[Federal Register Volume 63, Number 176 (Friday, September 11, 1998)]
[Rules and Regulations]
[Page 48634]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-24276]
[[Page 48634]]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 54 and 69
[CC Docket No. 96-45; DA 98-1581]
Federal-State Joint Board on Universal Service
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: In this document, the Commission clarifies the application of
the Commission's ``lowest corresponding price'' requirement set forth
in the Universal Service Order, 62 FR 32862 (June 17, 1997). The
Commission clarifies that this requirement was not intended to preempt
state law, and does not obligate carriers to offer rates that would
violate state laws.
EFFECTIVE DATE: September 11, 1998.
FOR FURTHER INFORMATION CONTACT: Kaylene Shannon, Attorney, Common
Carrier Bureau, Accounting Policy Division, (202) 418-7400.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's
document released on August 7, 1998. The full text of this document is
available for public inspection during regular business hours in the
FCC Reference Center, Room 239, 1919 M Street, N.W., Washington, D.C.,
20554. This document is also available from the Commission's copy
contractor, International Transcription Service, 1231 20th Street,
N.W., Washington, D.C. 20036.
I. Background
1. In the Universal Service Order, 62 FR 32862 (June 17, 1997), the
Commission provided that schools and libraries should be eligible to
apply for discounted telecommunications services, Internet access, and
internal connections, subject to certain limitations and conditions.
The Universal Service Order concluded that, to ensure that their lack
of experience in dealing with telecommunications providers does not
prevent schools and libraries from receiving competitive prices,
service providers must offer services to eligible schools and libraries
at prices no higher than the lowest price the provider charges to
similarly situated non-residential customers for similar services. The
Commission clarified that, for purposes of determining the lowest
corresponding price, similar services would include those provided
under contract as well as those provided under tariff. The Commission
established a rebuttable presumption that rates offered within the
previous three years are compensatory.
2. In the Fourth Reconsideration, 63 FR 2093 (January 13, 1998),
the Commission concluded that earlier versions of tariffs that have
been modified should be included in the comparable rates upon which the
lowest corresponding rate is determined, ``[u]nless a regulatory agency
has found that the tariffed rate should be changed, and affirmatively
ordered such change, or absent a showing that the rate is not
compensatory.'' A question has been raised whether the lowest
corresponding rate can be based on rates not lawfully offered under
state law.
II. Discussion
3. Although the Commission disagreed with the general assertion
that the lowest corresponding price should not reflect expired tariffs,
the Commission did not expressly preempt state laws governing what
rates may lawfully be offered to eligible schools and libraries. In the
absence of such an expressly stated intention to preempt, we conclude
that the Commission did not intend to require carriers to base the
lowest corresponding rate on rates that may not lawfully be offered
under state law. Thus, we interpret the Fourth Reconsideration as
requiring only that rates that may be offered consistent with state law
must be made available as the lowest corresponding price.
III. Ordering Clause
4. Accordingly, it is ordered that, pursuant to section 4(i) and
section 254 of the Communications Act of 1934, as amended, 47 U.S.C.
154(i) and 254, and sections 0.91 and 0.291 of the Commission's rules,
47 CFR 0.91 and 0.291, the lowest corresponding price requirement is
clarified.
List of Subjects
47 CFR Part 54
Healthcare providers, Libraries, Reporting and recordkeeping
requirements, Schools, Telecommunications, Telephone.
47 CFR Part 69
Communications common carriers, Reporting and recordkeeping
requirements, Telephone.
Federal Communication Commission.
Kathryn C. Brown,
Chief, Common Carrier Bureau.
[FR Doc. 98-24276 Filed 9-10-98; 8:45 am]
BILLING CODE 6712-01-P
