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A. 1. a.(1)(a) i) a) 1. I. INTRODUCTION   X44 e X\1. ` ` On March 1, 1996 BellSouth filed a petition for waiver of the Commission's  X4 xyComparably Efficient Interconnection (CEI) requirements9 yO'ԍXThe requirement to file a CEI plan was established in the Commission's Computer III proceedings. See  yO^'infra note COMPIII9.(# in order to offer a reversesearch  X4 xycapability in conjunction with its electronic white pages service.X 9 yO'ԍXThe petition was placed on public notice on March 6, 1996, and the record closed on March 26, 1996. Public Notice, DA 96296 (rel. Mar. 6, 1996). No parties other than BellSouth filed comments or reply comments.(# Although BellSouth applied  xfor a CEI waiver to provide this service generally, it cited with particularity its need to provide  xthis capability to the Federal Bureau of Investigation (FBI) in order to assist it with security  xpreparations for the Summer Olympic Games, which will be held in Atlanta, Georgia in July  X4 x1996. In this Order, we grant BellSouth a temporary limited waiver of the Computer III CEI  xplan and CEI equal access parameter requirements so that BellSouth can provide the reverse x8search capability described in its petition to the FBI. This temporary waiver will take effect  xuimmediately and will expire on September 30, 1996. We will address the issues raised by  XN4 xBellSouth's petition for a general waiver in a separate order.N@9 yO?#'ԍXWe have previously granted a waiver for a reverse search capability to U S West. U S West  yO$'Communications, Inc. Waiver of Computer III Rules for ReverseSearch Capability, CC Docket No. 90 yO$'623, Order, DA 952297 (rel. Nov. 6, 1995) (U S West Waiver Order). On December 8, 1995 Ameritech filed a petition for reconsideration of the U S West waiver. Ameritech Petition for Limited  yO_&'Reconsideration of U S West Waiver Order, Public Notice, Report No. 2115 (rel. Dec. 13, 1995)  yO'''(Ameritech Petition for Reconsideration). Ameritech does not oppose provision of reversesearch"''0*((('" services by U S West, but contends that reversesearch services should be classified as an adjunctto yOX'basic service rather than an enhanced service. Id.(#Ƹ We condition this temporary"N 0*(('"  Y-  waiver on BellSouth's compliance with the Commission's Joint Cost Rules,X  xP-ԍXJoint Cost Order, Report and Order, 2 FCC Rcd 1298 (1987), Order on Reconsideration, 2 FCC Rcd  xP-6283 (1987), Order on Further Reconsideration, 3 FCC Rcd 6701 (1988), aff'd sub nom.  xPa-Southwestern Bell Corp. v. FCC, 896 F.2d 1378 (D.C. Cir. 1990). See also 47 C.F.R. Parts 32, 64.(#ơ appropriate  Y-  amendment of their Cost Allocation Manuals (CAMs), and compliance with our Computer III   wcustomer proprietary network information (CPNI) requirements as they will be modified by the  Y-  Telecommunications Act of 1996 (1996 Act). @ xP -ԍXThe 1996 Act creates requirements for Bell Operating Company (BOC) entry into various interLATA services. Telecommunications Act of 1996, Pub. L. No. 104104, 110 Stat. 56. Pending the outcome of proceedings implementing the requirements of the 1996 Act, we are continuing to grant waivers  xP -under the existing Computer III regime. Section 222 of the 1996 Act includes CPNI requirements that  xP -modify the Computer III CPNI requirements.(#  We also grant BellSouth a waiver of Part 64.903   of the Commission's rules to allow BellSouth to provide this service immediately, without providing 60 days notice of the amendment of its CAM. l  XH-+] II. BACKGROUND l  Y -  lU2. ` ` The Commission's 1980 Computer II regulatory scheme established two categories  Y -  of communications services: basic services and enhanced services.   xP-ԍXAmendment of Section 64.702 of the Commission's Rules and Regulations (Computer II), Final  xPl-Decision, 77 FCC 2d 384 (1980) (Computer II Final Decision), recon., 84 FCC 2d 50 (1980), further  xP4-recon., 88 FCC 2d 512 (1981), aff'd sub nom., Computer and Communications Indus. Ass'n v. FCC,  xP-693 F.2d 198 (D.C. Cir. 1982), cert. denied, 461 U.S. 938 (1983).(# The Commission defined   Jbasic services as those that provide a "pure transmission capability over a communications path  Y -  Kthat is virtually transparent in terms of its interaction with customersupplied information."