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720 Federal Register / Vol. 70, No.

3 / Wednesday, January 5, 2005 / Rules and Regulations

read Vegetable, tuberous and corm, Policy Division, Wireline Competition completes a call, that LEC is responsible
except potato, subgroup 1D. Bureau, at (202) 418–0574, or via the for compensation. The Payphone
* * * * * Internet at denise.coca@fcc.gov. For Compensation Rules define these
additional information concerning the responsible carriers as ‘‘Completing
[FR Doc. 05–89 Filed 1–4–05; 8:45 am] Paperwork Reduction Act information Carriers’’ and require them to develop
BILLING CODE 6560–50–S collection requirements contained in their own system of tracking calls to
this document, contact Judith B. completion, the accuracy of which must
Herman at 202–418–0214, or via the be confirmed and attested to by a third
FEDERAL COMMUNICATIONS Internet to Judith-B.Herman@fcc.gov. party auditor. Completing Carriers are
COMMISSION SUPPLEMENTARY INFORMATION: This is a required to compensate the PSPs on a
summary of the Commission’s Order on quarterly basis for calls that are
47 CFR Part 64 completed on the Competing Carriers’
Reconsideration, CC Docket No. 96–128,
[CC Docket No. 96–128; FCC 04–251] FCC 04–251, adopted October 20, 2004, platforms; to provide quarterly reports
and released October 22, 2004. Filings to the PSPs; and their chief financial
The Pay Telephone Reclassification and comments are also available for officers (CFOs) must attest to the
and Compensation Provisions of the public inspection and copying during accuracy of the quarterly payment
Telecommunications Act of 1996 regular business hours at the FCC amount. The Payphone Compensation
Reference Information Center, Portals II, Rules also imposed reporting
AGENCY: Federal Communications requirements on an ‘‘Intermediate
Commission. 445 12th Street, SW., Room CY–A257,
Washington, DC, 20554. They may also Carrier,’’ defined in the rules as ‘‘a
ACTION: Final rule; petitions for facilities-based long distance carrier that
be purchased from the Commission’s
reconsideration. copy contractor, Best Copy and Printing, switches payphone calls to other
Inc., 445 12th Street, SW., Room CY– facilities-based long distance carriers.’’
SUMMARY: By this document, we Additionally, the Payphone
consider four petitions for B402, Washington, DC 20554, telephone
1 (800) 378–3160 or (202) 4880–5300, Compensation Rules also give parties
reconsideration of our Report and Order flexibility to agree to alternative
which established detailed rules (the facsimile (202) 488–5563, or via e-mail
at http://www.bcpiweb.com. compensation arrangements (ACA) so
‘‘rules’’ or ‘‘Payphone Compensation that small Completing Carriers may
Rules’’) ensuring that payphone service Synopsis of the Order on avoid the expense of instituting a
providers (PSPs) are ‘‘fairly Reconsideration and the Report and tracking system and undergoing an
compensated’’ for each and every Order audit.
completed payphone-originated call.
This Order on Reconsideration does not I. Introduction III. Discussion
change the compensation framework 1. In this Order on Reconsideration, 3. In the Order on Reconsideration,
adopted last year, but rather refines and we consider four petitions for the Commission considers four petitions
builds upon its approach. The reconsideration of our Report and Order for reconsideration filed in response to
Commission provides guidance on the adopted on September 30, 2003, which the Report and Order in this docket. The
types of contracts that it would deem to established detailed rules ensuring that Order on Reconsideration clarifies and
be reasonable methods of compensating PSPs are ‘‘fairly compensated’’ for each modifies the Report and Order by
PSPs, extends the time period that and every completed payphone- adopting the following changes: (1)
carriers must retain certain payphone originated call (Implementation of the Clarifying that a Completing Carrier
records, and clarifies the rules’ Pay Telephone Reclassification and must give a PSP adequate notice of an
reporting, certification, and audit Compensation Provisions of the ACA prior to its effective date, with
requirements. Telecommunications Act of 1996, CC sufficient time for the PSP to object to
DATES: Effective January 5, 2005, except Docket No. 96–128, Report and Order, an ACA, and prior to the termination of
for § 64.1310(g) which contains 68 FR 62751–01, (November 6, 2003)). an ACA; (2) clarifying that, in a
information collection requirements that This Order on Reconsideration, released complaint proceeding under the
are not effective until approved by the on October 22, 2004, does not change Payphone Compensation Rules, a
this compensation framework, but Completing Carrier may assert as an
Office of Management and Budget. The
rather refines and builds upon its affirmative defense that the PSP’s
Commission will publish a document in
approach. In the Order on objection to an ACA was unreasonable;
the Federal Register announcing the
Reconsideration, the Commission (3) clarifying that Completing Carriers
effective date of that section.
