99-7787. Defining Primary Lines  

  • [Federal Register Volume 64, Number 64 (Monday, April 5, 1999)]
    [Rules and Regulations]
    [Pages 16353-16358]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-7787]
    
    
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    FEDERAL COMMUNICATIONS COMMISSION
    
    47 CFR Part 69
    
    [CC Docket No. 97-181; FCC 99-28]
    
    
    Defining Primary Lines
    
    AGENCY: Federal Communications Commission.
    
    ACTION: Final rule.
    
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    SUMMARY: The Federal Communications Commission adopts a location-based 
    definition of ``primary residential line.'' Under this definition, one 
    residential line that a price cap local exchange carrier (LEC) provides 
    to a particular location will be considered primary. Any other 
    residential lines the price cap LEC provides to the same location shall 
    be deemed non-primary residential lines. The Commission maintains the 
    existing definition of ``single line business line.'' These definitions 
    will facilitate implementation of the Commission's access charge rules, 
    which set higher caps for the subscriber line charges (SLCs) and 
    presubscribed interexchange carrier charges (PICCs) that price cap LECs 
    may assess on non-primary residential lines and multi-line business 
    lines than on primary residential lines and single line business lines. 
    Adopting requirements for differentiating and identifying such lines 
    will promote uniformity in the way price cap LECs assess SLCs and 
    PICCs.
    
    EFFECTIVE DATE: July 1, 1999.
    
    ADDRESSES: The entire file is available for inspection and copying 
    weekdays from 9:00 a.m. to 4:30 p.m. in the Commission's Reference 
    Center, 445 Twelfth Street SW, Washington, DC 20554. Copies may be 
    purchased from the Commission's duplicating contractor, ITS Inc., 1231 
    Twentieth St., NW, Washington, DC 20036, (202) 857-3800.
    
    FOR FURTHER INFORMATION CONTACT: Neil Fried, Common Carrier Bureau, 
    (202) 418-1520; TTY: (202) 418-0484.
    
    SUPPLEMENTARY INFORMATION:
    
    A. Background
    
        1. To provide interstate telecommunications services, interexchange 
    carriers (IXCs) usually rely on some of the telephone infrastructure 
    that incumbent LECs use to provide local telephone service. The 
    incumbent LEC's local loop, for example, connects a customer to the LEC 
    network so that the customer can make and receive intrastate calls. The 
    incumbent LEC's local loop also connects the customer to the networks 
    of IXCs so that the customer can make and receive interstate calls. 
    Consequently, a portion of the costs an incumbent LEC incurs in 
    providing this common infrastructure is allocated to intrastate service 
    and recovered pursuant to state regulation, and a portion is allocated 
    to interstate service and recovered pursuant to regulations of the 
    Federal Communications Commission.
        2. The Commission adopted uniform access charge rules in 1983 to 
    govern the way incumbent LECs recover that portion of the costs of the 
    common infrastructure allocated to interstate service. Under these 
    rules, the Commission allows incumbent LECs to recover some of the 
    interstate costs of providing the local loop through a flat, monthly 
    end-user common line charge (EUCL)--sometimes called a SLC--that they 
    assess on end users. The Commission limited the amount of the SLC, 
    however, because of concerns that an excessively high SLC might cause 
    end users to disconnect their telephone service. The Commission allowed 
    the incumbent LECs to recover the
    