@  xP^-ԍXComputer II Final Decision, 77 FCC 2d at 420. "Basic services," such as "plain old telephone service" (POTS), are regulated transmission services that are offered under tariff pursuant to Title II of  xP-the Communications Act of 1934, as amended (the Act). In the NATA Centrex Order the Commission discussed characteristics of "adjunct to basic services" that facilitate the use of traditional telephone  xP~-service but do not alter the fundamental character of telephone service. See North American Telecommunications Association, Petition for Declaratory Ruling Under Section 64.702 of the Commission's Rules Regarding the Integration of Centrex, Enhanced Services, and Customer Premises  xP!-Equipment, 101 FCC 2d 349, 359361, paras. 2328 (1985) (NATA Centrex Order).(#Ǝ   wEnhanced services are defined as services that employ computer processing applications that act   on the format, content, code, protocol or similar aspects of a subscriber's transmitted   information, and provide the subscriber additional, different, or restructured information, or  Yy-involve subscriber interaction with stored information.Uy xP '-ԍ See 47 C.F.R.  64.702(a).U "yp0*((,"Ԍ Y-  ԙ3. ` ` The requirement to file a Comparably Efficient Interconnection plan (CEI plan)  Y-  was first established in the Computer III proceeding, `  xPb-ԍX COMPIII Amendment of Section 64.702 of the Commission's Rules and Regulations (Computer III), CC Docket  xP*-No. 85229, Phase I, 104 FCC 2d 958 (1986) (Phase I Order), recon., 2 FCC Rcd 3035 (1987) (Phase  xP-I Reconsideration Order), further recon., 3 FCC Rcd 1135 (1988), second further recon., 4 FCC Rcd  xP-5927 (1989); Phase I Order and Phase I Reconsideration Order vacated California v. FCC, 905 F.2d  xP-1217 (9th Cir. 1990); Phase II, 2 FCC Rcd 3072 (1987) (Phase II Order), recon., 3 FCC Rcd 1150  xPJ-(1988, further recon., 4 FCC Rcd 5927 (1988); Phase II Order vacated, California v. FCC, 905 F.2d  xP-1217 (9th Cir. 1990) (California I); Computer III Remand Proceeding, 5 FCC Rcd 7719 (1990),  xP-recon., 7 FCC Rcd 909 (1992), pets. for review denied, California v. FCC, 4 F.3d 1505 (9th Cir.  xP -1993) (California II); Computer III Remand Proceedings: Bell Operating Company Safeguards and Tier  xPj -1 Local Exchange Company Safeguards, 6 FCC Rcd 7571 (1991) (BOC Safeguards Order), BOC  xP2 -Safeguards Order vacated in part and remanded, California v. FCC, 39 F.3d 919 (9th Cir. 1994)  xP -(California III), cert. denied, 115 S.Ct. 1427 (1995). (# when the Commission adopted a regulatory   framework through which BOCs could offer integrated enhanced and basic services, rather than  Y-  ;offering them through a separate subsidiary.?   xP\-ԍXIn Computer II, the Commission required the thenintegrated Bell system to provide enhanced services  xP$-through a structurally separate subsidiary. Computer II Final Decision, 77 FCC 2d at 47586, paras.  xP-23360; Reconsideration Order, 84 FCC 2d at 7586, paras. 72105; 47 C.F.R.  64.702. Following  xP-the divestiture of AT&T, this requirement was extended to the BOCs. Policy and Rules Concerning the Furnishing of Customer Premises Equipment, Enhanced Services and Cellular Communications  xPD-Equipment by the Bell Operating Companies, CC Docket No 83115, Report and Order, 95 FCC 2d  xP -1117, 1120, para. 3 (1984), affirmed sub nom. Illinois Bell Telephone Co. v. FCC, 740 F.2d 465  xP-(1984), affirmed on recon., FCC 84252, 49 Fed. Reg. 26056 (1984), affirmed sub nom. North  xP-American Telecommunications Ass'n v. FCC, 772 F.2d 1282 (7th Cir. 1985).(#? In October 1994, the U.S. Court of Appeals for  Y-  jthe Ninth Circuit remanded portions of the Computer III proceeding to the Commission.  xP-ԍXThe Ninth Circuit found portions of the Commission's Computer III order arbitrary and capricious  xP-under the Administrative Procedure Act (APA). California III, 39 F.3d at 929.(#  Y-  During the pendency of the remand,  xPV-ԍXIn response to the California III decision, the Commission also has initiated a rulemaking proceeding to  xP-review the current nonstructural safeguards for BOC provision of integrated enhanced services. Notice of Proposed Rulemaking, Computer III Further Remand Proceedings: Bell Operating Company  xP-Provision of Enhanced Services, 10 FCC Rcd 8360 (1995).