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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) ) CCB Pol 97-13 ) Waiver from Customer ) Proprietary Network Information ) Notification Requirements ) ORDER Adopted: December 16, 1997; Released: December 16, 1997 By the Acting Chief, Policy and Program Planning Division, Common Carrier Bureau: I. INTRODUCTION 1. In February 1996, Congress passed the Telecommunications Act of 1996 (1996 Act). The 1996 Act added a new section 222 to the Communications Act of 1934, as amended, that addresses customer proprietary network information (CPNI). Previously, in the Computer II, Computer III, GTE ONA, and BOC CPE Relief proceedings, the Commission had imposed CPNI requirements on American Telephone and Telegraph Company (AT&T), the Bell Operating Companies (BOCs), and GTE Corporation (GTE) as nonstructural safeguards applicable to the provision of enhanced services and customer premises equipment (CPE). These safeguards include requirements that AT&T, the BOCs, and GTE send CPNI notices annually to their multi-line business customers. 2. On May 17, 1996, the Commission released a Notice of Proposed Rulemaking to specify and clarify the obligations of telecommunications carriers under section 222, and to examine which, if any, of the Commission's CPNI requirements should be retained in light of that provision. On November 13, 1996, the Common Carrier Bureau waived the annual CPNI notification requirements for multi-line business customers for 1996 in response to a request for exemption from these requirements from Pacific Telesis (PacTel). For the reasons stated below, and to avoid potential customer confusion, we again waive those requirements for AT&T, the BOCs, and GTE, pending Commission action in the CPNI rulemaking proceeding, CC Docket No. 96-115. This limited waiver does not, however, relieve AT&T, the BOCs, or GTE of their obligations to comply with section 222 or other Commission CPNI requirements that are consistent with the 1996 Act. II. BACKGROUND 3. The CPNI multi-line business customer notification requirements stem from the Computer II, Computer III, GTE ONA, and BOC CPE Relief proceedings. These requirements vary depending on whether the CPNI will be used to market CPE or enhanced services. With respect to CPE, the BOCs are required to send their multi-line business customers annual CPNI notices before using those customers' CPNI for marketing purposes. Each notice must be in writing, describe the carrier's CPNI obligations and the customer's CPNI rights, and include a response form through which a customer may restrict access to its CPNI. AT&T is required to provide such notification to all of its WATS and private line customers through a one-time insert in their network services bills before using those customers' CPNI to market CPE. In the enhanced service context, the BOCs, AT&T, and GTE are all required to provide their multi-line business customers with similar annual notices before using those customers' CPNI to market enhanced services. Carriers may send out the notices any time during the calendar year. 4. In the NPRM, the Commission sought comment on the effect of section 222 on its CPNI requirements, including the annual notification requirements for multi-line business customers. The Commission determined that section 222 did not displace the existing CPNI requirements that were consistent with the 1996 Act and that those requirements would remain in effect pending the outcome of the CPNI rulemaking. The Commission also invited comment on whether it should retain the existing CPNI requirements. III. DISCUSSION 5. The Commission, on its on motion or on petition, may exercise its discretion to waive such requirements on the basis of good cause shown, and where the particular facts would make strict compliance inconsistent with the public interest. A waiver, therefore, may be appropriate if special circumstances warrant a deviation from the general rule, and such a deviation would better serve the public interest than adherence to the general rule. 6. We conclude that special circumstances exist in this case to warrant granting AT&T, the BOCs, and GTE a temporary waiver of the Commission's CPNI multi-line business notification requirements, pending Commission action in the CPNI rulemaking. We also conclude that such a waiver would better serve the public interest than adherence to those requirements. The Commission adopted its current CPNI requirements to ensure that the multi-line business customers of AT&T, the BOCs, and GTE were aware of their CPNI rights. Any CPNI notices AT&T, the BOCs, and GTE would send those customers prior to release of a report and order in the CPNI rulemaking likely would be followed by new CPNI notices after that release that reflect the actions taken by the Commission in that rulemaking. Instead of making multi-line business customers aware of their CPNI rights, this combination of notices likely would create substantial customer confusion. Moreover, the notification process imposes significant administrative burdens on carriers. Because parties to the CPNI rulemaking present divergent views regarding the scope of carrier obligations under section 222, any CPNI notice required after the release of a report and order in that rulemaking may differ from the notices required under the Commission's existing rules, thus potentially generating both confusion and unnecessary expense. 7. When the Commission established the annual CPNI notification requirements for AT&T, the BOCs, and GTE, it anticipated neither the enactment of section 222 nor the potential for customer confusion created by the timing of a rulemaking to implement that section. We find that these unanticipated developments constitute the requisite special circumstances that warrant a temporary waiver of the Commission's annual CPNI notification requirements. In addition, because grant of the waiver would reduce the potential for customer confusion, we find that a temporary waiver of those notification requirements would better serve the public interest than adherence to those requirements. 8. This limited waiver will extend only until the Commission releases a report and order in the CPNI rulemaking. In granting this temporary waiver, we express no opinion nor make any assumptions on any matter at issue in the CPNI rulemaking. We also emphasize that this waiver does not relieve any telecommunications carrier of its obligation to comply with section 222 or other Commission CPNI requirements that are consistent with the 1996 Act. IV. ORDERING CLAUSES 9. Accordingly, IT IS ORDERED, pursuant to sections 4(i) and 222 of the Communications Act of 1934, as amended, and sections 0.91, 0.291, and 1.3 of the Commission's rules, 47 C.F.R.  0.91, 0.291, and 1.3, that the requirements that AT&T, the BOCs, and GTE give their multi-line business customers annual notice of their CPNI rights ARE WAIVED, pending Commission release of a Report and Order in the CPNI rulemaking. 10. IT IS FURTHER ORDERED, pursuant to sections 4(i) and 222 of the Communications Act of 1934, as amended, and sections 0.91, 0.291, and 1.3 of the Commission's rules, 47 C.F.R.  0.91, 0.291, and 1.3, that this Order IS EFFECTIVE UPON RELEASE. FEDERAL COMMUNICATIONS COMMISSION Carol E. Mattey Acting Chief, Policy and Program Planning Division, Common Carrier Bureau