potential to provide new
accessibility features and functionalities
and to make newly achievable features
and functionalities available to their
customers with disabilities.
67. We also remind carriers and
interconnected VoIP service providers
of their obligation under the existing
telecommunications relay service rules
to provide access to TRS, including 711
dialing access. The proposed
replacement service or the alternative
services available from other providers
must provide such access, where
required under the Commission’s rules.
68. To the extent persons with
disabilities need to transition to new
equipment in order to maintain the
same functionality or make use of
improved functionality such as
described above, we encourage service
providers to make that transition as
simple and inexpensive as possible,
particularly for those who do not qualify
for existing state and federal equipment
distribution programs, and for those
who are replacing devices not covered
by equipment distribution programs.
Interfaces between the network and user
equipment and applications should
facilitate interconnection of low-cost
devices and software applications that
provide accessibility.
69. We decline to impose an
independent requirement with respect
to real-time text (RTT) technology in
this proceeding, but note that any
requirements adopted in the Real-Time
Text Notice of Proposed Rulemaking
(RTT NPRM) docket would become part
of our analysis under this factor. The
RTT NPRM (2016 WL 1752915; 81 FR
33170–01, May 25, 2016) proposed rules
defining the obligations of wireless
service providers and equipment
manufacturers to support RTT over IPbased wireless voice services, and
establishing technical standards for
minimum required functionalities, the
support providers must offer for those
functionalities, and timelines for
implementation of this transition. The
RTT NPRM further sought comment on
whether to amend the Commission’s
rules to place comparable
responsibilities to support RTT on
providers and manufacturers of wireline
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IP services and equipment that enable
consumers to initiate and receive
communications by voice. Applicants
would be required to adhere to whatever
applicable RTT implementation
obligations and timetables are
established by any final rules adopted in
the RTT NPRM proceeding.
70. Interoperability with Key
Applications and Functionalities.
Consistent with the FNPRM, 80 FR
57768–01, we define applications as
offerings that run on TDM-based
service, such as home alarm systems
and modems, whereas functionalities
are offerings included in the service,
such as call-waiting and operator
services. At the same time, we make
clear that carriers are not required to
provide access to these capabilities in
perpetuity.
71. Identifying Key Applications.
Widely adopted low-speed modem
devices—in particular, fax machines,
home security alarms, medical
monitoring devices, analog-only caption
telephone sets, and point-of-sale
terminals—make up the initial list of
key applications for which applicants
seeking automatic grant must
demonstrate that any replacement
service offers interoperability. We will
expect replacement services to offer
compatibility with these devices until
2025, to provide time for the
marketplace to migrate to new services
and applications that will provide
similar functions. Because the specific
streamlining criteria we adopt are
limited to ensuring adequate
replacements for legacy voice services,
it is not appropriate to adopt a lowlatency option requirement. Non-voice
services to which section 214(a)
discontinuance obligations apply and
voice services subject to section 214(a)
being discontinued in non-technology
transitions circumstances will continue
to be subject to our pre-existing
discontinuance process, which provides
the public an opportunity to comment
and to which our traditional five-factor
balancing test applies.
72. Because the list we adopt today
may not be fully inclusive of all
applications and functionalities that are
significantly valued by stakeholders, we
also adopt a process to supplement this
list. We direct the Office of Engineering
and Technology, working in
consultation with the Wireline
Competition Bureau and the Wireless
Telecommunications Bureau (together,
the Bureaus), and subject to the
guidelines below, to seek comment and,
based on the record developed, propose
additions to the list of key applications
and functionalities adopted above for
Commission review and approval.
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Within three months of the effective
date of the order, the Bureaus will
release a public notice inviting
consumers and industry stakeholders to
indicate whether additional
functionalities and applications should
be added to the list. The Bureaus will
also engage in outreach to solicit input
from consumer and industry groups.
73. Relevant considerations in
determining whether an application or
functionality retains value to consumers
in the marketplace such that it should
be made interoperable with any
replacement include whether: (i)
Customers rely on the application or
functionality for health or safety
reasons; (ii) the application or
functionality is used as a wholesale
input by other providers; (iii) the
application or functionality relies on
vendor equipment or inputs that have
been discontinued; and (iv) the service
provider, as opposed to the end-user
customer, is the least-cost avoider. In
this context, either the applicant or
certain types of end users face costs to
maintain compatibility with certain
applications in the event of
technological change in the applicant’s
provision of telecommunications
services. The least cost avoider is
whichever of these two parties faces the
least costs of adapting to the
technological change. Thus, the
applicant would be the least cost
avoider if the cost of making
adjustments to its upgraded service
would allow existing applications to
continue to operate were much lower
than the aggregate costs to end users of
updating their applications.
74. The first ‘‘health and safety’’ factor
will determine whether consumers are
using or ordering an application or
functionality based on a TDM service
and their relative significance in those
consumers’ lives. We identified medical
monitoring devices and home security
alarms as the type of health and safety
applications that remain key in the
marketplace. The second factor focuses
on the consumers who subscribe to an
application or functionality from a
provider who relies on the TDM-based
service being discontinued. The third
factor focuses on whether an application
or functionality is outdated or operating
on equipment that is obsolete. The
fourth and final factor will look at
whether the applicant or the end-user
customer is able to address the
interoperability concerns at the least
cost.
75. We recognize that interoperability
considerations will likely change over
time. For that reason, we also conclude
it important to review regularly the list
of key applications to determine
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whether elements of that list no longer
are key. We direct staff to examine this
list as part of each internal biennial
review of agency regulations. We also
direct the Bureaus to propose changes or
updates to the Commission, in
particular to remove any applications or
functionalities that may become
obsolete. The Bureaus will continue
their biennial review of the key
applications and functionalities list and
certification requirements through the
year 2025, at the end of which the
Bureaus will advise the Commission
whether the list remains necessary given
the status of technology transitions.
76. Satisfying the Interoperability
Standard for Key Applications. To
maintain eligibility for potential
automatic grant status, covered
applicants must certify or show that a
replacement service offers
interoperability and compatibility of the
replacement service with the list of key
applications and functionalities.
Conversely, applicants will not be
required to demonstrate interoperability
with applications and functionalities
that are not on the list adopted today or
as modified in the future.
77. When seeking a section 214
discontinuance, applicants should only
certify compliance with this prong if the
replacement service allows the key
application to function or perform in a
substantially similar manner as it did on
the legacy voice service. Demonstrating
applications’ adherence to established
technical standards would be influential
in demonstrating achievement of the
compliance criteria discussed above.
Although we decline to adopt any
specific standards, such as the as the
ITU T.38 standard, or the Managed
Facilities-Based Voice Network (MFVN)
standards, adherence to these standards
would be persuasive evidence of
compliance with this prong should the
underlying certification be challenged.
We also note that 64-kbps encoding in
accordance with ITU G.711 standard
would allow a replacement service,
such as a wireless replacement, to carry
any signal that a customer can use today
with a legacy TDM service. Lower bit
rate signals cannot carry all the
information carried in a 64-kbps signal
and therefore 64-kbps encoding in
accordance with ITU G.711 would
support applications such as fax, credit
card transactions, and medical
monitoring. This would also be
persuasive evidence of compliance. The
Commission also supports any further
industry testing efforts.
78. The approach we announce today
will sunset in 2025, at which point the
interoperability requirement will no
longer be part of our section 214
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analysis. By that time, consumers will
have had ample time to transition to
newer functionalities and applications.
Until then, of course, parties are always
free to request changes by petition or
submissions in the biennial review
process.
79. Other Issues Regarding the
Adequate Replacement Test. We also
sought comment on whether to include:
(i) A partial or full exemption from the
adequate replacement test for rural
LECs, and (ii) affordability as a separate
criteria under the test.
80. No Rural LEC Exemption. We
decline to provide any rural LEC
exemption because rural LECs have
offered no compelling justification as to
why these criteria would not be just as
beneficial to their customers as they
would be to the customers of other 214
discontinuance applicants in
demonstrating the adequacy of
replacement services. However, we are
exempting small businesses, including
rural LECs that satisfy the standard for
this designation, from the network
testing requirements we adopt today to
remain eligible for automatic grant.
81. We emphasize that the
Commission is committed to supporting
quick and efficient transitions to IP in
rural areas, and we do not burden rural
LECs uniquely or excessively.
Nevertheless, we find that rural
consumers, with often limited choice in
service providers, should equally
benefit from full consideration of the
adequacy of any replacement service to
ensure continued network performance
and service quality, as well as access to
critical applications, and
interoperability with valued services.
82. Affordability. The evaluation of
how potential price increases for
alternative services could impact
consumers is a critical part of the
traditional five-factor test for evaluating
discontinuance applications. When
applying the traditional five-factor test
to determine whether a discontinuance
would adversely affect the public
convenience and necessity, the
Commission can fully evaluate issues
involving price and assess the needs of
consumers who may only have access to
a more expensive replacement service as
part of a technology transition. We
appreciate commenters’ suggestions on
possible ways to evaluate price
increases in the context of the
technology transitions. When called
upon to apply this standard in the
context of technology transitions, the
Commission’s focus will be on the price
to consumers before and after a
discontinuance resulting from transition
to a newer technology. Numerous
carriers have touted the reduced costs
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and improved capabilities of their nextgeneration services and networks, and
we anticipate that we will see those
benefits accrue to consumers.
83. We nonetheless acknowledge the
concerns expressed in the record about
the potential for increased prices to
customers for replacement services due
to technology transitions, and
emphasize that the Commission is
committed to ensuring that technology
transitions do not unduly impact our
most vulnerable citizens. A coalition of
public interest and civil rights groups
urges that we require applicants to
conduct an impact assessment of the
discontinuance on low-income people
and people of color. We decline to
mandate such an impact analysis
requirement as part of our framework
for streamlined processing because we
consider it unduly burdensome on
applicants. Congress expressed its intent
in the Act to make available
communications service to ‘‘all the
people of the United States,’’ and more
recently, in the Telecommunications
Act of 1996, Congress asserted the
principle that rates should be
‘‘affordable,’’ and that access should be
provided to low-income consumers in
all regions of the nation. More broadly,
we are taking actions to promote
affordability of next-generation services
in a variety of proceedings. We recently
modernized our Lifeline program by
taking a variety of actions that work
together to encourage more Lifeline
providers to deliver supported
broadband services as we transition
from primarily supporting voice
services to targeting support at modern
broadband services. In approving
Charter’s acquisition of Time Warner
Cable and Bright House, the
Commission imposed a condition
requiring the combined company to
make available a discounted broadband
service for low-income consumers. In
the order approving the AT&T/DIRECTV
transaction, the Commission required as
a condition of this transaction that the
combined company make available an
affordable, low-price standalone
broadband service to low-income
consumers in the combined AT&T/
DIRECTV wireline footprint. Altice and
Cablevision also committed to providing
a low-income broadband package to all
eligible customers in Cablevision’s
footprint within fifteen months after
closing. Under the Commission’s rules,
recipients of high-cost universal service
support are required to offer voice and
broadband services at rates that are
reasonably comparable to offerings of
comparable services in urban areas.
Consistent with these statutory
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objectives, affordability has always
been—and will continue to be—a
critical component of the Commission’s
determination as to whether a particular
discontinuance request is consistent the
Commission’s obligation to ensure the
public interest is protected.
84. Nothing we adopt today limits
that obligation. While we do not include
affordability as a separate criterion
under the adequate replacement test we
adopt today, affordability remains a
critical part of the Commission’s
underlying evaluation of discontinuance
requests. Therefore, the cost of
replacement services will be considered
both before issuing the Public Notice
and during the comment period. Bureau
staff review applications for
completeness, accuracy, and fulfillment
of all predicate requirements, including
providing notice to affected customers,
before issuing the Public Notice. In
order to be considered for streamlined
processing, applicants must include
information about the price of
replacement services compared to the
legacy service in their application. The
Bureau will not place an application on
streamlined processing if there is a
material increase in price for the
replacement service compared to the
service to be discontinued. Moreover,
consumers affected by potential
discontinuances and their advocates
will continue to have the opportunity to
offer comments and objections in the
streamlined process. Should we receive
evidence of material price increases for
comparable services, particularly those
with a disproportionate impact on
vulnerable populations, we would
remove that application from
consideration for automatic grant.
85. Certain commenters also contend
that the adequate replacement test
should include a requirement that the
discontinuance will not result in the
loss of Lifeline service. We emphasize
that the test we announce today does
not change or disturb in any way the
eligible telecommunications carrier
(ETC) obligations of any incumbent
carrier to offer Lifeline service. In the
recent Lifeline Reform Order, the
Commission concluded that if an
incumbent LEC is the only Lifeline
provider in a given census block, it
retains the ETC obligation to offer voice
service. That requirement exists
independent of the section 214
discontinuance process. Thus, if there is
no other Lifeline provider in the
community for which discontinuance is
sought, the incumbent LEC cannot
terminate voice service to Lifeline
subscribers, and it must continue to
offer Lifeline voice service to any
qualifying Lifeline household.
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86. Other Issues Related to the
Discontinuance Process. Consumer
Education. Discontinuance of an
existing service on which customers
rely creates a need for customer
education. To help ensure seamless
transitions, we conclude that an
applicant must offer adequate customer
education materials and outreach plans
when discontinuing a service as part of
a technology transition. We wish to
establish guidelines, not impose an
unduly rigid mandate that forecloses
flexibility. Nonetheless, those
guidelines need to be clear enough to
allow applicants to understand how to
achieve compliance. To be clear, this
consumer education requirement
applies to the same universe of
discontinuance applications as the new
adequate replacement test, and the
procedures governing all other
discontinuance applications are
undisturbed.
87. An adequate customer outreach
plan must, at a minimum, involve: (i)
The development and dissemination of
educational materials provided to all
customers affected containing specific
information pertinent to the transition,
as specified in detail below; (ii) the
creation of a telephone hotline and the
option to create an additional
interactive and accessible service to
answer questions regarding the
transition; and (iii) appropriate training
of staff to field and answer consumer
questions about the transition. All
aspects of the consumer outreach plan,
including the educational materials, the
telephone hotline, and a carrier’s
contact information must be provided in
accessible and usable formats. To ensure
that customers understand the notice
that they receive, any applicant who in
the ordinary course of business
regularly uses a language other than
English in its communications with
customers must provide the education
materials to customers in both English
and that regularly used language. The
Commission will consider a carrier’s
certification of its compliance with
these requirements as part of its overall
analysis of whether granting the
application would be in the public
interest.
88. Similar to the DTV transition
outreach requirements, the required
educational materials to customers may
be provided as a ‘‘bill stuffer,’’ an
information section on the bill itself, or
as a discrete communication sent in the
manner most commonly used to
communicate with the customer. We
recognize that certain customers do not
receive a monthly bill (e.g., those using
auto-payment plans), and thus provide
a separate option. As billing practices
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change over time, the way in which
customers receive educational materials
is subject to change as well. The
materials must be delivered in
accessible and usable formats and
include, at minimum: (i) A general
description of the changes to the
service, written in a non-technical
manner that can be readily understood
by the average consumer; (ii) the impact
on existing applications and
functionalities that are liked to be
purchased by individual customers,
including whether such applications,
and functionalities will be available
following the transition; (iii) any change
in the price of the service and impact on
applications and functionalities which
run on the service to be discontinued;
and (iv) points of contact who will
address technology transitions issues, as
much as is practicable. We recognize
that third parties unrelated to the
applicant provide many applications
that run on the service. We would
encourage third parties to cooperate
with these consumer education efforts,
but acknowledge that access to third
party information may not be possible.
If the applicant is relying on a third
party service, we will further require the
applicant to provide: (i) Contact
information for that third party and (ii)
upon inquiry from a consumer,
information regarding the
interoperability and compatibility of
applications benefiting individuals with
disabilities that run on the applicant
legacy voice service.
89. We also encourage, but do not
require, applicants to submit their
consumer education materials to the
relevant state commission(s) and/or
Tribal government. We emphasize that
there is an important role for state
commissions and Tribal governments in
promoting consumer education around
the discontinuance of legacy voice
services. As we noted in the Emerging
Wireline Order in the context of copper
retirement, states traditionally have
played a critical role in consumer
protection, and we strongly encourage
carriers seeking to discontinue legacy
voice services to partner with state
public service commissions, Tribal
entities, and other state and local
entities to ensure consumers understand
and are prepared for the transition. We
will not, however, impose a mandate
regarding outreach to state commissions
and Tribal entities, because we believe
it would unduly burden both industry
and state and Tribal entities.
90. The applicant is required to
provide an accessible telephone hotline
staffed at least 12 hours per day,
including between the hours of 9 a.m.
and 5 p.m., to answer questions
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regarding the discontinuance, as some
individuals with disabilities cannot
afford Internet access, or may lack a
reliable means of Internet access in their
area. The applicant also has the option
to additionally provide other interactive
and accessible services (e.g., an online
chat with a customer service
representative) to answer questions
regarding the discontinuance.
91. An applicant must designate staff
trained to assist consumers with
disabilities with the complex disability
access issues related to the transition.
The method for contacting these staff
must be posted on an applicant’s Web
site. To accommodate consumers who
may not be able to access the Internet,
such contact information should be also
publicized via alternate means that are
up to the applicant’s discretion, such as
in the required education materials
included with billing statements,
promotional materials, or publications
disseminated by national consumer
organizations.
92. Email Notice. We revise our rules
to explicitly permit carriers to provide
customers notice of discontinuances via
email where those customers have
previously agreed to receive notice from
the carrier by that method. The
Commission’s rules currently require a
carrier planning to discontinue, impair,
or reduce service as defined under
section 214 of the Act to notify all
affected customers, the governor of the
state affected, that state’s public utility
commission, and the Secretary of
Defense. A copy of the relevant section
214 application also must be submitted
to the public utility commission,
governor, and secretary of defense. In
the FNPRM, 80 FR 57768–01, the
Commission sought comment on
whether to revise these rules to allow
email-based or other forms of electronic
notice of discontinuance to customers,
including whether alternative forms of
notice should be permissible only with
customer consent and, if so, what
methods to obtain consent should be
permissible.
93. The record confirms our belief
that email is the preferred method of
notice for many carriers seeking
discontinuance, as well as for
consumers. We also explicitly permit
carriers to provide notice by any other
alternative method to which the
customer has previously agreed. We
decline, however, to afford carriers the
blanket ability to give notice to
customers in whatever form those
carriers believe is most efficient,
regardless of whether the customer has
agreed to that method. In both instances,
the same provisos adopted in
connection with the recently-adopted
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copper retirement rules shall apply. For
example, notice must be made in a clear
and conspicuous manner; and may not
contradict or be inconsistent with any
other information with which it is
presented. In addition, (a) the
incumbent LEC must have previously
obtained express, verifiable, prior
approval from retail customers to send
notices via email regarding their service
in general, or planned network changes
in particular; (b) an incumbent LEC
must ensure that the subject line of the
message clearly and accurately
identifies the subject matter of the
email; and (c) any email notice returned
to the carrier as undeliverable will not
constitute the provision of notice to the
customer.
94. Notice to Tribal Governments. We
revise our rules to require all carriers to
provide notice of discontinuance
applications to any federally-recognized
Tribal Nations with authority over the
Tribal lands in which the
discontinuance, reduction, or
impairment of service is proposed, in
addition to the notice already required
to state PUCs, state Governors, and the
Department of Defense. This outcome
aligns the notice requirements for
section 214 discontinuance applications
and copper retirement network changes,
imposes the same requirement on all
carriers serving Tribal lands, and places
Tribal governments in all states in a
position to prepare and address any
concerns from consumers in their Tribal
communities.
95. Timing of Notice. Unlike the
Emerging Wireline Order, where the
record on the copper retirement notice
period reflected numerous instances in
which competitors and their customers
suffered actual harm due to the notice
period, commenters in this proceeding
have not offered specific evidence of
actual harm caused by the
discontinuance notice provisions in
section 63.71. We therefore decline to
revise section 63.71 to require advance
notice of a planned discontinuance or to
lengthen the discontinuance process by
changing the existing timeline for filing
objections and/or allowing automatic
grant. We nonetheless recognize that
large-scale technology transition-related
discontinuances have not yet occurred.
Thus, while we do not take action today
to revise section 63.71, we emphasize
that the Commission may revisit this
issue if presented with evidence of such
a need in the future.
96. Non-Substantive Change to Code
of Federal Regulations. Our current
rules require that public notices of
network changes, which include copper
retirement notices, be labeled with one
of a variety of enumerated titles, ‘‘as
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appropriate.’’ In the Emerging Wireline
Order, we adopted a unique set of
network notification requirements
specific to incumbent LEC retirement of
copper facilities. However, none of the
titles enumerated in section 51.329(c)
relate specifically to copper retirement
notices. To alleviate this potential
confusion and to allow the public to
readily differentiate copper retirement
notices from all other types of network
change disclosures, we adopt two new
titles to those already included in
section 51.329(c): ‘‘Public Notice of
Copper Retirement Under Rule 51.332’’
and ‘‘Certification of Public Notice of
Copper Retirement Under Rule 51.332.’’
97. Clarification of Copper Retirement
Notice Rules. Under the recently
adopted revised copper retirement rules,
copper retirement notices to retail
customers must include ‘‘[t]he name
and telephone number of a contact
person who can supply additional
information regarding the planned
changes.’’ Those same notices must also
include ‘‘a toll-free number for a
customer service help line’’ in the
requisite neutral statement of the
services available to the incumbent
LEC’s retail customers. To alleviate
potential confusion regarding whether
an incumbent LEC must include the
name and phone number of a specific
individual in copper retirement notices
in addition to a toll-free number for a
customer service center, we clarify that
copper retirement notices to enterprise
customers must include the name and
address of a contact person who can
provide additional information
regarding the planned change, as
required by section 51.327(a)(2).
Enterprise customers are all business
customers other than those considered
very small. For copper retirement
notices to mass market customers,
however, inclusion of the toll free
number for a customer service help line
required by section 51.332(c)(2)(i)(C)
will be sufficient to satisfy the
requirements of section 51.327(a)(2).
Mass market customers consist of
residential customers and very small
business customers. Very small
businesses typically purchase the same
kinds of services as do residential
customers, and are marketed to, and
provided service and customer care, in
a similar manner.
98. ORDER ON RECONSIDERATION.
In response to a Petition for
Reconsideration filed by TelePacific, we
revise the Commission’s rules to make
a competitive LEC’s application for
discontinuance deemed granted on the
effective date of any copper retirement
that made the discontinuance
unavoidable, so as long as the
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discontinuance application is filed at
least 40 days prior to the retirement
effective date. This will address a gap in
our rules that left competitive LECs
potentially vulnerable to violating our
discontinuance rules for reasons
entirely outside of their control.
99. Background. The Commission
addresses changes in carriers’ facilities
and changes to their services through
separate rules. Changes to a carriers’
facilities are subject to the
Commission’s network change
disclosure rules, which are noticebased. Changes to a carrier’s service,
however, are subject to the
Commission’s service discontinuance
rules, which require Commission
approval. All references to the section
214 discontinuance process encompass
the reduction or impairment of service
under section 214 as well.
100. In the Emerging Wireline Order,
the Commission revised its copper
retirement notice rules to require 180
days’ advance notice to interconnecting
entities and non-residential retail
customers and 90 days’ advance notice
to residential retail customers. Under
the prior rules, a carrier could provide
as little as 90 days’ notice of a planned
copper retirement to interconnecting
telephone exchange service providers,
and it was not required to provide any
notice to retail customers.
101. On November 18, 2015, U.S.
TelePacific Corp. (TelePacific) filed a
Petition for Reconsideration of the
Emerging Wireline Order to address
what it perceives to be a gap between
the Commission’s copper retirement and
discontinuance processes that could
require a competitive LEC to seek
Commission authorization to
discontinue broadband service to its end
user customers when a planned
retirement would cause the loss of
access to copper facilities over which it
provides broadband service.
102. Among other problems,
TelePacific could unavoidably find
itself out of compliance with the
Commission’s rules if the copper
retirement becomes effective and the
incumbent LEC cuts off access to its
copper before the Commission approves
TelePacific’s discontinuance
application.
103. The Commission’s rules require
that a carrier file its section 214
discontinuance application ‘‘on or after
the date on which notice has been given
to all affected customers.’’ The rules
provide for automatic grant of
applications on the 31st day after filing
for non-dominant carriers and the 60th
day after filing for dominant carriers,
unless the Commission removes the
application from streamlined
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processing. The Commission may in its
discretion remove the discontinuance
application from streamlined
processing. Thus, the application could
remain pending at the time the copper
retirement becomes effective. These
potential outcomes, TelePacific
contends, arise from an unintended
defect in the competitive safety net the
Commission created in the Emerging
Wireline Order by the combination of
the 180-day copper retirement notice
period and the interim reasonably
comparable wholesale access rule.
104. To address potential harm to its
competitors and consumers, TelePacific
recommends either: (i) Automatically
granting a section 214 application on
the date of a copper retirement, as long
as the application is submitted at least
60 days before implementation of a
copper retirement; or (ii) ‘‘requir[ing] a
delay in the copper retirement until the
competitive LEC’s discontinuance no
longer creates ‘an unreasonable degree
of customer hardship.’ ’’ There is
currently no mechanism for delaying a
copper retirement, assuming the
incumbent LEC’s notice complies with
the Commission’s rules.
105. Discussion. We revise the
Commission’s rules to harmonize the
discontinuance and newly-revised
copper retirement processes.
Accordingly, if a competitive LEC files
a section 214(a) discontinuance
application based on an incumbent
LEC’s copper retirement notice in
situations where the incumbent is not
discontinuing TDM-based service, the
competitive LEC’s application will be
automatically granted on the effective
date of the copper retirement as long as
it satisfies two conditions. First, the
competitive LEC’s discontinuance
application must be submitted to the
Commission at least 40 days before the
incumbent LEC’s copper retirement
effective date. Section 63.71(e) of the
Commission’s rules provides that ‘‘an
application will be deemed filed on the
date the Commission releases public
notice of the filing.’’ For purposes of the
requirement we adopt today, the 40
days will be measured from the date of
submission for filing rather than on the
date the application is deemed filed
under section 63.71(e). Second, the
competitive LEC’s discontinuance
application must contain a certification
that the basis for the application is the
incumbent LEC’s planned copper
retirement. Under this new requirement,
competitive LECs will have more than
four months to consider the
implications of the planned copper
retirement and weigh their alternatives.
106. As discussed above, the copper
retirement and discontinuance
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processes are distinct, the former based
on notice and the latter on approval. We
conclude this approach strikes the right
balance and harmonizes the two
processes. A competitive LEC will not
be faced with a pending discontinuance
application after it loses access to
copper following a copper retirement,
and incumbent LECs maintain certainty
in the timing of their copper
retirements. We therefore grant in part
TelePacific’s petition.
107. However, we deny the portion of
the Petition that seeks broader relief.
Indefinitely delaying a planned copper
retirement is an untenable option. In the
Emerging Wireline Order, we noted that
‘‘retaining a time-limited notice-based
process ensures that our rules strike a
sensible and fair balance between
meeting the needs of interconnecting
carriers and allowing incumbent LECs
to manage their networks.’’ Thus, in
extending the copper retirement notice
period, we rejected the opportunity to
provide for a notice period longer than
six months. Creating the potential for an
indeterminate period of time before an
incumbent LEC can proceed with a
planned copper retirement would insert
delay and uncertainty into the process
and might deter deployment of nextgeneration technologies, thus
undermining the balance we sought to
attain when adopting the 180-day
copper retirement notice period. Indeed,
delaying copper retirements until any
unreasonable degree of hardship to a
competitive LEC’s customers is
eliminated would transform the copper
retirement process from notice-based to
approval-based. Because the Act
requires only that incumbent LECs
‘‘provide reasonable public notice’’ of
network changes such as copper
retirements, we rejected such a result in
the Emerging Wireline Order. We
reaffirm that conclusion here.
108. Although delaying a copper
retirement would provide carriercustomers and end user customers with
the additional time they need to
consider their options and take steps to
minimize disruption of service and
might even prevent the need for a
competitive LEC to file a preemptive
section 214 application, this also would
create a subjective standard with
resulting uncertainty in timing for the
incumbent LEC such that it would not
be able to plan the specific timeframe of
its network changes with confidence.
This in itself might discourage or delay
certain technology transitions, contrary
to the Commission’s commitment to
support and encourage the deployment
of innovative and improved
communications networks.
