76218 Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Rules and Regulations

■ 4. Section 155.410 is amended by (d) Premium payment. Regarding intermediate providers. Covered revising paragraph (c)(1) to read as premium payment, a QHP issuer— providers must file quarterly reports and follows: (1) Must, follow the premium retain the call detail records for at least payment process established by the six calendar months. The Report and § 155.410 Initial and annual open Exchange in accordance with § 155.240. Order also allows qualifying providers enrollment periods. (2) Must, for QHPs offered through a to certify that they meet the conditions * * * * * Federally-facilitated Exchange, establish for a Safe Harbor that would reduce (c) * * * the date by which a qualified individual reporting and retention obligations. In (1) Regular effective dates. For a QHP that has selected a QHP within the addition, the Commission has delegated selection received by the Exchange from enrollment period dates in § 155.410(b) to the Wireline Competition Bureau, in a qualified individual— of this subchapter must make a consultation with the Enforcement (i) On or before December 23, 2013, premium payment in order to effectuate Bureau, the authority to act on requests the Exchange must ensure a coverage coverage by the applicable coverage from qualified providers for waiver of effective date of January 1, 2014. effective date, provided that: these rules. The Report and Order also (ii) Between the first and fifteenth day (i) The payment date is no earlier than adopts a rule prohibiting all originating of any subsequent month during the the day before the coverage effective and intermediate providers from initial open enrollment period, the date. causing audible ringing to be sent to the Exchange must ensure a coverage (ii) The payment date policy is caller before the terminating provider effective date of the first day of the applied consistently to all applicants in has signaled that the called party is following month. a non-discriminatory manner. being alerted. (iii) Between the sixteenth and last * * * * * DATES: Effective January 16, 2014 except day of the month for any month for § 64.2201 of the Commission’s rules, between January 2014 and March 31, Dated: December 4, 2013. Marilyn Tavenner, which will become effective January 31, 2014 or between the twenty-fourth and 2014, and §§ 64.2103, 64.2105, and the thirty-first of the month of December Administrator, Centers for Medicare & 64.2107 and the information collection Medicaid Services. 2013, the Exchange must ensure a in paragraph 67 of this Report and coverage effective date of the first day of Approved: December 5, 2013. Order, which contains information the second following month. Kathleen Sebelius, collection requirements that have not (iv) Notwithstanding the requirement Secretary, Department of Health and Human been approved by Office of Management of paragraph (c)(1)(i) of this section, an Services. and Budget. The Federal Exchange or SHOP operated by a State [FR Doc. 2013–29918 Filed 12–12–13; 4:15 pm] Communications Commission will may require a January 1, 2014 effective BILLING CODE 4120–01–P publish a document in the Federal date for plan selection dates later than Register announcing the effective date December 23, 2013; a SHOP may also of §§ 64.2103, 64.2105, and 64.2107. establish plan selection dates as early as FEDERAL COMMUNICATIONS FOR FURTHER INFORMATION CONTACT: December 15, 2013 for enrollment in COMMISSION Gregory D. Kwan, Competition Policy SHOP QHPs for a January 1, 2014 Division, Wireline Competition Bureau, coverage effective date. 47 CFR Part 64 at (202) 418–1191. (v) Notwithstanding the regular SUPPLEMENTARY INFORMATION: effective dates set forth in this section, [WC Docket No. 13–39; FCC 13–135] This is a summary of the Commission’s Report an Exchange may allow issuers to Rural Call Completion provide for a coverage effective date of and Order in WC Docket No. 13–39, January 1, 2014 for plan selections AGENCY: Federal Communications FCC 13–135, released on November 8, received after December 23, 2013 and on Commission. 2013. The complete text of this document is available for public or before January 31, 2014, if a QHP ACTION: Final rule. issuer is willing to accept such inspection during regular business enrollments. SUMMARY: In this document the Federal hours in the FCC Reference Information Communications Commission Center, Room CY–A257, 445 12th Street * * * * * (Commission) improves its ability to SW., Washington, DC 20554. It is also PART 156—HEALTH INSURANCE monitor problems with completing calls available on the Commission’s Web site ISSUER STANDARDS UNDER THE to rural areas, and enforce restrictions at http://www.fcc.gov. This summarizes AFFORDABLE CARE ACT, INCLUDING against blocking, choking, reducing, or only the Report and Order in WC Docket STANDARDS RELATED TO restricting calls. The Report and Order No. 13–39; A summary of the EXCHANGES applies the new rules to providers of Commission’s Further Notice of long-distance voice service that make Proposed Rulemaking in WC Docket No. ■ 5. The authority citation for part 156 the initial long-distance call path choice 13–39 is published elsewhere in this continues to read as follows: for more than 100,000 domestic retail issue of the Federal Register. Authority: Title I of the Affordable Care subscriber lines, counting the total of all Synopsis of Report and Order business and residential fixed Act, Sections 1301–1304, 1311–1312, 1321, I. Introduction 1322, 1324, 1334, 1341–1343, and 1401– subscriber lines and mobile phones and 1402, Pub. L. 111–148, 124 Stat. 119 (42 aggregated over all of the providers’ 1. In this Order, we adopt rules to U.S.C. 18042). affiliates (referred to herein as ‘‘covered address significant concerns about ■ 6. Section 156.265 is amended by providers’’). In most cases, this is the completion of long-distance calls to revising paragraph (d) to read as calling party’s long-distance provider. rural areas. Doing so will help ensure follows: Covered providers include LECs, that long-distance calls to all interexchange carriers (IXCs), Americans, including rural Americans, § 156.265 Enrollment process for qualified commercial mobile radio service are completed. The record in this individuals. (CMRS) providers, and VoIP service proceeding leaves no doubt that * * * * * providers. These rules do not apply to completion rates for long-distance calls

VerDate Mar<15>2010 15:00 Dec 16, 2013 Jkt 232001 PO 00000 Frm 00024 Fmt 4700 Sfmt 4700 E:\FR\FM\17DER1.SGM 17DER1 wreier-aviles on DSK5TPTVN1PROD with RULES Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Rules and Regulations 76219

to rural areas are frequently poor— • Held a workshop to identify service. 47 U.S.C. 153(36). Our use of whether the call is significantly delayed, specific causes of rural call completion the term ‘‘one-way VoIP’’ in this Order the called party’s phone never rings, the problems and discuss potential is consistent with the definition of caller hears false busy signals, or there solutions with key stakeholders; ‘‘non-interconnected VoIP service’’ in are other problems. These failures have • Established dedicated avenues for the Communications Act, to the extent significant and immediate public rural consumers and carriers to inform such service offers the capability to interest ramifications, causing rural the Commission about call completion place calls to or receive calls from the businesses to lose customers, cutting problems; and PSTN. families off from their relatives in rural • Investigated and pursued 6. In addition, the Commission areas, and creating potential for enforcement of providers not complying adopted rules to address so-called dangerous delays in public safety with the statute and/or our rules, ‘‘phantom traffic,’’ that is, traffic that communications in rural areas. including a consent decree as well as an terminating networks receive that lacks 2. The rules that we adopt today are enforcement advisory regarding rural certain identifying information for calls. a critical step to eliminating this call completion problems. The lack of such basic information to significant problem by improving the We describe in greater detail the accompany calls has also resulted in Commission’s ability to monitor the Commission’s most significant actions, calls being delivered without the correct delivery of long-distance calls to rural which inform the legal and policy caller identification, which is a common areas, aiding enforcement action in actions that we take in this Order. call quality complaint in rural areas. In the USF/ICC Transformation Order, the connection with providers’ call 4. USF/ICC Transformation Order. On Commission found that service completion practices as necessary, as November 18, 2011, the Commission providers in the call path were well as aiding consumers and industry released the USF/ICC Transformation intentionally removing or altering by adopting a rule prohibiting false ring Order, which, among other things, identifying information to avoid paying signaling. In the Further Notice of established a number of new rules the terminating rates that would apply Proposed Rulemaking (FNPRM), we requiring carriers to adjust, over a if the call were accurately signaled and seek comment on additional measures period of years, many of their billed. The Commission adopted rules that may help the Commission ensure a terminating switched access charges requiring telecommunications carriers reasonable and nondiscriminatory level effective every July 1, as part of a of service to rural areas. and providers of interconnected VoIP transition to a bill-and-keep regime. The service to include the calling party’s II. Background Commission capped the vast majority of telephone number in all call signaling, interstate and intrastate switched access and required intermediate providers to 3. The Commission initiated this rates as of December 29, 2011. Price cap rulemaking in February 2013 to help pass this signaling information, and rate-of-return carriers were required unaltered, to the next provider in a call address problems in the completion of to make comparable reductions to long-distance telephone calls to rural path. certain intrastate switched access rates 7. 2012 Declaratory Ruling. In 2012, customers. This followed a series of in 2012 and 2013 if specified criteria the Wireline Competition Bureau issued Commission actions to address rural call were met. Beginning in 2014, price cap a declaratory ruling to clarify the scope completion concerns over the past and rate-of-return carriers begin a series of the Commission’s prohibition on several years. As discussed in greater of rate reductions to transition certain blocking, choking, reducing, or detail below, since 2007 the terminating interstate and intrastate restricting telephone traffic in response Commission has: switched access rates to bill-and-keep. • to continued complaints about rural call Adopted the USF/ICC The price cap transition occurs over six completion issues from rural Transformation Order, which, among years and the rate-of-return transition associations, state utility commissions, other things, reaffirmed the prohibition over nine years. and consumers. The 2012 Declaratory on call blocking; made clear that 5. The USF/ICC Transformation Order Ruling made clear that practices used carriers’ blocking of VoIP–PSTN traffic also re-emphasized the Commission’s for routing calls to rural areas that lead is prohibited; clarified that longstanding prohibition on call to call termination and quality problems interconnected and one-way VoIP blocking. The Commission reiterated may violate the prohibition against providers are prohibited from blocking that call blocking has the potential to unjust and unreasonable practices in voice traffic to or from the PSTN; and degrade the reliability of the nation’s section 201 of the Act or may violate the adjusted over a period of time many communications network and that call carriers’ section 202 duty to refrain from terminating switched access charges as blocking harms consumers. The unjust or unreasonable discrimination part of transition to a bill-and-keep Commission also made clear that the in practices, facilities, or services. The regime; general prohibition on call blocking by 2012 Declaratory Ruling also noted that • Issued two Declaratory Rulings carriers applies to VoIP-to-PSTN traffic. carriers may be subject to liability under clarifying that carriers are prohibited Finally, the Commission prohibited call section 217 of the Act for the actions of from blocking, choking, reducing, or blocking by providers of interconnected their agents or other persons acting for restricting traffic in any way, including VoIP services as well as providers of or employed by the carriers. The Bureau to avoid termination charges, and ‘‘one-way’’ VoIP services. The stated that the practices causing rural clarifying the scope of the Commission’s Communications Act defines ‘‘non- call completion problems ‘‘adversely prohibition on blocking, choking, interconnected VoIP service’’ as a affect the ubiquity and reliability of the reducing, or restricting telephone traffic service that enables real-time voice nation’s communications network and which may violate section 201 or 202 of communications that originate from or threaten commerce, public safety, and the Communications Act of 1934, as terminate to the user’s location using the ability of consumers, businesses, amended (the Act); Internet protocol or any successor and public health and safety officials in • Established a Rural Call Completion protocol, requires Internet protocol rural America to access and use a Task Force to investigate the growing compatible customer premises reliable network.’’ problems associated with calls to rural equipment, and does not include any 8. The NPRM. In February 2013, the customers; service that is an interconnected VoIP Commission adopted a Notice of

VerDate Mar<15>2010 15:00 Dec 16, 2013 Jkt 232001 PO 00000 Frm 00025 Fmt 4700 Sfmt 4700 E:\FR\FM\17DER1.SGM 17DER1 wreier-aviles on DSK5TPTVN1PROD with RULES 76220 Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Rules and Regulations

Proposed Rulemaking (NPRM) seeking 11. In addition to conducting ongoing areas, particularly areas served by rural comment on proposed reporting and investigations of several long-distance incumbent local exchange carriers data retention requirements. 78 FR providers, the Commission has been (ILECs) continue to be frequent and 21891, April 12, 2013. The NPRM addressing daily operational problems pervasive throughout rural America. proposed rules requiring facilities-based reported by rural customers and carriers The inability to complete calls reliably originating long-distance voice service so that incoming long-distance calling to threatens public safety and contravenes providers to collect, retain, and report to customers of rural incumbent local the public interest. We conclude that the Commission data on call answer exchange carriers (LECs) is promptly additional Commission action and rates. The NPRM also proposed rules restored. We have established dedicated enforcement are necessary to address requiring facilities-based originating avenues for rural customers and carriers these problems. long-distance voice service providers to to inform the Commission about these 14. Scope of the problems. The record collect and retain information on call call completion problems. A web-based indicates that rural call completion attempts and to periodically analyze call complaint intake focuses on the rural problems are serious and widespread. completion data and report the results call completion problems of residential NTCA has argued that ‘‘the call to the Commission. The NPRM and business customers, instructs such completion epidemic results in ‘dire proposed rules requiring facilities-based customers how to file complaints with consequences’ to consumers, economic originating long-distance providers with the Commission, and links to the development, and public safety across more than 100,000 retail long-distance Commission’s standard 2000B the nation.’’ The problems manifest subscribers (business or residential) to complaint form. Separately, a dedicated themselves in lengthy periods of dead file quarterly reports that measure the email intake provides a ‘‘hot email line’’ air on the calling party’s end after call answer rate for each rural operating for rural telephone companies to alert dialing a number, audible ringing tones company number (OCN) to which 100 the Commission of systemic problems on the calling party’s end when the or more calls were attempted during a receiving calls from a particular called party’s telephone never rings at calendar month, and to report on originating long-distance provider and all, false busy signals, inaccurate specific categories of call attempts. The facilitates provider-to-provider intercept messages, and the inability of NPRM also proposed requiring resolution. one or both parties to hear the other originating long-distance providers to 12. Many key stakeholders when the call does go through. The measure the overall call answer rate for acknowledge that call termination record contains substantial evidence nonrural call attempts to permit issues to rural service areas are serious that these problems persist; some state comparisons between long-distance and widespread and have collaborated that they are worsening. We also calls in rural versus nonrural local to propose industry solutions. For continue to receive information on the exchanges. example, in October 2011, stakeholders nature and extent of the rural call 9. Public Notice Seeking Comment on attended the Commission’s Rural Call completion problem. For example, we List of Rural OCNs. On April 18, 2013, Completion Task Force’s workshop to have received examples of life- the Wireline Competition Bureau identify and discuss potential solutions. threatening call failures, including a released a Public Notice seeking In 2012, the Alliance for situation where an on-call surgeon was comment on which rural OCNs covered Telecommunications Industry Solutions unable to receive a call from a hospital providers should include in the (ATIS) released the Intercarrier Call for emergency surgery and a 911 call proposed quarterly reports on call Completion/Call Termination Handbook center was unable to do emergency call completion performance. 78 FR 26572– outlining standards and practices of the backs. We also continue to take in 01, May 7, 2013. The Public Notice industry relevant to ensuring call individual complaints from consumers invited comment on the completeness completion. In August 2013, ATIS and and rural telephone companies affected and suitability of a list of rural OCNs NECA announced a voluntary Joint by these issues. compiled by the National Exchange National Call Testing Project offering 15. Although some commenters Carrier Association (NECA) and posted providers the opportunity to test call question whether the problems are on NECA’s Web site. completion issues identified on calls serious or widespread and whether 10. Enforcement Activity. The destined to many areas served by rural there is a need for Commission action, Commission’s Enforcement Bureau is local exchange carriers. The testing these comments are largely also actively responding to rural call project will facilitate cooperative unsubstantiated and are inconsistent completion problems. In March 2013, trouble resolution efforts with with the significant evidence and real- Level 3 Communications, LLC (Level 3) originating, intermediate and world Commission experience to the entered into a consent decree terminating carriers. Finally, we note contrary. We find the views of rural terminating the Enforcement Bureau’s that some providers have devoted carriers and our state partners more investigations into possible violations of substantial time and resources to persuasive, given their direct experience sections 201(b) and 202(a) of the Act analyzing rural call completion with complaints about call completion with respect to Level 3’s call completion performance. We applaud these and performance. We therefore find a practices to rural areas, including its use other efforts by stakeholders and sufficient basis for proceeding with the and monitoring of intermediate encourage the continued support of the rules we adopt today, and can revisit providers. On July 19, 2013, the industry to undertake further efforts to these rules in the future as warranted by Enforcement Bureau issued an advisory diagnose problems in call routing, the data we will be collecting, which to long-distance providers to take cooperate on finding solutions, and should provide evidence regarding the consumer complaints about rural call adopt best practices aimed at solving the scope and extent of call completion completion seriously. The advisory gave rural call completion problem. problems over time. examples of plainly insufficient 16. Causes of the Problems. There provider responses and warned that III. Discussion appear to be multiple factors that cause ‘‘[g]oing forward, the FCC may take 13. Even with the significant rural call completion problems. Rural enforcement action against providers Commission actions described above, associations posit that the call that submit such patently deficient the record leaves no doubt that the completion problems may arise from the responses to informal complaints.’’ problems of completing calls to rural manner in which originating providers

