Federal Register / Vol. 62, No. 157 / Thursday, August 14, 1997 / Rules and Regulations 43477

Section II. Adjustment Criteria for

Section 503 Forfeitures

Upward Adjustment Criteria

(1) Egregious misconduct.

(2) Ability to pay/relative

disincentive.

(3) Intentional violation.

(4) Substantial harm.

(5) Prior violations of any FCC

requirements.

(6) Substantial economic gain.

(7) Repeated or continuous violation.

Downward Adjustment Criteria

(1) Minor violation.

(2) Good faith or voluntary disclosure.

(3) History of overall compliance.

(4) Inability to pay.

Section III. Non-Section 503 Forfeitures

That Are Affected by the Downward

Adjustment Factors

Unlike Section 503 of the Act, which

establishes maximum forfeiture

amounts, other sections of the Act, with

one exception, state prescribed amounts

of forfeitures for violations of the

relevant section. These amounts are

then subject to mitigation or remission

under Section 504 of the Act. The one

exception is Section 223 of the Act,

which provides a maximum of $50,000

per day. For convenience, the

Commission will treat the $50,000 set

forth in Section 223 as if it were a

prescribed base amount, subject to

downward adjustments. The following

amounts were adjusted for inflation

pursuant to the Debt Collection

Improvement Act of 1996 (DCIA) Public

Law 104–134, section 31001, 110 Stat

1321 (1996). The new amounts became

effective on March 5, 1997. These nonSection 503 forfeitures may be adjusted

downward using the ‘‘Downward

Adjustment Criteria’’ shown for Section

503 forfeitures in Section II of this note.

Violation Statutory amount

($)

Sec. 202(c) Common Carrier Discrimination ...................................................................................................................... 6,600 330/day.

Sec. 203(e) Common Carrier Tariffs ................................................................................................................................... 6,600 330/day.

Sec. 205(b) Common Carrier Prescriptions ........................................................................................................................ 13,200.

Sec. 214(d) Common Carrier Line Extensions ................................................................................................................... 1,200/day.

Sec. 219(b) Common Carrier Reports ................................................................................................................................ 1,200.

Sec. 220(d) Common Carrier Records & Accounts ............................................................................................................ 6,600/day.

Sec. 223(b) Dial-a-Porn ...................................................................................................................................................... 55,000 maximum/day.

Sec. 364(a) Ship Station Inspection ................................................................................................................................... 5,500 (owner).

Sec. 364(b) Ship Station Inspection ................................................................................................................................... 1,100 (vessel master).

Sec. 386(a) Forfeitures ....................................................................................................................................................... 5,500/day (owner).

Sec. 386(b) Forfeitures ....................................................................................................................................................... 1,100 (vessel master).

Sec. 634 Cable EEO ........................................................................................................................................................... 500/day.

* * * * *

[FR Doc. 97–21115 Filed 8–13–97; 8:45 am]

BILLING CODE 6712–01–P

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 64

[CC Docket 94–129; FCC 97–248]

Unauthorized Changes of Consumer’s

Long Distance Carriers

AGENCY: Federal Communications

Commission.

ACTION: Final rule.

SUMMARY: The Commission adopted a

combined Further Notice of Proposed

Rule Making and Memorandum

Opinion and Order on Reconsideration

which amends the Commission’s rules

and policies governing the unauthorized

switching of subscribers’ primary

interexchange carriers (PICs), an activity

more commonly known as ‘‘slamming.’’

In the Order on Reconsideration, the

Commission disposes of six petitions for

reconsideration of its 1995 Report and

Order, and amends its rules regarding

changes in subscribers’ long distance

carriers in three respects. The

Commission’s decision is intended to

deter and ultimately eliminate

unauthorized changes in subscribers’

long distance carriers.

EFFECTIVE DATE: January 12, 1998 except

for § 64.1150 which will become

effective upon approval by the Office of

Management and Budget. The

Commission will publish a document at

a later date announcing the effective

date.

