[Federal Register Volume 60, Number 4 (Friday, January 6, 1995)]
[Proposed Rules]
[Pages 2068-2069]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-267]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 61 and 69
[CC Docket No. 91-213, FCC No. 94-325]
Transport Rate Structure and Pricing
AGENCY: Federal Communications Commission.
ACTION: Proposed rule.
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SUMMARY: On December 22, 1994, the Commission released a Supplemental
Notice of Proposed Rulemaking inviting comments from interested parties
on proposals to stimulate the resale and sharing of network facilities
by common carriers through the use of ``split billing.'' Split billing
is a billing arrangement that enables multiple customers to share or
resell entrance facilities and direct-trunked transport facilities.
Implementing procedures for common carriers to provide split billing
will enable smaller customers to better obtain the benefits of, and
contribute to, the Commission's goal of more efficient use of network
facilities by allowing pricing to reflect costs, by permitting a rate
structure which is conducive to competition, and by encouraging the
development of full and fair competition.
DATES: Comments must be received on or before February 1, 1995; reply
comments must be received on or before February 16, 1995.
ADDRESSES: Federal Communications Commission, 1919 M Street, N.W.,
Washington, D.C. 20554; one copy shall also be filed with the
Commission's copy contractor, International Transcription Services,
Inc. (ITS, Inc.), 2100 M Street, N.W., Suite 140, Washington, D.C.
20037 (202) 857-3800.
FOR FURTHER INFORMATION CONTACT:
Debra Sabourin, Common Carrier Bureau, (202) 418-1530.
SUPPLEMENTARY INFORMATION:
1. Summary of Transport Rate Structure and Pricing
On December 22, 1994, the Commission released a Supplemental Notice
of Proposed Rulemaking in its Transport Rate Structure and Pricing
proceeding, CC Docket No. 91-213, FCC No. 94-325. In this Order, the
Commission tentatively concludes that it is in the public interest to
require local exchange carriers (LECs) to offer split billing for their
transport service, and that it is also in the public interest to
require these carriers to include in their tariffs procedures for
offering transport split billing. Split billing is a billing
arrangement that enables multiple customers to share or resell entrance
facilities and direct-trunked transport facilities.
Proposed rule. Through LEC split billing and shared network
arrangements, customers can reap the maximum benefit from the
restructured transport rates. LEC split billing would help smaller
interexchange carriers (IXCs) reduce their access costs by enabling
them to resell the services of other IXCs or by utilizing network
sharing arrangements with other carriers to transmit and terminate
interstate calls. It could also solve the practical billing problems
that have arisen regarding Feature Group A and B access services.
Finally, split billing could permit more efficient deployment and use
of transport facilities, a primary goal of the transport restructure.
The Commission therefore tentatively concludes that split billing for
transport service is in the public interest. It further tentatively
concludes that it should require the LECs to include in their tariffs
procedures for offering transport split billing. The Commission seeks
comment on these conclusions.
Implementation. As the record on this issue indicates, the parties
strongly disagree on how best to implement split billing. Although the
industry's Ordering and Billing Forum (OBF) has made progress, it has
not yet been able to reach final closure on an access charge split
billing prototype after 11 months of consideration. The Commission
therefore seeks comment on how best to implement the proposed split
billing requirement.
First, the Commission seeks comment on a proposal offered by
CompTel in the transport tariff review proceeding. CompTel urges the
Commission to adopt the following affirmative steps to make resale and
sharing feasible: (1) require the LECs to permit switched and special
access facilities to be combined at the customer POP, LEC serving wire
centers, or any other designated hubbing locations; (2) require the
LECs to permit multiple carriers of record for DS3 and DS1 entrance and
interoffice facilities; (3) require the LECs to offer ``split billing''
for multiplexing equipment located at a hub; and (4) require the LECs
to permit the IXC to specify (i) the type and grade of switched access
service as well as the code at the terminating hub, and (ii) the
customer premises location associated with special access channels. The
Commission seeks comment on whether it should adopt any of these
proposed requirements.