provides guidance on the types of are required to report only completed
ADDRESSES: A copy of any comments on calls in their quarterly reports; (4)
contracts that it would deem to be
the Paperwork Reduction Act reasonable methods of compensating extending the time period that carriers
information collection requirements PSPs, extends the time period that must retain certain payphone records,
contained herein should be submitted to carriers must retain certain payphone for dispute resolution purposes, from 18
Judith B. Herman, Federal records, and clarifies the rules’ to 27 months; (5) clarifying that
Communications Commission, Room 1– reporting, certification, and audit quarterly reports should use industry
C804, 445 12th Street, SW., Washington, requirements. standard formats; (6) clarifying the
DC 20554, or via the Internet to Judith- responsibilities of LECs under the
B.Herman@fcc.gov. II. Background Payphone Compensation Rules; (7)
FOR FURTHER INFORMATION CONTACT: 2. The Report and Order held that the clarifying that a Completing Carrier may
Darryl Cooper Attorney-Advisor, last facilities-based long distance carrier post its System Audit Report and
Competition Policy Division, Wireline in a call path—either an interexchange § 64.1320(e) statement on its website or
Competition Bureau, at (202) 418–7131, carrier (IXC) or a switched-based on a clearinghouse’s website, instead of
or via the Internet at reseller (SBR)—is responsible for transmitting these documents to every
darryl.cooper@fcc.gov or Denise A. compensating PSPs. For local calls, PSP; (8) clarifying that a Completing
Coca, Attorney-Advisor, Competition where a local exchange carrier (LEC) Carrier’s CFO may issue a single blanket

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Federal Register / Vol. 70, No. 3 / Wednesday, January 5, 2005 / Rules and Regulations 721

certification addressed to all PSPs to rulemaking proceedings, unless the This way, Completing Carriers will not
which the carrier owes compensation, agency certifies that ‘‘the rule will not, be required to send a copy of the ACA
and such certification may be if promulgated, have a significant and seek affirmative consent from as
transmitted electronically or posted on economic impact on a substantial many as 5500 PSPs. We believe that
the web; and (9) clarifying that where a number of small entities.’’ The RFA these clarifications are merely
clearinghouse is performing some of a generally defines the term ‘‘small administrative, and therefore the result
Completing Carrier’s compensation entity’’ as having the same meaning as of the use of the web will be to confer
obligations, the Completing Carrier’s the terms ‘‘small business,’’ ‘‘small benefits rather than impose burdens on
auditor may rely upon, under certain organization,’’ and ‘‘small governmental small SBRs. Therefore, these
circumstances, a third party’s audit of jurisdiction.’’ In addition, the term clarifications will not have a significant
the clearinghouse. ‘‘small business’’ has the same meaning economic impact on small entities.