FOR FURTHER INFORMATION CONTACT:

Cathy Seidel, Enforcement Division,

Common Carrier Bureau (202) 418–

0960.

SUPPLEMENTARY INFORMATION: This is a

summary of the Commission’s

Memorandum Opinion and Order on

Reconsideration in CC Docket No. 94–

129 [FCC 97–248], adopted on July 14,

1997 and released on July 15, 1997. The

full text of the Order on Reconsideration

is available for inspection and copying

during normal business hours in the

FCC Reference Center, Room 239, 1919

M Street, N.W., Washington, D.C. The

complete text of this decision may also

be purchased from the Commission’s

duplicating contractor, International

Transcription Services, 1231 20th

Street, N.W., Washington, D.C.

Summary of Memorandum Opinion

and Order on Reconsideration

I. Background

1. The Commission first established

safeguards to deter slamming when

equal access was implemented in 1985.

By 1992, because the interexchange

market had become more competitive,

the need for additional safeguards to

deter slamming increased. Therefore,

the Commission adopted rules requiring

that all IXCS institute one of four

verification procedures before

submitting a carrier change request

generated through telemarketing on

behalf of a customer. 7 FCC Rcd 1038

(1992), recon. denied, 8 FCC Rcd 3215

(1993). In 1994, the Commission on its

own motion and in response to

continuing complaints from subscribers

regarding slamming, instituted a rule

making and adopted rules in its 1995

Report and Order 10 FCC Rcd 9560, 60

FR 35846 (July 12, 1995), establishing

further anti-slamming safeguards to

deter misleading letters of agency

(LOAs). A LOA is a document signed by

a subscriber which states that a
43478 Federal Register / Vol. 62, No. 157 / Thursday, August 14, 1997 / Rules and Regulations

particular carrier has been selected as

that subscriber’s preferred carrier.

Despite the Commissions anti-slamming

efforts, the number of written slamming

complaints received by the Commission

in 1995 was 11,278, which represents a

six-fold increase over the number of

such complaints received in 1993. That

number has continued to rise; over

16,000 such complaints were received

in 1996. Shortly after, the adoption of

the 1995 Report and Order the

Commission, on its own motion, stayed

its 1995 Report and Order insofar as it

extends the PIC-change verification

requirements set forth in § 64.1100 of

the Commission’s rules to consumerinitiated or in-bound telemarketing

calls. The stay was imposed before the

effective date of the 1995 Report and

Order. The consumer-initiated or inbound telemarketing provision is the

only component of its anti-slamming

rules that the Commission stayed. The

stay of this provision of the 1995 Report

and Order remains in effect.

II. Discussion

2. Six parties filed petitions for

reconsideration of the Commission’s

1995 Report and Order. Allnet sought

clarification or, in the alternative,

reconsideration of the language in

§ 64.1150(e)(4) to reflect the terms

‘‘interLATA’’ and ‘‘intraLATA’’ instead

of ‘‘interstate’’ and ‘‘intrastate,’’

respectively. AT&T, MCI and Sprint

sought reconsideration and reversal of

the Commission’s decision to extend

PIC-change verification requirements to

consumer-initiated calling. MCI also

sought reconsideration of the

Commission’s decision to permit the use

of LOAs that double as checks. Frontier

sought reconsideration of the

Commission’s LOA rules, maintaining

that the rules should not apply to

consumers who have executed written

contracts to obtain an IXC’s services.

Finally, NAAG sought reconsideration

of several aspects of the 1995 Report

and Order. Specifically, NAAG urged

the Commission: (1) To eliminate, as a

general rule, any liability for consumers

if the switching IXC cannot document

that the consumer authorized the switch

in accordance with the law; (2) to

modify § 64.1150 to require that: (a)

LOAs be on a document separate from

any promotional material, not just

separable by a perforation; (b) combined

check/LOAs be prohibited, unless

additional safeguards are required; (c) if

an LOA is provided in connection with

any promotion, all or part of which is

in a language other than English, the

LOA must also be provided in that other

language; and (d) any promotion in

which any inducements to switch long

distance service are in a language other

than English, must contain a full

explanation and make all disclosures in

each language used to make the

inducements; and (3) to modify

§ 64.1100(d)(8) to eliminate the negative

option in accordance with paragraph 11

of the 1995 Report and Order and

§ 64.1150(f).

