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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 ) ) Paradyne Corporation ) ) File No. NSD-L-00-37 Petition for Waiver of the Signal Power ) Limitations Contained in ) Section 68.308(e)(1) of the ) Commission's Rules ) MEMORANDUM OPINION AND ORDER Adopted: July 25, 2000 Released: July 26, 2000 By the Chief, Network Services Division, Common Carrier Bureau: 1. On March 17, 2000, Paradyne Corporation (Paradyne) filed with the Chief, Network Services Division (NSD), Common Carrier Bureau (Bureau), a Certification and Request for a waiver of the out-of-band metallic signal power limitations contained in 47 C.F.R. section 68.308(e)(1) of the Commission's rules, so that it may register under Part 68 its Hotwire Rate Adaptive Digital Subscriber Line (RADSL) modem using the same streamlined waiver procedure approved for Asymmetrical Digital Subscriber Line (ADSL) equipment in our Alcatel Order. Paradyne certifies that its equipment satisfies the conditions established in the Alcatel Order for streamlined waiver requests. For the reasons discussed below, we grant Paradyne's request to use the existing streamlined process for ADSL waiver requests. 2. Part 68 Registration Process. All terminal equipment sold in the United States and connected to the public switched telephone network (PSTN) must be registered under Part 68 of the Commission's rules. The Part 68 registration process prevents harm to the PSTN by requiring that the responsible party demonstrate that its equipment conforms to Part 68 requirements. Once the equipment tests show that the applicant's device meets the Part 68 requirements, a registration number is issued, and the device may be sold and connected to the PSTN in the United States. 3. Section 68.308 contains limitations on metallic and longitudinal signal power to protect the network from crosstalk. Excessive metallic signal power in the 100 Hz to 4 kHz range is limited by 47 C.F.R. section 68.308(b). Section 68.308(e)(1) limits the power level of metallic signals in the 4 kHz to 6 MHz range. These limits are represented by a maximum value of root mean square (rms) voltage across the terminals of the equipment when terminated in networks shown in figure in 47 C.F.R., section 68.308, Figure 68.308(a). While section 68.308(e) provides two limitations to prevent crosstalk in telephone company transmission systems or services, Paradyne seeks waiver of the first limitation, the limitation on excessive metallic signal power in the 4 kHz to 6 MHz range. In its Certification and Request, Paradyne certifies that its modem complies with all other sections of Part 68, except for section 68.308(e)(1). 4. Waiver Standard. In analyzing Paradyne's Certification and Request, we consider established legal standards for waiver of the Commission's rules. The Commission will adhere strictly to its rules unless a party can demonstrate that "in the public interest the rule should be waived." Furthermore, the Commission may only waive a provision of its rules for "good cause shown." The Commission must take a "hard look" at applications for waiver and must consider all relevant factors when determining if good cause exists. The party petitioning the Commission for a waiver bears the heavy burden of showing good cause: "[a]n applicant [for a waiver] faces a high hurdle even at the starting gate." In addition, "[t]he agency must explain why deviation better serves the public interest, and articulate the nature of the special circumstances, to prevent discriminatory application and to put future parties on notice as to its operation." Finally, a waiver of one or more portions of the Commission's rules does not excuse an applicant from compliance with the Commission's other requirements. 5. On February 8, 2000, NSD released an Order granting waiver of section 68.308(e) of the Commission's rules to permit Alcatel USA, Inc., to register its Model 1000 Asynchronous Digital Subscriber Line (ADSL) modem, a device that complied with sections 7.14 and 7.15 of ANSI T1.413-1998 standard. In that proceeding, we formulated and applied a two-part test to determine the merits of a request for waiver of Section 68.308(e)(1) to permit registration of non-conforming Customer Premises Equipment (CPE) (Nortel Test). The first prong of the test is an evaluation of the CPE's benefit to the public interest, with an emphasis on the potential gain in consumer choice and value. The second prong of the test is an evaluation of the CPE's potential for causing network harm. The issues raised by Paradyne's Certification and Request are substantially similar to those raised in the Alcatel proceeding. Accordingly, we will apply the same two-part test to the merits of Paradyne's Certification and Request that we applied in the Alcatel Order. 6. Paradyne's RADSL modem. Paradyne's modem is based on RADSL technology. RADSL employs the same basic technology as Asymmetric Digital Subscriber Line (ADSL) with the additional ability to monitor loop conditions and automatically adjust the data rate to maximize performance and reach. 