82_FR_18162 82 FR 18090 - Reporting Requirements for U.S. Providers of International Services; 2016 Biennial Review of Telecommunications Regulations

82 FR 18090 - Reporting Requirements for U.S. Providers of International Services; 2016 Biennial Review of Telecommunications Regulations

FEDERAL COMMUNICATIONS COMMISSION

Federal Register Volume 82, Issue 72 (April 17, 2017)

Page Range18090-18096
FR Document2017-07547

In this Notice of Proposed Rulemaking (NPRM), the Federal Communications Commission (Commission) seeks comment on the federal need for the international services reporting requirements set forth in the Commission's rules. Those reporting requirements are the annual Traffic and Revenue Reports and the Circuit Capacity Reports. The Commission believes these reports are no longer necessary in their current form. The Commission proposes to eliminate the annual Traffic and Revenue Reports altogether, and seeks comment on whether there are ways to further streamline the Circuit Capacity Reports.

Federal Register, Volume 82 Issue 72 (Monday, April 17, 2017)
[Federal Register Volume 82, Number 72 (Monday, April 17, 2017)]
[Proposed Rules]
[Pages 18090-18096]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-07547]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 82, No. 72 / Monday, April 17, 2017 / 
Proposed Rules

[[Page 18090]]



FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 43 and 63

[IB Docket Nos. 17-55 and 16-131, FCC 17-28]


Reporting Requirements for U.S. Providers of International 
Services; 2016 Biennial Review of Telecommunications Regulations

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: In this Notice of Proposed Rulemaking (NPRM), the Federal 
Communications Commission (Commission) seeks comment on the federal 
need for the international services reporting requirements set forth in 
the Commission's rules. Those reporting requirements are the annual 
Traffic and Revenue Reports and the Circuit Capacity Reports. The 
Commission believes these reports are no longer necessary in their 
current form. The Commission proposes to eliminate the annual Traffic 
and Revenue Reports altogether, and seeks comment on whether there are 
ways to further streamline the Circuit Capacity Reports.

DATES: Submit comments on or before May 17, 2017, and replies on or 
before June 1, 2017.

ADDRESSES: You may submit comments, identified by IB Docket Nos. 16-131 
and 17-55, by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Federal Communications Commission's ECFS Web site: http://fjallfoss.fcc.gov/ecfs2/. Follow the instructions for submitting 
comments.
     People with Disabilities: Contact the FCC to request 
reasonable accommodations (accessible format documents, sign language 
interpreters, CART, etc.) by email to [email protected], phone: 202-418-
0530 (voice), tty: 202-418-0432.
    For detailed instructions on submitting comments and additional 
information on the rulemaking process, see the SUPPLEMENTARY 
INFORMATION section of this document.

FOR FURTHER INFORMATION CONTACT: David Krech or Arthur Lechtman, 
Telecommunications and Analysis Division, International Bureau, FCC, 
(202) 418-1480 or via email to [email protected] or 
[email protected]. On PRA matters, contact Cathy Williams, Office 
of the Managing Director, FCC, (202) 418-2918 or via email to 
[email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Proposed Rulemaking in IB Docket Nos. 16-131 and 17-55, adopted on 
March 23, 2017 and released on March 23, 2017. In the Notice of 
Proposed Rulemaking, the Commission seeks comment on the federal need 
for the international services reporting requirements set forth in 
Section 43.62 of the Commission's rules. The full text of this document 
is available for inspection and copying during normal business hours in 
the FCC Reference Center, 445 12th Street SW., Washington, DC 20554. 
The document also is available for download over the Internet at: 
https://www.fcc.gov/document/section-4362-nprm.

Comment Filing Procedures

    Pursuant to 47 CFR 1.415, 1.419, interested parties may file 
comments and reply comments on or before the dates indicated above. 
Comments may be filed using the Commission's Electronic Comment Filing 
System (ECFS). See Electronic Filing of Documents in Rulemaking 
Proceedings, 63 FR 24121 (1998).
     Electronic Filers: Comments may be filed electronically 
using the Internet by accessing the Commission's ECFS Web site at 
http://apps.fcc.gov/ecfs/.
     Paper Filers: Parties who choose to file by paper must 
file an original and one copy of each filing. If more than one docket 
or rulemaking number appears in the caption of this proceeding, filers 
must submit two additional copies for each additional docket or 
rulemaking number. Filings can be sent by hand or messenger delivery, 
by commercial overnight courier, or by first-class or overnight U.S. 
Postal Service mail. All filings must be addressed to the Commission's 
Secretary, Office of the Secretary, Federal Communications Commission.
     All hand-delivered or messenger-delivered paper filings 
for the Commission's Secretary must be delivered to FCC Headquarters at 
445 12th St. SW., Room TW-A325, Washington, DC 20554. The filing hours 
are 8:00 a.m. to 7:00 p.m. All hand deliveries must be held together 
with rubber bands or fasteners. Any envelopes and boxes must be 
disposed of before entering the building.
     Commercial overnight mail (other than U.S. Postal Service 
Express Mail and Priority Mail) must be sent to 9300 East Hampton 
Drive, Capitol Heights, MD 20743.
     U.S. Postal Service first-class, Express, and Priority 
mail must be addressed to 445 12th Street SW., Washington DC 20554.

Synopsis

    1. In this NPRM, the Commission seeks comment on the federal need 
for the international services reporting requirements set forth in 
section 43.62 of the Commission's rules. See Reporting Requirements for 
U.S. Providers of International Telecommunications Services; Amendment 
of part 43 of the Commission's Rules, IB Docket No. 04-112, Second 
Report and Order, 78 FR 15615 (2013). Those reporting requirements fall 
into two categories. First, the Traffic and Revenue Reports require 
providers of international telecommunications services to report 
annually their traffic and revenue for international voice services, 
international miscellaneous services, and international common carrier 
private lines. Second, the Circuit Capacity Reports require providers 
of international telecommunications services to file annual reports 
identifying the submarine cable, satellite, and terrestrial capacity 
between the United States and foreign points. The Commission believes 
these reports are no longer necessary in their current form. The 
Commission proposes to eliminate the annual Traffic and Revenue Reports 
altogether, and seeks comment on whether there are ways to further 
streamline the Circuit Capacity Reports.
    2. Traffic and Revenue Reports. Currently, any person or entity 
that holds an international section 214

[[Page 18091]]

authorization to provide International Telecommunications Services 
(ITS) and/or any person or entity that is engaged in the provision of 
Interconnected Voice over Internet Protocol (VoIP) Services Connected 
to the Public Switched Telephone Network (PSTN) between the United 
States and any foreign point (together, Filing Entities) must file an 
annual Traffic and Revenue Report. ITS refers to telecommunications 
service between the United States and a foreign point. Interconnected 
VoIP Service Connected to the PSTN refers to service between the United 
States and any foreign point that: (1) Enables real-time, two-way voice 
communications; (2) requires a broadband connection from the user's 
location; (3) requires Internet Protocol-compatible customer premise 
equipment; and (4) permits users generally to receive calls that 
originate on the PSTN or to terminate calls to the PSTN. Filing Manual 
for section 43.62 Annual Reports (IB Feb. 2016) (section 43.62 Filing 
Manual). The information submitted for this annual report covers: (1) 
International Calling Service (ICS); (2) International Private Line 
Service; and (3) International Miscellaneous Services. ICS is defined 
as international message telephone service (IMTS) and Interconnected 
VoIP Connected to the PSTN, including International Call Completion 
Service for IMTS or Interconnected VoIP Connected to the PSTN. IMTS 
consists of telecommunications services (including voice and low-speed 
dial-up data) provided over the public switched networks of U.S. 
international carriers. International Private Line Service is defined 
as Private Line Service between the United States and a foreign point. 
Private Line Service refers to making available to a customer on a 
common carrier basis a circuit for a specified period of time for the 
customer's exclusive use. International Miscellaneous Service refers to 
any international telecommunications service other than ICS and 
International Private Line Service. Section 43.62 Filing Manual. Each 
person or entity that holds an international section 214 authorization, 
whether or not it provided any ITS during the preceding calendar year, 
must file at least a registration form and services checklist 
indicating whether it provided international service the previous year. 
Filing Entities that only had $5 million or less in ICS resale revenues 
need only file the registration form and services checklist. Filing 
Entities report information on International Miscellaneous Services for 
which they had $5 million or more in revenue.
    3. Historically, the primary role of the international Traffic and 
Revenue Reports was to monitor settlement rates. The reports were 
important in the development and enforcement of the Commission's 
benchmark policy, requiring international settlement rates on 
particular routes to fall below competitive benchmarks. International 
Settlement Rates, IB Docket No. 96-261, Report and Order, 62 FR 45758 
(1997) (Benchmarks Order). As the international telecommunications 
sector has liberalized and competition has grown, the Commission has 
determined that most routes were competitive based, in large part, on 
the Traffic and Revenue Reports; data from these reports thus allowed 
the Commission to end its International Settlements Policy. See 
International Settlements Policy Reform et al., IB Docket Nos. 11-80, 
et al., Report and Order, 78 FR 11109 (2013); International Settlements 
Policy Reform; International Settlement Rates, IB Docket Nos. 02-324, 
96-261, First Report and Order, 69 FR 23151 (2004).
    4. Circuit Capacity Reports. The Circuit Capacity Reports help the 
Commission understand the U.S.-international transport markets. The 
Commission receives two types of data regarding submarine cables: (1) 
Submarine cable operators report the available and planned capacity of 
their submarine cable systems and (2) common carriers and submarine 
cable licensees report the capacity that they own or lease on a 
submarine cable. Submarine cable landing licensees are required to file 
available and planned capacity information for each cable system as of 
December 31 of the reporting period. Any U.S. international common 
carrier or cable landing licensee that owned or leased capacity on a 
submarine cable between the United States and any foreign point on 
December 31 of the reporting period is required to file capacity 
amounts for the following categories: (1) Owned capacity; (2) net 
indefeasible rights-of-use (IRUs); (3) net inter-carrier leaseholds 
(ICLs); (4) net capacity held (i.e., the total of categories (1) 
through (3)); (5) activated capacity; and (6) non-activated capacity. 
Section 43.62 Filing Manual. The Commission also receives world total 
circuit data for terrestrial and satellite facilities. Each facilities-
based common carrier is required to file a report showing its active 
common carrier terrestrial or satellite circuits between the United 
States and any foreign point as of December 31 of the preceding 
calendar year. The terrestrial and satellite circuits are reported in 
world-total counts of 64 kilobits per second (kbps) circuit units. In 
addition, non-common carrier satellite operators are required to report 
a world-total count of circuits used by themselves or their affiliates, 
or sold or leased to any customer as of December 31 of the reporting 
period, other than to an international common carrier authorized by the 
Commission to provide U.S. international common carrier services.
    5. The Circuit Capacity Reports show the level of facilities-based 
competition for the major U.S.-international routes, and can help 
policy-makers and industry determine whether there is and will be 
sufficient capacity to handle demand for telecommunications on a 
specific U.S.-international route. The Commission has used the data in 
analyzing proposed transactions in the U.S.-international services 
markets, particularly with respect to whether a transaction would 
affect facilities-based competition on any particular U.S.-
international route(s). The data are used to determine whether entry by 
foreign companies will benefit or adversely affect competition.
    6. The Commission also uses the data for national security and 
public safety purposes, to ensure that U.S. international 
telecommunications are safe from disruption, and to provide information 
about key routes and whether there are alternative cables or satellite 
facilities available to provide communications to specific locations. 
The data provide information on ownership and control of submarine 
cable capacity, to help national security agencies assess the safety 
and integrity of U.S.-international telecommunications infrastructure. 
The Commission also uses the terrestrial, satellite, and submarine 
cable capacity data to administer the annual regulatory fees 
established in section 9 of the Communications Act of 1934, as amended 
(the Act). 47 U.S.C. 159.
    7. Biennial Review. On November 3, 2016, the Commission released a 
Public Notice seeking comment on the 2016 biennial review of our 
telecommunications regulations pursuant to section 11 of the Act. 47 
U.S.C. 161; 31 FCC Rcd 12166 (2016). Several parties recommend that we 
further streamline or eliminate the reporting requirements in section 
43.62 of the Commission's rules, and no party wrote in support of 
retaining these requirements.
    8. DISCUSSION. After reviewing the record in this biennial review 
proceeding, and based on our own understanding of the competitive 
nature of the international services sector, we

