26796 Federal Register / Vol. 66, No. 94 / Tuesday, May 15, 2001 / Rules and Regulations

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Parts 2 and 87

[WT Docket No. 00–77; FCC 01–122]

Accommodation of Advanced Digital

Communications in the 117.975–137

MHz Frequency Band and

Implementation of Flight Information

Services in the 136–137 MHz

Frequency Band

AGENCY: Federal Communications

Commission.

ACTION: Final rule.

SUMMARY: This document amends the

Commission’s rules to (1) permit the

Federal Aviation Administration (FAA)

to use five additional channels in the

136–136.475 MHz frequency band; (2)

authorize the implementation of Flight

Information Services-Broadcast (FIS–B)

in the 136–137 MHz band; (3)

accommodate digital communications

systems throughout the 117.975–137

MHz aeronautical radio spectrum; and

(4) clarify that five channels previously

reserved for special purpose

aeronautical enroute operations in the

Gulf of Mexico Region—136.775 MHz,

136.800 MHz, 136.825 MHz, 136.850

MHz and 136.875 MHz—are no longer

so reserved, and thus may be licensed

for general purpose aeronautical enroute

operations without geographical

limitation. The Commission has

adopted these amendments in response

to petitions for rulemaking filed by the

Small Aircraft Manufacturers

Association and the FAA, respectively,

requesting that the Commission amend

its rules to permit the implementation of

FIS–B and other digital communications

systems, and in response to comments

on those petitions by Aeronautical

Radio, Inc. and other organizations

representing the aviation industry.

These rule amendments will enhance

the safety of aviation by alleviating

spectrum congestion in the aeronautical

radio frequency bands and by paving

the way for the introduction of FIS–B

and other new digital communications

services.

EFFECTIVE DATE: Effective June 14, 2001.

FOR FURTHER INFORMATION CONTACT:

Jeffrey Tobias, Wireless

Telecommunications Bureau at (202)

418–0680.

SUPPLEMENTARY INFORMATION:

1. This is a summary of the

Commission’s Report and Order (R&O),

FCC 01–122, adopted on April 5, 2001,

and released on April 13, 2001. The full

text of this R&O is available for

inspection and copying during normal

business hours in the FCC Reference

Center, Room CY–A257, 445 12th Street,

S.W., Washington, D.C. 20554. The

complete text may be purchased from

the Commission’s copy contractor,

International Transcription Service,

Inc., 1231 20th Street, NW.,

Washington, DC 20037.

Summary of Report and Order

2. Based on the record in this

proceeding, we conclude that the 136–

137 MHz frequency band should remain

allocated for non-Government use on a

primary basis, but that the FAA should

have access to the five channels in that

frequency band that have been held in

reserve, 136.100 MHz, 136.200 MHz,

136.275 MHz, 136.375 MHz, and

136.475 MHz. Maintaining the existing

allocation will protect the private

sector’s current use of the 136–137 MHz

frequencies for aircraft operational

control communications without having

a negative impact on the FAA’s existing

rights to use the lower channels on a

shared basis for air traffic control

purposes. In addition, the existing

allocation of the band remains

consistent with the Final Acts of the

1979 and 1987 World Administrative

Radio Conferences. We also believe that

the public interest will be served by

extending the FAA’s existing shared

access to 136–137 MHz spectrum to

include the specified additional five

frequencies. This action will permit the

deployment of Flight Information

Services-Broadcast (FIS–B) to go

forward as contemplated by the FAA

and the civil aviation industry.

