[Federal Register Volume 64, Number 144 (Wednesday, July 28, 1999)]
[Rules and Regulations]
[Pages 40774-40776]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-19065]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 3
[IB Docket No. 98-96, FCC 99-150]
Biennial Review
AGENCY: Federal Communications Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This document further streamlines the authorization and
regulation of privately owned accounting authorities that settle
accounts for maritime mobile, maritime satellite, aircraft and hand-
held terminal radio services. The Commission concluded that there is no
need for the Commission to act as an accounts clearinghouse for
maritime and satellite communications and that the private authorities
that the Commission has certified, acting under regulations prescribed
by the Commission and under its oversight, can successfully settle all
accounts for U.S. users of these radio services. The Commission also
concluded that Commission withdrawal as an accounting authority will
promote competition among private authorities. The Commission initiated
this proceeding pursuant to the Telecommunications Act of 1996, which
directs the Commission to undertake a review every even-numbered year
of all regulations that apply to providers of telecommunications
services to determine whether any such regulation is no longer
necessary.
DATES: Effective August 27, 1999.
FOR FURTHER INFORMATION CONTACT: John Copes, Attorney-Advisor,
Multilateral and Development Branch, Telecommunications Division,
International Bureau, (202) 418-1478.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's R&O,
FCC 99-150, adopted on June 21, 1999, and released on July 13, 1999.
The full text of this R&O is available for inspection and copying
during normal business hours in the Federal Communications Commission,
Reference Information Center (Room CY-A257), 445 12th St., SW,
Washington, DC 20554 The complete text of the R&O may also be purchased
from the Commission's copy contractor, International Transcription
Service, Inc., 1231 20th St., NW, Washington, DC 20036, (202) 857-3800.
Summary of R&O
1. In July 1998, the Commission adopted a Notice of Proposed
Rulemaking (63 FR 39800, July 24, 1998) (NPRM) to streamline further
the regulations and authorization of privately owned accounting
authorities that settle accounts in the maritime mobile and maritime
mobile-satellite radio services. Maritime mobile satellites are also
used to provide satellite-based aviation services and services to hand-
held radio terminals. In that connection the Commission proposed to
withdraw from performing the functions of an accounting authority and,
instead, to rely solely upon the private accounting authorities to
settle accounts for U.S. users of maritime and satellite
communications. The Commission also proposed to amend its rules to make
explicit the fact that certified accounting authorities are required,
in settling accounts, to deal with the public on a reasonable and
nondiscriminatory basis. The Commission also inquired into whether it
should designate a new entity to perform the function of ``accounting
authority of last resort'' the Commission has traditionally performed
whereby it settles accounts for all users who have not designated an
accounting authority at the time they made the radio communication.
2. On June 21, 1999, the Commission adopted a Report and Order and
Further Notice of Proposed Rulemaking (FCC 99-150) to make final the
proposals in its July 1999 NPRM and to institute a transition period
leading to the handing over of its functions to private accounting
authorities. A proposed rule relating to this proceeding is published
elsewhere in this issue of the Federal Register. In the R&O portion of
the document, the Commission affirmed its proposal to withdraw from
performing the functions of an accounting authority and to rely solely
upon the private accounting authorities to provide account-settlement
services for maritime and satellite communications. The Commission made
clear that it will continue to operate as administrator of all U.S.-
certified accounting authorities and the basic rules and procedures for
certifying accounting authorities and will continue to oversee the
operation of all certified accounting authorities.
3. The Commission has also made final its proposal to amend section
3.10(e) of its rules (47 CFR 3.10(e)) to make clear that private
accounting authorities are required to serve the public on a reasonable
and
[[Page 40775]]
nondiscriminatory basis in their performance of their accounts-
settlement services. The rules had already required private accounting
authorities to deal with their customers in a reasonable manner. The
Commission concluded, however, that it would be desirable upon its
withdrawal as an accounting authority to make explicit the fact that
such reasonable treatment requires accounting authorities to offer
their services to the public upon a reasonable request therefore,
without undue discrimination against any customer or class of customer,
and to charge reasonable and nondiscriminatory fees for service.
4. The Commission, however, concluded that, notwithstanding the
general requirement for nondiscriminatory treatment, it should continue
to exempt one ``grandfathered'' entity from the requirement to serve
all comers. Prior to 1996, when the Commission adopted formal rules
governing the certification and authorization of private accounting
authorities, the Commission had certified a variety of such entities on
an interim basis. Under those interim certification procedures, the
Commission had allowed one entity to become an accounting authority to
provide account-settlements services solely for its own ships. At the
time the Commission adopted formal certification rules that imposed
upon private authorities the requirement to treat all users in a
reasonable manner (section 3.10(e)), the Commission decided to exempt
that entity from the obligation of section 3.10(e) to allow it to
continue to provide services only for its own ships. The Commission
noted that the grandfathered entity had become an accounting authority
solely to serve its own ships and had stated that it has no interest in
providing account-settlement services as a business. The Commission
concluded that, because it had become an accounting authority before
there was a requirement to serve all users, it would be a hardship to
require the entity to change its operation under the 1996 rules.
