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X4WASHINGTON, D.C. 20554`(# DA 99 é695 ă   yxTdddhy  aE#6\  P6Q?P#News media information 202/4180500 FaxOnDemand 202/4182830 Internet: http://www.fcc.gov ftp.fcc.gov  X'#XP\  P6QCXP#` `  ,hh]pp Released: April 12, 1999  Xx4  Xa'  COMMON CARRIER BUREAU ANNOUNCES .INITIATIVE TO UNDERTAKE COMPREHENSIVE REVIEW OF  X3 '  PART 32 AND ARMIS REQUIREMENTS Đc The Common Carrier Bureau announces that it is undertaking a comprehensive review of the Commission's current accounting rules under Part 32, Uniform System of Accounts and  &m A &m the reporting requirements of the Automated Reporting Management Information System ("ARMIS"). This comprehensive review will be undertaken in collaboration with State regulatory commissions, which will provide States a reasonable opportunity to confer on reform initiatives and their impact on the States, as well as interested members of industry and the public. The Commission has announced that the 2000 Biennial Review process is a top priority. Our advanced efforts in undertaking this comprehensive review will complement the Commission's 2000 Biennial Review process and will insure that the goals of continued deregulation are fully met.  X4In the telecommunications industry, where technology and legal developments are constantly undergoing change, and particularly, as the local exchange business becomes increasingly competitive, it is imperative that regulatory requirements be reviewed and updated. Indeed, the primary goal of the Telecommunications Act of 1996 ("1996 Act") is to develop efficient competition by opening all telecommunications markets through a pro X~4competitive, deregulatory national policy framework. At the same time, however, the 1996 Act requires certain accounting and reporting safeguards to ensure that these competitive goals and objectives are realized. At present, in addition to the Commission's 1998 Biennial Review of several of the accounting and reporting requirements, there are a number of petitions and rulemakings pending before the Commission proposing to streamline and eliminate accounting and reporting requirements imposed on the largest incumbent local exchange carriers under Part 32 and ARMIS. These proceedings raise important issues about the need for certain accounting and reporting requirements and whether these requirements impose unnecessary burdens on the LECs as implementation of the competitive and deregulatory provisions of the 1996 Act moves forward. These proceedings also raise issues about what information is needed by the Commission to carry out its statutory obligations and responsibilities. In addition, because most State regulatory commissions rely on the Commission's accounting and reporting requirements, these proceedings will have a significant effect on the State commissions. %)0*0*0* 'e@d;[!t,Lght 199T'#crThorporatioԌSome of the accounting and reporting issues pending before the Commission will be addressed in the Commission's 1998 Biennial Review process which is likely be resolved shortly. For those issues not resolved in this process, we are initiating a broad and comprehensive review of the Commission's accounting and reporting requirements. The comprehensive review will be undertaken in two phases. Phase 1, which will begin immediately, will address current accounting and reporting requirements that can be eliminated or streamlined in order to minimize the burdens on the industry while retaining sufficient information needed for the Commission and State agencies to meet their responsibilities. The Bureau intends to have its recommendations on Phase 1 rule changes to the Commission by midyear, which will enable the Commission to take action on these recommendations by the end of the year. Phase 2, which will begin in the last quarter of this year, will examine the current accounting and reporting structure and address longterm changes needed as local exchange markets become competitive, and will assess what, if any, interim measures should be made as competitive milestones are reached. The Bureau believes that by initiating this comprehensive review in two phases, all parties will benefit. Phase 1 will seek to accomplish immediate streamlining measures, while Phase 2 will examine broader and more extensive deregulatory measures. In this way, the Commission can better bring about reduced accounting and reporting measures that will prove beneficial and useful to the public, the industry, and agencies with oversight responsibilities, and achieve both the procompetitive and deregulatory objectives of the 1996 Act. To afford interested parties an opportunity to participate in this comprehensive review process, the Bureau will hold an initial workshop on Wednesday, April 21, 1999, at 2:30 p.m. in Conference Room 5B516 at our Portals location. Parties should be prepared to address measures that can be undertaken in Phase 1 to streamline and improve the accounting and reporting process. During this initial session, we will announce further details on how the review initiative will proceed. For further information, contact Tim Peterson at (202) 4181575 (voice), (202) 4180484 (TTY) concerning reform of accounting rules and JoAnn Lucanik at (202) 4180873 (voice), (202) 4180484 (TTY) concerning reform of reporting requirements.