VerDate Mar<15>2010 15:00 Dec 16, 2013 Jkt 232001 PO 00000 Frm 00026 Fmt 4700 Sfmt 4700 E:\FR\FM\17DER1.SGM 17DER1 wreier-aviles on DSK5TPTVN1PROD with RULES Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Rules and Regulations 76221

set up the signaling and routing of their A. Recording, Retention, and Reporting data. Upon reviewing the record, we calls, and that many of these call routing of Data agree and conclude that the entity with the most direct access to call delivery and termination problems can be 1. Scope attributed to intermediate providers. data and the ability to control the call They argue that least cost routing 19. Summary. We adopt recording, path (either directly or via contract) is carriers offer terminating services at low retention, and reporting requirements to the appropriate entity to record, retain, substantially increase our ability to rates, and that some least cost routing and report the relevant data. monitor and redress problems carriers may provide inferior service for Accordingly, we conclude that these associated with completing calls to rural a low rate. rules should apply to providers of long- areas. These rules will also enhance our distance voice service that make the 17. One key reason for the increased ability to enforce restrictions against initial long-distance call path choice for problems in rural areas is that a call to blocking, choking, reducing, or more than 100,000 domestic retail a rural area is often handled by restricting calls. For the reasons set forth subscriber lines, regardless of whether numerous different providers in the below, we find that the recording, those providers are facilities-based. The call’s path. Given the particularly high retention, and reporting rules should 100,000-subscriber-line figure should rates long-distance providers incur to apply to providers of long-distance include the total of all of a provider’s terminate long-distance calls to rural voice service that make the initial long- business and residential fixed rate-of-return carriers, long-distance distance call path choice for more than subscriber lines and mobile phones, providers have additional incentives to 100,000 domestic retail subscriber lines, aggregated over all of the provider’s reduce the per-minute cost of calls. For counting the total of all business and affiliates. By ‘‘initial long-distance call example, the disparity between residential fixed subscriber lines and path choice,’’ we refer to the static or mobile phones and aggregated over all interstate rates can be 5–6 cents per dynamic selection of the path for a long- of the providers’ affiliates (referred to minute for rate-of-return areas and just distance call based on the called herein as ‘‘covered providers’’). In most over half a cent per minute for price cap number of the individual call. For cases, this is the calling party’s long- facilities-based providers, this decision areas. As a result, there is greater distance provider. As discussed below, incentive for the long-distance provider may include choosing to deliver the call covered providers include LECs, on the provider’s own network. This to hand off the call to an intermediate interexchange carriers (IXCs), provider that is offering to deliver it approach will ensure that we impose commercial mobile radio service data-related requirements on the cheaply—and potentially less incentive (CMRS) providers, and VoIP service providers that have the relevant to ensure that calls to rural areas are providers. The recording, retention, and information. Examples may illustrate actually completed properly. The reporting rules we adopt today apply to how this rule would work in practice: prevalence of these problems accords providers of interconnected VoIP • with providers’ incentives to engage in service, as that term is defined in If originating provider A hands all long-distance calls to a single IXC–1 blocking or degrading traffic, or similar section 9.3 of the Commission’s rules, under a 12-month contract, originating behavior, in an effort to minimize their 47 CFR 9.3, and to providers of VoIP provider A is not a ‘‘covered provider’’ intercarrier compensation payments, service that permits users generally to for purposes of these rules. If IXC–1 which has been long recognized by the terminate calls to the PSTN, but not to receive calls from the PSTN (one-way examines the number called in order to Commission. While the Commission’s select among alternative downstream comprehensive reform of intercarrier VoIP). For ease of reference, in this Order, the terms ‘‘VoIP service’’ or providers LCR–1, LCR–2, and LCR–3, compensation will alleviate some of then IXC–1 would be the covered these price differences in the long-term, ‘‘VoIP services’’ are sometimes used to refer collectively to interconnected VoIP provider because it is making the initial it likely will continue to be more costly service and one-way VoIP service. route selection decision. The to complete calls to rate-of-return Finally, we do not apply these rules to intermediate providers LCR–1, LCR–2, carriers while the transition to bill-and- intermediate providers. and LCR–3 are not covered providers in keep is implemented over the next 20. Covered Providers. The NPRM this example. several years. proposed to require facilities-based, • If originating provider B is 18. The Commission has determined originating long-distance voice service allocating long distance calls between that call blocking is an unjust and providers to comply with recording, IXC–2 and IXC–3 based on geographic unreasonable practice under section retention, and reporting obligations. The origination (e.g., different LATAs), 201(b) of the Act, and the Wireline NPRM proposed that if the originating volume (e.g., 50% to IXC–2 and 50% to Competition Bureau has made clear that long-distance voice service provider IXC–3), or basic jurisdiction (i.e., all carriers’ rural call routing practices that were not facilities-based, the first intrastate to IXC–2, and all interstate lead to call termination and quality facilities-based provider in the call- and international to IXC–3), and IXC–2 problems may violate the prohibition delivery path would be subject to the and IXC–3 are making the initial route rules. The Commission’s proposal to selection among downstream against unjust and unreasonable limit application of the rules to intermediate providers based on the practices in section 201(b) of the Act. In facilities-based providers was premised called party number, then IXC–2 and the USF/ICC Transformation Order, the on the belief that those providers would IXC–3 are covered providers but Commission extended its longstanding have the greatest access to call detail originating provider B is not. Notably, a prohibition on call blocking to providers information. In response to the covered provider that also serves as an of interconnected and one-way VoIP proposed categories of covered intermediate provider for other service. We emphasize that providers, several commenters urged the providers may—but need not—segregate interconnected and one-way VoIP Commission to clarify or expand what is its originated traffic from its service providers may violate this considered a covered provider, noting intermediary traffic in its recording and prohibition if they block, choke, reduce, that the first facilities-based provider in reporting, given the additional burdens or restrict traffic on calls placed to a call path is not always the entity with such segregation may impose on such customers of rural telephone companies. the most direct access to call delivery providers.

VerDate Mar<15>2010 15:00 Dec 16, 2013 Jkt 232001 PO 00000 Frm 00027 Fmt 4700 Sfmt 4700 E:\FR\FM\17DER1.SGM 17DER1 wreier-aviles on DSK5TPTVN1PROD with RULES 76222 Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Rules and Regulations

• If originating provider C selects VoIP services as allowing users to will obtain the data we need to identify IXC–4 for all long-distance calls where receive calls from, or place calls to, the and analyze patterns of call completion the called number is east of the PSTN, but not both; here, where we are problems. In addition, the Act provides Mississippi River and selects IXC–5 for concerned about termination issues, we that ‘‘the act, omission, or failure of any long-distance calls where the called refer to VoIP services that allow users to officer, agent, or other person acting for number is west of the Mississippi River, place calls to the PSTN but not to or employed by any common carrier or then originating provider C is making receive them. One-way VoIP providers user, acting within the scope of his the initial routing decision based on the have significant numbers of subscribers employment, shall in every case be also called party’s number and is a covered to their services, and some data suggest deemed to be the act, omission, or provider, and IXC–4 and IXC–5 are not that one-way VoIP usage is increasing. failure of such carrier or user as well as covered providers with regard to traffic Indeed, there is no relevant distinction that of the person.’’ Although we from originating provider C. in our record between ‘‘one-way’’ VoIP decline at this time to require 21. The NPRM proposed that the and interconnected VoIP, as the rural intermediate providers to comply with types of providers covered by these call completion problem we are these rules, the Enforcement Bureau rules include LECs, IXCs, CMRS addressing here inherently is ‘‘one continues to have the authority to providers, and interconnected VoIP way’’—calls terminating to rural areas. investigate and collect additional service providers. The Commission also The Commission needs data from one- information from intermediate providers sought comment on whether other types way VoIP providers as well as when pursuing specific complaints and of providers, such as one-way VoIP interconnected VoIP providers in order enforcement actions. We also remind service providers, should be subject to to obtain a complete picture of the rural intermediate providers that our rules these rules. We conclude that long- call completion problem and address it already require, within thirty days of the distance voice service providers, effectively. commencement of providing services, including LECs, IXCs, CMRS providers, 24. Affiliated Providers. We note that telecommunications carriers, certain and interconnected and one-way VoIP covered providers may be affiliated with other providers of telecommunications, service providers, must comply with other covered providers. To minimize interconnected VoIP service providers, these rules when they make the initial the burden on such providers, affiliated and certain non-interconnected VoIP long-distance call path choice. In order providers may record, retain, and report providers to register with the for us to fulfill our statutory obligations, the information required herein Commission and designate agents for these providers must collect, retain, and individually or aggregated to the service of process in the District of report the information required by these holding-company level. To the extent Columbia. In the attached FNPRM, we rules. that covered providers choose to file seek comment on addressing 22. Commenters generally support the individually by affiliate, they may do so intermediate providers going forward. application of the rules to LECs, IXCs, in whatever arrangement they choose. and CMRS providers. Although some For example, if three covered providers 27. Exception for Smaller Covered commenters argue that the proposed are affiliated, two of those providers Providers. Consistent with the NPRM, rules should not apply to may record, retain, and report data we require only providers of long- interconnected VoIP service providers, together, while the third does so distance voice service that make the there is also significant record support individually. Furthermore, we do not initial long-distance call path choice for for adopting the proposal to apply the consider affiliates of a covered provider more than 100,000 domestic retail rules to interconnected VoIP service to be ‘‘intermediate providers’’ of that subscriber lines (counting the total of all providers. Commission data show that covered provider for the purposes of business and residential fixed end users are increasingly obtaining these rules. subscriber lines and mobile phones and service from interconnected VoIP 25. Intermediate Providers. The aggregated over all of the providers’ providers, such as cable companies. For NPRM sought comment on whether we affiliates) to comply with the recording, the Commission to address the serious should impose recording, retention, and retention, and reporting rules. public interest harms, we must include reporting requirements on intermediate Commenters generally supported this the providers that serve approximately providers and, if so, how. Some approach. Although some commenters one-third of residential customers. commenters argue that the Commission argue that this threshold should be Indeed, if we do not apply these rules should impose these requirements on lower, doing so would burden many to providers of VoIP service, other intermediate providers to provide the providers with new obligations without providers could circumvent the rules by Commission with more data in its significantly improving the data that are working with a VoIP service provider to efforts to identify sources of call filed with the Commission. Exclusion of ensure that the VoIP service provider completion problems and incent smaller providers should not makes the initial long-distance call path intermediate providers to ensure high compromise our ability to monitor rural choice. Moreover, data and comments levels of call completion over their call completion problems effectively. A filed in the record indicate that calls networks. Others disagree, questioning review of fixed and mobile subscription that originated with VoIP service whether the benefits produced by these counts reported to the Commission via providers, like other originating additional data would justify the burden Form 477 reveals that the 100,000- providers, face significant rural call associated with imposing recording, subscriber-line threshold should capture completion issues. Accordingly, retention, and reporting requirements as much as 95 percent of all callers. interconnected VoIP service providers on a large number of intermediate Additionally, many providers that have that make the initial long-distance call providers. 100,000 or fewer subscriber lines are not path choice must comply with the 26. At this time, we conclude that covered providers because they are recording, reporting, and retention rules intermediate providers are not required reselling long-distance service from we adopt today. to comply with the recording, retention, other providers that make the initial 23. For similar reasons, we see no and reporting rules we adopt today. long-distance call path choice. Providers basis for excluding one-way VoIP Because the rules extend to providers that do not meet the 100,000-subscriber- providers from the scope of our rules. that make the initial long-distance call line threshold continue to be subject to The Commission has described one-way path choice, we expect the Commission the prohibition against blocking calls,

VerDate Mar<15>2010 15:00 Dec 16, 2013 Jkt 232001 PO 00000 Frm 00028 Fmt 4700 Sfmt 4700 E:\FR\FM\17DER1.SGM 17DER1 wreier-aviles on DSK5TPTVN1PROD with RULES Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Rules and Regulations 76223

the section 201 prohibition against and that of their intermediate providers the people of the United States . . . a unjust and unreasonable carrier than they have had in the past. These rapid, efficient, Nation-wide, and world- practices, and the section 202 data also will enable the Commission to wide wire and radio communication prohibition on unjust and unreasonable evaluate the need for other steps, service with adequate facilities at discrimination. Finally, although we whether more specific requirements reasonable charges, for the purpose of exempt such providers at this time, the implementing section 201(b), such as the national defense, [and] for the Enforcement Bureau continues to have specific standards regarding call purpose of promoting safety of life and the authority to investigate and collect completion performance, or other property through the use of wire and additional information from such actions. For similar reasons, the records radio communications.’’ providers when pursuing specific to be reported under our new rules also 33. We disagree with the sole complaints and enforcement actions. will aid the Commission’s efforts to commenter who questioned our The Commission will continue to look ensure that provider practices, facilities, jurisdiction to apply recording, into complaints from rural LECs and or services do not unjustly or retention, and reporting requirements to consumers and pursue enforcement unreasonably discriminate against rural intrastate long distance calls. Telephone action where warranted. localities, which could violate section services are jurisdictionally mixed 202(a). services, and allowing providers to 2. Legal Authority 30. Our authority to adopt these rules record, retain, and report only interstate 28. The NPRM set out several sources also derives from section 251(a) because information would provide an of legal authority that support the these rules will allow us to ensure that incomplete picture of the rural call proposals to require covered providers all Americans in rural and nonrural completion problem and leave us poorly to retain and report call completion areas receive the benefits of equipped to ensure that calls are being data, and sought comment on the interconnection. For example, the properly completed. Indeed, to the conclusion that such authority was record reflects that some providers are extent that our data collection will help sufficient to adopt the proposals and purchasing voice termination services us diagnose precisely where rural call ‘‘any additional sources of possible that are of low quality—both in terms of failures occur in the network (and that authority.’’ We conclude that we have quality of service and in terms of the network is used for both intrastate and ample direct authority to adopt this reliability of delivery to terminating interstate calls), collecting only a partial Order and the accompanying rules by carriers— and rely on indirect picture of rural call completion rates virtue of sections 1, 4(i), 201(b), 202(a), interconnection with rural carriers that may prevent us from ensuring that 218, 220(a), 251(a), and 403 of the Act. is not always reliable. To identify the interstate calls are properly being We also conclude that we have ancillary source of the problems in terminating completed. In addition, as the Supreme authority to apply the requirements calls—and to assess whether there is a Court has made clear, ‘‘[section] 201(b) adopted in this Order to VoIP service potential failure of ‘‘direct or indirect explicitly gives the FCC jurisdiction to providers as discussed below, to the interconnection’’ of the sort the make rules governing matters to which extent those providers are not otherwise Commission can address under section the 1996 Act applies,’’ which includes subject to our direct authority under the 251(a)(1)—the Commission needs matters covered by section 251(a). We Act. relevant data. Likewise, insofar as therefore have authority to adopt the 29. Direct Authority. As an initial individuals with disabilities live in data collection, retention, and reporting matter, call detail records are crucial to rural areas experiencing call completion rules in this Order both for interstate the Commission’s ability to fulfill its problems, these data are likely to be and intrastate traffic. responsibilities under section 201 of the important tools in targeting 34. Many commenters support Act. As we have previously made clear, investigations of whether long distance applying the recording and reporting blocking, choking, reducing, or providers have configured their obligations to intrastate as well as restricting traffic in any way, including networks in ways that do not comply interstate long-distance calls. Our state to avoid transport and termination with the accessibility requirements partners, in particular, strongly agree charges, generally constitutes an unjust adopted under section 255, as required that we should apply our requirements and unreasonable practice under section by section 251(a)(2), and if so, what to intrastate calls. We look forward to 201(b) of the Act. The recording, further actions are warranted. working with our state partners—some retention, and reporting rules we adopt 31. Moreover, the Act provides the of whom may be strained for resources today will help us identify instances in Commission with ample authority to: (1) to address these problems themselves— which long-distance providers or their Inquire into and keep itself apprised of to ensure that customers of rural carriers agents may have violated section 201(b) carriers’ business management do not continue to suffer from poor by blocking or otherwise restricting or practices; (2) obtain from carriers full termination rates. degrading calls placed to rural and complete information necessary to 35. Ancillary Authority. The consumers. Once such instances have enable the Commission to perform the Commission has ancillary authority to been identified, we can then duties for which it was created; and (3) impose these rules on providers of intelligently marshal our resources. For prescribe the form for these records and interconnected and one-way VoIP example, we can use those data to reports. Adopting recording, retention, services, to the extent that they are not evaluate provider performance and to and reporting rules as described below already subject to the direct authority inform enforcement actions, where will allow the Commission to better just described. Most commenters agree. necessary. We anticipate that this identify patterns of rural call Ancillary authority may be employed, at prospect of enforcement will help to completion problems and address them the Commission’s discretion, when the further deter providers from engaging in in fulfillment of our statutory Act ‘‘covers the regulated subject’’ and unjust or unreasonable practices and obligations. the assertion of jurisdiction is hence reduce call completion problems 32. Our actions also advance the goals ‘‘reasonably ancillary to the effective to customers in rural America. Indeed, set out in other provisions of the Act. performance of [the Commission’s] as providers collect data as required Section 1 of the Act makes clear that the various responsibilities.’’ Both under this Order, many will have Commission’s purposes include ‘‘to predicates for ancillary authority are greater insight into their performance make available, so far as possible, to all satisfied here.

