News media information 202 / 418-0500 Fax-On-Demand 202 / 418-2830 Internet: http://www.fcc.gov ftp.fcc.govPUBLIC NOTICE Federal Communications Commission 1919 M St., N.W. Washington, D.C. 20554 Released: July 9, 1998 DA 98-1369 CLARIFICATION OF SECTION 43.61 INTERNATIONAL TRAFFIC DATA REPORTING REQUIREMENTS All common carriers that provided international telecommunications services in 1997 must file a report of their international traffic data for calendar year 1997 by July 31, 1998. The detailed filing requirements are contained in the "Manual for Filing Section 43.61 Data" (Manual). This Public Notice provides first a brief overview of the Section 43.61 annual filing requirement. Second, it establishes additional billing codes that "facilities-based" and "facilities-resale" (described below) carriers should use to report U.S. and foreign billed traffic that was settled under an "alternative settlement arrangement" for which the carrier received Commission approval under Section 64.1002 of the rules, 47 C.F.R.  64.1002. It also makes a conforming change to the billing code for "pure resale" services. Third, this notice provides guidance to carriers with respect to reporting: (1) switched traffic routed over international private lines; (2) "country direct" and "country beyond" services; and (3) "reorigination" services (foreign- billed services which a U.S.-authorized carrier "reoriginated" through the United States). Attached to this Public Notice is a revised table of billing codes for facilities-based and facilities-resale services. This table sets forth the new billing codes for facilities-based and facilities-resale services in a form that is intended to clarify the reporting of data for these services. Carriers that anticipate problems in filing their 1997 data in accordance with the guidelines and billing codes contained in this notice should obtain a waiver prior to July 31. Overview All common carriers that billed for international service in 1997, including pre-paid calling card and international call-back service providers, must file Section 43.61 international traffic data by July 31, 1998. Some carriers do not resell international services, but do include on their bills to customers international service charges clearly identified as the charges of other carriers. Such carriers are not required to file Section 43.61 international traffic data. Section 43.61 filing requirements depend on both the type of service provided and how carriers provide the service. The simplest filing requirements are for "pure resale" services. Carriers provide "pure resale" services by reselling the international switched services of other U.S.-authorized carriers. The Manual contains simplified filing requirements for such "pure resale" services. For example, carriers report their pure resale services on a world total (rather than a country specific) basis, and they may file their data on paper only (rather than also filing on diskette). Carriers that provided international services over international circuits that they own or lease must provide significantly more information for these services than they provide for "pure resale" services. Carriers file annual data on a country-by-country basis for their facilities-based and facilities-resale services and must include information on international settlement payments and receipts. The Manual defines "facilities-based" service as a service provided using channels of communication which the carrier owns; or in which the carrier has an ownership interest, such as an indefeasible right of use (IRU); or which the carrier leases from an entity that is not required to report those circuits in its own Section 43.61 reports. The Manual defines "facilities-resale" service as a service provided over non-switched international circuits leased from other reporting international carriers. In other contexts, the Commission refers to this method of providing international service as "private line resale." The routing of switched traffic over private lines between the United States and a foreign country has also been referred to as "International Simple Resale (ISR)." The rules governing the provision of ISR are set forth in Section 63.21(a), 47 C.F.R.  63.21(a), as amended in Rules and Policies on Foreign Participation in the U.S. Telecommunications Market, Market Entry and Regulation of Foreign-Affiliated Entities, IB Docket Nos. 97-142, 95-22, Report and Order and Order on Reconsideration, 12 FCC Rcd 23891 (1997), recon. pending. Reporting of Traffic Settled Under an Alternative Settlement Arrangement The Commission requires that U.S.-authorized carriers include in their annual Section 43.61 traffic reports their U.S. and foreign billed traffic that was settled under an "alternative" or "flexible" settlement arrangement for which the carrier received Commission approval under Section 64.1002 of the rules, 47 C.F.R.  64.1002. See Regulation of International Accounting Rates, CC Docket No. 90-337, Phase II, Fourth Report and Order, 11 FCC Rcd 20063 (1996), recon. pending, at  61. The attached table of billing codes includes a column headed "Alternative Settlement Arrangements" that sets forth new billing codes, 21 and 22 (public) and 24, 25, and 26 (proprietary), for use by carriers in reporting this traffic. Billing Code for Reporting of Pure Resale As explained above, the Manual permits pure resale carriers to file their data on paper only, rather than also filing on diskette. The