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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Federal Communications Commission DA 97-1793 Before the Federal Communications Commission Washington, DC 20554 In the Matters of) ) Implementation of the Pay Telephone) Reclassification and Compensation) Provisions of the Telecommunications Act) of 1996)CC Docket No. 96-128 ) Policies and Rules Concerning ) Operator Service Access and) Pay Telephone Compensation)CC Docket No. 91-35 ) Petition of the Public Telephone) Council to Treat Bell Operating Company) Payphones as Customer Premises Equipment) ) Petition of Oncor Communications) Requesting Compensation for) Competitive Payphone Premises) Owners and Presubscribed) Operator Services Providers) ) Petition of the California Payphone) Association to Amend and) Clarify Section 68.2(A) of the) Commission's Rules) ) Amendment of Section 69.2(M)) and (EE) of the Commission's ) Rules to Include Independent ) Public Payphones within the) "Public Telephone" Exemption) from End User Common) Line Access Charges) MEMORANDUM OPINION AND ORDER Adopted: August 21, 1997Released: August 22, 1997 By the Deputy Chief, Common Carrier Bureau: I. INTRODUCTION 1.Part 68 governs the terms and conditions under which customer-provided terminal equipment may be connected to the nation's telephone network without causing harm to the network. Part 68 also provides rules exempting certain equipment from the registration rules of Part 68. On September 20, 1996, the Commission released a Report and Order in which it amended Part 68 of the Commission's rules to include central-office-implemented coin payphones among the equipment governed by these rules. Prior to the Payphone Order, only instrument-implemented payphones had to be registered as equipment for connection to the public switched telephone network (PSTN). The amended rules in the Payphone Order were designed to promote competition among payphone service providers by enabling independent payphone providers, as well as local exchange carriers, to use central-office-implemented coin payphones as well as instrument-implemented payphones. Thus, the amended rules were designed to give independent payphone providers the same choice as LECs in the equipment they would use in providing payphone services. 2.In the Payphone Recon. Order, the Commission also delegated to the Common Carrier Bureau (Bureau) the authority to establish requirements for equipment that was grandfathered by the Payphone Order. In this Order, the Bureau, acting on the authority granted in the Payphone Recon. Order, establishes rules to exempt central-office-implemented coin payphone equipment of the kinds currently attached to the public switched telephone network (PSTN) from registration requirements adopted in the Payphone Order. As explained below, this grandfathering of unmodified equipment installed on or before October 8, 1997 will permit an orderly implementation of new Part 68 rules by defining a transition period during which manufacturers and suppliers may use existing inventories without registering this equipment under Part 68. For the reasons discussed below, we establish the dates by which we determine whether equipment is grandfathered, and provide Part 68 applicants 18 months to comply with the new registration requirements. Specifically, terminal equipment that is installed on or before October 8, 1997 does not need to be registered, unless it is subsequently modified. In addition, new terminal equipment that is installed prior to April 8, 1999 is exempt from registration, provided that it is of the type directly connected to a central-office-implemented telephone as of October 8, 1997. II. DISCUSSION 3. In the Payphone Order, the Commission amended Section 68.2(a)(1) and Section 68.3 of the Commission's rules to allow registration of instrument-implemented as well as central-office-implemented payphones. The Commission also exempted existing LEC payphones from compliance with the revised Part 68 requirements in order to avoid imposing the unnecessary costs of registering payphones that have already been connected and do not cause harm to the PSTN. As stated above, the Commission delegated authority to the Common Carrier Bureau "to establish any specific requirements associated with the existing payphone equipment [the Commission] grandfathered from registration requirements" in the Payphone Order. Accordingly, we now adopt Section 68.2(l) to allow terminal equipment connected to a central-office-implemented telephone, that is wired directly on or before October 8, 1997, to remain connected for its service life without registration, unless that equipment is modified. Furthermore, new installation of terminal equipment, including associated premises wiring, may occur until April 8, 1999, without registration, if the terminal equipment is of a type directly connected to a central-office-implemented telephone as of October 8, 1997. The terminal equipment may be connected and reconnected to a central-office-implemented telephone for its service life without registration, unless the equipment is modified. Under our rules, terminal equipment that existed prior to October 8, 1997 can continue to be used without being registered and thus is considered grandfathered. 4. Grandfather provisions are used to assure an orderly implementation of our equipment registration program. Generally, the Commission allows an 18-month transition period that starts on the date new rules become effective for equipment to become compliant with our registration rules. To implement an 18-month period essential to an orderly transition of equipment to the new requirements, we now establish a time frame for equipment governed by the rules adopted in the Payphone Order. Equipment connected no later than October 8, 1997 will be classified as grandfathered and consequently not subject to our registration rules under Part 68. 5. The new dates we prescribe have been calculated to ensure a "transition period during which manufacturers and suppliers may use their existing inventories and bring their equipment into compliance with [Commission] rules." While some suppliers and manufacturers may comply with registration requirements for equipment sooner than our rules require, the new time frame comports with Commission practice of allowing a reasonable interval for achieving compliance. We conclude that the period for grandfathering will assist parties in an orderly transition to the new rule. 6. Accordingly, IT IS ORDERED that, pursuant to Sections 4(i), 4(j), 5, and 276) of the Communication Act of 1934, as amended, 47 U.S.C. Sections 154(i), 154(j), 155, and 276, the Part 68 rule modifications contained in Appendix A ARE ADOPTED and shall become effective 30 days following publication of this Memorandum Opinion and Order in the Federal Register. FEDERAL COMMUNICATIONS COMMISSION Kathleen B. Levitz Deputy Chief, Common Carrier Bureau APPENDIX A Title 47 the Code of Federal Regulations, Part 68 is amended as follows: PART 68-CONNECTION OF TERMINAL EQUIPMENT TO THE TELEPHONE NETWORK 1. The authority citation for Part 68 continues to read as follows: Authority: 47 U.S.C. 151, 154, 155, 201-205, 208, 215, 218, 220, 226, 227, 303, 313, 314, 403, 404, 410, 412, 522. * * * * * 2. Amend  68.2 to add new subsection (l); subsection (l) consists of paragraphs (1) and (2) to read as follows: * * * * * (l)Grandfathered central office implemented payphone equipment. (1) Terminal equipment, including its premises wiring, that is directly connected to a central-office- implemented telephone on or before October 8, 1997, may remain for service life without registration, unless subsequently modified. Service life means the life of the equipment until retired from service. Modification means changes to the equipment that affect the Part 68-related characteristics of that equipment at the network interface. (2) New installation of terminal equipment, including its premises wiring, may occur until April 8, 1999, without registration of any central-office-implemented telephone equipment involved, provided that the terminal equipment is of a type directly connected to a central-office-implemented telephone as of October 8, 1997. This terminal equipment may remain connected and be reconnected to a central-office-implemented telephone.