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INTRODUCTION T  S- ` TP I. A. 1. a.(1)(a) i) a) I. 1. 1. a.(1)(a) i) a)x1. ` ` This order clarifies certain requirements set forth in the Perphone Compensation Waiver  S- xlOrder^V {O*-  Ѝ#X\  P6G;ɒP#xImplementation of the Pay Telephone Reclassification and Compensation Provisions of the  {O- xTelecommunications Act of 1996, Memorandum Opinion and Order, DA 98642 (rel. Apr. 3, 1998) ("Perphone  {O-Compensation Waiver Order"). adopted on April 3, 1998, by the Common Carrier Bureau ("Bureau"). That order granted  xjinterexchange carriers ("IXCs") a limited waiver of the payphone compensation requirements set forth in  St- xythe Payphone OrderstV {O-  Ѝx#X\  P6G;ɒP#Implementation of the Pay Telephone Reclassification and Compensation Provisions of the  {O- xTelecommunications Act of 1996, CC Docket No. 96128, Report and Order, 11 FCC Rcd 20,541 (1996) ("Report  {O-  Zand Order"); Order on Reconsideration, 11 FCC Rcd 21,233 (1996) ("Order on Reconsideration") (together the  {O`-  "Payphone Orders").  The Payphone Orders were affirmed in part and vacated in part. See Illinois Public Telecomm.  {O* -  Ass'n v. FCC, 117 F.3d 555 (D.C. Cir. 1997) ("Illinois Public Telecomm."); see also Second Report and Order, 13  {O -  FCC Rcd 1778 (1997) ("Second Report and Order"), pets. for recon. pending, review pending, MCI Telecomm. Corp.  {O!-  v. FCC, D.C. Circuit No. 971675 (filed Nov. 7, 1997); Sprint Corp. v. FCC, D.C. Circuit No. 971685 (filed Nov.  {O"-  13, 1997); Personal Communications Industry Association v. FCC, D.C. Circuit No. 971709 (filed Dec. 1, 1997);  {OR#-Illinois Public Telecommunications #X\  P6G;ɒP#Association v. FCC, D.C. Circuit No. 971713 (filed Dec. 3, 1997). #&a\  P6G;u&P# to enable IXCs to pay to payphone service providers ("PSPs") perphone instead  xof percall compensation for subscriber 800 and access code calls originated from payphones when"N 0*''99A"  S- xNpayphonespecific coding digits  yOh- Ѝ#K\  P@QɒP#Payphonespecific coding digits provide a method for LECs to transmit, with the automatic number   hidentification (ANI), information (coding number or digits) identifying a call as having been placed specifically from  {O-  a payphone. Order on Reconsideration, 11 FCC Rcd 21,26566, para. 64. See Implementation of the Pay Telephone  {O-  Reclassification and Compensation Provisions of the Telecommunications Act of 1996, Memorandum Opinion and  {O-Order, CC Docket No. 96128, DA 98481 (rel. Mar. 9, 1998) ("Bureau Coding Digit Waiver Order").  are not available from those payphones. This order clarifies the  xfollowing: (1) the data to be used for the payment of payphone compensation for the fourth quarter of  x1997 and first quarter of 1998 for payphones that are not capable of providing payphonespecific coding  S- xldigits;~ {O -ԍ#X\  P6G;ɒP#xSee Perphone Compensation Waiver Order at para. 22. (2) the method for allocating among payors the payphone compensation requirements for  S`- xLpayphones served by nonequal access switches;6$` {O - kԍ#X\  P6G;ɒP#See id. at paras. 3031. The compensation method for small and midsized LECs qualifying for the FLEX   ANI waiver is the same as for payphones served by nonequal access switches. Therefore, the compensation method  {O -  set forth herein for payphones on nonequal access switches also applies to those small and midsized LECs. See id.  yOl-at para. 32.#f\  PCu&P#6 and (3) the eligibility of payphones on automatic number  S8-identification ("ANI") lists.\8  {O-  ԍx#X\  P6G;ɒP#See id. at para. 22 (stating that payphones can only be compensated for the months that they were in  {O- xservice); but see Bureau Coding Digit Waiver Order at paras. 4, 33 (stating that payphones on LEC ANI lists must  yOh-be compensated).