[[Page 18092]]

believe that the international traffic and revenue data collection is 
no longer necessary, and we propose to eliminate this reporting 
requirement. We instead believe that more targeted collections, in 
response to actual U.S. carrier complaints, may provide the Commission 
with all the information it needs.
    9. In contrast, we believe that it might serve the public interest 
to retain the Circuit Capacity Reports. We thus explore whether, 
instead of eliminating these reports, there are ways we could 
streamline or modify this data collection while continuing to meet our 
statutory obligations.
    10. Traffic and Revenue Reports. We propose to eliminate the 
current international Traffic and Revenue Reports requirement. We 
believe that the costs of this data collection--which are significant 
both for filers and for the Commission--now exceed the benefits of the 
information. We seek comment on what effect elimination of this 
reporting requirement will have on U.S. consumers and U.S. carriers, 
and whether there may be less burdensome ways for the Commission to 
obtain data in order to fulfill its statutory obligations and protect 
U.S. interests.
    11. The international traffic and revenue reporting requirement 
appears to place a significant burden on the filing entities and the 
Commission. Although the Commission does not have firm numbers on the 
costs to industry to prepare and submit the reports, we have developed 
estimates of the burdens. These estimates have been derived by applying 
the number of traffic and revenue filings in 2016 to the burden 
estimates in the Paperwork Reduction Act review process for the annual 
Traffic and Revenue Reports and Circuit Capacity Reports. In 2016, 
1,888 entities filed information regarding their 2015 international 
traffic and revenue. Of those, 1,822 filed only a registration form and 
did not file any data because they either did not have any 
international revenues in 2015, or only had less than $5 million in ICS 
resale revenue. Sixty-six filed data for ICS facilities-based services, 
International Private Line Services and/or International Miscellaneous 
Services, and 47 of the 66 filed revisions. In 2014, the Commission 
estimated that filers spend one hour preparing and filing the 
registration form; two hours preparing and filing world total ICS 
resale data; 150 hours preparing and submitting route-by-route data for 
facilities-based ICS and or international private lines; and 50 hours 
preparing and filing revised data. In total, we estimate that industry 
spent 14,770 hours preparing and submitting the data for the 2015 
annual Traffic and Revenue Reports. We estimate that Commission staff 
will spend 2,218 hours reviewing and publishing the data at a total 
cost of at least $112,076. We seek comment on these estimates and ask 
commenters to provide us with the cost of preparing and submitting the 
Traffic and Revenue Reports. In particular, we seek comment on the 
actual time spent to produce the data and ask commenters to provide us 
with an average wage rate. AT&T Services Inc., for example, reported 
that nearly 300 hours were required to prepare its Traffic and Revenue 
Report. We also seek comment on the complexity involved in providing 
data to the Commission. Do commenters have the information required for 
filing readily available from their internal systems? Do commenters 
need to maintain redundant systems or perform complex analysis on their 
internal data in order to submit their reports? What impact, if any, 
does the complexity of analysis required have on the reliability of the 
data submitted?
    12. Given the increasing level of competition on most U.S-
international routes, we believe that the benefits of the Traffic and 
Revenue Reports have so diminished that they no longer outweigh the 
costs. In the last 20 years, since the implementation of the World 
Trade Organization (WTO) Basic Telecom Agreement and the establishment 
of the Commission's benchmarks settlements policy, the international 
telecommunications sector has become much more competitive on both the 
U.S. and foreign ends, as government regulations in the United States 
and abroad were relaxed, and enabled entry. As a result, both U.S.-
international average settlement rates and average IMTS revenue per 
minute have dropped dramatically. IMTS is defined as the provision of 
message telephone service (MTS) between the United States and a foreign 
point. The term MTS refers to the transmission and reception of speech 
and low-speed dial-up data over the PSTN. Section 43.62 Filing Manual. 
Average settlement rates paid out by U.S. carriers have decreased from 
$0.18 per minute in 2000 to $0.03 per minute in 2014, an 83 percent 
drop. Average facilities ICS revenue per minute, which is a general 
measure of international calling prices, has decreased from $0.47 per 
minute in 2000 to $0.04 per minute in 2014, indicating a drop of 85 
percent in the price to consumers for international calling.
    13. Additionally, the data we collect may actually understate the 
competitiveness of the international market. Although we collect data 
from interconnected VoIP providers (354 interconnected VoIP providers 
filed Traffic and Revenue Reports in 2015), we do not mandate reporting 
from non-interconnected VoIP providers, many of whose services are free 
to the customer. This indicates that overall consumer rates for 
international voice traffic may be below those indicated by the 
reports. As use of those services continues to increase, it calls into 
question the continuing value of the overall traffic and revenue data, 
since such data reveal only a fraction of the overall picture of 
international communications, a fraction that is likely to grow smaller 
over time. To the extent information is available, we seek comment on 
what portion of international telecommunications services is provided 
by non-interconnected VoIP services, the projected future growth of 
those services, and their impact on the relevance and accuracy of our 
current Traffic and Revenue Reports.
    14. Settlement rates to most foreign points are also well below the 
benchmark rate established for that country, indicating that 
competition has driven the rate closer to cost-based levels. Though 
some routes are still subject to the anti-competitive effects of 
foreign monopolist providers and government regulation, for the most 
part U.S.-international routes are competitive. In a recent 
presentation to the Expert Group on International Telecommunication 
Regulations, International Telecommunication Union (ITU), the United 
States noted that ``[a]ccording to the ITU, a clear majority of 
countries in all six ITU regions have competitive markets covering 
elements that are essential to the provision of international 
telecommunication services--domestic fixed long-distance, mobile, 
leased lines, and international gateways. For example, according to 
ITU's 2015 ICTEYE, a majority of countries have various levels of 
competitive markets in domestic and international long distance 
services and more than 75 percent of ITU Member States have competitive 
international gateways and leased line markets.'' This is due to 
relaxed government regulations, entry by new carriers, entry by 
existing incumbents into other countries' markets, technological 
developments that have enhanced ease of entry, and, perhaps most 
significantly for the future, the development of VoIP-based 
alternatives to traditional international switched services, such as 
Skype, FaceTime, Viber, or WhatsApp. Attempts to raise settlement rates 
by a foreign carrier, cartel, or government

[[Page 18093]]

can be countered by carriers using our benchmark complaint process, or 
by consumers switching to VoIP-based calling services, many of which 
are free. Although the traffic and revenue data have been useful for 
those times when we have investigated anticompetitive behavior on 
certain routes, these have been relatively infrequent in recent years, 
for example, on the U.S.-Fiji route (2013 to present), U.S.-Pakistan 
route (2013-2016), and U.S.-Tonga route (2009 to present). Moreover, we 
can and do request traffic and revenue information from carriers when a 
carrier complains of anticompetitive conduct by a foreign carrier or 
government on a specific route. The Commission has broad authority to 
investigate possible anti-competitive activities on U.S.-international 
routes.
    15. In eliminating the Traffic and Revenue Reports, is there data 
and information that the Commission would not be able to obtain to 
address instances of anticompetitive conduct on a U.S.-international 
route that adversely affects U.S. consumers or U.S. carriers? How could 
the Commission ascertain which facilities-based carriers have 
termination arrangements on a particular U.S.-international route in 
the absence of reported traffic and revenue data? We seek comment on 
whether there are less burdensome alternatives for carriers to provide 
the Commission with information it needs to protect U.S. consumers and 
carriers. There are also international routes which are not fully 
competitive and on which the settlement rate is still above the 
benchmark rate. For example, according to 2014 data on calling to 
foreign fixed-line networks, there are 48 above-benchmark routes that 
constitute approximately 1 percent of total fixed minutes and 21 
percent of total fixed U.S. settlement payouts worldwide. We seek 
comment on whether the Commission should continue to obtain information 
regarding above-benchmark rates. If so, what information should the 
Commission continue to require? In addition, for those commenters 
opposed to eliminating these reporting requirements, we seek comment on 
how they can be further streamlined and whether the Commission should 
sunset some or all of the provisions. For instance, requiring only 
route-by-route data from facilities-based carriers and eliminating the 
filing requirement for resale, private line, and miscellaneous services 
would greatly reduce the overall industry burden and would exempt over 
1,800 entities from filing Traffic and Revenue Reports. We seek comment 
on all the issues raised and solicit additional feedback on any issues 
we should consider with regard to eliminating the Traffic and Revenue 
Reports.
    16. Circuit Capacity Reports. At this time, we believe that 
retaining the Circuit Capacity Reports might be warranted because the 
benefits appear to exceed the costs of collecting this data. We seek 
comment on our analysis and on ways to further streamline our 
requirements to minimize the burden on filers while ensuring the 
Commission receives the information it needs to meet its statutory 
responsibilities. We propose to delete section 43.62 of the 
Commission's rules, which contains both annual Traffic and Revenue 
Reports and the Circuit Capacity Reports, and place the Circuit 
Capacity Reports in section 43.82 of the Commission's rules.
    17. We seek comment on the burden imposed by our circuit capacity 
reporting requirements. While the Commission does not have firm numbers 
on the costs to industry to prepare and submit the reports, we have 
developed estimates of the burdens. These estimates have been derived 
by applying the number of circuit capacity filings in 2016 to the 
burden estimates in the Paperwork Reduction Act review process for the 
annual Traffic and Revenue Reports and Circuit Capacity Reports. In 
2016, 91 entities filed data regarding their circuits as of December 
31, 2015. Thirty-five reports were filed for terrestrial and satellite 
world total circuits; 30 cable operator reports were filed; and 72 
capacity holder reports were filed. In 2014, the Commission estimated 
that filers spend one hour preparing and filing the registration form; 
one hour preparing and filing world total terrestrial and/or satellite 
circuits; two hours preparing and submitting the cable operators 
report; and 10 hours preparing and filing the cable capacity holders 
report. In total, we estimate that industry spent 906 hours preparing 
and submitting the data for the 2015 annual Circuit Capacity Reports. 
We estimate that Commission staff will spend 372 hours reviewing and 
publishing the data at a total cost of $22,280. We seek comment on 
these estimations and ask commenters to provide us with the cost of 
preparing and submitting the Circuit Capacity Reports. In particular, 
we seek comment on the actual time spent to produce the data and ask 
commenters to provide us with an average wage rate.
    18. Although the value of the Circuit Capacity Reports is less than 
it once was with the advent of competition throughout the international 
marketplace, we believe the reports still retain significant value. For 
one, the Circuit Capacity Reports give the agency a clear understanding 
of which operators have deployed what facilities where--the prime 
information needed for any analysis of facilities-based competition. 
For another, the Circuit Capacity Reports are used by the Commission 
and the national security agencies to understand how to protect and 
secure this critical international infrastructure. For yet another, the 
Commission relies on these reports to carry out its statutory 
obligation to assess regulatory fees on international bearer circuits. 
We believe that these benefits outweigh the costs of this information 
collection. We seek comment on this analysis, and how the benefits of 
the Circuit Capacity Reports can best be quantified.
    19. We also seek comment on ways to streamline or improve our 
reporting requirements. Have there have been changes in the 
international transport markets over the past few years that 
necessitate a reexamination of the type of information we collect, 
especially any changes in the submarine cable markets? How should we 
modify the collection in a manner that would still allow the Commission 
to meet its obligations? How would the cost benefit analysis change 
with the proposed modifications? Should we collect different 
information that would minimize burdens on filers while still providing 
value to the public, industry, and the Commission? We recognize that 
the data are used to assess regulatory fees, and seek comment on 
whether we should require filers to submit, for example, the data at 
the same time as the fee, rather than as a prelude to the fee. What 
other ways can the Commission minimize burdens on filers? What, if any, 
alternative or substitutes for the circuit capacity data, in particular 
the submarine cable data, are available from commercial sources? If 
data are available from commercial sources, are there limitations on 
the Commission's use of that data? We seek comment on this and whether 
there are alternative lower cost means of acquiring circuit capacity 
data. We also seek comment on whether we could eliminate the Circuit 
Capacity Reports, and if so how the Commission could continue to 
perform the functions that the circuit data enable.
    20. We also seek input on two issues that have become apparent with 
the most recent filing of Circuit Capacity Reports. First, for certain 
individual cables, we have observed a discrepancy between the capacity 
reported on the cable operators report and the capacity reported on the 
cable capacity holders

