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INTRODUCTION AND BACKGROUND ĐTP  XG- ` x1.` ` In this Order, we implement the Order section of the Commission's Order and  x Notice of Proposed Rulemaking, Reform of Filing Requirements and Carrier Classifications,  X- xy(Reporting Requirements Order) released September 12, 1996.]B yP-  ԍx#c P7 P#Implementation of the Telecommunications Act of 1996: Reform of Filing Requirements and Carrier  zP[- x-Classifications, Order and Notice of Proposed Rulemaking, 11 FCC Rcd 11716 (rel. September 12, 1996) (Reporting  zP%-Requirements Order). We do not, in this Order, act on  X- xithe Notice of Proposed Rulemaking section of the Reporting Requirements Order but rather defer such action to a separate proceeding.  X- ` ~x2.` ` In addition to implementing the Reporting Requirements Order, we also clarify  xdefinitions and row descriptions in several Automated Reporting Management Information System  xj(ARMIS) Reports. These clarifications are implemented to provide consistency among reports  xxand improved understanding of existing requirements. In addition, this Order compiles previously  xadopted ARMIS Report requirements for the convenience of report filers. While   many of these  xrequirements were adopted pursuant to previous Commission Orders, others were developed through correspondence with the industry in an effort to clarify existing procedures.  X $- ` x3.` ` Other minor clarifications in this Order are adopted pursuant to authority delegated" $,))ZZ""  X- xto the Bureau in paragraph 58 of the ARMIS Order]Ty yPy-  ԍx#c P7 P#Reporting Requirements for Certain Class A and Tier 1 Telephone Companies (Parts 31, 43, 67 and 69  zPB- xof the FCC's Rules) CC Docket No. 86182, 2 FCC Rcd 5770 (1987), modified on recon., 3 FCC Rcd 6375 (1988)  zP -(released October 14, 1988) (ARMIS Order). and Section 0.291 of the Commission's rules.  xBecause these changes are minor and, in most cases, made pursuant to the recommendations of  xthe carriers filing the reports, we find for good cause that compliance with the notice and  X- xcomment procedures of the Administrative Procedure Act is unnecessary. See 5 U.S.C. Section 553(b)3B.  Xx- ` Ax4.` ` Pursuant to the above authority, this Order revises or clarifies the following eight  x!ARMIS Reports: FCC Report 4301, the Quarterly Report, FCC Report 4302, the USOA  xReport, FCC Report 4303, the Joint Cost Report, FCC Report 4304, the Access Report, FCC  xjReport 4305, the Quarterly Service Quality Report, FCC Report 4306, the SemiAnnual Service  xQuality Report, FCC Report 4307, the Infrastructure Report and FCC Report 4308, the Operating Data Report.  X - x  X - II. DISCUSSION Đ X -TP  X- A. Reporting Requirements  X{-  Xd- ` x5.` ` Section 402(b)(2)(B) of the Telecommunications Act of 1996 (1996 Act) requires  xthe Commission to "permit any common carrier . . . to file cost allocation manuals and ARMIS  X6- xreports annually, to the extent such carrier is required to file such manuals or reports."6Ty yP-ԍx#x PjQ P#Telecommunications Act of 1996, Pub. L. No. 104104, 110 Stat. 56 (1996). Rules  xrequiring the quarterly filing of the ARMIS Quarterly Report (4301) and ARMIS Quarterly  xService Quality Report (4305) by March 31, June 30, September 30, and December 31, and  x=semiannual filing of the ARMIS SemiAnnual Service Quality Report (4306) by March 31 and  xSeptember 30 of each year were superseded by Section 402(b)(2)(B). The Commission,  X- x<therefore, amended its rules with the issuance of the Reporting Requirements Order. Carriers are  xnow required to file cost and demand data (4301) and service quality data (4305) and (4306)  X- xonce each year.\~Ty zP-  !ԍ#c P7 P#xReporting Requirements Order at para. 4. When we amended our rules to comply with the 1996 Act in  zP - xthe Reporting Requirements Order, we inadvertently omitted the ARMIS Quarterly Service Quality Report (4305) which must also be filed on an annual basis pursuant to Section 402(b)(2)(B) of the 1996 Act.  