[Federal Register Volume 64, Number 115 (Wednesday, June 16, 1999)]
[Rules and Regulations]
[Pages 32206-32207]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-14792]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 51
[CC Docket No. 96-98; FCC 99-86]
Implementation of the Local Competition Provisions of the
Telecommunications Act of 1996; Deaveraged Rate Zones for Unbundled
Network Elements
AGENCY: Federal Communications Commission.
ACTION: Final rule; temporary stay.
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SUMMARY: In this Order, the Commission temporarily stays the
effectiveness of its
[[Page 32207]]
rule requiring each state to establish at least three geographic rate
zones for unbundled network elements and interconnection. The
Commission issues the stay to afford the states an opportunity to bring
their own rules into compliance with the Commission's rule, in light of
the U.S. Supreme Court's recent decision in AT&T v. Iowa Utils. Bd.
DATES: Effective May 7, 1999, 47 CFR 51.507(f), published at 61 FR
45476 (August 29, 1996), is stayed indefinitely. The Commission will
publish in the Federal Register at a later date the date that the stay
expires.
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,
Competitive Pricing Division, (202) 418-1530; TTY: (202) 418-0484.
SUPPLEMENTARY INFORMATION: In the Local Competition Order, the
Commission promulgated certain rules to implement section 251 of the
Communications Act of 1934, as amended. 61 FR 45476; 11 FCC Rcd 15499
(1996). One such rule, section 51.507(f), requires each state
commission to ``establish different rates for [interconnection and
unbundled network elements] in at least three defined geographic areas
within the state to reflect geographic cost differences.'' 47 CFR
51.507(f). The Commission released the Local Competition Order on
August 8, 1996. A number of parties, including incumbent LECs and state
commissions, appealed the order shortly thereafter. The U.S. Court of
Appeals for the Eighth Circuit stayed the effectiveness of the section
251 pricing rules on September 27, 1996. Iowa Utils. Bd. v. FCC, 96
F.3d 1116 (8th Cir. 1996) (per curium) (temporarily staying the Local
Competition Order until the filing of the court's order resolving the
petitioners' motion for stay). See also Iowa Utils. Bd. v. FCC, 109
F.3d 418 (8th Cir.) (dissolving temporary stay and granting
petitioners' motion for stay, pending a final decision on the merits of
the appeal), motion to vacate stay denied, 117 S. Ct. 429 (1996). On
July 18, 1997, the Court of Appeals vacated these rules, including
Section 51.507(f) on deaveraging, on the grounds that the Commission
lacked jurisdiction. Iowa Utils. v. FCC, 120 F.3d 753, 800 n.21, 819
n.39, 820 (8th Cir. 1997). On January 25, 1999, however, the U.S.
Supreme Court reversed the Eighth Circuit's decision with regard to the
Commission's section 251 pricing authority, and remanded the case to
the Eighth Circuit for proceedings consistent with the Supreme Court's
opinion. AT&T v. Iowa Utils. Bd., 119 S. Ct. 721, 733, 738 (1999).
In this Order, the Commission stays the effectiveness of section
51.507(f) until six months after the Commission issues its order in CC
Docket No. 96-45 finalizing and ordering implementation of high-cost
universal service support for non-rural LECs under section 254 of the
Act. The six-month period shall run from the Commission's release of
that order. Neither petitions for reconsideration nor appeals of that
order shall have any bearing on the length of the stay.
The Commission found good cause to issue such a stay. See 47 CFR
1.3 (allowing the Commission to suspend its rules for good cause).
Because of the Eighth Circuit's decisions, the section 251 pricing
rules were not in effect for approximately two-and-a-half years. During
that time, not all states established at least three deaveraged rate
zones for unbundled network elements and interconnection. Some have
taken no action yet regarding deaveraging; others have affirmatively
decided to adopt less than three zones. A temporary stay will
ameliorate the disruption that would otherwise occur, and will afford
the states an opportunity to bring their rules into compliance with
section 51.507(f).
A number of parties argued that the Commission made the appropriate
policy decisions regarding deaveraging when it issued the Local
Competition Order, and that implementation should not be further
postponed. Some contended that it may be appropriate for the Commission
to give states a reasonable amount of time to implement conforming
rules, but argue that any ``significant'' delay is unwarranted. The
Commission concluded that six months following the Commission's order
in CC Docket No. 96-45 represents an appropriate length for the stay.
State and federal regulators now have the benefit of not only a variety
of court decisions, but also nearly three more years of experience and
data. The stay will allow the states and the Commission a sufficient,
but not excessive, amount of time to bring their rules into compliance
in a manner coordinated with reform of universal service.
The Commission recognized the possibility that the three-zone rule
may not be appropriate in all states. In some states, for instance,
local circumstances may dictate the establishment of only two
deaveraged rate zones. The Commission stated that it intends to address
such situations on a case-by-case basis. States may file waiver
requests with the Commission seeking relief from the general rule in
light of their particular facts and circumstances. See 47 CFR 1.3
(allowing the Commission to waive any provision of its rules based on a
petition if good cause is shown).
List of Subjects in 47 CFR Part 51
Communications common carriers, Deaveraged rate zones,
Interconnection, Local competition, Pricing of elements,
Telecommunications, Unbundled network elements.
Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 99-14792 Filed 6-15-99; 8:45 am]
BILLING CODE 6712-01-P