Because it believes that the amendment of Section 3.10(e) does not
substantively alter the obligations contained in the prior wording of
Section 3.10(e), the Commission had proposed to continue the exemption
under the amended rule section.
Regulatory Flexibility Act
5. As required by the Regulatory Flexibility Act, 5 U.S.C. 603, we
prepared an Initial Regulatory Flexibility Analysis (IRA) of the
possible impact on small entities of the proposals contained in the
July 1999 NPRM in this proceeding. We received no comments on the IRFA.
After reviewing comments on the proposals in the NPRM, we have prepared
a Final Regulatory Flexibility Analysis (FRFA) on the rules adopted by
the R&O. The FRFA is contained in Attachment B.
6. Accordingly, it is ordered, pursuant to Sections 4(i), 4(j), 11,
201-205 and 303(r) of the Communications Act of 1934, as amended, 47
U.S.C. 154(i), 154(j), 161, 201-205 and 303(r), that this R&O is hereby
adopted.
7. It is further ordered that section 3.10(e) is amended to read as
shown in Attachment A.
8. It is further ordered that the Office of Public Affairs,
Reference Operations Division, shall send a Copy of this R&O, including
the regulatory flexibility certification, to the Chief Counsel for
Advocacy of the Small Business Administration.
Final Regulatory Flexibility Analysis
9. As required by the RFA, 5 U.S.C, 603, the Commission included an
Initial Regulatory Flexibility Analysis (IRFA) in the NPRM in this
proceeding. The Commission sought written public comment on the
proposals in the NPRM, including comment on the IRFA. This FRFA
conforms to the RFA.
A. Need for, and Objectives of, the Rule Adopted Here
10. This R&O adopts an amendment to Section 3.10 of the
Commission's Rules and Regulations to clarify that the section
obligates private accounting authorities certified by the Federal
Communications Commission to deal with the public on a non-
discriminatory basis. We do not believe that this amendment changes the
substance of the rule that the Commission adopted in 1996, which
implicitly required such non-discriminatory treatment, but believe that
it is desirable to make private accounting authorities' obligations as
clear as possible.
11. The R&O also adopts the proposal in the NPRM to continue the
exemption for one entity that had previously been certified as a
private accounting authority on an interim basis that allows it to
provide account-settlement services only for its own vessels. This
entity had obtained interim certification before the Commission imposed
an obligation for private accounting authorities to provide service to
all customers requesting it, and the Commission believes that it would
work an undue hardship to require it to change the scope of its
operations. We believe that the public has adequate opportunity to
obtain service from other private accounting authorities the Commission
has certified and that there is no reason at this time to require this
entity to serve all comers.
12. Finally, this R&O adopts the proposal in the NPRM that the
Commission will cease to act as an accounting authority, leaving the
settlement of maritime and satellite accounts to the private accounting
authorities the Commission has certified. We believe that withdrawal of
the Commission as an accounting authority will strengthen the system of
private accounting authorities the Commission has created over the
years and allow such private authorities to become more competitive. We
do not see a need for a governmental body to perform account-settlement
functions, because these functions have been performed without
difficulty by a variety of private authorities, operating under FCC
rules for many years. The Commission has concluded that there is no
reason for the FCC to continue to settle the accounts for other U.S.
government agencies. We find that the agencies have not argued that
they have any special needs with respect to the settlement of their
radio accounts that cannot be met by private accounting authorities.
The Commission did, however, note that the agencies have relied upon
the Commission to settle their accounts and conclude that the immediate
withdrawal of the Commission as an accounting authority could cause
some temporary disruption or curtailment of service to government
users. The Commission, therefore, concluded to delay its departure and
to institute a transition period. The Commission believes that such
transition period will give that agencies time to make all
preparations, including any budgetary adjustments, for shift to a
private accounting authority. The nature of the transition period will
be addressed by the FNPRM.
B. Summary of Significant Issues Raised by Public Comments in Response
to the IRFA
13. There were no comments submitted in response to the IRFA.
Because the proposed amendment of Section 3.10 made no substantive
change to the current obligation of private accounting authorities, the
adoption of the proposed amendment will have no significant impact upon
any small business entities. Similarly, the proposal to continue to
exempt one entity from the obligation to provide service to all users
on a non-discriminatory basis does not make a change from the present
situation, adoption of the proposal will not have
[[Page 40776]]
a significant impact upon a small business. The entity that was
exempted is not itself a small business. Because there are many other
private accounting authorities who are obligated to serve users on a
non-discriminatory basis, allowing the one entity to provide services
only to its own vessels will not adversely affect any small businesses
that are customers of private accounting authorities. Finally, the
decision for the FCC to withdraw as an accounting authority should not
have any significant impact upon small business entities. Even without
the FCC to settle accounts for users, there will be a sizeable number
of private accounting authorities to take over FCC functions.