As directed by the Commission, we are, hereby, revising the form and content  xof the ARMIS Quarterly Report, the ARMIS Quarterly Service Quality Report and the ARMIS  xSemiAnnual Service Quality Report to facilitate annual filings. The reports in this revised format  XR- xare renamed the ARMIS Annual Summary Report (4301), the ARMIS Service Quality Report  x(4305) and the ARMIS Customer Satisfaction Report (4306), respectively. The filing date for  x[all ARMIS Reports, except the ARMIS Infrastructure Report (4307), is now on or before April  X - x1, with the first reports due April 1, 1997. In our Reporting Requirements Order we requested" ,-(-(ZZ["  X- xcomment on a proposed filing date of April 1 for the ARMIS Infrastructure Report (4307).nTy zPy-ԍ#c P7 P#xId at para. 27. n We  xreceived several comments on this issue and the Commission will release an Order in the near  X- x<future determining the outcome of that notice. Therefore, this Order does not determine the filing date of the ARMIS Infrastructure Report.  X- ` ~x6.` ` Section 32.11 of the Commission's rulesoZTy yP-ԍx#x PjQ P#47 C.F.R. 32.11(a).o establishes a $100 million threshold in  x"annual revenues from regulated telecommunications operations" for the purpose of classifying  x.carriers for accounting purposes. Our Part 43 rules place additional reporting requirements on  XH- xcarriers with operating revenues of at least $100 million.jHTy yP -ԍx#x PjQ P#47 C.F.R.  43.j Pursuant to Section 402(c) of the 1996  X1- xAct,n1|Ty yP^-ԍ#x PjQ P#x1996 Act, Sec. 402(c).n the Commission adopted interim rules to adjust the revenue thresholds for inflation. 1 Ty zP-ԍx#x PjQ P#Reporting Requirements Order at para. 10. These  x-revenue thresholds are based on the annual average value of the Department of Commerce Gross  X -Domestic Product ChainType Price Index.m  Ty zPS-ԍx#c P7 P#Id at para. 12.m  X - ` Bx7.` ` The Commission did not set an inflation adjusted threshold for 1996 operating  X - x=revenues because the value of the inflation index for 1996 will not be available until early April  X - x1997.m 1 Ty zP-ԍx#c P7 P#Id at para. 15.m Instead, the Commission stayed Part 43 reporting requirements to the extent that they  X- xare currently imposed upon carriers that will first cross the revenue threshold in 1996.m  Ty zP-ԍx#c P7 P#Id at para. 15.m This  xOrder, therefore, applies to all carriers not subject to the Commission's stay. We adopt revisions  xto all ARMIS reports due on or before April 1, 1997, as well as clarify various items in ARMIS  xireports discussed below and summarized in Appendix A. Detailed instructions for the completion  X4- xlof the reports, which incorporate the changes made in this Order, are available for public  xNinspection in the Commission's Public Reference Room at 2000 L Street, N.W., Suite 812,  x.Washington, D.C. 20554 and from the International Transcription Service, Inc. (ITS) at 2100 M Street, N.W., Suite 140, Washington, D.C. 20037.  X-  X-B. General Requirements  X-  X- ` x8.` ` The following clarifications discussed in paragraphs 9, 10 and 11 apply to all  xARMIS filings. For consistency among reports and in an effort to improve understanding of the"|U ,-(-(ZZn"  x?existing reporting requirements, we clarify the following general requirements: (1) use of  xKsubmission numbers; (2) error check procedures; (3) errata instructions; (4) waivers; (5) extension of filing time; and (6) certification.  X- ` 4x9.` ` Our current rules require each ARMIS submission to contain a submission  xidentification number. Both the automated and paper version of each ARMIS filing must contain  x-the same number. If a revised ARMIS report is provided, both the paper and automated versions  x-must be assigned a new submission identification number. This will ensure that the data on both reports are consistent.  X - ` x10.` ` The Commission provides carriers with "edit check programs" for each of the  xARMIS reports as a tool to identify errors in data. When an error is detected, the carrier must  x=correct the error prior to submitting the report to the Commission. Once the carrier corrects its  xdata so that the edit check program identifies no errors, the carrier should submit the ARMIS  xreport along with a copy of the edit check printout to the Commission verifying that the program  xdid not identify any errors. We make this clarification to ensure that the row and column calculations are consistent with the reporting instructions.  