3. The Commission modifies its rules

regarding changes in subscribers’ long

distance carriers in three respects. First,

the Commission modifies § 64.1150(g) to

clarify that carriers using letters of

agency (LOAs) must fully translate their

LOAs into the same language(s) as their

associated promotional materials or oral

descriptions and instructions. Second,

the Commission modifies

§ 64.1150(e)(4) to incorporate the terms

interLATA and intraLATA, as well as

interstate and intrastate, in order to

remove possible confusion or

uncertainty about the scope of the

Commission’s rules, which are generally

relevant to all jurisdictions. Third, the

Commission modifies § 64.1100(a) to

clarify that carriers must confirm change

orders for long distance service

generated by telemarketing using only

one of the four verification options of

§ 64.1100. Aside from these

modifications and seeking further

comment in the accompanying Further

Notice of Proposed Rule Making, the

Commission otherwise declines to adopt

the positions urged by petitioners.

III. Final Regulatory Flexibility Analysis

4. As required by section 603 of the

Regulatory Flexibility Act (RFA), 5

U.S.C. 603, an Initial Regulatory

Flexibility Analysis (IRFA) was

incorporated in the Notice of Proposed

Rule Making (NPRM) in the Policies and

Rules Concerning Unauthorized

Changes of Consumers’ Long Distance

Carrier, 9 FCC Rcd. 6885 (1994). The

Commission sought written public

comment on the proposals in the NPRM,

including on the IRFA. The

Commission’s Final Regulatory

Flexibility Analysis (FRFA) in this

Memorandum Opinion and Order on

Reconsideration conforms to the RFA,

as amended by the Small Business

Regulatory Enforcement Fairness Act of

1996 (SBREFA), Public Law 104–121,

110 Stat. 847 (1996), codified as Title II

of the Contract With America

Advancement Act of 1996 (CWAAA), 5

U.S.C. 601 et seq.

i. Need for and Objectives of This

Memorandum Opinion and Order on

Reconsideration and the Rules Adopted

Herein

5. The Commission adopts in the

Order on Reconsideration rules that: (1)

Modify § 64.1150(g) to clarify that

interexchange carriers (IXCs) using

LOAs must fully translate their LOAs

into the same language(s) as their

associated promotional materials, oral

descriptions and instructions; (2)

modify § 64.1150(e)(4) to incorporate

the terms ‘‘interLATA and intraLATA,’’

as well as ‘‘interstate and intrastate’’;

and (3) modify § 64.1100(a) to clarify

that IXCs must employ only one of the

four verification options in § 64.1100 to

verify subscriber change orders

generated by telemarketing. The

objectives of the rules adopted in this

Order on Reconsideration are to provide

adequate safeguards to protect

subscribers from unauthorized

switching of their long distance carriers

and to encourage full and fair

competition among telecommunications

carriers in the marketplace.

ii. Summary and Analysis of the

Significant Issues Raised by the Public

Comments in Response to the IRFA

6. In the IRFA, the Commission found

that the rules it proposed to adopt in

this proceeding may have a significant

impact on a substantial number of small

businesses as defined by section 601(3)

of the RFA. Specifically, small entities

may feel some economic impact in

additional printing costs due to the new

requirement that IXCs must fully

translate their LOAs into the same

language(s) as their associated

promotional materials, oral descriptions

and instructions under § 64.1150(g). The

IRFA solicited comment on alternatives

to proposed rules that would minimize

the impact on small entities consistent

with the objectives of this proceeding.

