[Federal Register Volume 61, Number 117 (Monday, June 17, 1996)]
[Proposed Rules]
[Pages 30581-30584]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15147]



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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 64

[CC Docket No. 92-77, FCC 96-253]


Billed Party Preference for O+ InterLATA Calls

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: The Commission adopted a Second Further Notice of Proposed 
Rulemaking (NPRM) seeking comment on tentative conclusions that it 
should establish benchmarks for the rates that consumers are asked to 
pay for operator service calls reflecting what consumers expect to pay 
for those calls and require that, if consumers will be charged rates 
above the benchmarks, the operator service provider (OSP) offering 
services through payphones and other aggregator locations disclose the 
applicable charges for the call to the consumer orally before 
connecting the call. The NPRM also seeks comment on what benchmark 
rates the Commission should establish, as well as on an alternative 
that would require all OSPs to disclose their rates orally on all 
operator service calls. The NPRM also solicits comment on whether the 
FCC should forbear from applying informational tariff filing 
requirements for interstate operator services, and, if not, on proposed 
rules and a waiver policy with respect to the filing of such tariffs. 
Finally, the Commission seeks comment on the best means to remedy the 
problem of high rates charged by some carriers that serve phones in 
prisons that are used by inmates to make collect calls. The proposed 
rule changes are intended to enable consumers to make better informed 
decisions whether to use a particular OSP when making a call from a 
payphone or other aggregator location away from home.

DATES: Written comment by the public on the Second Further Notice of 
Proposed RuleMaking and the proposed and/or modified information 
collections are due July 17, 1996. Reply comments are due on August 16, 
1996. Written comments by the Office of Management and Budget (OMB) on 
the proposed and/or modified information collections are due on or 
before August 16, 1996.

ADDRESSES: Comments and reply comments should be sent to the Secretary, 
Federal Communications Commission, 1919 M St. N.W., Washington, DC 
20554. In addition to filing comments with the Secretary, a copy of any 
comments on the information collections contained herein should be 
submitted to Dorothy Conway, Federal Communications

[[Page 30582]]

Commission, Room 234, 1919 M Street, N.W., Washington, DC 20554, or via 
the Internet to <a href="/cdn-cgi/l/email-protection#492d2a26273e2830092f2a2a672e263f"><span class="__cf_email__" data-cfemail="ea8e8985849d8b93aa8c8989c48d859c">[email protected]</span></a>, and to Timothy Fain, OMB Desk Officer, 
10236 NEOB, 725-17th Street, N.W., Washington, DC 20503 or via the 
Internet to <a href="/cdn-cgi/l/email-protection#ddbbbcb4b382a99dbcb1f3b8b2adf3bab2ab"><span class="__cf_email__" data-cfemail="87e1e6eee9d8f3c7e6eba9e2e8f7a9e0e8f1">[email protected]</span></a>.

FOR FURTHER INFORMATION CONTACT: Adrien Auger, Enforcement Division, 
Common Carrier Bureau, (202) 418-0960. For additional information 
concerning the information collections contained in this Second Further 
Notice of Proposed RuleMaking contact Dorothy Conway at 202/418-0217, 
or via the Internet at <a href="/cdn-cgi/l/email-protection#5f3b3c3031283e261f393c3c71383029"><span class="__cf_email__" data-cfemail="2a4e4945445d4b536a4c4949044d455c">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Second 
Further Notice of Proposed Rulemaking in Billed Party Preference, CC 
Docket No. 92-77, FCC 96-252, adopted June 4, 1995, and released June 
6, 1996. The full text of this Commission NPRM is available for 
inspection and copying during normal business hours in the FCC 
Reference Center, Room 239, 1919 M St., N.W., Washington, DC. The 
complete text of the NPRM may also be purchased from the Commission's 
duplicating contractor, International Transcription Services, 2100 M 
St., N.W., Suite 140, Washington, D.C. 20037 (202) 857-3800. The NPRM 
contains proposed or modified information collections subject to the 
Paperwork Reduction Act of 1995, Public Law No. 104-13 (PRA). It has 
been submitted to OMB for review under Section 3507(d) of the PRA. OMB, 
the general public, and other Federal agencies are invited to comment 
on the proposed or modified information collections contained in this 
proceeding.