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    remainder of their interstate costs attributable to the local loop 
    through a per-minute carrier common line charge (CCLC) that they assess 
    on IXCs.
        3. Under principles of cost-causation, it is most economically 
    efficient for incumbent LECs to recover the costs of providing 
    interstate access in the same way that they incur them. Under such 
    principles, incumbent LECs should recover their traffic-sensitive costs 
    of interstate access through per-minute charges, and should recover 
    their non-traffic-sensitive costs through flat charges. The incumbent 
    LECs' costs of providing the local loop do not change with the number, 
    length, or type of telephone calls customers make, and so are non-
    traffic sensitive. Because of the cap on SLCs, however, incumbent LECs 
    recover some of these non-traffic-sensitive loop costs through the 
    traffic sensitive CCLC. In its May 1997 Access Charge Reform Order, the 
    Commission decided to phase out the CCLC for price cap LECs on the 
    grounds that recovering the non-traffic-sensitive loop costs through 
    traffic-sensitive charges is economically inefficient.
        4. To provide price cap LECs with a means to recover some of the 
    loop costs they previously recovered in the CCLC, the Commission raised 
    the price cap LECs' SLC caps for non-primary residential lines and 
    multi-line business lines, but chose not to raise the price cap LECs' 
    SLC caps for primary residential lines and single line business lines. 
    For 1999, the SLC cap for price cap LECs is $3.50 per month for each 
    primary residential and single line business line, $6.07 per month for 
    each non-primary residential line, and $9.20 per month for each multi-
    line business line. To address concerns that charging a higher SLC for 
    non-primary residential lines sold by price cap LECs might encourage 
    subscribers to obtain their additional residential lines from 
    resellers, the Commission decided in the Access Charge Reform Order to 
    allow price cap LECs to charge the higher SLC to carriers that resell 
    price-cap LECs' lines if the lines are non-primary.
        5. Because the SLC caps on residential and single line business 
    lines would prevent most price cap LECs from recovering through the SLC 
    all the costs they formerly recovered through the CCLC, the Commission 
    also created the PICC: a flat, per-line charge that price cap LECs may 
    assess on an end user's presubscribed IXC. As with the SLC, the 
    Commission set higher PICC caps for non-primary residential lines and 
    multi-line business lines than for primary residential lines and single 
    line business lines. Through June 30, 1999, the PICC cap is $0.53 per 
    month for each primary residential and single line business line, $1.50 
    per month for each non-primary residential line, and $2.75 per month 
    for each multi-line business line. As a result of the various caps, the 
    lines of customers that subscribe to single residential or business 
    lines are not assessed the entire cost of the loops. Until the access 
    reform rate structure is fully phased in, these lines are subsidized by 
    customers that subscribe to multiple business lines.
        6. The Commission sought comment in a September 1997 notice of 
    proposed rulemaking (Notice) on whether to modify its rules to provide 
    for the definition, identification, and verification of primary 
    residential lines and single line business lines. 62 FR 48042, 
    September 12, 1997; 12 FCC Rcd 13647. Choosing appropriately balanced 
    definitions is important because as primary residential and single line 
    business line counts increase, so, too, does the subsidy that multi-
    line business line customers must bear during the phase-in of the 
    access reform rate structure.
    
    B. Definition of Primary Residential Line
    
    1. Background
    
        7. The Commission's rules currently do not define ``primary 
    residential line.'' The Commission sought comment in the Notice on 
    whether to define the primary residential line as the primary line of a 
    residence, of a household, of a subscriber, or on some other basis. 
    Under a residence definition, only one line per service location--such 
    as a house or an apartment--would receive primary line status. Under a 
    household definition, each family unit would receive one primary line, 
    so that if multiple families live in one house, each family would 
    receive one line at rates with the lower caps. Under a subscriber 
    definition, one line would be given primary-line status for each 
    account opened with the carrier.
        8. In the meantime, each price cap LEC devised its own definition 
    for the purpose of its 1998 access tariff filings. The Commission 
    concluded in its investigation of those tariff filings that, pending 
    completion of this rulemaking proceeding, defining as a primary line 
    either one line per residence or one line per billing-name account per 
    residence was ``not unreasonable'' for purposes of the tariff filings. 
    The Commission also found that reasonable definitions of primary and 
    non-primary residential lines should, at a minimum, ``categorize a 
    second residential line as non-primary if the line is billed to the 
    same name at the same location.''
        9. In the Notice, the Commission tentatively concluded that price 
    cap LEC records might be inadequate to identify primary residential 
    lines, particularly if the Commission adopted a household-based 
    definition. Based on the presumption that identifying primary 
    residential lines without information from the customer would be more 
    administratively burdensome, the Commission tentatively concluded to 
    permit price cap LECs to use end-user self-certification to identify 
    primary lines.
    