Although the Commission has requested

further comment on a number of these

rules, the Commission received no

comment(s) on the potential impact on

small business entities with respect to

the rules the Commission adopted in

this Order on Reconsideration.

iii. Description and Estimates of the

Number of Small Entities to Which the

Rules Adopted in the Memorandum

Order and Opinion on Reconsideration

in CC Docket No. 94–129 Will Apply

7. For the purposes of this analysis,

the Commission examined the relevant

definition of ‘‘small entity’’ or ‘‘small

business’’ and applied this definition to

identify those entities that may be

affected by the rules adopted in this

Order on Reconsideration. The RFA

defines a ‘‘small business’’ to be the

same as a ‘‘small business concern’’

under the Small Business Act, 15 U.S.C.

632, unless the Commission has

developed one or more definitions that

are appropriate to its activities. Under
Federal Register / Vol. 62, No. 157 / Thursday, August 14, 1997 / Rules and Regulations 43479

the Small Business Act, a ‘‘small

business concern’’ is one that: (1) Is

independently owned and operated; (2)

is not dominant in its field of operation;

and (3) meets any additional criteria

established by the Small Business

Administration (SBA). Moreover, the

SBA has defined a small business for

Standard Industrial Classification (SIC)

categories 4812 (Radiotelephone

Communications) and 4813 (Telephone

Communications, Except

Radiotelephone) to be small entities

when they have fewer than 1,500

employees.

Telephone Companies (SIC 4813)

8. Total Number of Telephone

Companies Affected. The decisions and

rules adopted by the Commission may

have a significant effect on a substantial

number of small telephone companies

identified by the SBA. The United

States Bureau of the Census (Census

Bureau) reports that, at the end of 1992,

there were 3,497 firms engaged in

providing telephone service, as defined

therein, for at least one year. This

number contains a variety of different

categories of carriers, including local

exchange carriers (LECs), IXCs,

competitive access providers (CAPs),

cellular carriers, mobile service carriers,

operator service providers (OSPs), pay

telephone operators, PCS providers,

covered SMR providers, and resellers. It

seems certain that some of those 3,497

telephone service firms are not IXCs, or

may not qualify as small entities

because they are not ‘‘independently

owned and operated.’’ For example, a

PCS provider that is affiliated with an

IXC having more than 1,500 employees

would not meet the definition of a small

business. It seems reasonable to

conclude, therefore, that fewer than

3,497 telephone service firms are small

entity IXCs that may be affected by this

Order on Reconsideration.

9. Wireline Carriers and Service

Providers. The SBA has developed a

definition of small entities for

telecommunications companies other

than radiotelephone (wireless)

companies (Telephone

Communications, Except

Radiotelephone). The Census Bureau

reports that there were 2,321 such

telephone companies in operation for at

least one year at the end of 1992.

According to the SBA definition, a small

business telephone company other than

a radiotelephone company is one

employing fewer than 1,500 persons. Of

the 2,321 non-radiotelephone

companies listed by the Census Bureau,

2,295 companies (or, all but 26) were

reported to have fewer than 1,000

employees. Thus, at least 2,295 nonradiotelephone companies might qualify

as small incumbent LECs or small

entities based on these employment

statistics. However, because it seems

certain that some of these carriers are

not independently owned and operated,

this figure necessarily overstates the

actual number of non-radiotelephone

companies that would qualify as ‘‘small

business concerns’’ under the SBA

definition. Moreover, although the rules

adopted herein apply only to IXCs, this

figure includes entities other than IXCs.

Consequently, the Commission

estimates using this methodology that

there are fewer than 2,295 small entity

telephone communications companies

(other than radiotelephone companies)

that may be affected by the proposed

decisions and rules and seeks comment

on this conclusion.

10. Non-LEC wireline carriers. Next

the Commission estimates the number

of non-LEC wireline carriers, including

IXCs, CAPs, OSPs, Pay Telephone

Operators, and resellers that may be

affected by these rules. Because neither

the Commission nor the SBA has

developed definitions for small entities

specifically applicable to these wireline

service types, the closest applicable

definition under the SBA rules for all

these service types is for telephone

communications companies other than

radiotelephone (wireless) companies.