[[Page 18094]]

report. For example, occasionally, we find that the cable capacity 
holders report has higher capacity numbers than the cable operator 
report for the same cable. In those instances, Commission staff will 
contact the filers concerning the inconsistencies. What is the cause of 
such inconsistencies, and how can we best address them?
    21. Second, on the cable capacity holders report, filers are asked 
to report capacity acquired and relinquished via indefeasible rights-
of-use (IRUs) or inter-carrier leaseholds (ICLs) only in those cases 
where such transactions are with another reporting entity. Thus, for 
each entry of capacity acquired by IRU or ICL, there should be a 
corresponding entry of capacity relinquished; however, this has 
generally not been the case. Should we address this by clarifying the 
filing instructions? Or should we change the instructions so that all 
IRU and ICL transactions must be reported, regardless of whether the 
other party is also a reporting party?
    22. As part of the changes adopted in 2013, filers are allowed to 
check a box on the registration form to request confidentiality for 
their data. In the past, the Commission has published information on 
the current and planned capacity of individual U.S.-international 
submarine cables. Several cable operators have recently requested 
confidential treatment for their cable operator data. To minimize 
burdens, we seek comment on whether, for example, in the future the 
Commission should publish such data on a consolidated regional (and not 
cable-specific) basis. We seek comment on whether releasing only 
regional data to the public, without identifying individual cable 
operators, will affect the usefulness of the Circuit Capacity Reports, 
and whether this practice would address concerns operators have 
regarding the confidentiality of data submitted in such reports. We 
note that the Commission would still have the information on a cable-
by-cable basis.
    23. Finally, we propose a change to the confidentiality rule for 
circuit capacity to clarify that requests for confidential treatment 
will be consistent with Section 0.459 of the Commission's rules, and 
seek comment on this proposal.
    24. Ex Parte Rules. The proceeding this NPRM initiates shall be 
treated as a ``permit-but-disclose'' proceeding in accordance with the 
Commission's ex parte rules. Persons making ex parte presentations must 
file a copy of any written presentation or a memorandum summarizing any 
oral presentation within two business days after the presentation 
(unless a different deadline applicable to the Sunshine period 
applies). Persons making oral ex parte presentations are reminded that 
memoranda summarizing the presentation must (1) list all persons 
attending or otherwise participating in the meeting at which the ex 
parte presentation was made, and (2) summarize all data presented and 
arguments made during the presentation. If the presentation consisted 
in whole or in part of the presentation of data or arguments already 
reflected in the presenter's written comments, memoranda or other 
filings in the proceeding, the presenter may provide citations to such 
data or arguments in his or her prior comments, memoranda, or other 
filings (specifying the relevant page and/or paragraph numbers where 
such data or arguments can be found) in lieu of summarizing them in the 
memorandum. Documents shown or given to Commission staff during ex 
parte meetings are deemed to be written ex parte presentations and must 
be filed consistent with Section 1.1206(b) of the Commission's rules. 
In proceedings governed by Section 1.49(f) of the Commission's rules or 
for which the Commission has made available a method of electronic 
filing, written ex parte presentations and memoranda summarizing oral 
ex parte presentations, and all attachments thereto, must be filed 
through the electronic comment filing system available for that 
proceeding, and must be filed in their native format (e.g., .doc, .xml, 
.ppt, searchable .pdf). Participants in this proceeding should 
familiarize themselves with the Commission's ex parte rules.
    25. Paperwork Reduction Act. This document contains proposed new 
and modified information collection requirements. The Commission, as a 
part of its continuing effort to reduce paperwork burdens, invites the 
general public and the Office of Management and Budget to comment on 
the information collection requirements contained in this document, as 
required by the Paperwork Reduction Act of 1995, Public Law 104-13. 
Public and agency comments are due June 16, 2017. Comments should 
address: (a) Whether the proposed collection of information is 
necessary for the proper performance of the functions of the 
Commission, including whether the information shall have practical 
utility; (b) the accuracy of the Commission's burden estimates; (c) 
ways to enhance the quality, utility, and clarity of the information 
collected; (d) ways to minimize the burden of the collection of 
information on the respondents, including the use of automated 
collection techniques or other forms of information technology; and (e) 
way to further reduce the information collection burden on small 
business concerns with fewer than 25 employees. In addition, pursuant 
to the Small Business Paperwork Relief Act of 2002, Public Law 107-198, 
see 44 U.S.C. 3506(c)(4), we seek specific comment on how we might 
``further reduce the information collection burden for small business 
concerns with fewer than 25 employees.''
    26. Statement of Authority. The proposed action is authorized under 
Sections 1, 4(i), 4(j), 11, 201-205, 214, 219-220, 303(r), 309, and 403 
of the Communications Act as amended, 47 U.S.C. 151, 154(i), 154(j), 
161, 201-205, 214, 219-220, 303(r), 309, and 403, and the Cable Landing 
License Act of 1921, 47 U.S.C. 34-39, and 3 U.S.C. 301.

Initial Regulatory Flexibility Act Analysis

    27. As required by the Regulatory Flexibility Act (RFA), the 
Commission has prepared this Initial Regulatory Flexibility Analysis 
(IRFA) of the possible significant economic impact on small entities by 
the policies and rules proposed in this Notice of Proposed Rule Making 
(NPRM). We request written public comments on this IRFA. Commenters 
must identify their comments as responses to the IRFA and must file the 
comments by the deadlines provided in this NPRM. The Commission will 
send a copy of the NPRM, including this IRFA, to the Chief Counsel for 
Advocacy of the Small Business Administration.
    28. The Commission initiated this NPRM to assess the federal need 
for the international reporting requirements set forth in section 43.62 
of the Commission's rules. On November 3, 2016, the Commission released 
a Public Notice seeking comment on the 2016 biennial review of our 
telecommunications regulations pursuant to section 11 of the 
Communications Act of 1934, as amended (the Act). Section 11 requires 
the Commission to (1) review biennially its regulations ``that apply to 
the operations or activities of any provider of telecommunications 
service,'' and (2) ``determine whether any such regulation is no longer 
necessary in the public interest as the result of meaningful economic 
competition between providers of such service.'' Section 11 directs the 
Commission to repeal or modify any regulation that it finds are no 
longer in the public interest. While the Commission streamlined and 
modernized the Part 43 international reporting requirements in 2013, 
several

[[Page 18095]]

parties recommend that we further streamline or eliminate these rules.
    29. The objectives of this proceeding are to eliminate, further 
streamline, or modify the current traffic and revenue reporting 
requirements and further streamline or modify circuit capacity 
reporting requirements that apply to carriers providing international 
services pursuant to section 43.62 of the Commission's rules. 
Specifically, the Commission proposes to eliminate the annual Traffic 
and Revenue Reports, and seeks comment on ways to further streamline 
the annual Circuit Capacity Reports. After reviewing the record in this 
biennial review proceeding, and based on our own understanding of the 
competitive nature of the international services sector, we believe 
that the international traffic and revenue data collection is no longer 
necessary, and we propose to eliminate this reporting requirement. We 
recognize that there may be occasions when we need international 
services market information, and seek comment on how to obtain this 
information in the most cost effective and least burdensome way. With 
respect to the annual Circuit Capacity Reports, we believe they may 
warrant retention, and do not propose their elimination. We do, 
however, explore whether there are ways we could further streamline or 
modify this data collection while meeting our statutory obligations.
    30. Currently, section 43.62(b) of the Commission's rules requires 
providers of international services to report annually their traffic 
and revenue for international voice services, international 
miscellaneous services, and international common carrier private lines. 
Section 43.62(a) of the Commission's rules requires providers of 
international services to report annually submarine cable, satellite, 
and terrestrial capacity between the United States and foreign points.
    31. The RFA directs agencies to provide a description of, and, 
where feasible, an estimate of, the number of small entities that may 
be affected by proposed rules, if adopted. The RFA generally defines 
the term ``small entity'' as having the same meaning as the terms 
``small business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' In addition, the term ``small business'' has the same 
meaning as the term ``small business concern'' under the Small Business 
Act. Pursuant to the RFA, the statutory definition of a small business 
applies ``unless an agency, after consultation with the Office of 
Advocacy of the Small Business Administration and after opportunity for 
public comment, establishes one or more definitions of such term which 
are appropriate to the activities of the agency and publishes such 
definition(s) in the Federal Register.'' A small business concern is 
one which: (1) Is independently owned and operated; (2) is not dominant 
in its field of operation; and (3) satisfies any additional criteria 
established by the Small Business Administration (SBA).
    32. The proposals in the NPRM apply to entities providing 
international common carrier services pursuant to section 214 of the 
Act; entities providing international wireless common carrier services 
under section 309 of the Act; entities providing common carrier 
satellite services under section 309 of the Act; and entities licensed 
to construct and operate submarine cables under the Cable Landing 
License Act. The Commission has not developed a small business size 
standard directed specifically toward these entities. As described 
below, such entities fit within larger categories for which the SBA has 
developed size standards.
    33. The proposals in the NPRM apply to a mixture of both large and 
small entities. The Commission has not developed a small business size 
standard directed specifically toward these entities. However, as 
described below, these entities fit into larger categories for which 
the SBA has developed size standards that provide these facilities or 
services.
    1. Facilities-based Carriers.
    2. IMTS Resale Providers.
    3. Wireless Carriers and Service Providers.
    4. Wireless Telecommunications Carriers (except Satellite).
    5. Wireless Communications Services.
    6. Providers of Interconnected VoIP services.
    7. Spot Market Operators.
    8. Providers of International Telecommunications Transmission 
Facilities.
    9. Satellite Telecommunications Providers.
    10. Operators of Non-Common Carrier Undersea Cable Systems.
    11. Incumbent Local Exchange Carriers.
    34. The NPRM proposes a number of rule changes that would affect 
reporting, recordkeeping and other compliance requirements for entities 
providing international common carrier services pursuant to section 214 
of the Communications Act; entities providing international wireless 
common carrier services under Section 309 of the Act; entities 
providing common carrier satellite services under section 309 of the 
Act; and entities licensed to construct and operate submarine cables 
under the Cable Landing License Act. The NPRM proposes to eliminate, 
further streamline, or modify the current international reporting 
requirements to reduce the burdens for both small and large carriers. 
Specifically, the NPRM proposes to eliminate the annual Traffic and 
Revenue Reports, and seeks comment on ways to further streamline the 
Circuit Capacity Reports. As a result, the proposals in the NPRM will 
be financially beneficial and not impose any significant economic 
burdens on small carriers.
    35. The RFA requires an agency to describe any significant, 
specifically small business, alternatives that it has considered in 
reaching its proposed approach, which may include the following four 
alternatives (among others): ``(1) the establishment of differing 
compliance or reporting requirements or timetables that take into 
account the resources available to small entities; (2) the 
clarification, consolidation, or simplification of compliance and 
reporting requirements under the rules for such small entities; (3) the 
use of performance rather than design standards; and (4) an exemption 
from coverage of the rule, or any part thereof, for such small 
entities.''
    36. In this NPRM, the proposed changes in the international 
reporting requirements would lessen the burden on carriers, including 
small entities. We propose to eliminate the annual Traffic and Revenue 
Reports, and seek comment on ways to further streamline the Circuit 
Capacity Reports. After reviewing the record in this biennial review 
proceeding, and based on our own understanding of the competitive 
nature of the international services sector, we believe that the 
international traffic and revenue data collection is no longer 
necessary, and we propose to eliminate this reporting requirement. We 
recognize that there may be occasions when we need international 
services market information, and seek comment on how to obtain this 
information in the most cost effective and least burdensome way. We are 
also considering alternatives that would provide the Commission with 
important information for fulfilling its statutory obligations but 
would reduce the burdens on small businesses. With respect to the 
annual Circuit Capacity Reports, we believe they may warrant retention, 
and do not propose their elimination. We do, however, explore whether 
there are ways we could further streamline or modify this data 
collection while meeting our statutory obligations.
    37. The NPRM seeks comment from all interested parties. The 
Commission