    2. Discussion
    
        10. Some commenters have supported each of the definitions of 
    primary residential line that the Commission identified in the Notice: 
    household-based, account-based, and location-based. None of these 
    definitions is flawless. An account-based definition, for example, 
    would permit a subscriber to have multiple primary lines by ordering 
    each line under a different account name. A location-based definition 
    does not permit subscribers who share the same address, such as 
    housemates, each to have his or her own primary line. A household-based 
    definition would present carriers, consumers, and the Commission with 
    the ambiguous and administratively burdensome task of determining which 
    subscribers are part of which households. We have balanced the 
    advantages and disadvantages of each option. We conclude that a 
    location-based definition is the least intrusive and most 
    administratively feasible definition that fulfills the Access Charge 
    Reform Order's objectives for setting higher SLC and PICC caps for non-
    primary residential lines and multi-line business lines.
        11. Thus, we will consider one residential line provided by a price 
    cap LEC per service location to be a primary residential line. For 
    example, only one line per house, per apartment, or per college dorm 
    room will receive primary-line rates. We begin by noting along with a 
    number of commenters that LECs can implement this definition based on 
    their service records. As the Commission stated in the Notice, a 
    location-based definition is ``administratively simple and less 
    invasive of subscribers' privacy because it does not require the 
    gathering of information regarding subscriber living arrangements that 
    would be needed to identify households.'' Consequently, this definition 
    obviates the need for the self-certification procedure that the 
    Commission outlined in the Notice, a
    
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    procedure that the Office of Management and Budget (OMB) argues would 
    be ineffective and burdensome. A customer's service location is also 
    straightforward to determine and not something the customer can easily 
    alter or misreport to obtain the primary-line rate. This definition 
    will require carriers to cross-check records within a service location 
    to ensure that only one subscriber line per residence receives the 
    primary-line rates, but sorting records by service location should be 
    relatively easy. Furthermore, many price cap LECs are already moving 
    toward a location-based definition in their tariffs.
        12. The Commission's rules that establish PICCs and set different 
    SLC caps for primary residential lines than for non-primary residential 
    lines apply only to price cap LECs, not to rate-of-return LECs. 
    Consequently, the definition of primary residential line shall apply 
    only to price cap LECs. The Commission has sought comment on whether to 
    apply to rate-of-return LECs the rules regarding PICCs and the higher 
    caps for non-primary residential lines, but has not issued an order 
    resolving that issue. Should the Commission decide at a later date to 
    apply such rules to rate-of-return LECs, the Commission will address at 
    that time how to define, identify, and verify primary residential lines 
    and single line business lines for rate-of-return LECs. Thus the 
    Commission does not address issues that the Notice raised regarding 
    rate-of-return LECs.
        13. A number of commenters oppose the location-based definition 
    because it allows only one primary line per multi-subscriber residence. 
    If, for example, two roommates each subscribe to a line, only one line 
    will be billed at the primary-line rate. Generally, however, only a 
    single residential connection is necessary to permit all residents at a 
    particular service location complete access to telecommunications and 
    information services, including access to emergency services.
        14. If a subscriber has both a primary and secondary home, this 
    definition would also treat one line in each home as primary. We note 
    that this definition departs from current practice in the business 
    context, under which a business with one line in each of multiple 
    locations in the same telephone company area receives multi-line 
    business rates on each line. We find it unnecessary to extend this 
    policy to the residential context. As many comments point out, the 
    burden of investigating whether a particular residential subscriber has 
    lines in multiple residences outweighs any benefit from collecting the 
    higher non-primary line rates, especially as the number of subscribers 
    with multiple residences, and thus the number of lines that would be 
    reclassified from primary to non-primary, is likely only a small 
    percentage of all residential lines. Furthermore, in many instances 
    different incumbent LECs will serve the primary and secondary 
    residences. This further complicates the task of determining which 
    subscribers have multiple residences, and raises the difficult question 
    of which line would be deemed the primary line, assuming the subscriber 
    could have only one primary line throughout all his or her residences. 
    We also note that the number of residential subscribers is larger than 
    the number of business subscribers.
        15. We will look at all lines provided by a particular price cap 
    LEC, whether sold by the price cap LEC or a reseller, when determining 
    the status of the lines to a residence. We do so to address concerns 
    that charging higher rates for non-primary residential lines sold by 
    price cap LECs might encourage subscribers to obtain their additional 
    lines from resellers for no reason other than to avoid the higher SLC. 
    Consequently, we do not accept the invitation of some commenters to 
    qualify our definition further by treating as primary one line per 
    location per service provider. Doing so would create an artificial 
    incentive for subscribers to spread their lines out among price cap 
    LECs and multiple resellers merely to avoid the higher SLCs and PICCs 
    associated with non-primary residential lines.
        16. We do not seek to discourage subscribers from ordering services 
    from multiple providers, but also do not want to create an artificial 
    incentive for them to do so. Thus, when a price cap LEC has already 
    sold a line to a residence, the price cap LEC may assess the higher 
    rates on any additional resold lines. If, however, a resold price cap 
    LEC line is the primary line, as is the case when all the lines to the 
    residence are purchased from one or more resellers, the resold line 
    will remain the primary line should a price cap LEC subsequently sell 
    an additional line to that residence. If the price cap LEC line and 
    resold line are sold simultaneously, the price cap LEC line shall be 
    the primary line. When lines are sold to a location by both a price cap 
    LEC and at least one reseller of price cap LEC lines, one of the lines 
    must be identified as primary, but which one will have little impact on 
    the end user: whichever line is deemed primary, the sum of the SLC and 
    PICC charges to the consumer will be the same. Because the price cap 
    LEC is physically providing both lines, we think it reasonable that it 
    get the primary line designation in the rare circumstance that both 
    lines are sold simultaneously.
        17. Lines sold by wireless carriers and competitive LECs that do 
    not resell price cap LEC lines shall not be considered in determining 
    residential line status. Such carriers are not rate regulated by the 
    Commission and are not subject to the Commission's rules regarding SLCs 
    and PICCs. Nor do price cap LECs collect SLCs or PICCs on those 
    carriers' lines. This approach is equitable as between price cap LECs, 
    resellers, competitive LECs, and wireless carriers because it does not 
    provide any artificial advantage in marketing second lines. 
    Furthermore, a price cap LEC would have difficulty determining whether 
    its customers are also receiving lines from non-reselling competitive 
    LECs or wireless carriers.
        18. We will not adopt a household-based definition of primary 
    residential line. Although such a definition would allow multiple 
    primary lines in multi-household residences (e.g., one for each family 
    in a multi-family dwelling), it would also require gathering invasive 
    information concerning living arrangements through a self-certification 
    mechanism that would be administratively burdensome given the large 
    universe of customers. The ambiguity of a household-based definition 
    may also result in inconsistent application across subscribers, or 
    encourage subscribers simply to declare themselves part of different 
    households to receive the lower primary-line rates.
        19. Nor will we treat one line per subscriber account as primary. 
    Such a definition would allow multiple subscribers at a single location 
    to receive the lower primary-line rates on each line (e.g., roommates 
    with individual accounts). Some commenters view this as an advantage to 
    the definition. Any such advantage, however, is offset by the ability 
    of a subscriber to game such a definition by obtaining multiple lines 
    under different account names. Some carriers even allow customers to 
    obtain separate accounts under the same name. Furthermore, universal 
    service objectives are met so long as residents at a single location 
    have access to one line at that location at the subsidized primary-line 
    rates; allowing more than one such line per location excessively shifts 
    costs onto other subscribers. We agree with commenters that an account-
    based definition is unambiguous and compatible with most carriers' 
    existing service records, but so too is a location-
    
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    based definition. An account-based definition would eliminate the need 
    to check whether multiple subscribers are receiving lines at the same 
    location, but the definition's other shortcomings outweigh this 
    benefit. In any event, as noted above, sorting records by service 
    location should not be difficult.
        20. We also do not adopt the suggestion of some commenters that we 
    eliminate the primary/non-primary line distinction, perhaps by applying 
    an averaged rate to all lines or replacing the PICC with a cost-based 
    SLC. The Commission has, in the past, specifically decided not to raise 
    the SLC caps on primary residential lines, in accordance with the 
    recommendations of the Federal-State Joint Board on Universal Service. 
    A narrow proceeding such as this is not the appropriate forum for 
    considering a SLC increase.
    
    C. Definition of Single Line Business Line
    
    1. Background
    
        21. The Commission's rules for price cap LECs state that ``[a] line 
    shall be deemed to be a single line business subscriber line if the 
    subscriber pays a rate that is not described as a residential rate in 
    the local exchange service tariff and does not obtain more than one 
    such line from a particular telephone company.'' 47 CFR 69.152(i). The 
    Commission defines ``telephone company'' for the purposes of the Part 
    69 Rules as ``an incumbent local exchange carrier.'' See 47 CFR 
    69.2(hh). The Commission sought comment in the Notice on whether to 
    retain the definition of ``single line business line,'' and whether to 
    consider as a single line business a business with a single line in 
    each of multiple locations.
    
