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(1) (a) (i) 1) a).K+&,$@`O5Bȗ+&>q 2uka]65`O5T(G2PDefault Paragraph Font5.K+&,$@`O5Bȗ+&>OO#P P##P P#66`O5T(G2P_Equation Caption^aO5.K+&,$@`O5Bȗ+&>OO#PP##PP#67`O5T(G2Pendnote reference^aO5.K+&,$@`O5Bȗ+&>RR#PP##PP#68`O5T(G2Pfootnote reference^aO5.K+&,$@`O5Bȗ+&>R#PP#2#9p;\R69 _5(_>7footnote text _5dK+b70t _5xŗ+tZP70 _5(_>7Document Style _5dK+b70t _5xŗ+t` ` ` .7PC2XXP\  P6QXP/y.C8*X/C\  P6QP.07UC2XXU4  pQX15PC2X3f_XP*f9 xQXX2W!0(Xh0\  P6QhP3I(!X,(\  P6Q,P4{,C8*X3VC*f9 xQX?xxxXRbXx6X@DQX@.W!3(X#h34  pQh5I5I5I5I5(!(!(!(!W"" cap LECs may recover the shortfall, subject to a maximum charge, through PICCs. The PICC  X6is a flat, perline charge assessed on the end user's presubscribed interexchange carrier.֖ yOb$ԍ PICCs also may recover some transport interconnection charges and marketing expenses. 47 C.F.R. 69.153(a), (d). d3. In order to provide price cap LECs, interexchange carriers (IXCs), and end users with adequate time to adjust to the new rate structure, we adopted an approach that phases in the PICC. We also established several different categories of PICCs, setting an initial cap for primary residential and singleline business lines at $0.53 per month for the first year, equal to the amount assessed IXCs in the past for those lines for purposes of the former High Cost  XH6Fund.cH ֖ {O $ԍ Access Charge Reform Order, 12 FCC Rcd at 1602021.c We set initial ceilings on the PICCs for nonprimary residential lines at $1.50 per  X16month and for multiline business lines at $2.75 per month.1֖ {O$ԍ Id. at 16022. The rates must be even lower than these ceilings if the revenues a carrier is permitted to recover under our price cap rules are lower. On January 1, 1999, the PICC ceilings are scheduled to increase by the following amounts: $0.50 plus inflation for primary residential and singleline business lines, $1.00 plus inflation for nonprimary residential lines,  X 6and $1.50 plus inflation for multiline business lines.F ֖ {O$ԍ Id. at 1602023.F  X 6  X $ III. DISCUSSION   Xy6Cd4. On our own motion,$y֖ yO$ԍ 47 C.F.R. 1.108. The filing of a petition for reconsideration tolls the thirtyday period our rules provide  {O$for sua sponte reconsideration. See Central Fla. Enters., Inc. v. FCC, 598 F.2d 37, 48 n.51 (D.C. Cir. 1978),  {OZ$cert. dismissed, 441 U.S. 957 (1979), and cert. denied, 460 U.S. 1084 (1983); Radio Americana, Inc., 44 F.C.C. 2506, 2510 (1961). we postpone the scheduled increase of the PICC ceilings  Xb6from January 1, 1999 to July 1, 1999. In the Access Charge Reform Order, we established a system that enables access charges better to reflect the costs underlying those charges. We remain convinced that recovery of nontraffic sensitive costs through flat charges, rather than minuteofuse charges, on IXCs is the appropriate recovery mechanism for these costs. We believe, however, that we should postpone implementation of the next round of shifts from perminute charges to PICCs. d5. Other adjustments to access charges, most notably those involving universal service  X6and the reductions associated with the annual application of our price cap formula, take effect on July 1, 1999. Earlier this year, we extended from January 1, 1999 until July 1, 1999 the" 0*&&aa6" implementation date for the revised mechanism for determining universal service high cost  X6support for nonrural carriers.֖ {Ob$ԍ FederalState Board on Universal Service, CC Docket No. 9645, Order and Order on Reconsideration, 13 FCC Rcd 13749 (1998). Under current rules, interstate access charges are to go down at that time to reflect the universal service support that incumbent LECs receive through the  X6new high cost support mechanism.c"֖ {O$ԍ Access Charge Reform Order, 12 FCC Rcd at 1614849.c Also on July 1, 1999, price cap LECs' annual access  X6tariffs will become effective. These new tariffs will reflect a downward adjustment of the price cap indices due in large part to the "XFactor" and the low inflation experienced in the  Xv6economy as a whole.J v֖ yO $ԍ 47 C.F.R. 61.43, 61.45.J  XH6d6. If the scheduled increases in the PICC ceilings were not delayed, PICCs that would increase on January 1, 1999 may be reduced due to the new universal service support  X 6mechanism and the XFactor adjustment both taking effect on July 1, 1999. The imposition of higher PICCs on January 1 followed by decreases just six months later will increase consumer confusion and frustration. We instead prefer to minimize rate churn, and so  X 6postpone the scheduled increase to the PICC ceilings.  D֖ yO$ԍ We are not similarly concerned about SLC increases scheduled to take effect on January 1, 1999. While the cap for the multiline business SLC is scheduled to increase, it should affect very few price cap LEC customers, because almost all multiline business line SLCs assessed by price cap LECs are, and will remain, below the current cap. As for the increase in the SLC for nonprimary residential lines, it is unlikely that charge will decrease as the result of universal service and XFactor adjustments on July 1, 1999. Therefore, we believe that rate churn for these customers is unlikely.  X$o IV. FINAL REGULATORY FLEXIBILITY CERTIFICATION  Xy6 C  Xb6d7. In the Access Charge Reform Order,p b ֖ yO$#X\  P6G;/P#э 12 FCC Rcd at 1616068. p we conducted a Final Regulatory Flexibility  XM6Analysis (FRFA), as required by the Regulatory Flexibility Act (RFA). ZML ֖ {OJ $#]\  PC/P#э See 5 U.S.C.  604. The RFA, see 5 U.S.C.  601 et. seq.