VerDate Mar<15>2010 15:00 Dec 16, 2013 Jkt 232001 PO 00000 Frm 00029 Fmt 4700 Sfmt 4700 E:\FR\FM\17DER1.SGM 17DER1 wreier-aviles on DSK5TPTVN1PROD with RULES 76224 Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Rules and Regulations

36. First, the Act gives the performance of our duties under number; called party number; date; time Commission jurisdiction over interstate sections 201(b) and 202(a). of day; whether the call is handed off to ‘‘communication by wire or radio.’’ 38. In addition, if we do not apply an intermediate provider and, if so, VoIP service connected to the PSTN is these requirements to providers of VoIP which intermediate provider; whether clearly such communication, because it service, telecommunications carriers the call is going to a rural carrier and, involves transmission of voice by aid of could evade the rules by partnering with if so, which rural carrier, as identified wire, cable, or other like connection a VoIP provider in a way that allows the by its OCN; whether the call is and/or transmission of voice by radio. VoIP provider to make the initial call interstate; and whether the call attempt These services are therefore covered by routing decision, thereby allowing the was answered. We sought comment on the Commission’s general jurisdictional carrier to circumvent the requirements this approach and on the degree to grant under Title I. we adopt today and undermine the which providers typically retain this 37. Second, requiring providers of purpose of those rules. Such a carrier information in the ordinary course of VoIP service to comply with these could therefore arrange for low-cost, business. We now conclude that these recording, retention, and reporting low-quality terminations of its data—as well as certain cause code requirements is ‘‘reasonably ancillary to customers’ calls to the customers of information—are necessary to permit us the [FCC’s] effective performance of its rural LECs without the threat of to identify and redress call completion statutorily mandated responsibilities’’ enforcement action from the problems. under sections 201(b), 202(a), and Commission. For example, there is 41. Covered providers must begin evidence on the record that, in at least recording the required data on the first 251(a)(1). The problems that cause us to one instance, a non-facilities-based day of the calendar month that is at least impose these requirements relate to reseller makes the initial long-distance 20 days after the effective date of the terminating LECs—clearly common call path choice. If that reseller making information collections in these rules, carriers providing interstate service— the initial long-distance call path choice which will be announced in the Federal that are unable to provide satisfactory uses VoIP technology, in the absence of Register upon approval of the service to their customers due to the recording, retention, and reporting collections by the Office of Management routing practices of other providers requirements for VoIP providers, both it and Budget (OMB). Thus, for example, handling the call, thus leaving these and the customers for which it makes if the effective date of the information terminating LECs susceptible to the initial long-distance call path choice collections as announced in the Federal erroneous complaints that they are would avoid these rules, and the Register is on January 5, providers must engaged in unjust, unreasonable, or Commission would receive no data on begin recording the required data on otherwise unlawful charges or practices retail long-distance call attempts made February 1; if the effective date as under sections 201(b), 202(a), or a by the customers of the providers using announced is on January 20, providers combination thereof. These LECs offer the reseller’s services. Such must begin recording their data on their customers a telephone service that circumvention would prevent ‘‘the March 1. The Wireline Competition allows the customer to receive long- effective performance of [our] statutorily Bureau will also issue a public notice distance calls from anywhere, but due to mandated responsibilities’’ under announcing when providers must begin other providers’ routing practices, sections 201(b) and 202(a); therefore recording data. interconnection arrangements, and/or extending our rules to cover VoIP long- a. Data To Be Recorded and Retained network configurations, calls to the distance providers and eliminating this rural LECs’ customers have experienced opportunity for circumvention is 42. On balance, the record supports significant problems with reliability. ‘‘reasonably ancillary’’ to the effective the categories of call attempt data The rules we adopt in this Order will performance of our duties for this proposed in the NPRM. The Rural help clarify where the blame lies, reason as well. Associations argue that ‘‘this alleviating the problem of erroneous 39. The recording and reporting information is or should be readily complaints lodged against terminating requirements will also aid the available to providers since it is rural LECs by helping resolve Commission in ensuring that VoIP typically used to calculate bills and [for] complaints in an expeditious manner providers fulfill their obligations call verification as well as to confirm and reducing the burden on all parties, pursuant to the call blocking ban charges assessed by other providers for including rural LECs and the extended to one-way and transport and termination.’’ Although Commission. VoIP service constitutes a interconnected VoIP service providers some commenters claim that most significant and growing portion of the in the USF/ICC Transformation Order, carriers do not currently retain the long-distance telephone market, and and the application of the rules we proposed call detail information, or according to evidence in the record is adopt today to providers of VoIP service retain only some of the information, we also causing some terminating LECs to connected to the PSTN is therefore find that the proposed categories of call be unable to ensure their customers a reasonably ancillary to the same data are necessary for the Commission reasonable quality of service. Absent the statutory authority that provided the to monitor rural call completion application of these rules to providers of basis for the relevant Commission action problems. Having access to call detail VoIP service connected to the PSTN, in the USF/ICC Transformation Order. records (CDRs) is essential for carriers to terminating LECs may be suspected of For these reasons, we conclude that identify patterns of problems and causing rural customers to experience imposing the recording, retention, and develop effective, targeted solutions. If, service problems that in fact were reporting requirements meets the for example, these CDRs reveal a caused by VoIP providers or their second predicate for ancillary authority. particularly low call completion rate to intermediate providers (and the a specific rural OCN, this might indicate interconnection arrangements between 3. Recording and Retention an inaccuracy in that provider’s routing and among these providers), and may Requirements tables or the presence of a downstream unfairly be the subject of complaints. 40. The NPRM proposed to require intermediate provider engaged in call The prevention of this problem through covered providers to record and retain blocking. Identifying such patterns the periodic reporting of relevant data is the following information for each long- would be significantly more difficult reasonably ancillary to the effective distance call attempt: Calling party without recording and retaining call

VerDate Mar<15>2010 15:00 Dec 16, 2013 Jkt 232001 PO 00000 Frm 00030 Fmt 4700 Sfmt 4700 E:\FR\FM\17DER1.SGM 17DER1 wreier-aviles on DSK5TPTVN1PROD with RULES Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Rules and Regulations 76225

detail records at the level of granularity interstate or intrastate, and to report originating and terminating provider. required by the rules we adopt today. data on interstate and intrastate calls The NPRM proposed that the data While we are mindful of the burdens, separately. To identify the source of collection requirements cover, at a particularly on providers that do not problems and take appropriate action, minimum, the following categories of already collect or retain this we need complete data. Indeed, several long-distance call traffic: Originating information, we find that the state entities support the Commission’s provider to rural telephone company information we require is narrowly collection of interstate and intrastate (including rural CLEC), originating tailored to give the Commission data call data as a positive step for provider to nonrural LEC (including necessary to analyze the issue and take monitoring rural call completion nonrural CLEC), first facilities-based action to address call completion problems. provider to rural telephone company problems. 46. While we considered providing (including rural CLEC), and first 43. We also agree with those greater flexibility to providers to choose facilities-based provider to nonrural commenters that encourage the whether to record and report data for LEC (including nonrural CLEC). The Commission to require covered interstate and intrastate call attempts NPRM sought comment on whether all providers to record and retain certain separately or together, we decide that these proposed categories are necessary signaling cause code information. The having consistent data sets across and whether other categories of calls information would allow providers and providers is necessary to a clear analysis should also be included. the Commission to calculate and of rural call completion problems. For 49. We conclude that the only call evaluate the statistical significance of a example, if we were to compare the attempts that need to be retained are provider’s call answer rate, which is the performances of various providers in those to incumbent LECs that are rural ratio of the number of calls answered to completing calls to a particular rural telephone companies, as identified by the number of calls attempted. The call destination, it would be important to OCN. Evidence indicates that the rural answer rate provides valuable know that the performances we were call completion problems are largely information for identifying problem comparing included the same types of confined to such carriers; one reason areas but does not distinguish among calls (e.g., interstate, intrastate, or both). may be that rate-of-return carriers have categories of calls that are not answered. In addition, inconsistent data could terminating access rates tend to be To have a better understanding of the potentially mask problems that higher than those of other carriers. In rural call termination problems, having consumers are actually experiencing, if addition, we note that originating cause codes for unanswered calls will the call volume for one category is providers process substantially more allow us to distinguish among calls that substantially higher than the other. We calls to nonrural areas than to rural generate busy signals, calls that ring but will also be better able to advise our areas each day—according to Verizon, are not answered, and calls to state partners of relevant problems 89.5 percent of long-distance calls may unassigned numbers, and to identify within their states. While the record be to nonrural destinations. Thus calls that never reach the intended suggests that distinguishing between requiring covered providers to retain destination. We recognize that these interstate and intrastate calls may records only for calls to rural incumbent data are imperfect—we understand, for require some providers to make LECs may substantially reduce the example, that user busy signaling may adjustments to their systems, we believe burden of compliance. Finally, we are in reality reflect network problems—but these adjustments are warranted so that unaware of any complaints that the list they will improve our ability as well as we can quickly and efficiently identify of proposed rural OCNs on which the that of providers to monitor and pursue any problems. Commission sought comment did not performance and narrow in on specific 47. One commenter suggests that the include rural competitive LECs. Indeed, problems. As such, in addition to the Commission should limit the NTCA agrees that so long as we retain eight data points proposed in the NPRM, requirements to interstate calls so that the data for calls to rural incumbents, we require covered providers to record intrastate long-distance providers will there is no need to maintain that same an indication whether the call attempt not be burdened by duplicative or data for calls to nonrural carriers. was completed to the incumbent local conflicting state requirements. While 50. We disagree with the commenter exchange carrier but signaled as busy, some states are acting to address rural that argues we should include calls that ring no answer, or unassigned number. call completion problems, we are not terminate to CMRS subscribers. For most providers, this indication is aware of any overlap or conflict with the Evidence indicates that calls to CMRS likely to take the form of an SS7 rules we adopt today. Indeed, we customers are unlikely to suffer from the signaling cause code or SIP signaling believe that these rules will help states completion problems affecting long- message code associated with each call monitor and address rural call distance calls to rural wireline attempt. completion problems too, and also telephone subscribers because calls to 44. In contrast, we disagree with enable them to address rural call CMRS subscribers normally do not commenters that encourage the completion problems with us jointly. incur high termination access charges in Commission to require covered Thus, we disagree that collecting rural areas. Moreover, calls that providers to record and retain post-dial intrastate call information will be terminate to CMRS customers have not delay. Because the retention and duplicative of state requirements. To the been the subject of the same or similar reporting of average post-dial delay extent that covered providers identify volume of complaints as have calls to information is of limited utility, and the areas where the requirements we adopt rural LECs. Therefore, we decline to accumulation and reporting of useful today duplicate or conflict with state include calls that terminate to CMRS post-dial delay data by rural OCN is commission regulation, we will subscribers in the categories of call complex, we decline to add this consider those specific circumstances attempts to be recorded and retained. category of call detail information to the when they are brought to our attention. 51. Calls delivered on-network. One recording and retention requirements. commenter asserts that intraLATA toll 45. Interstate and Intrastate Call Data. b. Categories of Call Attempts To Be traffic and interLATA traffic carried on We require covered providers to record Recorded its own network and handed off directly data for all domestic long-distance calls, 48. The NPRM proposed to categorize by the originating provider to the regardless of whether the calls are long-distance call attempts by type of terminating LEC should be excluded

VerDate Mar<15>2010 15:00 Dec 16, 2013 Jkt 232001 PO 00000 Frm 00031 Fmt 4700 Sfmt 4700 E:\FR\FM\17DER1.SGM 17DER1 wreier-aviles on DSK5TPTVN1PROD with RULES 76226 Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Rules and Regulations

because this traffic would not likely the Commission that segregate 58. We find that excluding call cause call completion issues. Even if autodialer traffic from other traffic, attempts handed back to the upstream this traffic would incur fewer call accompanied by an explanation of the provider is both appropriate and completion issues, we decline to method the provider used to identify the practicable. To obtain a fair measure of exclude this traffic because it provides autodialer traffic. This approach should total call attempts, we find it an important benchmark for issue-free help the Commission examine the appropriate to exclude call attempts performance. This is especially true in effects of autodialer traffic on call handed back to the upstream provider instances where a provider may be completion rates and the degree to from the recording and retention using both on-net and off-net routes to which those effects are magnified in requirements if the upstream provider deliver calls to the same terminating more sparsely populated rural makes further attempts to complete the provider. numbering blocks, as well as to identify call, whether on its own network or 52. Autodialer Traffic. The NPRM more effective means of segregating this through a different intermediate acknowledged that some providers may traffic. provider. Covered providers should handle substantial amounts of confirm that they have excluded such autodialer traffic on behalf of business c. Inclusion or Exclusion of Certain Call hand backs when reporting their results. customers who may have call Attempt Types Inteliquent observes that some completion expectations and capacity 55. The NPRM sought comment on providers, especially CMRS providers, requirements that differ from those of the feasibility and appropriateness of are ‘‘unable to take back a call that an residential and business callers. The including or excluding certain types of intermediate provider is unable to Commission noted, for example, that an call attempts from the recording and complete.’’ Our understanding is that autodialer may be programmed to hang retention requirements. For the reasons calls are not handed back to originating up before a call attempt can be set forth below, we include call attempts providers in such cases, and these rules answered by voicemail or an answering of very short duration and exclude call would not apply as there are no calls machine. We thus sought comment on attempts handed back to an upstream that are handed back and no new whether such traffic can be reliably provider and call attempts to toll-free systems for detecting calls handed back identified and, to the extent that it can numbers. would be required. Under those be identified, whether it should be 56. Calls of Short Duration. The circumstances, there is no risk of double excluded from the recording and NPRM sought comment on whether counting a single call attempt, so there retention requirements. calls of very short duration, such as is no need for CMRS providers to 53. Some commenters indicate that those lasting for less than two seconds, develop new systems to properly they can reliably identify retail should be excluded from the recording account for such calls. autodialer traffic because it is delivered 59. Toll-Free Numbers. The NPRM and retention requirements. Some on a dedicated connection. Another sought comment on whether calls to commenters encourage the Commission commenter, however, argues that such toll-free numbers can be reliably to include these calls while others traffic cannot be reliably identified. To identified and excluded. Some contend that we should exclude these the extent that it can be identified, commenters argue that calls to toll-free calls ‘‘because they are often wrong several commenters suggest that numbers should be excluded, noting numbers, are made by mass dialers, autodialer traffic should be excluded that in many instances it is the toll-free because it has the potential to skew call and/or do not provide the called party service provider, and not the originating completion results. One commenter ample time to answer.’’ We find that it service provider, that controls the suggests that the Commission should is appropriate to include calls of short routing of those call attempts. However, only allow covered providers to exclude duration. While there are myriad other commenters contend that calls to autodialer traffic to the extent that they reasons why a call may be very brief, a toll-free numbers should not be can identify and segregate emergency short call could reflect an inability to excluded from the recording and autodialer call attempts, while another complete a call to the intended called retention requirements. commenter argues that all autodialer party, a dropped call, poor call quality, 60. We conclude that calls to toll-free traffic should be included in the or that the calling party hung up just as numbers should be excluded. In many recording and retention requirements, the called party answered, all of which instances, the originating provider has particularly given concerns about are relevant to the issues the no control over the routing or the completion of important autodialed Commission is attempting to address. quality of call attempts to toll-free emergency alert calls. We thus conclude that calls of very numbers, and to include these call 54. While we agree that there are short duration should be included in the attempts in the recording and retention characteristics unique to autodialer recording and retention requirements. requirements would require covered traffic that may make it likely to skew Covered providers may submit an providers to include data on call call completion performance results, the explanation for any apparent anomalies attempts for which they can take no record in this proceeding is unclear on when they submit their reports. remedial steps in the event of the degree to which providers can 57. Calls Handed Back. The NPRM completion problems. We thus exclude reliably identify and segregate this proposed to exclude call attempts that call attempts to toll-free numbers from traffic when recording their long- are handed back to the upstream the recording and retention distance call attempts. We are confident provider in order to avoid double- requirements. that the impact of autodialer traffic can counting of the same phone call, and be accounted for and will not sought comment on the feasibility and d. Retention Period undermine the reliability of the data for appropriateness of doing so. The record 61. The NPRM proposed that covered our purposes. For these reasons, we strongly supports the proposal and providers retain call detail records in a require covered providers to include several commenters contend that it is readily retrievable form for at least six autodialer traffic in their recording, ‘‘easily achievable,’’ while CTIA claims calendar months. We find that the six- retention and reporting. Covered that excluding these attempts will month retention period best balances providers may, however, submit require the development of new systems the Commission’s need for access to separate calculations in their reports to to identify these calls. these data in support of its efforts to