3. We also conclude that we should

accommodate digital communications

in the 117.975–137 MHz band and allow

the use of both VHF Digital Link Mode

2 and VHF Digital Link Mode 3

technology throughout the band without

limitation. This action will help to

alleviate congestion in the VHF

aeronautical spectrum and will permit

the introduction of FIS–B and other

advanced services that will enhance the

safety of flight. We also believe that

placing no restrictions on the types of

digital technologies that may operate in

the 117.975–137 MHz band will

promote flexibility and efficiency

during the transition to digital aviation

communications systems. It will allow

the FAA to move ahead with its plans

to deploy a VHF Digital Link Mode 3

system in the near future, while at the

same time addressing aviation industry

concerns that the significant investment

in VHF Digital Link Mode 2 technology

not be stranded.

4. We further conclude that FIS–B

should be authorized in the 136–137

MHz band. The desire to accommodate

FIS–B in the 136–137 MHz band was a

primary impetus for this rulemaking

proceeding, and all parties agree that

deployment of FIS–B will serve the

public interest. This action paves the

way for the implementation of a new

digital data service that will enhance

flight safety in the frequency band

identified by both the FAA and the

industry as most suitable for that

service. We designate as FIS–B

frequencies the four frequencies

identified by the FAA and the civil

aviation industry in their pleadings and,

consistent with the definition of FIS–B

as a ground-to-air service, we will

prohibit the use of the FIS–B

frequencies for transmissions from

aircraft. Prohibiting aircraft

transmission will ensure that FIS–B is

used for its intended purpose, will

promote spectrum efficiency, and will

minimize the time for needed for

aircraft reception of an entire FIS–B data

transmission.

5. Finally, we clarify that the

reservation of six channels—136.750

MHz, 136.775 MHz, 136.800 MHz,

136.825 MHz, 136.850 MHz and 136.875

MHz—for special purpose aeronautical

enroute services (helicopter flight

following systems) in the Gulf of Mexico

Region has expired, and we make five

of the channels, all but 136.750 MHz,

available for general purpose

aeronautical enroute service both inside

and outside the Gulf of Mexico Region.

The reservation of these channels for

helicopter flight following systems in

the Gulf of Mexico Region expired on

January 1, 1994. Of the six channels,

only 136.750 MHz was licensed for a

helicopter flight following system prior

to the January 1, 1994, expiration date.

Accordingly, the frequency 136.750

MHz should remain designated for

special purpose enroute services in the

Gulf of Mexico Region. Removing the

restriction on the five other channels is

consistent with previous FCC

determinations and will provide needed

additional spectrum resources for

general purpose aeronautical enroute

service.

Final Regulatory Flexibility Analysis

(FRFA)

6. As required by the Regulatory

Flexibility Act (RFA), an Initial

Regulatory Flexibility Analysis (IRFA)

was incorporated in the Notice of

Proposed Rulemaking (NPRM), 65 FR

41032, July 3, 2000, prepared in this

proceeding. The Commission sought

written public comment on the

proposals in the NPRM, including

comments on the IRFA. This present

FRFA conforms to the RFA.

Federal Register / Vol. 66, No. 94 / Tuesday, May 15, 2001 / Rules and Regulations 26797

A. Need for, and Objectives of, the

Report and Order

7. Our objective in this proceeding is

to address increasing spectrum

congestion within the 117.975–136 MHz

band stemming from increasing air

traffic control communications

requirements that cause frequency

assignments in this band to grow about

four percent annually. To alleviate this

congestion in spectrum used for

aviation communications vital to the

safety of flight, while providing the

Federal Aviation Administration (FAA)

with the latitude it needs to meet its

statutory role in administering the civil

aviation communications spectrum,

there needs to be a transition to new

digital communications technology. The

Report and Order and the rules adopted

therein accommodate this need by

revising technical requirements so as to

permit the introduction of new digital

aviation communication systems in the

117.975–136 MHz band generally, and

the introduction specifically of a new

digital data service known as Flight

Information Service-Broadcast (FIS–B)

on four channels in the 136–137 MHz

portion of the band. The adopted rules

further alleviate problems of spectrum

scarcity in the 136–137 MHz band by

giving the FAA shared access to five

additional frequencies between 136.000

MHz and 136.475 MHz and by clarifying

the availability for general purpose

aeronautical enroute service

communications of five frequencies

between 136.750 MHz and 136.875

MHz, inclusive.