Manual specifies billing code 21, however, for those carriers that choose to report their pure resale traffic on diskette. Pure resale carriers filing their 1997 data on diskette should use billing code 31, rather than billing code 21. The attached table of billing codes for 1997 specifies billing code 21 for the reporting of traffic that is settled under an alternative settlement arrangement. Reporting of Switched Traffic Routed Over Private Lines Carriers that provided international switched or private line services over resold private lines report such traffic using the billing codes specified in the Manual for "facilities-resale" service (i.e., billing codes 11 and 12 (public) and 14 (proprietary)). Additionally, the Commission has clarified that carriers that provide international switched services over their facilities-based private lines must report such traffic using the billing codes specified in the Manual for facilities-resale service. See International Settlement Rates, IB Docket No. 96-261, Report and Order, 12 FCC Rcd 19806 (1997), recon. pending, appeal filed, Cable & Wireless et al. v. FCC, No. 97-1612 (D.C. Cir. filed Sept. 26, 1997), at  252 (clarifying that carriers routing non-settled switched traffic over their private line facilities should report that traffic as switched facilities-resale service). The attached table of billing codes for facilities-based and facilities- resale services includes billing codes 11 and 12 (public) and 14 (proprietary) under a column that is headed "International Simple Resale and Hubbed Traffic." This heading is intended to highlight that these billing codes should be used by carriers to report switched traffic that they routed over facilities-based or resold private lines on an unsettled basis between the United States and the country at the foreign end of the private line or between the United States and a point beyond that country via "switched hubbing." See 47 C.F.R.  63.17 (switched hubbing rule). Like carriers using traditional settlement arrangements, carriers routing switched traffic over private lines are required to report their U.S. and foreign billed traffic by country of termination or origination. See Market Entry and Regulation of Foreign-Affiliated Entities, IB Docket No. 95-22, Report and Order, 11 FCC Rcd 3873 (1995) (subsequent history omitted) at  170. Country Direct and Country Beyond Services Some international calls are initiated in foreign points by customers using "country direct" and "country beyond" services of a U.S. carrier. These calls may terminate in the United States or in other foreign points. Where such calls terminate in the United States (i.e., a "country direct" service), the reporting carrier should report the message counts and minutes, the billed revenue, and the settlement payments for the country in which the calls originate. Where these calls terminate in other international points (i.e., a "country beyond" service), the carrier should report separately the originating and terminating legs of the calls. Thus, approximately two minutes will be reported for each conversation minute for "country beyond" service that both originates and terminates in foreign points. Carriers should report the billed revenue for country beyond service for the country in which the calls originate. Settlements for these calls, however, should be reported separately for each leg of these calls. Where traffic is exchanged on the originating and terminating legs using different settlement or facilities arrangements, the traffic on each leg should be reported using the appropriate billing code. Reorigination Services U.S.-authorized carriers that "reoriginate" traffic for foreign carriers may request a waiver of the Manual requirement to report reorigination traffic using the billing codes set forth in the attached table of billing codes (rather than using billing code 3 for transit traffic). Pursuant to this waiver, the carrier would include the terminating leg of its reorigination traffic in billing codes 1, 11, and 21 (public). The U.S. carrier typically will owe and report settlements only on the terminating leg of reorigination traffic. Total receipts from the foreign carrier for these calls would be reported for the terminating leg of the call. In the proprietary version of the data, the carrier would separate out its reorigination traffic from other traffic reported under billing codes 1, 11, and 21. Both the originating and terminating legs of reoriginated calls would be reported in the proprietary version of the data. For the originating legs, the carrier would report messages and minutes only. These files would be reported using separate proprietary billing codes for the terminating leg (billing codes 5, 15, and 25) and originating leg (6, 16, and 26) of the calls. The Manual for Filing Section 43.61 Data is available in the reference room maintained by the Common Carrier Bureau at 2000 M Street, N.W., Room 575. Copies of the Manual can be purchased by calling International Transcription Service, Inc. (ITS) at (202) 857-3800. The Manual can be downloaded [file name MANUAL95.ZIP] from the FCC-State Link internet site (http://www.fcc.gov/ccb/stats) on the World Wide Web. By the Chief, International Bureau - FCC - For additional information, contact Linda Blake or Jim Lande of the Common Carrier Bureau's Industry Analysis Division, (202) 418-0940, or Susan O'Connell of the International Bureau's Telecommunications Division, (202) 418-1470.