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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the FEDERAL COMMUNICATIONS COMMISSION FCC 95-280 Washington, D.C. 20554 In the Matter of ) )CC Docket No. 93-157 Rules For the Filing of International ) Circuit Status Reports. ) REPORT AND ORDER Adopted: July 12, 1995 Released: August 9, 1995 By the Commission: I. INTRODUCTION 1. In this Report and Order (Order), the Commission reduces the regulatory burden for international carriers and makes the remaining regulatory requirements more effective. The Commission does so by: (1) codifying requirements for the filing of international circuit status reports in the Commission's Rules; (2) reducing the frequency of filing such reports from monthly to annually; (3) directing the Chief, International Bureau to prepare a filing manual with reporting requirements for the annual circuit status reports; (4) requiring all facilities-based international carriers to file such reports; (5) directing the Chief, International Bureau to specify a format for the filing of those reports; and (6) requiring the filing of such reports on computer diskettes. These reporting requirements will enable us to accurately monitor the Omnibus Budget Reconciliation Act of 1993's (the Budget Act) annual fee collection for active 64 kilobit per second (Kb/s) circuits. In addition, this Order exempts nondominant international facilities-based carriers from filing the semi-annual circuit addition reports required by Section 63.15(b) of the Commission's Rules and reduces the frequency of filing such reports by international resale carriers reselling international private lines from semi-annually to annually. II. BACKGROUND 2. In the Notice of Proposed Rule Making (NPRM), we noted that monthly circuit status reports have been filed by some U.S. international facilities-based common carriers since the early 1970's. Some of the requirements for these reports were set forth in Section 214 decisions authorizing the construction of submarine cable systems. When the reporting requirement was first initiated, all of the then existing U. S. international carriers filed reports. Not all subsequent facilities-based U.S. international carriers, however, were requested to file the monthly circuit status reports. Consequently, at present, only some of these carriers file such reports. Because no format was specified, the carriers file the reports, on paper, in a variety of formats. 3. We further noted that we have reduced substantially and streamlined our regulation of U.S. international facilities-based carriers since the monthly circuit status reports were first instituted. We have concluded that, while the information in the reports remains valuable, we no longer need it on a monthly basis. Therefore, we proposed to reduce the filing frequency from monthly to annually. We also proposed to codify the requirement for the filing of annual circuit status reports and to require all international facilities-based carriers to file such reports. In addition, we proposed to direct the Chief, International Bureau to prepare a filing manual specifying a common format and proposed that annual reports be filed on computer diskettes. Seven carriers filed comments in response to the NPRM. Three filed reply comments. III. DISCUSSION A. Codification of International Circuit Status Report Filing Requirements. 4. We adopt our proposal to codify the requirement for filing annual circuit status reports. We will add therefore a new rule, Section 43.82, on this reporting requirement. Codification will inform all international carriers of the requirement. AT&T, IDB and Sprint specifically support our proposal to codify the requirement. 5. The information compiled by the Commission from the reports will be useful to current industry members, potential new entrants into the industry, and the Commission. This information will be aggregated and published by the Commission for the use and benefit of all industry members. It is critically important for U.S. carriers in the preparation of their international business plans. The availability of capacity, or the lack thereof, is fundamental to market entry and expansion decisions. The information is not available from any other reliable source. Publication of this information aids industry in determining competitive opportunities overseas and thereby supports our efforts to achieve a more competitive international telecommunications marketplace. In addition, since our NPRM was released, the Budget Act was passed. Section 6003(3) of that Act, inter alia, requires the Commission to collect annual regulatory fees on active equivalent 64 Kb/s international circuits. The annual circuit status reports will serve as a database for determining and monitoring the payment of these fees. Finally, the information contained in the reports also will allow us to continue to identify use of facilities as we streamline our facilities authorization procedures in our Notice of Proposed Rulemaking on streamlining the international Section 214 authorization process. B. Frequency of Filing of International Circuit Status Reports. 6. We adopt our proposal to reduce the frequency of filing circuit status reports from monthly to annually. As set forth in the NPRM, the manner in which we regulate international common carrier facilities and services has changed significantly since the early 1970's. The Commission no longer specifies cable- satellite circuit fill formulas. We also have instituted streamlined regulation of nondominant international common carriers. We find that satisfaction of our obligations under the Budget Act is provided by the annual circuit status reports. Therefore, we adopt our proposal to reduce the frequency of filing circuit status reports from monthly to annually. All commenters responding to the NPRM supported this proposal. We also adopt our proposal that the circuit status reports be filed on or before March 31 of each year and provide the circuit status information specified below as of December 31 of the immediately preceding year. C. Requirement that all International Facilities-Based Common Carriers File Annual Circuit Status Reports. 