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109. Paperwork Reduction Act
Analysis. The Second Report and Order
contains new and modified information
collection requirements subject to the
Paperwork Reduction Act of 1995
(PRA), Public Law 104–13. It will be
submitted to the Office of Management
and Budget (OMB) for review under
section 3507(d) of the PRA. OMB, the
general public, and other Federal
agencies will be invited to comment on
the new or modified information
collection requirements contained in
this proceeding. In addition, we note
that pursuant to the Small Business
Paperwork Relief Act of 2002, Public
Law 107–198, see 44 U.S.C. 3506(c)(4),
we previously sought specific comment
on how the Commission might further
reduce the information collection
burden for small business concerns with
fewer than 25 employees. In this present
document, we: (1) Require carriers to
demonstrate that a service is an
adequate replacement for a legacy voice
service by certifying or showing that one
or more replacement service(s) offers
each of the following: (i) Substantially
similar levels of network infrastructure
and service quality as the applicant
service; (ii) compliance with existing
federal and/or industry standards
required to ensure that critical
applications such as 911, network
security, and applications for
individuals with disabilities remain
effective; and (iii) interoperability and
compatibility with an enumerated list of
applications and functionalities
determined to be key to consumers and
competitors; (2) explicitly permit
carriers to provide customers notice of
discontinuances via email where those
customers have previously agreed to
receive notice from the carrier by that
method; (3) require carriers to provide
notice of planned discontinuances to
Tribal governments in the state in which
the discontinuance is proposed; (4)
require carriers to provide pricing
information about the applicant service
subject to discontinuance and the
proposed replacement service; and (5)
require carriers to provide an adequate
consumer outreach plan and
accompanying consumer education
materials when discontinuing legacy
retail services. We also revise section
51.329(c) of the Commission’s rules to
include two new titles that may be used
to label public notices of network
changes. And in the Order on
Reconsideration, we revise the
Commission’s rules to provide that if a
competitive LEC files a section 214(a)
discontinuance application based on an
incumbent LEC’s copper retirement
notice without an accompanying
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discontinuance of TDM-based service,
the competitive LEC’s application will
be automatically granted on the effective
date of the copper retirement as long as
(1) the competitive LEC submits its
discontinuance application to the
Commission at least 40 days before the
incumbent LEC’s copper retirement
effective date, and (2) the competitive
LEC’s discontinuance application
contains a certification that the basis for
the application is the incumbent LEC’s
planned copper retirement. We have
assessed the effects of these
requirements and find that any burden
on small businesses will be minimal
because: (1) We do not require carriers
to conduct testing or otherwise meet the
criteria we adopt today; (2) carriers
already conduct testing when
developing their networks; (3) once a
carrier completes testing of a nextgeneration service and successfully
obtains automatic grant, it need not
provide testing results again if it files an
application involving a substantially
similar replacement service; (4) we
include a small business exemption
from the testing requirements; (5) we are
not imposing new standards of service
on carriers seeking to discontinue
existing services; (6) we are permitting
carriers to provide notice to customers
by means through which the customer
has already agreed to receive
communications from the carrier; (7) the
notice that carriers must provide to
Tribal governments is the very same
notice they must already provide to the
public utility commission and to the
governor of the state in which the
discontinuance, reduction, or
impairment of service is proposed, and
to the Secretary of Defense; (8) carriers
must already appropriately label their
network change disclosures; and (9) we
address a gap in our rules such that now
a competitive LEC will not be faced
with a pending discontinuance
application after it loses access to
copper following a copper retirement
and incumbent LECs maintain certainty
in the timing of their copper
retirements.
110. Congressional Review Act. The
Commission will send a copy of this
Second Report and Order and Order on
Reconsideration to Congress and the
Government Accountability Office
pursuant to the Congressional Review
Act.
111. Final Regulatory Flexibility
Analysis. As required by the Regulatory
Flexibility Act of 1980, as amended
(RFA), the Commission included an
Initial Regulatory Flexibility Analysis
(IRFA) of the possible significant
economic impact on a substantial
number of small entities of the policies
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and rules proposed in the Emerging
Wireline Order and FNPRM in GN
Docket No. 13–5, 80 FR 57768–01. The
Commission sought written public
comment on the proposals in the
FNPRM, including comment on the
IRFA. This Final Regulatory Flexibility
Analysis (FRFA) conforms to the RFA.
112. Need for, and Objectives of, the
Final Rules. In the Emerging Wireline
Order and FNPRM, 80 FR 57768–01, the
Commission emphasized the
importance of speeding market-driven
technological transitions and
innovations while preserving the core
statutory values as codified by Congress:
Competition, consumer protection,
universal service, and public safety. In
this Order, we further those values by
updating our review and notice
procedures governing the filing and
review of technology transitions
discontinuance applications filed
pursuant to section 214 of the Act.
Furthering these core values will
accelerate customer adoption of
technology transitions. The Order
adopts rules that will appropriately
manage the technology transitions, and
develop the right framework for new
technologies. To fulfill the
Commission’s goal of stripping away the
outdated and unnecessary, we have
provided common sense solutions in the
interim until this as yet not fully formed
new technology regime emerges.
113. In this Order, we define our
expectations for what the public interest
will require before a carrier can take a
legacy voice service off the market and
refine our section 214 discontinuance
notice requirements to ensure that the
public is aware of and prepared for such
transitions. The action we take is in the
public interest as we are providing
certainty to carriers, thereby advancing
technology transitions.
114. Technology Transitions
Discontinuance Applications. In the
context of discontinuance applications
related to technology transitions, the
public interest requires that applicants
filing to discontinue a legacy TDMbased voice service as part of a
transition to a new technology, whether
IP, wireless, or another type (technology
transition discontinuance applicants)
must identify in the application that a
technology transition is implicated.
Unlike traditional discontinuance
applications, in order to retain
eligibility for streamlined processing
and potential automatic grant, the Order
requires that technology transition
discontinuance applicants submit with
their application either a certification or
a showing as to whether an adequate
replacement exists in the service area.
Applicants also must submit price
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information about the service subject to
discontinuance and the proposed
replacement service.
115. Specifically, the Order requires
that an applicant for a 214
discontinuance demonstrates that a
service is an adequate replacement for a
legacy voice service by certifying or
showing that one or more replacement
service(s) offers each of the following: (i)
Substantially similar levels of network
infrastructure and service quality as the
applicant service; (ii) compliance with
existing federal and/or industry
standards required to ensure that critical
applications such as 911, network
security, and applications for
individuals with disabilities remain
available; and (iii) interoperability and
compatibility with an enumerated list of
applications and functionalities
determined to be key to consumers and
competitors.
116. Technology transition applicants
can either demonstrate compliance with
these objective criteria or make a
demonstration that, despite not being
able to meet the criteria, the totality of
the circumstances demonstrates that an
adequate replacement nonetheless
exists. Applicants either (i) certifying or
(ii) demonstrating successfully through
their showing that an adequate
replacement exists remain eligible for
automatic grant pursuant to section
63.71(d) of the Commission’s rules as
long as the existing requirements for
automatic grant are satisfied. To ensure
that consumers receive the integrated
service experience they need and
deserve, the Order requires that a single
service (whether first- or third-party)
satisfy all three prongs of the adequate
replacement test in order to be eligible
for automatic grant.
117. The Order explains that if an
applicant cannot certify or make that
showing, or declines to pursue the
voluntary path of streamlined treatment,
it must include in its application an
explanation of how their proposed
discontinuance will not harm the public
interest with specific reference to the
five factors the Commission
traditionally considers. The Bureau,
acting on delegated authority, will then
weigh that information as part of the
traditional multi-factor evaluation, but
with the adequate replacement factor
subject to increased scrutiny under the
newly enhanced test.
118. The Order rejects calls from
incumbent LECs to presume that
particular technologies, by their nature,
represent an adequate replacement for
legacy voice services in all instances.
Our public interest analysis demands
that applicants provide objective
evidence showing a replacement service
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will provide quality service and access
to needed applications and
functionalities. At the same time, we
recognize the importance of promoting
speedy transitions. Therefore, the Order
allows a for a more streamlined
approach for discontinuances involving
services that are substantially similar to
those for which section 214
discontinuance has previously been
approved. Commenters will have the
opportunity to rebut an applicant’s
planned reliance on a previous
application if they can offer substantial
evidence that the technology or network
infrastructure are not in fact
substantially similar to the service
subject to the certifications in the
previous application or the
certifications have been proven
unreliable, based on significant
consumer complaints or new
independent data. The practical effect of
this rule is to allow the applicant to
bypass the performance testing
requirements. This streamlined
approach benefits applicants, while
protecting the interests of all
stakeholders, industry and consumers.
119. The Order further streamlines the
section 214 process in instances where
consumers no longer subscribe to legacy
voice services. Although this
rulemaking is focused primarily on
technology transitions, the Commission
emphasizes the market is constantly
evolving, even outside the context of
these crucial transitions. For that
reason, the Commission adopts AT&T’s
commonsense proposal that a section
214 discontinuance application be
eligible for automatic grant without any
further showing if the applicant can
demonstrate that the service has zero
customers in the relevant service area
and no requests for service in the last
six months.
120. The Order also rejects incumbent
LECs’ contention that we should
establish timelines for reviewing
applications that are not eligible for
automatic grant. The Order rejects this
request because the public interest
demands that we provide appropriate
scrutiny and careful review to
discontinuance applications related to
technology transitions given their
novelty and complexity, and we cannot
guarantee at this time how long that
process will take. Such timelines could
force the Commission to shortchange its
responsibility to ensure that technology
transitions result in high service quality
and successful customer experiences.
121. The Order finds that both first
and third party services should be
eligible as potential adequate
replacement services. The Order
concludes that applicants relying on a
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third party service should be allowed to
make a prima facie showing based on
publicly available information as to
whether the third party service meets
our test as an adequate replacement.
The Order emphasizes that the adequate
replacement test is only part of the
public interest analysis, and the
Commission will take into account an
applicant’s faultless inability to access
necessary data and information from a
third party when reviewing any
application that relies on the existence
of third party services to meet the
adequate replacement test. An objector
to a section 214 application relying on
a third party service must rebut the
prima facie showing made by the
applicant. Should the objector raise
legitimate concerns, the Commission
will remove the application from
consideration for automatic grant. In
attempting to rebut such a showing,
members of the public who use the third
party service can agree to participate in
tests necessary to measure network
performance, as required under the
criteria.
122. The Order declines to provide
any rural LEC exemption. The order
concludes that rural consumers, with
often limited choice in service
providers, should equally benefit from
full consideration of the adequacy of
any replacement service to ensure
continued network performance and
service quality, as well as access to
critical applications, and
interoperability with valued services.
Moreover, the Order concludes that
rural LECs have offered no compelling
justification as to why the adequate
replacement criteria would not be just
as beneficial to their customers as they
would be to the customers of other 214
discontinuance applicants in
demonstrating the adequacy of
replacement services. However, as
discussed below, we are exempting
small businesses, including rural LECs
that satisfy the standard for this
designation from the network testing
requirements we adopt today to remain
eligible for automatic grant.
123. The Order does not include
affordability as a separate criterion
under the adequate replacement test but
states that the cost of replacement
services will be considered during the
application review process. The Order
concludes that if there is a material
increase in the price for the replacement
service compared to the service to be
discontinued, the Bureau will not place
the application on streamlined
processing.
124. Adequate Replacement Test.
After adopting the general framework,
the Order details a three-prong adequate
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replacement test that enables potential
automatic grant of a discontinuance
application. We emphasize that no
carrier must meet these criteria or
conduct testing. Also, the adequate
replacement factor is merely one part of
a multifactor balancing test, and the
benchmarks associated with the criteria
provide guidance to carriers and a path
toward automatic grant of their
technology transitions discontinuance
applications. We also emphasize that
once a carrier completes testing of a
next-generation service and successfully
obtains automatic grant, it need not
conduct testing again if it files an
application involving a substantially
similar replacement service.
125. Prong One: Network
Infrastructure and Service Quality. First,
consumers expect and deserve a
replacement for an applicant service
that will provide comparable network
quality and service performance.
Therefore, the Order requires that to
satisfy the first prong of the adequate
replacement test and thus remain
eligible for automatic grant, an applicant
must demonstrate that a service or
combination of services provides: (a)
Substantially similar network
performance as the service being
discontinued, which involves satisfying
benchmarks for latency and data-loss;
(b) substantially similar service
availability as the service being
discontinued, which involves satisfying
a benchmark of 99.99 percent
availability calculated by using data
regarding customer trouble reports, the
average repair interval in responding to
those reports, the number of lines in the
service area, and the duration of the
observation period; and (c) coverage to
the entire affected geographic service
area, which involves demonstrating that
either: (i) A single replacement service
reaches the entire geographic footprint
of the service area subject to
discontinuance, or (ii) there are multiple
providers who collectively cover the
entirety of the affected service area. The
Order interprets ‘‘substantially similar’’
in this context to mean that the network
operates at a sufficient level with
respect to the metrics identified in the
Order, such that the network platform
will ensure adequate service quality for
time-sensitive applications, and support
applications and functionalities that are
associated with these services.
126. Network Performance. The Order
finds that 30 days of network
performance testing is necessary, at least
initially, to ensure that applicants
actually meet the benchmarks we have
established to be eligible for automatic
grant and to ensure that the network is
in a stable state and to allow for long-
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term projection of network
infrastructure performance. The Order
emphasizes that network performance
has long been a hallmark of this
country’s communications networks
and that must continue during the
technology transitions. The Order
specifies the testing methodology to be
used in measuring network performance
in order to avoid confusion and
argument over the merits of particular
results reported by carriers in their
discontinuance applications. Moreover,
established testing parameters will
ensure that the Commission analyzes
similar data sets from applicants in the
technology transitions. While the Order
provides some flexibility in the testing
parameters an applicant will use, the
Commission will include in its
evaluation of the discontinuance
application whether the testing
conditions used were appropriate to
measure performance. Thus, in addition
to testing results, the Commission will
consider the testing parameters as a
factor in determining whether it needs
to remove the application from
streamlined processing. If the testing
parameters raise sufficient concerns
such that the Commission removes the
application from streamlined
processing, the Commission will then
consider those testing parameters in any
totality of the circumstances analysis of
the adequacy of the replacement
network.
127. The Order provides smaller
carriers more flexibility in how they
demonstrate network performance
under this prong of the three-prong test.
We recognize that network testing under
the parameters established in Appendix
B could be more difficult for smaller
carriers and relatively speaking
burdensome, given the more limited
number of customers. Thus, the Order
concludes that carriers with 100,000 or
fewer subscriber lines, aggregated across
all affiliates, may remain eligible for
automatic grant without compliance
with the specific testing requirements of
the network performance criterion we
articulate today. We further note that
this exemption from complying with the
specific testing parameters announced
herein does not apply to any rate-ofreturn carrier that is affiliated with a
price cap carrier. The Order does not
extend this exemption to any other
components of the adequate
replacement test we adopt today,
including both of the other aspects of
the network infrastructure prong
(service quality and network coverage)
or the other two prongs of the test.
128. Service Availability. The Order
concludes that a 99.99 percent service
availability standard, calculated
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according to the formula and parameters
established in the Order, is a reasonable
approach to ensure that a replacement
service presumptively provides
substantially similar service as the
service being discontinued. The Order
adopts a test that consists of a standard
formula traditionally used by industry
to measure telephone service
availability for which the Order defined
the variables to ensure accuracy and
that all discontinuing carriers are
measuring the same information. The
replacement service’s availability will
be calculated using data regarding
customer trouble reports, the average
repair interval in responding to those
reports, the number of lines in the
service area, and the duration of the
observation period to reach a
representative measurement of a ‘‘four
9s’’ benchmark used to measure service
availability. The Order concludes these
variables will provide the best measure
of customers’ ability to access their
provider’s network. And, as with the
network performance testing, the Order
requires a 30-day observation period to
ensure network stability and allow for
long-term projection of network
reliability.
129. Certain non-packet wireless
access technologies providing fixed
services can experience the failure of
voice calls because of network
congestion. To address this potential
issue, we establish a metric that applies
solely to these technologies for
determining the frequency of
congestion-based voice call failure,
meaning the probability that a customer
trying to make a call will be unable to
do due to network congestion. We
conclude that, to satisfy this benchmark
and remain eligible for automatic grant,
the probability must be less than one
percent during the daily peak busy hour
for at least 95 percent of the 30 days in
the measurement period, for this type of
network to serve as an adequate
replacement for a legacy voice service.
Non-packet wireless access technologies
used to provide fixed services are of
particular concern here because, unlike
service over copper loops which is
dedicated to one subscriber, the radio
access network is shared by multiple
subscribers. The network could thus
conceivably lack adequate capacity and
result in an unacceptable level of failed
calls due to congestion.
130. Establishing a benchmark for
service availability protects consumers,
schools, libraries, healthcare facilities,
utilities, and small- and medium-sized
businesses, all of which depend on a
service to be available when needed for
everyday or emergency use. Past
experiences, including what occurred
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on Fire Island after Superstorm Sandy,
demonstrate the importance of
reliability as we undergo technology
transitions. We now find that a service
availability benchmark will help
provide interested stakeholders with
clear, objective ‘‘criteria that will
eliminate uncertainty that could
potentially impede the industry from
actuating a rapid and prompt transition
to IP and wireless technology.’’
131. Network Coverage. The Order
requires that to meet this prong and thus
be eligible for streamlined processing, a
replacement service must be available to
all affected customers covering the
entire geographic scope of the service
area subject to the application and
actually function as intended for
affected customers, or else it cannot be
certified as a replacement service for
those customers. Specifically, in order
to be eligible for automatic grant, the
application must describe with
sufficient particularity the geographic
scope of the replacement service(s)
available from the other provider(s) and
must otherwise demonstrate that each of
these services satisfies the criteria we
adopt today. This requirement promotes
the core values established by the Act,
including that of ensuring universal
access. Allowing a carrier to discontinue
service when there are no other service
options available would run contrary to
that mission. Additionally, this
requirement, as a part of our
overarching determination of the public
interest implications of a
discontinuance application, sufficiently
addresses any concerns regarding
potential disparate impacts on minority
communities. The Order declined to
adopt a de minimis threshold for
judging whether a replacement service
offers the same coverage as to ensure
that all customers in a service territory
where the legacy voice service is offered
continue to have the ability to obtain
service.
132. Prong Two: Critical Applications.
Second, the public relies on assurances
that critical applications related to
public safety and protecting those most
vulnerable remain accessible and
operational through any transition.
Therefore, to satisfy the second prong of
the adequate replacement test and
remain eligible for automatic grant,
applicants must demonstrate that access
to critical applications and
functionalities as required under our
rules remains available. Under this
second prong, an applicant for
discontinuance of service must certify
that at least one replacement service
complies with Commission regulations
regarding availability and functionality
of 911 service for consumers and public
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safety answering points (PSAPs),
provides comparably effective network
security, and complies with
Commission regulations regarding
compatibility with assistive
technologies. Incorporating these
certifications into our section 214
process benefits consumers, public
safety entities, and industry participants
alike by providing clear, consistent, and
certain guidance regarding the
importance of ensuring that critical
applications will continue to function
following a technology transition and
are free from network vulnerabilities.
133. The Order specifically concludes
that, in order to satisfy the consumer
access to 911 requirement and remain
eligible for automatic grant, the
replacement service must offer a
dispatchable address capability. If the
rules applicable to the replacement
service require provision of an MSAGvalidated address, the applicant may
meet this requirement by certifying that
its replacement service meets the 911
registered location requirements
applicable to that service in the
Commission’s rules. However, if the 911
requirements for the replacement
service do not require provision of a
validated address, the applicant must
further certify that it will register a
validated dispatchable address for each
subscriber and provide the address to
the appropriate PSAP for all 911 calls.
If relying on a third party service, the
applicant must show that the third party
service provide meets this requirement
to allow the applicant to remain eligible
for streamlined processing. These
requirements will ensure that PSAPs
continue to receive accurate location
information to dispatch emergency first
responders directly to the correct
location of the 911 call, thereby serving
to minimize the response time critical
for saving lives and safeguarding the
public.
134. The Commission declined to
impose any new financial obligations on
carriers under this prong. For example,
while we acknowledge the perspective
of consumer advocacy groups and state
and local governments that argue that
when the transition to a replacement
service requires upgrade of assistive
technologies, the applicant should not
only inform affected users of the
associated costs but help subsidize
them, we emphasize that that this is not
the appropriate forum in which to
impose any new financial obligations
upon providers.
135. Prong Three: Interoperability.
Third, we also emphasize in the Order
that consumers should have access to
the applications and functionalities they
have come to associate as—and which
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currently remain—key components of
the applicant service. Therefore, to
satisfy the third prong of the adequate
replacement test and retain eligibility
for streamlined processing, the Order
requires that an applicant must
demonstrate that a replacement service
offers compatibility with an enumerated
set of applications and functionalities.
The Order adopts AT&T’s proposal that
widely adopted low-speed modem
devices such as fax machines, home
security alarms, medical monitoring
devices, analog-only caption telephone
sets, and point-of-sale terminals should
make up the initial list of key
applications for which interoperability
is required.
136. The Order directs the Office of
Engineering and Technology, working
in consultation with the Wireline
Competition Bureau and the Wireless
Telecommunications Bureau (Bureaus)
and subject to the guidelines below, to
seek comment and, based on the record
developed, propose additions to the list
of key applications and functionalities
adopted above for Commission review
and approval. These guidelines are: (i)
Whether customers rely on the
application or functionality for health or
safety reasons; (ii) whether the
application or functionality is used as a
wholesale input by other providers; (iii)
whether the application or functionality
relies on vendor equipment or inputs
that have been discontinued; and (iv)
whether the service provider, as
opposed to the end-user customer, is the
least-cost avoider. The Order concludes
that it is appropriate to expect that
replacement services offer compatibility
with these devices until 2025. These
guidelines reflect our goal of ensuring
that the technology transitions broadly
benefit consumers, including those who
still value certain applications and
functionalities associated with legacy
voice services. Applying certain marketbased considerations and adopting a
sunset for this requirement is intended
to address incumbent LECs’ concerns
about being placed at a potential
competitive disadvantage by requiring
them indefinitely to retain applications
and functionalities that are no longer
important to consumers.
137. Again, whether by certification
or appropriate showing, applicants
meeting this adequate replacement test
will still have the opportunity for
automatic grant, allowing for speedy
review where an applicant complies
with all relevant standards. Our mission
here is to ensure a customer experience
with the replacement service that is
substantially similar to the customer
experience with the service being
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discontinued, not to create new
obligations.
138. Other Issues. Customer
Education & Outreach Plan. The Order
requires that an applicant offer an
adequate customer education and
outreach plan in accessible and usable
formats. An adequate customer outreach
plan includes: (i) The development and
dissemination of educational materials,
provided to all customers affected,
containing specific information
pertinent to the transition; (ii) the
creation of a telephone hotline and the
option to create an additional
interactive and accessible service to
answer questions regarding the
transition; and (iii) appropriate training
of staff to field and answer consumer
questions about the transition. The
educational materials must include, at
minimum: (i) A general description of
the changes to the service, written in a
non-technical manner that can be
readily understood by the average
consumer; (ii) the impact on existing
applications and functionalities that are
likely to be purchased by individual
customers, including whether such
applications and functionalities will be
available following the transition; (iii)
any change in the price of the service
and impact on applications and
functionalities which run on the service
to be discontinued; and (iv) points of
contact who will address technology
transitions issues, as much as is
practicable. If the applicant is relying on
a third party service, we require the
applicant to provide: (i) Contact
information for that third party; and (ii)
upon inquiry from a consumer,
information regarding the
interoperability and compatibility of
applications and functionalities
benefiting individuals with disabilities
that run on the applicant’s legacy voice
service. Moreover, to ensure that
customers understand the notice that
they receive, any applicant who in the
ordinary course of business regularly
uses a language other than English in its
communications with customers must
provide the education materials to
customers in both English and that
regularly used language. We find that
the establishment of clear guidance on
education outreach materials will help
promote the smoothest possible
technology transition, consumer choice,
and the fulfillment of consumer
information needs. We also find that the
plan’s additional protections for
vulnerable consumers, as well as the
required hotline, further promote these
values. Moreover, we do not find these
requirements to be overly burdensome,
as much of the information we are
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requiring is similar to the information
required through copper retirement
notices under the rules adopted in the
Emerging Wireline Order. The
Commission will consider a carrier’s
certification to these requirements as
part of its overall analysis of whether
granting the application would be in the
public interest.
139. Email Notice. The rules adopted
in the Order allow carriers to provide
email notice to customers of a planned
discontinuance where those customers
have previously agreed to receive notice
from the carrier by that method. The
Order allows carriers to provide notice
by any other alternative method to
which the customer has previously
agreed. In both instances, the same
provisos adopted in connection with the
recently-adopted copper retirement
rules shall apply (e.g., notice must be
made in a clear and conspicuous
manner; and may not contradict or be
inconsistent with any other information
with which it is presented). In addition,
(a) the incumbent LEC must have
previously obtained express, verifiable,
prior approval from retail customers to
send notices via email regarding their
service in general, or planned network
changes in particular; (b) an incumbent
LEC must ensure that the subject line of
the message clearly and accurately
identifies the subject matter of the
email; and (c) any email notice returned
to the carrier as undeliverable will not
constitute the provision of notice to the
customer. As in the copper retirement
context, this requirement should be
sufficient to ensure that customers
receive notice, without imposing
unnecessary additional burdens on
incumbent LECs. This outcome affords
carriers greater flexibility in providing
notice of discontinuances and
establishes a measure of symmetry
between the email notice requirements
for discontinuances and the copper
retirement rules.
140. Notice to Tribal Governments.
Further, the rules adopted in the Order
require all carriers to provide notice of
discontinuance applications to Tribal
governments in the state in which the
discontinuance is proposed, in addition
to the notice already required to state
PUCs, state governors, and the
Department of Defense. This outcome
aligns the notice requirements for
section 214 discontinuance applications
and copper retirement network changes,
imposes the same requirement on all
carriers serving Tribal lands, and places
Tribal governments in all states in a
position to prepare and address any
concerns from consumers in their Tribal
communities. The Order also rejected
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proposals to revise the discontinuance
timing of notice rules in section 63.71.
141. Timing of Notice. The Order
rejects revising section 63.71 to require
advance notice of a planned
discontinuance or to lengthen the
discontinuance process by changing the
existing timeline for filing objections
and/or allowing automatic grant. Based
on the record, we conclude that there is
no evidence of actual harm; however,
we recognize that large-scale technology
transition-related discontinuances have
not yet occurred. Thus, while we do not
revise section 63.71 in this Order, we
emphasize that the Commission may
revisit this issue if presented with
evidence of such a need in the future.
142. Order On Reconsideration. The
Order on Reconsideration revises the
Commission’s rules to make a
competitive LEC’s application for
discontinuance deemed granted on the
effective date of any copper retirement
that made the discontinuance
unavoidable as long as the
discontinuance application is filed at
least 40 days prior to the retirement
effective date and the competitive LEC
certifies that the copper retirement was
the basis for the discontinuance. This is
intended to address a gap in the
Commission’s rules that left competitive
LECs potentially without recourse to
avoid violating the discontinuance
rules. Under this new requirement,
competitive LECs will have more than
four months to consider the
implications of the planned copper
retirement and weigh their alternatives.
143. Summary of Significant Issues
Raised by Public Comments to the IRFA.
There were no comments raised that
specifically addressed the proposed
rules and policies presented in the
FNPRM IRFA (80 FR 57768–01).
Nonetheless, the Commission
considered the potential impact of the
rules proposed in the IRFA on small
entities and reduced the compliance
burden for all small entities in order to
reduce the economic impact of the rules
enacted herein on such entities.
144. Response to Comments by the
Chief Counsel for Advocacy of the Small
Business Administration. Pursuant to
the Small Business Jobs Act of 2010,
which amended the RFA, the
Commission is required to respond to
any comments filed by the Chief
Counsel of the Small Business
Administration (SBA), and to provide a
detailed statement of any change made
to the proposed rule(s) as a result of
those comments. The Chief Counsel did
not file any comments in response to the
proposed rule(s) in this proceeding.
145. Description and Estimate of the
Number of Small Entities to Which
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Rules May Apply. The RFA directs
agencies to provide a description of and,
where feasible, an estimate of the
number of small entities that may be
affected by the proposed rules, if
adopted. The RFA generally defines the
term ‘‘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.
Pursuant to the RFA, the statutory
definition of a small business applies
‘‘unless an agency, after consultation
with the Office of Advocacy of the
Small Business Administration and after
opportunity for public comment,
establishes one or more definitions of
such term which are appropriate to the
activities of the agency and publishes
such definition(s) in the Federal
Register.’’ A small business concern is
one that: (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). A
small business is an independent
business having less than 500
employees. Nationwide, there are a total
of approximately 28.2 million small
businesses, according to the SBA.
146. The majority of the rules and
policies adopted in the Order will affect
obligations on incumbent LECs and, in
some cases, competitive LECs. Our
actions, over time, may affect small
entities that are not easily categorized at
present. We therefore describe here, at
the outset, the comprehensive small
entity size standards that could be
directly affected herein.
147. Wireline Providers. Wired
Telecommunications Carriers. The SBA
has developed a small business size
standard for Wired Telecommunications
Carriers, which consists of all such
companies having 1,500 or fewer
employees. According to Census Bureau
data for 2007, there were 3,188 firms in
this category, total, that operated for the
entire year. Of this total, 3,144 firms had
employment of 999 or fewer employees,
and 44 firms had employment of 1,000
employees or more. Thus, under this
size standard, the majority of firms can
be considered small.