Paperwork Reduction Act

    The NPRM contains proposed or modified information collections. The 
Commission, as part of its continuing effort to reduce paperwork 
burdens, invites the general public and OMB to comment on the 
information collections contained in the NPRM, as required by the PRA. 
Public and agency comments are due at the same time as other comments 
on the NPRM; OMB comments are due August 16, 1996. Comments should 
address: (a) whether the proposed collection of information is 
necessary for the proper performance of the functions of the 
Commission, including whether the information shall have practical 
utility; (b) the accuracy of the Commission's burden estimates; (c) 
ways to enhance the quality, utility, and clarity of the information 
collected; and (d) ways to minimize the burden of the collection of 
information on the respondents, including the use of automated 
collection techniques or other forms of information technology.
    (1) OMB Control Number: None.
    Title: Proposed benchmark system.
    Type of Review: New collection.
    Respondents: Business or other for-profit, including small 
business.
    Number of Respondents: 10.
    Estimated Time per Response: 2 hours.
    Total Annual Burden: 20 hours.
    Estimated Cost Per Respondent: $0.
    Needs and Uses: Oral disclosure, at point of purchase, of the 
specific charges, including any surcharges, that would be charged for 
interstate operator services is necessary to enable consumers to make 
informed decisions whether to use a particular OSP when making a call 
from a payphone or other aggregator location.
    (2) OMB Control Number: None.
    Title: Proposed certification requirement.
    Type of Review: New collection.
    Respondents: Business or other for-profit, including small 
business.
    Number of Respondents: 190.
    Estimated Time per Response: 10 minutes.
    Total Annual Burden: 1900 minutes.
    Estimated Cost Per Respondent: $0.
    Needs and Uses: Certification that an interstate operator service 
provider's rates and associated surcharges do not exceed FCC-
established benchmarks will better protect consumers from unexpected 
high charges and obviate the need for the operator service provider to 
file and maintain an informational tariff, which does not provide 
potential consumers with advance notice of rate changes.
    (3) OMB Control Number: None.
    Title: Proposed reporting requirement.
    Type of Review: New collection.
    Respondents: Business or other for-profit, including small 
business.
    Number of Respondents: 10.
    Estimated Time per Response: 50 hours.
    Total Annual Burden: 500 burden hours.
    Estimated Cost Per Respondent: $0.
    Needs and Uses: Currently, under 47 U.S.C. 226(h)(1)(A), OSPs must 
file and maintain informational tariffs of applicable charges for 
interstate operator services provided from payphones and other 
aggregator locations. Should the Commission determine that it should 
not forbear from enforcing this section of the Communications Act, 
informational tariffs specifying applicable rates and surcharges for a 
particular call in dollars and cents will enable consumers to ascertain 
whether they wish to use a particular OSP when making a payphone call.

Summary of Notice of Proposed Rule Making

I. Background

    In 1992, the Commission adopted Billed Party Preference for 0+ 
InterLATA Calls, CC Docket No. 92-77, Notice of Proposed Rulemaking, 7 
FCC Rcd 3027, 57 FR 24574 (June 10, 1992), initiating a rulemaking 
proceeding to consider the merits of an automated ``billed party 
preference'' (BPP) routing methodology for 0+ interLATA traffic. The 
Commission tentatively concluded that BPP is, in concept, in the public 
interest, but sought comments on the costs and benefits of BPP as well 
as on a number of aspects of how BPP might be implemented.
    In 1994, the Commission adopted a Further Notice of Proposed 
Rulemaking, 9 FCC Rcd 3320, 59 FR 30754 (June 15, 1994), seeking 
further comment. The Commission found that the available evidence 
indicated that the benefits of BPP outweighed its costs, but that some 
of the data underlying its cost/benefit analysis were not as precise 
and current as it desired. Therefore, the Commission sought additional 
and updated data, further comment on its cost/benefit analysis of BPP, 
and proposals for less costly alternatives to BPP.