7. We also adopt our proposal to require all facilities- based international common carriers to file annual international circuit status reports. This reporting requirement will enable us to monitor the Budget Act's annual active 64 Kb/s equivalent circuit fee collection requirement. The fact that the annual circuit status reports will now serve as the database for the regulatory fees for active 64 Kb/s international circuits specified by Section 6003(a) of the Budget Act will require some changes in the types of circuits that now commonly are reported in the monthly circuit status reports. Circuits for Canada and Mexico are international circuits included in the regulatory fees and now will have to be included in the annual circuit status reports. In their comments, AT&T, MCI and Sprint support the filing of international circuit status reports by all international facilities-based common carriers for the reasons set forth in the NPRM. D. Exemption of Nondominant International Facilities-Based Common Carriers from Filing Section 63.15(b) Circuit Addition Reports. 8. GE Americom argues that the Commission should streamline further the regulation of nondominant international carriers by exempting such carriers from all reporting requirements. As an alternative, GE Americom asserts that the Commission should exempt international nondominant carriers from filing annual circuit status reports and require only the circuit addition reports under Section 63.15(b). In addition, GE Americom suggests that circuit addition reports should be filed only annually. As a third alternative, GE Americom requests that the Commission eliminate Section 63.15(b) circuit addition reports and have all international carriers file only annual circuit status reports. We deny GE Americom's first two requests and grant its third request in part. 9. There are numerous nondominant international facilities-based common carriers. In the aggregate, these carriers account for a substantial use of international facilities. Therefore, our ability to monitor payment of the Budget Act's fees on active 64 Kb/s equivalent circuits is significantly dependent on the circuit status reports filed by nondominant facilities-based international common carriers. Indeed, because there are many more nondominant international facilities-based common carriers than dominant carriers, the annual circuit status reports filed by the nondominant carriers will make up a substantial portion of the database for monitoring the payment of regulatory fees for active equivalent 64 Kb/s international circuits. Therefore, we require all international facilities-based common carriers to file annual circuit status reports, including such carriers that are classified as nondominant. It is our intention that the reporting requirements be the least intrusive and burdensome on industry as possible, consistent with allowing us to fulfill our statutory obligations. In furtherance of this objective, we are modifying the rule we are adopting to remove the requirement that circuit status information be filed on a transmission facility- by-transmission facility basis. We instead will require only that international facilities based carriers include the total number of activated and the total number of idle circuits by the categories of submarine cable, satellite and terrestrial facilities to geographic points for the services designated by the Chief, International Bureau. 10. AT&T, IDB, MCI and Sprint suggest that nondominant carriers required to file annual circuit status reports be exempted from filing the semi-annual circuit addition reports under Section 63.15(b). We agree. The annual status reports will contain the same information in the circuit addition reports. Since the annual circuit status reports will be filed on computer diskettes, deriving information on circuit additions from the circuit status reports will be relatively easy. Consequently, we are amending Section 63.15(b) to exempt nondominant international facilities-based common carriers from having to file semi-annual circuit addition reports. E. Reduction of Frequency of Filing Section 63.15(b) Circuit Addition Reports by Nondominant International Private Line Resale Carriers. 11. Section 63.15(b) also requires nondominant carriers reselling international private lines to file semi-annual circuit addition reports. Since we are not requiring international private line resellers to file annual status reports, we will continue to require these international private line resellers to file circuit addition reports. However, we will amend Section 63.15(b) to require that circuit addition reports be filed annually instead of semi-annually. The circuit addition reports must be filed not later than March 31 of each year and show the circuit additions for the preceding year. F. Preparation of Filing Manual. 12. We adopt our proposal to direct the Chief, International Bureau to prepare a filing manual specifying reporting requirements for the annual circuit status reports. A number of the carriers responding to the NPRM support the adoption of this proposal but suggest that the international carriers meet with the International Bureau to provide input. We agree and direct the International Bureau to hold such meetings. We further direct that, to the extent possible, every effort be made to collect the necessary information consistent with the ways the carriers maintain such information for their own purposes. 