[[Page 18096]]

is aware that some of the proposals under consideration may impact 
small entities. Small entities are encouraged to bring to the 
Commission's attention any specific concerns they may have with the 
proposals outlined in the NPRM.
    38. The Commission expects to consider the economic impact on small 
entities, as identified in comments filed in response to the NPRM, in 
reaching its final conclusions and taking action in this proceeding.

List of Subjects

47 CFR Part 43

    Communications common carriers, Reporting and recordkeeping 
requirements, Telephone.

47 CFR Part 63

    Communications common carriers, Reporting and recordkeeping 
requirements, Telephone.

Katura Jackson,
Federal Register Liaison Officer, Office of the Secretary.

Proposed Rules

    For the reasons discussed in the preamble, the Federal 
Communications Commission proposes to amend 47 CFR parts 43 and 63 as 
follows:

PART 43--REPORTS OF COMMUNICATION COMMON CARRIERS, PROVIDERS OF 
INTERNATIONAL SERVICES AND CERTAIN AFFILIATES

0
1. The authority citation for Part 43 is revised to read as follows:

    Authority:  47 U.S.C. 154; Telecommunications Act of 1996; Pub. 
Law 104-104, sec. 402(b)(2)(B), (c), 110 Stat. 56 (1996) as amended 
unless otherwise noted. 47 U.S.C. 211, 219, 220, as amended; Cable 
Landing License Act of 1921, 47 U.S.C. 34-39.


Sec.  43.62   [Removed and Reserved]

0
2. Section 43.62 is removed and reserved.
0
3. Add Sec.  43.82 to read as follows:


Sec.  43.82  Circuit Capacity Reports.

    (a) Not later than March 31 of each year:
    (1) Satellite and Terrestrial Circuits. Each facilities-based 
common carrier shall file a report showing its active common carrier 
circuits between the United States and any foreign point as of December 
31 of the preceding calendar year in any terrestrial or satellite 
facility for the provision of service to an end user or resale carrier, 
which includes active circuits used by themselves or their affiliates. 
Each non-common carrier satellite licensee shall file a report showing 
its active circuits between the United States and any foreign point as 
of December 31 of the preceding calendar year sold or leased to any 
customer, including themselves or their affiliates, other than a 
carrier authorized by the Commission to provide U.S. international 
common carrier services.
    (2) International Submarine Cable Capacity. (i) The licensee(s) of 
a submarine cable between the United States and any foreign point shall 
file a report showing the capacity of the submarine cable as of 
December 31 of the preceding calendar year. The licensee(s) shall also 
file a report showing the planned capacity of the submarine cable (the 
intended capacity of the submarine cable two years from December 31 of 
the preceding calendar year). Only one cable landing licensee shall 
file the capacity data for each submarine cable. For cables with more 
than one licensee, the licensees shall determine which licensee will 
file the reports.
    (ii) Each cable landing licensee and common carrier shall file a 
report showing its capacity on submarine cables between the United 
States and any foreign point as of December 31 of the preceding 
calendar year.

    Note to Paragraph (a): United States is defined in Section 3 of 
the Communications Act of 1934, as amended, 47 U.S.C. 153.

    (b) A Registration Form, containing information about the filer, 
such as address, phone number, email address, etc., shall be filed with 
each report. The Registration Form shall include a certification 
enabling the filer to check a box to indicate that the filer requests 
that its circuit capacity data be treated as confidential consistent 
with Section 0.459(b) of the Commission's rules.
    (c) Filing Manual. Authority is delegated to the Chief, 
International Bureau to prepare instructions and reporting requirements 
for the filing of these reports prepared and published as a Filing 
Manual. The information required under this Section shall be furnished 
in conformance with the instructions and reporting requirements in the 
Filing Manual.

PART 63--EXTENSION OF LINES, NEW LINES AND DISCONTINUANCE, 
REDUCTION, OUTAGE AND IMPAIRMENT OF SERVICE BY COMMON CARRIERS; AND 
GRANTS OF RECOGNIZED PRIVATE OPERATING AGENCY STATUS

0
4. The authority citation for part 63 continues to read as follows:

    Authority:  Sections 1, 4(i), 4(j), 10, 11, 201-205, 214, 218, 
403 and 651 of the Communications Act of 1934, as amended, 47 U.S.C. 
151, 154(i), 154(j), 160, 201-205, 214, 218, 403, and 571, unless 
otherwise noted.

0
5. Amend Sec.  63.10 by revising paragraph (c)(2) to read as follows:


Sec.  63.10  Regulatory classification of U.S. international carriers.

* * * * *
    (c) * * *
    (2) File quarterly reports on traffic and revenue within 90 days 
from the end of each calendar quarter.
* * * * *
0
6. Amend Sec.  63.21 by removing and reserving paragraph (d) to read as 
follows:


Sec.  63.21  Conditions applicable to all international Section 214 
authorizations.

    (d) Reserved.
0
7. Amend Sec.  63.22 by revising paragraph (e) to read as follows:


Sec.  63.22   Facilities-based international common carriers.

* * * * *
    (e) The carrier shall file annual international circuit capacity 
reports as required by Sec.  43.82 of this chapter.
* * * * *
[FR Doc. 2017-07547 Filed 4-14-17; 8:45 am]
 BILLING CODE 6712-01-P



                                                    18090

                                                    Proposed Rules                                                                                                 Federal Register
                                                                                                                                                                   Vol. 82, No. 72

                                                                                                                                                                   Monday, April 17, 2017



                                                    This section of the FEDERAL REGISTER                      For detailed instructions on                         Commission’s Secretary, Office of the
                                                    contains notices to the public of the proposed          submitting comments and additional                     Secretary, Federal Communications
                                                    issuance of rules and regulations. The                  information on the rulemaking process,                 Commission.
                                                    purpose of these notices is to give interested          see the SUPPLEMENTARY INFORMATION                        • All hand-delivered or messenger-
                                                    persons an opportunity to participate in the            section of this document.                              delivered paper filings for the
                                                    rule making prior to the adoption of the final                                                                 Commission’s Secretary must be
                                                    rules.                                                  FOR FURTHER INFORMATION CONTACT:
                                                                                                            David Krech or Arthur Lechtman,                        delivered to FCC Headquarters at 445
                                                                                                            Telecommunications and Analysis                        12th St. SW., Room TW–A325,
                                                    FEDERAL COMMUNICATIONS                                  Division, International Bureau, FCC,                   Washington, DC 20554. The filing hours
                                                    COMMISSION                                              (202) 418–1480 or via email to                         are 8:00 a.m. to 7:00 p.m. All hand
                                                                                                            David.Krech@fcc.gov or                                 deliveries must be held together with
                                                    47 CFR Parts 43 and 63                                  Arthur.Lechtman@fcc.gov. On PRA                        rubber bands or fasteners. Any
                                                                                                            matters, contact Cathy Williams, Office                envelopes and boxes must be disposed
                                                    [IB Docket Nos. 17–55 and 16–131, FCC                                                                          of before entering the building.
                                                    17–28]                                                  of the Managing Director, FCC, (202)
                                                                                                            418–2918 or via email to                                 • Commercial overnight mail (other
                                                    Reporting Requirements for U.S.                         Cathy.Williams@fcc.gov.                                than U.S. Postal Service Express Mail
                                                    Providers of International Services;                                                                           and Priority Mail) must be sent to 9300
                                                                                                            SUPPLEMENTARY INFORMATION: This is a
                                                                                                                                                                   East Hampton Drive, Capitol Heights,
                                                    2016 Biennial Review of                                 summary of the Commission’s Notice of                  MD 20743.
                                                    Telecommunications Regulations                          Proposed Rulemaking in IB Docket Nos.                    • U.S. Postal Service first-class,
                                                    AGENCY:  Federal Communications                         16–131 and 17–55, adopted on March                     Express, and Priority mail must be
                                                    Commission.                                             23, 2017 and released on March 23,                     addressed to 445 12th Street SW.,
                                                                                                            2017. In the Notice of Proposed                        Washington DC 20554.
                                                    ACTION: Proposed rule.
                                                                                                            Rulemaking, the Commission seeks
                                                                                                            comment on the federal need for the                    Synopsis
                                                    SUMMARY:   In this Notice of Proposed
                                                    Rulemaking (NPRM), the Federal                          international services reporting                          1. In this NPRM, the Commission
                                                    Communications Commission                               requirements set forth in Section 43.62                seeks comment on the federal need for
                                                    (Commission) seeks comment on the                       of the Commission’s rules. The full text               the international services reporting
                                                    federal need for the international                      of this document is available for                      requirements set forth in section 43.62
                                                    services reporting requirements set forth               inspection and copying during normal                   of the Commission’s rules. See
                                                    in the Commission’s rules. Those                        business hours in the FCC Reference                    Reporting Requirements for U.S.
                                                    reporting requirements are the annual                   Center, 445 12th Street SW.,                           Providers of International
                                                    Traffic and Revenue Reports and the                     Washington, DC 20554. The document                     Telecommunications Services;
                                                    Circuit Capacity Reports. The                           also is available for download over the                Amendment of part 43 of the
                                                    Commission believes these reports are                   Internet at: https://www.fcc.gov/                      Commission’s Rules, IB Docket No. 04–
                                                    no longer necessary in their current                    document/section-4362-nprm.                            112, Second Report and Order, 78 FR
                                                    form. The Commission proposes to                                                                               15615 (2013). Those reporting
                                                                                                            Comment Filing Procedures
                                                    eliminate the annual Traffic and                                                                               requirements fall into two categories.
                                                    Revenue Reports altogether, and seeks                      Pursuant to 47 CFR 1.415, 1.419,                    First, the Traffic and Revenue Reports
                                                    comment on whether there are ways to                    interested parties may file comments                   require providers of international
                                                    further streamline the Circuit Capacity                 and reply comments on or before the                    telecommunications services to report
                                                    Reports.                                                dates indicated above. Comments may                    annually their traffic and revenue for
                                                                                                            be filed using the Commission’s                        international voice services,
                                                    DATES:  Submit comments on or before                    Electronic Comment Filing System                       international miscellaneous services,
                                                    May 17, 2017, and replies on or before                  (ECFS). See Electronic Filing of                       and international common carrier
                                                    June 1, 2017.                                           Documents in Rulemaking Proceedings,                   private lines. Second, the Circuit
                                                    ADDRESSES: You may submit comments,                     63 FR 24121 (1998).                                    Capacity Reports require providers of
                                                    identified by IB Docket Nos. 16–131 and                    • Electronic Filers: Comments may be                international telecommunications
                                                    17–55, by any of the following methods:                 filed electronically using the Internet by             services to file annual reports
                                                       • Federal eRulemaking Portal: http://                accessing the Commission’s ECFS Web                    identifying the submarine cable,
                                                    www.regulations.gov. Follow the                         site at http://apps.fcc.gov/ecfs/.                     satellite, and terrestrial capacity
                                                    instructions for submitting comments.                      • Paper Filers: Parties who choose to               between the United States and foreign
                                                       • Federal Communications                             file by paper must file an original and                points. The Commission believes these
                                                    Commission’s ECFS Web site: http://                     one copy of each filing. If more than one              reports are no longer necessary in their
                                                    fjallfoss.fcc.gov/ecfs2/. Follow the                    docket or rulemaking number appears in                 current form. The Commission proposes
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                                                    instructions for submitting comments.                   the caption of this proceeding, filers                 to eliminate the annual Traffic and
                                                       • People with Disabilities: Contact the              must submit two additional copies for                  Revenue Reports altogether, and seeks
                                                    FCC to request reasonable                               each additional docket or rulemaking                   comment on whether there are ways to
                                                    accommodations (accessible format                       number. Filings can be sent by hand or                 further streamline the Circuit Capacity
                                                    documents, sign language interpreters,                  messenger delivery, by commercial                      Reports.
                                                    CART, etc.) by email to FCC504@                         overnight courier, or by first-class or                   2. Traffic and Revenue Reports.
                                                    fcc.gov, phone: 202–418–0530 (voice),                   overnight U.S. Postal Service mail. All                Currently, any person or entity that
                                                    tty: 202–418–0432.                                      filings must be addressed to the                       holds an international section 214