148. Local Exchange Carriers (LECs).
Neither the Commission nor the SBA
has developed a size standard for small
businesses specifically applicable to
local exchange services. The closest
applicable size standard under SBA
rules is for Wired Telecommunications
Carriers. Under that size standard, such
a business is small if it has 1,500 or
fewer employees. According to
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Commission data, 1,307 carriers
reported that they were incumbent local
exchange service providers. Of these
1,307 carriers, an estimated 1,006 have
1,500 or fewer employees and 301 have
more than 1,500 employees.
Consequently, the Commission
estimates that most providers of local
exchange service are small entities that
may be affected by rules adopted
pursuant to the Order.
149. Incumbent Local Exchange
Carriers (Incumbent LECs). Neither the
Commission nor the SBA has developed
a small business size standard
specifically for incumbent local
exchange services. The closest
applicable size standard under SBA
rules is for the category Wired
Telecommunications Carriers. Under
that size standard, such a business is
small if it has 1,500 or fewer employees.
According to Commission data, 1,307
carriers reported that they were
incumbent local exchange service
providers. Of these 1,307 carriers, an
estimated 1,006 have 1,500 or fewer
employees and 301 have more than
1,500 employees. Consequently, the
Commission estimates that most
providers of incumbent local exchange
service are small businesses that may be
affected by rules adopted pursuant to
the Order.
150. We have included small
incumbent LECs in this present RFA
analysis. As noted above, a ‘‘small
business’’ under the RFA is one that,
inter alia, meets the pertinent small
business size standard (e.g., a telephone
communications business having 1,500
or fewer employees), and ‘‘is not
dominant in its field of operation.’’ The
SBA’s Office of Advocacy contends that,
for RFA purposes, small incumbent
LECs are not dominant in their field of
operation because any such dominance
is not ‘‘national’’ in scope. The Small
Business Act contains a definition of
‘‘small business concern,’’ which the
RFA incorporates into its own definition
of ‘‘small business.’’ We have therefore
included small incumbent LECs in this
RFA analysis, although we emphasize
that this RFA action has no effect on
Commission analyses and
determinations in other, non-RFA
contexts.
151. Competitive Local Exchange
Carriers (Competitive LECs),
Competitive Access Providers (CAPs),
Shared-Tenant Service Providers, and
Other Local Service Providers. Neither
the Commission nor the SBA has
developed a small business size
standard specifically for these service
providers. The appropriate size standard
under SBA rules is for the category
Wired Telecommunications Carriers.
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Under that size standard, such a
business is small if it has 1,500 or fewer
employees. According to Commission
data, 1,442 carriers reported that they
were engaged in the provision of either
competitive local exchange services or
competitive access provider services. Of
these 1,442 carriers, an estimated 1,256
have 1,500 or fewer employees and 186
have more than 1,500 employees. In
addition, 17 carriers have reported that
they are Shared-Tenant Service
Providers, and all 17 are estimated to
have 1,500 or fewer employees. In
addition, 72 carriers have reported that
they are Other Local Service Providers.
Of the 72, seventy have 1,500 or fewer
employees and two have more than
1,500 employees. Consequently, the
Commission estimates that most
providers of competitive local exchange
service, competitive access providers,
Shared-Tenant Service Providers, and
other local service providers are small
entities that may be affected by rules
adopted pursuant to the Order.
152. Interexchange Carriers. Neither
the Commission nor the SBA has
developed a small business size
standard specifically for providers of
interexchange services. The appropriate
size standard under SBA rules is for the
category Wired Telecommunications
Carriers. Under that size standard, such
a business is small if it has 1,500 or
fewer employees. According to
Commission data, 359 carriers have
reported that they are engaged in the
provision of interexchange service. Of
these, an estimated 317 have 1,500 or
fewer employees and 42 have more than
1,500 employees. Consequently, the
Commission estimates that the majority
of IXCs are small entities that may be
affected by rules adopted pursuant to
the Order.
153. Other Toll Carriers. Neither the
Commission nor the SBA has developed
a size standard for small businesses
specifically applicable to Other Toll
Carriers. This category includes toll
carriers that do not fall within the
categories of interexchange carriers,
operator service providers, prepaid
calling card providers, satellite service
carriers, or toll resellers. The closest
applicable size standard under SBA
rules is for Wired Telecommunications
Carriers. Under that size standard, such
a business is small if it has 1,500 or
fewer employees. According to
Commission data, 284 companies
reported that their primary
telecommunications service activity was
the provision of other toll carriage. Of
these, an estimated 279 have 1,500 or
fewer employees and five have more
than 1,500 employees. Consequently,
the Commission estimates that most
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Other Toll Carriers are small entities
that may be affected by rules adopted
pursuant to the Order.
154. Wireless Providers. Wireless
Telecommunications Carriers (except
Satellite). Since 2007, the Census
Bureau has placed wireless firms within
this new, broad, economic census
category. Under the present and prior
categories, the SBA has deemed a
wireless business to be small if it has
1,500 or fewer employees. For the
category of Wireless
Telecommunications Carriers (except
Satellite), census data for 2007 show
that there were 1,383 firms that operated
for the entire year. Of this total, 1,368
firms had employment of 999 or fewer
employees and 15 had employment of
1,000 employees or more. Since all
firms with fewer than 1,500 employees
are considered small, given the total
employment in the sector, we estimate
that the vast majority of wireless firms
are small.
155. Wireless Telephony. Wireless
telephony includes cellular, personal
communications services, and
specialized mobile radio telephony
carriers. The SBA has developed a small
business size standard for Wireless
Telecommunications Carriers (except
Satellite). Under the SBA small business
size standard, a business is small if it
has 1,500 or fewer employees.
According to Commission data, 413
carriers reported that they were engaged
in wireless telephony. Of these, an
estimated 261 have 1,500 or fewer
employees and 152 have more than
1,500 employees. Consequently, the
Commission estimates that
approximately half or more of these
firms can be considered small. Thus,
using available data, we estimate that
the majority of wireless firms can be
considered small.
156. Cable Service Providers. Cable
and Other Program Distributors. Since
2007, these services have been defined
within the broad economic census
category of Wired Telecommunications
Carriers; that category is defined as
follows: ‘‘This industry comprises
establishments primarily engaged in
operating and/or providing access to
transmission facilities and infrastructure
that they own and/or lease for the
transmission of voice, data, text, sound,
and video using wired
telecommunications networks.
Transmission facilities may be based on
a single technology or a combination of
technologies.’’ The SBA has developed
a small business size standard for this
category, which is: All such firms
having 1,500 or fewer employees. To
gauge small business prevalence for
these cable services we must, however,
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use current census data that are based
on the previous category of Cable and
Other Program Distribution and its
associated size standard; that size
standard was all such firms having
$13.5 million or less in annual receipts.
According to Census Bureau data for
2007, there were a total of 3,188 firms
in this category that operated for the
entire year. Of this total, 2,684 firms had
annual receipts of under $10 million,
and 504 firms had receipts of $10
million or more. Thus, the majority of
these firms can be considered small and
may be affected by rules adopted
pursuant to the Order.
157. Cable Companies and Systems.
The Commission has also developed its
own small business size standards, for
the purpose of cable rate regulation.
Under the Commission’s rules, a ‘‘small
cable company’’ is one serving 400,000
or fewer subscribers, nationwide. The
Commission determined that this size
standard equates approximately to a size
standard of $100 million or less in
annual revenues. The Commission also
applied this size standard to MVPD
operators in its implementation of the
CALM Act. Industry data shows that
there are 660 cable operators in the
country. Depending upon the number of
homes and the size of the geographic
area served, cable operators use one or
more cable systems to provide video
service. Of this total, all but eleven cable
operators nationwide are small under
this size standard. In addition, under
the Commission’s rules, a ‘‘small
system’’ is a cable system serving 15,000
or fewer subscribers. Current
Commission records show 4,945 cable
systems nationwide. The number of
active, registered cable systems comes
from the Commission’s Cable
Operations and Licensing System
(COALS) database on Aug. 28, 2013. A
cable system is a physical system
integrated to a principal headend.
158. Of this total, 4,380 cable systems
have less than 20,000 subscribers, and
565 systems have 20,000 or more
subscribers, based on the same records.
Thus, under this standard, we estimate
that most cable systems are small
entities.
159. All Other Telecommunications.
The Census Bureau defines this industry
as including ‘‘establishments primarily
engaged in providing specialized
telecommunications services, such as
satellite tracking, communications
telemetry, and radar station operation.
This industry also includes
establishments primarily engaged in
providing satellite terminal stations and
associated facilities connected with one
or more terrestrial systems and capable
of transmitting telecommunications to,
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and receiving telecommunications from,
satellite systems. Establishments
providing Internet services or Voice
over Internet Protocol (VoIP) services
via client-supplied telecommunications
connections are also included in this
industry.’’ The SBA has developed a
small business size standard for this
category; that size standard is $32.5
million or less in average annual
receipts. According to Census Bureau
data for 2007, there were 2,383 firms in
this category that operated for the entire
year. Of these, 2,346 firms had annual
receipts of under $25 million and 37
firms had annual receipts of $25 million
or more. Consequently, we estimate that
the majority of these firms are small
entities that may be affected by our
action.
160. Description of Projected
Reporting, Recordkeeping, and Other
Compliance Requirements for Small
Entities. A number of our rule changes
will result in additional reporting,
recordkeeping, or compliance
requirements for small entities. All of
the rules we implement impose some
compliance burdens on small entities by
requiring them to become familiar with
the new rules to comply with them. In
certain cases, the burden of becoming
familiar with the new rule in order to
comply with it is the only additional
burden the rule imposes. For all of the
rule changes, we have determined that
the benefit the rule change will bring for
consumers, competition, and innovation
outweighs the burden of the increased
requirement/s. Other rule changes
decrease reporting, recordkeeping, or
compliance requirements for small
entities. We have noted the applicable
rule changes below impacting small
entities.
161. Adequate Replacement Test. Any
carrier that wants the potential for
automatic grant of a technology
transition discontinuance application
must comply with the new adequate
replacement test explained above.
Although this will increase reporting,
recordkeeping, and compliance
requirements for small businesses these
certification and compliance
requirements are minimally necessary to
enable us to evaluate these types of
discontinuance applications more
briskly to the benefit of applicants,
consumers, and public safety entities.
We specifically balance these burdens
against the need to ensure that nextgeneration services meet the needs of
consumers. These standards will create
certainty regarding technology
transitions discontinuances, and will
benefit consumers, public safety
entities, and industry participants by
clarifying the importance of ensuring
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that network performance will be
sufficient, that critical applications will
continue to function, and that
consumers will have access to the
applications they associate as key
components of the applicant service
following a technology transition.
162. Allowing transition applicants to
either demonstrate compliance with
objective criteria or make a
demonstration that, despite not being
able to meet the criteria, the totality of
the circumstances demonstrates that an
adequate replacement nonetheless
exists, while remaining eligible for
automatic grant gives applicants
flexibility and decreases the burdens
associated with strict compliance rules.
Additionally, the Commission
evaluating first and third party services
equally and allowing applicants relying
on a third party service to make a prima
facie showing based on publicly
available information as to whether the
third party service meets our test as an
adequate replacement gives applicants
flexibility and decreases compliance
burdens. The Order further promotes
speedy transitions and decreases
compliance burdens by allowing for a
more streamlined approach for
discontinuances involving services that
are substantially similar to those for
which section 214 discontinuance has
previously been approved and
streamlining the section 214 process in
instances where consumers no longer
subscribe to legacy voice service. These
rules allow the applicant to bypass the
performance testing requirements. Thus,
the streamlined approach benefits
applicants by reducing the reporting,
recordkeeping and compliance burdens
resulting from performance testing
requirements, while protecting the
interests of all stakeholders, industry
and consumers. It also ensures a
customer experience with the
replacement service that is substantially
similar to the customer experience with
the service being discontinued, without
creating new overly burdensome
obligations.
163. Moreover, as described above,
established network performance testing
parameters will avoid confusion over
the merits of particular results and
ensure that the Commission analyzes
similar data sets from applicants in the
technology transitions. Although
network testing increases compliance
burdens, the Order provides some
flexibility in the testing parameters an
applicant will use. If the testing
parameters raise sufficient concerns
such that the Commission removes the
application from streamlined
processing, the Commission will still
consider those testing parameters in any
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totality of the circumstances analysis of
the adequacy of the replacement
network. We conclude these metrics are
appropriate for replacement networks in
order to provide substantially similar
performance as a legacy TDM service.
164. Another rule that will decrease
recording, recordkeeping and
compliance burdens on small
businesses is the performance test
exemption for small carriers. We
recognize that in other contexts smaller
carriers may require more tailored
solutions and network testing under the
parameters established in Appendix B
could be more difficult for smaller
carriers and relatively speaking
burdensome, given the more limited
number of customers. Therefore, the
Order provides smaller carriers more
flexibility in how they demonstrate
network performance under this prong
of the three-prong test. The Order
concludes that carriers with 100,000 or
fewer subscriber lines, aggregated across
all affiliates, may remain eligible for
automatic grant without compliance
with the specific testing requirements of
the network performance criterion we
articulate today.
165. The Order’s established
benchmarks for network performance,
service availability, and network
coverage protect consumers that depend
on a network performing properly and
service to be available when needed for
everyday or emergency use. Similarly,
consumer access to 911 and the
dispatchable address requirement are
critical to ensuring public safety. The
Order also notes that transitioning from
legacy-based services to new
technologies presents new network
vulnerability issues that did not exist
with legacy technologies and comparing
legacy voice services to new
technologies is in part an apples-tooranges comparison. Thus, in order to
demonstrate that a replacement service
is offering comparable security, the
Order finds that a security benchmark
that measures the unique risks
associated with new technologies is
necessary. The Order notes that
satisfaction of this criterion is part of the
adequate replacement test required for
streamlined processing and is not
mandatory to discontinue service
generally. Moreover, the Order’s
interoperability guidelines reflect our
goal of ensuring that technology
transitions broadly benefit consumers of
all types, including those who still
value certain applications and
functionalities associated with legacy
voice services.
166. Therefore, the benefits of the
adequate replacement test outweigh any
additional reporting, recordkeeping, or
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compliance obligations upon small
businesses.
167. Application Requirements.
Applicants filing technology transition
discontinuance applications and
seeking streamlined treatment are also
required to provide pricing information
about the applicant service subject to
discontinuance and the proposed
replacement service. Although they are
required to provide this information, it
allows the Commission to evaluate the
application in a streamlined manner
without further information collections.
This also ensures that consumer
interests are protected throughout
technology transitions.
168. Consumer Education & Outreach
Plan. While the Order’s establishment of
consumer education and outreach
materials requires a modest increase in
a carrier’s compliance burden, an
overwhelming majority of commenters
support its inclusion as it will help
promote the smoothest possible
technology transition, consumer choice,
and the fulfillment of consumer
information needs. The outreach plan’s
additional protections for vulnerable
consumers, as well as the required
hotline, further promotes these values.
The Commission does not find these
requirements to be overly burdensome
as much of the information we are
requiring is similar to the information
required through copper retirement
notices under the rules adopted in the
Emerging Wireline Order. It also enables
providers to respond to any customers
who need assistance during the
technology transitions process. The
Commission will consider a carrier’s
certification to these requirements as
part of its overall analysis of whether
granting the application would be in the
public interest to minimize the burdens
of strict compliance.
169. Email Notice and Notice to
Tribal Governments. Allowing providers
to send email and alternative forms of
notifications previously accepted by
consumers decreases the burden of the
discontinuance notification requirement
for small businesses. Thus, making the
discontinuance process more
manageable for small businesses.
Requiring carriers to provide notice of
discontinuance applications to Tribal
governments in the state in which the
discontinuance is proposed may
increase the burden on small entities,
but it aligns the notice requirements for
section 214 discontinuance applications
and copper retirement network changes,
imposes the same requirement on all
carriers serving Tribal lands, and places
Tribal governments in all states in a
position to prepare and address any
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concerns from consumers in their Tribal
communities.
170. Order On Reconsideration. The
Order on Reconsideration’s revisions to
the Commission’s rules address a gap in
the former rules that clarifies and
harmonizes the copper retirement and
discontinuance processes. Allowing a
competitive LEC’s application for
discontinuance to be deemed granted on
the effective date of any copper
retirement that made the discontinuance
unavoidable (if they meet certain
requirements described above) reduces
the compliance burdens on competitive
LECs. Additionally, permitting
competitive LECs to have more than
four months to consider the
implications of the planned copper
retirement and weigh their alternative
further reduces their compliance
burdens.
171. Steps Taken to Minimize the
Significant Economic Impact on Small
Entities, and Significant Alternatives
Considered. The RFA requires an
agency to describe any significant,
specifically small business, alternatives
that it has considered in reaching its
proposed approach, which may include
the following four alternatives (among
others): ‘‘(1) The establishment of
differing compliance or reporting
requirements or timetables that take into
account the resources available to small
entities; (2) the clarification,
consolidation, or simplification of
compliance and reporting requirements
under the rule for such small entities;
(3) the use of performance rather than
design standards; and (4) an exemption
from coverage of the rule, or any part
thereof, for such small entities.’’
172. The Commission is aware that
this rulemaking could impact small
entities by imposing costs and
administrative burdens. For this reason,
in reaching its final conclusions and
taking action in this proceeding, the
Commission has taken a number of
measures to minimize or eliminate the
costs and burdens generated by
compliance with the adopted
regulations. As described above, for
example, we considered alternatives to
the rulemaking changes that could have
increased the burden of compliance for
small businesses. We conclude that the
new and updated requirements are
minimally necessary to ensure we meet
our statutory responsibilities with
respect to technology transitions while
preserving the core values of consumer
protection, competition, universal
service, and public safety. We believe
that it is unlikely that small business
will be impacted significantly by the
final rules so as to outweigh the benefits
of the rules.
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173. In fact, we anticipate that in
many instances, small businesses will
find their burden decreased by the new
rules. For example, permitting emailbased notice of planned technology
transitions discontinuances to
customers or notice by any other
alternative method to which the
customer has previously agreed affords
carriers greater flexibility in providing
notice and establishes a measure of
symmetry between the email notice
requirements for discontinuances and
the copper retirement rules. The
requirement is sufficient to provide
customers notice of discontinuance
without imposing additional burdens on
carriers. Requiring carriers to provide
notice of discontinuance applications to
Tribal governments in the state in which
the discontinuance is proposed aligns
the notice requirements for section 214
discontinuance applications and copper
retirement network changes, imposes
the same requirement on all carriers
serving Tribal lands, and places Tribal
governments in all states in a position
to prepare and address any concerns
from consumers in their Tribal
communities.
174. Specifically, allowing technology
transition applicants to either
demonstrate compliance with objective
criteria or make a demonstration that,
despite not being able to meet the
criteria, the totality of the circumstances
demonstrates that an adequate
replacement nonetheless exists, while
remaining eligible for automatic grant,
gives applicants flexibility and
decreases the economic burdens on
small businesses associated with strict
compliance rules. Additionally, the
criteria established in the three-prong
test provides clarity that should enable
us to evaluate these types of
discontinuance applications more
briskly, to the benefit of applicants and
consumers, including small businesses.
Incorporating these certifications into
our section 214 process benefits
consumers, public safety entities, and
industry participants alike by providing
clear, consistent, and certain guidance
regarding the importance of ensuring
that network performance will be
sufficient, critical applications will
continue to function, and that
consumers will have access to the
applications they associate as key
components of the applicant service
following a technology transition.
175. Similarly, the Commission
evaluating first and third party services
equally and allowing applicants relying
on a third party service to make a prima
facie showing based on publicly
available information as to whether the
third party service meets our test as an
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adequate replacement gives small
business applicants flexibility and
decreases the economic burdens
associated with strict compliance rules.
Furthermore, requiring that a single
service (whether first- or third-party)
satisfy all three prongs of the adequate
replacement test in order to be eligible
for automatic grant ensures consumers
receive the integrated service experience
they need and deserve and also reduces
the potential the economic impact of
consumers having to find and employ
multiple service providers to satisfy
their needs.
176. The Order recognizes the
importance of promoting speedy
transitions by allowing for a more
streamlined approach for
discontinuances involving services that
are substantially similar to those for
which section 214 discontinuance has
previously been approved and
streamlining the section 214 process in
instances where consumers no longer
subscribe to legacy voice service. The
practical effect of these rules is to allow
the applicant to bypass the performance
testing requirements. The streamlined
approach benefits applicants by
reducing the economic burdens
resulting from performance testing
requirements, while protecting the
interests of all stakeholders, industry
and consumers. As discussed above,
this also ensures a customer experience
with the replacement service that is
substantially similar to the customer
experience with the service being
discontinued, without creating new
overly burdensome obligations.
177. Furthermore, the established
benchmarks for network performance,
service availability, and network
coverage protect small businesses that
depend on a network performing
properly and service to be available
when needed for everyday or emergency
use. Another rule that will decrease the
economic burden on small businesses is
the performance test exemption for
small businesses or carriers. Network
testing under the parameters established
in Appendix B could be more difficult
for smaller carriers and relatively
speaking economically burdensome,
given the more limited number of
customers. Therefore, the Order
provides smaller carriers more
flexibility in how they demonstrate
network performance under this prong
of the three-prong test. The Order’s
interoperability guidelines also reflect
our goal of ensuring that the technology
transitions broadly benefit consumers of
all types, including those who still
value certain applications and
functionalities associated with legacy
voice services.
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178. The Order’s communications
security criterion will ensure that
consumers receive comparably effective
protection from network security risks
as they do with legacy networks.
Limiting this criterion to the context of
streamlined processing and noting that
compliance will be examined flexibly
will reduce the impact on small
businesses.
179. The Order’s establishment of
clear guidance on education outreach
materials will help promote the
smoothest possible technology
transition, consumer choice, and the
fulfillment of consumer information
needs which effectively protects small
businesses that depend on an
applicant’s services by minimizing any
negative economic impact due to lack of
understanding about a technology
transition. The outreach plan’s
additional protections for vulnerable
consumers, as well as the required
hotline, further promotes these values.
180. By declining to provide any rural
LEC exemption, the Order also protects
small businesses that depend on a
network performing properly and
service to be available when needed for
everyday or emergency use. The Order
concludes that rural consumers or small
businesses, with often limited choice in
service providers, should equally
benefit from full consideration of the
adequacy of any replacement service to
ensure continued network performance
and service quality, as well as access to
critical applications, and
interoperability with valued services.
181. The Order on Reconsideration’s
revisions to the Commission’s rules to
make a competitive LEC’s application
for discontinuance deemed granted on
the effective date of any copper
retirement that made the discontinuance
unavoidable as long as the
discontinuance application is filed at
least 40 days prior to the retirement
effective date and the competitive LEC
certification that the copper retirement
was the basis for the discontinuance are
intended to address a gap in the
Commission’s rules that left competitive
LECs potentially without recourse to
avoid violating the discontinuance
rules. Permitting competitive LECs to
have more than four months to consider
the implications of the planned copper
retirement and weigh their alternative
reduces burdens the former rules did
not properly address. These revisions
reduce the economic impact on
competitive LECs and therefore burdens
on consumers by clarifying and
harmonizing the copper retirement and
discontinuance processes.
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182. Federal Rules that Might
Duplicate, Overlap, or Conflict with the
Rules. None.
183. Report to Congress. The
Commission will send a copy of this
Second Report and Order and Order on
Reconsideration, including the FRFA, in
a report to be sent to Congress pursuant
to the SBREFA. In addition, the
Commission will send a copy of this
Second Report and Order, Order on
Reconsideration, and Declaratory
Ruling, including this FRFA, to the
Chief Counsel for Advocacy of the SBA.
A copy of the Second Report and Order,
Order on Reconsideration, and
Declaratory Ruling, and the FRFA (or
summaries thereof) will also be
published in the Federal Register.
184. Ordering Clauses. Accordingly,
IT IS ORDERED that, pursuant to
sections 1–4, 201, 214, 251, and 303(r),
of the Communications Act of 1934, as
amended, 47 U.S.C. 151 through 154,
201, 214, 251, 303(r), this Second Report
and Order and Order on
Reconsideration ARE ADOPTED.
185. IT IS FURTHER ORDERED that
parts 51 and 63 of the Commission’s
rules ARE AMENDED as set forth in
Appendix A, and that any such rule
amendments that contain new or
modified information collection
requirements that require approval by
the Office of Management and Budget
under the Paperwork Reduction Act
SHALL BE EFFECTIVE after
announcement in the Federal Register
of Office of Management and Budget
approval of the rules, and on the
effective date announced therein.
186. IT IS FURTHER ORDERED that
this Second Report and Order and Order
on Reconsideration SHALL BE effective
October 12, 2016, except for 47 CFR
51.329(c), 63.19(a), 63.60, 63.71, 63.602,
and the outreach plan and consumer
education requirements set forth in this
Second Report and Order, which
contain information collection
requirements that have not been
approved by OMB. The Federal
Communications Commission will
publish a document in the Federal
Register announcing the effective date.
187. IT IS FURTHER ORDERED that
the Petition for Reconsideration filed by
TelePacific IS GRANTED IN PART AND
DENIED IN PART.
188. IT IS FURTHER ORDERED that
the Commission’s Consumer &
Governmental Affairs Bureau, Reference
Information Center, SHALL SEND a
copy of this Second Report and Order
and Order on Reconsideration to
Congress and the Government
Accountability Office pursuant to the
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Congressional Review Act, see 5 U.S.C.
801(a)(1)(A).
189. IT IS FURTHER ORDERED that
the Commission’s Consumer &
Governmental Affairs Bureau, Reference
Information Center, SHALL SEND a
copy of this Second Report and Order
and Order on Reconsideration,
including the Final Regulatory
Flexibility Analysis, to the Chief
Counsel for Advocacy of the Small
Business Administration.
List of Subjects
47 CFR Part 51
Communications common carriers,
Telecommunications.
47 CFR Part 63
Cable television, Communications
common carriers, Radio, Reporting and
recordkeeping requirements, Telegraph,
Telephone.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
Final Rules
For the reasons discussed in the
preamble, the Federal Communications
Commission amends 47 CFR parts 51
and 63 as follows:
PART 51—INTERCONNECTION
1. The authority citation for part 51
continues to read as follows:
■
Authority: 47 U.S.C. 151–55, 201–05, 207–
09, 218, 220, 225–27, 251–54, 256, 271,
303(r), 332, 1302.
2. Section 51.329 is amended by
revising paragraph (c)(1) to read as
follows:
■
§ 51.329 Notice of network changes:
Methods for providing notice.
*
*
*
*
*
(c) * * *
(1) The public notice or certification
must be labeled with one of the
following titles, as appropriate: ‘‘Public
Notice of Network Change Under Rule
51.329(a),’’ ‘‘Certification of Public
Notice of Network Change Under Rule
51.329(a),’’ ‘‘Short Term Public Notice
Under Rule 51.333(a),’’ ‘‘Certification of
Short Term Public Notice Under Rule
51.333(a),’’ ‘‘Public Notice of Copper
Retirement Under Rule 51.332,’’ or
‘‘Certification of Public Notice of
Copper Retirement Under Rule 51.332.’’
*
*
*
*
*
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PART 63—EXTENSION OF LINES, NEW
LINES, AND DISCONTINUANCE,
REDUCTION, OUTAGE AND
IMPAIRMENT OF SERVICE BY
COMMON CARRIERS; AND GRANTS
OF RECOGNIZED PRIVATE
OPERATING AGENCY STATUS
3. Section 63.19 is amended by
revising paragraph (a) introductory text
to read as follows:
■
§ 63.19 Special procedures for
discontinuances of international services.
(a) With the exception of those
international carriers described in
paragraphs (b) and (c) of this section,
any international carrier that seeks to
discontinue, reduce, or impair service,
including the retiring of international
facilities, dismantling or removing of
international trunk lines, shall be
subject to the following procedures in
lieu of those specified in §§ 63.61
through 63.602:
*
*
*
*
*
■ 4. Section 63.60 is amended by adding
paragraph (h) to read as follows:
§ 63.60
Definitions.
*
*
*
*
(h) The term ‘‘technology transition’’
means any change in service that would
result in the replacement of a wireline
TDM-based voice service with a service
using a different technology or medium
for transmission to the end user,
whether Internet Protocol (IP), wireless,
or another type; except that retirement
of copper, as defined in § 51.332(a) of
this chapter, that does not result in a
discontinuance, reduction, or
impairment of service requiring
Commission authorization pursuant to
this part shall not constitute a
‘‘technology transition’’ for purposes of
this part.
■ 5. Section 63.71 is amended by
revising paragraph (a) introductory text,
adding paragraphs (a)(6) and (7),
redesignating paragraph (f) as (j),
redesignating paragraphs (b) through (e)
as (c) through (f), adding new paragraph
(b), adding a sentence to the end of
newly redesignated paragraph (f), and
adding paragraphs (g), (h), and (i).
The revisions and additions read as
follows:
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*
§ 63.71 Procedures for discontinuance,
reduction or impairment of service by
domestic carriers.