13. We also direct the Chief, International Bureau to specify a format for the annual international circuit status reports in the filing manual. Our use of the information provided by those reports can be made more efficient if a common format for the reports is specified. We also require that those reports be filed on a common type and format of computer diskettes. As a result of these requirements, the Bureau will be able to combine data from the various carriers' reports. G. Confidentiality of Annual Circuit Status Reports. 14. GTE and IDB urge that the information contained in the annual international circuit status reports be held confidential. In its comments, GTE asserts that the information in the international circuit status report should be treated as confidential since it would provide competitors access to highly competitive information. GTE states that other U.S. carriers and foreign competitors could use the information for their own business purposes. GTE asserts that in the increasingly competitive atmosphere of international telecommunications, it is important that specific route information, including the number of active and idle circuits, should not be available to competitors. Specifically, argues GTE, competitors could use this information to determine a carrier's routes, how traffic is routed, the capacity currently used to provide service and the readily available surplus. In its reply comments, IDB strongly supports GTE, asserting that information on the number of active and idle circuits, particularly when such information is provided on a country-by-country basis, is highly sensitive commercial information that under no circumstances should be available to competitors. 15. We conclude that in general the annual circuit status reports should not be held confidential. There are a number of reasons why those reports should be public. For example, the annual circuit status reports now also will serve as substitutes for the semi-annual circuit addition reports for the nondominant facilities-based international carriers. The circuit addition reports were instituted as an alternative to nondominant international carriers filing Section 214 applications for supplemental facilities. The Section 214 applications for the supplemental facilities were public and the Commission anticipated that the circuit addition reports would be public as well. Indeed most nondominant carriers filing circuit addition reports file them on a non-confidential basis. A few such carriers requested confidentiality. The fact the annual circuit status reports now will substitute for the circuit addition reports militates toward having those reports filed on a public basis. Having these reports available will enable the public to see the circuit additions made by the carriers just as the public was able to apprise itself of that information when nondominant carriers were required to file Section 214 applications for all of their supplemental facilities. The annual circuit status reports also will serve as the database which will be used to check payment of regulatory fees for active equivalent 64 Kb/s international circuits. We believe that this information should be public as well in order that the public may review the basis for the regulatory fees imposed on the carriers. 16. With respect to the concerns about the disclosure of routing information and information concerning the number of active and idle circuits, we note that the annual circuit status reports will contain that information for but a single day each year -- December 31. Moreover, that information need not be filed until three months after each December 31. Unlike the monthly circuit reports which were to be filed each month and within 20 days of the end of each month, we do not believe that the annual circuit reports will disclose a running account of a given carrier's operations. Moveover, traffic volumes are disclosed publicly on an annual basis for all international carriers when they file their Section 43.61 reports. International carriers required to file status reports are free to file properly supported requests for confidentiality under the Freedom of Information Act when they file their annual circuit status reports. We will not make a blanket finding that confidentiality is required on the record before us. IV. CONCLUSION 17. In this Order, we reduce the regulatory burden on traditional international facilities-based carriers. We codify the requirements for international circuit status reports and reduce the frequency of filing such reports from monthly to annually. By requiring all facilities-based international carriers to file annual circuit status reports, we have a database for monitoring the payment of regulatory fees for active international equivalent 64 Kb/s circuits. We also exempt nondominant facilities-based international carriers from filing the circuit addition reports required by Section 63.15(b). In addition, we reduce the frequency of filing circuit addition reports by international private line resellers from semi- annually to annually. The development by the International Bureau of a filing manual with a common format for the annual circuit status reports will significantly improve its ability to manipulate the data contained in the annual circuit status reports. We also provide for carrier input into the formulation of the filing manual. V. PROCEDURAL MATTERS; ORDERING CLAUSES 18. The analysis pursuant to the Regulatory Flexibility Act of 1980 is contained in Appendix B. 19. Accordingly, IT IS ORDERED that the rule changes as specified in Appendix A ARE ADOPTED. 20. IT IS FURTHER ORDERED that the rule changes made herein WILL BECOME EFFECTIVE 90 days after publication in the Federal Register. This action is taken pursuant to Sections 4, 214, 219, 303(r) and 403 of the Communications Act of 1934, as amended, 47 U.S.C. 154, 214, 219, 303(r) and 403 (1995). 21. IT IS FURTHER ORDERED that the Chief, International Bureau shall develop a filing manual for the submission of international circuit status reports. 