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                                                                             Federal Register / Vol. 82, No. 72 / Monday, April 17, 2017 / Proposed Rules                                            18091

                                                    authorization to provide International                  Miscellaneous Services for which they                  world-total counts of 64 kilobits per
                                                    Telecommunications Services (ITS)                       had $5 million or more in revenue.                     second (kbps) circuit units. In addition,
                                                    and/or any person or entity that is                        3. Historically, the primary role of the            non-common carrier satellite operators
                                                    engaged in the provision of                             international Traffic and Revenue                      are required to report a world-total
                                                    Interconnected Voice over Internet                      Reports was to monitor settlement rates.               count of circuits used by themselves or
                                                    Protocol (VoIP) Services Connected to                   The reports were important in the                      their affiliates, or sold or leased to any
                                                    the Public Switched Telephone Network                   development and enforcement of the                     customer as of December 31 of the
                                                    (PSTN) between the United States and                    Commission’s benchmark policy,                         reporting period, other than to an
                                                    any foreign point (together, Filing                     requiring international settlement rates               international common carrier
                                                    Entities) must file an annual Traffic and               on particular routes to fall below                     authorized by the Commission to
                                                    Revenue Report. ITS refers to                           competitive benchmarks. International                  provide U.S. international common
                                                    telecommunications service between the                  Settlement Rates, IB Docket No. 96–261,                carrier services.
                                                    United States and a foreign point.                      Report and Order, 62 FR 45758 (1997)                      5. The Circuit Capacity Reports show
                                                                                                            (Benchmarks Order). As the                             the level of facilities-based competition
                                                    Interconnected VoIP Service Connected
                                                                                                            international telecommunications sector                for the major U.S.-international routes,
                                                    to the PSTN refers to service between
                                                                                                            has liberalized and competition has                    and can help policy-makers and
                                                    the United States and any foreign point
                                                                                                            grown, the Commission has determined                   industry determine whether there is and
                                                    that: (1) Enables real-time, two-way                    that most routes were competitive                      will be sufficient capacity to handle
                                                    voice communications; (2) requires a                    based, in large part, on the Traffic and               demand for telecommunications on a
                                                    broadband connection from the user’s                    Revenue Reports; data from these                       specific U.S.-international route. The
                                                    location; (3) requires Internet Protocol-               reports thus allowed the Commission to                 Commission has used the data in
                                                    compatible customer premise                             end its International Settlements Policy.              analyzing proposed transactions in the
                                                    equipment; and (4) permits users                        See International Settlements Policy                   U.S.-international services markets,
                                                    generally to receive calls that originate               Reform et al., IB Docket Nos. 11–80, et                particularly with respect to whether a
                                                    on the PSTN or to terminate calls to the                al., Report and Order, 78 FR 11109                     transaction would affect facilities-based
                                                    PSTN. Filing Manual for section 43.62                   (2013); International Settlements Policy               competition on any particular U.S.-
                                                    Annual Reports (IB Feb. 2016) (section                  Reform; International Settlement Rates,                international route(s). The data are used
                                                    43.62 Filing Manual). The information                   IB Docket Nos. 02–324, 96–261, First                   to determine whether entry by foreign
                                                    submitted for this annual report covers:                Report and Order, 69 FR 23151 (2004).                  companies will benefit or adversely
                                                    (1) International Calling Service (ICS);                   4. Circuit Capacity Reports. The                    affect competition.
                                                    (2) International Private Line Service;                 Circuit Capacity Reports help the                         6. The Commission also uses the data
                                                    and (3) International Miscellaneous                     Commission understand the U.S.-                        for national security and public safety
                                                    Services. ICS is defined as international               international transport markets. The                   purposes, to ensure that U.S.
                                                    message telephone service (IMTS) and                    Commission receives two types of data                  international telecommunications are
                                                    Interconnected VoIP Connected to the                    regarding submarine cables: (1)                        safe from disruption, and to provide
                                                    PSTN, including International Call                      Submarine cable operators report the                   information about key routes and
                                                    Completion Service for IMTS or                          available and planned capacity of their                whether there are alternative cables or
                                                    Interconnected VoIP Connected to the                    submarine cable systems and (2)                        satellite facilities available to provide
                                                    PSTN. IMTS consists of                                  common carriers and submarine cable                    communications to specific locations.
                                                    telecommunications services (including                  licensees report the capacity that they                The data provide information on
                                                    voice and low-speed dial-up data)                       own or lease on a submarine cable.                     ownership and control of submarine
                                                    provided over the public switched                       Submarine cable landing licensees are                  cable capacity, to help national security
                                                    networks of U.S. international carriers.                required to file available and planned                 agencies assess the safety and integrity
                                                    International Private Line Service is                   capacity information for each cable                    of U.S.-international
                                                    defined as Private Line Service between                 system as of December 31 of the                        telecommunications infrastructure. The
                                                                                                            reporting period. Any U.S. international               Commission also uses the terrestrial,
                                                    the United States and a foreign point.
                                                                                                            common carrier or cable landing                        satellite, and submarine cable capacity
                                                    Private Line Service refers to making
                                                                                                            licensee that owned or leased capacity                 data to administer the annual regulatory
                                                    available to a customer on a common
                                                                                                            on a submarine cable between the                       fees established in section 9 of the
                                                    carrier basis a circuit for a specified                 United States and any foreign point on                 Communications Act of 1934, as
                                                    period of time for the customer’s                       December 31 of the reporting period is                 amended (the Act). 47 U.S.C. 159.
                                                    exclusive use. International                            required to file capacity amounts for the                 7. Biennial Review. On November 3,
                                                    Miscellaneous Service refers to any                     following categories: (1) Owned                        2016, the Commission released a Public
                                                    international telecommunications                        capacity; (2) net indefeasible rights-of-              Notice seeking comment on the 2016
                                                    service other than ICS and International                use (IRUs); (3) net inter-carrier                      biennial review of our
                                                    Private Line Service. Section 43.62                     leaseholds (ICLs); (4) net capacity held               telecommunications regulations
                                                    Filing Manual. Each person or entity                    (i.e., the total of categories (1) through             pursuant to section 11 of the Act. 47
                                                    that holds an international section 214                 (3)); (5) activated capacity; and (6) non-             U.S.C. 161; 31 FCC Rcd 12166 (2016).
                                                    authorization, whether or not it                        activated capacity. Section 43.62 Filing               Several parties recommend that we
                                                    provided any ITS during the preceding                   Manual. The Commission also receives                   further streamline or eliminate the
                                                    calendar year, must file at least a                     world total circuit data for terrestrial               reporting requirements in section 43.62
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                                                    registration form and services checklist                and satellite facilities. Each facilities-             of the Commission’s rules, and no party
                                                    indicating whether it provided                          based common carrier is required to file               wrote in support of retaining these
                                                    international service the previous year.                a report showing its active common                     requirements.
                                                    Filing Entities that only had $5 million                carrier terrestrial or satellite circuits                 8. DISCUSSION. After reviewing the
                                                    or less in ICS resale revenues need only                between the United States and any                      record in this biennial review
                                                    file the registration form and services                 foreign point as of December 31 of the                 proceeding, and based on our own
                                                    checklist. Filing Entities report                       preceding calendar year. The terrestrial               understanding of the competitive nature
                                                    information on International                            and satellite circuits are reported in                 of the international services sector, we


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                                                    18092                    Federal Register / Vol. 82, No. 72 / Monday, April 17, 2017 / Proposed Rules