However, the TRS data provides an

alternative source of information

regarding the number of IXCs, CAPs,

OSPs, Pay Telephone Operators, and

resellers nationwide. According to the

Commission’s most recent data: 130

companies reported that they are

engaged in the provision of

interexchange services; 57 companies

reported that they are engaged in the

provision of competitive access services;

25 companies reported that they are

engaged in the provision of operator

services; 271 companies reported that

they are engaged in the provision of pay

telephone services; and 260 companies

reported that they are engaged in the

resale of telephone services and 30

reported being ‘‘other’’ toll carriers.

Although it seems certain that some of

these carriers are not independently

owned and operated, or have more than

1,500 employees, the Commission is

unable at this time to estimate with

greater precision the number of IXCs,

CAPs, OSPs, Pay Telephone Operators,

and resellers that would qualify as small

business concerns under SBA’s

definition. Firms filing TRS Worksheets

are asked to select a single category that

best describes their operation. As a

result, some long distance carriers

describe themselves as resellers, some

as OSPs, some as ‘‘other,’’ and some

simply as IXCs. Consequently, the

Commission estimates that there are

fewer than 130 small entity IXCs; 57

small entity CAPs; 25 small entity OSPs;

271 small entity pay telephone service

providers; and 260 small entity

providers of resale telephone service;

and 30 ‘‘other’’ toll carriers that might

be affected by the rules proposed in this

Order on Reconsideration.

11. Radiotelephone (Wireless)

Carriers. The SBA has developed a

definition of small entities for Wireless

(Radiotelephone) Carriers. The Census

Bureau reports that there were 1,176

such companies in operation for at least

one year at the end of 1992. According

to the SBA definition, a small business

radiotelephone company is one

employing fewer than 1,500 persons.

The Census Bureau also reported that

1,164 of those radiotelephone

companies had fewer than 1,000

employees. Thus, even if all of the

remaining 12 companies had more than

1,500 employees, there would still be

1,164 radiotelephone companies that

might qualify as small entities if they

are independently owned and operated.

Although it seems certain that some of

these carriers are not independently

owned and operated, the Commission is

unable to estimate with greater

precision the number of Radiotelephone

Carriers and service providers that

would qualify as small business

concerns under SBA’s definition. The

Commission is also unable to estimate

how many of these entities are IXCs.

Consequently, the Comission estimates

that there are fewer than 1,164 small

entity radiotelephone companies that

might be affected by the rules proposed

in this Order on Reconsideration.

12. Cellular and Mobile Service

Carriers. In an effort to further refine its

calculation of the number of

radiotelephone companies affected by

the rules adopted herein, the

Commission considers the categories of

radiotelephone carriers, Cellular Service

Carriers and Mobile Service Carriers.

Neither the Commission nor the SBA

has developed a definition of small

entities specifically applicable to

Cellular Service Carriers and to Mobile

Service Carriers. The closest applicable

definition under SBA rules for both

services is for telephone companies

other than radiotelephone (wireless)

companies. The most reliable source of

information regarding the number of

Cellular Service Carriers and Mobile

Service Carriers nationwide of which

the Commission is aware appears to be

the data that it collects annually in

connection with the TRS. According to

the Commission’s most recent data, 792
43480 Federal Register / Vol. 62, No. 157 / Thursday, August 14, 1997 / Rules and Regulations

companies reported that they are

engaged in the provision of cellular

services and 138 companies reported

that they are engaged in the provision of

mobile services. Although it seems

certain that some of these carriers are

not independently owned and operated,

or have more than 1,500 employees, the

Commission is unable at this time to

estimate with greater precision the

number of Cellular Service Carriers and

Mobile Service Carriers that would

qualify as small business concerns

under SBA’s definition. The

Commission is also unable to estimate

how many of these entities are IXCs.