Xb- ` x11.` ` When a carrier submits a corrected ARMIS report, it must provide a brief  x]statement in the transmittal letter specifying which items were corrected. By having this  xinformation available in the transmittal letter, users will be able to identify the corrected data !j  easily.  X- ` x12.` ` We remind carriers that waivers are not in effect until they are granted in writing  x!by the Commission or its delegated authority. Similarly, we emphasize that requests for  x extensions of filing times must be made in a timely manner. Requests received less than 72  X- xLhours prior to a filing deadline are prima facie unreasonable. In addition, we remind carriers in  x=this Order that certification of the accuracy and correctness of each report must be completed  X~-by an officer of the corporation. ~Ty yP-  ԍx#c P7 P#We previously reminded carriers of our waiver, extension of time, and certification requirements in a Public Notice released December 15, 1992.  XP- C. FCC Report 4301 The Annual Summary Report  X"- ` Qx13.` ` FCC Report 4301, the Annual Summary Report, formerly the Quarterly Report,  X - x-is hereby revised pursuant to the Commission's directive in the Reporting Requirements Order. !Ty zP"-ԍ#c P7 P#xReporting Requirements Order  at para. 4.  xThese revisions in both form and content will facilitate the annual collection of the results of  X- xaccounting, rate base and cost allocation requirements prescribed in Parts 32, 36, 64, 65, and 69.Ty yPC&-ԍx#x PjQ P#47 C.F.R.  32, 36, 64, 65, and 69.  xlTable I, Cost and Revenue, is revised to present information on an annual basis that has" D,-(-(ZZ"  x.previously been reported quarterly. The form layout is revised to reduce the number of pages" D,-(-(ZZ"  xrequired by this filing. Table II, Demand Analysis, is revised to facilitate annual filing. Its  xlprevious two sections, Monthly Data End of Quarter View and Quarterly Data, are now  xcombined and will consist of one column, designated (bb), with the subheading "End of Year View."  Xv- ` ~x14.` ` In addition to the above revisions precipitated by the Reporting Requirements  Xa- xZOrder, the following revisions are made to various row descriptions and definitions to add clarity  xand provide consistency among reports. Rows 1320 through 1390 are now identified as either  xrevenue or expense items. Row 1045, Nonregulated revenue, will be presented as a separate line item and no longer included in Row 1040, Miscellaneous revenue.  X - ` x15.` ` In addition, we make the following revisions as required by or adopted in previous  xOrders and in letters from the Chief of the Accounting and Audits Division. The revisions to  X - xRows 1370 and 1780 reflect changes adopted in the AFUDC Order. Ty yP;-  ԍx#c P7 P#The Accounting and Ratemaking Treatment for Allowance for Funds Used During Construction (AFUDC),  zP-10 FCC Rcd 2211 (1995) (AFUDC Order).  !$Z The row descriptions of  xyRow 1370, Nonoperating Adjustment, and Row 1780, FCC Investment Adjustment, are revised  xto specify that these rows will not include any Allowance for Funds Used During Construction  x(AFUDC) or Telecommunications Plant Under Construction (TPUC), respectively, as a Part 65  xAdjustment. !$Z   !$Z Revisions to Rows 1750 and 1880 reflect the adoption of the Statement of Financial  XQ- xkAccounting Standards (SFAS) No. 109 (1994).!Q#Ty yP%-  lԍx#x PjQ P#Amendment of Part 32 of the Commission's rules to Implement Statement of Accounting Standards No.  xj96, Accounting for Income Taxes, 9 FCC Rcd 727 (1994). In this proceeding, the Commission established three  xlnew tax accounts: Account 1437, Deferred tax regulatory asset; Account 4341, Net deferred tax liability adjustments and Account 4361, Deferred tax regulatory liability.  !$Z The definition of Row 1750, Other Deferred  xCharges, is revised to include Account 1437, Deferred tax regulatory asset. Row 1880, Other  x>Jurisdictional Liabilities and Deferred CreditsNet, is revised to include Accounts 4341, Net  xdeferred tax liability adjustments, and 4361, Deferred tax regulatory liability. Rows 1110, 1190,  x\1540, 1590, 1610, 1690 and 1705 are revised to reflect prior clarifications made in a letter from  xkthe Common Carrier Bureau to a representative of the United States Telephone Association  X- x(USTA) on September 11, 1990.