II. Summary of Significant Issues

Raised by Public Comments in

Response to the IRFA

8. No comments were filed in direct

response to the IRFA.

III. Description and Estimate of the

Number of Small Entities to Which the

Adopted Rules Will Apply

9. Under the RFA, small entities may

include small organizations, small

businesses, and small governmental

jurisdictions, or entities. 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.

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

SBA. The statutory definition of a small

business applies ‘‘unless an agency after

consultation with the Office of

Advocacy of the SBA, 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.’’

10. A small organization is generally

‘‘any not-for-profit enterprise which is

independently owned and operated and

is not dominant in its field.’’

Nationwide, as of 1992, there were

approximately 275,801 small

organizations. The definition of ‘‘small

governmental jurisdiction’’ is one with

a population of fewer than 50,000.

There are 85,006 governmental

jurisdictions in the nation. This number

includes such entities as states,

counties, cities, utility districts and

school districts. There are no figures

available on what portion of this

number has populations of fewer than

50,000. However, this number includes

38,978 counties, cities and towns, and,

of those, 37,556, or 96 percent, have

populations of fewer than 50,000. The

Census Bureau estimates that this ratio

is approximately accurate for all

government entities. Thus, of the 85,006

governmental entities, we estimate that

96 percent, or about 81,600, are small

entities that may be affected by our

rules. Nationwide, there are 4.44 million

small business firms, according to SBA

reporting data.

11. The rules adopted in this Report

and Order will affect small businesses

that use, manufacture, design, import, or

sell transceivers or other radio

equipment intended to operate in the

frequency band 117.975–137 MHz for

the provision of aviation

communications. There are no

Commission-imposed requirements,

however, for any entity to use these

products. The adopted rules will benefit

small entities that use such equipment,

moreover, because they will enhance

the safety and efficiency of aircraft

navigation. At this time, the

Commission does not have access to

data that would permit a meaningful

estimate of the number of small entities

potentially affected by the adopted

rules. Therefore, we will use the SBA

definition of manufacturers of Radio

and Television Broadcasting and

Communications Equipment. According

to the SBA’s regulations, manufacturers

of transceivers and radio equipment

must have 750 or fewer employees in

order to qualify as a small business

concern. Census Bureau data indicates

that there are 858 U.S. firms that

manufacture radio and television

broadcasting and communications

equipment, and that 778 of these firms

have fewer than 750 employees and

would be classified as small entities.

The Census Bureau category is very

broad, and specific figures are not

available as to how many of these firms

are exclusive manufacturers of

transceivers and radio equipment or

how many are independently owned

and operated.

D. Description of Projected Reporting,

Recordkeeping and Other Compliance

Requirements

12. No new reporting, recordkeeping,

or other compliance requirements

would be imposed on applicants or

licensees as a result of the actions taken

in this rulemaking proceeding.

E. Steps Taken To Minimize Significant

Economic Impact on Small Entities and

Significant Alternatives Considered

13. The RFA requires an agency to

describe any significant alternatives that

it has considered in reaching its

proposed approach, which may include

the following four alternatives: (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 or

reporting requirements under the rule

for 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 small entities. The rules adopted in

the Report and Order do not impose any

new reporting or compliance

requirements, but only permit

additional uses of existing Aviation

Radio Service frequencies and the

establishment of a new service. The

rules adopted will accommodate the

deployment of new digital transceivers

designed to operate in the VHF

aeronautical frequency bands, but the

Commission has not specified design

standards for such equipment; the

Report and Order affects only the

technical, performance standards for the

use of the frequencies at issue. These

rules reflect, moreover, a consensus

among the FAA and the civil aviation

industry regarding the best means of

implementing FIS–B and other

advanced digital aviation

communications services. No parties

commenting on the NPRM

recommended any significant

alternatives to the rules adopted.