as the term ‘‘small business concern’’ 11. Additionally, the record in this
IV. Procedural Matters proceeding demonstrates that PSPs
under the Small Business Act. A ‘‘small
4. Final Paperwork Reduction Act business concern’’ is one which: (1) Is might use their veto power over ACAs
Analysis. This document contains independently owned and operated; (2) in a manner that would unreasonably
modified information collection is not dominant in its field of operation; interfere with an SBR’s ability to enter
requirements subject to the Paperwork and (3) satisfies any additional criteria into ACAs. For instance, demands by
Reduction Act of 1995 (PRA), Public established by the Small Business PSPs that an ACA contain a provision
Law 104–13. It will be submitted to the Administration (SBA). that forces IXCs to assume ultimate
Office of Management and Budget 8. As required by the RFA, an Initial responsibility for the payphone
(OMB) for review under section 3507(d) Regulatory Flexibility Analysis (IRFA) compensation obligations of SBRs
of the PRA. OMB, the general public, was incorporated in the Federal would undermine the Commission’s
and other Federal agencies are invited to Register summary of the Further Notice determination in the Report and Order
comment on the new or modified of Proposed Rulemaking that IXCs are not liable for such
information collection requirements (Implementation of the Pay Telephone payphone compensation. Such behavior
contained in this proceeding. In Reclassification and Compensation would have the effect of deterring IXCs
addition, we note that pursuant to the Provisions of the Telecommunications and SBRs from entering into ACAs.
Small Business Paperwork Relief Act of Act of 1996, CC Docket No. 96–128, Accordingly, to ensure a level playing
2002, Public Law 107–198, see 44 U.S.C. Further Notice of Proposed Rulemaking, field for IXCs, SBRs, and PSPs, we
3506(c)(4), we previously sought 68 FR 32720, (June 2, 2003)). The clarify our rules to make clear that PSPs
specific comment on how the Commission sought written public do not hold unlimited veto power over
Commission might ‘‘further reduce the comments on the proposals in the an ACA. This Order on Reconsideration
information collection burden for small FNPRM, including comments on the therefore clarifies that, in a complaint
business concerns with fewer than 25 IRFA. On September 30, 2003, the proceeding under the rules, a
employees.’’ Commission adopted a Report and Completing Carrier may assert as an
5. In this present document, we have Order that included a Final Regulatory affirmative defense that the PSP’s
assessed the effects of extending the Flexibility Analysis (FRFA) that objection to an ACA was unreasonable.
time period that carriers must maintain conformed to the RFA. In response to We believe this clarification confers a
verification data. The amendment to four petitions for reconsideration of the benefit on small SBRs by allowing them
§ 64.1310(g), which extends the time Report and Order, the Commission to freely enter into ACAs, thereby
carriers must maintain verification data adopted this Order on Reconsideration. avoiding the costs of maintaining a
from 18 to 27 months, will not adversely 9. In this Order on Reconsideration, tracking system as well as the costs of
affect businesses with fewer than 25 the Commission clarifies its payphone a large audit liability. Small PSPs will
employees. This amendment only compensation rules in ways that will not be burdened by this ACA procedure
requires carriers to maintain the data an not have a significant economic impact because they will likely receive
additional 9 months and the cost and on a substantial number of small compensation for 100% of all
paperwork burden on carriers should be entities. As described below, the Order payphone-originated calls, regardless of
minimal. Furthermore, the amendment on Reconsideration essentially refines whether they are completed. For these
to § 64.1310(g) is in the public interest and builds upon the payphone reasons, we believe this clarification
because it will help to ensure that the compensation rules by clarifying certain will not impose a significant economic
data is available throughout the statute ambiguities in the rules and by impact on small entities.
of limitations period. We seek comment decreasing certain administrative 12. We also clarify that Completing
on this amendment. burdens on carriers. Carriers are only required to report
6. The Commission will send a copy 10. Specifically, we clarify the completed payphone calls and not
of the Order on Reconsideration, conditions that a payphone service uncompleted calls or the duration that
including a copy of this Final provider (PSP) may impose on an a circuit is kept open for such calls. In
Regulatory Flexibility Certification, in a alternative compensation arrangement the preceding Report and Order, the
report to Congress pursuant to the (ACA) between an interexchange carrier Commission had already placed
Congressional Review Act. In addition, (IXC) and a switch-based reseller (SBR). extensive requirements on carriers to
the Order on Reconsideration and this In the preceding Report and Order, the ensure that payment is based on
final certification will be sent to the rules give parties flexibility to agree to accurate data: they were obliged to
Chief Counsel for Advocacy of the SBA, ACAs to avoid compliance with any or create tracking systems, file System
and will be published in the Federal all of the payphone compensation rules. Audit Reports, create a dispute
Register. However, in this Order on resolution process, provide Completing
7. Final Regulatory Flexibility Reconsideration, we clarify that an ACA and Intermediate Carrier Reports, and
Certification. The Regulatory Flexibility may be posted on the web to give PSPs have their chief financial officer (CFO)
Act of 1980, as amended (RFA), requires adequate notice and time to object to the certify their quarterly payments. With
that a regulatory flexibility analysis be ACA. We also clarify that notice of respect to uncompleted and call
prepared for notice-and-comment termination may be placed on the web. duration, we find that the burden and

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722 Federal Register / Vol. 70, No. 3 / Wednesday, January 5, 2005 / Rules and Regulations

cost to carriers to report this information a LEC is responsible for compensation Alternative, Reconsideration filed by
outweigh any marginal, additional for calls made to access code numbers AT&T is granted, to the extent discussed
benefit to PSPs. By not adding or subscriber toll-free numbers that a herein.