                                                    believe that the international traffic and              and submitting the data for the 2015                   market. Although we collect data from
                                                    revenue data collection is no longer                    annual Traffic and Revenue Reports. We                 interconnected VoIP providers (354
                                                    necessary, and we propose to eliminate                  estimate that Commission staff will                    interconnected VoIP providers filed
                                                    this reporting requirement. We instead                  spend 2,218 hours reviewing and                        Traffic and Revenue Reports in 2015),
                                                    believe that more targeted collections, in              publishing the data at a total cost of at              we do not mandate reporting from non-
                                                    response to actual U.S. carrier                         least $112,076. We seek comment on                     interconnected VoIP providers, many of
                                                    complaints, may provide the                             these estimates and ask commenters to                  whose services are free to the customer.
                                                    Commission with all the information it                  provide us with the cost of preparing                  This indicates that overall consumer
                                                    needs.                                                  and submitting the Traffic and Revenue                 rates for international voice traffic may
                                                       9. In contrast, we believe that it might             Reports. In particular, we seek comment                be below those indicated by the reports.
                                                    serve the public interest to retain the                 on the actual time spent to produce the                As use of those services continues to
                                                    Circuit Capacity Reports. We thus                       data and ask commenters to provide us                  increase, it calls into question the
                                                    explore whether, instead of eliminating                 with an average wage rate. AT&T                        continuing value of the overall traffic
                                                    these reports, there are ways we could                  Services Inc., for example, reported that              and revenue data, since such data reveal
                                                    streamline or modify this data collection               nearly 300 hours were required to                      only a fraction of the overall picture of
                                                    while continuing to meet our statutory                  prepare its Traffic and Revenue Report.                international communications, a
                                                    obligations.                                            We also seek comment on the                            fraction that is likely to grow smaller
                                                       10. Traffic and Revenue Reports. We                  complexity involved in providing data                  over time. To the extent information is
                                                    propose to eliminate the current                        to the Commission. Do commenters                       available, we seek comment on what
                                                    international Traffic and Revenue                       have the information required for filing               portion of international
                                                    Reports requirement. We believe that                    readily available from their internal                  telecommunications services is
                                                    the costs of this data collection—which                 systems? Do commenters need to                         provided by non-interconnected VoIP
                                                    are significant both for filers and for the             maintain redundant systems or perform                  services, the projected future growth of
                                                    Commission—now exceed the benefits                      complex analysis on their internal data                those services, and their impact on the
                                                    of the information. We seek comment on                  in order to submit their reports? What                 relevance and accuracy of our current
                                                    what effect elimination of this reporting               impact, if any, does the complexity of                 Traffic and Revenue Reports.
                                                    requirement will have on U.S.                           analysis required have on the reliability
                                                    consumers and U.S. carriers, and                                                                                  14. Settlement rates to most foreign
                                                                                                            of the data submitted?
                                                    whether there may be less burdensome                                                                           points are also well below the
                                                                                                               12. Given the increasing level of
                                                    ways for the Commission to obtain data                  competition on most U.S-international                  benchmark rate established for that
                                                    in order to fulfill its statutory                       routes, we believe that the benefits of                country, indicating that competition has
                                                    obligations and protect U.S. interests.                 the Traffic and Revenue Reports have so                driven the rate closer to cost-based
                                                       11. The international traffic and                    diminished that they no longer                         levels. Though some routes are still
                                                    revenue reporting requirement appears                   outweigh the costs. In the last 20 years,              subject to the anti-competitive effects of
                                                    to place a significant burden on the                    since the implementation of the World                  foreign monopolist providers and
                                                    filing entities and the Commission.                     Trade Organization (WTO) Basic                         government regulation, for the most part
                                                    Although the Commission does not have                   Telecom Agreement and the                              U.S.-international routes are
                                                    firm numbers on the costs to industry to                establishment of the Commission’s                      competitive. In a recent presentation to
                                                    prepare and submit the reports, we have                 benchmarks settlements policy, the                     the Expert Group on International
                                                    developed estimates of the burdens.                     international telecommunications sector                Telecommunication Regulations,
                                                    These estimates have been derived by                    has become much more competitive on                    International Telecommunication Union
                                                    applying the number of traffic and                      both the U.S. and foreign ends, as                     (ITU), the United States noted that
                                                    revenue filings in 2016 to the burden                   government regulations in the United                   ‘‘[a]ccording to the ITU, a clear majority
                                                    estimates in the Paperwork Reduction                    States and abroad were relaxed, and                    of countries in all six ITU regions have
                                                    Act review process for the annual                       enabled entry. As a result, both U.S.-                 competitive markets covering elements
                                                    Traffic and Revenue Reports and Circuit                 international average settlement rates                 that are essential to the provision of
                                                    Capacity Reports. In 2016, 1,888 entities               and average IMTS revenue per minute                    international telecommunication
                                                    filed information regarding their 2015                  have dropped dramatically. IMTS is                     services—domestic fixed long-distance,
                                                    international traffic and revenue. Of                   defined as the provision of message                    mobile, leased lines, and international
                                                    those, 1,822 filed only a registration                  telephone service (MTS) between the                    gateways. For example, according to
                                                    form and did not file any data because                  United States and a foreign point. The                 ITU’s 2015 ICTEYE, a majority of
                                                    they either did not have any                            term MTS refers to the transmission and                countries have various levels of
                                                    international revenues in 2015, or only                 reception of speech and low-speed dial-                competitive markets in domestic and
                                                    had less than $5 million in ICS resale                  up data over the PSTN. Section 43.62                   international long distance services and
                                                    revenue. Sixty-six filed data for ICS                   Filing Manual. Average settlement rates                more than 75 percent of ITU Member
                                                    facilities-based services, International                paid out by U.S. carriers have decreased               States have competitive international
                                                    Private Line Services and/or                            from $0.18 per minute in 2000 to $0.03                 gateways and leased line markets.’’ This
                                                    International Miscellaneous Services,                   per minute in 2014, an 83 percent drop.                is due to relaxed government
                                                    and 47 of the 66 filed revisions. In 2014,              Average facilities ICS revenue per                     regulations, entry by new carriers, entry
                                                    the Commission estimated that filers                    minute, which is a general measure of                  by existing incumbents into other
                                                    spend one hour preparing and filing the                 international calling prices, has                      countries’ markets, technological
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                                                    registration form; two hours preparing                  decreased from $0.47 per minute in                     developments that have enhanced ease
                                                    and filing world total ICS resale data;                 2000 to $0.04 per minute in 2014,                      of entry, and, perhaps most significantly
                                                    150 hours preparing and submitting                      indicating a drop of 85 percent in the                 for the future, the development of VoIP-
                                                    route-by-route data for facilities-based                price to consumers for international                   based alternatives to traditional
                                                    ICS and or international private lines;                 calling.                                               international switched services, such as
                                                    and 50 hours preparing and filing                          13. Additionally, the data we collect               Skype, FaceTime, Viber, or WhatsApp.
                                                    revised data. In total, we estimate that                may actually understate the                            Attempts to raise settlement rates by a
                                                    industry spent 14,770 hours preparing                   competitiveness of the international                   foreign carrier, cartel, or government


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                                                                             Federal Register / Vol. 82, No. 72 / Monday, April 17, 2017 / Proposed Rules                                            18093

                                                    can be countered by carriers using our                  solicit additional feedback on any issues              retain significant value. For one, the
                                                    benchmark complaint process, or by                      we should consider with regard to                      Circuit Capacity Reports give the agency
                                                    consumers switching to VoIP-based                       eliminating the Traffic and Revenue                    a clear understanding of which
                                                    calling services, many of which are free.               Reports.                                               operators have deployed what facilities
                                                    Although the traffic and revenue data                      16. Circuit Capacity Reports. At this               where—the prime information needed
                                                    have been useful for those times when                   time, we believe that retaining the                    for any analysis of facilities-based
                                                    we have investigated anticompetitive                    Circuit Capacity Reports might be                      competition. For another, the Circuit
                                                    behavior on certain routes, these have                  warranted because the benefits appear                  Capacity Reports are used by the
                                                    been relatively infrequent in recent                    to exceed the costs of collecting this                 Commission and the national security
                                                    years, for example, on the U.S.-Fiji route              data. We seek comment on our analysis                  agencies to understand how to protect
                                                    (2013 to present), U.S.-Pakistan route                  and on ways to further streamline our                  and secure this critical international
                                                    (2013–2016), and U.S.-Tonga route                       requirements to minimize the burden on                 infrastructure. For yet another, the
                                                    (2009 to present). Moreover, we can and                 filers while ensuring the Commission                   Commission relies on these reports to
                                                    do request traffic and revenue                          receives the information it needs to                   carry out its statutory obligation to
                                                    information from carriers when a carrier                meet its statutory responsibilities. We                assess regulatory fees on international
                                                    complains of anticompetitive conduct                    propose to delete section 43.62 of the                 bearer circuits. We believe that these
                                                    by a foreign carrier or government on a                 Commission’s rules, which contains                     benefits outweigh the costs of this
                                                    specific route. The Commission has                      both annual Traffic and Revenue                        information collection. We seek
                                                    broad authority to investigate possible                 Reports and the Circuit Capacity                       comment on this analysis, and how the
                                                    anti-competitive activities on U.S.-                    Reports, and place the Circuit Capacity                benefits of the Circuit Capacity Reports
                                                    international routes.                                   Reports in section 43.82 of the                        can best be quantified.
                                                                                                            Commission’s rules.                                       19. We also seek comment on ways to
                                                       15. In eliminating the Traffic and                      17. We seek comment on the burden                   streamline or improve our reporting
                                                    Revenue Reports, is there data and                      imposed by our circuit capacity                        requirements. Have there have been
                                                    information that the Commission would                   reporting requirements. While the                      changes in the international transport
                                                    not be able to obtain to address                        Commission does not have firm                          markets over the past few years that
                                                    instances of anticompetitive conduct on                 numbers on the costs to industry to                    necessitate a reexamination of the type
                                                    a U.S.-international route that adversely               prepare and submit the reports, we have                of information we collect, especially any
                                                    affects U.S. consumers or U.S. carriers?                developed estimates of the burdens.                    changes in the submarine cable
                                                    How could the Commission ascertain                      These estimates have been derived by                   markets? How should we modify the
                                                    which facilities-based carriers have                    applying the number of circuit capacity                collection in a manner that would still
                                                    termination arrangements on a                           filings in 2016 to the burden estimates                allow the Commission to meet its
                                                    particular U.S.-international route in the              in the Paperwork Reduction Act review                  obligations? How would the cost benefit
                                                    absence of reported traffic and revenue                 process for the annual Traffic and                     analysis change with the proposed
                                                    data? We seek comment on whether                        Revenue Reports and Circuit Capacity                   modifications? Should we collect
                                                    there are less burdensome alternatives                  Reports. In 2016, 91 entities filed data               different information that would
                                                    for carriers to provide the Commission                  regarding their circuits as of December                minimize burdens on filers while still
                                                    with information it needs to protect U.S.               31, 2015. Thirty-five reports were filed               providing value to the public, industry,
                                                    consumers and carriers. There are also                  for terrestrial and satellite world total              and the Commission? We recognize that
                                                    international routes which are not fully                circuits; 30 cable operator reports were               the data are used to assess regulatory
                                                    competitive and on which the                            filed; and 72 capacity holder reports                  fees, and seek comment on whether we
                                                    settlement rate is still above the                      were filed. In 2014, the Commission                    should require filers to submit, for
                                                    benchmark rate. For example, according                  estimated that filers spend one hour                   example, the data at the same time as
                                                    to 2014 data on calling to foreign fixed-               preparing and filing the registration                  the fee, rather than as a prelude to the
                                                    line networks, there are 48 above-                      form; one hour preparing and filing                    fee. What other ways can the
                                                    benchmark routes that constitute                        world total terrestrial and/or satellite               Commission minimize burdens on
                                                    approximately 1 percent of total fixed                  circuits; two hours preparing and                      filers? What, if any, alternative or
                                                    minutes and 21 percent of total fixed                   submitting the cable operators report;                 substitutes for the circuit capacity data,
                                                    U.S. settlement payouts worldwide. We                   and 10 hours preparing and filing the                  in particular the submarine cable data,
                                                    seek comment on whether the                             cable capacity holders report. In total,               are available from commercial sources?
                                                    Commission should continue to obtain                    we estimate that industry spent 906                    If data are available from commercial
                                                    information regarding above-benchmark                   hours preparing and submitting the data                sources, are there limitations on the
                                                    rates. If so, what information should the               for the 2015 annual Circuit Capacity                   Commission’s use of that data? We seek
                                                    Commission continue to require? In                      Reports. We estimate that Commission                   comment on this and whether there are
                                                    addition, for those commenters opposed                  staff will spend 372 hours reviewing                   alternative lower cost means of
                                                    to eliminating these reporting                          and publishing the data at a total cost                acquiring circuit capacity data. We also
                                                    requirements, we seek comment on how                    of $22,280. We seek comment on these                   seek comment on whether we could
                                                    they can be further streamlined and                     estimations and ask commenters to                      eliminate the Circuit Capacity Reports,
                                                    whether the Commission should sunset                    provide us with the cost of preparing                  and if so how the Commission could
                                                    some or all of the provisions. For                      and submitting the Circuit Capacity                    continue to perform the functions that
                                                    instance, requiring only route-by-route                 Reports. In particular, we seek comment                the circuit data enable.
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                                                    data from facilities-based carriers and                 on the actual time spent to produce the                   20. We also seek input on two issues
                                                    eliminating the filing requirement for                  data and ask commenters to provide us                  that have become apparent with the
                                                    resale, private line, and miscellaneous                 with an average wage rate.                             most recent filing of Circuit Capacity
                                                    services would greatly reduce the                          18. Although the value of the Circuit               Reports. First, for certain individual
                                                    overall industry burden and would                       Capacity Reports is less than it once was              cables, we have observed a discrepancy
                                                    exempt over 1,800 entities from filing                  with the advent of competition                         between the capacity reported on the
                                                    Traffic and Revenue Reports. We seek                    throughout the international                           cable operators report and the capacity
                                                    comment on all the issues raised and                    marketplace, we believe the reports still              reported on the cable capacity holders