26798 Federal Register / Vol. 66, No. 94 / Tuesday, May 15, 2001 / Rules and Regulations

VI. Federal Rules That May Duplicate,

Overlap, or Conflict With the Adopted

Rules

14. None.

Report to Congress: The Commission

will send a copy of this Report and

Order, including this FRFA, in a report

to be sent to Congress pursuant to the

Small Business Regulatory Enforcement

Fairness Act of 1996, see 5 U.S.C.

801(a)(1)(A). In addition, the

Commission will end a copy of this

Report and Order, including FRFA, to

the Chief Counsel for Advocacy of the

Small Business Administration. A copy

of the Report and Order and FRFA (or

summaries thereof) will also be

published in the Federal Register. See

5 U.S.C. 604(b).

Ordering Clauses

15. Authority for issuance of this

Report and Order is contained in

sections 1, 4(i), 302, 303(f) and (r), 332,

and 337 of the Communications Act of

1934, as amended, 47 U.S.C. 151, 154(i),

302, 303(f) and (r), 337.

16. Pursuant to sections 1, 4(i), 302,

303(f) and (r), 332, and 337 of the

Communications Act of 1934, as

amended, 47 U.S.C. 151, 154(i), 302,

303(f) and (r), 337, that parts 2 and 87

of the Commission’s Rules, 47 CFR parts

2 and 87, ARE AMENDED as set forth

in appendix B, effective thirty days after

publication of this Report and Order in

the Federal Register.

17. The Commission’s Consumer

Information Bureau, Reference

Information Center, SHALL SEND a

copy of this Report and Order,

including the Final Regulatory

Flexibility Analysis, to the Chief

Counsel for Advocacy of the Small

Business Administration.

List of Subjects

47 CFR Part 2

Radio; Telecommunications.

47 CFR Part 87

Air transportation; Radio.

Federal Communications Commission.

William F. Caton,

Deputy, Secretary.

Final Rules

For reasons discussed in the

preamble, Title 47 of the Code of

Federal Regulations, parts 2 and 87 are

amended as follows:

PART 2—FREQUENCY ALLOCATIONS

AND RADIO TREATY MATTERS;

GENERAL RULES AND REGULATIONS

1. The authority citation for Part 2

continues to read as follows:

Authority: 47 U.S.C. 154, 302a, 303, and

336, unless otherwise noted.

2. Section 2.106 is amended by

revising footnote US244 to read as

follows:

§ 2.106 Table of Frequency Allocations.

* * * * *

United States (US) Footnotes

* * * * *

US244 The band 136.000–137.000

MHz is allocated to the non-Federal

Government aeronautical mobile (R)

service on a primary basis, and is

subject to pertinent international

treaties and agreements. The frequencies

136.000, 136.025, 136.050, 136.075,

136.100, 136.125, 136.150, 136.175,

136.200, 136.225, 136.250, 136.275,

136.300, 136.325, 136.350, 136.375,

136.400, 136.425, 136.450, and 136.475

MHz are available on a shared basis to

the Federal Aviation Administration for

air traffic control purposes, such as

automatic weather observation stations

(AWOS), automatic terminal

information services (ATIS), flight

information services-broadcast (FIS–B),

and airport control tower

communications. Existing operational

meteorological satellites in the band

136–137 MHz may continue to operate

on a not-to-interfere basis to

aeronautical mobile (R) stations, until

January 1, 2002. No new assignments

will be made to stations in the

meteorological-satellite service.

* * * * *

PART 87—AVIATION SERVICES

3. The authority citation for Part 87

continues to read as follows:

Authority: 47 U.S.C. 154, 303, and 307(e),

unless otherwise noted.

4. In § 87.131, amend the table by

revising the entries for Aeronautical

enroute and aeronautical fixed, Airport

control tower, and Aircraft

(Communication) to read as follows:

§ 87.131 Power and emissions.

