NEWSReport No. DC 96-82 ACTION IN DOCKET CASE August 8, 1996 COMMISSION IMPLEMENTS DIALING PARITY, NONDISCRIMINATORY ACCESS, NETWORK DISCLOSURE, AND NUMBERING ADMINISTRATION PROVISIONS OF THE TELECOMMUNICATIONS ACT OF 1996 (CC Docket Nos. 96-98, 95-185, 92-237, IAD File No. 94-102, NSD File No. 96-8) The Commission today took action to implement the dialing parity, nondiscriminatory access, network disclosure and numbering administration requirements of the Telecommunications Act of 1996 (the 1996 Act). In an Order adopted today, the Commission lowers operational barriers to competition, consistent with the Act's pro- competitive, de-regulatory, national telecommunications policy framework. Together with the Interconnection Order which the Commission adopted on August 1, this Order fulfills the Commission's responsibility to issue rules implementing Section 251 of the 1996 Act within six months after enactment. In the Order adopted today, the Commission states that its decision would, consistent with the 1996 Act, benefit consumers by making components of existing local telephone service -- dialing, telephone numbers, operator services, directory assistance, and directory listings -- available to all competitors on an equal basis. The following summarizes the key issues addressed in the Report and Order. Section 251(b)(3): Dialing Parity The 1996 Act requires local exchange carriers (LECs) to provide dialing parity to providers of telephone exchange and toll services. The Commission's decision adopted today will promote competition in the local and long distance telephone markets by allowing customers to choose different carriers for different services without having to dial extra digits (dialing parity). To achieve this objective, the Commission establishes minimum federal standards that build upon the states' efforts to promote competition in local and intraLATA toll services. The Commission concludes that the 1996 Act requires LECs to provide dialing parity with respect to all telecommunications services that require dialing to route a call and that the dialing parity obligation encompasses international as well as interstate, intrastate, local, and toll calls. The Commission does not require commercial mobile radio service (CMRS) providers to provide dialing parity. (over) - 2 - The Commission concludes that the 1996 Act requires, at minimum, that customers be entitled to select different carriers for their intraLATA and interLATA toll calls. Consequently, the Commission requires all LECs to implement toll dialing parity using the "full 2-primary interexchange carrier," (Full 2-PIC) presubscription method no later than February 8, 1999. Section 251(b)(3): Nondiscriminatory Access The 1996 Act requires LECs to permit competing providers of telephone exchange service and toll service to have "nondiscriminatory access to telephone numbers, operator services, directory assistance and directory listings." In the Order, the Commission concludes that "nondiscriminatory access" encompasses both (1) nondiscrimination between and among carriers in rates, terms, and conditions of access; and (2) the ability of competing providers to obtain access that is at least equal in quality to that of the providing LEC. The Commission further concludes that the term "nondiscriminatory access to telephone numbers" requires LECs to permit competing providers to have access to telephone numbers that is identical to the access that a LEC provides itself. The Commission also concludes that "operator services" means any automatic or live assistance to a consumer to arrange for billing or completion of a telephone call, including services such as busy line verification, emergency assistance, and operator assisted directory assistance. The Commission states that any customer of a LEC that provides operator services should be able to obtain these services by dialing "0" or "0-plus" the desired telephone number. If a dispute arises regarding a competitor's access to operator services, the burden will be upon the providing LEC to demonstrate that it has provided nondiscriminatory access and that any disparity is not caused by factors within its control. The Commission finds that LECs providing directory assistance must permit access to this service to competing providers that is at least equal in quality to the access that the LEC provides to itself, and must share directory listings with competing service providers, in "readily accessible" tape or electronic formats, upon request, and in a timely manner. The Commission concludes that the 1996 Act's prohibition on unreasonable dialing delay applies to both the provision of local and toll dialing parity and nondiscriminatory access to operator services and directory assistance. The dialing delay experienced by a connecting LEC customer should not be greater than the delay a customer of the LEC providing nondiscriminatory access would experience for the same call of the same type. Section 251(c)(5): Network Disclosure The 1996 Act imposes upon incumbent LECs the duty to provide reasonable public notice of changes in the information needed to transmit and route services using a LEC's facilities or networks. Incumbent LECs must provide reasonable public notice of any other changes that would affect the interoperability of those facilities or networks. To implement this provision of the 1996 Act, the Commission specifies how these public notices must be made. The Commission concludes that "information necessary for the transmission and - 3 - routing" means any information in the incumbent LEC's possession that affects an interconnector's performance or ability to provide services. The Order also concludes that incumbent LECs' network disclosure obligations should extend to network changes that affect either telecommunications or information service providers, and it defines "interoperability" as the ability of two or more facilities, or networks, to be connected, to exchange information, and to use the information that has been exchanged. Section 251(e): Numbering Administration Section 251(e)(1) of the 1996 Act states that the Commission has "exclusive jurisdiction over those portions of the North American Numbering Plan that pertain to the United States." The Act also requires the Commission to "create or designate one or more impartial entities to administer telecommunications numbering and to make such numbers available on an equitable basis." The Commission concludes that it has taken appropriate action to designate an impartial number administrator. It further concludes that the Commission should retain its authority to set policy with respect to all facets of numbering administration, but authorizes the states to resolve matters related to implementation of new area codes, subject to the guidelines set forth in the Order. The Commission authorizes Bellcore and the LECs to continue to perform number administration functions until those functions are transferred to a new North American Numbering Plan Administrator. The Commission's decision prohibits service-specific or technology-specific area code overlay plans. States may employ all-service overlays only if they also mandate 10-digit dialing for all local calls within the area affected by the area code change and ensure the availability of at least one NXX in the existing area code to every telecommunications carrier authorized to provide telephone exchange service, exchange access, and paging services in that area, including CMRS providers. The Commission requires that: (1) only "telecommunications carriers" as defined in the 1996 Act be ordered to contribute to the recovery of the costs of establishing numbering administration; and (2) such contributions shall be based on each contributor's gross revenues from its provision of telecommunications services reduced by all payments for telecommunications services and facilities that have been paid to other telecommunications carriers. The Commission denies the petition for expedited declaratory ruling filed by the Texas Public Utility Commission based on the Commission's finding that the Texas Commission's wireless-only area code overlay plan violates guidelines set forth in the Commission's Ameritech Order (IAD File No. 94-102). The Order also addresses petitions for clarification or reconsideration of that decision, as well as the decision calling for the creation of a neutral North American Numbering Plan Administrator (CC Docket No. 92-237). (over) - 4 - Action by the Commission August 8, 1996, by Second Report and Order and Memorandum Opinion and Order (FCC 96-333) Chairman Hundt, Commissioners Quello, Ness, and Chong. -FCC- News Media contact: Mindy J. Ginsburg at (202) 418-1500. Common Carrier Bureau contact: Kent Nilsson or Lisa Boehley at (202) 418-2320