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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 ) ) North Carolina Utilities Commission ) Order Dismissing and Directing Filings,) ) Docket P-100, Sub 84b, Adopted May 15, 1997) ORDER Adopted: April 30, 1998 Released: April 30, 1998 By the Chief, Competitive Pricing Division, Common Carrier Bureau: I. INTRODUCTION 1. In this Order, we grant the request of BellSouth Telecommunications, Inc. (BellSouth), on behalf of itself and other North Carolina telephone companies (collectively North Carolina Telcos), to extend the filing deadline from May 1, 1998 to July 1, 1998 for all incumbent local exchange carriers (LECs) in North Carolina to file with the Federal Communications Commission (Commission) tariffs for intrastate payphone service offerings that have not been determined by the North Carolina Utilities Commission (North Carolina Commission) to comply with Section 276 of the Communications Act of 1934, as amended (Act) and the Commission's rules. II. BACKGROUND 2. Section 276 of the Act establishes requirements designed to promote competition among payphone service providers and promote the widespread deployment of payphone services to the benefit of the general public. In its Payphone Reclassification Proceeding, the Commission adopted regulatory requirements implementing Section 276. The Commission required, inter alia, that incumbent LECs file tariffs for basic payphone lines at the state level only, and that unbundled features and functions provided by LECs to their own payphone operations or to others be tariffed at both the state and federal levels. The Commission required that all incumbent LEC payphone tariffs filed at the state level be cost-based, nondiscriminatory, and consistent with both Section 276 and the Commission's Computer III tariffing guidelines. The Commission determined that the rates assessed by LECs for payphone services tariffed at the state level must satisfy the requirements that the Commission applies to new interstate access services proposed by incumbent LECs subject to price cap regulation (the "new services test"). The new services test is a cost-based test that establishes the direct cost of providing the new service as a price floor. LECs then add a reasonable amount of overhead to derive the overall price of the new service. The Commission stated that it would rely initially on state commissions to ensure that the rates, terms, and conditions applicable to the provision of basic payphone lines comply with the requirements of Section 276. The Commission determined that state commissions that are unable to review these tariffs may require incumbent LECs operating in their states to file these tariffs with the Commission. The Common Carrier Bureau (Bureau) has emphasized that the Commission retains jurisdiction under Section 276 to ensure that all requirements of Section 276 and the Payphone Reclassification Proceeding are met. 3. In its May 15, 1997 decision in Docket P-100, the North Carolina Commission concluded, based on its staff recommendation, that incumbent LEC payphone filings that proposed rates for certain new payphone services met the new services test and that no further review of those filings was necessary. The North Carolina Commission further concluded, however, that it was unable to review incumbent LECs' rates for existing payphone service offerings because it lacked the time and resources to determine whether these service offerings were lawful. The North Carolina Commission directed all LECs who determined, based on their own analysis, that any existing payphone service rates do not meet the new services test to file revised rates and supporting data with the FCC. 4. On September 12, 1997, the Bureau informed the North Carolina Commission by letter that it would require incumbent LECs in North Carolina to file with the Commission tariffs that set forth the rates, terms, and conditions associated with all payphone services that the North Carolina Commission did not review and did not find to be in compliance with Section 276 of the Act and the Commission's implementing regulations. 5. On March 20, 1998, the Bureau ordered all incumbent LECs in North Carolina to file with the Commission by May 1, 1998 tariffs for intrastate payphone service offerings, together with supporting documentation, for all payphone services that had not been determined by the North Carolina Commission to comply with the requirements of Section 276 and the Commission's implementing rules, including the new services test. To date, only one carrier has filed intrastate payphone tariffs with the Commission, and that carrier has withdrawn its filing. 6. In its request, BellSouth states that on April 29, 1998, the North Carolina Telcos filed a petition with the North Carolina Commission requesting that the North Carolina Commission reconsider its May 15, 1997 decision and review all incumbent LEC tariff filings for intrastate payphone services for compliance with Section 276 of the Act and the Commission's implementing rules. BellSouth states that it is requesting an extension until July 1, 1998 of the Commission's filing requirement in order to give the North Carolina Commission adequate time to act on the petition. It argues that permitting the North Carolina Commission to review all intrastate payphone services is the most efficacious approach available because the North Carolina Commission is in the best position to determine whether these tariffs comply with Section 276 and the Commission's rules, including the new services test. III. DISCUSSION 7. As noted above, the Commission indicated in the Payphone Reclassification Proceeding that it would rely on state commissions in the first instance to review LEC payphone tariffs and ensure that the rates, terms, and conditions applicable to the provision of basic payphone lines comply with the requirements of Section 276. It is consistent with the Commission's Payphone Reclassification Proceeding to allow additional time for the North Carolina Commission to reconsider its decision whether to review incumbent LEC tariffs for intrastate payphone offerings filed in North Carolina. Moreover, granting an extension of time will not unduly delay consideration of these tariffs by the Commission if that should prove necessary. Therefore, we grant BellSouth's request for an extension of time to July 1, 1998 for incumbent LECs in North Carolina to file with the Commission tariffs for intrastate payphone service offering that have not been determined by the North Carolina Commission to comply with Section 276 and the Commission's implementing rules. IV. ORDERING CLAUSES 8. Accordingly, IT IS ORDERED that the Motion for Extension of Time filed by BellSouth Telecommunications, Inc. on behalf of itself and other North Carolina telephone companies IS GRANTED. FEDERAL COMMUNICATIONS COMMISSION Jane E. Jackson Chief, Competitive Pricing Division Common Carrier Bureau