* * * * *

Class of station Frequency

band/frequency Authorized emission(s) 9 Maximumpower 1

*******

Aeronautical enroute and aeronautical fixed ............. HF ..................... R3E, H3E, J3E, J7B, H2B ......................................... 6 kw.

HF ..................... A1A, F1B, J2A, J2B ................................................... 1.5 kw.

VHF .................. A3E, A9W, G1D ......................................................... 200 watts.2

*******

Airport control tower .................................................. VHF .................. A3E, G1D, G7D ......................................................... 50 watts.

Below 400 kHz A3E ............................................................................ 15 watts.

*******

Aeronautical Frequencies

Aircraft (Communication) ........................................... UHF .................. F2D, F9D, F7D .......................................................... 25 watts.

VHF .................. A3E, A9W, G1D, G7D ............................................... 55 watts.

HF ..................... R3E, H3E, J3E, J7B, H2B, J7D, J9W ....................... 400 watts.

HF ..................... A1A, F1B, J2A, J2B ................................................... 100 watts.

*******

*******

1The power is measured at the transmitter output terminals and the type of power is determined according to the emission designator as follows:

(i) Mean power (pY) for amplitude modulated emissions and transmitting both sidebands using unmodulated full carrier.

(ii) Peak envelope power (pX) for all emission designators other than those referred to in paragraph (i) of this note.

2Power and antenna height are restricted to the minimum necessary to achieve the required service.

Federal Register / Vol. 66, No. 94 / Tuesday, May 15, 2001 / Rules and Regulations 26799

*******

9Excludes automatic link establishment.

5. In § 87.133, amend the table in

paragraph (a) by revising the heading for

(5) Band—100–137 MHz to read (5)

Band—108–137 MHz, and by revising

the entries below that heading for

Aeronautical stations and Aircraft and

other mobile stations in the Aviation

Services and by adding notes 12 and 13

to the table to read as follows:

§ 87.133 Frequency stability.

(a) *****

Frequency band (lower limit exclusive, upper limit inclusive), and categories of stations Tolerance 1 Tolerance 2

*******

(5) Band—108 to 137 MHz:

Aeronautical stations ........................................................................................................................................ 4 50 12 20

*******

Aircraft and other mobile stations in the Aviation Services ............................................................................. 5 50 13 30

*******

1This tolerance is the maximum permitted until January 1, 1990, for transmitters installed before January 2, 1985, and used at the same installation. Tolerance is indicated in parts in 106 unless shown in Hertz (Hz). 2This tolerance is the maximum permitted after January 1, 1985, for new and replacement transmitters and to all transmitters after January 1,

1990. Tolerance is indicated in partS in 106 unless shown in Hertz (Hz).

* * * * * **

4The tolerance for transmitters approved between January 1, 1966, and January 1, 1974, is 30 parts in 106. The tolerance for transmitters approved after January 1, 1974, and stations using offset carrier techniques is 20 parts in 106. 5The tolerance for transmitters approved after January 1, 1974, is 30 parts in 106.

*******

12For emissions G1D and G7D, the tolerance is 2 parts per 106. 13For emissions G1D and G7D, the tolerance is 5 parts per 106.

*******

6. In § 87.137, amend the table in

paragraph (a) by adding an additional

entry for G1D immediately below the

existing entries for G1D to read as

follows:

§ 87.137 Types of emission.

(a) * * *

Class of emission Emission designator

Authorized bandwidth (kilohertz)

Below 50 MHz Above 50 MHz Frequency

deviation

*******

G1D ............................................................................................................... 14K0G1D .......... ........................ 25 ........................

*******

7. Amend § 87.139 by adding new

paragraph (k) to read as follows:

§ 87.139 Emission limitations.

* * * * *

(k) For VHF aeronautical stations and

aircraft stations operating with G1D or

G7D emissions:

(1) The amount of power measured

across either first adjacent 25 kHz

channel shall not exceed 0 dBm.