*
*
*
*
*
(a) The carrier shall notify all affected
customers of the planned
discontinuance, reduction, or
impairment of service and shall notify
and submit a copy of its application to
the public utility commission and to the
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Governor of the State in which the
discontinuance, reduction, or
impairment of service is proposed; to
any federally-recognized Tribal Nations
with authority over the Tribal lands in
which the discontinuance, reduction, or
impairment of service is proposed; and
also to the Secretary of Defense, Attn.
Special Assistant for
Telecommunications, Pentagon,
Washington, DC 20301. Notice shall be
in writing to each affected customer
unless the Commission authorizes in
advance, for good cause shown, another
form of notice. For purposes of this
section, notice by email constitutes
notice in writing. Notice shall include
the following:
*
*
*
*
*
(6) For applications to discontinue,
reduce, or impair an existing retail
service as part of a technology
transition, as defined in § 63.60(h) of
this part, in order to be eligible for
automatic grant under paragraph (f) of
this section:
(i) A statement that any service
offered in place of the service being
discontinued, reduced, or impaired may
not provide line power; and
(ii) The information required by
§ 12.5(d)(1) of this chapter.
(7) For applications to discontinue,
reduce, or impair an existing retail
service as part of a technology
transition, as defined in § 63.60(h) of
this part, in order to be eligible for
automatic grant under paragraph (f) of
this section:
(i) A description of any security
responsibilities the customer will have
regarding the replacement service; and
(ii) A list of the steps the customer
may take to ensure safe use of the
replacement service.
(b) If a carrier uses email to provide
notice to affected customers, it must
comply with the following requirements
in addition to the requirements
generally applicable to the notice:
(1) The carrier must have previously
obtained express, verifiable, prior
approval from retail customers to send
notices via email regarding their service
in general, or planned discontinuance,
reduction, or impairment in particular;
(2) A carrier must ensure that the
subject line of the message clearly and
accurately identifies the subject matter
of the email; and
(3) Any email notice returned to the
carrier as undeliverable will not
constitute the provision of notice to the
customer.
*
*
*
*
*
(f) * * * An application to
discontinue, reduce, or impair an
existing retail service as part of a
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technology transition, as defined in
§ 63.60(h) of this part, may be
automatically granted only if the
applicant provides affected customers
with the notice required under
paragraphs (a)(6) and (7) of this section,
and the application contains the
showing or certification described in
§ 63.602(b) of this part.
(g) An application to discontinue,
reduce, or impair a service for which the
requesting carrier has had no customers
or reasonable requests for service during
the 180-day period immediately
preceding submission of the application
shall be automatically granted on the
31st day after its filing with the
Commission without any Commission
notification to the applicant, unless the
Commission has notified the applicant
that the grant will not be automatically
effective.
(h) An application to discontinue,
reduce, or impair an existing retail
service as part of a technology
transition, as defined in § 63.60(h) of
this part, shall contain the information
required by § 63.602 of this part. The
certification or showing described in
§ 63.602(b) of this part is only required
if the applicant seeks eligibility for
automatic grant under paragraph (f) of
this section.
(i) An application to discontinue,
reduce, or impair a service filed by a
competitive local exchange carrier in
response to a copper retirement notice
filed pursuant to § 51.332 of this chapter
shall be automatically granted on the
effective date of the copper retirement;
provided that:
(1) The competitive local exchange
carrier submits the application to the
Commission for filing at least 40 days
prior to the copper retirement effective
date; and
(2) The application includes a
certification, executed by an officer or
other authorized representative of the
applicant and meeting the requirements
of § 1.16 of this chapter, that the copper
retirement is the basis for the
application.
*
*
*
*
*
■ 6. Section 63.602 is added to read as
follows:
§ 63.602 Additional contents of
applications to discontinue, reduce, or
impair an existing retail service as part of
a technology transition.
(a) The application shall include:
(1) The contents specified in § 63.505
of this part;
(2) A statement identifying the
application as involving a technology
transition, as defined in § 63.60(h) of
this part;
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(3) Information regarding the price of
the service for which discontinuance
authority is sought and the price of the
proposed replacement service; and
(4) A certification, executed by an
officer or other authorized
representative of the applicant and
meeting the requirements of § 1.16 of
this chapter, that the information
required by this section is true and
accurate.
(b) In order to be eligible for
automatic grant under § 63.71(f) of this
part, an applicant must demonstrate that
a service(s) identified pursuant to
§ 63.505(k)(2) of this part is an adequate
replacement for the voice service
identified pursuant to § 63.505(k)(1) of
this part by either certifying or showing,
based on the totality of the
circumstances, that one or more
replacement service(s) satisfies all of the
following criteria:
(1) Offers substantially similar levels
of network infrastructure and service
quality as the service being
discontinued;
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Note to paragraph (b)(1): For purposes of
this section, ‘‘substantially similar’’ means
that the network operates at a sufficient level
such that it will allow the network platform
to ensure adequate service quality for
interactive and highly-interactive
applications or services, in particular voice
service quality, and support applications and
functionalities that run on those services.
(2)(i) Complies with regulations
regarding the availability and
functionality of 911 service for
consumers and public safety answering
points (PSAPs), specifically §§ 1.7001
through .7002, 9.5, 12.4, 12.5, 20.18,
20.3, 64.3001 of this chapter;
(ii) Offers comparably effective
protection from network security risks
as the service being discontinued; and
(iii) Complies with regulations
governing accessibility, usability, and
compatibility requirements for:
(A) Telecommunications services and
functionalities;
(B) Voicemail and interactive menu
functionalities; and
(C) Advanced communications
services, specifically 47 CFR 6.1 through
6.11, 7.1 through 7.11, 14.1 through
14.21, 14.60 through 14.61; and
(3) Offers interoperability with key
applications and functionalities.
[FR Doc. 2016–20215 Filed 9–9–16; 8:45 am]
BILLING CODE 6712–01–P
VerDate Sep<11>2014
21:01 Sep 09, 2016
FEDERAL COMMUNICATIONS
COMMISSION
[MB Docket No. 16–68; RM–11762 DA 16–
894]
Radio Broadcasting Services;
Maryville, Missouri
Federal Communications
Commission.
ACTION: Final rule.
[Amended]
2. Section 73.202(b), the Table of FM
Allotments under Missouri, is amended
by adding Maryville, Channel 285C3.
■
[FR Doc. 2016–21763 Filed 9–9–16; 8:45 am]
BILLING CODE 6712–01–P
AGENCY:
At the request of Michael
Myers, the Audio Division amends the
FM Table of Allotments, by allotting
Channel 285C3 at Maryville, Missouri,
as the community’s forth local service.
A staff engineering analysis indicates
Channel 285C3 can be allotted to
Maryville consistent with the minimum
distance separation requirements of the
Commission’s rules without a site
restriction. The reference coordinates
are 40–22–33 NL and 94–51–25 WL.
DATES: Effective September 19, 2016.
FOR FURTHER INFORMATION CONTACT:
Adrienne Y. Denysyk, Media Bureau,
(202) 418–2700.
SUPPLEMENTARY INFORMATION: This is a
synopsis of the Commission’s Report
and Order, MB Docket No. 16–68,
adopted August 4, 2016, and released
August 5, 2016. The full text of this
Commission decision is available for
inspection and copying during normal
business hours in the FCC’s Reference
Information Center at Portals II, CY–
A257, 445 12th Street SW., Washington,
DC 20554. The full text is also available
online at https://apps.fcc.gov/ecfs/. This
document does not contain information
collection requirements subject to the
Paperwork Reduction Act of 1995,
Public Law 104–13. The Commission
will send a copy of the Report and
Order in a report to be sent to Congress
and the Government Accountability
Office pursuant to the Congressional
Review Act, see 5 U.S.C. 801(a)(1)(A).
SUMMARY:
List of Subjects in 47 CFR Part 73
Radio, Radio broadcasting.
Federal Communications Commission.
Nazifa Sawez,
Assistant Chief, Audio Division, Media
Bureau.
For the reasons discussed in the
preamble, the Federal Communications
Commission amends 47 CFR part 73 as
follows:
PART 73—RADIO BROADCAST
SERVICES
1. The authority citation for part 73
continues to read as follows:
■
Jkt 238001
Authority: 47 U.S.C. 154, 303, 334, 336 and
339.
§ 73.202
47 CFR Part 73
62657
PO 00000
Frm 00055
Fmt 4700
Sfmt 4700
DEPARTMENT OF THE INTERIOR
Fish and Wildlife Service
50 CFR Part 17
[Docket No. FWS–HQ–ES–2016–0097;
4500030115]
RIN 1018–BB69
Endangered and Threatened Wildlife
and Plants; Taxonomic Correction for
the Grand Cayman Ground Iguana
Fish and Wildlife Service,
Interior.
ACTION: Direct final rule.
AGENCY:
We, the U.S. Fish and
Wildlife Service (Service), announce the
revised taxonomy of Cyclura nubila
lewisi (Grand Cayman ground iguana)
under the Endangered Species Act of
1973, as amended (Act). We are revising
the List of Endangered and Threatened
Wildlife to reflect the current
scientifically accepted taxonomy and
nomenclature of this species: Cyclura
lewisi (Grand Cayman blue iguana). This
action that does not alter the regulatory
protections afforded to this species.
DATES: This rule will become effective
on November 14, 2016, without further
action, unless we receive significant
scientific information that provides
strong justifications as to why this rule
should not be adopted or why it should
be changed on or before October 12,
2016. If significant scientific
information is received regarding why
this rule should not be adopted or
changed, we will publish a timely
withdrawal of the rule in the Federal
Register.
ADDRESSES: You may submit comments
by one of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. In the Search box,
enter FWS–HQ–ES–2016–0097, which
is the docket number for this
rulemaking. Then click on the Search
button. You may submit a comment by
clicking on ‘‘Comment Now!’’
• U.S. mail or hand-delivery: Public
Comments Processing, Attn: FWS–HQ–
ES–2016–0097; Division of Policy,
Performance, and Management
Programs, U.S. Fish and Wildlife
SUMMARY:
E:\FR\FM\12SER1.SGM
12SER1
Agencies
[Federal Register Volume 81, Number 176 (Monday, September 12, 2016)]
[Rules and Regulations]
[Pages 62632-62657]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-20215]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 51 and 63
[GN Docket No. 13-5, RM-11358; FCC 16-90]
Technology Transitions, Policies and Rules Governing Retirement
of Copper Loops by Incumbent Local Exchange Carriers
AGENCY: Federal Communications Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: In this document, the Federal Communications Commission
(Commission) initiated this rulemaking in August 2015 to help guide and
accelerate the transitions from networks based on TDM circuit-switched
voice services running on copper loops to all-IP multi-media networks
using copper, co-axial cable, wireless, and fiber as physical
infrastructure. In this Second Report and Order and Order on
Reconsideration, we take several actions aimed at stripping away
anachronistic rules while ensuring that competition continues to thrive
and consumers are protected during technology transitions.
DATES: Effective upon approval by the Office of Management and Budget.
The Commission will publish a document in the Federal Register
announcing the effective date(s).
FOR FURTHER INFORMATION CONTACT: Megan Capasso, Wireline Competition
Bureau, Competition Policy Division, (202) 418-1151, or send an email
to Megan.Capasso@fcc.gov. For additional information concerning the
Paperwork Reduction Act information collection requirements contained
in this document, send an email to PRA@fcc.gov or contact Nicole Ongele
at (202) 418-2991.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Second
Report and Order and Order on Reconsideration in GN Docket No. 13-5,
RM-11358, FCC 16-90, adopted July 14, 2016 and released July 15, 2016.
The full text of this document is available for public inspection
during regular business hours in the FCC Reference Information Center,
Portals II, 445 12th Street SW., Room CY-A257, Washington, DC 20554. It
is available on the Commission's Web site at https://apps.fcc.gov/edocs_public/attachmatch/FCC-16-90A1.pdf. The Commission will send a
copy of this Second Report and Order and Order on Reconsideration in a
report to be sent to Congress and the Government Accountability Office
pursuant to the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).
Synopsis
1. In the Second Report and Order, we update our review and notice
procedures governing the filing and processing of applications pursuant
to section 214 of the Communications Act of 1934, as amended (the Act)
to discontinue, reduce, or impair service (the section 214
discontinuance process). Section 214 of the Act and the Commission's
implementing rules generally require telecommunications carriers and
interconnected Voice over Internet Protocol (VoIP) providers to obtain
Commission authority to discontinue interstate or foreign service to a
community or a party of a community. The Commission relieved Commercial
Mobile Radio Service (CMRS) providers of this obligation in 1994. The
VoIP Discontinuance Order moots any need to find a separate basis of
authority over VoIP providers in connection with this Order.
2. All applicants seeking to discontinue a service are currently
required to file a section 214 application in accordance with rules
governing notice, opportunity for comment, review, and processing
requirements. Commenters have 15 days to file objections if the
applicant is a non-dominant carrier and 30 days to file if the
applicant is a dominant carrier. The application is automatically
granted on the 31st day after filing for non-dominant carriers and on
the 60th day
[[Page 62633]]
after filing for dominant carriers unless the Wireline Competition
Bureau (Bureau) has notified the applicant that the grant will not be
automatically effective. The Bureau has considerable discretion in
determining whether to grant such authority based on the application,
responsive comments, and other filings. The Bureau will normally
authorize the discontinuance ``unless it is shown that customers would
be unable to receive service or a reasonable substitute from another
carrier or that the public convenience or necessity is otherwise
adversely affected.''
3. In evaluating whether the discontinuance will harm the public
interest, the Commission has employed a five factor balancing test to
analyze: (1) The financial impact on the common carrier of continuing
to provide the service; (2) the need for the service in general; (3)
the need for the particular facilities in question; (4) increased
charges for alternative services; and (5) the existence, availability,
and adequacy of alternatives. We find that the existence, availability,
and adequacy of alternatives, or the adequate replacement factor, has
heightened importance in the context of technology transitions.
Consistent with the proposals in the Emerging Wireline Further Notice
of Proposed Rulemaking (FNPRM), 80 FR 57768-01, we now adopt an updated
approach for preparing, reviewing, and evaluating section 214
discontinuance applications that relate to technology transitions
(technology transition discontinuance applications).
4. The Framework for the Adequate Replacement Test. We conclude
that the public interest requires that applications seeking to
discontinue a legacy time-division multiplexed (TDM)-based voice
service as part of a transition to a new technology, whether IP,
wireless, or another type, indicate that a technology transition is
implicated. The requirements we articulate for eligibility for
automatic grant of discontinuance applications involving a technology
transition apply only to legacy voice services. Other services to which
section 214(a) discontinuance obligations apply and voice services
subject to section 214(a) being discontinued in non-technology
transitions circumstances will continue to be subject to our pre-
existing discontinuance process, which provides the public an
opportunity to comment and to which our traditional five-factor
balancing test applies. We decline to apply the adequate replacement
test to legacy data services. For any other domestic service for which
a discontinuance application is filed, section 63.71(e) of our rules
(redesignated as section 63.71(f) herein) shall continue to govern
automatic grant procedures. Unlike traditional applicants, technology
transition discontinuance applicants seeking streamlined treatment will
be required to submit with their application either a certification or
a showing as to whether an adequate replacement exists in the service
area. Applications either (i) certifying or (ii) demonstrating
successfully through their showing that an adequate replacement exists
will be eligible for automatic grant pursuant to section 63.71(d) of
the Commission's rules as long as the existing requirements for
automatic grant are satisfied. We stress that attempting to satisfy the
adequate replacement test is entirely voluntary for an applicant. Voice
technology transition discontinuance applicants that decline to pursue
this path are not eligible for streamlined treatment and will have
their applications evaluated on a non-streamlined basis under the
traditional five factor test. Moreover, the showing made regarding an
adequate alternative under the five factor test does not require the
network performance testing and other specific showings required under
the adequate replacement test for streamlined treatment.
5. We further conclude that an applicant for a technology
transition discontinuance may demonstrate that a service is an adequate
replacement for a legacy voice service by certifying or showing that
one or more replacement service(s) offers all of the following: (i)
Substantially similar levels of network infrastructure and service
quality as the applicant service; (ii) compliance with existing federal
and/or industry standards required to ensure that critical applications
such as 911, network security, and applications for individuals with
disabilities remain available; and (iii) interoperability and
compatibility with an enumerated list of applications and
functionalities determined to be key to consumers and competitors. One
replacement service must satisfy all the criteria to retain eligibility
for automatic grant.
6. Technology transition applicants can either demonstrate
compliance with these objective criteria or make a demonstration that,
despite not being able to meet the criteria, the totality of the
circumstances demonstrates that an adequate replacement nonetheless
exists. If an applicant cannot certify or make that showing, or
declines to pursue the voluntary path of streamlined treatment, it must
include in its application an explanation of how its proposed
discontinuance will not harm the public interest, with specific
reference to the five factors the Commission traditionally considers.
The Bureau will then weigh that information as part of the traditional
multi-factor evaluation, placing particular scrutiny on the adequate
replacement factor under the newly-enhanced test. Only meaningful,
factual objections regarding the reliability of certifications provided
will be persuasive. Any entity or individual may object to the
certification or showing, and the Commission will consider the
objection and determine if the applicant needs to provide additional
support.
7. In adopting objective, quantifiable standards for the adequate
replacement test, we seek to minimize uncertainty or confusion that
could slow or even discourage technology transitions. Moreover, we do
not want to stifle the new and innovative ways that a replacement
service could benefit customers. For that reason, we announce a test
that sets clear, achievable benchmarks but leaves flexibility,
recognizing that a shift from a TDM network to a new technology will
never be a purely apples-to-apples comparison.
8. The approach we adopt today places a new prominence on the
adequate replacement analysis. This new emphasis does not, however,
displace the Commission's traditional five-factor test outside the
context of technology transition discontinuance applications seeking
streamlined treatment. The five factor test is aimed at promoting--and
where necessary, balancing--the four missions of our agency, namely to
protect consumers, promote competition, ensure universal access, and
strengthen public safety. Four of the factors--(1) the financial impact
on the common carrier of continuing to provide service, (2) the need
for the service in general, (3) the need for the particular facilities
in question, and (4) increased charges for alternative services--offer
a traditional balancing of the financial and competitive needs of
industry against the values of consumer affordability and expectations.
9. The adequate replacement factor, in contrast, aims to balance
all four missions as a means of ensuring all Americans benefit from
these exciting new technologies. This has always required a deeper
analysis, but that need is particularly acute in the context of
discontinuances involving legacy voice services related to technology
transitions. We disagree that the action we take today is inconsistent
with the Commission's recent revisions to the universal service program
rules,
[[Page 62634]]
particularly in the Connect America Fund proceeding. We made it clear
in the December 2014 Connect America Order that even though we were
forbearing ``from enforcing a federal high-cost requirement that price
cap carriers offer voice telephony service throughout their service
areas pursuant to section 214(e)(1)(A) in three types of geographic
areas,'' those carriers are still subject to section 214(a)'s mandate
regarding the need for Commission authorization before discontinuing a
service. We conclude, however, that certain principles--such as access
to critical applications such as 911--are not subject to balancing and
must remain available and fully functional as part of any transition.
The streamlined, technology neutral framework that we adopt will help
to protect those principles.
10. Limited to the Technology Transition Context. We conclude that
the adequate replacement test we discuss here should only apply to any
application involving a technology transition from TDM to IP or
wireline to wireless in which the applicant intends to discontinue
completely customers' access to the legacy voice service. The
components of the test are specifically tailored to measure
considerations relevant to a technology transition that are not as
prominent in other contexts. For example, requiring minor
discontinuances of particular applications or functionalities (such as
operator-assisted functionalities) associated with a service to
demonstrate that an adequate replacement is available is not necessary.
We conclude that limiting the test to the context of technology
transitions accomplishes our regulatory goals in an appropriately
narrow manner.
11. No Presumptions or Exclusions Regarding Specific Technologies.
We decline to presume that particular technologies, by their nature,
represent an adequate replacement for legacy voice services in all
instances, because our public interest analysis demands that applicants
provide objective evidence showing a replacement service will provide
quality service and access to needed applications and functionalities.
IP-based and other new services should demonstrate that they meet
consumers' and providers' fundamental needs through satisfaction of
performance standards, compliance with Commission rules, and harmony
with key legacy functionalities and applications before we grant
permission to remove existing voice services from the marketplace. It
is critical that we retain the ability to examine each discontinuance
application given the potential for variability in different
implementations of the same technology. The same technology could
nonetheless utilize different features, be produced by different
vendors with different methodologies, and use different quality
measurement techniques, any of which could result in varied service
quality and thus lead to potential interoperability issues. We will
allow testing data from one area to be used to support future
discontinuance applications in another area, conditioned on
certifications that the network is built according to the same detailed
design plan as the network supporting the service under the prior
discontinuance. We believe the current discontinuance process, subject
to the changes adopted today, provides the appropriate balance of
allowing for public comment and objections while retaining the
opportunity for speedy and effective resolutions.
12. We retain largely the same standards for automatic grant that
apply under the current regime for the special context of technology
transitions. However, we allow a more streamlined approach for
discontinuances involving services that are substantially similar to
those for which a section 214 discontinuance has previously been
approved. We also take action to streamline our section 214 process in
instances where consumers no longer subscribe to legacy voice services.
Although our actions today focus primarily on technology transitions,
we recognize that the market is constantly evolving even outside the
context of these crucial transitions. For that reason, we allow a
section 214 discontinuance application be eligible for automatic grant
without any further showing if the applicant can demonstrate that the
service has zero customers in the relevant service area and no requests
for service in the last six months.
13. No Arbitrary Timelines. We do not establish timelines for
reviewing applications that are not eligible for automatic grant,
because the public interest demands that we provide appropriate
scrutiny and careful review to discontinuance applications related to
technology transitions given their novelty and complexity, and we
cannot guarantee at this time how long that process will take. An
application will remain under consideration for automatic grant unless:
(i) The Commission receives comments setting forth significant,
meaningful, evidence-based objections or (ii) after reviewing the
application, Commission staff has concerns about the impact of the
planned discontinuance on the public convenience and necessity. Should
such an objection arise, we will review the applicant's and objector's
showings as expeditiously as possible. We do intend to rely on the
efficiencies of precedent and data provided regarding similar
transitions when factually or legally similar disputes arise. Finally,
should it be determined that the existing process is resulting in
unacceptable delay or inefficiency, we will revisit our decision not to
establish timeframes for acting on section 214 applications.
14. We also decline to adopt a hard deadline for when a Public
Notice should be released for a technology transition discontinuance
application following its submission. Staff review applications for
completeness, accuracy, and fulfillment of all predicate requirements,
including providing notice to affected customers, before issuing the
Public Notice. Imposing a hard deadline could result in issuance of
public notice of defective applications, and commenters have not
identified a pattern of undue delay. Based on actual experience with
the streamlined process we adopt today, we can revisit this issue at a
future date if necessary. Moreover, to facilitate public input on these
types of applications, the Bureau will not only continue to list such
notices prominently, but will also identify them specifically as
applications related to technology transitions on the Commission's Web
site.
15. An Objective Factor-Based Test Is Preferable To A Subjective
Case-by-Case Approach for Technology Transition Discontinuances. The
three-pronged test tied to specific benchmarks will allow industry to
establish reasonable expectations about the investments necessary to
satisfy the test while also protecting consumers. Notably, through the
detailed articulation that we provide today, the adequate replacement
standard will be substantially clearer than it has been to this point.
16. Successful Prior Certifications Will Streamline Future
Applications. We will allow a repeat applicant for a 214 discontinuance
application in the technology transition context to rely on its
successful certification of compliance with all three prongs of the
adequate replacement test in a previously approved application
involving a substantially similar service. A substantially similar
service is one offered by the same applicant relying on the same
technology and utilizing a comparable network infrastructure. The
practical effect of this rule is to allow the applicant to bypass the
performance testing requirements described below.
[[Page 62635]]
17. Commenters will have the opportunity to rebut an applicant's
planned reliance on a previous application if they can offer
substantial evidence that the technology or network infrastructure are
not in fact substantially similar to the service subject to the
certifications in the previous application or the certifications have
been proven unreliable, based on significant consumer complaints or new
independent data.
18. Treating First and Third Party Services Equally. We conclude
that both first and third party services should be eligible as
potential adequate replacement services. Third party services have
always been eligible for consideration under the 214 discontinuance
process as potential adequate replacements. The question is whether an
adequate replacement exists in the service area, not who provides the
service that provides that adequate replacement.
19. Applicants seeking to discontinue a service have the burden of
demonstrating that the discontinuance will not harm the public
interest. Applicants relying on a third party service will be allowed
to make a prima facie showing based on publicly available information
as to whether the third party service meets our test as an adequate
replacement. We will take into account an applicant's faultless
inability to access necessary data and information from a third party
when reviewing any application that relies on the existence of third
party services to meet the adequate replacement test. Any commenter
opposing grant of a section 214 application relying on a third party
service must rebut the prima facie showing made by the applicant.
Should the objecting commenter raise legitimate concerns, we will
remove the application from consideration for automatic grant. In
attempting to rebut such a showing, members of the public who use the
third party service can agree to participate in tests necessary to
measure network performance, as required under the criteria.
20. Requiring A Single Service to Satisfy All Prongs. To ensure
that consumers receive the integrated service experience they need and
deserve, we require that a single service (whether first- or third-
party) satisfy all three prongs of the adequate replacement test in
order to be eligible for automatic grant.
21. Network Infrastructure and Service Quality. To satisfy the
first prong of the adequate replacement test, and thereby be eligible
for automatic grant, an applicant must demonstrate that at least one
service provides: Substantially similar network performance as the
service being discontinued; substantially similar service availability
as the service being discontinued; and coverage to the entire affected
geographic service area.
22. Customers rightfully expect that any adequate replacement for a
wireline legacy voice service will be available in the same coverage
area, allow customers to make and receive high quality voice calls
consistently, and support the applications and functionalities on which
they rely. However, we recognize that a comparison between a legacy
voice service and its potential replacement is not an apples-to-apples
comparison. We thus provide applicants the flexibility either to
demonstrate compliance with all of the benchmarks, or to provide
evidence that demonstrates that, despite falling short of certain
specified benchmarks, the network providing the replacement service
nonetheless provides substantially similar performance and availability
when considering the totality of the circumstances. A replacement
network's performance will be evaluated against objective benchmarks,
but falling short of any single metric will not automatically
disqualify it from being considered adequate. The actual performance
numbers will be evaluated in a holistic manner to determine the overall
network performance, enabling the carrier to show that the totality of
circumstances demonstrate adequate performance. Legacy data services
will not be subject to the adequate replacement test and associated
streamlined processing that we announce today. Rather, those services
will be evaluated under the traditional process, and the Commission
will continue to closely scrutinize such applications in determining
whether the public interest would be harmed by the discontinuance.
23. We adopt benchmarks related to various metrics that, if
satisfied, would demonstrate that a service is performing adequately
enough to serve as a replacement for a legacy TDM service. There are
two ways of demonstrating adequacy: (i) Through performance testing
that demonstrates satisfaction of each of the benchmarks, or (ii) a
demonstration, based on the totality of the circumstances, the network
still provides substantially similar performance and availability. As
an example, an applicant might fall just short of our data loss
benchmark but nonetheless make a showing that the totality of the
circumstances demonstrates adequate performance. That showing would
presumably include test data demonstrating achievement of the remaining
benchmarks as well as an explanation for why the network fell short of
the data loss benchmark and any planned improvements to the network
which would allow for enhanced performance in the future. We interpret
``substantially similar'' in this context to mean that the network
operates at a sufficient level with respect to the metrics identified
below, such that the network platform will ensure adequate service
quality for interactive and highly-interactive applications or
services, in particular voice service quality, and support applications
and functionalities that run on those services. Under either approach,
the applicant initially provides the results of network testing, as
well as outage and repair reporting, that demonstrate achievement of
the benchmarks, although it may rely in subsequent applications on
testing data from a previously approved discontinuance application.
24. Network Performance. We find that there are two essential
metrics used to determine whether a particular data transmission
network is an adequate replacement for a legacy wireline voice service:
Latency and data loss. Failure to satisfy a single metric is not
disqualifying. An applicant may either demonstrate achievement of both
benchmarks, thus presumptively showing adequate performance, or
demonstrate that the totality of the circumstances, including the voice
service availability and network coverage criteria, demonstrates
adequate network performance. By ``presumptive'' we refer to the fact
the Commission may seek additional proof beyond certification.
25. We rely on industry technical standards and our approaches in
other proceedings to adopt the benchmarks we will use in our section
214 process. The performance benchmarks are measured in accordance with
our Technical Appendix. We define the latency benchmark as 100
milliseconds or less for 95% of all peak period round trip
measurements, a benchmark consistent with previous Commission decisions
in the universal service context, informed by ITU-T standards, and
comparable to demonstrated performance under the Commission's Measuring
Broadband America program. This metric also provides for a latency
performance that will allow the applicant's network to perform its
portion of an end-to-end voice call. We define the data loss metric as
less than
[[Page 62636]]
or equal to 1 percent for packet based networks.