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                                                    18094                    Federal Register / Vol. 82, No. 72 / Monday, April 17, 2017 / Proposed Rules

                                                    report. For example, occasionally, we                   applicable to the Sunshine period                      automated collection techniques or
                                                    find that the cable capacity holders                    applies). Persons making oral ex parte                 other forms of information technology;
                                                    report has higher capacity numbers than                 presentations are reminded that                        and (e) way to further reduce the
                                                    the cable operator report for the same                  memoranda summarizing the                              information collection burden on small
                                                    cable. In those instances, Commission                   presentation must (1) list all persons                 business concerns with fewer than 25
                                                    staff will contact the filers concerning                attending or otherwise participating in                employees. In addition, pursuant to the
                                                    the inconsistencies. What is the cause of               the meeting at which the ex parte                      Small Business Paperwork Relief Act of
                                                    such inconsistencies, and how can we                    presentation was made, and (2)                         2002, Public Law 107–198, see 44 U.S.C.
                                                    best address them?                                      summarize all data presented and                       3506(c)(4), we seek specific comment on
                                                       21. Second, on the cable capacity                    arguments made during the                              how we might ‘‘further reduce the
                                                    holders report, filers are asked to report              presentation. If the presentation                      information collection burden for small
                                                    capacity acquired and relinquished via                  consisted in whole or in part of the                   business concerns with fewer than 25
                                                    indefeasible rights-of-use (IRUs) or                    presentation of data or arguments                      employees.’’
                                                    inter-carrier leaseholds (ICLs) only in                 already reflected in the presenter’s                     26. Statement of Authority. The
                                                    those cases where such transactions are                 written comments, memoranda or other                   proposed action is authorized under
                                                    with another reporting entity. Thus, for                filings in the proceeding, the presenter               Sections 1, 4(i), 4(j), 11, 201–205, 214,
                                                    each entry of capacity acquired by IRU                  may provide citations to such data or                  219–220, 303(r), 309, and 403 of the
                                                    or ICL, there should be a corresponding                 arguments in his or her prior comments,                Communications Act as amended, 47
                                                    entry of capacity relinquished; however,                memoranda, or other filings (specifying                U.S.C. 151, 154(i), 154(j), 161, 201–205,
                                                    this has generally not been the case.                   the relevant page and/or paragraph                     214, 219–220, 303(r), 309, and 403, and
                                                    Should we address this by clarifying the                numbers where such data or arguments                   the Cable Landing License Act of 1921,
                                                    filing instructions? Or should we change                can be found) in lieu of summarizing                   47 U.S.C. 34–39, and 3 U.S.C. 301.
                                                    the instructions so that all IRU and ICL                them in the memorandum. Documents                      Initial Regulatory Flexibility Act
                                                    transactions must be reported,                          shown or given to Commission staff                     Analysis
                                                    regardless of whether the other party is                during ex parte meetings are deemed to
                                                    also a reporting party?                                                                                           27. As required by the Regulatory
                                                                                                            be written ex parte presentations and
                                                       22. As part of the changes adopted in                                                                       Flexibility Act (RFA), the Commission
                                                                                                            must be filed consistent with Section
                                                    2013, filers are allowed to check a box                                                                        has prepared this Initial Regulatory
                                                                                                            1.1206(b) of the Commission’s rules. In
                                                    on the registration form to request                                                                            Flexibility Analysis (IRFA) of the
                                                                                                            proceedings governed by Section 1.49(f)
                                                    confidentiality for their data. In the past,                                                                   possible significant economic impact on
                                                                                                            of the Commission’s rules or for which
                                                    the Commission has published                                                                                   small entities by the policies and rules
                                                                                                            the Commission has made available a                    proposed in this Notice of Proposed
                                                    information on the current and planned                  method of electronic filing, written ex
                                                    capacity of individual U.S.-international                                                                      Rule Making (NPRM). We request
                                                                                                            parte presentations and memoranda                      written public comments on this IRFA.
                                                    submarine cables. Several cable
                                                                                                            summarizing oral ex parte                              Commenters must identify their
                                                    operators have recently requested
                                                                                                            presentations, and all attachments                     comments as responses to the IRFA and
                                                    confidential treatment for their cable
                                                                                                            thereto, must be filed through the                     must file the comments by the deadlines
                                                    operator data. To minimize burdens, we
                                                                                                            electronic comment filing system                       provided in this NPRM. The
                                                    seek comment on whether, for example,
                                                                                                            available for that proceeding, and must                Commission will send a copy of the
                                                    in the future the Commission should
                                                                                                            be filed in their native format (e.g., .doc,           NPRM, including this IRFA, to the Chief
                                                    publish such data on a consolidated
                                                                                                            .xml, .ppt, searchable .pdf). Participants             Counsel for Advocacy of the Small
                                                    regional (and not cable-specific) basis.
                                                                                                            in this proceeding should familiarize                  Business Administration.
                                                    We seek comment on whether releasing
                                                    only regional data to the public, without               themselves with the Commission’s ex                       28. The Commission initiated this
                                                    identifying individual cable operators,                 parte rules.                                           NPRM to assess the federal need for the
                                                    will affect the usefulness of the Circuit                  25. Paperwork Reduction Act. This                   international reporting requirements set
                                                    Capacity Reports, and whether this                      document contains proposed new and                     forth in section 43.62 of the
                                                    practice would address concerns                         modified information collection                        Commission’s rules. On November 3,
                                                    operators have regarding the                            requirements. The Commission, as a                     2016, the Commission released a Public
                                                    confidentiality of data submitted in                    part of its continuing effort to reduce                Notice seeking comment on the 2016
                                                    such reports. We note that the                          paperwork burdens, invites the general                 biennial review of our
                                                    Commission would still have the                         public and the Office of Management                    telecommunications regulations
                                                    information on a cable-by-cable basis.                  and Budget to comment on the                           pursuant to section 11 of the
                                                       23. Finally, we propose a change to                  information collection requirements                    Communications Act of 1934, as
                                                    the confidentiality rule for circuit                    contained in this document, as required                amended (the Act). Section 11 requires
                                                    capacity to clarify that requests for                   by the Paperwork Reduction Act of                      the Commission to (1) review biennially
                                                    confidential treatment will be consistent               1995, Public Law 104–13. Public and                    its regulations ‘‘that apply to the
                                                    with Section 0.459 of the Commission’s                  agency comments are due June 16, 2017.                 operations or activities of any provider
                                                    rules, and seek comment on this                         Comments should address: (a) Whether                   of telecommunications service,’’ and (2)
                                                    proposal.                                               the proposed collection of information                 ‘‘determine whether any such regulation
                                                       24. Ex Parte Rules. The proceeding                   is necessary for the proper performance                is no longer necessary in the public
                                                    this NPRM initiates shall be treated as                 of the functions of the Commission,                    interest as the result of meaningful
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                                                    a ‘‘permit-but-disclose’’ proceeding in                 including whether the information shall                economic competition between
                                                    accordance with the Commission’s ex                     have practical utility; (b) the accuracy of            providers of such service.’’ Section 11
                                                    parte rules. Persons making ex parte                    the Commission’s burden estimates; (c)                 directs the Commission to repeal or
                                                    presentations must file a copy of any                   ways to enhance the quality, utility, and              modify any regulation that it finds are
                                                    written presentation or a memorandum                    clarity of the information collected; (d)              no longer in the public interest. While
                                                    summarizing any oral presentation                       ways to minimize the burden of the                     the Commission streamlined and
                                                    within two business days after the                      collection of information on the                       modernized the Part 43 international
                                                    presentation (unless a different deadline               respondents, including the use of                      reporting requirements in 2013, several


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                                                                             Federal Register / Vol. 82, No. 72 / Monday, April 17, 2017 / Proposed Rules                                            18095