Consequently, the Commission

estimates that there are fewer than 792

small entity Cellular Service Carriers

and fewer than 138 small entity Mobile

Service Carriers that might be affected

by the rules proposed in this Order on

Reconsideration.

13. Broadband PCS Licensees. In an

effort to further refine our calculation of

the number of radiotelephone

companies affected by the rules adopted

herein, the Commission considers the

category of radiotelephone carriers,

Broadband PCS Licensees. The

broadband PCS spectrum is divided into

six frequency blocks designated A

through F. As set forth in 47 CFR

24.720(b), the Commission has defined

‘‘small entity’’ in the auctions for Blocks

C and F as a firm that had average gross

revenues of less than $40 million in the

three previous calendar years. For Block

F, an additional classification for ‘‘very

small business’’ was added and is

defined as an entity that, together with

its affiliates, has average gross revenues

of not more than $15 million for the

preceding three calendar years. The

Commission’s definition of a ‘‘small

entity’’ in the context of broadband PCS

auctions has been approved by SBA.

The Commission has auctioned

broadband PCS licenses in Blocks A

through F. The Commission does not

have sufficient data to determine how

many small businesses bid successfully

for licenses in Blocks A and B. There

were 183 winning bidders that qualified

as small entities in the Blocks C, D, E,

and F auctions. The Commission is

unable to estimate how many of these

entities are IXCs. Based on this

information, the Commission concludes

that the number of broadband PCS

licensees in Blocks C through F that

might be affected by the rules proposed

in this Order on Reconsideration

includes, at most, the 183 winning

bidders that qualified as small entities

in the Blocks C through F broadband

PCS auctions.

14. SMR Licensees. Pursuant to 47

CFR 90.814(b)(1), the Commission has

defined ‘‘small entity’’ in auctions for

geographic area 800 MHz and 900 MHz

SMR licenses as a firm that had average

annual gross revenues of less than $15

million in the three previous calendar

years. This definition of a ‘‘small entity’’

in the context of 800 MHz and 900 MHz

SMR has been approved by the SBA.

The rules adopted in this Order on

Reconsideration may apply to SMR

providers in the 800 MHz and 900 MHz

bands that either hold geographic area

licenses or have obtained extended

implementation authorizations. The

Commission does not know how many

IXCs provide 800 MHz or 900 MHz

geographic area SMR service pursuant

to extended implementation

authorizations, nor how many of these

providers have annual revenues of less

than $15 million. The Commission

assumes, for purposes of this FRFA, that

all of the extended implementation

authorizations may be held by IXCs that

are small entities, which may be

affected by the decisions and rules

adopted in this Order on

Reconsideration.

15. The Commission completed its

auctions for geographic area licenses in

the 900 MHz SMR band on April 15,

1996. There were 60 winning bidders

who qualified as small entities in the

900 MHz auction. The Commission is

unable to estimate how many of these

entities are IXCs. Based on this

information, the Commission concludes

that the number of geographic area SMR

licensees that may be affected by the

rules adopted in this Order on

Reconsideration includes, at most, these

60 small entities. No auctions have been

held for 800 MHz geographic area SMR

licenses. Therefore, no small entities

currently hold these licenses. A total of

525 licenses will be awarded for the

upper 200 channels in the 800 MHz

geographic area SMR auction. However,

the Commission has not yet determined

how many licenses will be awarded for

the lower 230 channels in the 800 MHz

geographic area SMR auction. There is

no basis, moreover, on which to

estimate how many small entities will

win these licenses, or how many of

these entities will be IXCs. Given that

nearly all radiotelephone companies

have fewer than 1,000 employees and

that no reliable estimate of the number

of prospective 800 MHz licensees can be

made, the Commission assumes, for

purposes of this FRFA, that all of the

licenses may be awarded to IXCs that

are small entities which, thus, may be

affected by the decisions in this Order

on Reconsideration.