22. IT IS FURTHER ORDERED that the Chief, International Bureau shall direct the International Bureau Staff to meet with the facilities-based international common carriers on the development of the filing manual. 23. IT IS FURTHER ORDERED that this Report and Order does not alter the requirement that MCI Communications Corporation file monthly circuit status reports for U.S.-U.K. circuits as required by paragraph 65 of our Declaratory Ruling and Order, MCI Communications Corporation, 9 FCC Rcd 3960 (1994). 24. IT IS FURTHER ORDERED that the Request to Submit Late- Filed Comments filed by GE Americom IS GRANTED. 25. IT IS FURTHER ORDERED that this proceeding IS HEREBY TERMINATED. FEDERAL COMMUNICATIONS COMMISSION William F. Caton Acting Secretary APPENDIX A FINAL RULES Part 43 of Title 47 of the Code of Federal Regulations is amended as follows: 1. The authority citation for Part 43 continues to read as follows: AUTHORITY: Secs. 4, 48 Stat. 1066, as amended; 47 U.S.C. 154, unless otherwise noted. Interpret or apply secs, 211, 219, 220, 48 Stat. 1073, 1077, as amended; 47 U.S.C. 211, 219, 220. New Section 43.82 is added to read as follows:  43.82 International Circuit Status Reports. (a) Each facilities-based common carrier engaged in providing international telecommunications service between the area comprising the continental United States, Alaska, Hawaii, and off-shore U.S. points and any country or point outside that area shall file a circuit status report with the Chief, International Bureau, not later than March 31 each year showing the status of its circuits used to provide international services as of December 31 of the preceding calendar year. (b) The information contained in the reports shall include the total number of activated and the total number of idle circuits by the categories of submarine cable, satellite and terrestrial facilities to geographic points outside the United States for the services designated by the Chief, International Bureau. (c) The information required under this section shall be furnished in conformance with instructions and reporting requirements prepared under the direction of the Chief, International Bureau, prepared and published as a manual. (d) Authority is hereby delegated to the Chief, International Bureau to prepare instructions and reporting requirements for the filing of the annual international circuit status reports. Part 63 of Title 47 of the Code of Federal Regulations is Amended as follows: 1. The authority citation for Part 63 continues to read as follows: Authority: Sections 1, 4(i), 4(j), 201-205, 218 and 403 of the Communications Act of 1934, as amended, 47 U.S.C. secs. 151, 154(i), 154(j) 201-205, 218 and 403, unless otherwise noted. Subsection 63.15(b) is amended to read as follows: 63.15 Special procedures for non-dominant international services. ... (b) Any non-dominant party certified to provide international resold private lines to a particular geographic market shall report its circuit additions on an annual basis. Circuit additions should indicate the specific services provided (e.g., IMTS or private line) and the country served. This report shall be filed on a consolidated basis not later than March 31 for the preceding calendar year. APPENDIX B FINAL REGULATORY FLEXIBILITY ANALYSIS Pursuant to Section 603 of Title 5, United States Code, 5 U.S.C. 603, an Initial Regulatory Flexibility Analysis was incorporated in the Notice of Proposed Rule Making in CC Docket No. 93-157. Written comments on the proposals in the Notice, including the Regulatory Flexibility Analysis, were requested. A. NEED AND PURPOSE OF RULES. This rule making proceeding was initiated in order to reduce the burden on those international facilities-based common carriers filing monthly circuit status reports by reducing the frequency of filing such reports from monthly to annually. The rule making also sought to make the information derived from the annual circuit reports more complete and, therefore, more useful to the Commission by requiring all international facilities-based common carriers to file them. In addition, the rule making sought to make handling of the information provided by the annual circuit reports easier by requiring the development of a filing manual setting forth the requirements for such reports, establishing a common format for the reports and requiring the filing of the reports on computer diskettes. B. ISSUES RAISED BY THE PUBLIC IN RESPONSE TO THE INITIAL ANALYSIS. A number of parties proposed that nondominant international facilities-based common carriers which will be required to file annual circuit status reports be exempted from filing semi-annual circuit addition reports required by Section 63.15(b) of the Commission's Rules. We adopt this proposal. One commenter suggested that nondominant international carriers be exempted from all reporting requirements. We did not adopt that proposal because to do so would prevent the Commission from developing a database of active 64 kb/s circuits need for monitoring regulatory fees. A number of commenters also proposed that the carriers be permitted input to the formulation of the filing manual and format for the annual circuit status reports. We adopt that proposal. C. SIGNIFICANT ALTERNATIVES CONSIDERED. We considered and adopted the parties' proposal that nondominant international facilities-based carriers which are required to file annual circuit status reports not be required to file semi-annual circuit addition reports. We also reduced the frequency of filing circuit addition reports from semi-annually to annually for those international carriers which must still file such reports. We also considered and adopted the parties' proposal that facilities-based international carriers be given an opportunity to provide input to the formulation of the filing manual and format for the annual circuit status reports.