I. Introduction
On October 31, 1996, the Federal Communications Commission ("FCC" or "Commission") released a Detariffing Order directing all nondominant interexchange carriers ("IXCs") to "cancel their tariffs for interstate, domestic, interexchange services [i.e., domestic long distance services] on file with the Commission within nine months of the effective date of the order and not to file any such tariffs thereafter."(fn1) The Order was published in the Federal Register on November 22, 1996, and became effective on December 22, 1996.
Thereafter, various carriers contested the Detariffing Order(fn2) and sought review of the order in the U.S. Court of Appeals for the District of Columbia Circuit. On February 13, 1997, the court stayed the Detariffing Order pending judicial review. In the meantime, on reconsideration, the Commission modified the Detariffing Order to allow: (1) permissive detariffing of dial around 1+ services that use a carrier access code, and (2) tariffing of new customer services for a limited period of 45 days.(fn3) On further reconsideration, the Commission adopted public disclosure requirements regarding the rates, terms, and conditions governing detariffed services.(fn4)
On April 28, 2000, the U.S. Court of Appeals upheld the Commission’s orders requiring detariffing of interstate, domestic, interexchange services.(fn5) On May 1, 2000, the court lifted the stay, and the FCC’s detariffing rules are now in effect.(fn6) Below is a summary of the Commission’s rules regarding the detariffing transition period, services that are exempt from mandatory detariffing, and the public disclosure requirements that replace the filing of tariffs.
II. Detariffing Transition
The detariffing transition period began on May 1, 2000 and ends January 31, 2001. Nondominant IXCs may file new and revised tariffs for mass market interstate, domestic, interexchange services during the transition period. However, all nondominant IXCs must cancel their tariffs for interstate, domestic, interexchange services on file with the FCC by January 31, 2001.
Carriers are allowed to cancel their tariffs for interstate, domestic, interexchange service at any time during the nine-month period. Tariffs may be cancelled by replacement, supplement, or expiration. A supplement is identical to a tariff page but should be designated as a supplement instead of a numbered page. The contents of the supplement should state, "Pursuant to the Detariffing Order, CC Docket 96-61, 11 FCC Rcd 20730 (1996), this tariff is cancelled in its entirety effective (state the date of cancellation)."(fn7) Tariff cancellations must be submitted on diskette or CD-ROM, in Word Perfect 5.1, Microsoft Word 6.0 or Microsoft Word 97 software. Pursuant to Section 1.1105 of the Commission’s rules, tariff filings must be accompanied by a filing fee, which is currently six hundred thirty dollars ($630.00) per tariff filing. In order to minimize costs, carriers may cancel several tariffs or revise several tariffs under one cover letter with the payment of one filing fee, as long as each tariff has the same issuing carrier name and the issued date is identical for each tariff.
Although the Commission will accept new tariffs and revisions to carriers’ tariffs for mass market interstate, domestic, interexchange services throughout the transition period, the Commission will not accept new tariffs, or revisions to carriers’ existing tariffs, for long-term service arrangements (such as contract tariffs, AT&T’s Tariff 12 options, MCI’s special customer arrangements, and Sprint’s custom network service arrangements) during the transition period. The FCC recognizes that many such long-term service arrangements incorporate by reference mass market tariffs. By precluding carriers during the transition period from filing tariffs or revisions to tariffs for long-term service arrangements, the Commission does not intend to infringe upon a carrier’s ability to file tariffs and tariff revisions for mass market services.
Carriers may cancel the portions of mixed services tariffs (e.g., tariffs that include services subject to different degrees of regulation, such as international services)(fn8) that are subject to detariffing by either: (1) canceling the entire tariff and refiling a new tariff for only those services that remain subject to tariff filing requirements, or (2) issuing revised tariff pages that cancel the detariffed material.
Finally, the FCC has decided that it will allow carriers and customers freely to determine the most efficient methods for provisioning interexchange services without tariffs. Therefore, nondominant interexchange carriers are permitted to utilize various methods to establish legal relationships with customers in the absence of tariffs, including, for example, the use of short standard agreements.