26. Latency and data loss are the terms used for the two essential
metrics described above for measuring network performance as a means of
comparison to a legacy wireline voice service. We plan to apply the
same metrics and benchmarks to all replacements, whether fixed or
mobile, wireline or wireless, terrestrial or satellite. These metrics
reflect the type of performance that should be expected of a
sophisticated packet-based network infrastructure that can carry one or
more applications including voice calls, fax, security/health alerts,
gaming, video streaming and video teleconferencing. In order to be
eligible for automatic grant, an applicant must be prepared to
demonstrate the replacement service will perform as effectively as the
legacy voice service.
27. Latency. In order for a replacement service to meet this aspect
of the network performance prong and be eligible for streamlined
treatment, latency must be limited to 100 milliseconds or less. Latency
measures the time it takes for a data packet to travel from one point
to another in a network, and is a significant factor in analyzing a
network's performance. Measuring Broadband America data shows that
wireline broadband providers meet this requirement. The Commission has
measured latency as the round-trip time from the consumer's home to the
closest designated speed measurement server within the provider's
network and back.
28. AT&T asserts that the 100 millisecond roundtrip benchmark
cannot be applied to the network architecture of certain non-packet
based wireless services and that, as a result, the Commission should
``adopt[ ] a threshold of less than 200 milliseconds measured mouth-to-
ear.'' The 100 millisecond roundtrip standard is consistent with the
CAF Phase II Service Obligations Order, where the Wireline Competition
Bureau explained that it designed the 100 millisecond roundtrip latency
standard to ensure that consumers ultimately achieve 200 milliseconds
mouth-to-ear latency. That being said, the totality of the
circumstances approach allows applicants to provide objective evidence
to support their showing that the replacement service would offer
substantially similar network performance and service availability,
even if that evidence is not identical to the exact metrics that we
identify. Our metrics, benchmarks, and methodologies measure packet-
based technologies, which we expect will most frequently be associated
with next generation technologies. We also note several examples of
packet mobile networks. Specifically, because the 100 millisecond
roundtrip standard is designed to ensure that consumers achieve 200
millisecond mouth-to-ear latency, objective evidence that a non-packet
based replacement service meets the underlying 200 millisecond mouth-
to-ear standard would be compelling as a component of a totality of the
circumstances showing.
29. Data Loss. In order for a replacement service to meet this
aspect of the network performance prong, data loss should be less than
1 percent for packet-based networks. Data loss exceeding 1 percent for
packet-based networks would cause performance issues that warrant
further examination. Applicants would need to demonstrate data loss is
lower than this benchmark in order to have the opportunity to be
eligible for automatic grant. Data loss is often referred to as the IP
Packet Loss Ratio (IPLR) in IP networks. This metric measures the ratio
of total lost IP packet outcomes to total transmitted IP packets in the
environment under review. Consecutive packet loss is of particular
concern for certain time-sensitive applications, such as voice and
video.
30. We have chosen a packet loss rate of less than 1 percent
because it will allow for successful quality voice calls and other
highly interactive applications. We further find that this data loss
benchmark is appropriate to ensure successful transmission of voice and
video communications.
31. Although the network infrastructure and the services that run
over the network are distinct, network performance affects the service
quality being delivered to customers and thus should be measured. These
measurements are an objective tool for determining when an application
will be eligible for automatic grant; if the applicant cannot
demonstrate that, it is appropriate to engage in further examination to
ensure the services provided over newer technologies are adequate
replacements for legacy voice services.
32. We recognize that carriers may incur costs in order to
demonstrate they meet these benchmarks, and have taken steps to limit
the burden of making these demonstrations in the section 214
discontinuance process. We allow successful testing results to be used
as support for future applications involving the same applicant
offering a service on a substantially similar network. Moreover,
carriers are not required to meet these standards to file a section 214
discontinuance; if a carrier does not wish to present such information,
its section 214 application will not be eligible for automatic grant,
but rather will be subject to the traditional review process. And
finally, we exempt small providers from the requirement to submit
testing results in order to be eligible for automatic grant.
33. Wireless--Packet Networks. We intend to rely on the same
metrics and benchmarks, applicable to both wireline and wireless
networks, when we examine whether a mobile or fixed wireless network
can qualify as an adequate replacement. Appendix B allows for
generalized network testing standards which are applicable to both
wireline and wireless networks.
34. Testing Methodology and Parameters. We find testing is
necessary, at least initially, to ensure that applicants actually meet
the benchmarks we have established to be eligible for automatic grant.
Established testing parameters will ensure that the Commission analyzes
similar data sets from applicants in the technology transitions.
Although we expect that the Order and Technical Appendix will encompass
all of the information that applicants need, we delegate authority to
the Office of Engineering and Technology, working in consultation with
the Wireline Competition Bureau and the Wireless Telecommunications
Bureau, to issue more specific testing requirements, as necessary.
35. In order to comply with the testing parameters listed below,
applicants filing their first technology transition discontinuance
application will need to begin testing at least 30 days prior to filing
that application. The 30-day test period is intended to ensure that the
network is in a stable state and to allow for long-term projection of
network infrastructure performance. Shorter periods would not account
for variation in patterns and usage and could allow the applicant time
to traffic engineer their network so that the chosen test customers
performed better for a short period of time.
36. To demonstrate that replacement services will have adequate
network performance and thereby remain eligible for streamlined
treatment for a technology transition discontinuance, the provider must
perform the following actions, which are detailed in Appendix B to this
Order:
Conduct 30 days of performance testing. This timeframe
allows for: (1) Testing of weekday and weekend periods with sufficient
repetition to ensure a single outlying week was not chosen, and (2)
monthly variation in network usage for individuals paying
[[Page 62637]]
bills, 30 day/monthly data caps and enterprise end of month processing.
Use a randomly selected sample group of a total of 50
residential and 50 enterprise customer locations per potential
replacement service for testing, to ensure a representative sample. We
recognize that fully random selection may not be possible because
customer consent is required and other factors may impact the selection
process. If the area where service is proposed to be discontinued is
very large, for example covering several states or Tribal lands, more
than 100,000 customers, or containing several legacy Local Access
Target Areas, then several separate sample sets of 30-50 consumer
locations would be required per state, region, or geographically-
referenced area.
Report results to the Commission.
Host a Web site or Web sites where all test data, results,
test plan and all associated documentation that is not subject to a
confidentiality request or confidential pursuant to section 0.441 et
seq. of our rules are available publicly. We would generally consider
the detailed design document a document that warrants confidential
treatment.
37. While we provide some flexibility in the testing parameters an
applicant will use, the Commission will include in its evaluation of
the discontinuance application whether the testing conditions used were
appropriate to measure performance. Thus, in addition to testing
results, the Commission will consider the testing parameters as a
factor in determining whether it needs to remove the application from
streamlined processing. If the testing parameters raise sufficient
concerns such that the Commission removes the application from
streamlined processing, the Commission will then consider those testing
parameters in any totality of the circumstances analysis of the
adequacy of the replacement network.
38. Small Business Exemption from the Network Performance Testing
Requirements. We emphasize that no carrier must conduct testing or
otherwise meet the criteria we adopt today. Compliance with these
criteria merely enables potential automatic grant of a discontinuance
application. The adequate replacement factor is merely one part of a
multifactor balancing test, and the benchmarks associated with the
criteria provide guidance to carriers and a path toward automatic grant
of their technology transitions discontinuance applications. We also
reemphasize that once a carrier completes testing of a next-generation
service and successfully obtains automatic grant, it need not conduct
testing again if it files an application involving a substantially
similar replacement service.
39. However, we provide smaller carriers more flexibility in how
they demonstrate network performance under this prong of the three-
pronged test. We do not extend this exemption to any other components
of the adequate replacement test we adopt today, including both of the
other aspects of the network infrastructure prong (service quality and
network coverage) or the other two prongs of the test. We conclude that
carriers with 100,000 or fewer subscriber lines, aggregated across all
affiliates, may remain eligible for automatic grant without compliance
with the specific testing requirements of the network performance
criterion we articulate today. This exemption from complying with the
specific testing parameters announced herein does not apply to any
rate-of-return carrier that is affiliated with a price cap carrier. We
encourage them, however, to share with the Commission whatever
information they deem probative of their network performance.
40. Service Availability. In order to meet this aspect of the
network performance prong and be eligible for automatic grant, an
applicant must demonstrate service availability of 99.99 percent. The
test we adopt today consists of a standard formula traditionally used
by industry to measure telephone service availability for which we have
defined the variables to ensure that all discontinuing carriers are
measuring the same information. The replacement service's availability
will be calculated using data regarding customer trouble reports, the
average repair interval in responding to those reports, the number of
lines in the service area, and the duration of the observation period
to reach a representative measurement of a ``four 9s'' benchmark used
to measure service availability. We conclude these variables will
provide the best measure of customers' ability to access their
provider's network.
41. The ITU defines ``reliability'' as ``[t]he probability that an
item can perform a required function under stated conditions for a
given time interval.'' It defines ``availability'' as ``[a]vailability
of an item to be in a state to perform a required function at a given
instant of time or at any instant of time within a given time interval,
assuming that the external resources, if required, are provided.''
42. We conclude that a 99.99 percent service availability standard,
calculated according to the formula and parameters established herein,
is a reasonable approach to ensure that a replacement service
presumptively provides substantially similar service as the service
being discontinued. We find that a so-called ``five 9s'' (i.e., 99.999
percent availability) standard, which would allow a subscriber's
service to have, on average, approximately 5 minutes and 15 seconds of
downtime per year, is too high a threshold. It would impose a higher
standard than currently applies to TDM-based service. We also find that
a 98 percent availability standard, which would allow, on average,
approximately 7 days, 7 hours, and 12 minutes of downtime per year, is
too low a benchmark for an applicant to be eligible for automatic
grant, because it would allow more downtime than consumers should
reasonably expect. (This conclusion does not prejudge how we might view
such an application in the context of a holistic review.) The
difference between a 99.999 percent and a 98 percent reliability
standard--less than 2 percent--translates to more than seven additional
days' worth of service downtime per year, an amount that we judge would
be quite meaningful to consumers. We conclude that if a replacement
service faces that much service downtime, the section 214 application
should not eligible for automatic grant.
43. For carriers to demonstrate satisfaction of the 99.99 percent
standard, we establish the following formula: Availability = 1-[(Number
of Customer Trouble Reports) x (Average Repair Interval)/(Number of
Lines (prorated)) x (Observation Period Duration)]. For the purpose of
this calculation, the following definitions apply:
A ``customer trouble report'' is any report regarding
trouble with service made by a customer to a carrier's service
department in which the customer reports either: (1) A total loss of
connectivity, or (2) an inability to make and/or receive any voice
calls using the carrier's voice replacement service while other
services provided over the customer's connection may continue to
function. The number of customer trouble reports must be tallied over
all lines that are serving customers in the replacement network in the
affected service area at any time during a contiguous 30-day
observation period.
A ``repair interval'' is the elapsed time, as on a running
clock, from when a customer reports a trouble to the carrier's service
department until the carrier's repair of the trouble is complete and
the customer's service is restored. If a customer reports trouble with
service during the 30-day
[[Page 62638]]
observation period that is not resolved by the end of the 30-day
observation period, the length of the repair interval runs from the
time the trouble with service is reported to the end of the observation
period. The elapsed time may be recorded in measurement units of the
applicant's choosing, as precisely as the applicant chooses. When
rounding is required, however, elapsed time must always be rounded up
to the next higher measurement unit. The ``average repair interval'' is
then calculated by summing the lengths of all repair intervals, over
all lines that are serving customers in the replacement network, and
dividing that sum by the number of customer trouble reports in the 30-
day observation period.
``Number of lines (prorated)'' is the number of
replacement network lines being served by the provider during the 30-
day observation period. For the purpose of this calculation, lines
served for part of the observation period should be pro-rated. A line
that is in service for the entire duration of the observation period is
counted as 1 line. When required, round fractional lines to the nearest
hundredth of a line.
The ``observation period duration'' should be expressed in
the same units as the average repair interval.
44. In reporting the results of the availability calculation to the
Commission as part of an application seeking streamlined treatment for
a technology transition discontinuance, the applicant must report: (1)
The number of customer trouble reports; (2) the average repair
interval; (3) the number of lines (prorated); and (4) the calculated
availability.
45. Congestion-Based Voice Call Failure. Certain non-packet
wireless access technologies providing fixed services can experience
the failure of voice calls because of network congestion. To address
this potential issue, we establish a metric that applies solely to
these technologies for determining the frequency of congestion-based
voice call failure, meaning the probability that a customer trying to
make a call will be unable to do so due to network congestion. We
conclude that probability must be less than one percent during each
daily peak busy hour, for at least 95 percent of the 30 days in the
measurement period, to serve as an adequate replacement for a legacy
voice service.
46. To calculate this benchmark for purposes of remaining eligible
for automatic grant, the provider must calculate the probability of
congestion-based voice call failure for every hour. For each of the 30
days measured, the provider must then determine the hour that had the
highest probability of congestion-based voice call failure that day.
The probability of congestion-based voice call failure each hour should
be determined by dividing the number of failed calls during the hour by
the total number of call attempts during the hour. For 95 percent of
the total days, the failure probability during the hour with the
highest failure probability must be less than one percent, i.e., for at
least 95 percent of the total days, less than one percent of all calls
may be blocked in the worst hour due to unavailability of a radio
access channel. These measurements would not be taken on a sample
basis, but would be collected at each cell tower over all call attempts
to or from customers for a 30-day period. In addition, if there are
seasonal differences in traffic load--for example, if the area is a
summer resort community--measurements to determine probability of call
failure must be taken during the busy season.
47. Network Coverage. In order to meet this aspect of the network
performance prong and be eligible for automatic grant, the applicant
must demonstrate that either: (i) A single replacement service reaches
the entire geographic footprint of the service area subject to
discontinuance; or (ii) there are multiple providers who collectively
cover the entirety of the affected service area.
48. If the applicant is relying on a single replacement service,
whether its own or that of a third party, eligibility for automatic
grant will depend on whether it demonstrates that the replacement
service reaches the entire geographic footprint of the area served by
the legacy voice service. However, in service areas where the applicant
relies on multiple providers' services, the applicant must demonstrate
that other providers cumulatively reach all customers in the affected
coverage area. In order to be eligible for automatic grant, the
application must: (i) Describe with sufficient particularity the
geographic scope of the replacement service(s) available from the other
provider(s), or (ii) otherwise demonstrate that each of these services
satisfies the criteria we adopt today. We decline to adopt a de minimis
threshold for judging whether a replacement service offers the same
coverage. We do not see a basis for drawing such a line.
49. Access to Critical Applications and Functionalities. Under this
prong, to remain eligible for automatic grant for a technology
transition discontinuance application, an applicant must certify or
show that at least one replacement service complies with regulations
regarding availability and functionality of 911 service for consumers
and public safety answering points (PSAPs), industry standards
regarding communications security, and regulations governing
compatibility with assistive technologies.
50. 911 and Emergency Services. To satisfy the second prong of the
adequate replacement test and remain eligible for automatic grant,
applicants must certify or show compliance with: (i) 911 accessibility
and location accuracy requirements; (ii) reliability and continuity of
911 service requirements with respect to backup power; and (iii) any
other applicable emergency service requirements. The basic 911 service
requirement is the transmission of wireless 911 calls to the PSAP (or
designated default answering point or appropriate local emergency
authority) without respect to their call validation process, and
without reference to location accuracy.
51. 911 Accessibility and Location Accuracy Requirements. The
applicant must demonstrate that the replacement service complies with
applicable regulations regarding the availability and required
functionality of 911 service. Those regulations include the rules
governing: (i) 911 call delivery, service, and location; (ii) the
capabilities and routing necessary for consumers' continued access to
911 emergency service; and (iii) 911 calls to PSAPs or other
appropriate local emergency authorities.
52. In order to satisfy this prong of the adequate replacement test
and thus remain eligible for automatic grant, the replacement service
must offer a dispatchable address capability. Traditional landline
service generally guarantees the provision of Master Street Address
Guide (MSAG)-validated address information to ensure proper call
routing, location determination, and dispatch of emergency responders.
Provision of other types of location information, such as wireless 911
ALI coordinates, would not ensure that the service provides an adequate
replacement for a legacy voice service. If the rules applicable to the
replacement service require provision of an MSAG-validated address, the
applicant may meet this requirement by certifying that its replacement
service meets the 911 registered location requirements applicable to
that service. However, if the 911 requirements for the replacement
service do not require provision of a validated address, the applicant
must further certify that it will register a validated dispatchable
address for each subscriber and provide the address to the appropriate
PSAP for all 911 calls. A dispatchable address is an
[[Page 62639]]
address that includes street name, building number, and any other
information critical to dispatching emergency responders to the correct
location and one that meets public safety requirements for inclusion in
and verification by Automatic Location Information databases and PSAP
Master Street Address Guides or their functional equivalents. If the
applicant is relying on a third party service, it must make an
appropriate showing that the third party service provide meets this
requirement. As applicable, alternative service providers must also be
compliant with other Commission rules for 911 call delivery, service,
and location in order for the applicant to retain eligibility for
streamlined processing. For the applicant to retain eligibility for
automatic grant, those alternative service providers must also comply
with any new dispatchable address/location requirements, as applicable,
that the Commission may adopt in the future. Consistent with the
Commission rules regarding discontinuing service to completely exit an
industry, the applicant seeking streamlined processing is required to
provide the same advance notice to all PSAPs in its service area, and
inform the Commission that it has done so. 47 CFR 63.71. These
requirements also include notifying all affected customers, the
applicable state agencies, and federally recognized Tribal Nations.
53. Backup Power. To ensure that consumers continue to receive the
benefit of continued access to 911, applicants seeking to discontinue a
legacy line-powered service in favor of a newer service that lacks
line-powering must certify or make a showing that at least one
replacement service in the area complies with our residential backup
power requirements. Alternatively, an applicant may show that another
provider in the affected area offers line-powering or complies with
section 12.5. Section 12.5 applies to providers of Covered Services,
which are defined as ``any facilities-based, fixed voice service
offered as residential service, including fixed applications of
wireless service, offered as a residential service that is not line
powered.'' Section 12.5 requires providers to offer subscribers the
option to purchase backup power for the Covered Service, with a minimum
of eight hours of standby backup power. By February 13, 2019, such
providers must also offer at least one option that provides a minimum
of twenty-four hours of standby backup power. Providers must also
notify consumers of the following: (1) Availability of backup power
sources; (2) service limitations with and without backup power during a
power outage; (3) purchase and replacement options; (4) expected backup
power duration; (5) proper usage and storage conditions for the backup
power source; (6) consumer backup power self-testing and monitoring
instructions; and (7) backup power warranty details, if any. We are not
adding to the Rule 12.5 requirements, but ensuring that a service
provider's compliance with those requirements is a key consideration in
whether that service represents an adequate replacement for a legacy
line-powered service.
54. In order to ensure that consumers are aware of technology
transitions with sufficient time to take action, we also require
applicants to provide to consumers the initial notice containing the
information elements of section 12.5, pursuant to section 63.71.
Section 63.71(b) states that a carrier shall file its 214 application
``on or after the date on which notice has been given to all affected
customers.'' Section 63.71(d) provides that applications shall be
automatically granted on the 31st day after filing an application for
non-dominant carriers and the 60th day for dominant carriers, unless
the Commission notifies the applicant that the grant will not be
automatically effective. 47 CFR 63.71(d). Consequently, we expect that
consumers will receive the initial backup power notice before the
earliest possible date for grant of a section 214 discontinuance
application--at least 30 days before the change occurs. Although
section 12.5 requires disclosures be made at the point of sale, we
anticipate that, in the context of the section 214 discontinuance
process, it will not be the individual sale of a non-line powered
service to a consumer that will trigger the need for notification of
the backup power requirements of section 12.5, but rather the
transition to a newer technology that may have different backup power
capabilities. The underlying principle remains the same: Prior to
initiation of a new service (whether at the point of sale or at the
time of a technology transition), consumers should have the benefit of
understanding how to ensure continuity of 911 service through backup
power. We continue to require annual disclosures to be made as
described in section 12.5, by any means reasonably calculated to reach
the individual consumer.
55. We are not adding to the existing backup power requirements. In
order for a service to qualify as an adequate replacement, it must
abide by our existing backup power rules so that consumers receive
information on backup power in advance of being transitioned to a
replacement service that lacks line-power. Otherwise, the consumer
could become aware of the limitations of the replacement service only
when his or her 911 call does not go through during a commercial power
outage.
56. Protecting PSAP Operations. To successfully meet this second
prong, an applicant must certify or show that at least one replacement
service complies with 911 network reliability requirements. This
requirement will help ensure that the transition to the replacement
service neither impairs the continuity of 911 service to PSAPs, nor
disrupts the configurations and connectivity necessary for their 911
operations. This certification or showing imposes no new requirements
and will not affect our policy work in other Commission proceedings.
57. Communications Security. To satisfy the second prong of the
adequate replacement test and remain eligible for automatic grant, an
applicant must certify or show that the replacement service offers
comparably effective protection from network security risks.
Satisfaction of this criterion is part of the adequate replacement test
required for streamlined processing, and is not mandatory to
discontinue service generally. This approach allows an applicant
relying on a third party service to satisfy the adequate replacement
test without requiring direct knowledge of that third party's security
posture.
58. Our overarching objective is to preserve the availability,
integrity, and confidentiality (AIC) of the network. Availability
refers to the accessibility and usability of a network upon demand.
Integrity refers to the protection against the unauthorized
modification or destruction of information. Confidentiality refers to
the protection of data from unauthorized access and disclosure, both
while at rest and in transit. In making the certification or showing
necessary to demonstrate comparably effective protection from network
security risks, the applicant must evaluate: (i) Relevant cybersecurity
standards and practices--whether industry-recognized or related to some
other identifiable approach--the replacement service employs at the
time of certification (e.g., a replacement service could employ the
National Institute of Standards and Technology (NIST) Framework for
Improving Critical Infrastructure Cybersecurity (NIST Framework) as a
management tool to inform decisions about cyber risk analysis and
organize mitigation activity
[[Page 62640]]
and CSRIC IV provides guidance to the Commission on communications
market sector implementation of the NIST Framework); (ii) what plans
(if any) the replacement service has to incorporate cybersecurity
threat information sharing as a part of the replacement service's
security operations; and (iii) roles and responsibilities for the
replacement service's cybersecurity, both with respect to the provider
but also any third parties (e.g., the applicant's vendors or
contractors), to promote effective accountability for privacy and
security.
59. If relying on its own service, the applicant must demonstrate
that the replacement service offers comparably effective protection
from network security risks to remain eligible for automatic grant.
That demonstration can be made in one of two ways. If the applicant's
network security management practices are enterprise-wide, i.e., the
enterprise safeguards AIC without differentiation between services,
geographic areas, or service-providing affiliates, a certification to
that effect will be sufficient to demonstrate that the replacement
service offers comparably effective protection from network security
risks.
60. Alternatively, the applicant must show that: (i) It has
evaluated any known risks and vulnerabilities of the replacement
service; (ii) it has taken measures to address and mitigate the
enumerated risks and vulnerabilities; (iii) it will inform consumers as
part of the discontinuance notice required pursuant to section 63.71
what security measure(s) the consumers should take vis-[agrave]-vis the
replacement service (e.g., downloading and maintaining up-to-date anti-
virus software) and other steps consumers may take to ensure safe use
of the replacement service; and (iv) it will undertake best efforts to
identify any vulnerable facilities (e.g., fire, EMS, law enforcement
and other critical infrastructure facilities) and users, and work to
address and mitigate the enumerated risks and vulnerabilities (e.g.,
the use of diverse IP paths for critical infrastructure). Where an
applicant provides written guidance or Public Service Announcements to
individuals or organizations in accordance with (iii) and (iv) above,
the applicant should provide a generic copy of such guidance to the
Commission. This certification is not a directive on how to address
network security. Applicants retain flexibility regarding how to
address such risks.
61. We recognize the challenges for an applicant to gain access to
a third party service's cyber risk management process would be
particularly acute. Therefore, an applicant relying on a third party
service instead must exercise reasonable diligence to identify the
security profile of the technology of the replacement service, based on
the replacement technology's ability to provide availability,
integrity, and confidentiality. Focusing on the established key
considerations of confidentiality, integrity, and availability provides
a frame of reference for identifying the risks associated with the
replacement technology. We note that a security profile is not intended
to identify any specific cyber risk management process or specific
vulnerabilities associated with a particular third party's replacement
service, but instead serves to identify the general cyber risks, from a
consumer's perspective, associated with the replacement service's
technology. This is a particularly effective solution for applicants
relying on third party services because a security profile may be
gleaned from open source information and does not require specific
knowledge of the inherent security of the replacement service. While a
security profile can be identified using publicly available
information, it should be arrived at after the applicant undertakes an
analysis centered on the availability, integrity, and confidentiality
model described above under the certification approach. In this regard,
the security profile can adjust to new threats and vectors as they
emerge.
62. We seek to ensure that an applicant has established a sound
basis for its representations about the comparable effectiveness of the
protections from network security risks employed by a third-party
replacement service, by exercising a reasonable degree of diligence in
making those representations in light of all the facts and
circumstances.
63. No carrier is required to comply with any specific network
security standards. We do not dictate what measures a company must
take, nor do we require that they submit potentially sensitive
information to the Commission as part of their section 214 application.
Rather, meeting this criterion is only necessary to satisfy the
adequate replacement test, and that in turn is only required if they
wish to remain eligible for automatic grant. Beyond that, the
Commission has always recognized the importance of network security and
agrees with commenters that it is a crucial consideration in
determining whether an adequate replacement service exists.
Transitioning from legacy-based services to new technologies presents
new network vulnerability issues that did not exist with legacy
technologies. We conclude the flexible, individualized approach we take
to network security addresses concerns that applying a rigid standard
would be counter-productive. Additionally, while we recognize that
there is no universal cybersecurity standard to apply, we believe that
there are generally accepted guidelines and best practices that
carriers should consider when evaluating their own cybersecurity
posture or the security profile of the replacement technology.
64. Services for Individuals with Disabilities. Under the critical
applications prong, applicants will certify that at least one
replacement service complies with the Commission's existing applicable
accessibility, usability, and compatibility requirements governing
services benefiting individuals with disabilities as a means to ensure
that the replacement service offers accessibility levels at least as
effective as those offered by the legacy voice service.
65. The Commission's rules regarding telecommunications-related
accessibility requirements govern standards for accessibility,
usability, and compatibility for: (i) Telecommunications services and
functionalities; (ii) voicemail and interactive menu functionalities;
and (iii) advanced communications services (ACS), defined by statute to
include both interconnected and non-interconnected VoIP service. The
rules obligate service providers to ensure that a service is accessible
to and usable by individuals with disabilities ``if readily
achievable'' for services subject to part 6 or 7 of the rules, and
``unless not achievable'' for services subject to part 14 of the rules.
To remain eligible for streamlined processing, an applicant must
demonstrate that any public mobile service proposed as an adequate
replacement complies with sections 14.60 and 14.61 of the rules. When a
standard of accessibility or usability is not achievable, service
providers are required to ensure the relevant service, functionality,
or application is compatible with existing peripheral devices or
specialized customer premises equipment commonly used by individuals
with disabilities. To remain eligible for automatic grant, providers
also must comply with rules regarding: (i) Product design, development
and evaluation; (ii) accessible information pass through; and (iii)
customer access to information, documentation, and training.
66. In order to meet this factor under the critical applications
prong, any new
[[Page 62641]]
service must provide levels of accessibility, usability, and
compatibility as effective as the legacy voice service to be deemed an
adequate replacement utilizing a new technology. We also expect that,
due to reduced costs and heightened capabilities of next-generation
services, more accessibility features and functionalities will be
achievable within the meaning of our rules. Thus, we encourage carriers
to proffer replacement services that have the potential to provide new
accessibility features and functionalities and to make newly achievable
features and functionalities available to their customers with
disabilities.
67. We also remind carriers and interconnected VoIP service
providers of their obligation under the existing telecommunications
relay service rules to provide access to TRS, including 711 dialing
access. The proposed replacement service or the alternative services
available from other providers must provide such access, where required
under the Commission's rules.
68. To the extent persons with disabilities need to transition to
new equipment in order to maintain the same functionality or make use
of improved functionality such as described above, we encourage service
providers to make that transition as simple and inexpensive as
possible, particularly for those who do not qualify for existing state
and federal equipment distribution programs, and for those who are
replacing devices not covered by equipment distribution programs.
Interfaces between the network and user equipment and applications
should facilitate interconnection of low-cost devices and software
applications that provide accessibility.
69. We decline to impose an independent requirement with respect to
real-time text (RTT) technology in this proceeding, but note that any
requirements adopted in the Real-Time Text Notice of Proposed
Rulemaking (RTT NPRM) docket would become part of our analysis under
this factor. The RTT NPRM (2016 WL 1752915; 81 FR 33170-01, May 25,
2016) proposed rules defining the obligations of wireless service
providers and equipment manufacturers to support RTT over IP-based
wireless voice services, and establishing technical standards for
minimum required functionalities, the support providers must offer for
those functionalities, and timelines for implementation of this
transition. The RTT NPRM further sought comment on whether to amend the
Commission's rules to place comparable responsibilities to support RTT
on providers and manufacturers of wireline IP services and equipment
that enable consumers to initiate and receive communications by voice.
