PUBLIC NOTICE FEDERAL COMMUNICATIONS COMMISSION 1919 M STREET, N.W. WASHINGTON, D.C. 20554 FCC 97-344 News media information 202/418-0500 Fax-On-Demand 202/418-2830 Internet: http://www.fcc.gov ftp.fcc.gov Released: September 30, 1997 SUMMARY OF CURRENTLY EFFECTIVE COMMISSION RULES FOR INTERCONNECTION REQUESTS BY PROVIDERS OF COMMERCIAL MOBILE RADIO SERVICES On July 18, 1997, the United States Court of Appeals for the Eighth Circuit issued its opinion in Iowa Utilities Board v. FCC. At issue were certain rules promulgated by the Commission in the Local Competition First Report and Order to implement the local competition provisions of the Telecommuni- cations Act of 1996, and codified in Part 51 of the Commission's Rules. The court vacated some rules for all telecommunications service providers seeking interconnection, and other rules only as they apply to providers of services other than Commercial Mobile Radio Services (CMRS). On October 15, 1996, pending its final decision, the court had stayed certain rules. The court dissolved its stay by its final decision. On August 22, 1997, the court vacated other rules. Given the complexity of the proceeding, the Commission takes this opportunity to summarize and clarify the currently effective Commission rules that apply to requests for interconnection by CMRS providers. These rules are in addition to other effec- tive interconnection rules in Part 51 of the Commission's Rules and elsewhere in Title 47, Code of Federal Regulations. The rules the court upheld only as they apply to CMRS providers concern reciprocal compensation for the transport and termination of local telecommunications traffic between local exchange carriers (LECs) and CMRS providers. The Eighth Circuit's decision held that these interconnection rules, as they apply to CMRS providers, were within the Commission's authority under Section 332 of the Communica- tions Act. In addition, all of the Part 51 rules which were not vacated are in full force and effect. The rules the court upheld only for CMRS providers are: 47 C.F.R.  51.701, Scope of transport and termination pricing rules. (a) The provisions of this subpart apply to reciprocal compensation for transport and termina- tion of local telecommunications traffic between LECs and other telecommunications carriers. (b) Local telecommunications traffic. For purposes of this subpart, local telecommunications traffic means: (1) Telecommunications traffic between a LEC and a telecommunications carrier other than a CMRS provider that originates and terminates within a local service area established by the state commission; or (2) Telecommunications traffic between a LEC and a CMRS provider that, at the beginning of the call, originates and terminates within the same Major Trading Area, as defined in s 24.202(a) of this chapter. (c) Transport. For purposes of this subpart, transport is the transmission and any necessary tandem switching of local telecommunications traffic subject to section 251(b)(5) of the Act from the interconnection point between the two carriers to the terminating carrier's end office switch that directly serves the called party, or equivalent facility provided by a carrier other than an incumbent LEC. (d) Termination. For purposes of this subpart, termination is the switching of local telecom- munications traffic at the terminating carrier's end office switch, or equivalent facility, and delivery of such traffic to the called party's premises. (e) Reciprocal compensation. For purposes of this subpart, a reciprocal compensation arrange- ment between two carriers is one in which each of the two carriers receives compensation from the other carrier for the transport and termination on each carrier's network facilities of local telecommunications traffic that originates on the network facilities of the other carrier. 47 C.F.R.  51.703, Reciprocal compensation obligation of LECs. (a) Each LEC shall establish reciprocal compensation arrangements for transport and termina- tion of local telecommunications traffic with any requesting telecommunications carrier. (b) A LEC may not assess charges on any other telecommunications carrier for local telecom- munications traffic that originates on the LEC's network. 47 C.F.R.  51.709(b), Rate structure for transport and termination. (b) The rate of a carrier providing transmission facilities dedicated to the transmission of traffic between two carriers' networks shall recover only the costs of the proportion of that trunk capacity used by an interconnecting carrier to send traffic that will terminate on the providing carrier's network. Such proportions may be measured during peak periods. 47 C.F.R.  51.711(a)(1), Rate structure for transport and termination. (a) Rates for transport and termination of local telecommunications traffic shall be symmetri- cal, except as provided in paragraphs (b) and (c) of this section. (1) For purposes of this subpart, symmetrical rates are rates that a carrier other than an incum- bent LEC assesses upon an incumbent LEC for transport and termination of local telecommuni- cations traffic equal to those that the incumbent LEC assesses upon the other carrier for the same services. 47 C.F.R.  51.715(d), Interim transport and termination pricing. (d) If the rates for transport and termination of local telecommunications traffic in an interim arrangement differ from the rates established by a state commission pursuant to s 51.705, the state commission shall require carriers to make adjustments to past compensation. Such adjustments to past compensation shall allow each carrier to receive the level of compensation it would have received had the rates in the interim arrangement equalled the rates later established by the state commission pursuant to s 51.705. 47 C.F.R.  51.717, Renegotiation of existing non-reciprocal arrangements. (a) Any CMRS provider that operates under an arrangement with an incumbent LEC that was established before August 8, 1996 and that provides for non-reciprocal compensation for transport and termination of local telecommunications traffic is entitled to renegotiate these arrangements with no termination liability or other contract penalties. (b) From the date that a CMRS provider makes a request under paragraph (a) of this section until a new agreement has been either arbitrated or negotiated and has been approved by a state commission, the CMRS provider shall be entitled to assess upon the incumbent LEC the same rates for the transport and termination of local telecommunications traffic that the incumbent LEC assesses upon the CMRS provider pursuant to the pre-existing arrangement. In light of the Eighth Circuit's decision, the Commission is currently evaluating whether there is a need for, and, if so, the extent of, further action regarding CMRS-LEC interconnection. Any such action would be in addition to any petition for certiorari the Commission may file for review of the court's deci- sion striking down the rules the Commission promulgated pursuant to the Telecommunications Act of 1996. For further information, contact Eric Bash at (202) 418-1188, Wireless Telecommunications Bureau, Commercial Wireless Division; Dan Grosh at (202) 418-1310, Wireless Telecommunications Bureau, Policy Division; or Ed Krachmer, at (202) 418-0198, Common Carrier Bureau, Competitive Pricing Division. Action by the Commission on September 25, 1997, by Chairman Hundt, Commissioners Quello, Ness, and Chong. -FCC-