III. Continued Requirements For Carriers And Remaining Tariffed Services
A. Geographic Rate Averaging and Rate Integration
Although tariffs will no longer be permitted under the FCC’s detariffing policy, the Commission will now require that: "(a) A nondominant provider of interexchange telecommunications services, which provides detariffed interstate, domestic, interexchange services, shall file with the Commission, on an annual basis, a certification that it is providing such services in compliance with its geographic rate averaging and rate integration obligations pursuant to section 254(g) of the Communications Act of 1934, as amended"; and "(b) [t]he certification filed pursuant to paragraph (a) of this section shall be signed by an officer of the company, under oath."(fn9)
Carriers with tariffs currently on file should file their certification letter with the Secretary of the FCC. Initially, the certification should be filed at the same time as, but in a separate package from, the filing that either cancels a carrier’s domestic, interstate interexchange service tariff[s] or revises its existing tariff[s] to remove references to interstate, domestic interexchange services. The certification filing is an annual requirement and there is no filing fee.
In addition to the requirement that a carrier file a rate averaging certification, carriers are expected to maintain supporting documentation on rates, terms and conditions of their interstate, domestic, interexchange services and must make such information available to the FCC or state regulatory commissions upon request.
B. Permissive Detariffing Allowed For Dial Around 1+ Calling
The FCC will continue to allow detariffing on a permissive rather than a mandatory basis for interstate, domestic, interexchange direct dial services by which an end user obtains access by dialing a carrier’s access code (dial around 1+ services). However, complete detariffing will be required for all other casual calling services (e.g., use of a carrier’s calling card, collect calling, calls billed to third-party numbers). A carrier may continue to file tariffs for dial around 1 + services because IXCs offering dial around 1+ services are unable to establish a contractual relationship with the customer, as they can with other casual calling services. Therefore, a carrier’s tariff will resolve any confusion regarding the IXC’s rates for the dial around 1+ service. However, the FCC has stated that permissive detariffing for dial around 1+ services is an interim measure until the FCC reexamines the technology and decides whether mandatory detariffing for dial around 1+ is technically feasible.
C. Initial Period of Service to Presubscribed Customers
The FCC will continue to allow permissive detariffing for the initial 45 days of nondominant interexchange carriers’ provision of interstate, domestic, interexchange mass market services to new residential and business customers, or until a written contract is consummated, whichever is earlier.(fn10) The Commission’s decision permitting carriers to file tariffs that cover services during this initial period is limited to situations in which new customers contact a LEC, rather than an IXC, to initiate a primary interexchange carrier change or to select an interexchange carrier.
D. 0 + Services
Operator Service Providers ("OSPs") must continue to file informational tariffs pursuant to Section 226 of the Communications Act. OSPs include all carriers that routinely accept interstate collect calls, credit card calls, and/or third-party billing calls from aggregator locations.(fn11) An aggregator is a payphone provider, a provider of telephones to hotels and other public locations, and the like.(fn12) An 0+ call occurs when the caller enters "0" plus an interexchange number, without first dialing a carrier access code.
E. Mixed International and Domestic Services
Although, tariffs governing the provisioning of international services will continue to be required by the FCC, upon the expiration of the transition period, carriers are expected to have bifurcated the provision of bundled domestic and international services. However, during the transition period, the Commission is seeking comment on whether permissive detariffing should be permitted during all or part of the nine-month transition period for bundled domestic and international service offerings.
IV. Public Disclosure
To replace tariffs, the FCC has issued requirements for the public disclosure of rates and terms. The new public disclosure rules require that a nondominant IXC must make available to any member of the public, in at least one location, during regular business hours, information concerning its current rates, terms and conditions for all interstate, domestic, interexchange services. This information must be made available in an easy to understand format and in a timely manner. Following an inquiry or complaint from the public concerning rates, terms and conditions for such services, a carrier shall specify that such information is available and the manner in which the public may acquire the information.(fn13)
Note that nondominant IXCs that maintain an Internet website must make the rate and service information described above available on-line at their Internet websites. The disclosures must be made in a timely and easily accessible manner, and must be updated regularly.(fn14)
Additionally, a nondominant IXC must maintain price and service information regarding all of the carrier’s interstate, domestic, interexchange service offerings for submission to the Commission and to state regulatory commissions upon request. The price and service information shall include documentation supporting the rates, terms, and conditions of the carrier’s interstate, domestic, interexchange offerings. The information must be maintained in a manner that allows the carrier to produce such records within ten business days.
V. Conclusion
At present, the FCC is seeking comment on how quickly the IXCs that currently have websites should be required to come into full compliance with the web posting requirement and whether tariffs containing bundled international and domestic services may be continued to be filed during the transition period. The Commission has also requested comment on whether any other modifications should be made to the transition plan.
Parties wishing to file comments must so on or before May 31, 2000. Reply comments are due on or before June 9, 2000. Parties that wish to meet to discuss transition procedures and issues are requested to schedule meetings with the Competitive Pricing Division prior to the close of the comment period (June 9, 2000).
Footnotes