                                                    parties recommend that we further                       establishes one or more definitions of                 construct and operate submarine cables
                                                    streamline or eliminate these rules.                    such term which are appropriate to the                 under the Cable Landing License Act.
                                                       29. The objectives of this proceeding                activities of the agency and publishes                 The NPRM proposes to eliminate,
                                                    are to eliminate, further streamline, or                such definition(s) in the Federal                      further streamline, or modify the current
                                                    modify the current traffic and revenue                  Register.’’ A small business concern is                international reporting requirements to
                                                    reporting requirements and further                      one which: (1) Is independently owned                  reduce the burdens for both small and
                                                    streamline or modify circuit capacity                   and operated; (2) is not dominant in its               large carriers. Specifically, the NPRM
                                                    reporting requirements that apply to                    field of operation; and (3) satisfies any              proposes to eliminate the annual Traffic
                                                    carriers providing international services               additional criteria established by the                 and Revenue Reports, and seeks
                                                    pursuant to section 43.62 of the                        Small Business Administration (SBA).                   comment on ways to further streamline
                                                    Commission’s rules. Specifically, the                      32. The proposals in the NPRM apply                 the Circuit Capacity Reports. As a result,
                                                    Commission proposes to eliminate the                    to entities providing international                    the proposals in the NPRM will be
                                                    annual Traffic and Revenue Reports,                     common carrier services pursuant to                    financially beneficial and not impose
                                                    and seeks comment on ways to further                    section 214 of the Act; entities                       any significant economic burdens on
                                                    streamline the annual Circuit Capacity                  providing international wireless                       small carriers.
                                                    Reports. After reviewing the record in                  common carrier services under section                     35. The RFA requires an agency to
                                                    this biennial review proceeding, and                    309 of the Act; entities providing                     describe any significant, specifically
                                                    based on our own understanding of the                   common carrier satellite services under                small business, alternatives that it has
                                                    competitive nature of the international                 section 309 of the Act; and entities                   considered in reaching its proposed
                                                    services sector, we believe that the                    licensed to construct and operate                      approach, which may include the
                                                    international traffic and revenue data                  submarine cables under the Cable                       following four alternatives (among
                                                    collection is no longer necessary, and                  Landing License Act. The Commission                    others): ‘‘(1) the establishment of
                                                    we propose to eliminate this reporting                  has not developed a small business size                differing compliance or reporting
                                                    requirement. We recognize that there                    standard directed specifically toward                  requirements or timetables that take into
                                                    may be occasions when we need                           these entities. As described below, such               account the resources available to small
                                                    international services market                           entities fit within larger categories for              entities; (2) the clarification,
                                                    information, and seek comment on how                    which the SBA has developed size                       consolidation, or simplification of
                                                    to obtain this information in the most                  standards.                                             compliance and reporting requirements
                                                    cost effective and least burdensome                        33. The proposals in the NPRM apply                 under the rules for such small entities;
                                                    way. With respect to the annual Circuit                 to a mixture of both large and small                   (3) the use of performance rather than
                                                    Capacity Reports, we believe they may                   entities. The Commission has not                       design standards; and (4) an exemption
                                                    warrant retention, and do not propose                   developed a small business size                        from coverage of the rule, or any part
                                                    their elimination. We do, however,                      standard directed specifically toward                  thereof, for such small entities.’’
                                                    explore whether there are ways we                       these entities. However, as described                     36. In this NPRM, the proposed
                                                    could further streamline or modify this                 below, these entities fit into larger                  changes in the international reporting
                                                    data collection while meeting our                       categories for which the SBA has                       requirements would lessen the burden
                                                    statutory obligations.                                  developed size standards that provide                  on carriers, including small entities. We
                                                       30. Currently, section 43.62(b) of the               these facilities or services.                          propose to eliminate the annual Traffic
                                                    Commission’s rules requires providers                      1. Facilities-based Carriers.                       and Revenue Reports, and seek
                                                    of international services to report                        2. IMTS Resale Providers.                           comment on ways to further streamline
                                                    annually their traffic and revenue for                     3. Wireless Carriers and Service                    the Circuit Capacity Reports. After
                                                    international voice services,                           Providers.                                             reviewing the record in this biennial
                                                    international miscellaneous services,                      4. Wireless Telecommunications                      review proceeding, and based on our
                                                    and international common carrier                        Carriers (except Satellite).                           own understanding of the competitive
                                                    private lines. Section 43.62(a) of the                     5. Wireless Communications Services.                nature of the international services
                                                    Commission’s rules requires providers                      6. Providers of Interconnected VoIP                 sector, we believe that the international
                                                    of international services to report                     services.                                              traffic and revenue data collection is no
                                                    annually submarine cable, satellite, and                   7. Spot Market Operators.                           longer necessary, and we propose to
                                                    terrestrial capacity between the United                    8. Providers of International                       eliminate this reporting requirement.
                                                    States and foreign points.                              Telecommunications Transmission                        We recognize that there may be
                                                       31. The RFA directs agencies to                      Facilities.                                            occasions when we need international
                                                    provide a description of, and, where                       9. Satellite Telecommunications                     services market information, and seek
                                                    feasible, an estimate of, the number of                 Providers.                                             comment on how to obtain this
                                                    small entities that may be affected by                     10. Operators of Non-Common Carrier                 information in the most cost effective
                                                    proposed rules, if adopted. The RFA                     Undersea Cable Systems.                                and least burdensome way. We are also
                                                    generally defines the term ‘‘small                         11. Incumbent Local Exchange                        considering alternatives that would
                                                    entity’’ as having the same meaning as                  Carriers.                                              provide the Commission with important
                                                    the terms ‘‘small business,’’ ‘‘small                      34. The NPRM proposes a number of                   information for fulfilling its statutory
                                                    organization,’’ and ‘‘small governmental                rule changes that would affect reporting,              obligations but would reduce the
                                                    jurisdiction.’’ In addition, the term                   recordkeeping and other compliance                     burdens on small businesses. With
                                                    ‘‘small business’’ has the same meaning                 requirements for entities providing                    respect to the annual Circuit Capacity
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                                                    as the term ‘‘small business concern’’                  international common carrier services                  Reports, we believe they may warrant
                                                    under the Small Business Act. Pursuant                  pursuant to section 214 of the                         retention, and do not propose their
                                                    to the RFA, the statutory definition of a               Communications Act; entities providing                 elimination. We do, however, explore
                                                    small business applies ‘‘unless an                      international wireless common carrier                  whether there are ways we could further
                                                    agency, after consultation with the                     services under Section 309 of the Act;                 streamline or modify this data collection
                                                    Office of Advocacy of the Small                         entities providing common carrier                      while meeting our statutory obligations.
                                                    Business Administration and after                       satellite services under section 309 of                   37. The NPRM seeks comment from
                                                    opportunity for public comment,                         the Act; and entities licensed to                      all interested parties. The Commission


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                                                    18096                    Federal Register / Vol. 82, No. 72 / Monday, April 17, 2017 / Proposed Rules

                                                    is aware that some of the proposals                     file a report showing its active circuits              Communications Act of 1934, as amended,
                                                    under consideration may impact small                    between the United States and any                      47 U.S.C. 151, 154(i), 154(j), 160, 201–205,
                                                    entities. Small entities are encouraged to              foreign point as of December 31 of the                 214, 218, 403, and 571, unless otherwise
                                                                                                            preceding calendar year sold or leased                 noted.
                                                    bring to the Commission’s attention any
                                                    specific concerns they may have with                    to any customer, including themselves                  ■ 5. Amend § 63.10 by revising
                                                    the proposals outlined in the NPRM.                     or their affiliates, other than a carrier              paragraph (c)(2) to read as follows:
                                                       38. The Commission expects to                        authorized by the Commission to
                                                                                                                                                                   § 63.10 Regulatory classification of U.S.
                                                    consider the economic impact on small                   provide U.S. international common
                                                                                                                                                                   international carriers.
                                                    entities, as identified in comments filed               carrier services.
                                                    in response to the NPRM, in reaching its                   (2) International Submarine Cable                   *     *     *    *     *
                                                                                                            Capacity. (i) The licensee(s) of a                       (c) * * *
                                                    final conclusions and taking action in
                                                                                                            submarine cable between the United                       (2) File quarterly reports on traffic and
                                                    this proceeding.
                                                                                                            States and any foreign point shall file a              revenue within 90 days from the end of
                                                    List of Subjects                                        report showing the capacity of the                     each calendar quarter.
                                                    47 CFR Part 43                                          submarine cable as of December 31 of                   *     *     *    *     *
                                                                                                            the preceding calendar year. The                       ■ 6. Amend § 63.21 by removing and
                                                      Communications common carriers,                                                                              reserving paragraph (d) to read as
                                                                                                            licensee(s) shall also file a report
                                                    Reporting and recordkeeping                                                                                    follows:
                                                                                                            showing the planned capacity of the
                                                    requirements, Telephone.                                submarine cable (the intended capacity                 § 63.21 Conditions applicable to all
                                                    47 CFR Part 63                                          of the submarine cable two years from                  international Section 214 authorizations.
                                                      Communications common carriers,                       December 31 of the preceding calendar                    (d) Reserved.
                                                    Reporting and recordkeeping                             year). Only one cable landing licensee                 ■ 7. Amend § 63.22 by revising
                                                    requirements, Telephone.                                shall file the capacity data for each                  paragraph (e) to read as follows:
                                                                                                            submarine cable. For cables with more
                                                    Katura Jackson,                                         than one licensee, the licensees shall                 § 63.22 Facilities-based international
                                                    Federal Register Liaison Officer, Office of the         determine which licensee will file the                 common carriers.
                                                    Secretary.                                              reports.                                               *     *    *     *      *
                                                                                                               (ii) Each cable landing licensee and                  (e) The carrier shall file annual
                                                    Proposed Rules                                          common carrier shall file a report                     international circuit capacity reports as
                                                      For the reasons discussed in the                      showing its capacity on submarine                      required by § 43.82 of this chapter.
                                                    preamble, the Federal Communications                    cables between the United States and                   *     *    *     *      *
                                                    Commission proposes to amend 47 CFR                     any foreign point as of December 31 of                 [FR Doc. 2017–07547 Filed 4–14–17; 8:45 am]
                                                    parts 43 and 63 as follows:                             the preceding calendar year.                           BILLING CODE 6712–01–P
                                                                                                              Note to Paragraph (a): United States is
                                                    PART 43—REPORTS OF                                      defined in Section 3 of the Communications
                                                    COMMUNICATION COMMON                                    Act of 1934, as amended, 47 U.S.C. 153.
                                                    CARRIERS, PROVIDERS OF                                                                                         DEPARTMENT OF TRANSPORTATION
                                                    INTERNATIONAL SERVICES AND                                (b) A Registration Form, containing
                                                                                                            information about the filer, such as                   Federal Motor Carrier Safety
                                                    CERTAIN AFFILIATES                                                                                             Administration
                                                                                                            address, phone number, email address,
                                                    ■ 1. The authority citation for Part 43 is              etc., shall be filed with each report. The
                                                    revised to read as follows:                             Registration Form shall include a                      49 CFR Parts 383, 391, 392, 395 and
                                                                                                            certification enabling the filer to check              396
                                                      Authority: 47 U.S.C. 154;
                                                    Telecommunications Act of 1996; Pub. Law
                                                                                                            a box to indicate that the filer requests              [Docket No. FMCSA–2017–0114]
                                                    104–104, sec. 402(b)(2)(B), (c), 110 Stat. 56           that its circuit capacity data be treated
                                                    (1996) as amended unless otherwise noted.               as confidential consistent with Section                Federal Motor Carrier Safety
                                                    47 U.S.C. 211, 219, 220, as amended; Cable              0.459(b) of the Commission’s rules.                    Regulations: Highly Automated
                                                    Landing License Act of 1921, 47 U.S.C. 34–                (c) Filing Manual. Authority is                      Commercial Vehicles; Public Listening
                                                    39.                                                     delegated to the Chief, International                  Session
                                                                                                            Bureau to prepare instructions and
                                                    § 43.62   [Removed and Reserved]                        reporting requirements for the filing of               AGENCY:  Federal Motor Carrier Safety
                                                    ■ 2. Section 43.62 is removed and                       these reports prepared and published as                Administration (FMCSA), DOT.
                                                    reserved.                                               a Filing Manual. The information                       ACTION: Announcement of public
                                                    ■ 3. Add § 43.82 to read as follows:                    required under this Section shall be                   listening session.
                                                    § 43.82   Circuit Capacity Reports.                     furnished in conformance with the
                                                                                                                                                                   SUMMARY:   FMCSA announces that it will
                                                                                                            instructions and reporting requirements
                                                      (a) Not later than March 31 of each                                                                          hold a public listening session on April
                                                                                                            in the Filing Manual.
                                                    year:                                                                                                          24, 2017, to solicit information on issues
                                                      (1) Satellite and Terrestrial Circuits.               PART 63—EXTENSION OF LINES, NEW                        relating to the design, development,
                                                    Each facilities-based common carrier                    LINES AND DISCONTINUANCE,                              testing, and deployment of highly
                                                    shall file a report showing its active                  REDUCTION, OUTAGE AND                                  automated commercial vehicles
                                                    common carrier circuits between the                     IMPAIRMENT OF SERVICE BY                               (HACVs). The listening session will
mstockstill on DSK30JT082PROD with PROPOSALS




                                                    United States and any foreign point as                  COMMON CARRIERS; AND GRANTS                            provide interested parties an
                                                    of December 31 of the preceding                         OF RECOGNIZED PRIVATE                                  opportunity to share their views and
                                                    calendar year in any terrestrial or                     OPERATING AGENCY STATUS                                any data or analysis on this topic with
                                                    satellite facility for the provision of                                                                        Agency representatives. FMCSA will
                                                    service to an end user or resale carrier,               ■ 4. The authority citation for part 63                transcribe all comments and place the
                                                    which includes active circuits used by                  continues to read as follows:                          transcripts in the docket referenced
                                                    themselves or their affiliates. Each non-                 Authority: Sections 1, 4(i), 4(j), 10, 11,           above. FMCSA will webcast the entire
                                                    common carrier satellite licensee shall                 201–205, 214, 218, 403 and 651 of the                  proceeding.


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Document Created: 2018-08-25 11:27:18
Document Modified: 2018-08-25 11:27:18
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesSubmit comments on or before May 17, 2017, and replies on or before June 1, 2017.
ContactDavid Krech or Arthur Lechtman, Telecommunications and Analysis Division, International Bureau, FCC, (202) 418-1480 or via email to [email protected] or [email protected] On PRA matters, contact Cathy Williams, Office of the Managing Director, FCC, (202) 418-2918 or via email to [email protected]
FR Citation82 FR 18090 
CFR Citation47 CFR 43
47 CFR 63
CFR AssociatedCommunications Common Carriers; Reporting and Recordkeeping Requirements and Telephone

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