#f\  PCu&P#ѷ  S-x` `   II.hh BACKGROUND x  S- ` x 2. ` ` In the Perphone Compensation Waiver Order, the Bureau concluded that the waiver  xjgranted therein to allow IXCs to pay perphone compensation when payphonespecific coding digits are  xMnot available from a payphone is necessary to ensure that PSPs receive fair compensation while local  xMexchange carriers ("LECs"), PSPs, and IXCs transition to providing and receiving payphonespecific coding digits to identify calls from payphones.  S - x  S - ` 2x3. ` ` Previously, the Bureau had adopted the Bureau Coding Digit Waiver Order clarifying the  S - xpayphonespecific coding digit requirements set forth in the Payphone Orders and granting limited waivers  xof the requirement that LECs provide payphonespecificcoding digits to PSPs, and that PSPs provide  xpayphonespecific coding digits from their payphones to IXCs, before PSPs can receive percall  S- xkcompensation from IXCs for subscriber 800 and access code calls.  {O-ԍx#X\  P6G;ɒP#See Bureau Coding Digit Waiver Order at paras. 1920.#&a\  P6G;u&P#Ѻ The Bureau explained in the Per S- x>phone Waiver Order that that order serves as a companion order to the Bureau Coding Digit Waiver  S- x{Order, because in the Perphone Waiver Order, the Bureau granted IXCs%\ yO#-  !Ѝx#X\  P6G;ɒP#For purposes of paying compensation for compensable calls and other associated obligations, such as  {O#- xYtracking calls, we note that the term "IXC" includes a LEC when it provides interstate, intraLATA toll service. See  {O$- x;Report and Order, 11 FCC Rcd at 20,584, para. 83 n.293; Order on Reconsideration, 11 FCC Rcd at 21,270, paras."$0*%%$"  {O- x7475 & 21,278, para. 92. Carriers required to pay percall compensation pursuant to the Payphone Orders also are  yOZ-referred to as "payors" in this order. #&a\  P6G;u&P#% a waiver of the percall""0*%%99"  x<compensation requirement so they may pay perphone instead of percall compensation for the payphones  S- x[for which the Bureau granted waivers in the Bureau Waiver Order^ " {O-  Ѝx#X\  P6G;ɒP#Implementation of the Pay Telephone Reclassification and Compensation Provisions of the  {Od-Telecommunications Act of 1996, 12 FCC Rcd 16,388 (1997) ("Bureau Waiver Order").#f\  PCu&P#^ and the Bureau Coding Digit Waiver  S-Order. ^~ {O-  Ѝx#X\  P6G;ɒP#This order relies on the record established for the Bureau Coding Digit Waiver Order and ex partes received  {O - xsubsequent to the release of that order. Pleading Cycle Established for Petitions to Waive Payphone Coding Digits,  {Od -Public Notice, 12 FCC Rcd 17,340 (1997) ("Public Notice").#f\  PCu&P#  Sd- III. DISCUSSION ĐTP  S-A.x Payphone Compensation Payments  S- ` x4.` ` The Bureau Coding Digit Waiver Order required that payments for payphone  x/compensation be remitted at least on a quarterly basis. That order required that the payment for the  Sx- xOctober 1997 through December 31, 1997 period be paid no later than April 1, 1998.g x {O-ԍxSee Bureau Coding Digit Waiver Order at para. 4.g The Bureau  SP - xNstated in the Perphone Compensation Waiver Order that because some IXCs will have to obtain  xadditional information and calculate their perphone compensation amounts, these IXCs may need  xadditional time to make the payments to PSPs for the October 1997 through December 31, 1997 period  xfor payphone compensation. Thus, the order stated that IXCs may make this payment no later than April  x30, 1998, but must include additional interest for the period after April 1, 1998, at the rate of 11.25  S -percent simple interest per year, if the payment was not made by April 1, 1998.j 6  {O`-ԍxSee Perphone Compensation Waiver Order at para. 3.j xx 0 x  S:- ` x5. ` ` In the Perphone Compensation Waiver