iv. Summary of Projected Reporting,

Recordkeeping and Other Compliance

Requirements

16. The Commission, in this Order on

Reconsideration, (1) directs carriers that

use LOAs to fully translate their LOAs

into the same language(s) as their

associated promotional materials, oral

descriptions and instructions; (2)

modifies § 64.1150(e)(4) of its rules to

incorporate the terms ‘‘interLATA’’ and

‘‘intraLATA,’’ as well as ‘‘interstate’’

and ‘‘intrastate’’; and (3) clarifies that

IXCs must employ only one of the four

options in § 64.1100 to verify subscriber

change orders generated by

telemarketing. The Commission has

determined that compliance with these

provisions may require carriers to

modify their marketing and advertising

materials.

v. Steps Taken To Minimize the

Significant Economic Impact of This

Memorandum Opinion and Order on

Small Entities and Small Incumbent

LECs, Including the Significant

Alternatives Considered and Rejected

17. After consideration of potential

alternatives, the Commission

determined that the requirement that

carriers translate LOAs into the same

language as their associated promotional

materials or oral descriptions and

instructions may have a significant

impact on a substantial number of small

businesses as defined by section 601(3)

of the RFA. Specifically, small entities

may feel some economic impact in

additional printing costs due to the new

requirement under § 64.1150(g).

Nevertheless, the overwhelming

majority of commenters supported the

Commission’s adoption of this rule,

without providing specific comment

regarding the economic impact to small

entities or alternatives to lessen the

economic impact. Moreover, because

the rules will not take effect for one

hundred fifty (150) days, the

Commission believes all IXCs, large and

small, will have sufficient advance time

to revise and print new LOAs, if

necessary. By enacting this rule, the

Commission is only requiring that IXCs

using LOAs ensure that the language of

their promotional material matches that

which authorizes a change in subscriber

service. The Commission believes that

even if the economic impact is

significant to some small entities, the

benefit of protecting non-English

speaking consumers from being mislead

by language that they may not fully

understand is consistent with the stated

objectives, and thus justifies any

increase in printing costs.
Federal Register / Vol. 62, No. 157 / Thursday, August 14, 1997 / Rules and Regulations 43481

18. The Commission determined that

the rule incorporating the terms

‘‘interLATA and intraLATA’’ as well as

‘‘interstate and intrastate’’ contained in

this Order on Reconsideration will not

impose any additional requirements on

IXCs. These terms were incorporated

only to remove possible confusion or

uncertainty as to the scope of our rules

as pertaining to all jurisdictions.

Likewise, the rule clarifying that IXCs

must employ only one verification

option will not impose any additional

requirements on IXCs. Therefore,

adoption of these rules should have

little or no economic impact on small

entities. Because the Commission

concludes that adoption of these rules

will cause little or no economic impact

on small entities, the Commission has

identified no significant alternatives,

nor were any offered by parties

commenting on the IRFA.

vi. Report to Congress

19. The Commission shall send a copy

of this FRFA, along with this

Memorandum Opinion and Order on

Reconsideration, in a report to Congress

pursuant to the Small Business

Regulatory Enforcement Fairness Act of

1996, 5 U.S.C. 801(a)(1)(A). A copy of

this FRFA will also be published in the

Federal Register.

IV. Conclusion

20. The Commission reaffirms, with

minor modifications, its verification

procedures adopted in the 1995 Report

and Order. The Commission’s stay of its

1995 Report and Order, insofar as it

extends the PIC-change verification

requirements set forth in § 64.1100 of

the Commission rules to consumerinitiated or in-bound telemarketing

calls, remains in effect.

V. Ordering Clauses

21. It is ordered that, pursuant to

Sections 1, 4, 201–205, 215, 218, 220

and 258 of the Communications Act of

1934, as amended, 47 U.S.C. 151, 154,

201–205, 215, 218, 220, and 258, the

Petitions for Reconsideration of Allnet

Communication Services, Inc., AT&T

Corporation, Frontier Communications

International, Inc., MCI

Telecommunications Corporation,

National Association of Attorneys

General, and Sprint Communications

Company Are granted to the extent

described herein and Are denied in all

other respects.

