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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: March 20, 1998 Released: March 20, 1998 By the Deputy Chief, Common Carrier Bureau: I. INTRODUCTION 1. In this Order, we direct 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. III. DISCUSSION 5. In order to ensure that all incumbent LEC payphone tariffs in North Carolina comply with Section 276 of the Act, and pursuant to the Commission's Payphone Reclassification Proceeding, the Bureau directs all incumbent LECs in North Carolina to file tariffs for certain intrastate payphone service offerings with the Commission together with the supporting documentation necessary to demonstrate compliance with the requirements of Section 276 and the Commission's implementing rules, including the new services test. All incumbent LEC intrastate tariffs for payphone services that the state commission has not reviewed and/or has not found to be in compliance with Section 276 and applicable Commission regulations are subject to this requirement. This does not include those tariffs that were found by the North Carolina Commission to comply with our requirements. All tariff filings, including supporting information, must comply with Part 61 of the Commission's Rules, 47 C.F.R.  61.1 et seq. We require that these tariffs be filed by May 1, 1998. IV. ORDERING CLAUSES 6. Accordingly, IT IS ORDERED that, pursuant to Section 276 of the Communications Act of 1934, as amended, 47 U.S.C.  276, and through authority delegated pursuant to Sections 0.91 and 0.291 of the Commission's Rules, 47 C.F.R.  091, 0.291, incumbent local exchange carriers in North Carolina SHALL FILE by May 1, 1998 tariffs as described above for intrastate payphone service offerings with the Commission, together with all support documentation necessary to demonstrate compliance with the requirements of Section 276 and the Commission's rules, including the new services test. FEDERAL COMMUNICATIONS COMMISSION James D. Schlichting Deputy Chief, Common Carrier Bureau