Order, the Bureau required that pursuant to the  xwaiver granted therein, with the exception of the compensation method for those payphones that are able  xto provide payphonespecific coding digits, IXCs must use call volume information obtained from October  x[1997 through March 31, 1998 (the "sample period"), to establish average subscriber 800 and access code  xcall volumes perphone to compensate PSPs for calls originated from their payphones during the fourth  St- xquarter of 1997 and the first quarter of 1998 (from October 7, 1997 through March 31, 1998).K t  {O -ԍxSee id. at para. 22.K We  x.clarify that if calculating the average call volumes using the sixmonth "sample period" of data will delay  xpayment for the fourth quarter of 1997 beyond the deadline set forth in that order, IXCs must compensate  xyPSPs for the fourth quarter of 1997 based on data from the fourth quarter of 1997, and compensate PSPs  xMfor the first quarter of 1998 based on data from the first quarter of 1998 using the same methodology  S- xspecified in the Perphone Compensation Waiver Order but revised to accommodate a threemonth rather"Z 0*%%99"  S-than a sixmonth period of call volume and payphone information.: {Oh-ԍxId.:  S-B. xPayphone Compensation for Payphones Served by Nonequal Access Switches  S-  Sb- ` x6.` ` In the Perphone Compensation Waiver Order, the Bureau stated that payphones served  xby nonequal access switches must be compensated for 16 calls perphone per month, until payphone S- xspecific coding digits are available for those payphones.GZ {O -ԍxId. at para. 30.G Because the number of payphones on nonequal  xaccess switches and the number of calls for which such payphones should be compensated is small, we  xfind it is appropriate to allocate compensation obligations for these payphones among payors in a different  x.manner than other payphones. Therefore, perphone compensation for PSP payphones served by non xequal access switches will be based on call distribution data submitted to the Commission by the LEC  SL - x Coalition.L  {O-ЍxSee Letter to Rose Crellin, FCC from Michael K. Kellogg, LEC Coalition at 2 (Mar. 27, 1998).#f\  PCu&P# The LEC Coalition provided data from three Bell Operating Companies ("BOCs") in an  xkaggregated form illustrating the average calls perphone per month, and the percentage of average calls  S - xper month of the total calls received by each payor.y ~ {O-Ѝx#X\  P6G;ɒP#See id.y We find, however, compensation due to PSP  x=payphones served by nonequal access switches should be allocated among the top ten carriers receiving  xthe highest amount of subscriber 800 and access code calls as indicated by the LEC Coalition data,  xzbecause the number of calls for which compensation is due is so small. Were we to require all carriers  x{to compensate payphones served by nonequal access switches, many carriers would be forced to compensate PSPs for mere fractions of calls.  S- ` 2x7.` ` Therefore, to compensate PSPs for payphones served by nonequal access switches, each  xIXC stated herein will multiply its percentage of average calls per month total as stated in the LEC  S- x.Coalition data by 16 calls perphone per month.0  yOD-  lԍxThe LEC Coalition data indicates the following percentage allocation: (1) AT&T: 37.08%; (2) MCI:  x25.33%; (3) WorldCom: 12.17%; (4) Sprint: 10.76%; (5) LCI: 2.83%; (6) Frontier: 2.75%; (7) BOC weighted  xaverage: 2.19%; (8) Allnet Dial 1 Service: 1.14%; (9) Cable & Wireless: 0.95%; (10) Switched Services: 0.63%.  {M-#f\  PCu&P##X\  P6G;ɒP#Id.#&a\  P6G;u&P#0 That number is the average number of calls for which  xythat carrier must compensate the PSP for payphones served by nonequal access switches. That number  x[will then be multiplied by three, to determine the quarterly call volume, and then by $0.284 to determine  S-the amount owed.D  {O!