#x6X@KbX@##]\  PC/P#, has been amended by the Contract With America Advancement Act of 1996, Pub. L. No. 104121, 110 Stat. 847 (1996) (CWAAA). Title II of the  yO!$CWAAA is the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA). The RFA requires that a regulatory flexibility analysis be prepared for noticeandcomment rulemaking proceedings, unless the agency certifies that "the rule will not, if promulgated, have a"n 0*&&aar"  X6significant economic impact on a substantial number of small entities."f ֖ yOy$#X\  P6G;/P#э 5 U.S.C.  605(b).f In this present Third  X6Order on Reconsideration we have, as described supra, revised the rules to postpone the scheduled increases to PICC ceilings from January 1, 1999, to July 1, 1999. We hereby certify that this postponement will not have a significant economic impact on a substantial  X6number of small entities, because the action merely maintains the status quo concerning the maximum PICCs that price cap LECs may charge customers. The present action also,  Xz6therefore, does not affect the previous FRFA. The Commission will send a copy of this Third  Xe6Order on Reconsideration, including this certification, to the Chief Counsel for Advocacy of  XP6the Small Business Administration.ZPX֖ {OY $#X\  P6G;/P#э Id.Z In addition, the Third Order on Reconsideration (or a  X;6summary thereof) and certification will be published in the Federal Register.[;֖ {O $#X\  P6G;/P#э Id. [  X $$  V. PAPERWORK REDUCTION ACT ANALYSIS C d8. The decision contained herein has been analyzed with respect to the Paperwork Reduction Act of 1995, Pub. L. 104-13, and does not contain new and/or modified information collections subject to Office of Management and Budget review.  XU$ VI. ORDERING CLAUSES ĐC d9. Accordingly, IT IS ORDERED that, pursuant to Sections 4(i), and 201205 of the Communications Act, 47 U.S.C. 154(i), and 201205, and Section 1.108 of the Commission's rules, 47 C.F.R. 1.108, we hereby amend 69.153 as set forth in the Appendix. "|0*&&aa"Ԍd 10. IT IS FURTHER ORDERED that the provisions of this Order will be effective thirty days after publication . d11. IT IS FURTHER ORDERED that the Commission's Office of Public Affairs,  X6Reference Operations Division, SHALL SEND a copy of this Third Order on  X6Reconsideration, including the Final Regulatory Flexibility Certification, to the Chief Counsel for Advocacy of the Small Business Administration. d` `  hh FEDERAL COMMUNICATIONS COMMISSION d` `  hh Magalie Roman Salas XdX` ` X XXhhX Secretary (#" 0*&&aa"  X$u APPENDIX Final Rules  i}AMENDMENTS TO THE CODE OF FEDERAL REGULATIONS  X6 C  X$ Part 69 ACCESS CHARGES 1. The authority citation for Part 69 continues to read as follows: Authority: 47 U.S.C. 154(i) and (j), 201, 202, 203, 205, 218, 254, and 403. 2. Section 69.153 is amended by revising paragraphs (c), (d), and (e) to read as follows:  X $ 69.153` ` Presubscribed interexchange carrier charge (PICC). * * * * * d(c) The maximum monthly PICC for primary residential subscriber lines and singleline business subscriber lines shall be the lower of: Xd` ` (1) * * *(# Xd` ` (2) $0.53. On July 1, 1999, this amount shall be adjusted by the inflation factor computed under paragraph (e), and increased by $0.50. On July 1, 2000, and in each subsequent year, this amount shall be adjusted by the inflation factor computed under paragraph (e), and increased by $0.50.(# d(d) * * * Xd` ` (1) The maximum monthly PICC for nonprimary residential subscriber lines shall be the lower of:(# d` `  (i) * * *(#` d` `  (ii) $1.50. On July 1, 1999, this amount shall be adjusted by the inflation factor computed under subparagraph (e), and increased by $1.00. On July 1, 2000, and in each subsequent year, this amount shall be adjusted by the inflation factor computed under subparagraph (e), and increased by $1.00.(#` Xd` ` (2) If the maximum monthly PICC for nonprimary residential subscriber lines is determined using paragraph (d)(1)(i), the maximum monthly PICC for multiline business subscriber lines shall equal the maximum monthly PICC of nonprimary"h$0*&&aa'" residential subscriber lines. Otherwise, the maximum monthly PICC for multiline business lines shall be the lower of:(# XdX` `  (i) * * *(#` XdX` `  (ii) $2.75. On July 1, 1999, this amount shall be adjusted by the inflation factor computed under subparagraph (e), and increased by $1.50. On July 1, 2000, and in each subsequent year, this amount shall be adjusted by the inflation factor computed under subparagraph (e), and increased by $1.50.(#` d(e) For the PICC ceiling for primary residential subscriber lines and singleline business subscriber lines under subparagraph(c)(2), nonprimary residential subscriber lines under subparagraph (d)(1)(ii), and multiline business subscriber lines under subparagraph (d)(2)(ii): Xd` ` (1) On July 1, 1999, the ceiling will be adjusted to reflect inflation as measured by the change in GDPPI for the 18 months ending March 31, 1999.(# Xd` ` (2) On July 1 of each subsequent year, the ceiling will be adjusted to reflect inflation as measured by the change in GDPPI for the 12 months ending on March 31 of the year the adjustment is made.(# * * * * *