22. It is further ordered that the

Petition for Clarification of the

Telecommunications Resellers

Association is granted to the extent

described herein and is denied in all

other respects.

23. It is further ordered that 47 CFR

Part 64 is amended as set forth below.

24. It is further ordered that the

policies, rules and requirements set

forth below in this memorandum

opinion and order on reconsideration

are effective January 12, 1998 except for

section 64.1150 which will become

effective upon approval by the Office of

Management and Budget. The

Commission will publish a document at

a later date announcing the effective

date.

List of Subjects in 47 CFR Part 64

Communications common carriers,

Consumer protection,

Telecommunications.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

Rule Changes

47 CFR part 64 is amended as follows:

1. The authority citation for part 64

continues to read as follows:

Authority: Sec. 4, 48 Stat. 1066, as

amended; 47 U.S.C. 154, unless otherwise

noted. Interpret or apply secs. 201, 218, 226,

228, 48 Stat. 1070, as amended, 1077; 47

U.S.C. 201, 218, 226, 228, unless otherwise

noted.

2. Section 64.1100(a) is revised to

read as follows:

§ 64.1100 Verification of orders for long

distance service generated by

telemarketing.

* * * * *

(a) The IXC has obtained the

customer’s written authorization in a

form that meets the requirements of

§ 64.1150;

* * * * *

3. Section 64.1150(e)(4) is revised to

read as follows:

§ 64.1150 Letter of agency form and

content.

* * * * *

(e) * * *

(4) That the subscriber understands

that only one interexchange carrier may

be designated as the subscriber’s

interstate or interLATA primary

interexchange carrier for any one

telephone number. To the extent that a

jurisdiction allows the selection of

additional primary interexchange

carriers (e.g., for intrastate, intraLATA

or international calling), the letter of

agency must contain separate statements

regarding those choices. Any carrier

designated as a primary interexchange

carrier must be the carrier directly

setting the rates for the subscriber. One

interexchange carrier can be both a

subscriber’s interstate or interLATA

primary interexchange carrier and a

subscriber’s intrastate or intraLATA

primary interexchange carrier; and

* * * * *

4. Section 64.1150(g) is revised to

read as follows:

§ 64.1150 Letter of agency form and

content.

* * * * *

(g) If any portion of a letter of agency

is translated into another language, then

all portions of the letter of agency must

be translated into that language. Every

letter of agency must be translated into

the same language as any promotional

materials, oral descriptions or

instructions provided with the letter of

agency.

[FR Doc. 97–21527 Filed 8–13–97; 8:45 am]

BILLING CODE 6712–01–P

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 68

[CC Docket No. 87–124; FCC 97–242]

Access to Telecommunications

Equipment and Services by Persons

With Disabilities (Hearing Aid

Compatibility)

AGENCY: Federal Communications

Commission.

ACTION: Final rule.

SUMMARY: This action amends

Commission rules regarding HAC,

which would have required all

telephones manufactured or imported

for use in the United States after

November 1, 1998 to contain a volume

control feature. Under the amended

rules, this compliance date is extended

to January 1, 2000. Furthermore, the

Commission has made conforming

amendments to its hearing aid

compatibility rules so that workplaces,

hotels and motels, and confined settings

(e.g, hospitals and nursing homes) will

not be required to ensure that new or

replacement telephones contain a

volume control feature until January 1,

2000, parallel with the manufacturing

requirements. This action was taken in

response to a petition for

reconsideration filed by the Consumer

Electronics Manufacturers Association

(CEMA).

EFFECTIVE DATE: September 15, 1997.

FOR FURTHER INFORMATION CONTACT:

Andy Firth, Attorney, 202/418–1898,

Fax 202/418–2345, TTY 202/418–2224,

afirth@fcc.gov, Network Services

Division, Common Carrier Bureau.

SUPPLEMENTARY INFORMATION: This

summarizes the Commission’s Order on