$ Ty yP-  ?ԍx#x PjQ P#Letter from Mr. Ken Moran, Chief, Accounting and Audits Division, Common Carrier Bureau to Mr. Wayne Chiles, Data Reporting Task Force, United States Telephone Association, September 11, 1990.$ Similarly, Rows 1920 and 1935 are revised pursuant to a  X- xletter from the Common Carrier Bureau to a representative of USTA on May 20, 1991.)e Ty yP"-  ?ԍx#x PjQ P#Letter from Mr. Ken Moran, Chief, Accounting and Audits Division, Common Carrier Bureau to Mr. Stephen Burnett, Director Separations and Access, United States Telephone Association, May 20, 1991.) Table  x II, Row 2140 has been revised to clarify that this row is for lines subject to a special access  X- xsurcharge, pursuant to Sections 69.5(c) and 69.111.W Ty yO&-ԍx47 C.F.R.  69.5(c) and 69.111W We also eliminate Table III, Restated Data,"N ,-(-(ZZ" because this data is no longer effective  xwhen submitted only on an annual basis. Part I of Appendix A to this Order provides a summary of all revisions to this report. "N ,-(-(ZZ2"Ԍ X- D. FCC Report 4302 The USOA Report  X- ` Px16.` ` FCC Report 4302, the USOA Report, provides the annual operating results of the  xcarriers' activities for every account in the Uniform System of Accounts (USOA). In this Order,  xiwe amend row descriptions and definitions to add clarity and provide consistency among reports.  XH- xIn Table I1, Income Statement Accounts, Row 5280, Nonregulated, is no longer included in Row  X1- xy5200, Miscellaneous, to be consistent with Part 32.H1Ty yO -ԍx47 C.F.R.  32.5200.H We also revised the row descriptions and  X - xdefinitions of Row 510, Basic Local Service Revenue, and Row 520, Local Network Service  xRevenue, to be clear and to be consistent with the same change made in Report 4303. In  X - xaddition, we clarify the description of Row 730. It now reads "Income Before Other Operating  xItems and Taxes." This Order further clarifies the definition of Row 860, Total Compensation  x for the Year. It now states that this amount includes payroll, including salaries, wages and  x]payroll related benefits. Both the amounts expensed and those amounts capitalized as a  x!component of cost of construction should be included in this row. Finally, various row  Xy- xdescriptions in Table I6, Special Charges , and Table I7, Donations or Payments for Services  x-Rendered by Persons Other Than Employees, are clarified to specify dollar amounts above which  xitems must be reported. Part II of Appendix A of this Order provides a summary of all revisions to this report.  X- E. FCC Report 4303 The Joint Cost Report  X- ` x17.` ` FCC Report 4303, the Joint Cost Report, details the carriers' regulated and  X- xnonregulated allocations by study area pursuant to Section 64.901nXTy yP-ԍx#c P7 P#47 C.F.R.  64.901.n of the Commission's rules.  xIn this Order, we clarify various row descriptions and definitions to provide consistency among  X- xreports. Row 5280, Nonregulated, is no longer included in Row 5200, Miscellaneous , to be  xconsistent with Part 32. We also revised the row descriptions and definitions of Row 510, Basic  Xe- xLocal Service Revenue, and Row 520, Local Network Service Revenue, to clarify and to be  xLconsistent with the same change made in Report 4302. In addition, the description of Row 530  X7- x is now "Total Operating Revenues" and is consistent with the description of Row 530 of FCC  xReport 4302, Table I1. We also added a new row entitled "Total Operating Expenses" (Row  x720) to be consistent with FCC Report 4302, Table I1. Finally, the definitions of Rows 7200,  x07300, 7600 and 750 are revised to clarify the instructions for their calculation. Part III of Appendix A of this Order provides a summary of all revisions to this report. " ,-(-(ZZ"  X- F. FCC Report 4304 The Access Report  X- ` x18.