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PublicNotice,DA99342(rel.Feb.17,1999);CommonCarrierBureauextendsPeriodforCommentsandReplyCommentsonComplianceDeadlineforHarmonizationOrderRegulations,PublicNotice,DA99510(rel.March12,1999).Thepartieswhofiledcommentswere:AmericanCouncilofIndependentLaboratories(ACIL),BellSouth ^  Corporation(BellSouth),InternationalBusinessMachines,Inc.(IBM),Lucent,Matsushita,Ricoh,3ComCorporation(3Com),andtheTelecommunicationsIndustryAssociation(TIA).ThepartieswhofiledreplycommentswereAmeritechandBellSouth.  !  &8.` hp x (#8S%\  `&Times New RomanS  8.` hp x (#8                  ݀..@HarmonizationOrder,12FCCRcd.at19223. ] !  &8.` hp x (#8S%\  `&Times New RomanS  8.` hp x (#8                  ..@Id.at19220;seealsoBellSouthCommentsat12;LucentCommentsat12;3ComCommentsat35;TIACommentsat1. S !  &8.` hp x (#8S%\  `&Times New RomanS  8.` hp x (#8                  ݀..@HarmonizationOrder,12FCCRcdat19220;seealsoLucentCommentsat1;3ComCommentsat1;TIACommentsat2. 2 !  &8.` hp x (#8S%\  `&Times New RomanS    ..@TheoriginalcompliancedateofApril20,1998,waschangedtoJune8,1998.CommonCarrierBureauSuspendsAmendedPart68RegistrationRulesUntilThirtyDaysAfterCorrectionstotheAmendedRulesArePublishedintheFederalRegister,PublicNotice,DA98913(rel.May14,1998).  !  &8.` hp x (#8S%\  `&Times New RomanS  8.` hp x (#8                  ݀..@HarmonizationOrder,12FCCRcdat19224.  !  &8.` hp x (#8S%\  `&Times New RomanS  8.` hp x (#8                  ݀..@See,e.g.,LucentCommentsat2;3ComCommentsat23.S%\  `&Times New RomanS T !  &8.` hp x (#8S%\  `&Times New RomanS    ..@See,e.g.,TIACommentsat1;RicohCorporationCommentsat1. F !  &8.` hp x (#8S%\  `&Times New RomanS    ..@BellSouthCommentsat2;AmeritechReplyCommentsat2.(2$ 9%!xxxC  $3!C  &i%x  0  3|X %\  `&Times New RomanX\  P6G;P%\  `&Times New Roman&&a\  P6G;&P%\  `&Times New RomanXXj\  P6G;XP4A A`"Antique OliveXX~A P-7XP<6X9`("Courier NewTTd6X@DQ@\  `*Times New RomanTTd\  P6QP\  `*Times New RomanTT6\  P6QP%\  `&Times New RomanT,,5\  P6G;,P\  `*Times New RomanTT\  P6QP#2A`ArialTTomanTw82PQP\  `*Times New RomanTTRRr\  P6QRP%2A`ArialTTomanT&&Q2PQ&P\  `*Times New RomanTTZ\  P6QP%2A`ArialTTomanTI2PQP%2A`ArialTTomanTXXX2PQXP(9%$xxxC  $3!CHP LaserJet 4Si,,,,,,03#37=CIQYag1.a.i.(1)(a)(i)1)a) dv&c&јnU 9%!xxxC  $ C    &i%x _Beforethe  FederalCommunicationsCommissionWashington,D.C.20554  X    IntheMatterof@9)  p @9)0p x (#X0ComplianceDatefor47C.F.R.Section68.2(j)@9)   p NSDL9913  ( E.` hp x (#XE@9)@9)&    B.` hp x (#XB&i%%&i&i%%&i       ORDER   8    XX      &i%%&i&i%%&i  0p x (#X0̀Adopted:April29,1999 p Released:April29,1999'8 P  H.` hp x (#pXHBytheChief,NetworkServicesDivision,CommonCarrierBureau:  I.INTRODUCTION    2  1  .3  ԁInitsAugust22,1997ReportandOrderamendingPart68oftheCommissionsrules,the T CommissionharmonizeditsregulationsgoverningtheregistrationofcustomerpremisesterminalequipmentwiththoseofCanada.         1     ByharmonizingtheUnitedStatesregulationswiththoseof   Canada,theCommissionsoughttopromotebarrier-freetradebetweenCanadaandtheUnitedStates,inkeepingwiththespiritoftheNorthAmericanFreeTradeAgreement( NAFTA).AsaresultoftheseamendmentstoPart68,manufacturersineithercountrywillbeabletodesignandtestterminalequipmenttocomplywithasingle,consistentsetoftechnicalstandardsacceptedinboththeUnitedStatesandCanada.  