    2. Discussion
    
        22. We shall retain the existing definition of single line business 
    line. This definition allows incumbent LECs to assess the correct SLCs 
    and PICCs on business lines without determining whether a customer 
    receives service from other carriers.
        23. This definition treats as a single line business any business 
    that obtains one line from a price cap LEC and other lines from a 
    wireless carrier or a competitive LEC that does not resell the price 
    cap LEC's lines. As in the context of residential lines, we do not 
    include lines provided by wireless carriers and competitive LECs that 
    do not resell price cap LEC lines because such carriers are not subject 
    to the Commission's SLC and PICC requirements, and because price-cap 
    LECs do not collect SLCs or PICCs on those carriers' lines.
        24. We clarify that if a business receives lines from a price cap 
    LEC and a competitive LEC that is reselling the price cap LEC's lines, 
    all those lines shall be considered multi-line business lines. 
    Clarifying that all the lines provided by a price cap LEC become multi-
    line business lines once a customer purchases a second line provided by 
    that price cap LEC (whether sold by the price cap LEC or a reseller of 
    the price cap LEC's lines) prevents businesses from avoiding the higher 
    multi-line business charges by spreading out their lines among one 
    price cap LEC and multiple resellers of the price cap LEC's lines.
        25. Under existing practice, a business with one line in each of 
    multiple locations within a ``telephone company area'' is treated as a 
    multi-line business. We will continue that practice. Thus when a 
    business subscriber's account reflects a single line in each of two 
    locations within a particular telephone company area, the subscriber 
    will be treated as a multi-line business. Consequently, we shall 
    maintain the existing definition of single line business line, thereby 
    preserving the status quo both for price cap LECs and rate-of-return 
    LECs.
    
    D. Identification of Primary Residential and Single Line Business 
    Lines
    
    1. Background
    
        26. As discussed, the Commission tentatively concluded in the 
    Notice to permit price cap LECs to use end-user self-certification to 
    identify primary lines. The Commission also sought comment on whether 
    to require resellers to relay primary- and non-primary-line data to 
    price cap LECs, or whether price cap LECs should identify the primary 
    and non-primary lines of resellers' customers directly. Thus, if 
    resellers collected self-certifications, the Commission asked whether 
    resellers should be required to provide those certifications to price 
    cap LECs so that the price cap LECs could assess on the resellers the 
    appropriate SLCs. The Commission tentatively concluded that it would 
    not use databases, county and municipal records, or social security 
    numbers to identify primary lines because such proposals are 
    administratively burdensome and raise privacy concerns.
    
    2. Discussion
    
        27. The definitions of primary residential line and single line 
    business line will enable price cap LECs to use their service records 
    to identify the status of their lines. This approach alleviates the 
    concerns that carrier records would be insufficient to identify line-
    status, as those concerns were directed primarily at a household-based 
    definition of primary residential line. Carriers will have the 
    necessary information in their existing service records; thus, allowing 
    carriers to use their records is the least burdensome option for 
    carriers, consumers, and the Commission, and minimizes privacy 
    concerns. Carrier records are also relatively easy to verify and 
    reasonably immune from gaming or misreporting by customers, willful or 
    otherwise.
        28. Consequently, we need not address various administrative and 
    privacy issues related to the self-certification method discussed in 
    the Notice. Price cap carriers are, of course, still subject to 
    tariffing requirements, and the Commission can always examine carriers' 
    line counts in a tariff investigation. We note, also, that carriers are 
    governed by statutory and regulatory restraints regarding the treatment 
    of customer information to the extent that they apply to data regarding 
    line status.
        29. We will require each price cap LEC to identify the status of 
    the lines it provides to resellers. We are not persuaded by commenters' 
    arguments that requiring price cap LECs to determine the status of 
    other carriers' lines will raise administrative and confidentiality 
    concerns. Most of these comments focused on the difficulties of 
    identifying lines provided by facilities-based competitive LECs, not 
    resellers of price cap LECs' lines, or presumed a self-certification 
    procedure. We believe that the price cap LECs are in a better position 
    going forward than the resellers to know all their lines going to a 
    particular residence, as their service records indicate both the lines 
    the price cap LECs bill and the lines they provide on behalf of 
    resellers. Thus, we will not require resellers to identify their 
    primary and non-primary lines to price cap LECs. The issues the 
    Commission raised in the Notice regarding the exchange of information 
    between price cap LECs and resellers are largely mooted by our decision 
    to adopt a location-based definition of primary line and to allow 
    carriers to use service records rather than self-certification to 
    identify line status. Because of that decision, as well as our 
    clarification of the single line business line definition, price cap 
    LECs will have the information necessary to administer the definitions, 
    eliminating the need to share data with, or collect data from, other 
    carriers.
    