C. Description and Estimate of the Number of Small Entities to Which
Rules Will Apply
14. The Commission has not developed a definition of small entities
applicable to licensees in the international services. Therefore, the
applicable definition of small entity is generally the definition under
the SBA rules applicable to Communications Services, Not Elsewhere
Classified (NEC). This definition provides that a small entity is
expressed as one with $11.0 million or less in annual receipts.
15. According to the Census Bureau, there were a total of 848
communications services providers, NEC, in operation in 1992, and a
total of 775 had annual receipts of less than $9.999 million. The
Census report does not provide more precise data. The rules proposed in
this Notice of Proposed Rulemaking, however, apply only to entities
providing account-settlement services for maritime mobile and maritime
mobile-satellite radio services. As noted, there are currently only 17
such entities. Small businesses may be able to become accounting
clearinghouses, as the establishment of such a function does not appear
to involve high implementation costs.
D. Description of Projected Recordkeeping and Other Compliance
Requirements
16. The rule amendment adopted in this R&O merely clarifies an
existing requirement imposed on accounting authorities. It, therefore,
does not alter the reporting, recordkeeping or other compliance
requirements of certified accounting authorities in the maritime
mobile, maritime mobile-satellite, aeronautical and other satellite-
based radio services. The decision to continue the exemption of one
currently certified accounting authority from the requirement to serve
the public on a non-discriminatory basis affects only that entity.
Further, because it continues the current exemption, it will not alter
that entity's recordkeeping or compliance activities. The decision of
the Commission to withdraw as an accounting authority will affect both
those now certified as accounting authorities and those who may apply
for certification in the future. The withdrawal of the Commission will
result in the transfer of the accounts that the Commission now settles
to the private accounting authorities. This should give each such
accounting authority the opportunity to compete for increased business.
The withdrawal of the Commission , however, should not increase the
recordkeeping and compliance efforts of private accounting authorities.
E. Steps Taken To Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered
17. Because the rule amendment adopted in this R&O did not alter
the obligations of any present or future certified private accounting
authority, there was no need to take any steps to minimize the impact
of the rule. Similarly, the decision of the Commission to continue the
exemption for one entity from the obligation to serve the public on a
non-discriminatory basis did not change that entity's current
obligations, there was no need to take steps to minimize the impact of
the exemption on small entities. The decision of the Commission to
withdraw as an accounting authority will increase the potential
business of currently certified accounting authorities. It also may
make additional entities decide that they would like to seek
certification as a private accounting authority. Commission withdrawal
as an accounting authority will require those who currently rely upon
the FCC to settle their maritime and satellite radio accounts will be
required to select new accounting authority from among certified
accounting authorities. It is conceivable that selection of such an
accounting authority may be more difficult for some small entities than
others. Because the Commission has delayed the effectiveness of its
withdrawal as an accounting authority until the completion of a
transition plan, small entities will not have to choose a new authority
immediately. Small entities will be able to bring any special needs to
the attention of the Commission during the preparation of the
transition plan that will be undertaken pursuant to the FNPRM.
Report to Congress
18. The Commission will send a copy of this R&O, including this
FRFA, 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).
In addition, the Commission will send a copy of the R&O, including this
FRFA to the Chief Counsel for Advocacy of the Small Business
Administration. A copy of the R&O and FRFA (or summaries thereof) will
be Published in the Federal Register. See 5 U.S.C. 604(b).
List of Subjects in 47 CFR Part 3
Accounting.
Federal Communications Commission.
William F. Caton,
Deputy Secretary.
Rule Changes
Part 3 of the Commission's Rules and Regulations Title 47 of the
Code of Federal Regulations is amended as follows:
PART 3--AUTHORIZATION AND ADMINISTRATION OF ACCOUNTING AUTHORITIES
IN MARITIME AND MARITIME MOBILE-SATELLITE RADIO SERVICES
1. The authority citation for Part 3 continues to read as follows:
Authority: 47 U.S.C. 154(i), 154(j) and 303(r).
2. Section 3.10 is amended by revising the first sentence of
paragraph (e) to read as follows:
Sec. 3.10 Basic requirements.
* * * * *
(e) Applicants must offer their services to any member of the
public making a reasonable request therefor, without undue
discrimination against any customer or class of customer, and fees
charged for providing such services shall be reasonable and non-
discriminatory. * * *
* * * * *
[FR Doc. 99-19065 Filed 7-27-99; 8:45 am]
BILLING CODE 6712-01-P