2  2  .3  ԁTheamendedruleswerepublishedintheFederalRegisteronNovember19,1997,andultimatelybecameeffectiveonJune8,1998.6               2     󀀀Becausewereceivednumerousqueriesexpressingconcernregardingthelanguageofnewrule ! section68.2(j)(3),             p   3     weissuedaPublicNoticerequestingcommentastowhetherthelanguageoftheamendedruleneedstobeclarified.Commentersrespondedwithanumber h" ofconcernsregardingnewSection68.2(j)(3).InthisOrder,weclarifythelanguageofSection68.2(j)(3),'             `   4     andgrantmanufacturersanextensionoftime,toDecember19, "L 1999,tocomplywithSection68.2(j)(3).  II.BACKGROUND   ..@23.3  ԁIntheHarmonizationOrder,theCommissionaddressedtwopolicyobjectives:    TherecordsupportsourtentativeconclusionthatamendmentofPart68asdescribedabove[toharmonizeU.S.andCanadianregulations]shouldlowerthepriceconsumerspayforterminalequipmentbyfacilitatinggreaterefficienciesinthemanufacturingandtestingofterminalequipment....Furthermore,therecordsupportsourtentativeconclusionthat,asamended,therulesremainconsistentwiththeCommissionslongstandingcommitmenttoensurethatnopublicharmresultsfromattachmentofprivateequipmenttothePublicSwitchedNetwork( PSN).               ConsistentwithCommissionsfirstpolicyobjectivetolowerpricestoconsumersbyfacilitatinggreaterefficienciesinthemanufacturingandtestingofterminalequipment,theHarmonizationOrdercontainedagrandfatheringprovisionsothatmanufacturersandretailerswillnothavetodiscardcustomerpremisesequipment( CPE)alreadyregisteredandmanufactured.TheCommissionstatedthatthegrandfatheringprovisionappliesto equipmentalreadyinuseandshownnottocauseharmtothenetwork.           Accordingly,theCommissionruledthatnewequipmentmanufactured18monthsaftertheeffectivedateoftheHarmonizationOrderwouldhavetoconformtothenewrequirementsestablishedintheOrderdesignedtoharmonizetheequipmentrequirementsoftheUnitedStateswiththoseofCanada.           ..@24.3  ԁSeverallocalexchangecarriers("LECs")andmanufacturerssubmittedcommentsinresponsetoourPublicNotice.        Basedonthesecomments,weconcludethatthelanguageofnewSection68.2(j)(3)appearstohavecreatedwidespreaduncertaintyaboutwhetherequipmentregisteredunderthepreHarmonizationrulescouldcontinuetobemanufacturedandsoldafterMay19,1999,andwhethersuchequipmentwouldhavetobereregisteredunderthenewrules.Accordingly,weclarifythetextofSection68.2(j)(3)hereintospecifythatthedateofMay19,1999wasintendedtobethelastdayonwhichnoncomplyingequipmentcouldbemanufactured,solongastheequipmentisofatypewhichhasbeeninoperationsinceJune8,1998.    ׀WefurtherconcludethatthedelaystomanufacturersrolloutoperationsthatmayhavebeencausedbytheconfusionregardingSection68.2(j)(3)warrantanextensionoftheMay19,1999compliancedatetoDecember19,1999.  III.DISCUSSION   ..@25.3  ԁIntheHarmonizationOrder,theCommissionclearlyexpresseditsintenttograndfathercustomerpremisesequipmentregisteredandmanufacturedpriortotheHarmonizationOrdersrequirements,aslongasthatequipmenthadbeenshownnottocauseharmtothenetwork.           