II. Discussion

    Currently, interstate 0+ calls--that is, interstate calls that are 
made by entering a ``0'' followed by a telephone number--are routed to 
the OSP selected by either the premises owner or the provider of the 
phone. The Commission found that this has led many callers to be 
charged substantially higher rates than they expected. Therefore, the 
Commission now tentatively concludes that it should adopt a benchmark 
reflecting what consumers expect to pay for interstate 0+ calls and 
require OSPs to orally disclose the total charges for which consumers 
will be liable for a call if those charges are above the benchmark. The 
Commission believes that this will help ensure that consumers are not 
surprised by unexpectedly high charges for their 0+ calls, but rather, 
that consumers can make better informed choices about which OSP to use 
for their calls.
    The Commission also seeks comment on whether it should, 
alternatively, require all OSPs to disclose the prices for all 0+ 
calls, thereby avoiding the need to establish benchmarks, or whether 
the cost of such a disclosure requirement to OSPs, and ultimately to 
consumers, would exceed the benefit to

[[Page 30583]]

consumers, especially with regard to 0+ calls priced at or below levels 
that consumers generally expect. The Commission also seeks comment on, 
if it establishes a benchmark, where it should be set. The NPRM 
describes a number of benchmark options proposed by interested parties, 
including the average rate charged by AT&T, MCI, and Sprint, a level 
15-percent above that average, and a fixed set of rates proposed by an 
OSP industry coalition. The Commission also considers several 
qualifications to the benchmark that would make OSP compliance 
administratively easier.
    The Commission also seeks comment on whether, under the recently-
enacted Telecommunications Act of 1996, it must forbear from applying 
informational tariff filing requirements and, if not, on proposed rules 
and a waiver policy with respect to the filing of such tariffs. 
Comments are also requested on whether the public interest would be 
better served by means other than BPP for calls from inmate-only 
telephones in prisons and other correctional institutions.

III. Comments and Ex Parte Presentations

    All interested parties may file comments on the issues set forth in 
the NPRM, on which comment is specifically sought, by July 17, 1996, 
and reply comments by August 16, 1996. All relevant and timely comments 
will be considered by the Commission before final action is taken in 
this proceeding. To file formally in this proceeding, participants must 
file in accordance with the ordering clauses below. Parties are invited 
to submit, in conjunction with their comments or replies, proposed text 
for rules that the Commission could adopt in this proceeding. Specific 
rule proposals should be filed as an appendix to a party's comments or 
reply.
    This is a non-restricted notice and comment rule making proceeding. 
Ex parte presentations are permitted, except during the Sunshine Agenda 
period, provided they are disclosed as provided in Commission rules. 
See, generally, 47 CFR 1.1202, 1.1203, and 1.1206(a).

IV. Conclusion

    The NPRM tentatively concludes that the FCC should: (1) establish 
benchmarks for OSPs' rates and associated charges that reflect 
consumers' expectations; and (2) require OSPs whose charges and related 
aggregator surcharges or premises-owner fees exceed such benchmarks to 
disclose orally to consumers, before connecting a call, the total 
charges for which consumers would be liable. In the alternative, the 
FCC seeks comment on whether it should require OSPs to give specific 
rate information for all 0+ calls before connecting the calls. It also 
solicits comment on proposed rules with respect to the filing of 
informational tariffs for interstate operator services and the extent 
to which it must or may forbear from enforcing the requirements for 
such tariffs. Finally, it solicits comment whether the public interest 
would be better served by alternative remedies than BPP for high rates 
charged by some carriers serving prisons.

V. Regulatory Flexibility Analysis

Reason for Action
    The Commission is issuing the NPRM to consider alternatives to the 
implementation of Billed Party Preference by local exchange carriers, 
to protect consumers from excessive charges in connection with 
interstate operator services, and to help ensure that consumers are 
aware of the price of a long distance operator service call before 
incurring charges.
    Objectives. The objective of the NPRM is to propose requirements 
regarding charges and surcharges applicable to interstate operator 
services and to provide an opportunity for public comment thereon.
    Legal Basis. Sections 1, 4(i), 4(j), 201-205, 226 and 228 of the 
Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 154(j), 
201-205, 226, 228.
    Description, potential impact, and number of small entities 
affected. The proposed rules will require that interexchange carriers' 
Informational Tariffs, filed pursuant to Section 226 of the 
Communications Act, contain specific rates for their operator services. 
Hundreds of small operator services companies may have to file 
substitute tariffs and will have to implement other information 
disclosure requirements if their rates, and related payphone premises-
owners' fees or aggregator surcharges, substantially exceed the rates 
charged by AT&T, MCI and Sprint. Small entities may feel some economic 
impact in additional printing costs, message production and recording 
costs due to these requirements.
    Reporting, record-keeping, and other compliance requirements. The 
proposed rules would require carriers charging rates above an 
established benchmark to provide audibly to consumers the price, or 
maximum price, of the call before connecting a call.
    Federal rules that overlap, duplicate, or conflict with the 
Commission's proposal. None.
    Any significant alternatives minimizing impact on small entities 
and consistent with stated objectives. None apparent at this time.
    Comments are solicited. The FCC requests written comments on this 
Initial Regulatory Flexibility Analysis. These comments must be filed 
in accordance with the same filing deadlines set for comments on the 
other issues in the NPRM, but they must have a separate and distinct 
heading designating them as responses to this Regulatory Flexibility 
Analysis. The FCC is sending a copy of the NPRM to the Chief Counsel 
for Advocacy of the Small Business Administration in accordance with 
Section 603(a) of the Regulatory Flexibility Act. See 5 U.S.C. 601, et 
seq.

VI. Ordering Clauses

    1. Accordingly, It is Ordered, pursuant to Sections 1, 4(i), 4(j), 
10, 201-205, 218 and 226 of the Communications Act of 1934, as amended, 
47 U.S.C. Sec. 151, 154(i), 154(j), 160, 201-205, 218, 226, that a 
Second Further Notice of Proposed Rule Making is Issued, proposing the 
amendment of 47 CFR Part 64 as set forth below.
    2. It is further ordered that, pursuant to applicable procedures 
set forth in Secs. 1.415 and 1.419 of the Commission's Rules, 47 CFR 
1.415, 1.419, comments Shall be filed with the Secretary, Federal 
Communications Commission, Washington, D.C. 20554 on or before July 17, 
1996. Reply comments should be filed no later than August 16, 1996. To 
file formally in this proceeding, participants must file an original 
and six copies of all comments, reply comments, and supporting 
comments. If participants want each Commissioner to receive a personal 
copy of their comments, an original plus nine copies must be filed. In 
addition, parties should file two copies of any such pleadings with the 
Enforcement Division, Common Carrier Bureau, Room 6008, 2025 M Street 
N.W., Washington, D.C. 20554. Parties should also file one copy of any 
documents filed in this docket with the Commission's copy contractor, 
International Transcription Services, Room 140, 2100 M Street, N.W., 
Washington, D.C. 20037. Comments and reply comments will be available 
for public inspection during regular business hours in the FCC 
Reference Center (Room 239) of the Federal Communications Commission, 
1919 M Street, N.W., Washington, D.C. 20554.

[[Page 30584]]