Applicants would be required to adhere to whatever applicable RTT
implementation obligations and timetables are established by any final
rules adopted in the RTT NPRM proceeding.
70. Interoperability with Key Applications and Functionalities.
Consistent with the FNPRM, 80 FR 57768-01, we define applications as
offerings that run on TDM-based service, such as home alarm systems and
modems, whereas functionalities are offerings included in the service,
such as call-waiting and operator services. At the same time, we make
clear that carriers are not required to provide access to these
capabilities in perpetuity.
71. Identifying Key Applications. Widely adopted low-speed modem
devices--in particular, fax machines, home security alarms, medical
monitoring devices, analog-only caption telephone sets, and point-of-
sale terminals--make up the initial list of key applications for which
applicants seeking automatic grant must demonstrate that any
replacement service offers interoperability. We will expect replacement
services to offer compatibility with these devices until 2025, to
provide time for the marketplace to migrate to new services and
applications that will provide similar functions. Because the specific
streamlining criteria we adopt are limited to ensuring adequate
replacements for legacy voice services, it is not appropriate to adopt
a low-latency option requirement. Non-voice services to which section
214(a) discontinuance obligations apply and voice services subject to
section 214(a) being discontinued in non-technology transitions
circumstances will continue to be subject to our pre-existing
discontinuance process, which provides the public an opportunity to
comment and to which our traditional five-factor balancing test
applies.
72. Because the list we adopt today may not be fully inclusive of
all applications and functionalities that are significantly valued by
stakeholders, we also adopt a process to supplement this list. We
direct the Office of Engineering and Technology, working in
consultation with the Wireline Competition Bureau and the Wireless
Telecommunications Bureau (together, the Bureaus), and subject to the
guidelines below, to seek comment and, based on the record developed,
propose additions to the list of key applications and functionalities
adopted above for Commission review and approval. Within three months
of the effective date of the order, the Bureaus will release a public
notice inviting consumers and industry stakeholders to indicate whether
additional functionalities and applications should be added to the
list. The Bureaus will also engage in outreach to solicit input from
consumer and industry groups.
73. Relevant considerations in determining whether an application
or functionality retains value to consumers in the marketplace such
that it should be made interoperable with any replacement include
whether: (i) Customers rely on the application or functionality for
health or safety reasons; (ii) the application or functionality is used
as a wholesale input by other providers; (iii) the application or
functionality relies on vendor equipment or inputs that have been
discontinued; and (iv) the service provider, as opposed to the end-user
customer, is the least-cost avoider. In this context, either the
applicant or certain types of end users face costs to maintain
compatibility with certain applications in the event of technological
change in the applicant's provision of telecommunications services. The
least cost avoider is whichever of these two parties faces the least
costs of adapting to the technological change. Thus, the applicant
would be the least cost avoider if the cost of making adjustments to
its upgraded service would allow existing applications to continue to
operate were much lower than the aggregate costs to end users of
updating their applications.
74. The first ``health and safety'' factor will determine whether
consumers are using or ordering an application or functionality based
on a TDM service and their relative significance in those consumers'
lives. We identified medical monitoring devices and home security
alarms as the type of health and safety applications that remain key in
the marketplace. The second factor focuses on the consumers who
subscribe to an application or functionality from a provider who relies
on the TDM-based service being discontinued. The third factor focuses
on whether an application or functionality is outdated or operating on
equipment that is obsolete. The fourth and final factor will look at
whether the applicant or the end-user customer is able to address the
interoperability concerns at the least cost.
75. We recognize that interoperability considerations will likely
change over time. For that reason, we also conclude it important to
review regularly the list of key applications to determine
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whether elements of that list no longer are key. We direct staff to
examine this list as part of each internal biennial review of agency
regulations. We also direct the Bureaus to propose changes or updates
to the Commission, in particular to remove any applications or
functionalities that may become obsolete. The Bureaus will continue
their biennial review of the key applications and functionalities list
and certification requirements through the year 2025, at the end of
which the Bureaus will advise the Commission whether the list remains
necessary given the status of technology transitions.
76. Satisfying the Interoperability Standard for Key Applications.
To maintain eligibility for potential automatic grant status, covered
applicants must certify or show that a replacement service offers
interoperability and compatibility of the replacement service with the
list of key applications and functionalities. Conversely, applicants
will not be required to demonstrate interoperability with applications
and functionalities that are not on the list adopted today or as
modified in the future.
77. When seeking a section 214 discontinuance, applicants should
only certify compliance with this prong if the replacement service
allows the key application to function or perform in a substantially
similar manner as it did on the legacy voice service. Demonstrating
applications' adherence to established technical standards would be
influential in demonstrating achievement of the compliance criteria
discussed above. Although we decline to adopt any specific standards,
such as the as the ITU T.38 standard, or the Managed Facilities-Based
Voice Network (MFVN) standards, adherence to these standards would be
persuasive evidence of compliance with this prong should the underlying
certification be challenged. We also note that 64-kbps encoding in
accordance with ITU G.711 standard would allow a replacement service,
such as a wireless replacement, to carry any signal that a customer can
use today with a legacy TDM service. Lower bit rate signals cannot
carry all the information carried in a 64-kbps signal and therefore 64-
kbps encoding in accordance with ITU G.711 would support applications
such as fax, credit card transactions, and medical monitoring. This
would also be persuasive evidence of compliance. The Commission also
supports any further industry testing efforts.
78. The approach we announce today will sunset in 2025, at which
point the interoperability requirement will no longer be part of our
section 214 analysis. By that time, consumers will have had ample time
to transition to newer functionalities and applications. Until then, of
course, parties are always free to request changes by petition or
submissions in the biennial review process.
79. Other Issues Regarding the Adequate Replacement Test. We also
sought comment on whether to include: (i) A partial or full exemption
from the adequate replacement test for rural LECs, and (ii)
affordability as a separate criteria under the test.
80. No Rural LEC Exemption. We decline to provide any rural LEC
exemption because rural LECs have offered no compelling justification
as to why these criteria would not be just as beneficial to their
customers as they would be to the customers of other 214 discontinuance
applicants in demonstrating the adequacy of replacement services.
However, we are exempting small businesses, including rural LECs that
satisfy the standard for this designation, from the network testing
requirements we adopt today to remain eligible for automatic grant.
81. We emphasize that the Commission is committed to supporting
quick and efficient transitions to IP in rural areas, and we do not
burden rural LECs uniquely or excessively. Nevertheless, we find that
rural consumers, with often limited choice in service providers, should
equally benefit from full consideration of the adequacy of any
replacement service to ensure continued network performance and service
quality, as well as access to critical applications, and
interoperability with valued services.
82. Affordability. The evaluation of how potential price increases
for alternative services could impact consumers is a critical part of
the traditional five-factor test for evaluating discontinuance
applications. When applying the traditional five-factor test to
determine whether a discontinuance would adversely affect the public
convenience and necessity, the Commission can fully evaluate issues
involving price and assess the needs of consumers who may only have
access to a more expensive replacement service as part of a technology
transition. We appreciate commenters' suggestions on possible ways to
evaluate price increases in the context of the technology transitions.
When called upon to apply this standard in the context of technology
transitions, the Commission's focus will be on the price to consumers
before and after a discontinuance resulting from transition to a newer
technology. Numerous carriers have touted the reduced costs and
improved capabilities of their next-generation services and networks,
and we anticipate that we will see those benefits accrue to consumers.
83. We nonetheless acknowledge the concerns expressed in the record
about the potential for increased prices to customers for replacement
services due to technology transitions, and emphasize that the
Commission is committed to ensuring that technology transitions do not
unduly impact our most vulnerable citizens. A coalition of public
interest and civil rights groups urges that we require applicants to
conduct an impact assessment of the discontinuance on low-income people
and people of color. We decline to mandate such an impact analysis
requirement as part of our framework for streamlined processing because
we consider it unduly burdensome on applicants. Congress expressed its
intent in the Act to make available communications service to ``all the
people of the United States,'' and more recently, in the
Telecommunications Act of 1996, Congress asserted the principle that
rates should be ``affordable,'' and that access should be provided to
low-income consumers in all regions of the nation. More broadly, we are
taking actions to promote affordability of next-generation services in
a variety of proceedings. We recently modernized our Lifeline program
by taking a variety of actions that work together to encourage more
Lifeline providers to deliver supported broadband services as we
transition from primarily supporting voice services to targeting
support at modern broadband services. In approving Charter's
acquisition of Time Warner Cable and Bright House, the Commission
imposed a condition requiring the combined company to make available a
discounted broadband service for low-income consumers. In the order
approving the AT&T/DIRECTV transaction, the Commission required as a
condition of this transaction that the combined company make available
an affordable, low-price standalone broadband service to low-income
consumers in the combined AT&T/DIRECTV wireline footprint. Altice and
Cablevision also committed to providing a low-income broadband package
to all eligible customers in Cablevision's footprint within fifteen
months after closing. Under the Commission's rules, recipients of high-
cost universal service support are required to offer voice and
broadband services at rates that are reasonably comparable to offerings
of comparable services in urban areas. Consistent with these statutory
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objectives, affordability has always been--and will continue to be--a
critical component of the Commission's determination as to whether a
particular discontinuance request is consistent the Commission's
obligation to ensure the public interest is protected.
84. Nothing we adopt today limits that obligation. While we do not
include affordability as a separate criterion under the adequate
replacement test we adopt today, affordability remains a critical part
of the Commission's underlying evaluation of discontinuance requests.
Therefore, the cost of replacement services will be considered both
before issuing the Public Notice and during the comment period. Bureau
staff review applications for completeness, accuracy, and fulfillment
of all predicate requirements, including providing notice to affected
customers, before issuing the Public Notice. In order to be considered
for streamlined processing, applicants must include information about
the price of replacement services compared to the legacy service in
their application. The Bureau will not place an application on
streamlined processing if there is a material increase in price for the
replacement service compared to the service to be discontinued.
Moreover, consumers affected by potential discontinuances and their
advocates will continue to have the opportunity to offer comments and
objections in the streamlined process. Should we receive evidence of
material price increases for comparable services, particularly those
with a disproportionate impact on vulnerable populations, we would
remove that application from consideration for automatic grant.
85. Certain commenters also contend that the adequate replacement
test should include a requirement that the discontinuance will not
result in the loss of Lifeline service. We emphasize that the test we
announce today does not change or disturb in any way the eligible
telecommunications carrier (ETC) obligations of any incumbent carrier
to offer Lifeline service. In the recent Lifeline Reform Order, the
Commission concluded that if an incumbent LEC is the only Lifeline
provider in a given census block, it retains the ETC obligation to
offer voice service. That requirement exists independent of the section
214 discontinuance process. Thus, if there is no other Lifeline
provider in the community for which discontinuance is sought, the
incumbent LEC cannot terminate voice service to Lifeline subscribers,
and it must continue to offer Lifeline voice service to any qualifying
Lifeline household.
86. Other Issues Related to the Discontinuance Process. Consumer
Education. Discontinuance of an existing service on which customers
rely creates a need for customer education. To help ensure seamless
transitions, we conclude that an applicant must offer adequate customer
education materials and outreach plans when discontinuing a service as
part of a technology transition. We wish to establish guidelines, not
impose an unduly rigid mandate that forecloses flexibility.
Nonetheless, those guidelines need to be clear enough to allow
applicants to understand how to achieve compliance. To be clear, this
consumer education requirement applies to the same universe of
discontinuance applications as the new adequate replacement test, and
the procedures governing all other discontinuance applications are
undisturbed.
87. An adequate customer outreach plan must, at a minimum, involve:
(i) The development and dissemination of educational materials provided
to all customers affected containing specific information pertinent to
the transition, as specified in detail below; (ii) the creation of a
telephone hotline and the option to create an additional interactive
and accessible service to answer questions regarding the transition;
and (iii) appropriate training of staff to field and answer consumer
questions about the transition. All aspects of the consumer outreach
plan, including the educational materials, the telephone hotline, and a
carrier's contact information must be provided in accessible and usable
formats. To ensure that customers understand the notice that they
receive, any applicant who in the ordinary course of business regularly
uses a language other than English in its communications with customers
must provide the education materials to customers in both English and
that regularly used language. The Commission will consider a carrier's
certification of its compliance with these requirements as part of its
overall analysis of whether granting the application would be in the
public interest.
88. Similar to the DTV transition outreach requirements, the
required educational materials to customers may be provided as a ``bill
stuffer,'' an information section on the bill itself, or as a discrete
communication sent in the manner most commonly used to communicate with
the customer. We recognize that certain customers do not receive a
monthly bill (e.g., those using auto-payment plans), and thus provide a
separate option. As billing practices change over time, the way in
which customers receive educational materials is subject to change as
well. The materials must be delivered in accessible and usable formats
and include, at minimum: (i) A general description of the changes to
the service, written in a non-technical manner that can be readily
understood by the average consumer; (ii) the impact on existing
applications and functionalities that are liked to be purchased by
individual customers, including whether such applications, and
functionalities will be available following the transition; (iii) any
change in the price of the service and impact on applications and
functionalities which run on the service to be discontinued; and (iv)
points of contact who will address technology transitions issues, as
much as is practicable. We recognize that third parties unrelated to
the applicant provide many applications that run on the service. We
would encourage third parties to cooperate with these consumer
education efforts, but acknowledge that access to third party
information may not be possible. If the applicant is relying on a third
party service, we will further require the applicant to provide: (i)
Contact information for that third party and (ii) upon inquiry from a
consumer, information regarding the interoperability and compatibility
of applications benefiting individuals with disabilities that run on
the applicant legacy voice service.
89. We also encourage, but do not require, applicants to submit
their consumer education materials to the relevant state commission(s)
and/or Tribal government. We emphasize that there is an important role
for state commissions and Tribal governments in promoting consumer
education around the discontinuance of legacy voice services. As we
noted in the Emerging Wireline Order in the context of copper
retirement, states traditionally have played a critical role in
consumer protection, and we strongly encourage carriers seeking to
discontinue legacy voice services to partner with state public service
commissions, Tribal entities, and other state and local entities to
ensure consumers understand and are prepared for the transition. We
will not, however, impose a mandate regarding outreach to state
commissions and Tribal entities, because we believe it would unduly
burden both industry and state and Tribal entities.
90. The applicant is required to provide an accessible telephone
hotline staffed at least 12 hours per day, including between the hours
of 9 a.m. and 5 p.m., to answer questions
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regarding the discontinuance, as some individuals with disabilities
cannot afford Internet access, or may lack a reliable means of Internet
access in their area. The applicant also has the option to additionally
provide other interactive and accessible services (e.g., an online chat
with a customer service representative) to answer questions regarding
the discontinuance.
91. An applicant must designate staff trained to assist consumers
with disabilities with the complex disability access issues related to
the transition. The method for contacting these staff must be posted on
an applicant's Web site. To accommodate consumers who may not be able
to access the Internet, such contact information should be also
publicized via alternate means that are up to the applicant's
discretion, such as in the required education materials included with
billing statements, promotional materials, or publications disseminated
by national consumer organizations.
92. Email Notice. We revise our rules to explicitly permit carriers
to provide customers notice of discontinuances via email where those
customers have previously agreed to receive notice from the carrier by
that method. The Commission's rules currently require a carrier
planning to discontinue, impair, or reduce service as defined under
section 214 of the Act to notify all affected customers, the governor
of the state affected, that state's public utility commission, and the
Secretary of Defense. A copy of the relevant section 214 application
also must be submitted to the public utility commission, governor, and
secretary of defense. In the FNPRM, 80 FR 57768-01, the Commission
sought comment on whether to revise these rules to allow email-based or
other forms of electronic notice of discontinuance to customers,
including whether alternative forms of notice should be permissible
only with customer consent and, if so, what methods to obtain consent
should be permissible.
93. The record confirms our belief that email is the preferred
method of notice for many carriers seeking discontinuance, as well as
for consumers. We also explicitly permit carriers to provide notice by
any other alternative method to which the customer has previously
agreed. We decline, however, to afford carriers the blanket ability to
give notice to customers in whatever form those carriers believe is
most efficient, regardless of whether the customer has agreed to that
method. In both instances, the same provisos adopted in connection with
the recently-adopted copper retirement rules shall apply. For example,
notice must be made in a clear and conspicuous manner; and may not
contradict or be inconsistent with any other information with which it
is presented. In addition, (a) the incumbent LEC must have previously
obtained express, verifiable, prior approval from retail customers to
send notices via email regarding their service in general, or planned
network changes in particular; (b) an incumbent LEC must ensure that
the subject line of the message clearly and accurately identifies the
subject matter of the email; and (c) any email notice returned to the
carrier as undeliverable will not constitute the provision of notice to
the customer.
94. Notice to Tribal Governments. We revise our rules to require
all carriers to provide notice of discontinuance applications to any
federally-recognized Tribal Nations with authority over the Tribal
lands in which the discontinuance, reduction, or impairment of service
is proposed, in addition to the notice already required to state PUCs,
state Governors, and the Department of Defense. This outcome aligns the
notice requirements for section 214 discontinuance applications and
copper retirement network changes, imposes the same requirement on all
carriers serving Tribal lands, and places Tribal governments in all
states in a position to prepare and address any concerns from consumers
in their Tribal communities.
95. Timing of Notice. Unlike the Emerging Wireline Order, where the
record on the copper retirement notice period reflected numerous
instances in which competitors and their customers suffered actual harm
due to the notice period, commenters in this proceeding have not
offered specific evidence of actual harm caused by the discontinuance
notice provisions in section 63.71. We therefore decline to revise
section 63.71 to require advance notice of a planned discontinuance or
to lengthen the discontinuance process by changing the existing
timeline for filing objections and/or allowing automatic grant. We
nonetheless recognize that large-scale technology transition-related
discontinuances have not yet occurred. Thus, while we do not take
action today to revise section 63.71, we emphasize that the Commission
may revisit this issue if presented with evidence of such a need in the
future.
96. Non-Substantive Change to Code of Federal Regulations. Our
current rules require that public notices of network changes, which
include copper retirement notices, be labeled with one of a variety of
enumerated titles, ``as appropriate.'' In the Emerging Wireline Order,
we adopted a unique set of network notification requirements specific
to incumbent LEC retirement of copper facilities. However, none of the
titles enumerated in section 51.329(c) relate specifically to copper
retirement notices. To alleviate this potential confusion and to allow
the public to readily differentiate copper retirement notices from all
other types of network change disclosures, we adopt two new titles to
those already included in section 51.329(c): ``Public Notice of Copper
Retirement Under Rule 51.332'' and ``Certification of Public Notice of
Copper Retirement Under Rule 51.332.''
97. Clarification of Copper Retirement Notice Rules. Under the
recently adopted revised copper retirement rules, copper retirement
notices to retail customers must include ``[t]he name and telephone
number of a contact person who can supply additional information
regarding the planned changes.'' Those same notices must also include
``a toll-free number for a customer service help line'' in the
requisite neutral statement of the services available to the incumbent
LEC's retail customers. To alleviate potential confusion regarding
whether an incumbent LEC must include the name and phone number of a
specific individual in copper retirement notices in addition to a toll-
free number for a customer service center, we clarify that copper
retirement notices to enterprise customers must include the name and
address of a contact person who can provide additional information
regarding the planned change, as required by section 51.327(a)(2).
Enterprise customers are all business customers other than those
considered very small. For copper retirement notices to mass market
customers, however, inclusion of the toll free number for a customer
service help line required by section 51.332(c)(2)(i)(C) will be
sufficient to satisfy the requirements of section 51.327(a)(2). Mass
market customers consist of residential customers and very small
business customers. Very small businesses typically purchase the same
kinds of services as do residential customers, and are marketed to, and
provided service and customer care, in a similar manner.
98. ORDER ON RECONSIDERATION. In response to a Petition for
Reconsideration filed by TelePacific, we revise the Commission's rules
to make a competitive LEC's application for discontinuance deemed
granted on the effective date of any copper retirement that made the
discontinuance unavoidable, so as long as the
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discontinuance application is filed at least 40 days prior to the
retirement effective date. This will address a gap in our rules that
left competitive LECs potentially vulnerable to violating our
discontinuance rules for reasons entirely outside of their control.
99. Background. The Commission addresses changes in carriers'
facilities and changes to their services through separate rules.
Changes to a carriers' facilities are subject to the Commission's
network change disclosure rules, which are notice-based. Changes to a
carrier's service, however, are subject to the Commission's service
discontinuance rules, which require Commission approval. All references
to the section 214 discontinuance process encompass the reduction or
impairment of service under section 214 as well.
100. In the Emerging Wireline Order, the Commission revised its
copper retirement notice rules to require 180 days' advance notice to
interconnecting entities and non-residential retail customers and 90
days' advance notice to residential retail customers. Under the prior
rules, a carrier could provide as little as 90 days' notice of a
planned copper retirement to interconnecting telephone exchange service
providers, and it was not required to provide any notice to retail
customers.
101. On November 18, 2015, U.S. TelePacific Corp. (TelePacific)
filed a Petition for Reconsideration of the Emerging Wireline Order to
address what it perceives to be a gap between the Commission's copper
retirement and discontinuance processes that could require a
competitive LEC to seek Commission authorization to discontinue
broadband service to its end user customers when a planned retirement
would cause the loss of access to copper facilities over which it
provides broadband service.
102. Among other problems, TelePacific could unavoidably find
itself out of compliance with the Commission's rules if the copper
retirement becomes effective and the incumbent LEC cuts off access to
its copper before the Commission approves TelePacific's discontinuance
application.
103. The Commission's rules require that a carrier file its section
214 discontinuance application ``on or after the date on which notice
has been given to all affected customers.'' The rules provide for
automatic grant of applications on the 31st day after filing for non-
dominant carriers and the 60th day after filing for dominant carriers,
unless the Commission removes the application from streamlined
processing. The Commission may in its discretion remove the
discontinuance application from streamlined processing. Thus, the
application could remain pending at the time the copper retirement
becomes effective. These potential outcomes, TelePacific contends,
arise from an unintended defect in the competitive safety net the
Commission created in the Emerging Wireline Order by the combination of
the 180-day copper retirement notice period and the interim reasonably
comparable wholesale access rule.
104. To address potential harm to its competitors and consumers,
TelePacific recommends either: (i) Automatically granting a section 214
application on the date of a copper retirement, as long as the
application is submitted at least 60 days before implementation of a
copper retirement; or (ii) ``requir[ing] a delay in the copper
retirement until the competitive LEC's discontinuance no longer creates
`an unreasonable degree of customer hardship.' '' There is currently no
mechanism for delaying a copper retirement, assuming the incumbent
LEC's notice complies with the Commission's rules.
105. Discussion. We revise the Commission's rules to harmonize the
discontinuance and newly-revised copper retirement processes.
Accordingly, if a competitive LEC files a section 214(a) discontinuance
application based on an incumbent LEC's copper retirement notice in
situations where the incumbent is not discontinuing TDM-based service,
the competitive LEC's application will be automatically granted on the
effective date of the copper retirement as long as it satisfies two
conditions. First, the competitive LEC's discontinuance application
must be submitted to the Commission at least 40 days before the
incumbent LEC's copper retirement effective date. Section 63.71(e) of
the Commission's rules provides that ``an application will be deemed
filed on the date the Commission releases public notice of the
filing.'' For purposes of the requirement we adopt today, the 40 days
will be measured from the date of submission for filing rather than on
the date the application is deemed filed under section 63.71(e).
Second, the competitive LEC's discontinuance application must contain a
certification that the basis for the application is the incumbent LEC's
planned copper retirement. Under this new requirement, competitive LECs
will have more than four months to consider the implications of the
planned copper retirement and weigh their alternatives.
106. As discussed above, the copper retirement and discontinuance
processes are distinct, the former based on notice and the latter on
approval. We conclude this approach strikes the right balance and
harmonizes the two processes. A competitive LEC will not be faced with
a pending discontinuance application after it loses access to copper
following a copper retirement, and incumbent LECs maintain certainty in
the timing of their copper retirements. We therefore grant in part
TelePacific's petition.
107. However, we deny the portion of the Petition that seeks
broader relief. Indefinitely delaying a planned copper retirement is an
untenable option. In the Emerging Wireline Order, we noted that
``retaining a time-limited notice-based process ensures that our rules
strike a sensible and fair balance between meeting the needs of
interconnecting carriers and allowing incumbent LECs to manage their
networks.'' Thus, in extending the copper retirement notice period, we
rejected the opportunity to provide for a notice period longer than six
months. Creating the potential for an indeterminate period of time
before an incumbent LEC can proceed with a planned copper retirement
would insert delay and uncertainty into the process and might deter
deployment of next-generation technologies, thus undermining the
balance we sought to attain when adopting the 180-day copper retirement
notice period. Indeed, delaying copper retirements until any
unreasonable degree of hardship to a competitive LEC's customers is
eliminated would transform the copper retirement process from notice-
based to approval-based. Because the Act requires only that incumbent
LECs ``provide reasonable public notice'' of network changes such as
copper retirements, we rejected such a result in the Emerging Wireline
Order. We reaffirm that conclusion here.
108. Although delaying a copper retirement would provide carrier-
customers and end user customers with the additional time they need to
consider their options and take steps to minimize disruption of service
and might even prevent the need for a competitive LEC to file a
preemptive section 214 application, this also would create a subjective
standard with resulting uncertainty in timing for the incumbent LEC
such that it would not be able to plan the specific timeframe of its
network changes with confidence. This in itself might discourage or
delay certain technology transitions, contrary to the Commission's
commitment to support and encourage the deployment of innovative and
improved communications networks.
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109. Paperwork Reduction Act Analysis. The Second Report and Order
contains new and modified information collection requirements subject
to the Paperwork Reduction Act of 1995 (PRA), Public Law 104-13. It
will be submitted to the Office of Management and Budget (OMB) for
review under section 3507(d) of the PRA. OMB, the general public, and
other Federal agencies will be invited to comment on the new or
modified information collection requirements contained in this
proceeding. In addition, we note that pursuant to the Small Business
Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C.
3506(c)(4), we previously sought specific comment on how the Commission
might further reduce the information collection burden for small
business concerns with fewer than 25 employees. In this present
document, we: (1) Require carriers to demonstrate that a service is an
adequate replacement for a legacy voice service by certifying or
showing that one or more replacement service(s) offers each of the
following: (i) Substantially similar levels of network infrastructure
and service quality as the applicant service; (ii) compliance with
existing federal and/or industry standards required to ensure that
critical applications such as 911, network security, and applications
for individuals with disabilities remain effective; and (iii)
interoperability and compatibility with an enumerated list of
applications and functionalities determined to be key to consumers and
competitors; (2) explicitly permit carriers to provide customers notice
of discontinuances via email where those customers have previously
agreed to receive notice from the carrier by that method; (3) require
carriers to provide notice of planned discontinuances to Tribal
governments in the state in which the discontinuance is proposed; (4)
require carriers to provide pricing information about the applicant
service subject to discontinuance and the proposed replacement service;
and (5) require carriers to provide an adequate consumer outreach plan
and accompanying consumer education materials when discontinuing legacy
retail services. We also revise section 51.329(c) of the Commission's
rules to include two new titles that may be used to label public
notices of network changes. And in the Order on Reconsideration, we
revise the Commission's rules to provide that if a competitive LEC
files a section 214(a) discontinuance application based on an incumbent
LEC's copper retirement notice without an accompanying discontinuance
of TDM-based service, the competitive LEC's application will be
automatically granted on the effective date of the copper retirement as
long as (1) the competitive LEC submits its discontinuance application
to the Commission at least 40 days before the incumbent LEC's copper
retirement effective date, and (2) the competitive LEC's discontinuance
application contains a certification that the basis for the application
is the incumbent LEC's planned copper retirement. We have assessed the
effects of these requirements and find that any burden on small
businesses will be minimal because: (1) We do not require carriers to
conduct testing or otherwise meet the criteria we adopt today; (2)
carriers already conduct testing when developing their networks; (3)
once a carrier completes testing of a next-generation service and
successfully obtains automatic grant, it need not provide testing
results again if it files an application involving a substantially
similar replacement service; (4) we include a small business exemption
from the testing requirements; (5) we are not imposing new standards of
service on carriers seeking to discontinue existing services; (6) we
are permitting carriers to provide notice to customers by means through
which the customer has already agreed to receive communications from
the carrier; (7) the notice that carriers must provide to Tribal
governments is the very same notice they must already provide to the
public utility commission and to the governor of the state in which the
discontinuance, reduction, or impairment of service is proposed, and to
the Secretary of Defense; (8) carriers must already appropriately label
their network change disclosures; and (9) we address a gap in our rules
such that now a competitive LEC will not be faced with a pending
discontinuance application after it loses access to copper following a
copper retirement and incumbent LECs maintain certainty in the timing
of their copper retirements.
110. Congressional Review Act. The Commission will send a copy of
this Second Report and Order and Order on Reconsideration to Congress
and the Government Accountability Office pursuant to the Congressional
Review Act.