additional costly reporting requirements LEC maintains. We do not impose any 23. It is further ordered that the
on carriers, this clarification instead additional responsibilities on LECs and Petition for Reconsideration and
confers a benefit on small SBRs. Since therefore the clarification will not have Clarification filed by the RBOC
no additional costs are being incurred or a significant economic impact on small Coalition is denied.
additional duties imposed on carriers, entities. 24. It is further ordered that the
this clarification adopted in this Order 16. This Order on Reconsideration Petition for Reconsideration filed by
on Reconsideration will not have a further clarifies and removes potentially Sprint is denied.
significant economic impact on small burdensome paperwork requirements 25. It is further ordered that the
entities. allowing the use of electronic methods Request for Stay filed by APCC is denied
13. The rules also extend the data to comply with our audit and CFO as moot.
retention requirement for completed call reporting requirements. First, we clarify 26. It is further ordered that for good
data from 18 months to 27 months, that system audit reports may be posted cause found, the rules set forth in
because the statute of limitations for on a website instead of requiring them Appendix B are effective January 5,
bringing lawsuits for payphone to be sent to as many as 5500 PSPs. 2005, except for § 64.1310(g) which
compensation is 24 months after the Second, these rules also clarify that a contains information collection
close of a calendar quarter, and because Completing Carrier CFO may certify the requirements that are not effective until
the PSPs need access to this data. carrier’s quarterly payments to all PSPs approved by the Office of Management
Although a number of small SBRs will in a single document and may post this and Budget. The Commission will
have to retain records for an additional certification on the web, instead of publish a document in the Federal
9 months, we believe the effect of this sending individualized certifications to Register announcing the effective date
revision will not be economically PSPs. The Commission believes that of that section.
significant. Carriers were already complying with the rules electronically 27. It is further ordered that the
required to retain this data for 18 is no more burdensome than submitting Commission’s Consumer and
months under the rules we adopted last copies. It will also be less expensive for Governmental Affairs Bureau, Reference
year and therefore the effect of this carriers to post the reports and Information Center, shall send a copy of
change will be minimal. As we explain certifications on the web rather than to this Order on Reconsideration,
in the Order on Reconsideration, no send paper copies to PSPs. Therefore, including the Final Regulatory
commenter provided any data to these clarifications will not have a Flexibility Certification, to the Chief
support its position that it would significant economic impact on small Counsel for Advocacy of the Small
unacceptably increase the cost for small entities. Business Administration.
entities. Should there be a minor 17. We also clarify that SBRs and
increase in costs, that burden is List of Subjects in 47 CFR Part 64
other Completing Carriers may rely on
outweighed by having the benefit of a a system audit of a payphone Telephone, Telecommunications.
more efficient record-keeping system. clearinghouse (instead of re-auditing the Federal Communications Commission.
