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"  " ? ?" ? ?" ? ?" " ? ?  ?? ?  ?  ? ?!?!?!??!~???!?!????????????|??? ??  ???? ? ? ???????8?x?x? ? ??? ?? ?? ? ?? ? ? ?  ? ? ?  ??  ?  ?? 0? ?? 8 ?? 8?? ?? ??? ???   @ ? ? ? ! ?!$$?$?$??#??#?8?##?# ??# ?# ?% %~&''?''?'?'''?'*)*?*p*|*~*?*?*?À**?----CCC C ?C ?C E E E ?E E E ?EEEE?EDEEEG?GGG G G ?8 6 6 6 ?6? ?5 5 7 7 7       ?   ?  ?  ? ?? ?  ? ?  ? ?  ?? ??  ?? ??  ?? ??  ?? ?  ??   ?   ?   ?          ǀ      ?              ?  ? ? ?  ?? ? À8 ? ?         ?  ? ?   ?       ?  ?À   À      ??    ? ?? ?   ?    ?  ?  À    ??    ?  ?   ? ?           ?      ? ?        ?     >   ??       ?  ?          ?     ?   ?   ?            ?? ? ??  ? ?   ?            ?        ??  ?  ?    &  '  '        ?       ?            ??  ??  ? ? ?   ?    ?                        ?   ??   ?   ? ?ǀ   ?ǀ  ? ?À  ? ?À   ?À   ?À   ?         ?         ?  ?  π       ?   ?            ?  À ?        ? ? ?      ?    8?       ? ? ~  ?  ? ?  ? ?  ?    ?  ? ??  ?   ?   ? ??  ?   ?  ? ? ? ? ? ? ? ? ?  ? ?   ?   ?   ?  ?  ? ?? ? ? ??? ~?   ? ? ? ?? ? ??  ? ? ??  ?  ?  ?À? ? ?? ?? ?? ? ? ? ?? ?? ??? ? ?? ?? ? ? ?? ? ?? ??  ??  ???  ?  ?  ? ?? ??  ?  ?  >?  ?  ?? - ?: 9 4ǀ? ?4 4 4? 4 4 4 4 5? 5 4 ?4 ?4 5 5 5 ?1? ?1 ?1 ?1 ?0 1x 1 / /? ?/π / / / .? ??.? ?. <. - - - --,,?,,-?----?+?* ??* ?+,>,,,?,?,?,--.?.?.?.%?À%%%%%%?%%?%?%?%&&'''?'?'?''?'())))x)?)?)?))*+++ǀX? π? ? ??? ##?&#&#? %#0%#x?%#?x%#?|%#?%#?%#?%#?%#%#%#%# ?%# $# ?$#?$# $# ?$# $#$#$#$#$#$#$#$###??####?##?##?#$ ?#$'$?'$'*'*'+'++XC S-   Figure 1  Figure 1 c?  ?<  `$$#K2pPG;#у ` $News media Information 202 / 4180500 `$FaxOnDemand 202 / 4182830 `$Internet: http://www.fcc.gov  f@R`c!$] ftp.fcc.gov#&h2pPG;&#у Federal Communications Commission 1919 M Street, N.W. Washington, D. C. 20554  #^2pPG;#y: 0 dddy  M8i#^2pPG;##,92pPG;3,#This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action. See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).   y: Rdddhy  M8 i U 1  1  Figure 1  Figure 1 y!HHhh@Uddfcclogo.wpgHHy!  XddtG8u  H#S2pPG;# PUBLIC NOTICE c ` `  hhCqpp#&a\  P6G;u&P#DA 981198#x6X@`7X@#  S- #&a\  P6G;u&P#  S-` `  hhCqppReleased: June 19, 1998  S`- PLEADING CYCLE ESTABLISHED FOR COMMENT ON REMAND ISSUES IN THE  S8-5^PAYPHONE PROCEEDING   S-?. (CC Docket No. 96128)  S- \  S-   Sp-Comments Due: July 13, 1998q  SH -Reply Comments Due:July 27, 1998 ` `  hhCI. Introduction  S - C? ~ S- z  C  v This Public Notice seeks further comment on certain issues raised by the decision of the United  S - d(#States Court of Appeals for the District of Columbia Circuit in MCI Telecommunications Corporation, et  SZ- d(#al. v. FCC.Z~ O<ԍ` ` #X\  P6G;ɒP##X\  P6G;ɒP#MCI v. FCC, No. 971675, slip op. (D.C. Cir. May 15, 1998).#x6X@`7X@# In MCI v. FCC, the court granted in part and denied in part petitions for review of the  S4- d(#Commission's Second Order,~j4h~ M<<ԍ` ` #X\  P6G;ɒP#Implementation of Pay Telephone Reclassification and Compensation Provisions of the  {O-Telecommunications Act of 1996, Second Report and Order, CC Docket No. 96128, 13 FCC Rcd 1778 (1997)  {O-("Second Order").#x6X@`7X@#~ and remanded, but did not vacate, the case to the Commission for further  S- d(#proceedings.~ OH<ԍ` ` #X\  P6G;ɒP#See AlliedSignal Inc. v. NRC, 988 F.2d 146, 151 (D.C. Cir. 1993); Checkosky v. SEC, 23 F.3d 452, 463 (D.C. Cir. 1994) (opinion of Silberman, J.). Although the court did not vacate the Commission's  {O-Second Order, noting that to do so would leave payphone service providers (PSPs) essentially uncompensated for coinless calls originated from payphones, the court stated that "[i]f within six months from the issuance of our mandate, the Commission has not responded adequately to our remand, any adversely affected party may request  OB<effective relief from the court." MCI v. FCC, slip op. at 6.