111. Final Regulatory Flexibility Analysis. As required by the
Regulatory Flexibility Act of 1980, as amended (RFA), the Commission
included an Initial Regulatory Flexibility Analysis (IRFA) of the
possible significant economic impact on a substantial number of small
entities of the policies and rules proposed in the Emerging Wireline
Order and FNPRM in GN Docket No. 13-5, 80 FR 57768-01. The Commission
sought written public comment on the proposals in the FNPRM, including
comment on the IRFA. This Final Regulatory Flexibility Analysis (FRFA)
conforms to the RFA.
112. Need for, and Objectives of, the Final Rules. In the Emerging
Wireline Order and FNPRM, 80 FR 57768-01, the Commission emphasized the
importance of speeding market-driven technological transitions and
innovations while preserving the core statutory values as codified by
Congress: Competition, consumer protection, universal service, and
public safety. In this Order, we further those values by updating our
review and notice procedures governing the filing and review of
technology transitions discontinuance applications filed pursuant to
section 214 of the Act. Furthering these core values will accelerate
customer adoption of technology transitions. The Order adopts rules
that will appropriately manage the technology transitions, and develop
the right framework for new technologies. To fulfill the Commission's
goal of stripping away the outdated and unnecessary, we have provided
common sense solutions in the interim until this as yet not fully
formed new technology regime emerges.
113. In this Order, we define our expectations for what the public
interest will require before a carrier can take a legacy voice service
off the market and refine our section 214 discontinuance notice
requirements to ensure that the public is aware of and prepared for
such transitions. The action we take is in the public interest as we
are providing certainty to carriers, thereby advancing technology
transitions.
114. Technology Transitions Discontinuance Applications. In the
context of discontinuance applications related to technology
transitions, the public interest requires that applicants filing to
discontinue a legacy TDM-based voice service as part of a transition to
a new technology, whether IP, wireless, or another type (technology
transition discontinuance applicants) must identify in the application
that a technology transition is implicated. Unlike traditional
discontinuance applications, in order to retain eligibility for
streamlined processing and potential automatic grant, the Order
requires that technology transition discontinuance applicants submit
with their application either a certification or a showing as to
whether an adequate replacement exists in the service area. Applicants
also must submit price
[[Page 62647]]
information about the service subject to discontinuance and the
proposed replacement service.
115. Specifically, the Order requires that an applicant for a 214
discontinuance demonstrates that a service is an adequate replacement
for a legacy voice service by certifying or showing that one or more
replacement service(s) offers each of the following: (i) Substantially
similar levels of network infrastructure and service quality as the
applicant service; (ii) compliance with existing federal and/or
industry standards required to ensure that critical applications such
as 911, network security, and applications for individuals with
disabilities remain available; and (iii) interoperability and
compatibility with an enumerated list of applications and
functionalities determined to be key to consumers and competitors.
116. Technology transition applicants can either demonstrate
compliance with these objective criteria or make a demonstration that,
despite not being able to meet the criteria, the totality of the
circumstances demonstrates that an adequate replacement nonetheless
exists. Applicants either (i) certifying or (ii) demonstrating
successfully through their showing that an adequate replacement exists
remain eligible for automatic grant pursuant to section 63.71(d) of the
Commission's rules as long as the existing requirements for automatic
grant are satisfied. To ensure that consumers receive the integrated
service experience they need and deserve, the Order requires that a
single service (whether first- or third-party) satisfy all three prongs
of the adequate replacement test in order to be eligible for automatic
grant.
117. The Order explains that if an applicant cannot certify or make
that showing, or declines to pursue the voluntary path of streamlined
treatment, it must include in its application an explanation of how
their proposed discontinuance will not harm the public interest with
specific reference to the five factors the Commission traditionally
considers. The Bureau, acting on delegated authority, will then weigh
that information as part of the traditional multi-factor evaluation,
but with the adequate replacement factor subject to increased scrutiny
under the newly enhanced test.
118. The Order rejects calls from incumbent LECs to presume that
particular technologies, by their nature, represent an adequate
replacement for legacy voice services in all instances. Our public
interest analysis demands that applicants provide objective evidence
showing a replacement service will provide quality service and access
to needed applications and functionalities. At the same time, we
recognize the importance of promoting speedy transitions. Therefore,
the Order allows a for a more streamlined approach for discontinuances
involving services that are substantially similar to those for which
section 214 discontinuance has previously been approved. Commenters
will have the opportunity to rebut an applicant's planned reliance on a
previous application if they can offer substantial evidence that the
technology or network infrastructure are not in fact substantially
similar to the service subject to the certifications in the previous
application or the certifications have been proven unreliable, based on
significant consumer complaints or new independent data. The practical
effect of this rule is to allow the applicant to bypass the performance
testing requirements. This streamlined approach benefits applicants,
while protecting the interests of all stakeholders, industry and
consumers.
119. The Order further streamlines the section 214 process in
instances where consumers no longer subscribe to legacy voice services.
Although this rulemaking is focused primarily on technology
transitions, the Commission emphasizes the market is constantly
evolving, even outside the context of these crucial transitions. For
that reason, the Commission adopts AT&T's commonsense proposal that a
section 214 discontinuance application be eligible for automatic grant
without any further showing if the applicant can demonstrate that the
service has zero customers in the relevant service area and no requests
for service in the last six months.
120. The Order also rejects incumbent LECs' contention that we
should establish timelines for reviewing applications that are not
eligible for automatic grant. The Order rejects this request because
the public interest demands that we provide appropriate scrutiny and
careful review to discontinuance applications related to technology
transitions given their novelty and complexity, and we cannot guarantee
at this time how long that process will take. Such timelines could
force the Commission to shortchange its responsibility to ensure that
technology transitions result in high service quality and successful
customer experiences.
121. The Order finds that both first and third party services
should be eligible as potential adequate replacement services. The
Order concludes that applicants relying on a third party service should
be allowed to make a prima facie showing based on publicly available
information as to whether the third party service meets our test as an
adequate replacement. The Order emphasizes that the adequate
replacement test is only part of the public interest analysis, and the
Commission will take into account an applicant's faultless inability to
access necessary data and information from a third party when reviewing
any application that relies on the existence of third party services to
meet the adequate replacement test. An objector to a section 214
application relying on a third party service must rebut the prima facie
showing made by the applicant. Should the objector raise legitimate
concerns, the Commission will remove the application from consideration
for automatic grant. In attempting to rebut such a showing, members of
the public who use the third party service can agree to participate in
tests necessary to measure network performance, as required under the
criteria.
122. The Order declines to provide any rural LEC exemption. The
order concludes that rural consumers, with often limited choice in
service providers, should equally benefit from full consideration of
the adequacy of any replacement service to ensure continued network
performance and service quality, as well as access to critical
applications, and interoperability with valued services. Moreover, the
Order concludes that rural LECs have offered no compelling
justification as to why the adequate replacement criteria would not be
just as beneficial to their customers as they would be to the customers
of other 214 discontinuance applicants in demonstrating the adequacy of
replacement services. However, as discussed below, we are exempting
small businesses, including rural LECs that satisfy the standard for
this designation from the network testing requirements we adopt today
to remain eligible for automatic grant.
123. The Order does not include affordability as a separate
criterion under the adequate replacement test but states that the cost
of replacement services will be considered during the application
review process. The Order concludes that if there is a material
increase in the price for the replacement service compared to the
service to be discontinued, the Bureau will not place the application
on streamlined processing.
124. Adequate Replacement Test. After adopting the general
framework, the Order details a three-prong adequate
[[Page 62648]]
replacement test that enables potential automatic grant of a
discontinuance application. We emphasize that no carrier must meet
these criteria or conduct testing. Also, the adequate replacement
factor is merely one part of a multifactor balancing test, and the
benchmarks associated with the criteria provide guidance to carriers
and a path toward automatic grant of their technology transitions
discontinuance applications. We also emphasize that once a carrier
completes testing of a next-generation service and successfully obtains
automatic grant, it need not conduct testing again if it files an
application involving a substantially similar replacement service.
125. Prong One: Network Infrastructure and Service Quality. First,
consumers expect and deserve a replacement for an applicant service
that will provide comparable network quality and service performance.
Therefore, the Order requires that to satisfy the first prong of the
adequate replacement test and thus remain eligible for automatic grant,
an applicant must demonstrate that a service or combination of services
provides: (a) Substantially similar network performance as the service
being discontinued, which involves satisfying benchmarks for latency
and data-loss; (b) substantially similar service availability as the
service being discontinued, which involves satisfying a benchmark of
99.99 percent availability calculated by using data regarding customer
trouble reports, the average repair interval in responding to those
reports, the number of lines in the service area, and the duration of
the observation period; and (c) coverage to the entire affected
geographic service area, which involves demonstrating that either: (i)
A single replacement service reaches the entire geographic footprint of
the service area subject to discontinuance, or (ii) there are multiple
providers who collectively cover the entirety of the affected service
area. The Order interprets ``substantially similar'' in this context to
mean that the network operates at a sufficient level with respect to
the metrics identified in the Order, such that the network platform
will ensure adequate service quality for time-sensitive applications,
and support applications and functionalities that are associated with
these services.
126. Network Performance. The Order finds that 30 days of network
performance testing is necessary, at least initially, to ensure that
applicants actually meet the benchmarks we have established to be
eligible for automatic grant and to ensure that the network is in a
stable state and to allow for long-term projection of network
infrastructure performance. The Order emphasizes that network
performance has long been a hallmark of this country's communications
networks and that must continue during the technology transitions. The
Order specifies the testing methodology to be used in measuring network
performance in order to avoid confusion and argument over the merits of
particular results reported by carriers in their discontinuance
applications. Moreover, established testing parameters will ensure that
the Commission analyzes similar data sets from applicants in the
technology transitions. While the Order provides some flexibility in
the testing parameters an applicant will use, the Commission will
include in its evaluation of the discontinuance application whether the
testing conditions used were appropriate to measure performance. Thus,
in addition to testing results, the Commission will consider the
testing parameters as a factor in determining whether it needs to
remove the application from streamlined processing. If the testing
parameters raise sufficient concerns such that the Commission removes
the application from streamlined processing, the Commission will then
consider those testing parameters in any totality of the circumstances
analysis of the adequacy of the replacement network.
127. The Order provides smaller carriers more flexibility in how
they demonstrate network performance under this prong of the three-
prong test. We recognize that network testing under the parameters
established in Appendix B could be more difficult for smaller carriers
and relatively speaking burdensome, given the more limited number of
customers. Thus, the Order concludes that carriers with 100,000 or
fewer subscriber lines, aggregated across all affiliates, may remain
eligible for automatic grant without compliance with the specific
testing requirements of the network performance criterion we articulate
today. We further note that this exemption from complying with the
specific testing parameters announced herein does not apply to any
rate-of-return carrier that is affiliated with a price cap carrier. The
Order does not extend this exemption to any other components of the
adequate replacement test we adopt today, including both of the other
aspects of the network infrastructure prong (service quality and
network coverage) or the other two prongs of the test.
128. Service Availability. The Order concludes that a 99.99 percent
service availability standard, calculated according to the formula and
parameters established in the Order, is a reasonable approach to ensure
that a replacement service presumptively provides substantially similar
service as the service being discontinued. The Order adopts a test that
consists of a standard formula traditionally used by industry to
measure telephone service availability for which the Order defined the
variables to ensure accuracy and that all discontinuing carriers are
measuring the same information. The replacement service's availability
will be calculated using data regarding customer trouble reports, the
average repair interval in responding to those reports, the number of
lines in the service area, and the duration of the observation period
to reach a representative measurement of a ``four 9s'' benchmark used
to measure service availability. The Order concludes these variables
will provide the best measure of customers' ability to access their
provider's network. And, as with the network performance testing, the
Order requires a 30-day observation period to ensure network stability
and allow for long-term projection of network reliability.
129. Certain non-packet wireless access technologies providing
fixed services can experience the failure of voice calls because of
network congestion. To address this potential issue, we establish a
metric that applies solely to these technologies for determining the
frequency of congestion-based voice call failure, meaning the
probability that a customer trying to make a call will be unable to do
due to network congestion. We conclude that, to satisfy this benchmark
and remain eligible for automatic grant, the probability must be less
than one percent during the daily peak busy hour for at least 95
percent of the 30 days in the measurement period, for this type of
network to serve as an adequate replacement for a legacy voice service.
Non-packet wireless access technologies used to provide fixed services
are of particular concern here because, unlike service over copper
loops which is dedicated to one subscriber, the radio access network is
shared by multiple subscribers. The network could thus conceivably lack
adequate capacity and result in an unacceptable level of failed calls
due to congestion.
130. Establishing a benchmark for service availability protects
consumers, schools, libraries, healthcare facilities, utilities, and
small- and medium-sized businesses, all of which depend on a service to
be available when needed for everyday or emergency use. Past
experiences, including what occurred
[[Page 62649]]
on Fire Island after Superstorm Sandy, demonstrate the importance of
reliability as we undergo technology transitions. We now find that a
service availability benchmark will help provide interested
stakeholders with clear, objective ``criteria that will eliminate
uncertainty that could potentially impede the industry from actuating a
rapid and prompt transition to IP and wireless technology.''
131. Network Coverage. The Order requires that to meet this prong
and thus be eligible for streamlined processing, a replacement service
must be available to all affected customers covering the entire
geographic scope of the service area subject to the application and
actually function as intended for affected customers, or else it cannot
be certified as a replacement service for those customers.
Specifically, in order to be eligible for automatic grant, the
application must describe with sufficient particularity the geographic
scope of the replacement service(s) available from the other
provider(s) and must otherwise demonstrate that each of these services
satisfies the criteria we adopt today. This requirement promotes the
core values established by the Act, including that of ensuring
universal access. Allowing a carrier to discontinue service when there
are no other service options available would run contrary to that
mission. Additionally, this requirement, as a part of our overarching
determination of the public interest implications of a discontinuance
application, sufficiently addresses any concerns regarding potential
disparate impacts on minority communities. The Order declined to adopt
a de minimis threshold for judging whether a replacement service offers
the same coverage as to ensure that all customers in a service
territory where the legacy voice service is offered continue to have
the ability to obtain service.
132. Prong Two: Critical Applications. Second, the public relies on
assurances that critical applications related to public safety and
protecting those most vulnerable remain accessible and operational
through any transition. Therefore, to satisfy the second prong of the
adequate replacement test and remain eligible for automatic grant,
applicants must demonstrate that access to critical applications and
functionalities as required under our rules remains available. Under
this second prong, an applicant for discontinuance of service must
certify that at least one replacement service complies with Commission
regulations regarding availability and functionality of 911 service for
consumers and public safety answering points (PSAPs), provides
comparably effective network security, and complies with Commission
regulations regarding compatibility with assistive technologies.
Incorporating these certifications into our section 214 process
benefits consumers, public safety entities, and industry participants
alike by providing clear, consistent, and certain guidance regarding
the importance of ensuring that critical applications will continue to
function following a technology transition and are free from network
vulnerabilities.
133. The Order specifically concludes that, in order to satisfy the
consumer access to 911 requirement and remain eligible for automatic
grant, the replacement service must offer a dispatchable address
capability. If the rules applicable to the replacement service require
provision of an MSAG-validated address, the applicant may meet this
requirement by certifying that its replacement service meets the 911
registered location requirements applicable to that service in the
Commission's rules. However, if the 911 requirements for the
replacement service do not require provision of a validated address,
the applicant must further certify that it will register a validated
dispatchable address for each subscriber and provide the address to the
appropriate PSAP for all 911 calls. If relying on a third party
service, the applicant must show that the third party service provide
meets this requirement to allow the applicant to remain eligible for
streamlined processing. These requirements will ensure that PSAPs
continue to receive accurate location information to dispatch emergency
first responders directly to the correct location of the 911 call,
thereby serving to minimize the response time critical for saving lives
and safeguarding the public.
134. The Commission declined to impose any new financial
obligations on carriers under this prong. For example, while we
acknowledge the perspective of consumer advocacy groups and state and
local governments that argue that when the transition to a replacement
service requires upgrade of assistive technologies, the applicant
should not only inform affected users of the associated costs but help
subsidize them, we emphasize that that this is not the appropriate
forum in which to impose any new financial obligations upon providers.
135. Prong Three: Interoperability. Third, we also emphasize in the
Order that consumers should have access to the applications and
functionalities they have come to associate as--and which currently
remain--key components of the applicant service. Therefore, to satisfy
the third prong of the adequate replacement test and retain eligibility
for streamlined processing, the Order requires that an applicant must
demonstrate that a replacement service offers compatibility with an
enumerated set of applications and functionalities. The Order adopts
AT&T's proposal that widely adopted low-speed modem devices such as fax
machines, home security alarms, medical monitoring devices, analog-only
caption telephone sets, and point-of-sale terminals should make up the
initial list of key applications for which interoperability is
required.
136. The Order directs the Office of Engineering and Technology,
working in consultation with the Wireline Competition Bureau and the
Wireless Telecommunications Bureau (Bureaus) and subject to the
guidelines below, to seek comment and, based on the record developed,
propose additions to the list of key applications and functionalities
adopted above for Commission review and approval. These guidelines are:
(i) Whether customers rely on the application or functionality for
health or safety reasons; (ii) whether the application or functionality
is used as a wholesale input by other providers; (iii) whether the
application or functionality relies on vendor equipment or inputs that
have been discontinued; and (iv) whether the service provider, as
opposed to the end-user customer, is the least-cost avoider. The Order
concludes that it is appropriate to expect that replacement services
offer compatibility with these devices until 2025. These guidelines
reflect our goal of ensuring that the technology transitions broadly
benefit consumers, including those who still value certain applications
and functionalities associated with legacy voice services. Applying
certain market-based considerations and adopting a sunset for this
requirement is intended to address incumbent LECs' concerns about being
placed at a potential competitive disadvantage by requiring them
indefinitely to retain applications and functionalities that are no
longer important to consumers.
137. Again, whether by certification or appropriate showing,
applicants meeting this adequate replacement test will still have the
opportunity for automatic grant, allowing for speedy review where an
applicant complies with all relevant standards. Our mission here is to
ensure a customer experience with the replacement service that is
substantially similar to the customer experience with the service being
[[Page 62650]]
discontinued, not to create new obligations.
138. Other Issues. Customer Education & Outreach Plan. The Order
requires that an applicant offer an adequate customer education and
outreach plan in accessible and usable formats. An adequate customer
outreach plan includes: (i) The development and dissemination of
educational materials, provided to all customers affected, containing
specific information pertinent to the transition; (ii) the creation of
a telephone hotline and the option to create an additional interactive
and accessible service to answer questions regarding the transition;
and (iii) appropriate training of staff to field and answer consumer
questions about the transition. The educational materials must include,
at minimum: (i) A general description of the changes to the service,
written in a non-technical manner that can be readily understood by the
average consumer; (ii) the impact on existing applications and
functionalities that are likely to be purchased by individual
customers, including whether such applications and functionalities will
be available following the transition; (iii) any change in the price of
the service and impact on applications and functionalities which run on
the service to be discontinued; and (iv) points of contact who will
address technology transitions issues, as much as is practicable. If
the applicant is relying on a third party service, we require the
applicant to provide: (i) Contact information for that third party; and
(ii) upon inquiry from a consumer, information regarding the
interoperability and compatibility of applications and functionalities
benefiting individuals with disabilities that run on the applicant's
legacy voice service. Moreover, to ensure that customers understand the
notice that they receive, any applicant who in the ordinary course of
business regularly uses a language other than English in its
communications with customers must provide the education materials to
customers in both English and that regularly used language. We find
that the establishment of clear guidance on education outreach
materials will help promote the smoothest possible technology
transition, consumer choice, and the fulfillment of consumer
information needs. We also find that the plan's additional protections
for vulnerable consumers, as well as the required hotline, further
promote these values. Moreover, we do not find these requirements to be
overly burdensome, as much of the information we are requiring is
similar to the information required through copper retirement notices
under the rules adopted in the Emerging Wireline Order. The Commission
will consider a carrier's certification to these requirements as part
of its overall analysis of whether granting the application would be in
the public interest.
139. Email Notice. The rules adopted in the Order allow carriers to
provide email notice to customers of a planned discontinuance where
those customers have previously agreed to receive notice from the
carrier by that method. The Order allows carriers to provide notice by
any other alternative method to which the customer has previously
agreed. In both instances, the same provisos adopted in connection with
the recently-adopted copper retirement rules shall apply (e.g., notice
must be made in a clear and conspicuous manner; and may not contradict
or be inconsistent with any other information with which it is
presented). In addition, (a) the incumbent LEC must have previously
obtained express, verifiable, prior approval from retail customers to
send notices via email regarding their service in general, or planned
network changes in particular; (b) an incumbent LEC must ensure that
the subject line of the message clearly and accurately identifies the
subject matter of the email; and (c) any email notice returned to the
carrier as undeliverable will not constitute the provision of notice to
the customer. As in the copper retirement context, this requirement
should be sufficient to ensure that customers receive notice, without
imposing unnecessary additional burdens on incumbent LECs. This outcome
affords carriers greater flexibility in providing notice of
discontinuances and establishes a measure of symmetry between the email
notice requirements for discontinuances and the copper retirement
rules.
140. Notice to Tribal Governments. Further, the rules adopted in
the Order require all carriers to provide notice of discontinuance
applications to Tribal governments in the state in which the
discontinuance is proposed, in addition to the notice already required
to state PUCs, state governors, and the Department of Defense. This
outcome aligns the notice requirements for section 214 discontinuance
applications and copper retirement network changes, imposes the same
requirement on all carriers serving Tribal lands, and places Tribal
governments in all states in a position to prepare and address any
concerns from consumers in their Tribal communities. The Order also
rejected proposals to revise the discontinuance timing of notice rules
in section 63.71.
141. Timing of Notice. The Order rejects revising section 63.71 to
require advance notice of a planned discontinuance or to lengthen the
discontinuance process by changing the existing timeline for filing
objections and/or allowing automatic grant. Based on the record, we
conclude that there is no evidence of actual harm; however, we
recognize that large-scale technology transition-related
discontinuances have not yet occurred. Thus, while we do not revise
section 63.71 in this Order, we emphasize that the Commission may
revisit this issue if presented with evidence of such a need in the
future.
142. Order On Reconsideration. The Order on Reconsideration revises
the Commission's rules to make a competitive LEC's application for
discontinuance deemed granted on the effective date of any copper
retirement that made the discontinuance unavoidable as long as the
discontinuance application is filed at least 40 days prior to the
retirement effective date and the competitive LEC certifies that the
copper retirement was the basis for the discontinuance. This is
intended to address a gap in the Commission's rules that left
competitive LECs potentially without recourse to avoid violating the
discontinuance rules. Under this new requirement, competitive LECs will
have more than four months to consider the implications of the planned
copper retirement and weigh their alternatives.
143. Summary of Significant Issues Raised by Public Comments to the
IRFA. There were no comments raised that specifically addressed the
proposed rules and policies presented in the FNPRM IRFA (80 FR 57768-
01). Nonetheless, the Commission considered the potential impact of the
rules proposed in the IRFA on small entities and reduced the compliance
burden for all small entities in order to reduce the economic impact of
the rules enacted herein on such entities.
144. Response to Comments by the Chief Counsel for Advocacy of the
Small Business Administration. Pursuant to the Small Business Jobs Act
of 2010, which amended the RFA, the Commission is required to respond
to any comments filed by the Chief Counsel of the Small Business
Administration (SBA), and to provide a detailed statement of any change
made to the proposed rule(s) as a result of those comments. The Chief
Counsel did not file any comments in response to the proposed rule(s)
in this proceeding.
145. Description and Estimate of the Number of Small Entities to
Which
[[Page 62651]]
Rules May Apply. The RFA directs agencies to provide a description of
and, where feasible, an estimate of the number of small entities that
may be affected by the proposed rules, if adopted. The RFA generally
defines the term ``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. Pursuant to the RFA, the statutory definition of a
small business applies ``unless an agency, after consultation with the
Office of Advocacy of the Small Business Administration and after
opportunity for public comment, establishes one or more definitions of
such term which are appropriate to the activities of the agency and
publishes such definition(s) in the Federal Register.'' A small
business concern is one that: (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). A small business is an independent business having less than 500
employees. Nationwide, there are a total of approximately 28.2 million
small businesses, according to the SBA.
146. The majority of the rules and policies adopted in the Order
will affect obligations on incumbent LECs and, in some cases,
competitive LECs. Our actions, over time, may affect small entities
that are not easily categorized at present. We therefore describe here,
at the outset, the comprehensive small entity size standards that could
be directly affected herein.
147. Wireline Providers. Wired Telecommunications Carriers. The SBA
has developed a small business size standard for Wired
Telecommunications Carriers, which consists of all such companies
having 1,500 or fewer employees. According to Census Bureau data for
2007, there were 3,188 firms in this category, total, that operated for
the entire year. Of this total, 3,144 firms had employment of 999 or
fewer employees, and 44 firms had employment of 1,000 employees or
more. Thus, under this size standard, the majority of firms can be
considered small.
148. Local Exchange Carriers (LECs). Neither the Commission nor the
SBA has developed a size standard for small businesses specifically
applicable to local exchange services. The closest applicable size
standard under SBA rules is for Wired Telecommunications Carriers.
Under that size standard, such a business is small if it has 1,500 or
fewer employees. According to Commission data, 1,307 carriers reported
that they were incumbent local exchange service providers. Of these
1,307 carriers, an estimated 1,006 have 1,500 or fewer employees and
301 have more than 1,500 employees. Consequently, the Commission
estimates that most providers of local exchange service are small
entities that may be affected by rules adopted pursuant to the Order.
149. Incumbent Local Exchange Carriers (Incumbent LECs). Neither
the Commission nor the SBA has developed a small business size standard
specifically for incumbent local exchange services. The closest
applicable size standard under SBA rules is for the category Wired
Telecommunications Carriers. Under that size standard, such a business
is small if it has 1,500 or fewer employees. According to Commission
data, 1,307 carriers reported that they were incumbent local exchange
service providers. Of these 1,307 carriers, an estimated 1,006 have
1,500 or fewer employees and 301 have more than 1,500 employees.
Consequently, the Commission estimates that most providers of incumbent
local exchange service are small businesses that may be affected by
rules adopted pursuant to the Order.
150. We have included small incumbent LECs in this present RFA
analysis. As noted above, a ``small business'' under the RFA is one
that, inter alia, meets the pertinent small business size standard
(e.g., a telephone communications business having 1,500 or fewer
employees), and ``is not dominant in its field of operation.'' The
SBA's Office of Advocacy contends that, for RFA purposes, small
incumbent LECs are not dominant in their field of operation because any
such dominance is not ``national'' in scope. The Small Business Act
contains a definition of ``small business concern,'' which the RFA
incorporates into its own definition of ``small business.'' We have
therefore included small incumbent LECs in this RFA analysis, although
we emphasize that this RFA action has no effect on Commission analyses
and determinations in other, non-RFA contexts.
151. Competitive Local Exchange Carriers (Competitive LECs),
Competitive Access Providers (CAPs), Shared-Tenant Service Providers,
and Other Local Service Providers. Neither the Commission nor the SBA
has developed a small business size standard specifically for these
service providers. The appropriate size standard under SBA rules is for
the category Wired Telecommunications Carriers. Under that size
standard, such a business is small if it has 1,500 or fewer employees.
According to Commission data, 1,442 carriers reported that they were
engaged in the provision of either competitive local exchange services
or competitive access provider services. Of these 1,442 carriers, an
estimated 1,256 have 1,500 or fewer employees and 186 have more than
1,500 employees. In addition, 17 carriers have reported that they are
Shared-Tenant Service Providers, and all 17 are estimated to have 1,500
or fewer employees. In addition, 72 carriers have reported that they
are Other Local Service Providers. Of the 72, seventy have 1,500 or
fewer employees and two have more than 1,500 employees. Consequently,
the Commission estimates that most providers of competitive local
exchange service, competitive access providers, Shared-Tenant Service
Providers, and other local service providers are small entities that
may be affected by rules adopted pursuant to the Order.
152. Interexchange Carriers. Neither the Commission nor the SBA has
developed a small business size standard specifically for providers of
interexchange services. The appropriate size standard under SBA rules
is for the category Wired Telecommunications Carriers. Under that size
standard, such a business is small if it has 1,500 or fewer employees.
According to Commission data, 359 carriers have reported that they are
engaged in the provision of interexchange service. Of these, an
estimated 317 have 1,500 or fewer employees and 42 have more than 1,500
employees. Consequently, the Commission estimates that the majority of
IXCs are small entities that may be affected by rules adopted pursuant
to the Order.
153. Other Toll Carriers. Neither the Commission nor the SBA has
developed a size standard for small businesses specifically applicable
to Other Toll Carriers. This category includes toll carriers that do
not fall within the categories of interexchange carriers, operator
service providers, prepaid calling card providers, satellite service
carriers, or toll resellers. The closest applicable size standard under
SBA rules is for Wired Telecommunications Carriers. Under that size
standard, such a business is small if it has 1,500 or fewer employees.
According to Commission data, 284 companies reported that their primary
telecommunications service activity was the provision of other toll
carriage. Of these, an estimated 279 have 1,500 or fewer employees and
five have more than 1,500 employees. Consequently, the Commission
estimates that most
[[Page 62652]]
Other Toll Carriers are small entities that may be affected by rules
adopted pursuant to the Order.