(2) The amount of power measured

across either second adjacent channel

share less than ¥25 dBm and the power

measured in any other adjacent 25 kHz

channels shall monotonically decrease

at a rate of at least 5 dB per octave to

a maximum value of ¥52 dBm.

(3) The amount of power measured

over a 16 kHz channel bandwidth

centered on the first adjacent 25 kHz

channel shall not exceed ¥20 dBm.

8. In § 87.173, amend the table in

paragraph (b) by revising the entries

from 136.00–136.075 MHz through

136.975 MHz to read as follows:

§ 87.173 Frequencies.

* * * * *

(b) Frequency table:

Frequency or frequency band Subpart Class of station Remarks

*******

136.000–136.400 MHz .............................................. O, S MA, FAC, FAW Air traffic control operations; 25 kHz channel

spacing.

136.425 MHz ............................................................. O, S MA, FAC, FAW Air traffic control operations.

136.450 MHz ............................................................. O, S MA, FAC, FAW Air traffic control operations.

136.475 MHz ............................................................. O, S MA, FAC, FAW Air traffic control operations.

136.500–136.875 MHz .............................................. I MA, FAE Domestic VHF; 25 kHz channel spacing.

136.900 MHz ............................................................. I MA, FAE International and domestic VHF.

136.925 MHz ............................................................. I MA, FAE International and domestic VHF.

26800 Federal Register / Vol. 66, No. 94 / Tuesday, May 15, 2001 / Rules and Regulations

Frequency or frequency band Subpart Class of station Remarks

136.950 MHz ............................................................. I MA, FAE International and domestic VHF.

136.975 MHz ............................................................. I MA, FAE International and domestic VHF.

*******

9. Amend § 87.187 by adding new

paragraph (dd) to read as follows:

§ 87.187 Frequencies.

* * * * *

(dd) The frequencies 136.425,

136.450, 136.475, and 136.500 MHz are

designated for flight information

services-broadcast (FIS–B) and may not

be used by aircraft for transmission.

10. In § 87.263, amend by revising

paragraphs (a)(1) and (a)(5) to read as

follows:

§ 87.263 Frequencies.

(a) Domestic VHF service. (1)

Frequencies in the 128.8125–132.125

MHz and 136.4875–137.00 MHz bands

are available to serve domestic routes,

except that the frequency 136.750 MHz

is available only to aeronautical enroute

stations located at least 288 kilometers

(180 miles) from the Gulf of Mexico

shoreline (outside the Gulf of Mexico

region). The frequencies 136.900 MHz,

136.925 MHz, 136.950 MHz and 136.975

MHz are available to serve domestic and

international routes. Frequency

assignments are based on 25 kHz

spacing. Use of these frequencies must

be compatible with existing operations

and must be in accordance with

pertinent international treaties and

agreements.

* * * * *

(5) The frequency 136.750 MHz is

available in the Gulf of Mexico Region

to serve domestic routes over the Gulf

of Mexico and adjacent coastal areas.

Assignment of this frequency in the Gulf

of Mexico Region shall be to licensees

first licensed on this frequency in the

Gulf of Mexico Region prior to January

1, 1994, their successors and assigns,

and is not subject to the conditions in

§ 87.261(c) and paragraph (a)(2) of this

section. For the purpose of this

paragraph, the Gulf of Mexico Region is

defined as an area bounded on the east,

north, and west by a line 288 km (180

miles) from the Gulf of Mexico shore

line. Inland stations must be located

within forty-eight kilometers (30 miles)

of the Gulf of Mexico shore line.

* * * * *

[FR Doc. 01–12162 Filed 5–14–01; 8:45 am]

BILLING CODE 6712–01–P

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 51

[CC Docket Nos. 96–98, 99–68; FCC 01–

131]

Implementation of the Local

Competition Provisions in the

Telecommunications Act of 1996;

Intercarrier Compensation for ISPBound Traffic

AGENCY: Federal Communications

Commission.