7. The Telecommunications Industry Association (TIA) commented on Paradyne's instant request. TIA filed a letter offering the consensus view of TIA's Engineering Technical Subcommittee, TR41.9, that the scope of the Alcatel Order should be broadly construed to interpret the term 'ADSL' generically rather than as T1.413-compliant or G.992.1-compliant equipment only, thus permitting equipment similar to ADSL, such as Splitterless ADSL and RADSL to be eligible for the streamlined waiver process established in the Alcatel Order. 8. TIA argues that the upstream PSD masks are identical for: a) ADSL in T1.413-1998 and in G.992.1-1999, b) Splitterless ADSL, also known as G.LITE, in T1.419.2000, and c) RADSL in Committee T1 Technical Report No. 59 (TR#59). TIA also argues that, except for RADSL, the aggregate power limits over the range of 25.875 kHz to 138 kHz are the same 12.5 dBm. TIA acknowledges that, to be eligible for the streamlined waiver process, RADSL equipment should be expected to meet the 12.5 dBm limit for aggregate power. 9. Discussion. We find that TIA Engineering Technical Subcommittee, TR41.9, reflects a reasonable level of industry consensus on CPE output limitations intended to protect the viability of the PSTN. TR41.9 uses an open, industry consensus-building process to develop network protection standards and to arrive at positions applicable to the connection of digital and high capacity transmission equipment to the PSTN. TR41.9 members represent carriers, manufacturers, and test laboratories. 10. Accordingly, we find that the RADSL (constrained by a 12.5 dBm limit on aggregate power) and G.LITE technologies are equivalent, in terms of limits on power for purposes of Part 68, to the ADSL technology that was approved for the streamlined waiver process of 68.308(e)(1). We find that these technologies, like the ADSL technologies that we considered in the Alcatel Order, are unlikely to cause harm to the PSTN. Therefore, we will expand the Alcatel Order streamlined waiver process to include modems using these two types of technologies. In order for the Commission to grant a waiver the modem must: (1) meet the transmitter spectral response requirements specified in Section 7.14 of T1.413-1998, and (2) operate with an aggregate power of less than 12.5 dBm over the range 25.875 to 138 kHz as specified in 7.15 T1.413-1998. All the other requirements specified in the Alcatel Order remain the same. 11. In the Alcatel Order, we found that ADSL technology meets the two-prong test for waiver of the Commission's Part 68 rules. The first prong of the test is an evaluation of the equipment's benefit to the public interest, with an emphasis on the potential gain in innovation, consumer choice, and value. We find that the RADSL and G.LITE technology are variations of ADSL technology that provide a similar customer benefit. The second prong of the test for waiver of the Commission's Part 68 rules is an evaluation of the equipment's potential for causing network harm. We have found herein that the RADSL and G.LITE technologies are not likely to cause harm to the network if they meet the conditions specified. By not harming the PSTN in accordance with the Alcatel conditions, these technologies satisfy the second prong of the waiver test. 12. Our decision to grant a waiver only for modems that meet the performance conditions described above is based upon the information in the record before us. In the event it becomes evident that the information is incomplete or inaccurate, and it appears that harm to the PSTN is possible, we note an additional remedy that facilities-based telecommunications carriers may use to protect their networks. First, section 68.108 of the Commission's rules affords carriers certain self-help privileges, enabling them to take necessary actions to protect the PSTN. These actions include temporarily disconnecting or refusing to connect inside wiring or customer premises equipment (CPE) that is likely to cause harm to the PSTN. Pursuant to section 68.108, carriers must notify the customer of their intended action, give the customer an opportunity to correct problems, and inform the customer of his right to complain to the Commission should the customer feel that the carrier has acted improperly. Second, we encourage parties to monitor the performance of these ADSL, RADSL, and G.LITE modems and the networks that serve them, and to gather and share with us information that might be relevant to general harm to the PSTN or cross-talk problems. ORDERING CLAUSES 13. Accordingly, pursuant to authority delegated in sections 0.91 and 0.291 of the Commission's rules, 47 C.F.R. sections 0.91, 0.291, and section 1.3 of the Commission's rules, 47 C.F.R. section 1.3, IT IS HEREBY ORDERED that the request for waiver of section 68.308(e)(1) of the Commission's rules 47 C.F.R.  68.308(e)(1), by Paradyne Corporation, IS GRANTED to the extent discussed herein. 14. IT IS FURTHER ORDERED, that the Certification and Request is granted SUBJECT TO THE FOLLOWING CONDITIONS: that the equipment: (1) meets the transmitter spectral response requirements specified in Section 7.14 of T1.413-Issue Two (1998), and (2) operates with an aggregate power of less than 12.5 dBm over the range 25.875 to 138 kHz as specified in section 7.15 of the same document. FEDERAL COMMUNICATIONS COMMISSION L. Charles Keller Chief, Network Services Division Common Carrier Bureau