14. To encourage consistency between clearinghouse themselves). We expect Marlene H. Dortch,
the various reports required by the that this clarification will benefit small Secretary.
payphone compensation rules, we also SBRs economically because they will
clarify that carriers should follow one of not have to pay for a separate audit of Final Rules
the standard industry formats the clearinghouse.
established by national clearinghouses. ■ For the reasons discussed in the
18. Therefore, we certify that the preamble, the Federal Communications
In this Order on Reconsideration, we do requirements of the Order on
not require carriers to follow a Commission amends 47 CFR part 64 as
Reconsideration will not have a follows:
particular format because we believe significant economic impact on a
that it is neither appropriate nor substantial number of small entities. PART 64—MISCELLANEOUS RULES
necessary for the Commission to make RELATING TO COMMON CARRIERS
up a format. Furthermore, parties did Ordering Clauses
not quantify the cost to update the 19. Accordingly, pursuant to authority ■ 1. The authority citation for part 64
reports. In the event a small SBR contained in sections 1, 4, and 276 of continues to read as follows:
decides to update the reports to meet the Communications Act of 1934, as Authority: 47 U.S.C. 154, 254(k); secs.
industry standards, we believe the cost amended, 47 U.S.C. 151, 154, and 276, 403(b)(2)(B), (c), Public Law 104–104, 110
to do so will be minimal and therefore it is ordered that the policies, rules, and Stat. 56. Interpret or apply 47 U.S.C. 201,
this clarification will not have a requirements set forth herein are 218, 225, 226, 228, and 254(k) unless
significant economic impact on small adopted. otherwise noted.
entities. 20. It is further ordered that part 64 ■ 2. Section 64.1310 is amended by
15. Similarly, the Commission’s of the Commission’s rules, 47 CFR part revising paragraphs (a) introductory text,
clarification concerning the 64, is amended by revising § 64.1310(a) (a)(3), (a)(4)(i) and paragraph (g) to read
responsibilities of local exchange and (g), and § 64.1320(a), (b), and (e) as as follows:
carriers (LECs) as Completing Carriers set forth in Appendix B to this Order on
does not significantly impact small Reconsideration. § 64.1310 Payphone compensation
entities. This clarification addresses a 21. It is further ordered that the procedures.
concern that some LECs who pay PSPs Petition for Clarification or Partial (a) Unless the payphone service
through bill credits are not Reconsideration filed by APCC is provider consents to an alternative
compensating PSPs when a PSP is not granted in part and denied in part, to compensation arrangement, each
served by the LEC or when the LEC acts the extent discussed herein. Completing Carrier identified in
as an IXC. In this Order on 22. It is further ordered that the § 64.1300(a) shall compensate the
Reconsideration, we simply clarify that petition for Clarification or, in the payphone service provider in

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Federal Register / Vol. 70, No. 3 / Wednesday, January 5, 2005 / Rules and Regulations 723

accordance with paragraphs (a)(1) independent third party auditor whose FEDERAL COMMUNICATIONS
through (a)(4) of this section. A responsibility shall be, using audit COMMISSION
payphone service provider may not methods approved by the American
unreasonably withhold its consent to an Institute for Certified Public 47 CFR Part 73
alternative compensation arrangement. Accountants, to determine whether the
* * * * * call tracking system accurately tracks [DA 04–3849; MM Docket No. 00–226; RM–
(3) When payphone compensation is payphone calls to completion. 10001]
tendered for a quarter, the chief (b) By the effective date of these rules,
financial officer of the Completing Radio Broadcasting Services; Fair
each Completing Carrier in paragraph
Carrier shall submit to each payphone Bluff, NC, Johnsonville, Litchfield
(a) of this section must file an audit
service provider to which compensation Beach, and Olanta, SC
report from the auditor (the ‘‘System
is tendered a sworn statement that the
Audit Report’’) regarding the AGENCY:Federal Communications
payment amount for that quarter is
accurate and is based on 100% of all Completing Carrier’s compliance with Commission.
completed calls that originated from § 64.1310(a)(1) as of the date of the
audit: ACTION: Final rule; dismissal of petition
that payphone service provider’s
(1) With the Commission’s Secretary for reconsideration.