VerDate Mar<15>2010 15:00 Dec 16, 2013 Jkt 232001 PO 00000 Frm 00032 Fmt 4700 Sfmt 4700 E:\FR\FM\17DER1.SGM 17DER1 wreier-aviles on DSK5TPTVN1PROD with RULES Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Rules and Regulations 76227

eliminate rural call completion contention that the proposed rules will separate calculations that segregate problems, including enforcement cost billions of dollars industry-wide is autodialer traffic from other traffic, actions, with the burden on providers based on several erroneous accompanied by an explanation of the associated with compliance. Some assumptions. For example, Sprint’s method the provider used to identify the commenters support the six-month assertion that the rules will apply to autodialer traffic. Before any reports are retention period, emphasizing the utility ‘‘hundreds or thousands of other due, the Wireline Competition Bureau of the recording and retention originating carriers’’ does not reflect the will release a public notice that explains requirements in the Commission’s fact that our rules will apply only to the filing mechanism in detail. Bureau efforts to identify patterns of rural call providers that make the initial long- staff will work with providers to ensure completion problems and take distance call path choice for more than that the providers have the tools they enforcement action where appropriate. 100,000 domestic retail subscriber lines. need to complete and file the form in Others urge us to adopt a longer or In addition, the retention obligation the least burdensome manner possible. shorter retention period. applies only to call attempts to Because the reporting requirements are 62. A six-month retention period is incumbent LECs that are rural telephone an information collection, no reports consistent with our decision to require companies, which reduces the burden will be required until the collection has quarterly reporting to the Commission. on covered providers. We therefore find been approved by OMB under the If we were to adopt a shorter retention that imposing a six-month retention Paperwork Reduction Act. The effective period, such as the three months period is not unduly burdensome, date of the information collections in suggested by some commenters, the relative to the significant harm of call these rules will be announced in the records underlying the first month completion problems and the expected Federal Register, and covered providers reflected in the report might have been benefits of retaining the data and having must begin recording the data included purged before the Commission had a access to the data underlying the in the reports they file with the reasonable opportunity to review the periodic reports. Commission on the first day of the quarterly report. Alternatively, if the calendar month that is at least 20 days 4. Reporting Requirements Commission adopted a shorter retention after the effective date. period, it likely would need to require 65. We require covered providers to 67. Originating long-distance voice more frequent reporting to provide time submit a certified report to the service providers that do not make the to review reports before covered Commission once per calendar quarter initial long-distance call path decision providers purged call records that includes for each full month in that for more than 100,000 domestic retail summarized in the report. This quarter: (1) For each rural OCN, the subscriber lines are not required to increased reporting frequency, in turn, OCN, the state, the total number of comply with these recording and would increase the burden on covered attempted interstate calls, the number of reporting requirements. Rather, the providers. Thus we conclude that a six- attempted interstate calls that were entity or entities that make the initial month retention period (and quarterly answered, and the number of attempted long-distance call path decision for calls reporting requirements) strikes the interstate calls that were not answered, from those providers’ end-user appropriate balance between the benefit reported separately for call attempts customers must record and report data of better ensuring satisfactory levels of signaled as busy, ring no answer, or for those calls. To address rural call call completion to rural areas and any unassigned number; (2) the same completion problems, it is important to associated burdens on covered information described in (1), but for ensure that call attempts from all providers. intrastate calls; (3) the same information originating long-distance providers that 63. Some commenters argue that the regarding attempted interstate calls have more than 100,000 domestic retail proposed six-month retention period is described in (1), but for nonrural OCNs subscriber lines but do not make the too burdensome, both in terms of up- in the aggregate; and (4) the same initial long-distance call path choice are front software and hardware costs information regarding attempted accounted for in the reports we receive. required to develop the capability to intrastate calls described in (2), but for Accordingly, we require all originating retain this volume of data in a readily nonrural OCNs in the aggregate. Using long-distance voice service providers retrievable form, and in terms of these data, we will calculate the that have more than 100,000 domestic ongoing personnel and systems costs percentage of calls answered (the call retail subscriber lines but that, for associated with administering a data answer rate) and the percentage of calls reasons set forth in this paragraph, are retention program. These commenters completed to the terminating provider not required to file quarterly reports to characterize these up-front and ongoing regardless of whether answered or file a one-time letter in WC Docket No. costs as exceeding any benefits unanswered by the user (the network 13–39 explaining that they do not make associated with a six-month retention effectiveness ratio). We will also the initial long-distance call path choice period. As other commenters point out, calculate the totals and values for the for more than 100,000 long-distance however, covered providers already rural OCNs in the aggregate. The voice service subscriber lines and collect, in the ordinary course of categories of call attempts and what identifying the long-distance provider or business, much if not all of the call data constitutes a call attempt are addressed providers to which they hand off their to be retained. above in section III.A.3. As proposed in end-user customers’ calls. This letter 64. We disagree with those the NPRM, the reports will be submitted must be submitted to the Commission commenters who contend that the in electronic form using a template by the date on which recording and development, storage, and personnel specified by the Commission. retention is required to begin, and a costs associated with the six-month 66. In Appendix C, attached to the copy must be submitted simultaneously retention period are too burdensome Report and Order, we provide a to each provider identified in the letter relative to any benefits resulting from template of the mandatory report in the as having reporting responsibility. the data retained. A number of form of an electronic spreadsheet that potentially covered providers appear to will be filed with the Commission each 5. Call Answer Rate and Related already have in place the capability of quarter. As noted above, covered Information complying with these rules. We also providers must include autodialer traffic 68. The NPRM proposed to require note that Sprint’s unsubstantiated in their reports, but they may submit that providers report the call answer

VerDate Mar<15>2010 15:00 Dec 16, 2013 Jkt 232001 PO 00000 Frm 00033 Fmt 4700 Sfmt 4700 E:\FR\FM\17DER1.SGM 17DER1 wreier-aviles on DSK5TPTVN1PROD with RULES 76228 Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Rules and Regulations

rate for each rural OCN, for all rural calls in calculating the NER, it may be machine.’’ One commenter recommends OCNs in the aggregate, and for nonrural superior to the call answer rate. Some that we expand the definition of OCNs in the aggregate, and report the commenters go further to propose that ‘‘answered call’’ to mean ‘‘a call that call answer rates separately for we require providers to report only the was answered by or on behalf of the interstate and intrastate calls. After NER, instead of the call answer rate. called party (including calls completed reviewing the record, we require Other commenters disagree and assert to devices, services or parties that covered providers to report data that that the Commission should not require answer the call such as an interactive will allow the Commission to calculate covered providers to report the voice response, answering service, the call answer rate, rather than additional call data that has been voicemail or call-forwarding system or requiring them to report the call answer suggested because it would be too any such system that cause the network rate itself. We also require covered burdensome and potentially inaccurate. to register that the terminating party has providers to report data regarding 71. After reviewing the record, we gone off hook).’’ We adopt this unanswered calls. Specifically, we agree with commenters that we should recommendation, with some require covered providers to report, for require providers to report information modification, because we conclude it is each rural OCN and for nonrural OCNs beyond the call answer rate. As noted more comprehensive. Thus the term in the aggregate but separated by above, we require providers to retain ‘‘answered call’’ means a call that was interstate and intrastate call attempts: certain cause code information from answered by or on behalf of the called (a) The total number of call attempts; (b) which providers and the Commission party (including calls completed to the number of answered calls; (c) the can calculate the NER as well as certain devices, services or parties that answer number of call attempts that result in specific percentages regarding the call such as an interactive voice ‘‘busy’’ code; (d) the number of call unanswered calls, such as the percent of response, answering service, voicemail attempts that result in a ‘‘ring no call attempts that resulted in a busy or call-forwarding system), causing the answer’’ code; and (e) the number of call signal. While we agree that additional network to register that the terminating attempts for which the called number data will be useful in identifying the party is prepared to receive information was reported to be unassigned. causes of rural call completion from the calling user. Collecting these data points problems, we do not agree with a. Reporting by Operating Company individually will enable the commenters who suggest that we should Number Commission to calculate—for each rural require reporting of the NER in lieu of OCN, for all rural OCNs in the aggregate, the call answer rate. First, the call 73. We require each covered provider and for nonrural OCNs in the answer rate is the data point least to report monthly information for each aggregate—both the call answer rate and susceptible to variations in data rural OCN to which the provider the network effectiveness ratio (NER), reporting or to differences in the quality attempted to deliver calls. As the NPRM and will provide the Commission with or accuracy of signaling: The called explained, it is necessary to measure better insight into the reasons why calls party either answered the call or did not performance at the individual rural are not answered or not reaching their answer the call. The NER, by contrast, incumbent LEC level, as identified by destinations. We emphasize that standing alone and viewed only from OCN, to ensure that poor performance to because the report includes data for the originating provider’s perspective, any individual rural incumbent LEC is both rural and nonrural call attempts, does not similarly validate whether the not masked, as it otherwise would be by covered providers must file reports even call ultimately reached its destination. averaging together calls to all rural if they deliver no calls to rural OCNs. For example, the NER calculation is incumbent LECs, or averaging call data 69. The call answer rate that the dependent on reliable signaling— for rural and nonrural areas. Some NPRM described, which divides the because it treats ‘‘user’’ cause code commenters support reporting the data number of calls answered by the total signals the same as a completed call, for each rural operating company as number of call attempts, is similar to the any incorrect or falsified signals could proposed, and several covered providers answer/seizure ratio (ASR), the mask problems such as looping or state that they can readily satisfy a analogous TDM voice network metric, intentional blocking within the network requirement of reporting for each rural which is often ‘‘used as a means of while maintaining a high NER. For operating company. As noted above, the identifying possible changes in instance, busy signals are sometimes Commission proposed a list of rural performance of a service.’’ Using these injected by intermediate providers, OCNs, to be maintained by NECA, for data, we can calculate call answer rates, rather than handing back the call when which call completion performance and thus the data are a valuable metric they cannot find a route. Accordingly, must be recorded, retained, and in assisting the Commission in we require covered providers to report reported, and it sought comment on the comparing performance across data that will allow us to calculate the completeness of the list and its providers to uncover the source of rural NER in addition to the call answer rate. suitability for use upon adoption of the call completion problems. Indeed, the In Appendix C, attached to the Report rules proposed in the NPRM. We call answer rate is a reasonably reliable and Order, we provide a specific received no comment opposing the use measure because, for many users, the template that covered providers will use of this list or arguing that it was answer signaling message generates a in reporting their data, which will overinclusive or underinclusive in any billing record. capture the information described above way, and we believe that the proposed 70. Several commenters urge the while accommodating differences in the list will provide the Commission with Commission to require covered specific cause codes or other data that the data we need to achieve the providers to report the NER in addition providers may have, to give them objectives identified in this Order. to the call answer rate. One commenter flexibility to report such data based on Therefore, we conclude that covered notes that call answer rates may differ their own network configurations. providers must use the rural OCN list as based on local adoption rates of voice- 72. ‘‘Answered call.’’ The NPRM proposed in the List of Rural OCNs mail service, answering machines, and defined the term ‘‘answered call’’ to Public Notice. To further improve fax machines and observes that because mean ‘‘a call that is answered by the administration of the recording and ‘‘ring no-answer’’ and ‘‘end user busy’’ called party, including by voicemail reporting process, the Wireline calls are treated the same as answered service, facsimile machine or answering Competition Bureau will release a

VerDate Mar<15>2010 15:00 Dec 16, 2013 Jkt 232001 PO 00000 Frm 00034 Fmt 4700 Sfmt 4700 E:\FR\FM\17DER1.SGM 17DER1 wreier-aviles on DSK5TPTVN1PROD with RULES Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Rules and Regulations 76229

public notice shortly after release of this increase the threshold to as many as routing failures might be such that Order providing a list, also compiled 1,000 attempts per month to limit the measurement data analyzed monthly and maintained by NECA, of OCNs number of OCNs being reported, and masks problems that, for example, a associated with incumbent LECs that are others proposed substantially reducing weekly measurement period would not rural telephone companies; covered the threshold, including removing the better capture. providers must use this list to compile threshold completely. 81. Comments vary widely on the the data for nonrural call attempts that 77. We agree with the commenters approach to take. One carrier states that must be recorded and reported to the who recommend that we eliminate the it can gain significant insight from a Commission under these rules. Once the minimum calls per month threshold for one-day snapshot while another information collections in the Order reporting by rural OCN. As some recommends that the measurement become effective, we direct NECA to commenters observe, all attempts have period should be the whole quarter. update the lists of rural and nonrural to be counted by OCN before a provider Other commenters propose collecting OCNs annually and provide them to the can then exclude those below a data over a three-day period each month Wireline Competition Bureau in time for threshold from the submitted report and or a peak-period measurement during the Bureau to publish the lists no later it is less burdensome to simply report one sample week each month. One than November 15. For purposes of complete results for all OCN results commenter asserts that a weekly complying with the recording and than it is to take the additional step of measurement period would be more reporting rules adopted herein, those applying a threshold before doing so. In likely to capture intermittent problems. lists will define the rural OCNs and addition to being less burdensome on Other commenters accept the month- nonrural OCNs at issue for the following covered providers, this adjustment will long measurement period and some calendar year. permit the Commission to more reliably oppose reducing the reporting interval 74. Other commenters support the study data aggregated across all to less than a calendar month. Two proposed reporting while suggesting providers for an individual OCN. The commenters state that they are that additional data should also be Commission will weigh the statistical comfortable with using a monthly reported. We find that the data that will significance of the data on OCNs with measurement period initially, while be reported under this Order should be small numbers of call attempts per noting that the Commission could sufficient to enable the Commission to month that it will likely receive from reduce the period in the future if one analyze and address rural call covered providers in their individual month proves inadequate. completion problems, and thus we do reports. 82. We adopt the proposed monthly not expect the benefits of reporting the measurement interval. As we develop c. Reporting for Peak Periods Only proposed additional data to outweigh experience, we may reconsider this the burdens of doing so. 78. The NPRM asked whether reports decision. At present, the record 75. Some commenters indicate that should cover all call attempts or just indicates that monthly measurements they do not categorize calls by those attempted in some peak period, are reasonably calculated to provide a terminating OCN and that to do so such as between noon and 6:00 p.m. reasonable snapshot of performance. We would be burdensome. We are not Eastern time. Commenters generally again note that for problem convinced that the requirement is opposed limiting call attempts to those identification and analysis purposes, unreasonable or overly burdensome. To made during a peak period. The Rural providers can extract data for smaller make the routing selection for a call, a Associations observe that ‘‘[l]imiting time spans, such as weekly figures, from provider typically begins with the same reporting to peak hours suggests call the complete set of data they collect. level of identification of the called failures are attributable solely to e. Timing and Frequency of Reports number. As we have noted, several network congestion.’’ originating providers already categorize 79. We conclude that we will obtain 83. We proposed in the NPRM that calls by OCN in order to analyze their the most informative data by collecting reports be filed quarterly with the performance to rural areas. Indeed, data on all call attempts, rather than Commission and asked on what dates these data seem essential to providers attempts during a peak period. While they should be filed. Several for distinguishing rural and nonrural we recognize that a disproportionate commenters support reporting no more calls and performance, the very problem percentage of call failures may be frequently than quarterly if reporting we seek to address through this attributable to intermediate providers rules are adopted. Other commenters proceeding. We understand that there whose facilities are poorly engineered or recommend that call attempt data be are several commercial reference inadequately sized for loads occurring reported monthly in the interest of databases available for identifying the during peak hours, there is little support timely reporting of problems. Another OCNs for all domestic telephone in the record for limiting reporting to commenter concerned about the numbers. We thus find that any burden peak periods and strong support for timeliness of reporting recommends that to these covered providers is requiring reporting that covers all call covered providers submit three outweighed by the importance of this attempts. To the extent that a covered ‘‘rolling’’ months of data once a month. information to meeting our statutory provider requires data on peak periods 84. Some parties raise concern that obligations. data to analyze call completion reporting more frequently than quarterly problems, the provider can extract that would be unduly burdensome. To b. Reporting for OCNs With 100 information from the data it collects on minimize the burden while providing Attempts or More all calls. the Commission with sufficient 76. The NPRM proposed that covered information, we adopt a quarterly long-distance providers be required to d. Reporting Monthly Measurements reporting interval. Concerning when the report the call answer rate for those 80. The NPRM proposed that the call reports should be filed, we agree with rural OCNs to which 100 or more calls answer rates for rural OCNs be commenters that assert that once were attempted during the month, and calculated over a month-long period, reporting systems and procedures are also the call attempt and answer data on asked if a different measurement period deployed, they should be able to which the calculation is based. Some would be more appropriate, and asked produce the quarterly electronic commenters have proposed that we whether the nature of chronic call spreadsheet submission before the end