` ` FCC Report 4304, the Access Report, provides jurisdictional separations and  xaccess charge data by Part 36 category at the study area level. In this Order, we expand row  xKtitles to provide more meaningful descriptions. We also clarify various row definitions to provide  xconsistency among reports. The General Instructions are expanded to include symbols to be used  x=to differentiate whole dollars, dollars reported in thousands, percentages and other units (e.g., minutes, miles, conversational minutes, working loops, etc.).  X - ` x19.` ` We also make the following revisions as required by or adopted in previous Orders  xand letters from the Chief of the Accounting and Audits Division. Rounding conventions are  xincluded to reflect prior clarifications made in a letter from the Common Carrier Bureau to a  X - xLrepresentative of USTA on July 10, 1992.* Ty yPN-  ?ԍx#x PjQ P#Letter from Mr. Ken Moran, Chief, Accounting and Audits Division, Common Carrier Bureau to Mr. Stephen Burnett, Director Separations and Access, United States Telephone Association, July 10, 1992.* In addition, the N/As are removed from Column (r)  xfor Rows 3070 and 3071 to reflect prior revisions made in a letter from the Common Carrier  X - xBureau to a representative of USTA on March 26, 1992.X !Ty yOy-  lԍxLetter from Mr. Ken Moran, Chief, Accounting and Audits Division, Common Carrier Bureau, to Mr.  xStephen Burnett, Director Separations and Access, Unites States Telephone Association, March 26, 1992. An N/A is a predesignated symbol which appears in an ARMIS report indicating that entries in that area are not applicable. The descriptions of Row 2250, FCC  xInvestment Adjustment, and Row 7350, FCC Expense Adjustment, are clarified to state that these  xrows will not include any TPUC or AFUDC, respectively, as a Part 65 Adjustment. These  Xb- xjclarifications reflect changes made in the AFUDC Order.vbATy zPT-ԍx#x PjQ P#See supra note 16.v Row 8042, Rate of Return, and Row  XM- x8045, Rate of Return Including FCC Refund, are revised pursuant to the LEC Price Cap Order.@MTy zP-  |Ѝ #x PjQ P#xSee Policy and Rules Concerning Rates for Dominant Carriers, Second Report and Order, 5 FCC Rcd  zP- x\6786, 6821 (1990), Erratum, 5 FCC Rcd 7664 (Com. Car. Bur. 1990) ("LEC Price Cap Order"), modified on  zPe- xrecon., Order on Reconsideration, 6 FCC Rcd 2637 (1991) (LEC Price Cap Reconsideration Order), aff'd sub nom.  zP/- xNational Rural Telecom Ass'n v. FCC, 988 F.2d 174 (D.C. Cir. 1993), petitions for further recon. dismissed, 6 FCC  zP- xyRcd 7482 (1991), further modification on recon., Amendments of Part 69 of the Commission's Rules Relating to  xKthe Creation of Access Charge Settlements for Open Network Architecture, Policy and Rules Concerning Rates for  zP- xDominant Carriers, Report and Order and Order on Further Reconsideration and Supplemental Notice of Proposed  zPU - xKRulemaking, 6 FCC Rcd 4524 (1991) ("ONA Part 69 Order"), further recon., Memorandum Opinion and Order on  zP!-Second Further Reconsideration, 7 FCC Rcd 5235 (1992).@  xRow 8021, Approximate Net Taxable Income, has been revised to clarify its calculation. Row  x9010, Total Billable Access Lines, has been revised to be consistent with FCC Report 4301,  xzTable II, Row 2140. Part IV of Appendix A of this Order provides a summary of all revisions to this report. ",-(-(ZZ"  X- G. FCC Report 4305 The Service Quality Report  X- `  x 20.` ` FCC Report 4305, the Service Quality Report, provides service quality  xinformation in the areas of interexchange access service installation and repair intervals, local  xjservice installation and repair intervals, trunk blockage and total switch downtime for price cap  Xv- xcompanies. All tables have been revised pursuant to Commission directive in the Reporting  Xa- xRequirements Order to facilitate reporting on an annual basis. Table III is now "Common Trunk  XL- xBlockage" and consists of one column, designated (ak), for annual data. Rows 180, 181, and 185  x=through 190 are revised to facilitate annual reporting. The rows in Table IV.A are expanded for  x.collection of annual data. The column designators in Table I, Installation and Repair Intervals  xk(Interexchange Access), Table II, Installation and Repair Intervals (Local Service), Table IV,  xkTotal Switch Downtime, and Table V, Service Quality Complaints, are revised to distinguish quarterly data from annual data.  