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    E. Customer Notification
    
        30. Because the distinction between primary and non-primary 
    residential lines may cause customer confusion, the Commission sought 
    comment in the Notice on whether to require carriers to provide 
    consumers with a uniform disclosure statement describing the 
    distinction. The Commission tentatively concluded that such a 
    disclosure requirement would be consistent with applicable First 
    Amendment standards, and sought comment on that conclusion. The 
    Commission also sought comment on how, if it adopts a consumer 
    disclosure statement that refers to the SLC cap on non-primary lines, 
    such disclosure statement should indicate any future increases in the 
    SLC cap. The Commission sought comment on whether such a statement 
    would be compatible with marketing and consumer information campaigns 
    that carriers have instituted or may be formulating. The Commission has 
    issued a Notice of Proposed Rulemaking in CC Docket No. 98-170 focused 
    on truth-in-billing. 63 FR 55077, October 14, 1998; Truth-in-Billing, 
    CC Docket No. 98-170, Notice of Proposed Rulemaking, FCC 98-232 (rel. 
    Sept. 17, 1998). We think it more appropriate to consider these issues 
    in connection with that docket. Consequently, we refer these issues to 
    that proceeding.
    
    F. Detailed PICC Billing of IXCs
    
        31. AT&T, MCI, and Sprint have asked the Commission to require 
    price cap LECs to issue detailed bills that enable interexchange 
    carriers to audit the PICC charges that price cap LECs assess on them. 
    Creating additional requirements is not necessary at this time. We 
    already require price cap LECs to provide interexchange carriers with 
    customer-specific information about the PICCs they assess on them, and 
    to include a ``class of customer'' indicator on Customer Account Record 
    Exchange (CARE) transactions for new customer notifications. 
    Furthermore, our decisions in the order concerning the definition and 
    identification of primary residential lines and single line business 
    lines should facilitate clearer and more uniform billing of SLCs and 
    PICCs.
    
    G. Procedural Matters
    
    1. Final Regulatory Flexibility Analysis
    
        32. The Commission incorporated an Initial Regulatory Flexibility 
    Analysis (IRFA) in the Notice in this docket, as required by the 
    Regulatory Flexibility Act (RFA). See 5 U.S.C. 603. The Commission 
    sought written public comment on the proposals in the Notice, including 
    comment on the IRFA. The RFA also requires the Commission to prepare a 
    Final Regulatory Flexibility Analysis (FRFA) of the possible 
    significant economic impact the order might have on small entities, 
    unless the agency certifies that ``the rule will not, if promulgated, 
    have a significant economic impact on a substantial number of small 
    entities.'' 5 U.S.C. 605(b).
        33. The RFA generally defines ``small entity'' as having the same 
    meaning as the terms ``small business,'' ``small organization,'' and 
    ``small governmental jurisdiction.'' 5 U.S.C. 601(6). In addition, the 
    term ``small business'' has the same meaning as the term ``small 
    business concern'' under the Small Business Act, unless the Commission 
    has developed one or more definitions that are appropriate to its 
    activities. 5 U.S.C. 601(3). 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 Small Business Administration (SBA). Small Business Act, 15 U.S.C. 
    632. The SBA has further defined a small business for SIC categories 
    4812 (Radiotelephone Communications) and 4813 (Telephone 
    Communications, Except Radiotelephone) as a business with no more than 
    1,500 employees. 13 CFR 121.201. A small organization is generally 
    ``any not-for-profit enterprise which is independently owned and 
    operated and is not dominant in its field.'' 5 U.S.C. 601(4). ``Small 
    governmental jurisdiction'' generally means ``governments of cities, 
    counties, towns, townships, villages, school districts, or special 
    districts, with a population of less than 50,000.'' 5 U.S.C. 601(5).
        34. Only price cap LECs currently assess SLCs and PICCs, and the 
    order places the responsibility for differentiating and identifying 
    primary residential lines and single line business lines only on price 
    cap LECs, as discussed above. Consequently, the order will not 
    significantly affect ``small organizations'' or ``small governmental 
    jurisdictions,'' and we only address the impact on small price cap 
    LECs. Neither the Commission nor SBA has developed a definition of 
    ``small entity'' specifically applicable to price-cap LECs. The closest 
    definition under SBA rules is that for establishments providing 
    ``Telephone Communications, Except Radiotelephone.''
        35. According to our most recent data, 1,371 carriers reported that 
    they were engaged in the provision of local exchange services. Fewer 
    than 20 of these carriers are price-cap incumbent LECs. Consistent with 
    our prior practice, we shall continue to exclude small incumbent LECs 
    from the definition of ``small entity.'' We consider these carriers 
    dominant in their field of operations. Some also are not independently 
    owned and operated, and most if not all likely have more than 1,500 
    employees. We therefore certify that our decisions in this proceeding 
    will not have a significant economic impact on a substantial number of 
    small entities. The Commission will send a copy of the order, including 
    the certification, 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). A summary of the order and the certification will 
    also be sent to the Chief Counsel for Advocacy of the SBA.
    
    2. Final Paperwork Reduction Act Analysis
    
        36. The decision contained herein has been analyzed with respect to 
    the Paperwork Reduction Act of 1995, Public Law No. 104-13, and does 
    not contain new and/or modified information collections subject to OMB 
    review.
    
    H. Ordering Clauses
    
        37. Accordingly, it is ordered, pursuant to sections 1, 4(i) and 
    (j), 201-209, 218-222, 251, 254, and 403 of the Communications Act of 
    1934, as amended, 47 U.S.C. 151, 154(i), 154(j), 201-209, 218-222, 251, 
    254, and 403, that the order is adopted.
        38. It is further ordered that section 69.152 of the Commission's 
    rules, 47 CFR 69.152, is amended as set forth in the rule changes.
        39. It is further ordered that the policies, rules, and 
    requirements adopted herein shall be effective July 1, 1999.
        40. It is further ordered that the Commission's Office of Public 
    Affairs, References Operations Division, shall send a copy of the 
    Report and Order, including the Final Regulatory Flexibility 
    Certification, to the Chief Counsel for Advocacy of the Small Business 
    Administration.
    
    List of Subjects in 47 CFR Part 69
    
        Access charges, Communications common carriers, End-user common 
    line charge, Multi-line business line, Non-primary residential line, 
    Price cap local exchange carriers, Primary interexchange carrier 
    charge, Primary residential line, Reporting and recordkeeping 
    requirements, Single line business line, Subscriber line charge, 
    Telephone.
    
    
    [[Page 16358]]
    
    
    Federal Communications Commission.
    Magalie Roman Salas,
    Secretary.
    
    Rule Changes
    
        For the reasons discussed in the preamble, the Federal 
    Communications Commission amends 47 CFR part 69 as follows;
    
    PART 69--ACCESS CHARGES
    
        1. The authority citation for part 69 continues to read as follows:
    
        Authority: 47 U.S.C. 154, 201, 202, 203, 205, 218, 220, 254, 
    403.
    
        2. Section 69.152 is amended by adding paragraph (h) to read as 
    follows:
    
    
    Sec. 69.152  End user common line for price cap local exchange 
    carriers.
    
    * * * * *
        (h) Only one of the residential subscriber lines a price cap LEC 
    provides to a location shall be deemed to be a primary residential 
    line.
        (1) For purposes of Sec. 69.152(h), ``residential subscriber line'' 
    includes residential lines that a price cap LEC provides to a 
    competitive LEC that resells the line and on which the price cap LEC 
    may assess access charges.
        (2) If a customer subscribes to residential lines from a price cap 
    LEC and at least one reseller of the price cap LEC's lines, the line 
    sold by the price cap LEC shall be the primary line, except that if a 
    resold price cap LEC line is already the primary line, the resold line 
    will remain the primary line should a price cap LEC subsequently sell 
    an additional line to that residence.
    * * * * *
    [FR Doc. 99-7787 Filed 4-2-99; 8:45 am]
    BILLING CODE 6712-01-P
    
    
    

Document Information

Effective Date:
7/1/1999
Published:
04/05/1999
Department:
Federal Communications Commission
Entry Type:
Rule
Action:
Final rule.
Document Number:
99-7787
Dates:
July 1, 1999.
Pages:
16353-16358 (6 pages)
Docket Numbers:
CC Docket No. 97-181, FCC 99-28
PDF File:
99-7787.pdf
CFR: (1)
47 CFR 69.152