(# and under the requirements of Computer III and the  Yv-  Interim Waiver Order, Bell Operating Companies (BOCs) are required to file CEI plans for each   proposed enhanced service offering, or, receive a waiver of the Commission's CEI requirements   if they wish to offer an enhanced service on an integrated basis and the service is not the subject  Y1-  of a previouslyapproved CEI plan. 1 xP"-ԍXBell Operating Companies' Joint Petition for Waiver of Computer II Rules, 10 FCC Rcd 1724 (1995).(#Ơ BOC CEI plans are required to demonstrate that the BOCs   provide interconnection opportunities to other enhanced service providers (ESPs) on an "equal   access" basis, thus making basic facilities available on an unbundled and functionally equivalent"  0*(( "  Y-  basis. xPy-ԍXPhase I Order, 104 FCC 2d at 96465, paras. 45, 147, & n. 210. The CEI plans were required to comply with a series of "equal access" parameters, including requirements that the services be offered at the same tariffed rates the BOCs themselves paid, and that the services offered to ESPs had the same  xP-technical characteristics and interface functionality as the services used by the BOCs. Id. at 1036, para. 147.(# These CEI plans, combined with our Joint Cost Rules and CAM requirements, are the   wnonstructural safeguards imposed by the Commission in lieu of structural separation, to prevent  Y-crosssubsidization and access discrimination. x xP-ԍXComputer III Remand Proceedings: Bell Operating Company Safeguards; and Tier 1 Local Exchange  xP -Company Safeguards, Notice of Proposed Rulemaking and Order, 6 FCC Rcd 174, 175 (1990) at para.  xP -9. For a more complete review of the history of the Computer Inquiry Proceedings, see U S West  xPS -Waiver Order, paras. 210.(#  Y-  _4. ` ` In November 1995 we granted a waiver of our CEI plan requirements to U S   g West to allow it to offer a reversesearch capability in conjunction with its electronic white pages  Yv-  wservice.Uv`  xP-ԍXU S West Waiver Order.(#U In that order, we determined that the reversesearch capability is an enhanced service  Y_-  ,and is subject to our CEI plan requirements.S_  xP-ԍXId. at 12, para. 26.(#S We concluded that the reversesearch capability   did not qualify as an adjuncttobasic service because its primary purpose was not to facilitate  Y1-  call completion.S1  xPb-ԍXId. at 13, para. 30.(#S We conditioned our approval of U S West's waiver request on its compliance  Y -with our Joint Cost Rules, CAM requirements, and Computer III CPNI requirements.S  xP-ԍXId. at 15, para. 34.(#S  X -3 III. DISCUSSION ĐlU  X - A.The BellSouth Petition  Yy-  l5. ` ` BellSouth requests a waiver that would allow it to offer a reversesearch capability   ,on an integrated basis with its electronic white pages service because technological constraints   I will not allow it to offer the capability economically on an equal access basis, in accordance with  Y4-  our CEI plan requirements.H4 xP#-ԍXBellSouth at 4.(#H Currently, BellSouth offers its electronic white pages service as   a tariffed basic service. This service allows customers to request the phone number of a  Y-  telephone subscriber via a personal computer and modem.H0 xP&-ԍXBellSouth at 2.(#H Customers may perform only one"0*(( "  Y-  search at a time, and may search by name only.B xPy-ԍXId.(#B BellSouth proposes to offer the reversesearch   capability by changing the functionalities of the current service and allowing customers to  Y-  hinteract directly with the database currently used for the electronic white pages.\X xP-ԍXBellSouth, Martin Affidavit at 15.(#\ The reverse  search capability would allow customers to retrieve subscriber name and address information by   Jproviding a telephone number, but would not allow customers to retrieve a subscriber name or  Y-telephone number by providing an address.J xP& -ԍXBellSouth at 23.(#J  Y_-  6. ` ` BellSouth asserts that, in order to comply with the CEI requirements, it would be   Yrequired to create a separate interface with its existing database that could be used by all ESPs.   