-  ЍxSee Perphone Compensation Waiver Order at para. 22 (stating that each payor must compensate PSPs based  {O~"-on the percall compensation amount set forth in the Second Report and Order).#f\  PCu&P#D x  S- ` Cx8. ` ` We find that the LEC Coalition data is an appropriate basis upon which to allocate  xcompensation for payphones served by nonequal access switches because the compensation due is small."T 0*%%99"  S- x0Notwithstanding our decision in the Perphone Compensation Waiver Order that this data is not  S- xappropriate to assess compensation obligations for all payphones, {OB-ԍxSee Perphone Compensation Waiver Order at para. 30.#f\  PCu&P#ђ here this data is representative of the  xLnumber of compensable calls made from payphones on nonequal access switches and is appropriate for  xzallocating each carrier's share of compensation obligations. Therefore, the concerns raised in reference to using this data as a compensation method for all payphones are not present here.  S- C.xPayphones on the ANI list x  S- ` $x9. ` ` In the Perphone Compensation Waiver Order, the Bureau stated that payphones can  S- xreceive compensation only for those months that they were in service.Z {O -ԍx#X\  P6G;ɒP#Perphone Compensation Waiver Order at para. 22.#f\  PCu&P#ѵ The Bureau Waiver Order stated  xythat payphones appearing on the LECprovided lists of payphones are eligible for percall compensation  SP - xeven if they do not transmit payphonespecific coding digits.qP  {O-ԍxBureau Waiver Order, 12 FCC Rcd at 16,39091, paras. 914.q We clarify that as stated in the Bureau  S* - x[Waiver Order, for payphones that do not provide payphonespecific coding digits, payors must look to  S - xythe ANI lists to determine which payphones are eligible for compensation. ~ {O"-ԍx#X\  P6G;ɒP#Bureau Coding Digit Waiver Order at paras. 4, 33.#f\  PCu&P#Ѷ Prior to the Bureau Coding  S - xDigit Waiver Order, LECs were required to provide ANI lists on a quarterly basis. That order required  S - xthat LECs make available on request monthly ANI lists.  {Oh-ԍx#X\  P6G;ɒP#See id. at para. 36.#f\  PCu&P#љ Thus, for the fourth quarter of 1997 and the  xfirst quarter of 1998, payors must use quarterly ANI lists. Thereafter, payors must use the monthly ANI  xLlists that payors can obtain from LECs. If there are disputes between IXCs and PSPs regarding whether  xcertain payphones were in service during a specific period even if they are on the ANI lists, such disputes  S-should not be a basis for delay of payphone compensation payments.k {OZ-ԍxSee Perphone Compensation Waiver Order at para. 12.k  S-x` `  IV.CONCLUSION AND ORDERING CLAUSES x  Sx- ` x 10. ` ` We conclude that these clarifications to the PerPhone Compensation Waiver Order are  xin the public interest, because they will further the goals of Section 276 of the Act, that PSPs be compensated for each and every completed call and will ease the transition to percall compensation.  S- ` Px 11. ` ` Accordingly, pursuant to authority contained in Sections 1, 4, 201205, 218, 226, and 276  xzof the Communications Act of 1934, as amended, 47 U.S.C.  151, 154, 201205, 218, 226, and 276,  xMand the authority delegated by Sections 0.91 and 0.291 of the Commission's rules, 47 C.F.R.  0.91,  Sb- x0.291, the policies and requirements set forth in the payphone proceeding and the Perphone  S<-Compensation Waiver Order ARE CLARIFIED. "<4 0*%%99"Ԍ S-ԙx 12. ` ` IT IS FURTHER ORDERED that this Order is effective upon release thereof.  S-x` `  hh@FEDERAL COMMUNICATIONS COMMISSION(#(#X x` `  hh@ $v  x $v  x` ` x` `  hh@hRobert W. Spangler x` `  hh@hActing Chief, Enforcement Division x` `  hh@hCommon Carrier Bureau