    3. It is further ordered that, in order to facilitate review of 
comments and reply comments, both by parties and by Commission staff, 
we require that comments and reply comments include a summary of the 
substantive arguments raised in the pleading. Comments and reply 
comments must also comply with section 1.49 and all other applicable 
sections of the Commission's Rules. See 47 CFR Sec. 1.49. Parties are 
also asked to submit comments and reply comments on diskette. Such 
diskette submissions would be in addition to the formal filing 
requirements addressed above. Parties submitting diskettes should 
submit them to Adrien Auger of the Common Carrier Bureau, 2025 M 
Street, N.W., Room 6120, Washington, D.C. 20554. Such submission should 
be on a 3.5 inch diskette formatted in an IBM compatible form using MS 
DOS 5.0 and WordPerfect 5.1 software. The diskette should be submitted 
in ``read only'' mode. The diskette should be clearly labelled with the 
party's name, proceeding, type of pleading (comment or reply comments) 
and date of submission. The diskette should be accompanied by a cover 
letter.
    4. It is further ordered that any written comments by the public, 
as provided for in the Paper Reduction Act of 1995, on the proposed 
and/or modified information collections are due July 17, 1996. Written 
comments must be submitted by the Office of Management and Budget on 
the proposed and/or modified information collections on or before 
August 16, 1996. In addition to filing comments with the Secretary, a 
copy of any comments on the information collections contained herein 
should be submitted to Dorothy Conway, Federal Communications 
Commission, Room 234, 1919 M Street, N.W., Washington, DC 20554, or via 
the Internet to <a href="/cdn-cgi/l/email-protection#fd999e92938a9c84bd9b9e9ed39a928b"><span class="__cf_email__" data-cfemail="dcb8bfb3b2abbda59cbabfbff2bbb3aa">[email protected]</span></a> and to Timothy Fain, OMB Desk Officer, 
10236 NEOB, 725-17th Street, N.W., Washington, DC 20503 or via the 
Internet to <a href="/cdn-cgi/l/email-protection#c5a3a4acab9ab185a4a9eba0aab5eba2aab3"><span class="__cf_email__" data-cfemail="2e484f4740715a6e4f42004b415e00494158">[email protected]</span></a>.
    5. It is further ordered, that the Chief of the Common Carrier 
Bureau is delegated authority to require the submission of additional 
information, make further inquiries, and modify the dates and 
procedures in this docket if necessary to provide for a more complete 
record and a more efficient proceeding.
    6. It is further ordered, that the Secretary shall mail a copy of 
this Second Further Notice of Proposed Rule Making to the Chief Counsel 
for Advocacy of the Small Business Administration, in accordance with 
section 603(a) of the Regulatory Flexibility Act, 5 U.S.C. 
Sec. 603(a)(1981). The Secretary shall also cause a summary of this 
NPRM to appear in the Federal Register.

List of Subjects in 47 CFR Part 64

    Communications common carriers, Reporting and recordkeeping 
requirements, Telephone.

Federal Communications Commission.
William F. Caton,
Acting Secretary.

Rule Changes

    Part 64 of Title 47 of the Code of Federal Regulations is proposed 
to be amended as follows:

PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS

    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 64.703 is amended by revising paragraph (c) to read as 
follows:


Sec. 64.703  Consumer information.

 * * * * *
    (c) Information disclosure.
    (1) Informational tariffs filed pursuant to 47 U.S.C. 
Sec. 226(h)(1)(A) shall contain specific rates expressed in dollars and 
cents for all interstate operator services of the carrier and shall 
also contain applicable surcharges, if any, billed on behalf of 
aggregators by the carrier or another billing agent.
    (2) Surcharges billed on behalf of aggregators, if any, shall be 
specified in informational tariffs in dollars and cents.
    (3) In order to remove all doubt as to their proper application, 
all informational tariffs must contain clear and explicit explanatory 
statements regarding the rates, i.e., the tariffed price per unit of 
service, and the regulations governing the offering of service in that 
tariff.
    (4) Operator services providers whose charges and any applicable 
aggregator surcharge for any call exceed any benchmark established by 
the Commission, or exceed benchmarks established by the Commission for 
the initial minute or additional minutes, shall provide, at no charge 
before the call is connected, either the specific charges, including 
any aggregator surcharge or premises owner fee, applicable to that 
call, or the maximum charges, including any aggregator surcharge or 
premises owner fee, that the consumer may be billed for that call.
    (5) Informational tariffs shall be accompanied by a cover letter, 
addressed to the Secretary of the Commission, explaining the purpose of 
the filing.
    (i) The original of the cover letter shall be submitted to the 
Secretary without attachments, along with FCC Form 159, and the 
appropriate fee to the Mellon Bank, Pittsburgh, Pennsylvania.
    (ii) Copies of the cover letter and the attachments shall be 
submitted to the Secretary's Office, the Commission's contractor for 
public records duplication, and the Chief, Tariff Review Branch.
    (6) Any changes to the tariff shall be submitted under a new cover 
letter with a complete copy of the tariff, including changes.
    (i) Changes to a tariff shall be explained in the cover letter but 
need not be symbolized on the tariff pages.
    (ii) Revised tariffs shall be filed pursuant to the procedures 
specified in subsection 64.703(c)(5).
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[FR Doc. 96-15147 Filed 6-14-96; 8:45 am]
BILLING CODE 6712-01-P

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