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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 ) ) Implementation of the ) Pay Telephone Reclassification ) CC Docket No. 96-128 and Compensation Provisions of the ) Telecommunications Act of 1996 ) ) AT&T Request for Limited Waiver ) of the Per-call Compensation Obligation ) ) ORDER Adopted: April 10, 1998 Released: April 10, 1998 By the Acting Chief, Enforcement Division, Common Carrier Bureau: I. INTRODUCTION 1. This order clarifies certain requirements set forth in the Per-phone Compensation Waiver Order adopted on April 3, 1998, by the Common Carrier Bureau ("Bureau"). That order granted interexchange carriers ("IXCs") a limited waiver of the payphone compensation requirements set forth in the Payphone Orders to enable IXCs to pay to payphone service providers ("PSPs") per-phone instead of per-call compensation for subscriber 800 and access code calls originated from payphones when payphone-specific coding digits are not available from those payphones. This order clarifies the following: (1) the data to be used for the payment of payphone compensation for the fourth quarter of 1997 and first quarter of 1998 for payphones that are not capable of providing payphone-specific coding digits; (2) the method for allocating among payors the payphone compensation requirements for payphones served by non-equal access switches; and (3) the eligibility of payphones on automatic number identification ("ANI") lists. II. BACKGROUND 2. In the Per-phone Compensation Waiver Order, the Bureau concluded that the waiver granted therein to allow IXCs to pay per-phone compensation when payphone-specific coding digits are not available from a payphone is necessary to ensure that PSPs receive fair compensation while local exchange carriers ("LECs"), PSPs, and IXCs transition to providing and receiving payphone-specific coding digits to identify calls from payphones. 3. Previously, the Bureau had adopted the Bureau Coding Digit Waiver Order clarifying the payphone-specific coding digit requirements set forth in the Payphone Orders and granting limited waivers of the requirement that LECs provide payphone-specific-coding digits to PSPs, and that PSPs provide payphone- specific coding digits from their payphones to IXCs, before PSPs can receive per-call compensation from IXCs for subscriber 800 and access code calls. The Bureau explained in the Per-phone Waiver Order that that order serves as a companion order to the Bureau Coding Digit Waiver Order, because in the Per-phone Waiver Order, the Bureau granted IXCs a waiver of the per-call compensation requirement so they may pay per-phone instead of per-call compensation for the payphones for which the Bureau granted waivers in the Bureau Waiver Order and the Bureau Coding Digit Waiver Order. III. DISCUSSION A. Payphone Compensation Payments 4. The Bureau Coding Digit Waiver Order required that payments for payphone compensation be remitted at least on a quarterly basis. That order required that the payment for the October 1997 through December 31, 1997 period be paid no later than April 1, 1998. The Bureau stated in the Per-phone Compensation Waiver Order that because some IXCs will have to obtain additional information and calculate their per-phone compensation amounts, these IXCs may need additional time to make the payments to PSPs for the October 1997 through December 31, 1997 period for payphone compensation. Thus, the order stated that IXCs may make this payment no later than April 30, 1998, but must include additional interest for the period after April 1, 1998, at the rate of 11.25 percent simple interest per year, if the payment was not made by April 1, 1998. 5. In the Per-phone Compensation Waiver Order, the Bureau required that pursuant to the waiver granted therein, with the exception of the compensation method for those payphones that are able to provide payphone-specific coding digits, IXCs must use call volume information obtained from October 1997 through March 31, 1998 (the "sample period"), to establish average subscriber 800 and access code call volumes per-phone to compensate PSPs for calls originated from their payphones during the fourth quarter of 1997 and the first quarter of 1998 (from October 7, 1997 through March 31, 1998). We clarify that if calculating the average call volumes using the six-month "sample period" of data will delay payment for the fourth quarter of 1997 beyond the deadline set forth in that order, IXCs must compensate PSPs for the fourth quarter of 1997 based on data from the fourth quarter of 1997, and compensate PSPs for the first quarter of 1998 based on data from the first quarter of 1998 using the same methodology specified