VerDate Mar<15>2010 15:00 Dec 16, 2013 Jkt 232001 PO 00000 Frm 00035 Fmt 4700 Sfmt 4700 E:\FR\FM\17DER1.SGM 17DER1 wreier-aviles on DSK5TPTVN1PROD with RULES 76230 Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Rules and Regulations

of the following calendar month. intermediate provider permits the intermediate providers in a call path Therefore, we conclude that quarterly covered provider to reveal the identity will provide better performance. reports will be due on February 1 of the directly connected intermediate 89. We do, however, modify the (reflecting monthly data from October provider and any additional proposed safe harbor by requiring the through December), May 1 (reflecting intermediate provider to the same reporting for a period of one year monthly data from January through Commission and to the rural carrier(s) as for providers not invoking the safe March), August 1 (reflecting monthly whose incoming long-distance calls are harbor and requiring the same recording data from April through June), and affected by intermediate provider requirements, but limit the retention November 1 (reflecting monthly data performance. Finally, the provider must period to three full calendar months from July through September) of each certify that if it uses intermediate rather than six. One year of reporting year. providers, it has a process in place to will provide the Commission with data monitor the performance of its on completion rates from safe-harbor 6. Safe Harbors intermediate providers. Providers may qualifiers to ensure that such providers 85. The NPRM proposed two safe utilize the safe harbor by filing a are achieving satisfactory rural call harbors by which providers could certification on any of the four quarterly completion performance. Furthermore, reduce their obligations under the data filing dates throughout the year (and the recording requirements ensure that reporting and retention obligations. The filings are due annually thereafter). the providers have the data available first safe harbor was described as the Thus, a provider does not need to wait should there be a need to initiate ‘‘Managing Intermediate Provider Safe until the next annual certification to investigation. And, we believe that, Harbor.’’ Under this safe harbor, as take advantage of the safe harbor. At the absent any retention requirements, proposed, a provider could have no same time, a provider must comply with providers may have an incentive to more than two intermediate providers in our full data retention and reporting purge data quickly to avoid having a given call path before the call reaches obligations for any quarter in which it relevant information for any possible the terminating provider. The second no longer qualifies for the safe harbor investigation. safe harbor, described as the (i.e., its business practices cease to 90. Even so, we reduce the burden by ‘‘Monitoring Performance Safe Harbor,’’ comply with the terms of its limiting reporting to one year and would provide some relief from the certification). retention to three months of data for proposed rules to providers meeting 87. Several commenters oppose this several reasons. First, we want to certain performance standards. We safe harbor, expressing skepticism about encourage providers to take advantage adopt the Managing Intermediate its efficacy in preventing rural call of the safe harbor and expect fewer rural Provider Safe Harbor in part, and to completion problems. NARUC and the call completion issues, if any, to arise create incentives for providers to rural associations describe the safe regarding providers that qualify for the improve their rural call completion harbor as premature until it can be safe harbor. Several providers performance immediately, we provide a validated by a history of reporting. We encouraged the Commission to adopt a means for providers that have taken disagree. Our experience in three-month retention period to reduce significant steps and adopted measures investigating and resolving rural call the burden. Second, the Enforcement to ensure calls to rural areas are being completion complaints suggests that Bureau is already able to require completed, such as adoption of industry problems with routing calls to rural providers to retain these records for a best practices, to seek a waiver of these areas typically arise where more than longer period of time and may revoke a data-related obligations. We do not two intermediate providers are involved provider’s use of this safe harbor if that adopt the Monitoring Performance Safe in transmitting a call. An originating provider fails to comply with the safe Harbor. provider that limits the intermediate harbor requirements. Third, because we 86. Managing Intermediate Provider providers in the call path to two is expect rural call completion to be less Safe Harbor. We adopt the Managing better able to manage performance to of a problem for safe-harbor qualifiers, Intermediate Provider Safe Harbor in rural destinations than an originating our concern that six months of record part, to reduce a qualifying provider’s provider that sends calls through retention is necessary to ensure that the reporting obligations and reduce the numerous intermediate providers, the first month of data reflected in any data retention obligations from six identities of which the originating report has not been purged before the months to three months. Qualifying provider may not even know. We agree Commission has had a reasonable covered providers must comply with the that ‘‘[l]imiting the number of opportunity to review the quarterly reporting requirements for one year and intermediate providers that may handle report is mitigated here. must retain the call detail records a call limits the potential for lengthy 91. Some commenters seek described above in a readily retrievable call setup delays and looping.’’ clarification on whether, if a provider form for only three calendar months, but 88. Moreover, our examination of other than the terminating rural ILEC must have three full months of data carrier practices during enforcement operates the terminating tandem switch, available at all times. To qualify, a proceedings and when responding to that provider counts as an intermediate provider must certify on an annual basis complaints has revealed that the provider for purposes of eligibility for either that it uses no intermediate proliferation of rural call completion this safe harbor. We clarify that it does providers, or that all of its contracts problems in recent years has coincided not. Our experience in investigating with directly connected intermediate with the proliferation of intermediate rural call completion complaints providers allow those intermediate providers, the use of which appears to indicates that when a call does reach the providers to pass a call to no more than contribute to call completion problems terminating tandem, regardless of one additional intermediate provider and often results in nearly untraceable ownership, it is completed by the rural (that is, a total of no more than two call routes. This situation has arisen ILEC with a very high degree of intermediate providers in the call path) after decades of uncontroversial, well- reliability. Accordingly, if a provider before the call reaches the terminating functioning use of intermediate merely operates a terminating tandem provider or terminating tandem. The providers for least-cost routing. This that delivers traffic to a rural ILEC, provider must further certify that any suggests that a provider that has a delivering traffic to the terminating nondisclosure agreement with an manageable network with few tandem operated by that provider does

VerDate Mar<15>2010 15:00 Dec 16, 2013 Jkt 232001 PO 00000 Frm 00036 Fmt 4700 Sfmt 4700 E:\FR\FM\17DER1.SGM 17DER1 wreier-aviles on DSK5TPTVN1PROD with RULES Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Rules and Regulations 76231

not count as using an additional A service provider that loses safe harbor 97. By adopting this waiver process, intermediate provider for purposes of protection in this manner may seek we hope to encourage providers to this safe harbor. reconsideration or review of the adopt practices and processes to prevent 92. One commenter seeks clarification Bureau’s decision in accordance with rural call completion problems from concerning the categorization of an the Commission’s rules. While we occurring in the first place, thus intermediate provider that operates a anticipate that the need to revoke a benefitting rural consumers and comprehensive network of provider’s use of the safe harbor will not avoiding the need for enforcement. organizationally separate affiliates. We occur often, we must remain prepared to Providers are free to file such waiver agree that an intermediate provider at assess and address rural call completion requests before the Commission receives either the first or second level includes issues involving providers that use the OMB approval for the data retention and all of the intermediate provider’s safe harbor. reporting obligations. We also encourage affiliates. 95. Waivers of Data Collection and the Bureau to act upon such requests on 93. Finally, the NPRM proposed that Retention Requirements. Although the an expedited basis. originating providers maintain a self- safe harbor encourages providers to take 98. Monitoring Performance Safe certified monitoring process to qualify steps to reduce the rural call completion Harbor. The NPRM proposed a second for this safe harbor. Many commenters problem, we note that the industry safe harbor that would subject a indicate that they monitor the through the ATIS Handbook and other provider to a reduced call completion performance of their first-level means has identified other significant data retention obligation and relieve the intermediate providers using a variety of steps providers can take to ensure calls provider of all reporting obligations if key performance measures including to rural areas are completed. We seek the provider certified that it had met the but not limited to overall answer-seizure comment in the FNPRM about imposing following performance standards. The ratio (ASR), network effectiveness ratio additional requirements to take average call answer rate for all rural (NER), and post-dial delay. One advantage of the safe harbor in the carriers (i.e., not weighted by call interexchange carrier requested future. While the FNPRM is pending, volume) to which the provider additional guidance. Because we want we adopt a waiver process to enable attempted more than 100 calls in a to encourage providers covered by the providers that have taken steps in month could be no more than 2 percent safe harbor to analyze their own addition to satisfying the requirements less than the average call answer rate for performance and that of any for the Managing Intermediate Provider all calls it placed to nonrural carriers in intermediate providers, we do not Safe Harbor to ensure calls to rural areas the same month. Additionally, the call require qualifying providers to use any are being completed to receive a waiver answer rates for 95 percent of those particular process. Instead, we require of the data retention obligations. rural carriers to which the provider that they describe the process they use 96. To encourage providers to take attempted more than 100 calls could be to monitor their intermediate providers immediate and decisive action to no more than 3 percent below the in their annual filings certifying redress rural call completion problems, average rural call answer rate. compliance with the safe harbor. we will consider requests for waiver of 99. Some commenters objected to the 94. We note that this safe harbor the specific reporting and data retention suggestion implicit in this safe harbor decreases reporting and data retention rules as described herein. We delegate that a small differential between rural obligations for a covered provider, but is to the Wireline Competition Bureau, in and nonrural average call answer rates not a safe harbor from the Commission’s consultation with the Enforcement is acceptable. Other commenters normal investigatory processes. For Bureau, the authority to act on such suggested that the proposed differential example, the Commission will continue waiver requests. In evaluating a (no more than 2 percent) may be too to serve rural call completion provider’s waiver request, the Bureau small to be of practical or statistical complaints from consumers and rural should consider not only whether a significance. One large carrier notes that carriers on service providers that invoke provider has demonstrated that it the requirement that 95 percent of all the safe harbor. Furthermore, we qualifies for the Managing Intermediate rural sites be no more than 3 percent delegate authority to the Enforcement Provider Safe Harbor, but also whether below the average rural call answer rate Bureau to revoke a provider’s use of the it persuasively demonstrates that it has presupposes an abnormally narrow safe harbor if the Bureau finds that the processes in place to ensure that call distribution and suggests the provider is not in compliance with the attempts to rural incumbent LECs Commission needs to do analysis to safe harbor requirements. At any time, successfully reach their destinations, establish permissible variance. the Bureau may request copies of the such as by adopting industry best 100. After reviewing the record, we provider’s contracts or agreements with practices. The Bureau should also decline to adopt the Monitoring intermediate providers as well as other consider whether the provider has Performance Safe Harbor at this time. evidence regarding the covered demonstrated that it has capabilities and We agree with commenters that we provider’s processes for monitoring the processes to monitor its own should not adopt a performance-based performance of its intermediate performance by the OCN of the called safe harbor before we receive any call providers. If the Bureau determines that party’s ILEC (rather than just at an completion data from providers. evidence warrants revocation of the aggregate level). The Bureau shall provider’s safe harbor protection, the require, as a condition of a waiver, that 7. Duration of Rules Bureau shall notify the service provider a provider report information about 101. In the NPRM, the Commission of such revocation by letter. The rural call completion for a one-year sought comment on whether any provider’s safe harbor protection shall period, and such a report may be based recording and reporting requirements terminate 30 days after the revocation on a statistically valid sample of calls. adopted in this proceeding should letter is mailed. Accordingly, any In addition, the Bureau may require, as expire at the end of the intercarrier provider taking advantage of the safe a condition of a waiver, that a provider compensation transition to bill-and- harbor should be prepared to begin collect and retain some data, such as keep or some other point. As discussed complying with the additional data data reflecting a statistically valid more fully above, the USF/ICC retention requirements and the sample of calls to rural and non-rural Transformation Order adopted rules reporting requirements within 30 days. areas. that should address the root causes of

VerDate Mar<15>2010 15:00 Dec 16, 2013 Jkt 232001 PO 00000 Frm 00037 Fmt 4700 Sfmt 4700 E:\FR\FM\17DER1.SGM 17DER1 wreier-aviles on DSK5TPTVN1PROD with RULES 76232 Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Rules and Regulations

many rural call completion problems. In is unclear, stating that ‘‘because VoIP today remain in the public interest particular, the Commission adopted a providers are applying less rigorous call going forward. bill-and-keep methodology for all completion standards than the rest of 8. Voluntary Reporting by Rural intercarrier traffic, and adopted a the PSTN, then there will continue to be Incumbent Local Exchange Carriers transition plan to gradually reduce most a need for the rules adopted in this termination charges, which, at the end proceeding regardless of the level of 107. One commenter proposes that of the transition, should eliminate the terminating rates.’’ terminating rural incumbent LECs file financial incentive that appears to be 104. Based on the record before us, we quarterly reports documenting the contributing significantly to rural call decline at this time to adopt a sunset number of incoming long-distance call completion problems. date for the rules we adopt today. We attempts received and the number 102. Many carriers comment that the believe that these rules will provide answered on their network. We agree rules should expire before the transition relief to rural consumers who are that a terminating rural ILEC’s call to bill-and-keep is complete. They argue receiving inferior telephone service. The answer rate for incoming calls would be that ‘‘systemic problems with rural call Commission must also ensure that it has an important benchmark that could be completion resulting from the current the data necessary to adopt a long-term responsive to speculation about local access regime should disappear as the solution regarding the disparity in call rural user behavior and local rural incentives to avoid high, rural completion rates between rural and service distinctions, both among terminating rates decrease,’’ thus the nonrural areas. While the bill-and-keep individual rural ILECs and between Commission should sunset the rules in transition should, to a large extent, rural and nonrural terminating ILECs this order prior to the completion of a eliminate the financial incentive generally. It would also be an important transition to bill-and-keep. Commenters structure that contributes to rural call benchmark against which to evaluate propose that targeted enforcement, completion problems, we agree with the number of call attempts that covered scheduled reviews of the continuing commenters that rural call completion providers report as having reached a need for these rules, or hard expiration problems may not be solely attributable rural ILEC’s terminating switch or deadlines will provide ‘‘more than to terminating charges. tandem, and the number that covered sufficient time to determine whether a 105. Although we decline to adopt a providers report as having been call completion issue exists in particular specific sunset date, we anticipate that answered. rural destinations or with particular our need for these rules will decrease, 108. We think that it is in the intermediate carriers.’’ particularly as the transition to a bill- terminating rural ILECs’ own interest to 103. Other commenters urge the and-keep regime continues. To assist report this information on a voluntary Commission to refrain from setting an with that examination, we direct the basis. We therefore encourage, but do expiration date until these rules are Wireline Competition Bureau to analyze not require, rural ILECs to report clearly unnecessary. Many commenters the eight sets of reports submitted quarterly on the number of incoming suggest that terminating access charges during the first two years of the data long-distance call attempts received, the and reciprocal compensation are not the collection’s effectiveness (as well as any number answered on its network, and only incentives for certain originating other information the Commission the call answer rate calculation for each and intermediate carriers to avoid receives during that period regarding of the previous three months, by the completing calls to rural customers. For the causes of and solution to rural call reporting dates for covered providers. In example, there may be unique completion) and to publish for public the FNPRM we seek comment on incentives for carriers to not complete comment a report on the effectiveness of whether we should mandate reporting calls in rural versus nonrural areas, the rules, whether data collection and by rural ILECs. because many of the calls to rural LEC reporting should be reduced or 9. Disclosure of Reported Data exchanges ‘‘must be carried over lengthy eliminated for certain providers or transport and transit routes operated by classes of providers (including those 109. The NPRM sought comment on third parties, to whom compensation that meet a performance-based standard whether the information that will be must be paid by toll service providers,’’ over four consecutive quarters), whether provided pursuant to the reporting and that ‘‘[i]n the highly competitive, the Commission should extend data requirements should be treated as low-margin long-distance toll service collection and reporting requirements to confidential or be open to public market, LCR providers will still be certain intermediate providers, and how inspection. After reviewing the record, tempted to reduce their transit/transport the Commission can incorporate we conclude that covered providers costs by taking networking shortcuts or industry best practices, such as those filing these reports may request blocking calls to such RLEC service developed through ATIS, into its work. confidential treatment of all or portions areas even after [many intercarrier The Bureau shall publish that report no of the data they submit without filing compensation] charges go to bill-and- more than 90 days after the last reports the detailed confidentiality justification keep.’’ Further, as one commenter are due for that two-year period. required by section 0.459 of our rules. suggests, ‘‘[w]ith the sunset of the rules, 106. Furthermore, to ensure that the If the Commission receives a request for, any short term solutions could unravel data collection and reporting rules we or proposes disclosure of, the the progress made, because the factors adopt today do not last without review information contained in the report, the not directly linked to the ICC reform in perpetuity, the Commission shall provider will be notified and required to transition could trigger a relapse in the complete a proceeding in which we make the full showing under section performance by the industry in reevaluate whether to keep, eliminate, 0.459 as to why confidentiality is completing calls to rural customers.’’ or amend the data collection and warranted. Taking into consideration Other commenters note that while reporting rules three years after they that covered providers must submit terminating access rates have declined, become effective. That time should be these reports quarterly, as well as the the number of call completion problems sufficient for the Commission and the unique and relatively homogenous to rural areas have actually increased. public to review the data collected nature of this data collection, these Some comments suggest that any rules herein, as well as the report of the streamlined procedures for requesting should not expire because the impact of Wireline Competition Bureau, and nondisclosure should greatly improve VoIP providers on rural call completion determine whether the rules adopted the ability of providers to request