BellSouth contends that competing directory service providers do not require interconnection   with BellSouth's database in order to provide a reversesearch capability and claims that several  Y -  hcompanies already offer this service. x xP,-COMPETITORS׍XBellSouth at 4, n.6 (listing DirectoryNet, Metromail, First Data Info Source, and Pro CD as companies which offer competing services in BellSouth territory).(# BellSouth states that it would take one to two years and   Zwould cost at least $900,000 to develop a reversesearch capability that would meet the CEI  Y -  equal access requirements.b  xPV-ԍXBellSouth at 4 (citing Martin Affidavit).(#b BellSouth further asserts that it would not be able to recover the   costs of providing a reversesearch capability in compliance with out CEI requirements from the   rates charged for this feature. As a result, BellSouth states that if it cannot offer the reverse Y-search capability on an integrated basis, it will not offer this capability at all.H`  xP-ԍXBellSouth at 4.(#H  Yb-  7. ` ` BellSouth contends that the reversesearch capability should be classified as an  YK-  Yadjuncttobasic service under the Commission rules.K  xP-ԍ XBellSouth at 1, n.2. See NATA Centrex Order, 101 FCC 2d 349, 359361, paras. 2328. Ameritech  xP-makes the same argument in its petition for reconsideration of the U S West Waiver Order.(# It represents, however, that it is willing   to provide the reversesearch capability as an enhanced service in order to speed the availability  Y-  of the service to the FBI for use in its security preparations for the Summer Olympic Games.UXH  xP"-ԍFBI LETTERXFBI LETTERLetter from Ms. Carolyn G. Morris, Assistant Director, Information Resources Division, Federal Bureau of Investigation, to Mr. Ben G. Almond, Executive Director Federal Regulatory, BellSouth (February 26, 1996) (attachment to BellSouth petition).(#U   The FBI has indicated that the prompt acquisition of telephone subscriber information is essential   to protect the public and law enforcement officers, and that its need for the reversesearch"h0*(("  Y-  capability is particularly critical in light of the upcoming Olympic Games.B xPy-ԍXId.(#B BellSouth further   represents that it is willing to comply with the conditions imposed on the grant of U S West's  Y-waiver for the provision of the reversesearch service.8XX xP-ԍXBellSouth at 3. These include compliance with the Commission's Joint Cost Rules, appropriate amendment of their Cost Allocation Manuals, and compliance with Commission CPNI requirements. (#  xPk-U S West Waiver Order, para. 1.8  X- 4B.Waiver Standard  Yv-  ^8. ` ` The Commission may waive any provision of its rules or orders if good cause is  Y_-  shown.L _x xP -ԍX47 C.F.R.  1.3.(#L A showing of good cause requires the petitioner to demonstrate special 4circumstances    that warrant deviation from the rules or orders, and to show how such deviation would serve the  Y1-  public interest.!1 xP-ԍXNortheast Cellular Telephone Co. v. FCC, 897 F.2d 1164, 1166 (D.C. Cir. 1990).(#ƍ The applicant must clearly demonstrate that the general rule is not in the public   winterest when applied to its particular case, and that the grant of the waiver will not undermine  Y -the public policy served by the rule."X  xPL-ԍXSee American Telephone and Telegraph Company Petition for Waiver of Section 64.702 of the  xP-Commission's Rules and Regulations, 88 FCC 2d 1, 5 (1981); Computer II, 84 FCC 2d 50, 58 (1980).(#  X - C.Decision  Y -  29. ` ` We grant BellSouth a temporary waiver to provide its reversesearch service   throughout the BellSouth territory to the FBI, in order to allow the FBI to take security measures  Yy-  as they relate to the Olympic Games until September 30, 1996.#y  xP-ԍXWe note that we have previously granted a temporary waiver to U S West for the notification period for network disclosure in order to allow it to provide a video transport service to the Federal Aviation  xPr-Administration that was necessary to ensure public safety during the Special Olympics. U S West Communications, Inc. Limited Waiver of Network Disclosure Requirements, Memorandum Opinion  xP -and Order, 6 FCC Rcd 3398 (1991). See also U S West Limited Waiver of Network Disclosure  xP -Requirements Order, 6 FCC Rcd 5067 (1991) (granting an extension of the limited waiver).