#x6X@`7X@#  Therefore, all of the requirements of the Second Order"including those portions that were  d(#remanded to the Commission"remain in effect pending further action by the Commission on remand.  d(#The court further held that the Commission has authority to readjust the compensation rate retroactively.  d(#Accordingly, we place the industry on notice that should the equities so dictate, payphone compensation"4 0*))"  d(#.payment obligations (or the absence of such obligations) incurred by providers of interexchange services  d(#and compensation levels paid or received under our existing rules pending action on remand may be  d(#subject to retroactive adjustment in order to undo the effects of applying aspects of the current rules that  S-were identified by the court as potentially arbitrary.j O<ԍ#X\  P6G;ɒP#` ` #X\  P6G;ɒP#See  Natural Gas Clearinghouse v. FERC, 965 F.2d 1066, 107375 (D.C. Cir. 1992); Public  {O-Utils. Comm'n of California v. FERC, 988 F.2d 154, 16263 (D.C. Cir. 1993); see also MCI v. FCC, slip op. at  yO-8 (recognizing the Commission's authority to issue refunds).#x6X@`7X@#  S8-= II. Issues for Comment Đ\  S- v In MCI v. FCC, the court concluded that the Commission did not adequately justify the derivation  d(#zof a compensation rate for coinless payphone calls. In particular, the court held that the Commission  d(#Lfailed to explain why a marketbased rate for coinless calls could be derived by subtracting avoided costs  Sr- d(#from a market rate charged for coin calls.r O <ԍ` ` #X\  P6G;ɒP#MCI v. FCC, slip op. at 5.#x6X@`7X@#ѥ The court noted that the Commission's reasoning may have  d(#depended on the premise that the market rate for coin calls generally reflects the costs for those calls. The  d(#.court stated that this assumption would be true in a competitive market where costs and rates converge,  S - d(#but that the Commission did not connect this premise with its reasoning in the Second Order. Moreover,  d(#jthe court noted that the Commission did not claim that costs and rates do in fact converge in the coin call  S -market.  M<ԍ` ` #X\  P6G;ɒP#Id. #x6X@`7X@#я  S\- v NIn light of the court's decision in MCI v. FCC, we seek comment on competition in the payphone  d(#market since the deregulation of payphones and the impact of deregulation on the local coin rate. To that  d(#yend, we seek comment and evidence on whether the local coin rate reflects competitive market conditions  d(#and the extent to which costs and rates converge in the coin call market. We also seek comment on the  d(#similarities and differences between the market segments for coin and coinless calls and the factors  d(#Lattributable to these similarities and differences, including the use of payphones to initiate both types of  d(#calls. We further seek comment on whether, and how, the distinctions between these market segments  d(#should affect the determination of a reasonable default compensation amount for coinless calls. Parties  d(#should address any market imperfections that might affect the use of the local coin rate as a marketbased  d(#surrogate for coinless calls, including locational monopolies, and limitations on the use of pennies in payphones.  