[Federal Register Volume 59, Number 99 (Tuesday, May 24, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-12603] [[Page Unknown]] [Federal Register: May 24, 1994] ----------------------------------------------------------------------- FEDERAL COMMUNICATIONS COMMISSION 47 CFR Part 64 [CC Docket No. 92-256, FCC 94-58] Common Carriers; Open Network Architecture Requirements an Nondiscrimination Safeguards AGENCY: Federal Communications Commission. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Commission adopted an order applying to GTE Corporation the same regulatory framework of Open Network Architecture (ONA) requirements and nondiscrimination safeguards that apply to the Bell Operating Companies (BOCs) for GTE's participation in the enhanced services market. Under this order, GTE will be required to file an ONA plan within nine months of the release of this order, file federal and state ONA tariffs three months later, and implement ONA requirements and nondiscrimination safeguards fifteen months from the release of this order. The Commission stated that the public interest benefits of applying these measures to GTE amply justify its taking the next logical step toward an overall environment that will foster a fully competitive market for the provision of enhanced services to the American public. EFFECTIVE DATE: June 23, 1994. FOR FURTHER INFORMATION CONTACT: Peggy Reitzel, Policy and Program Planning Division, Common Carrier Bureau (202) 632-1300. SUPPLEMENTARY INFORMATION: Paperwork Reduction Act The requirements have been analyzed with respect to the Paperwork Reduction Act of 1980, as amended, 44 U.S.C. Sec. Sec. 3501-20. The information collection contained herein is not subject to the clearance provisions of 44 U.S.C. 3507 because it is imposed on less than nine respondents. Regulatory Flexibility Act In the NPRM the Commission certified that the Regulatory Flexibility Act of 1980 did not apply to this proceeding because the rule amendments 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. The rule changes directly apply only to GTE which is considered dominant in its field of operation. Neither the Chief Counsel for Advocacy of the Small Business Administration nor any commenting party challenged the Commission's analysis. The Secretary of the Commission is required to send a copy of this Report and Order, including the certification, to the Chief Counsel for Advocacy of the Small Business Administration in accordance with paragraph 605(b) of the regulatory Flexibility Act. Pub. L. No. 96-354, 94 Stat. 1164, 5 U.S.C. Section 601 et seq. Summary of Report and Order 1. This is a summary of the Report and Order in Common Carrier Docket No. 92-256, Application of Open Network Architecture and Nondiscrimination Safeguards to GTE Corporation, adopted March 8, 1994, and released April 4, 1994 (FCC 94-58). The full text of the Commission's decision is available for inspection and copying, Monday through Friday, 9 a.m.--4:30 p.m., in the FCC Reference Room (room 239), 1919 M Street, NW., Washington, DC 20554. The complete text of the Report and Order may also be purchased from the Commission's copy contractor, ITS, Inc., (202) 857-3800, 2100 M Street, NW., suite 140, Washington, DC 20037. 2. Over the last eight years, the Commission established a comprehensive regulatory framework of nonstructural safeguards, including Open Network Architecture (ONA) requirements and nondiscrimination safeguards, to govern the Bell Operating Companies' (BOCs') participation in the enhanced services marketplace. Under ONA, BOCs are required to offer unbundled ONA services to enhanced service providers (ESPs). By requiring the BOCs to offer unbundled network services to ESPs, ONA increases opportunities for enhanced services providers (ESPs) to provide, and customers to receive, a wide range of enhanced services. The nondiscrimination safeguards consist of Customer Proprietary Network Information (CPNI) rules, Network Information Disclosure rules, and nondiscrimination reporting requirements. 3. The Commission initially did not require local telephone companies other than the BOCs to comply with ONA requirements and nondiscrimination safeguards. The Commission stated that it would revisit the issue of applying these requirements to GTE once initial ONA implementation by the BOCs was completed. After gaining substantial experience with the BOCs, on December 2, 1992, the Commission released a Notice of Proposed Rulemaking (NPRM) to seek comment on its proposal to apply to GTE the ONA requirements and nondiscrimination safeguards that govern the BOCs' participation in the enhanced services market (57 FR 62544, Dec. 21, 1992). 4. In the Report and Order adopted March 8, 1994 (FCC 94-58), the Commission decided that it should no longer exempt GTE from complying with ONA requirements and nondiscrimination safeguards. The Commission concluded that applying these measures to GTE will extend greater access to the largest non-BOC local telephone company, thus facilitating the provision of additional information age services and greater price competition to consumers. 