(# Significantly, no party opposed   hgranting BellSouth a CEI plan waiver. Moreover, the record indicates that competition already   exists in the directory services market and that competing providers of these services currently  Y4-  Joffer reversesearch capabilities as part of their offerings.l$40 xP%-ԍXSee supra note COMPETITORS25.(#l Thus, the record shows that access   to BellSouth's offering is not necessary to allow other companies to provide competing reverse  search capabilities. In addition, no party has challenged BellSouth's assertion that compliance"$0*(( "   ,with the Commission's CEI requirements would delay introduction of the proposed service for  Y-  several years and cause BellSouth to incur costs that would make its offering noncompetitive.% xPb-ԍXBellSouth submitted an affidavit detailing the technological and financial implications of complying with our CEI requirements. BellSouth, Martin Affidavit. (#   Finally, BellSouth's compliance with our Joint Cost Rules will protect against unlawful crosssubsidization.  Y-  ! 10. ` ` We are persuaded that the application of our CEI plan requirements to BellSouth's   provision of reversesearch capability is not in the public interest in this case because BellSouth's   compliance with our requirements is not necessary to allow competing providers to offer this  YH-service, and because of the FBI's representations regarding its need for this service.R&XH  xP -ԍXSee supra note FBI LETTER29. This waiver will take effect immediately and will be in effect until September 30, 1996 in order to allow the FBI to use the reversesearch capability prior to the Olympic Games and for a reasonable period after their conclusion.(#R  Y -   11. ` ` We conclude that BellSouth has established good cause for granting a temporary   waiver. We limit this waiver to BellSouth's provision to the FBI of the reversesearch capability   described in BellSouth's petition in order to allow the FBI to use this service in connection with   its preparation for the Olympic Games. This waiver will be in effect from release of this Order   until September 30, 1996. We condition our grant of this waiver on BellSouth's compliance  Y -  with the Commission's Joint Cost Rules,'X @ xP-ԍXJoint Cost Order, Report and Order, 2 FCC Rcd 1298 (1987), Order on Reconsideration, 2 FCC Rcd  xP`-6283 (1987), Order on Further Reconsideration, 3 FCC Rcd 6701 (1988), aff'd sub nom.  xP(-Southwestern Bell Corp. v. FCC, 896 F.2d 1378 (D.C. Cir. 1990). See also 47 C.F.R. Parts 32, 64.(#ơ modification of its CAM, and compliance with the  Y-  Computer III CPNI requirements, as they will be amended by the 1996 Act. Action on the remainder of BellSouth's petition is deferred.  YK-  " 12. ` ` Further, we grant BellSouth a waiver of Part 64.903 of the Commission's rules   insofar as it is necessary to allow BellSouth to provide the reversesearch service to the FBI   immediately upon issuance of this Order. Part 64.903(b), as amended by the 1996 Act, requires   carriers with annual operating revenues of $100 million or more to report changes to their    CAMs which affect their cost apportionment tables and time reporting procedures 60 days before  Y-  hthe carrier plans to implement the changes.O(`  xP -ԍX47 CFR  64.903(b).(#O BellSouth submitted changes to its CAM on April   1, 1996. We find that waiver of this provision is in the public interest because it will allow BellSouth to offer the reversesearch capability to the FBI immediately. "| (0*((|"Ԍ Y-z- V. ORDERING CLAUSES ă  Y-   13. ` ` IT IS HEREBY ORDERED that BellSouth's petition for a waiver of the Computer  Y-  III CEI Plan and CEI equal access parameter requirements for the electronic white pages   reversesearch capability IS GRANTED IN PART, as discussed herein, until September 30, 1996.  Y`-   14. ` ` IT IS FURTHER ORDERED that Part 64.903 of the Commission's rules IS WAIVED to the extent discussed herein. ` `  hh,VFederal Communications Commission ` `  hh,VA. Richard Metzger, Jr. ` `  hh,VDeputy Chief, Common Carrier Bureauz