ACTION: Final rule; order on remand and

report and order.

SUMMARY: In this final rule, the

Commission reconsiders the proper

treatment of telecommunications traffic

delivered to Internet service providers

(ISPs) for purposes of inter-carrier

compensation. The Commission

reaffirms its previous conclusion that

traffic delivered to an ISP is

predominantly interstate access traffic,

in particular, information access, subject

to section 201 of the Communications

Act of 1934, as amended (the Act), and

the Commission establishes an

appropriate cost recovery mechanism

for the exchange of such traffic.

DATES: The amendments to 47 CFR part

51 are effective June 14, 2001. However

the portion of the Order specified in the

ordering clauses takes effect upon May

15, 2001.

FOR FURTHER INFORMATION CONTACT:

Tamara Preiss, Deputy Chief, Common

Carrier Bureau, Competitive Pricing

Division, (202) 418–1520.

SUPPLEMENTARY INFORMATION: This is a

summary of the Commission’s Order on

Remand and Report and Order in CC

Docket Nos. 96–98, 99–68, adopted

April 18, 2001, and released on April

27, 2001. The full text of this document

is available for public inspection

Monday through Thursday from 8:00

a.m. to 4:30 p.m. and Friday from 8:00

a.m. to 11:30 a.m. in the FCC Reference

Information Center, Room CY–A257,

445 Twelfth Street, S.W., Washington,

DC 20554. The complete text of the

order may be purchased from the

Commission’s duplicating contractor,

ITS, Inc., at 1231 20th Street N.W.,

Washington, DC 20036 (202–857–3800).

Synopsis of Order on Remand and

Report and Order

1. After a remand by the U.S. Court

of Appeals for the D.C. Circuit in Bell

Atlantic Telephone Cos. v. FCC, 206

F.3d 1 (D.C. Cir. 2000), in this final rule

the Commission reconsiders the

rationales underlying its regulatory

treatment of telecommunications traffic

delivered to ISPs to determine whether

ISP-bound traffic is subject to statutory

reciprocal compensation requirements.

A more comprehensive review of the

statute reveals that Congress intended to

exempt certain enumerated categories of

service from the universe of

‘‘telecommunications’’ subject to the

reciprocal compensation requirements

of section 251(b)(5), 47 U.S.C. 251(b)(5).

The statute does not mandate reciprocal

compensation for ‘‘exchange access,

information access, and exchange

services for such access’’ when the

service is provided by local exchange

carriers (LECs) to interexchange carriers

(IXCs) or information service providers.

The Commission finds that Congress

specifically exempted the services

enumerated under section 251(g), 47

U.S.C. 251(g), from the newly-imposed

reciprocal compensation requirement in

order to ensure that section 251(b)(5) is

not interpreted to override either

existing or future regulations prescribed

by the Commission. Because the

Commission interprets paragraph (g) as

a carve-out provision, the focus of the

inquiry is on the universe of traffic that

falls within paragraph (g) and not the

universe of traffic that falls within

paragraph (b)(5).

2. The Commission specifically finds

that ISP-bound traffic falls within at

least one of the three enumerated

categories in section 251(g). Regardless

of whether this traffic falls under the

category of ‘‘exchange access,’’ an issue

pending before the U.S. Court of

Appeals for the D.C. Circuit in a

separate proceeding, the Commission

concludes that this traffic, at a

minimum, falls under the rubric of

‘‘information access,’’ a legacy term

imported into section 251(g) of the 1996

Act from the Modified Final Judgment

(MFJ), but not expressly defined in the

Communications Act. See United States

v. AT&T, 552 F. Supp. 131 (D.D.C.

1982), aff’d sub nom. Maryland v.

United States, 460 U.S. 1001 (1983). The