Second, the Commission seeks comment on whether a split billing
charge levied on multiple customers of record using a single high-
capacity facility should be set to recover the cost of unused as well
as used capacity. For example, should a LEC be allowed to charge an
end-user customer for its use of a high-capacity facility at a rate
computed by dividing total flat charges for the entrance and
interoffice facilities by the number of end-users whose traffic is
carried over that facility, with a pro rata allocation of the costs of
unused capacity in that rate? Commenters should address the issue of
which entity would be responsible for determining the allocation, the
service design and capability and the circuit facility assignment under
such an [[Page 2069]] arrangement. In addition, commenters should
discuss whether this form of split billing should be available to
resellers of access service, or should be limited to customers seeking
to share dedicated facilities for their own use. Commenters should also
address methods to ensure that Feature Group A and B users are not
double-billed for their use of the same facilities.
In addition, the Commission seeks comment on whether the type of
split billing and shared network arrangements offered by NYNEX and
Southwestern Bell adequately address customer needs for such
arrangements. It also invites parties to comment on whether similar or
modified arrangements should be offered by all LECs. Commenters should
specifically address whether the ``host/secondary customer of record''
arrangement, under which a single IXC serves as the ``host'' customer
of record, and is responsible for service arrangement and control,
would satisfy the access customers' needs for sharing and resale of
dedicated transport facilities. Commenters should also discuss how such
offerings could be expanded or improved to meet customer needs.
Commenters advocating that there be a single, host customer of record
for the access service should specifically discuss how this split
billing arrangement would apply to voice-grade access for Feature Group
A and B services.
Finally, the Commission seeks comment on any other form of split
billing that commenters believe would achieve the goals it has
identified. Of particular interest would be any split billing prototype
under consideration by the industry's OBF. Commenters who do not
support a requirement that the LECs include in their tariffs procedures
for offering split billing and shared network configurations should
discuss alternative ways to satisfy LEC provision of these
arrangements.
The full text of this Commission decision is available for
inspection and copying during normal business hours in the FCC Dockets
Branch (Room 230), 1919 M Street NW., Washington, DC. The complete text
of this decision may also be purchased from the Commission's copy
contractor, ITS, Inc.
2. Procedural Matters
Ex Parte. This is a non-restricted notice and comment rulemaking.
Ex parte presentations are permitted, except during the Sunshine
period, provided they are disclosed as provided in the Commission's
rules. See generally, 47 CFR 1.1202, 1.1203, and 1.1206(a).
Notice and Comment Provision. Notice is given of the proposed
changes in the Commission's policies regarding split billing. Comment
is invited on the proposals pursuant to Sections 1, 4 (i) and (j), 201-
205, 218, and 403 of the Communications Act as amended, 47 U.S.C.
Secs. 151.1 54(i) and (j), 201-205, 218, and 403. To file formally in
this proceeding, parties must file an original and five copies of all
comments, reply comments, and supporting comments. Parties wanting each
Commissioner to receive a personal copy of their comments must file an
original plus nine copies. All comments and reply comments should be
sent to the Office of the Secretary. In addition, parties should file
two copies of any such pleadings with the Tariff Division, Common
Carrier Bureau, Room 518, 1919 M Street, N.W., Washington, DC 20554.
Comments and reply comments will be available for public inspection
during regular business hours in the FCC Reference Center, Room 239,
1919 M Street, NW., Washington, DC.
Regulatory Flexibility Act. The Regulatory Flexibility Act of 1980
does not apply to this rulemaking proceeding because the proposed rule
amendments, if promulgated, would not have a significant economic
impact on a substantial number of small business entities, as defined
by Section 601(3) of the Regulatory Flexibility Act. Carriers providing
interstate transport services directly subject to the proposed rule
amendment do not qualify as small businesses since they are dominant in
their field of operation. The Commission will, however, take
appropriate steps to ensure that the special circumstances of the
smaller local exchange carriers are carefully considered in resolving
those issues. The Secretary shall send a copy of this Supplemental
Notice of Proposed Rulemaking, including the certification, to the
Chief Counsel for Advocacy of the Small Business Administration in
accordance with paragraph 603(a) of the Regulatory Flexibility Act.
Pub.L. No. 96-354, 94 Stat. 1164, 5 U.S.C. Section 601 et seq. (1981).
Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 95-267 Filed 1-5-95; 8:45 am]
BILLING CODE 6712-01-M