in the Per-phone Compensation Waiver Order but revised to accommodate a three-month rather than a six-month period of call volume and payphone information. B. Payphone Compensation for Payphones Served by Non-equal Access Switches 6. In the Per-phone Compensation Waiver Order, the Bureau stated that payphones served by non-equal access switches must be compensated for 16 calls per-phone per month, until payphone-specific coding digits are available for those payphones. Because the number of payphones on non-equal access switches and the number of calls for which such payphones should be compensated is small, we find it is appropriate to allocate compensation obligations for these payphones among payors in a different manner than other payphones. Therefore, per-phone compensation for PSP payphones served by non-equal access switches will be based on call distribution data submitted to the Commission by the LEC Coalition. The LEC Coalition provided data from three Bell Operating Companies ("BOCs") in an aggregated form illustrating the average calls per-phone per month, and the percentage of average calls per month of the total calls received by each payor. We find, however, compensation due to PSP payphones served by non-equal access switches should be allocated among the top ten carriers receiving the highest amount of subscriber 800 and access code calls as indicated by the LEC Coalition data, because the number of calls for which compensation is due is so small. Were we to require all carriers to compensate payphones served by non-equal access switches, many carriers would be forced to compensate PSPs for mere fractions of calls. 7. Therefore, to compensate PSPs for payphones served by non-equal access switches, each IXC stated herein will multiply its percentage of average calls per month total as stated in the LEC Coalition data by 16 calls per-phone per month. That number is the average number of calls for which that carrier must compensate the PSP for payphones served by non-equal access switches. That number will then be multiplied by three, to determine the quarterly call volume, and then by $0.284 to determine the amount owed. 8. We find that the LEC Coalition data is an appropriate basis upon which to allocate compensation for payphones served by non-equal access switches because the compensation due is small. Notwithstanding our decision in the Per-phone Compensation Waiver Order that this data is not appropriate to assess compensation obligations for all payphones, here this data is representative of the number of compensable calls made from payphones on non-equal access switches and is appropriate for allocating 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. C. Payphones on the ANI list 9. In the Per-phone Compensation Waiver Order, the Bureau stated that payphones can receive compensation only for those months that they were in service. The Bureau Waiver Order stated that payphones appearing on the LEC-provided lists of payphones are eligible for per-call compensation even if they do not transmit payphone-specific coding digits. We clarify that as stated in the Bureau Waiver Order, for payphones that do not provide payphone-specific coding digits, payors must look to the ANI lists to determine which payphones are eligible for compensation. Prior to the Bureau Coding Digit Waiver Order, LECs were required to provide ANI lists on a quarterly basis. That order required that LECs make available on request monthly ANI lists. Thus, for the fourth quarter of 1997 and the first quarter of 1998, payors must use quarterly ANI lists. Thereafter, payors must use the monthly ANI lists that payors can obtain from LECs. If there are disputes between IXCs and PSPs regarding whether certain payphones were in service during a specific period even if they are on the ANI lists, such disputes should not be a basis for delay of payphone compensation payments. IV. CONCLUSION AND ORDERING CLAUSES 10. We conclude that these clarifications to the Per-Phone Compensation Waiver Order are in 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 per-call compensation. 11. Accordingly, pursuant to authority contained in Sections 1, 4, 201-205, 218, 226, and 276 of the Communications Act of 1934, as amended, 47 U.S.C.  151, 154, 201-205, 218, 226, and 276, and the authority delegated by Sections 0.91 and 0.291 of the Commission's rules, 47 C.F.R.  0.91, 0.291, the policies and requirements set forth in the payphone proceeding and the Per-phone Compensation Waiver Order ARE CLARIFIED. 12. IT IS FURTHER ORDERED that this Order is effective upon release thereof. FEDERAL COMMUNICATIONS COMMISSION Robert W. Spangler Acting Chief, Enforcement Division Common Carrier Bureau