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FCC sets new access rates - ISP's escape inter-state tariff - Congestion argument denied




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>    Federal Communications Commission
>    navigation bar with links to FCC Homepage, Search, Commissioners,
>    Bureaus/Offices, and Finding Information
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>    HTML Format
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>    
>    FCC 97-158
>    
>    First Report & Order In the Matter of
>    Access Charge Reform
>    Price Cap Performance Review for Local Exchange Carriers
>    Transport Rate Structure and Pricing
>    Usage of the Public Switched Network by Information Service and
>    Internet Access Providers 
>      _________________________________________________________________
>    
>    Text Version | WordPerfect Version | Acrobat Version | News Release |
>    Errata
>    
>    
>    
>    
>    Table of Contents
>    links to HTML files
>    
>    These files do not contain the changes specified in the 6/4/97 Errata!
>    
>    
>    TITLE PAGE
>           
>    I. Introduction 1
>           A. Background 17
>           
>         
>                 1. The Existing Rate System 17
>                 2. Implicit Subsidies in the Existing System 28
>                 3. The Telecommunications Act of 1996 32
>                 
>    
>           B. Access Charge Reform 35
>           
>         
>                 1. Rationalizing the Rate Structure 36
>                 2. Baseline Rate Level Reductions 42
>                 
>    
>           
>    II. Summary of Rate Structure Changes and Transitions 53
>           A. Common Line Rate Structure Changes 54
>           B. Other Rate Structure Changes 61
>           
>    III. Rate Structure Modifications 67
>           A. Common Line 67
>           
>         
>                 1. Overview 67
>                 2. Subscriber Line Charge 72
>                 3. Carrier Common Line Charge 88
>                 4. Common Line PCI Formula 106
>                 5. Assessment of SLCs and PICCs on Derived Channels 111
>                 
>    
>           B. Local Switching 123
>           
>         
>                 1. Non-Traffic Sensitive Charges 123
>                 2. Traffic Sensitive Charges 136
>                 
>    
>           C. Transport 150
>           
>         
>                 1. Entrance Facilities and Direct-Trunked Transport 152
>                 2. Tandem-Switched Transport 158
>                 
>    
>           D. Transport Interconnection Charge (TIC) 210
>           
>         
>                 1. Background 210
>                 2. Discussion 212
>                 
>    
>           E. SS7 Signalling 244
>           
>         
>                 1. Background 244
>                 2. Discussion 252
>                 
>    
>           F. Impact of New Technologies 256
>           
>    IV. Baseline Rate Levels 258
>           A. Primary Reliance on a Market-Based Approach With A
>           Prescriptive Backdrop and the Adoption of Several Initial
>           Prescriptive Measures 258
>           
>         
>                 1. Background 258
>                 2. Discussion 262
>                 
>    
>           B. Prescriptive Approaches 285
>           
>         
>                 1. Prescription of a New X-Factor 285
>                 2. Rejection of Certain Prescriptive Approaches 287
>                 
>    
>           C. Equal Access Costs 299
>           
>         
>                 1. Background 299
>                 2. Discussion 302
>                 
>    
>           D. Correction of Improper Cost Allocations 315
>           
>         
>                 1. Marketing Expenses 315
>                 2. General Support Facilities 326
>                 
>    
>           
>    V. Access Reform For Incumbent Rate-of-Return Local Exchange Carriers
>           329
>           A. Background 329
>           B. Discussion 330
>           
>    VI. Other Issues 336
>           A. Applicability of Part 69 to Unbundled Elements 336
>           
>         
>                 1. Background 336
>                 2. Discussion 337
>                 
>    
>           B. Treatment of Interstate Information Services 341
>           
>         
>                 1. Background 341
>                 2. Discussion 344
>                 
>    
>           C. Terminating Access 349
>           
>         
>                 1. Price Cap Incumbent LECs 350
>                 2. Non-Incumbent LECs 358
>                 3. "Open End" Services 365
>                 
>    
>           D. Universal Service-Related Part 69 Changes 367
>           
>         
>                 1. Background 368
>                 2. Discussion 372
>                 
>    
>           E. Part 69 Allocation Rules 388
>           
>         
>                 1. Background 388
>                 2. Discussion 389
>                 
>    
>           F. Other Proposed Part 69 Changes 390
>           
>         
>                 1. Background 390
>                 2. Discussion 391
>                 
>    
>           
>    VII. Further Notice of Proposed Rulemaking 397
>           A. PICCs for Special Access Lines 397
>           
>         
>                 1. Background 398
>                 2. Proposal 403
>                 
>    
>           B. General Support Facilities Costs 407
>           
>         
>                 1. Background 408
>                 2. Proposal 412
>                 
>    
>           
>    VIII. Final Regulatory Flexibility Analysis 419
>           
>    IX. Procedural Issues 441
>           
>    X. Ordering Clauses 459
>           
>    Appendix A List of Commenters
>           
>    Appendix B Comment Summary
>           
>    Appendix C Final Rules
>           
>    STATEMENTS
>           Commissioner Quello
>           Commissioner Ness
>           Commissioner Chong
>           
>           
>           
>           
>           View/Download single-file HTML version of Entire Report
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>           
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>           
>      Pagination of the documents contained in these files may not match
>      that of the Official Paper Version when viewed or printed using your
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>           navigation bar with links to FCC Homepage, Search,
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>           last updated 6/9/97
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