154. Wireless Providers. Wireless Telecommunications Carriers
(except Satellite). Since 2007, the Census Bureau has placed wireless
firms within this new, broad, economic census category. Under the
present and prior categories, the SBA has deemed a wireless business to
be small if it has 1,500 or fewer employees. For the category of
Wireless Telecommunications Carriers (except Satellite), census data
for 2007 show that there were 1,383 firms that operated for the entire
year. Of this total, 1,368 firms had employment of 999 or fewer
employees and 15 had employment of 1,000 employees or more. Since all
firms with fewer than 1,500 employees are considered small, given the
total employment in the sector, we estimate that the vast majority of
wireless firms are small.
155. Wireless Telephony. Wireless telephony includes cellular,
personal communications services, and specialized mobile radio
telephony carriers. The SBA has developed a small business size
standard for Wireless Telecommunications Carriers (except Satellite).
Under the SBA small business size standard, a business is small if it
has 1,500 or fewer employees. According to Commission data, 413
carriers reported that they were engaged in wireless telephony. Of
these, an estimated 261 have 1,500 or fewer employees and 152 have more
than 1,500 employees. Consequently, the Commission estimates that
approximately half or more of these firms can be considered small.
Thus, using available data, we estimate that the majority of wireless
firms can be considered small.
156. Cable Service Providers. Cable and Other Program Distributors.
Since 2007, these services have been defined within the broad economic
census category of Wired Telecommunications Carriers; that category is
defined as follows: ``This industry comprises establishments primarily
engaged in operating and/or providing access to transmission facilities
and infrastructure that they own and/or lease for the transmission of
voice, data, text, sound, and video using wired telecommunications
networks. Transmission facilities may be based on a single technology
or a combination of technologies.'' The SBA has developed a small
business size standard for this category, which is: All such firms
having 1,500 or fewer employees. To gauge small business prevalence for
these cable services we must, however, use current census data that are
based on the previous category of Cable and Other Program Distribution
and its associated size standard; that size standard was all such firms
having $13.5 million or less in annual receipts. According to Census
Bureau data for 2007, there were a total of 3,188 firms in this
category that operated for the entire year. Of this total, 2,684 firms
had annual receipts of under $10 million, and 504 firms had receipts of
$10 million or more. Thus, the majority of these firms can be
considered small and may be affected by rules adopted pursuant to the
Order.
157. Cable Companies and Systems. The Commission has also developed
its own small business size standards, for the purpose of cable rate
regulation. Under the Commission's rules, a ``small cable company'' is
one serving 400,000 or fewer subscribers, nationwide. The Commission
determined that this size standard equates approximately to a size
standard of $100 million or less in annual revenues. The Commission
also applied this size standard to MVPD operators in its implementation
of the CALM Act. Industry data shows that there are 660 cable operators
in the country. Depending upon the number of homes and the size of the
geographic area served, cable operators use one or more cable systems
to provide video service. Of this total, all but eleven cable operators
nationwide are small under this size standard. In addition, under the
Commission's rules, a ``small system'' is a cable system serving 15,000
or fewer subscribers. Current Commission records show 4,945 cable
systems nationwide. The number of active, registered cable systems
comes from the Commission's Cable Operations and Licensing System
(COALS) database on Aug. 28, 2013. A cable system is a physical system
integrated to a principal headend.
158. Of this total, 4,380 cable systems have less than 20,000
subscribers, and 565 systems have 20,000 or more subscribers, based on
the same records. Thus, under this standard, we estimate that most
cable systems are small entities.
159. All Other Telecommunications. The Census Bureau defines this
industry as including ``establishments primarily engaged in providing
specialized telecommunications services, such as satellite tracking,
communications telemetry, and radar station operation. This industry
also includes establishments primarily engaged in providing satellite
terminal stations and associated facilities connected with one or more
terrestrial systems and capable of transmitting telecommunications to,
and receiving telecommunications from, satellite systems.
Establishments providing Internet services or Voice over Internet
Protocol (VoIP) services via client-supplied telecommunications
connections are also included in this industry.'' The SBA has developed
a small business size standard for this category; that size standard is
$32.5 million or less in average annual receipts. According to Census
Bureau data for 2007, there were 2,383 firms in this category that
operated for the entire year. Of these, 2,346 firms had annual receipts
of under $25 million and 37 firms had annual receipts of $25 million or
more. Consequently, we estimate that the majority of these firms are
small entities that may be affected by our action.
160. Description of Projected Reporting, Recordkeeping, and Other
Compliance Requirements for Small Entities. A number of our rule
changes will result in additional reporting, recordkeeping, or
compliance requirements for small entities. All of the rules we
implement impose some compliance burdens on small entities by requiring
them to become familiar with the new rules to comply with them. In
certain cases, the burden of becoming familiar with the new rule in
order to comply with it is the only additional burden the rule imposes.
For all of the rule changes, we have determined that the benefit the
rule change will bring for consumers, competition, and innovation
outweighs the burden of the increased requirement/s. Other rule changes
decrease reporting, recordkeeping, or compliance requirements for small
entities. We have noted the applicable rule changes below impacting
small entities.
161. Adequate Replacement Test. Any carrier that wants the
potential for automatic grant of a technology transition discontinuance
application must comply with the new adequate replacement test
explained above. Although this will increase reporting, recordkeeping,
and compliance requirements for small businesses these certification
and compliance requirements are minimally necessary to enable us to
evaluate these types of discontinuance applications more briskly to the
benefit of applicants, consumers, and public safety entities. We
specifically balance these burdens against the need to ensure that
next-generation services meet the needs of consumers. These standards
will create certainty regarding technology transitions discontinuances,
and will benefit consumers, public safety entities, and industry
participants by clarifying the importance of ensuring
[[Page 62653]]
that network performance will be sufficient, that critical applications
will continue to function, and that consumers will have access to the
applications they associate as key components of the applicant service
following a technology transition.
162. Allowing transition applicants to either demonstrate
compliance with objective criteria or make a demonstration that,
despite not being able to meet the criteria, the totality of the
circumstances demonstrates that an adequate replacement nonetheless
exists, while remaining eligible for automatic grant gives applicants
flexibility and decreases the burdens associated with strict compliance
rules. Additionally, the Commission evaluating first and third party
services equally and allowing applicants relying on a third party
service to make a prima facie showing based on publicly available
information as to whether the third party service meets our test as an
adequate replacement gives applicants flexibility and decreases
compliance burdens. The Order further promotes speedy transitions and
decreases compliance burdens by allowing for a more streamlined
approach for discontinuances involving services that are substantially
similar to those for which section 214 discontinuance has previously
been approved and streamlining the section 214 process in instances
where consumers no longer subscribe to legacy voice service. These
rules allow the applicant to bypass the performance testing
requirements. Thus, the streamlined approach benefits applicants by
reducing the reporting, recordkeeping and compliance burdens resulting
from performance testing requirements, while protecting the interests
of all stakeholders, industry and consumers. It also ensures a customer
experience with the replacement service that is substantially similar
to the customer experience with the service being discontinued, without
creating new overly burdensome obligations.
163. Moreover, as described above, established network performance
testing parameters will avoid confusion over the merits of particular
results and ensure that the Commission analyzes similar data sets from
applicants in the technology transitions. Although network testing
increases compliance burdens, the Order provides some flexibility in
the testing parameters an applicant will use. If the testing parameters
raise sufficient concerns such that the Commission removes the
application from streamlined processing, the Commission will still
consider those testing parameters in any totality of the circumstances
analysis of the adequacy of the replacement network. We conclude these
metrics are appropriate for replacement networks in order to provide
substantially similar performance as a legacy TDM service.
164. Another rule that will decrease recording, recordkeeping and
compliance burdens on small businesses is the performance test
exemption for small carriers. We recognize that in other contexts
smaller carriers may require more tailored solutions and network
testing under the parameters established in Appendix B could be more
difficult for smaller carriers and relatively speaking burdensome,
given the more limited number of customers. Therefore, the Order
provides smaller carriers more flexibility in how they demonstrate
network performance under this prong of the three-prong test. The Order
concludes that carriers with 100,000 or fewer subscriber lines,
aggregated across all affiliates, may remain eligible for automatic
grant without compliance with the specific testing requirements of the
network performance criterion we articulate today.
165. The Order's established benchmarks for network performance,
service availability, and network coverage protect consumers that
depend on a network performing properly and service to be available
when needed for everyday or emergency use. Similarly, consumer access
to 911 and the dispatchable address requirement are critical to
ensuring public safety. The Order also notes that transitioning from
legacy-based services to new technologies presents new network
vulnerability issues that did not exist with legacy technologies and
comparing legacy voice services to new technologies is in part an
apples-to-oranges comparison. Thus, in order to demonstrate that a
replacement service is offering comparable security, the Order finds
that a security benchmark that measures the unique risks associated
with new technologies is necessary. The Order notes that satisfaction
of this criterion is part of the adequate replacement test required for
streamlined processing and is not mandatory to discontinue service
generally. Moreover, the Order's interoperability guidelines reflect
our goal of ensuring that technology transitions broadly benefit
consumers of all types, including those who still value certain
applications and functionalities associated with legacy voice services.
166. Therefore, the benefits of the adequate replacement test
outweigh any additional reporting, recordkeeping, or compliance
obligations upon small businesses.
167. Application Requirements. Applicants filing technology
transition discontinuance applications and seeking streamlined
treatment are also required to provide pricing information about the
applicant service subject to discontinuance and the proposed
replacement service. Although they are required to provide this
information, it allows the Commission to evaluate the application in a
streamlined manner without further information collections. This also
ensures that consumer interests are protected throughout technology
transitions.
168. Consumer Education & Outreach Plan. While the Order's
establishment of consumer education and outreach materials requires a
modest increase in a carrier's compliance burden, an overwhelming
majority of commenters support its inclusion as it will help promote
the smoothest possible technology transition, consumer choice, and the
fulfillment of consumer information needs. The outreach plan's
additional protections for vulnerable consumers, as well as the
required hotline, further promotes these values. The Commission does
not find these requirements to be overly burdensome as much of the
information we are requiring is similar to the information required
through copper retirement notices under the rules adopted in the
Emerging Wireline Order. It also enables providers to respond to any
customers who need assistance during the technology transitions
process. The Commission will consider a carrier's certification to
these requirements as part of its overall analysis of whether granting
the application would be in the public interest to minimize the burdens
of strict compliance.
169. Email Notice and Notice to Tribal Governments. Allowing
providers to send email and alternative forms of notifications
previously accepted by consumers decreases the burden of the
discontinuance notification requirement for small businesses. Thus,
making the discontinuance process more manageable for small businesses.
Requiring carriers to provide notice of discontinuance applications to
Tribal governments in the state in which the discontinuance is proposed
may increase the burden on small entities, but it aligns the notice
requirements for section 214 discontinuance applications and copper
retirement network changes, imposes the same requirement on all
carriers serving Tribal lands, and places Tribal governments in all
states in a position to prepare and address any
[[Page 62654]]
concerns from consumers in their Tribal communities.
170. Order On Reconsideration. The Order on Reconsideration's
revisions to the Commission's rules address a gap in the former rules
that clarifies and harmonizes the copper retirement and discontinuance
processes. Allowing a competitive LEC's application for discontinuance
to be deemed granted on the effective date of any copper retirement
that made the discontinuance unavoidable (if they meet certain
requirements described above) reduces the compliance burdens on
competitive LECs. Additionally, permitting competitive LECs to have
more than four months to consider the implications of the planned
copper retirement and weigh their alternative further reduces their
compliance burdens.
171. Steps Taken to Minimize the Significant Economic Impact on
Small Entities, and Significant Alternatives Considered. The RFA
requires an agency to describe any significant, specifically small
business, alternatives that it has considered in reaching its proposed
approach, which may include the following four alternatives (among
others): ``(1) The establishment of differing compliance or reporting
requirements or timetables that take into account the resources
available to small entities; (2) the clarification, consolidation, or
simplification of compliance and reporting requirements under the rule
for such small entities; (3) the use of performance rather than design
standards; and (4) an exemption from coverage of the rule, or any part
thereof, for such small entities.''
172. The Commission is aware that this rulemaking could impact
small entities by imposing costs and administrative burdens. For this
reason, in reaching its final conclusions and taking action in this
proceeding, the Commission has taken a number of measures to minimize
or eliminate the costs and burdens generated by compliance with the
adopted regulations. As described above, for example, we considered
alternatives to the rulemaking changes that could have increased the
burden of compliance for small businesses. We conclude that the new and
updated requirements are minimally necessary to ensure we meet our
statutory responsibilities with respect to technology transitions while
preserving the core values of consumer protection, competition,
universal service, and public safety. We believe that it is unlikely
that small business will be impacted significantly by the final rules
so as to outweigh the benefits of the rules.
173. In fact, we anticipate that in many instances, small
businesses will find their burden decreased by the new rules. For
example, permitting email-based notice of planned technology
transitions discontinuances to customers or notice by any other
alternative method to which the customer has previously agreed affords
carriers greater flexibility in providing notice and establishes a
measure of symmetry between the email notice requirements for
discontinuances and the copper retirement rules. The requirement is
sufficient to provide customers notice of discontinuance without
imposing additional burdens on carriers. Requiring carriers to provide
notice of discontinuance applications to Tribal governments in the
state in which the discontinuance is proposed aligns the notice
requirements for section 214 discontinuance applications and copper
retirement network changes, imposes the same requirement on all
carriers serving Tribal lands, and places Tribal governments in all
states in a position to prepare and address any concerns from consumers
in their Tribal communities.
174. Specifically, allowing technology transition applicants to
either demonstrate compliance with objective criteria or make a
demonstration that, despite not being able to meet the criteria, the
totality of the circumstances demonstrates that an adequate replacement
nonetheless exists, while remaining eligible for automatic grant, gives
applicants flexibility and decreases the economic burdens on small
businesses associated with strict compliance rules. Additionally, the
criteria established in the three-prong test provides clarity that
should enable us to evaluate these types of discontinuance applications
more briskly, to the benefit of applicants and consumers, including
small businesses. Incorporating these certifications into our section
214 process benefits consumers, public safety entities, and industry
participants alike by providing clear, consistent, and certain guidance
regarding the importance of ensuring that network performance will be
sufficient, critical applications will continue to function, and that
consumers will have access to the applications they associate as key
components of the applicant service following a technology transition.
175. Similarly, the Commission evaluating first and third party
services equally and allowing applicants relying on a third party
service to make a prima facie showing based on publicly available
information as to whether the third party service meets our test as an
adequate replacement gives small business applicants flexibility and
decreases the economic burdens associated with strict compliance rules.
Furthermore, requiring that a single service (whether first- or third-
party) satisfy all three prongs of the adequate replacement test in
order to be eligible for automatic grant ensures consumers receive the
integrated service experience they need and deserve and also reduces
the potential the economic impact of consumers having to find and
employ multiple service providers to satisfy their needs.
176. The Order recognizes the importance of promoting speedy
transitions by allowing for a more streamlined approach for
discontinuances involving services that are substantially similar to
those for which section 214 discontinuance has previously been approved
and streamlining the section 214 process in instances where consumers
no longer subscribe to legacy voice service. The practical effect of
these rules is to allow the applicant to bypass the performance testing
requirements. The streamlined approach benefits applicants by reducing
the economic burdens resulting from performance testing requirements,
while protecting the interests of all stakeholders, industry and
consumers. As discussed above, this also ensures a customer experience
with the replacement service that is substantially similar to the
customer experience with the service being discontinued, without
creating new overly burdensome obligations.
177. Furthermore, the established benchmarks for network
performance, service availability, and network coverage protect small
businesses that depend on a network performing properly and service to
be available when needed for everyday or emergency use. Another rule
that will decrease the economic burden on small businesses is the
performance test exemption for small businesses or carriers. Network
testing under the parameters established in Appendix B could be more
difficult for smaller carriers and relatively speaking economically
burdensome, given the more limited number of customers. Therefore, the
Order provides smaller carriers more flexibility in how they
demonstrate network performance under this prong of the three-prong
test. The Order's interoperability guidelines also reflect our goal of
ensuring that the technology transitions broadly benefit consumers of
all types, including those who still value certain applications and
functionalities associated with legacy voice services.
[[Page 62655]]
178. The Order's communications security criterion will ensure that
consumers receive comparably effective protection from network security
risks as they do with legacy networks. Limiting this criterion to the
context of streamlined processing and noting that compliance will be
examined flexibly will reduce the impact on small businesses.
179. The Order's establishment of clear guidance on education
outreach materials will help promote the smoothest possible technology
transition, consumer choice, and the fulfillment of consumer
information needs which effectively protects small businesses that
depend on an applicant's services by minimizing any negative economic
impact due to lack of understanding about a technology transition. The
outreach plan's additional protections for vulnerable consumers, as
well as the required hotline, further promotes these values.
180. By declining to provide any rural LEC exemption, the Order
also protects small businesses that depend on a network performing
properly and service to be available when needed for everyday or
emergency use. The Order concludes that rural consumers or small
businesses, with often limited choice in service providers, should
equally benefit from full consideration of the adequacy of any
replacement service to ensure continued network performance and service
quality, as well as access to critical applications, and
interoperability with valued services.
181. The Order on Reconsideration's revisions to the Commission's
rules to make a competitive LEC's application for discontinuance deemed
granted on the effective date of any copper retirement that made the
discontinuance unavoidable as long as the discontinuance application is
filed at least 40 days prior to the retirement effective date and the
competitive LEC certification that the copper retirement was the basis
for the discontinuance are intended to address a gap in the
Commission's rules that left competitive LECs potentially without
recourse to avoid violating the discontinuance rules. Permitting
competitive LECs to have more than four months to consider the
implications of the planned copper retirement and weigh their
alternative reduces burdens the former rules did not properly address.
These revisions reduce the economic impact on competitive LECs and
therefore burdens on consumers by clarifying and harmonizing the copper
retirement and discontinuance processes.
182. Federal Rules that Might Duplicate, Overlap, or Conflict with
the Rules. None.
183. Report to Congress. The Commission will send a copy of this
Second Report and Order and Order on Reconsideration, including the
FRFA, in a report to be sent to Congress pursuant to the SBREFA. In
addition, the Commission will send a copy of this Second Report and
Order, Order on Reconsideration, and Declaratory Ruling, including this
FRFA, to the Chief Counsel for Advocacy of the SBA. A copy of the
Second Report and Order, Order on Reconsideration, and Declaratory
Ruling, and the FRFA (or summaries thereof) will also be published in
the Federal Register.
184. Ordering Clauses. Accordingly, IT IS ORDERED that, pursuant to
sections 1-4, 201, 214, 251, and 303(r), of the Communications Act of
1934, as amended, 47 U.S.C. 151 through 154, 201, 214, 251, 303(r),
this Second Report and Order and Order on Reconsideration ARE ADOPTED.
185. IT IS FURTHER ORDERED that parts 51 and 63 of the Commission's
rules ARE AMENDED as set forth in Appendix A, and that any such rule
amendments that contain new or modified information collection
requirements that require approval by the Office of Management and
Budget under the Paperwork Reduction Act SHALL BE EFFECTIVE after
announcement in the Federal Register of Office of Management and Budget
approval of the rules, and on the effective date announced therein.
186. IT IS FURTHER ORDERED that this Second Report and Order and
Order on Reconsideration SHALL BE effective October 12, 2016, except
for 47 CFR 51.329(c), 63.19(a), 63.60, 63.71, 63.602, and the outreach
plan and consumer education requirements set forth in this Second
Report and Order, which contain information collection requirements
that have not been approved by OMB. The Federal Communications
Commission will publish a document in the Federal Register announcing
the effective date.
187. IT IS FURTHER ORDERED that the Petition for Reconsideration
filed by TelePacific IS GRANTED IN PART AND DENIED IN PART.
188. IT IS FURTHER ORDERED that the Commission's Consumer &
Governmental Affairs Bureau, Reference Information Center, SHALL SEND a
copy of this Second Report and Order and Order on Reconsideration to
Congress and the Government Accountability Office pursuant to the
Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).
189. IT IS FURTHER ORDERED that the Commission's Consumer &
Governmental Affairs Bureau, Reference Information Center, SHALL SEND a
copy of this Second Report and Order and Order on Reconsideration,
including the Final Regulatory Flexibility Analysis, to the Chief
Counsel for Advocacy of the Small Business Administration.
List of Subjects
47 CFR Part 51
Communications common carriers, Telecommunications.
47 CFR Part 63
Cable television, Communications common carriers, Radio, Reporting
and recordkeeping requirements, Telegraph, Telephone.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
Final Rules
For the reasons discussed in the preamble, the Federal
Communications Commission amends 47 CFR parts 51 and 63 as follows:
PART 51--INTERCONNECTION
0
1. The authority citation for part 51 continues to read as follows:
Authority: 47 U.S.C. 151-55, 201-05, 207-09, 218, 220, 225-27,
251-54, 256, 271, 303(r), 332, 1302.
0
2. Section 51.329 is amended by revising paragraph (c)(1) to read as
follows:
Sec. 51.329 Notice of network changes: Methods for providing notice.
* * * * *
(c) * * *
(1) The public notice or certification must be labeled with one of
the following titles, as appropriate: ``Public Notice of Network Change
Under Rule 51.329(a),'' ``Certification of Public Notice of Network
Change Under Rule 51.329(a),'' ``Short Term Public Notice Under Rule
51.333(a),'' ``Certification of Short Term Public Notice Under Rule
51.333(a),'' ``Public Notice of Copper Retirement Under Rule 51.332,''
or ``Certification of Public Notice of Copper Retirement Under Rule
51.332.''
* * * * *
[[Page 62656]]
PART 63--EXTENSION OF LINES, NEW LINES, AND DISCONTINUANCE,
REDUCTION, OUTAGE AND IMPAIRMENT OF SERVICE BY COMMON CARRIERS; AND
GRANTS OF RECOGNIZED PRIVATE OPERATING AGENCY STATUS
0
3. Section 63.19 is amended by revising paragraph (a) introductory text
to read as follows:
Sec. 63.19 Special procedures for discontinuances of international
services.
(a) With the exception of those international carriers described in
paragraphs (b) and (c) of this section, any international carrier that
seeks to discontinue, reduce, or impair service, including the retiring
of international facilities, dismantling or removing of international
trunk lines, shall be subject to the following procedures in lieu of
those specified in Sec. Sec. 63.61 through 63.602:
* * * * *
0
4. Section 63.60 is amended by adding paragraph (h) to read as follows:
Sec. 63.60 Definitions.
* * * * *
(h) The term ``technology transition'' means any change in service
that would result in the replacement of a wireline TDM-based voice
service with a service using a different technology or medium for
transmission to the end user, whether Internet Protocol (IP), wireless,
or another type; except that retirement of copper, as defined in Sec.
51.332(a) of this chapter, that does not result in a discontinuance,
reduction, or impairment of service requiring Commission authorization
pursuant to this part shall not constitute a ``technology transition''
for purposes of this part.
0
5. Section 63.71 is amended by revising paragraph (a) introductory
text, adding paragraphs (a)(6) and (7), redesignating paragraph (f) as
(j), redesignating paragraphs (b) through (e) as (c) through (f),
adding new paragraph (b), adding a sentence to the end of newly
redesignated paragraph (f), and adding paragraphs (g), (h), and (i).
The revisions and additions read as follows:
Sec. 63.71 Procedures for discontinuance, reduction or impairment of
service by domestic carriers.
* * * * *
(a) The carrier shall notify all affected customers of the planned
discontinuance, reduction, or impairment of service and shall notify
and submit a copy of its application to the public utility commission
and to the Governor of the State in which the discontinuance,
reduction, or impairment of service is proposed; to any federally-
recognized Tribal Nations with authority over the Tribal lands in which
the discontinuance, reduction, or impairment of service is proposed;
and also to the Secretary of Defense, Attn. Special Assistant for
Telecommunications, Pentagon, Washington, DC 20301. Notice shall be in
writing to each affected customer unless the Commission authorizes in
advance, for good cause shown, another form of notice. For purposes of
this section, notice by email constitutes notice in writing. Notice
shall include the following:
* * * * *
(6) For applications to discontinue, reduce, or impair an existing
retail service as part of a technology transition, as defined in Sec.
63.60(h) of this part, in order to be eligible for automatic grant
under paragraph (f) of this section:
(i) A statement that any service offered in place of the service
being discontinued, reduced, or impaired may not provide line power;
and
(ii) The information required by Sec. 12.5(d)(1) of this chapter.
(7) For applications to discontinue, reduce, or impair an existing
retail service as part of a technology transition, as defined in Sec.
63.60(h) of this part, in order to be eligible for automatic grant
under paragraph (f) of this section:
(i) A description of any security responsibilities the customer
will have regarding the replacement service; and
(ii) A list of the steps the customer may take to ensure safe use
of the replacement service.
(b) If a carrier uses email to provide notice to affected
customers, it must comply with the following requirements in addition
to the requirements generally applicable to the notice:
(1) The carrier must have previously obtained express, verifiable,
prior approval from retail customers to send notices via email
regarding their service in general, or planned discontinuance,
reduction, or impairment in particular;
(2) A carrier must ensure that the subject line of the message
clearly and accurately identifies the subject matter of the email; and
(3) Any email notice returned to the carrier as undeliverable will
not constitute the provision of notice to the customer.
* * * * *
(f) * * * An application to discontinue, reduce, or impair an
existing retail service as part of a technology transition, as defined
in Sec. 63.60(h) of this part, may be automatically granted only if
the applicant provides affected customers with the notice required
under paragraphs (a)(6) and (7) of this section, and the application
contains the showing or certification described in Sec. 63.602(b) of
this part.
(g) An application to discontinue, reduce, or impair a service for
which the requesting carrier has had no customers or reasonable
requests for service during the 180-day period immediately preceding
submission of the application shall be automatically granted on the
31st day after its filing with the Commission without any Commission
notification to the applicant, unless the Commission has notified the
applicant that the grant will not be automatically effective.
(h) An application to discontinue, reduce, or impair an existing
retail service as part of a technology transition, as defined in Sec.
63.60(h) of this part, shall contain the information required by Sec.
63.602 of this part. The certification or showing described in Sec.
63.602(b) of this part is only required if the applicant seeks
eligibility for automatic grant under paragraph (f) of this section.
(i) An application to discontinue, reduce, or impair a service
filed by a competitive local exchange carrier in response to a copper
retirement notice filed pursuant to Sec. 51.332 of this chapter shall
be automatically granted on the effective date of the copper
retirement; provided that:
(1) The competitive local exchange carrier submits the application
to the Commission for filing at least 40 days prior to the copper
retirement effective date; and
(2) The application includes a certification, executed by an
officer or other authorized representative of the applicant and meeting
the requirements of Sec. 1.16 of this chapter, that the copper
retirement is the basis for the application.
* * * * *
0
6. Section 63.602 is added to read as follows:
Sec. 63.602 Additional contents of applications to discontinue,
reduce, or impair an existing retail service as part of a technology
transition.
(a) The application shall include:
(1) The contents specified in Sec. 63.505 of this part;
(2) A statement identifying the application as involving a
technology transition, as defined in Sec. 63.60(h) of this part;
[[Page 62657]]
(3) Information regarding the price of the service for which
discontinuance authority is sought and the price of the proposed
replacement service; and
(4) A certification, executed by an officer or other authorized
representative of the applicant and meeting the requirements of Sec.
1.16 of this chapter, that the information required by this section is
true and accurate.
(b) In order to be eligible for automatic grant under Sec.
63.71(f) of this part, an applicant must demonstrate that a service(s)
identified pursuant to Sec. 63.505(k)(2) of this part is an adequate
replacement for the voice service identified pursuant to Sec.
63.505(k)(1) of this part by either certifying or showing, based on the
totality of the circumstances, that one or more replacement service(s)
satisfies all of the following criteria:
(1) Offers substantially similar levels of network infrastructure
and service quality as the service being discontinued;
Note to paragraph (b)(1): For purposes of this section,
``substantially similar'' means that the network operates at a
sufficient level such that it will allow the network platform to
ensure adequate service quality for interactive and highly-
interactive applications or services, in particular voice service
quality, and support applications and functionalities that run on
those services.
(2)(i) Complies with regulations regarding the availability and
functionality of 911 service for consumers and public safety answering
points (PSAPs), specifically Sec. Sec. 1.7001 through .7002, 9.5,
12.4, 12.5, 20.18, 20.3, 64.3001 of this chapter;
(ii) Offers comparably effective protection from network security
risks as the service being discontinued; and
(iii) Complies with regulations governing accessibility, usability,
and compatibility requirements for:
(A) Telecommunications services and functionalities;
(B) Voicemail and interactive menu functionalities; and
(C) Advanced communications services, specifically 47 CFR 6.1
through 6.11, 7.1 through 7.11, 14.1 through 14.21, 14.60 through
14.61; and
(3) Offers interoperability with key applications and
functionalities.
[FR Doc. 2016-20215 Filed 9-9-16; 8:45 am]
BILLING CODE 6712-01-P