VerDate Mar<15>2010 15:00 Dec 16, 2013 Jkt 232001 PO 00000 Frm 00038 Fmt 4700 Sfmt 4700 E:\FR\FM\17DER1.SGM 17DER1 wreier-aviles on DSK5TPTVN1PROD with RULES Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Rules and Regulations 76233

confidential treatment of their data in a failure, instead of the originating or extended silence after the call is placed. timely manner while minimizing the intermediate provider. Once an This could lead to confusion and burden of doing so. The Commission intermediate provider provides a ringing increased hang-ups by the calling party, will release information to states upon indication to an originating provider which would increase (rather than request, if those states are able to while still processing the call, the call reduce) the incidence of call completion maintain the confidentiality of this cannot be handed back to the preceding problems.’’ By contrast, another information. The Commission imposes provider for an alternate route. commenter responds that Vonage’s similar confidentiality requirements on 112. In the NPRM, the Commission argument ‘‘is tantamount to an argument state commissions seeking to gain access proposed to mandate that audible that phone users are properly deceived to broadband subscription data filed ringing be provided to callers only after into thinking that the called party’s pursuant to our Form 477. The the terminating provider affirmatively phone is ringing when in fact it is not. Commission also expects to make signals that the called line is free and Deception is not sound public policy.’’ aggregated data available to states and the called party is being alerted. The 114. We find many benefits to the public. record overwhelming supports the adopting the proposed rule prohibiting 110. We recognize that there may be adoption of the proposed rule. False false ring signaling, as set forth in the benefits to providing public access to audible ringing departs from NPRM. We find that this rule will the information in these reports. Some longstanding and well-established benefit both consumers and industry commenters argue that the public and/ telephony signaling practices. Indeed, and avoid unnecessary confusion that or other entities should have access to many commenters urge the Commission may occur today about whether the call this information because this would to simply codify the industry standard was actually delivered to the called provide an incentive to correct call prohibiting false audible ringing, stating party. Consumer expectation is simple: completion problems, would be that ‘‘numerous industry signaling if a calling party hears audible ringing, effective in deterring and resolving call standards and definitions . . . the calling party believes the called blocking, and would provide valuable unambiguously establish that an audible party’s phone is ringing or otherwise data for rural LECs to identify the cause ringing indication should be provided to being alerted in the same timeframe. As of uncompleted calls. We further the caller only after the terminating a result of this rule, consumers will no recognize that information submitted provider signals that the called line is longer prematurely hang up when the may be confidential. Some commenters free and the called party is being call has not even rung on the caller’s assert that the reports should not be alerted.’’ Some commenters support side, nor will consumers mistakenly publicly disclosed because they could prohibiting false audible ringing broadly believe that the terminating rural result in public misperception of the across the industry, stating that our provider is responsible for the call nature of the call completion problem, prohibition ‘‘should be applied across failure. Industry will benefit from this could result in the misuse of all providers that allow end users to rule because intermediate providers will information taken out of context, and make voice calls regardless of license, now hand back calls that have excessive may prove difficult to compare fairly function, or authority,’’ because such a set-up time to the preceding provider to across providers due to potentially practice ‘‘is not likely to harm just find an alternate route, so that the call differing abilities of providers, for consumers in rural areas; the harm can ultimately be completed. example, to identify autodialer traffic or could just as well fall on customers in Originating providers will be able to account for call attempts that are nonrural areas, in the absence of an better identify (and compare) handed back to be retried using a industry-wide rule.’’ Because the intermediate providers with patterns of different intermediate provider. For proposed rule simply codifies long- service failures and, if they choose, elect now, we find that the approach we standing industry practice, the majority other intermediate providers. Because adopt today appropriately balances the of commenters do not believe such a this rule codifies a long-standing filers’ disclosure concerns with the rule is unduly burdensome. industry standard, it should not be public need for access to this 113. Only two commenters opposed a unduly burdensome. We expect that this information. rule prohibiting false ring signaling. The rule will improve the call completion VON Coalition argues that the adoption rates to rural areas, therefore benefiting B. Rules To Address Ring Signaling of such a rule that could potentially consumers and industry alike. 111. False Audible Ringing. One of thwart enhanced functionalities that 115. Accordingly, we adopt a rule the rural call completion problems that VoIP providers may develop and prohibiting false audible ringing. More parties have identified is ‘‘false audible possibly make these providers ‘‘limit specifically, all originating and ringing.’’ False audible ringing occurs their end user services in order to intermediate providers are prohibited when an originating or intermediate conform to ‘traditional’ call flows would from causing audible ringing to be sent provider prematurely triggers audible be contrary to the Commission’s settled to the caller before the terminating ring tones to the caller before the call deregulatory approach to VoIP.’’ provider has signaled that the called setup request has actually reached the Vonage, on the other hand, argues the party is being alerted. We clarify that terminating rural provider. That is, the real underlying issue ‘‘is not ‘false’ alerting the called party includes calling party believes the phone is ringing per se. Rather, the root issue is alerting devices, services or parties that ringing at the called party’s premises excessive post-dial delay in connecting can answer the call such as an when it is not. An originating or a call to the terminating switch (i.e., interactive voice response, answering intermediate provider may do this to post-dial delay that is sometimes filled service, voicemail or call-forwarding mask the silence that the caller would by ‘false’ ringing) . . . which may system or any such system that can otherwise hear during excessive call simply be used by providers to ensure cause the network to register that the setup time. As a result, the caller may that the calling party does not hang up terminating party has gone off hook. As often hang up, thinking nobody is before the call is answered because the we proposed in the NPRM, originating available to receive the call. False calling party hears a relatively and intermediate providers must also audible ringing can also make it appear prolonged silence.’’ They further argue convey audio tones and announcements to the caller that the terminating rural that ‘‘[p]rohibiting false ringing could sent by the terminating provider to the provider is responsible for the call have unintended consequences such as calling party. We apply this rule

VerDate Mar<15>2010 15:00 Dec 16, 2013 Jkt 232001 PO 00000 Frm 00039 Fmt 4700 Sfmt 4700 E:\FR\FM\17DER1.SGM 17DER1 wreier-aviles on DSK5TPTVN1PROD with RULES 76234 Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Rules and Regulations

prohibiting false audible ringing to all incoming calls or to be alerted for less interstate versus intrastate calls, thus originating providers and intermediate time than the calling parties believes. exacerbating the problems that we have providers, including local exchange The Commission has previously applied seen to date. We conclude, therefore, carriers, interexchange carriers, ring signaling rules to interconnected that we have authority to extend the commercial mobile radio service VoIP service providers, including false audible ringing rule to intrastate (CMRS) providers, interconnected VoIP, intermediate providers in a call path. traffic. and one-way VoIP providers. These For the same reasons that the IV. Procedural Matters rules apply to both interstate and Commission has authority to prohibit intrastate calls, as well as to both intermediate providers from altering the A. Paperwork Reduction Act Analysis originating and terminating calling number, the Commission has 120. This document contains new international calls while they traverse authority to apply the false audible information collections subject to the U.S. networks. ringing rule to intermediate providers. Paperwork Reduction Act of 1995 116. Legal Authority. Our authority The problem would not be adequately (PRA), Public Law 104–13. They will be for prohibiting false audible ringing to addressed without addressing the submitted to the Office of Management all originating and intermediate practices of VoIP service and and Budget (OMB) for review under providers lies in section 201(b) of the intermediate providers. section 3507(d) of the PRA, 44 U.S.C. Act. It is an unreasonable practice to 118. Adopting a prohibition against 3507. Prior to submission to OMB, the send misleading ring sounds to false ring signaling will help the Commission will publish a notice in the customers making long-distance calls, as Commission isolate problems that are Federal Register seeking public it may cause them to believe that the the responsibility of carriers subject to comment on the information called party is not answering when in section 201(b), and help us uncover and collections. In addition, that notice will fact the call has not yet been connected, better understand call completion issues also seek comment on how the or has been connected for a shorter time which could otherwise be obfuscated. If Commission might ‘‘further reduce the than the ring sounds would lead the we did not do so, callers would information collection burden for small calling party to believe. The majority of continue to think that calls were being business concerns with fewer than 25 the comments assert that false audible completed that in fact had never made employees’’ pursuant to the Small ringing contributes to the disparity it to the rural LEC or its customer. Business Paperwork Relief Act of 2002, between rural and nonrural call Likewise, if false ring signaling were not Public Law 107–198, see 44 U.S.C. completion rates. Adopting a rule that prohibited, originating providers and 3506(c)(4). The information collections prohibits false audible ringing therefore some intermediate providers would contained in this Report and Order will aids in the Commission’s efforts to treat calls passed to a downstream not go into effect until OMB approves ensure that provider practices are not intermediate provider as having been the collections and the Commission has unjust or unreasonable. answered when in fact they were not published a notice in the Federal 117. We also apply this rule to being completed. The prevention of Register announcing the effective date interconnected and one-way VoIP such problems by prohibiting all of the information collections. providers that send calls to terminate on originating and intermediate carriers, the PSTN, as well as intermediate interconnected VoIP providers, and one- B. Congressional Review Act providers that are not common carriers, way VoIP providers from transmitting 121. The Commission will send a as ‘‘reasonably ancillary to the effective false audible signaling is therefore copy of this Report and Order and performance of [our] statutorily reasonably ancillary to the effective Further Notice of Proposed Rulemaking mandated responsibilities’’ under performance of our duties in enforcing to Congress and the Government section 201(b). The purpose of the rule section 201(b). Accountability Office pursuant to the is to address the problem of calls failing 119. Finally, we apply this false Congressional Review Act, see 5 U.S.C. to complete to rural PSTN customers. audible ringing rule to all traffic, 801(a)(1)(A). Given the substantial role that VoIP including intrastate traffic. The USF/ICC service connected to the PSTN plays in Transformation Order expanded the V. Final Regulatory Flexibility Analysis the retail long-distance telephone scope of our call signaling rules to 122. As required by the Regulatory market, and the potential for encompass jurisdictionally intrastate Flexibility Act (RFA), an Initial intermediate providers to be non- traffic. Where providers previously were Regulatory Flexibility Analysis (IRFA) carriers, excluding such providers from required to include the Calling Party was incorporated in the Notice of the prohibition against false audible Number (CPN) on interstate calls, the Proposed Rulemaking (NPRM) in WC ringing would undermine the Commission required such information Docket No. 13–39. The Commission effectiveness of the rule, as well as the to be included on intrastate calls as sought written public comment on the Commission’s ability to ensure that well. The Commission noted that CPN- proposals in the NPRM, including carrier practices are both just and based services are jurisdictionally comment on the IRFA. This Final reasonable. Specifically, if VoIP mixed services and it would be Regulatory Flexibility Analysis (FRFA) customers or callers being indirectly impractical and uneconomic to require conforms to the RFA. served by non-carrier intermediate the development and implementation of providers receive misleading ring systems that would permit separate A. Need for, and Objectives of, the sounds, leading them to mistakenly federal and state call signaling rules to Report and Order believe that the called party is not operate. We conclude here, as we did in 123. This Report and Order (Order) answering when in fact the called party the USF/ICC Transformation Order, that continues the Commission’s efforts to has not been alerted, the terminating it would be infeasible to have separate identify the causes of—and potential carrier may be erroneously subject to federal and state rules regarding false remedies for—the ongoing and complaints regarding its perceived audible ringing because, inter alia, there widespread problems with the failure to terminate calls to its would be significant confusion among completion of long-distance telephone customers. Indeed, it is not ‘‘just and consumers and long-distance providers calls to rural areas. In the Order, the reasonable’’ for customers of rural if the presence or absence of a ring Commission adopts rules to address terminating carriers not to be alerted to signal had a different meaning on significant concerns about completion

VerDate Mar<15>2010 15:00 Dec 16, 2013 Jkt 232001 PO 00000 Frm 00040 Fmt 4700 Sfmt 4700 E:\FR\FM\17DER1.SGM 17DER1 wreier-aviles on DSK5TPTVN1PROD with RULES Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Rules and Regulations 76235

of long distance calls to rural areas. call is interstate; whether the call calls completed to the terminating Doing so will help ensure that long attempt was answered; and whether the provider regardless of whether distance calls to all Americans, call attempt was completed to the answered or unanswered by the user including rural Americans, are incumbent local exchange carrier but (the network effectiveness ratio). completed. Completion rates for long- signaled as busy, ring no answer, or Collecting these data points will provide distance calls to rural telephone unassigned number. For most providers, the Commission with better insight into company service areas are frequently this indication is likely to take the form the reasons why calls are not answered poor—whether the call is significantly of an SS7 signaling cause code or SIP or not reaching their destinations. The delayed, the called party’s phone never signaling message code associated with Order defines the term ‘‘answered call’’ rings, the caller hears false busy signals, each call attempt. While covered to mean ‘‘a call that was answered by or or there are other problems. These providers need not retain data for calls on behalf of the called party (including failures have significant and immediate to nonrural OCNs, they must calls completed to devices, services or public interest ramifications, causing nonetheless record such data to the parties that answer the call such as an rural businesses to lose customers, extent that it is necessary to comply interactive voice response, answering cutting families off from their relatives with the reporting obligations described service, voicemail or call-forwarding in rural areas, and creating potential for below. The Order also concludes that system or any such system that cause dangerous delays in public safety the most useful comparison of call the network to register that the communications in rural areas. The completion rates is between rural and terminating party has gone off hook).’’ rules adopted in the Order are a critical nonrural incumbent LECs, and thus The Order requires each covered step to eliminating this significant excludes calls terminating to CLECs, provider to report monthly information problem by improving the CMRS providers, or VoIP services for each rural OCN to which the Commission’s ability to monitor the providers from the recording, retention, provider attempted to deliver calls and delivery of long-distance calls to rural and reporting requirements. The Order decline to adopt a minimum calls per areas, aiding enforcement action in also requires filers to include autodialer month threshold for reporting by rural connection with providers’ call traffic in their recording, retention and OCN. The Order also concludes that the completion practices as necessary, as reporting but allows them file a separate Commission will obtain the most well as by aiding consumers and report that segregates autodialer traffic informative data by collecting data on industry by adopting a rule prohibiting from other traffic, accompanied by an all call attempts, rather than attempts false ring signaling. explanation of the method the used to during a peak period, and adopts a 124. Adopting recording, retention, identify the autodialer traffic. In monthly measurement interval and and reporting requirements will addition, recording, retention, and quarterly reporting interval for covered substantially increase our ability to reporting requirements set forth in the providers. The Order also encourages monitor and redress problems Order apply to call attempts of very rural ILECs to voluntarily report their associated with completing calls to rural short duration, while excluding call own call answer rates by terminating areas. These rules will also enhance our attempts handed back to an upstream rural OCN, which we believe would be ability to enforce restrictions against provider and call attempts to toll-free an important benchmark that could be blocking, choking, reducing, or numbers. The Order requires covered responsive to speculation about local restricting calls. The recording, providers to retain the call detail rural user behavior and local rural retention, and reporting rules should records described above for calls to rural service distinctions both among apply to providers of long-distance OCNs in a readily retrievable form for at individual rural ILECs and between voice service that make the initial long- least six calendar months, except as rural and nonrural terminating ILECs distance call path choice for more than described in the discussion of the safe generally. 100,000 domestic retail subscriber lines, 127. The Order adopts a rule harbor, below. counting the total of all business and prohibiting all originating and residential fixed subscriber lines and 126. The reporting obligations intermediate providers from causing mobile phones and aggregated over all adopted in the Order require covered audible ringing to be sent to the caller of the providers’ affiliates (referred to providers to submit a certified report to before the terminating provider has herein as ‘‘covered providers’’). In most the Commission once per calendar signaled that the called party is being cases, this is the calling party’s long- quarter that includes, for each full alerted, and clarifies that ‘‘alerting the distance provider. As discussed below, month in that quarter: (1) For each rural called party’’ includes alerting devices, covered providers include LECs, OCN, the OCN, the state, the total services or parties that can answer the interexchange carriers (IXCs), number of attempted interstate calls, the call such as an interactive voice commercial mobile radio service number of attempted interstate calls that response, answering service, voicemail (CMRS) providers, and VoIP service were answered, and the number of or call-forwarding system or any such providers. Finally, we do not apply attempted interstate calls that were not system that can cause the network to these rules to intermediate providers. answered, reported separately for call register that the terminating party has 125. The Order requires covered attempts signaled as busy, ring no gone off hook. Originating and providers to record and retain the answer, or unassigned number; (2) the intermediate providers must also following information for each long- same information described in (1), but convey audio tones and announcements distance call to a local exchange carrier for intrastate calls; (3) the same sent by the terminating provider to the that is a rural telephone company: information regarding attempted calling party. The rule prohibiting false Calling party number; called party interstate calls described in (1), but for audible ringing applies to all originating number; date; time of day; whether the nonrural OCNs in the aggregate; and (4) providers and intermediate providers, call is handed off to an intermediate the same information regarding including LECs, IXCs, CMRS providers, provider and, if so, which intermediate attempted intrastate calls described in interconnected VoIP, and one-way VoIP provider; whether the call is going to a (2), but for nonrural OCNs in the providers. rural carrier and, if so, which rural aggregate. These data permit calculation 128. The rules adopted in the Order carrier, as identified by its operating of the percentage of calls answered (the will help the Commission, our state company number (OCN); whether the call answer rate) and the percentage of partners, and the reporting providers

