FCC Agenda Notebook...
FCC opened proceeding Thurs. to determine whether fees charged by local phone companies for changing consumers’ presubscribed long distance carrier were priced properly. Known as presubscribed interexchange carrier (PIC) change charges, those fees are subject to $5 “safe harbor” cap within which rates are considered reasonable. FCC said most LECs charged at that level and it wanted to determine whether those fees reflected current costs of that function. Acting at agenda meeting, FCC said it was granting petition filed last year by CompTel that sought rulemaking to consider changing policy. Agency said it wanted comment on: (1) Whether to base PIC change charge on “examination of carrier cost” or whether FCC could “rely on market forces to ensure reasonable rates.” (2) Whether it should take into consideration “noncost factors” in determining reasonable charge. (3) Whether to establish “national safe harbor.” (4) “Whether carriers should submit individualized cost support with their tariffs, or whether the Commission should review rates solely through enforcement processes.” CompTel said FCC “is doing the right thing for consumers and competition” by opening notice of proposed rulemaking on issue. “It’s time these outdated policies and fee structures are revised to more accurately reflect actual costs,” CompTel said. Assn. said it was concerned that, as Bells entered long distance business, they be deterred from favoring their own long distance services by raising costs to consumers of switching to competitors.
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FCC Thurs. streamlined merger review process for less controversial transactions such as those involving non- facilities-based carriers, those in which acquiring party isn’t telecom provider or for certain small ILEC mergers. Order automatically approves such transactions 30 days after public notice is issued unless applicants are otherwise notified by FCC. Other changes: (1) Carriers with combined domestic and international have option of filing one application for approval. (2) Rules harmonize treatment of asset acquisitions and corporate acquisitions. FCC previously treated 2 differently, looking at acquisition of carrier’s assets as “discontinuance” of service rather than acquisition. They now will be treated as transfers of control and subject to new rules. (3) Sections of FCC rules that are obsolete will be deleted, such as those referring to telegraph carriers. FCC said it reviewed 25 merger applications in last 15 months and about 85% of them would have qualified for expedited review process under these rules. Comr. Copps dissented in part, concurred in part. He said new process gave Common Carrier Bureau too much authority. He said he supported setting specific categories for streamlined treatment and letting Commission determine on case-by-case basis whether other applications also should be streamlined. However, he said, order delegated too much authority at bureau level: “The majority has decided to vest the bureau with the delegated authority to determine if any transaction -- whether or not it falls within the presumptive categories -- merits streamlined treatment or requires further investigation… Mergers may be some of the most important and consequential cases that the Commission will be handling in this time of great economic change and uncertainty, and I believe that for these transactions, the buck must stop in the Commissioners’ offices.”
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FCC unanimously approved notice of proposed rulemaking at Thurs. agenda meeting on mitigation of orbital debris. NPRM proposes to adopt requirement that all FCC-licensed satellite systems submit information on plans to minimize orbital debris -- artificial objects orbiting earth that aren’t “functional spacecraft.” Until now, FCC said it had assessed orbital debris issue on “case-by-case basis,” requiring some satellite systems to provide information and evaluating disposal measures of some systems. FCC said NPRM attempted to address orbital debris “in a systematic way.” Proposal covers U.S. govt. orbital debris guidelines that don’t apply to satellite authorized by FCC. Agency seeks comment on applicability of those guidelines to nongovt. systems. “Studies show that continued increase in orbital debris may raise concerns regarding the reliability and cost of space activities, including satellite communications,” FCC said. Commission proposes to adopt requirement that all satellite systems submit information on debris mitigation plans before authorization, said International Bureau special adviser Karl Kensinger. Proposal seeks comment on whether there are specific debris mitigation practices that should be incorporated into FCC’s rules or whether Commission should address debris mitigation practices on case-by-case basis, Kensinger said. Studies have indicated that measures taken now can “substantially” reduce growth in orbital debris, he said. “The item before you represents the next step in a progression of FCC actions,” he told FCC. Commission has adopted or proposed basic disclosure requirements on debris mitigation plans in 2 GHz mobile satellite service and nongeostationary Ku- and Ka-band, he said. “Today’s item proposes that this basic disclosure requirement should be extended to all satellite systems authorized by the FCC,” Kensinger said. Among other issues on which agency solicits comment are what policies it should apply when reviewing information submitted by applicants on debris mitigation practices. Standard U.S. govt. practices specify objectives such as control of debris during normal operations and minimizing debris, he said.