payphones. Instead of transmitting
individualized statements to each in CC Docket No. 96–128;
payphone service provider, a SUMMARY: At the request of Joint
(2) With each payphone service Petitioner Waccamaw Neck
Completing Carrier may provide a provider for which it completes calls
single, blanket sworn statement Broadcasting Company, licensee of
and a Completing Carrier may comply Station WPDT(FM), Channel 286A,
addressed to all payphone service
with this paragraph’s requirement to file Johnsonville, South Carolina this
providers to which compensation is
copies of the System Audit Report with document dismisses the Joint Petition
tendered for that quarter and may notify
each payphone service provider by for Reconsideration of the Report and
the payphone service providers of the
sworn statement through any electronic posting the System Audit Report on its Order, 66 FR 18088 (October 24, 2001),
method, including transmitting the website or a clearinghouse website; and in this proceeding, filed by Atlantic
sworn statement with the § 64.1310(a)(4) (3) With each facilities-based long Broadcasting Co., Inc., permittee of
quarterly report, or posting the sworn distance carrier from which it receives Station WSIM(FM), Channel 287C3, Fair
statement on the Completing Carrier or payphone calls. Bluff, North Carolina, and Waccamaw
clearinghouse website. If a Completing * * * * * Neck Broadcasting Company.
Carrier chooses to post the sworn
statement on its website, the Completing (e) At the time of filing of a System FOR FURTHER INFORMATION CONTACT:
Carrier shall state in its § 64.1310(a)(4) Audit Report with the Commission, the Victoria M. McCauley, Media Bureau
quarterly report the web address of the Completing Carrier shall file with the (202) 418–2180.
sworn statement. Commission’s Secretary, the payphone
SUPPLEMENTARY INFORMATION: This is a
(4) * * * service providers and the facilities-
synopsis of the Commission’s
(i) A list of the toll-free and access based long distance carriers identified
Memorandum Opinion and Order, MM
numbers dialed and completed by the in paragraph (b) of this section, a
Docket No. 00–226, adopted December
Completing Carrier from each of that statement that includes the name of the
15, 2004, and released December 17,
payphone service provider’s payphones Completing Carrier, and the name,
2004. The full text of this Commission
and the ANI for each payphone; address and phone number for the
decision is available for inspection and
* * * * * person or persons responsible for
copying during normal business hours
(g) Each Completing Carrier and each handling the Completing Carrier’s
in the FCC’s Reference Information
Intermediate Carrier must maintain payphone compensation and for
Center at Portals II, 445 12th Street,
verification data to support the quarterly resolving disputes with payphone
SW., Room CY–A257, Washington, DC
reports submitted pursuant to service providers over compensation,
20554. The document may also be
paragraphs (a)(4) and (c) of this section and this statement shall be updated
for 27 months after the close of that purchased from the Commission’s
within 60 days of any changes of such
quarter. This data must include the time duplicating contractor, Best Copy and
persons. If a Completing Carrier chooses
and date that each call identified in Printing, Inc., Portals II, 445 12th Street,
to notify payphone service providers of
paragraphs (a)(4) and (c) of this section SW., Room CY–B402, Washington, DC
this statement and its System Audit 20554, telephone 1–800–378–3160 or
was made. This data must be provided Report by posting these two documents
to the payphone service provider upon http://www.BCPIWEB.com. Document is
on its website or a clearinghouse not subject to the Congressional Review
request. website, then this statement shall
■ 3. Section 64.1320 is amended by
Act. The Commission, is, therefore, not
include the web address for these two required to submit a copy of this Report
revising paragraphs (a), (b), and (e) to documents.
read as follows: and Order to GAO, pursuant to the
* * * * * Congressional Review Act, see 5 U.S.C.
§ 64.1320 Payphone call tracking system [FR Doc. 05–173 Filed 1–4–05; 8:45 am] 801(a)(1)(A) because the proposed rule
audits. BILLING CODE 6712–01–P was dismissed, herein.
(a) Unless it has entered into an Federal Communications Commission.
alternative compensation arrangement
pursuant to § 64.1310(a) that relieves it John A. Karousos,
of its § 64.1310(a)(1) tracking system Assistant Chief, Audio Division, Media
obligation, each Completing Carrier Bureau.
must undergo an audit of its [FR Doc. 05–116 Filed 1–4–05; 8:45 am]
§ 64.1310(a)(1) tracking system by an BILLING CODE 6712–01–P

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