VerDate Mar<15>2010 15:00 Dec 16, 2013 Jkt 232001 PO 00000 Frm 00041 Fmt 4700 Sfmt 4700 E:\FR\FM\17DER1.SGM 17DER1 wreier-aviles on DSK5TPTVN1PROD with RULES 76236 Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Rules and Regulations

monitor call completion performance ‘‘small business’’ has the same meaning small businesses that may be affected by and address problem areas. At the same as the term ‘‘small-business concern’’ rules adopted pursuant to the NPRM. time, we are mindful of the potential under the Small Business Act. A small- 135. We have included small burdens and take actions to minimize business concern’’ is one which: (1) Is incumbent LECs in this present RFA them, particularly on smaller entities. independently owned and operated; (2) analysis. As noted above, a ‘‘small The Order therefore limits the is not dominant in its field of operation; business’’ under the RFA is one that, application of the recording, retention, and (3) satisfies any additional criteria inter alia, meets the pertinent small and reporting requirements to providers established by the SBA. business size standard (e.g., a telephone with more than 100,000 retail 131. Small Businesses. Nationwide, communications business having 1,500 customers. We also target our there are a total of approximately 27.9 or fewer employees), and ‘‘is not regulations to address the source of the million small businesses, according to dominant in its field of operation.’’ The problem. Because the problems appear the SBA. SBA’s Office of Advocacy contends that, to increase significantly when a call is 132. Wired Telecommunications for RFA purposes, small incumbent handed off among multiple providers, Carriers. The SBA has developed a LECs are not dominant in their field of the Order adopts a safe harbor to small business size standard for Wired operation because any such dominance encourage providers to limit the number Telecommunications Carriers, which is not ‘‘national’’ in scope. We have of hand offs. Specifically, providers that consists of all such companies having therefore included small incumbent restrict by contract directly connected 1,500 or fewer employees Census data LECs in this RFA analysis, although we intermediate providers to no more than for 2007 shows that there were 31,996 emphasize that this RFA action has no one additional intermediate provider in establishments that operated that year. effect on Commission analyses and the call path will be relieved of the Of those 31,996, 1,818 operated with determinations in other, non-RFA reporting obligation after one year and more than 100 employees, and 30,178 contexts. 136. Competitive Local Exchange have a reduced record retention period, operated with fewer than 100 Carriers (competitive LECs), although such providers may be employees. Thus, under this size Competitive Access Providers (CAPs), required to comply with those standard, the majority of firms can be Shared-Tenant Service Providers, and requirements at the discretion of the considered small. Other Local Service Providers. Neither Enforcement Bureau. Similarly, covered 133. Local Exchange Carriers (LECs). providers adhering to industry best the Commission nor the SBA has Neither the Commission nor the SBA developed a small business size practices and other measures intended has developed a size standard for small to ensure robust call completion standard specifically for these service businesses specifically applicable to providers. The appropriate size standard performance may apply for a waiver of local exchange services. The closest these recording, retention, and reporting under SBA rules is for the category applicable size standard under SBA requirements. Our regulations are Wired Telecommunications Carriers. rules is for Wired Telecommunications carefully targeted to help address the Under that size standard, such a Carriers. Under that size standard, such problems with completing calls in rural business is small if it has 1,500 or fewer a business is small if it has 1,500 or areas while minimizing the burdens of employees. According to Commission fewer employees. According to compliance for all covered providers, data, 1,442 carriers reported that they Commission data, Census data for 2007 including small entities. We also note were engaged in the provision of either shows that there were 31,996 that the ring signaling integrity competitive local exchange services or establishments that operated that year. requirements adopted in the Order may competitive access provider services. Of Of those 31,996, 1,818 operated with have an economic impact on small these 1,442 carriers, an estimated 1,256 more than 100 employees, and 30,178 entities, but believe that the benefits to have 1,500 or fewer employees and 186 operated with fewer than 100 the functioning of the PSTN and to have more than 1,500 employees. In employees. Consequently, the consumers outweigh any burdens. addition, 17 carriers have reported that Commission estimates that most they are Shared-Tenant Service B. Summary of Significant Issues Raised providers of local exchange service are Providers, and all 17 are estimated to by Public Comments in Response to the small entities that may be affected by have 1,500 or fewer employees. In Supplemental IRFA the rules and policies proposed in the addition, 72 carriers have reported that 129. There were no comments filed NPRM. they are Other Local Service Providers. that specifically addressed the rules and 134. Incumbent Local Exchange Of the 72, seventy have 1,500 or fewer policies proposed in the IRFA. To the Carriers (Incumbent LECs). Neither the employees and two have more than extent we received comments raising Commission nor the SBA has developed 1,500 employees. Consequently, the general small business concerns during a size standard for small businesses Commission estimates that most this proceeding, those comments are specifically applicable to incumbent providers of competitive local exchange discussed throughout the Order. local exchange services. The closest service, competitive access providers, applicable size standard under SBA Shared-Tenant Service Providers, and C. Description and Estimate of the rules is for Wired Telecommunications Other Local Service Providers are small Number of Small Entities to Which the Carriers. Under that size standard, such entities that may be affected by rules Proposed Rules Will Apply a business is small if it has 1,500 or adopted pursuant to the NPRM. 130. The RFA directs agencies to fewer employees. According to 137. Interexchange Carriers (IXCs). provide a description of, and where Commission data, 1,307 carriers Neither the Commission nor the SBA feasible, an estimate of the number of reported that they were incumbent local has developed a size standard for small small entities that may be affected by exchange service providers. Of these businesses specifically applicable to the proposed rules, if adopted. The RFA 1,307 carriers, an estimated 1,006 have interexchange services. The closest generally defines the term ‘‘small 1,500 or fewer employees and 301 have applicable size standard under SBA entity’’ as having the same meaning as more than 1,500 employees. rules is for Wired Telecommunications the terms ‘‘small business,’’ ‘‘small Consequently, the Commission Carriers. Under that size standard, such organization,’’ and ‘‘small governmental estimates that most providers of a business is small if it has 1,500 or jurisdiction.’’ In addition, the term incumbent local exchange service are fewer employees. According to

VerDate Mar<15>2010 15:00 Dec 16, 2013 Jkt 232001 PO 00000 Frm 00042 Fmt 4700 Sfmt 4700 E:\FR\FM\17DER1.SGM 17DER1 wreier-aviles on DSK5TPTVN1PROD with RULES Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Rules and Regulations 76237

Commission data, 359 companies standard for the category of to be small if it has 1,500 or fewer reported that their primary Telecommunications Resellers. Under employees. For this category, census telecommunications service activity was that size standard, such a business is data for 2007 show that there were the provision of interexchange services. small if it has 1,500 or fewer employees. 11,163 establishments that operated for Of these 359 companies, an estimated Census data for 2007 show that 1,523 the entire year. Of this total, 10,791 317 have 1,500 or fewer employees and firms provided resale services during establishments had employment of 999 42 have more than 1,500 employees. that year. Of that number, 1,522 or fewer employees and 372 had Consequently, the Commission operated with fewer than 1000 employment of 1000 employees or estimates that the majority of employees and one operated with more more. Thus, under this category and the interexchange service providers are than 1,000. Thus, under this category associated small business size standard, small entities that may be affected by and the associated small business size the Commission estimates that the rules adopted pursuant to the NPRM. standard, the majority of these prepaid majority of wireless telecommunications 138. Prepaid Calling Card Providers. calling card providers can be considered carriers (except satellite) are small Neither the Commission nor the SBA small entities. According to Commission entities that may be affected by our has developed a small business size data, 881 carriers have reported that proposed action. standard specifically for prepaid calling they are engaged in the provision of toll 143. Similarly, according to card providers. The appropriate size resale services. Of these, an estimated Commission data, 413 carriers reported standard under SBA rules is for the 857 have 1,500 or fewer employees and that they were engaged in the provision category Telecommunications Resellers. 24 have more than 1,500 employees. of wireless telephony, including cellular Under that size standard, such a Consequently, the Commission service, Personal Communications business is small if it has 1,500 or fewer estimates that the majority of toll Service (PCS), and Specialized Mobile employees. Census data for 2007 show resellers are small entities that may be Radio (SMR) Telephony services. Of that 1,523 firms provided resale services affected by rules adopted pursuant to these, an estimated 261 have 1,500 or during that year. Of that number, 1,522 the NPRM. fewer employees and 152 have more operated with fewer than 1000 141. Other Toll Carriers. Neither the than 1,500 employees. Consequently, employees and one operated with more Commission nor the SBA has developed the Commission estimates that than 1,000. Thus, under this category a size standard for small businesses approximately half or more of these and the associated small business size specifically applicable to Other Toll firms can be considered small. Thus, standard, the majority of these prepaid Carriers. This category includes toll using available data, we estimate that calling card providers can be considered carriers that do not fall within the the majority of wireless firms can be small entities. According to Commission categories of interexchange carriers, considered small. data, 193 carriers have reported that operator service providers, prepaid 144. Cable and Other Program they are engaged in the provision of calling card providers, satellite service Distribution. Since 2007, these services prepaid calling cards. Of these, an carriers, or toll resellers. The closest have been defined within the broad estimated all 193 have 1,500 or fewer applicable size standard under SBA economic census category of Wired employees and none have more than rules is for Wired Telecommunications Telecommunications Carriers; that 1,500 employees. Consequently, the Carriers. Under that size standard, such category is defined as follows: ‘‘This Commission estimates that the majority a business is small if it has 1,500 or industry comprises establishments of prepaid calling card providers are fewer employees. Census data for 2007 primarily engaged in operating and/or small entities that may be affected by shows that there were 31,996 providing access to transmission rules adopted pursuant to the NPRM. establishments that operated that year. facilities and infrastructure that they 139. Local Resellers. The SBA has Of those 31,996, 1,818 operated with own and/or lease for the transmission of developed a small business size more than 100 employees, and 30,178 voice, data, text, sound, and video using standard for the category of operated with fewer than 100 wired telecommunications networks. Telecommunications Resellers. Under employees. Thus, under this category Transmission facilities may be based on that size standard, such a business is and the associated small business size a single technology or a combination of small if it has 1,500 or fewer employees. standard, the majority of Other Toll technologies.’’ The SBA has developed Census data for 2007 show that 1,523 Carriers can be considered small. a small business size standard for this firms provided resale services during According to Commission data, 284 category, which is: All such firms that year. Of that number, 1,522 companies reported that their primary having 1,500 or fewer employees. operated with fewer than 1000 telecommunications service activity was Census data for 2007 shows that there employees and one operated with more the provision of other toll carriage. Of were 31,996 establishments that than 1,000. Thus, under this category these, an estimated 279 have 1,500 or operated that year. Of those 31,996, and the associated small business size fewer employees and five have more 1,818 operated with more than 100 standard, the majority of these prepaid than 1,500 employees. Consequently, employees, and 30,178 operated with calling card providers can be considered the Commission estimates that most fewer than 100 employees. Thus, under small entities. According to Commission Other Toll Carriers are small entities this size standard, the majority of firms data, 213 carriers have reported that that may be affected by the rules and offering cable and other program they are engaged in the provision of policies adopted pursuant to the NPRM. distribution services can be considered local resale services. Of these, an 142. Wireless Telecommunications small and may be affected by rules estimated 211 have 1,500 or fewer Carriers (except Satellite). Since 2007, adopted pursuant to the NPRM. employees and two have more than the SBA has recognized wireless firms 145. Cable Companies and Systems. 1,500 employees. Consequently, the within this new, broad, economic The Commission has developed its own Commission estimates that the majority census category. Prior to that time, such small business size standards, for the of local resellers are small entities that firms were within the now-superseded purpose of cable rate regulation. Under may be affected by rules adopted categories of Paging and Cellular and the Commission’s rules, a ‘‘small cable pursuant to the NPRM. Other Wireless Telecommunications. company’’ is one serving 400,000 or 140. Toll Resellers. The SBA has Under the present and prior categories, fewer subscribers, nationwide. Industry developed a small business size the SBA has deemed a wireless business data indicate that, of 1,076 cable

VerDate Mar<15>2010 15:00 Dec 16, 2013 Jkt 232001 PO 00000 Frm 00043 Fmt 4700 Sfmt 4700 E:\FR\FM\17DER1.SGM 17DER1 wreier-aviles on DSK5TPTVN1PROD with RULES 76238 Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Rules and Regulations

operators nationwide, all but eleven are attempted intrastate calls described in 150. The Commission is aware that small under this size standard. In (2), but for nonrural OCNs in the some of the proposals under addition, under the Commission’s rules, aggregate. The Order requires covered consideration will impact small entities a ‘‘small system’’ is a cable system providers to record and retain the by imposing costs and administrative serving 15,000 or fewer subscribers. following information for each long- burdens. For this reason, the Order Industry data indicate that, of 6,635 distance call to a local exchange carrier includes a number of measures to systems nationwide, 5,802 systems have that is a rural telephone company: minimize or eliminate the costs and under 10,000 subscribers, and an Calling party number; called party burdens generated by compliance with additional 302 systems have 10,000– number; date; time of day; whether the the proposed rules. 19,999 subscribers. Thus, under this call is handed off to an intermediate 151. First, the recording, reporting, second size standard, most cable provider and, if so, which intermediate and retention rules adopted in the Order systems are small and may be affected provider; whether the call is going to a apply only to providers of long-distance by rules adopted pursuant to the NPRM. rural carrier and, if so, which rural voice service that make the initial long- 146. All Other Telecommunications. carrier, as identified by its operating distance call path choice for more than The Census Bureau defines this industry company number (OCN); whether the 100,000 domestic retail subscriber lines, as including ‘‘establishments primarily call is interstate; whether the call counting the total of all business and engaged in providing specialized attempt was answered; and whether the residential fixed subscriber lines and telecommunications services, such as call attempt was completed to the mobile phones and aggregated over all satellite tracking, communications incumbent local exchange carrier but of the providers’ affiliates. Accordingly, telemetry, and radar station operation. signaled as busy, ring no answer, or smaller providers are not required to This industry also includes unassigned number. The Commission comply with these rules. establishments primarily engaged in requires covered providers to retain 152. Additionally, the rule requiring providing satellite terminal stations and these records for a period including the retention of call detail records applies associated facilities connected with one six most recent calendar months for call only to call attempts to rural incumbent or more terrestrial systems and capable attempts to rural ILECs; for those call LECs, a relatively small percentage of of transmitting telecommunications to, attempts to nonrural ILECs, the rules do total call attempts; call attempts to and receiving telecommunications from, not require covered providers to retain nonrural incumbent LECs need not be satellite systems. Establishments records for any length of time. retained. This approach should reduce providing Internet services or Voice Compliance with these recordkeeping the burden of compliance for smaller over Internet Protocol (VoIP) services and retention obligations may affect entities by reducing the costs of data via client-supplied telecommunications small entities, and may include new storage that the rule proposed in the NPRM would have required, according connections are also included in this administrative processes. industry.’’ The SBA has developed a to one estimate by as much as 90 148. In the Order, the Commission small business size standard for this percent. The Order also permits category; that size standard is $30.0 adopts a rule prohibiting all originating affiliated providers to record and report million or less in average annual and intermediate providers—including the information required individually or receipts. According to Census Bureau LECs, IXCs, CMRS providers, aggregated to the holding-company data for 2007, there were 2,623 firms in interconnected VoIP, and one-way VoIP level, which should make it easier for this category that operated for the entire providers—from causing audible ringing smaller entities to record and report year. Of these, 2478 establishments had to be sent to the caller before the data in ways that are less burdensome annual receipts of under $10 million terminating provider has signaled that to them. and 145 establishments had annual the called party is being alerted. 153. The rules adopted in the Order receipts of $10 million or more. Compliance with these ring signaling also include a safe harbor provision that Consequently, we estimate that the integrity requirements may affect small could reduce the economic impact on majority of these firms are small entities entities, and may include new small entities. The safe harbor relieves that may be affected by our action. administrative processes. covered providers of their reporting obligations after one year and reduces D. Description of Projected Reporting, E. Steps Taken To Minimize the Significant Economic Impact on Small their retention obligations if they certify Recordkeeping, and Other Compliance that: They restrict by contract directly Requirements for Small Entities Entities, and Significant Alternatives Considered connected intermediate providers to no 147. The Order requires covered more than one additional intermediate providers to submit a certified report to 149. The RFA requires an agency to provider in the call path before the call the Commission once per calendar describe any significant, specifically reaches the terminating provider; any quarter that includes, for each full small business, alternatives that it has nondisclosure agreement with an month in that quarter: (1) For each rural considered in reaching its proposed intermediate provider permits the OCN, the OCN, the state, the total approach, which may include the covered provider to reveal the number of attempted interstate calls, the following four alternatives (among intermediate provider’s identity to the number of attempted interstate calls that others): ‘‘(1) The establishment of Commission and to any rural carrier were answered, and the number of differing compliance or reporting whose incoming long-distance traffic is attempted interstate calls that were not requirements or timetables that take into affected by the intermediate provider’s answered, reported separately for call account the resources available to small performance; and they have a process in attempts signaled as (a) busy, (b) ring no entities; (2) the clarification, place to monitor the performance of answer, or (c) unassigned number; (2) consolidation, or simplification of their intermediate providers. the same information described in (1), compliance and reporting requirements 154. The Order delegates to the but for intrastate calls; (3) the same under the rules for such small entities; Wireline Competition Bureau, in information regarding attempted (3) the use of performance rather than consultation with the Enforcement interstate calls described in (1), but for design standards; and (4) an exemption Bureau, the authority to consider nonrural OCNs in the aggregate; and (4) from coverage of the rule, or any part applications for waiver of the the same information regarding thereof, for such small entities.’’ recordkeeping, retention, and reporting