X - ` ~x21.` ` In addition to the above revisions precipitated by the Reporting Requirements  X- x^Order, the following revisions are made to clarify the filing instructions. The General  X- xInstructions for Table I, Installation and Repair Intervals (Interexchange Access), are revised to  xinclude procedures for summarizing data which contain percentages and averages. The definitions  XS- xzof Columns (af), (ai) and (aj) of Table II, Installation and Repair Intervals (Local Service), are  X<- x{also revised. Table IV, Total Switch Downtime, will maintain the current row and column  xdefinitions with the exception of Column (ao), Number of Switches Having Downtime, which  X- x>is revised to include language to clarify the reporting of switches with multiple incidents of  X- xoutage. Table IV.A, Occurrences of Two Minutes or More Duration Downtime, will provide  xadditional instructions stating that no summaries are to be provided for this table because the  xpurpose of this table is to provide information on individual incidents. Table V, Service Quality  xComplaints, is also revised and now includes language specifying that the data on Rows 320 and  x330 should agree with data reported on Row 140, Table II. Part V of Appendix A of this Order provides a summary of all revisions to this report.  Xm-  XV-H. FCC Report 4306 The Customer Satisfaction Report  X(- ` ox22.` ` FCC Report 4306, the Customer Satisfaction Report, formerly the SemiAnnual  xService Quality Report, reflects the results of customer satisfaction surveys conducted by  X- x/individual carriers and is hereby revised pursuant to the Reporting Requirements Order to  xfacilitate the collection of data on an annual basis. The column designators are revised to  xdistinguish semiannual data from annual data. Table II, Dial Tone Response and Transmission  xQuality, is now eliminated. Part VI of Appendix A of this Order provides a summary of all revisions to this report.  Xr$- I. FCC Report 4307 The Infrastructure Report  XD&- ` x23.` ` FCC Report 4307, the Infrastructure Report, provides switch deployment and  xcapabilities data. In this Order, various rows of Table I, Switching Equipment, are revised to"-',-(-(ZZ%"  x.correct minor typographical errors. In addition, for clarification purposes, Table IV, Additions  xzand Book Costs, Row 0540 is now renamed "Total TPIS Gross Additions (000)." Part VII of Appendix A of this Order provides a summary of all revisions to this report.  X- J. FCC Report 4308 The Operating Data Report  Xv- ` ~x24.` ` FCC Report 4308, the Operating Data Report, provides network operating data  x=in a consistent format and is essential for monitoring network growth, usage and reliability. In  xthis Order, the only clarifications made to this report are the clarifications we made to the general  x<requirements in the Reporting Procedures section of this report. As we noted in Section B of this Order, these clarifications are necessary to maintain consistency among all ARMIS reports.  X -  III. PAPERWORK REDUCTION ACT ĐTP  X - ` x25.` ` The modifications to the information collections contained herein are contingent  X-upon approval of the Office of Management and Budget.  XK-iIV. ORDERING CLAUSE TP  X- ` #x26.` ` Accordingly, IT IS ORDERED, pursuant to the authority contained in Sections 1,  x>4(i), 4(j), 201205, 215, 218, 219, and 220 of the Communications Act of 1934, as amended, 47  xU.S.C.  151, 154(i), 154(j), 201205, 215, 218, 219, and 220, and Sections 0.91 and 0.291 of  xNthe Commission's rules, 47 C.F.R.  0.291, that, FCC Report 4301, the Annual Summary  x>Report, FCC Report 4302, the USOA Report, FCC Report 4303, the Joint Cost Report, FCC  xkReport 4304, the Access Report, FCC Report 4305, the Service Quality Report, FCC Report  x=4306, the Customer Satisfaction Report, FCC Report 4307, the Infrastructure Report, and FCC  x4308, the Operating Data Report, ARE REVISED, as set forth above and in the Appendix to this Order, effective for filings due April 1, 1997 and, in the absence of modification, thereafter.  x` `  hhFEDERAL COMMUNICATIONS COMMISSIONX(#P x` `  hhKenneth P. Moran x` `  hhChief, Accounting and Audits Division Attachment