5. GTE's primary argument against the imposition of these requirements appeared to be the implementation costs. The Commission, however, concluded that the benefits of applying these requirements to GTE substantially outweigh the costs involved based on GTE's estimated implementation costs. The Commission concluded that the implementation costs are not greatly affected by inclusion of GTE's more dispersed, rural service areas because, according to GTE, the costs of implementing ONA are primarily fixed costs related to modifying GTE's centralized systems. 6. In addition, the Commission concluded that GTE, by many measures, is one of the largest local telephone companies in the United States. When compared to the BOCs, GTE ranks second behind BellSouth in total operating revenue, total gross plant, and the number of employees. While GTE has many service areas that are smaller and more rural than those of the BOCs, it has more working loops than Southwestern Bell even if GTE study areas with less than 200,000 working loops are excluded. GTE also serves a number of major urban areas in Florida, California, Hawaii, and Texas, that resemble BOC service areas. The Commission concluded that consumers in GTE's large service areas would benefit substantially from an environment that fosters the competitive provision of enhanced services. 7. The Commission also concluded that GTE's voluntary ONA measures, while commendable, fall short of the BOC standards and cannot achieve the Commission's goals. Specifically, the Commission concluded that GTE's network disclosure and customer proprietary network information (CPNI) programs lack certain important elements contained in the BOC's requirements. Also, GTE's voluntary program does not include disclosure of important information that the BOCs must report. Thus, the Commission required GTE to implement BOC ONA requirements and comply with the BOC nondiscrimination safeguards. 8. Based on the experience gained in implementing ONA for the BOCs, the Commission was able to streamline this process for GTE. The Commission referred GTE to the numerous orders in the Computer III and ONA proceedings that provide detailed review and guidance on how it should implement ONA. The Commission required GTE to comply with the comparably efficient interconnection requirements and all other ONA requirements imposed in the Computer III and ONA proceedings. The Commission did not require that GTE detail these measures in the ONA plan it must submit to the Commission as long as GTE's ONA program follows specific procedures approved for the BOCs and is consistent with requirements set out in the ONA orders. If GTE wants to request authority to meet the requirements in a different way, it must justify the request in its ONA plan. 9. GTE is also required to participate in the Information Industry Liaison Committee (IILC) beginning thirty days after publication of this Order in the Federal Register. GTE also must report to the Commission on its progress on IILC activities as the BOCs are required to do. 10. GTE is required to demonstrate in its ONA plan that its proposed initial offering of ONA services will adequately meet the needs of enhanced service providers (ESPs) in its service areas. GTE also must comply with the ONA deployment projection reporting requirements applicable to the BOCs. This information must be filed with GTE's ONA plan nine months after release of this order. Thereafter, the deployment report must be filed annually with the other annual reports on July 31 of each year beginning July 31, 1996. GTE will also be subject to all of the annual and semi-annual ONA reporting requirements that are applicable to the BOCs, and the reports must be filed on July 31 of each year beginning July 31, 1996. In addition, GTE is required to begin providing the semi-annual tariff report that the BOCs are required to file. The Commission required GTE to begin providing this report to the Commission on September 30, 1995, and every six months thereafter. 11. The Commission also required GTE to comply with the nondiscrimination requirements that govern the BOCs' provision of enhanced services. These nondiscrimination safeguards consist of CPNI rules, network information disclosure rules, and nondiscrimination reporting requirements. The Commission stated that as a Tier 1 local exchange carrier, GTE is already fully subject to the cost accounting safeguards adopted in the BOC Safeguards Order. 12. The Commission required GTE to comply with the CPNI requirements established for the BOCs within fifteen months of the release of this Order. Since GTE may need additional time to implement password ID systems, the Commission allowed GTE two years from the release of this order to comply with the password ID requirements. GTE must describe in its ONA plan how it will meet the CPNI requirements and include the CPNI notification letter it proposes to send to its multiline business customers. 