VerDate Mar<15>2010 15:00 Dec 16, 2013 Jkt 232001 PO 00000 Frm 00044 Fmt 4700 Sfmt 4700 E:\FR\FM\17DER1.SGM 17DER1 wreier-aviles on DSK5TPTVN1PROD with RULES Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Rules and Regulations 76239

requirements adopted in the Order. If the Order states that the Commission It is further ordered that the approved, these waivers will reduce or shall complete a proceeding in which it Commission’s Consumer and eliminate a covered provider’s reevaluates whether to keep, eliminate, Governmental Affairs Bureau, Reference recordkeeping, retention, or reporting or amend the data collection and Information Center, shall send a copy of obligations. In evaluating a provider’s reporting rules three years after they this Report and Order, including the waiver request, the Bureau may become effective. That time should be Final Regulatory Flexibility Analysis, to consider: Whether a provider has sufficient for the Commission and the the Chief Counsel for Advocacy of the demonstrated that it qualifies for the public to review the data collected Small Business Administration. safe harbor; whether it persuasively herein and determine whether the rules List of Subjects in 47 CFR Part 64 demonstrates that it has processes in adopted today remain in the public place to ensure that calls to rural interest going forward. Communications common carriers, incumbent LECs successfully reach their 156. The proposed ring signaling Reporting and recordkeeping destinations, such as by adopting integrity requirements in the NPRM requirements, Telecommunications, industry best practices; and whether the could have an economic impact on both Telephone. provider has demonstrated that it has small and large entities. However, the Federal Communications Commission. capabilities and processes to monitor its Commission believes that any impact of Marlene H. Dortch, such requirements is outweighed by the own performance by the OCN of the Secretary. called party’s LEC. As a condition of a accompanying benefits to the public and waiver, the Bureau will require a to the operation and efficiency of the For the reasons discussed in the provider to report information about long distance industry. preamble, the Federal Communications Commission amends 47 CFR part 64 as rural call completion for a one-year F. Report to Congress period, and such a report may be based follows: on a statistically valid sample of calls. 157. The Commission will send a copy of the Order, including this FRFA, PART 64—MISCELLANEOUS RULES In addition, the Bureau may require, as RELATING TO COMMON CARRIERS a condition of a waiver, that a provider in a report to be sent to Congress pursuant to the Congressional Review collect and retain some data, such as ■ 1. The authority citation for part 64 Act. In addition, the Commission will data reflecting a statistically valid continues to read as follows: sample of calls to rural and nonrural send a copy of the Order, including this Authority: 47 U.S.C. 154, 254(k); areas. FRFA, to the Chief Counsel for Advocacy of the SBA. A copy of the 403(b)(2)(B), (c), Pub. L. 104–104, 110 Stat. 155. The Commission considered the Order and FRFA (or summaries thereof) 56. Interpret or apply 47 U.S.C. 201, 218, 222, economic impact on small entities, as will also be published in the Federal 225, 226, 227, 228, 254(k), 616, 620, and the Middle Class Tax Relief and Job Creation Act identified in comments filed in response Register. to the NPRM, in reaching its final of 2012, Pub. L. 112–96, unless otherwise conclusions and taking action in this VI. Ordering Clauses noted. ■ 2. Add subpart V to part 64 to read as proceeding. In declining to adopt a Accordingly, it is ordered that, follows: sunset date for the rules, the pursuant to sections 1, 4(i), 201(b), Commission considered whether the 202(a), 218, 220(a), 251(a), and 403 of Subpart V—Recording, Retention and rules should expire on a particular date the Communications Act of 1934, as Reporting of Data on Long-Distance to account for the possibility that amended, 47 U.S.C. 151, 154(i), 201(b), Telephone Calls to Rural Areas and reforms to the intercarrier compensation 202(a), 218, 220(a), 251(a), and 403, the Reporting of Data on Long-Distance rules may alleviate many rural call Report and Order IS ADOPTED. Telephone Calls to Nonrural Areas completion problems. However, the It is further ordered that part 64 of the Commission must ensure that it has the Commission’s rules is amended as set Sec. data necessary to adopt a long-term forth in Appendix A of the Report and 64.2101 Definitions. solution regarding the disparity in call Order. 64.2103 Retention of call attempt records. completion rates between rural and It is further ordered that, pursuant to 64.2105 Reporting requirements. nonrural areas. Moreover, while the bill- sections 1.4(b)(1) and 1.103(a) of the 64.2107 Reduced retention and reporting and-keep transition should, to a large Commission’s rules, 47 CFR 1.4(b)(1), requirements for qualifying providers extent, eliminate the financial incentive under the Safe Harbor. 1.103(a), this Report and Order shall be 64.2109 Disclosure of data. structure that contributes to rural call effective January 16, 2014, except for completion problems, we conclude that § 64.2201 of the Commission’s rules, § 64.2101 Definitions. rural call completion problems may not which will become effective January 31, For purposes of this subpart, the be solely attributable to terminating 2014, and §§ 64.2103, 64.2105, and following definitions will apply: charges. Although declining to adopt a 64.2107 and the information collection Affiliate. The term ‘‘affiliate’’ has the sunset provision could have an ongoing in paragraph 67 of this Report and same meaning as in 47 U.S.C. 153(2). economic impact on both small and Order, which contains information Call attempt. The term ‘‘call attempt’’ large entities, the Commission believes collection requirements that have not means a call that results in transmission that any such impact is outweighed by been approved by Office of Management by the covered provider toward an the benefit of ensuring that the and Budget. The Federal incumbent local exchange carrier (LEC) Commission continues to obtain the Communications Commission will of the initial call setup message, data necessary to address the rural call publish a document in the Federal regardless of the voice call signaling and completion problem should the Register announcing the effective date. transmission technology used. intercarrier compensation reforms it is further ordered that the Covered provider. The term ‘‘covered alleviate only some of the issues Commission shall send a copy of this provider’’ means a provider of long- plaguing long-distance call attempts to Report and Order to Congress and to the distance voice service that makes the rural areas. Furthermore, to ensure that Government Accountability Office initial long-distance call path choice for the data collection and reporting rules pursuant to the Congressional Review more than 100,000 domestic retail do not last without review in perpetuity, Act, see 5 U.S.C. 801(a)(1)(A). subscriber lines, counting the total of all

VerDate Mar<15>2010 15:00 Dec 16, 2013 Jkt 232001 PO 00000 Frm 00045 Fmt 4700 Sfmt 4700 E:\FR\FM\17DER1.SGM 17DER1 wreier-aviles on DSK5TPTVN1PROD with RULES 76240 Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Rules and Regulations

business and residential fixed a period that includes the six most (iv) The number of interstate call subscriber lines and mobile phones and recent complete calendar months. attempts that were answered; aggregated over all of the providers’ (b) Affiliated covered providers may (v) The number of interstate call affiliates. A covered provider may be a record and retain the information attempts that were not answered, local exchange carrier as defined in required by this rule individually or in reported separately for call attempts § 64.4001(e), an interexchange carrier as the aggregate. signaled as busy, ring no answer, or defined in § 64.4001(d), a provider of (c) A call attempt that is returned by unassigned number; commercial mobile radio service as an intermediate provider to the covered (vi) The number of intrastate call defined in § 20.3 of this chapter, a provider and reassigned shall count as attempts; provider of interconnected voice over a single call attempt. (vii) The number of intrastate call Internet Protocol (VoIP) service as (d) Call attempts to toll-free numbers, attempts that were answered; and defined in 47 U.S.C. 153(25), or a as defined in § 52.101(f) of this chapter, (viii) The number of intrastate call provider of non-interconnected VoIP are excluded from these requirements. attempts that were not answered, service as defined in 47 U.S.C. 153(36) (e) The information contained in each reported separately for call attempts to the extent such a provider offers the record shall include: signaled as busy, ring no answer, or capability to place calls to the public (1) The calling party number; unassigned number. switched telephone network. (2) The called party number; (2) For nonrural OCNs in the Initial long-distance call path choice. (3) The date; aggregate: The term ‘‘initial long-distance call path (4) The time; (i) The number of interstate call choice’’ means the static or dynamic (5) An indication whether the call attempts; selection of the path for a long-distance attempt was handed off to an (ii) The number of interstate call call based on the called number of the intermediate provider or not and, if so, attempts that were answered; individual call. which intermediate provider; (iii) The number of interstate call Intermediate provider. The term (6) The rural OCN associated with the attempts that were not answered, ‘‘intermediate provider’’ has the same called party number; reported separately for call attempts meaning as in § 64.1600(f). (7) An indication whether the call signaled as busy, ring no answer, or Long-distance voice service. The term attempt was interstate or intrastate; unassigned number; ‘‘long-distance voice service’’ includes (8) An indication whether the call (iv) The number of intrastate call interstate interLATA, intrastate attempt was answered, which may take attempts; interLATA, interstate interexchange, the form of an SS7 signaling cause code (v) The number of intrastate call intrastate interexchange, inter-MTA or SIP signaling message code attempts that were answered; and interstate and inter-MTA intrastate associated with each call attempt; and (vi) The number of intrastate call voice services. (9) An indication whether the call attempts that were not answered, Operating company number (OCN). attempt was completed to the reported separately for call attempts The term ‘‘operating company number’’ incumbent local exchange carrier but signaled as busy, ring no answer, or means a four-place alphanumeric code signaled as busy, ring no answer, or unassigned number. that uniquely identifies a local exchange unassigned number. This indication (c) In reporting the information carrier. may take the form of an SS7 signaling described in paragraph (b) of this Rural OCN. The term ‘‘rural OCN’’ cause code or SIP signaling message section, a covered provider may means an operating company number code associated with each call attempt. disaggregate calls originated by that uniquely identifies an incumbent automatic telephone dialing systems (as § 64.2105 Reporting requirements. LEC (as defined in § 51.5 of this chapter) defined in § 64.1200(f)) if it includes an that is a rural telephone company (as (a) Except as described in § 64.2107, explanation of the method used to defined in § 51.5 of this chapter). The each covered provider shall submit a identify those calls. term ‘‘nonrural OCN’’ means an certified report to the Commission in (d) Affiliated covered providers may operating company number that electronic form on the following report this information individually or uniquely identifies an incumbent LEC quarterly schedule: February 1 in the aggregate. (as defined in § 51.5 of this chapter) that (reflecting monthly data from October is not a rural telephone company (as through December), May 1 (reflecting § 64.2107 Reduced retention and reporting defined in § 51.5 of this chapter). We monthly data from January through requirements for qualifying providers under the Safe Harbor. direct NECA to update the lists of rural March), August 1 (reflecting monthly and nonrural OCNs annually and data from April through June), and (a)(1) A covered provider may reduce provide them to the Wireline November 1 (reflecting monthly data its retention and reporting obligations Competition Bureau in time for the from July through September). An under this subpart if it files one of the Bureau to publish the lists no later than officer or director of each covered following certifications, signed by an November 15. These lists will be the provider must certify to the accuracy of officer or director of the covered definitive lists of rural OCNs and each report. provider regarding the accuracy and nonrural OCNs for purposes of this (b) The information contained in the completeness of the information subpart for the following calendar year. certified report shall include the provided, in WC Docket No. 13–39 on following information about subscriber any of the four quarterly filing dates § 64.2103 Retention of call attempt lines for which the covered provider established in § 64.2105 and annually records. makes the initial long-distance call path thereafter. (a) Except as described in § 64.2107, choice, reported separately for each I lll (name), lll (title), an each covered provider shall record and month in that quarter: officer of lll (entity), certify that retain information about each call (1) For each rural OCN: lll (entity) uses no intermediate attempt to a rural OCN from subscriber (i) The OCN; providers; lines for which the covered provider (ii) The State; or makes the initial long-distance call path (iii) The number of interstate call I lll (name), lll (title), an choice in a readily retrievable form for attempts; officer of lll (entity), certify that

VerDate Mar<15>2010 15:00 Dec 16, 2013 Jkt 232001 PO 00000 Frm 00046 Fmt 4700 Sfmt 4700 E:\FR\FM\17DER1.SGM 17DER1 wreier-aviles on DSK5TPTVN1PROD with RULES Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Rules and Regulations 76241

lll (entity) restricts by contract any states are able to maintain the international calls while they are within intermediate provider to which a call is confidentiality of this information. the United States. directed by lll (entity) from ■ 3. Add subpart W, consisting of [FR Doc. 2013–29867 Filed 12–16–13; 8:45 am] permitting more than one additional § 64.2201, to read as follows: BILLING CODE 6712–01–P intermediate provider in the call path before the call reaches the terminating Subpart W—Ring Signaling Integrity provider or terminating tandem. I certify DEPARTMENT OF TRANSPORTATION that any nondisclosure agreement with § 64.2201 Ringing indication requirements. an intermediate provider permits lll (a) A long-distance voice service Federal Motor Carrier Safety (entity) to reveal the identity of the provider shall not convey a ringing Administration intermediate provider and any indication to the calling party until the additional intermediate provider to the terminating provider has signaled that 49 CFR Part 369 Commission and to the rural incumbent the called party is being alerted to an local exchange carrier(s) whose incoming call, such as by ringing. [Docket No. FMCSA–2012–0020] incoming long-distance calls are (1) If the terminating provider signals RIN–2126–AB69; Formerly RIN 2126–AB48 affected by the intermediate provider’s that the called party is being alerted and performance. I certify that lll provides an audio tone or Rescission of Quarterly Financial (entity) has a process in place to announcement, originating providers Reporting Requirements monitor the performance of its must cease any locally generated AGENCY: intermediate providers. Federal Motor Carrier Safety audible tone or announcement and Administration (FMCSA), DOT. (2) Covered providers that file the convey the terminating provider’s tone ACTION: second certification must describe the or announcement to the calling party. Final rule. process they have in place to monitor (2) The requirements in this SUMMARY: FMCSA eliminates the the performance of their intermediate paragraph apply to all voice call quarterly financial reporting providers. signaling and transmission technologies requirements for certain for-hire motor (b) A covered provider that meets the and to all long-distance voice service carriers of property (Form QFR) and for- requirements described in paragraph (a) providers, including local exchange hire motor carriers of passengers (Form of this section must comply with the carriers as defined in § 64.4001(e), MP–1). This paperwork burden is data retention requirements in § 64.2103 interexchange carriers as defined in removed without an adverse impact on for a period that includes only the three § 64.4001(d), providers of commercial safety or the Agency’s ability to most recent complete calendar months, mobile radio service as defined in § 20.3 maintain effective commercial so long as it continues to meet the of this chapter, providers of regulatory oversight over the for-hire requirements of paragraph (a) of this interconnected voice over Internet trucking and passenger-carrying section. A covered provider that ceases Protocol (VoIP) service as defined in 47 industries. The annual reporting to meet the requirements described in U.S.C. 153(25), and providers of non- requirements remain. paragraph (a) of this must immediately interconnected VoIP service as defined DATES: Effective Date: January 16, 2014. begin retaining data for six months, as in 47 U.S.C. 153(36) to the extent such FOR FURTHER INFORMATION CONTACT: If required by § 64.2103. providers offer the capability to place you have questions on this rule, email (c) A covered provider that meets the calls to or receive calls from the public or call Ms. Vivian Oliver, Office of requirements described in paragraph (a) switched telephone network. of this section must comply with the Research and Information Technology, (b) Intermediate providers must return Federal Motor Carrier Safety reporting requirements in § 64.2105 for unaltered to providers in the call path a period of one year commencing when Administration, 1200 New Jersey Ave. any signaling information that indicates SE., Washington, DC 20590; Telephone it first filed the certification described in that the terminating provider is alerting paragraph (a) of this section, so long as 202–366–2974; email Vivian.Oliver@ the called party, such as by ringing. dot.gov. it continues to meet those paragraph (a) (1) An intermediate provider may not of this section requirements. A covered generate signaling information that SUPPLEMENTARY INFORMATION: provider that ceases to meet the indicates the terminating provider is Executive Summary requirements described in paragraph (a) alerting the called party. An of this section must begin filing the intermediate provider must pass the This action is in response to a reports required by § 64.2105 on the signaling information indicating that the recommendation received from the next filing deadline. called party is being alerted unaltered to public and in response to Executive (d) Affiliated covered providers may subsequent providers in the call path. Order 13563, ‘‘Improving Regulation meet the requirements of paragraph (a) and Regulatory Review,’’ which (2) Intermediate providers must also of this section individually or in the required Agencies, among other things, return unaltered any audio tone or aggregate. to prepare plans for reviewing existing announcement provided by the rules. § 64.2109 Disclosure of data. terminating provider. The rule eliminates the quarterly (a) Providers subject to the reporting (3) In this section, the term financial reporting requirements for requirements in § 64.2105 of this ‘‘intermediate provider’’ has the same certain for-hire motor carriers of chapter may make requests for meaning as in § 64.1600(f). property and for-hire motor carriers of Commission nondisclosure of the data (4) The requirements in this section passengers. This paperwork burden can submitted under § 0.459 of this chapter apply to all voice call signaling and be removed without an adverse impact by so indicating on the report at the transmission technologies. on safety or the Agency’s ability to time that the data are submitted. (c) The requirements in paragraphs (a) maintain effective commercial (b) The Chief of the Wireline and (b) of this section apply to both regulatory oversight over the for-hire Competition Bureau will release interstate and intrastate calls, as well as trucking and passenger-carrying information to states upon request, if the to both originating and terminating industries.

VerDate Mar<15>2010 15:00 Dec 16, 2013 Jkt 232001 PO 00000 Frm 00047 Fmt 4700 Sfmt 4700 E:\FR\FM\17DER1.SGM 17DER1 wreier-aviles on DSK5TPTVN1PROD with RULES