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                            Before the
                Federal Communications Commission
                      Washington, D.C. 20554

In the Matters of                       )
                                   )
Petition to Amend Part 68                    )    
of the Commission's Rules                    )
to Include Terminal Equipment           )    CC Docket No. 93-268
Connected to Basic Rate Access               )
Service Provided via                         )
Integrated Services                     )
Digital Network Access Technology       )
                                   )
and                                )
                                   )
Petition to Amend Part 68 of the             )    
Commission's Rules to Include           )
Terminal Equipment Connected to              )
Public Switched Digital Service              )


                    ORDER ON RECONSIDERATION


   Adopted:  April 7, 1997              Released:  April 10, 1997

By the Commission:

                         I.  INTRODUCTION

    1.   On March 7, 1996, the Commission released a Report and Order adopting final rules
to amend Part 68 of the Commission's rules, to include Integrated Services Digital Network (ISDN)
and Public Switched Digital Service (PSDS) terminal equipment.  Part 68 governs the terms and
conditions under which customer-provided terminal equipment may be connected to the nation's telephone network without causing harm to the network.  Part 68 also provides rules
exempting certain equipment from the registration rules of Part 68.
    
    2.   In this Order, the Commission, on its own motion, amends the effective dates after
which new or modified equipment connected to the ISDN and the PSDS must comply with the Part
68 rules adopted in the ISDN Order.  Grandfathering unmodified equipment installed on or before
this date will permit an orderly implementation of new Part 68 rules by defining a transition period
during which  manufacturers and suppliers may use existing inventories without registering it under
Part 68.  For the reasons discussed below, we amend the dates defining grandfathered equipment
and thus provide Part 68 applicants 18 months to comply with the new registration requirements.

                         II.  DISCUSSION

    3.   In the ISDN Order, the Commission stated that equipment connected to the PSDS,
that was wired directly on or before January 1, 1996, may remain connected for its service life
without registration, unless modified.  The Commission further stated that new installation of
terminal equipment, including associated premises wiring, may occur until July 1, 1997, without
registration, if the terminal equipment is of a type directly connected to the PSDS as of January 1,
1996.  The terminal equipment may be connected and reconnected to the PSDS for its service life
without registration, unless the equipment is modified.  Under our rules, existing equipment can
continue to be used without being registered and thus is considered grandfathered.

    4.   Similarly, the Commission stated that equipment used for connection to ISDN Basic
Rate Access (BRA) or Primary Rate Access (PRA) connected before January 1, 1996, may remain
for its service life without registration, unless the equipment is modified.  We stated that new
terminal equipment, including premises wiring, may be installed up to July 1, 1997, without
registration.  Equipment installed on or before this date may remain connected and be reconnected
to ISDN BRA or PRA for its service life without registration, unless the equipment is modified. 
This equipment also is considered grandfathered.

    5.   Grandfather provisions are used to assure an orderly implementation of our equipment
registration program.  Generally, the Commission allows an 18-month transition period, that starts
on the date new rules become effective for equipment to become compliant with our registration
rules.  Because of unanticipated delays in publishing the ISDN Order in the Federal Register, the
transition period in this case has been greatly reduced.  To retain the 18-month period essential to
an orderly transition of equipment to the new requirements, the Commission is now modifying its
current rules to extend the time frame for equipment governed by the rules adopted in the ISDN
Order.  The dates January 1, 1996 and July 1, 1997, are thus changed to November 13, 1996 and
May 13, 1998, respectively.  Consequently, equipment connected by November 13, 1996 will be
considered grandfathered and not subject to our registration rules under Part 68.

    6.   The new dates we prescribe have been calculated to ensure a "transition period during
which various manufacturers and suppliers may use their existing inventories and bring their
equipment into compliance with [Commission] rules."  While some suppliers and manufacturers
may comply with registration requirements for equipment more quickly than our rules require, the
new time frame comports with Commission practice of allowing a reasonable interval for achieving
compliance.  We conclude that the period for grandfathering will assist parties in an orderly
transition to the new rule.

    7.   Accordingly, IT IS ORDERED that, pursuant to Sections 4(i), 4(j), and 303(r), of the
Communication Act of 1934, as amended, 47 U.S.C. Section 154(i), 154(j), and 303(r), the Part 68
rule modifications contained in Appendix A ARE ADOPTED.
    



                             FEDERAL COMMUNICATIONS COMMISSION
                                  



                             William F. Caton
                             Acting SecretaryAPPENDIX A                

Title 47 the Code of Federal Regulations, Part 68 is amended as follows:

PART 68-CONNECTION OF TERMINAL EQUIPMENT TO THE TELEPHONE NETWORK 
1.  The authority citation for Part 68 is amended to read as follows:
Authority:  47 U.S.C. 154, 303.

2.  Sections 68.2(j) and 68.2(k) are amended by revising paragraphs (j)(1), (j)(2), (k)(1), and (k)(2)
to read:

 68.2 Scope

* * * * *

(j)  * * *

(1)  Terminal equipment, including its premises wiring directly connected to PSDS (Type I, II or III)
on or before November 13, 1996, may remain for service life without registration, unless
subsequently modified.  Service life means the life of the equipment until retired from service. 
Modification means changes to the equipment that affect compliance with Part 68 rules.

(2)  New installation of terminal equipment, including its premises wiring, may occur until May 13,
1998, without registration of any terminal equipment involved, provided that the terminal equipment
is of a type directly connected to PSDS (Type I, II or III) as of November 13, 1996.  This terminal
equipment may remain connected and be reconnected to PSDS (Type I, II or III) for service life
without registration unless subsequently modified.
 
(k) * * *

(1)  Terminal equipment, including premises wiring directly connected to ISDN BRA or PRA on
November 13, 1996, may remain connected to ISDN BRA or PRA for service life without
registration, unless subsequently modified.

(2)  New installation of terminal equipment, including premises wiring, may occur until May 13,
1998, without registration of any terminal equipment involved, provided that the terminal equipment
is of a type directly connected to ISDN BRA or PRA as of November 13, 1996.  This terminal
equipment may remain connected and be reconnected to ISDN BRA or PRA for service life without
registration unless subsequently modified.

* * * * *