S~- v The Second Order concluded that coin and coinless calls share certain joint and common costs,  d(#because each type of call generally uses the same piece of equipment. Therefore, we seek comment on  d(#the reasonableness of adjusting the local coin rate for cost differences between providing coin and coinless  d(#calls as a marketbased mechanism for deriving fair compensation for coinless calls. We ask that parties  d(#respond specifically to the concerns raised by the court in establishing the appropriate percall  d(#compensation amount using this approach. We also seek comment on other marketbased methodologies  d(#that could be used to establish a percall compensation rate for coinless calls. In suggesting alternative"80*(&(&(("  d(#ymarket approaches, parties should address, for example, how a payphone service provider would use the  d(#marketbased approach to set a price for coinless calls in a deregulated market when providing a number of related types of services using substantially the same payphone equipment.  S`- v We will incorporate in this proceeding the comments and reply comments filed in the Second  S:- d(#Order proceeding and in response to petitions for reconsideration of the Second Order. Parties may also  d(#file additional information regarding specific payphone costs for providing coinless calls and the differences in costs for providing coin calls.  S-4 III.  Ex Parte Presentations  Su- \  SM -  !x This is a "permitbutdisclose proceeding" and subject to the "permitbutdisclose" requirements  S% - xunder Section 1.1206(b) of the rules, 47 C.F.R.  1.1206(b), as revised. Ex Parte presentations are  xpermitted, except during the Sunshine Agenda period, provided that they are disclosed as stated in the  S - xCommission's rules.  O?<ԍ` ` #X\  P6G;ɒP#See generally 47 C.F.R.  1.1202, 1.1203, 1.1206.#x6X@`7X@#ѽ Persons making oral ex parte presentations are reminded that memoranda  xsummarizing the presentation must contain a summary of the substance of the presentation and not merely  x?a listing of the subjects discussed. More than a one or two sentence description of the views and  xarguments presented is generally required. See 47 C.F.R. 1.1206 (b)(2), as revised. Other rules  xjpertaining to oral and written presentations are set forth in Section 1.1206 (b), as well. The Commission  S- xrequires all written ex parte presentations or summaries of oral ex parte presentations in this proceeding to be served on all parties to this proceeding.  S- IV. Comment Filing Dates ĐTP   xPursuant to applicable procedures set forth in Sections 1.415 and 1.419 of the Commission's rules,  xj47 C.F.R.  1.415, 1.419, interested parties may file comments with the Office of the Secretary, Federal  xLCommunications Commission, Room 222, 1919 M St. N.W., Washington, D.C. 20554 on or before July  S- x13, 1998 , and reply comments on or before July 27, 1998 . To file formally in this proceeding,  xparticipants must file an original and four copies of all comments, reply comments, and supporting  xcomments. In addition, parties should file two copies of any such pleadings with the Chief, Enforcement  xDivision, Common Carrier Bureau, Stop 1600A, Room 6008, 2025 M Street, N.W., Washington, D.C.  x20554. Parties should also file one copy of any documents filed in this docket with the Commission's  xcopy contractor, International Transcription Services, Inc., 1231 20th Street, N.W., Washington, D.C.  xz20036. Comments and reply comments will be available for public inspection during regular business  S-hours in the FCC Reference Center (Room 239), 1919 M Street, N.W., Washington, D.C.  S-  xFor further information, contact Greg Lipscomb, Enforcement Division, Common Carrier Bureau, 202/4180960. x` `  Action by the Chief, Common Carrier Bureau  Y"- X   X` hp x (#%'0*,.8135@8: