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File how2ftp (.txt & .wp) is in directory /pub/Bureaus/Miscellaneous/Public_Notices/ ***************************************************************** ******** FCC 96-222 Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 In the Matters of ) ) Computer III Remand Proceedings: ) CC Docket No. 90-623 Bell Operating Company Safeguards and ) Tier 1 Local Exchange Company Safeguards ) ) and ) ) Rules Governing Telephone Companies' ) CC Docket Nos. 90-623 Use of Customer Proprietary ) 92-256 Network Information ) ) ORDER Adopted: May 16, 1996 Released: May 17, 1996 By the Commission: 1. In this Order, we dispose of several pending matters in CC Docket No. 90-623 that concern our customer proprietary network information (CPNI) rules. These matters have become moot because of the passage of the Telecommunications Act of 1996 and our commencement of a new proceeding to address the obligations of telecommunications carriers with respect to CPNI in light of the new statute. 2. There are three pending petitions for reconsideration of the BOC Safeguards Order. That order, among other things, revised the CPNI provisions the Commission had adopted in the Computer II and Computer III proceedings for the provision of enhanced services and customer premises equipment (CPE) by the Bell Operating Companies (BOCs). The Cox Reconsideration Petition argued that enhanced services providers (ESPs) should not be required to obtain prior written customer authorization in order to obtain access to CPNI and that the Commission lacked jurisdiction over CPNI derived from state and local use of the telecommunications network. The AICC Reconsideration Petition argued that the Commission should revoke the "20-line rule" imposed by the BOC Safeguards Order, and require the BOCs to obtain prior authorization for access to the CPNI of all local exchange customers. The ATSI Reconsideration Petition argued that the BOC Safeguards Order should be modified in three respects: 1) the BOCs should be prohibited from joint marketing of basic and enhanced services; 2) the BOCs should be required to obtain prior customer authorization to obtain access to the CPNI of all customers; and 3) the BOCs should be required to treat customers that restrict access to their CPNI in a non-discriminatory fashion. 3. On March 10, 1994, the Common Carrier Bureau (Bureau) initiated by Public Notice an inquiry into related CPNI issues. The Notice invited comments on whether the Commission's existing CPNI safeguards continued to strike the appropriate balance among customers' privacy interests, competitive equity, and efficiency, in light of the increasing alliances, acquisitions, and mergers by and between telephone and non-telephone companies. 4. The 1996 Act was enacted on February 8, 1996. Section 702 of the 1996 Act added a new, self-executing Section 222 to the Communications Act of 1934, as amended, which sets forth, among other things, restrictions on the use of CPNI obtained by telecommunications carriers in providing telecommunications service to customers. Section 222 provides, among other things, that all telecommunications carriers must obtain prior customer approval before obtaining access to CPNI for any purpose other than provision of the telecommunications service from which the CPNI is derived, or necessary related services. Further, Section 222 requires telecommunications carriers to disclose CPNI, upon affirmative written request by the customer, to any person designated by the customer. 5. In response to requests from several telecommunications carriers and carrier associations, the Commission is initiating a rulemaking to clarify the CPNI requirements imposed on all telecommunications carriers by the statute. In that Notice, we seek comment, among other things, on whether we should continue to apply to the BOCs existing CPNI requirements that are not inconsistent with the provisions of the 1996 Act, and what, if any, modifications to our existing CPNI rules should be adopted, in light of the statute. 6. We believe that this rulemaking is the appropriate forum in which to consider issues concerning use and protection of CPNI, in light of the statutory CPNI requirements imposed on all telecommunications carriers by the 1996 Act. In addition, because the comment cycle for the March 1994 Public Notice closed well before passage of the 1996 Act, we conclude that the record would be of limited value because it does not address issues raised by the new statute. 7. Because the statutory CPNI provisions supersede the aspects of the CPNI provisions established in the BOC Safeguards Order that were challenged on reconsideration, we hereby dismiss as moot the Cox and AICC Reconsideration Petitions. We note that the ATSI Reconsideration Petition raised an issue going beyond the CPNI requirements adopted in the BOC Safeguards Order. In particular, ATSI argued the Commission should have adopted a prohibition on joint marketing of basic and enhanced services by the BOCs. Because that issue is neither addressed in, nor superseded by, new Section 222 of the 1996 Act, that issue remains pending before the Commission. We dismiss the remainder of the ATSI Reconsideration Petition as moot. We also terminate the inquiry that we initiated on March 10, 1994. 8. Accordingly, IT IS ORDERED that the above-referenced Cox and AICC Reconsideration Petitions in CC Docket No. 90-623 ARE DISMISSED AS MOOT. 9. IT IS FURTHER ORDERED that the above-referenced ATSI Reconsideration Petition in CC Docket No. 90-623 IS PARTIALLY DISMISSED AS MOOT, to the extent indicated within this order. 10. IT IS FURTHER ORDERED that the inquiry initiated by Public Notice on March 10, 1994 in CC Docket Nos. 90-623 and 92-256 IS HEREBY TERMINATED. FEDERAL COMMUNICATIONS COMMISSION William F. Caton Acting Secretary Index Terms: $// Order, customer proprietary network information, CPNI //$ $/ 47 U.S.C.  222 /$