󀀀TheCommissionnoteditsagreementwithcommentersthatifreregistrationofsuchequipmentwererequired,manufacturerswouldincursubstantialexpense,andtherewouldbenoconsequentpublicbenefitserved.TheCommissionsfinallanguageforSection68.2(j)(3)states:     Terminalequipmentincludingpremiseswiringandprotectiveapparatus(ifany)directlyconnectedtothenetworkon[June8,1998],mayremainconnectedandbereconnectedforlifewithoutregistration,unlesssubsequentlymodified.Newinstallationsofterminalequipment,includingpremiseswiringandprotectiveapparatus(ifany)maybeinstalled(includingadditionstoexistingsystems)uptoMay19,1999,withoutregistrationofanyterminalequipmentinvolved,providedthattheterminalequipmentisofatypedirectlyconnectedtothenetworkasof[June8,1998].Thisterminalequipmentmayremainconnectedandbereconnectedforlifewithoutregistration,unlesssubsequentlymodified.    ..@26.3  ԁSeveralcommentersraiseanissuewithregardtotheclarityofthisrulesection.    Thesecommentersarguethatthephrase maybeinstalled...uptoMay19,1999isunclearinviewoftheCommissionsdiscussioninthetextoftheHarmonizationOrder.󀀀CommentersarguethatthislanguageseemstoimplythatequipmentmanufacturedpriortoMay19,1999,butnotyetinstalledincustomerpremises,wouldhavetobereregisteredbythemanufacturer.    ׀Thesecommentersareconcernedbecausethisresultwouldnotbepractical.Themanufacturer,ofcourse,hasnowayofknowingwhichofitsequipmenthasbeeninstalledbecauseinstallationisoutofitscontrol.WeagreewiththesecommentersthatinviewoftheCommissionsdiscussion,manufacturersandretailersshouldnotberequiredtodiscardunsoldinventoriesofpreviouslyregisteredCPE,norshouldmanufacturersbeheldaccountableforwhentheirproductsareinstalledbytheultimateconsumer.WedonotbelievethattheseresultswouldbeinthepublicinterestasintendedbytheCommission...@27.3  ԁForthesereasons,wecannotagreewithBellSouthandAmeritechthattheCommissionintendedtobarpreviouslyregisteredequipmentfromthenetworkmerelybecausesuchequipmentdidnothappentobeinstalledbyMay19,1999.BellSouthandAmeritechargue,insupportofthisposition,thatsignificantnetworkproblemsresultfromthefailureofnetworkterminalequipmenttoproperlyrespondtolightningsurges,whichtheCommission'sTypeBrequirementsaddress.    ׀WebelievethatthisissueissomewhatdifferentfromthepurposeoftheHarmonizationOrder,whichwasnottoretroactivelycureanypotentialproblemswiththeUnitedStatesnetwork,buttoharmonize,onanongoingbasis,CanadianandUnitedStatesterminalequipmentrequirements.Wefindthat,forpurposesofthenewHarmonizationrules,itwouldservenosignificantpublicinterestpurposetoretroactivelychangeourrulesforequipmentthathasbeensafelyinoperationforsometime.WebelievethatequipmentprovedtobesafebyvirtueofhavingbeenregisteredsinceJune8,1998,isveryunlikelytodamagethenetworkinthefuture.Moreover,theagreementreachedinconsensusproceedingswithCanadianregulatorscontemplatedharmonizationonagoingforwardbasis;itisnotnecessary,nordidtheCommissionintend,tocureretroactivelyalldifferencesbetweentheCanadianandUnitedStatesterminalequipmentsystems.NeitherAmeritechnorBellSouthprovidedevidencethatretroactiveharmonizationisnecessarytoprotectthenetwork,northattheCommissionintendedthisresult.Thus,weinterpretnewSection68.2(j)(3)onthispointtorequirethatterminalequipment(includinganypremiseswiringandprotectiveapparatus)maybenewlyinstalled(includingadditionstoexistingsystems)ifmanufacturedbythedateestablishedinfra,withouttherequirementofanyfurtherregistrationorreregistrationofanyinvolvedterminalequipment,providedthattheterminalequipmentisofatyperegisteredasofJune8,1998.Weemphasizethat47C.F.R.68.2(j)(3)doesnotrequirereregistrationofpreviouslyregisteredequipment...@28.3  ԁManufacturersofequipmenthaveexperiencedsignificantuncertaintyregardingtheiroperationsduringthependencyoftheinstantPublicNoticeandcommentperiod.Wehavelearnedthatproductiondelayshaveresultedfromthisissue,andconsequently,onourownmotionwewillextendtheMay19,1999deadlinebysevenmonthstoDecember19,1999,inordertoallowmanufacturersadditionaltimetocomplywiththeHarmonizationrules.Thus,previouslyregisteredequipmentmanufacturedbeforemidnightofDecember19,1999,maycontinuetobeconnectedandreconnectedtothepublicswitchedtelephonenetworkforthedurationofitsusefullife,aslongasthatparticulartypeofequipmenthasbeenshownnottocauseharmtothenetwork.AllequipmentmanufacturedafterDecember19,1999mustcomplywiththeCommissionsPart68rulesasamendedbytheHarmonizationOrderandasclarifiedherein.Aswehavealreadynoted,however,equipmentdesignsthataremodifiedsolelytocomplywithSection68.2(j)(3)neednotberetestedandreregisteredifthedesignswereregisteredpriortobeingmodified.ModificationsmadesolelytocomplywithSection68.2(j)(3)areofthetypethatwillnotofferanychanceofharmtothenetwork.Suchequipmentdesignshavealreadybeenshownnottocauseharmtothenetworkandretestingandreregistrationwouldservenopublicpurpose.WeemphasizethatCPEmodifiedforreasonsotherthantocomplywithSection68.2(j)(3),exclusively,mustbereregisteredandretestedpursuanttoPart68srequirements. ..@` ..V ..Hl..؁III.h..hORDERINGCLAUSES ..@29.3  ԁAccordingly,ITISORDERED,pursuanttoauthoritydelegatedauthorityinSections0.91and0.291oftheCommissionsrules,47C.F.R.0.91,0.291,andSection1.3oftheCommissionsRules,47C.F.R.1.3,thatanextensionofthedateafterwhichallequipmentmanufacturedmustcomplywiththeCommission'sPart68rules,asamendedbytheHarmonizationOrderandasclarifiedherein,isgrantedfromMay19,1999,untilDecember19,1999...@210.3  ԁITISFURTHERORDEREDthattheHarmonizationOrderisclarifiedtorequirethatterminalequipment(includinganypremiseswiringandprotectiveapparatus)maybenewlyinstalled(includingadditionstoexistingsystems)ifmanufacturedbyDecember19,1999,withouttherequirementofanyfurtherregistrationorreregistrationofanyinvolvedterminalequipment,providedthattheterminalequipmentisofatyperegisteredasofJune8,1998.SuchequipmentneednotberetestedorreregisteredifmodifiedsolelytocomplywithSection68.2(j)(3)...@211.3  ԁITISFURTHERORDEREDthattheHarmonizationOrderisclarifiedtorequirethatcustomerpremisesequipmentmodifiedforreasonsotherthantocomplywiththeHarmonizationOrderrules,exclusively,mustberetestedandreregisteredpursuanttoPart68srequirements...@` ..V ..Hl..؁h..h..FEDERALCOMMUNICATIONSCOMMISSION..@` ..V ..Hl..؁h..h..AnnaM.Gomez..@` ..V ..Hl..؁h..h..Chief,NetworkServicesDivision..@` ..V ..Hl..؁h..h..CommonCarrierBureau