13. GTE is also required to comply with the Commission's Operations Support Systems (OSS) requirements within fifteen months from the release of this Order. The Commission also required GTE to comply with the network disclosure rules effective fifteen months from the release of this Order. GTE is not required to detail how it meets these requirements in its ONA plan as long as GTE's procedures follow specific procedures approved for the BOCs and are consistent with the Commission's requirements in a specific manner already approved for the BOCs. 14. The Commission also required GTE to comply with the nondiscrimination reporting requirements applicable to the BOCs. In particular, GTE must file an annual affidavit stating that it does not discriminate in providing ONA services to competitive ESPs and their customers, including the installation, maintenance, and quality of such services. The annual affidavit must be signed by the officer principally responsible for ONA service quality, installation, and maintenance. GTE is also required to file quarterly installation and maintenance reports using the reporting categories adopted for BOC reports unless GTE proposes and the Commission approves a different format for its quarterly report in GTE's ONA plan. GTE's initial installation and maintenance report is to cover the first full calendar quarter following the implementation date for ONA requirements and nondiscrimination safeguards and thereafter must be filed quarterly. The report for each calendar quarter is due thirty days after the close of that calendar quarter. GTE's format should be consistent with the installation and maintenance system reports required of the BOCs and described in the BOC ONA Reconsideration Order. GTE may, however, attempt to justify different service categories at a comparable level of detail. The Commission delegated authority to the Chief, Common Carrier Bureau to review and to act on any requested changes to the reporting categories. 15. The Commission concluded that the experience it has gained from its lengthy review of the BOCs' initial ONA plans and tariffs, as well as from the implementation of approved BOC ONA service offerings, will enable it to streamline the review of GTE's initial ONA service offerings. GTE shall submit an ONA plan within nine months of the release of this Order and shall file state and federal ONA tariffs for its ONA services within one year of the release of this order. The Commission required that GTE implement all ONA requirements and nondiscrimination safeguards fifteen months after the release of this order unless another time period is specified in the order. These requirements include those that have been developed in the Computer III and Computer III remand proceedings and the ONA orders, as well as any future requirements that the Commission may establish for the BOCs, unless GTE is specifically exempted. The tariffs will be subject to the requirements established in the ONA proceeding and the federal tariffs will also be subject to the pricing and other requirements of CC Docket No. 89-79, relating to the creation of access charge subelements and cost support requirements for ONA. GTE must amend its initial federal ONA tariff to include any additional requirements that are adopted so close to the GTE tariff filing date that they cannot be reflected in the initial tariff filing as soon as possible during the three month public notice period. 16. The Commission described filing dates in this order as being a certain number of months after a particular event. In such cases the filing or other such date will be the same day of the month as the triggering event, but the specified number of months later. Months shall be counted beginning with the month after the one in which the triggering event occurs. Filing dates falling on a weekend or official federal government holiday will be moved to the next business day. 17. Finally, the Commission adopted the same preemption of state network disclosure requirements for GTE that was established for the BOCs in the BOC Safeguards Order. The Commission determined that no other modification to the preemption of state requirements adopted in the BOC Safeguards Order was warranted. Ordering Clauses 18. Accordingly, It is ordered, that pursuant to Sections 1, 4 (i) and (j), 201-205, 218, 220 & 404 of the Communications Act of 1934, as amended, 47 U.S.C. 151, 154 (i) & (j), 201-205, 218, 220 & 404, and Section 553 of the Administrative Procedure Act, 5 U.S.C., 553, that the policies, rules, and requirements set forth herein are adopted. 19. It is further ordered, That GTE shall file an ONA plan nine months after release of this Order. 20. It is further ordered, That GTE shall file ONA tariffs three months after the date for filing the ONA plan. The federal tariffs shall be scheduled to become effective on three months public notice. 21. It is further ordered, That GTE shall implement ONA requirements and nondiscrimination safeguards within fifteen months from the release of this Order. 22. It is further ordered, That GTE shall provide the reports described herein. 23. It is further ordered, That GTE shall comply with the CPNI password ID requirements within two years from the release of this Order. 24. It is further ordered, That the petition to expand the scope of this proceeding filed by North American Telecommunications Association (NATA) is denied. 25. It is further ordered, That the decisions in this Report and Order shall be effective thirty days after publication in the Federal Register. List of Subjects in 47 CFR Part 64 Communications common carriers, Reporting and recordkeeping requirements, Telephone, Computer technology. Federal Communications Commission. William F. Caton, Acting Secretary. [FR Doc. 94-12603 Filed 5-23-94; 8:45 am] BILLING CODE 6712-01-M
